By:  Shapiro                                           S.B. No. 910
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of aggregate quarries; providing for an
 1-3     administrative penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Title 4, Natural Resources Code, is amended by
 1-6     adding Chapter 135 to read as follows:
 1-7              CHAPTER 135.  AGGREGATE QUARRYING AND RECLAMATION
 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-9           Sec. 135.001.  SHORT TITLE.  This chapter may be cited as the
1-10     Texas Aggregate Quarrying and Reclamation Act.
1-11           Sec. 135.002.  DEFINITIONS.  In this chapter:
1-12                 (1)  "Commission," "operator," "owner," "pit,"
1-13     "quarrying," "quarry," and "site" have the meanings assigned those
1-14     terms by Section 133.003.
1-15                 (2)  "Certificate holder" means a person who holds a
1-16     certificate of registration issued under this chapter.
1-17                 (3)  "Land affected" means:
1-18                       (A)  the area from which any materials are to be
1-19     or have been displaced in a quarrying operation;
1-20                       (B)  the area on which any materials that are
1-21     displaced are to be or have been deposited;
1-22                       (C)  the haul roads and impoundment basins within
1-23     the quarrying area; and
1-24                       (D)  other land whose natural state has been or
1-25     will be disturbed as a result of the quarrying operations.
 2-1           Sec. 135.003.  EXEMPTIONS.  This chapter does not apply to:
 2-2                 (1)  land under the jurisdiction of the General Land
 2-3     Office; or
 2-4                 (2)  a parcel of land of less than five acres.
 2-5           Sec. 135.004.  RULES AND ORDERS.  The commission may adopt
 2-6     rules and issue orders as necessary to implement and enforce this
 2-7     chapter.
 2-8              (Sections 135.005-135.050 reserved for expansion
 2-9                 SUBCHAPTER B.  CERTIFICATE OF REGISTRATION
2-10           Sec. 135.051.  CERTIFICATE OF REGISTRATION REQUIRED.  A
2-11     person may not conduct a quarrying operation in this state unless
2-12     the person holds a certificate of registration for that operation
2-13     issued by the commission under this chapter.
2-14           Sec. 135.052.  APPLICATION.  (a)  To obtain a certificate of
2-15     registration, a person must file an application for a certificate
2-16     of registration with the commission on a concise form prescribed by
2-17     the commission, accompanied by a fee of $200.
2-18           (b)  The application must include:
2-19                 (1)  the name, address, and telephone number of the
2-20     operator;
2-21                 (2)  the name, address, and telephone number of each
2-22     owner of the site of the proposed quarry who is not the operator;
2-23                 (3)  the type of aggregate extraction and production
2-24     activities to be conducted on the site of the proposed quarry,
2-25     including an estimate of the number of acres of land to be
2-26     disturbed annually for quarrying purposes;
 3-1                 (4)  a legal description of the land on which the
 3-2     quarry is to be located;
 3-3                 (5)  a map of the site of the proposed quarry showing
 3-4     any easement, public or private road, or right-of-way; and
 3-5                 (6)  a statement that the operator has the legal right
 3-6     to quarry the land described.
 3-7           (c)  A separate application is required for each quarrying
 3-8     operation.  The commission by rule shall specify criteria for
 3-9     determining whether a quarrying operation constitutes a separate
3-10     operation for which a separate application is required.
3-11           Sec. 135.053.  ISSUANCE OF CERTIFICATE.  (a)  Not later than
3-12     the 30th day after the date the commission receives a completed
3-13     application and the application fee, the commission shall:
3-14                 (1)  issue a certificate of registration to the
3-15     applicant entitling the applicant to engage in aggregate quarrying
3-16     operations on the land described in the application; or
3-17                 (2)  provide the applicant a written statement
3-18     explaining the reason for denial of the certificate.
3-19           (b)  The commission may not give public notice or hold a
3-20     public hearing before issuing a certificate of registration.
3-21           Sec. 135.054.  TERM OF CERTIFICATE.  A certificate of
3-22     registration is valid for the life of the quarry for which it is
3-23     issued.
3-24           Sec. 135.055.  TRANSFER OF CERTIFICATE.  (a)  An operator
3-25     must provide written notice to the commission at least 15 days
3-26     before the date the operator transfers a certificate of
 4-1     registration.  The notice must include the name of the person to
 4-2     whom the operator proposes to transfer the certificate.
 4-3           (b)  An operator may transfer a certificate of registration
 4-4     on or after the 15th day after the date the operator provides
 4-5     notice under Subsection (a) unless the commission notifies the
 4-6     operator that the transfer is disapproved before that day.
