TITLE 16. ECONOMIC REGULATION

PART 2. PUBLIC UTILITY COMMISSION OF TEXAS

CHAPTER 24. SUBSTANTIVE RULES APPLICABLE TO WATER AND SEWER SERVICE PROVIDERS

SUBCHAPTER B. RATES, RATE-MAKING, AND RATES/TARIFF CHANGES

16 TAC §24.21

The Public Utility Commission of Texas (commission) adopts an amendment to §24.21, relating to form and filing of tariffs, with changes to the proposed text as published in the September 15, 2017, issue of the Texas Register (42 TexReg 4739). The amendments implement House Bill 1083 (HB 1083), which amended Texas Water Code §13.182 and §13.189 (West 2008 & Supp. 2017) (TWC) to allow a utility to establish reduced water utility rates funded by donations for elderly customers. The amendments also revise the minor tariff change portion of the rule to correct an example in the pass-through provision formula and clarify what constitutes an acceptable amount of line loss in the pass-through portion of the rule. The amendment is adopted under Project Number 47303.

The commission received comments on the proposed amendments from the City of Houston (Houston), the Office of Public Utility Counsel (OPUC), and joint comments from Aqua Texas, Inc.; Aqua Utilities, Inc.; Aqua Development, Inc. d/b/a Aqua Texas; SJWTX, Inc. d/b/a Canyon Lake Water Service Company; and SouthWest Water Company (collectively, the Water Companies). The commission also received reply comments from the Water Companies and Houston.

§24.21(b)(2)(B)

The Water Companies opined that the proposed rule amendments add certain requirements not included in HB 1083 that may disincentivize utilities from adopting the new program. Specifically, the Water Companies argued that the proposed rule: (1) adds an income-driven limitation even though HB 1083 only contemplates age-based criteria, which could increase administration costs; (2) seems to limit the "cost of providing the reduced rates" that donations may cover to "lost revenues due to the difference in the utility's tariffed retail water rates and the reduced rates," which would prohibit use of donations to cover program administrative costs; and (3) does not appear to contemplate how this type of program would work for sewer or flat rate utilities. The Water Companies argued that the rule should specifically allow donations to be used to cover administrative costs of the new program in order to encourage utilities to adopt this type of assistance program. The Water Companies further argued that assistance programs should be encouraged for all types of service providers, and that the commission should consider how best to incentivize utilities to provide an assistance program of the type authorized by HB 1083 while providing maximum flexibility. The Water Companies argued that the proposed rule does not appear to accomplish those goals.

As further discussed and summarized below, Houston supported and OPUC did not oppose the income limitation as a mechanism to ensure that those persons most in need of assistance receive the discount.

Commission response

The commission agrees with the Water Companies and makes a change to the rule language to reflect the Water Companies' recommendation relating to the use of donations to cover program costs. As discussed in more detail below, the commission finds that the "cost of providing the reduced rates" includes program administrative costs. However, contrary to the argument of the Water Companies, the commission declines to expand the rule to cover sewer rates; the preamble to HB 1083, section three of HB 1083, and the legislative history of HB 1083 all clearly specify that the assistance program established by HB 1083 applies only to water rates, not to sewer rates. The commission responds to the Water Companies' concern regarding adding an income-driven limitation below.

§24.21(b)(2)(B)(i)

Houston commented that the rule does not indicate whether donations are to be collected in advance or prior to calculating and implementing the rates, nor does the rule indicate the proposed timeframe for this initial period. If, on the other hand, donations are not to be collected until after implementation of the rate, Houston was unsure how a utility would determine anticipated donations to be collected in order to create a reasonable rate. Houston indicated that most of the issues it identified could be addressed as part of a proceeding related to the filing of a utility's plan for implementing an assistance program; however, Houston recommended that the commission clarify when the rate would be implemented upon filing of a plan.

The Water Companies replied that leaving the types of details discussed by Houston to consideration on a case-by-case basis for each specific plan would permit more flexibility and therefore be preferable to addressing all the details by rule. The Water Companies did request guidance as to how the commission anticipates the implementation of proposed plans and the approval process working in practice.

Commission response

The commission anticipates that a utility will propose its own plan with respect to when donations will be collected in relation to the implementation date of the rate and that this plan will address any other necessary implementation details.

§24.21(b)(2)(B)(i)(I)

OPUC recommended changing the new §24.21(b)(2)(B)(i)(I) to reflect that the collection of donations is permissive, not mandatory. The Water Companies concurred with OPUC's recommendation.

Commission response

The commission agrees with OPUC that donations are permissive. The commission acknowledges that donations may be received from the utility, customers, or outside persons. There is no need to adopt any changes to the language contained in the proposed rule.

§24.21(b)(2)(B)(i)(II)

Houston stated that the rule is unclear as to whether interest should be applied to the donations collected and held by the utility.

Commission response

The commission determines that any interest earned on donated funds will be considered a donation to the fund. The commission modifies §24.21(b)(2)(B)(i)(II) accordingly.

§24.21(b)(2)(B)(i)(III)

OPUC recommended changing the new §24.21(b)(2)(B)(i)(III) to replace the word "clause" with "program" to clarify that the subsection is referring to the reduced water rate program and not a particular clause. The Water Companies replied that the commission's proposed "clause" language presumably referred to the proposed minor tariff change language an applicant may propose in a plan to implement a reduced rate program. The Water Companies stated that the proposed effective date in a plan under the rule would likely apply to both the tariff language, including the proposed reduced rate, and the contemplated program. The Water Companies also stated that there could potentially be two different dates to allow more time for program implementation. As a result, the Water Companies recommended that the issue be addressed by adding language covering both items instead of using OPUC's proposed language replacement.

OPUC also suggested replacing the word "sample" with "example" to clarify that there may not be any donations at the time of the application. In addition, OPUC recommended inserting additional language to clarify that an accounting of lost revenues is only required if the utility is receiving donations. The Water Companies agreed with these proposed revisions, but argued that the clarification regarding the need for an accounting should be incorporated into the Water Companies' proposed modifications to the proposed rule language.

Houston opposed the Water Companies' proposed modifications to the rule language, specifically the removal of language requiring that "…utilities provide a calculation of all lost revenues and journal entries that transfer the funds from the account in this subparagraph of this clause to the utility's account." Houston argued that requiring the calculation of lost revenues is an important part of determining whether a utility has properly complied with §24.21, and stated that the Water Companies offered no explanation for the change.

Commission response

The commission agrees with OPUC's first two recommendations and changes the word "clause" to "program" and the word "sample" to "example." The commission disagrees with the assertion of OPUC and the Water Companies that an accounting for lost revenues is only necessary when funding is from donations received from other sources. The commission finds that an accounting for lost revenues is appropriate regardless of the source of the donations, and therefore, does not revise §24.21(b)(2)(B)(i)(III) based on those comments.

§24.21(b)(2)(B)(i)(IV)

OPUC recommended replacing the word "requesting" with "receiving" to maintain consistency between proposed §24.21(b)(2)(B)(i)(IV) and the statutory language. The Water Companies did not oppose OPUC's proposed revision.

Commission response

The commission agrees with OPUC's recommendation and changes the language in the rule accordingly.

§24.21(b)(2)(B)(i)(V)

Houston agreed that the rule should establish eligibility requirements for the elderly rate; however, Houston argued that the eligibility criteria should be consistent with other programs, citing the System Benefit Fund rules in 16 Texas Administrative Code §25.451 et seq. as an example. Houston recommended that the eligibility criteria for the elderly rate should consist of (1) a limitation of household income of not more than 125% of the federal poverty guidelines, and (2) eligibility for the assistance programs identified in proposed §24.21(b)(2)(B)(i)(V).

Likewise, OPUC recommended that proposed §24.21(b)(2)(B)(i)(V) be modified to use a limitation on household income of not more than 125% of the federal poverty guidelines. OPUC argued that this change would be consistent with other customer assistance programs, such as the commission's rate reduction program as proposed for amendment in Docket No. 47343. OPUC also proposed that, in the event the commission retains the approach originally proposed, that proposed §24.21(b)(2)(B)(i)(V)(-e-) be modified to specify any comprehensive energy assistance program instead of just Travis County's program.

The Water Companies replied that they were not opposed to Houston's and OPUC's recommendations regarding the use of income-based eligibility criteria that are consistent with criteria used in other programs outlined in the commission rules for electric utilities. However, the Water Companies recommended that the requirement be optional under this particular rule, while acknowledging that including low-income eligibility criteria language in the rule as a guide would be helpful. The Water Companies urged the commission to specifically permit low-income assistance programs by rule and extend the language from proposed §24.21(b)(2)(B)(iv) to other low-income assistance programs, rates, and tariff provisions. In its reply comments, Houston reiterated its position regarding eligibility criteria for the assistance program and stated its opposition to the Water Companies' proposed changes related to the eligibility requirements.

Commission response

The commission agrees with the Water Companies that the rule should not mandate an income-based eligibility requirement and removes the requirement from the rule. The commission declines to extend proposed §24.21(b)(2)(B)(iv) to other programs, as proposed §24.21(b)(2)(B)(iv) is designed to implement section two of HB 1083.

Community Outreach

Houston suggested plans submitted by utilities should include outreach programs to ensure that the people in need of the discount are aware of its existence and have the resources needed to apply for it. The Water Companies were not opposed to the idea of requesting applicants to address community outreach within their plans. The Water Companies stated that community outreach will likely be needed regardless of whether it is addressed in the plan, and argued that costs for community outreach and education efforts should be considered "costs of providing the reduced rates" eligible to be recovered from donated program funds along with other program related administrative costs.

Commission response

Due to the potential cost of the community outreach programs, the commission declines to adopt Houston's suggestion to require community outreach programs regarding the discount program. The commission agrees with Houston that cost for community outreach and education efforts should be considered administrative costs. The commission leaves the decision to the utility to determine outreach activities.

§24.21(b)(2)(B)(ii)

Houston recommended that the costs of providing the reduced rates should not include administrative costs and other costs that might fall under the proposed rule language. Houston proposed that this concern be addressed by removing the term "lost revenue" from the rule language. Houston argued that, to the extent the commission intends to allow utilities to recover administrative and other costs, the rule should expressly address limitations on the type and amount of administrative and other costs to be recovered and that parties should have an opportunity to comment on any such limitations.

The Water Companies opposed Houston's suggested revision related to the "cost of providing the reduced rates." The Water Companies argued that the rule should specifically permit administrative costs to be recovered by donated program funds as part of the "cost of providing the reduced rates." The Water Companies did not agree that the rule should expressly address limitations on the recovery of administrative costs, arguing that placing arbitrary limitations on these costs when they would likely vary on a case-by-case basis didn't appear to incentivize the adoption of rate assistance plans. Instead, the Water Companies recommended that the proposed plan required by the rule should address the anticipated types and amounts of these costs.

In its reply comments, Houston reiterated its position that the rule should place express limitations on the type and amount of administrative costs eligible to be recovered as part of the assistance program. Houston further reiterated its position that parties should have the opportunity to comment on these limitations. Houston argued that under the Water Companies' approach, unlimited administrative costs could be eligible for recovery, which would be contrary to the spirit of the assistance program. Houston commented with respect to electric energy efficiency programs, which apply to many more customers and are more complex in terms of research and development requirements particularly, utilities are allowed to recover up to 20% of their total program cost (cumulative cost of administration and research and development).

Commission response

The commission agrees with the Water Companies that administrative costs may be recovered through donated program funds as part of the "cost of providing the reduced rates." The commission disagrees with Houston and declines to adopt a limit on what portion of donated funds may be used for administrative costs. HB 1083 did not provide for a disallowance of administrative costs for the program; therefore, the commission retains the proposed language.

The commission disagrees with Houston that the term "lost revenues" is broad and should not be included. The commission determines that the donations to the program should cover the difference in rate revenue due to the reduced rate (lost revenue) and also administrative costs; therefore the commission retains the language. HB 1083 anticipates a reduced rate rather than a credit to customer bills and the calculation of lost revenues accounts for the difference in rates.

The commission also adds language to clarify that all expenses (administrative and any other expense) related to the program must be identified in the annual accounting and excluded from the utility's cost of service in order to comply with HB 1083, which states that "A utility may not recover those costs through charges to the utility's other customer classes."

§24.21(b)(2)(E)

The Water Companies agreed with the commission's correction to the example pass-through formula included in 16 TAC §24.21(b)(2)(E). However, the Water Companies are opposed to the additional language proposed to that subsection of "Unless good cause is shown, L (line loss) shall be limited to the lesser of the actual line loss experienced or 15%." The Water Companies believe there is no basis for presuming that a reasonable amount of line loss should be capped at 15%.

Commission response

The commission agrees with the Water Companies. The commission retains the right to analyze water loss on a case-by-case issue and makes a change to the rule language to reflect the Water Companies' recommendation and the case-by-case analysis of line loss.

All comments, including any not specifically referenced herein, were fully considered by the commission. In adopting this section, the commission makes other minor modifications for the purpose of clarifying its intent.

The amendment is adopted under TWC §13.041, which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction. Additionally, the amendment is adopted under HB 1083, which amended TWC §13.182 and §13.189 to allow a utility to establish reduced water utility rates funded by donations for elderly customers and established a deadline of December 31, 2017 for the commission to adopt rules to implement HB 1083

Cross reference to statutes: TWC §§13.041, 13.182, and 13.189.

§24.21.Form and Filing of Tariffs.

(a) Approved tariff. A utility may not directly or indirectly demand, charge, or collect any rate or charge, or impose any classifications, practices, rules, or regulations different from those prescribed in its approved tariff filed with the commission or with the municipality exercising original jurisdiction over the utility, except as follows:

(1) A utility may charge the rates proposed under the Texas Water Code (TWC) §13.187 or §13.1871 on or after the proposed effective date, unless the proposed effective date of the proposed rates is suspended or the regulatory authority sets interim rates.

(2) The regulatory assessment fee required in TWC §5.701(n) does not have to be listed on the utility's approved tariff to be charged and collected but must be included in the tariff at the earliest opportunity.

(3) A person who possesses facilities used to provide retail water utility service or a utility that holds a certificate of public convenience and necessity (CCN) to provide retail water service that enters into an agreement in accordance with TWC §13.250(b)(2), may collect charges for sewer services on behalf of another retail public utility on the same bill with its water charges and shall at the earliest opportunity include a notation on its tariff that it has entered into such an agreement.

(4) A utility may enter into a contract with a county to collect solid waste disposal fees and include those fees on the same bill with its water charges and shall at the earliest opportunity include a notation on its tariff that it has entered into such an agreement.

(b) Requirements as to size, form, identification, minor changes, and filing of tariffs.

(1) Tariffs filed with applications for CCNs.

(A) When applying to obtain or amend a CCN, or to add a new water or sewer system or subdivision to its certificated service area, every utility shall file its proposed tariff with the commission and any regulatory authority with original rate jurisdiction over the utility.

(i) For a utility that is under the original rate jurisdiction of the commission, the tariff shall contain schedules of all the utility's rates, tolls, charges, rules, and regulations pertaining to all of its utility service(s) when it applies for a CCN to operate as a utility. The tariff must be on the form prescribed by the commission or another form acceptable to the commission.

(ii) For a utility under the original rate jurisdiction of a municipality, the utility must file with the commission a copy of its tariff as approved by the municipality.

(B) If a person applying for a CCN is not a retail public utility and would be under the original rate jurisdiction of the commission if the CCN application were approved, the person shall file a proposed tariff with the commission. The person filing the proposed tariff shall also:

(i) provide a rate study supporting the proposed rates, which may include the costs of existing invested capital or estimates of future invested capital;

(ii) provide all calculations supporting the proposed rates;

(iii) provide all assumptions for any projections included in the rate study;

(iv) provide an estimated completion date(s) for the physical plant(s);

(v) provide an estimate of the date(s) service will begin for all phases of construction; and

(vi) provide notice to the commission once billing for service begins.

(C) A person who has obtained an approved tariff for the first time and is under the original rate jurisdiction of the commission shall file a rate change application within 18 months from the date service begins in order to revise its tariff to adjust the rates to a historic test year and to true up the new tariff rates to the historic test year. Any dollar amount collected under the rates charged during the test year in excess of the revenue requirement established by the commission during the rate change proceeding shall be reflected as customer contributed capital going forward as an offset to rate base for ratemaking purposes. An application for a price index rate adjustment under TWC §13.1872 does not satisfy the requirements of this subparagraph.

(D) Every water supply or sewer service corporation shall file with the commission a complete tariff containing schedules of all its rates, tolls, charges, rules, and regulations pertaining to all of its utility services when it applies to operate as a retail public utility and to obtain or amend a CCN.

(2) Minor tariff changes. Except for an affected county or a utility under the original rate jurisdiction of a municipality, a utility's approved tariff may not be changed or amended without commission approval. Minor tariff changes shall not be allowed for any fees charged by affiliates. The addition of a new extension policy to a tariff or modification of an existing extension policy is not a minor tariff change. An affected county may change rates for retail water or sewer service without commission approval, but shall file a copy of the revised tariff with the commission within 30 days after the effective date of the rate change.

(A) The commission, or regulatory authority, as appropriate, may approve the following minor changes to utility tariffs:

(i) service rules and policies;

(ii) changes in fees for customer deposits, meter tests, return check charges, and late charges, provided they do not exceed the maximum allowed by commission rules;

(iii) addition of the regulatory assessment fee payable to the TCEQ as a separate item or to be included in the currently authorized rate;

(iv) addition of a provision allowing a utility to collect retail sewer service charges in accordance with TWC §13.250(b)(2) or §13.147(d);

(v) rate adjustments to implement commission-authorized phased or multi-step rates or downward rate adjustments to reconcile rates with actual costs;

(vi) implementation of an energy cost adjustment clause under subsection (n) of this section;

(vii) implementation or modification of a pass-through provision calculation in a tariff, as provided in subparagraphs (B)-(E) of this paragraph, which is necessary for the correct recovery of the actual charges from pass-through entities, including line loss;

(viii) some surcharges as provided in subparagraph (F) of this paragraph;

(ix) modifications, updates, or corrections that do not affect a rate may be made to the following information contained in the tariff:

(I) the list of the cities, counties, and subdivisions in which service is provided;

(II) the public water system name(s) and corresponding identification number(s) issued by the TCEQ; and

(III) the sewer system names and corresponding discharge permit number(s) issued by the TCEQ.

(B) The commission, or other regulatory authority, as appropriate, may approve a minor tariff change for a utility to establish reduced rates for a minimal level of retail water service to be provided solely to a class of elderly customers 65 years of age or older to ensure that those customers receive that level of retail water service at more affordable rates. The regulatory authority shall allow a utility to establish a fund to receive donations to recover the costs of providing the reduced rates. A utility may not recover those costs through charges to its other customer classes.

(i) To request a rate as defined in this subparagraph, the utility must file a proposed plan for review by the commission. The plan shall include:

(I) A proposed plan for collection of donations to establish a fund to recover the costs of providing the reduced rates.

(II) The National Association of Regulatory Utility Commissioners (NARUC) account or subaccount name and number in which the donations will be accounted for, and a clear definition of how the administrative costs of operation of the program are accounted for and removed from the cost of service for rate making purposes. Any interest earned on donated funds will be considered a donation to the fund.

(III) An effective date of the program and an example of an annual accounting for donations received and a calculation of all lost revenues and the journal entries that transfer the funds from the account in this subparagraph of this clause to the utility's revenue account. The annual accounting shall be available to audit by the commission upon request.

(IV) An example bill with the contribution line item, if receiving contributions from customers.

(ii) For the purpose of clause (i) of this subparagraph, recovery of lost revenues from donations shall only include the lost revenues due to the difference in the utility's tariffed retail water rates and the reduced rates established by this subparagraph.

(iii) The minimal level of retail water service requested by the utility shall be no more than 3,000 gallons per month per connection. Additional gallons used shall be billed at the utility's tariffed rates.

(iv) For purposes of the provision in this subparagraph, a reduced rate authorized under this section does not:

(I) Make or grant an unreasonable preference or advantage to any corporation or person;

(II) Subject a corporation or person to an unreasonable prejudice or disadvantage; or

(III) Constitute an unreasonable difference as to retail water rates between classes of service.

(C) If a utility has provided proper notice as required in subparagraph (F) of this paragraph, the commission may approve a pass-through provision as a minor tariff change, even if the utility has never had an approved pass-through provision in its tariff. A pass-through provision may not be approved for a charge already included in the utility's cost of service used to calculate the rates approved by the commission in the utility's most recently approved rate change under TWC §13.187 or TWC §13.1871. A pass-through provision may only include passing through of the actual costs charged to the utility. Only the commission staff or the utility may request a hearing on a proposed pass-through provision or a proposed revision or change to a pass-through provision. A pass-through provision may be approved in the following situation(s):

(i) A utility that purchases water or sewage treatment and whose rates are under the original jurisdiction of the commission may include a provision in its tariff to pass through to its customers changes in such costs. The provision must specify how it is calculated.

(ii) A utility may pass through a temporary water rate provision implemented in response to mandatory reductions in water use imposed by a court, government agency, or other authority. The provision must specify how the temporary water rate provision is calculated.

(iii) A utility may include the addition of a production fee charged by a groundwater conservation district, including a production fee charged in accordance with a groundwater reduction plan entered in to by a utility in response to a groundwater conservation district production order or rule, as a separate line item in the tariff.

(iv) A utility may pass through the costs of changing its source of water if the source change is required by a governmental entity. The pass-through provision may not be effective prior to the date the conversion begins. The pass-through provision must be calculated using an annual true-up provision.

(v) A utility subject to more than one pass-through cost allowable in this section may request approval of an overall combined pass-through provision that includes all allowed pass-through costs to be recovered in one provision under subparagraph (D) of this paragraph. The twelve calendar months (true-up period) for inclusion in the true-up must remain constant, e.g., January through December.

(vi) A utility that has a combined pass-through provision in its approved tariff may request to amend its tariff to replace the combined pass-through provision with individual pass-through provisions if all revenues and expenses have been properly trued up in a true-up report and all over-collections have been credited back to the customers. A utility that has replaced its previously approved combined pass-through provision with individual provisions may not request another combined pass-through until three years after the replacement has been approved unless good cause is shown.

(D) A change in the combined pass-through provision may only be implemented once per year. The utility must file a true-up report within one month after the end of the true-up period. The report must reconcile both expenses and revenues related to the combined pass-through charge for the true-up period. If the true-up report reflects an over-collection from customers, the utility must change its combined pass-through rate using the confirmed rate changes to charges being passed through and the over-collection from customers reflected in the true-up report. If the true-up report does not reflect an over-collection from the customers, the implementation of a change to the pass-through rate is optional. The change may be effective in a billing cycle within three months after the end of the true-up period as long as the true-up clearly shows the reconciliation between charges by pass-through entities and collections from the customers, and charges from previous years are reconciled. Only expenses charged by the pass-through provider(s) shall be included in the provision. The true-up report shall include:

(i) a list of all entities charging fees included in the combined pass-through provision, specifying any new entities added to the combined pass-through provision;

(ii) a summary of each charge passed through in the report year, along with documentation verifying the charge assessed and showing the amount the utility paid;

(iii) a comparison between annual amounts billed by all entities charging fees included in the pass-through provision with amounts billed for the usage by the utility to its customers in the pass-through period;

(iv) all calculations and supporting documentation;

(v) a summary report, by year, for the lesser of all years prior or five years prior to the pass-through period showing the same information as in clause (iii) of this subparagraph with a reconciliation to the utility's booked numbers, if there is a difference in any year; and

(vi) any other documentation or information requested by the commission.

(E) For any pass-through provision granted under this section, all charges approved for recovery of pass-through costs shall be stated separately from all charges by the utility to recover the revenue requirement. Except for a combined pass-through provision, the calculation for a pass-through gallonage rate for a utility with one source of water may be made using the following equation, which is provided as an example: R=G /(1-L), where R is the utility's new proposed pass-through rate, G equals the new gallonage charge by source supplier or conservation district, and L equals the actual line loss reflected as a percentage expressed in decimal format (for example, 8.5% would be expressed as 0.085). Line loss will be considered on a case-by-case basis.

(F) A utility that wishes to revise or implement an approved pass-through provision shall take the following actions prior to the beginning of the billing period in which the revision takes effect:

(i) file a written notice with the commission that must include:

(I) the affected CCN number(s);

(II) a list of the affected subdivision(s), public water system name(s) and corresponding number(s) issued by the TCEQ, and the water quality system name(s) and corresponding number(s) issued by the TCEQ, if applicable;

(III) a copy of the notice to the customers;

(IV) documentation supporting the stated amounts of any new or modified pass-through costs;

(V) historical documentation of line loss for one year;

(VI) all calculations and assumptions for any true-up of pass-through costs;

(VII) the calculations and assumptions used to determine the new rates; and

(VIII) a copy of the pages of the utility's tariff that contain the rates that will change if the utility's application is approved; and

(ii) e-mail (if the customer has agreed to receive communications electronically), mail, or hand-deliver notice to the utility's customers. Notice may be in the form of a billing insert and must contain:

(I) the effective date of the change;

(II) the present calculation of customer billings;

(III) the new calculation of customer billings;

(IV) an explanation of any corrections to the pass-through formula, if applicable;

(V) the change in charges to the utility for purchased water or sewer treatment or ground water reduction fee or subsidence, if applicable; and

(VI) the following language: "This tariff change is being implemented in accordance with the minor tariff changes allowed by 16 Texas Administrative Code §24.21. The cost to you as a result of this change will not exceed the costs charged to your utility."

(G) The following provisions apply to surcharges:

(i) A surcharge is an authorized rate to collect revenues over and above the usual cost of service.

(ii) If authorized by the commission or the municipality exercising original jurisdiction over the utility, a surcharge to recover the actual increase in costs to the utility may be collected over a specifically authorized time period without being listed on the approved tariff for:

(I) sampling fees not already recovered by rates;

(II) inspection fees not already recovered by rates;

(III) production fees or connection fees not already recovered by rates charged by a groundwater conservation district; or

(IV) other governmental requirements beyond the control of the utility.

(iii) A utility shall use the revenues collected through a surcharge approved by the commission only for the purposes noted in the order approving the surcharge. A utility shall handle the funds in the manner specified in the order approving the surcharge. The utility may redirect or use the revenues for other purposes only after first obtaining the approval of the commission.

(iv) The commission may require a utility to file periodic and/or final accounting information to show the collection and disbursement of funds collected through an approved surcharge.

(3) Tariff revisions and tariffs filed with rate changes.

(A) If the commission is the regulatory authority, the utility shall file its revisions with the commission. If a proposed tariff revision constitutes an increase in existing rates of a particular customer class or classes, then the commission may require that notice be given.

(B) Each revision must be accompanied by a copy of the original tariff and a red-lined copy of the proposed tariff revisions clearly showing the proposed changes.

(4) Rate schedule. Each rate schedule must clearly state the public water system name(s) and the corresponding identification number(s) issued by the TCEQ or the sewer system name(s) and the corresponding identification number(s) issued by the TCEQ for each discharge permit, subdivision, city, and county in which the schedule is applicable.

(5) Tariff pages. Tariff pages must be numbered consecutively. Each page must show section number, page number, name of the utility, and title of the section in a consistent manner.

