By:  Lucio                                             S.B. No. 866
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the transfer of permits, registrations, or other
 1-2     authorizations issued by the Texas Natural Resource Conservation
 1-3     Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 5.001, Water Code, is amended by adding
 1-6     Subdivisions (4) and (5) to read as follows:
 1-7                 (4)  "Change of ownership" includes:
 1-8                       (A)  a merger;
 1-9                       (B)  a stock transfer that results in a
1-10     controlling interest in an entity that is the subject of a permit,
1-11     registration, or other authorization issued by the commission;
1-12                       (C)  an asset purchase that results in a change
1-13     in the operational control of an entity that is the subject of a
1-14     permit, registration, or other authorization issued by the
1-15     commission; or
1-16                       (D)  a change in federal tax identification
1-17     number.
1-18                 (5)  "Transfer" includes:
1-19                       (A)  the assignment of a permit from one person
1-20     to another; or
1-21                       (B)  a change of ownership or control.
1-22           SECTION 2.  Subchapter F, Chapter 5, Water Code, is amended
1-23     by adding Section 5.239 to read as follows:
 2-1           Sec. 5.239.  TRANSFER OF PERMIT.  (a)  Except as provided by
 2-2     Subsection (b), a permit may be transferred if the person seeking
 2-3     the permit transfer:
 2-4                 (1)  complies with commission rules relating to permit
 2-5     transfer;
 2-6                 (2)  gives prior written notice to the commission;
 2-7                 (3)  obtains approval from the commission; and
 2-8                 (4)  obtains prior written approval from the commission
 2-9     if:
2-10                       (A)  the permit is a permit issued by the
2-11     commission under Chapter 27 of this code or Chapter 361 or 401,
2-12     Health and Safety Code; or
2-13                       (B)  the transferee does not hold another permit
2-14     from the commission.
2-15           (b)  A permit issued under Chapter 11 may be transferred by
2-16     the commission according to that chapter and commission rules
2-17     adopted under that chapter.
2-18           (c)  The commission shall adopt rules to implement this
2-19     section.
2-20           (d)  In this section, "permit" includes a registration or
2-21     other authorization issued by the commission.
2-22           SECTION 3.  Subsection (c), Section 361.086, Health and
2-23     Safety Code, is amended to read as follows:
2-24           (c)  A permit may [not] be transferred as provided by Section
2-25     5.239, Water Code [without first giving written notice to and
 3-1     receiving written approval of the agency that issued the permit].
 3-2           SECTION 4.  Subsection (h), Section 361.112, Health and
 3-3     Safety Code, is amended to read as follows:
 3-4           (h)  The commission may amend, extend, [transfer,] or renew a
 3-5     permit issued under this section as provided by this chapter and
 3-6     commission rule.  A permit may be transferred as provided by
 3-7     Section 5.239, Water Code.
 3-8           SECTION 5.  Subchapter B, Chapter 371, Health and Safety
 3-9     Code, is amended by adding Section 371.0261 to read as follows:
3-10           Sec. 371.0261.  TRANSFER OF REGISTRATION.  A registration may
3-11     be transferred as provided by Section 5.239, Water Code.
3-12           SECTION 6.  Section 382.051, Health and Safety Code, is
3-13     amended to read as follows:
3-14           Sec. 382.051.  PERMITTING AUTHORITY OF COMMISSION;  RULES;
3-15     TRANSFER OF PERMIT.  (a)  The commission may issue a permit:
3-16                 (1)  to construct a new facility or modify an existing
3-17     facility that may emit air contaminants; or
3-18                 (2)  to operate a federal source.
3-19           (b)  To assist in fulfilling its authorization provided by
3-20     Subsection (a), the commission may issue:
3-21                 (1)  special permits for certain facilities;
3-22                 (2)  a general permit developed by rule for numerous
3-23     similar sources subject to Section 382.054;
3-24                 (3)  a standard permit developed by rule for numerous
3-25     similar facilities subject to Section 382.0518;
 4-1                 (4)  a single federal operating permit or
 4-2     preconstruction permit for multiple federal sources or facilities
 4-3     located at the same site; or
 4-4                 (5)  other permits as necessary.
 4-5           (c)  The commission may issue a federal operating permit for
 4-6     a federal source in violation only if the operating permit
 4-7     incorporates a compliance plan for the federal source as a
 4-8     condition of the permit.
 4-9           (d)  The commission shall adopt rules as necessary to comply
4-10     with changes in federal law or regulations applicable to permits
4-11     issued under this chapter.
4-12           (e)  A permit may be transferred as provided by Section
4-13     5.239, Water Code.
4-14           SECTION 7.  Section 401.110, Health and Safety Code, is
4-15     amended to read as follows:
4-16           Sec. 401.110. DETERMINATION ON LICENSE.  In making a
4-17     determination whether to grant, deny, amend, revoke, suspend, [or]
4-18     restrict, or assign a license or registration, the department or
4-19     commission may consider those aspects of an applicant's or license
4-20     holder's background that bear materially on the ability to fulfill
4-21     the obligations of licensure, including technical competence and
4-22     the applicant's or license holder's record in areas involving
4-23     radiation.
4-24           SECTION 8.  Section 401.119, Health and Safety Code, is
4-25     amended to read as follows:
 5-1           Sec. 401.119.  LICENSE OR REGISTRATION TRANSFER.  A license
 5-2     or registration issued by the department or commission may be
 5-3     assigned only to a person qualified under rules of the issuing
 5-4     agency.
 5-5           SECTION 9.  Section 13.251, Water Code, is amended to read as
 5-6     follows:
 5-7           Sec. 13.251.  SALE, ASSIGNMENT, OR LEASE OF CERTIFICATE.
 5-8     Except as provided by Section 13.255 of this code, a utility or a
 5-9     water supply or sewer service corporation may not sell, assign, or
5-10     lease a certificate of public convenience and necessity or any
5-11     right obtained under a certificate unless the commission has
5-12     determined that the purchaser, assignee, or lessee is capable of
5-13     rendering adequate and continuous service to every consumer within
5-14     the certified area, after considering the factors under Section
5-15     13.246(c) of this code.  The sale, assignment, or lease shall be in
5-16     accordance with Section 5.239 of this code and on the conditions
5-17     prescribed by the commission.
5-18           SECTION 10.  This Act takes effect September 1, 1997, and
5-19     applies only to an application to transfer a permit, registration,
5-20     or other authorization issued by the Texas Natural Resource
5-21     Conservation Commission that is submitted to the commission on or
5-22     after that date.
5-23           SECTION 11.  The importance of this legislation and the
5-24     crowded condition of the calendars in both houses create an
5-25     emergency and an imperative public necessity that the
 6-1     constitutional rule requiring bills to be read on three several
 6-2     days in each house be suspended, and this rule is hereby suspended.