By Merritt                                            H.B. No. 3426
         77R5158 SMH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the transfer of responsibility for responding to and
 1-3     cleaning up certain oil discharges in coastal areas to the Railroad
 1-4     Commission of Texas.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 40.002(c), Natural Resources Code, is
 1-7     amended to read as follows:
 1-8           (c)  The legislature intends by this chapter to exercise the
 1-9     police power of the state to protect its coastal waters and
1-10     adjacent shorelines by conferring upon the Railroad Commission of
1-11     Texas [Commissioner of the General Land Office] the power to:
1-12                 (1)  prevent spills and discharges of oil by requiring
1-13     and monitoring preventive measures and response planning;
1-14                 (2)  provide for prompt response to abate and contain
1-15     spills and discharges of oil and ensure the removal and cleanup of
1-16     pollution from such spills and discharges;
1-17                 (3)  provide for development of a state coastal
1-18     discharge contingency plan through planning and coordination with
1-19     the Texas Natural Resource Conservation Commission to protect
1-20     coastal waters from all types of spills and discharges;  and
1-21                 (4)  administer a fund to provide for funding these
1-22     activities and to guarantee the prompt payment of certain
1-23     reasonable claims resulting from spills and discharges of oil.
1-24           SECTION 2.  Section 40.003(3), Natural Resources Code, is
 2-1     amended to read as follows:
 2-2                 (3)  "Commission [Commissioner]" means the Railroad
 2-3     Commission of Texas [Commissioner of the General Land Office].
 2-4           SECTION 3.  Subchapter A, Chapter 40, Natural Resources Code,
 2-5     is amended by adding Section 40.0025 to read as follows:
 2-6           Sec. 40.0025.  TRANSFER OF POWERS AND DUTIES TO RAILROAD
 2-7     COMMISSION OF TEXAS.  Except as provided by Section 40.152(b), a
 2-8     reference in this chapter to the commissioner, the commissioner of
 2-9     the General Land Office, or the General Land Office means the
2-10     Railroad Commission of Texas.
2-11           SECTION 4.  Sections 40.004-40.007, Natural Resources Code,
2-12     are amended to read as follows:
2-13           Sec. 40.004.  ADMINISTRATION OF OIL SPILL RESPONSE AND
2-14     CLEANUP.  (a)  The commission [General Land Office, under the
2-15     direction and control of the commissioner,] is the state's lead
2-16     agency for response to actual or threatened unauthorized discharges
2-17     of oil and for cleanup of pollution from unauthorized discharges of
2-18     oil.  The commission [commissioner] shall administer this chapter
2-19     and direct all state discharge response and cleanup operations
2-20     resulting from unauthorized discharges of oil.
2-21           (b)  All persons and all other officers, agencies, and
2-22     subdivisions of the state shall carry out response and cleanup
2-23     operations related to unauthorized discharges of oil subject to the
2-24     authority granted to the commission [commissioner] under this
2-25     chapter.
2-26           Sec. 40.005.  ADMINISTRATION OF HAZARDOUS SUBSTANCE SPILL
2-27     RESPONSE AND CLEANUP.  The commission [General Land Office, under
 3-1     the direction and control of the commissioner,] is the state's lead
 3-2     agency for initiating response to all actual or threatened
 3-3     unauthorized discharges of oil.  In the event of an unauthorized
 3-4     discharge of a hazardous substance, nothing in this chapter shall
 3-5     preclude the Texas Natural Resource Conservation Commission from at
 3-6     the earliest time practicable assuming response and cleanup duties
 3-7     pursuant to Subchapter G, Chapter 26, Water Code, and the state
 3-8     coastal discharge contingency plan.
 3-9           Sec. 40.006.  INTERAGENCY COUNCIL.  The commission
3-10     [commissioner] shall from time to time convene a cooperative
3-11     council  comprising the Texas Department of Health, the division of
3-12     emergency management in the office of the governor, the Parks and
3-13     Wildlife Department, the Texas Natural Resource Conservation
3-14     Commission, [the Railroad Commission of Texas,] the Texas Higher
3-15     Education Coordinating Board, and any other state agency authorized
3-16     to participate in unauthorized discharge response operations under
3-17     the state coastal discharge contingency plan.  The commission shall
3-18     appoint a member of the commission to [The commissioner shall]
3-19     serve as chairperson of the council.  The council shall consider
3-20     matters relating to coordination of state prevention, response, and
3-21     cleanup operations related to unauthorized discharges of oil and
3-22     hazardous substances.
