By Lucio S.B. No. 866
75R3439 MI-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the transfer of permits, registrations, or other
1-3 authorizations issued by the Texas Natural Resource Conservation
1-4 Commission.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 5.001, Water Code, is amended by adding
1-7 Subdivisions (4) and (5) to read as follows:
1-8 (4) "Change of ownership" includes:
1-9 (A) a merger;
1-10 (B) a stock transfer that results in a
1-11 controlling interest in an entity that is the subject of a permit,
1-12 registration, or other authorization issued by the commission;
1-13 (C) an asset purchase that results in a change
1-14 in the operational control of an entity that is the subject of a
1-15 permit, registration, or other authorization issued by the
1-16 commission; or
1-17 (D) a change in federal tax identification
1-18 number.
1-19 (5) "Transfer" includes:
1-20 (A) the assignment of a permit from one person
1-21 to another;
1-22 (B) a change of ownership or control; or
1-23 (C) a stock transfer.
1-24 SECTION 2. Subchapter F, Chapter 5, Water Code, is amended
2-1 by adding Section 5.238 to read as follows:
2-2 Sec. 5.238. TRANSFER OF PERMIT. (a) Except as provided by
2-3 Subsection (b), a permit may be transferred if the person seeking
2-4 the permit transfer:
2-5 (1) complies with commission rules relating to permit
2-6 transfer;
2-7 (2) gives prior written notice to the commission; and
2-8 (3) obtains prior written approval from the
2-9 commission.
2-10 (b) A permit issued under Chapter 382, Health and Safety
2-11 Code, may be transferred by the commission according to commission
2-12 rule.
2-13 (c) The commission shall adopt rules to implement this
2-14 section.
2-15 (d) In this section, "permit" includes a registration or
2-16 other authorization issued by the commission.
2-17 SECTION 3. Section 361.086(c), Health and Safety Code, is
2-18 amended to read as follows:
2-19 (c) A permit may [not] be transferred as provided by Section
2-20 5.238, Water Code [without first giving written notice to and
2-21 receiving written approval of the agency that issued the permit].
2-22 SECTION 4. Section 361.112(h), Health and Safety Code, is
2-23 amended to read as follows:
2-24 (h) The commission may amend, extend, [transfer,] or renew a
2-25 permit issued under this section as provided by this chapter and
2-26 commission rule. A permit may be transferred as provided by
2-27 Section 5.238, Water Code.
3-1 SECTION 5. Subchapter B, Chapter 371, Health and Safety
3-2 Code, is amended by adding Section 371.0261 to read as follows:
3-3 Sec. 371.0261. TRANSFER OF REGISTRATION. A registration may
3-4 be transferred as provided by Section 5.238, Water Code.
3-5 SECTION 6. Section 382.051, Health and Safety Code, is
3-6 amended to read as follows:
3-7 Sec. 382.051. PERMITTING AUTHORITY OF COMMISSION; RULES;
3-8 TRANSFER OF PERMIT. (a) The commission may issue a permit:
3-9 (1) to construct a new facility or modify an existing
3-10 facility that may emit air contaminants; or
3-11 (2) to operate a federal source.
3-12 (b) To assist in fulfilling its authorization provided by
3-13 Subsection (a), the commission may issue:
3-14 (1) special permits for certain facilities;
3-15 (2) a general permit developed by rule for numerous
3-16 similar sources subject to Section 382.054;
3-17 (3) a standard permit developed by rule for numerous
3-18 similar facilities subject to Section 382.0518;
3-19 (4) a single federal operating permit or
3-20 preconstruction permit for multiple federal sources or facilities
3-21 located at the same site; or
3-22 (5) other permits as necessary.
3-23 (c) The commission may issue a federal operating permit for
3-24 a federal source in violation only if the operating permit
3-25 incorporates a compliance plan for the federal source as a
3-26 condition of the permit.
3-27 (d) The commission shall adopt rules as necessary to comply
4-1 with changes in federal law or regulations applicable to permits
4-2 issued under this chapter.
4-3 (e) A permit may be transferred as provided by Section
4-4 5.238, Water Code.
4-5 SECTION 7. Section 401.110, Health and Safety Code, is
4-6 amended to read as follows:
4-7 Sec. 401.110. DETERMINATION ON LICENSE. In making a
4-8 determination whether to grant, deny, amend, revoke, suspend, [or]
4-9 restrict, or assign a license or registration, the department or
4-10 commission may consider those aspects of an applicant's or license
4-11 holder's background that bear materially on the ability to fulfill
4-12 the obligations of licensure, including technical competence and
4-13 the applicant's or license holder's record in areas involving
4-14 radiation.
