By:  Elkins                                                       H.B. No. 1366
A BILL TO BE ENTITLED
AN ACT
relating to the environmental regulation and remediation of certain 
dry cleaning facilities; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle B, Title 5, Health and Safety Code, is 
amended by adding Chapter 374 to read as follows:
CHAPTER 374. DRY CLEANER ENVIRONMENTAL RESPONSE
SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 374.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Carbon dioxide facility" means a dry cleaning 
facility that:   
			(A)  is equipped for and uses the dry cleaning 
solvent carbon dioxide; and
			(B)  is owned by a person who has not used or 
allowed the use of the dry cleaning solvent perchloroethylene at 
any other dry cleaning facility in this state.
		(2)  "Chlorinated dry cleaning solvent" means any dry 
cleaning solvent that contains a compound that has a molecular 
structure containing the element chlorine.
		(3)  "Commission" means the Texas Commission on 
Environmental Quality.
		(4)  "Corrective action" means those activities 
described by Section 374.152 or 374.153.
		(5)  "Corrective action plan" means a plan approved by 
the commission to perform corrective action at a dry cleaning 
facility.
		(6)  "Dry cleaning drop station" means a retail 
commercial establishment that acts as a collection point for the 
drop-off and pick-up of garments or other fabrics that are sent to a 
dry cleaning facility for processing.
		(7)  "Dry cleaning facility" means:                                    
			(A)  a retail commercial establishment that 
operates, or has operated, in whole or in part for the purpose of 
cleaning garments or other fabrics using a process that involves 
any use of dry cleaning solvents;
			(B)  all contiguous land used in connection with 
the establishment; and
			(C)  all structures and other appurtenances and 
improvements located on the contiguous land and used in connection 
with the establishment.
		(8)  "Dry cleaning solvent" includes:                                  
			(A)  perchloroethylene, also known as 
tetrachloroethylene, petroleum-based solvents, hydrocarbons, 
silicone-based solvents, and other nonaqueous solvents used in the 
cleaning of garments or other fabrics at a dry cleaning facility; 
and
			(B)  the chemicals and compounds into which the 
solvents degrade.   
		(9)  "Dry cleaning unit" means a machine or device that 
uses dry cleaning solvents to clean garments and other fabrics and 
any piping, ancillary equipment, and containment system associated 
with the machine or device.
		(10)  "Executive director" means the executive 
director of the commission.
		(11)  "Fund" means the dry cleaning facility release 
fund.           
		(12)  "Owner" means a person who owns or leases, or has 
owned or leased, a dry cleaning facility and who is or has been 
responsible for the operation of dry cleaning operations at the dry 
cleaning facility.
		(13)  "Release" means a spill, emission, discharge, 
escape, leak, or disposal of dry cleaning solvent from a dry 
cleaning facility into the soil or water of the state.
	Sec. 374.002.  APPLICABILITY OF OTHER LAW.  To the extent 
that this chapter is inconsistent or in conflict with Chapter 361 or 
other general law, this chapter prevails.
	Sec. 374.003.  APPLICABILITY TO GOVERNMENTAL BODIES.  This 
chapter does not apply to:
		(1)  a governmental entity, including a governmental 
agency or prison; or
		(2)  a political subdivision of this state, including a 
municipality or a conservation and reclamation district created 
under Section 59, Article XVI, Texas Constitution, that owns or 
operates a wholesale or retail water supply system, public solid 
waste system, public storm water and drainage system, or public 
solid waste disposal system.
	Sec. 374.004.  ADVISORY COMMITTEE.  (a)  The executive 
director shall appoint an advisory committee composed of:
		(1)  three representatives of the dry cleaning industry 
who shall provide professional and practical expertise to the 
commission;
		(2)  one public representative of urban areas; and                     
		(3)  one public representative of rural areas.                         
	(b)  The advisory committee shall:                                      
		(1)  review and comment on the methodology the 
commission uses to rank contaminated sites under Section 374.154;
		(2)  review and comment on the report the commission 
prepares each biennium under Section 374.056; and
		(3)  assist in the development of rules to implement 
this chapter.   
	(c)  A member of the committee serves at the will of the 
executive director.
