89R1590 CJC-F
 
  By: Tepper H.B. No. 1259
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of the State Agency Rules Review
  Commission and the procedures by which state agencies adopt rules.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 3, Government Code, is amended
  by adding Chapter 330 to read as follows:
  CHAPTER 330. STATE AGENCY RULES REVIEW COMMISSION
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 330.0001.  DEFINITIONS. In this chapter:
               (1)  "Commission" means the State Agency Rules Review
  Commission.
               (2)  "Final rule" means a rule adopted by a state agency
  that has not been approved by the commission. The term does not
  include an emergency rule adopted under Section 2001.034.
               (3)  "Revised rule" means a final rule that has been
  revised by the agency in response to an objection by the commission
  to a prior version of the rule.
               (4)  "Rule" has the meaning assigned by Section
  2001.003.
               (5)  "State agency" means a state officer, board,
  commission, or department with statewide jurisdiction that makes
  rules.
         Sec. 330.0002.  APPLICABILITY OF PUBLIC MEETING AND PUBLIC
  INFORMATION LAW. The commission is subject to Chapters 551 and 552.
         Sec. 330.0003.  RULES. (a) The commission shall adopt rules
  as necessary to carry out this chapter.
         (b)  Chapter 2001 applies to the commission.
         Sec. 330.0004.  SUNSET PROVISION. (a) The commission is
  subject to a limited review under Chapter 325 (Texas Sunset Act) but
  may not be abolished under that chapter. The limited review must
  assess the commission's:
               (1)  governance;
               (2)  management;
               (3)  operating structure; and
               (4)  compliance with legislative requirements.
         (b)  The commission shall be reviewed as provided by this
  section every 12th year after the year the commission is first
  reviewed.
         (c)  The first review of the commission shall be completed
  not later than December 31, 2030. This subsection expires August
  31, 2031.
  SUBCHAPTER B. ESTABLISHMENT AND GOVERNANCE
         Sec. 330.0051.  STATE AGENCY RULES REVIEW COMMISSION. The
  State Agency Rules Review Commission is established as an agency of
  the legislative branch of state government.
         Sec. 330.0052.  MEMBERSHIP. (a) The commission consists
  of:
               (1)  four senators appointed by the lieutenant
  governor;
               (2)  four members of the house of representatives
  appointed by the speaker of the house of representatives; and
               (3)  three public members appointed by the governor.
         (b)  The governor, lieutenant governor, and speaker of the
  house of representatives shall appoint a chair and two vice chairs
  as the presiding officers of the commission. The positions of chair
  and vice chairs must alternate every two years between the three
  membership groups appointed by the governor, lieutenant governor,
  and speaker of the house of representatives under Subsection (a).
  The governor, lieutenant governor, and speaker of the house of
  representatives shall each designate a presiding officer from their
  appointed membership group. The chair and the vice chairs may not
  be from the same membership group.
         (c)  A public member acts on behalf of the legislature when
  participating on the commission in furtherance of the legislature's
  duty to provide oversight of the process by which state agencies
  adopt rules.
         Sec. 330.0053.  TERMS; VACANCY. (a) Members of the
  commission serve two-year terms.
         (b)  Members appointed by the lieutenant governor and
  speaker of the house of representatives serve terms staggered so
  that the terms of half of the members appointed by the lieutenant
  governor and the terms of half of the members appointed by the
  speaker of the house of representatives expire September 1 of each
  odd-numbered year. Members appointed by the governor serve terms
  that expire September 1 of each odd-numbered year.
         (c)  If a vacancy occurs, the appropriate appointing
  authority shall appoint a person to serve for the remainder of the
  unexpired term in the same manner as the original appointment.
         (d)  If a member of the legislature appointed to the
  commission ceases to be a member of the house of the legislature
  from which the member was appointed, the member vacates the
  member's place on the commission.
