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.