77R14548 SMH-D                          
         By Harris                                              S.B. No. 310
         Substitute the following for S.B. No. 310:
         By Lewis of Orange                                 C.S.S.B. No. 310
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Railroad
 1-3     Commission of Texas.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Articles 6445a, 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
 2-1     interested otherwise than voluntarily, he shall within a reasonable
 2-2     time divest himself of such interest, failing to do this, his
 2-3     office shall become vacant.]
 2-4           [Shall hold no other office, etc.--No commissioner shall hold
 2-5     any other office of any character, while such commissioner, nor
 2-6     engage in any occupation or business inconsistent with his duties
 2-7     as such commissioner.]
 2-8           Oath, etc.--Before entering upon the duties of his office,
 2-9     each commissioner shall take and subscribe to the official oath and
2-10     shall in addition thereto[,] swear that he [is not directly or
2-11     indirectly interested in any railroad, nor in the bonds, stock,
2-12     mortgages, securities, contracts, or earnings of any railroad, and
2-13     that he] will to the best of his ability faithfully and justly
2-14     execute and enforce the provisions of this title[,] and all laws of
2-15     this State concerning railroads, which oath shall be filed with the
2-16     Secretary of State.
2-17           Organization.--The commissioners shall elect one of their
2-18     number chairman.  They may make all rules necessary for their
2-19     government and proceedings.  They shall be known collectively as
2-20     the "Railroad Commission of Texas," and shall have a seal, a star
2-21     of five points with the words "Railroad Commission of Texas"
2-22     engraved thereon.  They shall be furnished necessary furniture,
2-23     stationery, supplies and all necessary expenses, to be paid for on
2-24     the order of the Governor.
2-25           Expenses.--The Commissioners shall receive from the State
2-26     their necessary traveling expenses while traveling on the business
2-27     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 an
3-11     intra-agency career ladder program, one part of which shall be the
3-12     intra-agency posting of all nonentry level positions for at least
3-13     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
3-27     commission to avoid the unlawful employment practices described by
 4-1     Chapter 21, Labor Code; and
 4-2                 (2)  an analysis of the extent to which the composition
 4-3     of the commission's personnel is in accordance with state and
 4-4     federal law and a description of reasonable methods to achieve
 4-5     compliance with state and federal law.
 4-6           (c)  The policy statement must:
 4-7                 (1)  be updated annually;
 4-8                 (2)  be reviewed by the state Commission on Human
 4-9     Rights for compliance with Subsection (b) of this article; and
4-10                 (3)  be filed with the governor's office[, and other
4-11     personnel practices.  The plan shall also include steps reasonably
4-12     designed to overcome any identified under-utilization of minorities
4-13     and women in the commission's work force and shall include
4-14     objectives and goals, timetables for achieving those objectives and
4-15     goals, and assignments of responsibility for their completion.  The
4-16     plan shall be filed with the governor's office within 60 days after
4-17     the effective date of this section, cover an annual period, and be
4-18     updated at least annually.  Progress reports shall be submitted to
4-19     the governor's office within 30 days of November 1 and April 1 of
4-20     each year and shall include the steps the commission has taken
4-21     within the reporting period to comply with this requirement of this
4-22     section].
4-23           Art. 6447c.  CONFLICT OF INTEREST. (a)  In this section,
4-24     "Texas trade association" means a cooperative and voluntarily
4-25     joined association of business or professional competitors in this
4-26     state designed to assist its members and its industry or profession
4-27     in dealing with mutual business or professional problems and in
 5-1     promoting their common interest.
 5-2           (b)  A person may not be an employee of the commission
 5-3     employed in a "bona fide executive, administrative, or professional
 5-4     capacity," as that phrase is used for purposes of establishing an
 5-5     exemption to the overtime provisions of the federal Fair Labor
 5-6     Standards Act of 1938 (29 U.S.C. Section 201 et seq.) and its
 5-7     subsequent amendments, if:
 5-8                 (1)  the person is an officer, employee, or paid
 5-9     consultant of a Texas trade association in a business or industry
5-10     regulated by the commission; or
5-11                 (2)  the person's spouse is an officer, manager, or
5-12     paid consultant of a Texas [An employee of the commission may not
5-13     be an officer, employee, or paid consultant of a] trade association
5-14     in a business or industry regulated by the commission.
5-15           (c) [(b)]  A person who is required to register as a lobbyist
5-16     under Chapter 305, Government Code, may not act as the general
5-17     counsel to the commission.
5-18           (d) [(c)]  The commission[, as often as necessary,] shall
5-19     provide to members of the commission and to agency employees, as
5-20     often as necessary, information regarding the requirements for
5-21     office or employment under this chapter, including information
5-22     regarding a person's [employees'] responsibilities under applicable
5-23     laws relating to standards of conduct for state officers or
5-24     employees.
5-25           Art. 6447h.  COMPLAINTS. (a)  The commission shall maintain a
5-26     [keep an information] file on [about] each written complaint filed
5-27     with the commission.  The file must include:
 6-1                 (1)  the name of the person who filed the complaint;
 6-2                 (2)  the date the complaint is received by the
 6-3     commission;
 6-4                 (3)  the subject matter of the complaint;
 6-5                 (4)  the name of each person contacted in relation to
 6-6     the complaint;
 6-7                 (5)  a summary of the results of the review or
 6-8     investigation of the complaint; and
 6-9                 (6)  an explanation of the reason the file was closed,
6-10     if the commission closed the file without taking action other than
6-11     to investigate the complaint.
6-12           (b)  The commission shall provide to the person filing the
6-13     complaint and to each person who is a subject of the complaint a
6-14     copy of the commission's policies and procedures relating to
6-15     complaint investigation and resolution.
6-16           (c)  The [relating to a person who has a license, permit, or
6-17     certificate of public convenience and necessity from the
6-18     commission.]
6-19           [(b)  If a written complaint is filed with the commission
6-20     relating to a person who has a license, permit, or certificate of
6-21     public convenience and necessity from the] commission, at least [as
6-22     frequently as] quarterly [and] until final disposition of the
6-23     complaint, [the commission] shall notify the person filing [parties
6-24     to] the complaint and each person who is a subject of the complaint
6-25     of the status of the investigation [complaint] unless the notice
6-26     would jeopardize an undercover investigation.  [This section does
6-27     not apply to complaints under Chapter 91, Natural Resources Code.]
 7-1           SECTION 2.  Title 112, Revised Statutes, is amended by adding
 7-2     Articles 6447k, 6447l, 6447m, and 6447n to read as follows:
 7-3           Art. 6447k.  SEPARATION OF POLICY-MAKING AND MANAGEMENT
 7-4     RESPONSIBILITIES. The commission shall develop and implement
 7-5     policies that clearly separate the policy-making responsibilities
 7-6     of the members of the commission and the management
 7-7     responsibilities of the staff of the commission.
 7-8           Art. 6447l.  PUBLIC PARTICIPATION. The commission shall
 7-9     develop and implement policies that provide the public with a
7-10     reasonable opportunity to appear before the commission and to speak
7-11     on any issue under the jurisdiction of the commission.
7-12           Art. 6447m.  EMPLOYEE INCENTIVE PROGRAM. The commission shall
7-13     provide to commission employees information and training on the
7-14     benefits and methods of participation in the state employee
7-15     incentive program.
7-16           Art. 6447n.  METHOD OF MAKING PAYMENTS TO COMMISSION. (a)
7-17     The commission may authorize payment, as prescribed by the
7-18     commission, of regulatory fees, fines, penalties, and charges for
7-19     goods and services by means of an electronic payment method or a
7-20     credit card issued by a financial institution chartered by a state
7-21     or the United States or issued by a nationally recognized credit
7-22     organization approved by the commission.  A payment by the
7-23     authorized method may be made in person, by telephone, or through
7-24     the Internet.
7-25           (b)  The commission may require a person who makes a payment
7-26     to the commission by means of an electronic payment method or
7-27     credit card to pay a discount or service charge in an amount
 8-1     reasonable and necessary to reimburse the commission for the costs
 8-2     involved in processing the payment.
 8-3           (c)  The commission may adopt rules as necessary to implement
 8-4     this article.
 8-5           SECTION 3.  Section 81.0521, Natural Resources Code, is
 8-6     amended by amending Subsection (a) and adding Subsection (c) to
 8-7     read as follows:
 8-8           (a)  With each application for an exception to any commission
 8-9     rule contained in Chapter 3 of Part I of Title 16 of the Texas
8-10     Administrative Code, the applicant shall submit to the commission a
8-11     fee of $150 [$50].
8-12           (c)  Two-thirds of the proceeds from this fee, including any
8-13     penalties collected in connection with the fee, shall be deposited
8-14     to the oil-field cleanup fund as provided by Section 91.111.
8-15           SECTION 4.  Subsection (a), Section 81.0522, Natural
8-16     Resources Code, is amended to read as follows:
8-17           (a)  With each Natural Gas Policy Act (15 U.S.C. Sections
8-18     3301-3432) application, the applicant shall submit to the
8-19     commission a fee [of $50].  The commission shall set the
8-20     application fee in an amount necessary to cover the cost of the
8-21     commission's well category determination program but not to exceed
8-22     $150.
8-23           SECTION 5.  Section 81.0531, Natural Resources Code, is
8-24     amended by amending Subsections (c) and (d) and adding Subsection
8-25     (e) to read as follows:
8-26           (c)  In determining the amount of the penalty, the commission
8-27     shall consider the permittee's history of previous violations, the
 9-1     seriousness of the violation, any hazard to the health or safety of
 9-2     the public, and the demonstrated good faith of the person charged.
 9-3     In determining the amount of the penalty for a violation of a
 9-4     provision of this title or a rule, order, license, permit, or
 9-5     certificate that relates to pipeline safety, the commission shall
 9-6     consider the guidelines adopted under Subsection (d).
 9-7           (d)  The commission by rule shall adopt guidelines to be used
 9-8     in determining the amount of the penalty for a violation of a
 9-9     provision of this title or a rule, order, license, permit, or
9-10     certificate that relates to pipeline safety.  The guidelines shall
9-11     include a penalty calculation worksheet that specifies the typical
9-12     penalty for certain violations, circumstances justifying
9-13     enhancement of a penalty and the amount of the enhancement, and
9-14     circumstances justifying a reduction in a penalty and the amount of
9-15     the reduction.  The guidelines shall take into account:
9-16                 (1)  the permittee's history of previous violations,
9-17     including the number of previous violations;
9-18                 (2)  the seriousness of the violation and of any
9-19     pollution resulting from the violation;
9-20                 (3)  any hazard to the health or safety of the public;
9-21                 (4)  the degree of culpability;
9-22                 (5)  the demonstrated good faith of the person charged;
9-23     and
9-24                 (6)  any other factor the commission considers
9-25     relevant.
9-26           (e)  A penalty collected under this section shall be
9-27     deposited to the credit of the oil-field cleanup fund.
 10-1          SECTION 6.  Subchapter C, Chapter 81, Natural Resources Code,
 10-2    is amended by adding Section 81.055 to read as follows:
 10-3          Sec. 81.055.  PIPELINE SYSTEM FINANCIAL RESPONSIBILITY
 10-4    REQUIREMENTS. (a)  Not later than March 1, 2002, the commission
 10-5    shall:
 10-6                (1)  study the desirability of requiring an owner,
 10-7    operator, or manager of a pipeline system to obtain liability
 10-8    insurance coverage, a bond, or other evidence of financial
 10-9    responsibility in order to protect the public from the costs
10-10    resulting from a discharge from the pipeline system; and
10-11                (2)  report its findings to the legislature and make
10-12    the report available to the public.
10-13          (b)  If the commission finds that adoption of such a
10-14    requirement is desirable, the commission by rule may require an
10-15    owner, operator, or manager of a pipeline system to obtain evidence
10-16    of financial responsibility.  The rules must specify the
10-17    appropriate form and amount of that evidence and may require
10-18    evidence of financial responsibility in different amounts for
10-19    different pipeline systems, taking into consideration whether the
10-20    pipeline system:
10-21                (1)  has a history of discharges or other violations of
10-22    regulatory requirements; or
10-23                (2)  is located over a public drinking water supply, a
10-24    natural resource, or a critical groundwater resource or near a
10-25    school or populated area.
10-26          SECTION 7.  Subsection (a), Section 81.116, Natural Resources
10-27    Code, is amended to read as follows:
 11-1          (a)  An oil-field cleanup regulatory fee is imposed on crude
 11-2    petroleum produced in this state in the amount of five-eighths
 11-3    [five-sixteenths] of one cent on each barrel of 42 standard
 11-4    gallons.
 11-5          SECTION 8.  Subsection (a), Section 81.117, Natural Resources
 11-6    Code, is amended to read as follows:
 11-7          (a)  An oil-field cleanup regulatory fee is imposed on gas
 11-8    initially produced and saved in this state in the amount of
 11-9    one-fifteenth [one-thirtieth] of one cent for each thousand cubic
11-10    feet.
11-11          SECTION 9.  Sections 85.161 and 85.2021, Natural Resources
11-12    Code, are amended to read as follows:
11-13          Sec. 85.161.  WELL OWNERS AND OPERATORS CERTIFICATES. The
11-14    owner or operator of any [an oil or gas] well subject to the
11-15    jurisdiction of the commission[, before connecting with any oil or
11-16    gas pipeline,] shall secure from the commission a certificate
11-17    showing compliance with the oil or gas conservation laws of the
11-18    state and conservation rules and orders of the commission.
11-19          Sec. 85.2021.  DRILLING PERMIT FEE. (a)  With each
11-20    application or materially amended application for a permit to
11-21    drill, deepen, plug back, or reenter a well, the applicant shall
11-22    submit to the commission a nonrefundable fee of:
11-23                (1)  $200 [$100] if the total depth of the well is
11-24    2,000 feet or less;
11-25                (2)  $225 [$125] if the total depth of the well is
11-26    greater than 2,000 feet but less than or equal to 4,000 feet;
11-27                (3)  $250 [$150] if the total depth of the well is
 12-1    greater than 4,000 feet but less than or equal to 9,000 feet;
 12-2                (4)  $300 [$200] if the total depth of the well is
 12-3    greater than 9,000 feet.
 12-4          (b)  An applicant shall submit an additional nonrefundable
 12-5    fee of $200 when a Rule 37 spacing or a Rule 38 density exception
 12-6    review is requested.
 12-7          (c)  An applicant shall submit an additional nonrefundable
 12-8    fee of $150 [$50] when requesting that the commission expedite the
 12-9    application for a permit to drill, deepen, plug back, or reenter a
12-10    well.
12-11          (d) [(c)]  With each application for an extension of time to
12-12    plug a well pursuant to commission rules, an applicant shall submit
12-13    to the commission a nonrefundable fee of $300 [$100], unless the
12-14    applicant has filed a bond under Section 91.1041 or Section 91.1042
12-15    of this code.
12-16          (e) [(d)]  All fees collected under this section shall be
12-17    deposited in the state oil-field cleanup fund.
