The House Committee on Licensing & Administrative Procedures
80th Legislature
November 13, 2008
10:00 a.m.
E2.010
Pursuant to a notice posted on November 7, 2008, the House Committee on Licensing & Administrative Procedures met in a public hearing and was called to order by the chair, Representative Flores, at 10:14 a.m.
The roll was answered as follows:
Present: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
A quorum was present.
Charge #1 Study ways to support and promote horse and greyhound racing and breeding programs in Texas by increasing revenue. Review the practice of other states with healthy racing industries and identify which practices might be applied in Texas. Study ways to strengthen and enforce Texas laws to reduce illegal gambling.
Testimony was taken. (See attached witness list.)
Recommendation #1. Amend the Texas Racing Act, and any other related statutes, to allow the Texas Racing Commission the ability to partner with other state agencies that perform economic duties.
Rep. Isett moved to adopt committee recommendation #1.
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #2 (2,3,4). Authorize the partnering state agency to establish a program
to review and promote economic development of the racing industry; to periodically issue
a report on the racing industry's economic condition; and provide venues for discussion of
the economic health and development of the racing industry.
Rep. Isett moved to adopt committee recommendation #2 (2,3,4).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #3 (6). Widen the window for live racing at a Class 4 racetrack to include weekends adjacent to the dates on which livestock shows or exhibitions and county fair activities take place.
Rep. Delwin Jones moved to adopt committee recommendation #3 (6).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #4 (7). Direct the Texas Racing Commission to revisit rules governing the size of an oval to allow Class 3 and Class 4 racetracks to race on the size of the ovals that exist today without having to incur significant expenses to expand the ovals.
Recommendation #5 (8). Direct the Texas Racing Commission to revisit rules relative to the number of stalls required in the barn area to assure they are adequate in number to accommodate the needs for racing each weekend similar to Gillespie.
Rep. Delwin Jones moved to adopt committee recommendations #4 (7) & #5 (8).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #6 (15). Provide the Commission with additional oversight of stewards' and judges' decisions.
Rep. Delwin Jones moved to adopt committee recommendation #6 (15).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #7 (16). Change the definition of "greyhound performance" to allow for more than 13.
Rep. Thompson moved to adopt committee recommendation #7 (16).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #8 (19). Dedicate the current $1 ATM usage to the Racing Commission instead of general revenue.
Rep. Isett moved to adopt committee recommendation #8 (19).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #9 (20). Support all of the Sunset Advisory Commission's recommendations relating to the continuation of the Texas Racing Commission and the abolishment of the Equine Research Account Advisory Committee.
Rep. Thompson moved to adopt committee recommendation #9 (20).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Charge #2 Identify alternative supplemental funding to increase incentives and purses for horse and greyhound trainers and owners.
No recommendations; included in recommendation #2 (2,3,4).
Charge #3 Study current distance requirement provisions in the Alcoholic Beverage Code, and recommend any changes needed to promote clarity and uniformity.
Testimony was taken. (See attached witness list.)
Recommendation #10 (21). Standardize the methodology of measurement to remove confusion and potential conflicts between jurisdiction.
Rep. Thompson moved to adopt committee recommendation #10 (21).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #11 (22). Amend the Alcoholic Beverage Code to incorporate language from other codes and statutes to insure correct interpretation of certain definitions.
Rep. Thompson moved to adopt committee recommendation #11 (22).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #12 (23). Make necessary changes to ensure that the exemptions provided are consistent throughout the Alcoholic Beverage Code.
Rep. Thompson moved to adopt committee recommendation #12 (23).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #13 (24). Clean up language to prevent possible "sham" protests and to ensure protections for persons who establish their business prior to conflicts so that they may transfer or sell their business.
Rep. Thompson moved to adopt committee recommendation #13 (24).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #14 (25). Review language for all non-retail operations to ensure that wholesalers and distributors, who have no contact with alcohol sales directly to the public, are not penalized by the distance provisions.
Rep. Thompson moved to adopt committee recommendation #14 (25).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
(Representative Isett, Carl in chair.)
(Representative Flores in chair.)
Recommendation #15 (34). Allow TABC to apply temporary Restraining Order/Temporary Injunction process that is common in civil litigation to TABC's contested administrative cases in order to stop an immediate threat to the public welfare and authorize TABC to apply expedited hearing procedures to these cases.
Rep. Isett moved to adopt committee recommendation #15 (34).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #16 (27). The Legislature should use extreme cautious in altering current distance requirements since it is virtually impossible to know how many businesses are affected each time distance requirement are changed in the statute.
Rep. Goolsby moved to adopt committee recommendation #16 (27).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Charge #4 Review the Bingo Enabling Act, and recommend needed changes to the licensing process, fee structure, and permitted forms of play. Study whether specific changes are needed to direct a greater share of bingo revenue toward the charities the act was intended to benefit.
Testimony was taken. (See attached witness list.)
Recommendation #17 (28). Pass the recommendations made by the Committee to the 80th Legislature, as refined by the Committee's staff working with the Lottery Commission and bingo groups, to streamline the bingo accounting and licensing systems, reduce unnecessary regulatory costs imposed on charities and improve enforcement of the bingo laws.
Rep. Isett moved to adopt committee recommendation #17 (28).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #18 (29). In light of the fact that total revenues paid to state and local governments from taxes and fees imposed on charitable bingo far exceed appropriations for enforcement, increase appropriations to the Charitable Bingo Division to allow full enforcement of the Bingo Enabling Act and bingo administrative rules.
