By Turner of Coleman, Rabuck, Saunders,                H.B. No. 723
             Jones of Lubbock, Swinford
          Substitute the following for H.B. No. 723:
          By Turner of Harris                                C.S.H.B. No. 723
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to legislative review and gubernatorial suspension of
    1-3  certain rules of state agencies.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter B, Chapter 2001, Government Code, is
    1-6  amended by adding Section 2001.0321 to read as follows;
    1-7        Sec. 2001.0321.  INDEPENDENT REVIEW OF RULES: SUSPENSION OF
    1-8  RULE BY GOVERNOR.  (a)  The chair of any standing committee of
    1-9  either house may petition the presiding officer of that house to
   1-10  initiate an independent review by the appropriate standing
   1-11  committee of that house of a rule proposed or adopted by a state
   1-12  agency.  Within ten days after receiving the petition, the
   1-13  presiding officer shall notify the petitioning chair as to whether
   1-14  the review will be conducted.
   1-15        (b)  A standing committee may review any proposed or adopted
   1-16  rule referred to it, provided that the rule has not been in effect
   1-17  more than 180 days at the time of the submission of the petition
   1-18  which requests the review.  The committee may hold a public hearing
   1-19  or a meeting on the rule or proposed rule.  In reviewing a rule or
   1-20  proposed rule, the committee shall consider:
   1-21              (1)  whether the rule is authorized by law and is
   1-22  consistent with the intent and scope of the authorizing law; and
   1-23              (2)  whether the rule complies with all other
   1-24  applicable law; and
    2-1              (3)  whether the rule can be justified when compared to
    2-2  available alternatives that would satisfy the legislative intent of
    2-3  the authorizing law and requirements of other applicable law on the
    2-4  basis of:
    2-5                    (A)  cost to the state and to persons affected by
    2-6  the rule; and
    2-7                    (B)  the burdensomeness of the rule to the public
    2-8  or to persons affected by the rule.
    2-9        (c)  A committee by majority vote of the membership of the
   2-10  committee may recommend to the presiding officer of the appropriate
   2-11  house that the presiding officer request the governor to suspend
   2-12  the rule or proposed rule.
   2-13        (d)  The committee may meet by telephone conference call to
   2-14  consider a rule or proposed rule under this section.  The notice of
   2-15  the meeting must specify as the location of the meeting at least
   2-16  one location at which facilities must be provided to make the
   2-17  meeting audible to the public.  The meeting shall be tape-recorded
   2-18  and the tape recordings shall be made available to the public.
   2-19        (e)  As an alternative to holding a meeting on the question,
   2-20  the chairman of the committee may notify the members of the
   2-21  committee that a rule or proposed rule has been referred to the
   2-22  committee and provide each member with a ballot to permit voting
   2-23  for, voting against, or participating and not voting on whether the
   2-24  committee shall recommend that the presiding officer request the
   2-25  governor to suspend the rule or proposed rule.  The chairman shall
   2-26  give each member an opportunity to vote or participate by mail or
   2-27  by facsimile transmission of a marked ballot.
    3-1        (f)  If the committee recommends that the presiding officer
    3-2  request the governor to suspend the rule or proposed rule, the
    3-3  chairman, not later than the 10th day after the date the
    3-4  recommendation is made, shall give written notice of its
    3-5  recommendation to:
    3-6                    (1)  the presiding officer of the appropriate
    3-7  house; and
    3-8                    (2)  the state agency that adopted or proposed
    3-9  the rule.
   3-10        (g)  If a committee recommends that the presiding officer
   3-11  request the governor to suspend a rule or proposed rule, the
   3-12  chairman of the committee shall give written notice of the
   3-13  committee recommendation to each member of the house of the
   3-14  legislature of which the committee is a part not later than the
   3-15  10th day after the action is taken.  Not later than the 10th day
   3-16  after the date of the committee action, a member of that house may
   3-17  file a written objection to or statement of support for the
   3-18  committee's action with the presiding officer of that house.
   3-19        (h)  Not later than the 10th day after the date the presiding
   3-20  officer receives notice that a committee has recommended that the
   3-21  presiding officer request the governor to suspend a rule or
   3-22  proposed rule, the presiding officer may request the governor to do
   3-23  so.  In making a decision under this subsection, the presiding
   3-24  officer shall consider any objections or statements of support
   3-25  filed by members of the house under Subsection (g).  If the
   3-26  presiding officer requests the governor to suspend the rule or
   3-27  proposed rule, the presiding officer shall give written notice of
    4-1  the request to:
    4-2              (1)  the governor;
    4-3              (2)  the state agency that adopted or proposed the
    4-4  rule;
    4-5              (3)  the secretary of state; and
    4-6              (4)  the presiding officer of the other house of the
    4-7  legislature.
    4-8        (i)  The governor, on the request of the presiding officer of
    4-9  either house of the legislature under this section by proclamation
   4-10  may suspend a rule, other than an emergency rule, adopted or
   4-11  proposed by a state agency.  The governor shall consider the items
   4-12  listed in Subsection (b) and shall state in the proclamation the
   4-13  grounds for suspension of the rule or proposed rule.  The governor
   4-14  must state in the proclamation the date on which the suspension
   4-15  takes effect.  The effective date may not be earlier than the 30th
   4-16  day after the date of the proclamation.  Not later than the fifth
   4-17  day after the date of the proclamation, the governor shall:
   4-18              (1)  deliver a certified copy of the proclamation to
   4-19  the state agency that adopted or proposed the rule; and
   4-20              (2)  file notice of the proclamation with the secretary
   4-21  of state for publication in the Texas Register.
   4-22        (j)  When a rule or proposed rule is suspended under this
   4-23  section, the state agency that adopted or proposed the rule may not
   4-24  adopt a rule containing the substance of the suspended rule, before
   4-25  the second anniversary of the date the suspension takes effect,
   4-26  unless the governor by proclamation consents to adoption of the
   4-27  rule.  On or after the third anniversary, the state agency may
    5-1  adopt the same rule or a rule containing the substance of the
    5-2  suspended rule as provided by this subchapter.
    5-3        SECTION 2.  Subchapter B, Chapter 2001, Government Code, is
    5-4  amended by adding Section 2001.0322 to read as follows:
    5-5        Sec. 2001.032.  AGENCY RULES REVIEW ADVISORY COMMITTEE.  (a)
    5-6  The Agency Rules Review Committee is established.
    5-7        (b)  The committee is composed of the following members or
    5-8  their designees:
    5-9              (1)  the governor;
   5-10              (2)  the lieutenant governor;
   5-11              (3)  the speaker of the House of Representatives;
   5-12              (4)  the executive director of the Sunset Commission;
   5-13              (5)  the executive director of the Legislative Council.
   5-14        (c)  The committee shall consider possible approaches to
   5-15  legislative review of rules promulgated by state agencies, and
   5-16  provide a recommendation for action in a report to the legislature
   5-17  not later than November 1, 1996.
   5-18        (d)  The staff of the members of the committee shall serve as
   5-19  staff for the committee, and their shall be no appropriation for
   5-20  the work of the committee.
   5-21        (e)  This section shall expire August 31, 1997 unless renewed
   5-22  by legislation prior to that date.
   5-23        SECTION 3.  Section 2001.032, Government Code, is repealed.
   5-24        SECTION 4.  The importance of this legislation and the
   5-25  crowded condition of the calendars in both houses create an
   5-26  emergency and an imperative public necessity that the
   5-27  constitutional rule requiring bills to be read on three several
    6-1  days in each house be suspended, and this rule is hereby suspended,
    6-2  and that this Act take effect and be in force from and after its
    6-3  passage, and it is so enacted.