S.B. No. 2065
AN ACT
relating to the licensing and regulation of certain occupations and
activities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. VEHICLE PROTECTION PRODUCTS
SECTION 1.001. Section 17.45, Business & Commerce Code, is
amended by adding Subdivisions (14), (15), and (16) to read as
follows:
(14) "Vehicle protection product":
(A) means a product or system, including a
written warranty:
(i) that is:
(a) installed on or applied to a
vehicle; and
(b) designed to prevent loss of or
damage to a vehicle from a specific cause; and
(ii) under which, after installation or
application of the product or system described by Subparagraph (i),
if loss or damage results from the failure of the product or system
to perform as represented in the warranty, the warrantor, to the
extent agreed on as part of the warranty, is required to pay
expenses to the person in this state who purchases or otherwise
possesses the product or system for the loss of or damage to the
vehicle; and
(B) may also include identity recovery, as
defined by Section 1304.003, Occupations Code, if the product or
system described by Paragraph (A) is financed under Chapter 348 or
353, Finance Code.
(15) "Warrantor" means a person named under the terms
of a vehicle protection product warranty as the contractual obligor
to a person in this state who purchases or otherwise possesses a
vehicle protection product.
(16) "Loss of or damage to the vehicle," for purposes
of Subdivision (14)(A)(ii), may also include unreimbursed
incidental expenses that may be incurred by the warrantor,
including expenses for a replacement vehicle, temporary vehicle
rental expenses, and registration expenses for replacement
vehicles.
SECTION 1.002. Section 17.46(b), Business & Commerce Code,
as amended by Chapters 1023 (H.B. 1265) and 1080 (H.B. 2573), Acts
of the 84th Legislature, Regular Session, 2015, is reenacted and
amended to read as follows:
(b) Except as provided in Subsection (d) of this section,
the term "false, misleading, or deceptive acts or practices"
includes, but is not limited to, the following acts:
(1) passing off goods or services as those of another;
(2) causing confusion or misunderstanding as to the
source, sponsorship, approval, or certification of goods or
services;
(3) causing confusion or misunderstanding as to
affiliation, connection, or association with, or certification by,
another;
(4) using deceptive representations or designations
of geographic origin in connection with goods or services;
(5) representing that goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, or quantities which they do not have or that a person has
a sponsorship, approval, status, affiliation, or connection which
the person does not;
(6) representing that goods are original or new if
they are deteriorated, reconditioned, reclaimed, used, or
secondhand;
(7) representing that goods or services are of a
particular standard, quality, or grade, or that goods are of a
particular style or model, if they are of another;
(8) disparaging the goods, services, or business of
another by false or misleading representation of facts;
(9) advertising goods or services with intent not to
sell them as advertised;
(10) advertising goods or services with intent not to
supply a reasonable expectable public demand, unless the
advertisements disclosed a limitation of quantity;
(11) making false or misleading statements of fact
concerning the reasons for, existence of, or amount of price
reductions;
(12) representing that an agreement confers or
involves rights, remedies, or obligations which it does not have or
involve, or which are prohibited by law;
(13) knowingly making false or misleading statements
of fact concerning the need for parts, replacement, or repair
service;
(14) misrepresenting the authority of a salesman,
representative or agent to negotiate the final terms of a consumer
transaction;
(15) basing a charge for the repair of any item in
whole or in part on a guaranty or warranty instead of on the value of
the actual repairs made or work to be performed on the item without
stating separately the charges for the work and the charge for the
warranty or guaranty, if any;
(16) disconnecting, turning back, or resetting the
odometer of any motor vehicle so as to reduce the number of miles
indicated on the odometer gauge;
(17) advertising of any sale by fraudulently
representing that a person is going out of business;
(18) advertising, selling, or distributing a card
which purports to be a prescription drug identification card issued
under Section 4151.152, Insurance Code, in accordance with rules
adopted by the commissioner of insurance, which offers a discount
on the purchase of health care goods or services from a third party
provider, and which is not evidence of insurance coverage, unless:
(A) the discount is authorized under an agreement
between the seller of the card and the provider of those goods and
services or the discount or card is offered to members of the
seller;
(B) the seller does not represent that the card
provides insurance coverage of any kind; and
(C) the discount is not false, misleading, or
deceptive;
(19) using or employing a chain referral sales plan in
connection with the sale or offer to sell of goods, merchandise, or
anything of value, which uses the sales technique, plan,
arrangement, or agreement in which the buyer or prospective buyer
is offered the opportunity to purchase merchandise or goods and in
connection with the purchase receives the seller's promise or
representation that the buyer shall have the right to receive
compensation or consideration in any form for furnishing to the
seller the names of other prospective buyers if receipt of the
compensation or consideration is contingent upon the occurrence of
an event subsequent to the time the buyer purchases the merchandise
or goods;
(20) representing that a guaranty or warranty confers
or involves rights or remedies which it does not have or involve,
provided, however, that nothing in this subchapter shall be
construed to expand the implied warranty of merchantability as
defined in Sections 2.314 through 2.318 and Sections 2A.212 through
2A.216 to involve obligations in excess of those which are
appropriate to the goods;
(21) promoting a pyramid promotional scheme, as
defined by Section 17.461;
(22) representing that work or services have been
performed on, or parts replaced in, goods when the work or services
were not performed or the parts replaced;
(23) filing suit founded upon a written contractual
obligation of and signed by the defendant to pay money arising out
of or based on a consumer transaction for goods, services, loans, or
extensions of credit intended primarily for personal, family,
household, or agricultural use in any county other than in the
county in which the defendant resides at the time of the
commencement of the action or in the county in which the defendant
in fact signed the contract; provided, however, that a violation of
this subsection shall not occur where it is shown by the person
filing such suit that the person neither knew or had reason to know
that the county in which such suit was filed was neither the county
in which the defendant resides at the commencement of the suit nor
the county in which the defendant in fact signed the contract;
(24) failing to disclose information concerning goods
or services which was known at the time of the transaction if such
failure to disclose such information was intended to induce the
consumer into a transaction into which the consumer would not have
entered had the information been disclosed;
(25) using the term "corporation," "incorporated," or
an abbreviation of either of those terms in the name of a business
entity that is not incorporated under the laws of this state or
another jurisdiction;
(26) selling, offering to sell, or illegally promoting
an annuity contract under Chapter 22, Acts of the 57th Legislature,
3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
Statutes), with the intent that the annuity contract will be the
subject of a salary reduction agreement, as defined by that Act, if
the annuity contract is not an eligible qualified investment under
that Act or is not registered with the Teacher Retirement System of
Texas as required by Section 8A of that Act;
(27) taking advantage of a disaster declared by the
governor under Chapter 418, Government Code, by:
(A) selling or leasing fuel, food, medicine, or
another necessity at an exorbitant or excessive price; or
(B) demanding an exorbitant or excessive price in
connection with the sale or lease of fuel, food, medicine, or
another necessity;
(28) using the translation into a foreign language of
a title or other word, including "attorney," "lawyer," "licensed,"
"notary," and "notary public," in any written or electronic
material, including an advertisement, a business card, a
letterhead, stationery, a website, or an online video, in reference
to a person who is not an attorney in order to imply that the person
is authorized to practice law in the United States;
(29) [(28)] delivering or distributing a solicitation
in connection with a good or service that:
(A) represents that the solicitation is sent on
behalf of a governmental entity when it is not; or
(B) resembles a governmental notice or form that
represents or implies that a criminal penalty may be imposed if the
recipient does not remit payment for the good or service;
(30) [(29)] delivering or distributing a solicitation
in connection with a good or service that resembles a check or other
negotiable instrument or invoice, unless the portion of the
solicitation that resembles a check or other negotiable instrument
or invoice includes the following notice, clearly and conspicuously
printed in at least 18-point type:
"SPECIMEN-NON-NEGOTIABLE";
(31) [(30)] in the production, sale, distribution, or
promotion of a synthetic substance that produces and is intended to
produce an effect when consumed or ingested similar to, or in excess
of, the effect of a controlled substance or controlled substance
analogue, as those terms are defined by Section 481.002, Health and
Safety Code:
(A) making a deceptive representation or
designation about the synthetic substance; or
(B) causing confusion or misunderstanding as to
the effects the synthetic substance causes when consumed or
ingested; [or]
(32) [(31)] a licensed public insurance adjuster
directly or indirectly soliciting employment, as defined by Section
38.01, Penal Code, for an attorney, or a licensed public insurance
adjuster entering into a contract with an insured for the primary
purpose of referring the insured to an attorney without the intent
to actually perform the services customarily provided by a licensed
public insurance adjuster, provided that this subdivision may not
be construed to prohibit a licensed public insurance adjuster from
recommending a particular attorney to an insured; or
(33) a warrantor of a vehicle protection product
warranty using, in connection with the product, a name that
includes "casualty," "surety," "insurance," "mutual," or any other
word descriptive of an insurance business, including property or
casualty insurance, or a surety business.
SECTION 1.003. Subchapter A, Chapter 348, Finance Code, is
amended by adding Section 348.014 to read as follows:
Sec. 348.014. TRANSACTION CONDITIONED ON PURCHASE OF
VEHICLE PROTECTION PRODUCT PROHIBITED. (a) In this section,
"vehicle protection product" has the meaning assigned by Section
17.45, Business & Commerce Code.
(b) A retail seller may not require as a condition of a
retail installment transaction or the cash sale of a motor vehicle
that the buyer purchase a vehicle protection product that is not
installed on the vehicle at the time of the transaction.
(c) A violation of this section is a false, misleading, or
deceptive act or practice within the meaning of Section 17.46,
Business & Commerce Code, and is actionable in a public or private
suit brought under Subchapter E, Chapter 17, Business & Commerce
Code.
SECTION 1.004. Subchapter A, Chapter 353, Finance Code, is
amended by adding Section 353.017 to read as follows:
Sec. 353.017. TRANSACTION CONDITIONED ON PURCHASE OF
VEHICLE PROTECTION PRODUCT PROHIBITED. (a) In this section,
"vehicle protection product" has the meaning assigned by Section
17.45, Business & Commerce Code.
