By Bosse                                              H.B. No. 2912
         77R1054 MI-D                           
                                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 the most recent formal audit of the
 3-1     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 may create and consult with
7-19     advisory committees, work groups, or task forces [councils],
7-20     including committees, work groups, or task forces [councils] for
7-21     the environment, [councils] for public information, or for any
7-22     other matter [councils] that the commission may consider
7-23     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 appointed advisory committees, work groups,
 8-1     and task forces.  This subsection does not require the commission
 8-2     to ensure that all representatives attend a scheduled meeting.  A
 8-3     rule or other action of the commission may not be challenged solely
 8-4     because of the composition of an appointed advisory committee, work
 8-5     group, or task 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 a
8-20     regulatory matter.
8-21           (b)  The written record must state:
8-22                 (1)  the name of the person with whom the communication
8-23     took place;
8-24                 (2)  the name of that person's employer;
8-25                 (3)  the name of the party or interest whom that person
8-26     is representing;
8-27                 (4)  the specific regulatory matter about which the
 9-1     communication is made;
 9-2                 (5)  the date, time, and location of the communication;
 9-3     or
 9-4                 (6)  the specific method of communication, whether in
 9-5     person or by letter, telephone, e-mail, or other method.
 9-6           (c)  A written record prepared as required by this section is
 9-7     subject to disclosure under the public information law, Chapter
 9-8     552, Government Code.
 9-9           (d)  This section does not apply to an unplanned
9-10     communication that occurs outside commission offices.
9-11           SECTION 1.11. Subchapter D, Chapter 5, Water Code, is amended
9-12     by adding Sections 5.1191-5.1193 to read as follows:
9-13           Sec. 5.1191.  RESEARCH COORDINATION; REPORT. (a)  The
9-14     commission shall facilitate research regarding the commission's
9-15     practical regulatory needs by coordinating commission research
9-16     efforts and requirements with the state's scientific and academic
9-17     communities.
9-18           (b)  The commission shall explore private and federal funding
9-19     opportunities for necessary or desirable research projects.  The
9-20     commission may direct and facilitate research based on commission
9-21     research needs by administering grants or by contracting with state
9-22     universities if money is appropriated to the commission for those
9-23     purposes.
9-24           (c)  The commission shall coordinate any research activity
9-25     with existing state initiatives and shall work with state
9-26     universities and the Texas Higher Education Coordinating Board to
9-27     help meet the goals of this section.
 10-1          (d)  To the greatest extent possible, the commission shall
 10-2    use the research expertise of state universities, the U.S.
 10-3    Department of Agriculture, and the Texas Department of Agriculture
 10-4    and other appropriate state agencies.
 10-5          (e)  The commission shall include in the reports required by
 10-6    Section 5.178 a description of cooperative research efforts, an
 10-7    accounting of money spent on research, and a review of the purpose,
 10-8    implementation, and results of particular research projects
 10-9    conducted.
10-10          (f)  This section does not authorize the commission to
10-11    initiate or direct the research efforts of other entities.
10-12          Sec. 5.1192.  RESEARCH ADVISORY BOARD. The commission may
10-13    appoint a research advisory board  to assist the commission in
10-14    providing appropriate incentives to encourage various interest
10-15    groups to participate and make recommendations regarding research
10-16    topics specific to this state.  The research advisory board must
10-17    include representatives of the academic community, representatives
10-18    of the regulated community, and public representatives of the state
10-19    at large.
10-20          Sec. 5.1193.  RESEARCH MODEL. The commission shall develop a
10-21    research model to identify the commission's research needs and to
10-22    obtain funding for research projects.  The research model must
10-23    provide for commission staff to work with representatives of state
10-24    universities, the U.S. Department of Agriculture, the Texas
10-25    Department of Agriculture and other appropriate state agencies, and
10-26    the regulated community to develop long-range research plans and to
10-27    identify and pursue specific research projects.  Commission
 11-1    requests for proposals shall be developed according to research
 11-2    needs identified through use of the model.
 11-3          SECTION 1.12. Subchapter D, Chapter 5, Water Code, is amended
 11-4    by adding Section 5.127 to read as follows:
 11-5          Sec. 5.127.  USE OF ENVIRONMENTAL TESTING LABORATORY DATA AND
 11-6    ANALYSIS. (a)  Except as provided by Subsection (b), the commission
 11-7    may accept environmental testing laboratory data and analysis for
 11-8    use in commission decisions regarding any matter under the
 11-9    commission's jurisdiction relating to permits or other
11-10    authorizations, compliance matters, enforcement actions, or
11-11    corrective actions only if the data and analysis is prepared by an
11-12    environmental testing laboratory accredited by the commission under
11-13    Subchapter R.
11-14          (b)  The commission by rule may exempt from the accreditation
11-15    requirement of Subsection (a) an on-site or in-house environmental
11-16    testing laboratory if the laboratory is inspected as part of a
11-17    regulated entity's general inspection process.
11-18          SECTION 1.13. Subchapter E, Chapter 5, Water Code, is amended
11-19    by adding Section 5.1765 to read as follows:
11-20          Sec. 5.1765.  PUBLICATION OF INFORMATION REGARDING COMPLAINT
11-21    PROCEDURES AND POLICIES. The commission shall establish a process
11-22    for educating the public regarding the commission's complaint
11-23    policies and procedures. As part of the public education process,
11-24    the commission shall make available to the public in pamphlet form
11-25    an explanation of the complaint policies and procedures, including
11-26    information regarding and standards applicable to the collection
11-27    and preservation of credible evidence of environmental problems by
 12-1    members of the public.
 12-2          SECTION 1.14. Sections 5.176 and 5.177, Water Code, are
 12-3    amended to read as follows:
 12-4          Sec. 5.176.  COMPLAINT FILE. The commission shall maintain a
 12-5    [keep an information] file on [about] each written complaint filed
 12-6    with the commission [relating to an entity regulated by the
 12-7    commission].  The file must include:
 12-8                (1)  the name of the person who filed the complaint;
 12-9                (2)  the date the complaint is received by the
12-10    commission;
12-11                (3)  the subject matter of the complaint;
12-12                (4)  the name of each person contacted in relation to
12-13    the complaint;
12-14                (5)  a summary of the results of the review or
12-15    investigation of the complaint; and
12-16                (6)  an explanation of the reason the file was closed,
12-17    if the agency closed the file without taking action other than to
12-18    investigate the complaint.
12-19          Sec. 5.177.  NOTICE OF COMPLAINT PROCEDURES; NOTICE OF
12-20    INVESTIGATION STATUS. (a)  The agency shall provide to the person
12-21    filing the complaint and to each person who is the subject of the
12-22    complaint a copy of the commission's policies and procedures
12-23    relating to complaint investigation and resolution.
12-24          (b)  The [If a written complaint is filed with the commission
12-25    relating to an entity regulated by the commission, the] commission,
12-26    at least [as frequently as] quarterly [and] until final disposition
12-27    of the complaint, shall notify the person filing the complaint and
 13-1    each person who is a subject of [parties to] the complaint of the
 13-2    status of the investigation [complaint] unless the notice would
 13-3    jeopardize an undercover investigation.
 13-4          SECTION 1.15. Subchapter E, Chapter 5, Water Code, is amended
 13-5    by adding Sections 5.1771 and 5.1772 to read as follows:
 13-6          Sec. 5.1771.  COORDINATION OF COMPLAINT INVESTIGATIONS WITH
 13-7    LOCAL ENFORCEMENT OFFICIALS:  TRAINING. (a)  The commission shall
 13-8    share information regarding a complaint made to the commission with
 13-9    local enforcement officials in the county or municipality in which
13-10    the alleged action or omission that is the subject of the complaint
13-11    occurred or is threatening to occur.
13-12          (b)  The commission shall provide training for local
13-13    enforcement officials in investigating complaints and enforcing
13-14    environmental laws relating to matters under the commission's
13-15    jurisdiction under this code or the Health and Safety Code.  The
13-16    training must include, at a minimum:
13-17                (1)  procedures for local enforcement officials to use
13-18    in addressing citizen complaints if the commission is unavailable
13-19    or unable to  respond to the complaint; and
13-20                (2)  an explanation of local government authority to
13-21    enforce state laws and commission rules relating to the
13-22    environment.
13-23          (c)  The commission may charge a reasonable fee for providing
13-24    training to local enforcement officials as required by Subsection
13-25    (b) in an amount sufficient to recover the costs of the training.
13-26          Sec. 5.1772.  AFTER-HOURS RESPONSE TO COMPLAINTS. (a)  The
13-27    commission shall adopt and implement a policy that allows field
 14-1    inspectors to work flexible hours in order to provide response to
 14-2    complaints during periods outside regular business hours.
 14-3          (b)  This section does not:
 14-4                (1)  require availability of field inspectors for
 14-5    response 24 hours a day, seven days a week, in all parts of the
 14-6    state; or
 14-7                (2)  authorize additional use of overtime.
 14-8          SECTION 1.16. Section 5.227, Water Code, is amended to read
 14-9    as follows:
14-10          Sec. 5.227.  EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a)  The
14-11    executive director or his designee shall prepare and maintain a
14-12    written policy statement that implements  [to assure implementation
14-13    of] a program of equal employment opportunity to ensure that
14-14    [whereby] all personnel decisions [transactions] are made without
14-15    regard to race, color, disability [handicap], sex, religion, age,
14-16    or national origin.
14-17          (b)  The policy statement must include:
14-18                (1)  personnel policies, including policies relating to
14-19    recruitment, evaluation, selection, [appointment,] training, and
14-20    promotion of personnel, that show the intent of the commission to
14-21    avoid the unlawful employment practices described by Chapter 21,
14-22    Labor Code; and
14-23                (2)  a comprehensive analysis of the extent to which
14-24    the composition of the commission's personnel is in accordance with
14-25    state and federal law and a description of reasonable methods to
14-26    achieve compliance with state and federal law [work force that
14-27    meets federal and state guidelines;]
 15-1                [(3)  procedures by which a determination can be made
 15-2    of significant underutilization in the commission's work force of
 15-3    all persons for whom federal or state guidelines encourage a more
 15-4    equitable balance; and]
 15-5                [(4)  reasonable methods to address appropriately areas
 15-6    of significant underutilization in the commission's work force of
 15-7    all persons for whom federal or state guidelines encourage a more
 15-8    equitable balance].
 15-9          (c) [(b)]  The policy statement must:
15-10                (1)  [shall be filed with the governor's office before
15-11    November 1, 1985, cover an annual period, and] be updated [at
15-12    least] annually;
15-13                (2)  be reviewed by the state Commission on Human
15-14    Rights for compliance with Subsection (b)(1); and
15-15                (3)  be filed with the governor's office.  [The
15-16    governor's office shall develop a biennial report to the
15-17    legislature based on the information submitted.  This report may be
15-18    made individually or as a part of other biennial reports made to
15-19    the legislature.]
15-20          SECTION 1.17. Subchapter F, Chapter 5, Water Code, is amended
15-21    by adding Section 5.2275 to read as follows:
15-22          Sec. 5.2275.  STATE EMPLOYEE INCENTIVE PROGRAM. The executive
15-23    director or the executive director's designee shall provide to
15-24    commission employees information and training on the benefits and
15-25    methods of participation in the state employee incentive program
15-26    under Subchapter B, Chapter 2108, Government Code.
15-27          SECTION 1.18. Section 5.228, Water Code, is amended to read
 16-1    as follows:
 16-2          Sec. 5.228.  APPEARANCES AT HEARINGS. (a)  The position of
 16-3    and information developed by the commission shall be presented by
 16-4    the executive director or his designated representative at hearings
 16-5    of the commission and the hearings held by federal, state, and
 16-6    local agencies on matters affecting the public's interest in the
 16-7    state's environment and natural resources, including matters that
 16-8    have been determined to be policies of the state.
 16-9          (b)  The executive director may [shall] be named a party in
16-10    hearings before the commission or the State Office of
16-11    Administrative Hearings for the sole purpose of providing
16-12    information to complete the administrative record.  The commission
16-13    by rule shall specify the factors the executive director must
16-14    consider in determining, case by case, whether to be a party in a
16-15    contested case.
16-16          (c)  The executive director or the executive director's
16-17    designated representative may not rehabilitate the testimony of a
16-18    witness unless the witness is a commission employee testifying for
16-19    the sole purpose of providing information to complete the
16-20    administrative record.
16-21          (d)  The executive director or the executive director's
16-22    designated representative may not assist a permit applicant in
16-23    meeting its burden of proof in a hearing before the commission or
16-24    the State Office of Administrative Hearings unless the permit
16-25    applicant fits a category of permit applicant that the commission
16-26    by rule has designated as eligible to receive assistance.  The
16-27    commission shall adopt rules establishing categories of permit
 17-1    applicants eligible to receive assistance.
 17-2          SECTION 1.19. Sections 5.273 and 5.274, Water Code, are
 17-3    amended to read as follows:
 17-4          Sec. 5.273.  DUTIES OF THE PUBLIC INTEREST COUNSEL. (a)  The
 17-5    counsel shall represent the public interest and be a party to all
 17-6    proceedings before the commission.
 17-7          (b)  The counsel may recommend needed legislative and
 17-8    regulatory changes.
 17-9          Sec. 5.274.  STAFF; OUTSIDE TECHNICAL SUPPORT. (a)  The
17-10    office shall be adequately staffed to carry out its functions under
17-11    this code.
17-12          (b)  The counsel may obtain and use outside technical support
17-13    to carry out its functions under this code.
17-14          SECTION 1.20.  Subchapter A, Chapter 7, Water Code, is
17-15    amended by adding Section 7.0025 to read as follows:
17-16          Sec. 7.0025.  INITIATION OF ENFORCEMENT ACTION USING EVIDENCE
17-17    PROVIDED BY PRIVATE INDIVIDUAL. (a)  The commission may initiate an
17-18    enforcement action on a matter under its jurisdiction under this
17-19    code or the Health and Safety Code based on evidence it receives
17-20    from a private individual if that evidence, in the commission's
17-21    judgment, meets the requirements of the Texas Rules of Evidence.
17-22          (b)  The executive director or the executive director's
17-23    designated representative may evaluate the value and credibility of
17-24    evidence received from a private individual and the merits of any
17-25    proposed enforcement action based on that evidence.
17-26          (c)  The commission by rule may adopt criteria for the
17-27    executive director to use in evaluating the value and credibility
 18-1    of evidence received from a private individual and for use of that
 18-2    evidence in an enforcement action.
 18-3          (d)  A private individual who submits evidence on which the
 18-4    commission relies for all or part of an enforcement case may be
 18-5    called to testify in the enforcement proceedings and is subject to
 18-6    all sanctions under law for falsifying evidence.
 18-7                      ARTICLE 2.  NOTICE REQUIREMENTS
 18-8          SECTION 2.01. Chapter 5, Water Code, is amended by adding a
 18-9    heading for Subchapter O to read as follows:
18-10                    SUBCHAPTER O.  NOTICE REQUIREMENTS
18-11          SECTION 2.02. Section 5.115, Water Code, is transferred to
18-12    new Subchapter O, Chapter 5, Water Code, redesignated as Section
18-13    5.651, and amended to read as follows:
18-14          Sec. 5.651 [5.115].  PERSONS AFFECTED IN COMMISSION HEARINGS;
18-15    NOTICE OF APPLICATION FOR PERMIT OR LICENSE. (a)  For the purpose
18-16    of an administrative hearing held by or for the commission
18-17    involving a contested case, "affected person," or "person
18-18    affected," or "person who may be affected" means a person who has a
18-19    personal justiciable interest related to a legal right, duty,
18-20    privilege, power, or economic interest affected by the
18-21    administrative hearing.  An interest common to members of the
18-22    general public does not qualify as a personal justiciable interest.
18-23    The commission shall adopt rules specifying factors which must be
18-24    considered in determining whether a person is an affected person in
18-25    any contested case arising under the air, waste, or water programs
18-26    within the commission's jurisdiction and whether an affected
18-27    association is entitled to standing in contested case hearings.
 19-1          (b)  At the time an application for a permit or license under
 19-2    this code is filed with the executive director and is
 19-3    administratively complete, the commission shall give notice of the
 19-4    application to any person who may be affected by the granting of
 19-5    the permit or license.
 19-6          (c)  At the time an application for any formal action by the
 19-7    commission that will affect lands dedicated to the permanent school
 19-8    fund is filed with the executive director or the commission and is
 19-9    administratively complete, the commission shall give notice of the
19-10    application to the School Land Board.  Notice shall be delivered by
19-11    certified mail, return receipt requested, addressed to the deputy
19-12    commissioner of the asset management division of the General Land
19-13    Office.  Delivery is not complete until the return receipt is
19-14    signed by the deputy commissioner of the asset management division
19-15    of the General Land Office and returned to the commission.
19-16          (d)  The commission shall adopt rules for the notice required
19-17    by this section.
19-18          (e)  The notice must state:
19-19                (1)  the identifying number given the application by
19-20    the commission;
19-21                (2)  the type of permit or license sought under the
19-22    application;
19-23                (3)  the name and address of the applicant;
19-24                (4)  the date on which the application was submitted;
19-25    and
19-26                (5)  a brief summary of the information included in the
19-27    permit application.
 20-1          (f)  The notice to the School Land Board under this section
 20-2    shall additionally:
 20-3                (1)  state the location of the permanent school fund
 20-4    land to be affected; and
 20-5                (2)  describe any foreseeable impact or effect of the
 20-6    commission's action on permanent school fund land.
 20-7          (g)  A formal action or ruling by the commission on an
 20-8    application affecting permanent school fund land that is made
 20-9    without the notice required by this section is voidable by the
20-10    School Land Board as to any permanent school fund lands affected by
20-11    the action or ruling.
20-12          SECTION 2.03. Sections 11.085(f)-(i), Water Code, are
20-13    transferred to new Subchapter O, Chapter 5, Water Code,
20-14    redesignated as Section 5.652, and amended to read as follows:
20-15          Sec. 5.652.  NOTICE OF APPLICATION FOR INTERBASIN TRANSFER.
20-16    (a) [(f)]  Notice of an application for an interbasin transfer
20-17    under Section 11.085 shall be mailed to the following:
20-18                (1)  all holders of permits, certified filings, or
20-19    certificates of adjudication located in whole or in part in the
20-20    basin of origin;
20-21                (2)  each county judge of a county located in whole or
20-22    in part in the basin of origin;
20-23                (3)  each mayor of a city with a population of 1,000 or
20-24    more located in whole or in part in the basin of origin; [and]
20-25                (4)  all groundwater conservation districts located in
20-26    whole or in part in the basin of origin; and
20-27                (5)  each state legislator in both basins.
 21-1          (b) [(g)]  The applicant shall cause the notice of
 21-2    application for an interbasin transfer to be published once a week
 21-3    for two consecutive weeks in one or more newspapers having general
 21-4    circulation in each county located in whole or in part in the basin
 21-5    of origin or the receiving basin.  The published notice may not be
 21-6    smaller than 96.8 square centimeters or 15 square inches with the
 21-7    shortest dimension at least 7.6 centimeters or three inches.  The
 21-8    notice of application and public meetings shall be combined in the
 21-9    mailed and published notices.
21-10          (c) [(h)]  The notice of application must state how a person
21-11    may obtain the information described by Section 11.085(b)
21-12    [Subsection (b) of this section].
21-13          (d) [(i)]  The applicant shall pay the cost of notice
21-14    required to be provided under this section.  The commission by rule
21-15    may establish procedures for payment of those costs.
21-16          SECTION 2.04. Sections 11.132(a)-(c), Water Code, are
21-17    transferred to new Subchapter O, Chapter 5, Water Code,
21-18    redesignated as Section 5.653, and amended to read as follows:
21-19          Sec. 5.653.  NOTICE OF PROPOSED APPROPRIATION OF WATER. (a)
21-20    Notice shall be given to the persons who in the judgment of the
21-21    commission may be affected by an application for authorization to
21-22    appropriate unappropriated state water under Chapter 11, including
21-23    those persons listed in Section 5.654(b) [Subdivision (2),
21-24    Subsection (d), of this section.  The commission, on the motion of
21-25    a commissioner or on the request of the executive director or any
21-26    affected person, shall hold a public hearing on the application].
21-27          (b)  If the proposed use is for irrigation, the commission
 22-1    shall include in the notice a general description of the location
 22-2    and area of the land to be irrigated.
 22-3          (c)  In the notice, the commission shall:
 22-4                (1)  state the name and address of the applicant;
 22-5                (2)  state the date the application was filed;
 22-6                (3)  state the purpose and extent of the proposed
 22-7    appropriation of water;
 22-8                (4)  identify the source of supply and the place where
 22-9    the water is to be stored or taken or diverted from the source of
22-10    supply;
22-11                (5)  specify the time and location where the commission
22-12    will consider the application; and
22-13                (6)  give any additional information the commission
22-14    considers necessary.
22-15          SECTION 2.05. Sections 11.132(d) and (e), Water Code, are
22-16    transferred to new Subchapter O, Chapter 5, Water Code,
22-17    redesignated as Section 5.654, and amended to read as follows:
22-18          Sec. 5.654.  NOTICE REQUIRED TO OBTAIN AUTHORIZATION TO
22-19    APPROPRIATE WATER WITHOUT HEARING. (a)  Not later [(d) The
22-20    commission may act on the application without holding a public
22-21    hearing if:]
22-22                [(1)  not less] than 30 days before the date of action
22-23    by the commission on an [the] application for authorization to
22-24    appropriate unappropriated state water under Chapter 11 [by the
22-25    commission], the applicant shall publish [has published] the
22-26    commission's notice of the application under Section 5.653 at least
22-27    once in a newspaper regularly published or circulated within the
 23-1    section of the state where the source of water is located.[;]
 23-2          (b)  Not later [(2)  not less] than 30 days before the date
 23-3    of action on the application by the commission, the commission
 23-4    shall mail [mails] a copy of the notice by first-class mail,
 23-5    postage prepaid, to:
 23-6                (1) [(A)]  each claimant or appropriator of water from
 23-7    the source of water supply, the record of whose claim or
 23-8    appropriation has been filed with the commission; and
 23-9                (2) [(B)]  all navigation districts within the river
23-10    basin concerned[; and]
23-11                [(3)  within 30 days after the date of the newspaper
23-12    publication of the commission's notice, a public hearing has not
23-13    been requested in writing by a commissioner, the executive
23-14    director, or an affected person who objects to the application].
23-15          (c) [(e)]  The inadvertent failure of the commission to mail
23-16    a notice under [Subdivision (2),] Subsection (b) [(d), of this
23-17    section] to a navigation district that is not a claimant or
23-18    appropriator of water does not prevent the commission's
23-19    consideration of the application.
23-20          SECTION 2.06. Sections 11.143(e) and (f), Water Code, are
23-21    transferred to new Subchapter O, Chapter 5, Water Code,
23-22    redesignated as Section 5.655, and amended to read as follows:
23-23          Sec. 5.655.  NOTICE OF APPLICATION AND OF HEARING ON
23-24    APPLICATION FOR PERMIT TO USE DOMESTIC AND LIVESTOCK RESERVOIR FOR
23-25    OTHER PURPOSES. (a)  The commission shall give notice of an
23-26    application for a permit to use water from a dam or reservoir
23-27    exempted under Section 11.142 for a purpose other than domestic or
 24-1    livestock use as provided by this section.
 24-2          (b) [(e)]  In the notice, the commission shall:
 24-3                (1)  state the name and post-office address of the
 24-4    applicant;
 24-5                (2)  state the date the application was filed;
 24-6                (3)  state the purpose and extent of the proposed
 24-7    appropriation of water;
 24-8                (4)  identify the source of supply and the place where
 24-9    the water is stored; and
24-10                (5)  specify the time and place of the hearing.
24-11          (c) [(f)]  The notice shall be published only once, at least
24-12    20 days before the date stated in the notice for the hearing on the
24-13    application, in a newspaper having general circulation in the
24-14    county where the dam or reservoir is located.  At least 15 days
24-15    before the date set for the hearing, the commission shall transmit
24-16    a copy of the notice by first-class mail to each person whose claim
24-17    or appropriation has been filed with the commission and whose
24-18    diversion point is downstream from that described in the
24-19    application.
24-20          SECTION 2.07. Section 11.143(d), Water Code, is transferred
24-21    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
24-22    5.656, and amended to read as follows:
24-23          Sec. 5.656.  NOTICE REQUIRED TO OBTAIN A PERMIT WITHOUT
24-24    HEARING TO USE DOMESTIC AND LIVESTOCK RESERVOIR FOR OTHER PURPOSES.
24-25    (a)  Not later [(d)  Except as otherwise specifically provided by
24-26    this subsection, before the commission may approve the application
24-27    and issue the permit, it shall give notice and hold a hearing as
 25-1    prescribed by this section.  The commission may act on the
 25-2    application without holding a public hearing if:]
 25-3                [(1)  not less] than 30 days before the date of action
 25-4    by the commission on an [the] application to obtain a permit under
 25-5    Section 11.143 to use water from a dam or reservoir exempted under
 25-6    Section 11.142 for a purpose other than domestic or livestock use
 25-7    [by the commission], the applicant shall publish [has published]
 25-8    the commission's notice of the application at least once in a
 25-9    newspaper regularly published or circulated within the section of
25-10    the state where the source of water is located.[;]
25-11          (b)  Not later [(2)  not less] than 30 days before the date
25-12    of action on the application by the commission, the commission
25-13    shall mail [mails] a copy of the notice by first-class mail,
25-14    postage prepaid, to each person whose claim or appropriation has
25-15    been filed with the commission and whose diversion point is
25-16    downstream from that described in the application[; and]
25-17                [(3)  within 30 days after the date of the newspaper
25-18    publication of the commission's notice, a public hearing is not
25-19    requested in writing by a commissioner, the executive director, or
25-20    an affected person who objects to the application].
25-21          SECTION 2.08. Section 11.175, Water Code, is transferred to
25-22    new Subchapter O, Chapter 5, Water Code, redesignated as Section
25-23    5.657, and amended to read as follows:
25-24          Sec. 5.657 [11.175].  NOTICE OF CANCELLATION PROCEEDING. (a)
25-25    At least 45 days before the date of a [the] hearing on the proposed
25-26    cancellation of a permit, certified filing, or certificate of
25-27    adjudication under Section 11.176, the commission shall send notice
 26-1    of the hearing to the holder of the permit, certified filing, or
 26-2    certificate of adjudication being considered for cancellation in
 26-3    whole or in part.  Notice shall be sent by certified mail, return
 26-4    receipt requested, to the last address shown by the records of the
 26-5    commission.  The commission shall also send notice by regular mail
 26-6    to all other holders of permits, certified filings, certificates of
 26-7    adjudication, and claims of unadjudicated water rights filed
 26-8    pursuant to Section 11.303 [of this code] in the same watershed.
 26-9          (b)  The commission shall also have the notice of the hearing
26-10    published once a week for two consecutive weeks, at least 30 days
26-11    before the date of the hearing, in a newspaper published in each
26-12    county in which diversion of water from the source of supply was
26-13    authorized or proposed to be made and in each county in which the
26-14    water was authorized or proposed to be used, as shown by the
26-15    records of the commission.  If in any such county no newspaper is
26-16    published, then the notice may be published in a newspaper having
26-17    general circulation in the county.
26-18          SECTION 2.09. Sections 26.022(b) and (c), Water Code, are
26-19    transferred to new Subchapter O, Chapter 5, Water Code,
26-20    redesignated as Section 5.658, and amended to read as follows:
26-21          Sec. 5.658.  NOTICE OF HEARINGS HELD UNDER CHAPTER 26.
26-22    (a)  Except as otherwise provided by Sections 5.501, 5.504, 5.509,
26-23    and 26.176, notice [(b)  Notice] of all hearings held under Chapter
26-24    26 [the hearing] shall be published at least once in a newspaper
26-25    regularly published or circulated in each county where, by virtue
26-26    of the county's geographical relation to the subject matter of the
26-27    hearing, the commission has reason to believe persons reside who
 27-1    may be affected by the action that may be taken as a result of the
 27-2    hearing.  The date of the publication shall be not less than 20
 27-3    days before the date set for the hearing.
 27-4          (b) [(c)]  If notice of the hearing is required by Chapter 26
 27-5    [this chapter] to be given to a person, the notice shall be served
 27-6    personally or mailed not less than 20 days before the date set for
 27-7    the hearing to the person at his last address known to the
 27-8    commission.  If the party is not an individual, the notice may be
 27-9    given to any officer, agent, or legal representative of the party.
27-10          SECTION 2.10. Sections 26.028(a), (b), and (e), Water Code,
27-11    are transferred to new Subchapter O, Water Code, redesignated as
27-12    Section 5.659, and amended to read as follows:
27-13          Sec. 5.659.  NOTICE TO AFFECTED PERSONS OF APPLICATION FOR
27-14    PERMIT, PERMIT AMENDMENT, OR PERMIT RENEWAL UNDER CHAPTER 26. (a)
27-15    The commission shall give notice [Notice] of an application for a
27-16    permit, permit amendment, or permit renewal under Chapter 26 [shall
27-17    be given] to the persons who in the judgment of the commission may
27-18    be affected by the application, except as provided by this section.
27-19          (b)  For any application involving an average daily discharge
27-20    of five million gallons or more, the notice shall be given:
27-21                (1)  not later than 20 days before the date on which
27-22    the commission acts on the application; and
27-23                (2)  to each county judge in the county or counties
27-24    located within 100 statute miles of the point of discharge who have
27-25    requested in writing that the commission give that notice and
27-26    through which water, into or adjacent to which waste or pollutants
27-27    are to be discharged under the permit, flows after the discharge.
 28-1          (c) [(e)]  Notice of an application under Section 26.028(c)
 28-2    must [Subsection (d) shall] be mailed to the mayor and health
 28-3    authorities for the city or town, and the county judge and health
 28-4    authorities for the county in which the waste is or will be
 28-5    discharged, at least 10 days before the commission meeting[, and
 28-6    they may present information to the commission on the application].
 28-7          SECTION 2.11. Section 26.028(g), Water Code, is transferred
 28-8    to new Subsection O, Chapter 5, Water Code, redesignated as Section
 28-9    5.660, and amended to read as follows:
28-10          Sec. 5.660.  NOTICE REQUIRED TO OBTAIN PERMIT DECISION
28-11    WITHOUT HEARING UNDER SECTION 26.028(a). (a)  Not later [(g)  For
28-12    the purposes of Subsection(c), the commission may act on the
28-13    application without holding a public hearing if all of the
28-14    following conditions are met:]
28-15                [(1)  not less] than 30 days before the date of action
28-16    by the commission on an [the] application for a permit, permit
28-17    amendment, or permit renewal under Chapter 26 [by the commission],
28-18    the applicant shall publish [has published] the commission's notice
28-19    of the application at least once in a newspaper regularly published
28-20    or circulated within each county where the proposed facility or
28-21    discharge is located and in each county affected by the
28-22    discharge.[;]
28-23          (b)  Not later [(2)  not less] than 30 days before the date
28-24    of action on the application by the commission, the applicant shall
28-25    serve or mail [has served or mailed] the commission's notice of the
28-26    application to persons who in the judgment of the commission may be
28-27    affected, including the county judges as required by Section
 29-1    5.659(b) [Subsection (b) of this section].  As part of the [his]
 29-2    application the applicant shall submit an affidavit which lists the
 29-3    names and addresses of the persons who may be affected by the
 29-4    application and includes the source of the list[;]
 29-5                [(3)  within 30 days after the date of the newspaper
 29-6    publication of the commission's notice, neither a commissioner, the
 29-7    executive director, nor an affected person who objects to the
 29-8    application has requested a public hearing].
 29-9          SECTION 2.12. Section 26.040(b), Water Code, is transferred
29-10    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
29-11    5.661, and amended to read as follows:
29-12          Sec. 5.661.  NOTICE OF PROPOSED GENERAL PERMIT TO DISCHARGE
29-13    WASTE INTO OR ADJACENT TO STATE WATERS. (a) [(b)]  The commission
29-14    shall publish notice of a proposed general permit to discharge
29-15    waste into or adjacent to waters in the state under Section 26.040
29-16    in a daily or weekly newspaper of general circulation in the area
29-17    affected by the activity that is the subject of the proposed
29-18    general permit and in the Texas Register.
29-19          (b)  For a statewide general permit, the commission shall
29-20    designate one or more newspapers of statewide or regional
29-21    circulation and shall publish notice of the proposed statewide
29-22    general permit in each designated newspaper in addition to the
29-23    Texas Register.
29-24          (c)  The notice must include an invitation for written
29-25    comments by the public to the commission regarding the proposed
29-26    general permit and shall be published not later than the 30th day
29-27    before the commission adopts the general permit.
 30-1          (d)  The commission by rule may require additional notice to
 30-2    be given.
 30-3          SECTION 2.13. Section 27.018(b), Water Code, is transferred
 30-4    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
 30-5    5.662, and amended to read as follows:
 30-6          Sec. 5.662.  NOTICE OF OPPORTUNITY FOR HEARING ON PERMIT
 30-7    APPLICATION FOR INJECTION WELL TO DISPOSE OF INDUSTRIAL AND
 30-8    MUNICIPAL WASTE.  [(b)]  The commission by rule shall provide for
 30-9    giving notice of the opportunity to request a public hearing on a
30-10    permit application for an injection well to dispose of industrial
30-11    and municipal waste under Chapter 27.  The rules for notice shall
30-12    include provisions for giving notice to local governments and
30-13    affected persons.  The commission shall define "affected person" by
30-14    rule.
30-15          SECTION 2.14. Section 361.063(c), Health and Safety Code, is
30-16    transferred to new Subchapter O, Chapter 5, Water Code,
30-17    redesignated as Section 5.663, and amended to read as follows:
30-18          Sec. 5.663.  NOTICE OF INTENT TO FILE APPLICATION FOR
30-19    HAZARDOUS WASTE PERMIT. [(c)]  If an applicant for a permit for a
30-20    hazardous waste management facility decides to participate in a
30-21    local review committee process under Section 361.063, Health and
30-22    Safety Code, the applicant must file with the commission a notice
30-23    of intent to file an application, setting forth the proposed
30-24    location and type of hazardous waste management facility.  A copy
30-25    of the notice shall be delivered to the county judge of the county
30-26    in which the facility is to be located.  In addition, if the
30-27    proposed facility is to be located in a municipality or the
 31-1    extraterritorial jurisdiction of a municipality, a copy of the
 31-2    notice shall be delivered to the mayor of the municipality.  [The
 31-3    filing of the notice with the commission initiates the
 31-4    preapplication review process.]
 31-5          SECTION 2.15. Section 361.0665, Health and Safety Code, is
 31-6    transferred to new Subchapter O, Chapter 5, Water Code,
 31-7    redesignated as Section 5.664, and amended to read as follows:
 31-8          Sec. 5.664 [361.0665].  NOTICE OF INTENT TO OBTAIN MUNICIPAL
 31-9    SOLID WASTE PERMIT.  (a)  A person who applies for a municipal
31-10    solid waste permit shall publish notice of intent to obtain a
31-11    permit under Chapter 361, Health and Safety Code, [this chapter] at
31-12    least once in a newspaper of the largest general circulation that
31-13    is published in the county in which the facility is located or
31-14    proposed to be located.
31-15          (b)  Notice must include:
31-16                (1)  a description of the location or proposed location
31-17    of the facility;
31-18                (2)  a statement that a person who may be affected by
31-19    the facility or proposed facility is entitled to request a hearing
31-20    from the commission;
31-21                (3)  the manner in which the commission may be
31-22    contacted for further information; and
31-23                (4)  any other information that the commission by rule
31-24    requires.
31-25          (c)  If a newspaper is not published in the county, the
31-26    notice must be published in a newspaper of general circulation in
31-27    the county in which the facility is located or proposed to be
 32-1    located and in a newspaper of circulation in the immediate vicinity
 32-2    in which the facility is located or proposed to be located as
 32-3    defined by commission rule.
 32-4          (d)  In addition, the commission shall publish notice in the
 32-5    Texas Register.
 32-6          SECTION 2.16. Sections 361.079(a) and (c), Health and Safety
 32-7    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
 32-8    redesignated as Section 5.665, and amended to read as follows:
 32-9          Sec. 5.665.  NOTICE OF APPLICATION FOR SOLID WASTE OR
32-10    HAZARDOUS INDUSTRIAL SOLID WASTE PERMIT. (a)  Except as provided by
32-11    Sections  361.080(b) and 361.081(c), Health and Safety Code, the
32-12    commission by rule shall establish procedures for public notice
32-13    [and a public hearing] under Section 361.080 or 361.081, Health and
32-14    Safety Code.
32-15          (b) [(c)]  To improve the timeliness of notice to the public
32-16    of a public hearing under Section 361.080 or 361.081, Health and
32-17    Safety Code, public notice of receipt of the permit application
32-18    shall be provided at the time a permit application is submitted to
32-19    the commission.
32-20          SECTION 2.17. Sections 361.0791(e), (f), and (g),  Health and
32-21    Safety Code, are transferred to new Subchapter O, Chapter 5, Water
32-22    Code, redesignated as Section 5.666, and amended to read as
32-23    follows:
32-24          Sec. 5.666.  NOTICE OF REQUIRED PUBLIC MEETING ON APPLICATION
32-25    FOR PERMIT FOR NEW HAZARDOUS WASTE MANAGEMENT FACILITY. (a) [(e)]
32-26    If a meeting is required under Section 361.0791(a), Health and
32-27    Safety Code [Subsection (a)], not less than once each week during
 33-1    the three weeks preceding a public meeting, the applicant shall
 33-2    publish notice of the meeting in the newspaper of the largest
 33-3    general circulation that is published in the county in which the
 33-4    proposed facility is to be located or, if no newspaper is published
 33-5    in the county, in a newspaper of general circulation in the county.
 33-6    The applicant shall provide the commission an affidavit certifying
 33-7    that the notice was given as required by this section.  Acceptance
 33-8    of the affidavit creates a rebuttable presumption that the
 33-9    applicant has complied with this section.
33-10          (b) [(f)]  The published notice may not be smaller than 96.8
33-11    square centimeters or 15 square inches with the shortest dimension
33-12    at least 7.6 centimeters or three inches and shall contain, at a
33-13    minimum, the following information:
33-14                (1)  the permit application number;
33-15                (2)  the applicant's name;
33-16                (3)  the proposed location of the facility; and
33-17                (4)  the location and availability of copies of the
33-18    permit application.
33-19          (c) [(g)]  The applicant shall pay the cost of notice
33-20    required to be provided under this section.  The commission by rule
33-21    may establish procedures for payment of those costs.
33-22          SECTION 2.18. Sections 361.081(a) and (b), Health and Safety
33-23    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
33-24    redesignated as Section 5.667, and amended to read as follows:
33-25          Sec. 5.667.  NOTICE OF HEARING ON APPLICATION FOR SOLID WASTE
33-26    FACILITY. (a)  The [commission shall require the] applicant shall
33-27    [to] mail notice to each residential or business address located
 34-1    within one-half mile of a new solid waste management facility and
 34-2    to each owner of real property located within one-half mile of a
 34-3    new solid waste management facility listed in the real property
 34-4    appraisal records of the appraisal district in which the solid
 34-5    waste management facility is sought to be permitted under Chapter
 34-6    361, Health and Safety Code, as of the date the commission
 34-7    determines the permit application is administratively complete. The
 34-8    notice must be sent by mail and must be deposited with the United
 34-9    States postal service not more than 45 days or less than 30 days
34-10    before the date of the hearing.
34-11          (b)  The applicant must certify to the commission that the
34-12    mailings were deposited as required by Subsection (a).  Acceptance
34-13    of the certification creates a rebuttable presumption that the
34-14    applicant has complied with this section.  Substantial compliance
34-15    with the notice requirements of Subsection (a) is sufficient for
34-16    the commission to exercise jurisdiction over an application for a
34-17    solid waste facility.
34-18          SECTION 2.19. Section 361.082(c), Health and Safety Code, is
34-19    transferred to new Subchapter O, Chapter 5, Water Code,
34-20    redesignated as Section 5.668, and amended to read as follows:
34-21          Sec. 5.668.  NOTICE OF PUBLIC HEARING ON APPLICATION FOR
34-22    HAZARDOUS WASTE PERMIT. [(c)]  The commission by rule shall
34-23    establish procedures for public notice of a [and] public hearing on
34-24    an application for a hazardous waste permit under Section 361.082,
34-25    Health and Safety Code. At a minimum, the rules shall include the
34-26    public notice requirements set forth in Section 5.667 [361.081].
34-27          SECTION 2.20. Sections 361.089(b) and (c), Health and Safety
 35-1    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
 35-2    redesignated as Section 5.669, and amended to read as follows:
 35-3          Sec. 5.669.  NOTICE REGARDING DENIAL OR AMENDMENT OF SOLID
 35-4    WASTE PERMIT. (a)  The [(b)  Except as provided by Section 361.110,
 35-5    the] commission shall notify each governmental entity listed under
 35-6    Section 361.067, Health and Safety Code, regarding possible
 35-7    commission action to deny or amend a solid waste permit under
 35-8    Section 361.089, Health and Safety Code [and provide an opportunity
 35-9    for a hearing to the permit holder or applicant and persons
35-10    affected.  The commission may also hold a hearing on its own
35-11    motion].
35-12          (b) [(c)]  The commission by rule shall establish procedures
35-13    for public notice of [and] any public hearing on the denial or
35-14    amendment of a solid waste permit under Section 361.089, Health and
35-15    Safety Code [this section].
35-16          SECTION 2.21. Section 382.017(b), Health and Safety Code, is
35-17    transferred to Subchapter O, Chapter 5, Water Code, redesignated as
35-18    Section 5.670, and amended to read as follows:
35-19          Sec. 5.670.  NOTICE OF HEARING ON ADOPTION OF STATEWIDE RULE
35-20    RELATING TO AIR POLLUTION. [(b)]  If a [the] rule adopted under
35-21    Section 382.017, Health and Safety Code, will have statewide
35-22    effect, notice of the date, time, place, and purpose of the hearing
35-23    shall be published one time at least 20 days before the scheduled
35-24    date of the hearing in at least three newspapers, the combined
35-25    circulation of which will, in the commission's judgment, give
35-26    reasonable circulation throughout the state.  If the rule will have
35-27    effect in only a part of the state, the notice shall be published
 36-1    one time at least 20 days before the scheduled date of the hearing
 36-2    in a newspaper of general circulation in the area to be affected.
 36-3          SECTION 2.22. Section 382.0516, Health and Safety Code, is
 36-4    transferred to new Subchapter O, Chapter 5, Water Code,
 36-5    redesignated as Section 5.671, and amended to read as follows:
 36-6          Sec. 5.671 [382.0516].  NOTICE TO STATE SENATOR AND
 36-7    REPRESENTATIVE OF RECEIPT OF PERMIT APPLICATION FOR A FACILITY THAT
 36-8    MAY EMIT AIR CONTAMINANTS.  On receiving an application under
 36-9    Chapter 382, Health and Safety Code, for a construction permit, a
36-10    special permit, or an operating permit for a facility that may emit
36-11    air contaminants, the commission shall send notice of the
36-12    application to the state senator and representative who represent
36-13    the area in which the facility is or will be located.
36-14          SECTION 2.23.  Section 382.055(c), Health and Safety Code, is
36-15    transferred to new Subchapter O, Chapter 5, Water Code,
36-16    redesignated as Section 5.672, and amended to read as follows:
36-17          Sec. 5.672.  NOTICE TO PERMIT HOLDER OF REVIEW AND RENEWAL OF
36-18    PRECONSTRUCTION PERMIT. [(c)]  Not less than 180 days before the
36-19    date on which an [the renewal] application for renewal of a
36-20    preconstruction permit is due under Section 382.055, Health and
36-21    Safety Code, the commission shall provide written notice to the
36-22    permit holder, by registered or certified mail, that the permit is
36-23    scheduled for review in accordance with this section.  The notice
36-24    must include a description of the procedure for filing a renewal
36-25    application and the information to be included in the application.
36-26          SECTION 2.24. Sections 382.056(a)-(c), (g), and (i), Health
36-27    and Safety Code, are transferred to new Subchapter O, Chapter 5,
 37-1    Water Code, redesignated as Section 5.673, and amended to read as
 37-2    follows:
 37-3          Sec. 5.673.  NOTICE OF INTENT TO OBTAIN PRECONSTRUCTION
 37-4    PERMIT OR PERMIT REVIEW. (a)  An applicant for a permit under
 37-5    Section 382.0518, Health and Safety Code, or a permit renewal
 37-6    review under Section 382.055, Health and Safety Code, shall publish
 37-7    notice of intent to obtain the permit or permit review not later
 37-8    than the 30th day after the date the commission determines the
 37-9    application to be administratively complete.  The commission by
37-10    rule shall require an applicant for a federal operating permit
37-11    under Section 382.054, Health and Safety Code, to publish notice of
37-12    intent to obtain a permit or permit review consistent with federal
37-13    requirements and with the requirements of Subsection (b). The
37-14    applicant shall publish the notice at least once in a newspaper of
37-15    general circulation in the municipality in which the facility or
37-16    federal source is located or is proposed to be located or in the
37-17    municipality nearest to the location or proposed location of the
37-18    facility or federal source.  If the elementary or middle school
37-19    nearest to the facility or proposed facility provides a bilingual
37-20    education program as required by Subchapter B, Chapter 29,
37-21    Education Code, the applicant shall also publish the notice at
37-22    least once in an additional publication of general circulation in
37-23    the municipality or county in which the facility is located or
37-24    proposed to be located that is published in the language taught in
37-25    the bilingual education program.  This requirement is waived if
37-26    such a publication does not exist or if the publisher refuses to
37-27    publish the notice.  The commission by rule shall prescribe the
 38-1    form and content of the notice and when notice must be published.
 38-2    The commission may require publication of additional notice.  The
 38-3    commission by rule shall prescribe alternative procedures for
 38-4    publication of the notice in a newspaper if the applicant is a
 38-5    small business stationary source as defined by Section 382.0365,
 38-6    Health and Safety Code, and will not have a significant effect on
 38-7    air quality.  The alternative procedures must be cost-effective
 38-8    while ensuring adequate notice.  Notice required to be published
 38-9    under this section shall only be required to be published in the
38-10    United States.
38-11          (b)  The notice must include:
38-12                (1)  a description of the location or proposed location
38-13    of the facility or federal source;
38-14                (2)  the location at which a copy of the application is
38-15    available for review and copying as provided by Section 382.056(b),
38-16    Health and Safety Code [Subsection (d)];
38-17                (3)  a description, including a telephone number, of
38-18    the manner in which the commission may be contacted for further
38-19    information;
38-20                (4)  a description, including a telephone number, of
38-21    the manner in which the applicant may be contacted for further
38-22    information;
38-23                (5)  a description of the procedural rights and
38-24    obligations of the public, printed in a font style or size that
38-25    clearly provides emphasis and distinguishes it from the remainder
38-26    of the notice, that includes a statement that a person who may be
38-27    affected by emissions of air contaminants from the facility,
 39-1    proposed facility, or federal source is entitled to request a
 39-2    hearing from the commission;
 39-3                (6)  a description of the procedure by which a person
 39-4    may be placed on a mailing list in order to receive additional
 39-5    information about the application;
 39-6                (7)  the time and location of any public meeting to be
 39-7    held under Section 382.056(c), Health and Safety Code [Subsection
 39-8    (e)]; and
 39-9                (8)  any other information the commission by rule
39-10    requires.
39-11          (c)  At the site of a facility, proposed facility, or federal
39-12    source for which an applicant is required to publish notice under
39-13    this section, the applicant shall place a sign declaring the filing
39-14    of an application for a permit or permit review for a facility at
39-15    the site and stating the manner in which the commission may be
39-16    contacted for further information.  The commission shall adopt any
39-17    rule necessary to carry out this subsection.
39-18          (d) [(g)]  If, in response to the notice published under
39-19    Subsection (a) for a permit under Section 382.0518, Health and
39-20    Safety Code, or a permit renewal review under Section 382.055,
39-21    Health and Safety Code, a person requests during the period
39-22    provided by commission rule that the commission hold a public
39-23    hearing and the request is not withdrawn before the date the
39-24    preliminary decision is issued, the applicant shall publish notice
39-25    of the preliminary decision in a newspaper, and the commission
39-26    shall seek public comment on the preliminary decision.  [The
39-27    commission shall consider the request for public hearing under the
 40-1    procedures provided by Subsections (i)-(n).  The commission may not
 40-2    seek further public comment or hold a public hearing under the
 40-3    procedures provided by Subsections (i)-(n) in response to a request
 40-4    for a public hearing on an amendment, modification, or renewal that
 40-5    would not result in an increase in allowable emissions and would
 40-6    not result in the emission of an air contaminant not previously
 40-7    emitted.]
 40-8          (e) [(i)]  The commission by rule shall establish the form
 40-9    and content of the notice, the manner of publication, and the
40-10    duration of the public comment period.  The notice must include:
40-11                (1)  the information required by Subsection (b);
40-12                (2)  a summary of the preliminary decision;
40-13                (3)  the location at which a copy of the preliminary
40-14    decision is available for review and copying as provided by Section
40-15    382.056(g), Health and Safety Code [Subsection (j)];
40-16                (4)  a description of the manner in which comments
40-17    regarding the preliminary decision may be submitted; and
40-18                (5)  any other information the commission by rule
40-19    requires.
40-20          SECTION 2.25. Section 382.0561(f), Health and Safety Code, is
40-21    transferred to new Subchapter O, Chapter 5, Water Code,
40-22    redesignated as Section 5.674, and amended to read as follows:
40-23          Sec. 5.674.  NOTICE OF COMMENT PERIOD AND HEARING ON FEDERAL
40-24    OPERATING PERMIT. [(f)]  Notice of the public comment period and
40-25    opportunity for a hearing on an application for issuance, revision,
40-26    reopening, or renewal of a federal operating permit under Section
40-27    382.0561, Health and Safety Code, [this section] shall be published
 41-1    in accordance with Section 5.673 [382.056].
 41-2          SECTION 2.26. Section 382.0562, Health and Safety Code, is
 41-3    transferred to new Subchapter O, Chapter 5, Water Code,
 41-4    redesignated as Section 5.675, and amended to read as follows:
 41-5          Sec. 5.675 [382.0562].  NOTICE OF DECISION ON FEDERAL
 41-6    OPERATING PERMIT. (a)  The commission or its designee shall send
 41-7    notice of a proposed final action on a federal operating permit
 41-8    under Section 382.0542, Health and Safety Code, by first-class mail
 41-9    to the applicant and all persons who comment during the public
41-10    comment period or at the public hearing.  The notice shall include
41-11    a response to any comment submitted during the public comment
41-12    period and shall identify any change in the conditions of the draft
41-13    permit and the reasons for the change.
41-14          (b)  The notice required by Subsection (a) shall:
41-15                (1)  state that any person affected by the decision of
41-16    the commission or its designee may petition the administrator in
41-17    accordance with Section 382.0563, Health and Safety Code, and rules
41-18    adopted under that section;
41-19                (2)  state the date by which the petition must be
41-20    filed; and
41-21                (3)  explain the petition process.
41-22          SECTION 2.27. New Subchapter O, Chapter 5, Water Code, is
41-23    amended by adding Sections 5.676 and 5.677 to read as follows:
41-24          Sec. 5.676.  NOTICE OF HEARING ON ISSUANCE OR RENEWAL OF
41-25    LICENSE TO DISPOSE OF LOW-LEVEL RADIOACTIVE WASTE. (a)  Notice of a
41-26    hearing on the issuance or renewal of a license to dispose of
41-27    low-level radioactive waste under Section 401.114, Health and
 42-1    Safety Code, shall be given as provided by this section and Section
 42-2    401.114, Health and Safety Code.
 42-3          (b)  In addition to other notice, the commission shall
 42-4    publish notice of the hearing in the manner provided by Chapter
 42-5    313, Government Code, in the county in which the proposed facility
 42-6    is to be located.  The notice shall state the subject and the time,
 42-7    place, and date of the hearing.
 42-8          (c)  The commission shall mail, by certified mail in the
 42-9    manner provided by the commission's rules, written notice to each
42-10    person who owns property adjacent to the proposed site.  The notice
42-11    must be mailed not later than the 31st day before the date of the
42-12    hearing and must include the same information that is in the
42-13    published notice.  If true, the commission or the applicant must
42-14    certify that the notice was mailed as required by this subsection,
42-15    and at the hearing the certificate is conclusive evidence of the
42-16    mailing.
42-17          Sec. 5.677.  NOTICE OF AMENDMENT TO LICENSE TO DISPOSE OF
42-18    LOW-LEVEL RADIOACTIVE WASTE. (a)  The commission shall publish
42-19    notice of an amendment to a license to dispose of low-level
42-20    radioactive waste under Section 401.116, Health and Safety Code,
42-21    once in the Texas Register and in a newspaper of general
42-22    circulation in the county in which the licensed activity is located
42-23    and shall give notice to any person who has notified the agency, in
42-24    advance, of the desire to receive notice of proposed amendment of
42-25    the license.
42-26          (b)  Notice under this section must include:
42-27                (1)  the identity of the license holder;
 43-1                (2)  identification of the license; and
 43-2                (3)  a short and plain statement of the license
 43-3    amendment's substance.
 43-4                             ARTICLE 3.  FEES
 43-5          SECTION 3.01. Chapter 5, Water Code, is amended by adding a
 43-6    heading for Subchapter P to read as follows:
 43-7                            SUBCHAPTER P.  FEES
 43-8          SECTION 3.02. Section 5.235, Water Code, is transferred to
 43-9    new Subchapter P, Chapter 5, Water Code, and redesignated as
43-10    Section 5.701 to read as follows:
43-11          Sec. 5.701 [5.235].  FEES. (a)  The executive director shall
43-12    charge and collect the fees prescribed by law.  The executive
43-13    director shall make a record of fees prescribed when due and shall
43-14    render an account to the person charged with the fees.  Each fee is
43-15    a separate charge and is in addition to other fees unless provided
43-16    otherwise.  Except as otherwise provided, a fee assessed and
43-17    collected under this section shall be deposited to the credit of
43-18    the water resource management account.
43-19                (1)  Notwithstanding other provisions, the commission
43-20    by rule may establish due dates, schedules, and procedures for
43-21    assessment, collection, and remittance of fees due the commission
43-22    to ensure the cost-effective administration of revenue collection
43-23    and cash management programs.
43-24                (2)  Notwithstanding other provisions, the commission
43-25    by rule shall establish uniform and consistent requirements for the
43-26    assessment of penalties and interest for late payment of fees owed
43-27    the state under the commission's jurisdiction.  Penalties and
 44-1    interest established under this section shall not exceed rates
 44-2    established for delinquent taxes under Sections 111.060 and
 44-3    111.061, Tax Code.
 44-4          (b)  Except as otherwise provided by law, the fee for filing
 44-5    an application or petition is $100 plus the cost of any required
 44-6    notice.  The fee for a by-pass permit shall be set by the
 44-7    commission at a reasonable amount to recover costs, but not less
 44-8    than $100.
 44-9          (c)  The fee for filing a water permit application is $100
44-10    plus the cost of required notice.
44-11          (d)  The fee for filing an application for fixing or
44-12    adjusting rates is $100 plus the cost of required notice.
44-13          (e)  A person who files with the commission a petition for
44-14    the creation of a water district or addition of sewage and drainage
44-15    powers or a resolution for a water district conversion must pay a
44-16    one-time nonrefundable application fee.  The commission by rule may
44-17    set the application fee in an amount not to exceed the costs of
44-18    reviewing and processing the application, plus the cost of required
44-19    notice.  This fee is the only fee that the commission may charge
44-20    with regard to the processing of an application for creation of a
44-21    water district, addition of sewage or drainage powers, or
44-22    conversion under this code.
44-23          (f)  A person who files a bond issue application with the
44-24    commission must pay an application fee set by the commission.  The
44-25    commission by rule may set the application fee in an amount not to
44-26    exceed the costs of reviewing and processing the application, plus
44-27    the cost of required notice.  If the bonds are approved by the
 45-1    commission, the seller shall pay to the commission a percentage of
 45-2    the bond proceeds not later than the seventh business day after
 45-3    receipt of the bond proceeds.  The commission by rule may set the
 45-4    percentage of the proceeds in an amount not to exceed 0.25 percent
 45-5    of the principal amount of the bonds actually issued. Proceeds of
 45-6    the fees shall be used to supplement any other funds available for
 45-7    paying expenses of the commission in supervising the various bond
 45-8    and construction activities of the districts filing the
 45-9    applications.
45-10          (g)  The fee for recording an instrument in the office of the
45-11    commission is $1.25 per page.
45-12          (h)  The fee for the use of water for irrigation is 50 cents
45-13    per acre to be irrigated.
45-14          (i)  The fee for impounding water, except under Section
45-15    11.142 of this code, is 50 cents per acre-foot of storage, based on
45-16    the total holding capacity of the reservoir at normal operating
45-17    level.
45-18          (j)  The fee for other uses of water not specifically named
45-19    in this section is $1 per acre-foot, except that no political
45-20    subdivision may be required to pay fees to use water for recharge
45-21    of underground freshwater-bearing sands and aquifers or for
45-22    abatement of natural pollution.
45-23          (k)  A fee charged under Subsections (h) through (j) of this
45-24    section for one use of water under a permit from the commission may
45-25    not exceed $50,000. The fee for each additional use of water under
45-26    a permit for which the maximum fee is paid may not exceed $10,000.
45-27          (l)  The fees prescribed by Subsections (h) through (j) of
 46-1    this section are one-time fees, payable when the application for an
 46-2    appropriation is made.   However, if the total fee for a permit
 46-3    exceeds $1,000, the applicant shall pay one-half of the fee when
 46-4    the application is filed and one-half within 180 days after notice
 46-5    is mailed to him that the permit is granted.  If the applicant does
 46-6    not pay all of the amount owed before beginning to use water under
 46-7    the permit, the permit is annulled.
 46-8          (m)  If a permit is annulled, the matter reverts to the
 46-9    status of a pending, filed application and, on the payment of use
46-10    fees as provided by Subsections (h) through (l) of this section
46-11    together with sufficient postage fees for mailing notice of
46-12    hearing, the commission shall set the application for hearing and
46-13    proceed as provided by this code.
46-14          (n)(1)  Each provider of potable water or sewer utility
46-15    service shall collect a regulatory assessment from each retail
46-16    customer as follows:
46-17                      (A)  A public utility as defined in Section
46-18    13.002 of this code shall collect from each retail customer a
46-19    regulatory assessment equal to one percent of the charge for retail
46-20    water or sewer service.
46-21                      (B)  A water supply or sewer service corporation
46-22    as defined in Section 13.002 of this code shall collect from each
46-23    retail customer a regulatory assessment equal to one-half of one
46-24    percent of the charge for retail water or sewer service.
46-25                      (C)  A district as defined in Section 49.001 of
46-26    this code that provides potable water or sewer utility service to
46-27    retail customers shall collect from each retail customer a
 47-1    regulatory assessment equal to one-half of one percent of the
 47-2    charge for retail water or sewer service.
 47-3                (2)  The regulatory assessment may be listed on the
 47-4    customer's bill as a separate item and shall be collected in
 47-5    addition to other charges for utility services.
 47-6                (3)  The commission shall use the assessments collected
 47-7    under this subsection solely to pay costs and expenses incurred by
 47-8    the commission in the regulation of districts, water supply or
 47-9    sewer service corporations, and public utilities under Chapter 13,
47-10    Water Code.
47-11                (4)  The commission shall annually use a portion of the
47-12    assessments to provide on-site technical assistance and training to
47-13    public utilities, water supply or sewer service corporations, and
47-14    districts.  The commission shall contract with others to provide
47-15    the services.
47-16                (5)  The commission by rule may establish due dates,
47-17    collection procedures, and penalties for late payment related to
47-18    regulatory assessments under this subsection.  The executive
47-19    director shall collect all assessments from the utility service
47-20    providers.
47-21                (6)  The commission shall assess a penalty against a
47-22    municipality with a population of more than 1.5 million that does
47-23    not provide municipal water and sewer services in an annexed area
47-24    in accordance with Section 43.0565, Local Government Code.  A
47-25    penalty assessed under this paragraph shall be not more than $1,000
47-26    for each day the services are not provided after March 1, 1998, for
47-27    areas annexed before January 1, 1993, or not provided within 4 1/2
 48-1    years after the effective date of the annexation for areas annexed
 48-2    on or after January 1, 1993.  A penalty collected under this
 48-3    paragraph shall be deposited to the credit of the water resource
 48-4    management account to be used to provide water and sewer service to
 48-5    residents of the city.
 48-6                (7)  The regulatory assessment does not apply to water
 48-7    that has not been treated for the purpose of human consumption.
 48-8          (o)  A fee imposed under Subsection (j) of this section for
 48-9    the use of saline tidal water for industrial processes shall be $1
48-10    per acre-foot of water diverted for the industrial process, not to
48-11    exceed a total fee of $5,000.
48-12          SECTION 3.03. New Subchapter P, Chapter 5, Water Code, is
48-13    amended by adding Sections 5.702-5.707 to read as follows:
48-14          Sec. 5.702.  PAYMENT OF FEES REQUIRED WHEN DUE. (a)  A fee
48-15    due the commission under this code or the Health and Safety Code
48-16    shall be paid on the date the fee is due, regardless of whether the
48-17    fee is billed by the commission to the person required to pay the
48-18    fee or is calculated and paid to the commission by the person
48-19    required to pay the fee.
48-20          (b)  A person required to pay a fee to the commission may not
48-21    dispute the assessment of or amount of a fee before the fee has
48-22    been paid in full.
48-23          Sec. 5.703.  FEE ADJUSTMENTS. (a)  The commission may not
48-24    consider adjusting the amount of a fee due the commission under
48-25    this code or the Health and Safety Code:
48-26                (1)  before the fee has been paid in full; or
48-27                (2)  if the request for adjustment is received after
 49-1    the first anniversary of the date on which the fee was paid in
 49-2    full.
 49-3          (b)  A person who pays an amount that exceeds the amount of
 49-4    the fee due because the commission incorrectly calculated the fee
 49-5    or the person made a duplicate payment may request a refund of the
 49-6    excess amount paid before the fourth anniversary of the date on
 49-7    which the excess amount was paid.
 49-8          (c)  A request for a refund or credit in an amount that
 49-9    exceeds $5,000 shall be forwarded for approval to the commission
49-10    fee audit staff, together with an explanation of the grounds for
49-11    the requested refund or credit.  Approval of a refund or credit
49-12    does not prevent the fee audit staff from conducting a subsequent
49-13    audit of the person for whom the refund or credit was approved.
49-14          Sec. 5.704.  NOTICE OF CHANGE IN PAYMENT PROCEDURE. The
49-15    commission shall promptly notify each person required to pay a
49-16    commission fee under this code or the Health and Safety Code of any
49-17    change in fee payment procedures.
49-18          Sec. 5.705.  NOTICE OF VIOLATION. (a)  The commission may
49-19    issue a notice of violation to a person required to pay a
49-20    commission fee under this code or the Health and Safety Code for
49-21    knowingly violating reporting requirements or calculating the fee
49-22    in an amount less than the amount actually due.
49-23          (b)  The executive director may not modify audit findings
49-24    reported by a commission fee auditor.
49-25          Sec. 5.706.  PENALTIES AND INTEREST ON DELINQUENT FEES. (a)
49-26    Except as otherwise provided by law, the commission may collect,
49-27    for a delinquent fee due the commission under this code or the
 50-1    Health and Safety Code:
 50-2                (1)  a penalty in an amount equal to five percent of
 50-3    the amount of the fee due, if the fee is not paid on or before the
 50-4    day on which the fee is due; and
 50-5                (2)  an additional penalty in an amount equal to five
 50-6    percent of the amount due, if the fee is not paid on or before the
 50-7    30th day after the day on which the fee was due.
 50-8          (b)  Unless otherwise required by law interest accrues,
 50-9    beginning on the 61st day after the date on which the fee was due,
50-10    on the total amount of fee and penalties that have not been paid on
50-11    or before the 61st day after the date on which the fee was due.
50-12    The yearly interest rate is the rate of interest established for
50-13    delinquent taxes under Section 111.060, Tax Code.
50-14          (c)  The executive director may modify a penalty or interest
50-15    on a fee and penalties authorized by this section if the executive
50-16    director provides a written explanation showing good cause for the
50-17    modification.
50-18          (d)  Penalties and interest collected by the commission under
50-19    this section or under other law, unless that law otherwise
50-20    provides, shall be deposited to the credit of the fund or account
50-21    to which the fee is required to be deposited.
50-22          Sec. 5.707.  TRANSFERABILITY OF FUNDS DERIVED FROM FEES.
50-23    Notwithstanding any law restricting the use of a fee collected by
50-24    the commission and to the extent consistent with federal law and
50-25    authorized by the General Appropriations Act, the commission may
50-26    transfer a percentage of fee revenue dedicated to one commission
50-27    activity to one or more other commission activities.
 51-1                 ARTICLE 4.  PERFORMANCE-BASED REGULATION
 51-2          SECTION 4.01. Chapter 5, Water Code, is amended by adding
 51-3    Subchapter Q to read as follows:
 51-4                SUBCHAPTER Q.  PERFORMANCE-BASED REGULATION
 51-5          Sec. 5.751.  DEFINITIONS. In this subchapter:
 51-6                (1)  "Flexible permitting" means the issuance of a
 51-7    flexible permit that allows for physical or operational changes as
 51-8    provided by commission rule.
 51-9                (2)  "Innovative regulatory program" includes a program
51-10    required by statute or developed by commission rule.
51-11                (3)  "Permit" includes a license, certificate,
51-12    registration, approval, or other form of authorization issued by
51-13    the commission under this code or the Health and Safety Code.
51-14          Sec. 5.752.  REGULATORY TIERS AND PERFORMANCE INCENTIVES. (a)
51-15    In this section, "environmental regulations" include:
51-16                (1)  federal and state laws that regulate environmental
51-17    matters;
51-18                (2)  rules adopted or orders issued under federal or
51-19    state law; and
51-20                (3)  terms of a permit or other authorization issued by
51-21    the commission or another agency with environmental regulatory
51-22    authority.
51-23          (b)  The commission shall develop a strategically directed
51-24    regulatory structure based on incentives and compliance
51-25    performance.  To implement this regulatory structure, the
51-26    commission by rule shall establish regulatory tiers and performance
51-27    incentives in which relative levels of compliance with
 52-1    environmental regulations are used to determine eligibility for
 52-2    participation in innovative regulatory programs.
 52-3          (c)  The rules must define the regulatory tiers in a manner
 52-4    adequate to distinguish among:
 52-5                (1)  poor performers, or regulated entities with a
 52-6    continual or pervasive disregard of environmental regulations;
 52-7                (2)  average performers, or regulated entities that
 52-8    generally comply with environmental regulations; and
 52-9                (3)  high performers, or regulated entities that have
52-10    an above-average compliance record and in addition voluntarily
52-11    implement environmentally sound practices beyond those required by
52-12    environmental regulations.
52-13          (d)  The rules must prescribe the programs and incentives
52-14    available to regulated entities within each regulatory tier and
52-15    must be revised as necessary to include new programs  or incentives
52-16    as they are developed.
52-17          (e)  The commission shall determine a regulated entity's
52-18    compliance history, for purposes of eligibility to participate in
52-19    an innovative regulatory program or incentive, according to the
52-20    method developed under Section 5.754.
52-21          Sec. 5.753.  COORDINATION OF INNOVATIVE REGULATORY PROGRAMS
52-22    AND INCENTIVES. (a)  The commission shall designate a single point
52-23    of contact within the agency to coordinate all innovative
52-24    regulatory programs and incentives.
52-25          (b)  The designated coordinator shall:
52-26                (1)  inventory, coordinate, and market all innovative
52-27    regulatory programs and incentives;
 53-1                (2)  provide information and technical assistance to
 53-2    regulated entities participating in or interested in participating
 53-3    in those programs and incentives; and
 53-4                (3)  work with the pollution prevention advisory
 53-5    committee to assist the commission in integrating the concepts of
 53-6    regulatory innovation and incentive- and performance-based
 53-7    regulation into its daily operations, including:
 53-8                      (A)  program administration;
 53-9                      (B)  strategic planning; and
53-10                      (C)  staff training.
53-11          Sec. 5.754.  COMPONENTS OF AND STANDARDS FOR EVALUATING
53-12    COMPLIANCE HISTORY. (a)  The commission by rule shall develop a
53-13    single set of components of and standards for evaluating the
53-14    compliance history of an applicant or permit holder and shall
53-15    consistently apply those components and standards in evaluating
53-16    compliance history in all permitting and enforcement matters under
53-17    the commission's jurisdiction.
53-18          (b)  In developing the components and standards required by
53-19    Subsection (a), the commission:
53-20                (1)  shall include, among other factors to be
53-21    considered:
53-22                      (A)  notices of violations and enforcement
53-23    actions, state and federal enforcement orders, court judgments, and
53-24    criminal convictions;
53-25                      (B)  a determination of whether a violation is
53-26    significant or minor, according to commission rules;
53-27                      (C)  the period to be considered when determining
 54-1    a regulated entity's compliance history; and
 54-2                      (D)  inclusion of a regulated entity's compliance
 54-3    history for similar operations in other jurisdictions, in addition
 54-4    to the entity's past performance in this state; and
 54-5                (2)  shall specify that a repeat violator is an entity
 54-6    that has more than one violation of the same or similar type within
 54-7    the period established by the commission under Subsection
 54-8    (b)(1)(C).
 54-9          (c)  The commission shall consider changes in ownership when
54-10    tracking the compliance history of a regulated entity.
54-11          Sec. 5.755.  REPORTS. (a)  The commission shall collect data
54-12    on:
54-13                (1)  the results of inspections conducted by the
54-14    commission;
54-15                (2)  the number and percentage of all violations
54-16    committed by repeat offenders;
54-17                (3)  the number and percentage of enforcement orders
54-18    issued by the commission that are issued to entities that have been
54-19    the subject of a previous enforcement order; and
54-20                (4)  whether the violations are significant or minor,
54-21    as defined by commission rule.
54-22          (b)  The commission annually shall prepare a comparative
54-23    analysis of data evaluating the performance, over time, of the
54-24    commission and of entities regulated by the commission.
54-25          (c)  The commission must include in the annual enforcement
54-26    report required by Section 5.123, as added by Chapters 304 and
54-27    1082, Acts of the 75th Legislature, Regular Session, 1997, the
 55-1    comparative performance analysis required by Subsection (b),
 55-2    organized by region and by regulated medium.
 55-3          Sec. 5.756.  PERFORMANCE ASSESSMENT FOR PROGRAM ELIGIBILITY.
 55-4    (a)  The commission by rule shall develop a method of performance
 55-5    assessment that differentiates persons regulated by the commission
 55-6    according to their compliance histories.
 55-7          (b)  The commission shall use the method of performance
 55-8    assessment developed under Subsection (a) in conjunction with the
 55-9    regulatory structure developed under Section 5.752 to determine
55-10    eligibility for participation in incentive-based programs and other
55-11    innovative regulatory programs developed by the commission.
55-12          (c)  The commission by rule shall establish methods of
55-13    assessing the performance of regulated entities not routinely
55-14    inspected for compliance.  The methods may include requiring a
55-15    compliance inspection to determine an entity's eligibility for
55-16    participation in a program or incentive that requires an
55-17    above-average degree of compliance.
55-18          (d)  Commission rules shall provide that a regulated person
55-19    with a compliance history that is unacceptable under this section
55-20    and Section 5.752 is not eligible to participate in innovative
55-21    regulatory programs or incentives.
55-22          Sec. 5.757.  PERFORMANCE ASSESSMENT FOR PERMITTING AND
55-23    ENFORCEMENT DECISIONS. The commission by rule shall develop
55-24    guidelines for the use of compliance history in commission
55-25    decisions regarding:
55-26                (1)  the issuance, renewal, or denial of a permit or
55-27    other authorization issued by the commission; and
 56-1                (2)  enforcement matters under the commission's
 56-2    jurisdiction.
 56-3          Sec. 5.758.  ANNOUNCED INSPECTIONS. (a)  The commission may
 56-4    not announce an inspection of a facility owned or operated by a
 56-5    person regulated by the commission unless the person has
 56-6    established a good compliance history that qualifies the person for
 56-7    announced inspections under the procedures and standards developed
 56-8    under Sections 5.752 and 5.756.
 56-9          (b)  The commission shall track whether inspections are
56-10    announced or unannounced and shall include the information in the
56-11    report required by Section 5.123, as added by Chapters 304 and
56-12    1082, Acts of the 75th Legislature, Regular Session, 1997.
56-13          Sec. 5.759.  ELIGIBILITY FOR FLEXIBLE PERMITTING. A regulated
56-14    entity is not eligible for flexible permitting unless the entity
56-15    has established a better than average compliance history in
56-16    comparison with entities operating under an ordinary permit.
56-17          SECTION 4.02. Section 5.123, Water Code, as added by Chapter
56-18    1203, Acts of the 75th Legislature, Regular Session, 1997, is
56-19    transferred to new Subchapter Q, Chapter 5, Water Code,
56-20    redesignated as Section 5.760, and amended to read as follows:
56-21          Sec. 5.760 [5.123].  REGULATORY FLEXIBILITY. (a)  The
56-22    commission by order may exempt an applicant from a requirement of a
56-23    statute or commission rule regarding the control or abatement of
56-24    pollution if the applicant proposes to control or abate pollution
56-25    by an alternative method or by applying an alternative standard
56-26    that is:
56-27                (1)  more [at least as] protective of the environment
 57-1    and the public health than [as] the method or standard prescribed
 57-2    by the statute or commission rule that would otherwise apply; and
 57-3                (2)  not inconsistent with federal law.
 57-4          (b)  The commission may not exempt an applicant under this
 57-5    section unless the applicant can present to the commission
 57-6    documented evidence of benefits to environmental quality that will
 57-7    result from the project the applicant proposes.
 57-8          (c)  The commission by rule shall specify the procedure for
 57-9    obtaining an exemption under this section.  The rules must provide
57-10    for public notice and for public participation in a proceeding
57-11    involving an application for an exemption under this section.
57-12          (d) [(c)]  The commission's order must provide a specific
57-13    description of the alternative method or standard and condition the
57-14    exemption on compliance with the method or standard as the order
57-15    prescribes.
57-16          (e) [(d)]  The commission by rule may establish a reasonable
57-17    fee for applying for an exemption under this section.
57-18          (f) [(e)]  A violation of an order issued under this section
57-19    is punishable as if it were a violation of the statute or rule from
57-20    which the order grants an exemption.
57-21          (g) [(f)]  A permit may satisfy a requirement to demonstrate
57-22    need by showing need on a regional basis considering economic
57-23    impacts.
57-24          (h) [(g)]  This section does not authorize exemptions to
57-25    statutes or regulations for storing, handling, processing, or
57-26    disposing of low-level radioactive materials.
57-27          (i) [(h)]  In implementing the program of regulatory
 58-1    flexibility authorized by this section, the commission shall:
 58-2                (1)  market the program to businesses in the state
 58-3    through all available appropriate media;
 58-4                (2)  endorse alternative methods that will clearly
 58-5    benefit the environment and impose the least onerous restrictions
 58-6    on business;
 58-7                (3)  fix and enforce environmental standards, allowing
 58-8    businesses flexibility in meeting the standards in a manner that
 58-9    clearly enhances environmental outcomes; and
58-10                (4)  work to achieve consistent and predictable results
58-11    for the regulated community and shorter waits for permit issuance.
58-12          SECTION 4.03. Section 7.067(a), Water Code, is amended to
58-13    read as follows:
58-14          (a)  The commission may compromise, modify, or remit, with or
58-15    without conditions, an administrative penalty imposed under this
58-16    subchapter.  In determining the appropriate amount of a penalty for
58-17    settlement of an administrative enforcement matter, the commission
58-18    may consider a respondent's willingness to contribute to
58-19    supplemental environmental projects that are approved by the
58-20    commission, giving preference to projects that benefit the
58-21    community in which the alleged violation occurred.  The commission
58-22    may approve a supplemental environmental project with activities in
58-23    territory of the United Mexican States if the project substantially
58-24    benefits territory in this state in a manner described by
58-25    Subsection (b).  The commission may not approve a project that is
58-26    necessary to bring a respondent into compliance with environmental
58-27    laws, [or] that is necessary to remediate environmental harm caused
 59-1    by the respondent's alleged violation, or that the respondent has
 59-2    already agreed to perform under a preexisting agreement with a
 59-3    governmental agency.
 59-4          SECTION 4.04. Section 361.0215, Health and Safety Code, is
 59-5    amended to read as follows:
 59-6          Sec. 361.0215.  POLLUTION PREVENTION [WASTE REDUCTION]
 59-7    ADVISORY COMMITTEE. (a)  The pollution prevention [waste reduction]
 59-8    advisory committee is composed of nine members with a balanced
 59-9    representation of environmental and public interest groups and the
59-10    regulated community.
59-11          (b)  The committee shall advise the commission and
59-12    interagency coordination council on:
59-13                (1)  the appropriate organization of state agencies and
59-14    the financial and technical resources required to aid the state in
59-15    its efforts to promote waste reduction and minimization;
59-16                (2)  the development of public awareness programs to
59-17    educate citizens about hazardous waste and the appropriate disposal
59-18    of hazardous waste and hazardous materials that are used and
59-19    collected by households;
59-20                (3)  the provision of technical assistance to local
59-21    governments for the development of waste management strategies
59-22    designed to assist small quantity generators of hazardous waste;
59-23    and
59-24                (4)  other possible programs to more effectively
59-25    implement the state's hierarchy of preferred waste management
59-26    technologies as set forth in Section 361.023(a).
59-27          (c)  The committee shall advise the commission on the
 60-1    creation and implementation of an incentive- and performance-based
 60-2    structure for the regulation of air and water quality and solid
 60-3    waste management as set out in Section 5.752, Water Code.
 60-4          (d)  The committee shall report quarterly to the commission
 60-5    on its activities, including suggestions or proposals for future
 60-6    activities and other matters the committee considers important.
 60-7          SECTION 4.05. Section 361.088, Health and Safety Code, is
 60-8    amended by adding Subsection (g) to read as follows:
 60-9          (g)  The commission shall review a permit issued under this
60-10    chapter every five to seven years to assess the license holder's
60-11    compliance history.
60-12          SECTION 4.06. Subchapter B, Chapter 382, Health and Safety
60-13    Code, is amended by adding Sections 382.0215 and 382.0216 to read
60-14    as follows:
60-15          Sec. 382.0215.  ASSESSMENT OF EMISSIONS DUE TO ACCIDENTS,
60-16    UPSETS, OR MAINTENANCE. (a)  In this section, "emissions event"
60-17    means an emission or series of emissions of air pollutants
60-18    resulting from accident, upset, or maintenance.
60-19          (b)  The commission shall centrally track all emissions
60-20    events.  Information collected shall include:
60-21                (1)  the name of the license holder for the reporting
60-22    facility;
60-23                (2)  the date and time the emissions event occurred;
60-24                (3)  the duration of the emissions event;
60-25                (4)  the type and estimated amount of pollutants
60-26    emitted as a result of the emissions event;
60-27                (5)  the reason for the emissions event;
 61-1                (6)  any exemptions, inspections, or enforcement
 61-2    actions taken by the commission in response to the emissions event;
 61-3    and
 61-4                (7)  the number of emissions events occurring in each
 61-5    commission region.
 61-6          (c)  The commission annually shall assess the information
 61-7    collected under this section and shall include the assessment in
 61-8    the report required by Section 5.123, Water Code, as added by
 61-9    Chapters 304 and 1082, Acts of the 75th Legislature, Regular
61-10    Session, 1997.
61-11          Sec. 382.0216.  REGULATION OF EMISSIONS EVENTS. (a)  The
61-12    commission shall evaluate persons regulated under this chapter that
61-13    have high numbers of emissions events and by rule shall limit the
61-14    number of emissions events that may be exempted from enforcement
61-15    action.
61-16          (b)  The rules shall:
61-17                (1)  set the allowable number of emissions events for
61-18    each category of regulated facility that may occur annually; and
61-19                (2)  establish exemptions for emissions events that
61-20    occur for bona fide safety reasons.
61-21          (c)  In adopting rules under this section, the commission
61-22    shall consider, among other matters:
61-23                (1)  the frequency of emissions events;
61-24                (2)  the exact source of an emissions event at the
61-25    facility at which it occurred;
61-26                (3)  the magnitude of the emissions event; and
61-27                (4)  the volume and toxicity of the emissions resulting
 62-1    from the emissions event.
 62-2          (d)  The commission may enforce rules adopted under this
 62-3    section by emergency order under Subchapter L, Chapter 5, Water
 62-4    Code, and may take or may order the owner or operator of the
 62-5    regulated facility that is the source of the emissions event to
 62-6    take any necessary corrective action.
 62-7      ARTICLE 5.  ACCREDITATION OF ENVIRONMENTAL TESTING LABORATORIES
 62-8          SECTION 5.01. Chapter 421, Health and Safety Code, as added
 62-9    by Chapter 447, Acts of the 76th Legislature, Regular Session,
62-10    1999, is transferred to Chapter 5, Water Code, redesignated as
62-11    Subchapter R, and amended to read as follows:
62-12               SUBCHAPTER R [CHAPTER 421].  ACCREDITATION OF
62-13                    ENVIRONMENTAL TESTING LABORATORIES
62-14          Sec. 5.801 [421.001].  DEFINITIONS. In this subchapter,
62-15    "environmental [chapter:]
62-16                [(1)  "Board" means the Texas Board of Health.]
62-17                [(2)  "Department" means the Texas Department of
62-18    Health.]
62-19                [(3)  "Environmental] testing laboratory" means a
62-20    scientific laboratory that:
62-21                (1) [(A)]  performs analyses to determine the chemical,
62-22    molecular, or pathogenic components of drinking water, wastewater,
62-23    hazardous wastes, soil, or air for regulatory compliance purposes;
62-24    and
62-25                (2) [(B)]  is [either] a commercial laboratory, [or] an
62-26    environmental laboratory operated by the commission, or an
62-27    environmental laboratory that is required to be accredited under
 63-1    federal law.
 63-2          Sec. 5.802 [421.002].  ADMINISTRATION BY COMMISSION
 63-3    [DEPARTMENT]. The commission [department] shall adopt rules for the
 63-4    administration of [administer] the voluntary environmental testing
 63-5    laboratory accreditation program established by this chapter.  The
 63-6    program must be consistent with national accreditation standards
 63-7    approved by the National Environmental Laboratory Accreditation
 63-8    Conference.
 63-9          Sec. 5.803 [421.003].  APPLICATION; FEE. (a)  To be
63-10    accredited under the accreditation program adopted under this
63-11    subchapter [chapter], an environmental testing laboratory must
63-12    submit an application to the commission [department] on a form
63-13    prescribed by the commission [department], accompanied by the
63-14    accreditation fee. The application must contain the information
63-15    that the commission [department] requires.
63-16          (b)  The commission by rule  [board] shall establish a
63-17    schedule of reasonable [an] accreditation fees designed to recover
63-18    the costs of the accreditation program, including the costs
63-19    associated with:
63-20                (1)  application review;
63-21                (2)  initial, routine, and follow-up inspections by the
63-22    commission; and
63-23                (3)  preparation of reports [fee in an amount
63-24    sufficient to defray the cost of administering this chapter].
63-25          Sec. 5.804 [421.004].  ISSUANCE OF ACCREDITATION;
63-26    RECIPROCITY. (a)  The commission [department] may accredit an
63-27    environmental testing laboratory that complies with the commission
 64-1    requirements established under this subchapter [chapter].
 64-2          (b)  The commission [board] by rule may provide for the
 64-3    accreditation of an environmental testing laboratory that is
 64-4    accredited or licensed in [by] another state by an authority that
 64-5    is approved by the National Environmental Laboratory Accreditation
 64-6    Conference.
 64-7          Sec. 5.805 [421.005].  RULES; MINIMUM STANDARDS. The
 64-8    commission [board] shall adopt rules to implement this subchapter
 64-9    [chapter] and minimum performance and quality assurance standards
64-10    for accreditation of an environmental testing laboratory.
64-11          Sec. 5.806 [421.006].  DISCIPLINE. After notice and an
64-12    opportunity for hearing, the commission [department] may suspend or
64-13    revoke the accreditation of an environmental testing laboratory
64-14    that does not comply with the minimum performance and quality
64-15    assurance standards established under this subchapter [chapter].
64-16          Sec. 5.807.  ENVIRONMENTAL TESTING LABORATORY ACCREDITATION
64-17    ACCOUNT. (a)  All fees collected under this subchapter shall be
64-18    deposited to the credit of the environmental testing laboratory
64-19    accreditation account and may be appropriated to the commission
64-20    only for paying the costs of the accreditation program.
64-21          (b)  Any balance in the account in excess of $1,000 at the
64-22    end of a fiscal year reverts to the general revenue fund.
64-23         ARTICLE 6.  CERTIFICATION OF WATER TREATMENT SPECIALISTS
64-24          SECTION 6.01. Section 3A, The Plumbing License Law (Article
64-25    6243-101, Vernon's Texas Civil Statutes), is transferred to Chapter
64-26    341, Health and Safety Code, redesignated as Subchapter G, Chapter
64-27    341, and amended to read as follows:
 65-1        SUBCHAPTER G.  CERTIFICATION OF WATER TREATMENT SPECIALISTS
 65-2          Sec. 341.101 [Sec. 3A.  CERTIFICATION RELATING TO RESIDENTIAL
 65-3    WATER TREATMENT FACILITIES].  DEFINITIONS. In this subchapter:
 65-4                (1)  "Commission" means the Texas Natural Resource
 65-5    Conservation Commission.
 65-6                (2)  "Installation of water treatment appliances"
 65-7    includes connecting the appliances to all necessary utility
 65-8    connections in residential, commercial, or industrial facilities.
 65-9                (3)  "Water treatment" means a business conducted under
65-10    contract that requires experience in the analysis of water,
65-11    including the ability to determine how to treat influent and
65-12    effluent water, to alter or purify water, and to add or remove a
65-13    mineral, chemical, or bacterial content or substance.  The term
65-14    also includes the installation and service of potable water
65-15    treatment equipment in public or private water systems and making
65-16    connections necessary to complete installation of a water treatment
65-17    system.
65-18                (4)  "Water treatment equipment" includes appliances
65-19    used to alter or purify water or to alter a mineral, chemical, or
65-20    bacterial content or substance.
65-21          Sec. 341.102.  WATER TREATMENT SPECIALIST CERTIFICATION
65-22    PROGRAM. (a)  The commission by rule [Commissioner of Health or his
65-23    designee] shall establish a program to certify persons [as being]
65-24    qualified to install, exchange, service [for the installation,
65-25    exchange, servicing], and repair [of] residential, commercial, or
65-26    industrial water treatment equipment and appliances [facilities as
65-27    defined by Subsection (g) of Section 2 of this Act].
 66-1          (b)  The rules must establish:
 66-2                (1)  [Texas Board of Health shall set] standards for
 66-3    certification to ensure the public health and to protect the public
 66-4    from unqualified persons engaging in activities relating to water
 66-5    treatment;
 66-6                (2)  classes of certification;
 66-7                (3)  duration of certification; and
 66-8                (4)  reasonable annual certification fees in an amount
 66-9    sufficient to pay the administrative costs of the certification
66-10    program, but not to exceed $150 a year for any class of
66-11    certification.
66-12          Sec. 341.103.  CERTIFICATION REQUIRED. A person may not
66-13    engage in water treatment unless the person first obtains a
66-14    certificate from the commission under the program established under
66-15    this subchapter.
66-16          Sec. 341.104.  APPLICATION FOR CERTIFICATION. A person
66-17    desiring to obtain certification under the program established
66-18    under this subchapter shall file with the commission:
66-19                (1)  an application in the form prescribed by the
66-20    commission and containing the information required by the
66-21    commission; and
66-22                (2)  the appropriate certification fee.
66-23          Sec. 341.105.  ISSUANCE OF CERTIFICATE. (a)  [Nothing in this
66-24    section shall be construed to require that persons licensed
66-25    pursuant to this Act are subject to certification under this
66-26    section.]
66-27          [(b)  Before a certificate is issued or renewed under this
 67-1    section, an applicant or holder of a certificate shall be required
 67-2    to pay a fee of $10 a year.]  On receipt of an application that
 67-3    meets commission requirements and the required fee, the commission
 67-4    [Texas Department of Health] shall issue to a [qualified] person
 67-5    who meets commission standards for certification a certificate
 67-6    stating that the person is qualified to install, exchange, service
 67-7    [for the installation, exchange, servicing], and repair [of]
 67-8    residential, commercial, or industrial water treatment facilities.
 67-9          (b)  [The Texas Board of Health shall adopt rules
67-10    establishing classes of certificates, duration of certificates, and
67-11    fees.]
67-12          [(c)]  All fees received by the commission [Texas Department
67-13    of Health] under this section shall be deposited in the State
67-14    Treasury to the credit of the General Revenue Fund.
67-15            ARTICLE 7.  REGISTRATION OF IRRIGATORS AND ON-SITE
67-16                     SEWAGE DISPOSAL SYSTEM INSTALLERS
67-17          SECTION 7.01. Section 34.008(a), Water Code, is amended to
67-18    read as follows:
67-19          (a)  The commission may waive any prerequisite [certify] for
67-20    obtaining registration for [without examination] an applicant who
67-21    is registered as a licensed irrigator or licensed installer by [in]
67-22    another jurisdiction with which this state has a reciprocity
67-23    agreement.  The commission may make an agreement, subject to the
67-24    approval of the governor, with another state to allow for
67-25    registration by reciprocity [state or country that has requirements
67-26    for registration that are at least substantially equivalent to the
67-27    requirements of this state and that extends the same privilege of
 68-1    reciprocity to licensed irrigators or licensed installers
 68-2    registered in this state].
 68-3          SECTION 7.02. Section 34.009(f), Water Code, is amended to
 68-4    read as follows:
 68-5          (f)  The commission by rule may adopt a system under which
 68-6    certificates of registration expire on various dates during the
 68-7    year.  For the year in which the expiration date is changed, the
 68-8    commission shall prorate registration [renewal] fees [payable on
 68-9    August 31 shall be prorated] on a monthly basis so that each
68-10    registrant pays [will pay] only that portion of the registration
68-11    fee that is allocable to the number of months during which the
68-12    registration is valid.  On renewal of the registration on the new
68-13    expiration date, the total registration renewal fee is due.
68-14          SECTION 7.03. Section 366.076, Health and Safety Code, is
68-15    amended to read as follows:
68-16          Sec. 366.076.  REGISTRATION RENEWAL. The commission by rule
68-17    may adopt a system under which registrations expire on various
68-18    dates during the year.  For each year in which the registration
68-19    expiration date is changed, the commission shall prorate
68-20    registration fees on a monthly basis so that each registrant pays
68-21    only that portion of the registration fee that is allocable to the
68-22    number of months during which the registration is valid.  On
68-23    renewal of the registration on the new expiration date, the total
68-24    registration renewal fee is payable [provide for periodic renewal
68-25    of registrations].
68-26                     ARTICLE 8.  CONFORMING AMENDMENTS
68-27          SECTION 8.01. Section 5.174(a), Water Code, is amended to
 69-1    read as follows:
 69-2          (a)  Except as otherwise specifically provided by this code
 69-3    and subject to the specific limitations provided by this code, on
 69-4    application of any person the commission shall furnish certified or
 69-5    other copies of any proceeding or other official record or of any
 69-6    map, paper, or document filed with the commission.  A certified
 69-7    copy with the seal of the commission and the signature of the
 69-8    presiding officer [chairman] of the commission or the executive
 69-9    director or chief clerk is admissible as evidence in any court or
69-10    administrative proceeding.
69-11          SECTION 8.02. Section 11.085, Water Code, as it exists after
69-12    the transfer and redesignation of Subsections (f)-(i) by this Act,
69-13    is amended by amending Subsection (d) and relettering Subsections
69-14    (j)-(v) as Subsections (f)-(r) to read as follows:
69-15          (d)  Prior to taking action on an application for an
69-16    interbasin transfer, the commission shall conduct at least one
69-17    public meeting to receive comments in both the basin of origin of
69-18    the water proposed for transfer and the basin receiving water from
69-19    the proposed transfer.  Notice shall be provided pursuant to
69-20    Section 5.652 [Subsection (g) of this section].  Any person may
69-21    present relevant information and data at the meeting on the
69-22    criteria which the commission is to consider related to the
69-23    interbasin transfer.
69-24          (f) [(j)]  In addition to other requirements of this code
69-25    relating to the review of and action on an application for a new
69-26    water right or amended permit, certified filing, or certificate of
69-27    adjudication, the commission shall:
 70-1                (1)  request review and comment on an application for
 70-2    an interbasin transfer from each county judge of a county located
 70-3    in whole or in part in the basin of origin.  A county judge should
 70-4    make comment only after seeking advice from the county
 70-5    commissioners court; and
 70-6                (2)  give consideration to the comments of each county
 70-7    judge of a county located in whole or in part in the basin of
 70-8    origin prior to taking action on an application for an interbasin
 70-9    transfer.
