Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HB 11 proposes the creation of a new Subchapter K within Chapter 51 of the Texas Occupations Code, focused on licensing reciprocity agreements administered by the Texas Department of Licensing and Regulation (TDLR). The bill directs TDLR to maximize the number of licensing reciprocity agreements with other states, subject to existing legal constraints. These agreements would allow individuals licensed in other jurisdictions to practice in Texas without needing to repeat redundant licensing processes, provided their home state’s requirements are substantially equivalent to those in Texas.

To implement this directive, the bill requires the Texas Commission of Licensing and Regulation to adopt rules establishing procedures for evaluating out-of-state licensing standards. The evaluation must consider the depth of training and testing, the scope of the license, and the disciplinary systems used by other states. If the standards are determined to be substantially equivalent, TDLR is authorized to enter into and enforce reciprocity agreements.

Additionally, the bill mandates that by December 1 of each odd-numbered year, TDLR must submit a report to the Governor and the Legislative Budget Board. This report must summarize the department’s progress on reciprocity efforts, highlight any Texas laws that obstruct such agreements, and propose legislative changes to enhance cross-state licensing cooperation. The bill establishes a deadline of January 1, 2026, for the commission to adopt its rules, and December 1, 2027, for the department’s initial report.

Overall, HB 11 seeks to reduce occupational licensing barriers, support workforce mobility, and streamline licensing processes in a manner that promotes regulatory efficiency and economic opportunity.

The Committee Substitute version of HB 11 makes significant structural revisions to the originally filed bill, primarily by narrowing its scope and clarifying administrative responsibilities. In the originally filed version, the legislation applied broadly to all Texas state licensing authorities, meaning any agency, board, or commission that issues occupational licenses would be responsible for pursuing reciprocity agreements with other states. In contrast, the substitute bill limits the application specifically to the Texas Department of Licensing and Regulation (TDLR), consolidating the effort under a single agency and significantly reducing the bill’s administrative complexity.

Another notable change lies in how the provisions are codified within state law. The originally filed bill proposed adding a new and independent Chapter 61 to the Occupations Code. This would have created a standalone framework governing reciprocity across multiple state entities. The substitute version, however, embeds the provisions into Chapter 51—TDLR’s existing governing statute—through the addition of Subchapter K. This revision helps integrate the reciprocity initiative directly into the department’s existing operational framework, suggesting a more streamlined and enforceable approach.

The substitute bill also centralizes the rulemaking and reporting requirements. While the original bill required each individual licensing authority to develop rules and submit its own biennial report to the Governor and Legislative Budget Board, the committee substitute assigns these tasks exclusively to TDLR. This change ensures a uniform standard for evaluating licensing equivalency and reduces administrative duplication across state agencies.

Overall, the Committee Substitute maintains the spirit of the original bill—expanding occupational licensing reciprocity to enhance workforce mobility—while making its implementation more practical, cost-effective, and administratively focused. These changes reflect a policy shift from broad agency mandates to a more targeted, centralized strategy for regulatory reform.

Author

Dade Phelan

Sponsor

Mayes Middleton

Contact the Author

Rep. Dade Phelan

Capitol Phone:

(512) 463-0706

Capitol Office:

CAP GW.8

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), the bill is not expected to have a significant fiscal impact on the state. The Texas Department of Licensing and Regulation (TDLR), which is solely responsible for implementing the bill under the substitute version, is anticipated to absorb any costs associated with its new duties using existing resources.

The tasks assigned to TDLR—such as reviewing the licensing standards of other states, entering into reciprocity agreements, and submitting biennial reports—do not require the creation of new programs or agencies. As such, the administrative load is viewed as manageable within the department’s current staffing and budget framework. No additional appropriations or funding mechanisms are proposed in the bill to support its implementation.

Additionally, there are no projected significant fiscal implications for local governments. Since the bill’s effects are confined to the state-level licensing process and do not impose mandates or require implementation at the municipal or county level, the impact on local jurisdictions is considered negligible.

In summary, HB 11 is designed to streamline occupational licensing without generating new costs, relying instead on existing infrastructure within TDLR to carry out its objectives. This positions the bill as a cost-neutral policy aimed at enhancing regulatory efficiency and workforce mobility.

Vote Recommendation Notes

HB 11 offers a limited and focused approach to reducing barriers in occupational licensing, with clear benefits to workforce mobility and regulatory efficiency in Texas. The bill authorizes the Texas Department of Licensing and Regulation (TDLR) to pursue and enter into licensing reciprocity agreements with other states where licensing standards are substantially equivalent. This change is intended to help professionals relocating to Texas avoid unnecessary duplication in training, testing, and fees, thereby enabling a more streamlined integration into the Texas workforce.

Importantly, the bill does not grow the size or scope of government. Unlike the originally filed version, which would have imposed new responsibilities on multiple state agencies, the Committee Substitute consolidates responsibility under a single existing agency—TDLR. This centralization enhances accountability and efficiency without creating new bureaucratic structures. Additionally, the bill imposes no new costs on taxpayers. According to the Legislative Budget Board, any administrative costs associated with rulemaking and reporting can be absorbed by TDLR using existing resources.

The legislation also aligns with efforts to reduce the regulatory burden on individuals and businesses. Rather than introducing new licensing requirements, it simplifies and shortens the path to licensure for individuals who already hold valid credentials in other states. For businesses, this translates to quicker access to skilled professionals and fewer delays due to licensure barriers, particularly in high-demand fields regulated by TDLR.

In summary, HB 11 upholds principles of limited government, fiscal responsibility, and economic freedom. It offers a pragmatic solution to help meet Texas’s growing labor demand while maintaining appropriate standards for public protection. With no significant cost, no bureaucratic expansion, and a clear benefit to licensed professionals and the businesses that employ them, Texas Policy Research recommends that lawmakers vote YES on HB 11.

Individual Liberty: The bill enhances individual liberty by making it easier for people to practice their professions in Texas if they’ve already earned licensure in another state. It removes unnecessary government-imposed obstacles, such as repeating training or exams, allowing individuals to more freely pursue their chosen livelihoods. This especially benefits those relocating to Texas for economic or personal reasons, reaffirming their right to earn a living without redundant bureaucratic interference.
Personal Responsibility: The bill reinforces the principle that individuals should take responsibility for obtaining and maintaining valid professional credentials. It honors professional competence acquired elsewhere, recognizing that people who meet standards in one state should not be forced to start over when they move. This acknowledges individual initiative and responsibility without punishing mobility.
Free Enterprise: The bill is a clear win for free enterprise. By removing barriers to entry for licensed professionals, it increases the supply of skilled labor and allows businesses to more easily fill positions, particularly in high-demand fields like HVAC, electrical, and cosmetology. Fewer regulatory delays mean lower hiring costs, more competition, and greater innovation—core attributes of a healthy free market.
Private Property Rights: The bill does not directly impact ownership or control over private property. However, by enabling more professionals to enter the Texas workforce more efficiently, it may indirectly support economic activity and property development in licensed industries.
Limited Government: Rather than expanding the role of government, the bill streamlines and narrows it. It shifts from a complex, multi-agency approach in the original version to a focused mandate on TDLR, preventing regulatory sprawl. Furthermore, it seeks to reduce unnecessary state-level requirements, respecting individual agency and local market dynamics while still preserving safety and quality through rulemaking oversight.

Related Legislation

SB 2531 (Same As)

View Bill Text and Status