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, 6447, 6447b, 6447c, and 6447h,
 1-6     Revised 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. 6447.  THE COMMISSION.  Election.--The Railroad
1-12     Commission of Texas shall be composed of three members, one of whom
1-13     shall be elected biennially at each general election for a term of
1-14     six years.
1-15           Qualifications.--The members shall be resident citizens of
1-16     this State, and qualified voters under the Constitution and laws,
1-17     and not less than twenty-five years of age.  The members are
1-18     subject to the provisions of Chapter 572, Government Code, that
1-19     apply to elected officers, including the requirements governing
1-20     personal financial statements, standards of conduct, and conflicts
1-21     of interest.  [No member shall be directly or indirectly interested
1-22     in any railroad, or in any stock, bond, mortgage, security, or
1-23     earnings of any railroad, and should a member voluntarily become so
1-24     interested his office shall become vacant, or should he become so
1-25     interested otherwise than voluntarily, he shall within a reasonable
 2-1     time divest himself of such interest, failing to do this, his
 2-2     office shall become vacant.]
 2-3           [Shall hold no other office, etc.--No commissioner shall hold
 2-4     any other office of any character, while such commissioner, nor
 2-5     engage in any occupation or business inconsistent with his duties
 2-6     as such commissioner.]
 2-7           Oath, etc.--Before entering upon the duties of his office,
 2-8     each commissioner shall take and subscribe to the official oath and
 2-9     shall in addition thereto[,] swear that he [is not directly or
2-10     indirectly interested in any railroad, nor in the bonds, stock,
2-11     mortgages, securities, contracts, or earnings of any railroad, and
2-12     that he] will to the best of his ability faithfully and justly
2-13     execute and enforce the provisions of this title[,] and all laws of
2-14     this State concerning railroads, which oath shall be filed with the
2-15     Secretary of State.
2-16           Organization.--The commissioners shall elect one of their
2-17     number chairman.  They may make all rules necessary for their
2-18     government and proceedings.  They shall be known collectively as
2-19     the "Railroad Commission of Texas," and shall have a seal, a star
2-20     of five points with the words "Railroad Commission of Texas"
2-21     engraved thereon.  They shall be furnished necessary furniture,
2-22     stationery, supplies and all necessary expenses, to be paid for on
2-23     the order of the Governor.
2-24           Expenses.--The Commissioners shall receive from the State
2-25     their necessary traveling expenses while traveling on the business
2-26     of the Commission, which shall include the cost only of
 3-1     transportation while traveling on business for the Commission, upon
 3-2     an itemized statement thereof, sworn to by the party who incurred
 3-3     the expense, and approved by the Commission.  Employees of the
 3-4     Commission are entitled to reimbursement for expenses incurred in
 3-5     traveling on the business of the Commission as provided by the
 3-6     General Appropriations Act.
 3-7           Sessions.--The Commission may hold its sessions at any place
 3-8     in this State when deemed necessary.
 3-9           Art. 6447b.  EQUAL EMPLOYMENT OPPORTUNITY [EMPLOYEE
3-10     PERFORMANCE].  (a)  The commission [or its designee shall develop
3-11     an intra-agency career ladder program, one part of which shall be
3-12     the intra-agency posting of all nonentry level positions for at
3-13     least 10 days before any public posting.]
3-14           [(b)  The commission or its designee shall develop a system
3-15     of annual performance evaluations based on measurable job tasks.
3-16     All merit pay for commission employees must be based on the system
3-17     established under this subsection.]
3-18           [(c)  The commission] shall prepare and maintain a written
3-19     policy statement that implements [plan to assure implementation of]
3-20     a program of equal employment opportunity to ensure that [whereby]
3-21     all personnel decisions [transactions] are made without regard to
3-22     race, color, disability, sex, religion, age, or national origin.
3-23           (b)  The policy statement must [plan shall] include:
3-24                 (1)  personnel policies, including policies relating to
3-25     [plans for] recruitment, evaluation, selection, [appointment,]
3-26     training, and promotion of personnel, that show the intent of the
 4-1     commission to avoid the unlawful employment practices described by
 4-2     Chapter 21, Labor Code; and
 4-3                 (2)  an analysis of the extent to which the composition
 4-4     of the commission's personnel is in accordance with state and
 4-5     federal law and a description of reasonable methods to achieve
 4-6     compliance with state and federal law.
 4-7           (c)  The policy statement must:
 4-8                 (1)  be updated annually;
 4-9                 (2)  be reviewed by the state Commission on Human
4-10     Rights for compliance with Subsection (b) of this article; and
4-11                 (3)  be filed with the governor's office[, and other
4-12     personnel practices.  The plan shall also include steps reasonably
4-13     designed to overcome any identified under-utilization of minorities
4-14     and women in the commission's work force and shall include
4-15     objectives and goals, timetables for achieving those objectives and
4-16     goals, and assignments of responsibility for their completion.  The
4-17     plan shall be filed with the governor's office within 60 days after
4-18     the effective date of this section, cover an annual period, and be
4-19     updated at least annually.  Progress reports shall be submitted to
4-20     the governor's office within 30 days of November 1 and April 1 of
4-21     each year and shall include the steps the commission has taken
4-22     within the reporting period to comply with this requirement of this
4-23     section].
4-24           Art. 6447c.  CONFLICT OF INTEREST.  (a)  In this section,
4-25     "Texas trade association" means a cooperative and voluntarily
4-26     joined association of business or professional competitors in this
 5-1     state designed to assist its members and its industry or profession
 5-2     in dealing with mutual business or professional problems and in
 5-3     promoting their common interest.
 5-4           (b)  A person may not be an employee of the commission
 5-5     employed in a "bona fide executive, administrative, or professional
 5-6     capacity," as that phrase is used for purposes of establishing an
 5-7     exemption to the overtime provisions of the federal Fair Labor
 5-8     Standards Act of 1938 (29 U.S.C. Section 201 et seq.) and its
 5-9     subsequent amendments, if:
5-10                 (1)  the person is an officer, employee, or paid
5-11     consultant of a Texas trade association in a business or industry
5-12     regulated by the commission; or
5-13                 (2)  the person's spouse is an officer, manager, or
5-14     paid consultant of a Texas [An employee of the commission may not
5-15     be an officer, employee, or paid consultant of a] trade association
5-16     in a business or industry regulated by the commission.
5-17           (c) [(b)]  A person who is required to register as a lobbyist
5-18     under Chapter 305, Government Code, may not act as the general
5-19     counsel to the commission.
5-20           (d) [(c)]  The commission[, as often as necessary,] shall
5-21     provide to members of the commission and to agency employees, as
5-22     often as necessary, information regarding the requirements for
5-23     office or employment under this chapter, including information
5-24     regarding a person's [employees'] responsibilities under applicable
5-25     laws relating to standards of conduct for state officers or
5-26     employees.
 6-1           Art. 6447h.  COMPLAINTS.  (a)  The commission shall maintain
 6-2     a [keep an information] file on [about] each written complaint
 6-3     filed with the commission.  The file must include:
 6-4                 (1)  the name of the person who filed the complaint;
 6-5                 (2)  the date the complaint is received by the
 6-6     commission;
 6-7                 (3)  the subject matter of the complaint;
 6-8                 (4)  the name of each person contacted in relation to
 6-9     the complaint;
6-10                 (5)  a summary of the results of the review or
6-11     investigation of the complaint; and
6-12                 (6)  an explanation of the reason the file was closed,
6-13     if the commission closed the file without taking action other than
6-14     to investigate the complaint.
6-15           (b)  The commission shall provide to the person filing the
6-16     complaint and to each person who is a subject of the complaint a
6-17     copy of the commission's policies and procedures relating to
6-18     complaint investigation and resolution.
6-19           (c)  The [relating to a person who has a license, permit, or
6-20     certificate of public convenience and necessity from the
6-21     commission.]
6-22           [(b)  If a written complaint is filed with the commission
6-23     relating to a person who has a license, permit, or certificate of
6-24     public convenience and necessity from the] commission, at least [as
6-25     frequently as] quarterly [and] until final disposition of the
6-26     complaint, [the commission] shall notify the person filing [parties
 7-1     to] the complaint and each person who is a subject of the complaint
 7-2     of the status of the investigation [complaint] unless the notice
 7-3     would jeopardize an undercover investigation.  [This section does
 7-4     not apply to complaints under Chapter 91, Natural Resources Code.]
 7-5           SECTION 2.  Title 112, Revised Statutes, is amended by adding
 7-6     Articles 6447k, 6447l, 6447m, and 6447n to read as follows:
 7-7           Art. 6447k.  SEPARATION OF POLICY-MAKING AND MANAGEMENT
 7-8     RESPONSIBILITIES.  The commission shall develop and implement
 7-9     policies that clearly separate the policy-making responsibilities
7-10     of the members of the commission and the management
7-11     responsibilities of the staff of the commission.
7-12           Art. 6447l.  PUBLIC PARTICIPATION.  The commission shall
7-13     develop and implement policies that provide the public with a
7-14     reasonable opportunity to appear before the commission and to speak
7-15     on any issue under the jurisdiction of the commission.
7-16           Art. 6447m.  EMPLOYEE INCENTIVE PROGRAM.  The commission
7-17     shall provide to commission employees information and training on
7-18     the benefits and methods of participation in the state employee
7-19     incentive program.
7-20           Art. 6447n.  METHOD OF MAKING PAYMENTS TO COMMISSION.
7-21     (a)  The commission may authorize payment, as prescribed by the
7-22     commission, of regulatory fees, fines, penalties, and charges for
7-23     goods and services by means of an electronic payment method or a
7-24     credit card issued by a financial institution chartered by a state
7-25     or the United States or issued by a nationally recognized credit
7-26     organization approved by the commission.  A payment by the
 8-1     authorized method may be made in person, by telephone, or through
 8-2     the Internet.
 8-3           (b)  The commission may require a person who makes a payment
 8-4     to the commission by means of an electronic payment method or
 8-5     credit card to pay a discount or service charge in an amount
 8-6     reasonable and necessary to reimburse the commission for the costs
 8-7     involved in processing the payment.
 8-8           (c)  The commission may adopt rules as necessary to implement
 8-9     this article.
8-10           SECTION 3.  Section 81.0521, Natural Resources Code, is
8-11     amended by amending Subsection (a) and adding Subsection (c) to
8-12     read as follows:
8-13           (a)  With each application for an exception to any commission
8-14     rule contained in Chapter 3 of Part I of Title 16 of the Texas
8-15     Administrative Code, the applicant shall submit to the commission a
8-16     fee of $150 [$50].
8-17           (c)  Two-thirds of the proceeds from this fee, including any
8-18     penalties collected in connection with the fee, shall be deposited
8-19     to the oil-field cleanup fund as provided by Section 91.111.
8-20           SECTION 4.  Subsection (a), Section 81.0522, Natural
8-21     Resources Code, is amended to read as follows:
8-22           (a)  With each Natural Gas Policy Act (15 U.S.C. Sections
8-23     3301-3432) application, the applicant shall submit to the
8-24     commission a fee [of $50].  The commission shall set the
8-25     application fee in an amount necessary to cover the cost of the
8-26     commission's well category determination program but not to exceed
 9-1     $150.
 9-2           SECTION 5.  Section 81.0531, Natural Resources Code, is
 9-3     amended by amending Subsections (c) and (d) and adding Subsection
 9-4     (e) to read as follows:
 9-5           (c)  In determining the amount of the penalty, the commission
 9-6     shall consider the permittee's history of previous violations, the
 9-7     seriousness of the violation, any hazard to the health or safety of
 9-8     the public, and the demonstrated good faith of the person charged.
 9-9     In determining the amount of the penalty for a violation of a
9-10     provision of this title or a rule, order, license, permit, or
9-11     certificate that relates to pipeline safety, the commission shall
9-12     consider the guidelines adopted under Subsection (d).
9-13           (d)  The commission by rule shall adopt guidelines to be used
9-14     in determining the amount of the penalty for a violation of a
9-15     provision of this title or a rule, order, license, permit, or
9-16     certificate that relates to pipeline safety.  The guidelines shall
9-17     include a penalty calculation worksheet that specifies the typical
9-18     penalty for certain violations, circumstances justifying
9-19     enhancement of a penalty and the amount of the enhancement, and
9-20     circumstances justifying a reduction in a penalty and the amount of
9-21     the reduction.  The guidelines shall take into account:
9-22                 (1)  the permittee's history of previous violations,
9-23     including the number of previous violations;
9-24                 (2)  the seriousness of the violation and of any
9-25     pollution resulting from the violation;
9-26                 (3)  any hazard to the health or safety of the public;
 10-1                (4)  the degree of culpability;
 10-2                (5)  the demonstrated good faith of the person charged;
 10-3    and
 10-4                (6)  any other factor the commission considers
 10-5    relevant.
 10-6          (e)  A penalty collected under this section shall be
 10-7    deposited to the credit of the oil-field cleanup fund.
 10-8          SECTION 6.  Subchapter C, Chapter 81, Natural Resources Code,
 10-9    is amended by adding Sections 81.055 and 81.056 to read as follows:
10-10          Sec. 81.055.  PIPELINE SYSTEM FINANCIAL RESPONSIBILITY
10-11    REQUIREMENTS.  (a)  Not later than March 1, 2002, the legislature
10-12    may:
10-13                (1)  study the desirability of requiring an owner,
10-14    operator, or manager of a pipeline system to obtain liability
10-15    insurance coverage, a bond, or other evidence of financial
10-16    responsibility in order to protect the public from the costs
10-17    resulting from a discharge from the pipeline system; and
10-18                (2)  report its findings to the legislature and make
10-19    the report available to the public.
10-20          (b)  If the legislature finds that adoption of such a
10-21    requirement is desirable, the commission by rule may require an
10-22    owner, operator, or manager of a pipeline system to obtain evidence
10-23    of financial responsibility.  The rules must specify the
10-24    appropriate form and amount of that evidence and may require
10-25    evidence of financial responsibility in different amounts for
10-26    different pipeline systems, taking into consideration whether the
 11-1    pipeline system:
 11-2                (1)  has a history of discharges or other violations of
 11-3    regulatory requirements; or
 11-4                (2)  is located over a public drinking water supply, a
 11-5    natural resource, or a critical groundwater resource or near a
 11-6    school or populated area.
 11-7          Sec. 81.056.  PIPELINE CONSTRUCTION AND OPERATION PUBLIC
 11-8    NOTIFICATION REQUIREMENTS.  (a)  This section applies only to a new
 11-9    pipeline system, or the extension of an existing pipeline system,
11-10    that crosses more than three counties and for which construction
11-11    began after September 1, 2001.
11-12          (b)  A pipeline operator must publish notice in a newspaper
11-13    of general circulation in each county with a population greater
11-14    than 10,000 that contains part of the proposed route of the
11-15    pipeline system.  The notice shall be published in the form
11-16    prescribed by the commission and include the location of the
11-17    beginning and end points of the proposed part of the system and a
11-18    listing of each state or federal highway that will be crossed by
11-19    the proposed part of the system.  The notice must be published at
11-20    least 30 days but no more than one year before the start of
11-21    construction.
11-22          (c)  Before approving any permit for the operation of a
11-23    pipeline required by this chapter or the rules adopted under it,
11-24    the commission must:
11-25                (1)  certify that at least 90 days but no more than one
11-26    year before the date the commission approves the permit the person
 12-1    requesting the permit has provided a copy of the application to:
 12-2                      (A)  the county judge and commissioners of each
 12-3    county that contains part of the proposed route;
 12-4                      (B)  the county fire marshal in each county that
 12-5    contains part of the proposed route, if such office has been
 12-6    established by that county; and
 12-7                      (C)  the regional water planning group
 12-8    established by Section 16.053, Water Code, in each regional water
 12-9    planning area that contains part of the proposed route; and
12-10                (2)  review and consider comments from members of the
12-11    public regarding the project for which the permit is being
12-12    requested.
12-13          (d)  The duty to consider comments under Subsection (c)(2) is
12-14    not intended to unreasonably delay action on the permit application
12-15    or to require the commission to consider factors other than those
12-16    criteria provided by law or commission rule for determining whether
12-17    to award the permit.
12-18          SECTION 7.  Subsection (a), Section 81.116, Natural Resources
12-19    Code, is amended to read as follows:
12-20          (a)  An oil-field cleanup regulatory fee is imposed on crude
12-21    petroleum produced in this state in the amount of five-eighths
12-22    [five-sixteenths] of one cent on each barrel of 42 standard
12-23    gallons.
12-24          SECTION 8.  Subsection (a), Section 81.117, Natural Resources
12-25    Code, is amended to read as follows:
12-26          (a)  An oil-field cleanup regulatory fee is imposed on gas
 13-1    initially produced and saved in this state in the amount of
 13-2    one-fifteenth [one-thirtieth] of one cent for each thousand cubic
 13-3    feet.
 13-4          SECTION 9.  Sections 85.161 and 85.2021, Natural Resources
 13-5    Code, are amended to read as follows:
 13-6          Sec. 85.161.  WELL OWNERS AND OPERATORS CERTIFICATES.  The
 13-7    owner or operator of any [an oil or gas] well subject to the
 13-8    jurisdiction of the commission[, before connecting with any oil or
 13-9    gas pipeline,] shall secure from the commission a certificate
13-10    showing compliance with the oil or gas conservation laws of the
13-11    state and conservation rules and orders of the commission.
