By:  Harris                                            S.B. No. 310
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Railroad
 1-3     Commission of Texas.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Articles 6445a, 6447b, 6447c, and 6447h, Revised
 1-6     Statutes, are amended to read as follows:
 1-7           Art. 6445a.  SUNSET PROVISION.  The Railroad Commission of
 1-8     Texas is subject to Chapter 325, Government Code (Texas Sunset
 1-9     Act).  Unless continued in existence as provided by that chapter,
1-10     the commission is abolished September 1, 2013 [2001].
1-11           Art. 6447b.  EQUAL EMPLOYMENT OPPORTUNITY [EMPLOYEE
1-12     PERFORMANCE].  (a)  The commission [or its designee shall develop
1-13     an intra-agency career ladder program, one part of which shall be
1-14     the intra-agency posting of all nonentry level positions for at
1-15     least 10 days before any public posting.]
1-16           [(b)  The commission or its designee shall develop a system
1-17     of annual performance evaluations based on measurable job tasks.
1-18     All merit pay for commission employees must be based on the system
1-19     established under this subsection.]
1-20           [(c)  The commission] shall prepare and maintain a written
1-21     policy statement that implements [plan to assure implementation of]
1-22     a program of equal employment opportunity to ensure that [whereby]
1-23     all personnel decisions [transactions] are made without regard to
1-24     race, color, disability, sex, religion, age, or national origin.
1-25           (b)  The policy statement must [plan shall] include:
 2-1                 (1)  personnel policies, including policies relating to
 2-2     [plans for] recruitment, evaluation, selection, [appointment,]
 2-3     training, and promotion of personnel, that show the intent of the
 2-4     commission to avoid the unlawful employment practices described by
 2-5     Chapter 21, Labor Code; and
 2-6                 (2)  an analysis of the extent to which the composition
 2-7     of the commission's personnel is in accordance with state and
 2-8     federal law and a description of reasonable methods to achieve
 2-9     compliance with state and federal law.
2-10           (c)  The policy statement must:
2-11                 (1)  be updated annually;
2-12                 (2)  be reviewed by the state Commission on Human
2-13     Rights for compliance with Subsection (b) of this article; and
2-14                 (3)  be filed with the governor's office[, and other
2-15     personnel practices.  The plan shall also include steps reasonably
2-16     designed to overcome any identified under-utilization of minorities
2-17     and women in the commission's work force and shall include
2-18     objectives and goals, timetables for achieving those objectives and
2-19     goals, and assignments of responsibility for their completion.  The
2-20     plan shall be filed with the governor's office within 60 days after
2-21     the effective date of this section, cover an annual period, and be
2-22     updated at least annually.  Progress reports shall be submitted to
2-23     the governor's office within 30 days of November 1 and April 1 of
2-24     each year and shall include the steps the commission has taken
2-25     within the reporting period to comply with this requirement of this
2-26     section].
 3-1           Art. 6447c.  CONFLICT OF INTEREST.  (a)  In this section,
 3-2     "Texas trade association" means a cooperative and voluntarily
 3-3     joined association of business or professional competitors in this
 3-4     state designed to assist its members and its industry or profession
 3-5     in dealing with mutual business or professional problems and in
 3-6     promoting their common interest.
 3-7           (b)  A person may not be an employee of the commission
 3-8     employed in a "bona fide executive, administrative, or professional
 3-9     capacity," as that phrase is used for purposes of establishing an
3-10     exemption to the overtime provisions of the federal Fair Labor
3-11     Standards Act of 1938 (29 U.S.C. Section 201 et seq.) and its
3-12     subsequent amendments, if:
3-13                 (1)  the person is an officer, employee, or paid
3-14     consultant of a Texas trade association in a business or industry
3-15     regulated by the commission; or
3-16                 (2)  the person's spouse is an officer, manager, or
3-17     paid consultant of a Texas [An employee of the commission may not
3-18     be an officer, employee, or paid consultant of a] trade association
3-19     in a business or industry regulated by the commission.
3-20           (c) [(b)]  A person who is required to register as a lobbyist
3-21     under Chapter 305, Government Code, may not act as the general
3-22     counsel to the commission.
3-23           (d) [(c)]  The commission[, as often as necessary,] shall
3-24     provide to members of the commission and to agency employees, as
3-25     often as necessary, information regarding the requirements for
3-26     office or employment under this chapter, including information
 4-1     regarding a person's [employees'] responsibilities under applicable
 4-2     laws relating to standards of conduct for state officers or
 4-3     employees.
 4-4           Art. 6447h.  COMPLAINTS.  (a)  The commission shall maintain
 4-5     a [keep an information] file on [about] each written complaint
 4-6     filed with the commission.  The file must include:
 4-7                 (1)  the name of the person who filed the complaint;
 4-8                 (2)  the date the complaint is received by the
 4-9     commission;
4-10                 (3)  the subject matter of the complaint;
4-11                 (4)  the name of each person contacted in relation to
4-12     the complaint;
4-13                 (5)  a summary of the results of the review or
4-14     investigation of the complaint; and
4-15                 (6)  an explanation of the reason the file was closed,
4-16     if the commission closed the file without taking action other than
4-17     to investigate the complaint.
4-18           (b)  The commission shall provide to the person filing the
4-19     complaint and to each person who is a subject of the complaint a
4-20     copy of the commission's policies and procedures relating to
4-21     complaint investigation and resolution.
4-22           (c)  The [relating to a person who has a license, permit, or
4-23     certificate of public convenience and necessity from the
4-24     commission.]
4-25           [(b)  If a written complaint is filed with the commission
4-26     relating to a person who has a license, permit, or certificate of
 5-1     public convenience and necessity from the] commission, at least [as
 5-2     frequently as] quarterly [and] until final disposition of the
 5-3     complaint, [the commission] shall notify the person filing [parties
 5-4     to] the complaint and each person who is a subject of the complaint
 5-5     of the status of the investigation [complaint] unless the notice
 5-6     would jeopardize an undercover investigation.  [This section does
 5-7     not apply to complaints under Chapter 91, Natural Resources Code.]
 5-8           SECTION 2.  Title 112, Revised Statutes, is amended by adding
 5-9     Articles 6447k, 6447l, 6447m, and 6447n to read as follows:
5-10           Art. 6447k.  SEPARATION OF POLICY-MAKING AND MANAGEMENT
5-11     RESPONSIBILITIES.  The commission shall develop and implement
5-12     policies that clearly separate the policy-making responsibilities
5-13     of the members of the commission and the management
5-14     responsibilities of the staff of the commission.
5-15           Art. 6447l.  PUBLIC PARTICIPATION.  The commission shall
5-16     develop and implement policies that provide the public with a
5-17     reasonable opportunity to appear before the commission and to speak
5-18     on any issue under the jurisdiction of the commission.
5-19           Art. 6447m.  EMPLOYEE INCENTIVE PROGRAM.  The commission
5-20     shall provide to commission employees information and training on
5-21     the benefits and methods of participation in the state employee
5-22     incentive program.
5-23           Art. 6447n.  METHOD OF MAKING PAYMENTS TO COMMISSION.
5-24     (a)  The commission may authorize payment, as prescribed by the
5-25     commission, of regulatory fees, fines, penalties, and charges for
5-26     goods and services by means of an electronic payment method or a
 6-1     credit card issued by a financial institution chartered by a state
 6-2     or the United States or issued by a nationally recognized credit
 6-3     organization approved by the commission.  A payment by the
 6-4     authorized method may be made in person, by telephone, or through
 6-5     the Internet.
 6-6           (b)  The commission may require a person who makes a payment
 6-7     to the commission by means of an electronic payment method or
 6-8     credit card to pay a discount or service charge in an amount
 6-9     reasonable and necessary to reimburse the commission for the costs
6-10     involved in processing the payment.
6-11           (c)  The commission may adopt rules as necessary to implement
6-12     this article.
6-13           SECTION 3.  Section 81.0531, Natural Resources Code, is
6-14     amended by amending Subsections (c) and (d) and adding Subsection
6-15     (e) to read as follows:
6-16           (c)  In determining the amount of the penalty, the commission
6-17     shall consider the permittee's history of previous violations, the
6-18     seriousness of the violation, any hazard to the health or safety of
6-19     the public, and the demonstrated good faith of the person charged.
6-20     In determining the amount of the penalty for a violation of a
6-21     provision of this title or a rule, order, license, permit, or
6-22     certificate that relates to pipeline safety, the commission shall
6-23     consider the guidelines adopted under Subsection (d).
6-24           (d)  The commission by rule shall adopt guidelines to be used
6-25     in determining the amount of the penalty for a violation of a
6-26     provision of this title or a rule, order, license, permit, or
 7-1     certificate that relates to pipeline safety.  The guidelines shall
 7-2     include a penalty calculation worksheet that specifies the typical
 7-3     penalty for certain violations, circumstances justifying
 7-4     enhancement of a penalty and the amount of the enhancement, and
 7-5     circumstances justifying a reduction in a penalty and the amount of
 7-6     the reduction.  The guidelines shall take into account:
 7-7                 (1)  the permittee's history of previous violations,
 7-8     including the number of previous violations;
 7-9                 (2)  the seriousness of the violation and of any
7-10     pollution resulting from the violation;
7-11                 (3)  any hazard to the health or safety of the public;
7-12                 (4)  the degree of culpability;
7-13                 (5)  the demonstrated good faith of the person charged;
7-14     and
7-15                 (6)  any other factor the commission considers
7-16     relevant.
7-17           (e)  A penalty collected under this section shall be
7-18     deposited to the credit of the oil-field cleanup fund.
7-19           SECTION 4.  Subsection (a), Section 81.116, Natural Resources
7-20     Code, is amended to read as follows:
7-21           (a)  An oil-field cleanup regulatory fee is imposed on crude
7-22     petroleum produced in this state in the amount of five-eighths
7-23     [five sixteenths] of one cent on each barrel of 42 standard
7-24     gallons.
7-25           SECTION 5.  Subsection (a), Section 81.117, Natural Resources
7-26     Code, is amended to read as follows:
 8-1           (a)  An oil-field cleanup regulatory fee is imposed on gas
 8-2     initially produced and saved in this state in the amount of
 8-3     one-fifteenth [one thirtieth] of one cent for each thousand cubic
 8-4     feet.
 8-5           SECTION 6.  Section 85.161, Natural Resources Code, is
 8-6     amended to read as follows:
 8-7           Sec. 85.161.  WELL OWNERS AND OPERATORS CERTIFICATES.  The
 8-8     owner or operator of any [an oil or gas] well subject to the
 8-9     jurisdiction of the commission[, before connecting with any oil or
8-10     gas pipeline,] shall secure from the commission a certificate
8-11     showing compliance with the oil or gas conservation laws of the
8-12     state and conservation rules and orders of the commission.
8-13           SECTION 7.  Section 85.2021, Natural Resources Code, is
8-14     amended to read as follows:
8-15           Sec. 85.2021.  DRILLING PERMIT FEE.  (a)  With each
8-16     application or materially amended application for a permit to
8-17     drill, deepen, plug back, or reenter a well, the applicant shall
8-18     submit to the commission a nonrefundable fee of:
8-19                 (1)  $200 [$100] if the total depth of the well is
8-20     2,000 feet or less;
8-21                 (2)  $225 [$125] if the total depth of the well is
8-22     greater than 2,000 feet but less than or equal to 4,000 feet;
8-23                 (3)  $250 [$150] if the total depth of the well is
8-24     greater than 4,000 feet but less than or equal to 9,000 feet;
8-25                 (4)  $300 [$200] if the total depth of the well is
8-26     greater than 9,000 feet.
 9-1           (b)  An applicant shall submit an additional nonrefundable
 9-2     fee of $200 when a Rule 37 spacing or a Rule 38 density exception
 9-3     review is requested.
 9-4           (c)  An applicant shall submit an additional nonrefundable
 9-5     fee of $150 [$50] when requesting that the commission expedite the
 9-6     application for a permit to drill, deepen, plug back, or reenter a
 9-7     well.
 9-8           (d) [(c)]  With each application for an extension of time to
 9-9     plug a well pursuant to commission rules, an applicant shall submit
9-10     to the commission a nonrefundable fee of $300 [$100], unless the
9-11     applicant has filed a bond under Section 91.1041 or Section 91.1042
9-12     of this code.
9-13           (e) [(d)]  All fees collected under this section shall be
9-14     deposited in the state oil-field cleanup fund.
9-15           SECTION 8.  Effective September 1, 2004, Section 91.103,
9-16     Natural Resources Code, is amended to read as follows:
9-17           Sec. 91.103.  PERSONS REQUIRED TO EXECUTE BOND [OR ALTERNATE
9-18     FORM OF FINANCIAL SECURITY].  Any person, including any firm,
9-19     partnership, joint stock association, corporation, or other
9-20     organization, required to file an organization report under Section
9-21     91.142 of this code shall execute and file with the commission a
9-22     bond [or alternate form of financial security].
9-23           SECTION 9.  Subsections (b) and (c), Section 91.104, Natural
9-24     Resources Code, are amended to read as follows:
9-25           (b)  A person required to file a bond under Section 91.103
9-26     may choose to file:
 10-1                (1)  an individual bond as provided under Section
 10-2    91.1041;
 10-3                (2)  a blanket bond as provided under Section 91.1042;
 10-4    or
 10-5                (3)  if the commission finds that individual or blanket
 10-6    bonds as specified in Subdivisions (1) and (2) are not obtainable
 10-7    at reasonable prices, the commission may permit a nonrefundable
 10-8    annual fee of $1,000 [$100], if the person can demonstrate to the
 10-9    commission an acceptable record of compliance with all commission
10-10    rules, orders, licenses, permits, or certificates that relate to
10-11    safety or the prevention or control of pollution for the previous
10-12    48 months and the person and, if a firm, partnership, joint stock
10-13    association, corporation, or other organization, its officers,
10-14    directors, general partners, or owners of more than 25 percent
10-15    ownership interest or any trustee:
10-16                      (A)  has no outstanding violations of such
10-17    commission rules, orders, licenses, permits, or certificates;
10-18                      (B)  has paid all administrative, civil, and
10-19    criminal penalties, if any, relating to any violation of such
10-20    commission rules, orders, licenses, permits, or certificates; and
10-21                      (C)  has paid all reimbursements of any costs and
10-22    expenses incurred by the commission in relation to any violation of
10-23    such commission rules, orders, licenses, permits, or certificates;
10-24    or
10-25                (4)  a nonrefundable annual fee equal to 12-1/2 [three]
10-26    percent of the bond that otherwise would be required[; or]
 11-1                [(5)  to give a first lien on tangible personal
 11-2    property associated with oil and gas production whose salvage value
 11-3    equals the value of an individual bond under Section 91.1041 or the
 11-4    value of a blanket bond under Section 91.1042 that otherwise would
 11-5    be required].
 11-6          (c)  A person who chooses to file a form of financial
 11-7    security other than a bond shall also submit a fee of $300 [$100]
 11-8    for each application to extend the time to plug a well in
 11-9    accordance with Section 85.2021 [of this code].
11-10          SECTION 10.  Effective September 1, 2004, Section 91.104,
11-11    Natural Resources Code, is amended to read as follows:
11-12          Sec. 91.104.  BONDS [AND ALTERNATE FORMS OF FINANCIAL
11-13    SECURITY].  (a)  The commission shall require a bond [or an
11-14    alternate form of financial security] to be filed with the
11-15    commission as provided by Subsection (b) of this section.
11-16          (b)  A person required to file a bond under Section 91.103
11-17    may choose to file:
11-18                (1)  an individual bond as provided under Section
11-19    91.1041; or
11-20                (2)  a blanket bond as provided under Section 91.1042[;]
11-21                [(3)  a nonrefundable annual fee of $100, if the person
11-22    can demonstrate to the commission an acceptable record of
11-23    compliance with all commission rules, orders, licenses, permits, or
11-24    certificates that relate to safety or the prevention or control of
11-25    pollution for the previous 48 months and the person and, if a firm,
11-26    partnership, joint stock association, corporation, or other
 12-1    organization, its officers, directors, general partners, or owners
 12-2    of more than 25 percent ownership interest or any trustee:]
 12-3                      [(A)  has no outstanding violations of such
 12-4    commission rules, orders, licenses, permits, or certificates;]
 12-5                      [(B)  has paid all administrative, civil, and
 12-6    criminal penalties, if any, relating to any violation of such
 12-7    commission rules, orders, licenses, permits, or certificates; and]
 12-8                      [(C)  has paid all reimbursements of any costs
 12-9    and expenses incurred by the commission in relation to any
12-10    violation of such commission rules, orders, licenses, permits, or
12-11    certificates;]
12-12                [(4)  a nonrefundable annual fee equal to three percent
12-13    of the bond that otherwise would be required; or]
12-14                [(5)  to give a first lien on tangible personal
12-15    property associated with oil and gas production whose salvage value
12-16    equals the value of an individual bond under Section 91.1041 or the
12-17    value of a blanket bond under Section 91.1042 that otherwise would
12-18    be required].
12-19          [(c)  A person who chooses to file a form of financial
12-20    security other than a bond shall also submit a fee of $100 for each
12-21    application to extend the time to plug a well in accordance with
12-22    Section 85.2021 of this code.]
12-23          SECTION 11.  Sections 91.1041 and 91.1042, Natural Resources
12-24    Code, are amended to read as follows:
12-25          Sec. 91.1041.  INDIVIDUAL BOND.  (a)  A person required to
12-26    file a bond under Section 91.103 who operates one or more wells may
 13-1    file a bond in an amount equal to $2 for each foot of well depth
 13-2    for each well.
 13-3          (b)  Notwithstanding Subsection (a), the commission by rule
 13-4    shall set the amount of the bond for an operator of one or more bay
 13-5    or offshore wells at a reasonable amount that exceeds the amount
 13-6    provided by Subsection (a).
 13-7          Sec. 91.1042.  BLANKET BOND.  (a)  A person required to file
 13-8    a bond under Section 91.103 may file a blanket bond to cover all
 13-9    wells and operations for which a bond is required as follows:
13-10                (1)  a person who operates 10 or fewer wells or
13-11    performs other operations shall file a $25,000 blanket bond;
13-12                (2)  a person who operates more than 10 but fewer than
13-13    100 wells shall file a $50,000 blanket bond; and
13-14                (3)  a person who operates 100 or more wells shall file
13-15    a $250,000 blanket bond.
13-16          (b)  Notwithstanding Subsection (a), the commission by rule
13-17    shall set the amount of the bond for an operator of bay or offshore
13-18    wells at a reasonable amount that exceeds the amount provided by
13-19    Subsection (a)(1), (2), or (3), as applicable.
13-20          SECTION 12.  Effective September 1, 2004, Section 91.107,
13-21    Natural Resources Code, is amended to read as follows:
13-22          Sec. 91.107.  NEW BOND [OR ALTERNATE FORM OF FINANCIAL
13-23    SECURITY].  If a well covered by a bond [or alternate form of
13-24    financial security] is transferred, sold, or assigned by its
13-25    operator, the commission shall require the party acquiring the well
13-26    to file a new bond [or alternate form of financial security] as
 14-1    provided by this subchapter, and the bond [or alternate form of
 14-2    financial security] of the prior operator shall continue to be
 14-3    required and to remain in effect until the new bond [or alternate
 14-4    form of financial security] is provided or the commission
 14-5    determines that the bond [financial security] previously submitted
 14-6    to the commission by the person acquiring the well complies with
 14-7    this subchapter.
