C.S.H.B. 425 78(R)    BILL ANALYSIS


C.S.H.B. 425
By: Christian
State Affairs
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, state agencies engaged in rulemaking may not always consider
legislative intent when proposing rules.  Also, many state agencies often
do not inform legislative authors and sponsors about rules relating to
their respective bills, and the agencies are only required to publish
proposed rules related to legislation in the Texas Register.  This leaves
a potential gap between the legislature's intent and the implementation of
the resulting rule.  Rules written by an agency can influence the effect
of a piece of legislation, and such rules should reflect the intent of the
legislation. Under current law, agencies with broad rulemaking authority
may interpret legislation in a way that could conflict with the intent of
the legislature.  The purpose of C.S.H.B. 425 is to implement procedures
to ensure that agency rules are consistent with legislative intent.   

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

C.S.H.B. 425 amends the Government Code by adding Section 322.015, which
would authorize the Legislative Budget Board to issue a letter clarifying
the meaning or intent of a provision in the General Appropriations Act or
another legislative enactment if the provision makes or affects an
appropriation.  The bill authorizes a state governmental entity to rely on
such a  letter in interpreting such a provision of law.  

C.S.H.B. 425 amends Chapter 2001 of the Government Code to require a state
agency, when proposing or adopting a rule, to inform each primary author
and primary sponsor of legislation enacted after January 1, 2003 that a
rule related to the member's legislation is being considered. C.S.H.B. 425
also requires the agency to inform such members of the time and place of
any public hearing or formal meeting regarding the contemplated
rulemaking, and to invite the member or the member's designated
representative to participate as a member of any advisory committee the
state agency appoints in connection with the contemplated rulemaking.
C.S.H.B. 425 also establishes notification requirements to each primary
author and sponsor with respect to emergency rules. 

C.S.H.B. 425 deletes provisions requiring each house of the legislature to
establish a process to refer proposed rules to appropriate standing
committees, provisions requiring agencies to deliver notice of  proposed
rules to the lieutenant governor and speaker of the house, and provisions
authorizing standing committees to send a statement supporting or opposing
adoption of a proposed rule. 

C.S.H.B. 425 adds Section 2001.0321 to the Government Code pertaining to
independent review of agency rules and the suspension of those rules by
the governor.  The bill authorizes the chair of any standing committee of
either house of the legislature to request the presiding officer of that
house to initiate an independent review of a proposed or adopted state
agency rule that has been in effect for 180 days or less.  Upon such a
request, the bill requires the presiding officer to timely notify the
petitioning chair whether the review will be conducted, and timely refer
the rule to the appropriate standing committee if a determination is made
that such review is appropriate.  

C.S.H.B. 425 establishes detailed timelines, procedures, and criteria for
standing committee review of a rule or proposed rule.  After such review,
the committee  may by majority vote recommend to  the presiding officer of
the appropriate house that the governor be requested to suspend the rule
or proposed rule.  If the presiding officer decides to make such a
request, the bill sets out a detailed mechanism for making the request. 

C.S.H.B. 425 sets out the criteria and the mechanism to be used, and the
timelines to be followed, by the governor if the governor decides to
suspend a rule, other than an emergency rule, adopted or proposed by a
state agency.  The bill also establishes procedures and timelines to be
followed by a state agency in the event the governor suspends a rule or
proposed rule.  

The provisions of C.S.H.B. 425 relating to independent review apply only
to rules for which notice is first published on or after October 1, 2003,
or to an emergency rule adopted on or after September 15, 2003. 

EFFECTIVE DATE

September 1, 2003. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 425 adds Section 322.015 to the Government Code as described
above.  The substitute adds language that requires state agencies to
inform each primary author and sponsor, rather than all authors and
sponsors as was specified in the original bill, about proposed or adopted
rules related to the member's legislation.  The substitute adds a
provision that the required notification only relates to legislation
enacted after January 1, 2003.  The substitute differs from the original
by requiring a state agency to inform the necessary members of the
legislature of the time and place of any formal meeting, rather than any
informal conference, in connection with the contemplated rulemaking.  The
substitute adds language which allows a member's designated representative
to participate in any public hearing or formal meeting, or serve as a
member of any advisory committee, on the contemplated rulemaking.  The
substitute adds Section 2001.0321 to the Government Code as described
above.  The substitute adds language to provide that the changes in law
made by the Act apply only in relation to a state agency rule for which
notice of the rule as proposed is first published in the Texas Register on
or after October 1, 2003, or an emergency rule adopted on or after
September 15, 2003.