By Shapiro                                             S.B. No. 910
         77R3831 SMH-F                           
                                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)  "Aggregates," "commission," "operator,"
1-13     "overburden," "owner," "pit," "quarrying," "quarry," "ridge," and
1-14     "site" have the meanings assigned those 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
 2-1     will be disturbed as a result of the quarrying operations.
 2-2                 (4)  "Reclamation" means the process of restoring an
 2-3     area affected by a quarrying operation to its original or other
 2-4     substantially beneficial condition, considering past and possible
 2-5     future uses of the area and the surrounding topography.
 2-6           Sec. 135.003.  EXEMPTIONS. (a)  This chapter does not apply
 2-7     to:
 2-8                 (1)  land under the jurisdiction of the General Land
 2-9     Office;
2-10                 (2)  land from which aggregates are being produced on
2-11     September 1, 2001; or
2-12                 (3)  a parcel of land of less than five acres.
2-13           (b)  Notwithstanding Subsection (a)(1), land covered by that
2-14     subsection on which quarrying is conducted must be reclaimed in a
2-15     manner consistent with this chapter.
2-16           (c) Notwithstanding Subsection (a)(2), an operator may not
2-17     expand the surface acreage of a pit from which aggregates are being
2-18     produced on September 1, 2001, unless the operator obtains a
2-19     certificate of registration and complies with the other provisions
2-20     of this chapter with respect to the expanded portion of the pit and
2-21     any land affected by the expansion.  The operator is not required
2-22     to comply with this chapter with respect to the land affected by
2-23     the quarrying operation as of September 1, 2001.
2-24              (Sections 135.004-135.050 reserved for expansion
2-25                   SUBCHAPTER B.  AUTHORITY OF COMMISSION
2-26           Sec. 135.051.  GENERAL AUTHORITY OF COMMISSION. (a)  The
2-27     commission may:
 3-1                 (1)  adopt rules and issue orders as necessary to
 3-2     implement and enforce this chapter;
 3-3                 (2)  conduct, encourage, request, and participate in
 3-4     studies, surveys, investigations, research, experiments, training,
 3-5     and demonstrations by contract, grant, or otherwise;
 3-6                 (3)  apply for, accept, receive, and administer grants,
 3-7     gifts, loans, or other money from any source for the purposes of
 3-8     this chapter;
 3-9                 (4)  hire employees, adopt standards for employment of
3-10     those persons, and hire or authorize the hiring of outside
3-11     contractors to assist in implementing this chapter; and
3-12                 (5)  enter into contracts with other state agencies
3-13     with pertinent expertise so as to obtain professional and technical
3-14     services necessary to implement this chapter.
3-15           (b)  This chapter does not authorize the commission to
3-16     adjudicate property title or property rights disputes.
3-17           Sec. 135.052.  INSPECTIONS. (a)  On reasonable notice and on
3-18     presentation of appropriate credentials, the commission or an
3-19     authorized representative of the commission may inspect a quarrying
3-20     operation for the purpose of determining whether the operation is
3-21     properly reclaiming the land affected by the operation.
3-22           (b)  An inspection may be conducted only during normal
3-23     operating hours.
3-24           (c)  An inspector must provide a written statement of the
3-25     reasons for the inspection.
3-26           (d)  An inspector shall prepare an inspection report adequate
3-27     to enforce the requirements of, and to implement, this chapter.
 4-1     The inspector shall provide a copy of the report to the operator or
 4-2     an authorized representative of the operator before departing the
 4-3     quarrying operation and shall file the report with the commission.
 4-4     The commission shall provide a copy of the report to the operator
 4-5     and each owner of the site of the quarry who is not the operator.
 4-6           (e)  The commission shall establish a system of rotation of
 4-7     inspectors.
