1-1                                   AN ACT
 1-2     relating to public participation in certain environmental
 1-3     permitting procedures of 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 5.115(a), Water Code, is amended to read
 1-7     as follows:
 1-8           (a)  For the purpose of an administrative hearing held by or
 1-9     for the commission involving a contested case, "affected person,"
1-10     or "person affected," or "person who may be affected" means a
1-11     person who has a personal justiciable interest related to a legal
1-12     right, duty, privilege, power, or economic interest affected by the
1-13     administrative hearing.  An interest common to members of the
1-14     general public does not qualify as a personal justiciable interest.
1-15     [The commission is not required to hold a hearing if the commission
1-16     determines that the basis of a person's request for a hearing as an
1-17     affected person is not reasonable or is not supported by competent
1-18     evidence.]  The commission shall adopt rules specifying factors
1-19     which must be considered in determining whether a person is an
1-20     affected person in any contested case arising under the air, waste,
1-21     or water programs within the commission's jurisdiction and whether
1-22     an affected association is entitled to standing in contested case
1-23     hearings.
1-24           SECTION 2.  Chapter 5, Water Code, is amended by adding
 2-1     Subchapter M to read as follows:
 2-2             SUBCHAPTER M.  ENVIRONMENTAL PERMITTING PROCEDURES
 2-3           Sec. 5.551.  PERMITTING PROCEDURES; APPLICABILITY.  (a)  This
 2-4     subchapter establishes procedures for providing public notice, an
 2-5     opportunity for public comment, and an opportunity for public
 2-6     hearing under Subchapters C-H, Chapter 2001, Government Code,
 2-7     regarding commission actions relating to a permit issued under
 2-8     Chapter 26 or 27 of this code or Chapter 361, Health and Safety
 2-9     Code.  This subchapter is procedural and does not expand or
2-10     restrict the types of commission actions for which public notice,
2-11     an opportunity for public comment, and an opportunity for public
2-12     hearing are provided under Chapter 26 or 27 of this code or Chapter
2-13     361, Health and Safety Code.
2-14           (b)  The commission by rule shall provide for additional
2-15     notice, opportunity for public comment, or opportunity for hearing
2-16     to the extent necessary to satisfy a requirement for United States
2-17     Environmental Protection Agency authorization of a state permit
2-18     program.
2-19           (c)  In this subchapter, "permit" means a permit, approval,
2-20     registration, or other form of authorization required by law for a
2-21     person to engage in an action.
2-22           Sec. 5.552.  NOTICE OF INTENT TO OBTAIN PERMIT.  (a)  The
2-23     executive director shall determine when an application is
2-24     administratively complete.
2-25           (b)  Not later than the 30th day after the date the executive
2-26     director determines the application to be administratively
2-27     complete:
 3-1                 (1)  the applicant shall publish notice of intent to
 3-2     obtain a permit at least once in the newspaper of largest
 3-3     circulation in the county in which the facility to which the
 3-4     application relates is located or proposed to be located; and
 3-5                 (2)  the chief clerk of the commission shall mail
 3-6     notice of intent to obtain a permit to:
 3-7                       (A)  the state senator and representative who
 3-8     represent the general area in which the facility is located or
 3-9     proposed to be located;
3-10                       (B)  the mayor and health authorities of the
3-11     municipality in which the facility is located or proposed to be
3-12     located;
3-13                       (C)  the county judge and health authorities of
3-14     the county in which the facility is located or proposed to be
3-15     located; and
3-16                       (D)  the river authority in which the facility is
3-17     located or proposed to be located if the application is under
3-18     Chapter 26, Water Code.
3-19           (c)  The commission by rule shall establish the form and
3-20     content of the notice.  The notice must include:
3-21                 (1)  the location and nature of the proposed activity;
3-22                 (2)  the location at which a copy of the application is
3-23     available for review and copying as provided by Subsection (e);
3-24                 (3)  a description, including a telephone number, of
3-25     the manner in which a person may contact the commission for further
3-26     information;
3-27                 (4)  a description, including a telephone number, of
 4-1     the manner in which a person may contact the applicant for further
 4-2     information;
 4-3                 (5)  a description of the procedural rights and
 4-4     obligations of the public, printed in a font style or size that
 4-5     clearly provides emphasis and distinguishes it from the remainder
 4-6     of the notice;
 4-7                 (6)  a description of the procedure by which a person
 4-8     may be placed on a mailing list in order to receive additional
 4-9     information about the application;
4-10                 (7)  the time and location of any public meeting to be
4-11     held under Subsection (f); and
4-12                 (8)  any other information the commission by rule
4-13     requires.
