SRC-DPW S.B. 382 76(R)BILL ANALYSIS Senate Research CenterS.B. 382 By: Duncan State Affairs 6/28/1999 Enrolled DIGEST Currently, Texas law requires state agencies to provide a reasoned justification for the adoption of rules. Texas law allows for nonspecified considerations, in addition to those required by law, in providing a reasoned justification. This bill provides requirements for state agency orders adopting rules and substantial compliance with rulemaking requirements. PURPOSE As enrolled, S.B. 382 provides requirements for state agency orders adopting rules and substantial compliance with rulemaking requirements. RULEMAKING AUTHORITY Rulemaking authority is granted to a state agency in SECTION 1 (Section 2001.006(b), Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 2001A, Government Code, by adding Section 2001.006, as follows: Sec. 2001.006. ACTIONS PREPARATORY TO IMPLEMENTATION OF STATUTE OR RULE. Defines "state agency." Sets forth requirements for legislation to be considered to have "become law." Authorizes a state agency, in preparation for implementation of legislation that has become law but has not taken effect, to adopt a rule or take other administrative action determined necessary or appropriate provided that the agency is authorized to take such action had the legislation been in effect at the time of the action. Authorizes a state agency, in preparation for the implementation of a rule that has been finally adopted by a state agency but has not taken effect, to take administrative action provided that the agency is authorized to take such action had the legislation been in effect at the time of the action. Prohibits a rule adopted under Subsection (b) from taking effect earlier than the legislation being implemented takes effect. Prohibits administrative action taken under Subsection (b) or (c) from resulting in implementation or enforcement of the applicable legislation or rule before the legislation or rule takes effect. SECTION 2. Amends Section 2001.033, Government Code, to require a state agency adopting a rule to include reasoned justification for the rule as a whole consisting solely of certain information, including a summary, rather than a restatement, of the basis for the rules adopted which demonstrates a rational connection between the factual basis for the rule and the rule as adopted. Provides that nothing to be construed to require additional analysis of alternative not adopted by an agency beyond that required by Subdivision (1)(C) or to require the reasoned justification shall be stated separately from the statements required in Subdivision (1). Makes nonsubstantive changes. SECTION 3. Amends Sections 2001.035, Government Code, to provide that a rule is voidable unless adopted by a state agency in compliance with Section 2001.0225, rather than 2001.023. Provides that compliance requirements for Section 2001.033 are met if it is demonstrated that the rule adopted is a reasonable means to a legitimate objective. Provides that technical defects are not grounds for invalidation of a rule. Deletes text which provides that a rule adopted after January 1, 1976 is not valid unless adopted by an agency. SECTION 4. Amends Chapter 2001B, Government Code, by adding Section 2001.039, as follows: Sec. 2001.039. SCOPE AND EFFECT OF ORDER INVALIDATING AGENCY RULE. Authorizes a court to remand a rule to the agency for readoption or revision, when one or more procedural requirements of Sections 2001.0225 through 2001.034 have not been met, and requires the provision of a reasonable time for the agency to either revise or readopt the rule through established procedure if the rule is remanded. Requires a rule to remain effective during a remand period. SECTION 5. Amends Section 2006.001, Government Code, to define "micro-business." Makes conforming changes. SECTION 6. Amends Sections 2006.002(a) and (f), Government Code, to require a state agency to reduce an adverse economic effect on a micro-business resulting from the agency's consideration of adopting a rule, if feasible and legal. Requires, rather than authorizes, a state agency to adopt provisions concerning micro-businesses that are uniform with those outlined in Subsections (b) - (d) for small businesses, rather than similar to Subsection (b), in order to reduce an adverse effect of rules on micro-businesses. SECTION 7. Repealer: Sections 2 and 3, Chapter 1067, Acts of the 75th Legislature, Regular Session, 1997. SECTION 8. Effective date: September 1, 1999. Makes application of this Act prospective to January 1, 1998. Exempts challenges to a rule in a court action brought before September 1, 1999. SECTION 9. Emergency clause.