BILL ANALYSIS S.B. 424 By: Madla Natural Resources 03-15-95 Committee Report (Amended) 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 As proposed, S.B. 424 requires 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. Effective date: upon passage.