12-18          SECTION 10.  Effective September 1, 2004, Subdivision (2),
12-19    Subsection (a), Section 89.002, Natural Resources Code, is amended
12-20    to read as follows:
12-21                (2)  "Operator" means a person who assumes
12-22    responsibility for the physical operation and control of a well as
12-23    shown by a form the person files with the commission and the
12-24    commission approves. The commission may not require a person to
12-25    assume responsibility for a well as a condition to being permitted
12-26    to assume responsibility for another well.  In the event of a sale
12-27    or conveyance of an unplugged well or the right to operate an
 13-1    unplugged well, a person ceases being the operator for the purpose
 13-2    of Section 89.011 only if the well was in compliance with
 13-3    commission rules relating to safety or the prevention or control of
 13-4    pollution at the time of sale or conveyance and once the person who
 13-5    acquires the well or right to operate the well:
 13-6                      (A)  specifically identifies the well as a well
 13-7    for which the person assumes plugging responsibility on forms
 13-8    required and approved by the commission;
 13-9                      (B)  has a commission-approved organization
13-10    report as required by Section 91.142;
13-11                      (C)  has a commission-approved bond or letter of
13-12    credit [other form of financial security] under Sections
13-13    91.103-91.107 covering the well; and
13-14                      (D)  places the well in compliance with
13-15    commission rules.
13-16          SECTION 11.  Subsection (c), Section 89.043, Natural
13-17    Resources Code, is amended to read as follows:
13-18          (c)  Not later than [On or before] the 30th day before the
13-19    date the commission enters into a contract to plug a delinquent
13-20    inactive well, the commission shall send a notice by certified mail
13-21    to the operator of the well at the address last reported to the
13-22    commission as required by Section 91.142 and commission rules.  The
13-23    notice shall direct the operator to plug the well and shall state
13-24    that:
13-25                (1)  the commission may plug the well and foreclose its
13-26    statutory lien under Section 89.083 unless the operator requests a
13-27    hearing not later than the 10th day after the date the operator
 14-1    receives the notice;
 14-2                (2)  if the commission forecloses its statutory lien
 14-3    under Section 89.083 [plugs the well], all well-site equipment will
 14-4    be presumed to have been abandoned and the commission may dispose
 14-5    of the equipment and hydrocarbons from the well as provided by
 14-6    Section 89.085;
 14-7                (3)  if the commission plugs the well, the commission:
 14-8                      (A)  by order may require the operator to
 14-9    reimburse the commission for the plugging costs; or
14-10                      (B)  may request the attorney general to file
14-11    suit against the operator to recover those costs; [and]
14-12                (4)  the commission has a statutory lien on all
14-13    well-site equipment under Section 89.083; and
14-14                (5)  the lien described by Subdivision (4) is
14-15    foreclosed by operation of law if the commission does not receive a
14-16    valid and timely request for a hearing before the 15th day after
14-17    the date the notice is mailed.
14-18          SECTION 12.  Subsection (c), Section 89.083, Natural
14-19    Resources Code, is amended to read as follows:
14-20          (c)  The lien may be foreclosed by judicial action or
14-21    commission order at any time after notice and an opportunity for a
14-22    hearing.  If notice is mailed under Section 89.043 and if the lien
14-23    is not previously foreclosed, the lien is foreclosed by operation
14-24    of law on the 15th day after the date the notice is mailed unless
14-25    the commission has received a valid and timely request for a
14-26    hearing before that date.  [The commission may foreclose on the
14-27    lien by entering into a plugging contract.]  The commission is not
 15-1    required to give notice or an opportunity for a hearing to
 15-2    subordinate lienholders or nonoperators before foreclosing the lien
 15-3    [entering into a plugging contract].
 15-4          SECTION 13.  Subsections (a), (g), and (h), Section 89.085,
 15-5    Natural Resources Code, are amended to read as follows:
 15-6          (a)  When the commission forecloses its lien under Section
 15-7    89.083 on [enters into a contract to plug] a delinquent inactive
 15-8    well, well-site equipment and any amount of hydrocarbons from the
 15-9    well that is stored on the lease are presumed to have been
15-10    abandoned and may be disposed of by the commission in a
15-11    commercially reasonable manner by either or both of the following
15-12    methods:
15-13                (1)  entering into a plugging contract that provides
15-14    [may provide] that the person plugging or cleaning up pollution, or
15-15    both, will take title to well-site equipment, hydrocarbons from the
15-16    well that are stored on the lease, or hydrocarbons recovered during
15-17    the plugging operation in exchange for a sum of money deducted as a
15-18    credit from the contract price; or
15-19                (2)  selling the well-site equipment, hydrocarbons from
15-20    the well that are stored on the lease, or hydrocarbons recovered
15-21    during the plugging operation [may be sold] at a public auction or
15-22    a public or private sale.
15-23          (g)  The notice required by Subsection (f) of this section
15-24    must include [shall state]:
15-25                (1)  the lease name;
15-26                (2)  the well number;
15-27                (3)  the county in which the well is located;
 16-1                (4)  the abstract number of the property on which the
 16-2    lease is situated;
 16-3                (5)  the commission lease or gas well identification
 16-4    number or drilling permit number;
 16-5                (6)  a list of the property disposed of under this
 16-6    section; and
 16-7                (7)  a statement that any person who has a legal or
 16-8    equitable ownership or security interest in the equipment or
 16-9    hydrocarbons that was in existence on the date the commission
16-10    foreclosed its statutory lien [entered into a contract to plug or
16-11    clean up the well] may file a claim with the commission.
16-12          (h)  Not later than the 180th day after the date the
16-13    well-site equipment or hydrocarbons are disposed of under this
16-14    section, the commission shall publish a notice that states:
16-15                (1)  the lease name;
16-16                (2)  the well number;
16-17                (3)  the county in which the well is located;
16-18                (4)  the commission lease or gas well identification
16-19    number or drilling permit number; and
16-20                (5)  that equipment or hydrocarbons if applicable from
16-21    the well and lease were disposed of under this section and that any
16-22    person who has a legal or equitable ownership or security interest
16-23    in the equipment or hydrocarbons that was in existence on the date
16-24    the commission foreclosed its statutory lien [entered into a
16-25    contract to plug or clean up the well] may file a claim with the
16-26    commission.
16-27          SECTION 14.  Subsections (a) and (c), Section 89.086, Natural
 17-1    Resources Code, are amended to read as follows:
 17-2          (a)  A person with a legal or equitable ownership or security
 17-3    interest in well-site equipment or hydrocarbons disposed of under
 17-4    Section 89.085 of this code may make a claim against the oil-field
 17-5    cleanup fund unless an element of the transaction giving rise to
 17-6    the interest occurs after the commission forecloses its statutory
 17-7    lien under Section 89.083 [enters into a plugging contract].
 17-8          (c)  A claimant must identify the well-site equipment or
 17-9    hydrocarbons in which the claimant has an interest and state the
17-10    amount of the property interest as of the date the commission
17-11    foreclosed its statutory lien under Section 89.083 [entered into
17-12    the plugging contract].
17-13          SECTION 15. Effective September 1, 2004, Section 91.103,
17-14    Natural Resources Code, is amended to read as follows:
17-15          Sec. 91.103.  PERSONS REQUIRED TO EXECUTE BOND OR LETTER OF
17-16    CREDIT [ALTERNATE FORM OF FINANCIAL SECURITY]. Any person,
17-17    including any firm, partnership, joint stock association,
17-18    corporation, or other organization, required to file an
17-19    organization report under Section 91.142 of this code shall execute
17-20    and file with the commission a bond or letter of credit [alternate
17-21    form of financial security].
17-22          SECTION 16. Subsections (b) and (c), Section 91.104, Natural
17-23    Resources Code, are amended to read as follows:
17-24          (b)  A person required to file a bond under Section 91.103
17-25    may choose to file:
17-26                (1)  an individual bond as provided under Section
17-27    91.1041;
 18-1                (2)  a blanket bond as provided under Section 91.1042;
 18-2                (3)  a letter of credit in the same amount as required
 18-3    for a blanket bond under Section 91.1042;
 18-4                (4)  a nonrefundable annual fee of $1,000 [$100], if:
 18-5                      (A)  the commission determines that individual
 18-6    and blanket bonds as specified by Subdivisions (1) and (2) are not
 18-7    obtainable at reasonable prices; and
 18-8                      (B)  the person can demonstrate to the commission
 18-9    an acceptable record of compliance with all commission rules,
18-10    orders, licenses, permits, or certificates that relate to safety or
18-11    the prevention or control of pollution for the previous 48 months
18-12    and the person and, if a firm, partnership, joint stock
18-13    association, corporation, or other organization, its officers,
18-14    directors, general partners, or owners of more than 25 percent
18-15    ownership interest or any trustee:
18-16                            (i) [(A)]  has no outstanding violations of
18-17    such commission rules, orders, licenses, permits, or certificates;
18-18                            (ii) [(B)]  has paid all administrative,
18-19    civil, and criminal penalties, if any, relating to any violation of
18-20    such commission rules, orders, licenses, permits, or certificates;
18-21    and
18-22                            (iii) [(C)]  has paid all reimbursements of
18-23    any costs and expenses incurred by the commission in relation to
18-24    any violation of such commission rules, orders, licenses, permits,
18-25    or certificates; or
18-26                (5) [(4)]  a nonrefundable annual fee equal to 12-1/2
18-27    [three] percent of the bond that otherwise would be required[; or]
 19-1                [(5)  to give a first lien on tangible personal
 19-2    property associated with oil and gas production whose salvage value
 19-3    equals the value of an individual bond under Section 91.1041 or the
 19-4    value of a blanket bond under Section 91.1042 that otherwise would
 19-5    be required].
 19-6          (c)  A person who chooses to file a form of financial
 19-7    security other than a bond or letter of credit shall also submit a
 19-8    fee of $300 [$100] for each application to extend the time to plug
 19-9    a well in accordance with Section 85.2021 [of this code].
19-10          SECTION 17. Effective September 1, 2004, Section 91.104,
19-11    Natural Resources Code, is amended to read as follows:
19-12          Sec. 91.104.  BONDS AND LETTERS OF CREDIT [ALTERNATE FORMS OF
19-13    FINANCIAL SECURITY]. (a)  The commission shall require a bond or
19-14    letter of credit [an alternate form of financial security] to be
19-15    filed with the commission as provided by Subsection (b) of this
19-16    section.
19-17          (b)  A person required to file a bond under Section 91.103
19-18    may choose to file:
19-19                (1)  an individual bond as provided under Section
19-20    91.1041;
19-21                (2)  a blanket bond as provided under Section 91.1042;
19-22    or
19-23                (3)  a letter of credit in the same amount as required
19-24    for a blanket bond under Section 91.1042 [nonrefundable annual fee
19-25    of $100, if the person can demonstrate to the commission an
19-26    acceptable record of compliance with all commission rules, orders,
19-27    licenses, permits, or certificates that relate to safety or the
 20-1    prevention or control of pollution for the previous 48 months and
 20-2    the person and, if a firm, partnership, joint stock association,
 20-3    corporation, or other organization, its officers, directors,
 20-4    general partners, or owners of more than 25 percent ownership
 20-5    interest or any trustee:]
 20-6                      [(A)  has no outstanding violations of such
 20-7    commission rules, orders, licenses, permits, or certificates;]
 20-8                      [(B)  has paid all administrative, civil, and
 20-9    criminal penalties, if any, relating to any violation of such
20-10    commission rules, orders, licenses, permits, or certificates; and]
20-11                      [(C)  has paid all reimbursements of any costs
20-12    and expenses incurred by the commission in relation to any
20-13    violation of such commission rules, orders, licenses, permits, or
20-14    certificates;]
20-15                [(4)  a nonrefundable annual fee equal to three percent
20-16    of the bond that otherwise would be required; or]
20-17                [(5)  to give a first lien on tangible personal
20-18    property associated with oil and gas production whose salvage value
20-19    equals the value of an individual bond under Section 91.1041 or the
20-20    value of a blanket bond under Section 91.1042 that otherwise would
20-21    be required].
20-22          [(c)  A person who chooses to file a form of financial
20-23    security other than a bond shall also submit a fee of $100 for each
20-24    application to extend the time to plug a well in accordance with
20-25    Section 85.2021 of this code.]
20-26          SECTION 18. Sections 91.1041 and 91.1042, Natural Resources
20-27    Code, are amended to read as follows:
 21-1          Sec. 91.1041.  INDIVIDUAL BOND. (a)  A person required to
 21-2    file a bond under Section 91.103 who operates one or more wells may
 21-3    file a bond in an amount equal to $2 for each foot of well depth
 21-4    for each well.
 21-5          (b)  Notwithstanding Subsection (a), the commission by rule
 21-6    shall set the amount of the bond for an operator of one or more bay
 21-7    or offshore wells at a reasonable amount that exceeds the amount
 21-8    provided by Subsection (a).
 21-9          Sec. 91.1042.  BLANKET BOND. (a)  A person required to file a
21-10    bond under Section 91.103 may file a blanket bond to cover all
21-11    wells and operations for which a bond is required as follows:
21-12                (1)  a person who operates 10 or fewer wells or
21-13    performs other operations shall file a $25,000 blanket bond;
21-14                (2)  a person who operates more than 10 but fewer than
21-15    100 wells shall file a $50,000 blanket bond; and
21-16                (3)  a person who operates 100 or more wells shall file
21-17    a $250,000 blanket bond.
21-18          (b)  Notwithstanding Subsection (a), the commission by rule
21-19    shall set the amount of the bond for an operator of bay or offshore
21-20    wells at a reasonable amount that exceeds the amount provided by
21-21    Subsection (a)(1), (2), or (3), as applicable.
21-22          SECTION 19. Effective September 1, 2004, Section 91.107,
21-23    Natural Resources Code, is amended to read as follows:
21-24          Sec. 91.107.  NEW BOND OR LETTER OF CREDIT [ALTERNATE FORM OF
21-25    FINANCIAL SECURITY]. If a well [covered by a bond or alternate form
21-26    of financial security] is transferred, sold, or assigned by its
21-27    operator, the commission shall require the party acquiring the well
 22-1    to file a new bond or letter of credit [alternate form of financial
 22-2    security] as provided by this subchapter, and the [bond or
 22-3    alternate form of] financial security of the prior operator shall
 22-4    continue to be required and to remain in effect until the new bond
 22-5    or letter of credit [alternate form of financial security] is
 22-6    provided or the commission determines that the financial security
 22-7    previously submitted to the commission by the person acquiring the
 22-8    well complies with this subchapter.
 22-9          SECTION 20. Section 91.111, Natural Resources Code, is
22-10    amended by amending Subsections (b) and (c) and adding Subsection
22-11    (e) to read as follows:
22-12          (b)  The commission shall certify to the comptroller the date
22-13    on which the balance in the fund equals or exceeds $20 [$10]
22-14    million.  The oil-field cleanup regulatory fees on oil and gas
22-15    shall not be collected or required to be paid on or after the first
22-16    day of the second month following the certification, except that
22-17    the comptroller shall resume collecting the fees on receipt of a
22-18    commission certification that the fund has fallen below $10 [$6]
22-19    million.  The comptroller shall continue collecting the fees until
22-20    collections are again suspended in the manner provided by this
22-21    subsection.
