Commission Agenda Item No. 4
Exhibit A

RULES REQUIRED BY LEGISLATION
SENATE BILL 1289
PURCHASE OF IRON OR STEEL PRODUCTS
PROPOSAL PREAMBLE

1. Introduction.

        The Texas Parks and Wildlife Department proposes new §61.22, concerning Purchase of Iron or Steel Products.

        The new section would require the department to develop, implement, and follow guidelines and policies to ensure compliance with the provisions of Government Code, Chapter 2252, Subchapter F, which was created by the enactment of Senate Bill 1289 by the 85th Texas Legislature (Regular Session). The bill sets forth certain requirements for projects by governmental entities that involve the purchase of iron or steel products.

        Under the provisions of Government Code, §2252.202, as added by S.B. 1289, a governmental entity subject to the requirements of the bill is required to adopt rules to promote compliance with the requirements of the bill. The proposed new rule would establish the department’s intent to do so.

2. Fiscal Note.

        Jessica Davisson, Infrastructure Division Director, has determined that for each of the first five years that the new rule as proposed is in effect, any fiscal implications to state or local governments as a result of administering or enforcing the rule will be a result of the legislation that mandates the rule and not the rule itself.

3. Public Benefit/Cost Note.

        Ms. Davisson also has determined that for each of the first five years that the rule as proposed is in effect:

        (A) The public benefit anticipated as a result of enforcing or administering the proposed rules will be the agency’s compliance with the direction of the legislature.

        There will be no adverse economic effect on persons required to comply with the rule as proposed, since the rule affects only the department.

        (B) Under the provisions of Government Code, Chapter 2006, a state agency must prepare an economic impact statement and a regulatory flexibility analysis for a rule that may have an adverse economic effect on small businesses, micro-businesses, and rural communities. As required by Government Code, §2006.002(g), the Office of the Attorney General has prepared guidelines to assist state agencies in determining a proposed rule’s potential adverse economic impact on small businesses. Those guidelines state that an agency need only consider a proposed rule’s “direct adverse economic impacts” to small businesses and micro-businesses to determine if any further analysis is required. For that purpose, the department considers “direct economic impact “to mean a requirement that would directly impose recordkeeping or reporting requirements; impose taxes or fees; result in lost sales or profits; adversely affect market competition; or require the purchase or modification of equipment or services.

         The department has determined that the rule itself will not affect small businesses, micro-businesses, or rural communities. Therefore, the department has not prepared the economic impact statement or regulatory flexibility analysis described in Government Code, Chapter 2006.

        (C) The department has not drafted a local employment impact statement under the Administrative Procedures Act, §2001.022, as the agency has determined that the rule as proposed will not impact local economies.

        (D) The department has determined that because the rule as proposed does not impose a cost on regulated persons, it is not necessary to repeal or amend any existing rule.

        (E) In compliance with the requirements of Government Code, §2001.024, the department has prepared the following Government Growth Impact Statement (GGIS).  The rule as proposed, if adopted, will:

                 (1) neither create nor eliminate a government program;

                 (2) not result in an increase or decrease in the number of full-time equivalent employee needs;

                 (3) not result in a need for additional General Revenue funding;

                 (4) not affect the amount of any fee;

                 (5) create a new regulation;

                 (6) not expand, limit, or repeal an existing regulation;

                 (7) neither increase nor decrease the number of individuals subject to regulation; and

                 (8) have an insignificant positive impact on the state’s economy.

4. Request for Public Comment.