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