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Amend Floor Amendment No. 1 to CSHB 1168 by adding the
following appropriately numbered SECTIONS to the bill and
renumbering subsequent SECTIONS of the bill accordingly:
SECTION ___. Section 247.045, Health and Safety Code, is
amended by amending Subsections (d) and (e) and adding Subsections
(h) and (i) to read as follows:
(d) The attorney general may institute and conduct a suit to
collect a penalty and fees under this section at the request of the
department. If the attorney general fails to notify the department
[take action] within 30 days of referral from the department that
the attorney general will accept the case, the department shall
refer the case to the local district attorney, county attorney, or
city attorney. The district attorney, county attorney, or city
attorney shall file suit in a district court to collect and retain
the penalty.
(e) Investigation and attorney's fees may not be assessed or
collected by or on behalf of the department or other state agency
unless [the department or other state agency assesses and collects]
a penalty described under this chapter is assessed.
(h) If a person who is liable under this section fails to pay
any amount the person is obligated to pay under this section, the
state may seek satisfaction from any owner, other controlling
person, or affiliate of the person found liable. The owner, other
controlling person, or affiliate may be found liable in the same
suit or in another suit on a showing by the state that the amount to
be paid has not been paid or otherwise legally discharged. The
department by rule may establish a method for satisfying an
obligation imposed under this section from an insurance policy,
letter of credit, or other contingency fund.
(i) In this section, "affiliate" means:
(1) with respect to a partnership other than a limited
partnership, each partner of the partnership;
(2) with respect to a corporation:
(A) an officer;
(B) a director;
(C) a stockholder who owns, holds, or has the
power to vote at least 10 percent of any class of securities issued
by the corporation, regardless of whether the power is of record or
beneficial; and
(D) a controlling individual;
(3) with respect to an individual:
(A) each partnership and each partner in the
partnership in which the individual or any other affiliate of the
individual is a partner; and
(B) each corporation or other business entity in
which the individual or another affiliate of the individual is:
(i) an officer;
(ii) a director;
(iii) a stockholder who owns, holds, or has
the power to vote at least 10 percent of any class of securities
issued by the corporation, regardless of whether the power is of
record or beneficial; and
(iv) a controlling individual;
(4) with respect to a limited partnership:
(A) a general partner; and
(B) a limited partner who is a controlling
individual;
(5) with respect to a limited liability company:
(A) an owner who is a manager as described by the
Texas Limited Liability Company Act (Article 1528n, Vernon's Texas
Civil Statutes); and
(B) each owner who is a controlling individual;
and
(6) with respect to any other business entity, a
controlling individual.
SECTION ___. The change in law made to Section 247.045,
Health and Safety Code, by this Act applies only to a violation that
occurs on or after the effective date of this Act. A violation
occurs before the effective date of this Act if any element of the
violation occurs before that date. A violation that occurs before
the effective date of this Act is covered by the law in effect when
the violation occurred, and the former law is continued in effect
for that purpose.
SECTION ___. The change in law made to Section 247.045,
Health and Safety Code, by this Act takes effect September 1, 2007.