By Nelson S.B. No. 136 74R1675 JSA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to state implementation of federal mandates. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 7, Government Code, is amended by adding 1-5 Chapter 753 to read as follows: 1-6 CHAPTER 753. IMPLEMENTATION OF FEDERAL MANDATES 1-7 Sec. 753.001. PURPOSE. This chapter is intended to ensure 1-8 that: 1-9 (1) the legal and political authority of this state is 1-10 given primacy in implementing state programs to comply with federal 1-11 mandates; 1-12 (2) federal mandates applicable to this state are 1-13 scrutinized to determine the extent to which those mandates exceed 1-14 the lawful authority of the federal government or are inconsistent 1-15 with the policy of this state; and 1-16 (3) the implementation of federal mandates does not 1-17 violate the rights of or impose undue regulatory or financial 1-18 burdens on this state, political subdivisions of this state, or the 1-19 people of this state. 1-20 Sec. 753.002. DEFINITION. In this chapter, "state agency" 1-21 means an office, department, board, or commission in the executive 1-22 branch of the government of this state. 1-23 Sec. 753.003. STATE AGENCY IMPLEMENTATION OF FEDERALLY 1-24 MANDATED PROGRAM. (a) A state agency that is required or 2-1 authorized to develop a state program to comply with a federal 2-2 statute shall implement and administer the program in good faith 2-3 compliance with the federal statute. In developing the program, 2-4 the state agency shall critically examine any applicable federal 2-5 regulation, guideline, or policy to identify any provision that: 2-6 (1) is inconsistent with the policy of this state; or 2-7 (2) does not advance the policy of this state in a 2-8 cost-effective manner. 2-9 (b) The agency shall implement and administer the program in 2-10 the most cost-effective manner possible, with due consideration 2-11 for: 2-12 (1) the long-term health, safety, and welfare of the 2-13 people of this state; and 2-14 (2) financial restraints, including limits on taxes, 2-15 debt, or expenditures provided by the Texas Constitution or other 2-16 law, imposed on this state, political subdivisions of this state, 2-17 or the people of this state. 2-18 (c) This section does not apply to a state program that: 2-19 (1) is not funded with appropriated money; and 2-20 (2) the state agency administers in a trustee or 2-21 custodial capacity. 2-22 Sec. 753.004. APPROPRIATION FOR FEDERALLY MANDATED PROGRAM. 2-23 (a) In appropriating money for a state program described by 2-24 Section 753.003, the legislature shall exercise a critical view 2-25 toward the interpretation of the applicable federal statute in any 2-26 applicable federal regulation, guideline, or policy. The 2-27 legislature may not appropriate money for the program unless the 3-1 legislature determines that: 3-2 (1) federal constitutional authority exists for the 3-3 federal mandate; 3-4 (2) state law authority exists for the state program; 3-5 and 3-6 (3) the state program: 3-7 (A) is necessary to protect the public health, 3-8 safety, or welfare; 3-9 (B) is necessary to implement the federal 3-10 statute; 3-11 (C) benefits the state by providing for 3-12 cost-effective implementation of the federal statute by this state, 3-13 political subdivisions of this state, or businesses in this state; 3-14 or 3-15 (D) benefits this state, political subdivisions 3-16 of this state, and businesses in this state by providing a 3-17 cost-effective means to meet a public health, safety, or welfare 3-18 standard established by state law that is higher than the federal 3-19 standard. 3-20 (b) A state agency that administers a state program 3-21 described by Section 753.003 shall include in its request for 3-22 appropriations the program citations to the federal constitutional 3-23 provisions and state laws that authorize the program. The 3-24 Legislative Budget Board shall examine the budget request and 3-25 determine whether additional state statutory authority is required 3-26 to implement the state program. The board shall report its 3-27 determination to the legislature. 4-1 (c) The Legislative Budget Board shall require a state 4-2 agency that administers a state program described by Section 4-3 753.003 to provide information relating to any cost savings or 4-4 reduction in regulatory burden that could be achieved by developing 4-5 state policies that meet the intent of the federal statute but do 4-6 not necessarily comply with all applicable federal regulations, 4-7 guidelines, and policies. The state agency shall advise the board 4-8 of any changes in state statutes that would be necessary to allow 4-9 the agency to implement the program at reduced cost or with a 4-10 reduced regulatory burden. The board shall review information 4-11 received under this subsection and make any related recommendations 4-12 to the legislature. 4-13 Sec. 753.005. FEDERAL MANDATE STUDY. (a) The attorney 4-14 general, in cooperation with any office or agency of the 4-15 legislative branch as determined by the speaker of the house and 4-16 lieutenant governor, shall conduct a study of the following 4-17 matters: 4-18 (1) identification of federal mandates expressing 4-19 broad federal policies that would best be implemented 4-20 state-by-state or that could be resisted because of the unique 4-21 circumstances that are present in each state and because of the 4-22 unnecessary burdens that are created by federal regulations and 4-23 policies; 4-24 (2) legal theories that support the right of each 4-25 state to implement or oppose federal mandates pursuant to the 4-26 state's own policies; 4-27 (3) practical methods, including the enactment of 5-1 state legislation, by which this state may fully exercise its 5-2 authority in the implementation of federal mandates; 5-3 (4) recommendations regarding federal legislation that 5-4 would ensure that the states have the necessary authority to 5-5 implement federal directives in a manner that is consistent with 5-6 state policy and is suited to the needs of each state; and 5-7 (5) possible funding sources for federal mandate 5-8 efforts and opportunities for this state to match other funding 5-9 sources or to cooperate with other entities in working towards 5-10 federal mandate solutions. 5-11 (b) In performing the study, the attorney general shall 5-12 consult with experts in the subject of federalism and federal 5-13 mandates, including: 5-14 (1) experts at public or private institutions of 5-15 higher education; 5-16 (2) attorneys in private practice who have researched 5-17 federal mandates or been involved in related litigation; and 5-18 (3) organizations and foundations that have an 5-19 interest in federalism and the imposition of federal mandates on 5-20 states and local governments. 5-21 (c) The attorney general shall report the findings of the 5-22 study to the legislature not later than October 1, 1996. 5-23 SECTION 2. This Act takes effect September 1, 1995. 5-24 SECTION 3. 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.