(b) A retail seller may not require as a condition of a
retail installment transaction or the cash sale of a commercial
vehicle that the buyer purchase a vehicle protection product that
is not installed on the vehicle at the time of the transaction.
(c) A violation of this section is a false, misleading, or
deceptive act or practice within the meaning of Section 17.46,
Business & Commerce Code, and is actionable in a public or private
suit brought under Subchapter E, Chapter 17, Business & Commerce
Code.
SECTION 1.005. Chapter 2306, Occupations Code, is repealed.
SECTION 1.006. (a) On the effective date of this Act:
(1) an action, including a disciplinary or
administrative proceeding, pending under Chapter 51 or 2306,
Occupations Code, on the effective date of this Act related to an
alleged violation of Chapter 2306, Occupations Code, as that
chapter existed immediately before the effective date of this Act,
is dismissed;
(2) the Vehicle Protection Product Warrantor Advisory
Board is abolished; and
(3) a registration issued under former Chapter 2306,
Occupations Code, expires.
(b) As soon as practicable after the effective date of this
Act, the Texas Commission of Licensing and Regulation shall repeal
all rules regarding the regulation of vehicle protection product
warrantors adopted under former Chapter 2306, Occupations Code.
(c) An administrative penalty assessed by the Texas
Commission of Licensing and Regulation or the executive director of
the Texas Department of Licensing and Regulation related to a
violation of Chapter 2306, Occupations Code, as that chapter
existed immediately before the effective date of this Act, may be
collected as provided by Chapter 51, Occupations Code.
(d) The repeal by this Act of Chapter 2306, Occupations
Code, does not affect the validity or terms of a vehicle protection
product warranty that was issued or renewed before the effective
date of this Act.
SECTION 1.007. Section 17.46(b), Business & Commerce Code,
as amended by this Act, applies only to a cause of action that
accrues on or after the effective date of this Act. A cause of
action that accrued before the effective date of this Act is
governed by the law in effect immediately before the effective date
of this Act, and that law is continued in effect for that purpose.
SECTION 1.008. Sections 348.014 and 353.017, Finance Code,
as added by this Act, apply only to a transaction for the purchase
of a motor vehicle or commercial vehicle, as applicable, that
occurs on or after the effective date of this Act. A transaction
for the purchase of a motor vehicle or commercial vehicle that
occurs before the effective date of this Act is governed by the law
in effect on the date the transaction occurred, and the former law
is continued in effect for that purpose.
ARTICLE 2. NOTARIES PUBLIC
SECTION 2.001. Section 17.46(b), Business & Commerce Code,
as amended by Chapters 1023 (H.B. 1265) and 1080 (H.B. 2573), Acts
of the 84th Legislature, Regular Session, 2015, is reenacted and
amended to read as follows:
(b) Except as provided in Subsection (d) of this section,
the term "false, misleading, or deceptive acts or practices"
includes, but is not limited to, the following acts:
(1) passing off goods or services as those of another;
(2) causing confusion or misunderstanding as to the
source, sponsorship, approval, or certification of goods or
services;
(3) causing confusion or misunderstanding as to
affiliation, connection, or association with, or certification by,
another;
(4) using deceptive representations or designations
of geographic origin in connection with goods or services;
(5) representing that goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, or quantities which they do not have or that a person has
a sponsorship, approval, status, affiliation, or connection which
the person does not;
(6) representing that goods are original or new if
they are deteriorated, reconditioned, reclaimed, used, or
secondhand;
(7) representing that goods or services are of a
particular standard, quality, or grade, or that goods are of a
particular style or model, if they are of another;
(8) disparaging the goods, services, or business of
another by false or misleading representation of facts;
(9) advertising goods or services with intent not to
sell them as advertised;
(10) advertising goods or services with intent not to
supply a reasonable expectable public demand, unless the
advertisements disclosed a limitation of quantity;
(11) making false or misleading statements of fact
concerning the reasons for, existence of, or amount of price
reductions;
(12) representing that an agreement confers or
involves rights, remedies, or obligations which it does not have or
involve, or which are prohibited by law;
(13) knowingly making false or misleading statements
of fact concerning the need for parts, replacement, or repair
service;
(14) misrepresenting the authority of a salesman,
representative or agent to negotiate the final terms of a consumer
transaction;
(15) basing a charge for the repair of any item in
whole or in part on a guaranty or warranty instead of on the value of
the actual repairs made or work to be performed on the item without
stating separately the charges for the work and the charge for the
warranty or guaranty, if any;
(16) disconnecting, turning back, or resetting the
odometer of any motor vehicle so as to reduce the number of miles
indicated on the odometer gauge;
(17) advertising of any sale by fraudulently
representing that a person is going out of business;
(18) advertising, selling, or distributing a card
which purports to be a prescription drug identification card issued
under Section 4151.152, Insurance Code, in accordance with rules
adopted by the commissioner of insurance, which offers a discount
on the purchase of health care goods or services from a third party
provider, and which is not evidence of insurance coverage, unless:
(A) the discount is authorized under an agreement
between the seller of the card and the provider of those goods and
services or the discount or card is offered to members of the
seller;
(B) the seller does not represent that the card
provides insurance coverage of any kind; and
(C) the discount is not false, misleading, or
deceptive;
(19) using or employing a chain referral sales plan in
connection with the sale or offer to sell of goods, merchandise, or
anything of value, which uses the sales technique, plan,
arrangement, or agreement in which the buyer or prospective buyer
is offered the opportunity to purchase merchandise or goods and in
connection with the purchase receives the seller's promise or
representation that the buyer shall have the right to receive
compensation or consideration in any form for furnishing to the
seller the names of other prospective buyers if receipt of the
compensation or consideration is contingent upon the occurrence of
an event subsequent to the time the buyer purchases the merchandise
or goods;
(20) representing that a guaranty or warranty confers
or involves rights or remedies which it does not have or involve,
provided, however, that nothing in this subchapter shall be
construed to expand the implied warranty of merchantability as
defined in Sections 2.314 through 2.318 and Sections 2A.212 through
2A.216 to involve obligations in excess of those which are
appropriate to the goods;
(21) promoting a pyramid promotional scheme, as
defined by Section 17.461;
(22) representing that work or services have been
performed on, or parts replaced in, goods when the work or services
were not performed or the parts replaced;
(23) filing suit founded upon a written contractual
obligation of and signed by the defendant to pay money arising out
of or based on a consumer transaction for goods, services, loans, or
extensions of credit intended primarily for personal, family,
household, or agricultural use in any county other than in the
county in which the defendant resides at the time of the
commencement of the action or in the county in which the defendant
in fact signed the contract; provided, however, that a violation of
this subsection shall not occur where it is shown by the person
filing such suit that the person neither knew or had reason to know
that the county in which such suit was filed was neither the county
in which the defendant resides at the commencement of the suit nor
the county in which the defendant in fact signed the contract;
(24) failing to disclose information concerning goods
or services which was known at the time of the transaction if such
failure to disclose such information was intended to induce the
consumer into a transaction into which the consumer would not have
entered had the information been disclosed;
(25) using the term "corporation," "incorporated," or
an abbreviation of either of those terms in the name of a business
entity that is not incorporated under the laws of this state or
another jurisdiction;
(26) selling, offering to sell, or illegally promoting
an annuity contract under Chapter 22, Acts of the 57th Legislature,
3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
Statutes), with the intent that the annuity contract will be the
subject of a salary reduction agreement, as defined by that Act, if
the annuity contract is not an eligible qualified investment under
that Act or is not registered with the Teacher Retirement System of
Texas as required by Section 8A of that Act;
(27) taking advantage of a disaster declared by the
governor under Chapter 418, Government Code, by:
(A) selling or leasing fuel, food, medicine, or
another necessity at an exorbitant or excessive price; or
(B) demanding an exorbitant or excessive price in
connection with the sale or lease of fuel, food, medicine, or
another necessity;
(28) using the translation into a foreign language of
a title or other word, including "attorney," "immigration
consultant," "immigration expert," "lawyer," "licensed," "notary,"
and "notary public," in any written or electronic material,
including an advertisement, a business card, a letterhead,
stationery, a website, or an online video, in reference to a person
who is not an attorney in order to imply that the person is
authorized to practice law in the United States;
(29) [(28)] delivering or distributing a solicitation
in connection with a good or service that:
(A) represents that the solicitation is sent on
behalf of a governmental entity when it is not; or
(B) resembles a governmental notice or form that
represents or implies that a criminal penalty may be imposed if the
recipient does not remit payment for the good or service;
(30) [(29)] delivering or distributing a solicitation
in connection with a good or service that resembles a check or other
negotiable instrument or invoice, unless the portion of the
solicitation that resembles a check or other negotiable instrument
or invoice includes the following notice, clearly and conspicuously
printed in at least 18-point type:
"SPECIMEN-NON-NEGOTIABLE";
(31) [(30)] in the production, sale, distribution, or
promotion of a synthetic substance that produces and is intended to
produce an effect when consumed or ingested similar to, or in excess
of, the effect of a controlled substance or controlled substance
analogue, as those terms are defined by Section 481.002, Health and
Safety Code:
(A) making a deceptive representation or
designation about the synthetic substance; or
(B) causing confusion or misunderstanding as to
the effects the synthetic substance causes when consumed or
ingested; or
(32) [(31)] a licensed public insurance adjuster
directly or indirectly soliciting employment, as defined by Section
38.01, Penal Code, for an attorney, or a licensed public insurance
adjuster entering into a contract with an insured for the primary
purpose of referring the insured to an attorney without the intent
to actually perform the services customarily provided by a licensed
public insurance adjuster, provided that this subdivision may not
be construed to prohibit a licensed public insurance adjuster from
recommending a particular attorney to an insured.