3-23           Sec. 40.007.  GENERAL POWERS AND DUTIES.  (a)  The commission
3-24     [commissioner] may promulgate rules necessary and convenient  to
3-25     the administration of this chapter.
3-26           (b)  The commission [commissioner] shall by rule establish
3-27     procedures under Chapter 2001, Government Code, for all hearings
 4-1     required by this chapter.  The commission [commissioner] may
 4-2     administer oaths, receive evidence, issue subpoenas to compel
 4-3     attendance of witnesses and production of evidence related to
 4-4     hearings, and make findings of fact and decisions with respect to
 4-5     administering this chapter.
 4-6           (c)  The commission [commissioner] may contract with any
 4-7     public agency or private person or other entity, including entering
 4-8     into cooperative agreements with the federal government, acquire
 4-9     and dispose of real or personal property, delegate responsibility
4-10     for implementing the requirements of this chapter, and perform any
4-11     other act within or without the boundaries of this state necessary
4-12     to administer this chapter.
4-13           (d)  If the commission [commissioner] finds it necessary to
4-14     enter property to conduct a vessel or terminal facility audit,
4-15     inspection, or drill authorized under this chapter or to respond to
4-16     an actual or threatened unauthorized discharge of oil, the
4-17     commission [commissioner] may enter the property after making a
4-18     reasonable effort to obtain consent to enter the property.
4-19           SECTION 5.  Sections 40.053(a), (b), and (d), Natural
4-20     Resources Code, are amended to read as follows:
4-21           (a)  The commission [commissioner] shall promulgate a state
4-22     coastal discharge contingency plan of response for actual or
4-23     threatened unauthorized discharges of oil and cleanup of pollution
4-24     from such discharges.  In addition, the Texas Natural Resource
4-25     Conservation Commission, in cooperation with the commission
4-26     [commissioner], shall promulgate provisions of the plan relating to
4-27     unauthorized discharges of hazardous substances, and the Parks and
 5-1     Wildlife Department, in cooperation with the commission
 5-2     [commissioner], shall promulgate provisions of the plan relating to
 5-3     the rescue and rehabilitation of aquatic life and wildlife and the
 5-4     habitats on which they depend.  [The commissioner shall cooperate
 5-5     and consult with the Railroad Commission of Texas in promulgating
 5-6     provisions of the plan relating to the exercise of authority by the
 5-7     Railroad Commission of Texas pursuant to Subsection (b) of this
 5-8     section to direct an owner or operator to abate or prevent
 5-9     pollution as a result of an unauthorized discharge of oil.]  The
5-10     plan shall be promulgated in a coordinate manner and adopted in an
5-11     integrated chapter of the Texas Administrative Code.
5-12           (b)  In promulgating the plan, the commission [commissioner]
5-13     and the Texas Natural Resource Conservation Commission shall
5-14     provide for clear designation of responsibilities and avoid
5-15     unnecessary duplication and expense.  [The plan shall provide that,
5-16     in the event of an unauthorized discharge of 240 barrels or less of
5-17     oil from an activity associated with the exploration, development,
5-18     or production of oil or gas, including the transportation of oil or
5-19     gas by pipeline, the Railroad Commission of Texas shall act as
5-20     state-designated on-scene coordinator for abatement, containment,
5-21     removal, and cleanup of the discharge pursuant to Section 91.101 of
5-22     this code, Section 26.131, Water Code, and this chapter.]
5-23           (d)  The commission [commissioner] shall establish regional
5-24     response committees or utilize the area committees established by
5-25     federal law to advise and provide input in the development of
5-26     site-specific discharge contingency response plans.
5-27                 [(1)]  Membership on these committees shall include
 6-1     broad-based representation from local governments, industry,
 6-2     resource agencies, and citizens groups [and shall include staff
 6-3     from the General Land Office].
 6-4                 [(2)]  The committees shall develop regional response
 6-5     recommendations and provide evaluation of response and
 6-6     recommendations for improvement to the commission [commissioner]
 6-7     following an actual or threatened unauthorized discharge.
 6-8           SECTION 6.  Sections 40.152 and 40.153, Natural Resources
 6-9     Code, are amended to read as follows:
6-10           Sec. 40.152.  USE OF FUND.  (a)  Except as provided by
6-11     Subsection (b), money [Money] in the fund may be disbursed only for
6-12     the following purposes [and no others]:
6-13                 (1)  administrative expenses, personnel and training
6-14     expenses, and equipment maintenance and operating costs related to
6-15     implementation and enforcement of this chapter;
6-16                 (2)  response costs related to abatement and
6-17     containment of actual or threatened unauthorized discharges of oil
6-18     incidental to unauthorized discharges of hazardous substances;
6-19                 (3)  response costs and damages related to actual or
6-20     threatened unauthorized discharges of oil;
6-21                 (4)  assessment, restoration, rehabilitation, or
6-22     replacement of or mitigation of damage to natural resources damaged
6-23     by an unauthorized discharge of oil;
6-24                 (5)  in an amount not to exceed $50,000 annually, the
6-25     small spill education program;
6-26                 (6)  in an amount not to exceed $1,250,000 annually,
6-27     interagency contracts under Section 40.302;
 7-1                 (7)  the purchase of response equipment under Section
 7-2     40.105 within two years of the effective date of this chapter, in
 7-3     an amount not to exceed $4 million;  thereafter, for the purchase
 7-4     of equipment to replace equipment that is worn or obsolete;
 7-5                 (8)  an inventory under Section 40.107, to be completed
 7-6     by September 1, 1995, in an amount not to exceed $6 million; and
 7-7                 (9)  other costs and damages authorized by this
 7-8     chapter.
 7-9           (b)  An [; and]
7-10                 [(10)  in an] amount not to exceed the interest
7-11     accruing to the fund annually may be used by the commissioner of
7-12     the General Land Office for[,] erosion response projects under
7-13     Subchapter H, Chapter 33.
7-14           [(b)  There is hereby appropriated from the fund to the
7-15     General Land Office, subject to this section, the amounts specified
7-16     for the purposes of Subdivisions (5) and (6) of Subsection (a) of
7-17     this section, $2.5 million for administrative costs under this
7-18     chapter for the two-year period beginning with the effective date
7-19     of this chapter, and the actual amounts necessary to pay response
7-20     costs and damages as provided in this chapter.]
7-21           Sec. 40.153.  REIMBURSEMENT OF FUND.  The commission
7-22     [commissioner] shall recover to the use of the fund, either from
7-23     persons responsible for the unauthorized discharge or otherwise
7-24     liable or from the federal fund, jointly and severally, all sums
7-25     owed to or expended from the fund.  This section does not apply to
7-26     sums expended under Section 40.152(b) [40.152(a)(10)].
7-27           SECTION 7.  Section 40.161(c), Natural Resources Code, is
 8-1     amended to read as follows:
 8-2           (c)  This section does not apply to a sum expended under
 8-3     Section 40.152(b) [40.152(a)(10)].
 8-4           SECTION 8.  Sections 40.008 and 40.303, Natural Resources
 8-5     Code, are repealed.
 8-6           SECTION 9.  (a)  This Act takes effect September 1, 2001.
 8-7           (b)  On the effective date of this Act, all powers and duties
 8-8     of the General Land Office under Chapter 40, Natural Resources
 8-9     Code, and all obligations, rights, contracts, records, and real or
8-10     personal property of the General Land Office relating to those
8-11     powers and duties are transferred to the Railroad Commission of
8-12     Texas.
8-13           (c)  An obligation payable by the General Land Office from
8-14     the coastal protection fund established by Section 40.151, Natural
8-15     Resources Code, that is transferred by this Act to the Railroad
8-16     Commission of Texas may be paid under applicable law by the
8-17     Railroad Commission of Texas from the unexpended balance of an
8-18     appropriation from the fund made to the General Land Office for the
8-19     state fiscal biennium ending August 31, 2001.
8-20           (d)  An appropriation to the General Land Office for the
8-21     state fiscal biennium beginning September 1, 2001, for the
8-22     performance of a power or duty under Chapter 40, Natural Resources
8-23     Code, transferred under this Act to the Railroad Commission of
8-24     Texas is transferred to the commission on that date.
8-25           (e)  On the effective date of this Act, a person who is
8-26     employed by the General Land Office in a position involving the
8-27     performance of a function under Chapter 40, Natural Resources Code,
 9-1     other than an administrative function is transferred to the
 9-2     Railroad Commission of Texas.  The Railroad Commission of Texas may
 9-3     transfer to the commission a person who is employed by the General
 9-4     Land Office in a position involving the performance of an
 9-5     administrative function under Chapter 40, Natural Resources Code,
 9-6     and whose function approximates that required by the commission to
 9-7     implement this Act.  The commission is not required to post a job
 9-8     vacancy notice for a position involving the performance of an
 9-9     administrative function if it transfers an employee of the General
9-10     Land Office.  If the commission posts a notice for the position,
9-11     the commission may give preference to a person employed in a
9-12     similar position at the General Land Office.