H.B. No. 5541 aims to prohibit discrimination by state agencies against applicants for or holders of occupational licenses based on their sincerely held religious beliefs. The bill introduces a new Subchapter D to Chapter 57 of the Occupations Code, which outlines that state agencies cannot adopt rules or policies that limit an applicant's ability to obtain, maintain, or renew a license due to their religious beliefs. Additionally, it protects the free exercise of religion, freedom of speech regarding religious beliefs, and membership in religious organizations. However, the bill specifies that these provisions do not apply to the licensing of peace officers by the Texas Commission on Law Enforcement and allows agencies to ensure that professional standards are met.

Furthermore, the bill provides a mechanism for individuals to assert violations of these protections in administrative hearings or judicial proceedings, with certain exceptions for allegations of sexual misconduct or criminal prosecution. It also allows individuals to seek injunctive relief against violations of the new provisions. The act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature or on September 1, 2025, if that threshold is not met.

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