SECTION 2.002. Section 406.017, Government Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A person commits an offense if the person is a notary
public and the person:
(1) states or implies that the person is an attorney
licensed to practice law in this state;
(2) solicits or accepts compensation to prepare
documents for or otherwise represent the interest of another in a
judicial or administrative proceeding, including a proceeding
relating to immigration or admission to the United States, United
States citizenship, or related matters;
(3) solicits or accepts compensation to obtain relief
of any kind on behalf of another from any officer, agency, or
employee of this state or the United States;
(4) uses the phrase "notario" or "notario publico" to
advertise the services of a notary public, whether by signs,
pamphlets, stationery, or other written communication or by radio
or television; or
(5) advertises the services of a notary public in a
language other than English, whether by signs, pamphlets,
stationery, or other written communication or by radio or
television, if the person does not post or otherwise include with
the advertisement a notice that complies with Subsection (b).
(a-1) A person does not violate this section by offering or
providing language translation or typing services and accepting
compensation.
SECTION 2.003. The change in law made by this article to
Section 17.46(b), Business & Commerce Code, applies only to a cause
of action that accrues on or after the effective date of this Act. A
cause of action that accrued before the effective date of this Act
is governed by the law in effect immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 2.004. The change in law made by this article to
Section 406.017, Government Code, applies only to an offense
committed on or after the effective date of this Act. An offense
committed before the effective date of this Act is governed by the
law in effect when the offense was committed, and the former law is
continued in effect for that purpose. For purposes of this section,
an offense was committed before the effective date of this Act if
any element of the offense occurred before that date.
ARTICLE 3. REPORT ON OCCUPATIONAL LICENSING BY COMPTROLLER
SECTION 3.001. Subchapter B, Chapter 403, Government Code,
is amended by adding Section 403.03058 to read as follows:
Sec. 403.03058. REPORT ON OCCUPATIONAL LICENSING. (a) Not
later than December 31 of each even-numbered year, the comptroller
shall prepare and submit to the legislature a report regarding all
occupational licenses, including permits, certifications, and
registrations, required by this state. The report must include:
(1) for each type of license:
(A) a description of the license;
(B) the department with regulatory authority for
the license;
(C) the number of active licenses;
(D) the cost of an initial application for the
license and for a renewal of the license; and
(E) the amount of state revenue generated from
the issuance and renewal of the license; and
(2) a list of all statutory provisions requiring a
license that were abolished during the previous legislative
session.
(b) The comptroller shall post on its Internet website the
report prepared under Subsection (a).
SECTION 3.002. Not later than December 31, 2018, the
comptroller of public accounts shall provide the initial report to
the legislature as required by Section 403.03058, Government Code,
as added by this article.
ARTICLE 4. CERTIFICATE OF AUTHORITY; OVER-THE-COUNTER SALE OF
EPHEDRINE, PSEUDOEPHEDRINE, AND NORPSEUDOEPHEDRINE BY
ESTABLISHMENTS OTHER THAN PHARMACIES
SECTION 4.001. Sections 486.004(a) and (b), Health and
Safety Code, are amended to read as follows:
(a) The department shall collect fees for[:
[(1) the issuance of a certificate of authority under
this chapter; and
[(2)] an inspection performed in enforcing this
chapter and rules adopted under this chapter.
(b) The executive commissioner by rule shall set the fees in
amounts that allow the department to recover the biennial
expenditures of state funds by the department in[:
[(1) reviewing applications for the issuance of a
certificate of authority under this chapter;
[(2) issuing certificates of authority under this
chapter;
[(3) inspecting and auditing a business establishment
that is issued a certificate of authority under this chapter; and
[(4) otherwise] implementing and enforcing this
chapter.
SECTION 4.002. Section 486.0142(b), Health and Safety Code,
is amended to read as follows:
(b) On application by a business establishment that engages
in over-the-counter sales of products containing ephedrine,
pseudoephedrine, or norpseudoephedrine [in accordance with a
certificate of authority issued under Section 486.012], the
department may grant that business establishment a temporary
exemption, not to exceed 180 days, from the requirement of using a
real-time electronic logging system under this chapter.
SECTION 4.003. Section 486.012, Health and Safety Code, is
repealed.
ARTICLE 5. TITLE ATTORNEY LICENSE; ATTORNEY'S TITLE INSURANCE
COMPANY
SECTION 5.001. Section 35.001(2), Insurance Code, is
amended to read as follows:
(2) "Regulated entity" means each insurer,
organization, person, or program regulated by the department,
including:
(A) a domestic or foreign, stock or mutual, life,
health, or accident insurance company;
(B) a domestic or foreign, stock or mutual, fire
or casualty insurance company;
(C) a Mexican casualty company;
(D) a domestic or foreign Lloyd's plan;
(E) a domestic or foreign reciprocal or
interinsurance exchange;
(F) a domestic or foreign fraternal benefit
society;
(G) a domestic or foreign title insurance
company;
(H) [an attorney's title insurance company;
[(I)] a stipulated premium company;
(I) [(J)] a nonprofit legal service corporation;
(J) [(K)] a health maintenance organization;
(K) [(L)] a statewide mutual assessment company;
(L) [(M)] a local mutual aid association;
(M) [(N)] a local mutual burial association;
(N) [(O)] an association exempt under Section
887.102;
(O) [(P)] a nonprofit hospital, medical, or
dental service corporation, including a company subject to Chapter
842;
(P) [(Q)] a county mutual insurance company;
(Q) [(R)] a farm mutual insurance company; and
(R) [(S)] an agency or agent of an insurer,
organization, person, or program described by this subdivision.
SECTION 5.002. Section 82.002(a), Insurance Code, is
amended to read as follows:
(a) This chapter applies to each company regulated by the
commissioner, including:
(1) a domestic or foreign, stock or mutual, life,
health, or accident insurance company;
(2) a domestic or foreign, stock or mutual, fire or
casualty insurance company;
(3) a Mexican casualty company;
(4) a domestic or foreign Lloyd's plan insurer;
(5) a domestic or foreign reciprocal or interinsurance
exchange;
(6) a domestic or foreign fraternal benefit society;
(7) a domestic or foreign title insurance company;
(8) [an attorney's title insurance company;
[(9)] a stipulated premium insurance company;
(9) [(10)] a nonprofit legal service corporation;
(10) [(11)] a health maintenance organization;
(11) [(12)] a statewide mutual assessment company;
(12) [(13)] a local mutual aid association;
(13) [(14)] a local mutual burial association;
(14) [(15)] an association exempt under Section
887.102;
(15) [(16)] a nonprofit hospital, medical, or dental
service corporation, including a company subject to Chapter 842;
(16) [(17)] a county mutual insurance company; and
(17) [(18)] a farm mutual insurance company.
SECTION 5.003. Section 83.002(a), Insurance Code, is
amended to read as follows:
(a) This chapter applies to each company regulated by the
commissioner, including:
(1) a domestic or foreign, stock or mutual, life,
health, or accident insurance company;
(2) a domestic or foreign, stock or mutual, fire or
casualty insurance company;
(3) a Mexican casualty company;
(4) a domestic or foreign Lloyd's plan insurer;
(5) a domestic or foreign reciprocal or interinsurance
exchange;
(6) a domestic or foreign fraternal benefit society;
(7) a domestic or foreign title insurance company;
(8) [an attorney's title insurance company;
[(9)] a stipulated premium insurance company;
(9) [(10)] a nonprofit legal service corporation;
(10) [(11)] a statewide mutual assessment company;
(11) [(12)] a local mutual aid association;
(12) [(13)] a local mutual burial association;
(13) [(14)] an association exempt under Section
887.102;
(14) [(15)] a nonprofit hospital, medical, or dental
service corporation, including a company subject to Chapter 842;
(15) [(16)] a county mutual insurance company; and
(16) [(17)] a farm mutual insurance company.
SECTION 5.004. Section 554.001, Insurance Code, is amended
to read as follows:
Sec. 554.001. APPLICABILITY OF CHAPTER. This chapter
applies to each insurer or health maintenance organization engaged
in the business of insurance or the business of a health maintenance
organization in this state, regardless of form and however
organized, including:
(1) a stock life, health, or accident insurance
company;
(2) a mutual life, health, or accident insurance
company;
(3) a stock fire or casualty insurance company;
(4) a mutual fire or casualty insurance company;
(5) a Mexican casualty insurance company;
(6) a Lloyd's plan;
(7) a reciprocal or interinsurance exchange;
(8) a fraternal benefit society;
(9) a title insurance company;
(10) [an attorney's title insurance company;
[(11)] a stipulated premium company;
(11) [(12)] a nonprofit legal services corporation;
(12) [(13)] a statewide mutual assessment company;
(13) [(14)] a local mutual aid association;
(14) [(15)] a local mutual burial association;
(15) [(16)] an association exempt under Section
887.102;
(16) [(17)] a nonprofit hospital, medical, or dental
service corporation, including a corporation subject to Chapter
842;
(17) [(18)] a county mutual insurance company;
(18) [(19)] a farm mutual insurance company; and
(19) [(20)] an insurer or health maintenance
organization engaged in the business of insurance or the business
of a health maintenance organization in this state that does not
hold a certificate of authority issued by the department or is not
otherwise authorized to engage in business in this state.
SECTION 5.005. Section 703.001, Insurance Code, is amended
to read as follows:
Sec. 703.001. DEFINITION. In this chapter, "covered
entity" means a health maintenance organization or insurer
regulated by the department, including:
(1) a stock life, health, or accident insurance
company;
(2) a mutual life, health, or accident insurance
company;
(3) a stock fire or casualty insurance company;
(4) a mutual fire or casualty insurance company;
(5) a Mexican casualty insurance company;
(6) a Lloyd's plan;
(7) a reciprocal or interinsurance exchange;
(8) a fraternal benefit society;
(9) a title insurance company;
(10) [an attorney's title insurance company;
[(11)] a stipulated premium company;
(11) [(12)] a nonprofit legal services corporation;
(12) [(13)] a statewide mutual assessment company;
(13) [(14)] a local mutual aid association;
(14) [(15)] a local mutual burial association;
(15) [(16)] an association exempt under Section
887.102;
(16) [(17)] a nonprofit hospital, medical, or dental
service corporation, including a corporation subject to Chapter
842;
(17) [(18)] a county mutual insurance company; and
(18) [(19)] a farm mutual insurance company.
