88R12376 JRR-D By: Morales Shaw H.B. No. 3913 A BILL TO BE ENTITLED AN ACT relating to the disposition and use of the state's portion of civil penalties recovered in suits brought by local governments for violations of certain laws under the jurisdiction of, or rules adopted or orders or permits issued by, the Texas Commission on Environmental Quality. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 7.107, Water Code, is amended to read as follows: Sec. 7.107. DIVISION OF CIVIL PENALTY; DISPOSITION OF STATE'S PORTION OF CIVIL PENALTY. (a) Except in a suit brought for a violation of Chapter 28 of this code or of Chapter 401, Health and Safety Code, a civil penalty recovered in a suit brought under this subchapter by a local government shall be divided as follows: (1) the first $4.3 million of the amount recovered shall be divided equally between: (A) the state; and (B) the local government that brought the suit; and (2) any amount recovered in excess of $4.3 million shall be awarded to the state. (b) The state's portion of a civil penalty under Subsection (a) shall be deposited to the credit of the environmental remediation fund created under Section 7.1075. SECTION 2. Subchapter D, Chapter 7, Water Code, is amended by adding Section 7.1075 to read as follows: Sec. 7.1075. ENVIRONMENTAL REMEDIATION FUND. (a) The environmental remediation fund is created as a fund in the state treasury, administered by the commission. (b) The environmental remediation fund consists of money deposited to the credit of the fund under Section 7.107. (c) Money in the fund may be used only for environmental remediation projects. (d) In using money in the fund, the commission shall give preference to environmental remediation projects that are located in counties in which a violation for which a civil penalty was deposited to the fund under Section 7.107 occurred. SECTION 3. The change in law made by this Act applies only to a violation that occurs on or after the effective date of this Act. A violation that occurs before the effective date of this Act is governed by the law in effect on the date the violation occurred, and the former law is continued in effect for that purpose. SECTION 4. This Act takes effect September 1, 2023.