H.B. No. 7
 
 
 
 
AN ACT
  relating to the amounts, availability, and use of certain
  statutorily dedicated revenue and accounts; reducing or affecting
  the amounts or rates of certain statutorily dedicated fees and
  assessments; making an appropriation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 322, Government Code, is amended by
  adding Section 322.024 to read as follows:
         Sec. 322.024.  REDUCTION OF RELIANCE ON AVAILABLE DEDICATED
  REVENUE FOR BUDGET CERTIFICATION.  (a) In this section, "available
  dedicated revenue" means revenue that Section 403.095 makes
  available for certification under Section 403.121.
         (b)  The board shall:
               (1)  develop and implement a process to review:
                     (A)  new legislative enactments that create
  dedicated revenue; and
                     (B)  the appropriation and accumulation of
  dedicated revenue and available dedicated revenue;
               (2)  develop and implement tools to evaluate the use of
  available dedicated revenue for state government financing and
  budgeting; and
               (3)  develop specific and detailed recommendations on
  actions the legislature may reasonably take to reduce state
  government's reliance on available dedicated revenue for the
  purposes of certification under Section 403.121 as authorized by
  Section 403.095.
         (c)  The board shall incorporate into the board's budget
  recommendations appropriate measures to reduce state government's
  reliance on available dedicated revenue for the purposes of
  certification under Section 403.121 as authorized by Section
  403.095 and shall include with the budget recommendations plans for
  further reducing state government's reliance on available
  dedicated revenue for those purposes for the succeeding six years.
         (d)  The board shall consult the comptroller as necessary to
  accomplish the objectives of Subsections (b) and (c).
         SECTION 2.  Subchapter F, Chapter 403, Government Code, is
  amended by adding Section 403.0956 to read as follows:
         Sec. 403.0956.  REALLOCATION OF INTEREST ACCRUED ON CERTAIN
  DEDICATED REVENUE. Notwithstanding any other law, all interest or
  other earnings that accrue on all revenue held in an account in the
  general revenue fund any part of which Section 403.095 makes
  available for certification under Section 403.121 are available for
  any general governmental purpose, and the comptroller shall deposit
  the interest and earnings to the credit of the general revenue fund.
  This section does not apply to:
               (1)  interest or earnings on revenue deposited in
  accordance with Section 51.008, Education Code;
               (2)  an account that accrues interest or other earnings
  on deposits of state or federal money the diversion of which is
  specifically excluded by federal law;
               (3)  the lifetime license endowment account; or
               (4)  the game, fish, and water safety account.
         SECTION 3.  Sections 361.013(a) and (f), Health and Safety
  Code, are amended to read as follows:
         (a)  Except as provided by Subsections (e) through (i), the
  commission shall charge a fee on all solid waste that is disposed of
  within this state. The fee is 94 cents [$1.25] per ton received for
  disposal at a municipal solid waste landfill if the solid waste is
  measured by weight. If the solid waste is measured by volume, the
  fee for compacted solid waste is 30 [40] cents per cubic yard and
  the fee [or,] for uncompacted solid waste is 19 [, 25] cents per
  cubic yard received for disposal at a municipal solid waste
  landfill. The commission shall set the fee for sludge or similar
  waste applied to the land for beneficial use on a dry weight basis
  and for solid waste received at an incinerator or a shredding and
  composting facility at half the fee set for solid waste received for
  disposal at a landfill. The commission may charge comparable fees
  for other means of solid waste disposal that are used.
         (f)  The commission may not charge a fee under Subsection (a)
  for source separated [yard waste] materials that are processed
  [composted] at a composting and mulch processing facility,
  including a composting and mulch processing facility located at a
  permitted landfill site. The commission shall credit any fee
  payment due under Subsection (a) for any material received and
  processed [converted] to compost or mulch product at the facility
  [for composting through a composting process]. Any compost or
  mulch product that is produced at a [for] composting and mulch
  processing facility that is [not] used in the operation of the
  facility or is disposed of [as compost and is deposited] in a
  landfill is not exempt from the fee.