22-22          (c)  The fund consists of:
22-23                (1)  penalties imposed under Section 85.381 for
22-24    violation of a law, order, or rule relating to well plugging
22-25    requirements;
22-26                (2)  proceeds from bonds and other financial assurances
22-27    required by this chapter, subject to the refund provisions of
 23-1    Section 91.1091;
 23-2                (3)  private contributions, including contributions
 23-3    made under Section 89.084;
 23-4                (4)  expenses collected under Section 89.083;
 23-5                (5)  fees imposed under Section 85.2021;
 23-6                (6)  civil penalties collected for violations of
 23-7    Chapter 89 or of rules or orders relating to plugging that are
 23-8    adopted under this code;
 23-9                (7)  proceeds collected under Sections 89.085 and
23-10    91.115;
23-11                (8)  interest earned on the funds deposited in the
23-12    fund;
23-13                (9)  fees collected under Section 91.104;
23-14                (10)  civil penalties or costs recovered under Section
23-15    91.457 or 91.459;
23-16                (11)  oil and gas waste hauler permit application fees
23-17    collected under Section 29.015, Water Code;
23-18                (12)  costs recovered under Section 91.113(f);
23-19                (13)  hazardous oil and gas waste generation fees
23-20    collected under Section 91.605;
23-21                (14)  oil-field cleanup regulatory fees on oil
23-22    collected under Section 81.116;
23-23                (15)  oil-field cleanup regulatory fees on gas
23-24    collected under Section 81.117;
23-25                (16)  fees for a reissued certificate collected under
23-26    Section 85.167;
23-27                (17)  fees collected under Section 91.1013;
 24-1                (18)  fees collected under Section 89.088;
 24-2                (19)  penalties collected under Section 81.0531; [and]
 24-3                (20)  fees collected under Section 91.142;
 24-4                (21)  fees collected under Section 91.653;
 24-5                (22)  costs recovered under Sections 91.655 and 91.656;
 24-6                (23)  two-thirds of the fees collected under Section
 24-7    81.0521; and
 24-8                (24)  legislative appropriations.
 24-9          (e)  The commission, through the legislative appropriations
24-10    request process, shall establish specific performance goals for the
24-11    oil-field cleanup fund for the next biennium, including goals for
24-12    the number of:
24-13                (1)  site investigations and environmental assessments
24-14    to be conducted;
24-15                (2)  abandoned wells to be plugged; and
24-16                (3)  surface locations to be remediated.
24-17          SECTION 21. Section 91.112, Natural Resources Code, is
24-18    amended to read as follows:
24-19          Sec. 91.112.  PURPOSE OF THE FUND. (a)  Money in the fund may
24-20    be used by the commission or its employees or agents for:
24-21                (1)  conducting a site investigation or environmental
24-22    assessment to determine:
24-23                      (A)  the nature and extent of contamination
24-24    caused by oil and gas wastes or other substances or materials
24-25    regulated by the commission under Section 91.101; and
24-26                      (B)  the measures that should be taken to control
24-27    or clean up the wastes, substances, or materials described in
 25-1    Paragraph (A);
 25-2                (2)  controlling or cleaning up oil and gas wastes or
 25-3    other substances or materials regulated by the commission under
 25-4    Section 91.101 that are causing or are likely to cause the
 25-5    pollution of surface or subsurface water, consistent with Section
 25-6    91.113;
 25-7                (3)  plugging abandoned wells and administering or
 25-8    enforcing permits, orders, and rules relating to the commission's
 25-9    authority to prevent pollution under this chapter, Chapter 89, or
25-10    any other law administered or enforced by the commission under
25-11    Title 3;
25-12                (4)  implementing Subchapter N and enforcing rules,
25-13    orders, and permits adopted or issued under that subchapter;  [and]
25-14                (5)  implementing the voluntary cleanup program under
25-15    Subchapter O; and
25-16                (6)  preparing the report required under Subsection
25-17    (b).
25-18          (b)  The commission shall submit to the legislature and make
25-19    available to the public, annually, a report that reviews the extent
25-20    to which money provided under Section 91.111 has enabled the
25-21    commission to better protect the environment and enhance the income
25-22    of the oil-field cleanup fund.  The report shall include:
25-23                (1)  the number of wells plugged, by region;
25-24                (2)  the number of wells abandoned, by region;
25-25                (3)  the number of inactive wells not currently in
25-26    compliance with commission rules, by region;
25-27                (4)  the status of enforcement proceedings for all
 26-1    wells in violation of commission rules and the time period during
 26-2    which the wells have been in violation, by region in which the
 26-3    wells are located;
 26-4                (5)  the number of surface locations remediated, by
 26-5    region;
 26-6                (6)  a detailed accounting of expenditures of money in
 26-7    the fund, including expenditures for site investigations and
 26-8    environmental assessments, plugging of abandoned wells, remediation
 26-9    of surface locations, and staff salaries and other administrative
26-10    expenses;
26-11                (7)  the method by which the commission sets priorities
26-12    by which it determines the order in which abandoned wells are
26-13    plugged;
26-14                (8) [(6)]  a projection of the amount of money needed
26-15    for the next biennium for conducting site investigations and
26-16    environmental assessments, plugging abandoned wells, and
26-17    remediating surface locations; [and]
26-18                (9) [(7)]  the status of implementation of the
26-19    provisions of Section 89.085 relating to possession and sale of
26-20    equipment to recover plugging costs; and
26-21                (10)  the number of sites successfully remediated under
26-22    the voluntary cleanup program under Subchapter O, by region.
26-23          SECTION 22. Subchapter D, Chapter 91, Natural Resources Code,
26-24    is amended by adding Sections 91.1131 and 91.1135 to read as
26-25    follows:
26-26          Sec. 91.1131.  RISK ASSESSMENT STANDARDS; PRIORITIZATION OF
26-27    HIGH-RISK WELLS. (a)  The commission by rule shall establish risk
 27-1    assessment as the guide for:
 27-2                (1)  conducting site investigations and environmental
 27-3    assessments; and
 27-4                (2)  controlling and cleaning up oil and gas wastes and
 27-5    other substances and materials.
 27-6          (b)  Rules adopted under this section must provide for:
 27-7                (1)  determining whether an actual or potential risk
 27-8    exists at a site;
 27-9                (2)  screening contaminants at the site to identify
27-10    those that pose a risk;
27-11                (3)  developing cleanup standards based on
27-12    contamination levels that are protective of human health and the
27-13    environment; and
27-14                (4)  establishing a reporting mechanism for informing
27-15    the commission regarding specific remediation activities.
27-16          (c)  The commission by rule shall develop a system for:
27-17                (1)  identifying abandoned wells that pose a high risk
27-18    of contaminating surface water or groundwater;
27-19                (2)  periodically testing high-risk wells by conducting
27-20    a fluid level test or, if necessary, a pressure test; and
27-21                (3)  giving priority to plugging high-risk wells with
27-22    compromised casings.
27-23          Sec. 91.1135.  OIL-FIELD CLEANUP FUND ADVISORY COMMITTEE. (a)
27-24    In this section, "committee" means the Oil-Field Cleanup Fund
27-25    Advisory Committee.
27-26          (b)  The committee is composed of 10 members as follows:
27-27                (1)  the presiding officer of the senate committee with
 28-1    primary jurisdiction over matters affecting natural resources;
 28-2                (2)  the presiding officer of the house committee with
 28-3    primary jurisdiction over matters affecting energy resources;
 28-4                (3)  one public member appointed by the governor;
 28-5                (4)  one member appointed by the lieutenant governor
 28-6    from the academic field of geology or economics;
 28-7                (5)  one member appointed by the speaker of the house
 28-8    of representatives from the academic field of geology or economics;
 28-9    and
28-10                (6)  the executive officer, or a person designated by
28-11    the executive officer, of each of the following organizations:
28-12                      (A)  the Texas Oil and Gas Association;
28-13                      (B)  the Texas Independent Producers and Royalty
28-14    Owners Association;
28-15                      (C)  the Panhandle Producers and Royalty Owners
28-16    Association;
28-17                      (D)  the Permian Basin Petroleum Association; and
28-18                      (E)  the Alliance of Energy Partners.
28-19          (c)  An appointed member of the committee serves at the will
28-20    of the authority that appointed the member.
28-21          (d)  The committee shall:
28-22                (1)  meet at least quarterly with the commission;
28-23                (2)  receive information about rules proposed by the
28-24    commission relating to the oil-field cleanup fund;
28-25                (3)  review recommendations for legislation proposed by
28-26    the commission; and
28-27                (4)  monitor the effectiveness of the oil-field cleanup
 29-1    fund.
 29-2          (e)  The commission shall provide quarterly reports to the
 29-3    committee and the Legislative Budget Board that include:
 29-4                (1)  the following information with respect to the
 29-5    period since the last report was provided as well as cumulatively:
 29-6                      (A)  the amount of money deposited in the
 29-7    oil-field cleanup fund;
 29-8                      (B)  the amount of money spent from the fund;
 29-9                      (C)  the balance of the fund;
29-10                      (D)  the number of wells plugged with money from
29-11    the fund;
29-12                      (E)  the number of sites remediated with money
29-13    from the fund; and
29-14                      (F)  the number of wells abandoned; and
29-15                (2)  any additional information or data requested in
29-16    writing by the committee.
29-17          (f)  The committee may:
29-18                (1)  submit to the commission comments of the committee
29-19    regarding proposed rules relating to the oil-field cleanup fund;
29-20    and
29-21                (2)  request reports and other information from the
29-22    commission as necessary to implement this section.
29-23          (g)  Not later than November 15 of each even-numbered year,
29-24    the committee shall report to the governor, lieutenant governor,
29-25    and speaker of the house of representatives on the committee's
29-26    activities.  The report must include:
29-27                (1)  an analysis of any problems with the
 30-1    administration of the oil-field cleanup fund; and
 30-2                (2)  recommendations for any legislation needed to
 30-3    address any problems identified with the administration of the fund
 30-4    or otherwise needed to further the purposes of the fund.
 30-5          SECTION 23. Section 91.142, Natural Resources Code, is
 30-6    amended by adding Subsection (g) to read as follows:
 30-7          (g)  An organization report filed under this section must be
 30-8    accompanied by the following fee:
 30-9                (1)  for an operator of not more than 25 wells, $300;
30-10                (2)  for an operator of more than 25 but not more than
30-11    100 wells, $500;
30-12                (3)  for an operator of more than 100 wells, $1,000;
30-13                (4)  for an operator of one or more natural gas
30-14    pipelines as classified by the commission, $100;
30-15                (5)  for an operator of one or more service activities
30-16    or facilities, including liquids pipelines as classified by the
30-17    commission, who does not operate any wells, an amount determined by
30-18    the commission but not less than $300 or more than $500; and
30-19                (6)  for an operator of one or more service activities
30-20    or facilities, including liquids pipelines as classified by the
30-21    commission, who also operates one or more wells, an amount
30-22    determined by the commission based on the sum of the amounts
30-23    provided by the applicable subdivisions of this subsection but not
30-24    less than $300 or more than $1,000.
30-25          SECTION 24. Subsections (a) and (b), Section 91.1013, Natural
30-26    Resources Code, are amended to read as follows:
30-27          (a)  With each application for a fluid injection well permit,
 31-1    the applicant shall submit to the commission a nonrefundable fee of
 31-2    $200 [$100].  In this section, "fluid injection well" means any
 31-3    well used to inject fluid or gas into the ground in connection with
 31-4    the exploration or production of oil or gas other than an oil and
 31-5    gas waste disposal well regulated by the commission pursuant to
 31-6    Chapter 27, Water Code.
 31-7          (b)  With each application for a permit to discharge to
 31-8    surface water under this chapter and commission rules, other than a
 31-9    permit for a discharge that meets National Pollutant Discharge
31-10    Elimination System requirements for agricultural or wildlife use,
31-11    the applicant shall submit to the commission a nonrefundable fee of
31-12    $300 [$200].
31-13          SECTION 25. Chapter 91, Natural Resources Code, is amended by
31-14    adding Subchapter O to read as follows:
31-15       SUBCHAPTER O.  RAILROAD COMMISSION VOLUNTARY CLEANUP PROGRAM
31-16          Sec. 91.651.  DEFINITIONS. In this subchapter:
31-17                (1)  "Contaminant" includes a waste, pollutant, or
31-18    substance regulated by, or that results from an activity under the
31-19    jurisdiction of, the commission under this chapter, Chapter 141 of
31-20    this code, or Chapter 27, Water Code.
31-21                (2)  "Environmental assessment" means the assessment
31-22    described by Section 91.653.
31-23                (3)  "Response action" means the cleanup or removal of
31-24    a contaminant from the environment.
31-25                (4)  "Voluntary cleanup" means a response action taken
31-26    under and in compliance with this subchapter.
31-27          Sec. 91.652.  ELIGIBILITY FOR VOLUNTARY CLEANUP PROGRAM. (a)
 32-1    Any site that is contaminated with a contaminant is eligible for
 32-2    participation in the voluntary cleanup program except the portion
 32-3    of a site that may be subject to a commission order.
 32-4          (b)  A person electing to participate in the voluntary
 32-5    cleanup program must:
 32-6                (1)  enter into a voluntary cleanup agreement as
 32-7    provided by Section 91.655; and
 32-8                (2)  pay all costs of commission oversight of the
 32-9    voluntary cleanup.
32-10          Sec. 91.653.  APPLICATION TO PARTICIPATE IN VOLUNTARY CLEANUP
32-11    PROGRAM. (a)  A person who desires to participate in the voluntary
32-12    cleanup program under this subchapter must submit to the commission
32-13    an application and an application fee as prescribed by this
32-14    section.
32-15          (b)  An application submitted under this section must:
32-16                (1)  be on a form provided by the commission;
32-17                (2)  contain:
32-18                      (A)  general information concerning:
32-19                            (i)  the person and the person's
32-20    capability, including the person's financial capability, to perform
32-21    the voluntary cleanup;
32-22                            (ii)  the site; and
32-23                            (iii)  the name, address, and telephone
32-24    number of all surface and mineral owners;
32-25                      (B)  other background information requested by
32-26    the commission;
32-27                      (C)  an environmental assessment of the actual or
 33-1    threatened release of the contaminant at the site; and
 33-2                      (D)  if the person applying is not the surface
 33-3    owner, written authorization from the surface owner agreeing to the
 33-4    applicant's participation in the program;
 33-5                (3)  be accompanied by an application fee of $1,000;
 33-6    and
 33-7                (4)  be submitted according to schedules set by the
 33-8    commission.
 33-9          (c)  The environmental assessment required by Subsection (b)
33-10    must include:
33-11                (1)  a legal description of the site;
33-12                (2)  a description of the physical characteristics of
33-13    the site;
33-14                (3)  the operational history of the site to the extent
33-15    that history is known by the applicant;
33-16                (4)  information of which the applicant is aware
33-17    concerning the nature and extent of any relevant contamination or
33-18    release at the site and immediately contiguous to the site, or
33-19    wherever the contamination came to be located; and
33-20                (5)  relevant information of which the applicant is
33-21    aware concerning the potential for human exposure to contamination
33-22    at the site.
33-23          (d)  An application shall be processed in the order in which
33-24    it is received.
33-25          (e)  Fees collected under this section shall be deposited to
33-26    the credit of the oil-field cleanup fund under Section 91.111.
33-27          Sec. 91.654.  REJECTION OF APPLICATION. (a)  The commission
 34-1    may reject an application submitted under Section 91.653 if:
 34-2                (1)  a state or federal enforcement action is pending
 34-3    that concerns the remediation of the contaminant described in the
 34-4    application;
 34-5                (2)  a federal grant requires an enforcement action at
 34-6    the site;
 34-7                (3)  the application is incomplete or inaccurate; or
 34-8                (4)  the site is ineligible under Section 91.652.
 34-9          (b)  If an application is rejected because it is incomplete
34-10    or inaccurate, the commission, not later than the 45th day after
34-11    receipt of the application, shall provide the person with a list of
34-12    all information needed to make the application complete or
34-13    accurate.  A person may resubmit an application once without
34-14    submitting an additional application fee if the person resubmits
34-15    the application not later than the 45th day after the date the
34-16    commission issues notice that the application has been rejected.
34-17          (c)  If the commission rejects the application, the
34-18    commission shall:
34-19                (1)  notify the person that the application has been
34-20    rejected;
34-21                (2)  explain the reasons for rejection of the
34-22    application; and
34-23                (3)  inform the person that the commission will refund
34-24    half the person's application fee unless the person indicates a
34-25    desire to resubmit the application.
34-26          Sec. 91.655.  VOLUNTARY CLEANUP AGREEMENT. (a)  Before the
34-27    commission evaluates any plan or report detailing the remediation
 35-1    goals and proposed methods of remediation, the person desiring to
 35-2    participate in the voluntary cleanup program must enter into a
 35-3    voluntary cleanup agreement that sets forth the terms and
 35-4    conditions of the evaluation of the reports and the implementation
 35-5    of work plans.
 35-6          (b)  A voluntary cleanup agreement must provide for:
 35-7                (1)  recovery by the commission of all reasonable
 35-8    costs:
 35-9                      (A)  incurred by the commission in review and
35-10    oversight of the person's work plan and reports and as a result of
35-11    the commission's field activities;
35-12                      (B)  attributable to the voluntary cleanup
35-13    agreement; and
35-14                      (C)  in excess of the amount of fees submitted by
35-15    the applicant under Section 91.653;
35-16                (2)  a schedule of payments to the commission to be
35-17    made by the person for recovery of all commission costs fairly
35-18    attributable to the voluntary cleanup program, including direct and
35-19    indirect costs of overhead, salaries, equipment, and utilities, and
35-20    legal, management, and support costs; and
35-21                (3)  appropriate tasks, deliverables, and schedules.
35-22          (c)  The voluntary cleanup agreement shall:
35-23                (1)  identify all statutes and rules with which the
35-24    person must comply;
35-25                (2)  describe any work plan or report to be submitted
35-26    for review by the commission, including a final report that
35-27    provides all information necessary to verify that all work
 36-1    contemplated by the voluntary cleanup agreement has been completed;
 36-2                (3)  include a schedule for submitting the information
 36-3    required by Subdivision (2); and
 36-4                (4)  state the technical standards to be applied in
 36-5    evaluating the work plans and reports, with reference to the
 36-6    proposed future land use to be achieved.
 36-7          (d)  If an agreement is not reached between a person desiring
 36-8    to participate in the voluntary cleanup program and the commission
 36-9    on or before the 30th day after good faith negotiations have begun:
36-10                (1)  the person or the commission may withdraw from the
36-11    negotiations; and
36-12                (2)  the commission retains the person's application
36-13    fee.
36-14          (e)  The commission may not initiate an enforcement action
36-15    against a person who is in compliance with this section for the
36-16    contamination or release that is the subject of the voluntary
36-17    cleanup agreement or for activity that resulted in the
36-18    contamination or release.
36-19          Sec. 91.656.  TERMINATION OF AGREEMENT; COST RECOVERY. (a)
36-20    The commission or the person in its sole discretion may terminate
36-21    the agreement by giving 15 days' advance written notice to the
36-22    other.  Only those costs incurred or obligated by the commission
36-23    before notice of termination of the agreement are recoverable under
36-24    the agreement if the agreement is terminated.
36-25          (b)  Termination of the agreement does not affect any right
36-26    the commission has under other law to recover costs.
36-27          (c)  If the person does not pay to the commission the state's
 37-1    costs associated with the voluntary cleanup before the 31st day
 37-2    after the date the person receives notice that the costs are due
 37-3    and owing, the attorney general, at the request of the commission,
 37-4    shall bring an action in the name of the state in Travis County to
 37-5    recover the amount owed and reasonable legal expenses, including
 37-6    attorney's fees, witness costs, court costs, and deposition costs.
 37-7          Sec. 91.657.  VOLUNTARY CLEANUP WORK PLANS AND REPORTS. (a)
 37-8    After signing a voluntary cleanup agreement, the person shall
 37-9    prepare and submit the appropriate work plans and reports to the
37-10    commission.
37-11          (b)  The commission shall review and evaluate the work plans
37-12    and reports for accuracy, quality, and completeness.  The
37-13    commission may approve a voluntary cleanup work plan or report or,
37-14    if a work plan or report is not approved, notify the person
37-15    concerning additional information or commitments needed to obtain
37-16    approval.
37-17          (c)  At any time during the evaluation of a work plan or
37-18    report, the commission may request the person to submit additional
37-19    or corrected information.
37-20          (d)  After considering future land use, the commission may
37-21    approve work plans and reports submitted under this section that do
37-22    not require removal or remedy of all discharges, releases, and
37-23    threatened releases at a site if the partial response actions for
37-24    the property:
37-25                (1)  will be completed in a manner that protects human
37-26    health and the environment;
37-27                (2)  will not cause, contribute, or exacerbate
 38-1    discharges, releases, or threatened releases that are not required
 38-2    to be removed or remedied under the work plan; and
 38-3                (3)  will not interfere with or substantially increase
 38-4    the cost of response actions to address the remaining discharges,
 38-5    releases, or threatened releases.
 38-6          Sec. 91.658.  CERTIFICATE OF COMPLETION. (a)  If the
 38-7    commission determines that a person has successfully completed a
 38-8    voluntary cleanup approved under this subchapter, the commission
 38-9    shall certify that the action has been completed by issuing the
38-10    person a certificate of completion.
38-11          (b)  The certificate of completion must:
38-12                (1)  acknowledge the protection from liability provided
38-13    by Section 91.659;
38-14                (2)  indicate the proposed future land use; and
38-15                (3)  include a legal description of the site and the
38-16    name of the site's surface and mineral owner and mineral operator
38-17    at the time the application to participate in the voluntary cleanup
38-18    program was filed.
38-19          (c)  If the commission determines that the person has not
38-20    successfully completed a voluntary cleanup approved under this
38-21    subchapter, the commission shall notify of this determination the
38-22    person who undertook the voluntary cleanup and the current surface
38-23    and mineral owner and mineral operator of the site that is the
38-24    subject of the cleanup.
38-25          Sec. 91.659.  PERSONS RELEASED FROM LIABILITY. (a)  A person
38-26    who is not a responsible person under Section 91.113 at the time
38-27    the person applies to perform a voluntary cleanup:
 39-1                (1)  does not become a responsible person solely
 39-2    because the person signs the application; and
 39-3                (2)  is released, on certification under Section
 39-4    91.658, from all liability to the state for cleanup of areas of the
 39-5    site covered by the certification, except for releases and
 39-6    consequences that the person causes.
 39-7          (b)  A person who is not a responsible person under Section
 39-8    91.113 at the time the commission issues a certificate of
 39-9    completion under Section 91.658 is released, on issuance of the
39-10    certificate, from all liability to the state for cleanup of areas
39-11    of the site covered by the certificate, except for releases and
39-12    consequences that the person causes.
39-13          (c)  The release from liability provided by this section does
39-14    not apply to a person who:
39-15                (1)  caused or contributed to the contamination at the
39-16    site covered by the certificate;
39-17                (2)  acquires a certificate of completion by fraud,
39-18    misrepresentation, or knowing failure to disclose material
39-19    information;
39-20                (3)  knows at the time the person acquires an interest
39-21    in the site for which the certificate of completion was issued that
39-22    the certificate was acquired in a manner provided by Subdivision
39-23    (2); or
39-24                (4)  changes land use from the use specified in the
39-25    certificate of completion if the new use may result in increased
39-26    risks to human health or the environment.
39-27          Sec. 91.660.  PERMIT NOT REQUIRED. (a)  A state or local
 40-1    permit is not required for removal or remedial action conducted on
 40-2    a site as part of a voluntary cleanup under this subchapter.  A
 40-3    person shall coordinate a voluntary cleanup with ongoing federal
 40-4    and state hazardous waste programs.
 40-5          (b)  The commission by rule shall require that the person
 40-6    conducting the voluntary cleanup comply with any federal or state
 40-7    standard, requirement, criterion, or limitation to which the
 40-8    remedial action would otherwise be subject if a permit were
 40-9    required.
40-10          SECTION 26. Sections 113.011, 113.014, 113.015, 113.0511, and
40-11    113.082, Natural Resources Code, are amended to read as follows:
40-12          Sec. 113.011.  REGULATION OF LIQUEFIED PETROLEUM GAS
40-13    ACTIVITIES. The commission shall administer and enforce the laws of
40-14    this state and the rules and standards of the commission relating
40-15    to liquefied petroleum gas [DIVISION.  There is created and
40-16    organized a separate and distinct division of the commission known
40-17    as the liquefied petroleum gas division or the LPG division].
40-18          Sec. 113.014.  EMPLOYEES. Sufficient employees shall be
40-19    provided [to the LPG division] for the enforcement of this chapter.
40-20          Sec. 113.015.  FUNDS FOR FINANCING REGULATION OF LPG
40-21    ACTIVITIES [DIVISION]. The commission shall look only to the
40-22    revenue derived from the operation of this chapter and appropriated
40-23    by the legislature for expenses of regulating [conducting the]
40-24    liquefied petroleum gas activities [division] and administering
40-25    this chapter.  [The LPG examination fund is established in the
40-26    state treasury to be used to pay the costs of training, including
40-27    examinations, seminars, and continuing education programs,
 41-1    administered or sponsored by the commission pursuant to Sections
 41-2    113.087 and 113.088 of this code.  All fees collected pursuant to
 41-3    Sections 113.088 and 113.090(c) of this code relating to training
 41-4    or registration for qualification to perform LPG-related activities
 41-5    shall be credited to this fund.  There is hereby appropriated from
 41-6    the fund to the commission all such fees collected.]
 41-7          Sec. 113.0511.  LIMITATIONS ON RULEMAKING AUTHORITY. (a)  The
 41-8    commission may not adopt rules restricting advertising or
 41-9    competitive bidding [or advertising] by a licensee [person
41-10    regulated by the commission] except to prohibit false, misleading,
41-11    or deceptive practices [by the person].
41-12          (b)  In its [The commission may not include in any] rules to
41-13    prohibit false, misleading, or deceptive practices, the commission
41-14    may not include [by a person regulated by the commission] a rule
41-15    that:
41-16                (1)  restricts the [person's] use of any medium for
41-17    advertising;
41-18                (2)  restricts the use of a licensee's [person's]
41-19    personal appearance or [use of his] voice in an advertisement;
41-20                (3)  relates to the size or duration of an
41-21    advertisement by the licensee [person]; or
41-22                (4)  restricts the licensee's [person's] advertisement
41-23    under a trade name.
41-24          Sec. 113.082.  CATEGORIES OF LPG ACTIVITIES [LICENSEE]; FEES.
