HBA-DMH S.B. 1071 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1071
By: Armbrister
Environmental Regulation
4/12/2001
Engrossed



BACKGROUND AND PURPOSE 

The 76th Texas Legislature enacted legislation to create a new procedure
for contested case proceedings on certain environmental permitting actions
by the Texas Natural Resource Conservation Commission (TNRCC).  The
legislation required early notice of applications, more detailed public
comments, and a narrowing of contested issues prior to a referral of a
matter to the State Office of Administrative Hearings for a contested case
hearing.  The legislation intended to increase public participation and
streamline contested case matters before TNRCC. Both industry and
environmental groups believed that early review of an application and an
examination of disputed issues would result in more efficient, less costly
permit proceedings.  Senate Bill 1071 provides applicants the option of
proceeding directly to a contested case hearing after the executive
director of TNRCC issues a preliminary decision. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Natural Resource Conservation
Commission in SECTION 1 (Section 5.557, Water Code) and SECTION 3 of this
bill. 

ANALYSIS

Senate Bill  1071 amends the Water and Health and Safety codes relating to
contested case hearings regarding applications for certain environmental
permits.  The bill requires the Texas Natural Resource Conservation
Commission (TNRCC) or the general counsel, after the executive director of
TNRCC issues a preliminary decision on a benefit and public purpose
application and on the request of the applicant, to refer the application
directly to the State Office of Administrative Hearings for a contested
case hearing on whether the application complies with all applicable
statutory and regulatory requirements.  The bill requires TNRCC by rule to
provide for public comment and the executive director's response to public
comment to be entered into the administrative record of decision on an
application for a permit under a delegated or authorized federal program if
the comment and response are required for permit decisions under that
program.  The bill requires TNRCC to adopt rules to implement these
provisions as soon as is necessary for the rules to take effect on or
before January 1, 2002.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.