SRC-MKV S.B. 310 77(R)BILL ANALYSIS Senate Research CenterS.B. 310 By: Harris Natural Resources 7/19/2001 Enrolled DIGEST AND PURPOSE Periodically, each state agency undergoes a review by the Sunset Advisory Commission (commission). As a result of the review, the commission will recommend changes to the agency or recommend that agency be abolished. During the last legislative interim the Railroad Commission of Texas underwent such a review and S.B. 310 is a result of that review. S.B. 310 continues the Railroad Commission for another twelve years and makes statutory changes which were recommended by the commission. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Railroad Commission in SECTIONS 2 (Article 6447n, Title 112, V.T.C.S.), 5 (Section 81.0531, Natural Resources Code), 6 (Sections 81.055 and 81.056, Natural Resources Code), 21 (Section 91.1041, Natural Resources Code), 22 (Section 91.1041, Natural Resources Code), 23 (Section 91.1042, Natural Resources Code), 24 (Section 91.1042, Natural Resources Code), 32 (Sections 91.1131 and 91.1132, Natural Resources Code), 34 (Section 91.661, Natural Resources Code), 35 (Section 113.082, Natural Resources Code), 55 (Section 116.032, Natural Resources Code), 61 (Section 117.012, Natural Resources Code), 62 (Section 118.001, Natural Resources Code), 64 (Section 102.006, Utilities Code), and 71 (Section 121.206, Utilities Code). SECTION BY SECTION ANALYSIS SECTION 1. Amends Articles 6445a, 6447, 6447b, 6447c, and 6447h, Revised Statutes, as follows: Art. 6445a. SUNSET PROVISION. Changes the date on which the Railroad Commission of Texas (commission) is to be abolished, unless continued in existence as provided by this chapter, from September 1, 2001, to September 1, 2013. Art. 6447. THE COMMISSION. Adds language to provide that the members are subject to the provisions of Chapter 572, Government Code, that apply to elected officers, including the requirements governing personal financial statements, standards of conduct, and conflicts of interest. Deletes language relating to provisions that no member be directly or indirectly interested in any railroad, or in any stock, bond, mortgage, security, or earnings of any railroad, and that should a member voluntarily become so interested his office shall become vacant, or should he become so interested otherwise than voluntarily, he shall within a reasonable time divest himself of such interest, failing to do this, his office shall become vacant. Deletes language providing that no commissioner shall hold any other office of any character, while commissioner, nor engage in any occupation or business inconsistent with his duties as commissioner. Art. 6447b. New heading: EQUAL EMPLOYMENT OPPORTUNITY. (a) Deletes language relating to the designee of the commission developing an intra-agency career ladder program, one part of which shall be the intra-agency posting of all nonentry level positions for at least 10 days before any public posting. Deletes language requiring the commission or its designee to develop a system of annual performance evaluations based on measurable job tasks. Requires the commission to prepare and maintain a written policy statement that implements a program of equal employment opportunity to ensure that all personnel decisions are made without regard to race, color, disability, sex, religion, age, or national origin. (b) Requires the policy statement to include certain information. (c) Requires the policy statement to meet certain criteria. Art. 6447c. CONFLICT OF INTEREST. (a) Defines "Texas trade association." (b) Prohibits a person from being an employee of the commission employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) and its subsequent amendments, under certain conditions. (c) Prohibits a person who is required to register as a lobbyist under Chapter 305, Government Code, from acting as the general counsel to the commission. (d) Requires the commission to provide to members of the commission and to agency employees, as often as necessary, information regarding the requirements for office or employment under this chapter, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state officers or employees. Art. 6447h. COMPLAINTS. (a) Requires the commission shall maintain a file on each written complaint filed with the commission. Requires the file to include certain information. (b) Requires the commission to provide to the person filing the complaint and to each person who is a subject of the complaint a copy of the commission's policies and procedures relating to complaint investigation and resolution. (c) Requires the commission, at least quarterly until final disposition of the complaint, to notify the person filing the complaint and each person who is a subject of the complaint of the status of the investigation unless the notice would jeopardize an undercover investigation. SECTION 2. Amends Title 112, Revised Statutes, by adding Articles 6447k, 6447l, 6447m, and 6447n, as follows: Art. 6447k. SEPARATION OF POLICY-MAKING AND MANAGEMENT RESPONSIBILITIES. Requires the commission to develop and implement policies that clearly separate the policy-making responsibilities of the members of the commission and the management responsibilities of the staff of the commission. Art. 6447l. PUBLIC PARTICIPATION. Requires the commission to develop and implement policies that provide the public with a reasonable opportunity to appear before the commission and to speak on any issue under the jurisdiction of the commission. Art. 6447m. EMPLOYEE INCENTIVE PROGRAM. Requires the commission to provide to commission employees information and training on the benefits and methods of participation in the state employee incentive program. Art. 6447n. METHOD OF MAKING PAYMENTS TO COMMISSION. (a) Authorizes the commission to authorize payment, as prescribed by the commission, of regulatory fees, fines, penalties, and charges for goods and services by means of an electronic payment method or a credit card issued by a financial institution chartered by a state or the United States or issued by a nationally recognized credit organization approved by the commission. Authorizes a payment by the authorized method to be made in person, by telephone, or through the Internet. (b) Authorizes the commission to require a person who makes a payment to the commission by means of an electronic payment method or credit card to pay a discount or service charge in an amount reasonable and necessary to reimburse the commission for the costs involved in processing the payment. (c) Authorizes the commission to adopt rules as necessary to implement this article. SECTION 3. Amends Section 81.0521, Natural Resources Code, by amending Subsection (a) and adding Subsection (c), as follows: (a) Requires that with each application for an exception to any commission rule contained in Chapter 3 of Part I of Title 16 of the Texas Administrative Code, the applicant submit to the commission a fee of $150, rather than $50. (c) Requires two-thirds of the proceeds from this fee, including any penalties collected in connection with the fee, to be deposited to the oil-field cleanup fund as provided by Section 91.111. SECTION 4. Amends Section 81.0522(a), Natural Resources Code, is amended to require that with each Natural Gas Policy Act (15 U.S.C. Sections 3301-3432) application, the applicant submit to the commission a fee. Requires the commission to set the application fee in an amount necessary to cover the cost of the commission's well category determination program but not to exceed $150. SECTION 5. Amends Section 81.0531, Natural Resources Code, by amending Subsections (c) and (d) and adding Subsection (e), as follows: (c) Adds language requiring the commission, in determining the amount of the penalty for a violation of a provision of this title or a rule, order, license, permit, or certificate that relates to pipeline safety, to consider the guidelines adopted under Subsection (d). (d) Requires the commission by rule to adopt guidelines to be used in determining the amount of the penalty for a violation of a provision of this title or a rule, order, license, permit, or certificate that relates to pipeline safety. Requires the guidelines to include a penalty calculation worksheet that specifies the typical penalty for certain violations, circumstances justifying enhancement of a penalty and the amount of the enhancement, and circumstances justifying a reduction in a penalty and the amount of the reduction. Requires the guidelines to take into account certain factors. (e) Requires a penalty collected under this section to be deposited to the credit of the oil-field cleanup fund. SECTION 6. Amends Chapter 81C, Natural Resources Code, by adding Sections 81.055 and 81.056, as follows: Sec. 81.055. PIPELINE SYSTEM FINANCIAL RESPONSIBILITY REQUIREMENTS. (a) Authorizes the legislature, not later than March 1, 2002, to carry out certain actions. (b) Authorizes the commission by rule, if the legislature finds that adoption of such a requirement is desirable, to require an owner, operator, or manager of a pipeline system to obtain evidence of financial responsibility. Requires the rules to specify the appropriate form and amount of that evidence and authorizes them to require evidence of financial responsibility in different amounts for different pipeline systems, taking into consideration certain factors. Sec. 81.056. PIPELINE CONSTRUCTION AND OPERATION PUBLIC NOTIFICATION REQUIREMENTS. (a) Provides that this section applies only to a new pipeline system, or the extension of an existing pipeline system, that crosses more than three counties and for which construction began after September 1, 2001. (b) Requires a pipeline operator to publish notice in a newspaper of general circulation in each county with a population greater than 10,000 that contains part of the proposed route of the pipeline system. Requires the notice to be published in the form prescribed by the commission and include the location of the beginning and end points of the proposed part of the system and a listing of each state or federal highway that will be crossed by the proposed part of the system. Requires the notice to be published at least 30 days but no more than one year before the start of construction. (c) Requires the commission to carry out certain duties before approving any permit for the operation of a pipeline required by this chapter or the rules adopted under it. (d) Provides that the duty to consider comments under Subsection (c)(2) is not intended to unreasonably delay action on the permit application or to require the commission to consider factors other than those criteria provided by law or commission rule for determining whether to award the permit. SECTION 7. Amends Section 81.116(a), Natural Resources Code, to provide that an oil-field cleanup regulatory fee is imposed on crude petroleum produced in this state in the amount of five-eighths, rather than five-sixteenths, of one cent on each barrel of 42 standard gallons. SECTION 8. Amends Section 81.117(a), Natural Resources Code, to provide that an oil-field cleanup regulatory fee is imposed on gas initially produced and saved in this state in the amount of one-fifteenth, rather than one-thirtieth, of one cent for each thousand cubic feet. SECTION 9. Amends Sections 85.161 and 85.2021, Natural Resources Code, as follows: Sec. 85.161. WELL OWNERS AND OPERATORS CERTIFICATES. Requires the owner or operator of any well subject to the jurisdiction of the commission to secure from the commission a certificate showing compliance with the oil or gas conservation laws of the state and conservation rules and orders of the commission. Sec. 85.2021. DRILLING PERMIT FEE. (a) Changes the amount of nonrefundable fees required to be submitted by the applicant with each application or materially amended application for a permit to drill, deepen, plug back, or reenter a well, as follows: (1) $200, rather than $100, if the total depth of the well is 2,000 feet or less; (2) $225, rather than $125, if the total depth of the well is greater than 2,000 feet but less than or equal to 4,000 feet; (3) $250, rather than $150, if the total depth of the well is greater than 4,000 feet but less than or equal to 9,000 feet; (4) $300, rather than $200, if the total depth of the well is greater than 9,000 feet. (b) Requires an applicant to submit an additional nonrefundable fee of $200 when a Rule 37 spacing or a Rule 38 density exception review is required. (c) Requires an applicant to submit an additional nonrefundable fee of $150, rather than $50, when requesting that the commission expedite the application for a permit to drill, deepen, plug back, or reenter a well. (d) Requires an applicant, with each application for an extension of time to plug a well pursuant to commission rules, to submit to the commission a nonrefundable fee of $300, rather than $100, unless the applicant has filed a bond, letter of credit, or cash deposit under Section 91.104(b)(1), (2), or (3). (e) Requires all fees collected under this section to be deposited in the state oil-field cleanup fund. SECTION 10. Amends Section 85.2021, Natural Resources Code, effective September 1, 2004, as follows: Sec. 85.2021. DRILLING PERMIT FEE. (a) Changes the amount of nonrefundable fees required to be submitted by the applicant with each application or materially amended application for a permit to drill, deepen, plug back, or reenter a well, as follows: (1) $200, rather than $100, if the total depth of the well is 2,000 feet or less; (2) $225, rather than $125, if the total depth of the well is greater than 2,000 feet but less than or equal to 4,000 feet; (3) $250, rather than $150, if the total depth of the well is greater than 4,000 feet but less than or equal to 9,000 feet; (4) $300, rather than $200, if the total depth of the well is greater than 9,000 feet. (b) Requires an applicant to submit an additional nonrefundable fee of $200 when a Rule 37 spacing or a Rule 38 density exception review is required. (c) Requires an applicant to submit an additional nonrefundable fee of $150, rather than $50, when requesting that the commission expedite the application for a permit to drill, deepen, plug back, or reenter a well. (d) Requires all fees collected under this section to be deposited in the state oil-field cleanup fund. SECTION 11. Amends Section 89.002(a)(2), Natural Resources Code, effective September 1, 2004, to redefine "operator." SECTION 12. Amends Section 89.011, Natural Resources Code, as follows: Sec. 89.011. DUTY OF OPERATOR. (a) No changes. (b) Requires that if useable quality water zones are present, the operator verify the placement of the plug at the base of the deepest fresh water zone required to be protected. Provides that the well is considered to have been properly plugged only when the verification is satisfactory and meets commission requirements. (c) Provides that if, for the use of the surface owner, the operator of the well plugs the well back to produced fresh water, the duty of the operator to properly plug the well ends only when certain conditions have been met. (d) Provides that Subsections (b) and (c) apply only to wells plugged on or after the effective date of this Act. (e) Redesignated from Subsection (d). SECTION 13. Amends Section 89.043(c), Natural Resources Code, to require that not later than the 30th day before the date the commission enters into a contract to plug a delinquent inactive well, the commission send a notice by certified mail to the operator of the well at the address last reported to the commission as required by Section 91.142 and commission rules. Requires the notice to direct the operator to plug the well and to state certain information. SECTION 14. Amends Section 89.083(c), Natural Resources Code, to authorize the lien to be foreclosed by judicial action or commission order at any time after notice and an opportunity for a hearing. Provides that if notice is mailed under Section 89.043 and if the lien is not previously foreclosed, the lien is foreclosed by operation of law on the 15th day after the date the notice is mailed unless the commission has received a valid and timely request for a hearing before that date. Deletes language authorizing the commission to foreclose on the lien by entering into a plugging contract. Provides that the commission is not required to give notice or an opportunity for a hearing to subordinate lienholders or nonoperators before foreclosing the lien. SECTION 15. Amends Sections 89.085(a), (g), and (h), Natural Resources Code, as follows: (a) Provides that when the commission forecloses its lien under Section 89.083 on, rather than enters into a contract to plug, a delinquent inactive well, well-site equipment and any amount of hydrocarbons from the well that is stored on the lease are presumed to have been abandoned and may be disposed of by the commission in a commercially reasonable manner by either or both of specified methods. (g) Requires the notice required by Subsection (f) of this section to include certain information. (h) Makes a conforming change. SECTION 16. Amends Sections 89.086(a) and (c), Natural Resources Code, to make conforming changes. SECTION 