By Yost                                               H.B. No. 2144
       74R5650 JJT-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the implementation of federal environmental mandates
    1-3  and the protection of state sovereignty.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Title 7, Government Code, is amended by adding
    1-6  Chapter 792 to read as follows:
    1-7                  CHAPTER 792.  FEDERAL MANDATES ACT
    1-8        Sec. 792.001.  SHORT TITLE.  This chapter may be cited as the
    1-9  Federal Mandates Act.
   1-10        Sec. 792.002.  FINDINGS AND PURPOSE.  (a)  The legislature
   1-11  finds that the people of the state, through elected state
   1-12  government officials, have primary responsibility and authority to
   1-13  implement in and for the state the federal environmental policy
   1-14  embodied in federal statutes.
   1-15        (b)  The legislature does not intend to challenge the
   1-16  authority of the United States Congress to establish national
   1-17  environmental policy or to challenge the jurisdiction of the
   1-18  federal judiciary.  The legislature intends to assure the primacy
   1-19  of the state's legal and political authority to implement in and
   1-20  for the state the environmental policy embodied in federal
   1-21  environmental statutes and to challenge the extent and scope of
   1-22  authority asserted by federal executive branch agencies when
   1-23  federal agency actions or interpretations of law are inconsistent
   1-24  with the state's environmental policy, exceed the lawful authority
    2-1  of the federal government, or are not required by federal law.
    2-2        (c)  The legislature finds that:
    2-3              (1)  the power to implement federal environmental
    2-4  policies in and for the state is central to the ability of the
    2-5  people of the state to govern themselves under a federal system of
    2-6  government; and
    2-7              (2)  the implementation of a federal environmental
    2-8  policy in and for the state by a federal executive branch agency in
    2-9  a manner contrary to fundamental tenets of federalism and
   2-10  self-determination must be identified and countered.
   2-11        (d)  The legislature finds and declares that:
   2-12              (1)  there is an urgent need to modify the laws and
   2-13  policies regarding federal environmental mandates because the
   2-14  current legal structure governing the implementation of these
   2-15  mandates by the state:
   2-16                    (A)  wastes the state's financial resources;
   2-17                    (B)  does not properly respect the rights of the
   2-18  state; and
   2-19                    (C)  does not provide the best method for
   2-20  protecting the environment in the state; and
   2-21              (2)  state government has an obligation to the public
   2-22  to do what is necessary to protect the environment under federal
   2-23  law without:
   2-24                    (A)  incurring any unnecessary cost; and
   2-25                    (B)  placing any unnecessary burden on any state
   2-26  citizen.
   2-27        (e)  The Tenth Amendment to the United States Constitution
    3-1  provides that powers that are not delegated to the United States by
    3-2  the constitution are reserved to the states or to the people.  In
    3-3  the context of preserving and protecting the environment of the
    3-4  state, the reservation of power in the states means that any aspect
    3-5  of environmental policy that has not been clearly established by
    3-6  the United States government by federal statute has been left to
    3-7  the states to implement.
    3-8        (f)  Certain federal regulatory mandates, as reflected in
    3-9  federal administrative regulations, guidelines, and policies, do
   3-10  not reflect the realities of the geographical and ecological
   3-11  diversity of the state.  Federal regulators frequently do not
   3-12  understand the needs and priorities of the state's citizens
   3-13  regarding environmental policies.
   3-14        (g)  The state's citizens can create and wish to create
   3-15  innovative solutions to environmental problems, but the manner in
   3-16  which legal challenges to state policies and federal programmatic
   3-17  substitutions of state programs are handled does not allow the
   3-18  state the flexibility required to foster innovation.  It is not
   3-19  possible for the state to effectively and efficiently implement the
   3-20  provisions of federal environmental statutes unless the burden to
   3-21  prove the insufficiency of the state's efforts to implement federal
   3-22  requirements is shifted to the person or agency who challenges the
   3-23  sufficiency of the efforts.
   3-24        (h)  This chapter will better balance the exercise of the
   3-25  powers of the federal government and the powers reserved to the
   3-26  states.  The application of this chapter ultimately will bring
   3-27  about greater environmental protection for the state and the United
    4-1  States, because the chapter will:
    4-2              (1)  allow the state to guard the environment and
    4-3  implement federal environmental statutes at the least possible
    4-4  cost, thereby freeing resources for other needs; and
    4-5              (2)  provide the federal government with vital
    4-6  information regarding the best methods of protecting the
    4-7  environment under the specific conditions present in the state.
    4-8        Sec. 792.003.  DEFINITIONS.  In this chapter, "federal
    4-9  environmental statute" means a federal statute regarding
   4-10  environmental health and quality, including:
   4-11              (1)  the federal Safe Drinking Water Act (42 U.S.C.
   4-12  Section 300f et seq.);
   4-13              (2)  the federal Clean Air Act (42 U.S.C. Section 7401
   4-14  et seq.);
   4-15              (3)  the Federal Water Pollution Control Act (33 U.S.C.
   4-16  Section 1251 et seq.);
   4-17              (4)  the federal Solid Waste Disposal Act, as amended
   4-18  by the federal Resource Conservation and Recovery Act of 1976 (42
   4-19  U.S.C. Section 6901 et seq.);
   4-20              (5)  the federal Comprehensive Environmental Response,
   4-21  Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et
   4-22  seq.);
   4-23              (6)  the federal Superfund Amendments and
   4-24  Reauthorization Act of 1986 (Pub.L. No. 99-499); and
   4-25              (7)  the federal Endangered Species Act of 1973 (16
   4-26  U.S.C. Section 1531 et seq.).
   4-27        Sec. 792.004.  STATE PROGRAMS TO IMPLEMENT FEDERAL
    5-1  ENVIRONMENTAL STATUTES.  (a)  A state officer, official, or
    5-2  employee charged with implementing any federal environmental
    5-3  statute shall implement the law as required by the federal statute
    5-4  in good faith.  The officer, official, or employee shall review any
    5-5  related federal regulation, guideline, or policy in order to
    5-6  identify provisions of the regulation, guideline, or policy that:
    5-7              (1)  are inconsistent with state environmental policy;
    5-8  or
    5-9              (2)  do not advance state environmental policy in a
   5-10  cost-effective manner.
   5-11        (b)  An executive state agency that is authorized to develop
   5-12  a state program to respond to a mandate contained in a federal
   5-13  environmental statute shall develop the state program and adopt any
   5-14  necessary rules in accordance with this section.  A state program
   5-15  shall:
   5-16              (1)  be developed by the agency to meet the
   5-17  requirements of federal environmental statutes in good faith with a
   5-18  view toward discerning those federal regulations, guidelines, or
   5-19  policies that may be inconsistent with state environmental policy
   5-20  or that are not cost-effective;
   5-21              (2)  be developed with consideration of the financial
   5-22  restraints of the state, including the limitations imposed by
   5-23  Section 49, Article III, Texas Constitution; and
   5-24              (3)  protect the environment using the most efficient
   5-25  method practicable, with careful consideration given to the cost of
   5-26  the program and the impact of the program on the state's citizens
   5-27  and local governments.
    6-1        (c)  A state agency charged with implementing a federal
    6-2  environmental statute shall provide a report to the Legislative
    6-3  Budget Office regarding its rules adopted in response to a federal
    6-4  mandate and its findings under this section as a part of the
    6-5  agency's biennial appropriation request.
    6-6        Sec. 792.005.  BUDGETARY SAVINGS.  (a)  The Legislative
    6-7  Budget Board shall:
    6-8              (1)  oversee the implementation of this chapter; and
    6-9              (2)  oversee the Legislative Budget Office's operations
   6-10  under Subsections (b), (c), and (d).
   6-11        (b)  All state funding for a state program that is mandated
   6-12  by a federal environmental statute is dependent upon proof that the
   6-13  program is necessary to protect the environment and public health
   6-14  or is necessary to implement the federal environmental statute.
   6-15  The Legislative Budget Office shall recommend to the legislature
   6-16  whether a state program is necessary and exercise a discerning view
   6-17  toward the interpretation of the federal environmental statute
   6-18  found in federal regulations, guidelines, or policies.  Proof that
   6-19  a state program is required by regulations, guidelines, or policies
   6-20  of a federal agency does not constitute proof that a state
   6-21  regulation or policy is necessary to protect the environment and
   6-22  public health or is required by a federal environmental statute.
   6-23        (c)  Before the Legislative Budget Office recommends a budget
   6-24  for a state agency that is charged with implementing federal
   6-25  environmental mandates, the Legislative Budget Office shall require
   6-26  the state agency to provide to the Legislative Budget Office:
   6-27              (1)  information regarding any monetary savings for the
    7-1  state and any reduction in regulatory burdens on the public or
    7-2  local governments that could be or have been achieved through the
    7-3  development of state environmental policies that meet the intent of
    7-4  the federal environmental statute but do not comply with all
    7-5  applicable federal regulations, guidelines, or policies; and
    7-6              (2)  advice regarding changes in state statutes that
    7-7  are necessary to provide the state agency the authority to
    7-8  implement state environmental policies in such a manner so as to
    7-9  create additional monetary savings or greater reductions in
   7-10  regulatory burdens.
   7-11        (d)  With the assistance of the attorney general, the
   7-12  Legislative Budget Office shall study all federally mandated
   7-13  programs and other federally mandated demands to determine the cost
   7-14  to state government of the mandates and the cost of compliance with
   7-15  the mandates for individuals and businesses in the state.  The
   7-16  Legislative Budget Office shall prepare a report for members of the
   7-17  legislature, the governor, and the lieutenant governor that
   7-18  provides the costs of the federally mandated programs and other
   7-19  federally mandated demands and also provides the possible federal
   7-20  funding that the state receives that might be withdrawn or
   7-21  discontinued if the mandate is not implemented or, if the mandate
   7-22  is already implemented, if the state statutes or rules implementing
   7-23  the mandate or demand are repealed.
   7-24        Sec. 792.006.  INVESTIGATION OF METHODS TO FULLY EXERCISE
   7-25  STATE AUTHORITY.  (a)  The attorney general shall investigate
   7-26  methods by which the state may use the state and federal judicial
   7-27  systems to gain authority to flexibly implement federal mandates
    8-1  under the state and federal judicial systems.  The attorney general
    8-2  shall recommend to the Constitutional Defense Council, the
    8-3  governor, and the legislature any action that the state should take
    8-4  regarding federal mandates, including legal challenges to federal
    8-5  mandates imposed by the United States Congress.
    8-6        (b)  The attorney general shall consider including
    8-7  recommendations for changes to federal law that the legislature may
    8-8  request the United States Congress to make.
    8-9        Sec. 792.007.  STUDY REGARDING FEDERAL MANDATES REPORT.  (a)
   8-10  The attorney general shall study federal mandates that are imposed
   8-11  on the state and identify those mandates that:
   8-12              (1)  are inconsistent with state policy;
   8-13              (2)  go beyond the requirements of state law;
   8-14              (3)  cause adoption of any state law under threat of
   8-15  federal sanction; or
   8-16              (4)  are incorporated into state law but are not fully
   8-17  funded by the federal government.
   8-18        (b)  The attorney general shall prepare a report for the
   8-19  Constitutional Defense Council, the governor, and the legislature
   8-20  that includes all federal mandates that the attorney general
   8-21  identifies under Subsection (a).
   8-22        SECTION 2.  Chapter 322, Government Code, is amended by
   8-23  adding Section 322.014 to read as follows:
   8-24        Sec. 322.014.  COMPLIANCE WITH FEDERAL MANDATES ACT.  The
   8-25  board shall oversee the implementation of and shall enforce Chapter
   8-26  792, Government Code, in the budgeting process.
   8-27        SECTION 3.  The importance of this legislation and the
    9-1  crowded condition of the calendars in both houses create an
    9-2  emergency and an imperative public necessity that the
    9-3  constitutional rule requiring bills to be read on three several
    9-4  days in each house be suspended, and this rule is hereby suspended,
    9-5  and that this Act take effect and be in force from and after its
    9-6  passage, and it is so enacted.