S.B. No. 1604
 
 
 
 
AN ACT
  relating to responsibilities of certain state agencies concerning
  radioactive substances; imposing fees and surcharges; providing
  administrative and civil penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 401.003, Health and Safety Code, is
  amended by amending Subdivisions (2), (4), (5), and (6) and by
  adding Subdivision (12-a) to read as follows:
               (2)  "Board" means the executive commissioner of the
  Health and Human Services Commission [Texas Board of Health].
               (4)  "Commission" means the Texas [Natural Resource
  Conservation] Commission on Environmental Quality.
               (5)  "Commissioner" means the commissioner of state 
  [public] health services.
               (6)  "Department" means the [Texas] Department of State 
  Health Services or other department designated by the executive
  commissioner of the Health and Human Services Commission.
               (12-a)  "Gross receipts" includes, with respect to an
  entity or affiliated members, owners, shareholders, or limited or
  general partners, all receipts from the entity's disposal
  operations in Texas licensed under this chapter including any
  bonus, commission, or similar payment received by the entity from a
  customer, contractor, subcontractor, or other person doing
  business with the entity or affiliated members, owners,
  shareholders, or limited or general partners. This term does not
  include receipts from the entity's operations in Texas, or
  affiliated members, owners, shareholders, or limited or general
  partners, for capital reimbursements, bona fide storage and
  processing, and federal or state taxes or fees on waste received
  uniquely required to meet the specifications of a license or
  contract. The commission may promulgate rules in establishing the
  criteria for determining gross receipts consistent with the
  parameters of this definition.
         SECTION 2.  Subsections (a) and (b), Section 401.011, Health
  and Safety Code, are amended to read as follows:
         (a)  The department is the Texas Radiation Control Agency.
  The department has jurisdiction over activities and substances
  regulated under this chapter except as provided by Subsection (b)
  and Subchapters E, F, G, and K.
         (b)  The commission has jurisdiction to regulate and
  license:
               (1)  the disposal of radioactive substances;
               (2)  the processing or storage of low-level radioactive
  waste or naturally occurring radioactive material waste received
  from other persons, except oil and gas NORM;
               (3)  the recovery or processing of source material in
  accordance with Subchapter G;
               (4)  the processing of by-product material as defined
  by Section 401.003(3)(B); and
               (5)  sites for the disposal of:
                     (A)  low-level radioactive waste;
                     (B)  by-product material; or
                     (C)  naturally occurring radioactive material
  waste [except by-product material defined by Section
  401.003(3)(B)].
         SECTION 3.  Section 401.104, Health and Safety Code, is
  amended by amending Subsection (b) and adding Subsection (f) to
  read as follows:
         (b)  Except as provided by Subsection (e), the commission by
  rule shall provide for licensing for the disposal of radioactive
  substances [material except for the disposal of by-product material
  defined by Section 401.003(3)(B).   The department by rule shall
  provide for licensing the disposal of by-product material defined
  by Section 401.003(3)(B)].
         (f)  A separate commercial storage and processing license
  may be issued for a site also licensed for disposal under this
  chapter.
         SECTION 4.  Subsection (a), Section 401.106, Health and
  Safety Code, is amended to read as follows:
         (a)  The board or commission by rule may exempt a source of
  radiation or a kind of use or user from the licensing or
  registration requirements provided by this chapter and under the
  agency's jurisdiction if the board or commission finds that the
  exemption of that source of radiation or kind of use or user will
  not constitute a significant risk to the public health and safety
  and the environment.
         SECTION 5.  Section 401.108, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.108.  FINANCIAL QUALIFICATIONS. (a)  Before a
  license is issued or renewed by the commission, the applicant shall
  demonstrate to the commission that the applicant is financially
  qualified to conduct the licensed activity, including any required
  decontamination, decommissioning, reclamation, and disposal, by
  posting security acceptable to the commission. [The board by rule
  shall require an applicant to demonstrate to the department that
  the applicant is financially qualified to conduct the licensed
  activity, including any required decontamination, decommissioning,
  reclamation, and disposal, before the department issues or renews a
  license.]
         (b)  A license holder shall submit to the department or
  commission, as appropriate, at intervals required by board or
  commission rules or the license, proof that the license holder has
  updated, as appropriate, the security posted under Subsection (a)
  [of the license holder's financial qualifications].
         (c)  The [department or] commission at regular intervals not
  to exceed five years shall reevaluate [every five years] the
  qualifications and security provided by a license holder under
  Subchapter F or Subchapter G. The reevaluation may coincide with
  license renewal procedures if renewal and reevaluation occur in the
  same year.
         SECTION 6.  Subsection (b), Section 401.109, Health and
  Safety Code, is amended to read as follows:
         (b)  The [department or] commission shall require a holder of
  a license that authorizes the disposal of radioactive substances 
  [low-level radioactive waste as provided by Subchapter F] to
  provide security acceptable to the commission [agency] to assure
  performance of the license holder's obligations under this chapter.
