78R304 MXM-D

By:  West                                                         H.B. No. 1403


A BILL TO BE ENTITLED
AN ACT
relating to the regulation of barbers and cosmetologists by the Texas Commission on Barbering and Cosmetology and the abolition of the State Board of Barber Examiners and the Texas Cosmetology Commission. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Title 9, Occupations Code, is amended by adding Chapter 1603 to read as follows:
CHAPTER 1603. TEXAS COMMISSION ON BARBERING AND COSMETOLOGY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1603.001. GENERAL DEFINITIONS. In this chapter: (1) "Commission" means the Texas Commission on Barbering and Cosmetology. (2) "Executive director" means the executive director of the commission. Sec. 1603.002. APPLICATION OF SUNSET ACT. The Texas Commission on Barbering and Cosmetology is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished and this chapter, Chapter 1601, and Chapter 1602 expire September 1, 2015.
[Sections 1603.003-1603.050 reserved for expansion]
SUBCHAPTER B. TEXAS COMMISSION ON BARBERING AND COSMETOLOGY
Sec. 1603.051. COMMISSION; MEMBERSHIP. (a) The Texas Commission on Barbering and Cosmetology consists of 15 members appointed by the governor as follows: (1) five members who hold licenses issued under Chapter 1601, one of whom must hold a Class A barber license, one of whom must own a barbershop, and one of whom must own a barber school; (2) five members who hold licenses issued under Chapter 1602, one of whom must hold an operator license, one of whom must own a beauty or specialty shop, and one of whom must own a private beauty culture school; and (3) five public members. (b) For the purposes of Section 1603.154 only, the executive director of the Texas Workforce Commission or that official's designee is an ex officio member of the commission with voting privileges. (c) Appointments to the commission shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointees. Sec. 1603.052. PUBLIC MEMBER ELIGIBILITY. A person may not be a public member of the commission if the person or the person's spouse: (1) is registered, certified, or licensed by a regulatory agency in the field of barbering or cosmetology; (2) is employed by or participates in the management of a business entity or other organization regulated by or receiving money from the commission; (3) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by or receiving money from the commission; or (4) uses or receives a substantial amount of tangible goods, services, or money from the commission, other than compensation or reimbursement authorized by law for commission membership, attendance, or expenses. Sec. 1603.053. MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest. (b) A person may not be a member of the commission and may not be a commission employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) and its subsequent amendments, if: (1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of barbering or cosmetology; or (2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of barbering or cosmetology. (c) A person may not be a member of the commission or act as the general counsel to the commission if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the commission. Sec. 1603.054. TERMS; VACANCY. (a) Commission members serve staggered six-year terms, with the terms of five members expiring on February 1 of each odd-numbered year. (b) If a vacancy occurs during a member's term, the governor shall appoint a replacement to fill the unexpired term. Sec. 1603.055. GROUNDS FOR REMOVAL. (a) It is a ground for removal from the commission that a member: (1) does not have at the time of taking office the qualifications required by Section 1603.051; (2) does not maintain during service on the commission the qualifications required by Section 1603.051; (3) is ineligible for membership under Section 1603.052 or 1603.053; (4) cannot, because of illness or disability, discharge the member's duties for a substantial part of the member's term; or (5) is absent from more than half of the regularly scheduled commission meetings that the member is eligible to attend during a calendar year without an excuse approved by a majority vote of the commission. (b) The validity of an action of the commission is not affected by the fact that it is taken when a ground for removal of a commission member exists. (c) If the executive director has knowledge that a potential ground for removal exists, the executive director shall notify the presiding officer of the commission of the potential ground. The presiding officer shall then notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal involves the presiding officer, the executive director shall notify the next highest ranking officer of the commission, who shall then notify the governor and the attorney general that a potential ground for removal exists. Sec. 1603.056. PRESIDING OFFICER. The governor shall designate a member of the commission as the presiding officer of the commission to serve in that capacity at the will of the governor. Sec. 1603.057. COMMISSION MEMBER TRAINING. (a) A person who is appointed to and qualifies for office as a member of the commission may not vote, deliberate, or be counted as a member in attendance at a meeting of the commission until the person completes a training program that complies with this section. (b) The training program must provide the person with information regarding: (1) this chapter and Chapters 1601 and 1602; (2) the programs operated by the commission; (3) the role and functions of the commission; (4) the rules of the commission, with an emphasis on the rules that relate to disciplinary and investigatory authority; (5) the current budget for the commission; (6) the results of the most recent formal audit of the commission; (7) the requirements of: (A) the open meetings law, Chapter 551, Government Code; (B) the public information law, Chapter 552, Government Code; (C) the administrative procedure law, Chapter 2001, Government Code; and (D) other laws relating to public officials, including conflict-of-interest laws; and (8) any applicable ethics policies adopted by the commission or the Texas Ethics Commission. (c) A person appointed to the commission is entitled to reimbursement, as provided by the General Appropriations Act, for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office.
[Sections 1603.058-1603.100 reserved for expansion]
SUBCHAPTER C. EXECUTIVE DIRECTOR AND PERSONNEL
Sec. 1603.101. EXECUTIVE DIRECTOR AND OTHER PERSONNEL. (a) The commission may employ an executive director. (b) The executive director may hire other personnel as necessary to implement this chapter. Sec. 1603.102. DIVISION OF RESPONSIBILITIES. The commission shall develop and implement policies that clearly separate the policy-making responsibilities of the commission and the management responsibilities of the executive director and staff of the commission. Sec. 1603.103. QUALIFICATIONS AND STANDARDS OF CONDUCT INFORMATION. The executive director or the executive director's designee shall provide to members of the commission and to agency employees, as often as necessary, information regarding the requirements for office or employment under this chapter, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state officers or employees. Sec. 1603.104. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT. (a) The executive director or the executive director's designee shall prepare and maintain a written policy statement that implements a program of equal employment opportunity to ensure that all personnel decisions are made without regard to race, color, disability, sex, religion, age, or national origin. (b) The policy statement must include: (1) personnel policies, including policies relating to recruitment, evaluation, selection, training, and promotion of personnel, that show the intent of the commission to avoid the unlawful employment practices described by Chapter 21, Labor Code; and (2) an analysis of the extent to which the composition of the commission's personnel is in accordance with state and federal law and a description of reasonable methods to achieve compliance with state and federal law. (c) The policy statement must: (1) be updated annually; (2) be reviewed by the Commission on Human Rights for compliance with Subsection (b)(1); and (3) be filed with the governor's office. Sec. 1603.105. TRAINING FOR EMPLOYEES ON STATE INCENTIVE PROGRAM. The executive director or the executive director's designee shall provide to agency employees information and training on the benefits and methods of participation in the state employee incentive program under Subchapter B, Chapter 2108, Government Code.