SECTION 5.006. Section 802.051, Insurance Code, is amended
to read as follows:
Sec. 802.051. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to each company regulated by the commissioner, including:
(1) a stock life, health, or accident insurance
company;
(2) a mutual life, health, or accident insurance
company;
(3) a stock fire or casualty insurance company;
(4) a mutual fire or casualty insurance company;
(5) a Mexican casualty company;
(6) a Lloyd's plan;
(7) a reciprocal or interinsurance exchange;
(8) a fraternal benefit society;
(9) a title insurance company;
(10) [an attorney's title insurance company;
[(11)] a stipulated premium insurance company;
(11) [(12)] a nonprofit legal service corporation;
(12) [(13)] a health maintenance organization;
(13) [(14)] a statewide mutual assessment company;
(14) [(15)] a local mutual aid association;
(15) [(16)] a local mutual burial association;
(16) [(17)] an association exempt under Section
887.102;
(17) [(18)] a nonprofit hospital, medical, or dental
service corporation, including a company subject to Chapter 842;
(18) [(19)] a county mutual insurance company; and
(19) [(20)] a farm mutual insurance company.
SECTION 5.007. Section 2551.053(a), Insurance Code, is
amended to read as follows:
(a) A [Except as provided by Section 2552.053(b), a] title
insurance company must have a paid-up capital of at least $1 million
and a surplus of at least $1 million.
SECTION 5.008. Section 2602.003(2), Insurance Code, is
amended to read as follows:
(2) "Agent" includes:
(A) a title insurance agent, as defined by
Section 2501.003; and
(B) [a title attorney, as defined by Section
2552.002; and
[(C)] a direct operation or a title insurance
company's wholly owned subsidiary or affiliate that performs the
services usually and customarily performed by a title insurance
agent.
SECTION 5.009. Chapter 2552, Insurance Code, is repealed.
SECTION 5.010. The changes in law made by this article do
not affect the right of any individual licensed before the
effective date of this Act to engage in the applicable occupation
for the remainder of the term for which the license was issued.
ARTICLE 6. EMERGENCY MANAGING GENERAL AGENT LICENSE
SECTION 6.001. Section 4053.052, Insurance Code, is
repealed.
SECTION 6.002. The changes in law made by this article do
not affect the right of any individual licensed before the
effective date of this Act to engage in the applicable occupation
for the remainder of the term for which the license was issued.
ARTICLE 7. TEMPORARY COMMON WORKER EMPLOYERS
SECTION 7.001. Section 92.001(a), Labor Code, is amended to
read as follows:
(a) The legislature finds that this chapter is necessary to:
(1) provide for the health, safety, and welfare of
common workers throughout this state; and
(2) establish uniform standards of conduct and
practice for temporary common worker [certain] employers in this
state.
SECTION 7.002. Section 92.002, Labor Code, is amended by
amending Subdivision (6) and adding Subdivision (6-a) to read as
follows:
(6) "Labor hall" means a central location maintained
by a temporary common worker employer [license holder] where common
workers assemble and are dispatched to work for a user of common
workers.
(6-a) "Municipality" has the meaning assigned by
Section 1.005, Local Government Code.
SECTION 7.003. The heading to Subchapter B, Chapter 92,
Labor Code, is amended to read as follows:
SUBCHAPTER B. AUTHORITY TO OPERATE [LICENSE REQUIREMENTS]
SECTION 7.004. Subchapter B, Chapter 92, Labor Code, is
amended by adding Section 92.0115 to read as follows:
Sec. 92.0115. AUTHORITY TO OPERATE. Subject to Section
92.013 and unless prohibited by a governmental subdivision, a
person may operate as a temporary common worker employer in this
state if the person meets the requirements of this chapter.
SECTION 7.005. The heading to Section 92.012, Labor Code,
is amended to read as follows:
Sec. 92.012. EXEMPTIONS [FROM LICENSING REQUIREMENT].
SECTION 7.006. Section 92.013(b), Labor Code, is amended to
read as follows:
(b) A municipality with a population greater than one
million may establish municipal [licensing] requirements that
impose stricter standards of conduct and practice than those
imposed under Subchapter C.
SECTION 7.007. The heading to Subchapter C, Chapter 92,
Labor Code, is amended to read as follows:
SUBCHAPTER C. STANDARDS OF CONDUCT AND PRACTICE [POWERS AND DUTIES
OF LICENSE HOLDER]
SECTION 7.008. Section 92.021, Labor Code, is amended to
read as follows:
Sec. 92.021. POWERS AND DUTIES OF [LICENSE HOLDER AS]
EMPLOYER. (a) Each temporary common worker employer [license
holder] is the employer of the common workers provided by that
temporary common worker employer [license holder].
(b) A temporary common worker employer [license holder] may
hire, reassign, control, direct, and discharge the employees of the
temporary common worker employer [license holder].
SECTION 7.009. Section 92.022, Labor Code, is amended to
read as follows:
Sec. 92.022. REQUIRED RECORDS; CONFIDENTIALITY. (a) Each
temporary common worker employer [license holder] shall maintain
and make available to a governmental subdivision [representative of
the department] records that show for each common worker provided
by the temporary common worker employer [license holder] to a user
of common workers:
(1) the name and address of the worker;
(2) the hours worked;
(3) the places at which the work was performed;
(4) the wages paid to the worker; and
(5) any deductions made from those wages.
(b) The temporary common worker employer [license holder]
shall maintain the records at least until the second anniversary of
the date on which the worker was last employed by the temporary
common worker employer [license holder].
(c) Information received by the governmental subdivision
[commission or department] under this section is privileged and
confidential and is for the exclusive use of the governmental
subdivision [commission or department]. The information may not be
disclosed to any other person except on the entry of a court order
requiring disclosure or on the written consent of a person under
investigation who is the subject of the records.
SECTION 7.010. Section 92.023(b), Labor Code, is amended to
read as follows:
(b) Each temporary common worker employer [license holder]
shall [also] post in a conspicuous place in the [licensed] premises
on which the temporary common worker employer operates a notice of
any charge permitted under this chapter that the temporary common
worker employer [license holder] may assess against a common worker
for equipment, tools, transportation, or other work-related
services.
SECTION 7.011. Section 92.024, Labor Code, is amended to
read as follows:
Sec. 92.024. LABOR HALL REQUIREMENTS. A temporary common
worker employer [license holder] that operates a labor hall as part
of a [licensed] premises on which the temporary common worker
employer operates shall provide adequate facilities for a worker
waiting for a job assignment. The facilities must include:
(1) restroom facilities for both men and women;
(2) drinking water;
(3) sufficient seating; and
(4) access to vending refreshments and food.
SECTION 7.012. Section 92.025, Labor Code, is amended to
read as follows:
Sec. 92.025. CERTAIN CHARGES AND DEDUCTIONS PROHIBITED.
(a) A temporary common worker employer [license holder] may not
charge a common worker for:
(1) safety equipment, clothing, or accessories
required by the nature of the work, either by law, custom, or the
requirements of the user of common workers;
(2) uniforms, special clothing, or other items
required as a condition of employment by the user of common workers;
(3) the cashing of a check or voucher; or
(4) the receipt by the worker of earned wages.
(b) A temporary common worker employer [license holder] may
not deduct or withhold any amount from the earned wages of a common
worker except:
(1) a deduction required by federal or state law; or
(2) a reimbursement for a cash advance made to the
worker during the same pay period.
SECTION 7.013. Chapter 92, Labor Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. ENFORCEMENT
Sec. 92.031. ENFORCEMENT. A governmental subdivision may
enforce this chapter within the boundaries of the governmental
subdivision.
SECTION 7.014. The following provisions of the Labor Code
are repealed:
(1) Sections 92.002(1), (4), and (4-a);
(2) Section 92.003;
(3) Section 92.004;
(4) Section 92.011;
(5) Section 92.013(a);
(6) Section 92.014;
(7) Section 92.015; and
(8) Section 92.023(a).
SECTION 7.015. (a) An administrative proceeding pending
under Chapter 51, Occupations Code, or Chapter 92, Labor Code, on
the effective date of this Act related to a violation of Chapter 92,
Labor Code, as that chapter existed immediately before the
effective date of this Act, is dismissed.
(b) An administrative penalty assessed by the Texas
Commission of Licensing and Regulation or the executive director of
the Texas Department of Licensing and Regulation related to a
violation of Chapter 92, Labor Code, as that chapter existed
immediately before the effective date of this Act, may be collected
as provided by Chapter 51, Occupations Code.
(c) The changes in law made by this Act do not affect the
pending prosecution of an offense under Chapter 92, Labor Code, as
that chapter existed immediately before the effective date of this
Act. An offense committed before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this subsection, an offense was committed before the
effective date of this Act if any element of the offense was
committed before that date.
ARTICLE 8. FOR-PROFIT LEGAL SERVICE CONTRACT COMPANIES
SECTION 8.001. Section 953.001(1), Occupations Code, is
amended to read as follows:
(1) "Administrator" means the person responsible for
the administration of a legal service contract. [The term includes
a person responsible for any filing required by this chapter.]
SECTION 8.002. Section 953.156, Occupations Code, is
amended to read as follows:
Sec. 953.156. FORM OF LEGAL SERVICE CONTRACT AND REQUIRED
DISCLOSURES. [(a) A legal service contract must be filed with the
executive director before it is marketed, sold, offered for sale,
administered, or issued in this state. Any subsequent endorsement
or attachment to the contract must also be filed with the executive
director before the endorsement or attachment is delivered to legal
service contract holders.
