BILL ANALYSIS

H.B. 86

By: Callegari

Government Efficiency & Reform

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The House Committee on Government Reform evaluated policy implications of the widespread licensing and regulation of professionals of Texas. In its interim report to the 81st Legislature, the committee's report found that occupational licensing programs administered by the state have grown to affect a significant portion of the state's workforce. Currently, Texas regulates more than 500 types of occupations, representing jobs held by several million Texans. Interested observers contend that Texas regulates a greater proportion of its workforce than the national average.

While some occupational licensing programs serve a compelling public interest, the committee found that the state's policy emphasis in favor of greater occupational regulation can have negative implications for the state's workforce and consumers. For instance, occupational licensing programs can restrict individuals' entry into regulated occupations, precluding some individuals from exercising a right to work. Furthermore, occupational licensing programs sometimes protect licensees from additional competition, limiting consumers' choices while increasing the prices for services rendered. In addition, the committee found that the growth in reliance on occupational licensing threatens to expand state government size, spending, and regulatory control over certain segments of the state's job market.

In light of the broad policy concerns regarding the state's proliferation of occupational licensing programs and the projected trend toward more occupational regulation in Texas, the committee identified two recommendations to address these problems. The first recommendation was to amend the Texas Sunset Act to enhance the Sunset Advisory Commission's reviews of existing occupational licensing programs administered by the state. The committee's second recommendation was to establish a sunrise process to evaluate the merits and need for proposed occupational licensing programs. H.B. 86 seeks to implement both of these recommendations.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 86 amends the Government Code, to require that the Sunset Advisory Commission and its staff (hereafter "Commission"), in an assessment of an agency that licenses an occupation or profession, to consider the following: whether the occupational licensing program serves a meaningful, defined public interest and provides the least restrictive form of regulation that will adequately protect the public interest; the extent to which the regulatory objective of the program may be achieved through market forces, private or industry certification and accreditation programs, or enforcement of other law; the extent to which licensing criteria, if applicable, ensure that applicants have occupational skill sets or competencies that correlate with a public interest and the impact that those criteria have on applicants, particularly those with moderate or low incomes, seeking to enter the occupation or profession; and the impact of the regulation, including the extent to which the program stimulates or restricts competition and affects consumer choice and the cost of services.

H.B. 86 authorizes a member of the legislature to submit to the Commission for review and analysis, not later than December 31 of an odd-numbered year, proposed legislation that would create an occupational licensing program or significantly affect an existing program. The bill authorizes the Commission's chair to deny such a request for review on the recommendation of the executive director. The bill requires the Commission to report its review findings to the legislature before the start of the next legislative session. The bill requires the Commission, in analyzing legislation proposing the creation of an occupational licensing program, to determine whether the unregulated practice of the occupation would be inconsistent with the public interest, whether the public can reasonably be expected to benefit from an assurance of initial and continuing professional skill sets or competencies, and whether the public can be more effectively protected by means other than state regulation. Defines "license," "public interest," and "welfare" for purposes of the bill's provisions relating to criteria for review of certain agencies.

EFFECTIVE DATE

September 1, 2013.