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Texas House Bill HB10

Texas 2025 - 89th Regular

Texas House Bill HB10 Compare Versions

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1-89R20734 CS-F
2- By: Capriglione, Hunter, Leach, Bhojani, H.B. No. 10
3- Curry, et al.
4- Substitute the following for H.B. No. 10:
5- By: Bhojani C.S.H.B. No. 10
1+89R15035 CS-F
2+ By: Capriglione H.B. No. 10
3+
4+
65
76
87 A BILL TO BE ENTITLED
98 AN ACT
109 relating to reforming the procedure by which state agencies adopt
1110 rules and impose regulatory requirements and the deference given to
1211 the interpretation of laws and rules by state agencies in certain
1312 judicial proceedings.
1413 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1514 SECTION 1. This Act may be cited as the Regulatory Reform
1615 and Efficiency Act.
1716 SECTION 2. Subtitle E, Title 4, Government Code, is amended
1817 by adding Chapter 465 to read as follows:
1918 CHAPTER 465. REGULATORY AND RULEMAKING EFFICIENCY
2019 SUBCHAPTER A. GENERAL PROVISIONS
2120 Sec. 465.0001. DEFINITIONS. (a) The definitions in
2221 Chapter 2001 apply to this chapter.
2322 (b) In this chapter:
2423 (1) "Institution of higher education" has the meaning
2524 assigned by Section 61.003, Education Code.
2625 (2) "Office" means the Texas Regulatory Efficiency
2726 Office.
2827 (3) "Panel" means the Texas Regulatory Efficiency
2928 Advisory Panel.
29+ Sec. 465.0002. APPLICATION OF SUNSET ACT TO OFFICE AND
30+ PANEL. (a) The Texas Regulatory Efficiency Office and the Texas
31+ Regulatory Efficiency Advisory Panel are subject to Chapter 325
32+ (Texas Sunset Act).
33+ (b) Unless continued in existence as provided by Chapter 325
34+ (Texas Sunset Act), the office and panel are abolished September 1,
35+ 2037.
3036 SUBCHAPTER B. TEXAS REGULATORY EFFICIENCY OFFICE
3137 Sec. 465.0051. ESTABLISHMENT OF OFFICE. The Texas
3238 Regulatory Efficiency Office is established as an office within the
3339 office of the governor.
3440 Sec. 465.0052. PURPOSES OF OFFICE. (a) The office is
3541 established to:
3642 (1) identify and expand opportunities for
3743 implementing efficiencies in:
3844 (A) the process by which state agencies adopt
3945 rules;
4046 (B) the regulatory review process; and
41- (C) the processes by which contested cases are
47+ (C) the manner in which contested cases are
4248 conducted;
4349 (2) assist state agencies in identifying:
4450 (A) unnecessary and ineffective rules;
4551 (B) the effect and cost to this state and
4652 regulated persons of the agencies' rules and proposed rules; and
4753 (C) opportunities to repeal or amend rules to
4854 provide effective protection to the public with the least cost and
4955 inconvenience to regulated persons;
5056 (3) coordinate with the secretary of state, the
5157 Department of Information Resources, and other state agencies in
5258 the secretary of state's efforts under Section 2001.007 to:
5359 (A) improve public access to information
5460 regarding state agency rules, forms, and filings; and
5561 (B) create an interactive Internet website for
5662 use by the public to search and obtain information regarding rules,
5763 forms, and filings applicable to specific regulated occupations,
5864 industries, professions, and activities;
59- (4) coordinate with state agencies to reduce rules or
60- other regulatory requirements, including by:
65+ (4) establish a goal for each state agency to reduce
66+ rules or other regulatory requirements, including by:
6167 (A) eliminating unnecessary or ineffective rules
6268 or other regulatory requirements; and
6369 (B) reducing the inefficiencies resulting from
6470 rules or other regulatory requirements adopted by the agency by:
65- (i) reducing required training hours while
66- protecting the health and safety of the residents of this state;
71+ (i) reducing required training hours;
6772 (ii) reducing the number of forms a
6873 regulated person is required to complete;
6974 (iii) reducing the amount of information
7075 required by forms that a regulated person is required to complete;
7176 (iv) reducing the amount of or eliminating
7277 fees imposed by the rules;
7378 (v) reducing the number of activities
7479 covered by the rules; or
7580 (vi) creating waivers for or exemptions
7681 from the rules under certain circumstances; and
7782 (5) prepare and publish written manuals, guides, or
7883 other publications as required by this chapter.
