Texas 2021 - 87th Regular

Texas House Bill HB1560 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1560
	1	+	By: Goldman (Senate Sponsor - Buckingham) H.B. No. 1560
	2	+	(In the Senate - Received from the House May 3, 2021;
	3	+	May 10, 2021, read first time and referred to Committee on Business &
	4	+	Commerce; May 21, 2021, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 9, Nays 0;
	6	+	May 21, 2021, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 1560 By: Paxton
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the continuation and functions of the Texas Department
6	14		of Licensing and Regulation.
7	15		ARTICLE 1. GENERAL POWERS AND DUTIES
8	16		SECTION 1.01. Section 51.002, Occupations Code, is amended
9	17		to read as follows:
10	18		Sec. 51.002. APPLICATION OF SUNSET ACT. [(a)] The Texas
11	19		Commission of Licensing and Regulation and the Texas Department of
12	20		Licensing and Regulation are subject to Chapter 325, Government
13	21		Code (Texas Sunset Act). Unless continued in existence as provided
14	22		by that chapter, the commission and the department are abolished
15	23		September 1, 2033 [2021].
16	24		[(b) The review of the commission and department by the
17	25		Sunset Advisory Commission under this section may not include a
18	26		review of any program that was transferred to the department on or
19	27		after September 1, 2016.]
20		-	SECTION 1.02. Section 51.053, Occupations Code, is amended
21		-	by adding Subsection (c) to read as follows:
22		-	(c) Notwithstanding any other law, a person may be a member
23		-	of the commission if the person or the person's spouse is
24		-	registered, certified, or licensed by a regulatory agency in the
25		-	field of health care.
26		-	SECTION 1.03. Section 51.054, Occupations Code, is amended
	28	+	SECTION 1.02. Section 51.054, Occupations Code, is amended
27	29		by amending Subsection (b) and adding Subsection (d) to read as
28	30		follows:
29	31		(b) The training program must provide the person with
30	32		information regarding:
31	33		(1) the law governing [legislation that created the]
32	34		department operations [and the commission];
33	35		(2) the programs, functions, rules, and budget of
34	36		[operated by] the department;
35	37		(3) the scope of and limitations on the rulemaking
36	38		authority of the commission [role and functions of the department];
37	39		(4) [the rules of the department, with an emphasis on
38	40		the rules that relate to disciplinary and investigatory authority;
39	41		[(5) the current budget for the department;
40	42		[(6)] the results of the most recent formal audit of
41	43		the department;
42	44		(5) [(7)] the requirements of:
43	45		(A) laws relating to [the] open meetings, [law,
44	46		Chapter 551, Government Code;
45	47		[(B) the] public information, [law, Chapter 552,
46	48		Government Code;
47	49		[(C) the] administrative procedure, and
48	50		disclosing conflicts of interest [law, Chapter 2001, Government
49	51		Code]; and
50	52		(B) [(D)] other laws applicable to members of a
51	53		state policy-making body in performing their duties [relating to
52	54		public officials, including conflict-of-interest laws]; and
53	55		(6) [(8)] any applicable ethics policies adopted by
54	56		the department or the Texas Ethics Commission.
55	57		(d) The executive director of the department shall create a
56	58		training manual that includes the information required by
57	59		Subsection (b). The executive director shall distribute a copy of
58	60		the training manual annually to each member of the commission. Each
59	61		member of the commission shall sign and submit to the executive
60	62		director a statement acknowledging that the member received and has
61	63		reviewed the training manual.
62		-	SECTION 1.04. Section 51.209, Occupations Code, is amended
	64	+	SECTION 1.03. Section 51.209, Occupations Code, is amended
63	65		by adding Subsections (a-1) and (a-2) to read as follows:
64	66		(a-1) An advisory board shall meet at the call of the
65	67		executive director or the presiding officer of the commission.
66	68		(a-2) An advisory board may meet by telephone conference
67	69		call, videoconference, or other similar telecommunication method,
68	70		provided that each portion of the meeting that is required to be
69	71		open to the public shall be audible to the public and, in the case of
70	72		a meeting held by videoconference, visible to the public. If a
71	73		problem occurs that causes a meeting to no longer be visible or
72	74		audible to the public as required under this subsection, the
73	75		meeting must be recessed until the problem is resolved. If the
74	76		problem is not resolved in six hours or less, the meeting must be
75	77		adjourned. The face of each participant in a meeting held by
76	78		videoconference, while that participant is speaking, must be
77	79		clearly visible, and the participant's voice must be audible, to
78	80		each other participant and, during the open portion of the meeting,
79	81		to the members of the public. A meeting held by telephone
80	82		conference call, videoconference, or other similar
81	83		telecommunication method is not subject to the requirements of
82	84		Sections 551.127(a-3), (b), (c), (e), (f), (h), (i), and (j),
83	85		Government Code.
84		-	SECTION 1.05. Subchapter D, Chapter 51, Occupations Code,
	86	+	SECTION 1.04. Subchapter D, Chapter 51, Occupations Code,
85	87		is amended by adding Sections 51.2095 and 51.211 to read as follows:
86	88		Sec. 51.2095. INTERDISCIPLINARY ADVISORY BOARDS. The
87	89		executive director or the presiding officer of the commission may
88	90		appoint interdisciplinary advisory boards consisting of members
89	91		from various businesses, industries, general trades, or
90	92		occupations to provide expertise related to a program regulated by
91	93		the department.
92	94		Sec. 51.211. RISK-BASED INSPECTIONS. (a) The department
93	95		shall conduct risk-based inspections that prioritize inspections
94	96		based on key risk factors identified by the department, including:
95	97		(1) whether a license holder has previously violated a
96	98		law establishing a regulatory program administered by the
97	99		department or a rule or order of the commission or executive
98	100		director; and
99	101		(2) the number of violations committed by a license
100	102		holder.
101	103		(b) The department may use alternative inspection methods,
102	104		including the use of videoconference technology or other methods
103	105		instead of conducting an in-person inspection, in circumstances the
104	106		department considers appropriate.
105		-	SECTION 1.06. Section 51.251, Occupations Code, is amended
	107	+	SECTION 1.05. Section 51.251, Occupations Code, is amended
106	108		by adding Subsection (c) to read as follows:
107	109		(c) The executive director shall establish methods by which
108	110		consumers and service recipients are notified of the name, mailing
109	111		address, and telephone number of the department for the purpose of
110	112		directing complaints to the department.
111		-	SECTION 1.07. Section 51.252, Occupations Code, is amended
	113	+	SECTION 1.06. Section 51.252, Occupations Code, is amended
112	114		by amending Subsections (a) and (c) and adding Subsection (b-2) to
113	115		read as follows:
114	116		(a) The department shall maintain a system to promptly and
115	117		efficiently act on complaints filed with the department. The
116	118		department shall maintain information about parties to the
117	119		complaint, the subject matter of the complaint, a summary of the
118	120		results of the review or investigation of the complaint, and its
119	121		disposition [The executive director shall establish methods by
120	122		which consumers and service recipients are notified of the name,
121	123		mailing address, and telephone number of the department for the
122	124		purpose of directing complaints to the department. The department
123	125		shall provide to the person filing the complaint and to each person
124	126		who is a subject of the complaint information about the
125	127		department's policies and procedures relating to complaint
126	128		investigation and resolution].
127	129		(b-2) The department shall make information available
128	130		describing its procedures for complaint investigation and
129	131		resolution.
130	132		(c) The department [, at least quarterly and until final
131	133		disposition of the complaint,] shall periodically notify the
132	134		[person filing the] complaint parties [and each person who is a
133	135		subject of the complaint] of the status of the complaint until final
134	136		disposition [investigation] unless the notice would jeopardize an
135	137		[undercover] investigation.
136		-	SECTION 1.08. Subchapter E, Chapter 51, Occupations Code,
	138	+	SECTION 1.07. Subchapter E, Chapter 51, Occupations Code,
137	139		is amended by adding Sections 51.2521 and 51.255 to read as follows:
138	140		Sec. 51.2521. COMPLAINT INVESTIGATION. (a) The department
139	141		shall assign priorities and investigate complaints based on risk to
140	142		the public of the conduct alleged in the complaint.
141	143		(b) If the department determines at any time that an
142	144		allegation made or formal complaint submitted by a person is
143	145		inappropriate or without merit, the department shall dismiss the
144	146		complaint.
145	147		Sec. 51.255. STATISTICAL ANALYSIS OF COMPLAINTS. (a) The
146	148		department shall make available on the department's Internet
147	149		website a statistical analysis of the complaints received by the
148	150		department.
149	151		(b) The analysis under this section must include aggregate
150	152		information on the number, source, type, and disposition of
151	153		complaints received during the preceding state fiscal year and must
152	154		include, as applicable, the following information for each program
153	155		regulated by the department:
154	156		(1) the number of license holders;
155	157		(2) the number of complaints received against license
156	158		holders;
157	159		(3) the number of complaints resolved and the manner
158	160		in which they were resolved, including:
159	161		(A) the number of complaints dismissed and the
160	162		reasons for dismissal;
161	163		(B) the number of contested cases referred to and
162	164		heard by the State Office of Administrative Hearings;
163	165		(C) the number of cases appealed to a district
164	166		court;
165	167		(D) the number of complaints resulting in
166	168		disciplinary action, the disciplinary action taken, and whether the
167	169		disciplinary action was imposed by an agreed settlement or default
168	170		order issued by the executive director or a final order issued by
169	171		the commission;
170	172		(E) a breakdown of the nature of the alleged
171	173		violations in:
172	174		(i) complaints opened for investigation;
173	175		and
174	176		(ii) cases that resulted in disciplinary
175	177		action; and
176	178		(F) the number of complaints resolved,
177	179		categorized by whether the complaint originated from department
178	180		staff or from the public;
179	181		(4) the average time required to resolve a complaint;
180	182		(5) the average amount of administrative penalties
181	183		assessed; and
182	184		(6) the number and amount of refunds ordered by the
183	185		commission or executive director or obtained through an informal
184	186		resolution.
185		-	SECTION 1.09. Section 51.351, Occupations Code, is amended
	187	+	SECTION 1.08. Section 51.351, Occupations Code, is amended
186	188		by adding Subsection (e) to read as follows:
187	189		(e) The department may take action under Section 51.353 for
188	190		a violation identified during an inspection.
189		-	SECTION 1.10. Subchapter G, Chapter 51, Occupations Code,
	191	+	SECTION 1.09. Subchapter G, Chapter 51, Occupations Code,
190	192		is amended by adding Section 51.359 to read as follows:
191	193		Sec. 51.359. REFUND. (a) Subject to Subsection (b), the
192	194		commission or executive director may order a license holder to pay a
193	195		refund to a consumer as provided in an agreed settlement, default
194	196		order, or commission order instead of or in addition to imposing an
195	197		administrative penalty or sanction.
196	198		(b) The amount of a refund ordered may not exceed the amount
197	199		the consumer paid to the license holder for a service regulated by
198	200		the department. The commission or executive director may not
199	201		require payment of other damages or estimate harm in a refund order.
200		-	SECTION 1.11. Section 51.4012(a), Occupations Code, is
	202	+	SECTION 1.10. Section 51.4012(a), Occupations Code, is
201	203		amended to read as follows:
202	204		(a) Notwithstanding any other law, the commission may
203	205		determine that a person is not eligible for a license based on the
204	206		person's criminal history [or other information that indicates that
205	207		the person lacks the honesty, trustworthiness, and integrity to
206	208		hold a license issued by the department].
207		-	SECTION 1.12. Section 51.405, Occupations Code, is amended
	209	+	SECTION 1.11. Section 51.405, Occupations Code, is amended
208	210		to read as follows:
209	211		Sec. 51.405. CONTINUING EDUCATION. (a) The department
210	212		[commission] shall recognize, prepare, or administer continuing
211	213		education programs for license holders. A license holder must
212	214		participate in the programs to the extent required by the
213	215		commission to keep the person's license.
214	216		(b) Notwithstanding other law, the commission by rule may:
215	217		(1) establish a minimum number of hours of continuing
216	218		education required for license renewal;
217	219		(2) provide for the registration and renewal of
218	220		continuing education providers and the approval of continuing
219	221		education courses; and
220	222		(3) assess reasonable and necessary fees on continuing
221	223		education providers.
222	224		(c) In adopting rules under this section for a program
223	225		regulated by the department, the commission shall consult, if
224	226		applicable, with the advisory board established for the program.
225		-	SECTION 1.13. Subchapter H, Chapter 51, Occupations Code,
	227	+	SECTION 1.12. Subchapter H, Chapter 51, Occupations Code,
226	228		is amended by adding Section 51.409 to read as follows:
227	229		Sec. 51.409. FINANCIAL DISCLOSURE STATEMENT. (a) The
228	230		commission by rule may require a person, other than an individual,
229	231		applying for a license issued by the department to submit with the
230	232		license application a financial disclosure statement. The rules
231	233		may require any of the following information to be disclosed based
232	234		on the type of license for which the application is submitted:
233	235		(1) the name of the applicable business entity;
234	236		(2) the name of each person who has a direct financial
235	237		investment in the business;
236	238		(3) the name of each person, other than an individual,
237	239		who:
238	240		(A) has a financial investment in the business;
239	241		and
240	242		(B) is not otherwise disclosed under Subdivision
241	243		(2);
242	244		(4) the total amount or percentage of the financial
243	245		investment made by each person described by Subdivision (2); and
244	246		(5) the name of each of the following persons
245	247		associated with the business, if the person is not otherwise
246	248		disclosed under Subdivision (2) or (3):
247	249		(A) a partner;
248	250		(B) an officer;
249	251		(C) a director;
250	252		(D) a managing employee;
251	253		(E) an owner or person who controls the owner;
252	254		and
253	255		(F) a person who acts as a controlling person of
254	256		the business through the exercise of direct or indirect influence
255	257		or control over the management of the business, the expenditure of
256	258		money by the business, or a policy of the business, including:
257	259		(i) any management company, landlord,
258	260		marketing company, or similar person who operates or contracts for
259	261		the operation of the business and, if the business is a publicly
260	262		traded corporation or is controlled by a publicly traded
261	263		corporation, any officer or director of the corporation;
262	264		(ii) an individual who has a personal,
263	265		familial, or other relationship with an owner, manager, landlord,
264	266		tenant, or provider of a business that allows the individual to
265	267		exercise actual control of the business; and
266	268		(iii) any other person the commission by
267	269		rule requires to be included based on the person's exercise of
268	270		direct or indirect influence or control other than a shareholder or
269	271		lender of the corporation.
270	272		(b) The department may deny an application for the issuance
271	273		or renewal of a license or may suspend or revoke a license on the
272	274		grounds that an applicant or license holder:
273	275		(1) fails to disclose a relationship for which
274	276		disclosure is required by rules adopted under this section; or
275	277		(2) discloses a relationship for which disclosure is
276	278		required by rules adopted under this section with a person whose
277	279		license was revoked or who has failed to comply with an order of the
278	280		commission or executive director.
279		-	SECTION 1.14. Section 202.505, Occupations Code, is amended
	281	+	SECTION 1.13. Section 202.505, Occupations Code, is amended
280	282		to read as follows:
281	283		Sec. 202.505. REEXAMINATION IF LICENSE SUSPENDED OR
282	284		REVOKED. The department may refuse to reinstate a license or to
283	285		issue a new license until a podiatrist has passed the regular
284	286		license examination if the commission or executive director
285	287		suspended or revoked the license for:
286	288		(1) failure to satisfy continuing education
287	289		requirements [under Section 202.305]; or
288	290		(2) nonpayment of the license renewal fee.
289		-	SECTION 1.15. Section 402.207(c), Occupations Code, is
	291	+	SECTION 1.14. Section 402.207(c), Occupations Code, is
290	292		amended to read as follows:
291	293		(c) An apprentice permit holder shall work under the
292	294		supervision of a license holder for at least one year. [During the
293	295		apprentice year, the apprentice permit holder shall complete 20
294	296		hours of classroom continuing education as required by Section
295	297		402.303 for a license holder.]
296		-	SECTION 1.16. Section 402.305, Occupations Code, is amended
	298	+	SECTION 1.15. Section 402.305, Occupations Code, is amended
297	299		to read as follows:
298	300		Sec. 402.305. CONTINUING EDUCATION EXEMPTIONS. The
299	301		department may renew the license of a license holder who does not
300	302		comply with the applicable continuing education requirements [of
301	303		Section 402.303 or 402.304] if the license holder:
302	304		(1) was licensed for the first time during the 24
303	305		months before the reporting date; or
304	306		(2) submits proof from an attending physician that the
305	307		license holder suffered a serious or disabling illness or physical
306	308		disability that prevented compliance with the continuing education
307	309		requirements during the 24 months before the reporting date.
308		-	SECTION 1.17. Section 802.062(b), Occupations Code, is
	310	+	SECTION 1.16. Section 802.062(b), Occupations Code, is
309	311		amended to read as follows:
310	312		(b) An [The] inspection by the department must be conducted
311	313		during the facility's normal business hours, and the licensed
312	314		breeder or a representative of the licensed breeder must be given a
313	315		reasonable opportunity to be present during the inspection.
314		-	SECTION 1.18. Section 1151.1581, Occupations Code, is
	316	+	SECTION 1.17. Section 1151.1581, Occupations Code, is
315	317		amended to read as follows:
316	318		Sec. 1151.1581. CONTINUING EDUCATION. (a) [The commission
317	319		shall recognize, prepare, or administer continuing education
318	320		programs for registrants under this chapter.
319	321		[(b)] The comptroller must review and approve any [all]
320	322		continuing education programs for registrants.
321	323		(b) [(c) A registrant must participate in the programs to
322	324		the extent required by the department to keep the person's
323	325		certificate of registration.
324	326		[(d) The commission may set fees for continuing education
325	327		courses and providers of continuing education courses in amounts
326	328		reasonable and necessary to cover the department's costs in
327	329		administering the department's duties under this section.
328	330		[(e)] The comptroller may set fees for any continuing
329	331		education courses and providers of continuing education courses in
330	332		amounts reasonable and necessary to cover the comptroller's costs
331	333		in administering the comptroller's duties under this section.
332		-	~~(c)~~ [(f)] As part of the continuing education requirements
333		-	~~for a~~ registered professional appraiser who is the chief appraiser
334		-	~~of an~~ appraisal district, the commission by rule shall require the
	334	+	[(f) As part of the continuing education requirements for a
	335	+	registered professional appraiser who is the chief appraiser of an
	336	+	appraisal district, the commission by rule shall require the
335	337		registrant to complete:
336		-	(1) at least half of the required hours in a program
	338	+	[(1) at least half of the required hours in a program
337	339		devoted to one or more of the topics listed in Section 1151.164(b);
338	340		and
339		-	(2) at least two of the required hours in a program of
	341	+	[(2) at least two of the required hours in a program of
340	342		professional ethics specific to the chief appraiser of an appraisal
341	343		district, including a program on the importance of maintaining the
342		-	independence of an appraisal office from political pressure.
343		-	SECTION 1.19. Section 1152.106, Occupations Code, is
	344	+	independence of an appraisal office from political pressure.]
	345	+	SECTION 1.18. Section 1152.106, Occupations Code, is
344	346		amended to read as follows:
345	347		Sec. 1152.106. [MEETINGS;] VOTE REQUIRED FOR ACTION. [(a)
346	348		The council shall meet at least semiannually at the call of the
347	349		presiding officer or at the call of a majority of its members.
348	350		[(b)] A decision of the council is not effective unless it
349	351		receives the affirmative vote of at least four members.
350		-	SECTION 1.20. Section 1953.106, Occupations Code, is
	352	+	SECTION 1.19. Section 1953.106, Occupations Code, is
351	353		amended to read as follows:
352	354		Sec. 1953.106. RENEWAL OF CERTIFICATE. [(a)] To renew a
353	355		certificate of registration under this chapter, a professional
354	356		sanitarian must:
355	357		(1) pay to the department a renewal fee prescribed by
356	358		the commission by rule; and
357	359		(2) provide proof of completion of any applicable
358	360		continuing education requirements prescribed by the commission by
359	361		rule.
360		-	SECTION 1.21. Section 1958.104, Occupations Code, is
	362	+	SECTION 1.20. Section 1958.104, Occupations Code, is
361	363		amended to read as follows:
362	364		Sec. 1958.104. RULES REGARDING LICENSE APPLICATION. The
363	365		commission shall adopt rules regarding a license application. The
364	366		commission shall adopt rules that establish minimum requirements
365	367		for a license, including:
366	368		(1) the type of license;
367	369		(2) the qualifications for the license, including any
368	370		previous training required under Section 1958.106;
369	371		(3) renewal requirements for the license[, including
370	372		ongoing continuing education required under Section 1958.106]; and
371	373		(4) liability insurance requirements for the license.
372		-	SECTION 1.22. Section 1958.106, Occupations Code, is
	374	+	SECTION 1.21. Section 1958.106, Occupations Code, is
373	375		amended to read as follows:
374	376		Sec. 1958.106. TRAINING [; CONTINUING EDUCATION]. (a) The
375	377		commission shall adopt rules regarding training required under this
376	378		chapter [and continuing education required for a license holder
377	379		under this chapter].
378	380		(b) The rules may include requirements regarding training
379	381		[and continuing education] providers, including rules
380	382		establishing:
381	383		(1) accreditation by the department;
382	384		(2) curriculum requirements; and
383	385		(3) qualifications.
384		-	SECTION 1.23. Section 2308.157, Occupations Code, is
	386	+	SECTION 1.22. Section 2308.157, Occupations Code, is
385	387		amended to read as follows:
386	388		Sec. 2308.157. REQUIREMENT FOR INITIAL RENEWAL OF INCIDENT
387	389		MANAGEMENT TOWING OPERATOR'S LICENSE [CONTINUING EDUCATION]. [(a)
388	390		The commission by rule shall recognize, prepare, or administer
389	391		continuing education programs for license holders. Except as
390	392		provided by Subsection (c), each license holder must complete a
391	393		continuing education program before the license holder may renew
392	394		the license holder's license.
393	395		[(b) A person recognized by the commission to offer a
394	396		continuing education program must:
395	397		[(1) register with the department; and
396	398		[(2) comply with rules adopted by the commission
397	399		relating to continuing education.
398	400		[(c)] To renew an incident management towing operator's
399	401		license the first time, a license holder must complete a
400	402		professional development course relating to incident management
401	403		towing that is approved and administered by the department [under
402	404		this section].
403		-	SECTION 1.24. Section 2308.159(c), Occupations Code, is
	405	+	SECTION 1.23. Section 2308.159(c), Occupations Code, is
404	406		amended to read as follows:
405	407		(c) A license holder may renew a license issued under this
406	408		chapter by:
407	409		(1) submitting an application on a form prescribed by
408	410		the executive director;
409	411		(2) submitting evidence demonstrating compliance with
410	412		the requirements for the license type as required by this chapter or
411	413		commission rule;
412	414		(3) paying a renewal fee; and
413	415		(4) completing any applicable continuing education
414	416		requirements [as required by Section 2308.157].
415		-	SECTION 1.25. The following provisions are repealed:
	417	+	SECTION 1.24. The following provisions are repealed:
416	418		(1) Section 1001.058(h), Education Code;
417	419		(2) Section 469.053(e), Government Code;
418	420		(3) Section 754.012(d), Health and Safety Code;
419	421		(4) Section 754.0174, Health and Safety Code;
420	422		(5) Section 755.016, Health and Safety Code;
421	423		(6) Section 51.0021, Occupations Code;
422	424		(7) Section 51.252(d), Occupations Code;
423	425		(8) Section 202.305, Occupations Code;
424	426		(9) Section 202.5085, Occupations Code;
425	427		(10) Section 203.304, Occupations Code;
426	428		(11) Section 203.406, Occupations Code;
427	429		(12) Section 401.355, Occupations Code;
428	430		(13) Section 402.303, Occupations Code;
429	431		(14) Section 403.152, Occupations Code;
430	432		(15) Section 455.0571, Occupations Code;
431	433		(16) Section 506.105, Occupations Code;
432	434		(17) Section 605.261, Occupations Code;
433	435		(18) Section 701.303, Occupations Code;
434	436		(19) Section 701.512, Occupations Code;
435		-	(20) Section 802.065(e), Occupations Code;
436		-	(21) Section 1302.208(a), Occupations Code;
437		-	(22) Section 1305.055, Occupations Code;
438		-	(23) Section 1305.168, Occupations Code;
439		-	(24) Section 1901.107(a), Occupations Code;
440		-	(25) Section 1952.1051, Occupations Code;
441		-	(26) Section 1958.056(b), Occupations Code;
442		-	(27) Section 2303.056(b), Occupations Code;
443		-	(28) Section 2308.055, Occupations Code;
444		-	(29) Section 2309.056, Occupations Code; and
445		-	(30) Section 2309.106(a), Occupations Code.
446		-	SECTION 1.26. (a) Except as provided by Subsection (b) of
	437	+	(20) Section 802.062(a), Occupations Code;
	438	+	(21) Section 802.065(e), Occupations Code;
	439	+	(22) Section 1152.204, Occupations Code;
	440	+	(23) Section 1302.208(a), Occupations Code;
	441	+	(24) Section 1305.055, Occupations Code;
	442	+	(25) Section 1305.168, Occupations Code;
	443	+	(26) Section 1901.107(a), Occupations Code;
	444	+	(27) Section 1952.1051, Occupations Code;
	445	+	(28) Section 1958.056(b), Occupations Code;
	446	+	(29) Section 2303.056(b), Occupations Code;
	447	+	(30) Section 2308.055, Occupations Code;
	448	+	(31) Section 2309.056, Occupations Code; and
	449	+	(32) Section 2309.106(a), Occupations Code.
	450	+	SECTION 1.25. (a) Except as provided by Subsection (b) of
447	451		this section, Section 51.054, Occupations Code, as amended by this
448	452		article, applies to a member of the Texas Commission of Licensing
449		-	and Regulation appointed before, on, or after the effective date of
450		-	this Act.
	453	+	and Regulation appointed before, on, or after September 1, 2021.
451	454		(b) A member of the Texas Commission of Licensing and
452		-	Regulation who, before ~~the effective date of this Act~~, completed
453		-	~~the training~~ program required by Section 51.054, Occupations Code,
454		-	~~as that law~~ existed before ~~the effective date of this Act~~, is only
455		-	~~required to complete~~ additional training on the subjects added by
456		-	~~this article to the~~ training program required by Section 51.054,
457		-	~~Occupations Code. A~~ member described by this subsection may not
458		-	~~vote, deliberate, or be~~ counted as a member in attendance at a
459		-	~~meeting of the commission~~ held on or after December 1, 2021, until
460		-	~~the member completes the~~ additional training.
	455	+	Regulation who, before September 1, 2021, completed the training
	456	+	program required by Section 51.054, Occupations Code, as that law
	457	+	existed before September 1, 2021, is only required to complete
	458	+	additional training on the subjects added by this article to the
	459	+	training program required by Section 51.054, Occupations Code. A
	460	+	member described by this subsection may not vote, deliberate, or be
	461	+	counted as a member in attendance at a meeting of the commission
	462	+	held on or after December 1, 2021, until the member completes the
	463	+	additional training.
461	464		ARTICLE 2. DEREGULATION
462	465		SECTION 2.01. The following provisions of the Occupations
463	466		Code are repealed:
464	467		(1) Chapter 1703; and
465	468		(2) Section 2052.002(11-a).
466	469		SECTION 2.02. Section 54.0405(d), Family Code, is amended
467	470		to read as follows:
468	471		(d) A polygraph examination required as a condition of
469	472		probation under Subsection (a) must be administered by an
470	473		individual who is [:
471	474		[(1)] specified by the local juvenile probation
472	475		department supervising the child [; and
473	476		[(2) licensed as a polygraph examiner under Chapter
474	477		1703, Occupations Code].
475	478		SECTION 2.03. Sections 411.0074(c) and (d), Government
476	479		Code, are amended to read as follows:
477	480		(c) The polygraph examination required by this section may
478	481		only be administered by a polygraph examiner [licensed under
479	482		Chapter 1703, Occupations Code,] who:
480	483		(1) is a peace officer commissioned by the department;
481	484		or
482	485		(2) has a minimum of two years of experience
483	486		conducting preemployment polygraph examinations for a law
484	487		enforcement agency.
485	488		(d) The department and the polygraph examiner shall
486	489		maintain the confidentiality of the results of a polygraph
487	490		examination administered under this section, except that [:
488	491		[(1) the department and the polygraph examiner may
489	492		disclose the results in accordance with Section 1703.306,
490	493		Occupations Code; and
491	494		[(2) notwithstanding Section 1703.306, Occupations
492	495		Code,] the department may disclose any admission of criminal
493	496		conduct made during the course of an examination to another
494	497		appropriate governmental entity.
495	498		SECTION 2.04. Section 245.053(d), Human Resources Code, is
496	499		amended to read as follows:
497	500		(d) A polygraph examination required as a condition of
498	501		release under Subsection (a) must be administered by an individual
499	502		who is [:
500	503		[(1)] specified by the department [; and
501	504		[(2) licensed as a polygraph examiner under Chapter
502	505		1703, Occupations Code].
503	506		SECTION 2.05. Section 2052.107, Occupations Code, is
504	507		amended to read as follows:
505	508		Sec. 2052.107. OTHER COMBATIVE SPORTS LICENSES. Unless a
506	509		person holds a license or registration issued under this chapter,
507	510		the person may not act as a combative sports:
508	511		(1) professional contestant;
509	512		(2) manager of a professional contestant;
510	513		(3) referee; or
511	514		(4) judge [;
512	515		[(5) second;
513	516		[(6) matchmaker; or
514	517		[(7) event coordinator].
515		-	SECTION 2.06. On the effective date of this Act, the
516		-	Polygraph Advisory Committee is abolished.
517		-	SECTION 2.07. On the effective date of this Act, a pending
518		-	regulatory action, including a complaint investigation,
519		-	disciplinary action, or administrative penalty proceeding, of the
520		-	Texas Department of Licensing and Regulation with respect to a
521		-	license, permit, or certification issued under a law repealed by
522		-	this article, is terminated.
523		-	SECTION 2.08. On the effective date of this Act, a license,
524		-	permit, or certification issued under a law repealed by this
525		-	article expires.
	518	+	SECTION 2.06. On September 1, 2021, the Polygraph Advisory
	519	+	Committee is abolished.
	520	+	SECTION 2.07. On September 1, 2021, a pending regulatory
	521	+	action, including a complaint investigation, disciplinary action,
	522	+	or administrative penalty proceeding, of the Texas Department of
	523	+	Licensing and Regulation with respect to a license, permit, or
	524	+	certification issued under a law repealed by this article, is
	525	+	terminated.
	526	+	SECTION 2.08. On September 1, 2021, a license, permit, or
	527	+	certification issued under a law repealed by this article expires.
526	528		SECTION 2.09. Not later than January 1, 2023, the Texas
527	529		Department of Licensing and Regulation, in consultation with the
528	530		Auctioneer Advisory Board, shall study the regulation of
529	531		auctioneering and prepare a report with any findings and
530	532		recommendations to improve public safety and the department's
531	533		processes and to eliminate inefficiencies, including any necessary
532	534		legislative changes. In conducting the study, the department may
533	535		consult with any interested organizations, associations, and
534	536		stakeholders. The department shall submit the report to the
535	537		standing legislative committees with jurisdiction over the
536	538		department.
537	539		ARTICLE 3. BARBERING AND COSMETOLOGY
538	540		SECTION 3.01. Section 1603.001, Occupations Code, is
539	541		amended to read as follows:
540	542		Sec. 1603.001. GENERAL DEFINITIONS. [(a)] In this
541	543		chapter:
542	544		(1) "Advisory board" means the Barbering and
543	545		Cosmetology Advisory Board.
544	546		(2) "Commission" means the Texas Commission of
545	547		Licensing and Regulation.
546	548		(3) [(2)] "Department" means the Texas Department of
547	549		Licensing and Regulation.
548	550		(4) "Establishment" means a place:
549	551		(A) in which barbering or cosmetology is
550	552		practiced; and
551	553		(B) that is required to hold a license issued
552	554		under Subchapter E-2.
553	555		(5) [(3)] "Executive director" means the executive
554	556		director of the department.
555	557		(6) "Manager" means the person who controls or directs
556	558		the business of an establishment or directs the work of a person
557	559		employed in an establishment.
558	560		(7) "School" means a public secondary school, public
559	561		postsecondary school, or private postsecondary school:
560	562		(A) in which barbering or cosmetology is taught;
561	563		and
562	564		(B) that is required to hold a license issued
563	565		under Subchapter E-3.
564	566		[(b) Unless the context clearly indicates otherwise, the
565	567		definitions in Chapters 1601 and 1602 apply to this chapter.]
566	568		SECTION 3.02. Subchapter A, Chapter 1603, Occupations Code,
567	569		is amended by adding Sections 1603.0011, 1603.0012, and 1603.0013
568	570		to read as follows:
569	571		Sec. 1603.0011. PRACTICE OF BARBERING OR COSMETOLOGY. (a)
570	572		The practices of barbering and cosmetology consist of performing or
571	573		offering to perform for compensation any of the following services:
572	574		(1) treating a person's hair by:
573	575		(A) providing any method of treatment as a
574	576		primary service, including arranging, beautifying, bleaching,
575	577		cleansing, coloring, cutting, dressing, dyeing, processing,
576	578		shaping, singeing, straightening, styling, tinting, or waving;
577	579		(B) providing a necessary service that is
578	580		preparatory or ancillary to a service under Paragraph (A),
579	581		including bobbing, clipping, cutting, or trimming a person's hair
580	582		or shaving a person's neck with a safety razor; or
581	583		(C) cutting the person's hair as a separate and
582	584		independent service for which a charge is directly or indirectly
583	585		made separately from charges for any other service;
584	586		(2) treating a person's mustache or beard by
585	587		arranging, beautifying, coloring, processing, styling, trimming,
586	588		or shaving with a safety razor;
587	589		(3) cleansing, stimulating, or massaging a person's
588	590		scalp, face, neck, shoulders, or arms:
589	591		(A) by hand or by using a device, apparatus, or
590	592		appliance; and
591	593		(B) with or without the use of any cosmetic
592	594		preparation, antiseptic, tonic, lotion, or cream;
593	595		(4) beautifying a person's face, neck, shoulders, or
594	596		arms using a cosmetic preparation, antiseptic, tonic, lotion,
595	597		powder, oil, clay, cream, or appliance;
596	598		(5) administering facial treatments;
597	599		(6) removing superfluous hair from a person's body
598	600		using depilatories, preparations or chemicals, tweezers, or other
599	601		devices or appliances of any kind or description;
600	602		(7) treating a person's nails by:
601	603		(A) cutting, trimming, polishing, tinting,
602	604		coloring, cleansing, manicuring, or pedicuring; or
603	605		(B) attaching false nails;
604	606		(8) massaging, cleansing, treating, or beautifying a
605	607		person's hands or feet; or
606	608		(9) weaving a person's hair by using any method to
607	609		attach commercial hair to a person's hair or scalp.
608	610		(b) In addition to the services described by Subsection (a),
609	611		the practice of barbering includes performing or offering to
610	612		perform for compensation the service of shaving a person's face,
611	613		neck, mustache, or beard with a razor of any type.
612	614		(c) In addition to the services described by Subsection (a),
613	615		the practice of cosmetology includes performing or offering to
614	616		perform for compensation the service of applying semipermanent,
615	617		thread-like extensions composed of single fibers to a person's
616	618		eyelashes.
617	619		(d) Advertising or representing to the public in any manner
618	620		that a person is licensed to perform a barbering or cosmetology
619	621		service under this chapter, or that a location or place of business
620	622		is an establishment or school, constitutes the practice of
621	623		barbering or cosmetology.
622	624		(e) In this section, "safety razor" means a razor that is
623	625		fitted with a guard close to the cutting edge of the razor that is
624	626		intended to:
625	627		(1) prevent the razor from cutting too deeply; and
626	628		(2) reduce the risk and incidence of accidental cuts.
627	629		Sec. 1603.0012. SERVICES NOT CONSTITUTING BARBERING OR
628	630		COSMETOLOGY. Barbering and cosmetology do not include:
629	631		(1) threading, which involves removing unwanted hair
630	632		from a person by using a piece of thread that is looped around the
631	633		hair and pulled to remove the hair and includes the incidental
632	634		trimming of eyebrow hair; or
633	635		(2) servicing a person's wig, toupee, or artificial
634	636		hairpiece on a person's head or on a block after the initial retail
635	637		sale in any manner described by Section 1603.0011(a)(1).
636	638		Sec. 1603.0013. APPLICATION OF CHAPTER. This chapter does
637	639		not apply to a person who:
638	640		(1) does not represent or advertise to the public
639	641		directly or indirectly that the person is authorized by the
640	642		department to practice barbering or cosmetology and the person is:
641	643		(A) licensed in this state to practice medicine,
642	644		dentistry, podiatry, chiropractic, or nursing and operating within
643	645		the scope of the person's license;
644	646		(B) a commissioned or authorized medical or
645	647		surgical officer of the United States armed forces; or
646	648		(C) an inmate in the institutional division of
647	649		the Texas Department of Criminal Justice who performs barbering or
648	650		cosmetology during the person's incarceration;
649	651		(2) provides a service in an emergency;
650	652		(3) is in the business of or receives compensation for
651	653		makeup applications only;
652	654		(4) provides a cosmetic service as a volunteer or an
653	655		employee performing regular duties at a licensed nursing or
654	656		convalescent custodial or personal care home to a patient residing
655	657		in the home;
656	658		(5) owns, operates, or manages a licensed nursing or
657	659		convalescent custodial or personal care home that allows a person
658	660		with an operator license to perform cosmetic services for patients
659	661		residing in the home on an occasional but not daily basis;
660	662		(6) provides an incidental cosmetic service, or owns,
661	663		operates, or manages the location where that service is provided,
662	664		if the primary purpose of the service is to enable or assist the
663	665		recipient of the service to participate as the subject of:
664	666		(A) a photographic sitting at a permanent
665	667		establishment that charges a fee exclusively for a photographic
666	668		sitting;
667	669		(B) a television appearance; or
668	670		(C) the filming of a motion picture; or
669	671		(7) performs only natural hair braiding, including
670	672		braiding a person's hair, trimming hair extensions only as
671	673		applicable to the braiding process, and attaching commercial hair
672	674		by braiding and without the use of chemicals or adhesives.
673	675		SECTION 3.03. Section 1603.002, Occupations Code, is
674	676		amended to read as follows:
675	677		Sec. 1603.002. REGULATION OF BARBERING AND COSMETOLOGY BY
676	678		DEPARTMENT OF LICENSING AND REGULATION. The department shall
677	679		administer this chapter. This chapter [and Chapters 1601 and 1602.
678	680		A reference in this chapter to the commission's or department's
679	681		powers or duties applies only in relation to those chapters, except
680	682		that this section] does not limit the department's or commission's
681	683		general powers under Chapter 51.
682	684		SECTION 3.04. Subchapter B, Chapter 1603, Occupations Code,
683	685		is amended to read as follows:
684	686		SUBCHAPTER B. [ADVISORY BOARDS FOR] BARBERING AND COSMETOLOGY
685	687		ADVISORY BOARD
686	688		Sec. 1603.051. ADVISORY BOARD; MEMBERSHIP. The Barbering
687	689		and Cosmetology Advisory Board consists of nine members appointed
688	690		by the presiding officer of the commission, with the commission's
689	691		approval, as follows:
690	692		(1) four members who each hold an individual
691	693		practitioner license under Subchapter E-1, including:
692	694		(A) at least one holder of a Class A barber
693	695		license; and
694	696		(B) at least one holder of a cosmetology operator
695	697		license;
696	698		(2) two members who each hold an establishment
697	699		license;
698	700		(3) two members who each hold a school license; and
699	701		(4) one member who represents the public.
700	702		Sec. 1603.052. DUTIES OF ADVISORY BOARD. (a) The advisory
701	703		board [boards established under Chapters 1601 and 1602] shall
702	704		advise the commission and the department on:
703	705		(1) education and curricula for applicants;
704	706		(2) the content of examinations;
705	707		(3) proposed rules and standards on technical issues
706	708		related to barbering and cosmetology; and
707	709		(4) other issues affecting [administering this
708	710		chapter and Chapters 1601 and 1602 regarding] barbering and [or]
709	711		cosmetology[, as applicable].
710	712		(b) The advisory board shall respond to questions from the
711	713		commission and the department regarding barbering and cosmetology.
712	714		Sec. 1603.053. TERMS; VACANCY. (a) Members of the advisory
713	715		board serve staggered six-year terms, with the terms of three
714	716		members expiring January 31 of each odd-numbered year.
715	717		(b) If a vacancy occurs during a member's term, the
716	718		presiding officer of the commission, with the commission's
717	719		approval, shall appoint a replacement to fill the unexpired term.
718	720		Sec. 1603.054. PRESIDING OFFICER. The presiding officer of
719	721		the commission shall appoint one of the advisory board members to
720	722		serve as the presiding officer of the advisory board for a term of
721	723		two years.
722	724		SECTION 3.05. Section 1603.101, Occupations Code, is
723	725		amended to read as follows:
724	726		Sec. 1603.101. RULES. The commission shall adopt rules
725	727		consistent with this chapter for[:
726	728		[(1)] the administration of this chapter and the
727	729		operations of the department in regulating barbering and
728	730		cosmetology[; and
729	731		[(2) the administration of Chapters 1601 and 1602].
730	732		SECTION 3.06. Section 1603.103(a), Occupations Code, is
731	733		amended to read as follows:
732	734		(a) Until the department determines, by inspection, that
733	735		the person has established the school in compliance with this
734	736		chapter, [Chapter 1601, or Chapter 1602,] a person may not operate a
735	737		school licensed [or permitted] under this chapter[, Chapter 1601,
736	738		or Chapter 1602].
737	739		SECTION 3.07. The heading to Section 1603.104, Occupations
738	740		Code, is amended to read as follows:
739	741		Sec. 1603.104. [PERIODIC] INSPECTIONS.
740	742		SECTION 3.08. Sections 1603.104(a) and (d), Occupations
741	743		Code, are amended to read as follows:
742	744		(a) The department may enter and inspect at any time during
743	745		business hours:
744	746		(1) the place of business of any person regulated
745	747		under this chapter[, Chapter 1601, or Chapter 1602]; or
746	748		(2) any place in which the department has reasonable
747	749		cause to believe that a [certificate,] license[,] or permit holder
748	750		is practicing in violation of this chapter[, Chapter 1601, or
749	751		Chapter 1602] or in violation of a rule or order of the commission
750	752		or executive director.
751	753		(d) An inspector who discovers a violation of this chapter[,
752	754		Chapter 1601, or Chapter 1602] or of a rule or order of the
753	755		commission or executive director shall[:
754	756		[(1)] provide written notice of the violation to the
755	757		license[, certificate,] or permit holder on a form prescribed by
756	758		the department[; and
757	759		[(2) file a complaint with the executive director].
758	760		SECTION 3.09. Section 1603.1045, Occupations Code, is
759	761		amended to read as follows:
760	762		Sec. 1603.1045. CONTRACT TO PERFORM INSPECTIONS. The
761	763		department may contract with a person to perform for the department
762	764		inspections of a school or establishment [, shop, or other facility
763	765		under this chapter, Chapter 1601, or Chapter 1602].
764	766		SECTION 3.10. Subchapter C, Chapter 1603, Occupations Code,
765	767		is amended by adding Section 1603.106 to read as follows:
766	768		Sec. 1603.106. CERTAIN BUILDING AND FACILITY STANDARDS
767	769		PROHIBITED. The commission may not establish building or facility
768	770		standards for a school that are not related to health and safety,
769	771		including a requirement that a building or facility of the school
770	772		have a specific:
771	773		(1) square footage of floor space;
772	774		(2) number of chairs; or
773	775		(3) number of sinks.
774	776		SECTION 3.11. Section 1603.151, Occupations Code, is
775	777		amended to read as follows:
776	778		Sec. 1603.151. NOTIFICATION OF PUBLIC INTEREST INFORMATION
777	779		AND PARTICIPATION. The commission by rule shall establish methods
778	780		by which consumers and service recipients are notified of the name,
779	781		mailing address, and telephone number of the department for the
780	782		purpose of directing complaints to the department regarding
781	783		barbering and cosmetology. The department may provide for that
782	784		notice:
783	785		(1) on each registration form, application, or written
784	786		contract for services of a person regulated under this chapter[,
785	787		Chapter 1601, or Chapter 1602];
786	788		(2) on a sign prominently displayed in the place of
787	789		business of each person regulated under this chapter[, Chapter
788	790		1601, or Chapter 1602]; or
789	791		(3) in a bill for service provided by a person
790	792		regulated under this chapter[, Chapter 1601, or Chapter 1602].
