Texas 2025 - 89th Regular

Texas Senate Bill SB14 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 14
	1	+	By: King, et al. S.B. No. 14
	2	+	(Capriglione, Hunter, Leach, Bhojani, Curry, et al.)
2	3
3	4
4	5
5	6
	7	+	A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to reforming the procedure by which state agencies adopt
8	10		rules and impose regulatory requirements and the deference given to
9	11		the interpretation of laws and rules by state agencies in certain
10	12		judicial proceedings.
11	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	14		SECTION 1. This Act may be cited as the Regulatory Reform
13	15		and Efficiency Act.
14	16		SECTION 2. Subtitle E, Title 4, Government Code, is amended
15	17		by adding Chapter 465 to read as follows:
16	18		CHAPTER 465. REGULATORY AND RULEMAKING EFFICIENCY
17	19		SUBCHAPTER A. GENERAL PROVISIONS
18	20		Sec. 465.0001. DEFINITIONS. (a) The definitions in
19	21		Chapter 2001 apply to this chapter.
20	22		(b) In this chapter:
21	23		(1) "Institution of higher education" has the meaning
22	24		assigned by Section 61.003, Education Code.
23	25		(2) "Office" means the Texas Regulatory Efficiency
24	26		Office.
25	27		(3) "Panel" means the Texas Regulatory Efficiency
26	28		Advisory Panel.
27	29		SUBCHAPTER B. TEXAS REGULATORY EFFICIENCY OFFICE
28	30		Sec. 465.0051. ESTABLISHMENT OF OFFICE. The Texas
29	31		Regulatory Efficiency Office is established as an office within the
30	32		office of the governor.
31	33		Sec. 465.0052. PURPOSES OF OFFICE. (a) The office is
32	34		established to:
33	35		(1) identify and expand opportunities for
34	36		implementing efficiencies in:
35	37		(A) the process by which state agencies adopt
36	38		rules;
37	39		(B) the regulatory review process; and
38	40		(C) the processes by which contested cases are
39	41		conducted;
40	42		(2) assist state agencies in identifying:
41	43		(A) unnecessary and ineffective rules;
42	44		(B) the effect and cost to this state and
43	45		regulated persons of the agencies' rules and proposed rules; and
44	46		(C) opportunities to repeal or amend rules to
45	47		provide effective protection to the public with the least cost and
46	48		inconvenience to regulated persons;
47	49		(3) coordinate with the secretary of state, the
48	50		Department of Information Resources, and other state agencies in
49	51		the secretary of state's efforts under Section 2001.007 to:
50	52		(A) improve public access to information
51	53		regarding state agency rules, forms, and filings; and
52	54		(B) create an interactive Internet website for
53	55		use by the public to search and obtain information regarding rules,
54	56		forms, and filings applicable to specific regulated occupations,
55	57		industries, professions, and activities;
56	58		(4) coordinate with state agencies to reduce rules or
57	59		other regulatory requirements, including by:
58	60		(A) eliminating unnecessary or ineffective rules
59	61		or other regulatory requirements; and
60	62		(B) reducing the inefficiencies resulting from
61	63		rules or other regulatory requirements adopted by the agency by:
62	64		(i) reducing required training hours while
63	65		protecting the health and safety of the residents of this state;
64	66		(ii) reducing the number of forms a
65	67		regulated person is required to complete;
66	68		(iii) reducing the amount of information
67	69		required by forms that a regulated person is required to complete;
68	70		(iv) reducing the amount of or eliminating
69	71		fees imposed by the rules;
70	72		(v) reducing the number of activities
71	73		covered by the rules; or
72	74		(vi) creating waivers for or exemptions
73	75		from the rules under certain circumstances; and
74	76		(5) prepare and publish written manuals, guides, or
75	77		other publications as required by this chapter.
76	78		(b) The office shall coordinate with the panel, state
77	79		agencies, and the governor's office, as applicable, to accomplish
78	80		the purposes of the office.
79	81		(c) Notwithstanding any other provision of this section,
80	82		the office may not recommend the repeal of a rule the purpose of
81	83		which is to inform members of the public about the rulemaking
82	84		process or facilitate participation in that process by members of
83	85		the public.
84	86		Sec. 465.0053. REGULATORY ECONOMIC ANALYSIS MANUAL. (a)
85	87		The office shall prepare and publish a regulatory economic analysis
86	88		manual.
87	89		(b) The manual required by Subsection (a) must identify and
88	90		describe best practices for state agencies related to:
89	91		(1) preparing a local employment impact statement
90	92		under Section 2001.022;
91	93		(2) conducting a regulatory analysis under Section
92	94		2001.0225;
93	95		(3) preparing a fiscal note under Section 2001.024;
94	96		(4) preparing a note regarding public benefits and
95	97		costs under Section 2001.024; and
96	98		(5) preparing an economic impact statement under
97	99		Section 2006.002.
98	100		(c) The office shall ensure that the manual required by
99	101		Subsection (a) is written in plain language that may be easily
100	102		understood by the public.
101	103		Sec. 465.0054. REGULATORY REDUCTION GUIDE. (a) The office
102	104		shall prepare and publish a regulatory reduction guide.
103	105		(b) The purpose of the guide required by Subsection (a) is
104	106		to assist each state agency to:
105	107		(1) reduce rules and other regulatory requirements
106	108		under Section 465.0052(a)(4); and
107	109		(2) document the agency's results under Subdivision
108	110		(1).
109	111		(c) The office shall ensure that the guide required by
110	112		Subsection (a) is written in plain language that may be easily
111	113		understood by the public.
112	114		Sec. 465.0055. RULEMAKING AND REGULATORY EFFICIENCY FORUM.
113	115		The office may establish, as needed, a forum for interested persons
114	116		described by Section 2001.021(d) to assist the office and the panel
115	117		to accomplish the purposes of the office and panel.
116	118		SUBCHAPTER C. TEXAS REGULATORY EFFICIENCY ADVISORY PANEL
117	119		Sec. 465.0101. ESTABLISHMENT OF ADVISORY PANEL. The office
118	120		may establish, as needed, the Texas Regulatory Efficiency Advisory
119	121		Panel to serve as an advisory panel to the governor's office,
120	122		including the office established under this chapter.
121	123		Sec. 465.0102. ADMINISTRATIVE SUPPORT. The office
122	124		established under this chapter shall provide staff, facilities, and
123	125		other administrative support necessary to assist the panel in
124	126		performing the panel's duties under this chapter.
125	127		Sec. 465.0103. COMPOSITION OF PANEL. In designating
126	128		individuals to serve on the panel, the governor may give priority to
127	129		individuals with expertise in state agency rules and the rulemaking
128	130		process, including expertise in regulatory research, compliance,
129	131		cost, and impact analysis, and related law and procedure.
130	132		Sec. 465.0104. REIMBURSEMENT FOR EXPENSES. Members of the
131	133		panel serve without compensation but may, at the discretion of the
132	134		office, be reimbursed for actual and necessary expenses incurred in
133	135		performing official duties under this chapter.
134	136		Sec. 465.0105. PRESIDING OFFICER. The governor may
135	137		designate one member of the panel to serve as the panel's presiding
136	138		officer.
137	139		Sec. 465.0106. MEETINGS. The panel shall meet at the call
138	140		of the panel's presiding officer.
139	141		Sec. 465.0107. PURPOSES OF PANEL. The panel is established
140	142		to:
141	143		(1) use the knowledge and expertise of regulated
142	144		persons, small and large businesses, institutions of higher
143	145		education, and state agencies to identify and expand opportunities
144	146		for implementing efficiencies in:
145	147		(A) the process by which state agencies adopt
146	148		rules;
147	149		(B) the regulatory review process; and
148	150		(C) the processes by which contested cases are
149	151		conducted; and
150	152		(2) assist the office and state agencies in
151	153		identifying:
152	154		(A) unnecessary and ineffective rules;
153	155		(B) the effect and cost to this state and
154	156		regulated persons of the agencies' rules and proposed rules; and
155	157		(C) opportunities to repeal or amend rules to
156	158		provide effective protection to the public with the least cost and
157	159		inconvenience to regulated persons.
158	160		Sec. 465.0108. APPLICATION OF OTHER LAW. Chapter 2110 does
159	161		not apply to the panel.
160	162		SUBCHAPTER D. REPORTING REQUIREMENT
161	163		Sec. 465.0151. BIENNIAL REPORT. (a) Not later than
162	164		December 1 of each even-numbered year, the office shall prepare and
163	165		submit to the governor, lieutenant governor, speaker of the house
164	166		of representatives, and Legislative Budget Board a written report
165	167		that describes:
166	168		(1) the activities undertaken by the office during the
167	169		two-year period preceding the date of the report to accomplish the
168	170		purposes of the office; and
169	171		(2) any legislative recommendations of the office to
170	172		accomplish and further the activities described by Subdivision (1).
171	173		(b) The panel may assist the office in preparing the report
172	174		required by Subsection (a).
173	175		(c) The office shall post the biennial report on a publicly
174	176		accessible Internet website in an easily identifiable and
175	177		accessible location.
176	178		SECTION 3. Section 2001.007, Government Code, is amended by
177	179		adding Subsection (e) to read as follows:
178	180		(e) The secretary of state, Department of Information
179	181		Resources, and Texas Regulatory Efficiency Office shall jointly
180	182		coordinate with each other state agency to establish an Internet
181	183		website that allows a person to search the rules and related
182	184		information made available by state agencies under Subsection (a)
183	185		by:
184	186		(1) the general topic of the rule;
185	187		(2) the type of activity or business regulated by the
186	188		rule; and
187	189		(3) if applicable, the North American Industry
188	190		Classification System (NAICS) sector code for the type of activity
189	191		or business regulated by the rule.
190	192		SECTION 4. Section 2001.024, Government Code, is amended by
191	193		amending Subsection (a) and adding Subsection (e) to read as
192	194		follows:
193	195		(a) The notice of a proposed rule must include:
194	196		(1) a brief explanation of the proposed rule;
195	197		(2) the text of the proposed rule, except any portion
196	198		omitted under Section 2002.014, prepared in a manner to indicate
197	199		any words to be added or deleted from the current text and, to the
198	200		extent practicable, written in plain language;
199	201		(3) a statement of the statutory or other authority
200	202		under which the rule is proposed to be adopted, including:
201	203		(A) a concise explanation of the particular
202	204		statutory or other provisions under which the rule is proposed;
203	205		(B) the section or article of the code affected;
204	206		(C) if applicable, the bill number for the
205	207		legislation that enacted the statutory authority under which the
206	208		rule is proposed to be adopted if the legislation was enacted during
207	209		the four-year period preceding the date notice of the proposed rule
208	210		is given; and
209	211		(D) a certification that the proposed rule has
210	212		been reviewed by legal counsel and found to be within the state
211	213		agency's authority to adopt;
212	214		(4) a fiscal note showing the name and title of the
213	215		officer or employee responsible for preparing or approving the note
214	216		and stating for each year of the first five years that the rule will
215	217		be in effect:
216	218		(A) the additional estimated cost to the state
217	219		and to local governments expected as a result of enforcing or
218	220		administering the rule;
219	221		(B) the estimated reductions in costs to the
220	222		state and to local governments as a result of enforcing or
221	223		administering the rule;
222	224		(C) the estimated loss or increase in revenue to
223	225		the state or to local governments as a result of enforcing or
224	226		administering the rule; and
225	227		(D) if applicable, that enforcing or
226	228		administering the rule does not have foreseeable implications
227	229		relating to cost or revenues of the state or local governments;
228	230		(5) a note about public benefits and costs showing the
229	231		name and title of the officer or employee responsible for preparing
230	232		or approving the note and stating for each year of the first five
231	233		years that the rule will be in effect:
232	234		(A) the public benefits expected as a result of
233	235		adoption of the proposed rule; and
234	236		(B) the probable economic cost to persons
235	237		required to comply with the rule;
236	238		(6) the local employment impact statement prepared
237	239		under Section 2001.022, if required;
238	240		(7) a request for comments on the proposed rule from
239	241		any interested person; [and]
240	242		(8) a request for information related to the cost,
241	243		benefit, or effect of the proposed rule, including any applicable
242	244		data, research, or analysis, from any person required to comply
243	245		with the proposed rule or any other interested person; and
244	246		(9) any other statement required by law.
245	247		(e) For purposes of Subsection (a)(2), the text of a
246	248		proposed rule is written in plain language if the text is written
247	249		using language the general public, including individuals with
248	250		limited English proficiency, can readily understand because the
249	251		language is concise and well-organized.
250	252		SECTION 5. Sections 2001.035(a) and (b), Government Code,
251	253		are amended to read as follows:
252	254		(a) A rule is voidable unless a state agency adopts it in
253	255		substantial compliance with Sections 2001.022 [2001.0225] through
254	256		2001.034.
255	257		(b) A person must initiate a proceeding to contest a rule on
256	258		the ground of noncompliance with the procedural requirements of
257	259		Sections 2001.022 [2001.0225] through 2001.034 not later than the
258	260		second anniversary of the effective date of the rule.
259	261		SECTION 6. Section 2001.040, Government Code, is amended to
260	262		read as follows:
261	263		Sec. 2001.040. SCOPE AND EFFECT OF ORDER INVALIDATING
262	264		AGENCY RULE. If a court finds that an agency has not substantially
263	265		complied with one or more procedural requirements of Sections
264	266		2001.022 [2001.0225] through 2001.034, the court may remand the
265	267		rule, or a portion of the rule, to the agency and, if it does so
266	268		remand, shall provide a reasonable time for the agency to either
267	269		revise or readopt the rule through established procedure. During
268	270		the remand period, the rule shall remain effective unless the court
269	271		finds good cause to invalidate the rule or a portion of the rule,
270	272		effective as of the date of the court's order.
271	273		SECTION 7. Subchapter B, Chapter 2001, Government Code, is
272	274		amended by adding Section 2001.042 to read as follows:
273	275		Sec. 2001.042. JUDICIAL REVIEW OF STATE AGENCY LEGAL
274	276		DETERMINATION REGARDING LAWS AND RULES. Notwithstanding any other
275	277		law, in a judicial proceeding in this state, including an action
276	278		subject to Section 2001.038, a court is not required to give
277	279		deference to a state agency's legal determination regarding the
278	280		construction, validity, or applicability of the law or a rule
279	281		adopted by the state agency responsible for the rule's
280	282		administration, implementation, or other enforcement. This
281	283		section does not prohibit a court from giving consideration to a
282	284		legal determination made by a state agency that is reasonable and
283	285		does not conflict with the plain language of the statute.
284	286		SECTION 8. Subchapter G, Chapter 2001, Government Code, is
285	287		amended by adding Section 2001.1721 to read as follows:
286	288		Sec. 2001.1721. JUDICIAL REVIEW OF QUESTION OF LAW. (a)
287	289		Except as provided by Subsection (b), in any matter brought under
288	290		this subchapter, the reviewing court shall review all questions of
289	291		law de novo, including the interpretation of constitutional or
290	292		statutory provisions or rules adopted by a state agency, without
291	293		giving deference to any legal determination by a state agency.
292	294		(b) Subsection (a) does not prohibit a reviewing court from
293	295		giving consideration to a legal determination made by a state
294	296		agency that is reasonable and does not conflict with the plain
295	297		language of the statute.
296	298		(c) Notwithstanding any other law, this section applies in
297	299		an action for judicial review of a contested case authorized by law
298	300		and other court actions authorized by law that involve a state
299	301		agency's legal determination of a constitutional or statutory
300	302		provision or a rule adopted by the state agency.
301	303		(d) A law may not exempt an action from the application of
302	304		this section except by specific reference to this section.
303	305		SECTION 9. Sections 2001.022(c) and 2001.0221(e),
304	306		Government Code, are repealed.
305	307		SECTION 10. Sections 2001.024, 2001.035, and 2001.040,
306	308		Government Code, as amended by this Act, and the repeal by this Act
307	309		of Sections 2001.022(c) and 2001.0221(e), Government Code, apply
308	310		only to a rule proposed by a state agency on or after the effective
309	311		date of this Act. A rule proposed before the effective date of this
310	312		Act is governed by the law in effect on the date the rule was
311	313		proposed, and the former law is continued in effect for that
312	314		purpose.
313	315		SECTION 11. Sections 2001.042 and 2001.1721, Government
314	316		Code, as added by this Act, apply only to a petition for judicial
315	317		review, action for declaratory judgment, contested case, or other
316	318		proceeding initiated on or after the effective date of this Act. A
317	319		petition for judicial review, action for declaratory judgment,
318	320		contested case, or other proceeding initiated before the effective
319	321		date of this Act is governed by the law in effect on the date the
320	322		proceeding was initiated, and the former law is continued in effect
321	323		for that purpose.
322	324		SECTION 12. The office of the governor, the Department of
323	325		Information Resources, the Texas Regulatory Efficiency Office, and
324	326		the secretary of state are required to implement the changes in law
325	327		made by Chapter 465, Government Code, and Section 2001.007(e),
326	328		Government Code, as added by this Act, only if the legislature
327	329		appropriates money specifically for that purpose. If the
328	330		legislature does not appropriate money specifically for that
329	331		purpose, the office of the governor, the Department of Information
330	332		Resources, the Texas Regulatory Efficiency Office, and the
331	333		secretary of state may, but are not required to, implement those
332	334		changes in law using other appropriations available for that
333	335		purpose.
334	336		SECTION 13. This Act takes effect immediately if it
335	337		receives a vote of two-thirds of all the members elected to each
336	338		house, as provided by Section 39, Article III, Texas Constitution.
337	339		If this Act does not receive the vote necessary for immediate
338	340		effect, this Act takes effect September 1, 2025.
339		-	______________________________ ______________________________
340		-	President of the Senate Speaker of the House
341		-	I hereby certify that S.B. No. 14 passed the Senate on
342		-	March 26, 2025, by the following vote: Yeas 26, Nays 5.
343		-	______________________________
344		-	Secretary of the Senate
345		-	I hereby certify that S.B. No. 14 passed the House on
346		-	April 9, 2025, by the following vote: Yeas 97, Nays 51, one
347		-	present not voting.
348		-	______________________________
349		-	Chief Clerk of the House
350		-	Approved:
351		-	______________________________
352		-	Date
353		-	______________________________
354		-	Governor