BILL ANALYSIS

C.S.H.B. 5097

By: Guillen

Homeland Security, Public Safety & Veterans' Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that current state law governing access to criminal history record information by various entities is fragmented and inconsistent and that some agencies have unclear authority or limited ability to access or share critical background data for licensing or regulatory purposes, which can create oversight gaps or delay processing of certain applications. C.S.H.B. 5097 seeks to expand and clarify the authority of these entities, enhance public safety, ensure proper vetting of individuals in regulated professions, and promote consistency across the state with respect to access to criminal history record information.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Behavioral Health Executive Council in SECTION 17 of this bill.

ANALYSIS

C.S.H.B. 5097 amends the Government Code and Occupations Code to revise provisions relating to the access to and use of certain criminal history record information, to the procedure for obtaining that information, and to the correct terminology for certain licenses the issuance of which requires a criminal history background check.

Access to Certain Criminal History Record Information

Social Security Numbers

Criminal History Clearinghouse and Subscription Service

C.S.H.B. 5097 removes from among the information that a person entitled to receive criminal history record information from the Department of Public Safety's (DPS) criminal history record information electronic clearinghouse and subscription service must provide to DPS regarding the individual who is the subject of the requested criminal history record information the individual's social security number.

Rules

C.S.H.B. 5097 revises the authorization for rules adopted by DPS for purposes of administering provisions relating to criminal history record information to require a person requesting criminal history record information about an individual to submit to DPS one or more pieces of identifying information listed under current state law by removing the specification that such identifying information includes an individual's social security number.

Access to Criminal History Record Information Maintained by the FBI or Local Criminal Justice Agencies

C.S.H.B. 5097 revises the authorization for DPS to provide access to state and national criminal history record information under statutory provisions relating to access to criminal history record information maintained by the FBI or a local criminal justice agency to a qualified entity entitled to that information under provisions of the federal National Child Protection Act of 1993 relating to background checks by specifying that information to which the qualified entity is entitled is information regarding the entity's employees and contractors.

Access to Criminal History Record Information by Certain Entities

Consumer Credit Commissioner

C.S.H.B. 5097 creates an exception from the prohibition against the consumer credit commissioner releasing or disclosing to any person criminal history record information obtained from the FBI relating to a person whose criminal history record information the commissioner is entitled to obtain through the FBI by authorizing the commissioner to release or disclose such information to the person who is the subject of the criminal history record information.

Texas Department of Insurance

C.S.H.B. 5097 revises the entitlement of the Texas Department of Insurance (TDI) to obtain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to a person who is an applicant for a license, permit, certificate of authority, certificate of registration, or other authorization issued by TDI to engage in an activity regulated under the Insurance Code by specifying that such a person includes a person who is:

· an applicant for approval of an acquisition, change, or divestiture of control of a domestic insurer under Insurance Code provisions governing insurance holding company systems;

· an applicant for or holder of a surplus lines license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a life insurance provider or broker license under the Life Settlements Act or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a title insurance agent license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of an escrow officer license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of an agent license, temporary license, or provisional permit under Insurance Code provisions relating to agent licensing in general;

· an applicant for or holder of a general property and casualty license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a managing general agent license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a license under Insurance Code provisions relating to life, accident, and health agents or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a nonresident agent license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of an insurance adjuster license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a public insurance adjuster license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a certificate of authority under Insurance Code provisions relating to third-party administrators or associated with an entity that is an applicant for or holder of such a certificate;

· an applicant for or holder of a reinsurance intermediary license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a risk manager license or associated with an entity that is an applicant for or holder of such a license;

· an applicant for or holder of a certificate of registration under Insurance Code provisions relating to utilization review agents or associated with an entity that is an applicant for or holder of such a certificate;

· associated with an independent review organization that is an applicant for or holder of a certification under applicable Insurance Code provisions;

· associated with a discount health care program operator that is an applicant for or holder of a registration under Insurance Code provisions relating to the registration of discount health care program operators; and

· an applicant for or holder of a license under Labor Code provisions relating to professional employer organizations.

Additionally, the bill revises TDI's entitlement to obtain criminal history record information that relates to a person who is a corporate officer or director of an insurance company regulated by TDI by specifying that such a company includes a company that is an applicant for or holder of a certificate of authority under Insurance Code provisions relating to the following or under the following acts, as applicable:

· certificates of authority;

· general incorporation and regulatory requirements for insurance companies other than life, health, or accident insurance companies;

· life, health, or accident insurance companies;

· the Texas Health Maintenance Organization Act;

· certification of certain nonprofit health corporations;

· multiple employer welfare arrangements;

· health care collaboratives;

· captive insurance companies;

· the Workers' Compensation Health Care Network Act; and

· the Texas Title Insurance Act.

