|  | 
|  | A BILL TO BE ENTITLED | 
|  | AN ACT | 
|  | relating to state agency rules affecting small businesses. | 
|  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
|  | SECTION 1.  Sections 2006.001(2) and (3), Government Code, | 
|  | are amended to read as follows: | 
|  | (2)  "Small business" means a legal entity, including a | 
|  | corporation, partnership, or sole proprietorship, that: | 
|  | (A)  is formed for the purpose of making a profit; | 
|  | (B)  is independently owned and operated;  and | 
|  | (C)  has fewer than 500 [ 100] employees or less | 
|  | than $6 [ $1] million in annual gross receipts. | 
|  | (3)  "State agency" means a department, board, bureau, | 
|  | commission, division, office, council, or other agency of the state | 
|  | and includes an officer who is authorized by law to determine | 
|  | contested cases. | 
|  | SECTION 2.  Section 2006.002, Government Code, is amended by | 
|  | amending Subsections (c) and (d) and adding Subsection (c-1) to | 
|  | read as follows: | 
|  | (c)  Before adopting a proposed rule that may [ would] have an | 
|  | adverse economic effect on small businesses, a state agency shall | 
|  | prepare: | 
|  | (1)  an economic impact statement that estimates the | 
|  | number of small businesses subject to the proposed rule, projects | 
|  | the economic impact of the rule on small businesses, and describes | 
|  | alternative methods of achieving the purpose of the proposed rule; | 
|  | and | 
|  | (2)  a regulatory flexibility analysis that includes | 
|  | the agency's consideration of alternative methods of achieving the | 
|  | purpose of the proposed rule. | 
|  | (c-1)  The analysis under Subsection (c) shall consider, if | 
|  | consistent with the health, safety, and environmental and economic | 
|  | welfare of the state, using regulatory methods that will accomplish | 
|  | the objectives of applicable rules while minimizing adverse impacts | 
|  | on small businesses.  The state agency must include in the analysis | 
|  | several proposed methods of reducing the adverse impact of a | 
|  | proposed rule on a small business. [ a statement of the effect of  | 
|  | the rule on small businesses.  The statement must include: | 
|  | [ (1)an analysis of the cost of compliance with the  | 
|  | rule for small businesses; and | 
|  | [ (2)a comparison of the cost of compliance for small  | 
|  | businesses with the cost of compliance for the largest businesses  | 
|  | affected by the rule, using at least one of the following standards: | 
|  | [ (A)cost for each employee; | 
|  | [ (B)cost for each hour of labor; or | 
|  | [ (C)cost for each $100 of sales.] | 
|  | (d)  The agency shall include the economic impact statement | 
|  | and regulatory flexibility analysis [ statement of effect] as part | 
|  | of the notice of the proposed rule that the agency files with the | 
|  | secretary of state for publication in the Texas Register and shall | 
|  | provide copies to the standing committee of each house of the | 
|  | legislature that is charged with reviewing the proposed rule. | 
|  | SECTION 3.  Subchapter A, Chapter 2006, Government Code, is | 
|  | amended by adding Sections 2006.003 and 2006.004 to read as | 
|  | follows: | 
|  | Sec. 2006.003.  JUDICIAL REVIEW OF STATE AGENCY DECISION TO | 
|  | ADOPT RULE.  (a)  A small business that is adversely affected by a | 
|  | state agency's final action with regard to the adoption of a rule is | 
|  | entitled to judicial review of the agency's compliance with the | 
|  | requirements of this subchapter. | 
|  | (b)  A small business may seek judicial review beginning on | 
|  | the date of the state agency's final action with regard to the | 
|  | adoption of a rule and not later than one year after that date. | 
|  | Sec. 2006.004.  STATE AGENCY REVIEW OF RULES.  (a)  A state | 
|  | agency shall: | 
|  | (1)  review rules adopted before January 1, 2008, to | 
|  | determine whether those rules have any adverse economic impact on | 
|  | small businesses; and | 
|  | (2)  at least every five years, review rules adopted on | 
|  | or after January 1, 2008, to determine whether those rules have any | 
|  | adverse economic impact on small businesses. | 
|  | (b)  If a state agency determines that a rule has an adverse | 
|  | economic impact on small businesses, the agency shall decide | 
|  | whether the rule should be repealed or amended to minimize any | 
|  | adverse economic impact on small businesses. | 
|  | SECTION 4.  Section 2006.002, Government Code, as amended by | 
|  | this Act, applies only to a rule that is adopted on or after January | 
|  | 1, 2008.  A rule adopted before that date is governed by the law in | 
|  | effect when the rule was adopted, and the former law is continued in | 
|  | effect for that purpose. | 
|  | SECTION 5.  Not later than September 1, 2011, a state agency | 
|  | shall review all rules adopted before January 1, 2008, as required | 
|  | by Section 2006.004(a)(1), Government Code, as added by this Act, | 
|  | to determine whether those rules have any adverse economic impact | 
|  | on small businesses. | 
|  | SECTION 6.  This Act takes effect September 1, 2007. |