HBA-MPM S.B. 1433 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1433 By: Duncan Environmental Regulation 5/11/1999 Engrossed BACKGROUND AND PURPOSE Current law authorizes the Texas Natural Resource Conservation Commission (TNRCC) to establish by rule consistent requirements for the assessment of penalties and interest for late payment of fees owed the state under TNRCC's jurisdiction. Penalties and interest established under this authority may not exceed the rates established for delinquent taxes under the Tax Code. S.B. 1433 authorizes assessment of certain penalties and interest by TNRCC. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter D, Chapter 5, Water Code, by adding Section 5.125, as follows: Sec. 5.125. PENALTIES AND INTEREST ON DELINQUENT FEES. (a) Authorizes the Texas Natural Resource Conservation Commission (TNRCC), except as provided by law, to collect certain penalties for a delinquent fee due to TNRCC under this code or the Health and Safety Code. Provides that the penalty may be in an amount equal to five percent of the amount of the fee due, if the fee is not paid on the due date, and an additional penalty in an amount equal to five percent of the amount due, if the fee is not paid on or before the 30th day after it was due. (b) Provides that unless provided by law, interest accrues beginning the 61st day after the fee was due on the total amount of fee and penalties that have not been paid on or before the 61st day after the fee was due. Provides that the yearly interest rate is that established for delinquent taxes under Section 111.060 (Interest on Delinquent Tax), Tax Code. (c) Authorizes the executive director of TNRCC, for good cause, to waive a penalty or interest on a fee and penalties authorized by this section. (d) Requires penalties and interest collected by TNRCC under this section or other law, unless that law otherwise provides, to be deposited to the credit of the fund or account to which the fee is required to be deposited. SECTION 2. Amends Subchapter G, Chapter 26, Water Code, by adding Section 26.2651, as follows: Sec. 26.2651. INTEREST ON UNPAID BALANCE OF RECOVERABLE COSTS. Authorizes TNRCC to collect interest on the unpaid balance of costs recoverable under Section 26.265 (Texas Spill Response Account), Water Code. Provides that interest accrues beginning on the date that payment of a specific amount is demanded in writing or the date of the expenditure, whichever is later. Provides that the interest rate on the unpaid balance of amounts recoverable is the same as that established by TNRCC under Section 361.140 (Interest and Penalties), Health and Safety Code. Requires interest collected under this subsection to be deposited to the credit of the Texas spill response account. SECTION 3. Amends Subchapter I, Chapter 26, Water Code, by adding Section 26.3551, as follows: Sec. 26.3551. INTEREST ON UNPAID BALANCE OF RECOVERABLE COSTS. Authorizes TNRCC to collect interest on the unpaid balance of costs recoverable under Section 26.355 (Recovery of Costs), Water Code. Provides that interest accrues beginning on the date payment of a specified amount is demanded in writing or the date of the expenditure, whichever is later. Provides that the interest rate on the unpaid balance of the amounts recoverable is the same as that established by TNRCC under Section 361.140 (Interest and Penalties), Health and Safety Code. Requires interest collected under this subsection to be deposited to the credit of the petroleum storage tank remediation account. SECTION 4. Amends Section 361.197, Health and Safety Code, by adding Subsection (e), as follows: (e) Requires TNRCC to collect interest on the unpaid balance of costs recoverable under Subsections (b) and (c). Provides that interest accrues beginning on the date payment of a specified amount is demanded in writing or the date of the expenditure, whichever is later. Provides that the interest rate on the unpaid balance of the amounts recoverable is the same as that established by TNRCC under Section 361.140, Health and Safety Code. Requires interest collected under this subsection to be deposited to the credit of the hazardous and solid waste remediation fee account. Subsections (b) and (c) state, respectively, that the state may seek a judgment against noncompliant parties for certain costs and that the action may also include a plea seeking civil penalties for noncompliance with TNRCC's administrative order and a claim for up to triple the state's costs if the responsible party's defenses are determined by the court to be unreasonable, frivolous, or without foundation. SECTION 5. Effective date: September 1, 1999. SECTION 6. Makes application of this Act prospective. SECTION 7. Emergency clause.