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.