[(b)] A legal service contract marketed, sold, offered for
sale, administered, or issued in this state must:
(1) be written, printed, or typed in clear,
understandable language that is easy to read;
(2) include the name and full address of the company;
(3) include the purchase price of the contract and the
terms under which the contract is sold;
(4) include the terms and restrictions governing
cancellation of the contract by the company or the legal service
contract holder;
(5) identify:
(A) any administrator, if the administrator is
not the company;
(B) the sales representative; and
(C) the name of the legal service contract
holder;
(6) include the amount of any deductible or copayment;
(7) specify the legal services and other benefits to
be provided under the contract, and any limitation, exception, or
exclusion;
(8) specify the legal services, if any, for which the
company will provide reimbursement and the amount of that
reimbursement;
(9) specify any restriction governing the
transferability of the contract or the assignment of benefits;
(10) include the duties of the legal service contract
holder;
(11) [include the contact information for the
department, including the department's toll-free number and
electronic mail address, as well as a statement that the department
regulates the company and the company's sales representatives;
[(12)] explain the method to be used in resolving the
legal service contract holder's complaints and grievances;
(12) [(13)] explain how legal services may be obtained
under the legal service contract;
(13) [(14)] include a provision stating that no change
in the contract is valid until the change has been approved by an
executive officer of the company and unless the approval is
endorsed or attached to the contract;
(14) [(15)] include any eligibility and effective
date requirements, including a definition of eligible dependents
and the effective date of their coverage;
(15) [(16)] include the conditions under which
coverage will terminate;
(16) [(17)] explain any subrogation arrangements;
(17) [(18)] contain a payment provision that provides
for a grace period of at least 31 days; and
(18) [(19)] include conditions under which contract
rates may be modified[; and
[(20) include any other items required by the
executive director as determined by rule].
SECTION 8.003. Section 953.162, Occupations Code, is
amended to read as follows:
Sec. 953.162. APPOINTMENT AND RESPONSIBILITIES OF
ADMINISTRATOR. [(a)] A company may appoint an administrator or
designate a person to be responsible for:
(1) all or any part of the administration or sale of
legal service contracts; and
(2) compliance with this chapter.
[(b) The executive director may adopt rules regarding the
registration of an administrator with the department.]
SECTION 8.004. Chapter 953, Occupations Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. ENFORCEMENT
Sec. 953.251. DECEPTIVE TRADE PRACTICE. A violation of
this chapter is a deceptive trade practice actionable under
Subchapter E, Chapter 17, Business & Commerce Code.
SECTION 8.005. The following provisions of the Occupations
Code are repealed:
(1) Sections 953.001(4), (5), and (6);
(2) Sections 953.004, 953.005, and 953.155; and
(3) Subchapters B, C, and E, Chapter 953.
SECTION 8.006. (a) On the effective date of this article,
a registration issued under former Subchapter B, Chapter 953,
Occupations Code, expires.
(b) On the effective date of this article, a pending
proceeding under Chapter 953, Occupations Code, including a
complaint investigation, disciplinary action, or administrative
penalty proceeding, relating to a registration issued under former
Subchapter B, Chapter 953, Occupations Code, or relating to another
former provision of Chapter 953, Occupations Code, that is repealed
by this article, is dismissed.
SECTION 8.007. This article takes effect September 1, 2019.
ARTICLE 9. PLUMBING
SECTION 9.001. Section 1301.704, Occupations Code, is
amended by adding Subsections (c) and (d) to read as follows:
(c) Failure to request a hearing or accept the determination
and recommended penalty within the time provided by this section
waives the right to a hearing under this chapter.
(d) If the board determines without a hearing that the
person committed a violation and a penalty is to be imposed, the
board shall:
(1) provide written notice to the person of the board's
findings; and
(2) enter an order requiring the person to pay the
recommended penalty.
SECTION 9.002. Section 1301.705(a), Occupations Code, is
amended to read as follows:
(a) If the person requests a hearing [or fails to respond in
a timely manner to the notice], the enforcement committee shall set
a hearing and give written notice of the hearing to the person. An
administrative law judge of the State Office of Administrative
Hearings shall hold the hearing.
SECTION 9.003. The change in law made by this article to
Section 1301.704, Occupations Code, applies only to imposition of
an administrative penalty against a person who receives notice
under Section 1301.703(b), Occupations Code, on or after the
effective date of this Act. An administrative penalty for which
notice under that section is received before the effective date of
this Act is governed by the law in effect on the date the notice was
received, and the former law is continued in effect for that
purpose.
ARTICLE 10. BARBERING AND COSMETOLOGY
SECTION 10.001. Section 1601.002, Occupations Code, is
amended to read as follows:
Sec. 1601.002. DEFINITION OF BARBERING. In this chapter,
"barbering," "practicing barbering," or the "practice of
barbering" means:
(1) performing or offering or attempting to perform
for compensation or the promise of compensation any of the
following services:
(A) treating a person's mustache or beard by
arranging, beautifying, coloring, processing, shaving, styling, or
trimming;
(B) treating a person's hair by:
(i) arranging, beautifying, bleaching,
cleansing, coloring, curling, dressing, dyeing, processing,
[shampooing,] shaping, singeing, straightening, styling, tinting,
or waving;
(ii) providing a necessary service that is
preparatory or ancillary to a service under Subparagraph (i),
including bobbing, clipping, cutting, or trimming; or
(iii) cutting the person's hair as a
separate and independent service for which a charge is directly or
indirectly made separately from a charge for any other service;
(C) cleansing, stimulating, or massaging a
person's scalp, face, neck, arms, or shoulders:
(i) by hand or by using a device, apparatus,
or appliance; and
(ii) with or without the use of any cosmetic
preparation, antiseptic, tonic, lotion, or cream;
(D) beautifying a person's face, neck, arms, or
shoulders using a cosmetic preparation, antiseptic, tonic, lotion,
powder, oil, clay, cream, or appliance;
(E) treating a person's nails by:
(i) cutting, trimming, polishing, tinting,
coloring, cleansing, manicuring, or pedicuring; or
(ii) attaching false nails;
(F) massaging, cleansing, treating, or
beautifying a person's hands;
(G) administering facial treatments;
(H) weaving a person's hair by using any method
to attach commercial hair to a person's hair or scalp; or
(I) [shampooing or conditioning a person's hair;
or
[(J)] servicing in any manner listed in Paragraph
(B) a person's wig, toupee, or artificial hairpiece on a person's
head or on a block after the initial retail sale;
(2) advertising or representing to the public in any
manner that a person is a barber or is authorized to practice
barbering; or
(3) advertising or representing to the public in any
manner that a location or place of business is a barbershop,
specialty shop, or barber school.
SECTION 10.002. Subchapter A, Chapter 1601, Occupations
Code, is amended by adding Section 1601.0025 to read as follows:
Sec. 1601.0025. SERVICES NOT CONSTITUTING BARBERING.
Notwithstanding Section 1601.002, "barbering," "practicing
barbering," and "practice of barbering" do not include 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.
SECTION 10.003. Section 1601.256(a), Occupations Code, is
amended to read as follows:
(a) A person holding a barber technician license may:
(1) perform only barbering as defined by Sections
1601.002(1)(C), (D), (F), and (G)[, and (I)]; and
(2) practice only at a location that has been issued a
barbershop permit.
SECTION 10.004. Section 1601.353, Occupations Code, is
amended to read as follows:
Sec. 1601.353. REQUIRED FACILITIES AND EQUIPMENT. The
department may approve an application for a permit for a barber
school if the school meets the health and safety standards
established by the commission. The commission may not establish
building or facility standards that are not related to health and
safety, including a requirement that a facility have a specific:
(1) square footage of floor space [is located in:
[(A) a municipality with a population of more
than 50,000 that has a building of permanent construction
containing at least 2,000 square feet of floor space, including
classroom and practical areas, covered in a hard-surface
floor-covering of tile or other suitable material; or
[(B) a municipality with a population of 50,000
or less or an unincorporated area of a county that has a building of
permanent construction containing at least 1,000 square feet of
floor space, including classroom and practical areas, covered in a
hard-surface floor-covering of tile or other suitable material];
(2) number of chairs [has the following equipment:
[(A) at least 10 student workstations that
include a chair that reclines, a back bar, and a wall mirror;
[(B) a sink behind every two workstations;
[(C) adequate lighting for each room;
[(D) at least 10 classroom chairs and other
materials necessary to teach the required subjects; and
[(E) access to permanent restrooms and adequate
drinking fountain facilities]; or [and]
(3) number of sinks [meets any other requirement set
by the commission].
SECTION 10.005. Section 1602.002(a), Occupations Code, is
amended to read as follows:
(a) In this chapter, "cosmetology" means the practice 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,
[shampooing,] 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) [shampooing and conditioning a person's hair;
[(3)] servicing a person's wig or artificial hairpiece
on a person's head or on a block after the initial retail sale and
servicing in any manner listed in Subdivision (1);
(3) [(4)] treating a person's mustache or beard by
arranging, beautifying, coloring, processing, styling, trimming,
or shaving with a safety razor;
(4) [(5)] cleansing, stimulating, or massaging a
person's scalp, face, neck, 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;
(5) [(6)] beautifying a person's face, neck, or arms
using a cosmetic preparation, antiseptic, tonic, lotion, powder,
oil, clay, cream, or appliance;
(6) [(7)] administering facial treatments;
(7) [(8)] removing superfluous hair from a person's
body using depilatories, preparations or chemicals, tweezers, or
other devices or appliances of any kind or description [tweezing
techniques];
(8) [(9)] treating a person's nails by:
(A) cutting, trimming, polishing, tinting,
coloring, cleansing, or manicuring; or
(B) attaching false nails;
(9) [(10)] massaging, cleansing, treating, or
beautifying a person's hands or feet;
(10) [(11)] applying semipermanent, thread-like
extensions composed of single fibers to a person's eyelashes; or
(11) [(12)] weaving a person's hair.
SECTION 10.006. Subchapter A, Chapter 1602, Occupations
Code, is amended by adding Section 1602.0025 to read as follows:
Sec. 1602.0025. SERVICES NOT CONSTITUTING COSMETOLOGY.
Notwithstanding Section 1602.002(a), "cosmetology" does not
include 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.
SECTION 10.007. Section 1602.255(c), Occupations Code, is
amended to read as follows:
(c) The commission shall adopt rules for the licensing of
specialty instructors to teach specialty courses in the practice of
cosmetology defined in Sections 1602.002(a)(5), (7), (8), and (10)
[1602.002(a)(6), (8), (9), and (11)].
SECTION 10.008. Section 1602.256(a), Occupations Code, is
amended to read as follows:
(a) A person holding a manicurist specialty license may
perform only the practice of cosmetology defined in Section
1602.002(a)(8) or (9) [1602.002(a)(9) or (10)].
SECTION 10.009. Section 1602.257(a), Occupations Code, is
amended to read as follows:
(a) A person holding an esthetician specialty license may
perform only the practice of cosmetology defined in Sections
1602.002(a)(4), (5), (6), (7), and (10) [1602.002(a)(5), (6), (7),
(8), and (11)].
SECTION 10.010. Section 1602.2571(a), Occupations Code, is
amended to read as follows:
(a) A person holding a specialty license in eyelash
extension application may perform only the practice of cosmetology
defined in Section 1602.002(a)(10) [1602.002(a)(11)].
SECTION 10.011. Section 1602.259(a), Occupations Code, is
amended to read as follows:
(a) A person holding a hair weaving specialty certificate
may perform only the practice of cosmetology defined in Section
1602.002(a)(11) [Sections 1602.002(a)(2) and (12)].
SECTION 10.012. Section 1602.260(a), Occupations Code, is
amended to read as follows:
(a) A person holding a wig specialty certificate may perform
only the practice of cosmetology defined in Section 1602.002(a)(2)
[1602.002(a)(3)].
SECTION 10.013. Section 1602.261(a), Occupations Code, is
amended to read as follows:
(a) A person holding a manicurist/esthetician specialty
license may perform only the practice of cosmetology defined in
Sections 1602.002(a)(4) through (9) [1602.002(a)(5) through (10)].
SECTION 10.014. Section 1602.303, Occupations Code, is
amended by amending Subsections (b) and (c) and adding Subsection
(d) to read as follows:
(b) An application for a private beauty culture school
license must be accompanied by the required license fee and
inspection fee and:
(1) be on a form prescribed by the department;
(2) be verified by the applicant; and
(3) contain a statement that the building meets the
health and safety standards established by the commission[:
[(A) is of permanent construction and is divided
into at least two separate areas:
[(i) one area for instruction in theory;
and
[(ii) one area for clinic work;
[(B) contains a minimum of:
[(i) 2,800 square feet of floor space if the
building is located in a county with a population of more than
100,000; or
[(ii) 1,800 square feet of floor space if
the building is located in a county with a population of 100,000 or
less;
[(C) has access to permanent restrooms and
adequate drinking fountain facilities; and
[(D) contains, or will contain before classes
begin, the equipment established by commission rule as sufficient
to properly instruct a minimum of 10 students].
(c) The applicant is entitled to a private beauty culture
school license if:
(1) the department determines that the applicant is
financially sound and capable of fulfilling the school's
commitments for training;
(2) the applicant's facilities meet the health and
safety standards established by the commission and pass an
inspection conducted by the department under Section 1603.103; and
(3) the applicant has not committed an act that
constitutes a ground for denial of a license.
(d) The commission may not establish building or facility
standards that are not related to health and safety, including a
requirement that a facility have a specific:
(1) square footage of floor space;
(2) number of chairs; or
(3) number of sinks.
SECTION 10.015. Section 1602.305(a), Occupations Code, is
amended to read as follows:
(a) A person holding a specialty shop license may maintain
an establishment in which only the practice of cosmetology as
defined in Section 1602.002(a)(2), (5), (7), (8), or (10)
[1602.002(a)(3), (6), (8), (9), or (11)] is performed.
SECTION 10.016. Section 1602.354(a), Occupations Code, is
amended to read as follows:
(a) The commission will by rule recognize, prepare, or
administer continuing education programs for the practice of
cosmetology. Participation in the programs is mandatory for all
license renewals [other than renewal of a shampoo specialty
certificate].
SECTION 10.017. Section 1602.403(c), Occupations Code, is
amended to read as follows:
(c) A person holding a beauty shop license or specialty shop
license may not employ[:
[(1)] a person as an operator or specialist or lease to
a person who acts as an operator or specialist unless the person
holds a license or certificate under this chapter or under Chapter
1601[; or
[(2) a person to shampoo or condition a person's hair
unless the person holds a shampoo apprentice permit or student
permit].
SECTION 10.018. Section 1603.351, Occupations Code, is
amended by adding Subsection (a-1) to read as follows:
(a-1) Notwithstanding any other law, the commission may
adopt rules to:
(1) authorize a school licensed under this chapter,
Chapter 1601, or Chapter 1602 to account for any hours of
instruction completed under 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.
SECTION 10.019. Section 1603.352(a), Occupations Code, is
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 1602.002(a)(8) or
(9) [1602.002(a)(9) or (10)] 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.
SECTION 10.020. The following provisions of the Occupations
Code are repealed:
(1) Section 1601.260(c);
(2) Section 1601.261;
(3) Section 1601.301(c);
(4) Section 1602.266(c);
(5) Section 1602.267;
(6) Section 1602.301(c); and
(7) Section 1602.456(b-1).
SECTION 10.021. On the effective date of this Act:
(1) a shampoo apprentice permit issued under former
Section 1601.261 or 1602.267, Occupations Code, expires; and
(2) a shampoo specialty certificate issued under
Chapter 1602 expires.
SECTION 10.022. As soon as practicable after the effective
date of this Act, the Texas Commission of Licensing and Regulation
shall adopt rules to implement Sections 1601.353 and 1602.303,
Occupations Code, as amended by this article.
SECTION 10.023. (a) The changes in law made by this Act to
Chapters 1601, 1602, and 1603, Occupations Code, do not affect the
validity of a proceeding pending before a court or other
governmental entity on the effective date of this Act.
(b) An offense or other violation of law committed under
Chapter 1601, 1602, or 1603, Occupations Code, before the effective
date of this Act is governed by the law in effect when the offense or
violation was committed, and the former law is continued in effect
for that purpose. For purposes of this subsection, an offense or
violation was committed before the effective date of this Act if any
element of the offense or violation occurred before that date.
ARTICLE 11. VOLUNTEER SECURITY SERVICES
SECTION 11.001. Subchapter N, Chapter 1702, Occupations
Code, is amended by adding Section 1702.333 to read as follows:
Sec. 1702.333. PLACE OF RELIGIOUS WORSHIP; CERTAIN
VOLUNTEERS. (a) In this section, "volunteer security services"
means services or activities that are:
(1) regulated under this chapter; and
(2) provided without compensation or remuneration.
(b) This chapter does not apply to a person who is providing
volunteer security services on the premises of a church, synagogue,
or other established place of religious worship.
(c) While providing volunteer security services under
Subsection (b), a person may not wear a uniform or badge that:
(1) contains the word "security"; or
(2) gives the person the appearance of being a peace
officer, personal protection officer, or security officer.
ARTICLE 12. BINGO UNIT MANAGER LICENSE
SECTION 12.001. Section 2001.431(4), Occupations Code, is
amended to read as follows:
(4) "Unit manager" means an individual who is
[licensed under this subchapter to be] responsible for the
revenues, authorized expenses, and inventory of a unit.
SECTION 12.002. The heading to Section 2001.437,
Occupations Code, is amended to read as follows:
Sec. 2001.437. UNIT MANAGER[; LICENSE].
SECTION 12.003. Section 2001.437(c), Occupations Code, is
amended to read as follows:
(c) [A person may not provide services as a unit manager to
licensed authorized organizations that form a unit unless the
person holds a unit manager license under this subchapter.] A
person designated as an agent under Section 2001.438(b) is not a
unit manager on account of that designation for purposes of this
section.
SECTION 12.004. Sections 2001.437(d), (e), (f), and (g),
Occupations Code, are repealed.
SECTION 12.005. The changes in law made by this article do
not affect the right of any individual licensed before the
effective date of this Act to engage in the applicable occupation
for the remainder of the term for which the license was issued.
ARTICLE 13. AGRICULTURAL, INDUSTRIAL, AND WILDLIFE CONTROL
FIREWORKS PERMIT
SECTION 13.001. Section 2154.152(a), Occupations Code, is
amended to read as follows:
(a) A person must be a licensed distributor if the person:
(1) imports into this state or stores, possesses, and
sells Fireworks 1.3G to a licensed pyrotechnic operator or
distributor or to a single public display or[,] multiple public
display[, or agricultural, industrial, and wildlife control
fireworks] permit holder; or
(2) imports or stores, possesses, and sells Fireworks
1.4G to a licensed jobber, retailer, or distributor in this state.
SECTION 13.002. Section 2154.251(b), Occupations Code, is
amended to read as follows:
(b) A person may not manufacture, distribute, sell, or use
fireworks in a public fireworks display [or for agricultural,
industrial, or wildlife control purposes] without an appropriate
license or permit. Fireworks manufactured, distributed, sold, or
used without an appropriate license or permit are illegal
fireworks.
SECTION 13.003. Section 2154.203, Occupations Code, is
repealed.
ARTICLE 14. MOTOR VEHICLE TOWING, BOOTING, AND STORAGE
SECTION 14.001. Section 2303.058, Occupations Code, is
amended to read as follows:
Sec. 2303.058. ADVISORY BOARD. The Towing and[,] Storage[,
and Booting] Advisory Board under Chapter 2308 shall advise the
commission in adopting vehicle storage rules under this chapter.
SECTION 14.002. Section 2308.002, Occupations Code, is
amended by amending Subdivisions (1) and (8-a) and adding
Subdivisions (5-b) and (8-b) to read as follows:
(1) "Advisory board" means the Towing and[,] Storage[,
and Booting] Advisory Board.
(5-b) "Local authority" means a state or local
governmental entity authorized to regulate traffic or parking and
includes:
(A) an institution of higher education; and
(B) a political subdivision, including a county,
municipality, special district, junior college district, housing
authority, or other political subdivision of this state.
(8-a) "Peace officer" means a person who is a peace
officer under Article 2.12, Code of Criminal Procedure.
(8-b) "Private property tow" means any tow of a
vehicle authorized by a parking facility owner without the consent
of the owner or operator of the vehicle.
SECTION 14.003. Effective September 1, 2018, Section
2308.004, Occupations Code, is amended to read as follows:
Sec. 2308.004. EXEMPTION. Sections 2308.151(b),
2308.2085, 2308.257, and 2308.258 do [(a) This chapter does] not
apply to:
(1) a person who, while exercising a statutory or
contractual lien right with regard to a vehicle:
(A) [(1)] installs or removes a boot; or
(B) [(2)] controls, installs, or directs the
installation and removal of one or more boots; or[.]
(2) [(b) This chapter does not apply to] a commercial
office building owner or manager who installs or removes a boot in
the building's parking facility.
SECTION 14.004. Section 2308.051(a), Occupations Code, as
amended by Chapters 457 (H.B. 2548) and 845 (S.B. 2153), Acts of the
81st Legislature, Regular Session, 2009, is reenacted and amended
to read as follows:
(a) The advisory board consists of the following members
appointed by the presiding officer of the commission with the
approval of the commission:
(1) one representative of a towing company operating
in a county with a population of less than one million;
(2) one representative of a towing company operating
in a county with a population of one million or more;
(3) one representative [owner] of a vehicle storage
facility located in a county with a population of less than one
million;
(4) one representative [owner] of a vehicle storage
facility located in a county with a population of one million or
more;
(5) one parking facility representative [owner];
(6) one peace officer [law enforcement officer] from a
county with a population of less than one million;
(7) one peace officer [law enforcement officer] from a
county with a population of one million or more;
(8) one representative of a member insurer, as defined
by Section 462.004, Insurance Code, of the Texas Property and
Casualty Insurance Guaranty Association who writes [property and
casualty insurers who write] automobile insurance in this state;
and
[(9) one representative of a booting company]
(9) one person who operates both a towing company and a
vehicle storage facility [public member].
SECTION 14.005. Effective September 1, 2018, Section
2308.151, Occupations Code, is amended to read as follows:
Sec. 2308.151. LICENSE OR LOCAL AUTHORIZATION REQUIRED.
(a) Unless the person holds an appropriate license under this
subchapter, a person may not:
(1) perform towing operations; or
(2) operate a towing company.[;]
(b) Unless prohibited by a local authority under Section
2308.2085, a person may:
(1) [(3)] perform booting operations; and [or]
(2) [(4)] operate a booting company.
SECTION 14.006. Section 2308.205(a), Occupations Code, is
amended to read as follows:
(a) A towing company that makes a nonconsent tow shall tow
the vehicle to a vehicle storage facility that is operated by a
person who holds a license to operate the facility under Chapter
2303, unless:
(1) the towing company agrees to take the vehicle to a
location designated by the vehicle's owner; or
(2) the vehicle is towed under Section 2308.259(b).
SECTION 14.007. Section 2308.2085, Occupations Code, is
amended to read as follows:
Sec. 2308.2085. LOCAL AUTHORITY REGULATION OF [MUNICIPAL
ORDINANCE REGULATING] BOOTING ACTIVITIES [COMPANIES AND
OPERATORS]. (a) A local authority [municipality] may regulate, in
areas in which the entity regulates parking or traffic, [adopt an
ordinance that is identical to the] booting activities, including:
(1) operation of booting companies and operators that
operate on a parking facility;
(2) any permit and sign requirements in connection
with the booting of a vehicle; and
(3) [provisions in this chapter or that imposes
additional requirements that exceed the minimum standards of the
booting provisions in this chapter but may not adopt an ordinance
that conflicts with the booting provisions in this chapter.
[(b) A municipality may regulate the] fees that may be
charged in connection with the booting of a vehicle[, including
associated parking fees].
(b) Regulations adopted under this section must:
(1) incorporate the requirements of Sections 2308.257
and 2308.258;
(2) include procedures for vehicle owners and
operators to file a complaint with the local authority regarding a
booting company or operator; and
(3) provide for the imposition of a penalty on a
booting company or operator for a violation of Section 2308.258
[(c) A municipality may require booting companies to obtain a
permit to operate in the municipality].
SECTION 14.008. Section 2308.255, Occupations Code, is
amended to read as follows:
Sec. 2308.255. TOWING COMPANY'S [OR BOOT OPERATOR'S]
AUTHORITY TO TOW [REMOVE] AND STORE [OR BOOT] UNAUTHORIZED VEHICLE.
(a) A towing company [that is insured as provided by Subsection
(c)] may, without the consent of an owner or operator of an
unauthorized vehicle, tow the vehicle to [remove] and store the
vehicle at a vehicle storage facility at the expense of the owner or
operator of the vehicle if:
(1) the towing company has received written
verification from the parking facility owner that:
(A) [the parking facility owner has installed]
the signs required by Section 2308.252(a)(1) are posted; or
(B) the owner or operator received notice under
Section 2308.252(a)(2) or the parking facility owner gave notice
complying with Section 2308.252(a)(3); or
(2) on request the parking facility owner provides to
the owner or operator of the vehicle information on the name of the
towing company and vehicle storage facility that will be used to tow
[remove] and store the vehicle and the vehicle is:
(A) left in violation of Section 2308.251;
(B) in or obstructing a portion of a paved
driveway; or
(C) on a public roadway used for entering or
exiting the facility and the tow [removal] is approved by a peace
officer.
(b) A towing company may not tow [remove] an unauthorized
vehicle except under:
(1) this chapter;
(2) a municipal ordinance that complies with Section
2308.208; or
(3) the direction of:
(A) a peace officer; or
(B) the owner or operator of the vehicle.
(c) Only a towing company that is insured against liability
for property damage incurred in towing a vehicle may tow [remove]
and store an unauthorized vehicle under this section.
(d) A towing company may tow [remove] and store a vehicle
under Subsection (a) [and a boot operator may boot a vehicle under
Section 2308.257] only if the parking facility owner:
(1) requests that the towing company tow [remove] and
store [or that the boot operator boot] the specific vehicle; or
(2) has a standing written agreement with the towing
company [or boot operator] to enforce parking restrictions in the
parking facility.
(e) When a tow truck is used for a nonconsent tow authorized
by a peace officer under Section 545.3051, Transportation Code, the
operator of the tow truck and the towing company are agents of the
law enforcement agency and are subject to Section 545.3051(e),
Transportation Code.
SECTION 14.009. Section 2308.257(b), Occupations Code, is
amended to read as follows:
(b) A boot operator that installs a boot on a vehicle must
affix a conspicuous notice to the vehicle's front windshield or
driver's side window stating:
(1) that the vehicle has been booted and damage may
occur if the vehicle is moved;
(2) the date and time the boot was installed;
(3) the name, address, and telephone number of the
booting company;
(4) a telephone number that is answered 24 hours a day
to enable the owner or operator of the vehicle to arrange for
removal of the boot;
(5) the amount of the fee for removal of the boot and
any associated parking fees; [and]
(6) notice of the right of a vehicle owner or vehicle
operator to a hearing under Subchapter J; and
(7) in the manner prescribed by the local authority,
notice of the procedure to file a complaint with the local authority
for violation of this chapter by a boot operator.
SECTION 14.010. Subchapter F, Chapter 2308, Occupations
Code, is amended by adding Sections 2308.258 and 2308.259 to read as
follows:
Sec. 2308.258. BOOT REMOVAL. (a) A booting company
responsible for the installation of a boot on a vehicle shall remove
the boot not later than one hour after the time the owner or
operator of the vehicle contacts the company to request removal of
the boot.
(b) A booting company shall waive the amount of the fee for
removal of a boot, excluding any associated parking fees, if the
company fails to have the boot removed within the time prescribed by
Subsection (a).
(c) A booting company responsible for the installation of
more than one boot on a vehicle may not charge a total amount for the
removal of the boots that is greater than the amount of the fee for
the removal of a single boot.
Sec. 2308.259. TOWING COMPANY'S AUTHORITY TO TOW VEHICLE
FROM UNIVERSITY PARKING FACILITY. (a) In this section:
(1) "Special event" means a university-sanctioned,
on-campus activity, including parking lot maintenance.
(2) "University" means:
(A) a public senior college or university, as
defined by Section 61.003, Education Code; or
(B) a private or independent institution of
higher education, as defined by Section 61.003, Education Code.
(b) Subject to Subsection (c), an individual designated by a
university may, to facilitate a special event, request that a
vehicle parked at a university parking facility be towed to another
location on the university campus.
(c) A vehicle may not be towed under Subsection (b) unless
signs complying with this section are installed on the parking
facility for the 72 hours preceding towing enforcement for the
special event and for 48 hours after the conclusion of the special
event.
(d) Each sign required under Subsection (c) must:
(1) contain:
(A) a statement of:
(i) the nature of the special event; and
(ii) the dates and hours of towing
enforcement; and
(B) the number, including the area code, of a
telephone that is answered 24 hours a day to identify the location
of a towed vehicle;
(2) face and be conspicuously visible to the driver of
a vehicle that enters the facility;
(3) be located:
(A) on the right or left side of each driveway or
curb-cut through which a vehicle can enter the facility, including
an entry from an alley abutting the facility; or
(B) at intervals along the entrance so that no
entrance is farther than 25 feet from a sign if:
(i) curbs, access barriers, landscaping, or
driveways do not establish definite vehicle entrances onto a
parking facility from a public roadway other than an alley; and
(ii) the width of an entrance exceeds 35
feet;
(4) be made of weather-resistant material;
(5) be at least 18 inches wide and 24 inches tall;
(6) be mounted on a pole, post, wall, or free-standing
board; and
(7) be installed so that the bottom edge of the sign is
no lower than two feet and no higher than six feet above ground
level.
(e) If a vehicle is towed under Subsection (b), personnel
must be available to:
(1) release the vehicle within two hours after a
request for release of the vehicle; and
(2) accept any payment required for the release of the
vehicle.
(f) A university may not charge a fee for a tow under
Subsection (b) that exceeds 75 percent of the private property tow
fee established under Section 2308.0575.
(g) A vehicle towed under Subsection (b) that is not claimed
by the vehicle owner or operator within 48 hours after the
conclusion of the special event may only be towed:
(1) without further expense to the vehicle owner or
operator; and
(2) to another location on the university campus.
(h) The university must notify the owner or operator of a
vehicle towed under Subsection (b) of the right of the vehicle owner
or operator to a hearing under Subchapter J.
SECTION 14.011. The heading to Subchapter I, Chapter 2308,
Occupations Code, is amended to read as follows:
SUBCHAPTER I. REGULATION OF TOWING COMPANIES[, BOOTING COMPANIES,]
AND PARKING FACILITY OWNERS
SECTION 14.012. (a) The following provisions of the
Occupations Code are repealed:
(1) Section 2308.002(9); and
(2) Section 2308.103(d).
(b) Effective September 1, 2018, Sections 2308.1555 and
2308.1556, Occupations Code, are repealed.
SECTION 14.013. (a) On September 1, 2018, a license issued
under former Section 2308.1555 or 2308.1556, Occupations Code,
expires.
(b) The changes in law made by this article to Section
2308.051(a), Occupations Code, regarding the qualifications for a
member of the Towing and Storage Advisory Board do not affect the
entitlement of a member serving on the board immediately before the
effective date of this article to continue to serve and function as
a member of the board for the remainder of the member's term. When
board vacancies occur on or after the effective date of this
article, the presiding officer of the Texas Commission of Licensing
and Regulation shall appoint new members to the board in a manner
that reflects the changes in law made by this article.
(c) The changes in law made by this article to Section
2308.255, Occupations Code, do not apply to the booting of a vehicle
pursuant to a standing written agreement between a booting company
and a parking facility owner entered into before the effective date
of this article. The booting of a vehicle pursuant to a standing
written agreement entered into before the effective date of this
article is governed by the law as it existed immediately before the
effective date of this article, and that law is continued in effect
for that purpose.
SECTION 14.014. Except as otherwise provided by this
article, this article takes effect immediately if this Act receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
article takes effect September 1, 2017.
ARTICLE 15. CERTAIN LOCAL TRANSPORTATION ENTITIES AND CONTRACTS
SECTION 15.001. (a) This article applies only to a county
board of education, board of county trustees, or office of county
school superintendent that provides transportation services in a
county with a population of 2.2 million or more.
(b) If on the effective date of this Act there is an existing
contract for transportation services to which a county board of
education, board of county trustees, or office of county school
superintendent is a party, it shall be wound down in the manner
described by Subsections (c)-(r) of this section.
(c) Each county board of education, board of county school
trustees, and office of county school superintendent in a county
with a population of 2.2 million or more and that is adjacent to a
county with a population of more than 800,000 is abolished
effective November 15, 2017, unless the continuation of the county
board of education, board of county school trustees, and office of
county school superintendent is approved by a majority of voters at
an election held on the November 2017 uniform election date in the
county in which the county board of education, board of county
school trustees, and office of county school superintendent are
located. Subsections (d)-(s) of this section do not take effect in
a county if the continuation of the county board of education, board
of county school trustees, and office of county school
superintendent is approved at the election held in the county under
this subsection.
(d) Not later than November 15, 2017, a dissolution
committee shall be formed for each county board of education or
board of county school trustees to be abolished as provided by
Subsection (c) of this section. The dissolution committee is
responsible for all financial decisions for each county board of
education or board of county school trustees abolished by this Act,
including asset distribution and payment of all debt obligations.
(e) A dissolution committee required by this Act shall be
appointed by the comptroller and include:
(1) one financial advisor;
(2) the superintendent of the participating component
school district with the largest number of students in average
daily attendance or the superintendent's designee;
(3) one certified public accountant;
(4) one auditor who holds a license or other
professional credential; and
(5) one bond counsel who holds a license or other
professional credential.
(f) A dissolution committee created under this Act is
subject to the open meetings requirements under Chapter 551,
Government Code, and public information requirements under Chapter
552, Government Code.
(g) Members of a dissolution committee may not receive
compensation but are entitled to reimbursement for actual and
necessary expenses incurred in performing the functions of the
dissolution committee.
(h) Subject to the other requirements of this Act, the
dissolution committee shall determine the manner in which all
assets, liabilities, contracts, and services of the county board of
education or board of county school trustees abolished by this Act
are divided, transferred, or discontinued. The dissolution
committee shall create a sinking fund to deposit all money received
in the abolishment of each county board of education or board of
county school trustees for the payment of all debts of the county
board of education or board of county school trustees.
(i) The dissolution committee shall continue providing
transportation services to participating component school
districts for the 2017-2018 school year. The dissolution committee
shall maintain current operations and personnel needed to provide
the transportation services.
(j) At the end of the 2017-2018 school year all school
buses, vehicles, and bus service centers shall be transferred to
participating component school districts in proportionate shares
equal to the proportion that the membership in each district bears
to total membership in the county as of September 1, 2018, at no
cost to the districts.
(k) The dissolution committee may employ for the 2017-2018
school year one person to assist in the abolishment of the county
board of education or board of county school trustees.
(l) On November 15, 2017, the participating component
school district with the largest number of students in average
daily attendance has the right of first refusal to buy, at fair
market value, the administrative building of the county board of
education or board of county school trustees.
(m) An ad valorem tax assessed by a county board of
education or board of county school trustees shall continue to be
assessed by the county on behalf of the board for the purpose of
paying the principal of and interest on any bonds issued by the
county board of education or board of county school trustees until
all bonds are paid in full. This subsection applies only to a bond
issued before the effective date of this Act for which the tax
receipts were obligated. On payment of all bonds issued by the
county board of education or board of county school trustees the ad
valorem tax may not be assessed.
(n) In the manner provided by rule of the commissioner of
education, the county shall collect and use any delinquent taxes
imposed by or on behalf of the county board of education or board of
county school trustees.
(o) The dissolution committee shall distribute the assets
remaining after discharge of the liabilities of the county board of
education or board of county school trustees to the component
school districts in the county in proportionate shares equal to the
proportion that the membership in each district bears to total
membership in the county as of September 1, 2017. The dissolution
committee shall liquidate board assets as necessary to discharge
board liabilities and facilitate the distribution of assets. A
person authorized by the dissolution committee shall execute any
documents necessary to complete the transfer of assets,
liabilities, or contracts.
(p) The dissolution committee shall encourage the component
school districts to:
(1) continue sharing services received through the
county board of education or board of county school trustees; and
(2) give preference to private sector contractors to
continue services provided by the county board of education or
board of county school trustees.
(q) The chief financial officer and financial advisor for
the county board of education or board of county school trustees
shall provide assistance to the dissolution committee in abolishing
the county board of education or board of county school trustees.
(r) The Texas Education Agency shall provide assistance to a
dissolution committee in the distribution of assets, liabilities,
contracts, and services of a county board of education or board of
county school trustees abolished by this Act.
(s) Any dissolution committee created as provided by this
Act is abolished on the date all debt obligations of the county
board of education or board of county school trustees are paid in
full and all assets distributed to component school districts.
SECTION 15.002. Chapter 266 (S.B. 394), Acts of the 40th
Legislature, Regular Session, 1927 (Article 2700a, Vernon's Texas
Civil Statutes), is repealed.
ARTICLE 16. REGISTRATION OF MARKS
SECTION 16.001. Section 16.051(a), Business & Commerce
Code, is amended to read as follows:
(a) A mark that distinguishes an applicant's goods or
services from those of others is registrable unless the mark:
(1) consists of or comprises matter that is immoral,
deceptive, or scandalous;
(2) consists of or comprises matter that may
disparage, falsely suggest a connection with, or bring into
contempt or disrepute:
(A) a person, whether living or dead;
(B) an institution;
(C) a belief; or
(D) a national symbol;
(3) depicts, comprises, or simulates the flag, the
coat of arms, the seal, the geographic outline, or other insignia
of:
(A) the United States;
(B) a state;
(C) a municipality; or
(D) a foreign nation;
(4) consists of or comprises the name, signature, or
portrait of a particular living individual who has not consented in
writing to the mark's registration;
(5) when used on or in connection with the applicant's
goods or services:
(A) is merely descriptive or deceptively
misdescriptive of the applicant's goods or services; or
(B) is primarily geographically descriptive or
deceptively misdescriptive of the applicant's goods or services;
(6) is primarily merely a surname; or
(7) is likely to cause confusion or mistake, or to
deceive, because, when used on or in connection with the
applicant's goods or services, it resembles:
(A) a mark registered in this state; or
(B) an unabandoned mark registered with the
United States Patent and Trademark Office.
ARTICLE 17. CONFLICT OF LAW; EFFECTIVE DATE
SECTION 17.001. To the extent of any conflict, this Act
prevails over another Act of the 85th Legislature, Regular Session,
2017, relating to nonsubstantive additions to and corrections in
enacted codes.
SECTION 17.002. To the extent of any conflict, Sections
1601.353 and 1602.303, Occupations Code, as amended by this Act,
prevail over another Act of the 85th Legislature, Regular Session,
2017.
SECTION 17.003. It is the intent of the 85th Legislature,
Regular Session, 2017, that the amendments made by this Act to
Section 17.46(b), Business & Commerce Code, be harmonized as
provided by Section 311.025(b), Government Code, as if the
amendments were enacted without reference to each other.
SECTION 17.004. Except as otherwise provided by this Act,
this Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2065 passed the Senate on
April 24, 2017, by the following vote: Yeas 30, Nays 0;
May 25, 2017, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 26, 2017, House
granted request of the Senate; May 28, 2017, Senate adopted
Conference Committee Report by the following vote: Yeas 30,
Nays 1.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2065 passed the House, with
amendments, on May 23, 2017, by the following vote: Yeas 131,
Nays 12, two present not voting; May 26, 2017, House granted
request of the Senate for appointment of Conference Committee;
May 28, 2017, House adopted Conference Committee Report by the
following vote: Yeas 145, Nays 0, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor