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.