By Chisum                                             H.B. No. 3462

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                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.  Section 401.104(b), Health and Safety Code, is

 1-7     amended to read as follows:

 1-8           (b)  The commission by rule shall provide for licensing for

 1-9     the disposal of radioactive material except by-product material

1-10     defined by Section 401.003(3)(B).  The department by rule shall

1-11     provide for licensing for the disposal of by-product material

1-12     defined by Section 401.003(3)(B).

1-13           SECTION 2.  Section 401.262, Health and Safety Code, is

1-14     amended to read as follows:

1-15           Sec. 401.262.  MANAGEMENT OF CERTAIN BY-PRODUCT MATERIAL.

1-16     The department [commission] has sole and exclusive authority to

1-17     assure that sites are closed out and by-product material is managed

1-18     and disposed of in compliance with:

1-19                 (1)  the federal commission's applicable standards; and

1-20                 (2)  closure dose rates the federal commission has

1-21     determined to be protective of human health and safety and the

1-22     environment.

 2-1           SECTION 3.  Section 401.2625, Health and Safety Code, is

 2-2     amended to read as follows:

 2-3           Sec. 401.2625.  LICENSING AUTHORITY.  The department

 2-4     [commission] has sole and exclusive authority to grant, deny,

 2-5     renew, revoke, suspend, amend, or withdraw licenses for source

 2-6     material recovery and processing or [, including the] disposal of

 2-7     by-product material.

 2-8           SECTION 4.  Sections 401.263(a), (c), (d), (e), and (f),

 2-9     Health and Safety Code, are amended to read as follows:

2-10           (a)  If the board [commission] is considering the issuance,

2-11     renewal, or amendment of a license to process materials that

2-12     produce by-product materials and determines that the licensed

2-13     activity will have a significant impact on the human environment,

2-14     the department [commission] shall prepare or have prepared a

2-15     written environmental analysis.

2-16           (c)  The department [commission] shall give notice of the

2-17     analysis as provided by board [agency] rule and shall make the

2-18     analysis available to the public for written comment not later than

2-19     the 31st day before the date of the hearing on the license.

2-20           (d)  After notice is given, the department [commission] shall

2-21     provide an opportunity for written comments by persons affected.

2-22           (e)  The analysis shall be included as part of the record of

2-23     the department's [commission's] proceedings.

2-24           (f)  The board by rule [commission] shall prohibit major

2-25     construction with respect to an activity that is to be licensed

2-26     until the requirements of Subsections (a), (b), (c), and (e) are

2-27     completed.

 3-1           SECTION 5.  Sections 401.264(a), (c), and (d), Health and

 3-2     Safety Code, are amended to read as follows:

 3-3           (a)  The board [commission] on its own motion may or on the

 3-4     written request of a person affected shall provide an opportunity

 3-5     for a public hearing on an application over which the department

 3-6     [commission] has jurisdiction to determine whether to issue, renew,

 3-7     or amend a license to process materials that produce by-product

 3-8     materials in the manner provided by Chapter 2001, Government Code,

 3-9     and permit appearances with or without counsel and the examination

3-10     and cross-examination of witnesses under oath.

3-11           (c)  The department [commission] shall make a record of the

3-12     proceedings and provide a transcript of the hearing on request of,

3-13     and payment for, the transcript or provision of a sufficient

3-14     deposit to assure payment by any person requesting the transcript.

3-15           (d)  The department [commission] shall provide an opportunity

3-16     to obtain a written determination of action to be taken.  The

3-17     determination must be based on evidence presented to the department

3-18     [commission] and include findings.  The written determination is

3-19     available to the public.

