Bill Text: TX SB1995 | 2019-2020 | 86th Legislature | Enrolled

---

Bill Title: Relating to the review of certain occupational licensing rules by the office of the governor.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2019-06-10 - Effective on 9/1/19 [SB1995 Detail]

Download: Texas-2019-SB1995-Enrolled.html

---

S.B. No. 1995

AN ACT
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 [57.002]. REQUIREMENTS FOR GOVERNING BOARD
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.
(b) A state agency that issues a license must submit to the
division for review any rule that the agency proposes to repeal or
readopt with amendment after a review under Section 2001.039,
Government Code, if the rule affects market competition as
described by this section.
(b-1) A state agency that issues a license must submit to
the division for review any rule that the agency proposes to readopt
without amendment after a review under Section 2001.039, Government
Code, if the rule affects market competition as described by this
section. This subsection expires January 1, 2024.
(c) 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.
(d) 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 or to 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1995 passed the Senate on
April 23, 2019, by the following vote: Yeas 24, Nays 7; and that
the Senate concurred in House amendments on May 25, 2019, by the
following vote: Yeas 25, Nays 5.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1995 passed the House, with
amendments, on May 22, 2019, by the following vote: Yeas 104,
Nays 35, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor