Texas 2025 - 89th Regular

Texas House Bill HB5083 Compare Versions

Only one version of the bill is available at this time.

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1	1	89R15304 JCG-F
2	2	By: Patterson H.B. No. 5083
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the adoption and review of rules by state agencies.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 28.002(m), Education Code, is amended to
12	12	read as follows:
13	13	(m) Section 2001.0395 [2001.039], Government Code, [as
14	14	added by Chapter 1499, Acts of the 76th Legislature, Regular
15	15	Session, 1999,] does not apply to a rule adopted by the State Board
16	16	of Education under Subsection (c) or (d).
17	17	SECTION 2. Subchapter A, Chapter 2001, Government Code, is
18	18	amended by adding Section 2001.008 to read as follows:
19	19	Sec. 2001.008. EXPRESS STATUTORY AUTHORITY FOR RULE OR
20	20	GUIDANCE DOCUMENT REQUIRED. (a) In this section, "guidance
21	21	document" means any letter, opinion, compliance manual, or other
22	22	statement issued by a state agency that explains or interprets one
23	23	or more of the state agency's rules.
24	24	(b) A state agency may not adopt a rule or issue a guidance
25	25	document unless the agency has been granted an express statutory
26	26	delegation of authority to adopt the rule or issue the guidance
27	27	document.
28	28	(c) For purposes of Subsection (b), a state agency does not
29	29	have an express statutory delegation of authority to adopt a rule or
30	30	issue a guidance document solely because the rule or guidance
31	31	document is reasonably related to the purpose of the state agency's
32	32	enabling legislation or to a general statutory power or duty of the
33	33	state agency.
34	34	SECTION 3. Subchapter B, Chapter 2001, Government Code, is
35	35	amended by adding Section 2001.0227 to read as follows:
36	36	Sec. 2001.0227. CERTAIN RULES PROHIBITED BASED ON COSTS OF
37	37	COMPLIANCE; COST-BENEFIT ANALYSES REQUIRED. (a) A state agency
38	38	shall prepare a cost-benefit analysis for each proposed rule as
39	39	provided by this section.
40	40	(b) The cost-benefit analysis must include:
41	41	(1) a cost-benefit analysis estimating for each year
42	42	of the first six years that the rule will be in effect:
43	43	(A) the public benefits expected as a result of
44	44	adoption of the rule; and
45	45	(B) the expected economic costs to persons
46	46	required to comply with the rule;
47	47	(2) an explanation of all assumptions, methods,
48	48	supporting data, and, if any, discount rates used in preparing the
49	49	cost-benefit analysis; and
50	50	(3) a clear statement of the total expected economic
51	51	costs to persons required to comply with the rule and the total
52	52	public benefits expected as a result of the adoption of the rule.
53	53	(c) A state agency may not adopt a proposed rule:
54	54	(1) for which the cost-benefit analysis under
55	55	Subsection (b) states that the total expected economic costs to
56	56	comply with the rule exceed the total public benefits expected as a
57	57	result of the adoption of the proposed rule; or
58	58	(2) if there are alternative methods of regulation
59	59	that could accomplish the legislature's intent in authorizing the
60	60	rule and any statutory purposes provided by the legislature at a
61	61	lower economic cost to persons required to comply with the rule.
62	62	(d) If the proposed rule takes effect and remains in effect
63	63	at least six years, the state agency shall:
64	64	(1) solicit from interested stakeholders data
65	65	regarding the stakeholders' experience and actual economic costs of
66	66	compliance with the rule; and
67	67	(2) conduct a retrospective cost-benefit analysis
68	68	that compares:
69	69	(A) estimates made under Subsection (b)(1)
70	70	regarding the economic costs of compliance; and
71	71	(B) the actual economic costs of compliance based
72	72	on the data provided under Subdivision (1) and any other readily
73	73	available data relevant to this purpose.