 14-8          SECTION 13.  Section 91.111, Natural Resources Code, is
 14-9    amended by amending Subsections (b) and (c) and adding Subsection
14-10    (e) to read as follows:
14-11          (b)  The commission shall certify to the comptroller the date
14-12    on which the balance in the fund equals or exceeds $20 [$10]
14-13    million.  The oil-field cleanup regulatory fees on oil and gas
14-14    shall not be collected or required to be paid on or after the first
14-15    day of the second month following the certification, except that
14-16    the comptroller shall resume collecting the fees on receipt of a
14-17    commission certification that the fund has fallen below $10 [$6]
14-18    million.  The comptroller shall continue collecting the fees until
14-19    collections are again suspended in the manner provided by this
14-20    subsection.
14-21          (c)  The fund consists of:
14-22                (1)  penalties imposed under Section 85.381 for
14-23    violation of a law, order, or rule relating to well plugging
14-24    requirements;
14-25                (2)  proceeds from bonds and other financial assurances
14-26    required by this chapter, subject to the refund provisions of
 15-1    Section 91.1091;
 15-2                (3)  private contributions, including contributions
 15-3    made under Section 89.084;
 15-4                (4)  expenses collected under Section 89.083;
 15-5                (5)  fees imposed under Section 85.2021;
 15-6                (6)  civil penalties collected for violations of
 15-7    Chapter 89 or of rules or orders relating to plugging that are
 15-8    adopted under this code;
 15-9                (7)  proceeds collected under Sections 89.085 and
15-10    91.115;
15-11                (8)  interest earned on the funds deposited in the
15-12    fund;
15-13                (9)  fees collected under Section 91.104;
15-14                (10)  civil penalties or costs recovered under Section
15-15    91.457 or 91.459;
15-16                (11)  oil and gas waste hauler permit application fees
15-17    collected under Section 29.015, Water Code;
15-18                (12)  costs recovered under Section 91.113(f);
15-19                (13)  hazardous oil and gas waste generation fees
15-20    collected under Section 91.605;
15-21                (14)  oil-field cleanup regulatory fees on oil
15-22    collected under Section 81.116;
15-23                (15)  oil-field cleanup regulatory fees on gas
15-24    collected under Section 81.117;
15-25                (16)  fees for a reissued certificate collected under
15-26    Section 85.167;
 16-1                (17)  fees collected under Section 91.1013;
 16-2                (18)  fees collected under Section 89.088;
 16-3                (19)  penalties collected under Section 81.0531; [and]
 16-4                (20)  fees collected under Section 91.142;
 16-5                (21)  fees collected under Section 91.1132;
 16-6                (22)  fees collected under Section 81.0521; and
 16-7                (23)  legislative appropriations.
 16-8          (e)  The commission, through the legislative appropriations
 16-9    request process, shall establish specific performance goals for the
16-10    oil-field cleanup fund for the next biennium, including goals for
16-11    the number of:
16-12                (1)  site investigations and environmental assessments
16-13    to be conducted;
16-14                (2)  abandoned wells to be plugged; and
16-15                (3)  surface locations to be remediated.
16-16          SECTION 14.  Subsection (b), Section 91.112, Natural
16-17    Resources Code, is amended to read as follows:
16-18          (b)  The commission shall submit to the legislature and make
16-19    available to the public, annually, a report that reviews the extent
16-20    to which money provided under Section 91.111 has enabled the
16-21    commission to better protect the environment and enhance the income
16-22    of the oil-field cleanup fund.  The report shall include:
16-23                (1)  the number of wells plugged, by region;
16-24                (2)  the number of wells abandoned, by region;
16-25                (3)  the number of inactive wells not currently in
16-26    compliance with commission rules, by region;
 17-1                (4)  the status of enforcement proceedings for all
 17-2    wells in violation of commission rules and the time period during
 17-3    which the wells have been in violation, by region in which the
 17-4    wells are located;
 17-5                (5)  the number of surface locations remediated, by
 17-6    region;
 17-7                (6)  a detailed accounting of expenditures of money in
 17-8    the fund, including expenditures for site investigations and
 17-9    environmental assessments, plugging of abandoned wells, remediation
17-10    of surface locations, and staff salaries and other administrative
17-11    expenses;
17-12                (7)  the method by which the commission sets priorities
17-13    by which it determines the order in which abandoned wells are
17-14    plugged;
17-15                (8) [(6)]  a projection of the amount of money needed
17-16    for the next biennium for conducting site investigations and
17-17    environmental assessments, plugging abandoned wells, and
17-18    remediating surface locations; and
17-19                (9) [(7)]  the status of implementation of the
17-20    provisions of Section 89.085 relating to possession and sale of
17-21    equipment to recover plugging costs.
17-22          SECTION 15.  Subchapter D, Chapter 91, Natural Resources
17-23    Code, is amended by adding Sections 91.1131 and 91.1132 to read as
17-24    follows:
17-25          Sec. 91.1131.  RISK ASSESSMENT STANDARDS; PRIORITIZATION OF
17-26    HIGH-RISK WELLS.  (a)  The commission by rule shall establish risk
 18-1    assessment as the guide for:
 18-2                (1)  conducting site investigations and environmental
 18-3    assessments; and
 18-4                (2)  controlling and cleaning up oil and gas wastes and
 18-5    other substances and materials.
 18-6          (b)  Rules adopted under this section must provide for:
 18-7                (1)  determining whether an actual or potential risk
 18-8    exists at a site;
 18-9                (2)  screening contaminants at the site to identify
18-10    those that pose a risk;
18-11                (3)  developing cleanup standards based on
18-12    contamination levels that are protective of human health and the
18-13    environment and that preserve the active and productive use of the
18-14    land; and
18-15                (4)  establishing a reporting mechanism for informing
18-16    the commission regarding specific remediation activities.
18-17          (c)  The commission by rule shall develop a system for:
18-18                (1)  identifying abandoned wells that pose a high risk
18-19    of contaminating surface water or groundwater;
18-20                (2)  periodically testing high-risk wells by conducting
18-21    a fluid level test or, if necessary, a pressure test; and
18-22                (3)  giving priority to plugging high-risk wells with
18-23    compromised casings.
18-24          Sec. 91.1132.  VOLUNTARY CLEANUP PROGRAM.  (a)  The
18-25    commission by rule shall establish a voluntary cleanup program
18-26    under which a person who is not a responsible person as defined by
 19-1    Section 91.113 and who cleans up oil and gas wastes or other
 19-2    substances or materials in accordance with an agreement with the
 19-3    commission may receive from the commission a certificate evidencing
 19-4    completion of the cleanup.  On receipt of the certificate, the
 19-5    person is released from all liability to the commission for cleanup
 19-6    of the site covered by the certificate.
 19-7          (b)  A person who desires to participate in the program must
 19-8    submit to the commission:
 19-9                (1)  an application; and
19-10                (2)  an application fee in an amount set by commission
19-11    rule.
19-12          (c)  The staff of the commission shall:
19-13                (1)  assist a participant in the program in developing
19-14    a cleanup plan; and
19-15                (2)  provide technical oversight during the cleanup.
19-16          (d)  The program established under this section must be
19-17    consistent with rules adopted under Section 91.1131.
19-18          SECTION 16.  Subsection (e), Section 91.142, Natural
19-19    Resources Code, is amended to read as follows:
19-20          (e)(1)  The commission shall require an entity described by
19-21    Subsection (a) of this section to refile an organization report
19-22    annually according to a schedule established by the commission.
19-23    The maximum annual fee for any single organization report filing
19-24    shall be $1,000.
19-25                (2)  The commission shall require the following annual
19-26    fees with the filing of each organization report:  $300 for
 20-1    operators with 1 to 25 wells, $500 for operators with 26 to 100
 20-2    wells, and $1,000 for operators with 101 or more wells.
 20-3                (3)  For operators of natural gas pipelines as
 20-4    classified by the commission, the commission shall require an
 20-5    annual fee with the filing of each organizational report of $100.
 20-6                (4)  For operators of service activities or facilities
 20-7    including liquids pipelines as classified by the commission without
 20-8    wells, the commission shall require an annual fee with the filing
 20-9    of each organizational report of no less than $300 and no more than
20-10    $500 as determined by the commission.
20-11                (5)  For operators of both service activities or
20-12    facilities including liquids pipelines and wells, as classified by
20-13    the commission, the commission shall require an annual fee with the
20-14    filing of each organizational report based on the sum of the fees
20-15    required by this subsection of no less than $300 and no more than
20-16    $1,000 as determined by the commission.
20-17          SECTION 17.  Section 81.0521, Natural Resources Code, is
20-18    amended to read as follows:
20-19          Sec. 81.0521.  FEE FOR APPLICATION FOR EXCEPTION TO RAILROAD
20-20    COMMISSION RULE.  (a)  With each application for an exception to
20-21    any commission rule contained in Chapter 3 of Part I of Title 16 of
20-22    the Texas Administrative Code, the applicant shall submit to the
20-23    commission a fee of $150 [$50].
20-24          (b)  The application fee for an exception to any commission
20-25    rule may not be refunded.
20-26          (c)  Two-thirds of the proceeds from this fee, including any
 21-1    penalties collected in connection with the fee, shall be deposited
 21-2    to the oil-field cleanup fund as provided by Section 91.111.
 21-3          SECTION 18.  Subsections (a) and (b), Section 91.1013,
 21-4    Natural Resources Code, are amended to read as follows:
 21-5          (a)  With each application for a fluid injection well permit,
 21-6    the applicant shall submit to the commission a nonrefundable fee of
 21-7    $200 [$100].  In this section, "fluid injection well" means any
 21-8    well used to inject fluid or gas into the ground in connection with
 21-9    the exploration or production of oil or gas other than an oil and
21-10    gas waste disposal well regulated by the commission pursuant to
21-11    Chapter 27, Water Code.
21-12          (b)  With each application for a permit to discharge to
21-13    surface water under this chapter and commission rules, other than a
21-14    permit for a discharge that meets National Pollutant Discharge
21-15    Elimination System requirements for agricultural or wildlife use,
21-16    the applicant shall submit to the commission a nonrefundable fee of
21-17    $300 [$200].