Health and Human Services Commission

C.S.H.B. 5097 reenacts Section 411.1106(b), Government Code, as amended by Chapters 871 (H.B. 4123) and 1089 (S.B. 1192), Acts of the 88th Legislature, Regular Session, 2023, to conform to changes made by Chapter 1089 (S.B. 1192), Acts of the 88th Legislature, Regular Session, 2023, which revised provisions relating to the Health and Human Services Commission's (HHSC) access to criminal history record information for certain HHSC employees. The bill further revises HHSC's entitlement to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to a person who is required to be fingerprinted and is an applicant for an employment or volunteer position or an applicant for a contract with HHSC in which the person, as an employee, volunteer, or contractor, as applicable, would have access to sensitive personal or financial information, as determined by the executive commissioner of HHSC, by removing the limitation that an applicable applicant must have access to such sensitive information in the following divisions:

· the eligibility services division of HHSC;

· HHSC's office of inspector general; or

· the regulatory services division of HHSC.

Agencies Administering or Operating Medical Assistance and Other Public Benefits Programs

C.S.H.B. 5097 revises the entitlement of certain agencies operating part of Medicaid to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas as follows:

· replaces a provision entitling an agency operating part of Medicaid to criminal history record information with a provision entitling an agency operating part of a public benefits program, including Medicaid, to criminal history record information; and

· accordingly, replaces a provision specifying that the criminal history record information to which these agencies are entitled relates to a Medicaid provider or a person applying to enroll as such a provider with a provision specifying that such information relates to a provider under a public benefits program administered by HHSC or a person applying to enroll as a provider under a public benefits program administered by HHSC.

The bill revises a provision establishing that the criminal history record information HHSC and the HHSC office of inspector general may obtain includes criminal history record information relating to certain persons as follows:

· removes the following from among those certain persons:

o a person with a direct or indirect ownership or control interest, as defined by federal regulations relating to the disclosure of information by providers and fiscal agents, in a provider of five percent or more; and

o a person whose information is required to be disclosed in accordance with federal regulations relating to the program integrity of Medicare and state health care programs; and

· instead, includes the following among those certain persons:

o a person that:

§ has a direct or indirect ownership interest, or a combination of direct and indirect ownership interests, that equals five percent or more in the provider or person applying to enroll as a provider;

§ owns an interest of five percent or more in a mortgage, deed of trust, promissory note, or other obligation secured by the provider or person applying to enroll as a provider if that interest equals at least five percent of the value of the property or other assets of the provider or person applying to enroll as a provider;

§ is an officer or director of the provider or person applying to enroll as a provider if that provider or applicant is organized as a corporation; or

§ is a partner in the provider or person applying to enroll as a provider if that provider or applicant is organized as a partnership; and

o a managing employee of the provider or person applying to enroll as a provider.

The bill defines the following terms for purposes of provisions relating to the access to criminal history record information of agencies administering or operating Medicaid and other public benefits programs, as revised by these bill provisions:

· "managing employee," with respect to a provider or person applying to enroll as a provider, as an individual, including a general manager, business manager, administrator, or director, who:

o exercises operational or managerial control over all or part of the provider or applicant; or

o directly or indirectly conducts the daily operations of all or part of the provider or applicant;

· "ownership interest," with respect to a provider or person applying to enroll as a provider, as having equity in the provider's or applicant's capital, stock, or profits; and

· "provider" as an individual or entity that engages in the delivery of health care services and is authorized to deliver those services in Texas, including an individual or entity that delivers health care services to recipients under Medicaid.

Licensing or Regulatory Agencies

C.S.H.B. 5097 replaces the provision subjecting the Texas State Board of Examiners of Psychologists to statutory provisions relating to the entitlement of certain licensing or regulatory agencies to obtain certain criminal history record information from DPS with a provision subjecting the Texas Behavioral Health Executive Council (BHEC) to those provisions.