4-14           (d)  In addition to providing notice under Subsection (b)(1),
4-15     the applicant shall comply with any applicable public notice
4-16     requirements under Chapters 26 and 27 of this code, Chapter 361,
4-17     Health and Safety Code, and rules adopted under those chapters.
4-18           (e)  The applicant shall make a copy of the application
4-19     available for review and copying at a public place in the county in
4-20     which the facility is located or proposed to be located.
4-21           (f)  The applicant, in cooperation with the executive
4-22     director, may hold a public meeting in the county in which the
4-23     facility is located or proposed to be located in order to inform
4-24     the public about the application and obtain public input.
4-25           Sec. 5.553.  PRELIMINARY DECISION; NOTICE AND PUBLIC COMMENT.
4-26     (a)  The executive director shall conduct a technical review of and
4-27     issue a preliminary decision on the application.
 5-1           (b)  The applicant shall publish notice of the preliminary
 5-2     decision in a newspaper.
 5-3           (c)  The commission by rule shall establish the form and
 5-4     content of the notice, the manner of publication, and the duration
 5-5     of the public comment period.  The notice must include:
 5-6                 (1)  the information required by Sections
 5-7     5.552(c)(1)-(5);
 5-8                 (2)  a summary of the preliminary decision;
 5-9                 (3)  the location at which a copy of the preliminary
5-10     decision is available for review and copying as provided by
5-11     Subsection (e);
5-12                 (4)  a description of the manner in which comments
5-13     regarding the preliminary decision may be submitted; and
5-14                 (5)  any other information the commission by rule
5-15     requires.
5-16           (d)  In addition to providing notice under this section, the
5-17     applicant shall comply with any applicable public notice
5-18     requirements under Chapters 26 and 27 of this code, Chapter 361,
5-19     Health and Safety Code, and rules adopted under those chapters.
5-20           (e)  The applicant shall make a copy of the preliminary
5-21     decision available for review and copying at a public place in the
5-22     county in which the facility is located or proposed to be located.
5-23           Sec. 5.554.  PUBLIC MEETING.  During the public comment
5-24     period, the executive director may hold one or more public meetings
5-25     in the county in which the facility is located or proposed to be
5-26     located.  The executive director shall hold a public meeting:
5-27                 (1)  on the request of a member of the legislature who
 6-1     represents the general area in which the facility is located or
 6-2     proposed to be located; or
 6-3                 (2)  if the executive director determines that there is
 6-4     substantial public interest in the proposed activity.
 6-5           Sec. 5.555.  RESPONSE TO PUBLIC COMMENTS.  (a)  The executive
 6-6     director, in accordance with procedures provided by commission
 6-7     rule, shall file with the chief clerk of the commission a response
 6-8     to each relevant and material public comment on the preliminary
 6-9     decision filed during the public comment period.
6-10           (b)  The chief clerk of the commission shall transmit the
6-11     executive director's decision, the executive director's response to
6-12     public comments, and instructions for requesting that the
6-13     commission reconsider the executive director's decision or hold a
6-14     contested case hearing to:
6-15                 (1)  the applicant;
6-16                 (2)  any person who submitted comments during the
6-17     public comment period; and
6-18                 (3)  any person who requested to be on the mailing list
6-19     for the permit action.
6-20           Sec. 5.556.  REQUEST FOR RECONSIDERATION OR CONTESTED CASE
6-21     HEARING.  (a)  A person may request that the commission reconsider
6-22     the executive director's decision or hold a contested case hearing.
6-23     A request must be filed with the commission during the period
6-24     provided by commission rule.
6-25           (b)  The commission shall act on a request during the period
6-26     provided by commission rule.
6-27           (c)  The commission may not grant a request for a contested
 7-1     case hearing unless the commission determines that the request was
 7-2     filed by an affected person as defined by Section 5.115.
 7-3           (d)  The commission may not refer an issue to the State
 7-4     Office of Administrative Hearings for a hearing unless the
 7-5     commission determines that the issue:
 7-6                 (1)  involves a disputed question of fact;
 7-7                 (2)  was raised during the public comment period; and
 7-8                 (3)  is relevant and material to the decision on the
 7-9     application.
7-10           (e)  If the commission grants a request for a contested case
7-11     hearing it shall:
7-12                 (1)  limit the number and scope of the issues to be
7-13     referred to the State Office of Administrative Hearings for a
7-14     hearing; and
7-15                 (2)  consistent with the nature and number of the
7-16     issues to be considered at the hearing, specify the maximum
7-17     expected duration of the hearing.
7-18           (f)  This section does not preclude the commission from
7-19     holding a hearing if it determines that the public interest
7-20     warrants doing so.
7-21           SECTION 3.  Subchapter B, Chapter 26, Water Code, is amended
7-22     by adding Section 26.0286 to read as follows:
7-23           Sec. 26.0286.  PROCEDURES APPLICABLE TO PERMITS FOR CERTAIN
7-24     CONCENTRATED ANIMAL FEEDING OPERATIONS.  (a)  In this section,
7-25     "sole-source surface drinking water supply" means a body of surface
7-26     water that:
7-27                 (1)  is designated as a public water supply in rules
 8-1     adopted by the commission under Section 26.023; and
 8-2                 (2)  is the single source of supply of a public water
 8-3     supply system, exclusive of emergency water interconnections.
 8-4           (b)  The commission shall process an application for
 8-5     authorization to construct or operate a concentrated animal feeding
 8-6     operation as a specific permit under Section 26.028 subject to the
 8-7     procedures provided by Subchapter M, Chapter 5, if the concentrated
 8-8     animal feeding operation is located or proposed to be located:
 8-9                 (1)  in the watershed of a sole-source surface drinking
8-10     water supply; and
8-11                 (2)  sufficiently close, as determined by the
8-12     commission by rule, to an intake of a public water supply system in
8-13     the sole-source surface drinking water supply that contaminants
8-14     discharged from the concentrated animal feeding operation could
8-15     potentially affect the public drinking water supply.
8-16           SECTION 4.  Section 361.088, Health and Safety Code, is
8-17     amended by amending Subsection (c) and by adding Subsections (e)
8-18     and (f) to read as follows:
8-19           (c)  Except as provided by Subsection (e), before [Before] a
8-20     permit is issued, amended, extended, or renewed, the commission
8-21     shall provide an opportunity for a hearing to the applicant and
8-22     persons affected.  The commission may also hold a hearing on its
8-23     own motion.
8-24           (e)  After complying with Sections 5.552-5.555, Water Code,
8-25     the commission, without providing an opportunity for a contested
8-26     case hearing, may act on an application to renew a permit for:
8-27                 (1)  storage of hazardous waste in containers, tanks,
 9-1     or other closed vessels if the waste:
 9-2                       (A)  was generated on-site; and
 9-3                       (B)  does not include waste generated from other
 9-4     waste transported to the site; and
 9-5                 (2)  processing of hazardous waste if:
 9-6                       (A)  the waste was generated on-site;
 9-7                       (B)  the waste does not include waste generated
 9-8     from other waste transported to the site; and
 9-9                       (C)  the processing does not include thermal
9-10     processing.
9-11           (f)  Notwithstanding Subsection (e), if the commission
9-12     determines that an applicant's compliance history for the preceding
9-13     five years raises an issue regarding the applicant's ability to
9-14     comply with a material term of its permit, the commission shall
9-15     provide an opportunity to request a contested case hearing.
9-16           SECTION 5.  Section 382.056, Health and Safety Code, is
9-17     amended by amending Subsections (a), (b), (d), and (e) and adding
9-18     Subsections (f)-(p) to read as follows:
9-19           (a)  An applicant for a permit under Section 382.0518 or
9-20     [382.054 or] a permit renewal review under Section 382.055 shall
9-21     publish notice of intent to obtain the permit or permit review not
9-22     later than the 30th day after the date the commission determines
9-23     the application to be administratively complete.  The commission by
9-24     rule shall [may] require an applicant for a federal operating
9-25     permit under Section 382.054 to publish notice of intent to obtain
9-26     a permit or permit review consistent with federal requirements and
9-27     with the requirements of Subsection (b) [this section].  The
 10-1    applicant shall publish the notice at least once in a newspaper of
 10-2    general circulation in the municipality in which the facility or
 10-3    federal source is located or is proposed to be located or in the
 10-4    municipality nearest to the location or proposed location of the
 10-5    facility or federal source.  If the elementary or middle school
 10-6    nearest to the facility or proposed facility provides a bilingual
 10-7    education program as required by Subchapter B, Chapter 29,
 10-8    Education Code, the applicant shall also publish the notice at
 10-9    least once in an additional publication of general circulation in
10-10    the municipality or county in which the facility is located or
10-11    proposed to be located that is published in the language taught in
10-12    the bilingual education program.  This requirement is waived if
10-13    such a publication does not exist or if the publisher refuses to
10-14    publish the notice.  The commission by rule shall prescribe the
10-15    form and content of the notice and when notice must be published.
10-16    The commission [and] may require publication of additional notice.
10-17    The commission by rule shall prescribe alternative procedures for
10-18    publication of the notice in a newspaper if the applicant is a
10-19    small business stationary source as defined by Section 382.0365 and
10-20    will not have a significant effect on air quality.  The alternative
10-21    procedures must be cost-effective while ensuring adequate notice.
10-22    Notice required to be published under this section shall only be
10-23    required to be published in the United States.
10-24          (b)  The notice must include:
10-25                (1)  a description of the location or proposed location
10-26    of the facility or federal source;
10-27                (2)  the location at which a copy of the application is
 11-1    available for review and copying as provided by Subsection (d) [a
 11-2    statement that a person who may be affected by emissions of air
 11-3    contaminants from the facility, proposed facility, or federal
 11-4    source is entitled to request a hearing from the commission];
 11-5                (3)  a description, including a telephone number, of
 11-6    the manner in which the commission may be contacted for further
 11-7    information; [and]
 11-8                (4)  a description, including a telephone number, of
 11-9    the manner in which the applicant may be contacted for further
11-10    information;
11-11                (5)  a description of the procedural rights and
11-12    obligations of the public, printed in a font style or size that
11-13    clearly provides emphasis and distinguishes it from the remainder
11-14    of the notice, that includes a statement that a person who may be
11-15    affected by emissions of air contaminants from the facility,
11-16    proposed facility, or federal source is entitled to request a
11-17    hearing from the commission;
11-18                (6)  a description of the procedure by which a person
11-19    may be placed on a mailing list in order to receive additional
11-20    information about the application;
11-21                (7)  the time and location of any public meeting to be
11-22    held under Subsection (e); and
11-23                (8)  any other information the commission by rule
11-24    requires.
11-25          (d)  The applicant shall make a copy of the application
11-26    available for review and copying at a public place in the county in
11-27    which the facility or federal source is located or proposed to be
 12-1    located.
 12-2          (e)  The applicant, in cooperation with the executive
 12-3    director, may hold a public meeting in the county in which the
 12-4    facility or federal source is located or proposed to be located in
 12-5    order to inform the public about the application and obtain public
 12-6    input.
 12-7          (f)  The executive director shall conduct a technical review
 12-8    of and issue a preliminary decision on the application.
 12-9          (g)  If, in response to the notice published under Subsection
12-10    (a)  for a permit under Section 382.0518 or a permit renewal review
12-11    under Section 382.055, a person requests during the period provided
12-12    by commission rule that the commission hold a public hearing and
12-13    the request is not withdrawn before the date the preliminary
12-14    decision is issued, the applicant shall publish notice of the
12-15    preliminary decision in a newspaper, and the commission shall seek
12-16    public comment on the preliminary decision.  The commission shall
12-17    consider the request for public hearing under the procedures
12-18    provided by Subsections (i)-(n).  The commission may not seek
12-19    further public comment or hold a public hearing under the
12-20    procedures provided by Subsections (i)-(n) in response to a request
12-21    for a public hearing on [Except as provided by Section 382.0561 or
12-22    Subsection (e), the commission or its delegate shall hold a public
12-23    hearing on the permit application or permit renewal application
12-24    before granting the permit or renewal if a person who may be
12-25    affected by the emissions, or a member of the legislature from the
12-26    general area in which the facility or proposed facility is located,
12-27    requests a hearing within the period set by commission rule.  The
 13-1    commission shall not hold a hearing if the basis of a request by a
 13-2    person who may be affected is determined to be unreasonable.
 13-3    Reasons for which a request for a hearing on a permit amendment,
 13-4    modification, or renewal shall be considered to be unreasonable
 13-5    include, but are not limited to,] an amendment, modification, or
 13-6    renewal that would not result in an increase in allowable emissions
 13-7    and would not result in the emission of an air contaminant not
 13-8    previously emitted.
 13-9          (h)  If, in response to the notice published under Subsection
13-10    (a)  for a permit under Section 382.054, a person requests during
13-11    the public comment period provided by commission rule that the
13-12    commission hold a public hearing, the commission shall consider the
13-13    request under the procedures provided by Section 382.0561 and not
13-14    under the procedures provided by Subsections (i)-(n).
13-15          (i)  The commission by rule shall establish the form and
13-16    content of the notice, the manner of publication, and the duration
13-17    of the public comment period.  The notice must include:
13-18                (1)  the information required by Subsection (b);
13-19                (2)  a summary of the preliminary decision;
13-20                (3)  the location at which a copy of the preliminary
13-21    decision is available for review and copying as provided by
13-22    Subsection (j);
13-23                (4)  a description of the manner in which comments
13-24    regarding the preliminary decision may be submitted; and
13-25                (5)  any other information the commission by rule
13-26    requires.
13-27          (j)  The applicant shall make a copy of the preliminary
 14-1    decision available for review and copying at a public place in the
 14-2    county in which the facility is located or proposed to be located.
 14-3          (k)  During the public comment period, the executive director
 14-4    may hold one or more public meetings in the county in which the
 14-5    facility is located or proposed to be located.  The executive
 14-6    director shall hold a public meeting:
 14-7                (1)  on the request of a member of the legislature who
 14-8    represents the general area in which the facility is located or
 14-9    proposed to be located; or
14-10                (2)  if the executive director determines that there is
14-11    substantial public interest in the proposed activity.
14-12          (l)  The executive director, in accordance with procedures
14-13    adopted by the commission by rule, shall file with the chief clerk
14-14    of the commission a response to each relevant and material public
14-15    comment on the preliminary decision filed during the public comment
14-16    period.
14-17          (m)  The chief clerk of the commission shall transmit the
14-18    executive director's decision, the executive director's response to
14-19    public comments, and instructions for requesting that the
14-20    commission reconsider the executive director's decision or hold a
14-21    contested case hearing to:
14-22                (1)  the applicant;
14-23                (2)  any person who submitted comments during the
14-24    public comment period;
14-25                (3)  any person who requested to be on the mailing list
14-26    for the permit action; and
14-27                (4)  any person who timely filed a request for a public
 15-1    hearing in response to the notice published under Subsection (a).
 15-2          (n)  Except as provided by Section 382.0561, the commission
 15-3    shall consider a request that the commission reconsider the
 15-4    executive director's decision or hold a public hearing in
 15-5    accordance with the procedures provided by Section 5.556, Water
 15-6    Code.
 15-7          (o) [(e)]  Notwithstanding other provisions of this chapter,
 15-8    the commission may hold a hearing on a permit amendment,
 15-9    modification, or renewal if the commission [board] determines that
15-10    the application involves a facility for which the applicant's
15-11    compliance history contains violations which are unresolved and
15-12    which constitute a recurring pattern of egregious conduct which
15-13    demonstrates a consistent disregard for the regulatory process,
15-14    including the failure to make a timely and substantial attempt to
15-15    correct the violations.
15-16          (p)  The commission by rule shall provide for additional
15-17    notice, opportunity for public comment, or opportunity for public
15-18    hearing to the extent necessary to satisfy a requirement to obtain
15-19    or maintain delegation or approval of a federal program.
15-20          SECTION 6.  Section 2003.047, Government Code, is amended by
15-21    amending Subsections (e)-(j) and adding Subsections (k)-(o) to read
15-22    as follows:
15-23          (e)  In referring a matter for hearing [When the office
15-24    receives jurisdiction of a proceeding], the commission shall
15-25    provide to the administrative law judge a list of disputed issues.
15-26    The commission shall specify the date by which the administrative
15-27    law judge is expected to complete the proceeding and provide a
 16-1    proposal for decision to the commission.  The administrative law
 16-2    judge may extend the proceeding if the administrative law judge
 16-3    determines that failure to grant an extension would deprive a party
 16-4    of due process or another constitutional right.  The administrative
 16-5    law judge shall establish a docket control order designed to
 16-6    complete the proceeding by the date specified by the commission.
 16-7          (f)  Except as otherwise provided by this subsection, the
 16-8    scope of the hearing is limited to the issues referred by the
 16-9    commission.  On the request of a party, the administrative law
16-10    judge may consider an issue that was not referred by the commission
16-11    if the administrative law judge determines that:
16-12                (1)  the issue is material;
16-13                (2)  the issue is supported by evidence; and
16-14                (3)  there are good reasons for the failure to supply
16-15    available information regarding the issue during the public comment
16-16    period.
16-17          (g)  The scope of permissible discovery is limited to:
16-18                (1)  any matter reasonably calculated to lead to the
16-19    discovery of admissible evidence regarding any issue referred to
16-20    the administrative law judge by the commission or that the
16-21    administrative law judge has agreed to consider; and
16-22                (2)  the production of documents:
16-23                      (A)  reviewed or relied on in preparing
16-24    application materials or selecting the site of the proposed
16-25    facility; or
16-26                      (B)  relating to the ownership of the applicant
16-27    or the owner or operator of the facility or proposed facility.
 17-1          (h)  The commission by rule shall:
 17-2                (1)  provide for subpoenas and commissions for
 17-3    depositions; and
 17-4                (2)  require that discovery be conducted in accordance
 17-5    with the Texas Rules of Civil Procedure, except that the commission
 17-6    by rule shall determine the level of discovery under Rule 190,
 17-7    Texas Rules of Civil Procedure, appropriate for each type of case
 17-8    considered by the commission, taking into account the nature and
 17-9    complexity of the case.
17-10          (i)  [or areas that must be addressed.  In addition, the
17-11    commission may identify and provide to the administrative law judge
17-12    at any time additional issues or areas that must be addressed.]
17-13          [(f)]  The office and the commission jointly shall adopt
17-14    rules providing for certification to the commission of an issue
17-15    that involves an ultimate finding of compliance with or
17-16    satisfaction of a statutory standard the determination of which is
17-17    committed to the discretion or judgment of the commission by law.
17-18    The rules must address, at a minimum, the issues that are
17-19    appropriate for certification and the procedure to be used in
17-20    certifying the issue.  Each agency shall publish the jointly
17-21    adopted rules.
17-22          (j) [(g)]  An administrative law judge hearing a case on
17-23    behalf of the commission, on the judge's own motion or on motion of
17-24    a party and after notice and an opportunity for a hearing, may
17-25    impose appropriate sanctions as provided by Subsection (k) [(h)]
17-26    against a party or its representative for:
17-27                (1)  filing a motion or pleading that is groundless and
 18-1    brought:
 18-2                      (A)  in bad faith;
 18-3                      (B)  for the purpose of harassment; or
 18-4                      (C)  for any other improper purpose, such as to
 18-5    cause unnecessary delay or needless increase in the cost of the
 18-6    proceeding;
 18-7                (2)  abuse of the discovery process in seeking, making,
 18-8    or resisting discovery; or
 18-9                (3)  failure to obey an order of the administrative law
18-10    judge or the commission.
18-11          (k) [(h)]  A sanction imposed under Subsection (j) [(g)] may
18-12    include, as appropriate and justified, issuance of an order:
18-13                (1)  disallowing further discovery of any kind or of a
18-14    particular kind by the offending party;
18-15                (2)  charging all or any part of the expenses of
18-16    discovery against the offending party or its representatives;
18-17                (3)  holding that designated facts be considered
18-18    admitted for purposes of the proceeding;
18-19                (4)  refusing to allow the offending party to support
18-20    or oppose a designated claim or defense or prohibiting the party
18-21    from introducing designated matters in evidence;
18-22                (5)  disallowing in whole or in part requests for
18-23    relief by the offending party and excluding evidence in support of
18-24    those requests; and
18-25                (6)  striking pleadings or testimony, or both, in whole
18-26    or in part.
18-27          (l) [(i)(1)]  After hearing evidence and receiving legal
 19-1    argument, an administrative law judge shall make findings of fact,
 19-2    conclusions of law, and any ultimate findings required by statute,
 19-3    all of which shall be separately stated.  The administrative law
 19-4    judge shall make a proposal for decision to the commission and
 19-5    shall serve the proposal for decision on all parties.  An
 19-6    opportunity shall be given to each party to file exceptions to the
 19-7    proposal for decision and briefs related to the issues addressed in
 19-8    the proposal for decision.  The commission shall consider and act
 19-9    on the proposal for decision.
19-10          (m) [(2)]  Except as provided in Section 361.0832, Health and
19-11    Safety Code, the commission shall consider the proposal for
19-12    decision prepared by the administrative law judge, the exceptions
19-13    of the parties, and the briefs and argument of the parties.  The
19-14    commission may amend the proposal for decision, including any
19-15    finding of fact, but any such amendment thereto and order shall be
19-16    based solely on the record made before the administrative law
19-17    judge.  Any such amendment by the commission shall be accompanied
19-18    by an explanation of the basis of the amendment.  The commission
19-19    may also refer the matter back to the administrative law judge to
19-20    reconsider any findings and conclusions set forth in the proposal
19-21    for decision or take additional evidence or to make additional
19-22    findings of fact or conclusions of law.  The commission shall serve
19-23    a copy of the commission's order, including its finding of facts
19-24    and conclusions of law, on each party.
19-25          (n) [(3)]  The provisions of Chapter 2001[,] shall apply to
19-26    contested case hearings for the commission to the extent not
19-27    inconsistent with this section.
 20-1          (o) [(j)]  An administrative law judge hearing a case on
 20-2    behalf of the commission may not, without the agreement of all
 20-3    parties, issue an order referring the case to an alternative
 20-4    dispute resolution procedure if the commission has already
 20-5    conducted an unsuccessful alternative dispute resolution procedure.
 20-6    If the commission has not already conducted an alternative dispute
 20-7    resolution procedure, the administrative law judge shall consider
 20-8    the commission's recommendation in determining whether to issue an
 20-9    order referring the case to the procedure.
20-10          SECTION 7.  (a)  This Act takes effect September 1, 1999.
20-11          (b)  The changes in law made by this Act apply only to an
20-12    application to issue, amend, or renew a permit that is declared to
20-13    be administratively complete on or after the effective date of this
20-14    Act.  An application to issue, amend, or renew a permit that was
20-15    declared to be administratively complete before the effective date
20-16    of this Act is governed by the former law, and that law is
20-17    continued in effect for that purpose.
20-18          (c)  The changes in law made by Section 5 of this Act do not
20-19    expand or restrict the types of actions of the Texas Natural
20-20    Resource Conservation Commission for which public notice, an
20-21    opportunity for public comment, and an opportunity for public
20-22    hearing under Subchapters C-H, Chapter 2001, Government Code, are
20-23    provided under Chapter 382, Health and Safety Code.
20-24          SECTION 8.  The importance of this legislation and the
20-25    crowded condition of the calendars in both houses create an
20-26    emergency and an imperative public necessity that the
20-27    constitutional rule requiring bills to be read on three several
 21-1    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 801 was passed by the House on April
         27, 1999, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 801 on May 27, 1999, and requested
         the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 801 on May 30, 1999, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 801 was passed by the Senate, with
         amendments, on May 26, 1999, by a viva-voce vote; at the request of
         the House, the Senate appointed a conference committee to consider
         the differences between the two houses; and that the Senate adopted
         the conference committee report on H.B. No. 801 on May 30, 1999, by
         a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor