By Ellis                                        S.B. No. 1131

      75R4583 GJH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of cosmetologists; providing an

 1-3     administrative penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 10(d), Chapter 1036, Acts of the 62nd

 1-6     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 1-7     Civil Statutes), is amended to read as follows:

 1-8           (d)  The applicant is entitled to an operator license if the

 1-9     applicant [he] possesses the qualifications enumerated in

1-10     Subsection (b) of this section, satisfactorily completes the

1-11     examination, pays a $70 [$35] license fee, and has not committed an

1-12     act that constitutes a ground for denial of a license.

1-13           SECTION 2.  Section 11(d), Chapter 1036, Acts of the 62nd

1-14     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

1-15     Civil Statutes), is amended to read as follows:

1-16           (d)  The applicant is entitled to a manicurist license if the

1-17     applicant [he] possesses the qualifications enumerated in

1-18     Subsection (b) of this section, satisfactorily completes the

1-19     examination, pays a $70 [$35] license fee, and has not committed an

1-20     act that constitutes a ground for denial of a license.

1-21           SECTION 3.  Section 12(d), Chapter 1036, Acts of the 62nd

1-22     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

1-23     Civil Statutes), is amended to read as follows:

1-24           (d)  The applicant is entitled to an instructor license if

 2-1     the applicant [he] possesses qualifications enumerated in

 2-2     Subsection (b) of this section, satisfactorily completes the

 2-3     examination, pays a $100 [$50] license fee, and has not committed

 2-4     an act that constitutes a ground for denial of a license.

 2-5           SECTION 4.  Section 13(d), Chapter 1036, Acts of the 62nd

 2-6     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 2-7     Civil Statutes), is amended to read as follows:

 2-8           (d)  The applicant is entitled to a specialty certificate if

 2-9     the applicant [he] possesses the qualifications enumerated in

2-10     Subsection (b) of this section, pays a $70 [$35] certificate fee,

2-11     and has not committed an act that constitutes a ground for denial

2-12     of a certificate.

2-13           SECTION 5.  Section 13A(d), Chapter 1036, Acts of the 62nd

2-14     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

2-15     Civil Statutes), is amended to read as follows:

2-16           (d)  The applicant is entitled to a facialist specialty

2-17     license if the applicant possesses the qualifications enumerated in

2-18     Subsection (b) of this section, satisfactorily completes the

2-19     examination, pays a $70 [$35] license fee, and has not committed an

2-20     act that constitutes a ground for denial of a license.

2-21           SECTION 6.  Section 19(c), Chapter 1036, Acts of the 62nd

2-22     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

2-23     Civil Statutes), is amended to read as follows:

2-24           (c)  The applicant is entitled to a beauty shop license if

2-25     the application shows compliance with the rules of the commission

2-26     and the applicant pays [,] a $90 [$45] license fee [is paid,] and

2-27     [he] has not committed an act that constitutes a ground for denial

 3-1     of a license.

 3-2           SECTION 7.  Section 20(c), Chapter 1036, Acts of the 62nd

 3-3     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 3-4     Civil Statutes), is amended to read as follows:

 3-5           (c)  The applicant is entitled to a specialty shop license if

 3-6     the application shows compliance with the rules and regulations of

 3-7     the commission and the applicant pays[,] a $90 [$45] license fee

 3-8     [is paid,] and [he] has not committed an act that constitutes a

 3-9     ground for denial of a license.

3-10           SECTION 8.  Chapter 1036, Acts of the 62nd Legislature,

3-11     Regular Session, 1971 (Article 8451a, Vernon's Texas Civil

3-12     Statutes), is amended by adding Section 20B to read as follows:

3-13           Sec. 20B.  NONTRANSFERABILITY OF LICENSE.  A license issued

3-14     under this Act is not transferable.

3-15           SECTION 9.  Section 34(a), Chapter 1036, Acts of the 62nd

3-16     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

3-17     Civil Statutes), is amended to read as follows:

3-18           (a)  Renewal fees under this Act are:

3-19                 (1)  Operator or specialty license     $70    [$35];

3-20                 (2)  Instructor license                $100   [$50];

3-21                 (3)  Manicurist license                $70    [$35];

3-22                 (4)  Private beauty school license     $200 per year;

3-23     and

3-24                 (5)  Beauty or specialty shop license  $90    [$45].

3-25           SECTION 10.  The heading to Section 40, Chapter 1036, Acts of

3-26     the 62nd Legislature, Regular Session, 1971 (Article 8451a,

3-27     Vernon's Texas Civil Statutes), is amended to read as follows:

 4-1           Sec. 40.  CRIMINAL PENALTIES.

 4-2           SECTION 11.  Chapter 1036, Acts of the 62nd Legislature,

 4-3     Regular Session, 1971 (Article 8451a, Vernon's Texas Civil

 4-4     Statutes), is amended by adding Section 40A to read as follows:

 4-5           Sec. 40A.  ADMINISTRATIVE PENALTY.  (a)  The commission may

 4-6     impose an administrative penalty against a person licensed or

 4-7     regulated under this Act who violates this Act or a rule or order

 4-8     adopted under this Act.

 4-9           (b)  The penalty for a violation may be in an amount not to

4-10     exceed $1,000.  Each day a violation continues or occurs is a

4-11     separate violation for purposes of imposing a penalty.

4-12           (c)  The amount of the penalty shall be based on:

4-13                 (1)  the seriousness of the violation, including the

4-14     nature, circumstances, extent, and gravity of any prohibited acts,

4-15     and the hazard or potential hazard created to the health, safety,

4-16     or economic welfare of the public;

4-17                 (2)  the economic harm to property or the environment

4-18     caused by the violation;

4-19                 (3)  the history of previous violations;

4-20                 (4)  the amount necessary to deter future violations;

4-21                 (5)  efforts to correct the violation; and

4-22                 (6)  any other matter that justice may require.

4-23           (d)  The executive director, on a determination that a

4-24     violation has occurred, may issue to the commission a report that

4-25     states the facts on which the determination is based and the

4-26     director's recommendation on the imposition of a penalty, including

4-27     a recommendation on the amount of the penalty.

 5-1           (e)  Within 14 days after the date the report is issued, the

 5-2     executive director shall give written notice of the report to the

 5-3     person.  The notice may be given by certified mail.  The notice

 5-4     must include a brief summary of the alleged violation and a

 5-5     statement of the amount of the recommended penalty and must inform

 5-6     the person that the person has a right to a hearing on the

 5-7     occurrence of the violation, the amount of the penalty, or both the

 5-8     occurrence of the violation and the amount of the penalty.

 5-9           (f)  Within 20 days after the date the person receives the

5-10     notice, the person in writing may accept the determination and

5-11     recommended penalty of the executive director or may make a written

5-12     request for a hearing on the occurrence of the violation, the

5-13     amount of the penalty, or both the occurrence of the violation and

5-14     the amount of the penalty.

5-15           (g)  If the person accepts the determination and recommended

5-16     penalty of the executive director, the commission by order shall

5-17     approve the determination and impose the recommended penalty.

5-18           (h)  If the person requests a hearing or fails to respond

5-19     timely to the notice, the executive director shall set a hearing

5-20     and give notice of the hearing to the person.  The hearing shall be

5-21     held by an administrative law judge of the State Office of

5-22     Administrative Hearings.  The administrative law judge shall make

5-23     findings of fact and conclusions of law and promptly issue to the

5-24     commission a proposal for a decision about the occurrence of the

5-25     violation and the amount of a proposed penalty.  Based on the

5-26     findings of fact, conclusions of law, and proposal for a decision,

5-27     the commission by order may find that a violation has occurred and

 6-1     impose a penalty or may find that no violation occurred.

 6-2           (i)  The notice of the commission's order given to the person

 6-3     under Chapter 2001, Government Code, must include a statement of

 6-4     the right of the person to judicial review of the order.

 6-5           (j)  Within 30 days after the date the commission's order

 6-6     becomes final as provided by Section 2001.144, Government Code, the

 6-7     person shall:

 6-8                 (1)  pay the amount of the penalty;

 6-9                 (2)  pay the amount of the penalty and file a petition

6-10     for judicial review contesting the occurrence of the violation, the

6-11     amount of the penalty, or both the occurrence of the violation and

6-12     the amount of the penalty; or

6-13                 (3)  without paying the amount of the penalty, file a

6-14     petition for judicial review contesting the occurrence of the

6-15     violation, the amount of the penalty, or both the occurrence of the

6-16     violation and the amount of the penalty.

6-17           (k)  Within the 30-day period, a person who acts under

6-18     Subsection (j)(3) of this section may:

6-19                 (1)  stay enforcement of the penalty by:

6-20                       (A)  paying the amount of the penalty to the

6-21     court for placement in an escrow account; or

6-22                       (B)  giving to the court a supersedeas bond that

6-23     is approved by the court for the amount of the penalty and that is

6-24     effective until all judicial review of the commission's order is

6-25     final; or

6-26                 (2)  request the court to stay enforcement of the

6-27     penalty by:

 7-1                       (A)  filing with the court a sworn affidavit of

 7-2     the person stating that the person is financially unable to pay the

 7-3     amount of the penalty and is financially unable to give the

 7-4     supersedeas bond; and

 7-5                       (B)  giving a copy of the affidavit to the

 7-6     executive director by certified mail.

 7-7           (l)  On receipt of a copy of an affidavit under Subsection

 7-8     (k)(2) of this section, the executive director may file with the

 7-9     court, within five days after the date the copy is received, a

7-10     contest to the affidavit.  The court shall hold a hearing on the

7-11     facts alleged in the affidavit as soon as practicable and shall

7-12     stay the enforcement of the penalty on finding that the alleged

7-13     facts are true.  The person who files an affidavit has the burden

7-14     of proving that the person is financially unable to pay the amount

7-15     of the penalty and to give a supersedeas bond.

7-16           (m)  If the person does not pay the amount of the penalty and

7-17     the enforcement of the penalty is not stayed, the executive

7-18     director may refer the matter to the attorney general for

7-19     collection of the amount of the penalty.

7-20           (n)  Judicial review of the order of the commission:

7-21                 (1)  is instituted by filing a petition as provided by

7-22     Subchapter G, Chapter 2001, Government Code; and

7-23                 (2)  is under the substantial evidence rule.

7-24           (o)  If the court sustains the occurrence of the violation,

7-25     the court may uphold or reduce the amount of the penalty and order

7-26     the person to pay the full or reduced amount of the penalty.  If

7-27     the court does not sustain the occurrence of the violation, the

 8-1     court shall order that no penalty is owed.

 8-2           (p)  When the judgment of the court becomes final, the court

 8-3     shall proceed under this subsection.  If the person paid the amount

 8-4     of the penalty and if that amount is reduced or is not upheld by

 8-5     the court, the court shall order that the appropriate amount plus

 8-6     accrued interest be remitted to the person.  The rate of the

 8-7     interest is the rate charged on loans to depository institutions by

 8-8     the New York Federal Reserve Bank, and the interest shall be paid

 8-9     for the period beginning on the date the penalty was paid and

8-10     ending on the date the penalty is remitted.  If the person gave a

8-11     supersedeas bond and if the amount of the penalty is not upheld by

8-12     the court, the court shall order the release of the bond.  If the

8-13     person gave a supersedeas bond and if the amount of the penalty is

8-14     reduced, the court shall order the release of the bond after the

8-15     person pays the amount.

8-16           (q)  A penalty collected under this section shall be remitted

8-17     to the comptroller for deposit in the general revenue fund.

8-18           (r)  All proceedings under this section are subject to

8-19     Chapter 2001, Government Code.

8-20           SECTION 12.  (a)  This Act takes effect September 1, 1997.

8-21           (b)  Section 40A, Chapter 1036, Acts of the 62nd Legislature,

8-22     Regular Session, 1971 (Article 8451a, Vernon's Texas Civil

8-23     Statutes), as added by this Act, applies only to a violation of

8-24     that chapter or a rule adopted under that chapter that occurs on or

8-25     after the effective date of this Act.  Section 20B of that chapter,

8-26     as added by this Act, applies only to the transfer of licenses on

8-27     or after that date.  The changes in law made by Sections 1-9 of

 9-1     this Act apply only to licenses issued or renewed on or after that

 9-2     date.  Licenses issued or renewed before that date are governed by

 9-3     the law in effect on the date of issuance or renewal, and the

 9-4     former law is continued in effect for that purpose.

 9-5           SECTION 13.  The importance of this legislation and the

 9-6     crowded condition of the calendars in both houses create an

 9-7     emergency and an imperative public necessity that the

 9-8     constitutional rule requiring bills to be read on three several

 9-9     days in each house be suspended, and this rule is hereby suspended.