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.