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A BILL TO BE ENTITLED
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AN ACT
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relating to the continuation and functions of the Texas Department |
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of Licensing and Regulation. |
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ARTICLE 1. GENERAL POWERS AND DUTIES |
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SECTION 1.01. Section 51.002, Occupations Code, is amended |
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to read as follows: |
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Sec. 51.002. APPLICATION OF SUNSET ACT. [(a)] The Texas |
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Commission of Licensing and Regulation and the Texas Department of |
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Licensing and Regulation are subject to Chapter 325, Government |
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Code (Texas Sunset Act). Unless continued in existence as provided |
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by that chapter, the commission and the department are abolished |
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September 1, 2033 [2021]. |
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[(b) The review of the commission and department by the |
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Sunset Advisory Commission under this section may not include a |
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review of any program that was transferred to the department on or |
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after September 1, 2016.] |
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SECTION 1.02. Section 51.054, Occupations Code, is amended |
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by amending Subsection (b) and adding Subsection (d) to read as |
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follows: |
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(b) The training program must provide the person with |
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information regarding: |
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(1) the law governing [legislation that created the] |
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department operations [and the commission]; |
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(2) the programs, functions, rules, and budget of |
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[operated by] the department; |
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(3) the scope of and limitations on the rulemaking |
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authority of the commission [role and functions of the department]; |
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(4) [the rules of the department, with an emphasis on |
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the rules that relate to disciplinary and investigatory authority; |
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[(5) the current budget for the department; |
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[(6)] the results of the most recent formal audit of |
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the department; |
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(5) [(7)] the requirements of: |
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(A) laws relating to [the] open meetings, [law, |
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Chapter 551, Government Code; |
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[(B) the] public information, [law, Chapter 552, |
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Government Code; |
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[(C) the] administrative procedure, and |
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disclosing conflicts of interest [law, Chapter 2001, Government |
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Code]; and |
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(B) [(D)] other laws applicable to members of a |
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state policy-making body in performing their duties [relating to |
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public officials, including conflict-of-interest laws]; and |
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(6) [(8)] any applicable ethics policies adopted by |
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the department or the Texas Ethics Commission. |
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(d) The executive director of the department shall create a |
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training manual that includes the information required by |
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Subsection (b). The executive director shall distribute a copy of |
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the training manual annually to each member of the commission. Each |
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member of the commission shall sign and submit to the executive |
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director a statement acknowledging that the member received and has |
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reviewed the training manual. |
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SECTION 1.03. Section 51.209, Occupations Code, is amended |
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by adding Subsections (a-1) and (a-2) to read as follows: |
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(a-1) An advisory board shall meet at the call of the |
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executive director or the presiding officer of the commission. |
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(a-2) An advisory board may meet by telephone conference |
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call, videoconference, or other similar telecommunication method, |
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provided that each portion of the meeting that is required to be |
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open to the public shall be audible to the public and, in the case of |
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a meeting held by videoconference, visible to the public. If a |
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problem occurs that causes a meeting to no longer be visible or |
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audible to the public as required under this subsection, the |
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meeting must be recessed until the problem is resolved. If the |
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problem is not resolved in six hours or less, the meeting must be |
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adjourned. The face of each participant in a meeting held by |
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videoconference, while that participant is speaking, must be |
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clearly visible, and the participant's voice must be audible, to |
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each other participant and, during the open portion of the meeting, |
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to the members of the public. A meeting held by telephone |
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conference call, videoconference, or other similar |
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telecommunication method is not subject to the requirements of |
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Sections 551.127(a-3), (b), (c), (e), (f), (h), (i), and (j), |
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Government Code. |
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SECTION 1.04. Subchapter D, Chapter 51, Occupations Code, |
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is amended by adding Sections 51.2095 and 51.211 to read as follows: |
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Sec. 51.2095. INTERDISCIPLINARY ADVISORY BOARDS. The |
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executive director or the presiding officer of the commission may |
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appoint interdisciplinary advisory boards consisting of members |
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from various businesses, industries, general trades, or |
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occupations to provide expertise related to a program regulated by |
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the department. |
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Sec. 51.211. RISK-BASED INSPECTIONS. (a) The department |
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shall conduct risk-based inspections that prioritize inspections |
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based on key risk factors identified by the department, including: |
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(1) whether a license holder has previously violated a |
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law establishing a regulatory program administered by the |
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department or a rule or order of the commission or executive |
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director; and |
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(2) the number of violations committed by a license |
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holder. |
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(b) The department may use alternative inspection methods, |
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including the use of videoconference technology or other methods |
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instead of conducting an in-person inspection, in circumstances the |
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department considers appropriate. |
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SECTION 1.05. Section 51.251, Occupations Code, is amended |
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by adding Subsection (c) to read as follows: |
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(c) The executive director shall establish methods by which |
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consumers and service recipients are notified of the name, mailing |
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address, and telephone number of the department for the purpose of |
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directing complaints to the department. |
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SECTION 1.06. Section 51.252, Occupations Code, is amended |
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by amending Subsections (a) and (c) and adding Subsection (b-2) to |
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read as follows: |
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(a) The department shall maintain a system to promptly and |
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efficiently act on complaints filed with the department. The |
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department shall maintain information about parties to the |
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complaint, the subject matter of the complaint, a summary of the |
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results of the review or investigation of the complaint, and its |
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disposition [The executive director shall establish methods by |
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which consumers and service recipients are notified of the name, |
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mailing address, and telephone number of the department for the |
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purpose of directing complaints to the department. The department |
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shall provide to the person filing the complaint and to each person |
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who is a subject of the complaint information about the |
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department's policies and procedures relating to complaint |
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investigation and resolution]. |
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(b-2) The department shall make information available |
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describing its procedures for complaint investigation and |
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resolution. |
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(c) The department [, at least quarterly and until final |
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disposition of the complaint,] shall periodically notify the |
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[person filing the] complaint parties [and each person who is a |
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subject of the complaint] of the status of the complaint until final |
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disposition [investigation] unless the notice would jeopardize an |
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[undercover] investigation. |
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SECTION 1.07. Subchapter E, Chapter 51, Occupations Code, |
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is amended by adding Sections 51.2521 and 51.255 to read as follows: |
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Sec. 51.2521. COMPLAINT INVESTIGATION. (a) The department |
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shall assign priorities and investigate complaints based on risk to |
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the public of the conduct alleged in the complaint. |
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(b) If the department determines at any time that an |
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allegation made or formal complaint submitted by a person is |
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inappropriate or without merit, the department shall dismiss the |
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complaint. |
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Sec. 51.255. STATISTICAL ANALYSIS OF COMPLAINTS. (a) The |
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department shall make available on the department's Internet |
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website a statistical analysis of the complaints received by the |
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department. |
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(b) The analysis under this section must include aggregate |
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information on the number, source, type, and disposition of |
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complaints received during the preceding state fiscal year and must |
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include, as applicable, the following information for each program |
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regulated by the department: |
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(1) the number of license holders; |
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(2) the number of complaints received against license |
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holders; |
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(3) the number of complaints resolved and the manner |
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in which they were resolved, including: |
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(A) the number of complaints dismissed and the |
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reasons for dismissal; |
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(B) the number of contested cases referred to and |
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heard by the State Office of Administrative Hearings; |
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(C) the number of cases appealed to a district |
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court; |
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(D) the number of complaints resulting in |
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disciplinary action, the disciplinary action taken, and whether the |
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disciplinary action was imposed by an agreed settlement or default |
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order issued by the executive director or a final order issued by |
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the commission; |
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(E) a breakdown of the nature of the alleged |
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violations in: |
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(i) complaints opened for investigation; |
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and |
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(ii) cases that resulted in disciplinary |
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action; and |
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(F) the number of complaints resolved, |
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categorized by whether the complaint originated from department |
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staff or from the public; |
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(4) the average time required to resolve a complaint; |
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(5) the average amount of administrative penalties |
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assessed; and |
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(6) the number and amount of refunds ordered by the |
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commission or executive director or obtained through an informal |
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resolution. |
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SECTION 1.08. Section 51.351, Occupations Code, is amended |
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by adding Subsection (e) to read as follows: |
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(e) The department may take action under Section 51.353 for |
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a violation identified during an inspection. |
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SECTION 1.09. Subchapter G, Chapter 51, Occupations Code, |
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is amended by adding Section 51.359 to read as follows: |
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Sec. 51.359. REFUND. (a) Subject to Subsection (b), the |
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commission or executive director may order a license holder to pay a |
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refund to a consumer as provided in an agreed settlement, default |
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order, or commission order instead of or in addition to imposing an |
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administrative penalty or sanction. |
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(b) The amount of a refund ordered may not exceed the amount |
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the consumer paid to the license holder for a service regulated by |
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the department. The commission or executive director may not |
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require payment of other damages or estimate harm in a refund order. |
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SECTION 1.10. Section 51.4012(a), Occupations Code, is |
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amended to read as follows: |
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(a) Notwithstanding any other law, the commission may |
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determine that a person is not eligible for a license based on the |
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person's criminal history [or other information that indicates that |
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the person lacks the honesty, trustworthiness, and integrity to |
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hold a license issued by the department]. |
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SECTION 1.11. Section 51.405, Occupations Code, is amended |
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to read as follows: |
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Sec. 51.405. CONTINUING EDUCATION. (a) The department |
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[commission] shall recognize, prepare, or administer continuing |
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education programs for license holders. A license holder must |
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participate in the programs to the extent required by the |
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commission to keep the person's license. |
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(b) Notwithstanding other law, the commission by rule may: |
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(1) establish a minimum number of hours of continuing |
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education required for license renewal; |
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(2) provide for the registration and renewal of |
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continuing education providers and the approval of continuing |
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education courses; and |
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(3) assess reasonable and necessary fees on continuing |
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education providers. |
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(c) In adopting rules under this section for a program |
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regulated by the department, the commission shall consult, if |
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applicable, with the advisory board established for the program. |
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SECTION 1.12. Subchapter H, Chapter 51, Occupations Code, |
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is amended by adding Section 51.409 to read as follows: |
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Sec. 51.409. FINANCIAL DISCLOSURE STATEMENT. (a) The |
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commission by rule may require a person, other than an individual, |
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applying for a license issued by the department to submit with the |
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license application a financial disclosure statement. The rules |
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may require any of the following information to be disclosed based |
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on the type of license for which the application is submitted: |
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(1) the name of the applicable business entity; |
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(2) the name of each person who has a direct financial |
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investment in the business; |
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(3) the name of each person, other than an individual, |
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who: |
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(A) has a financial investment in the business; |
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and |
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(B) is not otherwise disclosed under Subdivision |
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(2); |
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(4) the total amount or percentage of the financial |
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investment made by each person described by Subdivision (2); and |
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(5) the name of each of the following persons |
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associated with the business, if the person is not otherwise |
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disclosed under Subdivision (2) or (3): |
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(A) a partner; |
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(B) an officer; |
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(C) a director; |
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(D) a managing employee; |
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(E) an owner or person who controls the owner; |
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and |
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(F) a person who acts as a controlling person of |
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the business through the exercise of direct or indirect influence |
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or control over the management of the business, the expenditure of |
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money by the business, or a policy of the business, including: |
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(i) any management company, landlord, |
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marketing company, or similar person who operates or contracts for |
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the operation of the business and, if the business is a publicly |
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traded corporation or is controlled by a publicly traded |
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corporation, any officer or director of the corporation; |
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(ii) an individual who has a personal, |
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familial, or other relationship with an owner, manager, landlord, |
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tenant, or provider of a business that allows the individual to |
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exercise actual control of the business; and |
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(iii) any other person the commission by |
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rule requires to be included based on the person's exercise of |
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direct or indirect influence or control other than a shareholder or |
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lender of the corporation. |
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(b) The department may deny an application for the issuance |
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or renewal of a license or may suspend or revoke a license on the |
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grounds that an applicant or license holder: |
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(1) fails to disclose a relationship for which |
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disclosure is required by rules adopted under this section; or |
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(2) discloses a relationship for which disclosure is |
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required by rules adopted under this section with a person whose |
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license was revoked or who has failed to comply with an order of the |
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commission or executive director. |
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SECTION 1.13. Section 202.505, Occupations Code, is amended |
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to read as follows: |
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Sec. 202.505. REEXAMINATION IF LICENSE SUSPENDED OR |
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REVOKED. The department may refuse to reinstate a license or to |
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issue a new license until a podiatrist has passed the regular |
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license examination if the commission or executive director |
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suspended or revoked the license for: |
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(1) failure to satisfy continuing education |
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requirements [under Section 202.305]; or |
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(2) nonpayment of the license renewal fee. |
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SECTION 1.14. Section 402.207(c), Occupations Code, is |
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amended to read as follows: |
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(c) An apprentice permit holder shall work under the |
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supervision of a license holder for at least one year. [During the |
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apprentice year, the apprentice permit holder shall complete 20 |
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hours of classroom continuing education as required by Section |
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402.303 for a license holder.] |
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SECTION 1.15. Section 402.305, Occupations Code, is amended |
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to read as follows: |
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Sec. 402.305. CONTINUING EDUCATION EXEMPTIONS. The |
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department may renew the license of a license holder who does not |
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comply with the applicable continuing education requirements [of |
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Section 402.303 or 402.304] if the license holder: |
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(1) was licensed for the first time during the 24 |
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months before the reporting date; or |
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(2) submits proof from an attending physician that the |
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license holder suffered a serious or disabling illness or physical |
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disability that prevented compliance with the continuing education |
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requirements during the 24 months before the reporting date. |
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SECTION 1.16. Section 802.062(b), Occupations Code, is |
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amended to read as follows: |
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(b) An [The] inspection by the department must be conducted |
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during the facility's normal business hours, and the licensed |
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breeder or a representative of the licensed breeder must be given a |
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reasonable opportunity to be present during the inspection. |
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SECTION 1.17. Section 1151.1581, Occupations Code, is |
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amended to read as follows: |
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Sec. 1151.1581. CONTINUING EDUCATION. (a) [The commission |
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shall recognize, prepare, or administer continuing education |
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programs for registrants under this chapter. |
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[(b)] The comptroller must review and approve any [all] |
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continuing education programs for registrants. |
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(b) [(c) A registrant must participate in the programs to |
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the extent required by the department to keep the person's |
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certificate of registration. |
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[(d) The commission may set fees for continuing education |
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courses and providers of continuing education courses in amounts |
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reasonable and necessary to cover the department's costs in |
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administering the department's duties under this section. |
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[(e)] The comptroller may set fees for any continuing |
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education courses and providers of continuing education courses in |
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amounts reasonable and necessary to cover the comptroller's costs |
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in administering the comptroller's duties under this section. |
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[(f) As part of the continuing education requirements for a |
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registered professional appraiser who is the chief appraiser of an |
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appraisal district, the commission by rule shall require the |
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registrant to complete: |
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[(1) at least half of the required hours in a program |
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devoted to one or more of the topics listed in Section 1151.164(b); |
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and |
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[(2) at least two of the required hours in a program of |
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professional ethics specific to the chief appraiser of an appraisal |
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district, including a program on the importance of maintaining the |
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independence of an appraisal office from political pressure.] |
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SECTION 1.18. Section 1152.106, Occupations Code, is |
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amended to read as follows: |
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Sec. 1152.106. [MEETINGS;] VOTE REQUIRED FOR ACTION. [(a) |
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The council shall meet at least semiannually at the call of the |
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presiding officer or at the call of a majority of its members. |
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[(b)] A decision of the council is not effective unless it |
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receives the affirmative vote of at least four members. |
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SECTION 1.19. Section 1953.106, Occupations Code, is |
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amended to read as follows: |
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Sec. 1953.106. RENEWAL OF CERTIFICATE. [(a)] To renew a |
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certificate of registration under this chapter, a professional |
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sanitarian must: |
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(1) pay to the department a renewal fee prescribed by |
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the commission by rule; and |
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(2) provide proof of completion of any applicable |
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continuing education requirements prescribed by the commission by |
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rule. |
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SECTION 1.20. Section 1958.104, Occupations Code, is |
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amended to read as follows: |
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Sec. 1958.104. RULES REGARDING LICENSE APPLICATION. The |
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commission shall adopt rules regarding a license application. The |
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commission shall adopt rules that establish minimum requirements |
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for a license, including: |
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(1) the type of license; |
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(2) the qualifications for the license, including any |
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previous training required under Section 1958.106; |
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(3) renewal requirements for the license[, including |
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ongoing continuing education required under Section 1958.106]; and |
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(4) liability insurance requirements for the license. |
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SECTION 1.21. Section 1958.106, Occupations Code, is |
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amended to read as follows: |
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Sec. 1958.106. TRAINING [; CONTINUING EDUCATION]. (a) The |
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commission shall adopt rules regarding training required under this |
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chapter [and continuing education required for a license holder |
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under this chapter]. |
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(b) The rules may include requirements regarding training |
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[and continuing education] providers, including rules |
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establishing: |
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(1) accreditation by the department; |
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(2) curriculum requirements; and |
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(3) qualifications. |
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SECTION 1.22. Section 2308.157, Occupations Code, is |
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amended to read as follows: |
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Sec. 2308.157. REQUIREMENT FOR INITIAL RENEWAL OF INCIDENT |
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MANAGEMENT TOWING OPERATOR'S LICENSE [CONTINUING EDUCATION]. [(a) |
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The commission by rule shall recognize, prepare, or administer |
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continuing education programs for license holders. Except as |
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provided by Subsection (c), each license holder must complete a |
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continuing education program before the license holder may renew |
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the license holder's license. |
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[(b) A person recognized by the commission to offer a |
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continuing education program must: |
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[(1) register with the department; and |
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[(2) comply with rules adopted by the commission |
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relating to continuing education. |
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[(c)] To renew an incident management towing operator's |
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license the first time, a license holder must complete a |
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professional development course relating to incident management |
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towing that is approved and administered by the department [under |
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this section]. |
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SECTION 1.23. Section 2308.159(c), Occupations Code, is |
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amended to read as follows: |
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(c) A license holder may renew a license issued under this |
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chapter by: |
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(1) submitting an application on a form prescribed by |
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the executive director; |
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(2) submitting evidence demonstrating compliance with |
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the requirements for the license type as required by this chapter or |
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commission rule; |
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(3) paying a renewal fee; and |
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(4) completing any applicable continuing education |
|
requirements [as required by Section 2308.157]. |
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SECTION 1.24. The following provisions are repealed: |
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(1) Section 1001.058(h), Education Code; |
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(2) Section 469.053(e), Government Code; |
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(3) Section 754.012(d), Health and Safety Code; |
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(4) Section 754.0174, Health and Safety Code; |
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(5) Section 755.016, Health and Safety Code; |
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(6) Section 51.0021, Occupations Code; |
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(7) Section 51.252(d), Occupations Code; |
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(8) Section 202.305, Occupations Code; |
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(9) Section 202.5085, Occupations Code; |
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(10) Section 203.304, Occupations Code; |
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(11) Section 203.406, Occupations Code; |
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(12) Section 401.355, Occupations Code; |
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(13) Section 402.303, Occupations Code; |
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(14) Section 403.152, Occupations Code; |
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(15) Section 455.0571, Occupations Code; |
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(16) Section 506.105, Occupations Code; |
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(17) Section 605.261, Occupations Code; |
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(18) Section 701.303, Occupations Code; |
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(19) Section 701.512, Occupations Code; |
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(20) Section 802.062(a), Occupations Code; |
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(21) Section 802.065(e), Occupations Code; |
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(22) Section 1152.204, Occupations Code; |
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(23) Section 1302.208(a), Occupations Code; |
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(24) Section 1305.055, Occupations Code; |
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(25) Section 1305.168, Occupations Code; |
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(26) Section 1901.107(a), Occupations Code; |
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(27) Section 1952.1051, Occupations Code; |
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(28) Section 1958.056(b), Occupations Code; |
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(29) Section 2303.056(b), Occupations Code; |
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(30) Section 2308.055, Occupations Code; |
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(31) Section 2309.056, Occupations Code; and |
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(32) Section 2309.106(a), Occupations Code. |
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SECTION 1.25. (a) Except as provided by Subsection (b) of |
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this section, Section 51.054, Occupations Code, as amended by this |
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article, applies to a member of the Texas Commission of Licensing |
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and Regulation appointed before, on, or after September 1, 2021. |
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(b) A member of the Texas Commission of Licensing and |
|
Regulation who, before September 1, 2021, completed the training |
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program required by Section 51.054, Occupations Code, as that law |
|
existed before September 1, 2021, is only required to complete |
|
additional training on the subjects added by this article to the |
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training program required by Section 51.054, Occupations Code. A |
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member described by this subsection may not vote, deliberate, or be |
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counted as a member in attendance at a meeting of the commission |
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held on or after December 1, 2021, until the member completes the |
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additional training. |
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ARTICLE 2. DEREGULATION |
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SECTION 2.01. The following provisions of the Occupations |
|
Code are repealed: |
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(1) Chapter 1703; and |
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(2) Section 2052.002(11-a). |
|
SECTION 2.02. Section 54.0405(d), Family Code, is amended |
|
to read as follows: |
|
(d) A polygraph examination required as a condition of |
|
probation under Subsection (a) must be administered by an |
|
individual who is [: |
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[(1)] specified by the local juvenile probation |
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department supervising the child [; and |
|
[(2) licensed as a polygraph examiner under Chapter |
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1703, Occupations Code]. |
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SECTION 2.03. Sections 411.0074(c) and (d), Government |
|
Code, are amended to read as follows: |
|
(c) The polygraph examination required by this section may |
|
only be administered by a polygraph examiner [licensed under |
|
Chapter 1703, Occupations Code,] who: |
|
(1) is a peace officer commissioned by the department; |
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or |
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(2) has a minimum of two years of experience |
|
conducting preemployment polygraph examinations for a law |
|
enforcement agency. |
|
(d) The department and the polygraph examiner shall |
|
maintain the confidentiality of the results of a polygraph |
|
examination administered under this section, except that [: |
|
[(1) the department and the polygraph examiner may |
|
disclose the results in accordance with Section 1703.306, |
|
Occupations Code; and |
|
[(2) notwithstanding Section 1703.306, Occupations |
|
Code,] the department may disclose any admission of criminal |
|
conduct made during the course of an examination to another |
|
appropriate governmental entity. |
|
SECTION 2.04. Section 245.053(d), Human Resources Code, is |
|
amended to read as follows: |
|
(d) A polygraph examination required as a condition of |
|
release under Subsection (a) must be administered by an individual |
|
who is [: |
|
[(1)] specified by the department [; and |
|
[(2) licensed as a polygraph examiner under Chapter |
|
1703, Occupations Code]. |
|
SECTION 2.05. Section 2052.107, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2052.107. OTHER COMBATIVE SPORTS LICENSES. Unless a |
|
person holds a license or registration issued under this chapter, |
|
the person may not act as a combative sports: |
|
(1) professional contestant; |
|
(2) manager of a professional contestant; |
|
(3) referee; or |
|
(4) judge [; |
|
[(5) second; |
|
[(6) matchmaker; or |
|
[(7) event coordinator]. |
|
SECTION 2.06. On September 1, 2021, the Polygraph Advisory |
|
Committee is abolished. |
|
SECTION 2.07. On September 1, 2021, a pending regulatory |
|
action, including a complaint investigation, disciplinary action, |
|
or administrative penalty proceeding, of the Texas Department of |
|
Licensing and Regulation with respect to a license, permit, or |
|
certification issued under a law repealed by this article, is |
|
terminated. |
|
SECTION 2.08. On September 1, 2021, a license, permit, or |
|
certification issued under a law repealed by this article expires. |
|
SECTION 2.09. Not later than January 1, 2023, the Texas |
|
Department of Licensing and Regulation, in consultation with the |
|
Auctioneer Advisory Board, shall study the regulation of |
|
auctioneering and prepare a report with any findings and |
|
recommendations to improve public safety and the department's |
|
processes and to eliminate inefficiencies, including any necessary |
|
legislative changes. In conducting the study, the department may |
|
consult with any interested organizations, associations, and |
|
stakeholders. The department shall submit the report to the |
|
standing legislative committees with jurisdiction over the |
|
department. |
|
ARTICLE 3. BARBERING AND COSMETOLOGY |
|
SECTION 3.01. Section 1603.001, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1603.001. GENERAL DEFINITIONS. [(a)] In this |
|
chapter: |
|
(1) "Advisory board" means the Barbering and |
|
Cosmetology Advisory Board. |
|
(2) "Commission" means the Texas Commission of |
|
Licensing and Regulation. |
|
(3) [(2)] "Department" means the Texas Department of |
|
Licensing and Regulation. |
|
(4) "Establishment" means a place: |
|
(A) in which barbering or cosmetology is |
|
practiced; and |
|
(B) that is required to hold a license issued |
|
under Subchapter E-2. |
|
(5) [(3)] "Executive director" means the executive |
|
director of the department. |
|
(6) "Manager" means the person who controls or directs |
|
the business of an establishment or directs the work of a person |
|
employed in an establishment. |
|
(7) "School" means a public secondary school, public |
|
postsecondary school, or private postsecondary school: |
|
(A) in which barbering or cosmetology is taught; |
|
and |
|
(B) that is required to hold a license issued |
|
under Subchapter E-3. |
|
[(b) Unless the context clearly indicates otherwise, the |
|
definitions in Chapters 1601 and 1602 apply to this chapter.] |
|
SECTION 3.02. Subchapter A, Chapter 1603, Occupations Code, |
|
is amended by adding Sections 1603.0011, 1603.0012, and 1603.0013 |
|
to read as follows: |
|
Sec. 1603.0011. PRACTICE OF BARBERING OR COSMETOLOGY. (a) |
|
The practices of barbering and cosmetology consist of performing or |
|
offering to perform for compensation any of the following services: |
|
(1) treating a person's hair by: |
|
(A) providing any method of treatment as a |
|
primary service, including arranging, beautifying, bleaching, |
|
cleansing, coloring, cutting, dressing, dyeing, processing, |
|
shaping, singeing, straightening, styling, tinting, or waving; |
|
(B) providing a necessary service that is |
|
preparatory or ancillary to a service under Paragraph (A), |
|
including bobbing, clipping, cutting, or trimming a person's hair |
|
or shaving a person's neck with a safety razor; or |
|
(C) cutting the person's hair as a separate and |
|
independent service for which a charge is directly or indirectly |
|
made separately from charges for any other service; |
|
(2) treating a person's mustache or beard by |
|
arranging, beautifying, coloring, processing, styling, trimming, |
|
or shaving with a safety razor; |
|
(3) cleansing, stimulating, or massaging a person's |
|
scalp, face, neck, shoulders, or arms: |
|
(A) by hand or by using a device, apparatus, or |
|
appliance; and |
|
(B) with or without the use of any cosmetic |
|
preparation, antiseptic, tonic, lotion, or cream; |
|
(4) beautifying a person's face, neck, shoulders, or |
|
arms using a cosmetic preparation, antiseptic, tonic, lotion, |
|
powder, oil, clay, cream, or appliance; |
|
(5) administering facial treatments; |
|
(6) removing superfluous hair from a person's body |
|
using depilatories, preparations or chemicals, tweezers, or other |
|
devices or appliances of any kind or description; |
|
(7) treating a person's nails by: |
|
(A) cutting, trimming, polishing, tinting, |
|
coloring, cleansing, manicuring, or pedicuring; or |
|
(B) attaching false nails; |
|
(8) massaging, cleansing, treating, or beautifying a |
|
person's hands or feet; or |
|
(9) weaving a person's hair by using any method to |
|
attach commercial hair to a person's hair or scalp. |
|
(b) In addition to the services described by Subsection (a), |
|
the practice of barbering includes performing or offering to |
|
perform for compensation the service of shaving a person's face, |
|
neck, mustache, or beard with a razor of any type. |
|
(c) In addition to the services described by Subsection (a), |
|
the practice of cosmetology includes performing or offering to |
|
perform for compensation the service of applying semipermanent, |
|
thread-like extensions composed of single fibers to a person's |
|
eyelashes. |
|
(d) Advertising or representing to the public in any manner |
|
that a person is licensed to perform a barbering or cosmetology |
|
service under this chapter, or that a location or place of business |
|
is an establishment or school, constitutes the practice of |
|
barbering or cosmetology. |
|
(e) In this section, "safety razor" means a razor that is |
|
fitted with a guard close to the cutting edge of the razor that is |
|
intended to: |
|
(1) prevent the razor from cutting too deeply; and |
|
(2) reduce the risk and incidence of accidental cuts. |
|
Sec. 1603.0012. SERVICES NOT CONSTITUTING BARBERING OR |
|
COSMETOLOGY. Barbering and cosmetology do not include: |
|
(1) threading, which involves removing unwanted hair |
|
from a person by using a piece of thread that is looped around the |
|
hair and pulled to remove the hair and includes the incidental |
|
trimming of eyebrow hair; or |
|
(2) servicing a person's wig, toupee, or artificial |
|
hairpiece on a person's head or on a block after the initial retail |
|
sale in any manner described by Section 1603.0011(a)(1). |
|
Sec. 1603.0013. APPLICATION OF CHAPTER. This chapter does |
|
not apply to a person who: |
|
(1) does not represent or advertise to the public |
|
directly or indirectly that the person is authorized by the |
|
department to practice barbering or cosmetology and the person is: |
|
(A) licensed in this state to practice medicine, |
|
dentistry, podiatry, chiropractic, or nursing and operating within |
|
the scope of the person's license; |
|
(B) a commissioned or authorized medical or |
|
surgical officer of the United States armed forces; or |
|
(C) an inmate in the institutional division of |
|
the Texas Department of Criminal Justice who performs barbering or |
|
cosmetology during the person's incarceration; |
|
(2) provides a service in an emergency; |
|
(3) is in the business of or receives compensation for |
|
makeup applications only; |
|
(4) provides a cosmetic service as a volunteer or an |
|
employee performing regular duties at a licensed nursing or |
|
convalescent custodial or personal care home to a patient residing |
|
in the home; |
|
(5) owns, operates, or manages a licensed nursing or |
|
convalescent custodial or personal care home that allows a person |
|
with an operator license to perform cosmetic services for patients |
|
residing in the home on an occasional but not daily basis; |
|
(6) provides an incidental cosmetic service, or owns, |
|
operates, or manages the location where that service is provided, |
|
if the primary purpose of the service is to enable or assist the |
|
recipient of the service to participate as the subject of: |
|
(A) a photographic sitting at a permanent |
|
establishment that charges a fee exclusively for a photographic |
|
sitting; |
|
(B) a television appearance; or |
|
(C) the filming of a motion picture; or |
|
(7) performs only natural hair braiding, including |
|
braiding a person's hair, trimming hair extensions only as |
|
applicable to the braiding process, and attaching commercial hair |
|
by braiding and without the use of chemicals or adhesives. |
|
SECTION 3.03. Section 1603.002, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1603.002. REGULATION OF BARBERING AND COSMETOLOGY BY |
|
DEPARTMENT OF LICENSING AND REGULATION. The department shall |
|
administer this chapter. This chapter [and Chapters 1601 and 1602. |
|
A reference in this chapter to the commission's or department's |
|
powers or duties applies only in relation to those chapters, except |
|
that this section] does not limit the department's or commission's |
|
general powers under Chapter 51. |
|
SECTION 3.04. Subchapter B, Chapter 1603, Occupations Code, |
|
is amended to read as follows: |
|
SUBCHAPTER B. [ADVISORY BOARDS FOR] BARBERING AND COSMETOLOGY |
|
ADVISORY BOARD |
|
Sec. 1603.051. ADVISORY BOARD; MEMBERSHIP. The Barbering |
|
and Cosmetology Advisory Board consists of nine members appointed |
|
by the presiding officer of the commission, with the commission's |
|
approval, as follows: |
|
(1) four members who each hold an individual |
|
practitioner license under Subchapter E-1, including: |
|
(A) at least one holder of a Class A barber |
|
license; and |
|
(B) at least one holder of a cosmetology operator |
|
license; |
|
(2) two members who each hold an establishment |
|
license; |
|
(3) two members who each hold a school license; and |
|
(4) one member who represents the public. |
|
Sec. 1603.052. DUTIES OF ADVISORY BOARD. (a) The advisory |
|
board [boards established under Chapters 1601 and 1602] shall |
|
advise the commission and the department on: |
|
(1) education and curricula for applicants; |
|
(2) the content of examinations; |
|
(3) proposed rules and standards on technical issues |
|
related to barbering and cosmetology; and |
|
(4) other issues affecting [administering this |
|
chapter and Chapters 1601 and 1602 regarding] barbering and [or] |
|
cosmetology[, as applicable]. |
|
(b) The advisory board shall respond to questions from the |
|
commission and the department regarding barbering and cosmetology. |
|
Sec. 1603.053. TERMS; VACANCY. (a) Members of the advisory |
|
board serve staggered six-year terms, with the terms of three |
|
members expiring January 31 of each odd-numbered year. |
|
(b) If a vacancy occurs during a member's term, the |
|
presiding officer of the commission, with the commission's |
|
approval, shall appoint a replacement to fill the unexpired term. |
|
Sec. 1603.054. PRESIDING OFFICER. The presiding officer of |
|
the commission shall appoint one of the advisory board members to |
|
serve as the presiding officer of the advisory board for a term of |
|
two years. |
|
SECTION 3.05. Section 1603.101, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1603.101. RULES. The commission shall adopt rules |
|
consistent with this chapter for[: |
|
[(1)] the administration of this chapter and the |
|
operations of the department in regulating barbering and |
|
cosmetology[; and |
|
[(2) the administration of Chapters 1601 and 1602]. |
|
SECTION 3.06. Section 1603.103(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) Until the department determines, by inspection, that |
|
the person has established the school in compliance with this |
|
chapter, [Chapter 1601, or Chapter 1602,] a person may not operate a |
|
school licensed [or permitted] under this chapter[, Chapter 1601, |
|
or Chapter 1602]. |
|
SECTION 3.07. The heading to Section 1603.104, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 1603.104. [PERIODIC] INSPECTIONS. |
|
SECTION 3.08. Sections 1603.104(a) and (d), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department may enter and inspect at any time during |
|
business hours: |
|
(1) the place of business of any person regulated |
|
under this chapter[, Chapter 1601, or Chapter 1602]; or |
|
(2) any place in which the department has reasonable |
|
cause to believe that a [certificate,] license[,] or permit holder |
|
is practicing in violation of this chapter[, Chapter 1601, or |
|
Chapter 1602] or in violation of a rule or order of the commission |
|
or executive director. |
|
(d) An inspector who discovers a violation of this chapter[, |
|
Chapter 1601, or Chapter 1602] or of a rule or order of the |
|
commission or executive director shall[: |
|
[(1)] provide written notice of the violation to the |
|
license[, certificate,] or permit holder on a form prescribed by |
|
the department[; and |
|
[(2) file a complaint with the executive director]. |
|
SECTION 3.09. Section 1603.1045, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1603.1045. CONTRACT TO PERFORM INSPECTIONS. The |
|
department may contract with a person to perform for the department |
|
inspections of a school or establishment [, shop, or other facility |
|
under this chapter, Chapter 1601, or Chapter 1602]. |
|
SECTION 3.10. Subchapter C, Chapter 1603, Occupations Code, |
|
is amended by adding Section 1603.106 to read as follows: |
|
Sec. 1603.106. CERTAIN BUILDING AND FACILITY STANDARDS |
|
PROHIBITED. The commission may not establish building or facility |
|
standards for a school that are not related to health and safety, |
|
including a requirement that a building or facility of the school |
|
have a specific: |
|
(1) square footage of floor space; |
|
(2) number of chairs; or |
|
(3) number of sinks. |
|
SECTION 3.11. Section 1603.151, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1603.151. NOTIFICATION OF PUBLIC INTEREST INFORMATION |
|
AND PARTICIPATION. The commission by rule shall establish methods |
|
by which consumers and service recipients are notified of the name, |
|
mailing address, and telephone number of the department for the |
|
purpose of directing complaints to the department regarding |
|
barbering and cosmetology. The department may provide for that |
|
notice: |
|
(1) on each registration form, application, or written |
|
contract for services of a person regulated under this chapter[, |
|
Chapter 1601, or Chapter 1602]; |
|
(2) on a sign prominently displayed in the place of |
|
business of each person regulated under this chapter[, Chapter |
|
1601, or Chapter 1602]; or |
|
(3) in a bill for service provided by a person |
|
regulated under this chapter[, Chapter 1601, or Chapter 1602]. |
|
SECTION 3.12. The heading to Subchapter E, Chapter 1603, |
|
Occupations Code, is amended to read as follows: |
|
SUBCHAPTER E. GENERAL [CERTIFICATE,] LICENSE[,] AND PERMIT |
|
PROVISIONS [REQUIREMENTS] |
|
SECTION 3.13. Subchapter E, Chapter 1603, Occupations Code, |
|
is amended by adding Section 1603.2001 to read as follows: |
|
Sec. 1603.2001. RULES FOR ISSUANCE OF LICENSE OR PERMIT. |
|
(a) The commission by rule shall establish requirements for the |
|
issuance of: |
|
(1) a license for an individual practitioner, |
|
establishment, or school; and |
|
(2) a student permit. |
|
(b) Requirements established by the commission under |
|
Subsection (a) for an individual practitioner may include |
|
requirements regarding an applicant's: |
|
(1) minimum age; |
|
(2) education level; and |
|
(3) completed hours of instruction. |
|
(c) In establishing a requirement under this section for the |
|
issuance of a license, the commission shall consider whether the |
|
requirement is the least restrictive requirement possible to ensure |
|
public safety without creating a barrier to entry into the licensed |
|
occupation. |
|
(d) Requirements established under this section: |
|
(1) for an individual practitioner specialty license |
|
may not be more stringent than requirements for a Class A barber |
|
license or a cosmetology operator license; and |
|
(2) for a specialty establishment license may not be |
|
more stringent than requirements for an establishment license. |
|
(e) The commission shall establish standardized |
|
requirements within license categories. |
|
SECTION 3.14. Sections 1603.201 and 1603.202, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 1603.201. APPLICATION FORM. An application for a |
|
[certificate,] license[,] or permit under this chapter must be made |
|
on a form prescribed [and provided] by the department. |
|
Sec. 1603.202. DUPLICATE [CERTIFICATE,] LICENSE[,] OR |
|
PERMIT. The department shall issue a duplicate [certificate,] |
|
license[,] or permit to an applicant who: |
|
(1) submits an application for a duplicate |
|
[certificate,] license[,] or permit to the department; and |
|
(2) pays the required fee. |
|
SECTION 3.15. Subchapter E, Chapter 1603, Occupations Code, |
|
is amended by adding Section 1603.2025 to read as follows: |
|
Sec. 1603.2025. TEMPORARY LICENSE. (a) The department may |
|
issue a temporary license. |
|
(b) The commission by rule may establish requirements for |
|
the issuance of a temporary license. |
|
(c) A temporary license expires on the 60th day after the |
|
date the license is issued. A temporary license may not be renewed. |
|
SECTION 3.16. Sections 1603.203 and 1603.204, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 1603.203. PROVISIONAL [CERTIFICATE OR] LICENSE. (a) |
|
The department may issue a provisional [certificate or] license to |
|
an applicant currently licensed in another jurisdiction who seeks a |
|
[certificate or] license in this state and who: |
|
(1) has been licensed in good standing in the |
|
profession for which the person seeks the [certificate or] license |
|
for at least two years in another jurisdiction, including a foreign |
|
country, that has requirements substantially equivalent to the |
|
requirements of this chapter [, Chapter 1601, or Chapter 1602, as |
|
appropriate]; and |
|
(2) has passed a national or other examination |
|
recognized by the department [commission] relating to the practice |
|
of that profession. |
|
(b) A provisional [certificate or] license is valid until |
|
the date the department approves or denies the provisional |
|
[certificate or] license holder's application. The department |
|
shall issue a [certificate or] license to the provisional |
|
[certificate or] license holder if: |
|
(1) the provisional [certificate or] license holder is |
|
eligible to hold a [certificate or] license under this chapter |
|
[Chapter 1601 or Chapter 1602]; or |
|
(2) the provisional [certificate or] license holder |
|
passes the part of the examination [under Chapter 1601 or Chapter |
|
1602] that relates to the applicant's knowledge and understanding |
|
of the laws and rules relating to the practice of the profession in |
|
this state and: |
|
(A) the department verifies that the provisional |
|
[certificate or] license holder meets the education [academic] and |
|
experience requirements for the [certificate or] license; and |
|
(B) the provisional [certificate or] license |
|
holder satisfies any other [certificate or] license requirements. |
|
(c) The department must approve or deny a provisional |
|
[certificate or] license holder's application for a [certificate |
|
or] license not later than the 180th day after the date the |
|
provisional [certificate or] license is issued. The department may |
|
extend the 180-day period if the results of an examination have not |
|
been received by the department before the end of that period. |
|
Sec. 1603.204. SUBSTANTIALLY EQUIVALENT [RECIPROCAL |
|
CERTIFICATE,] LICENSE[, OR PERMIT]. (a) A person who holds a |
|
license[, certificate, or permit] to practice barbering or |
|
cosmetology from another state or country that has standards or |
|
work experience requirements that are substantially equivalent to |
|
the requirements of this chapter [, Chapter 1601, or Chapter 1602] |
|
may apply for a license[, certificate, or permit] to perform the |
|
same acts of barbering or cosmetology in this state that the person |
|
practiced in the other state or country. |
|
(b) The person must: |
|
(1) submit an application for the license[, |
|
certificate, or permit] to the department; and |
|
(2) pay fees in an amount prescribed by the |
|
commission, including any applicable license[, certificate, or |
|
permit] fee. |
|
(c) A person issued a license[, certificate, or permit] |
|
under this section: |
|
(1) may perform the acts of barbering or cosmetology |
|
authorized by [stated on] the license[, certificate, or permit]; |
|
and |
|
(2) is subject to the renewal procedures and fees |
|
provided in this chapter [, Chapter 1601, or Chapter 1602] for the |
|
performance of those acts of barbering or cosmetology. |
|
SECTION 3.17. Sections 1603.208(a)(2) and (3), Occupations |
|
Code, are amended to read as follows: |
|
(2) "Digitally prearranged remote service" means a |
|
barbering or cosmetology service performed for compensation by a |
|
person holding a license[, certificate of registration, or permit] |
|
under Subchapter E-1 [Chapter 1601 or 1602 or this chapter] that is: |
|
(A) prearranged through a digital network; and |
|
(B) performed at a location other than an |
|
establishment [a place of business that is] licensed [or permitted] |
|
under Subchapter E-2 [Chapter 1601 or 1602 or this chapter]. |
|
(3) "Remote service business" means a corporation, |
|
partnership, sole proprietorship, or other entity that, for |
|
compensation, enables a client to schedule a digitally prearranged |
|
remote service with a person holding a license[, certificate of |
|
registration, or permit] under Subchapter E-1 [Chapter 1601 or 1602 |
|
or this chapter]. |
|
SECTION 3.18. Sections 1603.208(c), (d), (f), (g), and (i), |
|
Occupations Code, are amended to read as follows: |
|
(c) Sections 1603.2108 and 1603.2109 [1601.453, 1601.455, |
|
1602.251(c), and 1602.407] do not apply to a digitally prearranged |
|
remote service scheduled through a remote service business. |
|
(d) A person who holds a license[, certificate of |
|
registration, or permit] to practice barbering or cosmetology and |
|
who performs a digitally prearranged remote service shall: |
|
(1) comply with this section and the rules adopted |
|
under this section; and |
|
(2) practice within the scope of the person's |
|
license[, certificate of registration, or permit]. |
|
(f) Before a person licensed[, registered, or permitted] to |
|
practice barbering or cosmetology performs a digitally prearranged |
|
remote service for a client requesting the service, a remote |
|
service business must [shall] provide through the entity's digital |
|
network: |
|
(1) the following information regarding the person who |
|
will perform the service: |
|
(A) the person's first and last name; |
|
(B) the [number of the] person's license number[, |
|
certificate of registration, or permit, as applicable]; and |
|
(C) a photograph of the person; |
|
(2) the following information regarding the business: |
|
(A) Internet website address; and |
|
(B) telephone number; and |
|
(3) the department's Internet website address and |
|
telephone number and notice that the client may contact the |
|
department to file a complaint against the business or person. |
|
(g) Within a reasonable time after completion of a digitally |
|
prearranged remote service, the remote service business shall issue |
|
to the client who requested the service a receipt that includes: |
|
(1) the date the service was provided; |
|
(2) a description of the service; |
|
(3) the first and last name of the person who performed |
|
the service; |
|
(4) the [number of the] person's license number[, |
|
certificate of registration, or permit, as applicable]; |
|
(5) the following information regarding the business: |
|
(A) Internet website address; and |
|
(B) telephone number; and |
|
(6) the department's Internet website address and |
|
telephone number and notice that the client may contact the |
|
department to file a complaint against the business or person. |
|
(i) A remote service business shall terminate a person's |
|
access to the business's digital network if the business or |
|
department determines the person violated: |
|
(1) this chapter; or |
|
(2) a rule adopted under this chapter[; |
|
[(3) Chapter 1601 or 1602; or |
|
[(4) a rule adopted under Chapter 1601 or 1602]. |
|
SECTION 3.19. Subchapter E, Chapter 1603, Occupations Code, |
|
is amended by adding Section 1603.209 to read as follows: |
|
Sec. 1603.209. INFECTIOUS AND CONTAGIOUS DISEASES. (a) A |
|
person holding a license or permit issued under Subchapter E-1 may |
|
not perform any practice of barbering or cosmetology if the person |
|
knows the person is suffering from an infectious or contagious |
|
disease for which the person is not entitled to protection under the |
|
federal Americans with Disabilities Act of 1990 (42 U.S.C. Section |
|
12101 et seq.). |
|
(b) A person holding an establishment or school license may |
|
not employ a person to perform any practice of barbering or |
|
cosmetology or to instruct in the practice of barbering or |
|
cosmetology if the license holder knows that the person is |
|
suffering from an infectious or contagious disease for which the |
|
person is not entitled to protection under the federal Americans |
|
with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.). |
|
SECTION 3.20. Chapter 1603, Occupations Code, is amended by |
|
adding Subchapters E-1, E-2, and E-3 to read as follows: |
|
SUBCHAPTER E-1. INDIVIDUAL PRACTITIONER LICENSES; STUDENT PERMIT; |
|
PRACTICE |
|
Sec. 1603.2101. INDIVIDUAL PRACTITIONER LICENSE OR STUDENT |
|
PERMIT REQUIRED; USE OF CERTAIN TERMS WITHOUT LICENSE PROHIBITED. |
|
(a) A person may not perform or offer or attempt to perform any act |
|
of barbering or cosmetology unless the person holds a license or |
|
permit issued under this subchapter to perform that act. |
|
(b) Unless the person holds an appropriate license issued |
|
under this subchapter, a person may not directly or indirectly use |
|
or cause to be used as a professional or business identification, |
|
title, name, representation, asset, or means of advantage or |
|
benefit: |
|
(1) the term "barber" or "barbering"; |
|
(2) the term "cosmetologist" or "cosmetology"; or |
|
(3) any combination, variation, or abbreviation of the |
|
terms listed in Subdivisions (1) and (2). |
|
Sec. 1603.2102. ISSUANCE OF INDIVIDUAL PRACTITIONER |
|
LICENSE. The department shall issue an individual practitioner |
|
license to an applicant who: |
|
(1) meets the applicable eligibility requirements; |
|
(2) passes the applicable examination; |
|
(3) pays the required fee; |
|
(4) has not committed an act that constitutes a ground |
|
for denial of the license; and |
|
(5) submits an application on a form prescribed by the |
|
department. |
|
Sec. 1603.2103. INDIVIDUAL PRACTITIONER LICENSES. (a) A |
|
person holding: |
|
(1) a Class A barber license may perform any barbering |
|
service; |
|
(2) a cosmetology operator license may perform any |
|
cosmetology service; |
|
(3) a manicurist license may perform any service |
|
described by Section 1603.0011(a)(7) or (8); |
|
(4) an esthetician license may perform any service |
|
described by Section 1603.0011(a)(3), (4), (5), or (6) or (c); |
|
(5) a manicurist/esthetician license may perform any |
|
service described by Section 1603.0011(a)(3), (4), (5), (6), (7), |
|
or (8) or (c); |
|
(6) a hair weaving specialist license may perform any |
|
service described by Section 1603.0011(a)(9); |
|
(7) a hair weaving specialist/esthetician license may |
|
perform any service described by Section 1603.0011(a)(3), (4), (5), |
|
(6), or (9) or (c); and |
|
(8) an eyelash extension specialist license may |
|
perform any service described by Section 1603.0011(c). |
|
(b) The commission by rule shall provide for the issuance |
|
of: |
|
(1) a Class A barber license to a person who holds a |
|
cosmetology operator license; and |
|
(2) a cosmetology operator license to a person who |
|
holds a Class A barber license. |
|
Sec. 1603.2104. WAIVER OF CERTAIN LICENSE REQUIREMENTS. |
|
(a) The department may waive any requirement for a license issued |
|
under this subchapter for an applicant holding a license from |
|
another jurisdiction that has license requirements substantially |
|
equivalent to those of this state. |
|
(b) The department shall issue a license to an applicant |
|
under Subsection (a) if the applicant: |
|
(1) submits an application on a form prescribed by the |
|
department; |
|
(2) pays the application fee; and |
|
(3) provides proof that the applicant holds a current |
|
license to engage in the same or a similar activity issued by |
|
another jurisdiction that has license requirements substantially |
|
equivalent to those of this state. |
|
(c) The department may not require a personal interview as |
|
part of the application process under this section. |
|
(d) A license issued under this section may be renewed as |
|
provided by Subchapter G. |
|
Sec. 1603.2105. STUDENT PERMIT. (a) A student enrolled in |
|
a school licensed under Subchapter E-3 must hold a permit stating |
|
the student's name and the name of the school. |
|
(b) The department shall issue a student permit to an |
|
applicant who submits an application to the department for a |
|
student permit accompanied by the required fee. |
|
(c) A separate application is required for each enrollment. |
|
The application fee applies only to the first enrollment. The |
|
department may not charge the application fee for any later |
|
enrollment. |
|
Sec. 1603.2106. TRANSFER OF LICENSE OR PERMIT PROHIBITED. |
|
A license or permit issued under this subchapter is not |
|
transferable. |
|
Sec. 1603.2107. DISPLAY OF LICENSE OR PERMIT. (a) The |
|
holder of a license issued under this subchapter shall: |
|
(1) display the original license and an attached |
|
photograph of the license holder in a conspicuous place near the |
|
license holder's work chair in the establishment in which the |
|
holder is working; or |
|
(2) make available at the reception desk of the |
|
establishment in which the holder is working, in the manner |
|
prescribed by the department: |
|
(A) the original license and an attached |
|
photograph of the license holder; or |
|
(B) a digital image of the license and photograph |
|
of the license holder. |
|
(b) The holder of a student permit issued under this |
|
subchapter shall display the permit in a reasonable manner at the |
|
school in which the permit holder is enrolled. |
|
Sec. 1603.2108. LOCATION OF PRACTICE. A person holding a |
|
license or permit issued under this subchapter may practice |
|
barbering or cosmetology only at a licensed establishment or |
|
school. |
|
Sec. 1603.2109. SERVICE AT UNLICENSED LOCATION. (a) In |
|
this section, "licensed facility" means: |
|
(1) an establishment licensed under Subchapter E-2; or |
|
(2) a school licensed under Subchapter E-3. |
|
(b) A person holding a license under this subchapter may |
|
perform a service within the scope of the license at a location |
|
other than a licensed facility for a client: |
|
(1) who, because of illness or physical or mental |
|
incapacitation, is unable to receive the service at a licensed |
|
facility; or |
|
(2) in preparation for and at the location of a special |
|
event, including a wedding. |
|
(c) An appointment for a service performed under this |
|
section must be made through a licensed facility. |
|
SUBCHAPTER E-2. ESTABLISHMENT LICENSES; OPERATION |
|
Sec. 1603.2201. LICENSE REQUIRED. (a) A person may not |
|
own, operate, or manage an establishment in which an act of |
|
barbering or cosmetology is practiced unless the person holds a |
|
license issued under this subchapter to operate the establishment. |
|
(b) A person may not lease space on the premises of a |
|
licensed establishment to engage in the practice of barbering or |
|
cosmetology as an independent contractor unless the person holds a |
|
license issued under Subchapter E-1. |
|
Sec. 1603.2202. ISSUANCE OF LICENSE. The department shall |
|
issue the applicable establishment license under this subchapter to |
|
an applicant if: |
|
(1) the applicant: |
|
(A) owns or rents the establishment; |
|
(B) verifies the application; |
|
(C) complies with the application requirements |
|
of this chapter; |
|
(D) pays the required inspection and license |
|
fees; and |
|
(E) has not committed an act that constitutes a |
|
ground for denial of a license; and |
|
(2) the establishment: |
|
(A) meets the commission's minimum health |
|
standards for an establishment; and |
|
(B) complies with all commission rules. |
|
Sec. 1603.2203. ESTABLISHMENT LICENSES. (a) An |
|
establishment licensed as: |
|
(1) an establishment may provide any barbering or |
|
cosmetology service; |
|
(2) a manicurist specialty establishment may provide |
|
any service described by Section 1603.0011(a)(7) or (8); |
|
(3) an esthetician specialty establishment may |
|
provide any service described by Section 1603.0011(a)(3), (4), (5), |
|
or (6) or (c); |
|
(4) a manicurist/esthetician specialty establishment |
|
may provide any service described by Section 1603.0011(a)(3), (4), |
|
(5), (6), (7), or (8) or (c); |
|
(5) a hair weaving specialty establishment may provide |
|
any service described by Section 1603.0011(a)(9); |
|
(6) an eyelash extension specialty establishment may |
|
provide any service described by Section 1603.0011(c); |
|
(7) a mini-establishment may provide any barbering or |
|
cosmetology service; and |
|
(8) a mobile establishment may provide any barbering |
|
or cosmetology service. |
|
(b) In this section: |
|
(1) "Mini-establishment" includes a room or suite of |
|
rooms that is one of a number of connected establishments in a |
|
single premises that open onto a common hallway or another |
|
configuration of operations as authorized by the department in |
|
which a person practices under a license issued under Subchapter |
|
E-1. |
|
(2) "Mobile establishment" means a facility that is |
|
readily movable and where barbering, cosmetology, or both are |
|
practiced other than at a fixed location. |
|
Sec. 1603.2204. TRANSFER OF LICENSE PROHIBITED. A license |
|
issued under this subchapter is not transferable. |
|
Sec. 1603.2205. USE OF ESTABLISHMENT AS SLEEPING QUARTERS |
|
PROHIBITED. (a) An owner or manager of a licensed establishment |
|
may not permit a person to sleep in a room used as part of the |
|
establishment. |
|
(b) A person may not perform an act for which a license is |
|
required in a room in an establishment that is used as sleeping |
|
quarters. |
|
SUBCHAPTER E-3. SCHOOL LICENSES; OPERATION |
|
Sec. 1603.2301. LICENSE REQUIRED. A person may not operate |
|
a school for instruction in the practice of barbering or |
|
cosmetology unless the person holds a license issued under this |
|
subchapter to operate the school. |
|
Sec. 1603.2302. ISSUANCE OF LICENSE. The department shall |
|
issue a license under this subchapter to an applicant who, as |
|
applicable: |
|
(1) submits an application on a form prescribed by the |
|
department; |
|
(2) pays the required fee; |
|
(3) provides to the department adequate proof of |
|
financial responsibility; |
|
(4) meets the health and safety standards established |
|
by the commission; and |
|
(5) satisfies any other requirements of this chapter |
|
or commission rule. |
|
Sec. 1603.2303. SCHOOL LICENSES; INSTRUCTORS; ENFORCEMENT. |
|
(a) The holder of a public secondary school license, public |
|
postsecondary school license, or private postsecondary school |
|
license: |
|
(1) may provide instruction in the barbering or |
|
cosmetology services for which the license holder has been approved |
|
by the department; and |
|
(2) may only employ to provide the instruction |
|
described by Subdivision (1) a person who holds a license issued |
|
under Subchapter E-1 to perform the acts of barbering or |
|
cosmetology for which the person will provide instruction. |
|
(b) The department may take any disciplinary or other |
|
enforcement action against a person who violates Subsection (a)(2). |
|
Sec. 1603.2304. CHANGE OF SCHOOL OWNERSHIP OR LOCATION. |
|
(a) If a licensed school changes ownership: |
|
(1) the outgoing owner shall notify the department of |
|
the change not later than the 10th day before the date the change |
|
takes effect; and |
|
(2) the new owner shall obtain a license under this |
|
subchapter in accordance with commission rule. |
|
(b) A school may not change the location of the school |
|
unless the school obtains approval from the department before the |
|
change by showing that the proposed location meets the requirements |
|
of this chapter and commission rules. |
|
Sec. 1603.2305. SIGNS REQUIRED. The holder of a school |
|
license shall place a sign on the front outside portion of the |
|
school's building in a prominent place that reads "SCHOOL--STUDENT |
|
PRACTITIONERS" in: |
|
(1) at least 10-inch block letters; or |
|
(2) a manner prescribed by the department. |
|
Sec. 1603.2306. INFORMATION PROVIDED TO PROSPECTIVE |
|
STUDENT. The holder of a school license shall provide to each |
|
prospective student, as applicable: |
|
(1) a course outline; |
|
(2) a schedule of the tuition and other fees assessed; |
|
(3) the school's refund policy required under Section |
|
1603.3602; |
|
(4) the school's grading policy and rules relating to |
|
incomplete grades; |
|
(5) the school's rules of operation and conduct, |
|
including rules relating to absences; |
|
(6) the department's name, mailing address, and |
|
telephone number for the purpose of directing complaints to the |
|
department; and |
|
(7) the current job placement rates and employment |
|
rates of students who complete a course of instruction. |
|
Sec. 1603.2307. COURSE LENGTH AND CURRICULUM CONTENT. (a) |
|
A school shall design course length and curriculum content to |
|
reasonably ensure that a student develops the job skills and |
|
knowledge necessary for employment. |
|
(b) A school must submit to the department for approval the |
|
course length and curriculum content for each course offered by the |
|
school. The school may not implement a course length and curriculum |
|
content without the approval of the department. |
|
(c) Before issuing or renewing a license under this |
|
subchapter, the department must require the school to account for |
|
each course length and curriculum content. |
|
Sec. 1603.2308. REQUIRED COURSES. (a) A school shall |
|
instruct students in the theory and practice of subjects necessary |
|
and beneficial to the practice of barbering and cosmetology. |
|
(b) The commission by rule shall establish the subjects in |
|
which students shall receive instruction. |
|
(c) A school may not increase, decrease, or withhold for any |
|
reason the number of hours earned by a student. |
|
Sec. 1603.2309. DAILY ATTENDANCE RECORDS. (a) A school |
|
shall maintain an attendance record showing the students' daily |
|
attendance. |
|
(b) The department may inspect a school's attendance |
|
records at any time. |
|
Sec. 1603.2310. INSTRUCTOR-TO-STUDENT RATIO. A licensed |
|
school must have at least one instructor for every 25 students on |
|
the school's premises. |
|
Sec. 1603.2311. REPORTS TO DEPARTMENT. (a) A licensed |
|
school shall maintain a monthly progress report regarding each |
|
student attending the school. The report must certify the daily |
|
attendance record of each student and the number of hours earned by |
|
each student during the previous month. |
|
(b) On a student's completion of a prescribed course of |
|
instruction, the school shall notify the department that the |
|
student has completed the required number of hours and is eligible |
|
to take the appropriate examination. |
|
(c) The holder of a school license shall provide to the |
|
department on request: |
|
(1) the current course completion rates of students |
|
who attend a course of instruction offered by the school; and |
|
(2) job placement rates and employment rates of |
|
students who complete a course of instruction. |
|
Sec. 1603.2312. ADDITIONAL DUTIES OF LICENSE HOLDER. The |
|
holder of a school license shall: |
|
(1) maintain a sanitary premises; |
|
(2) establish regular class and instruction hours and |
|
grades; |
|
(3) hold examinations before issuing diplomas; and |
|
(4) maintain a copy of the school's curriculum in a |
|
conspicuous place and verify that the curriculum is being followed. |
|
Sec. 1603.2313. TRANSFER OF HOURS OF INSTRUCTION. (a) A |
|
student at a licensed school may transfer completed hours of |
|
instruction to another licensed school in this state. |
|
(b) In order for the hours of instruction to be transferred, |
|
a transcript showing the completed courses and number of hours |
|
certified by the school in which the instruction was given must be |
|
submitted to the department. |
|
(c) In evaluating a student's transcript, the department |
|
shall determine whether the agreed tuition has been paid. If the |
|
tuition has not been paid, the department shall notify the student |
|
that the student's transcript cannot be certified to the school to |
|
which the student seeks a transfer until proof is provided that the |
|
tuition has been paid. |
|
(d) On evaluation and approval, the department shall |
|
certify in writing to the student and to the school to which the |
|
student seeks a transfer that: |
|
(1) the stated courses and hours have been |
|
successfully completed; and |
|
(2) the student is not required to repeat the hours of |
|
instruction. |
|
Sec. 1603.2314. IDENTIFICATION OF AND WORK PERFORMED BY |
|
STUDENT. (a) Each licensed school shall maintain in a conspicuous |
|
place a list of the names and identifying pictures of the students |
|
who are enrolled in the school's courses. |
|
(b) A school may not receive compensation for work done by a |
|
student unless the student has completed 10 percent of the required |
|
number of hours for a license under Subchapter E-1. |
|
(c) If a school violates this section, the license of the |
|
school may be revoked or suspended. |
|
SECTION 3.21. Section 1603.252(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The executive director shall determine uniform |
|
standards for acceptable performance on an examination for a |
|
license under Subchapter E-1 [or certificate under Chapter 1601 and |
|
for a license or certificate under Chapter 1602]. |
|
SECTION 3.22. Sections 1603.253 and 1603.255, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 1603.253. WRITTEN EXAMINATION. The department |
|
[commission] shall select an examination for each written |
|
examination required under this chapter[, Chapter 1601, or Chapter |
|
1602]. The written examination must be: |
|
(1) validated by an independent testing professional; |
|
or |
|
(2) purchased from a national testing service. |
|
Sec. 1603.255. EARLY EXAMINATION. The commission by rule |
|
[department] may allow for the early written examination of a |
|
student [who has completed the following number of hours of |
|
instruction in a department-approved training program: |
|
[(1) 1,000 hours for a student seeking a Class A barber |
|
certificate in a private barber school; |
|
[(2) 900 hours for a student seeking an operator |
|
license in a private cosmetology school; or |
|
[(3) 900 hours for a student seeking a Class A barber |
|
certificate or operator license in a publicly funded barber or |
|
cosmetology school]. |
|
SECTION 3.23. Sections 1603.256(a) and (c), Occupations |
|
Code, are amended to read as follows: |
|
(a) The commission may require a practical examination as it |
|
considers necessary for a license [or certificate] issued under |
|
Subchapter E-1 [Chapter 1601 or 1602]. |
|
(c) The following persons may administer a practical |
|
examination [required under this subchapter]: |
|
(1) the department; |
|
(2) a person with whom the department contracts under |
|
Section 1603.252; |
|
(3) a licensed [barber] school[, private beauty |
|
culture school, or a public secondary or postsecondary beauty |
|
culture school] that is approved by the department to administer |
|
the examination under Section 1603.252; or |
|
(4) the Windham School District. |
|
SECTION 3.24. Subchapter G, Chapter 1603, Occupations Code, |
|
is amended to read as follows: |
|
SUBCHAPTER G. [CERTIFICATE,] LICENSE[, AND PERMIT] RENEWAL |
|
Sec. 1603.3001. LICENSE TERMS. (a) Except as provided by |
|
Subsection (b), a license other than a temporary license expires on |
|
the second anniversary of the date the license is issued. |
|
(b) A school license expires on the first anniversary of the |
|
date the license is issued. |
|
Sec. 1603.3002. RENEWAL RULES. (a) The commission by rule |
|
may establish requirements for the renewal of a license issued |
|
under this chapter, including continuing education requirements. |
|
(b) The commission may establish separate requirements for: |
|
(1) the initial renewal of a license; and |
|
(2) subsequent renewals of a license. |
|
(c) Before establishing continuing education requirements |
|
under this section, the commission must consider the potential |
|
impact of continuing education with respect to: |
|
(1) identifying and assisting trafficked persons; and |
|
(2) providing license holders with opportunities to |
|
acquire new skills. |
|
Sec. 1603.3003. ISSUANCE OF RENEWAL LICENSE. The |
|
department shall issue a renewal license on receipt of: |
|
(1) a renewal application in the form prescribed by |
|
the department; and |
|
(2) any renewal fee. |
|
Sec. 1603.3004. RENEWAL WHILE IN ARMED FORCES. (a) The |
|
department may not require the holder of a license issued under |
|
Subchapter E-1 who is serving on active duty in the United States |
|
armed forces to renew the person's license. |
|
(b) The department shall issue a renewal license on |
|
application and payment of the required renewal fee not later than |
|
the 90th day after the date the person is released or discharged |
|
from active duty in the United States armed forces. |
|
Sec. 1603.301. DENIAL OF RENEWAL DUE TO ADMINISTRATIVE |
|
PENALTY. The department may deny a person's request to renew a |
|
[certificate,] license[, or permit] issued under this chapter[, |
|
Chapter 1601, or Chapter 1602] if the person has not paid an |
|
administrative penalty imposed under Subchapter F, Chapter |
|
51. This section does not apply if: |
|
(1) the person's time to pay or request a hearing has |
|
not expired under Section 51.304; |
|
(2) the person has requested a hearing under Section |
|
51.304, but the person's time to pay has not expired under Section |
|
51.307; or |
|
(3) the penalty is stayed. |
|
SECTION 3.25. The heading to Subchapter H, Chapter 1603, |
|
Occupations Code, is amended to read as follows: |
|
SUBCHAPTER H. PRACTICE PROVISIONS APPLICABLE TO MORE THAN ONE |
|
LICENSE TYPE [CHAPTERS 1601 AND 1602] |
|
SECTION 3.26. Section 1603.351, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1603.351. MINIMUM CURRICULUM FOR SCHOOLS; DISTANCE |
|
EDUCATION. (a) The commission shall prescribe the minimum |
|
curriculum, including the subjects and the number of hours in each |
|
subject, taught by a licensed school [licensed under this chapter, |
|
Chapter 1601, or Chapter 1602]. |
|
(a-1) Notwithstanding any other law, the commission may |
|
adopt rules to: |
|
(1) authorize a licensed school [licensed under this |
|
chapter, Chapter 1601, or Chapter 1602] to account for any hours of |
|
instruction completed under this chapter [those chapters] on the |
|
basis of clock hours or credit hours; and |
|
(2) establish standards for determining the |
|
equivalency and conversion of clock hours to credit hours and |
|
credit hours to clock hours. |
|
(b) The commission may adopt rules allowing distance |
|
education only for the theory portion of the curriculum taught by a |
|
licensed school [licensed under this chapter, Chapter 1601, or |
|
Chapter 1602]. |
|
(c) Distance education does not satisfy the requirements of |
|
the practical portion of the curriculum taught by a licensed school |
|
[licensed under this chapter, Chapter 1601, or Chapter 1602]. |
|
SECTION 3.27. Sections 1603.352(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) A person who holds a license[, certificate,] or permit |
|
issued under this chapter[, Chapter 1601, or Chapter 1602] and who |
|
performs a [barbering service described by Section 1601.002(1)(E) |
|
or (F) or a cosmetology] service described by Section |
|
1603.0011(a)(7) or (8) [1602.002(a)(8) or (9)] shall, before |
|
performing the service, clean, disinfect, and sterilize with an |
|
autoclave or dry heat sterilizer or sanitize with an ultraviolet |
|
sanitizer, in accordance with the sterilizer or sanitizer |
|
manufacturer's instructions, each metal instrument, including |
|
metal nail clippers, cuticle pushers, cuticle nippers, and other |
|
metal instruments, used to perform the service. |
|
(b) The owner or manager of a licensed establishment or |
|
[barber shop, barber] school[, beauty shop, specialty shop, beauty |
|
culture school, or other facility licensed under this chapter, |
|
Chapter 1601, or Chapter 1602,] is responsible for providing an |
|
autoclave, a dry heat sterilizer, or an ultraviolet sanitizer for |
|
use in the establishment [shop] or school as required by Subsection |
|
(a). |
|
SECTION 3.28. Subchapter H, Chapter 1603, Occupations Code, |
|
is amended by adding Sections 1603.353, 1603.354, 1603.355, |
|
1603.356, 1603.357, and 1603.358 to read as follows: |
|
Sec. 1603.353. EMPLOYMENT OF LICENSE HOLDER. (a) A |
|
licensed school may not employ a person holding a license issued |
|
under Subchapter E-1 solely to perform the practices of barbering |
|
or cosmetology for which the person is licensed. |
|
(b) A person holding a license for an establishment may not |
|
employ or lease to a person to practice barbering or cosmetology at |
|
the establishment unless the person holds a license issued under |
|
Subchapter E-1. |
|
Sec. 1603.354. NECESSARY EQUIPMENT. The owner, operator, |
|
or manager of a licensed establishment or school shall equip the |
|
establishment or school with the facilities, supplies, appliances, |
|
furnishings, and materials necessary to enable a person employed on |
|
the premises to comply with this chapter. |
|
Sec. 1603.355. DISPLAY OF LICENSE. A licensed school or |
|
establishment shall display the license in a conspicuous place in |
|
the school or establishment for which the license is issued. |
|
Sec. 1603.356. DISPLAY OF HUMAN TRAFFICKING INFORMATION. |
|
(a) A licensed school or establishment shall display a sign |
|
approved by or acceptable to the commission or the department |
|
concerning services and assistance available to victims of human |
|
trafficking. |
|
(b) The sign required by this section must: |
|
(1) be in English, Spanish, Vietnamese, and any other |
|
language required by commission rule; and |
|
(2) include a toll-free telephone number of a |
|
nationally recognized information and referral hotline for victims |
|
of human trafficking. |
|
(c) The commission by rule shall establish requirements |
|
regarding the posting of signs under this section. |
|
Sec. 1603.357. DISPLAY OF SANITATION RULES. A licensed |
|
school or establishment shall display a copy of the commission's |
|
sanitation rules. |
|
Sec. 1603.358. OPERATION OF ESTABLISHMENT AND SCHOOL ON |
|
SINGLE PREMISES. A person may not operate an establishment on the |
|
same premises as a school unless the facilities are separated by |
|
walls of permanent construction without an opening between the |
|
facilities. |
|
SECTION 3.29. Chapter 1603, Occupations Code, is amended by |
|
adding Subchapter H-1 to read as follows: |
|
SUBCHAPTER H-1. FINANCIAL PROVISIONS APPLICABLE TO PRIVATE |
|
POSTSECONDARY SCHOOLS |
|
Sec. 1603.3601. CANCELLATION AND SETTLEMENT POLICY. The |
|
holder of a private postsecondary school license shall maintain a |
|
cancellation and settlement policy that provides a full refund of |
|
money paid by a student if the student: |
|
(1) cancels the enrollment agreement or contract not |
|
later than midnight of the third day after the date the agreement or |
|
contract is signed by the student, excluding Saturdays, Sundays, |
|
and legal holidays; or |
|
(2) entered into the enrollment agreement or contract |
|
because of a misrepresentation made: |
|
(A) in the advertising or promotional materials |
|
of the school; or |
|
(B) by an owner or representative of the school. |
|
Sec. 1603.3602. REFUND POLICY. (a) The holder of a private |
|
postsecondary school license shall maintain a refund policy to |
|
provide for the refund of any unused parts of tuition, fees, and |
|
other charges paid by a student who, at the expiration of the |
|
cancellation period established under Section 1603.3601: |
|
(1) fails to enter the course of training; |
|
(2) withdraws from the course of training; or |
|
(3) is terminated from the course of training before |
|
completion of the course. |
|
(b) The refund policy must provide that: |
|
(1) the refund is based on the period of the student's |
|
enrollment, computed on the basis of course time expressed in |
|
scheduled hours, as specified by an enrollment agreement, contract, |
|
or other document acceptable to the department; |
|
(2) the effective date of the termination for refund |
|
purposes is the earliest of: |
|
(A) the last date of attendance, if the student |
|
is terminated by the school; |
|
(B) the date the license holder receives the |
|
student's written notice of withdrawal; or |
|
(C) 10 school days after the last date of |
|
attendance; and |
|
(3) the school may retain not more than $100 if: |
|
(A) tuition is collected before the course of |
|
training begins; and |
|
(B) the student does not begin the course of |
|
training before the cancellation period established under Section |
|
1603.3601 expires. |
|
Sec. 1603.3603. WITHDRAWAL OR TERMINATION OF STUDENT. (a) |
|
If a student at a private postsecondary school begins a course of |
|
training that is scheduled to run not more than 12 months and, |
|
during the last 50 percent of the course, withdraws from the course |
|
or is terminated by the school, the school: |
|
(1) may retain 100 percent of the tuition and fees paid |
|
by the student; and |
|
(2) is not obligated to refund any additional |
|
outstanding tuition. |
|
(b) If a student at a private postsecondary school begins a |
|
course of training that is scheduled to run not more than 12 months |
|
and, before the last 50 percent of the course, withdraws from the |
|
course or is terminated by the school, the school shall refund: |
|
(1) 90 percent of any outstanding tuition for a |
|
withdrawal or termination that occurs during the first week or |
|
first 10 percent of the course, whichever period is shorter; |
|
(2) 80 percent of any outstanding tuition for a |
|
withdrawal or termination that occurs after the first week or first |
|
10 percent of the course, whichever period is shorter, but within |
|
the first three weeks of the course; |
|
(3) 75 percent of any outstanding tuition for a |
|
withdrawal or termination that occurs after the first three weeks |
|
of the course but not later than the completion of the first 25 |
|
percent of the course; and |
|
(4) 50 percent of any outstanding tuition for a |
|
withdrawal or termination that occurs not later than the completion |
|
of the first 50 percent of the course. |
|
(c) A refund owed under this section must be paid not later |
|
than the 30th day after the date the student becomes eligible for |
|
the refund. |
|
Sec. 1603.3604. INTEREST ON REFUND. (a) If tuition is not |
|
refunded within the period required by Section 1603.3603, the |
|
private postsecondary school shall pay interest on the amount of |
|
the refund for the period beginning the first day after the date the |
|
refund period expires and ending the day preceding the date the |
|
refund is made. |
|
(b) If tuition is refunded to a lending institution, the |
|
interest shall be paid to that institution and applied against the |
|
student's loan. |
|
(c) The commissioner of education shall annually set the |
|
interest rate at a rate sufficient to deter a school from retaining |
|
money paid by a student. |
|
(d) The department may exempt a school from the payment of |
|
interest if the school makes a good faith effort to refund the |
|
tuition but is unable to locate the student. The school shall |
|
provide to the department on request documentation of the effort to |
|
locate the student. |
|
Sec. 1603.3605. REENTRY OF STUDENT AFTER WITHDRAWAL. If a |
|
student voluntarily withdraws or is terminated after completing 50 |
|
percent of the course at a private postsecondary school, the school |
|
shall allow the student to reenter at any time during the 48-month |
|
period following the date of withdrawal or termination unless the |
|
student presents a danger to the other students or staff of the |
|
school. |
|
Sec. 1603.3606. EFFECT OF STUDENT WITHDRAWAL. (a) A |
|
private postsecondary school shall record a grade of incomplete for |
|
a student who withdraws but is not entitled to a refund under |
|
Section 1603.3603 if the student: |
|
(1) requests the grade at the time the student |
|
withdraws; and |
|
(2) withdraws for an appropriate reason unrelated to |
|
the student's academic status. |
|
(b) A student who receives a grade of incomplete may |
|
reenroll in the program during the 48-month period following the |
|
date the student withdraws and complete the subjects without |
|
payment of additional tuition. |
|
Sec. 1603.3607. EFFECT OF PRIVATE POSTSECONDARY SCHOOL |
|
CLOSURE. (a) If a private postsecondary school closes, the |
|
department shall attempt to arrange for students enrolled in the |
|
closed school to attend another private postsecondary school. |
|
(b) If a student from a closed school is placed in another |
|
private postsecondary school, the expense incurred by the school in |
|
providing training directly related to educating the student, |
|
including the applicable tuition for the period for which the |
|
student paid tuition, shall be paid from the barbering and |
|
cosmetology school tuition protection account. |
|
(c) If a student from a closed private postsecondary school |
|
cannot be placed in another private postsecondary school, the |
|
student's tuition and fees shall be refunded as provided by Section |
|
1603.3602. If a student from a closed private postsecondary school |
|
does not accept a place that is available and reasonable in another |
|
private postsecondary school, the student's tuition and fees shall |
|
be refunded as provided by Section 1603.3603. A refund under this |
|
subsection shall be paid from the barbering and cosmetology school |
|
tuition protection account. The amount of the refund may not exceed |
|
$35,000. |
|
(d) If another private postsecondary school assumes |
|
responsibility for the closed school's students and there are no |
|
significant changes in the quality of the training, the student |
|
from the closed school is not entitled to a refund under Subsection |
|
(c). |
|
Sec. 1603.3608. BARBERING AND COSMETOLOGY SCHOOL TUITION |
|
PROTECTION ACCOUNT. (a) If on January 1 of any year the amount in |
|
the barbering and cosmetology school tuition protection account is |
|
less than $225,000, the department shall collect a fee from each |
|
private postsecondary school during that year by applying a |
|
percentage to the school's renewal fee at a rate that will bring the |
|
balance of the account to $225,000. |
|
(b) The department shall administer claims made against the |
|
account. |
|
(c) The comptroller shall invest the account in the same |
|
manner as other state funds. |
|
(d) Sufficient money from the account shall be appropriated |
|
to the department for the purpose described by Section 1603.3607. |
|
(e) Attorney's fees, court costs, or damages may not be paid |
|
from the account. |
|
Sec. 1603.3609. RULES. The commission by rule may: |
|
(1) adjust any tuition reimbursement limit |
|
established under this subchapter; and |
|
(2) adopt procedures regarding the collection of fees |
|
from private postsecondary schools under Section 1603.3608. |
|
SECTION 3.30. Section 1603.401, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1603.401. DENIAL, SUSPENSION, OR REVOCATION. The |
|
department may [shall] deny an application for issuance or renewal |
|
of, or may [shall] suspend or revoke, a [certificate,] license[,] |
|
or permit if the applicant or person holding the [certificate,] |
|
license[,] or permit: |
|
(1) engages in gross malpractice; |
|
(2) knowingly continues to practice while having an |
|
infectious or contagious disease; |
|
(3) knowingly makes a false or deceptive statement in |
|
advertising; |
|
(4) advertises, practices, or attempts to practice |
|
under another person's name or trade name; |
|
(5) engages in fraud or deceit in obtaining a |
|
[certificate,] license[,] or permit; or |
|
(6) engages in an act that violates this chapter or [,] |
|
Chapter 51[, Chapter 1601, or Chapter 1602] or a rule or order |
|
adopted or issued under this chapter or Chapter 51 [those |
|
chapters]. |
|
SECTION 3.31. The heading to Subchapter J, Chapter 1603, |
|
Occupations Code, is amended to read as follows: |
|
SUBCHAPTER J. OTHER [PENALTIES AND] ENFORCEMENT PROVISIONS |
|
SECTION 3.32. Sections 1603.453 and 1603.454, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 1603.453. APPEAL BOND NOT REQUIRED. The department is |
|
not required to give an appeal bond in a cause arising under this |
|
chapter[, Chapter 1601, or Chapter 1602]. |
|
Sec. 1603.454. ENFORCEMENT BY ATTORNEY GENERAL. The |
|
attorney general shall represent the department in an action to |
|
enforce this chapter[, Chapter 1601, or Chapter 1602]. |
|
SECTION 3.33. The following provisions of the Occupations |
|
Code are repealed: |
|
(1) Chapters 1601 and 1602; |
|
(2) Sections 1603.104(b), (c), and (c-1); |
|
(3) Section 1603.205; |
|
(4) Section 1603.206; |
|
(5) Section 1603.207; |
|
(6) Section 1603.254; |
|
(7) Section 1603.451; |
|
(8) Section 1603.452; |
|
(9) Section 1603.455; and |
|
(10) Section 1603.456. |
|
SECTION 3.34. (a) To ensure that licensed schools offering |
|
instruction in barbering and cosmetology maintain accreditation |
|
and that students of those schools continue to qualify for federal |
|
aid, the Texas Commission of Licensing and Regulation shall, as |
|
soon as practicable after September 1, 2021, adopt any rules |
|
necessary for the orderly implementation of the changes in law made |
|
by this article to the licensing system and curricula requirements |
|
and standards for schools offering instruction in barbering and |
|
cosmetology. |
|
(b) Not later than September 1, 2023: |
|
(1) the Texas Commission of Licensing and Regulation |
|
shall adopt any additional rules necessary to implement the changes |
|
in law made by this article; and |
|
(2) the Texas Department of Licensing and Regulation |
|
shall begin to issue and renew licenses and permits under |
|
Subchapters E-1, E-2, and E-3, Chapter 1603, Occupations Code, as |
|
added by this article. |
|
SECTION 3.35. Notwithstanding the repeal by this article of |
|
Chapters 1601 and 1602, and Sections 1603.205, 1603.206, and |
|
1603.207, Occupations Code, the Texas Department of Licensing and |
|
Regulation may continue to issue until September 1, 2023, a |
|
certificate, license, or permit under those provisions as they |
|
existed immediately before September 1, 2021, and those provisions |
|
are continued in effect for that purpose. |
|
SECTION 3.36. Notwithstanding the repeal by this article of |
|
Chapters 1601 and 1602, Occupations Code, until the Texas |
|
Commission of Licensing and Regulation adopts rules regarding |
|
written and practical examination requirements for the issuance of |
|
licenses under Chapter 1603, Occupations Code, as amended by this |
|
article, the Texas Department of Licensing and Regulation shall |
|
continue to operate under the requirements regarding written and |
|
practical examinations in former Chapters 1601 and 1602, |
|
Occupations Code, as those chapters were in effect immediately |
|
before September 1, 2021, and those provisions are continued in |
|
effect for that purpose. |
|
SECTION 3.37. (a) A certificate, license, or permit issued |
|
under former Chapter 1601 or 1602, Occupations Code, or under |
|
former Section 1603.205, 1603.206, or 1603.207, Occupations Code, |
|
before September 1, 2023, continues to be valid until the |
|
certificate, license, or permit expires, and those chapters and |
|
sections are continued in effect for that purpose. |
|
(b) A person who on September 1, 2021, holds a certificate, |
|
license, or permit issued under former Chapter 1601 or 1602, |
|
Occupations Code, or under former Section 1603.205, 1603.206, or |
|
1603.207, Occupations Code, is entitled on expiration of that |
|
certificate, license, or permit to issuance of a comparable license |
|
or permit under the applicable provision of Chapter 1603, |
|
Occupations Code, as amended by this article, if the person |
|
otherwise meets the requirements for the license or permit. |
|
(c) A person who on September 1, 2021, holds an instructor |
|
license issued under former Chapter 1601 or 1602, Occupations Code, |
|
is entitled on expiration of that license to issuance of a license |
|
under the applicable provision of Chapter 1603, Occupations Code, |
|
as amended by this article, that is comparable to the individual |
|
practitioner license required for the issuance of the instructor |
|
license if the person otherwise meets the requirements for the |
|
license under Chapter 1603. |
|
SECTION 3.38. Notwithstanding any other law, on September |
|
1, 2021, a person holding a permit under former Subchapter G, |
|
Chapter 1601, Occupations Code, a facility license under former |
|
Subchapter G, Chapter 1602, Occupations Code, or a license or |
|
permit under former Section 1603.205, 1603.206, or 1603.207, |
|
Occupations Code, before September 1, 2021, may employ or contract |
|
with any qualified individual practitioner holding a certificate, |
|
license, or permit issued under Chapter 1601 or 1602, Occupations |
|
Code, before September 1, 2021, without regard to the chapter under |
|
which the practitioner was issued the certificate, license, or |
|
permit. |
|
SECTION 3.39. Notwithstanding any other law, on September |
|
1, 2021, the holder of a license issued under former Section |
|
1601.256, 1601.262, or 1601.263, Occupations Code, before that date |
|
may perform the services described by Sections 1603.0011(a)(6) and |
|
(c), Occupations Code, as added by this Act. |
|
SECTION 3.40. (a) Not later than December 1, 2021, the |
|
presiding officer of the Texas Commission of Licensing and |
|
Regulation shall appoint members to the Barbering and Cosmetology |
|
Advisory Board in accordance with Section 1603.051, Occupations |
|
Code, as amended by this article. |
|
(b) On December 1, 2021, the Advisory Board on Barbering and |
|
the Advisory Board on Cosmetology are abolished. |
|
(c) Notwithstanding Section 1603.053, Occupations Code, as |
|
added by this article, in making the initial appointments to the |
|
Barbering and Cosmetology Advisory Board, the presiding officer of |
|
the Texas Commission of Licensing and Regulation shall designate |
|
three members of the advisory board to serve terms expiring January |
|
31, 2023, three members to serve terms expiring January 31, 2025, |
|
and three members to serve terms expiring January 31, 2027. |
|
SECTION 3.41. As soon as practicable after September 1, |
|
2021, the comptroller of public accounts shall transfer to the |
|
barbering and cosmetology school tuition protection account the |
|
unexpended and unencumbered balance of the barber school tuition |
|
protection account and the unexpended and unencumbered balance of |
|
the private beauty culture school tuition protection account. |
|
SECTION 3.42. (a) The changes in law made by this article |
|
do not affect the validity of a disciplinary action or other |
|
proceeding that was initiated before September 1, 2021, and that is |
|
pending on September 1, 2021. A disciplinary action that is pending |
|
on September 1, 2021, is governed by the law in effect immediately |
|
before September 1, 2021, and the former law is continued in effect |
|
for that purpose. |
|
(b) The repeal of a law by this article does not entitle a |
|
person to a refund of a certificate, license, or permit fee paid by |
|
the person before September 1, 2021. |
|
ARTICLE 4. DRIVER TRAINING |
|
SECTION 4.01. Section 1001.001, Education Code, is amended |
|
by amending Subdivisions (2), (8), (9), (13), and (14) and adding |
|
Subdivisions (6-a), (6-b), (14-b), and (14-c) to read as follows: |
|
(2) "Classroom instruction" includes instruction |
|
provided in a traditional classroom setting or through other |
|
physical means or remotely through the Internet ["Approved driving |
|
safety course" means a driving safety course approved by the |
|
department]. |
|
(6-a) "Driver education instructor" means an |
|
individual who holds a license to teach or provide driver education |
|
issued under Section 1001.251. |
|
(6-b) "Driver education provider" means an in-person |
|
driver education provider, an online driver education provider, or |
|
a parent-taught driver education provider. |
|
(8) "Driver training" means: |
|
(A) driver education provided by a driver |
|
education provider [school]; or |
|
(B) driving safety training provided by a driving |
|
safety provider [school]. |
|
(9) "Driver training provider [school]" means a driver |
|
education provider [school] or driving safety provider [school]. |
|
(13) "Driving safety provider" means a business that |
|
provides a driving safety course [school" means an enterprise that: |
|
[(A) maintains a place of business or solicits |
|
business in this state; and |
|
[(B) is operated by an individual, association, |
|
partnership, or corporation for educating and training persons in |
|
driving safety]. |
|
(14) "In-person driver education provider |
|
[Instructor]" means a business that provides driver education |
|
courses in person, including behind-the-wheel instruction, |
|
observation instruction, or driver's license examinations [an |
|
individual who holds a license for the type of instruction being |
|
given]. |
|
(14-b) "Online driver education provider" means a |
|
business that provides driver education courses to students |
|
remotely through the Internet. |
|
(14-c) "Parent-taught driver education provider" |
|
means a business that provides driver education course materials |
|
through physical means or remotely through the Internet to persons |
|
who conduct parent-taught driver education under Section 1001.112. |
|
SECTION 4.02. Section 1001.003, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.003. LEGISLATIVE INTENT REGARDING SMALL |
|
BUSINESSES. It is the intent of the legislature that commission |
|
rules that affect driver training providers [schools] that qualify |
|
as small businesses be adopted and administered so as to have the |
|
least possible adverse economic effect on the providers [schools]. |
|
SECTION 4.03. Section 1001.004(b), Education Code, is |
|
amended to read as follows: |
|
(b) The department may charge a fee to each driver education |
|
provider [school] in an amount not to exceed the actual expense |
|
incurred in the regulation of driver education courses established |
|
under Section 1001.1015. |
|
SECTION 4.04. Section 1001.051, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.051. JURISDICTION OVER PROVIDERS [SCHOOLS]. The |
|
department has jurisdiction over and control of driver training |
|
providers [schools] regulated under this chapter. |
|
SECTION 4.05. Sections 1001.053(a) and (b), Education Code, |
|
are amended to read as follows: |
|
(a) The department and executive director, as appropriate, |
|
shall: |
|
(1) administer this chapter; |
|
(2) enforce minimum standards for driver training |
|
providers [schools] under this chapter; |
|
(3) enforce rules adopted by the commission that are |
|
necessary to administer this chapter; and |
|
(4) inspect a driver training provider [school or |
|
course provider] and reinspect the [school or course] provider for |
|
compliance with this chapter. |
|
(b) The executive director may designate a person |
|
knowledgeable in the administration of regulating driver training |
|
providers [schools] to administer this chapter. |
|
SECTION 4.06. Section 1001.054, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.054. RULES RESTRICTING ADVERTISING. [(c)] The |
|
commission by rule may restrict advertising by a branch location of |
|
an in-person [a] driver education provider [training school] so |
|
that the location adequately identifies the main business [primary] |
|
location of the provider [school] in a solicitation. |
|
SECTION 4.07. Sections 1001.055(a), (a-1), and (a-2), |
|
Education Code, are amended to read as follows: |
|
(a) The department shall provide to each licensed driver |
|
education provider or exempt driver education school [and to each |
|
parent-taught course provider approved under this chapter] driver |
|
education certificates or certificate numbers to enable the [school |
|
or approved parent-taught course] provider or school to issue |
|
department-approved driver education certificates to certify |
|
completion of an approved driver education course and satisfy the |
|
requirements of Sections 521.204(a)(2), Transportation Code, |
|
521.1601, Transportation Code, as added by Chapter 1253 (H.B. 339), |
|
Acts of the 81st Legislature, Regular Session, 2009, and 521.1601, |
|
Transportation Code, as added by Chapter 1413 (S.B. 1317), Acts of |
|
the 81st Legislature, Regular Session, 2009. |
|
(a-1) A certificate issued by a driver education [school or |
|
parent-taught course] provider licensed [approved] under this |
|
chapter must: |
|
(1) be in a form required by the department; and |
|
(2) include an identifying certificate number |
|
provided by the department that may be used to verify the |
|
authenticity of the certificate with the [driver education school |
|
or approved parent-taught course] provider. |
|
(a-2) A driver education [school or parent-taught course] |
|
provider licensed [approved] under this chapter that purchases |
|
driver education certificate numbers shall issue original and |
|
duplicate certificates in a manner that, to the greatest extent |
|
possible, prevents the unauthorized production or the misuse of the |
|
certificates. The [driver education school or approved |
|
parent-taught course] provider shall electronically submit to the |
|
department in the manner established by the department data |
|
identified by the department relating to issuance of |
|
department-approved driver education certificates with the |
|
certificate numbers. |
|
SECTION 4.08. Sections 1001.056(b), (c-1), (d), (e), and |
|
(g), Education Code, are amended to read as follows: |
|
(b) The department shall provide each licensed driving |
|
safety [course] provider with course completion certificate |
|
numbers to enable the provider to issue department-approved uniform |
|
certificates of course completion. |
|
(c-1) A driving safety [course] provider shall provide for |
|
the issuance of original and duplicate certificates in a manner |
|
that, to the greatest extent possible, prevents the unauthorized |
|
production or the misuse of the certificates. |
|
(d) A certificate under this section must: |
|
(1) be in a form required by the department; and |
|
(2) include an identifying number by which the |
|
department, a court, or the Department of Public Safety may verify |
|
its authenticity with the driving safety [course] provider. |
|
(e) The commission by rule shall establish a fee for each |
|
course completion certificate number. [A course provider that |
|
supplies a certificate to an operator shall collect from the |
|
operator a fee equal to the amount of the fee paid to the department |
|
for the certificate number.] |
|
(g) A driving safety [course] provider shall issue a |
|
duplicate certificate by United States mail or commercial or |
|
electronic delivery. The commission by rule shall determine the |
|
amount of the fee for issuance of a duplicate certificate under this |
|
subsection. |
|
SECTION 4.09. Section 1001.058(b), Education Code, is |
|
amended to read as follows: |
|
(b) The advisory committee consists of nine [eleven] |
|
members appointed for staggered six-year terms by the presiding |
|
officer of the commission, with the approval of the commission, as |
|
follows: |
|
(1) three driver education providers [one member |
|
representing a driver education school that offers a traditional |
|
classroom course and in-car training]; |
|
(2) three driving safety providers [one member |
|
representing a driver education school that offers a traditional |
|
classroom course, alternative methods of instruction, or in-car |
|
training]; |
|
(3) [one member representing a driving safety school |
|
offering a traditional classroom course or providing an alternative |
|
method of instruction; |
|
[(4) one member representing a driving safety course |
|
provider approved for a traditional classroom course and for an |
|
alternative method of instruction; |
|
[(5) one member representing a driving safety course |
|
provider approved for a traditional classroom course or for an |
|
alternative method of instruction; |
|
[(6)] one driver education [licensed] instructor; |
|
(4) the division head [(7) one representative] of the |
|
Department of Public Safety driver license division or the division |
|
head's designee; |
|
[(8) one member representing a drug and alcohol |
|
driving awareness program course provider; |
|
[(9) one member representing a parent-taught course |
|
provider;] and |
|
(5) one member of [(10) two members representing] the |
|
public. |
|
SECTION 4.10. Section 1001.059(b), Education Code, is |
|
amended to read as follows: |
|
(b) The department may collaborate with another state |
|
agency or contract with a licensed driver education provider |
|
[school] or a driver education instructor to create the course. |
|
SECTION 4.11. Subchapter B, Chapter 1001, Education Code, |
|
is amended by adding Section 1001.060 to read as follows: |
|
Sec. 1001.060. COORDINATION WITH DEPARTMENT OF PUBLIC |
|
SAFETY. (a) The department shall enter into a memorandum of |
|
understanding with the Department of Public Safety for: |
|
(1) the interagency development of the content of |
|
driver's license examinations and examination reference materials; |
|
and |
|
(2) any other matter the agencies consider |
|
appropriate. |
|
(b) The memorandum of understanding must authorize the |
|
Department of Public Safety to share with the department any |
|
relevant information, including information related to examination |
|
results. |
|
SECTION 4.12. The heading to Subchapter C, Chapter 1001, |
|
Education Code, is amended to read as follows: |
|
SUBCHAPTER C. [OPERATION OF] DRIVER EDUCATION AND DRIVING SAFETY |
|
CURRICULUM [SCHOOL] |
|
SECTION 4.13. Section 1001.101, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.101. ADULT AND MINOR DRIVER EDUCATION COURSE |
|
CURRICULUM AND TEXTBOOKS. (a) The commission by rule shall |
|
establish or approve the curriculum and designate the educational |
|
materials to be used in a driver education course for minors and |
|
adults, including a driver education course conducted by a school |
|
district, driver education provider [school], or parent or other |
|
individual under this chapter. |
|
(b) The commission by rule shall prescribe the minimum |
|
number of hours of classroom instruction, observation instruction, |
|
and behind-the-wheel instruction that must be completed for a [A] |
|
driver education course to be approved under this chapter [must |
|
require the student to complete: |
|
[(1) 7 hours of behind-the-wheel instruction in the |
|
presence of a person who holds a driver education instructor |
|
license or who meets the requirements for a driver education course |
|
conducted by a parent or other individual under Section 1001.112; |
|
[(2) 7 hours of observation instruction in the |
|
presence of a person who holds a driver education instructor |
|
license or who meets the requirements for a driver education course |
|
conducted by a parent or other individual under Section 1001.112; |
|
and |
|
[(3) 30 hours of behind-the-wheel instruction, |
|
including at least 10 hours of instruction that takes place at |
|
night, in the presence of an adult who meets the requirements of |
|
Section 521.222(d)(2), Transportation Code]. |
|
SECTION 4.14. Sections 1001.1015(b) and (d), Education |
|
Code, are amended to read as follows: |
|
(b) A driver education course under Subsection (a) must: |
|
(1) provide at least the minimum number of hours of |
|
classroom instruction required by commission rule [be a six-hour |
|
course]; and |
|
(2) include instruction in: |
|
(A) alcohol and drug awareness; |
|
(B) the traffic laws of this state; |
|
(C) highway signs, signals, and markings that |
|
regulate, warn, or direct traffic; and |
|
(D) the issues commonly associated with motor |
|
vehicle accidents, including poor decision-making, risk taking, |
|
impaired driving, distraction, speed, failure to use a safety belt, |
|
driving at night, failure to yield the right-of-way, and using a |
|
wireless communication device while operating a vehicle. |
|
(d) A driving safety course [or a drug and alcohol driving |
|
awareness program] may not be approved as a driver education course |
|
under Subsection (a). |
|
SECTION 4.15. Sections 1001.1016(b) and (c), Education |
|
Code, are amended to read as follows: |
|
(b) The commission by rule shall require an in-person [a] |
|
driver education provider or online driver education provider |
|
[school providing a driver education course] to: |
|
(1) in the manner described by the Americans with |
|
Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), make |
|
reasonable modifications and provide aids and services when |
|
providing the classroom instruction portion of a driver education |
|
[the] course that are necessary to ensure that a student who is deaf |
|
or hard of hearing may fully participate in the course; and |
|
(2) provide to the department the provider's |
|
[school's] plan for complying with the rules adopted under this |
|
section as a condition of obtaining a license under Section |
|
1001.211 or renewing a license [under Section 1001.303]. |
|
(c) The rules adopted under Subsection (b) must allow an |
|
in-person [a] driver education provider or online driver education |
|
provider [school] to comply with the requirements of this section |
|
by playing a video that presents the classroom instruction portion |
|
of the driver education course in a manner that complies with the |
|
requirements of this section. |
|
SECTION 4.16. Subchapter C, Chapter 1001, Education Code, |
|
is amended by adding Section 1001.1017 to read as follows: |
|
Sec. 1001.1017. COURSE APPROVAL. A driver training |
|
provider shall submit to the commission for approval the course |
|
length and curriculum content for each course offered by the |
|
provider. The provider may implement a course length and |
|
curriculum content only after approval by the commission. |
|
SECTION 4.17. Section 1001.112, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.112. PARENT-TAUGHT DRIVER EDUCATION. (a) A |
|
person who is eligible under Subsection (b) may conduct [The |
|
commission by rule shall provide for approval of] a driver |
|
education course approved under Section 1001.1017 for another |
|
[conducted by the following persons with the noted relationship to |
|
a] person who is required to complete a driver education course to |
|
obtain a Class C license. In conducting the course, the person must |
|
use course materials provided by a parent-taught driver education |
|
provider. |
|
(b) A person is eligible to conduct a driver education |
|
course for another person as provided by Subsection (a) if the |
|
person: |
|
(1) is either: |
|
(A) a parent, stepparent, foster parent, legal |
|
guardian, grandparent, or step-grandparent of the other person; or |
|
(B) [(2)] an individual who: |
|
(i) [(A)] has been designated on a form |
|
prescribed by the department for purposes of this section by a |
|
parent or[, a] legal guardian of the other person[,] or by a judge |
|
of a court with jurisdiction over the other person [on a form |
|
prescribed by the department]; |
|
(ii) [(B)] is at least 25 years of age [or |
|
older]; |
|
(iii) [(C)] does not charge a fee for |
|
conducting the course; and |
|
(iv) [(D)] has at least seven years of |
|
driving experience; |
|
(2) has possessed [and |
|
[(E) otherwise qualifies to conduct a course |
|
under Subsection (a-1). |
|
[(a-1) The rules must provide that the student driver spend |
|
a minimum number of hours in classroom and behind-the-wheel |
|
instruction. |
|
[(a-2) The rules must provide that the person conducting the |
|
course: |
|
[(1) possess] a valid license for the preceding three |
|
years that has not been suspended, revoked, or forfeited in the past |
|
three years for an offense that involves the operation of a motor |
|
vehicle; |
|
(3) [(2)] has not been convicted of: |
|
(A) criminally negligent homicide; or |
|
(B) driving while intoxicated in the past seven |
|
years; and |
|
(4) [(3)] has not been convicted during the preceding |
|
three years of: |
|
(A) three or more moving violations described by |
|
Section 542.304, Transportation Code, including violations that |
|
resulted in an accident; or |
|
(B) two or more moving violations described by |
|
Section 542.304, Transportation Code, that resulted in an accident. |
|
(c) A person conducting a driver education course under this |
|
section may provide the classroom instruction portion, the |
|
behind-the-wheel instruction portion, or both portions. |
|
(d) [(b)] The department may [approve a course described by |
|
Subsection (a) if the department determines that the course |
|
materials are at least equal to those required in a course approved |
|
by the department, and the department may] not require for a course |
|
conducted under this section that: |
|
(1) the classroom instruction be provided in a room |
|
with particular characteristics or equipment; or |
|
(2) the vehicle used for the behind-the-wheel |
|
instruction have equipment other than the equipment otherwise |
|
required by law for operation of the vehicle on a highway while the |
|
vehicle is not being used for driver training. |
|
(e) A parent-taught driver education provider [(c) The |
|
rules must provide a method by which: |
|
[(1) approval of a course is obtained; |
|
[(2) an applicant submits proof of completion of the |
|
course; |
|
[(3) approval for delivering course materials by an |
|
alternative method, including electronic means, is obtained; |
|
[(4) a provider of a course approved under this |
|
section] may administer to an applicant the highway sign and |
|
traffic law parts of the examination as provided by Section |
|
521.1655(a-1), Transportation Code, through electronic means[; and |
|
[(5) an applicant submits proof of passage of an |
|
examination administered under Subdivision (4)]. |
|
(f) [(d) Completion of a driver education course approved |
|
under this section has the same effect under this chapter as |
|
completion of a driver education course approved by the department. |
|
[(e)] The department may not charge a fee for the submission |
|
of proof of: |
|
(1) completion of a [the] course conducted under this |
|
section; or |
|
(2) passage of an examination administered under |
|
Subsection (e) [(c)]. |
|
SECTION 4.18. Sections 1001.151(b) and (c), Education Code, |
|
are amended to read as follows: |
|
(b) The commission by rule shall establish a fee for: |
|
(1) an initial in-person driver education provider |
|
[school] license and for each branch location; |
|
(2) an initial online driver education provider |
|
[driving safety school] license; |
|
(3) an initial parent-taught driver education |
|
[course] provider license[, except that the executive director may |
|
waive the fee]; |
|
(4) an initial driving safety provider license; |
|
(5) the annual renewal for a [course provider,] |
|
driving safety provider [school], driver education provider |
|
[school], or branch location of an in-person driver education |
|
provider, except that the executive director may waive the fee if |
|
revenue generated by the issuance of course completion certificate |
|
numbers and driver education certificates is sufficient to cover |
|
the cost of administering this chapter and Article 45.0511, Code of |
|
Criminal Procedure; |
|
(6) [(5)] a change of address of a driver education |
|
provider [school, driving safety school,] or driving safety |
|
[course] provider; and |
|
(7) [(6)] a change of name of: |
|
(A) a driver education [school or course] |
|
provider or an owner of a driver education [school or course] |
|
provider; or |
|
(B) a driving safety provider [school] or an |
|
owner of a driving safety provider [school; |
|
[(7) each additional driver education or driving |
|
safety course at a driver training school; and |
|
[(8) an initial application for approval of a driving |
|
safety course that has not been evaluated by the department]. |
|
(c) An application for an initial driver education [or |
|
driving safety] instructor license must be accompanied by a |
|
processing fee and an annual license fee, except that the |
|
department may not collect the processing fee from an applicant |
|
[for a driver education instructor license] who is currently |
|
teaching a driver education course in a public school in this state. |
|
SECTION 4.19. The heading to Subchapter E, Chapter 1001, |
|
Education Code, is amended to read as follows: |
|
SUBCHAPTER E. LICENSING OF DRIVER TRAINING [SCHOOLS AND COURSE] |
|
PROVIDERS |
|
SECTION 4.20. Section 1001.201, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.201. LICENSE REQUIRED. (a) A person may not |
|
provide: |
|
(1) [operate a school that provides] a driver |
|
education course: |
|
(A) in person unless the person holds an |
|
in-person [a] driver education provider [school] license; or |
|
(B) online unless the person holds an online |
|
driver education provider license; |
|
(2) driver education course materials to persons |
|
conducting parent-taught driver education under Section 1001.112 |
|
unless the person holds a parent-taught driver education provider |
|
license; or |
|
(3) [operate a school that provides] driving safety |
|
courses unless the person holds a driving safety provider [school] |
|
license[; or |
|
[(3) operate as a course provider unless the person |
|
holds a course provider license]. |
|
(b) The commission by rule shall provide for the issuance |
|
of: |
|
(1) an in-person driver education provider license to |
|
a person who holds an online driver education provider license, a |
|
parent-taught driver education provider license, or both of those |
|
licenses; |
|
(2) an online driver education provider license to a |
|
person who holds an in-person driver education provider license, a |
|
parent-taught driver education provider license, or both of those |
|
licenses; and |
|
(3) a parent-taught driver education provider license |
|
to a person who holds an in-person driver education provider |
|
license, an online driver education provider license, or both of |
|
those licenses. |
|
SECTION 4.21. Section 1001.202, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.202. LOCATIONS FOR IN-PERSON DRIVER EDUCATION |
|
PROVIDERS. An in-person [(a) A] driver education provider [school] |
|
that teaches a driver education course at one or more branch |
|
locations must obtain a separate in-person driver education |
|
provider [school] license for its main business location and for |
|
each branch location. An in-person [A] driver education provider |
|
[school] may not operate a branch location of a branch location. |
|
[(b) A driving safety school may use multiple classroom |
|
locations to teach a driving safety course if each location is |
|
approved by the department.] |
|
SECTION 4.22. Section 1001.204, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.204. REQUIREMENTS FOR DRIVER EDUCATION PROVIDER |
|
[SCHOOL] LICENSE. (a) The commission by rule shall establish the |
|
criteria applicable to each [for a] driver education provider |
|
[school] license. |
|
(b) The department shall approve an application for a driver |
|
education provider [school] license if the application is submitted |
|
on a form approved by the department, the application is |
|
accompanied by the fee, and the department determines that the |
|
applicant [school]: |
|
(1) has courses, curricula, and instruction of a |
|
quality, content, and length that reasonably and adequately achieve |
|
the stated objective for which the courses, curricula, and |
|
instruction are offered; |
|
(2) [has adequate space, equipment, instructional |
|
material, and instructors to provide training of good quality in |
|
the classroom and behind the wheel, if applicable; |
|
[(3) has instructors who have adequate educational |
|
qualifications and experience; |
|
[(4)] provides to each student before enrollment or |
|
each person before contracting for driver education course |
|
materials, to the extent applicable: |
|
(A) a copy of: |
|
(i) the refund policy; |
|
(ii) the schedule of tuition, fees, and |
|
other charges; and |
|
(iii) the regulations relating to absence, |
|
grading policy, and rules of operation and conduct; and |
|
(B) the department's name, mailing address, |
|
telephone number, and Internet website address for the purpose of |
|
directing complaints to the department; |
|
(3) to the extent applicable, [(5)] maintains adequate |
|
records as prescribed by the department to show attendance and |
|
progress or grades and enforces satisfactory standards relating to |
|
attendance, progress, and conduct; |
|
(4) [(6)] on completion of training, issues each |
|
student a certificate indicating the course name and satisfactory |
|
completion; |
|
(5) [(7)] complies with all county, municipal, state, |
|
and federal laws [regulations], including [fire, building, and |
|
sanitation codes and] assumed name registration and other[, if] |
|
applicable requirements; |
|
(6) [(8)] is financially sound and capable of |
|
fulfilling its commitments for training; |
|
(7) [(9)] maintains and publishes as part of its |
|
student enrollment contract or materials contract, as applicable, |
|
the proper policy for the refund of the unused portion of tuition, |
|
fees, and other charges if a student fails to take the course or |
|
withdraws or is discontinued from the provider [school] at any time |
|
before completion; |
|
(8) [(10)] does not use erroneous or misleading |
|
advertising, either by actual statement, omission, or intimation, |
|
as determined by the department; |
|
(9) [(11)] does not use a name similar to the name of |
|
another existing driver education provider [school] or |
|
tax-supported educational institution in this state, unless |
|
specifically approved in writing by the executive director; |
|
(10) [(12)] submits to the department for approval the |
|
applicable course hour lengths and curriculum content for each |
|
course offered by the provider [school]; |
|
(11) [(13)] does not owe an administrative penalty for |
|
a violation of this chapter; |
|
(12) meets all requirements applicable to the license |
|
type under Section 1001.2041, 1001.2042, or 1001.2043; and |
|
(13) [(14)] meets any additional criteria required by |
|
the department, including any applicable inspection requirements[; |
|
and |
|
[(15) provides adequate testing and security measures |
|
for the school's method of instruction]. |
|
SECTION 4.23. Subchapter E, Chapter 1001, Education Code, |
|
is amended by adding Sections 1001.2041, 1001.2042, and 1001.2043 |
|
to read as follows: |
|
Sec. 1001.2041. REQUIREMENTS FOR IN-PERSON DRIVER |
|
EDUCATION PROVIDER. Before an in-person driver education provider |
|
license may be issued, the department must determine that the |
|
applicant has adequate space, equipment, instructional material, |
|
and driver education instructors to provide training of good |
|
quality in the classroom and behind the wheel. |
|
Sec. 1001.2042. REQUIREMENTS FOR ONLINE DRIVER EDUCATION |
|
PROVIDER. Before an online driver education provider license may |
|
be issued, the department must determine that the applicant has: |
|
(1) adequate driver education instructors to provide |
|
training of good quality; and |
|
(2) adequate testing and security measures to validate |
|
a student's identity and active participation in a driver education |
|
course. |
|
Sec. 1001.2043. REQUIREMENTS FOR PARENT-TAUGHT DRIVER |
|
EDUCATION PROVIDER. (a) Before a parent-taught driver education |
|
provider license may be issued, the department must determine that |
|
the applicant has: |
|
(1) an adequate method by which a person completing a |
|
parent-taught driver education course under Section 1001.112 using |
|
the provider's course materials may submit proof of: |
|
(A) completion of the course; or |
|
(B) passage of an examination administered by the |
|
provider under Section 1001.112(e); |
|
(2) hired or contracted with only driver education |
|
instructors, if the provider elects to hire or contract with an |
|
instructor to assist with driver education; and |
|
(3) adequate testing and security measures to validate |
|
a student's active participation in a driver education course |
|
conducted using course materials provided remotely through the |
|
Internet. |
|
(b) Except as specifically provided by this chapter, a |
|
parent-taught driver education provider that provides driver |
|
education course materials remotely through the Internet is not |
|
subject to any course or curriculum requirements established by the |
|
commission or department for online driver education providers. |
|
SECTION 4.24. Section 1001.206, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.206. REQUIREMENTS FOR DRIVING SAFETY [COURSE] |
|
PROVIDER LICENSE. (a) The commission by rule shall establish |
|
criteria for a driving safety [course] provider license. |
|
(b) The department shall approve an application for a |
|
driving safety [course] provider license if the application is |
|
submitted on a form approved by the executive director, includes |
|
the fee, and [on inspection of the premises of the school] the |
|
department determines that the applicant: |
|
(1) has driving safety courses, curricula, and |
|
instruction of a quality, content, and length that reasonably and |
|
adequately achieve the stated objective for which the courses, |
|
curricula, and instruction are offered [the course provider has an |
|
approved course that at least one licensed driving safety school is |
|
willing to offer]; |
|
(2) provides [the course provider has adequate |
|
educational qualifications and experience; |
|
[(3) the course provider will: |
|
[(A) develop and provide] to each student before |
|
enrollment: |
|
(A) [driving safety school that offers the |
|
approved course] a copy of: |
|
(i) the refund policy; [and] |
|
(ii) the schedule of tuition, fees, and |
|
other charges; and |
|
(iii) the regulations relating to absence, |
|
grading policy, and rules of operation and conduct; and |
|
(B) [provide to the driving safety school] the |
|
department's name, mailing address, telephone number, and Internet |
|
website address for the purpose of directing complaints to the |
|
department; |
|
(3) [(4) a copy of the information provided to each |
|
driving safety school under Subdivision (3) will be provided to |
|
each student by the school before enrollment; |
|
[(5)] not later than the 15th working day after the date |
|
a person successfully completes the course, issues [the course |
|
provider will issue] and delivers [deliver] to the person by United |
|
States mail or commercial or electronic delivery a uniform |
|
certificate of course completion indicating the course name and |
|
successful completion; |
|
(4) [(6) the course provider] maintains adequate |
|
records as prescribed by the department to show attendance and |
|
progress or grades and enforces satisfactory standards relating to |
|
attendance, progress, and conduct; |
|
(5) [(7) the course provider] complies with all |
|
county, municipal, state, and federal laws, including assumed name |
|
registration and other applicable requirements; |
|
(6) [(8) the course provider] is financially sound and |
|
capable of fulfilling its commitments for training; |
|
(7) [(9) the course provider] maintains and publishes |
|
as a part of its student enrollment contract the proper policy for |
|
the refund of the unused portion of tuition, fees, and other charges |
|
if a student fails to take the course or withdraws or is |
|
discontinued from the provider [school] at any time before |
|
completion; |
|
(8) [(10) the course provider] does not use erroneous |
|
or misleading advertising, either by actual statement, omission, or |
|
intimation, as determined by the department; |
|
(9) [(11) the course provider] does not use a name |
|
similar to the name of another existing driving safety provider |
|
[school] or tax-supported educational institution in this state, |
|
unless specifically approved in writing by the executive director; |
|
(10) submits to the department for approval the |
|
applicable course hour lengths and curriculum content for each |
|
course offered by the provider; |
|
(11) [(12) the course provider] does not owe an |
|
administrative penalty for a violation of this chapter; |
|
(12) provides adequate testing and security measures |
|
for the provider's method of instruction to validate a student's |
|
identity and active participation in a driving safety course; and |
|
(13) [the course provider] meets any additional |
|
criteria required by the department. |
|
SECTION 4.25. Section 1001.207, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.207. BOND REQUIREMENTS: DRIVER EDUCATION |
|
PROVIDER [SCHOOL]. (a) Before a driver education provider |
|
[school] may be issued a license, the provider [school] must file a |
|
corporate surety bond with the department in the amount of: |
|
(1) $10,000 [for the primary location of the school]; |
|
and |
|
(2) for an in-person driver education provider, $5,000 |
|
for each branch location of the provider. |
|
(b) A bond issued under Subsection (a) must be: |
|
(1) issued in a form approved by the department; |
|
(2) issued by a company authorized to do business in |
|
this state; |
|
(3) payable to the department to be used only for |
|
payment of a refund due to a student or potential student; |
|
(4) conditioned on the compliance of the provider |
|
[school] and its officers, agents, and employees with this chapter |
|
and rules adopted under this chapter; and |
|
(5) issued for a period corresponding to the term of |
|
the license. |
|
(c) Posting of a bond in the amount required under |
|
Subsection (a) satisfies the requirements for financial stability |
|
for driver education providers [schools] under this chapter. |
|
(d) A driver education provider who files a bond under |
|
Subsection (a)(1) or provides an alternate form of security under |
|
Section 1001.210 to obtain one type of driver education provider |
|
license may not be required to file an additional bond under |
|
Subsection (a)(1) or provide an alternate form of security under |
|
Section 1001.210 for any other type of driver education provider |
|
license. |
|
SECTION 4.26. Section 1001.209, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.209. BOND REQUIREMENTS: DRIVING SAFETY [COURSE] |
|
PROVIDER. (a) Before a license may be issued to a driving safety |
|
[course] provider, the [course] provider must provide a corporate |
|
surety bond in the amount of $10,000. |
|
(b) A bond issued under Subsection (a) must be: |
|
(1) issued by a company authorized to do business in |
|
this state; |
|
(2) payable to the department to be used: |
|
(A) for payment of a refund due a student of the |
|
[course] provider's approved driving safety courses [course]; |
|
(B) to cover the payment of unpaid fees or |
|
penalties assessed by the executive director or the commission; or |
|
(C) to recover any cost associated with providing |
|
course completion certificate numbers, including the cancellation |
|
of certificate numbers; |
|
(3) conditioned on the compliance of the [course] |
|
provider and its officers, agents, and employees with this chapter |
|
and rules adopted under this chapter; and |
|
(4) issued for a period corresponding to the term of |
|
the license. |
|
SECTION 4.27. Section 1001.210, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.210. ALTERNATE FORM OF SECURITY. Instead of the |
|
bond required by Section 1001.207 or 1001.209, a driver education |
|
provider [school] or driving safety [course] provider may provide |
|
another form of security that is: |
|
(1) approved by the department; and |
|
(2) in the amount required for a comparable bond under |
|
Section 1001.207 or 1001.209. |
|
SECTION 4.28. Sections 1001.211(b) and (c), Education Code, |
|
are amended to read as follows: |
|
(b) A license must be in a form determined by the department |
|
and must show in a clear and conspicuous manner: |
|
(1) the date of issuance, effective date, and term of |
|
the license; |
|
(2) the name and address of the driver training |
|
[school or course] provider; |
|
(3) the authority for and conditions of approval; and |
|
(4) any other fair and reasonable representation that |
|
is consistent with this chapter and that the department considers |
|
necessary. |
|
(c) An applicant may obtain both a driver education provider |
|
[school] license and a driving safety provider [school] license. |
|
SECTION 4.29. Sections 1001.213(b), (c), and (d), Education |
|
Code, are amended to read as follows: |
|
(b) If a change in ownership of a driver training [school or |
|
course] provider is proposed, a new owner shall apply for a new |
|
[school or course] provider license at least 30 days before the date |
|
of the change. |
|
(c) The commission by rule may establish fees for a new |
|
driver training [education school or course] provider license under |
|
Subsection (b) and, if applicable, for each branch location of an |
|
in-person driver education provider if: |
|
(1) the new owner is substantially similar to the |
|
previous owner; and |
|
(2) there is no significant change in the management |
|
or control of the [driver education school or course] provider. |
|
(d) The department may inspect a driver training provider's |
|
main [school] or [a] branch location, as applicable, after a change |
|
of ownership. |
|
SECTION 4.30. Section 1001.214, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.214. DUPLICATE LICENSE. A duplicate license may |
|
be issued to a driver training [school or course] provider if: |
|
(1) the original license is lost or destroyed; and |
|
(2) an affidavit of that fact is filed with the |
|
department. |
|
SECTION 4.31. Section 1001.251(a), Education Code, is |
|
amended to read as follows: |
|
(a) Except as authorized under Section 1001.112, a [A] |
|
person may not teach or provide driver education[, either as an |
|
individual or in a driver education school,] or conduct any phase of |
|
driver education[,] unless the person holds a driver education |
|
instructor license issued by the executive director. |
|
SECTION 4.32. Section 1001.2511(e), Education Code, is |
|
amended to read as follows: |
|
(e) The commission may adopt rules to administer this |
|
section, including rules establishing: |
|
(1) deadlines for a person to submit fingerprints and |
|
photographs in compliance with this section; |
|
(2) sanctions for a person's failure to comply with the |
|
requirements of this section, including suspension or revocation of |
|
or refusal to issue a license described by Subsection (a); and |
|
(3) notification to a driver education provider |
|
[school] of relevant information obtained by the department under |
|
this section. |
|
SECTION 4.33. Section 1001.2512, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.2512. FEES FOR CRIMINAL HISTORY RECORD |
|
INFORMATION REVIEW. The commission by rule shall require a person |
|
submitting to a national criminal history record information review |
|
under Section 1001.2511 or the driver education provider [school] |
|
employing the person, as determined by the department, to pay a fee |
|
for the review in an amount not to exceed the amount of any fee |
|
imposed on an application for certification under Subchapter B, |
|
Chapter 21, for a national criminal history record information |
|
review under Section 22.0837. |
|
SECTION 4.34. Section 1001.2513, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.2513. CONFIDENTIALITY OF INFORMATION. A social |
|
security number, driver's license number, other identification |
|
number, or fingerprint record collected for a person to comply with |
|
Section 1001.2511: |
|
(1) may not be released except: |
|
(A) to provide relevant information to driver |
|
education providers [schools] or otherwise to comply with Section |
|
1001.2511; |
|
(B) by court order; or |
|
(C) with the consent of the person who is the |
|
subject of the information; |
|
(2) is not subject to disclosure as provided by |
|
Chapter 552, Government Code; and |
|
(3) shall be destroyed by the requestor or any |
|
subsequent holder of the information not later than the first |
|
anniversary of the date the information is received. |
|
SECTION 4.35. Sections 1001.2514(a) and (d), Education |
|
Code, are amended to read as follows: |
|
(a) A driver education provider [school] shall discharge or |
|
refuse to hire as an instructor an employee or applicant for |
|
employment if the department obtains information through a criminal |
|
history record information review that: |
|
(1) the employee or applicant has been convicted of: |
|
(A) a felony offense under Title 5, Penal Code; |
|
(B) an offense on conviction of which a defendant |
|
is required to register as a sex offender under Chapter 62, Code of |
|
Criminal Procedure; or |
|
(C) an offense under the laws of another state or |
|
federal law that is equivalent to an offense under Paragraph (A) or |
|
(B); and |
|
(2) at the time the offense occurred, the victim of the |
|
offense described by Subdivision (1) was under 18 years of age or |
|
was enrolled in a public school. |
|
(d) A driver education provider [school] may discharge an |
|
employee who serves as an instructor if the provider [school] |
|
obtains information of the employee's conviction of a felony or of a |
|
misdemeanor involving moral turpitude that the employee did not |
|
disclose to the provider [school] or the department. An employee |
|
discharged under this subsection is considered to have been |
|
discharged for misconduct for purposes of Section 207.044, Labor |
|
Code. |
|
SECTION 4.36. Section 1001.2531(b), Education Code, is |
|
amended to read as follows: |
|
(b) An applicant for a driver education instructor license |
|
under this section must: |
|
(1) apply to the department on a form prescribed by the |
|
department and under rules adopted by the commission; |
|
(2) submit with the application a nonrefundable |
|
application fee in an amount set by commission rule; and |
|
(3) present satisfactory evidence to the department |
|
that the applicant: |
|
(A) is at least 21 years of age; and |
|
(B) [holds a high school diploma or high school |
|
equivalency certificate; and |
|
[(C)] meets any other requirement established by |
|
commission rule. |
|
SECTION 4.37. Sections 1001.255(a), (b), and (c), Education |
|
Code, are amended to read as follows: |
|
(a) The department shall regulate as a driver education |
|
provider of the type determined appropriate by the department |
|
[school] a driver education instructor who: |
|
(1) teaches driver education courses in a county |
|
having a population of 50,000 or less; and |
|
(2) does not teach more than 200 students annually. |
|
(b) An instructor described by Subsection (a) must submit to |
|
the department an application for an initial or renewal driver |
|
education provider [school] license, together with all required |
|
documentation and information. |
|
(c) The executive director may waive initial or renewal |
|
driver education provider [school] license fees. |
|
SECTION 4.38. Section 1001.301, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.301. EXPIRATION OF DRIVER TRAINING [SCHOOL OR |
|
COURSE] PROVIDER LICENSE. The term of a driver training [education |
|
school, driving safety school, or course] provider license may not |
|
exceed one year. |
|
SECTION 4.39. Section 1001.302, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.302. EXPIRATION OF DRIVER EDUCATION INSTRUCTOR |
|
LICENSE. The term of a driver education instructor [or driving |
|
safety instructor] license may not exceed one year. |
|
SECTION 4.40. Section 1001.351, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.351. DRIVING SAFETY [COURSE] PROVIDER |
|
RESPONSIBILITIES. (a) Not later than the 15th working day after |
|
the course completion date, a driving safety [course] provider or a |
|
person at the [course] provider's facilities shall issue and |
|
deliver by United States mail or commercial or electronic delivery |
|
a uniform certificate of course completion to a person who |
|
successfully completes an approved driving safety course. |
|
(b) A driving safety [course] provider shall electronically |
|
submit to the department in the manner established by the |
|
department data identified by the department relating to uniform |
|
certificates of course completion issued by the [course] provider. |
|
[(c) A course provider shall conduct driving safety |
|
instructor development courses for its approved driving safety |
|
courses.] |
|
SECTION 4.41. Section 1001.352, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.352. FEES FOR DRIVING SAFETY COURSE. A driving |
|
safety [course] provider shall charge each student: |
|
(1) at least $25 for a driving safety course; and |
|
(2) a fee of at least $3 for course materials and for |
|
supervising and administering the course. |
|
SECTION 4.42. Section 1001.353, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.353. DRIVER TRAINING COURSE AT PUBLIC OR PRIVATE |
|
SCHOOL. A driver training provider [school] may conduct a driver |
|
training course at a public or private school for students of the |
|
public or private school as provided by an agreement with the public |
|
or private school. The course is subject to any law applicable to a |
|
course conducted at the main business location of the driver |
|
training provider [school]. |
|
SECTION 4.43. Section 1001.355, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.355. WITHHOLDING CERTAIN RECORDS. A driver |
|
training provider [school] may withhold a student's diploma or |
|
certificate of completion until the student fulfills the student's |
|
financial obligation to the provider [school]. |
|
SECTION 4.44. Section 1001.356, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.356. REQUIREMENT TO CARRY LICENSE. A driver |
|
education instructor [or driving safety instructor] shall carry the |
|
person's instructor license at all times while instructing a driver |
|
education course [or driving safety course]. |
|
SECTION 4.45. Section 1001.357, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.357. CONTRACT WITH UNLICENSED DRIVER TRAINING |
|
PROVIDER [SCHOOL]. A contract entered into with a person for a |
|
course of instruction by or on behalf of a person operating an |
|
unlicensed driver training provider [school] is unenforceable. |
|
SECTION 4.46. Section 1001.401, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.401. CANCELLATION AND SETTLEMENT POLICY. As a |
|
condition for obtaining a driver training [education school license |
|
or course] provider license, the [school or course] provider must |
|
maintain a cancellation and settlement policy that provides a full |
|
refund of all money paid by a student if: |
|
(1) the student cancels the enrollment contract before |
|
midnight of the third day, other than a Saturday, Sunday, or legal |
|
holiday, after the date the enrollment contract is signed by the |
|
student, unless the student successfully completes the course or |
|
receives a failing grade on the course examination; or |
|
(2) the enrollment of the student was procured as a |
|
result of a misrepresentation in: |
|
(A) advertising or promotional materials of the |
|
[school or course] provider; or |
|
(B) a representation made by an owner or employee |
|
of the [school or course] provider. |
|
SECTION 4.47. Section 1001.402, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.402. TERMINATION POLICY. (a) As a condition for |
|
obtaining a driver training provider [education school] license, |
|
the provider [school] must maintain a policy for the refund of the |
|
unused portion of tuition, fees, and other charges if a student, |
|
after expiration of the cancellation period described by Section |
|
1001.401, does not enter the course or withdraws or is discontinued |
|
from the course at any time before completion. |
|
(b) The policy must provide that: |
|
(1) refunds are based on the period of enrollment |
|
computed on the basis of course time expressed in clock hours; |
|
(2) the effective date of the termination for refund |
|
purposes is the earliest of: |
|
(A) the last day of attendance, if the student's |
|
enrollment is terminated by the provider [school]; |
|
(B) the date the provider [school] receives |
|
written notice from the student; or |
|
(C) the 10th school day after the last day of |
|
attendance; |
|
(3) if tuition is collected in advance of entrance and |
|
if a student does not enter the course [school], terminates |
|
enrollment, or withdraws, the provider [school]: |
|
(A) may retain not more than $50 as an |
|
administrative expense; and |
|
(B) shall refund that portion of the student's |
|
remaining classroom tuition and fees and behind-the-wheel tuition |
|
and fees that corresponds to services the student does not receive; |
|
(4) the provider [school] shall refund items of extra |
|
expense to the student, including instructional supplies, books, |
|
laboratory fees, service charges, rentals, deposits, and all other |
|
charges not later than the 30th day after the effective date of |
|
enrollment termination if: |
|
(A) the extra expenses are separately stated and |
|
shown in the information provided to the student before enrollment; |
|
and |
|
(B) the student returns to the provider [school] |
|
any provider [school] property in the student's possession; and |
|
(5) refunds shall be completed not later than the 30th |
|
day after the effective date of enrollment termination. |
|
SECTION 4.48. Section 1001.403, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.403. REFUND FOR DISCONTINUED COURSE. On the |
|
discontinuation of a course by a driver training [education school |
|
or a course] provider that prevents a student from completing the |
|
course, all tuition and fees paid become refundable. |
|
SECTION 4.49. Sections 1001.404(a) and (c), Education Code, |
|
are amended to read as follows: |
|
(a) If a refund is not timely made, the driver training |
|
[education school or course] provider shall pay interest on the |
|
amount of the refund. Interest begins to accrue on the first day |
|
after the expiration of the refund period and ends on the day |
|
preceding the date the refund is made. |
|
(c) The department may except a driver training [education |
|
school or course] provider from the payment of interest if the |
|
[school or course] provider makes a good-faith effort to refund |
|
tuition, fees, and other charges but is unable to locate the student |
|
to whom the refund is owed. On request of the department, the |
|
driver training [school or course] provider shall document the |
|
effort to locate a student. |
|
SECTION 4.50. Subchapter I, Chapter 1001, Education Code, |
|
is amended by adding Section 1001.405 to read as follows: |
|
Sec. 1001.405. APPLICABILITY TO PARENT-TAUGHT DRIVER |
|
EDUCATION PROVIDER. The commission shall adopt rules as necessary |
|
to ensure this subchapter applies as appropriate to a parent-taught |
|
driver education provider. |
|
SECTION 4.51. Section 1001.451, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.451. PROHIBITED PRACTICES. A person may not: |
|
(1) use advertising that is false, misleading, or |
|
deceptive; |
|
(2) fail to notify the department of the |
|
discontinuance of the operation of a driver training provider |
|
[school] before the 15th working day after the date of cessation of |
|
classes and make available accurate records as required by this |
|
chapter; |
|
(3) issue, sell, trade, or transfer: |
|
(A) a uniform certificate of course completion or |
|
driver education certificate to a person or driver training |
|
provider [school] not authorized to possess the certificate; |
|
(B) a uniform certificate of course completion to |
|
a person who has not successfully completed an approved[, six-hour] |
|
driving safety course; or |
|
(C) a driver education certificate to a person |
|
who has not successfully completed a department-approved driver |
|
education course; |
|
(4) negotiate a promissory instrument received as |
|
payment of tuition or another charge before the student completes |
|
75 percent of the course, except that before that time the |
|
instrument may be assigned to a purchaser who becomes subject to any |
|
defense available against the provider [school] named as payee; or |
|
(5) conduct any part of an approved driver education |
|
course [or driving safety course] without having an instructor |
|
adequately available [physically present in appropriate proximity] |
|
to the student for the type of instruction being given. |
|
SECTION 4.52. Section 1001.452, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.452. COURSE OF INSTRUCTION OR PROVISION OF |
|
MATERIALS. A driver training provider [school] may not conduct a |
|
course of instruction or provide driver education course materials, |
|
as applicable, in this state before the date the provider [school] |
|
receives the necessary [a] driver training provider [school] |
|
license from the department. |
|
SECTION 4.53. The heading to Section 1001.453, Education |
|
Code, is amended to read as follows: |
|
Sec. 1001.453. DISTRIBUTION OF WRITTEN INFORMATION ON |
|
DRIVING SAFETY [COURSE] PROVIDER. |
|
SECTION 4.54. Sections 1001.453(a) and (b), Education Code, |
|
are amended to read as follows: |
|
(a) A person may not distribute within 500 feet of a court |
|
with jurisdiction over an offense to which Article 45.0511, Code of |
|
Criminal Procedure, applies written information that advertises a |
|
driving safety [course] provider. |
|
(b) The department may revoke the license of a driving |
|
safety [course] provider if the [course] provider or the [course] |
|
provider's agent, employee, or representative violates this |
|
section. |
|
SECTION 4.55. Section 1001.455, Education Code, is amended |
|
to read as follows: |
|
Sec. 1001.455. DENIAL, SUSPENSION, OR REVOCATION OF DRIVER |
|
EDUCATION INSTRUCTOR LICENSE. (a) The executive director or the |
|
commission may deny an application for a driver education [an] |
|
instructor license or suspend or revoke the license of a driver |
|
education [an] instructor if the instructor: |
|
(1) fails to meet a requirement for issuance of or |
|
holding a license under this chapter; |
|
(2) permits or engages in misrepresentation, fraud, or |
|
deceit in applying for or obtaining a certificate, license, or |
|
permit; |
|
(3) induces fraud or fraudulent practices on the part |
|
of an applicant for a driver's license or permit; |
|
(4) permits or engages in any other fraudulent |
|
practice in an action between the applicant or license holder and |
|
the public; |
|
(5) fails to comply with commission rules relating to |
|
driver instruction; or |
|
(6) fails to comply with this chapter. |
|
SECTION 4.56. Section 106.115(a), Alcoholic Beverage Code, |
|
is amended to read as follows: |
|
(a) On the placement of a minor on deferred disposition for |
|
an offense under Section 49.02, Penal Code, or under Section |
|
106.02, 106.025, 106.04, 106.041, 106.05, or 106.07, the court |
|
shall require the defendant to attend an alcohol awareness program |
|
approved by the Texas Department of Licensing and Regulation under |
|
this section or [,] a drug education program approved by the |
|
Department of State Health Services in accordance with Section |
|
521.374, Transportation Code[, or a drug and alcohol driving |
|
awareness program approved by the Texas Education Agency]. On |
|
conviction of a minor of an offense under one or more of those |
|
sections, the court, in addition to assessing a fine as provided by |
|
those sections, shall require a defendant who has not been |
|
previously convicted of an offense under one of those sections to |
|
attend an alcohol awareness program or[,] a drug education |
|
program[, or a drug and alcohol driving awareness program] |
|
described by this subsection. If the defendant has been previously |
|
convicted once or more of an offense under one or more of those |
|
sections, the court may require the defendant to attend an alcohol |
|
awareness program or [,] a drug education program[, or a drug and |
|
alcohol driving awareness program] described by this subsection. If |
|
the defendant is younger than 18 years of age, the court may require |
|
the parent or guardian of the defendant to attend the program with |
|
the defendant. The Texas Department of Licensing and Regulation or |
|
Texas Commission of Licensing and Regulation, as appropriate: |
|
(1) is responsible for the administration of the |
|
certification of approved alcohol awareness programs; |
|
(2) may charge a nonrefundable application fee for: |
|
(A) initial certification of the approval; or |
|
(B) renewal of the certification; |
|
(3) shall adopt rules regarding alcohol awareness |
|
programs approved under this section; and |
|
(4) shall monitor, coordinate, and provide training to |
|
a person who provides an alcohol awareness program. |
|
SECTION 4.57. Article 45.051(b-1), Code of Criminal |
|
Procedure, is amended to read as follows: |
|
(b-1) If the defendant is younger than 25 years of age and |
|
the offense committed by the defendant is a traffic offense |
|
classified as a moving violation: |
|
(1) Subsection (b)(8) does not apply; |
|
(2) during the deferral period, the judge[: |
|
[(A)] shall require the defendant to complete a |
|
driving safety course approved under Chapter 1001, Education Code; |
|
and |
|
[(B) may require the defendant to complete an |
|
additional driving safety course designed for drivers younger than |
|
25 years of age and approved under Section 1001.111, Education |
|
Code; and] |
|
(3) if the defendant holds a provisional license, |
|
during the deferral period the judge shall require that the |
|
defendant be examined by the Department of Public Safety as |
|
required by Section 521.161(b)(2), Transportation Code; a |
|
defendant is not exempt from the examination regardless of whether |
|
the defendant was examined previously. |
|
SECTION 4.58. Section 28.012(a)(3), Education Code, is |
|
amended to read as follows: |
|
(3) "Driver training provider [school]" has the |
|
meaning assigned by Section 1001.001. |
|
SECTION 4.59. Section 28.012(e), Education Code, is amended |
|
to read as follows: |
|
(e) Subject to rules adopted by the board, a school district |
|
or open-enrollment charter school may tailor the instruction |
|
developed under this section as appropriate for the district's or |
|
school's community. In tailoring the instruction, the district or |
|
school shall solicit input from local law enforcement agencies, |
|
driver training providers [schools], and the community. |
|
SECTION 4.60. Section 29.902(c), Education Code, is amended |
|
to read as follows: |
|
(c) A school district shall consider offering a driver |
|
education and traffic safety course during each school year. If the |
|
district offers the course, the district may: |
|
(1) conduct the course and charge a fee for the course |
|
in the amount determined by the agency to be comparable to the fee |
|
charged by a driver education provider [school] that holds a |
|
license under Chapter 1001; or |
|
(2) contract with a driver education provider [school] |
|
that holds a license under Chapter 1001 to conduct the course. |
|
SECTION 4.61. Section 123.007, Government Code, is amended |
|
to read as follows: |
|
Sec. 123.007. USE OF OTHER DRUG AND ALCOHOL AWARENESS |
|
PROGRAMS. In addition to using a drug court program established |
|
under this chapter, the commissioners court of a county or a court |
|
may use other drug awareness [or drug and alcohol driving |
|
awareness] programs to treat persons convicted of drug or alcohol |
|
related offenses. |
|
SECTION 4.62. Section 521.165(e), Transportation Code, is |
|
amended to read as follows: |
|
(e) The department may authorize an entity described by |
|
Subsection (a), including a driver education provider [school] |
|
described by Section 521.1655, to administer the examination |
|
required by Section 521.161(b)(2). |
|
SECTION 4.63. Sections 521.1655(a) and (a-1), |
|
Transportation Code, are amended to read as follows: |
|
(a) An in-person [A] driver education provider or online |
|
driver education provider [school] licensed under Chapter 1001, |
|
Education Code, may administer to a student of that provider |
|
[school] the vision, highway sign, and traffic law parts of the |
|
examination required by Section 521.161. |
|
(a-1) A parent-taught driver education [course] provider |
|
licensed [approved] under Chapter 1001, Education Code, [Section |
|
521.205] may administer to a student of that course the highway sign |
|
and traffic law parts of the examination required by Section |
|
521.161. |
|
SECTION 4.64. Sections 521.206(a) and (b), Transportation |
|
Code, are amended to read as follows: |
|
(a) The department shall collect data regarding collisions |
|
of students taught by public schools, driver education providers |
|
[schools] licensed under Chapter 1001, Education Code, and other |
|
entities that offer driver education courses to students for which |
|
a uniform certificate of course completion is issued. The |
|
collision rate is computed by determining the number of an entity's |
|
students who complete a driver education course during a state |
|
fiscal year, dividing that number by the number of collisions that |
|
involved students who completed such a course and that occurred in |
|
the 12-month period following their licensure, and expressing the |
|
quotient as a percentage. |
|
(b) The department shall collect data regarding the |
|
collision rate of students taught by course instructors approved |
|
under Section 1001.112, Education Code. The collision rate is |
|
computed by determining the number of students who completed a |
|
course taught [approved] under that section [Section 1001.112, |
|
Education Code,] during a state fiscal year, dividing that number |
|
by the number of collisions that involved students who completed |
|
such a course and that occurred in the 12-month period following |
|
their licensure, and expressing the quotient as a percentage. |
|
SECTION 4.65. Section 521.222(a), Transportation Code, is |
|
amended to read as follows: |
|
(a) The department may issue a learner license, including a |
|
Class A or Class B driver's learner license, to a person who: |
|
(1) is 15 years of age or older but under 18 years of |
|
age; |
|
(2) has satisfactorily completed and passed the |
|
classroom phase of an approved driver education course, which may |
|
be a course taught [approved] under Section 1001.112, Education |
|
Code; |
|
(3) meets the requirements imposed under Section |
|
521.204(a)(3); and |
|
(4) has passed each examination required under Section |
|
521.161 other than the driving test. |
|
SECTION 4.66. Section 542.304(a), Transportation Code, as |
|
added by Chapter 1094 (H.B. 2048), Acts of the 86th Legislature, |
|
Regular Session, 2019, is amended to conform to Section 4.40, |
|
Chapter 1352 (S.B. 346), Acts of the 86th Legislature, Regular |
|
Session, 2019, and is further amended to read as follows: |
|
(a) The department by rule shall designate the offenses |
|
involving the operation of a motor vehicle that constitute a moving |
|
violation of the traffic law for the purposes of: |
|
(1) [Article 102.022(a), Code of Criminal Procedure; |
|
[(2)] Section 1001.112(b)(4) [1001.112(a-2)], |
|
Education Code; |
|
(2) [(3)] Section 411.110(f), Government Code; and |
|
(3) [(4)] Sections 773.0614(b) and 773.06141(a), |
|
Health and Safety Code. |
|
SECTION 4.67. The following provisions are repealed: |
|
(1) Article 45.0511(u), Code of Criminal Procedure; |
|
(2) Sections 1001.001(4), (7), (10), and (11), |
|
Education Code; |
|
(3) Sections 1001.056(a) and (f), Education Code; |
|
(4) Section 1001.1015(c), Education Code; |
|
(5) Sections 1001.103 and 1001.111, Education Code; |
|
(6) Section 1001.151(e), Education Code; |
|
(7) Sections 1001.205 and 1001.208, Education Code; |
|
(8) Section 1001.251(b), Education Code; |
|
(9) Section 1001.2531(a), Education Code; |
|
(10) Sections 1001.2532, 1001.2533, 1001.2534, |
|
1001.2535, 1001.303, 1001.304, 1001.354, 1001.3541, and 1001.3542, |
|
Education Code; |
|
(11) the heading to Subchapter K, Chapter 1001, |
|
Education Code; |
|
(12) Section 545.412(g), Transportation Code; and |
|
(13) Section 545.413(i), Transportation Code. |
|
SECTION 4.68. On December 1, 2021: |
|
(1) the terms of members serving on the driver |
|
training and traffic safety advisory committee under Section |
|
1001.058, Education Code, immediately before that date expire; and |
|
(2) the presiding officer of the Texas Commission of |
|
Licensing and Regulation shall appoint members of the driver |
|
training and traffic safety advisory committee having |
|
qualifications that correspond as closely as possible to the |
|
qualifications provided under the changes in law made by this Act to |
|
Section 1001.058, Education Code, with initial terms as follows: |
|
(A) three members to terms expiring February 1, |
|
2023; |
|
(B) three members to terms expiring February 1, |
|
2025; and |
|
(C) three members to terms expiring February 1, |
|
2027. |
|
SECTION 4.69. Not later than June 1, 2023, the Texas |
|
Department of Licensing and Regulation and the Department of Public |
|
Safety of the State of Texas shall enter into the memorandum of |
|
understanding required by Section 1001.060, Education Code, as |
|
added by this article. |
|
SECTION 4.70. (a) Not later than June 1, 2023, the Texas |
|
Commission of Licensing and Regulation shall adopt rules necessary |
|
to implement the changes in law made by this article to Chapter |
|
1001, Education Code. |
|
(b) A driver education school license, driving safety |
|
school license, or course provider license issued under Chapter |
|
1001, Education Code, before the date the Texas Department of |
|
Licensing and Regulation implements the changes described in |
|
Subsection (a) of this section continues to be valid until the date |
|
the license expires. On expiration of that license, the license |
|
holder shall apply for a new license under Chapter 1001, Education |
|
Code, as amended by this article, to continue to provide services |
|
for which a license is required by that chapter. |
|
(c) Notwithstanding Chapter 1001, Education Code, as |
|
amended by this article, a person who provides driver education |
|
course materials to persons conducting parent-taught driver |
|
education under Section 1001.112, Education Code, as amended by |
|
this article, is not required to hold a parent-taught driver |
|
education provider license under Chapter 1001, Education Code, |
|
before November 1, 2023. |
|
SECTION 4.71. The changes in law made by this article to |
|
Section 106.115, Alcoholic Beverage Code, and Article 45.051, Code |
|
of Criminal Procedure, with respect to participation in a |
|
court-ordered program or course, apply to a court order entered on |
|
or after September 1, 2021. A court order entered before that date |
|
is governed by the law in effect on the date the order was entered, |
|
and the former law is continued in effect for that purpose. |
|
SECTION 4.72. To the extent of any conflict, this article |
|
prevails over another Act of the 87th Legislature, Regular Session, |
|
2021, relating to nonsubstantive additions to and corrections in |
|
enacted codes. |
|
ARTICLE 5. RESIDENTIAL SERVICE CONTRACTS |
|
SECTION 5.01. Section 1101.006, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1101.006. APPLICATION OF SUNSET ACT. The Texas Real |
|
Estate Commission is subject to Chapter 325, Government Code (Texas |
|
Sunset Act). Unless continued in existence as provided by that |
|
chapter, the commission is abolished and this chapter and [,] |
|
Chapter 1102[, and Chapter 1303] of this code and Chapter 221, |
|
Property Code, expire September 1, 2025. |
|
SECTION 5.02. Section 1304.003(a), Occupations Code, is |
|
amended by amending Subdivision (2) and adding Subdivision (4) to |
|
read as follows: |
|
(2) "Service contract" means an agreement that is |
|
entered into for a separately stated consideration and for a |
|
specified term under which a provider agrees to: |
|
(A) repair, replace, or maintain a product, or |
|
provide indemnification for the repair, replacement, or |
|
maintenance of a product, for operational or structural failure or |
|
damage caused by a defect in materials or workmanship or by normal |
|
wear; |
|
(B) provide identity recovery, if the service |
|
contract is financed under Chapter 348 or 353, Finance Code; [or] |
|
(C) provide compensation to the buyer of a |
|
vehicle on the total constructive loss under a depreciation benefit |
|
optional member program; or |
|
(D) provide a service, reimbursement, or payment |
|
under a residential service contract. |
|
(4) "Residential service contract" means a service |
|
contract of any duration under which a provider agrees to, in the |
|
event of the operational or structural failure of, damage caused by |
|
a power surge to, a defect in materials or workmanship of, or damage |
|
caused by normal wear to a structural component, an appliance, or an |
|
electrical, plumbing, heating, cooling, or air-conditioning system |
|
of a residential property that is attached to or located on the |
|
residential property: |
|
(A) service, maintain, repair, or replace all or |
|
any part of the structural component, appliance, or electrical, |
|
plumbing, heating, cooling, or air-conditioning system; |
|
(B) provide incidental payment of indemnity |
|
under limited circumstances, including food spoilage; or |
|
(C) provide reimbursement or payment instead of |
|
service, repair, or replacement when a part, structural component, |
|
appliance, or service provider or technician is unavailable. |
|
SECTION 5.03. Section 1304.003(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) A service contract described by Subsection (a)(2)(A) |
|
may [also] provide for: |
|
(1) incidental payment or indemnity under limited |
|
circumstances, including towing, rental, and emergency road |
|
service; |
|
(2) the repair or replacement of a product for damage |
|
resulting from a power surge or for accidental damage incurred in |
|
handling the product; |
|
(3) identity recovery, if the service contract is |
|
financed under Chapter 348 or 353, Finance Code; or |
|
(4) the replacement of a motor vehicle key or key fob |
|
in the event the key or key fob is inoperable, lost, or stolen. |
|
SECTION 5.04. Section 1304.004(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) This chapter does not apply to: |
|
(1) a warranty; |
|
(2) a maintenance agreement; |
|
(3) a service contract sold or offered for sale to a |
|
person who is not a consumer; |
|
(4) [a residential service contract sold by an entity |
|
licensed by the Texas Real Estate Commission under Chapter 1303; |
|
[(5)] an agreement issued by an automobile service club |
|
that holds a certificate of authority under Chapter 722, |
|
Transportation Code; |
|
(5) [(6)] a service contract sold by a motor vehicle |
|
dealer on a motor vehicle sold by that dealer, if the dealer: |
|
(A) is the provider; |
|
(B) is licensed as a motor vehicle dealer under |
|
Chapter 2301; and |
|
(C) covers its obligations under the service |
|
contract with a reimbursement insurance policy; or |
|
(6) [(7)] a contract offered by a local exchange |
|
telephone company that provides for the repair of inside telephone |
|
wiring, if: |
|
(A) the contract term does not exceed one month; |
|
and |
|
(B) the consumer can terminate the contract |
|
before a new contract term begins without liability except for |
|
payment of charges for the term that has begun. |
|
SECTION 5.05. Subchapter A, Chapter 1304, Occupations Code, |
|
is amended by adding Section 1304.0041 to read as follows: |
|
Sec. 1304.0041. CERTAIN EXEMPT AGREEMENTS. This chapter |
|
does not apply to: |
|
(1) a performance guarantee offered by: |
|
(A) the builder of a residential property; or |
|
(B) the manufacturer or seller of an appliance or |
|
other system or component of a residential property; |
|
(2) a residential service contract executed before |
|
August 28, 1979; |
|
(3) a guarantee or warranty that is: |
|
(A) designed to guarantee or warrant the repair |
|
or service of an appliance, system, or component of a residential |
|
property; and |
|
(B) issued by a person who sells, services, |
|
repairs, or replaces the appliance, system, or component at the |
|
time or before the guarantee or warranty is issued; |
|
(4) a service or maintenance agreement or a warranty |
|
that: |
|
(A) is sold, offered for sale, or issued by a |
|
manufacturer or merchant who manufactures or sells a product or |
|
part of a product, including a structural component, an appliance, |
|
or an electrical, plumbing, heating, cooling, or air-conditioning |
|
system of a building or residence; and |
|
(B) provides for, warrants, or guarantees the |
|
maintenance, repair, replacement, or performance of the product or |
|
part of the product; or |
|
(5) home warranty insurance as defined by Section |
|
2005.001, Insurance Code. |
|
SECTION 5.06. Section 1304.005, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 1304.005. EXEMPTIONS FROM CERTAIN OTHER LAWS. |
|
Marketing, selling, offering for sale, issuing, making, proposing |
|
to make, and administering a service contract are exempt from: |
|
(1) [Chapter 1303; |
|
[(2)] Chapter 722, Transportation Code; and |
|
(2) [(3)] the Insurance Code and other laws of this |
|
state regulating the business of insurance. |
|
SECTION 5.07. Section 1304.151, Occupations Code, is |
|
amended by amending Subsection (b) and adding Subsection (b-4) to |
|
read as follows: |
|
(b) If the provider ensures its obligations under |
|
Subsection (a)(2), the amount maintained in the reserve account may |
|
not be less than an amount equal to 40 percent of the gross |
|
consideration the provider received from consumers from the sale of |
|
all service contracts issued and outstanding in this state, minus |
|
any claims paid. The executive director may review and examine the |
|
reserve account. Except as provided by Subsections [Subsection] |
|
(b-1) and (b-4), the amount of the security deposit may not be less |
|
than $250,000. The provider must submit to the executive director |
|
on request a copy of the provider's financial statements that must |
|
be prepared in accordance with generally accepted accounting |
|
principles, be without qualification as to the going concern status |
|
of the provider, and be audited by an independent certified public |
|
accountant. The commission by rule may require the provider to |
|
submit additional financial reports. |
|
(b-4) The amount of the security deposit required under |
|
Subsection (b) may not be less than $25,000 for a provider of a |
|
residential service contract. |
|
SECTION 5.08. Section 1304.156, Occupations Code, is |
|
amended by adding Subsection (f) to read as follows: |
|
(f) A residential service contract must state that the |
|
provider agrees that, under normal circumstances, the provider will |
|
initiate the performance of services not later than 48 hours after |
|
the contract holder requests the services. |
|
SECTION 5.09. Subchapter D, Chapter 1304, Occupations Code, |
|
is amended by adding Section 1304.157 to read as follows: |
|
Sec. 1304.157. RESIDENTIAL SERVICE CONTRACTS. (a) A |
|
person may not sell, offer to sell, arrange or solicit the sale of, |
|
or receive an application for a residential service contract unless |
|
the person is: |
|
(1) employed by a provider or administrator of a |
|
residential service contract who is licensed under this chapter; or |
|
(2) licensed as a real estate sales agent, real estate |
|
broker, mobile home dealer, or insurance agent in this state. |
|
(b) Notwithstanding Subsection (a), a person compensated by |
|
a provider or administrator, but who is not employed by that |
|
provider or administrator, may sell, offer to sell, arrange or |
|
solicit the sale of, or receive an application for a residential |
|
service contract if the contract contains the following statement |
|
in at least 10-point boldface type: "NOTICE: THIS COMPANY PAYS |
|
PERSONS NOT EMPLOYED BY THE PROVIDER FOR THE SALE, ADVERTISING, |
|
INSPECTION, OR PROCESSING OF A RESIDENTIAL SERVICE CONTRACT UNDER |
|
CHAPTER 1304, OCCUPATIONS CODE." For purposes of Subsection (a) and |
|
this subsection, a person is employed by a provider or |
|
administrator if, in connection with the person selling, offering |
|
to sell, arranging or soliciting the sale of, or receiving |
|
applications for residential service contracts, the provider or |
|
administrator: |
|
(1) directs and controls the person's performance; and |
|
(2) is responsible for representations made by the |
|
person when acting within the scope of the person's employment. |
|
(c) Notwithstanding Section 1304.151(a)(1), a provider of a |
|
residential service contract may use a reimbursement insurance |
|
policy issued by a captive insurance company as defined by Section |
|
964.001, Insurance Code, to insure the provider's residential |
|
service contracts if the provider maintains a funded reserve equal |
|
to not less than 25 percent of the gross consideration the provider |
|
received from consumers from the sale of all the provider's service |
|
contracts issued and outstanding in this state, minus any claims |
|
paid. A reimbursement insurance policy issued to a residential |
|
service contract provider in accordance with this subsection: |
|
(1) is not subject to Section 1304.152; and |
|
(2) is considered to satisfy the requirements of |
|
Sections 1304.1025 and 1304.151(a)(1) for purposes of this chapter. |
|
SECTION 5.10. Chapter 1303, Occupations Code, is repealed. |
|
SECTION 5.11. Not later than June 1, 2022, the Texas |
|
Commission of Licensing and Regulation shall adopt rules necessary |
|
to implement the changes in law made by this article to Chapter |
|
1304, Occupations Code. |
|
SECTION 5.12. (a) A residential service company licensed |
|
under former Chapter 1303, Occupations Code, that on May 1, 2021, |
|
maintained security in accordance with former Section 1303.154, |
|
Occupations Code, shall continue to maintain security in an amount |
|
not less than the amount required under that section until |
|
September 1, 2026, and the former law is continued in effect for |
|
that purpose. |
|
(b) A residential service company described by Subsection |
|
(a) of this section that is operating as a residential service |
|
contract provider licensed under Chapter 1304, Occupations Code, as |
|
amended by this article, is not required to comply with the security |
|
requirements for residential service contract providers under |
|
Chapter 1304, Occupations Code, as amended by this article, until |
|
September 1, 2026. |
|
(c) Not later than September 1, 2022, a residential service |
|
company described by Subsection (a) of this section that is |
|
operating as a residential service contract provider licensed under |
|
Chapter 1304, Occupations Code, as amended by this article, shall |
|
update the company's financial security documents to: |
|
(1) list the Texas Department of Licensing and |
|
Regulation as a party to the financial security document; and |
|
(2) replace each reference to the Texas Real Estate |
|
Commission with a reference to the Texas Department of Licensing |
|
and Regulation. |
|
SECTION 5.13. (a) In this section, "department" means the |
|
Texas Department of Licensing and Regulation. |
|
(b) On September 1, 2021: |
|
(1) a license issued by the Texas Real Estate |
|
Commission under former Chapter 1303, Occupations Code, is |
|
continued in effect as a license of the department; |
|
(2) all rules, fees, policies, procedures, decisions, |
|
and forms of the Texas Real Estate Commission that relate to a |
|
program or activity transferred under this article are continued in |
|
effect as rules, fees, policies, procedures, decisions, and forms |
|
of the Texas Commission of Licensing and Regulation or the |
|
department, as applicable, and remain in effect until changed by |
|
the Texas Commission of Licensing and Regulation or the department; |
|
and |
|
(3) a complaint, investigation, contested case, or |
|
other proceeding related to a program that is transferred under |
|
this article and that is pending on September 1, 2021, is |
|
transferred without change in status to the Texas Commission of |
|
Licensing and Regulation or the department, as appropriate. |
|
(c) On September 1, 2021: |
|
(1) all money, contracts, leases, property, software |
|
source code and documentation, records, and obligations of the |
|
Texas Real Estate Commission relating to a program or activity |
|
transferred to the department under this article are transferred to |
|
the department; and |
|
(2) the unexpended and unobligated balance of any |
|
money appropriated by the legislature relating to that program or |
|
activity is transferred to the department. |
|
(d) As soon as practicable after September 1, 2021, the |
|
Texas Real Estate Commission shall transfer to the Texas Commission |
|
of Licensing and Regulation or the department, as appropriate, any |
|
bond, reimbursement insurance policy, or other security held for a |
|
residential service company that relates to a program or activity |
|
transferred under this article. |
|
(e) Unless the context indicates otherwise, a reference in |
|
law or administrative rule to the Texas Real Estate Commission with |
|
respect to a program or activity transferred from the Texas Real |
|
Estate Commission to the department under this article means the |
|
Texas Commission of Licensing and Regulation or the department, as |
|
appropriate. |
|
(f) The Texas Real Estate Commission shall provide the |
|
department with access to any systems, facilities, or information |
|
necessary to implement the change in law made by this article. |
|
ARTICLE 6. SPEECH-LANGUAGE PATHOLOGISTS AND AUDIOLOGISTS |
|
SECTION 6.01. Section 401.304(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) To be eligible for licensing as a speech-language |
|
pathologist or audiologist, an applicant must: |
|
(1) if the application is for a license in: |
|
(A) speech-language pathology, possess at least |
|
a master's degree with a major in at least one of the areas of |
|
communicative sciences or disorders from a program accredited by a |
|
national accrediting organization that is approved by the |
|
commission or department and recognized by the United States |
|
secretary of education under the Higher Education Act of 1965 (20 |
|
U.S.C. Section 1001 et seq.) in an accredited or approved college or |
|
university; or |
|
(B) audiology, possess at least a master's |
|
[doctoral] degree in audiology or a related hearing science from a |
|
program accredited by a national accrediting organization that is |
|
approved by the commission or department and recognized by the |
|
United States secretary of education under the Higher Education Act |
|
of 1965 (20 U.S.C. Section 1001 et seq.) in an accredited or |
|
approved college or university; |
|
(2) submit a transcript from a public or private |
|
institution of higher learning showing successful completion of |
|
course work in amounts set by the commission by rule in: |
|
(A) normal development and use of speech, |
|
language, and hearing; |
|
(B) evaluation, habilitation, and rehabilitation |
|
of speech, language, and hearing disorders; and |
|
(C) related fields that augment the work of |
|
clinical practitioners of speech-language pathology and audiology; |
|
(3) have successfully completed at least 36 semester |
|
hours in courses that are acceptable toward a graduate degree by the |
|
college or university in which the courses are taken, at least 24 of |
|
which must be in the professional area for which the license is |
|
requested; |
|
(4) have completed the minimum number of hours, |
|
established by the commission by rule, of supervised clinical |
|
experience with persons who present a variety of communication |
|
disorders; and |
|
(5) have completed the full-time supervised |
|
professional experience, as defined by commission rule, in which |
|
clinical work has been accomplished in the major professional area |
|
for which the license is being sought. |
|
SECTION 6.02. Section 401.304(a), Occupations Code, as |
|
amended by this article, applies only to a license application |
|
submitted on or after September 1, 2021. A license application |
|
submitted before that date is governed by the law in effect on the |
|
date the license application was submitted, and the former law is |
|
continued in effect for that purpose. |
|
ARTICLE 7. REGULATION OF RACING |
|
SECTION 7.01. Subchapter C, Chapter 51, Occupations Code, |
|
is amended by adding Section 51.1041 to read as follows: |
|
Sec. 51.1041. PEACE OFFICERS. (a) The department may |
|
commission as a peace officer an employee who has been certified as |
|
qualified to be a peace officer by the Texas Commission on Law |
|
Enforcement. |
|
(b) A peace officer commissioned by the department may |
|
enforce any provision of this chapter relating to the regulation of |
|
racing or any law establishing a program regulated by the |
|
department under Subtitle A-1, Title 13, related to the regulation |
|
of racing. |
|
(c) A peace officer commissioned under this section has the |
|
powers, privileges, and immunities of a peace officer while |
|
carrying out duties authorized by this chapter or a law |
|
establishing a program regulated by the department. |
|
SECTION 7.02. Section 2021.003, Occupations Code, is |
|
amended by amending Subdivisions (2), (8), (9), (14), (20), (21), |
|
(24), (35), and (54) and adding Subdivisions (2-a) and (12-a) to |
|
read as follows: |
|
(2) "Active license" means a racetrack license |
|
designated by the department [commission] as active. |
|
(2-a) "Advisory board" means the Texas Racing Advisory |
|
Board. |
|
(8) "Commission" means the Texas [Racing] Commission |
|
of Licensing and Regulation. |
|
(9) "Concessionaire" means a person licensed by the |
|
department [commission] to sell refreshments or souvenirs at a |
|
racetrack. |
|
(12-a) "Department" means the Texas Department of |
|
Licensing and Regulation. |
|
(14) "Executive director" means the executive |
|
director of the department [commission]. |
|
(20) "Horsemen's organization" means an organization |
|
recognized by the department [commission] that: |
|
(A) represents horse owners and trainers in |
|
negotiating and contracting with racetrack associations on |
|
subjects relating to racing; and |
|
(B) represents and advocates the interests of |
|
horse owners and trainers before administrative, legislative, and |
|
judicial forums. |
|
(21) "Inactive license" means a racetrack license |
|
designated by the department [commission] as inactive. |
|
(24) "Maiden" means a horse that has never won a race |
|
at a race meeting authorized by the department [commission] or by |
|
another racing jurisdiction. |
|
(35) "Performance" means the consecutive running of a |
|
specified number of greyhound races as determined by the department |
|
[commission]. |
|
(54) "Trainer" means a person who is licensed by the |
|
department [commission] to train horses or greyhounds. |
|
SECTION 7.03. Sections 2021.004(1) and (5), Occupations |
|
Code, are amended to read as follows: |
|
(1) "Authorized agent" means a person appointed by an |
|
owner of a horse to represent the owner. The term is limited to a |
|
person who is appointed by a written instrument that the department |
|
[commission] acknowledges and approves. |
|
(5) "Jockey" or "apprentice jockey" means a |
|
professional rider licensed by the department [commission] to ride |
|
in horse races. |
|
SECTION 7.04. Section 2021.006, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2021.006. RELEASE OF CIVIL LIABILITY. A commission |
|
member, the executive director, a department [commission] |
|
employee, a steward or judge, a racetrack association, a horsemen's |
|
organization, or any other person regulated under this subtitle is |
|
not liable for a cause of action that arises out of that person's |
|
performance or exercise of discretion in the implementation or |
|
enforcement of this subtitle or a rule adopted under this subtitle |
|
if the person has acted in good faith. |
|
SECTION 7.05. Sections 2021.008(a), (b), (c), and (d), |
|
Occupations Code, are amended to read as follows: |
|
(a) The advisory board [commission] is subject to Chapter |
|
325, Government Code (Texas Sunset Act). The advisory board shall |
|
be reviewed during the period in which the commission and |
|
department are reviewed under Section 51.002. Unless the advisory |
|
board is continued in existence and the commission and department |
|
are continued in existence as provided by that section, [chapter,] |
|
and except as provided by Subsections (b) and (c), [the commission |
|
is abolished and] this subtitle expires on the date provided by that |
|
section [September 1, 2021]. |
|
(b) If, at the time the commission, department, and advisory |
|
board would be abolished under Subsection (a), a racetrack |
|
association has outstanding long-term liabilities: |
|
(1) the racetrack association may continue to operate |
|
for a period not to exceed one year after those liabilities are |
|
satisfied; and |
|
(2) the commission, the department, and this subtitle |
|
are continued in effect for the purpose of regulating that |
|
racetrack association under this subtitle. |
|
(c) If the commission, the department, and this subtitle are |
|
continued in effect under Subsection (b), the commission and the |
|
department are [is] abolished and this subtitle expires on the |
|
first day of the state fiscal year following the state fiscal year |
|
in which the commission certifies to the secretary of state that no |
|
racetrack associations are operating under the terms of Subsection |
|
(b). |
|
(d) A racetrack association that continues to operate under |
|
Subsection (b) may not incur any new liability without commission |
|
or department approval. At the beginning of that period, the |
|
commission or department shall: |
|
(1) review the outstanding liabilities of the |
|
racetrack association; and |
|
(2) set a specific date by which the racetrack |
|
association must retire its outstanding liabilities. |
|
SECTION 7.06. The heading to Chapter 2022, Occupations |
|
Code, is amended to read as follows: |
|
CHAPTER 2022. TEXAS RACING ADVISORY BOARD [COMMISSION] |
|
SECTION 7.07. The heading to Section 2022.001, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2022.001. ADVISORY BOARD [COMMISSION] MEMBERSHIP. |
|
SECTION 7.08. Section 2022.001(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The Texas Racing Advisory Board [commission] consists |
|
of 11 [: |
|
[(1) seven] members appointed by the presiding officer |
|
of the commission, with commission approval, as follows: |
|
(1) one member who is a representative of a racetrack |
|
association holding a class 1 racetrack license; |
|
(2) one member who is a representative of a racetrack |
|
association holding a class 2 racetrack license; |
|
(3) one member who is a representative of a racetrack |
|
association holding a class 3 racetrack license; |
|
(4) one member who is a representative of a racetrack |
|
association holding a greyhound racetrack license; |
|
(5) one member who is a representative of the Texas |
|
Horsemen's Partnership; |
|
(6) one member who is a representative of the Texas |
|
Thoroughbred Association; |
|
(7) one member who is a representative of the Texas |
|
Quarter Horse Association; |
|
(8) one member who is a representative of the Texas |
|
Greyhound Association; |
|
(9) one member who is a veterinarian; and |
|
(10) two members of the public [governor with the |
|
advice and consent of the senate; and |
|
[(2) two ex officio members who have the right to |
|
vote]. |
|
SECTION 7.09. Subchapter A, Chapter 2022, Occupations Code, |
|
is amended by adding Section 2022.0011 to read as follows: |
|
Sec. 2022.0011. DUTIES OF ADVISORY BOARD. The advisory |
|
board shall provide advice and recommendations to the department on |
|
technical matters relevant to the administration of this subtitle. |
|
SECTION 7.10. The heading to Section 2022.002, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2022.002. TERM OF OFFICE; VACANCIES. |
|
SECTION 7.11. Section 2022.002, Occupations Code, is |
|
amended by amending Subsection (a) and adding Subsection (c) to |
|
read as follows: |
|
(a) Advisory board [Appointed commission] members hold |
|
office for staggered terms of six years with the terms of [two or] |
|
three members expiring February 1 of each odd-numbered year. |
|
(c) If a vacancy occurs during a member's term, the |
|
presiding officer of the commission, with commission approval, |
|
shall appoint a member to fill the vacancy for the remainder of the |
|
unexpired term. |
|
SECTION 7.12. Section 2022.008, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2022.008. PRESIDING OFFICER. (a) The presiding |
|
officer of the commission [governor] shall designate a [public] |
|
member of the advisory board [commission] as the presiding officer |
|
of the advisory board [commission] to serve in that capacity for a |
|
one-year term [at the pleasure of the governor]. |
|
(b) The presiding officer of the advisory board may vote on |
|
any matter before the advisory board. |
|
SECTION 7.13. The heading to Section 2022.009, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2022.009. ADVISORY BOARD [COMMISSION] MEETINGS [; |
|
RECORD OF COMMISSION VOTES]. |
|
SECTION 7.14. Section 2022.009(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The advisory board [commission] shall meet at the call |
|
of the presiding officer of the commission or the executive |
|
director [hold at least six regular meetings each year on dates |
|
fixed by the commission]. |
|
SECTION 7.15. The heading to Section 2022.052, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2022.052. [EMPLOYEES;] RESTRICTIONS ON EMPLOYMENT. |
|
SECTION 7.16. Section 2022.052(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) The commission or department may not employ or continue |
|
to employ a person who: |
|
(1) owns or controls a financial interest in a |
|
[commission] license holder under this subtitle; |
|
(2) is employed by or serves as a paid consultant to a |
|
[commission] license holder under this subtitle, an official state |
|
breed registry, or a Texas trade association, as defined by Section |
|
51.0535(a) [2022.004(a)], in the field of horse or greyhound racing |
|
or breeding; |
|
(3) owns or leases a race animal that participates in |
|
pari-mutuel racing in this state; |
|
(4) accepts or is entitled to any part of the purse or |
|
Texas-bred incentive award to be paid on a horse or a greyhound in a |
|
race conducted in this state; or |
|
(5) resides with or is related within the first degree |
|
by affinity or consanguinity to a person subject to a |
|
disqualification prescribed by this subsection. |
|
SECTION 7.17. The heading to Section 2022.103, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2022.103. DEPARTMENT [COMMISSION] INVESTIGATIVE FILES |
|
CONFIDENTIAL. |
|
SECTION 7.18. Sections 2022.103(a), (b), and (c), |
|
Occupations Code, are amended to read as follows: |
|
(a) The contents of the investigatory files of the |
|
department [commission] are not public records and are confidential |
|
except: |
|
(1) in a criminal proceeding; |
|
(2) in a hearing conducted by the State Office of |
|
Administrative Hearings or the commission; |
|
(3) on court order; or |
|
(4) with the consent of the party being investigated. |
|
(b) Except as otherwise provided by this subtitle, the |
|
files, records, information, compilations, documents, photographs, |
|
reports, summaries, and reviews of information and related matters |
|
that are collected, retained, or compiled by the Department of |
|
Public Safety in the discharge of the Department of Public Safety's |
|
[department's] duties under this subtitle are confidential and are |
|
not subject to public disclosure, but are subject to discovery by a |
|
person who is the subject of the files, records, information, |
|
compilations, documents, photographs, reports, summaries, and |
|
reviews of information and related matters that are collected, |
|
retained, or compiled by the Department of Public Safety |
|
[department] in the discharge of the Department of Public Safety's |
|
[department's] duties under this subtitle. |
|
(c) An investigation report or other document submitted by |
|
the Department of Public Safety to the department [commission] |
|
becomes part of the investigative files of the department |
|
[commission] and is subject to discovery by a person who is the |
|
subject of the investigation report or other document submitted by |
|
the Department of Public Safety [department] to the department |
|
[commission] that is part of the investigative files of the |
|
department [commission]. |
|
SECTION 7.19. Section 2022.105(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] shall require racetrack |
|
associations, managers, totalisator license holders, and |
|
concessionaires to keep books and records and to submit financial |
|
statements to the department [commission]. |
|
SECTION 7.20. The heading to Chapter 2023, Occupations |
|
Code, is amended to read as follows: |
|
CHAPTER 2023. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL |
|
POWERS AND DUTIES |
|
SECTION 7.21. Section 2023.001, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF |
|
HORSE RACING AND GREYHOUND RACING. (a) Notwithstanding any |
|
contrary provision in this subtitle, the department under the |
|
direction of the commission may license and regulate all aspects of |
|
horse racing and greyhound racing in this state, regardless of |
|
whether that racing involves pari-mutuel wagering. |
|
(b) The commission[,] in adopting rules and the department |
|
in the supervision and conduct of racing [,] shall consider the |
|
effect of a proposed [commission] action on the state's |
|
agricultural, horse breeding, horse training, greyhound breeding, |
|
and greyhound training industry. |
|
SECTION 7.22. Section 2023.002, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.002. REGULATION AND SUPERVISION OF WAGERING AT |
|
RACE MEETINGS. (a) The department [commission] shall regulate and |
|
supervise each race meeting in this state that involves wagering on |
|
the result of horse racing or greyhound racing. Each person and |
|
thing relating to the operation of a race meeting is subject to |
|
regulation and supervision by the department [commission]. |
|
(b) The commission shall adopt rules on the issuance of |
|
licenses and other rules necessary to regulate horse racing and |
|
greyhound racing and the department shall [,] issue licenses[,] and |
|
take any other necessary action relating [exclusively] to the |
|
regulation of horse racing or greyhound racing. |
|
SECTION 7.23. Section 2023.003(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The department [commission] may charge in the amount set |
|
by the commission an annual fee for licensing and regulating a track |
|
that does not offer pari-mutuel wagering or a training facility in a |
|
reasonable amount that may not exceed the actual cost of enforcing |
|
rules adopted by the commission for the licensing and regulation of |
|
races and workouts at such a facility. |
|
SECTION 7.24. Section 2023.004(d), Occupations Code, is |
|
amended to read as follows: |
|
(d) The department [commission] shall post at each |
|
racetrack notice of a meeting of the commission [under Subsection |
|
(c)] that includes an agenda of the meeting and a summary of the |
|
proposed rule. |
|
SECTION 7.25. Section 2023.006, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.006. CONSIDERATION OF PAST PERFORMANCE OF |
|
RACETRACK ASSOCIATION. In considering a pleading of a racetrack |
|
association, the department [commission] shall take into account |
|
the operating experience of the racetrack association in this |
|
state, including: |
|
(1) the financial condition of the racetrack; |
|
(2) the regulatory compliance and conduct; and |
|
(3) any other relevant matter concerning the operation |
|
of a racetrack. |
|
SECTION 7.26. Section 2023.007, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.007. RIGHT OF ENTRY. A commission member, a |
|
department employee, an authorized department [commission] agent |
|
or peace officer, a commissioned officer of the Department of |
|
Public Safety, or a peace officer of the local jurisdiction in which |
|
a racetrack association maintains a place of business may enter any |
|
part of a racetrack or any other place of business of a racetrack |
|
association at any time to enforce and administer this subtitle. |
|
SECTION 7.27. Section 2023.008, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.008. TESTIMONY AND SUBPOENA POWER. (a) For |
|
purposes of this section, "agent" means an appointed agent of the |
|
department [commission]. |
|
(b) A department employee [commission member] or an agent, |
|
while involved in carrying out functions under this subtitle, may: |
|
(1) take testimony; |
|
(2) require by subpoena the attendance of a witness; |
|
and |
|
(3) require the production of books, records, papers, |
|
correspondence, and other documents that the commission considers |
|
advisable. |
|
(c) A subpoena must be issued under the signature of the |
|
executive director or the executive director's designee |
|
[commission or an agent]. A person designated by the executive |
|
director [commission] must serve the subpoena. |
|
(d) A department employee [commission member] or an agent |
|
may administer an oath to a witness appearing before the department |
|
[commission] or an agent. |
|
(e) If a subpoena issued under this section is disobeyed, |
|
the department [commission] or an agent may invoke the aid of a |
|
Travis County district court in requiring compliance with the |
|
subpoena. A Travis County district court may issue an order |
|
requiring the person to appear and testify and to produce books, |
|
records, papers, correspondence, and documents. Failure to obey |
|
the court order shall be punished by the court as contempt. |
|
SECTION 7.28. Sections 2023.051 and 2023.052, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2023.051. RECOGNITION OF ORGANIZATION. (a) The |
|
commission by rule shall adopt criteria to recognize an |
|
organization to represent members of a segment of the racing |
|
industry, including owners, breeders, trainers, kennel operators, |
|
or other persons involved in the racing industry, in any |
|
interaction between the members of the organization and a racetrack |
|
association or the department [commission]. |
|
(b) The department [commission] may recognize an |
|
organization that meets the criteria adopted under Subsection (a). |
|
Sec. 2023.052. SECURITY FOR FEES AND CHARGES. The |
|
department [commission] may require a racetrack association to post |
|
security in an amount and form determined by the department |
|
[commission] to adequately ensure the payment of any fee or charge |
|
due to this state or the department [commission] relating to |
|
pari-mutuel racing, including a charge for drug testing. |
|
SECTION 7.29. Section 2023.053(f), Occupations Code, is |
|
amended to read as follows: |
|
(f) This section does not apply to: |
|
(1) money deposited into the Texas-bred incentive fund |
|
established under Section 2028.301; or |
|
(2) an administrative penalty remitted to the |
|
comptroller for deposit in the general revenue fund under Section |
|
2033.058. |
|
SECTION 7.30. The heading to Section 2023.054, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2023.054. [COMMISSION] STANDARDS ON GREYHOUND FARMS |
|
AND FACILITIES. |
|
SECTION 7.31. Sections 2023.056, 2023.057, 2023.058, |
|
2023.059, and 2023.061, Occupations Code, are amended to read as |
|
follows: |
|
Sec. 2023.056. COOPERATION WITH LAW ENFORCEMENT. (a) The |
|
department [commission] shall cooperate with a district attorney, a |
|
criminal district attorney, a county attorney, the Department of |
|
Public Safety, the attorney general, or a peace officer in |
|
enforcing this subtitle. |
|
(b) The department [commission], under department |
|
[commission] authority to obtain criminal history record |
|
information under Section 2023.057, shall maintain and exchange |
|
pertinent intelligence data with other states and agencies. |
|
Sec. 2023.057. ACCESS TO CRIMINAL HISTORY RECORDS. The |
|
department [commission] may obtain criminal history record |
|
information that relates to each applicant for [employment by the |
|
commission and to each applicant for] a license issued under this |
|
subtitle by the department, including an occupational license |
|
described by Section 2025.251(c), [commission] and that is |
|
maintained by the Department of Public Safety or the Federal Bureau |
|
of Investigation Identification Division. The department |
|
[commission] may refuse to issue a license to [recommend] an |
|
applicant who fails to provide a complete set of fingerprints. |
|
Sec. 2023.058. COST OF CRIMINAL HISTORY RECORD CHECK. (a) |
|
The commission shall, in determining the amount of a license fee, |
|
set the fee in at least an amount necessary to cover the cost to the |
|
department of conducting a criminal history record check on a |
|
license applicant. |
|
(b) The department [commission] shall reimburse the |
|
Department of Public Safety for the cost of conducting a criminal |
|
history record check under this subtitle. |
|
Sec. 2023.059. DISTANCE LEARNING. The department |
|
[commission] may provide assistance to members of the racing |
|
industry who are attempting to develop or implement adult, youth, |
|
or continuing education programs that use distance learning. |
|
Sec. 2023.061. BIENNIAL [ANNUAL] REPORT. (a) Not later |
|
than January 31 of each odd-numbered year, the department |
|
[commission] shall file a report with the governor, lieutenant |
|
governor, and speaker of the house of representatives. |
|
(b) The report must cover the operations of the department |
|
under this subtitle [commission] and the condition of horse |
|
breeding and racing and greyhound breeding and racing during the |
|
preceding two-year period [previous year]. |
|
(c) The department [commission] shall obtain from the |
|
Department of Public Safety a comprehensive report of any organized |
|
crime activities in this state [that the department may wish to |
|
report] and information concerning illegal gambling that may be |
|
related to this subtitle known to exist in this state. The |
|
department [commission] shall include in the biennial [annual] |
|
report the Department of Public Safety's [department's] report and |
|
any recommendations the department [commission] considers |
|
appropriate. |
|
SECTION 7.32. Sections 2023.101(b), (c), and (d), |
|
Occupations Code, are amended to read as follows: |
|
(b) The department [commission] shall employ or contract |
|
with each steward and judge for the supervision of a horse race or |
|
greyhound race meeting. |
|
(c) The department [commission] shall designate one steward |
|
or judge, as appropriate, as the presiding steward or judge for each |
|
race meeting. |
|
(d) Following the completion of a race meeting, a racetrack |
|
association may submit to the department [commission] for the |
|
department's [commission's] review written comments regarding the |
|
job performance of the stewards and judges. A racetrack |
|
association's comments submitted under this section are not |
|
binding, in any way, on the department [commission]. |
|
SECTION 7.33. Section 2023.102(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] shall require each steward |
|
or judge to annually take and pass a written examination and a |
|
medical examination. |
|
SECTION 7.34. Section 2023.103, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.103. [EMPLOYMENT OF] STATE VETERINARIANS. For |
|
each race meeting, the department [commission] shall employ or |
|
contract for at least one state veterinarian. |
|
SECTION 7.35. Section 2023.104(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The fee amount for compensating each steward, judge, and |
|
state veterinarian must be reasonable according to industry |
|
standards for the compensation of those officials at other |
|
racetracks and may not exceed the actual cost to the department |
|
[commission] for compensating the officials. |
|
SECTION 7.36. Section 2023.105, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.105. EMPLOYMENT OF OTHER RACETRACK OFFICIALS. |
|
The racetrack association shall appoint, with the department's |
|
[commission's] approval, all racetrack officials other than the |
|
officials listed in Section 2023.104. Compensation for officials |
|
not compensated by the department [commission] is determined by the |
|
racetrack association. |
|
SECTION 7.37. Section 2023.106(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The commission shall adopt rules that specify: |
|
(1) the power and duties of each race meeting |
|
official, including the power of a steward or judge to impose |
|
penalties for unethical practices or violations of racing rules; |
|
and |
|
(2) procedures for hearings conducted under this |
|
section. |
|
SECTION 7.38. Section 2023.109, Occupations Code, is |
|
amended by adding Subsection (c) to read as follows: |
|
(c) The commission may adopt rules specifying the |
|
requirements for appealing a decision and eligibility of orders for |
|
consideration under this section. |
|
SECTION 7.39. Section 2024.002(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The comptroller may inspect all books, records, and |
|
financial statements required by the commission or obtained by the |
|
department under Section 2022.105. |
|
SECTION 7.40. Sections 2024.053(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The comptroller shall certify to the department |
|
[commission] the fact that a racetrack association or totalisator |
|
company: |
|
(1) does not comply with a rule adopted by the |
|
comptroller under this chapter; |
|
(2) refuses to allow access to or inspection of any of |
|
the racetrack association's or totalisator company's required |
|
books, records, or financial statements; |
|
(3) refuses to allow access to or inspection of the |
|
totalisator system; or |
|
(4) becomes delinquent for: |
|
(A) the state's share of a pari-mutuel pool; or |
|
(B) any other tax collected by the comptroller. |
|
(b) With regard to the state's share of a pari-mutuel pool |
|
and any penalty related to the state's share, the comptroller, |
|
acting independently of the department [commission], may take any |
|
collection or enforcement action authorized under the Tax Code |
|
against a delinquent taxpayer. |
|
SECTION 7.41. Sections 2025.001 and 2025.002, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2025.001. COMMISSION AND DEPARTMENT LICENSING DUTIES. |
|
(a) To preserve and protect the public health, welfare, and safety, |
|
the commission shall adopt rules relating to license applications |
|
and the financial responsibility [, moral character,] and ability |
|
of applicants. |
|
(b) The department [commission] shall prescribe application |
|
forms for licenses issued under this subtitle and shall provide |
|
each occupational license holder with a credential. |
|
(c) The commission shall [annually] prescribe reasonable |
|
license fees for each category of license issued under this |
|
subtitle. |
|
(d) The commission by rule shall set fees in amounts |
|
reasonable and necessary to cover the department's [commission's] |
|
costs of regulating, overseeing, and licensing live and simulcast |
|
racing at racetracks. |
|
Sec. 2025.002. LICENSE AS PRIVILEGE. The operation of a |
|
racetrack and the participation in racing are privileges, not |
|
rights, granted only by the department [commission] by license and |
|
subject to reasonable and necessary conditions set by the |
|
commission and department. |
|
SECTION 7.42. Sections 2025.003(a), (c), (d), and (e), |
|
Occupations Code, are amended to read as follows: |
|
(a) An applicant for a license or license renewal under this |
|
subtitle must, except as otherwise provided by Section 2025.261, |
|
submit to the department [commission] a complete set of |
|
fingerprints for: |
|
(1) the applicant; or |
|
(2) if the applicant is not an individual, each |
|
officer or director of, and each person who owns at least a five |
|
percent interest in, the applicant. |
|
(c) A peace officer of any state[,] or any department |
|
employee designated by the executive director [district office of |
|
the commission,] shall take the fingerprints of an applicant for a |
|
license or license renewal on forms approved and furnished by the |
|
Department of Public Safety and immediately deliver the forms to |
|
the department [commission]. |
|
(d) If a complete set of fingerprints is required by the |
|
department [commission], the department [commission] shall, not |
|
later than the 10th business day after the date the department |
|
[commission] receives the fingerprints, forward the fingerprints |
|
to the Department of Public Safety or the Federal Bureau of |
|
Investigation. If the fingerprints are forwarded to the Department |
|
of Public Safety, the Department of Public Safety [department] |
|
shall: |
|
(1) classify the fingerprints and check the |
|
fingerprints against the Department of Public Safety's |
|
[department's] fingerprint files; and |
|
(2) report to the department [commission] the |
|
Department of Public Safety's [department's] findings concerning |
|
the existence or lack of a criminal record of the applicant. |
|
(e) The department [commission] may not issue a racetrack |
|
license until the report under Subsection (d) is made to the |
|
department [commission]. The department [commission] may issue a |
|
temporary occupational license before the report is made to the |
|
department [commission]. |
|
SECTION 7.43. Section 2025.051, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.051. RACETRACK LICENSE REQUIRED; CRIMINAL |
|
PENALTY. A person may not conduct wagering on a horse or greyhound |
|
race meeting without first obtaining a racetrack license issued by |
|
the department [commission]. A person who violates this section |
|
commits an offense. |
|
SECTION 7.44. Sections 2025.052(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall require each |
|
applicant for an original racetrack license to submit an |
|
application, on a form prescribed by the department [commission], |
|
containing the following information: |
|
(1) if the applicant is an individual: |
|
(A) the individual's full name; |
|
(B) the individual's date of birth; |
|
(C) the individual's physical description; |
|
(D) the individual's current address and |
|
telephone number; and |
|
(E) a statement by the individual disclosing any |
|
arrest or conviction for a felony or for a misdemeanor, except a |
|
misdemeanor under Subtitle C, Title 7, Transportation Code, or a |
|
similar misdemeanor traffic offense; |
|
(2) if the applicant is a corporation: |
|
(A) the state of incorporation; |
|
(B) the names and addresses of the corporation's |
|
agents for service of process in this state; |
|
(C) the name and address of each officer and |
|
director of the corporation; |
|
(D) the name and address of each stockholder of |
|
the corporation; |
|
(E) for each individual named under this |
|
subdivision, the information required by Subdivision (1); and |
|
(F) identification of: |
|
(i) any other beneficial owner of a share in |
|
the applicant that has absolute or contingent voting rights; |
|
(ii) any other person who directly or |
|
indirectly exercises any participation in the applicant; and |
|
(iii) any other ownership interest in the |
|
applicant that the applicant making its best effort is able to |
|
identify; |
|
(3) if the applicant is an unincorporated business |
|
association: |
|
(A) the name and address of each member of the |
|
association and, for each individual named under this subdivision, |
|
the information required by Subdivision (1); and |
|
(B) identification of: |
|
(i) any other person who exercises voting |
|
rights in the applicant or directly or indirectly exercises any |
|
participation in the applicant; and |
|
(ii) any other ownership interest in the |
|
applicant that the applicant making its best effort is able to |
|
identify; |
|
(4) the exact location at which a race meeting is to be |
|
conducted; |
|
(5) if the racetrack is in existence, whether it is |
|
owned by the applicant and, if leased to the applicant: |
|
(A) the name and address of the owner; and |
|
(B) if the owner is a corporation or |
|
unincorporated business association, the name and address of each |
|
officer and director, any stockholder or member, and each agent for |
|
service of process in this state; |
|
(6) if construction of the racetrack has not been |
|
initiated, whether it is to be owned by the applicant and, if it is |
|
to be leased to the applicant: |
|
(A) the name and address of the prospective |
|
owner; and |
|
(B) if the owner is a corporation or |
|
unincorporated business association, the information required by |
|
Subdivision (5)(B); |
|
(7) identification of: |
|
(A) any other beneficial owner of a share that |
|
has absolute or contingent voting rights in the owner or |
|
prospective owner of the racetrack; |
|
(B) any other person that directly or indirectly |
|
exercises any participation in the owner or prospective owner; and |
|
(C) all other ownership interest in the owner or |
|
prospective owner that the applicant making its best effort is able |
|
to identify; |
|
(8) a detailed statement of the applicant's assets and |
|
liabilities; |
|
(9) the type of racing to be conducted and the dates |
|
requested; |
|
(10) proof of residency as required by Section |
|
2025.201; and |
|
(11) any other information required by the department |
|
[commission]. |
|
(b) An application must be attested [sworn] to: |
|
(1) by the applicant; or |
|
(2) if the applicant is a corporation or association, |
|
by its chief executive officer. |
|
SECTION 7.45. Sections 2025.053(a) and (c), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall require each |
|
applicant for an original racetrack license to pay the required |
|
application fee. The fee must accompany the application and be paid |
|
in the form of a cashier's check, [or] certified check, or other |
|
form of payment acceptable to the department. |
|
(c) Notwithstanding this section, if a licensed racetrack |
|
petitions for a higher racetrack classification, the department |
|
[commission] shall impose fees equal to the difference between the |
|
fees previously paid and the fees required for the higher |
|
classification. |
|
SECTION 7.46. Sections 2025.054(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall require each |
|
applicant for an original racetrack license to submit with the |
|
application for inspection and review by the department |
|
[commission] a copy of each management, concession, and totalisator |
|
contract associated with the proposed license at the proposed |
|
location in which the applicant has an interest. |
|
(b) An applicant or license holder shall: |
|
(1) advise the department [commission] of any change |
|
in any management, concession, or totalisator contract; and |
|
(2) at the request of the department, provide any |
|
information the department considers necessary to review the |
|
change. |
|
SECTION 7.47. Sections 2025.055 and 2025.056, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2025.055. CONFIDENTIALITY OF APPLICATION DOCUMENTS. |
|
Documents submitted to the department [commission] under Sections |
|
2025.051-2025.054 by an applicant are subject to discovery in a |
|
suit brought under this subtitle but are not public records and are |
|
not subject to Chapter 552, Government Code. |
|
Sec. 2025.056. BACKGROUND CHECK. (a) The department |
|
[commission] shall require a complete personal, financial, and |
|
business background check of the applicant or of any person who owns |
|
an interest in or exercises control over an applicant for a |
|
racetrack license, including the partners, stockholders, |
|
concessionaires, management personnel, management firms, and |
|
creditors. |
|
(b) The department may [commission shall] refuse to issue or |
|
renew a license or may revoke a license if [, in the commission's |
|
sole discretion,] the background checks reveal anything that may be |
|
detrimental to the public interest or the racing industry. A |
|
proceeding under this section is subject to Subchapter G, Chapter |
|
51. |
|
(c) The executive director [commission] may not hold a |
|
hearing on the application, or any part of the application, of a |
|
racetrack license applicant before the 14th day after the date the |
|
completed background check of the applicant has been on file with |
|
the department [commission]. |
|
SECTION 7.48. Section 2025.057(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] may, at any time, require a |
|
holder of or applicant for a racetrack license to post security in |
|
an amount reasonably necessary, as provided by commission rule, to |
|
adequately ensure the license holder's or applicant's compliance |
|
with substantive requirements of this subtitle and commission |
|
rules. |
|
SECTION 7.49. Section 2025.058, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.058. NOTIFICATION OF COMPLETED APPLICATION. When |
|
all requirements for the applicant's licensure described in this |
|
chapter have been satisfied, the department [commission] shall |
|
notify the applicant that the application is complete. |
|
SECTION 7.50. Sections 2025.101(b), (c), (e), and (f), |
|
Occupations Code, are amended to read as follows: |
|
(b) In considering an application for a horse racetrack |
|
license under this chapter, the department [commission] shall give |
|
additional weight to evidence concerning an applicant who has |
|
experience operating a horse racetrack licensed under this |
|
subtitle. |
|
(c) The department [commission] may not issue a license to |
|
operate a class 1 or class 2 racetrack or a greyhound racetrack to a |
|
corporation unless: |
|
(1) the corporation is incorporated under the laws of |
|
this state; and |
|
(2) a majority of any of its corporate stock is owned |
|
at all times by individuals who meet the residency qualifications |
|
prescribed by Section 2025.201 for individual applicants. |
|
(e) Subsections (c) and (d) and Section 2025.201(a)(10) |
|
[2025.201(a)(12)] do not apply to an applicant for or the holder of |
|
a racetrack license if the applicant, the license holder, or the |
|
license holder's parent company is a publicly traded company. |
|
(f) The department [commission] may condition the issuance |
|
of a license under this chapter on the observance of commission |
|
rules. [The commission may amend the rules at any time and may |
|
condition the continued holding of the license on compliance with |
|
the rules as amended.] |
|
SECTION 7.51. Section 2025.102, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.102. QUALIFICATIONS FOR ISSUANCE OF RACETRACK |
|
LICENSE. (a) The department [commission] may issue a racetrack |
|
license to a qualified person if the department [commission]: |
|
(1) determines that the conduct of race meetings at |
|
the proposed racetrack and location: |
|
(A) will be in the public interest; |
|
(B) complies with all zoning laws; and |
|
(C) complies with this subtitle and commission |
|
rules; and |
|
(2) determines by clear and convincing evidence that |
|
the applicant will comply with all criminal laws of this state. |
|
(b) In determining whether to grant or deny an application |
|
for any class of racetrack license, the department [commission] may |
|
consider: |
|
(1) the applicant's financial stability; |
|
(2) the applicant's resources for supplementing the |
|
purses for races for various breeds; |
|
(3) the location of the proposed racetrack; |
|
(4) the effect of the proposed racetrack on traffic |
|
flow; |
|
(5) facilities for patrons and occupational license |
|
holders; |
|
(6) facilities for race animals; |
|
(7) availability to the racetrack of support services |
|
and emergency services; |
|
(8) the experience of the applicant's employees; |
|
(9) the potential for conflict with other licensed |
|
race meetings; |
|
(10) the anticipated effect of the race meeting on the |
|
horse or greyhound breeding industry in this state; and |
|
(11) the anticipated effect of the race meeting on the |
|
state and local economy from tourism, increased employment, and |
|
other sources. |
|
(c) The department [commission] shall make a determination |
|
on a pending application not later than the 120th day after the date |
|
the department [commission] provides the notice required under |
|
Section 2025.058. |
|
SECTION 7.52. Sections 2025.103(a), (c), and (d), |
|
Occupations Code, are amended to read as follows: |
|
(a) After a racetrack association has been granted a license |
|
to operate a racetrack and before the completion of construction at |
|
the designated place for which the license was issued, the |
|
department [commission] may, on application by the racetrack |
|
association, issue a temporary license that authorizes the |
|
racetrack association to conduct races at a location in the same |
|
county until the earlier of: |
|
(1) the second anniversary of the date of issuance of |
|
the temporary license; or |
|
(2) the completion of the permanent facility. |
|
(c) The department [commission] may set conditions and |
|
standards for issuance of a temporary license and allocation of |
|
appropriate race days. |
|
(d) The department [commission] may not issue a new |
|
temporary license or an extension of a temporary license to a person |
|
or to an individual belonging to a corporation or association that |
|
has been granted a temporary license after the temporary license |
|
has expired. |
|
SECTION 7.53. Sections 2025.104(a), (b), and (d), |
|
Occupations Code, are amended to read as follows: |
|
(a) The department [commission] shall designate each |
|
racetrack license as an active license or an inactive license. The |
|
department [commission] may change the designation of a racetrack |
|
license as appropriate. |
|
(b) The department [commission] shall designate a racetrack |
|
license as an active license if the license holder: |
|
(1) holds live racing events at the racetrack; or |
|
(2) makes good faith efforts to conduct live racing. |
|
(d) Before the first anniversary of the date a new racetrack |
|
license is issued, the department [commission] shall conduct an |
|
evaluation of the license to determine whether the license is an |
|
active or inactive license. |
|
SECTION 7.54. Section 2025.105, Occupations Code, is |
|
amended by amending Subsections (a), (b), (c), (d), and (e) and |
|
adding Subsection (g) to read as follows: |
|
(a) The commission by rule shall establish an annual renewal |
|
process for inactive licenses and may require the license holder to |
|
provide any information required for an original license |
|
application under this subtitle. An inactive license holder must |
|
complete the annual renewal process established under this section |
|
until the department [commission]: |
|
(1) designates the license as an active license; or |
|
(2) refuses to renew the license. |
|
(b) In determining whether to renew an inactive license, the |
|
department [commission] shall consider: |
|
(1) the inactive license holder's: |
|
(A) financial stability; |
|
(B) ability to conduct live racing; |
|
(C) ability to construct and maintain a |
|
racetrack; and |
|
(D) other good faith efforts to conduct live |
|
racing; and |
|
(2) other necessary factors considered in the issuance |
|
of the original license. |
|
(c) The department [commission] may refuse to renew an |
|
inactive license if, after notice and opportunity for a hearing, |
|
the department [commission] determines that: |
|
(1) renewal of the license is not in the best interests |
|
of the racing industry or the public; or |
|
(2) the license holder has failed to make a good faith |
|
effort to conduct live racing. |
|
(d) The department [commission] shall consult with the |
|
advisory board, members of the racing industry, and other key |
|
stakeholders in developing the license renewal process under this |
|
section. |
|
(e) The commission shall set and the department shall |
|
collect renewal fees in amounts reasonable and necessary to cover |
|
the costs of administering and enforcing this section. |
|
(g) A proceeding under this section is a contested case for |
|
purposes of Chapter 2001, Government Code. |
|
SECTION 7.55. Section 2025.106, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.106. DEPARTMENT [COMMISSION] REVIEW OF ACTIVE |
|
RACETRACK LICENSE; FEE. (a) The department [commission] shall |
|
review the ownership and management of an active license issued |
|
under this chapter every five years beginning on the fifth |
|
anniversary of the date of issuance of the license. |
|
(b) In performing the review, the department [commission] |
|
may require the license holder to provide any information that |
|
would be required to be provided in connection with an original |
|
license application under this chapter. |
|
(c) The department [commission] shall charge fees for the |
|
review in amounts set by the commission as sufficient to implement |
|
this section. |
|
SECTION 7.56. Section 2025.107(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) If the death of any person causes a violation of the |
|
licensing provisions of this subtitle, the department [commission] |
|
may issue, in accordance with commission rules, a temporary license |
|
for a period not to exceed one year. |
|
SECTION 7.57. Sections 2025.108 and 2025.151, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2025.108. RACETRACK LICENSE ANNUAL FEE. The |
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commission may prescribe a reasonable annual fee to be paid to the |
|
department by each racetrack license holder. The fee must be in an |
|
amount sufficient to provide that the total amount of fees imposed |
|
under this section, the license fees prescribed under Section |
|
2025.001(c), and the renewal fees prescribed under Section |
|
2025.105(e) are sufficient to cover the costs of administering and |
|
enforcing this subtitle. |
|
Sec. 2025.151. LIMITATION ON NUMBER OF GREYHOUND RACETRACK |
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LICENSES. The department [commission] may not issue licenses for |
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more than three greyhound racetracks in this state. |
|
SECTION 7.58. Section 2025.201, Occupations Code, is |
|
amended by amending Subsections (a) and (c) and adding Subsection |
|
(d) to read as follows: |
|
(a) The department [commission] may refuse to issue a |
|
racetrack license or may revoke or suspend a license if, after |
|
notice and opportunity for a hearing, the department [commission] |
|
finds that the applicant or license holder, as appropriate: |
|
(1) has been convicted of a violation of this subtitle |
|
or a commission rule, or has aided, abetted, or conspired to commit |
|
a violation of this subtitle or a commission rule; |
|
(2) has been convicted of or placed on deferred |
|
adjudication for a felony or misdemeanor [a crime involving moral |
|
turpitude, including a conviction for which the punishment received |
|
was a suspended sentence, probation, or a nonadjudicated |
|
conviction,] that is reasonably related to the person's present |
|
fitness to hold a license under this subtitle; |
|
(3) [has violated or has caused to be violated this |
|
subtitle or a commission rule in a manner that involves moral |
|
turpitude, as distinguished from a technical violation of this |
|
subtitle or a rule; |
|
[(4)] is unqualified, by experience or otherwise, to |
|
perform the duties required of a license holder under this |
|
subtitle; |
|
(4) [(5)] failed to answer or falsely or incorrectly |
|
answered a question in an application; |
|
(5) [(6)] fails to disclose the true ownership or |
|
interest in a horse or greyhound as required by commission rules; |
|
(6) [(7)] is indebted to this state for any fee or for |
|
the payment of a penalty imposed by this subtitle or a commission |
|
rule; |
|
(7) has developed an incapacity that prevents or could |
|
prevent the applicant or license holder from conducting the |
|
applicant's or license holder's business with reasonable skill and |
|
competence and in a manner that does not endanger public safety; |
|
(8) [is not of good moral character or the person's |
|
reputation as a peaceable, law-abiding citizen in the community |
|
where the person resides is bad; |
|
[(9)] is not at least the minimum age necessary to |
|
purchase alcoholic beverages in this state; |
|
(9) [(10) is in the habit of using alcoholic beverages |
|
to an excess or uses a controlled substance as defined by Chapter |
|
481, Health and Safety Code, or a dangerous drug as defined in |
|
Chapter 483, Health and Safety Code, or is mentally incapacitated; |
|
[(11)] may be excluded from an enclosure under this |
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subtitle; |
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(10) [(12)] has not been a United States citizen |
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residing in this state for the 10 consecutive years preceding the |
|
filing of the application; |
|
(11) [(13)] has improperly used a credential, |
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including a license certificate or identification card, issued |
|
under this subtitle; |
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(12) [(14)] resides with a person whose license was |
|
revoked for cause during the 12 months preceding the date of the |
|
present application; |
|
(13) [(15) has failed or refused to furnish a true |
|
copy of the application to the commission's district office in the |
|
district in which the premises for which the license is sought are |
|
located; |
|
[(16)] is engaged or has engaged in activities or |
|
practices the department [commission] determines are detrimental |
|
to the best interests of the public and the sport of horse racing or |
|
greyhound racing; or |
|
(14) [(17)] fails to fully disclose the true owners of |
|
all interests, beneficial or otherwise, in a proposed racetrack. |
|
(c) The department [commission] may refuse to issue a |
|
license or may suspend or revoke a license of a license holder under |
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this subchapter who knowingly or intentionally allows access to an |
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enclosure where horse races or greyhound races are conducted to a |
|
person: |
|
(1) who has engaged in bookmaking, touting, or illegal |
|
wagering; |
|
(2) whose income is from illegal activities or |
|
enterprises; or |
|
(3) who has been convicted of a violation of this |
|
subtitle. |
|
(d) A proceeding under this section is a contested case for |
|
purposes of Chapter 2001, Government Code. |
|
SECTION 7.59. Section 2025.202(b), Occupations Code, is |
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amended to read as follows: |
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(b) Notwithstanding the requirements of Section 2033.151, |
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if, after notice and opportunity for a hearing as provided by |
|
Section 2033.152, the commission finds that a racetrack license |
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holder or a person employed by the racetrack has violated this |
|
subtitle or a commission rule, or if the department [commission] |
|
finds during a review or renewal that the racetrack is ineligible |
|
for a license under this chapter, the commission may: |
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(1) revoke, suspend, or refuse to renew the racetrack |
|
license; |
|
(2) impose an administrative penalty as provided under |
|
Section 2033.051; or |
|
(3) take any other action as provided by commission |
|
rule. |
|
SECTION 7.60. Section 2025.203(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The executive director [commission] may summarily |
|
suspend a racetrack license if the executive director [commission] |
|
determines that a racetrack at which races or pari-mutuel wagering |
|
are conducted under the license is being operated in a manner that |
|
constitutes an immediate threat to the health, safety, or welfare |
|
of the racing participants or the patrons. |
|
SECTION 7.61. Section 2025.204(d), Occupations Code, is |
|
amended to read as follows: |
|
(d) At the hearing, the department [commission] has the |
|
burden of proof and must present evidence in support of the order. |
|
The license holder requesting the hearing may cross-examine |
|
witnesses and show cause why the order should not be affirmed. |
|
SECTION 7.62. Sections 2025.205, 2025.251, 2025.253, |
|
2025.254, and 2025.255, Occupations Code, are amended to read as |
|
follows: |
|
Sec. 2025.205. SUMMARY SUSPENSION FINAL ORDER. (a) After |
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the hearing on the suspension of a racetrack license, the |
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commission [executive director] shall affirm, modify, or set aside, |
|
wholly or partly, the summary suspension order. An order affirming |
|
or modifying the summary suspension order is final for purposes of |
|
enforcement and appeal. |
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(b) A final order under this section may be appealed in the |
|
manner provided by Subchapter G, Chapter 2001, Government Code. |
|
Sec. 2025.251. OCCUPATIONAL LICENSE REQUIRED. (a) Except |
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as provided by this section, a person, other than as a spectator or |
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as a person placing a wager, may not participate in racing with |
|
pari-mutuel wagering without first obtaining a license from the |
|
department [commission]. A person may not engage in any occupation |
|
for which commission rules require a license under this subtitle |
|
without first obtaining a license from the department [commission]. |
|
(b) The commission by rule shall categorize the occupations |
|
of racetrack employees and determine the occupations that afford |
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the employee an opportunity to influence racing with pari-mutuel |
|
wagering. The rules must require an employee to be licensed under |
|
this subtitle if the employee: |
|
(1) works in an occupation determined by the |
|
department [commission] to afford the employee an opportunity to |
|
influence racing with pari-mutuel wagering; or |
|
(2) will likely have significant access to the |
|
backside of a racetrack or to restricted areas of the frontside of a |
|
racetrack. |
|
(c) The commission by rule may require the following persons |
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to hold an occupational license under this subtitle: |
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(1) an adoption program employee; |
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(2) an announcer; |
|
(3) an apprentice jockey; |
|
(4) an assistant farrier, plater, or blacksmith; |
|
(5) an assistant starter; |
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(6) an assistant trainer; |
|
(7) an assistant trainer/owner; |
|
(8) an association assistant management employee; |
|
(9) an association management employee; |
|
(10) an association officer or director; |
|
(11) an association staff employee; |
|
(12) an association employee other than an employee |
|
described in this subsection; |
|
(13) an association veterinarian; |
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(14) an authorized agent; |
|
(15) a chaplain; |
|
(16) a chaplain assistant; |
|
(17) an equine dental provider; |
|
(18) an exercise rider; |
|
(19) a farrier, plater, or blacksmith; |
|
(20) a groom/exercise rider; |
|
(21) a groom/hot walker; |
|
(22) a groom/pony person; |
|
(23) a jockey; |
|
(24) a jockey agent; |
|
(25) a kennel helper; |
|
(26) a kennel owner; |
|
(27) a kennel owner/owner; |
|
(28) a kennel owner/owner/trainer; |
|
(29) a kennel owner/trainer; |
|
(30) a kennel registration employee; |
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(31) a lead-out; |
|
(32) a maintenance employee; |
|
(33) a medical employee; |
|
(34) miscellaneous racetrack employees; |
|
(35) a multiple owner/stable/farm registration |
|
employee; |
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(36) a mutuel clerk; |
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(37) a mutuel employee other than a clerk; |
|
(38) an owner; |
|
(39) an owner-trainer; |
|
(40) a pony person; |
|
(41) a racing industry representative; |
|
(42) a racing industry employee; |
|
(43) a racing official; |
|
(44) a security officer; |
|
(45) a stable foreman; |
|
(46) a tattooer; |
|
(47) a test technician; |
|
(48) a trainer; |
|
(49) a training facility employee; |
|
(50) a training facility general manager; |
|
(51) a valet; |
|
(52) a vendor concessionaire; |
|
(53) a vendor concessionaire employee; |
|
(54) a vendor-totalisator company; |
|
(55) a vendor-totalisator employee; |
|
(56) a veterinarian; and |
|
(57) a veterinarian assistant. |
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Sec. 2025.253. EXAMINATION NOTIFICATION. (a) If an |
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examination is required for the issuance of a license under this |
|
subchapter, the department [commission] shall notify each examinee |
|
of the results of the examination not later than the 30th day after |
|
the date the licensing examination is administered under this |
|
subtitle. |
|
(b) If requested in writing by a person who fails a |
|
licensing examination administered under this subtitle, the |
|
department [commission] shall furnish the person with an analysis |
|
of the person's performance on the examination. |
|
Sec. 2025.254. ISSUANCE OF LICENSE. The department |
|
[commission] shall issue a license to a qualified person on |
|
application and payment of the license fee. |
|
Sec. 2025.255. ISSUANCE OF IDENTIFICATION CARD. The |
|
department [commission] shall issue a license certificate under |
|
this subchapter in the form of an identification card with a |
|
photograph and other information as prescribed by the department |
|
[commission]. |
|
SECTION 7.63. Section 2025.256(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) In setting the fee schedule under Subsection (a), the |
|
commission shall include the cost of criminal history record |
|
information obtained under Section 2023.058. The department |
|
[commission] may determine the best method for recovering this cost |
|
and complying with this section, including collecting the costs |
|
over an extended period. |
|
SECTION 7.64. Section 2025.258(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] shall obtain criminal |
|
history record information on each applicant renewing an |
|
occupational license under this subchapter. |
|
SECTION 7.65. Section 2025.259, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.259. LICENSE VALID THROUGHOUT STATE. A license |
|
issued under this subchapter is valid, as determined by the |
|
department [commission], at all race meetings conducted in this |
|
state. |
|
SECTION 7.66. Section 2025.260(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) Pending investigation of an applicant's qualifications |
|
to receive an original or renewal license, the department |
|
[commission] may issue a temporary license to an applicant under |
|
this subchapter whose application appears to comply with the |
|
requirements of law and who has paid the necessary fee. |
|
SECTION 7.67. Sections 2025.261 and 2025.262, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2025.261. RECIPROCAL LICENSES; OUT-OF-STATE |
|
APPLICANTS. (a) The executive director [commission] may waive any |
|
prerequisite to obtaining a license for an applicant, including any |
|
requirement to submit a set of fingerprints, after reviewing the |
|
applicant's credentials and determining that the applicant holds a |
|
license from another state that has license requirements |
|
substantially equivalent to the requirements of this state. |
|
(b) The executive director [commission] may waive any |
|
prerequisite to obtaining a license, including any requirement to |
|
submit a set of fingerprints, for an applicant who holds a license |
|
from another state with which this state has a reciprocity |
|
agreement. The department [commission] may enter into agreements |
|
with other states to allow for licensing by reciprocity. |
|
Sec. 2025.262. GROUNDS FOR DENIAL, REVOCATION, AND |
|
SUSPENSION OF OCCUPATIONAL LICENSE. (a) The department |
|
[commission] may refuse to issue any original or renewal license |
|
under this subchapter or may revoke or suspend the license if, after |
|
notice and opportunity for a hearing, the department [commission] |
|
finds that the applicant or license holder, as appropriate: |
|
(1) has been convicted of a violation of this subtitle |
|
or a commission rule or has aided, abetted, or conspired to commit a |
|
violation of this subtitle or a commission rule; |
|
(2) has been convicted of or placed on deferred |
|
adjudication for a felony or misdemeanor [a crime involving moral |
|
turpitude] that is reasonably related to the person's present |
|
fitness to hold a license under this subtitle; |
|
(3) [has violated or has caused to be violated this |
|
subtitle or a commission rule in a manner that involves moral |
|
turpitude, as distinguished from a technical violation of this |
|
subtitle or a rule; |
|
[(4)] is unqualified, by experience or otherwise, to |
|
perform the duties required of a license holder under this |
|
subtitle; |
|
(4) [(5)] failed to answer or has falsely or |
|
incorrectly answered a question in an original or renewal |
|
application; |
|
(5) [(6)] fails to disclose the true ownership or |
|
interest in a horse or greyhound as required by commission rules; |
|
(6) [(7)] is indebted to this state for any fee or for |
|
the payment of a penalty imposed by this subtitle or a commission |
|
rule; |
|
(7) has developed an incapacity that prevents or could |
|
prevent the applicant or license holder from conducting the |
|
applicant's or license holder's business with reasonable skill and |
|
competence and in a manner that does not endanger public safety; |
|
(8) [is not of good moral character or the person's |
|
reputation as a peaceable, law-abiding citizen in the community |
|
where the person resides is bad; |
|
[(9) is in the habit of using alcoholic beverages to an |
|
excess or uses a controlled substance as defined in Chapter 481, |
|
Health and Safety Code, or a dangerous drug as defined in Chapter |
|
483, Health and Safety Code, or is mentally incapacitated; |
|
[(10)] may be excluded from an enclosure under this |
|
subtitle; |
|
(9) [(11)] has improperly used a temporary pass, |
|
license certificate, credential, or identification card issued |
|
under this subtitle; |
|
(10) [(12)] resides with a person whose license was |
|
revoked for cause during the 12 months preceding the date of the |
|
present application; |
|
(11) [(13)] has failed or refused to furnish a true |
|
copy of the application to the department's [commission's] district |
|
office in the district in which the premises for which the license |
|
is sought are located; or |
|
(12) [(14)] is engaged or has engaged in activities or |
|
practices that are detrimental to the best interests of the public |
|
and the sport of horse racing or greyhound racing. |
|
(b) A proceeding under this section is a contested case for |
|
purposes of Chapter 2001, Government Code. |
|
SECTION 7.68. Section 2026.003, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.003. FINANCIAL DISCLOSURE. (a) The commission |
|
by rule shall require that each racetrack association that holds a |
|
license for a class 1 racetrack, class 2 racetrack, or greyhound |
|
racetrack annually file with the department [commission] a detailed |
|
financial statement that: |
|
(1) contains the names and addresses of all |
|
stockholders, members, and owners of any interest in the racetrack; |
|
(2) indicates compliance during the filing period with |
|
Section 2025.101; and |
|
(3) includes any other information required by the |
|
department [commission]. |
|
(b) Each transaction that involves an acquisition or a |
|
transfer of a pecuniary interest in the racetrack association must |
|
receive prior approval from the department [commission]. A |
|
transaction that changes the ownership of the racetrack association |
|
requires submission of updated information of the type required to |
|
be disclosed under Section 2025.052 and payment of a fee to recover |
|
the costs of the criminal background check. |
|
SECTION 7.69. Section 2026.004(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) If the racetrack or enclosure designated in the license |
|
becomes unsuitable for racing because of fire, flood, or other |
|
catastrophe, the affected racetrack association, with the prior |
|
approval of the executive director [commission], may conduct a race |
|
meeting or any remaining portion of a meeting temporarily at any |
|
other racetrack if the other racetrack license holder: |
|
(1) is licensed by the department [commission] to |
|
conduct the same type of racing as may be conducted by the affected |
|
racetrack association; and |
|
(2) consents to the usage. |
|
SECTION 7.70. Sections 2026.005 and 2026.006, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2026.005. CHANGE OF RACING LOCATION. On request of a |
|
racetrack association, the department [commission] shall amend a |
|
racetrack license to change the location of the racetrack if the |
|
department [commission] determines that: |
|
(1) the conduct of race meetings at the proposed new |
|
location will be in the public interest; |
|
(2) there was not a competing applicant for the |
|
original license; and |
|
(3) the racetrack association's desire to change |
|
location is not the result of a subterfuge in the original licensing |
|
proceeding. |
|
Sec. 2026.006. LEASE OF RACETRACK PREMISES. (a) The |
|
commission by rule may provide for the department to authorize a |
|
racetrack association, as lessee, to contract for the lease of a |
|
racetrack and the surrounding structures. |
|
(b) The department [commission] may not approve a lease if: |
|
(1) the lease appears to be a subterfuge to evade |
|
compliance with Section 2025.101 or 2025.201; |
|
(2) the racetrack and surrounding structures do not |
|
conform to the rules adopted under this subtitle; or |
|
(3) the lessee, prospective lessee, or lessor is |
|
disqualified from holding a racetrack license. |
|
(c) Each lessor and lessee under this section must comply |
|
with the disclosure requirements of Section 2025.052(a)(1). The |
|
department [commission] may not approve a lease if the lessor and |
|
lessee do not provide the required information. |
|
SECTION 7.71. Section 2026.007(e), Occupations Code, is |
|
amended to read as follows: |
|
(e) The commission shall adopt rules implementing this |
|
section, including rules: |
|
(1) requiring the report and correction of: |
|
(A) an inappropriate condition on the premises of |
|
a racetrack, including a failure to properly maintain the premises, |
|
that interferes with the administration of this subtitle; and |
|
(B) a condition on the premises that makes the |
|
premises unsafe for a race participant, patron, or animal; and |
|
(2) determining the methods and manner by which the |
|
executive director may determine and remedy inappropriate or unsafe |
|
conditions on the premises, including the methods and manner in |
|
which the department [executive director] may conduct inspections |
|
of the premises and remedy emergency situations. |
|
SECTION 7.72. Section 2026.008, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.008. SUPERVISION OF CONSTRUCTION, RENOVATION, |
|
AND MAINTENANCE; ENFORCEMENT. (a) The commission by rule shall |
|
adopt a method of supervising and approving the construction, |
|
renovation, or maintenance of any building or improvement on the |
|
premises of a racetrack. |
|
(b) The commission shall adopt rules relating to: |
|
(1) the approval of plans and specifications; |
|
(2) the contents of plans and specifications; |
|
(3) the maintenance of records to ensure compliance |
|
with approved plans and specifications; |
|
(4) the content and filing of construction progress |
|
reports by the racetrack association to the department |
|
[commission]; |
|
(5) the inspection by the department [commission] or |
|
others; |
|
(6) the method for making a change or amendment to an |
|
approved plan or specification; and |
|
(7) any other method of supervision or oversight |
|
necessary. |
|
(c) If the department [commission] has grounds to believe |
|
that a racetrack association has failed to comply with the |
|
requirements of this section, a representative of the racetrack |
|
association shall appear before the commission or department to |
|
consider the issue of compliance with rules adopted under this |
|
section. |
|
(d) Before a building or improvement may be used by a |
|
racetrack association, the department [commission] shall determine |
|
whether: |
|
(1) the construction, renovation, or maintenance of |
|
the building or improvement was completed in accordance with the |
|
approved plans and specifications; and |
|
(2) other [commission] requirements under this |
|
subtitle were met. |
|
(e) If the department [commission] determines that the |
|
racetrack association failed to comply with a requirement of this |
|
section or a rule adopted under this section, the department |
|
[commission] shall initiate an enforcement action against the |
|
racetrack association. In addition to any other authorized |
|
enforcement action, the department [commission] may rescind any |
|
live or simulcast race date of any racetrack association that has |
|
failed to comply with the requirements of this section. |
|
SECTION 7.73. Section 2026.013(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The department [commission] may impose disciplinary |
|
action against a racetrack for violations of this subtitle and |
|
commission rules by the racetrack's employees as provided by |
|
Section 2025.202. |
|
SECTION 7.74. Section 2026.051, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.051. COMMISSION RULES REGARDING EXCLUSION OR |
|
EJECTION. The commission shall adopt rules providing for the |
|
exclusion or ejection from an enclosure where horse or greyhound |
|
races are conducted, or from specified portions of an enclosure, of |
|
a person: |
|
(1) who has engaged in bookmaking, touting, or illegal |
|
wagering; |
|
(2) whose income is from illegal activities or |
|
enterprises; |
|
(3) who has been convicted of a violation of this |
|
subtitle; |
|
(4) who has been convicted of theft; |
|
(5) who has been convicted under the penal law of |
|
another jurisdiction for committing an act that would have |
|
constituted a violation of any rule described in this section; |
|
(6) who has committed a corrupt or fraudulent act in |
|
connection with horse or greyhound racing or pari-mutuel wagering |
|
or who has committed any act tending or intended to corrupt horse or |
|
greyhound racing or pari-mutuel wagering; |
|
(7) who is under suspension or has been excluded or |
|
ejected from a racetrack by the department [commission] or a |
|
steward in this state or by a corresponding authority in another |
|
state because of corrupt or fraudulent practices or other acts |
|
detrimental to racing; |
|
(8) who has submitted a forged pari-mutuel ticket or |
|
has altered or forged a pari-mutuel ticket for cashing or who has |
|
cashed or caused to be cashed an altered, raised, or forged |
|
pari-mutuel ticket; |
|
(9) [who has been convicted of committing a lewd or |
|
lascivious act or other crime involving moral turpitude; |
|
[(10)] who is guilty of [boisterous or] disorderly |
|
conduct while inside an enclosure; |
|
(10) [(11)] who is an agent [or habitual associate] of |
|
a person excludable under this section; or |
|
(11) [(12)] who has been convicted of a felony. |
|
SECTION 7.75. Sections 2026.052(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) A person who is excluded or ejected from an enclosure |
|
under a commission rule may apply to the department [commission] |
|
for a hearing on the question of the applicability of the rule to |
|
that person. |
|
(b) A proceeding [An application for a hearing] under this |
|
section is [Subsection (a) constitutes] a contested case for |
|
purposes of [under] Chapter 2001, Government Code. If, after a |
|
hearing as provided under Subchapter C of that chapter, the |
|
commission determines that the exclusion or ejection was proper: |
|
(1) the commission shall issue an order to that effect |
|
[and enter the order in the commission's minutes]; and |
|
(2) the person shall continue to be excluded from each |
|
racetrack association's enclosure. |
|
SECTION 7.76. Section 2026.102(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A class 1 racetrack is a racetrack on which live racing |
|
is conducted for a number of days in a calendar year, as determined |
|
by the department [commission] under Subchapter A, Chapter 2029. |
|
SECTION 7.77. Section 2026.103, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.103. CLASS 2 RACETRACK. (a) A class 2 racetrack |
|
is a racetrack on which live racing is conducted for a number of |
|
days, as determined by the department [commission] under Subchapter |
|
A, Chapter 2029. |
|
(b) A class 2 racetrack is entitled to conduct 60 days of |
|
live racing in a calendar year. A racetrack association may request |
|
additional or fewer days of live racing. If, after receipt of a |
|
request from a racetrack association, the department [commission] |
|
determines additional or fewer days to be economically feasible and |
|
in the best interest of this state and the racing industry, the |
|
department [commission] shall grant the request. |
|
(c) The department [commission] may permit a racetrack |
|
association that holds a class 2 racetrack license and that is |
|
located in a national historic district to conduct horse races for |
|
more than 60 days in a calendar year. |
|
SECTION 7.78. Section 2026.105(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) A racetrack association that holds a class 4 racetrack |
|
license may conduct live races for a number of days not to exceed |
|
five days in a calendar year on dates selected by the racetrack |
|
association and approved by the department [commission]. |
|
SECTION 7.79. Section 2026.106, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.106. WAIVER OR DEFERRAL OF CERTAIN STANDARDS FOR |
|
CLASS 4 RACETRACK. (a) In considering an application for a class 4 |
|
racetrack license, except as provided by Subsection (b), the |
|
executive director [commission] may waive or defer compliance with |
|
the department's [commission's] standards regarding the physical |
|
facilities or operations of a horse racetrack. |
|
(b) The executive director [commission] may not waive or |
|
defer compliance with standards that relate to the testing of |
|
horses or license holders for the presence of a prohibited |
|
substance, including a prohibited drug or chemical. |
|
(c) If the executive director [commission] defers |
|
compliance, the department [commission] shall, when granting the |
|
application, establish a schedule under which the license holder |
|
must comply with the standards. |
|
SECTION 7.80. Section 2026.107(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The number of race dates allowed under this subchapter |
|
relates only to live race dates. A racetrack may present simulcast |
|
races on other dates as approved by the department [commission]. |
|
SECTION 7.81. Sections 2026.151 and 2026.152, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2026.151. DEPARTMENT [COMMISSION] APPROVAL REQUIRED. |
|
(a) All concession, management, and totalisator contracts |
|
submitted by an applicant under Section 2025.054 must have the |
|
prior approval of the department [commission]. |
|
(b) The department [commission] shall refuse to approve a |
|
concession or management contract if, in the sole discretion of the |
|
department [commission], the background checks conducted under |
|
Section 2025.056 reveal anything that might be detrimental to the |
|
public interest or the racing industry. |
|
Sec. 2026.152. DEPARTMENT [COMMISSION] REVIEW OF SECURITY |
|
PLANS AND CERTAIN CONTRACTS. (a) On receipt of a plan for the |
|
security of a racetrack, or a copy of a concession, management, or |
|
totalisator contract for review under Section 2026.151, the |
|
department [commission] shall review the security plan or contract |
|
[in an executive session]. Documents submitted by an applicant to |
|
the department [commission] under this section or Section 2025.052 |
|
or 2025.054 are subject to discovery in a suit brought under this |
|
subtitle but are not public records and are not subject to Chapter |
|
552, Government Code. |
|
(b) In reviewing and approving contracts under Subsection |
|
(a), the department [commission] shall attempt to ensure the |
|
involvement of minority-owned businesses whenever possible. |
|
SECTION 7.82. Section 2026.153(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The department [commission] may not approve a |
|
management contract to operate or manage a racetrack owned by a |
|
governmental entity unless the racetrack license holder is an owner |
|
of the entity that proposes to manage the racetrack. |
|
SECTION 7.83. Section 2027.001(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) Rules adopted under this subtitle must include rules to: |
|
(1) regulate wagering by a person licensed under this |
|
subtitle; |
|
(2) prohibit wagering by a department [commission] |
|
employee; |
|
(3) prohibit a racetrack association from accepting a |
|
wager made by telephone; and |
|
(4) prohibit a racetrack association from accepting a |
|
wager made on credit. |
|
SECTION 7.84. Sections 2027.003 and 2027.004, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2027.003. WAGERING COMPUTATION EQUIPMENT. (a) |
|
Wagering authorized under this chapter may be calculated only by |
|
state-of-the-art computational equipment approved by the |
|
department [commission]. |
|
(b) The department [commission] may not require the use of a |
|
particular make of equipment. |
|
Sec. 2027.004. AUTOMATED TELLER MACHINES: RULES, |
|
LIMITATIONS, AND FEES. (a) The commission shall: |
|
(1) adopt rules providing for the use of automated |
|
teller machines in an enclosure; and |
|
(2) direct the department to limit the use of |
|
automated teller machines by allowing a person access only to the |
|
person's checking account at a bank or other financial institution. |
|
(b) A racetrack association that allows an automated teller |
|
machine in an enclosure as provided by Subsection (a) shall collect |
|
a fee of $1 for each transaction authorized under that subsection |
|
and forward the fee to the department [commission]. |
|
(c) The commission shall: |
|
(1) adopt rules providing for collection, reporting, |
|
and auditing of the transaction fee authorized under Subsection |
|
(b); and |
|
(2) direct the department to deposit the fee collected |
|
under Subsection (b) to the credit of the general revenue fund. |
|
SECTION 7.85. Section 2027.006(d), Occupations Code, is |
|
amended to read as follows: |
|
(d) If the racetrack association refuses to pay a claimant |
|
who has established satisfactorily a right to distribution from a |
|
pari-mutuel pool, the claimant may appeal to the department |
|
[commission] under procedures prescribed by commission rule. |
|
SECTION 7.86. Section 2027.052(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) This subtitle may not be construed to allow wagering in |
|
this state on simulcast races at any location other than a racetrack |
|
licensed under this subtitle that has been granted live race dates |
|
by the department [commission]. |
|
SECTION 7.87. The heading to Section 2027.053, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2027.053. DEPARTMENT [COMMISSION] APPROVAL REQUIRED |
|
FOR PARI-MUTUEL POOL INCLUSION. |
|
SECTION 7.88. Section 2027.053(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) With department [commission] approval: |
|
(1) wagers accepted on a simulcast race by any |
|
out-of-state receiving location may be included in the pari-mutuel |
|
pool for the race at the sending in-state racetrack association; |
|
and |
|
(2) wagers accepted by an in-state racetrack |
|
association on a race simulcast from out-of-state may be included |
|
in the pari-mutuel pools for the race at the out-of-state sending |
|
track. |
|
SECTION 7.89. Section 2027.054(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) The department [commission] may not approve wagering on |
|
an interstate simulcast race unless the receiving location consents |
|
to wagering on interstate simulcast races at all other receiving |
|
locations in this state. |
|
SECTION 7.90. The heading to Subchapter A, Chapter 2028, |
|
Occupations Code, is amended to read as follows: |
|
SUBCHAPTER A. [COMMISSION] OVERSIGHT OF PARI-MUTUEL RACING FUNDS |
|
SECTION 7.91. Section 2028.001(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) For any organization that receives funds generated by |
|
live or simulcast pari-mutuel racing, the commission shall adopt |
|
rules specifying the reporting, monitoring, and auditing |
|
requirements or other appropriate performance measures for: |
|
(1) any funds distributed to or used by the |
|
organization; and |
|
(2) any function or service provided by the |
|
expenditure of the funds described by Subdivision (1). |
|
SECTION 7.92. Sections 2028.002 and 2028.003, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2028.002. INDEPENDENT AUDIT REPORT; RECORDS REVIEW. |
|
(a) An organization that receives funds generated by live or |
|
simulcast pari-mutuel racing shall annually file with the |
|
department [commission] a copy of an audit report prepared by an |
|
independent certified public accountant. The audit must include a |
|
verification of any performance report sent to or required by the |
|
department [commission]. |
|
(b) The department [commission] may review any record or |
|
book of an organization that submits an independent audit to the |
|
department [commission] as the department [commission] determines |
|
necessary to confirm or further investigate the findings of an |
|
audit or report. |
|
Sec. 2028.003. SUSPENSION AND WITHHOLDING OF FUNDS. The |
|
commission [by rule] may adopt rules authorizing the department to |
|
suspend or withhold funds from an organization: |
|
(1) that the department [commission] determines has |
|
failed to comply with the requirements or performance measures |
|
adopted under Section 2028.001; or |
|
(2) for which material questions on the use of funds by |
|
the organization are raised following an independent audit or other |
|
report to the department [commission]. |
|
SECTION 7.93. Section 2028.102(e), Occupations Code, is |
|
amended to read as follows: |
|
(e) A horse racetrack association may pay a portion of the |
|
revenue set aside under this section to an organization recognized |
|
under Section 2023.051, as provided by a contract approved by the |
|
department [commission]. |
|
SECTION 7.94. Sections 2028.103(a) and (a-1), Occupations |
|
Code, are amended to read as follows: |
|
(a) A horse racetrack association shall set aside for the |
|
Texas-bred program and pay to the department [commission] an amount |
|
equal to one percent of a live multiple two wagering pool and a live |
|
multiple three wagering pool. From the set-aside amounts: |
|
(1) two percent shall be set aside for purposes of |
|
Subchapter F, Chapter 88, Education Code; and |
|
(2) the remaining amount shall be allocated as |
|
follows: |
|
(A) 10 percent may be used by the appropriate |
|
state horse breed registry for administration; and |
|
(B) the remainder shall be used for awards. |
|
(a-1) The department [commission] shall deposit money paid |
|
to the department [commission] under Subsection (a) into the |
|
Texas-bred incentive fund established under Section 2028.301. The |
|
department [commission] shall distribute the money collected under |
|
this section and deposited into the fund to the appropriate state |
|
horse breed registries for the Texas-bred program in accordance |
|
with rules adopted under Subsection (c). |
|
SECTION 7.95. Sections 2028.105(b), (d), and (d-1), |
|
Occupations Code, are amended to read as follows: |
|
(b) A horse racetrack association shall pay to the |
|
department [commission] for use by the appropriate state horse |
|
breed registry, subject to commission rules, 10 percent of the |
|
total breakage from a live pari-mutuel pool or a simulcast |
|
pari-mutuel pool. The appropriate state horse breed registries are |
|
as follows: |
|
(1) the Texas Thoroughbred [Breeders] Association for |
|
Thoroughbred horses; |
|
(2) the Texas Quarter Horse Association for quarter |
|
horses; |
|
(3) the Texas Appaloosa Horse Club for Appaloosa |
|
horses; |
|
(4) the Texas Arabian Breeders Association for Arabian |
|
horses; and |
|
(5) the Texas Paint Horse Breeders Association for |
|
paint horses. |
|
(d) The horse racetrack association shall pay to the |
|
department [commission] for deposit into the Texas-bred incentive |
|
fund established under Section 2028.301 and distribution to the |
|
appropriate state horse breed registry the remaining 80 percent of |
|
the total breakage to be allocated as follows: |
|
(1) 40 percent to the owners of the accredited |
|
Texas-bred horses that finish first, second, or third; |
|
(2) 40 percent to the breeders of accredited |
|
Texas-bred horses that finish first, second, or third; and |
|
(3) 20 percent to the owner of the stallion standing in |
|
this state at the time of conception whose Texas-bred get finish |
|
first, second, or third. |
|
(d-1) The department [commission] shall deposit the |
|
portions of total breakage paid to the department [commission] |
|
under Subsections (b) and (d) into the Texas-bred incentive fund |
|
established under Section 2028.301. The department [commission] |
|
shall distribute the money collected under this section and |
|
deposited into the fund to the appropriate state horse breed |
|
registries in accordance with this section and with rules adopted |
|
by the commission under Section 2028.103. |
|
SECTION 7.96. Section 2028.154(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A greyhound racetrack association shall pay 50 percent |
|
of the breakage to the appropriate state greyhound breed |
|
registry. Of that breakage percentage: |
|
(1) 25 percent is to be used in stakes races; and |
|
(2) 25 percent of that total breakage from a live |
|
pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to |
|
the department [commission] for deposit into the Texas-bred |
|
incentive fund established under Section 2028.301. The department |
|
[commission] shall distribute the money collected under this |
|
section and deposited into the fund to the state greyhound breed |
|
registry for use in accordance with this section and commission |
|
rules. |
|
SECTION 7.97. Section 2028.201, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2028.201. RULES. (a) The commission shall adopt |
|
rules relating to this subchapter and the oversight of the amounts |
|
allocated under Sections 2028.202(b)(1), (2), and (3) |
|
[2028.202(b)] and (c). |
|
(b) The commission shall adopt rules relating to the |
|
oversight of the amounts allocated under Section 2028.202(b)(4). |
|
SECTION 7.98. Sections 2028.202(a), (a-1), and (b), |
|
Occupations Code, are amended to read as follows: |
|
(a) A racetrack association shall distribute from the total |
|
amount deducted as provided by Sections 2028.101 and 2028.152 from |
|
each simulcast pari-mutuel pool and each simulcast cross-species |
|
pari-mutuel pool the following shares: |
|
(1) an amount equal to one percent of each simulcast |
|
pari-mutuel pool to the department [commission] for the |
|
administration of this subtitle; |
|
(2) an amount equal to 1.25 percent of each simulcast |
|
cross-species pari-mutuel pool to the department [commission] for |
|
the administration of this subtitle; |
|
(3) for a horse racetrack association, an amount equal |
|
to one percent of a multiple two wagering pool or multiple three |
|
wagering pool as the amount set aside for the Texas-bred program to |
|
be used as provided by Section 2028.103; |
|
(4) for a greyhound racetrack association, an amount |
|
equal to one percent of a multiple two wagering pool or a multiple |
|
three wagering pool as the amount set aside for the Texas-bred |
|
program for greyhound races, to be distributed and used in |
|
accordance with commission rules adopted to promote greyhound |
|
breeding in this state; and |
|
(5) the remainder as the amount set aside for purses, |
|
expenses, the sending track, and the receiving location under a |
|
contract approved by the department [commission] between the |
|
sending track and the receiving location. |
|
(a-1) A racetrack association shall pay to the department |
|
[commission] for deposit into the Texas-bred incentive fund |
|
established under Section 2028.301 the shares to be distributed |
|
under Subsections (a)(3) and (a)(4) for the Texas-bred program. |
|
The department [commission] shall distribute the money collected |
|
under this section and deposited into the fund to the appropriate |
|
state breed registries for use under the Texas-bred program. |
|
(b) From the total amount deducted under Subsection (a), a |
|
greyhound racetrack association that receives an interstate |
|
cross-species simulcast signal shall distribute the following |
|
amounts from each pari-mutuel pool wagered on the signal at the |
|
racetrack: |
|
(1) a fee of 1.5 percent to be paid to the racetrack in |
|
this state sending the signal; |
|
(2) a purse in the amount of 0.75 percent to be paid to |
|
the official state horse breed registry for Thoroughbred horses for |
|
use as purses at racetracks in this state; |
|
(3) a purse in the amount of 0.75 percent to be paid to |
|
the official state horse breed registry for quarter horses for use |
|
as purses at racetracks in this state; and |
|
(4) a purse of 4.5 percent to be deposited in the horse |
|
industry escrow account as [escrowed with the commission in the |
|
manner] provided by Section 2028.204. |
|
SECTION 7.99. Sections 2028.203 and 2028.204, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2028.203. REIMBURSEMENT FOR SIMULCAST SIGNAL COST. If |
|
a racetrack association purchases an interstate simulcast signal |
|
and the signal cost exceeds five percent of the pari-mutuel pool, |
|
the department [commission], from the horse industry escrow |
|
[escrowed] account established under Section 2028.204 |
|
[2028.202(b)(4)], shall reimburse the racetrack association an |
|
amount equal to one-half of the signal cost that exceeds five |
|
percent of the pari-mutuel pool. |
|
Sec. 2028.204. HORSE INDUSTRY ESCROW ACCOUNT; DEPOSIT AND |
|
ALLOCATION OF MONEY [IN ESCROW ACCOUNTS]. (a) The horse industry |
|
escrow account is a trust account in the department's registry |
|
composed of money deposited to the account in accordance with this |
|
subtitle. |
|
(b) A greyhound racetrack association shall deposit into |
|
the horse industry [an] escrow account [in the commission's |
|
registry] the purse set aside under Section 2028.202(b)(4). |
|
(c) [(b)] Any horse racetrack association in this state may |
|
apply to the department [commission] for receipt of money in the |
|
horse industry escrow account for use as purses. Any state horse |
|
breed registry listed in Section 2030.002(a) may apply for receipt |
|
of money in the account for any event that furthers the horse |
|
industry. The department [commission]: |
|
(1) shall determine the horse racetrack associations |
|
and state horse breed registries to be allocated money from the |
|
account and the percentages to be allocated, taking into |
|
consideration purse levels, racing opportunities, and the |
|
financial status of the requesting racetrack association or |
|
requesting breed registry; and |
|
(2) may not annually allocate more than 70 percent of |
|
the amount deposited into the account to horse racetrack |
|
associations for use as purses. |
|
SECTION 7.100. Section 2028.2041, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2028.2041. ALLOCATION OF CERTAIN FUNDS IN HORSE |
|
INDUSTRY ESCROW ACCOUNT TO GENERAL REVENUE FUND; MAXIMUM ACCOUNT |
|
BALANCE. (a) In each state fiscal biennium, the comptroller shall |
|
deposit the amounts allocated under Section 151.801(c-3), Tax Code, |
|
into the horse industry escrow account established under Section |
|
2028.204 [2028.204(b)], until the comptroller determines the |
|
amount deposited into the account in that fiscal biennium equals |
|
the greater of: |
|
(1) the amount appropriated to the department |
|
[commission] for the purposes of Section 2028.204 for that fiscal |
|
biennium; or |
|
(2) $50 million. |
|
(b) Once the comptroller determines the greater of the |
|
amount described by Subsection (a)(1) or (2) has been deposited |
|
during a state fiscal biennium into the horse industry escrow |
|
account established under Section 2028.204 [2028.204(b)], for the |
|
remainder of that fiscal biennium the comptroller shall deposit the |
|
amounts allocated under Section 151.801(c-3), Tax Code, into the |
|
general revenue fund. |
|
(c) The balance of the horse industry escrow account |
|
established under Section 2028.204 [2028.204(b)] shall not exceed |
|
$50 million. |
|
SECTION 7.101. Section 2028.205, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2028.205. ADDITIONAL ALLOCATIONS FROM HORSE INDUSTRY |
|
ESCROW ACCOUNT FOR CERTAIN RACETRACKS. (a) In addition to money |
|
allocated under Section 2028.204, a horse racetrack association |
|
operating a racetrack that is located not more than 75 miles from a |
|
greyhound racetrack that offers wagering on a cross-species |
|
simulcast signal and that sends the cross-species simulcast signal |
|
to the greyhound racetrack may apply to the department [commission] |
|
for an allocation of up to 20 percent of the money in the horse |
|
industry escrow [escrowed] account established under Section |
|
2028.204 that is attributable to the wagering on a cross-species |
|
simulcast signal at the greyhound racetrack. |
|
(b) If the applying horse racetrack association can prove to |
|
the department's [commission's] satisfaction that the racetrack |
|
association's handle has decreased directly due to wagering on an |
|
interstate cross-species simulcast signal at a greyhound racetrack |
|
located not more than 75 miles from the applying racetrack |
|
association, the department [commission] shall allocate amounts |
|
from the horse industry escrow [escrowed] account as the department |
|
[commission] considers appropriate to compensate the racetrack |
|
association for the decrease. The amounts allocated may not exceed |
|
20 percent of the money in the [escrowed] account that is |
|
attributable to the wagering on the interstate cross-species |
|
simulcast signal at the greyhound racetrack. |
|
(c) Money allocated by the department [commission] under |
|
this section may be used by the racetrack association for any |
|
purpose. |
|
SECTION 7.102. Section 2028.301, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2028.301. TEXAS-BRED INCENTIVE FUND. (a) The |
|
department [commission] shall deposit money set aside for the |
|
Texas-bred program or set aside for use by state breed registries |
|
under this chapter into an escrow account in the state treasury in |
|
the registry of the department [commission] to be known as the |
|
Texas-bred incentive fund. |
|
(b) The department [commission] shall distribute money from |
|
the Texas-bred incentive fund in accordance with this chapter and |
|
commission rules. |
|
SECTION 7.103. Chapter 2028, Occupations Code, is amended |
|
by adding Subchapter H to read as follows: |
|
SUBCHAPTER H. NATIONAL EVENT INCENTIVES |
|
Sec. 2028.401. NATIONAL EVENT INCENTIVES. (a) In this |
|
section: |
|
(1) "Breeders' Cup costs" means all costs for capital |
|
improvements and extraordinary expenses reasonably incurred for |
|
the operation of the Breeders' Cup races, including purses offered |
|
on other days in excess of the purses that the host association is |
|
required to pay by this subtitle. |
|
(2) "Breeders' Cup races" means a series of |
|
thoroughbred races known as the Breeders' Cup Championship races |
|
conducted annually by Breeders' Cup Limited on a day known as |
|
Breeders' Cup Championship day. |
|
(3) "Development organization" means an organization |
|
whose primary purpose is the marketing, promotion, or economic |
|
development of a city, county, or region of the state, including |
|
chambers of commerce, convention and visitors bureaus, and sports |
|
commissions. |
|
(4) "Political subdivision" means a city, county, or |
|
other political subdivision of the state and includes any entity |
|
created by a political subdivision. |
|
(b) An association conducting the Breeders' Cup races may |
|
apply to the reimbursement of Breeders' Cup costs amounts that |
|
would otherwise be set aside by the association for the state under |
|
Sections 2028.051 and 2028.202(a)(1) during the year in which the |
|
association hosts the Breeders' Cup races, limited to an amount |
|
equal to the lesser of the aggregate amount contributed to pay |
|
Breeders' Cup costs by political subdivisions and development |
|
organizations or $2 million. Beginning on January 1 of the year for |
|
which the association has been officially designated to host the |
|
Breeders' Cup races, amounts that would otherwise be set aside by |
|
the association for the state during that year under Sections |
|
2028.051 and 2028.202(a)(1) shall be set aside, in accordance with |
|
procedures prescribed by the comptroller, for deposit into the |
|
Breeders' Cup Developmental Account. The Breeders' Cup |
|
Developmental Account is an account in the general revenue fund. |
|
The department shall administer the account. Money in the account |
|
may be appropriated only to the department and may be used only for |
|
the purposes specified in this section. The account is exempt from |
|
the application of Section 403.095, Government Code. |
|
(c) The department shall make disbursements from the |
|
Breeders' Cup Developmental Account to reimburse Breeders' Cup |
|
costs actually incurred and paid by the association, after the |
|
association files a request for reimbursement. Disbursements from |
|
the account may not at any time exceed the aggregate amount actually |
|
paid for Breeders' Cup costs by political subdivisions and |
|
development organizations, as certified by the department to the |
|
comptroller, or $2 million, whichever is less. |
|
(d) Not later than January 31 of the year following the year |
|
in which the association hosts the Breeders' Cup races, the |
|
association shall submit to the department a report that shows: |
|
(1) the total amount of Breeders' Cup costs incurred |
|
and paid by the association; |
|
(2) the total payments made by political subdivisions |
|
and development organizations for Breeders' Cup costs; and |
|
(3) any other information requested by the commission. |
|
(e) Following receipt of the report required by Subsection |
|
(d), the department shall take any steps it considers appropriate |
|
to verify the report. Not later than March 31 of the year following |
|
the event, the department shall transfer to the credit of the |
|
general revenue fund any balance remaining in the Breeders' Cup |
|
Developmental Account after reimbursement of any remaining |
|
Breeders' Cup costs authorized under this section. |
|
(f) In addition to the authority otherwise granted in this |
|
subtitle, the commission and the comptroller may adopt rules for |
|
the administration of this section as follows: |
|
(1) the commission may adopt rules relating to: |
|
(A) auditing or other verification of Breeders' |
|
Cup costs and amounts paid or set aside by political subdivisions |
|
and development organizations; and |
|
(B) the disbursement of funds from the Breeders' |
|
Cup Developmental Account; and |
|
(2) the comptroller may adopt rules relating to: |
|
(A) procedures and requirements for transmitting |
|
or otherwise delivering to the treasury the money set aside under |
|
this section; and |
|
(B) depositing funds into the Breeders' Cup |
|
Developmental Account. |
|
(g) The commission may adopt rules to facilitate the conduct |
|
of the Breeders' Cup races, including the adoption of rules or |
|
waiver of existing rules relating to the overall conduct of racing |
|
during the Breeders' Cup races in order to assure the integrity of |
|
the races, licensing for all participants, special stabling and |
|
training requirements for foreign horses, and commingling of |
|
pari-mutuel pools. |
|
(h) To the extent of any conflict between this section and |
|
another provision of this subtitle, this section prevails. |
|
SECTION 7.104. Section 2029.001, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2029.001. ALLOCATION OF HORSE RACING DAYS; PROHIBITED |
|
RACING DAYS. (a) The department [commission] shall allocate the |
|
live and simulcast horse racing days for the conduct of live and |
|
simulcast racing at each racetrack. |
|
(b) In allocating race dates under this section, the |
|
department [commission] shall consider live race dates separately |
|
from simulcast race dates. |
|
(c) The commission by rule may prohibit racing on Sunday |
|
unless the prohibition would conflict with another provision of |
|
this subtitle. The commission may delegate to the executive |
|
director the commission's authority under this subsection. |
|
SECTION 7.105. Sections 2029.002(a) and (c), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall grant to each |
|
racetrack association additional horse racing days during a horse |
|
race meeting to be conducted as charity days. The department |
|
[commission] shall grant to each class 1 racetrack and to each class |
|
2 racetrack at least two and not more than five additional days. |
|
(c) The department [commission] shall ensure that races |
|
conducted by a racetrack association on a charity day are |
|
comparable in all respects, including the generation of revenue, to |
|
races conducted by that racetrack association on any other horse |
|
racing day. |
|
SECTION 7.106. Section 2029.003, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2029.003. ACCESS TO RACES. (a) Each racetrack shall |
|
provide reasonable access to races for all breeds of horses as |
|
determined by the racetrack association through negotiations with |
|
the representative state horse breed registry with the final |
|
approval of the department [commission]. |
|
(b) In granting approval under Subsection (a), the |
|
department [commission] shall consider: |
|
(1) the availability of competitive horses; |
|
(2) economic feasibility; and |
|
(3) public interest. |
|
SECTION 7.107. Sections 2029.052(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall grant not less than |
|
five additional greyhound racing days during a greyhound race |
|
meeting to be conducted as charity days. |
|
(b) The department [commission] shall ensure that races |
|
conducted by a racetrack association on a charity day are |
|
comparable in all respects, including the generation of revenue, to |
|
races conducted by that racetrack association on any other |
|
greyhound racing day. |
|
SECTION 7.108. Section 2029.053, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2029.053. SUBSTITUTE RACING DAYS OR ADDITIONAL RACES. |
|
If, for a reason beyond a greyhound racetrack association's control |
|
and not caused by the racetrack association's fault or neglect, it |
|
is impossible for the racetrack association to conduct a race on a |
|
day authorized by the department [commission], the executive |
|
director [commission] in the executive director's [its] discretion |
|
and at the request of the racetrack association, as a substitute for |
|
the race, may: |
|
(1) specify another day for the racetrack association |
|
to conduct racing; or |
|
(2) add additional races to already programmed events. |
|
SECTION 7.109. Section 2030.001(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) Rules adopted under this section are subject to approval |
|
by the department [commission]. |
|
SECTION 7.110. Section 2030.002(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The appropriate state horse breed registry shall act in |
|
an advisory capacity to each racetrack association and to the |
|
department [commission] for the purpose of administering Sections |
|
2030.003 and 2030.004. |
|
SECTION 7.111. Sections 2030.005 and 2030.006, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2030.005. EQUITABLE NUMBER OF RACES FOR EACH BREED. |
|
(a) A racetrack association that conducts a horse race meeting for |
|
more than one breed of horse at one racetrack shall provide that the |
|
number of races run by each breed on each day is equitable as |
|
determined by the department [commission] under Section 2029.003. |
|
(b) The commission by rule [or by order] may allow for an |
|
exception to Subsection (a) if an insufficient number of horses of a |
|
breed are available to provide sufficient competition. The |
|
commission may delegate to the executive director the commission's |
|
authority under this subsection. |
|
Sec. 2030.006. EQUITABLE STABLING. A racetrack association |
|
that conducts a horse race meeting for more than one breed of horse |
|
at one racetrack shall provide on-track stalls on an equitable |
|
basis as determined by the department [commission] under Section |
|
2029.003. |
|
SECTION 7.112. Section 2030.051(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) Rules adopted under this section are subject to approval |
|
by the department [commission]. |
|
SECTION 7.113. Section 2031.001, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2031.001. ESTABLISHMENT OF TEXAS DERBIES. (a) The |
|
commission by rule shall establish as Texas Derbies the following |
|
annual stakes races: |
|
(1) one race open to three-year-old Thoroughbreds; |
|
(2) one race open only to three-year-old Texas-bred |
|
Thoroughbreds; |
|
(3) one race open to three-year-old quarter horses; |
|
and |
|
(4) one race open only to three-year-old Texas-bred |
|
quarter horses. |
|
(b) Each Texas Derby must be held annually on a date and at |
|
the class 1 racetrack determined by the department [commission]. |
|
The department [commission] shall determine the location of each |
|
Texas Derby in consultation with: |
|
(1) each class 1 racetrack; |
|
(2) the official state horse breed registries; and |
|
(3) the official horsemen's organization. |
|
(c) The department [commission] may sell the right to name a |
|
Texas Derby. The department [commission] shall deposit the |
|
proceeds from the sale of the right to name a Texas Derby into the |
|
Texas Derby escrow purse fund established under Section 2031.004. |
|
SECTION 7.114. Section 2031.003(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) For each Texas Derby, the department [commission] shall |
|
appoint a state veterinarian to conduct a prerace examination of |
|
each horse entered in the race to determine whether the horse: |
|
(1) is healthy; and |
|
(2) meets standards set by commission rule for racing. |
|
SECTION 7.115. Sections 2031.004(a) and (e), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall establish a Texas |
|
Derby escrow purse fund. |
|
(e) The department [commission] may not: |
|
(1) use funds from the accredited Texas-bred program |
|
under Subchapter A, Chapter 2030, or the horse industry escrow |
|
[escrowed purse] account established under Section 2028.204 to fund |
|
the Texas Derby escrow purse fund; or |
|
(2) order a state horse breed registry to fund a purse |
|
for a Texas Derby, make contributions to the Texas Derby escrow |
|
purse fund, or pay the expenses of a Texas Derby race. |
|
SECTION 7.116. Chapter 2032, Occupations Code, is amended |
|
by adding Section 2032.004 to read as follows: |
|
Sec. 2032.004. RULES. The commission may adopt rules as |
|
necessary to: |
|
(1) administer this chapter; and |
|
(2) ensure public safety and welfare. |
|
SECTION 7.117. Section 2033.006(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A person commits an offense if the person knowingly |
|
possesses or displays a credential issued by the department or a |
|
false credential that identifies the person as the holder of the |
|
credential and the person knows that: |
|
(1) the credential is not issued to the person; or |
|
(2) the person is not a license holder. |
|
SECTION 7.118. Sections 2033.007(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) For purposes of this section, a request is lawful if it |
|
is made: |
|
(1) at any time by: |
|
(A) the department [commission]; |
|
(B) an authorized department [commission] agent; |
|
(C) the director or a commissioned officer of the |
|
Department of Public Safety; |
|
(D) a peace officer; or |
|
(E) a steward or judge; and |
|
(2) at any restricted location that is at a racetrack |
|
and is not a public place. |
|
(b) A person commits an offense if, after a lawful request, |
|
the person knowingly fails or refuses to: |
|
(1) display a credential issued by the department to |
|
another person; or |
|
(2) give the person's name, residence address, or date |
|
of birth to another person. |
|
SECTION 7.119. Section 2033.008(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A person commits an offense if the person knowingly |
|
wagers on the result of a horse or greyhound race conducted in this |
|
state that: |
|
(1) is held on an American Indian reservation or on |
|
American Indian trust land located in this state; and |
|
(2) is not held under the supervision of the |
|
department [commission] under rules adopted under this subtitle. |
|
SECTION 7.120. Section 2033.009(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A person commits an offense if the person is a license |
|
holder and the person knowingly permits, facilitates, or allows |
|
access to an enclosure where races are conducted to another person |
|
who the person knows: |
|
(1) has engaged in bookmaking, touting, or illegal |
|
wagering; |
|
(2) derives income from illegal activities or |
|
enterprises; |
|
(3) has been convicted of a violation of this |
|
subtitle; or |
|
(4) is excluded by the department [commission] from |
|
entering a racetrack. |
|
SECTION 7.121. Section 2033.012(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) An offense under this section is a state jail felony |
|
unless the statement was material in a department [commission] |
|
action relating to a racetrack license, in which event the offense |
|
is a felony of the third degree. |
|
SECTION 7.122. Section 2033.013(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) An offense under this section is a state jail felony if: |
|
(1) the actor: |
|
(A) is a license holder under this subtitle or a |
|
commission member or department employee; and |
|
(B) knowingly represents that a commission |
|
member or department employee or a person licensed by the |
|
department [commission] is the source of the false information; or |
|
(2) the false statement or information was contained |
|
in racing selection information provided to the public. |
|
SECTION 7.123. Sections 2033.018(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) A person consents to a search for a prohibited device, |
|
prohibited substance, or other contraband at a time and location |
|
described by Subsection (b) if the person: |
|
(1) accepts a license or other credential issued by |
|
the department under this subtitle; or |
|
(2) enters a racetrack under the authority of a |
|
license or other credential alleged to have been issued by the |
|
department under this subtitle. |
|
(b) A search may be conducted by a commissioned officer of |
|
the Department of Public Safety or a peace officer, including a |
|
peace officer employed by the department [commission], at any time |
|
and at any location at a racetrack, except a location: |
|
(1) excluded by commission rule from searches under |
|
this section; or |
|
(2) provided by a racetrack association under |
|
commission rule for private storage of personal items belonging to |
|
a license holder entering a racetrack. |
|
SECTION 7.124. Sections 2033.021, 2033.051, and 2033.052, |
|
Occupations Code, are amended to read as follows: |
|
Sec. 2033.021. DEPARTMENT [COMMISSION] AUTHORITY. This |
|
subchapter does not restrict the department's [commission's] |
|
administrative authority to enforce this subtitle or commission |
|
rules to the fullest extent authorized by this subtitle. |
|
Sec. 2033.051. IMPOSITION OF PENALTY. If the commission or |
|
the executive director determines that a person regulated under |
|
this subtitle has violated this subtitle or a rule or order adopted |
|
under this subtitle in a manner that constitutes a ground for a |
|
disciplinary action under this subtitle, the commission or the |
|
executive director may assess an administrative penalty against |
|
that person as provided by this subchapter or Subchapter F, Chapter |
|
51. |
|
Sec. 2033.052. AMOUNT OF PENALTY. (a) Notwithstanding |
|
Subchapter F, Chapter 51, the [The] commission or the executive |
|
director may assess an administrative penalty under this subchapter |
|
in an amount not to exceed $10,000 for each violation. |
|
(b) In determining the amount of the penalty, the commission |
|
or the executive director shall consider the criteria listed in |
|
Section 51.302(b) [seriousness of the violation]. |
|
SECTION 7.125. Section 2033.057(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A complaint alleging a violation of this subtitle may be |
|
instituted by the Department of Public Safety, the department |
|
[commission], or the attorney general. |
|
SECTION 7.126. Subchapter B, Chapter 2033, Occupations |
|
Code, is amended by adding Section 2033.058 to read as follows: |
|
Sec. 2033.058. DISPOSITION OF ADMINISTRATIVE PENALTY. The |
|
commission shall remit an administrative penalty collected under |
|
this subtitle to the comptroller for deposit in the general revenue |
|
fund. |
|
SECTION 7.127. Section 2033.101(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) On issuance of a cease and desist order, a department |
|
employee or authorized department agent [the executive director] |
|
shall serve a proposed cease and desist order on the racetrack |
|
association or other license holder by personal delivery or |
|
registered or certified mail, return receipt requested, to the |
|
person's last known address. |
|
SECTION 7.128. Sections 2033.102(b) and (c), Occupations |
|
Code, are amended to read as follows: |
|
(b) On receiving a request for a hearing, a department |
|
employee or authorized department agent [the executive director] |
|
shall serve notice of the time and place of the hearing by personal |
|
delivery or registered or certified mail, return receipt requested. |
|
(c) At a hearing, the department [commission] has the burden |
|
of proof and must present evidence in support of the order. Each |
|
person against whom the order is directed may cross-examine and |
|
show cause why the order should not be issued. |
|
SECTION 7.129. Section 2033.104(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) After the executive director issues [issuing] an |
|
emergency cease and desist order, a department employee or |
|
authorized department agent [the executive director] shall serve on |
|
the racetrack association or other license holder by personal |
|
delivery or registered or certified mail, return receipt requested, |
|
to the person's last known address, an order stating the specific |
|
charges and requiring the person immediately to cease and desist |
|
from the conduct that violates this subtitle or a commission rule. |
|
The order must contain a notice that a request for hearing may be |
|
filed under this section. |
|
SECTION 7.130. Sections 2033.105(c) and (d), Occupations |
|
Code, are amended to read as follows: |
|
(c) On receiving a request for a hearing, a department |
|
employee or authorized department agent [the executive director] |
|
shall serve notice of the time and place of the hearing by personal |
|
delivery or registered or certified mail, return receipt requested. |
|
The hearing must be held not later than the 10th day after the date |
|
the executive director receives the request for a hearing unless |
|
the parties agree to a later hearing date. |
|
(d) At the hearing, the department [commission] has the |
|
burden of proof and must present evidence in support of the order. |
|
The person requesting the hearing may cross-examine witnesses and |
|
show cause why the order should not be affirmed. [Section |
|
2003.021(b), Government Code, does not apply to hearings conducted |
|
under this section.] |
|
SECTION 7.131. Section 2033.106(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) If the executive director reasonably believes that a |
|
person has violated a final and enforceable cease and desist or |
|
emergency order, the executive director may: |
|
(1) initiate administrative penalty proceedings under |
|
Subchapter B; |
|
(2) refer the matter to the attorney general for |
|
enforcement by injunction and any other available remedy; or |
|
(3) pursue any other action that the executive |
|
director considers appropriate, including suspension of the |
|
person's license. |
|
SECTION 7.132. Section 2033.151, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2033.151. DISCIPLINARY ACTIONS. (a) The commission |
|
may [shall] revoke, suspend, or refuse to renew a license, place on |
|
probation a person whose license has been suspended, or reprimand a |
|
license holder for a violation of this subtitle or a commission |
|
rule. |
|
(b) If a license suspension is probated, the commission may |
|
require the license holder to report regularly to the department |
|
[commission] on matters that are the basis of the probation. |
|
(c) A disciplinary proceeding under this subtitle is |
|
governed by: |
|
(1) Chapter 51; and |
|
(2) commission rules adopted under Chapter 51. |
|
SECTION 7.133. The heading to Section 2033.152, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2033.152. PROCEEDING FOR DISCIPLINARY ACTION |
|
[HEARING] CONCERNING SUSPENSION, REVOCATION, OR REFUSAL TO RENEW |
|
LICENSE. |
|
SECTION 7.134. Section 2033.152(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) A proceeding [Proceedings] for a disciplinary action, |
|
other than those conducted by a steward or judge, in which the |
|
commission proposes to suspend, revoke, or refuse to renew a |
|
person's license is [are] governed by Chapter 2001, Government |
|
Code. |
|
SECTION 7.135. Section 2033.153, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2033.153. INJUNCTION. The department [commission] may |
|
institute an action in its own name to enjoin the violation of this |
|
subtitle. An action for an injunction is in addition to any other |
|
action, proceeding, or remedy authorized by law. |
|
SECTION 7.136. Section 2033.154(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The executive director may issue an order prohibiting |
|
the racetrack association from making any transfer from a bank |
|
account held by the racetrack association for the conduct of |
|
business under this subtitle, pending department [commission] |
|
review of the records of the account, if the executive director |
|
reasonably believes that the racetrack association has failed to |
|
maintain the proper amount of money in the horsemen's account. The |
|
executive director shall provide in the order a procedure for the |
|
racetrack association to pay certain expenses necessary for the |
|
operation of the racetrack, subject to the executive director's |
|
approval. |
|
SECTION 7.137. Section 2034.001, Occupations Code, is |
|
amended by amending Subsections (b) and (c) and adding Subsection |
|
(e) to read as follows: |
|
(b) The rules adopted under this section by the commission |
|
shall require testing to determine whether a prohibited substance |
|
has been used. |
|
(c) The [commission's] rules adopted under this section |
|
must require state-of-the-art testing methods. The testing may: |
|
(1) be prerace or postrace as determined by the |
|
department [commission]; and |
|
(2) be by an invasive or noninvasive method. |
|
(e) The commission shall adopt rules regarding disciplinary |
|
actions under this chapter, including the right of appeal to the |
|
commission from a disciplinary action under Section 2034.006. |
|
SECTION 7.138. Section 2034.002, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2034.002. MEDICATION AND DRUG TESTING PROCEDURES. (a) |
|
Medication or drug testing performed on a race animal under this |
|
subtitle must be conducted by: |
|
(1) the Texas A&M Veterinary Medical Diagnostic |
|
Laboratory; or |
|
(2) a laboratory operated by or in conjunction with or |
|
by a private or public agency selected by the department |
|
[commission] after consultation with the Texas A&M Veterinary |
|
Medical Diagnostic Laboratory. |
|
(b) Medication or drug testing performed on a human under |
|
this subtitle must be conducted by a laboratory approved by the |
|
department [commission]. |
|
SECTION 7.139. Sections 2034.003(c), (d), and (e), |
|
Occupations Code, are amended to read as follows: |
|
(c) Charges for services performed under this section must |
|
be forwarded to the department [commission] for approval of the |
|
reasonableness of the charges. Charges may include expenses |
|
incurred for travel, lodging, testing, and processing of test |
|
results. |
|
(d) The department [commission] shall determine whether the |
|
laboratory charges are reasonable in relation to industry standards |
|
by periodically surveying the drug testing charges of comparable |
|
laboratories in the United States. |
|
(e) The racetrack association that receives the services is |
|
responsible for the cost of approved charges for animal drug |
|
testing services under this section. The department [commission] |
|
shall forward a copy of the charges to the racetrack association for |
|
immediate payment. |
|
SECTION 7.140. Sections 2034.005(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] may require urine samples |
|
to be frozen for a period necessary to allow any follow-up testing |
|
to detect and identify a prohibited substance. Any other specimen |
|
shall be maintained for testing purposes in a manner required by |
|
commission rule. |
|
(b) If a test sample or specimen shows the presence of a |
|
prohibited substance, the entire sample, including any split |
|
portion remaining in the custody of the department [commission], |
|
shall be maintained until final disposition of the matter. |
|
SECTION 7.141. Section 2034.007, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2034.007. DISCIPLINARY ACTION FOR RULE VIOLATION OF |
|
PROHIBITED DEVICE OR SUBSTANCE. In addition to any other |
|
disciplinary action authorized by Chapter 51, this subtitle, or |
|
commission rule, a [A] person who violates a rule adopted under this |
|
chapter may: |
|
(1) have any license issued to the person by the |
|
department [commission] revoked or suspended; or |
|
(2) be barred for life or any other period from |
|
applying for or receiving a license issued by the department |
|
[commission] or entering any portion of a racetrack. |
|
SECTION 7.142. Section 2035.001(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] may not issue a racetrack |
|
license or accept a license application for a racetrack to be |
|
located in a county until the commissioners court has certified to |
|
the secretary of state that the qualified voters of the county have |
|
approved the legalization of pari-mutuel wagering on horse races or |
|
greyhound races in the county at an election held under this |
|
chapter. |
|
SECTION 7.143. Section 2035.052, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2035.052. PARTIES. Any person who is licensed or who |
|
has submitted to the department [commission] an application to be |
|
licensed in any capacity under this subtitle may become a named |
|
party to the contest proceedings by pleading to the petition on or |
|
before the time set for hearing and trial as provided by Section |
|
2035.053(b) or after that time by intervention on leave of court. |
|
SECTION 7.144. Section 151.801(c-3), Tax Code, is amended |
|
to read as follows: |
|
(c-3) Subject to the limitation imposed under Section |
|
2028.2041, Occupations Code, an amount equal to the proceeds from |
|
the collection of the taxes imposed by this chapter on the sale, |
|
storage, or use of horse feed, horse supplements, horse tack, horse |
|
bedding and grooming supplies, and other taxable expenditures |
|
directly related to horse ownership, riding, or boarding shall be |
|
deposited to the credit of the horse industry escrow account |
|
administered by the Texas Department of Licensing and Regulation |
|
[Racing Commission] and established under Section 2028.204, |
|
Occupations Code. |
|
SECTION 7.145. Article 2.12, Code of Criminal Procedure, is |
|
amended to read as follows: |
|
Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace |
|
officers: |
|
(1) sheriffs, their deputies, and those reserve |
|
deputies who hold a permanent peace officer license issued under |
|
Chapter 1701, Occupations Code; |
|
(2) constables, deputy constables, and those reserve |
|
deputy constables who hold a permanent peace officer license issued |
|
under Chapter 1701, Occupations Code; |
|
(3) marshals or police officers of an incorporated |
|
city, town, or village, and those reserve municipal police officers |
|
who hold a permanent peace officer license issued under Chapter |
|
1701, Occupations Code; |
|
(4) rangers, officers, and members of the reserve |
|
officer corps commissioned by the Public Safety Commission and the |
|
Director of the Department of Public Safety; |
|
(5) investigators of the district attorneys', criminal |
|
district attorneys', and county attorneys' offices; |
|
(6) law enforcement agents of the Texas Alcoholic |
|
Beverage Commission; |
|
(7) each member of an arson investigating unit |
|
commissioned by a city, a county, or the state; |
|
(8) officers commissioned under Section 37.081, |
|
Education Code, or Subchapter E, Chapter 51, Education Code; |
|
(9) officers commissioned by the General Services |
|
Commission; |
|
(10) law enforcement officers commissioned by the |
|
Parks and Wildlife Commission; |
|
(11) airport police officers commissioned by a city |
|
with a population of more than 1.18 million located primarily in a |
|
county with a population of 2 million or more that operates an |
|
airport that serves commercial air carriers; |
|
(12) airport security personnel commissioned as peace |
|
officers by the governing body of any political subdivision of this |
|
state, other than a city described by Subdivision (11), that |
|
operates an airport that serves commercial air carriers; |
|
(13) municipal park and recreational patrolmen and |
|
security officers; |
|
(14) security officers and investigators commissioned |
|
as peace officers by the comptroller; |
|
(15) officers commissioned by a water control and |
|
improvement district under Section 49.216, Water Code; |
|
(16) officers commissioned by a board of trustees |
|
under Chapter 54, Transportation Code; |
|
(17) investigators commissioned by the Texas Medical |
|
Board; |
|
(18) officers commissioned by: |
|
(A) the board of managers of the Dallas County |
|
Hospital District, the Tarrant County Hospital District, the Bexar |
|
County Hospital District, or the El Paso County Hospital District |
|
under Section 281.057, Health and Safety Code; |
|
(B) the board of directors of the Ector County |
|
Hospital District under Section 1024.117, Special District Local |
|
Laws Code; |
|
(C) the board of directors of the Midland County |
|
Hospital District of Midland County, Texas, under Section 1061.121, |
|
Special District Local Laws Code; and |
|
(D) the board of hospital managers of the Lubbock |
|
County Hospital District of Lubbock County, Texas, under Section |
|
1053.113, Special District Local Laws Code; |
|
(19) county park rangers commissioned under |
|
Subchapter E, Chapter 351, Local Government Code; |
|
(20) investigators employed by the Texas Department of |
|
Licensing and Regulation in relation to the regulation of racing |
|
under Subtitle A-1, Title 13, Occupations Code [Racing Commission]; |
|
(21) officers commissioned under Chapter 554, |
|
Occupations Code; |
|
(22) officers commissioned by the governing body of a |
|
metropolitan rapid transit authority under Section 451.108, |
|
Transportation Code, or by a regional transportation authority |
|
under Section 452.110, Transportation Code; |
|
(23) investigators commissioned by the attorney |
|
general under Section 402.009, Government Code; |
|
(24) security officers and investigators commissioned |
|
as peace officers under Chapter 466, Government Code; |
|
(25) officers appointed by an appellate court under |
|
Subchapter F, Chapter 53, Government Code; |
|
(26) officers commissioned by the state fire marshal |
|
under Chapter 417, Government Code; |
|
(27) an investigator commissioned by the commissioner |
|
of insurance under Section 701.104, Insurance Code; |
|
(28) apprehension specialists and inspectors general |
|
commissioned by the Texas Juvenile Justice Department as officers |
|
under Sections 242.102 and 243.052, Human Resources Code; |
|
(29) officers appointed by the inspector general of |
|
the Texas Department of Criminal Justice under Section 493.019, |
|
Government Code; |
|
(30) investigators commissioned by the Texas |
|
Commission on Law Enforcement under Section 1701.160, Occupations |
|
Code; |
|
(31) commission investigators commissioned by the |
|
Texas Private Security Board under Section 1702.061, Occupations |
|
Code; |
|
(32) the fire marshal and any officers, inspectors, or |
|
investigators commissioned by an emergency services district under |
|
Chapter 775, Health and Safety Code; |
|
(33) officers commissioned by the State Board of |
|
Dental Examiners under Section 254.013, Occupations Code, subject |
|
to the limitations imposed by that section; |
|
(34) investigators commissioned by the Texas Juvenile |
|
Justice Department as officers under Section 221.011, Human |
|
Resources Code; and |
|
(35) the fire marshal and any related officers, |
|
inspectors, or investigators commissioned by a county under |
|
Subchapter B, Chapter 352, Local Government Code. |
|
SECTION 7.146. (a) Section 411.096, Government Code, is |
|
repealed. |
|
(b) The following provisions of the Occupations Code are |
|
repealed: |
|
(1) Sections 2022.001(b), (c), (d), (e), and (f); |
|
(2) Section 2022.002(b); |
|
(3) Sections 2022.003, 2022.004, 2022.005, 2022.006, |
|
and 2022.007; |
|
(4) Sections 2022.009(b) and (c); |
|
(5) Sections 2022.010, 2022.011, 2022.012, 2022.013, |
|
2022.014, and 2022.051; |
|
(6) Sections 2022.052(a) and (b); |
|
(7) Sections 2022.053, 2022.054, 2022.055, 2022.056, |
|
2022.057, 2022.101, 2022.102, and 2022.106; |
|
(8) Sections 2023.004(b), (c), and (f); |
|
(9) Section 2023.009; |
|
(10) Section 2025.204(e); |
|
(11) Section 2025.258(b); |
|
(12) Sections 2033.053, 2033.054, 2033.055, and |
|
2033.056; |
|
(13) Section 2033.057(b); and |
|
(14) Sections 2033.152(a) and (c). |
|
(c) Title 6, Vernon's Texas Civil Statutes, is repealed. |
|
SECTION 7.147. (a) On September 1, 2021, the Texas Racing |
|
Commission is abolished but continues in existence until December |
|
1, 2021, for the sole purpose of transferring all obligations, |
|
property, rights, powers, duties, leases, contracts, software, |
|
data, and full-time equivalent employee positions to the Texas |
|
Department of Licensing and Regulation. The Texas Department of |
|
Licensing and Regulation assumes all of the obligations, property, |
|
rights, powers, duties, leases, contracts, software, data, and |
|
full-time equivalent employee positions of the Texas Racing |
|
Commission as they exist immediately before September 1, 2021. All |
|
unexpended funds appropriated to the Texas Racing Commission are |
|
transferred to the Texas Department of Licensing and Regulation. |
|
(b) On September 1, 2021, all full-time equivalent employee |
|
positions at the Texas Racing Commission become positions at the |
|
Texas Department of Licensing and Regulation. On September 1, |
|
2021, all employees who were employed by the Texas Racing |
|
Commission on August 31, 2021, become employees of the Texas |
|
Department of Licensing and Regulation, except for any employee in: |
|
(1) an exempt position; or |
|
(2) a position at or above salary group B27 in the |
|
Texas Position Classification Plan, 1961. |
|
(c) The Texas Racing Commission and the Texas Department of |
|
Licensing and Regulation shall, in consultation with appropriate |
|
state entities, ensure that the transfer of the obligations, |
|
property, rights, powers, duties, leases, contracts, software, |
|
data, and full-time equivalent employee positions of the Texas |
|
Racing Commission to the Texas Department of Licensing and |
|
Regulation is completed not later than December 1, 2021. |
|
(d) All rules, fees, policies, procedures, decisions, and |
|
forms adopted by the Texas Racing Commission are continued in |
|
effect as rules, fees, policies, procedures, decisions, and forms |
|
adopted by the Texas Department of Licensing and Regulation until |
|
amended or superseded by a rule, fee, policy, procedure, decision, |
|
or form adopted by the Texas Commission of Licensing and Regulation |
|
or Texas Department of Licensing and Regulation, as applicable. A |
|
license issued by the Texas Racing Commission is continued in |
|
effect as provided by the law in effect immediately before |
|
September 1, 2021. An application for a license, endorsement, or |
|
certificate of registration pending on September 1, 2021, is |
|
continued without change in status after September 1, 2021. A |
|
complaint, investigation, contested case, or other proceeding |
|
pending on September 1, 2021, is continued without change in status |
|
after September 1, 2021. |
|
(e) Beginning on the effective date of this subsection, the |
|
Texas Racing Commission shall provide the Texas Department of |
|
Licensing and Regulation, and other appropriate state entities, |
|
access to any systems or information necessary for the Texas |
|
Department of Licensing and Regulation to accept the obligations, |
|
property, rights, powers, duties, leases, contracts, software, |
|
data, and full-time equivalent employee positions transferred |
|
under this Act, including: |
|
(1) licensing, revenue, and expenditure systems and |
|
any associated databases; |
|
(2) contracts, leases, and licensing agreements; |
|
(3) online renewal and new application systems and any |
|
associated databases; |
|
(4) pending judgments and outstanding expenditures; |
|
and |
|
(5) data related to persons employed by or contracted |
|
with the Texas Racing Commission. |
|
(f) Not later than September 1, 2022, the Texas Commission |
|
of Licensing and Regulation shall adopt any rules necessary to |
|
implement the changes in law made by this Act to Subtitle A-1, Title |
|
13, Occupations Code. |
|
(g) Unless the context indicates otherwise, a reference to |
|
the Texas Racing Commission in a law or administrative rule means |
|
the Texas Department of Licensing and Regulation. |
|
SECTION 7.148. (a) Not later than December 1, 2021, the |
|
presiding officer of the Texas Commission of Licensing and |
|
Regulation, with the approval of the Texas Commission of Licensing |
|
and Regulation, shall appoint members to the Texas Racing Advisory |
|
Board in accordance with Section 2022.001, Occupations Code, as |
|
amended by this Act. A member of the Texas Racing Commission whose |
|
term expired under Section 7.147 of this Act is eligible for |
|
appointment to the advisory board. |
|
(b) The members of the Texas Racing Commission whose terms |
|
expire under Section 7.147 of this Act shall continue to provide |
|
advice to the Texas Department of Licensing and Regulation until a |
|
majority of the members of the Texas Racing Advisory Board are |
|
appointed under Subsection (a) of this section and qualified. |
|
SECTION 7.149. (a) Not later than September 1, 2023, the |
|
executive director of the Texas Department of Licensing and |
|
Regulation in accordance with Section 51.202(c), Occupations Code, |
|
shall determine with reasonable accuracy the cost to the department |
|
of the racing program and activities for which a fee is charged. |
|
(b) The executive director of the Texas Department of |
|
Licensing and Regulation, on development of the cost management |
|
procedures, shall make recommendations to the Texas Commission of |
|
Licensing and Regulation for review and consideration. |
|
SECTION 7.150. The changes in law made by this article apply |
|
to revenue received from the imposition of an administrative |
|
penalty on or after September 1, 2021, regardless of whether the |
|
penalty was imposed before, on, or after September 1, 2021. |
|
SECTION 7.151. A violation of a law that is repealed by this |
|
article is governed by the law in effect when the violation |
|
occurred, and the former law is continued in effect for that |
|
purpose. |
|
ARTICLE 8. TRANSITION AND EFFECTIVE DATE |
|
SECTION 8.01. The repeal of a statute by this Act controls |
|
over an amendment, revision, or reenactment of the statute by |
|
another Act of the 87th Legislature, Regular Session, 2021, |
|
regardless of relative dates of enactment and the amendment, |
|
revision, or reenactment of the repealed statute has no effect. |
|
SECTION 8.02. (a) Except as otherwise provided by |
|
Subsection (b) of this section, this Act takes effect September 1, |
|
2021. |
|
(b) Section 7.147(e) of this Act takes effect June 15, 2021, |
|
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 7.147(e) of this Act takes effect |
|
September 1, 2021. |
|
|
|
* * * * * |