81R3326 BEF/SLB/JSC-F

By: Kolkhorst H.B. No. 2730

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the Department of Public Safety of the State of Texas and the Texas Private Security Board.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. CHANGES TO VEHICLE INSPECTION PROGRAM

SECTION 1.01. Subchapter A, Chapter 548, Transportation Code, is amended by adding Section 548.008 to read as follows:

Sec. 548.008. VEHICLE INSPECTION PROGRAM DIRECTOR. (a) The vehicle inspection program is managed by a program director. The program director may not be a commissioned officer.

(b) The office of the vehicle inspection program director must be located in Austin, Texas.

(c) The duties of the program director include:

(1) responsibility for the quality of the vehicle inspection program;

(2) coordination of the regional offices;

(3) compilation of regional and statewide performance data;

(4) the establishment of best practices and distribution of those practices to the regional offices;

(5) setting goals for the entire program, in consultation with the public safety director or the public safety director's designee, and setting goals for each regional office in consultation with the regional managers;

(6) monitoring the progress toward the goals set in Subdivision (5) and evaluating the program based on that progress; and

(7) coordination with the Texas Highway Patrol to enforce provisions related to vehicle inspection.

(d) The regional offices shall make reports as requested by the program director.

ARTICLE 2. DIVISION OF EMERGENCY MANAGEMENT

PART A. ORGANIZATION OF DIVISION

SECTION 2A.01. Section 418.004, Government Code, is amended by amending Subdivision (2) and adding Subdivision (9) to read as follows:

(2) "Division" means the Texas Division of Emergency Management [division of emergency management in the office of the governor].

(9) "Department" means the Department of Public Safety of the State of Texas.

SECTION 2A.02. Sections 418.041(a), (b), and (c), Government Code, are amended to read as follows:

(a) The Texas Division of Emergency Management [division of emergency management] is a division of the department [office of the governor].

(b) The division is managed by a chief [director] appointed by the public safety director of the department, with the approval of the governor. The chief [director] serves at the pleasure of the public safety director [governor].

(c) At least once every two months, the following shall meet to coordinate efforts, prevent overlap of activities, and ensure that the state's approach to emergency management and homeland security is unified:

(1) a representative of the department;

(2) a representative of the division;

(3) a representative of the governor's office of homeland security;

(4) the presiding officer of the Homeland Security Council; and

(5) a state agency representative from the emergency management council, selected by the chair of the emergency management council. [The director shall appoint a state coordinator.]

SECTION 2A.03. Section 418.072, Government Code, is amended to read as follows:

Sec. 418.072. DISASTER EMERGENCY FUNDING BOARD. The disaster emergency funding board is composed of:

(1) the governor;

(2) the lieutenant governor;

(3) the commissioner of insurance;

(4) the executive commissioner of the Health and [Department of] Human Services Commission; and

(5) the chief [director] of the division.

SECTION 2A.04. Section 418.074(b), Government Code, is amended to read as follows:

(b) If a gift, grant, or loan is accepted by the state, the governor, or the emergency management council or chief of the division [state coordinator] if designated by the governor, may dispense the gift, grant, or loan directly to accomplish the purpose for which it was made or may allocate and transfer to a political subdivision services, equipment, supplies, materials, or funds in the amount the governor or the governor's designee may determine.

PART B. CONFORMING AMENDMENTS REFLECTING DIVISION'S NAME CHANGE

SECTION 2B.01. Section 12.0012, Agriculture Code, is amended to read as follows:

Sec. 12.0012. NOTIFICATION. The department shall, upon submission for publication, notify the Texas Division of Emergency Management [division of emergency management in the office of the governor] of each quarantine it adopts. The department shall thereafter cooperate with the Texas Division of Emergency Management [division of emergency management] in implementing any necessary safeguards to protect the state's agricultural resources from potential economic, health, or ecological disaster that may result from the quarantined pest or disease.

SECTION 2B.02. Sections 88.303(a) and (d), Education Code, are amended to read as follows:

(a) Notwithstanding any other law, during any period in which Texas Task Force 1 is activated by the Texas Division of Emergency Management [governor's division of emergency management], or during any training session sponsored or sanctioned by Texas Task Force 1, a participating nongovernment member or local government employee member is included in the coverage provided under Chapter 501, Labor Code, in the same manner as an employee, as defined by Section 501.001, Labor Code.

(d) Notwithstanding Section 412.0123, Labor Code, as added by Chapter 1098, Acts of the 75th Legislature, Regular Session, 1997, the Texas Division of Emergency Management [governor's division of emergency management] shall reimburse the State Office of Risk Management for the actual medical and indemnity benefits paid on behalf of a covered member of Texas Task Force 1 at the beginning of the next state fiscal year occurring after the date the benefits are paid.

SECTION 2B.03. Section 418.014(e), Government Code, is amended to read as follows:

(e) An executive order or proclamation shall be disseminated promptly by means intended to bring its contents to the attention of the general public. An order or proclamation shall be filed promptly with the division [of emergency management], the secretary of state, and the county clerk or city secretary in each area to which it applies unless the circumstances attendant on the disaster prevent or impede the filing.

SECTION 2B.04. The heading to Subchapter C, Chapter 418, Government Code, is amended to read as follows:

SUBCHAPTER C. TEXAS DIVISION OF EMERGENCY MANAGEMENT

SECTION 2B.05. Section 418.073(d), Government Code, is amended to read as follows:

(d) The [governor's] division [of emergency management] shall administer the disaster contingency fund and shall develop and implement rules and procedures for providing emergency assistance from the fund.

SECTION 2B.06. Section 421.021(a), Government Code, is amended to read as follows:

(a) The Homeland Security Council is composed of the governor or the governor's designee and one representative of each of the following entities, appointed by the single statewide elected or appointed governing officer, administrative head, or chair, as appropriate, of the entity:

(1) Department of Agriculture;

(2) office of the attorney general;

(3) General Land Office;

(4) Public Utility Commission of Texas;

(5) Department of State Health Services;

(6) Department of Information Resources;

(7) Department of Public Safety of the State of Texas;

(8) Texas Division of Emergency Management [division of emergency management of the office of the governor];

(9) adjutant general's department;

(10) Texas Commission on Environmental Quality;

(11) Railroad Commission of Texas;

(12) Texas Strategic Military Planning Commission;

(13) Texas Department of Transportation;

(14) Commission on State Emergency Communications;

(15) Office of State-Federal Relations;

(16) secretary of state;

(17) Senate Committee on Transportation and Homeland Security;

(18) House Committee on Defense Affairs and State-Federal Relations;

(19) Texas Animal Health Commission;

(20) Texas Association of Regional Councils;

(21) Texas Commission on Law Enforcement Officer Standards and Education;

(22) state fire marshal's office;

(23) Texas Education Agency;

(24) Texas Commission on Fire Protection;

(25) Parks and Wildlife Department;

(26) Texas Forest Service; and

(27) Texas Water Development Board.

SECTION 2B.07. Section 661.907(b), Government Code, is amended to read as follows:

(b) The number of certified disaster service volunteers who are eligible for leave under this section may not exceed 350 state employees at any one time during a fiscal year. The Texas Division of Emergency Management [division of emergency management in the governor's office] shall coordinate the establishment and maintenance of the list of eligible employees.

SECTION 2B.08. Section 661.919(b), Government Code, is amended to read as follows:

(b) The number of amateur radio operators who are eligible for leave under this section may not exceed 350 state employees at any one time during a state fiscal year. The Texas Division of Emergency Management [division of emergency management in the governor's office] shall coordinate the establishment and maintenance of the list of eligible employees.

SECTION 2B.09. Section 501.001(5), Labor Code, is amended to read as follows:

(5) "Employee" means a person who is:

(A) in the service of the state pursuant to an election, appointment, or express oral or written contract of hire;

(B) paid from state funds but whose duties require that the person work and frequently receive supervision in a political subdivision of the state;

(C) a peace officer employed by a political subdivision, while the peace officer is exercising authority granted under:

(i) Article 2.12, Code of Criminal Procedure; or

(ii) Articles 14.03(d) and (g), Code of Criminal Procedure;

(D) a member of the state military forces, as defined by Section 431.001, Government Code, who is engaged in authorized training or duty; or

(E) a Texas Task Force 1 member, as defined by Section 88.301, Education Code, who is activated by the Texas Division of Emergency Management [governor's division of emergency management] or is injured during any training session sponsored or sanctioned by Texas Task Force 1.

SECTION 2B.10. Sections 16.055(a) and (b), Water Code, are amended to read as follows:

(a) The chief [coordinator] of the Texas Division of Emergency Management [division of emergency management of the office of the governor] is the state drought manager. The state drought manager is responsible for managing and coordinating the drought response component of the state water plan.

(b) The drought preparedness council is created and shall meet as necessary to carry out the provisions of this section. The council is composed of one representative from each of the following entities, appointed by the administrative head of that entity:

(1) the Texas Division of Emergency Management [division of emergency management of the office of the governor];

(2) the board;

(3) the commission;

(4) the Parks and Wildlife Department;

(5) the Department of Agriculture;

(6) the Texas AgriLife [Agricultural] Extension Service;

(7) the State Soil and Water Conservation Board;

(8) the Texas Department of Housing and Community Affairs;

(9) the Texas Forest Service;

(10) the Texas Department of Transportation;

(11) the Texas Department of Economic Development; and

(12) a representative of groundwater management interests who is appointed by the governor.

SECTION 2B.11. Section 1(3), Chapter 350 (S.B. 1101), Acts of the 71st Legislature, Regular Session, 1989 (Article 6419c, Vernon's Texas Civil Statutes), is amended to read as follows:

(3) "Division of emergency management" means the Texas Division of Emergency Management [division of emergency management of the office of the governor].

SECTION 2B.12. A reference in law or a rule to the "governor's division of emergency management" or the "division of emergency management in the office of the governor" means the Texas Division of Emergency Management in the Department of Public Safety of the State of Texas.

ARTICLE 3. ADMINISTRATIVE SUSPENSION OF DRIVER'S LICENSE FOR

INTOXICATION OFFENSES

SECTION 3.01. Section 524.038, Transportation Code, is amended by amending Subsection (d) and adding Subsection (e) to read as follows:

(d) An affidavit from an expert witness [a person] whose presence is timely requested [under this section] is inadmissible if the expert witness [person] fails to appear at a hearing without a showing of good cause. Otherwise, an affidavit under this section may be submitted in lieu of an appearance at the hearing by the [breath test operator, breath test technical supervisor, or] expert witness.

(e) An affidavit from a breath test operator or breath test technical supervisor is admissible unless the judge determines that justice requires the breath test operator or breath test technical supervisor to be present.