17. Amends Sections 91.1013(a) and (b), Natural Resources Code, as follows: (a) Requires that with each application for a fluid injection well permit, the applicant submit to the commission a nonrefundable fee of $200, rather than $100. (b) Requires that with each application for a permit to discharge to surface water under this chapter and commission rules, other than a permit for a discharge that meets National Pollutant Discharge Elimination System requirements for agricultural or wildlife use, the applicant submit to the commission a nonrefundable fee of $300, rather than $200. SECTION 18. Amends Section 91.103, Natural Resources Code, effective September 1, 2004, as follows: Sec. 91.103. New heading: PERSONS REQUIRED TO EXECUTE BOND, LETTER OF CREDIT, OR CASH DEPOSIT. Requires any person, including any firm, partnership, joint stock association, corporation, or other organization, required to file an organization report under Section 91.142 of this code to execute and file with the commission a bond, letter of credit, or cash deposit. SECTION 19. Amends Section 91.104(b) and (c), Natural Resources Code, as follows: (b) Authorizes a person required to file a bond or alternate form of financial security under Section 91.103 to choose to file: (1) an individual bond as provided under Section 91.1041; (2) a blanket bond as provided under Section 91.1042; (3) a letter of credit or cash deposit in the same amount as required for an individual bond under Section 91.1041 or a blanket bond under Section 91.1042; (4) a nonrefundable annual fee of $1,000, under certain conditions. (c) Requires a person who chooses to file a form of financial security other than a bond, letter of credit, or cash deposit to also submit a fee of $300 for each application to extend the time to plug a well in accordance with Section 85.2021. SECTION 20. Amends Section 91.104, Natural Resources Code, effective September 1, 2004, as follows: Sec. 91.104. New heading: BONDS, LETTERS OF CREDIT, AND CASH DEPOSITS. (a) Makes a conforming change. (b) Requires a person required to file a bond, letter of credit, or cash deposit under Section 91.103 who is an inactive operator or who operates one or more wells and is not involved in any other activities that require the filing of a bond, letter of credit, or cash deposit to, at the time of filing or renewing an organization report required by Section 91.142, file certain bonds and letters of credit. SECTION 21. Amends Section 91.1041, Natural Resources Code, as follows: Sec. 91.1041. INDIVIDUAL BOND. (a) Authorizes a person required to file a bond or alternate form of financial security under Section 91.103 who operates one or more wells to file a bond in an amount equal to $2 for each foot of well depth for each well. (b) Requires that, notwithstanding Subsection (a), the commission by rule set the amount of the bond for an operator of one or more bay or offshore wells at a reasonable amount that exceeds the amount provided by Subsection (a). SECTION 22. Amends Section 91.1041, Natural Resources Code, effective September 1, 2004, as follows: Sec. 91.1041. INDIVIDUAL BOND. (a) Authorizes a person required to file a bond, letter of credit, or cash deposit under Section 91.103 who operates one or more wells to file a bond in an amount equal to $2 for each foot of well depth for each well. (b) Requires that, notwithstanding Subsection (a), the commission by rule set the amount of the bond for an operator of one or more bay or offshore wells at a reasonable amount that exceeds the amount provided by Subsection (a). SECTION 23. Amends Section 91.1042, Natural Resources Code, as follows: Sec. 91.1042. BLANKET BOND. (a) Makes conforming changes. (b) Requires that, notwithstanding Subsection (a), the commission by rule set the amount of the bond for an operator of bay or offshore wells at a reasonable amount that exceeds the amount provided by Subsection (a)(1), (2), or (3), as applicable. SECTION 24. Amends Section 91.1042, Natural Resources Code, effective September 1, 2004, as follows: Sec. 91.1042. BLANKET BOND. (a) Makes conforming changes. (b) Requires that, notwithstanding Subsection (a), the commission by rule set the amount of the bond for an operator of bay or offshore wells at a reasonable amount that exceeds the amount provided by Subsection (a)(1), (2), or (3), as applicable. SECTION 25. Amends Section 91.107, Natural Resources Code, effective immediately, as follows: Sec. 91.107. New heading: NEW BOND. Requires that, notwithstanding Section 91.104, if an active or inactive well is transferred, sold, or assigned by its operator, the commission require the party acquiring the well to file a new bond as provided by Section 91.104(b)(1) or (2), and the financial security of the prior operator continue to be required and to remain in effect, and prohibits the commission from approving the transfer of operatorship, until the new bond is provided or the commission determines that the bond previously submitted to the commission by the person acquiring the well complies with this subchapter. Provides that a transfer of a well from one entity to another entity under common ownership is a transfer for purposes of this section. SECTION 26. Amends Section 91.107, Natural Resources Code, effective September 1, 2001, as follows: Sec. 91.107. New heading: NEW BOND, LETTER OF CREDIT, OR CASH DEPOSIT. Requires that, notwithstanding Section 91.104, if an active or inactive well is transferred, sold, or assigned by its operator, the commission require the party acquiring the well to file a new bond, letter of credit, or cash deposit as provided by Section 91.104(b)(1), (2), or (3), and the financial security of the prior operator continue to be required and to remain in effect, and prohibits the commission from approving the transfer of operatorship, until the new bond, letter of credit, or cash deposit is provided or the commission determines that the bond, letter of credit, or cash deposit previously submitted to the commission by the person acquiring the well complies with this subchapter. Provides that a transfer of a well from one entity to another entity under common ownership is a transfer for purposes of this section. SECTION 27. Amends Section 91.107, Natural Resources Code, effective September 1, 2004, as follows: Sec. 91.107. New heading: NEW BOND, LETTER OF CREDIT, OR CASH DEPOSIT. Requires that if an active or inactive well is transferred, sold, or assigned by its operator, the commission require the party acquiring the well to file a new bond, letter of credit, or cash deposit as provided by Section 91.104(b), and the financial security of the prior operator continue to be required and to remain in effect, and prohibits the commission from approving the transfer of operatorship, until the new bond, letter of credit, or cash deposit is provided or the commission determines that the bond, letter of credit, or cash deposit previously submitted to the commission by the person acquiring the well complies with this subchapter. Provides that a transfer of a well from one entity to another entity under common ownership is a transfer for purposes of this section. SECTION 28. Amends Section 91.108, Natural Resources Code, as follows: Sec. 91.108. New heading: DEPOSIT AND USE OF FUNDS. Requires that, subject to the refund provisions of Section 91.1091, proceeds from bonds and other financial security required pursuant to this chapter be deposited in the oil-field cleanup fund and, notwithstanding Sections 91.112 and 91.113, and are authorized to be used only for actual well plugging and surface remediation. SECTION 29. Amends Section 91.109, Natural Resources Code, effective September 1, 2004, as follows: Sec. 91.109. New heading: FINANCIAL SECURITY FOR PERSONS INVOLVED IN ACTIVITIES OTHER THAN OPERATION OF WELLS. (a) No changes. (b) Requires that in addition to the financial security requirements of Subsection (a) and Section 91.104(b), a person required to file a bond, letter of credit, or cash deposit under Section 91.103 who is involved in activities other than the operation of wells file the bond, letter of credit, or cash deposit at the time of filing or renewing an organization report required by Section 91.142 in an amount equal to $250,000 or a lesser amount determined by the commission if the person is able to demonstrate that the risk associated with an operation or group of operations warrants a lesser amount. SECTION 30. Amends Section 91.111, Natural Resources Code, by amending Subsections (b) and (c) and adding Subsection (e), as follows: (b) Requires the commission to certify to