         SECTION 7.  Section 401.111, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.111.  CRITERIA FOR CERTAIN UNSUITABLE NEW SITES.
  (a)  The [board and] commission [each], in adopting rules for the
  issuance of licenses under the commission's jurisdiction [their
  respective jurisdictions] for new sites for processing or disposal
  of radioactive substances [low-level radioactive waste] from other
  persons, shall adopt criteria for the designation of unsuitable
  sites, including:
               (1)  flood hazard areas;
               (2)  areas with characteristics of discharge from or
  recharge of a groundwater aquifer system; or
               (3)  areas in which soil conditions make spill cleanup
  impracticable.
         (b)  The [board and] commission [each] shall consult with the
  Texas Water Development Board, the State Soil and Water
  Conservation Board, the Bureau of Economic Geology, and other
  appropriate state agencies in developing proposed rules. The
  [board and] commission [each] by rule shall:
               (1)  require selection of sites in areas in which
  natural conditions minimize potential contamination of surface
  water and groundwater; and
               (2)  prohibit issuance of licenses for unsuitable sites
  as defined by the rules.
         SECTION 8.  Section 401.112, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.112.  LOW-LEVEL RADIOACTIVE WASTE PROCESSING OR
  DISPOSAL LICENSE APPLICATION AND CONSIDERATIONS. (a)  The
  [department or] commission[, within its jurisdiction], in making a
  licensing decision on a specific license application to process or
  dispose of low-level radioactive waste from other persons, shall
  consider:
               (1)  site suitability, geological, hydrological, and
  meteorological factors, and natural [naturals] hazards;
               (2)  compatibility with present uses of land near the
  site;
               (3)  socioeconomic effects on surrounding communities
  of operation of the licensed activity and of associated
  transportation of low-level radioactive waste;
               (4)  the need for and alternatives to the proposed
  activity, including an alternative siting analysis prepared by the
  applicant;
               (5)  the applicant's qualifications, including:
                     (A)  financial and technical qualifications and
  compliance history under the method for evaluation of compliance
  history developed by the commission under Section 5.754, Water
  Code, for an application to the commission; and
                     (B)  the demonstration of financial
  qualifications under Section 401.108 [or the requirements of
  Section 401.110(b) for an application to the department];
               (6)  background monitoring plans for the proposed site;
               (7)  suitability of facilities associated with the
  proposed activities;
               (8)  chemical, radiological, and biological
  characteristics of the low-level radioactive waste and waste
  classification under Section 401.053;
               (9)  adequate insurance of the applicant to cover
  potential injury to any property or person, including potential
  injury from risks relating to transportation;
               (10)  training programs for the applicant's employees;
               (11)  a monitoring, record-keeping, and reporting
  program;
               (12)  spill detection and cleanup plans for the
  licensed site and related to associated transportation of low-level
  radioactive waste;
               (13)  decommissioning and postclosure care plans;
               (14)  security plans;
               (15)  worker monitoring and protection plans;
               (16)  emergency plans; and
               (17)  a monitoring program for applicants that includes
  prelicense and postlicense monitoring of background radioactive
  and chemical characteristics of the soils, groundwater, and
  vegetation.
         (b)  An applicant for the specific license must submit with
  the application information necessary for the commission [issuing
  agency] to consider the factors under Subsection (a).
         (c)  The [board and] commission [each within its
  jurisdiction] by rule shall provide specific criteria for the
  different types of licensed low-level radioactive waste activities
  for the listed factors and may include additional factors and
  criteria that the [board or] commission[, as appropriate,]
  determines necessary for full consideration of a license.
         SECTION 9.  Subsections (a) and (b), Section 401.113, Health
  and Safety Code, are amended to read as follows:
         (a)  Before a hearing under Section 401.114 begins, the
  commission [agency holding the hearing] shall prepare or have
  prepared a written analysis of the effect on the environment of a
  proposed licensed activity that the commission [agency] determines
  has a significant effect on the human environment.
         (b)  The commission [agency] shall make the analysis
  available to the public not later than the 31st day before the date
  of a hearing under Section 401.114.
         SECTION 10.  Section 401.114, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.114.  NOTICE AND HEARING. (a)  Before the
  [department or] commission[, within its jurisdiction,] grants or
  renews a license to process or dispose of low-level radioactive
  waste from other persons, the commission [agency] shall give notice
  and shall provide an opportunity for a public hearing in the manner
  provided by the commission's [agency's] formal hearing procedure
  and Chapter 2001, Government Code.
         (b)  In addition to other notice, the commission [agency]
  shall publish notice of the hearing in the manner provided by
  Chapter 313, Government Code, in the county in which the proposed
  facility is to be located. The notice shall state the subject and
  the time, place, and date of the hearing.
         (c)  The commission [agency] shall mail, by certified mail in
  the manner provided by the commission's [agency's] rules, written
  notice to each person who owns property adjacent to the proposed
  site. The notice must be mailed not later than the 31st day before
  the date of the hearing and must include the same information that
  is in the published notice. If true, the commission [agency] or the
  applicant must certify that the notice was mailed as required by
  this subsection, and at the hearing the certificate is conclusive
  evidence of the mailing.
         SECTION 11.  Section 401.117, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.117.  CONSTRUCTION LIMITATION. The [department or]
  commission shall prohibit major construction relating to
  activities to be permitted under a license issued by the commission
  [agency] to process or dispose of low-level radioactive waste from
  other persons until the requirements in Sections 401.113 and
  401.114 are completed.
         SECTION 12.  Subsection (a), Section 401.202, Health and
  Safety Code, is amended to read as follows:
         (a)  The commission [or department, within its respective
  jurisdiction,] may grant, deny, renew, revoke, suspend, or withdraw
  licenses for the disposal of low-level radioactive waste from other
  persons and for the processing of that waste.
         SECTION 13.  Section 401.262, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.262.  MANAGEMENT OF CERTAIN BY-PRODUCT MATERIAL.
  The commission [department] has sole and exclusive authority to
  assure that processing and disposal sites are closed and that
  by-product material is managed and disposed of in compliance with:
               (1)  the federal commission's applicable standards; and
               (2)  closure criteria the federal commission and the
  United States Environmental Protection Agency have determined are
  protective of human health and safety and the environment.
         SECTION 14.  Section 401.2625, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.2625.  LICENSING AUTHORITY. The commission
  [commissioner] has sole and exclusive authority to grant, deny,
  renew, revoke, suspend, amend, or withdraw licenses for source
  material recovery and processing or for storage, processing, or 
  disposal of by-product material.
         SECTION 15.  Subsections (a) and (c) through (f), Section
  401.263, Health and Safety Code, are amended to read as follows:
         (a)  If the commission [department] is considering the
  issuance, renewal, or amendment of a license to process materials
  that produce by-product materials or a license to dispose of
  by-product material and the commission [department] determines
  that the licensed activity will have a significant impact on the
  human environment, the commission [department] shall prepare or
  have prepared a written environmental analysis.
         (c)  The commission [department] shall give notice of the
  analysis as provided by commission [board] rule and shall make the
  analysis available to the public for written comment not later than
  the 31st day before the date of the hearing on the license.
         (d)  After notice is given, the commission [department]
  shall provide an opportunity for written comments by persons
  affected.
         (e)  The analysis shall be included as part of the record of
  the commission's [department's] proceedings.
         (f)  The commission [board] by rule shall prohibit major
  construction with respect to an activity that is to be licensed
  until the requirements of Subsections (a), (b), (c), and (e) are
  completed.
         SECTION 16.  Subsections (a), (c), and (d), Section 401.264,
  Health and Safety Code, are amended to read as follows:
         (a)  The commission [department] on its own motion may or on
  the written request of a person affected shall provide an
  opportunity for a public hearing on an application over which the
  commission [department] has jurisdiction to determine whether to
  issue, renew, or amend a license to process materials that produce
  by-product materials or a license to dispose of by-product
  materials in the manner provided by Chapter 2001, Government Code,
  and permit appearances with or without counsel and the examination
  and cross-examination of witnesses under oath.
         (c)  The commission [department] shall make a record of the
  proceedings and provide a transcript of the hearing on request of,
  and payment for, the transcript or provision of a sufficient
  deposit to assure payment by any person requesting the transcript.
         (d)  The commission [department] shall provide an
  opportunity to obtain a written determination of action to be
  taken. The determination must be based on evidence presented to the
  commission [department] and include findings. The written
  determination is available to the public.
         SECTION 17.  Section 401.265, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.265.  CONDITIONS OF CERTAIN BY-PRODUCT MATERIAL
  LICENSES. The commission [department] shall prescribe conditions
  in a radioactive substances [material] license issued, renewed, or
  amended for an activity that results in production of by-product
  material to minimize or, if possible, eliminate the need for
  long-term maintenance and monitoring before the termination of the
  license, including conditions that:
               (1)  the license holder will comply with the applicable
  decontamination, decommissioning, reclamation, and disposal
  standards that are prescribed by the commission [board] and that
  are compatible with the federal commission's standards for sites at
  which those ores were processed and at which the by–product
  material is deposited; and
               (2)  the ownership of a disposal site, other than a
  disposal well covered by a permit issued under Chapter 27, Water
  Code, and the by-product material resulting from the licensed
  activity are transferred, subject to Sections 401.266-401.269, to:
                     (A)  the state; or
                     (B)  the federal government if the state declines
  to acquire the site, the by-product material, or both the site and
  the by-product material.
         SECTION 18.  Subsection (a), Section 401.266, Health and
  Safety Code, is amended to read as follows:
         (a)  The commission [board] by rule or [order or the
  department by] order may require that before a license covering
  land used for the disposal of by-product material is terminated,
  the land, including any affected interests in the land, must be
  transferred to the federal government or to the state unless:
               (1)  the federal commission determines before the
  license terminates that the transfer of title to the land and the
  by-product material is unnecessary to protect the public health,
  safety, or welfare or to minimize danger to life or property; or
               (2)  the land is held in trust by the federal government
  for an Indian tribe, is owned by an Indian tribe subject to a
  restriction against alienation imposed by the federal government,
  is owned by the federal government, or is owned by the state.
