1-1                                   AN ACT
 1-2     relating to the regulation of certain occupations by, and other
 1-3     powers and duties of, the Texas Department of Licensing and
 1-4     Regulation.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Sections 14(a)-(c), Article 9034, Revised
 1-7     Statutes, as added by Chapter 1559, Acts of the 76th Legislature,
 1-8     Regular Session, 1999, are amended to read as follows:
 1-9           (a)  On a finding that a ground for disciplinary action
1-10     exists under one or more provisions of this article, the commission
1-11     [commissioner] may impose appropriate administrative sanctions,
1-12     including an administrative penalty as provided by Subchapter F,
1-13     Chapter 51, Occupations Code [Article 9100, Revised Statutes].  An
1-14     administrative penalty imposed under this section may not exceed
1-15     $500 per violation or $10,000 in the aggregate for all violations
1-16     of a similar nature.
1-17           (b)  A disciplinary action taken under this article is
1-18     subject to Sections 51.305, 51.310, and 51.354, Occupations Code
1-19     [Section 17(d), Article 9100, Revised Statutes].
1-20           (c)  The department [commissioner] may bring an action for
1-21     injunctive proceedings under Section 51.352, Occupations Code [18,
1-22     Article 9100, Revised Statutes], for a threatened or existing
1-23     violation of this article or [the commissioner's] orders or rules
1-24     adopted under this article and may also bring an action for civil
 2-1     penalties as provided by that section.  A civil penalty assessed
 2-2     under this subsection may not exceed $2,500 per violation or
 2-3     $50,000 in the aggregate for all violations of a similar nature.
 2-4           SECTION 2.  Section 5(h), Article 9102, Revised Statutes, is
 2-5     amended to read as follows:
 2-6           (h)  The commission may also impose an administrative penalty
 2-7     under Subchapter F, Chapter 51, Occupations Code [Article 9100,
 2-8     Revised Statutes], on a building owner for a violation of this
 2-9     article or a rule adopted under this article.  Each day that the
2-10     violation is not corrected constitutes a separate violation.  When
2-11     the commission considers imposing an administrative penalty under
2-12     this section, the commission shall first notify a person
2-13     responsible for the building and allow that person 90 days to bring
2-14     the building into compliance.  The commission shall have the
2-15     authority to extend the 90-day period when circumstances justify
2-16     such extension.
2-17           SECTION 3.  Section 6, Article 9102, Revised Statutes, is
2-18     amended to read as follows:
2-19           Sec. 6.  FEES. The commission shall set and charge, in
2-20     accordance with Section 51.202, Occupations Code [Article 9100,
2-21     Revised Statutes], fees for performing its functions under this
2-22     article.  [The fees shall be paid by the owner of a building when
2-23     the department performs a function related to the building under
2-24     this article.  The fees must include a fee for:]
2-25                 [(1)  reviewing the plans or specifications of a
2-26     building;]
2-27                 [(2)  inspecting a building; and]
 3-1                 [(3)  processing a request to waive or modify
 3-2     accessibility standards for a building.]
 3-3           SECTION 4.  Section 755.030(a), Health and Safety Code, is
 3-4     amended to read as follows:
 3-5           (a)  In addition to the fees described by Section 51.202,
 3-6     Occupations Code [12(f), Article 9100, Revised Statutes], the
 3-7     commission may authorize the collection of fees for:
 3-8                 (1)  boiler inspections, including fees for special
 3-9     inspections; and
3-10                 (2)  other activities administered by the boiler
3-11     inspection section and authorized by rule of the executive director
3-12     of the department [commissioner].
3-13           SECTION 5.  Section 92.003, Labor Code, is amended to read as
3-14     follows:
3-15           Sec. 92.003.  AGENCY POWERS AND DUTIES. The department[,
3-16     commissioner,] and commission shall exercise the regulatory,
3-17     administrative, and licensing authority granted under this chapter
3-18     as provided by Chapter 51, Occupations Code [Article 9100, Revised
3-19     Statutes].
