HBA-ALS, ALS C.S.H.B. 2155 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2155
By: Yarbrough
Licensing & Administrative Procedures
4/19/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, different governmental entities have the authority to
issue licenses for plumbing, air conditioning and refrigeration
contracting, and backflow prevention.  As a result, a contractor who wishes
to perform this type of  work must obtain a necessary license from various
boards under the Department of Licensing and Regulation, the State Board of
Plumbing Examiners, and the Texas Natural Resource Conservation Commission.
The purpose of this bill is to create a more effective and efficient system
of licensing and to promote uniform and regular inspections in these
professions. 

C.S.H.B. 2155 creates the Texas State Board of Mechanical Industries
(board).  This bill sets forth rules relating to the designation of board
members, terms of board members, officers of the board, board meetings,
board member compensation, board membership restrictions, grounds for
removal of a board member, and restrictions on certain lobbying activities
of board members. C.S.H.B. 2155 requires the board to enforce and
administer enumerated laws and to issue specified licenses and permits.
This bill sets forth administrative penalties for violations under this Act
to be assessed by the board.  In addition, this bill abolishes certain
existing regulatory boards, commissions, and councils and transfers their
functions to the board. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas State Board of Mechanical
Industries in SECTION 1 (Sections 17 and 23, Article 9150, V.T.C.S.) of
this bill. 

SECTION BY SECTION ANALYSIS
HBA-ALS H.B. 2155 76(R)    
SECTION 1.  Amends V.T.C.S. by adding Title 132B, as follows:

TITLE 132B.  TEXAS STATE BOARD OF MECHANICAL INDUSTRIES

ARTICLE 9150.  TEXAS STATE BOARD OF MECHANICAL INDUSTRIES

Sec. 1.  DEFINITION.  Defines "board" as the Texas State Board of
Mechanical Industries.  

Sec. 2.  BOARD.  Sets forth the composition of the Texas State Board of
Mechanical Industries (board).  Provides that members of the board are
appointed by the governor with the advice and consent of the senate.
Requires board appointments to be made without regard to the race, color,
disability, sex, religion, age, or national origin of the appointees.  

Sec. 3. OFFICERS; MEETINGS; COMPENSATION. (a) Requires the governor to
designate a board member as the board's presiding officer to serve at the
will of the governor. Requires the board annually to select an assistant
presiding officer and a secretary-treasurer.  

(b)  Requires the board to hold at least two regular meetings each year.
Prohibits the board from holding more than four meetings each year unless
at least three-fifths of the board members submit a written request to the
presiding officer to call additional meetings.  

 (c)  Entitles a member of the board to a per diem as set by the General
Appropriations Act for each day the member engages in the business of the
board.  Prohibits a member from receiving compensation for travel expenses,
including expenses for meals and lodging, other than transportation
expenses as provided by the General Appropriations Act.  

Sec. 4.  TERMS.  Provides that the members of the board are appointed for
staggered six-year terms, with five members' terms expiring on February 1
of each odd-numbered year. Requires a member appointed to fill a vacancy to
hold office for the remainder of that term.  

Sec. 5.  PUBLIC MEMBERSHIP RESTRICTION.  Prohibits a person from being a
public member of the board if the person or the person's spouse: 

(1)  is registered, certified, or licensed by a regulatory agency in the
field of plumbing or mechanical work; 

(2)  is employed by or participates in the management of a business entity
or other organization regulated by or receiving money from the board; 

(3)  owns or controls, directly or indirectly, more than a 10 percent
interest in a business entity or other organization regulated by or
receiving money from the board; or 

(4)  uses or receives a substantial amount of tangible goods, services, or
money from the board other than compensation or reimbursement authorized by
law for board membership, attendance, or expenses.  

Sec. 6. CONFLICT OF INTEREST RESTRICTIONS. (a)  Defines "Texas trade
association."   
(b) Prohibits a person from being a member of the board and from being a
board employee in a "bona fide executive, administrative, or professional
capacity," as that phrase is used for purposes of establishing an exemption
to the overtime provisions of the federal Fair Labor Standards Act of 1938
(29 U.S.C. Section 201 et seq.) and its subsequent amendments, if the
person or the person's spouse meets certain characteristics. 
   
