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.