70-10          (g) [(k)]  In addition to other requirements of this code
70-11    relating to the review of and action on an application for a new
70-12    water right or amended permit, certified filing, or certificate of
70-13    adjudication, the commission shall weigh the effects of the
70-14    proposed transfer by considering:
70-15                (1)  the need for the water in the basin of origin and
70-16    in the proposed receiving basin based on the period for which the
70-17    water supply is requested, but not to exceed 50 years;
70-18                (2)  factors identified in the applicable approved
70-19    regional water plans which address the following:
70-20                      (A)  the availability of feasible and practicable
70-21    alternative supplies in the receiving basin to the water proposed
70-22    for transfer;
70-23                      (B)  the amount and purposes of use in the
70-24    receiving basin for which water is needed;
70-25                      (C)  proposed methods and efforts by the
70-26    receiving basin to avoid waste and implement water conservation and
70-27    drought contingency measures;
 71-1                      (D)  proposed methods and efforts by the
 71-2    receiving basin to put the water proposed for transfer to
 71-3    beneficial use;
 71-4                      (E)  the projected economic impact that is
 71-5    reasonably expected to occur in each basin as a result of the
 71-6    transfer; and
 71-7                      (F)  the projected impacts of the proposed
 71-8    transfer that are reasonably expected to occur on existing water
 71-9    rights, instream uses, water quality, aquatic and riparian habitat,
71-10    and bays and estuaries that must be assessed under Sections 11.147,
71-11    11.150, and 11.152 of this code in each basin.  If the water sought
71-12    to be transferred is currently authorized to be used under an
71-13    existing permit, certified filing, or certificate of adjudication,
71-14    such impacts shall only be considered in relation to that portion
71-15    of the permit, certified filing, or certificate of adjudication
71-16    proposed for transfer and shall be based on historical uses of the
71-17    permit, certified filing, or certificate of adjudication for which
71-18    amendment is sought;
71-19                (3)  proposed mitigation or compensation, if any, to
71-20    the basin of origin by the applicant;
71-21                (4)  the continued need to use the water for the
71-22    purposes authorized under the existing permit, certified filing, or
71-23    certificate of adjudication, if an amendment to an existing water
71-24    right is sought; and
71-25                (5)  the information required to be submitted by the
71-26    applicant.
71-27          (h) [(l)]  The commission may grant, in whole or in part, an
 72-1    application for an interbasin transfer only to the extent that:
 72-2                (1)  the detriments to the basin of origin during the
 72-3    proposed transfer period are less than the benefits to the
 72-4    receiving basin during the proposed transfer period; and
 72-5                (2)  the applicant for the interbasin transfer has
 72-6    prepared a drought contingency plan and has developed and
 72-7    implemented a water conservation plan that will result in the
 72-8    highest practicable levels of water conservation and efficiency
 72-9    achievable within the jurisdiction of the applicant.
72-10          (i) [(m)]  The commission may grant new or amended water
72-11    rights under this section with or without specific terms or periods
72-12    of use and with specific conditions under which a transfer of water
72-13    may occur.
72-14          (j) [(n)]  If the transfer of water is based on a contractual
72-15    sale of water, the new water right or amended permit, certified
72-16    filing, or certificate of adjudication authorizing the transfer
72-17    shall contain a condition for a term or period not greater than the
72-18    contract term.
72-19          (k) [(o)]  The parties to a contract for an interbasin
72-20    transfer may include provisions for compensation and mitigation.
72-21    If the party from the basin of origin is a government entity, each
72-22    county judge of a county located in whole or in part in the basin
72-23    of origin may provide input on the appropriate compensation and
72-24    mitigation for the interbasin transfer.
72-25          (l) [(p)]  For the purposes of this section, a basin is
72-26    designated as provided in accordance with Section 16.051 of this
72-27    code.  A basin may not be redesignated in order to allow a transfer
 73-1    or diversion of water otherwise in violation of this section.
 73-2          (m) [(q)]  A person who takes or diverts water in violation
 73-3    of this section is guilty of a misdemeanor and upon conviction is
 73-4    punishable by a fine of not more than $1,000 or by confinement in
 73-5    the county jail for not more than six months.
 73-6          (n) [(r)]  A person commits a separate offense each day he
 73-7    continues to take or divert water in violation of this section.
 73-8          (o) [(s)]  Any proposed transfer of all or a portion of a
 73-9    water right under this section is junior in priority to water
73-10    rights granted before the time application for transfer is accepted
73-11    for filing.
73-12          (p) [(t)]  Any proposed transfer of all or a portion of a
73-13    water right under this section from a river basin in which two or
73-14    more river authorities or water districts created under Section 59,
73-15    Article XVI, Texas Constitution, have written agreements or permits
73-16    that provide for the coordinated operation of their respective
73-17    reservoirs to maximize the amount of water for beneficial use
73-18    within their respective water services areas shall be junior in
73-19    priority to water rights granted before the time application for
73-20    transfer is accepted for filing.
73-21          (q) [(u)]  An appropriator of water for municipal purposes in
73-22    the basin of origin may, at the appropriator's option, be a party
73-23    in any hearings under this section.
73-24          (r) [(v)]  The provisions of this section, except Subsection
73-25    (a), do not apply to:
73-26                (1)  a proposed transfer which in combination with any
73-27    existing transfers totals less than 3,000 acre-feet of water per
 74-1    annum from the same permit, certified filing, or certificate of
 74-2    adjudication;
 74-3                (2)  a request for an emergency transfer of water;
 74-4                (3)  a proposed transfer from a basin to its adjoining
 74-5    coastal basin; or
 74-6                (4)  a proposed transfer from a basin to a county or
 74-7    municipality or the municipality's retail service area that is
 74-8    partially within the basin for use in that part of the county or
 74-9    municipality and the municipality's retail service area not within
74-10    the basin.
74-11          SECTION 8.03. Section 11.132, Water Code, as it exists after
74-12    the transfer and redesignation of Subsections (a)-(c) by this Act,
74-13    is amended by adding new Subsections (a) and (b), relettering
74-14    existing Subsection (f) as Subsection (c), and amending existing
74-15    Subsection (f) to read as follows:
74-16          (a)  Notice shall be given of an application for
74-17    authorization to appropriate unappropriated state water as
74-18    prescribed by Section 5.653.  The commission, on the motion of a
74-19    commissioner or on the request of the executive director or any
74-20    affected person, shall hold a public hearing on the application.
74-21          (b)  The commission may act on the application without
74-22    holding a public hearing if notice has been given as provided by
74-23    Section 5.654 and, within 30 days after the date notice is
74-24    published under Section 5.654(a), a public hearing has not been
74-25    requested in writing by a commissioner, the executive director, or
74-26    an affected person who objects to the application.
74-27          (c) [(f)]  If, on the date specified in the notice prescribed
 75-1    by Section 5.653(c) [Subsection (c) of this section], the
 75-2    commission determines that a public hearing must be held, the
 75-3    matter shall be remanded for hearing without the necessity of
 75-4    issuing further notice other than advising all parties of the time
 75-5    and place where the hearing is to convene.
 75-6          SECTION 8.04. Section 11.139(g), Water Code, is amended to
 75-7    read as follows:
 75-8          (g)  The requirements of Sections 5.653 and 5.654 [Section
 75-9    11.132 of this code] relating to the time for notice, newspaper
75-10    notice, and method of giving a person notice do not apply to a
75-11    hearing held on an application for an emergency authorization under
75-12    this section, but such general notice of the hearing shall be given
75-13    as the commission, under Subsections (c) and (e) of this section,
75-14    considers practicable under the circumstances.
75-15          SECTION 8.05. Section 11.143, Water Code, as it exists after
75-16    the transfer and redesignation of Subsections (d)-(f) by this Act,
75-17    is amended by adding a new Subsection (d), relettering existing
75-18    Subsections (g)-(i) as Subsections (e)-(g), and amending existing
75-19    Subsection (g) to read as follows:
75-20          (d)  Except as otherwise specifically provided by this
75-21    subsection, before the commission may approve an application and
75-22    issue a  permit to use water from a dam or reservoir exempted under
75-23    Section 11.142 for a purpose other than domestic or livestock use,
75-24    it shall give notice as prescribed by Section 5.655 and hold a
75-25    hearing as prescribed by this section.  The commission may act on
75-26    the application without holding a public hearing if the applicant
75-27    publishes the commission's notice as required by Section 5.656.
 76-1          (e) [(g)]  If on the date specified in the notice prescribed
 76-2    by Section 5.656 [Subsection (d) of this section], the commission
 76-3    determines that a public hearing must be held, the matter shall be
 76-4    remanded for hearing without the necessity of issuing further
 76-5    notice other than advising all parties of the time and place where
 76-6    the hearing is to convene.
 76-7          (f) [(h)]  The applicant shall pay the filing fee prescribed
 76-8    by Section 12.111(b) of this code at the time he files the
 76-9    application.
76-10          (g) [(i)]  The commission shall approve the application and
76-11    issue the permit as applied for in whole or part if it determines
76-12    that:
76-13                (1)  there is unappropriated water in the source of
76-14    supply;
76-15                (2)  the applicant has met the requirements of this
76-16    section;
76-17                (3)  the water is to be used for a beneficial purpose;
76-18                (4)  the proposed use is not detrimental to the public
76-19    welfare or to the welfare of the locality; and
76-20                (5)  the proposed use will not impair existing water
76-21    rights.
76-22          SECTION 8.06. Section 11.323(a), Water Code, is amended to
76-23    read as follows:
76-24          (a)  When a final determination of the rights to the waters
76-25    of a stream has been made in accordance with the procedure provided
76-26    in this subchapter and the time for a rehearing has expired, the
76-27    commission shall issue to each person adjudicated a water right a
 77-1    certificate of adjudication, signed by the presiding officer of the
 77-2    commission [chairman] and bearing the seal of the commission.
 77-3          SECTION 8.07. Section 26.022, Water Code, as it exists after
 77-4    the transfer and redesignation of Subsections (b) and (c) by this
 77-5    Act, is amended by amending Subsection (a), relettering existing
 77-6    Subsections (d) and (e) as Subsections (b) and (c), and amending
 77-7    existing Subsections (d) and (e) to read as follows:
 77-8          (a)  Except as otherwise provided in Sections 5.501, 5.504,
 77-9    5.509, and 26.176, the provisions of this section and of Section
77-10    5.658 apply to all hearings conducted in compliance with this
77-11    chapter.
77-12          (b) [(d)]  The individual or individuals holding the hearing,
77-13    called the hearing body, shall conduct the hearing at the time and
77-14    place stated in the notice given under Section 5.655.  The hearing
77-15    body may continue the hearing from time to time and from place to
77-16    place without the necessity of publishing, serving, mailing, or
77-17    otherwise issuing a new notice.
77-18          (c) [(e)]  If a hearing is continued and a time and place for
77-19    the hearing to reconvene are not publicly announced by the person
77-20    conducting the hearing at the hearing before it is recessed, a
77-21    notice of any further setting of the hearing shall be served
77-22    personally or mailed in the manner prescribed by Section 5.658(b)
77-23    [in Subsection (c) of this section] at a reasonable time before the
77-24    new setting, but it is not necessary to publish a newspaper notice
77-25    of the new setting.
77-26          SECTION 8.08. Section 26.028, Water Code, as it exists after
77-27    the transfer and redesignation of Subsections (a), (b), (e), and
 78-1    (g) by this Act, is amended by adding a new Subsection (a),
 78-2    relettering existing Subsections (c) and (d) as Subsections (b) and
 78-3    (c), adding a new Subsection (d), relettering existing Subsection
 78-4    (f) as Subsection (e), and adding a new Subsection (f) to read as
 78-5    follows:
 78-6          (a)  Notice of an application for and a hearing on an
 78-7    application for a permit, permit amendment, or permit renewal shall
 78-8    be given as required by Section 5.659.
 78-9          (b) [(c)]  Except as otherwise provided by this section, the
78-10    commission, on the motion of a commissioner, or on the request of
78-11    the executive director or any affected person, shall hold a public
78-12    hearing on the application for a permit, permit amendment, or
78-13    renewal of a permit.
78-14          (c) [(d)]  Notwithstanding any other provision of this
78-15    chapter, the commission, at a regular meeting without the necessity
78-16    of holding a public hearing, may approve an application to renew or
78-17    amend a permit if:
78-18                (1)  the applicant is not applying to:
78-19                      (A)  increase significantly the quantity of waste
78-20    authorized to be discharged; or
78-21                      (B)  change materially the pattern or place of
78-22    discharge;
78-23                (2)  the activities to be authorized by the renewed or
78-24    amended permit will maintain or improve the quality of waste
78-25    authorized to be discharged;
78-26                (3)  for NPDES permits, notice and the opportunity to
78-27    request a public meeting shall be given in compliance with NPDES
 79-1    program requirements, and the commission shall consider and respond
 79-2    to all timely received and significant public comment; and
 79-3                (4)  the commission determines that an applicant's
 79-4    compliance history during [for] the period established  by the
 79-5    commission under Section 5.754 for consideration of compliance
 79-6    history [preceding five years] raises no issues regarding the
 79-7    applicant's ability to comply with a material term of its permit.
 79-8          (d)  Notice of an application under Subsection (c) shall be
 79-9    given as provided by Section 5.659(c) and the persons notified
79-10    under that section may present information to the commission on the
79-11    application.
79-12          (e) [(f)]  An application to renew a permit for a confined
79-13    animal feeding operation which was issued between July 1, 1974, and
79-14    December 31, 1977, may be set for consideration and may be acted on
79-15    by the commission at a regular meeting without the necessity of
79-16    holding a public hearing if the applicant does not seek to
79-17    discharge into or adjacent to water in the state and does not seek
79-18    to change materially the pattern or place of disposal.
79-19          (f)  For the purposes of Subsection (a), the commission may
79-20    act on an application without holding a public hearing if notice is
79-21    given as provided by Section 5.660 and, within 30 days after the
79-22    date of the publication of notice under Section 5.660(a), neither a
79-23    commissioner, the executive director, nor an affected person who
79-24    objects to the application has requested a public hearing.
79-25          SECTION 8.09. Section 26.0281, Water Code, is amended to read
79-26    as follows:
79-27          Sec. 26.0281.  CONSIDERATION OF [PAST PERFORMANCE AND]
 80-1    COMPLIANCE HISTORY. In considering the issuance, amendment, or
 80-2    renewal of a permit to discharge effluent comprised primarily of
 80-3    sewage or municipal waste, the commission shall consider the [any
 80-4    adjudicated decision on or] compliance history [proceeding
 80-5    addressing past performance and compliance] of the applicant and
 80-6    its operator under the method for evaluating compliance history
 80-7    developed by the commission under Section 5.754 [with the laws of
 80-8    this state governing waste discharge, waste treatment, or waste
 80-9    disposal facilities and with the terms of any permit or order
80-10    issued by the commission].
80-11          SECTION 8.10. Section 26.040, Water Code, as it exists after
80-12    the transfer and redesignation of Subsection (b) by this Act, is
80-13    amended by relettering Subsections (c)-(m) as Subsections (b)-(l)
80-14    and amending existing Subsections (h) and (i) to read as follows:
80-15          (b) [(c)]  The commission may hold a public meeting to
80-16    provide an additional opportunity for public comment.  The
80-17    commission shall give notice of a public meeting under this
80-18    subsection by publication in the Texas Register not later than the
80-19    30th day before the date of the meeting.
80-20          (c) [(d)]  If the commission receives public comment relating
80-21    to issuance of a general permit, the commission may issue the
80-22    general permit only after responding in writing to the comments.
80-23    The commission shall issue a written response to comments on the
80-24    permit at the same time the commission issues or denies the permit.
80-25    The response is available to the public and shall be mailed to each
80-26    person who made a comment.
80-27          (d) [(e)]  A general permit may provide that a discharger who
 81-1    is not covered by an individual permit may obtain authorization to
 81-2    discharge waste under a general permit by submitting to the
 81-3    commission written notice of intent to be covered by the general
 81-4    permit.  A general permit shall specify the deadline for submitting
 81-5    and the information required to be included in a notice of intent.
 81-6    A general permit may authorize a discharger to begin discharging
 81-7    under the general permit immediately on filing a complete and
 81-8    accurate notice of intent, or it may specify a date or period of
 81-9    time after the commission receives the discharger's notice of
81-10    intent on which the discharger may begin discharging unless the
81-11    executive director before that time notifies the discharger that it
81-12    is not eligible for authorization under the general permit.
81-13          (e) [(f)]  A general permit may authorize a discharger to
81-14    discharge without submitting a notice of intent if the commission
81-15    finds that a notice of intent requirement would be inappropriate.
81-16          (f) [(g)]  Authorization to discharge under a general permit
81-17    does not confer a vested right.  After written notice to the
81-18    discharger, the executive director may suspend a discharger's
81-19    authority to discharge under a general permit and may require a
81-20    person discharging under a general permit to obtain authorization
81-21    to discharge under an individual permit as required by Section
81-22    26.027 or other law.
81-23          (g) [(h)]  Notwithstanding other provisions of this chapter,
81-24    the commission, after hearing, shall deny or suspend a discharger's
81-25    authority to discharge under a general permit if the commission
81-26    determines that the [discharger operates any facility for which
81-27    the] discharger's compliance history  is unacceptable under the
 82-1    method of evaluating compliance history   developed by the
 82-2    commission under Section 5.754 during the period established by the
 82-3    commission under that section for consideration of compliance
 82-4    history [contains violations constituting a recurring pattern of
 82-5    egregious conduct that demonstrates a consistent disregard for the
 82-6    regulatory process, including a failure to make a timely and
 82-7    substantial attempt to correct the violations].  A hearing under
 82-8    this subsection is not subject to Chapter 2001, Government Code.
 82-9          (h) [(i)]  A general permit may be issued for a term not to
82-10    exceed five years.  After notice and comment as provided by Section
82-11    5.661 and Subsections (b) and (c) [(b)-(d)], a general permit may
82-12    be amended, revoked, or canceled by the commission or renewed by
82-13    the commission for an additional term or terms not to exceed five
82-14    years each.  A general permit remains in effect until amended,
82-15    revoked, or canceled by the commission or, unless renewed by the
82-16    commission, until expired.  If before a general permit expires the
82-17    commission proposes to renew that general permit, that general
82-18    permit remains in effect until the date on which the commission
82-19    takes final action on the proposed renewal.
82-20          (i) [(j)]  The commission may through a renewal or amendment
82-21    process for a general permit add or delete requirements or
82-22    limitations to the permit.  The commission shall provide a
82-23    reasonable time to allow a discharger covered by the general permit
82-24    to make the changes necessary to comply with the additional
82-25    requirements.
82-26          (j) [(k)]  The commission may impose a reasonable and
82-27    necessary fee under Section 26.0291 on a discharger covered by a
 83-1    general permit.
 83-2          (k) [(l)]  The issuance, amendment, renewal, suspension,
 83-3    revocation, or cancellation of a general permit or of authority to
 83-4    discharge under a general permit is not subject to Subchapters C-F,
 83-5    Chapter 2001, Government Code.
 83-6          (l) [(m)]  The commission may adopt rules as necessary to
 83-7    implement and administer this section.
 83-8          SECTION 8.11. Section 27.018, Water Code, as it exists after
 83-9    the transfer and redesignation of Subsection (b) by this Act, is
83-10    amended by adding a new Subsection (b) and amending Subsection (c)
83-11    to read as follows:
83-12          (b)  Notice of the opportunity to request a public hearing on
83-13    a permit application shall be given as provided by Section 5.662.
