By: Birdwell, et al. S.B. No. 616
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the continuation and functions of the Department of
  Public Safety of the State of Texas, the conditional transfer of the
  driver licensing program to the Texas Department of Motor Vehicles,
  the abolition of the Texas Private Security Board, the transfer of
  the motorcycle and off-highway vehicle operator training programs
  to the Texas Department of Licensing and Regulation, and the
  regulation of other programs administered by the Department of
  Public Safety; imposing an administrative penalty; authorizing and
  repealing the authorization for fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  CONTINUATION OF DEPARTMENT OF PUBLIC SAFETY AND
  MISCELLANEOUS ADMINISTRATIVE PROVISIONS
         SECTION 1.001.  Section 411.002(c), Government Code, is
  amended 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, 2031 [2019].
         SECTION 1.002.  Section 411.0031, Government Code, is
  amended by amending Subsection (b) and adding Subsection (d) to
  read as follows:
         (b)  The training program must provide the person with
  information regarding:
               (1)  the law governing [legislation that created] the
  department's operations [department and the commission];
               (2)  the programs, functions, rules, and budget of 
  [operated by] the department;
               (3)  the scope of and limitations on the rulemaking
  authority of the commission [role and functions of the department];
               (4)  the results of the most recent formal audit 
  [rules] of the department[, with an emphasis on the rules that
  relate to disciplinary and investigatory authority];
               (5)  [the current budget for the department;
               [(6)     the results of the most recent formal audit of the
  department;
               [(7)]  the requirements of:
                     (A)  laws relating to [the] open meetings, [law,
  Chapter 551;
                     [(B)  the] public information, [law, Chapter 552;
                     [(C)  the] administrative procedure, [law,
  Chapter 2001;] and disclosing conflicts of interest
                     [(D)     other laws relating to public officials,
  including conflict of interest laws]; and
                     (B)  other laws applicable to members of the
  commission in performing their duties; and
               (6) [(8)]  any applicable ethics policies adopted by
  the department or the Texas Ethics Commission.
         (d)  The director shall create a training manual that
  includes the information required by Subsection (b).  The director
  shall distribute a copy of the training manual annually to each
  member of the commission.  Each member of the commission shall sign
  and submit to the director a statement acknowledging that the
  member received and has reviewed the training manual.
         SECTION 1.003.  Subchapter A, Chapter 411, Government Code,
  is amended by adding Section 411.0045 to read as follows:
         Sec. 411.0045.  PHYSICAL FITNESS PROGRAMS. The commission
  shall adopt:
               (1)  physical fitness programs in accordance with
  Section 614.172; and
               (2)  a resolution certifying that the programs adopted
  under Subdivision (1) are consistent with generally accepted
  scientific standards and meet all applicable requirements of state
  and federal labor and employment law.
         SECTION 1.004.  Article 59.11, Code of Criminal Procedure,
  is repealed.
         SECTION 1.005.  The Department of Public Safety shall:
               (1)  develop and implement best practices for the
  collection, protection, and sharing of personal information held by
  the department; and
               (2)  not later than September 1, 2020, submit to the
  legislature a report regarding the department's development and
  implementation of the best practices under Subdivision (1).
  ARTICLE 2.  BORDER SECURITY
         SECTION 2.001.  Subchapter D, Chapter 411, Government Code,
  is amended by adding Section 411.055 to read as follows:
         Sec. 411.055.  ANNUAL REPORT ON BORDER CRIME AND OTHER
  CRIMINAL ACTIVITY. (a)  Not later than May 30 of each year, the
  department shall submit to the legislature a report on border crime
  and other criminal activity. The report must include:
               (1)  statistics for each month of the preceding
  calendar year and yearly totals of all border crime, as defined by
  Section 772.0071, and other criminal activity, including
  transnational criminal activity, the department determines relates
  to border security that occurred in each county included in a
  department region that is adjacent to the Texas-Mexico border; and
               (2)  statewide crime statistics for the crimes reported
  under Subdivision (1).
         (b)  In compiling the information for the report, the
  department shall use information available in the National
  Incident-Based Reporting System of the Uniform Crime Reporting
  Program of the Federal Bureau of Investigation and the Texas
  Incident-Based Reporting System of the department.
  ARTICLE 3.  METAL RECYCLING, VEHICLE INSPECTION, AND PROVISIONS
  APPLYING TO MORE THAN ONE REGULATORY PROGRAM
         SECTION 3.001.  Section 411.0891, Government Code, is
  amended by amending Subsection (a) and adding Subsection (d) to
  read as follows:
         (a)  Subject to Section 411.087, the department is
  authorized to obtain and use criminal history record information
  maintained by the Federal Bureau of Investigation or the department
  that relates to a person who:
               (1)  is an applicant for or holds a registration issued
  by the director under Subchapter C, Chapter 481, Health and Safety
  Code, that authorizes the person to manufacture, distribute,
  analyze, or conduct research with a controlled substance;
               (2)  is an applicant for or holds a registration issued
  by the department under Chapter 487, Health and Safety Code, to be a
  director, manager, or employee of a dispensing organization, as
  defined by Section 487.001 [a chemical precursor transfer permit
  issued by the director under Section 481.078], Health and Safety
  Code;
               (3)  is an applicant for or holds an authorization
  issued by the department under Section 521.2476, Transportation
  Code, to do business in this state as a vendor of ignition interlock
  devices [a chemical laboratory apparatus transfer permit issued by
  the director under Section 481.081, Health and Safety Code];
               (4)  is an applicant for or holds certification by the
  department as an inspection station or an inspector under
  Subchapter G, Chapter 548, Transportation Code, holds an inspection
  station or inspector certificate issued under that subchapter, or
  is the owner of an inspection station operating under that chapter;
  or
               (5)  is an applicant for or holds a certificate of
  registration issued by the department under Chapter 1956,
  Occupations Code, to act as a metal recycling entity [approval or
  has been approved as a program sponsor by the department under
  Chapter 662, Transportation Code, is an applicant for certification
  by the department as an instructor under that chapter, or holds an
  instructor certificate issued under that chapter].
         (d)  The department may require any person for whom the
  department is authorized to obtain and use criminal history record
  information maintained by the Federal Bureau of Investigation or
  the department under Subsection (a) to submit a complete and
  legible set of fingerprints to the department on a form prescribed
  by the department for the purpose of obtaining criminal history
  record information.
         SECTION 3.002.  Chapter 411, Government Code, is amended by
  adding Subchapters Q and R to read as follows:
  SUBCHAPTER Q.  POWERS AND DUTIES RELATED TO CERTAIN REGULATORY
  PROGRAMS
         Sec. 411.501.  DEFINITION. In this subchapter, "license"
  means a license, certificate, registration, permit, or other form
  of authorization required by law or a state agency rule that must be
  obtained by a person to engage in a particular activity, business,
  occupation, or profession.
         Sec. 411.502.  APPLICABILITY. This subchapter applies to a
  program, and persons regulated under the program, administered by
  the department under the following laws, including rules adopted
  under those laws:
               (1)  Section 411.0625; 
               (2)  Chapter 487, Health and Safety Code;
               (3)  Chapter 1702, Occupations Code;
               (4)  Chapter 1956, Occupations Code;
               (5)  Section 521.2476, Transportation Code; and
               (6)  Subchapter G, Chapter 548, Transportation Code.
         Sec. 411.503.  FINAL ENFORCEMENT AUTHORITY. (a)  Except as
  provided by Section 411.506(b), the commission shall make the final
  determination in an administrative action against a person for a
  violation of a law or rule governing a program or person subject to
  this subchapter.
         (b)  The commission may not delegate the duty under
  Subsection (a).
         Sec. 411.504.  COMPLAINTS. (a)  The department shall
  maintain a system to promptly and efficiently act on complaints
  filed with the department regarding a violation of a law or rule
  governing a program or person subject to this subchapter. The
  department shall maintain 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.
         (b)  The department shall make information available
  describing its procedures for complaint investigation and
  resolution.
         (c)  The department shall periodically notify the complaint
  parties of the status of the complaint until final disposition.
         (d)  On written request, the department shall inform the
  person filing the complaint and each person who is a subject of the
  complaint of the status of the investigation unless the information
  would jeopardize an ongoing investigation.
         (e)  The commission shall adopt rules to:
               (1)  implement this section; and
               (2)  establish a procedure for the investigation and
  resolution of complaints, including a procedure for documenting
  complaints to the department from the time of the submission of the
  initial complaint to the final disposition of the complaint.
         Sec. 411.505.  INVESTIGATIONS. The department may conduct
  investigations as necessary to enforce a law or rule governing a
  program or person subject to this subchapter.
         Sec. 411.506.  INFORMAL COMPLAINT RESOLUTION AND INFORMAL
  PROCEEDINGS. (a)  The commission by rule shall establish
  procedures for the informal resolution of complaints filed with the
  department related to a violation of a law or rule governing a
  program or person subject to this subchapter, including procedures
  governing: 
               (1)  informal disposition of a contested case under
  Section 2001.056; and
               (2)  an informal proceeding held in compliance with
  Section 2001.054.
         (b)  Any settlement agreement arising from the procedures
  described by Subsection (a) must be approved by the director or the
  director's designee. 
         Sec. 411.507.  LICENSE DENIAL; ADMINISTRATIVE SANCTION.
  (a)  This section applies to a person required to obtain a license
  under a program subject to this subchapter.
         (b)  The commission may deny an application for, revoke,
  suspend, or refuse to renew a license or may reprimand a license
  holder for a violation of a law or rule governing a program subject
  to this subchapter.
         (c)  The commission may place on probation a person whose
  license is suspended. If a license suspension is probated, the
  commission may require the person to:
               (1)  report regularly to the department on matters that
  are the basis of the probation;
               (2)  limit practice to the areas prescribed by the
  department; or
               (3)  continue or renew education until the person
  attains a degree of competency satisfactory to the commission in
  those areas that are the basis for the probation.
         (d)  The commission shall develop a penalty schedule for each
  program subject to this subchapter consisting of administrative
  sanctions authorized under Subsections (b) and (c) based on the
  severity and frequency of a violation of a law or rule related to
  the program.
         Sec. 411.508.  RIGHT TO NOTICE AND HEARING; ADMINISTRATIVE
  PROCEDURE. (a)  For each program subject to this subchapter, a
  person is entitled to notice and a hearing if the commission
  proposes to:
               (1)  deny an application for, revoke, suspend, or
  refuse to renew a license;
               (2)  reprimand a license holder; or
               (3)  place a license holder on probation. 
         (b)  A proceeding to impose an administrative sanction as
  described by Subsection (a) is a contested case under Chapter 2001.
         (c)  Unless otherwise provided by law, judicial review of an
  administrative sanction or penalty imposed by the commission is
  under the substantial evidence rule as provided by Subchapter G,
  Chapter 2001.
         Sec. 411.509.  CEASE AND DESIST ORDER. The department may
  issue a cease and desist order if the department determines that the
  action is necessary to prevent a violation of a law or rule
  governing a program or person subject to this subchapter.
         Sec. 411.510.  INJUNCTIVE RELIEF. (a)  On request of the
  department, the attorney general shall institute an action for
  injunctive relief to restrain a person in violation of or
  threatening to violate a law or rule governing a program or person
  subject to this subchapter.
         (b)  An action filed under this section shall be filed in a
  district court in:
               (1)  Travis County; or
               (2)  the county in which the violation allegedly
  occurred or is threatened to occur.
         (c)  The attorney general may recover reasonable expenses
  incurred in obtaining injunctive relief under this section,
  including court costs, attorney's fees, investigative costs,
  witness fees, and deposition expenses.
         Sec. 411.511.  STAGGERED RENEWAL; PRORATION OF LICENSE FEE.
  (a)  The commission by rule may adopt a system under which licenses
  expire on various dates during the year.
         (b)  A license issued under a program governed by this
  subchapter may not expire later than the second anniversary of the
  date the license is issued. 
         (c)  For the year in which the expiration date of a license is
  changed, the department 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.
         Sec. 411.512.  ANNUAL REGULATORY REPORT. (a)  The
  department shall annually make available on the department's
  Internet website a report of regulatory statistics for the
  preceding state fiscal year for each program subject to this
  subchapter and aggregate information on all the programs.
         (b)  The report must include, as applicable, information
  regarding:
               (1)  the number of licenses issued under the program;
               (2)  the number and types of complaints received and
  resolved by the department;
               (3)  the number of investigations conducted by the
  department; and
               (4)  the number and types of disciplinary actions taken
  by the department.
  SUBCHAPTER R.  ADMINISTRATIVE PENALTY
         Sec. 411.521.  DEFINITION. In this subchapter, "license"
  has the meaning assigned by Section 411.501.
         Sec. 411.522.  APPLICABILITY. This subchapter applies to a
  program, and persons regulated under the program, to which Section
  411.502 applies.
         Sec. 411.523.  IMPOSITION OF PENALTY. The commission may
  impose an administrative penalty against a person who violates:
               (1)  a law establishing a program subject to this
  subchapter; or
               (2)  a rule adopted or order issued by the commission
  under a law described by Subdivision (1).
         Sec. 411.524.  AMOUNT OF PENALTY. (a)  If the relevant law
  establishing a program subject to this subchapter does not state
  the maximum amount of an administrative penalty under that law, the
  amount of the penalty shall be assessed by the commission in an
  amount not to exceed $5,000 per day for each violation. Each day a
  violation continues or occurs is a separate violation for purposes
  of imposing a penalty.
         (b)  The amount of the penalty shall be based on:
               (1)  the seriousness of the violation;
               (2)  the respondent's history of previous violations;
               (3)  the amount necessary to deter a future violation;
               (4)  efforts made by the respondent to correct the
  violation; and
               (5)  any other matter that justice may require.
         (c)  The commission shall establish a written enforcement
  plan that provides notice to license holders of the specific ranges
  of penalties that apply to specific alleged violations and the
  criteria by which the department determines the amount of a
  proposed administrative penalty.
         Sec. 411.525.  IMPOSITION OF SANCTION. A proceeding under
  this subchapter imposing an administrative penalty may be combined
  with a proceeding to impose an administrative sanction. If a
  sanction is imposed in a proceeding under this subchapter, the
  requirements of this subchapter apply to the imposition of the
  sanction.
         Sec. 411.526.  NOTICE OF VIOLATION AND PENALTY. If, after
  investigation of a possible violation and the facts surrounding the
  possible violation, the department determines that a violation
  occurred, the department shall issue to the respondent a notice of
  alleged violation stating:
               (1)  a brief summary of the alleged violation;
               (2)  the amount of the recommended administrative
  penalty; and
               (3)  that the respondent has the right to a hearing to
  contest the alleged violation, the amount of the penalty, or both.
         Sec. 411.527.  PENALTY TO BE PAID OR HEARING REQUESTED.
  (a)  Not later than the 20th day after the date the respondent
  receives the notice, the respondent may:
               (1)  accept the department's determination and
  recommended administrative penalty; or
               (2)  make a written request for a hearing on that
  determination.
         (b)  If the respondent accepts the department's
  determination, the commission by order may approve the
  determination and require the person to pay the recommended
  penalty.
         Sec. 411.528.  HEARING ON RECOMMENDATIONS. (a)  If the
  respondent requests a hearing, the hearing shall be conducted by
  the department or the State Office of Administrative Hearings.
         (b)  The State Office of Administrative Hearings shall
  consider the department's applicable substantive rules and
  policies when conducting a hearing under this subchapter.
         (c)  A department hearing officer or an administrative law
  judge at the State Office of Administrative Hearings, as
  applicable, shall:
               (1)  make findings of fact and conclusions of law; and
               (2)  promptly issue to the commission a proposal for
  decision as to the occurrence of the violation and the amount of any
  proposed administrative penalty.
         Sec. 411.529.  DECISION BY COMMISSION. (a)  Based on the
  findings of fact, conclusions of law, and proposal for decision,
  the commission by order may determine that:
               (1)  a violation occurred and impose an administrative
  penalty; or
               (2)  a violation did not occur.
         (b)  The department shall give notice of the order to the
  respondent.
         (c)  The order under this section must include:
               (1)  separate statements of the findings of fact and
  conclusions of law;
               (2)  the amount of any penalty imposed;
               (3)  a statement of the right of the respondent to
  judicial review of the order; and
               (4)  any other information required by law.
         Sec. 411.530.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL.
  (a)  Not later than the 30th day after the date the commission's
  order becomes final, the respondent shall:
               (1)  pay the penalty; or
               (2)  file a petition for judicial review contesting the
  order and:
                     (A)  forward the penalty to the department for
  deposit in an escrow account; or
                     (B)  give the department a supersedeas bond in a
  form approved by the department that:
                           (i)  is for the amount of the penalty; and
                           (ii)  is effective until judicial review of
  the decision is final.
         (b)  A respondent who is financially unable to comply with
  Subsection (a)(2) is entitled to judicial review if the respondent
  files with the court, as part of the respondent's petition for
  judicial review, a sworn statement that the respondent is unable to
  meet the requirements of Subsection (a)(2).
         Sec. 411.531.  COLLECTION OF PENALTY. If the person on whom
  the administrative penalty is imposed violates Section 411.530(a),
  the department or the attorney general may bring an action to
  collect the penalty.
         Sec. 411.532.  REMITTANCE OF PENALTY AND INTEREST. (a)  If,
  after judicial review, the administrative penalty is reduced or not
  imposed, the department shall:
               (1)  remit to the person the appropriate amount, plus
  accrued interest, if the person paid the amount of the penalty; or
               (2)  execute a release of the bond, if the person posted
  a supersedeas bond.
         (b)  The interest paid under Subsection (a)(1) is accrued at
  the rate charged on loans to depository institutions by the New York
  Federal Reserve Bank. The interest shall be paid for the period
  beginning on the date the penalty is paid to the department and
  ending on the date the penalty is remitted.
         Sec. 411.533.  ADMINISTRATIVE PROCEDURE. (a)  The
  commission by rule shall prescribe procedures for the determination
  and appeal of a decision to impose an administrative penalty.
         (b)  A proceeding under this subchapter to impose an
  administrative penalty is a contested case under Chapter 2001.
         SECTION 3.003.  Section 1956.151, Occupations Code, is
  amended to read as follows:
         Sec. 1956.151.  DENIAL OF CERTIFICATE; DISCIPLINARY ACTION.
  The commission [department] shall deny an application for a
  certificate of registration, suspend or revoke a certificate of
  registration, or reprimand a person who is registered under this
  chapter if the person:
               (1)  obtains a certificate of registration by means of
  fraud, misrepresentation, or concealment of a material fact;
               (2)  sells, barters, or offers to sell or barter a
  certificate of registration;
               (3)  violates a provision of this chapter or a rule
  adopted under this chapter; or
               (4)  violates Section 1956.021.
         SECTION 3.004.  Sections 548.405(a), (c), and (g),
  Transportation Code, are amended to read as follows:
         (a)  The commission [department] may deny a person's
  application for a certificate, revoke or suspend the certificate of
  a person, inspection station, or inspector, place on probation a
  person who holds a suspended certificate, or reprimand a person who
  holds a certificate if:
               (1)  the station or inspector conducts an inspection,
  fails to conduct an inspection, or issues a certificate:
                     (A)  in violation of this chapter or a rule
  adopted under this chapter; or
                     (B)  without complying with the requirements of
  this chapter or a rule adopted under this chapter;
               (2)  the person, station, or inspector commits an
  offense under this chapter or violates this chapter or a rule
  adopted under this chapter;
               (3)  the applicant or certificate holder does not meet
  the standards for certification under this chapter or a rule
  adopted under this chapter;
               (4)  the station or inspector does not maintain the
  qualifications for certification or does not comply with a
  certification requirement under this subchapter [Subchapter G];
               (5)  the certificate holder or the certificate holder's
  agent, employee, or representative commits an act or omission that
  would cause denial, revocation, or suspension of a certificate to
  an individual applicant or certificate holder; or
               (6)  the station or inspector does not pay a fee
  required by Subchapter H[; or
               [(7)     the inspector or owner of an inspection station
  is convicted of a:
                     [(A)  felony or Class A or Class B misdemeanor;
                     [(B)     similar crime under the jurisdiction of
  another state or the federal government that is punishable to the
  same extent as a felony or a Class A or Class B misdemeanor in this
  state; or
                     [(C)     crime under the jurisdiction of another
  state or the federal government that would be a felony or a Class A
  or Class B misdemeanor if the crime were committed in this state].
         (c)  If the commission [department] suspends a certificate
  because of a violation of Subchapter F, the suspension must be for a
  period of not less than six months. [The suspension may not be
  probated or deferred.]
         (g)  The commission [department] may not suspend, revoke, or
  deny all certificates of a person who holds more than one inspection
  station certificate based on a suspension, revocation, or denial of
  one of that person's inspection station certificates without proof
  of culpability related to a prior action under this subsection.
         SECTION 3.005.  Subchapter G, Chapter 548, Transportation
  Code, is amended by adding Section 548.4055 to read as follows:
         Sec. 548.4055.  RULES REGARDING CRIMINAL CONVICTIONS.  The
  commission shall adopt rules necessary to comply with Chapter 53,
  Occupations Code, with respect to the certification of persons
  under this subchapter.  The commission's rules must list the
  specific offenses for each category of persons regulated under this
  subchapter for which a conviction would constitute grounds for the
  commission to take action under Section 53.021, Occupations Code.
         SECTION 3.006.  Sections 548.407(d) and (e), Transportation
  Code, are amended to read as follows:
         (d)  The commission [department] may provide that a
  revocation or suspension takes effect on receipt of notice under
  Subsection (b) if the commission [department] finds that the action
  is necessary to prevent or remedy a threat to public health, safety,
  or welfare. Violations that present a threat to public health,
  safety, or welfare include:
               (1)  issuing a passing vehicle inspection report or
  submitting inspection information to the department's database
  with knowledge that the issuance or submission is in violation of
  this chapter or rules adopted under this chapter;
               (2)  falsely or fraudulently representing to the owner
  or operator of a vehicle that equipment inspected or required to be
  inspected must be repaired, adjusted, or replaced for the vehicle
  to pass an inspection;
               (3)  issuing a vehicle inspection report or submitting
  inspection information to the department's database:
                     (A)  without authorization to issue the report or
  submit the information; or
                     (B)  without inspecting the vehicle;
               (4)  issuing a passing vehicle inspection report or
  submitting inspection information to the department's database for
  a vehicle with knowledge that the vehicle has not been repaired,
  adjusted, or corrected after an inspection has shown a repair,
  adjustment, or correction to be necessary;
               (5)  knowingly issuing a passing vehicle inspection
  report or submitting inspection information to the department's
  database:
                     (A)  for a vehicle without conducting an
  inspection of each item required to be inspected; or
                     (B)  for a vehicle that is missing an item
  required to be inspected or that has an item required to be
  inspected that is not in compliance with state law or department
  rules;
               (6)  refusing to allow a vehicle's owner to have a
  qualified person of the owner's choice make a required repair,
  adjustment, or correction;
               (7)  charging for an inspection an amount greater than
  the authorized fee;
               (8)  a violation of Subchapter F;
               (9)  a violation of Section 548.603; or
               (10)  a conviction of a felony or a Class A or B
  misdemeanor that directly relates to or affects the duties or
  responsibilities of a vehicle inspection station or inspector or a
  conviction of a similar crime under the jurisdiction of another
  state or the federal government.
         (e)  The commission may adopt rules to implement this
  section.  [For purposes of Subsection (d)(10), a person is
  convicted of an offense if a court enters against the person an
  adjudication of the person's guilt, including an order of probation
  or deferred adjudication.]
         SECTION 3.007.  Subchapter G, Chapter 548, Transportation
  Code, is amended by adding Section 548.410 to read as follows:
         Sec. 548.410.  EXPIRATION OF CERTIFICATE. A certificate
  issued to an inspector or an inspection station under this
  subchapter expires as determined by the department under Section
  411.511, Government Code, but not later than the second anniversary
  of the date the certificate is issued.
         SECTION 3.008.  Section 548.506, Transportation Code, is
  amended to read as follows:
         Sec. 548.506.  FEE FOR CERTIFICATION AS INSPECTOR AND
  INSPECTION STATION.  The commission by rule shall establish
  reasonable and necessary fees for certification as an inspector or
  inspection station.  [An applicant for certification as an
  inspector must submit with the applicant's first application a fee
  of $25 for certification until August 31 of the even-numbered year
  following the date of certification. To be certified after August
  31 of that year, the applicant must pay $25 as a certificate fee for
  each subsequent two-year period.]
         SECTION 3.009.  The following provisions are repealed:
               (1)  Sections 1956.014(b) and (c), Occupations Code;
               (2)  Sections 1956.041(b-2), (c), (d), (e), and (f),
  Occupations Code;
               (3)  Section 1956.152, Occupations Code;
               (4)  Sections 548.405(b), (h), and (i), Transportation
  Code;
               (5)  Section 548.406, Transportation Code;
               (6)  Sections 548.407(f), (g), (h), (i), (j), (k), and
  (l), Transportation Code;
               (7)  Section 548.409, Transportation Code; and
               (8)  Section 548.507, Transportation Code.
         SECTION 3.010.  As soon as practicable after the effective
  date of this Act, the Public Safety Commission shall adopt rules
  necessary to implement the changes in law made by this Act to
  Chapter 411, Government Code, Chapter 1956, Occupations Code, and
  Chapter 548, Transportation Code.
         SECTION 3.011.  Section 411.0891, Government Code, and
  Sections 548.405 and 548.407, Transportation Code, as amended by
  this Act, apply only to an application for the issuance or renewal
  of a license submitted on or after the effective date of this Act.
  An application for the issuance or renewal of a license submitted
  before that date is governed by the law in effect on the date the
  application was submitted, and the former law is continued in
  effect for that purpose.
         SECTION 3.012.  Section 548.405(c), Transportation Code, as
  amended by this Act, applies only to a person placed on probation on
  or after the effective date of this Act. A person placed on
  probation before the effective date of this Act is governed by the
  law in effect on the date the person was placed on probation, and
  the former law is continued in effect for that purpose.
         SECTION 3.013.  Section 1956.041, Occupations Code, and
  Sections 548.405 and 548.407, Transportation Code, as amended by
  this Act, apply only to a proceeding initiated on or after the
  effective date of this Act. A proceeding initiated before the
  effective date of this Act is governed by the law in effect on the
  date the proceeding was initiated, and the former law is continued
  in effect for that purpose.
  ARTICLE 4.  CERTAIN PROGRAMS REGULATING CONTROLLED SUBSTANCES,
  PRECURSOR CHEMICALS, AND LABORATORY APPARATUSES
         SECTION 4.001.  Sections 481.077(c), (i), and (k), Health
  and Safety Code, are amended to read as follows:
         (c)  This section does [and Section 481.078 do] not apply to
  a person to whom a registration has been issued by the Federal Drug
  Enforcement Agency or who is exempt from such registration.
         (i)  A manufacturer, wholesaler, retailer, or other person
  who [receives from a source outside this state a chemical precursor
  subject to Subsection (a) or who] discovers a loss or theft of a
  chemical precursor subject to Subsection (a) shall:
               (1)  submit a report of the transaction to the director
  in accordance with department rule; and
               (2)  include in the report:
                     (A)  any difference between the amount of the
  chemical precursor actually received and the amount of the chemical
  precursor shipped according to the shipping statement or invoice;
  or
                     (B)  the amount of the loss or theft.
         (k)  A [Unless the person is the holder of only a permit
  issued under Section 481.078(b)(1), a] manufacturer, wholesaler,
  retailer, or other person who sells, transfers, or otherwise
  furnishes any chemical precursor subject to Subsection (a), or a
  [permit holder,] commercial purchaser[,] or other person who
  receives a chemical precursor subject to Subsection (a):
               (1)  shall maintain records and inventories in
  accordance with rules established by the director;
               (2)  shall allow a member of the department or a peace
  officer to conduct audits and inspect records of purchases and
  sales and all other records made in accordance with this section at
  any reasonable time; and
               (3)  may not interfere with the audit or with the full
  and complete inspection or copying of those records.
         SECTION 4.002.  The heading to Section 481.080, Health and
  Safety Code, is amended to read as follows:
         Sec. 481.080.  CHEMICAL LABORATORY APPARATUS RECORD-KEEPING
  REQUIREMENTS [AND PENALTIES].
         SECTION 4.003.  Sections 481.080(d), (j), and (l), Health
  and Safety Code, are amended to read as follows:
         (d)  This section does [and Section 481.081 do] not apply to
  a person to whom a registration has been issued by the Federal Drug
  Enforcement Agency or who is exempt from such registration.
         (j)  A manufacturer, wholesaler, retailer, or other person
  who [receives from a source outside this state a chemical
  laboratory apparatus subject to Subsection (a) or who] discovers a
  loss or theft of such an apparatus shall:
               (1)  submit a report of the transaction to the director
  in accordance with department rule; and
               (2)  include in the report:
                     (A)  any difference between the number of the
  apparatus actually received and the number of the apparatus shipped
  according to the shipping statement or invoice; or
                     (B)  the number of the loss or theft.
         (l)  This subsection applies to a manufacturer, wholesaler,
  retailer, or other person who sells, transfers, or otherwise
  furnishes any chemical laboratory apparatus subject to Subsection
  (a) and to a [permit holder,] commercial purchaser[,] or other
  person who receives such an apparatus [unless the person is the
  holder of only a permit issued under Section 481.081(b)(1)]. A
  person covered by this subsection:
               (1)  shall maintain records and inventories in
  accordance with rules established by the director;
               (2)  shall allow a member of the department or a peace
  officer to conduct audits and inspect records of purchases and
  sales and all other records made in accordance with this section at
  any reasonable time; and
               (3)  may not interfere with the audit or with the full
  and complete inspection or copying of those records.
         SECTION 4.004.  Section 481.111(a), Health and Safety Code,
  is amended to read as follows:
         (a)  The provisions of this chapter relating to the
  possession and distribution of peyote do not apply to the use of
  peyote by a member of the Native American Church in bona fide
  religious ceremonies of the church or to[. However,] a person who
  supplies the substance to the church [must register and maintain
  appropriate records of receipts and disbursements in accordance
  with rules adopted by the director]. An exemption granted to a
  member of the Native American Church under this section does not
  apply to a member with less than 25 percent Indian blood.
         SECTION 4.005.  Section 481.136(a), Health and Safety Code,
  is amended to read as follows:
         (a)  A person commits an offense if the person sells,
  transfers, furnishes, or receives a chemical precursor subject to
  Section 481.077(a) and the person:
               (1)  [does not hold a chemical precursor transfer
  permit as required by Section 481.078 at the time of the
  transaction;
               [(2)]  does not comply with Section 481.077 or
  481.0771;
               (2) [(3)]  knowingly makes a false statement in a
  report or record required by Section 481.077 or[,] 481.0771[, or
  481.078]; or
               (3) [(4)]  knowingly violates a rule adopted under
  Section 481.077 or[,] 481.0771[, or 481.078].
         SECTION 4.006.  Section 481.138(a), Health and Safety Code,
  is amended to read as follows:
         (a)  A person commits an offense if the person sells,
  transfers, furnishes, or receives a chemical laboratory apparatus
  subject to Section 481.080(a) and the person:
               (1)  [does not have a chemical laboratory apparatus
  transfer permit as required by Section 481.081 at the time of the
  transaction;
               [(2)]  does not comply with Section 481.080;
               (2) [(3)]  knowingly makes a false statement in a
  report or record required by Section 481.080 [or 481.081]; or
               (3) [(4)]  knowingly violates a rule adopted under
  Section 481.080 [or 481.081].
         SECTION 4.007.  Section 481.301, Health and Safety Code, is
  amended to read as follows:
         Sec. 481.301.  IMPOSITION OF PENALTY. The department may
  impose an administrative penalty on a person who violates Section
  481.067, 481.077, 481.0771, or [481.078,] 481.080[, or 481.081] or
  a rule or order adopted under any of those sections.
         SECTION 4.008. Section 487.053(b), Health and Safety Code,
  is amended to read as follows:
         (b)  Subject to Section 411.503, Government Code, the [The]
  department shall enforce compliance of licensees and registrants
  and shall adopt procedures for suspending or revoking a license or
  registration issued under this chapter and for renewing a license
  or registration issued under this chapter.
         SECTION 4.009.  Sections 487.104(b) and (c), Health and
  Safety Code, are amended to read as follows:
         (b)  If the department denies the issuance or renewal of a
  license under Subsection (a), the applicant is entitled to a
  hearing.  Chapter 2001, Government Code, applies to a proceeding
  under this section.  [The department shall give written notice of
  the grounds for denial to the applicant at least 30 days before the
  date of the hearing.]
         (c)  A license issued or renewed under this section expires
  as determined by the department in accordance with Section 411.511,
  Government Code [on the second anniversary of the date of issuance
  or renewal, as applicable].
         SECTION 4.010.  Section 487.105(c), Health and Safety Code,
  is amended to read as follows:
         (c)  The department shall conduct a criminal history
  background check on each individual whose name is provided to the
  department under Subsection (a) or (b). The director by rule shall:
               (1)  require each individual whose name is provided to
  the department under Subsection (a) or (b) [determine the manner by
  which an individual is required] to submit a complete set of
  fingerprints to the department on a form prescribed by the
  department for purposes of a criminal history background check
  under this section; and
               (2)  establish criteria for determining whether an
  individual passes the criminal history background check for the
  purposes of this section.
