89R18105 JCG-F

By: Bumgarner H.B. No. 3945

Substitute the following for H.B. No. 3945:

By: Phelan C.S.H.B. No. 3945

A BILL TO BE ENTITLED

AN ACT

relating to the licensing and regulation of massage therapy and other programs administered by the Texas Department of Licensing and Regulation; creating a criminal offense; providing a civil penalty.

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

SECTION 1. Section 51.001(6), Occupations Code, is amended to read as follows:

(6) "Sanction" means an action by the commission or executive director against a license holder or another person, including the denial, suspension, or revocation of a license, the reprimand of a license holder, or the placement of a license holder on probation.

SECTION 2. Section 51.3511(c), Occupations Code, is amended to read as follows:

(c) If an emergency order is issued under this section without a hearing, the executive director shall set the time and place for a hearing conducted by the State Office of Administrative Hearings to affirm, modify, or set aside the emergency order not later than the 17th [10th] day after the date the order was issued. The order shall be affirmed to the extent that reasonable cause existed to issue the order.

SECTION 3. Section 455.001, Occupations Code, is amended by adding Subdivision (14) to read as follows:

(14) "Sanction" has the meaning assigned by Section 51.001.

SECTION 4. Section 455.152, Occupations Code, as amended by Chapters 13 (S.B. 483) and 440 (H.B. 2016), Acts of the 88th Legislature, Regular Session, 2023, is reenacted and amended to read as follows:

Sec. 455.152. INELIGIBILITY FOR LICENSE. (a) A person is not eligible for a license as a massage establishment, massage school, massage therapist, or massage therapy instructor if the person [is an individual and] has been convicted of, entered a plea of nolo contendere or guilty to, or received deferred adjudication for:

(1) an offense under Chapter 20A, Penal Code [Section 22.011 or 22.021 Penal Code], or Section 22.011, 22.021, 43.021, 43.03, 43.031, 43.04, 43.041, or 43.05, Penal Code; or

(2) an offense under federal law or the laws of another state containing elements that are substantially similar to the elements of an offense described by Subdivision (1).

(b) An entity is not eligible for a license as a massage establishment or massage school if:

(1) an individual described by Section 455.1525(e) with respect to the entity has been convicted of, entered a plea of nolo contendere or guilty to, or received deferred adjudication for an offense described by Subsection (a)(1) or (2);

(2) the entity or an owner or operator of the entity is subject to an emergency order under Section 51.3511 for a ground described by Section 455.252;

(3) a license issued under this chapter to the entity or an owner or operator of the entity has been revoked under Section 455.251(c)(1);

(4) the entity was a tenant of commercial rental property and the landlord prevailed in a forcible detainer suit filed against the entity based on termination of the entity's right of possession under Section 93.013, Property Code; or

(5) the entity is applying for a license with respect to a location that is subject to an emergency order issued under Section 51.3511 for a ground described by Section 455.252.

SECTION 5. Section 455.153, Occupations Code, is amended to read as follows:

Sec. 455.153. APPLICATION FOR LICENSE. (a) An applicant for a license under this chapter must:

(1) submit an application in the manner and on a form prescribed by the executive director;

(2) pass any required examination; and

(3) include with the application the application fee set by the commission by rule.

(b) For purposes of Subsection (a)(1), an applicant for a license as a massage establishment or massage school shall include with the application:

(1) a list of each individual for which the applicant is required to submit fingerprints under Section 455.1525(e); and

(2) an explanation of the relationship between each individual described by Subdivision (1) and the applicant.

SECTION 6. Section 455.202, Occupations Code, is amended by adding Subsection (c-1) to read as follows:

(c-1) A massage establishment shall report to the department any allegation made to the massage establishment of sexual contact between a massage therapist employed by or contracted by the massage establishment and a client not later than 24 hours after receiving notice of the allegation.

SECTION 7. Section 455.206, Occupations Code, is amended to read as follows:

Sec. 455.206. NEW LICENSE REQUIRED FOR [ESTABLISHMENT] CHANGE OF LOCATION OF ESTABLISHMENT OR SCHOOL [PROHIBITED]. A massage establishment or massage school may not change the location of the establishment or school without obtaining a new massage establishment or massage school license under this chapter, as appropriate.

SECTION 8. Subchapter E, Chapter 455, Occupations Code, is amended by adding Section 455.208 to read as follows:

Sec. 455.208. TEMPORARY PROHIBITION ON ISSUANCE OF CERTAIN ESTABLISHMENT OR SCHOOL LICENSES. (a) If the executive director issues an emergency order against a massage establishment or massage school for a ground described by Section 455.252, the executive director in the order may prohibit for a period not to exceed one year the issuance of a massage establishment or massage school license with respect to the location where the establishment or school previously operated.

(b) If the license of a massage establishment or massage school is revoked under Section 455.251, the commission or executive director in the order revoking the license may prohibit for a period not to exceed five years the issuance of a massage establishment or massage school license with respect to the location where the establishment or school previously operated.

(c) The department shall provide to the property owner of the applicable location a copy of any order issued under Subsection (a) or (b).

(d) Not later than the 30th day after the date on which the copy of an order is provided under Subsection (c), the property owner may submit a request to the department to rescind the prohibition described by Subsection (a) or (b). The request must include documentation sufficient to demonstrate that the owner has undertaken or implemented procedures and controls to prevent the commission of an offense under Chapter 20A or Section 34.02, 43.02, 43.021, 43.03, 43.04, 43.05, or 71.02, Penal Code, on the property subject to the prohibition.

(e) On receipt of a request under Subsection (d), the commission or executive director:

(1) may approve the request to rescind the prohibition if:

(A) the ownership of the property subject to the prohibition changed less than two years before the date of the request under Subsection (d); and

(B) the current owner of the property is not a person against whom:

(i) a sanction has been imposed for a violation of this chapter; or

(ii) injunctive relief has been obtained or a civil penalty has been imposed under Section 455.351; or

(2) shall approve the request to rescind the prohibition as soon as practicable after the date on which the request is received if:

(A) the ownership of the property subject to the prohibition changed two or more years before the date of the request under Subsection (d);

(B) in the two-year period described by Paragraph (A), an arrest has not occurred for, a citation in lieu of arrest has not been issued for, and a conviction has not resulted from an offense listed in Subsection (d) committed on the property subject to the prohibition; and

(C) the current owner of the property is not a person against whom:

(i) a sanction has been imposed for a violation of this chapter; or

(ii) injunctive relief has been obtained or a civil penalty has been imposed under Section 455.351.

SECTION 9. Section 455.251(a), Occupations Code, is amended to read as follows:

(a) The commission or executive director may refuse to issue a license to a person, suspend, revoke, or refuse to renew the license of a person, or impose an administrative penalty under Subchapter F, Chapter 51, on a person licensed under this chapter if the person:

(1) obtains or attempts to obtain a license by fraud, misrepresentation, or concealment of material facts;

(2) sells, barters, or offers to sell or barter a license;

(3) violates a rule adopted by the commission under this chapter;

(4) engages in unprofessional conduct as defined by commission rule that endangers or is likely to endanger the health, welfare, or safety of the public;

(5) violates an order or ordinance adopted by a political subdivision under Chapter 243, Local Government Code; [or]

(6) violates this chapter; or

(7) engages in conduct constituting an offense under Chapter 20A, Penal Code.

SECTION 10. Section 455.252, Occupations Code, is amended to read as follows:

Sec. 455.252. EMERGENCY ORDER. (a) The executive director may issue an emergency order under Section 51.3511 halting the operation of or suspending the license of a massage establishment or massage school for a period not to exceed one year if:

(1) a law enforcement agency gives notice to the department, or the department otherwise learns, that the law enforcement agency is investigating the massage establishment or massage school for an offense under Chapter 20A, Penal Code; or

(2) the department has reasonable cause to believe that an offense under Chapter 20A, Penal Code, is being committed at the massage establishment or massage school.

