The Texas Independent Automotive Association supports House Bill 1543, which State Representative Bill Callegari filed Feb. 20, 2009 to limit the state of Texas’ regulation of private sector jobs.

The bill filed by Callegari, from District 132 in Katy, Texas, requires the enhanced legislative review of all existing occupational licensing programs, and implements a "sunrise process" to review the necessity for any new, proposed occupational licensing programs.

"The State of Texas has gone too far with regard to regulating individual Texans' right to work," said Representative Callegari. "Nearly one third of the state's workforce, that's one out of every three working Texans, requires a state license in order to do their job. If we really believe in a free market and limited government intervention, particularly with regard to an individual's right to work, then the Legislature needs to work to reverse this trend."

TIAA Executive Director Lee Roberts said this bill makes sense because it prevents groups and legislators with their own unique agendas from regulating occupations like the automotive and collision repair businesses in Texas unnecessarily.

“TIAA believes that licensing of our industry without very considerable review of the consequences would likely be harmful to the independent shop owners we represent,” Roberts said.  “We support a bill requiring a review process because it protects our members' interests.”

In its Report to the 81st Legislature, the House Committee on Government Reform studied the issue of the licensing and regulation of occupations in Texas. The report found that over 500 different types of occupations, representing the jobs held by over 2.7 million Texans, were licensed and regulated by the state government. The report highlighted how state occupational licensing programs limit job creation, shield licensees from fair competition, increase consumers' costs for services, and, in some cases, provide no public benefit. The Committee's report also identified a series of recommendations to strengthen the Legislature's oversight over existing and proposed occupational licensing programs.

HB 1543 implements the recommendations identified in the Government Reform Committee's reports. The bill requires legislative review of whether an existing occupational licensing program serves a meaningful, defined public interest such as protecting public health, safety, and welfare. HB 1543 also requires that the reviews focus on whether the occupational licensing programs provide the least restrictive form of regulation, the extent to which the they restrict competition, and how they affect consumers' choices and the cost of services.

"I am genuinely concerned that the State of Texas, in its zeal to regulate as many occupations as it has, may have gone too far," said Representative Callegari. "At a time in our economy when many people are concerned about creating and maintaining jobs, we need to make sure that there aren't regulatory programs run by the state that keep this from happening."

As introduced, HB 1543 also implements a sunrise requirement for new, proposed occupational licensing programs. The bill would require an in-depth review of proposed licensing programs to determine whether the regulations would protect public health, safety or welfare, and present a clear public benefit.

Several other states, including Colorado, Washington, West Virginia, and Arizona, have implemented sunrise review processes to evaluate the need for new occupational licensing programs. Implementation of sunrise review requirements in other states has curbed the growth of additional licensing programs. As an example, sunrise reviews conducted in Colorado recommended against the regulation of landscape architects, interior designers, and sign-language interpreters, all occupations that are currently regulated in Texas.

"My goal is to implement a process where the Legislature may critically evaluate the need for implementing new regulatory programs," said Representative Callegari. "Each new occupational licensing program require more regulation, more bureaucracy, and, ultimately, increased costs to the taxpayers. As a concerned conservative, I think that we need a system in place to keep this from getting out of hand."

TIAA encourages its members and the public to contact their state representatives to encourage passage of this legislation.