Hughes Bill Builds New Office, Seven-Member Panel To Cut Rules

The text as introduced · 1,544 words

89R9168 CS-F

By: Hughes
S.B. No. 943

A BILL TO BE ENTITLED

AN ACT

relating to the establishment and duties of the Texas Regulatory

Efficiency Office and the Texas Regulatory Efficiency Advisory

Panel.

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

SECTION 1. 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 and the legislature.

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 2. 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 3. (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 4. 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.