89R9168 CS-F

By: Hughes S.B. No. 943

A BILL TO BE ENTITLED

AN ACT

relating to the establishment and duties of the Texas Regulatory Efficiency Office and the Texas Regulatory Efficiency Advisory Panel.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle E, Title 4, Government Code, is amended by adding Chapter 465 to read as follows:

CHAPTER 465. REGULATORY AND RULEMAKING EFFICIENCY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 465.0001. DEFINITIONS. (a) The definitions in Chapter 2001 apply to this chapter.

(b) In this chapter:

(1) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code.

(2) "Office" means the Texas Regulatory Efficiency Office.

(3) "Panel" means the Texas Regulatory Efficiency Advisory Panel.

Sec. 465.0002. APPLICATION OF SUNSET ACT TO OFFICE AND PANEL. (a) The Texas Regulatory Efficiency Office and the Texas Regulatory Efficiency Advisory Panel are subject to Chapter 325 (Texas Sunset Act).

(b) Unless continued in existence as provided by Chapter 325 (Texas Sunset Act), the office and panel are abolished September 1, 2037.

SUBCHAPTER B. TEXAS REGULATORY EFFICIENCY OFFICE

Sec. 465.0051. ESTABLISHMENT OF OFFICE. The Texas Regulatory Efficiency Office is established as an office within the office of the governor.

Sec. 465.0052. PURPOSES OF OFFICE. (a) The office is established to:

(1) identify and expand opportunities for implementing efficiencies in:

(A) the process by which state agencies adopt rules;

(B) the regulatory review process; and

(C) the manner in which contested cases are conducted;

(2) assist state agencies in identifying:

(A) unnecessary and ineffective rules;

(B) the effect and cost to this state and regulated persons of the agencies' rules and proposed rules; and

(C) opportunities to repeal or amend rules to provide effective protection to the public with the least cost and inconvenience to regulated persons;

(3) coordinate with the secretary of state, the Department of Information Resources, and other state agencies in the secretary of state's efforts under Section 2001.007 to:

(A) improve public access to information regarding state agency rules, forms, and filings; and

(B) create an interactive Internet website for use by the public to search and obtain information regarding rules, forms, and filings applicable to specific regulated occupations, industries, professions, and activities;

(4) establish a goal for each state agency to reduce rules or other regulatory requirements, including by:

(A) eliminating unnecessary or ineffective rules or other regulatory requirements; and

(B) reducing the inefficiencies resulting from rules or other regulatory requirements adopted by the agency by:

(i) reducing required training hours;

(ii) reducing the number of forms a regulated person is required to complete;

(iii) reducing the amount of information required by forms that a regulated person is required to complete;

(iv) reducing the amount of or eliminating fees imposed by the rules;

(v) reducing the number of activities covered by the rules; or

(vi) creating waivers for or exemptions from the rules under certain circumstances; and

(5) prepare and publish written manuals, guides, or other publications as required by this chapter.

(b) The office shall coordinate with the panel, state agencies, and the governor's office to accomplish the purposes of the office.

Sec. 465.0053. REGULATORY ECONOMIC ANALYSIS MANUAL. (a) The office shall prepare and publish a regulatory economic analysis manual.

(b) The manual required by Subsection (a) must identify and describe best practices for state agencies related to:

(1) preparing a local employment impact statement under Section 2001.022;

(2) conducting a regulatory analysis under Section 2001.0225;

(3) preparing a fiscal note under Section 2001.024; and

(4) preparing a note regarding public benefits and costs under Section 2001.024.

(c) The office shall ensure that the manual required by Subsection (a) is written in plain language that may be easily understood by the public.

Sec. 465.0054. REGULATORY REDUCTION GUIDE. (a) The office shall prepare and publish a regulatory reduction guide.

(b) The purpose of the guide required by Subsection (a) is to assist each state agency to:

(1) meet the goal established by the agency under Section 465.0052(a)(4); and

(2) document that the agency met the goal described by Subdivision (1).

(c) The office shall ensure that the guide required by Subsection (a) is written in plain language that may be easily understood by the public.

Sec. 465.0055. RULEMAKING AND REGULATORY EFFICIENCY FORUM. The office shall establish a forum for interested persons described by Section 2001.021(d) to assist the office and the panel to accomplish the purposes of the office and panel.

SUBCHAPTER C. TEXAS REGULATORY EFFICIENCY ADVISORY PANEL

Sec. 465.0101. ESTABLISHMENT OF PANEL. The Texas Regulatory Efficiency Advisory Panel is established as an advisory panel to the governor and the legislature.

Sec. 465.0102. ADMINISTRATIVE ATTACHMENT AND SUPPORT. (a) The panel is administratively attached to the office of the governor.

(b) The office established under this chapter shall provide staff, facilities, and other administrative support necessary to assist the panel in performing the panel's duties under this chapter.

Sec. 465.0103. COMPOSITION OF PANEL. (a) The panel is composed of the following seven members appointed by the governor:

(1) one member who represents regulated small businesses;

(2) one member who represents regulated large businesses;

(3) one member who holds an occupational license issued by a state agency;

(4) one member employed by an institution of higher education who conducts research at the institution and has experience addressing issues related to state agency rules;

(5) one member who represents state agencies that adopt rules; and

(6) two members of the public.

(b) In making appointments under Subsection (a), the governor shall give priority to individuals with expertise in state agency rules and the rulemaking process, including expertise in regulatory research, compliance, cost, and impact analysis, and related law and procedure.

Sec. 465.0104. TERMS; VACANCY. (a) Members of the panel serve two-year terms.

(b) A vacancy on the panel shall be filled in the same manner and is subject to the same qualifications as the original appointment. A panel member appointed to fill a vacancy on the panel shall serve the remainder of the unexpired term.

Sec. 465.0105. REIMBURSEMENT FOR EXPENSES. Members of the panel serve without compensation but are entitled to reimbursement for actual and necessary expenses incurred in performing official duties under this chapter.

Sec. 465.0106. PRESIDING OFFICER. The governor shall appoint one member of the panel to serve as the panel's presiding officer.

Sec. 465.0107. MEETINGS. The panel shall meet at the call of the panel's presiding officer.

Sec. 465.0108. PURPOSES OF PANEL. The panel is established to:

(1) use the knowledge and expertise of regulated persons, small and large businesses, institutions of higher education, and state agencies to identify and expand opportunities for implementing efficiencies in:

(A) the process by which state agencies adopt rules;

(B) the regulatory review process; and

(C) the manner in which contested cases are conducted; and

(2) assist the office and state agencies in identifying:

(A) unnecessary and ineffective rules;

(B) the effect and cost to this state and regulated persons of the agencies' rules and proposed rules; and

(C) opportunities to repeal or amend rules to provide effective protection to the public with the least cost and inconvenience to regulated persons.

Sec. 465.0109. APPLICATION OF OTHER LAW. Chapter 2110 does not apply to the panel.

SUBCHAPTER D. REPORTING REQUIREMENT

Sec. 465.0151. BIENNIAL REPORT. (a) Not later than December 1 of each even-numbered year, the office shall prepare and submit to the governor and the Legislative Budget Board a written report that describes:

(1) the activities undertaken by the office during the two-year period preceding the date of the report to accomplish the purposes of the office;

(2) any findings and recommendations of the office related to the office's purposes under this chapter; and

(3) any legislative recommendations of the office to accomplish and further the findings and recommendations described by Subdivision (2).

(b) The panel may assist the office in preparing the report required by Subsection (a).

SECTION 2. Section 2001.007, Government Code, is amended by adding Subsection (e) to read as follows:

(e) The secretary of state, Department of Information Resources, and Texas Regulatory Efficiency Office shall jointly coordinate with each other state agency to establish an Internet website that allows a person to search the rules and related information made available by state agencies under Subsection (a) by:

(1) the general topic of the rule;

(2) the type of activity or business regulated by the rule; and

(3) if applicable, the North American Industry Classification System (NAICS) sector code for the type of activity or business regulated by the rule.

SECTION 3. (a) As soon as practicable after the effective date of this Act, but not later than January 1, 2026, the governor shall appoint the members of the Texas Regulatory Efficiency Advisory Panel as required by Section 465.0103, Government Code, as added by this Act.

(b) Not later than the 60th day after the date the governor appoints the members of the Texas Regulatory Efficiency Advisory Panel under Subsection (a) of this section, the panel shall hold its first meeting.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.