By: Hancock  S.B. No. 2065
         (In the Senate - Filed March 10, 2017; March 28, 2017, read
  first time and referred to Committee on Business & Commerce;
  April 18, 2017, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 9, Nays 0; April 18, 2017,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2065 By:  Hancock
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the licensing and regulation of certain occupations and
  activities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  VEHICLE PROTECTION PRODUCTS
         SECTION 1.001.  Section 17.45, Business & Commerce Code, is
  amended by adding Subdivisions (14), (15), and (16) to read as
  follows:
               (14)  "Vehicle protection product":
                     (A)  means a product or system, including a
  written warranty:
                           (i)  that is:
                                 (a)  installed on or applied to a
  vehicle; and
                                 (b)  designed to prevent loss of or
  damage to a vehicle from a specific cause; and
                           (ii)  under which, after installation or
  application of the product or system described by Subparagraph (i),
  if loss or damage results from the failure of the product or system
  to perform as represented in the warranty, the warrantor, to the
  extent agreed on as part of the warranty, is required to pay
  expenses to the person in this state who purchases or otherwise
  possesses the product or system for the loss of or damage to the
  vehicle; and
                     (B)  may also include identity recovery, as
  defined by Section 1304.003, Occupations Code, if the product or
  system described by Paragraph (A) is financed under Chapter 348 or
  353, Finance Code.
               (15)  "Warrantor" means a person named under the terms
  of a vehicle protection product warranty as the contractual obligor
  to a person in this state who purchases or otherwise possesses a
  vehicle protection product.
               (16)  "Loss of or damage to the vehicle," for purposes
  of Subdivision (14)(A)(ii), may also include unreimbursed
  incidental expenses that may be incurred by the warrantor,
  including expenses for a replacement vehicle, temporary vehicle
  rental expenses, and registration expenses for replacement
  vehicles.
         SECTION 1.002.  Section 17.46(b), Business & Commerce Code,
  as amended by Chapters 1023 (H.B. 1265) and 1080 (H.B. 2573), Acts
  of the 84th Legislature, Regular Session, 2015, is reenacted and
  amended to read as follows:
         (b)  Except as provided in Subsection (d) of this section,
  the term "false, misleading, or deceptive acts or practices"
  includes, but is not limited to, the following acts:
               (1)  passing off goods or services as those of another;
               (2)  causing confusion or misunderstanding as to the
  source, sponsorship, approval, or certification of goods or
  services;
               (3)  causing confusion or misunderstanding as to
  affiliation, connection, or association with, or certification by,
  another;
               (4)  using deceptive representations or designations
  of geographic origin in connection with goods or services;
               (5)  representing that goods or services have
  sponsorship, approval, characteristics, ingredients, uses,
  benefits, or quantities which they do not have or that a person has
  a sponsorship, approval, status, affiliation, or connection which
  the person does not;
               (6)  representing that goods are original or new if
  they are deteriorated, reconditioned, reclaimed, used, or
  secondhand;
               (7)  representing that goods or services are of a
  particular standard, quality, or grade, or that goods are of a
  particular style or model, if they are of another;
               (8)  disparaging the goods, services, or business of
  another by false or misleading representation of facts;
               (9)  advertising goods or services with intent not to
  sell them as advertised;
               (10)  advertising goods or services with intent not to
  supply a reasonable expectable public demand, unless the
  advertisements disclosed a limitation of quantity;
               (11)  making false or misleading statements of fact
  concerning the reasons for, existence of, or amount of price
  reductions;
               (12)  representing that an agreement confers or
  involves rights, remedies, or obligations which it does not have or
  involve, or which are prohibited by law;
               (13)  knowingly making false or misleading statements
  of fact concerning the need for parts, replacement, or repair
  service;
               (14)  misrepresenting the authority of a salesman,
  representative or agent to negotiate the final terms of a consumer
  transaction;
               (15)  basing a charge for the repair of any item in
  whole or in part on a guaranty or warranty instead of on the value of
  the actual repairs made or work to be performed on the item without
  stating separately the charges for the work and the charge for the
  warranty or guaranty, if any;
               (16)  disconnecting, turning back, or resetting the
  odometer of any motor vehicle so as to reduce the number of miles
  indicated on the odometer gauge;
               (17)  advertising of any sale by fraudulently
  representing that a person is going out of business;
               (18)  advertising, selling, or distributing a card
  which purports to be a prescription drug identification card issued
  under Section 4151.152, Insurance Code, in accordance with rules
  adopted by the commissioner of insurance, which offers a discount
  on the purchase of health care goods or services from a third party
  provider, and which is not evidence of insurance coverage, unless:
                     (A)  the discount is authorized under an agreement
  between the seller of the card and the provider of those goods and
  services or the discount or card is offered to members of the
  seller;
                     (B)  the seller does not represent that the card
  provides insurance coverage of any kind; and
                     (C)  the discount is not false, misleading, or
  deceptive;
               (19)  using or employing a chain referral sales plan in
  connection with the sale or offer to sell of goods, merchandise, or
  anything of value, which uses the sales technique, plan,
  arrangement, or agreement in which the buyer or prospective buyer
  is offered the opportunity to purchase merchandise or goods and in
  connection with the purchase receives the seller's promise or
  representation that the buyer shall have the right to receive
  compensation or consideration in any form for furnishing to the
  seller the names of other prospective buyers if receipt of the
  compensation or consideration is contingent upon the occurrence of
  an event subsequent to the time the buyer purchases the merchandise
  or goods;
               (20)  representing that a guaranty or warranty confers
  or involves rights or remedies which it does not have or involve,
  provided, however, that nothing in this subchapter shall be
  construed to expand the implied warranty of merchantability as
  defined in Sections 2.314 through 2.318 and Sections 2A.212 through
  2A.216 to involve obligations in excess of those which are
  appropriate to the goods;
               (21)  promoting a pyramid promotional scheme, as
  defined by Section 17.461;
               (22)  representing that work or services have been
  performed on, or parts replaced in, goods when the work or services
  were not performed or the parts replaced;
               (23)  filing suit founded upon a written contractual
  obligation of and signed by the defendant to pay money arising out
  of or based on a consumer transaction for goods, services, loans, or
  extensions of credit intended primarily for personal, family,
  household, or agricultural use in any county other than in the
  county in which the defendant resides at the time of the
  commencement of the action or in the county in which the defendant
  in fact signed the contract; provided, however, that a violation of
  this subsection shall not occur where it is shown by the person
  filing such suit that the person neither knew or had reason to know
  that the county in which such suit was filed was neither the county
  in which the defendant resides at the commencement of the suit nor
  the county in which the defendant in fact signed the contract;
               (24)  failing to disclose information concerning goods
  or services which was known at the time of the transaction if such
  failure to disclose such information was intended to induce the
  consumer into a transaction into which the consumer would not have
  entered had the information been disclosed;
               (25)  using the term "corporation," "incorporated," or
  an abbreviation of either of those terms in the name of a business
  entity that is not incorporated under the laws of this state or
  another jurisdiction;
               (26)  selling, offering to sell, or illegally promoting
  an annuity contract under Chapter 22, Acts of the 57th Legislature,
  3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
  Statutes), with the intent that the annuity contract will be the
  subject of a salary reduction agreement, as defined by that Act, if
  the annuity contract is not an eligible qualified investment under
  that Act or is not registered with the Teacher Retirement System of
  Texas as required by Section 8A of that Act;
               (27)  taking advantage of a disaster declared by the
  governor under Chapter 418, Government Code, by:
                     (A)  selling or leasing fuel, food, medicine, or
  another necessity at an exorbitant or excessive price; or
                     (B)  demanding an exorbitant or excessive price in
  connection with the sale or lease of fuel, food, medicine, or
  another necessity;
               (28)  using the translation into a foreign language of
  a title or other word, including "attorney," "lawyer," "licensed,"
  "notary," and "notary public," in any written or electronic
  material, including an advertisement, a business card, a
  letterhead, stationery, a website, or an online video, in reference
  to a person who is not an attorney in order to imply that the person
  is authorized to practice law in the United States;
               (29) [(28)]  delivering or distributing a solicitation
  in connection with a good or service that:
                     (A)  represents that the solicitation is sent on
  behalf of a governmental entity when it is not; or
                     (B)  resembles a governmental notice or form that
  represents or implies that a criminal penalty may be imposed if the
  recipient does not remit payment for the good or service;
               (30) [(29)]  delivering or distributing a solicitation
  in connection with a good or service that resembles a check or other
  negotiable instrument or invoice, unless the portion of the
  solicitation that resembles a check or other negotiable instrument
  or invoice includes the following notice, clearly and conspicuously
  printed in at least 18-point type:
         "SPECIMEN-NON-NEGOTIABLE";
               (31) [(30)]  in the production, sale, distribution, or
  promotion of a synthetic substance that produces and is intended to
  produce an effect when consumed or ingested similar to, or in excess
  of, the effect of a controlled substance or controlled substance
  analogue, as those terms are defined by Section 481.002, Health and
  Safety Code:
                     (A)  making a deceptive representation or
  designation about the synthetic substance; or
                     (B)  causing confusion or misunderstanding as to
  the effects the synthetic substance causes when consumed or
  ingested; [or]
               (32) [(31)]  a licensed public insurance adjuster
  directly or indirectly soliciting employment, as defined by Section
  38.01, Penal Code, for an attorney, or a licensed public insurance
  adjuster entering into a contract with an insured for the primary
  purpose of referring the insured to an attorney without the intent
  to actually perform the services customarily provided by a licensed
  public insurance adjuster, provided that this subdivision may not
  be construed to prohibit a licensed public insurance adjuster from
  recommending a particular attorney to an insured; or
               (33)  a warrantor of a vehicle protection product
  warranty using, in connection with the product, a name that
  includes "casualty," "surety," "insurance," "mutual," or any other
  word descriptive of an insurance business, including property or
  casualty insurance, or a surety business.
         SECTION 1.003.  Subchapter A, Chapter 348, Finance Code, is
  amended by adding Section 348.014 to read as follows:
         Sec. 348.014.  TRANSACTION CONDITIONED ON PURCHASE OF
  VEHICLE PROTECTION PRODUCT PROHIBITED. (a)  In this section,
  "vehicle protection product" has the meaning assigned by Section
  17.45, Business & Commerce Code.
         (b)  A retail seller may not require as a condition of a
  retail installment transaction or the cash sale of a motor vehicle
  that the buyer purchase a vehicle protection product that is not
  installed on the vehicle at the time of the transaction.
         (c)  A violation of this section is a false, misleading, or
  deceptive act or practice within the meaning of Section 17.46,
  Business & Commerce Code, and is actionable in a public or private
  suit brought under Subchapter E, Chapter 17, Business & Commerce
  Code.
         SECTION 1.004.  Subchapter A, Chapter 353, Finance Code, is
  amended by adding Section 353.017 to read as follows:
         Sec. 353.017.  TRANSACTION CONDITIONED ON PURCHASE OF
  VEHICLE PROTECTION PRODUCT PROHIBITED. (a)  In this section,
  "vehicle protection product" has the meaning assigned by Section
  17.45, Business & Commerce Code.
         (b)  A retail seller may not require as a condition of a
  retail installment transaction or the cash sale of a commercial
  vehicle that the buyer purchase a vehicle protection product that
  is not installed on the vehicle at the time of the transaction.
         (c)  A violation of this section is a false, misleading, or
  deceptive act or practice within the meaning of Section 17.46,
  Business & Commerce Code, and is actionable in a public or private
  suit brought under Subchapter E, Chapter 17, Business & Commerce
  Code.
         SECTION 1.005.  Chapter 2306, Occupations Code, is repealed.
         SECTION 1.006.  (a)  On the effective date of this Act:
               (1)  an action, including a disciplinary or
  administrative proceeding, pending under Chapter 51 or 2306,
  Occupations Code, on the effective date of this Act related to an
  alleged violation of Chapter 2306, Occupations Code, as that
  chapter existed immediately before the effective date of this Act,
  is dismissed;
               (2)  the Vehicle Protection Product Warrantor Advisory
  Board is abolished; and
               (3)  a registration issued under former Chapter 2306,
  Occupations Code, expires.
