85R6946 MAW-F
 
  By: Huffines S.B. No. 844
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the active supervision of occupational licensing
  authorities by the attorney general.
         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. ACTIVE SUPERVISION OF OCCUPATIONAL LICENSING
  AUTHORITIES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 2.001.  DEFINITIONS. In this chapter:
               (1)  "Certificate" means a voluntary, nontransferable
  recognition issued by a private organization or licensing authority
  authorizing an individual, after meeting the established personal
  qualifications of the organization or authority, to use the term
  "certified" in describing the individual's occupation.
               (2)  "License" means a nontransferable authorization
  issued by a licensing authority authorizing an individual, after
  meeting the established personal qualifications, to engage in a
  particular occupation.
               (3)  "Licensing authority" means a department,
  commission, board, office, or other agency of the state that issues
  a license, specialty occupational license for medical
  reimbursement, registration, certificate, permit, or other
  authorization related to an occupation. 
               (4)  "Personal qualifications" means criteria related
  to an individual's personal background, credentials, and
  characteristics that are required to obtain a certificate,
  specialty occupational license for medical reimbursement, or
  license, including:
                     (A)  educational attainment;
                     (B)  passage of an examination;
                     (C)  work experience;
                     (D)  character; and
                     (E)  criminal history.
               (5)  "Registration" means a nontransferable
  recognition issued by a licensing authority authorizing an
  individual who provides notice to the authority of the individual's
  name and address and of the nature of the service offered before
  engaging in a particular occupation to use the term "registered" in
  describing the individual's occupation.
               (6)  "Specialty occupational license for medical
  reimbursement" means a voluntary, nontransferable, and
  nonexclusive 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.
         Sec. 2.002.  TYPES OF REGULATION. In determining the least
  restrictive regulation for purposes of this chapter, 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)  existence of a specific private cause of action to
  remedy a consumer harm;
               (5)  a law prohibiting deceptive trade practices;
               (6)  a restriction on the process of providing a
  specific good or service to a consumer;
               (7)  inspection requirements;
               (8)  a requirement that an individual obtain a bond or
  insurance;
               (9)  a statute, rule, or policy requiring registration
  with a licensing authority;
               (10)  a statute, rule, or policy requiring
  certification by a licensing authority;
               (11)  a specialty occupational license for medical
  reimbursement; and
               (12)  a statute, rule, or policy requiring licensing by
  a licensing authority.
         Sec. 2.003.  POLICY. It is the policy of this state:
               (1)  to recognize the fundamental right of an
  individual to pursue an occupation;
               (2)  to increase economic opportunities, promote
  competition, and encourage innovation in this state;
               (3)  when necessary to displace market competition, to
  use the least restrictive means of regulation necessary to protect
  consumers from existing, significant, and substantiated harms that
  threaten public health and safety; and
               (4)  to enforce occupational regulations against an
  individual only to the extent the individual sells or provides
  goods or services that are explicitly included in the law that
  defines the occupation's scope of practice. 
  SUBCHAPTER B. ATTORNEY GENERAL SUPERVISION
         Sec. 2.051.  ACTIVE SUPERVISION BY ATTORNEY GENERAL. (a) To
  ensure that a statute is construed to comply with, and a rule or
  policy of a licensing authority complies with, the policy described
  by Section 2.003, the attorney general shall actively supervise
  each licensing authority.
         (b)  In actively supervising a licensing authority, the
  attorney general shall:
               (1)  participate in the development of the authority's
  rules and policies to ensure the rules and policies benefit
  consumers and do not serve the private interests of individuals
  regulated by the authority;
               (2)  review the proposed rules, policies, and
  enforcement actions of the authority; and
               (3)  take action under Section 2.052 with regard to
  each proposed rule, policy, and action.
         (c)  In fulfilling the duties under this section, the
  attorney general shall study issues relevant to the attorney
  general's duties under this chapter, including issues related to
  antitrust litigation and methods for regulating occupations using
  the least restrictive regulations possible.
         Sec. 2.052.  SUBMISSION TO ATTORNEY GENERAL; ACTION BY
  ATTORNEY GENERAL REQUIRED. (a) A licensing authority must submit
  any proposed rule, policy, or enforcement action to the attorney
  general for review before the rule, policy, or action is adopted or
  implemented.
         (b)  The attorney general shall approve a rule, policy, or
  enforcement action submitted under Subsection (a) if the attorney
  general determines the rule, policy, or action complies with the
  policy described by Section 2.003. The attorney general shall
  reject any rule, policy, or action that does not comply with the
  policy described by Section 2.003.
         (c)  A proposed rule, policy, or enforcement action of a
  licensing authority may not be finally adopted or implemented
  unless the rule, policy, or action is explicitly approved by the
  attorney general under Subsection (b). The attorney general's
  failure to respond to a rule, policy, or action that is submitted to
  the attorney general does not constitute approval of the rule,
  policy, or action.
         (d)  A licensing authority may not finally adopt or implement
  any rule, policy, or enforcement action that has been rejected by
  the attorney general under Subsection (b).
         Sec. 2.053.  COMPLAINTS. (a) The attorney general shall
  investigate a complaint submitted to the attorney general that
  alleges a licensing authority's rule, policy, or enforcement action
  is not in compliance with the policy described by Section 2.003.
         (b)  Not later than the 90th day after the date a complaint is
  received, the attorney general shall:
               (1)  investigate the complaint;
               (2)  identify actions necessary to resolve the
  complaint and, if appropriate, direct the licensing authority
  subject to the complaint to take those actions; and
               (3)  notify the complainant of the outcome of the
  investigation and the disposition of the complaint.
         (c)  Chapter 2001, Government Code, does not apply to the
  disposition of a complaint under this section.
         Sec. 2.054.  REVIEW OF ACTION. The governor, the lieutenant
  governor, or a member of the legislature may request that the
  attorney general review:
               (1)  a rule, policy, or enforcement action of a
  licensing authority for compliance with the policy described by
  Section 2.003; or
               (2)  a prior action of the attorney general under this
  chapter.
         Sec. 2.055.  ESTABLISHMENT OF DIVISION. The attorney
  general may establish a division to actively supervise licensing
  authorities as provided by this chapter and employ staff to carry
  out the duties of this chapter, including employing one or more
  attorneys who do not provide general counsel to any licensing
  authority or exercise control over an authority other than the
  supervision required by this chapter.
         SECTION 2.  Not later than December 1, 2018, the attorney
  general shall:
               (1)  review all rules, policies, and enforcement
  actions of a licensing authority, as defined by Section 2.001,
  Occupations Code, as added by this Act, that are in effect or
  ongoing on the effective date of this Act; and
               (2)  provide a notice to each licensing authority that:
                     (A)  identifies each rule, policy, or action of
  the authority that is not in compliance with the policy described by
  Section 2.003, Occupations Code, as added by this Act; and
                     (B)  directs the authority to amend the rule or
  policy or terminate the action, as applicable, to comply with the
  policy described by Section 2.003, Occupations Code, as added by
  this Act.
         SECTION 3.  This Act takes effect September 1, 2017.