(b) A hearing on an emergency order issued under Section 51.3511 for a ground described by this section is a contested case and subject to Section 2001.058(f), Government Code, in the same manner as if a rule were adopted as required by that subsection.

(c) The department shall provide to the property owner of the massage establishment's or massage school's location a copy of any order issued under Section 51.3511 for a ground described by this section.

SECTION 11. Subchapter F, Chapter 455, Occupations Code, is amended by adding Section 455.253 to read as follows:

Sec. 455.253. INELIGIBILITY PERIOD ON LICENSE REVOCATION. On the revocation of a license under Section 455.251, the commission or executive director in the order revoking the license may impose a period not to exceed five years for which the former license holder is ineligible for a license under this chapter.

SECTION 12. Sections 455.351(a) and (b), Occupations Code, are amended to read as follows:

(a) The attorney general, a district or county attorney, a municipal attorney, or the department may institute an action for injunctive relief to restrain a violation by a person who:

(1) appears to be in violation of or threatening to violate this chapter, [or] a rule adopted under this chapter, or an emergency order issued for a ground described by Section 455.252; or

(2) is the owner or operator of an establishment that offers massage therapy or other massage services regulated by this chapter and is not licensed under this chapter.

(b) The attorney general, a district or county attorney, a municipal attorney, or the department may institute an action to collect a civil penalty from a person who appears to be in violation of this chapter, [or] a rule adopted under this chapter, or an emergency order issued for a ground described by Section 455.252. The amount of a civil penalty must [shall] be not less than $1,000 or more than:

(1) $10,000 for each violation, other than a violation described by Subdivision (2); or

(2) $20,000 for each violation of an emergency order issued for a ground described by Section 455.252.

SECTION 13. Subchapter H, Chapter 455, Occupations Code, is amended by adding Section 455.3525 to read as follows:

Sec. 455.3525. CRIMINAL PENALTY: VIOLATING CERTAIN EMERGENCY ORDERS. (a) A person commits an offense if the person knowingly violates an emergency order issued under Section 51.3511 for a ground described by Section 455.252.

(b) An offense under this section is a state jail felony.

SECTION 14. Section 455.353, Occupations Code, is amended to read as follows:

Sec. 455.353. ENFORCEMENT BY PEACE OFFICERS. A peace officer of this state, including a peace officer employed by a political subdivision of the state, may enforce:

(1) this chapter; or

(2) an emergency order issued for a ground described by Section 455.252.

SECTION 15. Section 455.005(e), Occupations Code, is repealed.

SECTION 16. Sections 51.3511(c) and 455.252, Occupations Code, as amended by this Act, apply only to an emergency order issued on or after the effective date of this Act. An emergency order issued before the effective date of this Act is governed by the law in effect on the date the order was issued, and the former law is continued in effect for that purpose.

SECTION 17. Sections 455.153 and 455.206, Occupations Code, as amended by this Act, apply only to an application for a license under Chapter 455, Occupations Code, submitted on or after the effective date of this Act. An application for a license under that chapter submitted before the effective date of this Act is governed by the law in effect on the date the application was submitted, and the former law is continued in effect for that purpose.

SECTION 18. Section 455.202(c-1), Occupations Code, as added by this Act, applies only to an allegation made to a massage establishment as described by that section on or after the effective date of this Act.

SECTION 19. Section 455.351, Occupations Code, as amended by this Act, applies only to conduct that occurs on or after the effective date of this Act. Conduct that occurs before the effective date of this Act is governed by the law in effect on the date the conduct occurred, and the former law is continued in effect for that purpose.

SECTION 20. To the extent of any conflict, this Act prevails over another Act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes.

SECTION 21. This Act takes effect September 1, 2025.