S.B. No. 424
 
 
 
 
AN ACT
  relating to state agency enforcement of laws regulating small
  businesses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 2006, Government Code, is
  amended by adding Section 2006.003 to read as follows:
         Sec. 2006.003.  OPPORTUNITY TO REMEDY VIOLATION; POLICY.
  (a) This section applies only to a state agency with regulatory
  authority over a small business.
         (b)  A state agency may not impose an administrative penalty
  against a small 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
  small business written notice of the violation and an opportunity
  to remedy the violation within a reasonable time after receiving
  the notice. Notwithstanding any other law, a violation is not
  considered to be a continuing violation during the reasonable time
  in which the small business attempts in good faith to remedy the
  violation.
         (c)  Each state agency subject to this section shall adopt a
  policy consistent with the requirements of Subsection (b). The
  policy must provide 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.
         (d)  This section does not apply to an action taken by:
               (1)  a state agency to protect public health and safety
  or the environment;
               (2)  an officer listed in Section 411.0765(b)(18) in
  connection with the regulation of financial services; or
               (3)  the Texas Workforce Commission if the action is
  required to conform to or comply with federal law.
         SECTION 2.  Not later than January 1, 2022, each state agency
  shall adopt and implement the policy required by Section 2006.003,
  Government Code, as added by this Act.
         SECTION 3.  A state agency with regulatory authority over a
  small business is required to implement Section 2006.003,
  Government Code, as added by this Act, only if the legislature
  appropriates money specifically for that purpose. If the
  legislature does not appropriate money specifically for that
  purpose, the state agency may, but is not required to, implement
  Section 2006.003, Government Code, as added by this Act, using
  other appropriations available for the purpose.
         SECTION 4.  This Act takes effect September 1, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 424 passed the Senate on    
  April 8, 2021, by the following vote: Yeas 30, Nays 0; and that the
  Senate concurred in House amendments on May 28, 2021, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 424 passed the House, with
  amendments, on May 25, 2021, by the following vote: Yeas 145,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor