77R11339 MI-D                           
         By Bosse, Chisum, Counts                              H.B. No. 2912
         Substitute the following for H.B. No. 2912:
         By Bosse                                          C.S.H.B. No. 2912
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Texas Natural
 1-3     Resource Conservation Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5                    ARTICLE 1.  ADMINISTRATIVE PROVISIONS
 1-6           SECTION 1.01. Section 5.014, Water Code, is amended to read
 1-7     as follows:
 1-8           Sec. 5.014.  SUNSET PROVISION. The Texas Natural Resource
 1-9     Conservation Commission is subject to Chapter 325, Government Code
1-10     (Texas Sunset Act).  Unless continued in existence as provided by
1-11     that chapter, the commission is abolished and this chapter expires
1-12     September 1, 2013 [2001].
1-13           SECTION 1.02. Section 5.052(c), Water Code, is amended to
1-14     read as follows:
1-15           (c)  Appointments to the commission shall be made without
1-16     regard to the race, color, disability [handicap], sex, religion,
1-17     age, or national origin of the appointees.
1-18           SECTION 1.03. Section 5.053(a), Water Code, is amended to
1-19     read as follows:
1-20           (a)  A person may not be a member of [is not eligible to
1-21     serve on] the commission if the person or the person's spouse:
1-22                 (1)  is registered, certified, licensed, permitted, or
1-23     otherwise authorized by the commission;
1-24                 (2)  is employed by or participates in the management
 2-1     of a business entity or other organization regulated by the
 2-2     commission or receiving money [funds] from the commission;
 2-3                 (3) [(2)]  owns or[,] controls, [or has,] directly or
 2-4     indirectly, more than a 10 percent interest in a business entity or
 2-5     other organization regulated by [the commission] or receiving funds
 2-6     from the commission; or
 2-7                 (4) [(3)]  uses or receives a substantial amount of
 2-8     tangible goods, services, or money [funds] from the commission
 2-9     other than compensation or reimbursement authorized by law for
2-10     commission membership, attendance, or expenses.
2-11           SECTION 1.04. Subchapter C, Chapter 5, Water Code, is amended
2-12     by adding Section 5.0535 to read as follows:
2-13           Sec. 5.0535.  REQUIRED TRAINING PROGRAM FOR COMMISSION
2-14     MEMBERS. (a)  A person who is appointed to and qualifies for office
2-15     as a member of the commission may not vote, deliberate, or be
2-16     counted as a member in attendance at a meeting of the commission
2-17     until the person completes a training program that complies with
2-18     this section.
2-19           (b)  The training program must provide the person with
2-20     information regarding:
2-21                 (1)  the legislation that created the commission;
2-22                 (2)  the programs operated by the commission;
2-23                 (3)  the role and functions of the commission;
2-24                 (4)  the rules of the commission, with an emphasis on
2-25     the rules that relate to disciplinary and investigatory authority;
2-26                 (5)  the current budget for the commission;
2-27                 (6)  the results of recent significant internal and
 3-1     external audits of the  commission;
 3-2                 (7)  the requirements of:
 3-3                       (A)  the open meetings law, Chapter 551,
 3-4     Government Code;
 3-5                       (B)  the public information law, Chapter 552,
 3-6     Government Code;
 3-7                       (C)  the administrative procedure law,  Chapter
 3-8     2001, Government Code; and
 3-9                       (D)  other laws relating to public officials,
3-10     including conflict-of-interest laws; and
3-11                 (8)  any applicable ethics policies adopted by the
3-12     commission or the Texas Ethics Commission.
3-13           (c)  A person appointed to the commission is entitled to
3-14     reimbursement, as provided by the General Appropriations Act, for
3-15     the travel expenses incurred in attending the training program
3-16     regardless of whether the attendance at the program occurs before
3-17     or after the person qualifies for office.
3-18           SECTION 1.05. Section 5.054, Water Code, is amended to read
3-19     as follows:
3-20           Sec. 5.054.  REMOVAL OF COMMISSION MEMBERS. (a)  It is a
3-21     ground for removal from the commission that [if] a member:
3-22                 (1)  does not have at the time of taking office the
3-23     qualifications required by Section 5.053(b);
3-24                 (2)  does not maintain during the service on the
3-25     commission the qualifications required by Section 5.053(b) [for
3-26     appointment to the commission];
3-27                 (3)  is ineligible for membership under Section
 4-1     5.053(a), 5.059, or 5.060 [(2)  violates a prohibition established
 4-2     by Sections 5.059 and 5.060 of this code];
 4-3                 (4)  cannot, because of illness or disability, [(3)  is
 4-4     unable to] discharge the member's [his] duties for a substantial
 4-5     part of the member's term [portion of the term for which he was
 4-6     appointed because of illness or disability]; or
 4-7                 (5) [(4)]  is absent from more than one-half of the
 4-8     regularly scheduled commission meetings that the member is eligible
 4-9     to attend during each calendar year without an excuse approved [,
4-10     except when the absence is excused] by a majority vote of the
4-11     commission.
4-12           (b)  The validity of an action of the commission is not
4-13     affected by the fact that it is [was] taken when a ground for
4-14     removal of a member of the commission exists [existed].
4-15           (c)  If the executive director or a member [of the
4-16     commission] has knowledge that a potential ground for removal
4-17     exists, the executive director or member [he] shall notify the
4-18     presiding officer [chairman] of the commission of the potential
4-19     [that] ground.  The presiding officer [chairman of the commission]
4-20     shall then notify the governor and the attorney general that a
4-21     potential ground for removal exists.  If the potential ground for
4-22     removal involves the presiding officer, the executive director or
4-23     another member of the commission shall notify the member of the
4-24     commission with the most seniority, who shall then notify the
4-25     governor and the attorney general that a potential ground for
4-26     removal exists.
4-27           SECTION 1.06. Sections 5.058(a)-(d), Water Code, are amended
 5-1     to read as follows:
 5-2           (a)  The governor shall designate a member of the commission
 5-3     as the presiding officer [the chairman] of the commission to serve
 5-4     in that capacity at the pleasure of[.  He shall serve as chairman
 5-5     until] the governor [designates a different chairman].
 5-6           (b)  The presiding officer [chairman] may designate another
 5-7     commissioner to act for the presiding officer [him] in the
 5-8     presiding officer's  [his] absence.
 5-9           (c)  The presiding officer [chairman] shall preside at the
5-10     meetings and hearings of the commission.
5-11           (d)  The commission shall hold regular meetings and all
5-12     hearings at times specified by a commission order and entered in
5-13     its minutes.  The commission may hold special meetings at the times
5-14     and places in the state that the commission decides are appropriate
5-15     for the performance of its duties.  The presiding officer
5-16     [chairman] or acting presiding officer [chairman] shall give the
5-17     other members reasonable notice before holding a special meeting.
5-18           SECTION 1.07. Sections 5.059 and 5.060, Water Code, are
5-19     amended to read as follows:
5-20           Sec. 5.059.  CONFLICT OF INTEREST. (a)  In this section,
5-21     "Texas trade association" means a cooperative and voluntarily
5-22     joined association of business or professional competitors in this
5-23     state designed to assist its members and its industry or profession
5-24     in dealing with mutual business or professional problems and in
5-25     promoting their common interest.
5-26           (b)  A person may not be a member of the commission and may
5-27     not be a commission employee employed in a "bona fide executive,
 6-1     administrative, or professional capacity," as that phrase is used
 6-2     for purposes of establishing an exemption to the overtime
 6-3     provisions of the federal Fair Labor Standards Act of 1938 (29
 6-4     U.S.C. Section 201 et seq.) and its subsequent amendments, if:
 6-5                 (1)  the person is an officer, employee, or paid
 6-6     consultant of a Texas trade association in an industry regulated by
 6-7     the commission; or
 6-8                 (2)  the person's spouse is an officer, manager, or
 6-9     paid consultant of a Texas trade association in an industry
6-10     regulated by the commission [An officer, employee, or paid
6-11     consultant of a trade association in an industry regulated by the
6-12     commission may not be a member of the commission or employee of the
6-13     commission, nor may a person who cohabits with or is the spouse of
6-14     an officer, managerial employee, or paid consultant of a trade
6-15     association in an industry regulated by the commission be a member
6-16     of the commission or an employee of the commission grade 17 or
6-17     over, including exempt employees, according to the position
6-18     classification schedule under the General Appropriations Act].
6-19           Sec. 5.060.  LOBBYIST PROHIBITION. A person may not be a
6-20     member of the commission or act as general counsel to the
6-21     commission if the person [who] is required to register as a
6-22     lobbyist under Chapter 305, Government Code, because  [by virtue]
6-23     of the person's [his] activities for compensation [in or] on behalf
6-24     of a profession related to the operation of the commission [may not
6-25     serve as a member of the commission or act as the general counsel
6-26     to the commission].
6-27           SECTION 1.08. Subchapter D, Chapter 5, Water Code, is amended
 7-1     by adding Section 5.1031 to read as follows:
 7-2           Sec. 5.1031.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
 7-3     BIDDING PROHIBITED. (a)  The commission may not adopt rules
 7-4     restricting advertising or competitive bidding by a license holder
 7-5     except to prohibit false, misleading, or deceptive practices.
 7-6           (b)  In its rules to prohibit false, misleading, or deceptive
 7-7     practices, the commission may not include a rule that:
 7-8                 (1)  restricts the use of any medium for advertising;
 7-9                 (2)  restricts the use of a license holder's personal
7-10     appearance or voice in an advertisement;
7-11                 (3)  relates to the size or duration of an
7-12     advertisement by the license holder; or
7-13                 (4)  restricts the license holder's advertisement under
7-14     a trade name.
7-15           SECTION 1.09. Section 5.107, Water Code, is amended to read
7-16     as follows:
7-17           Sec. 5.107.  ADVISORY COMMITTEES, WORK GROUPS, AND TASK
7-18     FORCES [COUNCILS]. (a)  The commission or the executive director
7-19     may create and consult with advisory committees, work groups, or
7-20     task forces [councils], including committees, work groups, or task
7-21     forces [councils] for the environment, [councils] for public
7-22     information, or for any other matter [councils] that the commission
7-23     or the executive director may consider appropriate.
7-24           (b)  The commission shall identify affected groups of
7-25     interested persons for advisory committees, work groups, and task
7-26     forces and shall make reasonable attempts to have balanced
7-27     representation on all advisory committees, work groups, and task
 8-1     forces.  This subsection does not require the commission to ensure
 8-2     that all representatives attend a scheduled meeting.  A rule or
 8-3     other action of the commission may not be challenged solely because
 8-4     of the composition of an advisory committee, work group, or task
 8-5     force.
 8-6           (c)  The commission shall monitor the composition and
 8-7     activities of advisory committees, work groups, and task forces
 8-8     appointed by the commission or formed at the staff level and shall
 8-9     maintain that information in a form and location that is easily
8-10     accessible to the public.
8-11           SECTION 1.10. Subchapter D, Chapter 5, Water Code, is amended
8-12     by adding Section 5.1115 to read as follows:
8-13           Sec. 5.1115.  RECORD OF OUTSIDE CONTACT BY COMMISSION MEMBER
8-14     OR STAFF. (a)  Each commission member and each commission staff
8-15     member with discretionary authority over any aspect of a permit  or
8-16     enforcement decision, rulemaking, or other regulatory matter
8-17     pending before or within the jurisdiction of the commission shall
8-18     keep a written record of each communication with any person other
8-19     than a commission member or commission employee regarding that
8-20     regulatory matter.  A commission member or commission employee has
8-21     discretionary authority if the person has authority to make a
8-22     decision that is final regarding that regulatory matter.
8-23           (b)  The written record must state:
8-24                 (1)  the name of the person with whom the communication
8-25     took place;
8-26                 (2)  the name of that person's employer;
8-27                 (3)  the name of the party or interest whom that person
 9-1     is representing;
 9-2                 (4)  the specific regulatory matter about which the
 9-3     communication is made;
 9-4                 (5)  the date, time, and location of the communication;
 9-5     and
 9-6                 (6)  the specific method of communication, whether in
 9-7     person or by letter, telephone, e-mail, or other method.
 9-8           (c)  A written record prepared as required by this section is
 9-9     subject to disclosure under the public information law, Chapter
9-10     552, Government Code.
9-11           (d)  This section does not apply to an unplanned
9-12     communication that occurs outside commission offices.
9-13           (e)  If the communication occurs as part of a presentation to
9-14     a group or association, the written record must include the name of
9-15     the group or association instead of the information required by
9-16     Subsections (b)(1)-(3).
9-17           SECTION 1.11. Subchapter D, Chapter 5, Water Code, is amended
9-18     by adding Sections 5.1191-5.1193 to read as follows:
9-19           Sec. 5.1191.  RESEARCH COORDINATION; REPORT. (a)  The
9-20     commission shall facilitate research regarding the commission's
9-21     practical regulatory needs by coordinating commission research
9-22     efforts and requirements with the state's scientific and academic
9-23     communities.
9-24           (b)  The commission shall explore private and federal funding
9-25     opportunities for necessary or desirable research projects.  The
9-26     commission may direct and facilitate research based on commission
9-27     research needs by administering grants or by contracting with state
 10-1    universities if money is appropriated to the commission for those
 10-2    purposes.
 10-3          (c)  The commission shall coordinate any research activity
 10-4    with existing state initiatives and shall work with state
 10-5    universities and the Texas Higher Education Coordinating Board to
 10-6    help meet the goals of this section.
 10-7          (d)  To the greatest extent possible, the commission shall
 10-8    use the research expertise of state universities, the United States
 10-9    Department of Agriculture, and the Texas Department of Agriculture
10-10    and other appropriate state agencies.
10-11          (e)  The commission shall include in the reports required by
10-12    Section 5.178 a description of cooperative research efforts, an
10-13    accounting of money spent on research, and a review of the purpose,
10-14    implementation, and results of particular research projects
10-15    conducted.
10-16          (f)  This section does not authorize the commission to
10-17    initiate or direct the research efforts of other entities.
10-18          Sec. 5.1192.  RESEARCH ADVISORY BOARD. The commission may
10-19    appoint a research advisory board  to assist the commission in
10-20    providing appropriate incentives to encourage various interest
10-21    groups to participate and make recommendations regarding research
10-22    topics specific to this state.  The research advisory board must
10-23    include representatives of the academic community, representatives
10-24    of the regulated community, and public representatives of the state
10-25    at large.
10-26          Sec. 5.1193.  RESEARCH MODEL. The commission shall develop a
10-27    research model to identify the commission's research needs and to
 11-1    obtain funding for research projects.  The research model must
 11-2    provide for commission staff to work with representatives of state
 11-3    universities, the United States Department of Agriculture, the
 11-4    Texas Department of Agriculture and other appropriate state
 11-5    agencies, and the regulated community to develop long-range
 11-6    research plans and to identify and pursue specific research
 11-7    projects.  Commission requests for proposals shall be developed
 11-8    according to research needs identified through use of the model.
 11-9          SECTION 1.12. Subchapter D, Chapter 5, Water Code, is amended
11-10    by adding Sections 5.127-5.129 to read as follows:
11-11          Sec. 5.127.  USE OF ENVIRONMENTAL TESTING LABORATORY DATA AND
11-12    ANALYSIS. (a)  The commission may accept environmental testing
11-13    laboratory data and analysis for use in commission decisions
11-14    regarding any matter under the commission's jurisdiction relating
11-15    to permits or other authorizations, compliance matters, enforcement
11-16    actions, or corrective actions only if the data and analysis is
11-17    prepared by an environmental testing laboratory accredited by the
11-18    commission under Subchapter R or an environmental testing
11-19    laboratory described in Subsection (b).
11-20          (b)  The commission may accept for use in commission
11-21    decisions data and analysis prepared by:
11-22                (1)  an on-site or in-house environmental testing
11-23    laboratory if the laboratory is periodically inspected by the
11-24    commission;
11-25                (2)  an environmental testing laboratory that is
11-26    accredited under federal law; or
11-27                (3)  if the data and analysis are necessary for
 12-1    emergency response activities and the required data and analysis
 12-2    are not otherwise available,  an environmental testing laboratory
 12-3    that is not accredited by the commission under Subchapter R or
 12-4    under federal law.
 12-5          (c)  The commission by rule may require that data and
 12-6    analysis used in other commission decisions be obtained from an
 12-7    environmental testing laboratory accredited by the commission under
 12-8    Subchapter R.
 12-9          Sec. 5.128.  ELECTRONIC REPORTING TO COMMISSION; REDUCTION OF
12-10    DUPLICATE REPORTING. (a)  The commission shall encourage the use of
12-11    electronic reporting through the Internet, to the extent
12-12    practicable, for reports required by the commission.  An electronic
12-13    report must be submitted in a format prescribed by the commission.
12-14    The commission may consult with the Department of Information
12-15    Resources on developing a  simple format for use in implementing
12-16    this subsection.
12-17          (b)  The commission shall strive to reduce duplication in
12-18    reporting requirements throughout the agency.
12-19          Sec. 5.129.  SUMMARY FOR PUBLIC NOTICES. (a)  The commission
12-20    by rule shall provide for each public notice issued or published by
12-21    the commission or by a person under the jurisdiction of the
12-22    commission as required by law or by commission rule to include at
12-23    the beginning of the notice a succinct statement of the subject of
12-24    the notice.  The rules must provide that a summary statement must
12-25    be designed to inform the reader of the subject matter of the
12-26    notice without having to read the entire text of the notice.
12-27          (b)  The summary statement may not be grounds for challenging
 13-1    the validity of the proposed action for which the notice was
 13-2    published.
 13-3          SECTION 1.13. Subchapter E, Chapter 5, Water Code, is amended
 13-4    by adding Section 5.1765 to read as follows:
 13-5          Sec. 5.1765.  PUBLICATION OF INFORMATION REGARDING COMPLAINT
 13-6    PROCEDURES AND POLICIES. The commission shall establish a process
 13-7    for educating the public regarding the commission's complaint
 13-8    policies and procedures. As part of the public education process,
 13-9    the commission shall make available to the public in pamphlet form
13-10    an explanation of the complaint policies and procedures, including
13-11    information regarding and standards applicable to the collection
13-12    and preservation of credible evidence of environmental problems by
13-13    members of the public.
13-14          SECTION 1.14. Sections 5.176 and 5.177, Water Code, are
13-15    amended to read as follows:
13-16          Sec. 5.176.  COMPLAINT FILE. The commission shall maintain a
13-17    [keep an information] file on [about] each written complaint filed
13-18    with the commission about a matter within the commission's
13-19    regulatory jurisdiction [relating to an entity regulated by the
13-20    commission].  The file must include:
13-21                (1)  the name of the person who filed the complaint;
13-22                (2)  the date the complaint is received by the
13-23    commission;
13-24                (3)  the subject matter of the complaint;
13-25                (4)  the name of each person contacted in relation to
13-26    the complaint;
13-27                (5)  a summary of the results of the review or
 14-1    investigation of the complaint; and
 14-2                (6)  an explanation of the reason the file was closed,
 14-3    if the agency closed the file without taking action other than to
 14-4    investigate the complaint.
 14-5          Sec. 5.177.  NOTICE OF COMPLAINT PROCEDURES; NOTICE OF
 14-6    INVESTIGATION STATUS. (a)  The agency shall provide to the person
 14-7    filing the complaint about a matter within the commission's
 14-8    regulatory jurisdiction and to each person who is the subject of
 14-9    the complaint a copy of the commission's policies and procedures
14-10    relating to complaint investigation and resolution.
14-11          (b)  The [If a written complaint is filed with the commission
14-12    relating to an entity regulated by the commission, the] commission,
14-13    at least [as frequently as] quarterly [and] until final disposition
14-14    of the complaint, shall notify the person filing the complaint and
14-15    each person who is a subject of [parties to] the complaint of the
14-16    status of the investigation [complaint] unless the notice would
14-17    jeopardize an undercover investigation.
14-18          (c)  The commission is not required to provide the
14-19    information described in Subsection (a) or (b) to a complainant who
14-20    files an anonymous complaint or provides inaccurate contact
14-21    information.
14-22          SECTION 1.15. Subchapter E, Chapter 5, Water Code, is amended
14-23    by adding Sections 5.1771 and 5.1772 to read as follows:
14-24          Sec. 5.1771.  COORDINATION OF COMPLAINT INVESTIGATIONS WITH
14-25    LOCAL ENFORCEMENT OFFICIALS:  TRAINING. (a)  The commission shall
14-26    share information regarding a complaint about a matter within the
14-27    commission's regulatory jurisdiction made to the commission with
 15-1    local officials with authority to act on the complaint in the
 15-2    county or municipality in which the alleged action or omission that
 15-3    is the subject of the complaint occurred or is threatening to
 15-4    occur.
 15-5          (b)  On request, the commission shall provide training for
 15-6    local enforcement officials in investigating complaints and
 15-7    enforcing environmental laws relating to matters under the
 15-8    commission's jurisdiction under this code or the Health and Safety
 15-9    Code.  The training must include, at a minimum:
15-10                (1)  procedures for local enforcement officials to use
15-11    in addressing citizen complaints if the commission is unavailable
15-12    or unable to  respond to the complaint; and
15-13                (2)  an explanation of local government authority to
15-14    enforce state laws and commission rules relating to the
15-15    environment.
15-16          (c)  The commission may charge a reasonable fee for providing
15-17    training to local enforcement officials as required by Subsection
15-18    (b) in an amount sufficient to recover the costs of the training.