the comptroller the date on which the balance in the fund equals or exceeds $20, rather than $10 million. Prohibits the oil-field cleanup regulatory fees on oil and gas from being collected or required to be paid on or after the first day of the second month following the certification, except that the comptroller is required to resume collecting the fees on receipt of a commission certification that the fund has fallen below $10, rather than $6 million. Requires the comptroller to continue collecting the fees until collections are again suspended in the manner provided by this subsection. (c) Sets forth the composition of the fund. (e) Requires the commission, through the legislative appropriations request process, to establish specific performance goals for the oil-field cleanup fund for the next biennium, including certain specific goals. SECTION 31. Amends Section 91.112, Natural Resources Code, as follows: Sec. 91.112. PURPOSE OF THE FUND. (a) Authorizes money in the fund to be used by the commission or its employees or agents for certain purposes. (b) Requires the commission to submit to the legislature and make available to the public, annually, a report that reviews the extent to which money provided under Section 91.111 has enabled the commission to better protect the environment and enhance the income of the oil-field cleanup fund. Requires the report to include certain information. SECTION 32. Amends Chapter 91D, Natural Resources Code, by adding Sections 91.1131, 91.1132, and 91.1135, as follows: Sec. 91.1131. RISK ASSESSMENT STANDARDS. (a) Authorizes the commission by rule to establish risk assessment as the guide for certain activities. (b) Requires rules adopted under this section to provide for certain provisions. Sec. 91.1132. PRIORITIZATION OF HIGH-RISK WELLS. Requires the commission by rule to develop a system for carrying out certain actions. Sec. 91.1135. OIL-FIELD CLEANUP FUND ADVISORY COMMITTEE. (a) Defines "committee." (b) Sets forth the composition of the committee. (c) Provides that an appointed member of the committee serves at the will of the authority that appointed the member. (d) Requires the committee to perform certain duties. (e) Requires the commission to provide quarterly reports to the committee and the Legislative Budget Board that include certain information. (f) Authorizes the committee to perform certain duties. (g) Requires that not later than November 15 of each even-numbered year, the committee report to the governor, lieutenant governor, and speaker of the house of representatives on the committee's activities. Requires the report to include certain information. SECTION 33. Amends Section 91.142, Natural Resources Code, by adding Subsection (g), to require an organization report filed under this section to be accompanied by a certain fee. SECTION 34. Amends Chapter 91, Natural Resources Code, by adding Subchapter O, as follows: SUBCHAPTER O. RAILROAD COMMISSION VOLUNTARY CLEANUP PROGRAM Sec. 91.651. DEFINITIONS. Defines "contaminant," "environmental assessment," "response action," and "voluntary cleanup." Sec. 91.652. PURPOSE. Sets forth the purpose of the voluntary cleanup program. Sec. 91.653. ELIGIBILITY FOR VOLUNTARY CLEANUP PROGRAM. (a) Provided that any site that is contaminated with a contaminant is eligible for participation in the voluntary cleanup program except the portion of a site that may be subject to a commission order. (b) Requires a person electing to participate in the voluntary cleanup program to carry out certain actions. Sec. 91.654. APPLICATION TO PARTICIPATE IN VOLUNTARY CLEANUP PROGRAM. (a) Requires a person who desires to participate in the voluntary cleanup program under this subchapter to submit to the commission an application and an application fee as prescribed by this section. (b) Sets forth provisions relating to an application submitted under this section. (c) Requires the environmental assessment required by Subsection (b) to include certain information. (d) Requires an application to be processed in the order in which it is received. (e) Requires fees collected under this section to be deposited to the credit of the oil-field cleanup fund under Section 91.111. Sec. 91.655. REJECTION OF APPLICATION. (a) Authorizes the commission to reject an application submitted under Section 91.654 under certain conditions. (b) Requires that if an application is rejected because it is incomplete or inaccurate, the commission, not later than the 45th day after receipt of the application, provide the person with a list of all information needed to make the application complete or accurate. Authorizes a person to resubmit an application once without submitting an additional application fee if the person resubmits the application not later than the 45th day after the date the commission issues notice that the application has been rejected. (c) Requires the commission to carry out certain actions if the commission rejects the application. Sec. 91.656. VOLUNTARY CLEANUP AGREEMENT. (a) Requires that before the commission evaluates any plan or report detailing the remediation goals and proposed methods of remediation, the person desiring to participate in the voluntary cleanup program enter into a voluntary cleanup agreement that sets forth the terms and conditions of the evaluation of the reports and the implementation of work plans. (b) Requires a voluntary cleanup agreement to provide for certain things. (c) Requires the voluntary cleanup agreement to include certain information. (d) Sets forth provisions if an agreement is not reached between a person desiring to participate in the voluntary cleanup program and the commission on or before the 30th day after good faith negotiations have begun. (e) Prohibits the commission from initiating an enforcement action against a person who is in compliance with this section for the contamination or release that is the subject of the voluntary cleanup agreement or for activity that resulted in the contamination or release. Sec. 91.657. TERMINATION OF AGREEMENT; COST RECOVERY. (a) Authorizes the commission or the person in its sole discretion to terminate the agreement by giving 15 days' advance written notice to the other. Provides that only those costs incurred or obligated by the commission before notice of termination of the agreement are recoverable under the agreement if the agreement is terminated. (b) Provides that termination of the agreement does not affect any right the commission has under other law to recover costs. (c) Requires that if the person does not pay to the commission the state's costs associated with the voluntary cleanup before the 31st day after the date the person receives notice that the costs are due and owing, the attorney general, at the request of the commission, bring an action in the name of the state in Travis County to recover the amount owed and reasonable legal expenses, including attorney's fees, witness costs, court costs, and deposition costs. Sec. 91.658. VOLUNTARY CLEANUP WORK PLANS AND REPORTS. (a) Requires that after signing a voluntary cleanup agreement, the person prepare and submit the appropriate work plans and reports to the commission. (b) Requires the commission to review and evaluate the work plans and reports for accuracy, quality, and completeness. Authorizes the commission to approve a voluntary cleanup work plan or report or, if a work plan or report is not approved, notify the person concerning additional information or commitments needed to obtain approval. (c) Authorizes the commission, at any time during the evaluation of a work plan or report, to request the person to submit additional or corrected information. (d) Authorizes the commission, after considering future land use, to approve work plans and reports submitted under this section that do not require removal or remedy of all discharges, releases, and threatened releases at a site if the partial response actions for the property meet certain requirements. Sec. 91.659. CERTIFICATE OF COMPLETION. (a) Requires that if the commission determines that a person has successfully completed a voluntary cleanup approved under this subchapter, the commission certify that the action has been completed by issuing the person a certificate of completion. (b) Sets forth certain requirements for the certificate of completion. (c) Requires that if the commission determines that the person has not successfully completed a voluntary cleanup approved under this subchapter, the commission notify of this determination the person who undertook the voluntary cleanup and the current surface and mineral owner and