78R2255 SGA-D

By:  Flores                                                       H.B. No. 2252



A BILL TO BE ENTITLED

AN ACT

relating to exemptions for certain individuals from cost recovery 
actions and liens placed on homesteads by the Texas Commission on 
Environmental Quality.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 361.181(c), Health and Safety Code, is 
amended to read as follows:
	(c)  In this subchapter:                                                
		(1)  "Facility" [, "facility"] means any building, 
structure, installation, equipment, pipe, or pipeline (including 
any pipe into a sewer or publicly owned treatment works, well, pit, 
pond, lagoon, impoundment, ditch, landfill, storage container, 
motor vehicle, rolling stock, or aircraft), or any site or area 
where a hazardous substance has been deposited, stored, disposed 
of, or placed or otherwise come to be located.  The term does not 
include any consumer product in consumer use or any vessel.
		(2)  "Homestead" has the  meaning designated by Section 
51, Article XVI, Texas Constitution.
	SECTION 2.  Section 361.194, Health and Safety Code, is 
amended by amending Subsection (a) and adding Subsection (a-1) to 
read as follows:
	(a)  Except as provided by Subsection (a-1), in [In] addition 
to all other remedies available to the state under this chapter or 
other law, all remediation costs for which a person is liable to the 
state constitute a lien in favor of the state on the real property 
and the rights to the real property that are subject to or affected 
by a remedial action.  This provision is cumulative of other 
remedies available to the state under this chapter.
	(a-1) Remediation costs for which a person would otherwise be 
liable to the state under this chapter do not constitute a lien in 
favor of the state against an individual's homestead that is the 
individual's only significant asset if the homestead:
		(1)  includes the facility subject to or affected by a 
remedial action;
		(2)  is occupied by the individual as a home; and                      
		(3)  has a fair market value of $250,000 or less.                      
	SECTION 3.  Section 361.197, Health and Safety Code, is 
amended by adding Subsection (e) to read as follows:
	(e)  The commission may not file a cost recovery action under 
this section against an individual if the individual's only 
significant asset is a homestead that:
		(1)  includes the facility subject to or affected by a 
remedial action;
		(2)  is occupied by the individual as a home; and                      
		(3)  has a fair market value of $250,000 or less.                      
	SECTION 4.  Section 361.201, Health and Safety Code, is 
amended by adding Subsections (d) and (e) to read as follows:
	(d)  The commission shall determine whether a potentially 
responsible party is financially capable of conducting any 
necessary remediation studies or remedial action if the responsible 
party is an individual whose homestead includes the facility 
subject to or affected by a remedial action.
	(e)  The commission by rule shall adopt criteria for 
determining the financial capability of an individual under 
Subsection (d).  The rules must provide that the value of the 
individual's homestead may not be included in the total amount of 
the individual's assets if:
		(1)  the individual is occupying the homestead as a 
home; and        
		(2)  the fair market value of the homestead is $250,000 
or less.     
	SECTION 5.  (a) The change in law made by Sections 2 and 3 of 
this Act apply to a lien affidavit prepared under Section 361.194, 
Health and Safety Code, or a cost recovery action filed under 
Section 361.197, Health and Safety Code, by the Texas Commission on 
Environmental Quality to recover money spent by the Texas 
Commission on Environmental Quality for a hazardous waste 
remediation project that is completed under Subchapter F, Chapter 
361, Health and Safety Code, on or after the effective date of this 
Act.
	(b)  The change in law made by Section 4 of this Act applies 
to a potential remediation project for which a remedial 
investigation or feasibility study under Section 361.185, Health 
and Safety Code, begins on or after the effective date of this Act.
	(c)  Not later than December 1, 2003, the Texas Commission on 
Environmental Quality shall adopt rules to implement the changes in 
law made by Sections 361.181, 361.194, 361.197, and 361.201, Health 
and Safety Code, as amended by this Act.
	SECTION 6.  This Act takes effect September 1, 2003.