         Sec. 330.0054.  LIMITATION ON TERM OF SERVICE. (a) An
  individual is not eligible for reappointment to another term or
  part of a term on the commission:
               (1)  if the individual is a member of the legislature
  and has served two terms on the commission; or
               (2)  if the member is a public member and has served
  three terms on the commission.
         (b)  For purposes of this section, an individual is
  considered to have served a term if the individual served more than
  half of the term.
         Sec. 330.0055.  ELIGIBILITY PROVISIONS APPLICABLE TO PUBLIC
  MEMBERS. An individual is not eligible for appointment to or
  service on the commission as a public member if the individual or
  the individual's spouse is:
               (1)  regulated by a state agency whose rules the
  commission will review during the term for which the individual
  would serve;
               (2)  employed by, participates in the management of, or
  directly or indirectly has more than a 10 percent ownership
  interest in a business entity or other organization regulated by a
  state agency whose rules the commission will review during the term
  for which the individual would serve; or
               (3)  required to register as a lobbyist under Chapter
  305 because of the individual's activities for compensation on
  behalf of a profession or entity related to the operation of an
  agency whose rules are subject to review under this chapter.
         Sec. 330.0056.  REMOVAL OF PUBLIC MEMBER. (a) It is a
  ground for removal of a public member appointed to the commission
  that the member, for a reason provided under Section 330.0055:
               (1)  was not eligible for appointment to the commission
  at the time of appointment; or
               (2)  is not eligible to continue to serve on the
  commission.
         (b)  The validity of an action by the commission is not
  affected by the fact that the action was taken when a ground for
  removal of a public member of the commission existed.
         Sec. 330.0057.  QUORUM; ACTION BY COMMISSION. (a) Six
  members of the commission constitute a quorum.
         (b)  A final action may not be taken or recommendation may
  not be made by the commission unless the action or recommendation is
  approved by a record vote of a majority of the members of the
  commission.
         Sec. 330.0058.  EXPENSES. (a) A member of the commission is
  entitled to reimbursement for actual and necessary expenses
  incurred by the member in performing commission duties.
         (b)  A member of the commission who is a member of the
  legislature is entitled to reimbursement from the appropriate fund
  of the member's respective house.
         (c)  A public member of the commission is entitled to
  reimbursement from money appropriated to the commission for that
  purpose.
         Sec. 330.0059.  EXECUTIVE DIRECTOR; EMPLOYEES. (a) The
  commission shall employ an executive director to act as the
  executive head of the commission.
         (b)  The executive director shall employ persons necessary
  to carry out this chapter using money appropriated to the
  commission by the legislature for that purpose.
         Sec. 330.0060.  EMPLOYMENT OF STAFF BY MEMBER. (a) A member
  of the commission may employ a staff to work for the member on
  matters related to the member's service on the commission.
         (b)  Unless an appropriation is made to the commission
  specifically for the purpose of paying staff employed by the
  members of the commission, members are responsible for paying the
  costs associated with the members' staff.
  SUBCHAPTER C. REVIEW OF RULES; EFFECT OF REVIEW
         Sec. 330.0101.  REVIEW OF FINAL RULE BY COMMISSION. (a) A
  state agency shall submit each final rule adopted by the agency to
  the commission on the date the agency by order finally adopts the
  rule.
         (b)  Not later than the 30th day after the date the
  commission receives a rule from a state agency, the commission
  shall determine whether:
               (1)  the agency that adopted the rule:
                     (A)  has the authority to adopt the rule; and
                     (B)  complied with Chapter 2001 when adopting the
  rule; and
               (2)  the rule is:
                     (A)  clear and unambiguous; and
                     (B)  reasonably necessary to implement or
  interpret an enactment of the legislature or a federal statute or
  regulation.
         (c)  Not later than the fifth day after the date the
  commission makes a determination under Subsection (b), the
  commission shall:
               (1)  if the commission determines that the requirements
  of Subsection (b) are satisfied:
                     (A)  approve the rule; and
                     (B)  notify the state agency that adopted the rule
  and the secretary of state of the commission's approval of the rule;
  or
               (2)  if the commission determines that the requirements
  of Subsection (b) are not satisfied:
                     (A)  return the rule to the agency; and
                     (B)  provide a clear written statement of the
  commission's determination, including an explanation of the
  commission's objection to the rule.