13-12          Sec. 85.2021.  DRILLING PERMIT FEE.  (a)  With each
13-13    application or materially amended application for a permit to
13-14    drill, deepen, plug back, or reenter a well, the applicant shall
13-15    submit to the commission a nonrefundable fee of:
13-16                (1)  $200 [$100] if the total depth of the well is
13-17    2,000 feet or less;
13-18                (2)  $225 [$125] if the total depth of the well is
13-19    greater than 2,000 feet but less than or equal to 4,000 feet;
13-20                (3)  $250 [$150] if the total depth of the well is
13-21    greater than 4,000 feet but less than or equal to 9,000 feet;
13-22                (4)  $300 [$200] if the total depth of the well is
13-23    greater than 9,000 feet.
13-24          (b)  An applicant shall submit an additional nonrefundable
13-25    fee of $200 when a Rule 37 spacing or a Rule 38 density exception
13-26    review is required.
 14-1          (c)  An applicant shall submit an additional nonrefundable
 14-2    fee of $150 [$50] when requesting that the commission expedite the
 14-3    application for a permit to drill, deepen, plug back, or reenter a
 14-4    well.
 14-5          (d) [(c)]  With each application for an extension of time to
 14-6    plug a well pursuant to commission rules, an applicant shall submit
 14-7    to the commission a nonrefundable fee of $300 [$100], unless the
 14-8    applicant has filed a bond, letter of credit, or cash deposit under
 14-9    Section 91.104(b)(1), (2), or (3) [under Section 91.1041 or Section
14-10    91.1042 of this code].
14-11          (e) [(d)]  All fees collected under this section shall be
14-12    deposited in the state oil-field cleanup fund.
14-13          SECTION 10.  Effective September 1, 2004, Section 85.2021,
14-14    Natural Resources Code, is amended to read as follows:
14-15          Sec. 85.2021.  DRILLING PERMIT FEE.  (a)  With each
14-16    application or materially amended application for a permit to
14-17    drill, deepen, plug back, or reenter a well, the applicant shall
14-18    submit to the commission a nonrefundable fee of:
14-19                (1)  $200 [$100] if the total depth of the well is
14-20    2,000 feet or less;
14-21                (2)  $225 [$125] if the total depth of the well is
14-22    greater than 2,000 feet but less than or equal to 4,000 feet;
14-23                (3)  $250 [$150] if the total depth of the well is
14-24    greater than 4,000 feet but less than or equal to 9,000 feet;
14-25                (4)  $300 [$200] if the total depth of the well is
14-26    greater than 9,000 feet.
 15-1          (b)  An applicant shall submit an additional nonrefundable
 15-2    fee of $200 when a Rule 37 spacing or a Rule 38 density exception
 15-3    review is requested.
 15-4          (c)  An applicant shall submit an additional nonrefundable
 15-5    fee of $150 [$50] when requesting that the commission expedite the
 15-6    application for a permit to drill, deepen, plug back, or reenter a
 15-7    well.
 15-8          [(c)  With each application for an extension of time to plug
 15-9    a well pursuant to commission rules, an applicant shall submit to
15-10    the commission a nonrefundable fee of $100, unless the applicant
15-11    has filed a bond under Section 91.1041 or Section 91.1042 of this
15-12    code.]
15-13          (d)  All fees collected under this section shall be deposited
15-14    in the state oil-field cleanup fund.
15-15          SECTION 11.  Effective September 1, 2004, Subdivision (2),
15-16    Subsection (a), Section 89.002, Natural Resources Code, is amended
15-17    to read as follows:
15-18                (2)  "Operator" means a person who assumes
15-19    responsibility for the physical operation and control of a well as
15-20    shown by a form the person files with the commission and the
15-21    commission approves.  The commission may not require a person to
15-22    assume responsibility for a well as a condition to being permitted
15-23    to assume responsibility for another well.  In the event of a sale
15-24    or conveyance of an unplugged well or the right to operate an
15-25    unplugged well, a person ceases being the operator for the purpose
15-26    of Section 89.011 only if the well was in compliance with
 16-1    commission rules relating to safety or the prevention or control of
 16-2    pollution at the time of sale or conveyance and once the person who
 16-3    acquires the well or right to operate the well:
 16-4                      (A)  specifically identifies the well as a well
 16-5    for which the person assumes plugging responsibility on forms
 16-6    required and approved by the commission;
 16-7                      (B)  has a commission-approved organization
 16-8    report as required by Section 91.142;
 16-9                      (C)  has a commission-approved bond, letter of
16-10    credit, or cash deposit [or other form of financial security] under
16-11    Sections 91.103-91.107 covering the well; and
16-12                      (D)  places the well in compliance with
16-13    commission rules.
16-14          SECTION 12.  Section 89.011, Natural Resources Code, is
16-15    amended to read as follows:
16-16          Sec. 89.011.  DUTY OF OPERATOR.  (a)  The operator of a well
16-17    shall properly plug the well when required and in accordance with
16-18    the commission's rules that are in effect at the time of the
16-19    plugging.
16-20          (b)  If useable quality water zones are present, the operator
16-21    shall verify the placement of the plug at the base of the deepest
16-22    fresh water zone required to be protected.   The well is considered
16-23    to have been properly plugged only when the verification is
16-24    satisfactory and meets commission requirements.
16-25          (c)  If, for the use of the surface owner, the operator of
16-26    the well plugs the well back to produced fresh water, the duty of
 17-1    the operator to properly plug the well ends only when:
 17-2                (1)  the well has been properly plugged in accordance
 17-3    with commission requirements; and
 17-4                (2)  the surface owner has obtained a permit for the
 17-5    well from the groundwater conservation district, if applicable.
 17-6          (d)  Subsections (b) and (c) apply only to wells plugged on
 17-7    or after the effective date of this Act.
 17-8          (e)  The duty of a person to plug an unplugged well that has
 17-9    ceased operation ends only if the person's interest in the well is
17-10    sold or conveyed while the well is in compliance with rules of the
17-11    commission relating to safety or the prevention or control of
17-12    pollution and the provisions of Sections 89.002(a)(2)(A)-(D) have
17-13    been met.  The person acquiring the seller's interest through such
17-14    a sale or conveyance succeeds the seller as the operator of the
17-15    well for the purpose of plugging responsibility once the provisions
17-16    of Sections 89.002(a)(2)(A)-(D) have been met.
17-17          SECTION 13.  Subsection (c), Section 89.043, Natural
17-18    Resources Code, is amended to read as follows:
17-19          (c)  Not later than [On or before] the 30th day before the
17-20    date the commission enters into a contract to plug a delinquent
17-21    inactive well, the commission shall send a notice by certified mail
17-22    to the operator of the well at the address last reported to the
17-23    commission as required by Section 91.142 and commission rules.  The
17-24    notice shall direct the operator to plug the well and shall state
17-25    that:
17-26                (1)  the commission may plug the well and foreclose its
 18-1    statutory lien under Section 89.083 unless the operator requests a
 18-2    hearing not later than the 10th day after the date the operator
 18-3    receives the notice;
 18-4                (2)  if the commission forecloses its statutory lien
 18-5    under Section 89.083 [plugs the well], all well-site equipment will
 18-6    be presumed to have been abandoned and the commission may dispose
 18-7    of the equipment and hydrocarbons from the well as provided by
 18-8    Section 89.085;
 18-9                (3)  if the commission plugs the well, the commission:
18-10                      (A)  by order may require the operator to
18-11    reimburse the commission for the plugging costs; or
18-12                      (B)  may request the attorney general to file
18-13    suit against the operator to recover those costs; [and]
18-14                (4)  the commission has a statutory lien on all
18-15    well-site equipment under Section 89.083; and
18-16                (5)  the lien described by Subdivision (4) is
18-17    foreclosed by operation of law if the commission does not receive a
18-18    valid and timely request for a hearing before the 15th day after
18-19    the date the notice is mailed.
18-20          SECTION 14.  Subsection (c), Section 89.083, Natural
18-21    Resources Code, is amended to read as follows:
18-22          (c)  The lien may be foreclosed by judicial action or
18-23    commission order at any time after notice and an opportunity for a
18-24    hearing.  If notice is mailed under Section 89.043 and if the lien
18-25    is not previously foreclosed, the lien is foreclosed by operation
18-26    of law on the 15th day after the date the notice is mailed unless
 19-1    the commission has received a valid and timely request for a
 19-2    hearing before that date.  [The commission may foreclose on the
 19-3    lien by entering into a plugging contract.]  The commission is not
 19-4    required to give notice or an opportunity for a hearing to
 19-5    subordinate lienholders or nonoperators before foreclosing the lien
 19-6    [entering into a plugging contract].
 19-7          SECTION 15.  Subsections (a), (g), and (h), Section 89.085,
 19-8    Natural Resources Code, are amended to read as follows:
 19-9          (a)  When the commission forecloses its lien under Section
19-10    89.083 on [enters into a contract to plug] a delinquent inactive
19-11    well, well-site equipment and any amount of hydrocarbons from the
19-12    well that is stored on the lease are presumed to have been
19-13    abandoned and may be disposed of by the commission in a
19-14    commercially reasonable manner by either or both of the following
19-15    methods:
19-16                (1)  entering into a plugging contract that provides
19-17    [may provide] that the person plugging or cleaning up pollution, or
19-18    both, will take title to well-site equipment, hydrocarbons from the
19-19    well that are stored on the lease, or hydrocarbons recovered during
19-20    the plugging operation in exchange for a sum of money deducted as a
19-21    credit from the contract price; or
19-22                (2)  selling the well-site equipment, hydrocarbons from
19-23    the well that are stored on the lease, or hydrocarbons recovered
19-24    during the plugging operation [may be sold] at a public auction or
19-25    a public or private sale.
19-26          (g)  The notice required by Subsection (f) of this section
 20-1    must include [shall state]:
 20-2                (1)  the lease name;
 20-3                (2)  the well number;
 20-4                (3)  the county in which the well is located;
 20-5                (4)  the abstract number of the property on which the
 20-6    lease is situated;
 20-7                (5)  the commission lease or gas well identification
 20-8    number or drilling permit number;
 20-9                (6)  a list of the property disposed of under this
20-10    section; and
20-11                (7)  a statement that any person who has a legal or
20-12    equitable ownership or security interest in the equipment or
20-13    hydrocarbons that was in existence on the date the commission
20-14    foreclosed its statutory lien [entered into a contract to plug or
20-15    clean up the well] may file a claim with the commission.
20-16          (h)  Not later than the 180th day after the date the
20-17    well-site equipment or hydrocarbons are disposed of under this
20-18    section, the commission shall publish a notice that states:
20-19                (1)  the lease name;
20-20                (2)  the well number;
20-21                (3)  the county in which the well is located;
20-22                (4)  the commission lease or gas well identification
20-23    number or drilling permit number; and
20-24                (5)  that equipment or hydrocarbons if applicable from
20-25    the well and lease were disposed of under this section and that any
20-26    person who has a legal or equitable ownership or security interest
 21-1    in the equipment or hydrocarbons that was in existence on the date
 21-2    the commission foreclosed its statutory lien [entered into a
 21-3    contract to plug or clean up the well] may file a claim with the
 21-4    commission.
 21-5          SECTION 16.  Subsections (a) and (c), Section 89.086, Natural
 21-6    Resources Code, are amended to read as follows:
 21-7          (a)  A person with a legal or equitable ownership or security
 21-8    interest in well-site equipment or hydrocarbons disposed of under
 21-9    Section 89.085 of this code may make a claim against the oil-field
21-10    cleanup fund unless an element of the transaction giving rise to
21-11    the interest occurs after the commission forecloses its statutory
21-12    lien under Section 89.083 [enters into a plugging contract].
21-13          (c)  A claimant must identify the well-site equipment or
21-14    hydrocarbons in which the claimant has an interest and state the
21-15    amount of the property interest as of the date the commission
21-16    foreclosed its statutory lien under Section 89.083 [entered into
21-17    the plugging contract].
21-18          SECTION 17.  Subsections (a) and (b), Section 91.1013,
21-19    Natural Resources Code, are amended to read as follows:
21-20          (a)  With each application for a fluid injection well permit,
21-21    the applicant shall submit to the commission a nonrefundable fee of
21-22    $200 [$100].  In this section, "fluid injection well" means any
21-23    well used to inject fluid or gas into the ground in connection with
21-24    the exploration or production of oil or gas other than an oil and
21-25    gas waste disposal well regulated by the commission pursuant to
21-26    Chapter 27, Water Code.
 22-1          (b)  With each application for a permit to discharge to
 22-2    surface water under this chapter and commission rules, other than a
 22-3    permit for a discharge that meets National Pollutant Discharge
 22-4    Elimination System requirements for agricultural or wildlife use,
 22-5    the applicant shall submit to the commission a nonrefundable fee of
 22-6    $300 [$200].
 22-7          SECTION 18.  Effective September 1, 2004, Section 91.103,
 22-8    Natural Resources Code, is amended to read as follows:
 22-9          Sec. 91.103.  PERSONS REQUIRED TO EXECUTE BOND, LETTER OF
22-10    CREDIT, OR CASH DEPOSIT [OR ALTERNATE FORM OF FINANCIAL SECURITY].
22-11    Any person, including any firm, partnership, joint stock
22-12    association, corporation, or other organization, required to file
22-13    an organization report under Section 91.142 of this code shall
22-14    execute and file with the commission a bond, letter of credit, or
22-15    cash deposit [or alternate form of financial security].
22-16          SECTION 19.  Subsections (b) and (c), Section 91.104, Natural
22-17    Resources Code, are amended to read as follows:
22-18          (b)  A person required to file a bond or alternate form of
22-19    financial security under Section 91.103 may choose to file:
22-20                (1)  an individual bond as provided under Section
22-21    91.1041;
22-22                (2)  a blanket bond as provided under Section 91.1042;
22-23                (3)  a letter of credit or cash deposit in the same
22-24    amount as required for an individual bond under Section 91.1041 or
22-25    a blanket bond under Section 91.1042;
22-26                (4)  a nonrefundable annual fee of $1,000 [$100], if:
 23-1                      (A)  the commission determines that individual
 23-2    and blanket bonds as specified by Subdivisions (1) and (2) are not
 23-3    obtainable at reasonable prices; and
 23-4                      (B)  the person can demonstrate to the commission
 23-5    an acceptable record of compliance with all commission rules,
 23-6    orders, licenses, permits, or certificates that relate to safety or
 23-7    the prevention or control of pollution for the previous 48 months
 23-8    and the person and, if a firm, partnership, joint stock
 23-9    association, corporation, or other organization, its officers,
23-10    directors, general partners, or owners of more than 25 percent
23-11    ownership interest or any trustee:
23-12                            (i) [(A)]  has no outstanding violations of
23-13    such commission rules, orders, licenses, permits, or certificates;
23-14                            (ii) [(B)]  has paid all administrative,
23-15    civil, and criminal penalties, if any, relating to any violation of
23-16    such commission rules, orders, licenses, permits, or certificates;
23-17    and
23-18                            (iii) [(C)]  has paid all reimbursements of
23-19    any costs and expenses incurred by the commission in relation to
23-20    any violation of such commission rules, orders, licenses, permits,
23-21    or certificates; or
23-22                (5) [(4)]  a nonrefundable annual fee equal to 12-1/2
23-23    [three] percent of the bond that otherwise would be required[; or]
23-24                [(5)  to give a first lien on tangible personal
23-25    property associated with oil and gas production whose salvage value
23-26    equals the value of an individual bond under Section 91.1041 or the
 24-1    value of a blanket bond under Section 91.1042 that otherwise would
 24-2    be required].
 24-3          (c)  A person who chooses to file a form of financial
 24-4    security other than a bond, letter of credit, or cash deposit shall
 24-5    also submit a fee of $300 [$100] for each application to extend the
 24-6    time to plug a well in accordance with Section 85.2021 [of this
 24-7    code].
 24-8          SECTION 20.  Effective September 1, 2004, Section 91.104,
 24-9    Natural Resources Code, is amended to read as follows:
24-10          Sec. 91.104.  BONDS, LETTERS OF CREDIT, AND CASH DEPOSITS
24-11    [AND ALTERNATE FORMS OF FINANCIAL SECURITY].  (a)  The commission
24-12    shall require a bond, letter of credit, or cash deposit [or an
24-13    alternate form of financial security] to be filed with the
24-14    commission as provided by Subsection (b) of this section.
24-15          (b)  A person required to file a bond, letter of credit, or
24-16    cash deposit under Section 91.103 who is an inactive operator or
24-17    who operates one or more wells and is not involved in any other
24-18    activities that require the filing of a bond, letter of credit, or
24-19    cash deposit must, at the time of filing or renewing an
24-20    organization report required by Section 91.142, [may choose to]
24-21    file:
24-22                (1)  an individual bond as provided under Section
24-23    91.1041;
24-24                (2)  a blanket bond as provided under Section 91.1042;
24-25    or
24-26                (3)  a letter of credit or cash deposit in the same
 25-1    amount as required for an individual bond under Section 91.1041 or
 25-2    a blanket bond under Section 91.1042 [nonrefundable annual fee of
 25-3    $100, if the person can demonstrate to the commission an acceptable
 25-4    record of compliance with all commission rules, orders, licenses,
 25-5    permits, or certificates that relate to safety or the prevention or
 25-6    control of pollution for the previous 48 months and the person and,
 25-7    if a firm, partnership, joint stock association, corporation, or
 25-8    other organization, its officers, directors, general partners, or
 25-9    owners of more than 25 percent ownership interest or any trustee:]
25-10                      [(A)  has no outstanding violations of such
25-11    commission rules, orders, licenses, permits, or certificates;]
25-12                      [(B)  has paid all administrative, civil, and
25-13    criminal penalties, if any, relating to any violation of such
25-14    commission rules, orders, licenses, permits, or certificates; and]
25-15                      [(C)  has paid all reimbursements of any costs
25-16    and expenses incurred by the commission in relation to any
25-17    violation of such commission rules, orders, licenses, permits, or
25-18    certificates;]
25-19                [(4)  a nonrefundable annual fee equal to three percent
25-20    of the bond that otherwise would be required; or]
25-21                [(5)  to give a first lien on tangible personal
25-22    property associated with oil and gas production whose salvage value
25-23    equals the value of an individual bond under Section 91.1041 or the
25-24    value of a blanket bond under Section 91.1042 that otherwise would
25-25    be required].
25-26          [(c)  A person who chooses to file a form of financial
 26-1    security other than a bond shall also submit a fee of $100 for each
 26-2    application to extend the time to plug a well in accordance with
 26-3    Section 85.2021 of this code.]
 26-4          SECTION 21.  Section 91.1041, Natural Resources Code, is
 26-5    amended to read as follows:
 26-6          Sec. 91.1041.  INDIVIDUAL BOND.  (a)  A person required to
 26-7    file a bond or alternate form of financial security under Section
 26-8    91.103 who operates one or more wells may file a bond in an amount
 26-9    equal to $2 for each foot of well depth for each well.
26-10          (b)  Notwithstanding Subsection (a), the commission by rule
26-11    shall set the amount of the bond for an operator of one or more bay
26-12    or offshore wells at a reasonable amount that exceeds the amount
26-13    provided by Subsection (a).
26-14          SECTION 22.  Effective September 1, 2004, Section 91.1041,
26-15    Natural Resources Code, is amended to read as follows:
26-16          Sec. 91.1041.  INDIVIDUAL BOND.  (a)  A person required to
26-17    file a bond, letter of credit, or cash deposit under Section 91.103
26-18    who operates one or more wells may file a bond in an amount equal
26-19    to $2 for each foot of well depth for each well.
26-20          (b)  Notwithstanding Subsection (a), the commission by rule
26-21    shall set the amount of the bond for an operator of one or more bay
26-22    or offshore wells at a reasonable amount that exceeds the amount
26-23    provided by Subsection (a).
26-24          SECTION 23.  Section 91.1042, Natural Resources Code, is
26-25    amended to read as follows:
26-26          Sec. 91.1042.  BLANKET BOND.  (a)  A person required to file
 27-1    a bond or alternate form of financial security under Section 91.103
 27-2    may file a blanket bond to cover all wells and operations for which
 27-3    a bond or alternate form of financial security is required as
 27-4    follows:
 27-5                (1)  a person who operates 10 or fewer wells or
 27-6    performs other operations shall file a $25,000 blanket bond;
 27-7                (2)  a person who operates more than 10 but fewer than
 27-8    100 wells shall file a $50,000 blanket bond; and
 27-9                (3)  a person who operates 100 or more wells shall file
27-10    a $250,000 blanket bond.
27-11          (b)  Notwithstanding Subsection (a), the commission by rule
27-12    shall set the amount of the bond for an operator of bay or offshore
27-13    wells at a reasonable amount that exceeds the amount provided by
27-14    Subsection (a)(1), (2), or (3), as applicable.
27-15          SECTION 24.  Effective September 1, 2004, Section 91.1042,
27-16    Natural Resources Code, is amended to read as follows:
27-17          Sec. 91.1042.  BLANKET BOND.  (a)  A person required to file
27-18    a bond, letter of credit, or cash deposit under Section 91.103 may
27-19    file a blanket bond to cover all wells [and operations] for which a
27-20    bond, letter of credit, or cash deposit is required as follows:
27-21                (1)  a person who operates 10 or fewer wells [or
27-22    performs other operations] shall file a $25,000 blanket bond;
27-23                (2)  a person who operates more than 10 but fewer than
27-24    100 wells shall file a $50,000 blanket bond; and
27-25                (3)  a person who operates 100 or more wells shall file
27-26    a $250,000 blanket bond.
 28-1          (b)  Notwithstanding Subsection (a), the commission by rule
 28-2    shall set the amount of the bond for an operator of bay or offshore
 28-3    wells at a reasonable amount that exceeds the amount provided by
 28-4    Subsection (a)(1), (2), or (3), as applicable.
 28-5          SECTION 25.  Effective immediately, Section 91.107, Natural
 28-6    Resources Code, is amended to read as follows:
 28-7          Sec. 91.107.  NEW BOND [OR ALTERNATE FORM OF FINANCIAL
 28-8    SECURITY].  Notwithstanding Section 91.104, if an active or
 28-9    inactive [If a] well [covered by a bond or alternate form of
28-10    financial security] is transferred, sold, or assigned by its
28-11    operator, the commission shall require the party acquiring the well
28-12    to file a new bond [or alternate form of financial security] as
28-13    provided by Section 91.104(b)(1) or (2) [this subchapter], and the
28-14    [bond or alternate form of] financial security of the prior
28-15    operator shall continue to be required and to remain in effect, and
28-16    the commission may not approve the transfer of operatorship, until
28-17    the new bond [or alternate form of financial security] is provided
28-18    or the commission determines that the bond [financial security]
28-19    previously submitted to the commission by the person acquiring the
28-20    well complies with this subchapter.  A transfer of a well from one
28-21    entity to another entity under common ownership is a transfer for
28-22    purposes of this section.
28-23          SECTION 26.  Effective September 1, 2001, Section 91.107,
28-24    Natural Resources Code, is amended to read as follows:
28-25          Sec. 91.107.  NEW BOND, LETTER OF CREDIT, OR CASH DEPOSIT [OR
28-26    ALTERNATE FORM OF FINANCIAL SECURITY].  Notwithstanding Section
 29-1    91.104, if an active or inactive [If a] well [covered by a bond or
 29-2    alternate form of financial security] is transferred, sold, or
 29-3    assigned by its operator, the commission shall require the party
 29-4    acquiring the well to file a new bond, letter of credit, or cash
 29-5    deposit [or alternate form of financial security] as provided by
 29-6    Section 91.104(b)(1), (2), or (3) [this subchapter], and the [bond
 29-7    or alternate form of] financial security of the prior operator
 29-8    shall continue to be required and to remain in effect, and the
 29-9    commission may not approve the transfer of operatorship, until the
29-10    new bond, letter of credit, or cash deposit [or alternate form of
29-11    financial security] is provided or the commission determines that
29-12    the bond, letter of credit, or cash deposit [financial security]
29-13    previously submitted to the commission by the person acquiring the
29-14    well complies with this subchapter.  A transfer of a well from one
29-15    entity to another entity under common ownership is a transfer for
29-16    purposes of this section.
29-17          SECTION 27.  Effective September 1, 2004, Section 91.107,
29-18    Natural Resources Code, is amended to read as follows:
29-19          Sec. 91.107.  NEW BOND, LETTER OF CREDIT, OR CASH DEPOSIT [OR
29-20    ALTERNATE FORM OF FINANCIAL SECURITY].  If an active or inactive
29-21    [a] well [covered by a bond or alternate form of financial
29-22    security] is transferred, sold, or assigned by its operator, the
29-23    commission shall require the party acquiring the well to file a new
29-24    bond, letter of credit, or cash deposit [or alternate form of
29-25    financial security] as provided by Section 91.104(b) [this
29-26    subchapter], and the [bond or alternate form of] financial security
 30-1    of the prior operator shall continue to be required and to remain
 30-2    in effect, and the commission may not approve the transfer of
 30-3    operatorship, until the new bond, letter of credit, or cash deposit
 30-4    [or alternate form of financial security] is provided or the
 30-5    commission determines that the bond, letter of credit, or cash
 30-6    deposit [financial security] previously submitted to the commission
 30-7    by the person acquiring the well complies with this subchapter.  A
 30-8    transfer of a well from one entity to another entity under common
 30-9    ownership is a transfer for purposes of this section.
30-10          SECTION 28.  Section 91.108, Natural Resources Code, is
30-11    amended to read as follows:
30-12          Sec. 91.108.  DEPOSIT AND USE OF FUNDS.  Subject to the
30-13    refund provisions of Section 91.1091 [of this code], proceeds from
30-14    bonds and other financial security required pursuant to this
30-15    chapter shall be deposited in the oil-field cleanup fund and,
30-16    notwithstanding Sections 91.112 and 91.113, may be used only for
30-17    actual well plugging and surface remediation.
30-18          SECTION 29.  Effective September 1, 2004, Section 91.109,
30-19    Natural Resources Code, is amended to read as follows:
30-20          Sec. 91.109.  FINANCIAL SECURITY FOR PERSONS INVOLVED IN
30-21    ACTIVITIES OTHER THAN OPERATION OF WELLS [DISPOSAL SITE BOND].
30-22    (a)  A person applying for or acting under a commission permit to
30-23    store, handle, treat, reclaim, or dispose of oil and gas waste may
30-24    be required by the commission to maintain a performance bond or
30-25    other form of financial security conditioned that the permittee
30-26    will operate and close the storage, handling, treatment,
 31-1    reclamation, or disposal site in accordance with state law,
 31-2    commission rules, and the permit to operate the site.  However,
 31-3    this section does not authorize the commission to require a bond or
 31-4    other form of financial security for saltwater disposal pits,
 31-5    emergency saltwater storage pits (including blow-down pits),
 31-6    collecting pits, or skimming pits provided that such pits are used
 31-7    in conjunction with the operation of an individual oil or gas
 31-8    lease.  Subject to the refund provisions of Section 91.1091 of this
 31-9    code, proceeds from any bond or other form of financial security
31-10    required by this section shall be placed in the oil-field cleanup
31-11    fund.  Each bond or other form of financial security shall be
31-12    renewed and continued in effect until the conditions have been met
31-13    or release is authorized by the commission.
31-14          (b)  In addition to the financial security requirements of
31-15    Subsection (a) and Section 91.104(b), a person required to file a
31-16    bond, letter of credit, or cash deposit under Section 91.103 who is
31-17    involved in activities other than the operation of wells must file
31-18    the bond, letter of credit, or cash deposit at the time of filing
31-19    or renewing an organization report required by Section 91.142 in an
31-20    amount equal to:
31-21                (1)  $250,000; or
31-22                (2)  a lesser amount determined by the commission if
31-23    the person is able to demonstrate that the risk associated with an
31-24    operation or group of operations warrants a lesser amount.
31-25          SECTION 30.  Section 91.111, Natural Resources Code, is
31-26    amended by amending Subsections (b) and (c) and adding Subsection
 32-1    (e) to read as follows:
 32-2          (b)  The commission shall certify to the comptroller the date
 32-3    on which the balance in the fund equals or exceeds $20 [$10]
 32-4    million.  The oil-field cleanup regulatory fees on oil and gas
 32-5    shall not be collected or required to be paid on or after the first
 32-6    day of the second month following the certification, except that
 32-7    the comptroller shall resume collecting the fees on receipt of a
 32-8    commission certification that the fund has fallen below $10 [$6]
 32-9    million.  The comptroller shall continue collecting the fees until
32-10    collections are again suspended in the manner provided by this
32-11    subsection.
32-12          (c)  The fund consists of:
32-13                (1)  penalties imposed under Section 85.381 for
32-14    violation of a law, order, or rule relating to well plugging
32-15    requirements;
32-16                (2)  proceeds from bonds and other financial assurances
32-17    required by this chapter, subject to the refund provisions of
32-18    Section 91.1091;
32-19                (3)  private contributions, including contributions
32-20    made under Section 89.084;
32-21                (4)  expenses collected under Section 89.083;
32-22                (5)  fees imposed under Section 85.2021;
32-23                (6)  civil penalties collected for violations of
32-24    Chapter 89 or of rules or orders relating to plugging that are
32-25    adopted under this code;
32-26                (7)  proceeds collected under Sections 89.085 and
 33-1    91.115;
 33-2                (8)  interest earned on the funds deposited in the
 33-3    fund;
 33-4                (9)  fees collected under Section 91.104;
 33-5                (10)  civil penalties or costs recovered under Section
 33-6    91.457 or 91.459;
 33-7                (11)  oil and gas waste hauler permit application fees
 33-8    collected under Section 29.015, Water Code;
 33-9                (12)  costs recovered under Section 91.113(f);
33-10                (13)  hazardous oil and gas waste generation fees
33-11    collected under Section 91.605;
33-12                (14)  oil-field cleanup regulatory fees on oil
33-13    collected under Section 81.116;
33-14                (15)  oil-field cleanup regulatory fees on gas
33-15    collected under Section 81.117;
33-16                (16)  fees for a reissued certificate collected under
33-17    Section 85.167;
33-18                (17)  fees collected under Section 91.1013;
33-19                (18)  fees collected under Section 89.088;
33-20                (19)  penalties collected under Section 81.0531; [and]
33-21                (20)  fees collected under Section 91.142;
33-22                (21)  fees collected under Section 91.654;
33-23                (22)  costs recovered under Sections 91.656 and 91.657;
33-24                (23)  two-thirds of the fees collected under Section
33-25    81.0521; and
33-26                (24)  legislative appropriations.
 34-1          (e)  The commission, through the legislative appropriations
 34-2    request process, shall establish specific performance goals for the
 34-3    oil-field cleanup fund for the next biennium, including goals for
 34-4    the number of:
 34-5                (1)  site investigations and environmental assessments
 34-6    to be conducted;
 34-7                (2)  abandoned wells to be plugged; and
 34-8                (3)  surface locations to be remediated.
 34-9          SECTION 31.  Section 91.112, Natural Resources Code, is
34-10    amended to read as follows:
34-11          Sec. 91.112.  PURPOSE OF THE FUND.  (a)  Money in the fund
34-12    may be used by the commission or its employees or agents for:
34-13                (1)  conducting a site investigation or environmental
34-14    assessment to determine:
34-15                      (A)  the nature and extent of contamination
34-16    caused by oil and gas wastes or other substances or materials
34-17    regulated by the commission under Section 91.101; and
34-18                      (B)  the measures that should be taken to control
34-19    or clean up the wastes, substances, or materials described in
34-20    Paragraph (A);
34-21                (2)  controlling or cleaning up oil and gas wastes or
34-22    other substances or materials regulated by the commission under
34-23    Section 91.101 that are causing or are likely to cause the
34-24    pollution of surface or subsurface water, consistent with Section
34-25    91.113;
34-26                (3)  plugging abandoned wells and administering or
 35-1    enforcing permits, orders, and rules relating to the commission's
 35-2    authority to prevent pollution under this chapter, Chapter 89, or
 35-3    any other law administered or enforced by the commission under
 35-4    Title 3;
 35-5                (4)  implementing Subchapter N and enforcing rules,
 35-6    orders, and permits adopted or issued under that subchapter; [and]
 35-7                (5)  implementing the voluntary cleanup program under
 35-8    Subchapter O; and
 35-9                (6)  preparing the report required under Subsection
35-10    (b).
35-11          (b)  The commission shall submit to the legislature and make
35-12    available to the public, annually, a report that reviews the extent
35-13    to which money provided under Section 91.111 has enabled the
35-14    commission to better protect the environment and enhance the income
35-15    of the oil-field cleanup fund.  The report shall include:
35-16                (1)  the number of wells plugged, by region;
35-17                (2)  the number of wells abandoned, by region;
35-18                (3)  the number of inactive wells not currently in
35-19    compliance with commission rules, by region;
35-20                (4)  the status of enforcement proceedings for all
35-21    wells in violation of commission rules and the time period during
35-22    which the wells have been in violation, by region in which the
35-23    wells are located;
35-24                (5)  the number of surface locations remediated, by
35-25    region;
35-26                (6)  a detailed accounting of expenditures of money in
 36-1    the fund, including expenditures for site investigations and
 36-2    environmental assessments, plugging of abandoned wells, remediation
 36-3    of surface locations, and staff salaries and other administrative
 36-4    expenses;
 36-5                (7)  the method by which the commission sets priorities
 36-6    by which it determines the order in which abandoned wells are
 36-7    plugged;
 36-8                (8) [(6)]  a projection of the amount of money needed
 36-9    for the next biennium for conducting site investigations and
36-10    environmental assessments, plugging abandoned wells, and
36-11    remediating surface locations; [and]
36-12                (9) [(7)]  the status of implementation of the
36-13    provisions of Section 89.085 relating to possession and sale of
36-14    equipment to recover plugging costs; and
36-15                (10)  the number of sites successfully remediated under
36-16    the voluntary cleanup program under Subchapter O, by region.
36-17          SECTION 32.  Subchapter D, Chapter 91, Natural Resources
36-18    Code, is amended by adding Sections 91.1131, 91.1132, and 91.1135
36-19    to read as follows:
36-20          Sec. 91.1131.  RISK ASSESSMENT STANDARDS.  (a)  The
36-21    commission by rule may establish risk assessment as the guide for:
36-22                (1)  conducting site investigations and environmental
36-23    assessments; and
36-24                (2)  controlling and cleaning up oil and gas wastes and
36-25    other substances and materials.
36-26          (b)  Rules adopted under this section must provide for:
 37-1                (1)  determining whether an actual or potential risk
 37-2    exists at a site;
 37-3                (2)  screening contaminants at the site to identify
 37-4    those that pose a risk;
 37-5                (3)  developing cleanup standards based on
 37-6    contamination levels that are protective of human health and the
 37-7    environment; and
 37-8                (4)  establishing a reporting mechanism for informing
 37-9    the commission regarding specific remediation activities.
37-10          Sec. 91.1132.  PRIORITIZATION OF HIGH-RISK WELLS.  The
37-11    commission by rule shall develop a system for:
37-12                (1)  identifying abandoned wells that pose a high risk
37-13    of contaminating surface water or groundwater;
37-14                (2)  periodically testing high-risk wells by conducting
37-15    a fluid level test or, if necessary, a pressure test; and
37-16                (3)  giving priority to plugging high-risk wells with
37-17    compromised casings.
