Texas 2021 - 87th Regular

Texas House Bill HB3477 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R10494 JXC-D
2	2	By: Rose H.B. No. 3477
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the termination of corporate privileges for certain
8	8	business entities under enforcement action for a violation of
9	9	environmental laws.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.251(b), Business Organizations Code,
12	12	is amended to read as follows:
13	13	(b) The secretary of state may terminate a filing entity's
14	14	existence if:
15	15	(1) the secretary finds that:
16	16	(A) [(1)] the entity has failed to, and, before
17	17	the 91st day after the date notice was mailed has not corrected the
18	18	entity's failure to:
19	19	(i) [(A)] file a report within the period
20	20	required by law or pay a fee or penalty prescribed by law when due
21	21	and payable; or
22	22	(ii) [(B)] maintain a registered agent or
23	23	registered office in this state as required by law; or
24	24	(B) [(2)] the entity has failed to, and, before
25	25	the 16th day after the date notice was mailed has not corrected the
26	26	entity's failure to, pay a fee required in connection with the
27	27	filing of its certificate of formation, or payment of the fee was
28	28	dishonored when presented by the state for payment; or
29	29	(2) the Texas Commission on Environmental Quality has
30	30	issued an order of termination under Subchapter I, Chapter 7, Water
31	31	Code.
32	32	SECTION 2. Section 11.253(a), Business Organizations Code,
33	33	is amended to read as follows:
34	34	(a) The secretary of state shall reinstate a filing entity
35	35	that has been involuntarily terminated under this subchapter if the
36	36	entity files a certificate of reinstatement in accordance with
37	37	Chapter 4 and:
38	38	(1) the entity has corrected the circumstances that
39	39	led to the involuntary termination and any other circumstances that
40	40	may exist of the types described by Section 11.251(b)(1)
41	41	[11.251(b)], including the payment of fees, interest, or penalties;
42	42	[or]
43	43	(2) the Texas Commission on Environmental Quality has
44	44	issued an order of reinstatement under Subchapter I, Chapter 7,
45	45	Water Code, if the involuntary termination was based on an order of
46	46	termination under Subchapter I, Chapter 7, Water Code; or
47	47	(3) the secretary of state finds that the
48	48	circumstances that led to the involuntary termination did not exist
49	49	at the time of termination.
50	50	SECTION 3. Chapter 7, Water Code, is amended by adding
51	51	Subchapter I to read as follows:
52	52	SUBCHAPTER I. TERMINATION OF CORPORATE PRIVILEGES
53	53	Sec. 7.401. DEFINITIONS. In this subchapter:
54	54	(1) "Environmental disaster" means a violation of law
55	55	under the jurisdiction of the commission resulting in significant
56	56	harm to human life.
57	57	(2) "Filing entity" means a domestic entity that is a
58	58	corporation, limited partnership, limited liability company,
59	59	professional association, cooperative, or real estate investment
60	60	trust.
61	61	Sec. 7.402. ENVIRONMENTAL DISASTER. (a) The commission
62	62	shall adopt rules to establish criteria for determining whether a
63	63	filing entity that is subject to an enforcement action under this
64	64	chapter is responsible for an environmental disaster in this state.
65	65	(b) In adopting rules under this section, the commission
66	66	shall consider whether a violation leading to an enforcement action
67	67	has caused:
68	68	(1) an increase in fatal diseases, including cancer,
69	69	in the population near the facility where the violation occurred;
70	70	(2) contaminated water;
71	71	(3) contaminated air; or
72	72	(4) a negative effect on the quality of life of the
73	73	population near the facility where the violation occurred.
74	74	Sec. 7.403. TERMINATION OF CORPORATE PRIVILEGES. (a) If
75	75	the commission determines that a filing entity that is subject to an
76	76	enforcement action under this chapter is responsible for an
77	77	environmental disaster in this state, the commission shall:
78	78	(1) issue an order for the termination of the filing
79	79	entity; and
80	80	(2) deliver a copy of the order to the secretary of
81	81	state and the filing entity.
82	82	(b) An order issued under this section must include a
83	83	provision for how the filing entity may meet requirements for
84	84	reinstatement through the remediation of the environmental
85	85	disaster.
86	86	Sec. 7.404. REINSTATEMENT OF CORPORATE PRIVILEGES. (a) A
87	87	filing entity that receives a termination order under this
88	88	subchapter may file with the commission evidence showing that the
89	89	filing entity has met the remediation requirements described by the
90	90	termination order.
91	91	(b) If the commission determines that the filing entity has
92	92	met the remediation requirements of the termination order, the
93	93	commission shall:
94	94	(1) issue an order for the reinstatement of the filing
95	95	entity; and
96	96	(2) deliver a copy of the order to the secretary of
97	97	state and the filing entity.
98	98	SECTION 4. Section 11.251(b), Business Organizations Code,
99	99	as amended by this Act, applies only to a filing entity for which
100	100	the Texas Commission on Environmental Quality issues an order under
101	101	Subchapter I, Chapter 7, Water Code, as added by this Act, for a
102	102	violation committed on or after the effective date of this Act. If
103	103	the violation was committed before the effective date of this Act,
104	104	the filing entity is governed by the law in effect on the date the
105	105	violation was committed, and the former law is continued in effect
106	106	for that purpose. For purposes of this section, a violation was
107	107	committed before the effective date of this Act if any element of
108	108	the violation occurred before that date.
109	109	SECTION 5. This Act takes effect September 1, 2021.