73R7121 CAG-F
          By Earley                                              H.B. No. 656
          Substitute the following for H.B. No. 656:
          By Saunders                                        C.S.H.B. No. 656
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the calculation of costs of environmental mandates for
    1-3  local governments.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  SHORT TITLE.  This Act may be cited as the
    1-6  Comprehensive Environmental Mandate Act.
    1-7        SECTION 2.  DEFINITIONS.  In this Act:
    1-8              (1)  "Environmental mandate" means a statute or state
    1-9  agency rule that requires a local government to modify its water
   1-10  quality, air quality, or solid waste activities in a way that
   1-11  requires it to make additional expenditures or restricts its
   1-12  ability to raise revenues and that imposes a penalty for
   1-13  noncompliance.  The term does not include a permit, permit
   1-14  amendment, or enforcement order or a statute or agency rule
   1-15  required by federal law to the extent the statute or agency rule
   1-16  does not exceed minimum federal requirements.
   1-17              (2)  "Local government" means a county or municipality.
   1-18              (3)  "Preparing agency" means the comptroller of public
   1-19  accounts.
   1-20        SECTION 3.  FISCAL NOTE CONTENTS AND PREPARATION.  (a)  The
   1-21  probable cost stated in a fiscal note prepared under this Act shall
   1-22  be in numeric form unless insufficient information exists to
   1-23  produce a numerical estimate.  If insufficient information exists
    2-1  to produce a numerical estimate, the preparing agency shall provide
    2-2  a written description of the likely impacts of the environmental
    2-3  mandate in language that is as precise as the preparing agency is
    2-4  able to provide, including sample costs for affected local
    2-5  governments, if available.
    2-6        (b)  A state agency shall cooperate with the preparing agency
    2-7  when requested by the director of the preparing agency and may
    2-8  offer an opinion on the benefit of the environmental mandate.
    2-9        (c)  The preparing agency may use information supplied by any
   2-10  person, agency, organization, or governmental unit that the
   2-11  preparing agency finds reliable.
   2-12        (d)  The preparing agency may  offer an opinion on the
   2-13  benefit of the environmental mandate.
   2-14        SECTION 4.  PROPOSED LEGISLATION CONTAINING ENVIRONMENTAL
   2-15  MANDATES.  (a)  The presiding officer of a legislative committee to
   2-16  which a bill containing an environmental mandate is referred shall
   2-17  submit the bill to the preparing agency for preparation of a fiscal
   2-18  note to analyze the probable fiscal effects of the mandate on local
   2-19  governments.  If the preparing agency determines that the bill does
   2-20  not contain an environmental mandate, it shall inform the committee
   2-21  in writing, and that determination is final.
   2-22        (b)  A committee to which a bill containing an environmental
   2-23  mandate is referred may not vote on a bill unless it is accompanied
   2-24  by a fiscal note that complies with this Act.  If the bill is
   2-25  enacted, the legislator who is the author of the bill shall ensure
    3-1  that the bill is accompanied by an adjusted fiscal note when
    3-2  enrolled.
    3-3        SECTION 5.  RULES OF TEXAS NATURAL RESOURCE CONSERVATION
    3-4  COMMISSION.  (a)  A state agency rule that contains an
    3-5  environmental mandate may not be adopted by the Texas Natural
    3-6  Resource Conservation Commission or its successor unless it is
    3-7  accompanied, at the time it is proposed, by a fiscal note that
    3-8  informs the public, local governments, and the legislative and
    3-9  executive branches of state government of the probable cost of the
   3-10  environmental mandate on local governments.  An agency may offer an
   3-11  opinion concerning the benefit of the mandate.
   3-12        (b)  The fiscal note shall be prepared in the manner
   3-13  described by Section 3 of this Act.
   3-14        (c)  The fiscal note shall be prepared by the Texas Natural
   3-15  Resource Conservation Commission or its successor and shall be
   3-16  published in the Texas Register with the proposed rule.  If
   3-17  adopted, the rule shall be accompanied by an adjusted fiscal note
   3-18  when the notice of adoption is published in the Texas Register.
   3-19        (d)  A rule that imposes an environmental mandate on local
   3-20  governments may not be adopted by the Texas Natural Resource
   3-21  Conservation Commission or its successor on an emergency basis.
   3-22  This subsection does not prevent or inhibit the commission's
   3-23  ability to issue an emergency order or rule necessary in the
   3-24  judgment of the commission to prevent loss of life, serious injury,
   3-25  severe property damage, or severe economic loss.
    4-1        SECTION 6.  DELAYED IMPLEMENTATION DATES.  The legislature
    4-2  and the Texas Natural Resource Conservation Commission shall
    4-3  consider the effect of any proposed environmental mandate on the
    4-4  annual budget requirements and restrictions of local governments.
    4-5  To allow local governments to plan and prepare adequate annual
    4-6  budgets, an environmental mandate enacted by the legislature in
    4-7  compliance with this subchapter may not become effective for local
    4-8  governments before one year after the date the legislature adjourns
    4-9  sine die at the regular or special session in which the mandate is
   4-10  enacted.  A rule of the Texas Natural Resource Conservation
   4-11  Commission containing an environmental mandate may not become
   4-12  effective for local governments before six months after the date
   4-13  the state agency rule is adopted.
   4-14        SECTION 7.  The importance of this legislation and the
   4-15  crowded condition of the calendars in both houses create an
   4-16  emergency and an imperative public necessity that the
   4-17  constitutional rule requiring bills to be read on three several
   4-18  days in each house be suspended, and this rule is hereby suspended,
   4-19  and that this Act take effect and be in force from and after its
   4-20  passage, and it is so enacted.