89R1290 RDR-F
By: Curry H.B. No. 3838
A BILL TO BE ENTITLED
AN ACT
relating to limitations on the enforcement of certain occupational
regulations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 1, Occupations Code, is amended by adding
Chapter 2 to read as follows:
CHAPTER 2. LIMITATION ON ENFORCEMENT OF CERTAIN OCCUPATIONAL
REGULATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2.001. DEFINITIONS. In this chapter:
(1) "License" means a nontransferable and exclusive
authorization issued by a licensing authority authorizing an
individual, based on the established personal qualifications, to
engage in a particular occupation.
(2) "Licensing authority" means a department,
commission, board, office, or other agency of this state or a
political subdivision of this state that issues a license,
specialty occupational license for medical reimbursement,
registration, certificate, permit, or other authorization related
to an occupation.
(3) "Occupational regulation" means any regulation,
rule, policy, fee, condition, test, permit, administrative
practice, or other provision in which a licensing authority
establishes the personal qualifications necessary to engage in any
occupation or profession. The term does not include a license.
(4) "Personal qualifications" means criteria related
to an individual's personal background and characteristics related
to eligibility for a license including:
(A) educational attainment;
(B) passage of an examination;
(C) work experience;
(D) character; and
(E) criminal history.
(5) "Specialty occupational license for medical
reimbursement" means a nontransferable authorization to perform a
medical service that is:
(A) required for an individual to be eligible to
receive payment or reimbursement from a governmental agency or
other entity for providing medical services; and
(B) issued by a licensing authority to an
individual who meets the established personal qualifications.
(6) "Welfare" means an action to protect the public
against fraud or harm. The term does not include an action to
protect an existing public or private entity against competition.
Sec. 2.002. POLICY. It is the policy of this state that all
occupational regulations must be limited to those demonstrably
necessary and carefully tailored to fulfill legitimate public
health, safety, and welfare objectives.
Sec. 2.003. REVIEW REQUIRED. (a) Not later than September
1, 2026, each licensing authority shall conduct a comprehensive
review of each occupational regulation applicable to a license
issued by the authority and for each occupational regulation:
(1) specify the public health, safety, or welfare
objective served by the regulation and the reason the regulation is
necessary to serve each objective;
(2) analyze, based on any available information, the
effects of the regulation on:
(A) opportunities for workers;
(B) consumer choices and costs;
(C) general unemployment;
(D) market competition;
(E) governmental costs; and
(F) other related measures; and
(3) compare the regulation with how the applicable
business or profession is regulated in other states.
(b) A licensing authority shall for any occupational
regulation determined during a review under Subsection (a) to
violate the policy provided by Section 2.002:
(1) repeal the regulation or modify the regulation to
conform to the policy provided by Section 2.002, if the authority is
authorized by law to do so; or
(2) recommend that the legislature repeal the
regulation or take any other action necessary to modify the
regulation to conform to the policy provided by Section 2.002.
(c) Not later than December 1, 2026, each licensing
authority shall submit to the legislature a report summarizing any
actions taken by the authority under Subsection (b)(1) and any
recommendations made under Subsection (b)(2).
(d) This section expires September 1, 2027.
SUBCHAPTER B. ENFORCEMENT
Sec. 2.051. PETITION FOR REPEAL OR MODIFICATION. (a) A
person may petition a licensing authority to repeal or modify an
occupational regulation applicable to a license issued by the
authority if the regulation violates the policy provided by Section
2.002.
(b) Not later than the 90th day after the date a licensing
authority receives a petition under Subsection (a), the authority
shall:
(1) repeal the regulation;
(2) modify the regulation to conform to the policy
provided by Section 2.002;
(3) state the reasons the authority has determined
that the regulation does not violate the policy provided by Section
2.002; or
(4) notify the petitioner that the authority is not
authorized under law to repeal or modify the regulation.
Sec. 2.052. INJUNCTIVE RELIEF. (a) A person may bring an
action for an injunction against the enforcement of an occupational
regulation in a district court in Travis County or any county in
which the regulation is enforced.
(b) A person is entitled to relief from an occupational
regulation if the court finds by a preponderance of evidence that
the occupational regulation on its face or in its effect burdens the
entry into a profession or occupation and:
(1) the licensing authority is unable to prove by a
preponderance of evidence that the regulation is not demonstrably
necessary and carefully tailored to fulfill legitimate public
health, safety, or welfare objectives; or
(2) if the regulation is necessary to the legitimate
public health, safety, or welfare objectives as demonstrated under
Subdivision (1), the objective can be effectively served by using a
less restrictive regulation that is less burdensome to economic
opportunity.
(c) In determining whether an occupational regulation is
less restrictive for purposes of Subsection (b)(2), the following
list represents regulations from least restrictive to most
restrictive:
(1) market competition;
(2) ratings or reviews from consumers or third
parties;
(3) private certification;
(4) voluntary bonding or insurance;
(5) existence of a specific private cause of action to
remedy a consumer harm;
(6) a law prohibiting deceptive trade practices;
(7) a requirement for mandatory disclosure to a
consumer of attributes of a specific good or service;
(8) a restriction on the process of providing a
specific good or service to a consumer;
(9) inspection requirements;
(10) a requirement that an individual obtain a bond or
insurance;
(11) a statute, rule, or policy requiring registration
with a licensing authority;
(12) a statute, rule, or policy requiring
certification by a licensing authority;
(13) a specialty occupational license for medical
reimbursement; and
(14) a statute, rule, or policy requiring licensing by
a licensing authority.
(d) The court shall award to a plaintiff who prevails under
this section reasonable attorney's fees and costs.
SECTION 2. This Act takes effect September 1, 2025.