Bill Text: TX SB1995 | 2019-2020 | 86th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the review of certain occupational licensing rules by the office of the governor.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-06-10 - Effective on 9/1/19 [SB1995 Detail]
Download: Texas-2019-SB1995-Comm_Sub.html
Bill Title: Relating to the review of certain occupational licensing rules by the office of the governor.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-06-10 - Effective on 9/1/19 [SB1995 Detail]
Download: Texas-2019-SB1995-Comm_Sub.html
By: Birdwell | S.B. No. 1995 | |
(Paddie) | ||
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relating to the review of certain occupational licensing rules by | ||
the office of the governor. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 57, Occupations Code, is amended by | ||
designating Section 57.001 as Subchapter A and adding a subchapter | ||
heading to read as follows: | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
SECTION 2. Chapter 57, Occupations Code, is amended by | ||
adding Subchapter B, and a heading is added to that subchapter to | ||
read as follows: | ||
SUBCHAPTER B. GOVERNING BOARD MEMBERSHIP | ||
SECTION 3. Section 57.002, Occupations Code, is transferred | ||
to Subchapter B, Chapter 57, Occupations Code, as added by this Act, | ||
and redesignated as Section 57.051, Occupations Code, to read as | ||
follows: | ||
Sec. 57.051 [ |
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MEMBERSHIP. A person may not be required to be a member of a private | ||
trade association as a precondition to serving as a member of the | ||
governing board of a state agency that issues a license or otherwise | ||
regulates a business, occupation, or profession. | ||
SECTION 4. Chapter 57, Occupations Code, is amended by | ||
adding Subchapter C to read as follows: | ||
SUBCHAPTER C. REVIEW OF STATE AGENCY RULES | ||
Sec. 57.101. DEFINITION. In this subchapter, "division" | ||
means the division of the governor's office established under this | ||
subchapter. | ||
Sec. 57.102. APPLICABILITY. This subchapter applies only | ||
to a state agency with a governing board that is controlled by | ||
persons who provide services that are regulated by the agency. | ||
Sec. 57.103. ESTABLISHMENT OF DIVISION. (a) The governor | ||
shall: | ||
(1) establish a division to review state agency rules | ||
in accordance with this subchapter; and | ||
(2) appoint a director for the division with the | ||
advice and consent of the senate. | ||
(b) The director must be licensed to practice law in this | ||
state and have experience in antitrust law. | ||
(c) The director serves a two-year term expiring February 1 | ||
of each odd-numbered year. | ||
Sec. 57.104. CONFLICT OF INTEREST. (a) In this section, | ||
"Texas trade association" means a cooperative and voluntarily | ||
joined statewide association of business or professional | ||
competitors in this state designed to assist its members and its | ||
industry or profession in dealing with mutual business or | ||
professional problems and in promoting their common interest. | ||
(b) A person may not be appointed as director or employed by | ||
the division in a "bona fide executive, administrative, or | ||
professional capacity," as that phrase is used for purposes of | ||
establishing an exemption to the overtime provisions of the federal | ||
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), | ||
and its subsequent amendments, if: | ||
(1) the person is an officer, employee, or paid | ||
consultant of a Texas trade association; or | ||
(2) the person's spouse is an officer, manager, or paid | ||
consultant of a Texas trade association. | ||
(c) A person may not be appointed as director or act as the | ||
general counsel to the division if the person is required to | ||
register as a lobbyist under Chapter 305, Government Code. | ||
Sec. 57.105. SUBMISSION OF CERTAIN STATE AGENCY RULES. | ||
(a) A state agency that issues a license must submit any proposed | ||
rule affecting market competition in this state relating to the | ||
business, occupation, or profession for which a license is issued | ||
to the division for review before the rule is adopted or | ||
implemented. A state agency that issues a license must also submit | ||
to the division for review any rule that the agency is considering | ||
for readoption under Section 2001.039, Government Code, if the rule | ||
affects market competition as described by this section. | ||
(b) The state agency must include with the submission a | ||
statement of the purpose for the proposed rule, copies of all | ||
administrative records regarding the proposed rule, including any | ||
information or comments the agency received from the public, and | ||
any other information required by the division. | ||
(c) For purposes of this section, a rule affects market | ||
competition if the rule would, if implemented or readopted: | ||
(1) create a barrier to market participation in this | ||
state; or | ||
(2) result in higher prices or reduced competition for | ||
a product or service provided by a license holder in this state. | ||
Sec. 57.106. REVIEW BY DIVISION. (a) The division shall | ||
conduct a thorough, independent review of each proposed rule | ||
submitted under Section 57.105 to determine: | ||
(1) if the effect of the proposed rule on market | ||
competition is consistent with state policy as established by the | ||
applicable state agency's governing statute; and | ||
(2) whether the proposed rule promotes a clearly | ||
articulated and affirmatively expressed policy as established by | ||
the legislature to displace competition with government action. | ||
(b) In conducting the review, the division may: | ||
(1) request information from the state agency; | ||
(2) require the state agency to conduct an analysis of | ||
possible implications of the rule; | ||
(3) solicit public comments; or | ||
(4) hold public hearings. | ||
(c) The division shall complete the review not later than | ||
the 90th day after the date the proposed rule is submitted under | ||
Section 57.105. | ||
(d) After review, the division shall: | ||
(1) approve the proposed rule; or | ||
(2) reject the proposed rule and return the rule to the | ||
state agency with instructions for revising the rule to be | ||
consistent with applicable state policy. | ||
(e) A state agency may not finally adopt or implement a | ||
proposed rule required to be submitted for review under this | ||
subchapter unless the division has approved the rule under this | ||
section. | ||
(f) The division shall, for each proposed rule submitted | ||
under this subchapter, provide to the state agency and make | ||
available to the public an explanation of the division's reasons | ||
for approving or rejecting the rule, including a discussion of the | ||
division's determination regarding the consistency of the rule with | ||
applicable state policy. | ||
(g) The division may initiate a review of a proposed rule | ||
that was not submitted for review under this subchapter if the | ||
division has reason to believe that the proposed rule may have an | ||
anticompetitive market effect. A state agency may not finally | ||
adopt or implement a proposed rule for which the division has | ||
initiated a review under this subsection unless the division | ||
approves the rule in accordance with this section. | ||
(h) When conducting a review of a proposed rule or deciding | ||
whether to initiate a review, the division shall only consider | ||
evidence or communications that are: | ||
(1) submitted to the division in writing from an | ||
identified person or entity and made available to the public; | ||
(2) submitted in a public hearing; or | ||
(3) generally known to the public. | ||
Sec. 57.107. RULEMAKING AUTHORITY. The division may adopt | ||
rules to carry out this subchapter. | ||
SECTION 5. The office of the governor is required to | ||
implement a provision of this Act only if the legislature | ||
appropriates money specifically for that purpose. If the | ||
legislature does not appropriate money specifically for that | ||
purpose, the office of the governor may, but is not required to, | ||
implement a provision of this Act using other appropriations | ||
available for that purpose. | ||
SECTION 6. This Act takes effect September 1, 2019. |