4-15 SECTION 8. Section 401.119, Health and Safety Code, is
4-16 amended to read as follows:
4-17 Sec. 401.119. LICENSE OR REGISTRATION TRANSFER. A license
4-18 or registration issued by the department or commission may be
4-19 assigned only to a person qualified under rules of the issuing
4-20 agency.
4-21 SECTION 9. Section 13.187(a), Water Code, is amended to
4-22 read as follows:
4-23 (a) A utility may not make changes in its rates except by
4-24 delivering a statement of intent to each ratepayer and with the
4-25 regulatory authority having original jurisdiction at least 30 days
4-26 before the effective date of the proposed change. The effective
4-27 date of the new rates must be the first day of a billing period,
5-1 and the new rates may not apply to service received before the
5-2 effective date of the new rates. The statement of intent must
5-3 include the information required by the regulatory authority's
5-4 rules. A copy of the statement of intent shall be mailed or
5-5 delivered to the appropriate offices of each affected municipality,
5-6 and to any other affected persons as required by the regulatory
5-7 authority's rules. When the statement of intent is delivered, the
5-8 utility shall file with the regulatory authority an application to
5-9 change rates. The application must include information the
5-10 regulatory authority requires by rule. If the utility fails to
5-11 provide within a reasonable time after the application is filed the
5-12 necessary documentation or other evidence that supports the costs
5-13 and expenses that are shown in the application, the regulatory
5-14 authority may disallow the nonsupported expenses. If the
5-15 application or the statement of intent is not substantially
5-16 complete or does not comply with the regulatory authority's rules,
5-17 it may be rejected and the effective date of the rate change may be
5-18 suspended until a properly completed application is accepted by the
5-19 regulatory authority and a proper statement of intent is provided.
5-20 The commission may also suspend the effective date of any rate
5-21 change if the utility does not have a certificate of public
5-22 convenience and necessity or a completed application for a
5-23 certificate or written notice of [to] transfer of a certificate in
5-24 accordance with Section 5.238 pending before the commission or if
5-25 the utility is delinquent in paying the assessment and any
5-26 applicable penalties or interest required by Section 5.235(n) of
5-27 this code.
6-1 SECTION 10. Section 13.251, Water Code, is amended to read
6-2 as follows:
6-3 Sec. 13.251. SALE, ASSIGNMENT, OR LEASE OF CERTIFICATE.
6-4 Except as provided by Section 13.255 of this code, a utility or a
6-5 water supply or sewer service corporation may not sell, assign, or
6-6 lease a certificate of public convenience and necessity or any
6-7 right obtained under a certificate unless the commission has
6-8 determined that the purchaser, assignee, or lessee is capable of
6-9 rendering adequate and continuous service to every consumer within
6-10 the certified area, after considering the factors under Section
6-11 13.246(c) of this code. The sale, assignment, or lease shall be in
6-12 accordance with Section 5.238 and on the conditions prescribed by
6-13 the commission.
6-14 SECTION 11. Section 13.301(g), Water Code, is amended to
6-15 read as follows:
6-16 (g) A utility or a water supply or sewer service corporation
6-17 that proposes to sell, assign, lease, or rent its facilities shall
6-18 notify the other party to the transaction of the requirements of
6-19 this section and Section 5.238, Water Code, before signing an
6-20 agreement to sell, assign, lease, or rent its facilities.
6-21 SECTION 12. Section 36.352(a), Water Code, is amended to
6-22 read as follows:
6-23 (a) The terms and conditions for consolidation shall
6-24 include:
6-25 (1) adoption of a name for the district;
6-26 (2) the number and apportionment of directors to serve
6-27 on the board;
7-1 (3) the effective date of the consolidation;
7-2 (4) an agreement on finances for the consolidated
7-3 district, including disposition of funds, property, and other
7-4 assets of each district;
7-5 (5) transfer, in accordance with Section 5.238 or any
7-6 other applicable provision of this code, of all permits issued in
7-7 the area that is the subject of the consolidation to the
7-8 consolidated district; and
7-9 (6) an agreement on governing the districts during the
7-10 transition period, including selection of officers.
7-11 SECTION 13. This Act takes effect September 1, 1997, and
7-12 applies only to an application to transfer a permit, registration,
7-13 or other authorization issued by the Texas Natural Resource
7-14 Conservation Commission that is submitted to the commission on or
7-15 after that date.
7-16 SECTION 14. The importance of this legislation and the
7-17 crowded condition of the calendars in both houses create an
7-18 emergency and an imperative public necessity that the
7-19 constitutional rule requiring bills to be read on three several
7-20 days in each house be suspended, and this rule is hereby suspended.