Harrison Bill Lets Anyone Challenge Job-Licensing Rules, With 90-Day Answers

The text as introduced · 1,028 words

89R1290 RDR-F

By: Harrison
H.B. No. 794

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, 2026, 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, 2026, 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, 2027.

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, 2025.