         SECTION 19.  Section 401.267, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.267.  ACQUISITION AND SALE OF CERTAIN BY-PRODUCT
  MATERIALS AND SITES. (a)  The commission [department] may acquire
  by-product material and fee simple title in land, affected mineral
  rights, and buildings at which that by-product material is disposed
  of and abandoned so that the by-product material and property can be
  managed in a manner consistent with protecting public health,
  safety, and the environment.
         (b)  The commission [department] may sell land acquired
  under this section at the land's fair market value after the
  commission [department] has taken corrective action to restore the
  land to a condition that does not compromise the public health or
  safety or the environment. The General Land Office shall negotiate
  and close a transaction under this subsection on behalf of the
  commission [department] using procedures under Section 31.158(c),
  Natural Resources Code. Proceeds from the transaction shall be
  deposited in the Texas capital trust fund.
         SECTION 20.  Section 401.269, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.269.  MONITORING, MAINTENANCE, AND EMERGENCY
  MEASURES. (a)  The commission [department] may undertake
  monitoring, maintenance, and emergency measures in connection with
  by-product material and property for which it has assumed custody
  under Section 401.267 that are necessary to protect the public
  health and safety and the environment.
         (b)  The commission [department] shall maintain the
  by-product material and property transferred to it in a manner that
  will protect the public health and safety and the environment.
         SECTION 21.  Subsections (a), (b), (e), and (f), Section
  401.270, Health and Safety Code, are amended to read as follows:
         (a)  If the commission [department] finds that by-product
  material or the operation by which that by-product material is
  derived threatens the public health and safety or the environment,
  the commission [department] by order may require any action,
  including a corrective measure, that is necessary to correct or
  remove the threat.
         (b)  The commission [department] may issue an emergency
  order to a person responsible for an activity, including a past
  activity, concerning the recovery or processing of source material
  or the disposal of by-product material if it appears that there is
  an actual or threatened release of source material or by-product
  material that presents an imminent and substantial danger to the
  public health and safety or the environment, regardless of whether
  the activity was lawful at the time. The emergency order may be
  issued without notice or hearing.
         (e)  The commission [department] shall use the security
  provided by the license holder to pay the costs of actions that are
  taken or that are to be taken under this section. The commission 
  [department] shall send to the comptroller a copy of its order
  together with necessary written requests authorizing the
  comptroller to:
               (1)  enforce security supplied by the licensee;
               (2)  convert an amount of security into cash, as
  necessary; and
               (3)  disburse from the security in the perpetual care
  account the amount necessary to pay the costs.
         (f)  If an order issued by the commission [department] under
  this section is adopted without notice or hearing, the order shall
  set a time, at least 10 but not more than 30 days following the date
  of issuance of the emergency order, and a place for a hearing to be
  held in accordance with the rules of the commission [board]. As a
  result of this hearing, the commission [department] shall decide
  whether to affirm, modify, or set aside the emergency order. All
  provisions of the emergency order shall remain in force and effect
  during the pendency of the hearing, unless otherwise altered by the
  commission [department].
         SECTION 22.  Subchapter G, Chapter 401, Health and Safety
  Code, is amended by adding Sections 401.271 and 401.272 to read as
  follows:
         Sec. 401.271.  STATE FEE ON RADIOACTIVE SUBSTANCES. (a)  A
  holder of a license issued by the commission under this chapter that
  authorizes the disposal of a radioactive substance from other
  persons shall remit each quarter an amount equal to 10 percent of
  the license holder's gross receipts received from disposal
  operations under a license issued under this chapter that occur
  after the effective date of the Act enacting this section as
  follows:
               (1)  five percent shall be remitted to the comptroller
  for deposit to the credit of the general revenue fund; and
               (2)  five percent shall be remitted to the host county
  in accordance with Sections 401.244(b) and (d).
         (b)  Subsection (a) does not apply to compact waste or
  federal facility waste as defined by Section 401.2005 or industrial
  solid waste as defined by Section 361.003.
         Sec. 401.272.  AUDIT AUTHORITY. The commission may audit a
  license holder's financial records and waste manifest information
  to ensure that the fees imposed under this chapter are accurately
  paid. The license holder shall comply with the commission's
  audit-related requests for information.
         SECTION 23.  Section 401.301, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.301.  LICENSE AND REGISTRATION FEES [COLLECTED BY
  DEPARTMENT]. (a)  The commission and department may collect a fee
  for each license and registration the agency [it] issues.
         (b)  The commission and the board each by rule shall set the
  fee in an amount that may not exceed the actual expenses annually
  incurred to:
               (1)  process applications for licenses or
  registrations;
               (2)  amend or renew licenses or registrations;
               (3)  make inspections of license holders and
  registrants; and
               (4)  enforce this chapter and rules, orders, licenses,
  and registrations under this chapter.
         (c)  The commission and department may collect a fee, in
  addition to the annual license and registration fee, of not less
  than 20 percent of the amount of the annual license and registration
  fee nor more than $10,000 per annum from each licensee or registrant
  who fails to pay the fees authorized by this section.
         (d)  The commission and department may require that each
  person who holds a specific license issued by the agency
  [department] annually pay to the agency [department] an additional
  five percent of the appropriate annual fee set under Subsection
  (b). Fees collected under this subsection shall be deposited to the
  credit of the perpetual care account.  The fees are not refundable.
         (e)  The commission and department shall suspend assessment
  of a fee imposed under Subsection (d) if the amount of fees
  collected under that subsection reaches $500,000.  If the balance
  of fees collected subsequently is reduced to $350,000 or less, the
  commission and department shall reinstitute assessment of the fee
  until the balance reaches $500,000.
         (f)  The commission may assess and collect additional fees
  from the applicant to recover the costs the commission incurs for
  administrative review, technical review, and hearings on the
  application.
         SECTION 24.  Subsection (a), Section 401.302, Health and
  Safety Code, is amended to read as follows:
         (a)  The department, in coordination with the commission,
  may set and collect an annual fee from the operator of each nuclear
  reactor or other fixed nuclear facility in the state that uses
  special nuclear material.
         SECTION 25.  Subsections (c), (e), (f), and (g), Section
  401.305, Health and Safety Code, are amended to read as follows:
         (c)  Money and security in the perpetual care account may be
  administered by the department or commission only for the
  decontamination, decommissioning, stabilization, reclamation,
  maintenance, surveillance, control, storage, and disposal of
  radioactive substances [material] for the protection of the public
  health and safety and the environment under this chapter and for
  refunds under Section 401.303.
         (e)  The department or commission may use money in the
  perpetual care account to pay for measures:
               (1)  to prevent or mitigate the adverse effects of
  abandonment of radioactive substances [materials], default on a
  lawful obligation, insolvency, or other inability by the holder of
  a license issued by the department or commission to meet the
  requirements of this chapter or of department or commission rules;
  and
               (2)  to assure the protection of the public health and
  safety and the environment from the adverse effects of ionizing
  radiation.
         (f)  The department or commission may provide, by the terms
  of a contract or lease entered into between the department or
  commission and any person or by the terms of a license issued by the
  department or commission to any person, for the decontamination,
  closure, decommissioning, reclamation, surveillance, or other care
  of a site or facility subject to department or commission
  jurisdiction under this chapter as needed to carry out the purpose
  of this chapter.
         (g)  The existence of the perpetual care account does not
  make the department or commission liable for the costs of
  decontamination, transfer, transportation, reclamation,
  surveillance, or disposal of radioactive substances [material]
  arising from a license holder's abandonment of radioactive
  substances [material], default on a lawful obligation, insolvency,
  or inability to meet the requirements of this chapter or of
  department or commission rules.
         SECTION 26.  Section 401.343, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.343.  RECOVERY OF SECURITY. (a)  The department or
  commission shall seek reimbursement, either by an order of the
  department or commission or a suit filed by the attorney general at
  the [department's] request of the department or commission, of
  security from the perpetual care account used by the department or
  commission to pay for actions, including corrective measures, to
  remedy spills or contamination by radioactive substances
  [material] resulting from a violation of this chapter relating to
  an activity under the [department's] jurisdiction of the department
  or commission or a violation of a rule, license, registration, or
  order adopted or issued by the department or commission under this
  chapter.
         (b)  On request by the department or commission, the attorney
  general shall file suit to recover security under this section.
         SECTION 27.  The heading to Subchapter K, Chapter 401,
  Health and Safety Code, is amended to read as follows:
  SUBCHAPTER K.  LICENSING AUTHORITY OF TEXAS [NATURAL RESOURCE
  CONSERVATION] COMMISSION ON ENVIRONMENTAL QUALITY AND THE RAILROAD
  COMMISSION OF TEXAS
         SECTION 28.  Subsections (a) and (b), Section 401.412,
  Health and Safety Code, are amended to read as follows:
         (a)  Notwithstanding any other provision of this chapter and
  subject to Sections 401.102 and 401.415, the commission has sole
  and exclusive authority to directly regulate and to grant, deny,
  renew, revoke, suspend, amend, or withdraw licenses for the
  disposal of radioactive substances. [In this subsection,
  "radioactive substance" does not include by-product material as
  defined by Section 401.003(3)(B).]
         (b)  Notwithstanding any other provision of this chapter,
  the commission [commissioner] has the sole and exclusive authority
  to grant, deny, renew, revoke, suspend, amend, or withdraw licenses
  for the recovery and processing of source material or disposal of
  by-product material under Subchapter G.
         SECTION 29.  Section 401.413, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.413.  COMMISSION DISPOSAL LICENSE REQUIRED.  A
  person required by another section of this chapter to obtain a
  license for the disposal of a radioactive substance is required to
  obtain the license from the commission and not from the department.
  [This section does not apply to a person required to obtain a
  license for recovery or processing of source material or for
  recovery, processing, or disposal of by-product material as defined
  by Section 401.003(3)(B).]
         SECTION 30.  Section 401.414, Health and Safety Code, is
  amended to read as follows:
         Sec. 401.414.  MEMORANDA [MEMORANDUM] OF UNDERSTANDING.  The
  Texas [Natural Resource Conservation] Commission on Environmental
  Quality, the Health and Human Services Commission, and the Railroad
  Commission of Texas [and the board of health] by rule shall adopt
  memoranda [a memorandum] of understanding defining their
  respective duties under this chapter.
         SECTION 31.  Section 361.015, Health and Safety Code, is
  amended to read as follows:
         Sec. 361.015.  JURISDICTION: RADIOACTIVE WASTE.  (a)  The
  commission is the state agency under Chapter 401 that licenses and
  regulates radioactive waste storage, processing, and disposal
  activities not preemptively regulated by the federal government.
         (b)  Except as provided by Subsection (a), the Health and
  Human Services Commission, acting through the Department of State
  Health Services or other department as designated by the executive
  commissioner of the Health and Human Services Commission, [The
  Texas Department of Health] is the state agency under Chapter 401
  that regulates radioactive waste activities[, excluding disposal,]
  not preemptively regulated by the federal government.
         SECTION 32.  Subchapter D, Chapter 27, Water Code, is
  amended by adding Section 27.0513 to read as follows:
         Sec. 27.0513.  AREA PERMITS AND PRODUCTION AREAS FOR URANIUM
  MINING. (a)  The commission may issue a permit pursuant to Section
  27.011 that authorizes the construction and operation of two or
  more similar injection wells within a specified area for mining of
  uranium. An application for a new permit issued pursuant to Section
  27.011, a major amendment of such a permit, or a renewal of such a
  permit for mining of uranium is subject to the public notice
  requirements and opportunity for contested case hearing provided
  under Section 27.018.
         (b)  For a permit for mining of uranium issued on or after
  September 1, 2007, pursuant to Section 27.011, the term of the
  permit to authorize injection for recovery of uranium shall be 10
  years. The holder of a permit for mining of uranium issued by the
  commission before September 1, 2007, pursuant to Section 27.011,
  must submit an application to the commission before September 1,
  2012, for renewal of the permit to authorize construction and
  operation of injection wells for mining of uranium. Authority to
  construct or operate injection wells for recovery of uranium under
  a permit issued before September 1, 2007, pursuant to Section
  27.011, expires on September 1, 2012, if an application for renewal
  of the permit is not submitted to the commission before September 1,
  2012. Expiration of authority under this subsection does not
  relieve the permit holder from obligations under the permit or
  applicable rules, including obligations to restore groundwater and
  to plug and abandon wells in accordance with the requirements of the
  permit and applicable rules.
         (c)  The commission may issue a holder of a permit issued
  pursuant to Section 27.011 for mining of uranium an authorization
  that allows the permit holder to conduct mining and restoration
  activities in production zones within the boundary established in
  the permit. The commission by rule shall establish application
  requirements, technical requirements, including the methods for
  determining restoration table values, and procedural requirements
  for any authorization.
         (d)  Notwithstanding Sections 5.551, 5.556, 27.011, and
  27.018, an application for an authorization submitted after
  September 1, 2007, is an uncontested matter not subject to a
  contested case hearing or the hearing requirements of Chapter 2001,
  Government Code, unless the authorization seeks any of the
  following:
               (1)  an amendment to a restoration table value;
               (2)  the initial establishment of monitoring wells for
  any area covered by the authorization, including the location,
  number, depth, spacing, and design of the monitoring wells, unless
  the executive director uses the recommendation of an independent
  third-party expert chosen by the commission; or
               (3)  an amendment to the type or amount of bond required
  for groundwater restoration or by Section 27.073 to assure that
  there are sufficient funds available to the state for groundwater
  restoration or the plugging of abandoned wells in the area by a
  third-party contractor.
         (e)  The executive director may use an independent
  third-party expert if:
               (1)  the expert meets the qualifications set by
  commission rules for such experts;
               (2)  the applicant for the authorization agrees to pay
  the costs for the work of the expert; and
               (3)  the applicant for the authorization is not
  involved in the selection of the expert or the direction of the work
  of the expert.
         (f)  An application seeking approval under Subsections
  (d)(1)-(3) is subject to the public notice and contested hearing
  requirements provided in Section 27.018.
         SECTION 33.  (a)  On the effective date of this Act, the
  following rights, powers, duties, obligations, functions,
  activities, property, programs, and appropriations are transferred
  to the Texas Commission on Environmental Quality:
               (1)  all rights, powers, duties, obligations,
  functions, and activities:
                     (A)  that Chapter 401, Health and Safety Code,
  assigns to the Texas Department of Health, the Texas Board of
  Health, or their successor agencies or to the governing body,
  officers, or employees of that department, that board, or their
  successor agencies, including the Health and Human Services
  Commission and the Department of State Health Services; and
                     (B)  that are related to licensing and regulation
  of:
                           (i)  radioactive substances recovery,
  storage, processing, and disposal; or
                           (ii)  long-term care of decommissioned sites
  for disposal of by-product material;
               (2)  all equipment, information, documents,
  facilities, and other property of the Health and Human Services
  Commission or the Department of State Health Services pertaining to
  licensing and regulation of:
                     (A)  radioactive substances recovery, storage,
  processing, and disposal under the jurisdiction of the Texas
  Commission on Environmental Quality as provided by Subsection (b),
  Section 401.011, Health and Safety Code, as amended by this Act; or
                     (B)  long-term care of decommissioned sites for
  disposal of by-product material;
               (3)  all appropriations for the state fiscal biennium
  that begins September 1, 2007, made to the Health and Human
  Services Commission or the Department of State Health Services for
  activities related to licensing and regulation of:
                     (A)  radioactive substances recovery, storage,
  processing, and disposal under the jurisdiction of the Texas
  Commission on Environmental Quality as provided by Subsection (b),
  Section 401.011, Health and Safety Code, as amended by this Act; or
                     (B)  long-term care of decommissioned sites for
  disposal of by-product material; and
               (4)  the unexpended and unobligated portions of the
  appropriations for the state fiscal biennium beginning
  September 1, 2005, made to the Health and Human Services Commission
  or the Department of State Health Services for activities described
  by Subdivision (3) of this subsection.
         (b)  Appropriations transferred under Subdivision (4),
  Subsection (a), of this section are transferred for the remainder
  of that state fiscal biennium.
         (c)  The Texas Commission on Environmental Quality, as of the
  date of the transfer prescribed by Subsection (a) of this section,
  has full responsibility for the administration and enforcement of
  laws related to licensing or regulation of radioactive substances
  recovery, storage, processing, and disposal under the jurisdiction
  of the commission as provided by Subsection (b), Section 401.011,
  Health and Safety Code, as amended by this Act, and licensing or
  regulation of long–term care of decommissioned sites for the
  disposal of by-product material. The Texas Commission on
  Environmental Quality shall carry out all related duties,
  responsibilities, functions, and activities as provided by law,
  including those assigned by any other Acts of the 80th Legislature,
  Regular Session, 2007.
         (d)  The transfer of rights, powers, duties, obligations,
  functions, activities, property, and programs of the Health and
  Human Services Commission or the Department of State Health
  Services to the Texas Commission on Environmental Quality made by
  this Act does not affect or impair any act done or obligation,
  right, license, permit, requirement, or penalty accrued or existing
  under the former law; that law remains in effect for the purposes of
  any action concerning such an act done or obligation, right,
  license, permit, requirement, or penalty. The Texas Commission on
  Environmental Quality shall continue a proceeding of the Health and
  Human Services Commission or the Department of State Health
  Services that is related to a responsibility, duty, activity,
  function, or program transferred by this Act, including processing
  an application for a license or other authorization and including
  enforcing the requirements of Chapter 401, Health and Safety Code,
  or a rule adopted under that chapter. A rule of the Health and Human
  Services Commission or the Department of State Health Services
  related to a responsibility, duty, activity, function, or program
  transferred by this Act is enforceable as a rule of the Texas
  Commission on Environmental Quality until the Texas Commission on
  Environmental Quality adopts other rules.
         (e)  Control of and title to all property and material
  acquired by this state or an agency of this state under Section
  401.267, Health and Safety Code, before the effective date of this
  Act shall be transferred to the Texas Commission on Environmental
  Quality on this state's behalf as soon as practicable. This
  subsection does not apply to property or material sold by the state
  under Subsection (b) of that section before the effective date of
  this Act.
         (f)  The Texas Commission on Environmental Quality shall
  provide an opportunity for employees of the Health and Human
  Services Commission or the Department of State Health Services who
  have performed duties related to a right, power, duty, obligation,
  responsibility, function, activity, or program transferred by this
  Act to request a transfer to commission employment. In making
  employment decisions under this subsection, the Texas Commission on
  Environmental Quality shall:
               (1)  ensure that state and federal requirements are met
  by commission employees; and
               (2)  consider the value of maintaining continuity in
  the personnel staffing relevant programs.
         (g)  The Texas Commission on Environmental Quality, the
  Health and Human Services Commission, and the Department of State
  Health Services shall cooperate in preventing any delay that may be
  caused by or may occur in the transfer of property or personnel or a
  right, power, duty, obligation, responsibility, function,
  activity, or program made by this Act.
         (h)  To expedite the transfers made by this Act of rights,
  powers, duties, obligations, functions, activities, property, and
  programs, and to prevent delays related to any of the rights,
  powers, duties, obligations, functions, activities, property, or
  programs, the Texas Commission on Environmental Quality may
  contract with any person to assist the commission.  The commission
  may assess and collect additional fees from an applicant affected
  by performance under a contract under this subsection to recover
  the commission's contracting costs.
         (i)  The transfers made by this Act do not affect any matter
  that is the subject of a court proceeding pending on the effective
  date of this Act.
         (j)  The Texas Commission on Environmental Quality shall
  continue any applications review or processing and any hearings
  that concern a matter subject to transfer under Subsection (a) of
  this section that, on the date of the transfer, is being conducted
  by the Health and Human Services Commission or the Department of
  State Health Services or their successor agencies. The agencies
  shall cooperate and consult with each other to ensure that any delay
  necessitated by the transfer is minimized to the greatest extent
  possible.  The Texas Commission on Environmental Quality shall
  utilize progress made on any technical review or environmental
  analysis conducted by the department prior to the effective date of
  this Act.
         (k)  An application for a new license to dispose of
  by-product material that is filed with the Department of State
  Health Services on or before January 1, 2007, and that has not been
  referred to the State Office of Administrative Hearings by the
  department before the effective date of this Act shall be processed
  by the Texas Commission on Environmental Quality following the
  effective date of this Act as follows:
               (1)  a license application subject to this subsection
  shall be governed only by the technical rules and regulations of the
  department that are effective on the effective date of this Act;
               (2)  the commission shall complete any technical review
  of a license application subject to this subsection and determine
  whether a draft license shall be issued on or before October 1,
  2007. The commission shall utilize progress made on any technical
  review or environmental analysis conducted by the department before
  the effective date of this Act. In order to meet the deadline
  provided by this subdivision, the commission may contract with the
  department or other entities for completion of any portion of the
  technical review that has not been completed upon the effective
  date of this Act. The commission may assess and collect additional
  fees from the applicant to recover costs the commission incurs for
  technical review of a license application subject to this
  subsection;
               (3)  the commission shall render a final decision on a
  license application subject to this subsection on or before
  December 31, 2008; and
               (4)  a contested case hearing held on a license
  application subject to this subsection that was filed with the
  department on or before January 1, 2007, may not exceed one year in
  duration, measured from the date of referral by the commission of
  the application to the State Office of Administrative Hearings
  until the commission makes a final decision on the application.
  Discovery in such a hearing shall be limited to not more than 60
  days in order to meet this limitation.  Notice of hearing shall be
  provided to the applicant, the office of public interest counsel,
  the executive director of the commission, and the person who timely
  requested a contested case hearing by mail at least 10 days in
  advance of the hearing.
         (l)  This subsection applies only to an applicant for a
  license subject to Subsection (k) of this section. Notwithstanding
  rules adopted under Subsection (f), Section 401.263, Health and
  Safety Code, as amended by this Act, and to the extent not
  prohibited under federal law, the applicant, at the applicant's own
  risk, may begin major construction related to the activities for
  which the license application was made at the time technical review
  of the application has been made and an environmental analysis is
  prepared under Section 401.263, Health and Safety Code. The Texas
  Commission on Environmental Quality may oversee and govern the
  construction authorized by this subsection in the same manner and
  to the same extent as if the construction were authorized by a
  license issued by the commission, and the construction is subject
  to relevant commission rules as if the construction were authorized
  by a license issued by the commission.
         SECTION 34.  (a)  This Act does not impair, delay, or affect
  the priority established by law for processing and review of the
  application for a license to dispose of low-level radioactive waste
  that was filed with the Texas Commission on Environmental Quality
  before January 1, 2007.
         (b)  The Texas Commission on Environmental Quality shall
  give priority to the processing and review of the license
  application described by Subsection (a) of this section over all
  other applications that pertain to radioactive substances or
  radioactive waste pending before the commission except for those
  applications the executive director of the Texas Commission on
  Environmental Quality determines are necessarily of a higher
  priority to avert or address an emergency concerning the public
  health or safety.
         (c)  Subject to the priority given under Subsection (b) of
  this section to the application, the Texas Commission on
  Environmental Quality shall give priority to the review and
  processing of:
               (1)  an application for the commercial disposal of
  by-product material;
               (2)  an application for termination of a license to
  recover or process source material and dispose of associated
  by-product material generated in this state; and
               (3)  a new application for a permit to recover or
  process source material and dispose of associated by-product
  material generated in this state.
         SECTION 35.  Notwithstanding other law or any rule on the
  subject of timeliness of an applicant providing information
  pertaining to an application for a license from the Texas
  Commission on Environmental Quality, the applicant for a license
  shall assist the commission in meeting any deadlines imposed by
  Chapter 401, Health and Safety Code, by submitting to the
  commission any information the commission requires regarding the
  application in a prompt and timely manner.  The deadlines imposed by
  this Act and by Chapter 401, Health and Safety Code, as amended by
  this Act, are based on the assumptions that the applicant timely
  submits a complete application and that all requirements are met.
         SECTION 36.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect on the 91st day after the last day of
  the legislative session.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1604 passed the Senate on
  April 17, 2007, by the following vote: Yeas 29, Nays 1; and that
  the Senate concurred in House amendment on May 27, 2007, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1604 passed the House, with
  amendment, on May 23, 2007, by the following vote: Yeas 142,
  Nays 3, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor