By Rabuck                                             H.B. No. 1460
       74R4479 MJW-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to establishment of the office of administrative rule
    1-3  review within the office of the governor.
    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.  FILING PROPOSED RULE FOR REVIEW BY
    1-8  GOVERNOR'S OFFICE.  A state agency shall file, on the same day that
    1-9  it files notice with the secretary of state as required by Section
   1-10  2001.023, a copy of each proposed rule other than an emergency rule
   1-11  with the office of administrative rule review under Chapter 774.
   1-12        SECTION 2.  Title 7, Government Code, is amended by adding
   1-13  Chapter 774 to read as follows:
   1-14          CHAPTER 774.  OFFICE OF ADMINISTRATIVE RULE REVIEW
   1-15        Sec. 774.001.  DEFINITIONS.  In this chapter:
   1-16              (1)  "Office" means the office of administrative rule
   1-17  review.
   1-18              (2)  "Rule" has the meaning assigned by Section
   1-19  2001.003.
   1-20              (3)  "State agency" has the meaning assigned by Section
   1-21  2001.003.
   1-22        Sec. 774.002.  OFFICE ESTABLISHED.  The office of
   1-23  administrative rule review is a division of the office of the
   1-24  governor.
    2-1        Sec. 774.003.  RULE REVIEW.  The office may review:
    2-2              (1)  any proposed rule referred to it under Section
    2-3  2001.0321; and
    2-4              (2)  a rule that has been adopted by a state agency and
    2-5  is in effect.
    2-6        Sec. 774.004.  PUBLIC HEARING.  The office may hold a public
    2-7  hearing or meeting on a rule or proposed rule under review.
    2-8        Sec. 774.005.  STANDARD OF REVIEW.  In reviewing a rule or
    2-9  proposed rule, the office shall consider:
   2-10              (1)  whether the rule is authorized by law and is
   2-11  consistent with the intent and scope of the authorizing law;
   2-12              (2)  whether the rule complies with all other
   2-13  applicable law; and
   2-14              (3)  whether the rule is reasonable considering
   2-15  available alternatives that:
   2-16                    (A)  may be more efficient and economical; or
   2-17                    (B)  are less burdensome to the public or to
   2-18  persons affected by the rule.
   2-19        Sec. 774.006.  RECOMMENDATION;  NOTICE.  (a)  After review,
   2-20  the office may recommend that the governor suspend a rule or
   2-21  proposed rule.
   2-22        (b)  If the office recommends suspension of a rule or
   2-23  proposed rule, it shall, not later than the 10th day after the date
   2-24  the recommendation is made, give written notice of the
   2-25  recommendation to the:
   2-26              (1)  state agency that adopted or proposed the rule;
   2-27  and
    3-1              (2)  secretary of state.
    3-2        Sec. 774.007.  PUBLICATION OF RECOMMENDATION;  NOTIFICATION
    3-3  OF INTERESTED PERSONS.  (a)  The secretary of state shall publish
    3-4  notice of the office's recommendation in the Texas Register as soon
    3-5  as practicable after receiving the notice under Section 774.006.
    3-6        (b)  The state agency shall notify any appropriate persons on
    3-7  its mailing lists of the recommendation.
    3-8        Sec. 774.008.  GOVERNOR'S SUSPENSION OF RULE.  (a)  The
    3-9  governor, on the recommendation of the office or on the governor's
   3-10  own action, by proclamation may suspend a rule, other than an
   3-11  emergency rule, adopted or proposed by a state agency.
   3-12        (b)  The governor shall consider the items listed by Section
   3-13  774.005 and shall state in the proclamation the grounds for
   3-14  suspension of the rule.  The governor must state in the
   3-15  proclamation the date on which the suspension takes effect.  The
   3-16  effective date of the suspension may not be earlier than the 30th
   3-17  day after the date of the proclamation. 
   3-18        (c)  Not later than the fifth day after the date of the
   3-19  proclamation, the governor shall:
   3-20              (1)  deliver a certified copy of the proclamation to
   3-21  the state agency that adopted or proposed the rule; and
   3-22              (2)  file notice of the proclamation with the secretary
   3-23  of state for publication in the Texas Register and the Texas
   3-24  Administrative Code.
   3-25        Sec. 774.009.  STAY ON ADOPTION OF SUSPENDED RULE.  (a)  When
   3-26  a rule or proposed rule is suspended under this chapter, the state
   3-27  agency that adopted or proposed the rule may not adopt a rule
    4-1  containing the substance of the suspended rule before the third
    4-2  anniversary of the date the suspension takes effect, unless the
    4-3  governor by proclamation consents to adoption of the rule.
    4-4        (b)  On or after the third anniversary of suspension of a
    4-5  rule or proposed rule, a state agency may adopt the same rule or a
    4-6  rule containing the substance of the suspended rule as provided by
    4-7  Subchapter B, Chapter 2001.
    4-8        Sec. 774.010.  EFFECT OF SUSPENSION ON PRIOR ACTION.   The
    4-9  suspension of a rule under this chapter does not affect the
   4-10  validity of an action taken in connection with the rule when the
   4-11  rule was in effect.
   4-12        SECTION 3.  Section 2001.032, Government Code, is repealed.
   4-13        SECTION 4.  The importance of this legislation and the
   4-14  crowded condition of the calendars in both houses create an
   4-15  emergency and an imperative public necessity that the
   4-16  constitutional rule requiring bills to be read on three several
   4-17  days in each house be suspended, and this rule is hereby suspended,
   4-18  and that this Act take effect and be in force from and after its
   4-19  passage, and it is so enacted.