Texas Commission on Environmental Quality

C.S.H.B. 5097 revises the entitlement of the Texas Commission on Environmental Quality (TCEQ) to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to certain persons as follows:

· removes from among those certain persons a person who is an applicant for a license, permit, or registration under:

o the Solid Waste Disposal Act, Health and Safety Code provisions relating to minimum standards of sanitation and health protection measures, and Health and Safety Code provisions relating to on-site sewage disposal systems;

o Occupations Code provisions relating to irrigators; or

o Water Code provisions relating to water quality control and to occupational licensing and registration;

· instead includes a person who is an applicant for any of the following among those certain persons:

o a water supply system operator license;

o a backflow prevention assembly tester license;

o a customer service inspector license;

o a municipal solid waste facility supervisor license;

o an on-site sewage facility installer license or apprentice registration;

o an on-site sewage facility maintenance provider license or maintenance technician registration;

o an on-site sewage facility designated representative license;

o an on-site sewage facility site evaluator license;

o a landscape irrigator or irrigation technician license;

o an irrigation inspector license;

o a water treatment specialist certificate;

o a wastewater treatment plant operator license;

o a wastewater collection system operator license;

o a leaking petroleum storage tank corrective action project manager or specialist license; or

o an underground storage tank on-site supervisor license; and

· with respect to those certain persons, replaces the following:

o a person who is the holder of a license, permit, or registration under a provision listed in current state law with a person who is the holder of a license, registration, or certificate under a provision listed in these bill provisions; and

o a person who requests a determination of eligibility for a license, permit, or registration from TCEQ under a provision listed in current state law with a person who requests a determination of eligibility for license, registration, or certificate under a provision listed in these bill provisions.

Manufactured Housing Division of the Texas Department of Housing and Community Affairs

C.S.H.B. 5097 revises the entitlement of the manufactured housing division of the Texas Department of Housing and Community Affairs (TDHCA) to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to certain persons as follows:

· removes an applicant for or holder of a license under the Texas Manufactured Housing Standards Act from among those certain persons; and

· instead, includes an applicant for or holder of the following licenses required by that act among those certain persons:

o a manufacturer's license;

o a retailer's license;

o a broker's license;

o an installer's license; or

o a salesperson's license.

State Fire Marshal

C.S.H.B. 5097 revises the entitlement of the state fire marshal to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to certain persons as follows:

· removes a person who is an applicant for a license issued by the state fire marshal from among those certain persons; and

· instead includes among those certain persons a person who is an applicant for or holder of:

o a fire extinguisher license or apprentice permit;

o a fire alarm technician or residential fire alarm technician license, a residential fire alarm superintendent license, or a fire alarm planning superintendent license;

o a fire alarm training school or instructor approval;

o a fire protection sprinkler system contractor registration certificate or a responsible managing employee license; or

o a license required by Occupations Code provisions governing license requirements and types of licenses for purposes of the regulation of fireworks and fireworks displays.

Texas Medical Board

C.S.H.B. 5097 revises the entitlement of the Texas Medical Board (TMB) to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to certain persons by including among those persons an applicant for employment at or current employee of the TMB. The bill establishes that the TMB is not prohibited from disclosing applicable criminal history record information in a hearing conducted by the State Office of Administrative Hearings.

Texas Department of Motor Vehicles

C.S.H.B. 5097 revises the entitlement of the Texas Department of Motor Vehicles (TxDMV) to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to certain persons by replacing the inclusion among those certain persons of a person who is an officer, director, member, manager, principal, partner, trustee, or other person acting in a representative capacity for an applicant, general distinguishing number holder, or license holder and whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code provisions relating to dealer's and manufacturer's vehicle license plates or under Occupations Code provisions relating to the sale or lease of motor vehicles or to salvage vehicle dealers with an inclusion among those certain persons of a person who is:

· an owner, officer, director, member, manager, principal, partner, trustee, or trust beneficiary of an applicant, general distinguishing number holder, or license holder; or

· an employee designated as an authorized representative by an applicant, general distinguishing number holder, or license holder and whose act or omission in the course or scope of the person's representation would be cause for denying, revoking, or suspending a general distinguishing number or license issued under those Transportation Code or Occupations Code provisions.

