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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 87(R)

Senate Bill 424

Senate Author:  Hinojosa et al.

Effective:  9-1-21

House Sponsor:  Hunter


            Senate Bill 424 amends the Government Code to prohibit a state agency with regulatory authority over an applicable small business from imposing an administrative penalty against such a business for a first violation of a statute or a rule administered by the agency, other than a violation committed knowingly or intentionally, unless the agency first provides the business written notice of the violation and an opportunity to remedy the violation within a reasonable time after receiving the notice, with certain exceptions. The bill requires each applicable agency to adopt a policy consistent with the bill's requirements that provides that the agency will not attempt to recover an administrative penalty during the reasonable time the small business is attempting in good faith to remedy the violation. Implementation of a provision of the bill by an applicable state agency is mandatory only if a specific appropriation is made for that purpose.