BILL ANALYSIS C.S.S.B. 1322 By: Armbrister Natural Resources 05-03-95 Committee Report (Substituted) BACKGROUND Texas Natural Resource Conservation Commission contested case hearings are complex and extremely time consuming. Under current procedures, the applicant must ensure that every finding of fact necessary to support issuance of a permit is proven in the record, regardless of whether every necessary finding of fact is challenged in the hearing. The protestant who requested the hearing is afforded the opportunity to challenge each factual issue and is not required to identify specifically where a proposed permit does not comply with the relevant rules and regulations. PURPOSE As proposed, C.S.S.B. 1322 sets forth procedural requirements for contested case hearing procedures, established by the rules of the Texas Natural Resource Conservation Commission, that apply to the granting, amendment, renewal, or revocation of certain licenses and permits. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Texas Natural Resource Conservation Commission under SECTION 2 (Section 5.103(b), Water Code) and SECTION 3 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 5.102, Water Code, by adding Subsection (c), to require Chapter 2001, Government Code, to apply to all proceedings of the Texas Natural Resource Conservation Commission (commission) except to the extent that chapter is inconsistent with this code or other laws administered by the commission. SECTION 2. Amends Section 5.103, Water Code, as follows: (a) Makes no change. (b) Requires any commission rule establishing contested case hearing procedures applicable to the granting, amendment, or renewal of a license or permit under Chapter 361 or 382, Health and Safety Code, or Chapter 26 or 27 of this code, to comply with procedural requirements that: the commission's draft permit and the application, as well as any amendments or supplements thereto submitted during the hearing shall be received into the evidentiary record at the hearing; each factual representation contained in the application, to the extent not inconsistent with the permit and not controverted by testimony or evidence, shall be deemed true and correct; any party desiring to challenge the appropriateness of any term, condition, or provision of the draft permit shall bear the burdens of production and persuasion; and the draft permit shall be adopted by the commission as written unless a party establishes that the permit should be modified or denied. (c) Created from existing text. (d) Redesignates existing Subsection (c). Makes conforming and nonsubstantive changes. SECTION 3. Requires the commission to adopt rules implementing the hearing procedures described in Section 2 within 90 days following the effective date of this Act. Declares that such rules apply to any application filed pursuant to Chapter 26 or 27, Water Code, or Chapter 361 or 382, Health and Safety Code, which are pending on the effective date of such rules or which are filed subsequent to the enactment of such rules. SECTION 4. Emergency clause. Effective date: 90 days after adjournment.