37-18          Sec. 91.1135.  OIL-FIELD CLEANUP FUND ADVISORY COMMITTEE.
37-19    (a)  In this section, "committee" means the Oil-Field Cleanup Fund
37-20    Advisory Committee.
37-21          (b)  The committee is composed of 10 members as follows:
37-22                (1)  the presiding officer of the senate committee with
37-23    primary jurisdiction over matters affecting natural resources;
37-24                (2)  the presiding officer of the house committee with
37-25    primary jurisdiction over matters affecting energy resources;
37-26                (3)  one public member appointed by the governor;
 38-1                (4)  one member appointed by the lieutenant governor
 38-2    from the academic field of geology or economics;
 38-3                (5)  one member appointed by the speaker of the house
 38-4    of representatives from the academic field of geology or economics;
 38-5    and
 38-6                (6)  the executive officer, or a person designated by
 38-7    the executive officer, of each of the following organizations:
 38-8                      (A)  the Texas Oil and Gas Association;
 38-9                      (B)  the Texas Independent Producers and Royalty
38-10    Owners Association;
38-11                      (C)  the Panhandle Producers and Royalty Owners
38-12    Association;
38-13                      (D)  the Permian Basin Petroleum Association; and
38-14                      (E)  the Alliance of Energy Producers.
38-15          (c)  An appointed member of the committee serves at the will
38-16    of the authority that appointed the member.
38-17          (d)  The committee shall:
38-18                (1)  meet at least quarterly with the commission;
38-19                (2)  receive information about rules proposed by the
38-20    commission relating to the oil-field cleanup fund;
38-21                (3)  review recommendations for legislation proposed by
38-22    the commission; and
38-23                (4)  monitor the effectiveness of the oil-field cleanup
38-24    fund.
38-25          (e)  The commission shall provide quarterly reports to the
38-26    committee and the Legislative Budget Board that include:
 39-1                (1)  the following information with respect to the
 39-2    period since the last report was provided as well as cumulatively:
 39-3                      (A)  the amount of money deposited in the
 39-4    oil-field cleanup fund;
 39-5                      (B)  the amount of money spent from the fund;
 39-6                      (C)  the balance of the fund;
 39-7                      (D)  the number of wells plugged with money from
 39-8    the fund;
 39-9                      (E)  the number of sites remediated with money
39-10    from the fund; and
39-11                      (F)  the number of wells abandoned; and
39-12                (2)  any additional information or data requested in
39-13    writing by the committee.
39-14          (f)  The committee may:
39-15                (1)  submit to the commission comments of the committee
39-16    regarding proposed rules relating to the oil-field cleanup fund;
39-17    and
39-18                (2)  request reports and other information from the
39-19    commission as necessary to implement this section.
39-20          (g)  Not later than November 15 of each even-numbered year,
39-21    the committee shall report to the governor, lieutenant governor,
39-22    and speaker of the house of representatives on the committee's
39-23    activities.  The report must include:
39-24                (1)  an analysis of any problems with the
39-25    administration of the oil-field cleanup fund; and
39-26                (2)  recommendations for any legislation needed to
 40-1    address any problems identified with the administration of the fund
 40-2    or otherwise needed to further the purposes of the fund.
 40-3          SECTION 33.  Section 91.142, Natural Resources Code, is
 40-4    amended by adding Subsection (g) to read as follows:
 40-5          (g)  An organization report filed under this section must be
 40-6    accompanied by the following fee:
 40-7                (1)  for an operator of not more than 25 wells, $300;
 40-8                (2)  for an operator of more than 25 but not more than
 40-9    100 wells, $500;
40-10                (3)  for an operator of more than 100 wells, $1,000;
40-11                (4)  for an operator of one or more natural gas
40-12    pipelines as classified by the commission, $100;
40-13                (5)  for an operator of one or more service activities
40-14    or facilities, including liquids pipelines as classified by the
40-15    commission, who does not operate any wells, an amount determined by
40-16    the commission but not less than $300 or more than $500;
40-17                (6)  for an operator of one or more service activities
40-18    or facilities, including liquids pipelines as classified by the
40-19    commission, who also operates one or more wells, an amount
40-20    determined by the commission based on the sum of the amounts
40-21    provided by the applicable subdivisions of this subsection but not
40-22    less than $300 or more than $1,000; and
40-23                (7)  for an entity not currently performing operations
40-24    under the jurisdiction of the commission, $300.
40-25          SECTION 34.  Chapter 91, Natural Resources Code, is amended
40-26    by adding Subchapter O to read as follows:
 41-1       SUBCHAPTER O.  RAILROAD COMMISSION VOLUNTARY CLEANUP PROGRAM
 41-2          Sec. 91.651.  DEFINITIONS.  In this subchapter:
 41-3                (1)  "Contaminant" includes a waste, pollutant, or
 41-4    substance regulated by, or that results from an activity under the
 41-5    jurisdiction of, the commission under this chapter, Chapter 141 of
 41-6    this code, or Chapter 27, Water Code.
 41-7                (2)  "Environmental assessment" means the assessment
 41-8    described by Section 91.654.
 41-9                (3)  "Response action" means the cleanup or removal of
41-10    a contaminant from the environment.
41-11                (4)  "Voluntary cleanup" means a response action taken
41-12    under and in compliance with this subchapter.
41-13          Sec. 91.652.  PURPOSE.  The purpose of the voluntary cleanup
41-14    program is to provide an incentive to remediate property by
41-15    removing the liability to the state of lenders, developers, owners,
41-16    and operators who did not cause or contribute to contamination
41-17    released at the site covered by the certificate.  The program does
41-18    not replace other voluntary actions and is restricted to voluntary
41-19    actions.
41-20          Sec. 91.653.  ELIGIBILITY FOR VOLUNTARY CLEANUP PROGRAM.
41-21    (a)  Any site that is contaminated with a contaminant is eligible
41-22    for participation in the voluntary cleanup program except the
41-23    portion of a site that may be subject to a commission order.
41-24          (b)  A person electing to participate in the voluntary
41-25    cleanup program must:
41-26                (1)  enter into a voluntary cleanup agreement as
 42-1    provided by Section 91.656; and
 42-2                (2)  pay all costs of commission oversight of the
 42-3    voluntary cleanup.
 42-4          Sec. 91.654.  APPLICATION TO PARTICIPATE IN VOLUNTARY CLEANUP
 42-5    PROGRAM.  (a)  A person who desires to participate in the voluntary
 42-6    cleanup program under this subchapter must submit to the commission
 42-7    an application and an application fee as prescribed by this
 42-8    section.
 42-9          (b)  An application submitted under this section must:
42-10                (1)  be on a form provided by the commission;
42-11                (2)  contain:
42-12                      (A)  general information concerning:
42-13                            (i)  the person and the person's
42-14    capability, including the person's financial capability, to perform
42-15    the voluntary cleanup;
42-16                            (ii)  the site; and
42-17                            (iii)  the name, address, and telephone
42-18    number of all surface and mineral owners;
42-19                      (B)  other background information requested by
42-20    the commission;
42-21                      (C)  an environmental assessment of the actual or
42-22    threatened release of the contaminant at the site; and
42-23                      (D)  if the person applying is not the surface
42-24    owner, written authorization from the surface owner agreeing to the
42-25    applicant's participation in the program;
42-26                (3)  be accompanied by an application fee of $1,000;
 43-1    and
 43-2                (4)  be submitted according to schedules set by the
 43-3    commission.
 43-4          (c)  The environmental assessment required by Subsection (b)
 43-5    must include:
 43-6                (1)  a legal description of the site;
 43-7                (2)  a description of the physical characteristics of
 43-8    the site;
 43-9                (3)  the operational history of the site to the extent
43-10    that history is known by the applicant;
43-11                (4)  information of which the applicant is aware
43-12    concerning the nature and extent of any relevant contamination or
43-13    release at the site and immediately contiguous to the site, or
43-14    wherever the contamination came to be located; and
43-15                (5)  relevant information of which the applicant is
43-16    aware concerning the potential for human exposure to contamination
43-17    at the site.
43-18          (d)  An application shall be processed in the order in which
43-19    it is received.
43-20          (e)  Fees collected under this section shall be deposited to
43-21    the credit of the oil-field cleanup fund under Section 91.111.
43-22          Sec. 91.655.  REJECTION OF APPLICATION.  (a)  The commission
43-23    may reject an application submitted under Section 91.654 if:
43-24                (1)  a state or federal enforcement action is pending
43-25    that concerns the remediation of the contaminant described in the
43-26    application;
 44-1                (2)  a federal grant requires an enforcement action at
 44-2    the site;
 44-3                (3)  the application is incomplete or inaccurate; or
 44-4                (4)  the site is ineligible under Section 91.653.
 44-5          (b)  If an application is rejected because it is incomplete
 44-6    or inaccurate, the commission, not later than the 45th day after
 44-7    receipt of the application, shall provide the person with a list of
 44-8    all information needed to make the application complete or
 44-9    accurate.  A person may resubmit an application once without
44-10    submitting an additional application fee if the person resubmits
44-11    the application not later than the 45th day after the date the
44-12    commission issues notice that the application has been rejected.
44-13          (c)  If the commission rejects the application, the
44-14    commission shall:
44-15                (1)  notify the person that the application has been
44-16    rejected;
44-17                (2)  explain the reasons for rejection of the
44-18    application; and
44-19                (3)  inform the person that the commission will refund
44-20    half the person's application fee unless the person indicates a
44-21    desire to resubmit the application.
44-22          Sec. 91.656.  VOLUNTARY CLEANUP AGREEMENT.  (a)  Before the
44-23    commission evaluates any plan or report detailing the remediation
44-24    goals and proposed methods of remediation, the person desiring to
44-25    participate in the voluntary cleanup program must enter into a
44-26    voluntary cleanup agreement that sets forth the terms and
 45-1    conditions of the evaluation of the reports and the implementation
 45-2    of work plans.
 45-3          (b)  A voluntary cleanup agreement must provide for:
 45-4                (1)  recovery by the commission of all reasonable
 45-5    costs:
 45-6                      (A)  incurred by the commission in review and
 45-7    oversight of the person's work plan and reports and as a result of
 45-8    the commission's field activities;
 45-9                      (B)  attributable to the voluntary cleanup
45-10    agreement; and
45-11                      (C)  in excess of the amount of fees submitted by
45-12    the applicant under Section 91.654;
45-13                (2)  a schedule of payments to the commission to be
45-14    made by the person for recovery of all commission costs fairly
45-15    attributable to the voluntary cleanup program, including direct and
45-16    indirect costs of overhead, salaries, equipment, and utilities, and
45-17    legal, management, and support costs; and
45-18                (3)  appropriate tasks, deliverables, and schedules.
45-19          (c)  The voluntary cleanup agreement shall:
45-20                (1)  identify all statutes and rules with which the
45-21    person must comply;
45-22                (2)  describe any work plan or report to be submitted
45-23    for review by the commission, including a final report that
45-24    provides all information necessary to verify that all work
45-25    contemplated by the voluntary cleanup agreement has been completed;
45-26                (3)  include a schedule for submitting the information
 46-1    required by Subdivision (2); and
 46-2                (4)  state the technical standards to be applied in
 46-3    evaluating the work plans and reports, with reference to the
 46-4    proposed future land use to be achieved.
 46-5          (d)  If an agreement is not reached between a person desiring
 46-6    to participate in the voluntary cleanup program and the commission
 46-7    on or before the 30th day after good faith negotiations have begun:
 46-8                (1)  the person or the commission may withdraw from the
 46-9    negotiations; and
46-10                (2)  the commission retains the person's application
46-11    fee.
46-12          (e)  The commission may not initiate an enforcement action
46-13    against a person who is in compliance with this section for the
46-14    contamination or release that is the subject of the voluntary
46-15    cleanup agreement or for activity that resulted in the
46-16    contamination or release.
46-17          Sec. 91.657.  TERMINATION OF AGREEMENT; COST RECOVERY.
46-18    (a)  The commission or the person in its sole discretion may
46-19    terminate the agreement by giving 15 days' advance written notice
46-20    to the other.  Only those costs incurred or obligated by the
46-21    commission before notice of termination of the agreement are
46-22    recoverable under the agreement if the agreement is terminated.
46-23          (b)  Termination of the agreement does not affect any right
46-24    the commission has under other law to recover costs.
46-25          (c)  If the person does not pay to the commission the state's
46-26    costs associated with the voluntary cleanup before the 31st day
 47-1    after the date the person receives notice that the costs are due
 47-2    and owing, the attorney general, at the request of the commission,
 47-3    shall bring an action in the name of the state in Travis County to
 47-4    recover the amount owed and reasonable legal expenses, including
 47-5    attorney's fees, witness costs, court costs, and deposition costs.
 47-6          Sec. 91.658.  VOLUNTARY CLEANUP WORK PLANS AND REPORTS.
 47-7    (a)  After signing a voluntary cleanup agreement, the person shall
 47-8    prepare and submit the appropriate work plans and reports to the
 47-9    commission.
47-10          (b)  The commission shall review and evaluate the work plans
47-11    and reports for accuracy, quality, and completeness.  The
47-12    commission may approve a voluntary cleanup work plan or report or,
47-13    if a work plan or report is not approved, notify the person
47-14    concerning additional information or commitments needed to obtain
47-15    approval.
47-16          (c)  At any time during the evaluation of a work plan or
47-17    report, the commission may request the person to submit additional
47-18    or corrected information.
47-19          (d)  After considering future land use, the commission may
47-20    approve work plans and reports submitted under this section that do
47-21    not require removal or remedy of all discharges, releases, and
47-22    threatened releases at a site if the partial response actions for
47-23    the property:
47-24                (1)  will be completed in a manner that protects human
47-25    health and the environment;
47-26                (2)  will not cause, contribute, or exacerbate
 48-1    discharges, releases, or threatened releases that are not required
 48-2    to be removed or remedied under the work plan; and
 48-3                (3)  will not interfere with or substantially increase
 48-4    the cost of response actions to address the remaining discharges,
 48-5    releases, or threatened releases.
 48-6          Sec. 91.659.  CERTIFICATE OF COMPLETION.  (a)  If the
 48-7    commission determines that a person has successfully completed a
 48-8    voluntary cleanup approved under this subchapter, the commission
 48-9    shall certify that the action has been completed by issuing the
48-10    person a certificate of completion.
48-11          (b)  The certificate of completion must:
48-12                (1)  acknowledge the protection from liability provided
48-13    by Section 91.660;
48-14                (2)  indicate the proposed future land use; and
48-15                (3)  include a legal description of the site and the
48-16    name of the site's surface and mineral owner and mineral operator
48-17    at the time the application to participate in the voluntary cleanup
48-18    program was filed.
48-19          (c)  If the commission determines that the person has not
48-20    successfully completed a voluntary cleanup approved under this
48-21    subchapter, the commission shall notify of this determination the
48-22    person who undertook the voluntary cleanup and the current surface
48-23    and mineral owner and mineral operator of the site that is the
48-24    subject of the cleanup.
48-25          Sec. 91.660.  PERSONS RELEASED FROM LIABILITY.  (a)  A person
48-26    who is not a responsible person under Section 91.113 at the time
 49-1    the person applies to perform a voluntary cleanup:
 49-2                (1)  does not become a responsible person solely
 49-3    because the person signs the application; and
 49-4                (2)  is released, on certification under Section
 49-5    91.659, from all liability to the state for cleanup of areas of the
 49-6    site covered by the certification, except for releases and
 49-7    consequences that the person causes.
 49-8          (b)  A person who is not a responsible person under Section
 49-9    91.113 at the time the commission issues a certificate of
49-10    completion under Section 91.659 is released, on issuance of the
49-11    certificate, from all liability to the state for cleanup of areas
49-12    of the site covered by the certificate, except for releases and
49-13    consequences that the person causes.
49-14          (c)  The release from liability provided by this section does
49-15    not apply to a person who:
49-16                (1)  caused or contributed to the contamination at the
49-17    site covered by the certificate;
49-18                (2)  acquires a certificate of completion by fraud,
49-19    misrepresentation, or knowing failure to disclose material
49-20    information;
49-21                (3)  knows at the time the person acquires an interest
49-22    in the site for which the certificate of completion was issued that
49-23    the certificate was acquired in a manner provided by Subdivision
49-24    (2); or
49-25                (4)  changes land use from the use specified in the
49-26    certificate of completion if the new use may result in increased
 50-1    risks to human health or the environment.
 50-2          Sec. 91.661.  PERMIT NOT REQUIRED.  (a)  A state or local
 50-3    permit is not required for removal or remedial action conducted on
 50-4    a site as part of a voluntary cleanup under this subchapter.  A
 50-5    person shall coordinate a voluntary cleanup with ongoing federal
 50-6    and state waste programs.
 50-7          (b)  The commission by rule shall require that the person
 50-8    conducting the voluntary cleanup comply with any federal or state
 50-9    standard, requirement, criterion, or limitation to which the
50-10    remedial action would otherwise be subject if a permit were
50-11    required.
50-12          SECTION 35.  Sections 113.011, 113.014, 113.015, 113.0511,
50-13    and 113.082, Natural Resources Code, are amended to read as
50-14    follows:
50-15          Sec. 113.011.  REGULATION OF LIQUEFIED PETROLEUM GAS
50-16    ACTIVITIES.  The commission shall administer and enforce the laws
50-17    of this state and the rules and standards of the commission
50-18    relating to liquefied petroleum gas [DIVISION.  There is created
50-19    and organized a separate and distinct division of the commission
50-20    known as the liquefied petroleum gas division or the LPG division].
