89R6377 CS-D By: Hall S.B. No. 1474 A BILL TO BE ENTITLED AN ACT relating to the procedure by which state agencies adopt rules, including legislative approval of certain rules proposed or adopted by state agencies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2001.027, Government Code, is amended to read as follows: Sec. 2001.027. WITHDRAWAL OF PROPOSED RULE; EFFECT OF REPEATED WITHDRAWAL. (a) A proposed rule is withdrawn six months after the date of publication of notice of the proposed rule in the Texas Register if a state agency has failed by that time to adopt, adopt as amended, or withdraw the proposed rule. (b) If a rule proposed by a state agency is withdrawn on at least two occasions under Subsection (a) because the agency has failed to adopt, adopt as amended, or withdraw the proposed rule, the agency may not propose a rule that is substantially similar to the withdrawn rule unless the proposed rule is approved by a majority vote of both houses of the legislature. SECTION 2. The heading to Section 2001.029, Government Code, is amended to read as follows: Sec. 2001.029. PUBLIC COMMENT; EFFECT ON DURATION OF CERTAIN RULES. SECTION 3. Section 2001.029, Government Code, is amended by adding Subsection (d) to read as follows: (d) This subsection applies only to a rule adopted by a state agency for which at least 52 percent of the written and oral submissions concerning the rule received by the agency under Subsection (c) express disapproval of the rule. A rule to which this subsection applies that takes effect during the two calendar years preceding January 1 of the month in which a regular session of the legislature convenes expires on September 1 following final adjournment of that regular session unless the rule is approved by a majority vote of both houses of the legislature during the regular session. SECTION 4. Subchapter B, Chapter 2001, Government Code, is amended by adding Section 2001.0321 to read as follows: Sec. 2001.0321. LEGISLATIVE APPROVAL OF CERTAIN STATE AGENCY RULES REQUIRED. (a) This section applies to each rule proposed and each emergency rule adopted by a state agency, other than an emergency rule that: (1) is adopted under Section 2001.034; and (2) will be in effect for 90 days or less. (b) A state agency shall file a copy of each proposed or emergency rule with the officer or employee with whom bills are filed in each house of the legislature. The agency shall file the proposed rule on the same day the agency files notice of the rule with the secretary of state as required under Section 2001.023 or, if the rule is adopted under Section 2001.034, on the date the agency files the emergency rule with the secretary of state under Section 2001.034(d). After filing, the rule shall be referred to a standing committee in the same manner as bills are referred, unless a house by rule provides for another manner of referral of agency rules. Each rule must be referred to a standing committee before the 10th day after the date the rule is filed with the appropriate officer or employee of each house. (c) Not later than the 30th day after the date a proposed or emergency rule is referred to a committee, the committee shall consider the rule at a committee meeting where public testimony is accepted and vote on the rule. A rule is approved by the unanimous vote of the committee's full membership. If the committee does not approve a rule by unanimous vote of the committee's full membership, the rule is suspended. If a rule is suspended in committee, the committee shall, not later than the third day after the date the rule is suspended: (1) notify the state agency that proposed or adopted the rule of the suspension; and (2) file notice of the suspension with the secretary of state for publication in the Texas Register. (d) If a proposed or emergency rule is suspended in committee when the legislature is in session, the chair of the committee shall give written notice of the suspension to the presiding officer of the appropriate house not later than the fifth day after the date the rule is suspended. Not later than the 35th day after the date the rule is suspended in committee, the members of that house shall vote on the rule. If a majority of members of that house vote to approve the rule, the rule is approved and the committee's suspension terminates. If a majority of members of that house do not vote to approve the rule, the committee's suspension remains in effect. (e) If a proposed or emergency rule is suspended in committee when the legislature is not in session, the secretary of state shall give written notice of the suspension to the presiding officer of the appropriate house during the first 10 days of the next regular legislative session. Not later than the 30th day after the date the notice is given, the members of that house shall vote on the rule. If a majority of members of that house vote to approve the rule, the rule is approved and the committee's suspension terminates. If a majority of members of that house do not vote to approve the rule, the committee's suspension remains in effect. (f) Not later than the third day after the date a suspension is terminated under Subsection (d) or (e), the presiding officer of the appropriate house shall: (1) notify the state agency that proposed or adopted the rule of the suspension's termination; and (2) file notice of the termination with the secretary of state for publication in the Texas Register. (g) A state agency may adopt a proposed rule or continue an emergency rule in effect only if the rule: (1) is approved by both committees to which it is referred as provided by Subsection (c); (2) was suspended in committee in only one house of the legislature, and that house later votes to approve the rule; or (3) was suspended in committee in both houses of the legislature, and both houses later vote to approve the rule. (h) During the time a proposed or emergency rule is suspended under this section, the state agency that proposed or adopted the rule may not adopt a rule or emergency rule containing the substance of the suspended rule. SECTION 5. Section 2001.032, Government Code, is repealed. SECTION 6. The changes in law made by this Act apply only to a rule proposed by a state agency for which notice is first published under Section 2001.023, Government Code, on or after the effective date of this Act. A rule for which notice is first published under Section 2001.023, Government Code, before the effective date of this Act is governed by the law in effect on the date the notice was published, and the former law is continued in effect for that purpose. SECTION 7. This Act takes effect January 1, 2026, but only if the constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, authorizing the legislature to provide for legislative review or approval of state agency rules is approved by the voters. If that proposed constitutional amendment is not approved by the voters, this Act has no effect.