1-1     By:  Carona                                            S.B. No. 846
 1-2           (In the Senate - Filed March 3, 1999; March 4, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     March 31, 1999, reported favorably by the following vote:  Yeas 8,
 1-5     Nays 0; March 31, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to certain fees and penalties applicable to the regulation
 1-9     of barbers.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subsection (b), Section 23, Chapter 65, Acts of
1-12     the 41st Legislature, 1st Called Session, 1929 (Article 8407a,
1-13     Vernon's Texas Civil Statutes), is amended to read as follows:
1-14           (b)  The fees to be paid to the Board by an applicant for an
1-15     examination to determine the applicant's [his] fitness to receive a
1-16     certificate of registration to practice barbering or to practice as
1-17     a barber technician shall be set by the Board in an amount not to
1-18     exceed $50 [$10].
1-19           SECTION 2.  Section 24, Chapter 65, Acts of the 41st
1-20     Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
1-21     Texas Civil Statutes), is amended to read as follows:
1-22           Sec. 24.  VIOLATIONS [OFFENSES AND PENALTY].  Each of the
1-23     following is a violation of this Act for which an administrative
1-24     penalty may be imposed under Section 24A of this Act: [offenses
1-25     shall constitute a misdemeanor punishable upon conviction in a
1-26     court of competent jurisdiction by a fine of not less than
1-27     twenty-five dollars ($25.00) nor more than two hundred dollars
1-28     ($200.00).]
1-29                 (A)  The violation of any of the provisions of Sections
1-30     1, 2, or 3 of this Act;
1-31                 (B)  Permitting any person in one's employ,
1-32     supervision, or control to practice as a barber or other licensee
1-33     unless that person has a current certificate of registration or
1-34     license issued by the board;
1-35                 (C)  Obtaining or attempting to obtain a certificate of
1-36     registration or license by fraudulent representation;
1-37                 (C-1)  For anyone who owns, operates or manages a
1-38     barber school or college to work a chair or to permit teachers,
1-39     student teachers, or anyone other than an enrolled student to
1-40     render barbering services to the public in their said
1-41     establishment; and
1-42                 (D)  The willful failure to display a certificate of
1-43     registration or license as required by Section 19 of this Act.
1-44           SECTION 3.  Chapter 65, Acts of the 41st Legislature, 1st
1-45     Called Session, 1929 (Article 8407a, Vernon's Texas Civil
1-46     Statutes), is amended by adding Sections 24A through 24M to read as
1-47     follows:
1-48           Sec. 24A.  IMPOSITION OF ADMINISTRATIVE PENALTY.  The board
1-49     may impose an administrative penalty on a person for a violation
1-50     under Section 24 of this Act.
1-51           Sec. 24B.  AMOUNT OF ADMINISTRATIVE PENALTY.  (a)  The amount
1-52     of the administrative penalty may not exceed $1,000.  Each day a
1-53     violation continues or occurs is a separate violation for purposes
1-54     of imposing a penalty.
1-55           (b)  The amount of a penalty shall be based on:
1-56                 (1)  the seriousness of the violation, including the
1-57     nature, circumstances, extent, and gravity of the violation;
1-58                 (2)  the economic harm to property or the public caused
1-59     by the violation;
1-60                 (3)  the history of previous violations;
1-61                 (4)  the amount necessary to deter a future violation;
1-62                 (5)  efforts to correct the violation; and
1-63                 (6)  any other matter that justice may require.
1-64           Sec. 24C.  REPORT AND NOTICE OF VIOLATION AND ADMINISTRATIVE
 2-1     PENALTY.  (a)  If the executive director determines that a
 2-2     violation occurred, the executive director may issue to the board a
 2-3     report stating:
 2-4                 (1)  the facts on which the determination is based; and
 2-5                 (2)  the executive director's recommendation on the
 2-6     imposition of an administrative penalty, including a recommendation
 2-7     on the amount of the penalty.
 2-8           (b)  Not later than the 14th day after the date the report is
 2-9     issued, the executive director shall give written notice of the
2-10     report to the person.
2-11           (c)  The notice must:
2-12                 (1)  include a brief summary of the alleged violation;
2-13                 (2)  state the amount of the recommended penalty; and
2-14                 (3)  inform the person of the person's right to a
2-15     hearing on the occurrence of the violation, the amount of the
2-16     penalty, or both.
2-17           Sec. 24D.  ADMINISTRATIVE PENALTY TO BE PAID OR HEARING
2-18     REQUESTED.  (a)  Not later than the 20th day after the date the
2-19     person receives the notice, the person in writing may:
2-20                 (1)  accept the determination and recommended
2-21     administrative penalty of the executive director; or
2-22                 (2)  make a request for a hearing on the occurrence of
2-23     the violation, the amount of the penalty, or both.
2-24           (b)  If the person accepts the determination and recommended
2-25     penalty of the executive director, the board by order shall approve
2-26     the determination and impose the recommended penalty.
2-27           Sec. 24E.  HEARING.  (a)  If the person requests a hearing or
2-28     fails to respond in a timely manner to the notice, the executive
2-29     director shall set a hearing and give written notice of the hearing
2-30     to the person.  An administrative law judge of the State Office of
2-31     Administrative Hearings shall hold the hearing.
2-32           (b)  The administrative law judge shall make findings of fact
2-33     and conclusions of law and promptly issue to the board a proposal
2-34     for a decision about the occurrence of the violation and the amount
2-35     of any proposed administrative penalty.
