By Yost H.B. No. 857
74R4260 MI-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the cost-benefit analysis of an environmental rule or
1-3 regulation proposed by a state agency or the legislature.
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 2001.0225 to read as follows:
1-7 Sec. 2001.0225. COST-BENEFIT ANALYSIS OF ENVIRONMENTAL
1-8 RULES. (a) Before adopting an environmental rule, a state agency
1-9 shall consider:
1-10 (1) the economic impact the proposed rule will have
1-11 on, and the environmental benefit the proposed rule will provide
1-12 for, residents of this state; and
1-13 (2) the fiscal impact of the proposed rule on state
1-14 and local governmental agencies.
1-15 (b) Before giving notice of a proposed environmental rule as
1-16 required by Sections 2001.023 and 2001.024, a state agency shall
1-17 develop a written economic and fiscal impact statement that,
1-18 specifically and in detail:
1-19 (1) describes the need for, and the environmental
1-20 benefits likely to accrue from adoption of, the proposed rule;
1-21 (2) estimates the capital cost and the annual cost to
1-22 the regulated community of implementing the proposed rule;
1-23 (3) estimates the costs to the entire ecosystem
1-24 resulting from implementation of the proposed rule;
2-1 (4) estimates the initial cost and annual cost to the
2-2 agency adopting the rule and to other state and local governmental
2-3 agencies of implementing and enforcing the proposed rule, including
2-4 estimated costs of necessary paperwork and staff requirements;
2-5 (5) estimates the opportunity costs, including lost
2-6 job-producing industry, affordable housing, and tax revenues for
2-7 public schools;
2-8 (6) describes, where applicable, reasonable
2-9 alternative methods for achieving the purpose of the rule that were
2-10 considered by the agency and states reasons for rejecting those
2-11 alternatives in favor of the proposed rule or substantive
2-12 modification; and
2-13 (7) identifies the data and methodology used in making
2-14 estimates required by this section.
2-15 (c) The written report required by this section shall be
2-16 incorporated into the fiscal note required by Section 2001.024.
2-17 (d) This section does not apply to the adoption of an
2-18 environmental rule that is:
2-19 (1) proposed and adopted under a delegation agreement
2-20 or contract between the state and an agency or representative of
2-21 the federal government for the implementation of a new state and
2-22 federal program, if the rule does not impose a requirement more
2-23 stringent than federal requirements; or
2-24 (2) expressly required by state law.
2-25 (e) In this section, "environmental rule" means an agency
2-26 rule the specific intent of which is to regulate an activity to
2-27 protect the environment or reduce risks to human health from
3-1 environmental exposure.
3-2 SECTION 2. Subtitle B, Title 3, Government Code, is amended
3-3 by adding Chapter 320 to read as follows:
3-4 CHAPTER 320. COST-BENEFIT ANALYSIS OF
3-5 PROPOSED ENVIRONMENTAL REGULATION
3-6 Sec. 320.001. COST-BENEFIT ANALYSIS OF PROPOSED
3-7 ENVIRONMENTAL REGULATION. (a) If the chair of a standing
3-8 committee determines that a bill or resolution referred to the
3-9 committee proposes a new environmental regulation, the chair shall
3-10 send a copy of the bill or resolution to the director of the
3-11 Legislative Budget Board for the preparation of a cost-benefit
3-12 analysis as described by Subsection (e). The cost-benefit analysis
3-13 is in addition to any fiscal note required and must be attached to
3-14 the bill before the bill may be heard in committee on first
3-15 printing.
3-16 (b) For purposes of this section, a bill proposes a new
3-17 environmental regulation if it authorizes or requires the
3-18 restriction of an activity for the specific purpose of protecting
3-19 the environment or reducing risks to human health from
3-20 environmental exposure.
3-21 (c) The Legislative Budget Board shall send a copy of the
3-22 cost-benefit analysis to the committee that requested it and to the
3-23 author or sponsor of the bill or resolution.
3-24 (d) In preparing a cost-benefit analysis, the director of
3-25 the Legislative Budget Board may use information or data supplied
3-26 by any person that the director considers reliable and shall state
3-27 the source or sources of the information or data used and may state
4-1 the extent to which the director relied on the information or data
4-2 in preparing the cost-benefit analysis.
4-3 (e) The cost-benefit analysis shall specifically and in
4-4 detail:
4-5 (1) describe the need for, and the environmental
4-6 benefits likely to accrue from enactment of, the proposed
4-7 regulation;
4-8 (2) estimate the capital cost and the annual cost to
4-9 the regulated community of implementing the proposed regulation;
4-10 (3) estimate the costs to the environment resulting
4-11 from implementation of the proposed regulation;
4-12 (4) estimate the initial cost and annual cost to state
4-13 and local governmental agencies of implementing and enforcing the
4-14 proposed regulation, including estimated costs of necessary
4-15 paperwork and staff requirements;
4-16 (5) estimate the opportunity costs, including lost
4-17 job-producing industry, affordable housing, and tax revenues for
4-18 public schools; and
4-19 (6) identify the data and methodology used in making
4-20 estimates required by this section.
4-21 (f) If the bill or resolution is amended by the committee so
4-22 as to alter the cost-benefit implications, the chair shall obtain
4-23 an updated cost-benefit analysis, which must be attached to the
4-24 bill or resolution as part of the committee report.
4-25 (g) All cost-benefit analyses must remain with the bill or
4-26 resolution throughout the entire legislative process, including
4-27 submission to the governor.
5-1 SECTION 3. This Act takes effect September 1, 1995, and
5-2 applies only to an environmental rule or regulation proposed by a
5-3 state agency or the legislature on or after that date.
5-4 SECTION 4. The importance of this legislation and the
5-5 crowded condition of the calendars in both houses create an
5-6 emergency and an imperative public necessity that the
5-7 constitutional rule requiring bills to be read on three several
5-8 days in each house be suspended, and this rule is hereby suspended.