[Sections 1603.106-1603.150 reserved for expansion]
SUBCHAPTER D. COMMISSION POWERS AND DUTIES
Sec. 1603.151. RULES. The commission shall adopt rules consistent with this chapter for: (1) the administration of this chapter and the operation of the commission; (2) the administration of Chapter 1601; and (3) the administration of Chapter 1602. Sec. 1603.152. FEES. The commission shall adopt application, examination, licensing, and renewal fees in amounts that are reasonable and necessary to provide sufficient revenue to cover the costs of administering the programs under the authority of the commission. The fees set by the commission may be adjusted so that the total fees collected are sufficient to meet the expenses of administering the commission's responsibilities. Sec. 1603.153. BARBERS. (a) In administering Chapter 1601, only the public members, the ex officio member, and the five members appointed under Section 1603.051(a)(1) may adopt rules or participate in disciplinary proceedings under this chapter. (b) The presence of six of those members is required for a quorum under this section. Sec. 1603.154. COSMETOLOGISTS. (a) In administering Chapter 1602, only the public members, the ex officio member, and the five members appointed under Section 1603.051(a)(2) may adopt rules or participate in disciplinary proceedings under this chapter. (b) The presence of six of those members is required for a quorum under this section.
[Sections 1603.155-1603.200 reserved for expansion]
SUBCHAPTER E. PUBLIC PARTICIPATION AND COMPLAINT PROCEDURES
Sec. 1603.201. PUBLIC PARTICIPATION. The commission shall develop and implement policies that provide the public with a reasonable opportunity to appear before the commission and to speak on any issue under the jurisdiction of the commission. Sec. 1603.202. COMPLAINTS. (a) The commission shall maintain a file on each written complaint filed with the commission. The file must include: (1) the name of the person who filed the complaint; (2) the date the complaint is received by the commission; (3) the subject matter of the complaint; (4) the name of each person contacted in relation to the complaint; (5) a summary of the results of the review or investigation of the complaint; and (6) an explanation of the reason the file was closed, if the commission closed the file without taking action other than to investigate the complaint. (b) The commission shall provide to the person filing the complaint and to each person who is a subject of the complaint a copy of the commission's policies and procedures relating to complaint investigation and resolution. (c) The commission, at least quarterly until final disposition of the complaint, shall notify the person filing the complaint and each person who is a subject of the complaint of the status of the investigation unless the notice would jeopardize an undercover investigation. SECTION 2. Sections 1601.001(a)(3), (4), (5), and (8), Occupations Code, are amended to read as follows: (3) "Commission" ["Board"] means the Texas Commission on Barbering and Cosmetology [State Board of Barber Examiners]. (4) "Certificate" means a certificate of registration issued by the commission under this chapter [board]. (5) "License" means a license issued by the commission under this chapter [board]. (8) "Permit" means a permit issued by the commission under this chapter [board]. SECTION 3. Section 1601.003, Occupations Code, is amended to read as follows: Sec. 1601.003. APPLICATION OF CHAPTER. This chapter does not apply to a person who: (1) does not represent or advertise to the public directly or indirectly that the person is authorized by the commission [board] to practice barbering; and (2) is: (A) a physician or registered nurse licensed in this state and operating within the scope of the person's license; (B) a commissioned or authorized medical or surgical officer of the United States armed forces; (C) a person regulated under Chapter 1602, if the person practices within the scope of a license or certificate issued by the commission under that chapter [Texas Cosmetology Commission]; or (D) an inmate in the institutional division of the Texas Department of Criminal Justice who performs barbering during the person's incarceration. SECTION 4. Section 1601.151, Occupations Code, is amended to read as follows: Sec. 1601.151. GENERAL POWERS AND DUTIES OF COMMISSION [BOARD]. (a) The commission [board] shall maintain an office in Austin. (b) The commission [board] shall adopt rules for the transaction of the commission's [board's] business. (c) The commission [board] shall adopt a seal for the authentication of its orders, certificates, and records. (d) The commission [board] may: (1) adopt and enforce all rules necessary for the performance of its duties under this chapter; (2) establish standards of conduct and ethics for persons practicing under this chapter; and (3) regulate any area of the practice or teaching of barbering to implement the purposes and intent of this chapter, or to ensure strict compliance with and enforcement of this chapter. (e) The commission [board] by rule may define any term necessary to administer or enforce this chapter. SECTION 5. Section 1601.152, Occupations Code, is amended to read as follows: Sec. 1601.152. SANITATION RULES. (a) The commission [board] shall adopt reasonable rules on sanitation for the operation of barbershops, specialty shops, and barber schools. (b) The executive director of the commission [board] shall send a copy of the rules to each barber, barber school, or license holder. SECTION 6. Section 1601.153, Occupations Code, is amended to read as follows: Sec. 1601.153. RULES RESTRICTING ADVERTISING OR COMPETITIVE BIDDING. (a) The commission [board] may not adopt rules restricting advertising or competitive bidding by a person regulated by the commission under this chapter [board] except to prohibit false, misleading, or deceptive practices by that person. (b) The commission [board] may not include in its rules to prohibit false, misleading, or deceptive practices by a person regulated by the commission under this chapter [board] a rule that: (1) restricts the use of any advertising medium; (2) restricts the person's personal appearance or the use of the person's voice in an advertisement; (3) relates to the size or duration of an advertisement by the person; or (4) restricts the use of a trade name in advertising by the person. SECTION 7. Section 1601.154, Occupations Code, is amended to read as follows: Sec. 1601.154. INSPECTION BY COMMISSION [BOARD]. (a) The commission [board] may enter and inspect at any time during business hours: (1) any barbershop, specialty shop, or barber school; or (2) any place in which the commission [board] has probable cause to believe that any certificate, license, or permit holder is practicing illegally. (b) The commission [board] may inspect the premises of a certificate, license, or permit holder to investigate a complaint at any time during business hours on receipt of a formal written complaint that a person holding a certificate, license, or permit has violated this chapter. SECTION 8. Section 1601.155, Occupations Code, is amended to read as follows: Sec. 1601.155. AUTHORITY TO SET FEES. The commission [board] by rule shall set fees required by this chapter in amounts necessary to cover the costs of administering the programs to which the fees relate. SECTION 9. Section 1601.156, Occupations Code, is amended to read as follows: Sec. 1601.156. COMMISSION [BOARD] RECORDS. (a) The commission [board] shall keep a record of its proceedings relating to the issuance, refusal, renewal, suspension, and revocation of certificates, licenses, or permits. (b) The commission [board] shall include in the record the name, residence address, and business address of each Class A barber and license or permit holder and the date and number of the certificate, license, or permit. (c) The record is open to public inspection at all reasonable times. SECTION 10. Section 1601.157(a), Occupations Code, is amended to read as follows: (a) The commission [board] shall file annually with the governor and the presiding officer of each house of the legislature a complete and detailed written report accounting for all funds received and disbursed by the commission under this chapter [board] during the preceding fiscal year. SECTION 11. Section 1601.252, Occupations Code, is amended to read as follows: Sec. 1601.252. APPLICATION PROCESS. (a) An application for a certificate, license, or permit must be made on a form prescribed and provided by the commission [board]. (b) The application must contain sworn statements relating to the applicant's education and providing other information required by the commission [board]. SECTION 12. Section 1601.253, Occupations Code, is amended to read as follows: Sec. 1601.253. ELIGIBILITY FOR CLASS A BARBER CERTIFICATE. (a) An applicant for a Class A barber certificate must: (1) be at least 16 years of age; and (2) pass a written and practical examination demonstrating to the commission's [board's] satisfaction the applicant's fitness and competence to practice barbering. (b) The commission [board] shall issue a Class A barber certificate to an applicant who: (1) complies with the application requirements of this chapter; (2) passes the examination with an average grade of at least 75 percent; (3) pays a fee not to exceed $100; and (4) possesses the other qualifications required by this chapter. SECTION 13. Section 1601.254(c), Occupations Code, is amended to read as follows: (c) The commission [board] shall issue a teacher's certificate to an applicant who: (1) passes the appropriate examination; and (2) pays a certificate fee not to exceed: (A) $100, if the applicant fulfills the certificate requirements during the period beginning November 1 of an odd-numbered year and extending through October 31 of the following year; or (B) $50, if the applicant fulfills the certificate requirements during the period beginning November 1 of an even-numbered year and extending through October 31 of the following year. SECTION 14. Sections 1601.256(b) and (d), Occupations Code, are amended to read as follows: (b) An applicant for a barber technician license must: (1) be at least 16 years of age; (2) have completed the seventh grade or the equivalent of the seventh grade; (3) have completed a course of instruction in a commission-approved [board-approved] training program consisting of not less than 300 hours in a period of not less than eight weeks; and (4) submit a $10 administration fee with the application. (d) The commission [board] shall issue a barber technician license to an applicant who: (1) possesses the qualifications described by Subsection (b); (2) passes the appropriate examination; (3) pays a license fee not to exceed $100; and (4) has not committed an act that is a ground for denial of a license. SECTION 15. Sections 1601.257(b) and (c), Occupations Code, are amended to read as follows: (b) An applicant for a manicurist license must: (1) be at least 16 years of age; (2) have completed the seventh grade or the equivalent of the seventh grade; (3) have completed a commission-approved [board-approved] training program consisting of 600 hours of instruction in manicuring; and (4) submit a $10 administration fee with the application. (c) The commission [board] shall issue a manicurist license to an applicant who: (1) possesses the qualifications described by Subsection (b); (2) passes the appropriate examination; (3) pays a license fee not to exceed $30; and (4) has not committed an act that is a ground for denial of a license. SECTION 16. Section 1601.260, Occupations Code, is amended to read as follows: Sec. 1601.260. ELIGIBILITY FOR STUDENT PERMIT. (a) An applicant for a permit to be a student in a barber school must: (1) submit an enrollment application to the commission [board] in the form prescribed by the commission [board]; (2) have completed the seventh grade; (3) satisfy other requirements specified by the commission [board]; and (4) submit with the application a nonrefundable application fee in an amount not to exceed $25. (b) A separate application is required for each enrollment, reenrollment, or transfer enrollment. The application fee applies only to the first enrollment. The commission [board] may not charge the application fee for any later enrollment, reenrollment, or transfer enrollment. SECTION 17. Section 1601.261, Occupations Code, is amended to read as follows: Sec. 1601.261. EXAMINATION APPLICATION. (a) An applicant for an examination must submit to the commission [board] a sworn application on a form prescribed and provided by the commission [board] accompanied by: (1) two photographs of the applicant, one of which accompanies the application and one of which is to be returned to the applicant to be presented at the examination; and (2) the appropriate fee required under this chapter. (b) The commission [board] shall set the fee for an examination necessary to receive a certificate to practice barbering or to practice as a barber technician in an amount not to exceed $50. SECTION 18. Section 1601.262, Occupations Code, is amended to read as follows: Sec. 1601.262. EXAMINATION FOR CLASS A BARBER AND TEACHER'S CERTIFICATES. (a) The commission [board] shall examine applicants for a Class A barber certificate and a teacher's certificate at least four times annually, at times and places designated by the commission [board]. (b) The certification examination must include a practical examination and a written examination selected by the commission [board]. The written examination must be: (1) validated by an independent testing professional; or (2) purchased from a national testing service. (c) The commission [board], on written request by a student, may provide for the early written examination of an applicant for a Class A barber certificate or a teacher's certificate who has completed at least 1,000 hours of instruction in a commission-approved [board-approved] training program. A commission [board] inspector may administer an examination under this subsection at barber schools throughout the state. (d) An examination may not be held at a barber school or barbershop owned, managed, or operated by a commission [board] member. SECTION 19. Section 1601.263, Occupations Code, is amended to read as follows: Sec. 1601.263. EXAMINATION RESULTS. (a) The commission [board] shall notify each examinee of the results of the examination not later than the 30th day after the date an examination is administered. If an examination is graded or reviewed by a national testing service, the commission [board] shall notify each examinee of the results of the examination not later than the 14th day after the date the commission [board] receives the results from the testing service. (b) If the notice of examination results graded or reviewed by a national testing service will be delayed for longer than 90 days after the examination date, the commission [board] shall notify each examinee of the reason for the delay before the 90th day. (c) If requested in writing by a person who fails the examination, the commission [board] shall furnish the person with an analysis of the person's performance on the examination. SECTION 20. Section 1601.264, Occupations Code, is amended to read as follows: Sec. 1601.264. HEALTH CERTIFICATE REQUIREMENT. The commission [board] may not issue a certificate or license until an applicant presents a health certificate from a physician stating that the applicant does not have an infectious or contagious disease. SECTION 21. Section 1601.265, Occupations Code, is amended to read as follows: Sec. 1601.265. WAIVER OF LICENSE REQUIREMENTS; PERSONAL INTERVIEW. (a) The commission [board] may waive any license requirement for an applicant holding a license from another state or country that has license requirements substantially equivalent to those of this state. (b) The commission [board] may not require a personal interview as part of the application process. SECTION 22. Section 1601.266, Occupations Code, is amended to read as follows: Sec. 1601.266. DUPLICATE CERTIFICATE. The commission [board] may issue a duplicate certificate on written application of the certificate holder and payment of a fee not to exceed $10. SECTION 23. Section 1601.267(b), Occupations Code, is amended to read as follows: (b) The person shall: (1) submit an application for the license, certificate, or permit to the commission [board]; (2) pay a fee in an amount prescribed by the commission [board]; and (3) pay the applicable license, certificate, or permit fee. SECTION 24. Section 1601.301(b), Occupations Code, is amended to read as follows: (b) A person who owns, operates, or manages a barbershop or specialty shop must: (1) submit an application to the commission [board] for an appropriate permit for each shop; and (2) register with the commission [board] the person's full name and the location of each shop. SECTION 25. Section 1601.302, Occupations Code, is amended to read as follows: Sec. 1601.302. TEMPORARY BARBERSHOP PERMIT. (a) A person who opens a new barbershop shall submit, not later than the third day after the date the shop opens, an application to the commission [board] for a temporary barbershop permit accompanied by an inspection fee not to exceed $70. (b) The application must provide: (1) the permanent address of the barbershop; (2) the legal description of the premises to be licensed; and (3) other information required by the commission [board]. SECTION 26. Section 1601.303, Occupations Code, is amended to read as follows: Sec. 1601.303. ISSUANCE OF BARBERSHOP PERMIT. The commission [board] shall issue a barbershop permit to an applicant if: (1) the applicant holds a Class A barber certificate; (2) the applicant has practiced barbering for at least 12 months; and (3) the shop meets the minimum health standards for barbershops set by the commission [board] and all other rules of the commission [board]. SECTION 27. Sections 1601.304(b) and (c), Occupations Code, are amended to read as follows: (b) An applicant for a manicurist specialty shop permit must submit: (1) an application that includes: (A) the shop's address; (B) the legal description of the premises for which the permit is sought; and (C) any other information required by the commission [board]; and (2) an inspection fee in an amount not to exceed $50. (c) As soon as practicable after receipt of the application and fee, the commission [board] shall issue a temporary manicurist specialty shop permit to the applicant. The applicant may operate the applicant's shop under the temporary permit until a permanent permit is issued. SECTION 28. Section 1601.305, Occupations Code, is amended to read as follows: Sec. 1601.305. ISSUANCE OF MANICURIST SPECIALTY SHOP PERMIT. The commission [board] shall issue a permanent manicurist specialty shop permit to an applicant if: (1) the applicant holds a manicurist license; and (2) the shop meets the minimum health standards for manicurist specialty shops set by the commission [board], as determined by a commission [board] inspection, and any other requirements imposed by commission [board] rule. SECTION 29. Section 1601.309, Occupations Code, is amended to read as follows: Sec. 1601.309. PRACTICE BY COSMETOLOGIST AT SPECIALTY SHOP PROHIBITED. A person who holds a license, permit, or certificate issued by the commission under Chapter 1602 [Texas Cosmetology Commission] may not practice under that authority at a specialty shop regulated under this chapter. SECTION 30. Section 1601.310, Occupations Code, is amended to read as follows: Sec. 1601.310. RELOCATION OF SPECIALTY SHOP. (a) The holder of a specialty shop permit may move the person's specialty shop to a different location if the person receives commission [board] approval for the new location. (b) The permit holder must notify the commission [board] of the move not later than the 10th day before the date the move is scheduled to occur. SECTION 31. Section 1601.352, Occupations Code, is amended to read as follows: Sec. 1601.352. APPLICATION FOR BARBER SCHOOL PERMIT. (a) An applicant for a barber school permit must demonstrate to the commission [board] that the school meets the requirements of this subchapter for issuance of a permit. (b) Before issuing a barber school permit, the commission [board] must determine that the applicant is financially sound and capable of fulfilling the applicant's commitments for training. SECTION 32. Section 1601.353, Occupations Code, is amended to read as follows: Sec. 1601.353. REQUIRED FACILITIES AND EQUIPMENT. (a) The commission [board] may not approve an application for a permit for a barber school that provides training leading to issuance of a Class A barber certificate unless the school has: (1) an adequate school site housed in a substantial building of permanent construction containing at least 2,800 square feet of floor space, divided into: (A) a senior department; (B) a junior department; (C) a class theory room; (D) a supply room; (E) an office space; (F) a dressing and cloak room; and (G) two sanitary, modern, separate restrooms, each equipped with one commode and one of which is also equipped with a urinal; (2) a hard-surface floor-covering of tile or other suitable material; (3) at least 20 modern barber chairs, including a cabinet and mirror for each chair; (4) a lavatory behind every two barber chairs; (5) a liquid sterilizer for each barber chair; (6) an adequate number of latherers, vibrators, and hair dryers for student use; (7) adequate lighting for each room; (8) at least 20 classroom chairs, a blackboard, anatomical charts of the head, neck, and face, and one barber chair in the class theory room; (9) a library with library facilities available to students containing at least one medical dictionary and a standard work on human anatomy; (10) adequate drinking fountain facilities, with at least one for each floor; (11) adequate toilet facilities for the students; and (12) adequate fire-fighting equipment. (b) An applicant for a barber school permit must submit to the commission [board]: (1) a detailed drawing and chart of the proposed physical layout of the school, showing the departments, floor space, equipment, lights, and outlets; (2) photographs of the proposed site for the school, including the interior and exterior of the building, rooms, and departments; (3) a detailed copy of the training program; (4) a copy of the catalogue and promotional literature of the school; (5) a copy of the building lease or proposed building lease if the building is not owned by the school; (6) a sworn statement showing the ownership of the school; and (7) a permit fee not to exceed $1,000. SECTION 33. Section 1601.354, Occupations Code, is amended to read as follows: Sec. 1601.354. PREREQUISITES FOR GRADUATION. (a) The commission [board] may not approve an application for a barber school permit unless the school requires as a prerequisite for graduation the following hours of instruction: (1) for a barber technician, 300 hours of instruction completed in a course of not less than eight weeks; (2) for a Class A barber, 1,500 hours of instruction completed in a course of not less than nine months, at least 800 hours of which is in the actual practice of cutting hair as a primary service; (3) for a manicurist, 600 hours of instruction completed in a course of not less than 16 weeks; and (4) for a teacher, 1,000 hours of instruction completed in a course of not less than six months. (b) If a barber school offers a refresher course, the course must require at least 300 hours of instruction. The commission [board] by rule shall set the curriculum for a refresher course. SECTION 34. Section 1601.355, Occupations Code, is amended to read as follows: Sec. 1601.355. SUPERVISION AND TEACHING REQUIREMENTS. (a) The commission [board] may not approve an application for a permit for a barber school that provides training leading to issuance of a Class A barber certificate unless the school is under the direct supervision and control of a Class A barber certificate holder who presents evidence of at least five years' experience as a practicing barber. (b) Each barber school for which a permit is sought must have at least one teacher who has a teacher's certificate and is capable and qualified to teach to the students the required curriculum of the school. In addition to satisfying other commission [board] requirements, the teacher must demonstrate to the commission [board]: (1) through a written and practical examination an ability to teach the curriculum; and (2) that the teacher is qualified to teach and: (A) has had at least six months' experience as a teacher in an approved school in this state or in another state approved by the commission [board]; or (B) has completed 1,000 hours of instruction in a postgraduate course as a student teacher in a commission-approved [board-approved] barber school in this state. SECTION 35. Section 1601.356, Occupations Code, is amended to read as follows: Sec. 1601.356. INSPECTION BEFORE OPERATION. (a) A person may not operate a barber school or solicit or enroll students until the commission [board] determines, by inspection, that the person has established the school in compliance with this subchapter. (b) A barber school that is not approved by the commission [board] on initial inspection may be reinspected. The commission [board] shall charge a reinspection fee in an amount not to exceed $500. SECTION 36. Sections 1601.3571(a) and (b), Occupations Code, are amended to read as follows: (a) If on January 1 of any year the amount in the barber school tuition protection account is less than $25,000, the commission [board] shall collect a fee from each barber school during that year by applying a percentage to the school's renewal fee at a rate that will bring the balance of the account to $25,000. (b) The comptroller shall invest the account in the same manner as other state funds. Sufficient money from the account shall be appropriated to the commission [board] for the purpose of refunding unused tuition if a barber school ceases operation before its course of instruction is complete. The commission [board] shall administer claims made against the account. SECTION 37. Section 1601.401, Occupations Code, is amended to read as follows: Sec. 1601.401. EXPIRATION OF CERTIFICATE OR LICENSE. (a) The commission [board] by rule may adopt a system under which certificates or licenses expire on various dates during the year. (b) For the year in which the expiration date is changed, the commission [board] shall prorate on a monthly basis certificate or license renewal fees payable on November 1 so that each certificate or license holder pays only that portion of the certificate or license renewal fee that is allocable to the number of months during which the certificate or license is valid. On renewal of the certificate or license on the new expiration date, the certificate or license holder shall pay the total certificate or license renewal fee. SECTION 38. Sections 1601.402(c) and (d), Occupations Code, are amended to read as follows: (c) The commission [board] shall issue a renewal certificate or license on receipt of a renewal application in the form prescribed by the commission [board], accompanied by a renewal fee in an amount equal to the original certificate or license fee but not to exceed $100. (d) The commission [board] may not renew a certificate or license until an applicant presents a health certificate from a physician stating that the applicant does not have an infectious or contagious disease. SECTION 39. Section 1601.403, Occupations Code, is amended to read as follows: Sec. 1601.403. RENEWAL OF TEACHER'S CERTIFICATE. The commission [board] shall renew a teacher's certificate biennially on or before November 1 of each odd-numbered year on payment of a renewal fee not to exceed $100. SECTION 40. Section 1601.404, Occupations Code, is amended to read as follows: Sec. 1601.404. RENEWAL OR REINSTATEMENT OF EXPIRED CERTIFICATE OR LICENSE. (a) A Class A barber or other license holder whose certificate or license has been expired for not more than 30 days may renew the person's certificate or license by applying to the commission [board] and paying the biennial renewal fee. (b) A Class A barber or license holder whose certificate or license has been expired for not more than five years may reinstate the person's certificate or license by applying to the commission [board] and submitting a personal affidavit that the commission [board] determines provides a justification for issuing a certificate or license to the person. The person must pay a fee equal to the amount of the current certificate or license fee and an additional delinquency fee of $30 for each year or part of a year the certificate or license has been expired. (c) A Class A barber or license holder who retires from practice and whose certificate or license has been expired for more than five years may qualify for a new certificate or license by applying to the commission [board] and by: (1) making a proper showing to the commission [board], supported by a personal affidavit; (2) paying an examination fee not to exceed $100; (3) passing a satisfactory examination conducted by the commission [board]; and (4) paying the fee for an original certificate or license. SECTION 41. Section 1601.405, Occupations Code, is amended to read as follows: Sec. 1601.405. RENEWAL WHILE IN ARMED FORCES. (a) The commission [board] may not require a Class A barber, barber technician, teacher, or manicurist who is serving on active duty in the United States armed forces to renew the person's certificate or license. (b) The commission [board] shall issue a renewal certificate or license on application and payment of a renewal fee not later than the 90th day after the date the person is released or discharged from active duty in the armed forces. The renewal fee is: (1) $10 if the application and payment are made during the period beginning November 1 of an odd-numbered year and ending October 31 of the following year; or (2) $5 if the application and payment are made during the period beginning November 1 of an even-numbered year and ending October 31 of the following year. SECTION 42. Section 1601.406(c), Occupations Code, is amended to read as follows: (c) A specialty shop permit holder may renew the permit by submitting to the commission [board] a renewal application accompanied by a renewal fee not to exceed $50. SECTION 43. Section 