2-36           Sec. 24F.  DECISION BY BOARD.  (a)  Based on the findings of
2-37     fact, conclusions of law, and proposal for a decision, the board by
2-38     order may:
2-39                 (1)  find that a violation occurred and impose an
2-40     administrative penalty; or
2-41                 (2)  find that a violation did not occur.
2-42           (b)  The notice of the board's order given to the person must
2-43     include a statement of the right of the person to judicial review
2-44     of the order.
2-45           Sec. 24G.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.  Not
2-46     later than the 30th day after the date the board's order becomes
2-47     final, the person shall:
2-48                 (1)  pay the administrative penalty; or
2-49                 (2)  file a petition for judicial review contesting the
2-50     occurrence of the violation, the amount of the penalty, or both.
2-51           Sec. 24H.  STAY OF ENFORCEMENT OF ADMINISTRATIVE PENALTY.
2-52     (a)  Within the 30-day period prescribed by Section 24G of this
2-53     Act, a person who files a petition for judicial review may:
2-54                 (1)  stay enforcement of the administrative penalty by:
2-55                       (A)  paying the penalty to the court for
2-56     placement in an escrow account; or
2-57                       (B)  giving the court a supersedeas bond approved
2-58     by the court that:
2-59                             (i)  is for the amount of the penalty; and
2-60                             (ii)  is effective until all judicial
2-61     review of the board's order is final; or
2-62                 (2)  request the court to stay enforcement of the
2-63     penalty by:
2-64                       (A)  filing with the court a sworn affidavit of
2-65     the person stating that the person is financially unable to pay the
2-66     penalty and is financially unable to give the supersedeas bond; and
2-67                       (B)  giving a copy of the affidavit to the
2-68     executive director by certified mail.
2-69           (b)  If the executive director receives a copy of an
 3-1     affidavit under Subsection (a)(2) of this section, the executive
 3-2     director may file with the court, not later than the fifth day
 3-3     after the date the copy is received, a contest to the affidavit.
 3-4     The court shall hold a hearing on the facts alleged in the
 3-5     affidavit as soon as practicable and shall stay the enforcement of
 3-6     the penalty on finding that the alleged facts are true.  The person
 3-7     who files an affidavit has the burden of proving that the person is
 3-8     financially unable to pay the penalty and to give a supersedeas
 3-9     bond.
3-10           Sec. 24I.  COLLECTION OF ADMINISTRATIVE PENALTY.  (a)  If the
3-11     person does not pay the administrative penalty and the enforcement
3-12     of the penalty is not stayed, the penalty may be collected.
3-13           (b)  The attorney general may sue to collect the penalty.
3-14           Sec. 24J.  DECISION BY COURT.  (a)  If the court sustains the
3-15     finding that a violation occurred, the court may uphold or reduce
3-16     the amount of the administrative penalty and order the person to
3-17     pay the full or reduced amount of the penalty.
3-18           (b)  If the court does not sustain the finding that a
3-19     violation occurred, the court shall order that a penalty is not
3-20     owed.
3-21           Sec. 24K.  REMITTANCE OF ADMINISTRATIVE PENALTY AND INTEREST.
3-22     (a)  If the person paid the administrative penalty and if the
3-23     amount of the penalty is reduced or the penalty is not upheld by
3-24     the court, the court shall order, when the court's judgment becomes
3-25     final, that the appropriate amount plus accrued interest be
3-26     remitted to the person.
3-27           (b)  The interest accrues at the rate charged on loans to
3-28     depository institutions by the New York Federal Reserve Bank.
3-29           (c)  The interest shall be paid for the period beginning on
3-30     the date the penalty is paid and ending on the date the penalty is
3-31     remitted.
3-32           Sec. 24L.  RELEASE OF BOND.  (a)  If the person gave a
3-33     supersedeas bond and the administrative penalty is not upheld by
3-34     the court, the court shall order, when the court's judgment becomes
3-35     final, the release of the bond.
3-36           (b)  If the person gave a supersedeas bond and the amount of
3-37     the penalty is reduced, the court shall order the release of the
3-38     bond after the person pays the reduced amount.
3-39           Sec. 24M.  ADMINISTRATIVE PROCEDURE.  A proceeding to impose
3-40     an administrative penalty is considered to be a contested case
3-41     under Chapter 2001, Government Code.
3-42           SECTION 4.  (a)  This Act takes effect September 1, 1999.
3-43           (b)  The change in law made by this Act to Subsection (b),
3-44     Section 23, Chapter 65, Acts of the 41st Legislature, 1st Called
3-45     Session, 1929 (Article 8407a, Vernon's Texas Civil Statutes),
3-46     applies only to an application for an examination filed on or after
3-47     that date.  An application filed before the effective date of this
3-48     Act is governed by the law in effect on the date the application
3-49     was filed, and the former law is continued in effect for that
3-50     purpose.
3-51           (c)  The change in law made by this Act applies only to a
3-52     violation under Section 24, Chapter 65, Acts of the 41st
3-53     Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
3-54     Texas Civil Statutes), as amended by this Act, that occurs on or
3-55     after the effective date of this Act.  A violation of that section
3-56     that occurs before the effective date of this Act is governed by
3-57     the law in effect on the day the violation occurred, and the
3-58     former law is continued in effect for that purpose.
3-59           (d)  For purposes of Subsection (c) of this section, a
3-60     violation occurs before the effective date of this Act if any
3-61     element of the violation occurs before that date.
3-62           SECTION 5.  The importance of this legislation and the
3-63     crowded condition of the calendars in both houses create an
3-64     emergency and an imperative public necessity that the
3-65     constitutional rule requiring bills to be read on three several
3-66     days in each house be suspended, and this rule is hereby suspended.
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