21-18          SECTION 19.  Sections 113.011, 113.014, 113.015, 113.0511,
21-19    and 113.082, Natural Resources Code, are amended to read as
21-20    follows:
21-21          Sec. 113.011.  REGULATION OF LIQUEFIED PETROLEUM GAS
21-22    ACTIVITIES.  The commission shall administer and enforce the laws
21-23    of this state and the rules and standards of the commission
21-24    relating to liquefied petroleum gas [DIVISION.  There is created
21-25    and organized a separate and distinct division of the commission
21-26    known as the liquefied petroleum gas division or the LPG division].
 22-1          Sec. 113.014.  EMPLOYEES.  Sufficient employees shall be
 22-2    provided [to the LPG division] for the enforcement of this chapter.
 22-3          Sec. 113.015.  FUNDS FOR FINANCING REGULATION OF LPG
 22-4    ACTIVITIES [DIVISION].  The commission shall look only to the
 22-5    revenue derived from the operation of this chapter and appropriated
 22-6    by the legislature for expenses of regulating [conducting the]
 22-7    liquefied petroleum gas activities [division] and administering
 22-8    this chapter.  [The LPG examination fund is established in the
 22-9    state treasury to be used to pay the costs of training, including
22-10    examinations, seminars, and continuing education programs,
22-11    administered or sponsored by the commission pursuant to Sections
22-12    113.087 and 113.088 of this code.  All fees collected pursuant to
22-13    Sections 113.088 and 113.090(c) of this code relating to training
22-14    or registration for qualification to perform LPG-related activities
22-15    shall be credited to this fund.  There is hereby appropriated from
22-16    the fund to the commission all such fees collected.]
22-17          Sec. 113.0511.  LIMITATIONS ON RULEMAKING AUTHORITY.
22-18    (a)  The commission may not adopt rules restricting advertising or
22-19    competitive bidding [or advertising] by a licensee [person
22-20    regulated by the commission] except to prohibit false, misleading,
22-21    or deceptive practices [by the person].
22-22          (b)  In its [The commission may not include in any] rules to
22-23    prohibit false, misleading, or deceptive practices, the commission
22-24    may not include [by a person regulated by the commission] a rule
22-25    that:
22-26                (1)  restricts the [person's] use of any medium for
 23-1    advertising;
 23-2                (2)  restricts the use of a licensee's [person's]
 23-3    personal appearance or [use of his] voice in an advertisement;
 23-4                (3)  relates to the size or duration of an
 23-5    advertisement by the licensee [person]; or
 23-6                (4)  restricts the licensee's [person's] advertisement
 23-7    under a trade name.
 23-8          Sec. 113.082.  CATEGORIES OF LPG ACTIVITIES [LICENSEE]; FEES.
 23-9    (a)  A prospective licensee in LPG may apply to the commission [LPG
23-10    division] for a license to engage in any one or more of the
23-11    following categories of LPG activities:
23-12                (1) [(A)]  container manufacturers/fabricators:  the
23-13    manufacture, fabrication, assembly, repair, installation,
23-14    subframing, testing, and sale of LPG containers, including LPG
23-15    motor or mobile fuel containers and systems, and the repair and
23-16    installation of transport and transfer systems[; and the category
23-17    "A" application and original license fee is an amount not to exceed
23-18    $1,000 as determined by the commission; the annual renewal license
23-19    fee is an amount not to exceed $600 as determined by the
23-20    commission];
23-21                (2) [(B)]  transport outfitters:  the subframing,
23-22    testing, and sale of LPG transport containers, the testing of LPG
23-23    storage containers, the installation, testing, and sale of LPG
23-24    motor or mobile fuel containers and systems, and the installation
23-25    and repair of transport systems, and motor or mobile fuel systems[;
23-26    the category "B" application and original license fee is an amount
 24-1    not to exceed $400 as determined by the commission; the annual
 24-2    renewal license fee is an amount not to exceed $200 as determined
 24-3    by the commission];
 24-4                (3) [(C)]  carriers:  the transportation of LPG by
 24-5    transport, including the loading and unloading of LPG, and the
 24-6    installation and repair of transport systems[; the category "C"
 24-7    application and original license fee is an amount not to exceed
 24-8    $1,000 as determined by the commission; the annual renewal license
 24-9    fee is an amount not to exceed $300 as determined by the
24-10    commission];
24-11                (4) [(D)]  general installers and repairmen:  the sale,
24-12    service, and installation of containers, excluding motor fuel
24-13    containers, and the service, installation, and repair of piping,
24-14    certain appliances as defined by rule, excluding recreational
24-15    vehicle appliances and LPG systems, excluding motor fuel and
24-16    recreational vehicle systems[; the category "D" application and
24-17    original license fee is an amount not to exceed $100 as determined
24-18    by the commission; the annual renewal license fee is an amount not
24-19    to exceed $70 as determined by the commission];
24-20                (5) [(E)]  retail and wholesale dealers:  the storage,
24-21    sale, transportation, and distribution of LPG at retail and
24-22    wholesale, and all other activities included in this section except
24-23    the manufacture, fabrication, assembly, repair, subframing, and
24-24    testing of LPG containers, and except the sale and installation of
24-25    LPG motor or mobile fuel systems that have an engine with a rating
24-26    of more than 25 horsepower[; the category "E" application and
 25-1    original license fee is an amount not to exceed $750 as determined
 25-2    by the commission; the annual renewal license fee is an amount not
 25-3    to exceed $300 as determined by the commission];
 25-4                (6) [(F)]  cylinder filling:  the operation of a
 25-5    cylinder-filling facility, including cylinder filling, the sale of
 25-6    LPG in cylinders, and the replacement of a cylinder valve[; the
 25-7    category "F" application and original license fee is an amount not
 25-8    to exceed $100 as determined by the commission; the annual renewal
 25-9    license fee is an amount not to exceed $50 as determined by the
25-10    commission];
25-11                (7) [(G)]  service station:  the operation of an LPG
25-12    service station filling ASME containers designed for motor and
25-13    mobile fuel[; the category "G" application and original license fee
25-14    is an amount not to exceed $100 as determined by the commission;
25-15    the annual renewal license fee is an amount not to exceed $50 as
25-16    determined by the commission];
25-17                (8) [(H)]  cylinder dealers:  the transportation and
25-18    sale of LPG in cylinders[; the category "H" application and
25-19    original license fee is an amount not to exceed $1,000 as
25-20    determined by the commission; the annual renewal license fee is an
25-21    amount not to exceed $300 as determined by the commission];
25-22                (9) [(I)]  service station and cylinder filling:  any
25-23    service station and cylinder activity set out in Subdivisions (6)
25-24    and (7) [categories "F" and "G" of this section; the category "I"
25-25    application and original license fee is an amount not to exceed
25-26    $150 as determined by the commission; the annual renewal license
 26-1    fee is an amount not to exceed $70 as determined by the
 26-2    commission];
 26-3                (10) [(J)]  service station and cylinder facilities:
 26-4    the operation of a cylinder-filling facility, including cylinder
 26-5    filling and the sale, transportation, installation, and connection
 26-6    of LPG in cylinders, the replacement of cylinder valves, and the
 26-7    operation of an LPG service station as set out in Subdivision (7)
 26-8    [category "G"; the category "J" application and original license
 26-9    fee is an amount not to exceed $1,000 as determined by the
26-10    commission; the annual renewal license fee is an amount not to
26-11    exceed $300 as determined by the commission];
26-12                (11) [(K)]  distribution system:  the sale and
26-13    distribution of LPG through mains or pipes and the installation and
26-14    repair of LPG systems[; the category "K" application and original
26-15    license fee is an amount not to exceed $1,000 as determined by the
26-16    commission; the annual renewal license fee is an amount not to
26-17    exceed $300 as determined by the commission];
26-18                (12) [(L)]  engine fuel:  the sale and installation of
26-19    LPG motor or mobile fuel containers, and the sale and installation
26-20    of LPG motor or mobile fuel systems[; the category "L" application
26-21    and original license fee is an amount not to exceed $100 as
26-22    determined by the commission; the annual renewal license fee is an
26-23    amount not to exceed $50 as determined by the commission];
26-24                (13) [(M)]  recreational vehicle installers and
26-25    repairmen: the sale, service, and installation of recreational
26-26    vehicle containers, and the installation, repair, and service of
 27-1    recreational vehicle appliances, piping, and LPG systems, including
 27-2    recreational vehicle motor or mobile fuel systems and containers[;
 27-3    the category "M" application and original license fee is an amount
 27-4    not to exceed $100 as determined by the commission; the annual
 27-5    renewal license fee is an amount not to exceed $70 as determined by
 27-6    the commission];
 27-7                (14) [(N)]  manufactured housing installers and
 27-8    repairmen: the service and installation of containers that supply
 27-9    fuel to manufactured housing, and the installation, repair, and
27-10    service of appliances and piping systems for manufactured housing[;
27-11    the category "N" application and original license fee is an amount
27-12    not to exceed $100 as determined by the commission; the annual
27-13    renewal license fee is an amount not to exceed $70 as determined by
27-14    the commission];
27-15                (15) [(O)]  testing laboratory:  the testing of an
27-16    LP-gas container, LP-gas motor fuel systems or mobile fuel systems,
27-17    transfer systems, and transport systems for the purpose of
27-18    determining the safety of the container or systems for LP-gas
27-19    service, including the necessary installation, disconnection,
27-20    reconnecting, testing, and repair of LPG motor fuel systems or
27-21    mobile fuel systems, transfer systems, and transport systems
27-22    involved in the testing of containers; [the category "O"
27-23    application and original license fee is an amount not to exceed
27-24    $400 as determined by the commission; the annual renewal license
27-25    fee is an amount not to exceed $100 as determined by the
27-26    commission;] or
 28-1                (16) [(P)]  portable cylinder exchange:  the operation
 28-2    of a portable cylinder exchange service, where the sale of LP-gas
 28-3    is within a portable cylinder with an LP-gas capacity not to exceed
 28-4    21 pounds; the portable cylinders are not filled on site, and no
 28-5    other LP-gas activity requiring a license is conducted[; the
 28-6    category "P" application and original license fee is an amount not
 28-7    to exceed $100 as determined by the commission; the annual renewal
 28-8    license fee is an amount not to exceed $50 as determined by the
 28-9    commission].
28-10          (b)  The commission by rule shall establish reasonable
28-11    application and original license fees and renewal fees for each
28-12    type of license listed in this section.
28-13          SECTION 20.  Subsections (b) and (c), Section 113.084,
28-14    Natural Resources Code, are amended to read as follows:
28-15          (b)  A prospective licensee shall submit the required
28-16    application together with the original nonrefundable license fee
28-17    established by the commission under [required by] Section 113.082
28-18    [of this code] for each type of license [category] for which an [a
28-19    license] application is made.  The applicant shall submit
28-20    additional information and data with each application as the
28-21    commission may reasonably require.
28-22          (c)  A licensee shall submit the nonrefundable renewal fee
28-23    for each type of [category for which] license [is] sought along
28-24    with information and data the commission may reasonably require.
28-25          SECTION 21.  Section 113.087, Natural Resources Code, is
28-26    amended by amending Subsections (b), (c), and (i) through (m) and
 29-1    adding Subsections (n) and (o) to read as follows:
 29-2          (b)  Before license issuance, the commission shall require
 29-3    the individual designated as the licensee's representative to the
 29-4    commission to provide good and sufficient proof through examination
 29-5    prepared and administered by the commission of working knowledge of
 29-6    this chapter and rules of the commission which affect the type
 29-7    [category] of license for which application is made.  Thereafter,
 29-8    each licensee shall maintain a qualified representative at all
 29-9    times.
29-10          (c)  Each individual who will be actively supervising those
29-11    operations requiring any license under this chapter at any outlet
29-12    or location, as designated by the commission, shall be required to
29-13    provide good and sufficient proof through examination prepared and
29-14    administered by the commission that the supervisor has a working
29-15    knowledge of the safety requirements and penalties in this chapter
29-16    and the rules of the commission which apply to that type [category]
29-17    of license.
29-18          (i)  Not later than the 30th day after the date a person
29-19    takes a licensing [on which an] examination [is administered] under
29-20    this chapter [section], the commission shall notify the person
29-21    [each examinee] of the results of the examination.
29-22          (j)  If the examination is graded or reviewed by a testing
29-23    service:
29-24                (1)  the commission shall notify the person of the
29-25    results of the examination not later than the 14th day after the
29-26    date the commission receives the results from the testing service;
 30-1    and
 30-2                (2)  if notice of the examination results will be
 30-3    delayed for longer than 90 days after the examination date, the
 30-4    commission shall notify the person [examinee] of the reason for the
 30-5    delay before the 90th day.
 30-6          (k)  The commission may require a testing service to notify a
 30-7    person of the results of the person's examination.
 30-8          (l) [(j)]  If requested in writing by a person who fails a
 30-9    [the] licensing examination administered under this chapter
30-10    [section], the commission shall furnish the person with an analysis
30-11    of the person's performance on the examination.
30-12          (m) [(k)]  The commission, by appropriate rule, shall [may]
30-13    require, in addition to examination requirements as set out in
30-14    Subsections (b), (c), and (d) of this section:
30-15                (1)  an examination for technical competence that is
30-16    validated by a recognized educational testing organization or
30-17    similar organization; or
30-18                (2)  attendance at approved academic, trade,
30-19    professional, or commission-sponsored seminars, other continuing
30-20    education programs, and periodic reexaminations.
30-21          (n) [(l)]  Prior to qualifying an individual to perform
30-22    LP-gas work, the commission may establish by rule an initial course
30-23    of instruction for any person who has not yet passed the [category
30-24    of] examination for the LPG activity for which the person seeks
30-25    qualification; for any person who has not maintained qualified
30-26    status, as defined by rule; and for any person whose certification
 31-1    has been revoked pursuant to Subchapter F of this code.  If an
 31-2    initial course of instruction is established by the commission, it
 31-3    shall be available at least once every 180 [90] days.
 31-4          (o) [(m)]  The commission by rule may exempt from any
 31-5    provision of this section:
 31-6                (1)  a journeyman or master plumber licensed by the
 31-7    Texas State Board of Plumbing Examiners;
 31-8                (2)  a person licensed under the Air Conditioning and
 31-9    Refrigeration Contractor License Law (Article 8861, Vernon's Texas
31-10    Civil Statutes); or
31-11                (3)  company representatives, operations supervisors,
31-12    or employees of a testing laboratory that was registered under
31-13    Section 113.135 prior to the effective date of this subsection.
31-14          SECTION 22.  Subsections (a) and (c), Section 113.089,
31-15    Natural Resources Code, are amended to read as follows:
31-16          (a)  If application is made for a license under [category "E"
31-17    of] Section 113.082(a)(5) [113.082 of this code] or for any other
31-18    type of license [category] specified by commission rule, the
31-19    commission, in addition to other requirements, shall have an actual
31-20    inspection conducted of any and all facilities, bulk storage
31-21    equipment, transportation equipment, and dispensing equipment of
31-22    the applicant to verify satisfactory compliance with all current
31-23    safety laws, rules, and practices.  The inspection may be waived by
31-24    the commission on an application resulting solely from a change in
31-25    legal entities under which a current licensee operates.
31-26          (c)  A [category "E"] license under Section 113.082(a)(5) and
 32-1    any other type of license specified by commission rule shall not be
 32-2    issued until the inspection under Subsection (a) of this section
 32-3    verifies the applicant to be in satisfactory compliance with all
 32-4    current safety laws, rules, and practices.
 32-5          SECTION 23.  Subsections (a) and (b), Section 113.090,
 32-6    Natural Resources Code, are amended to read as follows:
 32-7          (a)  The commission by rule may establish reasonable fees for
 32-8    the review of site applications [examination of plans and
 32-9    specifications] related to the installation of containers when site
32-10    applications [plans and specifications] are reviewed by the
32-11    commission before such installation is placed into LP-gas service.
32-12          (b)  The commission by rule may establish reasonable fees for
32-13    recording the location of containers at public buildings and
32-14    commercial installations when prior approval of site applications
32-15    [plans and specifications] is not required.
32-16          SECTION 24.  Subsections (b), (c), and (d), Section 113.091,
32-17    Natural Resources Code, are amended to read as follows:
32-18          (b)  Within 30 days of the notice of denial, an applicant for
32-19    license under this chapter who is denied a license may request a
32-20    hearing to determine whether or not the applicant has complied in
32-21    all respects with the licensing procedure applicable to each type
32-22    [the category or categories] of license sought.  The applicant's
32-23    request for hearing must be in writing and delivered to the
32-24    commission [director of the LP-gas division].
32-25          (c)  A hearing to determine an applicant's compliance with
32-26    the licensing procedure applicable to each type [the category or
 33-1    categories] of license sought must be scheduled within 30 days
 33-2    following receipt of a request under Subsection (b) of this
 33-3    section.
 33-4          (d)  If the record made at the hearing supports the
 33-5    applicant's claim, the commission shall enter an order in its
 33-6    records to that effect, noting each type of license to [the
 33-7    category or categories for] which the applicant is found entitled
 33-8    [to be licensed], and the commission shall have the license or
 33-9    licenses issued.  If the applicant is found unqualified, the
33-10    commission shall likewise enter an order in its records to that
33-11    effect, and no license may be issued to the applicant.
33-12          SECTION 25.  Section 113.093, Natural Resources Code, is
33-13    amended to read as follows:
33-14          Sec. 113.093.  LICENSE RENEWAL.  (a)  A person who is
33-15    otherwise eligible to renew a license may renew an unexpired
33-16    license by paying the required [issued pursuant to this chapter is
33-17    renewable on the timely payment or tender of the] renewal [license]
33-18    fee to the commission before the expiration date of the license
33-19    [each year].  A person whose license has expired may not engage in
33-20    activities that require a license until the license has been
33-21    renewed.
33-22          (b)  A person whose [If a person's] license has been expired
33-23    for [not longer than] 90 days or less[, the person] may renew the
33-24    license by paying to the commission a [the required] renewal fee
33-25    that is equal to 1-1/2 times the normally required [and a fee that
33-26    is one-half of the amount of the] renewal fee [for the license].
 34-1          (c)  A person whose [If a person's] license has been expired
 34-2    for more [longer] than 90 days but less than one year [two years,
 34-3    the person] may renew the license by paying to the commission a
 34-4    [all unpaid] renewal [fees and a] fee that is equal to two times
 34-5    the normally required [the amount of the unpaid] renewal fee [fees
 34-6    for the license].
 34-7          (d)  A person whose [If a person's] license has been expired
 34-8    for one year [two years] or more [longer, the person] may not renew
 34-9    the license.  The person may obtain a new license by complying with
34-10    the requirements and procedures, including the examination
34-11    requirements, for obtaining an original license.
34-12          (e)  A person who was licensed in this state, moved to
34-13    another state, and is currently licensed and has been in practice
34-14    in the other state for the two years preceding the date of
34-15    application may obtain a new license without reexamination.  The
34-16    person must pay to the commission a fee that is equal to two times
34-17    the normally required renewal fee for the license.
34-18          (f)  Not later than the 30th day before the date a person's
34-19    license is scheduled to expire, the commission shall send written
34-20    notice of the impending expiration to the person at the person's
34-21    last known address according to the records of the commission.
34-22          (g)  A renewal license will be issued to a licensee as soon
34-23    as is practicable after compliance with this section, and
34-24    fulfillment of insurance, examination, and seminar requirements
34-25    established by this chapter, and submission of any information and
34-26    data the commission may reasonably require.
 35-1          (h) [(f)]  Renewal [license] fees shall be nonrefundable.
 35-2          [(g)  At least 15 days before the expiration of a person's
 35-3    license the commission shall notify the person in writing of the
 35-4    impending license expiration and shall attempt to obtain from the
 35-5    person a signed receipt confirming receipt of the notice.]
