The bill introduced by Representative Phelan aims to establish a framework for occupational licensing reciprocity agreements in Texas by adding Chapter 61 to the Occupations Code. It defines key terms such as "licensing authority" and "occupational license," and sets forth the goal for each licensing authority to maximize these reciprocity agreements where legally permissible. The bill mandates that licensing authorities identify any state laws that hinder the establishment of such agreements and adopt necessary rules to implement the chapter. These rules will include procedures for assessing whether the licensing requirements of other states are substantially equivalent to Texas's requirements.

Additionally, the bill requires each licensing authority to submit a report every odd-numbered year, starting December 1, 2027, detailing their efforts to enter into reciprocity agreements, including successes and challenges faced. The report should also recommend any legislative actions needed to enhance the number of reciprocity agreements, potentially including adjustments to Texas's licensing requirements. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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