3-20           SECTION 6.  Section 51.001, Occupations Code, is amended to
3-21     read as follows:
3-22           Sec. 51.001.  DEFINITIONS. In this chapter:
3-23                 (1)  "Commission" means the Texas Commission of
3-24     Licensing and Regulation.
3-25                 (2)  ["Commissioner" means the commissioner of
3-26     licensing and regulation.]
3-27                 [(3)]  "Department" means the Texas Department of
 4-1     Licensing and Regulation.
 4-2                 (3)  "License" means a license, certificate,
 4-3     registration, title, or permit issued by the department.
 4-4                 (4)  "License holder" means a person who holds a
 4-5     license issued by the department.
 4-6                 (5)  "Respondent" means a person, regardless of whether
 4-7     the person is a license holder, who is charged with violating a law
 4-8     establishing a regulatory program administered by the department or
 4-9     a rule adopted or order issued by the commission or executive
4-10     director.
4-11                 (6)  "Sanction" means an action by the executive
4-12     director against a license holder or another person, including the
4-13     denial, suspension, or revocation of a license, the reprimand of a
4-14     license holder, or the placement of a license holder on probation.
4-15           SECTION 7.  Section 51.051(b), Occupations Code, is amended
4-16     to read as follows:
4-17           (b)  The department is governed by the commission [and the
4-18     commissioner].
4-19           SECTION 8.  Section 51.053, Occupations Code, is amended by
4-20     amending Subsection (b) and adding Subsection (c) to read as
4-21     follows:
4-22           (b)  A person is not eligible for appointment as a member of
4-23     the commission if the person or the person's spouse:
4-24                 (1)  is regulated [registered, certified, or licensed]
4-25     by the department;
4-26                 (2)  is employed by or participates in the management
4-27     of a business entity or other organization regulated by or
 5-1     receiving funds from the department;
 5-2                 (3)  owns or controls, directly or indirectly, more
 5-3     than a 10 percent interest in a business entity or other
 5-4     organization regulated by or receiving funds from the department;
 5-5     [or]
 5-6                 (4)  uses or receives a substantial amount of tangible
 5-7     goods, services, or funds from the department, other than
 5-8     compensation or reimbursement authorized by law for commission
 5-9     membership, attendance, or expenses;
5-10                 (5)  is an officer, employee, or paid consultant of a
5-11     trade association in a field regulated by the department;
5-12                 (6)  is an employee of the department; or
5-13                 (7)  is required to register as a lobbyist under
5-14     Chapter 305, Government Code, because of the person's activities
5-15     for compensation on behalf of a profession related to the operation
5-16     of the commission or department.
5-17           (c)  In this section, "trade association" means a nonprofit,
5-18     cooperative, and voluntarily joined association of business or
5-19     professional competitors in this state designed to assist its
5-20     members and its industry or profession in dealing with mutual
5-21     business or professional problems and in promoting their common
5-22     interest.
5-23           SECTION 9.  Section 51.056(b), Occupations Code, is amended
5-24     to read as follows:
5-25           (b)  The presiding officer may vote on all matters before the
5-26     commission as provided by Robert's Rules of Order.
5-27           SECTION 10.  Sections 51.057(a) and (c), Occupations Code,
 6-1     are amended to read as follows:
 6-2           (a)  It is a ground for removal from the commission that a
 6-3     member:
 6-4                 (1)  does not have at the time of appointment the
 6-5     qualifications required for appointment to the commission;
 6-6                 (2)  does not maintain during service on the commission
 6-7     the qualifications required for appointment to the commission;
 6-8                 (3)  violates a prohibition established by Section
 6-9     51.053 [51.054]; or
6-10                 (4)  [cannot, because of illness or disability,
6-11     discharge the member's duties for a substantial part of the
6-12     member's term; or]
6-13                 [(5)]  is absent from more than half of the regularly
6-14     scheduled commission meetings that the member is eligible to attend
6-15     during a calendar year unless the absence is excused by majority
6-16     vote of the commission.