[Sections 374.005–374.050 reserved for expansion]
SUBCHAPTER B.  RULES, STANDARDS, CRITERIA, AND REPORTS
	Sec. 374.051.  COMMISSION RULES AND STANDARDS.  (a)  The 
commission shall adopt rules necessary to administer and enforce 
this chapter.  Rules adopted under this section must be reasonably 
necessary:
		(1)  to preserve, protect, and maintain the water and 
other natural resources of this state; and
		(2)  to provide for prompt corrective action of 
releases from dry cleaning facilities.
	(b)  The commission shall adopt rules that establish:                   
		(1)  performance standards for dry cleaning 
facilities;              
		(2)  requirements for the removal of dry cleaning 
solvents and wastes from dry cleaning facilities that are to be 
closed by the owner to prevent future releases;
		(3)  criteria to be used in setting priorities for the 
expenditure of money from the fund after consideration of:
			(A)  the benefit to be derived from corrective 
action compared to the cost of implementing the corrective action;
			(B)  the degree to which human health and the 
environment are affected by exposure to contamination;
			(C)  the present and reasonably foreseeable 
future uses of affected surface water or groundwater;
			(D)  the effect that interim or immediate remedial 
measures may have on future costs;
			(E)  the amount of money available for corrective 
action in the fund; and
			(F)  any additional factors the commission 
considers relevant; and  
		(4)  criteria under which the commission may determine 
the level at which corrective action is considered to be complete.
	Sec. 374.052.  FACILITY RETROFITTING.  (a)  The commission 
by rule shall require dry cleaning facilities operating on or 
before January 1, 2004, to implement the performance standards 
adopted under Section 374.053 not later than January 1, 2006.
	(b)  The commission by rule may exempt businesses whose 
annual gross receipts are $200,000 or less from the requirements of 
Subsection (a) on the basis of financial hardship.
	(c)  This section expires January 1, 2007.                              
	Sec. 374.053.  PERFORMANCE STANDARDS FOR NEW DRY CLEANING 
FACILITIES.  (a)  The commission by rule shall adopt performance 
standards for a new dry cleaning facility.
	(b)  Rules adopted under this section must allow for the use 
of new technologies as they become available.
	(c)  Rules adopted under this section must require:                     
		(1)  proper storage and disposal of wastes generated at 
the facility that contain any quantity of dry cleaning solvent;
		(2)  compliance with emissions standards for hazardous 
air pollutants for perchloroethylene dry cleaning facilities 
adopted by the United States Environmental Protection Agency on 
September 22, 1993;
		(3)  dikes or other containment structures to be:                      
			(A)  installed around each dry cleaning unit that 
uses chlorinated dry cleaning solvents and each storage area for 
chlorinated dry cleaning solvents or waste; and
			(B)  capable of containing any leak, spill, or 
release of dry cleaning solvent;
		(4)  all diked floor surfaces on which any chlorinated 
dry cleaning solvent may leak, spill, or otherwise be released to be 
made of epoxy, steel, or another material impervious to dry 
cleaning solvents; and
		(5)  all chlorinated dry cleaning solvents to be 
delivered to dry cleaning facilities by means of closed, 
direct-coupled delivery systems, when those systems have become 
generally available.
	(d)  Rules adopted under this section shall ensure that 
wastewater from a dry cleaning unit or discharge of dry cleaning 
solvent is not discharged to a sanitary sewer, to a septic tank, or 
to water of this state.
	Sec. 374.054.  COMPLETION CRITERIA.  (a)  In determining 
whether a corrective action is complete, the commission shall 
consider the factors listed under Section 374.051(b)(3) and:
		(1)  individual site characteristics, including 
natural remediation processes;
		(2)  state water quality standards;                                    
		(3)  whether deviation from state water quality 
standards or from established criteria is appropriate, based on the 
degree to which the desired remediation level is achievable and may 
be reasonably and cost-effectively implemented; and
		(4)  additional factors the commission considers 
relevant.           
	(b)  In considering a deviation under Subsection (a)(3), a 
deviation from a state water quality standard may not result in the 
application of a standard that is more stringent than the 
applicable standard.
	Sec. 374.055.  CRITERIA FOR ADMINISTRATION OF CHAPTER.  (a)  
The commission shall administer this chapter in accordance with 
this section.
	(b)  To the maximum extent possible, the commission shall 
deal with contamination from dry cleaning facilities by using money 
in the fund.
	(c)  The commission shall use money from the fund as sites 
are discovered in the normal course of the commission's business.
	(d)  The commission shall consider interim or early 
corrective action that may result in an overall reduction of risk to 
human health and the environment and in the reduction of total costs 
of corrective action at a site.
