Some administrative agencies are authorized or created by the Texas Constitution. Most agencies are created by the passing of a legislative bill. Before the bill is passed, however, it is forwarded to the Sunset Advisory Commission. The Commission determines if:
- The proposed agency's functions could be carried out by existing agencies,
- The proposed regulation is the least restrictive to adequately protect the public
- The bill provides for adequate public input regarding any proposed regulatory function, and
- The bill provides for an adequate method of dealing with a conflict of interest within the agency.
The Commission's adverse determination does not prevent the agency from being formed. Nevertheless this process is supposed to provide a check on the Legislature's desire to wantonly form administrative agencies.
Once the bill is passed the Agency can come into existence.
