88R12444 TJB-D
	By: Harrison	H.B. No. 4260

	A BILL TO BE ENTITLED
	AN ACT
	relating to the establishment of the Legislative Economic Analysis
	Unit and the expiration of certain state agency rules.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle C, Title 3, Government Code, is amended
	by adding Chapter 330 to read as follows:
	CHAPTER 330. LEGISLATIVE ECONOMIC ANALYSIS UNIT
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 330.001.  DEFINITIONS. In this chapter:
	(1)  "Board" means the Legislative Economic Analysis
	Unit Board established under this chapter.
	(2)  "Major rule" means a state agency rule determined
	by the Legislative Economic Analysis Unit to be a rule that will or
	is likely to result in:
	(A)  an annual effect on the state's economy of
	$10 million or more;
	(B)  significant adverse effects on competition,
	employment, investment, productivity, or innovation, including
	significant adverse effects on individual industries or regions; or
	(C)  significant changes in social and cultural
	relations among residents of this state, including significant
	impacts on religious, ethnic, racial, or gender populations.
	(3)  "State agency rule" means a state agency statement
	of general applicability and future effect designed to implement,
	interpret, or prescribe law or policy or to describe the
	organization, procedure, or practice requirements of the agency.
	(4)  "Unit" means the Legislative Economic Analysis
	Unit established under this chapter.
	SUBCHAPTER B. LEGISLATIVE ECONOMIC ANALYSIS UNIT BOARD
	Sec. 330.051.  MEMBERSHIP. (a) The Legislative Economic
	Analysis Unit Board consists of:
	(1)  the lieutenant governor;
	(2)  the speaker of the house of representatives;
	(3)  six senators appointed by the lieutenant governor;
	and
	(4)  six members of the house of representatives
	appointed by the speaker of the house of representatives.
	(b)  The lieutenant governor and the speaker of the house of
	representatives are joint chairs of the board.
	Sec. 330.052.  TERMS; VACANCY. (a) Except for the
	lieutenant governor and the speaker of the house of
	representatives, each member of the board serves a term that begins
	on the date the member is appointed to the board and ends with the
	convening of the first regular legislative session that occurs
	after the date of appointment.
	(b)  If a vacancy occurs in the appointed membership of the
	board, the appropriate appointing authority shall appoint a person
	to serve for the remainder of the unexpired term.
	Sec. 330.053.  MEETINGS. (a) The board shall meet as often
	as necessary to perform its duties. Meetings may be held at any
	time at the request of either of the joint chairs of the board.
	(b)  A majority of the members of the board from each house of
	the legislature constitutes a quorum. If a quorum is present, the
	board may act on any matter that is within its jurisdiction by a
	majority vote.
	(c)  The board shall keep complete minutes of each meeting.
	(d)  Each member of the legislature is entitled to attend and
	present the member's views in any meeting of the board, except that
	a legislator who is not a member of the board may not vote.
	Sec. 330.054.  EXPENSES OF MEMBERS. Members of the board are
	entitled to reimbursement for necessary expenses incurred in
	performing functions as members of the board.
	Sec. 330.055.  LEGISLATIVE CONSIDERATION OF MAJOR RULES.
	The board shall adopt procedures to ensure the timely consideration
	by the legislature of a bill that validates a state agency rule
	determined to be a major rule before the expiration of that rule
	under Section 330.151.
	SUBCHAPTER C. LEGISLATIVE ECONOMIC ANALYSIS UNIT
	Sec. 330.101.  ESTABLISHMENT. The Legislative Economic
	Analysis Unit is established as an independent agency of the
	legislature.
	Sec. 330.102.  CHIEF ECONOMIST. (a) The lieutenant
	governor and speaker of the house of representatives shall jointly
	appoint a chief economist as the director of the unit.
	(b)  The chief economist serves at the pleasure of the
	lieutenant governor and speaker of the house of representatives.
	(c)  The board shall set the salary of the chief economist.
	Sec. 330.103.  PERSONNEL. The chief economist may employ
	professional and clerical staff as necessary and appropriate to
	perform the duties of the unit, subject to limitations imposed by
	the board.
	Sec. 330.104.  APPROPRIATION. The legislature shall make an
	appropriation to the unit in an amount sufficient to fund the
	operations of the unit.
	Sec. 330.105.  DUTIES. The unit shall:
	(1)  analyze each state agency rule submitted under
	Section 330.151 to determine whether the rule is a major rule;
	(2)  make a written determination of any state agency
	rule the unit determines is a major rule, and post that
	determination on the unit's Internet website;
	(3)  notify a state agency if the unit determines that a
	state agency rule adopted by the agency is a major rule;
	(4)  request that the Texas Legislative Council draft a
	bill to validate the major rule;
	(5)  create a written regulatory impact analysis of
	each state agency rule the unit determines is a major rule;
	(6)  on request of the lieutenant governor or speaker
	of the house of representatives, create a written grant impact
	analysis of each grant or other financial benefit that the state has
	received or is eligible to receive from the federal government or
	another source; and
	(7)  perform other duties as prescribed by the board.
	Sec. 330.106.  IMPACT ANALYSES. (a) The chief economist
	shall ensure that each regulatory impact analysis created by the
	unit under Section 330.105(5) includes the following for the major
	rule that is the subject of the analysis:
	(1)  a statement indicating whether the rule is
	necessary;
	(2)  a statement of the legal basis for the rule;
	(3)  an examination of alternative rules;
	(4)  a detailed evaluation of the costs and benefits of
	adopting the rule;
	(5)  a statement of the sources consulted in creating
	the analysis;
	(6)  any key assumption made in creating the analysis;
	and
	(7)  any continued source of uncertainty regarding the
	analysis.
	(b)  The chief economist shall ensure that each grant impact
	analysis created by the unit under Section 330.105(6) includes the
	following for the grant or financial benefit that is the subject of
	the analysis:
	(1)  a statement of the legal basis for accepting or
	using the grant or benefit;
	(2)  a detailed evaluation of the costs and benefits of
	accepting or using the grant or benefit;
	(3)  a statement of the sources consulted in creating
	the analysis;
	(4)  any key assumption made in creating the analysis;
	and
	(5)  any continued source of uncertainty regarding the
	analysis.
	(c)  The chief economist shall ensure that each impact
	analysis created by the unit is posted on the unit's Internet
	website.
	Sec. 330.107.  INTERNET WEBSITE. The unit shall maintain an
	Internet website.
	SUBCHAPTER D. SUNSET OF MAJOR RULES
	Sec. 330.151.  SUNSET OF MAJOR RULE. (a) Each state agency
	shall submit each rule adopted by the agency to the unit.
	(b)  Except as provided by Subsection (c), each state agency
	rule determined by the unit to be a major rule expires on July 1 of
	the odd-numbered year following the unit's determination that the
	rule is a major rule.
	(c)  A major rule does not expire if the legislature by
	general law validates the rule before the date the rule is set to
	expire.
	(d)  A state agency may not adopt a state agency rule that is
	the same or substantially the same as a major rule that has expired.
	SECTION 2.  (a) Not later than the 30th day after the
	effective date of this Act, the lieutenant governor and the speaker
	of the house of representatives shall appoint the initial members
	of the Legislative Economic Analysis Unit Board established under
	Chapter 330, Government Code, as added by this Act.
	(b)  Not later than the 90th day after the effective date of
	this Act, the lieutenant governor and the speaker of the house of
	representatives shall appoint the chief economist of the
	Legislative Economic Analysis Unit as required by Section 330.102,
	Government Code, as added by this Act.
	SECTION 3.  Section 330.151, Government Code, as added by
	this Act, applies only to a state agency rule that is adopted on or
	after the effective date of this Act.
	SECTION 4.  This Act takes effect September 1, 2023.