Texas 2019 - 86th Regular

Texas House Bill HB4112 Compare Versions

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11 86R14771 MAW-F
22 By: Paddie H.B. No. 4112
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the review of certain occupational licensing rules by
88 the office of the governor.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Chapter 57, Occupations Code, is amended by
1111 designating Section 57.001 as Subchapter A and adding a subchapter
1212 heading to read as follows:
1313 SUBCHAPTER A. GENERAL PROVISIONS
1414 SECTION 2. Chapter 57, Occupations Code, is amended by
1515 adding Subchapter B, and a heading is added to that subchapter to
1616 read as follows:
1717 SUBCHAPTER B. GOVERNING BOARD MEMBERSHIP
1818 SECTION 3. Section 57.002, Occupations Code, is transferred
1919 to Subchapter B, Chapter 57, Occupations Code, as added by this Act,
2020 and redesignated as Section 57.051, Occupations Code, to read as
2121 follows:
2222 Sec. 57.051 [57.002]. REQUIREMENTS FOR GOVERNING BOARD
2323 MEMBERSHIP. A person may not be required to be a member of a private
2424 trade association as a precondition to serving as a member of the
2525 governing board of a state agency that issues a license or otherwise
2626 regulates a business, occupation, or profession.
2727 SECTION 4. Chapter 57, Occupations Code, is amended by
2828 adding Subchapter C to read as follows:
2929 SUBCHAPTER C. REVIEW OF STATE AGENCY RULES
3030 Sec. 57.101. DEFINITION. In this subchapter, "division"
3131 means the division of the governor's office established under this
3232 subchapter.
3333 Sec. 57.102. APPLICABILITY. This subchapter applies only
3434 to a state agency with a governing board that is controlled by
3535 persons who provide services that are regulated by the agency.
3636 Sec. 57.103. ESTABLISHMENT OF DIVISION. (a) The governor
3737 shall:
3838 (1) establish a division to review state agency rules
3939 in accordance with this subchapter; and
4040 (2) appoint a director for the division to serve at the
4141 pleasure of the governor.
4242 (b) The director must be licensed to practice law in this
4343 state and have experience in antitrust law.
4444 Sec. 57.104. SUBMISSION OF CERTAIN STATE AGENCY RULES. (a)
4545 A state agency that issues a license must submit any proposed rule
4646 affecting market competition in this state relating to the
4747 business, occupation, or profession for which a license is issued
4848 to the division for review before the rule is adopted or
4949 implemented. A state agency that issues a license must also submit
5050 to the division for review any rule that the agency is considering
5151 for readoption under Section 2001.039, Government Code, if the rule
5252 affects market competition as described by this section.
5353 (b) The state agency must include with the submission a
5454 statement of the purpose for the proposed rule, copies of all
5555 administrative records regarding the proposed rule, including any
5656 information or comments the agency received from the public, and
5757 any other information required by the division.
5858 (c) For purposes of this section, a rule affects market
5959 competition if the rule would, if implemented or readopted:
6060 (1) create a barrier to market participation in this
6161 state; or
6262 (2) result in higher prices or reduced competition for
6363 a product or service provided by a license holder in this state.
6464 Sec. 57.105. REVIEW BY DIVISION. (a) The division shall
6565 conduct a thorough, independent review of each proposed rule
6666 submitted under Section 57.104 to determine:
6767 (1) if the effect of the proposed rule on market
6868 competition is consistent with applicable state policy; and
6969 (2) whether the proposed rule promotes a clearly
7070 articulated and affirmatively expressed policy as established by
7171 the legislature to displace competition with government action.
7272 (b) In conducting the review, the division may:
7373 (1) request information from the state agency;
7474 (2) require the state agency to conduct an analysis of
7575 possible implications of the rule;
7676 (3) solicit public comments; or
7777 (4) hold public hearings.
7878 (c) After review, the division shall:
7979 (1) approve the proposed rule; or
8080 (2) reject the proposed rule and return the rule to the
8181 state agency with instructions for revising the rule to be
8282 consistent with applicable state policy.
8383 (d) A state agency may not finally adopt or implement a
8484 proposed rule required to be submitted for review under this
8585 subchapter unless the division has approved the rule under this
8686 section.
8787 (e) The division shall, for each proposed rule submitted
8888 under this subchapter, provide to the state agency and make
8989 available to the public an explanation of the division's reasons
9090 for approving or rejecting the rule, including a discussion of the
9191 division's determination regarding the consistency of the rule with
9292 applicable state policy.
9393 (f) The division may initiate a review of a proposed rule
9494 that was not submitted for review under this subchapter if the
9595 division has reason to believe that the proposed rule may have an
9696 anticompetitive market effect. A state agency may not finally
9797 adopt or implement a proposed rule for which the division has
9898 initiated a review under this subsection unless the division
9999 approves the rule in accordance with this section.
100100 Sec. 57.106. RULEMAKING AUTHORITY. The division may adopt
101101 rules to carry out this subchapter.
102102 SECTION 5. This Act takes effect September 1, 2019.