Rep. Isett moved to adopt committee recommendation #18 (29).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Charge #5 Study the possible need for regulation of charitable raffles.
No recommendations.
Charge #6 Examine the current practice of certain occupations, and determine whether these occupations pose any significant threat to the health, safety and welfare of the general public to the extent that increased regulation is needed.
No recommendations.
Charge #7 Monitor the agencies and programs under the committee's jurisdiction.
Texas Department of Licensing & Regulation
Testimony was taken. (See attached witness list).
Recommendation #19 (36). Amend Chapter 51, Occupations Code, to allow the Agency to issue Emergency licenses in cases of disasters, and to allow the agency to issue Emergency Orders when natural or other disasters create emergency situations.
Recommendation #20 (37). Allow the agency to issue temporary licenses, similar to the authority already provided individually in the Air Conditioning Program, across all programs.
Rep. Delwin Jones moved to adopt committee recommendations #19 (36) & #20 (37).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #21 (38). Allow Administrative Subpoenas, similar to the authority already provided individually in the Cosmetologist, Personnel Employment Services and Discount Health Care Cards, across all programs.
Recommendation #22 (39). Allow Cease and Desist Orders, similar to the authority already provided individually in the Electrician, Air Conditioning, Cosmetology, Barber, Discount Health Care Card and Vehicle Towing and Storage Programs.
Recommendation #23 (40). Allow for the consideration of some deferred adjudication actions when reviewing applicants for licensure, similar to the authority already provided in the Air Conditioning Program.
Rep. Delwin Jones moved to adopt committee recommendations #21 (38), #22 (39), & #23 (40).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Texas Real Estate Commission
Testimony was taken. (See attached witness list).
Recommendation #24 (41).
Real estate recovery account and real estate inspection recovery fund
Amend the appropriate statutes to reflect the removal of the bankruptcy provisions.
Power of Attorney Exception for Licensure Requirement
Provide that a person cannot use the power of attorney exemption to engage in the business
of real estate brokerage.
Treatment of certain receipts
Amend TEX. OCC. CODE, §1101.153(b) to provide that one hundred percent (100%) of the professional fee is deposited to the credit of the general revenue fund to conform with statutory changes made in HB 3442, 78th Legislature, Regular Session.
Administrative Hearings
Amend the Residential Services Company Act, TEX. OCC. CODE, Chapter 1303, or the Texas Timeshare Act, TEX. PROP. CODE, Chapter 221 to conform with the recommendations of the Sunset Commission, 80th Legislature which transferred responsibility for the conduct of contested case hearings from TREC’s in house administrative law judge to the State Office of Administrative hearings.
Conform Reference to Federal Provisions
Update TEX. OCC. CODE, §1101.652(b)(22) to include familial status and handicap as bases for prohibited discrimination as provided in the Fair Housing Act.
Appraiser Subcommittee Issues
Amend TEX. OCC. CODE,§1103.206(b) to bring state law into conformity with the Appraisal
Subcommittee requirement of performing experience audits on all applicants for certification.
Remove the category of provisional license established under TEX. OCC. CODE, §1103.206.
Revise the Appraiser Qualifications Board in TEX. OCC. CODE, §1103.209(a)
and §1103.303(1), to refer to the Appraisal Subcommittee policy relating to experience requirement.
Other Texas Appraiser Licensing and Certification Board (“TALCB”)
Enforcement Enhancements
Allow the TALCB the ability of a committee of the Board to approve the immediate suspension
of a licensee or certification holder if the person is believed to present
immediate risks, provided that the matter is set for an expedited hearing before
the State Office of Administrative Hearings;
Allow the TALCB the ability to enter a default order if the holder of a license or certification
does not respond to charges and request a hearing.
Allow the TALCB the ability to revoke an expired license.
Authorize the Office of the Attorney General to represent TALCB in contested cases before the State Office of Administrative Hearings.
Rep. Isett moved to adopt committee recommendation #24 (41).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Texas Lottery Commission
Testimony was taken. (See attached witness list.)
Recommendation #25 (42). Items related to agency's Legislative Appropriations Request (LAR) for FY 2010-2011:
(a) Address the funding of certain bingo indirect and administrative expenses;
(b) Increase the lottery advertising budget from $30 million to $40 million per year;
(c) Authorize the agency's ability to increase retailer commissions;
(d) Grant the agency Capital Budget authority for the replacement of lottery drawing equipment, upgrades to agency software and hardware, acquisition of surveillance equipment for the drawings studio, upgrades to the agency telephone system, and a redesign of the Automated Charitable Bingo System.
Rep. Thompson moved to adopt committee recommendation #25 (42).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #26 (43). Repeal Section 466.015(d) of the State Lottery Act, relating to the correlation of the prize payout percentage and the advertising budget. (HB 2160 80R)
Rep. Isett moved to adopt committee recommendation #26 (43).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
Recommendation #27 (44). Clarify in the State Lottery Act that the definition of "minor" means an individual who is younger than 18 years of age. (HB 1670 80R)
Rep. Thompson moved to adopt committee recommendation #27 (44).
The motion prevailed by the following record vote:
Ayes: Representatives Flores; Isett, Carl; Goolsby; Jones, Delwin; Thompson (5).
Nays: None (0).
Present, Not Voting: None (0).
Absent: Representatives Geren; Hamilton; Miles; Quintanilla (4).
At 12:20 p.m., on the motion of the chair and without objection, the meeting was adjourned
subject to the call of the chair.
________________________
Rep. Flores, Chair
________________________
Milda Mora, Clerk