BILL ANALYSIS


                                                     C.S.S.B. 978
                                                         By: Sims
                                                Natural Resources
                                                         04-18-95
                                   Committee Report (Substituted)
BACKGROUND

There has been concern that agencies may be exceeding the specific
statutory authorization of the legislature and federal law when
adopting rules governing state programs and programs for which the
state is seeking federal delegation. It may not be appropriate to
remove flexibility for agencies to deal with problems unique to
Texas or for which federal standards are inadequate. However, it
may be appropriate for the legislature to require that agencies
examine relative costs and disclose those costs when adopting
regulations.

PURPOSE

As proposed, C.S.S.B. 978 provides for cost-benefit analysis of
major environmental rules proposed for adoption by a state agency.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to a state agency under SECTION 1 (Section 2001.0225(d), Government
Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2001B, Government Code, by adding Section
2001.0225, as follows:

     Sec. 2001.0225. COST-BENEFIT ANALYSIS OF MAJOR ENVIRONMENTAL
     RULES.  (a) Provides that this section applies only to a rule
     adopted by specific state agencies with certain intended
     results.
     
     (b) Sets forth required considerations for a state agency
       covered by this section, before adopting a major
       environmental rule.
     (c) Requires a state agency to incorporate into the fiscal
       note required by Section 2001.024 a draft impact statement
       when giving notice of a major environmental rule.  Sets
       forth information required to be included in the draft
       impact statement.
       
       (d) Requires a state agency order finally adopting a rule to
       revise the draft impact statement into a final cost-benefit
       analysis that incorporates comments received or state the
       reasons the agency disagrees with each submission or
       comments.
       
       (e) Provides that a rule does not take effect unless the
       draft impact statement and the final cost benefit analysis
       are prepared according to this section.
       
       (f) Sets forth the intent of the legislature regarding the
       adoption of rules by state agencies.
       
       (g) Defines "cost," "major environmental rule," and "net
       benefits."
       
       SECTION 2.   Effective date: September 1, 1995.
           Makes application of this Act prospective.

SECTION 3. Emergency clause.