1-1     By:  Lucio                                             S.B. No. 866

 1-2           (In the Senate - Filed February 28, 1997; March 5, 1997, read

 1-3     first time and referred to Committee on Natural Resources;

 1-4     April 29, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 9, Nays 0; April 29, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 866                    By:  Ogden

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the transfer of permits, registrations, or other

1-11     authorizations issued by the Texas Natural Resource Conservation

1-12     Commission.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Section 5.001, Water Code, is amended by adding

1-15     Subdivisions (4) and (5) to read as follows:

1-16                 (4)  "Change of ownership" includes:

1-17                       (A)  a merger;

1-18                       (B)  a stock transfer that results in a

1-19     controlling interest in an entity that is the subject of a permit,

1-20     registration, or other authorization issued by the commission;

1-21                       (C)  an asset purchase that results in a change

1-22     in the operational control of an entity that is the subject of a

1-23     permit, registration, or other authorization issued by the

1-24     commission; or

1-25                       (D)  a change in federal tax identification

1-26     number.

1-27                 (5)  "Transfer" includes:

1-28                       (A)  the assignment of a permit from one person

1-29     to another; or

1-30                       (B)  a change of ownership or control.

1-31           SECTION 2.  Subchapter F, Chapter 5, Water Code, is amended

1-32     by adding Section 5.239 to read as follows:

1-33           Sec. 5.239.  TRANSFER OF PERMIT.  (a)  Except as provided by

1-34     Subsection (b), a permit may be transferred if the person seeking

1-35     the permit transfer:

1-36                 (1)  complies with commission rules relating to permit

1-37     transfer;

1-38                 (2)  gives prior written notice to the commission;

1-39                 (3)  obtains approval from the commission; and

1-40                 (4)  obtains prior written approval from the commission

1-41     if:

1-42                       (A)  the permit is a permit issued by the

1-43     commission under Chapter 27 of this code or Chapter 361 or 401,

1-44     Health and Safety Code; or

1-45                       (B)  the transferee does not hold another permit

1-46     from the commission.

1-47           (b)  A permit issued under Chapter 11 may be transferred by

1-48     the commission according to that chapter and commission rules

1-49     adopted under that chapter.

1-50           (c)  The commission shall adopt rules to implement this

1-51     section.

1-52           (d)  In this section, "permit" includes a registration or

1-53     other authorization issued by the commission.

1-54           SECTION 3.  Subsection (c), Section 361.086, Health and

1-55     Safety Code, is amended to read as follows:

1-56           (c)  A permit may [not] be transferred as provided by Section

1-57     5.239, Water Code [without first giving written notice to and

1-58     receiving written approval of the agency that issued the permit].

1-59           SECTION 4.  Subsection (h), Section 361.112, Health and

1-60     Safety Code, is amended to read as follows:

1-61           (h)  The commission may amend, extend, [transfer,] or renew a

1-62     permit issued under this section as provided by this chapter and

1-63     commission rule.  A permit may be transferred as provided by

1-64     Section 5.239, Water Code.

 2-1           SECTION 5.  Subchapter B, Chapter 371, Health and Safety

 2-2     Code, is amended by adding Section 371.0261 to read as follows:

 2-3           Sec. 371.0261.  TRANSFER OF REGISTRATION.  A registration may

 2-4     be transferred as provided by Section 5.239, Water Code.

 2-5           SECTION 6.  Section 382.051, Health and Safety Code, is

 2-6     amended to read as follows:

 2-7           Sec. 382.051.  PERMITTING AUTHORITY OF COMMISSION;  RULES;

 2-8     TRANSFER OF PERMIT.  (a)  The commission may issue a permit:

 2-9                 (1)  to construct a new facility or modify an existing

2-10     facility that may emit air contaminants; or

2-11                 (2)  to operate a federal source.

2-12           (b)  To assist in fulfilling its authorization provided by

2-13     Subsection (a), the commission may issue:

2-14                 (1)  special permits for certain facilities;

2-15                 (2)  a general permit developed by rule for numerous

2-16     similar sources subject to Section 382.054;

2-17                 (3)  a standard permit developed by rule for numerous

2-18     similar facilities subject to Section 382.0518;

2-19                 (4)  a single federal operating permit or

2-20     preconstruction permit for multiple federal sources or facilities

2-21     located at the same site; or

2-22                 (5)  other permits as necessary.

2-23           (c)  The commission may issue a federal operating permit for

2-24     a federal source in violation only if the operating permit

2-25     incorporates a compliance plan for the federal source as a

2-26     condition of the permit.

2-27           (d)  The commission shall adopt rules as necessary to comply

2-28     with changes in federal law or regulations applicable to permits

2-29     issued under this chapter.

2-30           (e)  A permit may be transferred as provided by Section

2-31     5.239, Water Code.

2-32           SECTION 7.  Section 401.110, Health and Safety Code, is

2-33     amended to read as follows:

2-34           Sec. 401.110. DETERMINATION ON LICENSE.  In making a

2-35     determination whether to grant, deny, amend, revoke, suspend, [or]

2-36     restrict, or assign a license or registration, the department or

2-37     commission may consider those aspects of an applicant's or license

2-38     holder's background that bear materially on the ability to fulfill

2-39     the obligations of licensure, including technical competence and

2-40     the applicant's or license holder's record in areas involving

2-41     radiation.

2-42           SECTION 8.  Section 401.119, Health and Safety Code, is

2-43     amended to read as follows:

2-44           Sec. 401.119.  LICENSE OR REGISTRATION TRANSFER.  A license

2-45     or registration issued by the department or commission may be

2-46     assigned only to a person qualified under rules of the issuing

2-47     agency.

2-48           SECTION 9.  Section 13.251, Water Code, is amended to read as

2-49     follows:

2-50           Sec. 13.251.  SALE, ASSIGNMENT, OR LEASE OF CERTIFICATE.

2-51     Except as provided by Section 13.255 of this code, a utility or a

2-52     water supply or sewer service corporation may not sell, assign, or

2-53     lease a certificate of public convenience and necessity or any

2-54     right obtained under a certificate unless the commission has

2-55     determined that the purchaser, assignee, or lessee is capable of

2-56     rendering adequate and continuous service to every consumer within

2-57     the certified area, after considering the factors under Section

2-58     13.246(c) of this code.  The sale, assignment, or lease shall be in

2-59     accordance with Section 5.239 of this code and on the conditions

2-60     prescribed by the commission.

2-61           SECTION 10.  This Act takes effect September 1, 1997, and

2-62     applies only to an application to transfer a permit, registration,

2-63     or other authorization issued by the Texas Natural Resource

2-64     Conservation Commission that is submitted to the commission on or

2-65     after that date.

2-66           SECTION 11.  The importance of this legislation and the

2-67     crowded condition of the calendars in both houses create an

2-68     emergency and an imperative public necessity that the

2-69     constitutional rule requiring bills to be read on three several

 3-1     days in each house be suspended, and this rule is hereby suspended.

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