86R14771 MAW-F
By: Paddie H.B. No. 4112
A BILL TO BE ENTITLED
AN ACT
relating to the review of certain occupational licensing rules by
the office of the governor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 57, Occupations Code, is amended by
designating Section 57.001 as Subchapter A and adding a subchapter
heading to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 2. Chapter 57, Occupations Code, is amended by
adding Subchapter B, and a heading is added to that subchapter to
read as follows:
SUBCHAPTER B. GOVERNING BOARD MEMBERSHIP
SECTION 3. Section 57.002, Occupations Code, is transferred
to Subchapter B, Chapter 57, Occupations Code, as added by this Act,
and redesignated as Section 57.051, Occupations Code, to read as
follows:
Sec. 57.051 [57.002]. REQUIREMENTS FOR GOVERNING BOARD
MEMBERSHIP. A person may not be required to be a member of a private
trade association as a precondition to serving as a member of the
governing board of a state agency that issues a license or otherwise
regulates a business, occupation, or profession.
SECTION 4. Chapter 57, Occupations Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C. REVIEW OF STATE AGENCY RULES
Sec. 57.101. DEFINITION. In this subchapter, "division"
means the division of the governor's office established under this
subchapter.
Sec. 57.102. APPLICABILITY. This subchapter applies only
to a state agency with a governing board that is controlled by
persons who provide services that are regulated by the agency.
Sec. 57.103. ESTABLISHMENT OF DIVISION. (a) The governor
shall:
(1) establish a division to review state agency rules
in accordance with this subchapter; and
(2) appoint a director for the division to serve at the
pleasure of the governor.
(b) The director must be licensed to practice law in this
state and have experience in antitrust law.
Sec. 57.104. SUBMISSION OF CERTAIN STATE AGENCY RULES. (a)
A state agency that issues a license must submit any proposed rule
affecting market competition in this state relating to the
business, occupation, or profession for which a license is issued
to the division for review before the rule is adopted or
implemented. A state agency that issues a license must also submit
to the division for review any rule that the agency is considering
for readoption under Section 2001.039, Government Code, if the rule
affects market competition as described by this section.
(b) The state agency must include with the submission a
statement of the purpose for the proposed rule, copies of all
administrative records regarding the proposed rule, including any
information or comments the agency received from the public, and
any other information required by the division.
(c) For purposes of this section, a rule affects market
competition if the rule would, if implemented or readopted:
(1) create a barrier to market participation in this
state; or
(2) result in higher prices or reduced competition for
a product or service provided by a license holder in this state.
Sec. 57.105. REVIEW BY DIVISION. (a) The division shall
conduct a thorough, independent review of each proposed rule
submitted under Section 57.104 to determine:
(1) if the effect of the proposed rule on market
competition is consistent with applicable state policy; and
(2) whether the proposed rule promotes a clearly
articulated and affirmatively expressed policy as established by
the legislature to displace competition with government action.
(b) In conducting the review, the division may:
(1) request information from the state agency;
(2) require the state agency to conduct an analysis of
possible implications of the rule;
(3) solicit public comments; or
(4) hold public hearings.
(c) After review, the division shall:
(1) approve the proposed rule; or
(2) reject the proposed rule and return the rule to the
state agency with instructions for revising the rule to be
consistent with applicable state policy.
(d) A state agency may not finally adopt or implement a
proposed rule required to be submitted for review under this
subchapter unless the division has approved the rule under this
section.
(e) The division shall, for each proposed rule submitted
under this subchapter, provide to the state agency and make
available to the public an explanation of the division's reasons
for approving or rejecting the rule, including a discussion of the
division's determination regarding the consistency of the rule with
applicable state policy.
(f) The division may initiate a review of a proposed rule
that was not submitted for review under this subchapter if the
division has reason to believe that the proposed rule may have an
anticompetitive market effect. A state agency may not finally
adopt or implement a proposed rule for which the division has
initiated a review under this subsection unless the division
approves the rule in accordance with this section.
Sec. 57.106. RULEMAKING AUTHORITY. The division may adopt
rules to carry out this subchapter.
SECTION 5. This Act takes effect September 1, 2019.