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A BILL TO BE ENTITLED
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AN ACT
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relating to the review of certain occupational licensing rules by |
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the office of the governor. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 57, Occupations Code, is amended by |
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designating Section 57.001 as Subchapter A and adding a subchapter |
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heading to read as follows: |
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SUBCHAPTER A. GENERAL PROVISIONS |
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SECTION 2. Chapter 57, Occupations Code, is amended by |
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adding Subchapter B, and a heading is added to that subchapter to |
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read as follows: |
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SUBCHAPTER B. GOVERNING BOARD MEMBERSHIP |
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SECTION 3. Section 57.002, Occupations Code, is transferred |
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to Subchapter B, Chapter 57, Occupations Code, as added by this Act, |
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and redesignated as Section 57.051, Occupations Code, to read as |
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follows: |
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Sec. 57.051 [57.002]. REQUIREMENTS FOR GOVERNING BOARD |
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MEMBERSHIP. A person may not be required to be a member of a private |
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trade association as a precondition to serving as a member of the |
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governing board of a state agency that issues a license or otherwise |
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regulates a business, occupation, or profession. |
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SECTION 4. Chapter 57, Occupations Code, is amended by |
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adding Subchapter C to read as follows: |
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SUBCHAPTER C. REVIEW OF STATE AGENCY RULES |
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Sec. 57.101. DEFINITION. In this subchapter, "division" |
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means the division of the governor's office established under this |
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subchapter. |
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Sec. 57.102. APPLICABILITY. This subchapter applies only |
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to a state agency with a governing board that is controlled by |
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persons who provide services that are regulated by the agency. |
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Sec. 57.103. ESTABLISHMENT OF DIVISION. (a) The governor |
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shall: |
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(1) establish a division to review state agency rules |
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in accordance with this subchapter; and |
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(2) appoint a director for the division to serve at the |
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pleasure of the governor. |
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(b) The director must be licensed to practice law in this |
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state and have experience in antitrust law. |
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Sec. 57.104. SUBMISSION OF CERTAIN STATE AGENCY RULES. (a) |
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A state agency that issues a license must submit any proposed rule |
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affecting market competition in this state relating to the |
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business, occupation, or profession for which a license is issued |
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to the division for review before the rule is adopted or |
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implemented. A state agency that issues a license must also submit |
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to the division for review any rule that the agency is considering |
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for readoption under Section 2001.039, Government Code, if the rule |
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affects market competition as described by this section. |
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(b) The state agency must include with the submission a |
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statement of the purpose for the proposed rule, copies of all |
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administrative records regarding the proposed rule, including any |
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information or comments the agency received from the public, and |
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any other information required by the division. |
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(c) For purposes of this section, a rule affects market |
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competition if the rule would, if implemented or readopted: |
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(1) create a barrier to market participation in this |
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state; or |
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(2) result in higher prices or reduced competition for |
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a product or service provided by a license holder in this state. |
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Sec. 57.105. REVIEW BY DIVISION. (a) The division shall |
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conduct a thorough, independent review of each proposed rule |
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submitted under Section 57.104 to determine: |
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(1) if the effect of the proposed rule on market |
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competition is consistent with applicable state policy; and |
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(2) whether the proposed rule promotes a clearly |
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articulated and affirmatively expressed policy as established by |
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the legislature to displace competition with government action. |
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(b) In conducting the review, the division may: |
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(1) request information from the state agency; |
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(2) require the state agency to conduct an analysis of |
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possible implications of the rule; |
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(3) solicit public comments; or |
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(4) hold public hearings. |
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(c) After review, the division shall: |
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(1) approve the proposed rule; or |
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(2) reject the proposed rule and return the rule to the |
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state agency with instructions for revising the rule to be |
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consistent with applicable state policy. |
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(d) A state agency may not finally adopt or implement a |
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proposed rule required to be submitted for review under this |
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subchapter unless the division has approved the rule under this |
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section. |
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(e) The division shall, for each proposed rule submitted |
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under this subchapter, provide to the state agency and make |
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available to the public an explanation of the division's reasons |
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for approving or rejecting the rule, including a discussion of the |
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division's determination regarding the consistency of the rule with |
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applicable state policy. |
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(f) The division may initiate a review of a proposed rule |
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that was not submitted for review under this subchapter if the |
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division has reason to believe that the proposed rule may have an |
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anticompetitive market effect. A state agency may not finally |
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adopt or implement a proposed rule for which the division has |
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initiated a review under this subsection unless the division |
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approves the rule in accordance with this section. |
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Sec. 57.106. RULEMAKING AUTHORITY. The division may adopt |
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rules to carry out this subchapter. |
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SECTION 5. This Act takes effect September 1, 2019. |