         SECTION 4.011.  The following provisions of the Health and
  Safety Code are repealed:
               (1)  Sections 481.077(e), (f), (g), and (h);
               (2)  Section 481.078;
               (3)  Sections 481.080(f), (g), (h), and (i); and
               (4)  Section 481.081.
         SECTION 4.012.  As soon as practicable after the effective
  date of this Act, the public safety director of the Department of
  Public Safety shall adopt rules to implement the changes made by
  Section 487.105(c), Health and Safety Code, as amended by this Act.
         SECTION 4.013.  The changes in law made by this Act to
  Chapter 481, Health and Safety Code, apply only to an offense or
  violation committed on or after the effective date of this Act. An
  offense or violation committed before the effective date of this
  Act is governed by the law in effect on the date the offense or
  violation was committed, and the former law is continued in effect
  for that purpose. For purposes of this section, an offense or
  violation was committed before the effective date of this Act if any
  element of the offense or violation occurred before that date.
         SECTION 4.014.  On the effective date of this Act, a permit
  issued under former Section 481.078 or 481.081, Health and Safety
  Code, expires.
  ARTICLE 5.  PRIVATE SECURITY
         SECTION 5.001.  Section 1702.002, Occupations Code, is
  amended by amending Subdivisions (2), (5), (5-a), (17), and (21)
  and adding Subdivisions (4), (5-b), (5-c), and (8-a) 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 department [board] records.
               (4)  "Commission" means the Public Safety Commission.
               (5)  "Commissioned security officer" means a security
  officer to whom a security officer commission has been issued by the
  department [board].
               (5-a)  "Committee" means the Texas Private Security
  Advisory Committee established under this chapter.
               (5-b)  "Company license" means a license issued by the
  department that entitles a person to operate as a security services
  contractor or investigations company.
               (5-c)  "Department" means the Department of Public
  Safety of the State of Texas.
               (8-a)  "Individual license" means a license issued by
  the department that entitles an individual to perform a service
  regulated by this chapter for a company license holder, including a
  personal protection officer license.
               (17)  "Personal protection officer license
  [endorsement]" means a license [permit] issued by the department
  [board] that entitles an individual to act as a personal protection
  officer.
               (21)  "Security officer commission" means an
  authorization issued by the department [board] that entitles a
  security officer to carry a firearm.
         SECTION 5.002.  Section 1702.004, Occupations Code, is
  amended to read as follows:
         Sec. 1702.004.  GENERAL SCOPE OF REGULATION. (a)  The
  department [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)  licenses [issues endorsements to] certain
  security officers engaged in the personal protection of
  individuals;
               (4)  licenses [registers and endorses]:
                     (A)  certain individuals connected with a company
  license holder; and
                     (B)  certain individuals employed in a field
  connected to private investigation or private security; and
               (5)  regulates company license holders, security
  officers, [registrants,] and individual license [endorsement]
  holders under this chapter.
         (b)  The commission [board] shall adopt rules necessary to
  comply with Chapter 53. In its rules under this section, the
  commission [board] shall list the specific offenses for each
  category of regulated persons for which a conviction would
  constitute grounds for the department [board] to take action under
  Section 53.021.
         SECTION 5.003.  Section 1702.005, Occupations Code, is
  amended to read as follows:
         Sec. 1702.005.  DEPARTMENT OF PUBLIC SAFETY; REFERENCES.
  (a)  [The board created under Section 1702.021 is a part of the
  department.] The department shall administer this chapter [through
  the board].
         (b)  A reference in this chapter or another law to the Texas
  Commission on Private Security or the Texas Private Security Board
  means the department [board].
         SECTION 5.004.  The heading to Subchapter B, Chapter 1702,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER B. TEXAS PRIVATE SECURITY ADVISORY COMMITTEE [BOARD]
         SECTION 5.005.  Section 1702.021, Occupations Code, is
  amended to read as follows:
         Sec. 1702.021.  COMMITTEE [BOARD] MEMBERSHIP; APPLICABILITY
  OF OTHER LAW. (a)  The Texas Private Security Advisory Committee
  [Board] consists of seven members appointed by the commission
  [governor with the advice and consent of the senate] as follows:
               (1)  three 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;
               (4)  one member who is licensed under this chapter as
  the owner or operator of a guard company; and
               (5)  one member who is licensed under this chapter as a
  locksmith.
         (b)  Appointments to the committee [board] shall be made
  without regard to the race, color, disability, sex, religion, age,
  or national origin of the appointee.
         (c)  Chapter 2110, Government Code, does not apply to the
  size, composition, or duration of the advisory committee or to the
  appointment of the committee's presiding officer.
         SECTION 5.006.  Section 1702.023, Occupations Code, is
  amended to read as follows:
         Sec. 1702.023.  ELIGIBILITY OF PUBLIC MEMBERS. The
  committee's [board's] public members must be representatives of the
  general public. A person may not be a public member of the
  committee [board] 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 department [board];
               (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 department
  [board]; or
               (4)  uses or receives a substantial amount of tangible
  goods, services, or money from the department [board] other than
  compensation or reimbursement authorized by law for committee
  [board] membership, attendance, or expenses.
         SECTION 5.007.  Sections 1702.024(b) and (c), Occupations
  Code, are amended to read as follows:
         (b)  A person may not be a committee [board] member, and may
  not be a department employee whose primary duties include private
  security regulation and who is 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 committee [board] member or act as
  general counsel to the committee or department [board 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 committee [agency].
         SECTION 5.008.  Section 1702.025, Occupations Code, is
  amended to read as follows:
         Sec. 1702.025.  TERMS; VACANCIES. (a)  The committee
  [board] members serve staggered six-year terms, with the terms of
  two or three members expiring on January 31 of each odd-numbered
  year.
         (b)  If a vacancy occurs during the term of a committee
  [board] member, the commission [governor] shall appoint a new
  member to fill the unexpired term.
         SECTION 5.009.  Section 1702.026, Occupations Code, is
  amended to read as follows:
         Sec. 1702.026.  OFFICERS. (a)  The commission [governor]
  shall designate one committee [board] member as presiding officer
  to serve in that capacity at the will of the commission [governor].
  The commission [governor] shall designate the presiding officer
  without regard to race, creed, color, disability, sex, religion,
  age, or national origin.
         (b)  The committee [board] shall elect from among its members
  an assistant presiding officer and a secretary to serve two-year
  terms beginning on September 1 of each odd-numbered year.
         (c)  The presiding officer of the committee [board] or, in
  the absence of the presiding officer, the assistant presiding
  officer shall preside at each committee [board] meeting and perform
  the other duties prescribed by this chapter.
         SECTION 5.010.  Sections 1702.027(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  It is a ground for removal from the committee [board]
  that a member:
               (1)  does not have the qualifications required by
  Section 1702.021 at the time of appointment [taking office];
               (2)  does not maintain the qualifications required by
  Section 1702.021 during service on the committee [board];
               (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 committee [board] meetings that the member is eligible to
  attend during a calendar year without an excuse approved by a
  majority vote of the committee [board].
         (b)  The validity of an action of the committee [board] is
  not affected by the fact that it is taken when a ground for removal
  of a committee [board] member exists.
         SECTION 5.011.  Section 1702.029, Occupations Code, is
  amended to read as follows:
         Sec. 1702.029.  MEETINGS. The committee [board] shall meet
  at least quarterly [at regular intervals to be decided by the
  board].
         SECTION 5.012.  Subchapter B, Chapter 1702, Occupations
  Code, is amended by adding Sections 1702.031 and 1702.032 to read as
  follows:
         Sec. 1702.031.  DUTIES OF ADVISORY COMMITTEE. The committee
  shall provide advice and recommendations to the department and
  commission on technical matters relevant to the administration of
  this chapter and the regulation of private security industries.
         Sec. 1702.032.  COMMISSION LIAISON. The commission shall
  designate a commission member to serve as a liaison to the
  committee.
         SECTION 5.013.  Section 1702.041, Occupations Code, is
  amended to read as follows:
         Sec. 1702.041.  CHIEF ADMINISTRATOR. (a)  The chief
  administrator is responsible for the administration of this chapter
  under the direction of the public safety director [board].  The
  chief administrator shall perform duties as prescribed by the
  public safety director [board and the department].
         (b)  The chief administrator is a full-time employee of the
  department.  A committee [board] member may not serve as chief
  administrator.
         SECTION 5.014.  Section 1702.044, Occupations Code, is
  amended to read as follows:
         Sec. 1702.044.  QUALIFICATIONS AND STANDARDS OF CONDUCT
  INFORMATION. The chief administrator or the chief administrator's
  designee shall provide to committee [board] members and to
  department [agency] employees, as often as necessary, information
  regarding the requirements for service as a committee member 
  [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 5.015.  The heading to Subchapter D, Chapter 1702,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER D.  POWERS AND DUTIES [OF BOARD]
         SECTION 5.016.  Section 1702.061, Occupations Code, is
  amended to read as follows:
         Sec. 1702.061.  GENERAL POWERS AND DUTIES [OF BOARD].
  (a)  [The board shall perform the functions and duties provided by
  this chapter.
         [(b)]  The commission [board] shall adopt rules and general
  policies to guide the department [agency] in the administration of
  this chapter.
         (b) [(c)]  The rules and policies adopted by the commission
  [board] under Subsection (a) [(b)] must be consistent with this
  chapter and other commission [board] rules adopted under this
  chapter and with any other applicable law, state rule, or federal
  regulation.
         (c) [(d)]  The commission [board] has the powers and duties
  to:
               (1)  determine the qualifications of company license
  holders, individual license holders [registrants, endorsement
  holders], and commissioned security officers;
               (2)  investigate alleged violations of this chapter and
  of commission [board] rules;
               (3)  adopt rules necessary to implement this chapter;
  and
               (4)  establish and enforce standards governing the
  safety and conduct of each person regulated [licensed, registered,
  or commissioned] under this chapter.
         [(e)     The board shall have a seal in the form prescribed by
  the board.]
         SECTION 5.017.  Section 1702.062, Occupations Code, is
  amended to read as follows:
         Sec. 1702.062.  FEES. (a)  The commission [board] by rule
  shall establish reasonable and necessary fees that produce
  sufficient revenue to administer this chapter. The fees may not
  produce unnecessary fund balances.
         (b)  The department [board] may charge a fee each time the
  department [board] requires a person regulated under this chapter
  to resubmit a set of fingerprints for processing by the department
  [board] during the application process for a company license,
  individual license, [registration, endorsement,] or security
  officer commission. The commission [board] shall set the fee in an
  amount that is reasonable and necessary to cover the administrative
  expenses related to processing the fingerprints.
         (c)  A person whose pocket card has not expired is not
  eligible to receive from the department [board] another pocket card
  in the same classification in which the pocket card is held.
         SECTION 5.018.  The heading to Section 1702.063, Occupations
  Code, is amended to read as follows:
         Sec. 1702.063.  [BOARD] USE OF FINES.
         SECTION 5.019.  Section 1702.0635, Occupations Code, is
  amended to read as follows:
         Sec. 1702.0635.  RESTRICTIONS ON CERTAIN RULES. The
  commission [board] 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 licensed [registered] as an electronic access
  control device installer.
         SECTION 5.020.  Section 1702.064, Occupations Code, is
  amended to read as follows:
         Sec. 1702.064.  RULES RESTRICTING ADVERTISING OR
  COMPETITIVE BIDDING. (a)  The commission [board] may not adopt
  rules restricting advertising or competitive bidding by a person
  regulated under this chapter [by the board] except to prohibit
  false, misleading, or deceptive practices by the person.
         (b)  The commission [board] may not include in its rules to
  prohibit false, misleading, or deceptive practices by a person
  regulated under this chapter [by the board] 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 5.021.  Section 1702.0645, Occupations Code, is
  amended to read as follows:
         Sec. 1702.0645.  PAYMENT OF FEES AND FINES. (a)  The
  commission [board] 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 department [board]; 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 5.022.  Section 1702.067, Occupations Code, is
  amended to read as follows:
         Sec. 1702.067.  [BOARD] RECORDS; EVIDENCE. An official
  record of the department related to this chapter [board] or an
  affidavit by the chief administrator as to the content of the record
  is prima facie evidence of a matter required to be kept by the
  department [board].
         SECTION 5.023.  Section 1702.068, Occupations Code, is
  amended to read as follows:
         Sec. 1702.068.  APPEAL BOND NOT REQUIRED. The department
  [board] is not required to give an appeal bond in any cause arising
  under this chapter.
         SECTION 5.024.  The heading to Subchapter E, Chapter 1702,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER E.  PUBLIC INTEREST INFORMATION [AND COMPLAINT
  PROCEDURES]
         SECTION 5.025.  Section 1702.084, Occupations Code, is
  amended to read as follows:
         Sec. 1702.084.  PUBLIC ACCESS TO CERTAIN RECORDS OF
  DISCIPLINARY ACTIONS. (a)  The department [board] shall make
  available to the public through a toll-free telephone number,
  Internet website, or other easily accessible medium determined by
  the department [board] the following information relating to a
  disciplinary action taken during the preceding three years
  regarding a person regulated under this chapter [by the board]:
               (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 commission
  [board].
         (b)  In providing the information, the department [board]
  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 department [board] shall update the information on a
  monthly basis.
         (d)  The department [board] shall maintain the
  confidentiality of information regarding the identification of a
  complainant.
         SECTION 5.026.  Section 1702.085, Occupations Code, is
  amended to read as follows:
         Sec. 1702.085.  CONFIDENTIALITY OF RECORDS. Records
  maintained by the department under this chapter on the home
  address, home telephone number, driver's license number, or social
  security number of an applicant or a company license holder,
  individual license holder [registrant], or security officer
  commission holder are confidential and are not subject to mandatory
  disclosure under Chapter 552, Government Code.
         SECTION 5.027.  Section 1702.102(a), Occupations Code, is
  amended to read as follows:
         (a)  Unless the person holds a license as a security services
  contractor, a person may not:
               (1)  act as an alarm systems company, armored car
  company, courier company, guard company, or [guard dog company,]
  locksmith company[, or private security consultant company];
               (2)  offer to perform the services of a company in
  Subdivision (1); or
               (3)  engage in business activity for which a license is
  required under this chapter.
         SECTION 5.028.  Section 1702.1025(b), Occupations Code, is
  amended to read as follows:
         (b)  A person licensed as an electronic access control device
  company may not install alarm systems unless otherwise licensed [or
  registered] to install alarm systems under this chapter.
         SECTION 5.029.  Section 1702.103, Occupations Code, is
  amended to read as follows:
         Sec. 1702.103.  CLASSIFICATION AND LIMITATION OF COMPANY
  LICENSES. (a)  The company 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;
               (4)  Class F:  level III training school license; and
               (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].
         (b)  A company license described by this chapter does not
  authorize the company license holder to perform a service for which
  the company license holder has not qualified. A person may not
  engage in an operation outside the scope of that person's company
  license. The department [board] shall indicate on the company
  license the services the company license holder is authorized to
  perform. The company license holder may not perform a service
  unless it is indicated on the company license.
         (c)  A company license is not assignable unless the
  assignment is approved in advance by the department [board].
         (d)  The commission [board] shall prescribe by rule the
  procedure under which a company license may be terminated.
         (e)  The commission [board] by rule may establish other
  company license classifications for activities expressly regulated
  by this chapter and may establish qualifications and practice
  requirements consistent with this chapter for those company license
  classifications.
         SECTION 5.030.  Section 1702.110, Occupations Code, is
  amended to read as follows:
         Sec. 1702.110.  APPLICATION FOR COMPANY LICENSE. (a)  An
  application for a company license under this chapter must be in the
  form prescribed by the department [board] 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 who oversees the security-related aspects of the business,
  and director of the applicant[, and of the applicant's manager];
               (6)  if the applicant is an individual, the
  fingerprints of the applicant or, if the applicant is an entity
  other than an individual, of each officer who oversees the
  security-related aspects of the business and of each partner or
  shareholder who owns at least a 25 percent interest in the
  applicant, provided in the manner prescribed by the department
  [board];
               (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 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 department [board].
         (b)  An applicant for a company license as a security
  services contractor shall maintain a physical address within this
  state and provide that address to the department [board]. The
  commission [board] shall adopt rules to enable an out-of-state
  company license holder to comply with this subsection.
         (c)  The department may return an application for a company
  license as incomplete if the applicant submits payment of a fee that
  is returned for insufficient funds and the applicant has received
  notice and an opportunity to provide payment in full.
         SECTION 5.031.  Section 1702.112, Occupations Code, is
  amended to read as follows:
         Sec. 1702.112.  FORM OF COMPANY LICENSE. The department
  [board] shall prescribe the form of a company license[, including a
  branch office license]. The company license must include:
               (1)  the name of the company license holder;
               (2)  the name under which the company license holder is
  to operate;
               (3)  the company license number and the date the
  company license was issued; and
               (4)  a photograph of the company license holder,
  affixed to the company license at the time the company license is
  issued by the department [board].
         SECTION 5.032.  The heading to Section 1702.113, Occupations
  Code, is amended to read as follows:
         Sec. 1702.113.  GENERAL QUALIFICATIONS FOR COMPANY
  LICENSE[, CERTIFICATE OF REGISTRATION,] OR SECURITY OFFICER
  COMMISSION.
         SECTION 5.033.  Section 1702.113(a), Occupations Code, is
  amended to read as follows:
         (a)  An applicant for a company 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)  at the time of application be charged under an
  information or indictment with the commission of a Class A or Class
  B misdemeanor or felony offense determined to be disqualifying by
  commission [board] rule;
               (2)  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)  have been dishonorably discharged from the United
  States armed services, discharged from the United States armed
  services under other conditions determined by the commission
  [board] to be prohibitive, or dismissed from the United States
  armed services if a commissioned officer in the United States armed
  services; or
               (4)  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].
         SECTION 5.034.  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 company
  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
  commission [board].
         (b)  The applicant's experience must be:
               (1)  reviewed by the department [board or the chief
  administrator]; and
               (2)  determined to be adequate to qualify the applicant
  to engage in the business of an investigations company.
         SECTION 5.035.  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 company
  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 commission [board].
         (b)  The applicant's experience must have been obtained
  legally and must be:
               (1)  reviewed by the department [board or the chief
  administrator]; and
               (2)  determined to be adequate to qualify the applicant
  to engage in the business of a security services contractor.
         SECTION 5.036.  Section 1702.117, Occupations Code, is
  amended to read as follows:
         Sec. 1702.117.  EXAMINATION. (a)  The department [board]
  shall require an applicant for a company license under this chapter
  [or the applicant's manager] to demonstrate qualifications in the
  person's company license classification, including knowledge of
  applicable state laws and commission [board] rules, by taking an
  examination to be determined by the commission [board].
         (b)  Payment of the application fee entitles the applicant
  [or the applicant's manager] to take one examination without
  additional charge. A person who fails the examination must pay a
  reexamination fee to take a subsequent examination.
         (c)  The commission [board] shall set the reexamination fee
  in an amount not to exceed the amount of the renewal fee for the
  company license classification for which application was made.
         (d)  The department [board] shall develop and provide to a
  person who applies to take the examination under Subsection (a)
  material containing all applicable state laws and commission
  [board] rules.
         SECTION 5.037.  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 department [board] shall notify the person
  of the examination results.
         (b)  If an examination is graded or reviewed by a testing
  service:
               (1)  the department [board] shall notify the person of
  the examination results not later than the 14th day after the date
  the department [board] 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
  department [board] shall notify the person of the reason for the
  delay before the 90th day.
         (c)  The department [board] 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
  department [board] shall furnish the person with an analysis of the
  person's performance on the examination.
         SECTION 5.038.  Section 1702.1183, Occupations Code, is
  amended to read as follows:
         Sec. 1702.1183.  RECIPROCAL COMPANY LICENSE FOR CERTAIN
  APPLICANTS. (a)  The department [board] may waive any prerequisite
  to obtaining a company license for an applicant who holds a company
  license issued by another jurisdiction with which this state has a
  reciprocity agreement.
         (b)  The commission [board] may make an agreement, subject to
  the approval of the governor, with another state to allow for
  licensing by reciprocity.
         (c)  The commission [board] shall adopt rules under which the
  commission [board] may waive any prerequisite to obtaining a
  company license for, and credit experience for a company license
  requirement to, an individual who the commission [board] determines
  has acceptable experience gained during service in a branch of the
  United States armed forces, including the United States Coast
  Guard.
         SECTION 5.039.  Section 1702.1186, Occupations Code, is
  amended to read as follows:
         Sec. 1702.1186.  PROVISIONAL COMPANY LICENSE. (a)  The
  department [board] may issue a provisional company license to an
  applicant currently licensed in another jurisdiction who seeks an
  equivalent company 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 commission [board] relating to the practice of
  private investigations or security services contracting; and
               (3)  is sponsored by a person licensed by the
  department [board] under this chapter with whom the provisional
  company license holder will practice during the time the person
  holds a provisional company license.
         (b)  A provisional company license is valid until the date
  the department [board] approves or denies the provisional company
  license holder's application for a company license. The department
  [board] shall issue a company license under this chapter to the
  provisional company license holder if:
               (1)  the provisional company license holder is eligible
  to be licensed under Section 1702.1183; or
               (2)  the provisional company 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 department [board] as
  meeting the academic and experience requirements for a company
  license under this chapter; and
                     (C)  satisfies any other licensing requirements
  under this chapter.
         (c)  The department [board] must approve or deny a
  provisional company license holder's application for a company
  license not later than the 180th day after the date the provisional
  company license is issued. The department [board] may extend the
  180-day period if the results of an examination have not been
  received by the department [board] before the end of that period.
         (d)  The commission [board] may establish a fee for
  provisional company licenses in an amount reasonable and necessary
  to cover the cost of issuing the company license.
         SECTION 5.040.  Section 1702.122, Occupations Code, is
  amended to read as follows:
         Sec. 1702.122.  TEMPORARY CONTINUATION OF COMPANY LICENSE
  HOLDER'S BUSINESS. Under the terms provided by commission [board]
  rule, a company license holder's business may continue for a
  temporary period if the individual on the basis of whose
  qualifications a company license under this chapter has been
  obtained ceases to be connected with the company license holder.
         SECTION 5.041.  Section 1702.123, Occupations Code, is
  amended to read as follows:
         Sec. 1702.123.  INSURANCE; BOND. (a)  A company license
  holder shall maintain on file with the department [board] at all
  times the surety bond and certificate of insurance required by this
  chapter.
         (b)  The commission [board] shall immediately suspend the
  company license of a company license holder who violates Subsection
  (a).
         (c)  The commission [board] may rescind the company license
  suspension if the company license holder provides proof to the
  commission [board] that the bond or the insurance coverage is still
  in effect. The company license holder must provide the proof in a
  form satisfactory to the commission [board] not later than the 10th
  day after the date the company license is suspended.
         (d)  After suspension of the company license, the commission
  [board] may not reinstate the company license until an application,
  in the form prescribed by the commission [board], is filed
  accompanied by a proper bond, insurance certificate, or both. The
  commission [board] may deny the application notwithstanding the
  applicant's compliance with this section:
               (1)  for a reason that would justify suspending,
  revoking, or denying a company license; or
               (2)  if, during the suspension, the applicant performs
  a practice for which a company license is required.
         SECTION 5.042.  Sections 1702.124(a), (b), and (f),
  Occupations Code, are amended to read as follows:
         (a)  An applicant is not eligible for a company license
  unless the applicant provides as part of the application:
               (1)  a certificate of insurance or other documentary
  evidence of a general liability insurance policy countersigned by
  an insurance agent licensed in this state; or
               (2)  a certificate of insurance for surplus lines
  coverage obtained under Chapter 981, Insurance Code, through a
  licensed Texas surplus lines agent resident in this state.
         (b)  The general liability insurance policy must be
  conditioned to pay on behalf of the company license holder damages
  that the company license holder becomes legally obligated to pay
  because of bodily injury, property damage, or personal injury,
  caused by an event involving the principal, or an officer, agent, or
  employee of the principal, in the conduct of any activity or service
  for which the company license holder is licensed under this
  chapter.
         (f)  In addition to the requirements of this section, an
  applicant or company license holder shall provide and maintain a
  certificate of insurance or other documentary evidence of insurance
  sufficient to cover all of the business activities of the applicant
  or company license holder related to private security.
         SECTION 5.043.  Section 1702.125, Occupations Code, is
  amended to read as follows:
         Sec. 1702.125.  BOND REQUIREMENT. A bond executed and filed
  with the department [board] under this chapter remains in effect
  until the surety terminates future liability by providing to the
  department [board] at least 30 days' notice of the intent to
  terminate liability.
         SECTION 5.044.  Section 1702.127, Occupations Code, is
  amended to read as follows:
         Sec. 1702.127.  COMPANY LICENSE HOLDER EMPLOYEES; RECORDS.  
  (a)  A company license holder may be legally responsible for the
  conduct in the company license holder's business of each employee
  of the company license holder while the employee is performing
  assigned duties for the company license holder.
         (b)  A company license holder shall maintain a record
  containing information related to the company license holder's
  employees as required by the commission [board].
         (c)  A company license holder shall maintain for inspection
  by the department at the company license holder's principal place
  of business or branch office two recent color photographs, of a type
  required by the commission [board], of each applicant, individual
  license holder [registrant], commissioned security officer, and
  employee of the company license holder.
         (d)  A company license holder shall maintain records
  required under this chapter at a physical address within this state
  and provide that address to the department [board].
         SECTION 5.045.  Section 1702.128, Occupations Code, is
  amended to read as follows:
         Sec. 1702.128.  POSTING OF COMPANY LICENSE REQUIRED. A
  company license holder shall at all times post[:
               [(1)]  the person's license in a conspicuous place in:
               (1)  the principal place of business of the company
  license holder; and
               (2)  each branch office [license in a conspicuous place
  in each branch office] of the company license holder.
         SECTION 5.046.  Section 1702.129, Occupations Code, is
  amended to read as follows:
         Sec. 1702.129.  NOTICE OF CERTAIN CHANGES; BRANCH OFFICES.
  (a)  A company license holder shall notify the department [board]
  not later than the 14th day after the date of:
               (1)  a change of address for the company license
  holder's principal place of business;
               (2)  a change of a name under which the company license
  holder does business; or
               (3)  a change in the company license holder's officers
  or partners.
         (b)  A company license holder shall notify the department
  [board] 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 5.047.  Section 1702.130(a), Occupations Code, is
  amended to read as follows:
         (a)  A company license holder, or an officer, director,
  partner, [manager,] or employee of a company license holder, may
  not:
               (1)  use a title, an insignia, or an identification
  card, wear a uniform, or make a statement with the intent to give an
  impression that the person is connected with the federal
  government, a state government, or a political subdivision of a
  state government; or
               (2)  use a title, an insignia, or an identification
  card or wear a uniform containing the designation "police."
         SECTION 5.048.  Section 1702.131, Occupations Code, is
  amended to read as follows:
         Sec. 1702.131.  ADVERTISING. An advertisement by a company
  license holder soliciting or advertising business must contain the
  company license holder's company name and address as stated in
  department [board] records.
         SECTION 5.049.  Section 1702.132, Occupations Code, is
  amended to read as follows:
         Sec. 1702.132.  REPORTS TO EMPLOYER OR CLIENT.  (a)  A
  written report submitted to a company license holder's employer or
  client may only be submitted by the company license holder [or
  manager] or a person authorized by a company license holder [or
  manager]. The person submitting the report shall exercise
  diligence in determining whether the information in the report is
  correct.
         (b)  A company license holder or an officer, director,
  partner, [manager,] or employee of a company license holder may not
  knowingly make a false report to the employer or client for whom
  information is obtained.
         SECTION 5.050.  Section 1702.133, Occupations Code, is
  amended to read as follows:
         Sec. 1702.133.  CONFIDENTIALITY; INFORMATION RELATING TO
  CRIMINAL OFFENSE. (a)  A company license holder or an officer,
  director, or partner[, or manager] of a company license holder may
  not disclose to another information obtained by the person for an
  employer or client except:
               (1)  at the direction of the employer or client; or
               (2)  as required by state law or court order.
         (b)  A company license holder or an officer, director, or
  partner[, or manager] of a company license holder shall disclose to
  a law enforcement officer or a district attorney, or that
  individual's representative, information the person obtains that
  relates to a criminal offense. A private investigator who is
  working under the direct supervision of a licensed attorney
  satisfies this requirement by disclosing the information to the
  supervising attorney.
         SECTION 5.051.  The heading to Section 1702.134, Occupations
  Code, is amended to read as follows:
         Sec. 1702.134.  COMPANY LICENSE HOLDER EXEMPTIONS FROM
  CERTAIN LOCAL REGULATIONS.
         SECTION 5.052.  Sections 1702.134(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  A company license holder or an employee of a company
  license holder is not required to obtain an authorization, permit,
  franchise, or license from, pay another fee or franchise tax to, or
  post a bond in a municipality, county, or other political
  subdivision of this state to engage in business or perform a service
  authorized under this chapter.
         (b)  A municipality, county, or other political subdivision
  of this state may not require a payment for the use of municipal,
  county, or other public facilities in connection with a business or
  service provided by a company license holder, except that a
  municipality may impose and collect:
               (1)  a reasonable charge for the use of a central alarm
  installation located in a police office that is owned, operated, or
  monitored by the municipality; and
               (2)  reasonable inspection and reinspection fees in
  connection with a device that causes at least five false alarms in a
  12-month period.
         SECTION 5.053.  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 officer unless the department [board] has issued a
  security officer commission to the individual.
         SECTION 5.054.  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 department [board] on a form provided by the
  department [board].
         SECTION 5.055.  Section 1702.163(a), Occupations Code, is
  amended to read as follows:
         (a)  An applicant employed by a company license holder is not
  eligible for a security officer commission unless the applicant
  submits as part of the application satisfactory evidence that the
  applicant has:
               (1)  completed the basic training course at a school or
  under an instructor approved by the department [board];
               (2)  met each qualification established by this chapter
  and administrative rule;
               (3)  achieved the score required by the department
  [board] on the examination under Section 1702.1685; and
               (4)  demonstrated to the satisfaction of the firearm
  training instructor that the applicant has complied with other
  department [board] standards for minimum marksmanship competency
  with a handgun.
         SECTION 5.056.  Section 1702.165, Occupations Code, is
  amended to read as follows:
         Sec. 1702.165.  ISSUANCE OF SECURITY OFFICER COMMISSION;
  POCKET CARD. (a)  The [board, with the concurrence of the]
  department:
               (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 department
  [board] that identifies the security officer.
         SECTION 5.057.  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 department [board] of the
  transfer of employment on a form prescribed by the department
  [board], accompanied by payment of the employee information update
  fee.
         SECTION 5.058.  Sections 1702.1675(a), (b), (c), (d), (e),
  (f), and (i), Occupations Code, are amended to read as follows:
         (a)  The commission [board] 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 department [board]. To receive
  department [board] approval, a school or an instructor must submit
  an application to the department [board] on a form provided by the
  department [board].
         (c)  The basic training course established under this
  section [approved by the board] must consist of a minimum of 30
  hours.
         (d)  The general security officer training portion of the
  course must include instruction on:
               (1)  [board rules and] applicable rules and state laws;
               (2)  field note taking and report writing; and
               (3)  any other topics of security officer training
  curriculum the department [board] considers necessary.
         (e)  The department [board] shall develop a commissioned
  security officer training manual that contains applicable state
  laws and [board] rules to be used in the instruction and training of
  commissioned security officers.
         (f)  The commission [board] shall adopt rules necessary to
  administer the provisions of this section concerning the training
  requirements of this chapter.
         (i)  The commission [board] 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 5.059.  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 commission [board] 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; and
               (2)  [standards of good moral character; and
               [(3)]  other requirements that relate to the competency
  and reliability of individuals to carry firearms.
         (b)  The commission [board] shall prescribe appropriate
  forms and adopt rules by which evidence is presented that the
  requirements are fulfilled.
         SECTION 5.060.  Sections 1702.1685(b) and (d), Occupations
  Code, are amended to read as follows:
         (b)  Only a department-approved [board-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
  department [board].
         SECTION 5.061.  Section 1702.171, Occupations Code, is
  amended to read as follows:
         Sec. 1702.171.  SECURITY OFFICER COMMISSION RECORDS. The
  commission [board] shall adopt rules for the maintenance of records
  relating to an individual to whom the department [board] has issued
  a security officer commission.
         SECTION 5.062.  The heading to Subchapter H, Chapter 1702,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER H.  EMPLOYMENT OF COMMISSIONED SECURITY OFFICER BY
  CERTAIN PERSONS; [LETTER OF AUTHORITY] REQUIREMENTS
         SECTION 5.063.  Section 1702.181, Occupations Code, is
  amended to read as follows:
         Sec. 1702.181.  NOTICE AND REGISTRATION [LETTER OF
  AUTHORITY] REQUIRED; REGISTRY.  (a)  The security department of a
  private business or a political subdivision may not employ a
  commissioned security officer unless the security department
  provides notice to the department in the form prescribed by the
  commission of:
               (1)  the security department's intent to employ a
  commissioned security officer and register with the department
  under this section;
               (2)  the name, title, and contact information of the
  person serving in the security department as the contact for the
  department; and
               (3)  any change in the information provided in
  Subdivision (1) or (2) [holds a letter of authority].
         (b)  The department shall maintain a registry of security
  departments that provide notice under Subsection (a) and the name,
  title, and contact information of the person serving as contact for
  each security department.
         SECTION 5.064.  The heading to Subchapter I, Chapter 1702,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER I.  PERSONAL PROTECTION OFFICER LICENSE [ENDORSEMENT]
  REQUIREMENTS
         SECTION 5.065.  Section 1702.201, Occupations Code, is
  amended to read as follows:
         Sec. 1702.201.  PERSONAL PROTECTION OFFICER LICENSE
  [ENDORSEMENT] REQUIRED. An individual may not act as a personal
  protection officer unless the individual holds a personal
  protection officer license [endorsement].
         SECTION 5.066.  Section 1702.203, Occupations Code, is
  amended to read as follows:
         Sec. 1702.203.  APPLICATION FOR PERSONAL PROTECTION OFFICER
  LICENSE [ENDORSEMENT]. An applicant for a personal protection
  officer license [endorsement] must submit a written application on
  a form prescribed by the commission [board].
         SECTION 5.067.  Section 1702.204, Occupations Code, is
  amended to read as follows:
         Sec. 1702.204.  PERSONAL PROTECTION OFFICER LICENSE
  [ENDORSEMENT]; QUALIFICATIONS. (a)  An applicant for a personal
  protection officer license [endorsement] 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 department
  [board]; 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 commission [board] by rule shall require an
  applicant for a personal protection officer license [endorsement]
  to complete the Minnesota Multiphasic Personality Inventory test.  
  The department [board] may use the results of the test to evaluate
  the applicant's psychological fitness.
         SECTION 5.068.  Section 1702.205(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission [board] 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 5.069.  Section 1702.206(a), Occupations Code, is
  amended to read as follows:
         (a)  An individual acting as a personal protection officer
  may not carry a 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 license
  [endorsement] 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 license [endorsement] on the
  officer's person while performing the officer's duties or traveling
  as described by Subdivision (1) and presents the commission and
  license [endorsement] on request.
         SECTION 5.070.  The heading to Subchapter J, Chapter 1702,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER J.  LICENSING AND [REGISTRATION AND ENDORSEMENT
  REQUIREMENTS;] DUTIES OF INDIVIDUALS [REGISTRANT AND ENDORSEMENT
  HOLDER]
         SECTION 5.071.  Section 1702.221, Occupations Code, is
  amended to read as follows:
         Sec. 1702.221.  INDIVIDUAL LICENSE [REGISTRATION AND
  ENDORSEMENT] REQUIRED. (a)  To 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 individual license
  [endorsement] under Subsection (b); and
               (2) [(3)]  be employed by a company license holder
  [licensed under this chapter].
         (b)  An individual must obtain the appropriate individual
  license [endorsement] 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;
                     (H) [(J)]  a level 4 personal protection
  instructor;
                     (I) [(K)]  a private investigator; or
                     (J)  [(L)  a private security consultant;
                     [(M)  a security salesperson; or
                     [(N)]  an individual whose duties include
  performing another activity for which an individual license
  [endorsement] is required under Subsection (e); or
               (2)  is an owner who owns at least a 51 percent interest
  in a company license holder [who oversees the security-related
  aspects of the business, officer, partner, or shareholder of a
  license holder].
         (c)  Licensure [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 individual license [an
  endorsement] under this section must obtain an individual license
  [an endorsement] for each service.
         (d)  In addition to the services listed in Subsection (b), a
  person holding a security officer commission must also obtain an
  individual license [an endorsement] for personal protection if the
  individual performs the services described by Section 1702.202.
         (e)  The commission [board] by rule may require a person to
  hold an individual license [an endorsement] for performing any
  other activity expressly regulated by this chapter.
         SECTION 5.072.  Section 1702.2226(b), Occupations Code, is
  amended to read as follows:
         (b)  A person licensed [registered] as an electronic access
  control device installer may not install alarm systems unless the
  person holds an individual license [an endorsement] under this
  chapter as an alarm systems installer.
         SECTION 5.073.  Section 1702.229, Occupations Code, is
  amended to read as follows:
         Sec. 1702.229.  QUALIFICATIONS FOR INDIVIDUAL LICENSE
  [REGISTRATION]. (a)  An applicant for an individual license
  [registration] must meet the qualifications required under Section
  1702.113 for a company license applicant.
         (b)  The commission [In accordance with the requirements of
  Section 1702.0611, the board] by rule may adopt additional
  qualifications for an individual to obtain an individual license
  [be registered] under this subchapter.
         SECTION 5.074.  Section 1702.230, Occupations Code, is
  amended to read as follows:
         Sec. 1702.230.  APPLICATION FOR INDIVIDUAL LICENSE
  [REGISTRATION OR ENDORSEMENT]. (a)  An application for an
  individual license [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 described by Subdivision
  (3) commenced;
               (5)  a letter from the company license holder
  requesting that the applicant be issued an individual license [be
  registered or endorsed];
               (6)  the title of the position occupied by the
  applicant and a description of the applicant's duties;
               (7)  the required fees, including the criminal history
  check fee established under Section 1702.282;
               (8)  fingerprints of the applicant provided in the
  manner prescribed by the department [board]; and
               (9)  any other information, evidence, statement, or
  document required by the department [board].
         (b)  The employer of the applicant shall make a reasonable
  attempt to verify the information required under Subsection (a)(1)
  before the earlier of:
               (1)  the date the application is submitted; or
               (2)  the date the applicant begins to perform the
  duties of employment that require an individual license
  [registration].
         (c)  An applicant must submit an application that
  substantially meets the requirements of this section before
  employment in a capacity for which an individual license
  [registration] is required.
         (d)  For purposes of Subsection (a), an application is not
  considered to be verified until the department [board] has received
  electronic verification from the department or the Federal Bureau
  of Investigation, as applicable, that the applicant has submitted
  the applicant's fingerprints.
         (e)  The department [board] shall make information available
  to the public concerning whether an applicant for an individual
  license [registration or endorsement] has met the requirements
  under this chapter for performing a service for which the
  individual license [registration or endorsement] is required.
         (f)  If information concerning an applicant is not made
  available under Subsection (e) before the 48th hour after the time
  the applicant's fingerprints are submitted in accordance with
  Subsection (a), the applicant may begin performing the duties of
  employment for which the individual license [registration or
  endorsement] is required, other than duties as a commissioned
  security officer, if the employer or its agent:
               (1)  verifies through the department's publicly
  accessible website that the applicant is:
                     (A)  not disqualified for the individual license
  [registration or endorsement] based on the applicant's criminal
  history; and
                     (B)  not required to register as a sex offender
  under Chapter 62, Code of Criminal Procedure; and
               (2)  maintains in the applicant's employee file a copy
  of the search results obtained under Subdivision (1).
         SECTION 5.075.  Section 1702.2305, Occupations Code, is
  amended to read as follows:
         Sec. 1702.2305.  PROVISIONAL INDIVIDUAL LICENSE
  [REGISTRATION]. (a)  The department [board] may issue a
  provisional individual license [registration] to an applicant
  currently licensed [registered] in another jurisdiction who seeks
  an equivalent license [registration] in this state and who:
               (1)  has been licensed [registered] in good standing in
  the field in which the individual license [registration] is sought
  for at least two years in another jurisdiction, including a foreign
  country, that has licensing [registration] requirements
  substantially equivalent to the requirements of this chapter;
               (2)  has passed a national or other examination
  recognized by the commission [board] relating to practice in the
  field in which the individual license [registration] is sought; and
               (3)  is employed by a company license holder [person
  licensed by the board under this chapter] with whom the provisional
  individual license holder [registration holder] will practice
  during the time the person holds a provisional individual license
  [registration].
         (b)  A provisional individual license [registration] is
  valid until the date the department [board] approves or denies the
  provisional individual license [registration] holder's application
  for an individual license [a registration]. The department [board]
  shall issue an individual license [a registration] under this
  chapter to the provisional individual license [registration]
  holder if the provisional individual license [registration] holder
  is eligible to be licensed [registered] under this chapter.
         (c)  The department [board] must approve or deny a
  provisional individual license [registration] holder's application
  for an individual license [a registration] not later than the 180th
  day after the date the provisional individual license
  [registration] is issued. The department [board] may extend the
  180-day period if the results of an examination have not been
  received by the department [board] before the end of that period.
         (d)  The commission [board] may establish a fee for a 
  provisional individual license [registration] in an amount
  reasonable and necessary to cover the cost of issuing the
  individual license [registration].
         SECTION 5.076.  Section 1702.232, Occupations Code, is
  amended to read as follows:
         Sec. 1702.232.  POCKET CARDS. (a)  The department [board]
  shall issue a pocket card for each individual license holder
  [registrant] under this chapter. A pocket card for an owner[,
  officer, partner, or shareholder] of a company license holder shall
  be issued to the company license holder.
         (b)  The department [board] shall determine the size,
  design, and content of the pocket card.
         (c)  The pocket card must:
               (1)  state the name of the individual license holder
  [registrant];
               (2)  contain a color photograph, affixed to the pocket
  card by the department [board] at the time the card is issued, and
  the signature of the individual license holder [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 5.077.  Section 1702.233, Occupations Code, is
  amended to read as follows:
         Sec. 1702.233.  DURATION OF POCKET CARDS. A pocket card
  issued for an individual license holder [a registrant is valid for
  two years and] expires on the date the individual license
  [registration] expires under Section 1702.301(b) [1702.301(d),
  (e), or (f)].
         SECTION 5.078.  Section 1702.234, Occupations Code, is
  amended to read as follows:
         Sec. 1702.234.  [REGISTRATION AND ENDORSEMENT] TRANSFER OF
  INDIVIDUAL LICENSE.  An individual license holder [A registrant]
  may transfer the holder's license [registrant's registration and
  endorsements] from one employer to another employer if, not later
  than the 14th day after the date the individual license holder
  [registrant] begins the new employment, the new employer notifies
  the department [board] of the transfer of employment on a form
  prescribed by the commission [board] accompanied by payment of the
  employee information update fee.
         SECTION 5.079.  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 commission [board] rule.
         SECTION 5.080.  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 department
  [board] shall require an individual who applies for an individual
  license [endorsement] as an electronic access control device
  installer to pass an examination given by the department [board] or
  a person approved by the department [board]. The examination must
  cover material related to access control.
         (b)  The commission [On and after September 1, 2005, the
  board] by rule may allow an electronic access control device
  installer to obtain or renew an individual license [endorsement] by
  fulfilling the requirements of a commission-approved
  [board-approved], industry-based educational training program.
         SECTION 5.081.  Section 1702.239, Occupations Code, is
  amended to read as follows:
         Sec. 1702.239.  TRAINING REQUIREMENTS FOR ALARM SYSTEMS
  INSTALLER [AND SECURITY SALESPERSON]; EXAMINATION. (a)  The
  commission [board] may require that an individual employed as an
  alarm systems installer [or security salesperson] hold a
  certification by a commission-approved [board-approved] training
  program to renew an individual license [endorsement]. The
  commission [board] 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 individual license [endorsement]. 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 commission [board] may require an individual who has
  completed a training program under Subsection (a) to pass an
  examination given by the department [board] or by a person approved
  by the department [board].  The commission [board] 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 individual license
  [endorsement].
         (c)  [An individual who holds a registration on September 30,
  1993, is not required to comply with requirements adopted under
  Subsections (a) and (b) during the time the individual maintains
  the registration with the individual's current license holder.
         [(d)]  If the commission [board] requires certification or
  examination under this section, the commission [board] shall adopt 
  [implement] rules to require that to renew an individual license
  [endorsement], an individual who is employed as an alarm systems
  installer [or a security salesperson] and who has already once
  renewed the individual license [endorsement] must obtain
  continuing education credits related to the line of work for which
  the individual is licensed. If the commission [board] requires the
  continuing education, the chief administrator must approve classes
  offered by nationally recognized organizations, and participants
  in the classes must qualify according to commission [board] rules.
         SECTION 5.082.  Section 1702.240, Occupations Code, is
  amended to read as follows:
         Sec. 1702.240.  [REGISTRATION] EXEMPTIONS FOR UNDERCOVER
  AGENT. (a)  For the purposes of this section, "undercover agent"
  means an individual hired by a person to perform a job in or for that
  person, and while performing that job, to act as an undercover
  agent, an employee, or an independent contractor of a company
  license holder, but supervised by a company license holder.
         (b)  An employee of a company license holder who is employed
  exclusively as an undercover agent is not required to obtain an
  individual license [register with the board].
         SECTION 5.083.  Section 1702.241, Occupations Code, is
  amended to read as follows:
         Sec. 1702.241.  JURISPRUDENCE EXAMINATION. (a)  The
  commission [board] may develop and the department may administer at
  least twice each calendar year a jurisprudence examination to
  determine the knowledge that an applicant for an individual license
  [endorsement] has of this chapter, commission [board] rules, and
  any other applicable laws of this state affecting the applicant's
  activities regulated under this chapter.
         (b)  Before the department [board] may administer a
  jurisprudence examination under this section, the commission
  [board] shall 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 department [board] may design different examinations
  for different types of individual licenses [endorsements].
         SECTION 5.084.  Section 1702.282, Occupations Code, is
  amended to read as follows:
         Sec. 1702.282.  CRIMINAL HISTORY CHECK. (a)  The department
  [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 or[, registration,] security officer commission issued
  under this chapter[, letter of approval, permit, endorsement, or
  certification]. As part of its criminal history check, the
  department [board] may request that the applicant provide certified
  copies of relevant court documents or other records. The failure to
  provide the requested records within a reasonable time as
  determined by the department [board] may result in the application
  being considered incomplete. An applicant is not eligible for a
  license or security officer[, registration,] commission issued
  under this chapter[, 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 or[, registration,] commission[, letter of approval,
  permit, endorsement, or certification]. Except as provided by
  Subsection (d), each applicant shall submit at the time of
  application, including an application for the renewal of a license
  or security officer[, registration,] commission issued under this
  chapter[, letter of approval, permit, endorsement, or
  certification], fingerprints in the manner prescribed by the
  department [board] accompanied by the fee set by the commission
  [board].
         (b)  Before beginning employment as a commissioned security
  officer, the applicant must be approved by the department [board]
  based on the results of the check under Subsection (a). To continue
  employment in a capacity regulated under this chapter other than as
  a commissioned security officer, the applicant must be approved by
  the department [board] based on the results of the check under
  Subsection (a) not later than the 120th day after the date the
  applicant begins employment in that capacity.
         (c)  A license or[, registration,] security officer
  commission[, letter of approval, permit, endorsement, or
  certification] issued by the department [board] is conditional on
  the department's review [board's receipt] of criminal history
  record information.
         (d)  An applicant who is a peace officer is not required to
  submit fingerprints with the applicant's application. On request,
  the law enforcement agency or other entity that employs the peace
  officer or the entity that maintains the peace officer's
  fingerprints shall provide the fingerprints for the peace officer
  to the department [board]. The applicant shall provide sufficient
  information to the department [board] to enable the department
  [board] to obtain the fingerprints under this subsection.
         (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 or security officer[,] commission[,
  endorsement, or certificate of registration] under this chapter.
         SECTION 5.085.  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 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 5.086.  Section 1702.284(a), Occupations Code, is
  amended to read as follows:
         (a)  Information contained in alarm systems records
  maintained by a governmental body that concerns the location of an
  alarm system, the name of the occupant of an alarm system location,
  or the type of alarm system used is confidential and may be
  disclosed only to the department [board], to the alarm company to
  which the confidential records relate, or as otherwise required by
  state law or court order.
         SECTION 5.087.  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 company license holder; or
               (2)  has a license or security officer commission [is
  licensed, registered, endorsed, or commissioned] under this
  chapter.
         SECTION 5.088.  Sections 1702.288(a), (d), and (f),
  Occupations Code, are amended to read as follows:
         (a)  The commission [board] shall adopt rules in accordance
  with this section that require a company license holder acting as an
  alarm systems company under this chapter to inform each of the
  license holder's clients that the client is entitled to receive a
  written contract for alarm system services that contains the
  client's fee arrangement and other relevant information about
  services to be rendered.
         (d)  The rules shall require that, not later than the seventh
  day after the date of entering into a contract for services
  regulated by the department [board] with another alarm systems
  company or alarm systems monitor, an alarm systems company shall:
               (1)  notify the recipient of those services of the
  name, address, and telephone number and individual to contact at
  the company that purchased the contract;
               (2)  notify the recipient of services at the time the
  contract is negotiated that another licensed company may provide
  any of the services requested by subcontracting or outsourcing
  those services; and
               (3)  if any of the services are subcontracted or
  outsourced to a licensed third party, notify the recipient of
  services, by mail, of the name, address, phone number, and license
  number of the company providing those services.
         (f)  A company license holder acting as an alarm systems
  company does not have to provide the notice required under
  Subsection (d) if the contact information, including the address
  and the telephone numbers for the alarm systems company, has not
  changed.
