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A BILL TO BE ENTITLED
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AN ACT
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relating to a biennial study regarding occupational licensing |
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requirements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 302, Labor Code, is |
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amended by adding Section 302.0191 to read as follows: |
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Sec. 302.0191. REPORT REGARDING OCCUPATIONAL LICENSING. |
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(a) In this section: |
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(1) "License" includes a certificate, registration, |
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permit, or other authorization that is issued by a licensing |
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authority. |
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(2) "Licensing authority" means a department, |
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commission, board, office, or other agency of the state that issues |
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a license. |
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(b) The commission shall biennially study and report on the |
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extent to which a requirement that a person must obtain a license to |
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engage in a particular business, occupation, or profession serves |
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as a barrier to entry into the workforce. The report must discuss |
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whether and to what extent license requirements affect unemployment |
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in this state. |
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(c) In preparing the report required by Subsection (b), the |
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commission shall: |
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(1) solicit input from interested parties, including |
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license holders and licensing authorities, and parties who favor |
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decreasing or repealing occupational licensing requirements; and |
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(2) for each license required by a licensing |
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authority: |
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(A) evaluate the costs associated with the |
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license requirement, with a focus on: |
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(i) unemployment; |
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(ii) competition within the occupation; and |
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(iii) associated increases in prices to |
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consumers of goods or services; |
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(B) conduct a risk analysis of the harm to |
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consumers in purchasing goods or services from practitioners in the |
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licensed occupation; |
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(C) consider the extent to which consumers are |
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adequately informed when making decisions related to the licensed |
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occupation; |
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(D) consider whether the occupation is capable of |
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regulating itself without governmental intervention; |
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(E) consider the availability and adequacy of |
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alternatives to licensing by the state, including nonexclusive |
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certifications or registrations provided by nongovernmental |
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entities; |
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(F) consider whether the license requirement |
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serves to protect existing practitioners; |
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(G) conduct a cost-benefit analysis to determine |
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if the social costs of the license requirement are justified by any |
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benefits to the public health, safety, or welfare; and |
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(H) consider the anticipated effect of repealing |
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the license requirement on: |
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(i) overall unemployment, including the |
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rate at which people seeking to enter the occupation or profession |
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are able to do so; and |
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(ii) workforce training costs incurred by |
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the state, community colleges, or career schools or colleges. |
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(d) The commission by rule shall establish a schedule for |
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the review of licenses under this section. The rules must require |
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that: |
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(1) the commission review each license required by a |
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licensing authority not more than once in a 10-year period; and |
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(2) the commission review approximately 20 percent of |
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the licenses during each biennium. |
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(e) On request of the commission, a licensing authority |
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shall provide information to the commission or otherwise assist the |
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commission in preparing the report. |
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(f) Not later than November 15 of each even-numbered year, |
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the commission shall: |
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(1) provide a copy of the report to: |
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(A) the governor; |
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(B) the lieutenant governor; |
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(C) the speaker of the house of representatives; |
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and |
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(D) each standing committee of the senate and |
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house of representatives having primary jurisdiction over matters |
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relating to occupational licensing; and |
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(2) make the report available to the public on the |
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commission's Internet website. |
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SECTION 2. This Act takes effect September 1, 2015. |