	(e)  The commission, in its discretion, may use innovative 
technology to perform corrective action.
	(f)  To the maximum extent possible, money in the fund must 
be used to address contamination resulting from releases.
	Sec. 374.056.  REPORT TO GOVERNOR AND LEGISLATURE.  On or 
before December 1 of each even-numbered year, the executive 
director shall submit to the governor, lieutenant governor, speaker 
of the house of representatives, and members of the appropriate 
standing committees of the senate and the house of representatives 
a report regarding:
		(1)  money deposited to the credit of the fund during 
the two previous fiscal years and the sources of the receipts;
		(2)  disbursements from the fund during the two 
previous fiscal years and the purposes of the disbursements;
		(3)  the extent of corrective action taken under this 
chapter during the two previous fiscal years; and
		(4)  the ranking of sites on the date the report is 
made.            
[Sections 374.057-374.100 reserved for expansion]
SUBCHAPTER C.  FINANCIAL PROVISIONS
	Sec. 374.101.  DRY CLEANING FACILITY RELEASE FUND.  (a)  The 
dry cleaning facility release fund is an account in the general 
revenue fund.
	(b)  The fund consists of money from:                                   
		(1)  proceeds from the charges and fees imposed by this 
chapter;     
		(2)  interest attributable to investment of money in 
the fund;       
		(3)  money recovered by the state under this chapter, 
including any money paid under an agreement with the commission or 
as civil penalties; and
		(4)  money received by the commission in the form of 
gifts, grants, reimbursements, or appropriations from any source 
intended to be used for the purposes of this chapter.
	(c)  Money in the fund may be appropriated only to the 
commission for the purposes of this chapter, including any 
administrative duty imposed on the commission under this chapter.
	(d)  Before September 1, 2005, the commission may annually 
spend for administrative and start-up expenses incurred in 
fulfilling its duties under this chapter an amount of money from the 
fund not to exceed 15 percent of the amount of money credited to the 
fund in the same fiscal year as the expenditures.  Beginning on 
September 1, 2005, the commission may spend from the fund for those 
expenses an amount not to exceed 10 percent of the amount of money 
credited to the fund in the same fiscal year.
	(e)  Subject to the limitations of this chapter, the 
commission shall use only money from the fund to pay for all 
expenses incurred by the commission in fulfilling its duties under 
this chapter.
	(f)  Section 403.095, Government Code, does not apply to 
money deposited to the fund.
	Sec. 374.102.  REGISTRATION; FEE; POSTING.  (a)  Each owner 
of an operating dry cleaning facility or dry cleaning drop station 
shall register with the commission on a form provided by the 
commission.
	(b)  Except for a carbon dioxide facility, the registration 
must be accompanied by a fee of:
		(1)  $250 for:                                                         
			(A)  a dry cleaning facility with gross annual 
receipts of $100,000 or less; or
			(B)  a dry cleaning facility designated as 
nonparticipating under Section 374.104;
		(2)  $1,000 for a dry cleaning drop station, except 
that the fee for a drop station is $250 if the drop station is not 
owned by the owner of the dry cleaning facility; or
		(3)  $2,500 for a dry cleaning facility with gross 
annual receipts of more than $100,000.
	(c)  Fees paid under this section shall be deposited to the 
credit of the fund.
	(d)  The owner of a dry cleaning facility shall post the 
owner's registration number, in a manner prescribed by the 
commission, in the public area of each of the owner's operating dry 
cleaning facilities.
	(e)  Registration under this section must be renewed 
annually.        
	Sec. 374.103.  FEE ON PURCHASE OF DRY CLEANING SOLVENT; 
DISPOSITION OF PROCEEDS.  (a)  Except as provided by Subsection (b) 
and Section 374.104(d), a fee of $15 per gallon is imposed on the 
purchase of the dry cleaning solvent perchloroethylene and $5 per 
gallon on the purchase of any other dry cleaning solvent by an owner 
of a dry cleaning facility.  The person who distributes the solvent 
shall pay the fee to the commission.
	(b)  Subsection (a) does not apply to:                                  
		(1)  an owner who has never used or allowed the use of 
the dry cleaning solvent perchloroethylene at a dry cleaning 
facility in this state; or
		(2)  the purchase of the dry cleaning solvent carbon 
dioxide.        
	(c)  A person who distributes dry cleaning solvent may not 
sell the solvent for use in a dry cleaning facility unless the 
person first obtains and records the registration number of the 
owner of the facility.
	(d)  The commission shall adopt any procedures needed for the 
collection, administration, and enforcement of the fee imposed by 
this section and shall deposit all remitted fees to the credit of 
the fund.
	Sec. 374.104.  OPTION NOT TO PARTICIPATE IN FUND BENEFITS.  
(a) The owner of a dry cleaning facility may file with the 
commission an option for the facility not to participate in fund 
benefits.
	(b)  An option not to participate must be filed before 
January 1, 2004.
	(c)  The commission shall designate a facility as 
nonparticipating if the owner demonstrates, at the owner's expense 
and in accordance with commission rules, that the owner has never 
used or allowed the use of the dry cleaning solvent 
perchloroethylene at any dry cleaning facility in this state.  The 
owner must also agree that perchloroethylene will not be used as a 
dry cleaning solvent at the facility.
	(d)  A facility designated as nonparticipating is not 
subject to the fees on dry cleaning solvents, other than 
perchloroethylene, under Section 374.103.
	(e)  On payment of the registration fee, the commission shall 
issue a specially marked registration document to the owner of a 
nonparticipating facility.  The owner shall post the registration 
document in the public area of the facility.
	(f)  After a facility is designated as nonparticipating:                
		(1)  the owner of the facility is not eligible for any 
expenditures of money from the fund or other benefits of 
participation under this chapter for that facility; and
		(2)  that facility may not later become a participating 
facility.    
	Sec. 374.105.  NEW DRY CLEANING FACILITY BOND; EXCEPTION.  
(a)  The owner of a dry cleaning facility for which the owner has 
filed with the commission under Section 374.104 an option not to 
participate and which begins operation on or after September 1, 
2003, shall furnish to the commission a bond or other financial 
assurance authorized by the commission in the amount of $500,000 to 
guarantee costs of any future corrective action that may be 
required at the facility.
	(b)  The commission shall return the bond posted under this 
section on the second anniversary of the date of closing of the dry 
cleaning facility for use as a dry cleaning facility if the 
commission has certified that corrective action is not required at 
the facility.
	(c)  This section does not apply to a carbon dioxide facility 
that begins operation on or after September 1, 2003.
[Sections 374.106-374.150 reserved for expansion]
SUBCHAPTER D.  RESPONSE TO RELEASE; CORRECTIVE ACTION
	Sec. 374.151.  RESPONSE TO RELEASE.  (a)  A person may not 
intentionally allow a release.
	(b)  A person who knows of a release over a 24-hour period of  
more than one quart of a chlorinated dry cleaning solvent or of more 
than one gallon of a non-chlorinated dry cleaning solvent shall:
		(1)  immediately contain and control the release; and                  
		(2)  notify the commission of the release before the 
expiration of 48 hours after the person learns of the release.
	Sec. 374.152.  INVESTIGATION AND ASSESSMENT OF RELEASE; 
EMERGENCY ACTION.  (a)  If a release or a potential release poses a 
threat to human health or to the environment, the commission shall:
		(1)  investigate and assess the extent of the resulting 
contamination; and
		(2)  take necessary or appropriate emergency action to 
ensure that human health or safety is not threatened by the release 
or the potential release.
	(b)  Emergency action under Subsection (a)(2) may include 
the treatment, restoration, or replacement of drinking water 
supplies.
	Sec. 374.153.  CORRECTIVE ACTION.  (a)  Subject to 
Subchapter E, the commission shall take corrective action for a 
release from a dry cleaning facility that results in contamination, 
including contamination that may have moved off the dry cleaning 
facility.
	(b)  Corrective action includes the cleanup of affected 
soil, groundwater, or surface water using the most cost-effective 
method that:
		(1)  is technologically feasible and reliable;                         
		(2)  provides adequate protection of human health and 
the environment; and
		(3)  minimizes, to the extent practical, environmental 
damage.       
	(c)  The commission shall:                                              
		(1)  operate and maintain corrective action;                           
		(2)  monitor releases from a dry cleaning facility, 
including contamination that may have moved off the dry cleaning 
facility;
		(3)  pay the reasonable costs incurred by the 
commission in providing field and laboratory services; and
		(4)  pay the reasonable costs of restoring property, as 
nearly as practicable, to the conditions that existed before the 
activities associated with:
			(A)  the investigation of a release;                                  
			(B)  a cleanup; or                                                    
			(C)  related corrective action.                                       
	(d)  The commission shall ensure the removal and proper 
disposal of wastes generated by a release.
	(e)  Except as provided by Subchapter E, the commission shall 
pay the  costs of corrective action conducted under this subchapter 
by the commission or by other entities approved by the commission, 
regardless of whether the corrective action is included in a 
corrective action plan.
	Sec. 374.154.  RANKING OF CONTAMINATED DRY CLEANING SITES.  
(a)  For a contaminated dry cleaning site that does not require 
emergency action under Section 374.152, the commission shall assign 
a rank for the site relative to other sites previously ranked and 
awaiting corrective action based on information contained in the 
application for ranking.
	(b)  The following persons are eligible to apply for a site 
to be ranked under Subsection (a):
		(1)  a person who is an owner of the dry cleaning 
facility; and      
		(2)  a person who is and has been an owner of the real 
property on which the facility is located for not less than five 
years as of the date the application for ranking is submitted.
	(c)  If the applicant for ranking:                                      
		(1)  is not an owner of the real property, the 
application must include proof that an owner of the real property 
has been notified of the application; or
		(2)  is an owner of the real property and the facility 
is leased, the application must include proof that a lessee has been 
notified of the application.
	(d)  The application for ranking must contain information 
and evidence required by commission rule to aid in ranking.  The 
information and evidence required may include:
		(1)  water or soil samples;                                            
		(2)  analyses of the water or soil samples;                            
		(3)  hydrogeologic information from the contaminated 
site;           
		(4)  information concerning the site's proximity to a 
private or public water supply; and
		(5)  other information or evidence the commission 
considers necessary.
	(e)  The costs incurred by an applicant in collecting the 
information and evidence under Subsection (d) shall be credited 
against the deductible payable by the applicant under Section 
374.203(d).
	(f)  The commission shall notify the applicant of the 
relative ranking the commission assigns the applicant's site on or 
before the 90th day after the date the application is received by 
the commission.
	Sec. 374.155.  POWER TO MODIFY COMMISSION RANKINGS OR 
POSTPONE CORRECTIVE ACTIONS.  The commission may:
		(1)  modify the ranked status of a site as warranted 
under the system of priorities established under Section 
374.051(b)(3); or
		(2)  postpone temporarily the completion of a 
corrective action for which money from the fund is being used, if 
the postponement is necessary to make money available for 
corrective action at a site with a higher ranking.
	Sec. 374.156.  ENTRY ONTO PROPERTY.  (a)  An authorized 
officer, employee, or agent of the commission, or a person under 
order of or contract with the commission, at reasonable times and on 
written notice to the owner or occupant of any property or premises, 
may enter onto the property or premises to take corrective action if 
the executive director determines that the action is necessary to 
protect the public health or environment.
	(b)  If consent to enter is not granted by the person in 
control of a site that is the subject of a notice under this 
section, the commission may issue an order directing compliance 
with the notice.  The order may be issued only after providing the 
notice and opportunity for consultation that are reasonably 
appropriate under the circumstances.
[Sections 374.157-374.200 reserved for expansion]
SUBCHAPTER E. LIABILITY AND RESPONSIBILITY
	Sec. 374.201.  PROPORTIONATE SHARE OF LIABILITY.  (a) At a 
site with more than one source of contamination, the commission 
may:
		(1)  use money in the fund to pay only for the 
proportionate share of the liability for corrective action costs 
that is attributable to a release or releases from one or more dry 
cleaning facilities; and
		(2)  determine the relative liability of the fund for 
costs of corrective action, expressed as a percentage of the total 
cost of corrective action at a site, whether known or unknown.
	(b)  The commission shall issue an order establishing the 
percentage of liability.  The order is binding and controls the 
obligation of the fund unless amended by the commission.  If an 
appeal from the order is made, the percentage of liability 
established by the order must control for costs incurred while the 
appeal is pending.
	Sec. 374.202.  OWNER RESPONSIBILITY.  (a)  The commission 
may hold an owner responsible for up to 100 percent of the costs of 
corrective action attributable to the owner if the commission 
finds, after notice and an opportunity for a hearing that:
		(1)  requiring the owner to bear the responsibility 
will not prejudice another owner or person who is eligible, under 
this chapter, to have corrective action costs paid by the fund; and
		(2)  the owner:                                                        
			(A)  caused a release by operating practices 
contrary to those generally in use at the time of the release;
			(B)  is in arrears for money owed under this 
chapter, after notice and an opportunity to correct the arrearage;
			(C)  obstructed the efforts of the commission to 
carry out its obligations under this chapter other than by the 
exercise of the owner's legal rights;
			(D)  caused or allowed the release because of a 
material violation of the performance standards established by this 
chapter or the rules adopted by the commission under this chapter; 
or
			(E)  has more than once violated Section 374.151 
or related commission rules.
	(b)  To the extent that an owner is responsible for 
corrective action costs under this subsection, the owner is not 
entitled to the exemption under Section 374.207.
	Sec. 374.203.  LIMITATION ON USE OF FUND FOR CORRECTIVE 
ACTION.  (a)  In this section, "contaminated dry cleaning site" 
means the areal extent of soil or groundwater contamination with 
dry cleaning solvents.
	(b)  The commission may not use money from the fund for the 
payment of costs in excess of $5 million for corrective action at a 
single contaminated dry cleaning site.
	(c)  The commission may not use money from the fund for 
corrective action at a contaminated dry cleaning site unless:
		(1)  the owner applies for the ranking under Section 
374.154 and is not otherwise ineligible for corrective action under 
this chapter; or
		(2)  at the time corrective action is to begin, the real 
property at the site has been under the same ownership for not less 
than five years.
	(d)  The owner of a dry cleaning facility, or other person 
who submits the application for ranking the facility under Section 
374.154, shall pay as a deductible the first $5,000 of corrective 
action costs incurred because of a release from the dry cleaning 
facility.  The commission may take corrective action regardless of 
whether the commission obtains the deductible.
	Sec. 374.204.  LIMITATION ON LIABILITY.  The fund, the 
commission, the executive director, this state, or agents or 
employees of this state may not be held liable for loss of business, 
damages, or taking of property associated with any corrective 
action taken under this chapter.
	Sec. 374.205.  LIMITATION ON USE OF FUND FOR THIRD 
PARTIES.  Money from the fund may not be used to compensate third 
parties for bodily injury or property damage caused by a release, 
other than property damage included in a corrective action plan 
approved by the commission.
	Sec. 374.206.  USE OF OTHER SOURCES OF MONEY.  This chapter 
does not create a liability or responsibility on the part of the 
commission, the executive director, this state, or agents or 
employees of this state to pay any corrective action costs from a 
source other than the fund or to take corrective action if the 
amount of money in the fund is insufficient.
	Sec. 374.207.  ELIGIBLE OWNER EXEMPT FROM CERTAIN CLAIMS.  
If an owner or other person is eligible under this chapter to have 
corrective action costs paid by the fund, an administrative or 
judicial claim may not be made under state law against the owner or 
other person by or on behalf of this state or by any other person, 
except a political subdivision, to compel corrective action or seek 
recovery of the costs of corrective action that result from the 
release.
	Sec. 374.208.  UNAUTHORIZED PAYMENTS.  (a)  The commission 
may pay costs from the fund under this chapter only if the costs 
are:
		(1)  integral to corrective action for a release; or                   
		(2)  required for the administration or enforcement of 
this chapter. 
	(b)  The commission may not spend money from the fund:                  
		(1)  for corrective action at a site contaminated by 
solvents normally used in dry cleaning operations, if the 
contamination did not result from the operation of a dry cleaning 
facility;
		(2)  for corrective action at a site, other than a dry 
cleaning facility, that is contaminated by dry cleaning solvents 
that were released while being transported to or from a dry cleaning 
facility by a person other than the owner of the dry cleaning 
facility or the owner's agents or employees; or
		(3)  for the payment of any costs:                                     
			(A)  associated with a fine or penalty brought 
against a dry cleaning facility owner under state or federal law; or
			(B)  related to corrective action at a dry 
cleaning facility that:  
				(i)  has been included by the United States 
Environmental Protection Agency on the national priorities list; or
				(ii)  is a hazardous waste facility eligible 
for listing on the state registry under Subchapter F, Chapter 361.
[Sections 374.209-374.250 reserved for expansion]
		SUBCHAPTER F.  REVIEW OF ORDERS AND DECISIONS; VIOLATIONS; 
PENALTIES; EXPIRATION
	Sec. 374.251.  REVIEW OF ORDERS AND DECISIONS.  (a)  A person 
affected by an order or decision of the commission under this 
chapter may, on or before the 15th day after the date of service of 
the order or decision, make a written request for a hearing.