15-19          Sec. 5.1772.  AFTER-HOURS RESPONSE TO COMPLAINTS. (a)  The
15-20    commission shall adopt and implement a policy to provide response
15-21    to complaints during periods outside regular business hours.
15-22          (b)  This section does not:
15-23                (1)  require availability of field inspectors for
15-24    response 24 hours a day, seven days a week, in all parts of the
15-25    state; or
15-26                (2)  authorize additional use of overtime.
15-27          SECTION 1.16. Section 5.227, Water Code, is amended to read
 16-1    as follows:
 16-2          Sec. 5.227.  EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a)  The
 16-3    executive director or his designee shall prepare and maintain a
 16-4    written policy statement that implements  [to assure implementation
 16-5    of] a program of equal employment opportunity to ensure that
 16-6    [whereby] all personnel decisions [transactions] are made without
 16-7    regard to race, color, disability [handicap], sex, religion, age,
 16-8    or national origin.
 16-9          (b)  The policy statement must include:
16-10                (1)  personnel policies, including policies relating to
16-11    recruitment, evaluation, selection, [appointment,] training, and
16-12    promotion of personnel, that show the intent of the commission to
16-13    avoid the unlawful employment practices described by Chapter 21,
16-14    Labor Code; and
16-15                (2)  a comprehensive analysis of the extent to which
16-16    the composition of the commission's personnel is in accordance with
16-17    state and federal law and a description of reasonable methods to
16-18    achieve compliance with state and federal law [work force that
16-19    meets federal and state guidelines;]
16-20                [(3)  procedures by which a determination can be made
16-21    of significant underutilization in the commission's work force of
16-22    all persons for whom federal or state guidelines encourage a more
16-23    equitable balance; and]
16-24                [(4)  reasonable methods to address appropriately areas
16-25    of significant underutilization in the commission's work force of
16-26    all persons for whom federal or state guidelines encourage a more
16-27    equitable balance].
 17-1          (c) [(b)]  The policy statement must:
 17-2                (1)  [shall be filed with the governor's office before
 17-3    November 1, 1985, cover an annual period, and] be updated [at
 17-4    least] annually;
 17-5                (2)  be reviewed by the state Commission on Human
 17-6    Rights for compliance with Subsection (b)(1); and
 17-7                (3)  be filed with the governor's office.  [The
 17-8    governor's office shall develop a biennial report to the
 17-9    legislature based on the information submitted.  This report may be
17-10    made individually or as a part of other biennial reports made to
17-11    the legislature.]
17-12          SECTION 1.17. Subchapter F, Chapter 5, Water Code, is amended
17-13    by adding Section 5.2275 to read as follows:
17-14          Sec. 5.2275.  STATE EMPLOYEE INCENTIVE PROGRAM. The executive
17-15    director or the executive director's designee shall provide to
17-16    commission employees information and training on the benefits and
17-17    methods of participation in the state employee incentive program
17-18    under Subchapter B, Chapter 2108, Government Code.
17-19          SECTION 1.18. Section 5.228, Water Code, is amended to read
17-20    as follows:
17-21          Sec. 5.228.  APPEARANCES AT HEARINGS. (a)  The position of
17-22    and information developed by the commission shall be presented by
17-23    the executive director or his designated representative at hearings
17-24    of the commission and the hearings held by federal, state, and
17-25    local agencies on matters affecting the public's interest in the
17-26    state's environment and natural resources, including matters that
17-27    have been determined to be policies of the state.
 18-1          (b)  The executive director shall be named a party in
 18-2    hearings before the commission on an enforcement matter under the
 18-3    jurisdiction of the commission.
 18-4          (c)  The executive director may participate as a party in
 18-5    permit hearings or contested case permit hearings before the
 18-6    commission or the State Office of Administrative Hearings for the
 18-7    sole purpose of providing information to complete the
 18-8    administrative record.  The commission by rule shall specify the
 18-9    factors the executive director must consider in determining, case
18-10    by case, whether to participate as a party in a permit hearing or a
18-11    contested case permit hearing.
18-12          (d)  In a contested case hearing relating to a permit
18-13    application, the executive director or the executive director's
18-14    designated representative may not rehabilitate the testimony of a
18-15    witness unless the witness is a commission employee testifying for
18-16    the sole purpose of providing information to complete the
18-17    administrative record.
18-18          (e)  The executive director or the executive director's
18-19    designated representative may not assist a permit applicant in
18-20    meeting its burden of proof in a hearing before the commission or
18-21    the State Office of Administrative Hearings unless the permit
18-22    applicant fits a category of permit applicant that the commission
18-23    by rule has designated as eligible to receive assistance.  The
18-24    commission shall adopt rules establishing categories of permit
18-25    applicants eligible to receive assistance.
18-26          SECTION 1.19. Section 5.234(b), Water Code, is amended to
18-27    read as follows:
 19-1          (b)  After an application, petition, or other document is
 19-2    processed, it shall be presented to the commission for action as
 19-3    required by law and rules of the commission.  If, in the course of
 19-4    reviewing an application and preparing a draft permit, the
 19-5    executive director has required changes to be made to the
 19-6    applicant's proposal, the executive director shall prepare a
 19-7    summary of the changes that were made to increase protection of
 19-8    public health and the environment.
 19-9          SECTION 1.20. Sections 5.273 and 5.274, Water Code, are
19-10    amended to read as follows:
19-11          Sec. 5.273.  DUTIES OF THE PUBLIC INTEREST COUNSEL. (a)  The
19-12    counsel shall represent the public interest and be a party to all
19-13    proceedings before the commission.
19-14          (b)  The counsel may recommend needed legislative and
19-15    regulatory changes.
19-16          Sec. 5.274.  STAFF; OUTSIDE TECHNICAL SUPPORT. (a)  The
19-17    office shall be adequately staffed to carry out its functions under
19-18    this code.
19-19          (b)  The counsel may obtain and use outside technical support
19-20    to carry out its functions under this code.
19-21          SECTION 1.21.  Subchapter A, Chapter 7, Water Code, is
19-22    amended by adding Section 7.0025 to read as follows:
19-23          Sec. 7.0025.  INITIATION OF ENFORCEMENT ACTION USING EVIDENCE
19-24    PROVIDED BY PRIVATE INDIVIDUAL. (a)  The commission may initiate an
19-25    enforcement action on a matter under its jurisdiction under this
19-26    code or the Health and Safety Code based on evidence it receives
19-27    from a private individual if that evidence, in the commission's
 20-1    judgment, meets the requirements of the Texas Rules of Evidence.
 20-2          (b)  The executive director or the executive director's
 20-3    designated representative may evaluate the value and credibility of
 20-4    evidence received from a private individual and the merits of any
 20-5    proposed enforcement action based on that evidence.
 20-6          (c)  The commission by rule may adopt criteria for the
 20-7    executive director to use in evaluating the value and credibility
 20-8    of evidence received from a private individual and for use of that
 20-9    evidence in an enforcement action.
20-10          (d)  A private individual who submits evidence on which the
20-11    commission relies for all or part of an enforcement case may be
20-12    called to testify in the enforcement proceedings and is subject to
20-13    all sanctions under law for falsifying evidence.  If the commission
20-14    relies solely on the evidence submitted by a private individual to
20-15    prove an enforcement case, any physical or sampling data must have
20-16    been collected or gathered in accordance with commission protocols.
20-17                      ARTICLE 2.  NOTICE REQUIREMENTS
20-18          SECTION 2.01. Chapter 5, Water Code, is amended by adding a
20-19    heading for Subchapter O to read as follows:
20-20                    SUBCHAPTER O.  NOTICE REQUIREMENTS
20-21          SECTION 2.02. Section 5.115, Water Code, is transferred to
20-22    new Subchapter O, Chapter 5, Water Code, redesignated as Section
20-23    5.651, and amended to read as follows:
20-24          Sec. 5.651 [5.115].  PERSONS AFFECTED IN COMMISSION HEARINGS;
20-25    NOTICE OF APPLICATION FOR PERMIT OR LICENSE. (a)  For the purpose
20-26    of an administrative hearing held by or for the commission
20-27    involving a contested case, "affected person," or "person
 21-1    affected," or "person who may be affected" means a person who has a
 21-2    personal justiciable interest related to a legal right, duty,
 21-3    privilege, power, or economic interest affected by the
 21-4    administrative hearing.  An interest common to members of the
 21-5    general public does not qualify as a personal justiciable interest.
 21-6    The commission shall adopt rules specifying factors which must be
 21-7    considered in determining whether a person is an affected person in
 21-8    any contested case arising under the air, waste, or water programs
 21-9    within the commission's jurisdiction and whether an affected
21-10    association is entitled to standing in contested case hearings.
21-11          (b)  At the time an application for a permit or license under
21-12    this code is filed with the executive director and is
21-13    administratively complete, the commission shall give notice of the
21-14    application to any person who may be affected by the granting of
21-15    the permit or license.
21-16          (c)  At the time an application for any formal action by the
21-17    commission that will affect lands dedicated to the permanent school
21-18    fund is filed with the executive director or the commission and is
21-19    administratively complete, the commission shall give notice of the
21-20    application to the School Land Board.  Notice shall be delivered by
21-21    certified mail, return receipt requested, addressed to the deputy
21-22    commissioner of the asset management division of the General Land
21-23    Office.  Delivery is not complete until the return receipt is
21-24    signed by the deputy commissioner of the asset management division
21-25    of the General Land Office and returned to the commission.
21-26          (d)  The commission shall adopt rules for the notice required
21-27    by this section.
 22-1          (e)  The notice must state:
 22-2                (1)  the identifying number given the application by
 22-3    the commission;
 22-4                (2)  the type of permit or license sought under the
 22-5    application;
 22-6                (3)  the name and address of the applicant;
 22-7                (4)  the date on which the application was submitted;
 22-8    and
 22-9                (5)  a brief summary of the information included in the
22-10    permit application.
22-11          (f)  The notice to the School Land Board under this section
22-12    shall additionally:
22-13                (1)  state the location of the permanent school fund
22-14    land to be affected; and
22-15                (2)  describe any foreseeable impact or effect of the
22-16    commission's action on permanent school fund land.
22-17          (g)  A formal action or ruling by the commission on an
22-18    application affecting permanent school fund land that is made
22-19    without the notice required by this section is voidable by the
22-20    School Land Board as to any permanent school fund lands affected by
22-21    the action or ruling.
22-22          SECTION 2.03. Sections 11.085(f)-(i), Water Code, are
22-23    transferred to new Subchapter O, Chapter 5, Water Code,
22-24    redesignated as Section 5.652, and amended to read as follows:
22-25          Sec. 5.652.  NOTICE OF APPLICATION FOR INTERBASIN TRANSFER.
22-26    (a) [(f)]  Notice of an application for an interbasin transfer
22-27    under Section 11.085 shall be mailed to the following:
 23-1                (1)  all holders of permits, certified filings, or
 23-2    certificates of adjudication located in whole or in part in the
 23-3    basin of origin;
 23-4                (2)  each county judge of a county located in whole or
 23-5    in part in the basin of origin;
 23-6                (3)  each mayor of a city with a population of 1,000 or
 23-7    more located in whole or in part in the basin of origin; [and]
 23-8                (4)  all groundwater conservation districts located in
 23-9    whole or in part in the basin of origin; and
23-10                (5)  each state legislator in both basins.
23-11          (b) [(g)]  The applicant shall cause the notice of
23-12    application for an interbasin transfer to be published once a week
23-13    for two consecutive weeks in one or more newspapers having general
23-14    circulation in each county located in whole or in part in the basin
23-15    of origin or the receiving basin.  The published notice may not be
23-16    smaller than 96.8 square centimeters or 15 square inches with the
23-17    shortest dimension at least 7.6 centimeters or three inches.  The
23-18    notice of application and public meetings shall be combined in the
23-19    mailed and published notices.
23-20          (c) [(h)]  The notice of application must state how a person
23-21    may obtain the information described by Section 11.085(b)
23-22    [Subsection (b) of this section].
23-23          (d) [(i)]  The applicant shall pay the cost of notice
23-24    required to be provided under this section.  The commission by rule
23-25    may establish procedures for payment of those costs.
23-26          SECTION 2.04. Sections 11.132(a)-(c), Water Code, are
23-27    transferred to new Subchapter O, Chapter 5, Water Code,
 24-1    redesignated as Section 5.653, and amended to read as follows:
 24-2          Sec. 5.653.  NOTICE OF PROPOSED APPROPRIATION OF WATER. (a)
 24-3    Notice shall be given to the persons who in the judgment of the
 24-4    commission may be affected by an application for authorization to
 24-5    appropriate unappropriated state water under Chapter 11, including
 24-6    those persons listed in Section 5.654(b) [Subdivision (2),
 24-7    Subsection (d), of this section.  The commission, on the motion of
 24-8    a commissioner or on the request of the executive director or any
 24-9    affected person, shall hold a public hearing on the application].
24-10          (b)  If the proposed use is for irrigation, the commission
24-11    shall include in the notice a general description of the location
24-12    and area of the land to be irrigated.
24-13          (c)  In the notice, the commission shall:
24-14                (1)  state the name and address of the applicant;
24-15                (2)  state the date the application was filed;
24-16                (3)  state the purpose and extent of the proposed
24-17    appropriation of water;
24-18                (4)  identify the source of supply and the place where
24-19    the water is to be stored or taken or diverted from the source of
24-20    supply;
24-21                (5)  specify the time and location where the commission
24-22    will consider the application; and
24-23                (6)  give any additional information the commission
24-24    considers necessary.
24-25          SECTION 2.05. Sections 11.132(d) and (e), Water Code, are
24-26    transferred to new Subchapter O, Chapter 5, Water Code,
24-27    redesignated as Section 5.654, and amended to read as follows:
 25-1          Sec. 5.654.  NOTICE REQUIRED TO OBTAIN AUTHORIZATION TO
 25-2    APPROPRIATE WATER WITHOUT HEARING. (a)  Not later [(d) The
 25-3    commission may act on the application without holding a public
 25-4    hearing if:]
 25-5                [(1)  not less] than 30 days before the date of action
 25-6    by the commission on an [the] application for authorization to
 25-7    appropriate unappropriated state water under Chapter 11 [by the
 25-8    commission], the applicant shall publish [has published] the
 25-9    commission's notice of the application under Section 5.653 at least
25-10    once in a newspaper regularly published or circulated within the
25-11    section of the state where the source of water is located.[;]
25-12          (b)  Not later [(2)  not less] than 30 days before the date
25-13    of action on the application by the commission, the commission
25-14    shall mail [mails] a copy of the notice by first-class mail,
25-15    postage prepaid, to:
25-16                (1) [(A)]  each claimant or appropriator of water from
25-17    the source of water supply, the record of whose claim or
25-18    appropriation has been filed with the commission; and
25-19                (2) [(B)]  all navigation districts within the river
25-20    basin concerned[; and]
25-21                [(3)  within 30 days after the date of the newspaper
25-22    publication of the commission's notice, a public hearing has not
25-23    been requested in writing by a commissioner, the executive
25-24    director, or an affected person who objects to the application].
25-25          (c) [(e)]  The inadvertent failure of the commission to mail
25-26    a notice under [Subdivision (2),] Subsection (b) [(d), of this
25-27    section] to a navigation district that is not a claimant or
 26-1    appropriator of water does not prevent the commission's
 26-2    consideration of the application.
 26-3          SECTION 2.06. Sections 11.143(e) and (f), Water Code, are
 26-4    transferred to new Subchapter O, Chapter 5, Water Code,
 26-5    redesignated as Section 5.655, and amended to read as follows:
 26-6          Sec. 5.655.  NOTICE OF APPLICATION AND OF HEARING ON
 26-7    APPLICATION FOR PERMIT TO USE DOMESTIC AND LIVESTOCK RESERVOIR FOR
 26-8    OTHER PURPOSES. (a)  The commission shall give notice of an
 26-9    application for a permit to use water from a dam or reservoir
26-10    exempted under Section 11.142 for a purpose other than domestic or
26-11    livestock use as provided by this section.
26-12          (b) [(e)]  In the notice, the commission shall:
26-13                (1)  state the name and post-office address of the
26-14    applicant;
26-15                (2)  state the date the application was filed;
26-16                (3)  state the purpose and extent of the proposed
26-17    appropriation of water;
26-18                (4)  identify the source of supply and the place where
26-19    the water is stored; and
26-20                (5)  specify the time and place of the hearing.
26-21          (c) [(f)]  The notice shall be published only once, at least
26-22    20 days before the date stated in the notice for the hearing on the
26-23    application, in a newspaper having general circulation in the
26-24    county where the dam or reservoir is located.  At least 15 days
26-25    before the date set for the hearing, the commission shall transmit
26-26    a copy of the notice by first-class mail to each person whose claim
26-27    or appropriation has been filed with the commission and whose
 27-1    diversion point is downstream from that described in the
 27-2    application.
 27-3          SECTION 2.07. Section 11.143(d), Water Code, is transferred
 27-4    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
 27-5    5.656, and amended to read as follows:
 27-6          Sec. 5.656.  NOTICE REQUIRED TO OBTAIN A PERMIT WITHOUT
 27-7    HEARING TO USE DOMESTIC AND LIVESTOCK RESERVOIR FOR OTHER PURPOSES.
 27-8    (a)  Not later [(d)  Except as otherwise specifically provided by
 27-9    this subsection, before the commission may approve the application
27-10    and issue the permit, it shall give notice and hold a hearing as
27-11    prescribed by this section.  The commission may act on the
27-12    application without holding a public hearing if:]
27-13                [(1)  not less] than 30 days before the date of action
27-14    by the commission on an [the] application to obtain a permit under
27-15    Section 11.143 to use water from a dam or reservoir exempted under
27-16    Section 11.142 for a purpose other than domestic or livestock use
27-17    [by the commission], the applicant shall publish [has published]
27-18    the commission's notice of the application at least once in a
27-19    newspaper regularly published or circulated within the section of
27-20    the state where the source of water is located.[;]
27-21          (b)  Not later [(2)  not less] than 30 days before the date
27-22    of action on the application by the commission, the commission
27-23    shall mail [mails] a copy of the notice by first-class mail,
27-24    postage prepaid, to each person whose claim or appropriation has
27-25    been filed with the commission and whose diversion point is
27-26    downstream from that described in the application[; and]
27-27                [(3)  within 30 days after the date of the newspaper
 28-1    publication of the commission's notice, a public hearing is not
 28-2    requested in writing by a commissioner, the executive director, or
 28-3    an affected person who objects to the application].
 28-4          SECTION 2.08. Section 11.175, Water Code, is transferred to
 28-5    new Subchapter O, Chapter 5, Water Code, redesignated as Section
 28-6    5.657, and amended to read as follows:
 28-7          Sec. 5.657 [11.175].  NOTICE OF CANCELLATION PROCEEDING. (a)
 28-8    At least 45 days before the date of a [the] hearing on the proposed
 28-9    cancellation of a permit, certified filing, or certificate of
28-10    adjudication under Section 11.176, the commission shall send notice
28-11    of the hearing to the holder of the permit, certified filing, or
28-12    certificate of adjudication being considered for cancellation in
28-13    whole or in part.  Notice shall be sent by certified mail, return
28-14    receipt requested, to the last address shown by the records of the
28-15    commission.  The commission shall also send notice by regular mail
28-16    to all other holders of permits, certified filings, certificates of
28-17    adjudication, and claims of unadjudicated water rights filed
28-18    pursuant to Section 11.303 [of this code] in the same watershed.
28-19          (b)  The commission shall also have the notice of the hearing
28-20    published once a week for two consecutive weeks, at least 30 days
28-21    before the date of the hearing, in a newspaper published in each
28-22    county in which diversion of water from the source of supply was
28-23    authorized or proposed to be made and in each county in which the
28-24    water was authorized or proposed to be used, as shown by the
28-25    records of the commission.  If in any such county no newspaper is
28-26    published, then the notice may be published in a newspaper having
28-27    general circulation in the county.
 29-1          SECTION 2.09. Sections 26.022(b) and (c), Water Code, are
 29-2    transferred to new Subchapter O, Chapter 5, Water Code,
 29-3    redesignated as Section 5.658, and amended to read as follows:
 29-4          Sec. 5.658.  NOTICE OF HEARINGS HELD UNDER CHAPTER 26.
 29-5    (a)  Except as otherwise provided by Sections 5.501, 5.504, 5.509,
 29-6    and 26.176, notice [(b)  Notice] of all hearings held under Chapter
 29-7    26 [the hearing] shall be published at least once in a newspaper
 29-8    regularly published or circulated in each county where, by virtue
 29-9    of the county's geographical relation to the subject matter of the
29-10    hearing, the commission has reason to believe persons reside who
29-11    may be affected by the action that may be taken as a result of the
29-12    hearing.  The date of the publication shall be not less than 20
29-13    days before the date set for the hearing.
29-14          (b) [(c)]  If notice of the hearing is required by Chapter 26
29-15    [this chapter] to be given to a person, the notice shall be served
29-16    personally or mailed not less than 20 days before the date set for
29-17    the hearing to the person at his last address known to the
29-18    commission.  If the party is not an individual, the notice may be
29-19    given to any officer, agent, or legal representative of the party.
29-20          SECTION 2.10. Sections 26.028(a), (b), and (e), Water Code,
29-21    are transferred to new Subchapter O, Water Code, redesignated as
29-22    Section 5.659, and amended to read as follows:
29-23          Sec. 5.659.  NOTICE TO AFFECTED PERSONS OF APPLICATION FOR
29-24    PERMIT, PERMIT AMENDMENT, OR PERMIT RENEWAL UNDER CHAPTER 26. (a)
29-25    The commission shall give notice [Notice] of an application for a
29-26    permit, permit amendment, or permit renewal under Chapter 26 [shall
29-27    be given] to the persons who in the judgment of the commission may
 30-1    be affected by the application, except as provided by this section.
 30-2          (b)  For any application involving an average daily discharge
 30-3    of five million gallons or more, the notice shall be given:
 30-4                (1)  not later than 20 days before the date on which
 30-5    the commission acts on the application; and
 30-6                (2)  to each county judge in the county or counties
 30-7    located within 100 statute miles of the point of discharge who have
 30-8    requested in writing that the commission give that notice and
 30-9    through which water, into or adjacent to which waste or pollutants
30-10    are to be discharged under the permit, flows after the discharge.
30-11          (c) [(e)]  Notice of an application under Section 26.028(c)
30-12    must [Subsection (d) shall] be mailed to the mayor and health
30-13    authorities for the city or town, and the county judge and health
30-14    authorities for the county in which the waste is or will be
30-15    discharged, at least 10 days before the commission meeting[, and
30-16    they may present information to the commission on the application].
30-17          SECTION 2.11. Section 26.028(g), Water Code, is transferred
30-18    to new Subsection O, Chapter 5, Water Code, redesignated as Section
30-19    5.660, and amended to read as follows:
30-20          Sec. 5.660.  NOTICE REQUIRED TO OBTAIN PERMIT DECISION
30-21    WITHOUT HEARING UNDER SECTION 26.028(a). (a)  Not later [(g)  For
30-22    the purposes of Subsection (c), the commission may act on the
30-23    application without holding a public hearing if all of the
30-24    following conditions are met:]
30-25                [(1)  not less] than 30 days before the date of action
30-26    by the commission on an [the] application for a permit, permit
30-27    amendment, or permit renewal under Chapter 26 [by the commission],
 31-1    the applicant shall publish [has published] the commission's notice
 31-2    of the application at least once in a newspaper regularly published
 31-3    or circulated within each county where the proposed facility or
 31-4    discharge is located and in each county affected by the
 31-5    discharge.[;]
 31-6          (b)  Not later [(2)  not less] than 30 days before the date
 31-7    of action on the application by the commission, the applicant shall
 31-8    serve or mail [has served or mailed] the commission's notice of the
 31-9    application to persons who in the judgment of the commission may be
31-10    affected, including the county judges as required by Section
31-11    5.659(b) [Subsection (b) of this section].  As part of the [his]
31-12    application the applicant shall submit an affidavit which lists the
31-13    names and addresses of the persons who may be affected by the
31-14    application and includes the source of the list[;]
31-15                [(3)  within 30 days after the date of the newspaper
31-16    publication of the commission's notice, neither a commissioner, the
31-17    executive director, nor an affected person who objects to the
31-18    application has requested a public hearing].
31-19          SECTION 2.12. Section 26.040(b), Water Code, is transferred
31-20    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
31-21    5.661, and amended to read as follows:
31-22          Sec. 5.661.  NOTICE OF PROPOSED GENERAL PERMIT TO DISCHARGE
31-23    WASTE INTO OR ADJACENT TO STATE WATERS. (a) [(b)]  The commission
31-24    shall publish notice of a proposed general permit to discharge
31-25    waste into or adjacent to waters in the state under Section 26.040
31-26    in a daily or weekly newspaper of general circulation in the area
31-27    affected by the activity that is the subject of the proposed
 32-1    general permit and in the Texas Register.
 32-2          (b)  For a statewide general permit, the commission shall
 32-3    designate one or more newspapers of statewide or regional
 32-4    circulation and shall publish notice of the proposed statewide
 32-5    general permit in each designated newspaper in addition to the
 32-6    Texas Register.
 32-7          (c)  The notice must include an invitation for written
 32-8    comments by the public to the commission regarding the proposed
 32-9    general permit and shall be published not later than the 30th day
32-10    before the commission adopts the general permit.
32-11          (d)  The commission by rule may require additional notice to
32-12    be given.
32-13          SECTION 2.13. Section 27.018(b), Water Code, is transferred
32-14    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
32-15    5.662, and amended to read as follows:
32-16          Sec. 5.662.  NOTICE OF OPPORTUNITY FOR HEARING ON PERMIT
32-17    APPLICATION FOR INJECTION WELL TO DISPOSE OF INDUSTRIAL AND
32-18    MUNICIPAL WASTE.  [(b)]  The commission by rule shall provide for
32-19    giving notice of the opportunity to request a public hearing on a
32-20    permit application for an injection well to dispose of industrial
32-21    and municipal waste under Chapter 27.  The rules for notice shall
32-22    include provisions for giving notice to local governments and
32-23    affected persons.  The commission shall define "affected person" by
32-24    rule.
32-25          SECTION 2.14. Section 361.063(c), Health and Safety Code, is
32-26    transferred to new Subchapter O, Chapter 5, Water Code,
32-27    redesignated as Section 5.663, and amended to read as follows:
 33-1          Sec. 5.663.  NOTICE OF INTENT TO FILE APPLICATION FOR
 33-2    HAZARDOUS WASTE PERMIT. [(c)]  If an applicant for a permit for a
 33-3    hazardous waste management facility decides to participate in a
 33-4    local review committee process under Section 361.063, Health and
 33-5    Safety Code, the applicant must file with the commission a notice
 33-6    of intent to file an application, setting forth the proposed
 33-7    location and type of hazardous waste management facility.  A copy
 33-8    of the notice shall be delivered to the county judge of the county
 33-9    in which the facility is to be located.  In addition, if the
33-10    proposed facility is to be located in a municipality or the
33-11    extraterritorial jurisdiction of a municipality, a copy of the
33-12    notice shall be delivered to the mayor of the municipality.  [The
33-13    filing of the notice with the commission initiates the
33-14    preapplication review process.]
33-15          SECTION 2.15. Section 361.0665, Health and Safety Code, is
33-16    transferred to new Subchapter O, Chapter 5, Water Code,
33-17    redesignated as Section 5.664, and amended to read as follows:
33-18          Sec. 5.664 [361.0665].  NOTICE OF INTENT TO OBTAIN MUNICIPAL
33-19    SOLID WASTE PERMIT.  (a)  A person who applies for a municipal
33-20    solid waste permit shall publish notice of intent to obtain a
33-21    permit under Chapter 361, Health and Safety Code, [this chapter] at
33-22    least once in a newspaper of the largest general circulation that
33-23    is published in the county in which the facility is located or
33-24    proposed to be located.
33-25          (b)  Notice must include:
33-26                (1)  a description of the location or proposed location
33-27    of the facility;
 34-1                (2)  a statement that a person who may be affected by
 34-2    the facility or proposed facility is entitled to request a hearing
 34-3    from the commission;
 34-4                (3)  the manner in which the commission may be
 34-5    contacted for further information; and
 34-6                (4)  any other information that the commission by rule
 34-7    requires.
 34-8          (c)  If a newspaper is not published in the county, the
 34-9    notice must be published in a newspaper of general circulation in
34-10    the county in which the facility is located or proposed to be
34-11    located and in a newspaper of circulation in the immediate vicinity
34-12    in which the facility is located or proposed to be located as
34-13    defined by commission rule.
34-14          (d)  In addition, the commission shall publish notice in the
34-15    Texas Register.
34-16          SECTION 2.16. Sections 361.079(a) and (c), Health and Safety
34-17    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
34-18    redesignated as Section 5.665, and amended to read as follows:
34-19          Sec. 5.665.  NOTICE OF APPLICATION FOR SOLID WASTE OR
34-20    HAZARDOUS INDUSTRIAL SOLID WASTE PERMIT. (a)  Except as provided by
34-21    Sections  361.080(b) and 361.081(c), Health and Safety Code, the
34-22    commission by rule shall establish procedures for public notice
34-23    [and a public hearing] under Section 361.080 or 361.081, Health and
34-24    Safety Code.
34-25          (b) [(c)]  To improve the timeliness of notice to the public
34-26    of a public hearing under Section 361.080 or 361.081, Health and
34-27    Safety Code, public notice of receipt of the permit application
 35-1    shall be provided at the time a permit application is submitted to
 35-2    the commission.
 35-3          SECTION 2.17. Sections 361.0791(e), (f), and (g),  Health and
 35-4    Safety Code, are transferred to new Subchapter O, Chapter 5, Water
 35-5    Code, redesignated as Section 5.666, and amended to read as
 35-6    follows:
 35-7          Sec. 5.666.  NOTICE OF REQUIRED PUBLIC MEETING ON APPLICATION
 35-8    FOR PERMIT FOR NEW HAZARDOUS WASTE MANAGEMENT FACILITY. (a) [(e)]
 35-9    If a meeting is required under Section 361.0791(a), Health and
35-10    Safety Code [Subsection (a)], not less than once each week during
35-11    the three weeks preceding a public meeting, the applicant shall
35-12    publish notice of the meeting in the newspaper of the largest
35-13    general circulation that is published in the county in which the
35-14    proposed facility is to be located or, if no newspaper is published
35-15    in the county, in a newspaper of general circulation in the county.
35-16    The applicant shall provide the commission an affidavit certifying
35-17    that the notice was given as required by this section.  Acceptance
35-18    of the affidavit creates a rebuttable presumption that the
35-19    applicant has complied with this section.
35-20          (b) [(f)]  The published notice may not be smaller than 96.8
35-21    square centimeters or 15 square inches with the shortest dimension
35-22    at least 7.6 centimeters or three inches and shall contain, at a
35-23    minimum, the following information:
35-24                (1)  the permit application number;
35-25                (2)  the applicant's name;
35-26                (3)  the proposed location of the facility; and
35-27                (4)  the location and availability of copies of the
 36-1    permit application.
 36-2          (c) [(g)]  The applicant shall pay the cost of notice
 36-3    required to be provided under this section.  The commission by rule
 36-4    may establish procedures for payment of those costs.
 36-5          SECTION 2.18. Sections 361.081(a) and (b), Health and Safety
 36-6    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
 36-7    redesignated as Section 5.667, and amended to read as follows:
 36-8          Sec. 5.667.  NOTICE OF HEARING ON APPLICATION FOR SOLID WASTE
 36-9    FACILITY. (a)  The [commission shall require the] applicant shall
36-10    [to] mail notice to each residential or business address located
36-11    within one-half mile of a new solid waste management facility and
36-12    to each owner of real property located within one-half mile of a
36-13    new solid waste management facility listed in the real property
36-14    appraisal records of the appraisal district in which the solid
36-15    waste management facility is sought to be permitted under Chapter
36-16    361, Health and Safety Code, as of the date the commission
36-17    determines the permit application is administratively complete. The
36-18    notice must be sent by mail and must be deposited with the United
36-19    States postal service not more than 45 days or less than 30 days
36-20    before the date of the hearing.
36-21          (b)  The applicant must certify to the commission that the
36-22    mailings were deposited as required by Subsection (a).  Acceptance
36-23    of the certification creates a rebuttable presumption that the
36-24    applicant has complied with this section.  Substantial compliance
36-25    with the notice requirements of Subsection (a) is sufficient for
36-26    the commission to exercise jurisdiction over an application for a
36-27    solid waste facility.
 37-1          SECTION 2.19. Section 361.082(c), Health and Safety Code, is
 37-2    transferred to new Subchapter O, Chapter 5, Water Code,
 37-3    redesignated as Section 5.668, and amended to read as follows:
 37-4          Sec. 5.668.  NOTICE OF PUBLIC HEARING ON APPLICATION FOR
 37-5    HAZARDOUS WASTE PERMIT. [(c)]  The commission by rule shall
 37-6    establish procedures for public notice of a [and] public hearing on
 37-7    an application for a hazardous waste permit under Section 361.082,
 37-8    Health and Safety Code. At a minimum, the rules shall include the
 37-9    public notice requirements set forth in Section 5.667 [361.081].
37-10          SECTION 2.20. Sections 361.089(b) and (c), Health and Safety
37-11    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
37-12    redesignated as Section 5.669, and amended to read as follows:
37-13          Sec. 5.669.  NOTICE REGARDING DENIAL OR AMENDMENT OF SOLID
37-14    WASTE PERMIT. (a)  The [(b)  Except as provided by Section 361.110,
37-15    the] commission shall notify each governmental entity listed under
37-16    Section 361.067, Health and Safety Code, regarding possible
37-17    commission action to deny or amend a solid waste permit under
37-18    Section 361.089, Health and Safety Code [and provide an opportunity
37-19    for a hearing to the permit holder or applicant and persons
37-20    affected.  The commission may also hold a hearing on its own
37-21    motion].
37-22          (b) [(c)]  The commission by rule shall establish procedures
37-23    for public notice of [and] any public hearing on the denial or
37-24    amendment of a solid waste permit under Section 361.089, Health and
37-25    Safety Code [this section].
37-26          SECTION 2.21. Section 382.017(b), Health and Safety Code, is
37-27    transferred to Subchapter O, Chapter 5, Water Code, redesignated as
 38-1    Section 5.670, and amended to read as follows:
 38-2          Sec. 5.670.  NOTICE OF HEARING ON ADOPTION OF STATEWIDE RULE
 38-3    RELATING TO AIR POLLUTION. [(b)]  If a [the] rule adopted under
 38-4    Section 382.017, Health and Safety Code, will have statewide
 38-5    effect, notice of the date, time, place, and purpose of the hearing
 38-6    shall be published one time at least 20 days before the scheduled
 38-7    date of the hearing in at least three newspapers, the combined
 38-8    circulation of which will, in the commission's judgment, give
 38-9    reasonable circulation throughout the state.  If the rule will have
38-10    effect in only a part of the state, the notice shall be published
38-11    one time at least 20 days before the scheduled date of the hearing
38-12    in a newspaper of general circulation in the area to be affected.
38-13          SECTION 2.22. Section 382.0516, Health and Safety Code, is
38-14    transferred to new Subchapter O, Chapter 5, Water Code,
38-15    redesignated as Section 5.671, and amended to read as follows:
38-16          Sec. 5.671 [382.0516].  NOTICE TO STATE SENATOR AND
38-17    REPRESENTATIVE OF RECEIPT OF PERMIT APPLICATION FOR A FACILITY THAT
38-18    MAY EMIT AIR CONTAMINANTS.  On receiving an application under
38-19    Chapter 382, Health and Safety Code, for a construction permit, a
38-20    special permit, or an operating permit for a facility that may emit
38-21    air contaminants, the commission shall send notice of the
38-22    application to the state senator and representative who represent
38-23    the area in which the facility is or will be located.
38-24          SECTION 2.23.  Section 382.055(c), Health and Safety Code, is
38-25    transferred to new Subchapter O, Chapter 5, Water Code,
38-26    redesignated as Section 5.672, and amended to read as follows:
38-27          Sec. 5.672.  NOTICE TO PERMIT HOLDER OF REVIEW AND RENEWAL OF
 39-1    PRECONSTRUCTION PERMIT. [(c)]  Not less than 180 days before the
 39-2    date on which an [the renewal] application for renewal of a
 39-3    preconstruction permit is due under Section 382.055, Health and
 39-4    Safety Code, the commission shall provide written notice to the
 39-5    permit holder, by registered or certified mail, that the permit is
 39-6    scheduled for review in accordance with this section.  The notice
 39-7    must include a description of the procedure for filing a renewal
 39-8    application and the information to be included in the application.
 39-9          SECTION 2.24. Sections 382.056(a)-(c), (g), and (i), Health
39-10    and Safety Code, are transferred to new Subchapter O, Chapter 5,
39-11    Water Code, redesignated as Section 5.673, and amended to read as
39-12    follows:
39-13          Sec. 5.673.  NOTICE OF INTENT TO OBTAIN PRECONSTRUCTION
39-14    PERMIT OR PERMIT REVIEW. (a)  An applicant for a permit under
39-15    Section 382.0518, Health and Safety Code, or a permit renewal
39-16    review under Section 382.055, Health and Safety Code, shall publish
39-17    notice of intent to obtain the permit or permit review not later
39-18    than the 30th day after the date the commission determines the
39-19    application to be administratively complete.  The commission by
39-20    rule shall require an applicant for a federal operating permit
39-21    under Section 382.054, Health and Safety Code, to publish notice of
39-22    intent to obtain a permit or permit review consistent with federal
39-23    requirements and with the requirements of Subsection (b). The
39-24    applicant shall publish the notice at least once in a newspaper of
39-25    general circulation in the municipality in which the facility or
39-26    federal source is located or is proposed to be located or in the
39-27    municipality nearest to the location or proposed location of the
 40-1    facility or federal source.  If the elementary or middle school
 40-2    nearest to the facility or proposed facility provides a bilingual
 40-3    education program as required by Subchapter B, Chapter 29,
 40-4    Education Code, the applicant shall also publish the notice at
 40-5    least once in an additional publication of general circulation in
 40-6    the municipality or county in which the facility is located or
 40-7    proposed to be located that is published in the language taught in
 40-8    the bilingual education program.  This requirement is waived if
 40-9    such a publication does not exist or if the publisher refuses to
40-10    publish the notice.  The commission by rule shall prescribe the
40-11    form and content of the notice and when notice must be published.
40-12    The commission may require publication of additional notice.  The
40-13    commission by rule shall prescribe alternative procedures for
40-14    publication of the notice in a newspaper if the applicant is a
40-15    small business stationary source as defined by Section 382.0365,
40-16    Health and Safety Code, and will not have a significant effect on
40-17    air quality.  The alternative procedures must be cost-effective
40-18    while ensuring adequate notice.  Notice required to be published
40-19    under this section shall only be required to be published in the
40-20    United States.
40-21          (b)  The notice must include:
40-22                (1)  a description of the location or proposed location
40-23    of the facility or federal source;
40-24                (2)  the location at which a copy of the application is
40-25    available for review and copying as provided by Section 382.056(b),
40-26    Health and Safety Code [Subsection (d)];
40-27                (3)  a description, including a telephone number, of
 41-1    the manner in which the commission may be contacted for further
 41-2    information;
 41-3                (4)  a description, including a telephone number, of
 41-4    the manner in which the applicant may be contacted for further
 41-5    information;
 41-6                (5)  a description of the procedural rights and
 41-7    obligations of the public, printed in a font style or size that
 41-8    clearly provides emphasis and distinguishes it from the remainder
 41-9    of the notice, that includes a statement that a person who may be
41-10    affected by emissions of air contaminants from the facility,
41-11    proposed facility, or federal source is entitled to request a
41-12    hearing from the commission;
41-13                (6)  a description of the procedure by which a person
41-14    may be placed on a mailing list in order to receive additional
41-15    information about the application;
41-16                (7)  the time and location of any public meeting to be
41-17    held under Section 382.056(c), Health and Safety Code [Subsection
41-18    (e)]; and
41-19                (8)  any other information the commission by rule
41-20    requires.
41-21          (c)  At the site of a facility, proposed facility, or federal
41-22    source for which an applicant is required to publish notice under
41-23    this section, the applicant shall place a sign declaring the filing
41-24    of an application for a permit or permit review for a facility at
41-25    the site and stating the manner in which the commission may be
41-26    contacted for further information.  The commission shall adopt any
41-27    rule necessary to carry out this subsection.
 42-1          (d) [(g)]  If, in response to the notice published under
 42-2    Subsection (a) for a permit under Section 382.0518, Health and
 42-3    Safety Code, or a permit renewal review under Section 382.055,
 42-4    Health and Safety Code, a person requests during the period
 42-5    provided by commission rule that the commission hold a public
 42-6    hearing and the request is not withdrawn before the date the
 42-7    preliminary decision is issued, the applicant shall publish notice
 42-8    of the preliminary decision in a newspaper, and the commission
 42-9    shall seek public comment on the preliminary decision[.  The
42-10    commission shall consider the request for public hearing under the
42-11    procedures provided by Subsections (i)-(n).  The commission may not
42-12    seek further public comment or hold a public hearing under the
42-13    procedures provided by Subsections (i)-(n) in response to a request
42-14    for a public hearing on an amendment, modification, or renewal that
42-15    would not result in an increase in allowable emissions and would
42-16    not result in the emission of an air contaminant not previously
42-17    emitted].
42-18          (e) [(i)]  The commission by rule shall establish the form
42-19    and content of the notice, the manner of publication, and the
42-20    duration of the public comment period.  The notice must include:
42-21                (1)  the information required by Subsection (b);
42-22                (2)  a summary of the preliminary decision;
42-23                (3)  the location at which a copy of the preliminary
42-24    decision is available for review and copying as provided by Section
42-25    382.056(g), Health and Safety Code [Subsection (j)];
42-26                (4)  a description of the manner in which comments
42-27    regarding the preliminary decision may be submitted; and
 43-1                (5)  any other information the commission by rule
 43-2    requires.
 43-3          (f)  This section does not apply to:
 43-4                (1)  the relocation or change of location of a portable
 43-5    facility to a site where a facility permitted by the commission is
 43-6    located; or
 43-7                (2)  a facility located temporarily in the
 43-8    right-of-way, or contiguous to the right-of-way, of a public works
 43-9    project.
43-10          SECTION 2.25. Section 382.0561(f), Health and Safety Code, is
43-11    transferred to new Subchapter O, Chapter 5, Water Code,
43-12    redesignated as Section 5.674, and amended to read as follows:
43-13          Sec. 5.674.  NOTICE OF COMMENT PERIOD AND HEARING ON FEDERAL
43-14    OPERATING PERMIT. [(f)]  Notice of the public comment period and
43-15    opportunity for a hearing on an application for issuance, revision,
43-16    reopening, or renewal of a federal operating permit under Section
43-17    382.0561, Health and Safety Code, [this section] shall be published
43-18    in accordance with Section 5.673 [382.056].
43-19          SECTION 2.26. Section 382.0562, Health and Safety Code, is
43-20    transferred to new Subchapter O, Chapter 5, Water Code,
43-21    redesignated as Section 5.675, and amended to read as follows:
43-22          Sec. 5.675 [382.0562].  NOTICE OF DECISION ON FEDERAL
43-23    OPERATING PERMIT. (a)  The commission or its designee shall send
43-24    notice of a proposed final action on a federal operating permit
43-25    under Section 382.0542, Health and Safety Code, by first-class mail
43-26    to the applicant and all persons who comment during the public
43-27    comment period or at the public hearing.  The notice shall include
 44-1    a response to any comment submitted during the public comment
 44-2    period and shall identify any change in the conditions of the draft
 44-3    permit and the reasons for the change.
 44-4          (b)  The notice required by Subsection (a) shall:
 44-5                (1)  state that any person affected by the decision of
 44-6    the commission or its designee may petition the administrator in
 44-7    accordance with Section 382.0563, Health and Safety Code, and rules
 44-8    adopted under that section;
 44-9                (2)  state the date by which the petition must be
44-10    filed; and
44-11                (3)  explain the petition process.
44-12          SECTION 2.27. New Subchapter O, Chapter 5, Water Code, is
44-13    amended by adding Sections 5.676 and 5.677 to read as follows:
44-14          Sec. 5.676.  NOTICE OF HEARING ON ISSUANCE OR RENEWAL OF
44-15    LICENSE TO DISPOSE OF LOW-LEVEL RADIOACTIVE WASTE. (a)  Notice of a
44-16    hearing on the issuance or renewal of a license to dispose of
44-17    low-level radioactive waste under Section 401.114, Health and
44-18    Safety Code, shall be given as provided by this section and Section
44-19    401.114, Health and Safety Code.
44-20          (b)  In addition to other notice, the commission shall
44-21    publish notice of the hearing in the manner provided by Chapter
44-22    313, Government Code, in the county in which the proposed facility
44-23    is to be located.  The notice shall state the subject and the time,
44-24    place, and date of the hearing.
44-25          (c)  The commission shall mail, by certified mail in the
44-26    manner provided by the commission's rules, written notice to each
44-27    person who owns property adjacent to the proposed site.  The notice
 45-1    must be mailed not later than the 31st day before the date of the
 45-2    hearing and must include the same information that is in the
 45-3    published notice.  If true, the commission or the applicant must
 45-4    certify that the notice was mailed as required by this subsection,
 45-5    and at the hearing the certificate is conclusive evidence of the
 45-6    mailing.
 45-7          Sec. 5.677.  NOTICE OF AMENDMENT TO LICENSE TO DISPOSE OF
 45-8    LOW-LEVEL RADIOACTIVE WASTE. (a)  The commission shall publish
 45-9    notice of an amendment to a license to dispose of low-level
45-10    radioactive waste under Section 401.116, Health and Safety Code,
45-11    once in the Texas Register and in a newspaper of general
45-12    circulation in the county in which the licensed activity is located
45-13    and shall give notice to any person who has notified the agency, in
45-14    advance, of the desire to receive notice of proposed amendment of
45-15    the license.
45-16          (b)  Notice under this section must include:
45-17                (1)  the identity of the license holder;
45-18                (2)  identification of the license; and
45-19                (3)  a short and plain statement of the license
45-20    amendment's substance.
45-21                             ARTICLE 3.  FEES
45-22          SECTION 3.01. Chapter 5, Water Code, is amended by adding a
45-23    heading for Subchapter P to read as follows:
45-24                            SUBCHAPTER P.  FEES
45-25          SECTION 3.02. Section 5.235, Water Code, is transferred to
45-26    new Subchapter P, Chapter 5, Water Code, and redesignated as
45-27    Section 5.701 to read as follows:
 46-1          Sec. 5.701 [5.235].  FEES. (a)  The executive director shall
 46-2    charge and collect the fees prescribed by law.  The executive
 46-3    director shall make a record of fees prescribed when due and shall
 46-4    render an account to the person charged with the fees.  Each fee is
 46-5    a separate charge and is in addition to other fees unless provided
 46-6    otherwise.  Except as otherwise provided, a fee assessed and
 46-7    collected under this section shall be deposited to the credit of
 46-8    the water resource management account.
 46-9                (1)  Notwithstanding other provisions, the commission
46-10    by rule may establish due dates, schedules, and procedures for
46-11    assessment, collection, and remittance of fees due the commission
46-12    to ensure the cost-effective administration of revenue collection
46-13    and cash management programs.
46-14                (2)  Notwithstanding other provisions, the commission
46-15    by rule shall establish uniform and consistent requirements for the
46-16    assessment of penalties and interest for late payment of fees owed
46-17    the state under the commission's jurisdiction.  Penalties and
46-18    interest established under this section shall not exceed rates
46-19    established for delinquent taxes under Sections 111.060 and
46-20    111.061, Tax Code.
46-21          (b)  Except as otherwise provided by law, the fee for filing
46-22    an application or petition is $100 plus the cost of any required
46-23    notice.  The fee for a by-pass permit shall be set by the
46-24    commission at a reasonable amount to recover costs, but not less
46-25    than $100.
46-26          (c)  The fee for filing a water permit application is $100
46-27    plus the cost of required notice.
 47-1          (d)  The fee for filing an application for fixing or
 47-2    adjusting rates is $100 plus the cost of required notice.
 47-3          (e)  A person who files with the commission a petition for
 47-4    the creation of a water district or addition of sewage and drainage
 47-5    powers or a resolution for a water district conversion must pay a
 47-6    one-time nonrefundable application fee.  The commission by rule may
 47-7    set the application fee in an amount not to exceed the costs of
 47-8    reviewing and processing the application, plus the cost of required
 47-9    notice.  This fee is the only fee that the commission may charge
47-10    with regard to the processing of an application for creation of a
47-11    water district, addition of sewage or drainage powers, or
47-12    conversion under this code.
47-13          (f)  A person who files a bond issue application with the
47-14    commission must pay an application fee set by the commission.  The
47-15    commission by rule may set the application fee in an amount not to
47-16    exceed the costs of reviewing and processing the application, plus
47-17    the cost of required notice.  If the bonds are approved by the
47-18    commission, the seller shall pay to the commission a percentage of
47-19    the bond proceeds not later than the seventh business day after
47-20    receipt of the bond proceeds.  The commission by rule may set the
47-21    percentage of the proceeds in an amount not to exceed 0.25 percent
47-22    of the principal amount of the bonds actually issued. Proceeds of
47-23    the fees shall be used to supplement any other funds available for
47-24    paying expenses of the commission in supervising the various bond
47-25    and construction activities of the districts filing the
47-26    applications.
47-27          (g)  The fee for recording an instrument in the office of the
 48-1    commission is $1.25 per page.
 48-2          (h)  The fee for the use of water for irrigation is 50 cents
 48-3    per acre to be irrigated.
 48-4          (i)  The fee for impounding water, except under Section
 48-5    11.142 of this code, is 50 cents per acre-foot of storage, based on
 48-6    the total holding capacity of the reservoir at normal operating
 48-7    level.
 48-8          (j)  The fee for other uses of water not specifically named
 48-9    in this section is $1 per acre-foot, except that no political
48-10    subdivision may be required to pay fees to use water for recharge
48-11    of underground freshwater-bearing sands and aquifers or for
48-12    abatement of natural pollution.
48-13          (k)  A fee charged under Subsections (h) through (j) of this
48-14    section for one use of water under a permit from the commission may
48-15    not exceed $50,000. The fee for each additional use of water under
48-16    a permit for which the maximum fee is paid may not exceed $10,000.
48-17          (l)  The fees prescribed by Subsections (h) through (j) of
48-18    this section are one-time fees, payable when the application for an
48-19    appropriation is made.   However, if the total fee for a permit
48-20    exceeds $1,000, the applicant shall pay one-half of the fee when
48-21    the application is filed and one-half within 180 days after notice
48-22    is mailed to him that the permit is granted.  If the applicant does
48-23    not pay all of the amount owed before beginning to use water under
48-24    the permit, the permit is annulled.
48-25          (m)  If a permit is annulled, the matter reverts to the
48-26    status of a pending, filed application and, on the payment of use
48-27    fees as provided by Subsections (h) through (l) of this section
 49-1    together with sufficient postage fees for mailing notice of
 49-2    hearing, the commission shall set the application for hearing and
 49-3    proceed as provided by this code.
 49-4          (n)(1)  Each provider of potable water or sewer utility
 49-5    service shall collect a regulatory assessment from each retail
 49-6    customer as follows:
 49-7                      (A)  A public utility as defined in Section
 49-8    13.002 of this code shall collect from each retail customer a
 49-9    regulatory assessment equal to one percent of the charge for retail
49-10    water or sewer service.
49-11                      (B)  A water supply or sewer service corporation
49-12    as defined in Section 13.002 of this code shall collect from each
49-13    retail customer a regulatory assessment equal to one-half of one
49-14    percent of the charge for retail water or sewer service.
49-15                      (C)  A district as defined in Section 49.001 of
49-16    this code that provides potable water or sewer utility service to
49-17    retail customers shall collect from each retail customer a
49-18    regulatory assessment equal to one-half of one percent of the
49-19    charge for retail water or sewer service.
49-20                (2)  The regulatory assessment may be listed on the
49-21    customer's bill as a separate item and shall be collected in
49-22    addition to other charges for utility services.
49-23                (3)  The commission shall use the assessments collected
49-24    under this subsection solely to pay costs and expenses incurred by
49-25    the commission in the regulation of districts, water supply or
49-26    sewer service corporations, and public utilities under Chapter 13,
49-27    Water Code.
 50-1                (4)  The commission shall annually use a portion of the
 50-2    assessments to provide on-site technical assistance and training to
 50-3    public utilities, water supply or sewer service corporations, and
 50-4    districts.  The commission shall contract with others to provide
 50-5    the services.
 50-6                (5)  The commission by rule may establish due dates,
 50-7    collection procedures, and penalties for late payment related to
 50-8    regulatory assessments under this subsection.  The executive
 50-9    director shall collect all assessments from the utility service
50-10    providers.
50-11                (6)  The commission shall assess a penalty against a
50-12    municipality with a population of more than 1.5 million that does
50-13    not provide municipal water and sewer services in an annexed area
50-14    in accordance with Section 43.0565, Local Government Code.  A
50-15    penalty assessed under this paragraph shall be not more than $1,000
50-16    for each day the services are not provided after March 1, 1998, for
50-17    areas annexed before January 1, 1993, or not provided within 4 1/2
50-18    years after the effective date of the annexation for areas annexed
50-19    on or after January 1, 1993.  A penalty collected under this
50-20    paragraph shall be deposited to the credit of the water resource
50-21    management account to be used to provide water and sewer service to
50-22    residents of the city.
50-23                (7)  The regulatory assessment does not apply to water
50-24    that has not been treated for the purpose of human consumption.
50-25          (o)  A fee imposed under Subsection (j) of this section for
50-26    the use of saline tidal water for industrial processes shall be $1
50-27    per acre-foot of water diverted for the industrial process, not to
 51-1    exceed a total fee of $5,000.
 51-2          SECTION 3.03. New Subchapter P, Chapter 5, Water Code, is
 51-3    amended by adding Sections 5.702-5.707 to read as follows:
 51-4          Sec. 5.702.  PAYMENT OF FEES REQUIRED WHEN DUE. (a)  A fee
 51-5    due the commission under this code or the Health and Safety Code
 51-6    shall be paid on the date the fee is due, regardless of whether the
 51-7    fee is billed by the commission to the person required to pay the
 51-8    fee or is calculated and paid to the commission by the person
 51-9    required to pay the fee.
51-10          (b)  A person required to pay a fee to the commission may not
51-11    dispute the assessment of or amount of a fee before the fee has
51-12    been paid in full.
51-13          Sec. 5.703.  FEE ADJUSTMENTS. (a)  The commission may not
51-14    consider adjusting the amount of a fee due the commission under
51-15    this code or the Health and Safety Code:
51-16                (1)  before the fee has been paid in full; or
51-17                (2)  if the request for adjustment is received after
51-18    the first anniversary of the date on which the fee was paid in
51-19    full.
51-20          (b)  A person who pays an amount that exceeds the amount of
51-21    the fee due because the commission incorrectly calculated the fee
51-22    or the person made a duplicate payment may request a refund of the
51-23    excess amount paid before the fourth anniversary of the date on
51-24    which the excess amount was paid.
51-25          (c)  A request for a refund or credit in an amount that
51-26    exceeds $5,000 shall be forwarded for approval to the commission
51-27    fee audit staff, together with an explanation of the grounds for
 52-1    the requested refund or credit.  Approval of a refund or credit
 52-2    does not prevent the fee audit staff from conducting a subsequent
 52-3    audit of the person for whom the refund or credit was approved.
 52-4          Sec. 5.704.  NOTICE OF CHANGE IN PAYMENT PROCEDURE. The
 52-5    commission shall promptly notify each person required to pay a
 52-6    commission fee under this code or the Health and Safety Code of any
 52-7    change in fee payment procedures.
 52-8          Sec. 5.705.  NOTICE OF VIOLATION. (a)  The commission may
 52-9    issue a notice of violation to a person required to pay a
52-10    commission fee under this code or the Health and Safety Code for
52-11    knowingly violating reporting requirements or knowingly calculating
52-12    the fee in an amount less than the amount actually due.
52-13          (b)  The executive director may modify audit findings
52-14    reported by a commission fee auditor only if the executive director
52-15    provides a written explanation showing good cause for the
52-16    modification.
52-17          Sec. 5.706.  PENALTIES AND INTEREST ON DELINQUENT FEES. (a)
52-18    Except as otherwise provided by law, the commission may collect,
52-19    for a delinquent fee due the commission under this code or the
52-20    Health and Safety Code:
52-21                (1)  a penalty in an amount equal to five percent of
52-22    the amount of the fee due, if the fee is not paid on or before the
52-23    day on which the fee is due; and
52-24                (2)  an additional penalty in an amount equal to five
52-25    percent of the amount due, if the fee is not paid on or before the
52-26    30th day after the date on which the fee was due.
52-27          (b)  Unless otherwise required by law interest accrues,
 53-1    beginning on the 61st day after the date on which the fee was due,
 53-2    on the total amount of fee and penalties that have not been paid on
 53-3    or before the 61st day after the date on which the fee was due.
 53-4    The yearly interest rate is the rate of interest established for
 53-5    delinquent taxes under Section 111.060, Tax Code.
 53-6          (c)  The executive director may modify a penalty or interest
 53-7    on a fee and penalties authorized by this section if the executive
 53-8    director provides a written explanation showing good cause for the
 53-9    modification.
53-10          (d)  Penalties and interest collected by the commission under
53-11    this section or under other law, unless that law otherwise
53-12    provides, shall be deposited to the credit of the fund or account
53-13    to which the fee is required to be deposited.
53-14          Sec. 5.707.  TRANSFERABILITY OF FUNDS DERIVED FROM FEES.
53-15    Notwithstanding any law restricting the use of a fee collected by
53-16    the commission and to the extent consistent with federal law and
53-17    authorized by the General Appropriations Act, the commission may
53-18    transfer a percentage of fee revenue dedicated to one commission
53-19    activity to one or more other commission activities.
53-20                 ARTICLE 4.  PERFORMANCE-BASED REGULATION
53-21          SECTION 4.01. Chapter 5, Water Code, is amended by adding
53-22    Subchapter Q to read as follows:
53-23                SUBCHAPTER Q.  PERFORMANCE-BASED REGULATION
53-24          Sec. 5.751.  DEFINITIONS. In this subchapter:
53-25                (1)  "Flexible permitting" means the issuance of a
53-26    flexible permit that allows for physical or operational changes as
53-27    provided by commission rule.
 54-1                (2)  "Innovative regulatory program" includes a program
 54-2    required by statute or developed by commission rule.
 54-3                (3)  "Permit" includes a license, certificate,
 54-4    registration, approval, or other form of authorization issued by
 54-5    the commission under this code or the Health and Safety Code.
 54-6          Sec. 5.752.  REGULATORY TIERS AND PERFORMANCE INCENTIVES. (a)
 54-7    In this section, "environmental regulations" include:
 54-8                (1)  federal and state laws that regulate environmental
 54-9    matters;
54-10                (2)  rules adopted or orders issued under federal or
54-11    state law; and
54-12                (3)  terms of a permit or other authorization issued by
54-13    the commission or another agency with environmental regulatory
54-14    authority.
54-15          (b)  The commission shall develop a strategically directed
54-16    regulatory structure based on incentives and compliance
54-17    performance.  To implement this regulatory structure, the
54-18    commission by rule shall establish regulatory tiers and performance
54-19    incentives in which relative levels of compliance with
54-20    environmental regulations are used to determine eligibility for
54-21    participation in innovative regulatory programs.
54-22          (c)  The rules must define the regulatory tiers in a manner
54-23    adequate to distinguish among:
54-24                (1)  poor performers, or regulated entities with a
54-25    continual or pervasive disregard of environmental regulations;
54-26                (2)  average performers, or regulated entities that
54-27    generally comply with environmental regulations; and
 55-1                (3)  high performers, or regulated entities that have
 55-2    an above-average compliance record and in addition voluntarily
 55-3    implement environmentally sound practices beyond those required by
 55-4    environmental regulations.
 55-5          (d)  The rules must prescribe the programs and incentives
 55-6    available to regulated entities within each regulatory tier and
 55-7    must be revised as necessary to include new programs  or incentives
 55-8    as they are developed.
 55-9          (e)  The commission shall determine a regulated entity's
55-10    compliance history, for purposes of eligibility to participate in
55-11    an innovative regulatory program or incentive, according to the
55-12    method developed under Section 5.754.
55-13          Sec. 5.753.  COORDINATION OF INNOVATIVE REGULATORY PROGRAMS
55-14    AND INCENTIVES. (a)  The commission shall designate a single point
55-15    of contact within the agency to coordinate all innovative
55-16    regulatory programs and incentives.
55-17          (b)  The designated coordinator shall:
55-18                (1)  inventory, coordinate, and market all innovative
55-19    regulatory programs and incentives;
55-20                (2)  provide information and technical assistance to
55-21    regulated entities participating in or interested in participating
55-22    in those programs and incentives; and
55-23                (3)  work with the pollution prevention advisory
55-24    committee to assist the commission in integrating the concepts of
55-25    regulatory innovation and incentive- and performance-based
55-26    regulation into its daily operations, including:
55-27                      (A)  program administration;
 56-1                      (B)  strategic planning; and
 56-2                      (C)  staff training.
 56-3          Sec. 5.754.  COMPONENTS OF AND STANDARDS FOR EVALUATING
 56-4    COMPLIANCE HISTORY. (a)  The commission by rule shall develop a
 56-5    single set of components of and standards for evaluating the
 56-6    compliance history of an applicant or permit holder and shall
 56-7    consistently apply those components and standards in evaluating
 56-8    compliance history in all permitting and enforcement matters under
 56-9    the commission's jurisdiction.
56-10          (b)  In developing the components and standards required by
56-11    Subsection (a), the commission:
56-12                (1)  shall include, among other factors to be
56-13    considered:
56-14                      (A)  notices of violations and enforcement
56-15    actions, enforcement orders, orders issued under Section 7.070,
56-16    court judgments, and criminal convictions of this state and the
56-17    federal government relating to compliance with an environmental
56-18    law, regulation, permit, order, consent decree, or other regulation
56-19    within the jurisdiction of the commission or the United States
56-20    Environmental Protection Agency;
56-21                      (B)  a determination of whether a violation is
56-22    significant or minor, according to commission rules;
56-23                      (C)  the period to be considered when determining
56-24    a regulated entity's compliance history; and
56-25                      (D)  enforcement orders, court judgments, and
56-26    criminal convictions under environmental laws in other states, to
56-27    the extent readily available to the commission; and
 57-1                (2)  shall specify that a repeat violator is an entity
 57-2    that has more than one violation of the same or similar type within
 57-3    the period established by the commission under Subdivision (1)(C).
 57-4          (c)  The commission shall consider changes in ownership when
 57-5    tracking the compliance history of a regulated entity.
 57-6          Sec. 5.755.  REPORTS. (a)  The commission shall collect data
 57-7    on:
 57-8                (1)  the results of inspections conducted by the
 57-9    commission;
57-10                (2)  the number and percentage of all violations
57-11    committed by repeat offenders;
57-12                (3)  the number and percentage of enforcement orders
57-13    issued by the commission that are issued to entities that have been
57-14    the subject of a previous enforcement order; and
57-15                (4)  whether the violations are significant or minor,
57-16    as defined by commission rule.
57-17          (b)  The commission annually shall prepare a comparative
57-18    analysis of data evaluating the performance, over time, of the
57-19    commission and of entities regulated by the commission.
57-20          (c)  The commission must include in the annual enforcement
57-21    report required by Section 5.123, as added by Chapters 304 and
57-22    1082, Acts of the 75th Legislature, Regular Session, 1997, the
57-23    comparative performance analysis required by Subsection (b),
57-24    organized by region and by regulated medium.
57-25          Sec. 5.756.  PERFORMANCE ASSESSMENT FOR PROGRAM ELIGIBILITY.
57-26    (a)  The commission by rule shall develop a method of performance
57-27    assessment that differentiates persons regulated by the commission
 58-1    according to their compliance histories.
 58-2          (b)  The commission shall use the method of performance
 58-3    assessment developed under Subsection (a) in conjunction with the
 58-4    regulatory structure developed under Section 5.752 to determine
 58-5    eligibility for participation in incentive-based programs and other
 58-6    innovative regulatory programs developed by the commission.
 58-7          (c)  The commission by rule shall establish methods of
 58-8    assessing the performance of regulated entities not routinely
 58-9    inspected for compliance.  The methods may include requiring a
58-10    compliance inspection to determine an entity's eligibility for
58-11    participation in a program or incentive that requires an
58-12    above-average degree of compliance.
58-13          (d)  Commission rules shall provide that a regulated person
58-14    with a compliance history that is unacceptable under this section
58-15    and Section 5.752 is not eligible to participate in innovative
58-16    regulatory programs or incentives.
58-17          Sec. 5.757.  PERFORMANCE ASSESSMENT FOR PERMITTING AND
58-18    ENFORCEMENT DECISIONS. The commission by rule shall develop
58-19    guidelines for the use of compliance history in commission
58-20    decisions regarding:
58-21                (1)  the issuance, renewal, or denial of a permit or
58-22    other authorization issued by the commission; and
58-23                (2)  enforcement matters under the commission's
58-24    jurisdiction.
58-25          Sec. 5.758.  ANNOUNCED INSPECTIONS. (a)  The commission may
58-26    not announce an inspection of a facility owned or operated by a
58-27    person regulated by the commission unless the person has
 59-1    established a good compliance history that qualifies the person for
 59-2    announced inspections under the procedures and standards developed
 59-3    under Sections 5.752 and 5.756.
 59-4          (b)  The commission shall track whether inspections are
 59-5    announced or unannounced and shall include the information in the
 59-6    report required by Section 5.123, as added by Chapters 304 and
 59-7    1082, Acts of the 75th Legislature, Regular Session, 1997.
 59-8          Sec. 5.759.  ELIGIBILITY FOR FLEXIBLE PERMITTING. A regulated
 59-9    entity is not eligible for flexible permitting unless the entity
59-10    has established a better than average compliance history in
59-11    comparison with entities operating under an ordinary permit.
59-12          SECTION 4.02. Section 5.123, Water Code, as added by Chapter
59-13    1203, Acts of the 75th Legislature, Regular Session, 1997, is
59-14    transferred to new Subchapter Q, Chapter 5, Water Code,
59-15    redesignated as Section 5.760, and amended to read as follows:
59-16          Sec. 5.760 [5.123].  REGULATORY FLEXIBILITY. (a)  The
59-17    commission by order may exempt an applicant from a requirement of a
59-18    statute or commission rule regarding the control or abatement of
59-19    pollution if the applicant proposes to control or abate pollution
59-20    by an alternative method or by applying an alternative standard
59-21    that is:
59-22                (1)  more [at least as] protective of the environment
59-23    and the public health than [as] the method or standard prescribed
59-24    by the statute or commission rule that would otherwise apply; and
59-25                (2)  not inconsistent with federal law.
59-26          (b)  The commission may not exempt an applicant under this
59-27    section unless the applicant can present to the commission
 60-1    documented evidence of benefits to environmental quality that will
 60-2    result from the project the applicant proposes.
 60-3          (c)  The commission by rule shall specify the procedure for
 60-4    obtaining an exemption under this section.  The rules must provide
 60-5    for public notice and for public participation in a proceeding
 60-6    involving an application for an exemption under this section.
 60-7          (d) [(c)]  The commission's order must provide a specific
 60-8    description of the alternative method or standard and condition the
 60-9    exemption on compliance with the method or standard as the order
60-10    prescribes.
60-11          (e) [(d)]  The commission by rule may establish a reasonable
60-12    fee for applying for an exemption under this section.
60-13          (f) [(e)]  A violation of an order issued under this section
60-14    is punishable as if it were a violation of the statute or rule from
60-15    which the order grants an exemption.
60-16          (g) [(f)]  A permit may satisfy a requirement to demonstrate
60-17    need by showing need on a regional basis considering economic
60-18    impacts.
60-19          (h) [(g)]  This section does not authorize exemptions to
60-20    statutes or regulations for storing, handling, processing, or
60-21    disposing of low-level radioactive materials.
60-22          (i) [(h)]  In implementing the program of regulatory
60-23    flexibility authorized by this section, the commission shall:
60-24                (1)  market the program to businesses in the state
60-25    through all available appropriate media;
60-26                (2)  endorse alternative methods that will clearly
60-27    benefit the environment and impose the least onerous restrictions
 61-1    on business;
 61-2                (3)  fix and enforce environmental standards, allowing
 61-3    businesses flexibility in meeting the standards in a manner that
 61-4    clearly enhances environmental outcomes; and
 61-5                (4)  work to achieve consistent and predictable results
 61-6    for the regulated community and shorter waits for permit issuance.
 61-7          SECTION 4.03. Section 7.067(a), Water Code, is amended to
 61-8    read as follows:
 61-9          (a)  The commission may compromise, modify, or remit, with or
61-10    without conditions, an administrative penalty imposed under this
61-11    subchapter.  In determining the appropriate amount of a penalty for
61-12    settlement of an administrative enforcement matter, the commission
61-13    may consider a respondent's willingness to contribute to
61-14    supplemental environmental projects that are approved by the
61-15    commission, giving preference to projects that benefit the
61-16    community in which the alleged violation occurred.  The commission
61-17    may approve a supplemental environmental project with activities in
61-18    territory of the United Mexican States if the project substantially
61-19    benefits territory in this state in a manner described by
61-20    Subsection (b).  The commission may not approve a project that is
61-21    necessary to bring a respondent into compliance with environmental
61-22    laws, [or] that is necessary to remediate environmental harm caused
61-23    by the respondent's alleged violation, or that the respondent has
61-24    already agreed to perform under a preexisting agreement with a
61-25    governmental agency.
61-26          SECTION 4.04. Section 361.0215, Health and Safety Code, is
61-27    amended to read as follows:
 62-1          Sec. 361.0215.  POLLUTION PREVENTION [WASTE REDUCTION]
 62-2    ADVISORY COMMITTEE. (a)  The pollution prevention [waste reduction]
 62-3    advisory committee is composed of nine members with a balanced
 62-4    representation of environmental and public interest groups and the
 62-5    regulated community.
 62-6          (b)  The committee shall advise the commission and
 62-7    interagency coordination council on:
 62-8                (1)  the appropriate organization of state agencies and
 62-9    the financial and technical resources required to aid the state in
62-10    its efforts to promote waste reduction and minimization;
62-11                (2)  the development of public awareness programs to
62-12    educate citizens about hazardous waste and the appropriate disposal
62-13    of hazardous waste and hazardous materials that are used and
62-14    collected by households;
62-15                (3)  the provision of technical assistance to local
62-16    governments for the development of waste management strategies
62-17    designed to assist small quantity generators of hazardous waste;
62-18    and
62-19                (4)  other possible programs to more effectively
62-20    implement the state's hierarchy of preferred waste management
62-21    technologies as set forth in Section 361.023(a).
62-22          (c)  The committee shall advise the commission on the
62-23    creation and implementation of an incentive- and performance-based
62-24    structure for the regulation of air and water quality and solid
62-25    waste management as set out in Section 5.752, Water Code.
62-26          (d)  The committee shall report quarterly to the commission
62-27    on its activities, including suggestions or proposals for future
 63-1    activities and other matters the committee considers important.
 63-2          SECTION 4.05. Section 361.088, Health and Safety Code, is
 63-3    amended by adding Subsection (g) to read as follows:
 63-4          (g)  The commission shall review a permit issued under this
 63-5    chapter every five to seven years to assess the license holder's
 63-6    compliance history.
 63-7          SECTION 4.06. Subchapter B, Chapter 382, Health and Safety
 63-8    Code, is amended by adding Sections 382.0215 and 382.0216 to read
 63-9    as follows:
63-10          Sec. 382.0215.  ASSESSMENT OF EMISSIONS DUE TO EMISSIONS
63-11    EVENTS. (a)  In this section, "emissions event" includes an upset,
63-12    maintenance, startup, or shutdown activity that results in the
63-13    unauthorized emissions of air contaminants.
63-14          (b)  The commission shall require the owner or operator of a
63-15    facility that experiences an emissions event to report to the
63-16    commission all information necessary to evaluate the emissions
63-17    event,  including:
63-18                (1)  the name of the owner or operator of the reporting
63-19    facility;
63-20                (2)  the location of the reporting facility;
63-21                (3)  the date and time the emissions began;
63-22                (4)  the duration of the emissions;
63-23                (5)  the nature and volume of air contaminants emitted,
63-24    including the method of calculation of, or other basis for
63-25    determining, the volume of air contaminants emitted;
63-26                (6)  the cause of the emissions; and
63-27                (7)  any additional information necessary to evaluate
 64-1    the emissions event.
 64-2          (c)  The commission shall centrally track emissions events
 64-3    and collect information relating to:
 64-4                (1)  inspections or enforcement actions taken by the
 64-5    commission in response to emissions events; and
 64-6                (2)  the number of emissions events occurring in each
 64-7    commission region.
 64-8          (d)  The commission annually shall assess the information
 64-9    received under this section, including actions taken by the
64-10    commission in response to the emissions events, and shall include
64-11    the assessment in the report required by Section 5.123, Water Code,
64-12    as added by Chapters 304 and 1082, Acts of the 75th Legislature,
64-13    Regular Session, 1997.
64-14          Sec. 382.0216.  REGULATION OF EMISSIONS EVENTS. (a)  The
64-15    commission shall establish criteria for determining when emissions
64-16    events are excessive.  The criteria must include consideration of:
64-17                (1)  the frequency of the facility's emissions events;
64-18                (2)  the cause of the emissions event;
64-19                (3)  the volume and toxicity of the emissions event;
64-20                (4)  the duration of the emissions event;
64-21                (5)  the percentage of a facility's total annual
64-22    operating hours during which emissions events occur; and
64-23                (6)  the need for startup and shutdown activities.
64-24          (b)  The executive director may require a facility to take
64-25    action to reduce emissions from excessive emissions events.
64-26    Consistent with commission rules, a facility required to take
64-27    action under this subsection must either file a corrective action
 65-1    plan to reduce emissions from emissions events or apply for a
 65-2    permit from the commission.
 65-3          (c)  A corrective action plan filed under Subsection (b) must
 65-4    identify the cause or causes of each emissions event, specify the
 65-5    control devices or other measures that will prevent or minimize
 65-6    similar emissions events in the future, and specify a time within
 65-7    which the corrective action plan will be implemented.  A corrective
 65-8    action plan must be approved by the commission.  An approved
 65-9    corrective action plan shall be made available to the public.  The
65-10    commission shall establish reasonable schedules for the
65-11    implementation of corrective action plans and procedures for
65-12    revision of a corrective action plan if the commission finds the
65-13    plan, after implementation begins, to be inadequate to meet the
65-14    goal of preventing or minimizing emissions and emissions events.
65-15          (d)  The commission by rule may establish an affirmative
65-16    defense to a commission enforcement action if the emissions event
65-17    meets criteria defined by commission rule.  In establishing rules
65-18    under this subsection, the commission at a minimum must require
65-19    consideration of the factors listed in Subsections (a)(1)-(6).
65-20          (e)  The burden of proof in any claim of a defense to
65-21    commission enforcement action under this section is on the person
65-22    claiming the defense.  This section does not limit the commission's
65-23    authority to take enforcement action or the authority or right of
65-24    any person to seek injunctive relief in relation to any emissions
65-25    event.
65-26          (f)  A person may not claim a defense to a commission
65-27    enforcement action under Subsection (d) if the person failed to
 66-1    take corrective action under a corrective action plan approved by
 66-2    the commission within the time prescribed by the commission and an
 66-3    emissions event recurs.
 66-4      ARTICLE 5.  ACCREDITATION OF ENVIRONMENTAL TESTING LABORATORIES
 66-5          SECTION 5.01. Chapter 421, Health and Safety Code, as added
 66-6    by Chapter 447, Acts of the 76th Legislature, Regular Session,
 66-7    1999, is transferred to Chapter 5, Water Code, redesignated as
 66-8    Subchapter R, and amended to read as follows:
 66-9               SUBCHAPTER R [CHAPTER 421].  ACCREDITATION OF
66-10                    ENVIRONMENTAL TESTING LABORATORIES
66-11          Sec. 5.801 [421.001].  DEFINITION [DEFINITIONS]. In this
66-12    subchapter, "environmental [chapter:]
66-13                [(1)  "Board" means the Texas Board of Health.]
66-14                [(2)  "Department" means the Texas Department of
66-15    Health.]
66-16                [(3)  "Environmental] testing laboratory" means a
66-17    scientific laboratory that[:]
66-18                      [(A)]  performs analyses to determine the
66-19    chemical, molecular, or pathogenic components of environmental
66-20    media [drinking water, wastewater, hazardous wastes, soil, or air]
66-21    for regulatory compliance purposes[; and]
66-22                      [(B)  is either a commercial laboratory or an
66-23    environmental laboratory that is required to be accredited under
66-24    federal law].
66-25          Sec. 5.802 [421.002].  ADMINISTRATION BY COMMISSION
66-26    [DEPARTMENT]. The commission [department] shall adopt rules for the
66-27    administration of [administer] the voluntary environmental testing
 67-1    laboratory accreditation program established by this chapter.  The
 67-2    program must be consistent with national accreditation standards
 67-3    approved by the National Environmental Laboratory Accreditation
 67-4    Conference.
 67-5          Sec. 5.803 [421.003].  APPLICATION; FEE. (a)  To be
 67-6    accredited under the accreditation program adopted under this
 67-7    subchapter [chapter], an environmental testing laboratory must
 67-8    submit an application to the commission [department] on a form
 67-9    prescribed by the commission [department], accompanied by the
67-10    accreditation fee. The application must contain the information
67-11    that the commission [department] requires.
67-12          (b)  The commission by rule  [board] shall establish a
67-13    schedule of reasonable [an] accreditation fees designed to recover
67-14    the costs of the accreditation program, including the costs
67-15    associated with:
67-16                (1)  application review;
67-17                (2)  initial, routine, and follow-up inspections by the
67-18    commission; and
67-19                (3)  preparation of reports [fee in an amount
67-20    sufficient to defray the cost of administering this chapter].
67-21          Sec. 5.804 [421.004].  ISSUANCE OF ACCREDITATION;
67-22    RECIPROCITY. (a)  The commission [department] may accredit an
67-23    environmental testing laboratory that complies with the commission
67-24    requirements established under this subchapter [chapter].
67-25          (b)  The commission [board] by rule may provide for the
67-26    accreditation of an environmental testing laboratory that is
67-27    accredited or licensed in [by] another state by an authority that
 68-1    is approved by the National Environmental Laboratory Accreditation
 68-2    Conference.
 68-3          Sec. 5.805 [421.005].  RULES; MINIMUM STANDARDS. The
 68-4    commission [board] shall adopt rules to implement this subchapter
 68-5    [chapter] and minimum performance and quality assurance standards
 68-6    for accreditation of an environmental testing laboratory.
 68-7          Sec. 5.806 [421.006].  DISCIPLINE. After notice and an
 68-8    opportunity for hearing, the commission [department] may suspend or
 68-9    revoke the accreditation of an environmental testing laboratory
68-10    that does not comply with the minimum performance and quality
68-11    assurance standards established under this subchapter [chapter].
68-12          Sec. 5.807.  ENVIRONMENTAL TESTING LABORATORY ACCREDITATION
68-13    ACCOUNT. (a)  All fees collected under this subchapter shall be
68-14    deposited to the credit of the environmental testing laboratory
68-15    accreditation account and may be appropriated to the commission
68-16    only for paying the costs of the accreditation program.
68-17          (b)  Any balance in the account in excess of $1,000 at the
68-18    end of a fiscal year reverts to the general revenue fund.
68-19         ARTICLE 6.  CERTIFICATION OF WATER TREATMENT SPECIALISTS
68-20          SECTION 6.01. Section 3A, The Plumbing License Law (Article
68-21    6243-101, Vernon's Texas Civil Statutes), is transferred to Chapter
68-22    341, Health and Safety Code, redesignated as Subchapter G, Chapter
68-23    341, and amended to read as follows:
68-24        SUBCHAPTER G.  CERTIFICATION OF WATER TREATMENT SPECIALISTS
68-25          Sec. 341.101 [Sec. 3A.  CERTIFICATION RELATING TO RESIDENTIAL
68-26    WATER TREATMENT FACILITIES].  DEFINITIONS. In this subchapter:
68-27                (1)  "Commission" means the Texas Natural Resource
 69-1    Conservation Commission.
 69-2                (2)  "Installation of water treatment appliances"
 69-3    includes connecting the appliances to all necessary utility
 69-4    connections in residential, commercial, or industrial facilities.
 69-5                (3)  "Water treatment" means a business conducted under
 69-6    contract that requires experience in the analysis of water,
 69-7    including the ability to determine how to treat influent and
 69-8    effluent water, to alter or purify water, and to add or remove a
 69-9    mineral, chemical, or bacterial content or substance.  The term
69-10    also includes the installation and service of potable water
69-11    treatment equipment in public or private water systems and making
69-12    connections necessary to complete installation of a water treatment
69-13    system.
69-14                (4)  "Water treatment equipment" includes appliances
69-15    used to alter or purify water or to alter a mineral, chemical, or
69-16    bacterial content or substance.
69-17          Sec. 341.102.  WATER TREATMENT SPECIALIST CERTIFICATION
69-18    PROGRAM. (a)  The commission by rule [Commissioner of Health or his
69-19    designee] shall establish a program to certify persons [as being]
69-20    qualified to install, exchange, service [for the installation,
69-21    exchange, servicing], and repair [of] residential, commercial, or
69-22    industrial water treatment equipment and appliances [facilities as
69-23    defined by Subsection (g) of Section 2 of this Act].
69-24          (b)  The rules must establish:
69-25                (1)  [Texas Board of Health shall set] standards for
69-26    certification to ensure the public health and to protect the public
69-27    from unqualified persons engaging in activities relating to water
 70-1    treatment;
 70-2                (2)  classes of certification;
 70-3                (3)  duration of certification; and
 70-4                (4)  reasonable annual certification fees in an amount
 70-5    sufficient to pay the administrative costs of the certification
 70-6    program, but not to exceed $150 a year for any class of
 70-7    certification.
 70-8          Sec. 341.103.  CERTIFICATION REQUIRED. A person may not
 70-9    engage in water treatment unless the person first obtains a
70-10    certificate from the commission under the program established under
70-11    this subchapter.
70-12          Sec. 341.104.  APPLICATION FOR CERTIFICATION. A person
70-13    desiring to obtain certification under the program established
70-14    under this subchapter shall file with the commission:
70-15                (1)  an application in the form prescribed by the
70-16    commission and containing the information required by the
70-17    commission; and
70-18                (2)  the appropriate certification fee.
70-19          Sec. 341.105.  ISSUANCE OF CERTIFICATE. (a)  [Nothing in this
70-20    section shall be construed to require that persons licensed
70-21    pursuant to this Act are subject to certification under this
70-22    section.]
70-23          [(b)  Before a certificate is issued or renewed under this
70-24    section, an applicant or holder of a certificate shall be required
70-25    to pay a fee of $10 a year.]  On receipt of an application that
70-26    meets commission requirements and the required fee, the commission
70-27    [Texas Department of Health] shall issue to a [qualified] person
 71-1    who meets commission standards for certification a certificate
 71-2    stating that the person is qualified to install, exchange, service
 71-3    [for the installation, exchange, servicing], and repair [of]
 71-4    residential, commercial, or industrial water treatment facilities.
 71-5          (b)  [The Texas Board of Health shall adopt rules
 71-6    establishing classes of certificates, duration of certificates, and
 71-7    fees.]
 71-8          [(c)]  All fees received by the commission [Texas Department
 71-9    of Health] under this section shall be deposited in the State
71-10    Treasury to the credit of the General Revenue Fund.
71-11            ARTICLE 7.  REGISTRATION OF IRRIGATORS AND ON-SITE
71-12                     SEWAGE DISPOSAL SYSTEM INSTALLERS
71-13          SECTION 7.01. Section 34.008(a), Water Code, is amended to
71-14    read as follows:
71-15          (a)  The commission may waive any prerequisite [certify] for
71-16    obtaining registration for [without examination] an applicant who
71-17    is registered as a licensed irrigator or licensed installer by [in]
71-18    another jurisdiction with which this state has a reciprocity
71-19    agreement.  The commission may make an agreement, subject to the
71-20    approval of the governor, with another state to allow for
71-21    registration by reciprocity [state or country that has requirements
71-22    for registration that are at least substantially equivalent to the
71-23    requirements of this state and that extends the same privilege of
71-24    reciprocity to licensed irrigators or licensed installers
71-25    registered in this state].
