87th Session Recap - Regulations and State Agencies

H.B. 1322 - Relating to a summary of a rule proposed by a state agency.

This new law requires that when a state agency files notice of a proposed rule, the agency shall publish on the agency's website a summary of the proposed rule written in plain language in both English and Spanish.

This law, however, does not go into effect until September 1, 2023.

H.B. 1560 - Relating to the continuation and functions of the Texas Department of Licensing and Regulation.

H.B. 1560 was the TDLR “sunset” bill.  In large part the bill renews TDLR for another 12 years. The bill also identified certain processes inconsistent with best practices for licensing agencies and found TDLR's decision making for key regulatory functions is largely driven by a reactive process reliant more on qualitative information than consistent, reliable data.

The bill was effectively a result of an “audit” of the agency, but of the many changes made to various functions and areas of regulation under TDLR’s jurisdiction, there were no changes impacting residential modular housing.

The bill is effective on September 1, 2021.

S.B. 424 - Relating to state agency enforcement of laws regulating small businesses.

This new law provides small businesses with relief from future regulation by implementing a right to cure policy that would allow a small business in violation of a regulation the ability to remedy the issue within a reasonable time before a penalty is imposed if it is the business's first violation.

"Small business" means a legal entity, including a corporation, partnership, or sole proprietorship, that:

(A)  is formed for the purpose of making a profit;

(B)  is independently owned and operated;  and

(C)  has fewer than 100 employees or less than $6 million in annual gross receipts.

S.B. 424 seeks to require each applicable state agency to adopt such a policy.  As many manufactured home selling and servicing business fall within the definition of a “small business” this new law will provide them with a right to cure a regulatory violation.

This bill is effective on September 1, 2021.