By Gutierrez                                          H.B. No. 3094
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain fees and penalties applicable to the regulation
 1-3     of barbers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 23(b), Chapter 65, Acts of the 41st
 1-6     Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
 1-7     Texas Civil Statutes), is amended to read as follows:
 1-8           (b)  The fees to be paid to the Board by an applicant for an
 1-9     examination to determine the applicant's [his] fitness to receive a
1-10     certificate of registration to practice barbering or to practice as
1-11     a barber technician shall be set by the board in an amount not to
1-12     exceed $50 [$10].
1-13           SECTION 2.  Section 24, Chapter 65, Acts of the 41st
1-14     Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
1-15     Texas Civil Statutes), is amended to read as follows:
1-16           Sec. 24.  VIOLATIONS [OFFENSES AND PENALTY].  Each of the
1-17     following is a violation of this Act for which an administrative
1-18     penalty may be imposed under Section 24A of this Act: [offenses
1-19     shall constitute a misdemeanor punishable upon conviction in a
1-20     court of competent jurisdiction by a fine of not less than
1-21     twenty-five dollars ($25.00) nor more than two hundred dollars
 2-1     ($200.00).]
 2-2                       (A)  The violation of any of the provisions of
 2-3     Sections 1, 2, or 3 of this Act;
 2-4                       (B)  Permitting any person in one's employ,
 2-5     supervision, or control to practice as a barber or other licensee
 2-6     unless that person has a current certificate of registration or
 2-7     license issued by the board;
 2-8                       (C)  Obtaining or attempting to obtain a
 2-9     certificate of registration or license by fraudulent
2-10     representation;
2-11                       (C-1)  For anyone who owns, operates or manages a
2-12     barber school or college to work a chair or to permit teachers,
2-13     student teachers, or anyone other than an enrolled student to
2-14     render barbering services to the public in their said
2-15     establishment; and
2-16                       (D)  The willful failure to display a certificate
2-17     of registration or license as required by Section 19 of this Act.
2-18           SECTION 3.  Chapter 65, Acts of the 41st Legislature, 1st
2-19     Called Session, 1929 (Article 8407a, Vernon's Texas Civil
2-20     Statutes), is amended by adding Sections 24A-24M to read as
2-21     follows:
2-22           Sec. 24A.  IMPOSITION OF ADMINISTRATIVE PENALTY.  The board
2-23     may impose an administrative penalty on a person for a violation
2-24     under Section 24 of this Act.
2-25           Sec. 24B.  AMOUNT OF ADMINISTRATIVE PENALTY.  (a)  The amount
 3-1     of the administrative penalty may not exceed $1,000.  Each day a
 3-2     violation continues or occurs is a separate violation for purposes
 3-3     of imposing a penalty.
 3-4           (b)  The amount of a penalty shall be based on:
 3-5                 (1)  the seriousness of the violation, including the
 3-6     nature, circumstances, extent, and gravity of the violation;
 3-7                 (2)  the economic harm to property or the public caused
 3-8     by the violation;
 3-9                 (3)  the history of previous violations;
3-10                 (4)  the amount necessary to deter a future violation;
3-11                 (5)  efforts to correct the violation; and
3-12                 (6)  any other matter that justice may require.
3-13           Sec. 24C.  REPORT AND NOTICE OF VIOLATION AND ADMINISTRATIVE
3-14     PENALTY.  (a)  If the executive director determines that a
3-15     violation occurred, the executive director may issue to the board a
3-16     report stating:
3-17                 (1)  the facts on which the determination is based; and
3-18                 (2)  the executive director's recommendation on the
3-19     imposition of an administrative penalty, including a recommendation
3-20     on the amount of the penalty.
3-21           (b)  Not later than the 14th day after the date the report is
3-22     issued, the executive director shall give written notice of the
3-23     report to the person.
3-24           (c)  The notice must:
3-25                 (1)  include a brief summary of the alleged violation;
 4-1                 (2)  state the amount of the recommended penalty; and
 4-2                 (3)  inform the person of the person's right to a
 4-3     hearing on the occurrence of the violation, the amount of the
 4-4     penalty, or both.
 4-5           Sec. 24D.  ADMINISTRATIVE PENALTY TO BE PAID OR HEARING
 4-6     REQUESTED.  (a)  Not later than the 20th day after the date the
 4-7     person receives the notice, the person in writing may:
 4-8                 (1)  accept the determination and recommended
 4-9     administrative penalty of the executive director; or
4-10                 (2)  make a request for a hearing on the occurrence of
4-11     the violation, the amount of the penalty, or both.
4-12           (b)  If the person accepts the determination and recommended
4-13     penalty of the executive director, the board by order shall approve
4-14     the determination and impose the recommended penalty.
4-15           Sec. 24E.  HEARING.  (a)  If the person requests a hearing or
4-16     fails to respond in a timely manner to the notice, the executive
4-17     director shall set a hearing and give written notice of the hearing
4-18     to the person.  An administrative law judge of the State Office of
4-19     Administrative Hearings shall hold the hearing.
4-20           (b)  The administrative law judge shall make findings of fact
4-21     and conclusions of law and promptly issue to the board a proposal
4-22     for a decision about the occurrence of the violation and the amount
4-23     of any proposed administrative penalty.
4-24           Sec. 24F.  DECISION BY BOARD.  (a)  Based on the findings of
4-25     fact, conclusions of law, and proposal for a decision, the board by
 5-1     order may:
 5-2                 (1)  find that a violation occurred and impose an
 5-3     administrative penalty; or
 5-4                 (2)  find that a violation did not occur.
