30 TAC §12.3
The Texas Natural Resource Conservation Commission (commission)
adopts amendments to §12.3, concerning Penalty and Interest on Delinquent
Fees. The amendments are adopted without changes to the proposed text as published
in the December 31, 1999, issue of the
Texas Register
(24 TexReg 11897) and will not be republished.
BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED RULES
The commission adopts amendments to §12.3 to be consistent with the
amended Texas Tax Code, §111.060 and §111.061. The amendments establish
a variable interest rate, based on the prime rate plus 1.0%, in accordance
with provisions of Senate Bill (SB) 1321 effective January 1, 2000. Section
12.3 was established to provide uniform and consistent requirements for the
assessment of penalties and interest for the late payment of fees owed the
state under the commission's jurisdiction as required by Texas Water Code, §5.235.
By establishing centralized provisions in §12.3, any further changes
in the Tax Code would require that the agency amend only one section of its
rules. SB 1321 and Texas Tax Code, §111.060 and §111.061, establish
a variable interest rate, based on the prime rate plus 1.0%, effective January
1, 2000.
SECTION BY SECTION DISCUSSION
Section 12.3 is amended by deleting the existing language in subsection
(c) "The yearly interest rate on all delinquent fees required under this title
is 12 %" and replacing it with "The yearly rate on all delinquent fees required
under this title is the prime rate plus 1.0 % as published in the Wall Street
Journal on the first day of each calendar year that is not a Saturday, Sunday,
or legal holiday."
FINAL REGULATORY IMPACT ANALYSIS
The rules are not subject to §2001.0225 because they do not meet the
definition of "major environmental rule" as defined in that statue. The rules
establish the yearly interest rate on all delinquent fees to be in accordance
with the interest rate in the amended Texas Tax Code and are not specifically
intended to protect the environment or reduce risks to human health from environmental
exposure. In addition, the rules do not meet any of the four applicability
requirements of a "major environmental rule" defined in Texas Government Code,
Chapter 2001.0225(a). More particularly, they are specifically authorized
by §5.235 which allows the executive director to charge and collect fees
prescribed by law. The rules establish a variable rate, based on the prime
rate plus 1.0% (in accordance with provisions of SB 1321, the Texas Tax Code, §111.060
and §111.061) and do not exceed this express requirement of state law.
There is no federal law or federal delegation agreement specifically applicable
to interest rates charged on delinquent fees owed the state.
TAKINGS IMPACT ASSESSMENT
The specific purpose of the rulemaking is to amend §12.3 to allow
the yearly interest rate on all delinquent fees to be in accordance with those
established in the amended Texas Tax Code. The amendments establish a variable
interest rate, based on the prime rate plus 1.0%, in accordance with provisions
of SB 1321, 76th Legislature. The previous interest rate of 12% per annum
is replaced for the year 2000 by the prime interest rate of 8.5 % as published
in the Wall Street Journal on January 3, 2000, plus 1.0% or 9.5 %. This annual
adjustment in interest rates will more closely parallel the real cost of money.
The amendments are not an environmental law, but an administrative change
to collection rates imposed for non-payment of a delinquent fee. Imposition
of interest on delinquent fees is inherent to all governments. Promulgation
and enforcement of these rules will not burden private real property because
the rule applies only to monetary obligations or debts owed the state in the
nature of fees. The amendments do not constitute a takings under Texas Government
Code, Chapter 2007.
COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW
The commission has reviewed the proposed rulemaking and found that the
rules are neither identified in Coastal Coordination Act Implementation Rules,
31 TAC, §505.11, relating to Actions and Rules Subject to the Texas Coastal
Management Program (CMP), nor will it affect any action/authorization identified
in Coastal Coordination Act Implementation Rules, 31 TAC, 505.11.Therefore,
the proposed rules are not subject to the CMP.
HEARING AND COMMENTERS
A public hearing was held on January 18, 2000, in Austin, no oral comments
were received. The written comment period closed January 31, 2000.
ANALYSIS OF TESTIMONY
No comments were received regarding the proposed amendments to this chapter.
STATUTORY AUTHORITY
This amendment is adopted under Texas Water Code, §5.103, which provide
the Texas Natural Resource Conservation Commission (commission) with the authority
to adopt any rules necessary to carry out its powers and duties under the
laws of this state; §5.235, which provide the commission with the authority
to assess penalties and interest that do not exceed the penalties and interest
rates established in Texas Tax Code and SB 1321.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on March 10, 2000.
TRD-200001861
Margaret Hoffman
Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Effective date: March 30, 2000
Proposal publication date: December 31, 1999
For further information, please call: (512) 239-6087