1-1 By: Sims, Brown S.B. No. 978
1-2 (In the Senate - Filed March 7, 1995; March 8, 1995, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 18, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 2; April 18, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 978 By: Brown
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to cost-benefit analysis of environmental rules proposed
1-11 for adoption by certain state agencies.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subchapter B, Chapter 2001, Government Code, is
1-14 amended by adding Section 2001.0225 to read as follows:
1-15 Sec. 2001.0225. COST-BENEFIT ANALYSIS OF MAJOR ENVIRONMENTAL
1-16 RULES. (a) This section applies only to a rule adopted by the
1-17 General Land Office, the Department of Agriculture, the Texas
1-18 Natural Resource Conservation Commission, the Railroad Commission
1-19 of Texas, or the Texas Department of Health the intended result of
1-20 which is to:
1-21 (1) exceed a standard set by federal law;
1-22 (2) exceed an express requirement of state law;
1-23 (3) exceed a requirement of a delegation agreement or
1-24 contract between the state and an agency or representative of the
1-25 federal government to implement a state and federal program; or
1-26 (4) impose a new requirement under the general
1-27 rulemaking authority of the agency.
1-28 (b) Before adopting a major environmental rule covered by
1-29 this section, a state agency covered by this section shall consider
1-30 and estimate the cost the proposed rule will have on this state and
1-31 the net benefits the proposed rule will provide for this state.
1-32 (c) When giving notice of a major environmental rule covered
1-33 by this section, a state agency covered by this section shall
1-34 incorporate into the fiscal note required by Section 2001.024 a
1-35 draft impact statement that includes the cost and net benefits of
1-36 the proposed rule. In addition to the cost and net benefits, the
1-37 draft impact statement must:
1-38 (1) state that there is an opportunity for public
1-39 comment on the draft impact statement and that all comments will be
1-40 incorporated into the final cost-benefit analysis or will otherwise
1-41 be responded to in the publication of the final rule;
1-42 (2) describe, if applicable, reasonable alternative
1-43 methods for achieving the purpose of the rule that were considered
1-44 by the agency and state the reasons for rejecting those
1-45 alternatives in favor of the proposed rule; and
1-46 (3) identify the data and methodology used in making
1-47 estimates required by this section.
1-48 (d) A state agency order finally adopting a rule covered by
1-49 this section shall revise the draft impact statement into a final
1-50 cost-benefit analysis that incorporates comments received or states
1-51 the reasons the agency disagrees with each submission or comment.
1-52 (e) A rule covered by this section does not take effect
1-53 unless the draft impact statement and final cost-benefit analysis
1-54 are prepared according to this section.
1-55 (f) It is the intent of the legislature that a state agency
1-56 covered by this section spend no more funds in drafting and
1-57 adopting rules as required by this section than the agency would
1-58 have spent under the requirements of the law as it existed
1-59 immediately before September 1, 1995. It is the intent of the
1-60 legislature that a state agency covered by this section redirect
1-61 resources used in the proposal and adoption of rules immediately
1-62 before September 1, 1995, to accomplish the purposes of this
1-63 section.
1-64 (g) In this section:
1-65 (1) "Cost" means a direct or indirect adverse effect
1-66 of a rule, including an adverse effect that is economic in nature,
1-67 an increased cost to state or local government, and an increase in
1-68 risk to human health, safety, or the environment that may result
2-1 from practices required by or expected to be implemented in order
2-2 to comply with the rule or from likely alternatives to practices
2-3 prohibited by the rule.
2-4 (2) "Major environmental rule" means a rule the
2-5 specific intent of which is to regulate an activity to protect the
2-6 environment or reduce risks to human health from environmental
2-7 exposure that is universally applied to an entire sector of the
2-8 economy, that has a major impact on a broad segment of the economy,
2-9 or that has a significant impact on any single segment of the
2-10 economy.
2-11 (3) "Net benefits" means the overall risk reduction,
2-12 considering the potential risks posed by a rule, plus other
2-13 benefits expected from the rule.
2-14 SECTION 2. This Act takes effect September 1, 1995, and
2-15 applies only to an environmental rule proposed by a state agency on
2-16 or after that date.
2-17 SECTION 3. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.
2-22 * * * * *