 4-7           Sec. 135.056.  AMENDMENT OF CERTIFICATE.  (a)  On
 4-8     application, the commission may amend a certificate of registration
 4-9     to cover additional land that is in the immediate vicinity of the
4-10     quarry for which the certificate was issued, including land that is
4-11     not contiguous to the quarry.
4-12           (b)  An application for an amended certificate of
4-13     registration must describe:
4-14                 (1)  the additional land to be covered by the
4-15     certificate; and
4-16                 (2)  the quarrying operations to be conducted on the
4-17     land.
4-18           (c)  The filing of an application to amend a certificate of
4-19     registration does not affect the authority granted under the
4-20     certificate of which amendment is sought.
4-21              (Sections 135.057-135.100 reserved for expansion
4-22               SUBCHAPTER C.  CONDUCT OF QUARRYING OPERATIONS
4-23           Sec. 135.101.  DISTANCE OF PIT PERIMETER FROM PROPERTY LINE.
4-24     A pit perimeter must be located at least:
4-25                 (1)  50 feet from the nearest property line if the
4-26     slope has a horizontal to vertical ratio of at least two to one; or
 5-1                 (2)  100 feet from the nearest property line if the
 5-2     slope is vertical and has a height of at least 10 feet.
 5-3              (Sections 135.102-135.150 reserved for expansion
 5-4                    SUBCHAPTER D.  ADMINISTRATIVE PENALTY
 5-5           Sec. 135.151.  IMPOSITION OF PENALTY.  The commission shall
 5-6     impose an administrative penalty on an owner or operator of a
 5-7     quarrying operation who violates this chapter or a rule adopted or
 5-8     order issued under this chapter.
 5-9           Sec. 135.152.  AMOUNT OF PENALTY.  (a)  The amount of the
5-10     penalty is $500, except that the penalty for a violation of Section
5-11     135.101 is determined by the commission in an amount of not less
5-12     than $500 and not more than $5,000.
5-13           (b)  The amount of the penalty for a violation of Section
5-14     135.101 shall be based on:
5-15                 (1)  the seriousness of the violation, including the
5-16     nature, circumstances, extent, and gravity of the violation;
5-17                 (2)  the economic harm to property or the environment
5-18     caused by the violation;
5-19                 (3)  the history of previous violations;
5-20                 (4)  the amount necessary to deter a future violation;
5-21                 (5)  efforts to correct the violation; and
5-22                 (6)  any other matter that justice may require.
5-23           Sec. 135.153.  NOTICE OF VIOLATION AND PENALTY.  (a)  If,
5-24     after investigation of a possible violation and the facts
5-25     surrounding that possible violation, the commission determines that
5-26     a violation has occurred, the commission shall give written notice
 6-1     of the violation to the person alleged to have committed the
 6-2     violation.
 6-3           (b)  The notice must:
 6-4                 (1)  include a brief summary of the alleged violation;
 6-5                 (2)  state the amount of the proposed administrative
 6-6     penalty; and
 6-7                 (3)  inform the person of the person's right to a
 6-8     hearing on the occurrence of the violation, the amount of the
 6-9     penalty, or both.
6-10           Sec. 135.154.  PENALTY TO BE PAID OR HEARING REQUESTED.  (a)
6-11     Not later than the 20th day after the date the person receives the
6-12     notice, the person in writing may:
6-13                 (1)  accept the determination and the proposed
6-14     administrative penalty; or
6-15                 (2)  make a request for a hearing on the occurrence of
6-16     the violation, the amount of the penalty, or both.
6-17           (b)  If the person accepts the determination and proposed
6-18     penalty, the commission by order shall approve the determination
6-19     and impose the proposed penalty.
6-20           Sec. 135.155.  HEARING.  (a)  If the person requests a
6-21     hearing or fails to respond in a timely manner to the notice, the
6-22     commission shall set a hearing and give written notice of the
6-23     hearing to the person.  The commission may employ a hearings
6-24     officer to hold the hearing.
6-25           (b)  The hearings officer shall make findings of fact and
6-26     conclusions of law and promptly issue to the commission a proposal
 7-1     for a decision about the occurrence of the violation and the amount
 7-2     of a proposed penalty.
 7-3           Sec. 135.156.  DECISION BY COMMISSION.  (a)  Based on the
 7-4     findings of fact, conclusions of law, and proposal for a decision,
 7-5     the commission by order may:
 7-6                 (1)  find that a violation occurred and impose a
 7-7     penalty; or
 7-8                 (2)  find that a violation did not occur.
 7-9           (b)  The notice of the commission's order given to the person
7-10     must include a statement of the right of the person to judicial
7-11     review of the order.
7-12           Sec. 135.157.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL.
7-13     Not later than the 30th day after the date the commission's order
7-14     becomes final, the person shall:
7-15                 (1)  pay the penalty; or
7-16                 (2)  file a petition for judicial review contesting the
7-17     occurrence of the violation, the amount of the penalty, or both.
7-18           Sec. 135.158.  STAY OF ENFORCEMENT OF PENALTY.  (a)  Within
7-19     the 30-day period prescribed by Section 135.157, a person who files
7-20     a petition for judicial review may:
7-21                 (1)  stay enforcement of the penalty by:
7-22                       (A)  paying the penalty to the court for
7-23     placement in an escrow account; or
7-24                       (B)  giving the court a supersedeas bond approved
7-25     by the court that:
7-26                             (i)  is for the amount of the penalty; and
 8-1                             (ii)  is effective until all judicial
 8-2     review of the commission's order is final; or
 8-3                 (2)  request the court to stay enforcement of the
 8-4     penalty by:
 8-5                       (A)  filing with the court a sworn affidavit of
 8-6     the person stating that the person is financially unable to pay the
 8-7     penalty and is financially unable to give the supersedeas bond; and
 8-8                       (B)  giving a copy of the affidavit to the
 8-9     commission by certified mail.
8-10           (b)  If the commission receives a copy of an affidavit under
8-11     Subsection (a)(2), the commission may file with the court, within
8-12     five days after the date the copy is received, a contest to the
8-13     affidavit.  The court shall hold a hearing on the facts alleged in
8-14     the affidavit as soon as practicable and shall stay the enforcement
8-15     of the penalty on finding that the alleged facts are true.  The
8-16     person who files an affidavit has the burden of proving that the
8-17     person is financially unable to pay the penalty and to give a
8-18     supersedeas bond.
8-19           Sec. 135.159.  COLLECTION OF PENALTY.  (a)  If the person
8-20     does not pay the penalty and the enforcement of the penalty is not
8-21     stayed, the penalty may be collected.
8-22           (b)  The attorney general may sue to collect the penalty.
8-23           Sec. 135.160.  DECISION BY COURT.  (a)  If the court sustains
8-24     the finding that a violation occurred, the court may uphold or
8-25     reduce the amount of the penalty and order the person to pay the
8-26     full or reduced amount of the penalty.
 9-1           (b)  If the court does not sustain the finding that a
 9-2     violation occurred, the court shall order that a penalty is not
 9-3     owed.
 9-4           Sec. 135.161.  REMITTANCE OF PENALTY AND INTEREST.  (a)  If
 9-5     the person paid the penalty and if the amount of the penalty is
 9-6     reduced or the penalty is not upheld by the court, the court shall
 9-7     order, when the court's judgment becomes final, that the
 9-8     appropriate amount plus accrued interest be remitted to the person.
 9-9           (b)  The interest accrues at the rate charged on loans to
9-10     depository institutions by the New York Federal Reserve Bank.
9-11           (c)  The interest shall be paid for the period beginning on
9-12     the date the penalty is paid and ending on the date the penalty is
9-13     remitted.
9-14           Sec. 135.162.  RELEASE OF BOND.  (a)  If the person gave a
9-15     supersedeas bond and the penalty is not upheld by the court, the
9-16     court shall order, when the court's judgment becomes final, the
9-17     release of the bond.
9-18           (b)  If the person gave a supersedeas bond and the amount of
9-19     the penalty is reduced, the court shall order the release of the
9-20     bond after the person pays the reduced amount.
9-21           Sec. 135.163.  ADMINISTRATIVE PROCEDURE.  A proceeding to
9-22     impose the penalty is considered to be a contested case under
9-23     Chapter 2001, Government Code.
9-24           SECTION 2.  (a)  This Act takes effect September 1, 2001.
9-25           (b)  Not later than March 1, 2002, the Railroad Commission of
9-26     Texas shall adopt rules as necessary to implement this Act.
 10-1          (c)  Notwithstanding Section 135.051, Natural Resources Code,
 10-2    as added by this Act, an operator may begin or continue conducting
 10-3    a quarrying operation in this state on or after the effective date
 10-4    of this Act and before the Railroad Commission of Texas adopts
 10-5    rules as provided by Subsection (b) of this section without
 10-6    obtaining a certificate of registration for that operation from the
 10-7    commission under Chapter 135, Natural Resources Code, as added by
 10-8    this Act.  As soon as practicable after the commission adopts
 10-9    rules, an operator described by this subsection shall file an
10-10    application for a certificate of registration under Section
10-11    135.052, Natural Resources Code, as added by this Act.  An operator
10-12    who files an application  may continue conducting the operation
10-13    under this subsection until the commission approves or disapproves
10-14    the application.