(c) Prohibits a person from being a member of the board or acting as the
general counsel to the board, if the person is required to register as a
lobbyist under Chapter 305, Government Code, because of the person's
activities for compensation on behalf of a profession related to the
operation of the board.  

Sec. 7.  EFFECT OF LOBBYING ACTIVITY.  Prohibits a person from serving as a
member of the board or acting as the general counsel to the board if the
person is required to register as a lobbyist under Chapter 305, Government
Code, because of the person's activities for compensation on behalf of a
profession related to the operation of the board.  

Sec. 8.  GROUNDS FOR REMOVAL FROM BOARD.  (a)  Specifies the grounds for
removal of a board member. 
   
(b)  Provides that the validity of a board's action is not affected by the
fact that it is taken when a ground for removal of a board member exists.  

(c)  Requires the executive director of the Texas Department of Licensing
and Regulation. 
(executive director) to notify the board's presiding officer that a
potential ground for removal exists and requires the presiding officer to
then notify the governor and the attorney general. Requires the executive
director, if the potential ground for removal involves the presiding
officer, to notify the next highest ranking officer of the board who is
required to then notify the governor and the attorney general. 

Sec. 9.  STAFF.  (a)  Requires the board to employ an executive director
and administrative and clerical employees as necessary to carry out the
board's functions. Requires the board to develop and implement policies
that clearly separate the board's policymaking responsibilities  and the
management responsibilities of the executive director and the staff of the
board.  

Sec. 10.  REGULATORY STATUTES ADMINISTERED.  Requires the board to
administer and enforce specified statutes relating to the regulation of
plumber licensing, air conditioning and refrigeration contractor licenses,
irrigators, and connections to public drinking water. 
   
Sec. 11.  ADVISORY COMMITTEES.  Requires the board to appoint separate
advisory committees on plumbing, irrigation, boilers, air conditioning and
refrigeration, and backflow prevention.  Authorizes the board to appoint
additional advisory committees as determined to be necessary by a majority
of the board. Provides that a member of an advisory committee appointed
under this section serves a two-year term.  Provides that an advisory
committee member is not entitled to compensation but entitles an advisory
committee member to reimbursement for actual and necessary expenses,
including travel expenses, incurred in performing duties as a member of the
advisory committee.  

Sec. 12. SEPARATE LICENSES. Requires the board to issue separate licenses,
certificates, permits, or registrations for the programs under Section 10
of this article. Authorizes the board to issue more than one type of
license, certificate, permit, or registration to a person who is qualified
to hold each of the licenses, certificates, permits, or registrations
issued. Requires the board to adopt rules relating to the issuance of
multiple licenses, certificates, permits, or registrations to a person
under laws administered by the board.  

Sec. 13.  EXPENDITURES; AUDIT. Authorizes the board to authorize
disbursements from appropriated funds that are necessary to carry out this
article and the laws and programs listed in Section 10 of this article.
Provides that the financial transactions of the board are subject to audit
by the state auditor in accordance with Chapter 321, Government Code.  

Sec. 14. ANNUAL FINANCIAL REPORT.  Requires the board to annually file with
the governor and the presiding officer of each house of the legislature a
detailed written report accounting for all funds received and disbursed by
the board during the preceding fiscal year. Provides that the annual report
must be in the form and reported in the time provided under the General
Appropriations Act.  

Sec. 15. PERSONNEL POLICIES. Requires the executive director or the
executive director's designee to develop an intra-agency career ladder
program requiring intra-agency posting of all nonentry level positions
concurrently with any public posting. Requires the executive director or
the executive director's designee to develop a system of annual performance
evaluations based on measurable job tasks and on the system established
under this subsection.  

Sec. 16.  EQUAL EMPLOYMENT OPPORTUNITY POLICIES.  Requires the  executive
director or the executive director's designee to prepare and maintain a
written policy statement  implementing an equal employment opportunity
program to ensure that personnel decisions are made without regard to race,
color, disability, sex, religion, age, or national origin. Specifies the
information that is required to be contained in a policy statement.
Provides that a policy statement must be updated annually, be reviewed by
the state Commission on Human Rights for compliance with Subsection (b)(1),
and be filed with the governor's office.  