1601.408, Occupations Code, is amended to read as follows: Sec. 1601.408. RENEWAL OF EXPIRED PERMIT. A person holding a barbershop, specialty shop, or barber school permit that has been expired for more than 30 days may renew the person's permit by submitting to the commission [board] a renewal application accompanied by: (1) the regular renewal fee; and (2) an additional delinquency fee of $30 for each year or part of a year the permit has been expired. SECTION 44. Section 1601.452, Occupations Code, is amended to read as follows: Sec. 1601.452. DISPLAY OF SANITATION RULES. Each barbershop or specialty shop shall post in the shop a copy of the commission's [board's] rules adopted under Section 1601.152. SECTION 45. Section 1601.453, Occupations Code, is amended to read as follows: Sec. 1601.453. LOCATION OF PRACTICE. A person licensed by the commission [board] may practice barbering only at a location for which the commission [board] has issued a barbershop permit, specialty shop permit, or barber school permit. SECTION 46. Section 1601.454, Occupations Code, is amended to read as follows: Sec. 1601.454. PRACTICE AT FACILITY LICENSED OR PERMITTED AS BARBER AND COSMETOLOGIST FACILITY [BY BOARD AND TEXAS COSMETOLOGY COMMISSION]. (a) The commission [board] may not adopt rules to restrict or prohibit practice by a Class A barber or manicurist in a facility solely because the facility is licensed or permitted by [both] the commission under both this chapter and Chapter 1602 [board and the Texas Cosmetology Commission]. (b) If a facility has a license or permit under both this chapter and Chapter 1602 [the board and the Texas Cosmetology Commission license or permit the same facility], the commission [board] may not adopt rules requiring separate treatment of the barbers and cosmetologists practicing in the facility or of their customers, including separate: (1) work areas for barbers and cosmetologists; (2) waiting areas for customers of the barbers and cosmetologists; or (3) restrooms for the barbers and cosmetologists practicing in the facility or for their customers. SECTION 47. Section 1601.502, Occupations Code, is amended to read as follows: Sec. 1601.502. SUPERVISION OF BARBERSHOP. A person may not operate a barbershop unless: (1) the shop is at all times under the exclusive supervision and management of a Class A barber; and (2) no person is practicing on the premises by authority of a license, permit, or certificate issued by the commission under Chapter 1602 [Texas Cosmetology Commission], except as allowed by other law. SECTION 48. Section 1601.503, Occupations Code, is amended to read as follows: Sec. 1601.503. NOTIFICATION OF CHANGE OF LOCATION. A person operating under a barbershop permit may move the operation to another location approved by the commission [board] if the person notifies the commission [board] not later than the 10th day before the date of the move. SECTION 49. Section 1601.552, Occupations Code, is amended to read as follows: Sec. 1601.552. DISPLAY OF SANITATION RULES. Each barber school shall post in the school a copy of the commission's [board's] rules adopted under Section 1601.152. SECTION 50. Section 1601.554, Occupations Code, is amended to read as follows: Sec. 1601.554. CHANGE OF BARBER SCHOOL OWNERSHIP OR LOCATION. (a) If a barber school changes ownership, the commission [board] must be notified of the change not later than the 10th day before the date the change takes effect. (b) A barber school may not change the location of the school unless the school obtains approval from the commission [board] before the change by showing that the proposed location meets the requirements of Subchapter H for issuance of a permit to the school. SECTION 51. Section 1601.556, Occupations Code, is amended to read as follows: Sec. 1601.556. INFORMATION PROVIDED TO PROSPECTIVE STUDENT. The holder of a barber school permit shall furnish each prospective student with: (1) a course outline; (2) a schedule of the tuition and other fees assessed; (3) the school's refund policy required under Section 1601.563; (4) the school's grading policy and rules relating to incomplete grades; (5) the school's rules of operation and conduct, including rules relating to absences; (6) the commission's [board's] name, mailing address, and telephone number for the purpose of directing complaints to the commission [board]; and (7) the current rates of job placement and employment of students who complete a course of training. SECTION 52. Section 1601.557, Occupations Code, is amended to read as follows: Sec. 1601.557. COURSE LENGTH AND CURRICULUM CONTENT. (a) A barber school shall submit to the commission [board] for approval the course length and curriculum content for a course offered by the school. The course length and curriculum content shall be designed to reasonably ensure that a student develops the job skills and knowledge necessary for employment. The school may not implement a course length or curriculum content unless it is approved by the commission [board]. (b) Before issuing or renewing a permit under this chapter, the commission [board] shall require a school to account for all course lengths and curriculum contents. SECTION 53. Section 1601.559(b), Occupations Code, is amended to read as follows: (b) The commission [board] may inspect a school's attendance record book at any time. SECTION 54. Section 1601.561, Occupations Code, is amended to read as follows: Sec. 1601.561. REPORTS TO COMMISSION [BOARD]. (a) A barber school shall submit a monthly progress report to the commission [board] regarding each student attending the school. The report must certify the daily attendance record of each student and the number of credit hours earned by each student during the previous month. (b) On a student's completion of a prescribed course of instruction, the school shall certify to the commission [board] that the student has completed the required number of hours and is eligible to take the appropriate examination. (c) A barber school permit holder shall furnish to the commission [board]: (1) the current course completion rates of students who attend a course of instruction offered by the school; and (2) job placement rates and employment rates of students who complete a course of instruction. SECTION 55. Section 1601.566(d), Occupations Code, is amended to read as follows: (d) The commission [board] may exempt a school from the payment of interest if the school makes a good faith effort to refund the tuition but is unable to locate the student. The school shall provide to the commission [board] on request documentation of the school's effort to locate the student. SECTION 56. Section 1601.601, Occupations Code, is amended to read as follows: Sec. 1601.601. DENIAL, SUSPENSION, OR REVOCATION. The commission [board] shall deny an application for issuance or renewal of, or shall suspend or revoke, a certificate, license, or permit if the applicant or person holding the certificate, license, or permit engages in: (1) gross malpractice; (2) knowingly continuing to practice while having an infectious or contagious disease; (3) knowingly making a false or deceptive statement in advertising; (4) advertising, practicing, or attempting to practice under another person's name or trade name; or (5) an act that violates this chapter or a rule or order of the commission [board]. SECTION 57. Section 1601.603, Occupations Code, is amended to read as follows: Sec. 1601.603. DENIAL OF PERMIT; SUIT. (a) If the commission [board] denies an application for a barber school permit, the school may request in writing the reasons for the refusal. (b) If the barber school