BILL ANALYSIS



C.S.H.B. 723
By: Turner
5-5-95
Committee Report (Substituted)


BACKGROUND

After the Legislature passes a law giving a state agency rule-making authority, the implementation of that legislation is left
entirely up to the governing state agency. The potential is present
for a state agency to not follow the original legislative intent.
New agency rules can conflict with existing law or the directives
set by the legislature.  

PURPOSE

H.B. 723 requires that before adoption of an agency rule, the
legislative committee with oversight of that agency must hold a
public hearing on the agency rule.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.   Adding Section 2001.0321 INDEPENDENT REVIEW OF RULES;
SUSPENSION OF RULE BY GOVERNOR:

     a) The Chair of any standing committee of either house may
     petition the presiding officer of either house to initiate a
     independent review by the appropriate committee of a rule
     proposed or adopted by a state agency.  The presiding officer
     must notify the chair whether the petition will be reviewed
     within 10 days.

     (b) The standing committee may review any proposed or adopted
     rule referred to it, as long as the rule has not be in effect
     for more than 180 days at the time of the petition.  The
     committee may hold a public hearing or a meeting on the rule. 
     Provides points to consider when reviewing.

     (c) A committee may vote to recommend to the presiding officer
     that the presiding officer request the governor to suspend the
     rule or proposed rule.

     (d) The committee may meet by telephone conference call to
     consider a rule or proposed rule under this section.  Sets
     meeting notice specifications for such a meeting.

     (e) Instead of holding a meeting, the chair of the committee
     may notify the members of the referred rule and sent a ballot
     to the members.  The chair shall give each member an
     opportunity to vote or participate in the balloting by mail or
     fax.

     (f) If the committee recommends that the presiding officer
     requests the governor to suspend the rule, the chair shall
     give written notice to the presiding officer of the
     appropriate house and the state agency that adopted or
     proposed the rule within ten days.

     (g) If a committee recommends that the presiding officer
     requests the governor to suspend the rule, the chair shall
     give written notice to every member of the legislature within
     10 days.  No later than 10 days after the date of the
     committee action, a member of the appropriate house may file
     a written statement of support or objection with the committee
     action.

     (h) No later than 10 days after the presiding officer receives
     notice that a committee has recommended that the presiding
     officer request the governor to suspend a rule, the presiding
     officer may do so.  The presiding officer shall consider any
     objections or statements of support filed by members.  If the
     presiding officer sends a request to the governor, the officer
     must send a copy of the request to the governor, the state
     agency that adopted or proposed the rule, the secretary of
     state, and the other presiding officer.

     (i) Upon receiving a request from the presiding office of
     either house, the governor may suspend a rule, except for an
     emergency rule.  The governor shall consider the items listed
     in (b) and shall state the grounds for suspension of the rule
     and when the suspension takes effect.  The suspension may not
     take effect within 30 days of the suspension.  Within 5 days
     of the suspension, the governor shall deliver a certified copy
     of the suspension proclamation to the to the affected state
     agency, and file notice of proclamation with the secretary of
     state for publication in the Texas Register.

     (j) When a rule is suspended under this section, the state
     agency may not adopt or propose a rule containing the
     substance of the suspended rule for at least 2 years, unless
     the governor consents by proclamation.

SECTION 2.  Amends Subchapter B, Chapter 2001, Government Code, by
adding Section      2001.0322, AGENCY RULES REVIEW ADVISORY
                    COMMITTEE.  Establishes the agency rules
                    review advisory committee which is composed of
                    the following members or their designees: the
                    governor; the lieutenant governor, the
                    Speaker; the executive director of the Sunset
                    Commission, and the executive director of
                    Legislative Council.  The committee shall
                    consider possible approaches to legislative
                    review of state agency rules and shall provide
                    a report to the Legislature by November 1,
                    1996.  The committee shall use existing staff
                    and no appropriation shall be made for the
                    work of the committee.  This section expires
                    August 31, 1997.

SECTION 3.  Repeals Section 2001.032, Government Code.

SECTION 4.  Emergency clause.  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill required all proposed agency rules to be referred
to the appropriate standing committees of the Legislature, and gave
the committees the authority to recommend that the governor suspend
the proposed rule.  The substitute would allow the chair of any
standing committee to petition the presiding officer to initiate an
independent review by referring an adopted or proposed rule to the
appropriate standing committee.  The committee could than recommend
to the presiding office that a rule be suspended, and the presiding
officer could recommend to the governor that a rule be suspended. 

The substitute also establishes the agency rules review advisory
committee which shall study approaches to legislative review of
state agency rules and report to the Legislature.

SUMMARY OF COMMITTEE ACTION

Pursuant to posting of public notice on February 22, 1995, the
House Committee on State Affairs convened in a public hearing on
February 27, 1995 to consider HB 723.  The Chair laid out HB 723
and recognized Rep. B. Turner and Rep. Yost to explain the bill. 
The following persons testified for the bill:  Durwald Tucker
representing the Texas Farm Bureau; and Ellis Gilleland
representing himself.  The following persons testified against the
bill:  Reggie James representing Consumers Union; Tom Smith
representing Public Citizen; and Ruth Milburn representing Common
Cause.  The Chair recognized Rep. B. Turner to close on HB 723. 
The Chair referred HB 723 to a subcommittee consisting of the
following members: Rep. S. Turner, Chair; Rep. D. Jones; Rep.
Ramsay; Rep. Black, and Rep. Hochberg.  HB 723 was considered by
the committee in a formal meeting on March 23, 1995.  The Chair
laid out HB 723.  HB 723 was left pending.  After being recalled
from subcommittee, the bill was considered by the committee in a
formal meeting on April 27, 1995.  The Chair laid out HB 723.  The
committee considered a complete substitute for the bill.  The
complete committee substitute was adopted without objection.  The
bill was reported favorably as substituted with the recommendation
that it do pass and be printed by a record vote of 14 ayes, 1 nay,
0 pnv, 0 absent.