41-25    (a)  A prospective licensee in LPG may apply to the commission [LPG
41-26    division] for a license to engage in any one or more of the
41-27    following categories of LPG activities:
 42-1                (1) [(A)]  container manufacturers/fabricators:  the
 42-2    manufacture, fabrication, assembly, repair, installation,
 42-3    subframing, testing, and sale of LPG containers, including LPG
 42-4    motor or mobile fuel containers and systems, and the repair and
 42-5    installation of transport and transfer systems[; and the category
 42-6    "A" application and original license fee is an amount not to exceed
 42-7    $1,000 as determined by the commission; the annual renewal license
 42-8    fee is an amount not to exceed $600 as determined by the
 42-9    commission];
42-10                (2) [(B)]  transport outfitters:  the subframing,
42-11    testing, and sale of LPG transport containers, the testing of LPG
42-12    storage containers, the installation, testing, and sale of LPG
42-13    motor or mobile fuel containers and systems, and the installation
42-14    and repair of transport systems, and motor or mobile fuel systems[;
42-15    the category "B" application and original license fee is an amount
42-16    not to exceed $400 as determined by the commission; the annual
42-17    renewal license fee is an amount not to exceed $200 as determined
42-18    by the commission];
42-19                (3) [(C)]  carriers:  the transportation of LPG by
42-20    transport, including the loading and unloading of LPG, and the
42-21    installation and repair of transport systems[; the category "C"
42-22    application and original license fee is an amount not to exceed
42-23    $1,000 as determined by the commission; the annual renewal license
42-24    fee is an amount not to exceed $300 as determined by the
42-25    commission];
42-26                (4) [(D)]  general installers and repairmen:  the sale,
42-27    service, and installation of containers, excluding motor fuel
 43-1    containers, and the service, installation, and repair of piping,
 43-2    certain appliances as defined by rule, excluding recreational
 43-3    vehicle appliances and LPG systems, excluding motor fuel and
 43-4    recreational vehicle systems[; the category "D" application and
 43-5    original license fee is an amount not to exceed $100 as determined
 43-6    by the commission; the annual renewal license fee is an amount not
 43-7    to exceed $70 as determined by the commission];
 43-8                (5) [(E)]  retail and wholesale dealers:  the storage,
 43-9    sale, transportation, and distribution of LPG at retail and
43-10    wholesale, and all other activities included in this section except
43-11    the manufacture, fabrication, assembly, repair, subframing, and
43-12    testing of LPG containers, and except the sale and installation of
43-13    LPG motor or mobile fuel systems that have an engine with a rating
43-14    of more than 25 horsepower[; the category "E" application and
43-15    original license fee is an amount not to exceed $750 as determined
43-16    by the commission; the annual renewal license fee is an amount not
43-17    to exceed $300 as determined by the commission];
43-18                (6) [(F)]  cylinder filling:  the operation of a
43-19    cylinder-filling facility, including cylinder filling, the sale of
43-20    LPG in cylinders, and the replacement of a cylinder valve[; the
43-21    category "F" application and original license fee is an amount not
43-22    to exceed $100 as determined by the commission; the annual renewal
43-23    license fee is an amount not to exceed $50 as determined by the
43-24    commission];
43-25                (7) [(G)]  service station:  the operation of an LPG
43-26    service station filling ASME containers designed for motor and
43-27    mobile fuel[; the category "G" application and original license fee
 44-1    is an amount not to exceed $100 as determined by the commission;
 44-2    the annual renewal license fee is an amount not to exceed $50 as
 44-3    determined by the commission];
 44-4                (8) [(H)]  cylinder dealers:  the transportation and
 44-5    sale of LPG in cylinders[; the category "H" application and
 44-6    original license fee is an amount not to exceed $1,000 as
 44-7    determined by the commission; the annual renewal license fee is an
 44-8    amount not to exceed $300 as determined by the commission];
 44-9                (9) [(I)]  service station and cylinder filling:  any
44-10    service station and cylinder activity set out in Subdivisions (6)
44-11    and (7) [categories "F" and "G" of this section; the category "I"
44-12    application and original license fee is an amount not to exceed
44-13    $150 as determined by the commission; the annual renewal license
44-14    fee is an amount not to exceed $70 as determined by the
44-15    commission];
44-16                (10) [(J)]  service station and cylinder facilities:
44-17    the operation of a cylinder-filling facility, including cylinder
44-18    filling and the sale, transportation, installation, and connection
44-19    of LPG in cylinders, the replacement of cylinder valves, and the
44-20    operation of an LPG service station as set out in Subdivision (7)
44-21    [category "G"; the category "J" application and original license
44-22    fee is an amount not to exceed $1,000 as determined by the
44-23    commission; the annual renewal license fee is an amount not to
44-24    exceed $300 as determined by the commission];
44-25                (11) [(K)]  distribution system:  the sale and
44-26    distribution of LPG through mains or pipes and the installation and
44-27    repair of LPG systems[; the category "K" application and original
 45-1    license fee is an amount not to exceed $1,000 as determined by the
 45-2    commission; the annual renewal license fee is an amount not to
 45-3    exceed $300 as determined by the commission];
 45-4                (12) [(L)]  engine fuel:  the sale and installation of
 45-5    LPG motor or mobile fuel containers, and the sale and installation
 45-6    of LPG motor or mobile fuel systems[; the category "L" application
 45-7    and original license fee is an amount not to exceed $100 as
 45-8    determined by the commission; the annual renewal license fee is an
 45-9    amount not to exceed $50 as determined by the commission];
45-10                (13) [(M)]  recreational vehicle installers and
45-11    repairmen: the sale, service, and installation of recreational
45-12    vehicle containers, and the installation, repair, and service of
45-13    recreational vehicle appliances, piping, and LPG systems, including
45-14    recreational vehicle motor or mobile fuel systems and containers[;
45-15    the category "M" application and original license fee is an amount
45-16    not to exceed $100 as determined by the commission; the annual
45-17    renewal license fee is an amount not to exceed $70 as determined by
45-18    the commission];
45-19                (14) [(N)]  manufactured housing installers and
45-20    repairmen: the service and installation of containers that supply
45-21    fuel to manufactured housing, and the installation, repair, and
45-22    service of appliances and piping systems for manufactured housing[;
45-23    the category "N" application and original license fee is an amount
45-24    not to exceed $100 as determined by the commission; the annual
45-25    renewal license fee is an amount not to exceed $70 as determined by
45-26    the commission];
45-27                (15) [(O)]  testing laboratory:  the testing of an
 46-1    LP-gas container, LP-gas motor fuel systems or mobile fuel systems,
 46-2    transfer systems, and transport systems for the purpose of
 46-3    determining the safety of the container or systems for LP-gas
 46-4    service, including the necessary installation, disconnection,
 46-5    reconnecting, testing, and repair of LPG motor fuel systems or
 46-6    mobile fuel systems, transfer systems, and transport systems
 46-7    involved in the testing of containers; [the category "O"
 46-8    application and original license fee is an amount not to exceed
 46-9    $400 as determined by the commission; the annual renewal license
46-10    fee is an amount not to exceed $100 as determined by the
46-11    commission;] or
46-12                (16) [(P)]  portable cylinder exchange:  the operation
46-13    of a portable cylinder exchange service, where the sale of LP-gas
46-14    is within a portable cylinder with an LP-gas capacity not to exceed
46-15    21 pounds; the portable cylinders are not filled on site, and no
46-16    other LP-gas activity requiring a license is conducted[; the
46-17    category "P" application and original license fee is an amount not
46-18    to exceed $100 as determined by the commission; the annual renewal
46-19    license fee is an amount not to exceed $50 as determined by the
46-20    commission].
46-21          (b)  The commission by rule shall establish reasonable
46-22    application and original license fees and renewal fees for each
46-23    type of license listed in this section.
46-24          SECTION 27. Subsections (b) and (c), Section 113.084, Natural
46-25    Resources Code, are amended to read as follows:
46-26          (b)  A prospective licensee shall submit the required
46-27    application together with the original nonrefundable license fee
 47-1    established by the commission under [required by] Section 113.082
 47-2    [of this code] for each type of license [category] for which an [a
 47-3    license] application is made.  The applicant shall submit
 47-4    additional information and data with each application as the
 47-5    commission may reasonably require.
 47-6          (c)  A licensee shall submit the nonrefundable renewal fee
 47-7    for each type of [category for which] license [is] sought along
 47-8    with information and data the commission may reasonably require.
 47-9          SECTION 28. Section 113.087, Natural Resources Code, is
47-10    amended by amending Subsections (b), (c), and (i) through (m) and
47-11    adding Subsections (n) and (o) to read as follows:
47-12          (b)  Before license issuance, the commission shall require
47-13    the individual designated as the licensee's representative to the
47-14    commission to provide good and sufficient proof through examination
47-15    prepared and administered by the commission of working knowledge of
47-16    this chapter and rules of the commission which affect the type
47-17    [category] of license for which application is made.  Thereafter,
47-18    each licensee shall maintain a qualified representative at all
47-19    times.
47-20          (c)  Each individual who will be actively supervising those
47-21    operations requiring any license under this chapter at any outlet
47-22    or location, as designated by the commission, shall be required to
47-23    provide good and sufficient proof through examination prepared and
47-24    administered by the commission that the supervisor has a working
47-25    knowledge of the safety requirements and penalties in this chapter
47-26    and the rules of the commission which apply to that type [category]
47-27    of license.
 48-1          (i)  Not later than the 30th day after the date a person
 48-2    takes a licensing [on which an] examination [is administered] under
 48-3    this chapter [section], the commission shall notify the person
 48-4    [each examinee] of the results of the examination.
 48-5          (j)  If the examination is graded or reviewed by a testing
 48-6    service:
 48-7                (1)  the commission shall notify the person of the
 48-8    results of the examination not later than the 14th day after the
 48-9    date the commission receives the results from the testing service;
48-10    and
48-11                (2)  if notice of the examination results will be
48-12    delayed for longer than 90 days after the examination date, the
48-13    commission shall notify the person [examinee] of the reason for the
48-14    delay before the 90th day.
48-15          (k)  The commission may require a testing service to notify a
48-16    person of the results of the person's examination.
48-17          (l) [(j)]  If requested in writing by a person who fails a
48-18    [the] licensing examination administered under this chapter
48-19    [section], the commission shall furnish the person with an analysis
48-20    of the person's performance on the examination.
48-21          (m) [(k)]  The commission, by appropriate rule, shall [may]
48-22    require, in addition to examination requirements as set out in
48-23    Subsections (b), (c), and (d) of this section:
48-24                (1)  an examination for technical competence that is
48-25    validated by a recognized educational testing organization or
48-26    similar organization; or
48-27                (2)  attendance at approved academic, trade,
 49-1    professional, or commission-sponsored seminars, other continuing
 49-2    education programs, and periodic reexaminations.
 49-3          (n) [(l)]  Prior to qualifying an individual to perform
 49-4    LP-gas work, the commission may establish by rule an initial course
 49-5    of instruction for any person who has not yet passed the [category
 49-6    of] examination for the LPG activity for which the person seeks
 49-7    qualification; for any person who has not maintained qualified
 49-8    status, as defined by rule; and for any person whose certification
 49-9    has been revoked pursuant to Subchapter F of this code.  If an
49-10    initial course of instruction is established by the commission, it
49-11    shall be available at least once every 180 [90] days.
49-12          (o) [(m)]  The commission by rule may exempt from any
49-13    provision of this section:
49-14                (1)  a journeyman or master plumber licensed by the
49-15    Texas State Board of Plumbing Examiners;
49-16                (2)  a person licensed under the Air Conditioning and
49-17    Refrigeration Contractor License Law (Article 8861, Vernon's Texas
49-18    Civil Statutes); or
49-19                (3)  company representatives, operations supervisors,
49-20    or employees of a testing laboratory that was registered under
49-21    Section 113.135 prior to the effective date of this subsection.
49-22          SECTION 29. Subsections (a) and (c), Section 113.089, Natural
49-23    Resources Code, are amended to read as follows:
49-24          (a)  If application is made for a license under [category "E"
49-25    of] Section 113.082(a)(5) [113.082 of this code] or for any other
49-26    type of license [category] specified by commission rule, the
49-27    commission, in addition to other requirements, shall have an actual
 50-1    inspection conducted of any and all facilities, bulk storage
 50-2    equipment, transportation equipment, and dispensing equipment of
 50-3    the applicant to verify satisfactory compliance with all current
 50-4    safety laws, rules, and practices.  The inspection may be waived by
 50-5    the commission on an application resulting solely from a change in
 50-6    legal entities under which a current licensee operates.
 50-7          (c)  A [category "E"] license under Section 113.082(a)(5) and
 50-8    any other type of license specified by commission rule shall not be
 50-9    issued until the inspection under Subsection (a) of this section
50-10    verifies the applicant to be in satisfactory compliance with all
50-11    current safety laws, rules, and practices.
50-12          SECTION 30. Subsections (a) and (b), Section 113.090, Natural
50-13    Resources Code, are amended to read as follows:
50-14          (a)  The commission by rule may establish reasonable fees for
50-15    the review of site applications [examination of plans and
50-16    specifications] related to the installation of containers when site
50-17    applications [plans and specifications] are reviewed by the
50-18    commission before such installation is placed into LP-gas service.
50-19          (b)  The commission by rule may establish reasonable fees for
50-20    recording the location of containers at public buildings and
50-21    commercial installations when prior approval of site applications
50-22    [plans and specifications] is not required.
50-23          SECTION 31. Subsections (b), (c), and (d), Section 113.091,
50-24    Natural Resources Code, are amended to read as follows:
50-25          (b)  Within 30 days of the notice of denial, an applicant for
50-26    license under this chapter who is denied a license may request a
50-27    hearing to determine whether or not the applicant has complied in
 51-1    all respects with the licensing procedure applicable to each type
 51-2    [the category or categories] of license sought.  The applicant's
 51-3    request for hearing must be in writing and delivered to the
 51-4    commission [director of the LP-gas division].
 51-5          (c)  A hearing to determine an applicant's compliance with
 51-6    the licensing procedure applicable to each type [the category or
 51-7    categories] of license sought must be scheduled within 30 days
 51-8    following receipt of a request under Subsection (b) of this
 51-9    section.
51-10          (d)  If the record made at the hearing supports the
51-11    applicant's claim, the commission shall enter an order in its
51-12    records to that effect, noting each type of license to [the
51-13    category or categories for] which the applicant is found entitled
51-14    [to be licensed], and the commission shall have the license or
51-15    licenses issued.  If the applicant is found unqualified, the
51-16    commission shall likewise enter an order in its records to that
51-17    effect, and no license may be issued to the applicant.
51-18          SECTION 32. Section 113.093, Natural Resources Code, is
51-19    amended to read as follows:
51-20          Sec. 113.093.  LICENSE RENEWAL. (a)  A person who is
51-21    otherwise eligible to renew a license may renew an unexpired
51-22    license by paying the required [issued pursuant to this chapter is
51-23    renewable on the timely payment or tender of the] renewal [license]
51-24    fee to the commission before the expiration date of the license
51-25    [each year].  A person whose license has expired may not engage in
51-26    activities that require a license until the license has been
51-27    renewed.
 52-1          (b)  A person whose [If a person's] license has been expired
 52-2    for [not longer than] 90 days or less[, the person] may renew the
 52-3    license by paying to the commission a [the required] renewal fee
 52-4    that is equal to 1-1/2 times the normally required [and a fee that
 52-5    is one-half of the amount of the] renewal fee [for the license].
 52-6          (c)  A person whose [If a person's] license has been expired
 52-7    for more [longer] than 90 days but less than one year [two years,
 52-8    the person] may renew the license by paying to the commission a
 52-9    [all unpaid] renewal [fees and a] fee that is equal to two times
52-10    the normally required [the amount of the unpaid] renewal fee [fees
52-11    for the license].
52-12          (d)  A person whose [If a person's] license has been expired
52-13    for one year [two years] or more [longer, the person] may not renew
52-14    the license.  The person may obtain a new license by complying with
52-15    the requirements and procedures, including the examination
52-16    requirements, for obtaining an original license.
52-17          (e)  A person who was licensed in this state, moved to
52-18    another state, and is currently licensed and has been in practice
52-19    in the other state for the two years preceding the date of
52-20    application may obtain a new license without reexamination.  The
52-21    person must pay to the commission a fee that is equal to two times
52-22    the normally required renewal fee for the license.
52-23          (f)  Not later than the 30th day before the date a person's
52-24    license is scheduled to expire, the commission shall send written
52-25    notice of the impending expiration to the person at the person's
52-26    last known address according to the records of the commission.
52-27          (g)  A renewal license will be issued to a licensee as soon
 53-1    as is practicable after compliance with this section, and
 53-2    fulfillment of insurance, examination, and seminar requirements
 53-3    established by this chapter, and submission of any information and
 53-4    data the commission may reasonably require.
 53-5          (h) [(f)]  Renewal [license] fees shall be nonrefundable.
 53-6          [(g)  At least 15 days before the expiration of a person's
 53-7    license the commission shall notify the person in writing of the
 53-8    impending license expiration and shall attempt to obtain from the
 53-9    person a signed receipt confirming receipt of the notice.]
53-10          SECTION 33. Subchapter D, Chapter 113, Natural Resources
53-11    Code, is amended by adding Section 113.096 to read as follows:
53-12          Sec. 113.096.  PROVISIONAL LICENSE. (a)  The commission may
53-13    issue a provisional license to an applicant currently licensed in
53-14    another jurisdiction who seeks a license in this state and who:
53-15                (1)  has been licensed in good standing for at least
53-16    two years in another jurisdiction, including a foreign country,
53-17    that has licensing requirements substantially equivalent to the
53-18    requirements of this chapter;
53-19                (2)  has passed a national or other examination
53-20    recognized by the commission relating to the activities regulated
53-21    under this chapter; and
53-22                (3)  is sponsored by a person licensed by the
53-23    commission under this chapter with whom the provisional license
53-24    holder will practice during the time the person holds a provisional
53-25    license.
53-26          (b)  The commission may waive the requirement of Subsection
53-27    (a)(3) for an applicant if the commission determines that
 54-1    compliance with that subsection would be a hardship to the
 54-2    applicant.