50-21          Sec. 113.014.  EMPLOYEES.  Sufficient employees shall be
50-22    provided [to the LPG division] for the enforcement of this chapter.
50-23          Sec. 113.015.  FUNDS FOR FINANCING REGULATION OF LPG
50-24    ACTIVITIES [DIVISION].  The commission shall look only to the
50-25    revenue derived from the operation of this chapter and appropriated
50-26    by the legislature for expenses of regulating [conducting the]
 51-1    liquefied petroleum gas activities [division] and administering
 51-2    this chapter.  [The LPG examination fund is established in the
 51-3    state treasury to be used to pay the costs of training, including
 51-4    examinations, seminars, and continuing education programs,
 51-5    administered or sponsored by the commission pursuant to Sections
 51-6    113.087 and 113.088 of this code.  All fees collected pursuant to
 51-7    Sections 113.088 and 113.090(c) of this code relating to training
 51-8    or registration for qualification to perform LPG-related activities
 51-9    shall be credited to this fund.  There is hereby appropriated from
51-10    the fund to the commission all such fees collected.]
51-11          Sec. 113.0511.  LIMITATIONS ON RULEMAKING AUTHORITY.
51-12    (a)  The commission may not adopt rules restricting advertising or
51-13    competitive bidding [or advertising] by a licensee [person
51-14    regulated by the commission] except to prohibit false, misleading,
51-15    or deceptive practices [by the person].
51-16          (b)  In its [The commission may not include in any] rules to
51-17    prohibit false, misleading, or deceptive practices, the commission
51-18    may not include [by a person regulated by the commission] a rule
51-19    that:
51-20                (1)  restricts the [person's] use of any medium for
51-21    advertising;
51-22                (2)  restricts the use of a licensee's [person's]
51-23    personal appearance or [use of his] voice in an advertisement;
51-24                (3)  relates to the size or duration of an
51-25    advertisement by the licensee [person]; or
51-26                (4)  restricts the licensee's [person's] advertisement
 52-1    under a trade name.
 52-2          Sec. 113.082.  CATEGORIES OF LPG ACTIVITIES [LICENSEE]; FEES.
 52-3    (a)  A prospective licensee in LPG may apply to the commission [LPG
 52-4    division] for a license to engage in any one or more of the
 52-5    following categories of LPG activities:
 52-6                (1) [(A)]  container manufacturers/fabricators:  the
 52-7    manufacture, fabrication, assembly, repair, installation,
 52-8    subframing, testing, and sale of LPG containers, including LPG
 52-9    motor or mobile fuel containers and systems, and the repair and
52-10    installation of transport and transfer systems[; and the category
52-11    "A" application and original license fee is an amount not to exceed
52-12    $1,000 as determined by the commission; the annual renewal license
52-13    fee is an amount not to exceed $600 as determined by the
52-14    commission];
52-15                (2) [(B)]  transport outfitters:  the subframing,
52-16    testing, and sale of LPG transport containers, the testing of LPG
52-17    storage containers, the installation, testing, and sale of LPG
52-18    motor or mobile fuel containers and systems, and the installation
52-19    and repair of transport systems, and motor or mobile fuel systems[;
52-20    the category "B" application and original license fee is an amount
52-21    not to exceed $400 as determined by the commission; the annual
52-22    renewal license fee is an amount not to exceed $200 as determined
52-23    by the commission];
52-24                (3) [(C)]  carriers:  the transportation of LPG by
52-25    transport, including the loading and unloading of LPG, and the
52-26    installation and repair of transport systems[; the category "C"
 53-1    application and original license fee is an amount not to exceed
 53-2    $1,000 as determined by the commission; the annual renewal license
 53-3    fee is an amount not to exceed $300 as determined by the
 53-4    commission];
 53-5                (4) [(D)]  general installers and repairmen:  the sale,
 53-6    service, and installation of containers, excluding motor fuel
 53-7    containers, and the service, installation, and repair of piping,
 53-8    certain appliances as defined by rule, excluding recreational
 53-9    vehicle appliances and LPG systems, excluding motor fuel and
53-10    recreational vehicle systems[; the category "D" application and
53-11    original license fee is an amount not to exceed $100 as determined
53-12    by the commission; the annual renewal license fee is an amount not
53-13    to exceed $70 as determined by the commission];
53-14                (5) [(E)]  retail and wholesale dealers:  the storage,
53-15    sale, transportation, and distribution of LPG at retail and
53-16    wholesale, and all other activities included in this section except
53-17    the manufacture, fabrication, assembly, repair, subframing, and
53-18    testing of LPG containers, and except the sale and installation of
53-19    LPG motor or mobile fuel systems that have an engine with a rating
53-20    of more than 25 horsepower[; the category "E" application and
53-21    original license fee is an amount not to exceed $750 as determined
53-22    by the commission; the annual renewal license fee is an amount not
53-23    to exceed $300 as determined by the commission];
53-24                (6) [(F)]  cylinder filling:  the operation of a
53-25    cylinder-filling facility, including cylinder filling, the sale of
53-26    LPG in cylinders, and the replacement of a cylinder valve[; the
 54-1    category "F" application and original license fee is an amount not
 54-2    to exceed $100 as determined by the commission; the annual renewal
 54-3    license fee is an amount not to exceed $50 as determined by the
 54-4    commission];
 54-5                (7) [(G)]  service station:  the operation of an LPG
 54-6    service station filling ASME containers designed for motor and
 54-7    mobile fuel[; the category "G" application and original license fee
 54-8    is an amount not to exceed $100 as determined by the commission;
 54-9    the annual renewal license fee is an amount not to exceed $50 as
54-10    determined by the commission];
54-11                (8) [(H)]  cylinder dealers:  the transportation and
54-12    sale of LPG in cylinders[; the category "H" application and
54-13    original license fee is an amount not to exceed $1,000 as
54-14    determined by the commission; the annual renewal license fee is an
54-15    amount not to exceed $300 as determined by the commission];
54-16                (9) [(I)]  service station and cylinder filling:  any
54-17    service station and cylinder activity set out in Subdivisions (6)
54-18    and (7) [categories "F" and "G" of this section; the category "I"
54-19    application and original license fee is an amount not to exceed
54-20    $150 as determined by the commission; the annual renewal license
54-21    fee is an amount not to exceed $70 as determined by the
54-22    commission];
54-23                (10) [(J)]  service station and cylinder facilities:
54-24    the operation of a cylinder-filling facility, including cylinder
54-25    filling and the sale, transportation, installation, and connection
54-26    of LPG in cylinders, the replacement of cylinder valves, and the
 55-1    operation of an LPG service station as set out in Subdivision (7)
 55-2    [category "G"; the category "J" application and original license
 55-3    fee is an amount not to exceed $1,000 as determined by the
 55-4    commission; the annual renewal license fee is an amount not to
 55-5    exceed $300 as determined by the commission];
 55-6                (11) [(K)]  distribution system:  the sale and
 55-7    distribution of LPG through mains or pipes and the installation and
 55-8    repair of LPG systems[; the category "K" application and original
 55-9    license fee is an amount not to exceed $1,000 as determined by the
55-10    commission; the annual renewal license fee is an amount not to
55-11    exceed $300 as determined by the commission];
55-12                (12) [(L)]  engine fuel:  the sale and installation of
55-13    LPG motor or mobile fuel containers, and the sale and installation
55-14    of LPG motor or mobile fuel systems[; the category "L" application
55-15    and original license fee is an amount not to exceed $100 as
55-16    determined by the commission; the annual renewal license fee is an
55-17    amount not to exceed $50 as determined by the commission];
55-18                (13) [(M)]  recreational vehicle installers and
55-19    repairmen:  the sale, service, and installation of recreational
55-20    vehicle containers, and the installation, repair, and service of
55-21    recreational vehicle appliances, piping, and LPG systems, including
55-22    recreational vehicle motor or mobile fuel systems and containers[;
55-23    the category "M" application and original license fee is an amount
55-24    not to exceed $100 as determined by the commission; the annual
55-25    renewal license fee is an amount not to exceed $70 as determined by
55-26    the commission];
 56-1                (14) [(N)]  manufactured housing installers and
 56-2    repairmen: the service and installation of containers that supply
 56-3    fuel to manufactured housing, and the installation, repair, and
 56-4    service of appliances and piping systems for manufactured housing[;
 56-5    the category "N" application and original license fee is an amount
 56-6    not to exceed $100 as determined by the commission; the annual
 56-7    renewal license fee is an amount not to exceed $70 as determined by
 56-8    the commission];
 56-9                (15) [(O)]  testing laboratory:  the testing of an
56-10    LP-gas container, LP-gas motor fuel systems or mobile fuel systems,
56-11    transfer systems, and transport systems for the purpose of
56-12    determining the safety of the container or systems for LP-gas
56-13    service, including the necessary installation, disconnection,
56-14    reconnecting, testing, and repair of LPG motor fuel systems or
56-15    mobile fuel systems, transfer systems, and transport systems
56-16    involved in the testing of containers; [the category "O"
56-17    application and original license fee is an amount not to exceed
56-18    $400 as determined by the commission; the annual renewal license
56-19    fee is an amount not to exceed $100 as determined by the
56-20    commission;] or
56-21                (16) [(P)]  portable cylinder exchange:  the operation
56-22    of a portable cylinder exchange service, where the sale of LP-gas
56-23    is within a portable cylinder with an LP-gas capacity not to exceed
56-24    21 pounds; the portable cylinders are not filled on site, and no
56-25    other LP-gas activity requiring a license is conducted[; the
56-26    category "P" application and original license fee is an amount not
 57-1    to exceed $100 as determined by the commission; the annual renewal
 57-2    license fee is an amount not to exceed $50 as determined by the
 57-3    commission].
 57-4          (b)  The commission by rule shall establish reasonable
 57-5    application and original license fees and renewal fees for each
 57-6    type of license listed in this section.
 57-7          SECTION 36.  Subsections (b) and (c), Section 113.084,
 57-8    Natural Resources Code, are amended to read as follows:
 57-9          (b)  A prospective licensee shall submit the required
57-10    application together with the original nonrefundable license fee
57-11    established by the commission under [required by] Section 113.082
57-12    [of this code] for each type of license [category] for which an [a
57-13    license] application is made.  The applicant shall submit
57-14    additional information and data with each application as the
57-15    commission may reasonably require.
57-16          (c)  A licensee shall submit the nonrefundable renewal fee
57-17    for each type of [category for which] license [is] sought along
57-18    with information and data the commission may reasonably require.
57-19          SECTION 37.  Section 113.087, Natural Resources Code, is
57-20    amended by amending Subsections (b), (c), and (i) through (m) and
57-21    adding Subsections (n) and (o) to read as follows:
57-22          (b)  Before license issuance, the commission shall require
57-23    the individual designated as the licensee's representative to the
57-24    commission to provide good and sufficient proof through examination
57-25    prepared and administered by the commission of working knowledge of
57-26    this chapter and rules of the commission which affect the type
 58-1    [category] of license for which application is made.  Thereafter,
 58-2    each licensee shall maintain a qualified representative at all
 58-3    times.
 58-4          (c)  Each individual who will be actively supervising those
 58-5    operations requiring any license under this chapter at any outlet
 58-6    or location, as designated by the commission, shall be required to
 58-7    provide good and sufficient proof through examination prepared and
 58-8    administered by the commission that the supervisor has a working
 58-9    knowledge of the safety requirements and penalties in this chapter
58-10    and the rules of the commission which apply to that type [category]
58-11    of license.
58-12          (i)  Not later than the 30th day after the date a person
58-13    takes a licensing [on which an] examination [is administered] under
58-14    this chapter [section], the commission shall notify the person
58-15    [each examinee] of the results of the examination.
58-16          (j)  If the examination is graded or reviewed by a testing
58-17    service:
58-18                (1)  the commission shall notify the person of the
58-19    results of the examination not later than the 14th day after the
58-20    date the commission receives the results from the testing service;
58-21    and
58-22                (2)  if notice of the examination results will be
58-23    delayed for longer than 90 days after the examination date, the
58-24    commission shall notify the person [examinee] of the reason for the
58-25    delay before the 90th day.
58-26          (k)  The commission may require a testing service to notify a
 59-1    person of the results of the person's examination.
 59-2          (l) [(j)]  If requested in writing by a person who fails a
 59-3    [the] licensing examination administered under this chapter
 59-4    [section], the commission shall furnish the person with an analysis
 59-5    of the person's performance on the examination.
 59-6          (m) [(k)]  The commission, by appropriate rule, shall [may]
 59-7    require, in addition to examination requirements as set out in
 59-8    Subsections (b), (c), and (d) of this section:
 59-9                (1)  an examination for technical competence that is
59-10    validated by a recognized educational testing organization or
59-11    similar organization; or
59-12                (2)  attendance at approved academic, trade,
59-13    professional, or commission-sponsored seminars, other continuing
59-14    education programs, and periodic reexaminations.
59-15          (n) [(l)]  Prior to qualifying an individual to perform
59-16    LP-gas work, the commission may establish by rule an initial course
59-17    of instruction for any person who has not yet passed the [category
59-18    of] examination for the LPG activity for which the person seeks
59-19    qualification; for any person who has not maintained qualified
59-20    status, as defined by rule; and for any person whose certification
59-21    has been revoked pursuant to Subchapter F of this code.  If an
59-22    initial course of instruction is established by the commission, it
59-23    shall be available at least once every 180 [90] days.
59-24          (o) [(m)]  The commission by rule may exempt from any
59-25    provision of this section:
59-26                (1)  a journeyman or master plumber licensed by the
 60-1    Texas State Board of Plumbing Examiners;
 60-2                (2)  a person licensed under the Air Conditioning and
 60-3    Refrigeration Contractor License Law (Article 8861, Vernon's Texas
 60-4    Civil Statutes); or
 60-5                (3)  company representatives, operations supervisors,
 60-6    or employees of a testing laboratory that was registered under
 60-7    Section 113.135 prior to the effective date of this subsection.
 60-8          SECTION 38.  Subsections (a) and (c), Section 113.089,
 60-9    Natural Resources Code, are amended to read as follows:
60-10          (a)  If application is made for a license under [category "E"
60-11    of] Section 113.082(a)(5) [113.082 of this code] or for any other
60-12    type of license [category] specified by commission rule, the
60-13    commission, in addition to other requirements, shall have an actual
60-14    inspection conducted of any and all facilities, bulk storage
60-15    equipment, transportation equipment, and dispensing equipment of
60-16    the applicant to verify satisfactory compliance with all current
60-17    safety laws, rules, and practices.  The inspection may be waived by
60-18    the commission on an application resulting solely from a change in
60-19    legal entities under which a current licensee operates.
60-20          (c)  A [category "E"] license under Section 113.082(a)(5) and
60-21    any other type of license specified by commission rule shall not be
60-22    issued until the inspection under Subsection (a) of this section
60-23    verifies the applicant to be in satisfactory compliance with all
60-24    current safety laws, rules, and practices.
60-25          SECTION 39.  Subsections (a) and (b), Section 113.090,
60-26    Natural Resources Code, are amended to read as follows:
 61-1          (a)  The commission by rule may establish reasonable fees for
 61-2    the review of site applications [examination of plans and
 61-3    specifications] related to the installation of containers when site
 61-4    applications [plans and specifications] are reviewed by the
 61-5    commission before such installation is placed into LP-gas service.
 61-6          (b)  The commission by rule may establish reasonable fees for
 61-7    recording the location of containers at public buildings and
 61-8    commercial installations when prior approval of site applications
 61-9    [plans and specifications] is not required.
61-10          SECTION 40.  Subsections (b), (c), and (d), Section 113.091,
61-11    Natural Resources Code, are amended to read as follows:
61-12          (b)  Within 30 days of the notice of denial, an applicant for
61-13    license under this chapter who is denied a license may request a
61-14    hearing to determine whether or not the applicant has complied in
61-15    all respects with the licensing procedure applicable to each type
61-16    [the category or categories] of license sought.  The applicant's
61-17    request for hearing must be in writing and delivered to the
61-18    commission [director of the LP-gas division].
61-19          (c)  A hearing to determine an applicant's compliance with
61-20    the licensing procedure applicable to each type [the category or
61-21    categories] of license sought must be scheduled within 30 days
61-22    following receipt of a request under Subsection (b) of this
61-23    section.
61-24          (d)  If the record made at the hearing supports the
61-25    applicant's claim, the commission shall enter an order in its
61-26    records to that effect, noting each type of license to [the
 62-1    category or categories for] which the applicant is found entitled
 62-2    [to be licensed], and the commission shall have the license or
 62-3    licenses issued.  If the applicant is found unqualified, the
 62-4    commission shall likewise enter an order in its records to that
 62-5    effect, and no license may be issued to the applicant.
 62-6          SECTION 41.  Section 113.093, Natural Resources Code, is
 62-7    amended to read as follows:
 62-8          Sec. 113.093.  LICENSE RENEWAL.  (a)  A person who is
 62-9    otherwise eligible to renew a license may renew an unexpired
62-10    license by paying the required [issued pursuant to this chapter is
62-11    renewable on the timely payment or tender of the] renewal [license]
62-12    fee to the commission before the expiration date of the license
62-13    [each year].  A person whose license has expired may not engage in
62-14    activities that require a license until the license has been
62-15    renewed.
62-16          (b)  A person whose [If a person's] license has been expired
62-17    for [not longer than] 90 days or less[, the person] may renew the
62-18    license by paying to the commission a [the required] renewal fee
62-19    that is equal to 1-1/2 times the normally required [and a fee that
62-20    is one-half of the amount of the] renewal fee [for the license].
62-21          (c)  A person whose [If a person's] license has been expired
62-22    for more [longer] than 90 days but less than one year [two years,
62-23    the person] may renew the license by paying to the commission a
62-24    [all unpaid] renewal [fees and a] fee that is equal to two times
62-25    the normally required [the amount of the unpaid] renewal fee [fees
62-26    for the license].
 63-1          (d)  A person whose [If a person's] license has been expired
 63-2    for one year [two years] or more [longer, the person] may not renew
 63-3    the license.  The person may obtain a new license by complying with
 63-4    the requirements and procedures, including the examination
 63-5    requirements, for obtaining an original license.
 63-6          (e)  A person who was licensed in this state, moved to
 63-7    another state, and is currently licensed and has been in practice
 63-8    in the other state for the two years preceding the date of
 63-9    application may obtain a new license without reexamination.  The
63-10    person must pay to the commission a fee that is equal to two times
63-11    the normally required renewal fee for the license.
63-12          (f)  Not later than the 30th day before the date a person's
63-13    license is scheduled to expire, the commission shall send written
63-14    notice of the impending expiration to the person at the person's
63-15    last known address according to the records of the commission.
63-16          (g)  A renewal license will be issued to a licensee as soon
63-17    as is practicable after compliance with this section, and
63-18    fulfillment of insurance, examination, and seminar requirements
63-19    established by this chapter, and submission of any information and
63-20    data the commission may reasonably require.
63-21          (h) [(f)]  Renewal [license] fees shall be nonrefundable.
63-22          [(g)  At least 15 days before the expiration of a person's
63-23    license the commission shall notify the person in writing of the
63-24    impending license expiration and shall attempt to obtain from the
63-25    person a signed receipt confirming receipt of the notice.]
63-26          SECTION 42.  Subchapter D, Chapter 113, Natural Resources
 64-1    Code, is amended by adding Section 113.096 to read as follows:
 64-2          Sec. 113.096.  PROVISIONAL LICENSE.  (a)  The commission may
 64-3    issue a provisional license to an applicant currently licensed in
 64-4    another jurisdiction who seeks a license in this state and who:
 64-5                (1)  has been licensed in good standing for at least
 64-6    two years in another jurisdiction, including a foreign country,
 64-7    that has licensing requirements substantially equivalent to the
 64-8    requirements of this chapter;
 64-9                (2)  has passed a national or other examination
64-10    recognized by the commission relating to the activities regulated
64-11    under this chapter; and
64-12                (3)  is sponsored by a person licensed by the
64-13    commission under this chapter with whom the provisional license
64-14    holder will practice during the time the person holds a provisional
64-15    license.
64-16          (b)  The commission may waive the requirement of Subsection
64-17    (a)(3) for an applicant if the commission determines that
64-18    compliance with that subsection would be a hardship to the
64-19    applicant.
64-20          (c)  A provisional license is valid until the date the
64-21    commission approves or denies the provisional license holder's
64-22    application for a license.  The commission shall issue a license
64-23    under this chapter to the provisional license holder if:
64-24                (1)  the provisional license holder is eligible to be
64-25    licensed under Section 113.095; or
64-26                (2)  the provisional license holder:
 65-1                      (A)  passes the part of the examination under
 65-2    Section 113.087 that relates to the applicant's knowledge and
 65-3    understanding of the laws and rules relating to the activities
 65-4    regulated under this chapter in this state;
 65-5                      (B)  meets the academic and experience
 65-6    requirements for a license under this chapter; and
 65-7                      (C)  satisfies any other licensing requirements
 65-8    under this chapter.
 65-9          (d)  The commission must approve or deny a provisional
65-10    license holder's application for a license not later than the 180th
65-11    day after the date the provisional license is issued.  The
65-12    commission may extend the 180-day period if the results of an
65-13    examination have not been received by the commission before the end
65-14    of that period.
65-15          (e)  The commission may establish a fee for provisional
65-16    licenses in an amount reasonable and necessary to cover the cost of
65-17    issuing the license.
65-18          SECTION 43.  Subsections (d) and (h), Section 113.097,
65-19    Natural Resources Code, are amended to read as follows:
65-20          (d)  Each [category "C," "E," "H," or "J"] licensee under
65-21    Section 113.082(a)(3), (5), (8), or (10) must carry motor vehicle
65-22    bodily injury and property damage liability coverage on each motor
65-23    vehicle, including trailers and semitrailers, used to transport
65-24    LP-gas.  The commission shall establish by rule a reasonable amount
65-25    of coverage to be maintained, except that coverage shall not be
65-26    less than the amounts required as evidence of financial
 66-1    responsibility under Chapter 601, Transportation Code.
 66-2          (h)  As required by commission rule, a [category "A," "B,"
 66-3    "C," "E," or "O"] licensee under Section 113.082(a)(1), (2), (3),
 66-4    (5), or (15) must carry completed operations or products liability
 66-5    insurance, or both, in a reasonable amount, based on the type or
 66-6    types of licensed activities.
 66-7          SECTION 44.  Subsections (a) and (c), Section 113.098,
 66-8    Natural Resources Code, are amended to read as follows:
 66-9          (a)  As evidence that required insurance has been secured and
66-10    is in force, certificates of insurance which are approved by the
66-11    commission [division] shall be filed with the commission [division]
66-12    before licensing, license renewal, and during the entire period
66-13    that the license is in effect.  Any document filed with the
66-14    commission [division] in a timely manner which is not completed in
66-15    accordance with the instructions indicated on the insurance
66-16    certificate forms supplied by the commission [division], but which
66-17    complies with the substantive requirements of this section and with
66-18    the rules adopted under this section may be considered by the
66-19    commission [division] to be evidence that required insurance has
66-20    been secured and is in force for a temporary period not to exceed
66-21    45 days.  During this temporary period, a licensee shall file with
66-22    the commission [division] an amended certificate of insurance which
66-23    complies with all procedural and substantive requirements of this
66-24    section and the rules adopted hereunder.
66-25          (c)  Cancellation of a certificate of insurance becomes
66-26    effective on the occurrence of any of the following events and not
 67-1    before:
 67-2                (1)  commission [division] receipt of written notice
 67-3    stating the insurer's intent to cancel a policy of insurance and
 67-4    the passage of time equivalent to the notice period required by law
 67-5    to be given the insured before the insurance cancellation;
 67-6                (2)  receipt by the commission [division] of an
 67-7    acceptable replacement insurance certificate;
 67-8                (3)  voluntary surrender of a license and the rights
 67-9    and privileges conferred by the license;
67-10                (4)  commission [division] receipt of a statement made
67-11    by a licensee stating that the licensee is not actively engaging in
67-12    any operations which require a particular type of insurance and
67-13    will not engage in those operations unless and until all
67-14    certificates of required insurance applicable to those operations
67-15    are filed with the commission [division]; or
67-16                (5)  written order of commission.
67-17          SECTION 45.  Subsections (a) through (d), Section 113.099,
67-18    Natural Resources Code, are amended to read as follows:
67-19          (a)  A [category "C," "E," "H," or "J"] licensee or an
67-20    applicant for a license under Section 113.082(a)(3), (5), (8), or
67-21    (10) that does not operate or contemplate the operation of a motor
67-22    vehicle equipped with an LP-gas cargo container and does not
67-23    transport or contemplate the transportation of LP-gas by vehicle in
67-24    any manner, may make and file with the commission [division] a
67-25    statement to that effect in lieu of filing a certificate of motor
67-26    vehicle bodily injury and property damage insurance.
 68-1          (b)  A licensee or an applicant for a license that does not
 68-2    engage in or contemplate engaging in any operations which would be
 68-3    covered by general liability insurance for a period of time may
 68-4    make and file with the commission [division] a statement to that
 68-5    effect in lieu of filing a certificate of general liability
 68-6    insurance.
 68-7          (c)  A licensee or an applicant for a license that does not
 68-8    employ or contemplate the hiring of an employee or employees to be
 68-9    engaged in LPG-related activities in this state may make and file
68-10    with the commission [division] a statement to that effect in lieu
68-11    of filing evidence of coverage of workers' compensation or other
68-12    alternative form of coverage as provided in this subchapter.
68-13          (d)  A [category "A," "B," "C," "E," or "O"] licensee or an
68-14    applicant for a license under Section 113.082(a)(1), (2), (3), (5),
68-15    or (15) that does not engage in or contemplate engaging in any
68-16    LP-gas operations which would be covered by completed operations or
68-17    products liability insurance, or both, for a period of time may
68-18    make and file with the commission [division] a statement to that
68-19    effect in lieu of filing a certificate of insurance.
68-20          SECTION 46.  The heading to Subchapter F, Chapter 113,
68-21    Natural Resources Code, is amended to read as follows:
68-22            SUBCHAPTER F.  DISCIPLINARY ACTION [SUSPENSION AND
68-23                 REVOCATION OF LICENSES AND REGISTRATIONS]
68-24          SECTION 47.  Subsection (e), Section 113.161, Natural
68-25    Resources Code, is amended to read as follows:
68-26          (e)  If the commission [or division] determines that the
 69-1    probable violation or noncompliance constitutes an immediate danger
 69-2    to the public health, safety, and welfare, it shall require the
 69-3    immediate cessation of the probable violation or noncompliance and
 69-4    proceed with a hearing as provided in Section 113.162 [of this
 69-5    code].
 69-6          SECTION 48.  Section 113.163, Natural Resources Code, is
 69-7    amended to read as follows:
 69-8          Sec. 113.163.  FINDINGS AND JUDGMENT.  (a)  The [If the]
 69-9    commission shall revoke, suspend, or refuse to renew a license or
69-10    registration or shall reprimand a licensee or registrant if the
69-11    commission finds that the licensee or registrant has violated or
69-12    failed to comply with or is violating or failing to comply with
69-13    this chapter or a rule or standard promulgated and adopted under
69-14    this chapter[, or both, the commission may suspend the license or
69-15    registration for a definite period not to exceed 90 days or may
69-16    revoke the license or registration.  If the commission determines
69-17    that no violation has occurred or is occurring, its order shall so
69-18    state.  Whenever a license or registration is revoked by order of
69-19    the commission, a new license or registration shall not be issued
69-20    for at least 90 days from the effective date of the order.  Such
69-21    time period shall be stated in the order].
69-22          (b)  The commission may place on probation a person whose
69-23    license or registration is [has been] suspended.  If a license or
69-24    registration suspension is probated, the commission may require the
69-25    person:
69-26                (1)  to report regularly to the commission on matters
 70-1    that are the basis of the probation;
 70-2                (2)  to limit practice to the areas prescribed by the
 70-3    commission; or
 70-4                (3)  to continue or review professional education until
 70-5    the person attains a degree of skill satisfactory to the commission
 70-6    in those areas that are the basis of the [under Subsection (a) of
 70-7    this section for a definite period not to exceed one year, but if
 70-8    the commission does place the licensee or registrant on probation
 70-9    and does allow him to continue to operate, the fact that the
70-10    license or registration has been suspended and the licensee or
70-11    registrant has been put on probation shall appear in the records of
70-12    the commission relating to the suspension and] probation.
70-13          SECTION 49.  Subsection (b), Section 113.233, Natural
70-14    Resources Code, is amended to read as follows:
70-15          (b)  Any authorized representative of the commission [LP-Gas
70-16    Division] may enter any buildings or premises where an accident has
70-17    occurred in which LP-gas was a probable cause for purposes of
70-18    investigating the cause, origin, and circumstances of such
70-19    accident.  The commission [LP-Gas Division] may request that any
70-20    state or local authority having jurisdiction take appropriate
70-21    action, to the extent permitted by law, as may be necessary for
70-22    preservation of property and premises.
70-23          SECTION 50.  Subsection (b), Section 113.243, Natural
70-24    Resources Code, as amended by Section 2, Chapter 496, Acts of the
70-25    75th Legislature, Regular Session, 1997, is amended to read as
70-26    follows:
 71-1          (b)  The fund consists of money from:
 71-2                (1)  fees charged under this subchapter;
 71-3                (2)  the penalties for the late payment of the fee
 71-4    charged under this subchapter;
 71-5                (3)  gifts, grants, or other assistance received by the
 71-6    commission from any source for the purposes of this subchapter;
 71-7                (4)  interest earned on amounts in the fund;
 71-8                (5)  amounts collected by the commission under an
 71-9    agreement with another state in accordance with Section 113.246(e);
71-10    [and]
71-11                (6)  assessments, rebates on assessments, and other
71-12    money collected by the commission under the Propane Education and
71-13    Research Act of 1996 (15 U.S.C. Section 6401 et seq.) or other
71-14    applicable federal law; and
71-15                (7)  fees, royalties, or other things of value received
71-16    from the items described by Subsections (f)(1)(A)-(D).
71-17          SECTION 51.  Section 113.243, Natural Resources Code, is
71-18    amended by amending Subsections (c) and (d) and adding Subsections
71-19    (f) and (g) to read as follows:
71-20          (c)  The fund may be used only by the commission to pay for
71-21    activities relating to the specific fuel from which the fee,
71-22    royalty, or other thing of value was derived or the specific fuel,
71-23    if any, for which the gift, grant, or other assistance is given,
71-24    including direct and indirect costs relating to:
71-25                (1)  researching all possible uses of LPG and other
71-26    environmentally beneficial alternative fuels to enhance air
 72-1    quality;
 72-2                (2)  researching, developing, and implementing
 72-3    marketing, advertising, and informational programs relating to
 72-4    alternative fuels to make alternative fuels more understandable and
 72-5    readily available to consumers;
 72-6                (3)  developing and implementing conservation and
 72-7    distribution plans to minimize the frequency and severity of
 72-8    disruptions in the supply of alternative fuels;
 72-9                (4)  developing a public information plan that will
72-10    provide advisory services relating to alternative fuels to
72-11    consumers;
72-12                (5)  developing voluntary participation plans to
72-13    promote the use of alternative fuels by federal, state, and local
72-14    agencies;
72-15                (6)  implementing consumer incentive or rebate programs
72-16    developed pursuant to Section 113.2435 of this subchapter;
72-17                (7)  other functions the commission determines are
72-18    necessary to add a program established by the commission for the
72-19    purpose of promoting the use of LPG or other environmentally
72-20    beneficial alternative fuels; and
72-21                (8)  the administrative costs incurred by the
72-22    commission under this subchapter.
72-23          (d)  If a specific fee, royalty, gift, grant, other thing of
72-24    value, or other assistance is designated for or collected from
72-25    discrete components of the alternative fuels industry, the fee,
72-26    royalty, gift, grant, other thing of value, or other assistance
 73-1    shall be deposited in a separate account in the fund.
 73-2          (f)  The commission may:
 73-3                (1)  apply for, register, secure, hold, and protect
 73-4    under the laws of a state, the United States, or a foreign country
 73-5    a patent, copyright, trademark, or other evidence of protection or
 73-6    exclusivity issued for an idea, publication, or other original
 73-7    innovation fixed in a tangible medium, including:
 73-8                      (A)  a logo;
 73-9                      (B)  a service mark;
73-10                      (C)  a study;
73-11                      (D)  an engineering, architectural, or graphic
73-12    design;
73-13                      (E)  a manual;
73-14                      (F)  automated systems software;
73-15                      (G)  an audiovisual work; or
73-16                      (H)  a sound recording;
73-17                (2)  enter into a license agreement with a third party
73-18    in return for a fee, royalty, or other thing of value; and
73-19                (3)  waive or reduce the amount of a fee, royalty, or
73-20    other thing of value to be assessed if the commission determines
73-21    that the waiver will:
73-22                      (A)  further the goals and missions of the
73-23    commission's division responsible for alternative fuels research
73-24    and education; and
73-25                      (B)  result in a net benefit to the state.
73-26          (g)  Money received under Subsection (f) shall be deposited
 74-1    in a separate account in the fund as provided by Subsection (d),
 74-2    except that any money received by the commission from the items
 74-3    described by Subsections (f)(1)(E)-(H) shall be deposited in the
 74-4    general revenue fund.
 74-5          SECTION 52.  Subchapter J, Chapter 113, Natural Resources
 74-6    Code, as added by Chapter 80, Acts of the 73rd Legislature, Regular
 74-7    Session, 1993, is redesignated as Subchapter K, and the heading to
 74-8    that subchapter is amended to read as follows:
 74-9              SUBCHAPTER K [J].  LIABILITY OF LICENSE HOLDER
74-10          SECTION 53.  Chapter 113, Natural Resources Code, is amended
74-11    by adding Subchapter L to read as follows:
74-12                 SUBCHAPTER L.  TESTING OF LP-GAS SYSTEMS
74-13                           IN SCHOOL FACILITIES
74-14          Sec. 113.351.  DEFINITIONS.  In this subchapter:
74-15                (1)  "School district" means:
74-16                      (A)  an entity created under the laws of this
74-17    state and accredited by the Texas Education Agency under Subchapter
74-18    D, Chapter 39, Education Code;
74-19                      (B)  a private elementary or secondary school,
74-20    other than a school in a residence; or
74-21                      (C)  a state or regional school for the blind and
74-22    visually impaired or the deaf under Chapter 30, Education Code.
74-23                (2)  "Supplier" means an individual or company that
74-24    sells and delivers liquefied petroleum gas to a school district
74-25    facility.  If more than one individual or company sells and
74-26    delivers LP-gas to a facility of a school district, each individual
 75-1    or company is a supplier for purposes of this subchapter.
 75-2          Sec. 113.352.  DUTY TO TEST FOR LEAKAGE.  (a)  Each school
 75-3    district shall perform pressure tests for leakage on the LP-gas
 75-4    piping system in each school district facility at least biennially.
 75-5    The tests must be performed before the beginning of the school
 75-6    year.
 75-7          (b)  The school district may perform the pressure tests on a
 75-8    two-year cycle under which the tests are performed for the LP-gas
 75-9    piping systems of approximately one-half of the facilities each
75-10    year.
75-11          (c)  If a school district operates one or more school
75-12    district facilities on a year-round calendar, the pressure test in
75-13    each of those facilities must be conducted and reported not later
75-14    than July 1 of the year in which the test is performed.
75-15          (d)  A test performed under a municipal code satisfies the
75-16    pressure testing requirements prescribed by this section.
75-17          Sec. 113.353.  REQUIREMENTS OF TEST.  (a)  The school
75-18    district shall perform the pressure test to determine whether the
75-19    LP-gas piping system holds at least the amount of pressure
75-20    specified by the National Fire Protection Association 54, National
75-21    Fuel Gas Code.
75-22          (b)  The pressure test must be conducted in accordance with
75-23    National Fire Protection Association 54.
75-24          (c)  At the request of a school district, the commission
75-25    shall assist the district in providing for the certification of an
75-26    employee of the school district or school, as applicable, to
 76-1    conduct the test and in developing a procedure for conducting the
 76-2    test.
 76-3          Sec. 113.354.  NOTICE OF TEST.  (a)  A school district shall
 76-4    provide written notice to the commission specifying the date and
 76-5    the result of each pressure test or other inspection of the LP-gas
 76-6    piping system.
 76-7          (b)  Before the introduction of any LP-gas into the LP-gas
 76-8    piping system, the school district shall provide verification to
 76-9    the district's supplier that the piping has been tested in
76-10    accordance with this subchapter.
76-11          (c)  The commission shall maintain a copy of the notice
76-12    provided under Subsection (a) until at least the first anniversary
76-13    of the date the commission received the notice.
76-14          Sec. 113.355.  TERMINATION OF SERVICE.  A supplier shall
76-15    terminate service to a school district facility if:
76-16                (1)  the supplier receives official notification from
76-17    the firm or individual conducting the test of a hazardous leakage
76-18    in the facility LP-gas piping system; or
76-19                (2)  a test at the facility is not performed as
76-20    required by this subchapter.
76-21          Sec. 113.356.  REPORT TO BOARD OF TRUSTEES.  An identified
76-22    LP-gas leakage in a school district facility shall be reported to
76-23    the board of trustees of the district in which the facility is
76-24    located.
76-25          Sec. 113.357.  ENFORCEMENT.  The  commission shall enforce
76-26    this subchapter.
 77-1          SECTION 54.  Subchapter B, Chapter 116, Natural Resources
 77-2    Code, is amended by adding Section 116.016 to read as follows:
 77-3          Sec. 116.016.  LIMITATIONS ON RULEMAKING AUTHORITY.  (a)  The
 77-4    commission may not adopt rules restricting advertising or
 77-5    competitive bidding by a licensee or registrant except to prohibit
 77-6    false, misleading, or deceptive practices.
 77-7          (b)  In its rules to prohibit false, misleading, or deceptive
 77-8    practices, the commission may not include a rule that:
 77-9                (1)  restricts the use of any medium for advertising;
77-10                (2)  restricts the use of a licensee or registrant's
77-11    personal appearance or voice in an advertisement;
77-12                (3)  relates to the size or duration of an
77-13    advertisement by the licensee or registrant; or
77-14                (4)  restricts the licensee or registrant's
77-15    advertisement under a trade name.
77-16          SECTION 55.  Subsection (b), Section 116.032, Natural
77-17    Resources Code, is amended to read as follows:
77-18          (b)  The commission by rule may establish reasonable fees for
77-19    each category of license.  [A license fee may not exceed $1,000.]
77-20          SECTION 56.  Section 116.033, Natural Resources Code, is
77-21    amended to read as follows:
77-22          Sec. 116.033.  APPLICATION AND RENEWAL PROCEDURES.  (a)  The
77-23    commission shall adopt rules establishing procedures for submitting
77-24    and processing applications for issuance and renewal of licenses
77-25    and for registration.
77-26          (b)  A person who is otherwise eligible to renew a license or
 78-1    registration may renew an unexpired license or registration by
 78-2    paying the required renewal fee to the commission before the
 78-3    expiration date of the license or registration.  A person whose
 78-4    license or registration has expired may not engage in activities
 78-5    that require a license or registration until the license or
 78-6    registration has been renewed.
 78-7          (c)  A person whose license or registration has been expired
 78-8    for 90 days or less may renew the license or registration by paying
 78-9    to the commission a renewal fee that is equal to 1-1/2 times the
78-10    normally required renewal fee.
78-11          (d)  A person whose license or registration has been expired
78-12    for more than 90 days but less than one year may renew the license
78-13    or registration by paying to the commission a renewal fee that is
78-14    equal to two times the normally required renewal fee.
78-15          (e)  A person whose license or registration has been expired
78-16    for one year or more may not renew the license or registration.
78-17    The person may obtain a new license or registration by complying
78-18    with the requirements and procedures, including the examination
78-19    requirements, for obtaining an original license or registration.
78-20          (f)  A person who was licensed or registered in this state,
78-21    moved to another state, and is currently licensed or registered and
78-22    has been in practice in the other state for the two years preceding
78-23    the date of application may obtain a new license or registration
78-24    without reexamination.  The person must pay to the commission a fee
78-25    that is equal to two times the normally required renewal fee for
78-26    the license or registration.
 79-1          (g)  Not later than the 30th day before the date a person's
 79-2    license or registration is scheduled to expire, the commission
 79-3    shall send written notice of the impending expiration to the person
 79-4    at the person's last known address according to the records of the
 79-5    commission.
 79-6          SECTION 57.  Section 116.034, Natural Resources Code, is
 79-7    amended by adding Subsections (d) through (h) to read as follows:
 79-8          (d)  Not later than the 30th day after the date a person
 79-9    takes a licensing or registration examination under this chapter,
79-10    the commission shall notify the person of the results of the
79-11    examination.
79-12          (e)  If the examination is graded or reviewed by a testing
79-13    service:
79-14                (1)  the commission shall notify the person of the
79-15    results of the examination not later than the 14th day after the
79-16    date the commission receives the results from the testing service;
79-17    and
79-18                (2)  if notice of the examination results will be
79-19    delayed for longer than 90 days after the examination date, the
79-20    commission shall notify the person of the reason for the delay
79-21    before the 90th day.
79-22          (f)  The commission may require a testing service to notify a
79-23    person of the results of the person's examination.
79-24          (g)  If requested in writing by a person who fails a
79-25    licensing or registration examination administered under this
79-26    chapter, the commission shall furnish the person with an analysis
 80-1    of the person's performance on the examination.
 80-2          (h)  The commission shall recognize, prepare, or administer
 80-3    continuing education programs for its licensees and registrants.  A
 80-4    licensee or registrant must participate in the programs to the
 80-5    extent required by the commission to keep the person's license.
 80-6          SECTION 58.  Subchapter C, Chapter 116, Natural Resources
 80-7    Code, is amended by adding Sections 116.0345 and 116.0346 to read
 80-8    as follows:
 80-9          Sec. 116.0345.  LICENSE OR REGISTRATION BY ENDORSEMENT.  The
80-10    commission may waive any prerequisite to obtaining a license or
80-11    registration for an applicant after reviewing the applicant's
80-12    credentials and determining that the applicant holds a license or
80-13    registration issued by another jurisdiction that has licensing
80-14    requirements substantially equivalent to those of this state.
80-15          Sec. 116.0346.  PROVISIONAL LICENSE OR REGISTRATION.
80-16    (a)  The commission may issue a provisional license or registration
80-17    to an applicant currently licensed or registered in another
80-18    jurisdiction who seeks a license or registration in this state and
80-19    who:
80-20                (1)  has been licensed or registered in good standing
80-21    for at least two years in another jurisdiction, including a foreign
80-22    country, that has licensing or registration requirements
80-23    substantially equivalent to the requirements of this chapter;
80-24                (2)  has passed a national or other examination
80-25    recognized by the commission relating to the activities regulated
80-26    under this chapter; and
 81-1                (3)  is sponsored by a person licensed or registered by
 81-2    the commission under this chapter with whom the provisional license
 81-3    or registration holder will practice during the time the person
 81-4    holds a provisional license or registration.
 81-5          (b)  The commission may waive the requirement of Subsection
 81-6    (a)(3) for an applicant if the commission determines that
 81-7    compliance with that subsection would be a hardship to the
 81-8    applicant.
 81-9          (c)  A provisional license or registration is valid until the
81-10    date the commission approves or denies the provisional license or
81-11    registration holder's application for a license or registration.
81-12    The commission shall issue a license or registration under this
81-13    chapter to the provisional license or registration holder if:
81-14                (1)  the provisional license or registration holder is
81-15    eligible to be licensed or registered under Section 116.0345; or
81-16                (2)  the provisional license or registration holder:
81-17                      (A)  passes the part of the examination under
81-18    Section 116.034 that relates to the applicant's knowledge and
81-19    understanding of the laws and rules relating to the activities
81-20    regulated under this chapter in this state;
81-21                      (B)  meets the academic and experience
81-22    requirements for a license or registration under this chapter; and
81-23                      (C)  satisfies any other licensing or
81-24    registration requirements under this chapter.
81-25          (d)  The commission must approve or deny a provisional
81-26    license or registration holder's application for a license or
 82-1    registration not later than the 180th day after the date the
 82-2    provisional license or registration is issued.  The commission may
 82-3    extend the 180-day period if the results of an examination have not
 82-4    been received by the commission before the end of that period.
 82-5          (e)  The commission may establish a fee for provisional
 82-6    licenses or registrations in an amount reasonable and necessary to
 82-7    cover the cost of issuing the license or registration.
 82-8          SECTION 59.  The heading to Section 116.037, Natural
 82-9    Resources Code, is amended to read as follows:
82-10          Sec. 116.037.  DISCIPLINARY ACTION [SUSPENSION AND REVOCATION
82-11    OF LICENSE].
82-12          SECTION 60.  Section 116.037, Natural Resources Code, is
82-13    amended by amending Subsections (f) and (g) and adding Subsection
82-14    (h) to read as follows:
82-15          (f)  The [If the] commission shall revoke, suspend, or refuse
82-16    to renew a license or registration or shall reprimand the licensee
82-17    or registrant if the commission finds that the licensee or
82-18    registrant has violated or failed to comply with or is violating or
82-19    failing to comply with this chapter or a rule adopted under this
82-20    chapter[, the commission may suspend the license or registration
82-21    for a definite period not to exceed 90 days or may revoke the
82-22    license].
82-23          (g)  The commission may place on probation a person whose
82-24    license or registration is suspended.  If a license or registration
82-25    suspension is probated, the commission may require the person:
82-26                (1)  to report regularly to the commission on matters
 83-1    that are the basis of the probation;
 83-2                (2)  to limit practice to the areas prescribed by the
 83-3    commission; or
 83-4                (3)  to continue or review professional education until
 83-5    the person attains a degree of skill satisfactory to the commission
 83-6    in those areas that are the basis of the probation.
 83-7          (h)  Any party to a proceeding before the commission is
 83-8    entitled to judicial review under the substantial evidence rule.
 83-9          SECTION 61.  Section 117.012, Natural Resources Code, is
83-10    amended by adding Subsections (h) through (k) to read as follows:
83-11          (h)  The commission shall require operators or their
83-12    designated representatives to communicate and conduct liaison
83-13    activities with fire, police, and other appropriate public
83-14    emergency response officials.  The liaison activities must be
83-15    conducted by meetings in person except as provided by this section.
83-16    An operator or the operator's representative may conduct required
83-17    community liaison activities as provided by Subsection (i) only if
83-18    the operator or the operator's representative has made the
83-19    following efforts to conduct a community liaison meeting in person
83-20    with the officials:
83-21                (1)  mailing a written request for a meeting in person
83-22    to the appropriate officials by certified mail, return receipt
83-23    requested;
83-24                (2)  sending a request for a meeting in person to the
83-25    appropriate officials by facsimile transmission; and
83-26                (3)  making one or more telephone calls or e-mail
 84-1    message transmissions to the appropriate officials to request a
 84-2    meeting in person.
 84-3          (i)  If the operator or operator's representative cannot
 84-4    arrange a meeting in person after complying with Subsection (h),
 84-5    the operator or the operator's representative shall make the
 84-6    following efforts to conduct community liaison activities by means
 84-7    of a telephone conference call with the officials:
 84-8                (1)  mailing a written request for a telephone
 84-9    conference to the appropriate officials by certified mail, return
84-10    receipt requested;
84-11                (2)  sending a request for a telephone conference to
84-12    the appropriate officials by facsimile transmission; and
84-13                (3)  making one or more telephone calls or e-mail
84-14    message transmissions to the appropriate officials to request a
84-15    telephone conference.
84-16          (j)  If the operator or the operator's representative has
84-17    made the efforts required by Subsections (h) and (i) but has not
84-18    successfully arranged a meeting in person or a telephone
84-19    conference, the community liaison information required to be
84-20    conveyed may be delivered by mailing the information by certified
84-21    mail, return receipt requested.
84-22          (k)  The commission by rule shall require the owner or
84-23    operator of each interstate or intrastate hazardous liquid or
84-24    carbon dioxide pipeline facility any part of which is located
84-25    within 1,000 feet of a public school to:
84-26                (1)  develop an emergency response plan in consultation
 85-1    with the fire department in whose jurisdiction the school is
 85-2    located or another local emergency response entity; and
 85-3                (2)  present the plan:
 85-4                      (A)  at the first annual budget meeting of the
 85-5    board of trustees of the school district in which the school is
 85-6    located after the plan is developed; and
 85-7                      (B)  at subsequent annual budget meetings of the
 85-8    board of trustees of the school district on the request of the
 85-9    board.
85-10          SECTION 62.  Subtitle D, Title 3, Natural Resources Code, is
85-11    amended by adding Chapter 118 to read as follows:
85-12               CHAPTER 118.  PIPELINE ASSESSMENT AND TESTING
85-13          Sec. 118.001.  AUTHORITY TO REQUIRE PLAN FOR PIPELINE
85-14    ASSESSMENT OR TESTING.  (a)  The Railroad Commission of Texas by
85-15    rule may require an operator to file for commission approval a plan
85-16    for assessment or testing of a pipeline if the commission finds
85-17    that:
85-18                (1)  there is reason to believe that the pipeline may
85-19    present a hazard to public health or safety;
85-20                (2)  the commission lacks adequate information to
85-21    assess the risk to public health or safety presented by the
85-22    pipeline; or
85-23                (3)  a plan is necessary for the commission to initiate
85-24    or complete a pipeline safety investigation.
85-25          (b)  The Railroad Commission of Texas may take enforcement
85-26    action against a person who fails to:
 86-1                (1)  submit a required plan; or
 86-2                (2)  participate in a pipeline safety investigation.
 86-3          Sec. 118.002.  PIPELINES FOR WHICH PLAN MAY BE REQUIRED.  The
 86-4    rules adopted under this chapter may apply to interstate pipelines,
 86-5    intrastate pipelines, portions of pipeline systems the regulation
 86-6    of which the federal government has temporarily delegated to the
 86-7    Railroad Commission of Texas, or gathering lines, and to pipelines
 86-8    for the transportation of any substance or material under the
 86-9    jurisdiction of the commission, as specified by the commission.
86-10          Sec. 118.003.  CONTENTS OF PLAN.  The rules adopted under
86-11    this chapter may require that a plan include:
86-12                (1)  an identification of risk factors associated with
86-13    a pipeline system, including population density;
86-14                (2)  information about previous inspections and
86-15    maintenance;
86-16                (3)  information about pressure tests;
86-17                (4)  information about leaks;
86-18                (5)  information about operating characteristics;
86-19                (6)  information about corrosion protection methods;
86-20    and
86-21                (7)  other information that may assist the Railroad
86-22    Commission of Texas in assessing the risk to public health or
86-23    safety presented by the pipeline.
86-24          Sec. 118.004.  APPROVAL OF PLAN.  The Railroad Commission of
86-25    Texas may approve a plan that complies with rules adopted under
86-26    this chapter.
 87-1          Sec. 118.005.  CONSEQUENCES OF PLAN APPROVAL.  The approval
 87-2    of a plan by the Railroad Commission of Texas does not constitute a
 87-3    certification or representation that the pipeline is in compliance
 87-4    with or exempt from applicable safety standards.
 87-5          SECTION 63.  Section 102.001, Utilities Code, is amended to
 87-6    read as follows:
 87-7          Sec. 102.001.  RAILROAD COMMISSION JURISDICTION.  (a)  The
 87-8    railroad commission has exclusive original jurisdiction over the
 87-9    rates and services of a gas utility:
87-10                (1)  that distributes [distributing] natural gas or
87-11    synthetic natural gas in:
87-12                      (A)  areas outside a municipality; and
87-13                      (B)  areas inside a municipality that surrenders
87-14    its jurisdiction to the railroad commission under Section 103.003;
87-15    and
87-16                (2)  [.  The railroad commission also has exclusive
87-17    original jurisdiction over the rates and services of a gas utility]
87-18    that transmits, transports, delivers, or sells natural gas or
87-19    synthetic natural gas to a gas utility that distributes the gas to
87-20    the public.
87-21          (b)  The railroad commission has exclusive appellate
87-22    jurisdiction to review an order or ordinance of a municipality
87-23    exercising exclusive original jurisdiction as provided by this
87-24    subtitle.