Sec. 17. PUBLIC INTEREST INFORMATION. (a) Requires the board to prepare
information of public interest describing the functions of the board and
the procedures by which complaints are filed with and resolved by the
board.  Requires the board to make the information available to the public
and appropriate state agencies.  

(b)  Requires the board, by rule, to establish methods to notify consumers
and service recipients  of the board's name, mailing address, and telephone
number, and the license number of the responsible licensee for the purpose
of directing complaints to the board. Specifies the means by which the
board or the responsible licensee is required to provide notification. 
   
(c)  Requires the board to list, along with its regular telephone number,
the toll-free telephone number for complaints about a health professional,
if the toll-free number is established under other state law.  

Sec. 18.  PUBLIC PARTICIPATION IN BOARD HEARINGS.  Requires the board to
develop and implement policies that provide the public with a reasonable
opportunity to appear before the board and to speak on any issue under the
jurisdiction of the board.  

Sec. 19.  PROGRAM ACCESSIBILITY. Requires the board to prepare and maintain
a written plan describing how reasonable access to the board's programs can
be provided to a person who does not speak English. Requires the board to
comply with federal and state laws for program and facility accessibility.  

Sec. 20.  BOARD MEMBER TRAINING; STANDARDS OF CONDUCT INFORMATION.
Prohibits a person who is appointed to and qualifies for office as a member
of the board from voting, deliberating, or being counted as an attending
member at a board meeting, until the person completes a training program
under this section.  Specifies the type of information that the training
program must provide a person. Entitles a board member to reimbursement, as
provided by the General Appropriations Act, for the travel expenses
incurred in attending the training program, regardless of whether the
attendance at the program occurs before or after the person qualifies for
office. Requires the executive director or the executive director's
designee to provide to members of the board and to board employees, as
often as necessary, information regarding the requirements for office or
employment under this article.   
 
Sec. 21. SUNSET PROVISION.  Provides that the board is subject to Chapter
325, Government Code (Texas Sunset Act) and the board is abolished and this
article expires September 1, 2011, unless its existence is continued as
provided by that chapter. 

Sec. 22.  PENALTIES. (a) Requires the board to revoke or suspend a license,
endorsement, certification or registration, probate a license, endorsement,
certification or registration suspension, or reprimand a person or entity
regulated by the board for a violation of this Act or a regulatory statute
administered by the board or any rule adopted under this Act or any rule
adopted under a regulatory statute administered by the board.  Specifies
acts that constitute a violation of this Act. 

(b) Authorizes the board to assess an administrative penalty against a
person who violates a provision of this article, a law administered by the
board, or a rule or order adopted by the board as provided by this section.

(c) Prohibits a penalty from exceeding $1,000 for each violation.
Authorizes the consideration of each day a violation continues or occurs as
a separate violation for purposes of penalty assessment. Requires the board
to consider specified factors in determining the amount of the penalty.   
   
(d)  Entitles a person to request a hearing governed by Chapter 2001,
Government Code (Administrative Procedures Act), if the board proposes to
assess an administrative penalty, refuse a person's application for
licensure, endorsement, certification, or registration or to suspend or
revoke a person's license, endorsement, certification, or registration  

(e)  Requires the executive director or the executive director's staff
designee to oversee and conduct investigations, conduct informal
conferences, negotiate agreed final orders, draft formal complaints,
recommend administrative penalties, and pursue cases involving violations
of this Act and specified statutes and rules.  Provides that such
proceedings are subject to the Administrative Procedure Act. 

(f)  Requires the person or entity charged with the penalty, within a
specified time period, to pay the penalty in full, or, if the person or
entity files a petition for judicial review  contesting certain findings,
to forward the amount to the board for placement in an escrow account or in
lieu of payment into escrow, post with the board a supersedeas bond in a
form approved by the board for the amount of the penalty to be effective
until all judicial review of the order or decision is final.   

(g) Authorizes a person charged who is financially unable to either forward
the amount of the penalty for placement in an escrow account or, post a
supersedeas bond, to satisfy the requirements by filing with the board a
sworn affidavit stating that the person is financially unable to either
forward the amount of the penalty or post a bond.  

(h) Authorizes the board, if the person charged fails to pay the penalty in
full, or forward the money, post the bond, or file the affidavit as
provided by Subsection (f) or (g) of this section, to forward the matter to
the attorney general for enforcement.  

(i) Requires judicial review of the order or decision of the board
assessing the penalty to be under the substantial evidence rule and to be
instituted by filing a petition with a district court in Travis County, as
provided by Subchapter G, Chapter 2001, Government Code.  
   
(j) Requires the board, if the penalty is reduced or not assessed by the
court, to remit to the person charged the appropriate amount plus accrued
interest if the penalty has been paid or to execute a release of the bond
if a supersedeas bond has been posted.  Requires the payment of accrued
interest on amounts remitted by the board to be paid at a rate equal to the
rate charged on loans to depository institutions by the New York Federal
Reserve Bank for the period beginning on the date the penalty is paid to
the board under Subsection (f) of this section and ending on the date the
penalty is remitted.  

(k) Requires a penalty collected under this section to be deposited in the
general revenue fund. 

(l)  Specifies the acts by a person that constitute a Class C misdemeanor
under this section.  

(m) Authorizes a field representative of the board, a municipal or water
district inspector with proper jurisdiction, or other authorized inspector,
to issue citations to persons who engage in conduct described by Subsection
(l). 

(n)  Authorizes the filing of citations under Subsections (l) and (m) in a
county justice court or municipality court for adjudication of the offense. 

Sec. 23.  EFFECT OF FEDERAL REGULATIONS.  Requires the board to adopt rules
for a law or program regulated by the board in order to comply with any
federal regulation that imposes standards or requirements on that law or
program.  

SECTION 2.  Amends the Plumbing License Law, Article 6243-101, V.T.C.S., by
adding Section 1A , as follows: 

Sec. 1A.  FUNCTIONS TRANSFERRED; BOARD ABOLISHED.  Provides that this Act
is administered by the Texas State Board of Mechanical Industries in
accordance with Article 9150, V.T.C.S.  Provides that to the extent of a
conflict between this Act and Article 9150, V.T.C.S., that article
prevails. Provides that any reference in this Act to the Texas State Board
of Plumbing Examiners means the Texas State Board Mechanical Industries.
Abolishes the Texas State Board of Plumbing Examiners and provides that the
functions of that board are exercised by the Texas Board of Mechanical
Industries. 
 
SECTION 3.  Amends the Air Conditioning and Refrigeration Contractor
License Law, Article 8861, V.T.C.S., by adding Section 1A, as follows: 

Sec. 1A. FUNCTIONS TRANSFERRED; ADVISORY BOARD ABOLISHED. (a)  Provides
that this Act is administered by the Texas State Board Mechanical
Industries in  accordance with Article 9150, V.T.C.S.  Provides that to the
extent of a conflict between this Act and Article 9150, V.T.C.S., that
article prevails.  

(b)  Provides that any reference in this Act to the Texas Department of
Licensing and Regulation, the commissioner of licensing and regulation, or
the Air Conditioning and Refrigeration Contractors Advisory Board means the
Texas State Board of Mechanical Industries.  

(c)  Abolishes the Air Conditioning and Refrigeration Contractors Advisory
Board and provides that the functions of that board and the functions,
under this Act, of the Texas Department of Licensing and Regulation and the
commissioner of licensing and regulation are exercised by the Texas State
Board of Mechanical Industries.  

SECTION 4. Amends Section 341.033(f),  Health and Safety Code, to provide
that this subsection is administered by the board in accordance with
Article 9150, V.T.C.S., notwithstanding another provision of this chapter. 

SECTION 5. Amends Chapter 372, Health and Safety Code, by adding Section
372.0015, as follows: 

Sec. 372.0015.  FUNCTIONS TRANSFERRED.  Provides that this chapter is
administered by the Texas State Board of Mechanical Industries in
accordance with Article 9150, V.T.C.S. Provides that to the extent of a
conflict between this chapter and Article 9150, V.T.C.S., that article
prevails.  Provides that any reference in this chapter to the Texas Natural
Resource Conservation Commission means the Texas State Board of Mechanical
Industries. 
 
SECTION 6.  Amends Chapter 34, Water Code, by adding Section 34.0015, as
follows: 

Sec. 34.0015.  FUNCTIONS TRANSFERRED; COUNCIL ABOLISHED.  (a)  Provides
that this chapter is administered by the board in accordance with Article
9150, V.T.C.S.. Provides that to the extent of a conflict between this
chapter and Article 9150, V.T.C.S., that article prevails.  

(b) Provides that any reference in this chapter to the Texas Natural
Resource Conservation Commission or the Texas irrigators advisory council
means the Texas State Board of Mechanical Industries.  

(c) Abolishes the Texas irrigators advisory council and provides that the
functions of that board and the functions, under this chapter, of the Texas
Natural Resource Conservation Commission are exercised by the Texas State
Board of Mechanical Industries.  

SECTION 7.  (a)  Requires the governor, as soon as possible after the
effective date of this Act, to appoint the initial members of the board in
accordance with Article 9150, V.T.C.S., as added by this Act. 

(b)  Provides that a person who is serving on the day immediately before
the effective date of this Act as a member of the governing body of an
agency abolished by this Act is eligible for appointment to the board if
the person meets the requirements set forth in Section 2, Article 9150,
V.T.C.S. 

(c)   Requires  the governor, in making the initial appointments to the
Texas State Board of Mechanical Industries, to designate: 
 
(1)  one master plumber member, one licensed backflow prevention specialist
member, one plumbing inspector member, one licensed irrigator member, and
one public member to serve terms expiring February 1, 2001; 

(2)  one journeyman plumber member, one industrial boiler plant operator or
building engineer member, one air conditioning and refrigeration License A
contractor member, one engineer member, and one public member to serve
terms expiring February 1,  2003; and 

(3)  one plumbing contractor member, one boiler installer or service
member, one air conditioning and refrigeration license B member, and two
public members to serve terms expiring February 1, 2005.  

(d)  Prohibits the Texas State Board of Mechanical Industries  from taking
any action until and provides that it is not created until the day after
the date the last appointee to the initial board takes office.  Provides
that on the creation date, the board assumes its functions and: 

(1)  the Air Conditioning and Refrigeration Contractors Advisory Board,
Texas State Board of Plumbing Examiners, and Texas irrigators advisory
council are abolished; 

(2)  the obligations, rights, contracts, records and other property, and
personnel of, and unspent money appropriated to or for, the abolished
boards and council or the governing body for the laws or programs
transferred to the new board under this Act are transferred to the Texas
State Board of Mechanical Industries; 

(3)  the rules of the abolished boards and council or the governing body
for the laws or programs transferred to the new board under this Act are
continued in effect as rules of the Texas State Board of Mechanical
Industries until superseded by rule of the new board; 

(4)  the licenses, certificates, permits, or registrations in effect that
were issued by the abolished boards or council or the governing body for
the laws or programs transferred to the new board under this Act are
continued in effect as licenses, certificates, permits, or registrations of
the Texas State Board of Mechanical Industries; 

(5)  a complaint or investigation pending before the abolished boards or
council or the governing body for the laws or programs transferred to the
new board under this Act is transferred without change in status to the
Texas State Board of Mechanical Industries; 

(6)  a contested case pending before the abolished boards and council or
the governing body for the laws or programs transferred to the new board
under this Act is transferred to the Texas State Board of Mechanical
Industries and actions taken in the proceeding are treated as if taken by
the Texas State Board of Mechanical Industries; and 

(7)  any reference in a law to the abolished boards or council means the
Texas State Board of Mechanical Industries.  

(e)  Provides that the boards and council continue in existence and
requires them to administer their functions under the law that governed the
boards and council before the effective date of this Act, and provides that
the prior law is continued in effect for that purpose, regardless of the
changes in law made by this Act, until the date that the Air Conditioning
and Refrigeration Contractors Advisory Board, Texas State Board of Plumbing
Examiners, and Texas irrigators advisory council are abolished as provided
by this section. 