(c) Composition of tariffs. A utility's tariff, including those utilities operating within the corporate limits of a municipality, must contain sections setting forth:

(1) a table of contents;

(2) a list of the cities, counties, and subdivision(s) in which service is provided, along with the public water system name(s) and corresponding identification number(s) issued by the TCEQ and sewer system names and corresponding discharge permit number(s) issued by the TCEQ to which the tariff applies;

(3) the CCN number(s) under which service is provided;

(4) the rate schedules;

(5) the service rules and regulations, including forms of the service agreements, if any, and customer service inspection forms to be completed as required by the TCEQ;

(6) the extension policy;

(7) an approved drought contingency plan as required by the TCEQ; and

(8) the forms of payment to be accepted for utility services.

(d) Tariff filings in response to commission orders. Tariff filings made in response to an order issued by the commission must include a transmittal letter stating that the tariff attached is in compliance with the order, giving the docket number, date of the order, a list of tariff pages filed, and any other necessary information. Any service rules proposed in addition to those listed on the commission's tariff form or any modifications of a rule in the tariff must be clearly noted. All tariff pages must comply with all other sections in this chapter and must include only changes ordered. The effective date and/or wording of the tariff must comply with the provisions of the order.

(e) Availability of tariffs. Each utility shall make available to the public at each of its business offices and designated sales offices within Texas all of its tariffs currently on file with the commission or regulatory authority, and its employees shall lend assistance to persons requesting information and afford these persons an opportunity to examine any such tariffs upon request. The utility also shall provide copies of any portion of the tariffs at a reasonable cost to a requesting party.

(f) Rejection. Any tariff filed with the commission and found not to be in compliance with this section shall be returned to the utility with a brief explanation of the reasons for rejection.

(g) Change by other regulatory authorities. Each utility operating within the corporate limits of a municipality exercising original jurisdiction shall file with the commission its current tariff that has been authorized by the municipality. If changes are made to the utility's tariff for one or more service areas under the jurisdiction of the municipality, the utility shall file its tariff reflecting the changes along with the ordinance, resolution or order issued by the municipality to authorize the change.

(h) Effective date. The effective date of a tariff change is the date of approval by the regulatory authority, unless otherwise specified by the regulatory authority, in a commission order, or by rule. The effective date of a proposed rate increase under TWC §13.187 or §13.1871 is the proposed date on the notice to customers and the regulatory authority, unless suspended by the regulatory authority.

(i) Tariffs filed by water supply or sewer service corporations. Every water supply or sewer service corporation shall file, for informational purposes only, its tariff showing all rates that are subject to the appellate jurisdiction of the commission and that are in force for any utility service, product, or commodity offered. The tariff must include all rates, rules, and regulations relating to utility service or extension of service, the CCN number(s), and all affected counties or cities. If changes are made to the water supply or sewer service corporation's tariff, the water supply or sewer service corporation shall file the tariff reflecting the changes, along with a cover letter with the effective date of the change. Tariffs filed under this subsection shall be filed in conformance with §22.71 of this title (relating to Filing of Pleadings, Documents, and Other Materials) and §22.72 of this title (relating to Formal Requisites of Pleadings and Documents to be Filed with the Commission).

(j) Temporary water rate provision for mandatory water use reduction.

(1) A utility's tariff may include a temporary water rate provision that will allow the utility to increase its retail customer rates during periods when a court, government agency, or other authority orders mandatory water use reduction measures that affect the utility customers' use of water service and the utility's water revenues. Implementation of the temporary water rate provision will allow the utility to recover revenues that the utility would otherwise have lost due to mandatory water use reductions. If a utility obtains an alternate water source to replace the required mandatory reduction during the time the temporary water rate provision is in effect, the temporary water rate provision must be adjusted to prevent over-recovery of revenues from customers. A temporary water rate provision may not be implemented if an alternative water supply is immediately available without additional cost.

(2) The temporary water rate provision must be approved by the regulatory authority having original jurisdiction in a rate proceeding before it may be included in the utility's approved tariff or implemented as provided in this subsection. A proposed change in the temporary water rate provision must be approved in a rate proceeding. A utility that has filed a rate change within the last 12 months may file a request for the limited purpose of obtaining a temporary water rate provision.

(3) A utility may request a temporary water rate provision for mandatory water use reduction using the formula in this paragraph to recover 50% or less of the revenues that would otherwise have been lost due to mandatory water use reductions. The formula for a temporary water rate provision for mandatory water use reduction under this paragraph is:

Figure: 16 TAC §24.21(j)(3) (No change.)

(A) The utility shall file a temporary water rate provision for mandatory water use reduction request and provide customer notice as required by the regulatory authority, but is not required to provide complete financial data to support its existing rates. Notice must include a statement of when the temporary water rate provision would be implemented, the customer class(es) affected, the rates affected, information on how to protest and/or intervene in the rate change, the address of the regulatory authority, the time frame for protests, and any other information that is required by the regulatory authority. The utility's existing rates are not subject to review in this proceeding and the utility is only required to support the need for the temporary rate. A request for a temporary water rate provision for mandatory water use reduction under this paragraph is not considered a statement of intent to increase rates subject to the 12-month limitation in §24.23 of this title (relating to Time Between Filings).

(B) The utility shall establish that the projected revenues that will be generated by the temporary water rate provision are required by the utility to pay reasonable and necessary expenses that will be incurred by the utility during the time mandatory water use reductions are in effect.

(4) A utility may request a temporary water rate provision for mandatory water use reduction using the formula in paragraph (3) of this subsection or any other method acceptable to the regulatory authority to recover up to 100% of the revenues that would otherwise have been lost due to mandatory water use reductions.

(A) If the utility requests authorization to recover more than 50% of lost revenues, it shall submit financial data to support its existing rates as well as the temporary water rate provision for mandatory water use reduction even if no other rates are proposed to be changed. The utility's existing rates are subject to review in addition to the temporary water rate provision for mandatory water use reduction.

(B) The utility shall establish that the projected revenues that will be generated by the temporary water rate provision for mandatory water use reduction are required by the utility to pay reasonable and necessary expenses that will be incurred by the utility during the time mandatory water use reductions are in effect; that the rate of return granted by the regulatory authority in the utility's last rate case does not adequately compensate the utility for the foreseeable risk that mandatory water use reductions will be ordered; and that revenues generated by existing rates do not exceed reasonable cost of service.

(5) The utility may place the temporary water rate provision into effect only after:

(A) it has been approved by the regulatory authority and included in the utility's approved tariff in a prior rate proceeding;

(B) there is an action by a court, government agency, or other authority requiring mandatory water use reduction measures that affect the utility's customers' use of utility services; and

(C) issuing notice as required by paragraph (7) of this subsection.

(6) The utility may readjust its temporary water rate provision to respond to modifications or changes to the original required water use reductions by reissuing notice as required by paragraph (7) of this subsection. If the commission is the regulatory authority, only the commission or the utility may request a hearing on the proposed implementation.

(7) A utility implementing a temporary water rate for mandatory water use reduction shall take the following actions prior to the beginning of the billing period in which the temporary water rate provision takes effect:

(A) submit a written notice, including a copy of the notice received from the court, government agency, or other authority requiring the reduction in water use, to the regulatory authority; and

(B) e-mail, if the customer has agreed to receive communications electronically, or mail notice to the utility's customers. Notice may be in the form of a billing insert and must contain the effective date of the implementation and the new rate the customers will pay after the temporary water rate provision is implemented. If the commission is the regulatory authority, the notice must include the following language: "This rate change is being implemented in accordance with the temporary water rate provision approved by the Public Utility Commission of Texas to recognize the loss of revenues due to mandatory water use reduction ordered by (name of entity issuing order). The new rates will be effective on (date) and will remain in effect until the mandatory water use reductions are lifted or expired. The purpose of the rate is to ensure the financial integrity of the utility. The utility will recover through the rate (the percentage authorized by the temporary rate) % of the revenues the utility would otherwise have lost due to mandatory water use reduction by increasing the volume charge from ($ per 1,000 gallons to $ per 1,000 gallons)."

(8) A utility shall stop charging a temporary water rate provision as soon as is practicable after the order that required mandatory water use reduction is ended, but in no case later than the end of the billing period that was in effect when the order was ended. The utility shall notify its customers of the date that the temporary water rate provision ends and that its rates will return to the level authorized before the temporary water rate provision was implemented. The notice provided to customers regarding the end of the temporary water rate provision shall be filed with the commission.

(9) If the regulatory authority initiates an inquiry into the appropriateness or the continuation of a temporary water rate provision, it may establish the effective date of its decision on or after the date the inquiry is filed.

(k) Multiple system consolidation. Except as otherwise provided in subsection (m) of this section, a utility may consolidate its tariff and rate design for more than one system if:

(1) the systems included in the tariff are substantially similar in terms of facilities, quality of service, and cost of service; and

(2) the tariff provides for rates that promote water conservation for single-family residences and landscape irrigation.

(l) Regional rates. The regulatory authority, where practicable, shall consolidate the rates by region for applications submitted under TWC §13.187 or §13.1871 with a consolidated tariff and rate design for more than one system.

(m) Exemption. Subsection (k) of this section does not apply to a utility that provided service in only 24 counties on January 1, 2003.

(n) Energy cost adjustment clause.

(1) A utility that purchases energy (electricity or natural gas) that is necessary for the provision of retail water or sewer service may request the inclusion of an energy cost adjustment clause in its tariff to allow the utility to adjust its rates to reflect increases and decreases in documented energy costs.

(2) A utility that requests the inclusion of an energy cost adjustment clause in its tariff shall file a request with the commission. The utility shall also give notice of the proposed energy cost adjustment clause by mail, either separately or accompanying customer billings, e-mail or by hand delivery to all affected utility customers at least 60 days prior to the proposed effective date. Proof of notice in the form of an affidavit stating that proper notice was delivered to affected customers and stating the date(s) of such delivery shall be filed with the commission by the utility as part of the request. Notice must be provided on the form prescribed by the commission for a rate application package filed under TWC §13.187 or §13.1871 and must contain the following information:

(A) the utility name and address, a description of how the increase or decrease in energy costs will be calculated, the effective date of the proposed change, and the class(es) of utility customers affected. The effective date of the proposed energy cost adjustment clause must be the first day of a billing period, which should correspond to the day of the month when meters are typically read, and the clause may not apply to service received before the effective date of the clause;

(B) information on how to submit comments regarding the energy cost adjustment clause, the address of the commission, and the time frame for comments; and

(C) any other information that is required by the commission.

(3) The commission's review of the utility's request is an uncontested matter not subject to a contested case hearing. However, the commission shall hold an uncontested public meeting if requested by a member of the legislature who represents an area served by the utility or if the commission determines that there is substantial public interest in the matter.

(4) Once an energy cost adjustment clause has been approved, documented changes in energy costs must be passed through to the utility's customers within a reasonable time. The pass-through, whether an increase or decrease, shall be implemented on at least an annual basis, unless the commission determines a special circumstance applies. Anytime changes are being made using this provision, notice shall be provided as required by paragraph (5) of this subsection. Copies of notices to customers shall be filed with the commission,

(5) Before a utility implements a change in its energy cost adjustment clause as required by paragraph (4) of this subsection, the utility shall take the following actions prior to the beginning of the billing period in which the implementation takes effect:

(A) submit written notice to the commission, which must include a copy of the notice sent to the customers, proof that the documented energy costs have changed by the stated amount; and

(B) e-mail, if the customer has agreed to receive communications electronically, mail, either separately or accompanying customer billings, or hand deliver notice to the utility's affected customers. Notice must contain the effective date of change and the increase or decrease in charges to the utility for documented energy costs. The notice must include the following language: "This tariff change is being implemented in accordance with the utility's approved energy cost adjustment clause to recognize (increases) (decreases) in the documented energy costs. The cost of these charges to customers will not exceed the (increase) (decrease) in documented energy costs."

(6) The commission may suspend the adoption or implementation of an energy cost adjustment clause if the utility has failed to properly file the request or has failed to comply with the notice requirements or proof of notice requirements. If the utility cannot clearly demonstrate how the clause is calculated, the increase or decrease in documented energy costs or how the increase or decrease in documented energy costs will affect rates, the commission may suspend the adoption or implementation of the clause until the utility provides additional documentation requested by the commission. If the commission suspends the adoption or implementation of the clause, the adoption or implementation will be effective on the date specified by the commission.

(7) Energy cost adjustment clauses may not apply to contracts or transactions between affiliated interests.

(8) A proceeding under this subsection is not a rate case under TWC §§13.187, 13.1871, or 13.1872.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 18, 2017.

TRD-201705246

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Effective date: January 7, 2018

Proposal publication date: September 15, 2017

For further information, please call: (512) 936-7223


PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

CHAPTER 64. TEMPORARY COMMON WORKER EMPLOYERS

16 TAC §§64.1, 64.10, 64.20, 64.70, 64.72, 64.80

The Texas Commission of Licensing and Regulation (Commission) adopts the repeal of existing rules at 16 Texas Administrative Code (TAC), Chapter 64, §§64.1, 64.10, 64.20, 64.70, 64.72, and 64.80, regarding the Temporary Common Worker Employers program, without changes to the proposed text as published in the October 6, 2017, issue of the Texas Register (42 TexReg 5305). The rules will not be republished.

The adoption repeals the existing rules of the Commission, the governing body of the Texas Department of Licensing and Regulation (Department), regarding the licensing and regulation of temporary common worker employers by the Department. The existing rules under 16 TAC Chapter 64 implemented Texas Labor Code, Chapter 92.

The repeal of the existing rules is necessary to implement Senate Bill (S.B.) 2065, 85th Legislature, Regular Session, 2017. This bill, in part, repealed the state licensing requirements for temporary common worker employers under Texas Labor Code, Chapter 92, Temporary Common Worker Employers. S.B. 2065 preserved the provisions in Chapter 92 regarding the standards of conduct and practice for temporary common worker employers and the provision allowing municipalities over 1 million people to impose stricter standards of conduct and practice. As amended by S.B. 2065, unless prohibited by a governmental subdivision, a temporary common worker employer is authorized to operate in the state if it meets the requirements of Chapter 92. A governmental subdivision may enforce Chapter 92 within the boundaries of the governmental subdivision. These statutory changes were effective September 1, 2017.

The adoption repeals the existing rules for the Temporary Common Worker Employers Program under 16 TAC Chapter 64, §§64.1, 64.10, 64.20, 64.70, 64.72, and 64.80. As of September 1, 2017, the Department no longer licenses or regulates temporary common worker employers.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the October 6, 2017, issue of the Texas Register (42 TexReg 5305). The deadline for public comments was November 6, 2017. The Department did not receive any comments during the 30-day public comment period.

At its meeting on December 15, 2017, the Commission adopted the proposed repeal without changes.

The repeal is adopted under Texas Occupations Code, Chapter 51, which authorizes the Commission, the Department's governing body, to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Texas Labor Code, Chapter 92. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705312

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


CHAPTER 65. BOILERS

The Texas Commission of Licensing and Regulation (Commission) adopts amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 65, Subchapter A, §65.1 and §65.2; Subchapter C, §§65.13 - 65.15; Subchapter D §65.25; Subchapter E, §65.30; Subchapter G, §65.45; Subchapter J, §65.72; Subchapter N, §65.217; Subchapter O, §65.300; Subchapter R, §§65.601, 65.603, 65.606 - 65.609; the repeal of current Subchapter I, §65.63; and new Subchapter I, §65.63 and §65.64, regarding the Boilers program, without changes to the proposed text as published in the October 6, 2017, issue of the Texas Register (42 TexReg 5307). The rules will not be republished.

The Commission also adopts amendments to existing rules at 16 TAC, Chapter 65, Subchapter C, §65.12, with changes to the proposed text as published in the October 6, 2017, issue of the Texas Register (42 TexReg 5307). The rule will be republished.

The Texas Legislature enacted House Bill 3257 (HB 3257), 85th Legislature, Regular Session (2017), which set the periodicity of portable boiler inspections. Editorial corrections and clarifications are also being adopted. The adopted amendments, repeal and new rules are necessary to implement HB 3257.

The adopted amendments to §65.1 correct the statutory authority.

The adopted amendments to §65.2 remove the definitions for "existing installations" and "new installations" since the terms are not used in this program. Editorial changes are also made to renumber the section accordingly.

The adopted amendments to §65.12 clarify that the current certificate of operation is to be displayed under glass in a conspicuous place on or near the boiler.

The adopted amendments to §65.13 clarify the process to test-fire and operate a newly installed boiler and the Temporary Operating Permit.

The adopted amendments to §65.14 correct the name of the National Board Commission and require the applicant to demonstrate they meet eligibility requirements.

The adopted amendments to §65.15 change the title of the section to correctly name boiler certification requirements and clarify when inspection reports and written authorization are needed.

The adopted amendments to §65.25 change the title of the section to correctly name authorized inspector requirements.

The adopted amendments to §65.30 clarify the requirement for the applicant to demonstrate they meet eligibility requirements.

The adopted amendments to §65.45 remove "portable boiler" language in the title and section to be placed in a new section.

The adopted repeal of current §65.63 is to renumber it to adopted new §65.64.

The adopted new §65.63 establishes the requirements of HB 3257.

The adopted amendments to §65.72 further identify which stamped tag designates the boiler as condemned and clarify the decal which shall be altered/defaced.

The adopted amendments to §65.217 add a reference and makes an editorial change.

The adopted amendments to §65.300 correct the title to reflect all fees and specify who is required to pay each fee.

The adopted amendments to §65.601 clarify existing language to reflect practice and make editorial changes.

The adopted amendments to §65.603 clarify where the record of calibration must be placed.

The adopted amendments to §65.606 correct the title of the section to reflect practice.

The adopted amendments to §65.607 make editorial changes.

The adopted amendments to §65.608 make editorial changes.

The adopted amendments to §65.609 make editorial changes.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the October 6, 2017, issue of the Texas Register (42 TexReg 5307). The deadline for public comments was November 6, 2017. The Department did not receive any comments on the proposed rules during the 30-day public comment period.

The Board of Boiler Rules (Board) met on November 14, 2017, and recommended adopting the proposed rules with changes to §65.12(2) conforming that subsection to Health and Safety Code §755.029(c). At its meeting on December 15, 2017, the Commission adopted the proposed rules with changes as recommended by the Board.

SUBCHAPTER A. GENERAL PROVISIONS

16 TAC §65.1, §65.2

The amendments are adopted under Texas Occupations Code, Chapter 51, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705335

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER C. BOILER REGISTRATION AND CERTIFICATE OF OPERATION--REQUIREMENTS

16 TAC §§65.12 - 65.15

The amendments are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

§65.12.Boiler Registration and Certificate of Operation Required.

Except as provided by this chapter, each boiler operated in this state must:

(1) be registered with the department; and

(2) have qualified for a current certificate of operation with the current certificate of operation posted under glass in a conspicuous place on or near the boiler for which it is issued.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705336

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER D. AUTHORIZED INSPECTOR

16 TAC §65.25

The amendments are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705337

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER E. EXAMINATIONS AND WAIVER OF EXAMINATION

16 TAC §65.30

The amendments are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705338

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER G. APPLICATION TO OPERATE PORTABLE AND STATIONARY NONSTANDARD BOILERS IN THE STATE

16 TAC §65.45

The amendments are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705339

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER I. INSPECTION OF BOILERS

16 TAC §65.63

The repeal is adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and other law establishing a program regulated by the Department.

The statutory provisions affected by the repeal are those set forth in the Texas Occupations code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705340

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


16 TAC §65.63, §65.64

The new rules are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705341

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER J. TEXAS BOILER NUMBERS

16 TAC §65.72

The amendments are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705342

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER N. RESPONSIBILITIES OF THE OWNER AND OPERATOR

16 TAC §65.217

The amendments are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the proposal.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705343

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER O. FEES

16 TAC §65.300

The amendments are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705345

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


SUBCHAPTER R. TECHNICAL REQUIREMENTS

16 TAC §§65.601, 65.603, 65.606 - 65.609

The amendments are adopted under Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and Health and Safety Code, Chapter 755. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705344

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


CHAPTER 71. WARRANTORS OF VEHICLE PROTECTION PRODUCTS

16 TAC §§71.1, 71.10, 71.20, 71.22, 71.70, 71.80, 71.90

The Texas Commission of Licensing and Regulation (Commission) adopts the repeal of existing rules at 16 Texas Administrative Code (TAC), Chapter 71, §§71.1, 71.10, 71.20, 71.22, 71.70, 71.80, and 71.90, regarding the Vehicle Protection Product Warrantors program, without changes to the proposed text as published in the September 29, 2017, issue of the Texas Register (42 TexReg 5199). The rules will not be republished.

The adoption repeals the existing rules of the Commission, the governing body of the Texas Department of Licensing and Regulation (Department), regarding the licensing and regulation of vehicle protection product warrantors by the Department. The existing rules under 16 TAC Chapter 71 implemented the former Texas Occupations Code, Chapter 2306.

The repeal of the existing rules is necessary to implement Senate Bill (S.B.) 2065, 85th Legislature, Regular Session, 2017. This bill, in part, repealed Texas Occupations Code, Chapter 2306, Vehicle Protection Product Warrantors, and relocated the regulation of vehicle protection products and warrantors to Texas Business and Commerce Code, Chapter 17, Subchapter E, the Deceptive Trade Practices-Consumer Protection Act. These statutory changes were effective September 1, 2017.

The adoption repeals the existing rules for the Vehicle Protection Product Warrantors Program under 16 TAC Chapter 71, §§71.1, 71.10, 71.20, 71.22, 71.70, 71.80, and 71.90. As of September 1, 2017, the Department no longer regulates or licenses vehicle protection products or warrantors.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the September 29, 2017, issue of the Texas Register (42 TexReg 5199). The deadline for public comments was October 30, 2017. The Department did not receive any comments during the 30-day public comment period.

At its meeting on December 15, 2017, the Commission adopted the proposed repeal without changes.

The repeal is adopted under Texas Occupations Code, Chapter 51, which authorizes the Commission, the Department's governing body, to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51 and former Chapter 2306, and Texas Business and Commerce Code, Chapter 17. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705296

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: September 29, 2017

For further information, please call: (512) 463-3671


CHAPTER 73. ELECTRICIANS

16 TAC §73.26

The Texas Commission of Licensing and Regulation (Commission) adopts the amendment of an existing rule at 16 Texas Administrative Code (TAC), Chapter 73, §73.26, regarding the Electricians program, without changes to the proposed text as published in the August 18, 2017, issue of the Texas Register (42 TexReg 4081). The rules will not be republished.

The adopted amendment of the existing rule is necessary to §73.26 to simplify the language of the existing rule and add one substantive provision. Section 73.26(b) currently requires electrical licensees to "provide verifiable documentation of the on-the-job training hours of an applicant they have supervised upon the request of the department." However, the rule does not provide a date by which the licensee must provide the necessary verification. The adopted amendment to subsection (b) creates a deadline of 30 days for a licensee to verify an applicant's on-the-job experience. The adopted amendments are necessary to make §73.26 more reader-friendly and to provide clearer guidance to applicants and licensees regarding verification of on-the-job experience.

The adopted amendments to §73.26 simplify the rule's language and impose a deadline of 30 days for a licensee to verify an applicant's on-the-job experience

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the August 18, 2017, issue of the Texas Register (42 TexReg 4081). The deadline for public comments was September 18, 2017. The Department received nine comments during the 30-day public comment period. The public comments received are summarized below.

Comment--Three commenters agreed with the Department's rule proposal.

Department Response--The Department appreciates these comments. The Department did not make any changes to the rules in response to these comments.

Comment--One commenter inquired about a continuing education course for his license.

Department Response--This comment was forwarded to the Education and Examination Division for a response. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter voiced concern regarding the lack of reciprocity for the master electrician license.

Department Response--The Department appreciates the comment, but it is outside the scope of this rulemaking. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter inquired about the renewal process for an expired license.

Department Response--This comment was forwarded to the Licensing Division for a response. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter asked whether, under the proposed rule, an applicant may verify his or her own on-the-job experience.

Department Response--The proposed rule, like the current rule, requires a person authorized by Chapter 1305 of the Texas Occupations Code to verify on-the-job training. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter expressed disagreement with the proposed rule, claiming that the Department will not be able to enforce the rule. The commenter recommended the rule remain as is.

Department Response--The Department understands the commenter's concerns, but disagrees with the commenter's conclusion regarding its ability to enforce the rule. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter referred to his test score.

Department Response--This comment is outside the scope of this rulemaking. The Department did not make any changes to the rules in response to this comment.

The Electrical Safety and Licensing Advisory Board met on November 2, 2017, to discuss the proposed amendments and the public comments received. The Board recommended adopting the proposed amendments without changes.

At its meeting on December 15, 2017, the Commission adopted the proposed amendments with changes.

The amendment is adopted under Texas Occupations Code, Chapter 51, which authorizes the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51 and 1305. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705318

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: August 18, 2017

For further information, please call: (512) 463-3671


CHAPTER 82. BARBERS

The Texas Commission of Licensing and Regulation (Commission) adopts the amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 82, §§82.10, 82.20, 82.22, 82.23, 82.29, 82.40, 82.50, 82.52, 82.54, 82.70 - 82.72, 82.78, 82.80, 82.102, and 82.108; and the repeal of current §82.53, regarding the Barbers program, without changes to the proposed text as published in the October 6, 2017, issue of the Texas Register (42 TexReg 5315). The rules will not be republished.

The Texas Legislature enacted Senate Bill 1503, Senate Bill 2065, House Bill 2738, House Bill 2739, 85th Legislature, Regular Session (2017). The adopted amendments and repeal include removing the requirement for a shampoo apprentice permit or shampoo specialty certificate; eliminating risk-based inspections; clarifying the definition of barbering to exclude threading; authorizing licensed schools to account for hours on the basis of clock or credit; allowing standards to be established for equivalency and conversion of clock to credit hours and vice versa; removing square footage, chair, and sink requirements for barber schools; and distinguishing between larger and specialty school requirements. The adopted amendments and repeal are necessary to implement the legislative changes.

The adopted amendments to §82.10 corrects a reference.

The adopted amendments to §82.20 adds the word "specialty" to match current statutory language.

The adopted amendments to §82.22 adds a reference regarding specialty shop permits.

The adopted amendments to §82.23 removes specific requirements for barber schools.

The adopted amendments to §82.29 clarifies the current requirements for an establishment relocation or change of ownership.

The adopted amendments to §82.40 increases the amount per claim that a student may receive in the event of a school closure.

The adopted amendments to §82.50 removes the reference to risk-based inspections.

The adopted amendments to §82.52 removes risk-based inspections as part of periodic inspections.

The adopted repeal of §82.53 removes risk-based inspections and the classifications.

The adopted amendments to §82.54 allows individuals a full ten days to complete the necessary modification after an inspection.

The adopted amendments to §82.70 corrects language to make it consistent throughout the chapter.

The adopted amendments to §82.71 remove shampoo permit requirements, make language consistent, and correct a reference.

The adopted amendments to §82.72 remove shampoo requirements and outdated language and establish equivalency and conversion standards between credit and clock hours.

The adopted amendments to §82.78 clarifies language and updates a reference.

The adopted amendments to §82.80 removes fees relating to risk-based inspections and renumbers the section accordingly.

The adopted amendments to §82.102 streamlines language for clarity and quick reference.

The adopted amendments to §82.108 makes an editorial change.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the October 6, 2017, issue of the Texas Register (42 TexReg 5315). The deadline for public comments was November 6, 2017. The Department received sixteen comments during the 30-day public comment period. The public comments received are summarized below.

Comment--Twelve commenters would like to see the restriction removed from rule that prevents a cosmetology school from operating on the same premises as a barber school.

Department Response--This comment does not address any current proposed rule. The purpose of the proposed rules is to implement changes as a result of legislation passed during the 85th Texas Legislative Session. These comments have been forwarded to the appropriate division for review. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter would like to know how to obtain a license in Texas.

Department Response--This comment does not address any current proposed rule. The purpose of the proposed rules is to implement changes as a result of legislation passed during the 85th Texas Legislative Session. This comment has been forwarded to the appropriate division for review. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter raised several issues regarding the Barber Program. First, the commenter states that the Department lacks follow-up with barber school students. The commenter believes that there should always be a mandate over the number of sinks within an establishment and consumer protection should be the sole purpose of governance. The commenter raises general concerns about the need for better sanitary regulations and Department follow-up. The commenter believes that there needs to be mandates on braiding and does not agree with the Commission choosing to deregulate or lift regulations due to lack of enforcement. The commenter believes that proposed amendments in §§82.23, 82.52, 82.54 82.71, 82.72, and 82.80 need to be reconsidered because the removal of these rules will result in more lawsuits.

Department Response--The purpose of the proposed rules is to implement changes as a result of legislation passed during the 85th Texas Legislative Session. The commenter's remarks regarding Department processes and "follow up" with students may be addressed with the Department through our current complaint process. These comments have been forwarded to the correct division for review. The Department is the primary state agency responsible for the oversight of businesses, industries, general trades, and occupations that are regulated by the state and assigned to the department by the legislature. During the 85th Texas Legislative Session, the legislature passed Senate Bill 2065 and House Bill 2739, removing the Commission's ability to establish building and facility standards that are not related to health and safety and removes square footage, chair, and sink requirements. The legislature also chose to deregulate hair braiding during the 84th Texas Legislative Session (House Bill 2717). Furthermore, the proposed rule changes to §§82.23, 82.52, 82.71, 82.72, and 82.80 are a result of legislative measure passed during the 85th Legislative Session. The proposed change to §82.54 provides more flexibility to the owner and department to ensure corrective modifications are made following an inspection. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter asks if any changes were made relating to enforcement provisions for obtaining a barber license if the applicant has a felony charge.

Department Response--This comment does not address any current proposed rule. No changes have been made relating to enforcement provisions. However, existing Chapter 51, Section 51.4012 and Chapter 53, Subchapter D, of the Texas Occupations Code, allow a person to request a criminal history evaluation letter from the Department, prior to actually applying for a license. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter would like to know what the new square footage requirements will be for opening a school.

Department Response--Senate Bill 2065 and House Bill 2739 passed during the 85th Legislative Session removing the Commission's ability to establish building and facility standards that are not related to health and safety and removes square footage, chair, and sink requirements. The Department is in the process of developing procedures to implement all changes as a result of Senate Bill 2065 and HB2739. This comment has been forwarded to the appropriate division for review. The Department did not make any changes to the rules in response to this comment.

The Advisory Board on Barbering (Board) met on November 13, 2017, to discuss the proposed rules and the public comments received. The Board recommended adopting the rules without changes.

At its meeting on December 15, 2017, the Commission adopted the rules without changes.

16 TAC §§82.10, 82.20, 82.22, 82.23, 82.29, 82.40, 82.50, 82.52, 82.54, 82.70 - 82.72, 82.78, 82.80, 82.102, 82.108

The amendments are adopted under Texas Occupations Code, Chapter 51, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51, 1601, and 1603. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705331

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


16 TAC §82.53

The repeal is adopted under Texas Occupations Code, Chapters 51, 1601, and 1603, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 51, 1601, and 1603. No other statutes, articles, or codes are affected by the proposal.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705329

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


CHAPTER 83. COSMETOLOGISTS

The Texas Commission of Licensing and Regulation (Commission) adopts amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 83, §§83.10, 83.22 - 83.25, 83.29, 83.31, 83.40, 83.50 - 83.52, 83.54, 83.70 - 83.73, 83.78, 83.80, 83.102 and 83.105; and the repeal of current §83.53, regarding the Cosmetologists program, without changes to the proposed text as published in the October 6, 2017, issue of the Texas Register (42 TexReg 5319). The rules will not be republished.

The Texas Legislature enacted Senate Bill 1503, Senate Bill 2065, House Bill 2552, House Bill 2738, and House Bill 2739, 85th Legislature, Regular Session (2017). The adopted amendments and repeal include removing the requirement for a shampoo apprentice permit or shampoo specialty certificate; eliminating risk-based inspections; clarifying the definition of cosmetology to exclude threading; authorizing licensed schools to account for hours on the basis of clock or credit; allowing standards to be established for equivalency and conversion of clock to credit hours and vice versa; requiring continuing education hours to include information on human trafficking; removing square footage, chair, and sink requirements for cosmetology schools; and distinguishing between larger and specialty school requirements. The adopted amendments and repeal are necessary to implement the legislative changes.

The adopted amendments to §83.10 correct references, remove outdated language, and add "specialty shop" to be consistent with statutory language.

The adopted amendments to §83.22 remove redundant language for clarity.

The adopted amendments to §83.23 remove specific requirements for beauty culture schools.

The adopted amendments to §83.24 remove language regarding inactive license status to reflect current practice.

The adopted amendments to §83.25 correct a reference and add human trafficking to continuing education requirements.

The adopted amendments to §83.29 clarify the current requirements for establishment relocation and change of ownership.

The adopted amendments to §83.31 remove shampoo specialty certificates.

The adopted amendments to §83.40 reduce the maximum amount per claim per student to assist more students in the event of a school closure.

The adopted amendments to §83.50 remove a reference to risk-based inspections.

The adopted amendments to §83.51 update language to be consistent with statutory language.

The adopted amendments to §83.52 remove risk-based inspections from periodic inspections.

The adopted repeal of §83.53 removes risk-based inspections and classifications.

The adopted amendments to §83.54 allow individuals a full 10 days to complete the necessary modification after an inspection.

The adopted amendments to §83.70 update language to be consistent throughout chapter.

The adopted amendments to §83.71 remove shampoo permit requirements, add facility license posting requirements, and update language for consistency.

The adopted amendments to §83.72 require human trafficking information to be posted, remove outdated language, and establish equivalency and conversion standards between credit and clock hours.

The adopted amendments to §83.73 remove the shampoo apprentice permits and shampoo specialty certificates.

The adopted amendments to §83.78 update language for clarity.

The adopted amendments to §83.80 remove fees relating to shampoo certificates and risk-based inspections and renumber the section accordingly.

The adopted amendments to §83.102 streamline language for clarity and quick reference.

The adopted amendments to §83.105 remove threading language for clarity.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the October 6, 2017, issue of the Texas Register (42 TexReg 5319). The deadline for public comments was November 6, 2017. The Department received comments from 16 interested parties during the 30-day public comment period. The public comments received are summarized below.

Comment--One commenter raised several issues with the Cosmetology Program. First, the commenter would like to see an optional "refresher course" offered for licensed cosmetologists and those on inactive status. The commenter would like the board to issue a professional designation to all Texas cosmetologists who are licensed. The commenter states that a cosmetology operator should be allowed to instruct others using DVDs, tapes, or other mechanical means. The commenter believes that the fee for cosmetologists over the age of 60 should be lowered. Finally, the commenter states that cosmetologists should be given blanket authority to practice their profession wherever the need arises and/or exists.

Department Response--These comments do not address any current proposed rule change. The purpose of the proposed rules is to implement changes as a result of legislation passed during the 85th Texas Legislative Session. Cosmetologists are required to complete at least four hours of continuing education. Three of the hours must cover any topic under §83.120 (Technical Requirements--Curriculum). To be a Department-approved education provider, a course must be dedicated to instruction in one or more of the topics: (1) Sanitation required under the Act and this chapter; (2) the Act and this chapter, addressing topics other than Sanitation; and (3) the curriculum subjects listed in §83.120. At this time, education course providers have the ability to create "refresher courses" as the commenter suggests. A person may not perform or attempt to perform a practice of cosmetology unless the person holds a license or certification to perform that practice. There is no current prohibition on a licensed cosmetologist stating or designating that they are a "licensed cosmetologist." Section 1602.251 of Chapter 1602, Texas Occupations Code states that only licensed cosmetology instructors are allowed to instruct. Additionally, portions of cosmetology instruction can already be done through different types of mediums, including DVDs and tapes. Texas Occupations Code, Chapter 51, requires the Texas Commission of Licensing and Regulation to set fees in amounts reasonable and necessary to cover the costs of administering the program. Finally, where a licensed cosmetologist is able to provide services is established in law by Texas Occupations Code Chapter 1602, §1602.251(c) and would require a statutory change. The Department did not make any changes to the rules in response to these comments.

Comment--Two commenters would like to see the period for renewing an expired license extended from three years to five or eight years. The commenters would like to make the process of reapplying more convenient and states that it is too difficult to take the exam, both written and practical, again for licensing.

Department Response--This comment does not address any current proposed rule change. The law states that a person who has a license that has been expired for more than three years may not renew the license. Texas Occupations Code, Chapter 51, §51.401 requires a person whose license that has been expired for more than three years must obtain a new license and the requirements and procedures, including the examination requirements, for which obtaining an original license must be complied. The Department did not make any changes to the proposed rules in response to these comments.

Comment--The commenter believes that the clock to credit, credit to clock, hour conversion chosen was not designed to be used to measure learning and that the calculation may violate other parts of the rules. The commenter is concerned that the number chosen represents an outdated method that is no longer fully supported by its creators.

Department Response--The purpose of the proposed rule changes is to implement changes as a result of legislation passed during the 85th Texas Legislative Session. During the 85th Texas Legislative Session, the legislature passed Senate Bill 2065 and House Bill 2738 instructing the commission to establish standards for determining the equivalency and conversion of clock hours to credit hours and credit hours to clock and authorizing a school to account for any hours of instruction completed under Chapters 1601 or 1602 based on clock or credit. The Department established a clock to credit and credit to clock conversion formula with the help and advice of the Cosmetology Advisory Board Education Workgroup. Furthermore, the formula of 37.5 clock hours to 1 credit ensure schools comply with the federal student aid requirements. The Department did not make any changes to the rules in response to this comment.

Comment--Seven commenters do not agree with human trafficking information being included in their continuing education requirements.

Department Response--The purpose of the proposed rule changes is to implement changes as a result of legislation passed during the 85th Texas Legislative Session. House Bill 2552 requires the commission to adopt rules to require all cosmetology continuing education programs to include information on human trafficking. The proposed rule change implements the statutory requirements. The Department did not make any changes to the proposed rules in response to this comment.

Comment--One commenter raised concerns about the safety of their workplace.

Department Response--This comment does not address any current proposed rule. The comment has been referred to the appropriate division for review. The Department did not make any changes to the proposed rules in response to this comment.

Comment--One commenter raised several issues with the proposed rules. First, the commenter believes that the reference for §83.10(21) is incorrect. The commenter believes that the wording of §83.25(l) is confusing because it is drafted as two separate lines. Finally, the commenter raises concerns with the inspections process.

Department Response--The purpose of the proposed rules is to implement changes as a result of legislation passed during the 85th Texas Legislative Session. Senate Bill 1503 removed shampooing and conditioning from the definition of cosmetology and renumbered the section accordingly. The rule change reflects the statutory change and corrects the reference. The comments on the wording of §83.25 and concerning inspections were not about a currently proposed rule change and have been referred to the appropriate divisions for review. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter would like to know how to pay for their renewal.

Department Response--This comment does not address any current proposed rule change. However, it has been referred to the appropriate division for review and response. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter raises concern with salons employing unlicensed individuals using borrowed or rented licenses.

Department Response--This comment does not address any current proposed rule change. However, it has been referred to the appropriate division for review. The Department did not make any changes to the rules in response to this comment.

Comment--One commenter was unable to view the rule proposal because the link did not work.

Department Response--This comment does not address any current proposed rule change. The link to the proposed rules was resent to the commenter. The Department did not make any changes to the rules in response to this comment.

The Advisory Board on Cosmetology met on November 13, 2017, but lacked a quorum to recommend adopting the proposed rules. However, the Board members present agreed with the Department to send the rules to the Commission. At its meeting on December 15, 2017, the Commission adopted the proposed rules without changes.

16 TAC §§83.10, 83.22 - 83.25, 83.29, 83.31, 83.40, 83.50 - 83.52, 83.54, 83.70 - 83.73, 83.78, 83.80, 83.102, 83.105

The amendments are adopted under Texas Occupations Code, Chapter 51, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51, 1602, and 1603. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705313

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


16 TAC §83.53

The repeal is adopted under Texas Occupations Code, Chapters 51, 1602, and 1603, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51, 1602, and 1603. No other statutes, articles, or codes are affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705315

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 6, 2017

For further information, please call: (512) 463-8179


CHAPTER 85. VEHICLE STORAGE FACILITIES

The Texas Commission of Licensing and Regulation (Commission) adopts the repeal of current rules at rules at 16 Texas Administrative Code (TAC), §85.205 and §85.452, regarding the Vehicle Storage Facilities Program without changes to proposed text as published in the October 13, 2017, issue of the Texas Register (42 TexReg 5617). The rules will not be republished.

The Commission also adopts amendments to existing rules at 16 Texas Administrative Code (TAC), §§85.201, 85.204, 85.206, 85.450, 85.451, 85.650, 85.703, 85.704, 85.722, 85.800 and 85.1003, regarding the Vehicle Storage Facilities Program with changes to proposed text as published in the October 13, 2017 issue of the Texas Register (42 TexReg 5617). The rules will be republished.

The adopted amendments and repeals are necessary to implement Senate Bill 1501, Senate Bill 2065, House Bill 1247 and House Bill 2615, 85th Legislature, Regular Session (2017). Collectively these bills remove fencing requirements during the initial licensure application process; eliminate dual licensure and associated fees; eliminate periodic and risk-based inspections and associated fees; relax certain signage requirements; as well as clarify required notices and databases; and update the advisory board composition.

The adopted amendments to §85.201 removes fencing requirements during the initial licensure application process.

The adopted amendments to §85.204 eliminate dual licensure and allow a person to work at a Vehicle Storage Facility if they hold a license under Chapter 85 or Chapter 86.

The adopted repeal of §85.205 eliminates dual licensure requirements.

The adopted amendments to §85.206 removes references to dual licensure.

The adopted amendments to §85.450 removes risk based inspections from general inspection rules.

The adopted amendments to §85.451 removes periodic inspections.

The adopted repeal of §85.452 removes language relating to risk based inspections.

The adopted amendments to §85.650 changes the composition of the advisory board.

The adopted amendments to §85.703 relates to notice requirements and databases that must be used to find vehicle owners and lien holders.

The adopted amendments to §85.704 relates to the second notice requirements.

The adopted amendments to §85.722 cleans up the language to bring it in line with other rules.

The adopted amendments to §85.800 eliminates fees related to dual licensure and risk-based inspections.

The adopted amendments to §85.1003 relaxes some signage requirements.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the October 13, 2017 issue of the Texas Register (42 TexReg 5617). The Department received a total of 11 comments from the public regarding this program and the proposed amendments. All comments are summarized below.

Comment: The Department received one general comment related to signage. The commenter asked if the rules could reflect an exemption on signage requirements for repo companies who hold a VSF license, but only use it occasionally to obtain storage liens. There was no reference to a specific rule.

Department Response--The Department maintains that anyone seeking and obtaining a VSF license must adhere to all licensing requirements, including those relating to signage.

The Department did not make any changes to the proposed rules based on this public comment.

Comment: The Department received one comment related to §85.704 which alleges a conflict between the proposed rule and the Texas Department of Motor Vehicle (DMV) notice requirements for disposition of an abandoned vehicle.

Department Response--The Department maintains that there is no conflict between this proposed rule and the Texas DMV notice requirements. The rule relating to disposition of an abandoned nuisance vehicle is found in §85.724, not proposed §85.704. General Counsel staff forwarded the comment to Compliance staff and requested contact with the commenter to clarify the confusion.

The Department did not make any changes to the proposed rules based on this public comment.

Comment: The Department received two comments relating to §85.703(e)(2). Both assert that the proposed rule would cause undue financial burden on VSF's because they would be unable to charge storage for the first 24 hours that a vehicle is on a storage lot.

Department Response--The Department believes that the commenters are misinterpreting the proposed rule.

The rule reflects a change in statute stating that if a VSF does not timely send its first notice, it cannot charge a fee until 24 hours after it has sent the required notice. If a VSF timely sends its notice as required by statute and the proposed rule, a VSF may charge the daily storage fee permissible under Tex. Occ. Code §2303.155(b)(3) beginning when the vehicle enters its lot.

The change in statute and in the proposed rule only penalizes VSF's that do not timely send notice as required by §85.703 (b)(1) and (b)(2).

The Department did not make any changes to the proposed rules based on this public comment.

Comment: The Department received one comment related to §85.703(c). The commenter disagrees with the proposed removal of this rule section. The section contains language relating to an affirmative defense for license holders who are cited and prosecuted for failing to timely send first notice to vehicle owners or lien holders.

Department Response--The availability of the affirmative defense still exists in statute. It is unnecessary, and quite unusual, to state an affirmative defense in a companion rule. The proposed removal of this section does not affect licensees or any defenses to prosecution which are available to them in statute.

The Department did not make any changes to the proposed rules based on this public comment.

Comment: The Department received one comment related to §85.703(f). The commenter states that the language relating to a return receipt requested for certified and electronic certified mail is incorrect.

Department Response--The commenter is correct and the Department acknowledges a drafting error.

The Department corrected the drafting error so that the proposed rule now mirrors the statutory language.

Comment: The Department received one general comment relating to §85.703. The comment asserts that there is an inconsistency in notice requirements between vehicle and lien holder information obtained directly from the state and information obtained from a third-party provider.

The commenter states that if there is a change in owner between the time that a first notice is issued and the time that a title application is submitted by a VSF, the VSF cannot obtain the title without starting the notice process over if it originally utilized a third-party provider to obtain locating information for the first notice.

Department Response--There is nothing in statute or in the proposed Department rule that requires a VSF owner to start the notice process over if it uses a third-party provider to obtain locating information for the vehicle or lien holder and there is a subsequent sale of the vehicle after that information is obtained, but before the VSF secures title.

If the DMV or local governments require a VSF to start the notice process over under this circumstance, that is an issue for those agencies to address. The Department's proposed rule does not contain such a provision.

The Department did not make any changes to the proposed rule based on this public comment. It will, however, address the issue in an FAQ.

Comment: The Department received one comment related to §85.204(b). However, the comment was actually a question relating to service workers that a VSF might periodically hire to perform landscaping work for their business.

Department Response--This question does not pertain to the proposed rule. General Counsel staff forwarded the question to Compliance staff for further handling.

The Department did not make any changes to the proposed rule based on this public comment.

Comment: The Department received one comment related to §85.450(a). The commenter suggested adding language to the first sentence of the rule so that it reads: "A towing company shall be inspected periodically to warn a towing company of a violation if found or as a result of a complaint." (italicized words represent the suggested addition).

Department Response--The rule at §85.450(a) relates to inspections. The Department conducts inspections at towing companies to provide notification of any violations. Accordingly, the Department determined that the suggested language is redundant and does not substantively add to, or clarify, any portion of the rule.

The Department did not make any changes to the proposed rules based on this public comment.

Comment: The Department received one comment related to §85.650 (a)(7) with regards to the change in reference to a board member as a "representative" instead of an "owner". The commenter suggests that the board members be referred to as "representative or owner".

Department Response--The Department's proposed amendment updates the rule to mirror language used in the statutory change to Tex. Occ. Code 2308.051(a). The updated language in rule is not discretionary and must replicate the language in statute. In statute, certain board members are now referred to as "representative" in lieu of "owner".

Comment: The Department received one comment related to §85.722. The comment was a question about the amount of the fee authorized for this section.

Department Response--This question does not pertain to the proposed rule. General Counsel staff forwarded the question to Compliance staff for further handling.

The Department did not make any changes to the proposed rule based on this public comment.

16 TAC §§85.201, 85.204, 85.206, 85.450, 85.451, 85.650, 85.703, 85.704, 85.722, 85.800, 85.1003

The amendments are adopted under Texas Occupations Code, Chapters 51 and 2303, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51 and 2303. No other statutes, articles, or codes are affected by the adoption.

§85.201.License Requirements--Vehicle Storage Facility License.

To be eligible for a VSF license, an applicant must:

(1) submit a completed application on a department approved form;

(2) pay the fee required under §85.800;

(3) provide proof of insurance required under §85.400;

(4) successfully pass a criminal background check;

(5) provide the name, and address of each partner if the applicant is a partnership;

(6) provide the name, and address of each corporate officer, including the president, secretary, and treasurer, if the applicant is a corporation;

(7) provide the name, and address of each owner of the VSF and the percentage of ownership interest each holds in the facility;

(8) provide the name, and address of the operator or manager of the VSF if it is not operated or managed by one of the owners;

(9) provide the facility's physical address, mailing address, and telephone number;

(10) state the VSF's storage capacity; and

(11) include a statement indicating whether the facility has an all weather surface, signs posted in the proper locations, and lighting, as required by these rules; and

(12) adopt the model drug testing policy provided in these rules or file an alternate drug testing policy for approval under these rules.

§85.204.License Requirements-Vehicle Storage Facility Employee License.

(a) To be eligible for a VSF employee license, an applicant must:

(1) submit a completed application on a department-approved form;

(2) pay the fee required under §85.800;

(3) successfully pass a criminal background check; and

(4) if the applicant for renewal has within the preceding 12-month period tested positive for drugs under §85.725, the applicant must submit a negative drug test to the department.

(b) A person may not work at a VSF unless the individual holds:

(1) a license issued under this chapter;

(2) an incident management towing operator's license under Section 2308.153;

(3) a private property towing operator's license under Section 2308.154; or

(4) a consent towing operator's license under Section 2308.155.

(c) A VSF may not employ a person to work at the VSF unless the person holds a license issued under this chapter or under Chapter 86.

(d) For purposes of this chapter, persons operating or managing a VSF as a sole proprietor or other unincorporated business organization are employees of the VSF and required to obtain a VSF employee license or otherwise be licensed under this chapter or under Chapter 86.

§85.206.License Requirements--Vehicle Storage Facility Employee License Renewal.

(a) To renew a VSF employee license an applicant must:

(1) submit a completed application on a department-approved form;

(2) pay the applicable fee required under §85.800;

(3) successfully pass a criminal background check; and

(4) if the applicant for renewal has within the preceding 12-month period tested positive for drugs under §85.725, the applicant must submit a negative drug test to the department.

(b) To renew and maintain continuous licensure, the renewal requirements under this section must be completed prior to the expiration of the license. A late renewal means the licensee will have an unlicensed period from the expiration date of the expired license to the issuance date of the renewed license. During the unlicensed period, a person may not perform any duties of a VSF employee that requires a license under this chapter.

(c) Non-receipt of a license renewal notice from the department does not exempt a person from any requirements of this chapter.

§85.450.Inspections--General.

(a) All VSFs shall be inspected periodically or as a result of a complaint. These inspections will be performed to determine compliance with the requirements of the Act and these rules. In addition, the department may make information available to VSF owners and managers on bst practices for risk-reduction techniques.

(b) Inspections shall be performed during the normal operating hours of the VSF. The department may conduct inspections under the Act and these rules with or without advance notice.

(c) The department inspector will contact the VSF owner, manager, or representative upon arrival at the VSF, and before proceeding with the inspection.

(d) The VSF owner, manager, or representative shall cooperate with the inspector in the performance of the inspection.

§85.451.Periodic Inspections.

(a) Each VSF shall be inspected at least once every two years.

(b) The VSF owner, manager, or representative must, upon request, make available to the inspector all records, notices and other documents required by these rules.

(c) On completion of the inspection, the VSF shall be advised in writing of the inspection results.

(d) The inspection report will identify violations that must be corrected by the licensee. The report will also indicate the corrective actions required to address the violations, in accordance with §85.453. Additionally, the department may assess administrative penalties and/or administrative sanctions for violations.

§85.650.Towing and Storage Advisory Board.

(a) The advisory board consists of the nine members appointed by the chairman of the commission with the approval of the commission. The nine members include:

(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 of a vehicle storage facility located in a county with a population of less than one-million;

(4) one representative of a vehicle storage facility located in a county with a population of one-million or more;

(5) one peace officer from a county with a population of less than one-million;

(6) one peace officer from a county with a population of one-million or more;

(7) one parking facility representative;

(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 automobile insurance in this state; and

(9) one person who operates both a towing company and a vehicle storage facility.

(b) The advisory board shall include representation for each classification of towing.

(c) Advisory board members serve terms of six years, with the terms of two or three members, expiring on February 1 of each odd-numbered year.

(1) A member may not serve more than two full consecutive terms.

(2) If a vacancy occurs during a term, the chairman of the commission will appoint a replacement who meets the qualifications of the open position to serve for the balance of the term.

(d) The chairman of the commission appoints one of the advisory board members to serve as the presiding officer of the advisory board for one year. The presiding officer of the advisory board may vote on any matter before the advisory board.

(e) Advisory board members do not receive compensation. They are, subject to the General Appropriations Act, reimbursed for actual and necessary expenses incurred in performing the duties of the advisory board.

(f) The advisory board meets twice yearly and may meet at other times at the call of the chairman of the commission or the executive director.

(g) The advisory board provides advice and recommendations to the department on technical matters relevant to the administration and enforcement of this chapter, including examination content, licensing standards, continuing education requirements, and maximum amounts that may be charged for fees related to private property tows.

§85.703.Responsibilities of Licensee--Notice to Vehicle Owner or Lienholder.

(a) If a vehicle is removed by the vehicle owner or authorized representative within 24 hours after the VSF receives the vehicle, notification as described in subsections (b) - (j) does not apply.

(b) The registered owners and lien holders of a vehicle accepted at a VSF shall be notified in the following manner.

(1) If a vehicle is registered in Texas, the VSF shall notify the vehicle's registered owner and primary lien holder by certified mail, return receipt requested, registered, or electronic certified mail, within five days, but no sooner than within 24 hours of receipt of the vehicle.

(2) If a vehicle is not registered in Texas, the VSF shall notify the vehicle's registered owner and all recorded lien holders within 14 days, but no sooner than within 24 hours of receipt of the vehicle.

(c) The operator of a VSF shall send the notice required by subsections (b)(1) and (b)(2) to an address obtained by mail or electronically from:

(1) The governmental entity responsible for maintaining the motor vehicle title and registration database for the state in which the vehicle is registered; or

(2) A private entity authorized by the governmental entity to obtain title, registration, and lienholder information using a single vehicle identification number search obtained through a secure access portal to the government entity's motor vehicle records.

(d) Notification has occurred when the United States Postal Service places its postmark and is timely if:

(1) the postmark indicates that the notice was mailed within the period described by subsection (b); or

(2) the notice was published as provided by subsection (f).

(e) If a VSF sends a notice required under this section after the time mandated by subsections (b)(1) or (b)(2):

(1) The deadline for sending any subsequent notice is based on the date that notice was actually sent to the vehicle owner and any lien holders;

(2) A VSF may not charge the daily storage fee permissible under Tex. Occ. Code §2303.155(b)(3) until 24 hours after it has sent the notice required under this section.

(f) Notice required under this section may be completed by publication in a newspaper of general circulation in the county in which the vehicle is stored if:

(1) the vehicle is registered in another state;

(2) the VSF submits to the governmental entity that is responsible for maintaining the motor vehicle title and registration database for the state in which the vehicle is registered, or to a private entity that is authorized by the governmental entity to access title, registration, or lienholder information, a written or electronic request for information relating to the identity of the registered owner and any lienholder of record.

(3) If mailed, such requests shall be correctly addressed, with sufficient postage, and sent by certified mail, return receipt requested or electronic certified mail, to the governmental entity with which the vehicle is registered requesting information relating to the identity of the last known registered owner and any lienholder of record.

(4) the identity of the registered owner cannot be determined;

(5) the registration does not contain an address for the registered owner; or

(6) the operator of the storage facility cannot reasonably determine the identity and address of each lienholder.

(g) Notice by publication is not required if each notice sent in accordance with this Section is returned because:

(1) the notice was unclaimed or refused; or

(2) the person to whom the notice was sent moved without leaving a forwarding address.

(h) Only one notice is required to be published for an abandoned nuisance vehicle.

(i) All mailed notifications must be correctly addressed; mailed with sufficient postage; and sent by certified mail, return receipt requested, registered, or electronic certified mail.

(1) All mailed notifications shall state:

(A) the full licensed name of the VSF where the motor vehicle is located, its street address and telephone number, and the hours the vehicle can be released to the vehicle owner;

(B) the daily storage rate, the type and amount of all other charges assessed, and the statement, "Total storage charges cannot be computed until vehicle is claimed. The storage charge will accrue daily until vehicle is released";

(C) the first date for which a storage fee is assessed;

(D) the date the vehicle will be transferred from the VSF and the address to which the vehicle will be transferred if the operator will be transferring a vehicle to a second lot because the vehicle has not been claimed within a certain time;

(E) the date the vehicle was accepted for storage and from where, when, and by whom the vehicle was towed;

(F) the VSF license number preceded by the words "Texas Department of Licensing and Regulation Vehicle Storage Facility License Number" or "TDLR VSF Lic. No.";

(G) a notice of the towed vehicle owner's right under the Texas Occupations Code, Chapter 2308, to challenge the legality of the tow involved; and

(H) the name, mailing address, and toll-free telephone number of the department for purposes of directing questions or complaints.

(2) All published notifications shall state:

(A) the full name, street address, telephone number, and VSF license number, and the Department's internet address;

(B) a description of the vehicle; and

(C) the total amount of charges assessed against the vehicle.

(3) Notices published in a newspaper may contain information for more than one towed vehicle.

(j) If authorized, a notification fee may not be charged unless actual notice has been given as required under this section.

§85.704.Responsibilities of licensee--Second Notice; Consent to Sale.

(a) If a vehicle is not claimed by a person permitted to claim the vehicle before the 10th day after the date notice is mailed or published under §85.703, the operator of the VSF shall consider the vehicle to be abandoned and, if required by the law enforcement agency with jurisdiction where the vehicle is located, must report the abandonment to the law enforcement agency. If the law enforcement agency notifies the VSF that the agency will send notices and dispose of the abandoned vehicle under Subchapter B, Chapter 683, Transportation Code, the VSF shall pay the fee required under Section 683.031, Transportation Code.

(b) If the vehicle is not claimed, the second notice shall be sent no earlier than the 15th day, and no later than the 21st day, after the date the first notice is mailed or published under §85.703. The operator of a VSF shall send a second notice to the registered owner and each recorded lienholder of the vehicle if the facility:

(1) was not required to make a report under Subsection (a); or

(2) has made a required report under Subsection (a) and the law enforcement agency:

(A) has notified the facility that the law enforcement agency will take custody of the vehicle;

(B) has not taken custody of the vehicle; or

(C) has not responded to the report.

(c) If the VSF sends a second notice after the 21st day on which the first notice was mailed or published, it may not charge a daily storage fee authorized under §85.722(d) until 24 hours after the second notice is mailed or published.

(d) Notice under this section must include:

(1) the information listed in §85.703(h)(1)(A) - (H);

(2) a statement of the right of the facility to dispose of the vehicle under subsections (a) and (b);

(3) a statement that the failure of the owner or lienholder to claim the vehicle and personal property before the 30th day after the date the notice if provided is:

(A) a waiver by that person of all right, title, or interest in the vehicle and personal property; and

(B) a consent to the sale of the vehicle at a public sale.

(e) Notwithstanding subsection (a), if publication is required for notice under this section, the notice must include:

(1) the information listed in §85.703(i)(2); and

(2) a statement that the failure of the owner or lienholder to claim the vehicle before the date of the sale is:

(A) a waiver of all right, title, and interest in the vehicle;

(B) and a consent to the sale of the vehicle at a public sale.

(f) The operator shall pay any excess proceeds to the person entitled to those proceeds.

§85.722.Responsibilities of Licensee--Storage Fees and Other Charges.

(a) For the purposes of this section, "VSF" includes a garage, parking lot, or other facility that is:

(1) owned by a governmental entity; and

(2) used to store or park at least 10 vehicles each year.

(b) The fees outlined in this section have precedence over any conflicting municipal ordinance or charter provision.

(c) Notification fee.

(1) A VSF may not charge a vehicle owner or authorized representative more than $50 for notification under these rules. If a notification must be published, and the actual cost of publication exceeds 50% of the notification fee, the VSF may recover the additional amount of the cost of publication. The publication fee is in addition to the notification fee.

(2) If a vehicle is removed by the vehicle owner or authorized representative within 24 hours after the date the VSF receives the vehicle, notification is not required by these rules.

(3) If a vehicle is removed by the vehicle owner or authorized representative before notification is sent or within 24 hours from the time VSF receives the vehicle, the VSF may not charge a notification fee to the vehicle owner.

(d) Daily storage fee. A VSF may not charge less than $5.00 or more than $20 for each day or part of a day for storage of a vehicle that is 25 feet or less in length. A VSF shall charge a fee of $35 for each day or part of a day for storage of a vehicle that exceeds 25 feet in length.

(1) A daily storage fee may be charged for any part of the day, except that a daily storage fee may not be charged for more than one day if the vehicle remains at the VSF less than 12 hours. In this paragraph a day is considered to begin and end at midnight.

(2) A VSF that has accepted into storage a vehicle registered in this state shall not charge for more than five days of storage fees until a notice, as prescribed in §85.703 of these rules, is mailed or published.

(3) A VSF that has accepted into storage a vehicle not registered in Texas shall not charge for more than five days of storage before the date the request for owner information is sent to the appropriate governmental entity or to the private entity authorized by that governmental entity to obtain title, registration, and lienholder information using a single vehicle identification number inquiry.

(4) A VSF shall charge a daily storage fee after notice, as prescribed in §85.703, is mailed or published for each day or portion of a day the vehicle is in storage until the vehicle is removed and all accrued charges are paid.

(e) Impoundment fee. A VSF may charge a vehicle owner or authorized representative an impoundment fee not to exceed $20. If the VSF charges a fee for impoundment, the written bill for services must specify the exact services performed for that fee and the dates those services were performed.

(f) Governmental or law enforcement fees. A VSF may collect from a vehicle owner or authorized representative any fee that must be paid to a law enforcement agency, the agency's authorized agent, or a governmental entity.

(g) Environmental hazard fee. A VSF may collect from a vehicle owner or authorized representative a fee in an amount set by the commission for the remediation, recovery, or capture of an environmental or biological hazard.

(h) Additional fees. A VSF may not charge additional fees related to the storage of a vehicle other than fees authorized by these rules or a nonconsent-towing fee authorized by Texas Occupations Code, §2308.2065.

§85.800.Fees.

(a) Application fees.

(1) Vehicle Storage Facility License

(A) Original Application--$250

(B) Renewal--$250

(2) Vehicle Storage Facility Employee License

(A) Original Application--$75

(B) Renewal--$75

(b) Revised/Duplicate License/Certificate/Permit/Registration--$25

(c) Late renewals fees for licenses under this chapter are provided under §60.83 of this title (relating to Late Renewal Fees).

(d) All fees are nonrefundable.

§85.1003.Technical Requirements--Storage Lot Signs.

(a) Facility information. All VSFs shall have a clearly visible and readable sign located at the main entrance. The sign shall have letters at least 2 inches in height, with a contrasting background, be readable at 10 feet, and contain the following information:

(1) the registered name of the storage lot, as it appears on the VSF license;

(2) street address;

(3) the telephone number for the owner to contact in order to obtain release of the vehicle;

(4) the facility's hours, within one hour of which vehicles will be released to vehicle owners; and

(5) the storage lot's state license number preceded by the phrase "VSF License Number."

(b) All VSFs shall have a sign in view of the person who claims the vehicle setting out the charge for storage and all other fees, which may be charged by the storage lot, including notification and impoundment fees. The sign may be affixed to the payment window and shall include all forms of payments the VSF accepts for any charge associated with delivery or storage of a vehicle. If the sign is affixed to the payment window, it must be located so it is clearly visible to a vehicle owner at the place of payment and meet the following font sizes and fonts to produce text not smaller than 24 points Helvetica or Arial Black for headers and 14 points Helvetica or Arial Condensed for all body text.

(c) Nonconsent towing fees schedule. All VSFs shall place a clearly visible and readable sign where payment to the VSF is made which states:

(1) "Nonconsent tow fees schedules available on request." The VSF shall provide a copy of a nonconsent towing fees schedule on request; and

(2) The nonconsent towing fees provided for viewing and to the vehicle owner or representative must match the nonconsent towing fees authorized by this chapter or Texas Occupations Code §2308.2065.

(d) Instruments accepted for release of vehicle. VSFs shall have a sign describing the documents that may be presented by the vehicle owner or his/her authorized representative to obtain possession of the vehicle. This sign shall list all instruments as described in §85.710(a)(3)(A) - (I), and shall also state: "Affidavit of Right of Possession Furnished Upon Request." The sign may be affixed to the payment window.

(e) A VSF must conspicuously post a sign that states: "This vehicle storage facility must accept payment by cash, debit cards and credit cards for any fee or charge associated with delivery or storage of a vehicle."

(f) Combination signs. A VSF may combine the signs described in subsections (b), (c), (d), and (e), if the combination sign meets the requirements of each of the separate signs.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705322

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 13, 2017

For further information, please call: (512) 463-8179


16 TAC §85.205, §85.452

The repeals are adopted under Texas Occupations Code, Chapters 51 and 2308, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51 and 2308. No other statutes, articles, or codes are affected by the proposal.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705321

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 13, 2017

For further information, please call: (512) 463-8179


CHAPTER 86. VEHICLE TOWING AND BOOTING

The Texas Commission of Licensing and Regulation (Commission) adopts the repeal of current rules at rules at 16 Texas Administrative Code (TAC), Chapter 86, §86.212 and §86.452, regarding the Vehicle Towing and Booting program without changes to proposed text as published in the October 13, 2017, issue of the Texas Register (42 TexReg 5622). The rules will not be republished.

The Commission also adopts amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 86, §§86.10, 86.450, 86.451, 86.650, and 86.800, with changes to the proposed text as published October 13, 2017, issue of the Texas Register (42 TexReg 5622). The rules will be republished.

The repeal of existing rules is necessary to implement Senate Bill 1501, Senate Bill 2065, and House Bill 2615 during the 85th Legislature, Regular Session (2017). These bills eliminated dual licensure, the towing operator training licenses as well as the associated fees, and risk-based inspections. The repeals are necessary to implement the legislative changes mandated by these statutes.

The amendments to existing rules are necessary is necessary to implement Senate Bill 1501, Senate Bill 2065, and House Bill 2615 during the 85th Legislature, Regular Session (2017). These bills establish guidelines for nonconsent tows in an apartment complex and to update the advisory board composition. The amendments are necessary to implement the legislative changes mandated by these statutes.

The adopted amendments to §86.10 updates the name of the advisory board, removes the definition of Property Owner's Association and renumbers the section accordingly.

The adopted repeal of §86.212 eliminates dual licensure and its associated requirements.

The adopted amendments to §86.450 removes references to the risk-based inspection schedule.

The adopted amendments to §86.451 removes reference to risk-based inspections.

The adopted repeal of §86.452 eliminates risk-based inspections.

The adopted amendments to §86.650 updates the composition of the advisory board.

The adopted amendments to §86.800 removes dual licensure.

The Department also withdraws §86.213 and §86.705.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the October 13, 2017, issue of the Texas Register (42 TexReg 5622). The Department received a total of 16 comments from the public regarding this program and the proposed amendments. All comments are summarized below.

Comment--The Department received two comments from the same individual inquiring about his license.

Department Response--These comments do not pertain to the proposed rules. General Counsel staff forwarded the inquiries to Licensing for handling.

The Department did not make any changes to the proposed rules based on these public comments.

Comment--The Department received one comment from a consumer complaining about an alleged wrongful tow.

Department Response--The comment does not pertain to the proposed rules. General Counsel staff forwarded the complaint to Enforcement for handling.

The Department did not make any changes to the proposed rules based on this public comment.

Comment--The Department received one comment expressing agreement with all proposed changes.

Department Response--The Department did not make any changes to the proposed rules based on this public comment.

Comment--The Department received one comment related to §86.450(a). The commenter suggested adding language to the first sentence of the rule so that it reads: "A towing company shall be inspected periodically to warn a towing company of a violation if found or as a result of a complaint. (italicized words represent the suggested addition).

Department Response--The rule at §86.450(a) relates to inspections. TDLR conducts inspections at towing companies to provide notification of any violations. Accordingly, the Department determined that the suggested language is redundant and does not substantively add to, or clarify, any portion of the rule.

The Department did not make any changes to the proposed rules based on this public comment.

Comment--The Department received one comment related to §86.650(a) with three parts.

Two parts of the comment concern §86.650(a)(1)-(4) and (9) with regards to the change in reference to certain board members as a "representative" instead of an "owner". The commenter suggested that the board members referenced in (a)(1)-(4) and (9) be referred to as "representative or owner".

The third part of the comment asks why the Department added a member of the insurance industry to the Advisory Board.

Department Response--The Department's proposed amendment updates the rule to mirror language used in the statutory change to Tex. Occ. Code §2308.051(a). The updated language in rule is not discretionary and must replicate the language in statute. In statute, certain board members are now referred to as "representative" in lieu of "owner".

The addition of an insurance industry professional to the Advisory Board was made by the State Legislature in SB 1501 and not by the Department. This addition is also not discretionary.

The Department did not make any changes to the proposed rules based on this public comment.

Comment--The Department received nine comments related to §86.705. Section 86.705 responds to a statutory change to add Tex. Occ. Code §2308.205(a)(1) - (2)(A) - (B) and (a-1)(1) - (3) that mandates the Commission to adopt rules authorizing a tow company that makes a nonconsent tow from a parking facility to tow the vehicle to another location on the same parking facility under the direction of a parking facility owner, authorized agent, or peace officer. The Texas Apartment Association commented specifically on §86.705(o).

The comments are as follows:

i) One comment relating to §86.705(n) with three subparts asking:

a) whether a tow truck driver is obligated to comply with a consumer request to move a vehicle to a location different than the one to which a driver might otherwise be required to take it to;

b) how charges for towing a vehicle upon customer request to a location different than the one to which the driver might otherwise be required to take it to would be assessed; and

c) how tow tickets would need to be written.

ii) Two comments related to §86.705 (o)(1) - (2) and its proposed rule restriction on non-consent tows contemplated by the statute to apartment complexes that are moving vehicles from one location on their parking facility to another in furtherance of repairs or renovation. The comments collectively expressed that the statute does not contain such restrictions and should not be limited to solely those circumstances.

iii) Two comments related to §86.705 (o)(3) and its proposed obligation on an apartment complex to provide 10 days notice of its intent to move vehicles in its parking facility. The commenters stated that a 10-day notice is too long and unreasonable.

iv) One comment related to §86.705(o)(3) stating that there should be a clarification that initial notice is sufficient even if the event that necessitated the notification is delayed.

v) one comment related to §86.705(o)(2) expressing that a clarification should be added to state that "written notice" includes electronic notice if such a notice provision is present in a lease.

vi) one comment that §86.705 should allow parking facilities to post signs like those allowed for the relocation of vehicles at universities.

vii) One comment related to §86.705(o)(3)(E) to allow a parking facility that does not know the exact location to which vehicles will be moved to tell residents how they will be informed of the exact location at a later date.

Department Response--The Department reviewed the new statutory provision of §2308(a)(1)-(2) and (a-1)(1) - (3) and determined that there is merit to the comments relating to the restrictive nature of the proposed rules. The Department acknowledges that the applicable statute is broad in nature and does not limit its application to apartment complexes moving cars from one location on its parking facility to another in furtherance of repairs or renovations.

The Department also finds merit to the comments relating to notice and believes that further discussion regarding the timing of notice, the form of notice, the ability to use freestanding signs to provide notice, and the need for flexibility regarding notification of specific re-locations is warranted.

Accordingly, the Department recommended to the Advisory Board during its November 16, 2017, meeting that it withdraw the entire proposed rule additions of §86.705(o)(1) - (8) and form a workgroup in order to facilitate a re-drafting of the rule and its subparts. The Department believes that withdrawal is warranted and required in order to draft rule provisions that more closely reflect the broad nature of the statutory change and to accommodate industry input.

Comment--The Department received one comment related to §86.800(4) asking how to get a refund on dual-license fees.

Department Response--This question does not pertain to the proposed rule.

The Department did not make any changes to the proposed rule based on this public comment.

The Towing and Storage Advisory Board (Board) met on November 16, 2017, to discuss proposed amendments and the public comments received. The board recommended adopting the proposed repeal and amendments with changes. At its meeting on December 15, 2017, the Commission adopted the proposed repeal without changes and adopted the proposed amendments with changes as recommended by the Board.

16 TAC §§86.10, 86.450, 86.451, 86.650, 86.800

The amendments are adopted under Texas Occupations Code, Chapters 51 and 2308, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51 and 2308. No other statutes articles or codes are affected by the proposal.

§86.10.Definitions.

The following words and terms, when used in this chapter will have the following meanings, unless the context clearly shows otherwise:

(1) Advisory board--The Towing and Storage Advisory Board.

(2) Applicant--The person or entity submitting an application for a permit or license issued by the department.

(3) Certificate of insurance--A certificate prescribed by and filed with the department in which an insurance carrier or surety company, approved in this state, warrants that a towing company for whom the certificate is filed has the minimum coverage as required by §86.400.

(4) Commission--The Texas Commission of Licensing and Regulation.

(5) Consent tow--Any tow of a motor vehicle in which the tow truck is summoned by the owner or operator of the vehicle or by a person who has possession, custody, or control of the vehicle. The term does not include an incident management tow or a private property tow.

(6) Conspicuous--Written in a size, color, and contrast so as to be readily noticed and understood.

(7) Contested case--A proceeding, including a licensing proceeding, in which the legal rights, duties, or privileges of a party are to be determined by a state agency after an opportunity for adjudicative hearing.

(8) Department--The Texas Department of Licensing and Regulation.

(9) Driver's License--Has the meaning assigned by 521.001, Transportation Code.

(10) Incident--an unplanned randomly occurring traffic event that adversely affects normal traffic operations.

(11) Incident management tow--Any tow of a vehicle in which the tow truck is summoned to the scene of a traffic accident or to an incident, including the removal of a vehicle, commercial cargo, and commercial debris from an accident or incident scene.

(12) License holder or Licensee--The person to which the department issued a license.

(13) Nonconsent tow--Any tow of a motor vehicle that is not a consent tow, including:

(A) an incident management tow; and

(B) a private property tow.

(14) Parking facility--Public or private property used, wholly or partly, for restricted or paid vehicle parking. The term includes:

(A) a restricted space on a portion of an otherwise unrestricted parking facility; and

(B) a commercial parking lot, a parking garage, and a parking area serving or adjacent to a business, church, school, home, apartment complex, property governed by a property owners' association, or government-owned property leased to a private person, including:

(i) a portion of the right-of-way of a public roadway that is leased by a governmental entity to the parking facility owner; and

(ii) the area between the facility's property line abutting a county or municipal public roadway and the center line of the roadway's drainage way or the curb of the roadway, whichever is farther from the facility's property line.

(15) Parking facility authorized agent--An employee or agent of a parking facility owner with the authority to:

(A) authorize the removal of a vehicle from the parking facility on behalf of the parking facility owner; and

(B) accept service on behalf of the parking facility owner of a notice of hearing requested under this chapter.

(16) Parking facility owner--

(A) an individual, corporation, partnership, limited partnership, limited liability company, association, trust, or other legal entity owning or operating a parking facility;

(B) a property owners' association having control under a dedicatory instrument, as that term is defined in §202.001, Property Code, over assigned or unassigned parking areas; or

(C) a property owner having an exclusive right under a dedicatory instrument, as that term is defined in §202.001, Property Code, to use a parking space.

(17) Permit holder--The person to which the department issued a permit.

(18) Private property tow--Any tow of a vehicle authorized by a parking facility owner without the consent of the owner or operator of the vehicle.

(19) Public roadway--A public street, alley, road, right-of-way, or other public way, including paved and unpaved portions of the right-of-way.

(20) Tow truck--A motor vehicle, including a wrecker, equipped with a mechanical device used to tow, winch, or otherwise move another motor vehicle. The term does not include:

(A) a motor vehicle owned and operated by a governmental entity, including a public school district;

(B) a motor vehicle towing:

(i) a race car;

(ii) a motor vehicle for exhibition; or

(iii) an antique motor vehicle;

(C) a recreational vehicle towing another vehicle;

(D) a motor vehicle used in combination with a tow bar, tow dolly, or other mechanical device if the vehicle is not operated in the furtherance of a commercial enterprise;

(E) a motor vehicle that is controlled or operated by a farmer or rancher and used for towing a farm vehicle; or

(F) a motor vehicle that:

(i) is owned or operated by an entity the primary business of which is the rental of motor vehicles; and

(ii) only tows vehicles rented by the entity.

(21) Towing company--An individual, association, corporation, or other legal entity that controls, operates, or directs the operation of one or more tow trucks over a public roadway in this state but does not include a political subdivision of the state.

(22) Towing operator--The person to which the department issued a towing operator license.

(23) Unauthorized vehicle--A vehicle parked, stored, or located on a parking facility without the consent of the parking facility owner.

(24) Vehicle--A device in, on, or by which a person or property may be transported on a public roadway. The term includes an operable or inoperable automobile, truck, motorcycle, recreational vehicle, or trailer but does not include a device moved by human power or used exclusively on a stationary rail or track.

(25) Vehicle owner--A person:

(A)named as the purchaser or transferee in the certifi-cate of title issued for the vehicle under Chapter 501, Transportation Code;

(B) in whose name the vehicle is registered under Chap-ter 502, Transportation Code, or a member of the person's immediate family;

(C) who holds the vehicle through a lease agreement;

(D) who is an unrecorded lienholder entitled to possess the vehicle under the terms of a chattel mortgage; or

(E) who is a lienholder holding an affidavit of reposses-sion and entitled to repossess the vehicle.

(26) Vehicle storage facility--A vehicle storage facility, as defined by Texas Occupations Code, §2303.002 that is operated by a person who holds a license issued under Texas Occupations Code, Chapter 2303 to operate the facility.

§86.450.Inspections--General.

(a) A towing company shall be inspected periodically or as a result of a complaint. These inspections are performed to determine compliance with the requirements of the Act and these rules. In addition, the department may make information available to licensees and managers on best practices for risk-reduction techniques.

(b) The towing company owner, manager, or their representative must, upon request, make available to the inspector all records, notices and other documents required by these rules.

(c) Upon completion of the inspection, the owner manager, or representative shall be advised in writing of the results of the inspection. The inspection report will indicate whether the inspection was approved or not approved, and will describe any violations identified during the inspection.

(d) For inspections that are not approved, the inspection report will identify violations that must be corrected by the owner. The report will also indicate the corrective actions required to address the violations, in accordance with §86.453. Additionally, the department may assess administrative penalties and/or administrative sanctions for violations.

§86.451.Periodic Inspections.

(a) Each towing company shall be inspected at least once every two years.

(b) The towing company owner, manager, or their representative must, upon request, make available to the inspector all records, notices and other documents required by these rules.

(c) Upon completion of the inspection, the owner manager, or representative shall be advised in writing of the results of the inspection. The inspection report will indicate whether the inspection was approved or not approved, and will describe any violations identified during the inspection.

(d) For inspections that are not approved, the inspection report will identify violations that must be corrected by the owner. The report will also indicate the corrective actions required to address the violations, in accordance with §86.453. Additionally, the department may assess administrative penalties and/or administrative sanctions for violations.

§86.650.Towing and Storage Advisory Board.

(a) The advisory board consists of the nine members appointed by the chairman of the commission with the approval of the commission. The nine members include:

(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 of a vehicle storage facility located in a county with a population of less than one-million;

(4) one representative of a vehicle storage facility located in a county with a population of one-million or more;

(5) one peace officer from a county with a population of less than one-million;

(6) one peace officer from a county with a population of one-million or more;

(7) one parking facility representative;

(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 automobile insurance in this state; and

(9) one person who operates both a towing company and a vehicle storage facility.

(b) The advisory board shall include representation for each classification of towing.

(c) Advisory board members serve terms of six years, with the terms of two or three members, expiring on February 1 of each odd-numbered year.

(1) A member may not serve more than two full consecutive terms.

(2) If a vacancy occurs during a term, the chairman of the commission will appoint a replacement who meets the qualifications of the open position to serve for the balance of the term.

(d) The chairman of the commission appoints one of the advisory board members to serve as the presiding officer of the advisory board for one year. The presiding officer of the advisory board may vote on any matter before the advisory board.

(e) Advisory board members do not receive compensation. They are, subject to the General Appropriations Act, reimbursed for actual and necessary expenses incurred in performing the duties of the advisory board.

(f) The advisory board meets twice yearly and may meet at other times at the call of the chairman of the commission or the executive director.

(g) The advisory board provides advice and recommendations to the department on technical matters relevant to the administration and enforcement of this chapter, including examination content, licensing standards, continuing education requirements, and maximum amounts that may be charged for fees related to private property tows.

§86.800.Fees.

(a) Application Fees

(1) Permit Tow Truck

(A) Original Application--$75

(B) Renewal--$75

(C) Duplicate Permit--No charge

(D) Permit Amendment--$25

(2) Tow Company License

(A) Original Application--$350

(B) Renewal--$350

(C) Duplicate License--$25

(D) Permit Amendment--$25

(3) Operator License

(A) Original Application--$100

(B) Renewal--$100

(C) Duplicate License--$25

(D) Operator License Amendment--$25

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705327

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 13, 2017

For further information, please call: (512) 463-8179


16 TAC §86.212, §86.452

The repeals are adopted under Texas Occupations Code, Chapters 51 and 2308, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51 and 2308. No other statutes, articles, or codes are affected by the proposal.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 21, 2017.

TRD-201705326

Brian E. Francis

Executive Director

Texas Department of Licensing and Regulation

Effective date: January 15, 2018

Proposal publication date: October 13, 2017

For further information, please call: (512) 463-8179