 35-6          SECTION 26.  Subchapter D, Chapter 113, Natural Resources
 35-7    Code, is amended by adding Section 113.096 to read as follows:
 35-8          Sec. 113.096.  PROVISIONAL LICENSE.  (a)  The commission may
 35-9    issue a provisional license to an applicant currently licensed in
35-10    another jurisdiction who seeks a license in this state and who:
35-11                (1)  has been licensed in good standing for at least
35-12    two years in another jurisdiction, including a foreign country,
35-13    that has licensing requirements substantially equivalent to the
35-14    requirements of this chapter;
35-15                (2)  has passed a national or other examination
35-16    recognized by the commission relating to the activities regulated
35-17    under this chapter; and
35-18                (3)  is sponsored by a person licensed by the
35-19    commission under this chapter with whom the provisional license
35-20    holder will practice during the time the person holds a provisional
35-21    license.
35-22          (b)  The commission may waive the requirement of Subsection
35-23    (a)(3) for an applicant if the commission determines that
35-24    compliance with that subsection would be a hardship to the
35-25    applicant.
35-26          (c)  A provisional license is valid until the date the
 36-1    commission approves or denies the provisional license holder's
 36-2    application for a license.  The commission shall issue a license
 36-3    under this chapter to the provisional license holder if:
 36-4                (1)  the provisional license holder is eligible to be
 36-5    licensed under Section 113.095; or
 36-6                (2)  the provisional license holder:
 36-7                      (A)  passes the part of the examination under
 36-8    Section 113.087 that relates to the applicant's knowledge and
 36-9    understanding of the laws and rules relating to the activities
36-10    regulated under this chapter in this state;
36-11                      (B)  meets the academic and experience
36-12    requirements for a license under this chapter; and
36-13                      (C)  satisfies any other licensing requirements
36-14    under this chapter.
36-15          (d)  The commission must approve or deny a provisional
36-16    license holder's application for a license not later than the 180th
36-17    day after the date the provisional license is issued.  The
36-18    commission may extend the 180-day period if the results of an
36-19    examination have not been received by the commission before the end
36-20    of that period.
36-21          (e)  The commission may establish a fee for provisional
36-22    licenses in an amount reasonable and necessary to cover the cost of
36-23    issuing the license.
36-24          SECTION 27.  Subsections (d) and (h), Section 113.097,
36-25    Natural Resources Code, are amended to read as follows:
36-26          (d)  Each [category "C," "E," "H," or "J"] licensee under
 37-1    Section 113.082(a)(3), (5), (8), or (10) must carry motor vehicle
 37-2    bodily injury and property damage liability coverage on each motor
 37-3    vehicle, including trailers and semitrailers, used to transport
 37-4    LP-gas.  The commission shall establish by rule a reasonable amount
 37-5    of coverage to be maintained, except that coverage shall not be
 37-6    less than the amounts required as evidence of financial
 37-7    responsibility under Chapter 601, Transportation Code.
 37-8          (h)  As required by commission rule, a [category "A," "B,"
 37-9    "C," "E," or "O"] licensee under Section 113.082(a)(1), (2), (3),
37-10    (5), or (15) must carry completed operations or products liability
37-11    insurance, or both, in a reasonable amount, based on the type or
37-12    types of licensed activities.
37-13          SECTION 28.  Subsections (a) and (c), Section 113.098,
37-14    Natural Resources Code, are amended to read as follows:
37-15          (a)  As evidence that required insurance has been secured and
37-16    is in force, certificates of insurance which are approved by the
37-17    commission [division] shall be filed with the commission [division]
37-18    before licensing, license renewal, and during the entire period
37-19    that the license is in effect.  Any document filed with the
37-20    commission [division] in a timely manner which is not completed in
37-21    accordance with the instructions indicated on the insurance
37-22    certificate forms supplied by the commission [division], but which
37-23    complies with the substantive requirements of this section and with
37-24    the rules adopted under this section may be considered by the
37-25    commission [division] to be evidence that required insurance has
37-26    been secured and is in force for a temporary period not to exceed
 38-1    45 days.  During this temporary period, a licensee shall file with
 38-2    the commission [division] an amended certificate of insurance which
 38-3    complies with all procedural and substantive requirements of this
 38-4    section and the rules adopted hereunder.
 38-5          (c)  Cancellation of a certificate of insurance becomes
 38-6    effective on the occurrence of any of the following events and not
 38-7    before:
 38-8                (1)  commission [division] receipt of written notice
 38-9    stating the insurer's intent to cancel a policy of insurance and
38-10    the passage of time equivalent to the notice period required by law
38-11    to be given the insured before the insurance cancellation;
38-12                (2)  receipt by the commission [division] of an
38-13    acceptable replacement insurance certificate;
38-14                (3)  voluntary surrender of a license and the rights
38-15    and privileges conferred by the license;
38-16                (4)  commission [division] receipt of a statement made
38-17    by a licensee stating that the licensee is not actively engaging in
38-18    any operations which require a particular type of insurance and
38-19    will not engage in those operations unless and until all
38-20    certificates of required insurance applicable to those operations
38-21    are filed with the commission [division]; or
38-22                (5)  written order of commission.
38-23          SECTION 29.  Subsections (a) through (d), Section 113.099,
38-24    Natural Resources Code, are amended to read as follows:
38-25          (a)  A [category "C," "E," "H," or "J"] licensee or an
38-26    applicant for a license under Sections 113.082(a)(3), (5), (8), or
 39-1    (10) that does not operate or contemplate the operation of a motor
 39-2    vehicle equipped with an LP-gas cargo container and does not
 39-3    transport or contemplate the transportation of LP-gas by vehicle in
 39-4    any manner, may make and file with the commission [division] a
 39-5    statement to that effect in lieu of filing a certificate of motor
 39-6    vehicle bodily injury and property damage insurance.
 39-7          (b)  A licensee or an applicant for a license that does not
 39-8    engage in or contemplate engaging in any operations which would be
 39-9    covered by general liability insurance for a period of time may
39-10    make and file with the commission [division] a statement to that
39-11    effect in lieu of filing a certificate of general liability
39-12    insurance.
39-13          (c)  A licensee or an applicant for a license that does not
39-14    employ or contemplate the hiring of an employee or employees to be
39-15    engaged in LPG-related activities in this state may make and file
39-16    with the commission [division] a statement to that effect in lieu
39-17    of filing evidence of coverage of workers' compensation or other
39-18    alternative form of coverage as provided in this subchapter.
39-19          (d)  A [category "A," "B," "C," "E," or "O"] licensee or an
39-20    applicant for a license under Section 113.082(a)(1), (2), (3), (5),
39-21    or (15) that does not engage in or contemplate engaging in any
39-22    LP-gas operations which would be covered by completed operations or
39-23    products liability insurance, or both, for a period of time may
39-24    make and file with the commission [division] a statement to that
39-25    effect in lieu of filing a certificate of insurance.
39-26          SECTION 30.  The heading to Subchapter F, Chapter 113,
 40-1    Natural Resources Code, is amended to read as follows:
 40-2     SUBCHAPTER F.  DISCIPLINARY ACTION [SUSPENSION AND REVOCATION OF
 40-3                        LICENSES AND REGISTRATIONS]
 40-4          SECTION 31.  Subsection (e), Section 113.161, Natural
 40-5    Resources Code, is amended to read as follows:
 40-6          (e)  If the commission [or division] determines that the
 40-7    probable violation or noncompliance constitutes an immediate danger
 40-8    to the public health, safety, and welfare, it shall require the
 40-9    immediate cessation of the probable violation or noncompliance and
40-10    proceed with a hearing as provided in Section 113.162 of this code.
40-11          SECTION 32.  Section 113.163, Natural Resources Code, is
40-12    amended to read as follows:
40-13          Sec. 113.163.  FINDINGS AND JUDGMENT.  (a)  The [If the]
40-14    commission shall revoke, suspend, or refuse to renew a license or
40-15    registration or shall reprimand a licensee or registrant if the
40-16    commission finds that the licensee or registrant has violated or
40-17    failed to comply with or is violating or failing to comply with
40-18    this chapter or a rule or standard promulgated and adopted under
40-19    this chapter[, or both, the commission may suspend the license or
40-20    registration for a definite period not to exceed 90 days or may
40-21    revoke the license or registration.  If the commission determines
40-22    that no violation has occurred or is occurring, its order shall so
40-23    state.  Whenever a license or registration is revoked by order of
40-24    the commission, a new license or registration shall not be issued
40-25    for at least 90 days from the effective date of the order.  Such
40-26    time period shall be stated in the order].
 41-1          (b)  The commission may place on probation a person whose
 41-2    license or registration is [has been] suspended.  If a license or
 41-3    registration suspension is probated, the commission may require the
 41-4    person:
 41-5                (1)  to report regularly to the commission on matters
 41-6    that are the basis of the probation;
 41-7                (2)  to limit practice to the areas prescribed by the
 41-8    commission; or
 41-9                (3)  to continue or review professional education until
41-10    the person attains a degree of skill satisfactory to the commission
41-11    in those areas that are the basis of the [under Subsection (a) of
41-12    this section for a definite period not to exceed one year, but if
41-13    the commission does place the licensee or registrant on probation
41-14    and does allow him to continue to operate, the fact that the
41-15    license or registration has been suspended and the licensee or
41-16    registrant has been put on probation shall appear in the records of
41-17    the commission relating to the suspension and] probation.
41-18          SECTION 33.  Subsection (b), Section 113.233, Natural
41-19    Resources Code, is amended to read as follows:
41-20          (b)  Any authorized representative of the commission [LP-Gas
41-21    Division] may enter any buildings or premises where an accident has
41-22    occurred in which LP-gas was a probable cause for purposes of
41-23    investigating the cause, origin, and circumstances of such
41-24    accident.  The commission [LP-Gas Division] may request that any
41-25    state or local authority having jurisdiction take appropriate
41-26    action, to the extent permitted by law, as may be necessary for
 42-1    preservation of property and premises.
 42-2          SECTION 34.  Subsection (b), Section 113.243, Natural
 42-3    Resources Code, as amended by Section 2, Chapter 496, Acts of the
 42-4    75th Legislature, Regular Session, 1997, is amended to read as
 42-5    follows:
 42-6          (b)  The fund consists of money from:
 42-7                (1)  fees charged under this subchapter;
 42-8                (2)  the penalties for the late payment of the fee
 42-9    charged under this subchapter;
42-10                (3)  gifts, grants, or other assistance received by the
42-11    commission from any source for the purposes of this subchapter;
42-12                (4)  interest earned on amounts in the fund;
42-13                (5)  amounts collected by the commission under an
42-14    agreement with another state in accordance with Section 113.246(e);
42-15    [and]
42-16                (6)  assessments, rebates on assessments, and other
42-17    money collected by the commission under the Propane Education and
42-18    Research Act of 1996 (15 U.S.C. Section 6401 et seq.) or other
42-19    applicable federal law; and
42-20                (7)  fees, royalties, or other things of value received
42-21    from the items described by Subsections (f)(1)(A)-(D).
42-22          SECTION 35.  Section 113.243, Natural Resources Code, is
42-23    amended by amending Subsections (c) and (d) and adding Subsections
42-24    (f) and (g) to read as follows:
42-25          (c)  The fund may be used only by the commission to pay for
42-26    activities relating to the specific fuel from which the fee,
 43-1    royalty, or other thing of value was derived or the specific fuel,
 43-2    if any, for which the gift, grant, or other assistance is given,
 43-3    including direct and indirect costs relating to:
 43-4                (1)  researching all possible uses of LPG and other
 43-5    environmentally beneficial alternative fuels to enhance air
 43-6    quality;
 43-7                (2)  researching, developing, and implementing
 43-8    marketing, advertising, and informational programs relating to
 43-9    alternative fuels to make alternative fuels more understandable and
43-10    readily available to consumers;
43-11                (3)  developing and implementing conservation and
43-12    distribution plans to minimize the frequency and severity of
43-13    disruptions in the supply of alternative fuels;
43-14                (4)  developing a public information plan that will
43-15    provide advisory services relating to alternative fuels to
43-16    consumers;
43-17                (5)  developing voluntary participation plans to
43-18    promote the use of alternative fuels by federal, state, and local
43-19    agencies;
43-20                (6)  implementing consumer incentive or rebate programs
43-21    developed pursuant to Section 113.2435 of this subchapter;
43-22                (7)  other functions the commission determines are
43-23    necessary to add a program established by the commission for the
43-24    purpose of promoting the use of LPG or other environmentally
43-25    beneficial alternative fuels; and
43-26                (8)  the administrative costs incurred by the
 44-1    commission under this subchapter.
 44-2          (d)  If a specific fee, royalty, gift, grant, other thing of
 44-3    value, or other assistance is designated for or collected from
 44-4    discrete components of the alternative fuels industry, the fee,
 44-5    royalty, gift, grant, other thing of value, or other assistance
 44-6    shall be deposited in a separate account in the fund.
 44-7          (f)  The commission may:
 44-8                (1)  apply for, register, secure, hold, and protect
 44-9    under the laws of a state, the United States, or a foreign country
44-10    a patent, copyright, trademark, or other evidence of protection or
44-11    exclusivity issued for an idea, publication, or other original
44-12    innovation fixed in a tangible medium, including:
44-13                      (A)  a logo;
44-14                      (B)  a service mark;
44-15                      (C)  a study;
44-16                      (D)  an engineering, architectural, or graphic
44-17    design;
44-18                      (E)  a manual;
44-19                      (F)  automated systems software;
44-20                      (G)  an audiovisual work; or
44-21                      (H)  a sound recording;
44-22                (2)  enter into a license agreement with a third party
44-23    in return for a fee, royalty, or other thing of value; and
44-24                (3)  waive or reduce the amount of a fee, royalty, or
44-25    other thing of value to be assessed if the commission determines
44-26    that the waiver will:
 45-1                      (A)  further the goals and missions of the
 45-2    commission's division responsible for alternative fuels research
 45-3    and education; and
 45-4                      (B)  result in a net benefit to the state.
 45-5          (g)  Money received under Subsection (f) shall be deposited
 45-6    in a separate account in the fund as provided by Subsection (d),
 45-7    except that any money received by the commission from the items
 45-8    described by Subsections (f)(1)(E)-(H) shall be deposited in the
 45-9    general revenue fund.
45-10          SECTION 36.  Subchapter J, Chapter 113, Natural Resources
45-11    Code, as added by Chapter 80, Acts of the 73rd Legislature, Regular
45-12    Session, 1993, is redesignated as Subchapter K, and the heading to
45-13    that subchapter is amended to read as follows:
45-14              SUBCHAPTER K [J].  LIABILITY OF LICENSE HOLDER
45-15          SECTION 37.  Subchapter B, Chapter 116, Natural Resources
45-16    Code, is amended by adding Section 116.016 to read as follows:
45-17          Sec. 116.016.  LIMITATIONS ON RULEMAKING AUTHORITY.  (a)  The
45-18    commission may not adopt rules restricting advertising or
45-19    competitive bidding by a licensee or registrant except to prohibit
45-20    false, misleading, or deceptive practices.
45-21          (b)  In its rules to prohibit false, misleading, or deceptive
45-22    practices, the commission may not include a rule that:
45-23                (1)  restricts the use of any medium for advertising;
45-24                (2)  restricts the use of a licensee or registrant's
45-25    personal appearance or voice in an advertisement;
45-26                (3)  relates to the size or duration of an
 46-1    advertisement by the licensee or registrant; or
 46-2                (4)  restricts the licensee or registrant's
 46-3    advertisement under a trade name.
 46-4          SECTION 38.  Subsection (b), Section 116.032, Natural
 46-5    Resources Code, is amended to read as follows:
 46-6          (b)  The commission by rule may establish reasonable fees for
 46-7    each category of license.  [A license fee may not exceed $1,000.]
 46-8          SECTION 39.  Section 116.033, Natural Resources Code, is
 46-9    amended to read as follows:
46-10          Sec. 116.033.  APPLICATION AND RENEWAL PROCEDURES.  (a)  The
46-11    commission shall adopt rules establishing procedures for submitting
46-12    and processing applications for issuance and renewal of licenses
46-13    and for registration.
46-14          (b)  A person who is otherwise eligible to renew a license or
46-15    registration may renew an unexpired license or registration by
46-16    paying the required renewal fee to the commission before the
46-17    expiration date of the license or registration.  A person whose
46-18    license or registration has expired may not engage in activities
46-19    that require a license or registration until the license or
46-20    registration has been renewed.
46-21          (c)  A person whose license or registration has been expired
46-22    for 90 days or less may renew the license or registration by paying
46-23    to the commission a renewal fee that is equal to 1-1/2 times the
46-24    normally required renewal fee.
46-25          (d)  A person whose license or registration has been expired
46-26    for more than 90 days but less than one year may renew the license
 47-1    or registration by paying to the commission a renewal fee that is
 47-2    equal to two times the normally required renewal fee.
 47-3          (e)  A person whose license or registration has been expired
 47-4    for one year or more may not renew the license or registration.
 47-5    The person may obtain a new license or registration by complying
 47-6    with the requirements and procedures, including the examination
 47-7    requirements, for obtaining an original license or registration.
 47-8          (f)  A person who was licensed or registered in this state,
 47-9    moved to another state, and is currently licensed or registered and
47-10    has been in practice in the other state for the two years preceding
47-11    the date of application may obtain a new license or registration
47-12    without reexamination.  The person must pay to the commission a fee
47-13    that is equal to two times the normally required renewal fee for
47-14    the license or registration.
47-15          (g)  Not later than the 30th day before the date a person's
47-16    license or registration is scheduled to expire, the commission
47-17    shall send written notice of the impending expiration to the person
47-18    at the person's last known address according to the records of the
47-19    commission.
47-20          SECTION 40.  Section 116.034, Natural Resources Code, is
47-21    amended by adding Subsections (d) through (h) to read as follows:
47-22          (d)  Not later than the 30th day after the date a person
47-23    takes a licensing or registration examination under this chapter,
47-24    the commission shall notify the person of the results of the
47-25    examination.
47-26          (e)  If the examination is graded or reviewed by a testing
 48-1    service:
 48-2                (1)  the commission shall notify the person of the
 48-3    results of the examination not later than the 14th day after the
 48-4    date the commission receives the results from the testing service;
 48-5    and
 48-6                (2)  if notice of the examination results will be
 48-7    delayed for longer than 90 days after the examination date, the
 48-8    commission shall notify the person of the reason for the delay
 48-9    before the 90th day.
48-10          (f)  The commission may require a testing service to notify a
48-11    person of the results of the person's examination.
48-12          (g)  If requested in writing by a person who fails a
48-13    licensing or registration examination administered under this
48-14    chapter, the commission shall furnish the person with an analysis
48-15    of the person's performance on the examination.
48-16          (h)  The commission shall recognize, prepare, or administer
48-17    continuing education programs for its licensees and registrants.  A
48-18    licensee or registrant must participate in the programs to the
48-19    extent required by the commission to keep the person's license.
48-20          SECTION 41.  Subchapter C, Chapter 116, Natural Resources
48-21    Code, is amended by adding Sections 116.0345 and 116.0346 to read
48-22    as follows:
48-23          Sec. 116.0345.  LICENSE OR REGISTRATION BY ENDORSEMENT.  The
48-24    commission may waive any prerequisite to obtaining a license or
48-25    registration for an applicant after reviewing the applicant's
48-26    credentials and determining that the applicant holds a license or
 49-1    registration issued by another jurisdiction that has licensing
 49-2    requirements substantially equivalent to those of this state.
 49-3          Sec. 116.0346.  PROVISIONAL LICENSE OR REGISTRATION.
