C.S.H.B. 3442 78(R)    BILL ANALYSIS


C.S.H.B. 3442
By: Pickett
Appropriations
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Due to the current budget shortfall,  state agencies and institutions of
higher education were asked to prioritize spending based on core functions
and essential services.  The committee looked to these priorities in
preparation of the budget; however, certain statutory changes are also
needed to conform with appropriations levels in the 2004-05 General
Appropriations Act. Committee Substitute House Bill 3442 authorizes these
statutory changes for the natural resources agencies listed under Article
VI of the 2004-05 General Appropriations Act.   
    

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Railroad Commission in SECTION 3  (Section 102.006,
Utilities Code) of this substitute.  It is the committee's opinion that
rulemaking authority expressly granted to the Railroad Commission is
modified in SECTION 3  (Section 102.006, Utilities Code) of this
substitute.   
    

ANALYSIS

Committee Substitute House Bill 3442 authorizes any state agency that
receives an appropriation under Article VI of the General Appropriations
Act to reduce or recover expenditures by (1) consolidating reports or
publications the agency is required to make, and filing or delivering any
of those  reports or publications exclusively by electronic means; (2)
extending the effective period of any license, permit, or registration the
agency grants or administers; (3) contracting services with other
governmental entities or to private vendors; (4) adopting additional
eligibility requirements for benefits; (5) requiring all communications
with state agencies be made electronically; and (6) adopting fees to cover
any costs the agency incurs in performing its duties. 

Committee Substitute House Bill 3442 directs the Texas Animal Health
Commission to reduce its expenditures of state money related to regulating
equine riding stables and repeals the Riding Stables Chapter of the
Occupations Code. 

Committee Substitute House Bill 3442 requires the Railroad Commission by
rule to provide for administrative hearings in contested cases to be
conducted by one or more members of the Railroad Commission, Railroad
Commission Hearings Examiners, or by the utility division of the State
Office of Administrative Hearings.  This substitute also requires the
above-referenced rules to provide for a Railroad Commission Hearings
Examiner or the utility division of the State Office of Administrative
Hearings to conduct contested case hearings that are not conducted by a
member or members of the Railroad Commission. 

Committee Substitute House Bill 3442 allows the Railroad Commission to
delegate to a Railroad Commission Hearings Examiner or to the utility
division of the State Office of Administrative Hearings the authority to
make a final decision and to issue findings and orders in a proceeding in
which there is no contested issue of fact or law.  This substitute also
requires the Railroad Commission by rule to define the procedures by which
it delegates final decision-making authority to a Railroad Commission
Hearings Examiner or the utility division of the State Office of
Administrative Hearings. 

   
 
Committee Substitute House Bill 3442 establishes that, for the purposes of
judicial review, final decisions of a Railroad Commission Hearings
Examiner or an Administrative Law Judge of the State Office of
Administrative Hearings in a proceeding in which there is no contested
issue of fact or law are the same as a final decision of the Railroad
Commission unless a formal review of the decision is requested by a
Commission member. 
  
Committee Substitute House Bill 3442 requires the State Office of
Administrative Hearings to charge the Railroad Commission a fixed annual
rate for hearings conducted by the office if a legislative appropriation
is made for that purpose.  If a legislative appropriation is not made for
that purpose, the State Office of Administrative Hearings is required to
charge the Railroad Commission an hourly rate for hearings conducted by
the office under this section. 


EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.    


COMPARISON OF ORIGINAL TO SUBSTITUTE

Committee Substitute House Bill 3442 modifies the original by adding
language that authorizes any state agency that receives an appropriation
under Article VI of the General Appropriations Act to reduce or recover
expenditures by (1) consolidating reports or publications the agency is
required to make, and filing or delivering any of those  reports or
publications exclusively by electronic means; (2) extending the effective
period of any license, permit, or registration the agency grants or
administers; (3) contracting services with other governmental entities or
to private vendors; (4) adopting additional eligibility requirements for
benefits; (5) requiring all communications with state agencies be made
electronically; and (6) adopting fees to cover any costs the agency incurs
in performing its duties. 

Committee Substitute House Bill 3442 modifies the original by adding
language that requires (1) the Railroad Commission by rule to provide for
administrative hearings in contested cases to be conducted by one or more
members of the Railroad Commission, Railroad Commission Hearings
Examiners, or by the utility division of the State Office of
Administrative Hearings and (2) the above-referenced rules to provide for
a Railroad Commission Hearings Examiner or the utility division of the
State Office of Administrative Hearings to conduct contested case hearings
that are not conducted by a member or members of the Railroad Commission. 

Committee Substitute House Bill 3442 modifies the original by adding
language that (1) allows the Railroad Commission to delegate to a Railroad
Commission Hearings Examiner or to the utility division of the State
Office of Administrative Hearings the authority to make a final decision
and to issue findings and orders in a proceeding in which there is no
contested issue of fact or law, and (2) requires the Railroad Commission
by rule to define the procedures by which it delegates final
decision-making authority to a Railroad Commission Hearings Examiner or
the utility division of the State Office of Administrative Hearings. 

Committee Substitute House Bill 3442 modifies the original by adding
language that establishes that, for the purposes of judicial review, final
decisions of a Railroad Commission Hearings Examiner or an Administrative
Law Judge of the State Office of Administrative Hearings in a proceeding
in which there is no contested issue of fact or law are the same as a
final decision of the Railroad Commission unless a formal review of the
decision is requested by a Commission member. 
  
Committee Substitute House Bill 3442 modifies the original by adding
language that requires the State Office of Administrative Hearings to
charge the Railroad  Commission a fixed annual rate for hearings conducted
by the office if a legislative appropriation is made for that purpose, and
that, if a legislative appropriation is not made for that purpose, the
State Office of Administrative Hearings is required to charge the Railroad
Commission an hourly rate for hearings conducted by  the office under this
section. 

Committee Substitute House Bill 3442 modifies the original by removing
language that authorizes the legislature to reduce statutory amounts going
to Article VI state agencies if necessary to balance the budget. 

Committee Substitute House Bill 3442 modifies the original by removing
language that directs the General Land Office to reduce its expenditures
related to its trustee program and coastal erosion control and amends the
Natural Resources Code to require that when the balance of the Coastal
Protection Fund reaches $40 million, income on the investment, in an
amount not to exceed $5 million, will be transferred to the Railroad
Commission for the Oil-Field Cleanup Fund and income in excess of $5
million will be credited to Coastal Protection Fund.  This substitute
also modifies the original by removing language that amends the Natural
Resources Code by deleting language that limits the use of the Coastal
Protection Fund to those listed in the statute and that requires the fund
to be used specifically for protecting beaches and natural resources. 

Committee Substitute House Bill 3442 modifies the original by removing
language that (1) directs the Parks and Wildlife Department to reduce
expenditures by reducing the amounts used for local park grants; (2)
amends the Parks and Wildlife Code to eliminate sales tax revenue as a
source of funds for the states parks account and the Texas recreation and
parks account; and (3) amends the Tax Code to require that all revenue
from the sales, storage, and use taxes on sporting goods be credited to
the Parks and Wildlife Department.   

Committee Substitute House Bill 3442 modifies the original by removing
language that directs the Railroad Commission to reduce expenditures by
combining its oil spill response functions with the General Land Office,
imposing user and operation fees on railroads for use in rail safety
programs adopted by the commission, and imposing pipeline safety fees on
pipeline consumers and operators for pipeline safety programs adopted by
the commission.