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.