80R6378 TAD-D
 
  By: Lucio S.B. No. 700
 
 
 
   
 
 
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.