88R12974 MAW-F
 
  By: Harrison H.B. No. 3714
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to limitations on the enforcement of certain occupational
  regulations.
         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.  LIMITATION ON ENFORCEMENT OF CERTAIN OCCUPATIONAL
  REGULATIONS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 2.001.  DEFINITIONS.  In this chapter:
               (1)  "License" means a nontransferable and exclusive
  authorization issued by a licensing authority authorizing an
  individual, based on the established personal qualifications, to
  engage in a particular occupation.
               (2)  "Licensing authority" means a department,
  commission, board, office, or other agency of this state or a
  political subdivision of this state that issues a license,
  specialty occupational license for medical reimbursement,
  registration, certificate, permit, or other authorization related
  to an occupation.
               (3)  "Occupational regulation" means any regulation,
  rule, policy, fee, condition, test, permit, administrative
  practice, or other provision in which a licensing authority
  establishes the personal qualifications necessary to engage in any
  occupation or profession. The term does not include a license.
               (4)  "Personal qualifications" means criteria related
  to an individual's personal background and characteristics related
  to eligibility for a license including:
                     (A)  educational attainment;
                     (B)  passage of an examination;
                     (C)  work experience;
                     (D)  character; and
                     (E)  criminal history.
               (5)  "Specialty occupational license for medical
  reimbursement" means a nontransferable 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.
               (6)  "Welfare" means an action to protect the public
  against fraud or harm. The term does not include an action to
  protect an existing public or private entity against competition.
         Sec. 2.002.  POLICY.  It is the policy of this state that all
  occupational regulations must be limited to those demonstrably
  necessary and carefully tailored to fulfill legitimate public
  health, safety, and welfare objectives.
         Sec. 2.003.  REVIEW REQUIRED. (a)  Not later than September
  1, 2024, each licensing authority shall conduct a comprehensive
  review of each occupational regulation applicable to a license
  issued by the authority and for each occupational regulation:
               (1)  specify the public health, safety, or welfare
  objective served by the regulation and the reason the regulation is
  necessary to serve each objective;
               (2)  analyze, based on any available information, the
  effects of the regulation on:
                     (A)  opportunities for workers;
                     (B)  consumer choices and costs;
                     (C)  general unemployment;
                     (D)  market competition;
                     (E)  governmental costs; and 
                     (F)  other related measures; and
               (3)  compare the regulation with how the applicable
  business or profession is regulated in other states.
         (b)  A licensing authority shall for any occupational
  regulation determined during a review under Subsection (a) to
  violate the policy provided by Section 2.002:
               (1)  repeal the regulation or modify the regulation to
  conform to the policy provided by Section 2.002, if the authority is
  authorized by law to do so; or
               (2)  recommend that the legislature repeal the
  regulation or take any other action necessary to modify the
  regulation to conform to the policy provided by Section 2.002.
         (c)  Not later than December 1, 2024, each licensing
  authority shall submit to the legislature a report summarizing any
  actions taken by the authority under Subsection (b)(1) and any
  recommendations made under Subsection (b)(2).
         (d)  This section expires September 1, 2025.
  SUBCHAPTER B. ENFORCEMENT
         Sec. 2.051.  PETITION FOR REPEAL OR MODIFICATION. (a) A
  person may petition a licensing authority to repeal or modify an
  occupational regulation applicable to a license issued by the
  authority if the regulation violates the policy provided by Section
  2.002.
         (b)  Not later than the 90th day after the date a licensing
  authority receives a petition under Subsection (a), the authority
  shall:
               (1)  repeal the regulation;
               (2)  modify the regulation to conform to the policy
  provided by Section 2.002; 
               (3)  state the reasons the authority has determined
  that the regulation does not violate the policy provided by Section
  2.002; or
               (4)  notify the petitioner that the authority is not
  authorized under law to repeal or modify the regulation.
         Sec. 2.052.  INJUNCTIVE RELIEF. (a)  A person may bring an
  action for an injunction against the enforcement of an occupational
  regulation in a district court in Travis County or any county in
  which the regulation is enforced.
         (b)  A person is entitled to relief from an occupational
  regulation if the court finds by a preponderance of evidence that
  the occupational regulation on its face or in its effect burdens the
  entry into a profession or occupation and:
               (1)  the licensing authority is unable to prove by a
  preponderance of evidence that the regulation is not demonstrably
  necessary and carefully tailored to fulfill legitimate public
  health, safety, or welfare objectives; or
               (2)  if the regulation is necessary to the legitimate
  public health, safety, or welfare objectives as demonstrated under
  Subdivision (1), the objective can be effectively served by using a
  less restrictive regulation that is less burdensome to economic
  opportunity.
         (c)  In determining whether an occupational regulation is
  less restrictive for purposes of Subsection (b)(2), 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)  voluntary bonding or insurance;
               (5)  existence of a specific private cause of action to
  remedy a consumer harm;
               (6)  a law prohibiting deceptive trade practices;
               (7)  a requirement for mandatory disclosure to a
  consumer of attributes of a specific good or service;
               (8)  a restriction on the process of providing a
  specific good or service to a consumer;
               (9)  inspection requirements;
               (10)  a requirement that an individual obtain a bond or
  insurance;
               (11)  a statute, rule, or policy requiring registration
  with a licensing authority;
               (12)  a statute, rule, or policy requiring
  certification by a licensing authority;
               (13)  a specialty occupational license for medical
  reimbursement; and
               (14)  a statute, rule, or policy requiring licensing by
  a licensing authority.
         (d)  The court shall award to a plaintiff who prevails under
  this section reasonable attorney's fees and costs.
         SECTION 2.  This Act takes effect September 1, 2023.