By: Harrison H.B. No. 2690

A BILL TO BE ENTITLED

AN ACT

relating to governmental restrictions on the right to earn a living.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle H, Title 10, Government Code, is amended by adding Chapter 2402 to read as follows:

CHAPTER 2402. PROTECTION OF RIGHT TO EARN LIVING

Sec. 2402.001. DEFINITIONS. In this chapter:

(1) "Governmental agency" means:

(A) this state or a political subdivision of this state; and

(B) an agency of this state or of a political subdivision of this state, including a department, bureau, board, commission, office, council, or public institution of higher education.

(2) "Public official" means an elected or appointed officer, employee, or agent of this state or of a political subdivision, board, commission, bureau, or other public body established by law.

(3) "Welfare" means protection of the public against fraud or physical or psychological harm. The term does not include the protection of a business from competition.

Sec. 2402.002. APPLICABILITY OF CHAPTER. (a) This chapter applies to any law adopted by a governmental agency and the implementation of that law, regardless of the date the law was adopted.

(b) This chapter applies to each law of this state unless the law is expressly made exempt from the application of this chapter by reference to this chapter.

Sec. 2402.003. RIGHT TO EARN LIVING PROTECTED. A governmental agency or public official may not adopt or enforce a law or other measure that imposes a burden on an individual's right to earn a living unless the agency or official demonstrates that:

(1) the law or measure is necessary to protect public health, safety, or welfare;

(2) the law or measure is the least restrictive means of furthering that interest; and

(3) alternative means, including voluntary certification or less restrictive regulatory measures, are not able to achieve that interest without unnecessarily restricting entry into the regulated business, profession, occupation, or trade.

Sec. 2402.004. CLAIM FOR RELIEF. (a) If a governmental agency or public official has violated or there are reasonable grounds to believe the agency or official is about to violate Section 2402.003, the person aggrieved by the violation or threatened violation may bring an action against the agency or official in accordance with this section.

(b) A person has standing to bring an action under this section regardless of whether the person applied for, obtained, or was denied the occupational license or certification that is the subject of the violation that is the basis for the action if the person:

(1) intends to engage in the business, profession, occupation, or trade that is the subject of the violation that is the basis for the action; and

(2) is hindered from engaging in the business, profession, occupation, or trade by the violation that is the basis for the action.

(c) A person whose right to earn a living has been burdened in violation of this Section, other than a governmental agency or public official, in an action brought under this section is entitled to recover:

(1) appropriate equitable relief;

(2) nominal damages of $1; and

(3) reasonable attorney's fees, court costs, and other reasonable expenses incurred in bringing the action.

Sec. 2402.005. DEFENSE. A person whose free exercise of the right to earn a living has been burdened in violation of Section 2402.003 may assert that violation as a defense in a judicial or administrative proceeding enforcing the law or measure that is the basis of the violation regardless of whether the proceeding is brought in the name of the state or by any other person.

Sec. 2402.006. IMMUNITY WAIVED. A governmental agency's sovereign and governmental immunity to suit and from liability is waived to the extent of liability created by Section 2402.004. Official immunity of a public official is waived to the extent of liability created by Section 2402.004.

Sec. 2402.007. ACTION AND DEFENSE CUMULATIVE. An action or defense provided by this chapter is cumulative with any other action or defense provided by law.

Sec. 2402.008. CONSTRUCTION OF CHAPTER. This chapter may not be construed to authorize a governmental agency or public official to burden a person's free exercise of the right to earn a living.

SECTION 2. (a) Section 2402.004, Government Code, as added by this Act, applies only to a cause of action that accrues on or after the effective date of this Act.

(b) Section 2402.005, Government Code, as added by this Act, applies only to a proceeding that commences on or after the effective date of this Act.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.