Texas State Board of Pharmacy

C.S.H.B. 5097 revises the entitlement of the Texas State Board of Pharmacy (TSBP) to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to certain persons as follows:

· removes from among those certain persons a person who is an applicant for or holder of:

o a license, certificate, registration, permit, or other authorization under Occupations Code provisions relating to pharmacist-interns, a license to practice pharmacy, the renewal of a license to practice pharmacy, and pharmacy technicians and pharmacy technician trainees; and

o a Class A, Class B, Class C, Class D, or Class E pharmacy license under Occupations Code provisions relating to the licensing of pharmacies and to the renewal of a pharmacy license;

· instead includes an applicant for or holder of the following under applicable Occupations Code provisions:

o a registration as a pharmacist-intern;

o a license by examination to practice pharmacy;

o a license by reciprocity to practice pharmacy;

o a provisional license to practice pharmacy; or

o a registration as a pharmacy technician or a pharmacy technician trainee; and

· with respect to the inclusion of a person who requests a determination of eligibility for a license, certificate, registration, permit, or other authorization from the TSBP, specifies that such a determination be made under Occupations Code provisions relating to a preliminary evaluation of license eligibility.

The bill entitles the TSBP to obtain a complete set of fingerprints from any of those certain persons and requires an applicant for renewal of an applicable license or registration described by these provisions who has not yet submitted a complete set of fingerprints as part of a previous application for the license or registration to submit to the TSBP a complete set of fingerprints with the person's completed application for renewal. The bill establishes that failure to submit a complete set of fingerprints under that requirement may result in a suspension or refusal to renew the applicable license or registration by the TSBP. The bill, in addition to the certain persons listed in these provisions, entitles the TSBP to certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to a person who is the following:

· a partner, officer, director, managing employee, or owner or person who controls the owner of a pharmacy; and

· an applicant for or a holder of a Class A, B, C, D, or E pharmacy license issued under Occupations Code provisions relating to pharmacy license classifications.

The bill establishes that failure or refusal of an employee of or an applicant for employment at the TSBP to provide the following on request constitutes good cause for dismissal or refusal to hire:

· a complete set of fingerprints;

· a true and complete name; or

· other information necessary for a law enforcement entity to obtain criminal history record information.

Certain Hospitals and Hospital Districts

C.S.H.B. 5097 removes the authorization for an applicable public or nonprofit hospital or hospital district to require the social security number of a person whose related criminal history record information maintained by DPS the applicable hospital or hospital district is entitled to obtain from DPS under applicable state law for purposes of the method adopted by the applicable hospital or hospital district to obtain that information.

Licensed Professional Counselors

C.S.H.B. 5097 revises the authorization for BHEC by rule to provide for the issuance of a temporary license under the Licensed Professional Counselor Act and by rule to adopt a system under which a temporary license may be issued to an eligible person as follows:

· changes the type of license that BHEC may issue from a temporary license to an associate license; and

· requires a person to meet all of the examination requirements for licensing to be eligible for the applicable license, in addition to the current requirement that a person meet all of the academic requirements for licensing.

Procedural Provision

C.S.H.B. 5097 establishes that, to the extent of any conflict, the bill prevails over another Act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 5097 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Social Security Numbers

The substitute includes provisions absent from the introduced that do the following:

· remove from among the information that a person entitled to receive criminal history record information from the DPS's criminal history record information electronic clearinghouse and subscription service must provide to DPS regarding the individual who is the subject of the requested criminal history record information the individual's social security number; and

· revise the authorization for rules adopted by DPS for purposes of administering provisions relating to criminal history record information to require a person requesting criminal history record information about an individual to submit to DPS one or more pieces of identifying information listed under current state law by removing the specification that such identifying information includes an individual's social security number.

Access to Criminal History Record Information Maintained by the FBI or Local Criminal Justice Agencies

The substitute includes a provision absent from the introduced revising the authorization for DPS to provide access to state and national criminal history record information under statutory provisions relating to access to criminal history record information maintained by the FBI or a local criminal justice agency to a qualified entity entitled to that information under provisions of the federal National Child Protection Act of 1993 relating to background checks by specifying that information to which the qualified entity is entitled is information regarding the entity's employees and contractors.

