H.B. No. 3433
 
 
 
 
AN ACT
  relating to the adoption by state agencies of rules affecting rural
  communities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 2006, Government Code, is
  amended to read as follows:
  CHAPTER 2006. AGENCY ACTIONS AFFECTING SMALL BUSINESSES AND RURAL
  COMMUNITIES
         SECTION 2.  Section 2006.001, Government Code, is amended by
  adding Subdivision (1-a) to read as follows:
               (1-a) "Rural community" means a municipality with a
  population of less than 25,000.
         SECTION 3.  Sections 2006.002(a), (b), (c), (c-1), (d), and
  (g), Government Code, are amended to read as follows:
         (a)  A state agency considering adoption of a rule that would
  have an adverse economic effect on small businesses, [or]
  micro-businesses, or rural communities shall reduce that effect if
  doing so is legal and feasible considering the purpose of the
  statute under which the rule is to be adopted.
         (b)  To reduce an adverse effect on small businesses and
  rural communities, as applicable, an agency may:
               (1)  establish separate compliance or reporting
  requirements for small businesses and rural communities;
               (2)  use performance standards in place of design
  standards for small businesses and rural communities; or
               (3)  exempt small businesses and rural communities from
  all or part of the rule.
         (c)  Before adopting a rule that may have an adverse economic
  effect on small businesses or rural communities, as applicable, a
  state agency shall prepare:
               (1)  an economic impact statement that estimates the
  number of small businesses or rural communities subject to the
  proposed rule, projects the economic impact of the rule on small
  businesses or rural communities, 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 or rural communities, as applicable.  The state
  agency must include in the analysis several proposed methods of
  reducing the adverse impact of a proposed rule on a small business
  or rural community.
         (d)  The agency shall include the economic impact statement
  and regulatory flexibility analysis 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:
               (1)  the standing committee of each house of the
  legislature that is charged with reviewing the proposed rule; and
               (2)  if feasible, each member of the legislature who
  represents a rural community adversely impacted by the proposed
  rule.
         (g)  The attorney general, in consultation with the
  comptroller, shall prepare guidelines to assist a state agency:
               (1)  in determining a proposed rule's potential adverse
  economic effects on small businesses and rural communities, as
  applicable; and
               (2)  in identifying and evaluating alternative methods
  of achieving the purpose of a proposed rule.
         SECTION 4.  Subchapter A, Chapter 2006, Government Code, as
  amended by this Act, applies only to a rule proposed by a state
  agency on or after the effective date of this Act. A rule proposed
  before that date is governed by the law in effect on the date the
  rule was proposed, and the former law is continued in effect for
  that purpose.
         SECTION 5.  This Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3433 was passed by the House on May 9,
  2017, by the following vote:  Yeas 142, Nays 3, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3433 was passed by the Senate on May
  19, 2017, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor