By: Goldman (Senate Sponsor - Buckingham) H.B. No. 1560          (In the Senate - Received from the House May 3, 2021;   May 10, 2021, read first time and referred to Committee on Business &   Commerce; May 21, 2021, reported adversely, with favorable   Committee Substitute by the following vote:  Yeas 9, Nays 0;   May 21, 2021, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR H.B. No. 1560 By:  Paxton     A BILL TO BE ENTITLED   AN ACT     relating to the continuation and functions of the Texas Department   of Licensing and Regulation.     ARTICLE 1. GENERAL POWERS AND DUTIES          SECTION 1.01.  Section 51.002, Occupations Code, is amended   to read as follows:          Sec. 51.002.  APPLICATION OF SUNSET ACT. [(a)] The Texas   Commission of Licensing and Regulation and the Texas Department of   Licensing and Regulation are subject to Chapter 325, Government   Code (Texas Sunset Act). Unless continued in existence as provided   by that chapter, the commission and the department are abolished   September 1, 2033 [2021].          [(b)  The review of the commission and department by the   Sunset Advisory Commission under this section may not include a   review of any program that was transferred to the department on or   after September 1, 2016.]          SECTION 1.02.  Section 51.054, Occupations Code, is amended   by amending Subsection (b) and adding Subsection (d) to read as   follows:          (b)  The training program must provide the person with   information regarding:                (1)  the law governing [legislation that created the]   department operations [and the commission];                (2)  the programs, functions, rules, and budget of    [operated by] the department;                (3)  the scope of and limitations on the rulemaking   authority of the commission [role and functions of the department];                (4)  [the rules of the department, with an emphasis on   the rules that relate to disciplinary and investigatory authority;                [(5)  the current budget for the department;                [(6)]  the results of the most recent formal audit of   the department;                (5) [(7)]  the requirements of:                      (A)  laws relating to [the] open meetings, [law,   Chapter 551, Government Code;                      [(B)  the] public information, [law, Chapter 552,   Government Code;                      [(C)  the] administrative procedure, and   disclosing conflicts of interest [law, Chapter 2001, Government   Code]; and                      (B) [(D)]  other laws applicable to members of a   state policy-making body in performing their duties [relating to   public officials, including conflict-of-interest laws]; and                (6) [(8)]  any applicable ethics policies adopted by   the department or the Texas Ethics Commission.          (d)  The executive director of the department shall create a   training manual that includes the information required by   Subsection (b). The executive director shall distribute a copy of   the training manual annually to each member of the commission. Each   member of the commission shall sign and submit to the executive   director a statement acknowledging that the member received and has   reviewed the training manual.          SECTION 1.03.  Section 51.209, Occupations Code, is amended   by adding Subsections (a-1) and (a-2) to read as follows:          (a-1)  An advisory board shall meet at the call of the   executive director or the presiding officer of the commission.          (a-2)  An advisory board may meet by telephone conference   call, videoconference, or other similar telecommunication method,   provided that each portion of the meeting that is required to be   open to the public shall be audible to the public and, in the case of   a meeting held by videoconference, visible to the public.  If a   problem occurs that causes a meeting to no longer be visible or   audible to the public as required under this subsection, the   meeting must be recessed until the problem is resolved.  If the   problem is not resolved in six hours or less, the meeting must be   adjourned.  The face of each participant in a meeting held by   videoconference, while that participant is speaking, must be   clearly visible, and the participant's voice must be audible, to   each other participant and, during the open portion of the meeting,   to the members of the public.  A meeting held by telephone   conference call, videoconference, or other similar   telecommunication method is not subject to the requirements of   Sections 551.127(a-3), (b), (c), (e), (f), (h), (i), and (j),   Government Code.          SECTION 1.04.  Subchapter D, Chapter 51, Occupations Code,   is amended by adding Sections 51.2095 and 51.211 to read as follows:          Sec. 51.2095.  INTERDISCIPLINARY ADVISORY BOARDS. The   executive director or the presiding officer of the commission may   appoint interdisciplinary advisory boards consisting of members   from various businesses, industries, general trades, or   occupations to provide expertise related to a program regulated by   the department.          Sec. 51.211.  RISK-BASED INSPECTIONS. (a) The department   shall conduct risk-based inspections that prioritize inspections   based on key risk factors identified by the department, including:                (1)  whether a license holder has previously violated a   law establishing a regulatory program administered by the   department or a rule or order of the commission or executive   director; and                (2)  the number of violations committed by a license   holder.          (b)  The department may use alternative inspection methods,   including the use of videoconference technology or other methods   instead of conducting an in-person inspection, in circumstances the   department considers appropriate.          SECTION 1.05.  Section 51.251, Occupations Code, is amended   by adding Subsection (c) to read as follows:          (c)  The executive director shall establish methods by which   consumers and service recipients are notified of the name, mailing   address, and telephone number of the department for the purpose of   directing complaints to the department.          SECTION 1.06.  Section 51.252, Occupations Code, is amended   by amending Subsections (a) and (c) and adding Subsection (b-2) to   read as follows:          (a)  The department shall maintain a system to promptly and   efficiently act on complaints filed with the department. The   department shall maintain information about parties to the   complaint, the subject matter of the complaint, a summary of the   results of the review or investigation of the complaint, and its   disposition [The executive director shall establish methods by   which consumers and service recipients are notified of the name,   mailing address, and telephone number of the department for the   purpose of directing complaints to the department. The department   shall provide to the person filing the complaint and to each person   who is a subject of the complaint information about the   department's policies and procedures relating to complaint   investigation and resolution].          (b-2)  The department shall make information available   describing its procedures for complaint investigation and   resolution.          (c)  The department [, at least quarterly and until final   disposition of the complaint,] shall periodically notify the   [person filing the] complaint parties [and each person who is a   subject of the complaint] of the status of the complaint until final   disposition [investigation] unless the notice would jeopardize an   [undercover] investigation.          SECTION 1.07.  Subchapter E, Chapter 51, Occupations Code,   is amended by adding Sections 51.2521 and 51.255 to read as follows:          Sec. 51.2521.  COMPLAINT INVESTIGATION. (a) The department   shall assign priorities and investigate complaints based on risk to   the public of the conduct alleged in the complaint.          (b)  If the department determines at any time that an   allegation made or formal complaint submitted by a person is   inappropriate or without merit, the department shall dismiss the   complaint.          Sec. 51.255.  STATISTICAL ANALYSIS OF COMPLAINTS. (a) The   department shall make available on the department's Internet   website a statistical analysis of the complaints received by the   department.          (b)  The analysis under this section must include aggregate   information on the number, source, type, and disposition of   complaints received during the preceding state fiscal year and must   include, as applicable, the following information for each program   regulated by the department:                (1)  the number of license holders;                (2)  the number of complaints received against license   holders;                (3)  the number of complaints resolved and the manner   in which they were resolved, including:                      (A)  the number of complaints dismissed and the   reasons for dismissal;                      (B)  the number of contested cases referred to and   heard by the State Office of Administrative Hearings;                      (C)  the number of cases appealed to a district   court;                      (D)  the number of complaints resulting in   disciplinary action, the disciplinary action taken, and whether the   disciplinary action was imposed by an agreed settlement or default   order issued by the executive director or a final order issued by   the commission;                      (E)  a breakdown of the nature of the alleged   violations in:                            (i)  complaints opened for investigation;   and                            (ii)  cases that resulted in disciplinary   action; and                      (F)  the number of complaints resolved,   categorized by whether the complaint originated from department   staff or from the public;                (4)  the average time required to resolve a complaint;                (5)  the average amount of administrative penalties   assessed; and                (6)  the number and amount of refunds ordered by the   commission or executive director or obtained through an informal   resolution.          SECTION 1.08.  Section 51.351, Occupations Code, is amended   by adding Subsection (e) to read as follows:          (e)  The department may take action under Section 51.353 for   a violation identified during an inspection.          SECTION 1.09.  Subchapter G, Chapter 51, Occupations Code,   is amended by adding Section 51.359 to read as follows:          Sec. 51.359.  REFUND. (a) Subject to Subsection (b), the   commission or executive director may order a license holder to pay a   refund to a consumer as provided in an agreed settlement, default   order, or commission order instead of or in addition to imposing an   administrative penalty or sanction.          (b)  The amount of a refund ordered may not exceed the amount   the consumer paid to the license holder for a service regulated by   the department. The commission or executive director may not   require payment of other damages or estimate harm in a refund order.          SECTION 1.10.  Section 51.4012(a), Occupations Code, is   amended to read as follows:          (a)  Notwithstanding any other law, the commission may   determine that a person is not eligible for a license based on the   person's criminal history [or other information that indicates that   the person lacks the honesty, trustworthiness, and integrity to   hold a license issued by the department].          SECTION 1.11.  Section 51.405, Occupations Code, is amended   to read as follows:          Sec. 51.405.  CONTINUING EDUCATION. (a) The department   [commission] shall recognize, prepare, or administer continuing   education programs for license holders. A license holder must   participate in the programs to the extent required by the   commission to keep the person's license.          (b)  Notwithstanding other law, the commission by rule may:                (1)  establish a minimum number of hours of continuing   education required for license renewal;                (2)  provide for the registration and renewal of   continuing education providers and the approval of continuing   education courses; and                (3)  assess reasonable and necessary fees on continuing   education providers.          (c)  In adopting rules under this section for a program   regulated by the department, the commission shall consult, if   applicable, with the advisory board established for the program.          SECTION 1.12.  Subchapter H, Chapter 51, Occupations Code,   is amended by adding Section 51.409 to read as follows:          Sec. 51.409.  FINANCIAL DISCLOSURE STATEMENT. (a) The   commission by rule may require a person, other than an individual,   applying for a license issued by the department to submit with the   license application a financial disclosure statement. The rules   may require any of the following information to be disclosed based   on the type of license for which the application is submitted:                (1)  the name of the applicable business entity;                (2)  the name of each person who has a direct financial   investment in the business;                (3)  the name of each person, other than an individual,   who:                      (A)  has a financial investment in the business;   and                      (B)  is not otherwise disclosed under Subdivision   (2);                (4)  the total amount or percentage of the financial   investment made by each person described by Subdivision (2); and                (5)  the name of each of the following persons   associated with the business, if the person is not otherwise   disclosed under Subdivision (2) or (3):                      (A)  a partner;                      (B)  an officer;                      (C)  a director;                      (D)  a managing employee;                      (E)  an owner or person who controls the owner;   and                      (F)  a person who acts as a controlling person of   the business through the exercise of direct or indirect influence   or control over the management of the business, the expenditure of   money by the business, or a policy of the business, including:                            (i)  any management company, landlord,   marketing company, or similar person who operates or contracts for   the operation of the business and, if the business is a publicly   traded corporation or is controlled by a publicly traded   corporation, any officer or director of the corporation;                            (ii)  an individual who has a personal,   familial, or other relationship with an owner, manager, landlord,   tenant, or provider of a business that allows the individual to   exercise actual control of the business; and                            (iii)  any other person the commission by   rule requires to be included based on the person's exercise of   direct or indirect influence or control other than a shareholder or   lender of the corporation.          (b)  The department may deny an application for the issuance   or renewal of a license or may suspend or revoke a license on the   grounds that an applicant or license holder:                (1)  fails to disclose a relationship for which   disclosure is required by rules adopted under this section; or                (2)  discloses a relationship for which disclosure is   required by rules adopted under this section with a person whose   license was revoked or who has failed to comply with an order of the   commission or executive director.          SECTION 1.13.  Section 202.505, Occupations Code, is amended   to read as follows:          Sec. 202.505.  REEXAMINATION IF LICENSE SUSPENDED OR   REVOKED. The department may refuse to reinstate a license or to   issue a new license until a podiatrist has passed the regular   license examination if the commission or executive director   suspended or revoked the license for:                (1)  failure to satisfy continuing education   requirements [under Section 202.305]; or                (2)  nonpayment of the license renewal fee.          SECTION 1.14.  Section 402.207(c), Occupations Code, is   amended to read as follows:          (c)  An apprentice permit holder shall work under the   supervision of a license holder for at least one year. [During the   apprentice year, the apprentice permit holder shall complete 20   hours of classroom continuing education as required by Section   402.303 for a license holder.]          SECTION 1.15.  Section 402.305, Occupations Code, is amended   to read as follows:          Sec. 402.305.  CONTINUING EDUCATION EXEMPTIONS. The   department may renew the license of a license holder who does not   comply with the applicable continuing education requirements [of   Section 402.303 or 402.304] if the license holder:                (1)  was licensed for the first time during the 24   months before the reporting date; or                (2)  submits proof from an attending physician that the   license holder suffered a serious or disabling illness or physical   disability that prevented compliance with the continuing education   requirements during the 24 months before the reporting date.          SECTION 1.16.  Section 802.062(b), Occupations Code, is   amended to read as follows:          (b)  An [The] inspection by the department must be conducted   during the facility's normal business hours, and the licensed   breeder or a representative of the licensed breeder must be given a   reasonable opportunity to be present during the inspection.          SECTION 1.17.  Section 1151.1581, Occupations Code, is   amended to read as follows:          Sec. 1151.1581.  CONTINUING EDUCATION. (a) [The commission   shall recognize, prepare, or administer continuing education   programs for registrants under this chapter.          [(b)]  The comptroller must review and approve any [all]   continuing education programs for registrants.          (b) [(c)  A registrant must participate in the programs to   the extent required by the department to keep the person's   certificate of registration.          [(d)  The commission may set fees for continuing education   courses and providers of continuing education courses in amounts   reasonable and necessary to cover the department's costs in   administering the department's duties under this section.          [(e)]  The comptroller may set fees for any continuing   education courses and providers of continuing education courses in   amounts reasonable and necessary to cover the comptroller's costs   in administering the comptroller's duties under this section.          [(f)  As part of the continuing education requirements for a   registered professional appraiser who is the chief appraiser of an   appraisal district, the commission by rule shall require the   registrant to complete:                [(1)  at least half of the required hours in a program   devoted to one or more of the topics listed in Section 1151.164(b);   and                [(2)  at least two of the required hours in a program of   professional ethics specific to the chief appraiser of an appraisal   district, including a program on the importance of maintaining the   independence of an appraisal office from political pressure.]          SECTION 1.18.  Section 1152.106, Occupations Code, is   amended to read as follows:          Sec. 1152.106.  [MEETINGS;] VOTE REQUIRED FOR ACTION.  [(a)     The council shall meet at least semiannually at the call of the   presiding officer or at the call of a majority of its members.          [(b)]  A decision of the council is not effective unless it   receives the affirmative vote of at least four members.          SECTION 1.19.  Section 1953.106, Occupations Code, is   amended to read as follows:          Sec. 1953.106.  RENEWAL OF CERTIFICATE. [(a)] To renew a   certificate of registration under this chapter, a professional   sanitarian must:                (1)  pay to the department a renewal fee prescribed by   the commission by rule; and                (2)  provide proof of completion of any applicable   continuing education requirements prescribed by the commission by   rule.          SECTION 1.20.  Section 1958.104, Occupations Code, is   amended to read as follows:          Sec. 1958.104.  RULES REGARDING LICENSE APPLICATION. The   commission shall adopt rules regarding a license application. The   commission shall adopt rules that establish minimum requirements   for a license, including:                (1)  the type of license;                (2)  the qualifications for the license, including any   previous training required under Section 1958.106;                (3)  renewal requirements for the license[, including   ongoing continuing education required under Section 1958.106]; and                (4)  liability insurance requirements for the license.          SECTION 1.21.  Section 1958.106, Occupations Code, is   amended to read as follows:          Sec. 1958.106.  TRAINING [; CONTINUING EDUCATION]. (a) The   commission shall adopt rules regarding training required under this   chapter [and continuing education required for a license holder   under this chapter].          (b)  The rules may include requirements regarding training   [and continuing education] providers, including rules   establishing:                (1)  accreditation by the department;                (2)  curriculum requirements; and                (3)  qualifications.          SECTION 1.22.  Section 2308.157, Occupations Code, is   amended to read as follows:          Sec. 2308.157.  REQUIREMENT FOR INITIAL RENEWAL OF INCIDENT   MANAGEMENT TOWING OPERATOR'S LICENSE [CONTINUING EDUCATION]. [(a)     The commission by rule shall recognize, prepare, or administer   continuing education programs for license holders. Except as   provided by Subsection (c), each license holder must complete a   continuing education program before the license holder may renew   the license holder's license.          [(b)  A person recognized by the commission to offer a   continuing education program must:                [(1)  register with the department; and                [(2)  comply with rules adopted by the commission   relating to continuing education.          [(c)]  To renew an incident management towing operator's   license the first time, a license holder must complete a   professional development course relating to incident management   towing that is approved and administered by the department [under   this section].          SECTION 1.23.  Section 2308.159(c), Occupations Code, is   amended to read as follows:          (c)  A license holder may renew a license issued under this   chapter by:                (1)  submitting an application on a form prescribed by   the executive director;                (2)  submitting evidence demonstrating compliance with   the requirements for the license type as required by this chapter or   commission rule;                (3)  paying a renewal fee; and                (4)  completing any applicable continuing education   requirements [as required by Section 2308.157].          SECTION 1.24.  The following provisions are repealed:                (1)  Section 1001.058(h), Education Code;                (2)  Section 469.053(e), Government Code;                (3)  Section 754.012(d), Health and Safety Code;                (4)  Section 754.0174, Health and Safety Code;                (5)  Section 755.016, Health and Safety Code;                (6)  Section 51.0021, Occupations Code;                (7)  Section 51.252(d), Occupations Code;                (8)  Section 202.305, Occupations Code;                (9)  Section 202.5085, Occupations Code;                (10)  Section 203.304, Occupations Code;                (11)  Section 203.406, Occupations Code;                (12)  Section 401.355, Occupations Code;                (13)  Section 402.303, Occupations Code;                (14)  Section 403.152, Occupations Code;                (15)  Section 455.0571, Occupations Code;                (16)  Section 506.105, Occupations Code;                (17)  Section 605.261, Occupations Code;                (18)  Section 701.303, Occupations Code;                (19)  Section 701.512, Occupations Code;                (20)  Section 802.062(a), Occupations Code;                (21)  Section 802.065(e), Occupations Code;                (22)  Section 1152.204, Occupations Code;                (23)  Section 1302.208(a), Occupations Code;                (24)  Section 1305.055, Occupations Code;                (25)  Section 1305.168, Occupations Code;                (26)  Section 1901.107(a), Occupations Code;                (27)  Section 1952.1051, Occupations Code;                (28)  Section 1958.056(b), Occupations Code;                (29)  Section 2303.056(b), Occupations Code;                (30)  Section 2308.055, Occupations Code;                (31)  Section 2309.056, Occupations Code; and                (32)  Section 2309.106(a), Occupations Code.          SECTION 1.25.  (a) Except as provided by Subsection (b) of   this section, Section 51.054, Occupations Code, as amended by this   article, applies to a member of the Texas Commission of Licensing   and Regulation appointed before, on, or after September 1, 2021.          (b)  A member of the Texas Commission of Licensing and   Regulation who, before September 1, 2021, completed the training   program required by Section 51.054, Occupations Code, as that law   existed before September 1, 2021, is only required to complete   additional training on the subjects added by this article to the   training program required by Section 51.054, Occupations Code. A   member described by this subsection may not vote, deliberate, or be   counted as a member in attendance at a meeting of the commission   held on or after December 1, 2021, until the member completes the   additional training.   ARTICLE 2. DEREGULATION          SECTION 2.01.  The following provisions of the Occupations   Code are repealed:                (1)  Chapter 1703; and                (2)  Section 2052.002(11-a).          SECTION 2.02.  Section 54.0405(d), Family Code, is amended   to read as follows:          (d)  A polygraph examination required as a condition of   probation under Subsection (a) must be administered by an   individual who is [:                [(1)]  specified by the local juvenile probation   department supervising the child [; and                [(2)  licensed as a polygraph examiner under Chapter   1703, Occupations Code].          SECTION 2.03.  Sections 411.0074(c) and (d), Government   Code, are amended to read as follows:          (c)  The polygraph examination required by this section may   only be administered by a polygraph examiner [licensed under   Chapter 1703, Occupations Code,] who:                (1)  is a peace officer commissioned by the department;   or                (2)  has a minimum of two years of experience   conducting preemployment polygraph examinations for a law   enforcement agency.          (d)  The department and the polygraph examiner shall   maintain the confidentiality of the results of a polygraph   examination administered under this section, except that [:                [(1)  the department and the polygraph examiner may   disclose the results in accordance with Section 1703.306,   Occupations Code; and                [(2)  notwithstanding Section 1703.306, Occupations   Code,] the department may disclose any admission of criminal   conduct made during the course of an examination to another   appropriate governmental entity.          SECTION 2.04.  Section 245.053(d), Human Resources Code, is   amended to read as follows:          (d)  A polygraph examination required as a condition of   release under Subsection (a) must be administered by an individual   who is [:                [(1)]  specified by the department [; and                [(2)  licensed as a polygraph examiner under Chapter   1703, Occupations Code].          SECTION 2.05.  Section 2052.107, Occupations Code, is   amended to read as follows:          Sec. 2052.107.  OTHER COMBATIVE SPORTS LICENSES. Unless a   person holds a license or registration issued under this chapter,   the person may not act as a combative sports:                (1)  professional contestant;                (2)  manager of a professional contestant;                (3)  referee; or                (4)  judge [;                [(5)  second;                [(6)  matchmaker; or                [(7)  event coordinator].          SECTION 2.06.  On September 1, 2021, the Polygraph Advisory   Committee is abolished.          SECTION 2.07.  On September 1, 2021, a pending regulatory   action, including a complaint investigation, disciplinary action,   or administrative penalty proceeding, of the Texas Department of   Licensing and Regulation with respect to a license, permit, or   certification issued under a law repealed by this article, is   terminated.          SECTION 2.08.  On September 1, 2021, a license, permit, or   certification issued under a law repealed by this article expires.          SECTION 2.09.  Not later than January 1, 2023, the Texas   Department of Licensing and Regulation, in consultation with the   Auctioneer Advisory Board, shall study the regulation of   auctioneering and prepare a report with any findings and   recommendations to improve public safety and the department's   processes and to eliminate inefficiencies, including any necessary   legislative changes.  In conducting the study, the department may   consult with any interested organizations, associations, and   stakeholders.  The department shall submit the report to the   standing legislative committees with jurisdiction over the   department.   ARTICLE 3. BARBERING AND COSMETOLOGY          SECTION 3.01.  Section 1603.001, Occupations Code, is   amended to read as follows:          Sec. 1603.001.  GENERAL DEFINITIONS. [(a)] In this   chapter:                (1)  "Advisory board" means the Barbering and   Cosmetology Advisory Board.                (2)  "Commission" means the Texas Commission of   Licensing and Regulation.                (3) [(2)]  "Department" means the Texas Department of   Licensing and Regulation.                (4)  "Establishment" means a place:                      (A)  in which barbering or cosmetology is   practiced; and                      (B)  that is required to hold a license issued   under Subchapter E-2.                (5) [(3)]  "Executive director" means the executive   director of the department.                (6)  "Manager" means the person who controls or directs   the business of an establishment or directs the work of a person   employed in an establishment.                (7)  "School" means a public secondary school, public   postsecondary school, or private postsecondary school:                      (A)  in which barbering or cosmetology is taught;   and                      (B)  that is required to hold a license issued   under Subchapter E-3.          [(b)  Unless the context clearly indicates otherwise, the   definitions in Chapters 1601 and 1602 apply to this chapter.]          SECTION 3.02.  Subchapter A, Chapter 1603, Occupations Code,   is amended by adding Sections 1603.0011, 1603.0012, and 1603.0013   to read as follows:          Sec. 1603.0011.  PRACTICE OF BARBERING OR COSMETOLOGY. (a)     The practices of barbering and cosmetology consist of performing or   offering to perform for compensation any of the following services:                (1)  treating a person's hair by:                      (A)  providing any method of treatment as a   primary service, including arranging, beautifying, bleaching,   cleansing, coloring, cutting, dressing, dyeing, processing,   shaping, singeing, straightening, styling, tinting, or waving;                      (B)  providing a necessary service that is   preparatory or ancillary to a service under Paragraph (A),   including bobbing, clipping, cutting, or trimming a person's hair   or shaving a person's neck with a safety razor; or                      (C)  cutting the person's hair as a separate and   independent service for which a charge is directly or indirectly   made separately from charges for any other service;                (2)  treating a person's mustache or beard by   arranging, beautifying, coloring, processing, styling, trimming,   or shaving with a safety razor;                (3)  cleansing, stimulating, or massaging a person's   scalp, face, neck, shoulders, or arms:                      (A)  by hand or by using a device, apparatus, or   appliance; and                      (B)  with or without the use of any cosmetic   preparation, antiseptic, tonic, lotion, or cream;                (4)  beautifying a person's face, neck, shoulders, or   arms using a cosmetic preparation, antiseptic, tonic, lotion,   powder, oil, clay, cream, or appliance;                (5)  administering facial treatments;                (6)  removing superfluous hair from a person's body   using depilatories, preparations or chemicals, tweezers, or other   devices or appliances of any kind or description;                (7)  treating a person's nails by:                      (A)  cutting, trimming, polishing, tinting,   coloring, cleansing, manicuring, or pedicuring; or                      (B)  attaching false nails;                (8)  massaging, cleansing, treating, or beautifying a   person's hands or feet; or                (9)  weaving a person's hair by using any method to   attach commercial hair to a person's hair or scalp.          (b)  In addition to the services described by Subsection (a),   the practice of barbering includes performing or offering to   perform for compensation the service of shaving a person's face,   neck, mustache, or beard with a razor of any type.          (c)  In addition to the services described by Subsection (a),   the practice of cosmetology includes performing or offering to   perform for compensation the service of applying semipermanent,   thread-like extensions composed of single fibers to a person's   eyelashes.          (d)  Advertising or representing to the public in any manner   that a person is licensed to perform a barbering or cosmetology   service under this chapter, or that a location or place of business   is an establishment or school, constitutes the practice of   barbering or cosmetology.          (e)  In this section, "safety razor" means a razor that is   fitted with a guard close to the cutting edge of the razor that is   intended to:                (1)  prevent the razor from cutting too deeply; and                (2)  reduce the risk and incidence of accidental cuts.          Sec. 1603.0012.  SERVICES NOT CONSTITUTING BARBERING OR   COSMETOLOGY. Barbering and cosmetology do not include:                (1)  threading, which involves removing unwanted hair   from a person by using a piece of thread that is looped around the   hair and pulled to remove the hair and includes the incidental   trimming of eyebrow hair; or                (2)  servicing a person's wig, toupee, or artificial   hairpiece on a person's head or on a block after the initial retail   sale in any manner described by Section 1603.0011(a)(1).          Sec. 1603.0013.  APPLICATION OF CHAPTER. This chapter does   not apply to a person who:                (1)  does not represent or advertise to the public   directly or indirectly that the person is authorized by the   department to practice barbering or cosmetology and the person is:                      (A)  licensed in this state to practice medicine,   dentistry, podiatry, chiropractic, or nursing and operating within   the scope of the person's license;                      (B)  a commissioned or authorized medical or   surgical officer of the United States armed forces; or                      (C)  an inmate in the institutional division of   the Texas Department of Criminal Justice who performs barbering or   cosmetology during the person's incarceration;                (2)  provides a service in an emergency;                (3)  is in the business of or receives compensation for   makeup applications only;                (4)  provides a cosmetic service as a volunteer or an   employee performing regular duties at a licensed nursing or   convalescent custodial or personal care home to a patient residing   in the home;                (5)  owns, operates, or manages a licensed nursing or   convalescent custodial or personal care home that allows a person   with an operator license to perform cosmetic services for patients   residing in the home on an occasional but not daily basis;                (6)  provides an incidental cosmetic service, or owns,   operates, or manages the location where that service is provided,   if the primary purpose of the service is to enable or assist the   recipient of the service to participate as the subject of:                      (A)  a photographic sitting at a permanent   establishment that charges a fee exclusively for a photographic   sitting;                      (B)  a television appearance; or                      (C)  the filming of a motion picture; or                (7)  performs only natural hair braiding, including   braiding a person's hair, trimming hair extensions only as   applicable to the braiding process, and attaching commercial hair   by braiding and without the use of chemicals or adhesives.          SECTION 3.03.  Section 1603.002, Occupations Code, is   amended to read as follows:          Sec. 1603.002.  REGULATION OF BARBERING AND COSMETOLOGY BY   DEPARTMENT OF LICENSING AND REGULATION. The department shall   administer this chapter. This chapter [and Chapters 1601 and 1602.   A reference in this chapter to the commission's or department's   powers or duties applies only in relation to those chapters, except   that this section] does not limit the department's or commission's   general powers under Chapter 51.          SECTION 3.04.  Subchapter B, Chapter 1603, Occupations Code,   is amended to read as follows:   SUBCHAPTER B. [ADVISORY BOARDS FOR] BARBERING AND COSMETOLOGY   ADVISORY BOARD          Sec. 1603.051.  ADVISORY BOARD; MEMBERSHIP. The Barbering   and Cosmetology Advisory Board consists of nine members appointed   by the presiding officer of the commission, with the commission's   approval, as follows:                (1)  four members who each hold an individual   practitioner license under Subchapter E-1, including:                      (A)  at least one holder of a Class A barber   license; and                      (B)  at least one holder of a cosmetology operator   license;                (2)  two members who each hold an establishment   license;                (3)  two members who each hold a school license; and                (4)  one member who represents the public.          Sec. 1603.052.  DUTIES OF ADVISORY BOARD. (a) The advisory   board [boards established under Chapters 1601 and 1602] shall   advise the commission and the department on:                (1)  education and curricula for applicants;                (2)  the content of examinations;                (3)  proposed rules and standards on technical issues   related to barbering and cosmetology; and                (4)  other issues affecting [administering this   chapter and Chapters 1601 and 1602 regarding] barbering and [or]   cosmetology[, as applicable].          (b)  The advisory board shall respond to questions from the   commission and the department regarding barbering and cosmetology.          Sec. 1603.053.  TERMS; VACANCY. (a) Members of the advisory   board serve staggered six-year terms, with the terms of three   members expiring January 31 of each odd-numbered year.          (b)  If a vacancy occurs during a member's term, the   presiding officer of the commission, with the commission's   approval, shall appoint a replacement to fill the unexpired term.          Sec. 1603.054.  PRESIDING OFFICER. The presiding officer of   the commission shall appoint one of the advisory board members to   serve as the presiding officer of the advisory board for a term of   two years.          SECTION 3.05.  Section 1603.101, Occupations Code, is   amended to read as follows:          Sec. 1603.101.  RULES. The commission shall adopt rules   consistent with this chapter for[:                [(1)]  the administration of this chapter and the   operations of the department in regulating barbering and   cosmetology[; and                [(2)  the administration of Chapters 1601 and 1602].          SECTION 3.06.  Section 1603.103(a), Occupations Code, is   amended to read as follows:          (a)  Until the department determines, by inspection, that   the person has established the school in compliance with this   chapter, [Chapter 1601, or Chapter 1602,] a person may not operate a   school licensed [or permitted] under this chapter[, Chapter 1601,   or Chapter 1602].          SECTION 3.07.  The heading to Section 1603.104, Occupations   Code, is amended to read as follows:          Sec. 1603.104.  [PERIODIC] INSPECTIONS.          SECTION 3.08.  Sections 1603.104(a) and (d), Occupations   Code, are amended to read as follows:          (a)  The department may enter and inspect at any time during   business hours:                (1)  the place of business of any person regulated   under this chapter[, Chapter 1601, or Chapter 1602]; or                (2)  any place in which the department has reasonable   cause to believe that a [certificate,] license[,] or permit holder   is practicing in violation of this chapter[, Chapter 1601, or   Chapter 1602] or in violation of a rule or order of the commission   or executive director.          (d)  An inspector who discovers a violation of this chapter[,   Chapter 1601, or Chapter 1602] or of a rule or order of the   commission or executive director shall[:                [(1)]  provide written notice of the violation to the   license[, certificate,] or permit holder on a form prescribed by   the department[; and                [(2)  file a complaint with the executive director].          SECTION 3.09.  Section 1603.1045, Occupations Code, is   amended to read as follows:          Sec. 1603.1045.  CONTRACT TO PERFORM INSPECTIONS. The   department may contract with a person to perform for the department   inspections of a school or establishment [, shop, or other facility   under this chapter, Chapter 1601, or Chapter 1602].          SECTION 3.10.  Subchapter C, Chapter 1603, Occupations Code,   is amended by adding Section 1603.106 to read as follows:          Sec. 1603.106.  CERTAIN BUILDING AND FACILITY STANDARDS   PROHIBITED. The commission may not establish building or facility   standards for a school that are not related to health and safety,   including a requirement that a building or facility of the school   have a specific:                (1)  square footage of floor space;                (2)  number of chairs; or                (3)  number of sinks.          SECTION 3.11.  Section 1603.151, Occupations Code, is   amended to read as follows:          Sec. 1603.151.  NOTIFICATION OF PUBLIC INTEREST INFORMATION   AND PARTICIPATION. The commission by rule shall establish methods   by which consumers and service recipients are notified of the name,   mailing address, and telephone number of the department for the   purpose of directing complaints to the department regarding   barbering and cosmetology. The department may provide for that   notice:                (1)  on each registration form, application, or written   contract for services of a person regulated under this chapter[,   Chapter 1601, or Chapter 1602];                (2)  on a sign prominently displayed in the place of   business of each person regulated under this chapter[, Chapter   1601, or Chapter 1602]; or                (3)  in a bill for service provided by a person   regulated under this chapter[, Chapter 1601, or Chapter 1602].          SECTION 3.12.  The heading to Subchapter E, Chapter 1603,   Occupations Code, is amended to read as follows:   SUBCHAPTER E. GENERAL [CERTIFICATE,] LICENSE[,] AND PERMIT   PROVISIONS [REQUIREMENTS]          SECTION 3.13.  Subchapter E, Chapter 1603, Occupations Code,   is amended by adding Section 1603.2001 to read as follows:          Sec. 1603.2001.  RULES FOR ISSUANCE OF LICENSE OR PERMIT.   (a) The commission by rule shall establish requirements for the   issuance of:                (1)  a license for an individual practitioner,   establishment, or school; and                (2)  a student permit.          (b)  Requirements established by the commission under   Subsection (a) for an individual practitioner may include   requirements regarding an applicant's:                (1)  minimum age;                (2)  education level; and                (3)  completed hours of instruction.          (c)  In establishing a requirement under this section for the   issuance of a license, the commission shall consider whether the   requirement is the least restrictive requirement possible to ensure   public safety without creating a barrier to entry into the licensed   occupation.          (d)  Requirements established under this section:                (1)  for an individual practitioner specialty license   may not be more stringent than requirements for a Class A barber   license or a cosmetology operator license; and                (2)  for a specialty establishment license may not be   more stringent than requirements for an establishment license.          (e)  The commission shall establish standardized   requirements within license categories.          SECTION 3.14.  Sections 1603.201 and 1603.202, Occupations   Code, are amended to read as follows:          Sec. 1603.201.  APPLICATION FORM. An application for a   [certificate,] license[,] or permit under this chapter must be made   on a form prescribed [and provided] by the department.          Sec. 1603.202.  DUPLICATE [CERTIFICATE,] LICENSE[,] OR   PERMIT. The department shall issue a duplicate [certificate,]   license[,] or permit to an applicant who:                (1)  submits an application for a duplicate   [certificate,] license[,] or permit to the department; and                (2)  pays the required fee.          SECTION 3.15.  Subchapter E, Chapter 1603, Occupations Code,   is amended by adding Section 1603.2025 to read as follows:          Sec. 1603.2025.  TEMPORARY LICENSE. (a)  The department may   issue a temporary license.          (b)  The commission by rule may establish requirements for   the issuance of a temporary license.          (c)  A temporary license expires on the 60th day after the   date the license is issued. A temporary license may not be renewed.          SECTION 3.16.  Sections 1603.203 and 1603.204, Occupations   Code, are amended to read as follows:          Sec. 1603.203.  PROVISIONAL [CERTIFICATE OR] LICENSE. (a)   The department may issue a provisional [certificate or] license to   an applicant currently licensed in another jurisdiction who seeks a   [certificate or] license in this state and who:                (1)  has been licensed in good standing in the   profession for which the person seeks the [certificate or] license   for at least two years in another jurisdiction, including a foreign   country, that has requirements substantially equivalent to the   requirements of this chapter [, Chapter 1601, or Chapter 1602, as   appropriate]; and                (2)  has passed a national or other examination   recognized by the department [commission] relating to the practice   of that profession.          (b)  A provisional [certificate or] license is valid until   the date the department approves or denies the provisional   [certificate or] license holder's application.  The department   shall issue a [certificate or] license to the provisional   [certificate or] license holder if:                (1)  the provisional [certificate or] license holder is   eligible to hold a [certificate or] license under this chapter   [Chapter 1601 or Chapter 1602]; or                (2)  the provisional [certificate or] license holder   passes the part of the examination [under Chapter 1601 or Chapter   1602] that relates to the applicant's knowledge and understanding   of the laws and rules relating to the practice of the profession in   this state and:                      (A)  the department verifies that the provisional   [certificate or] license holder meets the education [academic] and   experience requirements for the [certificate or] license; and                      (B)  the provisional [certificate or] license   holder satisfies any other [certificate or] license requirements.          (c)  The department must approve or deny a provisional   [certificate or] license holder's application for a [certificate   or] license not later than the 180th day after the date the   provisional [certificate or] license is issued. The department may   extend the 180-day period if the results of an examination have not   been received by the department before the end of that period.          Sec. 1603.204.  SUBSTANTIALLY EQUIVALENT [RECIPROCAL   CERTIFICATE,] LICENSE[, OR PERMIT]. (a) A person who holds a   license[, certificate, or permit] to practice barbering or   cosmetology from another state or country that has standards or   work experience requirements that are substantially equivalent to   the requirements of this chapter [, Chapter 1601, or Chapter 1602]   may apply for a license[, certificate, or permit] to perform the   same acts of barbering or cosmetology in this state that the person   practiced in the other state or country.          (b)  The person must:                (1)  submit an application for the license[,   certificate, or permit] to the department; and                (2)  pay fees in an amount prescribed by the   commission, including any applicable license[, certificate, or   permit] fee.          (c)  A person issued a license[, certificate, or permit]   under this section:                (1)  may perform the acts of barbering or cosmetology   authorized by [stated on] the license[, certificate, or permit];   and                (2)  is subject to the renewal procedures and fees   provided in this chapter [, Chapter 1601, or Chapter 1602] for the   performance of those acts of barbering or cosmetology.          SECTION 3.17.  Sections 1603.208(a)(2) and (3), Occupations   Code, are amended to read as follows:                (2)  "Digitally prearranged remote service" means a   barbering or cosmetology service performed for compensation by a   person holding a license[, certificate of registration, or permit]   under Subchapter E-1 [Chapter 1601 or 1602 or this chapter] that is:                      (A)  prearranged through a digital network; and                      (B)  performed at a location other than an   establishment [a place of business that is] licensed [or permitted]   under Subchapter E-2 [Chapter 1601 or 1602 or this chapter].                (3)  "Remote service business" means a corporation,   partnership, sole proprietorship, or other entity that, for   compensation, enables a client to schedule a digitally prearranged   remote service with a person holding a license[, certificate of   registration, or permit] under Subchapter E-1 [Chapter 1601 or 1602   or this chapter].          SECTION 3.18.  Sections 1603.208(c), (d), (f), (g), and (i),   Occupations Code, are amended to read as follows:          (c)  Sections 1603.2108 and 1603.2109 [1601.453, 1601.455,   1602.251(c), and 1602.407] do not apply to a digitally prearranged   remote service scheduled through a remote service business.          (d)  A person who holds a license[, certificate of   registration, or permit] to practice barbering or cosmetology and   who performs a digitally prearranged remote service shall:                (1)  comply with this section and the rules adopted   under this section; and                (2)  practice within the scope of the person's   license[, certificate of registration, or permit].          (f)  Before a person licensed[, registered, or permitted] to   practice barbering or cosmetology performs a digitally prearranged   remote service for a client requesting the service, a remote   service business must [shall] provide through the entity's digital   network:                (1)  the following information regarding the person who   will perform the service:                      (A)  the person's first and last name;                      (B)  the [number of the] person's license number[,   certificate of registration, or permit, as applicable]; and                      (C)  a photograph of the person;                (2)  the following information regarding the business:                      (A)  Internet website address; and                      (B)  telephone number; and                (3)  the department's Internet website address and   telephone number and notice that the client may contact the   department to file a complaint against the business or person.          (g)  Within a reasonable time after completion of a digitally   prearranged remote service, the remote service business shall issue   to the client who requested the service a receipt that includes:                (1)  the date the service was provided;                (2)  a description of the service;                (3)  the first and last name of the person who performed   the service;                (4)  the [number of the] person's license number[,   certificate of registration, or permit, as applicable];                (5)  the following information regarding the business:                      (A)  Internet website address; and                      (B)  telephone number; and                (6)  the department's Internet website address and   telephone number and notice that the client may contact the   department to file a complaint against the business or person.          (i)  A remote service business shall terminate a person's   access to the business's digital network if the business or   department determines the person violated:                (1)  this chapter; or                (2)  a rule adopted under this chapter[;                [(3)  Chapter 1601 or 1602; or                [(4)  a rule adopted under Chapter 1601 or 1602].          SECTION 3.19.  Subchapter E, Chapter 1603, Occupations Code,   is amended by adding Section 1603.209 to read as follows:          Sec. 1603.209.  INFECTIOUS AND CONTAGIOUS DISEASES. (a) A   person holding a license or permit issued under Subchapter E-1 may   not perform any practice of barbering or cosmetology if the person   knows the person is suffering from an infectious or contagious   disease for which the person is not entitled to protection under the   federal Americans with Disabilities Act of 1990 (42 U.S.C. Section   12101 et seq.).          (b)  A person holding an establishment or school license may   not employ a person to perform any practice of barbering or   cosmetology or to instruct in the practice of barbering or   cosmetology if the license holder knows that the person is   suffering from an infectious or contagious disease for which the   person is not entitled to protection under the federal Americans   with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.).          SECTION 3.20.  Chapter 1603, Occupations Code, is amended by   adding Subchapters E-1, E-2, and E-3 to read as follows:   SUBCHAPTER E-1. INDIVIDUAL PRACTITIONER LICENSES; STUDENT PERMIT;   PRACTICE          Sec. 1603.2101.  INDIVIDUAL PRACTITIONER LICENSE OR STUDENT   PERMIT REQUIRED; USE OF CERTAIN TERMS WITHOUT LICENSE PROHIBITED.   (a)  A person may not perform or offer or attempt to perform any act   of barbering or cosmetology unless the person holds a license or   permit issued under this subchapter to perform that act.          (b)  Unless the person holds an appropriate license issued   under this subchapter, a person may not directly or indirectly use   or cause to be used as a professional or business identification,   title, name, representation, asset, or means of advantage or   benefit:                (1)  the term "barber" or "barbering";                (2)  the term "cosmetologist" or "cosmetology"; or                (3)  any combination, variation, or abbreviation of the   terms listed in Subdivisions (1) and (2).          Sec. 1603.2102.  ISSUANCE OF INDIVIDUAL PRACTITIONER   LICENSE. The department shall issue an individual practitioner   license to an applicant who:                (1)  meets the applicable eligibility requirements;                (2)  passes the applicable examination;                (3)  pays the required fee;                (4)  has not committed an act that constitutes a ground   for denial of the license; and                (5)  submits an application on a form prescribed by the   department.          Sec. 1603.2103.  INDIVIDUAL PRACTITIONER LICENSES. (a)  A   person holding:                (1)  a Class A barber license may perform any barbering   service;                (2)  a cosmetology operator license may perform any   cosmetology service;                (3)  a manicurist license may perform any service   described by Section 1603.0011(a)(7) or (8);                (4)  an esthetician license may perform any service   described by Section 1603.0011(a)(3), (4), (5), or (6) or (c);                (5)  a manicurist/esthetician license may perform any   service described by Section 1603.0011(a)(3), (4), (5), (6), (7),   or (8) or (c);                (6)  a hair weaving specialist license may perform any   service described by Section 1603.0011(a)(9);                (7)  a hair weaving specialist/esthetician license may   perform any service described by Section 1603.0011(a)(3), (4), (5),   (6), or (9) or (c); and                (8)  an eyelash extension specialist license may   perform any service described by Section 1603.0011(c).          (b)  The commission by rule shall provide for the issuance   of:                (1)  a Class A barber license to a person who holds a   cosmetology operator license; and                (2)  a cosmetology operator license to a person who   holds a Class A barber license.          Sec. 1603.2104.  WAIVER OF CERTAIN LICENSE REQUIREMENTS.   (a) The department may waive any requirement for a license issued   under this subchapter for an applicant holding a license from   another jurisdiction that has license requirements substantially   equivalent to those of this state.          (b)  The department shall issue a license to an applicant   under Subsection (a) if the applicant:                (1)  submits an application on a form prescribed by the   department;                (2)  pays the application fee; and                (3)  provides proof that the applicant holds a current   license to engage in the same or a similar activity issued by   another jurisdiction that has license requirements substantially   equivalent to those of this state.          (c)  The department may not require a personal interview as   part of the application process under this section.          (d)  A license issued under this section may be renewed as   provided by Subchapter G.          Sec. 1603.2105.  STUDENT PERMIT. (a) A student enrolled in   a school licensed under Subchapter E-3 must hold a permit stating   the student's name and the name of the school.          (b)  The department shall issue a student permit to an   applicant who submits an application to the department for a   student permit accompanied by the required fee.          (c)  A separate application is required for each enrollment.   The application fee applies only to the first enrollment. The   department may not charge the application fee for any later   enrollment.          Sec. 1603.2106.  TRANSFER OF LICENSE OR PERMIT PROHIBITED.   A license or permit issued under this subchapter is not   transferable.          Sec. 1603.2107.  DISPLAY OF LICENSE OR PERMIT. (a) The   holder of a license issued under this subchapter shall:                (1)  display the original license and an attached   photograph of the license holder in a conspicuous place near the   license holder's work chair in the establishment in which the   holder is working; or                (2)  make available at the reception desk of the   establishment in which the holder is working, in the manner   prescribed by the department:                      (A)  the original license and an attached   photograph of the license holder; or                      (B)  a digital image of the license and photograph   of the license holder.          (b)  The holder of a student permit issued under this   subchapter shall display the permit in a reasonable manner at the   school in which the permit holder is enrolled.          Sec. 1603.2108.  LOCATION OF PRACTICE. A person holding a   license or permit issued under this subchapter may practice   barbering or cosmetology only at a licensed establishment or   school.          Sec. 1603.2109.  SERVICE AT UNLICENSED LOCATION. (a) In   this section, "licensed facility" means:                (1)  an establishment licensed under Subchapter E-2; or                (2)  a school licensed under Subchapter E-3.          (b)  A person holding a license under this subchapter may   perform a service within the scope of the license at a location   other than a licensed facility for a client:                (1)  who, because of illness or physical or mental   incapacitation, is unable to receive the service at a licensed   facility; or                (2)  in preparation for and at the location of a special   event, including a wedding.          (c)  An appointment for a service performed under this   section must be made through a licensed facility.   SUBCHAPTER E-2. ESTABLISHMENT LICENSES; OPERATION          Sec. 1603.2201.  LICENSE REQUIRED. (a) A person may not   own, operate, or manage an establishment in which an act of   barbering or cosmetology is practiced unless the person holds a   license issued under this subchapter to operate the establishment.          (b)  A person may not lease space on the premises of a   licensed establishment to engage in the practice of barbering or   cosmetology as an independent contractor unless the person holds a   license issued under Subchapter E-1.          Sec. 1603.2202.  ISSUANCE OF LICENSE. The department shall   issue the applicable establishment license under this subchapter to   an applicant if:                (1)  the applicant:                      (A)  owns or rents the establishment;                      (B)  verifies the application;                      (C)  complies with the application requirements   of this chapter;                      (D)  pays the required inspection and license   fees; and                      (E)  has not committed an act that constitutes a   ground for denial of a license; and                (2)  the establishment:                      (A)  meets the commission's minimum health   standards for an establishment; and                      (B)  complies with all commission rules.          Sec. 1603.2203.  ESTABLISHMENT LICENSES. (a)  An   establishment licensed as:                (1)  an establishment may provide any barbering or   cosmetology service;                (2)  a manicurist specialty establishment may provide   any service described by Section 1603.0011(a)(7) or (8);                (3)  an esthetician specialty establishment may   provide any service described by Section 1603.0011(a)(3), (4), (5),   or (6) or (c);                (4)  a manicurist/esthetician specialty establishment   may provide any service described by Section 1603.0011(a)(3), (4),   (5), (6), (7), or (8) or (c);                (5)  a hair weaving specialty establishment may provide   any service described by Section 1603.0011(a)(9);                (6)  an eyelash extension specialty establishment may   provide any service described by Section 1603.0011(c);                (7)  a mini-establishment may provide any barbering or   cosmetology service; and                (8)  a mobile establishment may provide any barbering   or cosmetology service.          (b)  In this section:                (1)  "Mini-establishment" includes a room or suite of   rooms that is one of a number of connected establishments in a   single premises that open onto a common hallway or another   configuration of operations as authorized by the department in   which a person practices under a license issued under Subchapter   E-1.                (2)  "Mobile establishment" means a facility that is   readily movable and where barbering, cosmetology, or both are   practiced other than at a fixed location.          Sec. 1603.2204.  TRANSFER OF LICENSE PROHIBITED. A license   issued under this subchapter is not transferable.          Sec. 1603.2205.  USE OF ESTABLISHMENT AS SLEEPING QUARTERS   PROHIBITED. (a) An owner or manager of a licensed establishment   may not permit a person to sleep in a room used as part of the   establishment.          (b)  A person may not perform an act for which a license is   required in a room in an establishment that is used as sleeping   quarters.   SUBCHAPTER E-3. SCHOOL LICENSES; OPERATION          Sec. 1603.2301.  LICENSE REQUIRED. A person may not operate   a school for instruction in the practice of barbering or   cosmetology unless the person holds a license issued under this   subchapter to operate the school.          Sec. 1603.2302.  ISSUANCE OF LICENSE. The department shall   issue a license under this subchapter to an applicant who, as   applicable:                (1)  submits an application on a form prescribed by the   department;                (2)  pays the required fee;                (3)  provides to the department adequate proof of   financial responsibility;                (4)  meets the health and safety standards established   by the commission; and                (5)  satisfies any other requirements of this chapter   or commission rule.          Sec. 1603.2303.  SCHOOL LICENSES; INSTRUCTORS; ENFORCEMENT.   (a) The holder of a public secondary school license, public   postsecondary school license, or private postsecondary school   license:                (1)  may provide instruction in the barbering or   cosmetology services for which the license holder has been approved   by the department; and                (2)  may only employ to provide the instruction   described by Subdivision (1) a person who holds a license issued   under Subchapter E-1 to perform the acts of barbering or   cosmetology for which the person will provide instruction.          (b)  The department may take any disciplinary or other   enforcement action against a person who violates Subsection (a)(2).          Sec. 1603.2304.  CHANGE OF SCHOOL OWNERSHIP OR LOCATION.   (a) If a licensed school changes ownership:                (1)  the outgoing owner shall notify the department of   the change not later than the 10th day before the date the change   takes effect; and                (2)  the new owner shall obtain a license under this   subchapter in accordance with commission rule.          (b)  A school may not change the location of the school   unless the school obtains approval from the department before the   change by showing that the proposed location meets the requirements   of this chapter and commission rules.          Sec. 1603.2305.  SIGNS REQUIRED. The holder of a school   license shall place a sign on the front outside portion of the   school's building in a prominent place that reads "SCHOOL--STUDENT   PRACTITIONERS" in:                (1)  at least 10-inch block letters; or                (2)  a manner prescribed by the department.          Sec. 1603.2306.  INFORMATION PROVIDED TO PROSPECTIVE   STUDENT. The holder of a school license shall provide to each   prospective student, as applicable:                (1)  a course outline;                (2)  a schedule of the tuition and other fees assessed;                (3)  the school's refund policy required under Section   1603.3602;                (4)  the school's grading policy and rules relating to   incomplete grades;                (5)  the school's rules of operation and conduct,   including rules relating to absences;                (6)  the department's name, mailing address, and   telephone number for the purpose of directing complaints to the   department; and                (7)  the current job placement rates and employment   rates of students who complete a course of instruction.          Sec. 1603.2307.  COURSE LENGTH AND CURRICULUM CONTENT. (a)   A school shall design course length and curriculum content to   reasonably ensure that a student develops the job skills and   knowledge necessary for employment.          (b)  A school must submit to the department for approval the   course length and curriculum content for each course offered by the   school. The school may not implement a course length and curriculum   content without the approval of the department.          (c)  Before issuing or renewing a license under this   subchapter, the department must require the school to account for   each course length and curriculum content.          Sec. 1603.2308.  REQUIRED COURSES. (a) A school shall   instruct students in the theory and practice of subjects necessary   and beneficial to the practice of barbering and cosmetology.          (b)  The commission by rule shall establish the subjects in   which students shall receive instruction.          (c)  A school may not increase, decrease, or withhold for any   reason the number of hours earned by a student.          Sec. 1603.2309.  DAILY ATTENDANCE RECORDS. (a) A school   shall maintain an attendance record showing the students' daily   attendance.          (b)  The department may inspect a school's attendance   records at any time.          Sec. 1603.2310.  INSTRUCTOR-TO-STUDENT RATIO. A licensed   school must have at least one instructor for every 25 students on   the school's premises.          Sec. 1603.2311.  REPORTS TO DEPARTMENT. (a) A licensed   school shall maintain a monthly progress report regarding each   student attending the school. The report must certify the daily   attendance record of each student and the number of hours earned by   each student during the previous month.          (b)  On a student's completion of a prescribed course of   instruction, the school shall notify the department that the   student has completed the required number of hours and is eligible   to take the appropriate examination.          (c)  The holder of a school license shall provide to the   department on request:                (1)  the current course completion rates of students   who attend a course of instruction offered by the school; and                (2)  job placement rates and employment rates of   students who complete a course of instruction.          Sec. 1603.2312.  ADDITIONAL DUTIES OF LICENSE HOLDER. The   holder of a school license shall:                (1)  maintain a sanitary premises;                (2)  establish regular class and instruction hours and   grades;                (3)  hold examinations before issuing diplomas; and                (4)  maintain a copy of the school's curriculum in a   conspicuous place and verify that the curriculum is being followed.          Sec. 1603.2313.  TRANSFER OF HOURS OF INSTRUCTION. (a) A   student at a licensed school may transfer completed hours of   instruction to another licensed school in this state.          (b)  In order for the hours of instruction to be transferred,   a transcript showing the completed courses and number of hours   certified by the school in which the instruction was given must be   submitted to the department.          (c)  In evaluating a student's transcript, the department   shall determine whether the agreed tuition has been paid. If the   tuition has not been paid, the department shall notify the student   that the student's transcript cannot be certified to the school to   which the student seeks a transfer until proof is provided that the   tuition has been paid.          (d)  On evaluation and approval, the department shall   certify in writing to the student and to the school to which the   student seeks a transfer that:                (1)  the stated courses and hours have been   successfully completed; and                (2)  the student is not required to repeat the hours of   instruction.          Sec. 1603.2314.  IDENTIFICATION OF AND WORK PERFORMED BY   STUDENT. (a) Each licensed school shall maintain in a conspicuous   place a list of the names and identifying pictures of the students   who are enrolled in the school's courses.          (b)  A school may not receive compensation for work done by a   student unless the student has completed 10 percent of the required   number of hours for a license under Subchapter E-1.          (c)  If a school violates this section, the license of the   school may be revoked or suspended.          SECTION 3.21.  Section 1603.252(b), Occupations Code, is   amended to read as follows:          (b)  The executive director shall determine uniform   standards for acceptable performance on an examination for a   license under Subchapter E-1 [or certificate under Chapter 1601 and   for a license or certificate under Chapter 1602].          SECTION 3.22.  Sections 1603.253 and 1603.255, Occupations   Code, are amended to read as follows:          Sec. 1603.253.  WRITTEN EXAMINATION. The department    [commission] shall select an examination for each written   examination required under this chapter[, Chapter 1601, or Chapter   1602].  The written examination must be:                (1)  validated by an independent testing professional;   or                (2)  purchased from a national testing service.          Sec. 1603.255.  EARLY EXAMINATION.  The commission by rule    [department] may allow for the early written examination of a   student [who has completed the following number of hours of   instruction in a department-approved training program:                [(1)  1,000 hours for a student seeking a Class A barber   certificate in a private barber school;                [(2)  900 hours for a student seeking an operator   license in a private cosmetology school; or                [(3)  900 hours for a student seeking a Class A barber   certificate or operator license in a publicly funded barber or   cosmetology school].          SECTION 3.23.  Sections 1603.256(a) and (c), Occupations   Code, are amended to read as follows:          (a)  The commission may require a practical examination as it   considers necessary for a license [or certificate] issued under   Subchapter E-1 [Chapter 1601 or 1602].          (c)  The following persons may administer a practical   examination [required under this subchapter]:                (1)  the department;                (2)  a person with whom the department contracts under   Section 1603.252;                (3)  a licensed [barber] school[, private beauty   culture school, or a public secondary or postsecondary beauty   culture school] that is approved by the department to administer   the examination under Section 1603.252; or                (4)  the Windham School District.          SECTION 3.24.  Subchapter G, Chapter 1603, Occupations Code,   is amended to read as follows:   SUBCHAPTER G. [CERTIFICATE,] LICENSE[, AND PERMIT] RENEWAL          Sec. 1603.3001.  LICENSE TERMS. (a) Except as provided by   Subsection (b), a license other than a temporary license expires on   the second anniversary of the date the license is issued.          (b)  A school license expires on the first anniversary of the   date the license is issued.          Sec. 1603.3002.  RENEWAL RULES. (a) The commission by rule   may establish requirements for the renewal of a license issued   under this chapter, including continuing education requirements.          (b)  The commission may establish separate requirements for:                (1)  the initial renewal of a license; and                (2)  subsequent renewals of a license.          (c)  Before establishing continuing education requirements   under this section, the commission must consider the potential   impact of continuing education with respect to:                (1)  identifying and assisting trafficked persons; and                (2)  providing license holders with opportunities to   acquire new skills.          Sec. 1603.3003.  ISSUANCE OF RENEWAL LICENSE. The   department shall issue a renewal license on receipt of:                (1)  a renewal application in the form prescribed by   the department; and                (2)  any renewal fee.          Sec. 1603.3004.  RENEWAL WHILE IN ARMED FORCES. (a) The   department may not require the holder of a license issued under   Subchapter E-1 who is serving on active duty in the United States   armed forces to renew the person's license.          (b)  The department shall issue a renewal license on   application and payment of the required renewal fee not later than   the 90th day after the date the person is released or discharged   from active duty in the United States armed forces.          Sec. 1603.301.  DENIAL OF RENEWAL DUE TO ADMINISTRATIVE   PENALTY. The department may deny a person's request to renew a   [certificate,] license[, or permit] issued under this chapter[,   Chapter 1601, or Chapter 1602] if the person has not paid an   administrative penalty imposed under Subchapter F, Chapter   51.  This section does not apply if:                (1)  the person's time to pay or request a hearing has   not expired under Section 51.304;                (2)  the person has requested a hearing under Section   51.304, but the person's time to pay has not expired under Section   51.307; or                (3)  the penalty is stayed.          SECTION 3.25.  The heading to Subchapter H, Chapter 1603,   Occupations Code, is amended to read as follows:   SUBCHAPTER H. PRACTICE PROVISIONS APPLICABLE TO MORE THAN ONE   LICENSE TYPE [CHAPTERS 1601 AND 1602]          SECTION 3.26.  Section 1603.351, Occupations Code, is   amended to read as follows:          Sec. 1603.351.  MINIMUM CURRICULUM FOR SCHOOLS; DISTANCE   EDUCATION. (a)  The commission shall prescribe the minimum   curriculum, including the subjects and the number of hours in each   subject, taught by a licensed school [licensed under this chapter,   Chapter 1601, or Chapter 1602].          (a-1)  Notwithstanding any other law, the commission may   adopt rules to:                (1)  authorize a licensed school [licensed under this   chapter, Chapter 1601, or Chapter 1602] to account for any hours of   instruction completed under this chapter [those chapters] on the   basis of clock hours or credit hours; and                (2)  establish standards for determining the   equivalency and conversion of clock hours to credit hours and   credit hours to clock hours.          (b)  The commission may adopt rules allowing distance   education only for the theory portion of the curriculum taught by a   licensed school [licensed under this chapter, Chapter 1601, or   Chapter 1602].          (c)  Distance education does not satisfy the requirements of   the practical portion of the curriculum taught by a licensed school   [licensed under this chapter, Chapter 1601, or Chapter 1602].          SECTION 3.27.  Sections 1603.352(a) and (b), Occupations   Code, are amended to read as follows:          (a)  A person who holds a license[, certificate,] or permit   issued under this chapter[, Chapter 1601, or Chapter 1602] and who   performs a [barbering service described by Section 1601.002(1)(E)   or (F) or a cosmetology] service described by Section   1603.0011(a)(7) or (8) [1602.002(a)(8) or (9)] shall, before   performing the service, clean, disinfect, and sterilize with an   autoclave or dry heat sterilizer or sanitize with an ultraviolet   sanitizer, in accordance with the sterilizer or sanitizer   manufacturer's instructions, each metal instrument, including   metal nail clippers, cuticle pushers, cuticle nippers, and other   metal instruments, used to perform the service.          (b)  The owner or manager of a licensed establishment or   [barber shop, barber] school[, beauty shop, specialty shop, beauty   culture school, or other facility licensed under this chapter,   Chapter 1601, or Chapter 1602,] is responsible for providing an   autoclave, a dry heat sterilizer, or an ultraviolet sanitizer for   use in the establishment [shop] or school as required by Subsection   (a).          SECTION 3.28.  Subchapter H, Chapter 1603, Occupations Code,   is amended by adding Sections 1603.353, 1603.354, 1603.355,   1603.356, 1603.357, and 1603.358 to read as follows:          Sec. 1603.353.  EMPLOYMENT OF LICENSE HOLDER. (a) A   licensed school may not employ a person holding a license issued   under Subchapter E-1 solely to perform the practices of barbering   or cosmetology for which the person is licensed.          (b)  A person holding a license for an establishment may not   employ or lease to a person to practice barbering or cosmetology at   the establishment unless the person holds a license issued under   Subchapter E-1.          Sec. 1603.354.  NECESSARY EQUIPMENT. The owner, operator,   or manager of a licensed establishment or school shall equip the   establishment or school with the facilities, supplies, appliances,   furnishings, and materials necessary to enable a person employed on   the premises to comply with this chapter.          Sec. 1603.355.  DISPLAY OF LICENSE. A licensed school or   establishment shall display the license in a conspicuous place in   the school or establishment for which the license is issued.          Sec. 1603.356.  DISPLAY OF HUMAN TRAFFICKING INFORMATION.   (a) A licensed school or establishment shall display a sign   approved by or acceptable to the commission or the department   concerning services and assistance available to victims of human   trafficking.          (b)  The sign required by this section must:                (1)  be in English, Spanish, Vietnamese, and any other   language required by commission rule; and                (2)  include a toll-free telephone number of a   nationally recognized information and referral hotline for victims   of human trafficking.          (c)  The commission by rule shall establish requirements   regarding the posting of signs under this section.          Sec. 1603.357.  DISPLAY OF SANITATION RULES. A licensed   school or establishment shall display a copy of the commission's   sanitation rules.          Sec. 1603.358.  OPERATION OF ESTABLISHMENT AND SCHOOL ON   SINGLE PREMISES. A person may not operate an establishment on the   same premises as a school unless the facilities are separated by   walls of permanent construction without an opening between the   facilities.          SECTION 3.29.  Chapter 1603, Occupations Code, is amended by   adding Subchapter H-1 to read as follows:   SUBCHAPTER H-1. FINANCIAL PROVISIONS APPLICABLE TO PRIVATE   POSTSECONDARY SCHOOLS          Sec. 1603.3601.  CANCELLATION AND SETTLEMENT POLICY. The   holder of a private postsecondary school license shall maintain a   cancellation and settlement policy that provides a full refund of   money paid by a student if the student:                (1)  cancels the enrollment agreement or contract not   later than midnight of the third day after the date the agreement or   contract is signed by the student, excluding Saturdays, Sundays,   and legal holidays; or                (2)  entered into the enrollment agreement or contract   because of a misrepresentation made:                      (A)  in the advertising or promotional materials   of the school; or                      (B)  by an owner or representative of the school.          Sec. 1603.3602.  REFUND POLICY. (a) The holder of a private   postsecondary school license shall maintain a refund policy to   provide for the refund of any unused parts of tuition, fees, and   other charges paid by a student who, at the expiration of the   cancellation period established under Section 1603.3601:                (1)  fails to enter the course of training;                (2)  withdraws from the course of training; or                (3)  is terminated from the course of training before   completion of the course.          (b)  The refund policy must provide that:                (1)  the refund is based on the period of the student's   enrollment, computed on the basis of course time expressed in   scheduled hours, as specified by an enrollment agreement, contract,   or other document acceptable to the department;                (2)  the effective date of the termination for refund   purposes is the earliest of:                      (A)  the last date of attendance, if the student   is terminated by the school;                      (B)  the date the license holder receives the   student's written notice of withdrawal; or                      (C)  10 school days after the last date of   attendance; and                (3)  the school may retain not more than $100 if:                      (A)  tuition is collected before the course of   training begins; and                      (B)  the student does not begin the course of   training before the cancellation period established under Section   1603.3601 expires.          Sec. 1603.3603.  WITHDRAWAL OR TERMINATION OF STUDENT. (a)   If a student at a private postsecondary school begins a course of   training that is scheduled to run not more than 12 months and,   during the last 50 percent of the course, withdraws from the course   or is terminated by the school, the school:                (1)  may retain 100 percent of the tuition and fees paid   by the student; and                (2)  is not obligated to refund any additional   outstanding tuition.          (b)  If a student at a private postsecondary school begins a   course of training that is scheduled to run not more than 12 months   and, before the last 50 percent of the course, withdraws from the   course or is terminated by the school, the school shall refund:                (1)  90 percent of any outstanding tuition for a   withdrawal or termination that occurs during the first week or   first 10 percent of the course, whichever period is shorter;                (2)  80 percent of any outstanding tuition for a   withdrawal or termination that occurs after the first week or first   10 percent of the course, whichever period is shorter, but within   the first three weeks of the course;                (3)  75 percent of any outstanding tuition for a   withdrawal or termination that occurs after the first three weeks   of the course but not later than the completion of the first 25   percent of the course; and                (4)  50 percent of any outstanding tuition for a   withdrawal or termination that occurs not later than the completion   of the first 50 percent of the course.          (c)  A refund owed under this section must be paid not later   than the 30th day after the date the student becomes eligible for   the refund.          Sec. 1603.3604.  INTEREST ON REFUND. (a) If tuition is not   refunded within the period required by Section 1603.3603, the   private postsecondary school shall pay interest on the amount of   the refund for the period beginning the first day after the date the   refund period expires and ending the day preceding the date the   refund is made.          (b)  If tuition is refunded to a lending institution, the   interest shall be paid to that institution and applied against the   student's loan.          (c)  The commissioner of education shall annually set the   interest rate at a rate sufficient to deter a school from retaining   money paid by a student.          (d)  The department may exempt a school from the payment of   interest if the school makes a good faith effort to refund the   tuition but is unable to locate the student. The school shall   provide to the department on request documentation of the effort to   locate the student.          Sec. 1603.3605.  REENTRY OF STUDENT AFTER WITHDRAWAL. If a   student voluntarily withdraws or is terminated after completing 50   percent of the course at a private postsecondary school, the school   shall allow the student to reenter at any time during the 48-month   period following the date of withdrawal or termination unless the   student presents a danger to the other students or staff of the   school.          Sec. 1603.3606.  EFFECT OF STUDENT WITHDRAWAL. (a) A   private postsecondary school shall record a grade of incomplete for   a student who withdraws but is not entitled to a refund under   Section 1603.3603 if the student:                (1)  requests the grade at the time the student   withdraws; and                (2)  withdraws for an appropriate reason unrelated to   the student's academic status.          (b)  A student who receives a grade of incomplete may   reenroll in the program during the 48-month period following the   date the student withdraws and complete the subjects without   payment of additional tuition.          Sec. 1603.3607.  EFFECT OF PRIVATE POSTSECONDARY SCHOOL   CLOSURE. (a) If a private postsecondary school closes, the   department shall attempt to arrange for students enrolled in the   closed school to attend another private postsecondary school.          (b)  If a student from a closed school is placed in another   private postsecondary school, the expense incurred by the school in   providing training directly related to educating the student,   including the applicable tuition for the period for which the   student paid tuition, shall be paid from the barbering and   cosmetology school tuition protection account.          (c)  If a student from a closed private postsecondary school   cannot be placed in another private postsecondary school, the   student's tuition and fees shall be refunded as provided by Section   1603.3602. If a student from a closed private postsecondary school   does not accept a place that is available and reasonable in another   private postsecondary school, the student's tuition and fees shall   be refunded as provided by Section 1603.3603. A refund under this   subsection shall be paid from the barbering and cosmetology school   tuition protection account. The amount of the refund may not exceed   $35,000.          (d)  If another private postsecondary school assumes   responsibility for the closed school's students and there are no   significant changes in the quality of the training, the student   from the closed school is not entitled to a refund under Subsection   (c).          Sec. 1603.3608.  BARBERING AND COSMETOLOGY SCHOOL TUITION   PROTECTION ACCOUNT. (a) If on January 1 of any year the amount in   the barbering and cosmetology school tuition protection account is   less than $225,000, the department shall collect a fee from each   private postsecondary school during that year by applying a   percentage to the school's renewal fee at a rate that will bring the   balance of the account to $225,000.          (b)  The department shall administer claims made against the   account.          (c)  The comptroller shall invest the account in the same   manner as other state funds.          (d)  Sufficient money from the account shall be appropriated   to the department for the purpose described by Section 1603.3607.          (e)  Attorney's fees, court costs, or damages may not be paid   from the account.          Sec. 1603.3609.  RULES. The commission by rule may:                (1)  adjust any tuition reimbursement limit   established under this subchapter; and                (2)  adopt procedures regarding the collection of fees   from private postsecondary schools under Section 1603.3608.          SECTION 3.30.  Section 1603.401, Occupations Code, is   amended to read as follows:          Sec. 1603.401.  DENIAL, SUSPENSION, OR REVOCATION. The   department may [shall] deny an application for issuance or renewal   of, or may [shall] suspend or revoke, a [certificate,] license[,]   or permit if the applicant or person holding the [certificate,]   license[,] or permit:                (1)  engages in gross malpractice;                (2)  knowingly continues to practice while having an   infectious or contagious disease;                (3)  knowingly makes a false or deceptive statement in   advertising;                (4)  advertises, practices, or attempts to practice   under another person's name or trade name;                (5)  engages in fraud or deceit in obtaining a   [certificate,] license[,] or permit; or                (6)  engages in an act that violates this chapter or [,]   Chapter 51[, Chapter 1601, or Chapter 1602] or a rule or order   adopted or issued under this chapter or Chapter 51 [those   chapters].          SECTION 3.31.  The heading to Subchapter J, Chapter 1603,   Occupations Code, is amended to read as follows:   SUBCHAPTER J. OTHER [PENALTIES AND] ENFORCEMENT PROVISIONS          SECTION 3.32.  Sections 1603.453 and 1603.454, Occupations   Code, are amended to read as follows:          Sec. 1603.453.  APPEAL BOND NOT REQUIRED. The department is   not required to give an appeal bond in a cause arising under this   chapter[, Chapter 1601, or Chapter 1602].          Sec. 1603.454.  ENFORCEMENT BY ATTORNEY GENERAL. The   attorney general shall represent the department in an action to   enforce this chapter[, Chapter 1601, or Chapter 1602].          SECTION 3.33.  The following provisions of the Occupations   Code are repealed:                (1)  Chapters 1601 and 1602;                (2)  Sections 1603.104(b), (c), and (c-1);                (3)  Section 1603.205;                (4)  Section 1603.206;                (5)  Section 1603.207;                (6)  Section 1603.254;                (7)  Section 1603.451;                (8)  Section 1603.452;                (9)  Section 1603.455; and                (10)  Section 1603.456.          SECTION 3.34.  (a) To ensure that licensed schools offering   instruction in barbering and cosmetology maintain accreditation   and that students of those schools continue to qualify for federal   aid, the Texas Commission of Licensing and Regulation shall, as   soon as practicable after September 1, 2021, adopt any rules   necessary for the orderly implementation of the changes in law made   by this article to the licensing system and curricula requirements   and standards for schools offering instruction in barbering and   cosmetology.          (b)  Not later than September 1, 2023:                (1)  the Texas Commission of Licensing and Regulation   shall adopt any additional rules necessary to implement the changes   in law made by this article; and                (2)  the Texas Department of Licensing and Regulation   shall begin to issue and renew licenses and permits under   Subchapters E-1, E-2, and E-3, Chapter 1603, Occupations Code, as   added by this article.          SECTION 3.35.  Notwithstanding the repeal by this article of   Chapters 1601 and 1602, and Sections 1603.205, 1603.206, and   1603.207, Occupations Code, the Texas Department of Licensing and   Regulation may continue to issue until September 1, 2023, a   certificate, license, or permit under those provisions as they   existed immediately before September 1, 2021, and those provisions   are continued in effect for that purpose.          SECTION 3.36.  Notwithstanding the repeal by this article of   Chapters 1601 and 1602, Occupations Code, until the Texas   Commission of Licensing and Regulation adopts rules regarding   written and practical examination requirements for the issuance of   licenses under Chapter 1603, Occupations Code, as amended by this   article, the Texas Department of Licensing and Regulation shall   continue to operate under the requirements regarding written and   practical examinations in former Chapters 1601 and 1602,   Occupations Code, as those chapters were in effect immediately   before September 1, 2021, and those provisions are continued in   effect for that purpose.          SECTION 3.37.  (a) A certificate, license, or permit issued   under former Chapter 1601 or 1602, Occupations Code, or under   former Section 1603.205, 1603.206, or 1603.207, Occupations Code,   before September 1, 2023, continues to be valid until the   certificate, license, or permit expires, and those chapters and   sections are continued in effect for that purpose.          (b)  A person who on September 1, 2021, holds a certificate,   license, or permit issued under former Chapter 1601 or 1602,   Occupations Code, or under former Section 1603.205, 1603.206, or   1603.207, Occupations Code, is entitled on expiration of that   certificate, license, or permit to issuance of a comparable license   or permit under the applicable provision of Chapter 1603,   Occupations Code, as amended by this article, if the person   otherwise meets the requirements for the license or permit.          (c)  A person who on September 1, 2021, holds an instructor   license issued under former Chapter 1601 or 1602, Occupations Code,   is entitled on expiration of that license to issuance of a license   under the applicable provision of Chapter 1603, Occupations Code,   as amended by this article, that is comparable to the individual   practitioner license required for the issuance of the instructor   license if the person otherwise meets the requirements for the   license under Chapter 1603.          SECTION 3.38.  Notwithstanding any other law, on September   1, 2021, a person holding a permit under former Subchapter G,   Chapter 1601, Occupations Code, a facility license under former   Subchapter G, Chapter 1602, Occupations Code, or a license or   permit under former Section 1603.205, 1603.206, or 1603.207,   Occupations Code, before September 1, 2021, may employ or contract   with any qualified individual practitioner holding a certificate,   license, or permit issued under Chapter 1601 or 1602, Occupations   Code, before September 1, 2021, without regard to the chapter under   which the practitioner was issued the certificate, license, or   permit.          SECTION 3.39.  Notwithstanding any other law, on September   1, 2021, the holder of a license issued under former Section   1601.256, 1601.262, or 1601.263, Occupations Code, before that date   may perform the services described by Sections 1603.0011(a)(6) and   (c), Occupations Code, as added by this Act.          SECTION 3.40.  (a) Not later than December 1, 2021, the   presiding officer of the Texas Commission of Licensing and   Regulation shall appoint members to the Barbering and Cosmetology   Advisory Board in accordance with Section 1603.051, Occupations   Code, as amended by this article.          (b)  On December 1, 2021, the Advisory Board on Barbering and   the Advisory Board on Cosmetology are abolished.          (c)  Notwithstanding Section 1603.053, Occupations Code, as   added by this article, in making the initial appointments to the   Barbering and Cosmetology Advisory Board, the presiding officer of   the Texas Commission of Licensing and Regulation shall designate   three members of the advisory board to serve terms expiring January   31, 2023, three members to serve terms expiring January 31, 2025,   and three members to serve terms expiring January 31, 2027.          SECTION 3.41.  As soon as practicable after September 1,   2021, the comptroller of public accounts shall transfer to the   barbering and cosmetology school tuition protection account the   unexpended and unencumbered balance of the barber school tuition   protection account and the unexpended and unencumbered balance of   the private beauty culture school tuition protection account.          SECTION 3.42.  (a) The changes in law made by this article   do not affect the validity of a disciplinary action or other   proceeding that was initiated before September 1, 2021, and that is   pending on September 1, 2021. A disciplinary action that is pending   on September 1, 2021, is governed by the law in effect immediately   before September 1, 2021, and the former law is continued in effect   for that purpose.          (b)  The repeal of a law by this article does not entitle a   person to a refund of a certificate, license, or permit fee paid by   the person before September 1, 2021.   ARTICLE 4. DRIVER TRAINING          SECTION 4.01.  Section 1001.001, Education Code, is amended   by amending Subdivisions (2), (8), (9), (13), and (14) and adding   Subdivisions (6-a), (6-b), (14-b), and (14-c) to read as follows:                (2)  "Classroom instruction" includes instruction   provided in a traditional classroom setting or through other   physical means or remotely through the Internet ["Approved driving   safety course" means a driving safety course approved by the   department].                (6-a)  "Driver education instructor" means an   individual who holds a license to teach or provide driver education   issued under Section 1001.251.                (6-b)  "Driver education provider" means an in-person   driver education provider, an online driver education provider, or   a parent-taught driver education provider.                (8)  "Driver training" means:                      (A)  driver education provided by a driver   education provider [school]; or                      (B)  driving safety training provided by a driving   safety provider [school].                (9)  "Driver training provider [school]" means a driver   education provider [school] or driving safety provider [school].                (13)  "Driving safety provider" means a business that   provides a driving safety course [school" means an enterprise that:                      [(A)  maintains a place of business or solicits   business in this state; and                      [(B)  is operated by an individual, association,   partnership, or corporation for educating and training persons in   driving safety].                (14)  "In-person driver education provider   [Instructor]" means a business that provides driver education   courses in person, including behind-the-wheel instruction,   observation instruction, or driver's license examinations [an   individual who holds a license for the type of instruction being   given].                (14-b)  "Online driver education provider" means a   business that provides driver education courses to students   remotely through the Internet.                (14-c)  "Parent-taught driver education provider"   means a business that provides driver education course materials   through physical means or remotely through the Internet to persons   who conduct parent-taught driver education under Section 1001.112.          SECTION 4.02.  Section 1001.003, Education Code, is amended   to read as follows:          Sec. 1001.003.  LEGISLATIVE INTENT REGARDING SMALL   BUSINESSES. It is the intent of the legislature that commission   rules that affect driver training providers [schools] that qualify   as small businesses be adopted and administered so as to have the   least possible adverse economic effect on the providers [schools].          SECTION 4.03.  Section 1001.004(b), Education Code, is   amended to read as follows:          (b)  The department may charge a fee to each driver education   provider [school] in an amount not to exceed the actual expense   incurred in the regulation of driver education courses established   under Section 1001.1015.          SECTION 4.04.  Section 1001.051, Education Code, is amended   to read as follows:          Sec. 1001.051.  JURISDICTION OVER PROVIDERS [SCHOOLS]. The   department has jurisdiction over and control of driver training   providers [schools] regulated under this chapter.          SECTION 4.05.  Sections 1001.053(a) and (b), Education Code,   are amended to read as follows:          (a)  The department and executive director, as appropriate,   shall:                (1)  administer this chapter;                (2)  enforce minimum standards for driver training   providers [schools] under this chapter;                (3)  enforce rules adopted by the commission that are   necessary to administer this chapter; and                (4)  inspect a driver training provider [school or   course provider] and reinspect the [school or course] provider for   compliance with this chapter.          (b)  The executive director may designate a person   knowledgeable in the administration of regulating driver training   providers [schools] to administer this chapter.          SECTION 4.06.  Section 1001.054, Education Code, is amended   to read as follows:          Sec. 1001.054.  RULES RESTRICTING ADVERTISING. [(c)]  The   commission by rule may restrict advertising by a branch location of   an in-person [a] driver education provider [training school] so   that the location adequately identifies the main business [primary]   location of the provider [school] in a solicitation.          SECTION 4.07.  Sections 1001.055(a), (a-1), and (a-2),   Education Code, are amended to read as follows:          (a)  The department shall provide to each licensed driver   education provider or exempt driver education school [and to each   parent-taught course provider approved under this chapter] driver   education certificates or certificate numbers to enable the [school   or approved parent-taught course] provider or school to issue   department-approved driver education certificates to certify   completion of an approved driver education course and satisfy the   requirements of Sections 521.204(a)(2), Transportation Code,   521.1601, Transportation Code, as added by Chapter 1253 (H.B. 339),   Acts of the 81st Legislature, Regular Session, 2009, and 521.1601,   Transportation Code, as added by Chapter 1413 (S.B. 1317), Acts of   the 81st Legislature, Regular Session, 2009.          (a-1)  A certificate issued by a driver education [school or   parent-taught course] provider licensed [approved] under this   chapter must:                (1)  be in a form required by the department; and                (2)  include an identifying certificate number   provided by the department that may be used to verify the   authenticity of the certificate with the [driver education school   or approved parent-taught course] provider.          (a-2)  A driver education [school or parent-taught course]   provider licensed [approved] under this chapter that purchases   driver education certificate numbers shall issue original and   duplicate certificates in a manner that, to the greatest extent   possible, prevents the unauthorized production or the misuse of the   certificates. The [driver education school or approved   parent-taught course] provider shall electronically submit to the   department in the manner established by the department data   identified by the department relating to issuance of   department-approved driver education certificates with the   certificate numbers.          SECTION 4.08.  Sections 1001.056(b), (c-1), (d), (e), and   (g), Education Code, are amended to read as follows:          (b)  The department shall provide each licensed driving   safety [course] provider with course completion certificate   numbers to enable the provider to issue department-approved uniform   certificates of course completion.          (c-1)  A driving safety [course] provider shall provide for   the issuance of original and duplicate certificates in a manner   that, to the greatest extent possible, prevents the unauthorized   production or the misuse of the certificates.          (d)  A certificate under this section must:                (1)  be in a form required by the department; and                (2)  include an identifying number by which the   department, a court, or the Department of Public Safety may verify   its authenticity with the driving safety [course] provider.          (e)  The commission by rule shall establish a fee for each   course completion certificate number. [A course provider that   supplies a certificate to an operator shall collect from the   operator a fee equal to the amount of the fee paid to the department   for the certificate number.]          (g)  A driving safety [course] provider shall issue a   duplicate certificate by United States mail or commercial or   electronic delivery. The commission by rule shall determine the   amount of the fee for issuance of a duplicate certificate under this   subsection.          SECTION 4.09.  Section 1001.058(b), Education Code, is   amended to read as follows:          (b)  The advisory committee consists of nine [eleven]   members appointed for staggered six-year terms by the presiding   officer of the commission, with the approval of the commission, as   follows:                (1)  three driver education providers [one member   representing a driver education school that offers a traditional   classroom course and in-car training];                (2)  three driving safety providers [one member   representing a driver education school that offers a traditional   classroom course, alternative methods of instruction, or in-car   training];                (3)  [one member representing a driving safety school   offering a traditional classroom course or providing an alternative   method of instruction;                [(4)  one member representing a driving safety course   provider approved for a traditional classroom course and for an   alternative method of instruction;                [(5)  one member representing a driving safety course   provider approved for a traditional classroom course or for an   alternative method of instruction;                [(6)]  one driver education [licensed] instructor;                (4)  the division head [(7) one representative] of the   Department of Public Safety driver license division or the division   head's designee;                [(8)  one member representing a drug and alcohol   driving awareness program course provider;                [(9)  one member representing a parent-taught course   provider;] and                (5)  one member of [(10) two members representing] the   public.          SECTION 4.10.  Section 1001.059(b), Education Code, is   amended to read as follows:          (b)  The department may collaborate with another state   agency or contract with a licensed driver education provider   [school] or a driver education instructor to create the course.          SECTION 4.11.  Subchapter B, Chapter 1001, Education Code,   is amended by adding Section 1001.060 to read as follows:          Sec. 1001.060.  COORDINATION WITH DEPARTMENT OF PUBLIC   SAFETY. (a) The department shall enter into a memorandum of   understanding with the Department of Public Safety for:                (1)  the interagency development of the content of   driver's license examinations and examination reference materials;   and                (2)  any other matter the agencies consider   appropriate.          (b)  The memorandum of understanding must authorize the   Department of Public Safety to share with the department any   relevant information, including information related to examination   results.          SECTION 4.12.  The heading to Subchapter C, Chapter 1001,   Education Code, is amended to read as follows:   SUBCHAPTER C. [OPERATION OF] DRIVER EDUCATION AND DRIVING SAFETY   CURRICULUM [SCHOOL]          SECTION 4.13.  Section 1001.101, Education Code, is amended   to read as follows:          Sec. 1001.101.  ADULT AND MINOR DRIVER EDUCATION COURSE   CURRICULUM AND TEXTBOOKS. (a) The commission by rule shall   establish or approve the curriculum and designate the educational   materials to be used in a driver education course for minors and   adults, including a driver education course conducted by a school   district, driver education provider [school], or parent or other   individual under this chapter.          (b)  The commission by rule shall prescribe the minimum   number of hours of classroom instruction, observation instruction,   and behind-the-wheel instruction that must be completed for a [A]   driver education course to be approved under this chapter [must   require the student to complete:                [(1)  7 hours of behind-the-wheel instruction in the   presence of a person who holds a driver education instructor   license or who meets the requirements for a driver education course   conducted by a parent or other individual under Section 1001.112;                [(2)  7 hours of observation instruction in the   presence of a person who holds a driver education instructor   license or who meets the requirements for a driver education course   conducted by a parent or other individual under Section 1001.112;   and                [(3)  30 hours of behind-the-wheel instruction,   including at least 10 hours of instruction that takes place at   night, in the presence of an adult who meets the requirements of   Section 521.222(d)(2), Transportation Code].          SECTION 4.14.  Sections 1001.1015(b) and (d), Education   Code, are amended to read as follows:          (b)  A driver education course under Subsection (a) must:                (1)  provide at least the minimum number of hours of   classroom instruction required by commission rule [be a six-hour   course]; and                (2)  include instruction in:                      (A)  alcohol and drug awareness;                      (B)  the traffic laws of this state;                      (C)  highway signs, signals, and markings that   regulate, warn, or direct traffic; and                      (D)  the issues commonly associated with motor   vehicle accidents, including poor decision-making, risk taking,   impaired driving, distraction, speed, failure to use a safety belt,   driving at night, failure to yield the right-of-way, and using a   wireless communication device while operating a vehicle.          (d)  A driving safety course [or a drug and alcohol driving   awareness program] may not be approved as a driver education course   under Subsection (a).          SECTION 4.15.  Sections 1001.1016(b) and (c), Education   Code, are amended to read as follows:          (b)  The commission by rule shall require an in-person [a]   driver education provider or online driver education provider   [school providing a driver education course] to:                (1)  in the manner described by the Americans with   Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), make   reasonable modifications and provide aids and services when   providing the classroom instruction portion of a driver education   [the] course that are necessary to ensure that a student who is deaf   or hard of hearing may fully participate in the course; and                (2)  provide to the department the provider's   [school's] plan for complying with the rules adopted under this   section as a condition of obtaining a license under Section   1001.211 or renewing a license [under Section 1001.303].          (c)  The rules adopted under Subsection (b) must allow an   in-person [a] driver education provider or online driver education   provider [school] to comply with the requirements of this section   by playing a video that presents the classroom instruction portion   of the driver education course in a manner that complies with the   requirements of this section.          SECTION 4.16.  Subchapter C, Chapter 1001, Education Code,   is amended by adding Section 1001.1017 to read as follows:          Sec. 1001.1017.  COURSE APPROVAL. A driver training   provider shall submit to the commission for approval the course   length and curriculum content for each course offered by the   provider.  The provider may implement a course length and   curriculum content only after approval by the commission.          SECTION 4.17.  Section 1001.112, Education Code, is amended   to read as follows:          Sec. 1001.112.  PARENT-TAUGHT DRIVER EDUCATION.  (a)  A   person who is eligible under Subsection (b) may conduct [The   commission by rule shall provide for approval of] a driver   education course approved under Section 1001.1017 for another   [conducted by the following persons with the noted relationship to   a] person who is required to complete a driver education course to   obtain a Class C license. In conducting the course, the person must   use course materials provided by a parent-taught driver education   provider.          (b)  A person is eligible to conduct a driver education   course for another person as provided by Subsection (a) if the   person:                (1)  is either:                      (A)  a parent, stepparent, foster parent, legal   guardian, grandparent, or step-grandparent of the other person; or                      (B) [(2)]  an individual who:                            (i) [(A)]  has been designated on a form   prescribed by the department for purposes of this section by a   parent or[, a] legal guardian of the other person[,] or by a judge   of a court with jurisdiction over the other person [on a form   prescribed by the department];                            (ii) [(B)]  is at least 25 years of age [or   older];                            (iii) [(C)]  does not charge a fee for   conducting the course; and                            (iv) [(D)]  has at least seven years of   driving experience;                (2)  has possessed [and                      [(E)  otherwise qualifies to conduct a course   under Subsection (a-1).          [(a-1)  The rules must provide that the student driver spend   a minimum number of hours in classroom and behind-the-wheel   instruction.          [(a-2)  The rules must provide that the person conducting the   course:                [(1) possess] a valid license for the preceding three   years that has not been suspended, revoked, or forfeited in the past   three years for an offense that involves the operation of a motor   vehicle;                (3) [(2)]  has not been convicted of:                      (A)  criminally negligent homicide; or                      (B)  driving while intoxicated in the past seven   years; and                (4) [(3)]  has not been convicted during the preceding   three years of:                      (A)  three or more moving violations described by   Section 542.304, Transportation Code, including violations that   resulted in an accident; or                      (B)  two or more moving violations described by   Section 542.304, Transportation Code, that resulted in an accident.          (c)  A person conducting a driver education course under this   section may provide the classroom instruction portion, the   behind-the-wheel instruction portion, or both portions.          (d) [(b)]  The department may [approve a course described by   Subsection (a) if the department determines that the course   materials are at least equal to those required in a course approved   by the department, and the department may] not require for a course   conducted under this section that:                (1)  the classroom instruction be provided in a room   with particular characteristics or equipment; or                (2)  the vehicle used for the behind-the-wheel   instruction have equipment other than the equipment otherwise   required by law for operation of the vehicle on a highway while the   vehicle is not being used for driver training.          (e)  A parent-taught driver education provider [(c) The   rules must provide a method by which:                [(1)  approval of a course is obtained;                [(2)  an applicant submits proof of completion of the   course;                [(3)  approval for delivering course materials by an   alternative method, including electronic means, is obtained;                [(4)  a provider of a course approved under this   section] may administer to an applicant the highway sign and   traffic law parts of the examination as provided by Section   521.1655(a-1), Transportation Code, through electronic means[; and                [(5)  an applicant submits proof of passage of an   examination administered under Subdivision (4)].          (f) [(d)  Completion of a driver education course approved   under this section has the same effect under this chapter as   completion of a driver education course approved by the department.          [(e)] The department may not charge a fee for the submission   of proof of:                (1)  completion of a [the] course conducted under this   section; or                (2)  passage of an examination administered under   Subsection (e) [(c)].          SECTION 4.18.  Sections 1001.151(b) and (c), Education Code,   are amended to read as follows:          (b)  The commission by rule shall establish a fee for:                (1)  an initial in-person driver education provider   [school] license and for each branch location;                (2)  an initial online driver education provider   [driving safety school] license;                (3)  an initial parent-taught driver education   [course] provider license[, except that the executive director may   waive the fee];                (4)  an initial driving safety provider license;                (5)  the annual renewal for a [course provider,]   driving safety provider [school], driver education provider   [school], or branch location of an in-person driver education   provider, except that the executive director may waive the fee if   revenue generated by the issuance of course completion certificate   numbers and driver education certificates is sufficient to cover   the cost of administering this chapter and Article 45.0511, Code of   Criminal Procedure;                (6) [(5)]  a change of address of a driver education   provider [school, driving safety school,] or driving safety   [course] provider; and                (7) [(6)]  a change of name of:                      (A)  a driver education [school or course]   provider or an owner of a driver education [school or course]   provider; or                      (B)  a driving safety provider [school] or an   owner of a driving safety provider [school;                [(7)  each additional driver education or driving   safety course at a driver training school; and                [(8)  an initial application for approval of a driving   safety course that has not been evaluated by the department].          (c)  An application for an initial driver education [or   driving safety] instructor license must be accompanied by a   processing fee and an annual license fee, except that the   department may not collect the processing fee from an applicant   [for a driver education instructor license] who is currently   teaching a driver education course in a public school in this state.          SECTION 4.19.  The heading to Subchapter E, Chapter 1001,   Education Code, is amended to read as follows:   SUBCHAPTER E. LICENSING OF DRIVER TRAINING [SCHOOLS AND COURSE]   PROVIDERS          SECTION 4.20.  Section 1001.201, Education Code, is amended   to read as follows:          Sec. 1001.201.  LICENSE REQUIRED. (a) A person may not   provide:                (1)  [operate a school that provides] a driver   education course:                      (A)  in person unless the person holds an   in-person [a] driver education provider [school] license; or                      (B)  online unless the person holds an online   driver education provider license;                (2)  driver education course materials to persons   conducting parent-taught driver education under Section 1001.112   unless the person holds a parent-taught driver education provider   license; or                (3)  [operate a school that provides] driving safety   courses unless the person holds a driving safety provider [school]   license[; or                [(3)  operate as a course provider unless the person   holds a course provider license].          (b)  The commission by rule shall provide for the issuance   of:                (1)  an in-person driver education provider license to   a person who holds an online driver education provider license, a   parent-taught driver education provider license, or both of those   licenses;                (2)  an online driver education provider license to a   person who holds an in-person driver education provider license, a   parent-taught driver education provider license, or both of those   licenses; and                (3)  a parent-taught driver education provider license   to a person who holds an in-person driver education provider   license, an online driver education provider license, or both of   those licenses.          SECTION 4.21.  Section 1001.202, Education Code, is amended   to read as follows:          Sec. 1001.202.  LOCATIONS FOR IN-PERSON DRIVER EDUCATION   PROVIDERS. An in-person [(a) A] driver education provider [school]   that teaches a driver education course at one or more branch   locations must obtain a separate in-person driver education   provider [school] license for its main business location and for   each branch location. An in-person [A] driver education provider   [school] may not operate a branch location of a branch location.          [(b)  A driving safety school may use multiple classroom   locations to teach a driving safety course if each location is   approved by the department.]          SECTION 4.22.  Section 1001.204, Education Code, is amended   to read as follows:          Sec. 1001.204.  REQUIREMENTS FOR DRIVER EDUCATION PROVIDER   [SCHOOL] LICENSE. (a) The commission by rule shall establish the   criteria applicable to each [for a] driver education provider   [school] license.          (b)  The department shall approve an application for a driver   education provider [school] license if the application is submitted   on a form approved by the department, the application is   accompanied by the fee, and the department determines that the   applicant [school]:                (1)  has courses, curricula, and instruction of a   quality, content, and length that reasonably and adequately achieve   the stated objective for which the courses, curricula, and   instruction are offered;                (2)  [has adequate space, equipment, instructional   material, and instructors to provide training of good quality in   the classroom and behind the wheel, if applicable;                [(3)  has instructors who have adequate educational   qualifications and experience;                [(4)] provides to each student before enrollment or   each person before contracting for driver education course   materials, to the extent applicable:                      (A)  a copy of:                            (i)  the refund policy;                            (ii)  the schedule of tuition, fees, and   other charges; and                            (iii)  the regulations relating to absence,   grading policy, and rules of operation and conduct; and                      (B)  the department's name, mailing address,   telephone number, and Internet website address for the purpose of   directing complaints to the department;                (3)  to the extent applicable, [(5)] maintains adequate   records as prescribed by the department to show attendance and   progress or grades and enforces satisfactory standards relating to   attendance, progress, and conduct;                (4) [(6)]  on completion of training, issues each   student a certificate indicating the course name and satisfactory   completion;                (5) [(7)]  complies with all county, municipal, state,   and federal laws [regulations], including [fire, building, and   sanitation codes and] assumed name registration and other[, if]   applicable requirements;                (6) [(8)]  is financially sound and capable of   fulfilling its commitments for training;                (7) [(9)]  maintains and publishes as part of its   student enrollment contract or materials contract, as applicable,   the proper policy for the refund of the unused portion of tuition,   fees, and other charges if a student fails to take the course or   withdraws or is discontinued from the provider [school] at any time   before completion;                (8) [(10)]  does not use erroneous or misleading   advertising, either by actual statement, omission, or intimation,   as determined by the department;                (9) [(11)]  does not use a name similar to the name of   another existing driver education provider [school] or   tax-supported educational institution in this state, unless   specifically approved in writing by the executive director;                (10) [(12)]  submits to the department for approval the   applicable course hour lengths and curriculum content for each   course offered by the provider [school];                (11) [(13)]  does not owe an administrative penalty for   a violation of this chapter;                (12)  meets all requirements applicable to the license   type under Section 1001.2041, 1001.2042, or 1001.2043; and                (13) [(14)]  meets any additional criteria required by   the department, including any applicable inspection requirements[;   and                [(15)  provides adequate testing and security measures   for the school's method of instruction].          SECTION 4.23.  Subchapter E, Chapter 1001, Education Code,   is amended by adding Sections 1001.2041, 1001.2042, and 1001.2043   to read as follows:          Sec. 1001.2041.  REQUIREMENTS FOR IN-PERSON DRIVER   EDUCATION PROVIDER. Before an in-person driver education provider   license may be issued, the department must determine that the   applicant has adequate space, equipment, instructional material,   and driver education instructors to provide training of good   quality in the classroom and behind the wheel.          Sec. 1001.2042.  REQUIREMENTS FOR ONLINE DRIVER EDUCATION   PROVIDER. Before an online driver education provider license may   be issued, the department must determine that the applicant has:                (1)  adequate driver education instructors to provide   training of good quality; and                (2)  adequate testing and security measures to validate   a student's identity and active participation in a driver education   course.          Sec. 1001.2043.  REQUIREMENTS FOR PARENT-TAUGHT DRIVER   EDUCATION PROVIDER. (a) Before a parent-taught driver education   provider license may be issued, the department must determine that   the applicant has:                (1)  an adequate method by which a person completing a   parent-taught driver education course under Section 1001.112 using   the provider's course materials may submit proof of:                      (A)  completion of the course; or                      (B)  passage of an examination administered by the   provider under Section 1001.112(e);                (2)  hired or contracted with only driver education   instructors, if the provider elects to hire or contract with an   instructor to assist with driver education; and                (3)  adequate testing and security measures to validate   a student's active participation in a driver education course   conducted using course materials provided remotely through the   Internet.          (b)  Except as specifically provided by this chapter, a   parent-taught driver education provider that provides driver   education course materials remotely through the Internet is not   subject to any course or curriculum requirements established by the   commission or department for online driver education providers.          SECTION 4.24.  Section 1001.206, Education Code, is amended   to read as follows:          Sec. 1001.206.  REQUIREMENTS FOR DRIVING SAFETY [COURSE]   PROVIDER LICENSE. (a) The commission by rule shall establish   criteria for a driving safety [course] provider license.          (b)  The department shall approve an application for a   driving safety [course] provider license if the application is   submitted on a form approved by the executive director, includes   the fee, and [on inspection of the premises of the school] the   department determines that the applicant:                (1)  has driving safety courses, curricula, and   instruction of a quality, content, and length that reasonably and   adequately achieve the stated objective for which the courses,   curricula, and instruction are offered [the course provider has an   approved course that at least one licensed driving safety school is   willing to offer];                (2)  provides [the course provider has adequate   educational qualifications and experience;                [(3)  the course provider will:                      [(A)  develop and provide] to each student before   enrollment:                      (A)  [driving safety school that offers the   approved course] a copy of:                            (i)  the refund policy; [and]                            (ii)  the schedule of tuition, fees, and   other charges; and                            (iii)  the regulations relating to absence,   grading policy, and rules of operation and conduct; and                      (B)  [provide to the driving safety school] the   department's name, mailing address, telephone number, and Internet   website address for the purpose of directing complaints to the   department;                (3) [(4)  a copy of the information provided to each   driving safety school under Subdivision (3) will be provided to   each student by the school before enrollment;                [(5)] not later than the 15th working day after the date   a person successfully completes the course, issues [the course   provider will issue] and delivers [deliver] to the person by United   States mail or commercial or electronic delivery a uniform   certificate of course completion indicating the course name and   successful completion;                (4) [(6)  the course provider] maintains adequate   records as prescribed by the department to show attendance and   progress or grades and enforces satisfactory standards relating to   attendance, progress, and conduct;                (5) [(7)  the course provider] complies with all   county, municipal, state, and federal laws, including assumed name   registration and other applicable requirements;                (6) [(8)  the course provider] is financially sound and   capable of fulfilling its commitments for training;                (7) [(9)  the course provider] maintains and publishes   as a part of its student enrollment contract the proper policy for   the refund of the unused portion of tuition, fees, and other charges   if a student fails to take the course or withdraws or is   discontinued from the provider [school] at any time before   completion;                (8)  [(10)  the course provider] does not use erroneous   or misleading advertising, either by actual statement, omission, or   intimation, as determined by the department;                (9)  [(11)  the course provider] does not use a name   similar to the name of another existing driving safety provider   [school] or tax-supported educational institution in this state,   unless specifically approved in writing by the executive director;                (10)  submits to the department for approval the   applicable course hour lengths and curriculum content for each   course offered by the provider;                (11)  [(12)  the course provider] does not owe an   administrative penalty for a violation of this chapter;                (12)  provides adequate testing and security measures   for the provider's method of instruction to validate a student's   identity and active participation in a driving safety course; and                (13)  [the course provider] meets any additional   criteria required by the department.          SECTION 4.25.  Section 1001.207, Education Code, is amended   to read as follows:          Sec. 1001.207.  BOND REQUIREMENTS: DRIVER EDUCATION   PROVIDER [SCHOOL]. (a) Before a driver education provider   [school] may be issued a license, the provider [school] must file a   corporate surety bond with the department in the amount of:                (1)  $10,000 [for the primary location of the school];   and                (2)  for an in-person driver education provider, $5,000   for each branch location of the provider.          (b)  A bond issued under Subsection (a) must be:                (1)  issued in a form approved by the department;                (2)  issued by a company authorized to do business in   this state;                (3)  payable to the department to be used only for   payment of a refund due to a student or potential student;                (4)  conditioned on the compliance of the provider   [school] and its officers, agents, and employees with this chapter   and rules adopted under this chapter; and                (5)  issued for a period corresponding to the term of   the license.          (c)  Posting of a bond in the amount required under   Subsection (a) satisfies the requirements for financial stability   for driver education providers [schools] under this chapter.          (d)  A driver education provider who files a bond under   Subsection (a)(1) or provides an alternate form of security under   Section 1001.210 to obtain one type of driver education provider   license may not be required to file an additional bond under   Subsection (a)(1) or provide an alternate form of security under   Section 1001.210 for any other type of driver education provider   license.          SECTION 4.26.  Section 1001.209, Education Code, is amended   to read as follows:          Sec. 1001.209.  BOND REQUIREMENTS: DRIVING SAFETY [COURSE]   PROVIDER. (a) Before a license may be issued to a driving safety   [course] provider, the [course] provider must provide a corporate   surety bond in the amount of $10,000.          (b)  A bond issued under Subsection (a) must be:                (1)  issued by a company authorized to do business in   this state;                (2)  payable to the department to be used:                      (A)  for payment of a refund due a student of the   [course] provider's approved driving safety courses [course];                      (B)  to cover the payment of unpaid fees or   penalties assessed by the executive director or the commission; or                      (C)  to recover any cost associated with providing   course completion certificate numbers, including the cancellation   of certificate numbers;                (3)  conditioned on the compliance of the [course]   provider and its officers, agents, and employees with this chapter   and rules adopted under this chapter; and                (4)  issued for a period corresponding to the term of   the license.          SECTION 4.27.  Section 1001.210, Education Code, is amended    to read as follows:          Sec. 1001.210.  ALTERNATE FORM OF SECURITY. Instead of the   bond required by Section 1001.207 or 1001.209, a driver education   provider [school] or driving safety [course] provider may provide   another form of security that is:                (1)  approved by the department; and                (2)  in the amount required for a comparable bond under   Section 1001.207 or 1001.209.          SECTION 4.28.  Sections 1001.211(b) and (c), Education Code,   are amended to read as follows:          (b)  A license must be in a form determined by the department   and must show in a clear and conspicuous manner:                (1)  the date of issuance, effective date, and term of   the license;                (2)  the name and address of the driver training   [school or course] provider;                (3)  the authority for and conditions of approval; and                (4)  any other fair and reasonable representation that   is consistent with this chapter and that the department considers   necessary.          (c)  An applicant may obtain both a driver education provider   [school] license and a driving safety provider [school] license.          SECTION 4.29.  Sections 1001.213(b), (c), and (d), Education   Code, are amended to read as follows:          (b)  If a change in ownership of a driver training [school or   course] provider is proposed, a new owner shall apply for a new   [school or course] provider license at least 30 days before the date   of the change.          (c)  The commission by rule may establish fees for a new   driver training [education school or course] provider license under   Subsection (b) and, if applicable, for each branch location of an   in-person driver education provider if:                (1)  the new owner is substantially similar to the   previous owner; and                (2)  there is no significant change in the management   or control of the [driver education school or course] provider.          (d)  The department may inspect a driver training provider's   main [school] or [a] branch location, as applicable, after a change   of ownership.          SECTION 4.30.  Section 1001.214, Education Code, is amended   to read as follows:          Sec. 1001.214.  DUPLICATE LICENSE. A duplicate license may   be issued to a driver training [school or course] provider if:                (1)  the original license is lost or destroyed; and                (2)  an affidavit of that fact is filed with the   department.          SECTION 4.31.  Section 1001.251(a), Education Code, is   amended to read as follows:          (a)  Except as authorized under Section 1001.112, a [A]   person may not teach or provide driver education[, either as an   individual or in a driver education school,] or conduct any phase of   driver education[,] unless the person holds a driver education   instructor license issued by the executive director.          SECTION 4.32.  Section 1001.2511(e), Education Code, is   amended to read as follows:          (e)  The commission may adopt rules to administer this   section, including rules establishing:                (1)  deadlines for a person to submit fingerprints and   photographs in compliance with this section;                (2)  sanctions for a person's failure to comply with the   requirements of this section, including suspension or revocation of   or refusal to issue a license described by Subsection (a); and                (3)  notification to a driver education provider   [school] of relevant information obtained by the department under   this section.          SECTION 4.33.  Section 1001.2512, Education Code, is amended   to read as follows:          Sec. 1001.2512.  FEES FOR CRIMINAL HISTORY RECORD   INFORMATION REVIEW. The commission by rule shall require a person   submitting to a national criminal history record information review   under Section 1001.2511 or the driver education provider [school]   employing the person, as determined by the department, to pay a fee   for the review in an amount not to exceed the amount of any fee   imposed on an application for certification under Subchapter B,   Chapter 21, for a national criminal history record information   review under Section 22.0837.          SECTION 4.34.  Section 1001.2513, Education Code, is amended   to read as follows:          Sec. 1001.2513.  CONFIDENTIALITY OF INFORMATION. A social   security number, driver's license number, other identification   number, or fingerprint record collected for a person to comply with   Section 1001.2511:                (1)  may not be released except:                      (A)  to provide relevant information to driver   education providers [schools] or otherwise to comply with Section   1001.2511;                      (B)  by court order; or                      (C)  with the consent of the person who is the   subject of the information;                (2)  is not subject to disclosure as provided by   Chapter 552, Government Code; and                (3)  shall be destroyed by the requestor or any   subsequent holder of the information not later than the first   anniversary of the date the information is received.          SECTION 4.35.  Sections 1001.2514(a) and (d), Education   Code, are amended to read as follows:          (a)  A driver education provider [school] shall discharge or   refuse to hire as an instructor an employee or applicant for   employment if the department obtains information through a criminal   history record information review that:                (1)  the employee or applicant has been convicted of:                      (A)  a felony offense under Title 5, Penal Code;                      (B)  an offense on conviction of which a defendant   is required to register as a sex offender under Chapter 62, Code of   Criminal Procedure; or                      (C)  an offense under the laws of another state or   federal law that is equivalent to an offense under Paragraph (A) or   (B); and                (2)  at the time the offense occurred, the victim of the   offense described by Subdivision (1) was under 18 years of age or   was enrolled in a public school.          (d)  A driver education provider [school] may discharge an   employee who serves as an instructor if the provider [school]   obtains information of the employee's conviction of a felony or of a   misdemeanor involving moral turpitude that the employee did not   disclose to the provider [school] or the department. An employee   discharged under this subsection is considered to have been   discharged for misconduct for purposes of Section 207.044, Labor   Code.          SECTION 4.36.  Section 1001.2531(b), Education Code, is   amended to read as follows:          (b)  An applicant for a driver education instructor license   under this section must:                (1)  apply to the department on a form prescribed by the   department and under rules adopted by the commission;                (2)  submit with the application a nonrefundable   application fee in an amount set by commission rule; and                (3)  present satisfactory evidence to the department   that the applicant:                      (A)  is at least 21 years of age; and                      (B)  [holds a high school diploma or high school   equivalency certificate; and                      [(C)]  meets any other requirement established by   commission rule.          SECTION 4.37.  Sections 1001.255(a), (b), and (c), Education   Code, are amended to read as follows:          (a)  The department shall regulate as a driver education   provider of the type determined appropriate by the department   [school] a driver education instructor who:                (1)  teaches driver education courses in a county   having a population of 50,000 or less; and                (2)  does not teach more than 200 students annually.          (b)  An instructor described by Subsection (a) must submit to   the department an application for an initial or renewal driver   education provider [school] license, together with all required   documentation and information.          (c)  The executive director may waive initial or renewal   driver education provider [school] license fees.          SECTION 4.38.  Section 1001.301, Education Code, is amended   to read as follows:          Sec. 1001.301.  EXPIRATION OF DRIVER TRAINING [SCHOOL OR   COURSE] PROVIDER LICENSE. The term of a driver training [education   school, driving safety school, or course] provider license may not   exceed one year.          SECTION 4.39.  Section 1001.302, Education Code, is amended   to read as follows:          Sec. 1001.302.  EXPIRATION OF DRIVER EDUCATION INSTRUCTOR   LICENSE. The term of a driver education instructor [or driving   safety instructor] license may not exceed one year.          SECTION 4.40.  Section 1001.351, Education Code, is amended   to read as follows:          Sec. 1001.351.  DRIVING SAFETY [COURSE] PROVIDER   RESPONSIBILITIES. (a) Not later than the 15th working day after   the course completion date, a driving safety [course] provider or a   person at the [course] provider's facilities shall issue and   deliver by United States mail or commercial or electronic delivery   a uniform certificate of course completion to a person who   successfully completes an approved driving safety course.          (b)  A driving safety [course] provider shall electronically   submit to the department in the manner established by the   department data identified by the department relating to uniform   certificates of course completion issued by the [course] provider.          [(c)  A course provider shall conduct driving safety   instructor development courses for its approved driving safety   courses.]          SECTION 4.41.  Section 1001.352, Education Code, is amended   to read as follows:          Sec. 1001.352.  FEES FOR DRIVING SAFETY COURSE. A driving   safety [course] provider shall charge each student:                (1)  at least $25 for a driving safety course; and                (2)  a fee of at least $3 for course materials and for   supervising and administering the course.          SECTION 4.42.  Section 1001.353, Education Code, is amended   to read as follows:          Sec. 1001.353.  DRIVER TRAINING COURSE AT PUBLIC OR PRIVATE   SCHOOL. A driver training provider [school] may conduct a driver   training course at a public or private school for students of the   public or private school as provided by an agreement with the public   or private school. The course is subject to any law applicable to a   course conducted at the main business location of the driver   training provider [school].          SECTION 4.43.  Section 1001.355, Education Code, is amended   to read as follows:          Sec. 1001.355.  WITHHOLDING CERTAIN RECORDS. A driver   training provider [school] may withhold a student's diploma or   certificate of completion until the student fulfills the student's   financial obligation to the provider [school].          SECTION 4.44.  Section 1001.356, Education Code, is amended   to read as follows:          Sec. 1001.356.  REQUIREMENT TO CARRY LICENSE. A driver   education instructor [or driving safety instructor] shall carry the   person's instructor license at all times while instructing a driver   education course [or driving safety course].          SECTION 4.45.  Section 1001.357, Education Code, is amended   to read as follows:          Sec. 1001.357.  CONTRACT WITH UNLICENSED DRIVER TRAINING   PROVIDER [SCHOOL]. A contract entered into with a person for a   course of instruction by or on behalf of a person operating an   unlicensed driver training provider [school] is unenforceable.          SECTION 4.46.  Section 1001.401, Education Code, is amended   to read as follows:          Sec. 1001.401.  CANCELLATION AND SETTLEMENT POLICY. As a   condition for obtaining a driver training [education school license   or course] provider license, the [school or course] provider must   maintain a cancellation and settlement policy that provides a full   refund of all money paid by a student if:                (1)  the student cancels the enrollment contract before   midnight of the third day, other than a Saturday, Sunday, or legal   holiday, after the date the enrollment contract is signed by the   student, unless the student successfully completes the course or   receives a failing grade on the course examination; or                (2)  the enrollment of the student was procured as a   result of a misrepresentation in:                      (A)  advertising or promotional materials of the   [school or course] provider; or                      (B)  a representation made by an owner or employee   of the [school or course] provider.          SECTION 4.47.  Section 1001.402, Education Code, is amended   to read as follows:          Sec. 1001.402.  TERMINATION POLICY. (a) As a condition for   obtaining a driver training provider [education school] license,   the provider [school] must maintain a policy for the refund of the   unused portion of tuition, fees, and other charges if a student,   after expiration of the cancellation period described by Section   1001.401, does not enter the course or withdraws or is discontinued   from the course at any time before completion.          (b)  The policy must provide that:                (1)  refunds are based on the period of enrollment   computed on the basis of course time expressed in clock hours;                (2)  the effective date of the termination for refund   purposes is the earliest of:                      (A)  the last day of attendance, if the student's   enrollment is terminated by the provider [school];                      (B)  the date the provider [school] receives   written notice from the student; or                      (C)  the 10th school day after the last day of   attendance;                (3)  if tuition is collected in advance of entrance and   if a student does not enter the course [school], terminates   enrollment, or withdraws, the provider [school]:                      (A)  may retain not more than $50 as an   administrative expense; and                      (B)  shall refund that portion of the student's   remaining classroom tuition and fees and behind-the-wheel tuition   and fees that corresponds to services the student does not receive;                (4)  the provider [school] shall refund items of extra   expense to the student, including instructional supplies, books,   laboratory fees, service charges, rentals, deposits, and all other   charges not later than the 30th day after the effective date of   enrollment termination if:                      (A)  the extra expenses are separately stated and   shown in the information provided to the student before enrollment;   and                      (B)  the student returns to the provider [school]   any provider [school] property in the student's possession; and                (5)  refunds shall be completed not later than the 30th   day after the effective date of enrollment termination.          SECTION 4.48.  Section 1001.403, Education Code, is amended   to read as follows:          Sec. 1001.403.  REFUND FOR DISCONTINUED COURSE. On the   discontinuation of a course by a driver training [education school   or a course] provider that prevents a student from completing the   course, all tuition and fees paid become refundable.          SECTION 4.49.  Sections 1001.404(a) and (c), Education Code,   are amended to read as follows:          (a)  If a refund is not timely made, the driver training   [education school or course] provider shall pay interest on the   amount of the refund. Interest begins to accrue on the first day   after the expiration of the refund period and ends on the day   preceding the date the refund is made.          (c)  The department may except a driver training [education   school or course] provider from the payment of interest if the   [school or course] provider makes a good-faith effort to refund   tuition, fees, and other charges but is unable to locate the student   to whom the refund is owed. On request of the department, the   driver training [school or course] provider shall document the   effort to locate a student.          SECTION 4.50.  Subchapter I, Chapter 1001, Education Code,   is amended by adding Section 1001.405 to read as follows:          Sec. 1001.405.  APPLICABILITY TO PARENT-TAUGHT DRIVER   EDUCATION PROVIDER. The commission shall adopt rules as necessary   to ensure this subchapter applies as appropriate to a parent-taught   driver education provider.          SECTION 4.51.  Section 1001.451, Education Code, is amended   to read as follows:          Sec. 1001.451.  PROHIBITED PRACTICES. A person may not:                (1)  use advertising that is false, misleading, or   deceptive;                (2)  fail to notify the department of the   discontinuance of the operation of a driver training provider   [school] before the 15th working day after the date of cessation of   classes and make available accurate records as required by this   chapter;                (3)  issue, sell, trade, or transfer:                      (A)  a uniform certificate of course completion or   driver education certificate to a person or driver training   provider [school] not authorized to possess the certificate;                      (B)  a uniform certificate of course completion to   a person who has not successfully completed an approved[, six-hour]   driving safety course; or                      (C)  a driver education certificate to a person   who has not successfully completed a department-approved driver   education course;                (4)  negotiate a promissory instrument received as   payment of tuition or another charge before the student completes   75 percent of the course, except that before that time the   instrument may be assigned to a purchaser who becomes subject to any   defense available against the provider [school] named as payee; or                (5)  conduct any part of an approved driver education   course [or driving safety course] without having an instructor   adequately available [physically present in appropriate proximity]   to the student for the type of instruction being given.          SECTION 4.52.  Section 1001.452, Education Code, is amended   to read as follows:          Sec. 1001.452.  COURSE OF INSTRUCTION OR PROVISION OF   MATERIALS. A driver training provider [school] may not conduct a   course of instruction or provide driver education course materials,   as applicable, in this state before the date the provider [school]   receives the necessary [a] driver training provider [school]   license from the department.          SECTION 4.53.  The heading to Section 1001.453, Education   Code, is amended to read as follows:          Sec. 1001.453.  DISTRIBUTION OF WRITTEN INFORMATION ON   DRIVING SAFETY [COURSE] PROVIDER.          SECTION 4.54.  Sections 1001.453(a) and (b), Education Code,   are amended to read as follows:          (a)  A person may not distribute within 500 feet of a court   with jurisdiction over an offense to which Article 45.0511, Code of   Criminal Procedure, applies written information that advertises a   driving safety [course] provider.          (b)  The department may revoke the license of a driving   safety [course] provider if the [course] provider or the [course]   provider's agent, employee, or representative violates this   section.          SECTION 4.55.  Section 1001.455, Education Code, is amended   to read as follows:          Sec. 1001.455.  DENIAL, SUSPENSION, OR REVOCATION OF DRIVER   EDUCATION INSTRUCTOR LICENSE. (a)  The executive director or the   commission may deny an application for a driver education [an]   instructor license or suspend or revoke the license of a driver   education [an] instructor if the instructor:                (1)  fails to meet a requirement for issuance of or   holding a license under this chapter;                (2)  permits or engages in misrepresentation, fraud, or   deceit in applying for or obtaining a certificate, license, or   permit;                (3)  induces fraud or fraudulent practices on the part   of an applicant for a driver's license or permit;                (4)  permits or engages in any other fraudulent   practice in an action between the applicant or license holder and   the public;                (5)  fails to comply with commission rules relating to   driver instruction; or                (6)  fails to comply with this chapter.          SECTION 4.56.  Section 106.115(a), Alcoholic Beverage Code,   is amended to read as follows:          (a)  On the placement of a minor on deferred disposition for   an offense under Section 49.02, Penal Code, or under Section   106.02, 106.025, 106.04, 106.041, 106.05, or 106.07, the court   shall require the defendant to attend an alcohol awareness program   approved by the Texas Department of Licensing and Regulation under   this section or [,] a drug education program approved by the   Department of State Health Services in accordance with Section   521.374, Transportation Code[, or a drug and alcohol driving   awareness program approved by the Texas Education Agency]. On   conviction of a minor of an offense under one or more of those   sections, the court, in addition to assessing a fine as provided by   those sections, shall require a defendant who has not been   previously convicted of an offense under one of those sections to   attend an alcohol awareness program or[,] a drug education   program[, or a drug and alcohol driving awareness program]   described by this subsection. If the defendant has been previously   convicted once or more of an offense under one or more of those   sections, the court may require the defendant to attend an alcohol   awareness program or [,] a drug education program[, or a drug and   alcohol driving awareness program] described by this subsection. If   the defendant is younger than 18 years of age, the court may require   the parent or guardian of the defendant to attend the program with   the defendant. The Texas Department of Licensing and Regulation or   Texas Commission of Licensing and Regulation, as appropriate:                (1)  is responsible for the administration of the   certification of approved alcohol awareness programs;                (2)  may charge a nonrefundable application fee for:                      (A)  initial certification of the approval; or                      (B)  renewal of the certification;                (3)  shall adopt rules regarding alcohol awareness   programs approved under this section; and                (4)  shall monitor, coordinate, and provide training to   a person who provides an alcohol awareness program.          SECTION 4.57.  Article 45.051(b-1), Code of Criminal   Procedure, is amended to read as follows:          (b-1)  If the defendant is younger than 25 years of age and   the offense committed by the defendant is a traffic offense   classified as a moving violation:                (1)  Subsection (b)(8) does not apply;                (2)  during the deferral period, the judge[:                      [(A)]  shall require the defendant to complete a   driving safety course approved under Chapter 1001, Education Code;   and                      [(B)  may require the defendant to complete an   additional driving safety course designed for drivers younger than   25 years of age and approved under Section 1001.111, Education   Code; and]                (3)  if the defendant holds a provisional license,   during the deferral period the judge shall require that the   defendant be examined by the Department of Public Safety as   required by Section 521.161(b)(2), Transportation Code; a   defendant is not exempt from the examination regardless of whether   the defendant was examined previously.          SECTION 4.58.  Section 28.012(a)(3), Education Code, is   amended to read as follows:                (3)  "Driver training provider [school]" has the   meaning assigned by Section 1001.001.          SECTION 4.59.  Section 28.012(e), Education Code, is amended   to read as follows:          (e)  Subject to rules adopted by the board, a school district   or open-enrollment charter school may tailor the instruction   developed under this section as appropriate for the district's or   school's community. In tailoring the instruction, the district or   school shall solicit input from local law enforcement agencies,   driver training providers [schools], and the community.          SECTION 4.60.  Section 29.902(c), Education Code, is amended   to read as follows:          (c)  A school district shall consider offering a driver   education and traffic safety course during each school year. If the   district offers the course, the district may:                (1)  conduct the course and charge a fee for the course   in the amount determined by the agency to be comparable to the fee   charged by a driver education provider [school] that holds a   license under Chapter 1001; or                (2)  contract with a driver education provider [school]   that holds a license under Chapter 1001 to conduct the course.          SECTION 4.61.  Section 123.007, Government Code, is amended   to read as follows:          Sec. 123.007.  USE OF OTHER DRUG AND ALCOHOL AWARENESS   PROGRAMS. In addition to using a drug court program established   under this chapter, the commissioners court of a county or a court   may use other drug awareness [or drug and alcohol driving   awareness] programs to treat persons convicted of drug or alcohol   related offenses.          SECTION 4.62.  Section 521.165(e), Transportation Code, is   amended to read as follows:          (e)  The department may authorize an entity described by   Subsection (a), including a driver education provider [school]   described by Section 521.1655, to administer the examination   required by Section 521.161(b)(2).          SECTION 4.63.  Sections 521.1655(a) and (a-1),   Transportation Code, are amended to read as follows:          (a)  An in-person [A] driver education provider or online   driver education provider [school] licensed under Chapter 1001,   Education Code, may administer to a student of that provider   [school] the vision, highway sign, and traffic law parts of the   examination required by Section 521.161.          (a-1)  A parent-taught driver education [course] provider   licensed [approved] under Chapter 1001, Education Code, [Section   521.205] may administer to a student of that course the highway sign   and traffic law parts of the examination required by Section   521.161.          SECTION 4.64.  Sections 521.206(a) and (b), Transportation   Code, are amended to read as follows:          (a)  The department shall collect data regarding collisions   of students taught by public schools, driver education providers   [schools] licensed under Chapter 1001, Education Code, and other   entities that offer driver education courses to students for which   a uniform certificate of course completion is issued. The   collision rate is computed by determining the number of an entity's   students who complete a driver education course during a state   fiscal year, dividing that number by the number of collisions that   involved students who completed such a course and that occurred in   the 12-month period following their licensure, and expressing the   quotient as a percentage.          (b)  The department shall collect data regarding the   collision rate of students taught by course instructors approved   under Section 1001.112, Education Code. The collision rate is   computed by determining the number of students who completed a   course taught [approved] under that section [Section 1001.112,   Education Code,] during a state fiscal year, dividing that number   by the number of collisions that involved students who completed   such a course and that occurred in the 12-month period following   their licensure, and expressing the quotient as a percentage.          SECTION 4.65.  Section 521.222(a), Transportation Code, is   amended to read as follows:          (a)  The department may issue a learner license, including a   Class A or Class B driver's learner license, to a person who:                (1)  is 15 years of age or older but under 18 years of   age;                (2)  has satisfactorily completed and passed the   classroom phase of an approved driver education course, which may   be a course taught [approved] under Section 1001.112, Education   Code;                (3)  meets the requirements imposed under Section   521.204(a)(3); and                (4)  has passed each examination required under Section   521.161 other than the driving test.          SECTION 4.66.  Section 542.304(a), Transportation Code, as   added by Chapter 1094 (H.B. 2048), Acts of the 86th Legislature,   Regular Session, 2019, is amended to conform to Section 4.40,   Chapter 1352 (S.B. 346), Acts of the 86th Legislature, Regular   Session, 2019, and is further amended to read as follows:          (a)  The department by rule shall designate the offenses   involving the operation of a motor vehicle that constitute a moving   violation of the traffic law for the purposes of:                (1)  [Article 102.022(a), Code of Criminal Procedure;                [(2)]  Section 1001.112(b)(4) [1001.112(a-2)],   Education Code;                (2) [(3)]  Section 411.110(f), Government Code; and                (3) [(4)]  Sections 773.0614(b) and 773.06141(a),   Health and Safety Code.          SECTION 4.67.  The following provisions are repealed:                (1)  Article 45.0511(u), Code of Criminal Procedure;                (2)  Sections 1001.001(4), (7), (10), and (11),   Education Code;                (3)  Sections 1001.056(a) and (f), Education Code;                (4)  Section 1001.1015(c), Education Code;                (5)  Sections 1001.103 and 1001.111, Education Code;                (6)  Section 1001.151(e), Education Code;                (7)  Sections 1001.205 and 1001.208, Education Code;                (8)  Section 1001.251(b), Education Code;                (9)  Section 1001.2531(a), Education Code;                (10)  Sections 1001.2532, 1001.2533, 1001.2534,   1001.2535, 1001.303, 1001.304, 1001.354, 1001.3541, and 1001.3542,   Education Code;                (11)  the heading to Subchapter K, Chapter 1001,   Education Code;                (12)  Section 545.412(g), Transportation Code; and                (13)  Section 545.413(i), Transportation Code.          SECTION 4.68.  On December 1, 2021:                (1)  the terms of members serving on the driver   training and traffic safety advisory committee under Section   1001.058, Education Code, immediately before that date expire; and                (2)  the presiding officer of the Texas Commission of   Licensing and Regulation shall appoint members of the driver   training and traffic safety advisory committee having   qualifications that correspond as closely as possible to the   qualifications provided under the changes in law made by this Act to   Section 1001.058, Education Code, with initial terms as follows:                      (A)  three members to terms expiring February 1,   2023;                      (B)  three members to terms expiring February 1,   2025; and                      (C)  three members to terms expiring February 1,   2027.          SECTION 4.69.  Not later than June 1, 2023, the Texas   Department of Licensing and Regulation and the Department of Public   Safety of the State of Texas shall enter into the memorandum of   understanding required by Section 1001.060, Education Code, as   added by this article.          SECTION 4.70.  (a) Not later than June 1, 2023, the Texas   Commission of Licensing and Regulation shall adopt rules necessary   to implement the changes in law made by this article to Chapter   1001, Education Code.          (b)  A driver education school license, driving safety   school license, or course provider license issued under Chapter   1001, Education Code, before the date the Texas Department of   Licensing and Regulation implements the changes described in   Subsection (a) of this section continues to be valid until the date   the license expires.  On expiration of that license, the license   holder shall apply for a new license under Chapter 1001, Education   Code, as amended by this article, to continue to provide services   for which a license is required by that chapter.          (c)  Notwithstanding Chapter 1001, Education Code, as   amended by this article, a person who provides driver education   course materials to persons conducting parent-taught driver   education under Section 1001.112, Education Code, as amended by   this article, is not required to hold a parent-taught driver   education provider license under Chapter 1001, Education Code,   before November 1, 2023.          SECTION 4.71.  The changes in law made by this article to   Section 106.115, Alcoholic Beverage Code, and Article 45.051, Code   of Criminal Procedure, with respect to participation in a   court-ordered program or course, apply to a court order entered on   or after September 1, 2021. A court order entered before that date   is governed by the law in effect on the date the order was entered,   and the former law is continued in effect for that purpose.          SECTION 4.72.  To the extent of any conflict, this article   prevails over another Act of the 87th Legislature, Regular Session,   2021, relating to nonsubstantive additions to and corrections in   enacted codes.   ARTICLE 5. RESIDENTIAL SERVICE CONTRACTS          SECTION 5.01.  Section 1101.006, Occupations Code, is   amended to read as follows:          Sec. 1101.006.  APPLICATION OF SUNSET ACT. The Texas Real   Estate Commission is subject to Chapter 325, Government Code (Texas   Sunset Act). Unless continued in existence as provided by that   chapter, the commission is abolished and this chapter and [,]   Chapter 1102[, and Chapter 1303] of this code and Chapter 221,   Property Code, expire September 1, 2025.          SECTION 5.02.  Section 1304.003(a), Occupations Code, is   amended by amending Subdivision (2) and adding Subdivision (4) to   read as follows:                (2)  "Service contract" means an agreement that is   entered into for a separately stated consideration and for a   specified term under which a provider agrees to:                      (A)  repair, replace, or maintain a product, or   provide indemnification for the repair, replacement, or   maintenance of a product, for operational or structural failure or   damage caused by a defect in materials or workmanship or by normal   wear;                      (B)  provide identity recovery, if the service   contract is financed under Chapter 348 or 353, Finance Code; [or]                      (C)  provide compensation to the buyer of a   vehicle on the total constructive loss under a depreciation benefit   optional member program; or                      (D)  provide a service, reimbursement, or payment   under a residential service contract.                (4)  "Residential service contract" means a service   contract of any duration under which a provider agrees to, in the   event of the operational or structural failure of, damage caused by   a power surge to, a defect in materials or workmanship of, or damage   caused by normal wear to a structural component, an appliance, or an   electrical, plumbing, heating, cooling, or air-conditioning system   of a residential property that is attached to or located on the   residential property:                      (A)  service, maintain, repair, or replace all or   any part of the structural component, appliance, or electrical,   plumbing, heating, cooling, or air-conditioning system;                      (B)  provide incidental payment of indemnity   under limited circumstances, including food spoilage; or                      (C)  provide reimbursement or payment instead of   service, repair, or replacement when a part, structural component,   appliance, or service provider or technician is unavailable.          SECTION 5.03.  Section 1304.003(b), Occupations Code, is   amended to read as follows:          (b)  A service contract described by Subsection (a)(2)(A)   may [also] provide for:                (1)  incidental payment or indemnity under limited   circumstances, including towing, rental, and emergency road   service;                (2)  the repair or replacement of a product for damage   resulting from a power surge or for accidental damage incurred in   handling the product;                (3)  identity recovery, if the service contract is   financed under Chapter 348 or 353, Finance Code; or                (4)  the replacement of a motor vehicle key or key fob   in the event the key or key fob is inoperable, lost, or stolen.          SECTION 5.04.  Section 1304.004(b), Occupations Code, is   amended to read as follows:          (b)  This chapter does not apply to:                (1)  a warranty;                (2)  a maintenance agreement;                (3)  a service contract sold or offered for sale to a   person who is not a consumer;                (4)  [a residential service contract sold by an entity   licensed by the Texas Real Estate Commission under Chapter 1303;                [(5)] an agreement issued by an automobile service club   that holds a certificate of authority under Chapter 722,   Transportation Code;                (5) [(6)]  a service contract sold by a motor vehicle   dealer on a motor vehicle sold by that dealer, if the dealer:                      (A)  is the provider;                      (B)  is licensed as a motor vehicle dealer under   Chapter 2301; and                      (C)  covers its obligations under the service   contract with a reimbursement insurance policy; or                (6) [(7)]  a contract offered by a local exchange   telephone company that provides for the repair of inside telephone   wiring, if:                      (A)  the contract term does not exceed one month;   and                      (B)  the consumer can terminate the contract   before a new contract term begins without liability except for   payment of charges for the term that has begun.          SECTION 5.05.  Subchapter A, Chapter 1304, Occupations Code,   is amended by adding Section 1304.0041 to read as follows:          Sec. 1304.0041.  CERTAIN EXEMPT AGREEMENTS. This chapter   does not apply to:                (1)  a performance guarantee offered by:                      (A)  the builder of a residential property; or                      (B)  the manufacturer or seller of an appliance or   other system or component of a residential property;                (2)  a residential service contract executed before   August 28, 1979;                (3)  a guarantee or warranty that is:                      (A)  designed to guarantee or warrant the repair   or service of an appliance, system, or component of a residential   property; and                      (B)  issued by a person who sells, services,   repairs, or replaces the appliance, system, or component at the   time or before the guarantee or warranty is issued;                (4)  a service or maintenance agreement or a warranty   that:                      (A)  is sold, offered for sale, or issued by a   manufacturer or merchant who manufactures or sells a product or   part of a product, including a structural component, an appliance,   or an electrical, plumbing, heating, cooling, or air-conditioning   system of a building or residence; and                      (B)  provides for, warrants, or guarantees the   maintenance, repair, replacement, or performance of the product or   part of the product; or                (5)  home warranty insurance as defined by Section   2005.001, Insurance Code.          SECTION 5.06.  Section 1304.005, Occupations Code, is   amended to read as follows:          Sec. 1304.005.  EXEMPTIONS FROM CERTAIN OTHER LAWS.   Marketing, selling, offering for sale, issuing, making, proposing   to make, and administering a service contract are exempt from:                (1)  [Chapter 1303;                [(2)] Chapter 722, Transportation Code; and                (2) [(3)]  the Insurance Code and other laws of this   state regulating the business of insurance.          SECTION 5.07.  Section 1304.151, Occupations Code, is   amended by amending Subsection (b) and adding Subsection (b-4) to   read as follows:          (b)  If the provider ensures its obligations under   Subsection (a)(2), the amount maintained in the reserve account may   not be less than an amount equal to 40 percent of the gross   consideration the provider received from consumers from the sale of   all service contracts issued and outstanding in this state, minus   any claims paid. The executive director may review and examine the   reserve account. Except as provided by Subsections [Subsection]   (b-1) and (b-4), the amount of the security deposit may not be less   than $250,000. The provider must submit to the executive director   on request a copy of the provider's financial statements that must   be prepared in accordance with generally accepted accounting   principles, be without qualification as to the going concern status   of the provider, and be audited by an independent certified public   accountant. The commission by rule may require the provider to   submit additional financial reports.          (b-4)  The amount of the security deposit required under   Subsection (b) may not be less than $25,000 for a provider of a   residential service contract.          SECTION 5.08.  Section 1304.156, Occupations Code, is   amended by adding Subsection (f) to read as follows:          (f)  A residential service contract must state that the   provider agrees that, under normal circumstances, the provider will   initiate the performance of services not later than 48 hours after   the contract holder requests the services.          SECTION 5.09.  Subchapter D, Chapter 1304, Occupations Code,   is amended by adding Section 1304.157 to read as follows:          Sec. 1304.157.  RESIDENTIAL SERVICE CONTRACTS. (a) A   person may not sell, offer to sell, arrange or solicit the sale of,   or receive an application for a residential service contract unless   the person is:                (1)  employed by a provider or administrator of a   residential service contract who is licensed under this chapter; or                (2)  licensed as a real estate sales agent, real estate   broker, mobile home dealer, or insurance agent in this state.          (b)  Notwithstanding Subsection (a), a person compensated by   a provider or administrator, but who is not employed by that   provider or administrator, may sell, offer to sell, arrange or   solicit the sale of, or receive an application for a residential   service contract if the contract contains the following statement   in at least 10-point boldface type: "NOTICE: THIS COMPANY PAYS   PERSONS NOT EMPLOYED BY THE PROVIDER FOR THE SALE, ADVERTISING,   INSPECTION, OR PROCESSING OF A RESIDENTIAL SERVICE CONTRACT UNDER   CHAPTER 1304, OCCUPATIONS CODE." For purposes of Subsection (a) and   this subsection, a person is employed by a provider or   administrator if, in connection with the person selling, offering   to sell, arranging or soliciting the sale of, or receiving   applications for residential service contracts, the provider or   administrator:                (1)  directs and controls the person's performance; and                (2)  is responsible for representations made by the   person when acting within the scope of the person's employment.          (c)  Notwithstanding Section 1304.151(a)(1), a provider of a   residential service contract may use a reimbursement insurance   policy issued by a captive insurance company as defined by Section   964.001, Insurance Code, to insure the provider's residential   service contracts if the provider maintains a funded reserve equal   to not less than 25 percent of the gross consideration the provider   received from consumers from the sale of all the provider's service   contracts issued and outstanding in this state, minus any claims   paid. A reimbursement insurance policy issued to a residential   service contract provider in accordance with this subsection:                (1)  is not subject to Section 1304.152; and                (2)  is considered to satisfy the requirements of   Sections 1304.1025 and 1304.151(a)(1) for purposes of this chapter.          SECTION 5.10.  Chapter 1303, Occupations Code, is repealed.          SECTION 5.11.  Not later than June 1, 2022, the Texas   Commission of Licensing and Regulation shall adopt rules necessary   to implement the changes in law made by this article to Chapter   1304, Occupations Code.          SECTION 5.12.  (a) A residential service company licensed   under former Chapter 1303, Occupations Code, that on May 1, 2021,   maintained security in accordance with former Section 1303.154,   Occupations Code, shall continue to maintain security in an amount   not less than the amount required under that section until   September 1, 2026, and the former law is continued in effect for   that purpose.          (b)  A residential service company described by Subsection   (a) of this section that is operating as a residential service   contract provider licensed under Chapter 1304, Occupations Code, as   amended by this article, is not required to comply with the security   requirements for residential service contract providers under   Chapter 1304, Occupations Code, as amended by this article, until   September 1, 2026.          (c)  Not later than September 1, 2022, a residential service   company described by Subsection (a) of this section that is   operating as a residential service contract provider licensed under   Chapter 1304, Occupations Code, as amended by this article, shall   update the company's financial security documents to:                (1)  list the Texas Department of Licensing and   Regulation as a party to the financial security document; and                (2)  replace each reference to the Texas Real Estate   Commission with a reference to the Texas Department of Licensing   and Regulation.          SECTION 5.13.  (a) In this section, "department" means the   Texas Department of Licensing and Regulation.          (b)  On September 1, 2021:                (1)  a license issued by the Texas Real Estate   Commission under former Chapter 1303, Occupations Code, is   continued in effect as a license of the department;                (2)  all rules, fees, policies, procedures, decisions,   and forms of the Texas Real Estate Commission that relate to a   program or activity transferred under this article are continued in   effect as rules, fees, policies, procedures, decisions, and forms   of the Texas Commission of Licensing and Regulation or the   department, as applicable, and remain in effect until changed by   the Texas Commission of Licensing and Regulation or the department;   and                (3)  a complaint, investigation, contested case, or   other proceeding related to a program that is transferred under   this article and that is pending on September 1, 2021, is   transferred without change in status to the Texas Commission of   Licensing and Regulation or the department, as appropriate.          (c)  On September 1, 2021:                (1)  all money, contracts, leases, property, software   source code and documentation, records, and obligations of the   Texas Real Estate Commission relating to a program or activity   transferred to the department under this article are transferred to   the department; and                (2)  the unexpended and unobligated balance of any   money appropriated by the legislature relating to that program or   activity is transferred to the department.          (d)  As soon as practicable after September 1, 2021, the   Texas Real Estate Commission shall transfer to the Texas Commission   of Licensing and Regulation or the department, as appropriate, any   bond, reimbursement insurance policy, or other security held for a   residential service company that relates to a program or activity   transferred under this article.          (e)  Unless the context indicates otherwise, a reference in   law or administrative rule to the Texas Real Estate Commission with   respect to a program or activity transferred from the Texas Real   Estate Commission to the department under this article means the   Texas Commission of Licensing and Regulation or the department, as   appropriate.          (f)  The Texas Real Estate Commission shall provide the   department with access to any systems, facilities, or information   necessary to implement the change in law made by this article.   ARTICLE 6. SPEECH-LANGUAGE PATHOLOGISTS AND AUDIOLOGISTS          SECTION 6.01.  Section 401.304(a), Occupations Code, is   amended to read as follows:          (a)  To be eligible for licensing as a speech-language   pathologist or audiologist, an applicant must:                (1)  if the application is for a license in:                      (A)  speech-language pathology, possess at least   a master's degree with a major in at least one of the areas of   communicative sciences or disorders from a program accredited by a   national accrediting organization that is approved by the   commission or department and recognized by the United States   secretary of education under the Higher Education Act of 1965 (20   U.S.C. Section 1001 et seq.) in an accredited or approved college or   university; or                      (B)  audiology, possess at least a master's   [doctoral] degree in audiology or a related hearing science from a   program accredited by a national accrediting organization that is   approved by the commission or department and recognized by the   United States secretary of education under the Higher Education Act   of 1965 (20 U.S.C. Section 1001 et seq.) in an accredited or   approved college or university;                (2)  submit a transcript from a public or private   institution of higher learning showing successful completion of   course work in amounts set by the commission by rule in:                      (A)  normal development and use of speech,   language, and hearing;                      (B)  evaluation, habilitation, and rehabilitation   of speech, language, and hearing disorders; and                      (C)  related fields that augment the work of   clinical practitioners of speech-language pathology and audiology;                (3)  have successfully completed at least 36 semester   hours in courses that are acceptable toward a graduate degree by the   college or university in which the courses are taken, at least 24 of   which must be in the professional area for which the license is   requested;                (4)  have completed the minimum number of hours,   established by the commission by rule, of supervised clinical   experience with persons who present a variety of communication   disorders; and                (5)  have completed the full-time supervised   professional experience, as defined by commission rule, in which   clinical work has been accomplished in the major professional area   for which the license is being sought.          SECTION 6.02.  Section 401.304(a), Occupations Code, as   amended by this article, applies only to a license application   submitted on or after September 1, 2021. A license application   submitted before that date is governed by the law in effect on the   date the license application was submitted, and the former law is   continued in effect for that purpose.   ARTICLE 7. REGULATION OF RACING          SECTION 7.01.  Subchapter C, Chapter 51, Occupations Code,   is amended by adding Section 51.1041 to read as follows:          Sec. 51.1041.  PEACE OFFICERS. (a) The department may   commission as a peace officer an employee who has been certified as   qualified to be a peace officer by the Texas Commission on Law   Enforcement.          (b)  A peace officer commissioned by the department may   enforce any provision of this chapter relating to the regulation of   racing or any law establishing a program regulated by the   department under Subtitle A-1, Title 13, related to the regulation   of racing.          (c)  A peace officer commissioned under this section has the   powers, privileges, and immunities of a peace officer while   carrying out duties authorized by this chapter or a law   establishing a program regulated by the department.          SECTION 7.02.  Section 2021.003, Occupations Code, is   amended by amending Subdivisions (2), (8), (9), (14), (20), (21),   (24), (35), and (54) and adding Subdivisions (2-a) and (12-a) to   read as follows:                (2)  "Active license" means a racetrack license   designated by the department [commission] as active.                (2-a)  "Advisory board" means the Texas Racing Advisory   Board.                (8)  "Commission" means the Texas [Racing] Commission   of Licensing and Regulation.                (9)  "Concessionaire" means a person licensed by the   department [commission] to sell refreshments or souvenirs at a   racetrack.                (12-a) "Department" means the Texas Department of   Licensing and Regulation.                (14)  "Executive director" means the executive   director of the department [commission].                (20)  "Horsemen's organization" means an organization   recognized by the department [commission] that:                      (A)  represents horse owners and trainers in   negotiating and contracting with racetrack associations on   subjects relating to racing; and                      (B)  represents and advocates the interests of   horse owners and trainers before administrative, legislative, and   judicial forums.                (21)  "Inactive license" means a racetrack license   designated by the department [commission] as inactive.                (24)  "Maiden" means a horse that has never won a race   at a race meeting authorized by the department [commission] or by   another racing jurisdiction.                (35)  "Performance" means the consecutive running of a   specified number of greyhound races as determined by the department   [commission].                (54)  "Trainer" means a person who is licensed by the   department [commission] to train horses or greyhounds.          SECTION 7.03.  Sections 2021.004(1) and (5), Occupations   Code, are amended to read as follows:                (1)  "Authorized agent" means a person appointed by an   owner of a horse to represent the owner. The term is limited to a   person who is appointed by a written instrument that the department   [commission] acknowledges and approves.                (5)  "Jockey" or "apprentice jockey" means a   professional rider licensed by the department [commission] to ride   in horse races.          SECTION 7.04.  Section 2021.006, Occupations Code, is   amended to read as follows:          Sec. 2021.006.  RELEASE OF CIVIL LIABILITY.  A commission   member, the executive director, a department [commission]   employee, a steward or judge, a racetrack association, a horsemen's   organization, or any other person regulated under this subtitle is   not liable for a cause of action that arises out of that person's   performance or exercise of discretion in the implementation or   enforcement of this subtitle or a rule adopted under this subtitle   if the person has acted in good faith.          SECTION 7.05.  Sections 2021.008(a), (b), (c), and (d),   Occupations Code, are amended to read as follows:          (a)  The advisory board [commission] is subject to Chapter   325, Government Code (Texas Sunset Act). The advisory board shall   be reviewed during the period in which the commission and   department are reviewed under Section 51.002. Unless the advisory   board is continued in existence and the commission and department   are continued in existence as provided by that section, [chapter,]   and except as provided by Subsections (b) and (c), [the commission   is abolished and] this subtitle expires on the date provided by that   section [September 1, 2021].          (b)  If, at the time the commission, department, and advisory   board would be abolished under Subsection (a), a racetrack   association has outstanding long-term liabilities:                (1)  the racetrack association may continue to operate   for a period not to exceed one year after those liabilities are   satisfied; and                (2)  the commission, the department, and this subtitle   are continued in effect for the purpose of regulating that   racetrack association under this subtitle.          (c)  If the commission, the department, and this subtitle are   continued in effect under Subsection (b), the commission and the   department are [is] abolished and this subtitle expires on the   first day of the state fiscal year following the state fiscal year   in which the commission certifies to the secretary of state that no   racetrack associations are operating under the terms of Subsection   (b).          (d)  A racetrack association that continues to operate under   Subsection (b) may not incur any new liability without commission   or department approval. At the beginning of that period, the   commission or department shall:                (1)  review the outstanding liabilities of the   racetrack association; and                (2)  set a specific date by which the racetrack   association must retire its outstanding liabilities.          SECTION 7.06.  The heading to Chapter 2022, Occupations   Code, is amended to read as follows:   CHAPTER 2022. TEXAS RACING ADVISORY BOARD [COMMISSION]          SECTION 7.07.  The heading to Section 2022.001, Occupations   Code, is amended to read as follows:          Sec. 2022.001.  ADVISORY BOARD [COMMISSION] MEMBERSHIP.          SECTION 7.08.  Section 2022.001(a), Occupations Code, is   amended to read as follows:          (a)  The Texas Racing Advisory Board [commission] consists   of 11 [:                [(1)  seven] members appointed by the presiding officer   of the commission, with commission approval, as follows:                (1)  one member who is a representative of a racetrack   association holding a class 1 racetrack license;                (2)  one member who is a representative of a racetrack   association holding a class 2 racetrack license;                (3)  one member who is a representative of a racetrack   association holding a class 3 racetrack license;                (4)  one member who is a representative of a racetrack   association holding a greyhound racetrack license;                (5)  one member who is a representative of the Texas   Horsemen's Partnership;                (6)  one member who is a representative of the Texas   Thoroughbred Association;                (7)  one member who is a representative of the Texas   Quarter Horse Association;                (8)  one member who is a representative of the Texas   Greyhound Association;                (9)  one member who is a veterinarian; and                (10)  two members of the public [governor with the   advice and consent of the senate; and                [(2)  two ex officio members who have the right to   vote].          SECTION 7.09.  Subchapter A, Chapter 2022, Occupations Code,   is amended by adding Section 2022.0011 to read as follows:          Sec. 2022.0011.  DUTIES OF ADVISORY BOARD. The advisory   board shall provide advice and recommendations to the department on   technical matters relevant to the administration of this subtitle.          SECTION 7.10.  The heading to Section 2022.002, Occupations   Code, is amended to read as follows:          Sec. 2022.002.  TERM OF OFFICE; VACANCIES.          SECTION 7.11.  Section 2022.002, Occupations Code, is   amended by amending Subsection (a) and adding Subsection (c) to   read as follows:          (a)  Advisory board [Appointed commission] members hold   office for staggered terms of six years with the terms of [two or]   three members expiring February 1 of each odd-numbered year.          (c)  If a vacancy occurs during a member's term, the   presiding officer of the commission, with commission approval,   shall appoint a member to fill the vacancy for the remainder of the   unexpired term.          SECTION 7.12.  Section 2022.008, Occupations Code, is   amended to read as follows:          Sec. 2022.008.  PRESIDING OFFICER.  (a) The presiding   officer of the commission [governor] shall designate a [public]   member of the advisory board [commission] as the presiding officer   of the advisory board [commission] to serve in that capacity for a   one-year term [at the pleasure of the governor].          (b)  The presiding officer of the advisory board may vote on   any matter before the advisory board.          SECTION 7.13.  The heading to Section 2022.009, Occupations   Code, is amended to read as follows:          Sec. 2022.009.  ADVISORY BOARD [COMMISSION] MEETINGS [;   RECORD OF COMMISSION VOTES].          SECTION 7.14.  Section 2022.009(a), Occupations Code, is   amended to read as follows:          (a)  The advisory board [commission] shall meet at the call   of the presiding officer of the commission or the executive   director [hold at least six regular meetings each year on dates   fixed by the commission].          SECTION 7.15.  The heading to Section 2022.052, Occupations   Code, is amended to read as follows:          Sec. 2022.052.  [EMPLOYEES;] RESTRICTIONS ON EMPLOYMENT.          SECTION 7.16.  Section 2022.052(c), Occupations Code, is   amended to read as follows:          (c)  The commission or department may not employ or continue   to employ a person who:                (1)  owns or controls a financial interest in a   [commission] license holder under this subtitle;                (2)  is employed by or serves as a paid consultant to a   [commission] license holder under this subtitle, an official state   breed registry, or a Texas trade association, as defined by Section   51.0535(a) [2022.004(a)], in the field of horse or greyhound racing   or breeding;                (3)  owns or leases a race animal that participates in   pari-mutuel racing in this state;                (4)  accepts or is entitled to any part of the purse or   Texas-bred incentive award to be paid on a horse or a greyhound in a   race conducted in this state; or                (5)  resides with or is related within the first degree   by affinity or consanguinity to a person subject to a   disqualification prescribed by this subsection.          SECTION 7.17.  The heading to Section 2022.103, Occupations   Code, is amended to read as follows:          Sec. 2022.103.  DEPARTMENT [COMMISSION] INVESTIGATIVE FILES   CONFIDENTIAL.          SECTION 7.18.  Sections 2022.103(a), (b), and (c),   Occupations Code, are amended to read as follows:          (a)  The contents of the investigatory files of the   department [commission] are not public records and are confidential   except:                (1)  in a criminal proceeding;                (2)  in a hearing conducted by the State Office of   Administrative Hearings or the commission;                (3)  on court order; or                (4)  with the consent of the party being investigated.          (b)  Except as otherwise provided by this subtitle, the   files, records, information, compilations, documents, photographs,   reports, summaries, and reviews of information and related matters   that are collected, retained, or compiled by the Department of   Public Safety in the discharge of the Department of Public Safety's   [department's] duties under this subtitle are confidential and are   not subject to public disclosure, but are subject to discovery by a   person who is the subject of the files, records, information,   compilations, documents, photographs, reports, summaries, and   reviews of information and related matters that are collected,   retained, or compiled by the Department of Public Safety   [department] in the discharge of the Department of Public Safety's   [department's] duties under this subtitle.          (c)  An investigation report or other document submitted by   the Department of Public Safety to the department [commission]   becomes part of the investigative files of the department   [commission] and is subject to discovery by a person who is the   subject of the investigation report or other document submitted by   the Department of Public Safety [department] to the department   [commission] that is part of the investigative files of the   department [commission].          SECTION 7.19.  Section 2022.105(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] shall require racetrack   associations, managers, totalisator license holders, and   concessionaires to keep books and records and to submit financial   statements to the department [commission].          SECTION 7.20.  The heading to Chapter 2023, Occupations   Code, is amended to read as follows:   CHAPTER 2023. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL   POWERS AND DUTIES          SECTION 7.21.  Section 2023.001, Occupations Code, is   amended to read as follows:          Sec. 2023.001.  LICENSING, REGULATION, AND SUPERVISION OF   HORSE RACING AND GREYHOUND RACING. (a) Notwithstanding any   contrary provision in this subtitle, the department under the   direction of the commission may license and regulate all aspects of   horse racing and greyhound racing in this state, regardless of   whether that racing involves pari-mutuel wagering.          (b)  The commission[,] in adopting rules and the department   in the supervision and conduct of racing [,] shall consider the   effect of a proposed [commission] action on the state's   agricultural, horse breeding, horse training, greyhound breeding,   and greyhound training industry.          SECTION 7.22.  Section 2023.002, Occupations Code, is   amended to read as follows:          Sec. 2023.002.  REGULATION AND SUPERVISION OF WAGERING AT   RACE MEETINGS. (a) The department [commission] shall regulate and   supervise each race meeting in this state that involves wagering on   the result of horse racing or greyhound racing. Each person and   thing relating to the operation of a race meeting is subject to   regulation and supervision by the department [commission].          (b)  The commission shall adopt rules on the issuance of   licenses and other rules necessary to regulate horse racing and   greyhound racing and the department shall [,] issue licenses[,] and   take any other necessary action relating [exclusively] to the   regulation of horse racing or greyhound racing.          SECTION 7.23.  Section 2023.003(b), Occupations Code, is   amended to read as follows:          (b)  The department [commission] may charge in the amount set   by the commission an annual fee for licensing and regulating a track   that does not offer pari-mutuel wagering or a training facility in a   reasonable amount that may not exceed the actual cost of enforcing   rules adopted by the commission for the licensing and regulation of   races and workouts at such a facility.          SECTION 7.24.  Section 2023.004(d), Occupations Code, is   amended to read as follows:          (d)  The department [commission] shall post at each   racetrack notice of a meeting of the commission [under Subsection   (c)] that includes an agenda of the meeting and a summary of the   proposed rule.          SECTION 7.25.  Section 2023.006, Occupations Code, is   amended to read as follows:          Sec. 2023.006.  CONSIDERATION OF PAST PERFORMANCE OF   RACETRACK ASSOCIATION.  In considering a pleading of a racetrack   association, the department [commission] shall take into account   the operating experience of the racetrack association in this   state, including:                (1)  the financial condition of the racetrack;                (2)  the regulatory compliance and conduct; and                (3)  any other relevant matter concerning the operation   of a racetrack.          SECTION 7.26.  Section 2023.007, Occupations Code, is   amended to read as follows:          Sec. 2023.007.  RIGHT OF ENTRY.  A commission member, a   department employee, an authorized department [commission] agent   or peace officer, a commissioned officer of the Department of   Public Safety, or a peace officer of the local jurisdiction in which   a racetrack association maintains a place of business may enter any   part of a racetrack or any other place of business of a racetrack   association at any time to enforce and administer this subtitle.          SECTION 7.27.  Section 2023.008, Occupations Code, is   amended to read as follows:          Sec. 2023.008.  TESTIMONY AND SUBPOENA POWER. (a) For   purposes of this section, "agent" means an appointed agent of the   department [commission].          (b)  A department employee [commission member] or an agent,   while involved in carrying out functions under this subtitle, may:                (1)  take testimony;                (2)  require by subpoena the attendance of a witness;   and                (3)  require the production of books, records, papers,   correspondence, and other documents that the commission considers   advisable.          (c)  A subpoena must be issued under the signature of the   executive director or the executive director's designee   [commission or an agent]. A person designated by the executive   director [commission] must serve the subpoena.          (d)  A department employee [commission member] or an agent   may administer an oath to a witness appearing before the department   [commission] or an agent.          (e)  If a subpoena issued under this section is disobeyed,   the department [commission] or an agent may invoke the aid of a   Travis County district court in requiring compliance with the   subpoena. A Travis County district court may issue an order   requiring the person to appear and testify and to produce books,   records, papers, correspondence, and documents. Failure to obey   the court order shall be punished by the court as contempt.          SECTION 7.28.  Sections 2023.051 and 2023.052, Occupations   Code, are amended to read as follows:          Sec. 2023.051.  RECOGNITION OF ORGANIZATION. (a) The   commission by rule shall adopt criteria to recognize an   organization to represent members of a segment of the racing   industry, including owners, breeders, trainers, kennel operators,   or other persons involved in the racing industry, in any   interaction between the members of the organization and a racetrack   association or the department [commission].          (b)  The department [commission] may recognize an   organization that meets the criteria adopted under Subsection (a).          Sec. 2023.052.  SECURITY FOR FEES AND CHARGES. The   department [commission] may require a racetrack association to post   security in an amount and form determined by the department   [commission] to adequately ensure the payment of any fee or charge   due to this state or the department [commission] relating to   pari-mutuel racing, including a charge for drug testing.          SECTION 7.29.  Section 2023.053(f), Occupations Code, is   amended to read as follows:          (f)  This section does not apply to:                (1)  money deposited into the Texas-bred incentive fund   established under Section 2028.301; or                (2)  an administrative penalty remitted to the   comptroller for deposit in the general revenue fund under Section   2033.058.          SECTION 7.30.  The heading to Section 2023.054, Occupations   Code, is amended to read as follows:          Sec. 2023.054.  [COMMISSION] STANDARDS ON GREYHOUND FARMS   AND FACILITIES.          SECTION 7.31.  Sections 2023.056, 2023.057, 2023.058,   2023.059, and 2023.061, Occupations Code, are amended to read as   follows:          Sec. 2023.056.  COOPERATION WITH LAW ENFORCEMENT. (a) The   department [commission] shall cooperate with a district attorney, a   criminal district attorney, a county attorney, the Department of   Public Safety, the attorney general, or a peace officer in   enforcing this subtitle.          (b)  The department [commission], under department   [commission] authority to obtain criminal history record   information under Section 2023.057, shall maintain and exchange   pertinent intelligence data with other states and agencies.          Sec. 2023.057.  ACCESS TO CRIMINAL HISTORY RECORDS.  The   department [commission] may obtain criminal history record   information that relates to each applicant for [employment by the   commission and to each applicant for] a license issued under this   subtitle by the department, including an occupational license   described by Section 2025.251(c), [commission] and that is   maintained by the Department of Public Safety or the Federal Bureau   of Investigation Identification Division. The department   [commission] may refuse to issue a license to [recommend] an   applicant who fails to provide a complete set of fingerprints.          Sec. 2023.058.  COST OF CRIMINAL HISTORY RECORD CHECK. (a)   The commission shall, in determining the amount of a license fee,   set the fee in at least an amount necessary to cover the cost to the   department of conducting a criminal history record check on a   license applicant.          (b)  The department [commission] shall reimburse the   Department of Public Safety for the cost of conducting a criminal   history record check under this subtitle.          Sec. 2023.059.  DISTANCE LEARNING. The department   [commission] may provide assistance to members of the racing   industry who are attempting to develop or implement adult, youth,   or continuing education programs that use distance learning.          Sec. 2023.061.  BIENNIAL [ANNUAL] REPORT. (a) Not later   than January 31 of each odd-numbered year, the department   [commission] shall file a report with the governor, lieutenant   governor, and speaker of the house of representatives.          (b)  The report must cover the operations of the department   under this subtitle [commission] and the condition of horse   breeding and racing and greyhound breeding and racing during the   preceding two-year period [previous year].          (c)  The department [commission] shall obtain from the   Department of Public Safety a comprehensive report of any organized   crime activities in this state [that the department may wish to   report] and information concerning illegal gambling that may be   related to this subtitle known to exist in this state. The   department [commission] shall include in the biennial [annual]   report the Department of Public Safety's [department's] report and   any recommendations the department [commission] considers   appropriate.          SECTION 7.32.  Sections 2023.101(b), (c), and (d),   Occupations Code, are amended to read as follows:          (b)  The department [commission] shall employ or contract   with each steward and judge for the supervision of a horse race or   greyhound race meeting.          (c)  The department [commission] shall designate one steward   or judge, as appropriate, as the presiding steward or judge for each   race meeting.          (d)  Following the completion of a race meeting, a racetrack   association may submit to the department [commission] for the   department's [commission's] review written comments regarding the   job performance of the stewards and judges. A racetrack   association's comments submitted under this section are not   binding, in any way, on the department [commission].          SECTION 7.33.  Section 2023.102(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] shall require each steward   or judge to annually take and pass a written examination and a   medical examination.          SECTION 7.34.  Section 2023.103, Occupations Code, is   amended to read as follows:          Sec. 2023.103.  [EMPLOYMENT OF] STATE VETERINARIANS.  For   each race meeting, the department [commission] shall employ or   contract for at least one state veterinarian.          SECTION 7.35.  Section 2023.104(b), Occupations Code, is   amended to read as follows:          (b)  The fee amount for compensating each steward, judge, and   state veterinarian must be reasonable according to industry   standards for the compensation of those officials at other   racetracks and may not exceed the actual cost to the department   [commission] for compensating the officials.          SECTION 7.36.  Section 2023.105, Occupations Code, is   amended to read as follows:          Sec. 2023.105.  EMPLOYMENT OF OTHER RACETRACK OFFICIALS.     The racetrack association shall appoint, with the department's   [commission's] approval, all racetrack officials other than the   officials listed in Section 2023.104. Compensation for officials   not compensated by the department [commission] is determined by the   racetrack association.          SECTION 7.37.  Section 2023.106(b), Occupations Code, is   amended to read as follows:          (b)  The commission shall adopt rules that specify:                (1)  the power and duties of each race meeting   official, including the power of a steward or judge to impose   penalties for unethical practices or violations of racing rules;   and                (2)  procedures for hearings conducted under this   section.          SECTION 7.38.  Section 2023.109, Occupations Code, is   amended by adding Subsection (c) to read as follows:          (c)  The commission may adopt rules specifying the   requirements for appealing a decision and eligibility of orders for   consideration under this section.          SECTION 7.39.  Section 2024.002(a), Occupations Code, is   amended to read as follows:          (a)  The comptroller may inspect all books, records, and   financial statements required by the commission or obtained by the   department under Section 2022.105.          SECTION 7.40.  Sections 2024.053(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The comptroller shall certify to the department   [commission] the fact that a racetrack association or totalisator   company:                (1)  does not comply with a rule adopted by the   comptroller under this chapter;                (2)  refuses to allow access to or inspection of any of   the racetrack association's or totalisator company's required   books, records, or financial statements;                (3)  refuses to allow access to or inspection of the   totalisator system; or                (4)  becomes delinquent for:                      (A)  the state's share of a pari-mutuel pool; or                      (B)  any other tax collected by the comptroller.          (b)  With regard to the state's share of a pari-mutuel pool   and any penalty related to the state's share, the comptroller,   acting independently of the department [commission], may take any   collection or enforcement action authorized under the Tax Code   against a delinquent taxpayer.          SECTION 7.41.  Sections 2025.001 and 2025.002, Occupations   Code, are amended to read as follows:          Sec. 2025.001.  COMMISSION AND DEPARTMENT LICENSING DUTIES.   (a) To preserve and protect the public health, welfare, and safety,   the commission shall adopt rules relating to license applications   and the financial responsibility [, moral character,] and ability   of applicants.          (b)  The department [commission] shall prescribe application   forms for licenses issued under this subtitle and shall provide   each occupational license holder with a credential.          (c)  The commission shall [annually] prescribe reasonable   license fees for each category of license issued under this   subtitle.          (d)  The commission by rule shall set fees in amounts   reasonable and necessary to cover the department's [commission's]   costs of regulating, overseeing, and licensing live and simulcast   racing at racetracks.          Sec. 2025.002.  LICENSE AS PRIVILEGE.  The operation of a   racetrack and the participation in racing are privileges, not   rights, granted only by the department [commission] by license and   subject to reasonable and necessary conditions set by the   commission and department.          SECTION 7.42.  Sections 2025.003(a), (c), (d), and (e),   Occupations Code, are amended to read as follows:          (a)  An applicant for a license or license renewal under this   subtitle must, except as otherwise provided by Section 2025.261,   submit to the department [commission] a complete set of   fingerprints for:                (1)  the applicant; or                (2)  if the applicant is not an individual, each   officer or director of, and each person who owns at least a five   percent interest in, the applicant.          (c)  A peace officer of any state[,] or any department   employee designated by the executive director [district office of   the commission,] shall take the fingerprints of an applicant for a   license or license renewal on forms approved and furnished by the   Department of Public Safety and immediately deliver the forms to   the department [commission].          (d)  If a complete set of fingerprints is required by the   department [commission], the department [commission] shall, not   later than the 10th business day after the date the department   [commission] receives the fingerprints, forward the fingerprints   to the Department of Public Safety or the Federal Bureau of   Investigation. If the fingerprints are forwarded to the Department   of Public Safety, the Department of Public Safety [department]   shall:                (1)  classify the fingerprints and check the   fingerprints against the Department of Public Safety's   [department's] fingerprint files; and                (2)  report to the department [commission] the   Department of Public Safety's [department's] findings concerning   the existence or lack of a criminal record of the applicant.          (e)  The department [commission] may not issue a racetrack   license until the report under Subsection (d) is made to the   department [commission]. The department [commission] may issue a   temporary occupational license before the report is made to the   department [commission].          SECTION 7.43.  Section 2025.051, Occupations Code, is   amended to read as follows:          Sec. 2025.051.  RACETRACK LICENSE REQUIRED; CRIMINAL   PENALTY.  A person may not conduct wagering on a horse or greyhound   race meeting without first obtaining a racetrack license issued by   the department [commission]. A person who violates this section   commits an offense.          SECTION 7.44.  Sections 2025.052(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall require each   applicant for an original racetrack license to submit an   application, on a form prescribed by the department [commission],   containing the following information:                (1)  if the applicant is an individual:                      (A)  the individual's full name;                      (B)  the individual's date of birth;                      (C)  the individual's physical description;                      (D)  the individual's current address and   telephone number; and                      (E)  a statement by the individual disclosing any   arrest or conviction for a felony or for a misdemeanor, except a   misdemeanor under Subtitle C, Title 7, Transportation Code, or a   similar misdemeanor traffic offense;                (2)  if the applicant is a corporation:                      (A)  the state of incorporation;                      (B)  the names and addresses of the corporation's   agents for service of process in this state;                      (C)  the name and address of each officer and   director of the corporation;                      (D)  the name and address of each stockholder of   the corporation;                      (E)  for each individual named under this   subdivision, the information required by Subdivision (1); and                      (F)  identification of:                            (i)  any other beneficial owner of a share in   the applicant that has absolute or contingent voting rights;                            (ii)  any other person who directly or   indirectly exercises any participation in the applicant; and                            (iii)  any other ownership interest in the   applicant that the applicant making its best effort is able to   identify;                (3)  if the applicant is an unincorporated business   association:                      (A)  the name and address of each member of the   association and, for each individual named under this subdivision,   the information required by Subdivision (1); and                      (B)  identification of:                            (i)  any other person who exercises voting   rights in the applicant or directly or indirectly exercises any   participation in the applicant; and                            (ii)  any other ownership interest in the   applicant that the applicant making its best effort is able to   identify;                (4)  the exact location at which a race meeting is to be   conducted;                (5)  if the racetrack is in existence, whether it is   owned by the applicant and, if leased to the applicant:                      (A)  the name and address of the owner; and                      (B)  if the owner is a corporation or   unincorporated business association, the name and address of each   officer and director, any stockholder or member, and each agent for   service of process in this state;                (6)  if construction of the racetrack has not been   initiated, whether it is to be owned by the applicant and, if it is   to be leased to the applicant:                      (A)  the name and address of the prospective   owner; and                      (B)  if the owner is a corporation or   unincorporated business association, the information required by   Subdivision (5)(B);                (7)  identification of:                      (A)  any other beneficial owner of a share that   has absolute or contingent voting rights in the owner or   prospective owner of the racetrack;                      (B)  any other person that directly or indirectly   exercises any participation in the owner or prospective owner; and                      (C)  all other ownership interest in the owner or   prospective owner that the applicant making its best effort is able   to identify;                (8)  a detailed statement of the applicant's assets and   liabilities;                (9)  the type of racing to be conducted and the dates   requested;                (10)  proof of residency as required by Section   2025.201; and                (11)  any other information required by the department   [commission].          (b)  An application must be attested [sworn] to:                (1)  by the applicant; or                (2)  if the applicant is a corporation or association,   by its chief executive officer.          SECTION 7.45.  Sections 2025.053(a) and (c), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall require each   applicant for an original racetrack license to pay the required   application fee. The fee must accompany the application and be paid   in the form of a cashier's check, [or] certified check, or other   form of payment acceptable to the department.          (c)  Notwithstanding this section, if a licensed racetrack   petitions for a higher racetrack classification, the department   [commission] shall impose fees equal to the difference between the   fees previously paid and the fees required for the higher   classification.          SECTION 7.46.  Sections 2025.054(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall require each   applicant for an original racetrack license to submit with the   application for inspection and review by the department   [commission] a copy of each management, concession, and totalisator   contract associated with the proposed license at the proposed   location in which the applicant has an interest.          (b)  An applicant or license holder shall:                (1)  advise the department [commission] of any change   in any management, concession, or totalisator contract; and                (2)  at the request of the department, provide any   information the department considers necessary to review the   change.          SECTION 7.47.  Sections 2025.055 and 2025.056, Occupations   Code, are amended to read as follows:          Sec. 2025.055.  CONFIDENTIALITY OF APPLICATION DOCUMENTS.     Documents submitted to the department [commission] under Sections   2025.051-2025.054 by an applicant are subject to discovery in a   suit brought under this subtitle but are not public records and are   not subject to Chapter 552, Government Code.          Sec. 2025.056.  BACKGROUND CHECK. (a) The department   [commission] shall require a complete personal, financial, and   business background check of the applicant or of any person who owns   an interest in or exercises control over an applicant for a   racetrack license, including the partners, stockholders,   concessionaires, management personnel, management firms, and   creditors.          (b)  The department may [commission shall] refuse to issue or   renew a license or may revoke a license if [, in the commission's   sole discretion,] the background checks reveal anything that may be   detrimental to the public interest or the racing industry. A   proceeding under this section is subject to Subchapter G, Chapter   51.          (c)  The executive director [commission] may not hold a   hearing on the application, or any part of the application, of a   racetrack license applicant before the 14th day after the date the   completed background check of the applicant has been on file with   the department [commission].          SECTION 7.48.  Section 2025.057(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] may, at any time, require a   holder of or applicant for a racetrack license to post security in   an amount reasonably necessary, as provided by commission rule, to   adequately ensure the license holder's or applicant's compliance   with substantive requirements of this subtitle and commission   rules.          SECTION 7.49.  Section 2025.058, Occupations Code, is   amended to read as follows:          Sec. 2025.058.  NOTIFICATION OF COMPLETED APPLICATION.  When   all requirements for the applicant's licensure described in this   chapter have been satisfied, the department [commission] shall   notify the applicant that the application is complete.          SECTION 7.50.  Sections 2025.101(b), (c), (e), and (f),   Occupations Code, are amended to read as follows:          (b)  In considering an application for a horse racetrack   license under this chapter, the department [commission] shall give   additional weight to evidence concerning an applicant who has   experience operating a horse racetrack licensed under this   subtitle.          (c)  The department [commission] may not issue a license to   operate a class 1 or class 2 racetrack or a greyhound racetrack to a   corporation unless:                (1)  the corporation is incorporated under the laws of   this state; and                (2)  a majority of any of its corporate stock is owned   at all times by individuals who meet the residency qualifications   prescribed by Section 2025.201 for individual applicants.          (e)  Subsections (c) and (d) and Section 2025.201(a)(10)   [2025.201(a)(12)] do not apply to an applicant for or the holder of   a racetrack license if the applicant, the license holder, or the   license holder's parent company is a publicly traded company.          (f)  The department [commission] may condition the issuance   of a license under this chapter on the observance of commission   rules. [The commission may amend the rules at any time and may   condition the continued holding of the license on compliance with   the rules as amended.]          SECTION 7.51.  Section 2025.102, Occupations Code, is   amended to read as follows:          Sec. 2025.102.  QUALIFICATIONS FOR ISSUANCE OF RACETRACK   LICENSE. (a) The department [commission] may issue a racetrack   license to a qualified person if the department [commission]:                (1)  determines that the conduct of race meetings at   the proposed racetrack and location:                      (A)  will be in the public interest;                      (B)  complies with all zoning laws; and                      (C)  complies with this subtitle and commission   rules; and                (2)  determines by clear and convincing evidence that   the applicant will comply with all criminal laws of this state.          (b)  In determining whether to grant or deny an application   for any class of racetrack license, the department [commission] may   consider:                (1)  the applicant's financial stability;                (2)  the applicant's resources for supplementing the   purses for races for various breeds;                (3)  the location of the proposed racetrack;                (4)  the effect of the proposed racetrack on traffic   flow;                (5)  facilities for patrons and occupational license   holders;                (6)  facilities for race animals;                (7)  availability to the racetrack of support services   and emergency services;                (8)  the experience of the applicant's employees;                (9)  the potential for conflict with other licensed   race meetings;                (10)  the anticipated effect of the race meeting on the   horse or greyhound breeding industry in this state; and                (11)  the anticipated effect of the race meeting on the   state and local economy from tourism, increased employment, and   other sources.          (c)  The department [commission] shall make a determination   on a pending application not later than the 120th day after the date   the department [commission] provides the notice required under   Section 2025.058.          SECTION 7.52.  Sections 2025.103(a), (c), and (d),   Occupations Code, are amended to read as follows:          (a)  After a racetrack association has been granted a license   to operate a racetrack and before the completion of construction at   the designated place for which the license was issued, the   department [commission] may, on application by the racetrack   association, issue a temporary license that authorizes the   racetrack association to conduct races at a location in the same   county until the earlier of:                (1)  the second anniversary of the date of issuance of   the temporary license; or                (2)  the completion of the permanent facility.          (c)  The department [commission] may set conditions and   standards for issuance of a temporary license and allocation of   appropriate race days.          (d)  The department [commission] may not issue a new   temporary license or an extension of a temporary license to a person   or to an individual belonging to a corporation or association that   has been granted a temporary license after the temporary license   has expired.          SECTION 7.53.  Sections 2025.104(a), (b), and (d),   Occupations Code, are amended to read as follows:          (a)  The department [commission] shall designate each   racetrack license as an active license or an inactive license. The   department [commission] may change the designation of a racetrack   license as appropriate.          (b)  The department [commission] shall designate a racetrack   license as an active license if the license holder:                (1)  holds live racing events at the racetrack; or                (2)  makes good faith efforts to conduct live racing.          (d)  Before the first anniversary of the date a new racetrack   license is issued, the department [commission] shall conduct an   evaluation of the license to determine whether the license is an   active or inactive license.          SECTION 7.54.  Section 2025.105, Occupations Code, is   amended by amending Subsections (a), (b), (c), (d), and (e) and   adding Subsection (g) to read as follows:          (a)  The commission by rule shall establish an annual renewal   process for inactive licenses and may require the license holder to   provide any information required for an original license   application under this subtitle. An inactive license holder must   complete the annual renewal process established under this section   until the department [commission]:                (1)  designates the license as an active license; or                (2)  refuses to renew the license.          (b)  In determining whether to renew an inactive license, the   department [commission] shall consider:                (1)  the inactive license holder's:                      (A)  financial stability;                      (B)  ability to conduct live racing;                      (C)  ability to construct and maintain a   racetrack; and                      (D)  other good faith efforts to conduct live   racing; and                (2)  other necessary factors considered in the issuance   of the original license.          (c)  The department [commission] may refuse to renew an   inactive license if, after notice and opportunity for a hearing,   the department [commission] determines that:                (1)  renewal of the license is not in the best interests   of the racing industry or the public; or                (2)  the license holder has failed to make a good faith   effort to conduct live racing.          (d)  The department [commission] shall consult with the   advisory board, members of the racing industry, and other key   stakeholders in developing the license renewal process under this   section.          (e)  The commission shall set and the department shall    collect renewal fees in amounts reasonable and necessary to cover   the costs of administering and enforcing this section.          (g)  A proceeding under this section is a contested case for   purposes of Chapter 2001, Government Code.          SECTION 7.55.  Section 2025.106, Occupations Code, is   amended to read as follows:          Sec. 2025.106.  DEPARTMENT [COMMISSION] REVIEW OF ACTIVE   RACETRACK LICENSE; FEE. (a) The department [commission] shall   review the ownership and management of an active license issued   under this chapter every five years beginning on the fifth   anniversary of the date of issuance of the license.          (b)  In performing the review, the department [commission]   may require the license holder to provide any information that   would be required to be provided in connection with an original   license application under this chapter.          (c)  The department [commission] shall charge fees for the   review in amounts set by the commission as sufficient to implement   this section.          SECTION 7.56.  Section 2025.107(b), Occupations Code, is   amended to read as follows:          (b)  If the death of any person causes a violation of the   licensing provisions of this subtitle, the department [commission]   may issue, in accordance with commission rules, a temporary license   for a period not to exceed one year.          SECTION 7.57.  Sections 2025.108 and 2025.151, Occupations   Code, are amended to read as follows:          Sec. 2025.108.  RACETRACK LICENSE ANNUAL FEE.  The   commission may prescribe a reasonable annual fee to be paid to the   department by each racetrack license holder. The fee must be in an   amount sufficient to provide that the total amount of fees imposed   under this section, the license fees prescribed under Section   2025.001(c), and the renewal fees prescribed under Section   2025.105(e) are sufficient to cover the costs of administering and   enforcing this subtitle.          Sec. 2025.151.  LIMITATION ON NUMBER OF GREYHOUND RACETRACK   LICENSES.  The department [commission] may not issue licenses for   more than three greyhound racetracks in this state.          SECTION 7.58.  Section 2025.201, Occupations Code, is   amended by amending Subsections (a) and (c) and adding Subsection   (d) to read as follows:          (a)  The department [commission] may refuse to issue a   racetrack license or may revoke or suspend a license if, after   notice and opportunity for a hearing, the department [commission]   finds that the applicant or license holder, as appropriate:                (1)  has been convicted of a violation of this subtitle   or a commission rule, or has aided, abetted, or conspired to commit   a violation of this subtitle or a commission rule;                (2)  has been convicted of or placed on deferred   adjudication for a felony or misdemeanor [a crime involving moral   turpitude, including a conviction for which the punishment received   was a suspended sentence, probation, or a nonadjudicated   conviction,] that is reasonably related to the person's present   fitness to hold a license under this subtitle;                (3)  [has violated or has caused to be violated this   subtitle or a commission rule in a manner that involves moral   turpitude, as distinguished from a technical violation of this   subtitle or a rule;                [(4)]  is unqualified, by experience or otherwise, to   perform the duties required of a license holder under this   subtitle;                (4) [(5)]  failed to answer or falsely or incorrectly   answered a question in an application;                (5) [(6)]  fails to disclose the true ownership or   interest in a horse or greyhound as required by commission rules;                (6) [(7)]  is indebted to this state for any fee or for   the payment of a penalty imposed by this subtitle or a commission   rule;                (7)  has developed an incapacity that prevents or could   prevent the applicant or license holder from conducting the   applicant's or license holder's business with reasonable skill and   competence and in a manner that does not endanger public safety;                (8)  [is not of good moral character or the person's   reputation as a peaceable, law-abiding citizen in the community   where the person resides is bad;                [(9)]  is not at least the minimum age necessary to   purchase alcoholic beverages in this state;                (9) [(10)  is in the habit of using alcoholic beverages   to an excess or uses a controlled substance as defined by Chapter   481, Health and Safety Code, or a dangerous drug as defined in   Chapter 483, Health and Safety Code, or is mentally incapacitated;                [(11)]  may be excluded from an enclosure under this   subtitle;                (10) [(12)]  has not been a United States citizen   residing in this state for the 10 consecutive years preceding the   filing of the application;                (11) [(13)]  has improperly used a credential,   including a license certificate or identification card, issued   under this subtitle;                (12) [(14)]  resides with a person whose license was   revoked for cause during the 12 months preceding the date of the   present application;                (13) [(15)  has failed or refused to furnish a true   copy of the application to the commission's district office in the   district in which the premises for which the license is sought are   located;                [(16)]  is engaged or has engaged in activities or   practices the department [commission] determines are detrimental   to the best interests of the public and the sport of horse racing or   greyhound racing; or                (14) [(17)]  fails to fully disclose the true owners of   all interests, beneficial or otherwise, in a proposed racetrack.          (c)  The department [commission] may refuse to issue a   license or may suspend or revoke a license of a license holder under   this subchapter who knowingly or intentionally allows access to an   enclosure where horse races or greyhound races are conducted to a   person:                (1)  who has engaged in bookmaking, touting, or illegal   wagering;                (2)  whose income is from illegal activities or   enterprises; or                (3)  who has been convicted of a violation of this   subtitle.          (d)  A proceeding under this section is a contested case for   purposes of Chapter 2001, Government Code.          SECTION 7.59.  Section 2025.202(b), Occupations Code, is   amended to read as follows:          (b)  Notwithstanding the requirements of Section 2033.151,   if, after notice and opportunity for a hearing as provided by   Section 2033.152, the commission finds that a racetrack license   holder or a person employed by the racetrack has violated this   subtitle or a commission rule, or if the department [commission]   finds during a review or renewal that the racetrack is ineligible   for a license under this chapter, the commission may:                (1)  revoke, suspend, or refuse to renew the racetrack   license;                (2)  impose an administrative penalty as provided under   Section 2033.051; or                (3)  take any other action as provided by commission   rule.          SECTION 7.60.  Section 2025.203(a), Occupations Code, is   amended to read as follows:          (a)  The executive director [commission] may summarily   suspend a racetrack license if the executive director [commission]   determines that a racetrack at which races or pari-mutuel wagering   are conducted under the license is being operated in a manner that   constitutes an immediate threat to the health, safety, or welfare   of the racing participants or the patrons.          SECTION 7.61.  Section 2025.204(d), Occupations Code, is   amended to read as follows:          (d)  At the hearing, the department [commission] has the   burden of proof and must present evidence in support of the order.   The license holder requesting the hearing may cross-examine   witnesses and show cause why the order should not be affirmed.          SECTION 7.62.  Sections 2025.205, 2025.251, 2025.253,   2025.254, and 2025.255, Occupations Code, are amended to read as   follows:          Sec. 2025.205.  SUMMARY SUSPENSION FINAL ORDER. (a) After   the hearing on the suspension of a racetrack license, the   commission [executive director] shall affirm, modify, or set aside,   wholly or partly, the summary suspension order. An order affirming   or modifying the summary suspension order is final for purposes of   enforcement and appeal.          (b)  A final order under this section may be appealed in the   manner provided by Subchapter G, Chapter 2001, Government Code.          Sec. 2025.251.  OCCUPATIONAL LICENSE REQUIRED. (a) Except   as provided by this section, a person, other than as a spectator or   as a person placing a wager, may not participate in racing with   pari-mutuel wagering without first obtaining a license from the   department [commission]. A person may not engage in any occupation   for which commission rules require a license under this subtitle   without first obtaining a license from the department [commission].          (b)  The commission by rule shall categorize the occupations   of racetrack employees and determine the occupations that afford   the employee an opportunity to influence racing with pari-mutuel   wagering. The rules must require an employee to be licensed under   this subtitle if the employee:                (1)  works in an occupation determined by the   department [commission] to afford the employee an opportunity to   influence racing with pari-mutuel wagering; or                (2)  will likely have significant access to the   backside of a racetrack or to restricted areas of the frontside of a   racetrack.          (c)  The commission by rule may require the following persons   to hold an occupational license under this subtitle:                (1)  an adoption program employee;                (2)  an announcer;                (3)  an apprentice jockey;                (4)  an assistant farrier, plater, or blacksmith;                (5)  an assistant starter;                (6)  an assistant trainer;                (7)  an assistant trainer/owner;                (8)  an association assistant management employee;                (9)  an association management employee;                (10)  an association officer or director;                (11)  an association staff employee;                (12)  an association employee other than an employee   described in this subsection;                (13)  an association veterinarian;                (14)  an authorized agent;                (15)  a chaplain;                (16)  a chaplain assistant;                (17)  an equine dental provider;                (18)  an exercise rider;                (19)  a farrier, plater, or blacksmith;                (20)  a groom/exercise rider;                (21)  a groom/hot walker;                (22)  a groom/pony person;                (23)  a jockey;                (24)  a jockey agent;                (25)  a kennel helper;                (26)  a kennel owner;                (27)  a kennel owner/owner;                (28)  a kennel owner/owner/trainer;                (29)  a kennel owner/trainer;                (30)  a kennel registration employee;                (31)  a lead-out;                (32)  a maintenance employee;                (33)  a medical employee;                (34)  miscellaneous racetrack employees;                (35)  a multiple owner/stable/farm registration   employee;                (36)  a mutuel clerk;                (37)  a mutuel employee other than a clerk;                (38)  an owner;                (39)  an owner-trainer;                (40)  a pony person;                (41)  a racing industry representative;                (42)  a racing industry employee;                (43)  a racing official;                (44)  a security officer;                (45)  a stable foreman;                (46)  a tattooer;                (47)  a test technician;                (48)  a trainer;                (49)  a training facility employee;                (50)  a training facility general manager;                (51)  a valet;                (52)  a vendor concessionaire;                (53)  a vendor concessionaire employee;                (54)  a vendor-totalisator company;                (55)  a vendor-totalisator employee;                (56)  a veterinarian; and                (57)  a veterinarian assistant.          Sec. 2025.253.  EXAMINATION NOTIFICATION. (a) If an   examination is required for the issuance of a license under this   subchapter, the department [commission] shall notify each examinee   of the results of the examination not later than the 30th day after   the date the licensing examination is administered under this   subtitle.          (b)  If requested in writing by a person who fails a   licensing examination administered under this subtitle, the   department [commission] shall furnish the person with an analysis   of the person's performance on the examination.          Sec. 2025.254.  ISSUANCE OF LICENSE.  The department   [commission] shall issue a license to a qualified person on   application and payment of the license fee.          Sec. 2025.255.  ISSUANCE OF IDENTIFICATION CARD.  The   department [commission] shall issue a license certificate under   this subchapter in the form of an identification card with a   photograph and other information as prescribed by the department   [commission].          SECTION 7.63.  Section 2025.256(c), Occupations Code, is   amended to read as follows:          (c)  In setting the fee schedule under Subsection (a), the   commission shall include the cost of criminal history record   information obtained under Section 2023.058. The department   [commission] may determine the best method for recovering this cost   and complying with this section, including collecting the costs   over an extended period.          SECTION 7.64.  Section 2025.258(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] shall obtain criminal   history record information on each applicant renewing an   occupational license under this subchapter.          SECTION 7.65.  Section 2025.259, Occupations Code, is   amended to read as follows:          Sec. 2025.259.  LICENSE VALID THROUGHOUT STATE.  A license   issued under this subchapter is valid, as determined by the   department [commission], at all race meetings conducted in this   state.          SECTION 7.66.  Section 2025.260(a), Occupations Code, is   amended to read as follows:          (a)  Pending investigation of an applicant's qualifications   to receive an original or renewal license, the department   [commission] may issue a temporary license to an applicant under   this subchapter whose application appears to comply with the   requirements of law and who has paid the necessary fee.          SECTION 7.67.  Sections 2025.261 and 2025.262, Occupations   Code, are amended to read as follows:          Sec. 2025.261.  RECIPROCAL LICENSES; OUT-OF-STATE   APPLICANTS. (a) The executive director [commission] may waive any   prerequisite to obtaining a license for an applicant, including any   requirement to submit a set of fingerprints, after reviewing the   applicant's credentials and determining that the applicant holds a   license from another state that has license requirements   substantially equivalent to the requirements of this state.          (b)  The executive director [commission] may waive any   prerequisite to obtaining a license, including any requirement to   submit a set of fingerprints, for an applicant who holds a license   from another state with which this state has a reciprocity   agreement. The department [commission] may enter into agreements   with other states to allow for licensing by reciprocity.          Sec. 2025.262.  GROUNDS FOR DENIAL, REVOCATION, AND   SUSPENSION OF OCCUPATIONAL LICENSE. (a) The department   [commission] may refuse to issue any original or renewal license   under this subchapter or may revoke or suspend the license if, after   notice and opportunity for a hearing, the department [commission]   finds that the applicant or license holder, as appropriate:                (1)  has been convicted of a violation of this subtitle   or a commission rule or has aided, abetted, or conspired to commit a   violation of this subtitle or a commission rule;                (2)  has been convicted of or placed on deferred   adjudication for a felony or misdemeanor [a crime involving moral   turpitude] that is reasonably related to the person's present   fitness to hold a license under this subtitle;                (3)  [has violated or has caused to be violated this   subtitle or a commission rule in a manner that involves moral   turpitude, as distinguished from a technical violation of this   subtitle or a rule;                [(4)]  is unqualified, by experience or otherwise, to   perform the duties required of a license holder under this   subtitle;                (4) [(5)]  failed to answer or has falsely or   incorrectly answered a question in an original or renewal   application;                (5) [(6)]  fails to disclose the true ownership or   interest in a horse or greyhound as required by commission rules;                (6) [(7)]  is indebted to this state for any fee or for   the payment of a penalty imposed by this subtitle or a commission   rule;                (7)  has developed an incapacity that prevents or could   prevent the applicant or license holder from conducting the   applicant's or license holder's business with reasonable skill and   competence and in a manner that does not endanger public safety;                (8)  [is not of good moral character or the person's   reputation as a peaceable, law-abiding citizen in the community   where the person resides is bad;                [(9)  is in the habit of using alcoholic beverages to an   excess or uses a controlled substance as defined in Chapter 481,   Health and Safety Code, or a dangerous drug as defined in Chapter   483, Health and Safety Code, or is mentally incapacitated;                [(10)]  may be excluded from an enclosure under this   subtitle;                (9) [(11)]  has improperly used a temporary pass,   license certificate, credential, or identification card issued   under this subtitle;                (10) [(12)]  resides with a person whose license was   revoked for cause during the 12 months preceding the date of the   present application;                (11) [(13)]  has failed or refused to furnish a true   copy of the application to the department's [commission's] district   office in the district in which the premises for which the license   is sought are located; or                (12) [(14)]  is engaged or has engaged in activities or   practices that are detrimental to the best interests of the public   and the sport of horse racing or greyhound racing.          (b)  A proceeding under this section is a contested case for   purposes of Chapter 2001, Government Code.          SECTION 7.68.  Section 2026.003, Occupations Code, is   amended to read as follows:          Sec. 2026.003.  FINANCIAL DISCLOSURE. (a) The commission   by rule shall require that each racetrack association that holds a   license for a class 1 racetrack, class 2 racetrack, or greyhound   racetrack annually file with the department [commission] a detailed   financial statement that:                (1)  contains the names and addresses of all   stockholders, members, and owners of any interest in the racetrack;                (2)  indicates compliance during the filing period with   Section 2025.101; and                (3)  includes any other information required by the   department [commission].          (b)  Each transaction that involves an acquisition or a   transfer of a pecuniary interest in the racetrack association must   receive prior approval from the department [commission]. A   transaction that changes the ownership of the racetrack association   requires submission of updated information of the type required to   be disclosed under Section 2025.052 and payment of a fee to recover   the costs of the criminal background check.          SECTION 7.69.  Section 2026.004(b), Occupations Code, is   amended to read as follows:          (b)  If the racetrack or enclosure designated in the license   becomes unsuitable for racing because of fire, flood, or other   catastrophe, the affected racetrack association, with the prior   approval of the executive director [commission], may conduct a race   meeting or any remaining portion of a meeting temporarily at any   other racetrack if the other racetrack license holder:                (1)  is licensed by the department [commission] to   conduct the same type of racing as may be conducted by the affected   racetrack association; and                (2)  consents to the usage.          SECTION 7.70.  Sections 2026.005 and 2026.006, Occupations   Code, are amended to read as follows:          Sec. 2026.005.  CHANGE OF RACING LOCATION. On request of a   racetrack association, the department [commission] shall amend a   racetrack license to change the location of the racetrack if the   department [commission] determines that:                (1)  the conduct of race meetings at the proposed new   location will be in the public interest;                (2)  there was not a competing applicant for the   original license; and                (3)  the racetrack association's desire to change   location is not the result of a subterfuge in the original licensing   proceeding.          Sec. 2026.006.  LEASE OF RACETRACK PREMISES. (a) The   commission by rule may provide for the department to authorize a   racetrack association, as lessee, to contract for the lease of a   racetrack and the surrounding structures.          (b)  The department [commission] may not approve a lease if:                (1)  the lease appears to be a subterfuge to evade   compliance with Section 2025.101 or 2025.201;                (2)  the racetrack and surrounding structures do not   conform to the rules adopted under this subtitle; or                (3)  the lessee, prospective lessee, or lessor is   disqualified from holding a racetrack license.          (c)  Each lessor and lessee under this section must comply   with the disclosure requirements of Section 2025.052(a)(1). The   department [commission] may not approve a lease if the lessor and   lessee do not provide the required information.          SECTION 7.71.  Section 2026.007(e), Occupations Code, is   amended to read as follows:          (e)  The commission shall adopt rules implementing this   section, including rules:                (1)  requiring the report and correction of:                      (A)  an inappropriate condition on the premises of   a racetrack, including a failure to properly maintain the premises,   that interferes with the administration of this subtitle; and                      (B)  a condition on the premises that makes the   premises unsafe for a race participant, patron, or animal; and                (2)  determining the methods and manner by which the   executive director may determine and remedy inappropriate or unsafe   conditions on the premises, including the methods and manner in   which the department [executive director] may conduct inspections   of the premises and remedy emergency situations.          SECTION 7.72.  Section 2026.008, Occupations Code, is   amended to read as follows:          Sec. 2026.008.  SUPERVISION OF CONSTRUCTION, RENOVATION,   AND MAINTENANCE; ENFORCEMENT. (a) The commission by rule shall   adopt a method of supervising and approving the construction,   renovation, or maintenance of any building or improvement on the   premises of a racetrack.          (b)  The commission shall adopt rules relating to:                (1)  the approval of plans and specifications;                (2)  the contents of plans and specifications;                (3)  the maintenance of records to ensure compliance   with approved plans and specifications;                (4)  the content and filing of construction progress   reports by the racetrack association to the department   [commission];                (5)  the inspection by the department [commission] or   others;                (6)  the method for making a change or amendment to an   approved plan or specification; and                (7)  any other method of supervision or oversight   necessary.          (c)  If the department [commission] has grounds to believe   that a racetrack association has failed to comply with the   requirements of this section, a representative of the racetrack   association shall appear before the commission or department to   consider the issue of compliance with rules adopted under this   section.          (d)  Before a building or improvement may be used by a   racetrack association, the department [commission] shall determine   whether:                (1)  the construction, renovation, or maintenance of   the building or improvement was completed in accordance with the   approved plans and specifications; and                (2)  other [commission] requirements under this   subtitle were met.          (e)  If the department [commission] determines that the   racetrack association failed to comply with a requirement of this   section or a rule adopted under this section, the department   [commission] shall initiate an enforcement action against the   racetrack association. In addition to any other authorized   enforcement action, the department [commission] may rescind any   live or simulcast race date of any racetrack association that has   failed to comply with the requirements of this section.          SECTION 7.73.  Section 2026.013(b), Occupations Code, is   amended to read as follows:          (b)  The department [commission] may impose disciplinary   action against a racetrack for violations of this subtitle and   commission rules by the racetrack's employees as provided by   Section 2025.202.          SECTION 7.74.  Section 2026.051, Occupations Code, is   amended to read as follows:          Sec. 2026.051.  COMMISSION RULES REGARDING EXCLUSION OR   EJECTION.  The commission shall adopt rules providing for the   exclusion or ejection from an enclosure where horse or greyhound   races are conducted, or from specified portions of an enclosure, of   a person:                (1)  who has engaged in bookmaking, touting, or illegal   wagering;                (2)  whose income is from illegal activities or   enterprises;                (3)  who has been convicted of a violation of this   subtitle;                (4)  who has been convicted of theft;                (5)  who has been convicted under the penal law of   another jurisdiction for committing an act that would have   constituted a violation of any rule described in this section;                (6)  who has committed a corrupt or fraudulent act in   connection with horse or greyhound racing or pari-mutuel wagering   or who has committed any act tending or intended to corrupt horse or   greyhound racing or pari-mutuel wagering;                (7)  who is under suspension or has been excluded or   ejected from a racetrack by the department [commission] or a   steward in this state or by a corresponding authority in another   state because of corrupt or fraudulent practices or other acts   detrimental to racing;                (8)  who has submitted a forged pari-mutuel ticket or   has altered or forged a pari-mutuel ticket for cashing or who has   cashed or caused to be cashed an altered, raised, or forged   pari-mutuel ticket;                (9)  [who has been convicted of committing a lewd or   lascivious act or other crime involving moral turpitude;                [(10)]  who is guilty of [boisterous or] disorderly   conduct while inside an enclosure;                (10) [(11)]  who is an agent [or habitual associate] of   a person excludable under this section; or                (11) [(12)]  who has been convicted of a felony.          SECTION 7.75.  Sections 2026.052(a) and (b), Occupations   Code, are amended to read as follows:          (a)  A person who is excluded or ejected from an enclosure   under a commission rule may apply to the department [commission]   for a hearing on the question of the applicability of the rule to   that person.          (b)  A proceeding [An application for a hearing] under this   section is [Subsection (a) constitutes] a contested case for   purposes of [under] Chapter 2001, Government Code. If, after a   hearing as provided under Subchapter C of that chapter, the   commission determines that the exclusion or ejection was proper:                (1)  the commission shall issue an order to that effect   [and enter the order in the commission's minutes]; and                (2)  the person shall continue to be excluded from each   racetrack association's enclosure.          SECTION 7.76.  Section 2026.102(a), Occupations Code, is   amended to read as follows:          (a)  A class 1 racetrack is a racetrack on which live racing   is conducted for a number of days in a calendar year, as determined   by the department [commission] under Subchapter A, Chapter 2029.          SECTION 7.77.  Section 2026.103, Occupations Code, is   amended to read as follows:          Sec. 2026.103.  CLASS 2 RACETRACK. (a) A class 2 racetrack   is a racetrack on which live racing is conducted for a number of   days, as determined by the department [commission] under Subchapter   A, Chapter 2029.          (b)  A class 2 racetrack is entitled to conduct 60 days of   live racing in a calendar year. A racetrack association may request   additional or fewer days of live racing. If, after receipt of a   request from a racetrack association, the department [commission]   determines additional or fewer days to be economically feasible and   in the best interest of this state and the racing industry, the   department [commission] shall grant the request.          (c)  The department [commission] may permit a racetrack   association that holds a class 2 racetrack license and that is   located in a national historic district to conduct horse races for   more than 60 days in a calendar year.          SECTION 7.78.  Section 2026.105(b), Occupations Code, is   amended to read as follows:          (b)  A racetrack association that holds a class 4 racetrack   license may conduct live races for a number of days not to exceed   five days in a calendar year on dates selected by the racetrack   association and approved by the department [commission].          SECTION 7.79.  Section 2026.106, Occupations Code, is   amended to read as follows:          Sec. 2026.106.  WAIVER OR DEFERRAL OF CERTAIN STANDARDS FOR   CLASS 4 RACETRACK. (a) In considering an application for a class 4   racetrack license, except as provided by Subsection (b), the   executive director [commission] may waive or defer compliance with   the department's [commission's] standards regarding the physical   facilities or operations of a horse racetrack.          (b)  The executive director [commission] may not waive or   defer compliance with standards that relate to the testing of   horses or license holders for the presence of a prohibited   substance, including a prohibited drug or chemical.          (c)  If the executive director [commission] defers   compliance, the department [commission] shall, when granting the   application, establish a schedule under which the license holder   must comply with the standards.          SECTION 7.80.  Section 2026.107(b), Occupations Code, is   amended to read as follows:          (b)  The number of race dates allowed under this subchapter   relates only to live race dates. A racetrack may present simulcast   races on other dates as approved by the department [commission].          SECTION 7.81.  Sections 2026.151 and 2026.152, Occupations   Code, are amended to read as follows:          Sec. 2026.151.  DEPARTMENT [COMMISSION] APPROVAL REQUIRED.   (a) All concession, management, and totalisator contracts   submitted by an applicant under Section 2025.054 must have the   prior approval of the department [commission].          (b)  The department [commission] shall refuse to approve a   concession or management contract if, in the sole discretion of the   department [commission], the background checks conducted under   Section 2025.056 reveal anything that might be detrimental to the   public interest or the racing industry.          Sec. 2026.152.  DEPARTMENT [COMMISSION] REVIEW OF SECURITY   PLANS AND CERTAIN CONTRACTS. (a) On receipt of a plan for the   security of a racetrack, or a copy of a concession, management, or   totalisator contract for review under Section 2026.151, the   department [commission] shall review the security plan or contract   [in an executive session]. Documents submitted by an applicant to   the department [commission] under this section or Section 2025.052   or 2025.054 are subject to discovery in a suit brought under this   subtitle but are not public records and are not subject to Chapter   552, Government Code.          (b)  In reviewing and approving contracts under Subsection   (a), the department [commission] shall attempt to ensure the   involvement of minority-owned businesses whenever possible.          SECTION 7.82.  Section 2026.153(b), Occupations Code, is   amended to read as follows:          (b)  The department [commission] may not approve a   management contract to operate or manage a racetrack owned by a   governmental entity unless the racetrack license holder is an owner   of the entity that proposes to manage the racetrack.          SECTION 7.83.  Section 2027.001(b), Occupations Code, is   amended to read as follows:          (b)  Rules adopted under this subtitle must include rules to:                (1)  regulate wagering by a person licensed under this   subtitle;                (2)  prohibit wagering by a department [commission]   employee;                (3)  prohibit a racetrack association from accepting a   wager made by telephone; and                (4)  prohibit a racetrack association from accepting a   wager made on credit.          SECTION 7.84.  Sections 2027.003 and 2027.004, Occupations   Code, are amended to read as follows:          Sec. 2027.003.  WAGERING COMPUTATION EQUIPMENT. (a)   Wagering authorized under this chapter may be calculated only by   state-of-the-art computational equipment approved by the   department [commission].          (b)  The department [commission] may not require the use of a   particular make of equipment.          Sec. 2027.004.  AUTOMATED TELLER MACHINES: RULES,   LIMITATIONS, AND FEES. (a) The commission shall:                (1)  adopt rules providing for the use of automated   teller machines in an enclosure; and                (2)  direct the department to limit the use of   automated teller machines by allowing a person access only to the   person's checking account at a bank or other financial institution.          (b)  A racetrack association that allows an automated teller   machine in an enclosure as provided by Subsection (a) shall collect   a fee of $1 for each transaction authorized under that subsection   and forward the fee to the department [commission].          (c)  The commission shall:                (1)  adopt rules providing for collection, reporting,   and auditing of the transaction fee authorized under Subsection   (b); and                (2)  direct the department to deposit the fee collected   under Subsection (b) to the credit of the general revenue fund.          SECTION 7.85.  Section 2027.006(d), Occupations Code, is   amended to read as follows:          (d)  If the racetrack association refuses to pay a claimant   who has established satisfactorily a right to distribution from a   pari-mutuel pool, the claimant may appeal to the department   [commission] under procedures prescribed by commission rule.          SECTION 7.86.  Section 2027.052(a), Occupations Code, is   amended to read as follows:          (a)  This subtitle may not be construed to allow wagering in   this state on simulcast races at any location other than a racetrack   licensed under this subtitle that has been granted live race dates   by the department [commission].          SECTION 7.87.  The heading to Section 2027.053, Occupations   Code, is amended to read as follows:          Sec. 2027.053.  DEPARTMENT [COMMISSION] APPROVAL REQUIRED   FOR PARI-MUTUEL POOL INCLUSION.          SECTION 7.88.  Section 2027.053(a), Occupations Code, is   amended to read as follows:          (a)  With department [commission] approval:                (1)  wagers accepted on a simulcast race by any   out-of-state receiving location may be included in the pari-mutuel   pool for the race at the sending in-state racetrack association;   and                (2)  wagers accepted by an in-state racetrack   association on a race simulcast from out-of-state may be included   in the pari-mutuel pools for the race at the out-of-state sending   track.          SECTION 7.89.  Section 2027.054(c), Occupations Code, is   amended to read as follows:          (c)  The department [commission] may not approve wagering on   an interstate simulcast race unless the receiving location consents   to wagering on interstate simulcast races at all other receiving   locations in this state.          SECTION 7.90.  The heading to Subchapter A, Chapter 2028,   Occupations Code, is amended to read as follows:   SUBCHAPTER A. [COMMISSION] OVERSIGHT OF PARI-MUTUEL RACING FUNDS          SECTION 7.91.  Section 2028.001(a), Occupations Code, is   amended to read as follows:          (a)  For any organization that receives funds generated by   live or simulcast pari-mutuel racing, the commission shall adopt   rules specifying the reporting, monitoring, and auditing   requirements or other appropriate performance measures for:                (1)  any funds distributed to or used by the   organization; and                (2)  any function or service provided by the   expenditure of the funds described by Subdivision (1).          SECTION 7.92.  Sections 2028.002 and 2028.003, Occupations   Code, are amended to read as follows:          Sec. 2028.002.  INDEPENDENT AUDIT REPORT; RECORDS REVIEW.   (a) An organization that receives funds generated by live or   simulcast pari-mutuel racing shall annually file with the   department [commission] a copy of an audit report prepared by an   independent certified public accountant. The audit must include a   verification of any performance report sent to or required by the   department [commission].          (b)  The department [commission] may review any record or   book of an organization that submits an independent audit to the   department [commission] as the department [commission] determines   necessary to confirm or further investigate the findings of an   audit or report.          Sec. 2028.003.  SUSPENSION AND WITHHOLDING OF FUNDS. The   commission [by rule] may adopt rules authorizing the department to   suspend or withhold funds from an organization:                (1)  that the department [commission] determines has   failed to comply with the requirements or performance measures   adopted under Section 2028.001; or                (2)  for which material questions on the use of funds by   the organization are raised following an independent audit or other   report to the department [commission].          SECTION 7.93.  Section 2028.102(e), Occupations Code, is   amended to read as follows:          (e)  A horse racetrack association may pay a portion of the   revenue set aside under this section to an organization recognized   under Section 2023.051, as provided by a contract approved by the   department [commission].          SECTION 7.94.  Sections 2028.103(a) and (a-1), Occupations   Code, are amended to read as follows:          (a)  A horse racetrack association shall set aside for the   Texas-bred program and pay to the department [commission] an amount   equal to one percent of a live multiple two wagering pool and a live   multiple three wagering pool.  From the set-aside amounts:                (1)  two percent shall be set aside for purposes of   Subchapter F, Chapter 88, Education Code; and                (2)  the remaining amount shall be allocated as   follows:                      (A)  10 percent may be used by the appropriate   state horse breed registry for administration; and                      (B)  the remainder shall be used for awards.          (a-1)  The department [commission] shall deposit money paid   to the department [commission] under Subsection (a) into the   Texas-bred incentive fund established under Section 2028.301. The   department [commission] shall distribute the money collected under   this section and deposited into the fund to the appropriate state   horse breed registries for the Texas-bred program in accordance   with rules adopted under Subsection (c).          SECTION 7.95.  Sections 2028.105(b), (d), and (d-1),   Occupations Code, are amended to read as follows:          (b)  A horse racetrack association shall pay to the   department [commission] for use by the appropriate state horse   breed registry, subject to commission rules, 10 percent of the   total breakage from a live pari-mutuel pool or a simulcast   pari-mutuel pool. The appropriate state horse breed registries are   as follows:                (1)  the Texas Thoroughbred [Breeders] Association for   Thoroughbred horses;                (2)  the Texas Quarter Horse Association for quarter   horses;                (3)  the Texas Appaloosa Horse Club for Appaloosa   horses;                (4)  the Texas Arabian Breeders Association for Arabian   horses; and                (5)  the Texas Paint Horse Breeders Association for   paint horses.          (d)  The horse racetrack association shall pay to the   department [commission] for deposit into the Texas-bred incentive   fund established under Section 2028.301 and distribution to the   appropriate state horse breed registry the remaining 80 percent of   the total breakage to be allocated as follows:                (1)  40 percent to the owners of the accredited   Texas-bred horses that finish first, second, or third;                (2)  40 percent to the breeders of accredited   Texas-bred horses that finish first, second, or third; and                (3)  20 percent to the owner of the stallion standing in   this state at the time of conception whose Texas-bred get finish   first, second, or third.          (d-1)  The department [commission] shall deposit the   portions of total breakage paid to the department [commission]   under Subsections (b) and (d) into the Texas-bred incentive fund   established under Section 2028.301. The department [commission]   shall distribute the money collected under this section and   deposited into the fund to the appropriate state horse breed   registries in accordance with this section and with rules adopted   by the commission under Section 2028.103.          SECTION 7.96.  Section 2028.154(a), Occupations Code, is   amended to read as follows:          (a)  A greyhound racetrack association shall pay 50 percent   of the breakage to the appropriate state greyhound breed   registry.  Of that breakage percentage:                (1)  25 percent is to be used in stakes races; and                (2)  25 percent of that total breakage from a live   pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to   the department [commission] for deposit into the Texas-bred   incentive fund established under Section 2028.301. The department   [commission] shall distribute the money collected under this   section and deposited into the fund to the state greyhound breed   registry for use in accordance with this section and commission   rules.          SECTION 7.97.  Section 2028.201, Occupations Code, is   amended to read as follows:          Sec. 2028.201.  RULES.  (a) The commission shall adopt   rules relating to this subchapter and the oversight of the amounts   allocated under Sections 2028.202(b)(1), (2), and (3)   [2028.202(b)] and (c).          (b)  The commission shall adopt rules relating to the   oversight of the amounts allocated under Section 2028.202(b)(4).          SECTION 7.98.  Sections 2028.202(a), (a-1), and (b),   Occupations Code, are amended to read as follows:          (a)  A racetrack association shall distribute from the total   amount deducted as provided by Sections 2028.101 and 2028.152 from   each simulcast pari-mutuel pool and each simulcast cross-species   pari-mutuel pool the following shares:                (1)  an amount equal to one percent of each simulcast   pari-mutuel pool to the department [commission] for the   administration of this subtitle;                (2)  an amount equal to 1.25 percent of each simulcast   cross-species pari-mutuel pool to the department [commission] for   the administration of this subtitle;                (3)  for a horse racetrack association, an amount equal   to one percent of a multiple two wagering pool or multiple three   wagering pool as the amount set aside for the Texas-bred program to   be used as provided by Section 2028.103;                (4)  for a greyhound racetrack association, an amount   equal to one percent of a multiple two wagering pool or a multiple   three wagering pool as the amount set aside for the Texas-bred   program for greyhound races, to be distributed and used in   accordance with commission rules adopted to promote greyhound   breeding in this state; and                (5)  the remainder as the amount set aside for purses,   expenses, the sending track, and the receiving location under a   contract approved by the department [commission] between the   sending track and the receiving location.          (a-1)  A racetrack association shall pay to the department   [commission] for deposit into the Texas-bred incentive fund   established under Section 2028.301 the shares to be distributed   under Subsections (a)(3) and (a)(4) for the Texas-bred program.   The department [commission] shall distribute the money collected   under this section and deposited into the fund to the appropriate   state breed registries for use under the Texas-bred program.          (b)  From the total amount deducted under Subsection (a), a   greyhound racetrack association that receives an interstate   cross-species simulcast signal shall distribute the following   amounts from each pari-mutuel pool wagered on the signal at the   racetrack:                (1)  a fee of 1.5 percent to be paid to the racetrack in   this state sending the signal;                (2)  a purse in the amount of 0.75 percent to be paid to   the official state horse breed registry for Thoroughbred horses for   use as purses at racetracks in this state;                (3)  a purse in the amount of 0.75 percent to be paid to   the official state horse breed registry for quarter horses for use   as purses at racetracks in this state; and                (4)  a purse of 4.5 percent to be deposited in the horse   industry escrow account as [escrowed with the commission in the   manner] provided by Section 2028.204.          SECTION 7.99.  Sections 2028.203 and 2028.204, Occupations   Code, are amended to read as follows:          Sec. 2028.203.  REIMBURSEMENT FOR SIMULCAST SIGNAL COST. If   a racetrack association purchases an interstate simulcast signal   and the signal cost exceeds five percent of the pari-mutuel pool,   the department [commission], from the horse industry escrow   [escrowed] account established under Section 2028.204   [2028.202(b)(4)], shall reimburse the racetrack association an   amount equal to one-half of the signal cost that exceeds five   percent of the pari-mutuel pool.          Sec. 2028.204.  HORSE INDUSTRY ESCROW ACCOUNT; DEPOSIT AND   ALLOCATION OF MONEY [IN ESCROW ACCOUNTS]. (a) The horse industry   escrow account is a trust account in the department's registry   composed of money deposited to the account in accordance with this   subtitle.          (b)  A greyhound racetrack association shall deposit into   the horse industry [an] escrow account [in the commission's   registry] the purse set aside under Section 2028.202(b)(4).          (c) [(b)]  Any horse racetrack association in this state may   apply to the department [commission] for receipt of money in the   horse industry escrow account for use as purses.  Any state horse   breed registry listed in Section 2030.002(a) may apply for receipt   of money in the account for any event that furthers the horse   industry.  The department [commission]:                (1)  shall determine the horse racetrack associations   and state horse breed registries to be allocated money from the   account and the percentages to be allocated, taking into   consideration purse levels, racing opportunities, and the   financial status of the requesting racetrack association or   requesting breed registry; and                (2)  may not annually allocate more than 70 percent of   the amount deposited into the account to horse racetrack   associations for use as purses.          SECTION 7.100.  Section 2028.2041, Occupations Code, is   amended to read as follows:          Sec. 2028.2041.  ALLOCATION OF CERTAIN FUNDS IN HORSE   INDUSTRY ESCROW ACCOUNT TO GENERAL REVENUE FUND; MAXIMUM ACCOUNT   BALANCE. (a) In each state fiscal biennium, the comptroller shall   deposit the amounts allocated under Section 151.801(c-3), Tax Code,   into the horse industry escrow account established under Section   2028.204 [2028.204(b)], until the comptroller determines the   amount deposited into the account in that fiscal biennium equals   the greater of:                (1)  the amount appropriated to the department   [commission] for the purposes of Section 2028.204 for that fiscal   biennium; or                (2)  $50 million.          (b)  Once the comptroller determines the greater of the   amount described by Subsection (a)(1) or (2) has been deposited   during a state fiscal biennium into the horse industry escrow   account established under Section 2028.204 [2028.204(b)], for the   remainder of that fiscal biennium the comptroller shall deposit the   amounts allocated under Section 151.801(c-3), Tax Code, into the   general revenue fund.          (c)  The balance of the horse industry escrow account   established under Section 2028.204 [2028.204(b)] shall not exceed   $50 million.          SECTION 7.101.  Section 2028.205, Occupations Code, is   amended to read as follows:          Sec. 2028.205.  ADDITIONAL ALLOCATIONS FROM HORSE INDUSTRY   ESCROW ACCOUNT FOR CERTAIN RACETRACKS. (a) In addition to money   allocated under Section 2028.204, a horse racetrack association   operating a racetrack that is located not more than 75 miles from a   greyhound racetrack that offers wagering on a cross-species   simulcast signal and that sends the cross-species simulcast signal   to the greyhound racetrack may apply to the department [commission]   for an allocation of up to 20 percent of the money in the horse   industry escrow [escrowed] account established under Section   2028.204 that is attributable to the wagering on a cross-species   simulcast signal at the greyhound racetrack.          (b)  If the applying horse racetrack association can prove to   the department's [commission's] satisfaction that the racetrack   association's handle has decreased directly due to wagering on an   interstate cross-species simulcast signal at a greyhound racetrack   located not more than 75 miles from the applying racetrack   association, the department [commission] shall allocate amounts   from the horse industry escrow [escrowed] account as the department   [commission] considers appropriate to compensate the racetrack   association for the decrease.  The amounts allocated may not exceed   20 percent of the money in the [escrowed] account that is   attributable to the wagering on the interstate cross-species   simulcast signal at the greyhound racetrack.          (c)  Money allocated by the department [commission] under   this section may be used by the racetrack association for any   purpose.          SECTION 7.102.  Section 2028.301, Occupations Code, is   amended to read as follows:          Sec. 2028.301.  TEXAS-BRED INCENTIVE FUND. (a)  The   department [commission] shall deposit money set aside for the   Texas-bred program or set aside for use by state breed registries   under this chapter into an escrow account in the state treasury in   the registry of the department [commission] to be known as the   Texas-bred incentive fund.          (b)  The department [commission] shall distribute money from   the Texas-bred incentive fund in accordance with this chapter and   commission rules.          SECTION 7.103.  Chapter 2028, Occupations Code, is amended   by adding Subchapter H to read as follows:   SUBCHAPTER H. NATIONAL EVENT INCENTIVES          Sec. 2028.401.  NATIONAL EVENT INCENTIVES. (a) In this   section:                (1)  "Breeders' Cup costs" means all costs for capital   improvements and extraordinary expenses reasonably incurred for   the operation of the Breeders' Cup races, including purses offered   on other days in excess of the purses that the host association is   required to pay by this subtitle.                (2)  "Breeders' Cup races" means a series of   thoroughbred races known as the Breeders' Cup Championship races   conducted annually by Breeders' Cup Limited on a day known as   Breeders' Cup Championship day.                (3)  "Development organization" means an organization   whose primary purpose is the marketing, promotion, or economic   development of a city, county, or region of the state, including   chambers of commerce, convention and visitors bureaus, and sports   commissions.                (4)  "Political subdivision" means a city, county, or   other political subdivision of the state and includes any entity   created by a political subdivision.          (b)  An association conducting the Breeders' Cup races may   apply to the reimbursement of Breeders' Cup costs amounts that   would otherwise be set aside by the association for the state under   Sections 2028.051 and 2028.202(a)(1) during the year in which the   association hosts the Breeders' Cup races, limited to an amount   equal to the lesser of the aggregate amount contributed to pay   Breeders' Cup costs by political subdivisions and development   organizations or $2 million. Beginning on January 1 of the year for   which the association has been officially designated to host the   Breeders' Cup races, amounts that would otherwise be set aside by   the association for the state during that year under Sections   2028.051 and 2028.202(a)(1) shall be set aside, in accordance with   procedures prescribed by the comptroller, for deposit into the   Breeders' Cup Developmental Account. The Breeders' Cup   Developmental Account is an account in the general revenue fund.   The department shall administer the account. Money in the account   may be appropriated only to the department and may be used only for   the purposes specified in this section. The account is exempt from   the application of Section 403.095, Government Code.          (c)  The department shall make disbursements from the   Breeders' Cup Developmental Account to reimburse Breeders' Cup   costs actually incurred and paid by the association, after the   association files a request for reimbursement. Disbursements from   the account may not at any time exceed the aggregate amount actually   paid for Breeders' Cup costs by political subdivisions and   development organizations, as certified by the department to the   comptroller, or $2 million, whichever is less.          (d)  Not later than January 31 of the year following the year   in which the association hosts the Breeders' Cup races, the   association shall submit to the department a report that shows:                (1)  the total amount of Breeders' Cup costs incurred   and paid by the association;                (2)  the total payments made by political subdivisions   and development organizations for Breeders' Cup costs; and                (3)  any other information requested by the commission.          (e)  Following receipt of the report required by Subsection   (d), the department shall take any steps it considers appropriate   to verify the report. Not later than March 31 of the year following   the event, the department shall transfer to the credit of the   general revenue fund any balance remaining in the Breeders' Cup   Developmental Account after reimbursement of any remaining   Breeders' Cup costs authorized under this section.          (f)  In addition to the authority otherwise granted in this   subtitle, the commission and the comptroller may adopt rules for   the administration of this section as follows:                (1)  the commission may adopt rules relating to:                      (A)  auditing or other verification of Breeders'   Cup costs and amounts paid or set aside by political subdivisions   and development organizations; and                      (B)  the disbursement of funds from the Breeders'   Cup Developmental Account; and                (2)  the comptroller may adopt rules relating to:                      (A)  procedures and requirements for transmitting   or otherwise delivering to the treasury the money set aside under   this section; and                      (B)  depositing funds into the Breeders' Cup   Developmental Account.          (g)  The commission may adopt rules to facilitate the conduct   of the Breeders' Cup races, including the adoption of rules or   waiver of existing rules relating to the overall conduct of racing   during the Breeders' Cup races in order to assure the integrity of   the races, licensing for all participants, special stabling and   training requirements for foreign horses, and commingling of   pari-mutuel pools.          (h)  To the extent of any conflict between this section and   another provision of this subtitle, this section prevails.          SECTION 7.104.  Section 2029.001, Occupations Code, is   amended to read as follows:          Sec. 2029.001.  ALLOCATION OF HORSE RACING DAYS; PROHIBITED   RACING DAYS. (a) The department [commission] shall allocate the   live and simulcast horse racing days for the conduct of live and   simulcast racing at each racetrack.          (b)  In allocating race dates under this section, the   department [commission] shall consider live race dates separately   from simulcast race dates.          (c)  The commission by rule may prohibit racing on Sunday   unless the prohibition would conflict with another provision of   this subtitle. The commission may delegate to the executive   director the commission's authority under this subsection.          SECTION 7.105.  Sections 2029.002(a) and (c), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall grant to each   racetrack association additional horse racing days during a horse   race meeting to be conducted as charity days. The department   [commission] shall grant to each class 1 racetrack and to each class   2 racetrack at least two and not more than five additional days.          (c)  The department [commission] shall ensure that races   conducted by a racetrack association on a charity day are   comparable in all respects, including the generation of revenue, to   races conducted by that racetrack association on any other horse   racing day.          SECTION 7.106.  Section 2029.003, Occupations Code, is   amended to read as follows:          Sec. 2029.003.  ACCESS TO RACES. (a) Each racetrack shall   provide reasonable access to races for all breeds of horses as   determined by the racetrack association through negotiations with   the representative state horse breed registry with the final   approval of the department [commission].          (b)  In granting approval under Subsection (a), the   department [commission] shall consider:                (1)  the availability of competitive horses;                (2)  economic feasibility; and                (3)  public interest.          SECTION 7.107.  Sections 2029.052(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall grant not less than   five additional greyhound racing days during a greyhound race   meeting to be conducted as charity days.          (b)  The department [commission] shall ensure that races   conducted by a racetrack association on a charity day are   comparable in all respects, including the generation of revenue, to   races conducted by that racetrack association on any other   greyhound racing day.          SECTION 7.108.  Section 2029.053, Occupations Code, is   amended to read as follows:          Sec. 2029.053.  SUBSTITUTE RACING DAYS OR ADDITIONAL RACES.     If, for a reason beyond a greyhound racetrack association's control   and not caused by the racetrack association's fault or neglect, it   is impossible for the racetrack association to conduct a race on a   day authorized by the department [commission], the executive   director [commission] in the executive director's [its] discretion   and at the request of the racetrack association, as a substitute for   the race, may:                (1)  specify another day for the racetrack association   to conduct racing; or                (2)  add additional races to already programmed events.          SECTION 7.109.  Section 2030.001(b), Occupations Code, is   amended to read as follows:          (b)  Rules adopted under this section are subject to approval   by the department [commission].          SECTION 7.110.  Section 2030.002(b), Occupations Code, is   amended to read as follows:          (b)  The appropriate state horse breed registry shall act in   an advisory capacity to each racetrack association and to the   department [commission] for the purpose of administering Sections   2030.003 and 2030.004.          SECTION 7.111.  Sections 2030.005 and 2030.006, Occupations   Code, are amended to read as follows:          Sec. 2030.005.  EQUITABLE NUMBER OF RACES FOR EACH BREED.   (a) A racetrack association that conducts a horse race meeting for   more than one breed of horse at one racetrack shall provide that the   number of races run by each breed on each day is equitable as   determined by the department [commission] under Section 2029.003.          (b)  The commission by rule [or by order] may allow for an   exception to Subsection (a) if an insufficient number of horses of a   breed are available to provide sufficient competition. The   commission may delegate to the executive director the commission's   authority under this subsection.          Sec. 2030.006.  EQUITABLE STABLING.  A racetrack association   that conducts a horse race meeting for more than one breed of horse   at one racetrack shall provide on-track stalls on an equitable   basis as determined by the department [commission] under Section   2029.003.          SECTION 7.112.  Section 2030.051(b), Occupations Code, is   amended to read as follows:          (b)  Rules adopted under this section are subject to approval   by the department [commission].          SECTION 7.113.  Section 2031.001, Occupations Code, is   amended to read as follows:          Sec. 2031.001.  ESTABLISHMENT OF TEXAS DERBIES. (a) The   commission by rule shall establish as Texas Derbies the following   annual stakes races:                (1)  one race open to three-year-old Thoroughbreds;                (2)  one race open only to three-year-old Texas-bred   Thoroughbreds;                (3)  one race open to three-year-old quarter horses;   and                (4)  one race open only to three-year-old Texas-bred   quarter horses.          (b)  Each Texas Derby must be held annually on a date and at   the class 1 racetrack determined by the department [commission].   The department [commission] shall determine the location of each   Texas Derby in consultation with:                (1)  each class 1 racetrack;                (2)  the official state horse breed registries; and                (3)  the official horsemen's organization.          (c)  The department [commission] may sell the right to name a   Texas Derby. The department [commission] shall deposit the   proceeds from the sale of the right to name a Texas Derby into the   Texas Derby escrow purse fund established under Section 2031.004.          SECTION 7.114.  Section 2031.003(a), Occupations Code, is   amended to read as follows:          (a)  For each Texas Derby, the department [commission] shall   appoint a state veterinarian to conduct a prerace examination of   each horse entered in the race to determine whether the horse:                (1)  is healthy; and                (2)  meets standards set by commission rule for racing.          SECTION 7.115.  Sections 2031.004(a) and (e), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall establish a Texas   Derby escrow purse fund.          (e)  The department [commission] may not:                (1)  use funds from the accredited Texas-bred program   under Subchapter A, Chapter 2030, or the horse industry escrow   [escrowed purse] account established under Section 2028.204 to fund   the Texas Derby escrow purse fund; or                (2)  order a state horse breed registry to fund a purse   for a Texas Derby, make contributions to the Texas Derby escrow   purse fund, or pay the expenses of a Texas Derby race.          SECTION 7.116.  Chapter 2032, Occupations Code, is amended   by adding Section 2032.004 to read as follows:          Sec. 2032.004.  RULES. The commission may adopt rules as   necessary to:                (1)  administer this chapter; and                (2)  ensure public safety and welfare.          SECTION 7.117.  Section 2033.006(a), Occupations Code, is   amended to read as follows:          (a)  A person commits an offense if the person knowingly   possesses or displays a credential issued by the department or a   false credential that identifies the person as the holder of the   credential and the person knows that:                (1)  the credential is not issued to the person; or                (2)  the person is not a license holder.          SECTION 7.118.  Sections 2033.007(a) and (b), Occupations   Code, are amended to read as follows:          (a)  For purposes of this section, a request is lawful if it   is made:                (1)  at any time by:                      (A)  the department [commission];                      (B)  an authorized department [commission] agent;                      (C)  the director or a commissioned officer of the   Department of Public Safety;                      (D)  a peace officer; or                      (E)  a steward or judge; and                (2)  at any restricted location that is at a racetrack   and is not a public place.          (b)  A person commits an offense if, after a lawful request,   the person knowingly fails or refuses to:                (1)  display a credential issued by the department to   another person; or                (2)  give the person's name, residence address, or date   of birth to another person.          SECTION 7.119.  Section 2033.008(a), Occupations Code, is   amended to read as follows:          (a)  A person commits an offense if the person knowingly   wagers on the result of a horse or greyhound race conducted in this   state that:                (1)  is held on an American Indian reservation or on   American Indian trust land located in this state; and                (2)  is not held under the supervision of the   department [commission] under rules adopted under this subtitle.          SECTION 7.120.  Section 2033.009(a), Occupations Code, is   amended to read as follows:          (a)  A person commits an offense if the person is a license   holder and the person knowingly permits, facilitates, or allows   access to an enclosure where races are conducted to another person   who the person knows:                (1)  has engaged in bookmaking, touting, or illegal   wagering;                (2)  derives income from illegal activities or   enterprises;                (3)  has been convicted of a violation of this   subtitle; or                (4)  is excluded by the department [commission] from   entering a racetrack.          SECTION 7.121.  Section 2033.012(c), Occupations Code, is   amended to read as follows:          (c)  An offense under this section is a state jail felony   unless the statement was material in a department [commission]   action relating to a racetrack license, in which event the offense   is a felony of the third degree.          SECTION 7.122.  Section 2033.013(c), Occupations Code, is   amended to read as follows:          (c)  An offense under this section is a state jail felony if:                (1)  the actor:                      (A)  is a license holder under this subtitle or a   commission member or department employee; and                      (B)  knowingly represents that a commission   member or department employee or a person licensed by the   department [commission] is the source of the false information; or                (2)  the false statement or information was contained   in racing selection information provided to the public.          SECTION 7.123.  Sections 2033.018(a) and (b), Occupations   Code, are amended to read as follows:          (a)  A person consents to a search for a prohibited device,   prohibited substance, or other contraband at a time and location   described by Subsection (b) if the person:                (1)  accepts a license or other credential issued by   the department under this subtitle; or                (2)  enters a racetrack under the authority of a   license or other credential alleged to have been issued by the   department under this subtitle.          (b)  A search may be conducted by a commissioned officer of   the Department of Public Safety or a peace officer, including a   peace officer employed by the department [commission], at any time   and at any location at a racetrack, except a location:                (1)  excluded by commission rule from searches under   this section; or                (2)  provided by a racetrack association under   commission rule for private storage of personal items belonging to   a license holder entering a racetrack.          SECTION 7.124.  Sections 2033.021, 2033.051, and 2033.052,   Occupations Code, are amended to read as follows:          Sec. 2033.021.  DEPARTMENT [COMMISSION] AUTHORITY.  This   subchapter does not restrict the department's [commission's]   administrative authority to enforce this subtitle or commission   rules to the fullest extent authorized by this subtitle.          Sec. 2033.051.  IMPOSITION OF PENALTY.  If the commission or   the executive director determines that a person regulated under   this subtitle has violated this subtitle or a rule or order adopted   under this subtitle in a manner that constitutes a ground for a   disciplinary action under this subtitle, the commission or the   executive director may assess an administrative penalty against   that person as provided by this subchapter or Subchapter F, Chapter   51.          Sec. 2033.052.  AMOUNT OF PENALTY. (a) Notwithstanding   Subchapter F, Chapter 51, the [The] commission or the executive   director may assess an administrative penalty under this subchapter   in an amount not to exceed $10,000 for each violation.          (b)  In determining the amount of the penalty, the commission   or the executive director shall consider the criteria listed in   Section 51.302(b) [seriousness of the violation].          SECTION 7.125.  Section 2033.057(a), Occupations Code, is   amended to read as follows:          (a)  A complaint alleging a violation of this subtitle may be   instituted by the Department of Public Safety, the department   [commission], or the attorney general.          SECTION 7.126.  Subchapter B, Chapter 2033, Occupations   Code, is amended by adding Section 2033.058 to read as follows:          Sec. 2033.058.  DISPOSITION OF ADMINISTRATIVE PENALTY. The   commission shall remit an administrative penalty collected under   this subtitle to the comptroller for deposit in the general revenue   fund.          SECTION 7.127.  Section 2033.101(b), Occupations Code, is   amended to read as follows:          (b)  On issuance of a cease and desist order, a department   employee or authorized department agent [the executive director]   shall serve a proposed cease and desist order on the racetrack   association or other license holder by personal delivery or   registered or certified mail, return receipt requested, to the   person's last known address.          SECTION 7.128.  Sections 2033.102(b) and (c), Occupations   Code, are amended to read as follows:          (b)  On receiving a request for a hearing, a department   employee or authorized department agent [the executive director]   shall serve notice of the time and place of the hearing by personal   delivery or registered or certified mail, return receipt requested.          (c)  At a hearing, the department [commission] has the burden   of proof and must present evidence in support of the order. Each   person against whom the order is directed may cross-examine and   show cause why the order should not be issued.          SECTION 7.129.  Section 2033.104(b), Occupations Code, is   amended to read as follows:          (b)  After the executive director issues [issuing] an   emergency cease and desist order, a department employee or   authorized department agent [the executive director] shall serve on   the racetrack association or other license holder by personal   delivery or registered or certified mail, return receipt requested,   to the person's last known address, an order stating the specific   charges and requiring the person immediately to cease and desist   from the conduct that violates this subtitle or a commission rule.   The order must contain a notice that a request for hearing may be   filed under this section.          SECTION 7.130.  Sections 2033.105(c) and (d), Occupations   Code, are amended to read as follows:          (c)  On receiving a request for a hearing, a department   employee or authorized department agent [the executive director]   shall serve notice of the time and place of the hearing by personal   delivery or registered or certified mail, return receipt requested.   The hearing must be held not later than the 10th day after the date   the executive director receives the request for a hearing unless   the parties agree to a later hearing date.          (d)  At the hearing, the department [commission] has the   burden of proof and must present evidence in support of the order.   The person requesting the hearing may cross-examine witnesses and   show cause why the order should not be affirmed. [Section   2003.021(b), Government Code, does not apply to hearings conducted   under this section.]          SECTION 7.131.  Section 2033.106(a), Occupations Code, is   amended to read as follows:          (a)  If the executive director reasonably believes that a   person has violated a final and enforceable cease and desist or   emergency order, the executive director may:                (1)  initiate administrative penalty proceedings under   Subchapter B;                (2)  refer the matter to the attorney general for   enforcement by injunction and any other available remedy; or                (3)  pursue any other action that the executive   director considers appropriate, including suspension of the   person's license.          SECTION 7.132.  Section 2033.151, Occupations Code, is   amended to read as follows:          Sec. 2033.151.  DISCIPLINARY ACTIONS. (a) The commission   may [shall] revoke, suspend, or refuse to renew a license, place on   probation a person whose license has been suspended, or reprimand a   license holder for a violation of this subtitle or a commission   rule.          (b)  If a license suspension is probated, the commission may   require the license holder to report regularly to the department   [commission] on matters that are the basis of the probation.          (c)  A disciplinary proceeding under this subtitle is   governed by:                (1)  Chapter 51; and                (2)  commission rules adopted under Chapter 51.          SECTION 7.133.  The heading to Section 2033.152, Occupations   Code, is amended to read as follows:          Sec. 2033.152.  PROCEEDING FOR DISCIPLINARY ACTION   [HEARING] CONCERNING SUSPENSION, REVOCATION, OR REFUSAL TO RENEW   LICENSE.          SECTION 7.134.  Section 2033.152(b), Occupations Code, is   amended to read as follows:          (b)  A proceeding [Proceedings] for a disciplinary action,   other than those conducted by a steward or judge, in which the   commission proposes to suspend, revoke, or refuse to renew a   person's license is [are] governed by Chapter 2001, Government   Code.          SECTION 7.135.  Section 2033.153, Occupations Code, is   amended to read as follows:          Sec. 2033.153.  INJUNCTION. The department [commission] may   institute an action in its own name to enjoin the violation of this   subtitle. An action for an injunction is in addition to any other   action, proceeding, or remedy authorized by law.          SECTION 7.136.  Section 2033.154(b), Occupations Code, is   amended to read as follows:          (b)  The executive director may issue an order prohibiting   the racetrack association from making any transfer from a bank   account held by the racetrack association for the conduct of   business under this subtitle, pending department [commission]   review of the records of the account, if the executive director   reasonably believes that the racetrack association has failed to   maintain the proper amount of money in the horsemen's account. The   executive director shall provide in the order a procedure for the   racetrack association to pay certain expenses necessary for the   operation of the racetrack, subject to the executive director's   approval.          SECTION 7.137.  Section 2034.001, Occupations Code, is   amended by amending Subsections (b) and (c) and adding Subsection   (e) to read as follows:          (b)  The rules adopted under this section by the commission   shall require testing to determine whether a prohibited substance   has been used.          (c)  The [commission's] rules adopted under this section   must require state-of-the-art testing methods. The testing may:                (1)  be prerace or postrace as determined by the   department [commission]; and                (2)  be by an invasive or noninvasive method.          (e)  The commission shall adopt rules regarding disciplinary   actions under this chapter, including the right of appeal to the   commission from a disciplinary action under Section 2034.006.          SECTION 7.138.  Section 2034.002, Occupations Code, is   amended to read as follows:          Sec. 2034.002.  MEDICATION AND DRUG TESTING PROCEDURES. (a)   Medication or drug testing performed on a race animal under this   subtitle must be conducted by:                (1)  the Texas A&M Veterinary Medical Diagnostic   Laboratory; or                (2)  a laboratory operated by or in conjunction with or   by a private or public agency selected by the department   [commission] after consultation with the Texas A&M Veterinary   Medical Diagnostic Laboratory.          (b)  Medication or drug testing performed on a human under   this subtitle must be conducted by a laboratory approved by the   department [commission].          SECTION 7.139.  Sections 2034.003(c), (d), and (e),   Occupations Code, are amended to read as follows:          (c)  Charges for services performed under this section must   be forwarded to the department [commission] for approval of the   reasonableness of the charges. Charges may include expenses   incurred for travel, lodging, testing, and processing of test   results.          (d)  The department [commission] shall determine whether the   laboratory charges are reasonable in relation to industry standards   by periodically surveying the drug testing charges of comparable   laboratories in the United States.          (e)  The racetrack association that receives the services is   responsible for the cost of approved charges for animal drug   testing services under this section. The department [commission]   shall forward a copy of the charges to the racetrack association for   immediate payment.          SECTION 7.140.  Sections 2034.005(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The department [commission] may require urine samples   to be frozen for a period necessary to allow any follow-up testing   to detect and identify a prohibited substance. Any other specimen   shall be maintained for testing purposes in a manner required by   commission rule.          (b)  If a test sample or specimen shows the presence of a   prohibited substance, the entire sample, including any split   portion remaining in the custody of the department [commission],   shall be maintained until final disposition of the matter.          SECTION 7.141.  Section 2034.007, Occupations Code, is   amended to read as follows:          Sec. 2034.007.  DISCIPLINARY ACTION FOR RULE VIOLATION OF   PROHIBITED DEVICE OR SUBSTANCE.  In addition to any other   disciplinary action authorized by Chapter 51, this subtitle, or   commission rule, a [A] person who violates a rule adopted under this   chapter may:                (1)  have any license issued to the person by the   department [commission] revoked or suspended; or                (2)  be barred for life or any other period from   applying for or receiving a license issued by the department   [commission] or entering any portion of a racetrack.          SECTION 7.142.  Section 2035.001(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] may not issue a racetrack   license or accept a license application for a racetrack to be   located in a county until the commissioners court has certified to   the secretary of state that the qualified voters of the county have   approved the legalization of pari-mutuel wagering on horse races or   greyhound races in the county at an election held under this   chapter.          SECTION 7.143.  Section 2035.052, Occupations Code, is   amended to read as follows:          Sec. 2035.052.  PARTIES.   Any person who is licensed or who   has submitted to the department [commission] an application to be   licensed in any capacity under this subtitle may become a named   party to the contest proceedings by pleading to the petition on or   before the time set for hearing and trial as provided by Section   2035.053(b) or after that time by intervention on leave of court.          SECTION 7.144.  Section 151.801(c-3), Tax Code, is amended   to read as follows:          (c-3)  Subject to the limitation imposed under Section   2028.2041, Occupations Code, an amount equal to the proceeds from   the collection of the taxes imposed by this chapter on the sale,   storage, or use of horse feed, horse supplements, horse tack, horse   bedding and grooming supplies, and other taxable expenditures   directly related to horse ownership, riding, or boarding shall be   deposited to the credit of the horse industry escrow account   administered by the Texas Department of Licensing and Regulation   [Racing Commission] and established under Section 2028.204,   Occupations Code.          SECTION 7.145.  Article 2.12, Code of Criminal Procedure, is   amended to read as follows:          Art. 2.12.  WHO ARE PEACE OFFICERS. The following are peace   officers:                (1)  sheriffs, their deputies, and those reserve   deputies who hold a permanent peace officer license issued under   Chapter 1701, Occupations Code;                (2)  constables, deputy constables, and those reserve   deputy constables who hold a permanent peace officer license issued   under Chapter 1701, Occupations Code;                (3)  marshals or police officers of an incorporated   city, town, or village, and those reserve municipal police officers   who hold a permanent peace officer license issued under Chapter   1701, Occupations Code;                (4)  rangers, officers, and members of the reserve   officer corps commissioned by the Public Safety Commission and the   Director of the Department of Public Safety;                (5)  investigators of the district attorneys', criminal   district attorneys', and county attorneys' offices;                (6)  law enforcement agents of the Texas Alcoholic   Beverage Commission;                (7)  each member of an arson investigating unit   commissioned by a city, a county, or the state;                (8)  officers commissioned under Section 37.081,   Education Code, or Subchapter E, Chapter 51, Education Code;                (9)  officers commissioned by the General Services   Commission;                (10)  law enforcement officers commissioned by the   Parks and Wildlife Commission;                (11)  airport police officers commissioned by a city   with a population of more than 1.18 million located primarily in a   county with a population of 2 million or more that operates an   airport that serves commercial air carriers;                (12)  airport security personnel commissioned as peace   officers by the governing body of any political subdivision of this   state, other than a city described by Subdivision (11), that   operates an airport that serves commercial air carriers;                (13)  municipal park and recreational patrolmen and   security officers;                (14)  security officers and investigators commissioned   as peace officers by the comptroller;                (15)  officers commissioned by a water control and   improvement district under Section 49.216, Water Code;                (16)  officers commissioned by a board of trustees   under Chapter 54, Transportation Code;                (17)  investigators commissioned by the Texas Medical   Board;                (18)  officers commissioned by:                      (A)  the board of managers of the Dallas County   Hospital District, the Tarrant County Hospital District, the Bexar   County Hospital District, or the El Paso County Hospital District   under Section 281.057, Health and Safety Code;                      (B)  the board of directors of the Ector County   Hospital District under Section 1024.117, Special District Local   Laws Code;                      (C)  the board of directors of the Midland County   Hospital District of Midland County, Texas, under Section 1061.121,   Special District Local Laws Code; and                      (D)  the board of hospital managers of the Lubbock   County Hospital District of Lubbock County, Texas, under Section   1053.113, Special District Local Laws Code;                (19)  county park rangers commissioned under   Subchapter E, Chapter 351, Local Government Code;                (20)  investigators employed by the Texas Department of   Licensing and Regulation in relation to the regulation of racing   under Subtitle A-1, Title 13, Occupations Code [Racing Commission];                (21)  officers commissioned under Chapter 554,   Occupations Code;                (22)  officers commissioned by the governing body of a   metropolitan rapid transit authority under Section 451.108,   Transportation Code, or by a regional transportation authority   under Section 452.110, Transportation Code;                (23)  investigators commissioned by the attorney   general under Section 402.009, Government Code;                (24)  security officers and investigators commissioned   as peace officers under Chapter 466, Government Code;                (25)  officers appointed by an appellate court under   Subchapter F, Chapter 53, Government Code;                (26)  officers commissioned by the state fire marshal   under Chapter 417, Government Code;                (27)  an investigator commissioned by the commissioner   of insurance under Section 701.104, Insurance Code;                (28)  apprehension specialists and inspectors general   commissioned by the Texas Juvenile Justice Department as officers   under Sections 242.102 and 243.052, Human Resources Code;                (29)  officers appointed by the inspector general of   the Texas Department of Criminal Justice under Section 493.019,   Government Code;                (30)  investigators commissioned by the Texas   Commission on Law Enforcement under Section 1701.160, Occupations   Code;                (31)  commission investigators commissioned by the   Texas Private Security Board under Section 1702.061, Occupations   Code;                (32)  the fire marshal and any officers, inspectors, or   investigators commissioned by an emergency services district under   Chapter 775, Health and Safety Code;                (33)  officers commissioned by the State Board of   Dental Examiners under Section 254.013, Occupations Code, subject   to the limitations imposed by that section;                (34)  investigators commissioned by the Texas Juvenile   Justice Department as officers under Section 221.011, Human   Resources Code; and                (35)  the fire marshal and any related officers,   inspectors, or investigators commissioned by a county under   Subchapter B, Chapter 352, Local Government Code.          SECTION 7.146.  (a) Section 411.096, Government Code, is   repealed.          (b)  The following provisions of the Occupations Code are   repealed:                (1)  Sections 2022.001(b), (c), (d), (e), and (f);                (2)  Section 2022.002(b);                (3)  Sections 2022.003, 2022.004, 2022.005, 2022.006,   and 2022.007;                (4)  Sections 2022.009(b) and (c);                (5)  Sections 2022.010, 2022.011, 2022.012, 2022.013,   2022.014, and 2022.051;                (6)  Sections 2022.052(a) and (b);                (7)  Sections 2022.053, 2022.054, 2022.055, 2022.056,   2022.057, 2022.101, 2022.102, and 2022.106;                (8)  Sections 2023.004(b), (c), and (f);                (9)  Section 2023.009;                (10)  Section 2025.204(e);                (11)  Section 2025.258(b);                (12)  Sections 2033.053, 2033.054, 2033.055, and   2033.056;                (13)  Section 2033.057(b); and                (14)  Sections 2033.152(a) and (c).          (c)  Title 6, Vernon's Texas Civil Statutes, is repealed.          SECTION 7.147.  (a) On September 1, 2021, the Texas Racing   Commission is abolished but continues in existence until December   1, 2021, for the sole purpose of transferring all obligations,   property, rights, powers, duties, leases, contracts, software,   data, and full-time equivalent employee positions to the Texas   Department of Licensing and Regulation. The Texas Department of   Licensing and Regulation assumes all of the obligations, property,   rights, powers, duties, leases, contracts, software, data, and   full-time equivalent employee positions of the Texas Racing   Commission as they exist immediately before September 1, 2021. All   unexpended funds appropriated to the Texas Racing Commission are   transferred to the Texas Department of Licensing and Regulation.          (b)  On September 1, 2021, all full-time equivalent employee   positions at the Texas Racing Commission become positions at the   Texas Department of Licensing and Regulation. On September 1,   2021, all employees who were employed by the Texas Racing   Commission on August 31, 2021, become employees of the Texas   Department of Licensing and Regulation, except for any employee in:                (1)  an exempt position; or                (2)  a position at or above salary group B27 in the   Texas Position Classification Plan, 1961.          (c)  The Texas Racing Commission and the Texas Department of   Licensing and Regulation shall, in consultation with appropriate   state entities, ensure that the transfer of the obligations,   property, rights, powers, duties, leases, contracts, software,   data, and full-time equivalent employee positions of the Texas   Racing Commission to the Texas Department of Licensing and   Regulation is completed not later than December 1, 2021.          (d)  All rules, fees, policies, procedures, decisions, and   forms adopted by the Texas Racing Commission are continued in   effect as rules, fees, policies, procedures, decisions, and forms   adopted by the Texas Department of Licensing and Regulation until   amended or superseded by a rule, fee, policy, procedure, decision,   or form adopted by the Texas Commission of Licensing and Regulation   or Texas Department of Licensing and Regulation, as applicable. A   license issued by the Texas Racing Commission is continued in   effect as provided by the law in effect immediately before   September 1, 2021. An application for a license, endorsement, or   certificate of registration pending on September 1, 2021, is   continued without change in status after September 1, 2021. A   complaint, investigation, contested case, or other proceeding   pending on September 1, 2021, is continued without change in status   after September 1, 2021.          (e)  Beginning on the effective date of this subsection, the   Texas Racing Commission shall provide the Texas Department of   Licensing and Regulation, and other appropriate state entities,   access to any systems or information necessary for the Texas   Department of Licensing and Regulation to accept the obligations,   property, rights, powers, duties, leases, contracts, software,   data, and full-time equivalent employee positions transferred   under this Act, including:                (1)  licensing, revenue, and expenditure systems and   any associated databases;                (2)  contracts, leases, and licensing agreements;                (3)  online renewal and new application systems and any   associated databases;                (4)  pending judgments and outstanding expenditures;   and                (5)  data related to persons employed by or contracted   with the Texas Racing Commission.          (f)  Not later than September 1, 2022, the Texas Commission   of Licensing and Regulation shall adopt any rules necessary to   implement the changes in law made by this Act to Subtitle A-1, Title   13, Occupations Code.          (g)  Unless the context indicates otherwise, a reference to   the Texas Racing Commission in a law or administrative rule means   the Texas Department of Licensing and Regulation.          SECTION 7.148.  (a) Not later than December 1, 2021, the   presiding officer of the Texas Commission of Licensing and   Regulation, with the approval of the Texas Commission of Licensing   and Regulation, shall appoint members to the Texas Racing Advisory   Board in accordance with Section 2022.001, Occupations Code, as   amended by this Act. A member of the Texas Racing Commission whose   term expired under Section 7.147 of this Act is eligible for   appointment to the advisory board.          (b)  The members of the Texas Racing Commission whose terms   expire under Section 7.147 of this Act shall continue to provide   advice to the Texas Department of Licensing and Regulation until a   majority of the members of the Texas Racing Advisory Board are   appointed under Subsection (a) of this section and qualified.          SECTION 7.149.  (a)  Not later than September 1, 2023, the   executive director of the Texas Department of Licensing and   Regulation in accordance with Section 51.202(c), Occupations Code,   shall determine with reasonable accuracy the cost to the department   of the racing program and activities for which a fee is charged.          (b)  The executive director of the Texas Department of   Licensing and Regulation, on development of the cost management   procedures, shall make recommendations to the Texas Commission of   Licensing and Regulation for review and consideration.          SECTION 7.150.  The changes in law made by this article apply   to revenue received from the imposition of an administrative   penalty on or after September 1, 2021, regardless of whether the   penalty was imposed before, on, or after September 1, 2021.          SECTION 7.151.  A violation of a law that is repealed by this   article is governed by the law in effect when the violation   occurred, and the former law is continued in effect for that   purpose.   ARTICLE 8. TRANSITION AND EFFECTIVE DATE          SECTION 8.01.  The repeal of a statute by this Act controls   over an amendment, revision, or reenactment of the statute by   another Act of the 87th Legislature, Regular Session, 2021,   regardless of relative dates of enactment and the amendment,   revision, or reenactment of the repealed statute has no effect.          SECTION 8.02.  (a) Except as otherwise provided by   Subsection (b) of this section, this Act takes effect September 1,   2021.          (b)  Section 7.147(e) of this Act takes effect June 15, 2021,   if this Act receives a vote of two-thirds of all the members elected   to each house, as provided by Section 39, Article III, Texas   Constitution. If this Act does not receive the vote necessary for   immediate effect, Section 7.147(e) of this Act takes effect   September 1, 2021.     * * * * *