| 1 | 1 | | 2019S0348-1 03/05/19 |
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| 2 | 2 | | By: Campbell S.B. No. 1851 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to judicial review of certain regulations that apply to |
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| 8 | 8 | | state licensees. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. This Act may be cited as the Regulations with |
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| 11 | 11 | | Economic Impact in Need of Scrutiny (REINS) Act. |
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| 12 | 12 | | SECTION 2. Title 2, Occupations Code, is amended by adding |
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| 13 | 13 | | Chapter 60 to read as follows: |
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| 14 | 14 | | CHAPTER 60. REGULATIONS WITH ECONOMIC IMPACT IN NEED OF SCRUTINY |
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| 15 | 15 | | Sec. 60.001. PURPOSE OF CHAPTER. It is the purpose of this |
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| 16 | 16 | | chapter to provide a judicial remedy to ensure that a state licensee |
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| 17 | 17 | | has the right to engage in an occupation or business activity |
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| 18 | 18 | | authorized by and regulated under state law without burdensome or |
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| 19 | 19 | | inconsistent local regulation of the state licensee's occupation or |
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| 20 | 20 | | lawful business activities. |
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| 21 | 21 | | Sec. 60.002. DEFINITIONS. In this chapter: |
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| 22 | 22 | | (1) "Local regulation" means any ordinance, rule, or |
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| 23 | 23 | | regulation adopted by the governing body of a municipality that |
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| 24 | 24 | | establishes requirements for, imposes restrictions on, or |
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| 25 | 25 | | otherwise regulates the business activity of a state licensee |
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| 26 | 26 | | within the municipality or the municipality's extraterritorial |
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| 27 | 27 | | jurisdiction. |
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| 28 | 28 | | (2) "State licensee" means a person or entity that, |
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| 29 | 29 | | under state law, in order to practice the person's occupation or |
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| 30 | 30 | | conduct the entity's business in this state, is required to obtain a |
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| 31 | 31 | | license, permit, registration certificate, or other evidence of |
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| 32 | 32 | | authority from, and is subject to regulation by, a state licensing |
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| 33 | 33 | | authority. |
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| 34 | 34 | | (3) "State licensing authority" means a state agency, |
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| 35 | 35 | | department, board, or commission or the executive or administrative |
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| 36 | 36 | | officer of a state agency, department, board, or commission. |
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| 37 | 37 | | Sec. 60.003. SUIT TO ENJOIN ENFORCEMENT OF LOCAL |
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| 38 | 38 | | REGULATION. (a) A suit to enjoin enforcement of a local |
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| 39 | 39 | | regulation may be brought by a state licensee that is subject to the |
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| 40 | 40 | | local regulation if the local regulation: |
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| 41 | 41 | | (1) establishes requirements for, imposes |
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| 42 | 42 | | restrictions on, or otherwise regulates the business activity of |
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| 43 | 43 | | the state licensee in a manner that is more stringent than the |
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| 44 | 44 | | requirements, restrictions, and regulations imposed on the state |
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| 45 | 45 | | licensee under state law; or |
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| 46 | 46 | | (2) would result in an adverse economic impact on the |
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| 47 | 47 | | state licensee. |
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| 48 | 48 | | (b) A suit under this chapter must be brought in a district |
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| 49 | 49 | | court: |
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| 50 | 50 | | (1) for a judicial district in which any portion of the |
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| 51 | 51 | | territory of the municipality that adopted the local regulation is |
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| 52 | 52 | | located; or |
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| 53 | 53 | | (2) in Travis County. |
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| 54 | 54 | | (c) In a suit under this chapter, the state licensee must |
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| 55 | 55 | | show by a preponderance of the evidence that the local regulation |
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| 56 | 56 | | substantially burdens the state licensee's right to engage in an |
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| 57 | 57 | | occupation authorized by and regulated under state law or would |
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| 58 | 58 | | result in an adverse economic impact on the state licensee. In a |
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| 59 | 59 | | suit under this chapter, the state licensee may submit evidence |
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| 60 | 60 | | regarding the adverse economic impact of similar local regulations |
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| 61 | 61 | | in other jurisdictions inside or outside the state. |
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| 62 | 62 | | (d) If the state licensee meets the preponderance of the |
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| 63 | 63 | | evidence burden required by Subsection (c), the municipality has |
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| 64 | 64 | | the burden of establishing by clear and convincing evidence that |
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| 65 | 65 | | the local regulation the municipality seeks to enforce: |
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| 66 | 66 | | (1) does not conflict with state law; and |
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| 67 | 67 | | (2) is necessary and narrowly tailored to protect |
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| 68 | 68 | | against actual and specific harm to the public health or safety. |
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| 69 | 69 | | (e) The district court may grant any prohibitory or |
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| 70 | 70 | | mandatory relief warranted by the facts, including a temporary |
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| 71 | 71 | | restraining order, temporary injunction, or permanent injunction. |
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| 72 | 72 | | (f) If a state licensee prevails in a suit brought under |
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| 73 | 73 | | this chapter, the court shall award the state licensee court costs |
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| 74 | 74 | | and reasonable and necessary attorney's fees to be paid by the |
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| 75 | 75 | | municipality. |
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| 76 | 76 | | SECTION 3. This Act takes effect immediately if it receives |
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| 77 | 77 | | a vote of two-thirds of all the members elected to each house, as |
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| 78 | 78 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 79 | 79 | | Act does not receive the vote necessary for immediate effect, this |
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| 80 | 80 | | Act takes effect September 1, 2019. |
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