71-26          SECTION 7.02. Section 34.009(f), Water Code, is amended to
71-27    read as follows:
 72-1          (f)  The commission by rule may adopt a system under which
 72-2    certificates of registration expire on various dates during the
 72-3    year.  For the year in which the expiration date is changed, the
 72-4    commission shall prorate registration [renewal] fees [payable on
 72-5    August 31 shall be prorated] on a monthly basis so that each
 72-6    registrant pays [will pay] only that portion of the registration
 72-7    fee that is allocable to the number of months during which the
 72-8    registration is valid.  On renewal of the registration on the new
 72-9    expiration date, the total registration renewal fee is due.
72-10          SECTION 7.03. Section 366.076, Health and Safety Code, is
72-11    amended to read as follows:
72-12          Sec. 366.076.  REGISTRATION RENEWAL. The commission by rule
72-13    may adopt a system under which registrations expire on various
72-14    dates during the year.  For each year in which the registration
72-15    expiration date is changed, the commission shall prorate
72-16    registration fees on a monthly basis so that each registrant pays
72-17    only that portion of the registration fee that is allocable to the
72-18    number of months during which the registration is valid.  On
72-19    renewal of the registration on the new expiration date, the total
72-20    registration renewal fee is payable [provide for periodic renewal
72-21    of registrations].
72-22               ARTICLE 8.  REGULATION OF CERTAIN SOLID WASTE
72-23                                FACILITIES
72-24          SECTION 8.01. Subchapter C, Chapter 361, Health and Safety
72-25    Code, is amended by adding Section 361.119 to read as follows:
72-26          Sec. 361.119.  REGULATION OF CERTAIN FACILITIES AS SOLID
72-27    WASTE FACILITIES. (a)  The commission by rule shall ensure that a
 73-1    solid waste processing facility the primary function of which is
 73-2    the transfer of solid waste is regulated as a solid waste facility
 73-3    under this chapter and is not allowed to operate unregulated as a
 73-4    recycling facility.
 73-5          (b)  A facility and the operations conducted and materials
 73-6    handled at the facility are not subject to regulation under rules
 73-7    adopted under this section if the owner or operator of the facility
 73-8    demonstrates that:
 73-9                (1)  the primary function of the facility is to process
73-10    materials that have a resale value greater than the cost of
73-11    processing the materials for subsequent beneficial use; and
73-12                (2)  the solid waste generated from processing the
73-13    materials is disposed of in a solid waste facility authorized under
73-14    this chapter, with the exception of small amounts of solid waste,
73-15    as specified by commission rule, that may be inadvertently and
73-16    unintentionally disposed of in another manner.
73-17                     ARTICLE 9.  CONFORMING AMENDMENTS
73-18          SECTION 9.01. Section 5.174(a), Water Code, is amended to
73-19    read as follows:
73-20          (a)  Except as otherwise specifically provided by this code
73-21    and subject to the specific limitations provided by this code, on
73-22    application of any person the commission shall furnish certified or
73-23    other copies of any proceeding or other official record or of any
73-24    map, paper, or document filed with the commission.  A certified
73-25    copy with the seal of the commission and the signature of the
73-26    presiding officer [chairman] of the commission or the executive
73-27    director or chief clerk is admissible as evidence in any court or
 74-1    administrative proceeding.
 74-2          SECTION 9.02. Section 11.085, Water Code, as it exists after
 74-3    the transfer and redesignation of Subsections (f)-(i) by this Act,
 74-4    is amended by amending Subsection (d) and relettering Subsections
 74-5    (j)-(v) as Subsections (f)-(r) to read as follows:
 74-6          (d)  Prior to taking action on an application for an
 74-7    interbasin transfer, the commission shall conduct at least one
 74-8    public meeting to receive comments in both the basin of origin of
 74-9    the water proposed for transfer and the basin receiving water from
74-10    the proposed transfer.  Notice shall be provided pursuant to
74-11    Section 5.652 [Subsection (g) of this section].  Any person may
74-12    present relevant information and data at the meeting on the
74-13    criteria which the commission is to consider related to the
74-14    interbasin transfer.
74-15          (f) [(j)]  In addition to other requirements of this code
74-16    relating to the review of and action on an application for a new
74-17    water right or amended permit, certified filing, or certificate of
74-18    adjudication, the commission shall:
74-19                (1)  request review and comment on an application for
74-20    an interbasin transfer from each county judge of a county located
74-21    in whole or in part in the basin of origin.  A county judge should
74-22    make comment only after seeking advice from the county
74-23    commissioners court; and
74-24                (2)  give consideration to the comments of each county
74-25    judge of a county located in whole or in part in the basin of
74-26    origin prior to taking action on an application for an interbasin
74-27    transfer.
 75-1          (g) [(k)]  In addition to other requirements of this code
 75-2    relating to the review of and action on an application for a new
 75-3    water right or amended permit, certified filing, or certificate of
 75-4    adjudication, the commission shall weigh the effects of the
 75-5    proposed transfer by considering:
 75-6                (1)  the need for the water in the basin of origin and
 75-7    in the proposed receiving basin based on the period for which the
 75-8    water supply is requested, but not to exceed 50 years;
 75-9                (2)  factors identified in the applicable approved
75-10    regional water plans which address the following:
75-11                      (A)  the availability of feasible and practicable
75-12    alternative supplies in the receiving basin to the water proposed
75-13    for transfer;
75-14                      (B)  the amount and purposes of use in the
75-15    receiving basin for which water is needed;
75-16                      (C)  proposed methods and efforts by the
75-17    receiving basin to avoid waste and implement water conservation and
75-18    drought contingency measures;
75-19                      (D)  proposed methods and efforts by the
75-20    receiving basin to put the water proposed for transfer to
75-21    beneficial use;
75-22                      (E)  the projected economic impact that is
75-23    reasonably expected to occur in each basin as a result of the
75-24    transfer; and
75-25                      (F)  the projected impacts of the proposed
75-26    transfer that are reasonably expected to occur on existing water
75-27    rights, instream uses, water quality, aquatic and riparian habitat,
 76-1    and bays and estuaries that must be assessed under Sections 11.147,
 76-2    11.150, and 11.152 of this code in each basin.  If the water sought
 76-3    to be transferred is currently authorized to be used under an
 76-4    existing permit, certified filing, or certificate of adjudication,
 76-5    such impacts shall only be considered in relation to that portion
 76-6    of the permit, certified filing, or certificate of adjudication
 76-7    proposed for transfer and shall be based on historical uses of the
 76-8    permit, certified filing, or certificate of adjudication for which
 76-9    amendment is sought;
76-10                (3)  proposed mitigation or compensation, if any, to
76-11    the basin of origin by the applicant;
76-12                (4)  the continued need to use the water for the
76-13    purposes authorized under the existing permit, certified filing, or
76-14    certificate of adjudication, if an amendment to an existing water
76-15    right is sought; and
76-16                (5)  the information required to be submitted by the
76-17    applicant.
76-18          (h) [(l)]  The commission may grant, in whole or in part, an
76-19    application for an interbasin transfer only to the extent that:
76-20                (1)  the detriments to the basin of origin during the
76-21    proposed transfer period are less than the benefits to the
76-22    receiving basin during the proposed transfer period; and
76-23                (2)  the applicant for the interbasin transfer has
76-24    prepared a drought contingency plan and has developed and
76-25    implemented a water conservation plan that will result in the
76-26    highest practicable levels of water conservation and efficiency
76-27    achievable within the jurisdiction of the applicant.
 77-1          (i) [(m)]  The commission may grant new or amended water
 77-2    rights under this section with or without specific terms or periods
 77-3    of use and with specific conditions under which a transfer of water
 77-4    may occur.
 77-5          (j) [(n)]  If the transfer of water is based on a contractual
 77-6    sale of water, the new water right or amended permit, certified
 77-7    filing, or certificate of adjudication authorizing the transfer
 77-8    shall contain a condition for a term or period not greater than the
 77-9    contract term.
77-10          (k) [(o)]  The parties to a contract for an interbasin
77-11    transfer may include provisions for compensation and mitigation.
77-12    If the party from the basin of origin is a government entity, each
77-13    county judge of a county located in whole or in part in the basin
77-14    of origin may provide input on the appropriate compensation and
77-15    mitigation for the interbasin transfer.
77-16          (l) [(p)]  For the purposes of this section, a basin is
77-17    designated as provided in accordance with Section 16.051 of this
77-18    code.  A basin may not be redesignated in order to allow a transfer
77-19    or diversion of water otherwise in violation of this section.
77-20          (m) [(q)]  A person who takes or diverts water in violation
77-21    of this section is guilty of a misdemeanor and upon conviction is
77-22    punishable by a fine of not more than $1,000 or by confinement in
77-23    the county jail for not more than six months.
77-24          (n) [(r)]  A person commits a separate offense each day he
77-25    continues to take or divert water in violation of this section.
77-26          (o) [(s)]  Any proposed transfer of all or a portion of a
77-27    water right under this section is junior in priority to water
 78-1    rights granted before the time application for transfer is accepted
 78-2    for filing.
 78-3          (p) [(t)]  Any proposed transfer of all or a portion of a
 78-4    water right under this section from a river basin in which two or
 78-5    more river authorities or water districts created under Section 59,
 78-6    Article XVI, Texas Constitution, have written agreements or permits
 78-7    that provide for the coordinated operation of their respective
 78-8    reservoirs to maximize the amount of water for beneficial use
 78-9    within their respective water services areas shall be junior in
78-10    priority to water rights granted before the time application for
78-11    transfer is accepted for filing.
78-12          (q) [(u)]  An appropriator of water for municipal purposes in
78-13    the basin of origin may, at the appropriator's option, be a party
78-14    in any hearings under this section.
78-15          (r) [(v)]  The provisions of this section, except Subsection
78-16    (a), do not apply to:
78-17                (1)  a proposed transfer which in combination with any
78-18    existing transfers totals less than 3,000 acre-feet of water per
78-19    annum from the same permit, certified filing, or certificate of
78-20    adjudication;
78-21                (2)  a request for an emergency transfer of water;
78-22                (3)  a proposed transfer from a basin to its adjoining
78-23    coastal basin; or
78-24                (4)  a proposed transfer from a basin to a county or
78-25    municipality or the municipality's retail service area that is
78-26    partially within the basin for use in that part of the county or
78-27    municipality and the municipality's retail service area not within
 79-1    the basin.
 79-2          SECTION 9.03. Section 11.132, Water Code, as it exists after
 79-3    the transfer and redesignation of Subsections (a)-(c) by this Act,
 79-4    is amended by adding new Subsections (a) and (b), relettering
 79-5    existing Subsection (f) as Subsection (c), and amending existing
 79-6    Subsection (f) to read as follows:
 79-7          (a)  Notice shall be given of an application for
 79-8    authorization to appropriate unappropriated state water as
 79-9    prescribed by Section 5.653.  The commission, on the motion of a
79-10    commissioner or on the request of the executive director or any
79-11    affected person, shall hold a public hearing on the application.
79-12          (b)  The commission may act on the application without
79-13    holding a public hearing if notice has been given as provided by
79-14    Section 5.654 and, within 30 days after the date notice is
79-15    published under Section 5.654(a), a public hearing has not been
79-16    requested in writing by a commissioner, the executive director, or
79-17    an affected person who objects to the application.
79-18          (c) [(f)]  If, on the date specified in the notice prescribed
79-19    by Section 5.653(c) [Subsection (c) of this section], the
79-20    commission determines that a public hearing must be held, the
79-21    matter shall be remanded for hearing without the necessity of
79-22    issuing further notice other than advising all parties of the time
79-23    and place where the hearing is to convene.
79-24          SECTION 9.04. Section 11.139(g), Water Code, is amended to
79-25    read as follows:
79-26          (g)  The requirements of Sections 5.653 and 5.654 [Section
79-27    11.132 of this code] relating to the time for notice, newspaper
 80-1    notice, and method of giving a person notice do not apply to a
 80-2    hearing held on an application for an emergency authorization under
 80-3    this section, but such general notice of the hearing shall be given
 80-4    as the commission, under Subsections (c) and (e) [of this section],
 80-5    considers practicable under the circumstances.
 80-6          SECTION 9.05. Section 11.143, Water Code, as it exists after
 80-7    the transfer and redesignation of Subsections (d)-(f) by this Act,
 80-8    is amended by adding a new Subsection (d), relettering existing
 80-9    Subsections (g)-(i) as Subsections (e)-(g), and amending existing
80-10    Subsection (g) to read as follows:
80-11          (d)  Except as otherwise specifically provided by this
80-12    subsection, before the commission may approve an application and
80-13    issue a  permit to use water from a dam or reservoir exempted under
80-14    Section 11.142 for a purpose other than domestic or livestock use,
80-15    it shall give notice as prescribed by Section 5.655 and hold a
80-16    hearing as prescribed by this section.  The commission may act on
80-17    the application without holding a public hearing if the applicant
80-18    publishes the commission's notice as required by Section 5.656.
80-19          (e) [(g)]  If on the date specified in the notice prescribed
80-20    by Section 5.656 [Subsection (d) of this section,] the commission
80-21    determines that a public hearing must be held, the matter shall be
80-22    remanded for hearing without the necessity of issuing further
80-23    notice other than advising all parties of the time and place where
80-24    the hearing is to convene.
80-25          (f) [(h)]  The applicant shall pay the filing fee prescribed
80-26    by Section 12.111(b) of this code at the time he files the
80-27    application.
 81-1          (g) [(i)]  The commission shall approve the application and
 81-2    issue the permit as applied for in whole or part if it determines
 81-3    that:
 81-4                (1)  there is unappropriated water in the source of
 81-5    supply;
 81-6                (2)  the applicant has met the requirements of this
 81-7    section;
 81-8                (3)  the water is to be used for a beneficial purpose;
 81-9                (4)  the proposed use is not detrimental to the public
81-10    welfare or to the welfare of the locality; and
81-11                (5)  the proposed use will not impair existing water
81-12    rights.
81-13          SECTION 9.06. Section 11.323(a), Water Code, is amended to
81-14    read as follows:
81-15          (a)  When a final determination of the rights to the waters
81-16    of a stream has been made in accordance with the procedure provided
81-17    in this subchapter and the time for a rehearing has expired, the
81-18    commission shall issue to each person adjudicated a water right a
81-19    certificate of adjudication, signed by the presiding officer of the
81-20    commission [chairman] and bearing the seal of the commission.
81-21          SECTION 9.07. Section 26.022, Water Code, as it exists after
81-22    the transfer and redesignation of Subsections (b) and (c) by this
81-23    Act, is amended by amending Subsection (a), relettering existing
81-24    Subsections (d) and (e) as Subsections (b) and (c), and amending
81-25    existing Subsections (d) and (e) to read as follows:
81-26          (a)  Except as otherwise provided in Sections 5.501, 5.504,
81-27    5.509, and 26.176, the provisions of this section and of Section
 82-1    5.658 apply to all hearings conducted in compliance with this
 82-2    chapter.
 82-3          (b) [(d)]  The individual or individuals holding the hearing,
 82-4    called the hearing body, shall conduct the hearing at the time and
 82-5    place stated in the notice given under Section 5.655.  The hearing
 82-6    body may continue the hearing from time to time and from place to
 82-7    place without the necessity of publishing, serving, mailing, or
 82-8    otherwise issuing a new notice.
 82-9          (c) [(e)]  If a hearing is continued and a time and place for
82-10    the hearing to reconvene are not publicly announced by the person
82-11    conducting the hearing at the hearing before it is recessed, a
82-12    notice of any further setting of the hearing shall be served
82-13    personally or mailed in the manner prescribed by Section 5.658(b)
82-14    [in Subsection (c) of this section] at a reasonable time before the
82-15    new setting, but it is not necessary to publish a newspaper notice
82-16    of the new setting.
82-17          SECTION 9.08. Section 26.028, Water Code, as it exists after
82-18    the transfer and redesignation of Subsections (a), (b), (e), and
82-19    (g) by this Act, is amended by adding a new Subsection (a),
82-20    relettering existing Subsections (c) and (d) as Subsections (b) and
82-21    (c), amending existing Subsection (d), adding a new Subsection (d),
82-22    relettering existing Subsection (f) as Subsection (e), and adding a
82-23    new Subsection (f) to read as follows:
82-24          (a)  Notice of an application for and a hearing on an
82-25    application for a permit, permit amendment, or permit renewal shall
82-26    be given as required by Section 5.659.
82-27          (b) [(c)]  Except as otherwise provided by this section, the
 83-1    commission, on the motion of a commissioner, or on the request of
 83-2    the executive director or any affected person, shall hold a public
 83-3    hearing on the application for a permit, permit amendment, or
 83-4    renewal of a permit.
 83-5          (c) [(d)]  Notwithstanding any other provision of this
 83-6    chapter, the commission, at a regular meeting without the necessity
 83-7    of holding a public hearing, may approve an application to renew or
 83-8    amend a permit if:
 83-9                (1)  the applicant is not applying to:
83-10                      (A)  increase significantly the quantity of waste
83-11    authorized to be discharged; or
83-12                      (B)  change materially the pattern or place of
83-13    discharge;
83-14                (2)  the activities to be authorized by the renewed or
83-15    amended permit will maintain or improve the quality of waste
83-16    authorized to be discharged;
83-17                (3)  for NPDES permits, notice and the opportunity to
83-18    request a public meeting shall be given in compliance with NPDES
83-19    program requirements, and the commission shall consider and respond
83-20    to all timely received and significant public comment; and
83-21                (4)  the commission determines that an applicant's
83-22    compliance history during [for] the period established  by the
83-23    commission under Section 5.754 for consideration of compliance
83-24    history [preceding five years] raises no issues regarding the
83-25    applicant's ability to comply with a material term of its permit.
83-26          (d)  Notice of an application under Subsection (c) shall be
83-27    given as provided by Section 5.659(c) and the persons notified
 84-1    under that section may present information to the commission on the
 84-2    application.
 84-3          (e) [(f)]  An application to renew a permit for a confined
 84-4    animal feeding operation which was issued between July 1, 1974, and
 84-5    December 31, 1977, may be set for consideration and may be acted on
 84-6    by the commission at a regular meeting without the necessity of
 84-7    holding a public hearing if the applicant does not seek to
 84-8    discharge into or adjacent to water in the state and does not seek
 84-9    to change materially the pattern or place of disposal.
84-10          (f)  For the purposes of Subsection (a), the commission may
84-11    act on an application without holding a public hearing if notice is
84-12    given as provided by Section 5.660 and, within 30 days after the
84-13    date of the publication of notice under Section 5.660(a), neither a
84-14    commissioner, the executive director, nor an affected person who
84-15    objects to the application has requested a public hearing.
84-16          SECTION 9.09. Section 26.0281, Water Code, is amended to read
84-17    as follows:
84-18          Sec. 26.0281.  CONSIDERATION OF [PAST PERFORMANCE AND]
84-19    COMPLIANCE HISTORY. In considering the issuance, amendment, or
84-20    renewal of a permit to discharge effluent comprised primarily of
84-21    sewage or municipal waste, the commission shall consider the [any
84-22    adjudicated decision on or] compliance history [proceeding
84-23    addressing past performance and compliance] of the applicant and
84-24    its operator under the method for evaluating compliance history
84-25    developed by the commission under Section 5.754 [with the laws of
84-26    this state governing waste discharge, waste treatment, or waste
84-27    disposal facilities and with the terms of any permit or order
 85-1    issued by the commission].
 85-2          SECTION 9.10. Section 26.040, Water Code, as it exists after
 85-3    the transfer and redesignation of Subsection (b) by this Act, is
 85-4    amended by relettering Subsections (c)-(m) as Subsections (b)-(l)
 85-5    and amending existing Subsections (h) and (i) to read as follows:
 85-6          (b) [(c)]  The commission may hold a public meeting to
 85-7    provide an additional opportunity for public comment.  The
 85-8    commission shall give notice of a public meeting under this
 85-9    subsection by publication in the Texas Register not later than the
85-10    30th day before the date of the meeting.
85-11          (c) [(d)]  If the commission receives public comment relating
85-12    to issuance of a general permit, the commission may issue the
85-13    general permit only after responding in writing to the comments.
85-14    The commission shall issue a written response to comments on the
85-15    permit at the same time the commission issues or denies the permit.
85-16    The response is available to the public and shall be mailed to each
85-17    person who made a comment.
85-18          (d) [(e)]  A general permit may provide that a discharger who
85-19    is not covered by an individual permit may obtain authorization to
85-20    discharge waste under a general permit by submitting to the
85-21    commission written notice of intent to be covered by the general
85-22    permit.  A general permit shall specify the deadline for submitting
85-23    and the information required to be included in a notice of intent.
85-24    A general permit may authorize a discharger to begin discharging
85-25    under the general permit immediately on filing a complete and
85-26    accurate notice of intent, or it may specify a date or period of
85-27    time after the commission receives the discharger's notice of
 86-1    intent on which the discharger may begin discharging unless the
 86-2    executive director before that time notifies the discharger that it
 86-3    is not eligible for authorization under the general permit.
 86-4          (e) [(f)]  A general permit may authorize a discharger to
 86-5    discharge without submitting a notice of intent if the commission
 86-6    finds that a notice of intent requirement would be inappropriate.
 86-7          (f) [(g)]  Authorization to discharge under a general permit
 86-8    does not confer a vested right.  After written notice to the
 86-9    discharger, the executive director may suspend a discharger's
86-10    authority to discharge under a general permit and may require a
86-11    person discharging under a general permit to obtain authorization
86-12    to discharge under an individual permit as required by Section
86-13    26.027 or other law.
