SRC-AMY C.S.H.B. 3442 78(R)    BILL ANALYSIS


Senate Research CenterC.S.H.B. 3442
By: Pickett (Averitt)
Finance
5-24-2003
Committee Report (Substituted)

DIGEST AND PURPOSE 

Due to the current budget shortfall,  state agencies and institutions of
higher education were asked to prioritize spending based on core functions
and essential services.  Legislators looked to these priorities in
preparation of the budget; however, certain statutory changes are also
needed to conform with appropriations levels in the 2004-05 General
Appropriations Act.  C.S.H.B. 3442 authorizes these statutory changes for
the natural resources agencies listed under Article VI of the 2004-05
General Appropriations Act. C.S.H.B. 3442 also addresses the
implementation of a new freshwater fishing stamp, changes in the Soil and
Water Conservation Board and its brush control program, and the transfer
of certain powers from the Railroad Commission of Texas to the Texas
Department of Transportation.  
    
RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Railroad Commission
in SECTION 3 (Section 102.006, Utilities Code), SECTION 12 (Section 2,
Article 6448a, V.T.C.S.), and SECTION 13 (Section 121.211, Utilities Code)
of this bill. 

Rulemaking authority is expressly granted to the Texas Animal Health
Commission in SECTION 5 (Section161.060, Agriculture Code) of this bill. 

Rulemaking authority is expressly granted to the Parks and Wildlife
Commission in SECTION 9 (Sections 31.032, 31.039, 31.0412, and 31.0465,
Parks and Wildlife Code) and SECTION 10 (Sections 43.802, 43.804, and
43.806, Parks and Wildlife Code) of this bill. 

In SECTION 11, rulemaking authority granted to the Railroad Commission of
Texas for the implementation or enforcement of Chapter 133, Natural
Resources Code, is a rule of the Texas Department of Transportation
(TxDOT) and remains in effect until changed by TxDOT. 

SECTION BY SECTION ANALYSIS

SECTION 1.  REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES GENERALLY.
(a)  Provides that this section applies to any state agency that receives
an appropriation under Article VI of the General Appropriations Act. 
 
(b)  Provides that notwithstanding any other statute of this state, each
state agency to which this section applies is authorized to reduce or
recover expenditures by taking certain measures. 
  
SECTION 2.  TEXAS ANIMAL HEALTH COMMISSION; DUTIES REGARDING RIDING
STABLES.  (a)  Requires the Texas Animal Health Commission to reduce its
expenditures of state money related to regulating equine riding stables. 

 (b)  Repealer:  Chapter 2053 (Riding Stables), Occupations Code.
 
SECTION 3.  ADMINISTRATIVE HEARINGS OF RAILROAD COMMISSION OF TEXAS.
Amends Section 102.006, Utilities Code, as follows: 
 
Sec. 102.006.  New heading:  ADMINISTRATIVE HEARINGS IN CONTESTED CASES.
(a) Requires the railroad commission (RRC) by rule to provide for
administrative hearings in contested cases to be conducted by one or more
members of the railroad commission, by RRC hearings examiners, or by the
utility division of the State Office of Administrative Hearings (SOAH).
Requires the rules to provide for a railroad commission hearings examiner
or the utility division of SOAH to conduct each hearing in a contested
case that is not conducted by one or more RRC members. 
 
(b)  Authorizes RRC to delegate to a RRC hearings examiner or to the
utility division of SOAH the authority to make a final decision and to
issue findings of fact, conclusions of law, and other necessary orders in
a proceeding in which there is not a contested issue of fact or law. 

(c)  Requires RRC by rule to define the procedures by which it delegates
final decision-making authority under Subsection (b) to a railroad
commission hearings examiner or to the utility division of SOAH. 

(d)  Provides that for purposes of judicial review, the final decision,
rather than administrative law judge's decision, of a railroad commission
hearings examiner or an administrative law judge of SOAH in a matter
delegated under Subsection (b) has the same effect as a final decision of
RRC unless a member of the commission requests formal review of the
decision. 

(e)  Requires SOAH to charge RRC a fixed annual rate for hearings
conducted by the office under this section only if the legislature
appropriates money for that purpose.  Provides that if the legislature
does not appropriate money for the payment of a fixed annual rate under
this section, SOAH must charge RRC an hourly rate of not more than $90 per
hour for hearings conducted by the office under this section. 

SECTION 4.  TEXAS DEPARTMENT OF AGRICULTURE.  (a)  Amends Section 146.021,
Agriculture Code, to authorize the Texas Department of Agriculture (TDA),
notwithstanding any other law, to use any portion of fees collected under
this section that remains after spending the proceeds of the fees to meet
other necessary expenses incurred under this section for expenses related
to maintenance of or repairs to TDA facilities. 

(b) Amends Section 13.101(a), Agriculture Code, to decrease the frequency
with which TDA is required to inspect and test a weight or measure for
correctness by a sealer from every three years to every four years, under
certain circumstances. 

(c) Repealer: Article 8614 (Sales of Certain Fuel Mixtures), V.T.C.S.

(d) Effective date of this section:  September 1, 2003. 

SECTION 5.  ANIMAL HEALTH COMMISSION.  (a) Amends Subchapter C, Chapter
161, Agricultural Code, by adding Section 161.060, as follows: 

Sec. 161.060.  INSPECTION FEES.  Authorizes the Animal Health Commission
(TAHC) to charge a fee, as provided by TAHC rule, for an inspection made
by TAHC. 

(b) Effective date of this section:  September 1, 2003. 

SECTION 6.  GENERAL LAND OFFICE OIL SPILL RECOVERY.  (a) Amends Sections
40.155(a), (c), and (d), Natural Resources Code, as follows: 

(a) Increases the threshold amount of the unencumbered balance in the fund
from $25 million to $40 million.  

(c) and (d) Make conforming changes.

(b) Effective date for this section:  September 1, 2003. 
 
SECTION 7.  TEXAS COMMISSION ON ENVIRONMENTAL QUALITY.  (a) Amends Section
5.701, Water Code, by adding Subsection (r), as follows: 

(r) Prohibits the fee for processing a request for an expedited letter
from the executive director of the Texas Commission on Environmental
Quality (TCEQ) stating the total depth of surface casing needed during the
drilling of wells to protect usable ground waters in the state and
required for the processing of certain permits from the Railroad
Commission of Texas from exceeding $75. 

(b) Amends Section 26.351(f), Water Code, to require a corrective action
plan for sites found under Subdivision (2) , to be initiated and
proceeding according to the requirements and deadlines in the approved
plan no later than March 1, 2005, rather than March 1, 2004. 

(c) Amends Section 26.3573(r), Water Code, to prohibit the petroleum
storage tank remediation account from being used to reimburse any person
for corrective action performed after September 1, 2006, rather than
September 1, 2005. 

(d) Amends Section 26.3573(s), Water Code, to prohibit the petroleum
storage tank remediation account from being used to reimburse any person
for corrective action contained in a reimbursement claim filed with TCEQ
after March 1, 2007, rather than March 1, 2006. 

(e) Amends Section 26.35731(c), Water Code, to require TCEQ, not later
than the 90th day after the date on which TCEQ receives a completed
application for reimbursement from the petroleum storage tank remediation
account, to send a fund payment report to the owner or operator of a
petroleum storage tank system that is seeking reimbursement, if sufficient
funds are available to make the payment. 

(f) Effective date of this section:  September 1, 2003. 

SECTION 8.  TEXAS PARKS AND WILDLIFE DEPARTMENT FEES.  (a) Amends Section
11.032, Parks and Wildlife Code, by amending Subsection (b) and adding
Subsection (c), as follows: 

(b) Requires the Texas Parks and Wildlife Department (TPWD) to deposit to
the credit of the game, fish, and water safety account all revenue, less
allowable costs, from certain sources, including vessel registration fees,
rather than motorboat registration fees; vessel, rather than motorboat,
manufacturer or dealer licensing fees, rather than registration fees; and
vessel and outboard motor titling fees.  Makes nonsubstantive changes. 

(c) Requires TPWD, not later than the 10th day of each month, to transfer
15 percent of all amounts collected during the previous month from sources
described by Subsection(b)(15), (16), or (22) to the state parks account. 

(b) Effective date of this section:  September 1, 2003. 

SECTION 9.  TEXAS PARKS AND WILDLIFE DEPARTMENT REGULATION OF MARINE
BUSINESSES.  (a) Amends Section 31.003, Parks and Wildlife Code, by
amending Subdivision (7) and adding Subdivision (16), as follows: 

(7) Redefines "dealer."

(16) Defines "distributor."

(b) Amends Subchapter A, Chapter 31, Parks and Wildlife Code, by adding
Section 31.007, as follows: 

Sec. 31.007.  DEALER REQUIREMENTS.  Requires a dealer to display in each
of the dealer's places of business a sign that contains certain
information and to operate in a space sufficient to maintain an office,
service area, and display of products. 

(c) Amends Section 31.021, Parks and Wildlife Code, as follow:

Sec. 31.021.  REQUIRED NUMBERING.  (a) Deletes from the requirement that
each vessel on the water be numbered in accordance with the provisions,
the specification that the vessel be documented. 

(b) Specifies that the identifying number set forth in the certificate
properly displayed on each side of the bow of the vessel is as required by
this chapter. 

(d) Amends Section 31.032, Parks and Wildlife Code, as follows:

Sec. 31.032.  NUMBERING ON BOW.  (a) Creates this subsection from existing
text.  Specifies that the owner of a vessel is required to paint on or
attach to each side of the vessel near the bow, the identification number
and a validation decal in the manner prescribed by TPWD. 

(b) Provides that the owner of a vessel required to be numbered under this
subchapter and documented by the United States Coast Guard is not required
to attach an identification number as required by Subsection (a). 

(c) Requires the Parks and Wildlife Commission (commission) to adopt rules
for the placement of the validation decal in an alternative location for
antique boats.  Defines "antique boat." 

(e) Amends Section 31.039, Parks and Wildlife Code, as follows:

Sec. 31.039.  PUBLIC RECORDS; FEES.  (a) Creates this subsection from
existing text. 

(b)  Authorizes the commission, by rule, to charge a fee for access to
ownership records and other records made or kept under this chapter. 

(f) Amends Section 31.041, Parks and Wildlife Code, as follows:

Sec. 31.041.  New heading: DEALER'S, DISTRIBUTOR'S, AND MANUFACTURER'S
LICENSE.  (a) Prohibits a person from engaging in business in this state
as a dealer, distributor, or manufacturer, unless the person holds a
license issued under this section.  Requires a dealer to have a license
for each  place of business owned and operated by the person. 

(b)  Requires the commission to establish  the form and manner for a
display of a license issued under this section. 

(c) Requires TPWD to issue a dealer, distributor, or manufacturer number
to each dealer, distributor, or manufacturer licensed under this section
in the manner provided by Section 31.031(b) (Numbering Pattern). 

(d) Creates this section from existing text.  Includes a distributor,
along with a dealer or manufacturer of vessels in this state as authorized
to use, rather than obtain, the dealer's, distributor's, or manufacturer's
number for vessels the dealer, distributor, or manufacturer wishes to
show, demonstrate, or test on the water of this state instead of securing
a certificate of number for each vessel.  Provides that, for purposes of
this subsection, "show, demonstrate, or test" does not include the use of
a  vessel for recreational purposes or for participation in a contest for
event. Makes a conforming change. 

(e) Redesignates this subsection from Subsection (b).  Requires that the
application for a license, rather than a number, under this section to
state certain information.  Requires an application submitted by a dealer
to be accompanied by certain documents.  Provides that the two-year fee
for a dealer's, distributor's, or manufacturer's number is $500, rather
than $45 or an amount set by the commission.  Prohibits a license, rather
than a number, from being issued until the provisions of this section have
been satisfied.  Makes conforming changes. 

(f) Redesignates this subsection from Subsection (c).  Includes a
reference to Subsection (c).  Requires the form of the facsimile and the
manner of display of the number to be prescribed by TPWD.  Makes
conforming changes. 

(g) Redesignates this subsection from Subsection (d).  Deletes text
referring to transferring a vessel or outboard motor.  Makes conforming
changes. 

(g) Amends Subchapter B, Chapter 31, Parks and Wildlife Code, by adding
Sections 31.0411, 31.0412, and 31.0413, as follows: 

Sec. 31.0411.  TERM OF LICENSE; TRANSFER.  (a) Provides that except as
provided by Subsection (b), a license issued under Section 31.041 is valid
for two years from the date of issuance and is prohibited from being
transferred to another person. 

(b) Provides that a license issued under Section 31.041 in the name of a
business remains valid for the business location specified on the license
if a change of ownership or business name occurs. 

(c) Authorizes a license issued under Section 31.041 to be transferred to
a new address under certain circumstances. 

Sec. 31.0412.  LICENSING RULES.  Authorizes the commission to adopt rules
regarding licenses issued under Section 31.041, including certain rules
regulating certain activities. 

Sec. 31.0413.  EXEMPTION FROM DEALER LICENSING REQUIREMENTS. Provides that
the dealer licensing provisions of this subchapter do not apply to the
sale of a canoe, kayak, punt, rowboat, rubber raft, paddle boat, or other
vessel that is less than 12 feet in length and has a horsepower rating of
five or less, or to the sale of an outboard motor with a manufacturer's
rating of five horsepower or less. 

(h) Amends Section 31.042(b), Parks and Wildlife Code, to delete as a
cause for cancellation of certificates and voiding of numbers, the
issuance of a marine document by the Bureau of Customs for the same
vessel.   Makes nonsubstantive changes. 

(i) Amends Subchapter B, Chapter 31, Parks and Wildlife Code, by adding
Section 31.044, as follows: 

Sec. 31.044.  INSPECTIONS.  Prohibits a dealer, distributor, or
manufacturer from refusing to allow TPWD or a peace officer to inspect a
vessel, outboard motor, or records relating to the possession,
origination, ownership, or transfer of a vessel or outboard motor at a
dealership or distributor's or manufacturer's place of business during
normal business hours. 

 (j) Amends Subchapter B-1, Chapter 31, Parks and Wildlife Code, by adding
Section 31.0465, as follows: 

Sec. 31.0465.  APPEAL REGARDING CERTIFICATE OF TITLE; BOND; RULES.  (a)
Authorizes an applicant for a certificate of title under Section 31.046
(Application for Certificate of Title) to appeal TPWD's refusal to issue
the title by filing a bond with TPWD as provided by this section. 

(b) Requires a bond filed under this section to meet certain criteria.

(c) Authorizes TPWD to issue the certificate of title to the person filing
the bond if the applicant proves that the vessel or outboard motor is not
stolen and that issuance of a certificate of title would not defraud the
owner or a lienholder of the vessel or outboard motor, to TPWD's
satisfaction. 

(d) Provides that a person described by Subsection (b)(5) has a right of
action to recover on the bond for a breach of condition of the bond
described by Subsection (b)(5).  Prohibits the aggregate liability of the
surety to all persons from exceeding the amount of the bond. 

(e) Provides that a bond filed under this section expires on the third
anniversary of the date the bond became effective.  Requires TPWD to
return an expired bond to the person who filed the bond unless TPWD has
been notified of a pending action to recover on the bond. 

(f) Requires TPWD, on return of a bond under Subsection (e), to issue a
certificate of title to the person to whom the bond is returned. 

(g) Authorizes the commission, in addition to the situation described by
Subsection (c), by rule, to define acceptable situations in which
certificates of title are authorized to be issued after filing a bond
under this section. 

(k) Amends Section 31.049(c), Parks and Wildlife Code, to delete text
referring to a duplicate original certificate. 

(l) Amends Section 31.053, Parks and Wildlife Code, by adding Subsection
(f) to require a person who is not licensed as a dealer, distributor, or
manufacturer under this chapter to obtain a certificate or number or
certificate of title to a vessel or outboard motor in the person's name
before transferring the certificate of number or certificate of title. 

(m) Amends Section 31.127(a), Parks and Wildlife Code, to include in the
list of actions that constitute committing an offense that is a Class C
Parks and Wildlife Code misdemeanor, a person who violates or fails to
comply with a proclamation of the commission entered under this chapter or
a city ordinance or order of a commissioners court or a political
subdivision of the state made or entered under this chapter. 