         SECTION 4.  Sections 361.014(a) and (b), Health and Safety
  Code, are amended to read as follows:
         (a)  Revenue received by the commission under Section
  361.013 shall be deposited in the state treasury to the credit of
  the commission. Of that [Half of the] revenue, 66.7 percent is
  dedicated to the commission's municipal solid waste permitting
  programs, [and] enforcement programs, and site remediation
  programs, and [related support activities and] to pay for
  activities that will enhance the state's solid waste management
  program. The commission shall issue a biennial report to the
  legislature describing in detail how the money was spent. The
  activities to enhance the state's solid waste management program
  may include[, including]:
               (1)  provision of funds for the municipal solid waste
  management planning fund and the municipal solid waste resource
  recovery applied research and technical assistance fund
  established by the Comprehensive Municipal Solid Waste Management,
  Resource Recovery, and Conservation Act (Chapter 363);
               (2)  conduct of demonstration projects and studies to
  help local governments of various populations and the private
  sector to convert to accounting systems and set rates that reflect
  the full costs of providing waste management services and are
  proportionate to the amount of waste generated;
               (3)  provision of technical assistance to local
  governments concerning solid waste management;
               (4)  establishment of a solid waste resource center in
  the commission and an office of waste minimization and recycling;
               (5)  provision of supplemental funding to local
  governments for the enforcement of this chapter, the Texas Litter
  Abatement Act (Chapter 365), and Chapters 391 and 683,
  Transportation Code;
               (6)  conduct of a statewide public awareness program
  concerning solid waste management;
               (7)  provision of supplemental funds for other state
  agencies with responsibilities concerning solid waste management,
  recycling, and other initiatives with the purpose of diverting
  recyclable waste from landfills;
               (8)  conduct of research to promote the development and
  stimulation of markets for recycled waste products;
               (9)  creation of a state municipal solid waste
  superfund, from funds appropriated, for:
                     (A)  the cleanup of unauthorized tire dumps and
  solid waste dumps for which a responsible party cannot be located or
  is not immediately financially able to provide the cleanup;
                     (B)  the cleanup or proper closure of abandoned or
  contaminated municipal solid waste sites for which a responsible
  party is not immediately financially able to provide the cleanup;
  and
                     (C)  remediation, cleanup, and proper closure of
  unauthorized recycling sites for which a responsible party is not
  immediately financially able to perform the remediation, cleanup,
  and closure;
               (10)  provision of funds to mitigate the economic and
  environmental impacts of lead-acid battery recycling activities on
  local governments; and
               (11)  provision of funds for the conduct of research by
  a public or private entity to assist the state in developing new
  technologies and methods to reduce the amount of municipal waste
  disposed of in landfills.
         (b)  Of [Half of] the revenue received by the commission
  under Section 361.013, 33.3 percent is dedicated to local and
  regional solid waste projects consistent with regional plans
  approved by the commission in accordance with this chapter and to
  update and maintain those plans. Those revenues shall be allocated
  to municipal solid waste geographic planning regions for use by
  local governments and regional planning commissions according to a
  formula established by the commission that takes into account
  population, area, solid waste fee generation, and public health
  needs. Each planning region shall issue a biennial report to the
  legislature detailing how the revenue is spent. A project or
  service funded under this subsection must promote cooperation
  between public and private entities and may not be otherwise
  readily available or create a competitive advantage over a private
  industry that provides recycling or solid waste services.
         SECTION 5.  Section 361.133, Health and Safety Code, is
  amended by adding Subsection (c-1) to read as follows:
         (c-1)  Notwithstanding Subsection (c), money in the account
  attributable to fees imposed under Section 361.138 may be used for
  environmental remediation at the site of a closed battery recycling
  facility located in the municipal boundaries of a municipality if
  the municipality submits to the commission a voluntary compliance
  plan for the site and is paying or has paid for part of the costs of
  the environmental remediation of the site. This subsection expires
  September 30, 2014.
