85R6946 MAW-F     By: Huffines S.B. No. 844       A BILL TO BE ENTITLED   AN ACT   relating to the active supervision of occupational licensing   authorities by the attorney general.          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. ACTIVE SUPERVISION OF OCCUPATIONAL LICENSING   AUTHORITIES   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 2.001.  DEFINITIONS. In this chapter:                (1)  "Certificate" means a voluntary, nontransferable   recognition issued by a private organization or licensing authority   authorizing an individual, after meeting the established personal   qualifications of the organization or authority, to use the term   "certified" in describing the individual's occupation.                (2)  "License" means a nontransferable authorization   issued by a licensing authority authorizing an individual, after   meeting the established personal qualifications, to engage in a   particular occupation.                (3)  "Licensing authority" means a department,   commission, board, office, or other agency of the state that issues   a license, specialty occupational license for medical   reimbursement, registration, certificate, permit, or other   authorization related to an occupation.                 (4)  "Personal qualifications" means criteria related   to an individual's personal background, credentials, and   characteristics that are required to obtain a certificate,   specialty occupational license for medical reimbursement, or   license, including:                      (A)  educational attainment;                      (B)  passage of an examination;                      (C)  work experience;                      (D)  character; and                      (E)  criminal history.                (5)  "Registration" means a nontransferable   recognition issued by a licensing authority authorizing an   individual who provides notice to the authority of the individual's   name and address and of the nature of the service offered before   engaging in a particular occupation to use the term "registered" in   describing the individual's occupation.                (6)  "Specialty occupational license for medical   reimbursement" means a voluntary, nontransferable, and   nonexclusive 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.          Sec. 2.002.  TYPES OF REGULATION. In determining the least   restrictive regulation for purposes of this chapter, 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)  existence of a specific private cause of action to   remedy a consumer harm;                (5)  a law prohibiting deceptive trade practices;                (6)  a restriction on the process of providing a   specific good or service to a consumer;                (7)  inspection requirements;                (8)  a requirement that an individual obtain a bond or   insurance;                (9)  a statute, rule, or policy requiring registration   with a licensing authority;                (10)  a statute, rule, or policy requiring   certification by a licensing authority;                (11)  a specialty occupational license for medical   reimbursement; and                (12)  a statute, rule, or policy requiring licensing by   a licensing authority.          Sec. 2.003.  POLICY. It is the policy of this state:                (1)  to recognize the fundamental right of an   individual to pursue an occupation;                (2)  to increase economic opportunities, promote   competition, and encourage innovation in this state;                (3)  when necessary to displace market competition, to   use the least restrictive means of regulation necessary to protect   consumers from existing, significant, and substantiated harms that   threaten public health and safety; and                (4)  to enforce occupational regulations against an   individual only to the extent the individual sells or provides   goods or services that are explicitly included in the law that   defines the occupation's scope of practice.    SUBCHAPTER B. ATTORNEY GENERAL SUPERVISION          Sec. 2.051.  ACTIVE SUPERVISION BY ATTORNEY GENERAL. (a) To   ensure that a statute is construed to comply with, and a rule or   policy of a licensing authority complies with, the policy described   by Section 2.003, the attorney general shall actively supervise   each licensing authority.          (b)  In actively supervising a licensing authority, the   attorney general shall:                (1)  participate in the development of the authority's   rules and policies to ensure the rules and policies benefit   consumers and do not serve the private interests of individuals   regulated by the authority;                (2)  review the proposed rules, policies, and   enforcement actions of the authority; and                (3)  take action under Section 2.052 with regard to   each proposed rule, policy, and action.          (c)  In fulfilling the duties under this section, the   attorney general shall study issues relevant to the attorney   general's duties under this chapter, including issues related to   antitrust litigation and methods for regulating occupations using   the least restrictive regulations possible.          Sec. 2.052.  SUBMISSION TO ATTORNEY GENERAL; ACTION BY   ATTORNEY GENERAL REQUIRED. (a) A licensing authority must submit   any proposed rule, policy, or enforcement action to the attorney   general for review before the rule, policy, or action is adopted or   implemented.          (b)  The attorney general shall approve a rule, policy, or   enforcement action submitted under Subsection (a) if the attorney   general determines the rule, policy, or action complies with the   policy described by Section 2.003. The attorney general shall   reject any rule, policy, or action that does not comply with the   policy described by Section 2.003.          (c)  A proposed rule, policy, or enforcement action of a   licensing authority may not be finally adopted or implemented   unless the rule, policy, or action is explicitly approved by the   attorney general under Subsection (b). The attorney general's   failure to respond to a rule, policy, or action that is submitted to   the attorney general does not constitute approval of the rule,   policy, or action.          (d)  A licensing authority may not finally adopt or implement   any rule, policy, or enforcement action that has been rejected by   the attorney general under Subsection (b).          Sec. 2.053.  COMPLAINTS. (a) The attorney general shall   investigate a complaint submitted to the attorney general that   alleges a licensing authority's rule, policy, or enforcement action   is not in compliance with the policy described by Section 2.003.          (b)  Not later than the 90th day after the date a complaint is   received, the attorney general shall:                (1)  investigate the complaint;                (2)  identify actions necessary to resolve the   complaint and, if appropriate, direct the licensing authority   subject to the complaint to take those actions; and                (3)  notify the complainant of the outcome of the   investigation and the disposition of the complaint.          (c)  Chapter 2001, Government Code, does not apply to the   disposition of a complaint under this section.          Sec. 2.054.  REVIEW OF ACTION. The governor, the lieutenant   governor, or a member of the legislature may request that the   attorney general review:                (1)  a rule, policy, or enforcement action of a   licensing authority for compliance with the policy described by   Section 2.003; or                (2)  a prior action of the attorney general under this   chapter.          Sec. 2.055.  ESTABLISHMENT OF DIVISION. The attorney   general may establish a division to actively supervise licensing   authorities as provided by this chapter and employ staff to carry   out the duties of this chapter, including employing one or more   attorneys who do not provide general counsel to any licensing   authority or exercise control over an authority other than the   supervision required by this chapter.          SECTION 2.  Not later than December 1, 2018, the attorney   general shall:                (1)  review all rules, policies, and enforcement   actions of a licensing authority, as defined by Section 2.001,   Occupations Code, as added by this Act, that are in effect or   ongoing on the effective date of this Act; and                (2)  provide a notice to each licensing authority that:                      (A)  identifies each rule, policy, or action of   the authority that is not in compliance with the policy described by   Section 2.003, Occupations Code, as added by this Act; and                      (B)  directs the authority to amend the rule or   policy or terminate the action, as applicable, to comply with the   policy described by Section 2.003, Occupations Code, as added by   this Act.          SECTION 3.  This Act takes effect September 1, 2017.