1 | 1 | | 89R1290 RDR-F |
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2 | 2 | | By: Curry H.B. No. 3838 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to limitations on the enforcement of certain occupational |
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10 | 10 | | regulations. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Title 1, Occupations Code, is amended by adding |
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13 | 13 | | Chapter 2 to read as follows: |
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14 | 14 | | CHAPTER 2. LIMITATION ON ENFORCEMENT OF CERTAIN OCCUPATIONAL |
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15 | 15 | | REGULATIONS |
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16 | 16 | | SUBCHAPTER A. GENERAL PROVISIONS |
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17 | 17 | | Sec. 2.001. DEFINITIONS. In this chapter: |
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18 | 18 | | (1) "License" means a nontransferable and exclusive |
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19 | 19 | | authorization issued by a licensing authority authorizing an |
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20 | 20 | | individual, based on the established personal qualifications, to |
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21 | 21 | | engage in a particular occupation. |
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22 | 22 | | (2) "Licensing authority" means a department, |
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23 | 23 | | commission, board, office, or other agency of this state or a |
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24 | 24 | | political subdivision of this state that issues a license, |
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25 | 25 | | specialty occupational license for medical reimbursement, |
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26 | 26 | | registration, certificate, permit, or other authorization related |
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27 | 27 | | to an occupation. |
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28 | 28 | | (3) "Occupational regulation" means any regulation, |
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29 | 29 | | rule, policy, fee, condition, test, permit, administrative |
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30 | 30 | | practice, or other provision in which a licensing authority |
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31 | 31 | | establishes the personal qualifications necessary to engage in any |
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32 | 32 | | occupation or profession. The term does not include a license. |
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33 | 33 | | (4) "Personal qualifications" means criteria related |
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34 | 34 | | to an individual's personal background and characteristics related |
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35 | 35 | | to eligibility for a license including: |
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36 | 36 | | (A) educational attainment; |
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37 | 37 | | (B) passage of an examination; |
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38 | 38 | | (C) work experience; |
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39 | 39 | | (D) character; and |
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40 | 40 | | (E) criminal history. |
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41 | 41 | | (5) "Specialty occupational license for medical |
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42 | 42 | | reimbursement" means a nontransferable authorization to perform a |
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43 | 43 | | medical service that is: |
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44 | 44 | | (A) required for an individual to be eligible to |
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45 | 45 | | receive payment or reimbursement from a governmental agency or |
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46 | 46 | | other entity for providing medical services; and |
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47 | 47 | | (B) issued by a licensing authority to an |
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48 | 48 | | individual who meets the established personal qualifications. |
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49 | 49 | | (6) "Welfare" means an action to protect the public |
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50 | 50 | | against fraud or harm. The term does not include an action to |
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51 | 51 | | protect an existing public or private entity against competition. |
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52 | 52 | | Sec. 2.002. POLICY. It is the policy of this state that all |
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53 | 53 | | occupational regulations must be limited to those demonstrably |
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54 | 54 | | necessary and carefully tailored to fulfill legitimate public |
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55 | 55 | | health, safety, and welfare objectives. |
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56 | 56 | | Sec. 2.003. REVIEW REQUIRED. (a) Not later than September |
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57 | 57 | | 1, 2026, each licensing authority shall conduct a comprehensive |
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58 | 58 | | review of each occupational regulation applicable to a license |
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59 | 59 | | issued by the authority and for each occupational regulation: |
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60 | 60 | | (1) specify the public health, safety, or welfare |
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61 | 61 | | objective served by the regulation and the reason the regulation is |
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62 | 62 | | necessary to serve each objective; |
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63 | 63 | | (2) analyze, based on any available information, the |
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64 | 64 | | effects of the regulation on: |
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65 | 65 | | (A) opportunities for workers; |
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66 | 66 | | (B) consumer choices and costs; |
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67 | 67 | | (C) general unemployment; |
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68 | 68 | | (D) market competition; |
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69 | 69 | | (E) governmental costs; and |
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70 | 70 | | (F) other related measures; and |
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71 | 71 | | (3) compare the regulation with how the applicable |
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72 | 72 | | business or profession is regulated in other states. |
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73 | 73 | | (b) A licensing authority shall for any occupational |
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74 | 74 | | regulation determined during a review under Subsection (a) to |
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75 | 75 | | violate the policy provided by Section 2.002: |
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76 | 76 | | (1) repeal the regulation or modify the regulation to |
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77 | 77 | | conform to the policy provided by Section 2.002, if the authority is |
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78 | 78 | | authorized by law to do so; or |
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79 | 79 | | (2) recommend that the legislature repeal the |
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80 | 80 | | regulation or take any other action necessary to modify the |
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81 | 81 | | regulation to conform to the policy provided by Section 2.002. |
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82 | 82 | | (c) Not later than December 1, 2026, each licensing |
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83 | 83 | | authority shall submit to the legislature a report summarizing any |
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84 | 84 | | actions taken by the authority under Subsection (b)(1) and any |
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85 | 85 | | recommendations made under Subsection (b)(2). |
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86 | 86 | | (d) This section expires September 1, 2027. |
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87 | 87 | | SUBCHAPTER B. ENFORCEMENT |
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88 | 88 | | Sec. 2.051. PETITION FOR REPEAL OR MODIFICATION. (a) A |
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89 | 89 | | person may petition a licensing authority to repeal or modify an |
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90 | 90 | | occupational regulation applicable to a license issued by the |
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91 | 91 | | authority if the regulation violates the policy provided by Section |
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92 | 92 | | 2.002. |
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93 | 93 | | (b) Not later than the 90th day after the date a licensing |
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94 | 94 | | authority receives a petition under Subsection (a), the authority |
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95 | 95 | | shall: |
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96 | 96 | | (1) repeal the regulation; |
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97 | 97 | | (2) modify the regulation to conform to the policy |
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98 | 98 | | provided by Section 2.002; |
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99 | 99 | | (3) state the reasons the authority has determined |
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100 | 100 | | that the regulation does not violate the policy provided by Section |
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101 | 101 | | 2.002; or |
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102 | 102 | | (4) notify the petitioner that the authority is not |
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103 | 103 | | authorized under law to repeal or modify the regulation. |
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104 | 104 | | Sec. 2.052. INJUNCTIVE RELIEF. (a) A person may bring an |
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105 | 105 | | action for an injunction against the enforcement of an occupational |
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106 | 106 | | regulation in a district court in Travis County or any county in |
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107 | 107 | | which the regulation is enforced. |
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108 | 108 | | (b) A person is entitled to relief from an occupational |
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109 | 109 | | regulation if the court finds by a preponderance of evidence that |
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110 | 110 | | the occupational regulation on its face or in its effect burdens the |
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111 | 111 | | entry into a profession or occupation and: |
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112 | 112 | | (1) the licensing authority is unable to prove by a |
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113 | 113 | | preponderance of evidence that the regulation is not demonstrably |
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114 | 114 | | necessary and carefully tailored to fulfill legitimate public |
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115 | 115 | | health, safety, or welfare objectives; or |
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116 | 116 | | (2) if the regulation is necessary to the legitimate |
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117 | 117 | | public health, safety, or welfare objectives as demonstrated under |
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118 | 118 | | Subdivision (1), the objective can be effectively served by using a |
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119 | 119 | | less restrictive regulation that is less burdensome to economic |
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120 | 120 | | opportunity. |
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121 | 121 | | (c) In determining whether an occupational regulation is |
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122 | 122 | | less restrictive for purposes of Subsection (b)(2), the following |
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123 | 123 | | list represents regulations from least restrictive to most |
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124 | 124 | | restrictive: |
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125 | 125 | | (1) market competition; |
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126 | 126 | | (2) ratings or reviews from consumers or third |
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127 | 127 | | parties; |
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128 | 128 | | (3) private certification; |
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129 | 129 | | (4) voluntary bonding or insurance; |
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130 | 130 | | (5) existence of a specific private cause of action to |
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131 | 131 | | remedy a consumer harm; |
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132 | 132 | | (6) a law prohibiting deceptive trade practices; |
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133 | 133 | | (7) a requirement for mandatory disclosure to a |
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134 | 134 | | consumer of attributes of a specific good or service; |
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135 | 135 | | (8) a restriction on the process of providing a |
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136 | 136 | | specific good or service to a consumer; |
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137 | 137 | | (9) inspection requirements; |
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138 | 138 | | (10) a requirement that an individual obtain a bond or |
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139 | 139 | | insurance; |
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140 | 140 | | (11) a statute, rule, or policy requiring registration |
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141 | 141 | | with a licensing authority; |
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142 | 142 | | (12) a statute, rule, or policy requiring |
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143 | 143 | | certification by a licensing authority; |
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144 | 144 | | (13) a specialty occupational license for medical |
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145 | 145 | | reimbursement; and |
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146 | 146 | | (14) a statute, rule, or policy requiring licensing by |
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147 | 147 | | a licensing authority. |
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148 | 148 | | (d) The court shall award to a plaintiff who prevails under |
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149 | 149 | | this section reasonable attorney's fees and costs. |
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150 | 150 | | SECTION 2. This Act takes effect September 1, 2025. |
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