mineral operator of the site that is the subject of the cleanup. Sec. 91.660. PERSONS RELEASED FROM LIABILITY. (a) Sets forth provisions relating to a person who is not a responsible person under Section 91.113 at the time the person applies to perform a voluntary cleanup. (b) Provides that a person who is not a responsible person under Section 91.113 at the time the commission issues a certificate of completion under Section 91.659 is released, on issuance of the certificate, from all liability to the state for cleanup of areas of the site covered by the certificate, except for releases and consequences that the person causes. (c) Provides that the release from liability provided by this section does not apply to certain persons. Sec. 91.661. PERMIT NOT REQUIRED. (a) Provides that a state or local permit is not required for removal or remedial action conducted on a site as part of a voluntary cleanup under this subchapter. A person shall coordinate a voluntary cleanup with ongoing federal and state waste programs. (b) Requires the commission by rule to require that the person conducting the voluntary cleanup comply with any federal or state standard, requirement, criterion, or limitation to which the remedial action would otherwise be subject if a permit were required. SECTION 35. Amends Sections 113.011, 113.014, 113.015, 113.0511, and 113.082, Natural Resources Code, as follows: Sec. 113.011. New heading: REGULATION OF LIQUEFIED PETROLEUM GAS ACTIVITIES. Requires the commission to administer and enforce the laws of this state and the rules and standards of the commission relating to liquefied petroleum gas. Sec. 113.014. EMPLOYEES. Makes a conforming change. Sec. 113.015. New heading: FUNDS FOR FINANCING REGULATION OF LPG ACTIVITIES. Requires the commission to look only to the revenue derived from the operation of this chapter and appropriated by the legislature for expenses of regulating liquefied petroleum gas activities and administering this chapter. Deletes language relating to the LPG examination fund. Sec. 113.0511. LIMITATIONS ON RULEMAKING AUTHORITY. (a) Prohibits the commission from adopting rules restricting advertising or competitive bidding by a licensee except to prohibit false, misleading, or deceptive practices. (b) Prohibits the commission in its rules to prohibit false, misleading, or deceptive practices, from including certain rules. Sec. 113.082. New heading: CATEGORIES OF LPG ACTIVITIES; FEES. (a) Makes conforming changes and deletes language relating to LPG application categories. (b) Requires the commission by rule to establish reasonable application and original license fees and renewal fees for each type of license listed in this section. SECTION 36. Amends Sections 113.084(b) and (c), Natural Resources Code, to make conforming changes. SECTION 37. Amends Section 113.087, Natural Resources Code, by amending Subsections (b), (c), and (i) through (m) and adding Subsections (n) and (o), as follows: (b) Makes a conforming change. (c) Makes a conforming change. (i) Requires that not later than the 30th day after the date a person takes a licensing examination under this chapter, the commission notify the person of the results of the examination. (j) Sets forth provisions if the examination is graded or reviewed by a testing service. (k) Authorizes the commission to require a testing service to notify a person of the results of the person's examination. (l) Makes conforming changes. (m) Requires the commission, by appropriate rule, to require, in addition to examination requirements as set out in Subsections (b), (c), and (d) of this section, certain other requirements. (n) Makes conforming changes and requires that if an initial course of instruction is established by the commission, it be available at least once every 180, rather than 90, days. (o) No changes. SECTION 38. Amends Sections 113.089(a) and (c), Natural Resources Code, to make conforming changes. SECTION 39. Amends Sections 113.090(a) and (b), Natural Resources Code, to make conforming changes. SECTION 40. Amends Sections 113.091(b), (c), and (d), Natural Resources Code, to make conforming changes. SECTION 41. Amends Section 113.093, Natural Resources Code, as follows: Sec. 113.093. LICENSE RENEWAL. (a) Authorizes a person who is otherwise eligible to renew a license to renew an unexpired license by paying the required renewal fee to the commission before the expiration date of the license. Prohibits a person whose license has expired from engaging in activities that require a license until the license has been renewed. (b) Authorizes a person whose license has been expired for 90 days or to renew the license by paying to the commission a renewal fee that is equal to 1-1/2 times the normally required renewal fee. (c) Makes conforming changes. (d) Makes conforming changes. (e) Authorizes a person who was licensed in this state, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of application to obtain a new license without reexamination. Requires the person to pay to the commission a fee that is equal to two times the normally required renewal fee for the license. (f) Requires that not later than the 30th day before the date a person's license is scheduled to expire, the commission send written notice of the impending expiration to the person at the person's last known address according to the records of the commission. (g) Provides that a renewal license will be issued to a licensee as soon as is practicable after compliance with this section, and fulfillment of insurance, examination, and seminar requirements established by this chapter, and submission of any information and data the commission may reasonably require. (h) Requires renewal fees to be nonrefundable. SECTION 42. Amends Chapter 113D, Natural Resources Code, by adding Section 113.096, as follows: Sec. 113.096. PROVISIONAL LICENSE. (a) Authorizes the commission to issue a provisional license to an applicant currently licensed in another jurisdiction who seeks a license in this state and who meets certain other requirements. (b) Authorizes the commission to waive the requirement of Subsection (a)(3) for an applicant if the commission determines that compliance with that subsection would be a hardship to the applicant. (c) Provides that a provisional license is valid until the date the commission approves or denies the provisional license holder's application for a license. Requires the commission to issue a license under this chapter to the provisional license holder under certain conditions. (d) Requires the commission to approve or deny a provisional license holder's application for a license not later than the 180th day after the date the provisional license is issued. Authorizes the commission to extend the 180-day period if the results of an examination have not been received by the commission before the end of that period. (e) Authorizes the commission to establish a fee for provisional licenses in an amount reasonable and necessary to cover the cost of issuing the license. SECTION 43. Amends Sections 113.097(d) and (h), Natural Resources Code, to make conforming changes. SECTION 44. Amends Sections 113.098(a) and (c), Natural Resources Code, to make conforming changes. SECTION 45. Amends Sections 113.099(a) through (d), Natural Resources Code, to make conforming changes. SECTION 46. Amends the heading to Chapter 113F, Natural Resources Code, to read as follows: SUBCHAPTER F. DISCIPLINARY ACTION SECTION 47. Amends Section 113.161(e), Natural Resources Code, to make conforming changes. SECTION 48. Amends Section 113.163, Natural Resources Code, as follows: Sec. 113.163. FINDINGS AND JUDGMENT. (a) Requires the commission to revoke, suspend, or refuse to renew a license or registration or to reprimand a licensee or registrant if the commission finds that the licensee or registrant has violated or failed to comply with or is violating or failing to comply with this chapter or a rule or standard promulgated and adopted under this chapter. Deletes language relating to the commission suspending the license or registration for a definite period not to exceed 90 days. (b) Authorizes the commission to place on probation a person whose license or registration is suspended. Authorizes the commission to require the person to carry out certain actions if a license or registration suspension is probated SECTION 49. Amends Section 113.233(b), Natural Resources Code, to make conforming changes. SECTION 50. Amends Section 113.243(b), Natural Resources Code, as amended by Section 2, Chapter 496, Acts of the 75th Legislature, Regular Session, 1997, to add language