 49-4    (a)  The commission may issue a provisional license or registration
 49-5    to an applicant currently licensed or registered in another
 49-6    jurisdiction who seeks a license or registration in this state and
 49-7    who:
 49-8                (1)  has been licensed or registered in good standing
 49-9    for at least two years in another jurisdiction, including a foreign
49-10    country, that has licensing or registration requirements
49-11    substantially equivalent to the requirements of this chapter;
49-12                (2)  has passed a national or other examination
49-13    recognized by the commission relating to the activities regulated
49-14    under this chapter; and
49-15                (3)  is sponsored by a person licensed or registered by
49-16    the commission under this chapter with whom the provisional license
49-17    or registration holder will practice during the time the person
49-18    holds a provisional license or registration.
49-19          (b)  The commission may waive the requirement of Subsection
49-20    (a)(3) for an applicant if the commission determines that
49-21    compliance with that subsection would be a hardship to the
49-22    applicant.
49-23          (c)  A provisional license or registration is valid until the
49-24    date the commission approves or denies the provisional license or
49-25    registration holder's application for a license or registration.
49-26    The commission shall issue a license or registration under this
 50-1    chapter to the provisional license or registration holder if:
 50-2                (1)  the provisional license or registration holder is
 50-3    eligible to be licensed or registered under Section 116.0345; or
 50-4                (2)  the provisional license or registration holder:
 50-5                      (A)  passes the part of the examination under
 50-6    Section 116.034 that relates to the applicant's knowledge and
 50-7    understanding of the laws and rules relating to the activities
 50-8    regulated under this chapter in this state;
 50-9                      (B)  meets the academic and experience
50-10    requirements for a license or registration under this chapter; and
50-11                      (C)  satisfies any other licensing or
50-12    registration requirements under this chapter.
50-13          (d)  The commission must approve or deny a provisional
50-14    license or registration holder's application for a license or
50-15    registration not later than the 180th day after the date the
50-16    provisional license or registration is issued.  The commission may
50-17    extend the 180-day period if the results of an examination have not
50-18    been received by the commission before the end of that period.
50-19          (e)  The commission may establish a fee for provisional
50-20    licenses or registrations in an amount reasonable and necessary to
50-21    cover the cost of issuing the license or registration.
50-22          SECTION 42.  The heading to Section 116.037, Natural
50-23    Resources Code, is amended to read as follows:
50-24          Sec. 116.037.  DISCIPLINARY ACTION [SUSPENSION AND REVOCATION
50-25    OF LICENSE].
50-26          SECTION 43.  Section 116.037, Natural Resources Code, is
 51-1    amended by amending Subsections (f) and (g) and adding Subsection
 51-2    (h) to read as follows:
 51-3          (f)  The [If the] commission shall revoke, suspend, or refuse
 51-4    to renew the license or registration or shall reprimand the
 51-5    licensee or registrant if the commission finds that the licensee or
 51-6    registrant has violated or failed to comply with or is violating or
 51-7    failing to comply with this chapter or a rule adopted under this
 51-8    chapter[, the commission may suspend the license or registration
 51-9    for a definite period not to exceed 90 days or may revoke the
51-10    license].
51-11          (g)  The commission may place on probation a person whose
51-12    license or registration is suspended.  If a license or registration
51-13    suspension is probated, the commission may require the person:
51-14                (1)  to report regularly to the commission on matters
51-15    that are the basis of the probation;
51-16                (2)  to limit practice to the areas prescribed by the
51-17    commission; or
51-18                (3)  to continue or review professional education until
51-19    the person attains a degree of skill satisfactory to the commission
51-20    in those areas that are the basis of the probation.
51-21          (h)  Any party to a proceeding before the commission is
51-22    entitled to judicial review under the substantial evidence rule.
51-23          SECTION 44.  Subtitle D, Title 3, Natural Resources Code, is
51-24    amended by adding Chapter 118 to read as follows:
51-25               CHAPTER 118.  PIPELINE ASSESSMENT AND TESTING
51-26          Sec. 118.001.  AUTHORITY TO REQUIRE PLAN FOR PIPELINE
 52-1    ASSESSMENT OR TESTING.  (a)  The Railroad Commission of Texas by
 52-2    rule may require an operator to file for commission approval a plan
 52-3    for assessment or testing of a pipeline if the commission finds
 52-4    that:
 52-5                (1)  there is reason to believe that the pipeline may
 52-6    present a hazard to public health or safety;
 52-7                (2)  the commission lacks adequate information to
 52-8    assess the risk to public health or safety presented by the
 52-9    pipeline; or
52-10                (3)  a plan is necessary for the commission to initiate
52-11    or complete a pipeline safety investigation.
52-12          (b)  The Railroad Commission of Texas may take enforcement
52-13    action against a person who fails to:
52-14                (1)  submit a required plan; or
52-15                (2)  participate in a pipeline safety investigation.
52-16          Sec. 118.002.  PIPELINES FOR WHICH PLAN MAY BE REQUIRED.  The
52-17    rules adopted under this chapter may apply to interstate pipelines,
52-18    intrastate pipelines, portions of pipeline systems the regulation
52-19    of which the federal government has temporarily delegated to the
52-20    Railroad Commission of Texas, or gathering lines, and to pipelines
52-21    for the transportation of any substance or material under the
52-22    jurisdiction of the commission, as specified by the commission.
52-23          Sec. 118.003.  CONTENTS OF PLAN.  The rules adopted under
52-24    this chapter may require that a plan include:
52-25                (1)  an identification of risk factors associated with
52-26    a pipeline system, including population density;
 53-1                (2)  information about prior inspections and
 53-2    maintenance;
 53-3                (3)  information about pressure tests;
 53-4                (4)  information about leaks;
 53-5                (5)  information about operating characteristics;
 53-6                (6)  information about corrosion protection methods;
 53-7    and
 53-8                (7)  other information that may assist the Railroad
 53-9    Commission of Texas in assessing the risk to public health or
53-10    safety presented by the pipeline.
53-11          Sec. 118.004.  APPROVAL OF PLAN.  The Railroad Commission of
53-12    Texas may approve a plan that complies with rules adopted under
53-13    this chapter.
53-14          Sec. 118.005.  CONSEQUENCES OF PLAN APPROVAL.  The approval
53-15    of a plan by the Railroad Commission of Texas does not constitute a
53-16    certification or representation that the pipeline is in compliance
53-17    with or exempt from applicable safety standards.
53-18          SECTION 45.  Section 104.107, Utilities Code, is amended by
53-19    amending Subsection (b) and adding Subsection (c) to read as
53-20    follows:
53-21          (b)  The 150-day period prescribed by Subsection (a)(2) shall
53-22    be extended for two days for each day the actual hearing on the
53-23    merits of the case exceeds 15 days.
53-24          (c)  If the regulatory authority does not make a final
53-25    determination concerning a schedule of rates before expiration of
53-26    the applicable suspension period, the regulatory authority is
 54-1    considered to have approved the schedule.  This approval is subject
 54-2    to the authority of the regulatory authority thereafter to continue
 54-3    a hearing in progress.
 54-4          SECTION 46.  Section 121.206, Utilities Code, is amended by
 54-5    amending Subsection (c) and adding Subsection (d) to read as
 54-6    follows:
 54-7          (c)  In determining the amount of the penalty, the railroad
 54-8    commission shall consider the guidelines adopted under Subsection
 54-9    (d).
54-10          (d)  The railroad commission by rule shall adopt guidelines
54-11    to be used in determining the amount of a penalty under this
54-12    subchapter.  The guidelines shall include a penalty calculation
54-13    worksheet that specifies the typical penalty for certain
54-14    violations, circumstances justifying enhancement of a penalty and
54-15    the amount of the enhancement, and circumstances justifying a
54-16    reduction in a penalty and the amount of the reduction.  The
54-17    guidelines shall take into account:
54-18                (1)  the person's history of previous violations of
54-19    Section 121.201 or a safety standard or rule relating to the
54-20    transportation of gas and gas pipeline facilities adopted under
54-21    that section, including the number of previous violations;
54-22                (2)  the seriousness of the violation and of any
54-23    pollution resulting from the violation; [and]
54-24                (3)  any hazard to the health or safety of the public;
54-25                (4)  the degree of culpability;
54-26                (5)  the demonstrated good faith of the person charged;
 55-1    and
 55-2                (6)  any other factor the commission considers
 55-3    relevant.
 55-4          SECTION 47.  Subchapter C, Chapter 2003, Government Code, is
 55-5    amended by adding Section 2003.0491 to read as follows:
 55-6          Sec. 2003.0491.  RAILROAD COMMISSION HEARINGS.  The utility
 55-7    division shall conduct contested case hearings and may make final
 55-8    decisions and issue findings of fact, conclusions of law, and other
 55-9    necessary orders in other proceedings on behalf of the Railroad
55-10    Commission of Texas.  The provisions of Section 2003.049 apply to a
55-11    proceeding under this section.
55-12          SECTION 48.  The following laws are repealed:
55-13                (1)  Chapter 93, Natural Resources Code;
55-14                (2)  Subdivision (2), Section 113.002, and Sections
55-15    113.012 and 113.013, Natural Resources Code;
55-16                (3)  Subsection (b), Section 113.243, Natural Resources
55-17    Code, as amended by Section 1, Chapter 496, Acts of the 75th
55-18    Legislature, Regular Session, 1997; and
55-19                (4)  Section 113.246, Natural Resources Code, as
55-20    amended by Section 6, Chapter 496, Acts of the 75th Legislature,
55-21    Regular Session, 1997.
55-22          SECTION 49.  (a)  Except as otherwise provided by this Act,
55-23    this Act takes effect September 1, 2001.
55-24          (b)  Section 2003.0491, Government Code, as added by this
55-25    Act, apply only to a contested case filed at the Railroad
55-26    Commission of Texas on or after the effective date of this Act.  A
 56-1    contested case filed at the commission before that date is governed
 56-2    by the law in effect at the time the case is filed, and the former
 56-3    law is continued in effect for that purpose.