87R3491 DRS/ANG/CXP/JES-D     By: Goldman H.B. No. 1560       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)  Notwithstanding Chapter 551, Government Code, an   advisory board may meet by telephone conference call,   videoconference, or other similar telecommunication method. A   meeting held by telephone conference call, videoconference, or   other similar telecommunication method is subject to the   requirements of Sections 551.125(c), (d), (e), and (f), 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 commission   shall adopt rules for conducting inspections based on risk to the   public.          (b)  The rules must provide for the prioritization of   inspections based on the following factors:                (1)  whether a license holder has repeatedly violated a   law establishing a regulatory program administered by the   department or a rule or order of the commission or executive   director;                (2)  the number of complaints filed against a license   holder;                (3)  negative publicity regarding a license holder; and                (4)  any other risk-based factor identified by the   commission.          (c)  The commission may adopt rules that provide for the use   of alternative inspection methods, including the use of   videoconference technology or other methods instead of conducting   an in-person inspection, in circumstances the commission considers   appropriate.          SECTION 1.05.  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 1.06.  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 commission determines at any time that an   allegation made or formal complaint submitted by a person is   inappropriate or without merit, the commission shall dismiss the   complaint and no further action may be taken. The commission may   delegate to the department the duty to dismiss complaints under   this subsection. The department shall inform the commission of all   dismissals made under this subsection.          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)  the manner in which complaints were resolved   categorized by the nature of the alleged violation; 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.          SECTION 1.07.  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 1.08.  Subchapter G, Chapter 51, Occupations Code,   is amended by adding Sections 51.3531 and 51.359 to read as follows:          Sec. 51.3531.  DENIAL OF LICENSE RENEWAL. The commission   may deny the renewal of a license if the applicant is in violation   of an order of the commission or the executive director.          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 other 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 1.09.  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 1.10.  Section 51.405, Occupations Code, is amended   to read as follows:          Sec. 51.405.  CONTINUING EDUCATION. (a) The 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)  The commission by rule may establish a minimum number of   hours of continuing education required for license renewal.          (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 1.11.  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 a license or   suspend or revoke a license on the grounds that a business has   failed to disclose a relationship for which disclosure is required   by rules adopted under this section.          SECTION 1.12.  Section 755.025(a), Health and Safety Code,   is amended to read as follows:          (a)  The executive director shall require each boiler to be   inspected internally and externally at the time of initial   installation and at subsequent intervals in accordance with the   rules for risk-based inspections adopted under Section 51.211,   Occupations Code [as provided by this section]. The executive   director may provide that the inspection be performed by any   inspector.          SECTION 1.13.  Section 755.026(a), Health and Safety Code,   is amended to read as follows:          (a)  With the approval of the executive director and the   inspection agency that has jurisdiction for the power boiler, the   interval between internal inspections may be extended in accordance   with the rules for risk-based inspections adopted under Section   51.211, Occupations Code [to a period not exceeding a total of 60   months. For unfired steam boilers or steam collection or   liberation drums of process steam generators, the inspection   interval may be extended to the next scheduled downtime of the   boiler, but not exceeding a total of:                [(1)  84 months for unfired steam boilers;                [(2)  120 months for steam collection or liberation   drums of process steam generators manufactured before January 1,   1970; or                [(3)  144 months for steam collection or liberation   drums of process steam generators manufactured on or after January   1, 1970].          SECTION 1.14.  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 1.15.  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 1.16.  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 1.17.  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 1.18.  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 2308.159(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 1.23.  The heading to Section 2308.2065, Occupations   Code, is amended to read as follows:          Sec. 2308.2065.  FEES FOR NONCONSENT TOWS [; REFUNDS].          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)  Sections 755.025(b), (c), (d), and (e), Health and   Safety Code;                (7)  Sections 755.026(c) and (c-1), Health and Safety   Code;                (8)  Section 51.0021, Occupations Code;                (9)  Section 51.252(d), Occupations Code;                (10)  Section 202.305, Occupations Code;                (11)  Section 202.5085, Occupations Code;                (12)  Section 203.304, Occupations Code;                (13)  Section 203.406, Occupations Code;                (14)  Section 401.355, Occupations Code;                (15)  Section 402.303, Occupations Code;                (16)  Section 403.152, Occupations Code;                (17)  Section 455.0571, Occupations Code;                (18)  Section 506.105, Occupations Code;                (19)  Section 605.261, Occupations Code;                (20)  Section 701.303, Occupations Code;                (21)  Section 701.512, Occupations Code;                (22)  Section 802.062(a), Occupations Code;                (23)  Section 802.065(e), Occupations Code;                (24)  Section 1151.1581, Occupations Code;                (25)  Section 1152.204, Occupations Code;                (26)  Section 1302.208(a), Occupations Code;                (27)  Section 1305.055, Occupations Code;                (28)  Section 1305.168, Occupations Code;                (29)  Section 1901.107(a), Occupations Code;                (30)  Section 1952.1051, Occupations Code;                (31)  Section 1958.056(b), Occupations Code;                (32)  Section 2303.056(b), Occupations Code;                (33)  Section 2308.055, Occupations Code;                (34)  Section 2308.157, Occupations Code;                (35)  Section 2308.2065(c), Occupations Code;                (36)  Section 2309.056, Occupations Code; and                (37)  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 the effective date of   this Act.          (b)  A member of the Texas Commission of Licensing and   Regulation who, before the effective date of this Act, completed   the training program required by Section 51.054, Occupations Code,   as that law existed before the effective date of this Act, 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;                (2)  Chapter 1802; and                (3)  Section 2052.002(11-a).          SECTION 2.02.  Articles 18.19(c), (d), and (e), Code of   Criminal Procedure, are amended to read as follows:          (c)  If there is no prosecution or conviction for an offense   involving the weapon seized, the magistrate to whom the seizure was   reported shall, before the 61st day after the date the magistrate   determines that there will be no prosecution or conviction, notify   in writing the person found in possession of the weapon that the   person is entitled to the weapon upon written request to the   magistrate. The magistrate shall order the weapon returned to the   person found in possession before the 61st day after the date the   magistrate receives a request from the person. If the weapon is not   requested before the 61st day after the date of notification, the   magistrate shall, before the 121st day after the date of   notification, order the weapon destroyed, sold at public sale by   the law enforcement agency holding the weapon or by an auctioneer   [licensed under Chapter 1802, Occupations Code], or forfeited to   the state for use by the law enforcement agency holding the weapon   or by a county forensic laboratory designated by the magistrate. If   the magistrate does not order the return, destruction, sale, or   forfeiture of the weapon within the applicable period prescribed by   this subsection, the law enforcement agency holding the weapon may   request an order of destruction, sale, or forfeiture of the weapon   from the magistrate. Only a firearms dealer licensed under 18   U.S.C. Section 923 may purchase a weapon at public sale under this   subsection. Proceeds from the sale of a  seized weapon under this   subsection shall be transferred, after the deduction of court costs   to which a district court clerk is entitled under Article 59.05(f),   followed by the deduction of auction costs, to the law enforcement   agency holding the weapon.          (d)  A person either convicted or receiving deferred   adjudication under Chapter 46, Penal Code, is entitled to the   weapon seized upon request to the court in which the person was   convicted or placed on deferred adjudication. However, the court   entering the judgment shall order the weapon destroyed, sold at   public sale by the law enforcement agency holding the weapon or by   an auctioneer [licensed under Chapter 1802, Occupations Code],  or   forfeited to the state for use by the law enforcement agency holding   the weapon or by a county forensic laboratory designated by the   court if:                (1)  the person does not request the weapon before the   61st day after the date of the judgment of conviction or the order   placing the person on deferred adjudication;                (2)  the person has been previously convicted under   Chapter 46, Penal Code;                (3)  the weapon is one defined as a prohibited weapon   under Chapter 46, Penal Code;                (4)  the offense for which the person is convicted or   receives deferred adjudication was committed in or on the premises   of a playground, school, video arcade facility, or youth center, as   those terms are defined by Section 481.134, Health and Safety Code;   or                (5)  the court determines based on the prior criminal   history of the defendant or based on the circumstances surrounding   the commission of the offense that possession of the seized weapon   would pose a threat to the community or one or more individuals.          (e)  If the person found in possession of a weapon is   convicted of an offense involving the use of the weapon, before the   61st day after the date of conviction the court entering judgment of   conviction shall order destruction of the weapon, sale at public   sale by the law enforcement agency holding the weapon or by an   auctioneer [licensed under Chapter 1802, Occupations Code],  or   forfeiture to the state for use by the law enforcement agency   holding the weapon or by a county forensic laboratory designated by   the court. If the court entering judgment of conviction does not   order the destruction, sale, or forfeiture of the weapon within the   period prescribed by this subsection, the law enforcement agency   holding the weapon may request an order of destruction, sale, or   forfeiture of the weapon from a magistrate. Only a firearms dealer   licensed under 18 U.S.C. Section 923 may purchase a weapon at public   sale under this subsection. Proceeds from the sale of a seized   weapon under this subsection shall be transferred, after the   deduction of court costs to which a district court clerk is entitled   under Article 59.05(f), followed by the deduction of auction costs,   to the law enforcement agency holding the weapon.          SECTION 2.03.  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 2.04.  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 2.05.  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 2.06.  Section 252.022(a), Local Government Code, is   amended to read as follows:          (a)  This chapter does not apply to an expenditure for:                (1)  a procurement made because of a public calamity   that requires the immediate appropriation of money to relieve the   necessity of the municipality's residents or to preserve the   property of the municipality;                (2)  a procurement necessary to preserve or protect the   public health or safety of the municipality's residents;                (3)  a procurement necessary because of unforeseen   damage to public machinery, equipment, or other property;                (4)  a procurement for personal, professional, or   planning services;                (5)  a procurement for work that is performed and paid   for by the day as the work progresses;                (6)  a purchase of land or a right-of-way;                (7)  a procurement of items that are available from   only one source, including:                      (A)  items that are available from only one source   because of patents, copyrights, secret processes, or natural   monopolies;                      (B)  films, manuscripts, or books;                      (C)  gas, water, and other utility services;                      (D)  captive replacement parts or components for   equipment;                      (E)  books, papers, and other library materials   for a public library that are available only from the persons   holding exclusive distribution rights to the materials; and                      (F)  management services provided by a nonprofit   organization to a municipal museum, park, zoo, or other facility to   which the organization has provided significant financial or other   benefits;                (8)  a purchase of rare books, papers, and other   library materials for a public library;                (9)  paving drainage, street widening, and other public   improvements, or related matters, if at least one-third of the cost   is to be paid by or through special assessments levied on property   that will benefit from the improvements;                (10)  a public improvement project, already in   progress, authorized by the voters of the municipality, for which   there is a deficiency of funds for completing the project in   accordance with the plans and purposes authorized by the voters;                (11)  a payment under a contract by which a developer   participates in the construction of a public improvement as   provided by Subchapter C, Chapter 212;                (12)  personal property sold:                      (A)  at an auction [by a state licensed   auctioneer];                      (B)  at a going out of business sale held in   compliance with Subchapter F, Chapter 17, Business & Commerce Code;                      (C)  by a political subdivision of this state, a   state agency of this state, or an entity of the federal government;   or                      (D)  under an interlocal contract for cooperative   purchasing administered by a regional planning commission   established under Chapter 391;                (13)  services performed by blind or severely disabled   persons;                (14)  goods purchased by a municipality for subsequent   retail sale by the municipality;                (15)  electricity; or                (16)  advertising, other than legal notices.          SECTION 2.07.  Section 262.024(a), Local Government Code, is   amended to read as follows:          (a)  A contract for the purchase of any of the following   items is exempt from the requirement established by Section 262.023   if the commissioners court by order grants the exemption:                (1)  an item that must be purchased in a case of public   calamity if it is necessary to make the purchase promptly to relieve   the necessity of the citizens or to preserve the property of the   county;                (2)  an item necessary to preserve or protect the   public health or safety of the residents of the county;                (3)  an item necessary because of unforeseen damage to   public property;                (4)  a personal or professional service;                (5)  any individual work performed and paid for by the   day, as the work progresses, provided that no individual is   compensated under this subsection for more than 20 working days in   any three month period;                (6)  any land or right-of-way;                (7)  an item that can be obtained from only one source,   including:                      (A)  items for which competition is precluded   because of the existence of patents, copyrights, secret processes,   or monopolies;                      (B)  films, manuscripts, or books;                      (C)  electric power, gas, water, and other utility   services; and                      (D)  captive replacement parts or components for   equipment;                (8)  an item of food;                (9)  personal property sold:                      (A)  at an auction [by a state licensed   auctioneer];                      (B)  at a going out of business sale held in   compliance with Subchapter F, Chapter 17, Business & Commerce Code;   or                      (C)  by a political subdivision of this state, a   state agency of this state, or an entity of the federal government;                (10)  any work performed under a contract for community   and economic development made by a county under Section 381.004; or                (11)  vehicle and equipment repairs.          SECTION 2.08.  Section 263.153(c), Local Government Code, is   amended to read as follows:          (c)  A county that contracts with an auctioneer [licensed   under Chapter 1802, Occupations Code,] who uses an Internet auction   site offering online bidding through the Internet to sell surplus   or salvage property under this subchapter having an estimated value   of not more than $500 shall satisfy the notice requirement under   this section by posting the property on the site for at least 10   days unless the property is sold before the 10th day.          SECTION 2.09.  Section 1101.005, Occupations Code, is   amended to read as follows:          Sec. 1101.005.  APPLICABILITY OF CHAPTER.  This chapter   does not apply to:                (1)  an attorney licensed in this state;                (2)  an attorney-in-fact authorized under a power of   attorney to conduct not more than three real estate transactions   annually;                (3)  a public official while engaged in official   duties;                (4)  an auctioneer [licensed under Chapter 1802] while   conducting the sale of real estate by auction if the auctioneer does   not perform another act of a broker;                (5)  a person conducting a real estate transaction   under a court order or the authority of a will or written trust   instrument;                (6)  a person employed by an owner in the sale of   structures and land on which structures are located if the   structures are erected by the owner in the course of the owner's   business;                (7)  an on-site manager of an apartment complex;                (8)  an owner or the owner's employee who leases the   owner's improved or unimproved real estate; or                (9)  a transaction involving:                      (A)  the sale, lease, or transfer of a mineral or   mining interest in real property;                      (B)  the sale, lease, or transfer of a cemetery   lot;                      (C)  the lease or management of a hotel or motel;   or                      (D)  the sale of real property under a power of   sale conferred by a deed of trust or other contract lien.          SECTION 2.10.  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 2.11.  Sections 33.25(b), (f), and (g), Tax Code,   are amended to read as follows:          (b)  The commissioners court of a county having a population   of three million or more by official action may authorize a peace   officer or the collector for the county charged with selling   property under this subchapter by public auction to enter into an   agreement with an auctioneer [a person who holds an auctioneer's   license] to advertise the auction sale of the property and to   conduct the auction sale of the property. The agreement may provide   for on-line bidding and sale.          (f)  The proceeds of a sale of property under this section   shall be applied to:                (1)  any compensation owed to or any expense advanced   by the [licensed] auctioneer under an agreement entered into under   Subsection (b) or a service provider under an agreement entered   into under Subsection (c);                (2)  all usual costs, expenses, and fees of the seizure   and sale, payable to the peace officer conducting the sale;                (3)  all additional expenses incurred in advertising   the sale or in removing, storing, preserving, or safeguarding the   seized property pending its sale;                (4)  all usual court costs payable to the clerk of the   court that issued the tax warrant; and                (5)  taxes, penalties, interest, and attorney's fees   included in the application for warrant.          (g)  The peace officer or [licensed] auctioneer conducting   the sale shall pay all proceeds from the sale to the collector   designated in the tax warrant for distribution as required by   Subsection (f).          SECTION 2.12.  Section 460.406(c), Transportation Code, is   amended to read as follows:          (c)  The board of directors may authorize the negotiation of   a contract without competitive sealed bids or proposals if:                (1)  the aggregate amount involved in the contract is   less than the greater of:                      (A)  $50,000; or                      (B)  the amount of an expenditure under a contract   that would require a municipality to comply with Section   252.021(a), Local Government Code;                (2)  the contract is for construction for which not   more than one bid or proposal is received;                (3)  the contract is for services or property for which   there is only one source or for which it is otherwise impracticable   to obtain competition, including:                      (A)  items that are available from only one source   because of patents, copyrights, secret processes, or natural   monopolies;                      (B)  gas, water, and other utility services; and                      (C)  captive replacement parts or components for   equipment;                (4)  the contract is to respond to an emergency for   which the public exigency does not permit the delay incident to the   competitive process;                (5)  the contract is for personal, professional, or   planning services;                (6)  the contract, without regard to form and which may   include bonds, notes, loan agreements, or other obligations, is for   the purpose of borrowing money or is a part of a transaction   relating to the borrowing of money, including:                      (A)  a credit support agreement, such as a line or   letter of credit or other debt guaranty;                      (B)  a bond, note, debt sale or purchase, trustee,   paying agent, remarketing agent, indexing agent, or similar   agreement;                      (C)  an agreement with a securities dealer,   broker, or underwriter; and                      (D)  any other contract or agreement considered by   the board of directors to be appropriate or necessary in support of   the authority's financing activities;                (7)  the contract is for work that is performed and paid   for by the day as the work progresses;                (8)  the contract is for the lease or purchase of an   interest in land;                (9)  the contract is for the purchase of personal   property sold:                      (A)  at an auction [by a state licensed   auctioneer];                      (B)  at a going out of business sale held in   compliance with Subchapter F, Chapter 17, Business & Commerce Code;   or                      (C)  by a political subdivision of this state, a   state agency, or an entity of the federal government;                (10)  the contract is for services performed by persons   who are blind or have severe disabilities;                (11)  the contract is for the purchase of electricity;                (12)  the contract is one for an authority project and   awarded for alternate project delivery using the procedures,   requirements, and limitations under Subchapters E, F, G, H, and I,   Chapter 2269, Government Code; or                (13)  the contract is for fare enforcement officer   services under Section 460.1092.          SECTION 2.13.  Sections 503.024(b) and (d), Transportation   Code, are amended to read as follows:          (b)  For the purposes of Section 503.021, a person is not   engaging in business as a dealer by:                (1)  selling or offering to sell, if the sale or offer   is not made to avoid a requirement of this chapter, a vehicle the   person acquired for personal or business use to:                      (A)  a person other than a retail buyer if not sold   or offered through an [a licensed] auctioneer; or                      (B)  any person if the sale or offer is made   through an [a licensed] auctioneer;                (2)  selling, in a manner provided by law for the forced   sale of vehicles, a vehicle in which the person holds a security   interest;                (3)  acting under a court order as a receiver, trustee,   administrator, executor, guardian, or other appointed person;                (4)  selling a vehicle the person acquired from the   vehicle's owner as a result of paying an insurance claim if the   person is an insurance company;                (5)  selling an antique passenger car or truck that is   at least 25 years of age; or                (6)  selling a special interest vehicle that is at   least 12 years of age if the person is a collector.          (d)  For the purposes of Section 503.021, an [a licensed]   auctioneer is not engaging in business as a dealer by, as a bid   caller, selling or offering to sell property, including a business   that holds the title to any number of vehicles, to the highest   bidder at a bona fide auction if:                (1)  legal or equitable title does not pass to the   auctioneer;                (2)  the auction is not held to avoid a requirement of   this chapter; and                (3)  for an auction of vehicles owned legally or   equitably by a person who holds a general distinguishing number,   the auction is conducted at the location for which the general   distinguishing number was issued.          SECTION 2.14.  On the effective date of this Act:                (1)  the Polygraph Advisory Committee is abolished;                (2)  the Auctioneer Advisory Board is abolished; and                (3)  money in the auctioneer education and recovery   fund is transferred to the general revenue fund.          SECTION 2.15.  On the effective date of this Act, 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 2.16.  On the effective date of this Act, a license,   permit, or certification issued under a law repealed by this   article expires.   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 that holds a license   issued under Subchapter E-2 in which barbering or cosmetology is   practiced.                (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 place that holds a license issued   under Subchapter E-3 to teach barbering or cosmetology.          [(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, 1603.0013, and   1603.0014 to read as follows:          Sec. 1603.0011.  DEFINITION OF BARBERING. In this chapter,   "barbering" means:                (1)  the practice of performing or offering or   attempting to perform for compensation or the promise of   compensation any of the following services:                      (A)  treating a person's mustache or beard by   arranging, beautifying, coloring, processing, shaving, styling, or   trimming;                      (B)  treating a person's hair by:                            (i)  arranging, beautifying, bleaching,   cleansing, coloring, curling, dressing, dyeing, processing,   shaping, singeing, straightening, styling, tinting, or waving;                            (ii)  providing a necessary service that is   preparatory or ancillary to a service under Subparagraph (i),   including bobbing, clipping, cutting, or trimming; or                            (iii)  cutting the person's hair as a   separate and independent service for which a charge is directly or   indirectly made separately from a charge for any other service;                      (C)  cleansing, stimulating, or massaging a   person's scalp, face, neck, arms, or shoulders:                            (i)  by hand or by using a device, apparatus,   or appliance; and                            (ii)  with or without the use of any cosmetic   preparation, antiseptic, tonic, lotion, or cream;                      (D)  beautifying a person's face, neck, arms, or   shoulders using a cosmetic preparation, antiseptic, tonic, lotion,   powder, oil, clay, cream, or appliance;                      (E)  treating a person's nails by:                            (i)  cutting, trimming, polishing, tinting,   coloring, cleansing, manicuring, or pedicuring; or                            (ii)  attaching false nails;                      (F)  massaging, cleansing, treating, or   beautifying a person's hands;                      (G)  administering facial treatments; or                      (H)  weaving a person's hair by using any method   to attach commercial hair to a person's hair or scalp;                (2)  advertising or representing to the public in any   manner that a person is a barber or is authorized to practice   barbering; or                (3)  advertising or representing to the public in any   manner that a location or place of business is an establishment or   school.          Sec. 1603.0012.  DEFINITION OF COSMETOLOGY. (a)  In this   chapter, "cosmetology" means the practice of performing or offering   to perform for compensation any of the following services:                (1)  treating a person's hair by:                      (A)  providing any method of treatment as a   primary service, including arranging, beautifying, bleaching,   cleansing, coloring, cutting, dressing, dyeing, processing,   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, 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, 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, or manicuring; or                      (B)  attaching false nails;                (8)  massaging, cleansing, treating, or beautifying a   person's hands or feet;                (9)  applying semipermanent, thread-like extensions   composed of single fibers to a person's eyelashes; or                (10)  weaving a person's hair.          (b)  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. 1603.0013.  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:                      (A)  Section 1603.0011(1)(B); or                      (B)  Section 1603.0012(a)(1).          Sec. 1603.0014.  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 [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; TERM. (a) Subject to   Subsection (b), the presiding officer of the commission shall   designate a member of the advisory board to serve as the presiding   officer of the advisory board for a two-year term.          (b)  The presiding officer of the commission shall designate   each member of the advisory board who represents the public to serve   as the presiding officer of the advisory board for at least one   term.          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.  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 3.08.  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 3.09.  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 3.10.  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 3.11.  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 3.12.  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)  A requirement established for the issuance of a license   must be the least restrictive requirement possible to ensure public   safety without creating a barrier to entry into the licensed   occupation.          (c)  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.          (d)  The commission, as appropriate, shall establish   standardized requirements within license categories.          SECTION 3.13.  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 3.14.  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 3.15.  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 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 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.  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   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 3.16.  Subchapter E, Chapter 1603, Occupations Code,   is amended by adding Sections 1603.2041 and 1603.2042 to read as   follows:          Sec. 1603.2041.  INACTIVE STATUS. (a) The holder of a   license issued under this chapter may place the license on inactive   status by:                (1)  applying to the commission on a form prescribed by   the commission not later than the 10th day before the date the   license expires; and                (2)  paying the required fee.          (b)  The holder of a license that has been placed on inactive   status under this section is not required to comply with any   continuing education requirements established by the commission   under this chapter.          (c)  To maintain inactive status, the holder of a license   must reapply for inactive status on or before the second   anniversary of the date the status is granted by submitting the   required form accompanied by the required renewal fee.          (d)  The holder of a license to practice barbering or   cosmetology that has been placed on inactive status under this   section may not perform or attempt to perform the practice of   barbering or cosmetology.          (e)  A person whose license is on inactive status under this   section may return the person's license to active status by:                (1)  applying to the commission for reinstatement of   the license on the form prescribed by the commission;                (2)  submitting written documentation that the person   has completed any applicable continuing education requirements   under this chapter within the preceding two years; and                (3)  paying the required license fee.          Sec. 1603.2042.  REINSTATEMENT OF EXPIRED LICENSE BY   RETIREE. A license holder who retires from practice and whose   license under Subchapter E-1 has been expired for more than five   years may qualify for a new license by applying to the department   and by:                (1)  making a proper showing to the department,   supported by a personal affidavit;                (2)  paying the required examination fee;                (3)  passing a satisfactory examination conducted by   the department; and                (4)  paying the fee for an original license.          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.  LICENSE OR 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 LICENSE. The department shall   issue a 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 1603.0012(a)(7) or (8);                (4)  an esthetician license may perform any service   described by Section 1603.0012(a)(3), (4), (5), (6), or (9);                (5)  a manicurist/esthetician license may perform any   service described by Section 1603.0012(a)(3), (4), (5), (6), (7),   (8), or (9);                (6)  a hair weaving specialist license may perform any   service described by Section 1603.0012(a)(10);                (7)  a hair weaving specialist/esthetician license may   perform any service described by Section 1603.0012(a)(3), (4), (5),   (6), (9), or (10); and                (8)  an eyelash extension specialist license may   perform any service described by Section 1603.0012(a)(9).          (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 shall issue a license to an applicant for a   Class A barber license described by Section 1603.2103(a)(1), a   cosmetology operator license described by Section   1603.2103(a)(2), an esthetician license described by Section   1603.2103(a)(4), a hair weaving specialist license described by   Section 1603.2103(a)(6), or a hair weaving specialist/esthetician   license described by Section 1603.2103(a)(7) 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.          (b)  The department may waive any requirement for a license   issued under this subchapter, other than a license listed in   Subsection (a), for an applicant holding a license from another   state or country 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,   reenrollment, or transfer enrollment. The application fee applies   only to the first enrollment. The department may not charge the   application fee for any later enrollment, reenrollment, or transfer   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 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.          (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 or permit under this   subchapter may perform a service within the scope of the license or   permit 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 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 1603.0012(a)(7) or (8);                (3)  an esthetician specialty establishment may   provide any service described by Section 1603.0012(a)(3), (4), (5),   (6), or (9);                (4)  a manicurist/esthetician specialty establishment   may provide any service described by Section 1603.0012(a)(3), (4),   (5), (6), (7), (8), or (9);                (5)  a hair weaving specialty establishment may provide   any service described by Section 1603.0012(a)(10);                (6)  an eyelash extension specialty establishment may   provide any service described by Section 1603.0012(a)(9);                (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 determined by commission rule 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:                (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; and                (4)  satisfies any other requirements of this chapter   or commission rule.          Sec. 1603.2303.  SCHOOL LICENSES. The holder of a public   secondary school license, private postsecondary school license, or   public postsecondary school license may provide instruction in the   barbering or cosmetology services for which the license holder has   been approved by the department.          Sec. 1603.2304.  CHANGE OF SCHOOL OWNERSHIP OR LOCATION.   (a) If a licensed school changes ownership, the outgoing owner   shall notify the department of the change not later than the 10th   day before the date the change takes effect.          (b)  A licensed school under this subchapter 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:                (1)  place a sign on the front outside portion of the   school's building in a prominent place that reads in at least   10-inch block letters: "SCHOOL--STUDENT PRACTITIONERS"; and                (2)  prominently display printed signs containing the   information required by Subdivision (1) on each inside wall of the   school.          Sec. 1603.2306.  INFORMATION PROVIDED TO PROSPECTIVE   STUDENT. The holder of a school license shall provide to each   prospective student:                (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 licensed 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 licensed school must submit to the commission 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 commission.          (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 licensed 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.          Sec. 1603.2309.  DAILY ATTENDANCE RECORDS. (a) A licensed   school shall maintain an attendance book showing a record of the   students' daily attendance.          (b)  The department may inspect a school's attendance record   book 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 credit 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:                (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. (a)   The holder of a school license shall:                (1)  establish regular class and instruction hours and   grades;                (2)  hold examinations before issuing diplomas; and                (3)  maintain a copy of the school's curriculum in a   conspicuous place and verify that the curriculum is being followed.          (b)  The holder of a school license may not require a student   to work, be instructed, or earn credit for more than 48 hours in a   calendar week.          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 executive director.          (c)  In evaluating a student's transcript, the executive   director shall determine whether the agreed tuition has been paid.   If the tuition has not been paid, the executive director 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 executive director   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.          (e)  If a school's license has been expired for more than 30   days, a student of that school may not transfer hours of instruction   the student completed at that school.          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 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)  a renewal fee in an amount equal to the original   license fee.          Sec. 1603.3004.  RENEWAL WHILE IN ARMED FORCES. (a) The   department may not require the holder of a Class A barber license   described by Section 1603.2103(1), a cosmetology operator license   described by Section 1603.2103(2), a manicurist license described   by Section 1603.2103(3), an esthetician license described by   Section 1603.2103(4), or a manicurist/esthetician license   described by Section 1603.2103(5) 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   1603.0012(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, and Vietnamese; 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 or   school on the same premises as another one of those facilities   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 fails to withdraw from the course   of training before the cancellation period 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.          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 shall deny an application for issuance or renewal of, or   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[,   Chapter 51, Chapter 1601, or Chapter 1602] or a rule or order   adopted or issued under this chapter [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 the effective date of this Act, 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, 2022:                (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 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, 2022, a   certificate, license, or permit under those provisions as they   existed immediately before the effective date of this Act, 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 the effective date of this Act, 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 the effective date of this Act, 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 the effective date of this Act 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.          SECTION 3.38.  Notwithstanding any other law, on the   effective date of this Act, 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 the effective date of this Act   may employ or contract with any qualified individual practitioner   holding a certificate, license, or permit issued under Chapter 1601   or 1602, Occupations Code, before the effective date of this Act,   without regard to the chapter under which the practitioner was   issued the certificate, license, or permit.          SECTION 3.39.  Notwithstanding any other law, on the   effective date of this Act, the holder of a license issued under   former Section 1601.256, 1601.262, or 1601.263, Occupations Code,   before the effective date of this Act may perform the services   described by Sections 1603.0012(a)(6) and (9), Occupations Code, as   added by this Act.          SECTION 3.40.  (a) On the effective date of this Act, the   Advisory Board on Barbering and the Advisory Board on Cosmetology   are abolished.          (b)  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.          (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 the effective   date of this Act, 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 the effective date of this Act   and that is pending on the effective date of this Act. A   disciplinary action that is pending on the effective date of this   Act is governed by the law in effect immediately before the   effective date of this Act, 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 the effective date of this Act.     ARTICLE 4. DRIVER TRAINING          SECTION 4.01.  Section 1001.001, Education Code, is amended   by adding Subdivisions (2-a), (6-a), (6-b), (14-b), (14-c), and   (14-d) and amending Subdivisions (8), (9), (13), and (14-a) to read   as follows:                (2-a)  "Classroom instruction" includes instruction   provided in a traditional classroom setting or another in-person   setting or in an online setting.                (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-a)  "In-person driver education provider" means a   business that provides driver education courses in person,   including behind-the-wheel training, observation hours, and driver   license examinations.                (14-b)  "National criminal history record information"    has the meaning assigned by Section 22.081.                (14-c)  "Online driver education provider" means a   business that provides driver education courses to students   remotely through the Internet.                (14-d)  "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 1001.002(c), Education Code, is   amended to read as follows:          (c)  A driver education course is exempt from this chapter,   other than Section 1001.055, if the course is:                (1)  conducted by a vocational driver training provider   that exclusively trains [school operated to train] or prepares   [prepare] a person for a field of endeavor in a business, trade,   technical, or industrial occupation;                (2)  conducted by a school or training program that   offers only instruction of purely avocational or recreational   subjects as determined by the department;                (3)  sponsored by an employer to train its own   employees without charging tuition;                (4)  sponsored by a recognized trade, business, or   professional organization with a closed membership to instruct the   members of the organization; or                (5)  conducted by a school regulated and approved under   another law of this state.          SECTION 4.03.  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 4.04.  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 4.05.  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 4.06.  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 4.07.  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 primary location of the   provider [school] in a solicitation.          SECTION 4.08.  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 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 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 4.09.  Sections 1001.056(a), (b), (c-1), (d), (e),   and (g), Education Code, are amended to read as follows:          (a)  In this section, "operator" means a person approved by a   driving safety [course] provider to conduct an approved driving   safety course.          (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 driving safety [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 4.10.  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 4.11.  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 4.12.  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 4.13.  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 4.14.  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 training 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 4.15.  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 4.16.  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 4.17.  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 4.18.  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 use course   materials provided by a parent-taught driver education provider to   conduct [The commission by rule shall provide for approval of] a   driver education course approved under Section 1001.1017 for   [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.          (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 training 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 training   [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 4.19.  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 4.20.  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 4.21.  Section 1001.201, Education Code, is amended   to read as follows:          Sec. 1001.201.  LICENSE REQUIRED. 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].          SECTION 4.22.  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 4.23.  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 regulations, including fire, building, and sanitation   codes and assumed name registration, if applicable;                [(8)] is financially sound and capable of fulfilling   its commitments for training;                (6) [(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;                (7) [(10)]  does not use erroneous or misleading   advertising, either by actual statement, omission, or intimation,   as determined by the department;                (8) [(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;                (9) [(12)]  submits to the department for approval the   applicable course hour lengths and curriculum content for each   course offered by the provider [school];                (10) [(13)]  does not owe an administrative penalty for   a violation of this chapter;                (11)  meets all requirements applicable to the license   type under Section 1001.2041, 1001.2042, or 1001.2043; and                (12) [(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 4.24.  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:                (1)  has adequate space, equipment, instructional   material, and driver education instructors to provide training of   good quality in the classroom and behind the wheel; and                (2)  complies with all county, municipal, state, and   federal regulations, including fire, building, and sanitation   codes and assumed name registration, if applicable.          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)  an adequate number of 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.          (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 4.25.  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 4.26.  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 4.27.  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 4.28.  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 4.29.  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 4.30.  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 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 4.31.  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 4.32.  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 4.33.  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 4.34.  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 4.35.  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 4.36.  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 4.37.  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 4.38.  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 4.39.  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 4.40.  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 4.41.  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 4.42.  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 4.43.  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 4.44.  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 4.45.  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 4.46.  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 4.47.  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 4.48.  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 4.49.  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 4.50.  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 4.51.  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 4.52.  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 4.53.  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 4.54.  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 4.55.  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 4.56.  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 4.57.  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 4.58.  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 4.59.  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 4.60.  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 4.61.  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 4.62.  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 4.63.  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 4.64.  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 4.65.  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 4.66.  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 4.67.  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 4.68.  The following provisions are repealed:                (1)  Article 45.0511(u), Code of Criminal Procedure;                (2)  Sections 1001.001(4), (7), (10), (11), and (14),   Education Code;                (3)  Section 1001.056(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 4.69.  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 in accordance with   Section 1001.058, Education Code, as amended by this article, 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 4.70.  Not later than January 1, 2022, 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 4.71.  (a) Not later than January 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.          SECTION 4.72.  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 the effective date of this Act. 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 4.73.  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.  EFFECTIVE DATE          SECTION 5.01.  This Act takes effect September 1, 2021.