to provide that the fund consists of money from fees, royalties, or other things of value received from the items described by Subsections (f)(1)(A)-(D). SECTION 51. Amends Section 113.243, Natural Resources Code, by amending Subsections (c) and (d) and adding Subsections (f) and (g), as follows: (c) Makes a conforming change. (d) Makes conforming changes. (f) Authorizes the commission to carry out certain actions. (g) Requires money received under Subsection (f) to be deposited in a separate account in the fund as provided by Subsection (d), except that any money received by the commission from the items described by Subsections (f)(1)(E)-(H) is to be deposited in the general revenue fund. SECTION 52. Amends Chapter 113J, Natural Resources Code, as added by Chapter 80, Acts of the 73rd Legislature, Regular Session, 1993, by redesignating it as Subchapter K, and amending the heading to that subchapter to read as follows: SUBCHAPTER K. LIABILITY OF LICENSE HOLDER SECTION 53. Amends Chapter 113, Natural Resources Code, by adding Subchapter L, as follows: SUBCHAPTER L. TESTING OF LP-GAS SYSTEMS IN SCHOOL FACILITIES Sec. 113.351. DEFINITIONS. Defines "school district" and "supplier." Sec. 113.352. DUTY TO TEST FOR LEAKAGE. (a) Requires each school district to perform pressure tests for leakage on the LP-gas piping system in each school district facility at least biennially. Requires the tests to be performed before the beginning of the school year. (b) Authorizes the school district to perform the pressure tests on a two-year cycle under which the tests are performed for the LP-gas piping systems of approximately one-half of the facilities each year. (c) Requires that if a school district operates one or more school district facilities on a year-round calendar, the pressure test in each of those facilities be conducted and reported not later than July 1 of the year in which the test is performed. (d) Provides that a test performed under a municipal code satisfies the pressure testing requirements prescribed by this section. Sec. 113.353. REQUIREMENTS OF TEST. (a) Requires the school district to perform the pressure test to determine whether the LP-gas piping system holds at least the amount of pressure specified by the National Fire Protection Association 54, National Fuel Gas Code. (b) Requires the pressure test to be conducted in accordance with National Fire Protection Association 54. (c) Requires that, at the request of a school district, the commission assist the district in providing for the certification of an employee of the school district or school, as applicable, to conduct the test and in developing a procedure for conducting the test. Sec. 113.354. NOTICE OF TEST. (a) Requires a school district to provide written notice to the commission specifying the date and the result of each pressure test or other inspection of the LP-gas piping system. (b) Requires that before the introduction of any LP-gas into the LP-gas piping system, the school district provide verification to the district's supplier that the piping has been tested in accordance with this subchapter. (c) Requires the commission to maintain a copy of the notice provided under Subsection (a) until at least the first anniversary of the date the commission received the notice. Sec. 113.355. TERMINATION OF SERVICE. Requires a supplier to terminate service to a school district facility under certain conditions. Sec. 113.356. REPORT TO BOARD OF TRUSTEES. Requires an identified LP-gas leakage in a school district facility to be reported to the board of trustees of the district in which the facility is located. Sec. 113.357. ENFORCEMENT. Requires the commission to enforce this subchapter. SECTION 54. Amends Chapter 116B, Natural Resources Code, by adding Section 116.016, as follows: Sec. 116.016. LIMITATIONS ON RULEMAKING AUTHORITY. (a) Prohibits the commission from adopting rules restricting advertising or competitive bidding by a licensee or registrant except to prohibit false, misleading, or deceptive practices. (b) Prohibits the commission, in its rules to prohibit false, misleading, or deceptive practices, from including certain rules. SECTION 55. Amends Section 116.032(b), Natural Resources Code, to authorize the commission by rule to establish reasonable fees for each category of license. Deletes language authorizing a license fee from exceeding $1,000. SECTION 56. Amends Section 116.033, Natural Resources Code, as follows: Sec. 116.033. APPLICATION AND RENEWAL PROCEDURES. (a) Requires the commission to adopt rules establishing procedures for submitting and processing applications for issuance and renewal of licenses and for registration. (b) Authorizes a person who is otherwise eligible to renew a license or registration to renew an unexpired license or registration by paying the required renewal fee to the commission before the expiration date of the license or registration. Prohibits a person whose license or registration has expired from engaging in activities that require a license or registration until the license or registration has been renewed. (c) Authorizes a person whose license or registration has been expired for 90 days or less to renew the license or registration by paying to the commission a renewal fee that is equal to 1-1/2 times the normally required renewal fee. (d) Authorizes a person whose license or registration has been expired for more than 90 days but less than one year to renew the license or registration by paying to the commission a renewal fee that is equal to two times the normally required renewal fee. (e) Prohibits a person whose license or registration has been expired for one year or more from renewing the license or registration. Authorizes the person to obtain a new license or registration by complying with the requirements and procedures, including the examination requirements, for obtaining an original license or registration. (f) Authorizes a person who was licensed or registered in this state, moved to another state, and is currently licensed or registered and has been in practice in the other state for the two years preceding the date of application to obtain a new license or registration without reexamination. Requires the person to pay to the commission a fee that is equal to two times the normally required renewal fee for the license or registration. (g) Requires the commission, not later than the 30th day before the date a person's license or registration is scheduled to expire, to send written notice of the impending expiration to the person at the person's last known address according to the records of the commission. SECTION 57. Amends Section 116.034, Natural Resources Code, by adding Subsections (d) through (h), as follows: (d) Requires the commission, not later than the 30th day after the date a person takes a licensing or registration examination under this chapter, to notify the person of the results of the examination. (e) Sets forth provisions if the examination is graded or reviewed by a testing service. (f) Authorizes the commission to require a testing service to notify a person of the results of the person's examination. (g) Requires the commission, if requested in writing by a person who fails a licensing or registration examination administered under this chapter, to furnish the person with an analysis of the person's performance on the examination. (h) Requires the commission to recognize, prepare, or administer continuing education programs for its licensees and registrants. Requires a licensee or registrant to participate in the programs to the extent required by the commission to keep the person's license. SECTION 58. Amends Chapter 116C, Natural Resources Code, by adding Sections 116.0345 and 116.0346, as follows: Sec. 116.0345. LICENSE OR REGISTRATION BY ENDORSEMENT. Authorizes the commission to waive any prerequisite to obtaining a license or registration for an applicant after reviewing the applicant's credentials and determining that the applicant holds a license or registration issued by another jurisdiction that has licensing requirements substantially equivalent to those of this state. Sec. 116.0346. PROVISIONAL LICENSE OR REGISTRATION. (a) Authorizes the commission to issue a provisional license or registration to an applicant currently licensed or registered in another jurisdiction who seeks a license or registration in this state and who meets certain other requirements. (b) Authorizes the commission to waive the requirement of Subsection (a)(3) for an applicant if the commission determines that compliance with that subsection would be a hardship to the applicant. (c) Provides that a provisional license or registration is valid until the date the commission approves or denies the provisional license or registration holder's application for a license or registration. Requires the commission to issue a license or registration under this chapter to the provisional license or registration holder under certain conditions. (d) Requires the commission to approve or deny a provisional license or registration holder's application for a license or registration not later than the 180th day after the date the provisional license or registration is issued. Authorizes the commission to extend the 180-day period if the results of an examination have not been received by the commission before the end of that period. (e) Authorizes the commission to establish a fee for provisional licenses or registrations in an amount reasonable and necessary to cover the cost of issuing the license or registration. SECTION 59. Amends the heading to Section 116.037, Natural Resources Code, to read as follows: Sec. 116.037. DISCIPLINARY ACTION. SECTION 60. Amends Section 116.037, Natural Resources Code, by amending Subsections (f) and (g) and adding Subsection (h), as follows: (f) Requires the commission to revoke, suspend, or refuse to renew a license or registration or to reprimand the licensee or registrant if the commission finds that the licensee or registrant has violated or failed to comply with or is violating or failing to comply with this chapter or a rule adopted under this chapter. Deletes language authorizing the commission to suspend the license or registration for a definite period not to exceed 90 days or to revoke the license. (g) Authorizes the commission to place on probation a person whose license or registration is suspended. Authorizes the commission, if a license or registration suspension is probated, to require the person to carry out certain actions. (h) Entitles any party to a proceeding before the commission to judicial review under the substantial evidence rule. SECTION 61. Amends Section 117.012, Natural Resources Code, by adding Subsections (h) through (k), as follows: (h) Requires the commission to require operators or their designated representatives to communicate and conduct liaison activities with fire, police, and other appropriate public emergency response officials. Requires the liaison activities to be conducted by meetings in person except as provided by this section. Authorizes an operator or the operator's representative to conduct required community liaison activities as provided by Subsection (i) only if the operator or the operator's representative has made certain efforts to conduct a community liaison meeting in person with the officials. (i) Requires that if the operator or operator's representative cannot arrange a meeting in person after complying with Subsection (h), the operator or the operator's representative make certain efforts to conduct community liaison activities by means of a telephone conference call with the officials. (j) Authorizes the community liaison information required to be conveyed to be delivered by mailing the information by certified mail, return receipt requested, if the operator or the operator's representative has made the efforts required by Subsections (h) and (i) but has not successfully arranged a meeting in person or a telephone conference. (k) Requires the commission by rule to require the owner or operator of each interstate or intrastate hazardous liquid or carbon dioxide pipeline facility any part of which is located within 1,000 feet of a public school to perform certain duties. SECTION 62. Amends Title 3D, Natural Resources Code, by adding Chapter 118, as follows: CHAPTER 118. PIPELINE ASSESSMENT AND TESTING Sec. 118.001. AUTHORITY TO REQUIRE PLAN FOR PIPELINE ASSESSMENT OR TESTING. (a) Authorizes the commission by rule to require an operator to file for commission approval a plan for assessment or testing of a pipeline under certain conditions. (b) Authorizes the commission to take enforcement action against a person who fails to meet certain requirements. Sec. 118.002. PIPELINES FOR WHICH PLAN MAY BE REQUIRED. Authorizes the rules adopted under this chapter to apply to interstate pipelines, intrastate pipelines, portions of pipeline systems the regulation of which the federal government has temporarily delegated to the commission, or gathering lines, and to pipelines for the transportation of any substance or material under the jurisdiction of the commission, as specified by the commission. Sec. 118.003. CONTENTS OF PLAN. Authorizes the rules adopted under this chapter to require that a plan include certain criteria. Sec. 118.004. APPROVAL OF PLAN. Authorizes the commission to approve a plan that complies with rules adopted under this chapter. Sec. 118.005. CONSEQUENCES OF PLAN APPROVAL. Provides that the approval of a plan by the commission does not constitute a certification or representation that the pipeline is in compliance with or exempt from applicable safety standards. SECTION 63. Amends Section 102.001, Utilities Code, as follows: Sec. 102.001. RAILROAD COMMISSION JURISDICTION. (a) Provides that the commission has exclusive original jurisdiction over the rates and services of a gas utility that meets certain requirements. (b) Provides that the commission has exclusive appellate jurisdiction to review an order or ordinance of a municipality exercising exclusive original jurisdiction as provided by this subtitle. SECTION 64. Amends Chapter 102A, Utilities Code, by adding Section 102.006, as follows: Sec. 102.006. POWERS AND DUTIES OF STATE OFFICE OF ADMINISTRATIVE HEARINGS. (a) Requires the utility division of the State Office of Administrative Hearings to conduct each hearing in a contested case that is not conducted by one or more members of the commission. Requires a hearing to be conducted in accordance with the rules and procedures adopted by the railroad commission. (b) Authorizes the commission to delegate to the utility division of the State Office of Administrative Hearings the authority to make a final decision and to issue findings of fact, conclusions of law, and other necessary orders in a proceeding in which there is not a contested issue of fact or law. (c) Requires the commission by rule to define the procedures by which it delegates final decision-making authority under Subsection (b). (d) Provides that, for purposes of judicial review, an administrative law judge's final decision under Subsection (b) has the same effect as a final decision of the commission unless a member of the commission requests formal review of the decision. SECTION 65. Amends Section 103.001, Utilities Code, to provide that to provide fair, just, and reasonable rates and adequate and efficient services, the governing body of a municipality has exclusive original jurisdiction over the rates, operations, and services of a gas utility within the municipality, subject to the limitations imposed by this subtitle, unless the municipality surrenders its jurisdiction to the railroad commission under Section 103.003. SECTION 66. Amends Chapter 103A, Utilities Code, by adding Section 103.003, as follows: Sec. 103.003. SURRENDER OF MUNICIPAL JURISDICTION TO RAILROAD COMMISSION; REINSTATEMENT OF JURISDICTION. (a) Authorizes a municipality to elect to have the commission exercise exclusive original jurisdiction over gas utility rates, operations, and services in the municipality by ordinance or by submitting the question of the surrender of its jurisdiction to the voters at a municipal election. (b) Requires the governing body of a municipality to submit at a municipal election the question of surrendering its jurisdiction to the commission if the governing body receives a petition signed by a number of qualified voters of the municipality equal to at least the lesser of 20,000 or 10 percent of the number of voters voting in the last preceding general election in the municipality. (c) Prohibits a municipality from electing to surrender its jurisdiction while a case involving the municipality is pending. (d) Authorizes a municipality that surrenders its jurisdiction to the commission to reinstate its jurisdiction. Provides that the provisions of this section governing the surrender of jurisdiction apply to the reinstatement of jurisdiction. SECTION 67. Amends Section 104.107, Utilities Code, by amending Subsection (b) and adding Subsection (c), as follows: (b) Requires the 150-day period prescribed by Subsection (a)(2) to be extended for two days for each day the actual hearing on the merits of the case exceeds 15 days. (c) Provides that if the regulatory authority does not make a final determination concerning a schedule of rates before expiration of the applicable suspension period, the regulatory authority is considered to have approved the schedule. This approval is subject to the authority of the regulatory authority thereafter to continue a hearing in progress. SECTION 68. Amends Chapter 104F, Utilities Code, by adding Section 104.2551, as follows: Sec. 104.2551. ELECTRONIC BILLING. Authorizes a gas utility or municipally owned utility to transmit the utility's bill for services through the Internet or by other electronic means instead of through the United States mail on the request of a customer of the gas utility or municipally owned utility. SECTION 69. Amends Section 121.103, Utilities Code, by amending Subsection (a) and adding Subsection (d) as follows: (a) Provides that a gas utility that provides gas to a customer does not have an obligation to serve the customer or to maintain the gas supply or physical capacity to serve the customer if the customer meets certain requirements. (d) Provides that, notwithstanding Subsection (a), a gas utility that has provided gas to a commercial customer is obligated to serve that customer if the gas utility has a sufficient gas supply and physical capacity to do so without reducing service to its other customers. SECTION 70. Amends Section 121.2015, Utilities Code, as follows: Sec. 121.2015. REQUIRED SAFETY RULES. (a) Requires the commission to adopt rules regarding public education and awareness relating to gas pipeline facilities and community liaison for responding to an emergency relating to a gas pipeline facility. (b) Requires the commission to require operators or their designated representatives to communicate and conduct liaison activities with fire, police, and other appropriate public emergency response officials. Requires the liaison activities to be conducted by meetings in person except as provided by this section. Authorizes an operator or the operator's representative to conduct required community liaison activities as provided by Subsection (c) only if the operator or the operator's representative has made an effort to conduct a community liaison meeting in person with the officials by certain methods. (c) Requires that if the operator or operator's representative cannot arrange a meeting in person after complying with Subsection (b), the operator or the operator's representative make an effort to conduct community liaison activities by means of a telephone conference call with the officials by certain methods. (d) Authorizes the community liaison information required to be conveyed to be delivered by mailing the information by certified mail, return receipt requested if the operator or the operator's representative has made the efforts required by Subsections (b) and (c) but has not successfully arranged a meeting in person or a telephone conference. SECTION 71. Amends Section 121.206, Utilities Code, by amending Subsection (c) and adding Subsection (d), as follows: (c) Requires that, in determining the amount of the penalty, the commission consider the guidelines adopted under Subsection (d). (d) Requires the commission by rule to adopt guidelines to be used in determining the amount of a penalty under this subchapter. Requires the guidelines to include a penalty calculation worksheet that specifies the typical penalty for certain violations, circumstances justifying enhancement of a penalty and the amount of the enhancement, and circumstances justifying a reduction in a penalty and the amount of the reduction. Requires the guidelines to take into account certain factors. SECTION 72. Amends the heading to Chapter 121J, Utilities Code, to read as follows: SUBCHAPTER J. TESTING OF NATURAL GAS PIPING SYSTEMS IN SCHOOL FACILITIES SECTION 73. Amends Chapter 121J, Utilities Code, by adding Section 121.5005, as follows: Sec. 121.5005. APPLICABILITY. Provides that this subchapter applies to a facility of a public elementary or secondary school, including a charter school, or a private elementary or secondary school, but does not apply to a home school. SECTION 74. Amends Sections 121.501 through 121.506, Utilities Code, as follows: Sec. 121.501. DEFINITION. Redefines "supplier." Sec. 121.502. DUTY TO PRESSURE TEST. (a) Requires a person responsible for a school facility to perform biennial pressure tests on the natural gas piping system in the school facility. Requires the tests to be performed before the beginning of the school year. (b) Makes conforming changes. (c) Makes conforming changes. (d) Provides that a natural gas piping pressure test performed under a municipal code satisfies the pressure testing requirements prescribed by this section. Sec. 121.503. REQUIREMENTS OF TEST. Makes conforming changes. Sec. 121.504. NOTICE OF TEST. Makes conforming changes. Sec. 121.505. TERMINATION OF SERVICE. (a) Requires a supplier to terminate service to a school facility under certain conditions. (b) Provides that a supplier is not liable for any damages that result from a failure to terminate service as required by Subsection (a)(2) for a facility other than a school district facility. Sec. 121.506. New heading: REPORT OF LEAKAGE. Requires an identified natural gas leakage in a school district facility must be reported to the board of trustees of the district in which the facility is located. Requires an identified natural gas leakage in another school facility to be reported to the person responsible for the school facility. SECTION 75. Amends Chapter 2003C, Government Code, by adding Section 2003.0491, as follows: Sec. 2003.0491. RAILROAD COMMISSION HEARINGS. Requires the utility division to conduct contested case hearings and authorizes that division to make final decisions and issue findings of fact, conclusions of law, and other necessary orders in other proceedings on behalf of the commission as provided by Section 102.006, Utilities Code. Provides that Section 2003.049 applies to a proceeding under this section except as otherwise provided by Section 102.006, Utilities Code. SECTION 76. Repealers: (1) Chapter 93, Natural Resources Code; (2) Section 113.002(2), and Sections 113.012 and 113.013, Natural Resources Code; (3) Section 113.243(b), Natural Resources Code, as amended by Section 1, Chapter 496, Acts of the 75th Legislature, Regular Session, 1997; and (4) Section 113.246, Natural Resources Code, as amended by Section 6, Chapter 496, Acts of the 75th Legislature, Regular Session, 1997. SECTION 77. (a) Effective date: September 1, 2001, except as otherwise provided by this Act. (a) Makes application of this Act prospective. (c) Provides that SECTION 25 of this Act takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. Provides that if this Act does not receive the vote necessary for immediate effect, that section does not take effect. (d) Provides that the changes in law made by Sections 91.104, 91.107, and 91.109, Natural Resources Code, as amended by this Act, apply only to a person required on or after the effective date of the applicable amendment to file a bond or alternate form of financial security. Provides that a person required to file a bond or alternate form of financial security before that date is governed by the law in effect on the date the bond or other security is required to be filed, and the former law is continued in effect for that purpose. (e) Provides that this Act prevails over any conflicting or inconsistent provision of H.B. No. 1317, 77th Legislature, Regular Session, 2001, if that bill is enacted and becomes law. (f) Requires that, as soon as practicable on or after the effective date of this Act, the governor, lieutenant governor, and speaker of the house of representatives appoint members to the Oil-Field Cleanup Fund Advisory Committee as provided by Section 91.1135, Natural Resources Code, as added by this Act. (g) Provides that Chapter 113L, Natural Resources Code, as added by this Act, applies beginning with the 2002-2003 school year, and requires each school district that uses liquefied petroleum gas to perform pressure tests as required by that subchapter. (h) Provides that Section 102.006, Utilities Code, as added by this Act, and Section 2003.0491, Government Code, as added by this Act, apply only to a contested case filed at the Railroad Commission of Texas on or after the effective date of this Act. Provides that a contested case filed at the commission before that date is governed by the law in effect at the time the case is filed, and the former law is continued in effect for that purpose.