83-14          (c)  Before the commission begins to hear testimony in a
83-15    contested case as defined by Chapter 2001, Government Code,
83-16    evidence must be placed in the record to demonstrate that proper
83-17    notice regarding the hearing was given to affected persons as
83-18    required by commission rules adopted under Section 5.662.  If
83-19    mailed notice to an affected person is required, the commission or
83-20    other party to the hearing shall place evidence in the record that
83-21    notice was mailed to the address of the affected person included in
83-22    the appropriate county tax rolls at the time of mailing.  For the
83-23    purposes of this subsection, the affidavit of the commission
83-24    employee responsible for the mailing of the notice, attesting to
83-25    the fact that notice was mailed to the address included in the tax
83-26    rolls at the time of mailing, shall be prima facie evidence of
83-27    proper mailing.  The commission may not proceed with receipt of
 84-1    testimony in a contested case until there is compliance with this
 84-2    subsection.
 84-3          SECTION 8.12. Sections 27.051(d) and (e), Water Code, are
 84-4    amended to read as follows:
 84-5          (d)  The commission, in determining if the use or
 84-6    installation of an injection well for the disposal of hazardous
 84-7    waste is in the public interest under Subsection (a)(1) [of this
 84-8    section], shall consider, but shall not be limited to the
 84-9    consideration of:
84-10                (1)  compliance history of the applicant under the
84-11    method for evaluating compliance history developed by the
84-12    commission under Section 5.754 and in accordance with the
84-13    provisions of Subsection (e) [of this section];
84-14                (2)  whether there is a practical, economic, and
84-15    feasible alternative to an injection well reasonably available to
84-16    manage the types and classes of hazardous waste; and
84-17                (3)  whether the applicant will maintain sufficient
84-18    public liability insurance for bodily injury and property damage to
84-19    third parties that is caused by sudden and non-sudden accidents or
84-20    will otherwise demonstrate financial responsibility in a manner
84-21    adopted by the commission in lieu of public liability insurance.  A
84-22    liability insurance policy which satisfies the policy limits
84-23    required by the hazardous waste management regulations of the
84-24    commission for the applicant's proposed pre-injection facilities
84-25    shall be deemed "sufficient" under this subdivision if the policy:
84-26                      (A)  covers the injection well; and
84-27                      (B)  is issued by a company that is authorized to
 85-1    do business and to write that kind of insurance in this state and
 85-2    is solvent and not currently under supervision or in
 85-3    conservatorship or receivership in this state or any other state.
 85-4          (e)  The commission shall establish a procedure by rule for
 85-5    its preparation of compliance summaries relating to the compliance
 85-6    history of [compliance and noncompliance by] the applicant in
 85-7    accordance with the method for evaluating compliance history
 85-8    developed by the commission under Section 5.754 [with the rules
 85-9    adopted or orders or permits issued by the commission under this
85-10    chapter for any injection well for which a permit has been issued
85-11    under this chapter].  The compliance summaries shall be made
85-12    available to the applicant and any interested person after the
85-13    commission has completed its technical review of the permit
85-14    application and prior to the promulgation of the public notice
85-15    relating to the issuance of the permit.  Evidence of compliance or
85-16    noncompliance by an applicant for an injection well for the
85-17    disposal of hazardous waste with the rules adopted or orders or
85-18    permits issued by the commission under this chapter may be offered
85-19    by any party at a hearing on the applicant's application and
85-20    admitted into evidence subject to applicable rules of evidence.
85-21    All evidence admitted, including compliance history, shall be
85-22    considered by the commission in determining whether to issue,
85-23    amend, extend or renew a permit.
85-24          SECTION 8.13. Section 361.020(d), Health and Safety Code, is
85-25    amended to read as follows:
85-26          (d)  The commission in developing a comprehensive statewide
85-27    strategic plan shall:
 86-1                (1)  consult with:
 86-2                      (A)  the agency's waste minimization, recycling,
 86-3    or reduction division;
 86-4                      (B)  the municipal solid waste management and
 86-5    resource recovery advisory council;
 86-6                      (C)  the pollution prevention [waste reduction]
 86-7    advisory committee;
 86-8                      (D)  the interagency coordinating council; and
 86-9                      (E)  local governments, appropriate regional and
86-10    state agencies, businesses, citizen groups, and private waste
86-11    management firms;
86-12                (2)  hold public hearings in different regions of the
86-13    state; and
86-14                (3)  publish the proposed plan in the Texas Register.
86-15          SECTION 8.14. Section 361.063, Health and Safety Code, as it
86-16    exists after the transfer and redesignation of Subsection (c) by
86-17    this Act, is amended by adding a new Subsection (c) to read as
86-18    follows:
86-19          (c)  Filing notice with the commission as required by Section
86-20    5.663, Water Code, initiates the preapplication review process.
86-21          SECTION 8.15. Section 361.079, Health and Safety Code, is
86-22    amended by amending the heading to read as follows:
86-23          Sec. 361.079.  [NOTICE CONCERNING RECEIPT OF PERMIT
86-24    APPLICATION;] HEARING PROCEDURES.
86-25          SECTION 8.16. Section 361.079, Health and Safety Code, as it
86-26    exists after the transfer and redesignation of Subsections (a) and
86-27    (c) by this Act, is amended by adding a new Subsection (a) to read
 87-1    as follows:
 87-2          (a)  Notice for a hearing under Section 361.080 or 361.081 is
 87-3    given as provided by Section 5.665, Water Code.  The commission by
 87-4    rule shall establish procedures for a public hearing under Section
 87-5    361.080 or 361.081.
 87-6          SECTION 8.17. Section 361.0791, Health and Safety Code, as it
 87-7    exists after the transfer and redesignation of Subsections (e),
 87-8    (f), and (g) by this Act, is amended by adding a new Subsection (e)
 87-9    to read as follows:
87-10          (e)  If a meeting is required under Subsection (a), notice of
87-11    the meeting shall be given as provided by Section 5.666, Water
87-12    Code.
87-13          SECTION 8.18. Section 361.080(b), Health and Safety Code, is
87-14    amended to read as follows:
87-15          (b)  Notice for a hearing session held under this section
87-16    shall be provided in accordance with Section 5.666, Water Code
87-17    [361.0791].
87-18          SECTION 8.19. Section 361.081, Health and Safety Code, as it
87-19    exists after the transfer and redesignation of Subsections (a) and
87-20    (b) by this Act, is amended by amending the heading, adding a new
87-21    Subsection (a), and relettering and amending Subsection (c) to
87-22    read as follows:
87-23          Sec. 361.081.  [NOTICE OF] HEARING CONCERNING APPLICATION FOR
87-24    A SOLID WASTE FACILITY. (a)  The commission shall require the
87-25    applicant to provide notice of the hearing as provided by Section
87-26    5.667, Water Code.
87-27          (b) [(c)]  In addition to the requirements of Subsection (a),
 88-1    the commission shall hold a public meeting and the applicant shall
 88-2    give notice concerning the application for a permit for a new
 88-3    hazardous waste management facility as provided by Section 5.666,
 88-4    Water Code [361.0791].
 88-5          SECTION 8.20. Section 361.082, Health and Safety Code, as it
 88-6    exists after the transfer and redesignation of Subsection (c) by
 88-7    this Act, is amended by adding a new Subsection (c) and amending
 88-8    Subsection (d) to read as follows:
 88-9          (c)  The commission by rule shall establish procedures for a
88-10    public hearing on an application for a permit under this section.
88-11    Notice of the hearing shall be given as provided by Section 5.668,
88-12    Water Code.
88-13          (d)  In addition to the hearing held under this section, the
88-14    commission shall hold a public meeting and the applicant shall give
88-15    notice as provided by Section 5.666, Water Code [361.0791].
88-16          SECTION 8.21. Sections 361.084(a) and (c), Health and Safety
88-17    Code, are amended to read as follows:
88-18          (a)  The commission by rule shall establish a procedure to
88-19    prepare compliance summaries relating to the applicant's solid
88-20    waste management activities in accordance with the method for
88-21    evaluating compliance history developed by the commission under
88-22    Section 5.754, Water Code.
88-23          (c)  Evidence of compliance or noncompliance by an applicant
88-24    for a solid waste management facility permit with agency rules,
88-25    permits, other orders, or evidence of a final determination of
88-26    noncompliance with federal statutes or statutes of any state during
88-27    [in] the period adopted under Section 5.754, Water Code, for the
 89-1    consideration of compliance history [preceding five years]
 89-2    concerning solid waste management may be:
 89-3                (1)  offered by a party at a hearing concerning the
 89-4    application; and
 89-5                (2)  admitted into evidence subject to applicable rules
 89-6    of evidence.
 89-7          SECTION 8.22. Sections 361.088(d) and (f), Health and Safety
 89-8    Code, are amended to read as follows:
 89-9          (d)  In addition to providing an opportunity for a hearing
89-10    held under this section, the commission shall hold a public meeting
89-11    and give notice as provided by Section 5.666, Water Code
89-12    [361.0791].
89-13          (f)  Notwithstanding Subsection (e), if the commission
89-14    determines that an applicant's compliance history for the period
89-15    adopted under Section 5.754, Water Code, for the consideration of
89-16    compliance history [preceding five years] raises an issue regarding
89-17    the applicant's ability to comply with a material term of its
89-18    permit, the commission shall provide an opportunity to request a
89-19    contested case hearing.
89-20          SECTION 8.23. Section 361.089, Health and Safety Code, as it
89-21    exists after the transfer and redesignation of Subsections (b) and
89-22    (c) by this Act, is amended by adding new Subsections (b) and (c)
89-23    and amending Subsections (a), (e), and (f) to read as follows:
89-24          (a)  The commission may, for good cause, deny or amend a
89-25    permit it issues or has authority to issue for reasons pertaining
89-26    to public health, air or water pollution, or land use, or for
89-27    having a compliance history that is unacceptable under the method
 90-1    of evaluating compliance history developed by the commission under
 90-2    Section 5.754, Water Code, during the period established by the
 90-3    commission under that section for consideration of compliance
 90-4    history [a violation of this chapter or other applicable laws or
 90-5    rules controlling the management of solid waste].
 90-6          (b)  The commission shall provide notice under Section 5.669,
 90-7    Water Code, and an opportunity for a hearing to the permit holder
 90-8    or applicant and persons affected.  The commission may also hold a
 90-9    hearing on its own motion.
90-10          (c)  The commission by rule shall establish procedures for
90-11    any public hearing under this section.
90-12          (e)  The commission may deny an original or renewal permit if
90-13    it is found, after notice and hearing, that:
90-14                (1)  the permit holder has a compliance history that is
90-15    unacceptable under the method of evaluating compliance history
90-16    developed by the commission under Section 5.754, Water Code, during
90-17    the period established by the commission under that section for
90-18    consideration of compliance history [record of environmental
90-19    violations in the preceding five years at the permitted site;]
90-20                [(2)  the applicant has a record of environmental
90-21    violations in the preceding five years at any site owned, operated,
90-22    or controlled by the applicant];
90-23                (2) [(3)]  the permit holder or applicant made a false
90-24    or misleading statement in connection with an original or renewal
90-25    application, either in the formal application or in any other
90-26    written instrument relating to the application submitted to the
90-27    commission, its officers, or its employees;
 91-1                (3) [(4)]  the permit holder or applicant is indebted
 91-2    to the state for fees, payment of penalties, or taxes imposed by
 91-3    this title or by a rule of the commission; or
 91-4                (4) [(5)]  the permit holder or applicant is unable to
 91-5    ensure that the management of the hazardous waste management
 91-6    facility conforms or will conform to this title and the rules of
 91-7    the commission.
 91-8          (f)  Before denying a permit under this section, the
 91-9    commission must find:
91-10                (1)  that the applicant has a  compliance history that
91-11    is unacceptable under the method of evaluating compliance history
91-12    developed by the commission under Section 5.754, Water Code, during
91-13    the period established by the commission under that section for
91-14    consideration of compliance history [a violation or violations are
91-15    significant and that the permit holder or applicant has not made a
91-16    substantial attempt to correct the violations]; or
91-17                (2)  that the permit holder or applicant is indebted to
91-18    the state for fees, payment of penalties, or taxes imposed by this
91-19    title or by a rule of the commission.
91-20          SECTION 8.24. Section 382.017, Health and Safety Code, as it
91-21    exists after the transfer and redesignation of Subsection (b) by
91-22    this Act, is amended by adding a new Subsection (b) to read as
91-23    follows:
91-24          (b)  Notice of a public hearing on a proposed rule under this
91-25    section must be given as provided by Section 5.670, Water Code.
91-26          SECTION 8.25. Section 382.0518(c), Health and Safety Code, is
91-27    amended to read as follows:
 92-1          (c)  In considering the issuance, amendment, or renewal of a
 92-2    permit, the commission may consider the applicant's compliance
 92-3    history, in accordance with the method for evaluating compliance
 92-4    history developed by the commission under Section 5.754, Water
 92-5    Code, during the period established by the commission under Section
 92-6    5.754, Water Code, for the consideration of compliance history [any
 92-7    adjudicated decision or compliance proceeding within the five years
 92-8    before the date on which the application was filed that addressed
 92-9    the applicant's past performance and compliance with the laws of
92-10    this state, another state, or the United States governing air
92-11    contaminants or with the terms of any permit or order issued by the
92-12    commission].
92-13          SECTION 8.26. Section 382.05191(a), Health and Safety Code,
92-14    is amended to read as follows:
92-15          (a)  An applicant for a permit under Section 382.0519 shall
92-16    publish notice of intent to obtain the permit in accordance with
92-17    Section 5.673, Water Code [382.056].
92-18          SECTION 8.27. Section 382.055, Health and Safety Code, as it
92-19    exists after the transfer and redesignation of Subsection (c) by
92-20    this Act, is amended by adding a new Subsection (c) and amending
92-21    Subsection (d) to read as follows:
92-22          (c)  The commission shall provide notice to the permit
92-23    holder, as provided by Section 5.672, Water Code, that the permit
92-24    is scheduled for review.
92-25          (d)  In determining whether and under which conditions a
92-26    preconstruction permit should be renewed, the commission shall
92-27    consider, at a minimum:
 93-1                (1)  [whether] the compliance history of the facility
 93-2    according to the method developed by the commission under Section
 93-3    5.754, Water Code, for the consideration of compliance history [is
 93-4    or has been in substantial compliance with this chapter and the
 93-5    terms of the existing permit]; and
 93-6                (2)  the condition and effectiveness of existing
 93-7    emission control equipment and practices.
 93-8          SECTION 8.28. Section 382.056, Health and Safety Code, as it
 93-9    exists after the transfer and redesignation of Subsections (a)-(c),
93-10    (g), and (i) by this Act, is amended by adding a new Subsection
93-11    (a), relettering Subsections (d)-(f) as Subsections (b)-(d), adding
93-12    a new Subsection (e), relettering Subsections (h) and (j)-(p) as
93-13    Subsections (f)-(m), and amending existing Subsection (h) to read
93-14    as follows:
93-15          (a)  An applicant for a permit under Section 382.0518 or a
93-16    permit renewal review under Section 382.055 shall publish notice of
93-17    intent to obtain the permit or permit review as provided by Section
93-18    5.673, Water Code.
93-19          (b) [(d)]  The applicant shall make a copy of the application
93-20    available for review and copying at a public place in the county in
93-21    which the facility or federal source is located or proposed to be
93-22    located.
93-23          (c) [(e)]  The applicant, in cooperation with the executive
93-24    director, may hold a public meeting in the county in which the
93-25    facility or federal source is located or proposed to be located in
93-26    order to inform the public about the application and obtain public
93-27    input.
 94-1          (d) [(f)]  The executive director shall conduct a technical
 94-2    review of and issue a preliminary decision on the application.
 94-3          (e)  If, in response to the notice published under Subsection
 94-4    (a) for a permit under Section 382.0518 or a permit renewal review
 94-5    under Section 382.055, a person requests during the period provided
 94-6    by commission rule that the commission hold a public hearing and
 94-7    the request is not withdrawn before the date the preliminary
 94-8    decision is issued, the applicant shall publish notice of the
 94-9    preliminary decision as provided by Section 5.673(d), Water Code,
94-10    and the commission shall seek public comment on the preliminary
94-11    decision.  The commission shall consider the request for public
94-12    hearing under the procedures provided by Section 5.673(e), Water
94-13    Code, and Subsections (g)-(k).  The commission may not seek further
94-14    public comment or hold a public hearing under the procedures
94-15    provided by Section 5.673(e), Water Code, and Subsections (g)-(k)
94-16    in response to a request for a public hearing on an amendment,
94-17    modification, or renewal that would not result in an increase in
94-18    allowable emissions and would not result in the emission of an air
94-19    contaminant not previously emitted.
94-20          (f) [(h)]  If, in response to the notice published under
94-21    Section 5.673(a), Water Code, [Subsection (a)] for a permit under
94-22    Section 382.054, a person requests during the public comment period
94-23    provided by commission rule that the commission hold a public
94-24    hearing, the commission shall consider the request under the
94-25    procedures provided by Section 382.0561 and not under the
94-26    procedures provided by Section 5.673(e), Water Code, and
94-27    Subsections (g)-(k) [(i)-(n)].
 95-1          (g) [(j)]  The applicant shall make a copy of the preliminary
 95-2    decision available for review and copying at a public place in the
 95-3    county in which the facility is located or proposed to be located.
 95-4          (h) [(k)]  During the public comment period, the executive
 95-5    director may hold one or more public meetings in the county in
 95-6    which the facility is located or proposed to be located.  The
 95-7    executive director shall hold a public meeting:
 95-8                (1)  on the request of a member of the legislature who
 95-9    represents the general area in which the facility is located or
95-10    proposed to be located; or
95-11                (2)  if the executive director determines that there is
95-12    substantial public interest in the proposed activity.
95-13          (i) [(l)]  The executive director, in accordance with
95-14    procedures adopted by the commission by rule, shall file with the
95-15    chief clerk of the commission a response to each relevant and
95-16    material public comment on the preliminary decision filed during
95-17    the public comment period.
95-18          (j) [(m)]  The chief clerk of the commission shall transmit
95-19    the executive director's decision, the executive director's
95-20    response to public comments, and instructions for requesting that
95-21    the commission reconsider the executive director's decision or hold
95-22    a contested case hearing to:
95-23                (1)  the applicant;
95-24                (2)  any person who submitted comments during the
95-25    public comment period;
95-26                (3)  any person who requested to be on the mailing list
95-27    for the permit action; and
 96-1                (4)  any person who timely filed a request for a public
 96-2    hearing in response to the notice published under Subsection (a).
 96-3          (k) [(n)]  Except as provided by Section 382.0561, the
 96-4    commission shall consider a request that the commission reconsider
 96-5    the executive director's decision or hold a public hearing in
 96-6    accordance with the procedures provided by Section 5.556, Water
 96-7    Code.
