Bill Text: TX HB3477 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to the termination of corporate privileges for certain business entities under enforcement action for a violation of environmental laws.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2021-05-13 - Record vote RV#1086 [HB3477 Detail]

Download: Texas-2021-HB3477-Introduced.html
  87R10494 JXC-D
 
  By: Rose H.B. No. 3477
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the termination of corporate privileges for certain
  business entities under enforcement action for a violation of
  environmental laws.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.251(b), Business Organizations Code,
  is amended to read as follows:
         (b)  The secretary of state may terminate a filing entity's
  existence if:
               (1)  the secretary finds that:
                     (A) [(1)]  the entity has failed to, and, before
  the 91st day after the date notice was mailed has not corrected the
  entity's failure to:
                           (i) [(A)]  file a report within the period
  required by law or pay a fee or penalty prescribed by law when due
  and payable; or
                           (ii) [(B)]  maintain a registered agent or
  registered office in this state as required by law; or
                     (B) [(2)]  the entity has failed to, and, before
  the 16th day after the date notice was mailed has not corrected the
  entity's failure to, pay a fee required in connection with the
  filing of its certificate of formation, or payment of the fee was
  dishonored when presented by the state for payment; or
               (2)  the Texas Commission on Environmental Quality has
  issued an order of termination under Subchapter I, Chapter 7, Water
  Code.
         SECTION 2.  Section 11.253(a), Business Organizations Code,
  is amended to read as follows:
         (a)  The secretary of state shall reinstate a filing entity
  that has been involuntarily terminated under this subchapter if the
  entity files a certificate of reinstatement in accordance with
  Chapter 4 and:
               (1)  the entity has corrected the circumstances that
  led to the involuntary termination and any other circumstances that
  may exist of the types described by Section 11.251(b)(1)
  [11.251(b)], including the payment of fees, interest, or penalties;
  [or]
               (2)  the Texas Commission on Environmental Quality has
  issued an order of reinstatement under Subchapter I, Chapter 7,
  Water Code, if the involuntary termination was based on an order of
  termination under Subchapter I, Chapter 7, Water Code; or
               (3)  the secretary of state finds that the
  circumstances that led to the involuntary termination did not exist
  at the time of termination.
         SECTION 3.  Chapter 7, Water Code, is amended by adding
  Subchapter I to read as follows:
  SUBCHAPTER I. TERMINATION OF CORPORATE PRIVILEGES
         Sec. 7.401.  DEFINITIONS. In this subchapter:
               (1)  "Environmental disaster" means a violation of law
  under the jurisdiction of the commission resulting in significant
  harm to human life.
               (2)  "Filing entity" means a domestic entity that is a
  corporation, limited partnership, limited liability company,
  professional association, cooperative, or real estate investment
  trust.
         Sec. 7.402.  ENVIRONMENTAL DISASTER. (a) The commission
  shall adopt rules to establish criteria for determining whether a
  filing entity that is subject to an enforcement action under this
  chapter is responsible for an environmental disaster in this state.
         (b)  In adopting rules under this section, the commission
  shall consider whether a violation leading to an enforcement action
  has caused:
               (1)  an increase in fatal diseases, including cancer,
  in the population near the facility where the violation occurred;
               (2)  contaminated water;
               (3)  contaminated air; or
               (4)  a negative effect on the quality of life of the
  population near the facility where the violation occurred.
         Sec. 7.403.  TERMINATION OF CORPORATE PRIVILEGES. (a) If
  the commission determines that a filing entity that is subject to an
  enforcement action under this chapter is responsible for an
  environmental disaster in this state, the commission shall:
               (1)  issue an order for the termination of the filing
  entity; and
               (2)  deliver a copy of the order to the secretary of
  state and the filing entity.
         (b)  An order issued under this section must include a
  provision for how the filing entity may meet requirements for
  reinstatement through the remediation of the environmental
  disaster.
         Sec. 7.404.  REINSTATEMENT OF CORPORATE PRIVILEGES. (a) A
  filing entity that receives a termination order under this
  subchapter may file with the commission evidence showing that the
  filing entity has met the remediation requirements described by the
  termination order.
         (b)  If the commission determines that the filing entity has
  met the remediation requirements of the termination order, the
  commission shall:
               (1)  issue an order for the reinstatement of the filing
  entity; and 
               (2)  deliver a copy of the order to the secretary of
  state and the filing entity.
         SECTION 4.  Section 11.251(b), Business Organizations Code,
  as amended by this Act, applies only to a filing entity for which
  the Texas Commission on Environmental Quality issues an order under
  Subchapter I, Chapter 7, Water Code, as added by this Act, for a
  violation committed on or after the effective date of this Act. If
  the violation was committed before the effective date of this Act,
  the filing entity is governed by the law in effect on the date the
  violation was committed, and the former law is continued in effect
  for that purpose. For purposes of this section, a violation was
  committed before the effective date of this Act if any element of
  the violation occurred before that date.
         SECTION 5.  This Act takes effect September 1, 2021.
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