3-20           SECTION 6.  Section 401.265, Health and Safety Code, is

3-21     amended to read as follows:

3-22           Sec. 401.265.  CONDITIONS OF CERTAIN BY-PRODUCT MATERIAL

3-23     LICENSES.  The board [commission] shall prescribe conditions in a

3-24     radioactive material license issued, renewed, or amended for an

3-25     activity that results in production of by-product material to

3-26     minimize or, if possible, eliminate the need for long-term

3-27     maintenance and monitoring before the termination of the license,

 4-1     including conditions that:

 4-2                 (1)  the license holder will comply with the applicable

 4-3     decontamination, decommissioning, reclamation, and disposal

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

 4-5     are equivalent to or compatible with [more stringent than] the

 4-6     federal commission's standards for sites at which those ores were

 4-7     processed and at which the by-product material is deposited; and

 4-8                 (2)  the ownership of a disposal site, other than a

 4-9     disposal well covered by a permit issued under Chapter 27, Water

4-10     Code, and the by-product material resulting from the licensed

4-11     activity are transferred, subject to Sections 401.266-401.269, to:

4-12                       (A)  the state; or

4-13                       (B)  the federal government if the state declines

4-14     to acquire the site, the by-product material, or both the site and

4-15     the by-product material.

4-16           SECTION 7.  Section 401.266(a), Health and Safety Code, is

4-17     amended to read as follows:

4-18           (a)  The board [commission] by rule or [by] order may require

4-19     that before a license covering land used for the disposal of

4-20     by-product material is terminated, the land, including any affected

4-21     interests in the land, must be transferred to the federal

4-22     government or to the state unless:

4-23                 (1)  the federal commission determines before the

4-24     license terminates that the transfer of title to the land and the

4-25     by-product material is unnecessary to protect the public health,

4-26     safety, or welfare or to minimize danger to life or property;  or

4-27                 (2)  the land is held in trust by the federal

 5-1     government for an Indian tribe, is owned by an Indian tribe subject

 5-2     to a restriction against alienation imposed by the federal

 5-3     government, is owned by the federal government, or is owned by the

 5-4     state.

 5-5           SECTION 8.  Section 401.267, Health and Safety Code, is

 5-6     amended to read as follows:

 5-7           Sec. 401.267.  ACQUISITION OF CERTAIN BY-PRODUCT MATERIALS

 5-8     AND SITES.  The department [commission] may acquire by-product

 5-9     material and fee simple title in land, affected mineral rights, and

5-10     buildings at which that by-product material is disposed of and

5-11     abandoned so that the by-product material and property can be

5-12     managed in a manner consistent with protecting public health,

5-13     safety, and the environment.

5-14           SECTION 9.  Section 401.269, Health and Safety Code, is

5-15     amended to read as follows:

5-16           Sec. 401.269.  MONITORING, MAINTENANCE, AND EMERGENCY

5-17     MEASURES.  (a)  The department [commission] may undertake

5-18     monitoring, maintenance, and emergency measures in connection with

5-19     by-product material and property for which it has assumed custody

5-20     under Section 401.267 that are necessary to protect the public

5-21     health and safety and the environment.

5-22           (b)  The department [commission] shall maintain the

5-23     by-product material and property transferred to it in a manner that

5-24     will protect the public health and safety and the environment.

5-25           SECTION 10.  Sections 401.270(a), (b), (e), and (f), Health

5-26     and Safety Code, are amended to read as follows:

5-27           (a)  If the department [commission] finds that by-product

 6-1     material or the operation by which that by-product material is

 6-2     derived threatens the public health and safety or the environment,

 6-3     the board [commission] by order may require any action, including a

 6-4     corrective measure, that is necessary to correct or remove the

 6-5     threat.

 6-6           (b)  The board [commission] may issue an emergency order to a

 6-7     person responsible for an activity, including a past activity,

 6-8     concerning the recovery or processing of source material or the

 6-9     disposal of by-product material if it appears that there is an

6-10     actual or threatened release of source material or by-product

6-11     material that presents an imminent and substantial danger to the

6-12     public health and safety or the environment, regardless of whether

6-13     the activity was lawful at the time.  The emergency order may be

6-14     issued without notice or hearing.

6-15           (e)  The department [commission] shall use the security

6-16     provided by the license holder to pay the costs of actions that are

6-17     taken or that are to be taken under this section.  The department

6-18     [commission] shall send to the comptroller a copy of its order

6-19     together with necessary written requests authorizing the

6-20     comptroller to:

6-21                 (1)  enforce security supplied by the licensee;

6-22                 (2)  convert an amount of security into cash, as

6-23     necessary; and

6-24                 (3)  disburse from the security in the fund the amount

6-25     necessary to pay the costs.

6-26           (f)  If an [the] order issued by the board under [commission

6-27     pursuant to] this section is adopted without notice or hearing, the

 7-1     order shall set a time, at least 10 but not more than 30 days

 7-2     following the date of issuance of the emergency order, and a place

 7-3     for a hearing to be held in accordance with the rules of the board

 7-4     [commission].  As a result of this hearing, the board [commission]

 7-5     shall decide whether to affirm, modify, or set aside the emergency

 7-6     order.  All provisions of the emergency order shall remain in force

 7-7     and effect during the pendency of the hearing, unless otherwise

 7-8     altered by the board [commission].

 7-9           SECTION 11.  Sections 401.412(a) and (b), Health and Safety

7-10     Code, are amended to read as follows:

7-11           (a)  Notwithstanding any other provision of this chapter and

7-12     subject to Section 401.102, the commission has sole and exclusive

7-13     authority to directly regulate and to grant, deny, renew, revoke,

7-14     suspend, amend, or withdraw licenses for the disposal of

7-15     radioactive substances.  In this subsection, "radioactive

7-16     substance" does not include by-product material as defined by

7-17     Section 401.003(3)(B).

7-18           (b)  Notwithstanding any other provision of this chapter, the

7-19     board [commission] has the sole and exclusive authority to grant,

7-20     deny, renew, revoke, suspend, amend, or withdraw licenses for the

7-21     recovery and processing of source material or [, including the]

7-22     disposal of by-product material under [pursuant to] Subchapter G.

7-23           SECTION 12.  Section 401.413, Health and Safety Code, is

7-24     amended to read as follows:

7-25           Sec. 401.413.  COMMISSION DISPOSAL LICENSE REQUIRED.  A

7-26     person required by another section of this chapter to obtain a

7-27     license for the disposal of a radioactive substance is required to

 8-1     obtain the license from the commission and not from the department.

 8-2     This section does not apply to a person required to obtain a

 8-3     license for recovery, processing, or disposal of source material or

 8-4     by-product material.

 8-5           SECTION 13.  (a)  One month after the effective date of this

 8-6     act, but in no case later than September 1, 1997, the following

 8-7     rights, powers, duties, obligations, functions, activities,

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

 8-9     Health:

8-10                 (1)  all of the rights, powers, duties, obligations,

8-11     functions, and activities:

8-12                       (A)  that Chapter 401, Health and Safety Code,

8-13     assigns to the Texas Natural Resource Conservation Commission or to

8-14     the commission's officers or employees; and

8-15                       (B)  that are related to the licensing and

8-16     regulation of:

8-17                             (i)  radioactive source material recovery

8-18     and processing, including recovery, processing, and disposal of

8-19     by-product material as defined by Section 401.003(3)(B), Health and

8-20     Safety Code; and

8-21                             (ii)  the long-term care of decommissioned

8-22     sites;

8-23                 (2)  all equipment, information, documents, facilities,

8-24     and other property of the Texas Natural Resource Conservation

8-25     Commission pertaining to the licensing and regulation of:

8-26                       (A)  radioactive source material recovery and

8-27     processing, including recovery, processing,  or disposal of

 9-1     by-product material as defined by Section 401.003(3)(B); or

 9-2                       (B)  the long-term care of decommissioned sites;

 9-3     and

 9-4                 (3)  all appropriations to the Texas Natural Resource

 9-5     Conservation Commission for activities related to licensing and

 9-6     regulation of:

 9-7                       (A)  radioactive source material recovery and

 9-8     processing, including recovery, processing, or disposal of

 9-9     by-product material as defined by Section 401.003(3)(B); or

9-10                       (B)  the long-term care of decommissioned sites.

9-11           (b)  Money collected by the Texas Natural Resource

9-12     Conservation Commission for fees related to applications pending

9-13     before the commission at the time the program transfers are

9-14     transferred to the Texas Department of Health.  The application

9-15     fees may not be assessed again for the same applications.

9-16           (c)  The Texas Department of Health is the successor to Texas

9-17     Natural Resource Conservation Commission for the administration and

9-18     enforcement of laws related to licensing and regulation of

9-19     radioactive source material recovery and processing, including

9-20     recovery, processing, or disposal of by-product material as defined

9-21     by Section 401.003(3)(B), and the licensing and regulation of

9-22     long-term care of decommissioned sites.  The Texas Department of

9-23     Health shall carry out those duties, responsibilities, functions,

9-24     and activities as provided by law, including Acts of the 75th

9-25     Legislature.

9-26           (d)  The transfer of rights, powers, duties, obligations,

9-27     functions, activities, property, and programs  from the Texas

 10-1    Natural Resource Conservation Commission to the Texas Department of

 10-2    Health made by this Act does not affect or impair any act done or

 10-3    obligation, right, license, permit, requirement, or penalty accrued

 10-4    or existing under the former law, and that law remains in effect

 10-5    for the purposes of any action concerning such an act, obligation,

 10-6    right, license, permit, requirement, or penalty.  The Texas

 10-7    Department of  Health shall continue a proceeding of the Texas

 10-8    Natural Resource Conservation Commission related to a program,

 10-9    responsibility, duty, or function transferred by this Act,

10-10    including processing an application for a license or other

10-11    authorization or enforcing the requirements of Chapter 401, Health

10-12    and Safety Code, or a rule adopted under that chapter.

10-13          (e)  The Texas Department of Health shall provide an

10-14    opportunity for employees of the Texas Natural Resource

10-15    Conservation Commission who have performed duties for the

10-16    commission related to a right, power, duty, obligation, function,

10-17    activity, or program transferred by this Act to  apply for

10-18    employment with the department.  In making employment decisions,

10-19    the Texas Department of Health shall ensure that federal

10-20    requirements for engineering expertise are met by departmental

10-21    employees and shall consider the value of continuity in personnel

10-22    staffing the relevant programs.  The Texas Department of Health

10-23    shall consider employing a person to ensure that ecological issues

10-24    receive proper attention.

10-25          (f)  The Texas Natural Resource Conservation Commission and

10-26    the Texas Department of Health by interagency agreement or by

10-27    contract shall cooperate in preventing any delay that might be

 11-1    caused by the transfer of property or personnel or a right, power,

 11-2    duty, obligation, function, activity, or program made by this Act

 11-3    in the licensing and closure certification program.

 11-4          SECTION 14.  The transfers made by this Act do not affect:

 11-5                (1)  the Texas Natural Resource Conservation

 11-6    Commission's jurisdiction over the Low-Level Radioactive Waste

 11-7    Disposal Authority provided by Chapter 402, Health and Safety Code;

 11-8                (2)  the United States Department of Transportation's

 11-9    jurisdiction over or regulation of the shipping of low specific

11-10    activity material or uranium; or

11-11                (3)  any matter that is the subject of litigation

11-12    pending on the effective date of this Act.

11-13          SECTION 15.  In performing, exercising, or conducting a

11-14    right, power, duty, obligation, function, activity, or program

11-15    transferred by this Act, the Texas Department of Health shall, to

11-16    the extent feasible, apply standards of the United States Nuclear

11-17    Regulatory Commission until the department adopts relevant

11-18    standards.

11-19          SECTION 16.  The Department of Health shall reevaluate the

11-20    fees assessed under the program, ensuring that the fees are

11-21    sufficient to pay the costs of the department in conducting its

11-22    licensing and regulatory activities and closure certifications.  If

11-23    the department finds that current fees adopted by the Texas Natural

11-24    Resource Conservation Commission are higher than necessary to

11-25    operate the program, the department shall provide that any fees

11-26    newly increased in the past year will be refunded to the payor as

11-27    appropriate.

 12-1          SECTION 17.  The importance of this legislation and the

 12-2    crowded condition of the calendars in both houses create an

 12-3    emergency and an imperative public necessity that the

 12-4    constitutional rule requiring bills to be read on three several

 12-5    days in each house be suspended, and this rule is hereby suspended,

 12-6    and that this Act take effect and be in force from and after its

 12-7    passage, and it is so enacted.