87-25          SECTION 64.  Subchapter A, Chapter 102, Utilities Code, is
87-26    amended by adding Section 102.006 to read as follows:
 88-1          Sec. 102.006.  POWERS AND DUTIES OF STATE OFFICE OF
 88-2    ADMINISTRATIVE HEARINGS.  (a)  The utility division of the State
 88-3    Office of Administrative Hearings shall conduct each hearing in a
 88-4    contested case that is not conducted by one or more members of the
 88-5    railroad commission.  A hearing must be conducted in accordance
 88-6    with the rules and procedures adopted by the railroad commission.
 88-7          (b)  The railroad commission may delegate to the utility
 88-8    division of the State Office of Administrative Hearings the
 88-9    authority to make a final decision and to issue findings of fact,
88-10    conclusions of law, and other necessary orders in a proceeding in
88-11    which there is not a contested issue of fact or law.
88-12          (c)  The railroad commission by rule shall define the
88-13    procedures by which it delegates final decision-making authority
88-14    under Subsection (b).
88-15          (d)  For purposes of judicial review, an administrative law
88-16    judge's final decision under Subsection (b) has the same effect as
88-17    a final decision of the railroad commission unless a member of the
88-18    commission requests formal review of the decision.
88-19          SECTION 65.  Section 103.001, Utilities Code, is amended to
88-20    read as follows:
88-21          Sec. 103.001.  MUNICIPAL JURISDICTION.  To provide fair,
88-22    just, and reasonable rates and adequate and efficient services, the
88-23    governing body of a municipality has exclusive original
88-24    jurisdiction over the rates, operations, and services of a gas
88-25    utility within the municipality, subject to the limitations imposed
88-26    by this subtitle, unless the municipality surrenders its
 89-1    jurisdiction to the railroad commission under Section 103.003.
 89-2          SECTION 66.  Subchapter A, Chapter 103, Utilities Code, is
 89-3    amended by adding Section 103.003 to read as follows:
 89-4          Sec. 103.003.  SURRENDER OF MUNICIPAL JURISDICTION TO
 89-5    RAILROAD COMMISSION; REINSTATEMENT OF JURISDICTION.  (a)  A
 89-6    municipality may elect to have the railroad commission exercise
 89-7    exclusive original jurisdiction over gas utility rates, operations,
 89-8    and services in the municipality by ordinance or by submitting the
 89-9    question of the surrender of its jurisdiction to the voters at a
89-10    municipal election.
89-11          (b)  The governing body of a municipality shall submit at a
89-12    municipal election the question of surrendering its jurisdiction to
89-13    the railroad commission if the governing body receives a petition
89-14    signed by a number of qualified voters of the municipality equal to
89-15    at least the lesser of 20,000 or 10 percent of the number of voters
89-16    voting in the last preceding general election in the municipality.
89-17          (c)  A municipality may not elect to surrender its
89-18    jurisdiction while a case involving the municipality is pending.
89-19          (d)  A municipality that surrenders its jurisdiction to the
89-20    railroad commission may reinstate its jurisdiction.  The provisions
89-21    of this section governing the surrender of jurisdiction apply to
89-22    the reinstatement of jurisdiction.
89-23          SECTION 67.  Section 104.107, Utilities Code, is amended by
89-24    amending Subsection (b) and adding Subsection (c) to read as
89-25    follows:
89-26          (b)  The 150-day period prescribed by Subsection (a)(2) shall
 90-1    be extended for two days for each day the actual hearing on the
 90-2    merits of the case exceeds 15 days.
 90-3          (c)  If the regulatory authority does not make a final
 90-4    determination concerning a schedule of rates before expiration of
 90-5    the applicable suspension period, the regulatory authority is
 90-6    considered to have approved the schedule.  This approval is subject
 90-7    to the authority of the regulatory authority thereafter to continue
 90-8    a hearing in progress.
 90-9          SECTION 68.  Subchapter F, Chapter 104, Utilities Code, is
90-10    amended by adding Section 104.2551 to read as follows:
90-11          Sec. 104.2551.  ELECTRONIC BILLING.  A gas utility or
90-12    municipally owned utility may transmit the utility's bill for
90-13    services through the Internet or by other electronic means instead
90-14    of through the United States mail on the request of a customer of
90-15    the gas utility or municipally owned utility.
90-16          SECTION 69.  Section 121.103, Utilities Code, is amended by
90-17    amending Subsection (a) and adding Subsection (d) to read as
90-18    follows:
90-19          (a)  A gas utility that provides gas to a customer does not
90-20    have an obligation to serve the customer or to maintain the gas
90-21    supply or physical capacity to serve the customer if the customer:
90-22                (1)  is a transportation, industrial, commercial, or
90-23    other similar large-volume contract customer;
90-24                (2)  is an end-use customer of the gas utility;
90-25                (3)  reduces or ceases the purchase of natural gas or
90-26    natural gas service from the gas utility; and
 91-1                (4)  purchases natural gas or natural gas service from
 91-2    another supplier or purchases an alternate form of energy.
 91-3          (d)  Notwithstanding Subsection (a), a gas utility that has
 91-4    provided gas to a commercial customer is obligated to serve that
 91-5    customer if the gas utility has a sufficient gas supply and
 91-6    physical capacity to do so without reducing service to its other
 91-7    customers.
 91-8          SECTION 70.  Section 121.2015, Utilities Code, is amended to
 91-9    read as follows:
91-10          Sec. 121.2015.  REQUIRED SAFETY RULES.  (a)  The railroad
91-11    commission shall adopt rules regarding:
91-12                (1)  public education and awareness relating to gas
91-13    pipeline facilities; and
91-14                (2)  community liaison for responding to an emergency
91-15    relating to a gas pipeline facility.
91-16          (b)  The railroad commission shall require operators or their
91-17    designated representatives to communicate and conduct liaison
91-18    activities with fire, police, and other appropriate public
91-19    emergency response officials.  The liaison activities must be
91-20    conducted by meetings in person except as provided by this section.
91-21    An operator or the operator's representative may conduct required
91-22    community liaison activities as provided by Subsection (c) only if
91-23    the operator or the operator's representative has made an effort to
91-24    conduct a community liaison meeting in person with the officials by
91-25    one of the following methods:
91-26                (1)  mailing a written request for a meeting in person
 92-1    to the appropriate officials by certified mail, return receipt
 92-2    requested;
 92-3                (2)  sending a request for a meeting in person to the
 92-4    appropriate officials by facsimile transmission; or
 92-5                (3)  making one or more telephone calls or e-mail
 92-6    message transmissions to the appropriate officials to request a
 92-7    meeting in person.
 92-8          (c)  If the operator or operator's representative cannot
 92-9    arrange a meeting in person after complying with Subsection (b),
92-10    the operator or the operator's representative shall make an effort
92-11    to conduct community liaison activities by means of a telephone
92-12    conference call with the officials by one of the following methods:
92-13                (1)  mailing a written request for a telephone
92-14    conference to the appropriate officials by certified mail, return
92-15    receipt requested;
92-16                (2)  sending a request for a telephone conference to
92-17    the appropriate officials by facsimile transmission; or
92-18                (3)  making one or more telephone calls or e-mail
92-19    message transmissions to the appropriate officials to request a
92-20    telephone conference.
92-21          (d)  If the operator or the operator's representative has
92-22    made the efforts required by Subsections (b) and (c) but has not
92-23    successfully arranged a meeting in person or a telephone
92-24    conference, the community liaison information required to be
92-25    conveyed may be delivered by mailing the information by certified
92-26    mail, return receipt requested.
 93-1          SECTION 71.  Section 121.206, Utilities Code, is amended by
 93-2    amending Subsection (c) and adding Subsection (d) to read as
 93-3    follows:
 93-4          (c)  In determining the amount of the penalty, the railroad
 93-5    commission shall consider the guidelines adopted under Subsection
 93-6    (d).
 93-7          (d)  The railroad commission by rule shall adopt guidelines
 93-8    to be used in determining the amount of a penalty under this
 93-9    subchapter.  The guidelines shall include a penalty calculation
93-10    worksheet that specifies the typical penalty for certain
93-11    violations, circumstances justifying enhancement of a penalty and
93-12    the amount of the enhancement, and circumstances justifying a
93-13    reduction in a penalty and the amount of the reduction.  The
93-14    guidelines shall take into account:
93-15                (1)  the person's history of previous violations of
93-16    Section 121.201 or a safety standard or rule relating to the
93-17    transportation of gas and gas pipeline facilities adopted under
93-18    that section, including the number of previous violations;
93-19                (2)  the seriousness of the violation and of any
93-20    pollution resulting from the violation; [and]
93-21                (3)  any hazard to the health or safety of the public;
93-22                (4)  the degree of culpability;
93-23                (5)  the demonstrated good faith of the person charged;
93-24    and
93-25                (6)  any other factor the commission considers
93-26    relevant.
 94-1          SECTION 72.  The heading to Subchapter J, Chapter 121,
 94-2    Utilities Code, is amended to read as follows:
 94-3          SUBCHAPTER J.  TESTING OF NATURAL GAS PIPING SYSTEMS IN
 94-4                       SCHOOL [DISTRICT] FACILITIES
 94-5          SECTION 73.  Subchapter J, Chapter 121, Utilities Code, is
 94-6    amended by adding Section 121.5005 to read as follows:
 94-7          Sec. 121.5005.  APPLICABILITY.  This subchapter applies to a
 94-8    facility of a public elementary or secondary school, including a
 94-9    charter school, or a private elementary or secondary school, but
94-10    does not apply to a home school.
94-11          SECTION 74.  Sections 121.501 through 121.506, Utilities
94-12    Code, are amended to read as follows:
94-13          Sec. 121.501.  DEFINITION.  In this subchapter, "supplier"
94-14    means an individual or company that sells and delivers natural gas
94-15    to a school [district] facility.  If more than one individual or
94-16    company sells and delivers natural gas to a school facility [of a
94-17    school district], each individual or company is a supplier for
94-18    purposes of this subchapter.
94-19          Sec. 121.502.  DUTY TO PRESSURE TEST.  (a)  A person
94-20    responsible for a school facility [Each school district] shall
94-21    perform biennial pressure tests on the natural gas piping system in
94-22    the [each] school [district] facility.  The [school district shall
94-23    perform the] tests must be performed before the beginning of the
94-24    school year.
94-25          (b)  A person responsible for more than one school facility
94-26    [The school district] may perform the tests on a two-year cycle
 95-1    under which the person [district] pressure tests the natural gas
 95-2    piping system in approximately one-half of the facilities each
 95-3    year.
 95-4          (c)  If the person responsible for [a school district
 95-5    operates] one or more school facilities operates the [district]
 95-6    facilities on a year-round calendar, the pressure test in each of
 95-7    those facilities must be conducted and reported not later than July
 95-8    1 of the year in which the pressure test is performed.
 95-9          (d)  A natural gas piping pressure test performed under a
95-10    municipal code satisfies the pressure testing requirements
95-11    prescribed by this section.
95-12          Sec. 121.503.  REQUIREMENTS OF TEST.  (a)  The person
95-13    responsible for a school facility [school district] shall perform
95-14    the pressure test to determine whether the natural gas piping
95-15    downstream of the school facility's [district's] meter holds at
95-16    least normal operating pressure over a specified period determined
95-17    by the railroad commission.
95-18          (b)  During the pressure test, each system supply inlet and
95-19    outlet in the school facility must be closed.
95-20          (c)  At the request of a person responsible for a school
95-21    facility [school district], the railroad commission shall assist
95-22    the person [district] in developing a procedure for conducting the
95-23    test.
95-24          Sec. 121.504.  NOTICE OF TEST.  (a)  A person responsible for
95-25    a school facility [school district] shall provide written notice to
95-26    the school's [district's natural gas] supplier specifying the date
 96-1    and result of each pressure test or other inspection.
 96-2          (b)  The supplier shall maintain a copy of the notice until
 96-3    at least the first anniversary of the date on which the supplier
 96-4    received the notice.
 96-5          Sec. 121.505.  TERMINATION OF SERVICE.  (a)  A supplier shall
 96-6    terminate service to a school [district] facility if:
 96-7                (1)  the supplier receives official notification from
 96-8    the firm or individual conducting the test of a hazardous natural
 96-9    gas leakage in the facility piping system; or
96-10                (2)  [the district fails to perform] a test or other
96-11    inspection at the facility is not performed as required by this
96-12    subchapter.
96-13          (b)  A supplier is not liable for any damages that result
96-14    from a failure to terminate service as required by Subsection
96-15    (a)(2) for a facility other than a school district facility.
96-16          Sec. 121.506.  REPORT OF LEAKAGE [TO BOARD OF TRUSTEES].  An
96-17    identified natural gas leakage in a school district facility must
96-18    be reported to the board of trustees of the district in which the
96-19    facility is located.  An identified natural gas leakage in another
96-20    school facility must be reported to the person responsible for the
96-21    school facility.
96-22          SECTION 75.  Subchapter C, Chapter 2003, Government Code, is
96-23    amended by adding Section 2003.0491 to read as follows:
96-24          Sec. 2003.0491.  RAILROAD COMMISSION HEARINGS.  The utility
96-25    division shall conduct contested case hearings and may make final
96-26    decisions and issue findings of fact, conclusions of law, and other
 97-1    necessary orders in other proceedings on behalf of the Railroad
 97-2    Commission of Texas as provided by Section 102.006, Utilities Code.
 97-3    Section 2003.049 applies to a proceeding under this section except
 97-4    as otherwise provided by Section 102.006, Utilities Code.
 97-5          SECTION 76.  The following laws are repealed:
 97-6                (1)  Chapter 93, Natural Resources Code;
 97-7                (2)  Subdivision (2), Section 113.002, and Sections
 97-8    113.012 and 113.013, Natural Resources Code;
 97-9                (3)  Subsection (b), Section 113.243, Natural Resources
97-10    Code, as amended by Section 1, Chapter 496, Acts of the 75th
97-11    Legislature, Regular Session, 1997; and
97-12                (4)  Section 113.246, Natural Resources Code, as
97-13    amended by Section 6, Chapter 496, Acts of the 75th Legislature,
97-14    Regular Session, 1997.
97-15          SECTION 77.  (a)  Except as otherwise provided by this Act,
97-16    this Act takes effect September 1, 2001.
97-17          (b)  The changes in law made by this Act relating to the
97-18    statutory lien on wells apply only to liens on wells for which the
97-19    Railroad Commission of Texas sends a notice under Section 89.043,
97-20    Natural Resources Code, as amended by this Act, on or after the
97-21    effective date of this Act.  Liens on wells for which notice is
97-22    sent before the effective date of this Act are covered by the law
97-23    as it existed when the notice was sent, and that law is continued
97-24    in effect for that purpose.
97-25          (c)  Section 25 of this Act takes effect immediately if this
97-26    Act receives a vote of two-thirds of all the members elected to
 98-1    each house, as provided by Section 39, Article III, Texas
 98-2    Constitution.  If this Act does not receive the vote necessary for
 98-3    immediate effect, that section does not take effect.
 98-4          (d)  The changes in law made by Sections 91.104, 91.107, and
 98-5    91.109, Natural Resources Code, as amended by this Act, apply only
 98-6    to a person required on or after the effective date of the
 98-7    applicable amendment to file a bond or alternate form of financial
 98-8    security.  A person required to file a bond or alternate form of
 98-9    financial security before that date is governed by the law in
98-10    effect on the date the bond or other security is required to be
98-11    filed, and the former law is continued in effect for that purpose.
98-12          (e)  This Act prevails over any conflicting or inconsistent
98-13    provision of H.B. No. 1317, 77th Legislature, Regular Session,
98-14    2001, if that bill is enacted and becomes law.
98-15          (f)  As soon as practicable on or after the effective date of
98-16    this Act, the governor, lieutenant governor, and speaker of the
98-17    house of representatives shall appoint members to the Oil-Field
98-18    Cleanup Fund Advisory Committee as provided by Section 91.1135,
98-19    Natural Resources Code, as added by this Act.
98-20          (g)  Subchapter L, Chapter 113, Natural Resources Code, as
98-21    added by this Act, applies beginning with the 2002-2003 school
98-22    year, and each school district that uses liquefied petroleum gas
98-23    shall perform pressure tests as required by that subchapter.
98-24          (h)  Section 102.006, Utilities Code, as added by this Act,
98-25    and Section 2003.0491, Government Code, as added by this Act, apply
98-26    only to a contested case filed at the Railroad Commission of Texas
                                                                S.B. No. 310
    99-1    on or after the effective date of this Act.  A contested case filed
    99-2    at the commission before that date is governed by the law in effect
    99-3    at the time the case is filed, and the former law is continued in
    99-4    effect for that purpose.
            _______________________________     _______________________________
                President of the Senate              Speaker of the House
                  I hereby certify that S.B. No. 310 passed the Senate on
            April 17, 2001, by a viva-voce vote; May 18, 2001, Senate refused
            to concur in House amendments and requested appointment of
            Conference Committee; May 21, 2001, House granted request of the
            Senate; May 27, 2001, Senate adopted Conference Committee Report by
            a viva-voce vote.
                                                _______________________________
                                                    Secretary of the Senate
                  I hereby certify that S.B. No. 310 passed the House, with
            amendments, on May 16, 2001, by a non-record vote; May 21, 2001,
            House granted request of the Senate for appointment of Conference
            Committee; May 27, 2001, House adopted Conference Committee Report
            by the following vote:  Yeas 145, Nays 0, one present not voting.
                                                _______________________________
                                                    Chief Clerk of the House
            Approved:
            _______________________________
                         Date
            _______________________________
                       Governor