	(b)  A person affected by the decision in an administrative 
hearing under Subsection (a) is entitled to judicial review and may 
appeal the decision on or before the 31st day after the date on 
which the decision was rendered.
	Sec. 374.252.  VIOLATIONS; PENALTIES.  A person is subject 
to an administrative penalty under Section 7.0525, Water Code, if 
the person:
		(1)  operates a dry cleaning facility in violation of 
this chapter, rules adopted under this chapter, or orders of the 
commission made under this chapter;
		(2)  prevents or hinders a properly identified 
authorized officer, employee, or agent of the commission, or a 
properly identified person under order of or contract with the 
commission, from entering, inspecting, sampling, or responding to a 
release as authorized by this chapter;
		(3)  knowingly makes any false material statement or 
representation in any record, report, or other document filed, 
maintained, or used for the purpose of compliance with this 
chapter;
		(4)  knowingly destroys, alters, or conceals any record 
that this chapter or rules adopted under this chapter require to be 
maintained; or
		(5)  violates Section 374.151 or related commission 
rules.           
	Sec. 374.253.  EXPIRATION.  (a)  This chapter expires on 
September 1, 2021.
	(b)  A corrective action, including any administrative 
duties associated with the action, for which remediation of a 
contaminated site has begun before September 1, 2021, shall be 
completed in accordance with this chapter using money from the 
fund, to the extent possible, but money may not be collected for or 
added to the fund on or after that date.
	(c)  A corrective action that has not progressed beyond the 
investigative or planning stage on September 1, 2021, may not be 
paid for using money from the fund.
	(d)  Any unobligated money remaining in the fund after the 
completion of all corrective actions under Subsection (b) shall be 
transferred to the general revenue fund to the credit of the 
commission or a successor agency.  The fund is abolished on the date 
of the transfer.
	SECTION 2.  Subchapter C, Chapter 7, Water Code, is amended 
by adding Section 7.0525 to read as follows:
	Sec. 7.0525.  PENALTIES FOR VIOLATIONS RELATED TO CERTAIN 
DRY CLEANING FACILITIES.  (a)  Except as provided by Subsection (b), 
the amount of the penalty for a violation of Section 374.252, Health 
and Safety Code, may not exceed $5,000.
	(b)  The amount of the penalty for a violation of Section 
374.252(a)(1), Health and Safety Code, may not exceed $1,000.
	(c)  In assessing an administrative penalty under this 
section, the commission shall consider, in addition to the factors 
prescribed by Section 7.053, the following factors, if applicable:
		(1)  the extent to which the violation has or may have 
an adverse effect on the environment; and
		(2)  the amount of the reasonable costs incurred by 
this state in detection and investigation of the violation.
	SECTION 3.  (a)  Not later than December 1, 2003, the Texas 
Commission on Environmental Quality shall adopt any rules, 
performance standards, or forms required for the implementation of 
Chapter 374, Health and Safety Code, as added by this Act.
	(b)  Performance standards for new dry cleaning facilities 
under Section 374.053, Health and Safety Code, as added by this Act, 
apply only to a dry cleaning facility first brought into use on or 
after April 1, 2004.
	(c)  The changes in law made by Sections 374.204 and 374.207, 
Health and Safety Code, as added by this Act, apply only to a cause 
of action that accrues on or after January 1, 2004, and before 
September 1, 2021.  A cause of action that accrued before January 1, 
2004, or after September 1, 2021, is subject to the law governing 
the action that was in effect when the action accrued, and that law 
is continued in effect for that purpose.
	(d)  Chapter 374, Health and Safety Code, as added by this 
Act, does not apply to any corrective actions taken by the Texas 
Commission on Environmental Quality at a dry cleaning facility as 
defined by Section 374.001, Health and Safety Code, as added by this 
Act, before the effective date of this Act.
	SECTION 4.  (a)  Except as provided by this section, this Act 
takes effect September 1, 2003.
	(b)  Before January 1, 2005, the Texas Commission on 
Environmental Quality shall limit disbursements from the dry 
cleaning facility release fund to those disbursements allowed by 
Section 374.101(d), Health and Safety Code, as added by this Act.
	(c)  Disbursements from the dry cleaning facility release 
fund for a corrective action taken under Chapter 374, Health and 
Safety Code, as added by this Act, may not begin before January 1, 
2005.
	(d)  Sections 374.056, 374.204, 374.207, and 374.252, Health 
and Safety Code, as added by this Act, take effect January 1, 2004.