(n) Requires the commission, not later than January 1, 2004, to adopt any
rules necessary to implement Subsections (a) - (l) of this section. 

(o) Makes application of Section 31.041, Parks and Wildlife Code this Act
prospective to March 1, 2004. 

(p) Effective date of this section:  September 1, 2003. 

SECTION 10.  TEXAS PARKS AND WILDLIFE DEPARTMENT: FRESHWATER FISHING
STAMP.  (a) Amends Chapter 43, Parks and Wildlife Code, by adding
Subchapter U, as follows: 

SUBCHAPTER U.  FRESHWATER FISHING STAMP

 Sec. 43.801.  DEFINITION.  Defines "fresh water." 

Sec. 43.082.  FRESHWATER FISHING STAMP REQUIRED.  (a) Provides that,
except as provided by Subsection (b) or (c), no person is authorized to
engage in fishing in fresh water for sporting purposes in this state
unless the person has acquired a freshwater fishing stamp issued to the
person by TPWD.  Authorizes the commission, by rule, to adopt requirements
relating to possessing a freshwater fishing stamp required by this
section. 

(b) Provides that a person who is exempted from obtaining a fishing
license under Chapter 46 (Fishing Licenses) is not required to obtain a
freshwater fishing stamp. 

(c) Authorizes the commission, by rule, to exempt a person from the
freshwater fishing stamp requirement of this section. 

Sec. 43.803.  FISHING LICENSE REQUIRED.  Provides that the acquisition of
a freshwater fishing stamp does not authorize a person to fish in fresh
water for sporting purposes without having acquired a fishing license as
provided by Chapter 46 (Fishing Licenses).  Provides that the acquisition
of a freshwater fishing stamp does not authorize a person to fish at any
time or by any means not otherwise authorized by this code. 

Sec. 43.804.  DESIGN AND ISSUANCE OF STAMPS.  (a) Authorizes TPWD to issue
a freshwater fishing stamp to any person on the payment to TPWD of $5.
Requires a stamp, except as provided by Subsection (e), to be signed on
its face by the person using it, for the stamp to be valid for fishing
purposes. 

(b) Authorizes TPWD to issue a collectible freshwater fishing stamp to any
person who pays TPWD $5.  Provides that a collectible freshwater fishing
stamp  does not authorize a person to fish and is not valid for fishing
purposes. 

(c) Requires the commission, by rule, to prescribe the form, design, and
manner of issuance of the freshwater fishing stamp and the collectible
freshwater fishing stamp.  Provides that TPWD retains all reproduction
rights to the design of the freshwater fishing stamp  and the collectible
freshwater fishing stamp. 

(d) Authorizes the commission to contract with and pay a person for
designing and producing the freshwater fishing stamp or the collectible
freshwater fishing stamp. 

(e) Authorizes the commission, by rule, to prescribe alternate
requirements for identifying the purchaser of a freshwater fishing stamp
issued in an automated manner. 

Sec. 43.805.  DISPOSITION OF STAMP FEES.  (a) Requires  the net receipts
from freshwater fishing stamp and collectible freshwater fishing stamp
sales, after deduction of any collection fee, to be sent to TPWD. 

(b) Authorizes the net receipts from freshwater fishing stamp sales to be
spent only for certain purposes. 

(c) Authorizes the net receipts from collectible freshwater fishing stamp
sales to be spent only for certain purposes. 

Sec. 43.806.  EXPIRATION OF STAMP.  (a) Provides that a freshwater fishing
stamp, except as provided by Subsection (b) or (c), is valid for fishing
only during the yearly period for which the stamp is issue, without regard
to the date on which the stamp was acquired.  Provides that each yearly
period begins on September 1 of the year in which the stamp is issued or
another date set by the commission.  Authorizes the commission, by rule,
to set  the amount of a stamp fee for a stamp issued during a transition
period at  an amount lower than prescribed in this subchapter and provide
for a stamp term for a transition period that is shorter or longer than
one year. 

(b) Provides that a  freshwater fishing stamp issued before September 1,
or another date set by the commission, that does not expire until August
31 of the next year, or another date set by the commission, is valid from
the date of issuance through August 31 of the next year, or another date
set by the commission. 

(c) Provides that a freshwater fishing stamp issued in conjunction with a
license issued under Section 46.005 or 46.0051 expires on the later of the
license expiration date or the date printed on the stamp. 

Sec. 43.807.  REFUSAL TO SHOW STAMP.  Provides that a person fishing in
fresh water for sporting purposes who refuses on demand of any game
management officer or peace officer to show a freshwater fishing stamp or
proof that the person is exempt under Section 43.802(b), or a rule adopted
under that section, is presumed to be in violation of Section 43.802. 

Sec. 43.808.  PENALTY.  Provides that a person who violates Section 43.802
is guilty of a Class C Parks and Wildlife misdemeanor. 

Sec. 43.809.  EXPIRATION OF SUBCHAPTER.  Provides that this subchapter
expires September 1, 2014. 

(b) Repealer: Subchapters N (Freshwater Trout Stamp) and Q (Muzzleloader
Hunting Stamp), Parks and Wildlife Code. 

(c) Effective date of this section:  September 1, 2004. 

SECTION 11.  TRANSFER OF RAILROAD COMMISSION OF TEXAS FUNCTIONS RELATED TO
QUARRY AND PIT SAFETY.  (a) Provides that on September 1, 2003  

(1) All powers, duties, functions, and activities performed by the
Railroad Commission (RRC) of Texas under Chapter 133, Natural Resources
Code, immediately before that date are transferred to the Texas Department
of Transportation (TxDOT); 

(2) All employees of the RRC whose primary duties relate to the
implementation of Chapter 133, Natural Resources Code, become TxDOT
employees; 

(3) A rule, form, order, or procedure adopted by RRC for the
implementation or enforcement of Chapter 133, Natural Resources Code, is a
rule form order or procedure of TxDOT and remains in effect until changed
by TxDOT; 

(4) A reference in Chapter 133, Natural Resources Code, to RRC means TxDOT;

(5) A permit or certification in effect under Chapter 133, Natural
Resources Code, that was issued by RRC is continued in effect as a permit
or certification issued by TxDOT; and  

(6) a complaint, investigation, or other proceeding under Chapter 133,
Natural Resources Code, pending before the RRC is transferred without
change in status to TxDOT. 

(b) Effective date of this section:  September 1, 2003. 

SECTION 12.  RAILROAD COMMISSION OF TEXAS FUNCTIONS RELATED TO RAILROAD
SAFETY.  (a) Amends Article 6448a, V.T.C.S., as follows: 

Art. 6448a.  New heading: IMPLEMENTATION OF FEDERAL RAILROAD SAFETY ACT OF
1970. 
 
Sec. 1.  Creates this section from existing text.

Sec. 2.  (a) Requires RRC by rule to adopt reasonable fees to be assessed
annually against railroads operating within the state. 

(b) Requires RRC by rule to establish the method by which fees are
calculated and assessed. 

(c) Prohibits the total amount of fees estimated to be collected by rule
adopted by RRC under this section from exceeding the amount estimated by
RRC to be necessary to recover the costs of administering RRC's rail
safety program. 

(d) Authorizes RRC, in adopting a fee structure, to consider the gross ton
miles for railroad operations within the state for each railroad operating
in the state, to provide for the equitable allocation among railroads of
the cost of administering RRC's rail safety program. 

(e) Requires a fee collected under this section to be deposited to the
credit of the general revenue fund to be used for the rail safety program. 

(b) Effective date for this section:  September 1, 2003. 

SECTION 13.  RAILROAD COMMISSION OF TEXAS FUNCTIONS RELATED TO PIPELINES.
(a) Amends Subchapter E, Chapter 121, Utilities Code, by adding Section
121.211, as follow: 

Sec. 121.211.  PIPELINE SAFETY FEES.  Authorizes RRC, by rule, to adopt an
inspection fee to be assessed annually against operators of natural gas
distribution pipelines and their pipeline facilities and natural gas
master metered pipelines and their pipeline facilities subject to this
chapter. 

(b) Authorizes RRC, by rule, to establish the method by which the fee is
calculated and assessed.  Authorizes RRC, in adopting a fee structure, to
consider any factors necessary to provide for the equitable allocation
among operators of the cost of administering RRC's pipeline safety program
under this chapter. 

(c) Prohibits the total amount of fees estimated to be collected by rule
adopted by RRC under this section from exceeding the amount estimated by
RRC to be necessary to recover the costs of administering RRC's pipeline
safety program under this chapter, excluding costs that are fully funded
by federal sources. 

(d) Authorizes RRC to assess each investor-owned and each municipally
owned natural gas distribution system subject to this chapter an annual
inspection fee not to exceed 50 cents for each service line reported by
the system on the Distribution annual Report, Form RSPA F7100. 1-1, due on
March 15 of each year.  Provides that the fee is due on March 15 of each
year. 

(e) Authorizes RRC to assess each operator of a natural gas master metered
system subject to this chapter an annual inspection fee not to exceed $100
for each master metered system.  Provides that the fee is due June 30 of
each year. 

(f) Authorizes RRC to assess a late payment penalty of 10 percent of the
total assessment due under Subsection (d) or (e) that is not paid within
30 days after the annual due date established by the applicable
subsection. 

(g) Requires each investor-owned and municipally owned natural gas
distribution company and each natural gas master meter operator to recover
as a surcharge to its existing rates the amounts paid to RRC under this
section.  Prohibits  amounts  collected under this subsection by an
investor-owned natural gas distribution company from being included in the
revenue or gross receipts of the company for the purpose of calculating
municipal franchise fees or any tax imposed under Subchapter B, Chapter
182, Tax Code, or under Chapter 122.  Provides that those amounts are not
subject to a sales and use tax imposed by Chapter 151, Tax Code, or
Chapters 321 through 327, Tax Code. 

(h) Requires a fee to be deposited to the credit of the general revenue
fund to be used for the pipeline safety program. 

(b) Effective date of this section:  September 1, 2003. 

SECTION 14.  SOIL AND WATER CONSERVATION BOARD.  (a) Amends Section
201.011, Agriculture Code, as follows: 

Sec. 201.011.  COMPOSITION.  Provides that the State Soil and Water
Conservation Board (SWCB) is a state agency composed of seven, rather than
five, certain members. 

(b) Amends Section 201.015(b), Agriculture Code, to provide that the term
of office of an elected member of SWCB begins on the day after the day on
which the member was elected.  Provides that the term of one member
appointed by the governor expires February 1 of each odd-numbered year,
and the term of the other member appointed by the governor expires
February 1 of each even-numbered year. 

(c) Amends Section 201.016, Agriculture Code, to provide that vacancies on
SWCB are filled by election in the manner provide by this subchapter for
an unexpired term or for a full term. 

(d) Amends Subchapter B, Chapter 201, Agriculture Code, by adding Sections
201.028 and 201.029, as follows: 

Sec. 201.028.  SEMIANNUAL REPORT.  Requires SWCB, not later than January 1
and July 1 of each year, to prepare and deliver a report to certain
elected officials relating to the status of SWCB's budget areas of
responsibility assigned to SWCB.  

Sec. 201.029.  MANAGEMENT AUDIT.  Requires  the state auditor, in
coordination with the Legislative Budget Board (LBB), not later than March
1, 2004, to conduct a management audit of SWCB and deliver the audit
report to certain elected officials.  Requires the audit to include an
evaluation of the administrative budget for SWCB.  Provides that this
section expires April 1, 2004. 

(e) Amends Sections 203.011-203.013, Agriculture Code, as follows:

Sec. 203.011.  AUTHORITY OF BOARD.  Provides that SWCB has jurisdiction
over and is required to administer the brush control program under this
chapter with the assistance of local districts. 

Sec. 203.012.  RULES.  Requires SWCB, after consulting with  local
districts, reasonable rules that are necessary to carry out this chapter. 

Sec. 203.013.  AUTHORITY OF DISTRICTS.  Deletes text referring to the
location of a critical area. 

(f) Amends Section 203.016, Agriculture Code, to require SWCB to consult
the Texas Water Development Board (TWDB) and TDA in regard to the effects
to the brush control program on water quantity as well as with TPWD in
regard to the effects of the brush control program on fish and wildlife. 