SECTION 3.02. Section 524.039, Transportation Code, is amended to read as follows:

Sec. 524.039. APPEARANCE OF TECHNICIANS AT HEARING. (a) Not [Notwithstanding Section 524.038, if not] later than the fifth day before the date of a scheduled hearing, [the department receives from] the person who requested a hearing may apply to the State Office of Administrative Hearings to issue a subpoena for the attendance [written notice, including a facsimile transmission, requesting the presence at the hearing] of the breath test operator who took the specimen of the person's breath to determine alcohol concentration or the certified breath test technical supervisor responsible for maintaining and directing the operation of the breath test instrument used to analyze the specimen of the person's breath, or both[, each requested person must appear at the hearing]. The State Office of Administrative Hearings shall issue the subpoena only on a showing of good cause.

(b) The department may reschedule a hearing once not less than 48 hours before the hearing if a [the] person subpoenaed [requested to attend] under Subsection (a) is unavailable. The department may also reschedule the hearing on showing good cause that a [the] person subpoenaed [requested] under Subsection (a) is not available at the time of the hearing.

ARTICLE 4. CHANGES TO PRIVATE SECURITY ACT

SECTION 4.01. Section 1702.002, Occupations Code, is amended by amending Subdivisions (2), (3), (5), (11), (12), (13), (17), (19), (20), and (21) and adding Subdivision (6-b) to read as follows:

(2) "Branch office" means an office that is:

(A) identified to the public as a place from which business is conducted, solicited, or advertised; and

(B) at a place other than the principal place of business as shown in board [commission] records.

(3) "Branch office license" means a permit issued by the board [commission] that entitles a person to operate at a branch office as a security services contractor or investigations company.

(5) "Commissioned security officer" means a security officer to whom a security officer commission has been issued by the board [commission].

(6-b) "Endorsement" means a permit entitling an individual holding a registration to perform a service regulated by this chapter for an appropriately licensed company.

(11) "Letter of authority" means a permit issued by the board [commission] that entitles the security department of a private business or a political subdivision to employ a commissioned security officer.

(12) "License" means a permit issued by the board [commission] that entitles a person to operate as a security services contractor or investigations company.

(13) "License holder" means a person to whom the board [commission] issues a license.

(17) "Personal protection officer endorsement [authorization]" means a permit issued by the board [commission] that entitles an individual to act as a personal protection officer.

(19) "Registrant" means an individual who has registered with the board [commission] under Section 1702.221.

(20) "Registration" means a permit issued by the board [commission] to an individual described by Section 1702.221.

(21) "Security officer commission" means an authorization issued by the board [commission] that entitles a security officer to carry a firearm.

SECTION 4.02. Section 1702.004, Occupations Code, is amended to read as follows:

Sec. 1702.004. GENERAL SCOPE OF REGULATION. (a) The board, in addition to performing duties required by other law or exercising powers granted by other law:

(1) licenses investigations companies and security services contractors;

(2) issues commissions to certain security officers;

(3) issues endorsements [authorizations] to certain security officers engaged in the personal protection of individuals;

(4) registers and endorses:

(A) certain individuals connected with a license holder; and

(B) certain individuals employed in a field connected to private investigation or private security; and

(5) regulates license holders, security officers, [and] registrants, and endorsement holders under this chapter.

(b) The board shall adopt rules necessary to comply with Chapter 53 [does not apply to this chapter or to any licensing, regulatory, or disciplinary determinations made under this chapter]. In its rules under this section, the board shall list the specific offenses for each category of regulated persons for which a conviction would constitute grounds for the board to take action under Section 53.021.

SECTION 4.03. The heading to Subchapter B, Chapter 1702, Occupations Code, is amended to read as follows:

SUBCHAPTER B. TEXAS [COMMISSION ON] PRIVATE SECURITY BOARD

SECTION 4.04. Section 1702.021, Occupations Code, is amended to read as follows:

Sec. 1702.021. BOARD [COMMISSION] MEMBERSHIP. (a) The Texas Private Security Board consists of seven members appointed by the governor with the advice and consent of the senate as follows:

(1) four public members, each of whom is a citizen of the United States;

(2) one member who is licensed under this chapter as a private investigator;

(3) one member who is licensed under this chapter as an alarm systems company; and

(4) one member who is licensed under this chapter as the owner or operator of a guard company.

(b) Appointments to the board [commission] shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointee.

(c) On presentation by a board [commission] member of the constitutional oath taken by the member, together with the certificate of appointment, the secretary of state shall issue a commission to the member as evidence of the member's authority to act as a board [commission] member.

SECTION 4.05. Section 1702.023, Occupations Code, is amended to read as follows:

Sec. 1702.023. ELIGIBILITY OF PUBLIC MEMBERS. The board's [commission's] public members must be representatives of the general public. A person may not be a public member of the board [commission] if the person or the person's spouse:

(1) is registered, commissioned, certified, or licensed by a regulatory agency in the field of private investigations or private security;

(2) is employed by or participates in the management of a business entity or other organization regulated by or receiving money from the board [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 board [commission]; or

(4) uses or receives a substantial amount of tangible goods, services, or money from the board [commission] other than compensation or reimbursement authorized by law for board [commission] membership, attendance, or expenses.

SECTION 4.06. Sections 1702.024(b) and (c), Occupations Code, are amended to read as follows:

(b) A person may not be a board [commission] member and may not be a board [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 private investigation or private security; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of private investigation or private security.

(c) A person may not be a board [commission] member or act as general counsel to the board [commission] or agency 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 agency.

SECTION 4.07. Section 1702.027, Occupations Code, is amended to read as follows:

Sec. 1702.027. GROUNDS FOR REMOVAL. (a) It is a ground for removal from the board [commission] that a member:

(1) does not have the qualifications required by Section 1702.021 at the time of taking office;

(2) does not maintain the qualifications required by Section 1702.021 during service on the board [commission];

(3) is ineligible for membership under Section 1702.023 or 1702.024;

(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 board [commission] meetings that the member is eligible to attend during a calendar year without an excuse approved by a majority vote of the board [commission].

(b) The validity of an action of the board [commission] is not affected by the fact that it is taken when a ground for removal of a board [commission] member exists.

(c) If the director has knowledge that a potential ground for removal exists, the director shall notify the presiding officer of the board [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 director shall notify the next highest ranking officer of the board [commission], who shall then notify the governor and the attorney general that a potential ground for removal exists.

SECTION 4.08. Section 1702.028, Occupations Code, is amended to read as follows:

Sec. 1702.028. PER DIEM; REIMBURSEMENT. (a) A board [commission] member is entitled to a per diem as set by legislative appropriation for each day the member engages in the business of the board [commission].

(b) A member is entitled to reimbursement for travel [transportation] expenses incurred while conducting board business, including expenses for transportation, meals, and lodging, as prescribed by the General Appropriations Act. [A member may not receive compensation for travel expenses, including expenses for meals and lodging, other than transportation expenses.]

SECTION 4.09. Section 1702.029, Occupations Code, is amended to read as follows:

Sec. 1702.029. MEETINGS. The board [commission] shall meet at regular intervals to be decided by the board [commission].

SECTION 4.10. Section 1702.030, Occupations Code, is amended to read as follows:

Sec. 1702.030. TRAINING. (a) A person who is appointed to and qualifies for office as a board [commission] member may not vote, deliberate, or be counted as a member in attendance at a board [commission] meeting 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;

(2) the programs operated by the board [commission];

(3) the role and functions of the board [commission];

(4) the rules of the board [commission], with an emphasis on the rules that relate to disciplinary and investigatory authority;

(5) the current budget for the board [commission];

(6) the results of the most recent formal audit of the board [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 board [commission] or the Texas Ethics Commission.

(c) A person appointed to the board [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.

SECTION 4.11. Section 1702.041, Occupations Code, is amended to read as follows:

Sec. 1702.041. DIRECTOR. (a) The director is the chief administrator of the board [commission]. The director shall perform duties as prescribed by the board [commission].

(b) The director is a full-time employee of the board [commission]. A board [commission] member may not serve as director.

SECTION 4.12. Section 1702.042, Occupations Code, is amended to read as follows:

Sec. 1702.042. PERSONNEL; CONFLICT OF INTEREST. An employee of the board [commission] may not:

(1) have a financial or business interest, contingent or otherwise, in a security services contractor or investigations company; or

(2) be licensed under this chapter.

SECTION 4.13. Section 1702.043, Occupations Code, is amended to read as follows:

Sec. 1702.043. DIVISION OF RESPONSIBILITIES. The board [commission] shall develop and implement policies that clearly separate the policy-making responsibilities of the board [commission] and the management responsibilities of the director and staff of the board [commission].

SECTION 4.14. Section 1702.044, Occupations Code, is amended to read as follows:

Sec. 1702.044. QUALIFICATIONS AND STANDARDS OF CONDUCT INFORMATION. The director or the director's designee shall provide to board [commission] members 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.

SECTION 4.15. Section 1702.045(b), Occupations Code, is amended to read as follows:

(b) The director or the director's designee shall develop a system of annual performance evaluations. All merit pay for board [commission] employees must be based on the system established under this subsection.

SECTION 4.16. Section 1702.046(a), Occupations Code, is amended to read as follows:

(a) The director or the director's designee shall prepare and maintain a written policy statement that implements an equal employment opportunity program to ensure that all personnel decisions are made without regard to race, creed, color, disability, sex, religion, age, or national origin. The policy statement must include:

(1) personnel policies, including policies related to recruitment, evaluation, selection, training, and promotion of personnel, that show the intent of the board [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 board's [commission's] personnel is in accordance with federal and state law and a description of reasonable methods to achieve compliance with federal and state law.

SECTION 4.17. The heading to Subchapter D, Chapter 1702, Occupations Code, is amended to read as follows:

SUBCHAPTER D. POWERS AND DUTIES OF BOARD [COMMISSION]

SECTION 4.18. Section 1702.061, Occupations Code, is amended to read as follows:

Sec. 1702.061. GENERAL POWERS AND DUTIES OF BOARD [COMMISSION]. (a) The board [Texas Commission on Private Security] shall perform the functions and duties provided by this chapter.

(b) The board [commission] shall adopt rules and general policies to guide the agency in the administration of this chapter.

(c) The rules and policies adopted by the board [commission] under Subsection (b) must be consistent with this chapter and other board [commission] rules adopted under this chapter and with any other applicable law, state rule, or federal regulation.

(d) The board [commission] has the powers and duties to:

(1) determine the qualifications of license holders, registrants, endorsement holders, and commissioned security officers;

(2) investigate alleged violations of this chapter and of board [commission] rules;

(3) adopt rules necessary to implement this chapter; and

(4) establish and enforce standards governing the safety and conduct of each person licensed, registered, or commissioned under this chapter.

(e) The board [commission] shall have a seal in the form prescribed by the board [commission].

(f) The board [commission] may commission investigators who are employed full-time by the board [commission] as peace officers for the limited purpose of assisting the board [commission] in investigating alleged violations of this chapter and of board [commission] rules.

SECTION 4.19. Subchapter D, Chapter 1702, Occupations Code, is amended by adding Section 1702.0612 to read as follows:

Sec. 1702.0612. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION. (a) The board shall develop and implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of board rules; and

(2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the board's jurisdiction.

(b) The board's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c) The board shall designate a trained person to:

(1) coordinate the implementation of the policy adopted under Subsection (a);

(2) serve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3) collect data concerning the effectiveness of those procedures, as implemented by the board.

SECTION 4.20. Section 1702.062, Occupations Code, is amended to read as follows:

Sec. 1702.062. FEES. (a) The board shall recommend to the Public Safety Commission [commission by rule shall establish] reasonable and necessary fees that produce sufficient revenue to administer this chapter. The Public Safety Commission shall establish the fee amounts by rule. The fees may not produce unnecessary fund balances. [and may not exceed the following amounts:

[Class A license$350 (original and renewal)

[Class B license$400 (original and renewal)

[Class C license$540 (original and renewal)

[Class D license$400 (original and renewal)

[Reinstate suspended license$150

[Assignment of license$150

[Change name of license$ 75

[Delinquency fee__

[Branch office certificate and renewal$300

[Registration fee for private investigator, manager, branch office manager, locksmith, electronic access control device installer, and alarm systems installer $ 30 (original and renewal)

[Registration fee for noncommissioned security officer$ 30 (original and renewal)

[Registration fee for security salesperson$ 30

[Registration fee for alarm systems monitor$ 30

[Registration fee for dog trainer$ 30

[Registration fee for owner, officer, partner, or shareholder of a license holder $ 50

[Registration fee for security consultant$300

[Registration fee for employee of license holder $ 30

[Security officer commission fee $ 50 (original and renewal)

[School instructor fee$100 (original and renewal)

[School approval fee$350 (original and renewal)

[Letter of authority fee for private business and political subdivision $400

[Letter of authority renewal fee for private business and political subdivision $225

[Letter of authority fee for commissioned officer, noncommissioned officer, or personal protection officer for political subdivision $ 10

[FBI fingerprint check$ 25

[Duplicate pocket card$ 10

[Employee information update fee$ 15

[Burglar alarm sellers renewal fee$ 30

[Personal protection officer authorization$ 50]

(b) The board [In addition to other fees established under this chapter, the commission] may charge a fee each time the board [commission] requires a person regulated under this chapter to resubmit a set of fingerprints for processing by the board [commission] during the application process for a license, registration, endorsement, or commission. The Public Safety Commission, after receiving a recommendation from the board, [commission] shall set the fee in an amount that is reasonable and necessary to cover the [commission's] administrative expenses related to processing the fingerprints.

(c) A person whose pocket card has not expired is not eligible to receive from the board [commission] another pocket card in the same classification in which the pocket card is held.

SECTION 4.21. The heading to Section 1702.063, Occupations Code, is amended to read as follows:

Sec. 1702.063. BOARD [COMMISSION] USE OF FINES.

SECTION 4.22. Section 1702.0635, Occupations Code, is amended to read as follows:

Sec. 1702.0635. RESTRICTIONS ON CERTAIN RULES. The board [commission] may not adopt rules or establish unduly restrictive experience or education requirements that limit a person's ability to be licensed as an electronic access control device company or be registered as an electronic access control device installer.

SECTION 4.23. Section 1702.064, Occupations Code, is amended to read as follows:

Sec. 1702.064. RULES RESTRICTING ADVERTISING OR COMPETITIVE BIDDING. (a) The board [commission] may not adopt rules restricting advertising or competitive bidding by a person regulated by the board [commission] except to prohibit false, misleading, or deceptive practices by the person.

(b) The board [commission] may not include in its rules to prohibit false, misleading, or deceptive practices by a person regulated by the board [commission] a rule that:

(1) restricts the person's use of any medium for advertising;

(2) restricts the person's personal appearance or use of the person's personal voice in an advertisement;

(3) relates to the size or duration of an advertisement by the person; or

(4) restricts the person's advertisement under a trade name.

SECTION 4.24. Section 1702.0645, Occupations Code, is amended to read as follows:

Sec. 1702.0645. PAYMENT OF FEES AND FINES. (a) The board [commission] may adopt rules regarding the method of payment of a fee or a fine assessed under this chapter.

(b) Rules adopted under this section may:

(1) authorize the use of electronic funds transfer or a valid credit card issued by a financial institution chartered by a state or the federal government or by a nationally recognized credit organization approved by the board [commission]; and

(2) require the payment of a discount or a reasonable service charge for a credit card payment in addition to the fee or the fine.

SECTION 4.25. Section 1702.066, Occupations Code, is amended to read as follows:

Sec. 1702.066. SERVICE OF PROCESS; SERVICE OF DOCUMENTS ON BOARD [COMMISSION]. Legal process and documents required by law to be served on or filed with the board [commission] must be served on or filed with the director at the designated office of the board [commission].

SECTION 4.26. Section 1702.067, Occupations Code, is amended to read as follows:

Sec. 1702.067. BOARD [COMMISSION] RECORDS; EVIDENCE. An official record of the board [commission] or an affidavit by the director as to the content of the record is prima facie evidence of a matter required to be kept by the board [commission].

SECTION 4.27. Section 1702.068, Occupations Code, is amended to read as follows:

Sec. 1702.068. APPEAL BOND NOT REQUIRED. The board [commission] is not required to give an appeal bond in any cause arising under this chapter.

SECTION 4.28. Section 1702.069, Occupations Code, is amended to read as follows:

Sec. 1702.069. ANNUAL REPORT. The board [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 money received and disbursed by the board [commission] in the preceding fiscal year. The form of the annual report and the reporting time are as provided in the General Appropriations Act.

SECTION 4.29. Section 1702.081, Occupations Code, is amended to read as follows:

Sec. 1702.081. PUBLIC INTEREST INFORMATION. (a) The board [commission] shall prepare information of interest to consumers or recipients of services regulated under this chapter describing the board's [commission's] regulatory functions and the procedures by which complaints are filed with and resolved by the board [commission].

(b) The board [commission] shall make the information available to the public and appropriate state agencies.

SECTION 4.30. Section 1702.082, Occupations Code, is amended to read as follows:

Sec. 1702.082. COMPLAINTS. (a) The board [commission by rule shall establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the commission for the purpose of directing complaints to the commission. The commission may provide for that notice:

[(1) on each registration form, application, or written contract for services of a person regulated under this chapter;

[(2) on a sign prominently displayed in the place of business of each person regulated under this chapter; or

[(3) in a bill for services provided by a person regulated under this chapter.

[(b) The commission] shall maintain a system to promptly and efficiently act on complaints [file on each written complaint] filed with the board [commission]. The board shall maintain information about parties to the complaint, [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 its disposition

[(6) an explanation of the reason the file was closed, if the agency closed the file without taking action other than to investigate the complaint].

(b) [(c)] The board [commission] shall make information available describing its [provide to the person filing the complaint a copy of the commission's policies and] procedures for [relating to] complaint investigation and resolution.

(c) The board shall periodically [(d) Unless it would jeopardize an undercover investigation, the commission shall provide 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.

[(e) The commission, at least quarterly until final disposition of the complaint, shall] notify the [person filing the] complaint parties [and each person who is a subject of the complaint] of the status of the complaint until final disposition [investigation unless the notice would jeopardize an undercover investigation].

SECTION 4.31. Section 1702.083, Occupations Code, is amended to read as follows:

Sec. 1702.083. PUBLIC PARTICIPATION. The board [commission] shall develop and implement policies that provide the public with a reasonable opportunity to appear before the board [commission] and to speak on any issue under the board's [commission's] jurisdiction.

SECTION 4.32. Section 1702.084, Occupations Code, is amended to read as follows:

Sec. 1702.084. PUBLIC ACCESS TO CERTAIN RECORDS OF DISCIPLINARY ACTIONS. (a) The board [commission] shall make available to the public through a toll-free telephone number, Internet website, or other easily accessible medium determined by the board [commission] the following information relating to a disciplinary action taken during the preceding three years regarding a person regulated by the board [commission]:

(1) the identity of the person;

(2) the nature of the complaint that was the basis of the disciplinary action taken against the person; and

(3) the disciplinary action taken by the board [commission].

(b) In providing the information, the board [commission] shall present the information in an impartial manner, use language that is commonly understood, and, if possible, avoid jargon specific to the security industry.

(c) The board [commission] shall update the information on a monthly basis.

(d) The board [commission] shall maintain the confidentiality of information regarding the identification of a complainant.

SECTION 4.33. Section 1702.103, Occupations Code, is amended to read as follows:

Sec. 1702.103. CLASSIFICATION AND LIMITATION OF LICENSES. (a) The license classifications are:

(1) Class A: investigations company license, covering operations of an investigations company;

(2) Class B: security services contractor license, covering operations of a security services contractor;

(3) Class C: covering the operations included within Class A and Class B; [and]

(4) Class F: level III training school license;

(5) Class O: alarm level I training school license;

(6) Class P: private business letter of authority license;

(7) Class X: government letter of authority license; and

(8) Class T: telematics license [Class D: electronic access control device license, covering operations of an electronic access control device company].

(b) A [Class A, B, C, or D] license described by this chapter does not authorize the license holder to perform a service for which the license holder has not qualified. A person may not engage in an operation outside the scope of that person's license. The board [commission] shall indicate on the license the services the license holder is authorized to perform. The license holder may not perform a service unless it is indicated on the license.

(c) A license is not assignable unless the assignment is approved in advance by the board [commission].

(d) The board [commission] shall prescribe by rule the procedure under which a license may be terminated.

(e) The board by rule may establish other license classifications for activities expressly regulated by this chapter and may establish qualifications and practice requirements consistent with this chapter for those license classifications.

SECTION 4.34. Section 1702.110, Occupations Code, is amended to read as follows:

Sec. 1702.110. APPLICATION FOR LICENSE. An application for a license under this chapter must be in the form prescribed by the board [commission] and include:

(1) the full name and business address of the applicant;

(2) the name under which the applicant intends to do business;

(3) a statement as to the general nature of the business in which the applicant intends to engage;

(4) a statement as to the classification for which the applicant requests qualification;

(5) if the applicant is an entity other than an individual, the full name and residence address of each partner, officer, and director of the applicant, and of the applicant's manager;

(6) if the applicant is an individual, two classifiable sets of fingerprints of the applicant or, if the applicant is an entity other than an individual, of each officer and of each partner or shareholder who owns at least a 25 percent interest in the applicant;

(7) a verified statement of the applicant's experience qualifications in the particular classification in which the applicant is applying;

(8) a report from the department [Texas Department of Public Safety] stating the applicant's record of any convictions for a Class B misdemeanor or equivalent offense or a greater offense;

(9) the social security number of the individual making the application; and

(10) other information, evidence, statements, or documents required by the board [commission].

SECTION 4.35. Section 1702.111, Occupations Code, is amended to read as follows:

Sec. 1702.111. ISSUANCE OF BRANCH OFFICE LICENSE. (a) A license holder, in accordance with Section 1702.129, shall notify the board [commission] in writing of the establishment of a branch office and file in writing with the board [commission] the address of the branch office.

(b) On application by a license holder, the board [commission] shall issue a branch office license.

SECTION 4.36. Section 1702.112, Occupations Code, is amended to read as follows:

Sec. 1702.112. FORM OF LICENSE. The board [commission] shall prescribe the form of a license, including a branch office license. The license must include:

(1) the name of the license holder;

(2) the name under which the license holder is to operate; and

(3) the license number and the date the license was issued.

SECTION 4.37. Sections 1702.113(a) and (c), Occupations Code, are amended to read as follows:

(a) An applicant for a license, certificate of registration, endorsement, or security officer commission or the applicant's manager must be at least 18 years of age and must not:

(1) [have been convicted in any jurisdiction of two or more felony offenses, unless full pardons have been granted for all convictions for reasons relating to wrongful convictions;

[(2) have been convicted in any jurisdiction of any of the following:

[(A) a single felony or equivalent offense for which the 20th anniversary of the date of conviction has not occurred before the date of application, unless a full pardon has been granted for reasons relating to a wrongful conviction; or

[(B) a Class A misdemeanor or equivalent offense for which the 10th anniversary of the date of conviction has not occurred before the date of application, unless a full pardon has been granted for reasons relating to a wrongful conviction;

[(3)] at the time of application be charged with the commission of a Class A misdemeanor or felony offense, under an information or indictment;

[(4) in the 10 years preceding the date of application, have been adjudicated as having engaged in delinquent conduct violating a penal law of the grade of felony;]

(2) [(5)] have been found by a court to be incompetent by reason of a mental defect or disease and not have been restored to competency;

(3) [(6)] have been dishonorably discharged from the United States armed services, discharged from the United States armed services under other conditions determined by the board to be prohibitive, or dismissed from the United States armed services if a commissioned officer in the United States armed services; or

(4) [(7)] be required to register in this or any other state as a sex offender, unless the applicant is approved by the board under Section 1702.3615.

(c) For purposes of this section, an offense under the laws of this state, another state, or the United States is considered[:

[(1) a felony if the offense:

[(A) at the time of conviction was designated by a law of this state as a felony, including a state jail felony;

[(B) contains all the elements of an offense designated by a law of this state as a felony, including a state jail felony; or

[(C) is punishable by confinement for one year or more in a penitentiary;

[(2) a Class A misdemeanor if the offense is not a felony and the offense:

[(A) at the time of conviction was designated by a law of this state as a Class A misdemeanor;

[(B) contains all the elements of an offense designated by a law of this state as a Class A misdemeanor; or

[(C) provides as a possible punishment confinement in a jail other than a state jail felony facility; or

[(3)] a Class B misdemeanor if the offense is not a felony or Class A misdemeanor and the offense:

(1) [(A)] at the time of conviction was designated by a law of this state as a Class B misdemeanor;

(2) [(B)] contains all the elements of an offense designated by a law of this state as a Class B misdemeanor; or

(3) [(C)] provides as a possible punishment confinement in a jail other than a state jail felony facility.

SECTION 4.38. Section 1702.114, Occupations Code, is amended to read as follows:

Sec. 1702.114. ADDITIONAL QUALIFICATIONS FOR INVESTIGATIONS COMPANY LICENSE. (a) An applicant for a license to engage in the business of an investigations company or the applicant's manager must have, before the date of the application, three consecutive years' experience in the investigative field as an employee, manager, or owner of an investigations company or satisfy other requirements set by the board [commission].

(b) The applicant's experience must be:

(1) reviewed by the board [commission] or the director; and

(2) determined to be adequate to qualify the applicant to engage in the business of an investigations company.

SECTION 4.39. Section 1702.115, Occupations Code, is amended to read as follows:

Sec. 1702.115. ADDITIONAL QUALIFICATIONS FOR SECURITY SERVICES CONTRACTOR LICENSE. (a) An applicant for a license to engage in the business of a security services contractor or the applicant's manager must have, before the date of the application, two consecutive years' experience in each security services field for which the person applies as an employee, manager, or owner of a security services contractor or satisfy other requirements set by the board [commission].

(b) The applicant's experience must have been obtained legally and must be:

(1) reviewed by the board [commission] or the director; and

(2) determined to be adequate to qualify the applicant to engage in the business of a security services contractor.

SECTION 4.40. Section 1702.116, Occupations Code, is amended to read as follows:

Sec. 1702.116. QUALIFICATIONS FOR GUARD DOG COMPANY LICENSE; INSPECTIONS. (a) An applicant for a license to engage in the business of a guard dog company must:

(1) meet the requirements of Sections 1702.113 and 1702.115; and

(2) present evidence satisfactory to the board [commission] that the applicant will comply with the rules adopted under this section.

(b) After consulting the [Texas] Department of State Health Services, the board [commission] shall adopt rules to ensure that the areas in which a guard dog company houses, exercises, or trains its animals are securely enclosed by a six-foot chain-link fence or made equally secure.

(c) The board [commission] shall conduct regular inspections to ensure compliance with the rules adopted under this section.

SECTION 4.41. Sections 1702.117(a), (c), and (d), Occupations Code, are amended to read as follows:

(a) The board [commission] shall require an applicant for a commission, license, registration, or endorsement under this chapter or the applicant's manager to demonstrate qualifications in the person's license classification, including knowledge of applicable state laws and board [commission] rules, by taking an examination to be determined by the board [commission].

(c) The board [commission] shall set the reexamination fee in an amount not to exceed the amount of the renewal fee for the license classification for which application was made.

(d) The board [commission] shall develop and provide to a person who applies to take the examination under Subsection (a) material containing all applicable state laws and board [commission] rules.

SECTION 4.42. Section 1702.118, Occupations Code, is amended to read as follows:

Sec. 1702.118. EXAMINATION RESULTS. (a) Not later than the 30th day after the date a person takes a licensing examination under this chapter, the board [commission] shall notify the person of the examination results.

(b) If an examination is graded or reviewed by a testing service:

(1) the board [commission] shall notify the person of the examination results not later than the 14th day after the date the board [commission] receives the results from the testing service; and

(2) if notice of the examination results will be delayed for longer than 90 days after the examination date, the board [commission] shall notify the person of the reason for the delay before the 90th day.

(c) The board [commission] may require a testing service to notify a person of the results of the person's examination.

(d) If requested in writing by a person who fails a licensing examination administered under this chapter, the board [commission] shall furnish the person with an analysis of the person's performance on the examination.

SECTION 4.43. Section 1702.1183, Occupations Code, is amended to read as follows:

Sec. 1702.1183. RECIPROCAL LICENSE FOR CERTAIN FOREIGN APPLICANTS. (a) The board [commission] may waive any prerequisite to obtaining a license for an applicant who holds a license issued by another jurisdiction with which this state has a reciprocity agreement.

(b) The board [commission] may make an agreement, subject to the approval of the governor, with another state to allow for licensing by reciprocity.

SECTION 4.44. Section 1702.1186, Occupations Code, is amended to read as follows:

Sec. 1702.1186. PROVISIONAL LICENSE. (a) The board [commission] may issue a provisional license to an applicant currently licensed in another jurisdiction who seeks an equivalent license in this state and who:

(1) has been licensed in good standing as an investigations company or security services contractor for at least two years in another jurisdiction, including a foreign country, that has licensing requirements substantially equivalent to the requirements of this chapter;

(2) has passed a national or other examination recognized by the board [commission] relating to the practice of private investigations or security services contracting; and

(3) is sponsored by a person licensed by the board [commission] under this chapter with whom the provisional license holder will practice during the time the person holds a provisional license.

(b) A provisional license is valid until the date the board [commission] approves or denies the provisional license holder's application for a license. The board [commission] shall issue a license under this chapter to the provisional license holder if:

(1) the provisional license holder is eligible to be licensed under Section 1702.1183; or

(2) the provisional license holder:

(A) passes the part of the examination under Section 1702.117(a) that relates to the applicant's knowledge and understanding of the laws and rules relating to the practice of an investigations company or security services contractor in this state;

(B) is verified by the board [commission] as meeting the academic and experience requirements for a license under this chapter; and

(C) satisfies any other licensing requirements under this chapter.

(c) The board [commission] must approve or deny a provisional license holder's application for a license not later than the 180th day after the date the provisional license is issued. The board [commission] may extend the 180-day period if the results of an examination have not been received by the board [commission] before the end of that period.

(d) The board [commission] may establish a fee for provisional licenses in an amount reasonable and necessary to cover the cost of issuing the license.

SECTION 4.45. Section 1702.120(b), Occupations Code, is amended to read as follows:

(b) An individual may not apply to the board [commission] to serve as manager of an investigations company, guard company, alarm systems company, armored car company, courier company, or guard dog company without the intent to maintain that supervisory position on a daily basis for that company.

SECTION 4.46. Section 1702.121, Occupations Code, is amended to read as follows:

Sec. 1702.121. TERMINATION OF MANAGER. A license holder shall notify the board [commission] in writing not later than the 14th day after the date a manager ceases to be manager of the license holder's business. The license remains in effect for a reasonable period after notice is given as provided by board [commission] rule pending the board's [commission's] determination of the qualification of another manager under this subchapter.

SECTION 4.47. Section 1702.122, Occupations Code, is amended to read as follows:

Sec. 1702.122. TEMPORARY CONTINUATION OF LICENSE HOLDER'S BUSINESS. Under the terms provided by board [commission] rule, a license holder's business may continue for a temporary period if the individual on the basis of whose qualifications a license under this chapter has been obtained ceases to be connected with the license holder.

SECTION 4.48. Section 1702.123, Occupations Code, is amended to read as follows:

Sec. 1702.123. INSURANCE; BOND. (a) A license holder shall maintain on file with the board [commission] at all times the surety bond and certificate of insurance required by this chapter.

(b) The board [commission] shall immediately suspend the license of a license holder who violates Subsection (a).

(c) The board [commission] may rescind the license suspension if the license holder provides proof to the board [commission] that the bond or the insurance coverage is still in effect. The license holder must provide the proof in a form satisfactory to the board [commission] not later than the 10th day after the date the license is suspended.

(d) After suspension of the license, the board [commission] may not reinstate the license until an application, in the form prescribed by the board [commission], is filed accompanied by a proper bond, insurance certificate, or both. The board [commission] may deny the application notwithstanding the applicant's compliance with this section:

(1) for a reason that would justify suspending, revoking, or denying a license; or

(2) if, during the suspension, the applicant performs a practice for which a license is required.

SECTION 4.49. Section 1702.125, Occupations Code, is amended to read as follows:

Sec. 1702.125. BOND REQUIREMENT. A bond executed and filed with the board [commission] under this chapter remains in effect until the surety terminates future liability by providing to the board [commission] at least 30 days' notice of the intent to terminate liability.

SECTION 4.50. Sections 1702.127(b) and (c), Occupations Code, are amended to read as follows:

(b) A license holder shall maintain a record containing information related to the license holder's employees as required by the board [commission].

(c) A license holder shall maintain for board [commission] inspection at the license holder's principal place of business or branch office two recent color photographs, of a type required by the board [commission], of each applicant, registrant, commissioned security officer, and employee of the license holder.

SECTION 4.51. Section 1702.129, Occupations Code, is amended to read as follows:

Sec. 1702.129. NOTICE OF CERTAIN CHANGES; BRANCH OFFICES. (a) A license holder shall notify the board [commission] not later than the 14th day after the date of:

(1) a change of address for the license holder's principal place of business;

(2) a change of a name under which the license holder does business; or

(3) a change in the license holder's officers or partners.

(b) A license holder shall notify the board [commission] in writing not later than the 14th day after the date a branch office:

(1) is established;

(2) is closed; or

(3) changes address or location.

SECTION 4.52. Section 1702.131, Occupations Code, is amended to read as follows:

Sec. 1702.131. ADVERTISING. An advertisement by a license holder soliciting or advertising business must contain the license holder's company name and address as stated in board [commission] records.

SECTION 4.53. Section 1702.161(b), Occupations Code, is amended to read as follows:

(b) An individual employed as a security officer may not knowingly carry a firearm during the course of performing duties as a security office unless the board [commission] has issued a security officer commission to the individual.

SECTION 4.54. Section 1702.162, Occupations Code, is amended to read as follows:

Sec. 1702.162. EMPLOYER'S APPLICATION FOR SECURITY OFFICER COMMISSION. The employer of a security officer who applies for a security officer commission for the officer must submit an application to the board [commission] on a form provided by the board [commission].

SECTION 4.55. Section 1702.165, Occupations Code, is amended to read as follows:

Sec. 1702.165. ISSUANCE OF SECURITY OFFICER COMMISSION; POCKET CARD. (a) The board [commission], with the concurrence of the department [Texas Department of Public Safety]:

(1) may issue a security officer commission to an individual employed as a uniformed security officer; and

(2) shall issue a security officer commission to a qualified employee of an armored car company that is a carrier conducting the armored car business under a federal or state permit or certificate.

(b) A security officer commission issued under this section must be in the form of a pocket card designed by the board [commission] that identifies the security officer.

SECTION 4.56. Section 1702.167, Occupations Code, is amended to read as follows:

Sec. 1702.167. TERMINATION OF EMPLOYMENT AS COMMISSIONED SECURITY OFFICER; TRANSFER OF COMMISSION. The holder of a security officer commission who terminates employment with one employer may transfer the individual's commission to a new employer if, not later than the 14th day after the date the individual begins the new employment, the new employer notifies the board [commission] of the transfer of employment on a form prescribed by the board [commission], accompanied by payment of the employee information update fee.

SECTION 4.57. Sections 1702.1675(a), (b), (c), (d), (e), (f), and (i), Occupations Code, are amended to read as follows:

(a) The board [commission] shall establish a basic training course for commissioned security officers. The course must include, at a minimum:

(1) general security officer training issues;

(2) classroom instruction on handgun proficiency; and

(3) range instruction on handgun proficiency.

(b) The course must be offered and taught by schools and instructors approved by the board [commission]. To receive board [commission] approval, a school or an instructor must submit an application to the board [commission] on a form provided by the board [commission].

(c) The basic training course approved by the board [commission] must consist of a minimum of 30 hours.

(d) The general security officer training portion of the course must include instruction on:

(1) board [commission] rules and applicable state laws;

(2) field note taking and report writing; and

(3) any other topics of security officer training curriculum the board [commission] considers necessary.

(e) The board [commission] shall develop a commissioned security officer training manual that contains applicable state laws and board [commission] rules to be used in the instruction and training of commissioned security officers.

(f) The board [commission] shall adopt rules necessary to administer the provisions of this section concerning the training requirements of this chapter.

(i) The board [commission] by rule shall establish minimum standards for handgun proficiency that are at least as stringent as the standards for handgun proficiency developed by the public safety director under Section 411.188, Government Code.

SECTION 4.58. Section 1702.168, Occupations Code, is amended to read as follows:

Sec. 1702.168. FIREARM REQUIREMENTS. (a) In addition to the requirements of Section 1702.163(a), the board [commission] by rule shall establish other qualifications for individuals who are employed in positions requiring the carrying of firearms. The qualifications may include:

(1) physical and mental standards;

(2) standards of good moral character; and

(3) other requirements that relate to the competency and reliability of individuals to carry firearms.

(b) The board [commission] shall prescribe appropriate forms and adopt rules by which evidence is presented that the requirements are fulfilled.

SECTION 4.59. Sections 1702.1685(b) and (d), Occupations Code, are amended to read as follows:

(b) Only a board-approved [commission-approved] instructor may administer the handgun proficiency examination.

(d) The school shall maintain the records of the required proficiency and make the records available for inspection by the board [commission].

SECTION 4.60. Section 1702.171, Occupations Code, is amended to read as follows:

Sec. 1702.171. SECURITY OFFICER COMMISSION RECORDS. The board [commission] shall adopt rules for the maintenance of records relating to an individual to whom the board [commission] has issued a security officer commission.

SECTION 4.61. Section 1702.183, Occupations Code, is amended to read as follows:

Sec. 1702.183. APPLICATION FOR LETTER OF AUTHORITY. A security department of a private business or of a political subdivision that applies for a security officer commission for an individual employed by the security department must submit an application to the board [commission] for a letter of authority on a form provided by the board [commission].

SECTION 4.62. The heading to Subchapter I, Chapter 1702, Occupations Code, is amended to read as follows:

SUBCHAPTER I. PERSONAL PROTECTION OFFICER ENDORSEMENT

[AUTHORIZATION] REQUIREMENTS

SECTION 4.63. Section 1702.201, Occupations Code, is amended to read as follows:

Sec. 1702.201. PERSONAL PROTECTION OFFICER ENDORSEMENT [AUTHORIZATION] REQUIRED. A commissioned security officer may not act as a personal protection officer unless the officer holds a personal protection officer endorsement [authorization].

SECTION 4.64. Section 1702.203, Occupations Code, is amended to read as follows:

Sec. 1702.203. APPLICATION FOR PERSONAL PROTECTION OFFICER ENDORSEMENT [AUTHORIZATION]. An applicant for a personal protection officer endorsement [authorization] must submit a written application on a form prescribed by the board [commission].

SECTION 4.65. Section 1702.204, Occupations Code, is amended to read as follows:

Sec. 1702.204. PERSONAL PROTECTION OFFICER ENDORSEMENT [AUTHORIZATION]; QUALIFICATIONS. (a) An applicant for a personal protection officer endorsement [authorization] must be at least 21 years of age and must provide:

(1) a certificate of completion of the basic security officer training course;

(2) proof that the applicant:

(A) has been issued a security officer commission;

(B) is employed at the time of application by an investigations company or guard company licensed by the board [commission]; and

(C) has completed the required training in nonlethal self-defense or defense of a third person; and

(3) proof of completion and the results of the Minnesota Multiphasic Personality Inventory psychological testing.

(b) The board [commission] by rule shall require an applicant for a personal protection officer endorsement [authorization] to complete the Minnesota Multiphasic Personality Inventory test. The board [commission] may use the results of the test to evaluate the applicant's psychological fitness.

SECTION 4.66. Section 1702.205(a), Occupations Code, is amended to read as follows:

(a) The board [commission] shall establish a 15-hour course for a personal protection officer consisting of training in nonlethal self-defense or defense of a third person.

SECTION 4.67. Section 1702.206, Occupations Code, is amended to read as follows:

Sec. 1702.206. CONCEALED FIREARMS. An individual acting as a personal protection officer may not carry a concealed firearm unless the officer:

(1) is either:

(A) engaged in the exclusive performance of the officer's duties as a personal protection officer for the employer under whom the officer's personal protection officer endorsement [authorization] is issued; or

(B) traveling to or from the officer's place of assignment; and

(2) carries the officer's security officer commission and personal protection officer endorsement [authorization] on the officer's person while performing the officer's duties or traveling as described by Subdivision (1) and presents the commission and endorsement [authorization] on request.

SECTION 4.68. Section 1702.221, Occupations Code, is amended to read as follows:

Sec. 1702.221. REGISTRATION AND ENDORSEMENT REQUIRED. (a) Before an individual may perform any activity regulated by this chapter, the individual must:

(1) register in accordance with the requirements of this chapter and related administrative rules;

(2) obtain the proper endorsement under Subsection (b); and

(3) be employed by a company licensed under this chapter.

(b) An individual must obtain the appropriate endorsement [register] in accordance with the requirements of this chapter and related administrative rules if the individual:

(1) is employed as:

(A) an alarm instructor;

(B) an alarm systems installer;

(C) an [,] alarm systems monitor;

(D) an [,] electronic access control device installer;

(E) a level 3 classroom or firearm instructor;

(F) a [,] locksmith;

(G) a [,] dog trainer;

(H) a [,] manager or branch office manager;

(I) a [,] noncommissioned security officer;

(J) a level 4 personal protection instructor;

(K) a [,] private investigator;

(L) a [,] private security consultant;

(M) a [, or] security salesperson; or

(N) an individual whose duties include performing another activity for which an endorsement is required under Subsection (e); or

(2) is an owner, officer, partner, or shareholder of a license holder.

(c) [(b)] Registration and endorsement under this chapter does not preclude an individual from performing additional duties or services authorized by the individual's employer that are not regulated by this chapter. An individual who performs more than one of the services that require an endorsement under this section must obtain an endorsement for each service.

(d) In addition to the services listed in Subsection (a), a person holding a security officer commission must also obtain an endorsement for personal protection if the individual performs the services described by Section 1702.202.

(e) The board by rule may require a person to hold an endorsement for performing other activity expressly regulated by this chapter.

SECTION 4.69. Section 1702.2226(b), Occupations Code, is amended to read as follows:

(b) A person registered as an electronic access control device installer may not install alarm systems unless the person holds an endorsement [is registered] under this chapter as an alarm systems installer.

SECTION 4.70. The heading to Subchapter J, Chapter 1702, Occupations Code, is amended to read as follows:

SUBCHAPTER J. REGISTRATION AND ENDORSEMENT REQUIREMENTS;

[REGISTRANT] DUTIES OF REGISTRANT AND ENDORSEMENT HOLDER

SECTION 4.71. Section 1702.228, Occupations Code, is amended to read as follows:

Sec. 1702.228. EMPLOYEE OF LICENSE HOLDER; REGISTRATION PERMITTED. An employee of a license holder who is employed in a capacity that is not subject to mandatory registration under this subchapter may register with the board [commission].