 54-3          (c)  A provisional license is valid until the date the
 54-4    commission approves or denies the provisional license holder's
 54-5    application for a license.  The commission shall issue a license
 54-6    under this chapter to the provisional license holder if:
 54-7                (1)  the provisional license holder is eligible to be
 54-8    licensed under Section 113.095; or
 54-9                (2)  the provisional license holder:
54-10                      (A)  passes the part of the examination under
54-11    Section 113.087 that relates to the applicant's knowledge and
54-12    understanding of the laws and rules relating to the activities
54-13    regulated under this chapter in this state;
54-14                      (B)  meets the academic and experience
54-15    requirements for a license under this chapter; and
54-16                      (C)  satisfies any other licensing requirements
54-17    under this chapter.
54-18          (d)  The commission must approve or deny a provisional
54-19    license holder's application for a license not later than the 180th
54-20    day after the date the provisional license is issued.  The
54-21    commission may extend the 180-day period if the results of an
54-22    examination have not been received by the commission before the end
54-23    of that period.
54-24          (e)  The commission may establish a fee for provisional
54-25    licenses in an amount reasonable and necessary to cover the cost of
54-26    issuing the license.
54-27          SECTION 34. Subsections (d) and (h), Section 113.097, Natural
 55-1    Resources Code, are amended to read as follows:
 55-2          (d)  Each [category "C," "E," "H," or "J"] licensee under
 55-3    Section 113.082(a)(3), (5), (8), or (10) must carry motor vehicle
 55-4    bodily injury and property damage liability coverage on each motor
 55-5    vehicle, including trailers and semitrailers, used to transport
 55-6    LP-gas.  The commission shall establish by rule a reasonable amount
 55-7    of coverage to be maintained, except that coverage shall not be
 55-8    less than the amounts required as evidence of financial
 55-9    responsibility under Chapter 601, Transportation Code.
55-10          (h)  As required by commission rule, a [category "A," "B,"
55-11    "C," "E," or "O"] licensee under Section 113.082(a)(1), (2), (3),
55-12    (5), or (15) must carry completed operations or products liability
55-13    insurance, or both, in a reasonable amount, based on the type or
55-14    types of licensed activities.
55-15          SECTION 35. Subsections (a) and (c), Section 113.098, Natural
55-16    Resources Code, are amended to read as follows:
55-17          (a)  As evidence that required insurance has been secured and
55-18    is in force, certificates of insurance which are approved by the
55-19    commission [division] shall be filed with the commission [division]
55-20    before licensing, license renewal, and during the entire period
55-21    that the license is in effect.  Any document filed with the
55-22    commission [division] in a timely manner which is not completed in
55-23    accordance with the instructions indicated on the insurance
55-24    certificate forms supplied by the commission [division], but which
55-25    complies with the substantive requirements of this section and with
55-26    the rules adopted under this section may be considered by the
55-27    commission [division] to be evidence that required insurance has
 56-1    been secured and is in force for a temporary period not to exceed
 56-2    45 days.  During this temporary period, a licensee shall file with
 56-3    the commission [division] an amended certificate of insurance which
 56-4    complies with all procedural and substantive requirements of this
 56-5    section and the rules adopted hereunder.
 56-6          (c)  Cancellation of a certificate of insurance becomes
 56-7    effective on the occurrence of any of the following events and not
 56-8    before:
 56-9                (1)  commission [division] receipt of written notice
56-10    stating the insurer's intent to cancel a policy of insurance and
56-11    the passage of time equivalent to the notice period required by law
56-12    to be given the insured before the insurance cancellation;
56-13                (2)  receipt by the commission [division] of an
56-14    acceptable replacement insurance certificate;
56-15                (3)  voluntary surrender of a license and the rights
56-16    and privileges conferred by the license;
56-17                (4)  commission [division] receipt of a statement made
56-18    by a licensee stating that the licensee is not actively engaging in
56-19    any operations which require a particular type of insurance and
56-20    will not engage in those operations unless and until all
56-21    certificates of required insurance applicable to those operations
56-22    are filed with the commission [division]; or
56-23                (5)  written order of commission.
56-24          SECTION 36. Subsections (a)-(d), Section 113.099, Natural
56-25    Resources Code, are amended to read as follows:
56-26          (a)  A [category "C," "E," "H," or "J"] licensee or an
56-27    applicant for a license under Section 113.082(a)(3), (5), (8), or
 57-1    (10) that does not operate or contemplate the operation of a motor
 57-2    vehicle equipped with an LP-gas cargo container and does not
 57-3    transport or contemplate the transportation of LP-gas by vehicle in
 57-4    any manner, may make and file with the commission [division] a
 57-5    statement to that effect in lieu of filing a certificate of motor
 57-6    vehicle bodily injury and property damage insurance.
 57-7          (b)  A licensee or an applicant for a license that does not
 57-8    engage in or contemplate engaging in any operations which would be
 57-9    covered by general liability insurance for a period of time may
57-10    make and file with the commission [division] a statement to that
57-11    effect in lieu of filing a certificate of general liability
57-12    insurance.
57-13          (c)  A licensee or an applicant for a license that does not
57-14    employ or contemplate the hiring of an employee or employees to be
57-15    engaged in LPG-related activities in this state may make and file
57-16    with the commission [division] a statement to that effect in lieu
57-17    of filing evidence of coverage of workers' compensation or other
57-18    alternative form of coverage as provided in this subchapter.
57-19          (d)  A [category "A," "B," "C," "E," or "O"] licensee or an
57-20    applicant for a license under Section 113.082(a)(1), (2), (3), (5),
57-21    or (15) that does not engage in or contemplate engaging in any
57-22    LP-gas operations which would be covered by completed operations or
57-23    products liability insurance, or both, for a period of time may
57-24    make and file with the commission [division] a statement to that
57-25    effect in lieu of filing a certificate of insurance.
57-26          SECTION 37. The heading to Subchapter F, Chapter 113, Natural
57-27    Resources Code, is amended to read as follows:
 58-1            SUBCHAPTER F.  DISCIPLINARY ACTION [SUSPENSION AND
 58-2                 REVOCATION OF LICENSES AND REGISTRATIONS]
 58-3          SECTION 38. Subsection (e), Section 113.161, Natural
 58-4    Resources Code, is amended to read as follows:
 58-5          (e)  If the commission [or division] determines that the
 58-6    probable violation or noncompliance constitutes an immediate danger
 58-7    to the public health, safety, and welfare, it shall require the
 58-8    immediate cessation of the probable violation or noncompliance and
 58-9    proceed with a hearing as provided in Section 113.162 [of this
58-10    code].
58-11          SECTION 39. Section 113.163, Natural Resources Code, is
58-12    amended to read as follows:
58-13          Sec. 113.163.  FINDINGS AND JUDGMENT. (a)  The [If the]
58-14    commission shall revoke, suspend, or refuse to renew a license or
58-15    registration or shall reprimand a licensee or registrant if the
58-16    commission finds that the licensee or registrant has violated or
58-17    failed to comply with or is violating or failing to comply with
58-18    this chapter or a rule or standard promulgated and adopted under
58-19    this chapter[, or both, the commission may suspend the license or
58-20    registration for a definite period not to exceed 90 days or may
58-21    revoke the license or registration.  If the commission determines
58-22    that no violation has occurred or is occurring, its order shall so
58-23    state.  Whenever a license or registration is revoked by order of
58-24    the commission, a new license or registration shall not be issued
58-25    for at least 90 days from the effective date of the order.  Such
58-26    time period shall be stated in the order].
58-27          (b)  The commission may place on probation a person whose
 59-1    license or registration is [has been] suspended.  If a license or
 59-2    registration suspension is probated, the commission may require the
 59-3    person:
 59-4                (1)  to report regularly to the commission on matters
 59-5    that are the basis of the probation;
 59-6                (2)  to limit practice to the areas prescribed by the
 59-7    commission; or
 59-8                (3)  to continue or review professional education until
 59-9    the person attains a degree of skill satisfactory to the commission
59-10    in those areas that are the basis of the [under Subsection (a) of
59-11    this section for a definite period not to exceed one year, but if
59-12    the commission does place the licensee or registrant on probation
59-13    and does allow him to continue to operate, the fact that the
59-14    license or registration has been suspended and the licensee or
59-15    registrant has been put on probation shall appear in the records of
59-16    the commission relating to the suspension and] probation.
59-17          SECTION 40. Subsection (b), Section 113.233, Natural
59-18    Resources Code, is amended to read as follows:
59-19          (b)  Any authorized representative of the commission [LP-Gas
59-20    Division] may enter any buildings or premises where an accident has
59-21    occurred in which LP-gas was a probable cause for purposes of
59-22    investigating the cause, origin, and circumstances of such
59-23    accident.  The commission [LP-Gas Division] may request that any
59-24    state or local authority having jurisdiction take appropriate
59-25    action, to the extent permitted by law, as may be necessary for
59-26    preservation of property and premises.
59-27          SECTION 41. Subsection (b), Section 113.243, Natural
 60-1    Resources Code, as amended by Section 2, Chapter 496, Acts of the
 60-2    75th Legislature, Regular Session, 1997, is amended to read as
 60-3    follows:
 60-4          (b)  The fund consists of money from:
 60-5                (1)  fees charged under this subchapter;
 60-6                (2)  the penalties for the late payment of the fee
 60-7    charged under this subchapter;
 60-8                (3)  gifts, grants, or other assistance received by the
 60-9    commission from any source for the purposes of this subchapter;
60-10                (4)  interest earned on amounts in the fund;
60-11                (5)  amounts collected by the commission under an
60-12    agreement with another state in accordance with Section 113.246(e);
60-13    [and]
60-14                (6)  assessments, rebates on assessments, and other
60-15    money collected by the commission under the Propane Education and
60-16    Research Act of 1996 (15 U.S.C. Section 6401 et seq.) or other
60-17    applicable federal law; and
60-18                (7)  fees, royalties, or other things of value received
60-19    from the items described by Subsections (f)(1)(A)-(D).
60-20          SECTION 42. Section 113.243, Natural Resources Code, is
60-21    amended by amending Subsections (c) and (d) and adding Subsections
60-22    (f) and (g) to read as follows:
60-23          (c)  The fund may be used only by the commission to pay for
60-24    activities relating to the specific fuel from which the fee,
60-25    royalty, or other thing of value was derived or the specific fuel,
60-26    if any, for which the gift, grant, or other assistance is given,
60-27    including direct and indirect costs relating to:
 61-1                (1)  researching all possible uses of LPG and other
 61-2    environmentally beneficial alternative fuels to enhance air
 61-3    quality;
 61-4                (2)  researching, developing, and implementing
 61-5    marketing, advertising, and informational programs relating to
 61-6    alternative fuels to make alternative fuels more understandable and
 61-7    readily available to consumers;
 61-8                (3)  developing and implementing conservation and
 61-9    distribution plans to minimize the frequency and severity of
61-10    disruptions in the supply of alternative fuels;
61-11                (4)  developing a public information plan that will
61-12    provide advisory services relating to alternative fuels to
61-13    consumers;
61-14                (5)  developing voluntary participation plans to
61-15    promote the use of alternative fuels by federal, state, and local
61-16    agencies;
61-17                (6)  implementing consumer incentive or rebate programs
61-18    developed pursuant to Section 113.2435 of this subchapter;
61-19                (7)  other functions the commission determines are
61-20    necessary to add a program established by the commission for the
61-21    purpose of promoting the use of LPG or other environmentally
61-22    beneficial alternative fuels; and
61-23                (8)  the administrative costs incurred by the
61-24    commission under this subchapter.
61-25          (d)  If a specific fee, royalty, gift, grant, other thing of
61-26    value, or other assistance is designated for or collected from
61-27    discrete components of the alternative fuels industry, the fee,
 62-1    royalty, gift, grant, other thing of value, or other assistance
 62-2    shall be deposited in a separate account in the fund.
 62-3          (f)  The commission may:
 62-4                (1)  apply for, register, secure, hold, and protect
 62-5    under the laws of a state, the United States, or a foreign country
 62-6    a patent, copyright, trademark, or other evidence of protection or
 62-7    exclusivity issued for an idea, publication, or other original
 62-8    innovation fixed in a tangible medium, including:
 62-9                      (A)  a logo;
62-10                      (B)  a service mark;
62-11                      (C)  a study;
62-12                      (D)  an engineering, architectural, or graphic
62-13    design;
62-14                      (E)  a manual;
62-15                      (F)  automated systems software;
62-16                      (G)  an audiovisual work; or
62-17                      (H)  a sound recording;
62-18                (2)  enter into a license agreement with a third party
62-19    in return for a fee, royalty, or other thing of value; and
62-20                (3)  waive or reduce the amount of a fee, royalty, or
62-21    other thing of value to be assessed if the commission determines
62-22    that the waiver will:
62-23                      (A)  further the goals and missions of the
62-24    commission's division responsible for alternative fuels research
62-25    and education; and
62-26                      (B)  result in a net benefit to the state.
62-27          (g)  Money received under Subsection (f) shall be deposited
 63-1    in a separate account in the fund as provided by Subsection (d),
 63-2    except that any money received by the commission from the items
 63-3    described by Subsections (f)(1)(E)-(H) shall be deposited in the
 63-4    general revenue fund.
 63-5          SECTION 43. Subchapter J, Chapter 113, Natural Resources
 63-6    Code, as added by Chapter 80, Acts of the 73rd Legislature, Regular
 63-7    Session, 1993, is redesignated as Subchapter K, and the heading to
 63-8    that subchapter is amended to read as follows:
 63-9              SUBCHAPTER K [J].  LIABILITY OF LICENSE HOLDER
63-10          SECTION 44. Chapter 113, Natural Resources Code, is amended
63-11    by adding Subchapter L to read as follows:
63-12                 SUBCHAPTER L.  TESTING OF LP-GAS SYSTEMS
63-13                           IN SCHOOL FACILITIES
63-14          Sec. 113.351.  DEFINITIONS. In this subchapter:
63-15                (1)  "School district" means:
63-16                      (A)  an entity created under the laws of this
63-17    state and accredited by the Texas Education Agency under Subchapter
63-18    D, Chapter 39, Education Code; or
63-19                      (B)  a private school, other than a resident
63-20    school, approved by the Texas Education Agency under Section
63-21    132.056, Education Code.
63-22                (2)  "Supplier" means an individual or company that
63-23    sells and delivers liquefied petroleum gas to a school district
63-24    facility.  If more than one individual or company sells and
63-25    delivers LP-gas to a facility of a school district, each individual
63-26    or company is a supplier for purposes of this subchapter.
63-27          Sec. 113.352.  DUTY TO TEST FOR LEAKAGE. (a)  Each school
 64-1    district shall perform pressure tests for leakage on the LP-gas
 64-2    piping system in each school district facility at least biennially.
 64-3    The tests must be performed before the beginning of the school
 64-4    year.
 64-5          (b)  The school district may perform the pressure tests on a
 64-6    two-year cycle under which the tests are performed for the LP-gas
 64-7    piping systems of approximately one-half of the facilities each
 64-8    year.
 64-9          (c)  If a school district operates one or more school
64-10    district facilities on a year-round calendar, the pressure test in
64-11    each of those facilities must be conducted and reported not later
64-12    than July 1 of the year in which the test is performed.
64-13          (d)  A test performed under a municipal code satisfies the
64-14    pressure testing requirements prescribed by this section.
64-15          Sec. 113.353.  REQUIREMENTS OF TEST. (a)  The school district
64-16    shall perform the pressure test to determine whether the LP-gas
64-17    piping system holds at least the amount of pressure specified by
64-18    the National Fire Protection Association 54, National Fuel Gas
64-19    Code.
64-20          (b)  The pressure test must be conducted in accordance with
64-21    National Fire Protection Association 54.
64-22          (c)  At the request of a school district, the commission
64-23    shall assist the district in providing for the certification of an
64-24    employee of the school district or school, as applicable, to
64-25    conduct the test and in developing a procedure for conducting the
64-26    test.
64-27          Sec. 113.354.  NOTICE OF TEST. (a)  A school district shall
 65-1    provide written notice to the commission specifying the date and
 65-2    the result of each pressure test or other inspection of the LP-gas
 65-3    piping system.
 65-4          (b)  Before the introduction of any LP-gas into the LP-gas
 65-5    piping system, the school district shall provide verification to
 65-6    the district's supplier that the piping has been tested in
 65-7    accordance with this subchapter.
 65-8          (c)  The commission shall maintain a copy of the notice
 65-9    provided under Subsection (a)  until at least the first anniversary
65-10    of the date the commission received the notice.
65-11          Sec. 113.355.  TERMINATION OF SERVICE. A supplier shall
65-12    terminate service to a school district facility if:
65-13                (1)  the supplier receives official notification from
65-14    the firm or individual conducting the test of a hazardous leakage
65-15    in the facility LP-gas piping system; or
65-16                (2)  a test at the facility is not performed as
65-17    required by this subchapter.
65-18          Sec. 113.356.  REPORT TO BOARD OF TRUSTEES. An identified
65-19    LP-gas leakage in a school district facility shall be reported to
65-20    the board of trustees of the district in which the facility is
65-21    located.
65-22          Sec. 113.357.  ENFORCEMENT. The  commission shall enforce
65-23    this subchapter.
65-24          SECTION 45. Subchapter B, Chapter 116, Natural Resources
65-25    Code, is amended by adding Section 116.016 to read as follows:
65-26          Sec. 116.016.  LIMITATIONS ON RULEMAKING AUTHORITY. (a)  The
65-27    commission may not adopt rules restricting advertising or
 66-1    competitive bidding by a licensee or registrant except to prohibit
 66-2    false, misleading, or deceptive practices.
 66-3          (b)  In its rules to prohibit false, misleading, or deceptive
 66-4    practices, the commission may not include a rule that:
 66-5                (1)  restricts the use of any medium for advertising;
 66-6                (2)  restricts the use of a licensee or registrant's
 66-7    personal appearance or voice in an advertisement;
 66-8                (3)  relates to the size or duration of an
 66-9    advertisement by the licensee or registrant; or
66-10                (4)  restricts the licensee or registrant's
66-11    advertisement under a trade name.
66-12          SECTION 46. Subsection (b), Section 116.032, Natural
66-13    Resources Code, is amended to read as follows:
66-14          (b)  The commission by rule may establish reasonable fees for
66-15    each category of license.  [A license fee may not exceed $1,000.]
66-16          SECTION 47. Section 116.033, Natural Resources Code, is
66-17    amended to read as follows:
66-18          Sec. 116.033.  APPLICATION AND RENEWAL PROCEDURES. (a)  The
66-19    commission shall adopt rules establishing procedures for submitting
66-20    and processing applications for issuance and renewal of licenses
66-21    and for registration.
66-22          (b)  A person who is otherwise eligible to renew a license or
66-23    registration may renew an unexpired license or registration by
66-24    paying the required renewal fee to the commission before the
66-25    expiration date of the license or registration.  A person whose
66-26    license or registration has expired may not engage in activities
66-27    that require a license or registration until the license or
 67-1    registration has been renewed.
 67-2          (c)  A person whose license or registration has been expired
 67-3    for 90 days or less may renew the license or registration by paying
 67-4    to the commission a renewal fee that is equal to 1-1/2 times the
 67-5    normally required renewal fee.
 67-6          (d)  A person whose license or registration has been expired
 67-7    for more than 90 days but less than one year may renew the license
 67-8    or registration by paying to the commission a renewal fee that is
 67-9    equal to two times the normally required renewal fee.
67-10          (e)  A person whose license or registration has been expired
67-11    for one year or more may not renew the license or registration. The
67-12    person may obtain a new license or registration by complying with
67-13    the requirements and procedures, including the examination
67-14    requirements, for obtaining an original license or registration.
67-15          (f)  A person who was licensed or registered in this state,
67-16    moved to another state, and is currently licensed or registered and
67-17    has been in practice in the other state for the two years preceding
67-18    the date of application may obtain a new license or registration
67-19    without reexamination.  The person must pay to the commission a fee
67-20    that is equal to two times the normally required renewal fee for
67-21    the license or registration.
67-22          (g)  Not later than the 30th day before the date a person's
67-23    license or registration is scheduled to expire, the commission
67-24    shall send written notice of the impending expiration to the person
67-25    at the person's last known address according to the records of the
67-26    commission.
67-27          SECTION 48. Section 116.034, Natural Resources Code, is
 68-1    amended by adding Subsections (d)-(h) to read as follows:
 68-2          (d)  Not later than the 30th day after the date a person
 68-3    takes a licensing or registration examination under this chapter,
 68-4    the commission shall notify the person of the results of the
 68-5    examination.
 68-6          (e)  If the examination is graded or reviewed by a testing
 68-7    service:
 68-8                (1)  the commission shall notify the person of the
 68-9    results of the examination not later than the 14th day after the
68-10    date the commission receives the results from the testing service;
68-11    and
68-12                (2)  if notice of the examination results will be
68-13    delayed for longer than 90 days after the examination date, the
68-14    commission shall notify the person of the reason for the delay
68-15    before the 90th day.
68-16          (f)  The commission may require a testing service to notify a
68-17    person of the results of the person's examination.
68-18          (g)  If requested in writing by a person who fails a
68-19    licensing or registration examination administered under this
68-20    chapter, the commission shall furnish the person with an analysis
68-21    of the person's performance on the examination.
68-22          (h)  The commission shall recognize, prepare, or administer
68-23    continuing education programs for its licensees and registrants.  A
68-24    licensee or registrant must participate in the programs to the
68-25    extent required by the commission to keep the person's license.
68-26          SECTION 49. Subchapter C, Chapter 116, Natural Resources
68-27    Code, is amended by adding Sections 116.0345 and 116.0346 to read
 69-1    as follows:
 69-2          Sec. 116.0345.  LICENSE OR REGISTRATION BY ENDORSEMENT. The
 69-3    commission may waive any prerequisite to obtaining a license or
 69-4    registration for an applicant after reviewing the applicant's
 69-5    credentials and determining that the applicant holds a license or
 69-6    registration issued by another jurisdiction that has licensing
 69-7    requirements substantially equivalent to those of this state.
 69-8          Sec. 116.0346.  PROVISIONAL LICENSE OR REGISTRATION. (a)  The
 69-9    commission may issue a provisional license or registration to an
69-10    applicant currently licensed or registered in another jurisdiction
69-11    who seeks a license or registration in this state and who:
69-12                (1)  has been licensed or registered in good standing
69-13    for at least two years in another jurisdiction, including a foreign
69-14    country, that has licensing or registration requirements
69-15    substantially equivalent to the requirements of this chapter;
69-16                (2)  has passed a national or other examination
69-17    recognized by the commission relating to the activities regulated
69-18    under this chapter; and
69-19                (3)  is sponsored by a person licensed or registered by
69-20    the commission under this chapter with whom the provisional license
69-21    or registration holder will practice during the time the person
69-22    holds a provisional license or registration.
69-23          (b)  The commission may waive the requirement of Subsection
69-24    (a)(3) for an applicant if the commission determines that
69-25    compliance with that subsection would be a hardship to the
69-26    applicant.
69-27          (c)  A provisional license or registration is valid until the
 70-1    date the commission approves or denies the provisional license or
 70-2    registration holder's application for a license or registration.
 70-3    The commission shall issue a license or registration under this
 70-4    chapter to the provisional license or registration holder if:
 70-5                (1)  the provisional license or registration holder is
 70-6    eligible to be licensed or registered under Section 116.0345; or
 70-7                (2)  the provisional license or registration holder:
 70-8                      (A)  passes the part of the examination under
 70-9    Section 116.034 that relates to the applicant's knowledge and
70-10    understanding of the laws and rules relating to the activities
70-11    regulated under this chapter in this state;
70-12                      (B)  meets the academic and experience
70-13    requirements for a license or registration under this chapter; and
70-14                      (C)  satisfies any other licensing or
70-15    registration requirements under this chapter.
70-16          (d)  The commission must approve or deny a provisional
70-17    license or registration holder's application for a license or
70-18    registration not later than the 180th day after the date the
70-19    provisional license or registration is issued.  The commission may
70-20    extend the 180-day period if the results of an examination have not
70-21    been received by the commission before the end of that period.
70-22          (e)  The commission may establish a fee for provisional
70-23    licenses or registrations in an amount reasonable and necessary to
70-24    cover the cost of issuing the license or registration.
70-25          SECTION 50. The heading to Section 116.037, Natural Resources
70-26    Code, is amended to read as follows:
70-27          Sec. 116.037.  DISCIPLINARY ACTION [SUSPENSION AND REVOCATION
 71-1    OF LICENSE].
 71-2          SECTION 51. Section 116.037, Natural Resources Code, is
 71-3    amended by amending Subsections (f) and (g) and adding Subsection
 71-4    (h) to read as follows:
 71-5          (f)  The [If the] commission shall revoke, suspend, or refuse
 71-6    to renew a license or registration or shall reprimand the licensee
 71-7    or registrant if the commission finds that the licensee or
 71-8    registrant has violated or failed to comply with or is violating or
 71-9    failing to comply with this chapter or a rule adopted under this
71-10    chapter[, the commission may suspend the license or registration
71-11    for a definite period not to exceed 90 days or may revoke the
71-12    license].
71-13          (g)  The commission may place on probation a person whose
71-14    license or registration is suspended.  If a license or registration
71-15    suspension is probated, the commission may require the person:
71-16                (1)  to report regularly to the commission on matters
71-17    that are the basis of the probation;
71-18                (2)  to limit practice to the areas prescribed by the
71-19    commission; or
71-20                (3)  to continue or review professional education until
71-21    the person attains a degree of skill satisfactory to the commission
71-22    in those areas that are the basis of the probation.
71-23          (h)  Any party to a proceeding before the commission is
71-24    entitled to judicial review under the substantial evidence rule.
71-25          SECTION 52. Section 117.012, Natural Resources Code, is
71-26    amended by adding Subsections (h)-(k) to read as follows:
71-27          (h)  The commission shall require operators or their
 72-1    designated representatives to communicate and conduct liaison
 72-2    activities with fire, police, and other appropriate public
 72-3    emergency response officials.  The liaison activities must be
 72-4    conducted by meetings in person except as provided by this section.
 72-5    An operator or the operator's representative may conduct required
 72-6    community liaison activities as provided by Subsection (i) only if
 72-7    the operator or the operator's representative has made the
 72-8    following efforts to conduct a community liaison meeting in person
 72-9    with the officials:
72-10                (1)  mailing a written request for a meeting in person
72-11    to the appropriate officials by certified mail, return receipt
72-12    requested;
72-13                (2)  sending a request for a meeting in person to the
72-14    appropriate officials by facsimile transmission; and
72-15                (3)  making one or more telephone calls or e-mail
72-16    message transmissions to the appropriate officials to request a
72-17    meeting in person.
72-18          (i)  If the operator or operator's representative cannot
72-19    arrange a meeting in person after complying with Subsection (h),
72-20    the operator or the operator's representative shall make the
72-21    following efforts to conduct community liaison activities by means
72-22    of a telephone conference call with the officials:
72-23                (1)  mailing a written request for a telephone
72-24    conference to the appropriate officials by certified mail, return
72-25    receipt requested;
72-26                (2)  sending a request for a telephone conference to
72-27    the appropriate officials by facsimile transmission; and
 73-1                (3)  making one or more telephone calls or e-mail
 73-2    message transmissions to the appropriate officials to request a
 73-3    telephone conference.
 73-4          (j)  If the operator or the operator's representative has
 73-5    made the efforts required by Subsections (h) and (i) but has not
 73-6    successfully arranged a meeting in person or a telephone
 73-7    conference, the community liaison information required to be
 73-8    conveyed may be delivered by mailing the information by certified
 73-9    mail, return receipt requested.
73-10          (k)  The commission by rule shall require the owner or
73-11    operator of each interstate or intrastate hazardous liquid or
73-12    carbon dioxide pipeline facility any part of which is located
73-13    within 1,000 feet of a public school to:
73-14                (1)  develop an emergency response plan in consultation
73-15    with the fire department in whose jurisdiction the school is
73-16    located or another local emergency response entity; and
73-17                (2)  present the plan:
73-18                      (A)  at the first annual budget meeting of the
73-19    board of trustees of the school district in which the school is
73-20    located after the plan is developed; and
73-21                      (B)  at subsequent annual budget meetings of the
73-22    board of trustees of the school district on the request of the
73-23    board.
73-24          SECTION 53. Subtitle D, Title 3, Natural Resources Code, is
73-25    amended by adding Chapter 118 to read as follows:
73-26               CHAPTER 118.  PIPELINE ASSESSMENT AND TESTING
73-27          Sec. 118.001.  AUTHORITY TO REQUIRE PLAN FOR PIPELINE
 74-1    ASSESSMENT OR TESTING. (a)  The Railroad Commission of Texas by
 74-2    rule may require an operator to file for commission approval a plan
 74-3    for assessment or testing of a pipeline if the commission finds
 74-4    that:
 74-5                (1)  there is reason to believe that the pipeline may
 74-6    present a hazard to public health or safety;
 74-7                (2)  the commission lacks adequate information to
 74-8    assess the risk to public health or safety presented by the
 74-9    pipeline; or
74-10                (3)  a plan is necessary for the commission to initiate
74-11    or complete a pipeline safety investigation.
74-12          (b)  The Railroad Commission of Texas may take enforcement
74-13    action against a person who fails to:
74-14                (1)  submit a required plan; or
74-15                (2)  participate in a pipeline safety investigation.
74-16          Sec. 118.002.  PIPELINES FOR WHICH PLAN MAY BE REQUIRED. The
74-17    rules adopted under this chapter may apply to interstate pipelines,
74-18    intrastate pipelines, portions of pipeline systems the regulation
74-19    of which the federal government has temporarily delegated to the
74-20    Railroad Commission of Texas, or gathering lines, and to pipelines
74-21    for the transportation of any substance or material under the
74-22    jurisdiction of the commission, as specified by the commission.