 5-5           (b)  The notice of the board's order given to the person must
 5-6     include a statement of the right of the person to judicial review
 5-7     of the order.
 5-8           Sec. 24G.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL.  Not
 5-9     later than the 30th day after the date the board's order becomes
5-10     final, the person shall:
5-11                 (1)  pay the administrative penalty; or
5-12                 (2)  file a petition for judicial review contesting the
5-13     occurrence of the violation, the amount of the penalty, or both.
5-14           Sec. 24H.  STAY OF ENFORCEMENT OF ADMINISTRATIVE PENALTY.
5-15     (a)  Within the 30-day period prescribed by Section 24G of this
5-16     Act, a person who files a petition for judicial review may:
5-17                 (1)  stay enforcement of the administrative penalty by:
5-18                       (A)  paying the penalty to the court for
5-19     placement in an escrow account; or
5-20                       (B)  giving the court a supersedeas bond approved
5-21     by the court that:
5-22                             (i)  is for the amount of the penalty; and
5-23                             (ii)  is effective until all judicial
5-24     review of the board's order is final; or
5-25                 (2)  request the court to stay enforcement of the
 6-1     penalty by:
 6-2                       (A)  filing with the court a sworn affidavit of
 6-3     the person stating that the person is financially unable to pay the
 6-4     penalty and is financially unable to give the supersedeas bond; and
 6-5                       (B)  giving a copy of the affidavit to the
 6-6     executive director by certified mail.
 6-7           (b)  If the executive director receives a copy of an
 6-8     affidavit under Subsection (a)(2) of this section, the executive
 6-9     director may file with the court, not later than the fifth day
6-10     after the date the copy is received, a contest to the affidavit.
6-11     The court shall hold a hearing on the facts alleged in the
6-12     affidavit as soon as practicable and shall stay the enforcement of
6-13     the penalty on finding that the alleged facts are true.  The person
6-14     who files an affidavit has the burden of proving that the person is
6-15     financially unable to pay the penalty and to give a supersedeas
6-16     bond.
6-17           Sec. 24I.  COLLECTION OF ADMINISTRATIVE PENALTY.  (a)  If the
6-18     person does not pay the administrative penalty and the enforcement
6-19     of the penalty is not stayed, the penalty may be collected.
6-20           (b)  The attorney general may sue to collect the penalty.
6-21           Sec. 24J.  DECISION BY COURT.  (a)  If the court sustains the
6-22     finding that a violation occurred, the court may uphold or reduce
6-23     the amount of the administrative penalty and order the person to
6-24     pay the full or reduced amount of the penalty.
6-25           (b)  If the court does not sustain the finding that a
 7-1     violation occurred, the court shall order that a penalty is not
 7-2     owed.
 7-3           Sec. 24K.  REMITTANCE OF ADMINISTRATIVE PENALTY AND INTEREST.
 7-4     (a)  If the person paid the administrative penalty and if the
 7-5     amount of the penalty is reduced or the penalty is not upheld by
 7-6     the court, the court shall order, when the court's judgment becomes
 7-7     final, that the appropriate amount plus accrued interest be
 7-8     remitted to the person.
 7-9           (b)  The interest accrues at the rate charged on loans to
7-10     depository institutions by the New York Federal Reserve Bank.
7-11           (c)  The interest shall be paid for the period beginning on
7-12     the date the penalty is paid and ending on the date the penalty is
7-13     remitted.
7-14           Sec. 24L.  RELEASE OF BOND.  (a)  If the person gave a
7-15     supersedeas bond and the administrative penalty is not upheld by
7-16     the court, the court shall order, when the court's judgment becomes
7-17     final, the release of the bond.
7-18           (b)  If the person gave a supersedeas bond and the amount of
7-19     the penalty is reduced, the court shall order the release of the
7-20     bond after the person pays the reduced amount.
7-21           Sec. 24M.  ADMINISTRATIVE PROCEDURE.  A proceeding to impose
7-22     an administrative penalty is considered to be a contested case
7-23     under Chapter 2001, Government Code.
7-24           SECTION 4.  (a)  This Act takes effect September 1, 1999.
7-25           (b)  The change in law made by this Act to Section 23(b),
 8-1     Chapter 65, Acts of the 41st Legislature, 1st Called Session, 1929
 8-2     (Article 8407a, Vernon's Texas Civil Statutes), applies only to an
 8-3     application for an examination filed on or after that date.  An
 8-4     application filed before the effective date of this Act is governed
 8-5     by the law in effect on the date the application was filed, and the
 8-6     former law is continued in effect for that purpose.
 8-7           (c)  The change in law made by this Act applies only to a
 8-8     violation under Section 24, Chapter 65, Acts of the 41st
 8-9     Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
8-10     Texas Civil Statutes), as amended by this Act, that occurs on or
8-11     after the effective date of this Act.  A violation of that section
8-12     that occurs before the effective date of this Act is governed by
8-13     the law in effect on the day the violation occurred, and the
8-14     former law is continued in effect for that purpose.
8-15           (d)  For purposes of Subsection (c) of this section, a
8-16     violation occurs before the effective date of this Act if any
8-17     element of the violation occurs before that date.
8-18           SECTION 5.  The importance of this legislation and the
8-19     crowded condition of the calendars in both houses create an
8-20     emergency and an imperative public necessity that the
8-21     constitutional rule requiring bills to be read on three several
8-22     days in each house be suspended, and this rule is hereby suspended.