7984 (b) The office shall coordinate with the panel, state
80- agencies, and the governor's office, as applicable, to accomplish
81- the purposes of the office.
85+ agencies, and the governor's office to accomplish the purposes of
86+ the office.
8287 Sec. 465.0053. REGULATORY ECONOMIC ANALYSIS MANUAL. (a)
8388 The office shall prepare and publish a regulatory economic analysis
8489 manual.
8590 (b) The manual required by Subsection (a) must identify and
8691 describe best practices for state agencies related to:
8792 (1) preparing a local employment impact statement
8893 under Section 2001.022;
8994 (2) conducting a regulatory analysis under Section
9095 2001.0225;
9196 (3) preparing a fiscal note under Section 2001.024;
97+ and
9298 (4) preparing a note regarding public benefits and
93- costs under Section 2001.024; and
94- (5) preparing an economic impact statement under
95- Section 2006.002.
99+ costs under Section 2001.024.
96100 (c) The office shall ensure that the manual required by
97101 Subsection (a) is written in plain language that may be easily
98102 understood by the public.
99103 Sec. 465.0054. REGULATORY REDUCTION GUIDE. (a) The office
100104 shall prepare and publish a regulatory reduction guide.
101105 (b) The purpose of the guide required by Subsection (a) is
102106 to assist each state agency to:
103- (1) reduce rules and other regulatory requirements
104- under Section 465.0052(a)(4); and
105- (2) document the agency's results under Subdivision
106- (1).
107+ (1) meet the goal established by the agency under
108+ Section 465.0052(a)(4); and
109+ (2) document that the agency met the goal described by
110+ Subdivision (1).
107111 (c) The office shall ensure that the guide required by
108112 Subsection (a) is written in plain language that may be easily
109113 understood by the public.
110114 Sec. 465.0055. RULEMAKING AND REGULATORY EFFICIENCY FORUM.
111- The office may establish, as needed, a forum for interested persons
112- described by Section 2001.021(d) to assist the office and the panel
113- to accomplish the purposes of the office and panel.
115+ The office shall establish a forum for interested persons described
116+ by Section 2001.021(d) to assist the office and the panel to
117+ accomplish the purposes of the office and panel.
114118 SUBCHAPTER C. TEXAS REGULATORY EFFICIENCY ADVISORY PANEL
115- Sec. 465.0101. ESTABLISHMENT OF ADVISORY PANEL. The office
116- may establish, as needed, the Texas Regulatory Efficiency Advisory
117- Panel to serve as an advisory panel to the governor's office,
118- including the office established under this chapter.
119- Sec. 465.0102. ADMINISTRATIVE SUPPORT. The office
120- established under this chapter shall provide staff, facilities, and
121- other administrative support necessary to assist the panel in
122- performing the panel's duties under this chapter.
123- Sec. 465.0103. COMPOSITION OF PANEL. In designating
124- individuals to serve on the panel, the governor may give priority to
125- individuals with expertise in state agency rules and the rulemaking
126- process, including expertise in regulatory research, compliance,
127- cost, and impact analysis, and related law and procedure.
128- Sec. 465.0104. REIMBURSEMENT FOR EXPENSES. Members of the
129- panel serve without compensation but may, at the discretion of the
130- office, be reimbursed for actual and necessary expenses incurred in
131- performing official duties under this chapter.
132- Sec. 465.0105. PRESIDING OFFICER. The governor may
133- designate one member of the panel to serve as the panel's presiding
119+ Sec. 465.0101. ESTABLISHMENT OF PANEL. The Texas
120+ Regulatory Efficiency Advisory Panel is established as an advisory
121+ panel to the governor's office, including the office established
122+ under this chapter.
123+ Sec. 465.0102. ADMINISTRATIVE ATTACHMENT AND SUPPORT. (a)
124+ The panel is administratively attached to the office of the
125+ governor.
126+ (b) The office established under this chapter shall provide
127+ staff, facilities, and other administrative support necessary to
128+ assist the panel in performing the panel's duties under this
129+ chapter.
130+ Sec. 465.0103. COMPOSITION OF PANEL. (a) The panel is
131+ composed of the following seven members appointed by the governor:
132+ (1) one member who represents regulated small
133+ businesses;
134+ (2) one member who represents regulated large
135+ businesses;
136+ (3) one member who holds an occupational license
137+ issued by a state agency;
138+ (4) one member employed by an institution of higher
139+ education who conducts research at the institution and has
140+ experience addressing issues related to state agency rules;
141+ (5) one member who represents state agencies that
142+ adopt rules; and
143+ (6) two members of the public.
144+ (b) In making appointments under Subsection (a), the
145+ governor shall give priority to individuals with expertise in state
146+ agency rules and the rulemaking process, including expertise in
147+ regulatory research, compliance, cost, and impact analysis, and
148+ related law and procedure.
149+ Sec. 465.0104. TERMS; VACANCY. (a) Members of the panel
150+ serve two-year terms.
151+ (b) A vacancy on the panel shall be filled in the same manner
152+ and is subject to the same qualifications as the original
153+ appointment. A panel member appointed to fill a vacancy on the
154+ panel shall serve the remainder of the unexpired term.
155+ Sec. 465.0105. REIMBURSEMENT FOR EXPENSES. Members of the
156+ panel serve without compensation but are entitled to reimbursement
157+ for actual and necessary expenses incurred in performing official
158+ duties under this chapter.
159+ Sec. 465.0106. PRESIDING OFFICER. The governor shall
160+ appoint one member of the panel to serve as the panel's presiding
134161 officer.
135- Sec. 465.0106. MEETINGS. The panel shall meet at the call
162+ Sec. 465.0107. MEETINGS. The panel shall meet at the call
136163 of the panel's presiding officer.
137- Sec. 465.0107. PURPOSES OF PANEL. The panel is established
164+ Sec. 465.0108. PURPOSES OF PANEL. The panel is established
138165 to:
139166 (1) use the knowledge and expertise of regulated
140167 persons, small and large businesses, institutions of higher
141168 education, and state agencies to identify and expand opportunities
142169 for implementing efficiencies in:
143170 (A) the process by which state agencies adopt
144171 rules;
145172 (B) the regulatory review process; and
146- (C) the processes by which contested cases are
173+ (C) the manner in which contested cases are
147174 conducted; and
148175 (2) assist the office and state agencies in
149176 identifying:
150177 (A) unnecessary and ineffective rules;
151178 (B) the effect and cost to this state and
152179 regulated persons of the agencies' rules and proposed rules; and
153180 (C) opportunities to repeal or amend rules to
154181 provide effective protection to the public with the least cost and
155182 inconvenience to regulated persons.
156- Sec. 465.0108. APPLICATION OF OTHER LAW. Chapter 2110 does
183+ Sec. 465.0109. APPLICATION OF OTHER LAW. Chapter 2110 does
157184 not apply to the panel.
158185 SUBCHAPTER D. REPORTING REQUIREMENT
159186 Sec. 465.0151. BIENNIAL REPORT. (a) Not later than
160187 December 1 of each even-numbered year, the office shall prepare and
161- submit to the governor, lieutenant governor, speaker of the house
162- of representatives, and Legislative Budget Board a written report
163- that describes:
188+ submit to the governor and the Legislative Budget Board a written
189+ report that describes:
164190 (1) the activities undertaken by the office during the
165191 two-year period preceding the date of the report to accomplish the
166- purposes of the office; and
167- (2) any legislative recommendations of the office to
168- accomplish and further the activities described by Subdivision (1).
192+ purposes of the office;
193+ (2) any findings and recommendations of the office
194+ related to the office's purposes under this chapter; and
195+ (3) any legislative recommendations of the office to
196+ accomplish and further the findings and recommendations described
197+ by Subdivision (2).
169198 (b) The panel may assist the office in preparing the report
170199 required by Subsection (a).
171200 SECTION 3. Section 2001.007, Government Code, is amended by
172201 adding Subsection (e) to read as follows:
173202 (e) The secretary of state, Department of Information
174203 Resources, and Texas Regulatory Efficiency Office shall jointly
175204 coordinate with each other state agency to establish an Internet
176205 website that allows a person to search the rules and related
177206 information made available by state agencies under Subsection (a)
178207 by:
179208 (1) the general topic of the rule;
180209 (2) the type of activity or business regulated by the
181210 rule; and
182211 (3) if applicable, the North American Industry
183212 Classification System (NAICS) sector code for the type of activity
184213 or business regulated by the rule.
185214 SECTION 4. Section 2001.024, Government Code, is amended by
186215 amending Subsection (a) and adding Subsection (e) to read as
187216 follows:
188217 (a) The notice of a proposed rule must include:
189218 (1) a brief explanation of the proposed rule;
190219 (2) the text of the proposed rule, except any portion
191220 omitted under Section 2002.014, prepared in a manner to indicate
192221 any words to be added or deleted from the current text and, to the
193222 extent practicable, written in plain language;
194223 (3) a statement of the statutory or other authority
195224 under which the rule is proposed to be adopted, including:
196225 (A) a concise explanation of the particular
197226 statutory or other provisions under which the rule is proposed;
198227 (B) the section or article of the code affected;
199228 (C) if applicable, the bill number for the
200229 legislation that enacted the statutory authority under which the
201230 rule is proposed to be adopted if the legislation was enacted during
202231 the four-year period preceding the date notice of the proposed rule
203232 is given; and
204233 (D) a certification that the proposed rule has
205234 been reviewed by legal counsel and found to be within the state
206235 agency's authority to adopt;
207236 (4) a fiscal note showing the name and title of the
208237 officer or employee responsible for preparing or approving the note
209238 and stating for each year of the first five years that the rule will
210239 be in effect:
211240 (A) the additional estimated cost to the state
212241 and to local governments expected as a result of enforcing or
213242 administering the rule;
214243 (B) the estimated reductions in costs to the
215244 state and to local governments as a result of enforcing or
216245 administering the rule;
217246 (C) the estimated loss or increase in revenue to
218247 the state or to local governments as a result of enforcing or
219248 administering the rule; and
220249 (D) if applicable, that enforcing or
221250 administering the rule does not have foreseeable implications
222251 relating to cost or revenues of the state or local governments;
223252 (5) a note about public benefits and costs showing the
224253 name and title of the officer or employee responsible for preparing
225254 or approving the note and stating for each year of the first five
226255 years that the rule will be in effect:
227256 (A) the public benefits expected as a result of
228257 adoption of the proposed rule; and
229258 (B) the probable economic cost to persons
230259 required to comply with the rule;
231260 (6) the local employment impact statement prepared
232261 under Section 2001.022, if required;
233262 (7) a request for comments on the proposed rule from
234263 any interested person; [and]
235264 (8) a request for information related to the cost,
236265 benefit, or effect of the proposed rule, including any applicable
237266 data, research, or analysis, from any person required to comply
238267 with the proposed rule or any other interested person; and
239268 (9) any other statement required by law.
240269 (e) For purposes of Subsection (a)(2), the text of a
241270 proposed rule is written in plain language if the text is written
242271 using language the general public, including individuals with
243272 limited English proficiency, can readily understand because the
244273 language is concise and well-organized.
245274 SECTION 5. Sections 2001.035(a) and (b), Government Code,
246275 are amended to read as follows:
247276 (a) A rule is voidable unless a state agency adopts it in
248277 substantial compliance with Sections 2001.022 [2001.0225] through
249278 2001.034.
250279 (b) A person must initiate a proceeding to contest a rule on
251280 the ground of noncompliance with the procedural requirements of
252281 Sections 2001.022 [2001.0225] through 2001.034 not later than the
253282 second anniversary of the effective date of the rule.
254283 SECTION 6. Section 2001.040, Government Code, is amended to
255284 read as follows:
256285 Sec. 2001.040. SCOPE AND EFFECT OF ORDER INVALIDATING
257286 AGENCY RULE. If a court finds that an agency has not substantially
258287 complied with one or more procedural requirements of Sections
259288 2001.022 [2001.0225] through 2001.034, the court may remand the
260289 rule, or a portion of the rule, to the agency and, if it does so
261290 remand, shall provide a reasonable time for the agency to either
262291 revise or readopt the rule through established procedure. During
263292 the remand period, the rule shall remain effective unless the court
264293 finds good cause to invalidate the rule or a portion of the rule,
265294 effective as of the date of the court's order.
266295 SECTION 7. Subchapter B, Chapter 2001, Government Code, is
267296 amended by adding Section 2001.042 to read as follows:
268297 Sec. 2001.042. JUDICIAL REVIEW OF STATE AGENCY LEGAL
269298 DETERMINATION REGARDING LAWS AND RULES. Notwithstanding any other
270299 law, in a judicial proceeding in this state, including an action
271300 subject to Section 2001.038, a court is not required to give
272301 deference to a state agency's legal determination regarding the
273302 construction, validity, or applicability of the law or a rule
274303 adopted by the state agency responsible for the rule's
275304 administration, implementation, or other enforcement. This
276305 section does not prohibit a court from giving consideration to a
277306 legal determination made by a state agency that is reasonable and
278307 does not conflict with the plain language of the statute.
279308 SECTION 8. Subchapter G, Chapter 2001, Government Code, is
280309 amended by adding Section 2001.1721 to read as follows:
281310 Sec. 2001.1721. JUDICIAL REVIEW OF QUESTION OF LAW. (a)
282311 Except as provided by Subsection (b), in any matter brought under
283312 this subchapter, the reviewing court shall review all questions of
284313 law de novo, including the interpretation of constitutional or
285314 statutory provisions or rules adopted by a state agency, without
286315 giving deference to any legal determination by a state agency.
287316 (b) Subsection (a) does not prohibit a reviewing court from
288317 giving consideration to a legal determination made by a state
289318 agency that is reasonable and does not conflict with the plain
290319 language of the statute.
291320 (c) Notwithstanding any other law, this section applies in
292321 an action for judicial review of a contested case authorized by law
293322 and other court actions authorized by law that involve a state
294323 agency's legal determination of a constitutional or statutory
295324 provision or a rule adopted by the state agency.
296325 (d) A law may not exempt an action from the application of
297326 this section except by specific reference to this section.
298327 SECTION 9. Sections 2001.022(c) and 2001.0221(e),
299328 Government Code, are repealed.
300- SECTION 10. Sections 2001.024, 2001.035, and 2001.040,
329+ SECTION 10. (a) As soon as practicable after the effective
330+ date of this Act, but not later than January 1, 2026, the governor
331+ shall appoint the members of the Texas Regulatory Efficiency
332+ Advisory Panel as required by Section 465.0103, Government Code, as
333+ added by this Act.
334+ (b) Not later than the 60th day after the date the governor
335+ appoints the members of the Texas Regulatory Efficiency Advisory
336+ Panel under Subsection (a) of this section, the panel shall hold its
337+ first meeting.
338+ SECTION 11. Sections 2001.024, 2001.035, and 2001.040,
301339 Government Code, as amended by this Act, and the repeal by this Act
302340 of Sections 2001.022(c) and 2001.0221(e), Government Code, apply
303341 only to a rule proposed by a state agency on or after the effective
304342 date of this Act. A rule proposed before the effective date of this
305343 Act is governed by the law in effect on the date the rule was
306344 proposed, and the former law is continued in effect for that
307345 purpose.
308- SECTION 11. Sections 2001.042 and 2001.1721, Government
346+ SECTION 12. Sections 2001.042 and 2001.1721, Government
309347 Code, as added by this Act, apply only to a petition for judicial
310348 review, action for declaratory judgment, contested case, or other
311349 proceeding initiated on or after the effective date of this Act. A
312350 petition for judicial review, action for declaratory judgment,
313351 contested case, or other proceeding initiated before the effective
314352 date of this Act is governed by the law in effect on the date the
315353 proceeding was initiated, and the former law is continued in effect
316354 for that purpose.
317- SECTION 12. The office of the governor, the Department of
318- Information Resources, the Texas Regulatory Efficiency Office, and
319- the secretary of state are required to implement the changes in law
320- made by Chapter 465, Government Code, and Section 2001.007(e),
321- Government Code, as added by this Act, only if the legislature
322- appropriates money specifically for that purpose. If the
323- legislature does not appropriate money specifically for that
324- purpose, the office of the governor, the Department of Information
325- Resources, the Texas Regulatory Efficiency Office, and the
326- secretary of state may, but are not required to, implement those
327- changes in law using other appropriations available for that
328- purpose.
329355 SECTION 13. This Act takes effect immediately if it
330356 receives a vote of two-thirds of all the members elected to each
331357 house, as provided by Section 39, Article III, Texas Constitution.
332358 If this Act does not receive the vote necessary for immediate
333359 effect, this Act takes effect September 1, 2025.