74-23          Sec. 118.003.  CONTENTS OF PLAN. The rules adopted under this
74-24    chapter may require that a plan include:
74-25                (1)  an identification of risk factors associated with
74-26    a pipeline system, including population density;
74-27                (2)  information about previous inspections and
 75-1    maintenance;
 75-2                (3)  information about pressure tests;
 75-3                (4)  information about leaks;
 75-4                (5)  information about operating characteristics;
 75-5                (6)  information about corrosion protection methods;
 75-6    and
 75-7                (7)  other information that may assist the Railroad
 75-8    Commission of Texas in assessing the risk to public health or
 75-9    safety presented by the pipeline.
75-10          Sec. 118.004.  APPROVAL OF PLAN. The Railroad Commission of
75-11    Texas may approve a plan that complies with rules adopted under
75-12    this chapter.
75-13          Sec. 118.005.  CONSEQUENCES OF PLAN APPROVAL. The approval of
75-14    a plan by the Railroad Commission of Texas does not constitute a
75-15    certification or representation that the pipeline is in compliance
75-16    with or exempt from applicable safety standards.
75-17          SECTION 54. Subsection (b), Section 101.002, Utilities Code,
75-18    is amended to read as follows:
75-19          (b)  Gas utilities may be [are by definition] monopolies in
75-20    the areas they serve.  As a result, the normal forces of
75-21    competition that regulate prices in a free enterprise society may
75-22    [do] not operate.  Public agencies regulate utility rates,
75-23    operations, and services as a substitute for competition.
75-24          SECTION 55. Subsection (d), Section 101.052, Utilities Code,
75-25    is amended to read as follows:
75-26          (d)  The appearance of the counsellor in a proceeding does
75-27    not preclude the appearance of other parties on behalf of
 76-1    residential consumers.  The counsellor may [not] be grouped with
 76-2    any other party representing residential consumers.
 76-3          SECTION 56. Section 102.001, Utilities Code, is amended to
 76-4    read as follows:
 76-5          Sec. 102.001.  RAILROAD COMMISSION JURISDICTION. (a)  The
 76-6    railroad commission has exclusive original jurisdiction over the
 76-7    rates and services of a gas utility:
 76-8                (1)  that distributes [distributing] natural gas or
 76-9    synthetic natural gas in:
76-10                      (A)  areas outside a municipality; and
76-11                      (B)  areas inside a municipality that surrenders
76-12    its jurisdiction to the railroad commission under Section 103.003;
76-13    and
76-14                (2)  [.  The railroad commission also has exclusive
76-15    original jurisdiction over the rates and services of a gas utility]
76-16    that transmits, transports, delivers, or sells natural gas or
76-17    synthetic natural gas to a gas utility that distributes the gas to
76-18    the public.
76-19          (b)  The railroad commission has exclusive appellate
76-20    jurisdiction to review an order or ordinance of a municipality
76-21    exercising exclusive original jurisdiction as provided by this
76-22    subtitle.
76-23          SECTION 57. Subchapter A, Chapter 102, Utilities Code, is
76-24    amended by adding Section 102.006 to read as follows:
76-25          Sec. 102.006.  POWERS AND DUTIES OF STATE OFFICE OF
76-26    ADMINISTRATIVE HEARINGS. (a)  The utility division of the State
76-27    Office of Administrative Hearings shall conduct each hearing in a
 77-1    contested case that is not conducted by one or more members of the
 77-2    railroad commission.  A hearing must be conducted in accordance
 77-3    with the rules and procedures adopted by the railroad commission. A
 77-4    court reporter appointed by the railroad commission shall
 77-5    transcribe each hearing.
 77-6          (b)  The railroad commission may delegate to the utility
 77-7    division of the State Office of Administrative Hearings the
 77-8    authority to make a final decision and to issue findings of fact,
 77-9    conclusions of law, and other necessary orders in a proceeding in
77-10    which there is not a contested issue of fact or law.
77-11          (c)  The railroad commission by rule shall define the
77-12    procedures by which it delegates final decision-making authority
77-13    under Subsection (b).
77-14          (d)  For purposes of judicial review, an administrative law
77-15    judge's final decision under Subsection (b) has the same effect as
77-16    a final decision of the railroad commission unless a member of the
77-17    commission requests formal review of the decision.
77-18          SECTION 58. Section 103.001, Utilities Code, is amended to
77-19    read as follows:
77-20          Sec. 103.001.  MUNICIPAL JURISDICTION. To provide fair, just,
77-21    and reasonable rates and adequate and efficient services, the
77-22    governing body of a municipality has exclusive original
77-23    jurisdiction over the rates, operations, and services of a gas
77-24    utility within the municipality, subject to the limitations imposed
77-25    by this subtitle, unless the municipality surrenders its
77-26    jurisdiction to the railroad commission under Section 103.003.
77-27          SECTION 59. Subchapter A, Chapter 103, Utilities Code, is
 78-1    amended by adding Section 103.003 to read as follows:
 78-2          Sec. 103.003.  SURRENDER OF MUNICIPAL JURISDICTION TO
 78-3    RAILROAD COMMISSION; REINSTATEMENT OF JURISDICTION. (a)  A
 78-4    municipality may elect to have the railroad commission exercise
 78-5    exclusive original jurisdiction over gas utility rates, operations,
 78-6    and services in the municipality by ordinance or by submitting the
 78-7    question of the surrender of its jurisdiction to the voters at a
 78-8    municipal election.
 78-9          (b)  The governing body of a municipality shall submit at a
78-10    municipal election the question of surrendering its jurisdiction to
78-11    the railroad commission if the governing body receives a petition
78-12    signed by a number of qualified voters of the municipality equal to
78-13    at least the lesser of 20,000 or 10 percent of the number of voters
78-14    voting in the last preceding general election in the municipality.
78-15          (c)  A municipality may not elect to surrender its
78-16    jurisdiction while a case involving the municipality is pending
78-17    before the railroad commission.
78-18          (d)  A municipality that surrenders its jurisdiction to the
78-19    railroad commission may reinstate its jurisdiction.  The provisions
78-20    of this section governing the surrender of jurisdiction apply to
78-21    the reinstatement of jurisdiction.
78-22          SECTION 60. Section 104.003, Utilities Code, is amended by
78-23    adding Subsection (f) to read as follows:
78-24          (f)  A capital cost or gas purchase expense is just and
78-25    reasonable if the capital cost or gas purchase expense is within
78-26    the range of costs and expenses that would be incurred by a prudent
78-27    manager at the time and under the circumstances existing at the
 79-1    time the decision to incur the capital cost or gas purchase expense
 79-2    was made.
 79-3          SECTION 61.  Section 104.107, Utilities Code, is amended by
 79-4    amending Subsection (b) and adding Subsection (c) to read as
 79-5    follows:
 79-6          (b)  The 150-day period prescribed by Subsection (a)(2) shall
 79-7    be extended for two days for each day the actual hearing on the
 79-8    merits of the case exceeds 15 days.
 79-9          (c)  If the regulatory authority does not make a final
79-10    determination concerning a schedule of rates before expiration of
79-11    the applicable suspension period, the regulatory authority is
79-12    considered to have approved the schedule.  This approval is subject
79-13    to the authority of the regulatory authority thereafter to continue
79-14    a hearing in progress.
79-15          SECTION 62. Subchapter F, Chapter 104, Utilities Code, is
79-16    amended by adding Section 104.2551 to read as follows:
79-17          Sec. 104.2551.  ELECTRONIC BILLING. A gas utility or
79-18    municipally owned utility may transmit the utility's bill for
79-19    services through the Internet or by other electronic means instead
79-20    of through the United States mail on the request of a customer of
79-21    the gas utility or municipally owned utility.
79-22          SECTION 63. Section 121.103, Utilities Code, is amended by
79-23    amending Subsection (a) and adding Subsection (d) to read as
79-24    follows:
79-25          (a)  A gas utility that provides gas to a customer does not
79-26    have an obligation to serve the customer or to maintain the gas
79-27    supply or physical capacity to serve the customer if the customer:
 80-1                (1)  is a transportation, industrial, commercial, or
 80-2    other similar large-volume contract customer;
 80-3                (2)  is an end-use customer of the gas utility;
 80-4                (3)  reduces or ceases the purchase of natural gas or
 80-5    natural gas service from the gas utility; and
 80-6                (4)  purchases natural gas or natural gas service from
 80-7    another supplier or purchases an alternate form of energy.
 80-8          (d)  Notwithstanding Subsection (a), a gas utility that has
 80-9    provided gas to a commercial customer is obligated to serve that
80-10    customer if the gas utility has a sufficient gas supply and
80-11    physical capacity to do so without reducing service to its other
80-12    customers.
80-13          SECTION 64. Section 121.2015, Utilities Code, is amended to
80-14    read as follows:
80-15          Sec. 121.2015.  REQUIRED SAFETY RULES. (a)  The railroad
80-16    commission shall adopt rules regarding:
80-17                (1)  public education and awareness relating to gas
80-18    pipeline facilities; and
80-19                (2)  community liaison for responding to an emergency
80-20    relating to a gas pipeline facility.
80-21          (b)  The railroad commission shall require operators or their
80-22    designated representatives to communicate and conduct liaison
80-23    activities with fire, police, and other appropriate public
80-24    emergency response officials.  The liaison activities must be
80-25    conducted by meetings in person except as provided by this section.
80-26    An operator or the operator's representative may conduct required
80-27    community liaison activities as provided by Subsection (c) only if
 81-1    the operator or the operator's representative has made the
 81-2    following efforts to conduct a community liaison meeting in person
 81-3    with the officials:
 81-4                (1)  mailing a written request for a meeting in person
 81-5    to the appropriate officials by certified mail, return receipt
 81-6    requested;
 81-7                (2)  sending a request for a meeting in person to the
 81-8    appropriate officials by facsimile transmission; and
 81-9                (3)  making one or more telephone calls or e-mail
81-10    message transmissions to the appropriate officials to request a
81-11    meeting in person.
81-12          (c)  If the operator or operator's representative cannot
81-13    arrange a meeting in person after complying with Subsection (b),
81-14    the operator or the operator's representative shall make the
81-15    following efforts to conduct community liaison activities by means
81-16    of a telephone conference call with the officials:
81-17                (1)  mailing a written request for a telephone
81-18    conference to the appropriate officials by certified mail, return
81-19    receipt requested;
81-20                (2)  sending a request for a telephone conference to
81-21    the appropriate officials by facsimile transmission; and
81-22                (3)  making one or more telephone calls or e-mail
81-23    message transmissions to the appropriate officials to request a
81-24    telephone conference.
81-25          (d)  If the operator or the operator's representative has
81-26    made the efforts required by Subsections (b) and (c) but has not
81-27    successfully arranged a meeting in person or a telephone
 82-1    conference, the community liaison information required to be
 82-2    conveyed may be delivered by mailing the information by certified
 82-3    mail, return receipt requested.
 82-4          SECTION 65. Section 121.206, Utilities Code, is amended by
 82-5    amending Subsection (c) and adding Subsection (d) to read as
 82-6    follows:
 82-7          (c)  In determining the amount of the penalty, the railroad
 82-8    commission shall consider the guidelines adopted under Subsection
 82-9    (d).
82-10          (d)  The railroad commission by rule shall adopt guidelines
82-11    to be used in determining the amount of a penalty under this
82-12    subchapter.  The guidelines shall include a penalty calculation
82-13    worksheet that specifies the typical penalty for certain
82-14    violations, circumstances justifying enhancement of a penalty and
82-15    the amount of the enhancement, and circumstances justifying a
82-16    reduction in a penalty and the amount of the reduction.  The
82-17    guidelines shall take into account:
82-18                (1)  the person's history of previous violations of
82-19    Section 121.201 or a safety standard or rule relating to the
82-20    transportation of gas and gas pipeline facilities adopted under
82-21    that section, including the number of previous violations;
82-22                (2)  the seriousness of the violation and of any
82-23    pollution resulting from the violation; [and]
82-24                (3)  any hazard to the health or safety of the public;
82-25                (4)  the degree of culpability;
82-26                (5)  the demonstrated good faith of the person charged;
82-27    and
 83-1                (6)  any other factor the commission considers
 83-2    relevant.
 83-3          SECTION 66. Subchapter C, Chapter 2003, Government Code, is
 83-4    amended by adding Section 2003.0491 to read as follows:
 83-5          Sec. 2003.0491.  RAILROAD COMMISSION HEARINGS. The utility
 83-6    division shall conduct contested case hearings and may make final
 83-7    decisions and issue findings of fact, conclusions of law, and other
 83-8    necessary orders in other proceedings on behalf of the Railroad
 83-9    Commission of Texas as provided by Section 102.006, Utilities Code.
83-10    Section 2003.049 applies to a proceeding under this section except
83-11    as otherwise provided by Section 102.006, Utilities Code.
83-12          SECTION 67. The following laws are repealed:
83-13                (1)  Chapter 93, Natural Resources Code;
83-14                (2)  Subdivision (2), Section 113.002, and Sections
83-15    113.012 and 113.013, Natural Resources Code;
83-16                (3)  Subsection (b), Section 113.243, Natural Resources
83-17    Code, as amended by Section 1, Chapter 496, Acts of the 75th
83-18    Legislature, Regular Session, 1997; and
83-19                (4)  Section 113.246, Natural Resources Code, as
83-20    amended by Section 6, Chapter 496, Acts of the 75th Legislature,
83-21    Regular Session, 1997.
83-22          SECTION 68. (a)  Except as otherwise provided by this Act,
83-23    this Act takes effect September 1, 2001.
83-24          (b)  The changes in law made by this Act relating to the
83-25    statutory lien on wells apply only to liens on wells for which the
83-26    Railroad Commission of Texas sends a notice under Section 89.043,
83-27    Natural Resources Code, as amended by this Act, on or after the
 84-1    effective date of this Act. Liens on wells for which notice is sent
 84-2    before the effective date of this Act are covered by the law as it
 84-3    existed when the notice was sent, and that law is continued in
 84-4    effect for that purpose.
 84-5          (c)  As soon as practicable on or after the effective date of
 84-6    this Act, the governor, lieutenant governor, and speaker of the
 84-7    house of representatives shall appoint members to the Oil-Field
 84-8    Cleanup Fund Advisory Committee as provided by Section 91.1135,
 84-9    Natural Resources Code, as added by this Act.
84-10          (d)  Subchapter L, Chapter 113, Natural Resources Code, as
84-11    added by this Act, applies beginning with the 2001-2002 school
84-12    year, and each school district that uses liquefied petroleum gas
84-13    shall perform pressure tests as required by that subchapter.
84-14          (e)  Section 102.006, Utilities Code, as added by this Act,
84-15    and Section 2003.0491, Government Code, as added by this Act, apply
84-16    only to a contested case filed at the Railroad Commission of Texas
84-17    on or after the effective date of this Act.  A contested case filed
84-18    at the commission before that date is governed by the law in effect
84-19    at the time the case is filed, and the former law is continued in
84-20    effect for that purpose.