SRC-MKV S.B. 310 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 310
77R1055 SMH-DBy: Harris
Natural Resources
3/19/2001
As Filed


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 underwent such
a review and S.B. 310 is a result of that review.  As proposed, S.B. 310
continues the Railroad Commission for another twelve years and makes
statutory which were recommended by the commission. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Railroad Commission
in SECTIONS 3 (Section 81.0531, Natural Resources Code), 4 (Section 81.116,
Natural Resources Code), 5 (Section 81.117, Natural Resources Code), 6
(Section 85.2021, Natural Resources Code), 10 (Sections 91.1041 and
91.1042, Natural Resources Code), 14 (Sections 91.1131 and 91.1132, Natural
Resources Code), 15 (Section 91.142, Natural Resources Code), 16 (Section
101.019, Natural Resources Code), 29 (Section 118.001, Natural Resources
Code), 30 (Section 102.006, Utilities Code), 31 (Section 104.009, Utilities
Code), and 33 (Section 121.206, Utilities Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Articles 6445a, 6447b, 6447c, and 6447h, V.T.C.S., 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. 6447b.  New heading:  EQUAL EMPLOYMENT OPPORTUNITY.  (a) 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.  Deletes language relating to the
commission or its designee developing an intra-agency career ladder program
and a system of annual performance evaluations. 

(b) Requires the policy statement to include personnel policies, including
policies relating to recruitment, evaluation, selection, training, and
promotion of personnel, that show the intent of the commission to avoid the
unlawful employment practices described by Chapter 21 (Employment
Discrimination), Labor Code, and an analysis of the extent to which the
composition of the commission's personnel is in accordance with state and
federal law and a description of reasonable methods to achieve compliance
with state and federal law.  Deletes reference to appointment of personnel
from the list of items required to be included in the policy statement. 
 
(c)  Requires the policy statement to be updated annually, be reviewed by
the state Commission on Human Rights for compliance with Subsection (b) of
this article, and be  filed with the governor's office.  Deletes language
relating to the plan including steps to overcome any identified
under-utilization of minorities and women in the commission's workforce. 

 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 for the federal Fair Labor Standards Act of 1938 (29 U.S.C.
Section 201 et. seq.) and its subsequent amendments, if the person or the
person's spouse is an officer, employee, or paid consultant of a trade
association in a business or industry regulated by the commission. Makes
nonsubstantive and conforming changes. 

  (d)  Makes a conforming change.

Art. 6447h.  COMPLAINTS.  (a) Requires the commission to 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) Deletes language relating to a complaint filed against a person who has
a license, permit, or certificate of public convenience and necessity from
the commission.  Deletes language  providing that this section does not
apply to complaints under Chapter 91, Natural Resources Code.  Makes
conforming changes. 

SECTION 2. Amends Title 112,V.T.C.S., by adding Articles 6447k, 6447l, and
6447m, as follows: 
 
Art. 6447k.  SEPARATION OF POLICYMAKING AND MANAGEMENT RESPONSIBILITIES.
Requires the commission to develop and implement policies that clearly
separate the policymaking 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 agency employees information and training on the benefits and
methods of participation in the State Employee Incentive Program. 

SECTION 3. Amends Section 81.0531, Natural Resources Code, by amending
Subsections (c) and (d) and adding Subsection (e), as follows: 
 
(c) Adds language to require the commission to consider the guidelines
adopted under Subsection (d) 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. 
 
(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 circumstances. 
  
(e)  Requires a penalty collected under this section to be deposited to the
credit of the oil-field cleanup fund. 

SECTION 4.  Amends Section 81.116(a), Natural Resources Code, to provide
that an oil-field cleanup regulatory fee is imposed on crude petroleum in
this state in an amount set by commission rule not to exceed one cent on
each barrel of 42 standard gallons.  Deletes reference to the amount of the
fee being five-sixteenths of one cent on each barrel of 42 standard
gallons. 