 96-8          (l) [(o)]  Notwithstanding other provisions of this chapter,
 96-9    the commission may hold a hearing on a permit amendment,
96-10    modification, or renewal if the commission determines that the
96-11    application involves a facility for which the applicant's
96-12    compliance history is unacceptable under the method of evaluating
96-13    compliance history developed by the commission under Section 5.754,
96-14    Water Code, during the period established by the commission under
96-15    that section for consideration of compliance history [contains
96-16    violations which are unresolved and which constitute a recurring
96-17    pattern of egregious conduct which demonstrates a consistent
96-18    disregard for the regulatory process, including the failure to make
96-19    a timely and substantial attempt to correct the violations].
96-20          (m) [(p)]  The commission by rule shall provide for
96-21    additional notice, opportunity for public comment, or opportunity
96-22    for public hearing to the extent necessary to satisfy a requirement
96-23    to obtain or maintain delegation or approval of a federal program.
96-24          SECTION 8.29. Section 382.0561, Health and Safety Code, as it
96-25    exists after the transfer and redesignation of Subsection (f) by
96-26    this Act, is amended by adding a new Subsection (f) to read as
96-27    follows:
 97-1          (f)  Notice of the public comment period and opportunity for
 97-2    a hearing under this section shall be published in accordance with
 97-3    Section 5.674, Water Code.
 97-4          SECTION 8.30. Section 382.058, Health and Safety Code, as
 97-5    amended by Chapters 391 and 406, Acts of the 76th Legislature,
 97-6    Regular Session, 1999, is reenacted and amended to read as follows:
 97-7          Sec. 382.058.  NOTICE OF AND HEARING ON CONSTRUCTION OF
 97-8    CONCRETE PLANT UNDER PERMIT BY RULE, STANDARD PERMIT, OR EXEMPTION
 97-9    [PROVISIONS RELATING TO PERMITS BY RULE OR STANDARD PERMITS FOR
97-10    COMMISSION EXEMPTION FOR CONSTRUCTION OF CERTAIN CONCRETE PLANTS].
97-11    (a)  A person may not begin construction on any concrete plant that
97-12    performs wet batching, dry batching, or central mixing under a
97-13    standard permit under Section 382.05195 or a permit by rule adopted
97-14    by the commission under Section 382.05196 unless the person has
97-15    complied with the notice and opportunity for hearing provisions
97-16    under Section 5.673, Water Code, and Section 382.056.
97-17          (b)  This section does not apply to a concrete plant located
97-18    temporarily in the right-of-way, or contiguous to the right-of-way,
97-19    of a public works project.
97-20          (c)  For purposes of this section, only those persons
97-21    actually residing in a permanent residence within 440 yards of the
97-22    proposed plant may request a hearing under Section 382.056
97-23    [382.056(d)] as a person who may be affected.
97-24          (d)  If the commission considers air dispersion modeling
97-25    information in the course of adopting an exemption under Section
97-26    382.057 for a concrete plant that performs wet batching, dry
97-27    batching, or central mixing, the commission may not require that a
 98-1    person who qualifies for the exemption conduct air dispersion
 98-2    modeling before beginning construction of a concrete plant, and
 98-3    evidence regarding air dispersion modeling may not be submitted at
 98-4    a hearing under Section 382.056.
 98-5          SECTION 8.31. Section 401.110, Health and Safety Code, is
 98-6    amended to read as follows:
 98-7          Sec. 401.110.  DETERMINATION ON LICENSE. In making a
 98-8    determination whether to grant, deny, amend, revoke, suspend, or
 98-9    restrict a license or registration, the department or commission
98-10    may consider [those aspects of] an applicant's or license holder's
98-11    [background that bear materially on the ability to fulfill the
98-12    obligations of licensure, including] technical competence and
98-13    compliance history under the method for evaluation of compliance
98-14    history developed by the commission under Section 5.754, Water Code
98-15    [the applicant's or license holder's record in areas involving
98-16    radiation].
98-17          SECTION 8.32. Section 401.112(a), Health and Safety Code, is
98-18    amended to read as follows:
98-19          (a)  The department or commission, within its jurisdiction,
98-20    in making a licensing decision on a specific license application to
98-21    process or dispose of low-level radioactive waste from other
98-22    persons, shall consider:
98-23                (1)  site suitability, geological, hydrological, and
98-24    meteorological factors, and natural hazards;
98-25                (2)  compatibility with present uses of land near the
98-26    site;
98-27                (3)  socioeconomic effects on surrounding communities
 99-1    of operation of the licensed activity and of associated
 99-2    transportation of low-level radioactive waste;
 99-3                (4)  the need for and alternatives to the proposed
 99-4    activity, including an alternative siting analysis prepared by the
 99-5    applicant;
 99-6                (5)  the applicant's qualifications, including
 99-7    financial and [,] technical qualifications[,] and compliance
 99-8    history under the method for evaluation of compliance history
 99-9    developed by the commission under Section 5.754, Water Code [past
99-10    operating practices];
99-11                (6)  background monitoring plans for the proposed site;
99-12                (7)  suitability of facilities associated with the
99-13    proposed activities;
99-14                (8)  chemical, radiological, and biological
99-15    characteristics of the low-level radioactive waste and waste
99-16    classification under Section 401.053;
99-17                (9)  adequate insurance of the applicant to cover
99-18    potential injury to any property or person, including potential
99-19    injury from risks relating to transportation;
99-20                (10)  training programs for the applicant's employees;
99-21                (11)  a monitoring, record-keeping, and reporting
99-22    program;
99-23                (12)  spill detection and cleanup plans for the
99-24    licensed site and related to associated transportation of low-level
99-25    radioactive waste;
99-26                (13)  decommissioning and postclosure care plans;
99-27                (14)  security plans;
 100-1               (15)  worker monitoring and protection plans;
 100-2               (16)  emergency plans; and
 100-3               (17)  a monitoring program for applicants that includes
 100-4   prelicense and postlicense monitoring of background radioactive and
 100-5   chemical characteristics of the soils, groundwater, and vegetation.
 100-6         SECTION 8.33. Section 401.114, Health and Safety Code, is
 100-7   amended to read as follows:
 100-8         Sec. 401.114.  NOTICE AND HEARING. (a)  Before the department
 100-9   [or commission], within its jurisdiction, grants or renews a
100-10   license to process [or dispose of] low-level radioactive waste from
100-11   other persons, the department [agency] shall give notice and shall
100-12   provide an opportunity for a public hearing in the manner provided
100-13   by the department's [agency's] formal hearing procedure and Chapter
100-14   2001, Government Code.
100-15         (b)  Before the commission, within its jurisdiction, grants
100-16   or renews a license to dispose of low-level radioactive waste from
100-17   other persons, the commission shall give notice and shall provide
100-18   an opportunity for a public hearing in the manner provided by
100-19   Section 5.676, Water Code, the commission's formal hearing
100-20   procedure, and Chapter 2001, Government Code.
100-21         (c)  In addition to other notice, the department [agency]
100-22   shall publish notice of the hearing in the manner provided by
100-23   Chapter 313, Government Code, in the county in which the proposed
100-24   facility is to be located.  The notice shall state the subject and
100-25   the time, place, and date of the hearing.
100-26         (d) [(c)]  The department [agency] shall mail, by certified
100-27   mail in the manner provided by board [the agency's] rules, written
 101-1   notice to each person who owns property adjacent to the proposed
 101-2   site.  The notice must be mailed not later than the 31st day before
 101-3   the date of the hearing and must include the same information that
 101-4   is in the published notice.  If true, the department [agency] or
 101-5   the applicant must certify that the notice was mailed as required
 101-6   by this subsection, and at the hearing the certificate is
 101-7   conclusive evidence of the mailing.
 101-8         SECTION 8.34. Section 401.116, Health and Safety Code, is
 101-9   amended by amending Subsection (b), adding a new Subsection (c),
101-10   relettering existing Subsections (c) and (d) as Subsections (d) and
101-11   (e), and amending existing Subsection (d) to read as follows:
101-12         (b)  The department [or commission, as appropriate,] shall
101-13   publish notice of an [the license] amendment to a license to
101-14   process low-level radioactive waste once in the Texas Register and
101-15   in a newspaper of general circulation in the county in which the
101-16   licensed activity is located and shall give notice to any person
101-17   who has notified the agency, in advance, of the desire to receive
101-18   notice of proposed amendment of the license.
101-19         (c)  The commission shall publish notice of an amendment to a
101-20   license to dispose of low-level radioactive waste as provided by
101-21   Section 5.677, Water Code.
101-22         (d)  Notice under Subsection (b) [this section] must include:
101-23               (1)  the identity of the license holder;
101-24               (2)  identification of the license; and
101-25               (3)  a short and plain statement of the license
101-26   amendment's substance.
101-27         (e) [(d)]  The agency shall give notice and hold a hearing to
 102-1   consider the license amendment if a person affected files a written
 102-2   complaint with the agency before the 31st day after the date on
 102-3   which notice is published under Subsection (b) or Section 5.677,
 102-4   Water Code, as appropriate.  The agency shall give notice of the
 102-5   hearing as provided by Section 401.114 or by Section 5.676, Water
 102-6   Code.
 102-7                 ARTICLE 9.  TRANSITIONS; EFFECTIVE DATE
 102-8         SECTION 9.01.  TRANSFER OF SAFE DRINKING WATER LABORATORY
 102-9   CERTIFICATION PROGRAM. (a)  On the effective date of this Act, the
102-10   following are transferred to the Texas Natural Resource
102-11   Conservation Commission:
102-12               (1)  all powers, duties, rights, and obligations of the
102-13   Texas Department of Health relating to the safe drinking water
102-14   laboratory certification program administered by the Texas
102-15   Department of Health's bureau of laboratories;
102-16               (2)  all personnel, equipment, data, documents,
102-17   facilities, and other items of the Texas Department of Health
102-18   relating to the safe drinking water laboratory certification
102-19   program; and
102-20               (3)  all appropriations to the Texas Department of
102-21   Health pertaining to the safe drinking water laboratory
102-22   certification program, and all other state or federal money
102-23   available to the Texas Department of Health for that program.
102-24         (b)  On the effective date of this Act, Texas Department of
102-25   Health rules relating to the safe drinking water laboratory
102-26   certification program administered by the Texas Department of
102-27   Health's bureau of laboratories are the rules of the Texas Natural
 103-1   Resource Conservation Commission until the commission adopts rules
 103-2   to govern that program.
 103-3         (c)  A certification issued by the Texas Department of Health
 103-4   for a safe drinking water laboratory before September 1, 2001,
 103-5   remains in effect until the date it expires or is revoked,
 103-6   notwithstanding the change in law made by this section.
 103-7         SECTION 9.02.  TRANSFER OF ENVIRONMENTAL TESTING LABORATORY
 103-8   CERTIFICATION PROGRAM. (a)  On the effective date of this Act, the
 103-9   following are transferred to the Texas Natural Resource
103-10   Conservation Commission:
103-11               (1)  all powers, duties, rights, and obligations of the
103-12   Texas Department of Health relating to the environmental testing
103-13   laboratory certification program administered by the Texas
103-14   Department of Health under Chapter 421, Health and Safety Code;
103-15               (2)  all personnel, equipment, data, documents,
103-16   facilities, and other items of the Texas Department of Health
103-17   relating to the environmental testing laboratory certification
103-18   program; and
103-19               (3)  all appropriations to the Texas Department of
103-20   Health pertaining to the environmental laboratory certification
103-21   program, and all other state or federal money available to the
103-22   Texas Department of Health for that program.
103-23         (b)  On the effective date of this Act, Texas Department of
103-24   Health rules relating to the environmental testing laboratory
103-25   certification program administered by the Texas Department of
103-26   Health under Chapter 421, Health and Safety Code, are the rules of
103-27   the Texas Natural Resource Conservation Commission until the
 104-1   commission adopts rules to govern that program.
 104-2         (c)  A certification issued by the Texas Department of Health
 104-3   before September 1, 2001, remains in effect until the date it
 104-4   expires or is revoked, notwithstanding the change in law made by
 104-5   this section and by this Act to Chapter 421, Health and Safety
 104-6   Code.
 104-7         (d)  The change in law made by the addition by this Act of
 104-8   Section 5.127, Water Code, relating to the acceptance of
 104-9   environmental testing laboratory results by the Texas Natural
104-10   Resource Conservation Commission, applies only to environmental
104-11   testing laboratory results submitted to the commission on or after
104-12   the third anniversary of the date on which the commission publishes
104-13   notice in the Texas Register that the commission's environmental
104-14   laboratory testing program established under Subchapter R, Chapter
104-15   5, Water Code, as added by this Act, has met the standards of the
104-16   National Environmental Laboratory Accreditation Conference.
104-17         SECTION 9.03.  CERTIFICATION OF WATER TREATMENT SPECIALISTS.
104-18   (a)  On the effective date of this Act, the following are
104-19   transferred to the Texas Natural Resource Conservation Commission:
104-20               (1)  all powers, duties, rights, and obligations of the
104-21   Texas Department of Health relating to the certification of water
104-22   treatment specialists administered by the Texas Department of
104-23   Health under Section 3A, The Plumbing License Law (Article
104-24   6243-101, Vernon's Texas Civil Statutes);
104-25               (2)  all equipment, data, documents, facilities, and
104-26   other items of the Texas Department of Health relating to the
104-27   certification of water treatment specialists; and
 105-1               (3)  all appropriations to the Texas Department of
 105-2   Health pertaining to the certification of water treatment
 105-3   specialists, and all other state or federal money available to the
 105-4   Texas Department of Health for that program.
 105-5         (b)  On the effective date of this Act, Texas Department of
 105-6   Health rules relating to the certification of water treatment
 105-7   specialists are the rules of the Texas Natural Resource
 105-8   Conservation Commission until the commission adopts rules to govern
 105-9   that program.
105-10         SECTION 9.04.  PERFORMANCE-BASED REGULATION. (a)  Not later
105-11   than March 1, 2002, the Texas Natural Resource Conservation
105-12   Commission by rule shall establish the components of and standards
105-13   for evaluating compliance history, as required by Section 5.754,
105-14   Water Code, as added by this Act.
105-15         (b)  Not later than September 1, 2002, the Texas Natural
105-16   Resource Conservation Commission shall begin tracking compliance
105-17   for use in establishing the regulatory structure authorized by
105-18   Subchapter Q, Chapter 5, Water Code, as added by this Act.
105-19         (c)  As soon as practicable, but not later than September 1,
105-20   2005, the Texas Natural Resource Conservation Commission shall
105-21   adopt rules governing and shall implement the tiered regulatory
105-22   structure required by Section 5.752, Water Code, as added by this
105-23   Act.  The commission shall adopt the rules and implement the tiered
105-24   regulatory structure in stages over the three-year period.
105-25         (d)  The changes made by this Act in the consideration of
105-26   compliance history in decisions by the Texas Natural Resource
105-27   Conservation Commission relating to the issuance, amendment,
 106-1   modification, or renewal of permits under the following sections
 106-2   apply only to an application for the issuance, amendment,
 106-3   modification, or renewal of a permit submitted to the Texas Natural
 106-4   Resource Conservation Commission on or after March 1, 2002:
 106-5               (1)  Sections 5.757, 26.028, 26.0281, 26.040, and
 106-6   27.018, Water Code; and
 106-7               (2)  Sections 361.084, 361.088, 361.089, 382.0518,
 106-8   382.055, 382.056, 401.110, and 401.112, Health and Safety Code.
 106-9         (e)  The changes made by this Act in the consideration of
106-10   compliance history in decisions by the Texas Natural Resource
106-11   Conservation Commission relating to inspections and flexible
106-12   permitting under Sections 5.758 and 5.759, Water Code, apply,
106-13   effective March 1, 2002, to a person who holds a permit issued by
106-14   the Texas Natural Resource Conservation Commission that is subject
106-15   to those sections.
106-16         (f)  The changes made by this Act in the consideration of
106-17   compliance history in decisions of the Texas Natural Resource
106-18   Conservation Commission relating to the suspension or revocation of
106-19   a permit or the imposition of a penalty in a matter under the
106-20   jurisdiction of the commission applies only to a proceeding that is
106-21   initiated or an action that is brought on or after March 1, 2002.
106-22         (g)  For the period between March 1, 2002, and September 1,
106-23   2005, the commission by rule may temporarily modify specific
106-24   compliance history requirements to implement the regulatory
106-25   structure being developed under Subchapter Q, Chapter 5, Water
106-26   Code.  This section does not authorize the commission to modify
106-27   existing statutory requirements relating to the use of compliance
 107-1   history in any enforcement proceeding.
 107-2         SECTION 9.05.  FEES. The changes in law made by Sections
 107-3   5.702 and 5.703, Water Code, as added by this Act, relating to the
 107-4   timely payment and adjustment of fees due the Texas Natural
 107-5   Resource Conservation Commission, and by Section 5.706, Water Code,
 107-6   as added by this Act, relating to penalties and interest for
 107-7   delinquent fees, apply only to fees that are due on or after
 107-8   September 1, 2001.
 107-9         SECTION 9.06.  REGULATORY FLEXIBILITY. The change in law made
107-10   by Section 5.123, Water Code, as added by Chapter 1203, Acts of the
107-11   75th Legislature, Regular Session, 1997, relating to regulatory
107-12   flexibility, as transferred, redesignated, and amended by this Act,
107-13   applies only to an application for regulatory flexibility that is
107-14   submitted to the Texas Natural Resource Conservation Commission on
107-15   or after September 1, 2001.
107-16         SECTION 9.07.  COMMISSIONER TRAINING. (a)  As soon as
107-17   practicable after September 1, 2001, but not later than December 1,
107-18   2001, the Texas Natural Resource Conservation Commission shall
107-19   adopt rules to implement the training program for commission
107-20   members required by Section 5.0535, Water Code, as added by this
107-21   Act.
107-22         (b)  The training requirements of Section 5.0535, Water Code,
107-23   as added by this Act, apply only to a member of the commission who
107-24   is appointed on or after January 1, 2002.
107-25         SECTION 9.08.  EXECUTIVE DIRECTOR. The change in law made by
107-26   this Act to Section 5.228, Water Code, relating to hearing
107-27   appearances by the executive director of the Texas Natural Resource
 108-1   Conservation Commission, applies only to a hearing in which the
 108-2   executive director is named a party on or after September 1, 2001.
 108-3         SECTION 9.09.  INITIATION OF ACTION ON CITIZEN EVIDENCE. (a)
 108-4   Not later than December 1, 2001, the Texas Natural Resource
 108-5   Conservation Commission shall adopt rules to implement the
 108-6   requirements of Section 7.0025, Water Code, as added by this Act,
 108-7   relating to the initiation of enforcement action by the commission
 108-8   based on evidence of an environmental problem submitted by a
 108-9   private individual.
108-10         (b)  The change in law made by Section 7.0025, Water Code, as
108-11   added by this Act, applies only to evidence of an environmental
108-12   problem submitted to the Texas Natural Resource Conservation
108-13   Commission on or after January 1, 2002.
108-14         SECTION 9.10.  EFFECTIVE DATE. Except as otherwise provided
108-15   by this Act, this Act takes effect September 1, 2001.