         SECTION 6.  Section 771.0711(c), Health and Safety Code, is
  amended to read as follows:
         (c)  Money collected under Subsection (b) may be used only
  for services related to 9-1-1 services, including automatic number
  identification and automatic location information services, or as
  authorized by Section 771.079(c). Not later than the 15th day after
  the end of the month in which the money is collected, the commission
  shall distribute to each emergency communication district that does
  not participate in the state system a portion of the money that
  bears the same proportion to the total amount collected that the
  population of the area served by the district bears to the
  population of the state. The remaining money collected under
  Subsection (b) shall be deposited to the 9-1-1 services fee
  account.
         SECTION 7.  Section 771.079, Health and Safety Code, is
  amended by amending Subsection (c) and adding Subsection (c-1) to
  read as follows:
         (c)  Except as provided by Subsection (c-1), money [Money] in
  the account may be appropriated only to the commission for
  planning, development, provision, or enhancement of the
  effectiveness of 9-1-1 service or for contracts with regional
  planning commissions for 9-1-1 service, including for the purposes
  of:
               (1)  maintaining 9-1-1 service levels while providing
  for a transition to a system capable of addressing newer
  technologies and capable of addressing other needs;
               (2)  planning and deploying statewide, regional, and
  local emergency network systems; and
               (3)  updating geospatial mapping technologies.
         (c-1)  The legislature may appropriate money from the
  account to provide assistance to volunteer fire departments under
  Subchapter G, Chapter 614, Government Code, only if:
               (1)  the purposes described by Subsection (c) have been
  accomplished or are fully funded for the fiscal period for which an
  appropriation under this subsection is made; and
               (2)  all other sources of revenue dedicated for the
  purposes of providing assistance to volunteer fire departments
  under Subchapter G, Chapter 614, Government Code, are obligated for
  the fiscal period for which an appropriation under this subsection
  is made.
         SECTION 8.  Section 780.003(a), Health and Safety Code, is
  amended to read as follows:
         (a)  The designated trauma facility and emergency medical
  services account is created as a dedicated account in the general
  revenue fund of the state treasury. Money in the account may be
  appropriated only to:
               (1)  the department for the purposes described by
  Section 780.004; or
               (2)  the Texas Higher Education Coordinating Board for
  graduate-level:
                     (A)  medical education programs; or
                     (B)  nursing education programs.
         SECTION 9.  Section 2007.002, Insurance Code, is amended to
  read as follows:
         Sec. 2007.002.  ASSESSMENT. The comptroller shall assess
  against all insurers to which this chapter applies amounts for each
  state fiscal year necessary, as determined by the commissioner, to
  collect a combined total equal to the lesser of the total amount
  that the General Appropriations Act appropriates from the volunteer
  fire department assistance fund account in the general revenue fund
  for that state fiscal year and [of] $30 million [for each 12-month
  period].
         SECTION 10.  Section 81.067(c), Natural Resources Code, is
  amended to read as follows:
         (c)  The fund consists of:
               (1)  proceeds from bonds and other financial security
  required by this chapter and benefits under well-specific plugging
  insurance policies described by Section 91.104(c) that are paid to
  the state as contingent beneficiary of the policies, subject to the
  refund provisions of Section 91.1091, if applicable;
               (2)  private contributions, including contributions
  made under Section 89.084;
               (3)  expenses collected under Section 89.083;
               (4)  fees imposed under Section 85.2021;
               (5)  costs recovered under Section 91.457 or 91.459;
               (6)  proceeds collected under Sections 89.085 and
  91.115;
               (7)  interest earned on the funds deposited in the
  fund;
               (8)  oil and gas waste hauler permit application fees
  collected under Section 29.015, Water Code;
               (9)  costs recovered under Section 91.113(f);
               (10)  hazardous oil and gas waste generation fees
  collected under Section 91.605;
               (11)  oil-field cleanup regulatory fees on oil
  collected under Section 81.116;
               (12)  oil-field cleanup regulatory fees on gas
  collected under Section 81.117;
               (13)  fees for a reissued certificate collected under
  Section 91.707;
               (14)  fees collected under Section 91.1013;
               (15)  fees collected under Section 89.088;
               (16)  fees collected under Section 91.142;
               (17)  fees collected under Section 91.654;
               (18)  costs recovered under Sections 91.656 and 91.657;
               (19)  two-thirds of the fees collected under Section
  81.0521;
               (20)  fees collected under Sections 89.024 and 89.026;
               (21)  legislative appropriations; [and]
               (22)  any surcharges collected under Section 81.070;
  and
               (23)  fees collected under Section 91.0115.
