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.