         (d)  If a state agency submits to the commission a final rule
  that is an amendment to an existing rule, the commission may
  consider both the final rule and the rule amended by the final rule
  when making a determination under Subsection (c).
         (e)  The commission shall make a determination required
  under this section in an open meeting.
         Sec. 330.0102.  STATE AGENCY ACTION ON RETURNED RULE. Not
  later than the 30th day after the date the commission returns a rule
  to a state agency under Section 330.0101(c)(2), the agency shall:
               (1)  revise the rule to address the commission's
  objection to the rule and submit the revised rule to the commission;
  or
               (2)  submit a written response to the commission
  stating that the agency declines to revise the final rule and will
  withdraw the rule.
         Sec. 330.0103.  REVIEW OF REVISED RULE BY COMMISSION. (a)
  Not later than the 30th day after the date a state agency submits a
  revised rule to the commission under Section 330.0102, the
  commission shall determine whether the revised rule:
               (1)  satisfies the requirements of Section
  330.0101(b); and
               (2)  is substantially different from the final rule
  adopted by the agency before the agency revised the final rule.
         (b)  Not later than the fifth day after the date the
  commission makes a determination under Subsection (a), the
  commission shall:
               (1)  if the commission determines that the revised rule
  satisfies the requirements of Section 330.0101(b) and is not
  substantially different from the final rule:
                     (A)  approve the rule; and
                     (B)  notify the state agency that adopted the rule
  and the secretary of state of the commission's approval of the rule;
               (2)  if the commission determines that the revised rule
  does not satisfy the requirements of Section 330.0101(b):
                     (A)  return the rule to the agency for additional
  revision in the manner prescribed by Section 330.0102; and
                     (B)  provide a clear written statement of the
  commission's determination, including an explanation of the
  commission's objection to the rule; or
               (3)  if the commission determines that the revised rule
  satisfies the requirements of Section 330.0101(b) but is
  substantially different from the final rule:
                     (A)  return the rule to the agency for action by
  the agency under Section 330.0104; and
                     (B)  provide a clear written statement of the
  commission's determination.
         (c)  In determining whether a revised rule satisfies the
  requirements of Section 330.0101(b) under this section, the
  commission shall make the determination based solely on whether the
  revised rule addresses the commission's objections to the adopted
  rule provided to the state agency under Section 330.0101(c)(2)(B).
         (d)  The commission shall make a determination required
  under this section in an open meeting.
         Sec. 330.0104.  STATE AGENCY ACTION ON REVISED RULE THAT IS
  SUBSTANTIALLY DIFFERENT. (a) Not later than the 30th day after the
  date the commission notifies a state agency that a revised rule is
  substantially different from a final rule under Section
  330.0103(b)(3), the agency shall:
               (1)  readopt the revised rule as a new rule following
  the procedures prescribed by Subchapter B, Chapter 2001, including
  the procedures contained in Sections 2001.029, 2001.030, and
  2001.031, and submit the rule to the commission for an abbreviated
  review under Section 330.0105; or
               (2)  withdraw the rule.
         (b)  This section does not prohibit a state agency from
  making changes to a revised rule in response to information
  received by the agency under Sections 2001.029, 2001.030, and
  2001.031.
         Sec. 330.0105.  COMMISSION ACTION ON REVISED RULE THAT IS
  SUBSTANTIALLY DIFFERENT. (a) Not later than the 30th day after the
  date the commission receives a revised rule from a state agency
  under Section 330.0104(a)(1), the commission shall:
               (1)  if the agency changed the revised rule under
  Section 330.0104, determine whether the revised rule satisfies the
  requirements of Section 330.0101(b); or
               (2)  if the agency did not change the revised rule under
  Section 330.0104:
                     (A)  approve the rule; and
                     (B)  notify the state agency that adopted the rule
  and the secretary of state of the commission's approval of the rule.
