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