         SECTION 5.089.  Section 1702.289, Occupations Code, is
  amended to read as follows:
         Sec. 1702.289.  INSPECTIONS. (a)  An employee or agent of
  the department [or board, as applicable,] who enters the place of
  business of a person regulated under this chapter for the purpose of
  conducting an inspection or audit must:
               (1)  notify the manager or owner of the business of the
  presence of the person conducting the inspection or audit; and
               (2)  present the manager or owner of the business with
  credentials that identify the person conducting the inspection or
  audit as an employee or agent of the department [or board].
         (b)  This section does not prohibit the department [or board]
  from conducting an undercover investigation or covert audit in
  order to determine compliance with this chapter or a rule adopted
  under this chapter.
         SECTION 5.090.  Sections 1702.301(b), (c), and (h),
  Occupations Code, are amended to read as follows:
         (b)  A company license, individual license, and security
  officer commission expire on the dates determined by the commission
  under Section 411.511, Government Code, but not later than [expires
  on] the second anniversary of the date the license or commission is
  issued.
         (c)  A personal protection officer license [endorsement]
  expires on the date determined by the commission under Section
  411.511, Government Code, but not later than [on] the expiration
  date of the security officer commission under which the license
  [individual's endorsement] is issued.
         (h)  A license[, registration, or endorsement] issued under
  this chapter, other than one specified in this section, expires on
  the date determined by the commission under Section 411.511,
  Government Code, but not later than the second anniversary of the
  date the license is issued [specified by this chapter or by board
  rule].
         SECTION 5.091.  Sections 1702.302(a), (b), (c), and (e),
  Occupations Code, are amended to read as follows:
         (a)  A person who is otherwise eligible to renew a license
  may renew an unexpired license by paying the required renewal fee to
  the department [board] 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 department [board] 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
  department [board] a renewal fee that is equal to two times the
  normally required renewal fee.
         (e)  Not later than the 30th day before the date a person's
  license is scheduled to expire, the department [board] shall send
  written notice of the impending expiration to the person at the
  person's last known address according to the department's [board's]
  records.
         SECTION 5.092.  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 department [board] a fee that is equal to
  two times the normally required renewal fee for the license.
         SECTION 5.093.  Sections 1702.308(b) and (c), Occupations
  Code, are amended to read as follows:
         (b)  The department [board] shall recognize, prepare, or
  administer continuing education programs for company license
  holders, commissioned security officers, and individual license
  [endorsement] holders. The commission [board] shall set the
  minimum number of hours that must be completed and the types of
  programs that may be offered.
         (c)  A company license holder, commissioned security
  officer, or individual license [endorsement] holder must
  participate in the programs to the extent required by the
  commission [board] to keep the person's license or[,] commission[,
  or endorsement]. A company license holder, commissioned security
  officer, or individual license [endorsement] holder shall submit
  evidence of compliance with the commission's [board's] continuing
  education requirements in a manner prescribed by the department
  [board].
         SECTION 5.094.  Section 1702.309(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission [board] by rule shall develop a
  continuing education course required for renewal of a security
  officer commission. Only a department-approved [board-approved]
  instructor may administer the continuing education course. The
  course must include at least six hours of instruction determined by
  the department [chief administrator of the board].
         SECTION 5.095.  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 department
  [board] for the department [board] to issue a commission to the
  political subdivision's employees with those duties.
         (c)  The department [board] may not charge a fee for issuing
  a commission to an officer under Subsection (b). The department
  [board] shall issue to the officer a pocket card designating the
  political subdivision that employs the officer.
         (e)  The department [board] may approve a security officer
  training program conducted by the political subdivision in
  accordance with Sections 1702.1675 and 1702.168.
         SECTION 5.096.  Sections 1702.323(c) and (c-1), Occupations
  Code, are amended to read as follows:
         (c)  The security department of a private business may not
  hire or employ an individual to perform a duty described by Section
  1702.222 if the individual has been convicted of a crime that would
  otherwise preclude the individual from being licensed [registered]
  under this chapter. The private business shall maintain the
  individual's criminal history record on file at the business and
  shall make the record available for inspection by the department
  [Department of Public Safety].
         (c-1)  Although the security department of a private
  business that hires or employs an individual as a private security
  officer to possess a firearm in the course and scope of the
  individual's duties is required to apply for a security officer
  commission for the individual under this chapter, the security
  department of a private business is not required to apply [to the
  board] for any license under this chapter.
         SECTION 5.097.  Section 1702.331(b), Occupations Code, is
  amended to read as follows:
         (b)  This chapter does not apply to:
               (1)  an alarm systems company that sells, installs,
  services, monitors, or responds to only personal emergency response
  systems;
               (2)  an alarm systems installer who installs,
  maintains, or repairs only personal emergency response systems; and
               (3)  [a manager or branch office manager of an alarm
  systems company described by Subdivision (1);
               [(4)     a security salesperson who is employed by an
  alarm systems company described by Subdivision (1) to sell services
  offered by the company; and
               [(5)]  an owner[, officer, partner, or shareholder] of
  an alarm systems company described by Subdivision (1).
         SECTION 5.098.  Sections 1702.332(c) and (d), Occupations
  Code, are amended to read as follows:
         (c)  To qualify for the exemption provided by Subsection (b),
  a telematics service provider shall[:
               [(1)]  establish business practices and procedures
  that are at least as stringent as the guidelines established by the
  Association of Public Safety Communications Officials
  International regarding the communication of information from
  telematics service providers to public safety agencies[; and
               [(2)  pay an annual fee of $2,500 to the department].
         (d)  The commission [department] may adopt rules necessary
  to carry out the purposes of this section, including rules to
  determine whether a telematics service provider is complying with
  Subsection (c).
         SECTION 5.099.  Section 1702.361, Occupations Code, is
  amended to read as follows:
         Sec. 1702.361.  DENIAL AND DISCIPLINARY ACTIONS; GROUNDS.  
  (a)  The commission [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 commission [department] shall take disciplinary
  action described by Subsection (a) on proof:
               (1)  that the applicant, license holder, [manager or]
  majority owner of a 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[,
  registration, or endorsement under Section 1702.113,] or a security
  officer 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;
                     (E)  failed to pay in full an administrative
  penalty assessed under Subchapter R, Chapter 411, Government Code 
  [Q], for which the commission [board] has issued a final order; or
                     (F)  performed any service for which an individual
  license [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
  individual license [registration] without informing the department
  [board] of the individual's employment with the company within a
  reasonable period; or
                     [(G)     failed to qualify a new manager within the
  time required by board rule following the termination of a manager;
  or]
               (2)  that the company license holder employing an
  individual license holder [of a registrant] or commissioned
  security officer has submitted to the department sufficient
  evidence that the individual license holder [registrant] or
  commissioned security officer:
                     (A)  engaged in fraud or deceit while employed by
  the company license holder; or
                     (B)  committed theft while performing work as an
  individual license holder [a registrant] or commissioned security
  officer.
         (c)  The commission [department] may place on probation a
  person whose license is suspended. If a person's suspension of a
  license is probated, the commission [department] may require the
  person:
               (1)  to report regularly to the department on matters
  that are the basis of the suspension;
               (2)  to limit practice to the areas prescribed by the
  commission [department]; or
               (3)  to continue or review professional education until
  the person attains a degree of skill satisfactory to the commission
  [department] in those areas that are the basis of the probation.
         (d)  The commission [department] may revoke a license[,
  certificate, registration, endorsement,] or security officer
  commission if the person holding that credential under this chapter
  submits payment of a fee or penalty that is returned for
  insufficient funds and the person has received notice and an
  opportunity to provide payment in full.
         SECTION 5.100.  Section 1702.363, Occupations Code, is
  amended to read as follows:
         Sec. 1702.363.  APPLICATION OF ADMINISTRATIVE PROCEDURE
  ACT. Except as provided by Section [Sections 1702.3615(b) and]
  1702.364, a person regulated under this chapter against whom the
  commission [board] 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 5.101.  Sections 1702.364(a), (b), (c), (d), (e),
  and (f), 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, or a rule adopted
  under Section 1702.004(b), the commission [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.
         (b)  To initiate a proceeding to take action under Subsection
  (a), the department must serve notice to the person.  The notice
  must:
               (1)  inform the person of the person's right to a
  [preliminary] hearing before the department or the department's
  designee;
               (2)  state the basis for the summary action; and
               (3)  be personally served on the person or the person's
  authorized representative, or sent to the person by certified or
  registered mail, return receipt requested, to the person's mailing
  address as it appears in the department's records.
         (c)  The action is effective at the time notice is served.  
  The person shall immediately surrender to the department any
  [certificate of registration,] security officer commission, pocket
  card, or other form of identification issued by the department.
         (d)  At a [preliminary] hearing under this section, 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.
         (e)  Chapter 2001, Government Code, applies [does not apply]
  to a proceeding under this section for the summary denial of an
  application for or the summary suspension or revocation of a
  license or security officer commission [the department's initial
  action under this section or to a preliminary hearing before the
  department under this section].
         (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 license or [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.
         SECTION 5.102.  Section 1702.365, Occupations Code, is
  amended to read as follows:
         Sec. 1702.365.  ABDUCTION OF CHILD. The commission [board]
  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 5.103.  Sections 1702.367(a), (c), (d), and (e),
  Occupations Code, are amended to read as follows:
         (a)  For an investigation conducted under this chapter, if
  necessary to enforce this chapter or the commission [board's] rules
  adopted under this chapter, the department may issue an
  administrative subpoena to any person in this state compelling:
               (1)  the production of information or documents; or
               (2)  the attendance and testimony of a witness.
         (c)  A person required to testify or to produce a record or
  document on any matter properly under inquiry by the department
  [board] 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 department [board], the
  department [board] 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 department [board] may
  take statements under oath in an investigation of a matter covered
  by this chapter.
         SECTION 5.104.  Section 1702.368, Occupations Code, is
  amended to read as follows:
         Sec. 1702.368.  NOTIFICATION OF CONVICTION FOR CERTAIN
  OFFENSES. The department shall notify the [board 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 5.105.  Section 1702.372, Occupations Code, is
  amended to read as follows:
         Sec. 1702.372.  RECUSAL OF COMMISSION [BOARD] MEMBER.
  (a)  A commission [board] member who participated in the
  investigation of a complaint of a violation of this chapter or in
  informal settlement negotiations regarding the complaint:
               (1)  may not vote on the matter at a commission [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 5.106.  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[, registration, endorsement,] or
  security officer commission under this chapter knowing that the
  person does not hold the required license[, registration,
  endorsement,] 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 5.107.  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,] or commission under this chapter
  knowing that the person does not hold the required license[,
  registration, endorsement,] or commission or who otherwise, at the
  time of contract or employment, is in violation of this chapter.
         SECTION 5.108.  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 5.109.  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 department [board] the
  person's [registration,] commission, pocket card, or other
  identification issued to the person by the department under this
  chapter [board] on notification of a summary suspension or summary
  denial under Section 1702.364.
         SECTION 5.110.  Section 1702.3875(a), Occupations Code, is
  amended to read as follows:
         (a)  A person commits an offense if the person:
               (1)  impersonates a commissioned or noncommissioned
  security officer with the intent to induce another to submit to the
  person's pretended authority or to rely on the person's pretended
  acts of a security officer; or
               (2)  knowingly purports to exercise any function that
  requires licensure [registration] as a noncommissioned security
  officer or a security officer commission.
         SECTION 5.111.  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 of
  insurance, or commission that the person is required to hold under
  this chapter.
         SECTION 5.112.  Section 411.042(b), Government Code, is
  amended to read as follows:
         (b)  The bureau of identification and records shall:
               (1)  procure and file for record photographs, pictures,
  descriptions, fingerprints, measurements, and other pertinent
  information of all persons arrested for or charged with a criminal
  offense or convicted of a criminal offense, regardless of whether
  the conviction is probated;
               (2)  collect information concerning the number and
  nature of offenses reported or known to have been committed in the
  state and the legal steps taken in connection with the offenses, and
  other information useful in the study of crime and the
  administration of justice, including information that enables the
  bureau to create a statistical breakdown of:
                     (A)  offenses in which family violence was
  involved;
                     (B)  offenses under Sections 22.011 and 22.021,
  Penal Code; and
                     (C)  offenses under Sections 20A.02, 43.02(a),
  43.02(b), 43.03, and 43.05, Penal Code;
               (3)  make ballistic tests of bullets and firearms and
  chemical analyses of bloodstains, cloth, materials, and other
  substances for law enforcement officers of the state;
               (4)  cooperate with identification and crime records
  bureaus in other states and the United States Department of
  Justice;
               (5)  maintain a list of all previous background checks
  for applicants for any position regulated under Chapter 1702,
  Occupations Code, who have undergone a criminal history background
  check as required by that chapter [under Section 411.119], if the
  check indicates a Class B misdemeanor or equivalent offense or a
  greater offense;
               (6)  collect information concerning the number and
  nature of protective orders and magistrate's orders of emergency
  protection and all other pertinent information about all persons
  subject to active orders, including pertinent information about
  persons subject to conditions of bond imposed for the protection of
  the victim in any family violence, sexual assault or abuse,
  stalking, or trafficking case. Information in the law enforcement
  information system relating to an active order shall include:
                     (A)  the name, sex, race, date of birth, personal
  descriptors, address, and county of residence of the person to whom
  the order is directed;
                     (B)  any known identifying number of the person to
  whom the order is directed, including the person's social security
  number or driver's license number;
                     (C)  the name and county of residence of the
  person protected by the order;
                     (D)  the residence address and place of employment
  or business of the person protected by the order, unless that
  information is excluded from the order under Article 17.292(e),
  Code of Criminal Procedure;
                     (E)  the child-care facility or school where a
  child protected by the order normally resides or which the child
  normally attends, unless that information is excluded from the
  order under Article 17.292(e), Code of Criminal Procedure;
                     (F)  the relationship or former relationship
  between the person who is protected by the order and the person to
  whom the order is directed;
                     (G)  the conditions of bond imposed on the person
  to whom the order is directed, if any, for the protection of a
  victim in any family violence, sexual assault or abuse, stalking,
  or trafficking case;
                     (H)  any minimum distance the person subject to
  the order is required to maintain from the protected places or
  persons; and
                     (I)  the date the order expires;
               (7)  grant access to criminal history record
  information in the manner authorized under Subchapter F;
               (8)  collect and disseminate information regarding
  offenders with mental impairments in compliance with Chapter 614,
  Health and Safety Code; and
               (9)  record data and maintain a state database for a
  computerized criminal history record system and computerized
  juvenile justice information system that serves:
                     (A)  as the record creation point for criminal
  history record information and juvenile justice information
  maintained by the state; and
                     (B)  as the control terminal for the entry of
  records, in accordance with federal law and regulations, federal
  executive orders, and federal policy, into the federal database
  maintained by the Federal Bureau of Investigation.
         SECTION 5.113.  (a)  Section 411.119, Government Code, is
  repealed.
         (b)  The following provisions of the Occupations Code are
  repealed:
               (1)  Section 1702.002(1-b);
               (2)  Section 1702.002(3);
               (3)  Section 1702.002(6-b);
               (4)  Section 1702.002(11);
               (5)  Section 1702.002(12);
               (6)  Section 1702.002(13);
               (7)  Section 1702.002(14);
               (8)  Section 1702.002(19);
               (9)  Section 1702.002(20);
               (10)  Section 1702.027(c);
               (11)  Section 1702.028;
               (12)  Section 1702.030;
               (13)  Section 1702.043;
               (14)  Section 1702.047;
               (15)  Section 1702.0611;
               (16)  Section 1702.0612;
               (17)  Section 1702.066;
               (18)  Section 1702.081;
               (19)  Section 1702.082;
               (20)  Section 1702.083;
               (21)  Section 1702.1045;
               (22)  Section 1702.109;
               (23)  Section 1702.111;
               (24)  Section 1702.113(d);
               (25)  Section 1702.116;
               (26)  Section 1702.119;
               (27)  Section 1702.120;
               (28)  Section 1702.121;
               (29)  Section 1702.183;
               (30)  Section 1702.225;
               (31)  Section 1702.227;
               (32)  Section 1702.228;
               (33)  Sections 1702.301(a), (d), (e), (f), and (g);
               (34)  Section 1702.304;
               (35)  Section 1702.307;
               (36)  Section 1702.3615;
               (37)  Section 1702.362;
               (38)  Sections 1702.364(g), (h), and (i);
               (39)  Section 1702.371;
               (40)  Section 1702.385; and
               (41)  Subchapter Q, Chapter 1702.
         SECTION 5.114.  (a)  On September 1, 2019, the terms of the
  members serving on the Texas Private Security Board expire and the
  Texas Private Security Board is abolished.
         (b)  As soon as practicable after the effective date of this
  Act, the Public Safety Commission shall appoint members to the
  Texas Private Security Advisory Committee in accordance with
  Section 1702.021, Occupations Code, as amended by this Act.  A board
  member whose term expired under Subsection (a) of this section is
  eligible for reappointment to the advisory committee.
         (c)  The members of the Texas Private Security Board whose
  terms expire under Subsection (a) of this section shall continue to
  provide advice to the Department of Public Safety until a majority
  of the members of the Texas Private Security Advisory Committee are
  appointed under Subsection (b) of this section and qualified.
         SECTION 5.115.  (a)  In this section:
               (1)  "Commission" means the Public Safety Commission.
               (2)  "Department" means the Department of Public
  Safety.
               (3)  "Former board" means the Texas Private Security
  Board.
         (b)  On September 1, 2019:
               (1)  all functions and activities performed by the
  former board immediately before that date are transferred to the
  department;
               (2)  all rules, fees, policies, procedures, decisions,
  and forms adopted by the former board are continued in effect as
  rules, fees, policies, procedures, decisions, and forms of the
  commission or the department, as applicable, and remain in effect
  until amended or replaced by the commission or department;
               (3)  a complaint, investigation, contested case, or
  other proceeding before the former board that is pending on
  September 1, 2019, is transferred without change in status to the
  department or the commission, as appropriate;
               (4)  all money, contracts, leases, property, and
  obligations of the former board are transferred to the department;
               (5)  all property in the custody of the former board is
  transferred to the department; and
               (6)  the unexpended and unobligated balance of any
  money appropriated by the legislature for the former board is
  transferred to the department.
         (c)  The former board shall provide the department with
  access to any systems or information necessary for the department
  to accept the program transferred under this Act.
         (d)  A license, certificate, or other authorization issued
  by the former board is continued in effect as a license,
  certificate, or other authorization of the department.
         SECTION 5.116.  On September 1, 2019, the following expire:
               (1)  any license, registration, endorsement, or other
  authorization required to operate as a guard dog company or trainer
  of a dog used to protect persons or property or to conduct
  investigations, as described by Chapter 1702, Occupations Code, as
  that chapter existed immediately before the effective date of this
  Act; and
               (2)  any license, registration, endorsement, or other
  authorization required to operate as a security salesperson,
  private security consultant, or private security consulting
  company, as described by Chapter 1702, Occupations Code, as that
  chapter existed immediately before the effective date of this Act.
         SECTION 5.117.  As soon as practicable after the effective
  date of this Act, the Public Safety Commission shall adopt rules
  necessary to implement the changes in law made by this Act to
  Chapter 1702, Occupations Code.
         SECTION 5.118.  The changes in law made by this Act amending
  Chapter 1702, Occupations Code, do not affect the validity of a
  disciplinary action or other proceeding that was initiated before
  the effective date of this Act and that is pending before a court or
  other governmental entity on the effective date of this Act.
         SECTION 5.119.  (a)  A violation of Chapter 1702,
  Occupations Code, that is repealed or amended by this Act is
  governed by the law in effect when the violation was committed, and
  the former law is continued in effect for that purpose.
         (b)  For purposes of this section, a violation was committed
  before the effective date of this Act if any element of the
  violation occurred before that date.
  ARTICLE 6.  CONDITIONAL TRANSFER OF DRIVER'S LICENSE PROGRAMS FROM
  DEPARTMENT OF PUBLIC SAFETY TO DEPARTMENT OF MOTOR VEHICLES
         SECTION 6.001.  Sections 521.001(a)(1-a) and (2),
  Transportation Code, are amended to read as follows:
               (1-a)  "Department" means the Texas Department of Motor
  Vehicles [Public Safety].
               (2)  "Director" means the executive [public safety]
  director of the department.
         SECTION 6.002.  Section 521.001(c), Transportation Code, is
  amended to read as follows:
         (c)  The department by rule may define types of vehicles that
  are "motorcycles" for the purposes of this chapter, in addition to
  those defined under Subsection (a)(6-a), and[.   The Texas
  Department of Motor Vehicles by rule may define the types of
  vehicles that are "motorcycles"] for the purposes of Chapters 501,
  502, and 503.  This subsection applies only to vehicles
  manufactured by a manufacturer licensed under Chapter 2301,
  Occupations Code.
         SECTION 6.003.  Subchapter A, Chapter 521, Transportation
  Code, is amended by adding Section 521.0015 to read as follows:
         Sec. 521.0015.  STATUTORY REFERENCES. A statutory reference
  to the Department of Public Safety means the Texas Department of
  Motor Vehicles if the statutory reference concerns:
               (1)  the administration of the programs established by
  this chapter, Chapter 522, and other law that license a person to
  operate a motor vehicle, as defined by Section 501.002, or a
  commercial motor vehicle, as defined by Section 522.003, in this
  state; or
               (2)  the administration of Chapter 521A.
         SECTION 6.004.  (a)  In this section:
               (1)  "Former administrator" means the Department of
  Public Safety.
               (2)  "Licensing program" means:
                     (A)  the programs established by Chapters 521 and
  522, Transportation Code, and other law, that license a person to
  operate in this state a motor vehicle, as defined by Section
  501.002, Transportation Code, or a commercial motor vehicle, as
  defined by Section 522.003, Transportation Code; and
                     (B)  the program to issue election identification
  certificates under Chapter 521A, Transportation Code.
               (3)  "New administrator" means the Texas Department of
  Motor Vehicles.
               (4)  "Work group" means the work group established
  under Subsection (b) of this section.
         (b)  As soon as practicable after the effective date of this
  section, the former administrator and the new administrator shall
  establish a work group to plan the transfer of the licensing program
  from the former administrator to the new administrator.
         (c)  The work group shall:
               (1)  adopt a transition plan to provide for the orderly
  transfer of powers, duties, functions, programs, and activities
  related to the licensing program, including:
                     (A)  a plan that ensures the transfer of the
  licensing program will be completed on or before August 31, 2021;
  and
                     (B)  completion dates for substantial phases of
  the licensing program's transfer;
               (2)  implement the transition plan described by
  Subdivision (1) of this subsection; and
               (3)  provide a quarterly report of the work group's
  progress in developing and implementing the transition plan
  described by Subdivision (1) of this subsection to:
                     (A)  the presiding officer of each house of the
  legislature;
                     (B)  the governor; and
                     (C)  the Sunset Advisory Commission.
         (d) To prepare for the transfer, the former administrator
  shall provide the new administrator with access to any systems,
  information, property, records, or personnel necessary for the new
  administrator to administer the licensing program transferred
  under this article.
         (e) As soon as practicable after the effective date of this
  section:
               (1)  the new administrator shall study the most
  effective use of available state and county resources, including
  personnel, property, and resources potentially available through
  the adoption of intergovernmental agreements, to administer the
  licensing program, prioritizing:
                     (A)  administrative efficiency and cost savings;
  and
                     (B)  accessibility of the licensing program for
  the citizens of this state, including citizens residing in rural
  areas of this state; and
               (2)  the former administrator shall assist in the study
  described by Subdivision (1) of this subsection as requested by the
  new administrator.
         (f)  On September 1, 2021:
               (1)  all licensing program functions and activities
  performed by the former administrator immediately before that date
  are transferred to the new administrator;
               (2)  all licensing program rules, fees, policies,
  procedures, decisions, and forms adopted by the former
  administrator are continued in effect as rules, fees, policies,
  procedures, decisions, and forms of the new administrator and
  remain in effect until amended or replaced by the new
  administrator;
               (3)  a licensing program complaint, investigation,
  contested case, or other proceeding before the former administrator
  that is pending on September 1, 2021, is transferred without change
  in status to the new administrator;
               (4)  all licensing program money, contracts, leases,
  property, and obligations of the former administrator are
  transferred to the new administrator;
               (5)  all licensing program property in the custody of
  the former administrator is transferred to the new administrator;
  and
               (6)  the unexpended and unobligated balance of any
  money appropriated by the legislature to the former administrator
  for the purpose of administering the licensing program is
  transferred to the new administrator.
         (g)  On September 1, 2021, a license, certificate,
  endorsement, or other form of authorization issued by the former
  administrator and related to the licensing program is continued in
  effect as a license, certificate, endorsement, or other form of
  authorization of the new administrator.
         (h)  On September 1, 2021, all full-time equivalent employee
  positions at the former administrator that primarily concern the
  administration or enforcement of the licensing program become
  positions at the new administrator.
         SECTION 6.005.  (a)  In this section, "driver's license
  program" means:
               (1)  the programs established by Chapters 521 and 522,
  Transportation Code, and other law, that license a person to
  operate in this state a motor vehicle, as defined by Section
  501.002, Transportation Code, or a commercial motor vehicle, as
  defined by Section 522.003, Transportation Code; and
               (2)  the program to issue election identification
  certificates under Chapter 521A, Transportation Code.
         (b)  The Department of Public Safety shall enter into a
  contract with an independent, third-party contractor designated by
  the comptroller of public accounts to conduct a feasibility study
  that examines and makes recommendations on the management and
  operating structure of the driver's license program and the
  opportunities and challenges of transferring the driver's license
  program.
         (c)  Not later than September 1, 2020, the contractor
  described by Subsection (b) of this section shall submit a report on
  the study conducted under that subsection to the legislature, the
  governor, the Sunset Advisory Commission, the Department of Public
  Safety, and the Texas Department of Motor Vehicles.
         (d)  In conducting the study required by Subsection (b) of
  this section, the Department of Public Safety, the Texas Department
  of Motor Vehicles, or the independent, third-party contractor
  described by that subsection may not disclose any personal
  information obtained in conducting the study. In this subsection,
  "personal information" means information that identifies a holder
  of a driver's license or election identification certificate,
  including a name, address, date of birth, social security number,
  telephone number, physical characteristic, or similar identifier.
         SECTION 6.006.  (a)  Subject to Subsection (b) of this
  section, this article takes effect immediately if this Act receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  article takes effect September 1, 2019.
         (b)  Sections 6.001, 6.002, 6.003, and 6.004 of this article
  take effect only if the report required by Section 6.005 of this
  article is not submitted within the period prescribed by that
  section.
  ARTICLE 7.  EXPIRATION DATES OF DRIVER'S LICENSES
         SECTION 7.001.  Section 521.271(a), Transportation Code, is
  amended to read as follows:
         (a)  Each original driver's license, provisional license,
  learner license, or occupational driver's license issued to an
  applicant who is a citizen, national, or legal permanent resident
  of the United States or a refugee or asylee lawfully admitted into
  the United States expires as follows:
               (1)  except as provided by Section 521.2711, a driver's
  license expires on the first birthday of the license holder
  occurring after the eighth [sixth] anniversary of the date of the
  application;
               (2)  a provisional license expires on the 18th birthday
  of the license holder;
               (3)  a learner license expires on the 18th birthday of
  the license holder;
               (4)  an occupational driver's license expires on the
  first anniversary of the court order granting the license; and
               (5)  unless an earlier date is otherwise provided, a
  driver's license issued to a person whose residence or domicile is a
  correctional facility or a parole facility expires on the first
  birthday of the license holder occurring after the first
  anniversary of the date of issuance.
         SECTION 7.002.  Section 521.421(a), Transportation Code, is
  amended to read as follows:
         (a)  The fee for issuance or renewal of a license not
  otherwise provided for by this section is $32 [$24].
         SECTION 7.003.  The changes in law made by this Act to
  Sections 521.271 and 521.421, Transportation Code, apply only to a
  driver's license issued or renewed on or after June 1, 2020. A
  driver's license issued or renewed before June 1, 2020, is governed
  by the law in effect immediately before the effective date of this
  Act, and the former law is continued in effect for that purpose.
  ARTICLE 8.  MOTORCYCLE AND OFF-HIGHWAY VEHICLE OPERATOR TRAINING
  PROGRAMS
         SECTION 8.001.  Chapter 662, Transportation Code, is amended
  by adding Section 662.0005 to read as follows:
         Sec. 662.0005.  DEFINITIONS. In this chapter: 
               (1)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (2)  "Department" means the Texas Department of
  Licensing and Regulation.
               (3)  "Institution of higher education" has the meaning
  assigned by Section 61.003, Education Code.
               (4)  "Instructor" means an individual who holds a
  license issued under this chapter that entitles the individual to
  provide instruction on motorcycle operation and safety as an
  employee of or under contract with a motorcycle school.
               (5)  "Motorcycle school" means a person who holds a
  license issued under this chapter that entitles the person to offer
  and conduct courses on motorcycle operation and safety for
  consideration as part of the motorcycle operator training and
  safety program.
         SECTION 8.002.  Section 662.001, Transportation Code, is
  amended to read as follows:
         Sec. 662.001.  ADMINISTRATION OF PROGRAM [DESIGNATED STATE
  AGENCY]. The department [governor] shall [designate a state agency
  to establish and] administer a motorcycle operator training and
  safety program and enforce the laws governing the program.
         SECTION 8.003.  The heading to Section 662.002,
  Transportation Code, is amended to read as follows:
         Sec. 662.002.  PURPOSE OF PROGRAM[; CURRICULUM].
         SECTION 8.004.  Chapter 662, Transportation Code, is amended
  by adding Sections 662.0033, 662.0035, and 662.0037 to read as
  follows:
         Sec. 662.0033.  MINIMUM CURRICULUM STANDARDS. (a)  The
  commission by rule shall establish minimum curriculum standards for
  courses provided under the motorcycle operator training and safety
  program.
         (b)  The department shall approve all courses that meet the
  curriculum standards established under Subsection (a).
         (c)  In establishing the minimum curriculum standards for
  entry-level courses, the commission shall consider the standards
  for motorcycle operator training and safety courses adopted by the
  National Highway Traffic Safety Administration.
         Sec. 662.0035.  FEES. The commission may set fees in amounts
  reasonable and necessary to cover the costs of administering this
  chapter, including fees for:
               (1)  the issuance and renewal of a motorcycle school
  license and instructor license; and
               (2)  courses provided under the motorcycle operator
  training and safety program.
         Sec. 662.0037.  MOTORCYCLE SAFETY ADVISORY BOARD. (a)  The
  commission shall establish an advisory board to advise the
  department on matters related to the motorcycle operator training
  and safety program established under this chapter.
         (b)  The advisory board must consist of nine members
  appointed by the presiding officer of the commission, on approval
  of the commission, as follows:
               (1)  three members:
                     (A)  each of whom must be a licensed instructor or
  represent a licensed motorcycle school; and
                     (B)  who must collectively represent the
  diversity in size and type of the motorcycle schools licensed under
  this chapter; 
               (2)  one member who represents the motorcycle dealer
  retail industry;
               (3)  one representative of a law enforcement agency;
               (4)  one representative of the Texas A&M Transportation
  Institute;
               (5)  one representative of the Texas A&M Engineering
  Extension Service; and
               (6)  two public members who hold a valid Class M
  driver's license issued under Chapter 521.
         (c)  The advisory board members serve staggered six-year
  terms.  The terms of three members expire September 1 of each
  odd-numbered year.
         (d)  If a vacancy occurs on the advisory board, the presiding
  officer of the commission, on approval of the commission, shall
  appoint a replacement who meets the qualifications for the vacant
  position to serve for the remainder of the term.
         (e)  The presiding officer of the commission, on approval of
  the commission, shall designate a member of the advisory board to
  serve as the presiding officer of the advisory board for a one-year
  term.  The presiding officer of the advisory board may vote on any
  matter before the advisory board.
         (f)  The advisory board shall meet at the call of the
  executive director or the presiding officer of the commission.
         (g)  An advisory board member may not receive compensation
  for service on the advisory board but is entitled to reimbursement
  for actual and necessary expenses incurred in performing the
  functions as a member of the advisory board, subject to the General
  Appropriations Act.
         (h)  Chapter 2110, Government Code, does not apply to the
  advisory board.
         (i)  The department may call a joint meeting of the advisory
  board and the advisory committee established under Section
  1001.058, Education Code, for the committees to collaborate on
  matters determined by the department.
         SECTION 8.005.  Section 662.005, Transportation Code, is
  amended to read as follows:
         Sec. 662.005.  CONTRACTS.  (a)  The department [designated
  state agency] may [license or] contract with qualified persons,
  including institutions of higher education, to:
               (1)  offer and conduct motorcycle operator training and
  safety courses under the [administer or operate the motorcycle
  operator training and safety] program; or
               (2)  research motorcycle safety in this state.
         (b)  The department shall consult with the motorcycle safety
  advisory board regarding any proposed contract under this section.
         SECTION 8.006.  Section 662.006(a), Transportation Code, is
  amended to read as follows:
         (a)  A person may not offer or conduct training in motorcycle
  operation for consideration unless the person:
               (1)  is licensed as a motorcycle school under this
  chapter;
               (2)  offers and conducts training in accordance with a
  motorcycle operator training curriculum approved by the
  department; and
               (3)  employs or contracts with an instructor licensed
  under this chapter to conduct the training [by or contracts with the
  designated state agency].
         SECTION 8.007.  Chapter 662, Transportation Code, is amended
  by adding Sections 662.0062, 662.0064, and 662.0068 to read as
  follows:
         Sec. 662.0062.  ELIGIBILITY; APPLICATION.  (a)  To be
  eligible for an instructor license, an applicant must:
               (1)  have completed a commission-approved training
  program on motorcycle operator training and safety instruction
  administered by the Texas A&M Engineering Extension Service;
               (2)  have held for the two years preceding the date of
  submitting the application a valid driver's license that entitles
  the applicant to operate a motorcycle on a public road; and
               (3)  have accumulated less than 10 points under the
  driver responsibility program established by Chapter 708.
         (b)  The commission by rule may adopt additional
  requirements for issuance of an instructor license.
         (c)  To be eligible for a motorcycle school license, an
  applicant must meet the minimum standards established by commission
  rule for:
               (1)  health and safety;
               (2)  the school's facility; and
               (3)  consumer protection.
         (d)  The department shall issue a license to an applicant who
  meets the eligibility requirements established under this chapter
  and department rule and who pays the required fee.
         (e)  The department may prescribe an application form for
  applicants to submit when applying for a license under this
  section.
         Sec. 662.0064.  INSTRUCTOR TRAINING; ADMINISTRATOR.  The
  Texas A&M Engineering Extension Service, in consultation with the
  department, shall administer the training program required by
  Section 662.0062(a)(1).
         Sec. 662.0068.  PROGRAM CERTIFICATES. The department shall
  issue a certificate of completion to a person who completes a
  department-approved motorcycle operator training and safety course
  conducted by a motorcycle school on receipt of notice from the
  motorcycle school that conducted the course.  The department may
  develop a process that allows a motorcycle school to issue a
  certificate of completion to the person.
         SECTION 8.008.  Section 662.008, Transportation Code, is
  amended to read as follows:
         Sec. 662.008.  DENIAL, SUSPENSION, OR REVOCATION
  [CANCELLATION] OF INSTRUCTOR OR MOTORCYCLE SCHOOL LICENSE
  [APPROVAL].  (a)  The executive director or commission [designated
  state agency] may deny an application for, suspend, or revoke a
  license issued [cancel its approval for a program sponsor to
  conduct or for an instructor to teach a course offered] under this
  chapter if the applicant, instructor, or motorcycle school
  [sponsor]:
               (1)  does not satisfy the requirements established
  under this chapter to receive or retain the license [approval];
               (2)  permits fraud or engages in a fraudulent practice
  with reference to an application for [to] the license [agency];
               (3)  induces or countenances fraud or a fraudulent
  practice by a person applying for a driver's license or permit;
               (4)  permits fraud or engages in a fraudulent practice
  in an action between the applicant or license holder and the public;
  or
               (5)  fails to comply with this chapter or rules adopted
  under this chapter [of the state agency].
         (b)  Following denial of an application for a license or
  the[,] suspension[,] or revocation of a license issued under this
  chapter [cancellation of the approval of a program sponsor or an
  instructor], notice and opportunity for a hearing must be given as
  provided by:
               (1)  Chapter 2001, Government Code; and
               (2)  Chapter 53, Occupations Code.
         SECTION 8.009.  Section 662.009, Transportation Code, is
  amended to read as follows:
         Sec. 662.009.  RULES. The commission [designated state
  agency] may adopt rules to administer this chapter.
         SECTION 8.010.  Section 662.010, Transportation Code, is
  amended to read as follows:
         Sec. 662.010.  NONAPPLICABILITY OF CERTAIN OTHER LAW.
  Chapter 1001, Education Code [332, Acts of the 60th Legislature,
  Regular Session, 1967 (Article 4413(29c), Vernon's Texas Civil
  Statutes)], does not apply to training offered or conducted under
  this chapter.
         SECTION 8.011.  Section 662.011, Transportation Code, is
  amended by amending Subsection (b) and adding Subsection (d) to
  read as follows:
         (b)  Money deposited to the credit of the motorcycle
  education fund account may be used only to defray the cost of:
               (1)  administering the motorcycle operator training
  and safety program; [and]
               (2)  conducting the motorcyclist safety and share the
  road campaign described by Section 201.621; and
               (3)  administering the grant program under Section
  662.0115.
         (d)  The department may apply for and accept gifts, grants,
  and donations from any organization to be deposited in the
  motorcycle education fund account for the purpose of improving
  motorcycle safety in this state.
         SECTION 8.012.  Chapter 662, Transportation Code, is amended
  by adding Section 662.0115 to read as follows:
         Sec. 662.0115.  MOTORCYCLE SAFETY GRANT PROGRAM. (a)  Using
  money from the motorcycle education fund account, the department
  may establish and administer a grant program to improve motorcycle
  safety in this state.
         (b)  The department may award a person a grant to: 
               (1)  promote the motorcycle operator training and
  safety program or any other motorcycle safety program in this
  state; 
               (2)  increase the number of individuals seeking
  motorcycle operator training or licensure as an instructor to
  conduct motorcycle operator training; or
               (3)  support any other goal reasonably likely to
  improve motorcycle safety in this state. 
         (c)  To administer the grant program, the department shall
  prescribe:
               (1)  grant application procedures;
               (2)  guidelines relating to grant amounts; and
               (3)  criteria for evaluating grant applications.
         (d)  The department shall consult with the motorcycle safety
  advisory board regarding any proposed award of a grant under this
  section.
         (e)  An institution of higher education is eligible to
  receive a grant awarded under this section and, if applicable, may
  use the grant money awarded to perform a duty imposed under Section
  662.0064 or 662.013.
         SECTION 8.013.  Section 662.012, Transportation Code, is
  amended to read as follows:
         Sec. 662.012.  REPORTS. (a)  The department [designated
  state agency] shall require each motorcycle school [provider of a
  motorcycle operator training and safety program] to report on the
  school's program in the form and manner prescribed by the
  department [compile and forward to the agency each month a report on
  the provider's programs]. The report must include:
               (1)  the number and types of courses provided in the
  reporting period;
               (2)  the number of persons who took each course in the
  reporting period;
               (3)  the number of instructors available to provide
  training under the school's [provider's] program in the reporting
  period;
               (4)  information collected by surveying persons taking
  each course as to the length of any waiting period the person
  experienced before being able to enroll in the course;
               (5)  the number of persons on a waiting list for a
  course at the end of the reporting period; and
               (6)  any other information the department [agency]
  reasonably requires.
         (b)  The department [designated state agency] shall maintain
  [a compilation of] the reports submitted under Subsection (a) on a
  by-site basis.  [The agency shall update the compilation as soon as
  practicable after the beginning of each month.]
         (c)  The department [designated state agency] shall provide
  without charge a copy of the most recent reports submitted
  [compilation] under Subsection (a) [(b)] to any member of the
  legislature on request.
         SECTION 8.014.  Chapter 662, Transportation Code, is amended
  by adding Section 662.013 to read as follows:
         Sec. 662.013.  RESEARCH, ADVOCACY, AND EDUCATION.  The Texas
  A&M Transportation Institute, in consultation with the department,
  shall:
               (1)  research motorcycle safety in this state; 
               (2)  provide advocacy on motorcycle safety issues in
  this state; and
               (3)  provide education to the public on motorcycle
  safety issues in this state.
         SECTION 8.015.  Section 663.001, Transportation Code, is
  amended by amending Subdivision (1-b) and adding Subdivisions (1-c)
  and (1-d) to read as follows:
               (1-b)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (1-c)  "Department" means the Texas Department of
  Licensing and Regulation.
               (1-d)  "Off-highway vehicle" means:
                     (A)  an all-terrain vehicle or recreational
  off-highway vehicle, as those terms are defined by Section 502.001;
  or
                     (B)  a utility vehicle.
         SECTION 8.016.  Section 663.011, Transportation Code, is
  amended to read as follows:
         Sec. 663.011.  ADMINISTRATION OF PROGRAM [DESIGNATED
  DIVISION OR STATE AGENCY]. The department [governor] shall
  [designate a division of the governor's office or a state agency to
  establish and] administer an off-highway vehicle operator
  education and certification program and enforce the laws governing
  the program.
         SECTION 8.017.  Section 663.013, Transportation Code, is
  amended to read as follows:
         Sec. 663.013.  PROGRAM STANDARDS [OFF-HIGHWAY VEHICLE
  SAFETY COORDINATOR]. (a)  The department [designated division or
  state agency shall employ an off-highway vehicle safety
  coordinator.
         [(b)  The coordinator] shall supervise the off-highway
  vehicle operator education and certification program and shall
  determine:
               (1)  locations at which courses will be offered;
               (2)  fees for the courses;
               (3)  qualifications of instructors;
               (4)  course curriculum; and
               (5)  standards for operator safety certification.
         (b) [(c)]  In establishing standards for instructors,
  curriculum, and operator certification, the department
  [coordinator] shall consult and be guided by standards established
  by recognized off-highway vehicle safety organizations.
         SECTION 8.018.  Section 663.014, Transportation Code, is
  amended to read as follows:
         Sec. 663.014.  CONTRACTS. To administer the education
  program and certify off-highway vehicle operators, the department
  [designated division or state agency] may contract with nonprofit
  safety organizations, nonprofit educational organizations,
  institutions of higher education, or agencies of local governments.
         SECTION 8.019.  Section 663.015(a), Transportation Code, is
  amended to read as follows:
         (a)  If the department [off-highway vehicle safety
  coordinator] determines that vehicle operation is not feasible in a
  program component or at a particular program location, the operator
  education and certification program for persons who are at least 14
  years of age may use teaching or testing methods that do not involve
  the actual operation of an off-highway vehicle.
         SECTION 8.020.  Section 663.017, Transportation Code, is
  amended to read as follows:
         Sec. 663.017.  DENIAL, SUSPENSION, OR CANCELLATION OF
  APPROVAL. (a)  The executive director or commission [designated
  division or state agency] may deny, suspend, or cancel its approval
  for a program sponsor to conduct or for an instructor to teach a
  course offered under this chapter if the applicant, sponsor, or
  instructor:
               (1)  does not satisfy the requirements established
  under this chapter to receive or retain approval;
               (2)  permits fraud or engages in fraudulent practices
  with reference to an application to the department [division or
  agency];
               (3)  induces or countenances fraud or fraudulent
  practices by a person applying for a driver's license or permit;
               (4)  permits or engages in a fraudulent practice in an
  action between the applicant or license holder and the public; or
               (5)  fails to comply with rules of the department
  [division or agency].
         (b)  Before the executive director or commission [designated
  division or agency] may deny, suspend, or cancel the approval of a
  program sponsor or an instructor, notice and opportunity for a
  hearing must be given as provided by:
               (1)  Chapter 2001, Government Code; and
               (2)  Chapter 53, Occupations Code.
         SECTION 8.021.  Section 663.018, Transportation Code, is
  amended to read as follows:
         Sec. 663.018.  RULES. The commission [designated division
  or state agency] may adopt rules to administer this chapter.
         SECTION 8.022.  Section 663.019, Transportation Code, is
  amended to read as follows:
         Sec. 663.019.  EXEMPTIONS. The commission [designated
  division or state agency] by rule may temporarily exempt the
  residents of any county from Section 663.015 or from Section
  663.031(a)(1) until the appropriate education and certification
  program is established at a location that is reasonably accessible
  to the residents of that county.
         SECTION 8.023.  Section 663.033(d), Transportation Code, is
  amended to read as follows:
         (d)  The department or executive director [coordinator] may
  exempt off-highway vehicles that are participating in certain
  competitive events from the requirements of this section.
         SECTION 8.024.  Section 663.037(e), Transportation Code, is
  amended to read as follows:
         (e)  The commission [director of the Department of Public
  Safety] shall adopt standards and specifications that apply to the
  color, size, and mounting position of the flag required under
  Subsections (d)(2) and (g)(2).
         SECTION 8.025.  Sections 662.002(b), 662.003, 662.004, and
  662.007, Transportation Code, are repealed.
         SECTION 8.026.  (a)  In this section:
               (1)  "Department" means the Department of Public
  Safety.
               (2)  "Program" means the motorcycle operator training
  and safety program established under Chapter 662, Transportation
  Code, as that chapter existed before the effective date of this Act.
         (b)  As soon as practicable after the effective date of this
  article and not later than August 31, 2020, the department shall
  dispose of motorcycles and other equipment related to the program
  that the department possesses or has leased to entities offering
  training under the program. The plan must conform with the
  requirements of Subsection (c) of this section.
         (c)  The department shall dispose of the motorcycles and
  other equipment related to the program in the following manner:
               (1)  not later than February 28, 2020, the department
  shall provide to any entity to whom the department leased a
  motorcycle or other equipment related to the program a reasonable
  period determined by the department to purchase from the department
  or return the motorcycle or other equipment;
               (2)  after the expiration of the period described by
  Subdivision (1) of this subsection, but not later than May 31, 2020,
  the department shall:
                     (A)  determine the need of the Texas Department of
  Licensing and Regulation, the Texas A&M Transportation Institute,
  and the Texas A&M Engineering Extension Service for motorcycles and
  other equipment necessary to provide motorcycle operator training
  for the instructors under the program; and
                     (B)  subject to the need determined under
  Paragraph (A) of this subdivision and the availability of
  motorcycles and other equipment related to the program, transfer
  the motorcycles and equipment to the Texas Department of Licensing
  and Regulation, institute, or service under that paragraph, as
  applicable; and
               (3)  after the determination and any transfer under
  Subdivision (2) of this subsection, but not later than August 31,
  2020, sell any remaining motorcycles and related equipment of the
  program in accordance with Chapter 2175, Government Code.
         (d)  Except for the fee described by Section 2175.188,
  Government Code, all revenue generated by the disposition of
  motorcycles and other equipment related to the program under this
  section shall be deposited in the motorcycle education fund account
  established under Section 662.011, Transportation Code.
         (e)  Not later than August 31, 2020, the department and the
  Texas Department of Licensing and Regulation shall enter into a
  memorandum of understanding regarding any property acquired by the
  department by lease or purchase using money from the motorcycle
  education fund account established under Section 662.011,
  Transportation Code, to ensure that the Department of Public Safety
  appropriately compensates the fund for those assets.
         SECTION 8.027.  (a)  In this section:
               (1)  "Former administrator" means the Texas Department
  of Public Safety.
               (2)  "Licensing commission" means the Texas Commission
  of Licensing and Regulation.
               (3)  "Licensing department" means the Texas Department
  of Licensing and Regulation.
               (4)  "Program" means the:
                     (A)  motorcycle operator training and safety
  program under Chapter 662, Transportation Code; and
                     (B)  off-highway vehicle operator education and
  certification program under Chapter 663, Transportation Code.
         (b)  On September 1, 2020:
               (1)  all functions and activities related to the
  program performed by the former administrator immediately before
  that date are transferred to the licensing department;
               (2)  all rules, fees, policies, procedures, decisions,
  and forms related to the program adopted by the former
  administrator are continued in effect as rules, fees, policies,
  procedures, decisions, and forms of the licensing commission or the
  licensing department, as applicable, and remain in effect until
  amended or replaced by the licensing commission or licensing
  department;
               (3)  a complaint, investigation, contested case, or
  other proceeding related to the program before the former
  administrator that is pending on September 1, 2020, is transferred
  without change in status to the licensing department or the
  licensing commission, as appropriate;
               (4)  all money, contracts, leases, property, and
  obligations related to the program of the former administrator are
  transferred to the licensing department;
               (5)  all property related to the program in the custody
  of the former administrator is transferred to the licensing
  department; and
               (6)  the unexpended and unobligated balance of any
  money appropriated by the legislature for the former administrator
  for the purpose of administering the program is transferred to the
  licensing department.
         (c)  The former administrator shall provide the licensing
  department with access to any systems or information necessary for
  the department to accept the program transferred under this Act.
         (d)  A license or certificate issued by the former
  administrator is continued in effect as a license or certificate of
  the licensing department.
         (e)  On September 1, 2020, all full-time equivalent employee
  positions at the former administrator that primarily concern the
  administration or enforcement of the program become positions at
  the licensing department.
         SECTION 8.028.  (a)  Except as provided by Subsection (b) of
  this section, this article takes effect September 1, 2020.
         (b)  Section 8.026 of this article takes effect immediately
  if this Act receives a vote of two-thirds of all the members elected
  to each house, as provided by Section 39, Article III, Texas
  Constitution. If this Act does not receive the vote necessary for
  immediate effect, Section 8.026 takes effect on the 91st day after
  the last day of the legislative session.
  ARTICLE 9. EFFECTIVE DATE
         SECTION 9.001.  Except as otherwise provided by this Act,
  this Act takes effect September 1, 2019.