IMF H.B. 828 75(R)BILL ANALYSIS STATE AFFAIRS H.B. 828 By: Turner, Bob 5-9-97 Committee Report (Unamended) BACKGROUND Currently, state law allows for legislative review of proposed state agency rules, by allowing each house of the legislature to create a process in which the presiding officer of either house refers a rule to a standing committee for review. Current statute further requires that state agencies deliver copies of proposed rules to the speaker of the house and the lieutenant governor when they file proposed bills with the secretary of state. The statute also allows a standing committee to vote on a statement in support or opposition of the proposed rule. PURPOSE As proposed, H.B. 828 would establish a process for each house of the legislature to review proposed rules of state agencies and recommend suspension by the governor. The bill would allow the presiding officer to send a state agency rule to a standing committee for review. The committee could then recommend that the the presiding officer recommend that the governor suspend the rule. H.B. 828 also establishes a process for the governor to suspend rules reviewed by this process. H.B. 828 would prohibit a state agency from adopting a substantive rule similar to a rule suspended by the governor through this process, for two years after the rule was suspended by the governor. RULEMAKING AUTHORITY It is the committee's opinion that this bill grants rulemaking authority to a state agency subject to the bill in SECTION 1 (Sec. 2001.0321(j), Government Code) of the bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 2001 of the Government Code by adding Section 2001.0321 as follows: Section 2001.0321 (a) allows a chair of any standing committee of either house of the legislature, or the author or sponsor of legislation authorizing a rule, to request an independent review by the appropriate standing committee of the rule proposed or a rule adopted by any state agency that has been in effect for less than 180 days. The presiding officer of the appropriate house shall notify the requester whether the review will be conducted or refer the review to a standing committee of the appropriate house within 10 days of the request. Section 2001.0321 (b) allows a standing committee that has had a rule review referred to it to review the rule by holding a public hearing or a meeting. In the process of the review the committee must consider: whether the rule is authorized by and consistent with the law; whether the rule complies with all other applicable law; and whether the rule can be replaced by a different rule that maintains legislative intent and would be less of a burden economically and on the public. Section 2001.0321 (c) allows the committee, by majority vote, to recommend to the presiding officer that the presiding officer recommend that the governor suspend the rule. Section 2001.0321 (d) allows the committee to meet by telephone conference call to review the rule or proposed rule. The notice of the meeting must specify at least one place where a telephone will be used for the meeting and will be audible to the public. Meetings must be recorded and recordings must be available to the public. Section 2001.0321 (e) allows the chair of the committee to hold a vote in person, by mail, or by marked ballot fax, on whether to recommend that the presiding officer of the appropriate house recommend that the governor suspend the rule. However, any deliberation among the members of the committee must be in writing, occur in a public meeting, or in a telephone conference call as allowed by this Section. Section 2001.0321 (f) If the chair decides to make a recommendation to the presiding officer in favor of recommending that the governor suspend the rule, the chair of the committee must give written notice of the committee recommendation to the presiding officer and the state agency within 10 days of making the recommendation. Section 2001.0321 (g) if the committee recommends that the governor suspend the rule, the chair of the committee shall give written notice of the recommendation to each member of the house in which the committee serves within 10 days of making the recommendation. Any member of the house may file a letter of support or objection within 10 days of receiving written notice of the committee's recommendation. Section 2001.0321 (h) the presiding officer of the appropriate house may recommend that the governor suspend a rule on recommendation of the committee within 10 days of receiving written notice of the committee's decision. If the presiding officer recommends that the governor suspend the rule, the presiding officer must give written notice to the governor, the affected state agency, the secretary of state, and the presiding officer of the other house of the legislature. Section 2001.0321 (i) at the request of either presiding officer of the house, the governor may suspend a rule or proposed rule. The governor must state the grounds for suspending the rule and the date the suspension takes effect. The effective date may not be earlier than the 30th day after the date of the proclamation. No later than 5 days after the proclamation the governor must deliver a certified copy of the proclamation to the affected state agency and file notice to have it printed in the Texas Register. Section 2001.0321 (j) prohibits a state agency from adopting a rule containing the substance of the suspended rule for two years after suspension of the rule, unless the governor consents to adoption of the bill. SECTION 2. Amends Subchapter B, Chapter 2001 of the Government Code by adding Section 2001.0322 as follows: Section 2001.0322 (a) creates the Agency Rules Advisory Committee. (b) states that the committee is composed of: the governor; the lieutenant governor; the speaker of the house; the executive director of the Sunset Advisory Commission; and the executive director of the Texas Legislative Council. (c) requires the advisory committee to consider possible approaches to legislative review of promulgated rules by state agencies and report to the legislature by November 1, 1998. (d) provides that the staff and offices of the members of the committee shall serve as staff and offices for the committee. (e) states that this Section expires August 31, 1999. SECTION 3. Repeals Section 2001.032 of the Government Code that allows each house to establish a process for state agency rule review.