SECTION 5.  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 an amount set by commission rule not to
exceed one-tenth of one cent for each thousand cubic feet.  Deletes
reference to the amount of the fee being one-thirtieth of one cent for each
thousand cubic feet. 

SECTION 6.  Amends Section 85.2021, Natural Resources Code, by amending
Subsections (c) and (d) and adding Subsection (e), as follows: 

(c) Changes from $100 to $300 the amount of a nonrefundable fee paid to the
commission by an applicant for an extension of time to plug a well. 

(d) Requires the commission, notwithstanding Subsections (a) and (b), by
rule to set fees under those subsections in amounts that are projected to
generate in the aggregate annual revenue of $1.5 million more than the
aggregate annual revenue projected to be generated by the fee amounts
provided by those subsections. 

(e) Requires all fees collected under this section to be deposited in the
state oil-field cleanup fund. 

SECTION 7.  Amends Section 91.103, Natural Resources Code, effective
September 1, 2004, as follows: 

Sec. 91.103.  New heading: PERSONS REQUIRED TO EXECUTE BOND.  Deletes
language relating to an alternative form of financial security required to
be filed with the commission by any person, including any firm,
partnership, joint stock association, corporation, or other organization. 

SECTION 8.  Amends Sections 91.104(b) and (c), Natural Resources Code, to
delete language relating to a nonrefundable annual fee of $100 paid by a
person required to file a bond under Section 91.103, and deletes language
relating to such a person giving a first lien on certain tangible personal
property associated with oil and gas production. 

SECTION 9.  Amends Section 91.104, Natural Resources Code, effective
September 1, 2004, as follows: 

Sec. 91.104.  New heading: BONDS.  (b) Deletes language relating to a
nonrefundable annual fee of $100 paid by a person required to file a bond
under Section 91.103, deletes language relating to a nonrefundable annual
fee equal to three percent of the bond that would otherwise be required,
and deletes language relating to such a person giving a first lien on
certain tangible personal property associated with oil and gas production.
Deletes Subsection (c) relating to a person who chooses to file a form of
financial security other than a bond. 

SECTION 10.  Amends Sections 91.1041 and 91.1042, Natural Resources Code,
as follows: 

 Sec. 91.1041.  (b)  Requires the commission, notwithstanding Subsection
(a), by rule to set the amount of an individual bond for an operator of one
or more bay or offshore wells at a reasonable amount that exceeds the
amount provided by Subsection (a). 

Sec. 91.1042.  (b) Requires the commission, notwithstanding Subsection (a),
by rule to set the amount of a blanket 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 11.  Amends Section 91.107, Natural Resources Code, effective
September 1, 2004, as follows: 

 Sec. 91.107.  New heading:  NEW BOND.  Makes conforming changes.

SECTION 12.  Amends Section 91.111, Natural Resources Code, to change from
$10 million to $20 million the value the balance of the fund must reach
before the commission is required to certify to the comptroller the date on
which it reaches that value.  Adds language relating to the contents of the
fund to include fees collected under Sections 91.142 and 91.1132.  Adds a
new Subsection (e) to require 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 goals. 

SECTION 13.  Amends Section 91.112(b), Natural Resources Code, to add
language to require the commission to make available to the public 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.  Adds language to require the report to
include the region in which certain wells are located, the number of
surface locations remediated, and a detailed accounting of certain
expenditures of money in the fund. 

SECTION 14.  Amends Chapter 91D, Natural Resources Code, by adding Sections
91.1131 and 91.1132, as follows: 
 
Sec. 91.1131.  RISK ASSESSMENT STANDARDS; PRIORITIZATION OF HIGH-RISK
WELLS. (a)  Requires the commission by rule to establish risk assessment as
the guide for conducting site investigations and environmental assessments
and controlling and cleaning up oil and gas wastes and other substances and
materials. 
 
  (b) Requires rules adopted under this section to provide for certain
provisions. 
 
(c)  Requires the commission by rule to develop a system for identifying
abandoned wells that pose a high risk of contaminating surface water or
groundwater;  periodically testing high-risk wells by conducting a fluid
level test or, if necessary, a pressure test; and giving priority to
plugging high-risk wells with compromised casings. 
 
Sec. 91.1132.  VOLUNTARY CLEANUP PROGRAM. (a)  Requires the commission by
rule to establish a voluntary cleanup program under which a person who is
not a responsible person as defined by Section 91.113 and who cleans up oil
and gas wastes or other substances or materials in accordance with an
agreement with the commission may receive from the commission a certificate
evidencing completion of the cleanup.  Provides that on receipt of the
certificate, the person is released from all liability to the commission
for cleanup of the site covered by the certificate. 
 
(b)  Requires a person who desires to participate in the program to submit
to the commission an application and an application fee in an amount set by
commission rule. 
 
(c)  Requires the staff of the commission to assist a participant in the
program in developing a cleanup plan and provide technical oversight during
the cleanup. 
  
(d)  Requires the program established under this section to be consistent
with rules adopted under Section 91.1131. 

SECTION 15.  Amends Section 91.142, Natural Resources Code, by adding
Subsection (g) to require the commission by rule to require an organization
report filed under this section to be accompanied by a fee set by the
commission in an amount sufficient to cover the cost of administering this
section.  Prohibits the commission from setting a fee under this subsection
in an amount that is projected to generate annual revenue of more than $3
million. 
 
SECTION 16.  Amends Chapter 101B, Natural Resources Code, by adding Section
101.019, as follows: 
 
Sec. 101.019.  MANDATORY UNITIZATION. (a)  Requires the commission to adopt
rules authorizing mandatory unitization, notwithstanding the other
provisions of this chapter. 
 
(b)  Requires the rules to authorize a working interest owner to file an
application with the commission on a form prescribed by the commission for
approval of a waterflood, enhanced oil recovery project, or tertiary
recovery project affecting all or part of an oil field, gas field, or oil
and gas field. 
 
(c)  Authorizes the commission to approve the application if, after notice
and hearing, the commission determines that the waterflood, enhanced oil
recovery project, or tertiary recovery project meets certain requirements. 
 
(d)  Provides that if the commission approves the application, the owners
of all the interests in the area covered by the application are bound by
the terms of the proposed waterflood, enhanced oil recovery project, or
tertiary recovery project. 
 
(e)  Requires the commission, in adopting rules under this section, to take
into consideration those procedures used by agencies or commissions of
other states having similar authority over the regulation of oil and gas
matters. 

SECTION 17.  Amends Section 113.0511, Natural Resources Code, to change a
reference from "person regulated by the commission" to "licensee" and make
conforming changes. 

SECTION 18.  Amends Section 113.087, Natural Resources Code, by amending
Subsections (i)-(m) and adding Sections (n) and (o), as follows: 

(i) Requires the commission to notify a person of the results of a
licensing examination, not later than the 30th day after the date the
person takes the examination under this chapter.   

(j) Adds language to require the commission, if the examination is graded
or reviewed by a testing service, to notify the person of the results of
the examination not later than the 14th day after the date the commission
receives the results from the 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 a conforming change.

(m) Changes the language to require, rather than authorize, the commission,
by appropriate rule, to require certain requirements in addition to the
examination. 

 Redesignates Subsections (l) and (m) as (n) and (o).
 
SECTION 19.  Amends Section 113.093, Natural Resources Code, as follows:

(a) Adds language to authorize 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.  Deletes language relating to a
license issued pursuant to this chapter. 

(c) Changes language to authorize a person whose license has been expired
for more than 90 days but less than one year, rather than two years, to
renew the license by paying to the commission a renewal fee, rather than
all unpaid fees, that is equal to two times the normally required renewal
fee. 

(d) Adds language to include the examination requirements as part of what
the person must comply with to obtain a new license.  Makes a conforming
change. 

(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 the commission, not later than the 30th day before the date a
person's license 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. 

 Redesignates Subsection (d) as Subsection (g).

 Redesignated Subsection (f) as Subsection (h).

Deletes Subsection (g) relating to the commission notifying the person in
writing of the impending license expiration. 

SECTION 20.  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
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 if the provisional license holder
meets certain requirements. 
  
(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 21.  Amends the heading to Chapter 113F, Natural Resources Code, to
read as follows: 

SUBCHAPTER F.  DISCIPLINARY ACTION. 
 
SECTION 22.  Amends Section 113.163, Natural Resources Code, as follows:
 
Sec. 113.163.  FINDINGS AND JUDGMENT. (a)  Adds language to require 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.  Sets forth provisions if a license or
registration suspension is probated.  Deletes language relating to a
licensee's or registrant's license suspension or probation appearing in the
records of the commission. 

SECTION 23.  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 24. Section 116.033, Natural Resources Code, is amended to read as
follows: 
 
(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 25.  Amends Section 116.034, Natural Resources Code, by adding
Subsections (d)-(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 relating to an examination which 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 26.  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 27.  Amends the heading to Section 116.037, Natural Resources Code,
to read as follows: 

 Sec. 116.037.  DISCIPLINARY ACTION.

SECTION 28.  Amends Section 116.037, Natural Resources Code, by amending
Subsections (f) and (g) and adding Subsection (h), as follows: 
 
 (f)  Makes a conforming change.

(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 fulfill
certain requirements. 
  
Redesignates Subsection (g) as Subsection (h).

SECTION 29.  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
if the commission makes certain findings. 
  
(b)  Authorizes the commission to take enforcement action against a person
who fails to submit a required plan or participate in a pipeline safety
investigation. 
 
Sec. 118.002.  PIPELINES FOR WHICH PLAN MAY BE REQUIRED.  Authorizes the
rules 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 to require that a
plan include certain information. 

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 30.  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 railroad commission. 
 
 (b)  Authorizes the railroad 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 railroad 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 railroad commission unless a member of the commission
requests formal review of the decision. 

SECTION 31.  Amends Chapter 104A, Utilities Code, by adding Section
104.009, as follows: 
 
Sec. 104.009.  ASSISTANCE TO LOW-INCOME CUSTOMERS. (a)  Requires the
railroad commission by rule to establish a program to provide assistance to
low-income customers in paying for gas utility service. 
 
(b)  Provides that the gas utility service assistance fund is created as a
trust fund with the comptroller and shall be administered by the railroad
commission as a trustee on behalf of recipients of money from the fund.
Provides that the fund is financed by a fee set by the commission.
Provides that the fee is allocated to customers based on the amount of gas
used. 
 
(c)  Requires the railroad commission to require a gas utility to determine
a reduced rate for low-income customers and to reimburse a gas utility from
the fund for the difference between the reduced rate and the rate that
would otherwise be applicable. 
 
(d)  Requires the railroad commission to provide for enrolling low-income
customers in the program established under this section. 

SECTION 32.  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)  Redesignated from existing Subsection (b).

SECTION 33.  Amends Section 121.206, Utilities Code, by amending Subsection
(c) and adding Subsection (d), as follows: 
 
(c)  Requires the railroad commission, in determining the amount of the
penalty, 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 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
information. 
  
SECTION 34.  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 the utility
division of the State Office of Administrative Hearings to make final
decisions and issue findings of fact, conclusions of law, and other
necessary orders in other proceedings on behalf of the Railroad Commission
of Texas as provided by Section 102.006, Utilities Code.  Provides that the
provisions of Section 2003.049 apply to a proceeding under this section
except as otherwise provided by Section 102.006, Utilities Code. 

SECTION 35.  SECTION 35. (a) Effective date: September 1, 2001, except as
otherwise provided by this Act. 
 
(b)  Requires the Railroad Commission of Texas to adopt rules under Section
101.019, Natural Resources Code, as added by this Act, not later than
January 1, 2002. 
 
 (c)  Makes application of this Act prospective.