791	793		SECTION 3.12. The heading to Subchapter E, Chapter 1603,
792	794		Occupations Code, is amended to read as follows:
793	795		SUBCHAPTER E. GENERAL [CERTIFICATE,] LICENSE[,] AND PERMIT
794	796		PROVISIONS [REQUIREMENTS]
795	797		SECTION 3.13. Subchapter E, Chapter 1603, Occupations Code,
796	798		is amended by adding Section 1603.2001 to read as follows:
797	799		Sec. 1603.2001. RULES FOR ISSUANCE OF LICENSE OR PERMIT.
798	800		(a) The commission by rule shall establish requirements for the
799	801		issuance of:
800	802		(1) a license for an individual practitioner,
801	803		establishment, or school; and
802	804		(2) a student permit.
803	805		(b) Requirements established by the commission under
804	806		Subsection (a) for an individual practitioner may include
805	807		requirements regarding an applicant's:
806	808		(1) minimum age;
807	809		(2) education level; and
808	810		(3) completed hours of instruction.
809	811		(c) In establishing a requirement under this section for the
810	812		issuance of a license, the commission shall consider whether the
811	813		requirement is the least restrictive requirement possible to ensure
812	814		public safety without creating a barrier to entry into the licensed
813	815		occupation.
814	816		(d) Requirements established under this section:
815	817		(1) for an individual practitioner specialty license
816	818		may not be more stringent than requirements for a Class A barber
817	819		license or a cosmetology operator license; and
818	820		(2) for a specialty establishment license may not be
819	821		more stringent than requirements for an establishment license.
820	822		(e) The commission shall establish standardized
821	823		requirements within license categories.
822	824		SECTION 3.14. Sections 1603.201 and 1603.202, Occupations
823	825		Code, are amended to read as follows:
824	826		Sec. 1603.201. APPLICATION FORM. An application for a
825	827		[certificate,] license[,] or permit under this chapter must be made
826	828		on a form prescribed [and provided] by the department.
827	829		Sec. 1603.202. DUPLICATE [CERTIFICATE,] LICENSE[,] OR
828	830		PERMIT. The department shall issue a duplicate [certificate,]
829	831		license[,] or permit to an applicant who:
830	832		(1) submits an application for a duplicate
831	833		[certificate,] license[,] or permit to the department; and
832	834		(2) pays the required fee.
833	835		SECTION 3.15. Subchapter E, Chapter 1603, Occupations Code,
834	836		is amended by adding Section 1603.2025 to read as follows:
835	837		Sec. 1603.2025. TEMPORARY LICENSE. (a) The department may
836	838		issue a temporary license.
837	839		(b) The commission by rule may establish requirements for
838	840		the issuance of a temporary license.
839	841		(c) A temporary license expires on the 60th day after the
840	842		date the license is issued. A temporary license may not be renewed.
841	843		SECTION 3.16. Sections 1603.203 and 1603.204, Occupations
842	844		Code, are amended to read as follows:
843	845		Sec. 1603.203. PROVISIONAL [CERTIFICATE OR] LICENSE. (a)
844	846		The department may issue a provisional [certificate or] license to
845	847		an applicant currently licensed in another jurisdiction who seeks a
846	848		[certificate or] license in this state and who:
847	849		(1) has been licensed in good standing in the
848	850		profession for which the person seeks the [certificate or] license
849	851		for at least two years in another jurisdiction, including a foreign
850	852		country, that has requirements substantially equivalent to the
851	853		requirements of this chapter [, Chapter 1601, or Chapter 1602, as
852	854		appropriate]; and
853	855		(2) has passed a national or other examination
854	856		recognized by the department [commission] relating to the practice
855	857		of that profession.
856	858		(b) A provisional [certificate or] license is valid until
857	859		the date the department approves or denies the provisional
858	860		[certificate or] license holder's application. The department
859	861		shall issue a [certificate or] license to the provisional
860	862		[certificate or] license holder if:
861	863		(1) the provisional [certificate or] license holder is
862	864		eligible to hold a [certificate or] license under this chapter
863	865		[Chapter 1601 or Chapter 1602]; or
864	866		(2) the provisional [certificate or] license holder
865	867		passes the part of the examination [under Chapter 1601 or Chapter
866	868		1602] that relates to the applicant's knowledge and understanding
867	869		of the laws and rules relating to the practice of the profession in
868	870		this state and:
869	871		(A) the department verifies that the provisional
870	872		[certificate or] license holder meets the education [academic] and
871	873		experience requirements for the [certificate or] license; and
872	874		(B) the provisional [certificate or] license
873	875		holder satisfies any other [certificate or] license requirements.
874	876		(c) The department must approve or deny a provisional
875	877		[certificate or] license holder's application for a [certificate
876	878		or] license not later than the 180th day after the date the
877	879		provisional [certificate or] license is issued. The department may
878	880		extend the 180-day period if the results of an examination have not
879	881		been received by the department before the end of that period.
880	882		Sec. 1603.204. SUBSTANTIALLY EQUIVALENT [RECIPROCAL
881	883		CERTIFICATE,] LICENSE[, OR PERMIT]. (a) A person who holds a
882	884		license[, certificate, or permit] to practice barbering or
883	885		cosmetology from another state or country that has standards or
884	886		work experience requirements that are substantially equivalent to
885	887		the requirements of this chapter [, Chapter 1601, or Chapter 1602]
886	888		may apply for a license[, certificate, or permit] to perform the
887	889		same acts of barbering or cosmetology in this state that the person
888	890		practiced in the other state or country.
889	891		(b) The person must:
890	892		(1) submit an application for the license[,
891	893		certificate, or permit] to the department; and
892	894		(2) pay fees in an amount prescribed by the
893	895		commission, including any applicable license[, certificate, or
894	896		permit] fee.
895	897		(c) A person issued a license[, certificate, or permit]
896	898		under this section:
897	899		(1) may perform the acts of barbering or cosmetology
898	900		authorized by [stated on] the license[, certificate, or permit];
899	901		and
900	902		(2) is subject to the renewal procedures and fees
901	903		provided in this chapter [, Chapter 1601, or Chapter 1602] for the
902	904		performance of those acts of barbering or cosmetology.
903	905		SECTION 3.17. Sections 1603.208(a)(2) and (3), Occupations
904	906		Code, are amended to read as follows:
905	907		(2) "Digitally prearranged remote service" means a
906	908		barbering or cosmetology service performed for compensation by a
907	909		person holding a license[, certificate of registration, or permit]
908	910		under Subchapter E-1 [Chapter 1601 or 1602 or this chapter] that is:
909	911		(A) prearranged through a digital network; and
910	912		(B) performed at a location other than an
911	913		establishment [a place of business that is] licensed [or permitted]
912	914		under Subchapter E-2 [Chapter 1601 or 1602 or this chapter].
913	915		(3) "Remote service business" means a corporation,
914	916		partnership, sole proprietorship, or other entity that, for
915	917		compensation, enables a client to schedule a digitally prearranged
916	918		remote service with a person holding a license[, certificate of
917	919		registration, or permit] under Subchapter E-1 [Chapter 1601 or 1602
918	920		or this chapter].
919	921		SECTION 3.18. Sections 1603.208(c), (d), (f), (g), and (i),
920	922		Occupations Code, are amended to read as follows:
921	923		(c) Sections 1603.2108 and 1603.2109 [1601.453, 1601.455,
922	924		1602.251(c), and 1602.407] do not apply to a digitally prearranged
923	925		remote service scheduled through a remote service business.
924	926		(d) A person who holds a license[, certificate of
925	927		registration, or permit] to practice barbering or cosmetology and
926	928		who performs a digitally prearranged remote service shall:
927	929		(1) comply with this section and the rules adopted
928	930		under this section; and
929	931		(2) practice within the scope of the person's
930	932		license[, certificate of registration, or permit].
931	933		(f) Before a person licensed[, registered, or permitted] to
932	934		practice barbering or cosmetology performs a digitally prearranged
933	935		remote service for a client requesting the service, a remote
934	936		service business must [shall] provide through the entity's digital
935	937		network:
936	938		(1) the following information regarding the person who
937	939		will perform the service:
938	940		(A) the person's first and last name;
939	941		(B) the [number of the] person's license number[,
940	942		certificate of registration, or permit, as applicable]; and
941	943		(C) a photograph of the person;
942	944		(2) the following information regarding the business:
943	945		(A) Internet website address; and
944	946		(B) telephone number; and
945	947		(3) the department's Internet website address and
946	948		telephone number and notice that the client may contact the
947	949		department to file a complaint against the business or person.
948	950		(g) Within a reasonable time after completion of a digitally
949	951		prearranged remote service, the remote service business shall issue
950	952		to the client who requested the service a receipt that includes:
951	953		(1) the date the service was provided;
952	954		(2) a description of the service;
953	955		(3) the first and last name of the person who performed
954	956		the service;
955	957		(4) the [number of the] person's license number[,
956	958		certificate of registration, or permit, as applicable];
957	959		(5) the following information regarding the business:
958	960		(A) Internet website address; and
959	961		(B) telephone number; and
960	962		(6) the department's Internet website address and
961	963		telephone number and notice that the client may contact the
962	964		department to file a complaint against the business or person.
963	965		(i) A remote service business shall terminate a person's
964	966		access to the business's digital network if the business or
965	967		department determines the person violated:
966	968		(1) this chapter; or
967	969		(2) a rule adopted under this chapter[;
968	970		[(3) Chapter 1601 or 1602; or
969	971		[(4) a rule adopted under Chapter 1601 or 1602].
970	972		SECTION 3.19. Subchapter E, Chapter 1603, Occupations Code,
971	973		is amended by adding Section 1603.209 to read as follows:
972	974		Sec. 1603.209. INFECTIOUS AND CONTAGIOUS DISEASES. (a) A
973	975		person holding a license or permit issued under Subchapter E-1 may
974	976		not perform any practice of barbering or cosmetology if the person
975	977		knows the person is suffering from an infectious or contagious
976	978		disease for which the person is not entitled to protection under the
977	979		federal Americans with Disabilities Act of 1990 (42 U.S.C. Section
978	980		12101 et seq.).
979	981		(b) A person holding an establishment or school license may
980	982		not employ a person to perform any practice of barbering or
981	983		cosmetology or to instruct in the practice of barbering or
982	984		cosmetology if the license holder knows that the person is
983	985		suffering from an infectious or contagious disease for which the
984	986		person is not entitled to protection under the federal Americans
985	987		with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.).
986	988		SECTION 3.20. Chapter 1603, Occupations Code, is amended by
987	989		adding Subchapters E-1, E-2, and E-3 to read as follows:
988	990		SUBCHAPTER E-1. INDIVIDUAL PRACTITIONER LICENSES; STUDENT PERMIT;
989	991		PRACTICE
990	992		Sec. 1603.2101. INDIVIDUAL PRACTITIONER LICENSE OR STUDENT
991	993		PERMIT REQUIRED; USE OF CERTAIN TERMS WITHOUT LICENSE PROHIBITED.
992	994		(a) A person may not perform or offer or attempt to perform any act
993	995		of barbering or cosmetology unless the person holds a license or
994	996		permit issued under this subchapter to perform that act.
995	997		(b) Unless the person holds an appropriate license issued
996	998		under this subchapter, a person may not directly or indirectly use
997	999		or cause to be used as a professional or business identification,
998	1000		title, name, representation, asset, or means of advantage or
999	1001		benefit:
1000	1002		(1) the term "barber" or "barbering";
1001	1003		(2) the term "cosmetologist" or "cosmetology"; or
1002	1004		(3) any combination, variation, or abbreviation of the
1003	1005		terms listed in Subdivisions (1) and (2).
1004	1006		Sec. 1603.2102. ISSUANCE OF INDIVIDUAL PRACTITIONER
1005	1007		LICENSE. The department shall issue an individual practitioner
1006	1008		license to an applicant who:
1007	1009		(1) meets the applicable eligibility requirements;
1008	1010		(2) passes the applicable examination;
1009	1011		(3) pays the required fee;
1010	1012		(4) has not committed an act that constitutes a ground
1011	1013		for denial of the license; and
1012	1014		(5) submits an application on a form prescribed by the
1013	1015		department.
1014	1016		Sec. 1603.2103. INDIVIDUAL PRACTITIONER LICENSES. (a) A
1015	1017		person holding:
1016	1018		(1) a Class A barber license may perform any barbering
1017	1019		service;
1018	1020		(2) a cosmetology operator license may perform any
1019	1021		cosmetology service;
1020	1022		(3) a manicurist license may perform any service
1021	1023		described by Section 1603.0011(a)(7) or (8);
1022	1024		(4) an esthetician license may perform any service
1023	1025		described by Section 1603.0011(a)(3), (4), (5), or (6) or (c);
1024	1026		(5) a manicurist/esthetician license may perform any
1025	1027		service described by Section 1603.0011(a)(3), (4), (5), (6), (7),
1026	1028		or (8) or (c);
1027	1029		(6) a hair weaving specialist license may perform any
1028	1030		service described by Section 1603.0011(a)(9);
1029	1031		(7) a hair weaving specialist/esthetician license may
1030	1032		perform any service described by Section 1603.0011(a)(3), (4), (5),
1031	1033		(6), or (9) or (c); and
1032	1034		(8) an eyelash extension specialist license may
1033	1035		perform any service described by Section 1603.0011(c).
1034	1036		(b) The commission by rule shall provide for the issuance
1035	1037		of:
1036	1038		(1) a Class A barber license to a person who holds a
1037	1039		cosmetology operator license; and
1038	1040		(2) a cosmetology operator license to a person who
1039	1041		holds a Class A barber license.
1040	1042		Sec. 1603.2104. WAIVER OF CERTAIN LICENSE REQUIREMENTS.
1041	1043		(a) The department may waive any requirement for a license issued
1042	1044		under this subchapter for an applicant holding a license from
1043	1045		another jurisdiction that has license requirements substantially
1044	1046		equivalent to those of this state.
1045	1047		(b) The department shall issue a license to an applicant
1046	1048		under Subsection (a) if the applicant:
1047	1049		(1) submits an application on a form prescribed by the
1048	1050		department;
1049	1051		(2) pays the application fee; and
1050	1052		(3) provides proof that the applicant holds a current
1051	1053		license to engage in the same or a similar activity issued by
1052	1054		another jurisdiction that has license requirements substantially
1053	1055		equivalent to those of this state.
1054	1056		(c) The department may not require a personal interview as
1055	1057		part of the application process under this section.
1056	1058		(d) A license issued under this section may be renewed as
1057	1059		provided by Subchapter G.
1058	1060		Sec. 1603.2105. STUDENT PERMIT. (a) A student enrolled in
1059	1061		a school licensed under Subchapter E-3 must hold a permit stating
1060	1062		the student's name and the name of the school.
1061	1063		(b) The department shall issue a student permit to an
1062	1064		applicant who submits an application to the department for a
1063	1065		student permit accompanied by the required fee.
1064	1066		(c) A separate application is required for each enrollment.
1065	1067		The application fee applies only to the first enrollment. The
1066	1068		department may not charge the application fee for any later
1067	1069		enrollment.
1068	1070		Sec. 1603.2106. TRANSFER OF LICENSE OR PERMIT PROHIBITED.
1069	1071		A license or permit issued under this subchapter is not
1070	1072		transferable.
1071	1073		Sec. 1603.2107. DISPLAY OF LICENSE OR PERMIT. (a) The
1072	1074		holder of a license issued under this subchapter shall:
1073	1075		(1) display the original license and an attached
1074	1076		photograph of the license holder in a conspicuous place near the
1075	1077		license holder's work chair in the establishment in which the
1076	1078		holder is working; or
1077	1079		(2) make available at the reception desk of the
1078	1080		establishment in which the holder is working, in the manner
1079	1081		prescribed by the department:
1080	1082		(A) the original license and an attached
1081	1083		photograph of the license holder; or
1082	1084		(B) a digital image of the license and photograph
1083	1085		of the license holder.
1084	1086		(b) The holder of a student permit issued under this
1085	1087		subchapter shall display the permit in a reasonable manner at the
1086	1088		school in which the permit holder is enrolled.
1087	1089		Sec. 1603.2108. LOCATION OF PRACTICE. A person holding a
1088	1090		license or permit issued under this subchapter may practice
1089	1091		barbering or cosmetology only at a licensed establishment or
1090	1092		school.
1091	1093		Sec. 1603.2109. SERVICE AT UNLICENSED LOCATION. (a) In
1092	1094		this section, "licensed facility" means:
1093	1095		(1) an establishment licensed under Subchapter E-2; or
1094	1096		(2) a school licensed under Subchapter E-3.
1095	1097		(b) A person holding a license under this subchapter may
1096	1098		perform a service within the scope of the license at a location
1097	1099		other than a licensed facility for a client:
1098	1100		(1) who, because of illness or physical or mental
1099	1101		incapacitation, is unable to receive the service at a licensed
1100	1102		facility; or
1101	1103		(2) in preparation for and at the location of a special
1102	1104		event, including a wedding.
1103	1105		(c) An appointment for a service performed under this
1104	1106		section must be made through a licensed facility.
1105	1107		SUBCHAPTER E-2. ESTABLISHMENT LICENSES; OPERATION
1106	1108		Sec. 1603.2201. LICENSE REQUIRED. (a) A person may not
1107	1109		own, operate, or manage an establishment in which an act of
1108	1110		barbering or cosmetology is practiced unless the person holds a
1109	1111		license issued under this subchapter to operate the establishment.
1110	1112		(b) A person may not lease space on the premises of a
1111	1113		licensed establishment to engage in the practice of barbering or
1112	1114		cosmetology as an independent contractor unless the person holds a
1113	1115		license issued under Subchapter E-1.
1114	1116		Sec. 1603.2202. ISSUANCE OF LICENSE. The department shall
1115	1117		issue the applicable establishment license under this subchapter to
1116	1118		an applicant if:
1117	1119		(1) the applicant:
1118	1120		(A) owns or rents the establishment;
1119	1121		(B) verifies the application;
1120	1122		(C) complies with the application requirements
1121	1123		of this chapter;
1122	1124		(D) pays the required inspection and license
1123	1125		fees; and
1124	1126		(E) has not committed an act that constitutes a
1125	1127		ground for denial of a license; and
1126	1128		(2) the establishment:
1127	1129		(A) meets the commission's minimum health
1128	1130		standards for an establishment; and
1129	1131		(B) complies with all commission rules.
1130	1132		Sec. 1603.2203. ESTABLISHMENT LICENSES. (a) An
1131	1133		establishment licensed as:
1132	1134		(1) an establishment may provide any barbering or
1133	1135		cosmetology service;
1134	1136		(2) a manicurist specialty establishment may provide
1135	1137		any service described by Section 1603.0011(a)(7) or (8);
1136	1138		(3) an esthetician specialty establishment may
1137	1139		provide any service described by Section 1603.0011(a)(3), (4), (5),
1138	1140		or (6) or (c);
1139	1141		(4) a manicurist/esthetician specialty establishment
1140	1142		may provide any service described by Section 1603.0011(a)(3), (4),
1141	1143		(5), (6), (7), or (8) or (c);
1142	1144		(5) a hair weaving specialty establishment may provide
1143	1145		any service described by Section 1603.0011(a)(9);
1144	1146		(6) an eyelash extension specialty establishment may
1145	1147		provide any service described by Section 1603.0011(c);
1146	1148		(7) a mini-establishment may provide any barbering or
1147	1149		cosmetology service; and
1148	1150		(8) a mobile establishment may provide any barbering
1149	1151		or cosmetology service.
1150	1152		(b) In this section:
1151	1153		(1) "Mini-establishment" includes a room or suite of
1152	1154		rooms that is one of a number of connected establishments in a
1153	1155		single premises that open onto a common hallway or another
1154	1156		configuration of operations as authorized by the department in
1155	1157		which a person practices under a license issued under Subchapter
1156	1158		E-1.
1157	1159		(2) "Mobile establishment" means a facility that is
1158	1160		readily movable and where barbering, cosmetology, or both are
1159	1161		practiced other than at a fixed location.
1160	1162		Sec. 1603.2204. TRANSFER OF LICENSE PROHIBITED. A license
1161	1163		issued under this subchapter is not transferable.
1162	1164		Sec. 1603.2205. USE OF ESTABLISHMENT AS SLEEPING QUARTERS
1163	1165		PROHIBITED. (a) An owner or manager of a licensed establishment
1164	1166		may not permit a person to sleep in a room used as part of the
1165	1167		establishment.
1166	1168		(b) A person may not perform an act for which a license is
1167	1169		required in a room in an establishment that is used as sleeping
1168	1170		quarters.
1169	1171		SUBCHAPTER E-3. SCHOOL LICENSES; OPERATION
1170	1172		Sec. 1603.2301. LICENSE REQUIRED. A person may not operate
1171	1173		a school for instruction in the practice of barbering or
1172	1174		cosmetology unless the person holds a license issued under this
1173	1175		subchapter to operate the school.
1174	1176		Sec. 1603.2302. ISSUANCE OF LICENSE. The department shall
1175	1177		issue a license under this subchapter to an applicant who, as
1176	1178		applicable:
1177	1179		(1) submits an application on a form prescribed by the
1178	1180		department;
1179	1181		(2) pays the required fee;
1180	1182		(3) provides to the department adequate proof of
1181	1183		financial responsibility;
1182	1184		(4) meets the health and safety standards established
1183	1185		by the commission; and
1184	1186		(5) satisfies any other requirements of this chapter
1185	1187		or commission rule.
1186	1188		Sec. 1603.2303. SCHOOL LICENSES; INSTRUCTORS; ENFORCEMENT.
1187	1189		(a) The holder of a public secondary school license, public
1188	1190		postsecondary school license, or private postsecondary school
1189	1191		license:
1190	1192		(1) may provide instruction in the barbering or
1191	1193		cosmetology services for which the license holder has been approved
1192	1194		by the department; and
1193	1195		(2) may only employ to provide the instruction
1194	1196		described by Subdivision (1) a person who holds a license issued
1195	1197		under Subchapter E-1 to perform the acts of barbering or
1196	1198		cosmetology for which the person will provide instruction.
1197	1199		(b) The department may take any disciplinary or other
1198	1200		enforcement action against a person who violates Subsection (a)(2).
1199	1201		Sec. 1603.2304. CHANGE OF SCHOOL OWNERSHIP OR LOCATION.
1200	1202		(a) If a licensed school changes ownership:
1201	1203		(1) the outgoing owner shall notify the department of
1202	1204		the change not later than the 10th day before the date the change
1203	1205		takes effect; and
1204	1206		(2) the new owner shall obtain a license under this
1205	1207		subchapter in accordance with commission rule.
1206	1208		(b) A school may not change the location of the school
1207	1209		unless the school obtains approval from the department before the
1208	1210		change by showing that the proposed location meets the requirements
1209	1211		of this chapter and commission rules.
1210	1212		Sec. 1603.2305. SIGNS REQUIRED. The holder of a school
1211	1213		license shall place a sign on the front outside portion of the
1212	1214		school's building in a prominent place that reads "SCHOOL--STUDENT
1213	1215		PRACTITIONERS" in:
1214	1216		(1) at least 10-inch block letters; or
1215	1217		(2) a manner prescribed by the department.
1216	1218		Sec. 1603.2306. INFORMATION PROVIDED TO PROSPECTIVE
1217	1219		STUDENT. The holder of a school license shall provide to each
1218	1220		prospective student, as applicable:
1219	1221		(1) a course outline;
1220	1222		(2) a schedule of the tuition and other fees assessed;
1221	1223		(3) the school's refund policy required under Section
1222	1224		1603.3602;
1223	1225		(4) the school's grading policy and rules relating to
1224	1226		incomplete grades;
1225	1227		(5) the school's rules of operation and conduct,
1226	1228		including rules relating to absences;
1227	1229		(6) the department's name, mailing address, and
1228	1230		telephone number for the purpose of directing complaints to the
1229	1231		department; and
1230	1232		(7) the current job placement rates and employment
1231	1233		rates of students who complete a course of instruction.
1232	1234		Sec. 1603.2307. COURSE LENGTH AND CURRICULUM CONTENT. (a)
1233	1235		A school shall design course length and curriculum content to
1234	1236		reasonably ensure that a student develops the job skills and
1235	1237		knowledge necessary for employment.
1236	1238		(b) A school must submit to the department for approval the
1237	1239		course length and curriculum content for each course offered by the
1238	1240		school. The school may not implement a course length and curriculum
1239	1241		content without the approval of the department.
1240	1242		(c) Before issuing or renewing a license under this
1241	1243		subchapter, the department must require the school to account for
1242	1244		each course length and curriculum content.
1243	1245		Sec. 1603.2308. REQUIRED COURSES. (a) A school shall
1244	1246		instruct students in the theory and practice of subjects necessary
1245	1247		and beneficial to the practice of barbering and cosmetology.
1246	1248		(b) The commission by rule shall establish the subjects in
1247	1249		which students shall receive instruction.
1248	1250		(c) A school may not increase, decrease, or withhold for any
1249	1251		reason the number of hours earned by a student.
1250	1252		Sec. 1603.2309. DAILY ATTENDANCE RECORDS. (a) A school
1251	1253		shall maintain an attendance record showing the students' daily
1252	1254		attendance.
1253	1255		(b) The department may inspect a school's attendance
1254	1256		records at any time.
1255	1257		Sec. 1603.2310. INSTRUCTOR-TO-STUDENT RATIO. A licensed
1256	1258		school must have at least one instructor for every 25 students on
1257	1259		the school's premises.
1258	1260		Sec. 1603.2311. REPORTS TO DEPARTMENT. (a) A licensed
1259	1261		school shall maintain a monthly progress report regarding each
1260	1262		student attending the school. The report must certify the daily
1261	1263		attendance record of each student and the number of hours earned by
1262	1264		each student during the previous month.
1263	1265		(b) On a student's completion of a prescribed course of
1264	1266		instruction, the school shall notify the department that the
1265	1267		student has completed the required number of hours and is eligible
1266	1268		to take the appropriate examination.
1267	1269		(c) The holder of a school license shall provide to the
1268	1270		department on request:
1269	1271		(1) the current course completion rates of students
1270	1272		who attend a course of instruction offered by the school; and
1271	1273		(2) job placement rates and employment rates of
1272	1274		students who complete a course of instruction.
1273	1275		Sec. 1603.2312. ADDITIONAL DUTIES OF LICENSE HOLDER. The
1274	1276		holder of a school license shall:
1275	1277		(1) maintain a sanitary premises;
1276	1278		(2) establish regular class and instruction hours and
1277	1279		grades;
1278	1280		(3) hold examinations before issuing diplomas; and
1279	1281		(4) maintain a copy of the school's curriculum in a
1280	1282		conspicuous place and verify that the curriculum is being followed.
1281	1283		Sec. 1603.2313. TRANSFER OF HOURS OF INSTRUCTION. (a) A
1282	1284		student at a licensed school may transfer completed hours of
1283	1285		instruction to another licensed school in this state.
1284	1286		(b) In order for the hours of instruction to be transferred,
1285	1287		a transcript showing the completed courses and number of hours
1286	1288		certified by the school in which the instruction was given must be
1287	1289		submitted to the department.
1288	1290		(c) In evaluating a student's transcript, the department
1289	1291		shall determine whether the agreed tuition has been paid. If the
1290	1292		tuition has not been paid, the department shall notify the student
1291	1293		that the student's transcript cannot be certified to the school to
1292	1294		which the student seeks a transfer until proof is provided that the
1293	1295		tuition has been paid.
1294	1296		(d) On evaluation and approval, the department shall
1295	1297		certify in writing to the student and to the school to which the
1296	1298		student seeks a transfer that:
1297	1299		(1) the stated courses and hours have been
1298	1300		successfully completed; and
1299	1301		(2) the student is not required to repeat the hours of
1300	1302		instruction.
1301	1303		Sec. 1603.2314. IDENTIFICATION OF AND WORK PERFORMED BY
1302	1304		STUDENT. (a) Each licensed school shall maintain in a conspicuous
1303	1305		place a list of the names and identifying pictures of the students
1304	1306		who are enrolled in the school's courses.
1305	1307		(b) A school may not receive compensation for work done by a
1306	1308		student unless the student has completed 10 percent of the required
1307	1309		number of hours for a license under Subchapter E-1.
1308	1310		(c) If a school violates this section, the license of the
1309	1311		school may be revoked or suspended.
1310	1312		SECTION 3.21. Section 1603.252(b), Occupations Code, is
1311	1313		amended to read as follows:
1312	1314		(b) The executive director shall determine uniform
1313	1315		standards for acceptable performance on an examination for a
1314	1316		license under Subchapter E-1 [or certificate under Chapter 1601 and
1315	1317		for a license or certificate under Chapter 1602].
1316	1318		SECTION 3.22. Sections 1603.253 and 1603.255, Occupations
1317	1319		Code, are amended to read as follows:
1318	1320		Sec. 1603.253. WRITTEN EXAMINATION. The department
1319	1321		[commission] shall select an examination for each written
1320	1322		examination required under this chapter[, Chapter 1601, or Chapter
1321	1323		1602]. The written examination must be:
1322	1324		(1) validated by an independent testing professional;
1323	1325		or
1324	1326		(2) purchased from a national testing service.
1325	1327		Sec. 1603.255. EARLY EXAMINATION. The commission by rule
1326	1328		[department] may allow for the early written examination of a
1327	1329		student [who has completed the following number of hours of
1328	1330		instruction in a department-approved training program:
1329	1331		[(1) 1,000 hours for a student seeking a Class A barber
1330	1332		certificate in a private barber school;
1331	1333		[(2) 900 hours for a student seeking an operator
1332	1334		license in a private cosmetology school; or
1333	1335		[(3) 900 hours for a student seeking a Class A barber
1334	1336		certificate or operator license in a publicly funded barber or
1335	1337		cosmetology school].
1336	1338		SECTION 3.23. Sections 1603.256(a) and (c), Occupations
1337	1339		Code, are amended to read as follows:
1338	1340		(a) The commission may require a practical examination as it
1339	1341		considers necessary for a license [or certificate] issued under
1340	1342		Subchapter E-1 [Chapter 1601 or 1602].
1341	1343		(c) The following persons may administer a practical
1342	1344		examination [required under this subchapter]:
1343	1345		(1) the department;
1344	1346		(2) a person with whom the department contracts under
1345	1347		Section 1603.252;
1346	1348		(3) a licensed [barber] school[, private beauty
1347	1349		culture school, or a public secondary or postsecondary beauty
1348	1350		culture school] that is approved by the department to administer
1349	1351		the examination under Section 1603.252; or
1350	1352		(4) the Windham School District.
1351	1353		SECTION 3.24. Subchapter G, Chapter 1603, Occupations Code,
1352	1354		is amended to read as follows:
1353	1355		SUBCHAPTER G. [CERTIFICATE,] LICENSE[, AND PERMIT] RENEWAL
1354	1356		Sec. 1603.3001. LICENSE TERMS. (a) Except as provided by
1355	1357		Subsection (b), a license other than a temporary license expires on
1356	1358		the second anniversary of the date the license is issued.
1357	1359		(b) A school license expires on the first anniversary of the
1358	1360		date the license is issued.
1359	1361		Sec. 1603.3002. RENEWAL RULES. (a) The commission by rule
1360	1362		may establish requirements for the renewal of a license issued
1361	1363		under this chapter, including continuing education requirements.
1362	1364		(b) The commission may establish separate requirements for:
1363	1365		(1) the initial renewal of a license; and
1364	1366		(2) subsequent renewals of a license.
1365	1367		(c) Before establishing continuing education requirements
1366	1368		under this section, the commission must consider the potential
1367	1369		impact of continuing education with respect to:
1368	1370		(1) identifying and assisting trafficked persons; and
1369	1371		(2) providing license holders with opportunities to
1370	1372		acquire new skills.
1371	1373		Sec. 1603.3003. ISSUANCE OF RENEWAL LICENSE. The
1372	1374		department shall issue a renewal license on receipt of:
1373	1375		(1) a renewal application in the form prescribed by
1374	1376		the department; and
1375	1377		(2) any renewal fee.
1376	1378		Sec. 1603.3004. RENEWAL WHILE IN ARMED FORCES. (a) The
1377	1379		department may not require the holder of a license issued under
1378	1380		Subchapter E-1 who is serving on active duty in the United States
1379	1381		armed forces to renew the person's license.
1380	1382		(b) The department shall issue a renewal license on
1381	1383		application and payment of the required renewal fee not later than
1382	1384		the 90th day after the date the person is released or discharged
1383	1385		from active duty in the United States armed forces.
1384	1386		Sec. 1603.301. DENIAL OF RENEWAL DUE TO ADMINISTRATIVE
1385	1387		PENALTY. The department may deny a person's request to renew a
1386	1388		[certificate,] license[, or permit] issued under this chapter[,
1387	1389		Chapter 1601, or Chapter 1602] if the person has not paid an
1388	1390		administrative penalty imposed under Subchapter F, Chapter
1389	1391		51. This section does not apply if:
1390	1392		(1) the person's time to pay or request a hearing has
1391	1393		not expired under Section 51.304;
1392	1394		(2) the person has requested a hearing under Section
1393	1395		51.304, but the person's time to pay has not expired under Section
1394	1396		51.307; or
1395	1397		(3) the penalty is stayed.
1396	1398		SECTION 3.25. The heading to Subchapter H, Chapter 1603,
1397	1399		Occupations Code, is amended to read as follows:
1398	1400		SUBCHAPTER H. PRACTICE PROVISIONS APPLICABLE TO MORE THAN ONE
1399	1401		LICENSE TYPE [CHAPTERS 1601 AND 1602]
1400	1402		SECTION 3.26. Section 1603.351, Occupations Code, is
1401	1403		amended to read as follows:
1402	1404		Sec. 1603.351. MINIMUM CURRICULUM FOR SCHOOLS; DISTANCE
1403	1405		EDUCATION. (a) The commission shall prescribe the minimum
1404	1406		curriculum, including the subjects and the number of hours in each
1405	1407		subject, taught by a licensed school [licensed under this chapter,
1406	1408		Chapter 1601, or Chapter 1602].
1407	1409		(a-1) Notwithstanding any other law, the commission may
1408	1410		adopt rules to:
1409	1411		(1) authorize a licensed school [licensed under this
1410	1412		chapter, Chapter 1601, or Chapter 1602] to account for any hours of
1411	1413		instruction completed under this chapter [those chapters] on the
1412	1414		basis of clock hours or credit hours; and
1413	1415		(2) establish standards for determining the
1414	1416		equivalency and conversion of clock hours to credit hours and
1415	1417		credit hours to clock hours.
1416	1418		(b) The commission may adopt rules allowing distance
1417	1419		education only for the theory portion of the curriculum taught by a
1418	1420		licensed school [licensed under this chapter, Chapter 1601, or
1419	1421		Chapter 1602].
1420	1422		(c) Distance education does not satisfy the requirements of
1421	1423		the practical portion of the curriculum taught by a licensed school
1422	1424		[licensed under this chapter, Chapter 1601, or Chapter 1602].
1423	1425		SECTION 3.27. Sections 1603.352(a) and (b), Occupations
1424	1426		Code, are amended to read as follows:
1425	1427		(a) A person who holds a license[, certificate,] or permit
1426	1428		issued under this chapter[, Chapter 1601, or Chapter 1602] and who
1427	1429		performs a [barbering service described by Section 1601.002(1)(E)
1428	1430		or (F) or a cosmetology] service described by Section
1429	1431		1603.0011(a)(7) or (8) [1602.002(a)(8) or (9)] shall, before
1430	1432		performing the service, clean, disinfect, and sterilize with an
1431	1433		autoclave or dry heat sterilizer or sanitize with an ultraviolet
1432	1434		sanitizer, in accordance with the sterilizer or sanitizer
1433	1435		manufacturer's instructions, each metal instrument, including
1434	1436		metal nail clippers, cuticle pushers, cuticle nippers, and other
1435	1437		metal instruments, used to perform the service.
1436	1438		(b) The owner or manager of a licensed establishment or
1437	1439		[barber shop, barber] school[, beauty shop, specialty shop, beauty
1438	1440		culture school, or other facility licensed under this chapter,
1439	1441		Chapter 1601, or Chapter 1602,] is responsible for providing an
1440	1442		autoclave, a dry heat sterilizer, or an ultraviolet sanitizer for
1441	1443		use in the establishment [shop] or school as required by Subsection
1442	1444		(a).
1443	1445		SECTION 3.28. Subchapter H, Chapter 1603, Occupations Code,
1444	1446		is amended by adding Sections 1603.353, 1603.354, 1603.355,
1445	1447		1603.356, 1603.357, and 1603.358 to read as follows:
1446	1448		Sec. 1603.353. EMPLOYMENT OF LICENSE HOLDER. (a) A
1447	1449		licensed school may not employ a person holding a license issued
1448	1450		under Subchapter E-1 solely to perform the practices of barbering
1449	1451		or cosmetology for which the person is licensed.
1450	1452		(b) A person holding a license for an establishment may not
1451	1453		employ or lease to a person to practice barbering or cosmetology at
1452	1454		the establishment unless the person holds a license issued under
1453	1455		Subchapter E-1.
1454	1456		Sec. 1603.354. NECESSARY EQUIPMENT. The owner, operator,
1455	1457		or manager of a licensed establishment or school shall equip the
1456	1458		establishment or school with the facilities, supplies, appliances,
1457	1459		furnishings, and materials necessary to enable a person employed on
1458	1460		the premises to comply with this chapter.
1459	1461		Sec. 1603.355. DISPLAY OF LICENSE. A licensed school or
1460	1462		establishment shall display the license in a conspicuous place in
1461	1463		the school or establishment for which the license is issued.
1462	1464		Sec. 1603.356. DISPLAY OF HUMAN TRAFFICKING INFORMATION.
1463	1465		(a) A licensed school or establishment shall display a sign
1464	1466		approved by or acceptable to the commission or the department
1465	1467		concerning services and assistance available to victims of human
1466	1468		trafficking.
1467	1469		(b) The sign required by this section must:
1468	1470		(1) be in English, Spanish, Vietnamese, and any other
1469	1471		language required by commission rule; and
1470	1472		(2) include a toll-free telephone number of a
1471	1473		nationally recognized information and referral hotline for victims
1472	1474		of human trafficking.
1473	1475		(c) The commission by rule shall establish requirements
1474	1476		regarding the posting of signs under this section.
1475	1477		Sec. 1603.357. DISPLAY OF SANITATION RULES. A licensed
1476	1478		school or establishment shall display a copy of the commission's
1477	1479		sanitation rules.
1478	1480		Sec. 1603.358. OPERATION OF ESTABLISHMENT AND SCHOOL ON
1479	1481		SINGLE PREMISES. A person may not operate an establishment on the
1480	1482		same premises as a school unless the facilities are separated by
1481	1483		walls of permanent construction without an opening between the
1482	1484		facilities.
1483	1485		SECTION 3.29. Chapter 1603, Occupations Code, is amended by
1484	1486		adding Subchapter H-1 to read as follows:
1485	1487		SUBCHAPTER H-1. FINANCIAL PROVISIONS APPLICABLE TO PRIVATE
1486	1488		POSTSECONDARY SCHOOLS
1487	1489		Sec. 1603.3601. CANCELLATION AND SETTLEMENT POLICY. The
1488	1490		holder of a private postsecondary school license shall maintain a
1489	1491		cancellation and settlement policy that provides a full refund of
1490	1492		money paid by a student if the student:
1491	1493		(1) cancels the enrollment agreement or contract not
1492	1494		later than midnight of the third day after the date the agreement or
1493	1495		contract is signed by the student, excluding Saturdays, Sundays,
1494	1496		and legal holidays; or
1495	1497		(2) entered into the enrollment agreement or contract
1496	1498		because of a misrepresentation made:
1497	1499		(A) in the advertising or promotional materials
1498	1500		of the school; or
1499	1501		(B) by an owner or representative of the school.
1500	1502		Sec. 1603.3602. REFUND POLICY. (a) The holder of a private
1501	1503		postsecondary school license shall maintain a refund policy to
1502	1504		provide for the refund of any unused parts of tuition, fees, and
1503	1505		other charges paid by a student who, at the expiration of the
1504	1506		cancellation period established under Section 1603.3601:
1505	1507		(1) fails to enter the course of training;
1506	1508		(2) withdraws from the course of training; or
1507	1509		(3) is terminated from the course of training before
1508	1510		completion of the course.
1509	1511		(b) The refund policy must provide that:
1510	1512		(1) the refund is based on the period of the student's
1511	1513		enrollment, computed on the basis of course time expressed in
1512	1514		scheduled hours, as specified by an enrollment agreement, contract,
1513	1515		or other document acceptable to the department;
1514	1516		(2) the effective date of the termination for refund
1515	1517		purposes is the earliest of:
1516	1518		(A) the last date of attendance, if the student
1517	1519		is terminated by the school;
1518	1520		(B) the date the license holder receives the
1519	1521		student's written notice of withdrawal; or
1520	1522		(C) 10 school days after the last date of
1521	1523		attendance; and
1522	1524		(3) the school may retain not more than $100 if:
1523	1525		(A) tuition is collected before the course of
1524	1526		training begins; and
1525	1527		(B) the student does not begin the course of
1526	1528		training before the cancellation period established under Section
1527	1529		1603.3601 expires.
1528	1530		Sec. 1603.3603. WITHDRAWAL OR TERMINATION OF STUDENT. (a)
1529	1531		If a student at a private postsecondary school begins a course of
1530	1532		training that is scheduled to run not more than 12 months and,
1531	1533		during the last 50 percent of the course, withdraws from the course
1532	1534		or is terminated by the school, the school:
1533	1535		(1) may retain 100 percent of the tuition and fees paid
1534	1536		by the student; and
1535	1537		(2) is not obligated to refund any additional
1536	1538		outstanding tuition.
1537	1539		(b) If a student at a private postsecondary school begins a
1538	1540		course of training that is scheduled to run not more than 12 months
1539	1541		and, before the last 50 percent of the course, withdraws from the
1540	1542		course or is terminated by the school, the school shall refund:
1541	1543		(1) 90 percent of any outstanding tuition for a
1542	1544		withdrawal or termination that occurs during the first week or
1543	1545		first 10 percent of the course, whichever period is shorter;
1544	1546		(2) 80 percent of any outstanding tuition for a
1545	1547		withdrawal or termination that occurs after the first week or first
1546	1548		10 percent of the course, whichever period is shorter, but within
1547	1549		the first three weeks of the course;
1548	1550		(3) 75 percent of any outstanding tuition for a
1549	1551		withdrawal or termination that occurs after the first three weeks
1550	1552		of the course but not later than the completion of the first 25
1551	1553		percent of the course; and
1552	1554		(4) 50 percent of any outstanding tuition for a
1553	1555		withdrawal or termination that occurs not later than the completion
1554	1556		of the first 50 percent of the course.
1555	1557		(c) A refund owed under this section must be paid not later
1556	1558		than the 30th day after the date the student becomes eligible for
1557	1559		the refund.
1558	1560		Sec. 1603.3604. INTEREST ON REFUND. (a) If tuition is not
1559	1561		refunded within the period required by Section 1603.3603, the
1560	1562		private postsecondary school shall pay interest on the amount of
1561	1563		the refund for the period beginning the first day after the date the
1562	1564		refund period expires and ending the day preceding the date the
1563	1565		refund is made.
1564	1566		(b) If tuition is refunded to a lending institution, the
1565	1567		interest shall be paid to that institution and applied against the
1566	1568		student's loan.
1567	1569		(c) The commissioner of education shall annually set the
1568	1570		interest rate at a rate sufficient to deter a school from retaining
1569	1571		money paid by a student.
1570	1572		(d) The department may exempt a school from the payment of
1571	1573		interest if the school makes a good faith effort to refund the
1572	1574		tuition but is unable to locate the student. The school shall
1573	1575		provide to the department on request documentation of the effort to
1574	1576		locate the student.
1575	1577		Sec. 1603.3605. REENTRY OF STUDENT AFTER WITHDRAWAL. If a
1576	1578		student voluntarily withdraws or is terminated after completing 50
1577	1579		percent of the course at a private postsecondary school, the school
1578	1580		shall allow the student to reenter at any time during the 48-month
1579	1581		period following the date of withdrawal or termination unless the
1580	1582		student presents a danger to the other students or staff of the
1581	1583		school.
1582	1584		Sec. 1603.3606. EFFECT OF STUDENT WITHDRAWAL. (a) A
1583	1585		private postsecondary school shall record a grade of incomplete for
1584	1586		a student who withdraws but is not entitled to a refund under
1585	1587		Section 1603.3603 if the student:
1586	1588		(1) requests the grade at the time the student
1587	1589		withdraws; and
1588	1590		(2) withdraws for an appropriate reason unrelated to
1589	1591		the student's academic status.
1590	1592		(b) A student who receives a grade of incomplete may
1591	1593		reenroll in the program during the 48-month period following the
1592	1594		date the student withdraws and complete the subjects without
1593	1595		payment of additional tuition.
1594	1596		Sec. 1603.3607. EFFECT OF PRIVATE POSTSECONDARY SCHOOL
1595	1597		CLOSURE. (a) If a private postsecondary school closes, the
1596	1598		department shall attempt to arrange for students enrolled in the
1597	1599		closed school to attend another private postsecondary school.
1598	1600		(b) If a student from a closed school is placed in another
1599	1601		private postsecondary school, the expense incurred by the school in
1600	1602		providing training directly related to educating the student,
1601	1603		including the applicable tuition for the period for which the
1602	1604		student paid tuition, shall be paid from the barbering and
1603	1605		cosmetology school tuition protection account.
1604	1606		(c) If a student from a closed private postsecondary school
1605	1607		cannot be placed in another private postsecondary school, the
1606	1608		student's tuition and fees shall be refunded as provided by Section
1607	1609		1603.3602. If a student from a closed private postsecondary school
1608	1610		does not accept a place that is available and reasonable in another
1609	1611		private postsecondary school, the student's tuition and fees shall
1610	1612		be refunded as provided by Section 1603.3603. A refund under this
1611	1613		subsection shall be paid from the barbering and cosmetology school
1612	1614		tuition protection account. The amount of the refund may not exceed
1613	1615		$35,000.
1614	1616		(d) If another private postsecondary school assumes
1615	1617		responsibility for the closed school's students and there are no
1616	1618		significant changes in the quality of the training, the student
1617	1619		from the closed school is not entitled to a refund under Subsection
1618	1620		(c).
1619	1621		Sec. 1603.3608. BARBERING AND COSMETOLOGY SCHOOL TUITION
1620	1622		PROTECTION ACCOUNT. (a) If on January 1 of any year the amount in
1621	1623		the barbering and cosmetology school tuition protection account is
1622	1624		less than $225,000, the department shall collect a fee from each
1623	1625		private postsecondary school during that year by applying a
1624	1626		percentage to the school's renewal fee at a rate that will bring the
1625	1627		balance of the account to $225,000.
1626	1628		(b) The department shall administer claims made against the
1627	1629		account.
1628	1630		(c) The comptroller shall invest the account in the same
1629	1631		manner as other state funds.
1630	1632		(d) Sufficient money from the account shall be appropriated
1631	1633		to the department for the purpose described by Section 1603.3607.
1632	1634		(e) Attorney's fees, court costs, or damages may not be paid
1633	1635		from the account.
1634	1636		Sec. 1603.3609. RULES. The commission by rule may:
1635	1637		(1) adjust any tuition reimbursement limit
1636	1638		established under this subchapter; and
1637	1639		(2) adopt procedures regarding the collection of fees
1638	1640		from private postsecondary schools under Section 1603.3608.
1639	1641		SECTION 3.30. Section 1603.401, Occupations Code, is
1640	1642		amended to read as follows:
1641	1643		Sec. 1603.401. DENIAL, SUSPENSION, OR REVOCATION. The
1642	1644		department may [shall] deny an application for issuance or renewal
1643	1645		of, or may [shall] suspend or revoke, a [certificate,] license[,]
1644	1646		or permit if the applicant or person holding the [certificate,]
1645	1647		license[,] or permit:
1646	1648		(1) engages in gross malpractice;
1647	1649		(2) knowingly continues to practice while having an
1648	1650		infectious or contagious disease;
1649	1651		(3) knowingly makes a false or deceptive statement in
1650	1652		advertising;
1651	1653		(4) advertises, practices, or attempts to practice
1652	1654		under another person's name or trade name;
1653	1655		(5) engages in fraud or deceit in obtaining a
1654	1656		[certificate,] license[,] or permit; or
1655	1657		(6) engages in an act that violates this chapter or [,]
1656	1658		Chapter 51[, Chapter 1601, or Chapter 1602] or a rule or order
1657	1659		adopted or issued under this chapter or Chapter 51 [those
1658	1660		chapters].
1659	1661		SECTION 3.31. The heading to Subchapter J, Chapter 1603,
1660	1662		Occupations Code, is amended to read as follows:
1661	1663		SUBCHAPTER J. OTHER [PENALTIES AND] ENFORCEMENT PROVISIONS
1662	1664		SECTION 3.32. Sections 1603.453 and 1603.454, Occupations
1663	1665		Code, are amended to read as follows:
1664	1666		Sec. 1603.453. APPEAL BOND NOT REQUIRED. The department is
1665	1667		not required to give an appeal bond in a cause arising under this
1666	1668		chapter[, Chapter 1601, or Chapter 1602].
1667	1669		Sec. 1603.454. ENFORCEMENT BY ATTORNEY GENERAL. The
1668	1670		attorney general shall represent the department in an action to
1669	1671		enforce this chapter[, Chapter 1601, or Chapter 1602].
1670	1672		SECTION 3.33. The following provisions of the Occupations
1671	1673		Code are repealed:
1672	1674		(1) Chapters 1601 and 1602;
1673	1675		(2) Sections 1603.104(b), (c), and (c-1);
1674	1676		(3) Section 1603.205;
1675	1677		(4) Section 1603.206;
1676	1678		(5) Section 1603.207;
1677	1679		(6) Section 1603.254;
1678	1680		(7) Section 1603.451;
1679	1681		(8) Section 1603.452;
1680	1682		(9) Section 1603.455; and
1681	1683		(10) Section 1603.456.
1682	1684		SECTION 3.34. (a) To ensure that licensed schools offering
1683	1685		instruction in barbering and cosmetology maintain accreditation
1684	1686		and that students of those schools continue to qualify for federal
1685	1687		aid, the Texas Commission of Licensing and Regulation shall, as
1686	1688		soon as practicable after September 1, 2021, adopt any rules
1687	1689		necessary for the orderly implementation of the changes in law made
1688	1690		by this article to the licensing system and curricula requirements
1689	1691		and standards for schools offering instruction in barbering and
1690	1692		cosmetology.
1691	1693		(b) Not later than September 1, 2023:
1692	1694		(1) the Texas Commission of Licensing and Regulation
1693	1695		shall adopt any additional rules necessary to implement the changes
1694	1696		in law made by this article; and
1695	1697		(2) the Texas Department of Licensing and Regulation
1696	1698		shall begin to issue and renew licenses and permits under
1697	1699		Subchapters E-1, E-2, and E-3, Chapter 1603, Occupations Code, as
1698	1700		added by this article.
1699	1701		SECTION 3.35. Notwithstanding the repeal by this article of
1700	1702		Chapters 1601 and 1602, and Sections 1603.205, 1603.206, and
1701	1703		1603.207, Occupations Code, the Texas Department of Licensing and
1702	1704		Regulation may continue to issue until September 1, 2023, a
1703	1705		certificate, license, or permit under those provisions as they
1704	1706		existed immediately before September 1, 2021, and those provisions
1705	1707		are continued in effect for that purpose.
1706	1708		SECTION 3.36. Notwithstanding the repeal by this article of
1707	1709		Chapters 1601 and 1602, Occupations Code, until the Texas
1708	1710		Commission of Licensing and Regulation adopts rules regarding
1709	1711		written and practical examination requirements for the issuance of
1710	1712		licenses under Chapter 1603, Occupations Code, as amended by this
1711	1713		article, the Texas Department of Licensing and Regulation shall
1712	1714		continue to operate under the requirements regarding written and
1713	1715		practical examinations in former Chapters 1601 and 1602,
1714	1716		Occupations Code, as those chapters were in effect immediately
1715	1717		before September 1, 2021, and those provisions are continued in
1716	1718		effect for that purpose.
1717	1719		SECTION 3.37. (a) A certificate, license, or permit issued
1718	1720		under former Chapter 1601 or 1602, Occupations Code, or under
1719	1721		former Section 1603.205, 1603.206, or 1603.207, Occupations Code,
1720	1722		before September 1, 2023, continues to be valid until the
1721	1723		certificate, license, or permit expires, and those chapters and
1722	1724		sections are continued in effect for that purpose.
1723	1725		(b) A person who on September 1, 2021, holds a certificate,
1724	1726		license, or permit issued under former Chapter 1601 or 1602,
1725	1727		Occupations Code, or under former Section 1603.205, 1603.206, or
1726	1728		1603.207, Occupations Code, is entitled on expiration of that
1727	1729		certificate, license, or permit to issuance of a comparable license
1728	1730		or permit under the applicable provision of Chapter 1603,
1729	1731		Occupations Code, as amended by this article, if the person
1730	1732		otherwise meets the requirements for the license or permit.
1731	1733		(c) A person who on September 1, 2021, holds an instructor
1732	1734		license issued under former Chapter 1601 or 1602, Occupations Code,
1733	1735		is entitled on expiration of that license to issuance of a license
1734	1736		under the applicable provision of Chapter 1603, Occupations Code,
1735	1737		as amended by this article, that is comparable to the individual
1736	1738		practitioner license required for the issuance of the instructor
1737	1739		license if the person otherwise meets the requirements for the
1738	1740		license under Chapter 1603.
1739	1741		SECTION 3.38. Notwithstanding any other law, on September
1740	1742		1, 2021, a person holding a permit under former Subchapter G,
1741	1743		Chapter 1601, Occupations Code, a facility license under former
1742	1744		Subchapter G, Chapter 1602, Occupations Code, or a license or
1743	1745		permit under former Section 1603.205, 1603.206, or 1603.207,
1744	1746		Occupations Code, before September 1, 2021, may employ or contract
1745	1747		with any qualified individual practitioner holding a certificate,
1746	1748		license, or permit issued under Chapter 1601 or 1602, Occupations
1747	1749		Code, before September 1, 2021, without regard to the chapter under
1748	1750		which the practitioner was issued the certificate, license, or
1749	1751		permit.
1750	1752		SECTION 3.39. Notwithstanding any other law, on September
1751	1753		1, 2021, the holder of a license issued under former Section
1752	1754		1601.256, 1601.262, or 1601.263, Occupations Code, before that date
1753	1755		may perform the services described by Sections 1603.0011(a)(6) and
1754	1756		(c), Occupations Code, as added by this Act.
1755	1757		SECTION 3.40. (a) Not later than December 1, 2021, the
1756	1758		presiding officer of the Texas Commission of Licensing and
1757	1759		Regulation shall appoint members to the Barbering and Cosmetology
1758	1760		Advisory Board in accordance with Section 1603.051, Occupations
1759	1761		Code, as amended by this article.
1760	1762		(b) On December 1, 2021, the Advisory Board on Barbering and
1761	1763		the Advisory Board on Cosmetology are abolished.
1762	1764		(c) Notwithstanding Section 1603.053, Occupations Code, as
1763	1765		added by this article, in making the initial appointments to the
1764	1766		Barbering and Cosmetology Advisory Board, the presiding officer of
1765	1767		the Texas Commission of Licensing and Regulation shall designate
1766	1768		three members of the advisory board to serve terms expiring January
1767	1769		31, 2023, three members to serve terms expiring January 31, 2025,
1768	1770		and three members to serve terms expiring January 31, 2027.
1769	1771		SECTION 3.41. As soon as practicable after September 1,
1770	1772		2021, the comptroller of public accounts shall transfer to the
1771	1773		barbering and cosmetology school tuition protection account the
1772	1774		unexpended and unencumbered balance of the barber school tuition
1773	1775		protection account and the unexpended and unencumbered balance of
1774	1776		the private beauty culture school tuition protection account.
1775	1777		SECTION 3.42. (a) The changes in law made by this article
1776	1778		do not affect the validity of a disciplinary action or other
1777	1779		proceeding that was initiated before September 1, 2021, and that is
1778	1780		pending on September 1, 2021. A disciplinary action that is pending
1779	1781		on September 1, 2021, is governed by the law in effect immediately
1780	1782		before September 1, 2021, and the former law is continued in effect
1781	1783		for that purpose.
1782	1784		(b) The repeal of a law by this article does not entitle a
1783	1785		person to a refund of a certificate, license, or permit fee paid by
1784	1786		the person before September 1, 2021.
1785		-	ARTICLE 4. RESIDENTIAL SERVICE CONTRACTS
1786		-	SECTION 4.01. Section 1101.006, Occupations Code, is
1787		-	amended to read as follows:
1788		-	Sec. 1101.006. APPLICATION OF SUNSET ACT. The Texas Real
1789		-	Estate Commission is subject to Chapter 325, Government Code (Texas
1790		-	Sunset Act). Unless continued in existence as provided by that
1791		-	chapter, the commission is abolished and this chapter and [,]
1792		-	Chapter 1102[, and Chapter 1303] of this code and Chapter 221,
1793		-	Property Code, expire September 1, 2025.
1794		-	SECTION 4.02. Section 1304.003(a), Occupations Code, is
1795		-	amended by amending Subdivision (2) and adding Subdivision (4) to
1796		-	read as follows:
1797		-	(2) "Service contract" means an agreement that is
1798		-	entered into for a separately stated consideration and for a
1799		-	specified term under which a provider agrees to:
1800		-	(A) repair, replace, or maintain a product, or
1801		-	provide indemnification for the repair, replacement, or
1802		-	maintenance of a product, for operational or structural failure or
1803		-	damage caused by a defect in materials or workmanship or by normal
1804		-	wear;
1805		-	(B) provide identity recovery, if the service
1806		-	contract is financed under Chapter 348 or 353, Finance Code; [or]
1807		-	(C) provide compensation to the buyer of a
1808		-	vehicle on the total constructive loss under a depreciation benefit
1809		-	optional member program; or
1810		-	(D) provide a service, reimbursement, or payment
1811		-	under a residential service contract.
1812		-	(4) "Residential service contract" means a service
1813		-	contract of any duration under which a provider agrees to, in the
1814		-	event of the operational or structural failure of, damage caused by
1815		-	a power surge to, a defect in materials or workmanship of, or damage
1816		-	caused by normal wear to a structural component, an appliance, or an
1817		-	electrical, plumbing, heating, cooling, or air-conditioning system
1818		-	of a residential property that is attached to or located on the
1819		-	residential property:
1820		-	(A) service, maintain, repair, or replace all or
1821		-	any part of the structural component, appliance, or electrical,
1822		-	plumbing, heating, cooling, or air-conditioning system;
1823		-	(B) provide incidental payment of indemnity
1824		-	under limited circumstances, including food spoilage; or
1825		-	(C) provide reimbursement or payment instead of
1826		-	service, repair, or replacement when a part, structural component,
1827		-	appliance, or service provider or technician is unavailable.
1828		-	SECTION 4.03. Section 1304.003(b), Occupations Code, is
1829		-	amended to read as follows:
1830		-	(b) A service contract described by Subsection (a)(2)(A)
1831		-	may [also] provide for:
1832		-	(1) incidental payment or indemnity under limited
1833		-	circumstances, including towing, rental, and emergency road
1834		-	service;
1835		-	(2) the repair or replacement of a product for damage
1836		-	resulting from a power surge or for accidental damage incurred in
1837		-	handling the product;
1838		-	(3) identity recovery, if the service contract is
1839		-	financed under Chapter 348 or 353, Finance Code; or
1840		-	(4) the replacement of a motor vehicle key or key fob
1841		-	in the event the key or key fob is inoperable, lost, or stolen.
1842		-	SECTION 4.04. Section 1304.004(b), Occupations Code, is
1843		-	amended to read as follows:
1844		-	(b) This chapter does not apply to:
1845		-	(1) a warranty;
1846		-	(2) a maintenance agreement;
1847		-	(3) a service contract sold or offered for sale to a
1848		-	person who is not a consumer;
1849		-	(4) [a residential service contract sold by an entity
1850		-	licensed by the Texas Real Estate Commission under Chapter 1303;
1851		-	[(5)] an agreement issued by an automobile service club
1852		-	that holds a certificate of authority under Chapter 722,
1853		-	Transportation Code;
1854		-	(5) [(6)] a service contract sold by a motor vehicle
1855		-	dealer on a motor vehicle sold by that dealer, if the dealer:
1856		-	(A) is the provider;
1857		-	(B) is licensed as a motor vehicle dealer under
1858		-	Chapter 2301; and
1859		-	(C) covers its obligations under the service
1860		-	contract with a reimbursement insurance policy; or
1861		-	(6) [(7)] a contract offered by a local exchange
1862		-	telephone company that provides for the repair of inside telephone
1863		-	wiring, if:
1864		-	(A) the contract term does not exceed one month;
1865		-	and
1866		-	(B) the consumer can terminate the contract
1867		-	before a new contract term begins without liability except for
1868		-	payment of charges for the term that has begun.
1869		-	SECTION 4.05. Subchapter A, Chapter 1304, Occupations Code,
1870		-	is amended by adding Section 1304.0041 to read as follows:
1871		-	Sec. 1304.0041. CERTAIN EXEMPT AGREEMENTS. This chapter
1872		-	does not apply to:
1873		-	(1) a performance guarantee offered by:
1874		-	(A) the builder of a residential property; or
1875		-	(B) the manufacturer or seller of an appliance or
1876		-	other system or component of a residential property;
1877		-	(2) a residential service contract executed before
1878		-	August 28, 1979;
1879		-	(3) a guarantee or warranty that is:
1880		-	(A) designed to guarantee or warrant the repair
1881		-	or service of an appliance, system, or component of a residential
1882		-	property; and
1883		-	(B) issued by a person who sells, services,
1884		-	repairs, or replaces the appliance, system, or component at the
1885		-	time or before the guarantee or warranty is issued;
1886		-	(4) a service or maintenance agreement or a warranty
1887		-	that:
1888		-	(A) is sold, offered for sale, or issued by a
1889		-	manufacturer or merchant who manufactures or sells a product or
1890		-	part of a product, including a structural component, an appliance,
1891		-	or an electrical, plumbing, heating, cooling, or air-conditioning
1892		-	system of a building or residence; and
1893		-	(B) provides for, warrants, or guarantees the
1894		-	maintenance, repair, replacement, or performance of the product or
1895		-	part of the product; or
1896		-	(5) home warranty insurance as defined by Section
1897		-	2005.001, Insurance Code.
1898		-	SECTION 4.06. Section 1304.005, Occupations Code, is
1899		-	amended to read as follows:
1900		-	Sec. 1304.005. EXEMPTIONS FROM CERTAIN OTHER LAWS.
1901		-	Marketing, selling, offering for sale, issuing, making, proposing
1902		-	to make, and administering a service contract are exempt from:
1903		-	(1) [Chapter 1303;
1904		-	[(2)] Chapter 722, Transportation Code; and
1905		-	(2) [(3)] the Insurance Code and other laws of this
1906		-	state regulating the business of insurance.
1907		-	SECTION 4.07. Section 1304.151, Occupations Code, is
1908		-	amended by amending Subsection (b) and adding Subsection (b-4) to
1909		-	read as follows:
1910		-	(b) If the provider ensures its obligations under
1911		-	Subsection (a)(2), the amount maintained in the reserve account may
1912		-	not be less than an amount equal to 40 percent of the gross
1913		-	consideration the provider received from consumers from the sale of
1914		-	all service contracts issued and outstanding in this state, minus
1915		-	any claims paid. The executive director may review and examine the
1916		-	reserve account. Except as provided by Subsections [Subsection]
1917		-	(b-1) and (b-4), the amount of the security deposit may not be less
1918		-	than $250,000. The provider must submit to the executive director
1919		-	on request a copy of the provider's financial statements that must
1920		-	be prepared in accordance with generally accepted accounting
1921		-	principles, be without qualification as to the going concern status
1922		-	of the provider, and be audited by an independent certified public
1923		-	accountant. The commission by rule may require the provider to
1924		-	submit additional financial reports.
1925		-	(b-4) The amount of the security deposit required under
1926		-	Subsection (b) may not be less than $25,000 for a provider of a
1927		-	residential service contract.
1928		-	SECTION 4.08. Section 1304.156, Occupations Code, is
1929		-	amended by adding Subsection (f) to read as follows:
1930		-	(f) A residential service contract must state that the
1931		-	provider agrees that, under normal circumstances, the provider will
1932		-	initiate the performance of services not later than 48 hours after
1933		-	the contract holder requests the services.
1934		-	SECTION 4.09. Subchapter D, Chapter 1304, Occupations Code,
1935		-	is amended by adding Section 1304.157 to read as follows:
1936		-	Sec. 1304.157. RESIDENTIAL SERVICE CONTRACTS. (a) A
1937		-	person may not sell, offer to sell, arrange or solicit the sale of,
1938		-	or receive an application for a residential service contract unless
1939		-	the person is:
1940		-	(1) employed by a provider or administrator of a
1941		-	residential service contract who is licensed under this chapter; or
1942		-	(2) licensed as a real estate sales agent, real estate
1943		-	broker, mobile home dealer, or insurance agent in this state.
1944		-	(b) Notwithstanding Subsection (a), a person compensated by
1945		-	a provider or administrator, but who is not employed by that
1946		-	provider or administrator, may sell, offer to sell, arrange or
1947		-	solicit the sale of, or receive an application for a residential
1948		-	service contract if the contract contains the following statement
1949		-	in at least 10-point boldface type: "NOTICE: THIS COMPANY PAYS
1950		-	PERSONS NOT EMPLOYED BY THE PROVIDER FOR THE SALE, ADVERTISING,
1951		-	INSPECTION, OR PROCESSING OF A RESIDENTIAL SERVICE CONTRACT UNDER
1952		-	CHAPTER 1304, OCCUPATIONS CODE." For purposes of Subsection (a) and
1953		-	this subsection, a person is employed by a provider or
1954		-	administrator if, in connection with the person selling, offering
1955		-	to sell, arranging or soliciting the sale of, or receiving
1956		-	applications for residential service contracts, the provider or
1957		-	administrator:
1958		-	(1) directs and controls the person's performance; and
1959		-	(2) is responsible for representations made by the
1960		-	person when acting within the scope of the person's employment.
1961		-	(c) Notwithstanding Section 1304.151(a)(1), a provider of a
1962		-	residential service contract may use a reimbursement insurance
1963		-	policy issued by a captive insurance company as defined by Section
1964		-	964.001, Insurance Code, to insure the provider's residential
1965		-	service contracts if the provider maintains a funded reserve equal
1966		-	to not less than 25 percent of the gross consideration the provider
1967		-	received from consumers from the sale of all the provider's service
1968		-	contracts issued and outstanding in this state, minus any claims
1969		-	paid. A reimbursement insurance policy issued to a residential
1970		-	service contract provider in accordance with this subsection:
1971		-	(1) is not subject to Section 1304.152; and
1972		-	(2) is considered to satisfy the requirements of
1973		-	Sections 1304.1025 and 1304.151(a)(1) for purposes of this chapter.
1974		-	SECTION 4.10. Chapter 1303, Occupations Code, is repealed.
1975		-	SECTION 4.11. Not later than June 1, 2022, the Texas
1976		-	Commission of Licensing and Regulation shall adopt rules necessary
1977		-	to implement the changes in law made by this article to Chapter
1978		-	1304, Occupations Code.
1979		-	SECTION 4.12. (a) A residential service company licensed
1980		-	under former Chapter 1303, Occupations Code, that on May 1, 2021,
1981		-	maintained security in accordance with former Section 1303.154,
1982		-	Occupations Code, shall continue to maintain security in an amount
1983		-	not less than the amount required under that section until
1984		-	September 1, 2026, and the former law is continued in effect for
1985		-	that purpose.
1986		-	(b) A residential service company described by Subsection
1987		-	(a) of this section that is operating as a residential service
1988		-	contract provider licensed under Chapter 1304, Occupations Code, as
1989		-	amended by this article, is not required to comply with the security
1990		-	requirements for residential service contract providers under
1991		-	Chapter 1304, Occupations Code, as amended by this article, until
1992		-	September 1, 2026.
1993		-	(c) Not later than September 1, 2022, a residential service
1994		-	company described by Subsection (a) of this section that is
1995		-	operating as a residential service contract provider licensed under
1996		-	Chapter 1304, Occupations Code, as amended by this article, shall
1997		-	update the company's financial security documents to:
1998		-	(1) list the Texas Department of Licensing and
1999		-	Regulation as a party to the financial security document; and
2000		-	(2) replace each reference to the Texas Real Estate
2001		-	Commission with a reference to the Texas Department of Licensing
2002		-	and Regulation.
2003		-	SECTION 4.13. (a) In this section, "department" means the
2004		-	Texas Department of Licensing and Regulation.
2005		-	(b) On the effective date of this Act:
2006		-	(1) a license issued by the Texas Real Estate
2007		-	Commission under former Chapter 1303, Occupations Code, is
2008		-	continued in effect as a license of the department;
2009		-	(2) all rules, fees, policies, procedures, decisions,
2010		-	and forms of the Texas Real Estate Commission that relate to a
2011		-	program or activity transferred under this article are continued in
2012		-	effect as rules, fees, policies, procedures, decisions, and forms
2013		-	of the Texas Commission of Licensing and Regulation or the
2014		-	department, as applicable, and remain in effect until changed by
2015		-	the Texas Commission of Licensing and Regulation or the department;
2016		-	and
2017		-	(3) a complaint, investigation, contested case, or
2018		-	other proceeding related to a program that is transferred under
2019		-	this article and that is pending on the effective date of this Act
2020		-	is transferred without change in status to the Texas Commission of
2021		-	Licensing and Regulation or the department, as appropriate.
2022		-	(c) On the effective date of this Act:
2023		-	(1) all money, contracts, leases, property, software
2024		-	source code and documentation, records, and obligations of the
2025		-	Texas Real Estate Commission relating to a program or activity
2026		-	transferred to the department under this article are transferred to
2027		-	the department; and
2028		-	(2) the unexpended and unobligated balance of any
2029		-	money appropriated by the legislature relating to that program or
2030		-	activity is transferred to the department.
2031		-	(d) As soon as practicable after the effective date of this
2032		-	Act, the Texas Real Estate Commission shall transfer to the Texas
2033		-	Commission of Licensing and Regulation or the department, as
2034		-	appropriate, any bond, reimbursement insurance policy, or other
2035		-	security held for a residential service company that relates to a
2036		-	program or activity transferred under this article.
2037		-	(e) Unless the context indicates otherwise, a reference in
2038		-	law or administrative rule to the Texas Real Estate Commission with
2039		-	respect to a program or activity transferred from the Texas Real
2040		-	Estate Commission to the department under this article means the
2041		-	Texas Commission of Licensing and Regulation or the department, as
2042		-	appropriate.
2043		-	(f) The Texas Real Estate Commission shall provide the
2044		-	department with access to any systems, facilities, or information
2045		-	necessary to implement the change in law made by this article.
2046		-	ARTICLE 5. DRIVER TRAINING
2047		-	SECTION 5.01. Section 1001.001, Education Code, is amended
	1787	+	ARTICLE 4. DRIVER TRAINING
	1788	+	SECTION 4.01. Section 1001.001, Education Code, is amended
2048	1789		by amending Subdivisions (2), (8), (9), (13), and (14) and adding
2049	1790		Subdivisions (6-a), (6-b), (14-b), and (14-c) to read as follows:
2050	1791		(2) "Classroom instruction" includes instruction
2051	1792		provided in a traditional classroom setting or through other
2052	1793		physical means or remotely through the Internet ["Approved driving
2053	1794		safety course" means a driving safety course approved by the
2054	1795		department].
2055	1796		(6-a) "Driver education instructor" means an
2056	1797		individual who holds a license to teach or provide driver education
2057	1798		issued under Section 1001.251.
2058	1799		(6-b) "Driver education provider" means an in-person
2059	1800		driver education provider, an online driver education provider, or
2060	1801		a parent-taught driver education provider.
2061	1802		(8) "Driver training" means:
2062	1803		(A) driver education provided by a driver
2063	1804		education provider [school]; or
2064	1805		(B) driving safety training provided by a driving
2065	1806		safety provider [school].
2066	1807		(9) "Driver training provider [school]" means a driver
2067	1808		education provider [school] or driving safety provider [school].
2068	1809		(13) "Driving safety provider" means a business that
2069	1810		provides a driving safety course [school" means an enterprise that:
2070	1811		[(A) maintains a place of business or solicits
2071	1812		business in this state; and
2072	1813		[(B) is operated by an individual, association,
2073	1814		partnership, or corporation for educating and training persons in
2074	1815		driving safety].
2075	1816		(14) "In-person driver education provider
2076	1817		[Instructor]" means a business that provides driver education
2077	1818		courses in person, including behind-the-wheel instruction,
2078	1819		observation instruction, or driver's license examinations [an
2079	1820		individual who holds a license for the type of instruction being
2080	1821		given].
2081	1822		(14-b) "Online driver education provider" means a
2082	1823		business that provides driver education courses to students
2083	1824		remotely through the Internet.
2084	1825		(14-c) "Parent-taught driver education provider"
2085	1826		means a business that provides driver education course materials
2086	1827		through physical means or remotely through the Internet to persons
2087	1828		who conduct parent-taught driver education under Section 1001.112.
2088		-	SECTION 5.02. Section 1001.003, Education Code, is amended
	1829	+	SECTION 4.02. Section 1001.003, Education Code, is amended
2089	1830		to read as follows:
2090	1831		Sec. 1001.003. LEGISLATIVE INTENT REGARDING SMALL
2091	1832		BUSINESSES. It is the intent of the legislature that commission
2092	1833		rules that affect driver training providers [schools] that qualify
2093	1834		as small businesses be adopted and administered so as to have the
2094	1835		least possible adverse economic effect on the providers [schools].
2095		-	SECTION 5.03. Section 1001.004(b), Education Code, is
	1836	+	SECTION 4.03. Section 1001.004(b), Education Code, is
2096	1837		amended to read as follows:
2097	1838		(b) The department may charge a fee to each driver education
2098	1839		provider [school] in an amount not to exceed the actual expense
2099	1840		incurred in the regulation of driver education courses established
2100	1841		under Section 1001.1015.
2101		-	SECTION 5.04. Subchapter A, Chapter 1001, Education Code,
2102		-	is amended by adding Section 1001.005 to read as follows:
2103		-	Sec. 1001.005. REFERENCE IN RULES AND AGENCY MATERIALS.
2104		-	Notwithstanding any other law, the commission or the department may
2105		-	refer to driver education providers and driver safety providers as
2106		-	schools in rules, forms, records, licenses, and other commission or
2107		-	department documents.
2108		-	SECTION 5.05. Section 1001.051, Education Code, is amended
	1842	+	SECTION 4.04. Section 1001.051, Education Code, is amended
2109	1843		to read as follows:
2110	1844		Sec. 1001.051. JURISDICTION OVER PROVIDERS [SCHOOLS]. The
2111	1845		department has jurisdiction over and control of driver training
2112	1846		providers [schools] regulated under this chapter.
2113		-	SECTION 5.06. Sections 1001.053(a) and (b), Education Code,
	1847	+	SECTION 4.05. Sections 1001.053(a) and (b), Education Code,
2114	1848		are amended to read as follows:
2115	1849		(a) The department and executive director, as appropriate,
2116	1850		shall:
2117	1851		(1) administer this chapter;
2118	1852		(2) enforce minimum standards for driver training
2119	1853		providers [schools] under this chapter;
2120	1854		(3) enforce rules adopted by the commission that are
2121	1855		necessary to administer this chapter; and
2122	1856		(4) inspect a driver training provider [school or
2123	1857		course provider] and reinspect the [school or course] provider for
2124	1858		compliance with this chapter.
2125	1859		(b) The executive director may designate a person
2126	1860		knowledgeable in the administration of regulating driver training
2127	1861		providers [schools] to administer this chapter.
2128		-	SECTION 5.07. Section 1001.054, Education Code, is amended
	1862	+	SECTION 4.06. Section 1001.054, Education Code, is amended
2129	1863		to read as follows:
2130	1864		Sec. 1001.054. RULES RESTRICTING ADVERTISING. [(c)] The
2131	1865		commission by rule may restrict advertising by a branch location of
2132	1866		an in-person [a] driver education provider [training school] so
2133	1867		that the location adequately identifies the main business [primary]
2134	1868		location of the provider [school] in a solicitation.
2135		-	SECTION 5.08. Sections 1001.055(a), (a-1), and (a-2),
	1869	+	SECTION 4.07. Sections 1001.055(a), (a-1), and (a-2),
2136	1870		Education Code, are amended to read as follows:
2137	1871		(a) The department shall provide to each licensed driver
2138	1872		education provider or exempt driver education school [and to each
2139	1873		parent-taught course provider approved under this chapter] driver
2140	1874		education certificates or certificate numbers to enable the [school
2141	1875		or approved parent-taught course] provider or school to issue
2142	1876		department-approved driver education certificates to certify
2143	1877		completion of an approved driver education course and satisfy the
2144	1878		requirements of Sections 521.204(a)(2), Transportation Code,
2145	1879		521.1601, Transportation Code, as added by Chapter 1253 (H.B. 339),
2146	1880		Acts of the 81st Legislature, Regular Session, 2009, and 521.1601,
2147	1881		Transportation Code, as added by Chapter 1413 (S.B. 1317), Acts of
2148	1882		the 81st Legislature, Regular Session, 2009.
2149	1883		(a-1) A certificate issued by a driver education [school or
2150	1884		parent-taught course] provider licensed [approved] under this
2151	1885		chapter must:
2152	1886		(1) be in a form required by the department; and
2153	1887		(2) include an identifying certificate number
2154	1888		provided by the department that may be used to verify the
2155	1889		authenticity of the certificate with the [driver education school
2156	1890		or approved parent-taught course] provider.
2157	1891		(a-2) A driver education [school or parent-taught course]
2158	1892		provider licensed [approved] under this chapter that purchases
2159	1893		driver education certificate numbers shall issue original and
2160	1894		duplicate certificates in a manner that, to the greatest extent
2161	1895		possible, prevents the unauthorized production or the misuse of the
2162	1896		certificates. The [driver education school or approved
2163	1897		parent-taught course] provider shall electronically submit to the
2164	1898		department in the manner established by the department data
2165	1899		identified by the department relating to issuance of
2166	1900		department-approved driver education certificates with the
2167	1901		certificate numbers.
2168		-	SECTION 5.09. Sections 1001.056(b), (c-1), (d), (e), and
	1902	+	SECTION 4.08. Sections 1001.056(b), (c-1), (d), (e), and
2169	1903		(g), Education Code, are amended to read as follows:
2170	1904		(b) The department shall provide each licensed driving
2171	1905		safety [course] provider with course completion certificate
2172	1906		numbers to enable the provider to issue department-approved uniform
2173	1907		certificates of course completion.
2174	1908		(c-1) A driving safety [course] provider shall provide for
2175	1909		the issuance of original and duplicate certificates in a manner
2176	1910		that, to the greatest extent possible, prevents the unauthorized
2177	1911		production or the misuse of the certificates.
2178	1912		(d) A certificate under this section must:
2179	1913		(1) be in a form required by the department; and
2180	1914		(2) include an identifying number by which the
2181	1915		department, a court, or the Department of Public Safety may verify
2182	1916		its authenticity with the driving safety [course] provider.
2183	1917		(e) The commission by rule shall establish a fee for each
2184	1918		course completion certificate number. [A course provider that
2185	1919		supplies a certificate to an operator shall collect from the
2186	1920		operator a fee equal to the amount of the fee paid to the department
2187	1921		for the certificate number.]
2188	1922		(g) A driving safety [course] provider shall issue a
2189	1923		duplicate certificate by United States mail or commercial or
2190	1924		electronic delivery. The commission by rule shall determine the
2191	1925		amount of the fee for issuance of a duplicate certificate under this
2192	1926		subsection.
2193		-	SECTION 5.10. Section 1001.058(b), Education Code, is
	1927	+	SECTION 4.09. Section 1001.058(b), Education Code, is
2194	1928		amended to read as follows:
2195	1929		(b) The advisory committee consists of nine [eleven]
2196	1930		members appointed for staggered six-year terms by the presiding
2197	1931		officer of the commission, with the approval of the commission, as
2198	1932		follows:
2199	1933		(1) three driver education providers [one member
2200	1934		representing a driver education school that offers a traditional
2201	1935		classroom course and in-car training];
2202	1936		(2) three driving safety providers [one member
2203	1937		representing a driver education school that offers a traditional
2204	1938		classroom course, alternative methods of instruction, or in-car
2205	1939		training];
2206	1940		(3) [one member representing a driving safety school
2207	1941		offering a traditional classroom course or providing an alternative
2208	1942		method of instruction;
2209	1943		[(4) one member representing a driving safety course
2210	1944		provider approved for a traditional classroom course and for an
2211	1945		alternative method of instruction;
2212	1946		[(5) one member representing a driving safety course
2213	1947		provider approved for a traditional classroom course or for an
2214	1948		alternative method of instruction;
2215	1949		[(6)] one driver education [licensed] instructor;
2216	1950		(4) the division head [(7) one representative] of the
2217	1951		Department of Public Safety driver license division or the division
2218	1952		head's designee;
2219	1953		[(8) one member representing a drug and alcohol
2220	1954		driving awareness program course provider;
2221	1955		[(9) one member representing a parent-taught course
2222	1956		provider;] and
2223	1957		(5) one member of [(10) two members representing] the
2224	1958		public.
2225		-	SECTION 5.11. Section 1001.059(b), Education Code, is
	1959	+	SECTION 4.10. Section 1001.059(b), Education Code, is
2226	1960		amended to read as follows:
2227	1961		(b) The department may collaborate with another state
2228	1962		agency or contract with a licensed driver education provider
2229	1963		[school] or a driver education instructor to create the course.
2230		-	SECTION 5.12. Subchapter B, Chapter 1001, Education Code,
	1964	+	SECTION 4.11. Subchapter B, Chapter 1001, Education Code,
2231	1965		is amended by adding Section 1001.060 to read as follows:
2232	1966		Sec. 1001.060. COORDINATION WITH DEPARTMENT OF PUBLIC
2233	1967		SAFETY. (a) The department shall enter into a memorandum of
2234	1968		understanding with the Department of Public Safety for:
2235	1969		(1) the interagency development of the content of
2236	1970		driver's license examinations and examination reference materials;
2237	1971		and
2238	1972		(2) any other matter the agencies consider
2239	1973		appropriate.
2240	1974		(b) The memorandum of understanding must authorize the
2241	1975		Department of Public Safety to share with the department any
2242	1976		relevant information, including information related to examination
2243	1977		results.
2244		-	SECTION 5.13. The heading to Subchapter C, Chapter 1001,
	1978	+	SECTION 4.12. The heading to Subchapter C, Chapter 1001,
2245	1979		Education Code, is amended to read as follows:
2246	1980		SUBCHAPTER C. [OPERATION OF] DRIVER EDUCATION AND DRIVING SAFETY
2247	1981		CURRICULUM [SCHOOL]
2248		-	SECTION 5.14. Section 1001.101, Education Code, is amended
	1982	+	SECTION 4.13. Section 1001.101, Education Code, is amended
2249	1983		to read as follows:
2250	1984		Sec. 1001.101. ADULT AND MINOR DRIVER EDUCATION COURSE
2251	1985		CURRICULUM AND TEXTBOOKS. (a) The commission by rule shall
2252	1986		establish or approve the curriculum and designate the educational
2253	1987		materials to be used in a driver education course for minors and
2254	1988		adults, including a driver education course conducted by a school
2255	1989		district, driver education provider [school], or parent or other
2256	1990		individual under this chapter.
2257	1991		(b) The commission by rule shall prescribe the minimum
2258	1992		number of hours of classroom instruction, observation instruction,
2259	1993		and behind-the-wheel instruction that must be completed for a [A]
2260	1994		driver education course to be approved under this chapter [must
2261	1995		require the student to complete:
2262	1996		[(1) 7 hours of behind-the-wheel instruction in the
2263	1997		presence of a person who holds a driver education instructor
2264	1998		license or who meets the requirements for a driver education course
2265	1999		conducted by a parent or other individual under Section 1001.112;
2266	2000		[(2) 7 hours of observation instruction in the
2267	2001		presence of a person who holds a driver education instructor
2268	2002		license or who meets the requirements for a driver education course
2269	2003		conducted by a parent or other individual under Section 1001.112;
2270	2004		and
2271	2005		[(3) 30 hours of behind-the-wheel instruction,
2272	2006		including at least 10 hours of instruction that takes place at
2273	2007		night, in the presence of an adult who meets the requirements of
2274	2008		Section 521.222(d)(2), Transportation Code].
2275		-	SECTION 5.15. Sections 1001.1015(b) and (d), Education
	2009	+	SECTION 4.14. Sections 1001.1015(b) and (d), Education
2276	2010		Code, are amended to read as follows:
2277	2011		(b) A driver education course under Subsection (a) must:
2278	2012		(1) provide at least the minimum number of hours of
2279	2013		classroom instruction required by commission rule [be a six-hour
2280	2014		course]; and
2281	2015		(2) include instruction in:
2282	2016		(A) alcohol and drug awareness;
2283	2017		(B) the traffic laws of this state;
2284	2018		(C) highway signs, signals, and markings that
2285	2019		regulate, warn, or direct traffic; and
2286	2020		(D) the issues commonly associated with motor
2287	2021		vehicle accidents, including poor decision-making, risk taking,
2288	2022		impaired driving, distraction, speed, failure to use a safety belt,
2289	2023		driving at night, failure to yield the right-of-way, and using a
2290	2024		wireless communication device while operating a vehicle.
2291	2025		(d) A driving safety course [or a drug and alcohol driving
2292	2026		awareness program] may not be approved as a driver education course
2293	2027		under Subsection (a).
2294		-	SECTION 5.16. Sections 1001.1016(b) and (c), Education
	2028	+	SECTION 4.15. Sections 1001.1016(b) and (c), Education
2295	2029		Code, are amended to read as follows:
2296	2030		(b) The commission by rule shall require an in-person [a]
2297	2031		driver education provider or online driver education provider
2298	2032		[school providing a driver education course] to:
2299	2033		(1) in the manner described by the Americans with
2300	2034		Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), make
2301	2035		reasonable modifications and provide aids and services when
2302	2036		providing the classroom instruction portion of a driver education
2303	2037		[the] course that are necessary to ensure that a student who is deaf
2304	2038		or hard of hearing may fully participate in the course; and
2305	2039		(2) provide to the department the provider's
2306	2040		[school's] plan for complying with the rules adopted under this
2307	2041		section as a condition of obtaining a license under Section
2308	2042		1001.211 or renewing a license [under Section 1001.303].
2309	2043		(c) The rules adopted under Subsection (b) must allow an
2310	2044		in-person [a] driver education provider or online driver education
2311	2045		provider [school] to comply with the requirements of this section
2312	2046		by playing a video that presents the classroom instruction portion
2313	2047		of the driver education course in a manner that complies with the
2314	2048		requirements of this section.
2315		-	SECTION 5.17. Subchapter C, Chapter 1001, Education Code,
	2049	+	SECTION 4.16. Subchapter C, Chapter 1001, Education Code,
2316	2050		is amended by adding Section 1001.1017 to read as follows:
2317	2051		Sec. 1001.1017. COURSE APPROVAL. A driver training
2318	2052		provider shall submit to the commission for approval the course
2319	2053		length and curriculum content for each course offered by the
2320	2054		provider. The provider may implement a course length and
2321	2055		curriculum content only after approval by the commission.
2322		-	SECTION 5.18. Section 1001.112, Education Code, is amended
	2056	+	SECTION 4.17. Section 1001.112, Education Code, is amended
2323	2057		to read as follows:
2324	2058		Sec. 1001.112. PARENT-TAUGHT DRIVER EDUCATION. (a) A
2325	2059		person who is eligible under Subsection (b) may conduct [The
2326	2060		commission by rule shall provide for approval of] a driver
2327	2061		education course approved under Section 1001.1017 for another
2328	2062		[conducted by the following persons with the noted relationship to
2329	2063		a] person who is required to complete a driver education course to
2330	2064		obtain a Class C license. In conducting the course, the person must
2331	2065		use course materials provided by a parent-taught driver education
2332	2066		provider.
2333	2067		(b) A person is eligible to conduct a driver education
2334	2068		course for another person as provided by Subsection (a) if the
2335	2069		person:
2336	2070		(1) is either:
2337	2071		(A) a parent, stepparent, foster parent, legal
2338	2072		guardian, grandparent, or step-grandparent of the other person; or
2339	2073		(B) [(2)] an individual who:
2340	2074		(i) [(A)] has been designated on a form
2341	2075		prescribed by the department for purposes of this section by a
2342	2076		parent or[, a] legal guardian of the other person[,] or by a judge
2343	2077		of a court with jurisdiction over the other person [on a form
2344	2078		prescribed by the department];
2345	2079		(ii) [(B)] is at least 25 years of age [or
2346	2080		older];
2347	2081		(iii) [(C)] does not charge a fee for
2348	2082		conducting the course; and
2349	2083		(iv) [(D)] has at least seven years of
2350	2084		driving experience;
2351	2085		(2) has possessed [and
2352	2086		[(E) otherwise qualifies to conduct a course
2353	2087		under Subsection (a-1).
2354	2088		[(a-1) The rules must provide that the student driver spend
2355	2089		a minimum number of hours in classroom and behind-the-wheel
2356	2090		instruction.
2357	2091		[(a-2) The rules must provide that the person conducting the
2358	2092		course:
2359	2093		[(1) possess] a valid license for the preceding three
2360	2094		years that has not been suspended, revoked, or forfeited in the past
2361	2095		three years for an offense that involves the operation of a motor
2362	2096		vehicle;
2363	2097		(3) [(2)] has not been convicted of:
2364	2098		(A) criminally negligent homicide; or
2365	2099		(B) driving while intoxicated in the past seven
2366	2100		years; and
2367	2101		(4) [(3)] has not been convicted during the preceding
2368	2102		three years of:
2369	2103		(A) three or more moving violations described by
2370	2104		Section 542.304, Transportation Code, including violations that
2371	2105		resulted in an accident; or
2372	2106		(B) two or more moving violations described by
2373	2107		Section 542.304, Transportation Code, that resulted in an accident.
2374	2108		(c) A person conducting a driver education course under this
2375	2109		section may provide the classroom instruction portion, the
2376	2110		behind-the-wheel instruction portion, or both portions.
2377	2111		(d) [(b)] The department may [approve a course described by
2378	2112		Subsection (a) if the department determines that the course
2379	2113		materials are at least equal to those required in a course approved
2380	2114		by the department, and the department may] not require for a course
2381	2115		conducted under this section that:
2382	2116		(1) the classroom instruction be provided in a room
2383	2117		with particular characteristics or equipment; or
2384	2118		(2) the vehicle used for the behind-the-wheel
2385	2119		instruction have equipment other than the equipment otherwise
2386	2120		required by law for operation of the vehicle on a highway while the
2387	2121		vehicle is not being used for driver training.
2388	2122		(e) A parent-taught driver education provider [(c) The
2389	2123		rules must provide a method by which:
2390	2124		[(1) approval of a course is obtained;
2391	2125		[(2) an applicant submits proof of completion of the
2392	2126		course;
2393	2127		[(3) approval for delivering course materials by an
2394	2128		alternative method, including electronic means, is obtained;
2395	2129		[(4) a provider of a course approved under this
2396	2130		section] may administer to an applicant the highway sign and
2397	2131		traffic law parts of the examination as provided by Section
2398	2132		521.1655(a-1), Transportation Code, through electronic means[; and
2399	2133		[(5) an applicant submits proof of passage of an
2400	2134		examination administered under Subdivision (4)].
2401	2135		(f) [(d) Completion of a driver education course approved
2402	2136		under this section has the same effect under this chapter as
2403	2137		completion of a driver education course approved by the department.
2404	2138		[(e)] The department may not charge a fee for the submission
2405	2139		of proof of:
2406	2140		(1) completion of a [the] course conducted under this
2407	2141		section; or
2408	2142		(2) passage of an examination administered under
2409	2143		Subsection (e) [(c)].
2410		-	SECTION 5.19. Sections 1001.151(b) and (c), Education Code,
	2144	+	SECTION 4.18. Sections 1001.151(b) and (c), Education Code,
2411	2145		are amended to read as follows:
2412	2146		(b) The commission by rule shall establish a fee for:
2413	2147		(1) an initial in-person driver education provider
2414	2148		[school] license and for each branch location;
2415	2149		(2) an initial online driver education provider
2416	2150		[driving safety school] license;
2417	2151		(3) an initial parent-taught driver education
2418	2152		[course] provider license[, except that the executive director may
2419	2153		waive the fee];
2420	2154		(4) an initial driving safety provider license;
2421	2155		(5) the annual renewal for a [course provider,]
2422	2156		driving safety provider [school], driver education provider
2423	2157		[school], or branch location of an in-person driver education
2424	2158		provider, except that the executive director may waive the fee if
2425	2159		revenue generated by the issuance of course completion certificate
2426	2160		numbers and driver education certificates is sufficient to cover
2427	2161		the cost of administering this chapter and Article 45.0511, Code of
2428	2162		Criminal Procedure;
2429	2163		(6) [(5)] a change of address of a driver education
2430	2164		provider [school, driving safety school,] or driving safety
2431	2165		[course] provider; and
2432	2166		(7) [(6)] a change of name of:
2433	2167		(A) a driver education [school or course]
2434	2168		provider or an owner of a driver education [school or course]
2435	2169		provider; or
2436	2170		(B) a driving safety provider [school] or an
2437	2171		owner of a driving safety provider [school;
2438	2172		[(7) each additional driver education or driving
2439	2173		safety course at a driver training school; and
2440	2174		[(8) an initial application for approval of a driving
2441	2175		safety course that has not been evaluated by the department].
2442	2176		(c) An application for an initial driver education [or
2443	2177		driving safety] instructor license must be accompanied by a
2444	2178		processing fee and an annual license fee, except that the
2445	2179		department may not collect the processing fee from an applicant
2446	2180		[for a driver education instructor license] who is currently
2447	2181		teaching a driver education course in a public school in this state.
2448		-	SECTION 5.20. The heading to Subchapter E, Chapter 1001,
	2182	+	SECTION 4.19. The heading to Subchapter E, Chapter 1001,
2449	2183		Education Code, is amended to read as follows:
2450	2184		SUBCHAPTER E. LICENSING OF DRIVER TRAINING [SCHOOLS AND COURSE]
2451	2185		PROVIDERS
2452		-	SECTION 5.21. Section 1001.201, Education Code, is amended
	2186	+	SECTION 4.20. Section 1001.201, Education Code, is amended
2453	2187		to read as follows:
2454	2188		Sec. 1001.201. LICENSE REQUIRED. (a) A person may not
2455	2189		provide:
2456	2190		(1) [operate a school that provides] a driver
2457	2191		education course:
2458	2192		(A) in person unless the person holds an
2459	2193		in-person [a] driver education provider [school] license; or
2460	2194		(B) online unless the person holds an online
2461	2195		driver education provider license;
2462	2196		(2) driver education course materials to persons
2463	2197		conducting parent-taught driver education under Section 1001.112
2464	2198		unless the person holds a parent-taught driver education provider
2465	2199		license; or
2466	2200		(3) [operate a school that provides] driving safety
2467	2201		courses unless the person holds a driving safety provider [school]
2468	2202		license[; or
2469	2203		[(3) operate as a course provider unless the person
2470	2204		holds a course provider license].
2471		-	(b) The commission by rule shall provide for the issuance of
2472		-	a single license to a person who meets the requirements for and
2473		-	seeks to provide driver education courses or driver education
2474		-	course materials under more than one driver education provider
2475		-	license.
2476		-	SECTION 5.22. Section 1001.202, Education Code, is amended
	2205	+	(b) The commission by rule shall provide for the issuance
	2206	+	of:
	2207	+	(1) an in-person driver education provider license to
	2208	+	a person who holds an online driver education provider license, a
	2209	+	parent-taught driver education provider license, or both of those
	2210	+	licenses;
	2211	+	(2) an online driver education provider license to a
	2212	+	person who holds an in-person driver education provider license, a
	2213	+	parent-taught driver education provider license, or both of those
	2214	+	licenses; and
	2215	+	(3) a parent-taught driver education provider license
	2216	+	to a person who holds an in-person driver education provider
	2217	+	license, an online driver education provider license, or both of
	2218	+	those licenses.
	2219	+	SECTION 4.21. Section 1001.202, Education Code, is amended
2477	2220		to read as follows:
2478	2221		Sec. 1001.202. LOCATIONS FOR IN-PERSON DRIVER EDUCATION
2479	2222		PROVIDERS. An in-person [(a) A] driver education provider [school]
2480	2223		that teaches a driver education course at one or more branch
2481	2224		locations must obtain a separate in-person driver education
2482	2225		provider [school] license for its main business location and for
2483	2226		each branch location. An in-person [A] driver education provider
2484	2227		[school] may not operate a branch location of a branch location.
2485	2228		[(b) A driving safety school may use multiple classroom
2486	2229		locations to teach a driving safety course if each location is
2487	2230		approved by the department.]
2488		-	SECTION 5.23. Section 1001.204, Education Code, is amended
	2231	+	SECTION 4.22. Section 1001.204, Education Code, is amended
2489	2232		to read as follows:
2490	2233		Sec. 1001.204. REQUIREMENTS FOR DRIVER EDUCATION PROVIDER
2491	2234		[SCHOOL] LICENSE. (a) The commission by rule shall establish the
2492	2235		criteria applicable to each [for a] driver education provider
2493	2236		[school] license.
2494	2237		(b) The department shall approve an application for a driver
2495	2238		education provider [school] license if the application is submitted
2496	2239		on a form approved by the department, the application is
2497	2240		accompanied by the fee, and the department determines that the
2498	2241		applicant [school]:
2499	2242		(1) has courses, curricula, and instruction of a
2500	2243		quality, content, and length that reasonably and adequately achieve
2501	2244		the stated objective for which the courses, curricula, and
2502	2245		instruction are offered;
2503	2246		(2) [has adequate space, equipment, instructional
2504	2247		material, and instructors to provide training of good quality in
2505	2248		the classroom and behind the wheel, if applicable;
2506	2249		[(3) has instructors who have adequate educational
2507	2250		qualifications and experience;
2508	2251		[(4)] provides to each student before enrollment or
2509	2252		each person before contracting for driver education course
2510	2253		materials, to the extent applicable:
2511	2254		(A) a copy of:
2512	2255		(i) the refund policy;
2513	2256		(ii) the schedule of tuition, fees, and
2514	2257		other charges; and
2515	2258		(iii) the regulations relating to absence,
2516	2259		grading policy, and rules of operation and conduct; and
2517	2260		(B) the department's name, mailing address,
2518	2261		telephone number, and Internet website address for the purpose of
2519	2262		directing complaints to the department;
2520	2263		(3) to the extent applicable, [(5)] maintains adequate
2521	2264		records as prescribed by the department to show attendance and
2522	2265		progress or grades and enforces satisfactory standards relating to
2523	2266		attendance, progress, and conduct;
2524	2267		(4) [(6)] on completion of training, issues each
2525	2268		student a certificate indicating the course name and satisfactory
2526	2269		completion;
2527	2270		(5) [(7)] complies with all county, municipal, state,
2528	2271		and federal laws [regulations], including [fire, building, and
2529	2272		sanitation codes and] assumed name registration and other[, if]
2530	2273		applicable requirements;
2531	2274		(6) [(8)] is financially sound and capable of
2532	2275		fulfilling its commitments for training;
2533	2276		(7) [(9)] maintains and publishes as part of its
2534	2277		student enrollment contract or materials contract, as applicable,
2535	2278		the proper policy for the refund of the unused portion of tuition,
2536	2279		fees, and other charges if a student fails to take the course or
2537	2280		withdraws or is discontinued from the provider [school] at any time
2538	2281		before completion;
2539	2282		(8) [(10)] does not use erroneous or misleading
2540	2283		advertising, either by actual statement, omission, or intimation,
2541	2284		as determined by the department;
2542	2285		(9) [(11)] does not use a name similar to the name of
2543	2286		another existing driver education provider [school] or
2544	2287		tax-supported educational institution in this state, unless
2545	2288		specifically approved in writing by the executive director;
2546	2289		(10) [(12)] submits to the department for approval the
2547	2290		applicable course hour lengths and curriculum content for each
2548	2291		course offered by the provider [school];
2549	2292		(11) [(13)] does not owe an administrative penalty for
2550	2293		a violation of this chapter;
2551	2294		(12) meets all requirements applicable to the license
2552	2295		type under Section 1001.2041, 1001.2042, or 1001.2043; and
2553	2296		(13) [(14)] meets any additional criteria required by
2554	2297		the department, including any applicable inspection requirements[;
2555	2298		and
2556	2299		[(15) provides adequate testing and security measures
2557	2300		for the school's method of instruction].
2558		-	SECTION 5.24. Subchapter E, Chapter 1001, Education Code,
	2301	+	SECTION 4.23. Subchapter E, Chapter 1001, Education Code,
2559	2302		is amended by adding Sections 1001.2041, 1001.2042, and 1001.2043
2560	2303		to read as follows:
2561	2304		Sec. 1001.2041. REQUIREMENTS FOR IN-PERSON DRIVER
2562	2305		EDUCATION PROVIDER. Before an in-person driver education provider
2563	2306		license may be issued, the department must determine that the
2564	2307		applicant has adequate space, equipment, instructional material,
2565	2308		and driver education instructors to provide training of good
2566	2309		quality in the classroom and behind the wheel.
2567	2310		Sec. 1001.2042. REQUIREMENTS FOR ONLINE DRIVER EDUCATION
2568	2311		PROVIDER. Before an online driver education provider license may
2569	2312		be issued, the department must determine that the applicant has:
2570	2313		(1) adequate driver education instructors to provide
2571	2314		training of good quality; and
2572	2315		(2) adequate testing and security measures to validate
2573	2316		a student's identity and active participation in a driver education
2574	2317		course.
2575	2318		Sec. 1001.2043. REQUIREMENTS FOR PARENT-TAUGHT DRIVER
2576	2319		EDUCATION PROVIDER. (a) Before a parent-taught driver education
2577	2320		provider license may be issued, the department must determine that
2578	2321		the applicant has:
2579	2322		(1) an adequate method by which a person completing a
2580	2323		parent-taught driver education course under Section 1001.112 using
2581	2324		the provider's course materials may submit proof of:
2582	2325		(A) completion of the course; or
2583	2326		(B) passage of an examination administered by the
2584	2327		provider under Section 1001.112(e);
2585	2328		(2) hired or contracted with only driver education
2586	2329		instructors, if the provider elects to hire or contract with an
2587	2330		instructor to assist with driver education; and
2588	2331		(3) adequate testing and security measures to validate
2589	2332		a student's active participation in a driver education course
2590	2333		conducted using course materials provided remotely through the
2591	2334		Internet.
2592	2335		(b) Except as specifically provided by this chapter, a
2593	2336		parent-taught driver education provider that provides driver
2594	2337		education course materials remotely through the Internet is not
2595	2338		subject to any course or curriculum requirements established by the
2596	2339		commission or department for online driver education providers.
2597		-	SECTION 5.25. Section 1001.206, Education Code, is amended
	2340	+	SECTION 4.24. Section 1001.206, Education Code, is amended
2598	2341		to read as follows:
2599	2342		Sec. 1001.206. REQUIREMENTS FOR DRIVING SAFETY [COURSE]
2600	2343		PROVIDER LICENSE. (a) The commission by rule shall establish
2601	2344		criteria for a driving safety [course] provider license.
2602	2345		(b) The department shall approve an application for a
2603	2346		driving safety [course] provider license if the application is
2604	2347		submitted on a form approved by the executive director, includes
2605	2348		the fee, and [on inspection of the premises of the school] the
2606	2349		department determines that the applicant:
2607	2350		(1) has driving safety courses, curricula, and
2608	2351		instruction of a quality, content, and length that reasonably and
2609	2352		adequately achieve the stated objective for which the courses,
2610	2353		curricula, and instruction are offered [the course provider has an
2611	2354		approved course that at least one licensed driving safety school is
2612	2355		willing to offer];
2613	2356		(2) provides [the course provider has adequate
2614	2357		educational qualifications and experience;
2615	2358		[(3) the course provider will:
2616	2359		[(A) develop and provide] to each student before
2617	2360		enrollment:
2618	2361		(A) [driving safety school that offers the
2619	2362		approved course] a copy of:
2620	2363		(i) the refund policy; [and]
2621	2364		(ii) the schedule of tuition, fees, and
2622	2365		other charges; and
2623	2366		(iii) the regulations relating to absence,
2624	2367		grading policy, and rules of operation and conduct; and
2625	2368		(B) [provide to the driving safety school] the
2626	2369		department's name, mailing address, telephone number, and Internet
2627	2370		website address for the purpose of directing complaints to the
2628	2371		department;
2629	2372		(3) [(4) a copy of the information provided to each
2630	2373		driving safety school under Subdivision (3) will be provided to
2631	2374		each student by the school before enrollment;
2632	2375		[(5)] not later than the 15th working day after the date
2633	2376		a person successfully completes the course, issues [the course
2634	2377		provider will issue] and delivers [deliver] to the person by United
2635	2378		States mail or commercial or electronic delivery a uniform
2636	2379		certificate of course completion indicating the course name and
2637	2380		successful completion;
2638	2381		(4) [(6) the course provider] maintains adequate
2639	2382		records as prescribed by the department to show attendance and
2640	2383		progress or grades and enforces satisfactory standards relating to
2641	2384		attendance, progress, and conduct;
2642	2385		(5) [(7) the course provider] complies with all
2643	2386		county, municipal, state, and federal laws, including assumed name
2644	2387		registration and other applicable requirements;
2645	2388		(6) [(8) the course provider] is financially sound and
2646	2389		capable of fulfilling its commitments for training;
2647	2390		(7) [(9) the course provider] maintains and publishes
2648	2391		as a part of its student enrollment contract the proper policy for
2649	2392		the refund of the unused portion of tuition, fees, and other charges
2650	2393		if a student fails to take the course or withdraws or is
2651	2394		discontinued from the provider [school] at any time before
2652	2395		completion;
2653	2396		(8) [(10) the course provider] does not use erroneous
2654	2397		or misleading advertising, either by actual statement, omission, or
2655	2398		intimation, as determined by the department;
2656	2399		(9) [(11) the course provider] does not use a name
2657	2400		similar to the name of another existing driving safety provider
2658	2401		[school] or tax-supported educational institution in this state,
2659	2402		unless specifically approved in writing by the executive director;
2660	2403		(10) submits to the department for approval the
2661	2404		applicable course hour lengths and curriculum content for each
2662	2405		course offered by the provider;
2663	2406		(11) [(12) the course provider] does not owe an
2664	2407		administrative penalty for a violation of this chapter;
2665	2408		(12) provides adequate testing and security measures
2666	2409		for the provider's method of instruction to validate a student's
2667	2410		identity and active participation in a driving safety course; and
2668	2411		(13) [the course provider] meets any additional
2669	2412		criteria required by the department.
2670		-	SECTION 5.26. Section 1001.207, Education Code, is amended
	2413	+	SECTION 4.25. Section 1001.207, Education Code, is amended
2671	2414		to read as follows:
2672	2415		Sec. 1001.207. BOND REQUIREMENTS: DRIVER EDUCATION
2673	2416		PROVIDER [SCHOOL]. (a) Before a driver education provider
2674	2417		[school] may be issued a license, the provider [school] must file a
2675	2418		corporate surety bond with the department in the amount of:
2676	2419		(1) $10,000 [for the primary location of the school];
2677	2420		and
2678	2421		(2) for an in-person driver education provider, $5,000
2679	2422		for each branch location of the provider.
2680	2423		(b) A bond issued under Subsection (a) must be:
2681	2424		(1) issued in a form approved by the department;
2682	2425		(2) issued by a company authorized to do business in
2683	2426		this state;
2684	2427		(3) payable to the department to be used only for
2685	2428		payment of a refund due to a student or potential student;
2686	2429		(4) conditioned on the compliance of the provider
2687	2430		[school] and its officers, agents, and employees with this chapter
2688	2431		and rules adopted under this chapter; and
2689	2432		(5) issued for a period corresponding to the term of
2690	2433		the license.
2691	2434		(c) Posting of a bond in the amount required under
2692	2435		Subsection (a) satisfies the requirements for financial stability
2693	2436		for driver education providers [schools] under this chapter.
2694	2437		(d) A driver education provider who files a bond under
2695	2438		Subsection (a)(1) or provides an alternate form of security under
2696	2439		Section 1001.210 to obtain one type of driver education provider
2697	2440		license may not be required to file an additional bond under
2698	2441		Subsection (a)(1) or provide an alternate form of security under
2699	2442		Section 1001.210 for any other type of driver education provider
2700	2443		license.
2701		-	SECTION 5.27. Section 1001.209, Education Code, is amended
	2444	+	SECTION 4.26. Section 1001.209, Education Code, is amended
2702	2445		to read as follows:
2703	2446		Sec. 1001.209. BOND REQUIREMENTS: DRIVING SAFETY [COURSE]
2704	2447		PROVIDER. (a) Before a license may be issued to a driving safety
2705	2448		[course] provider, the [course] provider must provide a corporate
2706	2449		surety bond in the amount of $10,000.
2707	2450		(b) A bond issued under Subsection (a) must be:
2708	2451		(1) issued by a company authorized to do business in
2709	2452		this state;
2710	2453		(2) payable to the department to be used:
2711	2454		(A) for payment of a refund due a student of the
2712	2455		[course] provider's approved driving safety courses [course];
2713	2456		(B) to cover the payment of unpaid fees or
2714	2457		penalties assessed by the executive director or the commission; or
2715	2458		(C) to recover any cost associated with providing
2716	2459		course completion certificate numbers, including the cancellation
2717	2460		of certificate numbers;
2718	2461		(3) conditioned on the compliance of the [course]
2719	2462		provider and its officers, agents, and employees with this chapter
2720	2463		and rules adopted under this chapter; and
2721	2464		(4) issued for a period corresponding to the term of
2722	2465		the license.
2723		-	SECTION 5.28. Section 1001.210, Education Code, is amended
	2466	+	SECTION 4.27. Section 1001.210, Education Code, is amended
2724	2467		to read as follows:
2725	2468		Sec. 1001.210. ALTERNATE FORM OF SECURITY. Instead of the
2726	2469		bond required by Section 1001.207 or 1001.209, a driver education
2727	2470		provider [school] or driving safety [course] provider may provide
2728	2471		another form of security that is:
2729	2472		(1) approved by the department; and
2730	2473		(2) in the amount required for a comparable bond under
2731	2474		Section 1001.207 or 1001.209.
2732		-	SECTION 5.29. Sections 1001.211(b) and (c), Education Code,
	2475	+	SECTION 4.28. Sections 1001.211(b) and (c), Education Code,
2733	2476		are amended to read as follows:
2734	2477		(b) A license must be in a form determined by the department
2735	2478		and must show in a clear and conspicuous manner:
2736	2479		(1) the date of issuance, effective date, and term of
2737	2480		the license;
2738	2481		(2) the name and address of the driver training
2739	2482		[school or course] provider;
2740	2483		(3) the authority for and conditions of approval; and
2741	2484		(4) any other fair and reasonable representation that
2742	2485		is consistent with this chapter and that the department considers
2743	2486		necessary.
2744	2487		(c) An applicant may obtain both a driver education provider
2745	2488		[school] license and a driving safety provider [school] license.
2746		-	SECTION 5.30. Sections 1001.213(b), (c), and (d), Education
	2489	+	SECTION 4.29. Sections 1001.213(b), (c), and (d), Education
2747	2490		Code, are amended to read as follows:
2748	2491		(b) If a change in ownership of a driver training [school or
2749	2492		course] provider is proposed, a new owner shall apply for a new
2750	2493		[school or course] provider license at least 30 days before the date
2751	2494		of the change.
2752	2495		(c) The commission by rule may establish fees for a new
2753	2496		driver training [education school or course] provider license under
2754	2497		Subsection (b) and, if applicable, for each branch location of an
2755	2498		in-person driver education provider if:
2756	2499		(1) the new owner is substantially similar to the
2757	2500		previous owner; and
2758	2501		(2) there is no significant change in the management
2759	2502		or control of the [driver education school or course] provider.
2760	2503		(d) The department may inspect a driver training provider's
2761	2504		main [school] or [a] branch location, as applicable, after a change
2762	2505		of ownership.
2763		-	SECTION 5.31. Section 1001.214, Education Code, is amended
	2506	+	SECTION 4.30. Section 1001.214, Education Code, is amended
2764	2507		to read as follows:
2765	2508		Sec. 1001.214. DUPLICATE LICENSE. A duplicate license may
2766	2509		be issued to a driver training [school or course] provider if:
2767	2510		(1) the original license is lost or destroyed; and
2768	2511		(2) an affidavit of that fact is filed with the
2769	2512		department.
2770		-	SECTION 5.32. Section 1001.251(a), Education Code, is
	2513	+	SECTION 4.31. Section 1001.251(a), Education Code, is
2771	2514		amended to read as follows:
2772	2515		(a) Except as authorized under Section 1001.112, a [A]
2773	2516		person may not teach or provide driver education[, either as an
2774	2517		individual or in a driver education school,] or conduct any phase of
2775	2518		driver education[,] unless the person holds a driver education
2776	2519		instructor license issued by the executive director.
2777		-	SECTION 5.33. Section 1001.2511(e), Education Code, is
	2520	+	SECTION 4.32. Section 1001.2511(e), Education Code, is
2778	2521		amended to read as follows:
2779	2522		(e) The commission may adopt rules to administer this
2780	2523		section, including rules establishing:
2781	2524		(1) deadlines for a person to submit fingerprints and
2782	2525		photographs in compliance with this section;
2783	2526		(2) sanctions for a person's failure to comply with the
2784	2527		requirements of this section, including suspension or revocation of
2785	2528		or refusal to issue a license described by Subsection (a); and
2786	2529		(3) notification to a driver education provider
2787	2530		[school] of relevant information obtained by the department under
2788	2531		this section.
2789		-	SECTION 5.34. Section 1001.2512, Education Code, is amended
	2532	+	SECTION 4.33. Section 1001.2512, Education Code, is amended
2790	2533		to read as follows:
2791	2534		Sec. 1001.2512. FEES FOR CRIMINAL HISTORY RECORD
2792	2535		INFORMATION REVIEW. The commission by rule shall require a person
2793	2536		submitting to a national criminal history record information review
2794	2537		under Section 1001.2511 or the driver education provider [school]
2795	2538		employing the person, as determined by the department, to pay a fee
2796	2539		for the review in an amount not to exceed the amount of any fee
2797	2540		imposed on an application for certification under Subchapter B,
2798	2541		Chapter 21, for a national criminal history record information
2799	2542		review under Section 22.0837.
2800		-	SECTION 5.35. Section 1001.2513, Education Code, is amended
	2543	+	SECTION 4.34. Section 1001.2513, Education Code, is amended
2801	2544		to read as follows:
2802	2545		Sec. 1001.2513. CONFIDENTIALITY OF INFORMATION. A social
2803	2546		security number, driver's license number, other identification
2804	2547		number, or fingerprint record collected for a person to comply with
2805	2548		Section 1001.2511:
2806	2549		(1) may not be released except:
2807	2550		(A) to provide relevant information to driver
2808	2551		education providers [schools] or otherwise to comply with Section
2809	2552		1001.2511;
2810	2553		(B) by court order; or
2811	2554		(C) with the consent of the person who is the
2812	2555		subject of the information;
2813	2556		(2) is not subject to disclosure as provided by
2814	2557		Chapter 552, Government Code; and
2815	2558		(3) shall be destroyed by the requestor or any
2816	2559		subsequent holder of the information not later than the first
2817	2560		anniversary of the date the information is received.
2818		-	SECTION 5.36. Sections 1001.2514(a) and (d), Education
	2561	+	SECTION 4.35. Sections 1001.2514(a) and (d), Education
2819	2562		Code, are amended to read as follows:
2820	2563		(a) A driver education provider [school] shall discharge or
2821	2564		refuse to hire as an instructor an employee or applicant for
2822	2565		employment if the department obtains information through a criminal
2823	2566		history record information review that:
2824	2567		(1) the employee or applicant has been convicted of:
2825	2568		(A) a felony offense under Title 5, Penal Code;
2826	2569		(B) an offense on conviction of which a defendant
2827	2570		is required to register as a sex offender under Chapter 62, Code of
2828	2571		Criminal Procedure; or
2829	2572		(C) an offense under the laws of another state or
2830	2573		federal law that is equivalent to an offense under Paragraph (A) or
2831	2574		(B); and
2832	2575		(2) at the time the offense occurred, the victim of the
2833	2576		offense described by Subdivision (1) was under 18 years of age or
2834	2577		was enrolled in a public school.
2835	2578		(d) A driver education provider [school] may discharge an
2836	2579		employee who serves as an instructor if the provider [school]
2837	2580		obtains information of the employee's conviction of a felony or of a
2838	2581		misdemeanor involving moral turpitude that the employee did not
2839	2582		disclose to the provider [school] or the department. An employee
2840	2583		discharged under this subsection is considered to have been
2841	2584		discharged for misconduct for purposes of Section 207.044, Labor
2842	2585		Code.
2843		-	SECTION 5.37. Section 1001.2531(b), Education Code, is
	2586	+	SECTION 4.36. Section 1001.2531(b), Education Code, is
2844	2587		amended to read as follows:
2845	2588		(b) An applicant for a driver education instructor license
2846	2589		under this section must:
2847	2590		(1) apply to the department on a form prescribed by the
2848	2591		department and under rules adopted by the commission;
2849	2592		(2) submit with the application a nonrefundable
2850	2593		application fee in an amount set by commission rule; and
2851	2594		(3) present satisfactory evidence to the department
2852	2595		that the applicant:
2853	2596		(A) is at least 21 years of age; and
2854	2597		(B) [holds a high school diploma or high school
2855	2598		equivalency certificate; and
2856	2599		[(C)] meets any other requirement established by
2857	2600		commission rule.
2858		-	SECTION 5.38. Sections 1001.255(a), (b), and (c), Education
	2601	+	SECTION 4.37. Sections 1001.255(a), (b), and (c), Education
2859	2602		Code, are amended to read as follows:
2860	2603		(a) The department shall regulate as a driver education
2861	2604		provider of the type determined appropriate by the department
2862	2605		[school] a driver education instructor who:
2863	2606		(1) teaches driver education courses in a county
2864	2607		having a population of 50,000 or less; and
2865	2608		(2) does not teach more than 200 students annually.
2866	2609		(b) An instructor described by Subsection (a) must submit to
2867	2610		the department an application for an initial or renewal driver
2868	2611		education provider [school] license, together with all required
2869	2612		documentation and information.
2870	2613		(c) The executive director may waive initial or renewal
2871	2614		driver education provider [school] license fees.
2872		-	SECTION 5.39. Section 1001.301, Education Code, is amended
	2615	+	SECTION 4.38. Section 1001.301, Education Code, is amended
2873	2616		to read as follows:
2874	2617		Sec. 1001.301. EXPIRATION OF DRIVER TRAINING [SCHOOL OR
2875	2618		COURSE] PROVIDER LICENSE. The term of a driver training [education
2876	2619		school, driving safety school, or course] provider license may not
2877	2620		exceed one year.
2878		-	SECTION 5.40. Section 1001.302, Education Code, is amended
	2621	+	SECTION 4.39. Section 1001.302, Education Code, is amended
2879	2622		to read as follows:
2880	2623		Sec. 1001.302. EXPIRATION OF DRIVER EDUCATION INSTRUCTOR
2881	2624		LICENSE. The term of a driver education instructor [or driving
2882	2625		safety instructor] license may not exceed one year.
2883		-	SECTION 5.41. Section 1001.351, Education Code, is amended
	2626	+	SECTION 4.40. Section 1001.351, Education Code, is amended
2884	2627		to read as follows:
2885	2628		Sec. 1001.351. DRIVING SAFETY [COURSE] PROVIDER
2886	2629		RESPONSIBILITIES. (a) Not later than the 15th working day after
2887	2630		the course completion date, a driving safety [course] provider or a
2888	2631		person at the [course] provider's facilities shall issue and
2889	2632		deliver by United States mail or commercial or electronic delivery
2890	2633		a uniform certificate of course completion to a person who
2891	2634		successfully completes an approved driving safety course.
2892	2635		(b) A driving safety [course] provider shall electronically
2893	2636		submit to the department in the manner established by the
2894	2637		department data identified by the department relating to uniform
2895	2638		certificates of course completion issued by the [course] provider.
2896	2639		[(c) A course provider shall conduct driving safety
2897	2640		instructor development courses for its approved driving safety
2898	2641		courses.]
2899		-	SECTION 5.42. Section 1001.352, Education Code, is amended
	2642	+	SECTION 4.41. Section 1001.352, Education Code, is amended
2900	2643		to read as follows:
2901	2644		Sec. 1001.352. FEES FOR DRIVING SAFETY COURSE. A driving
2902	2645		safety [course] provider shall charge each student:
2903	2646		(1) at least $25 for a driving safety course; and
2904	2647		(2) a fee of at least $3 for course materials and for
2905	2648		supervising and administering the course.
2906		-	SECTION 5.43. Section 1001.353, Education Code, is amended
	2649	+	SECTION 4.42. Section 1001.353, Education Code, is amended
2907	2650		to read as follows:
2908	2651		Sec. 1001.353. DRIVER TRAINING COURSE AT PUBLIC OR PRIVATE
2909	2652		SCHOOL. A driver training provider [school] may conduct a driver
2910	2653		training course at a public or private school for students of the
2911	2654		public or private school as provided by an agreement with the public
2912	2655		or private school. The course is subject to any law applicable to a
2913	2656		course conducted at the main business location of the driver
2914	2657		training provider [school].
2915		-	SECTION 5.44. Section 1001.355, Education Code, is amended
	2658	+	SECTION 4.43. Section 1001.355, Education Code, is amended
2916	2659		to read as follows:
2917	2660		Sec. 1001.355. WITHHOLDING CERTAIN RECORDS. A driver
2918	2661		training provider [school] may withhold a student's diploma or
2919	2662		certificate of completion until the student fulfills the student's
2920	2663		financial obligation to the provider [school].
2921		-	SECTION 5.45. Section 1001.356, Education Code, is amended
	2664	+	SECTION 4.44. Section 1001.356, Education Code, is amended
2922	2665		to read as follows:
2923	2666		Sec. 1001.356. REQUIREMENT TO CARRY LICENSE. A driver
2924	2667		education instructor [or driving safety instructor] shall carry the
2925	2668		person's instructor license at all times while instructing a driver
2926	2669		education course [or driving safety course].
2927		-	SECTION 5.46. Section 1001.357, Education Code, is amended
	2670	+	SECTION 4.45. Section 1001.357, Education Code, is amended
2928	2671		to read as follows:
2929	2672		Sec. 1001.357. CONTRACT WITH UNLICENSED DRIVER TRAINING
2930	2673		PROVIDER [SCHOOL]. A contract entered into with a person for a
2931	2674		course of instruction by or on behalf of a person operating an
2932	2675		unlicensed driver training provider [school] is unenforceable.
2933		-	SECTION 5.47. Section 1001.401, Education Code, is amended
	2676	+	SECTION 4.46. Section 1001.401, Education Code, is amended
2934	2677		to read as follows:
2935	2678		Sec. 1001.401. CANCELLATION AND SETTLEMENT POLICY. As a
2936	2679		condition for obtaining a driver training [education school license
2937	2680		or course] provider license, the [school or course] provider must
2938	2681		maintain a cancellation and settlement policy that provides a full
2939	2682		refund of all money paid by a student if:
2940	2683		(1) the student cancels the enrollment contract before
2941	2684		midnight of the third day, other than a Saturday, Sunday, or legal
2942	2685		holiday, after the date the enrollment contract is signed by the
2943	2686		student, unless the student successfully completes the course or
2944	2687		receives a failing grade on the course examination; or
2945	2688		(2) the enrollment of the student was procured as a
2946	2689		result of a misrepresentation in:
2947	2690		(A) advertising or promotional materials of the
2948	2691		[school or course] provider; or
2949	2692		(B) a representation made by an owner or employee
2950	2693		of the [school or course] provider.
2951		-	SECTION 5.48. Section 1001.402, Education Code, is amended
	2694	+	SECTION 4.47. Section 1001.402, Education Code, is amended
2952	2695		to read as follows:
2953	2696		Sec. 1001.402. TERMINATION POLICY. (a) As a condition for
2954	2697		obtaining a driver training provider [education school] license,
2955	2698		the provider [school] must maintain a policy for the refund of the
2956	2699		unused portion of tuition, fees, and other charges if a student,
2957	2700		after expiration of the cancellation period described by Section
2958	2701		1001.401, does not enter the course or withdraws or is discontinued
2959	2702		from the course at any time before completion.
2960	2703		(b) The policy must provide that:
2961	2704		(1) refunds are based on the period of enrollment
2962	2705		computed on the basis of course time expressed in clock hours;
2963	2706		(2) the effective date of the termination for refund
2964	2707		purposes is the earliest of:
2965	2708		(A) the last day of attendance, if the student's
2966	2709		enrollment is terminated by the provider [school];
2967	2710		(B) the date the provider [school] receives
2968	2711		written notice from the student; or
2969	2712		(C) the 10th school day after the last day of
2970	2713		attendance;
2971	2714		(3) if tuition is collected in advance of entrance and
2972	2715		if a student does not enter the course [school], terminates
2973	2716		enrollment, or withdraws, the provider [school]:
2974	2717		(A) may retain not more than $50 as an
2975	2718		administrative expense; and
2976	2719		(B) shall refund that portion of the student's
2977	2720		remaining classroom tuition and fees and behind-the-wheel tuition
2978	2721		and fees that corresponds to services the student does not receive;
2979	2722		(4) the provider [school] shall refund items of extra
2980	2723		expense to the student, including instructional supplies, books,
2981	2724		laboratory fees, service charges, rentals, deposits, and all other
2982	2725		charges not later than the 30th day after the effective date of
2983	2726		enrollment termination if:
2984	2727		(A) the extra expenses are separately stated and
2985	2728		shown in the information provided to the student before enrollment;
2986	2729		and
2987	2730		(B) the student returns to the provider [school]
2988	2731		any provider [school] property in the student's possession; and
2989	2732		(5) refunds shall be completed not later than the 30th
2990	2733		day after the effective date of enrollment termination.
2991		-	SECTION 5.49. Section 1001.403, Education Code, is amended
	2734	+	SECTION 4.48. Section 1001.403, Education Code, is amended
2992	2735		to read as follows:
2993	2736		Sec. 1001.403. REFUND FOR DISCONTINUED COURSE. On the
2994	2737		discontinuation of a course by a driver training [education school
2995	2738		or a course] provider that prevents a student from completing the
2996	2739		course, all tuition and fees paid become refundable.
2997		-	SECTION 5.50. Sections 1001.404(a) and (c), Education Code,
	2740	+	SECTION 4.49. Sections 1001.404(a) and (c), Education Code,
2998	2741		are amended to read as follows:
2999	2742		(a) If a refund is not timely made, the driver training
3000	2743		[education school or course] provider shall pay interest on the
3001	2744		amount of the refund. Interest begins to accrue on the first day
3002	2745		after the expiration of the refund period and ends on the day
3003	2746		preceding the date the refund is made.
3004	2747		(c) The department may except a driver training [education
3005	2748		school or course] provider from the payment of interest if the
3006	2749		[school or course] provider makes a good-faith effort to refund
3007	2750		tuition, fees, and other charges but is unable to locate the student
3008	2751		to whom the refund is owed. On request of the department, the
3009	2752		driver training [school or course] provider shall document the
3010	2753		effort to locate a student.
3011		-	SECTION 5.51. Subchapter I, Chapter 1001, Education Code,
	2754	+	SECTION 4.50. Subchapter I, Chapter 1001, Education Code,
3012	2755		is amended by adding Section 1001.405 to read as follows:
3013	2756		Sec. 1001.405. APPLICABILITY TO PARENT-TAUGHT DRIVER
3014	2757		EDUCATION PROVIDER. The commission shall adopt rules as necessary
3015	2758		to ensure this subchapter applies as appropriate to a parent-taught
3016	2759		driver education provider.
3017		-	SECTION 5.52. Section 1001.451, Education Code, is amended
	2760	+	SECTION 4.51. Section 1001.451, Education Code, is amended
3018	2761		to read as follows:
3019	2762		Sec. 1001.451. PROHIBITED PRACTICES. A person may not:
3020	2763		(1) use advertising that is false, misleading, or
3021	2764		deceptive;
3022	2765		(2) fail to notify the department of the
3023	2766		discontinuance of the operation of a driver training provider
3024	2767		[school] before the 15th working day after the date of cessation of
3025	2768		classes and make available accurate records as required by this
3026	2769		chapter;
3027	2770		(3) issue, sell, trade, or transfer:
3028	2771		(A) a uniform certificate of course completion or
3029	2772		driver education certificate to a person or driver training
3030	2773		provider [school] not authorized to possess the certificate;
3031	2774		(B) a uniform certificate of course completion to
3032	2775		a person who has not successfully completed an approved[, six-hour]
3033	2776		driving safety course; or
3034	2777		(C) a driver education certificate to a person
3035	2778		who has not successfully completed a department-approved driver
3036	2779		education course;
3037	2780		(4) negotiate a promissory instrument received as
3038	2781		payment of tuition or another charge before the student completes
3039	2782		75 percent of the course, except that before that time the
3040	2783		instrument may be assigned to a purchaser who becomes subject to any
3041	2784		defense available against the provider [school] named as payee; or
3042	2785		(5) conduct any part of an approved driver education
3043	2786		course [or driving safety course] without having an instructor
3044	2787		adequately available [physically present in appropriate proximity]
3045	2788		to the student for the type of instruction being given.
3046		-	SECTION 5.53. Section 1001.452, Education Code, is amended
	2789	+	SECTION 4.52. Section 1001.452, Education Code, is amended
3047	2790		to read as follows:
3048	2791		Sec. 1001.452. COURSE OF INSTRUCTION OR PROVISION OF
3049	2792		MATERIALS. A driver training provider [school] may not conduct a
3050	2793		course of instruction or provide driver education course materials,
3051	2794		as applicable, in this state before the date the provider [school]
3052	2795		receives the necessary [a] driver training provider [school]
3053	2796		license from the department.
3054		-	SECTION 5.54. The heading to Section 1001.453, Education
	2797	+	SECTION 4.53. The heading to Section 1001.453, Education
3055	2798		Code, is amended to read as follows:
3056	2799		Sec. 1001.453. DISTRIBUTION OF WRITTEN INFORMATION ON
3057	2800		DRIVING SAFETY [COURSE] PROVIDER.
3058		-	SECTION 5.55. Sections 1001.453(a) and (b), Education Code,
	2801	+	SECTION 4.54. Sections 1001.453(a) and (b), Education Code,
3059	2802		are amended to read as follows:
3060	2803		(a) A person may not distribute within 500 feet of a court
3061	2804		with jurisdiction over an offense to which Article 45.0511, Code of
3062	2805		Criminal Procedure, applies written information that advertises a
3063	2806		driving safety [course] provider.
3064	2807		(b) The department may revoke the license of a driving
3065	2808		safety [course] provider if the [course] provider or the [course]
3066	2809		provider's agent, employee, or representative violates this
3067	2810		section.
3068		-	SECTION 5.56. Section 1001.455, Education Code, is amended
	2811	+	SECTION 4.55. Section 1001.455, Education Code, is amended
3069	2812		to read as follows:
3070	2813		Sec. 1001.455. DENIAL, SUSPENSION, OR REVOCATION OF DRIVER
3071	2814		EDUCATION INSTRUCTOR LICENSE. (a) The executive director or the
3072	2815		commission may deny an application for a driver education [an]
3073	2816		instructor license or suspend or revoke the license of a driver
3074	2817		education [an] instructor if the instructor:
3075	2818		(1) fails to meet a requirement for issuance of or
3076	2819		holding a license under this chapter;
3077	2820		(2) permits or engages in misrepresentation, fraud, or
3078	2821		deceit in applying for or obtaining a certificate, license, or
3079	2822		permit;
3080	2823		(3) induces fraud or fraudulent practices on the part
3081	2824		of an applicant for a driver's license or permit;
3082	2825		(4) permits or engages in any other fraudulent
3083	2826		practice in an action between the applicant or license holder and
3084	2827		the public;
3085	2828		(5) fails to comply with commission rules relating to
3086	2829		driver instruction; or
3087	2830		(6) fails to comply with this chapter.
3088		-	SECTION 5.57. Section 106.115(a), Alcoholic Beverage Code,
	2831	+	SECTION 4.56. Section 106.115(a), Alcoholic Beverage Code,
3089	2832		is amended to read as follows:
3090	2833		(a) On the placement of a minor on deferred disposition for
3091	2834		an offense under Section 49.02, Penal Code, or under Section
3092	2835		106.02, 106.025, 106.04, 106.041, 106.05, or 106.07, the court
3093	2836		shall require the defendant to attend an alcohol awareness program
3094	2837		approved by the Texas Department of Licensing and Regulation under
3095	2838		this section or [,] a drug education program approved by the
3096	2839		Department of State Health Services in accordance with Section
3097	2840		521.374, Transportation Code[, or a drug and alcohol driving
3098	2841		awareness program approved by the Texas Education Agency]. On
3099	2842		conviction of a minor of an offense under one or more of those
3100	2843		sections, the court, in addition to assessing a fine as provided by
3101	2844		those sections, shall require a defendant who has not been
3102	2845		previously convicted of an offense under one of those sections to
3103	2846		attend an alcohol awareness program or[,] a drug education
3104	2847		program[, or a drug and alcohol driving awareness program]
3105	2848		described by this subsection. If the defendant has been previously
3106	2849		convicted once or more of an offense under one or more of those
3107	2850		sections, the court may require the defendant to attend an alcohol
3108	2851		awareness program or [,] a drug education program[, or a drug and
3109	2852		alcohol driving awareness program] described by this subsection. If
3110	2853		the defendant is younger than 18 years of age, the court may require
3111	2854		the parent or guardian of the defendant to attend the program with
3112	2855		the defendant. The Texas Department of Licensing and Regulation or
3113	2856		Texas Commission of Licensing and Regulation, as appropriate:
3114	2857		(1) is responsible for the administration of the
3115	2858		certification of approved alcohol awareness programs;
3116	2859		(2) may charge a nonrefundable application fee for:
3117	2860		(A) initial certification of the approval; or
3118	2861		(B) renewal of the certification;
3119	2862		(3) shall adopt rules regarding alcohol awareness
3120	2863		programs approved under this section; and
3121	2864		(4) shall monitor, coordinate, and provide training to
3122	2865		a person who provides an alcohol awareness program.
3123		-	SECTION 5.58. Article 45.051(b-1), Code of Criminal
	2866	+	SECTION 4.57. Article 45.051(b-1), Code of Criminal
3124	2867		Procedure, is amended to read as follows:
3125	2868		(b-1) If the defendant is younger than 25 years of age and
3126	2869		the offense committed by the defendant is a traffic offense
3127	2870		classified as a moving violation:
3128	2871		(1) Subsection (b)(8) does not apply;
3129	2872		(2) during the deferral period, the judge[:
3130	2873		[(A)] shall require the defendant to complete a
3131	2874		driving safety course approved under Chapter 1001, Education Code;
3132	2875		and
3133	2876		[(B) may require the defendant to complete an
3134	2877		additional driving safety course designed for drivers younger than
3135	2878		25 years of age and approved under Section 1001.111, Education
3136	2879		Code; and]
3137	2880		(3) if the defendant holds a provisional license,
3138	2881		during the deferral period the judge shall require that the
3139	2882		defendant be examined by the Department of Public Safety as
3140	2883		required by Section 521.161(b)(2), Transportation Code; a
3141	2884		defendant is not exempt from the examination regardless of whether
3142	2885		the defendant was examined previously.
3143		-	SECTION 5.59. Section 28.012(a)(3), Education Code, is
	2886	+	SECTION 4.58. Section 28.012(a)(3), Education Code, is
3144	2887		amended to read as follows:
3145	2888		(3) "Driver training provider [school]" has the
3146	2889		meaning assigned by Section 1001.001.
3147		-	SECTION 5.60. Section 28.012(e), Education Code, is amended
	2890	+	SECTION 4.59. Section 28.012(e), Education Code, is amended
3148	2891		to read as follows:
3149	2892		(e) Subject to rules adopted by the board, a school district
3150	2893		or open-enrollment charter school may tailor the instruction
3151	2894		developed under this section as appropriate for the district's or
3152	2895		school's community. In tailoring the instruction, the district or
3153	2896		school shall solicit input from local law enforcement agencies,
3154	2897		driver training providers [schools], and the community.
3155		-	SECTION 5.61. Section 29.902(c), Education Code, is amended
	2898	+	SECTION 4.60. Section 29.902(c), Education Code, is amended
3156	2899		to read as follows:
3157	2900		(c) A school district shall consider offering a driver
3158	2901		education and traffic safety course during each school year. If the
3159	2902		district offers the course, the district may:
3160	2903		(1) conduct the course and charge a fee for the course
3161	2904		in the amount determined by the agency to be comparable to the fee
3162	2905		charged by a driver education provider [school] that holds a
3163	2906		license under Chapter 1001; or
3164	2907		(2) contract with a driver education provider [school]
3165	2908		that holds a license under Chapter 1001 to conduct the course.
3166		-	SECTION 5.62. Section 123.007, Government Code, is amended
	2909	+	SECTION 4.61. Section 123.007, Government Code, is amended
3167	2910		to read as follows:
3168	2911		Sec. 123.007. USE OF OTHER DRUG AND ALCOHOL AWARENESS
3169	2912		PROGRAMS. In addition to using a drug court program established
3170	2913		under this chapter, the commissioners court of a county or a court
3171	2914		may use other drug awareness [or drug and alcohol driving
3172	2915		awareness] programs to treat persons convicted of drug or alcohol
3173	2916		related offenses.
3174		-	SECTION 5.63. Section 521.165(e), Transportation Code, is
	2917	+	SECTION 4.62. Section 521.165(e), Transportation Code, is
3175	2918		amended to read as follows:
3176	2919		(e) The department may authorize an entity described by
3177	2920		Subsection (a), including a driver education provider [school]
3178	2921		described by Section 521.1655, to administer the examination
3179	2922		required by Section 521.161(b)(2).
3180		-	SECTION 5.64. Sections 521.1655(a) and (a-1),
	2923	+	SECTION 4.63. Sections 521.1655(a) and (a-1),
3181	2924		Transportation Code, are amended to read as follows:
3182	2925		(a) An in-person [A] driver education provider or online
3183	2926		driver education provider [school] licensed under Chapter 1001,
3184	2927		Education Code, may administer to a student of that provider
3185	2928		[school] the vision, highway sign, and traffic law parts of the
3186	2929		examination required by Section 521.161.
3187	2930		(a-1) A parent-taught driver education [course] provider
3188	2931		licensed [approved] under Chapter 1001, Education Code, [Section
3189	2932		521.205] may administer to a student of that course the highway sign
3190	2933		and traffic law parts of the examination required by Section
3191	2934		521.161.
3192		-	SECTION 5.65. Sections 521.206(a) and (b), Transportation
	2935	+	SECTION 4.64. Sections 521.206(a) and (b), Transportation
3193	2936		Code, are amended to read as follows:
3194	2937		(a) The department shall collect data regarding collisions
3195	2938		of students taught by public schools, driver education providers
3196	2939		[schools] licensed under Chapter 1001, Education Code, and other
3197	2940		entities that offer driver education courses to students for which
3198	2941		a uniform certificate of course completion is issued. The
3199	2942		collision rate is computed by determining the number of an entity's
3200	2943		students who complete a driver education course during a state
3201	2944		fiscal year, dividing that number by the number of collisions that
3202	2945		involved students who completed such a course and that occurred in
3203	2946		the 12-month period following their licensure, and expressing the
3204	2947		quotient as a percentage.
3205	2948		(b) The department shall collect data regarding the
3206	2949		collision rate of students taught by course instructors approved
3207	2950		under Section 1001.112, Education Code. The collision rate is
3208	2951		computed by determining the number of students who completed a
3209	2952		course taught [approved] under that section [Section 1001.112,
3210	2953		Education Code,] during a state fiscal year, dividing that number
3211	2954		by the number of collisions that involved students who completed
3212	2955		such a course and that occurred in the 12-month period following
3213	2956		their licensure, and expressing the quotient as a percentage.
3214		-	SECTION 5.66. Section 521.222(a), Transportation Code, is
	2957	+	SECTION 4.65. Section 521.222(a), Transportation Code, is
3215	2958		amended to read as follows:
3216	2959		(a) The department may issue a learner license, including a
3217	2960		Class A or Class B driver's learner license, to a person who:
3218	2961		(1) is 15 years of age or older but under 18 years of
3219	2962		age;
3220	2963		(2) has satisfactorily completed and passed the
3221	2964		classroom phase of an approved driver education course, which may
3222	2965		be a course taught [approved] under Section 1001.112, Education
3223	2966		Code;
3224	2967		(3) meets the requirements imposed under Section
3225	2968		521.204(a)(3); and
3226	2969		(4) has passed each examination required under Section
3227	2970		521.161 other than the driving test.
3228		-	SECTION 5.67. Section 542.304(a), Transportation Code, as
	2971	+	SECTION 4.66. Section 542.304(a), Transportation Code, as
3229	2972		added by Chapter 1094 (H.B. 2048), Acts of the 86th Legislature,
3230	2973		Regular Session, 2019, is amended to conform to Section 4.40,
3231	2974		Chapter 1352 (S.B. 346), Acts of the 86th Legislature, Regular
3232	2975		Session, 2019, and is further amended to read as follows:
3233	2976		(a) The department by rule shall designate the offenses
3234	2977		involving the operation of a motor vehicle that constitute a moving
3235	2978		violation of the traffic law for the purposes of:
3236	2979		(1) [Article 102.022(a), Code of Criminal Procedure;
3237	2980		[(2)] Section 1001.112(b)(4) [1001.112(a-2)],
3238	2981		Education Code;
3239	2982		(2) [(3)] Section 411.110(f), Government Code; and
3240	2983		(3) [(4)] Sections 773.0614(b) and 773.06141(a),
3241	2984		Health and Safety Code.
3242		-	SECTION 5.68. The following provisions are repealed:
	2985	+	SECTION 4.67. The following provisions are repealed:
3243	2986		(1) Article 45.0511(u), Code of Criminal Procedure;
3244	2987		(2) Sections 1001.001(4), (7), (10), and (11),
3245	2988		Education Code;
3246	2989		(3) Sections 1001.056(a) and (f), Education Code;
3247	2990		(4) Section 1001.1015(c), Education Code;
3248	2991		(5) Sections 1001.103 and 1001.111, Education Code;
3249	2992		(6) Section 1001.151(e), Education Code;
3250	2993		(7) Sections 1001.205 and 1001.208, Education Code;
3251	2994		(8) Section 1001.251(b), Education Code;
3252	2995		(9) Section 1001.2531(a), Education Code;
3253	2996		(10) Sections 1001.2532, 1001.2533, 1001.2534,
3254	2997		1001.2535, 1001.303, 1001.304, 1001.354, 1001.3541, and 1001.3542,
3255	2998		Education Code;
3256	2999		(11) the heading to Subchapter K, Chapter 1001,
3257	3000		Education Code;
3258	3001		(12) Section 545.412(g), Transportation Code; and
3259	3002		(13) Section 545.413(i), Transportation Code.
3260		-	SECTION 5.69. On December 1, 2021:
	3003	+	SECTION 4.68. On December 1, 2021:
3261	3004		(1) the terms of members serving on the driver
3262	3005		training and traffic safety advisory committee under Section
3263	3006		1001.058, Education Code, immediately before that date expire; and
3264	3007		(2) the presiding officer of the Texas Commission of
3265	3008		Licensing and Regulation shall appoint members of the driver
3266	3009		training and traffic safety advisory committee having
3267	3010		qualifications that correspond as closely as possible to the
3268	3011		qualifications provided under the changes in law made by this Act to
3269	3012		Section 1001.058, Education Code, with initial terms as follows:
3270	3013		(A) three members to terms expiring February 1,
3271	3014		2023;
3272	3015		(B) three members to terms expiring February 1,
3273	3016		2025; and
3274	3017		(C) three members to terms expiring February 1,
3275	3018		2027.
3276		-	SECTION 5.70. Not later than June 1, 2023, the Texas
	3019	+	SECTION 4.69. Not later than June 1, 2023, the Texas
3277	3020		Department of Licensing and Regulation and the Department of Public
3278	3021		Safety of the State of Texas shall enter into the memorandum of
3279	3022		understanding required by Section 1001.060, Education Code, as
3280	3023		added by this article.
3281		-	SECTION 5.71. (a) Not later than June 1, 2023, the Texas
	3024	+	SECTION 4.70. (a) Not later than June 1, 2023, the Texas
3282	3025		Commission of Licensing and Regulation shall adopt rules necessary
3283	3026		to implement the changes in law made by this article to Chapter
3284	3027		1001, Education Code.
3285	3028		(b) A driver education school license, driving safety
3286	3029		school license, or course provider license issued under Chapter
3287	3030		1001, Education Code, before the date the Texas Department of
3288	3031		Licensing and Regulation implements the changes described in
3289	3032		Subsection (a) of this section continues to be valid until the date
3290	3033		the license expires. On expiration of that license, the license
3291	3034		holder shall apply for a new license under Chapter 1001, Education
3292	3035		Code, as amended by this article, to continue to provide services
3293	3036		for which a license is required by that chapter.
3294	3037		(c) Notwithstanding Chapter 1001, Education Code, as
3295	3038		amended by this article, a person who provides driver education
3296	3039		course materials to persons conducting parent-taught driver
3297	3040		education under Section 1001.112, Education Code, as amended by
3298	3041		this article, is not required to hold a parent-taught driver
3299	3042		education provider license under Chapter 1001, Education Code,
3300	3043		before November 1, 2023.
3301		-	SECTION 5.72. ~~(a)~~ The changes in law made by this article
3302		-	to Section 106.115, Alcoholic Beverage Code, and Article 45.051,
3303		-	~~Code~~ of Criminal Procedure, with respect to participation in a
	3044	+	SECTION 4.71. The changes in law made by this article to
	3045	+	Section 106.115, Alcoholic Beverage Code, and Article 45.051, Code
	3046	+	of Criminal Procedure, with respect to participation in a
3304	3047		court-ordered program or course, apply to a court order entered on
3305		-	or after June 1, 2023. A court order entered before that date is
3306		-	governed by the law in effect on the date the order was entered, and
3307		-	the former law is continued in effect for that purpose.
3308		-	(b) Notwithstanding Section 5.67 of this article, the Texas
3309		-	Department of Licensing and Regulation by rule shall provide for
3310		-	the continuance of each program or course under Article 45.0511(u),
3311		-	Code of Criminal Procedure, Section 1001.103 or 1001.111, Education
3312		-	Code, or Section 545.412(g) or 545.413(i), Transportation Code, as
3313		-	repealed by this article, until the date on which the department
3314		-	determines that every person subject to a court order entered
3315		-	before June 1, 2023, requiring participation in a program or course
3316		-	under those provisions has had adequate time to complete the
3317		-	program or course in compliance with the court order.
3318		-	SECTION 5.73. The repeal by this article of Article
3319		-	45.0511(u), Code of Criminal Procedure, Sections 1001.103 and
3320		-	1001.111, Education Code, and Sections 545.412(g) and 545.413(i),
3321		-	Transportation Code, takes effect June 1, 2023.
3322		-	SECTION 5.74. To the extent of any conflict, this article
	3048	+	or after September 1, 2021. A court order entered before that date
	3049	+	is governed by the law in effect on the date the order was entered,
	3050	+	and the former law is continued in effect for that purpose.
	3051	+	SECTION 4.72. To the extent of any conflict, this article
3323	3052		prevails over another Act of the 87th Legislature, Regular Session,
3324	3053		2021, relating to nonsubstantive additions to and corrections in
3325	3054		enacted codes.
3326		-	ARTICLE 6. TRANSITION AND EFFECTIVE DATE
3327		-	SECTION 6.01. The repeal of a statute by this Act controls
	3055	+	ARTICLE 5. RESIDENTIAL SERVICE CONTRACTS
	3056	+	SECTION 5.01. Section 1101.006, Occupations Code, is
	3057	+	amended to read as follows:
	3058	+	Sec. 1101.006. APPLICATION OF SUNSET ACT. The Texas Real
	3059	+	Estate Commission is subject to Chapter 325, Government Code (Texas
	3060	+	Sunset Act). Unless continued in existence as provided by that
	3061	+	chapter, the commission is abolished and this chapter and [,]
	3062	+	Chapter 1102[, and Chapter 1303] of this code and Chapter 221,
	3063	+	Property Code, expire September 1, 2025.
	3064	+	SECTION 5.02. Section 1304.003(a), Occupations Code, is
	3065	+	amended by amending Subdivision (2) and adding Subdivision (4) to
	3066	+	read as follows:
	3067	+	(2) "Service contract" means an agreement that is
	3068	+	entered into for a separately stated consideration and for a
	3069	+	specified term under which a provider agrees to:
	3070	+	(A) repair, replace, or maintain a product, or
	3071	+	provide indemnification for the repair, replacement, or
	3072	+	maintenance of a product, for operational or structural failure or
	3073	+	damage caused by a defect in materials or workmanship or by normal
	3074	+	wear;
	3075	+	(B) provide identity recovery, if the service
	3076	+	contract is financed under Chapter 348 or 353, Finance Code; [or]
	3077	+	(C) provide compensation to the buyer of a
	3078	+	vehicle on the total constructive loss under a depreciation benefit
	3079	+	optional member program; or
	3080	+	(D) provide a service, reimbursement, or payment
	3081	+	under a residential service contract.
	3082	+	(4) "Residential service contract" means a service
	3083	+	contract of any duration under which a provider agrees to, in the
	3084	+	event of the operational or structural failure of, damage caused by
	3085	+	a power surge to, a defect in materials or workmanship of, or damage
	3086	+	caused by normal wear to a structural component, an appliance, or an
	3087	+	electrical, plumbing, heating, cooling, or air-conditioning system
	3088	+	of a residential property that is attached to or located on the
	3089	+	residential property:
	3090	+	(A) service, maintain, repair, or replace all or
	3091	+	any part of the structural component, appliance, or electrical,
	3092	+	plumbing, heating, cooling, or air-conditioning system;
	3093	+	(B) provide incidental payment of indemnity
	3094	+	under limited circumstances, including food spoilage; or
	3095	+	(C) provide reimbursement or payment instead of
	3096	+	service, repair, or replacement when a part, structural component,
	3097	+	appliance, or service provider or technician is unavailable.
	3098	+	SECTION 5.03. Section 1304.003(b), Occupations Code, is
	3099	+	amended to read as follows:
	3100	+	(b) A service contract described by Subsection (a)(2)(A)
	3101	+	may [also] provide for:
	3102	+	(1) incidental payment or indemnity under limited
	3103	+	circumstances, including towing, rental, and emergency road
	3104	+	service;
	3105	+	(2) the repair or replacement of a product for damage
	3106	+	resulting from a power surge or for accidental damage incurred in
	3107	+	handling the product;
	3108	+	(3) identity recovery, if the service contract is
	3109	+	financed under Chapter 348 or 353, Finance Code; or
	3110	+	(4) the replacement of a motor vehicle key or key fob
	3111	+	in the event the key or key fob is inoperable, lost, or stolen.
	3112	+	SECTION 5.04. Section 1304.004(b), Occupations Code, is
	3113	+	amended to read as follows:
	3114	+	(b) This chapter does not apply to:
	3115	+	(1) a warranty;
	3116	+	(2) a maintenance agreement;
	3117	+	(3) a service contract sold or offered for sale to a
	3118	+	person who is not a consumer;
	3119	+	(4) [a residential service contract sold by an entity
	3120	+	licensed by the Texas Real Estate Commission under Chapter 1303;
	3121	+	[(5)] an agreement issued by an automobile service club
	3122	+	that holds a certificate of authority under Chapter 722,
	3123	+	Transportation Code;
	3124	+	(5) [(6)] a service contract sold by a motor vehicle
	3125	+	dealer on a motor vehicle sold by that dealer, if the dealer:
	3126	+	(A) is the provider;
	3127	+	(B) is licensed as a motor vehicle dealer under
	3128	+	Chapter 2301; and
	3129	+	(C) covers its obligations under the service
	3130	+	contract with a reimbursement insurance policy; or
	3131	+	(6) [(7)] a contract offered by a local exchange
	3132	+	telephone company that provides for the repair of inside telephone
	3133	+	wiring, if:
	3134	+	(A) the contract term does not exceed one month;
	3135	+	and
	3136	+	(B) the consumer can terminate the contract
	3137	+	before a new contract term begins without liability except for
	3138	+	payment of charges for the term that has begun.
	3139	+	SECTION 5.05. Subchapter A, Chapter 1304, Occupations Code,
	3140	+	is amended by adding Section 1304.0041 to read as follows:
	3141	+	Sec. 1304.0041. CERTAIN EXEMPT AGREEMENTS. This chapter
	3142	+	does not apply to:
	3143	+	(1) a performance guarantee offered by:
	3144	+	(A) the builder of a residential property; or
	3145	+	(B) the manufacturer or seller of an appliance or
	3146	+	other system or component of a residential property;
	3147	+	(2) a residential service contract executed before
	3148	+	August 28, 1979;
	3149	+	(3) a guarantee or warranty that is:
	3150	+	(A) designed to guarantee or warrant the repair
	3151	+	or service of an appliance, system, or component of a residential
	3152	+	property; and
	3153	+	(B) issued by a person who sells, services,
	3154	+	repairs, or replaces the appliance, system, or component at the
	3155	+	time or before the guarantee or warranty is issued;
	3156	+	(4) a service or maintenance agreement or a warranty
	3157	+	that:
	3158	+	(A) is sold, offered for sale, or issued by a
	3159	+	manufacturer or merchant who manufactures or sells a product or
	3160	+	part of a product, including a structural component, an appliance,
	3161	+	or an electrical, plumbing, heating, cooling, or air-conditioning
	3162	+	system of a building or residence; and
	3163	+	(B) provides for, warrants, or guarantees the
	3164	+	maintenance, repair, replacement, or performance of the product or
	3165	+	part of the product; or
	3166	+	(5) home warranty insurance as defined by Section
	3167	+	2005.001, Insurance Code.
	3168	+	SECTION 5.06. Section 1304.005, Occupations Code, is
	3169	+	amended to read as follows:
	3170	+	Sec. 1304.005. EXEMPTIONS FROM CERTAIN OTHER LAWS.
	3171	+	Marketing, selling, offering for sale, issuing, making, proposing
	3172	+	to make, and administering a service contract are exempt from:
	3173	+	(1) [Chapter 1303;
	3174	+	[(2)] Chapter 722, Transportation Code; and
	3175	+	(2) [(3)] the Insurance Code and other laws of this
	3176	+	state regulating the business of insurance.
	3177	+	SECTION 5.07. Section 1304.151, Occupations Code, is
	3178	+	amended by amending Subsection (b) and adding Subsection (b-4) to
	3179	+	read as follows:
	3180	+	(b) If the provider ensures its obligations under
	3181	+	Subsection (a)(2), the amount maintained in the reserve account may
	3182	+	not be less than an amount equal to 40 percent of the gross
	3183	+	consideration the provider received from consumers from the sale of
	3184	+	all service contracts issued and outstanding in this state, minus
	3185	+	any claims paid. The executive director may review and examine the
	3186	+	reserve account. Except as provided by Subsections [Subsection]
	3187	+	(b-1) and (b-4), the amount of the security deposit may not be less
	3188	+	than $250,000. The provider must submit to the executive director
	3189	+	on request a copy of the provider's financial statements that must
	3190	+	be prepared in accordance with generally accepted accounting
	3191	+	principles, be without qualification as to the going concern status
	3192	+	of the provider, and be audited by an independent certified public
	3193	+	accountant. The commission by rule may require the provider to
	3194	+	submit additional financial reports.
	3195	+	(b-4) The amount of the security deposit required under
	3196	+	Subsection (b) may not be less than $25,000 for a provider of a
	3197	+	residential service contract.
	3198	+	SECTION 5.08. Section 1304.156, Occupations Code, is
	3199	+	amended by adding Subsection (f) to read as follows:
	3200	+	(f) A residential service contract must state that the
	3201	+	provider agrees that, under normal circumstances, the provider will
	3202	+	initiate the performance of services not later than 48 hours after
	3203	+	the contract holder requests the services.
	3204	+	SECTION 5.09. Subchapter D, Chapter 1304, Occupations Code,
	3205	+	is amended by adding Section 1304.157 to read as follows:
	3206	+	Sec. 1304.157. RESIDENTIAL SERVICE CONTRACTS. (a) A
	3207	+	person may not sell, offer to sell, arrange or solicit the sale of,
	3208	+	or receive an application for a residential service contract unless
	3209	+	the person is:
	3210	+	(1) employed by a provider or administrator of a
	3211	+	residential service contract who is licensed under this chapter; or
	3212	+	(2) licensed as a real estate sales agent, real estate
	3213	+	broker, mobile home dealer, or insurance agent in this state.
	3214	+	(b) Notwithstanding Subsection (a), a person compensated by
	3215	+	a provider or administrator, but who is not employed by that
	3216	+	provider or administrator, may sell, offer to sell, arrange or
	3217	+	solicit the sale of, or receive an application for a residential
	3218	+	service contract if the contract contains the following statement
	3219	+	in at least 10-point boldface type: "NOTICE: THIS COMPANY PAYS
	3220	+	PERSONS NOT EMPLOYED BY THE PROVIDER FOR THE SALE, ADVERTISING,
	3221	+	INSPECTION, OR PROCESSING OF A RESIDENTIAL SERVICE CONTRACT UNDER
	3222	+	CHAPTER 1304, OCCUPATIONS CODE." For purposes of Subsection (a) and
	3223	+	this subsection, a person is employed by a provider or
	3224	+	administrator if, in connection with the person selling, offering
	3225	+	to sell, arranging or soliciting the sale of, or receiving
	3226	+	applications for residential service contracts, the provider or
	3227	+	administrator:
	3228	+	(1) directs and controls the person's performance; and
	3229	+	(2) is responsible for representations made by the
	3230	+	person when acting within the scope of the person's employment.
	3231	+	(c) Notwithstanding Section 1304.151(a)(1), a provider of a
	3232	+	residential service contract may use a reimbursement insurance
	3233	+	policy issued by a captive insurance company as defined by Section
	3234	+	964.001, Insurance Code, to insure the provider's residential
	3235	+	service contracts if the provider maintains a funded reserve equal
	3236	+	to not less than 25 percent of the gross consideration the provider
	3237	+	received from consumers from the sale of all the provider's service
	3238	+	contracts issued and outstanding in this state, minus any claims
	3239	+	paid. A reimbursement insurance policy issued to a residential
	3240	+	service contract provider in accordance with this subsection:
	3241	+	(1) is not subject to Section 1304.152; and
	3242	+	(2) is considered to satisfy the requirements of
	3243	+	Sections 1304.1025 and 1304.151(a)(1) for purposes of this chapter.
	3244	+	SECTION 5.10. Chapter 1303, Occupations Code, is repealed.
	3245	+	SECTION 5.11. Not later than June 1, 2022, the Texas
	3246	+	Commission of Licensing and Regulation shall adopt rules necessary
	3247	+	to implement the changes in law made by this article to Chapter
	3248	+	1304, Occupations Code.
	3249	+	SECTION 5.12. (a) A residential service company licensed
	3250	+	under former Chapter 1303, Occupations Code, that on May 1, 2021,
	3251	+	maintained security in accordance with former Section 1303.154,
	3252	+	Occupations Code, shall continue to maintain security in an amount
	3253	+	not less than the amount required under that section until
	3254	+	September 1, 2026, and the former law is continued in effect for
	3255	+	that purpose.
	3256	+	(b) A residential service company described by Subsection
	3257	+	(a) of this section that is operating as a residential service
	3258	+	contract provider licensed under Chapter 1304, Occupations Code, as
	3259	+	amended by this article, is not required to comply with the security
	3260	+	requirements for residential service contract providers under
	3261	+	Chapter 1304, Occupations Code, as amended by this article, until
	3262	+	September 1, 2026.
	3263	+	(c) Not later than September 1, 2022, a residential service
	3264	+	company described by Subsection (a) of this section that is
	3265	+	operating as a residential service contract provider licensed under
	3266	+	Chapter 1304, Occupations Code, as amended by this article, shall
	3267	+	update the company's financial security documents to:
	3268	+	(1) list the Texas Department of Licensing and
	3269	+	Regulation as a party to the financial security document; and
	3270	+	(2) replace each reference to the Texas Real Estate
	3271	+	Commission with a reference to the Texas Department of Licensing
	3272	+	and Regulation.
	3273	+	SECTION 5.13. (a) In this section, "department" means the
	3274	+	Texas Department of Licensing and Regulation.
	3275	+	(b) On September 1, 2021:
	3276	+	(1) a license issued by the Texas Real Estate
	3277	+	Commission under former Chapter 1303, Occupations Code, is
	3278	+	continued in effect as a license of the department;
	3279	+	(2) all rules, fees, policies, procedures, decisions,
	3280	+	and forms of the Texas Real Estate Commission that relate to a
	3281	+	program or activity transferred under this article are continued in
	3282	+	effect as rules, fees, policies, procedures, decisions, and forms
	3283	+	of the Texas Commission of Licensing and Regulation or the
	3284	+	department, as applicable, and remain in effect until changed by
	3285	+	the Texas Commission of Licensing and Regulation or the department;
	3286	+	and
	3287	+	(3) a complaint, investigation, contested case, or
	3288	+	other proceeding related to a program that is transferred under
	3289	+	this article and that is pending on September 1, 2021, is
	3290	+	transferred without change in status to the Texas Commission of
	3291	+	Licensing and Regulation or the department, as appropriate.
	3292	+	(c) On September 1, 2021:
	3293	+	(1) all money, contracts, leases, property, software
	3294	+	source code and documentation, records, and obligations of the
	3295	+	Texas Real Estate Commission relating to a program or activity
	3296	+	transferred to the department under this article are transferred to
	3297	+	the department; and
	3298	+	(2) the unexpended and unobligated balance of any
	3299	+	money appropriated by the legislature relating to that program or
	3300	+	activity is transferred to the department.
	3301	+	(d) As soon as practicable after September 1, 2021, the
	3302	+	Texas Real Estate Commission shall transfer to the Texas Commission
	3303	+	of Licensing and Regulation or the department, as appropriate, any
	3304	+	bond, reimbursement insurance policy, or other security held for a
	3305	+	residential service company that relates to a program or activity
	3306	+	transferred under this article.
	3307	+	(e) Unless the context indicates otherwise, a reference in
	3308	+	law or administrative rule to the Texas Real Estate Commission with
	3309	+	respect to a program or activity transferred from the Texas Real
	3310	+	Estate Commission to the department under this article means the
	3311	+	Texas Commission of Licensing and Regulation or the department, as
	3312	+	appropriate.
	3313	+	(f) The Texas Real Estate Commission shall provide the
	3314	+	department with access to any systems, facilities, or information
	3315	+	necessary to implement the change in law made by this article.
	3316	+	ARTICLE 6. SPEECH-LANGUAGE PATHOLOGISTS AND AUDIOLOGISTS
	3317	+	SECTION 6.01. Section 401.304(a), Occupations Code, is
	3318	+	amended to read as follows:
	3319	+	(a) To be eligible for licensing as a speech-language
	3320	+	pathologist or audiologist, an applicant must:
	3321	+	(1) if the application is for a license in:
	3322	+	(A) speech-language pathology, possess at least
	3323	+	a master's degree with a major in at least one of the areas of
	3324	+	communicative sciences or disorders from a program accredited by a
	3325	+	national accrediting organization that is approved by the
	3326	+	commission or department and recognized by the United States
	3327	+	secretary of education under the Higher Education Act of 1965 (20
	3328	+	U.S.C. Section 1001 et seq.) in an accredited or approved college or
	3329	+	university; or
	3330	+	(B) audiology, possess at least a master's
	3331	+	[doctoral] degree in audiology or a related hearing science from a
	3332	+	program accredited by a national accrediting organization that is
	3333	+	approved by the commission or department and recognized by the
	3334	+	United States secretary of education under the Higher Education Act
	3335	+	of 1965 (20 U.S.C. Section 1001 et seq.) in an accredited or
	3336	+	approved college or university;
	3337	+	(2) submit a transcript from a public or private
	3338	+	institution of higher learning showing successful completion of
	3339	+	course work in amounts set by the commission by rule in:
	3340	+	(A) normal development and use of speech,
	3341	+	language, and hearing;
	3342	+	(B) evaluation, habilitation, and rehabilitation
	3343	+	of speech, language, and hearing disorders; and
	3344	+	(C) related fields that augment the work of
	3345	+	clinical practitioners of speech-language pathology and audiology;
	3346	+	(3) have successfully completed at least 36 semester
	3347	+	hours in courses that are acceptable toward a graduate degree by the
	3348	+	college or university in which the courses are taken, at least 24 of
	3349	+	which must be in the professional area for which the license is
	3350	+	requested;
	3351	+	(4) have completed the minimum number of hours,
	3352	+	established by the commission by rule, of supervised clinical
	3353	+	experience with persons who present a variety of communication
	3354	+	disorders; and
	3355	+	(5) have completed the full-time supervised
	3356	+	professional experience, as defined by commission rule, in which
	3357	+	clinical work has been accomplished in the major professional area
	3358	+	for which the license is being sought.
	3359	+	SECTION 6.02. Section 401.304(a), Occupations Code, as
	3360	+	amended by this article, applies only to a license application
	3361	+	submitted on or after September 1, 2021. A license application
	3362	+	submitted before that date is governed by the law in effect on the
	3363	+	date the license application was submitted, and the former law is
	3364	+	continued in effect for that purpose.
	3365	+	ARTICLE 7. REGULATION OF RACING
	3366	+	SECTION 7.01. Subchapter C, Chapter 51, Occupations Code,
	3367	+	is amended by adding Section 51.1041 to read as follows:
	3368	+	Sec. 51.1041. PEACE OFFICERS. (a) The department may
	3369	+	commission as a peace officer an employee who has been certified as
	3370	+	qualified to be a peace officer by the Texas Commission on Law
	3371	+	Enforcement.
	3372	+	(b) A peace officer commissioned by the department may
	3373	+	enforce any provision of this chapter relating to the regulation of
	3374	+	racing or any law establishing a program regulated by the
	3375	+	department under Subtitle A-1, Title 13, related to the regulation
	3376	+	of racing.
	3377	+	(c) A peace officer commissioned under this section has the
	3378	+	powers, privileges, and immunities of a peace officer while
	3379	+	carrying out duties authorized by this chapter or a law
	3380	+	establishing a program regulated by the department.
	3381	+	SECTION 7.02. Section 2021.003, Occupations Code, is
	3382	+	amended by amending Subdivisions (2), (8), (9), (14), (20), (21),
	3383	+	(24), (35), and (54) and adding Subdivisions (2-a) and (12-a) to
	3384	+	read as follows:
	3385	+	(2) "Active license" means a racetrack license
	3386	+	designated by the department [commission] as active.
	3387	+	(2-a) "Advisory board" means the Texas Racing Advisory
	3388	+	Board.
	3389	+	(8) "Commission" means the Texas [Racing] Commission
	3390	+	of Licensing and Regulation.
	3391	+	(9) "Concessionaire" means a person licensed by the
	3392	+	department [commission] to sell refreshments or souvenirs at a
	3393	+	racetrack.
	3394	+	(12-a) "Department" means the Texas Department of
	3395	+	Licensing and Regulation.
	3396	+	(14) "Executive director" means the executive
	3397	+	director of the department [commission].
	3398	+	(20) "Horsemen's organization" means an organization
	3399	+	recognized by the department [commission] that:
	3400	+	(A) represents horse owners and trainers in
	3401	+	negotiating and contracting with racetrack associations on
	3402	+	subjects relating to racing; and
	3403	+	(B) represents and advocates the interests of
	3404	+	horse owners and trainers before administrative, legislative, and
	3405	+	judicial forums.
	3406	+	(21) "Inactive license" means a racetrack license
	3407	+	designated by the department [commission] as inactive.
	3408	+	(24) "Maiden" means a horse that has never won a race
	3409	+	at a race meeting authorized by the department [commission] or by
	3410	+	another racing jurisdiction.
	3411	+	(35) "Performance" means the consecutive running of a
	3412	+	specified number of greyhound races as determined by the department
	3413	+	[commission].
	3414	+	(54) "Trainer" means a person who is licensed by the
	3415	+	department [commission] to train horses or greyhounds.
	3416	+	SECTION 7.03. Sections 2021.004(1) and (5), Occupations
	3417	+	Code, are amended to read as follows:
	3418	+	(1) "Authorized agent" means a person appointed by an
	3419	+	owner of a horse to represent the owner. The term is limited to a
	3420	+	person who is appointed by a written instrument that the department
	3421	+	[commission] acknowledges and approves.
	3422	+	(5) "Jockey" or "apprentice jockey" means a
	3423	+	professional rider licensed by the department [commission] to ride
	3424	+	in horse races.
	3425	+	SECTION 7.04. Section 2021.006, Occupations Code, is
	3426	+	amended to read as follows:
	3427	+	Sec. 2021.006. RELEASE OF CIVIL LIABILITY. A commission
	3428	+	member, the executive director, a department [commission]
	3429	+	employee, a steward or judge, a racetrack association, a horsemen's
	3430	+	organization, or any other person regulated under this subtitle is
	3431	+	not liable for a cause of action that arises out of that person's
	3432	+	performance or exercise of discretion in the implementation or
	3433	+	enforcement of this subtitle or a rule adopted under this subtitle
	3434	+	if the person has acted in good faith.
	3435	+	SECTION 7.05. Sections 2021.008(a), (b), (c), and (d),
	3436	+	Occupations Code, are amended to read as follows:
	3437	+	(a) The advisory board [commission] is subject to Chapter
	3438	+	325, Government Code (Texas Sunset Act). The advisory board shall
	3439	+	be reviewed during the period in which the commission and
	3440	+	department are reviewed under Section 51.002. Unless the advisory
	3441	+	board is continued in existence and the commission and department
	3442	+	are continued in existence as provided by that section, [chapter,]
	3443	+	and except as provided by Subsections (b) and (c), [the commission
	3444	+	is abolished and] this subtitle expires on the date provided by that
	3445	+	section [September 1, 2021].
	3446	+	(b) If, at the time the commission, department, and advisory
	3447	+	board would be abolished under Subsection (a), a racetrack
	3448	+	association has outstanding long-term liabilities:
	3449	+	(1) the racetrack association may continue to operate
	3450	+	for a period not to exceed one year after those liabilities are
	3451	+	satisfied; and
	3452	+	(2) the commission, the department, and this subtitle
	3453	+	are continued in effect for the purpose of regulating that
	3454	+	racetrack association under this subtitle.
	3455	+	(c) If the commission, the department, and this subtitle are
	3456	+	continued in effect under Subsection (b), the commission and the
	3457	+	department are [is] abolished and this subtitle expires on the
	3458	+	first day of the state fiscal year following the state fiscal year
	3459	+	in which the commission certifies to the secretary of state that no
	3460	+	racetrack associations are operating under the terms of Subsection
	3461	+	(b).
	3462	+	(d) A racetrack association that continues to operate under
	3463	+	Subsection (b) may not incur any new liability without commission
	3464	+	or department approval. At the beginning of that period, the
	3465	+	commission or department shall:
	3466	+	(1) review the outstanding liabilities of the
	3467	+	racetrack association; and
	3468	+	(2) set a specific date by which the racetrack
	3469	+	association must retire its outstanding liabilities.
	3470	+	SECTION 7.06. The heading to Chapter 2022, Occupations
	3471	+	Code, is amended to read as follows:
	3472	+	CHAPTER 2022. TEXAS RACING ADVISORY BOARD [COMMISSION]
	3473	+	SECTION 7.07. The heading to Section 2022.001, Occupations
	3474	+	Code, is amended to read as follows:
	3475	+	Sec. 2022.001. ADVISORY BOARD [COMMISSION] MEMBERSHIP.
	3476	+	SECTION 7.08. Section 2022.001(a), Occupations Code, is
	3477	+	amended to read as follows:
	3478	+	(a) The Texas Racing Advisory Board [commission] consists
	3479	+	of 11 [:
	3480	+	[(1) seven] members appointed by the presiding officer
	3481	+	of the commission, with commission approval, as follows:
	3482	+	(1) one member who is a representative of a racetrack
	3483	+	association holding a class 1 racetrack license;
	3484	+	(2) one member who is a representative of a racetrack
	3485	+	association holding a class 2 racetrack license;
	3486	+	(3) one member who is a representative of a racetrack
	3487	+	association holding a class 3 racetrack license;
	3488	+	(4) one member who is a representative of a racetrack
	3489	+	association holding a greyhound racetrack license;
	3490	+	(5) one member who is a representative of the Texas
	3491	+	Horsemen's Partnership;
	3492	+	(6) one member who is a representative of the Texas
	3493	+	Thoroughbred Association;
	3494	+	(7) one member who is a representative of the Texas
	3495	+	Quarter Horse Association;
	3496	+	(8) one member who is a representative of the Texas
	3497	+	Greyhound Association;
	3498	+	(9) one member who is a veterinarian; and
	3499	+	(10) two members of the public [governor with the
	3500	+	advice and consent of the senate; and
	3501	+	[(2) two ex officio members who have the right to
	3502	+	vote].
	3503	+	SECTION 7.09. Subchapter A, Chapter 2022, Occupations Code,
	3504	+	is amended by adding Section 2022.0011 to read as follows:
	3505	+	Sec. 2022.0011. DUTIES OF ADVISORY BOARD. The advisory
	3506	+	board shall provide advice and recommendations to the department on
	3507	+	technical matters relevant to the administration of this subtitle.
	3508	+	SECTION 7.10. The heading to Section 2022.002, Occupations
	3509	+	Code, is amended to read as follows:
	3510	+	Sec. 2022.002. TERM OF OFFICE; VACANCIES.
	3511	+	SECTION 7.11. Section 2022.002, Occupations Code, is
	3512	+	amended by amending Subsection (a) and adding Subsection (c) to
	3513	+	read as follows:
	3514	+	(a) Advisory board [Appointed commission] members hold
	3515	+	office for staggered terms of six years with the terms of [two or]
	3516	+	three members expiring February 1 of each odd-numbered year.
	3517	+	(c) If a vacancy occurs during a member's term, the
	3518	+	presiding officer of the commission, with commission approval,
	3519	+	shall appoint a member to fill the vacancy for the remainder of the
	3520	+	unexpired term.
	3521	+	SECTION 7.12. Section 2022.008, Occupations Code, is
	3522	+	amended to read as follows:
	3523	+	Sec. 2022.008. PRESIDING OFFICER. (a) The presiding
	3524	+	officer of the commission [governor] shall designate a [public]
	3525	+	member of the advisory board [commission] as the presiding officer
	3526	+	of the advisory board [commission] to serve in that capacity for a
	3527	+	one-year term [at the pleasure of the governor].
	3528	+	(b) The presiding officer of the advisory board may vote on
	3529	+	any matter before the advisory board.
	3530	+	SECTION 7.13. The heading to Section 2022.009, Occupations
	3531	+	Code, is amended to read as follows:
	3532	+	Sec. 2022.009. ADVISORY BOARD [COMMISSION] MEETINGS [;
	3533	+	RECORD OF COMMISSION VOTES].
	3534	+	SECTION 7.14. Section 2022.009(a), Occupations Code, is
	3535	+	amended to read as follows:
	3536	+	(a) The advisory board [commission] shall meet at the call
	3537	+	of the presiding officer of the commission or the executive
	3538	+	director [hold at least six regular meetings each year on dates
	3539	+	fixed by the commission].
	3540	+	SECTION 7.15. The heading to Section 2022.052, Occupations
	3541	+	Code, is amended to read as follows:
	3542	+	Sec. 2022.052. [EMPLOYEES;] RESTRICTIONS ON EMPLOYMENT.
	3543	+	SECTION 7.16. Section 2022.052(c), Occupations Code, is
	3544	+	amended to read as follows:
	3545	+	(c) The commission or department may not employ or continue
	3546	+	to employ a person who:
	3547	+	(1) owns or controls a financial interest in a
	3548	+	[commission] license holder under this subtitle;
	3549	+	(2) is employed by or serves as a paid consultant to a
	3550	+	[commission] license holder under this subtitle, an official state
	3551	+	breed registry, or a Texas trade association, as defined by Section
	3552	+	51.0535(a) [2022.004(a)], in the field of horse or greyhound racing
	3553	+	or breeding;
	3554	+	(3) owns or leases a race animal that participates in
	3555	+	pari-mutuel racing in this state;
	3556	+	(4) accepts or is entitled to any part of the purse or
	3557	+	Texas-bred incentive award to be paid on a horse or a greyhound in a
	3558	+	race conducted in this state; or
	3559	+	(5) resides with or is related within the first degree
	3560	+	by affinity or consanguinity to a person subject to a
	3561	+	disqualification prescribed by this subsection.
	3562	+	SECTION 7.17. The heading to Section 2022.103, Occupations
	3563	+	Code, is amended to read as follows:
	3564	+	Sec. 2022.103. DEPARTMENT [COMMISSION] INVESTIGATIVE FILES
	3565	+	CONFIDENTIAL.
	3566	+	SECTION 7.18. Sections 2022.103(a), (b), and (c),
	3567	+	Occupations Code, are amended to read as follows:
	3568	+	(a) The contents of the investigatory files of the
	3569	+	department [commission] are not public records and are confidential
	3570	+	except:
	3571	+	(1) in a criminal proceeding;
	3572	+	(2) in a hearing conducted by the State Office of
	3573	+	Administrative Hearings or the commission;
	3574	+	(3) on court order; or
	3575	+	(4) with the consent of the party being investigated.
	3576	+	(b) Except as otherwise provided by this subtitle, the
	3577	+	files, records, information, compilations, documents, photographs,
	3578	+	reports, summaries, and reviews of information and related matters
	3579	+	that are collected, retained, or compiled by the Department of
	3580	+	Public Safety in the discharge of the Department of Public Safety's
	3581	+	[department's] duties under this subtitle are confidential and are
	3582	+	not subject to public disclosure, but are subject to discovery by a
	3583	+	person who is the subject of the files, records, information,
	3584	+	compilations, documents, photographs, reports, summaries, and
	3585	+	reviews of information and related matters that are collected,
	3586	+	retained, or compiled by the Department of Public Safety
	3587	+	[department] in the discharge of the Department of Public Safety's
	3588	+	[department's] duties under this subtitle.
	3589	+	(c) An investigation report or other document submitted by
	3590	+	the Department of Public Safety to the department [commission]
	3591	+	becomes part of the investigative files of the department
	3592	+	[commission] and is subject to discovery by a person who is the
	3593	+	subject of the investigation report or other document submitted by
	3594	+	the Department of Public Safety [department] to the department
	3595	+	[commission] that is part of the investigative files of the
	3596	+	department [commission].
	3597	+	SECTION 7.19. Section 2022.105(a), Occupations Code, is
	3598	+	amended to read as follows:
	3599	+	(a) The department [commission] shall require racetrack
	3600	+	associations, managers, totalisator license holders, and
	3601	+	concessionaires to keep books and records and to submit financial
	3602	+	statements to the department [commission].
	3603	+	SECTION 7.20. The heading to Chapter 2023, Occupations
	3604	+	Code, is amended to read as follows:
	3605	+	CHAPTER 2023. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL
	3606	+	POWERS AND DUTIES
	3607	+	SECTION 7.21. Section 2023.001, Occupations Code, is
	3608	+	amended to read as follows:
	3609	+	Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF
	3610	+	HORSE RACING AND GREYHOUND RACING. (a) Notwithstanding any
	3611	+	contrary provision in this subtitle, the department under the
	3612	+	direction of the commission may license and regulate all aspects of
	3613	+	horse racing and greyhound racing in this state, regardless of
	3614	+	whether that racing involves pari-mutuel wagering.
	3615	+	(b) The commission[,] in adopting rules and the department
	3616	+	in the supervision and conduct of racing [,] shall consider the
	3617	+	effect of a proposed [commission] action on the state's
	3618	+	agricultural, horse breeding, horse training, greyhound breeding,
	3619	+	and greyhound training industry.
	3620	+	SECTION 7.22. Section 2023.002, Occupations Code, is
	3621	+	amended to read as follows:
	3622	+	Sec. 2023.002. REGULATION AND SUPERVISION OF WAGERING AT
	3623	+	RACE MEETINGS. (a) The department [commission] shall regulate and
	3624	+	supervise each race meeting in this state that involves wagering on
	3625	+	the result of horse racing or greyhound racing. Each person and
	3626	+	thing relating to the operation of a race meeting is subject to
	3627	+	regulation and supervision by the department [commission].
	3628	+	(b) The commission shall adopt rules on the issuance of
	3629	+	licenses and other rules necessary to regulate horse racing and
	3630	+	greyhound racing and the department shall [,] issue licenses[,] and
	3631	+	take any other necessary action relating [exclusively] to the
	3632	+	regulation of horse racing or greyhound racing.
	3633	+	SECTION 7.23. Section 2023.003(b), Occupations Code, is
	3634	+	amended to read as follows:
	3635	+	(b) The department [commission] may charge in the amount set
	3636	+	by the commission an annual fee for licensing and regulating a track
	3637	+	that does not offer pari-mutuel wagering or a training facility in a
	3638	+	reasonable amount that may not exceed the actual cost of enforcing
	3639	+	rules adopted by the commission for the licensing and regulation of
	3640	+	races and workouts at such a facility.
	3641	+	SECTION 7.24. Section 2023.004(d), Occupations Code, is
	3642	+	amended to read as follows:
	3643	+	(d) The department [commission] shall post at each
	3644	+	racetrack notice of a meeting of the commission [under Subsection
	3645	+	(c)] that includes an agenda of the meeting and a summary of the
	3646	+	proposed rule.
	3647	+	SECTION 7.25. Section 2023.006, Occupations Code, is
	3648	+	amended to read as follows:
	3649	+	Sec. 2023.006. CONSIDERATION OF PAST PERFORMANCE OF
	3650	+	RACETRACK ASSOCIATION. In considering a pleading of a racetrack
	3651	+	association, the department [commission] shall take into account
	3652	+	the operating experience of the racetrack association in this
	3653	+	state, including:
	3654	+	(1) the financial condition of the racetrack;
	3655	+	(2) the regulatory compliance and conduct; and
	3656	+	(3) any other relevant matter concerning the operation
	3657	+	of a racetrack.
	3658	+	SECTION 7.26. Section 2023.007, Occupations Code, is
	3659	+	amended to read as follows:
	3660	+	Sec. 2023.007. RIGHT OF ENTRY. A commission member, a
	3661	+	department employee, an authorized department [commission] agent
	3662	+	or peace officer, a commissioned officer of the Department of
	3663	+	Public Safety, or a peace officer of the local jurisdiction in which
	3664	+	a racetrack association maintains a place of business may enter any
	3665	+	part of a racetrack or any other place of business of a racetrack
	3666	+	association at any time to enforce and administer this subtitle.
	3667	+	SECTION 7.27. Section 2023.008, Occupations Code, is
	3668	+	amended to read as follows:
	3669	+	Sec. 2023.008. TESTIMONY AND SUBPOENA POWER. (a) For
	3670	+	purposes of this section, "agent" means an appointed agent of the
	3671	+	department [commission].
	3672	+	(b) A department employee [commission member] or an agent,
	3673	+	while involved in carrying out functions under this subtitle, may:
	3674	+	(1) take testimony;
	3675	+	(2) require by subpoena the attendance of a witness;
	3676	+	and
	3677	+	(3) require the production of books, records, papers,
	3678	+	correspondence, and other documents that the commission considers
	3679	+	advisable.
	3680	+	(c) A subpoena must be issued under the signature of the
	3681	+	executive director or the executive director's designee
	3682	+	[commission or an agent]. A person designated by the executive
	3683	+	director [commission] must serve the subpoena.
	3684	+	(d) A department employee [commission member] or an agent
	3685	+	may administer an oath to a witness appearing before the department
	3686	+	[commission] or an agent.
	3687	+	(e) If a subpoena issued under this section is disobeyed,
	3688	+	the department [commission] or an agent may invoke the aid of a
	3689	+	Travis County district court in requiring compliance with the
	3690	+	subpoena. A Travis County district court may issue an order
	3691	+	requiring the person to appear and testify and to produce books,
	3692	+	records, papers, correspondence, and documents. Failure to obey
	3693	+	the court order shall be punished by the court as contempt.
	3694	+	SECTION 7.28. Sections 2023.051 and 2023.052, Occupations
	3695	+	Code, are amended to read as follows:
	3696	+	Sec. 2023.051. RECOGNITION OF ORGANIZATION. (a) The
	3697	+	commission by rule shall adopt criteria to recognize an
	3698	+	organization to represent members of a segment of the racing
	3699	+	industry, including owners, breeders, trainers, kennel operators,
	3700	+	or other persons involved in the racing industry, in any
	3701	+	interaction between the members of the organization and a racetrack
	3702	+	association or the department [commission].
	3703	+	(b) The department [commission] may recognize an
	3704	+	organization that meets the criteria adopted under Subsection (a).
	3705	+	Sec. 2023.052. SECURITY FOR FEES AND CHARGES. The
	3706	+	department [commission] may require a racetrack association to post
	3707	+	security in an amount and form determined by the department
	3708	+	[commission] to adequately ensure the payment of any fee or charge
	3709	+	due to this state or the department [commission] relating to
	3710	+	pari-mutuel racing, including a charge for drug testing.
	3711	+	SECTION 7.29. Section 2023.053(f), Occupations Code, is
	3712	+	amended to read as follows:
	3713	+	(f) This section does not apply to:
	3714	+	(1) money deposited into the Texas-bred incentive fund
	3715	+	established under Section 2028.301; or
	3716	+	(2) an administrative penalty remitted to the
	3717	+	comptroller for deposit in the general revenue fund under Section
	3718	+	2033.058.
	3719	+	SECTION 7.30. The heading to Section 2023.054, Occupations
	3720	+	Code, is amended to read as follows:
	3721	+	Sec. 2023.054. [COMMISSION] STANDARDS ON GREYHOUND FARMS
	3722	+	AND FACILITIES.
	3723	+	SECTION 7.31. Sections 2023.056, 2023.057, 2023.058,
	3724	+	2023.059, and 2023.061, Occupations Code, are amended to read as
	3725	+	follows:
	3726	+	Sec. 2023.056. COOPERATION WITH LAW ENFORCEMENT. (a) The
	3727	+	department [commission] shall cooperate with a district attorney, a
	3728	+	criminal district attorney, a county attorney, the Department of
	3729	+	Public Safety, the attorney general, or a peace officer in
	3730	+	enforcing this subtitle.
	3731	+	(b) The department [commission], under department
	3732	+	[commission] authority to obtain criminal history record
	3733	+	information under Section 2023.057, shall maintain and exchange
	3734	+	pertinent intelligence data with other states and agencies.
	3735	+	Sec. 2023.057. ACCESS TO CRIMINAL HISTORY RECORDS. The
	3736	+	department [commission] may obtain criminal history record
	3737	+	information that relates to each applicant for [employment by the
	3738	+	commission and to each applicant for] a license issued under this
	3739	+	subtitle by the department, including an occupational license
	3740	+	described by Section 2025.251(c), [commission] and that is
	3741	+	maintained by the Department of Public Safety or the Federal Bureau
	3742	+	of Investigation Identification Division. The department
	3743	+	[commission] may refuse to issue a license to [recommend] an
	3744	+	applicant who fails to provide a complete set of fingerprints.
	3745	+	Sec. 2023.058. COST OF CRIMINAL HISTORY RECORD CHECK. (a)
	3746	+	The commission shall, in determining the amount of a license fee,
	3747	+	set the fee in at least an amount necessary to cover the cost to the
	3748	+	department of conducting a criminal history record check on a
	3749	+	license applicant.
	3750	+	(b) The department [commission] shall reimburse the
	3751	+	Department of Public Safety for the cost of conducting a criminal
	3752	+	history record check under this subtitle.
	3753	+	Sec. 2023.059. DISTANCE LEARNING. The department
	3754	+	[commission] may provide assistance to members of the racing
	3755	+	industry who are attempting to develop or implement adult, youth,
	3756	+	or continuing education programs that use distance learning.
	3757	+	Sec. 2023.061. BIENNIAL [ANNUAL] REPORT. (a) Not later
	3758	+	than January 31 of each odd-numbered year, the department
	3759	+	[commission] shall file a report with the governor, lieutenant
	3760	+	governor, and speaker of the house of representatives.
	3761	+	(b) The report must cover the operations of the department
	3762	+	under this subtitle [commission] and the condition of horse
	3763	+	breeding and racing and greyhound breeding and racing during the
	3764	+	preceding two-year period [previous year].
	3765	+	(c) The department [commission] shall obtain from the
	3766	+	Department of Public Safety a comprehensive report of any organized
	3767	+	crime activities in this state [that the department may wish to
	3768	+	report] and information concerning illegal gambling that may be
	3769	+	related to this subtitle known to exist in this state. The
	3770	+	department [commission] shall include in the biennial [annual]
	3771	+	report the Department of Public Safety's [department's] report and
	3772	+	any recommendations the department [commission] considers
	3773	+	appropriate.
	3774	+	SECTION 7.32. Sections 2023.101(b), (c), and (d),
	3775	+	Occupations Code, are amended to read as follows:
	3776	+	(b) The department [commission] shall employ or contract
	3777	+	with each steward and judge for the supervision of a horse race or
	3778	+	greyhound race meeting.
	3779	+	(c) The department [commission] shall designate one steward
	3780	+	or judge, as appropriate, as the presiding steward or judge for each
	3781	+	race meeting.
	3782	+	(d) Following the completion of a race meeting, a racetrack
	3783	+	association may submit to the department [commission] for the
	3784	+	department's [commission's] review written comments regarding the
	3785	+	job performance of the stewards and judges. A racetrack
	3786	+	association's comments submitted under this section are not
	3787	+	binding, in any way, on the department [commission].
	3788	+	SECTION 7.33. Section 2023.102(a), Occupations Code, is
	3789	+	amended to read as follows:
	3790	+	(a) The department [commission] shall require each steward
	3791	+	or judge to annually take and pass a written examination and a
	3792	+	medical examination.
	3793	+	SECTION 7.34. Section 2023.103, Occupations Code, is
	3794	+	amended to read as follows:
	3795	+	Sec. 2023.103. [EMPLOYMENT OF] STATE VETERINARIANS. For
	3796	+	each race meeting, the department [commission] shall employ or
	3797	+	contract for at least one state veterinarian.
	3798	+	SECTION 7.35. Section 2023.104(b), Occupations Code, is
	3799	+	amended to read as follows:
	3800	+	(b) The fee amount for compensating each steward, judge, and
	3801	+	state veterinarian must be reasonable according to industry
	3802	+	standards for the compensation of those officials at other
	3803	+	racetracks and may not exceed the actual cost to the department
	3804	+	[commission] for compensating the officials.
	3805	+	SECTION 7.36. Section 2023.105, Occupations Code, is
	3806	+	amended to read as follows:
	3807	+	Sec. 2023.105. EMPLOYMENT OF OTHER RACETRACK OFFICIALS.
	3808	+	The racetrack association shall appoint, with the department's
	3809	+	[commission's] approval, all racetrack officials other than the
	3810	+	officials listed in Section 2023.104. Compensation for officials
	3811	+	not compensated by the department [commission] is determined by the
	3812	+	racetrack association.
	3813	+	SECTION 7.37. Section 2023.106(b), Occupations Code, is
	3814	+	amended to read as follows:
	3815	+	(b) The commission shall adopt rules that specify:
	3816	+	(1) the power and duties of each race meeting
	3817	+	official, including the power of a steward or judge to impose
	3818	+	penalties for unethical practices or violations of racing rules;
	3819	+	and
	3820	+	(2) procedures for hearings conducted under this
	3821	+	section.
	3822	+	SECTION 7.38. Section 2023.109, Occupations Code, is
	3823	+	amended by adding Subsection (c) to read as follows:
	3824	+	(c) The commission may adopt rules specifying the
	3825	+	requirements for appealing a decision and eligibility of orders for
	3826	+	consideration under this section.
	3827	+	SECTION 7.39. Section 2024.002(a), Occupations Code, is
	3828	+	amended to read as follows:
	3829	+	(a) The comptroller may inspect all books, records, and
	3830	+	financial statements required by the commission or obtained by the
	3831	+	department under Section 2022.105.
	3832	+	SECTION 7.40. Sections 2024.053(a) and (b), Occupations
	3833	+	Code, are amended to read as follows:
	3834	+	(a) The comptroller shall certify to the department
	3835	+	[commission] the fact that a racetrack association or totalisator
	3836	+	company:
	3837	+	(1) does not comply with a rule adopted by the
	3838	+	comptroller under this chapter;
	3839	+	(2) refuses to allow access to or inspection of any of
	3840	+	the racetrack association's or totalisator company's required
	3841	+	books, records, or financial statements;
	3842	+	(3) refuses to allow access to or inspection of the
	3843	+	totalisator system; or
	3844	+	(4) becomes delinquent for:
	3845	+	(A) the state's share of a pari-mutuel pool; or
	3846	+	(B) any other tax collected by the comptroller.
	3847	+	(b) With regard to the state's share of a pari-mutuel pool
	3848	+	and any penalty related to the state's share, the comptroller,
	3849	+	acting independently of the department [commission], may take any
	3850	+	collection or enforcement action authorized under the Tax Code
	3851	+	against a delinquent taxpayer.
	3852	+	SECTION 7.41. Sections 2025.001 and 2025.002, Occupations
	3853	+	Code, are amended to read as follows:
	3854	+	Sec. 2025.001. COMMISSION AND DEPARTMENT LICENSING DUTIES.
	3855	+	(a) To preserve and protect the public health, welfare, and safety,
	3856	+	the commission shall adopt rules relating to license applications
	3857	+	and the financial responsibility [, moral character,] and ability
	3858	+	of applicants.
	3859	+	(b) The department [commission] shall prescribe application
	3860	+	forms for licenses issued under this subtitle and shall provide
	3861	+	each occupational license holder with a credential.
	3862	+	(c) The commission shall [annually] prescribe reasonable
	3863	+	license fees for each category of license issued under this
	3864	+	subtitle.
	3865	+	(d) The commission by rule shall set fees in amounts
	3866	+	reasonable and necessary to cover the department's [commission's]
	3867	+	costs of regulating, overseeing, and licensing live and simulcast
	3868	+	racing at racetracks.
	3869	+	Sec. 2025.002. LICENSE AS PRIVILEGE. The operation of a
	3870	+	racetrack and the participation in racing are privileges, not
	3871	+	rights, granted only by the department [commission] by license and
	3872	+	subject to reasonable and necessary conditions set by the
	3873	+	commission and department.
	3874	+	SECTION 7.42. Sections 2025.003(a), (c), (d), and (e),
	3875	+	Occupations Code, are amended to read as follows:
	3876	+	(a) An applicant for a license or license renewal under this
	3877	+	subtitle must, except as otherwise provided by Section 2025.261,
	3878	+	submit to the department [commission] a complete set of
	3879	+	fingerprints for:
	3880	+	(1) the applicant; or
	3881	+	(2) if the applicant is not an individual, each
	3882	+	officer or director of, and each person who owns at least a five
	3883	+	percent interest in, the applicant.
	3884	+	(c) A peace officer of any state[,] or any department
	3885	+	employee designated by the executive director [district office of
	3886	+	the commission,] shall take the fingerprints of an applicant for a
	3887	+	license or license renewal on forms approved and furnished by the
	3888	+	Department of Public Safety and immediately deliver the forms to
	3889	+	the department [commission].
	3890	+	(d) If a complete set of fingerprints is required by the
	3891	+	department [commission], the department [commission] shall, not
	3892	+	later than the 10th business day after the date the department
	3893	+	[commission] receives the fingerprints, forward the fingerprints
	3894	+	to the Department of Public Safety or the Federal Bureau of
	3895	+	Investigation. If the fingerprints are forwarded to the Department
	3896	+	of Public Safety, the Department of Public Safety [department]
	3897	+	shall:
	3898	+	(1) classify the fingerprints and check the
	3899	+	fingerprints against the Department of Public Safety's
	3900	+	[department's] fingerprint files; and
	3901	+	(2) report to the department [commission] the
	3902	+	Department of Public Safety's [department's] findings concerning
	3903	+	the existence or lack of a criminal record of the applicant.
	3904	+	(e) The department [commission] may not issue a racetrack
	3905	+	license until the report under Subsection (d) is made to the
	3906	+	department [commission]. The department [commission] may issue a
	3907	+	temporary occupational license before the report is made to the
	3908	+	department [commission].
	3909	+	SECTION 7.43. Section 2025.051, Occupations Code, is
	3910	+	amended to read as follows:
	3911	+	Sec. 2025.051. RACETRACK LICENSE REQUIRED; CRIMINAL
	3912	+	PENALTY. A person may not conduct wagering on a horse or greyhound
	3913	+	race meeting without first obtaining a racetrack license issued by
	3914	+	the department [commission]. A person who violates this section
	3915	+	commits an offense.
	3916	+	SECTION 7.44. Sections 2025.052(a) and (b), Occupations
	3917	+	Code, are amended to read as follows:
	3918	+	(a) The department [commission] shall require each
	3919	+	applicant for an original racetrack license to submit an
	3920	+	application, on a form prescribed by the department [commission],
	3921	+	containing the following information:
	3922	+	(1) if the applicant is an individual:
	3923	+	(A) the individual's full name;
	3924	+	(B) the individual's date of birth;
	3925	+	(C) the individual's physical description;
	3926	+	(D) the individual's current address and
	3927	+	telephone number; and
	3928	+	(E) a statement by the individual disclosing any
	3929	+	arrest or conviction for a felony or for a misdemeanor, except a
	3930	+	misdemeanor under Subtitle C, Title 7, Transportation Code, or a
	3931	+	similar misdemeanor traffic offense;
	3932	+	(2) if the applicant is a corporation:
	3933	+	(A) the state of incorporation;
	3934	+	(B) the names and addresses of the corporation's
	3935	+	agents for service of process in this state;
	3936	+	(C) the name and address of each officer and
	3937	+	director of the corporation;
	3938	+	(D) the name and address of each stockholder of
	3939	+	the corporation;
	3940	+	(E) for each individual named under this
	3941	+	subdivision, the information required by Subdivision (1); and
	3942	+	(F) identification of:
	3943	+	(i) any other beneficial owner of a share in
	3944	+	the applicant that has absolute or contingent voting rights;
	3945	+	(ii) any other person who directly or
	3946	+	indirectly exercises any participation in the applicant; and
	3947	+	(iii) any other ownership interest in the
	3948	+	applicant that the applicant making its best effort is able to
	3949	+	identify;
	3950	+	(3) if the applicant is an unincorporated business
	3951	+	association:
	3952	+	(A) the name and address of each member of the
	3953	+	association and, for each individual named under this subdivision,
	3954	+	the information required by Subdivision (1); and
	3955	+	(B) identification of:
	3956	+	(i) any other person who exercises voting
	3957	+	rights in the applicant or directly or indirectly exercises any
	3958	+	participation in the applicant; and
	3959	+	(ii) any other ownership interest in the
	3960	+	applicant that the applicant making its best effort is able to
	3961	+	identify;
	3962	+	(4) the exact location at which a race meeting is to be
	3963	+	conducted;
	3964	+	(5) if the racetrack is in existence, whether it is
	3965	+	owned by the applicant and, if leased to the applicant:
	3966	+	(A) the name and address of the owner; and
	3967	+	(B) if the owner is a corporation or
	3968	+	unincorporated business association, the name and address of each
	3969	+	officer and director, any stockholder or member, and each agent for
	3970	+	service of process in this state;
	3971	+	(6) if construction of the racetrack has not been
	3972	+	initiated, whether it is to be owned by the applicant and, if it is
	3973	+	to be leased to the applicant:
	3974	+	(A) the name and address of the prospective
	3975	+	owner; and
	3976	+	(B) if the owner is a corporation or
	3977	+	unincorporated business association, the information required by
	3978	+	Subdivision (5)(B);
	3979	+	(7) identification of:
	3980	+	(A) any other beneficial owner of a share that
	3981	+	has absolute or contingent voting rights in the owner or
	3982	+	prospective owner of the racetrack;
	3983	+	(B) any other person that directly or indirectly
	3984	+	exercises any participation in the owner or prospective owner; and
	3985	+	(C) all other ownership interest in the owner or
	3986	+	prospective owner that the applicant making its best effort is able
	3987	+	to identify;
	3988	+	(8) a detailed statement of the applicant's assets and
	3989	+	liabilities;
	3990	+	(9) the type of racing to be conducted and the dates
	3991	+	requested;
	3992	+	(10) proof of residency as required by Section
	3993	+	2025.201; and
	3994	+	(11) any other information required by the department
	3995	+	[commission].
	3996	+	(b) An application must be attested [sworn] to:
	3997	+	(1) by the applicant; or
	3998	+	(2) if the applicant is a corporation or association,
	3999	+	by its chief executive officer.
	4000	+	SECTION 7.45. Sections 2025.053(a) and (c), Occupations
	4001	+	Code, are amended to read as follows:
	4002	+	(a) The department [commission] shall require each
	4003	+	applicant for an original racetrack license to pay the required
	4004	+	application fee. The fee must accompany the application and be paid
	4005	+	in the form of a cashier's check, [or] certified check, or other
	4006	+	form of payment acceptable to the department.
	4007	+	(c) Notwithstanding this section, if a licensed racetrack
	4008	+	petitions for a higher racetrack classification, the department
	4009	+	[commission] shall impose fees equal to the difference between the
	4010	+	fees previously paid and the fees required for the higher
	4011	+	classification.
	4012	+	SECTION 7.46. Sections 2025.054(a) and (b), Occupations
	4013	+	Code, are amended to read as follows:
	4014	+	(a) The department [commission] shall require each
	4015	+	applicant for an original racetrack license to submit with the
	4016	+	application for inspection and review by the department
	4017	+	[commission] a copy of each management, concession, and totalisator
	4018	+	contract associated with the proposed license at the proposed
	4019	+	location in which the applicant has an interest.
	4020	+	(b) An applicant or license holder shall:
	4021	+	(1) advise the department [commission] of any change
	4022	+	in any management, concession, or totalisator contract; and
	4023	+	(2) at the request of the department, provide any
	4024	+	information the department considers necessary to review the
	4025	+	change.
	4026	+	SECTION 7.47. Sections 2025.055 and 2025.056, Occupations
	4027	+	Code, are amended to read as follows:
	4028	+	Sec. 2025.055. CONFIDENTIALITY OF APPLICATION DOCUMENTS.
	4029	+	Documents submitted to the department [commission] under Sections
	4030	+	2025.051-2025.054 by an applicant are subject to discovery in a
	4031	+	suit brought under this subtitle but are not public records and are
	4032	+	not subject to Chapter 552, Government Code.
	4033	+	Sec. 2025.056. BACKGROUND CHECK. (a) The department
	4034	+	[commission] shall require a complete personal, financial, and
	4035	+	business background check of the applicant or of any person who owns
	4036	+	an interest in or exercises control over an applicant for a
	4037	+	racetrack license, including the partners, stockholders,
	4038	+	concessionaires, management personnel, management firms, and
	4039	+	creditors.
	4040	+	(b) The department may [commission shall] refuse to issue or
	4041	+	renew a license or may revoke a license if [, in the commission's
	4042	+	sole discretion,] the background checks reveal anything that may be
	4043	+	detrimental to the public interest or the racing industry. A
	4044	+	proceeding under this section is subject to Subchapter G, Chapter
	4045	+	51.
	4046	+	(c) The executive director [commission] may not hold a
	4047	+	hearing on the application, or any part of the application, of a
	4048	+	racetrack license applicant before the 14th day after the date the
	4049	+	completed background check of the applicant has been on file with
	4050	+	the department [commission].
	4051	+	SECTION 7.48. Section 2025.057(a), Occupations Code, is
	4052	+	amended to read as follows:
	4053	+	(a) The department [commission] may, at any time, require a
	4054	+	holder of or applicant for a racetrack license to post security in
	4055	+	an amount reasonably necessary, as provided by commission rule, to
	4056	+	adequately ensure the license holder's or applicant's compliance
	4057	+	with substantive requirements of this subtitle and commission
	4058	+	rules.
	4059	+	SECTION 7.49. Section 2025.058, Occupations Code, is
	4060	+	amended to read as follows:
	4061	+	Sec. 2025.058. NOTIFICATION OF COMPLETED APPLICATION. When
	4062	+	all requirements for the applicant's licensure described in this
	4063	+	chapter have been satisfied, the department [commission] shall
	4064	+	notify the applicant that the application is complete.
	4065	+	SECTION 7.50. Sections 2025.101(b), (c), (e), and (f),
	4066	+	Occupations Code, are amended to read as follows:
	4067	+	(b) In considering an application for a horse racetrack
	4068	+	license under this chapter, the department [commission] shall give
	4069	+	additional weight to evidence concerning an applicant who has
	4070	+	experience operating a horse racetrack licensed under this
	4071	+	subtitle.
	4072	+	(c) The department [commission] may not issue a license to
	4073	+	operate a class 1 or class 2 racetrack or a greyhound racetrack to a
	4074	+	corporation unless:
	4075	+	(1) the corporation is incorporated under the laws of
	4076	+	this state; and
	4077	+	(2) a majority of any of its corporate stock is owned
	4078	+	at all times by individuals who meet the residency qualifications
	4079	+	prescribed by Section 2025.201 for individual applicants.
	4080	+	(e) Subsections (c) and (d) and Section 2025.201(a)(10)
	4081	+	[2025.201(a)(12)] do not apply to an applicant for or the holder of
	4082	+	a racetrack license if the applicant, the license holder, or the
	4083	+	license holder's parent company is a publicly traded company.
	4084	+	(f) The department [commission] may condition the issuance
	4085	+	of a license under this chapter on the observance of commission
	4086	+	rules. [The commission may amend the rules at any time and may
	4087	+	condition the continued holding of the license on compliance with
	4088	+	the rules as amended.]
	4089	+	SECTION 7.51. Section 2025.102, Occupations Code, is
	4090	+	amended to read as follows:
	4091	+	Sec. 2025.102. QUALIFICATIONS FOR ISSUANCE OF RACETRACK
	4092	+	LICENSE. (a) The department [commission] may issue a racetrack
	4093	+	license to a qualified person if the department [commission]:
	4094	+	(1) determines that the conduct of race meetings at
	4095	+	the proposed racetrack and location:
	4096	+	(A) will be in the public interest;
	4097	+	(B) complies with all zoning laws; and
	4098	+	(C) complies with this subtitle and commission
	4099	+	rules; and
	4100	+	(2) determines by clear and convincing evidence that
	4101	+	the applicant will comply with all criminal laws of this state.
	4102	+	(b) In determining whether to grant or deny an application
	4103	+	for any class of racetrack license, the department [commission] may
	4104	+	consider:
	4105	+	(1) the applicant's financial stability;
	4106	+	(2) the applicant's resources for supplementing the
	4107	+	purses for races for various breeds;
	4108	+	(3) the location of the proposed racetrack;
	4109	+	(4) the effect of the proposed racetrack on traffic
	4110	+	flow;
	4111	+	(5) facilities for patrons and occupational license
	4112	+	holders;
	4113	+	(6) facilities for race animals;
	4114	+	(7) availability to the racetrack of support services
	4115	+	and emergency services;
	4116	+	(8) the experience of the applicant's employees;
	4117	+	(9) the potential for conflict with other licensed
	4118	+	race meetings;
	4119	+	(10) the anticipated effect of the race meeting on the
	4120	+	horse or greyhound breeding industry in this state; and
	4121	+	(11) the anticipated effect of the race meeting on the
	4122	+	state and local economy from tourism, increased employment, and
	4123	+	other sources.
	4124	+	(c) The department [commission] shall make a determination
	4125	+	on a pending application not later than the 120th day after the date
	4126	+	the department [commission] provides the notice required under
	4127	+	Section 2025.058.
	4128	+	SECTION 7.52. Sections 2025.103(a), (c), and (d),
	4129	+	Occupations Code, are amended to read as follows:
	4130	+	(a) After a racetrack association has been granted a license
	4131	+	to operate a racetrack and before the completion of construction at
	4132	+	the designated place for which the license was issued, the
	4133	+	department [commission] may, on application by the racetrack
	4134	+	association, issue a temporary license that authorizes the
	4135	+	racetrack association to conduct races at a location in the same
	4136	+	county until the earlier of:
	4137	+	(1) the second anniversary of the date of issuance of
	4138	+	the temporary license; or
	4139	+	(2) the completion of the permanent facility.
	4140	+	(c) The department [commission] may set conditions and
	4141	+	standards for issuance of a temporary license and allocation of
	4142	+	appropriate race days.
	4143	+	(d) The department [commission] may not issue a new
	4144	+	temporary license or an extension of a temporary license to a person
	4145	+	or to an individual belonging to a corporation or association that
	4146	+	has been granted a temporary license after the temporary license
	4147	+	has expired.
	4148	+	SECTION 7.53. Sections 2025.104(a), (b), and (d),
	4149	+	Occupations Code, are amended to read as follows:
	4150	+	(a) The department [commission] shall designate each
	4151	+	racetrack license as an active license or an inactive license. The
	4152	+	department [commission] may change the designation of a racetrack
	4153	+	license as appropriate.
	4154	+	(b) The department [commission] shall designate a racetrack
	4155	+	license as an active license if the license holder:
	4156	+	(1) holds live racing events at the racetrack; or
	4157	+	(2) makes good faith efforts to conduct live racing.
	4158	+	(d) Before the first anniversary of the date a new racetrack
	4159	+	license is issued, the department [commission] shall conduct an
	4160	+	evaluation of the license to determine whether the license is an
	4161	+	active or inactive license.
	4162	+	SECTION 7.54. Section 2025.105, Occupations Code, is
	4163	+	amended by amending Subsections (a), (b), (c), (d), and (e) and
	4164	+	adding Subsection (g) to read as follows:
	4165	+	(a) The commission by rule shall establish an annual renewal
	4166	+	process for inactive licenses and may require the license holder to
	4167	+	provide any information required for an original license
	4168	+	application under this subtitle. An inactive license holder must
	4169	+	complete the annual renewal process established under this section
	4170	+	until the department [commission]:
	4171	+	(1) designates the license as an active license; or
	4172	+	(2) refuses to renew the license.
	4173	+	(b) In determining whether to renew an inactive license, the
	4174	+	department [commission] shall consider:
	4175	+	(1) the inactive license holder's:
	4176	+	(A) financial stability;
	4177	+	(B) ability to conduct live racing;
	4178	+	(C) ability to construct and maintain a
	4179	+	racetrack; and
	4180	+	(D) other good faith efforts to conduct live
	4181	+	racing; and
	4182	+	(2) other necessary factors considered in the issuance
	4183	+	of the original license.
	4184	+	(c) The department [commission] may refuse to renew an
	4185	+	inactive license if, after notice and opportunity for a hearing,
	4186	+	the department [commission] determines that:
	4187	+	(1) renewal of the license is not in the best interests
	4188	+	of the racing industry or the public; or
	4189	+	(2) the license holder has failed to make a good faith
	4190	+	effort to conduct live racing.
	4191	+	(d) The department [commission] shall consult with the
	4192	+	advisory board, members of the racing industry, and other key
	4193	+	stakeholders in developing the license renewal process under this
	4194	+	section.
	4195	+	(e) The commission shall set and the department shall
	4196	+	collect renewal fees in amounts reasonable and necessary to cover
	4197	+	the costs of administering and enforcing this section.
	4198	+	(g) A proceeding under this section is a contested case for
	4199	+	purposes of Chapter 2001, Government Code.
	4200	+	SECTION 7.55. Section 2025.106, Occupations Code, is
	4201	+	amended to read as follows:
	4202	+	Sec. 2025.106. DEPARTMENT [COMMISSION] REVIEW OF ACTIVE
	4203	+	RACETRACK LICENSE; FEE. (a) The department [commission] shall
	4204	+	review the ownership and management of an active license issued
	4205	+	under this chapter every five years beginning on the fifth
	4206	+	anniversary of the date of issuance of the license.
	4207	+	(b) In performing the review, the department [commission]
	4208	+	may require the license holder to provide any information that
	4209	+	would be required to be provided in connection with an original
	4210	+	license application under this chapter.
	4211	+	(c) The department [commission] shall charge fees for the
	4212	+	review in amounts set by the commission as sufficient to implement
	4213	+	this section.
	4214	+	SECTION 7.56. Section 2025.107(b), Occupations Code, is
	4215	+	amended to read as follows:
	4216	+	(b) If the death of any person causes a violation of the
	4217	+	licensing provisions of this subtitle, the department [commission]
	4218	+	may issue, in accordance with commission rules, a temporary license
	4219	+	for a period not to exceed one year.
	4220	+	SECTION 7.57. Sections 2025.108 and 2025.151, Occupations
	4221	+	Code, are amended to read as follows:
	4222	+	Sec. 2025.108. RACETRACK LICENSE ANNUAL FEE. The
	4223	+	commission may prescribe a reasonable annual fee to be paid to the
	4224	+	department by each racetrack license holder. The fee must be in an
	4225	+	amount sufficient to provide that the total amount of fees imposed
	4226	+	under this section, the license fees prescribed under Section
	4227	+	2025.001(c), and the renewal fees prescribed under Section
	4228	+	2025.105(e) are sufficient to cover the costs of administering and
	4229	+	enforcing this subtitle.
	4230	+	Sec. 2025.151. LIMITATION ON NUMBER OF GREYHOUND RACETRACK
	4231	+	LICENSES. The department [commission] may not issue licenses for
	4232	+	more than three greyhound racetracks in this state.
	4233	+	SECTION 7.58. Section 2025.201, Occupations Code, is
	4234	+	amended by amending Subsections (a) and (c) and adding Subsection
	4235	+	(d) to read as follows:
	4236	+	(a) The department [commission] may refuse to issue a
	4237	+	racetrack license or may revoke or suspend a license if, after
	4238	+	notice and opportunity for a hearing, the department [commission]
	4239	+	finds that the applicant or license holder, as appropriate:
	4240	+	(1) has been convicted of a violation of this subtitle
	4241	+	or a commission rule, or has aided, abetted, or conspired to commit
	4242	+	a violation of this subtitle or a commission rule;
	4243	+	(2) has been convicted of or placed on deferred
	4244	+	adjudication for a felony or misdemeanor [a crime involving moral
	4245	+	turpitude, including a conviction for which the punishment received
	4246	+	was a suspended sentence, probation, or a nonadjudicated
	4247	+	conviction,] that is reasonably related to the person's present
	4248	+	fitness to hold a license under this subtitle;
	4249	+	(3) [has violated or has caused to be violated this
	4250	+	subtitle or a commission rule in a manner that involves moral
	4251	+	turpitude, as distinguished from a technical violation of this
	4252	+	subtitle or a rule;
	4253	+	[(4)] is unqualified, by experience or otherwise, to
	4254	+	perform the duties required of a license holder under this
	4255	+	subtitle;
	4256	+	(4) [(5)] failed to answer or falsely or incorrectly
	4257	+	answered a question in an application;
	4258	+	(5) [(6)] fails to disclose the true ownership or
	4259	+	interest in a horse or greyhound as required by commission rules;
	4260	+	(6) [(7)] is indebted to this state for any fee or for
	4261	+	the payment of a penalty imposed by this subtitle or a commission
	4262	+	rule;
	4263	+	(7) has developed an incapacity that prevents or could
	4264	+	prevent the applicant or license holder from conducting the
	4265	+	applicant's or license holder's business with reasonable skill and
	4266	+	competence and in a manner that does not endanger public safety;
	4267	+	(8) [is not of good moral character or the person's
	4268	+	reputation as a peaceable, law-abiding citizen in the community
	4269	+	where the person resides is bad;
	4270	+	[(9)] is not at least the minimum age necessary to
	4271	+	purchase alcoholic beverages in this state;
	4272	+	(9) [(10) is in the habit of using alcoholic beverages
	4273	+	to an excess or uses a controlled substance as defined by Chapter
	4274	+	481, Health and Safety Code, or a dangerous drug as defined in
	4275	+	Chapter 483, Health and Safety Code, or is mentally incapacitated;
	4276	+	[(11)] may be excluded from an enclosure under this
	4277	+	subtitle;
	4278	+	(10) [(12)] has not been a United States citizen
	4279	+	residing in this state for the 10 consecutive years preceding the
	4280	+	filing of the application;
	4281	+	(11) [(13)] has improperly used a credential,
	4282	+	including a license certificate or identification card, issued
	4283	+	under this subtitle;
	4284	+	(12) [(14)] resides with a person whose license was
	4285	+	revoked for cause during the 12 months preceding the date of the
	4286	+	present application;
	4287	+	(13) [(15) has failed or refused to furnish a true
	4288	+	copy of the application to the commission's district office in the
	4289	+	district in which the premises for which the license is sought are
	4290	+	located;
	4291	+	[(16)] is engaged or has engaged in activities or
	4292	+	practices the department [commission] determines are detrimental
	4293	+	to the best interests of the public and the sport of horse racing or
	4294	+	greyhound racing; or
	4295	+	(14) [(17)] fails to fully disclose the true owners of
	4296	+	all interests, beneficial or otherwise, in a proposed racetrack.
	4297	+	(c) The department [commission] may refuse to issue a
	4298	+	license or may suspend or revoke a license of a license holder under
	4299	+	this subchapter who knowingly or intentionally allows access to an
	4300	+	enclosure where horse races or greyhound races are conducted to a
	4301	+	person:
	4302	+	(1) who has engaged in bookmaking, touting, or illegal
	4303	+	wagering;
	4304	+	(2) whose income is from illegal activities or
	4305	+	enterprises; or
	4306	+	(3) who has been convicted of a violation of this
	4307	+	subtitle.
	4308	+	(d) A proceeding under this section is a contested case for
	4309	+	purposes of Chapter 2001, Government Code.
	4310	+	SECTION 7.59. Section 2025.202(b), Occupations Code, is
	4311	+	amended to read as follows:
	4312	+	(b) Notwithstanding the requirements of Section 2033.151,
	4313	+	if, after notice and opportunity for a hearing as provided by
	4314	+	Section 2033.152, the commission finds that a racetrack license
	4315	+	holder or a person employed by the racetrack has violated this
	4316	+	subtitle or a commission rule, or if the department [commission]
	4317	+	finds during a review or renewal that the racetrack is ineligible
	4318	+	for a license under this chapter, the commission may:
	4319	+	(1) revoke, suspend, or refuse to renew the racetrack
	4320	+	license;
	4321	+	(2) impose an administrative penalty as provided under
	4322	+	Section 2033.051; or
	4323	+	(3) take any other action as provided by commission
	4324	+	rule.
	4325	+	SECTION 7.60. Section 2025.203(a), Occupations Code, is
	4326	+	amended to read as follows:
	4327	+	(a) The executive director [commission] may summarily
	4328	+	suspend a racetrack license if the executive director [commission]
	4329	+	determines that a racetrack at which races or pari-mutuel wagering
	4330	+	are conducted under the license is being operated in a manner that
	4331	+	constitutes an immediate threat to the health, safety, or welfare
	4332	+	of the racing participants or the patrons.
	4333	+	SECTION 7.61. Section 2025.204(d), Occupations Code, is
	4334	+	amended to read as follows:
	4335	+	(d) At the hearing, the department [commission] has the
	4336	+	burden of proof and must present evidence in support of the order.
	4337	+	The license holder requesting the hearing may cross-examine
	4338	+	witnesses and show cause why the order should not be affirmed.
	4339	+	SECTION 7.62. Sections 2025.205, 2025.251, 2025.253,
	4340	+	2025.254, and 2025.255, Occupations Code, are amended to read as
	4341	+	follows:
	4342	+	Sec. 2025.205. SUMMARY SUSPENSION FINAL ORDER. (a) After
	4343	+	the hearing on the suspension of a racetrack license, the
	4344	+	commission [executive director] shall affirm, modify, or set aside,
	4345	+	wholly or partly, the summary suspension order. An order affirming
	4346	+	or modifying the summary suspension order is final for purposes of
	4347	+	enforcement and appeal.
	4348	+	(b) A final order under this section may be appealed in the
	4349	+	manner provided by Subchapter G, Chapter 2001, Government Code.
	4350	+	Sec. 2025.251. OCCUPATIONAL LICENSE REQUIRED. (a) Except
	4351	+	as provided by this section, a person, other than as a spectator or
	4352	+	as a person placing a wager, may not participate in racing with
	4353	+	pari-mutuel wagering without first obtaining a license from the
	4354	+	department [commission]. A person may not engage in any occupation
	4355	+	for which commission rules require a license under this subtitle
	4356	+	without first obtaining a license from the department [commission].
	4357	+	(b) The commission by rule shall categorize the occupations
	4358	+	of racetrack employees and determine the occupations that afford
	4359	+	the employee an opportunity to influence racing with pari-mutuel
	4360	+	wagering. The rules must require an employee to be licensed under
	4361	+	this subtitle if the employee:
	4362	+	(1) works in an occupation determined by the
	4363	+	department [commission] to afford the employee an opportunity to
	4364	+	influence racing with pari-mutuel wagering; or
	4365	+	(2) will likely have significant access to the
	4366	+	backside of a racetrack or to restricted areas of the frontside of a
	4367	+	racetrack.
	4368	+	(c) The commission by rule may require the following persons
	4369	+	to hold an occupational license under this subtitle:
	4370	+	(1) an adoption program employee;
	4371	+	(2) an announcer;
	4372	+	(3) an apprentice jockey;
	4373	+	(4) an assistant farrier, plater, or blacksmith;
	4374	+	(5) an assistant starter;
	4375	+	(6) an assistant trainer;
	4376	+	(7) an assistant trainer/owner;
	4377	+	(8) an association assistant management employee;
	4378	+	(9) an association management employee;
	4379	+	(10) an association officer or director;
	4380	+	(11) an association staff employee;
	4381	+	(12) an association employee other than an employee
	4382	+	described in this subsection;
	4383	+	(13) an association veterinarian;
	4384	+	(14) an authorized agent;
	4385	+	(15) a chaplain;
	4386	+	(16) a chaplain assistant;
	4387	+	(17) an equine dental provider;
	4388	+	(18) an exercise rider;
	4389	+	(19) a farrier, plater, or blacksmith;
	4390	+	(20) a groom/exercise rider;
	4391	+	(21) a groom/hot walker;
	4392	+	(22) a groom/pony person;
	4393	+	(23) a jockey;
	4394	+	(24) a jockey agent;
	4395	+	(25) a kennel helper;
	4396	+	(26) a kennel owner;
	4397	+	(27) a kennel owner/owner;
	4398	+	(28) a kennel owner/owner/trainer;
	4399	+	(29) a kennel owner/trainer;
	4400	+	(30) a kennel registration employee;
	4401	+	(31) a lead-out;
	4402	+	(32) a maintenance employee;
	4403	+	(33) a medical employee;
	4404	+	(34) miscellaneous racetrack employees;
	4405	+	(35) a multiple owner/stable/farm registration
	4406	+	employee;
	4407	+	(36) a mutuel clerk;
	4408	+	(37) a mutuel employee other than a clerk;
	4409	+	(38) an owner;
	4410	+	(39) an owner-trainer;
	4411	+	(40) a pony person;
	4412	+	(41) a racing industry representative;
	4413	+	(42) a racing industry employee;
	4414	+	(43) a racing official;
	4415	+	(44) a security officer;
	4416	+	(45) a stable foreman;
	4417	+	(46) a tattooer;
	4418	+	(47) a test technician;
	4419	+	(48) a trainer;
	4420	+	(49) a training facility employee;
	4421	+	(50) a training facility general manager;
	4422	+	(51) a valet;
	4423	+	(52) a vendor concessionaire;
	4424	+	(53) a vendor concessionaire employee;
	4425	+	(54) a vendor-totalisator company;
	4426	+	(55) a vendor-totalisator employee;
	4427	+	(56) a veterinarian; and
	4428	+	(57) a veterinarian assistant.
	4429	+	Sec. 2025.253. EXAMINATION NOTIFICATION. (a) If an
	4430	+	examination is required for the issuance of a license under this
	4431	+	subchapter, the department [commission] shall notify each examinee
	4432	+	of the results of the examination not later than the 30th day after
	4433	+	the date the licensing examination is administered under this
	4434	+	subtitle.
	4435	+	(b) If requested in writing by a person who fails a
	4436	+	licensing examination administered under this subtitle, the
	4437	+	department [commission] shall furnish the person with an analysis
	4438	+	of the person's performance on the examination.
	4439	+	Sec. 2025.254. ISSUANCE OF LICENSE. The department
	4440	+	[commission] shall issue a license to a qualified person on
	4441	+	application and payment of the license fee.
	4442	+	Sec. 2025.255. ISSUANCE OF IDENTIFICATION CARD. The
	4443	+	department [commission] shall issue a license certificate under
	4444	+	this subchapter in the form of an identification card with a
	4445	+	photograph and other information as prescribed by the department
	4446	+	[commission].
	4447	+	SECTION 7.63. Section 2025.256(c), Occupations Code, is
	4448	+	amended to read as follows:
	4449	+	(c) In setting the fee schedule under Subsection (a), the
	4450	+	commission shall include the cost of criminal history record
	4451	+	information obtained under Section 2023.058. The department
	4452	+	[commission] may determine the best method for recovering this cost
	4453	+	and complying with this section, including collecting the costs
	4454	+	over an extended period.
	4455	+	SECTION 7.64. Section 2025.258(a), Occupations Code, is
	4456	+	amended to read as follows:
	4457	+	(a) The department [commission] shall obtain criminal
	4458	+	history record information on each applicant renewing an
	4459	+	occupational license under this subchapter.
	4460	+	SECTION 7.65. Section 2025.259, Occupations Code, is
	4461	+	amended to read as follows:
	4462	+	Sec. 2025.259. LICENSE VALID THROUGHOUT STATE. A license
	4463	+	issued under this subchapter is valid, as determined by the
	4464	+	department [commission], at all race meetings conducted in this
	4465	+	state.
	4466	+	SECTION 7.66. Section 2025.260(a), Occupations Code, is
	4467	+	amended to read as follows:
	4468	+	(a) Pending investigation of an applicant's qualifications
	4469	+	to receive an original or renewal license, the department
	4470	+	[commission] may issue a temporary license to an applicant under
	4471	+	this subchapter whose application appears to comply with the
	4472	+	requirements of law and who has paid the necessary fee.
	4473	+	SECTION 7.67. Sections 2025.261 and 2025.262, Occupations
	4474	+	Code, are amended to read as follows:
	4475	+	Sec. 2025.261. RECIPROCAL LICENSES; OUT-OF-STATE
	4476	+	APPLICANTS. (a) The executive director [commission] may waive any
	4477	+	prerequisite to obtaining a license for an applicant, including any
	4478	+	requirement to submit a set of fingerprints, after reviewing the
	4479	+	applicant's credentials and determining that the applicant holds a
	4480	+	license from another state that has license requirements
	4481	+	substantially equivalent to the requirements of this state.
	4482	+	(b) The executive director [commission] may waive any
	4483	+	prerequisite to obtaining a license, including any requirement to
	4484	+	submit a set of fingerprints, for an applicant who holds a license
	4485	+	from another state with which this state has a reciprocity
	4486	+	agreement. The department [commission] may enter into agreements
	4487	+	with other states to allow for licensing by reciprocity.
	4488	+	Sec. 2025.262. GROUNDS FOR DENIAL, REVOCATION, AND
	4489	+	SUSPENSION OF OCCUPATIONAL LICENSE. (a) The department
	4490	+	[commission] may refuse to issue any original or renewal license
	4491	+	under this subchapter or may revoke or suspend the license if, after
	4492	+	notice and opportunity for a hearing, the department [commission]
	4493	+	finds that the applicant or license holder, as appropriate:
	4494	+	(1) has been convicted of a violation of this subtitle
	4495	+	or a commission rule or has aided, abetted, or conspired to commit a
	4496	+	violation of this subtitle or a commission rule;
	4497	+	(2) has been convicted of or placed on deferred
	4498	+	adjudication for a felony or misdemeanor [a crime involving moral
	4499	+	turpitude] that is reasonably related to the person's present
	4500	+	fitness to hold a license under this subtitle;
	4501	+	(3) [has violated or has caused to be violated this
	4502	+	subtitle or a commission rule in a manner that involves moral
	4503	+	turpitude, as distinguished from a technical violation of this
	4504	+	subtitle or a rule;
	4505	+	[(4)] is unqualified, by experience or otherwise, to
	4506	+	perform the duties required of a license holder under this
	4507	+	subtitle;
	4508	+	(4) [(5)] failed to answer or has falsely or
	4509	+	incorrectly answered a question in an original or renewal
	4510	+	application;
	4511	+	(5) [(6)] fails to disclose the true ownership or
	4512	+	interest in a horse or greyhound as required by commission rules;
	4513	+	(6) [(7)] is indebted to this state for any fee or for
	4514	+	the payment of a penalty imposed by this subtitle or a commission
	4515	+	rule;
	4516	+	(7) has developed an incapacity that prevents or could
	4517	+	prevent the applicant or license holder from conducting the
	4518	+	applicant's or license holder's business with reasonable skill and
	4519	+	competence and in a manner that does not endanger public safety;
	4520	+	(8) [is not of good moral character or the person's
	4521	+	reputation as a peaceable, law-abiding citizen in the community
	4522	+	where the person resides is bad;
	4523	+	[(9) is in the habit of using alcoholic beverages to an
	4524	+	excess or uses a controlled substance as defined in Chapter 481,
	4525	+	Health and Safety Code, or a dangerous drug as defined in Chapter
	4526	+	483, Health and Safety Code, or is mentally incapacitated;
	4527	+	[(10)] may be excluded from an enclosure under this
	4528	+	subtitle;
	4529	+	(9) [(11)] has improperly used a temporary pass,
	4530	+	license certificate, credential, or identification card issued
	4531	+	under this subtitle;
	4532	+	(10) [(12)] resides with a person whose license was
	4533	+	revoked for cause during the 12 months preceding the date of the
	4534	+	present application;
	4535	+	(11) [(13)] has failed or refused to furnish a true
	4536	+	copy of the application to the department's [commission's] district
	4537	+	office in the district in which the premises for which the license
	4538	+	is sought are located; or
	4539	+	(12) [(14)] is engaged or has engaged in activities or
	4540	+	practices that are detrimental to the best interests of the public
	4541	+	and the sport of horse racing or greyhound racing.
	4542	+	(b) A proceeding under this section is a contested case for
	4543	+	purposes of Chapter 2001, Government Code.
	4544	+	SECTION 7.68. Section 2026.003, Occupations Code, is
	4545	+	amended to read as follows:
	4546	+	Sec. 2026.003. FINANCIAL DISCLOSURE. (a) The commission
	4547	+	by rule shall require that each racetrack association that holds a
	4548	+	license for a class 1 racetrack, class 2 racetrack, or greyhound
	4549	+	racetrack annually file with the department [commission] a detailed
	4550	+	financial statement that:
	4551	+	(1) contains the names and addresses of all
	4552	+	stockholders, members, and owners of any interest in the racetrack;
	4553	+	(2) indicates compliance during the filing period with
	4554	+	Section 2025.101; and
	4555	+	(3) includes any other information required by the
	4556	+	department [commission].
	4557	+	(b) Each transaction that involves an acquisition or a
	4558	+	transfer of a pecuniary interest in the racetrack association must
	4559	+	receive prior approval from the department [commission]. A
	4560	+	transaction that changes the ownership of the racetrack association
	4561	+	requires submission of updated information of the type required to
	4562	+	be disclosed under Section 2025.052 and payment of a fee to recover
	4563	+	the costs of the criminal background check.
	4564	+	SECTION 7.69. Section 2026.004(b), Occupations Code, is
	4565	+	amended to read as follows:
	4566	+	(b) If the racetrack or enclosure designated in the license
	4567	+	becomes unsuitable for racing because of fire, flood, or other
	4568	+	catastrophe, the affected racetrack association, with the prior
	4569	+	approval of the executive director [commission], may conduct a race
	4570	+	meeting or any remaining portion of a meeting temporarily at any
	4571	+	other racetrack if the other racetrack license holder:
	4572	+	(1) is licensed by the department [commission] to
	4573	+	conduct the same type of racing as may be conducted by the affected
	4574	+	racetrack association; and
	4575	+	(2) consents to the usage.
	4576	+	SECTION 7.70. Sections 2026.005 and 2026.006, Occupations
	4577	+	Code, are amended to read as follows:
	4578	+	Sec. 2026.005. CHANGE OF RACING LOCATION. On request of a
	4579	+	racetrack association, the department [commission] shall amend a
	4580	+	racetrack license to change the location of the racetrack if the
	4581	+	department [commission] determines that:
	4582	+	(1) the conduct of race meetings at the proposed new
	4583	+	location will be in the public interest;
	4584	+	(2) there was not a competing applicant for the
	4585	+	original license; and
	4586	+	(3) the racetrack association's desire to change
	4587	+	location is not the result of a subterfuge in the original licensing
	4588	+	proceeding.
	4589	+	Sec. 2026.006. LEASE OF RACETRACK PREMISES. (a) The
	4590	+	commission by rule may provide for the department to authorize a
	4591	+	racetrack association, as lessee, to contract for the lease of a
	4592	+	racetrack and the surrounding structures.
	4593	+	(b) The department [commission] may not approve a lease if:
	4594	+	(1) the lease appears to be a subterfuge to evade
	4595	+	compliance with Section 2025.101 or 2025.201;
	4596	+	(2) the racetrack and surrounding structures do not
	4597	+	conform to the rules adopted under this subtitle; or
	4598	+	(3) the lessee, prospective lessee, or lessor is
	4599	+	disqualified from holding a racetrack license.
	4600	+	(c) Each lessor and lessee under this section must comply
	4601	+	with the disclosure requirements of Section 2025.052(a)(1). The
	4602	+	department [commission] may not approve a lease if the lessor and
	4603	+	lessee do not provide the required information.
	4604	+	SECTION 7.71. Section 2026.007(e), Occupations Code, is
	4605	+	amended to read as follows:
	4606	+	(e) The commission shall adopt rules implementing this
	4607	+	section, including rules:
	4608	+	(1) requiring the report and correction of:
	4609	+	(A) an inappropriate condition on the premises of
	4610	+	a racetrack, including a failure to properly maintain the premises,
	4611	+	that interferes with the administration of this subtitle; and
	4612	+	(B) a condition on the premises that makes the
	4613	+	premises unsafe for a race participant, patron, or animal; and
	4614	+	(2) determining the methods and manner by which the
	4615	+	executive director may determine and remedy inappropriate or unsafe
	4616	+	conditions on the premises, including the methods and manner in
	4617	+	which the department [executive director] may conduct inspections
	4618	+	of the premises and remedy emergency situations.
	4619	+	SECTION 7.72. Section 2026.008, Occupations Code, is
	4620	+	amended to read as follows:
	4621	+	Sec. 2026.008. SUPERVISION OF CONSTRUCTION, RENOVATION,
	4622	+	AND MAINTENANCE; ENFORCEMENT. (a) The commission by rule shall
	4623	+	adopt a method of supervising and approving the construction,
	4624	+	renovation, or maintenance of any building or improvement on the
	4625	+	premises of a racetrack.
	4626	+	(b) The commission shall adopt rules relating to:
	4627	+	(1) the approval of plans and specifications;
	4628	+	(2) the contents of plans and specifications;
	4629	+	(3) the maintenance of records to ensure compliance
	4630	+	with approved plans and specifications;
	4631	+	(4) the content and filing of construction progress
	4632	+	reports by the racetrack association to the department
	4633	+	[commission];
	4634	+	(5) the inspection by the department [commission] or
	4635	+	others;
	4636	+	(6) the method for making a change or amendment to an
	4637	+	approved plan or specification; and
	4638	+	(7) any other method of supervision or oversight
	4639	+	necessary.
	4640	+	(c) If the department [commission] has grounds to believe
	4641	+	that a racetrack association has failed to comply with the
	4642	+	requirements of this section, a representative of the racetrack
	4643	+	association shall appear before the commission or department to
	4644	+	consider the issue of compliance with rules adopted under this
	4645	+	section.
	4646	+	(d) Before a building or improvement may be used by a
	4647	+	racetrack association, the department [commission] shall determine
	4648	+	whether:
	4649	+	(1) the construction, renovation, or maintenance of
	4650	+	the building or improvement was completed in accordance with the
	4651	+	approved plans and specifications; and
	4652	+	(2) other [commission] requirements under this
	4653	+	subtitle were met.
	4654	+	(e) If the department [commission] determines that the
	4655	+	racetrack association failed to comply with a requirement of this
	4656	+	section or a rule adopted under this section, the department
	4657	+	[commission] shall initiate an enforcement action against the
	4658	+	racetrack association. In addition to any other authorized
	4659	+	enforcement action, the department [commission] may rescind any
	4660	+	live or simulcast race date of any racetrack association that has
	4661	+	failed to comply with the requirements of this section.
	4662	+	SECTION 7.73. Section 2026.013(b), Occupations Code, is
	4663	+	amended to read as follows:
	4664	+	(b) The department [commission] may impose disciplinary
	4665	+	action against a racetrack for violations of this subtitle and
	4666	+	commission rules by the racetrack's employees as provided by
	4667	+	Section 2025.202.
	4668	+	SECTION 7.74. Section 2026.051, Occupations Code, is
	4669	+	amended to read as follows:
	4670	+	Sec. 2026.051. COMMISSION RULES REGARDING EXCLUSION OR
	4671	+	EJECTION. The commission shall adopt rules providing for the
	4672	+	exclusion or ejection from an enclosure where horse or greyhound
	4673	+	races are conducted, or from specified portions of an enclosure, of
	4674	+	a person:
	4675	+	(1) who has engaged in bookmaking, touting, or illegal
	4676	+	wagering;
	4677	+	(2) whose income is from illegal activities or
	4678	+	enterprises;
	4679	+	(3) who has been convicted of a violation of this
	4680	+	subtitle;
	4681	+	(4) who has been convicted of theft;
	4682	+	(5) who has been convicted under the penal law of
	4683	+	another jurisdiction for committing an act that would have
	4684	+	constituted a violation of any rule described in this section;
	4685	+	(6) who has committed a corrupt or fraudulent act in
	4686	+	connection with horse or greyhound racing or pari-mutuel wagering
	4687	+	or who has committed any act tending or intended to corrupt horse or
	4688	+	greyhound racing or pari-mutuel wagering;
	4689	+	(7) who is under suspension or has been excluded or
	4690	+	ejected from a racetrack by the department [commission] or a
	4691	+	steward in this state or by a corresponding authority in another
	4692	+	state because of corrupt or fraudulent practices or other acts
	4693	+	detrimental to racing;
	4694	+	(8) who has submitted a forged pari-mutuel ticket or
	4695	+	has altered or forged a pari-mutuel ticket for cashing or who has
	4696	+	cashed or caused to be cashed an altered, raised, or forged
	4697	+	pari-mutuel ticket;
	4698	+	(9) [who has been convicted of committing a lewd or
	4699	+	lascivious act or other crime involving moral turpitude;
	4700	+	[(10)] who is guilty of [boisterous or] disorderly
	4701	+	conduct while inside an enclosure;
	4702	+	(10) [(11)] who is an agent [or habitual associate] of
	4703	+	a person excludable under this section; or
	4704	+	(11) [(12)] who has been convicted of a felony.
	4705	+	SECTION 7.75. Sections 2026.052(a) and (b), Occupations
	4706	+	Code, are amended to read as follows:
	4707	+	(a) A person who is excluded or ejected from an enclosure
	4708	+	under a commission rule may apply to the department [commission]
	4709	+	for a hearing on the question of the applicability of the rule to
	4710	+	that person.
	4711	+	(b) A proceeding [An application for a hearing] under this
	4712	+	section is [Subsection (a) constitutes] a contested case for
	4713	+	purposes of [under] Chapter 2001, Government Code. If, after a
	4714	+	hearing as provided under Subchapter C of that chapter, the
	4715	+	commission determines that the exclusion or ejection was proper:
	4716	+	(1) the commission shall issue an order to that effect
	4717	+	[and enter the order in the commission's minutes]; and
	4718	+	(2) the person shall continue to be excluded from each
	4719	+	racetrack association's enclosure.
	4720	+	SECTION 7.76. Section 2026.102(a), Occupations Code, is
	4721	+	amended to read as follows:
	4722	+	(a) A class 1 racetrack is a racetrack on which live racing
	4723	+	is conducted for a number of days in a calendar year, as determined
	4724	+	by the department [commission] under Subchapter A, Chapter 2029.
	4725	+	SECTION 7.77. Section 2026.103, Occupations Code, is
	4726	+	amended to read as follows:
	4727	+	Sec. 2026.103. CLASS 2 RACETRACK. (a) A class 2 racetrack
	4728	+	is a racetrack on which live racing is conducted for a number of
	4729	+	days, as determined by the department [commission] under Subchapter
	4730	+	A, Chapter 2029.
	4731	+	(b) A class 2 racetrack is entitled to conduct 60 days of
	4732	+	live racing in a calendar year. A racetrack association may request
	4733	+	additional or fewer days of live racing. If, after receipt of a
	4734	+	request from a racetrack association, the department [commission]
	4735	+	determines additional or fewer days to be economically feasible and
	4736	+	in the best interest of this state and the racing industry, the
	4737	+	department [commission] shall grant the request.
	4738	+	(c) The department [commission] may permit a racetrack
	4739	+	association that holds a class 2 racetrack license and that is
	4740	+	located in a national historic district to conduct horse races for
	4741	+	more than 60 days in a calendar year.
	4742	+	SECTION 7.78. Section 2026.105(b), Occupations Code, is
	4743	+	amended to read as follows:
	4744	+	(b) A racetrack association that holds a class 4 racetrack
	4745	+	license may conduct live races for a number of days not to exceed
	4746	+	five days in a calendar year on dates selected by the racetrack
	4747	+	association and approved by the department [commission].
	4748	+	SECTION 7.79. Section 2026.106, Occupations Code, is
	4749	+	amended to read as follows:
	4750	+	Sec. 2026.106. WAIVER OR DEFERRAL OF CERTAIN STANDARDS FOR
	4751	+	CLASS 4 RACETRACK. (a) In considering an application for a class 4
	4752	+	racetrack license, except as provided by Subsection (b), the
	4753	+	executive director [commission] may waive or defer compliance with
	4754	+	the department's [commission's] standards regarding the physical
	4755	+	facilities or operations of a horse racetrack.
	4756	+	(b) The executive director [commission] may not waive or
	4757	+	defer compliance with standards that relate to the testing of
	4758	+	horses or license holders for the presence of a prohibited
	4759	+	substance, including a prohibited drug or chemical.
	4760	+	(c) If the executive director [commission] defers
	4761	+	compliance, the department [commission] shall, when granting the
	4762	+	application, establish a schedule under which the license holder
	4763	+	must comply with the standards.
	4764	+	SECTION 7.80. Section 2026.107(b), Occupations Code, is
	4765	+	amended to read as follows:
	4766	+	(b) The number of race dates allowed under this subchapter
	4767	+	relates only to live race dates. A racetrack may present simulcast
	4768	+	races on other dates as approved by the department [commission].
	4769	+	SECTION 7.81. Sections 2026.151 and 2026.152, Occupations
	4770	+	Code, are amended to read as follows:
	4771	+	Sec. 2026.151. DEPARTMENT [COMMISSION] APPROVAL REQUIRED.
	4772	+	(a) All concession, management, and totalisator contracts
	4773	+	submitted by an applicant under Section 2025.054 must have the
	4774	+	prior approval of the department [commission].
	4775	+	(b) The department [commission] shall refuse to approve a
	4776	+	concession or management contract if, in the sole discretion of the
	4777	+	department [commission], the background checks conducted under
	4778	+	Section 2025.056 reveal anything that might be detrimental to the
	4779	+	public interest or the racing industry.
	4780	+	Sec. 2026.152. DEPARTMENT [COMMISSION] REVIEW OF SECURITY
	4781	+	PLANS AND CERTAIN CONTRACTS. (a) On receipt of a plan for the
	4782	+	security of a racetrack, or a copy of a concession, management, or
	4783	+	totalisator contract for review under Section 2026.151, the
	4784	+	department [commission] shall review the security plan or contract
	4785	+	[in an executive session]. Documents submitted by an applicant to
	4786	+	the department [commission] under this section or Section 2025.052
	4787	+	or 2025.054 are subject to discovery in a suit brought under this
	4788	+	subtitle but are not public records and are not subject to Chapter
	4789	+	552, Government Code.
	4790	+	(b) In reviewing and approving contracts under Subsection
	4791	+	(a), the department [commission] shall attempt to ensure the
	4792	+	involvement of minority-owned businesses whenever possible.
	4793	+	SECTION 7.82. Section 2026.153(b), Occupations Code, is
	4794	+	amended to read as follows:
	4795	+	(b) The department [commission] may not approve a
	4796	+	management contract to operate or manage a racetrack owned by a
	4797	+	governmental entity unless the racetrack license holder is an owner
	4798	+	of the entity that proposes to manage the racetrack.
	4799	+	SECTION 7.83. Section 2027.001(b), Occupations Code, is
	4800	+	amended to read as follows:
	4801	+	(b) Rules adopted under this subtitle must include rules to:
	4802	+	(1) regulate wagering by a person licensed under this
	4803	+	subtitle;
	4804	+	(2) prohibit wagering by a department [commission]
	4805	+	employee;
	4806	+	(3) prohibit a racetrack association from accepting a
	4807	+	wager made by telephone; and
	4808	+	(4) prohibit a racetrack association from accepting a
	4809	+	wager made on credit.
	4810	+	SECTION 7.84. Sections 2027.003 and 2027.004, Occupations
	4811	+	Code, are amended to read as follows:
	4812	+	Sec. 2027.003. WAGERING COMPUTATION EQUIPMENT. (a)
	4813	+	Wagering authorized under this chapter may be calculated only by
	4814	+	state-of-the-art computational equipment approved by the
	4815	+	department [commission].
	4816	+	(b) The department [commission] may not require the use of a
	4817	+	particular make of equipment.
	4818	+	Sec. 2027.004. AUTOMATED TELLER MACHINES: RULES,
	4819	+	LIMITATIONS, AND FEES. (a) The commission shall:
	4820	+	(1) adopt rules providing for the use of automated
	4821	+	teller machines in an enclosure; and
	4822	+	(2) direct the department to limit the use of
	4823	+	automated teller machines by allowing a person access only to the
	4824	+	person's checking account at a bank or other financial institution.
	4825	+	(b) A racetrack association that allows an automated teller
	4826	+	machine in an enclosure as provided by Subsection (a) shall collect
	4827	+	a fee of $1 for each transaction authorized under that subsection
	4828	+	and forward the fee to the department [commission].
	4829	+	(c) The commission shall:
	4830	+	(1) adopt rules providing for collection, reporting,
	4831	+	and auditing of the transaction fee authorized under Subsection
	4832	+	(b); and
	4833	+	(2) direct the department to deposit the fee collected
	4834	+	under Subsection (b) to the credit of the general revenue fund.
	4835	+	SECTION 7.85. Section 2027.006(d), Occupations Code, is
	4836	+	amended to read as follows:
	4837	+	(d) If the racetrack association refuses to pay a claimant
	4838	+	who has established satisfactorily a right to distribution from a
	4839	+	pari-mutuel pool, the claimant may appeal to the department
	4840	+	[commission] under procedures prescribed by commission rule.
	4841	+	SECTION 7.86. Section 2027.052(a), Occupations Code, is
	4842	+	amended to read as follows:
	4843	+	(a) This subtitle may not be construed to allow wagering in
	4844	+	this state on simulcast races at any location other than a racetrack
	4845	+	licensed under this subtitle that has been granted live race dates
	4846	+	by the department [commission].
	4847	+	SECTION 7.87. The heading to Section 2027.053, Occupations
	4848	+	Code, is amended to read as follows:
	4849	+	Sec. 2027.053. DEPARTMENT [COMMISSION] APPROVAL REQUIRED
	4850	+	FOR PARI-MUTUEL POOL INCLUSION.
	4851	+	SECTION 7.88. Section 2027.053(a), Occupations Code, is
	4852	+	amended to read as follows:
	4853	+	(a) With department [commission] approval:
	4854	+	(1) wagers accepted on a simulcast race by any
	4855	+	out-of-state receiving location may be included in the pari-mutuel
	4856	+	pool for the race at the sending in-state racetrack association;
	4857	+	and
	4858	+	(2) wagers accepted by an in-state racetrack
	4859	+	association on a race simulcast from out-of-state may be included
	4860	+	in the pari-mutuel pools for the race at the out-of-state sending
	4861	+	track.
	4862	+	SECTION 7.89. Section 2027.054(c), Occupations Code, is
	4863	+	amended to read as follows:
	4864	+	(c) The department [commission] may not approve wagering on
	4865	+	an interstate simulcast race unless the receiving location consents
	4866	+	to wagering on interstate simulcast races at all other receiving
	4867	+	locations in this state.
	4868	+	SECTION 7.90. The heading to Subchapter A, Chapter 2028,
	4869	+	Occupations Code, is amended to read as follows:
	4870	+	SUBCHAPTER A. [COMMISSION] OVERSIGHT OF PARI-MUTUEL RACING FUNDS
	4871	+	SECTION 7.91. Section 2028.001(a), Occupations Code, is
	4872	+	amended to read as follows:
	4873	+	(a) For any organization that receives funds generated by
	4874	+	live or simulcast pari-mutuel racing, the commission shall adopt
	4875	+	rules specifying the reporting, monitoring, and auditing
	4876	+	requirements or other appropriate performance measures for:
	4877	+	(1) any funds distributed to or used by the
	4878	+	organization; and
	4879	+	(2) any function or service provided by the
	4880	+	expenditure of the funds described by Subdivision (1).
	4881	+	SECTION 7.92. Sections 2028.002 and 2028.003, Occupations
	4882	+	Code, are amended to read as follows:
	4883	+	Sec. 2028.002. INDEPENDENT AUDIT REPORT; RECORDS REVIEW.
	4884	+	(a) An organization that receives funds generated by live or
	4885	+	simulcast pari-mutuel racing shall annually file with the
	4886	+	department [commission] a copy of an audit report prepared by an
	4887	+	independent certified public accountant. The audit must include a
	4888	+	verification of any performance report sent to or required by the
	4889	+	department [commission].
	4890	+	(b) The department [commission] may review any record or
	4891	+	book of an organization that submits an independent audit to the
	4892	+	department [commission] as the department [commission] determines
	4893	+	necessary to confirm or further investigate the findings of an
	4894	+	audit or report.
	4895	+	Sec. 2028.003. SUSPENSION AND WITHHOLDING OF FUNDS. The
	4896	+	commission [by rule] may adopt rules authorizing the department to
	4897	+	suspend or withhold funds from an organization:
	4898	+	(1) that the department [commission] determines has
	4899	+	failed to comply with the requirements or performance measures
	4900	+	adopted under Section 2028.001; or
	4901	+	(2) for which material questions on the use of funds by
	4902	+	the organization are raised following an independent audit or other
	4903	+	report to the department [commission].
	4904	+	SECTION 7.93. Section 2028.102(e), Occupations Code, is
	4905	+	amended to read as follows:
	4906	+	(e) A horse racetrack association may pay a portion of the
	4907	+	revenue set aside under this section to an organization recognized
	4908	+	under Section 2023.051, as provided by a contract approved by the
	4909	+	department [commission].
	4910	+	SECTION 7.94. Sections 2028.103(a) and (a-1), Occupations
	4911	+	Code, are amended to read as follows:
	4912	+	(a) A horse racetrack association shall set aside for the
	4913	+	Texas-bred program and pay to the department [commission] an amount
	4914	+	equal to one percent of a live multiple two wagering pool and a live
	4915	+	multiple three wagering pool. From the set-aside amounts:
	4916	+	(1) two percent shall be set aside for purposes of
	4917	+	Subchapter F, Chapter 88, Education Code; and
	4918	+	(2) the remaining amount shall be allocated as
	4919	+	follows:
	4920	+	(A) 10 percent may be used by the appropriate
	4921	+	state horse breed registry for administration; and
	4922	+	(B) the remainder shall be used for awards.
	4923	+	(a-1) The department [commission] shall deposit money paid
	4924	+	to the department [commission] under Subsection (a) into the
	4925	+	Texas-bred incentive fund established under Section 2028.301. The
	4926	+	department [commission] shall distribute the money collected under
	4927	+	this section and deposited into the fund to the appropriate state
	4928	+	horse breed registries for the Texas-bred program in accordance
	4929	+	with rules adopted under Subsection (c).
	4930	+	SECTION 7.95. Sections 2028.105(b), (d), and (d-1),
	4931	+	Occupations Code, are amended to read as follows:
	4932	+	(b) A horse racetrack association shall pay to the
	4933	+	department [commission] for use by the appropriate state horse
	4934	+	breed registry, subject to commission rules, 10 percent of the
	4935	+	total breakage from a live pari-mutuel pool or a simulcast
	4936	+	pari-mutuel pool. The appropriate state horse breed registries are
	4937	+	as follows:
	4938	+	(1) the Texas Thoroughbred [Breeders] Association for
	4939	+	Thoroughbred horses;
	4940	+	(2) the Texas Quarter Horse Association for quarter
	4941	+	horses;
	4942	+	(3) the Texas Appaloosa Horse Club for Appaloosa
	4943	+	horses;
	4944	+	(4) the Texas Arabian Breeders Association for Arabian
	4945	+	horses; and
	4946	+	(5) the Texas Paint Horse Breeders Association for
	4947	+	paint horses.
	4948	+	(d) The horse racetrack association shall pay to the
	4949	+	department [commission] for deposit into the Texas-bred incentive
	4950	+	fund established under Section 2028.301 and distribution to the
	4951	+	appropriate state horse breed registry the remaining 80 percent of
	4952	+	the total breakage to be allocated as follows:
	4953	+	(1) 40 percent to the owners of the accredited
	4954	+	Texas-bred horses that finish first, second, or third;
	4955	+	(2) 40 percent to the breeders of accredited
	4956	+	Texas-bred horses that finish first, second, or third; and
	4957	+	(3) 20 percent to the owner of the stallion standing in
	4958	+	this state at the time of conception whose Texas-bred get finish
	4959	+	first, second, or third.
	4960	+	(d-1) The department [commission] shall deposit the
	4961	+	portions of total breakage paid to the department [commission]
	4962	+	under Subsections (b) and (d) into the Texas-bred incentive fund
	4963	+	established under Section 2028.301. The department [commission]
	4964	+	shall distribute the money collected under this section and
	4965	+	deposited into the fund to the appropriate state horse breed
	4966	+	registries in accordance with this section and with rules adopted
	4967	+	by the commission under Section 2028.103.
	4968	+	SECTION 7.96. Section 2028.154(a), Occupations Code, is
	4969	+	amended to read as follows:
	4970	+	(a) A greyhound racetrack association shall pay 50 percent
	4971	+	of the breakage to the appropriate state greyhound breed
	4972	+	registry. Of that breakage percentage:
	4973	+	(1) 25 percent is to be used in stakes races; and
	4974	+	(2) 25 percent of that total breakage from a live
	4975	+	pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
	4976	+	the department [commission] for deposit into the Texas-bred
	4977	+	incentive fund established under Section 2028.301. The department
	4978	+	[commission] shall distribute the money collected under this
	4979	+	section and deposited into the fund to the state greyhound breed
	4980	+	registry for use in accordance with this section and commission
	4981	+	rules.
	4982	+	SECTION 7.97. Section 2028.201, Occupations Code, is
	4983	+	amended to read as follows:
	4984	+	Sec. 2028.201. RULES. (a) The commission shall adopt
	4985	+	rules relating to this subchapter and the oversight of the amounts
	4986	+	allocated under Sections 2028.202(b)(1), (2), and (3)
	4987	+	[2028.202(b)] and (c).
	4988	+	(b) The commission shall adopt rules relating to the
	4989	+	oversight of the amounts allocated under Section 2028.202(b)(4).
	4990	+	SECTION 7.98. Sections 2028.202(a), (a-1), and (b),
	4991	+	Occupations Code, are amended to read as follows:
	4992	+	(a) A racetrack association shall distribute from the total
	4993	+	amount deducted as provided by Sections 2028.101 and 2028.152 from
	4994	+	each simulcast pari-mutuel pool and each simulcast cross-species
	4995	+	pari-mutuel pool the following shares:
	4996	+	(1) an amount equal to one percent of each simulcast
	4997	+	pari-mutuel pool to the department [commission] for the
	4998	+	administration of this subtitle;
	4999	+	(2) an amount equal to 1.25 percent of each simulcast
	5000	+	cross-species pari-mutuel pool to the department [commission] for
	5001	+	the administration of this subtitle;
	5002	+	(3) for a horse racetrack association, an amount equal
	5003	+	to one percent of a multiple two wagering pool or multiple three
	5004	+	wagering pool as the amount set aside for the Texas-bred program to
	5005	+	be used as provided by Section 2028.103;
	5006	+	(4) for a greyhound racetrack association, an amount
	5007	+	equal to one percent of a multiple two wagering pool or a multiple
	5008	+	three wagering pool as the amount set aside for the Texas-bred
	5009	+	program for greyhound races, to be distributed and used in
	5010	+	accordance with commission rules adopted to promote greyhound
	5011	+	breeding in this state; and
	5012	+	(5) the remainder as the amount set aside for purses,
	5013	+	expenses, the sending track, and the receiving location under a
	5014	+	contract approved by the department [commission] between the
	5015	+	sending track and the receiving location.
	5016	+	(a-1) A racetrack association shall pay to the department
	5017	+	[commission] for deposit into the Texas-bred incentive fund
	5018	+	established under Section 2028.301 the shares to be distributed
	5019	+	under Subsections (a)(3) and (a)(4) for the Texas-bred program.
	5020	+	The department [commission] shall distribute the money collected
	5021	+	under this section and deposited into the fund to the appropriate
	5022	+	state breed registries for use under the Texas-bred program.
	5023	+	(b) From the total amount deducted under Subsection (a), a
	5024	+	greyhound racetrack association that receives an interstate
	5025	+	cross-species simulcast signal shall distribute the following
	5026	+	amounts from each pari-mutuel pool wagered on the signal at the
	5027	+	racetrack:
	5028	+	(1) a fee of 1.5 percent to be paid to the racetrack in
	5029	+	this state sending the signal;
	5030	+	(2) a purse in the amount of 0.75 percent to be paid to
	5031	+	the official state horse breed registry for Thoroughbred horses for
	5032	+	use as purses at racetracks in this state;
	5033	+	(3) a purse in the amount of 0.75 percent to be paid to
	5034	+	the official state horse breed registry for quarter horses for use
	5035	+	as purses at racetracks in this state; and
	5036	+	(4) a purse of 4.5 percent to be deposited in the horse
	5037	+	industry escrow account as [escrowed with the commission in the
	5038	+	manner] provided by Section 2028.204.
	5039	+	SECTION 7.99. Sections 2028.203 and 2028.204, Occupations
	5040	+	Code, are amended to read as follows:
	5041	+	Sec. 2028.203. REIMBURSEMENT FOR SIMULCAST SIGNAL COST. If
	5042	+	a racetrack association purchases an interstate simulcast signal
	5043	+	and the signal cost exceeds five percent of the pari-mutuel pool,
	5044	+	the department [commission], from the horse industry escrow
	5045	+	[escrowed] account established under Section 2028.204
	5046	+	[2028.202(b)(4)], shall reimburse the racetrack association an
	5047	+	amount equal to one-half of the signal cost that exceeds five
	5048	+	percent of the pari-mutuel pool.
	5049	+	Sec. 2028.204. HORSE INDUSTRY ESCROW ACCOUNT; DEPOSIT AND
	5050	+	ALLOCATION OF MONEY [IN ESCROW ACCOUNTS]. (a) The horse industry
	5051	+	escrow account is a trust account in the department's registry
	5052	+	composed of money deposited to the account in accordance with this
	5053	+	subtitle.
	5054	+	(b) A greyhound racetrack association shall deposit into
	5055	+	the horse industry [an] escrow account [in the commission's
	5056	+	registry] the purse set aside under Section 2028.202(b)(4).
	5057	+	(c) [(b)] Any horse racetrack association in this state may
	5058	+	apply to the department [commission] for receipt of money in the
	5059	+	horse industry escrow account for use as purses. Any state horse
	5060	+	breed registry listed in Section 2030.002(a) may apply for receipt
	5061	+	of money in the account for any event that furthers the horse
	5062	+	industry. The department [commission]:
	5063	+	(1) shall determine the horse racetrack associations
	5064	+	and state horse breed registries to be allocated money from the
	5065	+	account and the percentages to be allocated, taking into
	5066	+	consideration purse levels, racing opportunities, and the
	5067	+	financial status of the requesting racetrack association or
	5068	+	requesting breed registry; and
	5069	+	(2) may not annually allocate more than 70 percent of
	5070	+	the amount deposited into the account to horse racetrack
	5071	+	associations for use as purses.
	5072	+	SECTION 7.100. Section 2028.2041, Occupations Code, is
	5073	+	amended to read as follows:
	5074	+	Sec. 2028.2041. ALLOCATION OF CERTAIN FUNDS IN HORSE
	5075	+	INDUSTRY ESCROW ACCOUNT TO GENERAL REVENUE FUND; MAXIMUM ACCOUNT
	5076	+	BALANCE. (a) In each state fiscal biennium, the comptroller shall
	5077	+	deposit the amounts allocated under Section 151.801(c-3), Tax Code,
	5078	+	into the horse industry escrow account established under Section
	5079	+	2028.204 [2028.204(b)], until the comptroller determines the
	5080	+	amount deposited into the account in that fiscal biennium equals
	5081	+	the greater of:
	5082	+	(1) the amount appropriated to the department
	5083	+	[commission] for the purposes of Section 2028.204 for that fiscal
	5084	+	biennium; or
	5085	+	(2) $50 million.
	5086	+	(b) Once the comptroller determines the greater of the
	5087	+	amount described by Subsection (a)(1) or (2) has been deposited
	5088	+	during a state fiscal biennium into the horse industry escrow
	5089	+	account established under Section 2028.204 [2028.204(b)], for the
	5090	+	remainder of that fiscal biennium the comptroller shall deposit the
	5091	+	amounts allocated under Section 151.801(c-3), Tax Code, into the
	5092	+	general revenue fund.
	5093	+	(c) The balance of the horse industry escrow account
	5094	+	established under Section 2028.204 [2028.204(b)] shall not exceed
	5095	+	$50 million.
	5096	+	SECTION 7.101. Section 2028.205, Occupations Code, is
	5097	+	amended to read as follows:
	5098	+	Sec. 2028.205. ADDITIONAL ALLOCATIONS FROM HORSE INDUSTRY
	5099	+	ESCROW ACCOUNT FOR CERTAIN RACETRACKS. (a) In addition to money
	5100	+	allocated under Section 2028.204, a horse racetrack association
	5101	+	operating a racetrack that is located not more than 75 miles from a
	5102	+	greyhound racetrack that offers wagering on a cross-species
	5103	+	simulcast signal and that sends the cross-species simulcast signal
	5104	+	to the greyhound racetrack may apply to the department [commission]
	5105	+	for an allocation of up to 20 percent of the money in the horse
	5106	+	industry escrow [escrowed] account established under Section
	5107	+	2028.204 that is attributable to the wagering on a cross-species
	5108	+	simulcast signal at the greyhound racetrack.
	5109	+	(b) If the applying horse racetrack association can prove to
	5110	+	the department's [commission's] satisfaction that the racetrack
	5111	+	association's handle has decreased directly due to wagering on an
	5112	+	interstate cross-species simulcast signal at a greyhound racetrack
	5113	+	located not more than 75 miles from the applying racetrack
	5114	+	association, the department [commission] shall allocate amounts
	5115	+	from the horse industry escrow [escrowed] account as the department
	5116	+	[commission] considers appropriate to compensate the racetrack
	5117	+	association for the decrease. The amounts allocated may not exceed
	5118	+	20 percent of the money in the [escrowed] account that is
	5119	+	attributable to the wagering on the interstate cross-species
	5120	+	simulcast signal at the greyhound racetrack.
	5121	+	(c) Money allocated by the department [commission] under
	5122	+	this section may be used by the racetrack association for any
	5123	+	purpose.
	5124	+	SECTION 7.102. Section 2028.301, Occupations Code, is
	5125	+	amended to read as follows:
	5126	+	Sec. 2028.301. TEXAS-BRED INCENTIVE FUND. (a) The
	5127	+	department [commission] shall deposit money set aside for the
	5128	+	Texas-bred program or set aside for use by state breed registries
	5129	+	under this chapter into an escrow account in the state treasury in
	5130	+	the registry of the department [commission] to be known as the
	5131	+	Texas-bred incentive fund.
	5132	+	(b) The department [commission] shall distribute money from
	5133	+	the Texas-bred incentive fund in accordance with this chapter and
	5134	+	commission rules.
	5135	+	SECTION 7.103. Chapter 2028, Occupations Code, is amended
	5136	+	by adding Subchapter H to read as follows:
	5137	+	SUBCHAPTER H. NATIONAL EVENT INCENTIVES
	5138	+	Sec. 2028.401. NATIONAL EVENT INCENTIVES. (a) In this
	5139	+	section:
	5140	+	(1) "Breeders' Cup costs" means all costs for capital
	5141	+	improvements and extraordinary expenses reasonably incurred for
	5142	+	the operation of the Breeders' Cup races, including purses offered
	5143	+	on other days in excess of the purses that the host association is
	5144	+	required to pay by this subtitle.
	5145	+	(2) "Breeders' Cup races" means a series of
	5146	+	thoroughbred races known as the Breeders' Cup Championship races
	5147	+	conducted annually by Breeders' Cup Limited on a day known as
	5148	+	Breeders' Cup Championship day.
	5149	+	(3) "Development organization" means an organization
	5150	+	whose primary purpose is the marketing, promotion, or economic
	5151	+	development of a city, county, or region of the state, including
	5152	+	chambers of commerce, convention and visitors bureaus, and sports
	5153	+	commissions.
	5154	+	(4) "Political subdivision" means a city, county, or
	5155	+	other political subdivision of the state and includes any entity
	5156	+	created by a political subdivision.
	5157	+	(b) An association conducting the Breeders' Cup races may
	5158	+	apply to the reimbursement of Breeders' Cup costs amounts that
	5159	+	would otherwise be set aside by the association for the state under
	5160	+	Sections 2028.051 and 2028.202(a)(1) during the year in which the
	5161	+	association hosts the Breeders' Cup races, limited to an amount
	5162	+	equal to the lesser of the aggregate amount contributed to pay
	5163	+	Breeders' Cup costs by political subdivisions and development
	5164	+	organizations or $2 million. Beginning on January 1 of the year for
	5165	+	which the association has been officially designated to host the
	5166	+	Breeders' Cup races, amounts that would otherwise be set aside by
	5167	+	the association for the state during that year under Sections
	5168	+	2028.051 and 2028.202(a)(1) shall be set aside, in accordance with
	5169	+	procedures prescribed by the comptroller, for deposit into the
	5170	+	Breeders' Cup Developmental Account. The Breeders' Cup
	5171	+	Developmental Account is an account in the general revenue fund.
	5172	+	The department shall administer the account. Money in the account
	5173	+	may be appropriated only to the department and may be used only for
	5174	+	the purposes specified in this section. The account is exempt from
	5175	+	the application of Section 403.095, Government Code.
	5176	+	(c) The department shall make disbursements from the
	5177	+	Breeders' Cup Developmental Account to reimburse Breeders' Cup
	5178	+	costs actually incurred and paid by the association, after the
	5179	+	association files a request for reimbursement. Disbursements from
	5180	+	the account may not at any time exceed the aggregate amount actually
	5181	+	paid for Breeders' Cup costs by political subdivisions and
	5182	+	development organizations, as certified by the department to the
	5183	+	comptroller, or $2 million, whichever is less.
	5184	+	(d) Not later than January 31 of the year following the year
	5185	+	in which the association hosts the Breeders' Cup races, the
	5186	+	association shall submit to the department a report that shows:
	5187	+	(1) the total amount of Breeders' Cup costs incurred
	5188	+	and paid by the association;
	5189	+	(2) the total payments made by political subdivisions
	5190	+	and development organizations for Breeders' Cup costs; and
	5191	+	(3) any other information requested by the commission.
	5192	+	(e) Following receipt of the report required by Subsection
	5193	+	(d), the department shall take any steps it considers appropriate
	5194	+	to verify the report. Not later than March 31 of the year following
	5195	+	the event, the department shall transfer to the credit of the
	5196	+	general revenue fund any balance remaining in the Breeders' Cup
	5197	+	Developmental Account after reimbursement of any remaining
	5198	+	Breeders' Cup costs authorized under this section.
	5199	+	(f) In addition to the authority otherwise granted in this
	5200	+	subtitle, the commission and the comptroller may adopt rules for
	5201	+	the administration of this section as follows:
	5202	+	(1) the commission may adopt rules relating to:
	5203	+	(A) auditing or other verification of Breeders'
	5204	+	Cup costs and amounts paid or set aside by political subdivisions
	5205	+	and development organizations; and
	5206	+	(B) the disbursement of funds from the Breeders'
	5207	+	Cup Developmental Account; and
	5208	+	(2) the comptroller may adopt rules relating to:
	5209	+	(A) procedures and requirements for transmitting
	5210	+	or otherwise delivering to the treasury the money set aside under
	5211	+	this section; and
	5212	+	(B) depositing funds into the Breeders' Cup
	5213	+	Developmental Account.
	5214	+	(g) The commission may adopt rules to facilitate the conduct
	5215	+	of the Breeders' Cup races, including the adoption of rules or
	5216	+	waiver of existing rules relating to the overall conduct of racing
	5217	+	during the Breeders' Cup races in order to assure the integrity of
	5218	+	the races, licensing for all participants, special stabling and
	5219	+	training requirements for foreign horses, and commingling of
	5220	+	pari-mutuel pools.
	5221	+	(h) To the extent of any conflict between this section and
	5222	+	another provision of this subtitle, this section prevails.
	5223	+	SECTION 7.104. Section 2029.001, Occupations Code, is
	5224	+	amended to read as follows:
	5225	+	Sec. 2029.001. ALLOCATION OF HORSE RACING DAYS; PROHIBITED
	5226	+	RACING DAYS. (a) The department [commission] shall allocate the
	5227	+	live and simulcast horse racing days for the conduct of live and
	5228	+	simulcast racing at each racetrack.
	5229	+	(b) In allocating race dates under this section, the
	5230	+	department [commission] shall consider live race dates separately
	5231	+	from simulcast race dates.
	5232	+	(c) The commission by rule may prohibit racing on Sunday
	5233	+	unless the prohibition would conflict with another provision of
	5234	+	this subtitle. The commission may delegate to the executive
	5235	+	director the commission's authority under this subsection.
	5236	+	SECTION 7.105. Sections 2029.002(a) and (c), Occupations
	5237	+	Code, are amended to read as follows:
	5238	+	(a) The department [commission] shall grant to each
	5239	+	racetrack association additional horse racing days during a horse
	5240	+	race meeting to be conducted as charity days. The department
	5241	+	[commission] shall grant to each class 1 racetrack and to each class
	5242	+	2 racetrack at least two and not more than five additional days.
	5243	+	(c) The department [commission] shall ensure that races
	5244	+	conducted by a racetrack association on a charity day are
	5245	+	comparable in all respects, including the generation of revenue, to
	5246	+	races conducted by that racetrack association on any other horse
	5247	+	racing day.
	5248	+	SECTION 7.106. Section 2029.003, Occupations Code, is
	5249	+	amended to read as follows:
	5250	+	Sec. 2029.003. ACCESS TO RACES. (a) Each racetrack shall
	5251	+	provide reasonable access to races for all breeds of horses as
	5252	+	determined by the racetrack association through negotiations with
	5253	+	the representative state horse breed registry with the final
	5254	+	approval of the department [commission].
	5255	+	(b) In granting approval under Subsection (a), the
	5256	+	department [commission] shall consider:
	5257	+	(1) the availability of competitive horses;
	5258	+	(2) economic feasibility; and
	5259	+	(3) public interest.
	5260	+	SECTION 7.107. Sections 2029.052(a) and (b), Occupations
	5261	+	Code, are amended to read as follows:
	5262	+	(a) The department [commission] shall grant not less than
	5263	+	five additional greyhound racing days during a greyhound race
	5264	+	meeting to be conducted as charity days.
	5265	+	(b) The department [commission] shall ensure that races
	5266	+	conducted by a racetrack association on a charity day are
	5267	+	comparable in all respects, including the generation of revenue, to
	5268	+	races conducted by that racetrack association on any other
	5269	+	greyhound racing day.
	5270	+	SECTION 7.108. Section 2029.053, Occupations Code, is
	5271	+	amended to read as follows:
	5272	+	Sec. 2029.053. SUBSTITUTE RACING DAYS OR ADDITIONAL RACES.
	5273	+	If, for a reason beyond a greyhound racetrack association's control
	5274	+	and not caused by the racetrack association's fault or neglect, it
	5275	+	is impossible for the racetrack association to conduct a race on a
	5276	+	day authorized by the department [commission], the executive
	5277	+	director [commission] in the executive director's [its] discretion
	5278	+	and at the request of the racetrack association, as a substitute for
	5279	+	the race, may:
	5280	+	(1) specify another day for the racetrack association
	5281	+	to conduct racing; or
	5282	+	(2) add additional races to already programmed events.
	5283	+	SECTION 7.109. Section 2030.001(b), Occupations Code, is
	5284	+	amended to read as follows:
	5285	+	(b) Rules adopted under this section are subject to approval
	5286	+	by the department [commission].
	5287	+	SECTION 7.110. Section 2030.002(b), Occupations Code, is
	5288	+	amended to read as follows:
	5289	+	(b) The appropriate state horse breed registry shall act in
	5290	+	an advisory capacity to each racetrack association and to the
	5291	+	department [commission] for the purpose of administering Sections
	5292	+	2030.003 and 2030.004.
	5293	+	SECTION 7.111. Sections 2030.005 and 2030.006, Occupations
	5294	+	Code, are amended to read as follows:
	5295	+	Sec. 2030.005. EQUITABLE NUMBER OF RACES FOR EACH BREED.
	5296	+	(a) A racetrack association that conducts a horse race meeting for
	5297	+	more than one breed of horse at one racetrack shall provide that the
	5298	+	number of races run by each breed on each day is equitable as
	5299	+	determined by the department [commission] under Section 2029.003.
	5300	+	(b) The commission by rule [or by order] may allow for an
	5301	+	exception to Subsection (a) if an insufficient number of horses of a
	5302	+	breed are available to provide sufficient competition. The
	5303	+	commission may delegate to the executive director the commission's
	5304	+	authority under this subsection.
	5305	+	Sec. 2030.006. EQUITABLE STABLING. A racetrack association
	5306	+	that conducts a horse race meeting for more than one breed of horse
	5307	+	at one racetrack shall provide on-track stalls on an equitable
	5308	+	basis as determined by the department [commission] under Section
	5309	+	2029.003.
	5310	+	SECTION 7.112. Section 2030.051(b), Occupations Code, is
	5311	+	amended to read as follows:
	5312	+	(b) Rules adopted under this section are subject to approval
	5313	+	by the department [commission].
	5314	+	SECTION 7.113. Section 2031.001, Occupations Code, is
	5315	+	amended to read as follows:
	5316	+	Sec. 2031.001. ESTABLISHMENT OF TEXAS DERBIES. (a) The
	5317	+	commission by rule shall establish as Texas Derbies the following
	5318	+	annual stakes races:
	5319	+	(1) one race open to three-year-old Thoroughbreds;
	5320	+	(2) one race open only to three-year-old Texas-bred
	5321	+	Thoroughbreds;
	5322	+	(3) one race open to three-year-old quarter horses;
	5323	+	and
	5324	+	(4) one race open only to three-year-old Texas-bred
	5325	+	quarter horses.
	5326	+	(b) Each Texas Derby must be held annually on a date and at
	5327	+	the class 1 racetrack determined by the department [commission].
	5328	+	The department [commission] shall determine the location of each
	5329	+	Texas Derby in consultation with:
	5330	+	(1) each class 1 racetrack;
	5331	+	(2) the official state horse breed registries; and
	5332	+	(3) the official horsemen's organization.
	5333	+	(c) The department [commission] may sell the right to name a
	5334	+	Texas Derby. The department [commission] shall deposit the
	5335	+	proceeds from the sale of the right to name a Texas Derby into the
	5336	+	Texas Derby escrow purse fund established under Section 2031.004.
	5337	+	SECTION 7.114. Section 2031.003(a), Occupations Code, is
	5338	+	amended to read as follows:
	5339	+	(a) For each Texas Derby, the department [commission] shall
	5340	+	appoint a state veterinarian to conduct a prerace examination of
	5341	+	each horse entered in the race to determine whether the horse:
	5342	+	(1) is healthy; and
	5343	+	(2) meets standards set by commission rule for racing.
	5344	+	SECTION 7.115. Sections 2031.004(a) and (e), Occupations
	5345	+	Code, are amended to read as follows:
	5346	+	(a) The department [commission] shall establish a Texas
	5347	+	Derby escrow purse fund.
	5348	+	(e) The department [commission] may not:
	5349	+	(1) use funds from the accredited Texas-bred program
	5350	+	under Subchapter A, Chapter 2030, or the horse industry escrow
	5351	+	[escrowed purse] account established under Section 2028.204 to fund
	5352	+	the Texas Derby escrow purse fund; or
	5353	+	(2) order a state horse breed registry to fund a purse
	5354	+	for a Texas Derby, make contributions to the Texas Derby escrow
	5355	+	purse fund, or pay the expenses of a Texas Derby race.
	5356	+	SECTION 7.116. Chapter 2032, Occupations Code, is amended
	5357	+	by adding Section 2032.004 to read as follows:
	5358	+	Sec. 2032.004. RULES. The commission may adopt rules as
	5359	+	necessary to:
	5360	+	(1) administer this chapter; and
	5361	+	(2) ensure public safety and welfare.
	5362	+	SECTION 7.117. Section 2033.006(a), Occupations Code, is
	5363	+	amended to read as follows:
	5364	+	(a) A person commits an offense if the person knowingly
	5365	+	possesses or displays a credential issued by the department or a
	5366	+	false credential that identifies the person as the holder of the
	5367	+	credential and the person knows that:
	5368	+	(1) the credential is not issued to the person; or
	5369	+	(2) the person is not a license holder.
	5370	+	SECTION 7.118. Sections 2033.007(a) and (b), Occupations
	5371	+	Code, are amended to read as follows:
	5372	+	(a) For purposes of this section, a request is lawful if it
	5373	+	is made:
	5374	+	(1) at any time by:
	5375	+	(A) the department [commission];
	5376	+	(B) an authorized department [commission] agent;
	5377	+	(C) the director or a commissioned officer of the
	5378	+	Department of Public Safety;
	5379	+	(D) a peace officer; or
	5380	+	(E) a steward or judge; and
	5381	+	(2) at any restricted location that is at a racetrack
	5382	+	and is not a public place.
	5383	+	(b) A person commits an offense if, after a lawful request,
	5384	+	the person knowingly fails or refuses to:
	5385	+	(1) display a credential issued by the department to
	5386	+	another person; or
	5387	+	(2) give the person's name, residence address, or date
	5388	+	of birth to another person.
	5389	+	SECTION 7.119. Section 2033.008(a), Occupations Code, is
	5390	+	amended to read as follows:
	5391	+	(a) A person commits an offense if the person knowingly
	5392	+	wagers on the result of a horse or greyhound race conducted in this
	5393	+	state that:
	5394	+	(1) is held on an American Indian reservation or on
	5395	+	American Indian trust land located in this state; and
	5396	+	(2) is not held under the supervision of the
	5397	+	department [commission] under rules adopted under this subtitle.
	5398	+	SECTION 7.120. Section 2033.009(a), Occupations Code, is
	5399	+	amended to read as follows:
	5400	+	(a) A person commits an offense if the person is a license
	5401	+	holder and the person knowingly permits, facilitates, or allows
	5402	+	access to an enclosure where races are conducted to another person
	5403	+	who the person knows:
	5404	+	(1) has engaged in bookmaking, touting, or illegal
	5405	+	wagering;
	5406	+	(2) derives income from illegal activities or
	5407	+	enterprises;
	5408	+	(3) has been convicted of a violation of this
	5409	+	subtitle; or
	5410	+	(4) is excluded by the department [commission] from
	5411	+	entering a racetrack.
	5412	+	SECTION 7.121. Section 2033.012(c), Occupations Code, is
	5413	+	amended to read as follows:
	5414	+	(c) An offense under this section is a state jail felony
	5415	+	unless the statement was material in a department [commission]
	5416	+	action relating to a racetrack license, in which event the offense
	5417	+	is a felony of the third degree.
	5418	+	SECTION 7.122. Section 2033.013(c), Occupations Code, is
	5419	+	amended to read as follows:
	5420	+	(c) An offense under this section is a state jail felony if:
	5421	+	(1) the actor:
	5422	+	(A) is a license holder under this subtitle or a
	5423	+	commission member or department employee; and
	5424	+	(B) knowingly represents that a commission
	5425	+	member or department employee or a person licensed by the
	5426	+	department [commission] is the source of the false information; or
	5427	+	(2) the false statement or information was contained
	5428	+	in racing selection information provided to the public.
	5429	+	SECTION 7.123. Sections 2033.018(a) and (b), Occupations
	5430	+	Code, are amended to read as follows:
	5431	+	(a) A person consents to a search for a prohibited device,
	5432	+	prohibited substance, or other contraband at a time and location
	5433	+	described by Subsection (b) if the person:
	5434	+	(1) accepts a license or other credential issued by
	5435	+	the department under this subtitle; or
	5436	+	(2) enters a racetrack under the authority of a
	5437	+	license or other credential alleged to have been issued by the
	5438	+	department under this subtitle.
	5439	+	(b) A search may be conducted by a commissioned officer of
	5440	+	the Department of Public Safety or a peace officer, including a
	5441	+	peace officer employed by the department [commission], at any time
	5442	+	and at any location at a racetrack, except a location:
	5443	+	(1) excluded by commission rule from searches under
	5444	+	this section; or
	5445	+	(2) provided by a racetrack association under
	5446	+	commission rule for private storage of personal items belonging to
	5447	+	a license holder entering a racetrack.
	5448	+	SECTION 7.124. Sections 2033.021, 2033.051, and 2033.052,
	5449	+	Occupations Code, are amended to read as follows:
	5450	+	Sec. 2033.021. DEPARTMENT [COMMISSION] AUTHORITY. This
	5451	+	subchapter does not restrict the department's [commission's]
	5452	+	administrative authority to enforce this subtitle or commission
	5453	+	rules to the fullest extent authorized by this subtitle.
	5454	+	Sec. 2033.051. IMPOSITION OF PENALTY. If the commission or
	5455	+	the executive director determines that a person regulated under
	5456	+	this subtitle has violated this subtitle or a rule or order adopted
	5457	+	under this subtitle in a manner that constitutes a ground for a
	5458	+	disciplinary action under this subtitle, the commission or the
	5459	+	executive director may assess an administrative penalty against
	5460	+	that person as provided by this subchapter or Subchapter F, Chapter
	5461	+	51.
	5462	+	Sec. 2033.052. AMOUNT OF PENALTY. (a) Notwithstanding
	5463	+	Subchapter F, Chapter 51, the [The] commission or the executive
	5464	+	director may assess an administrative penalty under this subchapter
	5465	+	in an amount not to exceed $10,000 for each violation.
	5466	+	(b) In determining the amount of the penalty, the commission
	5467	+	or the executive director shall consider the criteria listed in
	5468	+	Section 51.302(b) [seriousness of the violation].
	5469	+	SECTION 7.125. Section 2033.057(a), Occupations Code, is
	5470	+	amended to read as follows:
	5471	+	(a) A complaint alleging a violation of this subtitle may be
	5472	+	instituted by the Department of Public Safety, the department
	5473	+	[commission], or the attorney general.
	5474	+	SECTION 7.126. Subchapter B, Chapter 2033, Occupations
	5475	+	Code, is amended by adding Section 2033.058 to read as follows:
	5476	+	Sec. 2033.058. DISPOSITION OF ADMINISTRATIVE PENALTY. The
	5477	+	commission shall remit an administrative penalty collected under
	5478	+	this subtitle to the comptroller for deposit in the general revenue
	5479	+	fund.
	5480	+	SECTION 7.127. Section 2033.101(b), Occupations Code, is
	5481	+	amended to read as follows:
	5482	+	(b) On issuance of a cease and desist order, a department
	5483	+	employee or authorized department agent [the executive director]
	5484	+	shall serve a proposed cease and desist order on the racetrack
	5485	+	association or other license holder by personal delivery or
	5486	+	registered or certified mail, return receipt requested, to the
	5487	+	person's last known address.
	5488	+	SECTION 7.128. Sections 2033.102(b) and (c), Occupations
	5489	+	Code, are amended to read as follows:
	5490	+	(b) On receiving a request for a hearing, a department
	5491	+	employee or authorized department agent [the executive director]
	5492	+	shall serve notice of the time and place of the hearing by personal
	5493	+	delivery or registered or certified mail, return receipt requested.
	5494	+	(c) At a hearing, the department [commission] has the burden
	5495	+	of proof and must present evidence in support of the order. Each
	5496	+	person against whom the order is directed may cross-examine and
	5497	+	show cause why the order should not be issued.
	5498	+	SECTION 7.129. Section 2033.104(b), Occupations Code, is
	5499	+	amended to read as follows:
	5500	+	(b) After the executive director issues [issuing] an
	5501	+	emergency cease and desist order, a department employee or
	5502	+	authorized department agent [the executive director] shall serve on
	5503	+	the racetrack association or other license holder by personal
	5504	+	delivery or registered or certified mail, return receipt requested,
	5505	+	to the person's last known address, an order stating the specific
	5506	+	charges and requiring the person immediately to cease and desist
	5507	+	from the conduct that violates this subtitle or a commission rule.
	5508	+	The order must contain a notice that a request for hearing may be
	5509	+	filed under this section.
	5510	+	SECTION 7.130. Sections 2033.105(c) and (d), Occupations
	5511	+	Code, are amended to read as follows:
	5512	+	(c) On receiving a request for a hearing, a department
	5513	+	employee or authorized department agent [the executive director]
	5514	+	shall serve notice of the time and place of the hearing by personal
	5515	+	delivery or registered or certified mail, return receipt requested.
	5516	+	The hearing must be held not later than the 10th day after the date
	5517	+	the executive director receives the request for a hearing unless
	5518	+	the parties agree to a later hearing date.
	5519	+	(d) At the hearing, the department [commission] has the
	5520	+	burden of proof and must present evidence in support of the order.
	5521	+	The person requesting the hearing may cross-examine witnesses and
	5522	+	show cause why the order should not be affirmed. [Section
	5523	+	2003.021(b), Government Code, does not apply to hearings conducted
	5524	+	under this section.]
	5525	+	SECTION 7.131. Section 2033.106(a), Occupations Code, is
	5526	+	amended to read as follows:
	5527	+	(a) If the executive director reasonably believes that a
	5528	+	person has violated a final and enforceable cease and desist or
	5529	+	emergency order, the executive director may:
	5530	+	(1) initiate administrative penalty proceedings under
	5531	+	Subchapter B;
	5532	+	(2) refer the matter to the attorney general for
	5533	+	enforcement by injunction and any other available remedy; or
	5534	+	(3) pursue any other action that the executive
	5535	+	director considers appropriate, including suspension of the
	5536	+	person's license.
	5537	+	SECTION 7.132. Section 2033.151, Occupations Code, is
	5538	+	amended to read as follows:
	5539	+	Sec. 2033.151. DISCIPLINARY ACTIONS. (a) The commission
	5540	+	may [shall] revoke, suspend, or refuse to renew a license, place on
	5541	+	probation a person whose license has been suspended, or reprimand a
	5542	+	license holder for a violation of this subtitle or a commission
	5543	+	rule.
	5544	+	(b) If a license suspension is probated, the commission may
	5545	+	require the license holder to report regularly to the department
	5546	+	[commission] on matters that are the basis of the probation.
	5547	+	(c) A disciplinary proceeding under this subtitle is
	5548	+	governed by:
	5549	+	(1) Chapter 51; and
	5550	+	(2) commission rules adopted under Chapter 51.
	5551	+	SECTION 7.133. The heading to Section 2033.152, Occupations
	5552	+	Code, is amended to read as follows:
	5553	+	Sec. 2033.152. PROCEEDING FOR DISCIPLINARY ACTION
	5554	+	[HEARING] CONCERNING SUSPENSION, REVOCATION, OR REFUSAL TO RENEW
	5555	+	LICENSE.
	5556	+	SECTION 7.134. Section 2033.152(b), Occupations Code, is
	5557	+	amended to read as follows:
	5558	+	(b) A proceeding [Proceedings] for a disciplinary action,
	5559	+	other than those conducted by a steward or judge, in which the
	5560	+	commission proposes to suspend, revoke, or refuse to renew a
	5561	+	person's license is [are] governed by Chapter 2001, Government
	5562	+	Code.
	5563	+	SECTION 7.135. Section 2033.153, Occupations Code, is
	5564	+	amended to read as follows:
	5565	+	Sec. 2033.153. INJUNCTION. The department [commission] may
	5566	+	institute an action in its own name to enjoin the violation of this
	5567	+	subtitle. An action for an injunction is in addition to any other
	5568	+	action, proceeding, or remedy authorized by law.
	5569	+	SECTION 7.136. Section 2033.154(b), Occupations Code, is
	5570	+	amended to read as follows:
	5571	+	(b) The executive director may issue an order prohibiting
	5572	+	the racetrack association from making any transfer from a bank
	5573	+	account held by the racetrack association for the conduct of
	5574	+	business under this subtitle, pending department [commission]
	5575	+	review of the records of the account, if the executive director
	5576	+	reasonably believes that the racetrack association has failed to
	5577	+	maintain the proper amount of money in the horsemen's account. The
	5578	+	executive director shall provide in the order a procedure for the
	5579	+	racetrack association to pay certain expenses necessary for the
	5580	+	operation of the racetrack, subject to the executive director's
	5581	+	approval.
	5582	+	SECTION 7.137. Section 2034.001, Occupations Code, is
	5583	+	amended by amending Subsections (b) and (c) and adding Subsection
	5584	+	(e) to read as follows:
	5585	+	(b) The rules adopted under this section by the commission
	5586	+	shall require testing to determine whether a prohibited substance
	5587	+	has been used.
	5588	+	(c) The [commission's] rules adopted under this section
	5589	+	must require state-of-the-art testing methods. The testing may:
	5590	+	(1) be prerace or postrace as determined by the
	5591	+	department [commission]; and
	5592	+	(2) be by an invasive or noninvasive method.
	5593	+	(e) The commission shall adopt rules regarding disciplinary
	5594	+	actions under this chapter, including the right of appeal to the
	5595	+	commission from a disciplinary action under Section 2034.006.
	5596	+	SECTION 7.138. Section 2034.002, Occupations Code, is
	5597	+	amended to read as follows:
	5598	+	Sec. 2034.002. MEDICATION AND DRUG TESTING PROCEDURES. (a)
	5599	+	Medication or drug testing performed on a race animal under this
	5600	+	subtitle must be conducted by:
	5601	+	(1) the Texas A&M Veterinary Medical Diagnostic
	5602	+	Laboratory; or
	5603	+	(2) a laboratory operated by or in conjunction with or
	5604	+	by a private or public agency selected by the department
	5605	+	[commission] after consultation with the Texas A&M Veterinary
	5606	+	Medical Diagnostic Laboratory.
	5607	+	(b) Medication or drug testing performed on a human under
	5608	+	this subtitle must be conducted by a laboratory approved by the
	5609	+	department [commission].
	5610	+	SECTION 7.139. Sections 2034.003(c), (d), and (e),
	5611	+	Occupations Code, are amended to read as follows:
	5612	+	(c) Charges for services performed under this section must
	5613	+	be forwarded to the department [commission] for approval of the
	5614	+	reasonableness of the charges. Charges may include expenses
	5615	+	incurred for travel, lodging, testing, and processing of test
	5616	+	results.
	5617	+	(d) The department [commission] shall determine whether the
	5618	+	laboratory charges are reasonable in relation to industry standards
	5619	+	by periodically surveying the drug testing charges of comparable
	5620	+	laboratories in the United States.
	5621	+	(e) The racetrack association that receives the services is
	5622	+	responsible for the cost of approved charges for animal drug
	5623	+	testing services under this section. The department [commission]
	5624	+	shall forward a copy of the charges to the racetrack association for
	5625	+	immediate payment.
	5626	+	SECTION 7.140. Sections 2034.005(a) and (b), Occupations
	5627	+	Code, are amended to read as follows:
	5628	+	(a) The department [commission] may require urine samples
	5629	+	to be frozen for a period necessary to allow any follow-up testing
	5630	+	to detect and identify a prohibited substance. Any other specimen
	5631	+	shall be maintained for testing purposes in a manner required by
	5632	+	commission rule.
	5633	+	(b) If a test sample or specimen shows the presence of a
	5634	+	prohibited substance, the entire sample, including any split
	5635	+	portion remaining in the custody of the department [commission],
	5636	+	shall be maintained until final disposition of the matter.
	5637	+	SECTION 7.141. Section 2034.007, Occupations Code, is
	5638	+	amended to read as follows:
	5639	+	Sec. 2034.007. DISCIPLINARY ACTION FOR RULE VIOLATION OF
	5640	+	PROHIBITED DEVICE OR SUBSTANCE. In addition to any other
	5641	+	disciplinary action authorized by Chapter 51, this subtitle, or
	5642	+	commission rule, a [A] person who violates a rule adopted under this
	5643	+	chapter may:
	5644	+	(1) have any license issued to the person by the
	5645	+	department [commission] revoked or suspended; or
	5646	+	(2) be barred for life or any other period from
	5647	+	applying for or receiving a license issued by the department
	5648	+	[commission] or entering any portion of a racetrack.
	5649	+	SECTION 7.142. Section 2035.001(a), Occupations Code, is
	5650	+	amended to read as follows:
	5651	+	(a) The department [commission] may not issue a racetrack
	5652	+	license or accept a license application for a racetrack to be
	5653	+	located in a county until the commissioners court has certified to
	5654	+	the secretary of state that the qualified voters of the county have
	5655	+	approved the legalization of pari-mutuel wagering on horse races or
	5656	+	greyhound races in the county at an election held under this
	5657	+	chapter.
	5658	+	SECTION 7.143. Section 2035.052, Occupations Code, is
	5659	+	amended to read as follows:
	5660	+	Sec. 2035.052. PARTIES. Any person who is licensed or who
	5661	+	has submitted to the department [commission] an application to be
	5662	+	licensed in any capacity under this subtitle may become a named
	5663	+	party to the contest proceedings by pleading to the petition on or
	5664	+	before the time set for hearing and trial as provided by Section
	5665	+	2035.053(b) or after that time by intervention on leave of court.
	5666	+	SECTION 7.144. Section 151.801(c-3), Tax Code, is amended
	5667	+	to read as follows:
	5668	+	(c-3) Subject to the limitation imposed under Section
	5669	+	2028.2041, Occupations Code, an amount equal to the proceeds from
	5670	+	the collection of the taxes imposed by this chapter on the sale,
	5671	+	storage, or use of horse feed, horse supplements, horse tack, horse
	5672	+	bedding and grooming supplies, and other taxable expenditures
	5673	+	directly related to horse ownership, riding, or boarding shall be
	5674	+	deposited to the credit of the horse industry escrow account
	5675	+	administered by the Texas Department of Licensing and Regulation
	5676	+	[Racing Commission] and established under Section 2028.204,
	5677	+	Occupations Code.
	5678	+	SECTION 7.145. Article 2.12, Code of Criminal Procedure, is
	5679	+	amended to read as follows:
	5680	+	Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
	5681	+	officers:
	5682	+	(1) sheriffs, their deputies, and those reserve
	5683	+	deputies who hold a permanent peace officer license issued under
	5684	+	Chapter 1701, Occupations Code;
	5685	+	(2) constables, deputy constables, and those reserve
	5686	+	deputy constables who hold a permanent peace officer license issued
	5687	+	under Chapter 1701, Occupations Code;
	5688	+	(3) marshals or police officers of an incorporated
	5689	+	city, town, or village, and those reserve municipal police officers
	5690	+	who hold a permanent peace officer license issued under Chapter
	5691	+	1701, Occupations Code;
	5692	+	(4) rangers, officers, and members of the reserve
	5693	+	officer corps commissioned by the Public Safety Commission and the
	5694	+	Director of the Department of Public Safety;
	5695	+	(5) investigators of the district attorneys', criminal
	5696	+	district attorneys', and county attorneys' offices;
	5697	+	(6) law enforcement agents of the Texas Alcoholic
	5698	+	Beverage Commission;
	5699	+	(7) each member of an arson investigating unit
	5700	+	commissioned by a city, a county, or the state;
	5701	+	(8) officers commissioned under Section 37.081,
	5702	+	Education Code, or Subchapter E, Chapter 51, Education Code;
	5703	+	(9) officers commissioned by the General Services
	5704	+	Commission;
	5705	+	(10) law enforcement officers commissioned by the
	5706	+	Parks and Wildlife Commission;
	5707	+	(11) airport police officers commissioned by a city
	5708	+	with a population of more than 1.18 million located primarily in a
	5709	+	county with a population of 2 million or more that operates an
	5710	+	airport that serves commercial air carriers;
	5711	+	(12) airport security personnel commissioned as peace
	5712	+	officers by the governing body of any political subdivision of this
	5713	+	state, other than a city described by Subdivision (11), that
	5714	+	operates an airport that serves commercial air carriers;
	5715	+	(13) municipal park and recreational patrolmen and
	5716	+	security officers;
	5717	+	(14) security officers and investigators commissioned
	5718	+	as peace officers by the comptroller;
	5719	+	(15) officers commissioned by a water control and
	5720	+	improvement district under Section 49.216, Water Code;
	5721	+	(16) officers commissioned by a board of trustees
	5722	+	under Chapter 54, Transportation Code;
	5723	+	(17) investigators commissioned by the Texas Medical
	5724	+	Board;
	5725	+	(18) officers commissioned by:
	5726	+	(A) the board of managers of the Dallas County
	5727	+	Hospital District, the Tarrant County Hospital District, the Bexar
	5728	+	County Hospital District, or the El Paso County Hospital District
	5729	+	under Section 281.057, Health and Safety Code;
	5730	+	(B) the board of directors of the Ector County
	5731	+	Hospital District under Section 1024.117, Special District Local
	5732	+	Laws Code;
	5733	+	(C) the board of directors of the Midland County
	5734	+	Hospital District of Midland County, Texas, under Section 1061.121,
	5735	+	Special District Local Laws Code; and
	5736	+	(D) the board of hospital managers of the Lubbock
	5737	+	County Hospital District of Lubbock County, Texas, under Section
	5738	+	1053.113, Special District Local Laws Code;
	5739	+	(19) county park rangers commissioned under
	5740	+	Subchapter E, Chapter 351, Local Government Code;
	5741	+	(20) investigators employed by the Texas Department of
	5742	+	Licensing and Regulation in relation to the regulation of racing
	5743	+	under Subtitle A-1, Title 13, Occupations Code [Racing Commission];
	5744	+	(21) officers commissioned under Chapter 554,
	5745	+	Occupations Code;
	5746	+	(22) officers commissioned by the governing body of a
	5747	+	metropolitan rapid transit authority under Section 451.108,
	5748	+	Transportation Code, or by a regional transportation authority
	5749	+	under Section 452.110, Transportation Code;
	5750	+	(23) investigators commissioned by the attorney
	5751	+	general under Section 402.009, Government Code;
	5752	+	(24) security officers and investigators commissioned
	5753	+	as peace officers under Chapter 466, Government Code;
	5754	+	(25) officers appointed by an appellate court under
	5755	+	Subchapter F, Chapter 53, Government Code;
	5756	+	(26) officers commissioned by the state fire marshal
	5757	+	under Chapter 417, Government Code;
	5758	+	(27) an investigator commissioned by the commissioner
	5759	+	of insurance under Section 701.104, Insurance Code;
	5760	+	(28) apprehension specialists and inspectors general
	5761	+	commissioned by the Texas Juvenile Justice Department as officers
	5762	+	under Sections 242.102 and 243.052, Human Resources Code;
	5763	+	(29) officers appointed by the inspector general of
	5764	+	the Texas Department of Criminal Justice under Section 493.019,
	5765	+	Government Code;
	5766	+	(30) investigators commissioned by the Texas
	5767	+	Commission on Law Enforcement under Section 1701.160, Occupations
	5768	+	Code;
	5769	+	(31) commission investigators commissioned by the
	5770	+	Texas Private Security Board under Section 1702.061, Occupations
	5771	+	Code;
	5772	+	(32) the fire marshal and any officers, inspectors, or
	5773	+	investigators commissioned by an emergency services district under
	5774	+	Chapter 775, Health and Safety Code;
	5775	+	(33) officers commissioned by the State Board of
	5776	+	Dental Examiners under Section 254.013, Occupations Code, subject
	5777	+	to the limitations imposed by that section;
	5778	+	(34) investigators commissioned by the Texas Juvenile
	5779	+	Justice Department as officers under Section 221.011, Human
	5780	+	Resources Code; and
	5781	+	(35) the fire marshal and any related officers,
	5782	+	inspectors, or investigators commissioned by a county under
	5783	+	Subchapter B, Chapter 352, Local Government Code.
	5784	+	SECTION 7.146. (a) Section 411.096, Government Code, is
	5785	+	repealed.
	5786	+	(b) The following provisions of the Occupations Code are
	5787	+	repealed:
	5788	+	(1) Sections 2022.001(b), (c), (d), (e), and (f);
	5789	+	(2) Section 2022.002(b);
	5790	+	(3) Sections 2022.003, 2022.004, 2022.005, 2022.006,
	5791	+	and 2022.007;
	5792	+	(4) Sections 2022.009(b) and (c);
	5793	+	(5) Sections 2022.010, 2022.011, 2022.012, 2022.013,
	5794	+	2022.014, and 2022.051;
	5795	+	(6) Sections 2022.052(a) and (b);
	5796	+	(7) Sections 2022.053, 2022.054, 2022.055, 2022.056,
	5797	+	2022.057, 2022.101, 2022.102, and 2022.106;
	5798	+	(8) Sections 2023.004(b), (c), and (f);
	5799	+	(9) Section 2023.009;
	5800	+	(10) Section 2025.204(e);
	5801	+	(11) Section 2025.258(b);
	5802	+	(12) Sections 2033.053, 2033.054, 2033.055, and
	5803	+	2033.056;
	5804	+	(13) Section 2033.057(b); and
	5805	+	(14) Sections 2033.152(a) and (c).
	5806	+	(c) Title 6, Vernon's Texas Civil Statutes, is repealed.
	5807	+	SECTION 7.147. (a) On September 1, 2021, the Texas Racing
	5808	+	Commission is abolished but continues in existence until December
	5809	+	1, 2021, for the sole purpose of transferring all obligations,
	5810	+	property, rights, powers, duties, leases, contracts, software,
	5811	+	data, and full-time equivalent employee positions to the Texas
	5812	+	Department of Licensing and Regulation. The Texas Department of
	5813	+	Licensing and Regulation assumes all of the obligations, property,
	5814	+	rights, powers, duties, leases, contracts, software, data, and
	5815	+	full-time equivalent employee positions of the Texas Racing
	5816	+	Commission as they exist immediately before September 1, 2021. All
	5817	+	unexpended funds appropriated to the Texas Racing Commission are
	5818	+	transferred to the Texas Department of Licensing and Regulation.
	5819	+	(b) On September 1, 2021, all full-time equivalent employee
	5820	+	positions at the Texas Racing Commission become positions at the
	5821	+	Texas Department of Licensing and Regulation. On September 1,
	5822	+	2021, all employees who were employed by the Texas Racing
	5823	+	Commission on August 31, 2021, become employees of the Texas
	5824	+	Department of Licensing and Regulation, except for any employee in:
	5825	+	(1) an exempt position; or
	5826	+	(2) a position at or above salary group B27 in the
	5827	+	Texas Position Classification Plan, 1961.
	5828	+	(c) The Texas Racing Commission and the Texas Department of
	5829	+	Licensing and Regulation shall, in consultation with appropriate
	5830	+	state entities, ensure that the transfer of the obligations,
	5831	+	property, rights, powers, duties, leases, contracts, software,
	5832	+	data, and full-time equivalent employee positions of the Texas
	5833	+	Racing Commission to the Texas Department of Licensing and
	5834	+	Regulation is completed not later than December 1, 2021.
	5835	+	(d) All rules, fees, policies, procedures, decisions, and
	5836	+	forms adopted by the Texas Racing Commission are continued in
	5837	+	effect as rules, fees, policies, procedures, decisions, and forms
	5838	+	adopted by the Texas Department of Licensing and Regulation until
	5839	+	amended or superseded by a rule, fee, policy, procedure, decision,
	5840	+	or form adopted by the Texas Commission of Licensing and Regulation
	5841	+	or Texas Department of Licensing and Regulation, as applicable. A
	5842	+	license issued by the Texas Racing Commission is continued in
	5843	+	effect as provided by the law in effect immediately before
	5844	+	September 1, 2021. An application for a license, endorsement, or
	5845	+	certificate of registration pending on September 1, 2021, is
	5846	+	continued without change in status after September 1, 2021. A
	5847	+	complaint, investigation, contested case, or other proceeding
	5848	+	pending on September 1, 2021, is continued without change in status
	5849	+	after September 1, 2021.
	5850	+	(e) Beginning on the effective date of this subsection, the
	5851	+	Texas Racing Commission shall provide the Texas Department of
	5852	+	Licensing and Regulation, and other appropriate state entities,
	5853	+	access to any systems or information necessary for the Texas
	5854	+	Department of Licensing and Regulation to accept the obligations,
	5855	+	property, rights, powers, duties, leases, contracts, software,
	5856	+	data, and full-time equivalent employee positions transferred
	5857	+	under this Act, including:
	5858	+	(1) licensing, revenue, and expenditure systems and
	5859	+	any associated databases;
	5860	+	(2) contracts, leases, and licensing agreements;
	5861	+	(3) online renewal and new application systems and any
	5862	+	associated databases;
	5863	+	(4) pending judgments and outstanding expenditures;
	5864	+	and
	5865	+	(5) data related to persons employed by or contracted
	5866	+	with the Texas Racing Commission.
	5867	+	(f) Not later than September 1, 2022, the Texas Commission
	5868	+	of Licensing and Regulation shall adopt any rules necessary to
	5869	+	implement the changes in law made by this Act to Subtitle A-1, Title
	5870	+	13, Occupations Code.
	5871	+	(g) Unless the context indicates otherwise, a reference to
	5872	+	the Texas Racing Commission in a law or administrative rule means
	5873	+	the Texas Department of Licensing and Regulation.
	5874	+	SECTION 7.148. (a) Not later than December 1, 2021, the
	5875	+	presiding officer of the Texas Commission of Licensing and
	5876	+	Regulation, with the approval of the Texas Commission of Licensing
	5877	+	and Regulation, shall appoint members to the Texas Racing Advisory
	5878	+	Board in accordance with Section 2022.001, Occupations Code, as
	5879	+	amended by this Act. A member of the Texas Racing Commission whose
	5880	+	term expired under Section 7.147 of this Act is eligible for
	5881	+	appointment to the advisory board.
	5882	+	(b) The members of the Texas Racing Commission whose terms
	5883	+	expire under Section 7.147 of this Act shall continue to provide
	5884	+	advice to the Texas Department of Licensing and Regulation until a
	5885	+	majority of the members of the Texas Racing Advisory Board are
	5886	+	appointed under Subsection (a) of this section and qualified.
	5887	+	SECTION 7.149. (a) Not later than September 1, 2023, the
	5888	+	executive director of the Texas Department of Licensing and
	5889	+	Regulation in accordance with Section 51.202(c), Occupations Code,
	5890	+	shall determine with reasonable accuracy the cost to the department
	5891	+	of the racing program and activities for which a fee is charged.
	5892	+	(b) The executive director of the Texas Department of
	5893	+	Licensing and Regulation, on development of the cost management
	5894	+	procedures, shall make recommendations to the Texas Commission of
	5895	+	Licensing and Regulation for review and consideration.
	5896	+	SECTION 7.150. The changes in law made by this article apply
	5897	+	to revenue received from the imposition of an administrative
	5898	+	penalty on or after September 1, 2021, regardless of whether the
	5899	+	penalty was imposed before, on, or after September 1, 2021.
	5900	+	SECTION 7.151. A violation of a law that is repealed by this
	5901	+	article is governed by the law in effect when the violation
	5902	+	occurred, and the former law is continued in effect for that
	5903	+	purpose.
	5904	+	ARTICLE 8. TRANSITION AND EFFECTIVE DATE
	5905	+	SECTION 8.01. The repeal of a statute by this Act controls
3328	5906		over an amendment, revision, or reenactment of the statute by
3329	5907		another Act of the 87th Legislature, Regular Session, 2021,
3330	5908		regardless of relative dates of enactment and the amendment,
3331	5909		revision, or reenactment of the repealed statute has no effect.
3332		-	SECTION 6.02. Except as otherwise provided by this Act,
3333		-	this Act takes effect September 1, 2021.
3334		-	______________________________ ______________________________
3335		-	President of the Senate Speaker of the House
3336		-	I certify that H.B. No. 1560 was passed by the House on April
3337		-	30, 2021, by the following vote: Yeas 130, Nays 0, 2 present, not
3338		-	voting; that the House refused to concur in Senate amendments to
3339		-	H.B. No. 1560 on May 27, 2021, and requested the appointment of a
3340		-	conference committee to consider the differences between the two
3341		-	houses; and that the House adopted the conference committee report
3342		-	on H.B. No. 1560 on May 30, 2021, by the following vote: Yeas 140,
3343		-	Nays 0, 2 present, not voting.
3344		-	______________________________
3345		-	Chief Clerk of the House
3346		-	I certify that H.B. No. 1560 was passed by the Senate, with
3347		-	amendments, on May 24, 2021, by the following vote: Yeas 30, Nays
3348		-	0; at the request of the House, the Senate appointed a conference
3349		-	committee to consider the differences between the two houses; and
3350		-	that the Senate adopted the conference committee report on H.B. No.
3351		-	1560 on May 30, 2021, by the following vote: Yeas 31, Nays 0.
3352		-	______________________________
3353		-	Secretary of the Senate
3354		-	APPROVED: __________________
3355		-	Date
3356		-	__________________
3357		-	Governor
	5910	+	SECTION 8.02. (a) Except as otherwise provided by
	5911	+	Subsection (b) of this section, this Act takes effect September 1,
	5912	+	2021.
	5913	+	(b) Section 7.147(e) of this Act takes effect June 15, 2021,
	5914	+	if this Act receives a vote of two-thirds of all the members elected
	5915	+	to each house, as provided by Section 39, Article III, Texas
	5916	+	Constitution. If this Act does not receive the vote necessary for
	5917	+	immediate effect, Section 7.147(e) of this Act takes effect
	5918	+	September 1, 2021.
	5919	+	* * * * *