86-14          (g) [(h)]  Notwithstanding other provisions of this chapter,
86-15    the commission, after hearing, shall deny or suspend a discharger's
86-16    authority to discharge under a general permit if the commission
86-17    determines that the [discharger operates any facility for which
86-18    the] discharger's compliance history  is unacceptable under the
86-19    method of evaluating compliance history   developed by the
86-20    commission under Section 5.754 during the period established by the
86-21    commission under that section for consideration of compliance
86-22    history [contains violations constituting a recurring pattern of
86-23    egregious conduct that demonstrates a consistent disregard for the
86-24    regulatory process, including a failure to make a timely and
86-25    substantial attempt to correct the violations].  A hearing under
86-26    this subsection is not subject to Chapter 2001, Government Code.
86-27          (h) [(i)]  A general permit may be issued for a term not to
 87-1    exceed five years.  After notice and comment as provided by Section
 87-2    5.661 and Subsections (b) and (c) [(b)-(d)], a general permit may
 87-3    be amended, revoked, or canceled by the commission or renewed by
 87-4    the commission for an additional term or terms not to exceed five
 87-5    years each.  A general permit remains in effect until amended,
 87-6    revoked, or canceled by the commission or, unless renewed by the
 87-7    commission, until expired.  If before a general permit expires the
 87-8    commission proposes to renew that general permit, that general
 87-9    permit remains in effect until the date on which the commission
87-10    takes final action on the proposed renewal.
87-11          (i) [(j)]  The commission may through a renewal or amendment
87-12    process for a general permit add or delete requirements or
87-13    limitations to the permit.  The commission shall provide a
87-14    reasonable time to allow a discharger covered by the general permit
87-15    to make the changes necessary to comply with the additional
87-16    requirements.
87-17          (j) [(k)]  The commission may impose a reasonable and
87-18    necessary fee under Section 26.0291 on a discharger covered by a
87-19    general permit.
87-20          (k) [(l)]  The issuance, amendment, renewal, suspension,
87-21    revocation, or cancellation of a general permit or of authority to
87-22    discharge under a general permit is not subject to Subchapters C-F,
87-23    Chapter 2001, Government Code.
87-24          (l) [(m)]  The commission may adopt rules as necessary to
87-25    implement and administer this section.
87-26          SECTION 9.11. Section 27.018, Water Code, as it exists after
87-27    the transfer and redesignation of Subsection (b) by this Act, is
 88-1    amended by adding a new Subsection (b) and amending Subsection (c)
 88-2    to read as follows:
 88-3          (b)  Notice of the opportunity to request a public hearing on
 88-4    a permit application shall be given as provided by Section 5.662.
 88-5          (c)  Before the commission begins to hear testimony in a
 88-6    contested case as defined by Chapter 2001, Government Code,
 88-7    evidence must be placed in the record to demonstrate that proper
 88-8    notice regarding the hearing was given to affected persons as
 88-9    required by commission rules adopted under Section 5.662.  If
88-10    mailed notice to an affected person is required, the commission or
88-11    other party to the hearing shall place evidence in the record that
88-12    notice was mailed to the address of the affected person included in
88-13    the appropriate county tax rolls at the time of mailing.  For the
88-14    purposes of this subsection, the affidavit of the commission
88-15    employee responsible for the mailing of the notice, attesting to
88-16    the fact that notice was mailed to the address included in the tax
88-17    rolls at the time of mailing, shall be prima facie evidence of
88-18    proper mailing.  The commission may not proceed with receipt of
88-19    testimony in a contested case until there is compliance with this
88-20    subsection.
88-21          SECTION 9.12. Sections 27.051(d) and (e), Water Code, are
88-22    amended to read as follows:
88-23          (d)  The commission, in determining if the use or
88-24    installation of an injection well for the disposal of hazardous
88-25    waste is in the public interest under Subsection (a)(1) [of this
88-26    section], shall consider, but shall not be limited to the
88-27    consideration of:
 89-1                (1)  compliance history of the applicant under the
 89-2    method for evaluating compliance history developed by the
 89-3    commission under Section 5.754 and in accordance with the
 89-4    provisions of Subsection (e) [of this section];
 89-5                (2)  whether there is a practical, economic, and
 89-6    feasible alternative to an injection well reasonably available to
 89-7    manage the types and classes of hazardous waste; and
 89-8                (3)  whether the applicant will maintain sufficient
 89-9    public liability insurance for bodily injury and property damage to
89-10    third parties that is caused by sudden and non-sudden accidents or
89-11    will otherwise demonstrate financial responsibility in a manner
89-12    adopted by the commission in lieu of public liability insurance.  A
89-13    liability insurance policy which satisfies the policy limits
89-14    required by the hazardous waste management regulations of the
89-15    commission for the applicant's proposed pre-injection facilities
89-16    shall be deemed "sufficient" under this subdivision if the policy:
89-17                      (A)  covers the injection well; and
89-18                      (B)  is issued by a company that is authorized to
89-19    do business and to write that kind of insurance in this state and
89-20    is solvent and not currently under supervision or in
89-21    conservatorship or receivership in this state or any other state.
89-22          (e)  The commission shall establish a procedure by rule for
89-23    its preparation of compliance summaries relating to the compliance
89-24    history of [compliance and noncompliance by] the applicant in
89-25    accordance with the method for evaluating compliance history
89-26    developed by the commission under Section 5.754 [with the rules
89-27    adopted or orders or permits issued by the commission under this
 90-1    chapter for any injection well for which a permit has been issued
 90-2    under this chapter].  The compliance summaries shall be made
 90-3    available to the applicant and any interested person after the
 90-4    commission has completed its technical review of the permit
 90-5    application and prior to the promulgation of the public notice
 90-6    relating to the issuance of the permit.  Evidence of compliance or
 90-7    noncompliance by an applicant for an injection well for the
 90-8    disposal of hazardous waste with the rules adopted or orders or
 90-9    permits issued by the commission under this chapter may be offered
90-10    by any party at a hearing on the applicant's application and
90-11    admitted into evidence subject to applicable rules of evidence.
90-12    All evidence admitted, including compliance history, shall be
90-13    considered by the commission in determining whether to issue,
90-14    amend, extend or renew a permit.
90-15          SECTION 9.13. Section 361.020(d), Health and Safety Code, is
90-16    amended to read as follows:
90-17          (d)  The commission in developing a comprehensive statewide
90-18    strategic plan shall:
90-19                (1)  consult with:
90-20                      (A)  the agency's waste minimization, recycling,
90-21    or reduction division;
90-22                      (B)  the municipal solid waste management and
90-23    resource recovery advisory council;
90-24                      (C)  the pollution prevention [waste reduction]
90-25    advisory committee;
90-26                      (D)  the interagency coordinating council; and
90-27                      (E)  local governments, appropriate regional and
 91-1    state agencies, businesses, citizen groups, and private waste
 91-2    management firms;
 91-3                (2)  hold public hearings in different regions of the
 91-4    state; and
 91-5                (3)  publish the proposed plan in the Texas Register.
 91-6          SECTION 9.14. Section 361.063, Health and Safety Code, as it
 91-7    exists after the transfer and redesignation of Subsection (c) by
 91-8    this Act, is amended by adding a new Subsection (c) to read as
 91-9    follows:
91-10          (c)  Filing notice with the commission as required by Section
91-11    5.663, Water Code, initiates the preapplication review process.
91-12          SECTION 9.15. Section 361.079, Health and Safety Code, is
91-13    amended by amending the heading to read as follows:
91-14          Sec. 361.079.  [NOTICE CONCERNING RECEIPT OF PERMIT
91-15    APPLICATION;] HEARING PROCEDURES.
91-16          SECTION 9.16. Section 361.079, Health and Safety Code, as it
91-17    exists after the transfer and redesignation of Subsections (a) and
91-18    (c) by this Act, is amended by adding a new Subsection (a) to read
91-19    as follows:
91-20          (a)  Notice for a hearing under Section 361.080 or 361.081 is
91-21    given as provided by Section 5.665, Water Code.  The commission by
91-22    rule shall establish procedures for a public hearing under Section
91-23    361.080 or 361.081.
91-24          SECTION 9.17. Section 361.0791, Health and Safety Code, as it
91-25    exists after the transfer and redesignation of Subsections (e),
91-26    (f), and (g) by this Act, is amended by adding a new Subsection (e)
91-27    to read as follows:
 92-1          (e)  If a meeting is required under Subsection (a), notice of
 92-2    the meeting shall be given as provided by Section 5.666, Water
 92-3    Code.
 92-4          SECTION 9.18. Section 361.080(b), Health and Safety Code, is
 92-5    amended to read as follows:
 92-6          (b)  Notice for a hearing session held under this section
 92-7    shall be provided in accordance with Section 5.666, Water Code
 92-8    [361.0791].
 92-9          SECTION 9.19. Section 361.081, Health and Safety Code, as it
92-10    exists after the transfer and redesignation of Subsections (a) and
92-11    (b) by this Act, is amended by amending the heading, adding a new
92-12    Subsection (a), and relettering and amending Subsection (c) to
92-13    read as follows:
92-14          Sec. 361.081.  [NOTICE OF] HEARING CONCERNING APPLICATION FOR
92-15    A SOLID WASTE FACILITY. (a)  The commission shall require the
92-16    applicant to provide notice of the hearing as provided by Section
92-17    5.667, Water Code.
92-18          (b) [(c)]  In addition to the requirements of Subsection (a),
92-19    the commission shall hold a public meeting and the applicant shall
92-20    give notice concerning the application for a permit for a new
92-21    hazardous waste management facility as provided by Section 5.666,
92-22    Water Code [361.0791].
92-23          SECTION 9.20. Section 361.082, Health and Safety Code, as it
92-24    exists after the transfer and redesignation of Subsection (c) by
92-25    this Act, is amended by adding a new Subsection (c) and amending
92-26    Subsection (d) to read as follows:
92-27          (c)  The commission by rule shall establish procedures for a
 93-1    public hearing on an application for a permit under this section.
 93-2    Notice of the hearing shall be given as provided by Section 5.668,
 93-3    Water Code.
 93-4          (d)  In addition to the hearing held under this section, the
 93-5    commission shall hold a public meeting and the applicant shall give
 93-6    notice as provided by Section 5.666, Water Code [361.0791].
 93-7          SECTION 9.21. Sections 361.084(a) and (c), Health and Safety
 93-8    Code, are amended to read as follows:
 93-9          (a)  The commission by rule shall establish a procedure to
93-10    prepare compliance summaries relating to the applicant's solid
93-11    waste management activities in accordance with the method for
93-12    evaluating compliance history developed by the commission under
93-13    Section 5.754, Water Code.
93-14          (c)  Evidence of compliance or noncompliance by an applicant
93-15    for a solid waste management facility permit with agency rules,
93-16    permits, other orders, or evidence of a final determination of
93-17    noncompliance with federal statutes or statutes of any state during
93-18    [in] the period adopted under Section 5.754, Water Code, for the
93-19    consideration of compliance history [preceding five years]
93-20    concerning solid waste management may be:
93-21                (1)  offered by a party at a hearing concerning the
93-22    application; and
93-23                (2)  admitted into evidence subject to applicable rules
93-24    of evidence.
93-25          SECTION 9.22. Sections 361.088(d) and (f), Health and Safety
93-26    Code, are amended to read as follows:
93-27          (d)  In addition to providing an opportunity for a hearing
 94-1    held under this section, the commission shall hold a public meeting
 94-2    and give notice as provided by Section 5.666, Water Code
 94-3    [361.0791].
 94-4          (f)  Notwithstanding Subsection (e), if the commission
 94-5    determines that an applicant's compliance history for the period
 94-6    adopted under Section 5.754, Water Code, for the consideration of
 94-7    compliance history [preceding five years] raises an issue regarding
 94-8    the applicant's ability to comply with a material term of its
 94-9    permit, the commission shall provide an opportunity to request a
94-10    contested case hearing.
94-11          SECTION 9.23. Section 361.089, Health and Safety Code, as it
94-12    exists after the transfer and redesignation of Subsections (b) and
94-13    (c) by this Act, is amended by adding new Subsections (b) and (c)
94-14    and amending Subsections (a), (e), and (f) to read as follows:
94-15          (a)  The commission may, for good cause, deny or amend a
94-16    permit it issues or has authority to issue for reasons pertaining
94-17    to public health, air or water pollution, or land use, or for
94-18    having a compliance history that is unacceptable under the method
94-19    of evaluating compliance history developed by the commission under
94-20    Section 5.754, Water Code, during the period established by the
94-21    commission under that section for consideration of compliance
94-22    history [a violation of this chapter or other applicable laws or
94-23    rules controlling the management of solid waste].
94-24          (b)  The commission shall provide notice under Section 5.669,
94-25    Water Code, and an opportunity for a hearing to the permit holder
94-26    or applicant and persons affected.  The commission may also hold a
94-27    hearing on its own motion.
 95-1          (c)  The commission by rule shall establish procedures for
 95-2    any public hearing under this section.
 95-3          (e)  The commission may deny an original or renewal permit if
 95-4    it is found, after notice and hearing, that:
 95-5                (1)  the permit holder has a compliance history that is
 95-6    unacceptable under the method of evaluating compliance history
 95-7    developed by the commission under Section 5.754, Water Code, during
 95-8    the period established by the commission under that section for
 95-9    consideration of compliance history [record of environmental
95-10    violations in the preceding five years at the permitted site;]
95-11                [(2)  the applicant has a record of environmental
95-12    violations in the preceding five years at any site owned, operated,
95-13    or controlled by the applicant];
95-14                (2) [(3)]  the permit holder or applicant made a false
95-15    or misleading statement in connection with an original or renewal
95-16    application, either in the formal application or in any other
95-17    written instrument relating to the application submitted to the
95-18    commission, its officers, or its employees;
95-19                (3) [(4)]  the permit holder or applicant is indebted
95-20    to the state for fees, payment of penalties, or taxes imposed by
95-21    this title or by a rule of the commission; or
95-22                (4) [(5)]  the permit holder or applicant is unable to
95-23    ensure that the management of the hazardous waste management
95-24    facility conforms or will conform to this title and the rules of
95-25    the commission.
95-26          (f)  Before denying a permit under this section, the
95-27    commission must find:
 96-1                (1)  that the applicant has a compliance history that
 96-2    is unacceptable under the method of evaluating compliance history
 96-3    developed by the commission under Section 5.754, Water Code, during
 96-4    the period established by the commission under that section for
 96-5    consideration of compliance history [a violation or violations are
 96-6    significant and that the permit holder or applicant has not made a
 96-7    substantial attempt to correct the violations]; or
 96-8                (2)  that the permit holder or applicant is indebted to
 96-9    the state for fees, payment of penalties, or taxes imposed by this
96-10    title or by a rule of the commission.
96-11          SECTION 9.24. Section 382.017, Health and Safety Code, as it
96-12    exists after the transfer and redesignation of Subsection (b) by
96-13    this Act, is amended by adding a new Subsection (b) to read as
96-14    follows:
96-15          (b)  Notice of a public hearing on a proposed rule under this
96-16    section must be given as provided by Section 5.670, Water Code.
96-17          SECTION 9.25. Section 382.0518(c), Health and Safety Code, is
96-18    amended to read as follows:
96-19          (c)  In considering the issuance, amendment, or renewal of a
96-20    permit, the commission may consider the applicant's compliance
96-21    history, in accordance with the method for evaluating compliance
96-22    history developed by the commission under Section 5.754, Water
96-23    Code, during the period established by the commission under Section
96-24    5.754, Water Code, for the consideration of compliance history [any
96-25    adjudicated decision or compliance proceeding within the five years
96-26    before the date on which the application was filed that addressed
96-27    the applicant's past performance and compliance with the laws of
 97-1    this state, another state, or the United States governing air
 97-2    contaminants or with the terms of any permit or order issued by the
 97-3    commission].
 97-4          SECTION 9.26. Section 382.05191(a), Health and Safety Code,
 97-5    is amended to read as follows:
 97-6          (a)  An applicant for a permit under Section 382.0519 shall
 97-7    publish notice of intent to obtain the permit in accordance with
 97-8    Section 5.673, Water Code [382.056].
 97-9          SECTION 9.27. Section 382.055, Health and Safety Code, as it
97-10    exists after the transfer and redesignation of Subsection (c) by
97-11    this Act, is amended by adding a new Subsection (c) and amending
97-12    Subsection (d) to read as follows:
97-13          (c)  The commission shall provide notice to the permit
97-14    holder, as provided by Section 5.672, Water Code, that the permit
97-15    is scheduled for review.
97-16          (d)  In determining whether and under which conditions a
97-17    preconstruction permit should be renewed, the commission shall
97-18    consider, at a minimum:
97-19                (1)  [whether] the compliance history of the facility
97-20    according to the method developed by the commission under Section
97-21    5.754, Water Code, for the consideration of compliance history [is
97-22    or has been in substantial compliance with this chapter and the
97-23    terms of the existing permit]; and
97-24                (2)  the condition and effectiveness of existing
97-25    emission control equipment and practices.
97-26          SECTION 9.28. Section 382.056, Health and Safety Code, as it
97-27    exists after the transfer and redesignation of Subsections (a)-(c),
 98-1    (g), and (i) by this Act, is amended by adding a new Subsection
 98-2    (a), relettering Subsections (d)-(f) as Subsections (b)-(d), adding
 98-3    a new Subsection (e), relettering Subsections (h) and (j)-(p) as
 98-4    Subsections (f)-(m), and amending existing Subsections (h) and (o)
 98-5    to read as follows:
 98-6          (a)  An applicant for a permit under Section 382.0518 or a
 98-7    permit renewal review under Section 382.055 shall publish notice of
 98-8    intent to obtain the permit or permit review as provided by Section
 98-9    5.673, Water Code.
98-10          (b) [(d)]  The applicant shall make a copy of the application
98-11    available for review and copying at a public place in the county in
98-12    which the facility or federal source is located or proposed to be
98-13    located.
98-14          (c) [(e)]  The applicant, in cooperation with the executive
98-15    director, may hold a public meeting in the county in which the
98-16    facility or federal source is located or proposed to be located in
98-17    order to inform the public about the application and obtain public
98-18    input.
98-19          (d) [(f)]  The executive director shall conduct a technical
98-20    review of and issue a preliminary decision on the application.
98-21          (e)  If, in response to the notice published under Subsection
98-22    (a) for a permit under Section 382.0518 or a permit renewal review
98-23    under Section 382.055, a person requests during the period provided
98-24    by commission rule that the commission hold a public hearing and
98-25    the request is not withdrawn before the date the preliminary
98-26    decision is issued, the applicant shall publish notice of the
98-27    preliminary decision as provided by Section 5.673(d), Water Code,
 99-1    and the commission shall seek public comment on the preliminary
 99-2    decision.  The commission shall consider the request for public
 99-3    hearing under the procedures provided by Section 5.673(e), Water
 99-4    Code, and Subsections (g)-(k).  The commission may not seek further
 99-5    public comment or hold a public hearing under the procedures
 99-6    provided by Section 5.673(e), Water Code, and Subsections (g)-(k)
 99-7    in response to a request for a public hearing on an amendment,
 99-8    modification, or renewal that would not result in an increase in
 99-9    allowable emissions and would not result in the emission of an air
99-10    contaminant not previously emitted.
99-11          (f) [(h)]  If, in response to the notice published under
99-12    Section 5.673(a), Water Code, [Subsection (a)] for a permit under
99-13    Section 382.054, a person requests during the public comment period
99-14    provided by commission rule that the commission hold a public
99-15    hearing, the commission shall consider the request under the
99-16    procedures provided by Section 382.0561 and not under the
99-17    procedures provided by Section 5.673(e), Water Code, and
99-18    Subsections (g)-(k) [(i)-(n)].
99-19          (g) [(j)]  The applicant shall make a copy of the preliminary
99-20    decision available for review and copying at a public place in the
99-21    county in which the facility is located or proposed to be located.
99-22          (h) [(k)]  During the public comment period, the executive
99-23    director may hold one or more public meetings in the county in
99-24    which the facility is located or proposed to be located.  The
99-25    executive director shall hold a public meeting:
99-26                (1)  on the request of a member of the legislature who
99-27    represents the general area in which the facility is located or
 100-1   proposed to be located; or
 100-2               (2)  if the executive director determines that there is
 100-3   substantial public interest in the proposed activity.
 100-4         (i) [(l)]  The executive director, in accordance with
 100-5   procedures adopted by the commission by rule, shall file with the
 100-6   chief clerk of the commission a response to each relevant and
 100-7   material public comment on the preliminary decision filed during
 100-8   the public comment period.
 100-9         (j) [(m)]  The chief clerk of the commission shall transmit
100-10   the executive director's decision, the executive director's
100-11   response to public comments, and instructions for requesting that
100-12   the commission reconsider the executive director's decision or hold
100-13   a contested case hearing to:
100-14               (1)  the applicant;
100-15               (2)  any person who submitted comments during the
100-16   public comment period;
100-17               (3)  any person who requested to be on the mailing list
100-18   for the permit action; and
100-19               (4)  any person who timely filed a request for a public
100-20   hearing in response to the notice published under Subsection (a).
100-21         (k) [(n)]  Except as provided by Section 382.0561, the
100-22   commission shall consider a request that the commission reconsider
100-23   the executive director's decision or hold a public hearing in
100-24   accordance with the procedures provided by Section 5.556, Water
100-25   Code.
100-26         (l) [(o)]  Notwithstanding other provisions of this chapter,
100-27   the commission may hold a hearing on a permit amendment,
 101-1   modification, or renewal if the commission determines that the
 101-2   application involves a facility for which the applicant's
 101-3   compliance history is unacceptable under the method of evaluating
 101-4   compliance history developed by the commission under Section 5.754,
 101-5   Water Code, during the period established by the commission under
 101-6   that section for consideration of compliance history [contains
 101-7   violations which are unresolved and which constitute a recurring
 101-8   pattern of egregious conduct which demonstrates a consistent
 101-9   disregard for the regulatory process, including the failure to make
101-10   a timely and substantial attempt to correct the violations].
101-11         (m) [(p)]  The commission by rule shall provide for
101-12   additional notice, opportunity for public comment, or opportunity
101-13   for public hearing to the extent necessary to satisfy a requirement
101-14   to obtain or maintain delegation or approval of a federal program.
101-15         SECTION 9.29. Section 382.0561, Health and Safety Code, as it
101-16   exists after the transfer and redesignation of Subsection (f) by
101-17   this Act, is amended by adding a new Subsection (f) to read as
101-18   follows:
101-19         (f)  Notice of the public comment period and opportunity for
101-20   a hearing under this section shall be published in accordance with
101-21   Section 5.674, Water Code.
101-22         SECTION 9.30. Section 382.058, Health and Safety Code, as
101-23   amended by Chapters 391 and 406, Acts of the 76th Legislature,
101-24   Regular Session, 1999, is reenacted and amended to read as follows:
101-25         Sec. 382.058.  NOTICE OF AND HEARING ON CONSTRUCTION OF
101-26   CONCRETE PLANT UNDER PERMIT BY RULE, STANDARD PERMIT, OR EXEMPTION
101-27   [PROVISIONS RELATING TO PERMITS BY RULE OR STANDARD PERMITS FOR
 102-1   COMMISSION EXEMPTION FOR CONSTRUCTION OF CERTAIN CONCRETE PLANTS].
 102-2   (a)  A person may not begin construction on any concrete plant that
 102-3   performs wet batching, dry batching, or central mixing under a
 102-4   standard permit under Section 382.05195 or a permit by rule adopted
 102-5   by the commission under Section 382.05196 unless the person has
 102-6   complied with the notice and opportunity for hearing provisions
 102-7   under Section 5.673, Water Code, and Section 382.056.
 102-8         (b)  This section does not apply to a concrete plant located
 102-9   temporarily in the right-of-way, or contiguous to the right-of-way,
102-10   of a public works project.
102-11         (c)  For purposes of this section, only those persons
102-12   actually residing in a permanent residence within 440 yards of the
102-13   proposed plant may request a hearing under Section 382.056
102-14   [382.056(d)] as a person who may be affected.
102-15         (d)  If the commission considers air dispersion modeling
102-16   information in the course of adopting an exemption under Section
102-17   382.057 for a concrete plant that performs wet batching, dry
102-18   batching, or central mixing, the commission may not require that a
102-19   person who qualifies for the exemption conduct air dispersion
102-20   modeling before beginning construction of a concrete plant, and
102-21   evidence regarding air dispersion modeling may not be submitted at
102-22   a hearing under Section 382.056.
102-23         SECTION 9.31. Section 401.110, Health and Safety Code, is
102-24   amended to read as follows:
102-25         Sec. 401.110.  DETERMINATION ON LICENSE. In making a
102-26   determination whether to grant, deny, amend, revoke, suspend, or
102-27   restrict a license or registration, the department or commission
 103-1   may consider [those aspects of] an applicant's or license holder's
 103-2   [background that bear materially on the ability to fulfill the
 103-3   obligations of licensure, including] technical competence and
 103-4   compliance history under the method for evaluation of compliance
 103-5   history developed by the commission under Section 5.754, Water Code
 103-6   [the applicant's or license holder's record in areas involving
 103-7   radiation].
 103-8         SECTION 9.32. Section 401.112(a), Health and Safety Code, is
 103-9   amended to read as follows:
103-10         (a)  The department or commission, within its jurisdiction,
103-11   in making a licensing decision on a specific license application to
103-12   process or dispose of low-level radioactive waste from other
103-13   persons, shall consider:
103-14               (1)  site suitability, geological, hydrological, and
103-15   meteorological factors, and natural hazards;
103-16               (2)  compatibility with present uses of land near the
103-17   site;
103-18               (3)  socioeconomic effects on surrounding communities
103-19   of operation of the licensed activity and of associated
103-20   transportation of low-level radioactive waste;
103-21               (4)  the need for and alternatives to the proposed
103-22   activity, including an alternative siting analysis prepared by the
103-23   applicant;
103-24               (5)  the applicant's qualifications, including
103-25   financial and[,] technical qualifications[,] and compliance history
103-26   under the method for evaluation of compliance history developed by
103-27   the commission under Section 5.754, Water Code [past operating
 104-1   practices];
 104-2               (6)  background monitoring plans for the proposed site;
 104-3               (7)  suitability of facilities associated with the
 104-4   proposed activities;
 104-5               (8)  chemical, radiological, and biological
 104-6   characteristics of the low-level radioactive waste and waste
 104-7   classification under Section 401.053;
 104-8               (9)  adequate insurance of the applicant to cover
 104-9   potential injury to any property or person, including potential
104-10   injury from risks relating to transportation;
104-11               (10)  training programs for the applicant's employees;
104-12               (11)  a monitoring, record-keeping, and reporting
104-13   program;
104-14               (12)  spill detection and cleanup plans for the
104-15   licensed site and related to associated transportation of low-level
104-16   radioactive waste;
104-17               (13)  decommissioning and postclosure care plans;
104-18               (14)  security plans;
104-19               (15)  worker monitoring and protection plans;
104-20               (16)  emergency plans; and
104-21               (17)  a monitoring program for applicants that includes
104-22   prelicense and postlicense monitoring of background radioactive and
104-23   chemical characteristics of the soils, groundwater, and vegetation.
104-24         SECTION 9.33. Section 401.114, Health and Safety Code, is
104-25   amended to read as follows:
104-26         Sec. 401.114.  NOTICE AND HEARING. (a)  Before the department
104-27   [or commission], within its jurisdiction, grants or renews a
 105-1   license to process [or dispose of] low-level radioactive waste from
 105-2   other persons, the department [agency] shall give notice and shall
 105-3   provide an opportunity for a public hearing in the manner provided
 105-4   by the department's [agency's] formal hearing procedure and Chapter
 105-5   2001, Government Code.
 105-6         (b)  Before the commission, within its jurisdiction, grants
 105-7   or renews a license to dispose of low-level radioactive waste from
 105-8   other persons, the commission shall give notice and shall provide
 105-9   an opportunity for a public hearing in the manner provided by
105-10   Section 5.676, Water Code, the commission's formal hearing
105-11   procedure, and Chapter 2001, Government Code.
105-12         (c)  In addition to other notice, the department [agency]
105-13   shall publish notice of the hearing in the manner provided by
105-14   Chapter 313, Government Code, in the county in which the proposed
105-15   facility is to be located.  The notice shall state the subject and
105-16   the time, place, and date of the hearing.
105-17         (d) [(c)]  The department [agency] shall mail, by certified
105-18   mail in the manner provided by board [the agency's] rules, written
105-19   notice to each person who owns property adjacent to the proposed
105-20   site.  The notice must be mailed not later than the 31st day before
105-21   the date of the hearing and must include the same information that
105-22   is in the published notice.  If true, the department [agency] or
105-23   the applicant must certify that the notice was mailed as required
105-24   by this subsection, and at the hearing the certificate is
105-25   conclusive evidence of the mailing.
105-26         SECTION 9.34. Section 401.116, Health and Safety Code, is
105-27   amended by amending Subsection (b), adding a new Subsection (c),
 106-1   relettering existing Subsections (c) and (d) as Subsections (d) and
 106-2   (e), and amending existing Subsection (d) to read as follows:
 106-3         (b)  The department [or commission, as appropriate,] shall
 106-4   publish notice of an [the license] amendment to a license to
 106-5   process low-level radioactive waste once in the Texas Register and
 106-6   in a newspaper of general circulation in the county in which the
 106-7   licensed activity is located and shall give notice to any person
 106-8   who has notified the department [agency], in advance, of the desire
 106-9   to receive notice of proposed amendment of the license.
106-10         (c)  The commission shall publish notice of an amendment to a
106-11   license to dispose of low-level radioactive waste as provided by
106-12   Section 5.677, Water Code.
106-13         (d)  Notice under Subsection (b) [this section] must include:
106-14               (1)  the identity of the license holder;
106-15               (2)  identification of the license; and
106-16               (3)  a short and plain statement of the license
106-17   amendment's substance.
106-18         (e) [(d)]  The agency shall give notice and hold a hearing to
106-19   consider the license amendment if a person affected files a written
106-20   complaint with the agency before the 31st day after the date on
106-21   which notice is published under Subsection (b) or Section 5.677,
106-22   Water Code, as appropriate.  The agency shall give notice of the
106-23   hearing as provided by Section 401.114 or by Section 5.676, Water
106-24   Code.
106-25                ARTICLE 10.  TRANSITIONS; EFFECTIVE DATE
106-26         SECTION 10.01.  CHANGE OF AGENCY NAME. (a)  Effective January
106-27   1, 2004:
 107-1               (1)  the name of the Texas Natural Resource
 107-2   Conservation Commission is changed to the Texas Department of
 107-3   Environmental Quality, and all powers, duties, rights, and
 107-4   obligations of the Texas Natural Resource Conservation Commission
 107-5   are the powers, duties, rights, and obligations of the Texas
 107-6   Department of Environmental Quality;
 107-7               (2)  a member of the Texas Natural Resource
 107-8   Conservation Commission is a member of the board of the Texas
 107-9   Department of Environmental Quality;
107-10               (3)  all personnel, equipment, data, documents,
107-11   facilities, and other items of the Texas Natural Resource
107-12   Conservation Commission are transferred to the agency under its new
107-13   name; and
107-14               (4)  any appropriation to the Texas Natural Resource
107-15   Conservation Commission is automatically an appropriation to the
107-16   Texas Department of Environmental Quality.
107-17         (b)  Effective January 1, 2004, a reference in law to the
107-18   Texas Natural Resource Conservation Commission is a reference to
107-19   the Texas Department of Environmental Quality.
107-20         (c)  The Texas Natural Resource Conservation Commission shall
107-21   adopt a timetable for phasing in the change of the agency's name so
107-22   as to minimize the fiscal impact of the name change.  Until January
107-23   1, 2004, to allow for phasing in the change of the agency's name
107-24   and in accordance with the timetable established as required by
107-25   this section, the agency may perform any act authorized by law for
107-26   the Texas Natural Resource Conservation Commission as the Texas
107-27   Natural Resource Conservation Commission or as the Texas Department
 108-1   of Environmental Quality.  Any act of the Texas Natural Resource
 108-2   Conservation Commission acting as the Texas Department of
 108-3   Environmental Quality after the effective date of this Act and
 108-4   before January 1, 2004, is an act of the Texas Natural Resource
 108-5   Conservation Commission.
 108-6         SECTION 10.02.  TRANSFER OF SAFE DRINKING WATER LABORATORY
 108-7   CERTIFICATION PROGRAM. (a)  On the effective date of this Act, the
 108-8   following are transferred to the Texas Natural Resource
 108-9   Conservation Commission:
108-10               (1)  all powers, duties, rights, and obligations of the
108-11   Texas Department of Health relating to the safe drinking water
108-12   laboratory certification program administered by the Texas
108-13   Department of Health's bureau of laboratories;
108-14               (2)  all personnel, equipment, data, documents,
108-15   facilities, and other items of the Texas Department of Health
108-16   relating to the safe drinking water laboratory certification
108-17   program; and
108-18               (3)  all appropriations to the Texas Department of
108-19   Health pertaining to the safe drinking water laboratory
108-20   certification program, and all other state or federal money
108-21   available to the Texas Department of Health for that program.
108-22         (b)  On the effective date of this Act, Texas Department of
108-23   Health rules relating to the safe drinking water laboratory
108-24   certification program administered by the Texas Department of
108-25   Health's bureau of laboratories are the rules of the Texas Natural
108-26   Resource Conservation Commission until the commission adopts rules
108-27   to govern that program.
 109-1         (c)  A certification issued by the Texas Department of Health
 109-2   for a safe drinking water laboratory before September 1, 2001,
 109-3   remains in effect until the date it expires or is revoked,
 109-4   notwithstanding the change in law made by this section.
 109-5         SECTION 10.03.  TRANSFER OF ENVIRONMENTAL TESTING LABORATORY
 109-6   CERTIFICATION PROGRAM. (a)  On the effective date of this Act, the
 109-7   following are transferred to the Texas Natural Resource
 109-8   Conservation Commission:
 109-9               (1)  all powers, duties, rights, and obligations of the
109-10   Texas Department of Health relating to the environmental testing
109-11   laboratory certification program administered by the Texas
109-12   Department of Health under Chapter 421, Health and Safety Code;
109-13               (2)  all personnel, equipment, data, documents,
109-14   facilities, and other items of the Texas Department of Health
109-15   relating to the environmental testing laboratory certification
109-16   program; and
109-17               (3)  all appropriations to the Texas Department of
109-18   Health pertaining to the environmental laboratory certification
109-19   program, and all other state or federal money available to the
109-20   Texas Department of Health for that program.
109-21         (b)  On the effective date of this Act, Texas Department of
109-22   Health rules relating to the environmental testing laboratory
109-23   certification program administered by the Texas Department of
109-24   Health under Chapter 421, Health and Safety Code, are the rules of
109-25   the Texas Natural Resource Conservation Commission until the
109-26   commission adopts rules to govern that program.
109-27         (c)  A certification issued by the Texas Department of Health
 110-1   before September 1, 2001, remains in effect until the date it
 110-2   expires or is revoked, notwithstanding the change in law made by
 110-3   this section and by this Act to Chapter 421, Health and Safety
 110-4   Code.
 110-5         (d)  The change in law made by the addition by this Act of
 110-6   Section 5.127, Water Code, relating to the acceptance of
 110-7   environmental testing laboratory results by the Texas Natural
 110-8   Resource Conservation Commission, applies only to environmental
 110-9   testing laboratory results submitted to the commission on or after
110-10   the third anniversary of the date on which the commission publishes
110-11   notice in the Texas Register that the commission's environmental
110-12   laboratory testing program established under Subchapter R, Chapter
110-13   5, Water Code, as added by this Act, has met the standards of the
110-14   National Environmental Laboratory Accreditation Conference.
110-15         SECTION 10.04.  CERTIFICATION OF WATER TREATMENT SPECIALISTS.
110-16   (a)  On the effective date of this Act, the following are
110-17   transferred to the Texas Natural Resource Conservation Commission:
110-18               (1)  all powers, duties, rights, and obligations of the
110-19   Texas Department of Health relating to the certification of water
110-20   treatment specialists administered by the Texas Department of
110-21   Health under Section 3A, The Plumbing License Law (Article
110-22   6243-101, Vernon's Texas Civil Statutes);
110-23               (2)  all equipment, data, documents, facilities, and
110-24   other items of the Texas Department of Health relating to the
110-25   certification of water treatment specialists; and
110-26               (3)  all appropriations to the Texas Department of
110-27   Health pertaining to the certification of water treatment
 111-1   specialists, and all other state or federal money available to the
 111-2   Texas Department of Health for that program.
 111-3         (b)  On the effective date of this Act, Texas Department of
 111-4   Health rules relating to the certification of water treatment
 111-5   specialists are the rules of the Texas Natural Resource
 111-6   Conservation Commission until the commission adopts rules to govern
 111-7   that program.
 111-8         SECTION 10.05.  PERFORMANCE-BASED REGULATION. (a)  Not later
 111-9   than March 1, 2002, the Texas Natural Resource Conservation
111-10   Commission by rule shall establish the components of and standards
111-11   for evaluating compliance history, as required by Section 5.754,
111-12   Water Code, as added by this Act.
111-13         (b)  Not later than September 1, 2002, the Texas Natural
111-14   Resource Conservation Commission shall begin tracking compliance
111-15   for use in establishing the regulatory structure authorized by
111-16   Subchapter Q, Chapter 5, Water Code, as added by this Act.
111-17         (c)  As soon as practicable, but not later than September 1,
111-18   2005, the Texas Natural Resource Conservation Commission shall
111-19   adopt rules governing and shall implement the tiered regulatory
111-20   structure required by Section 5.752, Water Code, as added by this
111-21   Act.  The commission shall adopt the rules and implement the tiered
111-22   regulatory structure in stages over the three-year period.
111-23         (d)  The changes made by this Act in the consideration of
111-24   compliance history in decisions by the Texas Natural Resource
111-25   Conservation Commission relating to the issuance, amendment,
111-26   modification, or renewal of permits under the following sections
111-27   apply only to an application for the issuance, amendment,
 112-1   modification, or renewal of a permit submitted to the Texas Natural
 112-2   Resource Conservation Commission on or after March 1, 2002:
 112-3               (1)  Sections 5.757, 26.028, 26.0281, 26.040, and
 112-4   27.018, Water Code; and
 112-5               (2)  Sections 361.084, 361.088, 361.089, 382.0518,
 112-6   382.055, 382.056, 401.110, and 401.112, Health and Safety Code.
 112-7         (e)  The changes made by this Act in the consideration of
 112-8   compliance history in decisions by the Texas Natural Resource
 112-9   Conservation Commission relating to inspections and flexible
112-10   permitting under Sections 5.758 and 5.759, Water Code, apply,
112-11   effective March 1, 2002, to a person who holds a permit issued by
112-12   the Texas Natural Resource Conservation Commission that is subject
112-13   to those sections.
112-14         (f)  The changes made by this Act in the consideration of
112-15   compliance history in decisions of the Texas Natural Resource
112-16   Conservation Commission relating to the suspension or revocation of
112-17   a permit or the imposition of a penalty in a matter under the
112-18   jurisdiction of the commission applies only to a proceeding that is
112-19   initiated or an action that is brought on or after March 1, 2002.
112-20         (g)  For the period between March 1, 2002, and September 1,
112-21   2005, the commission by rule may temporarily modify specific
112-22   compliance history requirements to implement the regulatory
112-23   structure being developed under Subchapter Q, Chapter 5, Water
112-24   Code.  This section does not authorize the commission to modify
112-25   existing statutory requirements relating to the use of compliance
112-26   history in any enforcement proceeding.
112-27         SECTION 10.06.  FEES. The changes in law made by Sections
 113-1   5.702 and 5.703, Water Code, as added by this Act, relating to the
 113-2   timely payment and adjustment of fees due the Texas Natural
 113-3   Resource Conservation Commission, and by Section 5.706, Water Code,
 113-4   as added by this Act, relating to penalties and interest for
 113-5   delinquent fees, apply only to fees that are due on or after
 113-6   September 1, 2001.
 113-7         SECTION 10.07.  REGULATORY FLEXIBILITY. The change in law
 113-8   made by Section 5.123, Water Code, as added by Chapter 1203, Acts
 113-9   of the 75th Legislature, Regular Session, 1997, relating to
113-10   regulatory flexibility, as transferred, redesignated, and amended
113-11   by this Act, applies only to an application for regulatory
113-12   flexibility that is submitted to the Texas Natural Resource
113-13   Conservation Commission on or after September 1, 2001.
113-14         SECTION 10.08.  COMMISSIONER TRAINING. (a)  As soon as
113-15   practicable after September 1, 2001, but not later than December 1,
113-16   2001, the Texas Natural Resource Conservation Commission shall
113-17   adopt rules to implement the training program for commission
113-18   members required by Section 5.0535, Water Code, as added by this
113-19   Act.
113-20         (b)  The training requirements of Section 5.0535, Water Code,
113-21   as added by this Act, apply only to a member of the commission who
113-22   is appointed on or after January 1, 2002.
113-23         SECTION 10.09.  EXECUTIVE DIRECTOR. The change in law made by
113-24   this Act to Section 5.228, Water Code, relating to hearing
113-25   appearances by the executive director of the Texas Natural Resource
113-26   Conservation Commission, applies only to a hearing in which the
113-27   executive director is named a party on or after September 1, 2001.
 114-1         SECTION 10.10.  INITIATION OF ACTION ON CITIZEN EVIDENCE. (a)
 114-2   Not later than December 1, 2001, the Texas Natural Resource
 114-3   Conservation Commission shall adopt rules to implement the
 114-4   requirements of Section 7.0025, Water Code, as added by this Act,
 114-5   relating to the initiation of enforcement action by the commission
 114-6   based on evidence of an environmental problem submitted by a
 114-7   private individual.
 114-8         (b)  The change in law made by Section 7.0025, Water Code, as
 114-9   added by this Act, applies only to evidence of an environmental
114-10   problem submitted to the Texas Natural Resource Conservation
114-11   Commission on or after January 1, 2002.
114-12         SECTION 10.11.  ADOPTION OF RULES REGARDING REGULATION OF
114-13   CERTAIN FACILITIES AS SOLID WASTE FACILITIES. As soon as
114-14   practicable after the effective date of this Act, the Texas Natural
114-15   Resource Conservation Commission shall adopt rules as necessary to
114-16   implement Section 361.119, Health and Safety Code, as added by this
114-17   Act.
114-18         SECTION 10.12.  EFFECTIVE DATE. Except as otherwise provided
114-19   by this Act, this Act takes effect September 1, 2001.