         (b)  Not later than the fifth day after the date the
  commission makes a determination under Subsection (a)(1), the
  commission shall:
               (1)  if the commission determines that the revised rule
  satisfies the requirements of Section 330.0101(b):
                     (A)  approve the rule; and
                     (B)  notify the state agency that adopted the rule
  and the secretary of state of the commission's approval of the rule;
  or
               (2)  if the commission determines that the revised rule
  does not satisfy the requirements of Section 330.0101(b):
                     (A)  return the rule to the agency; and
                     (B)  provide a clear written statement of the
  commission's determination, including an explanation of the
  commission's objection to the rule.
         (c)  Except as otherwise provided by this subsection, a
  revised rule returned to a state agency by the commission under
  Subsection (b)(2) may not take effect or again be revised by the
  agency. If the agency is required to adopt a rule on the subject of
  the revised rule by state or federal law, the agency shall adopt a
  new rule on the subject in the manner prescribed by Chapter 2001 and
  this chapter.
         (d)  The commission shall make a determination required
  under this section in an open meeting.
         Sec. 330.0106.  STATE AGENCY APPEAL OF COMMISSION
  DETERMINATION. (a) A state agency may appeal a determination of the
  commission under this chapter.
         (b)  An appeal under this section shall be conducted by the
  State Office of Administrative Hearings. The appeal is a contested
  case under Chapter 2001.
         Sec. 330.0107.  EXPEDITED REVIEW PROCEDURE. The commission
  may adopt a procedure providing for the expedited review of rules a
  state agency is required to adopt by a certain date to comply with a
  federal statute or regulation.
  SUBCHAPTER D. DETERMINATION OF CERTAIN APPEALS
         Sec. 330.0151.  DETERMINATION OF APPEAL OF PETITION FOR
  ADOPTION OF RULES. (a) Not later than the 30th day after the date
  the commission receives an appeal under Section 2001.021(e), the
  commission shall adopt a final order determining the appeal at an
  open meeting of the commission.
         (b)  A final order adopted under this section must:
               (1)  grant the interested person's appeal and order the
  state agency that is the subject of the appeal to initiate a
  rulemaking proceeding under Chapter 2001 in response to the
  interested person's petition; or
               (2)  deny the interested person's appeal and provide a
  clear written statement of the reasons for the commission's denial.
         SECTION 2.  Subchapter F, Chapter 551, Government Code, is
  amended by adding Section 551.1284 to read as follows:
         Sec. 551.1284.  STATE AGENCY RULES REVIEW COMMISSION:
  INTERNET POSTING OF MEETING MATERIALS AND BROADCAST OF OPEN
  MEETING. (a) In this section, "commission" has the meaning
  assigned by Section 330.0001.
         (b)  The commission, for any regularly scheduled meeting of
  the commission for which notice is required under this chapter,
  shall:
               (1)  post as early as practicable in advance of the
  meeting on the Internet website of the commission any written
  agenda and related supplemental written materials provided to the
  commission members in advance of the meeting by the commission for
  the members' use during the meeting;
               (2)  broadcast the meeting, other than any portion of
  the meeting closed to the public as authorized by law, over the
  Internet in the manner prescribed by Section 551.128; and
               (3)  record the broadcast and make that recording
  publicly available in an online archive located on the commission's
  Internet website.
         (c)  Subsection (b)(1) does not apply to written materials
  that the general counsel or another appropriate attorney for the
  commission certifies are confidential or may be withheld from
  public disclosure under Chapter 552.
         (d)  The commission is not required to comply with the
  requirements of this section if compliance is not possible because
  of an act of God, force majeure, or a similar cause not reasonably
  within the commission's control.
         (e)  The commission shall maintain a publicly accessible
  Internet website for the purpose of complying with this section.
         SECTION 3.  Section 2001.021, Government Code, is amended by
  adding Subsections (e) and (f) to read as follows:
         (e)  If a state agency denies an interested person's petition
  under this section, the interested person may appeal the decision
  to the State Agency Rules Review Commission for determination under
  Section 330.0151.
         (f)  Notwithstanding any other provision of this section, a
  state agency shall initiate a rulemaking proceeding under this
  subchapter if the State Agency Rules Review Commission adopts a
  final order requiring the agency to do so under Section 330.0151.
         SECTION 4.  Section 2001.024, Government Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  In addition to any other information required by this
  section, the notice for a rule that is subject to review by the
  State Agency Rules Review Commission must state that the rule may
  not take effect until the commission notifies the secretary of
  state that the commission has approved the rule.
         SECTION 5.  Section 2001.036, Government Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  A rule takes effect on the later of:
               (1)  the 20th day [20 days] after the date on which the
  rule [it] is filed in the office of the secretary of state; or
               (2)  the date the State Agency Rules Review Commission
  notifies the secretary of state that the commission has approved
  the rule.
         (a-1)  Notwithstanding Subsection (a), a rule may take
  effect on a date other than the date prescribed by that subsection
  if [, except that]:
               (1)  [if] a later date is required by statute or
  specified in the rule, in which case that [the] later date is the
  effective date of the rule;
               (2)  subject to applicable constitutional or statutory
  provisions, [if] a state agency finds that an expedited effective
  date for the rule is necessary because of imminent peril to the
  public health, safety, or welfare, in which case the [and subject to
  applicable constitutional or statutory provisions, a] rule is
  effective immediately on filing with the secretary of state[,] or
  on a stated date less than 20 days after the filing date; or [and]
               (3)  [if] a federal statute or regulation requires
  [that] a state agency to implement the [a] rule by a certain date,
  in which case the rule is effective on the prescribed date, provided
  that the date may not be earlier than the date prescribed by
  Subsection (a)(2).
         SECTION 6.  Section 141.008(a), Health and Safety Code, is
  amended to read as follows:
         (a)  The executive commissioner may adopt rules to implement
  this chapter.  In adopting the rules the executive commissioner
  shall comply with Subchapter B, Chapter 2001, Government Code,
  including Section [Sections 2001.032(b) and] 2001.033, Government
  Code.  In developing the rules to be adopted by the executive
  commissioner, the department shall consult parents, youth camp
  operators, and appropriate public and private officials and
  organizations.
         SECTION 7.  Section 2001.032, Government Code, is repealed.
         SECTION 8.  (a) Not later than November 1, 2025, the
  governor, lieutenant governor, and speaker of the house of
  representatives shall make their initial appointments to the State
  Agency Rules Review Commission as required by Section 330.0052(a),
  Government Code, as added by this Act.
         (b)  Notwithstanding Section 330.0053, Government Code, as
  added by this Act, with respect to the initial members appointed
  under Subsection (a) of this section:
               (1)  the three members appointed by the governor serve
  an initial term that begins November 1, 2025, and expires September
  1, 2027;
               (2)  two of the four members appointed by the
  lieutenant governor and two of the four members appointed by the
  speaker of the house of representatives serve an initial term that
  begins November 1, 2025, and expires September 1, 2026; and
               (3)  two of the four members appointed by the
  lieutenant governor and two of the four members appointed by the
  speaker of the house of representatives serve an initial term that
  begins November 1, 2025, and expires September 1, 2027.
         SECTION 9.  The changes in law made by this Act apply to a
  rule adopted by a state agency on or after the effective date of
  this Act. A rule adopted before the effective date of this Act is
  governed by the law in effect on the date the rule is adopted, and
  the former law is continued in effect for that purpose.
         SECTION 10.  (a) Except as provided by Subsection (b) of
  this section, this Act takes effect January 1, 2026.
         (b)  Section 8 of this Act takes effect September 1, 2025.