SECTION 4.72. Section 1702.230, Occupations Code, is amended to read as follows:

Sec. 1702.230. APPLICATION FOR REGISTRATION OR ENDORSEMENT. (a) An application for registration or endorsement must be verified and include:

(1) the applicant's full name, residence address, residence telephone number, date and place of birth, and social security number;

(2) a statement that:

(A) lists each name used by the applicant, other than the name by which the applicant is known at the time of application, and an explanation stating each place where each name was used, the date of each use, and a full explanation of the reasons the name was used; or

(B) states that the applicant has never used a name other than the name by which the applicant is known at the time of application;

(3) the name and address of the applicant's employer and, if applicable, the applicant's consulting firm;

(4) the date the employment commenced;

(5) a letter from the license holder requesting that the applicant be registered or endorsed;

(6) the title of the position occupied by the applicant and a description of the applicant's duties; and

(7) any other information, evidence, statement, or document required by the board [commission].

(b) The employer of the applicant shall make a reasonable attempt to verify the information required under Subsection (a)(1).

SECTION 4.73. Section 1702.2305, Occupations Code, is amended to read as follows:

Sec. 1702.2305. PROVISIONAL REGISTRATION. (a) The board [commission] may issue a provisional registration to an applicant currently registered in another jurisdiction who seeks an equivalent registration in this state and who:

(1) has been registered in good standing in the field in which the registration is sought for at least two years in another jurisdiction, including a foreign country, that has registration requirements substantially equivalent to the requirements of this chapter;

(2) has passed a national or other examination recognized by the board [commission] relating to practice in the field in which the registration is sought; and

(3) is employed by a person licensed by the board [commission] under this chapter with whom the provisional registration holder will practice during the time the person holds a provisional registration.

(b) A provisional registration is valid until the date the board [commission] approves or denies the provisional registration holder's application for a registration. The board [commission] shall issue a registration under this chapter to the provisional registration holder if the provisional registration holder is eligible to be registered under this chapter.

(c) The board [commission] must approve or deny a provisional registration holder's application for a registration not later than the 180th day after the date the provisional registration is issued. The board [commission] may extend the 180-day period if the results of an examination have not been received by the board [commission] before the end of that period.

(d) The board [commission] may establish a fee for provisional registration in an amount reasonable and necessary to cover the cost of issuing the registration.

SECTION 4.74. Section 1702.232, Occupations Code, is amended to read as follows:

Sec. 1702.232. POCKET CARDS. (a) The board [commission] shall issue a pocket card for each registrant under this chapter. A pocket card for an owner, officer, partner, or shareholder of a license holder shall be issued to the license holder.

(b) The board [commission] shall determine the size, design, and content of the pocket card.

(c) The pocket card must:

(1) state the name of the registrant;

(2) contain a color photograph and the signature of the registrant; [and]

(3) state the date the card was issued and the card's expiration date; and

(4) state each endorsement held by the registrant and the date the endorsement expires.

SECTION 4.75. Section 1702.234, Occupations Code, is amended to read as follows:

Sec. 1702.234. REGISTRATION AND ENDORSEMENT TRANSFER. A registrant may transfer the registrant's registration and endorsements from one employer to another employer if, not later than the 14th day after the date the registrant begins the new employment, the new employer notifies the board [commission] of the transfer of employment on a form prescribed by the board [commission] accompanied by payment of the employee information update fee.

SECTION 4.76. Section 1702.235, Occupations Code, is amended to read as follows:

Sec. 1702.235. PREEMPLOYMENT CHECK FOR NONCOMMISSIONED SECURITY OFFICERS. A person may not hire a noncommissioned security officer unless the person conducts a preemployment check as required by board [commission] rule.

SECTION 4.77. Section 1702.236, Occupations Code, is amended to read as follows:

Sec. 1702.236. EXAMINATION AND TRAINING REQUIREMENTS FOR ELECTRONIC ACCESS CONTROL DEVICE INSTALLERS. (a) The board [commission] shall require an individual who applies for an endorsement [registration] as an electronic access control device installer to pass an examination given by the board [commission] or a person approved by the board [commission]. The examination must cover material related to access control.

(b) [(c)] On and after September 1, 2005, the board [commission] by rule may allow an electronic access control device installer to obtain or renew an endorsement [a certificate of registration] by fulfilling the requirements of a board-approved [commission-approved], industry-based educational training program.

SECTION 4.78. Sections 1702.239(a), (b), and (d), Occupations Code, are amended to read as follows:

(a) The board [commission] may require that an individual employed as an alarm systems installer or security salesperson hold a certification by a board-approved [commission-approved] training program to renew an endorsement [an initial registration]. The board [commission] may approve only nationally recognized training programs that consist of at least 16 hours of classroom study in the areas of work allowed by the endorsement [registration]. To be approved, a training program must offer at least two certification programs each year, sufficient to complete the requirements of this subsection, within 100 miles of each county in the state that has a population of more than 500,000.

(b) The board [commission] may require an individual who has completed a training program under Subsection (a) to pass an examination given by the board [commission] or by a person approved by the board [commission]. The board [commission] may approve examinations in conjunction with training programs approved under Subsection (a). The individual's performance on the examination must demonstrate the individual's qualifications to perform the duties allowed by the individual's endorsement [registration].

(d) If the board [commission] requires certification or examination under this section, the board [commission] shall implement rules to require that to renew an endorsement [a registration], an individual who is employed as an alarm systems installer or a security salesperson and who has already once renewed the endorsement [registration] must obtain continuing education credits related to the line of work for which the individual is licensed. If the board [commission] requires the continuing education, the director must approve classes offered by nationally recognized organizations, and participants in the classes must qualify according to board [commission] rules.

SECTION 4.79. Section 1702.240(b), Occupations Code, is amended to read as follows:

(b) An employee of a license holder who is employed exclusively as an undercover agent is not required to register with the board [commission].

SECTION 4.80. Subchapter J, Chapter 1702, Occupations Code, is amended by adding Section 1702.241 to read as follows:

Sec. 1702.241. JURISPRUDENCE EXAMINATION. (a) The board may develop and administer at least twice each calendar year a jurisprudence examination to determine the knowledge that an applicant for an endorsement has of this chapter, board rules, and any other applicable laws of this state affecting the applicant's activities regulated under this chapter.

(b) Before the board may administer a jurisprudence examination under this section, the board may adopt rules to implement this section, including rules related to the development and administration of the examination, examination fees, guidelines for reexamination, grading the examination, and providing notice of examination results. The board may design different examinations for different types of endorsements.

SECTION 4.81. Section 1702.262, Occupations Code, is amended to read as follows:

Sec. 1702.262. SELLERS OF CERTAIN DEVICES. A person may sell a detection device or other device for preventing or detecting burglary if:

(1) the person does not install, repair, or maintain detection devices;

(2) the person holds a seller's certificate;

(3) the person, or the manufacturer or distributor of the device that the person sells, files with the board [commission] a certificate evidencing insurance for liability for bodily injury or property damage arising from faulty or defective products in an amount of not less than $1 million combined single limit, provided that the policy of insurance need not relate exclusively to burglary devices;

(4) the person, or the manufacturer or distributor of the device that the person sells, files with the board [commission] a surety bond executed by a surety company authorized to do business in this state in the sum of $10,000 in favor of the state; and

(5) the person is not employed by a security services contractor.

SECTION 4.82. Section 1702.263, Occupations Code, is amended to read as follows:

Sec. 1702.263. APPLICATION FOR SELLER'S CERTIFICATE. (a) To obtain a seller's certificate, a person must:

(1) submit to the board [commission] an application that includes the person's full name, residence telephone number, date and place of birth, and social security number and two sets of classifiable fingerprints; and

(2) pay to the board [commission] a seller's certificate fee established by the board [commission] in an amount not to exceed $25.

(b) The board [commission] shall approve an application for a seller's certificate and issue the certificate to the applicant unless:

(1) the background check of the applicant discloses a felony conviction for which a full pardon has not been granted; or

(2) any information provided in the application is false.

SECTION 4.83. Section 1702.267, Occupations Code, is amended to read as follows:

Sec. 1702.267. SUSPENSION OR REVOCATION OF SELLER'S CERTIFICATE. On conviction under Section 1702.388 for a violation of this subchapter, the board [commission] may revoke or suspend a seller's certificate after a hearing conducted under Subchapter O.

SECTION 4.84. Sections 1702.282(a), (c), and (e), Occupations Code, are amended to read as follows:

(a) The board shall conduct a criminal history check, including a check of any criminal history record information maintained by the Federal Bureau of Investigation, in the manner provided by Subchapter F, Chapter 411, Government Code, on each applicant for a license, registration, security officer commission, letter of approval, permit, endorsement, or certification. An applicant is not eligible for a license, registration, commission, letter of approval, permit, endorsement, or certification if the check reveals that the applicant has committed an act that constitutes grounds for the denial of the license, registration, commission, letter of approval, permit, endorsement, or certification. Except as provided by Subsection (d), each applicant shall include in the application two complete sets of fingerprints on forms prescribed by the board accompanied by the fee set by the board.

(c) A license, registration, security officer commission, letter of approval, permit, endorsement, or certification issued by the board is conditional on the board's receipt of criminal history record information.

(e) On receipt of notice that a check of the applicant's criminal record has uncovered an unresolved and potentially disqualifying arrest that occurred before the 10th anniversary of the date the application is filed, the applicant must provide a letter of reference from the county sheriff, prosecuting attorney, or judge of the county in which the applicant was arrested stating that a record of a disposition related to the arrest does not exist, and to the best of the county sheriff's, prosecuting attorney's, or judge's knowledge the applicant is free of any disqualifying convictions. If the applicant fails to provide either the letter of reference or documentary proof of the final disposition of the arrest, the application is considered incomplete and the applicant may not be issued a license, commission, endorsement, or certificate of registration under this chapter.

SECTION 4.85. Section 1702.283, Occupations Code, is amended to read as follows:

Sec. 1702.283. CRUELTY TO ANIMALS. A person who has been convicted of cruelty to animals under Section 42.09 or 42.092, Penal Code:

(1) is ineligible for a license as a guard dog company or for endorsement [registration] as a dog trainer; and

(2) may not be employed to work with dogs as a security officer by a security services contractor or security department of a private business that uses dogs to protect individuals or property or to conduct investigations.

SECTION 4.86. Section 1702.285, Occupations Code, is amended to read as follows:

Sec. 1702.285. FALSE REPRESENTATION. A person may not represent falsely that the person:

(1) is employed by a license holder; or

(2) is licensed, registered, endorsed, or commissioned under this chapter.

SECTION 4.87. Sections 1702.301(c), (d), (e), (f), (g), and (h), Occupations Code, are amended to read as follows:

(c) A personal protection officer endorsement [authorization] expires on the expiration date of the security officer commission under which the individual's endorsement [authorization] is issued.

(d) Endorsement [Registration] as a private investigator, manager, branch office manager, alarm systems installer, security consultant, security salesperson, alarm systems monitor, or dog trainer expires on the second anniversary of the date of endorsement [registration].

(e) Endorsement [Registration] as an owner, officer, partner, or shareholder of a license holder expires on the second anniversary of the date of endorsement [registration].

(f) Endorsement [Registration] as a noncommissioned security officer expires on the second anniversary of the date of endorsement [registration].

(g) A letter of authority, or a school approval or school instructor approval letter issued by the board [commission], expires on the first anniversary of the date of issuance.

(h) A license, [or] registration, or endorsement issued under this chapter, other than one specified in this section, expires on the date specified by this chapter or by board [commission] rule.

SECTION 4.88. Section 1702.302, Occupations Code, is amended to read as follows:

Sec. 1702.302. LICENSE RENEWAL. (a) A person who is otherwise eligible to renew a license may renew an unexpired license by paying the required renewal fee to the board [commission] before the expiration date of the license. A person whose license has expired may not engage in activities that require a license until the license has been renewed.

(b) A person whose license has been expired for 90 days or less may renew the license by paying to the board [commission] a renewal fee that is equal to 1-1/2 times the normally required renewal fee.

(c) A person whose license has been expired for longer than 90 days but less than one year may renew the license by paying to the board [commission] a renewal fee that is equal to two times the normally required renewal fee.

(d) A person whose license has been expired for one year or more may not renew the license. The person may obtain a new license by complying with the requirements and procedures, including the examination requirements, for obtaining an original license.

(e) Not later than the 30th day before the date a person's license is scheduled to expire, the board [commission] shall send written notice of the impending expiration to the person at the person's last known address according to the board's [commission's] records.

SECTION 4.89. Section 1702.303, Occupations Code, is amended to read as follows:

Sec. 1702.303. RENEWAL OF EXPIRED LICENSE BY OUT-OF-STATE PRACTITIONER. A person who was licensed in this state, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date the person applies for renewal may obtain a new license without reexamination. The person must pay to the board [commission] a fee that is equal to two times the normally required renewal fee for the license.

SECTION 4.90. Section 1702.304, Occupations Code, is amended to read as follows:

Sec. 1702.304. STAGGERED RENEWAL; PRORATION OF LICENSE FEE. The board [commission] by rule may adopt a system under which licenses expire on various dates during the year. For the year in which the expiration date of a license is changed, the board [commission] shall prorate license fees on a monthly basis so that each license holder pays only that portion of the license fee that is allocable to the number of months during which the license is valid. On renewal of the license on the new expiration date, the total license renewal fee is payable.

SECTION 4.91. Section 1702.307, Occupations Code, is amended to read as follows:

Sec. 1702.307. REGISTRATION RENEWAL. (a) An individual who is otherwise eligible to renew a registration may renew an unexpired registration by paying the required renewal fee to the board [commission] before the expiration date of the registration. An individual whose registration has expired may not engage in activities that require a registration until the registration has been renewed.

(b) An individual whose registration has been expired for 90 days or less may renew the registration by paying to the board [commission] a renewal fee that is equal to 1-1/2 times the normally required renewal fee.

(c) An individual whose registration has been expired for more than 90 days but less than one year may renew the registration by paying to the board [commission] a renewal fee that is equal to two times the normally required renewal fee.

(d) An individual whose registration has been expired for one year or more may not renew the registration. The individual may obtain a new registration by complying with the requirements and procedures, including any examination required by the board [commission], for obtaining an original registration.

(e) An individual who was registered in this state, moved to another state, and is currently registered and has been in practice in the other state for the two years preceding the date of application may obtain a new registration without reexamination. The individual must pay to the board [commission] a fee that is equal to two times the normally required renewal fee for the registration.

(f) Not later than the 30th day before the expiration date of an individual's registration, the board [commission] shall send written notice of the impending expiration to the individual at the individual's last known address according to board [commission] records.

SECTION 4.92. Sections 1702.308(b) and (c), Occupations Code, are amended to read as follows:

(b) The board [commission] shall recognize, prepare, or administer continuing education programs for license holders, commissioned security officers, and endorsement holders [registrants]. The board [commission] shall set the minimum number of hours that must be completed and the types of programs that may be offered.

(c) A license holder, commissioned security officer, or endorsement holder [registrant] must participate in the programs to the extent required by the board [commission] to keep the person's license, commission, or endorsement [registration]. A license holder, commissioned security officer, or endorsement holder [registrant] shall submit evidence of compliance with the board's [commission's] continuing education requirements in a manner prescribed by the board [commission].

SECTION 4.93. Section 1702.309(a), Occupations Code, is amended to read as follows:

(a) The board [commission] by rule shall develop a continuing education course required for renewal of a security officer commission. Only a board-approved [commission-approved] instructor may administer the continuing education course. The course must include at least six hours of instruction determined by the director of the board [commission].

SECTION 4.94. Sections 1702.321(b), (c), and (e), Occupations Code, are amended to read as follows:

(b) The provisions of this chapter relating to security officer commissions apply to a person employed by a political subdivision whose duties include serving as a security guard, security watchman, or security patrolman on property owned or operated by the political subdivision if the governing body of the political subdivision files a written request with the board [commission] for the board [commission] to issue a commission to the political subdivision's employees with those duties.

(c) The board [commission] may not charge a fee for issuing a commission to an officer under Subsection (b). The board [commission] shall issue to the officer a pocket card designating the political subdivision that employs the officer.

(e) The board [commission] may approve a security officer training program conducted by the political subdivision in accordance with Sections 1702.1675 and 1702.168.

SECTION 4.95. Sections 1702.361(a) and (b), Occupations Code, are amended to read as follows:

(a) Subject to the board's final order under the hearing provisions of this subchapter, the department, for conduct described by Subsection (b), may:

(1) deny an application or revoke, suspend, or refuse to renew a license, registration, endorsement, or security officer commission;

(2) reprimand a license holder, registrant, or commissioned security officer; or

(3) place on probation a person whose license, registration, endorsement, or security officer commission has been suspended.

(b) The department shall take disciplinary action described by Subsection (a) on proof:

(1) that the applicant, license holder, registrant, endorsement holder, or commissioned security officer has:

(A) violated this chapter or a rule adopted under this chapter;

(B) become ineligible for licensure, [or] registration, or endorsement under Section 1702.113, or a commission under Section 1702.163, if applicable, other than an action for which the department has taken summary action under Section 1702.364;

(C) engaged in fraud, deceit, or misrepresentation;

(D) made a material misstatement in an application for or renewal of a license, registration, endorsement, or commission; [or]

(E) failed to pay in full an administrative penalty assessed under Subchapter Q, for which the board has issued a final order; or

(F) performed any service for which an endorsement is required under this chapter and either:

(i) was not employed with a company licensed under this chapter at the time the service was performed; or

(ii) performed the service for a company licensed under this chapter that was not listed on the individual's registration without informing the board of the individual's employment with the company within a reasonable period; or

(2) that the license holder of a registrant or commissioned security officer has submitted to the department sufficient evidence that the registrant or commissioned security officer:

(A) engaged in fraud or deceit while employed by the license holder; or

(B) committed theft while performing work as a registrant or commissioned security officer.

SECTION 4.96. Section 1702.362, Occupations Code, is amended to read as follows:

Sec. 1702.362. FAILURE TO FILE REQUIRED NOTICE. The board [commission] may suspend or revoke a license if the license holder fails to notify the board [commission] as required by Section 1702.121 that a manager has ceased to be the manager of the license holder.

SECTION 4.97. Section 1702.363, Occupations Code, is amended to read as follows:

Sec. 1702.363. APPLICATION OF ADMINISTRATIVE PROCEDURE ACT. Except as provided by Sections 1702.3615(b) and 1702.364, a person regulated under this chapter against whom the board [commission] has taken action is entitled to a hearing before the State Office of Administrative Hearings. A proceeding under this section is a contested case that is governed by Chapter 2001, Government Code.

SECTION 4.98. Sections 1702.364(a), (d), (f), and (h), Occupations Code, are amended to read as follows:

(a) On receiving written notice from a law enforcement agency that a person has been charged with or convicted of an offense that would make the person ineligible for a license, certificate of registration, endorsement, or security officer commission under Section 1702.113 or 1702.163, the department shall:

(1) summarily deny the person's application for a license, registration, endorsement, or security officer commission;

(2) in the event of pending charges, summarily suspend the person's license, certificate of registration, endorsement, or security officer commission; or

(3) in the event of a conviction, summarily revoke the person's license, certificate of registration, endorsement, or security officer commission.

(d) At a preliminary hearing, the person must show cause why:

(1) the application should not have been denied;

(2) the registration, license, endorsement, or security officer commission should not have been suspended; or

(3) the registration, license, endorsement, or commission should not have been revoked.

(f) The dismissal of a complaint, information, or indictment or an acquittal releases the person from automatic grounds for a summary denial of an application or summary suspension of a registration, endorsement, or security officer commission under this section. A conviction for the offense giving rise to a summary suspension is automatic grounds for immediate, summary revocation.

(h) The administrative law judge shall make findings of fact and conclusions of law regarding the person's eligibility for a license, registration, or endorsement under this section and promptly issue to the board a proposal for a decision.

SECTION 4.99. Section 1702.365, Occupations Code, is amended to read as follows:

Sec. 1702.365. ABDUCTION OF CHILD. The board [commission] shall revoke a person's license, registration, endorsement, or security officer commission or deny a person's application for, or renewal of, a license, registration, endorsement, or security officer commission on proof that the person or an agent of the person has, after the date of application for a license, registration, endorsement, or security officer commission, abducted or attempted to abduct by force or the threat of force or by misrepresentation, stealth, or unlawful entry a child who at the time of the abduction or attempt is under the care and control of a person who:

(1) has custody or physical possession of the child under a court order; or

(2) is exercising the care and control with the consent of a person who has custody or physical possession of the child under a court order.

SECTION 4.100. Sections 1702.367(a), (c), (d), and (e), Occupations Code, are amended to read as follows:

(a) For an investigation conducted under this chapter, the board [commission] may issue a subpoena to compel the attendance of a witness or the production of a pertinent record or document. The hearings officer may administer oaths and require testimony or evidence to be given under oath.

(c) A person required to testify or to produce a record or document on any matter properly under inquiry by the board [commission] who refuses to testify or to produce the record or document on the ground that the testimony or the production of the record or document would incriminate or tend to incriminate the person is nonetheless required to testify or to produce the record or document. A person who is required to testify or to produce a record or document under this subsection is not subject to indictment or prosecution for a transaction, matter, or thing concerning which the person truthfully testifies or produces evidence.

(d) If a witness refuses to obey a subpoena or to give evidence relevant to proper inquiry by the board [commission], the board [commission] may petition a district court of the county in which the hearing is held to compel the witness to obey the subpoena or to give the evidence. The court shall immediately issue process to the witness and shall hold a hearing on the petition as soon as possible.

(e) An investigator employed by the board [commission] may take statements under oath in an investigation of a matter covered by this chapter.

SECTION 4.101. Section 1702.368, Occupations Code, is amended to read as follows:

Sec. 1702.368. NOTIFICATION OF CONVICTION FOR CERTAIN OFFENSES. The department [Texas Department of Public Safety] shall notify the board [commission] and the police department of the municipality and the sheriff's department of the county in which a person licensed, registered, or commissioned under this chapter resides of the conviction of the person for a Class B misdemeanor or equivalent offense or a greater offense.

SECTION 4.102. Subchapter O, Chapter 1702, Occupations Code, is amended by adding Section 1702.372 to read as follows:

Sec. 1702.372. RECUSAL OF BOARD MEMBER. (a) A board member who participated in the investigation of a complaint or in informal settlement negotiations regarding the complaint:

(1) may not vote on the matter at a board meeting related to the complaint; and

(2) shall state at the meeting the reason for which the member is prohibited from voting on the matter.

(b) A statement under Subsection (a)(2) shall be entered into the minutes of the meeting.

SECTION 4.103. Section 1702.381(b), Occupations Code, is amended to read as follows:

(b) A person who contracts with or employs a person who is required to hold a license, [certificate of] registration, endorsement, or security officer commission under this chapter knowing that the person does not hold the required license, registration, endorsement [certificate], or commission or who otherwise, at the time of contract or employment, is in violation of this chapter may be assessed a civil penalty to be paid to the state in an amount not to exceed $10,000 for each violation.

SECTION 4.104. Section 1702.386(a), Occupations Code, is amended to read as follows:

(a) A person commits an offense if the person contracts with or employs a person who is required to hold a license, registration, endorsement [certificate], or commission under this chapter knowing that the person does not hold the required license, registration, endorsement [certificate], or commission or who otherwise, at the time of contract or employment, is in violation of this chapter.

SECTION 4.105. Section 1702.3863(a), Occupations Code, is amended to read as follows:

(a) A person commits an offense if the person contracts with or is employed by a bail bond surety as defined by Chapter 1704 to secure the appearance of a person who has violated Section 38.10, Penal Code, unless the person is:

(1) a peace officer;

(2) an individual endorsed or licensed as a private investigator or the manager of a licensed investigations company; or

(3) a commissioned security officer employed by a licensed guard company.

SECTION 4.106. Section 1702.387(a), Occupations Code, is amended to read as follows:

(a) A person commits an offense if the person fails to surrender or immediately return to the board [commission] the person's registration, commission, pocket card, or other identification issued to the person by the board [commission] on notification of a summary suspension or summary denial under Section 1702.364.

SECTION 4.107. Section 1702.388(b), Occupations Code, is amended to read as follows:

(b) An offense under this section is a Class A misdemeanor, except that the offense is a felony of the third degree if the person has previously been convicted under this chapter of failing to hold a license, registration, endorsement, certificate, or commission that the person is required to hold under this chapter.

SECTION 4.108. Section 1702.402, Occupations Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a) Each day a violation continues or occurs is a separate violation for purposes of imposing a penalty. The amount of each separate violation may not exceed $5,000 [$500].

(c) The board by rule shall develop a standardized penalty schedule based on the criteria listed in Subsection (b).

SECTION 4.109. Section 1702.406(b), Occupations Code, is amended to read as follows:

(b) The notice of the board's order given to the person must include a statement of the right of the person to judicial review of the order. Judicial review is under the substantial evidence rule as provided by Subchapter G, Chapter 2001, Government Code.

SECTION 4.110. The following provisions of the Occupations Code are repealed:

(1) Section 1702.002(4);

(2) Section 1702.003;

(3) Section 1702.065;

(4) Section 1702.113(e); and

(5) Section 1702.364(j).

SECTION 4.111. (a) Not later than January 1, 2010, the Texas Private Security Board and the Department of Public Safety shall adopt the rules required by or under Sections 1702.062 and 1702.082, Occupations Code, as amended by this article. The fee schedule in effect under Section 1702.062, Occupations Code, before the effective date of this Act is continued in effect until new fees are adopted under Section 1702.062, Occupations Code, as amended by this article.

(b) The requirement to pass a jurisprudence examination under Section 1702.241, Occupations Code, as added by this article, applies only to an individual who applies for a registration or endorsement under Chapter 1702, Occupations Code, on or after the date specified by the Texas Private Security Board in the event the board begins requiring applicants to pass a jurisprudence examination, but not earlier than September 1, 2010.

(c) The changes in law made by this article related to the filing, investigation, or resolution of a complaint under Chapter 1702, Occupations Code, as amended by this article, apply only to a complaint filed with the Texas Private Security Board on or after the effective date of this Act. A complaint filed before the effective date of this Act is governed by the law as it existed immediately before that date, and the former law is continued in effect for that purpose.

(d) The changes in law made by this article governing the authority of the Texas Private Security Board and the Department of Public Safety to issue, renew, or revoke a license, registration, endorsement, or commission under Chapter 1702, Occupations Code, apply only to an application for an original or renewal license, registration, endorsement, or commission filed with the Texas Private Security Board under Chapter 1702, Occupations Code, as amended by this article, on or after the effective date of this Act. An application filed before the effective date of this Act is governed by the law in effect at the time the application was filed, and the former law is continued in effect for that purpose.

(e) The change in law made by this article with respect to conduct that is grounds for imposition of a disciplinary sanction applies only to conduct that occurs on or after the effective date of this Act. Conduct that occurs before the effective date of this Act is governed by the law in effect on the date the conduct occurred, and the former law is continued in effect for that purpose.

(f) Section 1702.372, Occupations Code, as added by this article, applies only to a hearing conducted on or after the effective date of this Act, regardless of the date on which the complaint was filed. A complaint on which a hearing is conducted before the effective date of this Act is governed by the law in effect on the date the hearing was conducted, and the former law is continued in effect for that purpose.

(g) The holder of a Class D license under Chapter 1702, Occupations Code, as amended by this article, shall be considered to hold a Class B license on the effective date of this Act. On the expiration of the Class D license, the license holder may renew the license as a Class B license.

ARTICLE 5. GENERAL PROVISIONS

SECTION 5.01. Section 411.002, Government Code, is amended by amending Subsection (c) and adding Subsections (d) and (e) to read as follows:

(c) The Department of Public Safety of the State of Texas is subject to Chapter 325 (Texas Sunset Act). Unless continued in existence as provided by that chapter, the department is abolished and Subsections (a) and (b) expire September 1, 2021 [2009].

(d) Not later than December 1, 2010, the Sunset Advisory Commission shall review and prepare a written report for submission to the legislature on the department's implementation of:

(1) the recommendations in the 2008 audit of the department's information technology system; and

(2) a civilian business model for the operation of the driver's license division that focuses on improving customer service by:

(A) using best practices in call center technology and monitoring customer service calls;

(B) expanding operating hours at driver's license offices; and

(C) decreasing the time the department takes to send a replacement driver's license.

(e) The Sunset Advisory Commission shall submit the report required by Subsection (d) not later than February 15, 2011. This subsection and Subsection (d) expire August 31, 2011.

SECTION 5.02. Section 411.0035, Government Code, is amended to read as follows:

Sec. 411.0035. MEMBER AND GENERAL COUNSEL RESTRICTION. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined statewide 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 [serve as] a member of the commission and may not be a department 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.), if:

(1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of law enforcement or private security; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of law enforcement or private security.

(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 because of the person's activities for compensation on behalf of a profession related to the operation of the commission.

SECTION 5.03. Subchapter A, Chapter 411, Government Code, is amended by adding Section 411.0042 to read as follows:

Sec. 411.0042. DIVISION OF RESPONSIBILITIES. The commission shall develop and implement policies that clearly separate the policymaking responsibilities of the commission and the management responsibilities of the director and the staff of the department.

SECTION 5.04. Subchapter A, Chapter 411, Government Code, is amended by adding Section 411.0043 to read as follows:

Sec. 411.0043. TECHNOLOGY POLICY. The commission shall implement a policy requiring the department to use appropriate technological solutions to improve the department's ability to perform its functions. The policy must ensure that the public is able to interact with the department on the Internet.

SECTION 5.05. Subchapter A, Chapter 411, Government Code, is amended by adding Section 411.0044 to read as follows:

Sec. 411.0044. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION. (a) The commission shall develop and implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter 2008 for the adoption of department rules; and

(2) appropriate alternative dispute resolution procedures under Chapter 2009 to assist in the resolution of internal and external disputes under the department's jurisdiction.

(b) The department's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c) The commission shall designate a trained person to:

(1) coordinate the implementation of the policy adopted under Subsection (a);

(2) serve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3) collect data concerning the effectiveness of those procedures, as implemented by the department.

SECTION 5.06. Sections 411.0195(a), (b), and (c), Government Code, are amended to read as follows:

(a) The department shall maintain a system to promptly and efficiently act on [prepare information of public interest describing the functions of the department and the department's procedures by which] complaints [are] filed with [and resolved by] the department. The department shall maintain [make the] information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and its disposition [available to the public and appropriate state agencies].

(b) The department shall make information available describing its procedures for complaint investigation and resolution [director by rule shall establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the department for the purpose of directing complaints to the department].

(c) The department shall periodically notify the complaint parties of the status of the complaint until final disposition [maintain a file on each written complaint filed with the department. The file must include:

[(1) the name of the person who filed the complaint;

[(2) the date the complaint is received by the department;

[(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 agency closed the file without taking action other than to investigate the complaint].

SECTION 5.07. Section 411.188, Government Code, is amended by adding Subsection (j) to read as follows:

(j) The department may offer online, or allow a qualified handgun instructor to offer online, the continuing education instruction course and written section of the proficiency examination required to renew a license.

SECTION 5.08. Sections 411.244(a), (d), and (f), Government Code, are amended to read as follows:

(a) The commission [director] shall establish the office of internal affairs, which is responsible for:

(1) acting to prevent and detect criminal conduct within the department; and

(2) independently and objectively investigating:

(A) criminal activity occurring in all divisions of the department;

(B) allegations of wrongdoing by department employees;

(C) crimes committed on department property; and

(D) serious breaches of department policy.

(d) The commission has direct oversight over the office of internal affairs, including decisions regarding budget and staffing. The commission [director] shall appoint the head of the office of internal affairs. The head of the office of internal affairs serves until removed by the commission [director]. The commission shall establish policies to ensure that the commission continues to oversee the office of internal affairs as required by this subsection and to ensure that the office of internal affairs retains and exercises its original jurisdiction under Subsection (b).

(f) The head of the office of internal affairs shall present at each regularly scheduled commission meeting and at other appropriate times:

(1) reports of investigations; and

(2) a summary of information relating to investigations conducted under this section that includes analysis of the number, type, and outcome of investigations, trends in the investigations, and recommendations to avoid future complaints.

SECTION 5.09. Sections 411.0195(d) and (e), Government Code, are repealed.

SECTION 5.10. This Act takes effect September 1, 2009.