         (b)  As soon as practicable after the effective date of this
  Act, the Texas Commission of Licensing and Regulation shall repeal
  all rules regarding the regulation of vehicle protection product
  warrantors adopted under former Chapter 2306, Occupations Code.
         (c)  An administrative penalty assessed by the Texas
  Commission of Licensing and Regulation or the executive director of
  the Texas Department of Licensing and Regulation related to a
  violation of Chapter 2306, Occupations Code, as that chapter
  existed immediately before the effective date of this Act, may be
  collected as provided by Chapter 51, Occupations Code.
         (d)  The repeal by this Act of Chapter 2306, Occupations
  Code, does not affect the validity or terms of a vehicle protection
  product warranty that was issued or renewed before the effective
  date of this Act.
         SECTION 1.007.  Section 17.46(b), Business & Commerce Code,
  as amended by this Act, applies only to a cause of action that
  accrues on or after the effective date of this Act. A cause of
  action that accrued before the effective date of this Act is
  governed by the law in effect immediately before the effective date
  of this Act, and that law is continued in effect for that purpose.
         SECTION 1.008.  Sections 348.014 and 353.017, Finance Code,
  as added by this Act, apply only to a transaction for the purchase
  of a motor vehicle or commercial vehicle, as applicable, that
  occurs on or after the effective date of this Act. A transaction
  for the purchase of a motor vehicle or commercial vehicle that
  occurs before the effective date of this Act is governed by the law
  in effect on the date the transaction occurred, and the former law
  is continued in effect for that purpose.
  ARTICLE 2.  TEMPORARY COMMON WORKER EMPLOYERS
         SECTION 2.001.  Section 92.001(a), Labor Code, is amended to
  read as follows:
         (a)  The legislature finds that this chapter is necessary to:
               (1)  provide for the health, safety, and welfare of
  common workers throughout this state; and
               (2)  establish uniform standards of conduct and
  practice for temporary common worker [certain] employers in this
  state.
         SECTION 2.002.  Section 92.002, Labor Code, is amended by
  amending Subdivision (6) and adding Subdivision (6-a) to read as
  follows:
               (6)  "Labor hall" means a central location maintained
  by a temporary common worker employer [license holder] where common
  workers assemble and are dispatched to work for a user of common
  workers.
               (6-a) "Municipality" has the meaning assigned by
  Section 1.005, Local Government Code.
         SECTION 2.003.  The heading to Subchapter B, Chapter 92,
  Labor Code, is amended to read as follows:
  SUBCHAPTER B.  AUTHORITY TO OPERATE [LICENSE REQUIREMENTS]
         SECTION 2.004.  Subchapter B, Chapter 92, Labor Code, is
  amended by adding Section 92.0115 to read as follows:
         Sec. 92.0115.  AUTHORITY TO OPERATE. Subject to Section
  92.013 and unless prohibited by a governmental subdivision, a
  person may operate as a temporary common worker employer in this
  state if the person meets the requirements of this chapter.
         SECTION 2.005.  The heading to Section 92.012, Labor Code,
  is amended to read as follows:
         Sec. 92.012.  EXEMPTIONS [FROM LICENSING REQUIREMENT].
         SECTION 2.006.  Section 92.013(b), Labor Code, is amended to
  read as follows:
         (b)  A municipality with a population greater than one
  million may establish municipal [licensing] requirements that
  impose stricter standards of conduct and practice than those
  imposed under Subchapter C.
         SECTION 2.007.  The heading to Subchapter C, Chapter 92,
  Labor Code, is amended to read as follows:
  SUBCHAPTER C.  STANDARDS OF CONDUCT AND PRACTICE [POWERS AND DUTIES
  OF LICENSE HOLDER]
         SECTION 2.008.  Section 92.021, Labor Code, is amended to
  read as follows:
         Sec. 92.021.  POWERS AND DUTIES OF [LICENSE HOLDER AS]
  EMPLOYER.  (a)  Each temporary common worker employer [license
  holder] is the employer of the common workers provided by that
  temporary common worker employer [license holder].
         (b)  A temporary common worker employer [license holder] may
  hire, reassign, control, direct, and discharge the employees of the
  temporary common worker employer [license holder].
         SECTION 2.009.  Section 92.022, Labor Code, is amended to
  read as follows:
         Sec. 92.022.  REQUIRED RECORDS; CONFIDENTIALITY.  (a)  Each
  temporary common worker employer [license holder] shall maintain
  and make available to a governmental subdivision [representative of
  the department] records that show for each common worker provided
  by the temporary common worker employer [license holder] to a user
  of common workers:
               (1)  the name and address of the worker;
               (2)  the hours worked;
               (3)  the places at which the work was performed;
               (4)  the wages paid to the worker; and
               (5)  any deductions made from those wages.
         (b)  The temporary common worker employer [license holder]
  shall maintain the records at least until the second anniversary of
  the date on which the worker was last employed by the temporary
  common worker employer [license holder].
         (c)  Information received by the governmental subdivision
  [commission or department] under this section is privileged and
  confidential and is for the exclusive use of the governmental
  subdivision [commission or department]. The information may not be
  disclosed to any other person except on the entry of a court order
  requiring disclosure or on the written consent of a person under
  investigation who is the subject of the records.
         SECTION 2.010.  Section 92.023(b), Labor Code, is amended to
  read as follows:
         (b)  Each temporary common worker employer [license holder]
  shall [also] post in a conspicuous place in the [licensed] premises
  on which the temporary common worker employer operates a notice of
  any charge permitted under this chapter that the temporary common
  worker employer [license holder] may assess against a common worker
  for equipment, tools, transportation, or other work-related
  services.
         SECTION 2.011.  Section 92.024, Labor Code, is amended to
  read as follows:
         Sec. 92.024.  LABOR HALL REQUIREMENTS. A temporary common
  worker employer [license holder] that operates a labor hall as part
  of a [licensed] premises on which the temporary common worker
  employer operates shall provide adequate facilities for a worker
  waiting for a job assignment. The facilities must include:
               (1)  restroom facilities for both men and women;
               (2)  drinking water;
               (3)  sufficient seating; and
               (4)  access to vending refreshments and food.
         SECTION 2.012.  Section 92.025, Labor Code, is amended to
  read as follows:
         Sec. 92.025.  CERTAIN CHARGES AND DEDUCTIONS PROHIBITED.
  (a)  A temporary common worker employer [license holder] may not
  charge a common worker for:
               (1)  safety equipment, clothing, or accessories
  required by the nature of the work, either by law, custom, or the
  requirements of the user of common workers;
               (2)  uniforms, special clothing, or other items
  required as a condition of employment by the user of common workers;
               (3)  the cashing of a check or voucher; or
               (4)  the receipt by the worker of earned wages.
         (b)  A temporary common worker employer [license holder] may
  not deduct or withhold any amount from the earned wages of a common
  worker except:
               (1)  a deduction required by federal or state law; or
               (2)  a reimbursement for a cash advance made to the
  worker during the same pay period.
         SECTION 2.013.  Chapter 92, Labor Code, is amended by adding
  Subchapter D to read as follows:
  SUBCHAPTER D.  ENFORCEMENT
         Sec. 92.031.  ENFORCEMENT. A governmental subdivision may
  enforce this chapter within the boundaries of the governmental
  subdivision.
         SECTION 2.014.  The following provisions of the Labor Code
  are repealed:
               (1)  Sections 92.002(1), (4), and (4-a);
               (2)  Section 92.003;
               (3)  Section 92.004;
               (4)  Section 92.011;
               (5)  Section 92.013(a);
               (6)  Section 92.014;
               (7)  Section 92.015; and
               (8)  Section 92.023(a).
         SECTION 2.015.  (a)  An administrative proceeding pending
  under Chapter 51, Occupations Code, or Chapter 92, Labor Code, on
  the effective date of this Act related to a violation of Chapter 92,
  Labor Code, as that chapter existed immediately before the
  effective date of this Act, is dismissed.
         (b)  An administrative penalty assessed by the Texas
  Commission of Licensing and Regulation or the executive director of
  the Texas Department of Licensing and Regulation related to a
  violation of Chapter 92, Labor Code, as that chapter existed
  immediately before the effective date of this Act, may be collected
  as provided by Chapter 51, Occupations Code.
         (c)  The changes in law made by this Act do not affect the
  pending prosecution of an offense under Chapter 92, Labor Code, as
  that chapter existed immediately before the effective date of this
  Act. An offense committed before the effective date of this Act is
  governed by the law in effect on the date the offense was committed,
  and the former law is continued in effect for that purpose. For
  purposes of this subsection, an offense was committed before the
  effective date of this Act if any element of the offense was
  committed before that date.
  ARTICLE 3.  FOR-PROFIT LEGAL SERVICE CONTRACT COMPANIES
         SECTION 3.001.  Section 953.001(1), Occupations Code, is
  amended to read as follows:
               (1)  "Administrator" means the person responsible for
  the administration of a legal service contract. [The term includes
  a person responsible for any filing required by this chapter.]
         SECTION 3.002.  Section 953.156, Occupations Code, is
  amended to read as follows:
         Sec. 953.156.  FORM OF LEGAL SERVICE CONTRACT AND REQUIRED
  DISCLOSURES. [(a)     A legal service contract must be filed with the
  executive director before it is marketed, sold, offered for sale,
  administered, or issued in this state. Any subsequent endorsement
  or attachment to the contract must also be filed with the executive
  director before the endorsement or attachment is delivered to legal
  service contract holders.
         [(b)]  A legal service contract marketed, sold, offered for
  sale, administered, or issued in this state must:
               (1)  be written, printed, or typed in clear,
  understandable language that is easy to read;
               (2)  include the name and full address of the company;
               (3)  include the purchase price of the contract and the
  terms under which the contract is sold;
               (4)  include the terms and restrictions governing
  cancellation of the contract by the company or the legal service
  contract holder;
               (5)  identify:
                     (A)  any administrator, if the administrator is
  not the company;
                     (B)  the sales representative; and
                     (C)  the name of the legal service contract
  holder;
               (6)  include the amount of any deductible or copayment;
               (7)  specify the legal services and other benefits to
  be provided under the contract, and any limitation, exception, or
  exclusion;
               (8)  specify the legal services, if any, for which the
  company will provide reimbursement and the amount of that
  reimbursement;
               (9)  specify any restriction governing the
  transferability of the contract or the assignment of benefits;
               (10)  include the duties of the legal service contract
  holder;
               (11)  [include the contact information for the
  department, including the department's toll-free number and
  electronic mail address, as well as a statement that the department
  regulates the company and the company's sales representatives;
               [(12)]  explain the method to be used in resolving the
  legal service contract holder's complaints and grievances;
               (12) [(13)]  explain how legal services may be obtained
  under the legal service contract;
               (13) [(14)]  include a provision stating that no change
  in the contract is valid until the change has been approved by an
  executive officer of the company and unless the approval is
  endorsed or attached to the contract;
               (14) [(15)]  include any eligibility and effective
  date requirements, including a definition of eligible dependents
  and the effective date of their coverage;
               (15) [(16)]  include the conditions under which
  coverage will terminate;
               (16) [(17)]  explain any subrogation arrangements;
               (17) [(18)]  contain a payment provision that provides
  for a grace period of at least 31 days; and
               (18) [(19)]  include conditions under which contract
  rates may be modified[; and
               [(20)     include any other items required by the
  executive director as determined by rule].
         SECTION 3.003.  Section 953.162, Occupations Code, is
  amended to read as follows:
         Sec. 953.162.  APPOINTMENT AND RESPONSIBILITIES OF
  ADMINISTRATOR. [(a)]  A company may appoint an administrator or
  designate a person to be responsible for:
               (1)  all or any part of the administration or sale of
  legal service contracts; and
               (2)  compliance with this chapter.
         [(b)     The executive director may adopt rules regarding the
  registration of an administrator with the department.]
         SECTION 3.004.  Chapter 953, Occupations Code, is amended by
  adding Subchapter F to read as follows:
  SUBCHAPTER F. ENFORCEMENT
         Sec. 953.251.  DECEPTIVE TRADE PRACTICE. A violation of
  this chapter is a deceptive trade practice actionable under
  Subchapter E, Chapter 17, Business & Commerce Code.
         SECTION 3.005.  The following provisions of the Occupations
  Code are repealed:
               (1)  Sections 953.001(4), (5), and (6);
               (2)  Sections 953.004, 953.005, and 953.155; and
               (3)  Subchapters B, C, and E, Chapter 953.
         SECTION 3.006.  (a)  On the effective date of this article,
  a registration issued under former Subchapter B, Chapter 953,
  Occupations Code, expires.
         (b)  On the effective date of this article, a pending
  proceeding under Chapter 953, Occupations Code, including a
  complaint investigation, disciplinary action, or administrative
  penalty proceeding, relating to a registration issued under former
  Subchapter B, Chapter 953, Occupations Code, or relating to another
  former provision of Chapter 953, Occupations Code, that is repealed
  by this article, is dismissed.
         SECTION 3.007.  This article takes effect September 1, 2019.
  ARTICLE 4.  BARBERING AND COSMETOLOGY
         SECTION 4.001.  Section 1601.002, Occupations Code, is
  amended to read as follows:
         Sec. 1601.002.  DEFINITION OF BARBERING. In this chapter,
  "barbering," "practicing barbering," or the "practice of
  barbering" means:
               (1)  performing or offering or attempting to perform
  for compensation or the promise of compensation any of the
  following services:
                     (A)  treating a person's mustache or beard by
  arranging, beautifying, coloring, processing, shaving, styling, or
  trimming;
                     (B)  treating a person's hair by:
                           (i)  arranging, beautifying, bleaching,
  cleansing, coloring, curling, dressing, dyeing, processing,
  [shampooing,] shaping, singeing, straightening, styling, tinting,
  or waving;
                           (ii)  providing a necessary service that is
  preparatory or ancillary to a service under Subparagraph (i),
  including bobbing, clipping, cutting, or trimming; or
                           (iii)  cutting the person's hair as a
  separate and independent service for which a charge is directly or
  indirectly made separately from a charge for any other service;
                     (C)  cleansing, stimulating, or massaging a
  person's scalp, face, neck, arms, or shoulders:
                           (i)  by hand or by using a device, apparatus,
  or appliance; and
                           (ii)  with or without the use of any cosmetic
  preparation, antiseptic, tonic, lotion, or cream;
                     (D)  beautifying a person's face, neck, arms, or
  shoulders using a cosmetic preparation, antiseptic, tonic, lotion,
  powder, oil, clay, cream, or appliance;
                     (E)  treating a person's nails by:
                           (i)  cutting, trimming, polishing, tinting,
  coloring, cleansing, manicuring, or pedicuring; or
                           (ii)  attaching false nails;
                     (F)  massaging, cleansing, treating, or
  beautifying a person's hands;
                     (G)  administering facial treatments;
                     (H)  weaving a person's hair by using any method
  to attach commercial hair to a person's hair or scalp; or
                     (I)  [shampooing or conditioning a person's hair;
  or
                     [(J)]  servicing in any manner listed in Paragraph
  (B) a person's wig, toupee, or artificial hairpiece on a person's
  head or on a block after the initial retail sale;
               (2)  advertising or representing to the public in any
  manner that a person is a barber or is authorized to practice
  barbering; or
               (3)  advertising or representing to the public in any
  manner that a location or place of business is a barbershop,
  specialty shop, or barber school.
         SECTION 4.002.  Subchapter A, Chapter 1601, Occupations
  Code, is amended by adding Section 1601.0025 to read as follows:
         Sec. 1601.0025.  SERVICES NOT CONSTITUTING BARBERING.
  Notwithstanding Section 1601.002, "barbering," "practicing
  barbering," and "practice of barbering" do not include threading,
  which involves removing unwanted hair from a person by using a piece
  of thread that is looped around the hair and pulled to remove the
  hair and includes the incidental trimming of eyebrow hair.
         SECTION 4.003.  Section 1601.256(a), Occupations Code, is
  amended to read as follows:
         (a)  A person holding a barber technician license may:
               (1)  perform only barbering as defined by Sections
  1601.002(1)(C), (D), (F), and (G)[, and (I)]; and
               (2)  practice only at a location that has been issued a
  barbershop permit.
         SECTION 4.004.  Section 1602.002(a), Occupations Code, is
  amended to read as follows:
         (a)  In this chapter, "cosmetology" means the practice of
  performing or offering to perform for compensation any of the
  following services:
               (1)  treating a person's hair by:
                     (A)  providing any method of treatment as a
  primary service, including arranging, beautifying, bleaching,
  cleansing, coloring, cutting, dressing, dyeing, processing,
  [shampooing,] shaping, singeing, straightening, styling, tinting,
  or waving;
                     (B)  providing a necessary service that is
  preparatory or ancillary to a service under Paragraph (A),
  including bobbing, clipping, cutting, or trimming a person's hair
  or shaving a person's neck with a safety razor; or
                     (C)  cutting the person's hair as a separate and
  independent service for which a charge is directly or indirectly
  made separately from charges for any other service;
               (2)  [shampooing and conditioning a person's hair;
               [(3)]  servicing a person's wig or artificial hairpiece
  on a person's head or on a block after the initial retail sale and
  servicing in any manner listed in Subdivision (1);
               (3) [(4)]  treating a person's mustache or beard by
  arranging, beautifying, coloring, processing, styling, trimming,
  or shaving with a safety razor;
               (4) [(5)]  cleansing, stimulating, or massaging a
  person's scalp, face, neck, or arms:
                     (A)  by hand or by using a device, apparatus, or
  appliance; and
                     (B)  with or without the use of any cosmetic
  preparation, antiseptic, tonic, lotion, or cream;
               (5) [(6)]  beautifying a person's face, neck, or arms
  using a cosmetic preparation, antiseptic, tonic, lotion, powder,
  oil, clay, cream, or appliance;
               (6) [(7)]  administering facial treatments;
               (7) [(8)]  removing superfluous hair from a person's
  body using depilatories, preparations or chemicals, tweezers, or
  other devices or appliances of any kind or description [tweezing
  techniques];
               (8) [(9)]  treating a person's nails by:
                     (A)  cutting, trimming, polishing, tinting,
  coloring, cleansing, or manicuring; or
                     (B)  attaching false nails;
               (9) [(10)]  massaging, cleansing, treating, or
  beautifying a person's hands or feet;
               (10) [(11)]  applying semipermanent, thread-like
  extensions composed of single fibers to a person's eyelashes; or
               (11) [(12)]  weaving a person's hair.
         SECTION 4.005.  Subchapter A, Chapter 1602, Occupations
  Code, is amended by adding Section 1602.0025 to read as follows:
         Sec. 1602.0025.  SERVICES NOT CONSTITUTING COSMETOLOGY.
  Notwithstanding Section 1602.002(a), "cosmetology" does not
  include threading, which involves removing unwanted hair from a
  person by using a piece of thread that is looped around the hair and
  pulled to remove the hair and includes the incidental trimming of
  eyebrow hair.
         SECTION 4.006.  Section 1602.255(c), Occupations Code, is
  amended to read as follows:
         (c)  The commission shall adopt rules for the licensing of
  specialty instructors to teach specialty courses in the practice of
  cosmetology defined in Sections 1602.002(a)(5), (7), (8), and (10)
  [1602.002(a)(6), (8), (9), and (11)].
         SECTION 4.007.  Section 1602.256(a), Occupations Code, is
  amended to read as follows:
         (a)  A person holding a manicurist specialty license may
  perform only the practice of cosmetology defined in Section
  1602.002(a)(8) or (9) [1602.002(a)(9) or (10)].
         SECTION 4.008.  Section 1602.257(a), Occupations Code, is
  amended to read as follows:
         (a)  A person holding an esthetician specialty license may
  perform only the practice of cosmetology defined in Sections
  1602.002(a)(4), (5), (6), (7), and (10) [1602.002(a)(5), (6), (7),
  (8), and (11)].
         SECTION 4.009.  Section 1602.2571(a), Occupations Code, is
  amended to read as follows:
         (a)  A person holding a specialty license in eyelash
  extension application may perform only the practice of cosmetology
  defined in Section 1602.002(a)(10) [1602.002(a)(11)].
         SECTION 4.010.  Section 1602.259(a), Occupations Code, is
  amended to read as follows:
         (a)  A person holding a hair weaving specialty certificate
  may perform only the practice of cosmetology defined in Section
  1602.002(a)(11) [Sections 1602.002(a)(2) and (12)].
         SECTION 4.011.  Section 1602.260(a), Occupations Code, is
  amended to read as follows:
         (a)  A person holding a wig specialty certificate may perform
  only the practice of cosmetology defined in Section 1602.002(a)(2)
  [1602.002(a)(3)].
         SECTION 4.012.  Section 1602.261(a), Occupations Code, is
  amended to read as follows:
         (a)  A person holding a manicurist/esthetician specialty
  license may perform only the practice of cosmetology defined in
  Sections 1602.002(a)(4) through (9) [1602.002(a)(5) through (10)].
         SECTION 4.013.  Section 1602.305(a), Occupations Code, is
  amended to read as follows:
         (a)  A person holding a specialty shop license may maintain
  an establishment in which only the practice of cosmetology as
  defined in Section 1602.002(a)(2), (5), (7), (8), or (10)
  [1602.002(a)(3), (6), (8), (9), or (11)] is performed.
         SECTION 4.014.  Section 1602.354(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission will by rule recognize, prepare, or
  administer continuing education programs for the practice of
  cosmetology.  Participation in the programs is mandatory for all
  license renewals [other than renewal of a shampoo specialty
  certificate].
         SECTION 4.015.  Section 1602.403(c), Occupations Code, is
  amended to read as follows:
         (c)  A person holding a beauty shop license or specialty shop
  license may not employ[:
               [(1)]  a person as an operator or specialist or lease to
  a person who acts as an operator or specialist unless the person
  holds a license or certificate under this chapter or under Chapter
  1601[; or
               [(2)     a person to shampoo or condition a person's hair
  unless the person holds a shampoo apprentice permit or student
  permit].
         SECTION 4.016.  Section 1603.352(a), Occupations Code, is
  amended to read as follows:
         (a)  A person who holds a license, certificate, or permit
  issued under this chapter, Chapter 1601, or Chapter 1602 and who
  performs a barbering service described by Section 1601.002(1)(E) or
  (F) or a cosmetology service described by Section 1602.002(a)(8) or
  (9) [1602.002(a)(9) or (10)] shall, before performing the service,
  clean, disinfect, and sterilize with an autoclave or dry heat
  sterilizer or sanitize with an ultraviolet sanitizer, in accordance
  with the sterilizer or sanitizer manufacturer's instructions, each
  metal instrument, including metal nail clippers, cuticle pushers,
  cuticle nippers, and other metal instruments, used to perform the
  service.
         SECTION 4.017.  The following provisions of the Occupations
  Code are repealed:
               (1)  Section 1601.260(c);
               (2)  Section 1601.261;
               (3)  Section 1601.301(c);
               (4)  Section 1602.266(c);
               (5)  Section 1602.267;
               (6)  Section 1602.301(c); and
               (7)  Section 1602.456(b-1).
         SECTION 4.018.  On the effective date of this Act:
               (1)  a shampoo apprentice permit issued under former
  Section 1601.261 or 1602.267, Occupations Code, expires; and
               (2)  a shampoo specialty certificate issued under
  Chapter 1602 expires.
         SECTION 4.019.  (a)  The changes in law made by this Act to
  Chapters 1601, 1602, and 1603, Occupations Code, do not affect the
  validity of a proceeding pending before a court or other
  governmental entity on the effective date of this Act.
         (b)  An offense or other violation of law committed under
  Chapter 1601, 1602, or 1603, Occupations Code, before the effective
  date of this Act is governed by the law in effect when the offense or
  violation was committed, and the former law is continued in effect
  for that purpose.  For purposes of this subsection, an offense or
  violation was committed before the effective date of this Act if any
  element of the offense or violation occurred before that date.
  ARTICLE 5.  MOTOR VEHICLE TOWING, BOOTING, AND STORAGE
         SECTION 5.001.  Section 2303.058, Occupations Code, is
  amended to read as follows:
         Sec. 2303.058.  ADVISORY BOARD. The Towing and[,] Storage[,
  and Booting] Advisory Board under Chapter 2308 shall advise the
  commission in adopting vehicle storage rules under this chapter.
         SECTION 5.002.  Section 2308.002, Occupations Code, is
  amended by amending Subdivisions (1) and (8-a) and adding
  Subdivisions (5-b) and (8-b) to read as follows:
               (1)  "Advisory board" means the Towing and[,] Storage[,
  and Booting] Advisory Board.
               (5-b)  "Local authority" means a state or local
  governmental entity authorized to regulate traffic or parking and
  includes:
                     (A)  an institution of higher education; and
                     (B)  a political subdivision, including a county,
  municipality, special district, junior college district, housing
  authority, or other political subdivision of this state.
               (8-a)  "Peace officer" means a person who is a peace
  officer under Article 2.12, Code of Criminal Procedure.
               (8-b)  "Private property tow" means any tow of a
  vehicle authorized by a parking facility owner without the consent
  of the owner or operator of the vehicle.
         SECTION 5.003.  Effective September 1, 2018, Section
  2308.004, Occupations Code, is amended to read as follows:
         Sec. 2308.004.  EXEMPTION. Sections 2308.151(b),
  2308.2085, 2308.257, and 2308.258 do [(a)  This chapter does] not
  apply to:
               (1)  a person who, while exercising a statutory or
  contractual lien right with regard to a vehicle:
                     (A) [(1)]  installs or removes a boot; or
                     (B) [(2)]  controls, installs, or directs the
  installation and removal of one or more boots; or[.]
               (2)  [(b)  This chapter does not apply to] a commercial
  office building owner or manager who installs or removes a boot in
  the building's parking facility.
         SECTION 5.004.  Section 2308.051(a), Occupations Code, as
  amended by Chapters 457 (H.B. 2548) and 845 (S.B. 2153), Acts of the
  81st Legislature, Regular Session, 2009, is reenacted and amended
  to read as follows:
         (a)  The advisory board consists of the following members
  appointed by the presiding officer of the commission with the
  approval of the commission:
               (1)  one representative of a towing company operating
  in a county with a population of less than one million;
               (2)  one representative of a towing company operating
  in a county with a population of one million or more;
               (3)  one representative [owner] of a vehicle storage
  facility located in a county with a population of less than one
  million;
               (4)  one representative [owner] of a vehicle storage
  facility located in a county with a population of one million or
  more;
               (5)  one parking facility representative [owner];
               (6)  one peace officer [law enforcement officer] from a
  county with a population of less than one million;
               (7)  one peace officer [law enforcement officer] from a
  county with a population of one million or more;
               (8)  one representative of a member insurer, as defined
  by Section 462.004, Insurance Code, of the Texas Property and
  Casualty Insurance Guaranty Association who writes [property and
  casualty insurers who write] automobile insurance in this state;
  and
               [(9)  one representative of a booting company]
               (9)  one person who operates both a towing company and a
  vehicle storage facility [public member].
         SECTION 5.005.  Effective September 1, 2018, Section
  2308.151, Occupations Code, is amended to read as follows:
         Sec. 2308.151.  LICENSE OR LOCAL AUTHORIZATION REQUIRED.
  (a)  Unless the person holds an appropriate license under this
  subchapter, a person may not:
               (1)  perform towing operations; or
               (2)  operate a towing company.[;]
         (b)  Unless a person is authorized by a local authority under
  Section 2308.2085, a person may not:
               (1) [(3)]  perform booting operations; or
               (2) [(4)]  operate a booting company.
         SECTION 5.006.  Section 2308.2085, Occupations Code, is
  amended to read as follows:
         Sec. 2308.2085.  LOCAL AUTHORITY REGULATION OF [MUNICIPAL
  ORDINANCE REGULATING] BOOTING ACTIVITIES [COMPANIES AND
  OPERATORS].  (a)  A local authority [municipality] may regulate, in
  areas in which the entity regulates parking or traffic, [adopt an
  ordinance that is identical to the] booting activities, including:
               (1)  operation of booting companies and operators that
  operate on a parking facility;
               (2)  any permit and sign requirements in connection
  with the booting of a vehicle; and
               (3)  [provisions in this chapter or that imposes
  additional requirements that exceed the minimum standards of the
  booting provisions in this chapter but may not adopt an ordinance
  that conflicts with the booting provisions in this chapter.
         [(b)  A municipality may regulate the] fees that may be
  charged in connection with the booting of a vehicle[, including
  associated parking fees].
         (b)  Regulations adopted under this section must:
               (1)  incorporate the requirements of Sections 2308.257
  and 2308.258;
               (2)  include procedures for vehicle owners and
  operators to file a complaint with the local authority regarding a
  booting company or operator;
               (3)  provide for the imposition of a penalty on a
  booting company or operator for a violation of Section 2308.258;
  and
               (4)  provide for the revocation of any permit, license,
  or other authority of a booting company or operator to boot vehicles
  if the company or operator violates Section 2308.258 more than
  twice in a five-year period [(c)     A municipality may require
  booting companies to obtain a permit to operate in the
  municipality].
         SECTION 5.007.  Section 2308.255, Occupations Code, is
  amended to read as follows:
         Sec. 2308.255.  TOWING COMPANY'S [OR BOOT OPERATOR'S]
  AUTHORITY TO TOW [REMOVE] AND STORE [OR BOOT] UNAUTHORIZED VEHICLE.
  (a)  A towing company [that is insured as provided by Subsection
  (c)] may, without the consent of an owner or operator of an
  unauthorized vehicle, tow the vehicle to [remove] and store the
  vehicle at a vehicle storage facility at the expense of the owner or
  operator of the vehicle if:
               (1)  the towing company has received written
  verification from the parking facility owner that:
                     (A)  [the parking facility owner has installed]
  the signs required by Section 2308.252(a)(1) are posted; or
                     (B)  the owner or operator received notice under
  Section 2308.252(a)(2) or the parking facility owner gave notice
  complying with Section 2308.252(a)(3); or
               (2)  on request the parking facility owner provides to
  the owner or operator of the vehicle information on the name of the
  towing company and vehicle storage facility that will be used to tow
  [remove] and store the vehicle and the vehicle is:
                     (A)  left in violation of Section 2308.251;
                     (B)  in or obstructing a portion of a paved
  driveway; or
                     (C)  on a public roadway used for entering or
  exiting the facility and the tow [removal] is approved by a peace
  officer.
         (b)  A towing company may not tow [remove] an unauthorized
  vehicle except under:
               (1)  this chapter;
               (2)  a municipal ordinance that complies with Section
  2308.208; or
               (3)  the direction of:
                     (A)  a peace officer; or
                     (B)  the owner or operator of the vehicle.
         (c)  Only a towing company that is insured against liability
  for property damage incurred in towing a vehicle may tow [remove]
  and store an unauthorized vehicle under this section.
         (d)  A towing company may tow [remove] and store a vehicle
  under Subsection (a) [and a boot operator may boot a vehicle under
  Section 2308.257] only if the parking facility owner:
               (1)  requests that the towing company tow [remove] and
  store [or that the boot operator boot] the specific vehicle; or
               (2)  has a standing written agreement with the towing
  company [or boot operator] to enforce parking restrictions in the
  parking facility.
         (e)  When a tow truck is used for a nonconsent tow authorized
  by a peace officer under Section 545.3051, Transportation Code, the
  operator of the tow truck and the towing company are agents of the
  law enforcement agency and are subject to Section 545.3051(e),
  Transportation Code.
         SECTION 5.008.  Section 2308.257, Occupations Code, is
  amended by amending Subsection (b) and adding Subsection (b-1) to
  read as follows:
         (b)  A boot operator that installs a boot on a vehicle must
  affix a conspicuous notice to the vehicle's front windshield or
  driver's side window stating:
               (1)  that the vehicle has been booted and damage may
  occur if the vehicle is moved;
               (2)  the date and time the boot was installed;
               (3)  the name, address, and telephone number of the
  booting company;
               (4)  a telephone number that is answered 24 hours a day
  to enable the owner or operator of the vehicle to arrange for
  removal of the boot;
               (5)  the amount of the fee for removal of the boot and
  any associated parking fees; [and]
               (6)  notice of the right of a vehicle owner or vehicle
  operator to a hearing under Subchapter J; and
               (7)  in the manner prescribed by the local authority,
  notice of the procedure to file a complaint with the local authority
  for violation of this chapter by a boot operator.
         (b-1)  No more than one boot may be installed on a vehicle at
  any time.
         SECTION 5.009.  Subchapter F, Chapter 2308, Occupations
  Code, is amended by adding Section 2308.258 to read as follows:
         Sec. 2308.258.  BOOT REMOVAL. (a)  A booting company
  responsible for the installation of a boot on a vehicle shall remove
  the boot not later than one hour after the time the owner or
  operator of the vehicle contacts the company to request removal of
  the boot.
         (b)  A booting company shall waive the amount of the fee for
  removal of a boot, excluding any associated parking fees, if the
  company fails to have the boot removed within the time prescribed by
  Subsection (a).
         SECTION 5.010.  The heading to Subchapter I, Chapter 2308,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER I. REGULATION OF TOWING COMPANIES[, BOOTING COMPANIES,]
  AND PARKING FACILITY OWNERS
         SECTION 5.011.  (a)  The following provisions of the
  Occupations Code are repealed:
               (1)  Section 2308.002(9); and
               (2)  Section 2308.103(d).
         (b)  Effective September 1, 2018, Sections 2308.1555 and
  2308.1556, Occupations Code, are repealed.
         SECTION 5.012.  (a)  On September 1, 2018, a license issued
  under former Section 2308.1555 or 2308.1556, Occupations Code,
  expires.
         (b)  The changes in law made by this article to Section
  2308.051(a), Occupations Code, regarding the qualifications for a
  member of the Towing and Storage Advisory Board do not affect the
  entitlement of a member serving on the board immediately before the
  effective date of this article to continue to serve and function as
  a member of the board for the remainder of the member's term. When
  board vacancies occur on or after the effective date of this
  article, the presiding officer of the Texas Commission of Licensing
  and Regulation shall appoint new members to the board in a manner
  that reflects the changes in law made by this article.
         (c)  The changes in law made by this article to Section
  2308.255, Occupations Code, do not apply to the booting of a vehicle
  pursuant to a standing written agreement between a booting company
  and a parking facility owner entered into before the effective date
  of this article. The booting of a vehicle pursuant to a standing
  written agreement entered into before the effective date of this
  article is governed by the law as it existed immediately before the
  effective date of this article, and that law is continued in effect
  for that purpose.
         SECTION 5.013.  Except as otherwise provided by this
  article, this article takes effect immediately if this Act receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  article takes effect September 1, 2017.
  ARTICLE 6. CONFLICT OF LAW; EFFECTIVE DATE
         SECTION 6.001.  To the extent of any conflict, this Act
  prevails over another Act of the 85th Legislature, Regular Session,
  2017, relating to nonsubstantive additions to and corrections in
  enacted codes.
         SECTION 6.002.  This Act takes effect only if a specific
  appropriation for the implementation of the Act is provided in a
  general appropriations act of the 85th Legislature.
         SECTION 6.003.  Except as otherwise provided by this Act,
  this Act takes effect September 1, 2017.
 
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