Texas House Bill HB3790

Texas 2019 - 86th Regular

Caption

Relating to judicial review of certain regulations that apply to state licensees.

Impact

If enacted, HB3790 will amend the Occupations Code by introducing a new chapter which delineates the rights of state licensees against local regulations. Specifically, the bill permits state licensees to initiate a lawsuit against municipal authorities when local regulations excessively burden their state-authorized activities. Hearing for such disputes must take place in either the judicial district where the local regulation is enforced or in Travis County, where a heavier burden of proof shifts to the localities in disputes regarding the economic justification and necessity of such regulations.

Summary

House Bill 3790, titled the Regulations with Economic Impact in Need of Scrutiny (REINS) Act, proposes to facilitate judicial review of specific local regulations affecting state licensees in Texas. The bill allows state licensees—entities required to hold a state license for their business operations—to challenge local regulations that impose stricter requirements or potentially adverse economic impacts than what is mandated at the state level. This judicial remedy aims to ensure that state licensees can navigate their relevant business activities without facing burdensome local ordinances that do not align with state law.

Contention

The potential for HB3790 to significantly alter the balance of regulatory power between state and local governments has generated various points of contention. Proponents argue that it is necessary to avoid a fragmented regulatory landscape that could stifle business operations and economic growth. On the contrary, critics express concern that the bill would undermine local control and authorize an open avenue for businesses to challenge regulatory protections intended to serve public welfare and safety. This could lead to fewer local protections against practices deemed harmful by communities at the local level.

Additional_notes

Under this bill, if a state licensee successfully challenges a local regulation, the municipality may be responsible for covering the legal costs incurred by the licensee. This provision may deter local governments from enacting new regulations, impacting their capacity to address unique local issues.