85R7120 YDB-D     By: Lambert, Springer, Bailes, Clardy, Darby, H.B. No. 3433       et al.       A BILL TO BE ENTITLED   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.