88R25161 JRR-D By: Morales Shaw, Goodwin, Zwiener, Guillen, H.B. No. 3913 Thompson of Brazoria Substitute the following for H.B. No. 3913: By: Landgraf C.S.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) One-half of the state's portion of a civil penalty under Subsection (a) shall be deposited to the credit of the special 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. SPECIAL ENVIRONMENTAL REMEDIATION FUND; GRANT PROGRAM. (a) The environmental remediation fund is created as a special fund in the state treasury outside the general revenue fund. The fund consists of money deposited to the credit of the fund under Section 7.107. Money in the fund may be appropriated only to the commission for purposes of the grant program established under Subsection (b). (b) From money appropriated from the special environmental remediation fund for that purpose, the commission shall establish and administer a grant program to provide financial assistance to counties and municipalities for environmental remediation projects. (c) The commission shall adopt rules to implement the program established under Subsection (b), including rules establishing: (1) eligibility criteria for grant applicants and environmental remediation projects; (2) grant application procedures; (3) criteria for evaluating grant applications and awarding grants; (4) guidelines related to grant amounts; and (5) procedures for monitoring the use of a grant awarded under Subsection (b) and ensuring compliance with any conditions of the grant. 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.