74	74	(e) If a state agency uses a discount rate in preparing an
75	75	analysis under Subsection (b) or (d), the state agency shall
76	76	provide:
77	77	(1) a reasoned justification for the use of the
78	78	discount rate; and
79	79	(2) another cost-benefit analysis for the same rule
80	80	that does not include the use of the discount rate.
81	81	(f) A state agency that prepares an analysis under
82	82	Subsection (b) or (d) shall publish on the agency's publicly
83	83	accessible Internet website all documentation and other materials
84	84	used to prepare the analysis in a machine-readable format.
85	85	(g) A reference to an existing rule under this section
86	86	includes any amendments to the rule, and, to the extent feasible,
87	87	the state agency shall prepare the analysis required under
88	88	Subsection (b) based on the terms of the rule as amended.
89	89	SECTION 4. Section 2001.024(a), Government Code, is amended
90	90	to read as follows:
91	91	(a) The notice of a proposed rule must include:
92	92	(1) a brief explanation of the proposed rule;
93	93	(2) the text of the proposed rule, except any portion
94	94	omitted under Section 2002.014, prepared in a manner to indicate
95	95	any words to be added or deleted from the current text;
96	96	(3) a statement of the statutory or other authority
97	97	under which the rule is proposed to be adopted, including:
98	98	(A) a concise explanation of the particular
99	99	statutory or other provisions under which the rule is proposed;
100	100	(B) the section or article of the code affected;
101	101	(C) if applicable, the bill number for the
102	102	legislation that enacted the statutory authority under which the
103	103	rule is proposed to be adopted if the legislation was enacted during
104	104	the four-year period preceding the date notice of the proposed rule
105	105	is given; and
106	106	(D) a certification that the proposed rule has
107	107	been reviewed by legal counsel and found to be within the state
108	108	agency's authority to adopt;
109	109	(4) a fiscal note showing the name and title of the
110	110	officer or employee responsible for preparing or approving the note
111	111	and stating for each year of the first five years that the rule will
112	112	be in effect:
113	113	(A) the additional estimated cost to the state
114	114	and to local governments expected as a result of enforcing or
115	115	administering the rule;
116	116	(B) the estimated reductions in costs to the
117	117	state and to local governments as a result of enforcing or
118	118	administering the rule;
119	119	(C) the estimated loss or increase in revenue to
120	120	the state or to local governments as a result of enforcing or
121	121	administering the rule; and
122	122	(D) if applicable, that enforcing or
123	123	administering the rule does not have foreseeable implications
124	124	relating to cost or revenues of the state or local governments;
125	125	(5) the cost-benefit analysis required under Section
126	126	2001.0227 [a note about public benefits and costs showing the name
127	127	and title of the officer or employee responsible for preparing or
128	128	approving the note and stating for each year of the first five years
129	129	that the rule will be in effect:
130	130	[(A) the public benefits expected as a result of
131	131	adoption of the proposed rule; and
132	132	[(B) the probable economic cost to persons
133	133	required to comply with the rule];
134	134	(6) the local employment impact statement prepared
135	135	under Section 2001.022, if required;
136	136	(7) a request for comments on the proposed rule from
137	137	any interested person; and
138	138	(8) any other statement required by law.
139	139	SECTION 5. Section 2001.033, Government Code, is amended by
140	140	amending Subsection (a) and adding Subsection (c) to read as
141	141	follows:
142	142	(a) A state agency order finally adopting a rule must
143	143	include:
144	144	(1) a reasoned justification for the rule as adopted
145	145	consisting solely of:
146	146	(A) a summary of comments received from parties
147	147	interested in the rule that shows the names of interested groups or
148	148	associations offering comment on the rule and whether they were for
149	149	or against its adoption;
150	150	(B) a summary of the factual basis for the rule as
151	151	adopted which demonstrates a rational connection between the
152	152	factual basis for the rule and the rule as adopted; and
153	153	(C) the reasons why the agency disagrees with
154	154	party submissions and proposals;
155	155	(2) a concise restatement of the particular statutory
156	156	provisions under which the rule is adopted and of how the agency
157	157	interprets the provisions as authorizing or requiring the rule;
158	158	[and]
159	159	(3) a certification that the rule, as adopted, has
160	160	been reviewed by legal counsel and found to be a valid exercise of
161	161	the agency's legal authority; and
162	162	(4) the cost-benefit analysis required under Section
163	163	2001.0227 updated to reflect reasonable public commentary on the
164	164	state agency's calculations of the costs and benefits of the rule or
165	165	a reasoned justification for why the agency did not update the
166	166	cost-benefit analysis based on the public commentary.
167	167	(c) A state agency rule may not be arbitrary or capricious.
168	168	SECTION 6. Section 2001.038, Government Code, is amended by
169	169	adding Subsection (g) to read as follows:
170	170	(g) A respondent subject to an enforcement action by a state
171	171	agency for the violation of a rule may request a declaratory
172	172	judgment from the court finding a rule invalid if the state agency
173	173	lacks express statutory delegation of authority to adopt the rule
174	174	on which the enforcement action is based, including if the state
175	175	agency relies on a guidance document to interpret the rule for
176	176	purposes of the enforcement action. A court shall award a
177	177	respondent that prevails on the ground provided by this subsection
178	178	reasonable attorney's fees and court costs. For purposes of this
179	179	section, "guidance document" has the meaning assigned by Section
180	180	2001.008.
181	181	SECTION 7. Subchapter B, Chapter 2001, Government Code, is
182	182	amended by adding Sections 2001.0395 and 2001.042 to read as
183	183	follows:
184	184	Sec. 2001.0395. EXPIRATION OF RULES. (a) Each state agency
185	185	rule expires on the 12th anniversary of the rule's effective date
186	186	unless the state agency that adopted the rule readopts the rule
187	187	before the rule's expiration date in accordance with this section.
188	188	(b) The expiration date for a readopted rule is the 12th
189	189	anniversary of the readopted rule's effective date.
190	190	(c) The adoption of an amendment to an existing rule does
191	191	not affect the expiration date of the rule under this section unless
192	192	the amendment is made as part of a readoption of the entire rule or
193	193	chapter of the Texas Administrative Code containing the amended
194	194	rule.
195	195	(d) The procedures of this subchapter required for the
196	196	adoption of a rule apply to the readoption of a rule under this
197	197	section, including:
198	198	(1) preparing a cost-benefit analysis under Section
199	199	2001.0227(b);
200	200	(2) providing opportunity for public comment under
201	201	Section 2001.029;
202	202	(3) responding to substantive public comments, as
203	203	required under Section 2001.033(a)(1)(C); and
204	204	(4) providing an updated cost-benefit analysis under
205	205	Section 2001.033(a)(4).
206	206	(e) In readopting a rule under this section, a state agency
207	207	must also:
208	208	(1) provide an assessment of whether the reasons for
209	209	initially adopting the rule continue to exist;
210	210	(2) provide an assessment of whether the rule is
211	211	obsolete, unnecessary, or duplicative or conflicts with other
212	212	rules;
213	213	(3) consider public comments that provide data and
214	214	information on the actual economic costs to persons required to
215	215	comply with the rule;
216	216	(4) to the fullest extent practicable, base estimates
217	217	on expected economic costs to persons required to comply with the
218	218	rule on data and information described by Section 2001.0227(d)(1);
219	219	and
220	220	(5) publish all notices, analyses, and responses to
221	221	public comments on the state agency's publicly accessible Internet
222	222	website.
223	223	(f) Each state agency shall with respect to the state
224	224	agency's rules:
225	225	(1) publish on the state agency's publicly accessible
226	226	Internet website the expiration date for each rule; and
227	227	(2) make the expiration date of each rule available
228	228	through an application programming interface that allows automated
229	229	access and monitoring of the rules' expiration dates.
230	230	(g) The secretary of state shall include a rule's expiration
231	231	date in the online publication of the Texas Administrative Code in a
232	232	standardized metadata field that accompanies each section of the
233	233	code.
234	234	(h) Notwithstanding any other provision of this section, a
235	235	rule does not expire under this section if the governor in writing
236	236	exempts a rule from the application of this section. On the written
237	237	request from a state agency, the governor shall exempt a rule that:
238	238	(1) is necessary:
239	239	(A) to comply with federal law; or
240	240	(B) because federal funding is conditioned on the
241	241	rule remaining in effect; or
242	242	(2) is authorized or required by the constitution.
243	243	(i) A state agency that administers a rule exempted under
244	244	Subsection (h) shall every 12 years after the date of the exemption
245	245	consider less burdensome alternatives to the rule, solicit public
246	246	commentary on those potential alternatives, and in determining
247	247	whether to adopt less burdensome alternatives, calculate the
248	248	expected economic costs to persons required to comply with the rule
249	249	based on data and information provided by persons subject to the
250	250	rule and bearing those costs.
251	251	(j) On written request by a state agency, the governor may
252	252	extend a rule's expiration date under this section for a period not
253	253	to exceed one year following the date on which the extension is
254	254	granted. A written request under this subsection to extend a rule's
255	255	expiration date must:
256	256	(1) explain the reason the state agency cannot
257	257	complete the readoption of the rule under this section before the
258	258	rule's expiration date; and
259	259	(2) describe the harm to the public's health, safety,
260	260	or welfare that would result if the rule expired.
261	261	(k) Any extension granted under Subsection (j) must be
262	262	accompanied by findings affirming the conditions described by
263	263	Subsections (j)(1) and (2).
264	264	Sec. 2001.042. CERTAIN ENFORCEMENT ACTIONS INVALID
265	265	REGARDLESS OF COMMENCEMENT DATE. An enforcement action brought by
266	266	a state agency shall be dismissed if the enforcement action is based
267	267	on the violation of a rule that expired, regardless of whether the
268	268	enforcement action commenced before the date the rule expired.
269	269	SECTION 8. Section 801.022(e), Occupations Code, is amended
270	270	to read as follows:
271	271	(e) Not later than December 31, 2026, the department shall
272	272	conduct a review under former Section 2001.039, Government Code, of
273	273	each rule under 22 T.A.C. Part 24. In conducting the review under
274	274	this subsection, the department shall ensure that license holders
275	275	and the public have a meaningful opportunity to provide input and
276	276	recommend changes to the rules.
277	277	SECTION 9. Section 2001.039, Government Code, is repealed.
278	278	SECTION 10. (a) Notwithstanding Section 2001.0395,
279	279	Government Code, as added by this Act, a state agency shall assign
280	280	the state agency's rules that exist on the effective date of this
281	281	section eight different expiration dates for the purpose of
282	282	staggering the expiration dates of the rules and implementing that
283	283	section.
284	284	(b) An expiration date assigned to a rule under this section
285	285	may not be later than January 1, 2040.
286	286	(c) Not later than December 1, 2025, each state agency shall
287	287	report to the governor the expiration dates assigned under this
288	288	section.
289	289	(d) The governor shall publish on the office's publicly
290	290	accessible Internet website a schedule of all the expiration dates
291	291	assigned under this section.
292	292	(e) This section takes effect September 1, 2025.
293	293	SECTION 11. The changes in law made by this Act to
294	294	Subchapter B, Chapter 2001, Government Code, apply only to a
295	295	proposed state agency rule for which notice is filed with the
296	296	secretary of state under Section 2001.023, Government Code, on or
297	297	after the effective date of this Act.
298	298	SECTION 12. Except as otherwise provided by this Act, this
299	299	Act takes effect January 1, 2026.