         SECTION 11.  Section 81.068, Natural Resources Code, is
  amended to read as follows:
         Sec. 81.068.  PURPOSES [PURPOSE] OF OIL AND GAS REGULATION
  AND CLEANUP FUND.  Money in the oil and gas regulation and cleanup
  fund may be used by the commission or its employees or agents for
  any purpose related to the regulation of oil and gas development,
  including oil and gas monitoring and inspections, oil and gas
  remediation, and oil and gas well plugging, the study and
  evaluation of electronic access to geologic data and surface casing
  depths necessary to protect usable groundwater in this state,
  alternative fuels programs under Section 81.0681, public
  information and services related to those activities, and
  administrative costs and state benefits for personnel involved in
  those activities.
         SECTION 12.  Subchapter C, Chapter 81, Natural Resources
  Code, is amended by adding Section 81.0681 to read as follows:
         Sec. 81.0681.  ALTERNATIVE FUELS PROGRAMS. (a) The
  commission shall adopt all necessary rules relating to activities
  regarding the use of alternative fuels that are or have the
  potential to be effective in improving the air quality, energy
  security, or economy of this state.
         (b)  The commission shall use the oil and gas regulation and
  cleanup fund to pay for activities relating to the use of
  alternative fuels, including direct and indirect costs relating to:
               (1)  researching all possible uses of liquefied
  petroleum gas and natural gas as alternative fuels;
               (2)  researching, developing, and implementing
  marketing, advertising, and informational programs relating to
  alternative fuels to make alternative fuels more understandable and
  readily available to consumers;
               (3)  developing and implementing conservation and
  distribution plans to minimize the frequency and severity of
  disruptions in the supply of alternative fuels;
               (4)  developing a public information plan that will
  provide advisory services relating to alternative fuels to
  consumers;
               (5)  developing voluntary participation plans to
  promote the use of alternative fuels by federal, state, and local
  agencies; and
               (6)  other functions the commission determines are
  necessary to add a program established by the commission for the
  purpose of promoting the use of liquefied petroleum gas, natural
  gas, or other alternative fuels.
         SECTION 13.  Section 91.0115, Natural Resources Code, is
  amended by amending Subsection (c) and adding Subsection (d) to
  read as follows:
         (c)  The commission shall charge a fee not to exceed $75, in
  addition to the fee required by Subsection (b), for processing a
  request to expedite a letter of determination.  [Money collected
  under this subsection may be used to study and evaluate electronic
  access to geologic data and surface casing depths under Section
  91.020.]
         (d)  The fees collected under this section shall be deposited
  in the oil and gas regulation and cleanup fund.
         SECTION 14.  Section 151.801(c-1), Tax Code, is amended to
  read as follows:
         (c-1)  Except as provided by this subsection, the [The]
  comptroller may not credit to the Parks and Wildlife Department or
  the Texas Historical Commission any amounts under this section that
  are in excess of the amounts appropriated to the department or
  commission for that biennium[, less any other amounts to which the
  department or commission is entitled]. In addition to amounts
  appropriated to the Parks and Wildlife Department from the proceeds
  described by Subsection (c), the comptroller shall transfer to
  appropriate department accounts amounts from those proceeds
  sufficient to fund the state contributions for employee benefits of
  Parks and Wildlife Department employees whose salaries or wages are
  paid from department accounts receiving the transfers.
         SECTION 15.  Subchapter G, Chapter 504, Transportation Code,
  is amended by adding Section 504.6012 to read as follows:
         Sec. 504.6012.  ELIMINATION OF DEDICATED REVENUE ACCOUNTS;
  REVENUES IN TRUST. (a) Notwithstanding any other provision of this
  subchapter, not later than September 30, 2013, the comptroller
  shall eliminate all dedicated accounts established for specialty
  license plates under this subchapter and shall set aside the
  balances of those dedicated accounts so that the balances may be
  appropriated only for the purposes intended as provided by the
  dedications.
         (b)  On and after September 1, 2013, the portion of a fee
  payable under this subchapter that is designated for deposit to a
  dedicated account shall be paid instead to the credit of an account
  in a trust fund created by the comptroller outside the general
  revenue fund. The comptroller shall administer the trust fund and
  accounts and may allocate the corpus and earnings on each account
  only in accordance with the dedications of the revenue deposited to
  the trust fund accounts.
         SECTION 16.  Section 39.903, Utilities Code, is amended by
  adding Subsection (m) to read as follows:
         (m)  This section expires September 1, 2016.
         SECTION 17.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.9039 to read as follows:
         Sec. 39.9039.  ELIMINATION OF SYSTEM BENEFIT FUND BALANCE.
  (a) Notwithstanding Section 39.903(b), the commission shall set the
  nonbypassable system benefit fund fee at the amount of zero cents
  per megawatt hour for the period beginning September 1, 2013, and
  ending September 1, 2016.
         (b)  Notwithstanding Section 39.903(e), money in the system
  benefit fund may be appropriated:
               (1)  for the state fiscal year beginning September 1,
  2013, a program established by the commission to assist low-income
  electric customers by providing a reduced rate for the months of
  September, 2013, and May through August, 2014, in the manner
  prescribed by Section 39.903(h) at a rate of up to 82 percent;
               (2)  for the state fiscal year beginning September 1,
  2014, a program established by the commission to assist low-income
  electric customers by providing a reduced rate for the months of
  September, 2014, and May through August, 2015, in the manner
  prescribed by Section 39.903(h) at a rate of up to 15 percent;
               (3)  for the state fiscal year beginning September 1,
  2015, a program established by the commission to assist low-income
  electric customers by providing a reduced rate for the months of
  September, 2015, and May through August, 2016, in the manner
  prescribed by Section 39.903(h) at a rate of up to 15 percent; and
               (4)  for customer education programs and
  administrative expenses incurred by the commission in implementing
  and administering this chapter.
         (c)  This section expires September 1, 2016.
         SECTION 18.  Subchapter I, Chapter 26, Water Code, is
  amended by adding Section 26.35745 to read as follows:
         Sec. 26.35745.  REPORT ON CORRECTIVE ACTIONS FOR PETROLEUM
  CONTAMINATED SITES AND FEES NECESSARY TO CONCLUDE PROGRAM. (a) The
  commission annually shall prepare a report regarding the status of
  corrective actions for sites reported to the commission under this
  subchapter as having had a release needing corrective action. The
  commission must issue the report to the legislature on or before
  November 1 of each year.
         (b)  Regarding sites reported to the commission under this
  subchapter as having had a release needing corrective action on or
  before December 22, 1998, and that remain in the commission's PST
  State-Lead Program on September 1, 2013, the report must include:
               (1)  the total number of sites;
               (2)  the total number of sites for which corrective
  action is ongoing;
               (3)  the total number of sites monitored;
               (4)  the projected costs of the corrective actions;
               (5)  the projected costs of monitoring;
               (6)  a projected timeline for issuing closure letters
  under this subchapter for all of the sites; and
               (7)  for each site, the corrective action activities
  proposed and completed during the preceding state fiscal year.
         (c)  Regarding sites reported to the commission under this
  subchapter as having had a release needing corrective action after
  December 22, 1998, for which the commission has elected to assume
  responsibility for undertaking corrective action under this
  subchapter, the report must include:
               (1)  the current status of each site;
               (2)  the costs associated with the corrective action
  activities performed during the preceding state fiscal year for the
  sites;
               (3)  amounts recovered under Section 26.355 related to
  the sites; and
               (4)  enforcement actions taken against owners and
  operators related to those sites.
         (d)  The commission shall investigate the amount of fees that
  would be necessary to cover the costs necessary to conclude the
  programs and activities under this subchapter before September 1,
  2021. The commission shall include in the annual report under this
  section the conclusions of the investigation and the commission's
  recommendations regarding the fees and programs and activities.
         (e)  This section expires September 1, 2021.
         SECTION 19.  Effective September 1, 2015, Section 56.095(b),
  Education Code, is repealed.
         SECTION 20.  (a) Subchapter I, Chapter 113, Natural
  Resources Code, is repealed.
         (b)  On the effective date of this Act:
               (1)  the alternative fuels research and education fund
  is abolished;
               (2)  any money remaining in the alternative fuels
  research and education fund is transferred to the undedicated
  portion of the general revenue fund;
               (3)  any claim against the alternative fuels research
  and education fund is transferred to the undedicated portion of the
  general revenue fund; and
               (4)  any amount required to be deposited to the credit
  of the alternative fuels research and education fund shall be
  deposited to the credit of the undedicated portion of the general
  revenue fund.
         (c)  Any money transferred from the alternative fuels
  research and education fund to the undedicated portion of the
  general revenue fund that was deposited in the alternative fuels
  research and education fund as a gift, grant, or other form of
  assistance under former Subchapter I, Chapter 113, Natural
  Resources Code, and is encumbered by the specific terms of the gift,
  grant, or other form of assistance may be spent only in accordance
  with the terms of the gift, grant, or other form of assistance.
  Subchapter I, Chapter 113, Natural Resources Code, is continued in
  effect for the limited purpose of administering this subsection.
         SECTION 21.  In addition to other appropriations made from
  the system benefit fund by the 83rd Legislature, Regular Session,
  2013, the amount of $500 million is appropriated from the system
  benefit fund to the Public Utility Commission of Texas for the
  purposes of Section 39.9039, Utilities Code, as added by this Act,
  for the period beginning on the effective date of this Act and
  ending August 31, 2014.
         SECTION 22.  EFFECTIVE DATE. Except as otherwise provided
  by this Act:
         (1)  this Act takes effect immediately if this Act receives a
  vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution; and
         (2)  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 certify that H.B. No. 7 was passed by the House on May 2,
  2013, by the following vote:  Yeas 146, Nays 1, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 7 on May 24, 2013, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 7 on May 26, 2013, by the following vote:  Yeas 143,
  Nays 4, 2 present, not voting; passed subject to the provisions of
  Article III, Section 49a, of the Constitution of the State of Texas.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 7 was passed by the Senate, with
  amendments, on May 21, 2013, by the following vote:  Yeas 25, Nays
  6; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  7 on May 26, 2013, by the following vote:  Yeas 25, Nays 6; passed
  subject to the provisions of Article III, Section 49a, of the
  Constitution of the State of Texas.
 
  ______________________________
  Secretary of the Senate   
         I certify that the amounts appropriated in the herein H.B.
  No. 7, Regular Session of the 83rd Legislature, are within amounts
  estimated to be available in the affected fund.
  Certified_____________________
  ______________________________
  Comptroller of Public Accounts 
  APPROVED: __________________
                  Date       
   
           __________________
                Governor