Access to Criminal History Record Information by Certain Entities

TDI

Both the introduced and the substitute revise TDI's entitlement to obtain criminal history record information that relates to a person who is an applicant for a license, permit, certificate of authority, certificate of registration, or other authorization issued by TDI to engage in an activity regulated under the Insurance Code by specifying that such a person includes certain persons. However, the versions differ in the following ways:

· while both the introduced and the substitute specify that such a person includes a person who is an applicant for or holder of one of the following licenses under applicable Insurance Code provisions or associated with an entity that is an applicant for or holder of such a license, the introduced also specified that such a person includes a person who is an applicant for or holder of a registration under those provisions or associated with an entity that is an applicant for or holder of such a registration, whereas the substitute does not:

o a surplus lines license;

o a title insurance agent license;

o a general property and casualty license;

o a managing general agent license;

o a license under Insurance Code provisions relating to life, accident, and health agents;

o a nonresident agent license;

o an insurance adjuster license;

o a public insurance adjuster license;

o a reinsurance intermediary license; and

o a risk manager license;

· while both the introduced and the substitute specify that such a person includes a person who is an applicant for or holder of a license under the Life Settlements Act or associated with an entity that is an applicant for or holder of such a license, the introduced also specified that such a person includes an applicant for or holder of a registration under that act or associated with an entity that is an applicant for or holder of such a registration, whereas the substitute does not;

· while both the introduced and the substitute specify that such a person includes an applicant for or holder of an escrow officer license under applicable Insurance Code provisions, the versions differ in the following ways:

o the substitute includes a specification absent from the introduced that such a person includes a person associated with an entity that is an applicant for or holder of an escrow officer license; and

o the introduced specified that such a person includes an applicant for or holder of a registration under Insurance Code provisions relating to escrow officers, whereas the substitute does not;

· the substitute includes a specification absent from the introduced that such a person includes an applicant for or holder of an agent license, temporary license, or provisional permit under Insurance Code provisions relating to agent licensing in general;

· whereas the introduced specified that such a person includes a person who is associated with an entity that is an applicant for or holder of a certification under Insurance Code provisions relating to independent review organizations, the substitute specifies that such a person includes a person who is associated with an independent review organization that is an applicant for or holder of such a certification;

· whereas the introduced specified that such a person includes a person who is associated with an entity that is an applicant for or holder of a registration under Insurance Code provisions relating to the registration of discount health care program operators, the substitute specifies that such a person includes a person who is associated with a discount health care program operator that is an applicant for or holder of a registration under those provisions;

· while both the introduced and the substitute specify that such a person includes an applicant for or holder of a license under Labor Code provisions relating to professional employer organizations, the versions differ in the following ways:

o the introduced specified that such a person includes an applicant for or holder of a registration under those provisions, whereas the substitute does not; and

o the introduced specified that such a person includes a person who is associated with an entity that is an applicant for such a license or registration, whereas the substitute does not; and

· the introduced specified that such a person includes a person who is associated with an entity that is an applicant for or holder of a certificate of approval under Labor Code provisions relating to group self-insurance coverage, whereas the substitute does not.

Additionally, both the introduced and the substitute revise TDI's entitlement to obtain certain criminal history record information that relates to a person who is a corporate officer or director of an insurance company regulated by TDI. However, the introduced specified that such a company includes a company that is an applicant for or holder of a certificate of authority under the Statewide Rural Health Care System Act, whereas the substitute does not.

HHSC

The substitute includes provisions absent from the introduced that do the following:

· reenact Section 411.1106(b), Government Code, as amended by Chapters 871 (H.B. 4123) and 1089 (S.B. 1192), Acts of the 88th Legislature, Regular Session, 2023, to conform to changes made by Chapter 1089 (S.B. 1192), Acts of the 88th Legislature, Regular Session, 2023, which revised provisions relating to HHSC's access to criminal history record information for certain HHSC employees; and

· revise HHSC's entitlement to obtain certain criminal history record information that relates to a person who is required to be fingerprinted and is an applicant for an employment or volunteer position or an applicant for a contract with HHSC in which the person, as an employee, volunteer, or contractor, as applicable, would have access to sensitive personal or financial information, as determined by the executive commissioner of HHSC, by removing the limitation that such an applicable applicant must have access to such sensitive information in the following division:

o the eligibility services division of HHSC;

o HHSC's office of inspector general; or

o the regulatory services division of HHSC.

Agencies Administering or Operating Medical Assistance and Other Public Benefits Programs

Both the introduced and the substitute revise the entitlement of certain agencies operating part of Medicaid to obtain certain criminal history record information. However, the substitute includes provisions absent from the introduced that do the following:

· replace a provision entitling an agency operating part of Medicaid to criminal history record information with a provision entitling an agency operating part of a public benefits program, including Medicaid, to criminal history record information;

· accordingly, replace a provision specifying that the criminal history record information to which these agencies are entitled relates to a Medicaid provider or a person applying to enroll as such a provider with a provision specifying that such information relates to a provider under a public benefits program administered by HHSC or a person applying to enroll as a provider under a public benefits program administered by HHSC; and

· define "managing employee," "ownership interest," and "provider" for purposes of provisions relating to the access to criminal history record information of agencies administering or operating Medicaid and other public benefits programs, as revised by the substitute's provisions.

