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.