89R1290 RDR-F     By: Curry H.B. No. 3838       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.