H.B. 426 78(R)    BILL ANALYSIS


H.B. 426
By: Christian
State Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Under current law, a state agency can adopt rules imposing additional
costs on local governments or persons without considering how those costs
will be paid for and without obtaining express authorization from the
legislature.  The purpose of House Bill 426 is to establish procedures
which place certain restrictions upon a state agency's ability to adopt
rules imposing such costs.  

RULEMAKING AUTHORITY

It is the opinion of the committee  that this bill does not expressly
grant any additional rulemaking authority to a state officer, department,
agency, or institution. 

ANALYSIS

House Bill 426 amends Subchapter B, Chapter 2001, of the Government Code
to redefine the authority of state agencies to adopt rules that impose
certain costs on local governments or persons. The bill provides that,
unless expressly authorized by the legislature in compliance with the
provisions of the bill, a state agency is prohibited  from adopting a rule
for which the notice given includes a  fiscal note estimating additional
costs to local governments as a result of enforcing or administering the
rule, or a note stating probable economic costs to persons required to
comply with the rule.  The bill authorizes a state agency to adopt a rule
for which the notice estimating the costs described above is given if the
legislature by law expressly authorizes the adoption of the rule with
those costs.  The bill provides that  a state agency  order finally
adopting a rule having such cost implications must include a reference to
the law authorizing the adoption of the rule with those costs.  

EFFECTIVE DATE

September 1, 2003.  The Act applies only to a rule proposed by a state
agency for which notice is given under Section 2001.023, Government Code,
on or after December 1, 2003.