BILL ANALYSIS S.B. 424 By: Madla (Puente) 4-24-95 Committee Report (Unamended) BACKGROUND Civil or administrative penalties assessed by the Texas Natural Resource Conservation Commission (TNRCC) for violations of law are due and payable at the time of assessment. However, the TNRCC has allowed some small businesses whose existence might be threatened by a large lump sum demand for payment the opportunity to pay these fines or penalties over a short period of time. There are no specific criteria established to determine who is eligible to pay a fine or penalty over time, the time frame for the payment schedule, or the amount of each payment. PURPOSE To require the Texas Natural Resource Conservation Commission to adopt rules relating to the payment of penalties by periodic installments. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Texas Natural Resource Conservation Commission under SECTION 1 (Section 5.1175, Chapter 5D, Water Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 5D, Water Code, by adding Section 5.1175, as follows: Sec. 5.1175. PAYMENT OF PENALTY BY INSTALLMENT. (a) Requires the Texas Natural Resource Conservation Commission (commission), by rule, to allow a small business that owes a monetary civil or administrative penalty imposed for a violation of law within the commission's jurisdiction or a violation of a license, permit, order issued, or rule adopted by the commission to pay periodic installments. Requires the rule to provide a procedure for qualified small businesses to pay the penalty over time. (b) Requires the rule to classify small businesses by their net annual receipts and number of employees. Prohibits a business that is a subsidiary of a corporation from qualifying as a small business. (c) Authorizes the rule to vary the period over which the penalty may be paid or the amount of the periodic installments according to the size of the penalty and the size of the penalty. Prohibits the period over which the penalty may be paid from exceeding 12 months. SECTION 2. Requires the commission to adopt the rule required by Section 5.1175, Water Code, as added by this Act, to take effect as soon as practicable but no later than January 1, 1996. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION S.B.424 was considered by the committee in a public hearing on April 24, 1995. The following persons testified in favor of the bill: None (0). The following persons testified against the bill: None (0). The following person testified on the bill: Ms. Tamra-Shae Oatman, representing TNRCC. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 8 ayes, 0 nays, 0 pnv, 1 absent.