 (g) Amends Section 203.051, Agriculture Code, to require SWCB to prepare
and adopt a state brush control plan required to include a comprehensive
strategy for managing brush in all areas of the state where brush is
contributing to a substantial water conservation problem, and rank, rather
than designate, areas in the state in need of a brush control program.
Deletes text referring to critical need. 

(h) Amends Sections 203.052(b), (c), and (d), Agriculture Code, as
follows:  

(b) Includes in the required content of the notice instructions for each
district to submit comments on the proposed plan. Makes nonsubstantive
changes. 

(c) Requires SWCB to enter any written comments received on the proposed
plan into the record of the hearing and consider all written testimony
before taking final action on the proposed plan. 

(d) Makes a conforming change.

(i) Amends Section 203.053, Agriculture Code, as follows:

Sec. 203.053.  New heading: CRITERIA FOR EVALUATING BRUSH CONTROL AREAS.
(a) Requires SWCB, in ranking areas under the plan, to consider the amount
of water produced by a project and the severity of water shortage in the
areas, as well as other criteria.  Makes conforming changes. 

(b) Makes a conforming change.

(j) Amends Section 203.055, Agriculture Code, as follows:

Sec. 203.055.  APPROVED METHODS FOR BRUSH CONTROL.  (a) Makes a conforming
change. 

(b) Authorizes SWCB to approve a method for use under the cost-sharing
program provided by Subchapter E of this chapter if SWCB finds that the
proposed method will have a beneficial impact on the development of water
sources and wildlife habitat and will allow the revegetation of the area
after the brush is removed with plants that are beneficial to stream
flows, groundwater levels, livestock, and wildlife, as well as other
effects. 

(k) Amends Section 203.101, Agriculture Code, to make a conforming change.

(l) Amends Section 203.154, Agriculture Code, by amending Subsections (a)
and (c) and adding Subsection (d), as follows: 

(a) Authorizes not more than 70 percent, rather than 80 percent, of the
total cost of a single brush control project to be made available as the
state's share in cost sharing. 

(c) Authorizes SWCB to grant an exception to Subsection (b) of this
section if SWCB finds that joint participation of the state brush control
program and any federal brush control program will not exceed 80 percent
of the total cost of the project. 

(d) Provides that a political subdivision of this state is eligible for
cost sharing under this brush control program as long as the state's share
does not exceed 50 percent of any one project. 

(m) Amends Sections 203.156-203.158, Agriculture Code, as follows: 

Sec. 203.156.  APPLICATION FOR COST SHARING.  Includes a political
subdivision of this state, as a person. 

Sec. 203.157.  CONSIDERATIONS IN PASSING ON APPLICATION.  Requires SWCB,
in passing on an application for cost sharing, to consider the location of
the project and any comments and recommendations  submitted by a local
district, TWDB, or TPWD, as well as other factors. 

Sec. 203.158.  APPROVAL OF APPLICATION.  Authorizes SWCB to approve an
application if, after considering the factors listed in Section 203.157 of
this code and any other relevant factors, SWCB finds the project ranks
higher than other projects submitted in accordance with the board's plan,
as well as other findings.  Makes a conforming change. 

(n) Amends Sections 203.159(a) and (c), Agriculture Code, as follows:

(a) Requires, rather than authorizes, SWCB, if the demand for funds under
this cost-sharing program is greater than funds available, to establish
certain priorities. 

(c) Requires SWCB to consider quantity of stream flows, the quantity of
groundwater, and the amount of water conservation from the eradication of
brush each to be a priority.  Deletes text referring to dedicated land. 

(o) Repealer: Sections 203.001(5) (Critical area) and 203.155 (Limit to
Critical Areas and Approved Methods), Agriculture Code. 

(p) Requires the governor, in making initial appointments to SWCB under
Section 201.011, Agriculture Code, as amended by this section, to
designate one member to serve a term expiring February 1, 2004, and the
other member to serve a term expiring February 1, 2005. 

(q) Requires SWCB to prepare and deliver the first report required by
Section 201.028, Agriculture Code, as added by this section, not later
than January 1, 2004. 

(r) Effective date of this section:  September 1, 2003. 

SECTION 15.  EFFECTIVE DATE.  Effective date:  upon passage or September
1, 2003.