75R11097 JJT-D                           

         By Chisum                                             H.B. No. 3462

         Substitute the following for H.B. No. 3462:

         By Howard                                         C.S.H.B. No. 3462

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to transferring certain responsibilities of the Texas

 1-3     Natural Resource Conservation Commission related to certain

 1-4     radioactive materials to the Texas Department of Health.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Sections 401.011(a) and (b), Health and Safety

 1-7     Code, are amended to read as follows:

 1-8           (a)  The department is the Texas Radiation Control Agency.

 1-9     The department has jurisdiction over activities and substances

1-10     regulated under this chapter except as provided by Subsection (b)

1-11     and Subchapters F[, G,] and K.

1-12           (b)  The commission has jurisdiction to regulate and

1-13     license[:]

1-14                 [(1)]  the disposal of radioactive substances except

1-15     by-product material defined by Section 401.003(3)(B)[; and]

1-16                 [(2)  the recovery and processing of source material].

1-17           SECTION 2.  Section 401.104(b), Health and Safety Code, is

1-18     amended to read as follows:

1-19           (b)  The commission by rule shall provide for licensing for

1-20     the disposal of radioactive material except by-product material

1-21     defined by Section 401.003(3)(B).  The department by rule shall

1-22     provide for licensing the disposal of by-product material defined

1-23     by Section 401.003(3)(B).

1-24           SECTION 3.  Section 401.262, Health and Safety Code, is

 2-1     amended to read as follows:

 2-2           Sec. 401.262.  MANAGEMENT OF CERTAIN BY-PRODUCT MATERIAL.

 2-3     The department [commission] has sole and exclusive authority to

 2-4     assure that processing and disposal sites are closed and that

 2-5     by-product material is managed and disposed of in compliance with:

 2-6                 (1)  the federal commission's applicable standards; and

 2-7                 (2)  closure criteria the federal commission and the

 2-8     United States Environmental Protection Agency have determined are

 2-9     protective of human health and safety and the environment.

2-10           SECTION 4.  Section 401.2625, Health and Safety Code, is

2-11     amended to read as follows:

2-12           Sec. 401.2625.  LICENSING AUTHORITY.  The commissioner

2-13     [commission] has sole and exclusive authority to grant, deny,

2-14     renew, revoke, suspend, amend, or withdraw licenses for source

2-15     material recovery and processing or [, including the] disposal of

2-16     by-product material.

2-17           SECTION 5.  Sections 401.263(a), (c), (d), (e), and (f),

2-18     Health and Safety Code, are amended to read as follows:

2-19           (a)  If the department [commission] is considering the

2-20     issuance, renewal, or amendment of a license to process materials

2-21     that produce by-product materials or a license to dispose of

2-22     by-product material and the department determines that the licensed

2-23     activity will have a significant impact on the human environment,

2-24     the department [commission] shall prepare or have prepared a

2-25     written environmental analysis.

2-26           (c)  The department [commission] shall give notice of the

2-27     analysis as provided by board [agency] rule and shall make the

 3-1     analysis available to the public for written comment not later than

 3-2     the 31st day before the date of the hearing on the license.

 3-3           (d)  After notice is given, the department [commission] shall

 3-4     provide an opportunity for written comments by persons affected.

 3-5           (e)  The analysis shall be included as part of the record of

 3-6     the department's [commission's] proceedings.

 3-7           (f)  The board by rule [commission] shall prohibit major

 3-8     construction with respect to an activity that is to be licensed

 3-9     until the requirements of Subsections (a), (b), (c), and (e) are

3-10     completed.

3-11           SECTION 6.  Sections 401.264(a), (c), and (d), Health and

3-12     Safety Code, are amended to read as follows:

3-13           (a)  The department [commission] on its own motion may or on

3-14     the written request of a person affected shall provide an

3-15     opportunity for a public hearing on an application over which the

3-16     department [commission] has jurisdiction to determine whether to

3-17     issue, renew, or amend a license to process materials that produce

3-18     by-product  materials in the manner provided by Chapter 2001,

3-19     Government Code, and permit appearances with or without counsel and

3-20     the examination and cross-examination of witnesses under oath.

