Texas 2017 - 85th Regular

Texas House Bill HB3947 Compare Versions

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11 By: Laubenberg H.B. No. 3947
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44 A BILL TO BE ENTITLED
55 AN ACT
66 relating to judicial review of certain regulations that apply to
77 state licensees.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. This Act may be cited as the Regulations with
1010 Economic Impact in Need of Scrutiny (REINS) Act.
1111 SECTION 2. Title 6, Civil Practice and Remedies Code, is
1212 amended by adding Chapter 151 to read as follows:
1313 CHAPTER 151. REGULATIONS WITH ECONOMIC IMPACT IN NEED OF SCRUTINY
1414 Sec. 151.001. PURPOSE OF CHAPTER. It is the purpose of this
1515 chapter to provide a judicial remedy to ensure that a state licensee
1616 has the right to engage in an occupation or business activity
1717 authorized by and regulated under state law without burdensome or
1818 inconsistent local regulation of the state licensee's occupation or
1919 lawful business activities.
2020 Sec. 151.002. DEFINITIONS. In this chapter:
2121 (1) "Local regulation" means any ordinance, rule, or
2222 regulation adopted by the governing body of a municipality that
2323 establishes requirements for, imposes restrictions on, or
2424 otherwise regulates the business activity of a state licensee
2525 within the municipality or the municipality's extraterritorial
2626 jurisdiction.
2727 (2) "State licensee" means a person or entity that,
2828 under state law, in order to practice the person's occupation or
2929 conduct the entity's business in this state, is required to obtain a
3030 license, permit, registration certificate, or other evidence of
3131 authority from, and is subject to regulation by, a state licensing
3232 authority.
3333 (3) "State licensing authority" means a state agency,
3434 department, board, or commission or the executive or administrative
3535 officer of a state agency, department, board, or commission.
3636 Sec. 151.003. SUIT TO ENJOIN ENFORCMENT OF LOCAL
3737 REGULATION. (a) A suit to enjoin enforcement of a local regulation
3838 may be brought by a state licensee that is subject to the local
3939 regulation if the local regulation:
4040 (1) establishes requirements for, imposes
4141 restrictions on, or otherwise regulates the business activity of
4242 the state licensee in a manner that is more stringent than the
4343 requirements, restrictions, and regulations imposed on the state
4444 licensee under state law; or
4545 (2) would result in an adverse economic impact on the
4646 state licensee.
4747 (b) A suit under this chapter must be brought in a district
4848 court:
4949 (1) for a judicial district in which any portion of the
5050 territory of the municipality that adopted the local regulation is
5151 located; or
5252 (2) in Travis County.
5353 (c) In a suit under this chapter, the state licensee must
5454 show by a preponderance of the evidence that the local regulation
5555 substantially burden's the state licensee's right to engage in an
5656 occupation authorized by and regulated under state law or would
5757 result in an adverse economic impact on the state licensee. In a
5858 suit under this chapter, the state licensee may submit evidence
5959 regarding the adverse economic impact of similar local regulations
6060 in other jurisdictions inside or outside the state.
6161 (d) If the state licensee meets the preponderance of the
6262 evidence burden required by Subsection (c), the municipality has
6363 the burden of establishing by clear and convincing evidence that
6464 the local regulation that the municipality seeks to enforce:
6565 (1) does not conflict with state law; and
6666 (2)
6767 is necessary and narrowly tailored to protect
6868 against actual and specific harm to the public health or safety.
6969 (e) The district court may grant any prohibitory or
7070 mandatory relief warranted by the facts, including a temporary
7171 restraining order, temporary injunction, or permanent injunction.
7272 (f) If a state licensee prevails in a suit brought under
7373 this chapter, the court shall award the state licensee court costs
7474 and reasonable and necessary attorney's fees to be paid by the
7575 municipality.
7676 SECTION 3. This Act takes effect immediately if it receives
7777 a vote of two-thirds of all the members elected to each house, as
7878 provided by Section 39, Article III, Texas Constitution. If this
7979 Act does not receive the vote necessary for immediate effect, this
8080 Act takes effect September 1, 2017.