 4-8              (Sections 135.053-135.100 reserved for expansion
 4-9                 SUBCHAPTER C.  CERTIFICATE OF REGISTRATION
4-10           Sec. 135.101.  CERTIFICATE OF REGISTRATION REQUIRED. A person
4-11     may not conduct a quarrying operation in this state unless the
4-12     person holds a certificate of registration for that operation
4-13     issued by the commission under this chapter.
4-14           Sec. 135.102.  APPLICATION. (a)  To obtain a certificate of
4-15     registration, a person must file an application for a certificate
4-16     of registration with the commission on a concise form prescribed by
4-17     the commission, accompanied by a fee of $200 and the bond or
4-18     alternative form of financial security required by Subchapter D.
4-19           (b)  The application must include:
4-20                 (1)  the name, address, and telephone number of the
4-21     operator;
4-22                 (2)  the name, address, and telephone number of each
4-23     owner of the site of the proposed quarry who is not the operator;
4-24                 (3)  the type of aggregate extraction and production
4-25     activities to be conducted on the site of the proposed quarry,
4-26     including an estimate of the number of acres of land to be
4-27     disturbed annually for quarrying purposes;
 5-1                 (4)  a legal description of the land on which the
 5-2     quarry is to be located;
 5-3                 (5)  a map of the site of the proposed quarry showing
 5-4     any easement, public or private road, or right-of-way;
 5-5                 (6)  a statement that the operator has the legal right
 5-6     to quarry the land described; and
 5-7                 (7)  a reclamation plan that complies with the
 5-8     provisions of this chapter governing the reclamation activities
 5-9     that shall be undertaken.
5-10           (c)  A separate application is required for each quarrying
5-11     operation.  The commission by rule shall specify criteria for
5-12     determining whether a quarrying operation constitutes a separate
5-13     operation for which a separate application is required.
5-14           Sec. 135.103.  ISSUANCE OF CERTIFICATE. (a)  Not later than
5-15     the 30th day after the date the commission receives a completed
5-16     application, the application fee, and a bond or alternative form of
5-17     financial security as required by Subchapter D, the commission
5-18     shall:
5-19                 (1)  issue a certificate of registration to the
5-20     applicant entitling the applicant to engage in aggregate quarrying
5-21     operations on the land described in the application; or
5-22                 (2)  provide the applicant a written statement
5-23     explaining the reason for denial of the certificate.
5-24           (b)  The commission may not give public notice or hold a
5-25     public hearing before issuing a certificate of registration.
5-26           Sec. 135.104.  TERM OF CERTIFICATE.  A certificate of
5-27     registration expires on the first anniversary of the date of
 6-1     issuance.
 6-2           Sec. 135.105.  RENEWAL OF CERTIFICATE. A person may renew an
 6-3     unexpired certificate of registration by paying a renewal fee of
 6-4     $500 to the commission before the expiration date of the
 6-5     certificate.
 6-6           Sec. 135.106.  RECLAMATION STANDARDS. A certificate of
 6-7     registration shall require that the quarrying operations meet the
 6-8     applicable reclamation standards of this chapter and commission
 6-9     rules.
6-10           Sec. 135.107.  TRANSFER OF CERTIFICATE. (a)  An operator must
6-11     provide written notice to the commission at least 15 days before
6-12     the date the operator transfers a certificate of registration.  The
6-13     notice must:
6-14                 (1)  include the name of the person to whom the
6-15     operator proposes to transfer the certificate; and
6-16                 (2)  be accompanied by a bond or alternative form of
6-17     financial security as required by Subchapter D provided by the
6-18     person to whom the operator proposes to transfer the certificate.
6-19           (b)  An operator may transfer a certificate of registration
6-20     on or after the 15th day after the date the operator provides
6-21     notice under Subsection (a) unless the commission notifies the
6-22     operator that the transfer is disapproved before that day.  On the
6-23     transfer of the certificate:
6-24                 (1)  the new operator assumes all obligations of the
6-25     former operator with respect to the quarrying operation covered by
6-26     the certificate; and
6-27                 (2)  the former operator is released from those
 7-1     obligations.
 7-2           Sec. 135.108.  AMENDMENT OF CERTIFICATE. (a)  On application,
 7-3     the commission may amend a certificate of registration to cover
 7-4     additional land that is in the immediate vicinity of the quarry for
 7-5     which the certificate was issued, including land that is not
 7-6     contiguous to the quarry.
 7-7           (b)  An application for an amended certificate of
 7-8     registration must describe:
 7-9                 (1)  the additional land to be covered by the
7-10     certificate; and
7-11                 (2)  the quarrying operations to be conducted on the
7-12     land.
7-13           (c)  The filing of an application to amend a certificate of
7-14     registration does not affect the authority granted under the
7-15     certificate of which amendment is sought.
7-16              (Sections 135.109-135.150 reserved for expansion
7-17        SUBCHAPTER D.  BOND OR ALTERNATIVE FORM OF FINANCIAL SECURITY
7-18           Sec. 135.151.  BOND REQUIRED. (a)  An application for a
7-19     certificate of registration must be accompanied by a bond on a form
7-20     prescribed by the commission payable to the state and conditioned
7-21     on the operator's compliance with the requirements of this chapter,
7-22     any  rule adopted or order issued by the commission under this
7-23     chapter, and the reclamation plan for the quarry.
7-24           (b)  A bond must be signed by the operator as principal and
7-25     by a good and sufficient surety licensed to do business in this
7-26     state.
7-27           Sec. 135.152.  AMOUNT OF BOND. A bond must be in the amount
 8-1     of $1,000 for each acre of land to be disturbed as provided by the
 8-2     reclamation plan for the proposed quarry.
 8-3           Sec. 135.153.  TERM OF BOND. (a)  A bond shall remain in
 8-4     effect until the commission determines that the quarry has been
 8-5     reclaimed in accordance with this chapter, commission rules, and
 8-6     the reclamation plan for the quarry.
 8-7           (b)  Notwithstanding Subsection (a), if the commission
 8-8     determines that part of a quarry site has been reclaimed in
 8-9     accordance with this chapter, the commission may release a part of
8-10     the amount of the bond.
8-11           Sec. 135.154.  CANCELLATION OF BOND. The surety on a bond may
8-12     not cancel the bond until the 91st day after the date the surety
8-13     gives the commission written notice of intent to cancel the bond.
8-14           Sec. 135.155.  SUBSTITUTION OF SURETY. (a)  If the surety on
8-15     a bond ceases to do business in this state or the surety's license
8-16     to do business is suspended or revoked, the operator, after
8-17     receiving notice from the commission, shall substitute another good
8-18     and sufficient surety licensed to do business in this state.
8-19           (b)  If an operator fails to substitute sureties as required
8-20     by this section, the commission may suspend the operator's
8-21     certificate of registration until the substitution is made.
8-22           Sec. 135.156.  ALTERNATIVE FORM OF FINANCIAL SECURITY. In
8-23     lieu of filing a bond, an operator may deposit cash, government
8-24     securities, a certificate of deposit, or an irrevocable letter of
8-25     credit with the commission in an amount equal to the amount of a
8-26     bond required under Section 135.152, on terms prescribed by the
8-27     commission.
 9-1              (Sections 135.157-135.200 reserved for expansion
 9-2               SUBCHAPTER E.  CONDUCT OF QUARRYING OPERATIONS
 9-3           Sec. 135.201.  DISTANCE OF PIT PERIMETER FROM PROPERTY LINE.
 9-4     A pit perimeter must be located at least:
 9-5                 (1)  50 feet from the nearest property line if the
 9-6     slope has a horizontal to vertical ratio of at least two to one; or
 9-7                 (2)  100 feet from the nearest property line if the
 9-8     slope is vertical and has a height of at least 10 feet.
 9-9              (Sections 135.202-135.250 reserved for expansion
9-10                         SUBCHAPTER F.  RECLAMATION
9-11           Sec. 135.251.  RECLAMATION PLAN. (a)  A reclamation plan
9-12     submitted as part of an application for a certificate of
9-13     registration must be developed in a manner consistent with:
9-14                 (1)  physical, environmental, and climatological
9-15     conditions; and
9-16                 (2)  quarrying and reclamation technologies the use of
9-17     which is considered a customary business practice at the time the
9-18     plan is developed.
9-19           (b)  A reclamation plan must specify:
9-20                 (1)  the number of acres to be disturbed by the
9-21     proposed quarrying operation; and
9-22                 (2)  whether the quarry site is to be reclaimed for
9-23     forest, pasture, crop, horticultural, homesite, recreational,
9-24     industrial, wildlife, or other use.
9-25           (c)  An operator may amend a reclamation plan at any time,
9-26     subject to commission approval.
9-27           Sec. 135.252.  ACCESS TO LAND ABOVE BENCH OR HIGHWALL. If a
 10-1    quarrying operation produces a bench or solid rock highwall, the
 10-2    operator shall provide at least one suitable access to land above
 10-3    the bench or highwall.
 10-4          Sec. 135.253.  RESTRICTION OF WATERWAY. An operator may not
 10-5    move overburden in a manner that restricts a waterway unless a
 10-6    drainway can be constructed with the approval of each proper state
 10-7    agency.
 10-8          Sec. 135.254.  GRADING OF OVERBURDEN. (a)  An operator shall:
 10-9                (1)  place, grade, and stabilize all overburden removed
10-10    so as to minimize soil erosion, surface disturbance, and stream
10-11    sedimentation; and
10-12                (2)  grade all ridges and peaks of overburden created
10-13    by quarrying to a rolling topography traversable by equipment
10-14    customarily used in connection with the use to be made of the land
10-15    after reclamation, except that the slope is not required to be
10-16    reduced to less than:
10-17                      (A)  the original grade of the area surrounding
10-18    the pit before mining; or
10-19                      (B)  25 degrees from horizontal if the ridge or
10-20    peak results from a box cut.
10-21          (b)  This section does not apply to a quarrying operation:
10-22                (1)  conducted:
10-23                      (A)  in the flood plain of a river or stream and
10-24    subject to periodic flooding; or
10-25                      (B)  in a wetland; or
10-26                (2)  the pit of which is covered by a lake or
10-27    settlement pond as provided by Section 135.255.
 11-1          (c)  Notwithstanding Subsection (a), an operator:
 11-2                (1)  is not required to backfill a pit; and
 11-3                (2)  may leave boulders in a pit.
 11-4          Sec. 135.255.  CONSTRUCTION OF DAM. An operator may construct
 11-5    a dam to form a lake or settlement pond in a pit resulting from a
 11-6    quarrying operation.
 11-7          Sec. 135.256.  REVEGETATION. Revegetation of land affected by
 11-8    a quarrying operation is not required if:
 11-9                (1)  the chemical or physical characteristics of the
11-10    soil seriously inhibit plant growth; or
11-11                (2)  the land is to be covered by a permanent lake or
11-12    pond.
11-13             (Sections 135.257-135.300 reserved for expansion
11-14                   SUBCHAPTER G.  ADMINISTRATIVE PENALTY
11-15          Sec. 135.301.  IMPOSITION OF PENALTY. The commission shall
11-16    impose an administrative penalty on an owner or operator of a
11-17    quarrying operation who violates this chapter or a rule adopted or
11-18    order issued under this chapter.
11-19          Sec. 135.302.  AMOUNT OF PENALTY. The amount of the penalty
11-20    is $5,000, and each day a violation continues or occurs is a
11-21    separate violation for purposes of imposing a penalty.
11-22          Sec. 135.303.  NOTICE OF VIOLATION AND PENALTY. (a)  If,
11-23    after investigation of a possible violation and the facts
11-24    surrounding that possible violation, the commission determines that
11-25    a violation has occurred, the commission shall give written notice
11-26    of the violation to the person alleged to have committed the
11-27    violation.
 12-1          (b)  The notice must:
 12-2                (1)  include a brief summary of the alleged violation;
 12-3                (2)  state the amount of the proposed administrative
 12-4    penalty; and
 12-5                (3)  inform the person of the person's right to a
 12-6    hearing on the occurrence of the violation, the amount of the
 12-7    penalty, or both.
 12-8          Sec. 135.304.  PENALTY TO BE PAID OR HEARING REQUESTED. (a)
 12-9    Not later than the 20th day after the date the person receives the
12-10    notice, the person in writing may:
12-11                (1)  accept the determination and the proposed
12-12    administrative penalty; or
12-13                (2)  make a request for a hearing on the occurrence of
12-14    the violation, the amount of the penalty, or both.
12-15          (b)  If the person accepts the determination and proposed
12-16    penalty, the commission by order shall approve the determination
12-17    and impose the proposed penalty.
12-18          Sec. 135.305.  HEARING. (a)  If the person requests a hearing
12-19    or fails to respond in a timely manner to the notice, the
12-20    commission shall set a hearing and give written notice of the
12-21    hearing to the person.  The commission may employ a hearings
12-22    officer to hold the hearing.
12-23          (b)  The hearings officer shall make findings of fact and
12-24    conclusions of law and promptly issue to the commission a proposal
12-25    for a decision about the occurrence of the violation and the amount
12-26    of a proposed penalty.
12-27          Sec. 135.306.  DECISION BY COMMISSION. (a)  Based on the
 13-1    findings of fact, conclusions of law, and proposal for a decision,
 13-2    the commission by order may:
 13-3                (1)  find that a violation occurred and impose a
 13-4    penalty; or
 13-5                (2)  find that a violation did not occur.
 13-6          (b)  The notice of the commission's order given to the person
 13-7    must include a statement of the right of the person to judicial
 13-8    review of the order.
 13-9          Sec. 135.307.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL. Not
13-10    later than the 30th day after the date the commission's order
13-11    becomes final, the person shall:
13-12                (1)  pay the penalty; or
13-13                (2)  file a petition for judicial review contesting the
13-14    occurrence of the violation, the amount of the penalty, or both.
13-15          Sec. 135.308.  STAY OF ENFORCEMENT OF PENALTY. (a)  Within
13-16    the 30-day period prescribed by Section 135.307, a person who files
13-17    a petition for judicial review may:
13-18                (1)  stay enforcement of the penalty by:
13-19                      (A)  paying the penalty to the court for
13-20    placement in an escrow account; or
13-21                      (B)  giving the court a supersedeas bond approved
13-22    by the court that:
13-23                            (i)  is for the amount of the penalty; and
13-24                            (ii)  is effective until all judicial
13-25    review of the commission's order is final; or
13-26                (2)  request the court to stay enforcement of the
13-27    penalty by:
 14-1                      (A)  filing with the court a sworn affidavit of
 14-2    the person stating that the person is financially unable to pay the
 14-3    penalty and is financially unable to give the supersedeas bond; and
 14-4                      (B)  giving a copy of the affidavit to the
 14-5    commission by certified mail.
 14-6          (b)  If the commission receives a copy of an affidavit under
 14-7    Subsection (a)(2), the commission may file with the court, within
 14-8    five days after the date the copy is received, a contest to the
 14-9    affidavit.  The court shall hold a hearing on the facts alleged in
14-10    the affidavit as soon as practicable and shall stay the enforcement
14-11    of the penalty on finding that the alleged facts are true.  The
14-12    person who files an affidavit has the burden of proving that the
14-13    person is financially unable to pay the penalty and to give a
14-14    supersedeas bond.
14-15          Sec. 135.309.  COLLECTION OF PENALTY. (a)  If the person does
14-16    not pay the penalty and the enforcement of the penalty is not
14-17    stayed, the penalty may be collected.
14-18          (b)  The attorney general may sue to collect the penalty.
14-19          (c)  A penalty collected under this subchapter shall be
14-20    deposited in the state treasury to the credit of the Texas
14-21    aggregate quarry reclamation account.
14-22          Sec. 135.310.  DECISION BY COURT. (a)  If the court sustains
14-23    the finding that a violation occurred, the court may uphold or
14-24    reduce the amount of the penalty and order the person to pay the
14-25    full or reduced amount of the penalty.
14-26          (b)  If the court does not sustain the finding that a
14-27    violation occurred, the court shall order that a penalty is not
 15-1    owed.
 15-2          Sec. 135.311.  REMITTANCE OF PENALTY AND INTEREST. (a)  If
 15-3    the person paid the penalty and if the amount of the penalty is
 15-4    reduced or the penalty is not upheld by the court, the court shall
 15-5    order, when the court's judgment becomes final, that the
 15-6    appropriate amount plus accrued interest be remitted to the person.
 15-7          (b)  The interest accrues at the rate charged on loans to
 15-8    depository institutions by the New York Federal Reserve Bank.
 15-9          (c)  The interest shall be paid for the period beginning on
15-10    the date the penalty is paid and ending on the date the penalty is
15-11    remitted.
15-12          Sec. 135.312.  RELEASE OF BOND. (a)  If the person gave a
15-13    supersedeas bond and the penalty is not upheld by the court, the
15-14    court shall order, when the court's judgment becomes final, the
15-15    release of the bond.
15-16          (b)  If the person gave a supersedeas bond and the amount of
15-17    the penalty is reduced, the court shall order the release of the
15-18    bond after the person pays the reduced amount.
15-19          Sec. 135.313.  ADMINISTRATIVE PROCEDURE. A proceeding to
15-20    impose the penalty is considered to be a contested case under
15-21    Chapter 2001, Government Code.
15-22             (Sections 135.314-135.350 reserved for expansion)
15-23                    SUBCHAPTER H.  RECLAMATION ACCOUNT
15-24          Sec. 135.351.  TEXAS AGGREGATE QUARRY RECLAMATION ACCOUNT.
15-25    (a)  The commission shall deposit the amount recovered on a bond or
15-26    alternative form of financial security as required by Subchapter D
15-27    or an administrative penalty collected under Subchapter G to the
 16-1    credit of the Texas aggregate quarry reclamation account.
 16-2          (b)  The Texas aggregate quarry reclamation account is an
 16-3    account in the general revenue fund that may be appropriated only
 16-4    for the purpose of undertaking corrective or enforcement action
 16-5    under this chapter.
 16-6          SECTION 2. (a)  This Act takes effect September 1, 2001.
 16-7          (b)  Not later than March 1, 2002, the Railroad Commission of
 16-8    Texas shall adopt rules as necessary to implement this Act.
 16-9          (c)  Notwithstanding Section 135.101, Natural Resources Code,
16-10    as added by this Act, an operator may begin conducting a quarrying
16-11    operation in this state on or after the effective date of this Act
16-12    and before the Railroad Commission of Texas adopts rules as
16-13    provided by Subsection (b) of this section without obtaining a
16-14    certificate of registration for that operation from the commission
16-15    under Chapter 135, Natural Resources Code, as added by this Act.
16-16    As soon as practicable after the commission adopts rules, an
16-17    operator described by this subsection shall file an application for
16-18    a certificate of registration under Section 135.102, Natural
16-19    Resources Code, as added by this Act, accompanied by a reclamation
16-20    plan under Section 135.251, Natural Resources Code, as added by
16-21    this Act.  An operator who files an application accompanied by a
16-22    reclamation plan may continue conducting the operation under this
16-23    subsection until the commission approves or disapproves the
16-24    application and reclamation plan.