Both the introduced and the substitute revise a provision establishing that the criminal history record information HHSC and the HHSC office of inspector general may obtain includes criminal history record information relating to certain persons by removing from among those certain persons a person with a direct or indirect ownership or control interest in a provider of five percent or more. However, the substitute also removes from among those certain persons a person whose information is required to be disclosed in accordance with federal regulations relating to the program integrity of Medicare and state health care programs, whereas the introduced did not. Additionally, the introduced included among those certain persons a person who, with an interest of five percent or more:

· has a direct or an indirect ownership interest or any combination thereof of five percent or more in the entity;

· is the owner of a whole or part interest in any mortgage, deed of trust, note, or other obligation secured, in whole or in part, by the entity or any of the property assets thereof, if such interest is equal to or exceeds five percent of the total property and assets of the entity; or

· is any of the following:

o an officer or a director of the entity;

o a partner in the entity if the entity is organized as a partnership;

o an agent of the entity; or

o a managing employee of the entity.

The substitute, however, includes the following among those certain persons instead:

· a person that:

o has a direct or indirect ownership interest, or a combination of direct and indirect ownership interests, that equals five percent or more in the provider or person applying to enroll as a provider;

o owns an interest of five percent or more in a mortgage, deed of trust, promissory note, or other obligation secured by the provider or person applying to enroll as a provider if that interest equals at least five percent of the value of the property or other assets of the provider or person applying to enroll as a provider;

o is an officer or director of the provider or person applying to enroll as a provider if that provider or applicant is organized as a corporation; or

o is a partner in the provider or person applying to enroll as a provider if that provider or applicant is organized as a partnership; and

· a managing employee of the provider or person applying to enroll as a provider.

The TCEQ

While both the introduced and the substitute revise the TCEQ's entitlement to obtain certain criminal history record information that relates to certain persons by including additional persons among those persons, the versions differ in the following ways:

· while both versions include a person who is an applicant for certain licenses or registrations, the versions differ with respect to those licenses and registrations, as follows:

o while both versions include a water supply system operator license, the introduced specified that such a license is required under Water Code provisions relating to required licenses or registrations and that "water supply system operator" is defined by reference to its meaning in Health and Safety Code provisions relating to minimum standards of sanitation and health protection measures, whereas the substitute does not;

o while both versions include a backflow prevention assembly tester license, the introduced specified that such a license is to repair or test the installation or operation of backflow prevention assemblies under Water Code provisions relating to required licenses or registrations, whereas the substitute does not;

o while both versions include a customer service inspector license, the introduced specified that such a license is to inspect homes and businesses to identify potential or actual cross-connections or other contaminant hazards in public water systems under Water Code provisions relating to required licenses or registrations, whereas the substitute does not;

o while both versions include a municipal solid waste facility supervisor license, the introduced specified that such a license is to supervise the operation or maintenance of solid waste facilities under Water Code provisions relating to required licenses or registrations, whereas the substitute does not;

o whereas the introduced included an on-site sewage facility apprentice or installer license to construct, install, alter, or extend an on-site sewage disposal system, the substitute includes an on-site sewage facility installer license or apprentice registration;

o whereas the introduced included an on-site sewage facility maintenance provider or technician license to service, maintain, or repair an on-site sewage disposal system under Water Code provisions relating to required licenses or registrations, the substitute includes an on-site sewage facility maintenance provider license or maintenance technician registration;

o while both versions include an on-site sewage facility designated representative license, the introduced specified that such a license is to work for an authorized agent to review permit applications, site evaluations, or planning materials or inspect on-site sewage disposal systems under Water Code provisions relating to required licenses or registrations, whereas the substitute does not; and

o while both versions include an on-site sewage facility site evaluator license, the introduced specified that such a license is to conduct preconstruction site evaluations, including visiting a site and performing a soil analysis, a site survey, or other activities necessary to determine the suitability of a site for an on-site sewage disposal system under Water Code provisions relating to required licenses or registrations, whereas the substitute does not;