(f)  Requires the Texas State Board of Mechanical Industries to adopt rules
under this Act no later than December 1, 1999.  

SECTION 8.  Repealer: Sections 4, 4a, 5A, 6, and 7, Article 6243-101,
V.T.C.S. (The Plumbing License Law); Section 3A, Article 8861, V.T.C.S.
(Air Conditioning and Refrigeration Contractor License Law); and Section
34.003, Water Code (Irrigators Advisory Council).  

SECTION 9.Effective date: September 1, 1999. 

 SECTION 10.Emergency clause.    

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original bill by substituting the Texas State
Board of Mechanical Industries (board) for the Texas Board of Plumbing and
Mechanical Work and modifies the caption to make a conforming change. 

The substitute modifies the original in SECTION 1 (proposed Section 2,
Article 9150, V.T.C.S.) to provide that among the board's 15 members are of
one member who has held an air conditioning and refrigeration license A,
rather an air conditioning and refrigeration license, for at least five
years, one member who has held an air conditioning and refrigeration
license B for at least five years, one member who is a licensed irrigation
installer for at least ten years, rather than a licensed irrigator, and one
member who is a licensed irrigation contractor.  Deletes the provision that
includes on the board one industrial boiler plant operator or building
engineer who operates or supervises an industrial boiler in this state.
Makes nonsubstantive changes. 

The substitute modifies the original in SECTION 1 (proposed Section 10,
Article 9150, V.T.C.S.) to require the board to administer and enforce
Section 341.033, Health and Safety Code (relating to the regulation of
certain connections to public drinking water).  Deletes proposed language
in the original which required the board to administer and enforce Chapter
755, Health and Safety Code (relating to the regulation of boilers). 

The substitute modifies the original in SECTION 1 (proposed Section 17,
Article 9150, V.T.C.S.) to require the board, by rule, to establish methods
to notify consumers and service recipients of the license number of the
responsible licensee, in addition to board's name, mailing address, and
telephone number, for the purpose of directing complaints to the board.
Requires the board or the responsible licensee, in order to provide for
such notification, to provide for the company name and license number of
the responsible licensee to be displayed on both sides of vehicles use in
conjunction with a contracting or performing work regulated by the board,
in addition to other specified means of notification. 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) to change the title to "PENALTIES," and deletes
"administrative" from the proposed title of the original.  Makes
nonsubstantive changes. 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) By providing new text for proposed Subsection (a)
to require the board to revoke or suspend a license, endorsement,
certification or registration, probate a license, endorsement,
certification or registration suspension, or reprimand a person or entity
regulated by the board for a violation of this Act or a regulatory statute
administered by the board or any rule adopted under this Act or any rule
adopted under a regulatory statute administered by the board.  Specifies
acts that constitute a violation of this Act.    

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by redesignating Subsections (a) of the original to
Subsections (b) by incorporating Subsection (b) of the original into
proposed Subsection (c)..  

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by providing new text for proposed Subsection (d)
to entitle a person to request a hearing governed by Chapter 2001,
Government Code (Administrative Procedures Act), if the board proposes to
assess an administrative penalty, refuse a person's application for
licensure, endorsement, certification, or registration or to suspend or
revoke a person's license, endorsement, certification, or registration.
Deletes proposed language authorizing the director, if after investigation
of a possible violation the director determines that a violation has
occurred, to issue a violation report stating the facts on which the
conclusion is based, recommend an administrative penalty, and recommend the
amount of that proposed penalty.   
 
The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by providing new text for proposed Subsection (e)
to require the executive director or the executive director's staff
designee to oversee and conduct investigations, conduct informal
conferences, negotiate agreed final orders, draft formal complaints,
recommend administrative penalties, and pursue cases involving violations
of this Act and specified statutes and rules.  Provides that such
proceedings are subject to the Administrative Procedure Act.  Deletes
proposed language requiring the executive director to give written notice
of the report to the person charged, no later than the 14th day after the
date on which the report is issued.  Deletes proposed language requiring
that the notice include a brief summary of the charges, a statement of the
amount of the penalty recommended, and a statement of the right of the
person charged to a hearing on the occurrence of the violation or the
amount of the penalty, or both the occurrence of the violation and the
amount of the penalty.  

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by redesignating proposed Subsection (j) of the
original to Subsection (f) and by requiring a person or entity, rather than
a person, charged with the penalty, within a specified time period, to pay
the penalty in full, or if the person or entity files a petition for
judicial review contesting certain findings, to forward the amount to the
board for placement in an escrow account or, in lieu of payment into
escrow, post with the board a supersedeas bond in a form approved by the
board for the amount of the penalty to be effective until all judicial
review of the order or decision is final.  Deletes proposed language from
Subsection (f) of the original authorizing the person charged to accept the
executive director's determination, including the recommended penalty, or
to make a written request for a hearing on the determination, no later than
the 20th day after the date on which notice is received. 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by redesignating proposed Subsection (k) of the
original to Subsection (g). Deletes proposed language from Subsection (g)
of the original requiring the board to issue an order approving the
determination and ordering the payment of the recommended penalty if the
person charged accepts the  executive director's determination.  Makes
conforming changes. 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by redesignating proposed Subsection (l) to
Subsection (h).  Deletes proposed language requiring the executive director
to set a hearing and give notice of the hearing if the person charged
requests a hearing or fails to timely respond to the notice and requiring
the hearing to be held by a hearing examiner designated by the board.
Deletes proposed language from Subsection (h) of the original requiring the
hearing examiner to make findings of fact and conclusions of law and
promptly issue to the board a proposal for decision as to the violation,
including a recommendation as to the amount of the proposed penalty.
Deletes language authorizing the board, by order, based on the findings of
fact, conclusions of law, and recommendations of the hearing examiner, to
find that a violation has or has not occurred and to assess a penalty for a
violation and providing that all proceedings under this subsection are
subject to Chapter 2001, Government Code.  Makes conforming changes. 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by redesignating proposed Subsection (m) to
Subsection (i). Deletes proposed language from Subsection (i) of the
original requiring the board to give notice of the board's order to the
person charged and specifying the information required to be contained in
the notice. 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by redesignating proposed Subsection (n) to
Subsection (j) and by making conforming changes. 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by redesignating proposed Subsection (o) to
Subsection (k). 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) in proposed Subsection (k) to require a penalty
collected under this Subsection (b), rather than this section, to be
deposited in the general revenue fund. 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by adding new Subsection (l)  to specify the acts
by a person that constitute a Class C misdemeanor under this section.   
 
The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by adding new Subsection (m) to authorize a field
representative of the board, municipality or water district inspector with
proper jurisdiction, or other authorized inspector, to issue citations to
persons who engage in conduct described by Subsection (l). 

The substitute modifies the original in SECTION 1 (proposed Section 22,
Article 9150, V.T.C.S.) by adding new Subsection (n) to authorize the
filing of citations under Subsections (l) and (m) in a county justice court
or municipality court for adjudication of the offense. 

The substitute modifies the original in SECTIONS 2 and 3 to make conforming
changes. 

The substitute modifies the original by adding new SECTION 4 (Section
341.033,  Health and Safety Code) in Subsection (f) to provide that this
subsection is administered by the board in accordance with Article 9150,
V.T.C.S., notwithstanding another provision of this chapter. 

The substitute modifies the original by redesignating proposed SECTION 4
(Section 341.033, Health and Safety Code) of the original to SECTION 5 of
the substitute.   SECTION 5 of the original related to the transfer of
functions mentioned in this chapter from the Texas Natural Resource
Conservation Commission to the board. 

The substitute modifies the original in SECTION 6 to make conforming
changes. 

The substitute modifies the original in SECTION 7 to provide that a person
who is serving on the day immediately before the effective date of this Act
as a member of the governing body of an agency abolished by this Act is
eligible for appointment to the board if the person meets the requirements
set forth in Section 2, Article 9150, V.T.C.S.  Makes conforming changes. 

The substitute modifies the original in SECTION 8 to delete the proposed
repeal of Subchapter B, Chapter 755, Health and Safety Code (Board of
Boiler Rules).  Makes nonsubstantive changes.