3-21           (c)  The department [commission] shall make a record of the

3-22     proceedings and provide a transcript of the hearing on request of,

3-23     and payment for, the transcript or provision of a sufficient

3-24     deposit to assure payment by any person requesting the transcript.

3-25           (d)  The department [commission] shall provide an opportunity

3-26     to obtain a written determination of action to be taken.  The

3-27     determination must be based on evidence presented to the department

 4-1     [commission] and include findings.  The written determination is

 4-2     available to the public.

 4-3           SECTION 7.  Section 401.265, Health and Safety Code, is

 4-4     amended to read as follows:

 4-5           Sec. 401.265.  CONDITIONS OF CERTAIN BY-PRODUCT MATERIAL

 4-6     LICENSES.  The department [commission] shall prescribe conditions

 4-7     in a radioactive material license issued, renewed, or amended for

 4-8     an activity that results in production of by-product material to

 4-9     minimize or, if possible, eliminate the need for long-term

4-10     maintenance and monitoring before the termination of the license,

4-11     including conditions that:

4-12                 (1)  the license holder will comply with the applicable

4-13     decontamination, decommissioning, reclamation, and disposal

4-14     standards that are prescribed by the board [or commission] and that

4-15     are compatible with [equivalent to or more stringent than] the

4-16     federal commission's standards for sites at which those ores were

4-17     processed and at which the by-product material is deposited; and

4-18                 (2)  the ownership of a disposal site, other than a

4-19     disposal well covered by a permit issued under Chapter 27, Water

4-20     Code, and the by-product material resulting from the licensed

4-21     activity are transferred, subject to Sections 401.266-401.269, to:

4-22                       (A)  the state; or

4-23                       (B)  the federal government if the state declines

4-24     to acquire the site, the by-product material, or both the site and

4-25     the by-product material.

4-26           SECTION 8.  Section 401.266(a), Health and Safety Code, is

4-27     amended to read as follows:

 5-1           (a)  The board [commission] by rule or [by] order or the

 5-2     department by order may require that before a license covering land

 5-3     used for the disposal of by-product material is terminated, the

 5-4     land, including any affected interests in the land, must be

 5-5     transferred to the federal government or to the state unless:

 5-6                 (1)  the federal commission determines before the

 5-7     license terminates that the transfer of title to the land and the

 5-8     by-product material is unnecessary to protect the public health,

 5-9     safety, or welfare or to minimize danger to life or property;  or

5-10                 (2)  the land is held in trust by the federal

5-11     government for an Indian tribe, is owned by an Indian tribe subject

5-12     to a restriction against alienation imposed by the federal

5-13     government, is owned by the federal government, or is owned by the

5-14     state.

5-15           SECTION 9.  Section 401.267, Health and Safety Code, is

5-16     amended to read as follows:

5-17           Sec. 401.267.  ACQUISITION OF CERTAIN BY-PRODUCT MATERIALS

5-18     AND SITES.  The department [commission] may acquire by-product

5-19     material and fee simple title in land, affected mineral rights, and

5-20     buildings at which that by-product material is disposed of and

5-21     abandoned so that the by-product material and property can be

5-22     managed in a manner consistent with protecting public health,

5-23     safety, and the environment.

5-24           SECTION 10.  Section 401.269, Health and Safety Code, is

5-25     amended to read as follows:

5-26           Sec. 401.269.  MONITORING, MAINTENANCE, AND EMERGENCY

5-27     MEASURES.  (a)  The department [commission] may undertake

 6-1     monitoring, maintenance, and emergency measures in connection with

 6-2     by-product material and property for which it has assumed custody

 6-3     under Section 401.267 that are necessary to protect the public

 6-4     health and safety and the environment.

 6-5           (b)  The department [commission] shall maintain the

 6-6     by-product material and property transferred to it in a manner that

 6-7     will protect the public health and safety and the environment.

 6-8           SECTION 11.  Sections 401.270(a), (b), (e), and (f), Health

 6-9     and Safety Code, are amended to read as follows:

6-10           (a)  If the department [commission] finds that by-product

6-11     material or the operation by which that by-product material is

6-12     derived threatens the public health and safety or the environment,

6-13     the department [commission] by order may require any action,

6-14     including a corrective measure, that is necessary to correct or

6-15     remove the threat.

6-16           (b)  The department [commission] may issue an emergency order

6-17     to a person responsible for an activity, including a past activity,

6-18     concerning the recovery or processing of source material or the

6-19     disposal of by-product material if it appears that there is an

6-20     actual or threatened release of source material or by-product

6-21     material that presents an imminent and substantial danger to the

6-22     public health and safety or the environment, regardless of whether

6-23     the activity was lawful at the time.  The emergency order may be

6-24     issued without notice or hearing.

6-25           (e)  The department [commission] shall use the security

6-26     provided by the license holder to pay the costs of actions that are

6-27     taken or that are to be taken under this section.  The department

 7-1     [commission] shall send to the comptroller a copy of its order

 7-2     together with necessary written requests authorizing the

 7-3     comptroller to:

 7-4                 (1)  enforce security supplied by the licensee;

 7-5                 (2)  convert an amount of security into cash, as

 7-6     necessary; and

 7-7                 (3)  disburse from the security in the fund the amount

 7-8     necessary to pay the costs.

 7-9           (f)  If an [the] order issued by the department under

7-10     [commission pursuant to] this section is adopted without notice or

7-11     hearing, the order shall set a time, at least 10 but not more than

7-12     30 days following the date of issuance of the emergency order, and

7-13     a place for a hearing to be held in accordance with the rules of

7-14     the board [commission].  As a result of this hearing, the

7-15     department [commission] shall decide whether to affirm, modify, or

7-16     set  aside the emergency order.  All provisions of the emergency

7-17     order shall remain in force and effect during the pendency of the

7-18     hearing, unless otherwise altered by the department [commission].

7-19           SECTION 12.  Sections 401.412(a) and (b), Health and Safety

7-20     Code, are amended to read as follows:

7-21           (a)  Notwithstanding any other provision of this chapter and

7-22     subject to Sections [Section] 401.102 and 401.415, the commission

7-23     has sole and exclusive authority to directly regulate and to grant,

7-24     deny, renew, revoke, suspend, amend, or withdraw licenses for the

7-25     disposal of radioactive substances.  In this subsection,

7-26     "radioactive substance" does not include by-product material as

7-27     defined by Section 401.003(3)(B).

 8-1           (b)  Notwithstanding any other provision of this chapter, the

 8-2     commissioner [commission] has the sole and exclusive authority to

 8-3     grant, deny, renew, revoke, suspend, amend, or withdraw licenses

 8-4     for the recovery and processing of source material or [, including

 8-5     the] disposal of by-product material under [pursuant to] Subchapter

 8-6     G.

 8-7           SECTION 13.  Section 401.413, Health and Safety Code, is

 8-8     amended to read as follows:

 8-9           Sec. 401.413.  COMMISSION DISPOSAL LICENSE REQUIRED.  A

8-10     person required by another section of this chapter to obtain a

8-11     license for the disposal of a radioactive substance is required to

8-12     obtain the license from the commission and not from the department.

8-13     This section does not apply to a person required to obtain a

8-14     license for recovery or processing of source material or for

8-15     recovery, processing, or disposal of by-product material as defined

8-16     by Section 401.003(3)(B).

8-17           SECTION 14.  (a)  On the earlier of 30 days after the

8-18     effective date of this Act or September 1, 1997, the following

8-19     rights, powers, duties, obligations, functions, activities,

8-20     property, and programs are transferred to the Texas Department of

8-21     Health:

8-22                 (1)  all of the rights, powers, duties, obligations,

8-23     functions, and activities:

8-24                       (A)  that Chapter 401, Health and Safety Code,

8-25     assigns to the Texas Natural Resource Conservation Commission or to

8-26     the commission's officers or employees; and

8-27                       (B)  that are related to the licensing and

 9-1     regulation of:

 9-2                             (i)  radioactive source material recovery

 9-3     and processing, including recovery, processing, and disposal of

 9-4     by-product material as defined by Section 401.003(3)(B), Health and

 9-5     Safety Code; and

 9-6                             (ii)  the long-term care of decommissioned

 9-7     sites for the disposal of by-product material as defined by Section

 9-8     401.003(3)(B), Health and Safety Code;

 9-9                 (2)  all equipment, information, documents, facilities,

9-10     and other property of the Texas Natural Resource Conservation

9-11     Commission pertaining to the licensing and regulation of:

9-12                       (A)  radioactive source material recovery and

9-13     processing, including recovery, processing, or disposal of

9-14     by-product material as defined by Section 401.003(3)(B), Health and

9-15     Safety Code; or

9-16                       (B)  the long-term care of decommissioned sites

9-17     for the disposal of by-product material as defined by Section

9-18     401.003(3)(B), Health and Safety Code;

9-19                 (3)  except as provided by Section 15 of this Act, all

9-20     appropriations for the biennium that begins September 1, 1997, made

9-21     to the Texas Natural Resource Conservation Commission for

9-22     activities related to licensing and regulation of:

9-23                       (A)  radioactive source material recovery and

9-24     processing, including recovery, processing, or disposal of

9-25     by-product material as defined by Section 401.003(3)(B), Health and

9-26     Safety Code; or

9-27                       (B)  the long-term care of decommissioned sites

 10-1    for the disposal of by-product material as defined by Section

 10-2    401.003(3)(B), Health and Safety Code; and

 10-3                (4)  the unexpended and unobligated balance of the

 10-4    appropriations to the Texas Natural Resource Conservation

 10-5    Commission for the biennium beginning September 1, 1995, for

 10-6    activities described by Subdivision (3) of this subsection.

 10-7          (b)  Appropriations transferred under Subsection (a)(4) are

 10-8    transferred for the remainder of the biennium.

 10-9          (c)  The Texas Department of Health may not charge a fee for

10-10    an application pending before the commission on the date the

10-11    transfer provided by Subsection (a) occurs.

10-12          (d)  The Texas Department of Health is the successor to the

10-13    Texas Natural Resource Conservation Commission for the

10-14    administration and enforcement of laws related to licensing and

10-15    regulation of radioactive source material recovery and processing,

10-16    including  recovery, processing, or disposal of by-product material

10-17    as defined by Section 401.003(3)(B), Health and Safety Code, and

10-18    the licensing and regulation of long-term care of decommissioned

10-19    sites for the disposal of by-product material as defined by Section

10-20    401.003(3)(B), Health and Safety Code.  The Texas Department of

10-21    Health shall carry out those duties, responsibilities, functions,

10-22    and activities as provided by law, including Acts of the 75th

10-23    Legislature.

10-24          (e)  The transfer of rights, powers, duties, obligations,

10-25    functions, activities, property, and programs from the Texas

10-26    Natural Resource Conservation Commission to the Texas Department of

10-27    Health made by this Act does not affect or impair any act done or

 11-1    obligation, right, license, permit, requirement, or penalty accrued

 11-2    or existing under the former law, and that law remains in effect

 11-3    for the purposes of any action concerning such an act, obligation,

 11-4    right, license, permit, requirement, or penalty.  The Texas

 11-5    Department of  Health shall continue a proceeding of the Texas

 11-6    Natural Resource Conservation Commission related to a program,

 11-7    responsibility, duty, or function transferred by this Act,

 11-8    including processing an application for a license or other

 11-9    authorization or enforcing the requirements of Chapter 401, Health

11-10    and Safety Code, or a rule adopted under that chapter. Rules of the

11-11    Texas Natural Resource Conservation Commission related to a right,

11-12    power, duty, obligation, function, activity, or program transferred

11-13    to the Texas Department of Health by this Act are enforceable as

11-14    rules of the department until the department adopts other rules.

11-15    The Texas Department of Health shall make every effort to

11-16    consolidate and streamline the rules affecting a right, power,

11-17    duty, obligation, function, activity, or program transferred by

11-18    this Act to give concise and clear notice to the regulated

11-19    community of regulatory requirements.

11-20          (f)  The Texas Department of Health shall provide an

11-21    opportunity for employees of the Texas Natural Resource

11-22    Conservation Commission who have performed duties for the

11-23    commission related to a right, power, duty, obligation, function,

11-24    activity, or program transferred by this Act to  request to

11-25    transfer to the department's program.  In making employment

11-26    decisions, the Texas Department of Health shall ensure that federal

11-27    requirements for engineering expertise are met by departmental

 12-1    employees and shall consider the value of continuity in personnel

 12-2    staffing the relevant programs.  The Texas Department of Health

 12-3    shall consider employing a person to ensure that ecological issues

 12-4    receive proper attention.

 12-5          (g)  The Texas Natural Resource Conservation Commission and

 12-6    the Texas Department of Health by interagency agreement or by

 12-7    contract shall cooperate in preventing any delay that might be

 12-8    caused by the transfer of property or personnel or a right, power,

 12-9    duty, obligation, function, activity, or program made by this Act

12-10    in the closure certification program.

12-11          SECTION 15.  Notwithstanding any other provision of this Act,

12-12    the Texas Natural Resource Conservation Commission shall continue

12-13    all activities related to the groundwater cleanup cooperative

12-14    agreement with the United States Department of Energy for the mill

12-15    tailing site at Falls City.  All appropriations made for the

12-16    biennium beginning September 1, 1997, that pertain to the

12-17    commission's activities related to the mill tailing site at Falls

12-18    City remain appropriations to the commission and are not

12-19    transferred by Section 14 of this Act.

12-20          SECTION 16.  The transfers made by this Act do not affect:

12-21                (1)  the Texas Natural Resource Conservation

12-22    Commission's jurisdiction over the Low-Level Radioactive Waste

12-23    Disposal Authority provided by Chapters 401 and 402, Health and

12-24    Safety Code;

12-25                (2)  the United States Department of Transportation's

12-26    jurisdiction over or regulation of the shipping of low specific

12-27    activity material or uranium; or

 13-1                (3)  any matter that is the subject of litigation

 13-2    pending on the effective date of this Act.

 13-3          SECTION 17.  In performing, exercising, or conducting a

 13-4    right, power, duty, obligation, function, activity, or program

 13-5    transferred by this Act, the Texas Department of Health shall, to

 13-6    the extent feasible, apply standards of the United States Nuclear

 13-7    Regulatory Commission until the department adopts relevant

 13-8    standards.

 13-9          SECTION 18.  The Texas Department of Health shall ensure that

13-10    the fees the department assesses under Chapter 401, Health and

13-11    Safety Code, as amended by this Act, are sufficient to pay the

13-12    department's costs incurred under that chapter in conducting the

13-13    department's licensing and regulatory activities and issuing

13-14    closure certifications.  If the department finds that the fees

13-15    adopted by the Texas Natural Resource Conservation Commission

13-16    generate more revenue than necessary to pay those costs, the

13-17    department shall refund to each person who paid a fee that was

13-18    increased during the 12 months preceding the effective date of this

13-19    Act an amount that represents that person's share of the excess fee

13-20    revenue.

13-21          SECTION 19.  The importance of this legislation and the

13-22    crowded condition of the calendars in both houses create an

13-23    emergency and an imperative public necessity that the

13-24    constitutional rule requiring bills to be read on three several

13-25    days in each house be suspended, and this rule is hereby suspended,

13-26    and that this Act take effect and be in force from and after its

13-27    passage, and it is so enacted.