By: Leach (Senate Sponsor - Middleton) H.B. No. 2266
(In the Senate - Received from the House May 12, 2023;
May 12, 2023, read first time and referred to Committee on Business &
Commerce; May 21, 2023, reported favorably by the following vote:
Yeas 6, Nays 4, one present not voting; May 21, 2023, sent to
printer.)
Click here to see the committee vote
COMMITTEE VOTE
YeaNayAbsentPNV
SchwertnerX
KingX
BirdwellX
CampbellX
CreightonX
JohnsonX
KolkhorstX
MenéndezX
MiddletonX
NicholsX
ZaffiriniX
A BILL TO BE ENTITLED
AN ACT
relating to judicial review of certain local laws applicable to
state license holders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Regulations with
Economic Impact in Need of Scrutiny (REINS) Act.
SECTION 2. The purpose of this Act is to provide a judicial
remedy to ensure that a state license holder has the right to engage
in an occupation or business activity authorized by and regulated
under state law without burdensome or inconsistent local regulation
of the state license holder's occupation or lawful business
activities.
SECTION 3. Title 2, Occupations Code, is amended by adding
Chapter 60 to read as follows:
CHAPTER 60. JUDICIAL REVIEW OF CERTAIN LOCAL LAWS AFFECTING
LICENSE HOLDERS
Sec. 60.001. DEFINITIONS. In this chapter:
(1) "Local law" means an ordinance, rule, regulation,
or other measure adopted by the governing body of a municipality
that establishes requirements for, imposes restrictions on, or
otherwise regulates the occupation or business activity of a
license holder within the municipality or the municipality's
extraterritorial jurisdiction.
(2) "License holder" means an individual or entity
that, under state law, in order to practice the individual's
occupation or conduct the entity's business in this state, is
required to obtain a license, permit, registration certificate, or
other evidence of authority from, and is subject to regulation by, a
state licensing authority.
(3) "State licensing authority" means a state agency,
department, board, or commission or the executive or administrative
officer of a state agency, department, board, or commission that
issues a license, permit, registration certificate, or other
evidence of authority to an individual or entity authorizing the
individual to practice the individual's occupation or the entity to
conduct the entity's business in this state.
Sec. 60.002. SUIT TO ENJOIN ENFORCEMENT OF CERTAIN LOCAL
LAWS AFFECTING LICENSE HOLDERS. (a) A license holder subject to a
local law may bring an action under this section to enjoin the
enforcement of the local law if the local law:
(1) establishes requirements for, imposes
restrictions on, or otherwise regulates the occupation or business
activity of the license holder in a manner that is more stringent
than the requirements, restrictions, or regulations imposed on the
license holder under state law; or
(2) would result in an adverse economic impact on the
license holder.
(b) A license holder must bring the action in a district
court in:
(1) a county that includes any territory of the
municipality that adopted the local law; or
(2) Travis County.
(c) The license holder bringing the action under this
section must show by a preponderance of the evidence that the local
law is a local law described by Subsection (a). The license holder
may provide evidence regarding the adverse economic impact of
similar local laws in other jurisdictions inside or outside of this
state.
(d) If the license holder satisfies the burden of proof
required by Subsection (c), the municipality defending the action
has the burden of establishing by clear and convincing evidence
that the local law:
(1) does not conflict with state law; and
(2) is necessary and narrowly tailored to protect
against actual and specific harm to the public's health or safety.
(e) The court may grant any prohibitory or mandatory relief
warranted by the facts, including a temporary restraining order,
temporary injunction, or permanent injunction.
(f) If the license holder prevails in the action, the court
shall award to the license holder court costs and reasonable and
necessary attorney's fees to be paid by the municipality defending
the action.
(g) This section does not apply to a local law that
establishes requirements for, imposes restrictions on, or
otherwise regulates:
(1) a sexually oriented business under Chapter 243,
Local Government Code;
(2) a massage parlor as defined by Section 234.101,
Local Government Code; or
(3) any conduct under Chapter 393, Finance Code, and
any conduct related to a credit services organization, as defined
by Section 393.001, Finance Code, or a credit access business, as
defined by Section 393.601, Finance Code, if the local law:
(A) was adopted before January 1, 2023; and
(B) would have been valid under the law as it
existed before the date this chapter was enacted.
(h) Notwithstanding any other provision of this section:
(1) a license holder may not bring an action under this
section against a municipality if the license holder is an employee
of the municipality; and
(2) an association of municipal employees who are
license holders may not bring an action under this section if the
action relates to a local law governing the working conditions of
those employees.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.
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