meets the requirements for issuance of the permit and shows that the requirements of this chapter have been met, and the commission [board] refuses to issue the permit, the school may file suit in a district court in Travis County to require the commission [board] to issue the permit. (c) A suit under Subsection (b) must be filed not later than the 20th day after the date of the commission's [board's] final order denying issuance of the permit, if registered notice of the order is mailed or it is otherwise shown that the school had notice of the order not later than the 10th day after the date the commission [board] entered the order. SECTION 58. Section 1601.604(a), Occupations Code, is amended to read as follows: (a) The commission [board] shall suspend or revoke the permit of a barber school that directly or indirectly violates this chapter. SECTION 59. Section 1601.605, Occupations Code, is amended to read as follows: Sec. 1601.605. PROBATION FOR ALTERING COURSE LENGTH. The commission [board] shall place on probation a barber school that alters a course length below or above industry standards until the school: (1) provides justification for the alteration; or (2) adjusts the course length to meet industry standards. SECTION 60. Sections 1601.606(a), (b), and (c), Occupations Code, are amended to read as follows: (a) If the commission [board] has reasonable cause to believe that a barber school has violated this chapter or a rule adopted under this chapter, the commission [board] may: (1) order a peer review of the school; or (2) suspend the admission of students to the school. (b) The peer review shall be conducted by a peer review team consisting of knowledgeable persons selected by the commission [board]. The commission [board] shall attempt to provide a balance on a peer review team between members assigned to the team who are from this state and members who are from other states. (c) The peer review team shall provide the commission [board] with an objective assessment of the school's curriculum content and its application. SECTION 61. Sections 1601.651(c), (d), (e), and (f), Occupations Code, are amended to read as follows: (c) In addition to injunctive relief or other remedies provided by law, a barber school that violates this chapter or a rule adopted under this chapter is liable to the state for a civil penalty. The civil penalty may not exceed $1,000 a day for each violation. The attorney general, at the request of the commission [board], may bring a civil action to collect a civil penalty under this subsection. (d) In addition to any other action authorized by law, the commission [board] may institute an action in its own name to enjoin a violation of this chapter or a rule of the commission [board]. (e) The commission [board] is not required to allege or prove: (1) that an adequate remedy at law does not exist; or (2) that substantial or irreparable damage would result from the continued violation. (f) The commission [board] is not required to give an appeal bond in a cause arising under this chapter. SECTION 62. Section 1601.653(a), Occupations Code, is amended to read as follows: (a) A person commits an offense if the person is a barber inspector or other commission [board] employee and the person sells barber supplies or engages in a business, other than barbering, that deals directly with a barber, barbershop, specialty shop, or barber school. SECTION 63. Section 1601.654, Occupations Code, is amended to read as follows: Sec. 1601.654. ENFORCEMENT BY ATTORNEY GENERAL. The attorney general shall represent the commission [board] in an action to enforce this chapter. SECTION 64. Section 1601.701(a), Occupations Code, is amended to read as follows: (a) The commission [board] may impose an administrative penalty on a person for a violation under this section. SECTION 65. Section 1601.703(a), Occupations Code, is amended to read as follows: (a) If the executive director determines that a violation occurred, the executive director may issue to the commission [board] a report stating: (1) the facts on which the determination is based; and (2) the executive director's recommendation on the imposition of an administrative penalty, including a recommendation on the amount of the penalty. SECTION 66. Section 1601.704(b), Occupations Code, is amended to read as follows: (b) If the person accepts the determination and recommended penalty of the executive director, the commission [board] by order shall approve the determination and impose the recommended penalty. SECTION 67. Section 1601.705(b), Occupations Code, is amended to read as follows: (b) The administrative law judge shall make findings of fact and conclusions of law and promptly issue to the commission [board] a proposal for a decision about the occurrence of the violation and the amount of any proposed administrative penalty. SECTION 68. Section 1601.706, Occupations Code, is amended to read as follows: Sec. 1601.706. DECISION BY COMMISSION [BOARD]. (a) Based on the findings of fact, conclusions of law, and proposal for a decision, the commission [board] by order may: (1) find that a violation occurred and impose an administrative penalty; or (2) find that a violation did not occur. (b) The notice of the commission's [board's] order given to the person must include a statement of the right of the person to judicial review of the order. SECTION 69. Section 1601.707, Occupations Code, is amended to read as follows: Sec. 1601.707. OPTIONS FOLLOWING DECISION: PAY OR APPEAL. Not later than the 30th day after the date the commission's [board's] order becomes final, the person shall: (1) pay the administrative penalty; or (2) file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both. SECTION 70. Section 1601.708(a), Occupations Code, is amended to read as follows: (a) Within the 30-day period prescribed by Section 1601.707, a person who files a petition for judicial review may: (1) stay enforcement of the administrative penalty by: (A) paying the penalty to the court for placement in an escrow account; or (B) giving the court a supersedeas bond approved by the court that: (i) is for the amount of the penalty; and (ii) is effective until all judicial review of the commission's [board's] order is final; or (2) request the court to stay enforcement of the penalty by: (A) filing with the court a sworn affidavit of the person stating that the person is financially unable to pay the penalty and is financially unable to give the supersedeas bond; and (B) giving a copy of the affidavit to the executive director by certified mail. SECTION 71. Section 1602.001(1), Occupations Code, is amended to read as follows: (1) "Commission" means the Texas Commission on Barbering and Cosmetology [Commission]. SECTION 72. Section 1602.152, Occupations Code, is amended to read as follows: Sec. 1602.152. RULES RESTRICTING ADVERTISING OR COMPETITIVE BIDDING. (a) The commission may not adopt rules restricting advertising or competitive bidding by a person regulated by the commission under this chapter except to prohibit false, misleading, or deceptive practices by that person. (b) The commission may not include in rules to prohibit false, misleading, or deceptive practices by a person regulated by the commission under this chapter a rule that: (1) restricts the use of any advertising medium; (2) restricts the person's personal appearance or the use of the person's voice in an advertisement; (3) relates to the size or duration of an advertisement by the person; or (4) restricts the use of a trade name in advertising by the person. SECTION 73. Section 1602.155(a), Occupations Code, is amended to read as follows: (a) The commission shall file annually with the governor and the presiding officer of each house of the legislature a complete and detailed written report accounting for all funds received and disbursed by the commission under this chapter during the preceding fiscal year. SECTION 74. Section 1602.405, Occupations Code, is amended to read as follows: Sec. 1602.405. PRACTICE AT FACILITY LICENSED OR PERMITTED AS BARBER AND COSMETOLOGIST FACILITY [BY COMMISSION AND STATE BOARD OF BARBER EXAMINERS]. (a) The commission may not adopt rules to restrict or prohibit practice by a cosmetologist in a facility solely because the facility is licensed or permitted by [both] the commission under both this chapter and Chapter 1601 [and the State Board of Barber Examiners]. (b) If a facility has a license or permit under both this chapter and Chapter 1601 [the commission and the State Board of Barber Examiners license the same facility], the commission may not adopt rules requiring separate treatment of the barbers and cosmetologists practicing in the facility or of their customers, including separate: (1) work areas for barbers and cosmetologists; (2) waiting areas for customers of the barbers and cosmetologists; or (3) restrooms for the barbers and cosmetologists practicing in the facility or for their customers. SECTION 75. Section 232.002, Family Code, is amended to read as follows: Sec. 232.002. LICENSING AUTHORITIES SUBJECT TO CHAPTER. The following are licensing authorities subject to this chapter: (1) Department of Agriculture; (2) Texas Commission on Alcohol and Drug Abuse; (3) Texas Alcoholic Beverage Commission; (4) Texas Appraiser Licensing and Certification Board; (5) Texas Board of Architectural Examiners; (6) Texas Commission on Barbering and Cosmetology [State Board of Barber Examiners]; (7) Texas Board of Chiropractic Examiners; (8) Comptroller of Public Accounts; (9) [Texas Cosmetology Commission; [(10)] Court Reporters Certification Board; (10) [(11)] State Board of Dental Examiners; (11) ((12)] Texas State Board of Examiners of Dietitians; (12) [(13)] Texas Funeral Service Commission; (13) [(14)] Texas Department of Health; (14) [(15)] Texas Department of Human Services; (15) [(16)] Texas Board of Professional Land Surveying; (16) [(17)] Texas Department of Licensing and Regulation; (17) [(18)] Texas State Board of Examiners of Marriage and Family Therapists; (18) [(19)] Texas State Board of Medical Examiners; (19) [(20)] Midwifery Board; (20) [(21)] Texas Natural Resource Conservation Commission; (21) [(22)] Board of Nurse Examiners; (22) [(23)] Texas Board of Occupational Therapy Examiners; (23) [(24)] Texas Optometry Board; (24) [(25)] Parks and Wildlife Department; (25) [(26)] Texas State Board of Examiners of Perfusionists; (26) [(27)] Texas State Board of Pharmacy; (27) [(28)] Texas Board of Physical Therapy Examiners; (28) [(29)] Texas State Board of Plumbing Examiners; (29) [(30)] Texas State Board of Podiatric Medical Examiners; (30) [(31)] Polygraph Examiners Board; (31) [(32)] Texas Commission on Private Security; (32) [(33)] Texas State Board of Examiners of Professional Counselors; (33) [(34)] Texas Board of Professional Engineers; (34) [(35)] Department of Protective and Regulatory Services; (35) [(36)] Texas State Board of Examiners of Psychologists; (36) [(37)] Texas State Board of Public Accountancy; (37) [(38)] Department of Public Safety of the State of Texas; (38) [(39)] Public Utility Commission of Texas; (39) [(40)] Railroad Commission of Texas; (40) [(41)] Texas Real Estate Commission; (41) [(42)] State Bar of Texas; (42) [(43)] Texas State Board of Social Worker Examiners; (43) [(44)] State Board of Examiners for Speech-Language Pathology and Audiology; (44) [(45)] Texas Structural Pest Control Board; (45) [(46)] Board of Tax Professional Examiners; (46) [(47)] Secretary of State; (47) [(48)] Supreme Court of Texas; (48) [(49)] Texas Transportation Commission; (49) [(50)] State Board of Veterinary Medical Examiners; (50) [(51)] Board of Vocational Nurse Examiners; (51) [(52)] Texas Ethics Commission; (52) [(53)] Advisory Board of Athletic Trainers; (53) [(54)] State Committee of Examiners in the Fitting and Dispensing of Hearing Instruments; (54) [(55)] Texas Board of Licensure for Professional Medical Physicists; (55) [(56)] Texas Department of Insurance; (56) [(57)] Texas Board of Orthotics and Prosthetics; (57) [(58)] savings and loan commissioner; (58) [(59)] Texas Juvenile Probation Commission; and (59) [(60)] Texas Lottery Commission under Chapter 466, Government Code. SECTION 76. (a) The State Board of Barber Examiners and the Texas Cosmetology Commission are abolished but continue in existence until September 1, 2004, for the sole purpose of transferring obligations, property, employees, rights, powers, and duties to the Texas Commission on Barbering and Cosmetology created under Chapter 1603, Occupations Code, as added by this Act. The Texas Commission on Barbering and Cosmetology assumes all of the obligations, property, employees, rights, powers, and duties of the State Board of Barber Examiners and the Texas Cosmetology Commission, as they exist immediately before the effective date of this Act. All unexpended funds appropriated to the State Board of Barber Examiners and the Texas Cosmetology Commission are transferred to the Texas Commission on Barbering and Cosmetology. The transfer of the obligations, property, employees, rights, powers, and duties of the State Board of Barber Examiners and the Texas Cosmetology Commission to the Texas Commission on Barbering and Cosmetology must be completed not later than September 1, 2004. (b) All rules of the State Board of Barber Examiners and the Texas Cosmetology Commission are continued in effect as rules of the Texas Commission on Barbering and Cosmetology until superseded by a rule of the Texas Commission on Barbering and Cosmetology. A license, permit, or registration issued by the State Board of Barber Examiners or the Texas Cosmetology Commission is continued in effect as provided by the law in effect immediately before the effective date of this Act. A complaint, investigation, contested case, or other proceeding pending on the effective date of this Act is continued without change in status after the effective date of this Act. SECTION 77. (a) In making the initial appointments to the Texas Commission on Barbering and Cosmetology, the governor shall appoint: (1) two persons described by Section 1603.051(a)(1), Occupations Code, as added by this Act, two persons described by Section 1603.051(a)(2), Occupations Code, as added by this Act, and one public member to serve terms expiring February 1, 2005; (2) two persons described by Section 1603.051(a)(1), Occupations Code, as added by this Act, one person described by Section 1603.051(a)(2), Occupations Code, as added by this Act, and two public members to serve terms expiring February 1, 2007; and (3) one person described by Section 1603.051(a)(1), Occupations Code, as added by this Act, two persons described by Section 1603.051(a)(2), Occupations Code, as added by this Act, and two public members to serve terms expiring February 1, 2009. (b) An initial commission member appointed under this section is exempt from the commission member training requirements under Section 1603.057, Occupations Code, as added by this Act. SECTION 78. The following laws are repealed: (1) Sections 1601.004 and 1602.004, Occupations Code; (2) Subchapters B, C, and E, Chapter 1601, Occupations Code; and (3) Subchapters B, C, and E, Chapter 1602, Occupations Code. SECTION 79. This Act takes effect September 1, 2003.