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A BILL TO BE ENTITLED
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AN ACT
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relating to judicial review of certain regulations that apply to |
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state licensees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. This Act may be cited as the Regulations with |
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Economic Impact in Need of Scrutiny (REINS) Act. |
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SECTION 2. Title 2, Occupations Code, is amended by adding |
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Chapter 60 to read as follows: |
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CHAPTER 60. REGULATIONS WITH ECONOMIC IMPACT IN NEED OF SCRUTINY |
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Sec. 60.001. PURPOSE OF CHAPTER. It is the purpose of this |
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chapter to provide a judicial remedy to ensure that a state licensee |
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has the right to engage in an occupation or business activity |
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authorized by and regulated under state law without burdensome or |
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inconsistent local regulation of the state licensee's occupation or |
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lawful business activities. |
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Sec. 60.002. DEFINITIONS. In this chapter: |
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(1) "Local regulation" means any ordinance, rule, or |
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regulation adopted by the governing body of a municipality that |
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establishes requirements for, imposes restrictions on, or |
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otherwise regulates the business activity of a state licensee |
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within the municipality or the municipality's extraterritorial |
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jurisdiction. |
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(2) "State licensee" means a person or entity that, |
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under state law, in order to practice the person's occupation or |
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conduct the entity's business in this state, is required to obtain a |
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license, permit, registration certificate, or other evidence of |
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authority from, and is subject to regulation by, a state licensing |
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authority. |
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(3) "State licensing authority" means a state agency, |
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department, board, or commission or the executive or administrative |
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officer of a state agency, department, board, or commission. |
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Sec. 60.003. SUIT TO ENJOIN ENFORCMENT OF LOCAL REGULATION. |
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(a) A suit to enjoin enforcement of a local regulation may be |
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brought by a state licensee that is subject to the local regulation |
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if the local regulation: |
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(1) establishes requirements for, imposes |
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restrictions on, or otherwise regulates the business activity of |
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the state licensee in a manner that is more stringent than the |
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requirements, restrictions, and regulations imposed on the state |
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licensee under state law; or |
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(2) would result in an adverse economic impact on the |
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state licensee. |
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(b) A suit under this chapter must be brought in a district |
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court: |
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(1) for a judicial district in which any portion of the |
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territory of the municipality that adopted the local regulation is |
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located; or |
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(2) in Travis County. |
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(c) In a suit under this chapter, the state licensee must |
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show by a preponderance of the evidence that the local regulation |
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substantially burden's the state licensee's right to engage in an |
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occupation authorized by and regulated under state law or would |
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result in an adverse economic impact on the state licensee. In a |
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suit under this chapter, the state licensee may submit evidence |
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regarding the adverse economic impact of similar local regulations |
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in other jurisdictions inside or outside the state. |
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(d) If the state licensee meets the preponderance of the |
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evidence burden required by Subsection (c), the municipality has |
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the burden of establishing by clear and convincing evidence that |
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the local regulation the municipality seeks to enforce: |
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(1) does not conflict with state law; and |
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(2) is necessary and narrowly tailored to protect |
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against actual and specific harm to the public health or safety. |
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(e) The district court may grant any prohibitory or |
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mandatory relief warranted by the facts, including a temporary |
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restraining order, temporary injunction, or permanent injunction. |
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(f) If a state licensee prevails in a suit brought under |
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this chapter, the court shall award the state licensee court costs |
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and reasonable and necessary attorney's fees to be paid by the |
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municipality. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |