76R7711 MI-D                           
         By Chisum                                             H.B. No. 1171
         Substitute the following for H.B. No. 1171:
         By Allen                                          C.S.H.B. No. 1171
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to regulation of radioactive materials and other sources
 1-3     of radiation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 401.003(17), Health and Safety Code, is
 1-6     amended to read as follows:
 1-7                 (17)  "Radiation" means one or more of the following:
 1-8                       (A)  gamma-rays and X-rays, alpha and beta
 1-9     particles, and other atomic or nuclear particles or rays;
1-10                       (B)  [stimulated] emission of radiation from an
1-11     electronic device to energy density levels that could reasonably
1-12     cause bodily harm; or
1-13                       (C)  sonic, ultrasonic, or infrasonic waves
1-14     emitted from an electronic device or resulting from the operation
1-15     of an electronic circuit in an electronic device in the energy
1-16     range to reasonably cause detectable bodily harm.
1-17           SECTION 2.  Sections 401.106, 401.108, and 401.110, Health
1-18     and Safety Code, are amended to read as follows:
1-19           Sec. 401.106.  EXEMPTION FROM LICENSING OR REGISTRATION
1-20     REQUIREMENTS OR FROM APPLICATION OF RULE.  (a)  The board by rule
1-21     may exempt a source of radiation or a kind of use or user from the
1-22     licensing or registration requirements provided by this chapter if
1-23     the board finds that the exemption of that source of radiation or
1-24     kind of use or user will not constitute a significant risk to the
 2-1     public health and safety and the environment.
 2-2           (b)  The department or commission, as applicable, may exempt
 2-3     a source of radiation or a kind of use or user from the application
 2-4     of a  rule adopted by the department or commission under this
 2-5     chapter if the department or commission, respectively, determines
 2-6     that the exemption:
 2-7                 (1)  is not prohibited by law; and
 2-8                 (2)  will not result in a significant risk to public
 2-9     health and safety and the environment.
2-10           Sec. 401.108.  FINANCIAL QUALIFICATIONS.  (a)  Before a
2-11     license is issued or renewed by the [department or] commission, the
2-12     applicant shall demonstrate to the commission [issuing agency] that
2-13     the applicant is financially qualified to conduct the licensed
2-14     activity, including any required decontamination, decommissioning,
2-15     reclamation, and disposal.  The board by rule may require an
2-16     applicant to demonstrate to the department that the applicant is
2-17     financially qualified to conduct the licensed activity, including
2-18     any required decontamination, decommissioning, reclamation, and
2-19     disposal, before the department issues or renews a license.
2-20           (b)  A license holder shall submit to the department or
2-21     commission, as appropriate [issuing agency], at intervals required
2-22     by board or commission [issuing agency] rules or the license, proof
2-23     of the license holder's financial qualifications.
2-24           (c)  The commission shall reevaluate every five years the
2-25     qualifications and security provided by a license holder under
2-26     Subchapter F [or Subchapter G]. The reevaluation may coincide with
2-27     license renewal procedures if renewal and reevaluation occur in the
 3-1     same year.
 3-2           Sec. 401.110.  DETERMINATION ON LICENSE.  In making a
 3-3     determination whether to grant, deny, amend, renew, revoke,
 3-4     suspend, or restrict a license or registration, the department or
 3-5     commission may consider those aspects of an applicant's or license
 3-6     holder's background that bear materially on the ability to fulfill
 3-7     the obligations of licensure, including technical competence,
 3-8     financial qualifications, and the applicant's or license holder's
 3-9     record in areas involving radiation.
3-10           SECTION 3.  Section 401.305(b), Health and Safety Code, is
3-11     amended to read as follows:
3-12           (b)  The department and commission each shall deposit to the
3-13     credit of the fund money and security they receive under this
3-14     chapter, including an administrative penalty collected by the
3-15     department under Sections 401.384-401.390 but excluding [other
3-16     than] fees collected under Sections 401.301 and 401.302.  Interest
3-17     earned on money in the fund shall be credited to the fund.
3-18           SECTION 4.  Section 401.381(a), Health and Safety Code, is
3-19     amended to read as follows:
3-20           (a)  A person who causes, suffers, allows, or permits a
3-21     violation of [violates] this chapter, a department rule or order,
3-22     or a license or registration condition is subject to a civil
3-23     penalty of not less than $100 or more than $25,000 for each
3-24     violation and for each day that a continuing violation occurs.
3-25           SECTION 5.  Section 401.384(a), Health and Safety Code, is
3-26     amended to read as follows:
3-27           (a)  The department may assess an administrative [a civil]
 4-1     penalty as provided by this section and Sections 401.385-401.390
 4-2     [401.385-401.391] against a person who causes, suffers, allows, or
 4-3     permits a violation of [violates] a provision of this chapter
 4-4     relating to an activity under the department's jurisdiction, a rule
 4-5     or order adopted by the department under this chapter, or a
 4-6     condition of a license or registration issued by the department
 4-7     under this chapter.
 4-8           SECTION 6.  Section 401.385, Health and Safety Code, is
 4-9     amended to read as follows:
4-10           Sec. 401.385.  PRELIMINARY REPORT OF VIOLATION.  If the
4-11     department, after an investigation, concludes that a violation
4-12     relating to an activity under its jurisdiction has occurred, the
4-13     department may issue a preliminary report:
4-14                 (1)  stating the facts that support the conclusion;
4-15                 (2)  recommending that an administrative [a civil]
4-16     penalty under Section 401.384 be imposed; and
4-17                 (3)  recommending the amount of the penalty, which
4-18     shall be based on the seriousness of the violation as determined
4-19     from the facts surrounding the violation.
4-20           SECTION 7.  Sections 401.388(d) and (f), Health and Safety
4-21     Code, are amended to read as follows:
4-22           (d)  Based on the findings of fact and the recommendations of
4-23     the hearing examiner, the commissioner by order may find that a
4-24     violation has occurred and assess an administrative [a civil]
4-25     penalty or may find that no violation occurred.
4-26           (f)  The commissioner shall give notice to the person charged
4-27     of the commissioner's decision, and if the commissioner finds that
 5-1     a violation has occurred and an administrative [a civil] penalty
 5-2     has been assessed, the commissioner shall give to the person
 5-3     charged written notice of:
 5-4                 (1)  the commissioner's findings;
 5-5                 (2)  the amount of the penalty; and
 5-6                 (3)  the person's right to judicial review of the
 5-7     commissioner's order.
 5-8           SECTION 8.  (a)  This Act takes effect September 1, 1999.
 5-9           (b)  Section 401.305(b), Health and Safety Code, as amended
5-10     by this Act, applies only to the deposit of an administrative
5-11     penalty collected under Sections 401.384-401.390, Health and Safety
5-12     Code, on or after the effective date of this Act.  An
5-13     administrative penalty collected under Sections 401.384-401.390,
5-14     Health and Safety Code, before the effective date of this Act shall
5-15     be deposited as provided by the law as it existed immediately
5-16     before the effective date of this Act, and that law is continued in
5-17     effect for that purpose.
5-18           (c)  Sections 401.381(a) and 401.384(a), Health and Safety
5-19     Code, as amended by this Act, apply only to a violation committed
5-20     on or after the effective date of this Act.  For purposes of this
5-21     section, a violation is committed before the effective date of this
5-22     Act if any element of the violation occurs before that date.
5-23           SECTION 9.  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
5-26     constitutional rule requiring bills to be read on three several
5-27     days in each house be suspended, and this rule is hereby suspended.