By Junell                                        H.B. No. 835

      75R1262 JRD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the expiration and readoption of state agency rules.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter B, Chapter 2001, Government Code, is

 1-5     amended by adding Section 2001.0365 to read as follows:

 1-6           Sec. 2001.0365.  EXPIRATION AND READOPTION OF RULES.  (a)  A

 1-7     state agency rule that takes effect on or after September 1, 1997,

 1-8     expires on the fourth anniversary of the date on which the rule

 1-9     takes effect unless the rule expires on an earlier date in

1-10     accordance with other law.

1-11           (b)  A state agency may readopt, with or without amendments,

1-12     an expired rule or a rule scheduled for expiration. All laws and

1-13     procedures that apply to rulemaking apply to the readopted rule and

1-14     to the readoption process, including laws and procedures relating

1-15     to the proposal, adoption, effect, duration, or operation of a

1-16     rule.

1-17           (c)  A state agency that gives notice in accordance with

1-18     Sections 2001.023 and 2001.024 of its intent to readopt an expired

1-19     rule or a rule scheduled for expiration may readopt the rule on an

1-20     emergency basis in the manner prescribed by and for the periods

1-21     allowed under Section 2001.034.

1-22           (d)  A state agency that intends to allow a rule to expire by

1-23     operation of Subsection (a) without readopting the rule shall give

1-24     notice of its  intent not later than the 45th day before the date

 2-1     of expiration. The agency shall include in the notice the text of

 2-2     the rule, or a summary of the rule if the text is voluminous, and

 2-3     the agency's reasons for not proposing readoption. The agency shall

 2-4     file the notice with the secretary of state for publication in the

 2-5     Texas Register and shall mail the notice to the governor, the

 2-6     presiding officer of each house of the legislature, and each person

 2-7     who has made a written request to the agency for advance notice of

 2-8     its rule-making proceedings. Failure to comply with this subsection

 2-9     does not affect the expiration of the rule.

2-10           (e)  For purposes of expiration or readoption under this

2-11     section:

2-12                 (1)  each section of a rule is considered to be a

2-13     separate rule;

2-14                 (2)  if a rule is not organized into sections, then

2-15     each unit of the rule that is most analogous to a section is

2-16     considered to be a separate rule;

2-17                 (3)  a rule is considered to have taken effect on the

2-18     date the rule as originally adopted took effect or, if the rule has

2-19     been readopted, on the  date the rule as readopted took effect; and

2-20                 (4)  an amendment to a rule is considered to be a

2-21     readoption of the rule only if the agency explicitly states in its

2-22     Texas Register notice of the proposed amendment that the amendment

2-23     is to be considered a readoption of the rule.

2-24           (f)  A state agency rule that takes effect before September

2-25     1, 1997, expires September 1, 2001, unless the rule expires on an

2-26     earlier date  under Subsection (g) or other law. A state agency may

2-27     readopt, in accordance with this section and with or without

 3-1     amendments, a rule that expired or is scheduled for expiration

 3-2     under this subsection and Subsection (g). This subsection expires

 3-3     September 2, 2001.

 3-4           (g)  Each state agency shall develop a plan to review all of

 3-5     its rules that are scheduled for expiration under Subsection (f).

 3-6     The plan must provide for the review of at least 25 percent of

 3-7     those rules during the state fiscal year beginning September 1,

 3-8     1997, at least 25 percent of those rules during the state fiscal

 3-9     year beginning September 1, 1998, at least 25 percent of those

3-10     rules during the state fiscal year beginning September 1, 1999, and

3-11     the remainder of those rules during the state fiscal year beginning

3-12     September 1, 2000. Not later than November 1 of each fiscal year,

3-13     each state agency shall develop and send to the secretary of state

3-14     for publication in the Texas Register the agency's review plan for

3-15     that fiscal year that lists the rules the agency proposes to review

3-16     during that fiscal year. Each agency rule that is listed in the

3-17     agency's review plan for a fiscal year expires at the end of the

3-18     last day of that fiscal year. This subsection does not prohibit an

3-19     agency from adopting, readopting, amending, or repealing a rule

3-20     during a fiscal year without regard to whether it is listed in the

3-21     annual review plan for that year. This subsection expires September

3-22     1, 2001.

3-23           SECTION 2.  Section 2001.003(6), Government Code, is amended

3-24     to read as follows:

3-25                 (6)  "Rule":

3-26                       (A)  means a state agency statement of general

3-27     applicability that:

 4-1                             (i)  implements, interprets, or prescribes

 4-2     law or policy; or

 4-3                             (ii)  describes the procedure or practice

 4-4     requirements of a state agency;

 4-5                       (B)  includes the amendment, readoption, or

 4-6     repeal of a prior rule; and

 4-7                       (C)  does not include a statement regarding only

 4-8     the internal management or organization of a state agency and not

 4-9     affecting private rights or procedures.

4-10           SECTION 3.  Section 2001.024, Government Code, is amended to

4-11     read as follows:

4-12           Sec. 2001.024.  CONTENT OF NOTICE.  The notice of a proposed

4-13     rule must include:

4-14                 (1)  a brief explanation of the proposed rule;

4-15                 (2)  the text of the proposed rule, except any portion

4-16     omitted under Section 2002.014, prepared in a manner to indicate

4-17     any words to be added or deleted from the current text;

4-18                 (3)  a statement of the statutory or other authority

4-19     under which the rule is proposed to be adopted, including:

4-20                       (A)  a concise explanation of the particular

4-21     statutory or other provisions under which the rule is proposed;

4-22                       (B)  the section or article of the code affected;

4-23     and

4-24                       (C)  a certification that the proposed rule has

4-25     been reviewed by legal counsel and found to be within the state

4-26     agency's authority to adopt;

4-27                 (4)  a fiscal note showing the name and title of the

 5-1     officer or employee responsible for preparing or approving the note

 5-2     and stating for each year of the first five years that the rule

 5-3     will be in effect:

 5-4                       (A)  the additional estimated cost to the state

 5-5     and to local governments expected as a result of enforcing or

 5-6     administering the rule;

 5-7                       (B)  the estimated reductions in costs to the

 5-8     state and to local governments as a result of enforcing or

 5-9     administering the rule;

5-10                       (C)  the estimated loss or increase in revenue to

5-11     the state or to local governments as a result of enforcing or

5-12     administering the rule; and

5-13                       (D)  if applicable, that enforcing or

5-14     administering the rule does not have foreseeable implications

5-15     relating to cost or revenues of the state or local governments;

5-16                 (5)  a note about public benefits and costs showing the

5-17     name and title of the officer or employee responsible for preparing

5-18     or approving the note and stating for each year of the first five

5-19     years that the rule will be in effect:

5-20                       (A)  the public benefits expected as a result of

5-21     adoption of the proposed rule; and

5-22                       (B)  the probable economic cost to persons

5-23     required to comply with the rule;

5-24                 (6)  the local employment impact statement prepared

5-25     under Section 2001.022, if required;

5-26                 (7)  a request for comments on the proposed rule from

5-27     any interested person;

 6-1                 (8)  a statement that the proposed rule is a new rule,

 6-2     an amended rule, a readopted rule, or a readopted and amended rule,

 6-3     as applicable; and

 6-4                 (9) [(8)]  any other statement required by law.

 6-5           SECTION 4.  Section 2001.033, Government Code, is amended to

 6-6     read as follows:

 6-7           Sec. 2001.033.  STATE AGENCY ORDER ADOPTING RULE.  A state

 6-8     agency order finally adopting a rule must include:

 6-9                 (1)  a reasoned justification of the rule, including:

6-10                       (A)  a summary of comments received from parties

6-11     interested in the rule that shows the names of interested groups or

6-12     associations offering comment on the rule and whether they were for

6-13     or against its adoption;

6-14                       (B)  a restatement of the rule's factual basis;

6-15     and

6-16                       (C)  the reasons why the agency disagrees with

6-17     party submissions and proposals;

6-18                 (2)  a concise restatement of the particular statutory

6-19     provisions under which the rule is adopted and of how the agency

6-20     interprets the provisions as authorizing or requiring the rule;

6-21                 (3)  the expiration date of the rule; and

6-22                 (4) [(3)]  a certification that the rule, as adopted,

6-23     has been reviewed by legal counsel and found to be a valid exercise

6-24     of the agency's legal authority.

6-25           SECTION 5.  Section 2002.051, Government Code, is amended by

6-26     adding Subsection (d) to read as follows:

6-27           (d)  The secretary of state shall publish with a rule:

 7-1                 (1)  the expiration date of the rule; or

 7-2                 (2)  information relating to the expiration process

 7-3     applicable to the rule, if the secretary does not know the

 7-4     expiration date.

 7-5           SECTION 6.  Section 61.027, Education Code, is amended to

 7-6     read as follows:

 7-7           Sec. 61.027.  RULES OF PROCEDURE; HEARINGS; NOTICE; MINUTES.

 7-8     The board shall adopt and publish rules and regulations in

 7-9     accordance with and under the conditions applied to other agencies

7-10     by Chapter 2001, Government Code, including conditions relating to

7-11     the automatic expiration of rules, to effectuate the provisions of

7-12     this  chapter.  The board shall grant any institution of higher

7-13     education a hearing upon request and after reasonable notice.

7-14     Minutes of all meetings shall be available in the board's office

7-15     for public inspection.

7-16           SECTION 7.  This Act takes effect September 1, 1997.

7-17           SECTION 8.  The importance of this legislation and the

7-18     crowded condition of the calendars in both houses create an

7-19     emergency and an imperative public necessity that the

7-20     constitutional rule requiring bills to be read on three several

7-21     days in each house be suspended, and this rule is hereby suspended.