· whereas the introduced included a person who inspects an irrigation system for a municipality or water district, the substitute includes a person who is an applicant for a landscape irrigator or irrigation technician license;

· whereas the introduced included a person who sells, designs, installs, maintains, alters, repairs, or services irrigation systems, provides consulting services relating to an irrigation system, or connects an irrigation system to a water supply under Water Code provisions relating to required licenses or registrations, the substitute includes a person who is an applicant for an irrigation inspector license required by applicable Occupations Code provisions;

· whereas the introduced included a person who installs, exchanges, services, and repairs residential, commercial, or industrial water treatment equipment and appliances, the substitute includes a person who is an applicant for a water treatment specialist certificate;

· whereas the introduced included a person who supervises a corrective action plan for a leaking petroleum storage tank, the substitute includes a person who is an applicant for a leaking petroleum storage tank corrective action project manager or specialist license;

· whereas the introduced included a person who supervises the installation, repair, or removal of an underground storage tank under Water Code provisions relating to required licenses or registrations, the substitute includes a person who is an applicant for an underground storage tank on-site supervisor license;

· whereas the introduced included a person who performs process control activities at a sewage treatment facility, the substitute includes a person who is an applicant for a wastewater treatment plan operator license; and

· whereas the introduced included a person who supervises the maintenance of a sewage collection system, the substitute includes a person who is an applicant for a wastewater collection system operator license.

The introduced and the substitute both make additional revisions to those currently included certain persons but differ in the following ways:

· whereas the substitute replaces a person who is the holder of a license, permit, or registration under a provision listed in current state law with a person who is the holder of a license, registration, or certificate under a provision listed in the substitute's provisions, the introduced removed a person who is the holder of a permit or registration under a provision listed in current state law; and

· whereas the substitute replaces a person who requests a determination of eligibility for a license, permit, or registration from TCEQ under a provision listed in current state law with a person who requests a determination of eligibility for a license, registration, or certificate under a provision listed in the substitute's provisions, the introduced removed a person who requests such a determination of eligibility for a permit or registration from TCEQ under a provision listed in current state law.

Manufactured Housing Division of TDHCA

While both the introduced and the substitute revise the entitlement of the manufactured housing division of TDHCA to obtain certain criminal history record information that relates to certain persons by including an applicant or holder of a retailer's license, the substitute specifies that the retailer's license is required by Occupations Code provisions relating to the prohibition against a person repairing, rebuilding, or otherwise altering a salvaged manufactured home unless the person holds a retailer's license.

State Fire Marshal

Both the introduced and the substitute revise the entitlement of the state fire marshal to obtain certain criminal history record information that relates to certain persons by including additional persons among those persons. However, the versions differ in the following ways:

· both versions include a person who is an applicant for or holder of a fire extinguisher license or apprentice permit under Insurance Code provisions relating to fire extinguisher service and installation, but the introduced specified that such a license or permit includes a fire extinguisher license Type PL, Type A, Type B, and Type K, fire extinguisher apprentice permit, which the substitute does not do;

· whereas the introduced included a person who is an applicant for or holder of a fire alarm planning superintendent or fire alarm technician license under Insurance Code provisions relating to fire detection and alarm device installation, including fire alarm technician license, fire alarm monitoring technician license, fire alarm instructor, residential fire alarm superintendent single station license, residential fire alarm superintendent license, fire alarm planning superintendent license, residential fire alarm technician license, and training school approval, the substitute specifically includes only a person who is an applicant for or holder of a fire alarm technician or residential fire alarm technician license, a residential fire alarm superintendent license, a fire alarm planning superintendent license, or a fire alarm training school or instructor approval required by applicable Insurance Code provisions;

· whereas the introduced included a person who is an applicant for or holder of a fire protection sprinkler system contractor or fire sprinkler responsible managing employee, including Responsible Managing Employee-General, Responsible Managing Employee-Dwelling, Responsible Managing Employee-Underground, and Responsible Managing Employee-General Inspector, the substitute includes a person who is an applicant for or holder of a fire protection sprinkler system contractor registration certificate or a responsible managing employee license required by Insurance Code provisions relating to fire protection sprinkler system service and installation; and

· whereas the introduced included the applicant for or holder of a license or registration under Occupations Code provisions governing license requirements for purposes of the regulation of fireworks and fireworks displays, including pyrotechnic operator's license, pyrotechnic special effects operator's license, and flame effects operator's license, the substitute includes a person who is an applicant for or holder of a license required by Occupations Code provisions governing license requirements and types of licenses for purposes of the regulation of fireworks and fireworks displays.

The TMB

The substitute includes provisions absent from the introduced revising the entitlement of the TMB to obtain certain criminal history record information that relates to certain persons by including among those persons an applicant for employment at or current employee of the TMB and establishing that the TMB is not prohibited from disclosing applicable criminal history record information in a hearing conducted by the State Office of Administrative Hearings.

TxDMV

The substitute includes provisions absent from the introduced revising the entitlement of TxDMV to obtain certain criminal history record information that relates to certain persons by replacing the inclusion among those certain persons of a person who is an officer, director, member, manager, principal, partner, trustee, or other person acting in a representative capacity for an applicant, general distinguishing number holder, or license holder and whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code provisions relating to dealer's and manufacturer's vehicle license plates or under Occupations Code provisions relating to the sale or lease of motor vehicles or to salvage vehicle dealers with an inclusion among those certain persons of a person who is:

· an owner, officer, director, member, manager, principal, partner, trustee, or trust beneficiary of an applicant, general distinguishing number holder, or license holder; or

· an employee designated as an authorized representative an applicant, general distinguishing number holder, or license holder and whose act or omission in the course or scope of the person's representation would be cause for denying, revoking, or suspending a general distinguishing number or license issued under those Transportation Code or Occupations Code provisions.

The TSBP

The introduced revised the entitlement of the TSBP to obtain certain criminal history record information through the FBI and from DPS or any other criminal justice agency in Texas that relates to certain persons by specifying that such a person is an otherwise eligible person who in addition to the information required for issuance of a license, certificate, registration or permit by the TSBP, or for employment with the TSBP, must submit to the TSBP a complete set of fingerprints, whereas the substitute does not.

While both the introduced and the substitute require certain applicants for renewal of an applicable license described by provisions revised by the bill who have not yet submitted a complete set of fingerprints as part of a previous application for the license to submit to the TSBP a complete set of fingerprints with the person's completed application for renewal and establish that failure to submit a complete set of fingerprints under that requirement may result in a suspension or refusal to renew the applicable license by the TSBP, the versions differ in the following ways:

· the introduced specified that the requirement is in addition to the requirement to submit information required by the requirements for renewal of a license to practice pharmacy, whereas the substitute does not; and

· the substitute makes these provisions applicable also with respect to certain registrations described by provisions revised by the bill, whereas the introduced did not.

The substitute includes a provision absent from the introduced entitling the TSBP to obtain a complete set of fingerprints from a person described by those provisions.

Certain Hospitals and Hospital Districts

The substitute includes a provision absent from the introduced removing the authorization for an applicable public or nonprofit hospital or hospital district to require the social security number of a person whose related criminal history record information maintained by DPS the applicable hospital or hospital district is entitled to obtain from DPS under applicable state law for purposes of the method adopted by the applicable hospital or hospital district to obtain that information.

Licensed Professional Counselors

Both the introduced and the substitute revise the authorization for BHEC by rule to provide for the issuance of a temporary license under the Licensed Professional Counselor Act by changing the type of license that BHEC may issue from a temporary license to an associate license. However, the introduced also replaced that authorization to provide by rule for the issuance of an applicable license with a requirement to provide for the issuance of an applicable license, whereas the substitute does not.

Manufactured Housing

The substitute omits the provision from the introduced that revised the definitions of certain terms for purposes of the Texas Manufactured Housing Standards Act by doing the following:

· with respect to the provision defining "license holder" and "licensee" as a person who holds a license issued by TDHCA operating through its manufactured housing division as a manufacturer, retailer, broker, salesperson, or installer, specifying that the person is listed on a Manufactured Housing Division License application;

· removing from the definition of "person" a group, however organized, other than a partnership, company, corporation, or association;

· with respect to the provision defining "related person" as a person who directly participates in management or policy decisions and is designated by an entity and satisfies the requirements of Occupations Code provisions relating to license qualifications and continuing education on behalf of the entity, if the entity is licensed or seeking licensure under the Texas Manufactured Housing Standards Act, replacing a reference to "a person" with a reference to "an individual"; and

· removing from the definition of "salesperson" a person who sells or offers to sell manufactured housing to a consumer as an agent of a retailer or broker.

Procedural Provision

The substitute includes a provision absent from the introduced establishing that the bill, to the extent of any conflict, prevails over another Act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes.