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 - Dead) 2021-05-13 - Record vote RV#1086 [HB3477 Detail]
Download: Texas-2021-HB3477-Introduced.html
87R10494 JXC-D | ||
By: Rose | H.B. No. 3477 |
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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) [ |
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the 91st day after the date notice was mailed has not corrected the | ||
entity's failure to: | ||
(i) [ |
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required by law or pay a fee or penalty prescribed by law when due | ||
and payable; or | ||
(ii) [ |
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registered office in this state as required by law; or | ||
(B) [ |
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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) | ||
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(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. |