6-17           (c)  If a commission member or the executive director
6-18     [commissioner] has knowledge that a potential ground for removal
6-19     exists, the member or executive director [commissioner] shall
6-20     notify the presiding officer of the commission of the ground.  The
6-21     presiding officer shall then notify the governor that a potential
6-22     ground for removal exists.
6-23           SECTION 11.  Section 51.059(a), Occupations Code, is amended
6-24     to read as follows:
6-25           (a)  The commission shall meet at least once in each quarter
6-26     of the fiscal [calendar] year.
6-27           SECTION 12.  The heading to Subchapter C, Chapter 51,
 7-1     Occupations Code, is amended to read as follows:
 7-2              SUBCHAPTER C.  EXECUTIVE DIRECTOR [COMMISSIONER]
 7-3                       AND OTHER DEPARTMENT PERSONNEL
 7-4           SECTION 13.  Section 51.101, Occupations Code, is amended to
 7-5     read as follows:
 7-6           Sec. 51.101.  EXECUTIVE DIRECTOR [COMMISSIONER]. The
 7-7     commission shall appoint the [commissioner who serves as] executive
 7-8     director of the department.  The executive director serves at the
 7-9     will of the commission.
7-10           SECTION 14.  Section 51.103, Occupations Code, is amended to
7-11     read as follows:
7-12           Sec. 51.103.  EXECUTIVE DIRECTOR [COMMISSIONER] POWERS AND
7-13     DUTIES. (a)  The executive director [commissioner] shall:
7-14                 (1)  perform any duties assigned by the commission and
7-15     other duties [or] specified by law;
7-16                 (2)  administer and enforce the department's programs;
7-17     and
7-18                 (3)  issue licenses[, registrations, certificates, and
7-19     permits] authorized by the laws establishing programs regulated by
7-20     the department [department's programs and prescribe necessary
7-21     forms].
7-22           (b)  The executive director may delegate any power or duty
7-23     assigned to the executive director unless prohibited by statute or
7-24     rule.
7-25           (c)  The executive director may:
7-26                 (1)  impose sanctions and issue orders relating to a
7-27     sanction as provided by Section 51.353; and
 8-1                 (2)  assess an administrative penalty or issue an order
 8-2     relating to an administrative penalty as authorized by a law
 8-3     establishing a program regulated by the department or as provided
 8-4     by Sections 51.301 and 51.302.
 8-5           SECTION 15.  Section 51.104, Occupations Code, is amended to
 8-6     read as follows:
 8-7           Sec. 51.104.  PERSONNEL. [(a)]  The executive director
 8-8     [commissioner] may employ persons to perform the department's work
 8-9     and may prescribe their duties and compensation, subject to the
8-10     personnel policies adopted by the commission and the commission's
8-11     approval of the budget.
8-12           [(b)  Subject to the commission's personnel policies, the
8-13     commissioner may remove any department employee.]
8-14           SECTION 16.  Section 51.105, Occupations Code, is amended to
8-15     read as follows:
8-16           Sec. 51.105.  DIVISION OF RESPONSIBILITIES. The commission
8-17     shall develop and implement policies that clearly define the
8-18     respective responsibilities of the commission, the executive
8-19     director [commissioner], and the staff of the department.
8-20           SECTION 17.  Section 51.107, Occupations Code, is amended to
8-21     read as follows:
8-22           Sec. 51.107.  CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS.
8-23     (a)  The executive director [commissioner or the commissioner's
8-24     designee] shall develop a [an intra-agency] career ladder program.
8-25     The program must require intra-agency postings of all nonentry
8-26     level positions concurrently with any public posting.  [The program
8-27     may not penalize or otherwise adversely affect an employee who
 9-1     chooses not to move from one office location to another.]
 9-2           (b)  The executive director [commissioner or the
 9-3     commissioner's designee] shall develop a system of employee
 9-4     [annual] performance evaluations.  The system must require that
 9-5     evaluations be conducted at least annually.  All merit pay for
 9-6     department employees must be based on the system established under
 9-7     this subsection.
