To Cut Rules, Bill Adds An Office

The text as introduced · 2,765 words

89R15035 CS-F

By: Capriglione
H.B. No. 10

A BILL TO BE ENTITLED

AN ACT

relating to reforming the procedure by which state agencies adopt

rules and impose regulatory requirements and the deference given to

the interpretation of laws and rules by state agencies in certain

judicial proceedings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. This Act may be cited as the Regulatory Reform

and Efficiency Act.

SECTION 2. Subtitle E, Title 4, Government Code, is amended

by adding Chapter 465 to read as follows:

CHAPTER 465. REGULATORY AND RULEMAKING EFFICIENCY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 465.0001. DEFINITIONS. (a) The definitions in

Chapter 2001 apply to this chapter.

(b) In this chapter:

(1) "Institution of higher education" has the meaning

assigned by Section 61.003, Education Code.

(2) "Office" means the Texas Regulatory Efficiency

Office.

(3) "Panel" means the Texas Regulatory Efficiency

Advisory Panel.

Sec. 465.0002. APPLICATION OF SUNSET ACT TO OFFICE AND

PANEL. (a) The Texas Regulatory Efficiency Office and the Texas

Regulatory Efficiency Advisory Panel are subject to Chapter 325

(Texas Sunset Act).

(b) Unless continued in existence as provided by Chapter 325

(Texas Sunset Act), the office and panel are abolished September 1,

2037.

SUBCHAPTER B. TEXAS REGULATORY EFFICIENCY OFFICE

Sec. 465.0051. ESTABLISHMENT OF OFFICE. The Texas

Regulatory Efficiency Office is established as an office within the

office of the governor.

Sec. 465.0052. PURPOSES OF OFFICE. (a) The office is

established to:

(1) identify and expand opportunities for

implementing efficiencies in:

(A) the process by which state agencies adopt

rules;

(B) the regulatory review process; and

(C) the manner in which contested cases are

conducted;

(2) assist state agencies in identifying:

(A) unnecessary and ineffective rules;

(B) the effect and cost to this state and

regulated persons of the agencies' rules and proposed rules; and

(C) opportunities to repeal or amend rules to

provide effective protection to the public with the least cost and

inconvenience to regulated persons;

(3) coordinate with the secretary of state, the

Department of Information Resources, and other state agencies in

the secretary of state's efforts under Section 2001.007 to:

(A) improve public access to information

regarding state agency rules, forms, and filings; and

(B) create an interactive Internet website for

use by the public to search and obtain information regarding rules,

forms, and filings applicable to specific regulated occupations,

industries, professions, and activities;

(4) establish a goal for each state agency to reduce

rules or other regulatory requirements, including by:

(A) eliminating unnecessary or ineffective rules

or other regulatory requirements; and

(B) reducing the inefficiencies resulting from

rules or other regulatory requirements adopted by the agency by:

(i) reducing required training hours;

(ii) reducing the number of forms a

regulated person is required to complete;

(iii) reducing the amount of information

required by forms that a regulated person is required to complete;

(iv) reducing the amount of or eliminating

fees imposed by the rules;

(v) reducing the number of activities

covered by the rules; or

(vi) creating waivers for or exemptions

from the rules under certain circumstances; and

(5) prepare and publish written manuals, guides, or

other publications as required by this chapter.

(b) The office shall coordinate with the panel, state

agencies, and the governor's office to accomplish the purposes of

the office.

Sec. 465.0053. REGULATORY ECONOMIC ANALYSIS MANUAL. (a)

The office shall prepare and publish a regulatory economic analysis

manual.

(b) The manual required by Subsection (a) must identify and

describe best practices for state agencies related to:

(1) preparing a local employment impact statement

under Section 2001.022;

(2) conducting a regulatory analysis under Section

2001.0225;

(3) preparing a fiscal note under Section 2001.024;

and

(4) preparing a note regarding public benefits and

costs under Section 2001.024.

(c) The office shall ensure that the manual required by

Subsection (a) is written in plain language that may be easily

understood by the public.

Sec. 465.0054. REGULATORY REDUCTION GUIDE. (a) The office

shall prepare and publish a regulatory reduction guide.

(b) The purpose of the guide required by Subsection (a) is

to assist each state agency to:

(1) meet the goal established by the agency under

Section 465.0052(a)(4); and

(2) document that the agency met the goal described by

Subdivision (1).

(c) The office shall ensure that the guide required by

Subsection (a) is written in plain language that may be easily

understood by the public.

Sec. 465.0055. RULEMAKING AND REGULATORY EFFICIENCY FORUM.

The office shall establish a forum for interested persons described

by Section 2001.021(d) to assist the office and the panel to

accomplish the purposes of the office and panel.

SUBCHAPTER C. TEXAS REGULATORY EFFICIENCY ADVISORY PANEL

Sec. 465.0101. ESTABLISHMENT OF PANEL. The Texas

Regulatory Efficiency Advisory Panel is established as an advisory

panel to the governor's office, including the office established

under this chapter.

Sec. 465.0102. ADMINISTRATIVE ATTACHMENT AND SUPPORT. (a)

The panel is administratively attached to the office of the

governor.

(b) The office established under this chapter shall provide

staff, facilities, and other administrative support necessary to

assist the panel in performing the panel's duties under this

chapter.

Sec. 465.0103. COMPOSITION OF PANEL. (a) The panel is

composed of the following seven members appointed by the governor:

(1) one member who represents regulated small

businesses;

(2) one member who represents regulated large

businesses;

(3) one member who holds an occupational license

issued by a state agency;

(4) one member employed by an institution of higher

education who conducts research at the institution and has

experience addressing issues related to state agency rules;

(5) one member who represents state agencies that

adopt rules; and

(6) two members of the public.

(b) In making appointments under Subsection (a), the

governor shall give priority to individuals with expertise in state

agency rules and the rulemaking process, including expertise in

regulatory research, compliance, cost, and impact analysis, and

related law and procedure.

Sec. 465.0104. TERMS; VACANCY. (a) Members of the panel

serve two-year terms.

(b) A vacancy on the panel shall be filled in the same manner

and is subject to the same qualifications as the original

appointment. A panel member appointed to fill a vacancy on the

panel shall serve the remainder of the unexpired term.

Sec. 465.0105. REIMBURSEMENT FOR EXPENSES. Members of the

panel serve without compensation but are entitled to reimbursement

for actual and necessary expenses incurred in performing official

duties under this chapter.

Sec. 465.0106. PRESIDING OFFICER. The governor shall

appoint one member of the panel to serve as the panel's presiding

officer.

Sec. 465.0107. MEETINGS. The panel shall meet at the call

of the panel's presiding officer.

Sec. 465.0108. PURPOSES OF PANEL. The panel is established

to:

(1) use the knowledge and expertise of regulated

persons, small and large businesses, institutions of higher

education, and state agencies to identify and expand opportunities

for implementing efficiencies in:

(A) the process by which state agencies adopt

rules;

(B) the regulatory review process; and

(C) the manner in which contested cases are

conducted; and

(2) assist the office and state agencies in

identifying:

(A) unnecessary and ineffective rules;

(B) the effect and cost to this state and

regulated persons of the agencies' rules and proposed rules; and

(C) opportunities to repeal or amend rules to

provide effective protection to the public with the least cost and

inconvenience to regulated persons.

Sec. 465.0109. APPLICATION OF OTHER LAW. Chapter 2110 does

not apply to the panel.

SUBCHAPTER D. REPORTING REQUIREMENT

Sec. 465.0151. BIENNIAL REPORT. (a) Not later than

December 1 of each even-numbered year, the office shall prepare and

submit to the governor and the Legislative Budget Board a written

report that describes:

(1) the activities undertaken by the office during the

two-year period preceding the date of the report to accomplish the

purposes of the office;

(2) any findings and recommendations of the office

related to the office's purposes under this chapter; and

(3) any legislative recommendations of the office to

accomplish and further the findings and recommendations described

by Subdivision (2).

(b) The panel may assist the office in preparing the report

required by Subsection (a).

SECTION 3. Section 2001.007, Government Code, is amended by

adding Subsection (e) to read as follows:

(e) The secretary of state, Department of Information

Resources, and Texas Regulatory Efficiency Office shall jointly

coordinate with each other state agency to establish an Internet

website that allows a person to search the rules and related

information made available by state agencies under Subsection (a)

by:

(1) the general topic of the rule;

(2) the type of activity or business regulated by the

rule; and

(3) if applicable, the North American Industry

Classification System (NAICS) sector code for the type of activity

or business regulated by the rule.

SECTION 4. Section 2001.024, Government Code, is amended by

amending Subsection (a) and adding Subsection (e) to read as

follows:

(a) The notice of a proposed rule must include:

(1) a brief explanation of the proposed rule;

(2) the text of the proposed rule, except any portion

omitted under Section 2002.014, prepared in a manner to indicate

any words to be added or deleted from the current text and, to the

extent practicable, written in plain language ;

(3) a statement of the statutory or other authority

under which the rule is proposed to be adopted, including:

(A) a concise explanation of the particular

statutory or other provisions under which the rule is proposed;

(B) the section or article of the code affected;

(C) if applicable, the bill number for the

legislation that enacted the statutory authority under which the

rule is proposed to be adopted if the legislation was enacted during

the four-year period preceding the date notice of the proposed rule

is given; and

(D) a certification that the proposed rule has

been reviewed by legal counsel and found to be within the state

agency's authority to adopt;

(4) a fiscal note showing the name and title of the

officer or employee responsible for preparing or approving the note

and stating for each year of the first five years that the rule will

be in effect:

(A) the additional estimated cost to the state

and to local governments expected as a result of enforcing or

administering the rule;

(B) the estimated reductions in costs to the

state and to local governments as a result of enforcing or

administering the rule;

(C) the estimated loss or increase in revenue to

the state or to local governments as a result of enforcing or

administering the rule; and

(D) if applicable, that enforcing or

administering the rule does not have foreseeable implications

relating to cost or revenues of the state or local governments;

(5) a note about public benefits and costs showing the

name and title of the officer or employee responsible for preparing

or approving the note and stating for each year of the first five

years that the rule will be in effect:

(A) the public benefits expected as a result of

adoption of the proposed rule; and

(B) the probable economic cost to persons

required to comply with the rule;

(6) the local employment impact statement prepared

under Section 2001.022, if required;

(7) a request for comments on the proposed rule from

any interested person; [ and ]

(8) a request for information related to the cost,

benefit, or effect of the proposed rule, including any applicable

data, research, or analysis, from any person required to comply

with the proposed rule or any other interested person; and

(9) any other statement required by law.

(e) For purposes of Subsection (a)(2), the text of a

proposed rule is written in plain language if the text is written

using language the general public, including individuals with

limited English proficiency, can readily understand because the

language is concise and well-organized.

SECTION 5. Sections 2001.035(a) and (b), Government Code,

are amended to read as follows:

(a) A rule is voidable unless a state agency adopts it in

substantial compliance with Sections 2001.022 [ 2001.0225 ] through

2001.034.

(b) A person must initiate a proceeding to contest a rule on

the ground of noncompliance with the procedural requirements of

Sections 2001.022 [ 2001.0225 ] through 2001.034 not later than the

second anniversary of the effective date of the rule.

SECTION 6. Section 2001.040, Government Code, is amended to

read as follows:

Sec. 2001.040. SCOPE AND EFFECT OF ORDER INVALIDATING

AGENCY RULE. If a court finds that an agency has not substantially

complied with one or more procedural requirements of Sections

2001.022 [ 2001.0225 ] through 2001.034, the court may remand the

rule, or a portion of the rule, to the agency and, if it does so

remand, shall provide a reasonable time for the agency to either

revise or readopt the rule through established procedure. During

the remand period, the rule shall remain effective unless the court

finds good cause to invalidate the rule or a portion of the rule,

effective as of the date of the court's order.

SECTION 7. Subchapter B, Chapter 2001, Government Code, is

amended by adding Section 2001.042 to read as follows:

Sec. 2001.042. JUDICIAL REVIEW OF STATE AGENCY LEGAL

DETERMINATION REGARDING LAWS AND RULES. Notwithstanding any other

law, in a judicial proceeding in this state, including an action

subject to Section 2001.038, a court is not required to give

deference to a state agency's legal determination regarding the

construction, validity, or applicability of the law or a rule

adopted by the state agency responsible for the rule's

administration, implementation, or other enforcement. This

section does not prohibit a court from giving consideration to a

legal determination made by a state agency that is reasonable and

does not conflict with the plain language of the statute.

SECTION 8. Subchapter G, Chapter 2001, Government Code, is

amended by adding Section 2001.1721 to read as follows:

Sec. 2001.1721. JUDICIAL REVIEW OF QUESTION OF LAW. (a)

Except as provided by Subsection (b), in any matter brought under

this subchapter, the reviewing court shall review all questions of

law de novo, including the interpretation of constitutional or

statutory provisions or rules adopted by a state agency, without

giving deference to any legal determination by a state agency.

(b) Subsection (a) does not prohibit a reviewing court from

giving consideration to a legal determination made by a state

agency that is reasonable and does not conflict with the plain

language of the statute.

(c) Notwithstanding any other law, this section applies in

an action for judicial review of a contested case authorized by law

and other court actions authorized by law that involve a state

agency's legal determination of a constitutional or statutory

provision or a rule adopted by the state agency.

(d) A law may not exempt an action from the application of

this section except by specific reference to this section.

SECTION 9. Sections 2001.022(c) and 2001.0221(e),

Government Code, are repealed.

SECTION 10. (a) As soon as practicable after the effective

date of this Act, but not later than January 1, 2026, the governor

shall appoint the members of the Texas Regulatory Efficiency

Advisory Panel as required by Section 465.0103, Government Code, as

added by this Act.

(b) Not later than the 60th day after the date the governor

appoints the members of the Texas Regulatory Efficiency Advisory

Panel under Subsection (a) of this section, the panel shall hold its

first meeting.

SECTION 11. Sections 2001.024, 2001.035, and 2001.040,

Government Code, as amended by this Act, and the repeal by this Act

of Sections 2001.022(c) and 2001.0221(e), Government Code, apply

only to a rule proposed by a state agency on or after the effective

date of this Act. A rule proposed before the effective date of this

Act is governed by the law in effect on the date the rule was

proposed, and the former law is continued in effect for that

purpose.

SECTION 12. Sections 2001.042 and 2001.1721, Government

Code, as added by this Act, apply only to a petition for judicial

review, action for declaratory judgment, contested case, or other

proceeding initiated on or after the effective date of this Act. A

petition for judicial review, action for declaratory judgment,

contested case, or other proceeding initiated before the effective

date of this Act is governed by the law in effect on the date the

proceeding was initiated, and the former law is continued in effect

for that purpose.

SECTION 13. This Act takes effect immediately if it

receives a vote of two-thirds of all the members elected to each

house, as provided by Section 39, Article III, Texas Constitution.

If this Act does not receive the vote necessary for immediate

effect, this Act takes effect September 1, 2025.