SRC-ARR S.B. 794 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 794
76R3499 JRD-DBy: Ellis
State Affairs
4/20/1999
As Filed


DIGEST 

The Comptroller conducted regulatory focus group meeting with
representatives of various industries around Texas. The group heard
testimony citing problems understanding state agency rules and regulations
and recommended that the rules be simplified. Establishing expiration or
sunset dates for administrative rules is a growing regulatory reform trend
that helps to establish goodwill between private enterprises and oversight
agencies by outdating rules. S.B. 794 would require that state
administrative rules be reviewed periodically to keep them relevant to
current business practices and in compliance with applicable statutes. 

PURPOSE

As proposed, S.B. 794 requires periodic review and expiration of state
agency rules in coordination with the sunset review process and to certain
other aspects of state agency rulemaking. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to state agencies in SECTION 1 (Section
2001.039(c)-(e), Chapter 2001B, Government Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2001B, Government Code, by adding Section
2001.039, as follows: 

Sec. 2001.039. AGENCY REVIEW OF EXISTING RULES; EXPIRATION OF RULES.
Requires a state to review and consider for readoption each of its rules in
accordance with this section. Requires a state agency that is scheduled for
review by the Sunset Advisory Commission (commission) in accordance with
Chapter 325, to review and consider for readoption each of its rules during
the four year period preceding the date on which the agency is scheduled to
be abolished if it is not continued in existence as provided by Chapter
325. Requires a state agency that is scheduled for review by the commission
in accordance with Chapter 325 but that is not scheduled to be abolished,
to review and consider for readoption each of its rules during the four
year period preceding the September 1 following the regular session during
which the legislature would be expected to consider the results of the
scheduled sunset review of the agency. Requires a state agency that is not
scheduled for review by the commission in accordance with Chapter 325 to
review and consider for readoption each of its rules during a four year
period for readoption every 12 years beginning with the four year period
during which state agencies scheduled to be abolished on September 1, 2013,
in connection with the sunset review process, review their rules. Requires
each state agency, by rule, to provide that each of the agency's rules
expires on the September 1 immediately  following the four year period
during which the agency is required to review its rules under Subsection
(b). Requires the agency to accordingly adjust the period during which its
reviews its rules under Subsection (b) and by rule to accordingly change
the date on which it rules are scheduled to expire under Subsection (c).
Requires a state agency to readopt a rule, readopt a rule with amendments,
or allow a rule to expire as the result of reviewing the rule under this
section. Provides that the procedures of this subchapter relating to the
original adoption of a rule apply to the review of a rule and to any
resulting readoption or readoption with amendments of the rule, except as
provided by this subsection and Subsection (g). Provides that the Texas
Administrative Code citation to a rule under review  satisfies the
requirements of this subchapter relating to publishing the text of the rule
unless the agency readopts the rule with amendments as a result of the
review. Provides that an amendment only to the expiration date of a rule
does not require publishing the text of the rule that is being scheduled
for expiration. Requires a state agency's review of a rule to include an
assessment of whether the reasons for initially adopting the rule continue
to exist. Requires the review to also include an assessment of whether the
agency still needs all the information required under any agency, and if
so, whether the agency needs the reports as often as the rule requires. 

SECTION 2. Amends Section 2001.024, Government Code, by adding Subsection
(d), to require the text of the proposed rule to be written in plain
language. Requires the rule to be well organized.  

SECTION 3. Amends Sections 2001.036(a) and (b), Government Code, to
authorize a state agency to prescribe that the rule is effective on a
stated date, less than 20 days after the filing date, that occurs after the
adopted rule has been filed with the secretary of state after notice of the
filing of the adopted rule and of the rules's accelerated effective date is
published  in the Texas Register, if the agency did not receive any public
comment concerning the proposed rule after notice of the proposed rule was
published in the Texas Register, and the agency considers the rule to be
controversial. Requires the agency to include in its order adopting a rule
that will have an accelerated effective date under Subsection (a)(3), the
date that the rule will take effect and a statement that the rule meets the
requirements of Subsection (a)(3). Requires the agency to take appropriate
measures to make emergency rules and other rules with an accelerated
effective date known to persons who may be affected by them.  

SECTION 4. Provides that the duties prescribed by this section apply only
to state agency rules that are in effect on September 1, 1999, and that
have not already been reviewed in accordance with Section 167, Article IX,
Chapter 1452, Acts of the 75th Legislature, Regular Session, 1997. Requires
the agency to review each of those rules in accordance with the provisions
of Section 2001.0319, as added by this Act, that do not apply to the timing
of the review, and in accordance with this section, not later than August
31, 2001. Requires each state agency not later than August 31, 2001 to
develop and send to the secretary of state for publication in the Texas
Register a plan under which the agency will review its existing rules under
this section. Requires the plan to state for each of those rules the date
by which the agency will begin the review. 

SECTION 5. Effective date: September 1, 1999.

SECTION 6. Emergency clause.