 9-8           SECTION 18.  Section 51.108, Occupations Code, is amended to
 9-9     read as follows:
9-10           Sec. 51.108.  EQUAL EMPLOYMENT OPPORTUNITY POLICY[; REPORT].
9-11     (a)  The executive director [commissioner or the commissioner's
9-12     designee] shall prepare and maintain a written policy statement to
9-13     assure implementation of an equal employment opportunity program
9-14     under which all personnel transactions are made without regard to
9-15     race, color, disability, sex, religion, age, or national origin.
9-16     The policy statement must include:
9-17                 (1)  [personnel policies, including] policies related
9-18     to recruitment, evaluation, selection, appointment, training, and
9-19     promotion of personnel;
9-20                 (2)  a comprehensive analysis of the department
9-21     workforce that meets federal and state guidelines;
9-22                 (3)  procedures by which a determination can be made of
9-23     significant underuse in the department workforce of all persons for
9-24     whom federal or state guidelines encourage a more equitable
9-25     balance; and
9-26                 (4)  reasonable methods to appropriately address those
9-27     areas of significant underuse.
 10-1          (b)  A policy statement prepared under Subsection (a) must
 10-2    cover an annual period, be updated at least annually, and be filed
 10-3    with the governor.
 10-4          [(c)  The governor shall deliver a biennial report to the
 10-5    legislature based on the information received under Subsection (b).
 10-6    The report may be made separately or as a part of other biennial
 10-7    reports made to the legislature.]
 10-8          SECTION 19.  Section 51.201, Occupations Code, is amended to
 10-9    read as follows:
10-10          Sec. 51.201.  GENERAL POWERS AND DUTIES OF COMMISSION. (a)
10-11    The commission shall:
10-12                (1)  supervise the executive director's
10-13    [commissioner's] administration of the department;
10-14                (2)  formulate the policy objectives for the
10-15    department; and
10-16                (3)  approve the department's operating budget and the
10-17    department's requests for legislative appropriations.
10-18          (b)  The commission:
10-19                (1)  may adopt rules as necessary for its own
10-20    procedures; and
10-21                (2)  shall adopt rules as necessary to implement this
10-22    chapter.
10-23          SECTION 20.  Section 51.202, Occupations Code, is amended to
10-24    read as follows:
10-25          Sec. 51.202.  FEES. (a)  The commission shall set fees, in
10-26    amounts reasonable and necessary to cover the costs of
10-27    administering the programs or activities, for:
 11-1                (1)  licenses[, registrations, certificates, titles,
 11-2    and permits] issued by the department [commissioner];
 11-3                (2)  license[, registration, certificate, title, and
 11-4    permit] renewals and late renewals;
 11-5                (3)  examinations; and
 11-6                (4)  any other program or activity administered by the
 11-7    department for which a fee is authorized.
 11-8          (b)  The executive director [commissioner] by rule may
 11-9    provide for prorating [the] fees [set by the commission] for the
11-10    [initial] issuance of a license[, registration, certificate, or
11-11    permit], so that a person regulated by the department pays only
11-12    that portion of the applicable fee that is allocable to the number
11-13    of months during which the license[, registration, certificate, or
11-14    permit] is valid.
11-15          (c)  The executive director [commissioner] shall develop cost
11-16    management procedures that enable the commission to determine with
11-17    reasonable accuracy the cost to the department of each program and
11-18    activity for which a fee is charged.
11-19          SECTION 21.  Section 51.203, Occupations Code, is amended to
11-20    read as follows:
11-21          Sec. 51.203.  RULES ADOPTED BY EXECUTIVE DIRECTOR. The
11-22    executive director [commissioner] shall adopt rules as necessary to
11-23    implement each [this chapter and any other] law establishing a
11-24    program regulated by the department.
11-25          SECTION 22.  Section 51.204, Occupations Code, is amended to
11-26    read as follows:
11-27          Sec. 51.204.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
 12-1    BIDDING. (a)  The executive director [commissioner] may not adopt
 12-2    rules restricting advertising or competitive bidding by a license
 12-3    holder [person regulated by the department] except to prohibit
 12-4    false, misleading, or deceptive practices [by that person].
 12-5          (b)  The executive director [commissioner] may not include in
 12-6    rules to prohibit false, misleading, or deceptive practices by a
 12-7    license holder [person regulated by the department] a rule that:
 12-8                (1)  restricts the use of any advertising medium;
 12-9                (2)  restricts the license holder's [person's] personal
12-10    appearance or the use of the license holder's [person's] voice in
12-11    an advertisement;
12-12                (3)  relates to the size or duration of an
12-13    advertisement [used by the person]; or
12-14                (4)  restricts the use of a trade name in advertising
12-15    [by the person].
12-16          SECTION 23. Section 51.205, Occupations Code, is amended to
12-17    read as follows:
12-18          Sec. 51.205.  LICENSE EXPIRATION AND RENEWAL. (a)  The
12-19    executive director [commission] may adopt a system under which
12-20    licenses[, registrations, certificates, or permits] expire annually
12-21    [on various dates during the year] and may provide for a renewal
12-22    period that exceeds 12 months.
12-23          (b)  The executive director [commission] shall notify a
12-24    person regulated by the department of the impending expiration of
12-25    the person's license[, registration, certificate, or permit].
12-26          SECTION 24. Section 51.251(a), Occupations Code, is amended
12-27    to read as follows:
 13-1          (a)  The department shall prepare information of public
 13-2    interest describing the functions of the commission and department
 13-3    and the procedures by which complaints are filed with and resolved
 13-4    by the commission or executive director [department].
 13-5          SECTION 25. Section 51.252, Occupations Code, is amended to
 13-6    read as follows:
 13-7          Sec. 51.252.  COMPLAINTS. (a)  The executive director
 13-8    [commissioner by rule] shall establish methods by which consumers
 13-9    and service recipients are notified of the name, mailing address,
13-10    and telephone number of the department for the purpose of directing
13-11    complaints to the department.  [The department may provide for that
13-12    notice:]
13-13                [(1)  on each registration form, application, or
13-14    written contract for services of a person regulated by the
13-15    department;]
13-16                [(2)  on a sign prominently displayed in the place of
13-17    business of each person regulated by the department; or]
13-18                [(3)  in a bill for service provided by a person
13-19    regulated by the department.]
13-20          (b)  The department shall keep an information file about each
13-21    complaint filed with the [commission or] department that the
13-22    commission or executive director [department] has authority to
13-23    resolve.
13-24          (c)  If a written complaint is filed that [with] the
13-25    commission or executive director [department that the commission or
13-26    department] has authority to resolve, the department, at least
13-27    quarterly and until final disposition of the complaint, shall
 14-1    notify the parties to the complaint of the status of the complaint
 14-2    unless the notice would jeopardize an [undercover] investigation.
 14-3          SECTION 26. Section 51.301, Occupations Code, is amended to
 14-4    read as follows:
 14-5          Sec. 51.301.  IMPOSITION OF PENALTY. The executive director
 14-6    or [In addition to or in lieu of a sanction imposed on a person
 14-7    under Section 51.353, the] commission may impose an administrative
 14-8    penalty against a person who violates:
 14-9                (1)  a law establishing a regulatory program
14-10    administered by the department; or
14-11                (2)  a rule adopted or order issued by the executive
14-12    director or commission [on the person].
14-13          SECTION 27. Section 51.302, Occupations Code, is amended to
14-14    read as follows:
14-15          Sec. 51.302.  AMOUNT OF PENALTY. (a)  If the relevant law
14-16    establishing a program regulated by the department does not state
14-17    the maximum amount of an administrative penalty under that law, the
14-18    amount of the penalty shall be assessed by the commission or
14-19    executive director in an amount that [The amount of the
14-20    administrative penalty] may not exceed $5,000 per day [$1,000] for
14-21    each violation.  Each day a violation continues or occurs is a
14-22    separate violation for purposes of imposing a penalty.
14-23          (b)  The amount of the penalty shall be based on:
14-24                (1)  the seriousness of the violation;
14-25                (2)  the respondent's history of previous violations;
14-26                (3)  the amount necessary to deter a future violation;
14-27                (4)  efforts made by the respondent to correct the
 15-1    violation; and
 15-2                (5)  any other matter that justice may require.
 15-3          SECTION 28. Subchapter F, Chapter 51, Occupations Code, is
 15-4    amended by adding Section 51.3025 to read as follows:
 15-5          Sec. 51.3025.  IMPOSITION OF SANCTION. A proceeding under
 15-6    this subchapter imposing an administrative penalty may be combined
 15-7    with a proceeding to impose an administrative sanction.  If a
 15-8    sanction is imposed in a proceeding under this subchapter, the
 15-9    requirements of this subchapter apply to the imposition of the
15-10    sanction.
15-11          SECTION 29. Section 51.303, Occupations Code, is amended to
15-12    read as follows:
15-13          Sec. 51.303.  [REPORT AND] NOTICE OF VIOLATION AND PENALTY.
15-14    [(a)]  If, after investigation of a possible violation and the
15-15    facts surrounding the possible violation, the department
15-16    [commissioner] determines that a violation occurred, the department
15-17    [commissioner] shall issue to the respondent a notice of alleged
15-18    violation [preliminary report] stating:
15-19                (1)  [the facts on which the determination is based;
15-20    and]
15-21                [(2)  the commissioner's recommendation on the
15-22    imposition of the administrative penalty, including a
15-23    recommendation on the amount of the penalty.]
15-24          [(b)  Not later than the 14th day after the date the
15-25    preliminary report is issued, the commissioner shall give written
15-26    notice of the violation to the person on whom the penalty may be
15-27    imposed.]
 16-1          [(c)  The notice issued under this section must:]
 16-2                [(1)  include] a brief summary of the alleged
 16-3    violation;
 16-4                (2)  [state] the amount of the recommended
 16-5    administrative penalty; and
 16-6                (3)  that [inform] the respondent has [person of] the
 16-7    [person's] right to a hearing to contest the alleged [on the
 16-8    occurrence of the] violation, the amount of the penalty, or both.
 16-9          SECTION 30. Section 51.304, Occupations Code, is amended to
16-10    read as follows:
16-11          Sec. 51.304.  PENALTY TO BE PAID OR HEARING REQUESTED. (a)
16-12    Not later than the 20th day after the date the respondent [person]
16-13    receives the notice, the respondent [person] may:
16-14                (1)  accept the department's [commissioner's]
16-15    determination and recommended administrative penalty; or
16-16                (2)  make a written request for a hearing on that
16-17    determination.
16-18          (b)  If the respondent [person] accepts the department's
16-19    [commissioner's] determination, the executive director [commission]
16-20    by order shall approve the determination and require the person to
16-21    pay the recommended penalty.
16-22          SECTION 31. Sections 51.305(a) and (b), Occupations Code, are
16-23    amended to read as follows:
16-24          (a)  If the respondent [person] requests a hearing [or fails
16-25    to respond in a timely manner to the notice], the department
16-26    [commissioner] shall set a hearing and give written notice of the
16-27    hearing to the respondent [person].
 17-1          (b)  The executive director [commissioner] may employ a
 17-2    hearings officer to conduct the hearing [for this purpose].
 17-3          SECTION 32. Section 51.306, Occupations Code, is amended by
 17-4    amending Subsection (b) and adding Subsection (c) to read as
 17-5    follows:
 17-6          (b)  The department [commissioner] shall give notice of the
 17-7    [commission's] order to the respondent [person].
 17-8          (c)  The order under this section [notice] must include:
 17-9                (1)  separate statements of the findings of fact and
17-10    conclusions of law;
17-11                (2)  the amount of any penalty imposed;
17-12                (3)  a statement of the right of the respondent
17-13    [person] to judicial review of the [commission's] order; and
17-14                (4)  any other information required by law.
17-15          SECTION 33. Section 51.307, Occupations Code, is amended to
17-16    read as follows:
17-17          Sec. 51.307.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL. (a)
17-18    Not later than the 30th day after the date the commission's order
17-19    becomes final, the respondent [person] shall:
17-20                (1)  pay the penalty; or
17-21                (2)  file a petition for judicial review contesting the
17-22    order [fact of the violation, the amount of the penalty, or both,]
17-23    and:
17-24                      (A)  forward the penalty [amount imposed] to the
17-25    department for deposit in an escrow account; or
17-26                      (B)  give the department a supersedeas bond in a
17-27    form approved by the executive director [commissioner] that:
 18-1                            (i)  is for the amount of the penalty; and
 18-2                            (ii)  is effective until judicial review of
 18-3    the decision is final.
 18-4          (b)  A respondent [person] who is financially unable to
 18-5    comply with Subsection (a)(2) is entitled to judicial review if the
 18-6    respondent [person] files with the court, as part of the
 18-7    respondent's [person's] petition for judicial review, a sworn
 18-8    statement that the respondent [person] is unable to meet the
 18-9    requirements of that subsection.
18-10          SECTION 34. Section 51.309, Occupations Code, is amended to
18-11    read as follows:
18-12          Sec. 51.309.  REMITTANCE OF PENALTY AND INTEREST. (a)  If,
18-13    after judicial review, the administrative penalty is reduced or not
18-14    imposed, the executive director [commissioner] shall:
18-15                (1)  remit to the person the appropriate amount, plus
18-16    accrued interest, if the person paid the amount of the penalty; or
18-17                (2)  execute a release of the bond, if the person
18-18    posted a supersedeas bond.
18-19          (b)  The interest paid under Subsection (a)(1) is accrued at
18-20    the rate charged on loans to depository institutions by the New
18-21    York Federal Reserve Bank.  The interest shall be paid for the
18-22    period beginning on the date the penalty is paid to the department
18-23    [commissioner] and ending on the date the penalty is remitted.
18-24          SECTION 35. Section 51.310(a), Occupations Code, is amended
18-25    to read as follows:
18-26          (a)  The executive director [commissioner] by rule shall
18-27    prescribe procedures for the determination and appeal of a decision
 19-1    to impose an administrative penalty.
 19-2          SECTION 36. Section 51.351(b), Occupations Code, is amended
 19-3    to read as follows:
 19-4          (b)  The department, during reasonable business hours, may:
 19-5                (1)  enter the business premises of a person regulated
 19-6    by the department or a person suspected of being in violation of or
 19-7    threatening to violate a law establishing a regulatory program
 19-8    administered by the department or a rule or order of the commission
 19-9    or executive director [commissioner] related to a regulatory
19-10    program administered by the department; and
19-11                (2)  examine and copy records pertinent to the
19-12    inspection or investigation.
19-13          SECTION 37. Section 51.352, Occupations Code, is amended to
19-14    read as follows:
19-15          Sec. 51.352.  INJUNCTIVE RELIEF; CIVIL PENALTY. (a)  The
19-16    attorney general or the executive director [commissioner] may
19-17    institute an action for injunctive relief to restrain a violation
19-18    by and to collect a civil penalty from a person that appears to be
19-19    in violation of or threatening to violate a law establishing a
19-20    regulatory program administered by the department or a rule or
19-21    order of the commission or executive director [commissioner]
19-22    related to the regulatory program.
19-23          (b)  [The amount of a civil penalty may not exceed $1,000 for
19-24    each violation or $250,000 in the aggregate.]
19-25          [(c)]  An action filed under this section must be filed in a
19-26    district court in Travis County.
19-27          (c) [(d)]  The attorney general and the department may
 20-1    recover reasonable expenses incurred in obtaining injunctive relief
 20-2    under this section, including court costs, reasonable attorney's
 20-3    fees, investigative costs, witness fees, and deposition expenses.
 20-4          SECTION 38. Section 51.353, Occupations Code, is amended to
 20-5    read as follows:
 20-6          Sec. 51.353.  ADMINISTRATIVE SANCTIONS. (a)  The executive
 20-7    director [commissioner] shall adopt rules relating to
 20-8    administrative sanctions that may be enforced against a license
 20-9    holder [person] regulated by the department.  If a license holder
20-10    [person] violates a law establishing a regulatory program
20-11    administered by the department or a rule or order of the commission
20-12    or executive director [commissioner relating to the program], the
20-13    executive director [commissioner] may:
20-14                (1)  issue a written reprimand to the license holder
20-15    [person that specifies the violation];
20-16                (2)  revoke or suspend the license holder's [person's]
20-17    license[, registration, certificate, or permit]; or
20-18                (3)  place the license holder [person] on probation if
20-19    the person's license[, registration, certificate, or permit] has
20-20    been suspended.
20-21          (b)  If a suspension is probated, the executive director
20-22    [commissioner] may require the license holder [person] to:
20-23                (1)  report regularly to the department [commissioner]
20-24    on matters that are the basis of the probation;
20-25                (2)  limit practice to the areas prescribed by the
20-26    executive director [commissioner]; or
20-27                (3)  continue or renew professional education in those
 21-1    areas that are the basis for the probation until the license holder
 21-2    [person] attains a degree of skill satisfactory to the executive
 21-3    director [commissioner].
 21-4          SECTION 39. Section 51.354, Occupations Code, is amended to
 21-5    read as follows:
 21-6          Sec. 51.354.  RIGHT TO HEARING; ADMINISTRATIVE PROCEDURE. (a)
 21-7    A respondent [person] is entitled to a hearing if the executive
 21-8    director [commissioner] proposes to deny, suspend, or revoke a
 21-9    license[, registration, certificate, or permit].
21-10          (b)  The executive director [commissioner] may employ a
21-11    hearings officer to conduct the hearing [for this purpose].
21-12          (c)  The executive director [commissioner] by rule shall
21-13    prescribe procedures for the determination and appeal of a decision
21-14    to deny, suspend, or revoke a license[, registration, certificate,
21-15    or permit].
21-16          (d)  A proceeding under this chapter to deny, suspend, or
21-17    revoke a license[, registration, certificate, or permit] is
21-18    considered to be a contested case under Chapter 2001, Government
21-19    Code.
21-20          SECTION 40. Sections 51.054, 51.102, 51.106, and 51.206,
21-21    Occupations Code, are repealed.
21-22          SECTION 41. (a)  The change in law made by this Act applies
21-23    only to a proceeding to impose an administrative penalty or
21-24    administrative sanction that is commenced by the Texas Department
21-25    of Licensing and Regulation on or after the effective date of this
21-26    Act.  A proceeding commenced before the effective date of this Act
21-27    is governed by the law in effect on the date the proceeding was
 22-1    commenced, and the former law is continued in effect for that
 22-2    purpose.
 22-3          (b)  A reference in any other law to the commissioner of
 22-4    licensing and regulation means the executive director of the Texas
 22-5    Department of Licensing and Regulation.
 22-6          SECTION 42.  This Act takes effect immediately if it receives
 22-7    a vote of two-thirds of all the members elected to each house, as
 22-8    provided by Section 39, Article III, Texas Constitution.  If this
 22-9    Act does not receive the vote necessary for immediate effect, this
22-10    Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1214 was passed by the House on May
         5, 2001, by the following vote:  Yeas 140, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 1214 on May 24, 2001, by the following vote:  Yeas 132, Nays 0,
         2 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1214 was passed by the Senate, with
         amendments, on May 22, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor