TITLE 16. ECONOMIC REGULATION

PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

CHAPTER 71. RESIDENTIAL SOLAR RETAILERS AND SALESPERSONS

The Texas Commission of Licensing and Regulation (Commission) adopts new rules at 16 Texas Administrative Code (TAC), Chapter 71, Subchapter A, §71.1 and §71.4; Subchapter C, §§71.21, 71.22, 71.24, and 71.25; Subchapter D, §§71.30 - 71.32; Subchapter E, §§71.41 - 71.43; Subchapter F, §71.51 and §71.52; Subchapter G, §71.60; and Subchapter H, §71.71, regarding the Residential Solar Retailers and Salespersons program, without changes to the proposed text as published in the March 13, 2026, issue of the Texas Register (51 TexReg 1486). These rules will not be republished.

The Commission also adopts new rules at 16 TAC Chapter 71, Subchapter A, §71.2 and §71.3; Subchapter C, §71.20 and §71.23; Subchapter E, §71.40; Subchapter F, §71.50; and Subchapter H, §71.72 and §71.73, regarding the Residential Solar Retailers and Salespersons program, with changes to the proposed text as published in the March 13, 2026, issue of the Texas Register (51 TexReg 1486). These rules will be republished.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The adopted rules implement Senate Bill (SB) 1036, 89th Legislature, Regular Session (2025), which enacted Texas Occupations Code, Chapter 1806, the Residential Solar Retailer Regulatory Act (the Act). SB 1036 provides the Department with regulatory authority over residential solar transactions and requires salespersons and the companies that oversee them, known as solar retailers, to obtain registrations. SB 1036 went into effect on September 1, 2025. Under the transition language of SB 1036, certain provisions went into effect on the bill's effective date, while registration requirements and certain enforcement provisions begin on September 1, 2026. SB 1036 also directed the Department to form and consult a stakeholder workgroup for the development of rules implementing that legislation. The adopted rules were developed with the assistance of that workgroup.

The adopted rules define key concepts, clarify the Department's regulatory scope, provide details regarding registration and insurance requirements, state requirements for the form and format of solar contracts, and create a code of conduct for solar retailers and salespersons. Further, the adopted rules set out requirements for solar salespersons and solar retailers to provide consumers with disclosures and educational materials, specify the manner in which solar contracts can be cancelled, and include provisions relating to fees and enforcement provisions.

SECTION-BY-SECTION SUMMARY

Subchapter A. General Provisions

The adopted new §71.1, Authority, provides citations to the statutory authority for the rule chapter. Subsection (a) clarifies that although Chapters 51 and 1806 of the Texas Occupations serve as the primary authority, specific provisions of the chapter also implement other statutes. Subsection (b) clarifies that in addition to this chapter, the provisions of 16 TAC Chapter 60, Procedural Rules of the Commission and Department, also apply to this program.

The adopted new §71.2, Applicability, specifies the applicability of the rule chapter and has been revised in response to public comment received. In the adopted rule, proposed subsection (a) was stricken, and the remaining two subsections were re-lettered. Adopted Subsection (a) clarifies that Subchapters E, F, and H apply beginning September 1, 2026. Adopted Subsection (b) clarifies that the chapter also applies to licensed electrical contractors except where they are specifically exempted by statute or rule.

The adopted new §71.3, Definitions, provides definitions for the chapter. The definitions incorporate by reference certain statutory definitions, supplement these definitions, and provide additional definitions. The term "lease" is defined broadly to include power purchase agreements, which are separately defined. In the adopted rule, non-substantive changes, including changes to capitalization and removal of surplus verbiage, were made for clarity and stylistic consistency.

The adopted new §71.4, Exemption of Solar Retailers from Continuing Education Requirements, implements Texas Occupations Code §1806.106 and clarifies that any continuing education requirements will be applicable only to solar salespersons and not to solar retailers.

Subchapter C. Registration of Solar Retailers and Salespersons

The adopted new §71.20, Registration Requirements--Retailers, consists of four subsections. Subsection (a) outlines the general requirement for a solar retailer to be registered unless exempt. Subsection (b) establishes eligibility criteria for registration. Subsection (c) establishes the required documents to be submitted, along with the required fee, to obtain a registration. Subsection (d) provides that a solar retailer registration may not be transferred. In the adopted rule, a correction was made to capitalization under subsection (b) for stylistic consistency.

The adopted new §71.21, Insurance Requirements--Retailers, establishes insurance requirements for solar retailers. Pursuant to this section, solar retailers are required to maintain general liability insurance that covers liability to consumers arising from the acts of the solar retailer and salespersons. The section establishes the minimum coverage amounts and types of eligible insurers. The section also provides that the Department must be named as a certificate holder on the policy and that the solar retailer must notify the Department within ten days of any change in coverage.

The adopted new §71.22, Registration Renewal Requirements--Retailers, establishes that solar retailers must renew their registration annually, provide required documentation, including information about salespersons and proof of insurance, and pay the required fee.

The adopted new §71.23, Registration Requirements--Solar Salespersons, consists of four subsections. Subsection (a) establishes a general requirement for solar salespersons to be registered and to work under a registered solar retailer. Subsection (b) establishes general registration requirements. Subsection (c) establishes required documents to be submitted, along with the required fee, to obtain a registration. Subsection (d) provides that a solar salesperson registration may not be transferred. In the adopted rule, a correction was made to capitalization under subsection (b) for stylistic consistency.

The adopted new §71.24, Registration Renewal Requirements--Solar Salespersons, establishes that solar salespersons must renew their registration annually, provide required documentation, and pay the required fee.

The adopted new §71.25, Duty to Update Registration Information--Solar Retailers and Solar Salespersons, establishes a duty to notify the Department of changes to certain information. Both solar retailers and solar salespersons are required to notify the Department within 30 days of any change to certain contact information. Solar retailers are additionally required to notify the Department of changes related ownership or controlling persons.

Subchapter D. Exemptions

The adopted new §71.30, Exemptions, tracks statutory exemptions under Texas Occupations Code §1806.005 and details systems to which the chapter does not apply.

The adopted new §71.31, Exempt Agreements, clarifies that the chapter does not apply to solar contracts entered into before September 1, 2025, the effective date of SB 1036.

The adopted new §71.32, Exemption of Electrical Contractors and Employees, implements Texas Occupations Code §1806.004, and clarifies when and to what extent the chapter applies to licensed electrical contractors or to employees of the contractors, when those persons engage in conduct that would otherwise require registration as a solar retailer or solar salesperson.

Subchapter E. Requirements of Solar Contracts

The adopted new §71.40, Requirements of Solar Contract--General, consists of two subsections. Subsection (a) establishes standards for the form and format of solar contracts and requires the inclusion of certain substantive provisions to protect consumers. Subsection (b) sets forth when and how the executed contract must be delivered to the consumer. Based on the Commission's decision at its May 20, 2026, meeting, subsection (a)(1) from the proposed rule, which pertained to the required language in which the contract is written, was struck, and the remaining paragraphs in subsection (a) were renumbered in the adopted rule. Additionally, in the adopted rule, a correction was made to capitalization in subsection (a) for stylistic consistency.

The adopted new §71.41, Requirements of Contract--Disclosures, establishes requirements regarding the use of a disclosure form designed by the Department. The rule consists of five subsections. Subsection (a) requires the solar salesperson to complete all information on the form, to provide it to the consumer prior to the solar contract being signed, and to provide the form in the consumer's preferred language if the Department makes the form available in that language. Subsection (b) requires the form to be signed by both the consumer and the solar salesperson. Subsection (c) requires the information on the form to be accurate. Subsection (d) provides that the terms stated on the form are considered part of the contract. Subsection (e) specifies when the form must be provided in printed, rather than electronic, form.

The adopted new §71.42, Requirements of Contract--Right to Cancel, implements Texas Occupations Code §1806.156, which gives consumers a right to cancel solar contracts within five business days. The adopted rule establishes certain contract requirements pertaining to the right to cancel, clarifies how cancellation is communicated, and states how timeliness of cancellation is computed.

The adopted new §71.43, Educational Materials, implements Texas Occupations Code §1806.053. The rule clarifies that the Department will publish the required educational brochure on its website and that a solar salesperson must provide the brochure to a consumer at least 24 hours prior to the execution of a solar contract.

Subchapter F. Code of Conduct; Prohibited Acts

The adopted new §71.50, Code of Conduct for Solar Retailers; Duty to Supervise Solar Salespersons, consists of eight subsections. Subsection (a) makes the code of conduct for solar salespersons also applicable to solar retailers, and requires solar retailers to comply with the Act, applicable rules, and orders of the Department. Subsection (b) establishes the duties of a solar retailer in supervising salespersons, including remedial measures the solar retailer must take in response to prohibited acts. Subsection (c) specifies a solar retailer's duties regarding the processing of a solar contract cancellation. Subsections (d) and (e) establish record retention and production responsibilities. Subsection (f) establishes responsibilities related to ceasing operations. Subsection (g) establishes duties regarding responses to consumer requests. Subsection (h) requires cooperation with Department investigations. In the adopted rule, corrections were made to capitalization under subsections (b) and (f) for stylistic consistency.

The adopted new §71.51, Code of Conduct for Solar Salespersons, consists of three paragraphs. Paragraph (1) requires general compliance with the Act, applicable rules, and orders of the Department. Paragraph (2) imposes requirements of honesty, integrity, and fair dealing. Paragraph (3) requires solar salespersons to provide certain contact and registration information to consumers upon request.

The adopted new §71.52, Prohibited Acts, applies to both solar retailers and solar salespersons. Subsection (a) relates to false and misleading statements. Subsections (b) and (c) relate to specific restricted or prohibited marketing and business practices. Subsection (d) prohibits solar salespersons from operating unless they are associated with a supervising solar retailer. Subsection (e) prohibits solar retailers from failing to comply with the terms of solar contracts.

Subchapter G. Fees

The adopted new §71.60, Fees, establishes fees for the program.

Subchapter H. Enforcement

The adopted §71.71, Enforcement Authority, cites to the statutory enforcement authority.

The adopted §71.72, Administrative Penalties and Sanctions, consists of three subsections. Subsection (a) sets forth in general that a person who violates the Act, this chapter, or related orders, is subject to administrative penalties and sanctions. Subsection (b) clarifies that a person who violates statutes or rules applicable to electricians and electrical contractors may be prosecuted under those provisions in addition to the Act and this chapter. Subsection (c) implements Texas Occupations Code §1806.203 and provides that the Department may consider whether a person harmed by a violation was elderly in determining the amount of an administrative penalty. In the adopted rule, a correction was made to capitalization under subsection (c) for stylistic consistency.

The adopted §71.73, Contract Recission and Refunds, implements Texas Occupations Code §1806.207 and contains provisions related to contract recission and refunds being ordered by the Commission or the Department's executive director in response to violations of the Act or rules. Due to the changes made to §71.2, Applicability, the text of proposed §71.73(a), concerning the effective date of the rule, was stricken as redundant, and the remaining subsections in §71.73 were re-lettered in the adopted rule.

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the March 13, 2026, issue of the Texas Register (51 TexReg 1486). The Department requested public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. The public comment period closed on April 13, 2026. The Department received comments from 30 interested parties on the proposed rules. The public comments are summarized below.

A stakeholder workgroup consisting of representatives from various state agencies, industry groups, consumer interest groups, and an electric cooperative, assisted in the development of the proposed rules. The workgroup met on April 27, 2026, to review the public comments received, and the stakeholder workgroup members provided oral comments during that meeting. Following the meeting, a workgroup member who served as a representative of the Solar Energy Industry Association (SEIA) provided additional written comment. This comment recommended adoption of the proposed rules with changes and is addressed below together with SEIA's previously submitted written comments. The oral comments from the stakeholder workgroup meeting are separately summarized below.

Of the 30 written comments received, three expressed support for the proposed rules as written, 20 expressed support with requested changes, one comment expressed opposition to the entirety of the proposed rules, and six comments did not clearly state a position on the proposed rules. The twenty comments requesting changes included comments from the Texas Solar and Storage Association (TSSA), the Texas Elder Justice Coalition (TEJC), the Independent Electrical Contractors of Texas (IEC), the Solar Energy Industries Association (SEIA), the Southern Methodist University Dedman School of Law Civil Consumer Clinic (SMU), along with comments from three solar-related businesses and twelve individuals. Comments and the Department's responses are summarized below. In some cases, similar public comments are summarized together.

Comments in Support

Comment (from an individual): The commenter expressed strong support of the proposed rules, expressed that rules protecting individuals over age 65 are particularly important, and expressed that solar energy should be made readily available.

Department Response: The Department appreciates the comment in support of the proposed rules and makes no changes in response.

Comment (from two individuals): The commenters expressed support for the rules and advocated for additional legislation to protect consumers.

Department Response: The Department appreciates the comment in support of the proposed rules and makes no changes in response.

Comments Requesting Changes

Comment (TSSA): The proposed rules should be changed to require that the contract should be written in the language used in the sales presentation. Additionally, the proposed rules should permit contracts to be delivered through electronic means other than e-mail, such as web applications. The proposed rules' requirements concerning delivery of printed contracts and disclosure forms are burdensome and electronic delivery should be considered sufficient. The 24-hour waiting period between the time the educational brochure is delivered and the contract is signed poses an unnecessary burden due to the fact that consumers now have five business days to cancel contracts. A requirement for a recorded welcome call should be added to the rules. Making and retaining a recording of the consumer being advised of the contract terms would help to eliminate uncertainty concerning allegations of misrepresentations. The language in §71.31 is confusing due to it appearing to exempt only contracts signed after September 1, 2025, which is the effective date of the statute but predates the date of proposed adoption of the rules. Lastly, the proposed rules should clarify the extent to which the Act and rules apply to battery storage systems.

Department Response: The Department appreciates the comment. The Department has removed a provision in §71.40 concerning the required language of the contract, partially in response to public comment and in response to concerns of the Commission, to avoid confusion or conflict with other law. The Department agrees that the language in §71.2 concerning the effective date of various rules and subchapters introduces the possibility of confusion, and has made clarifying changes to the adopted rule. The language in §71.31, however, directly tracks the statutory language in Texas Occupations Code §1806.005(a)(2)(C). The Department therefore declines to make changes to §71.31. Concerning the requirements of delivering printed contracts and disclosure forms, the restrictions on electronic completion of documents, and the required waiting period, the rules attempt to strike a necessary balance between protecting elderly and otherwise vulnerable consumers from confusion and exploitation, while not unduly burdening industry. After careful consideration and consultation with the stakeholder workgroup, the Department declines to make the requested changes. Concerning the recording of sales welcome calls, insufficient information currently exists concerning industry norms to justify the adoption of a rule at this time. Regarding battery storage systems, additional clarification may require statutory amendment. The Department declines to make changes at this time but may consider this topic for possible future rulemaking.

Comment (TEJC): The proposed rules should be strengthened through enhanced disclosure and transparency requirements, additional protections against high-pressure sales tactics, additional measures to ensure accountability and consumer affordability, and post-installation oversight. Specifically, the contracts should be provided in the language used in the sales presentation, additional requirements on font-size and simplicity of contract language should be added, the 24-hour waiting period following the educational brochure should be expanded to 72 hours, loopholes regarding electrical contractors should be closed, additional required contract terms should be added, the consumer's ability to afford the contract should be examined, and a requirement for financial counseling should be considered.

Department Response: The Department appreciates the comment. The Department has removed a provision in §71.40 concerning the required language of the contract, partially in response to public comment and in response to concerns of the Commission, to avoid confusion or conflict with other law. The Department declines to make the other requested changes. The exemption provisions pertaining to electrical contractors track statutory language. Concerning the commenter's remaining requested changes, it is important to note that the rules seek to strike a necessary balance between consumer protection and avoiding undue burden to industry.

Comment (IEC): The commenter expressed general support for the proposed rules, but requested changes in response to concerns that electrical contractors and electricians may be unfairly subject to sanctions under both the Act and Occupations Code, Chapter 1305.

Department Response: The Department appreciates the comment. The proposed rules in question are consistent with Occupations Code §1806.208. To protect consumers, it is necessary that electricians and electrical contractors, when engaged in residential solar retail, remain subject to all applicable statutory provisions. The Department therefore declines to make changes in response to the comment.

Comments (SEIA, written and oral comments): The contract should be written in the language used in the sales presentation. The rule provisions requiring a contract term that an accompanying loan be cancelled when the solar contract is cancelled within the five-day cancellation period are unfair because the solar retailer does not control the terms of third-party loans. The proposed rules' requirements regarding electronic transactions are unduly burdensome and conflict with the Uniform Electronic Transactions Act (UETA). The proposed requirements concerning delivery of paper copies of contracts and disclosure forms are also unnecessarily burdensome. The required language in the right-to-cancel notices should track that required by other statutes that provide consumers with rights to cancel sales transactions. The 24-hour waiting period following the delivery of the educational brochure is redundant and unnecessary. The requirements regarding cessation of operations may be unenforceable under bankruptcy law. The document retention requirements should be shortened. A rule concerning the recording of welcome calls should be considered. The registration requirements for solar retailers should contain a carve-out for when licensed contractors sell the systems. An increasing number of storage-only systems are being sold and the same policy problems apply to the sale of these systems as to the sale of traditional residential solar energy systems. The rules should contain a safe harbor provision that provides for solar retailers to be deemed in substantial compliance with the rules when they maintain reasonable policies, training, and verification procedures.

Department Response: The Department appreciates the comments. The Department has removed a provision in §71.40 concerning the required language of the contract, partially in response to public comment and in response to concerns of the Commission, to avoid confusion or conflict with other law. The Department declines to make the other requested changes. Although UETA prescribes minimum requirements for electronic transactions in general, UETA does not preclude the Department from imposing additional requirements by rule that are designed to protect elderly and otherwise vulnerable consumers. Texas Occupations Code §1806.051 specifically empowers the Department to adopt rules pertaining to the form and format of contracts and disclosures. Although federal bankruptcy law may in some cases preempt state law, the proposed rules concerning cessation of business go beyond the bankruptcy context and apply when a solar retailer decides, for whatever reason, to cease operations in this state. The exemptions in the proposed rules track those of statute. The Act does not appear to empower the Department to carve out additional exemptions. The required contract term concerning loan cancelation is necessary to give full effect to a consumer's right to cancel. The rules seek to strike a necessary balance between consumer protection and avoiding undue burden to industry. Concerning the sale of storage-only systems, regulation of these transactions would likely require a statutory change. The Department therefore declines to make changes at this time in response to this portion of the comment. Lastly, a safe harbor provision like the one requested would likely dilute the effectiveness of the specific rule requirements. The Department therefore declines to make this requested change.

Comment (SMU): The exemption under the proposed rules for solar energy systems that are sold or leased in connection with new residential construction should be limited to homes built for the purpose of resale and should not include consumers who have their own homes built. This change is consistent with the purposes of SB 1036 and would help to protect consumers. The exemption for employees of licensed electrical contractors should be restricted to licensed electricians. Electrical contractors should not be allowed to circumvent the purposes of the act using the services of unlicensed helpers to act as solar salespersons. The sales contract should be written in the language used in the sales presentation. The statement concerning the right to cancel should be on the first page of the solar contract. The contract should include the date of the transaction, a link to the section of the department's website for filing a complaint, and instructions on how to file a complaint.

Department Response: The Department appreciates the comment. The Department has removed a provision in §71.40 concerning the required language of the contract, partially in response to public comment and in response to concerns of the Commission, to avoid confusion or conflict with other law. The Department declines to make the other requested changes. The requested changes to the exemptions lack clear support from the language of the Act. The information concerning the right-to-cancel is required by the proposed rules to be in the disclosure form and to be prominently displayed in the contract. It does not appear necessary to further require the information to be on the first page of the contract. The other requested changes do not appear necessary at this time but may be considered for a future rulemaking.

Comment (from two solar-related businesses): The proposed rules should clarify that the rules do not apply to the sale of do-it-yourself kits. The Act was not intended to regulate the self-installation of solar energy systems. Because it is less expensive for a consumer to either self-install a system or choose the consumer's own installer than to use the installer suggested by a door-to-door salesperson, regulating the sale of do-it-yourself kits would increase costs to consumers.

Department Response: The Department appreciates the comment. The relevant definitions in the rules, including the definition of residential solar energy system, track the statutory language. The Act does not allow the Department to create additional exemptions. It appears that the requested changes would require a legislative change. For these reasons, the Department declines to make the requested changes.

Comment (from three individuals on behalf of a solar-related business): The insurance requirements in the proposed rules should be expanded to require errors and omissions coverage for solar salespersons.

Department Response: The Department appreciates the comment. The possibility of requiring this type of coverage was considered by the stakeholder workgroup. This type of policy generally excludes coverage for intentional acts. Because it is not clear at this time that this type of coverage is necessary to protect consumers, the Department declines to make the requested change but may consider this for a future rulemaking.

Comment (from three individuals, two of whom commented on behalf of a solar-related business): The Department should use the services of a particular private company to perform background checks on applicants for solar salesperson registrations and to assist with other regulatory functions.

Department Response: The Department declines to make a change to the proposed rules in response to this comment. While the Department may at some point elect to contract for certain services, this does not need to be reflected in the program rules at this time.

Comment (from an individual): The proposed rules should require clarity concerning sales commissions.

Department Response: The Department appreciates the comment, but declines to make the requested change, as this does not appear necessary to protect consumers at this time. The Department may consider this for a future rulemaking if the need for this becomes apparent.

Comment (from two individuals): The commenters requested that the rules impose further requirements to ensure that warranties are properly honored.

Department Response: The Department appreciates the comment. The underlying Act does not focus on compliance with warranty terms, which are governed by other consumer protection statutes, but focuses on ensuring that transactions are conducted fairly and that consumers are adequately informed of their rights and responsibilities under the contracts. The proposed rules require that solar contracts clearly state the terms of any warranties, that solar retailers retain copies of the solar contract during and after the warranty period, and that current and former solar retailers provide the Department with contact information. These provisions are designed to enable consumers to understand and effectively exercise their warranty rights. In doing so, the rules attempt to track the purposes of the statute and pave the way for effective regulation. The Department therefore declines to make changes to these provisions.

Comment (from an individual): The rules should provide that if a solar retailer files for bankruptcy the lender will not be able to collect from the consumer.

Department's Response: The Department appreciates the comment. Although the rules do not go so far as the commenter suggests, the Department notes that Rule §71.40 requires that solar contracts include clauses that clearly set forth a consumer's remedies in the event of a default and that require the solar retailer to pay off an outstanding loan balance if cancellation is ordered by the Department after notice and a hearing. The rules attempt to strike a balance of protecting consumers while not unduly burdening industry. Therefore, the Department declines to make changes in response to this comment.

Comment (from an individual on behalf of a solar-related business): The Department should require all solar salespersons to hold a particular industry certification. The Department should additionally impose stronger background check requirements, standardize cost savings and production estimates, require recorded sales calls, require additional transparency surrounding sales commissions, require additional loan-related disclosures, create additional training requirements for salespersons, impose a mandatory installation delay beyond the five-day cooling off period, provide for a balanced complaint system that incorporates arbitration, require a consumer "readiness check," and provide for additional accountability after installation.

Department Response: The Department appreciates the comment. Under the rules, consumers will be furnished mandatory Department-approved informational brochures and disclosure sheets. It is anticipated that the disclosure sheets will include information about financing. The rules attempt to strike a balance of protecting consumers while not unduly burdening industry. Therefore, the Department declines to make changes in response to this comment.

Comment in Opposition

Comment (from an individual): The proposed rules are detrimental to a consumer's right to choose a solar provider and impose unnecessary restrictions on businesses.

Department Response: The Department appreciates the comment. The proposed rules are necessary to implement legislation and reflect a balance between the need for consumer protection and the avoidance of unnecessary burdens. The Department declines to make changes in response to the comment.

Stakeholder Workgroup Member Comments

During the April 27, 2026, stakeholder workgroup meeting, oral comments were submitted by Pete Parsons of the Texas Solar Energy Society (TSES), Stephanie Mace of the American Association of Retired Persons (AARP), Mark Bench of SEIA, and Lauren McGee of the Office of Attorney General, Consumer Protection Division (OAG-CPD). Mr. Bench's comments on behalf of SEIA are included in the summary and response to SEIA's written comments, above.

Comment (TSES): The organization has received phone calls from concerned consumers with limited English proficiency who need help understanding contracts written in English. The contract should be made available in the consumer's preferred language. The organization also has concerns about fly-by-night installation companies who frequently change hands or take money before suddenly going out of business. The step of having to update the Department with contact information after ceasing operations is necessary to address these concerns. The organization believes that further legislative refinements may be needed to address a variety of issues, including consumer remedies against lenders.

Department Response: The Department appreciates the comments. The adopted rules include many safeguards to ensure consumers understand solar contracts and their rights under the Act. Although other consumer protection laws address the language in which contracts must be provided, the Commission declined to address this issue in the adopted rules, due to concerns of unintended consequences and regulatory burden.

Comment (AARP): The organization expressed an interest in further exploring industry standards for welcome calls and in assisting with the development of rules related to welcome calls in a future rulemaking. The organization expressed support for the provisions in the proposed rules that require printed contracts for certain elderly consumers. The organization requested that where a printed copy of a contract is required under the rules, the five-day right to cancel should not begin to run until the printed copy is delivered.

Department Response: The Department appreciates the comments and looks forward to working with all stakeholders in future rulemakings, which may include rules to address requirements of welcome calls. Under Texas Occupations Code §1806.156, the five-day right to cancel begins when the contract is executed. Because the commencement of this period is statutory, the Department declines to deviate from this provision by rule.

Comment (OAG-CPD): The agency suggested a requirement that solar retailers make copies of contracts available on their websites in several languages.

Department Response: The Department appreciates the suggestion. Although such a rule could prove helpful to consumers, enforcement of such a rule would likely be cumbersome. The Department declines to make the requested change at this time but may consider it in a future rulemaking should it appear necessary.

Other Comments

Comment (from six individuals): The commenters generically advocated for robust regulations to protect consumers, without specifying requested changes to the proposed rules. Some of these commenters also advocated for legislative changes to increase consumer protections. Some of these commenters identified as current or former solar customers who experienced past difficulty in getting clear and straightforward information from solar retailers.

Department Response: The Department appreciates the comments. The adopted rules are designed to protect consumers, consistent with the Act, and attempt to strike a policy by doing so without unduly burdening industry. The Department is unable to make changes that require legislative changes. The Department therefore declines to make changes in response to these comments.

COMMISSION ACTION

At its meeting on May 20, 2026, the Commission adopted the proposed rules with changes to Subchapter A, §71.2 and §71.3; Subchapter C, §71.20 and §71.23; Subchapter E, §71.40; Subchapter F, §71.50; and Subchapter H, §71.72 and §71.73. These changes are explained in the Section-by-Section Summary.

SUBCHAPTER A. GENERAL PROVISIONS

16 TAC §§71.1 - 71.4

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, specifically §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department; and Chapter 1806, specifically §1806.051, which authorizes the Commission to adopt rules necessary to administer and enforce Chapter 1806, and §1806.052, which authorizes the Commission to establish and collect reasonable and necessary fees to administer and regulate Chapter 1806.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 1806; and Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).

§ 71.2. Applicability.

(a) The provisions of Subchapters E, F, and H apply beginning September 1, 2026, the effective date of §1806.101, §1806.102, and Subchapter E of the Act.

(b) This chapter applies to an electrical contractor licensed under Texas Occupations Code, Chapter 1305, except as exempted by Subchapter D of this chapter or §1806.004 of the Act.

§ 71.3. Definitions.

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.

(1) Act--Texas Occupations Code, Chapter 1806, the Residential Solar Retail Regulatory Act.

(2) Business days--The term means calendar days excluding weekends and legal holidays as defined by Texas Government Code §662.021.

(3) Commission--Texas Commission of Licensing and Regulation.

(4) Consumer--The term means:

(A) an individual who, for primarily personal, family, or household purposes:

(i) purchases or leases a solar energy system;

(ii) agrees to the installation of a solar energy system on the consumer's premises; or

(iii) purchases electricity generated by a solar energy system installed on the individual's premises under a power purchase agreement; or

(B) a person who would constitute a consumer under (A) if a solicited or proposed solar contract were executed.

(5) Controlling Person--The term has the meaning assigned by §1806.003 of the Act.

(6) Department--Texas Department of Licensing and Regulation.

(7) DTPA--Texas Deceptive Trade Practices-Consumer Protection Act, Subchapter E, Chapter 17, Texas Business and Commerce Code.

(8) Electric cooperative--The term has the meaning assigned by Texas Utilities Code §11.003.

(9) Electrical contractor--A person licensed as an electrical contractor under Texas Occupations Code, Chapter 1305.

(10) Installer--A person responsible for the installation of a residential solar energy system.

(11) Lease--With respect to residential solar energy systems, the term includes any arrangement in which a consumer agrees, for financial consideration, to the installation of a system on the consumer's premises without acquiring ownership of the system. The term includes a power purchase agreement.

(12) Municipally owned utility--The term has the meaning assigned by Texas Utilities Code §11.003.

(13) Person--An individual, corporation, organization, estate, trust, partnership, association, and any other legal entity.

(14) Power purchase agreement--An agreement between a consumer and a solar retailer for the consumer's purchase of electricity generated by a solar energy system not owned by the consumer, but located on the consumer's premises.

(15) Residential solar energy system--The term has the meaning assigned by §1806.002 of the Act.

(16) Residential solar retail--The term means:

(A) the sale or lease of, or an offer to sell or lease, a residential solar energy system; or

(B) a transaction involving any combination of the acts described by Paragraph (A).

(17) Solar contract--An agreement, subject to the Act, for the sale or lease of a residential solar energy system.

(18) Solar energy system--A system or configuration of solar energy devices that collects and uses solar energy to generate electricity.

(19) Solar retailer--A person who employs or otherwise contracts for the services of an individual to engage in residential solar retail on the person's behalf.

(20) Solar salesperson--An individual who engages in residential solar retail for compensation.

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 June 10, 2026.

TRD-202602375

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER C. REGISTRATION OF SOLAR RETAILERS AND SALESPERSONS

16 TAC §§71.20 - 71.25

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, specifically §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department; and Chapter 1806, specifically §1806.051, which authorizes the Commission to adopt rules necessary to administer and enforce Chapter 1806, and §1806.052, which authorizes the Commission to establish and collect reasonable and necessary fees to administer and regulate Chapter 1806.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 1806; and Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).

§ 71.20. Registration Requirements--Retailers.

(a) Unless registered as a solar retailer or exempt, a person must not employ or otherwise contract for the services of an individual to engage in residential solar retail on the person's behalf.

(b) To be eligible for registration as a solar retailer:

(1) the applicant must meet all applicable registration requirements of the department; and

(2) each controlling person must satisfy the department's criminal history criteria, in accordance with Texas Occupations Code §51.356 and the department's rules in 16 TAC, Chapter 60, Subchapter D.

(c) An applicant for a solar retailer registration must submit the following in the manner prescribed by the department:

(1) a completed application form;

(2) a completed criminal history questionnaire for each controlling person;

(3) the fee required under §71.60;

(4) proof of insurance required under §71.21, which may be in the form of an industry standard certificate of insurance;

(5) a phone number, mailing address, and e-mail address or website address at which consumers may reach the applicant with inquiries; and

(6) the name and department-issued registration number of each solar salesperson who will provide solar retail on the applicant's behalf, if known.

(d) A solar retailer registration may not be transferred.

§ 71.23. Registration Requirements--Solar Salespersons.

(a) A person must not engage in residential solar retail unless the person:

(1) is registered as a solar salesperson; and

(2) engages in solar retail on behalf of a registered solar retailer.

(b) To be eligible to register as a solar salesperson, a person must:

(1) be an individual;

(2) satisfy the department's criminal history criteria, in accordance with Texas Occupations Code §51.356 and the department's rules in Chapter 60, Subchapter D; and

(3) meet all applicable registration requirements of the department.

(c) An applicant for a solar salesperson registration must submit the following in the manner prescribed by the department:

(1) a completed application form;

(2) a completed criminal history questionnaire;

(3) the business name and registration number of the solar retailer on whose behalf the solar salesperson will engage in residential solar retail, if known; and

(4) the fee required under §71.60.

(d) A solar salesperson registration may not be transferred.

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 June 10, 2026.

TRD-202602376

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER D. EXEMPTIONS

16 TAC §§71.30 - 71.32

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, specifically §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department; and Chapter 1806, specifically §1806.051, which authorizes the Commission to adopt rules necessary to administer and enforce Chapter 1806, and §1806.052, which authorizes the Commission to establish and collect reasonable and necessary fees to administer and regulate Chapter 1806.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 1806; and Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).

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 June 10, 2026.

TRD-202602377

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER E. REQUIREMENTS OF SOLAR CONTRACTS

16 TAC §§71.40 - 71.43

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, specifically §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department; and Chapter 1806, specifically §1806.051, which authorizes the Commission to adopt rules necessary to administer and enforce Chapter 1806, and §1806.052, which authorizes the Commission to establish and collect reasonable and necessary fees to administer and regulate Chapter 1806.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 1806; and Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).

§ 71.40. Requirements of Solar Contract--General.

(a) A solar contract must:

(1) be written in clear, understandable language that is easy to read; and understand;

(2) state the name, business address, registration number, business email address, and business phone number, of both the solar retailer and solar salesperson;

(3) prominently and in plain language set forth any energy production guarantees, the terms conditions of any warranty, and any provisions related to the rights and remedies of any party in the event of a default;

(4) provide that the installer will be a Texas-licensed electrical contractor;

(5) state the name and license number of the installer, or a list of names and license numbers of electrical contractors from which the installer will be selected;

(6) provide that the solar retailer or installer will obtain:

(A) any permit required by a government entity for the installation; and

(B) approval by the electric utility, electric cooperative, or municipally owned utility serving the person's residence of the interconnection of the residential solar energy system, if applicable;

(7) contain and prominently display all contract provisions and disclosures required by the Act and this chapter, including a statement of the consumer's right to cancel the transaction in accordance with §1806.156 of the Act and §71.42 of this chapter; and

(8) If the sale or lease of a residential solar energy system involves a third-party lender that is affiliated with or referred by the solar retailer or solar salesperson, the solar contract must include provisions:

(A) requiring the third-party lender to cancel any accompanying loan made by the third-party lender to the buyer or lessee upon the consumer's cancellation of the solar contract under §1806.156 of the Act; and

(B) requiring the solar retailer to pay the outstanding balance of the loan in the event a cancellation is ordered by the department or executive director after notice and a hearing, in accordance with §1806.207 of the Act.

(b) A solar salesperson must provide a copy of the executed solar contract to the consumer as follows.

(1) Except as provided in paragraph (2), the solar salesperson must provide a printed copy of the solar contract to the consumer at the time the contract is executed.

(2) If the contract is executed electronically, the solar salesperson may provide only an electronic copy of the contract to the consumer at the time of execution, if:

(A) the consumer provides an e-mail address for this purpose;

(B) the solar salesperson verifies that the consumer is able to access the e-mail account and view electronic documents, and;

(C) the consumer, in electronic form, consents to electronic delivery of the contract and waives the right to receive a printed copy of the contract at the time of execution.

(3) An electronic copy of a contract provided pursuant to paragraph (2) must be in portable document (.PDF) format.

(4) If a solar salesperson provides a consumer with a printed copy of the contract at the time of execution, the solar salesperson or solar retailer may also provide the consumer with an electronic courtesy copy and is not required to comply with the provisions of paragraph (2).

(5) A consumer who receives an electronic copy of the contract pursuant to paragraph (2) may later request a printed copy of the contract from the solar retailer. Upon such request, the solar retailer must deliver a printed copy of the contract to the consumer within:

(A) one business day, if the request is made within five business days of the date the contract is executed, or

(B) five business days, if the request is made at any other time.

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 June 10, 2026.

TRD-202602378

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER F. CODE OF CONDUCT; PROHIBITED ACTS

16 TAC §§71.50 - 71.52

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, specifically §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department; and Chapter 1806, specifically §1806.051, which authorizes the Commission to adopt rules necessary to administer and enforce Chapter 1806, and §1806.052, which authorizes the Commission to establish and collect reasonable and necessary fees to administer and regulate Chapter 1806.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 1806; and Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).

§ 71.50. Code of Conduct for Solar Retailers; Duty to Supervise Solar Salespersons.

(a) A solar retailer must comply with all provisions of §71.51, Code of Conduct for Solar Salespersons, all applicable requirements of the Act and this chapter, and all orders of the department or executive director issued in accordance with the Act or this chapter.

(b) A solar retailer must exercise reasonable supervision over all solar salespersons who perform services on the solar retailer's behalf, and must:

(1) ensure that the form and format of solar contracts prepared by the solar retailer:

(A) comply with the requirements of the Act and this chapter; and

(B) include all required disclosures required by the Act, this chapter, or other law;

(2) provide adequate training to solar salespersons to inform them of the requirements of the Act and this chapter;

(3) verify at the time of hire that all solar salespersons requiring a registration under the Act and this chapter are registered with the department; and

(4) take the following steps, where applicable in response to a violation by a solar salesperson of the Act or rules which becomes known to the solar retailer:

(A) promptly provide a consumer with accurate information to remedy false or misleading information provided by a solar salesperson; and

(B) promptly take corrective action, including at a minimum a written warning, to a solar salesperson in response to any violation, and provide remedial training reasonably necessary to prevent recurrence.

(c) When a consumer timely requests cancellation of a contract in accordance with the Act, a solar retailer must timely process the cancellation, arrange the removal of any installed equipment, and refund any monies advanced by the consumer.

(d) A solar retailer must maintain the following documents for the term of the solar contract, including the term of any warranty provided for in the solar contract, plus a period of five years:

(1) the signed disclosure form;

(2) the executed solar contract; and

(3) any documentation related to the installation of the solar energy system.

(e) A solar retailer must maintain records for each solar salesperson of the date of hire, the date of separation, and any written admonishment for a violation of the Act or this chapter during the salesperson's tenure and for five years after the salesperson's separation from the solar retailer. The solar retailer must produce the records to the department upon request.

(f) Prior to ceasing operations in this state, a solar retailer must designate a record keeper to maintain the records required by this chapter for the required time periods, designate a responsible party to honor any ongoing warranty or other obligations of the solar retailer under the original contract, if applicable, and provide the department with name and contact information for the record keeper and designated responsible party.

(1) The solar retailer must notify the department within 30 days of any change in contact information for the designated record keeper or responsible party.

(2) The department will upon request furnish a member of the public with the record keeper and responsible party contact information provided under this subsection.

(g) Upon a request from a consumer, a solar retailer must:

(1) promptly respond to reasonable inquiries concerning a solar contract, including inquiries regarding the required cancellation procedures, installation, and the performance of other obligations under the contract;

(2) furnish the solar retailer's name and department-issued registration number and that of any solar salesperson who acts under the solar retailer's supervision; and

(3) furnish to the consumer or the consumer's designated representative, a copy of the solar contract.

(h) A solar retailer must cooperate with an investigation by the department by furnishing information or documents for inspection when directed to do so.

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 June 10, 2026.

TRD-202602379

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER G. FEES

16 TAC §71.60

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, specifically §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department; and Chapter 1806, specifically §1806.051, which authorizes the Commission to adopt rules necessary to administer and enforce Chapter 1806, and §1806.052, which authorizes the Commission to establish and collect reasonable and necessary fees to administer and regulate Chapter 1806.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 1806; and Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).

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 June 10, 2026.

TRD-202602380

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER H. ENFORCEMENT

16 TAC §§71.71 - 71.73

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, specifically §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department; and Chapter 1806, specifically §1806.051, which authorizes the Commission to adopt rules necessary to administer and enforce Chapter 1806, and §1806.052, which authorizes the Commission to establish and collect reasonable and necessary fees to administer and regulate Chapter 1806.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 1806; and Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).

§ 71.72. Administrative Penalties and Sanctions.

(a) If a person or entity violates any provision of the Act, any provision of this chapter, or any provision of an order of the executive director or department, proceedings may be instituted to impose administrative penalties, administrative sanctions, or both administrative penalties and sanctions in accordance with the provisions of the Act and Texas Occupations Code, Chapter 51.

(b) If a person or entity, including a licensed electrical contractor, engages in conduct that would subject the actor to disciplinary action both as provided under subsection (a), and under the provisions of Texas Occupations Code, Chapter 1305, or the rules at 16 TAC, Chapter 73 (Electricians), the person or entity is subject to disciplinary action under all applicable provisions.

(c) In accordance with §1806.203 of the Act, in determining the appropriate amount of an administrative penalty, the department may, in addition to any other factor permitted by law, consider whether any individual over the age of 65 at the time of the prohibited conduct was harmed by the conduct.

§ 71.73. Contract Rescission and Refunds.

(a) In accordance with §1806.207 of the Act, the commission or executive director may, after notice and a hearing and after finding that a violation of this chapter or a rule adopted under this chapter has occurred, order the cancellation of solar contract and the refund of any amount paid by the consumer under the solar contract.

(b) The amount of a refund ordered under this section may not exceed the amounts paid by the consumer under the solar contract.

(c) A proceeding under this section is a contested case under Texas Government Code, Chapter 2001.

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 June 10, 2026.

TRD-202602381

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 13, 2026

For further information, please call: (512) 463-7750


CHAPTER 73. ELECTRICIANS

16 TAC §§73.10, 73.21, 73.26, 73.80, 73.110 - 73.112

The Texas Commission of Licensing and Regulation (Commission) adopts amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 73, §§73.26, 73.80, 73.110, and 73.111, regarding the Electricians program, without changes to the proposed text as published in the April 10, 2026, issue of the Texas Register (51 TexReg 2308). These rules will not be republished.

The Commission also adopts amendments to existing rules at 16 TAC Chapter 73, §§73.10, 73.21, and a new rule at 73.112, regarding the Electricians program, with changes to the proposed text as published in the April 10, 2026, issue of the Texas Register (51 TexReg 2308). These rules will be republished.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 73, implement Texas Occupations Code, Chapter 1305, Electricians.

The adopted rules are necessary to address a shortage of journeyman electricians and do so by creating an accelerated pathway for graduates of an approved accelerated journeyman electrician education program ("JEEP program").

Under Texas Occupations Code §1305.155, to become a journeyman electrician, an applicant must have 8,000 hours of on-the-job training under the supervision of a master electrician and must pass an examination. The current rule at 16 TAC §73.10 defines "on-the-job training" narrowly to include only "electrical work," which is also defined restrictively by the rule. Historically, the first-time passage rate for the journeyman electrical examination has been less than 30 percent. The combined effect of the arduous on-the-job training requirements and examination policies have contributed to the current shortage of journeymen electricians. Current Department policy allows applicants to sit for the examination after completing 7,000 hours of the statutorily-required 8,000 hours of supervised on-the-job training.

Under Texas Occupations Code §51.4041(a), the Department has the authority to adopt alternative means of determining a person's eligibility for a license, including evaluating the person's education, training, or experience. Texas State Technical College has proposed to offer an intensive hands-on education program to provide students with in-depth knowledge of the current National Electrical Code and to prepare them to take the journeyman electrician examination. Under the proposal, most of the instruction will occur in a laboratory setting under the direct supervision of qualified electricians. Because this type of instruction will be the functional equivalent of on-the-job training, the adopted rules redefine "on-the-job training" to include participation in this type of program. The precise number of hours each student spends to complete the program, including time practicing skills in a laboratory, will vary based on the time it takes the student to master the relevant skills.

Due to the intensive and focused nature of the instruction offered in the program, under the adopted rules, program graduates will ordinarily receive 4,000 hours of on-the-job training credit for JEEP program completion and may receive additional credit for electrical work performed for third parties in an optional cooperative education element.

Also, under the adopted rules, program graduates will be eligible to immediately sit for the journeyman electrical examination and the current policy of authorizing examination after 7,000 hours for other candidates is formalized in rule. Thus, by allowing early examination and providing on-the-job training credit for instruction received, the adopted rules provide an accelerated track to journeyman licensure under the Department's alternative qualification authority. Under the adopted rules, the Executive Director is empowered to extend the period of validity of examination results of JEEP program graduates if good cause is shown, so that the student will retain the benefit of early examination.

The adopted rules establish criteria for approval of a JEEP program and related curriculum, mechanisms for audit and inspection of programs, and set a fee for evaluation of a program for approval. Lastly, the adopted rules correct a statutory reference in a rule and make non-substantive clarifying and stylistic changes to existing rules.

SECTION-BY-SECTION SUMMARY

The adopted rules amend §73.10, Definitions. The statutory reference in paragraph (3), pertaining to the definition of "career and technology education program" is corrected to Texas Occupations Code §1305.1575(a)(1). A definition of the term "Accelerated Journeyman Electrician Education Program" is provided in new paragraph (12). Existing paragraphs (12) through (30) are renumbered as (13) through (31), respectively. The definition of "on-the-job training," currently found in paragraph (23) is moved to paragraph (24) and a sentence is added to include hours earned in the JEEP program in the definition. Additionally, throughout the section, the word "licensee" is replaced with the term "license holder" and male pronouns are replaced with gender-neutral pronouns for stylistic consistency. Lastly, the word "while," in relation to the performance of electrical sign work, is inserted in the definition of Electrical Sign Apprentice currently found in paragraph (22) and moved to paragraph (23), for clarity. The adopted rules differ from the proposed rules by adding new paragraph (32) to include a reference to the statutory definition of apprenticeship training programs.

The adopted rules amend §73.21, Licensing Requirements--Examinations. Two new subsections, (b) and (c) are inserted, and existing subsection (b) is re-lettered as (d). New subsection (b) allows applicants to sit for the journeyman electrician examination after either completing 7,000 hours of on-the-job training or completing the JEEP program. New subsection (c) allows the Executive Director, for JEEP program graduates, to extend the period that the test results are valid, if good cause is shown. The adopted rules differ from the proposed rules by inserting language into subsection (b)(2) to provide that graduates of certain apprenticeship programs may also sit immediately for the licensing examination.

The adopted rules amend §73.26, Documentation of Required On-The-Job Training. New subsection (e) is inserted to establish when and how an applicant will receive on-the-job training credit for completion of the JEEP program, including how electrical work performed under an optional cooperative program is treated. Language is added to existing subsection (a) to recognize the exception in new subsection (e). Stylistic changes are made to the language in subsections (b) and (c) for clarity and consistency.

The adopted rules amend §73.80, Fees. Subsection (f) is amended to reflect that a $90 fee will be charged for the evaluation of a prospective JEEP program for approval. Subsection (g) is amended to reflect that the waiver of renewal fees, currently extended to instructors in career and technology education programs for residential wiremen, will now be also extended to instructors of JEEP programs.

The adopted rules amend §73.110, Career and Technology Education Program Requirements. The phrase "residential wiremen" is added to the title of the section for clarity. New subsection (a) is inserted, with language distinguishing the program from the new JEEP program and clarifying that certain restrictions under that section do not apply to the JEEP program. Existing subsections are re-lettered.

The adopted rules amend §73.111, Compliance with Career and Technology Education Program Requirements. The phrase "residential wiremen" is added to the section title for clarity. New subsection (a) is inserted, with language clarifying that the rule does not apply to the JEEP program. Existing subsections are re-lettered.

The adopted rules add new §73.112, Accelerated Journeyman Electrician Education Program. Subsection (a) states the authority for and applicability of the section, and cites to both program statutes and the Department's alternative qualification statute as sources of authority. Subsection (b) states general requirements for the program, including that both the curriculum and program must be approved by the Department. Subsection (c) provides information related to curriculum approval. Subsection (d) states required elements of a curriculum. Subsection (e) establishes hands-on instruction requirements. Subsection (f) establishes requirements for a program to apply for approval. Subsection (g) requires an approved program to notify the Department of changes related to the program. Subsection (h) provides for audits and inspections. Subsection (i) provides for rescission of approval. Subsection (j) clarifies that denial or recission of approval does not constitute a contested case under the Administrative Procedure Act (Texas Government Code, Chapter 2001). Subsection (k) clarifies how approval will impact current students in a program. Subsection (l) establishes how credit will be awarded and gives the Executive Director authority to award greater credit than generally provided in the subsection. In the adopted version, language concerning minimum contact hours in subsection (e) is stricken from the proposed version, and language is added to clarify that the hands-on instruction requirements apply only to the technical training curriculum. Lastly, in the adopted version, the 3,000 hours of on-the-job training credit stated in the proposed version of subsection (l)(3) is replaced with 4,000 hours, based on the Commission's finding that this amount better aligns with the quality of the training to be received through the program and the effort necessary to complete it.

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the April 10, 2026, issue of the Texas Register (51 TexReg 2308). The Department requested public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. The public comment period closed on May 11, 2026.

The Department received comments from eleven interested parties in response to the required summary of the proposed rules, which was posted on the Department's website and distributed on March 30, 2026, the same day that the proposed rules were filed with the Texas Register, but before the official publication of the proposed rules and the official start of the public comment period. Subsequently, the Department received comments from 25 interested parties on the published proposed rules during the official public comment period and from thirteen interested parties after the public comment period.

In total, the Department received comments from 49 interested parties. The Department received 54 written comments. Nine oral comments were delivered by interested persons at the May 20, 2026 Commission meeting. The Department received multiple written comments from some commenters and received both oral and written comments from some commenters. Of the 49 commenters, thirteen expressed unconditional support for the proposed rules, six expressed support with requested changes, 29 expressed opposition to the proposed rules, and one comment did not express a position on the proposed rules. The commenters in support included the Texas Association of Business, Cicero Action (a public policy organization), Opportunity Austin, the Texas Association of Manufacturers, the Texas Chemistry Council, and individuals. The commenters expressing support with requested changes included Texas State Technical College (TSTC), Texas Association of Builders, Associated Builders and Contractors of Texas (ABCT), Brazosport College, Independent Electrical Contractors of Texas (IEC), and an electrical business. The commenters expressing opposition included the International Brotherhood of Electrical Workers (IBEW) Local 72, the Texas Electrical Safety Association (TESA), individuals, and an electrical business. In some cases, similar comments are combined for brevity. Because the comments received in response prior to publication of the proposed rules did not substantially differ from those received after publication, the comments will be addressed together. Comments and the Department's responses are summarized below.

Comments in Support

Comment (consolidation of oral and written comments from Texas Association of Business): Texas lacks enough licensed journeyman electricians to meet demand. Under the current system, there is a low passage rate due to candidates being inadequately prepared. The current definition of on-the-job training is too narrow and contributes to the shortage. The proposed rules are a smart, targeted reform and address the shortage without lowering safety standards.

Department Response: The Department appreciates the comments and makes no changes in response.

Comment (written from Cicero Action): The proposed rules address the shortage of qualified electricians and do not pose a risk to safety. Texas' current licensure requirements are stricter than other states. Research shows that stricter licensure requirements for electricians do not generally improve safety outcomes. The proposal will improve the building of infrastructure and consumer outcomes. Although the commenter expressed support for the rules as-is, the commenter suggested that the rules could be enhanced by establishing performance benchmarks as part of the approved JEEP curriculum, award on-the-job training credit to graduates of similar programs from out of state, and allowing a competency-exam pathway for graduates of other nontraditional programs.

Department Response: The Department appreciates the comments and makes no changes in response. The suggested enhancements do not appear necessary at this time, however, the Department may consider implementing them in a future rulemaking if the need becomes apparent.

Comment (consolidation of similar written comments from two individuals): The addition of this program would be very beneficial in helping with the book learning needed to pass the examination.

Department Response: The Department appreciates the comment and makes no changes in response.

Comment (oral from Texas Association of Manufacturers): The proposed JEEP program addresses a vital workforce need. Manufacturing remains a cornerstone of the Texas economy. Texas manufacturing supports roughly 970,000 jobs and contributes $338 billion in value to the Texas economy. Texas remains the number one manufacturing state in the United States. For Texas to remain competitive with other states, it is vital to keep up with necessary facility expansions to keep plant operations growing across the state. Shortages within the licensed electrical trade slow equipment installation, increase costs, and create uncertainty for maintenance and expansion projects. The proposed pathway addresses the shortage without lowering standards.

Department Response: The Department appreciates the comment and makes no changes in response.

Comment (consolidation of similar oral comments from two electrical businesses, written comments from an electrical business, and written comments from one individual): The proposed rules will help to maintain a skilled workforce and will increase examination pass rates. The proposed rules address the challenge posed by the current shortage of electricians in a practical and responsible way. Many additional journeyman electricians are needed due to data centers and other construction projects. The current pipeline of incoming electricians is insufficient to meet demand. TSTC has a proven track record of success. The proposed rules do not lower standards, but strengthen the pipeline of qualified individuals entering the profession.

Department Response: The Department appreciates the comment and makes no changes in response.

Comment (oral from Texas Chemistry Council): The petrochemical industry is a key driver of economic activity. Texas leads the nation in petrochemical manufacturing and exports $50 billion of products around the world per year. The business of chemistry depends on a strong, qualified workforce. Chemical manufacturing facilities are complex, safety-critical environments that depend on the work of skilled electricians in order to expand and safely operate. The current shortage of journeyman electricians delays plan improvements and expansions, drives up capital project costs, creates operational safety risks, and threatens the state's ability to attract investment and build the next generation of facilities. Workforce availability is one of the top factors a company will consider in choosing where to locate a facility. The JEEP program offers a responsible, structured solution and provides a meaningful accelerated pathway that will not compromise safety.

Department Response: The Department appreciates the comment and makes no changes in response.

Comment (written from Opportunity Austin): Demand for electricians in the Austin area has increased by 39 percent over the last five years and is projected to grow by an additional 20 percent by 2030. With increasing commercial construction across manufacturing, tech, data center, and other large-scale industry projects, in addition to residential construction, demand in the region may be even higher than this projection. Innovative solutions like the JEEP program are critical to addressing demand for electricians. The commenter specifically argued for an award of 3,000 hours of on-the-job training for JEEP program graduates, stating that this amount would align with the depth, structure, and outcomes of a high-quality accelerated program.

Department Response: The Department appreciates the comment and makes no changes in response. Although the proposed rules provided for a baseline of 3,000 hours of on-the-job training credit, the Commission determined at the May 20, 2026, meeting that an award of 4,000 hours would best align with quality of the training to be received through the program and the effort necessary to complete it.

Comments Requesting Changes

Comment (TSTC, consolidation of oral and written comments): The commenter expressed support for the proposed rules, but requested that the language in §73.112(e) be clarified. TSTC's proposed curriculum includes some academic and elective courses in addition to the technical training curriculum. The language in the proposed rules requiring that 80 percent of the curriculum include intensive hands-on learning should apply only to the technical training curriculum. Texas is facing a growing shortage of licensed electricians in the state. As a state agency, it is TSTC's duty to address the workforce needs of the state. Safety is a priority at TSTC, which is ensured by the supervised hands-on learning environment. The curriculum is industry-driven and overseen by an advisory committee. TSTC uses only qualified faculty. While it is true that electricians need time in the field to hone their craft, not all hours are created equal. The proposed rules are not about lowering standards but recognize the value of high-quality training.

Department Response: The Department agrees that the hands-on learning requirement should apply only to the technical training curriculum and makes a corresponding change in the adopted rules.

Comment (Texas Association of Builders): The commenter expressed general agreement with the proposed rules but requested that the amount of on-the-job training credit awarded to JEEP program graduates be expanded to 4,000 hours, and stated that doing so would better align with the depth of the program, enhance effectiveness, and recognize the value of competency-based education.

Department Response: The Department appreciates the comment. After consideration of this and all other comments, the Commission determined that the requested change should be made to generally provide JEEP program graduates with 4,000 instead of 3,000 hours of credit toward on-the-job training credit, as this amount more closely aligns with the quality of the training to be received through the program and the effort necessary to complete it.

Comment (consolidation of oral and written from ABCT): The comment mirrored that of the Texas Association of Builders and urged the award of 4,000 hours of on-the-job training credit for graduates of JEEP programs.

Department Response: The Department appreciates the comment. For the reasons cited above, the Department agrees to make the requested change.

Comment (Brazosport College): The comment requested that additional safeguards and structural enhancements be added to the rules pertaining to JEEP programs. The requested changes include a competency-based validation requirement, creating an intermediate license classification for electrical craftsmen, and incorporating additional program approval standards in rule.

Department Response: The Department appreciates the comment. The Department believes the requested changes are unnecessary at this time. The rules require intensive hands-on learning to be included in the curriculum and provide the Department with needed flexibility in approving or modifying the model curriculum based on circumstances existing at the time. The Department therefore declines to make changes in response to this comment.

Comment (IEC): The commenter requested that the proposed rules be modified to require JEEP program participants to obtain real-world experience on job sites and demonstrate that they are able to apply code and safety requirements in real-world conditions.

Department Response: The Department appreciates the comment, but declines to make changes in response to the comment at this time. Under the framework of the proposed rules, program participants will receive substantial real world on-the-job training in addition to the education they receive through the program.

Comments in Opposition

Comment (from an individual): The proposed rules provide for insufficient field experience. The purpose of field experience goes beyond knowledge of the National Electrical Code (NEC).

Department Response: The Department appreciates the comment. The JEEP program pathway provided for in the proposed rules seeks both to familiarize students with the NEC and to provide them with relevant practical skills to apply the code to real life situations. The pathway will still require extensive supervised field experience, striking a necessary policy balance. The Department therefore declines to make changes in response to this comment.

Comment (consolidation of similar comments from 22 individuals and one electrical business): Classroom instruction cannot replace the thousands of hours required to safely master the trade. Correctly applying the NEC in real world environments requires muscle memory and years of supervision. The proposed rules incentivize trade schools to flood the market with underqualified graduates, jeopardizing the public trust in the gold standard of a Texas journeyman electrician license. If the JEEP program pathway is adopted, additional safe rails should be included in the rules, such as capping the on-the-job training credit at 1,000 hours, mandating the curriculum meet the standards applied by the United States Department of Labor to apprenticeship programs, requiring the programs to be supervised by a master electrician with five years of verifiable field experience, auditing JEEP programs and requiring, as a condition of continued approval, that program graduates meet certain benchmarks for examination pass rates.

Department Response: The Department appreciates the comment. The Department finds the proposed rules necessary to address the current shortage of journeyman electricians and low examination passage rates. It is within the Department's power under Texas Occupations Code §51.4041(a) to prescribe alternative methods of qualification. Safeguards in the proposed rules include: a requirement for each JEEP program to apply for approval and meet the Department's curriculum standards, a requirement for extensive hands-on supervision, a requirement that the instructors be licensed electricians and that any hands-on electrical work be generally supervised by a licensed master electrician, and a requirement that JEEP programs are subject to audit. The Department believes that the safeguards incorporated to the proposed rules are sufficient to protect against the potential harms identified by the commenters. The Department therefore declines to make changes in response to this comment.

Comment (from an individual): The commenter opposed the proposed rules for the reasons cited in the previous comment, and proposed two alternative solutions to address the shortage of journeyman electricians: requiring two years of formal education or setting a maximum number of years a person can hold an apprentice license without attempting to advance to the journeyman level.

Department Response: See the response to the previous comment. The Department appreciates the comment and the proposed alternatives, but notes that these alternatives would likely require legislative changes, as they impose additional qualifications beyond those prescribed by statute. The Department believes that the JEEP program pathway is the best means to address the current shortage of journeyman electricians, but is open to possibly exploring additional solutions in a future rulemaking. The Department therefore declines to make changes in response to this comment.

Comment (from an individual): The proposed rules create a two-tier system, producing electricians with inconsistent skill levels and weakening industry standards. Texas already has a proven pathway through registered apprenticeship programs that combine instruction with hands-on training. The Department should address the shortages by expanding these programs.

Department Response: The Department appreciates the comment. Given the prerequisites for a JEEP program to obtain approval, which include curriculum standards and extensive hands-on training from qualified instructors, combined with the requirement for JEEP program graduates to obtain additional on-the-job training post-graduation, the Department does not agree that program graduates will be less capable than those of apprenticeship programs. The Department therefore declines to make changes in response to this comment. The Department agrees that registered apprenticeship programs provide a very valuable pathway for prospective journeyman electricians. In the adopted rules, graduates of such apprenticeship programs are also eligible to immediately sit for the journeyman electrician examination, consistent with the treatment that JEEP program graduates will receive. The Department is open to considering, in a future rulemaking, additional measures to encourage the development of apprenticeship programs.

Comment (from three individuals): The proposed definition of "on-the-job training" is too expansive. Sitting in a classroom should not be accepted as a substitute for on-the-job training.

Department Response: Under the proposed rules, participants in the JEEP program will do far more than sit in a classroom. The program will require extensive hands-on instruction under an approved curriculum. The program is expected to impart real world skills, comparable to those one would gain at a job site, in addition to teaching the NEC. Due to the quality and characteristics of the instruction and the time and effort needed to complete the program, completion of the program falls within a reasonable definition of on-the-job training. The Department therefore declines to make changes in response to this comment.

Comment (from an individual who identified as a union member): The commenter raised the same safety and credential dilution concerns as identified by other commenters. The commenter additionally questioned what the minimum standards for JEEP program approval would be, how TDLR will enforce quality control, and how JEEP programs will be held accountable if they produce underqualified graduates.

Department Response: See the responses to above comments pertaining to safety and credential dilution concerns. The Department appreciates the comment. Under the proposed rules, the Department will prescribe minimum curriculum requirements, oversee the approval process, may conduct audits and investigations, and has the power to revoke program approval if the circumstances so warrant. The Department believes that these safeguards are appropriate to ensure adequate quality of the education experience and declines to make changes in response to this comment.

Comment (oral from TESA): There is no substitute for on-the-job training. The NEC requires that electrical work be performed by qualified persons, which are defined as individuals who have the skills, knowledge, and safety training to perform the work safely and recognize hazards. These skills cannot be gained through the classroom alone. Real competency is built through hands-on, on-the-job experience. Lowering standards to address a temporary shortage would risk weakening public safety and the integrity of the profession and would be a mistake. Instead, the Commission should consider creating a new special journeyman license for apprentices with eight years of field experience and should waive examination for those individuals. Similar systems previously existed in Texas prior to the Department's regulation of the profession.

Department Response: The Department appreciates the comment. It is important to note that hands-on instruction under qualified supervision are required elements of the proposed JEEP program. Additionally, although JEEP program graduates will receive some on-the-job training credit, they will still be required to complete substantial on-the-job training outside of the program. As such, the proposed rules strike an important balance of responsibly addressing the shortage of qualified electricians without compromising safety or quality standards. The examination serves an important purpose of ensuring that applicants are adequately familiar with and able to apply the NEC. The Department therefore declines to make changes in response to this comment.

Other Comments

Comment: The commenter mentioned having worked for fifteen years in the cell tower industry and not having received on-the-job training credit toward his journeyman electrician license. The commenter indicated that the experience is comparable to other types of electrical work.

Department Response: Although the proposed rules do seek to redefine on-the-job training for purposes of ensuring that JEEP program participants receive credit for work completed under the program, the proposed rules do not otherwise alter the scope of what types of work constitute acceptable on-the-job training. Because the requested change is beyond the intended scope of this rulemaking, the Department declines to make changes in response to this comment.

ADVISORY BOARD RECOMMENDATIONS AND COMMISSION ACTION

The topics of the proposed JEEP program and the application of the Department's alternative qualification power were discussed at the Electrical Safety and Licensing Advisory Board meetings held on January 29, 2026, and February 25, 2026. The proposed rules were developed with assistance of the education and examination workgroup and the rules workgroup assigned by the presiding officer of the advisory board. Due to time constraints, the proposed rules were not presented to the full advisory board for recommendation prior to publication in the Texas Register for public comment.

The Electrical Safety and Licensing Advisory Board met on May 12, 2026, to discuss the proposed rules and the public comments received. The Advisory Board did not recommend that the Commission adopt the proposed rules as published in the Texas Register, with or without changes.

At its meeting on May 20, 2026, the Commission adopted the proposed rules with changes to §§73.10, 73.21, and 73.112 as published in the Texas Register. These changes are explained in the Section-by-Section Summary.

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 1305, which authorize the Texas Commission of Licensing and Regulation, 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 adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 1305. No other statutes, articles, or codes are affected by the adopted rules.

§ 73.10. Definitions.

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.

(1) Assumed name--A name used by a business as defined in the Business and Commerce Code.

(2) Business affiliation--The business organization to which a master license holder's license may be assigned.

(3) Career and technology education program--An educational program, defined in Texas Occupations Code §1305.1575(a)(1), focused on electrical training and either:

(A) offered by a public high school under Subchapter F, Chapter 29, Education Code; or

(B) offered by a private high school or institution of higher education and determined by the department to be similar to a program described by subparagraph (A) of this paragraph.

(4) Employee--An individual who performs tasks assigned by the individual's employer. The employee is subject to the deduction of social security and federal income taxes from the employee's pay. An employee may be full time, part time, or seasonal.

(5) Employer--One who employs the services of employees, pays their wages, deducts the required social security and federal income taxes from the employee's pay, and directs and controls the employee's performance.

(6) Filed--A document is deemed to have been filed with the department on the date that the document has been received by the department or, if the document has been mailed to the department, the date a postmark is applied to the document by the U.S. Postal Service.

(7) General Supervision--Exercise of oversight by a master electrician on behalf of an electrical contractor, or electrical sign contractor, or by a master sign electrician on behalf of an electrical sign contractor of performance by all classes of electrical license holders of electrical work bearing responsibility for the work's compliance with applicable codes under Texas Occupations Code, Chapter 1305.

(8) On-Site Supervision--Exercise of supervision of electrical work or electrical sign work by a licensed individual other than an electrical apprentice. Continuous supervision of an electrical apprentice is not required, though the on-site supervising license holder is responsible for review and inspection of the electrical apprentice's work to ensure compliance with any applicable codes or standards.

(9) Electrical Contractor--A person or entity, licensed as an electrical contractor, that is in the business of performing "Electrical Contracting" as defined by Texas Occupations Code, §1305.002(5).

(10) Master Electrician--An individual, licensed as a master electrician, who on behalf of an electrical contractor, electrical sign contractor, or employing governmental entity, performs "Electrical Work" as defined by Texas Occupations Code, §1305.002(11).

(11) Journeyman Electrician--An individual, licensed as a journeyman electrician, who works under the general supervision of a master electrician, on behalf of an electrical contractor, or employing governmental entity, while performing "Electrical Work" as defined by Texas Occupations Code, §1305.002(11).

(12) Accelerated Journeyman Electrician Education Program--A program approved by the department as provided under §73.112 of this chapter, designed to prepare an individual to pass the required examination and for rapid entry into the profession of journeyman electrician.

(13) Electrical Apprentice--An individual, licensed as an apprentice who works under the on-site supervision of a master electrician, journeyman electrician, or residential wireman, on behalf of an electrical contractor or employing governmental entity performing "Electrical Work" as defined by Texas Occupations Code, §1305.002(11).

(14) Electrical Sign Contractor--A person, or entity, licensed as an electrical sign contractor, that is in the business of performing "Electrical Sign Contracting" as defined by Texas Occupations Code, §1305.002(9).

(15) Institution of higher education--An "institution of higher education" or a "private or independent institution of higher education," as those terms are defined by §61.003, Education Code.

(16) Master Sign Electrician--An individual, licensed as a master sign electrician, who, on behalf of an electrical sign contractor, performs "Electrical Sign Work" as defined in paragraph (21).

(17) Journeyman Sign Electrician--An individual, licensed as a journeyman sign electrician, who works under the general supervision of a master electrician or a master sign electrician, on behalf of an electrical sign contractor, while performing "Electrical Sign Work" as defined in paragraph (21).

(18) Residential Wireman--An individual, licensed as a residential wireman, who works under the general supervision of a master electrician, on behalf of an electrical contractor, or employing governmental entity, while performing electrical work that is limited to electrical installations in single family and multifamily dwellings not exceeding four stories, as defined by Texas Occupations Code, §1305.002(13).

(19) Maintenance Electrician--An individual, licensed as a maintenance electrician, who works under the general supervision of a master electrician, on behalf of an electrical contractor, or employing governmental entity while performing "Electrical Maintenance Work" as defined in paragraph (20).

(20) Electrical Maintenance Work--The replacement, or repair of existing electrical appurtenances, apparatus, equipment, machinery, or controls used in connection with the use of electrical energy in, on, outside, or attached to a building, residence, structure, property, or premises. All replacements or repairs must be of the same rating and type as the existing installation. No improvements may be made that are necessary to comply with applicable codes under Texas Occupations Code, Chapter 1305. Electrical maintenance work does not include the installation of any new electrical appurtenances, apparatus, equipment, machinery, or controls beyond the scope of any existing electrical installation.

(21) Electrical Sign Work--Any labor or material used in manufacturing, installing, maintaining, extending, connecting or reconnecting an electrical wiring system and its appurtenances, apparatus or equipment used in connection with signs, outline lighting, awnings, signals, light emitting diodes, and the repair of existing outdoor electric discharge lighting, including parking lot pole lighting. This also includes the installation of an electrical service integral to an isolated sign and/or outline lighting installation.

(22) Work Involved in the Manufacture of Electrical Equipment--Work involved in the manufacture of electrical equipment includes on and off-site manufacture, commissioning, testing, calibration, coordination, troubleshooting, evaluation, repair or retrofits with components of the same ampacity, maintenance and servicing of electrical equipment within their enclosures performed by authorized employees, or authorized representatives of electrical equipment manufacturers and limited to the type of products they manufacture.

(23) Electrical Sign Apprentice--An individual, licensed as an electrical sign apprentice who works under the on-site supervision of a master electrician, a master sign electrician, or a journeyman sign electrician, on behalf of an electrical sign contractor while performing "Electrical Sign Work" as defined by this chapter.

(24) On-the-job Training--Training or experience gained under the supervision of an appropriate license holder, as prescribed by Texas Occupations Code Chapter 1305, while performing electrical work as defined by Texas Occupations Code, §1305.002(11). The term includes hours earned toward on-the-job training requirements through an accelerated journeyman electrician education program, where permitted by rule.

(25) Residential Appliance Installer--An individual, licensed as a residential appliance installer, who on behalf of a residential appliance installation contractor, performs electrical work that is limited to residential appliance installation including residential pool-related electrical installation and maintenance as defined by Texas Occupations Code, §1305.002(12-b).

(26) Residential Appliance Installation Contractor--A person or entity licensed as a residential appliance installation contractor, that is in the business of residential appliance installation including pool-related electrical installation and maintenance as defined by Texas Occupations Code §1305.002(12-d).

(27) Residential Appliance--Electrical equipment that performs a specific function, and is installed as a unit in a dwelling by direct connection to an existing electrical circuit, such as water heaters, kitchen appliances, or pool-related electrical device. The term does not include general use equipment such as service equipment, other electrical power production sources, or branch circuit overcurrent protection devices not installed in the listed appliance or listed pool-related electrical device.

(28) Offer to perform--To make a written or oral proposal, to contract in writing or orally to perform electrical work or electrical sign work, to advertise in any form through any medium that a person or business entity is an electrical contractor, electrical sign contractor, or residential appliance installation contractor or that implies in any way that a person or business entity is available to contract for or perform electrical work, electrical sign work, or residential appliance installation work.

(29) Electro Mechanical Integrity--The condition of an electrical product, electrical system, or electrical equipment installed in accordance with its intended purpose and according to standards at least as strict as the standards provided by the National Electrical Code, the manufacturer's specifications, any listing or labeling on the product, and all other applicable codes or ordinances.

(30) Journeyman Lineman--An individual who engages in electrical work involving the maintenance and operation of equipment associated with the transmission and distribution of electricity from the electricity's original source to a substation for further distribution.

(31) Journeyman Industrial Electrician--An individual who engages in electrical work exclusively at a business that operates a chemical plant, petrochemical plant, refinery, natural gas plant, natural gas treating plant, pipeline, or oil and gas exploration and production operation.

(32) Apprenticeship training program--has the meaning assigned by Texas Occupations Code §1305.002(1-b).

§ 73.21. Licensing Requirements--Examinations.

(a) To obtain a license by examination issued under this chapter:

(1) An individual applicant must submit a completed application, all necessary documentation, and appropriate fees to the Texas Department of Licensing and Regulation for review and determination of examination eligibility.

(2) An individual applicant must achieve a passing score on an examination approved by the executive director of the Texas Department of Licensing and Regulation.

(b) To be eligible to sit for examination as a journeyman electrician, an applicant must:

(1) Complete 7,000 hours of the on-the-job training required under Texas Occupations Code §1305.155; or

(2) Have completed an approved accelerated journeyman electrician education program under §73.112 or an apprenticeship training program and submitted an application on a form prescribed by the department to establish eligibility.

(c) The Executive Director may for good cause shown extend the expiration period under §60.56 of the validity of examination results of an applicant who is approved to take an examination under subsection (b)(2) of this section.

(d) To obtain a license without examination, an applicant must have been licensed for the preceding year by a municipality or regional licensing authority that has terminated its licensing program and have applied for a state issued license within ninety days of the date the program stopped issuing or renewing licenses.

§ 73.112. Accelerated Journeyman Electrician Education Program.

(a) Authority and Applicability. This section is adopted under the authority of Texas Occupations Code, §§51.4041(a), 1305.102, and 1305.152. This section applies to approved programs, to students in these programs, and to prospective programs seeking approval as an accelerated journeyman electrician education program.

(b) General Requirements. Applicants for licensure as journeymen electricians may receive credit toward the on-the-job training requirements of Texas Occupations Code §1305.155 under this section for completion of an accelerated journeyman electrician education program approved by the department under this section. Both the individual program and the curriculum must be approved by the department. The department may consult with the advisory board in determining whether to approve a program or curriculum.

(c) Department approval of curriculum. The department may approve a generally required curriculum for use by programs under this section. Upon approval of a curriculum, the department will publish the curriculum on the department's website. The department may revise the curriculum at any time and, in evaluating a program for approval, may approve variations from the generally approved curriculum.

(d) Required elements of curriculum. The curriculum must include extensive training on the current National Electrical Code, electrical safety, methods of electrical work, and compliance with Texas Occupations Code, Chapter 1305 and this chapter. All instruction must be provided by a qualified journeyman or master electrician licensed in this state.

(e) Hands-on training. The curriculum must include intensive hands-on training in a laboratory or similar environment. At least 80 percent of the technical training curriculum must incorporate a significant hands-on training element. Any hands-on training must be generally supervised by a master electrician licensed in this state.

(f) Approval of program required. A person seeking to offer a program under this section must request approval by:

(1) submitting the request in a manner prescribed by the department;

(2) providing copies of course materials requested by the department;

(3) providing the names and license numbers of all electricians who will be supervising or instructing students; and

(4) paying the applicable fee.

(g) An approved program must immediately notify the department of any substantial change to the program.

(h) The department may audit an approved program, inspect the facility in which instruction occurs, and demand the production of records related to the instruction of students. Failure of a program to cooperate with an audit or inspection is grounds for a finding that the program no longer complies with department requirements.

(i) Upon a finding that an approved program does not substantially comply with department requirements, the department may rescind its approval.

(j) A determination or decision under this section is not a contested case under Texas Government Code, Chapter 2001, and may not be appealed.

(k) Effect of program approval. Unless otherwise ordered by the Executive Director, the approval of a program under this section applies to all students enrolled in the program, including those who began participation prior to program approval.

(l) Credit toward on-the-job training requirements.

(1) The Executive Director may order the award of on-the-job training credit hours in a manner that exceeds the amount otherwise prescribed by this section.

(2) Unless otherwise ordered by the Executive Director, applicants who begin but fail to complete a program will not receive credit for program hours completed. This exclusion does not apply to properly supervised electrical work performed in an optional cooperative program under the auspices of a program under this section.

(3) A graduate of a program established under this section will receive credit of 4,000 hours toward the on-the-job training requirements of Texas Occupations Code §1305.155. The department will credit these hours both toward the journeyman license application and any subsequent applications for a master electrician license.

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 June 10, 2026.

TRD-202602373

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: April 10, 2026

For further information, please call: (512) 463-7750


CHAPTER 97. MOTOR FUEL METERING AND QUALITY

The Texas Commission of Licensing and Regulation (Commission) adopts the repeal of an existing rule at 16 Texas Administrative Code (TAC), Chapter 97, Subchapter A, §97.1, new rules at Subchapter A, §97.1; Subchapter B, §97.32; Subchapter C, §97.44 and §97.45; and Subchapter D, §97.61, and amendments to existing rules at Subchapter A, §97.2 and §97.3; Subchapter B, §97.29 and §97.30; Subchapter C, §§97.40, 97.42, 97.43; Subchapter D, §97.58 and §97.59; and Subchapter E, §97.71, regarding the Motor Fuel Metering and Quality program, without changes to the proposed text as published in the February 13, 2026, issue of the Texas Register (51 TexReg 805). These rules will not be republished.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 97, implement Texas Occupations Code, Chapter 2310, Texas Business and Commerce Code, Chapters 607 and 607A, and Texas Government Code, Chapter 426.

The adopted rules are necessary to implement Senate Bill (SB) 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and House Bill (HB) 4690, 89th Legislature, Regular Session (2025), which amend state law regarding motor fuel quality and testing standards, stop-sale orders, and skimmer reporting requirements for service technicians.

SECTION-BY-SECTION SUMMARY

The adopted rules repeal existing §97.1, Authority. The provisions in this repealed rule have been updated and supplemented under new §97.1, Authority.

The adopted rules add new §97.1, Authority. This new rule includes provisions from existing §97.1, which is being repealed, and updates and supplements the existing authority by adding Texas Business and Commerce Code, Chapter 607A, and Texas Government Code, Chapter 426, to the list of applicable statutes authorizing the rules under Chapter 97.

The adopted rules amend §97.2, Definitions, by adding a definition for "Center"; amending the definitions for "Device," "Operator," and "Test standard" to remove references to "weighing" and "weight"; amending the definition for "Tamper-evident security" to correct punctuation; adding a definition for "Electronic terminal;" amending the definition for "Skimmer" to reference newly passed legislation, and renumbering the remaining provisions accordingly.

The adopted rules amend §97.3, Adoption of Standards by Reference, by removing and adding standards adopted by reference to bring the rules in line with the requirements of HB 4690; noting statutory exceptions to motor fuel quality standards; adopting standards for the collecting, sampling, and handling of motor fuel; and renumbering sections accordingly.

The adopted rules amend §97.29, Detection and Reporting of Skimmers, by removing the term "Payment Card" from the section title so that it reads "Detection and Reporting of Skimmers." The adopted rules also clarify that the section applies to skimmers on or in devices as defined by the adopted rules.

The adopted rules amend §97.30, Unauthorized Removal of Skimmers Prohibited, to clarify that the section applies to skimmers on or in devices as defined by the adopted rules.

The adopted rules add new §97.32, Device Specifications and Tolerances, to set the specifications and tolerances for devices under these adopted rules to be the same as the most recently adopted National Institute of Standards and Technology (NIST) standards, as required by HB 4690.

The adopted rules amend §97.40, Distributor, Supplier, Wholesaler--Certificate of Compliance, by removing the term "Jobber" from the section title so that it reads "Distributor, Supplier, Wholesaler--Certificate of Compliance" and removing the term "jobber" from the rule text.

The adopted rules amend §97.42, Stop-Sale Order; Appeal; Remediation, by revising the section title from "Stop-Sale Order" to "Stop-Sale Order; Appeal; Remediation"; amending subsection (a) to allow the Department, with the approval of the executive director, to issue a stop-sale order; amending subsection (b) to include offering to sell motor fuel as an act prohibited by a stop-sale order and to clarify that a stop-sale order is lifted if a dealer or operator prevails in an appeal of the order; and adding new subsection (c) to clarify the process for issuance of a remediation plan to violators following a stop-sale order and to explain the factors the Department may consider when lifting a stop-sale order.

The adopted rules amend §97.43, Fuel Delivery Records, to remove the term "jobbers" from the rule text.

The adopted rules add new §97.44, Methods and Procedures for Collecting, Sampling, and Handling Motor Fuel. The adopted new rule requires the Department or an authorized representative of the Department to collect, sample, and handle motor fuel following the methods and procedures set out in the applicable standards as prescribed under new §97.3(5) and subject to the needs of the Department.

The adopted rules add new §97.45, Methods and Procedures for Testing Motor Fuel Quality. The adopted new rule requires the Department or an authorized representative of the Department to test motor fuel according to the applicable standards as prescribed by §97.3(2).

The adopted rules amend §97.58, Test Standards and Laboratories, by revising the section title from "Test Standards" to "Test Standards and Laboratories"; and adding new subsection (d) to provide that a metrology laboratory certified by the NIST is approved by the Department to inspect and correct the standards for motor fuel used to perform device maintenance activities.

The adopted rules amend §97.59, Inspection for Skimmers, by removing the term "Payment Card" from the section title so that it reads "Inspection for Skimmers."

The adopted rules add new §97.61, Reporting Skimmers on Electronic Terminals. The adopted new rule requires service technicians, or the service company that employs them, to notify owners or operators of the presence of skimmers on electronic terminals and report the skimmer to the Financial Crimes Intelligence Center (FCIC).

The adopted rules amend §97.71, Distributor, Wholesaler, and Supplier Fees, by removing the term "jobber" from the section title so that it reads "Distributor, Wholesaler, and Supplier Fees"; removing the term "jobber" from the rule text; and renumbering the remaining provisions accordingly.

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the February 13, 2026, issue of the Texas Register (51 TexReg 805). The Department requested public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. The public comment period closed on March 16, 2026. The Department received comments from one interested party on the proposed rules. The public comment is summarized below.

Comment: The Texas Food and Fuel Association (TFFA) commented to suggest: (1) alternate language to adopt standards by reference; (2) reduction of the time a retailer must wait before removing a skimmer; and (3) various revisions to §97.42 relating to stop-sale orders, including limiting their scope, adding evidentiary requirements, allowing additional proof of compliance, and removing the proposed remediation provision.

Department Response: The Department appreciates TFFA's comments but disagrees and declines to make changes. (1) The proposed standards-by-reference language is necessary to implement statutory requirements for adoption of applicable ASTM standards and related testing provisions. (2) The Department declines to revise the skimmer removal timeframe because the existing requirement supports coordination with law enforcement and preservation of evidence, and the requested change is outside the scope of this rulemaking. (3) The Department declines to revise §97.42 because the proposed rule is consistent with Texas Occupations Code §2310.060, which authorizes stop-sale orders for violations involving motor fuel or motor fuel metering devices, and the requested changes would conflict with statute, add limitations not found in statute, or unnecessarily restrict the Department's enforcement authority. After consultation with the Motor Fuel Metering and Quality Advisory Board, the Department did not make any changes to the proposed rules in response to the comment.

ADVISORY BOARD RECOMMENDATIONS AND COMMISSION ACTION

The Motor Fuel Metering and Quality Advisory Board met on April 8, 2026, to discuss the proposed rules and the public comments received. The Advisory Board recommended that the Commission adopt the proposed rules as published in the Texas Register .

At its meeting on May 20, 2026, the Commission adopted the proposed rules as published in the Texas Register.

SUBCHAPTER A. GENERAL PROVISIONS

16 TAC §97.1

STATUTORY AUTHORITY

The adopted repeal is adopted under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, 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 adopted repeal are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426.

The legislation that enacted the statutory authority under which the adopted repeal is adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

No other statutes, articles, or codes are affected by the adopted repeal.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 10, 2026.

TRD-202602382

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: February 13, 2026

For further information, please call: (512) 463-7750


16 TAC §§97.1 - 97.3

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, 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 adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426.

The legislation that enacted the statutory authority under which the adopted rules are adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

No other statutes, articles, or codes are affected by the adopted rules.

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 June 10, 2026.

TRD-202602383

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: February 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER B. MOTOR FUEL METERING DEVICES

16 TAC §§97.29, 97.30, 97.32

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, 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 adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426.

The legislation that enacted the statutory authority under which the adopted rules are to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

No other statutes, articles, or codes are affected by the adopted rules.

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 June 10, 2026.

TRD-202602384

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: February 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER C. SALE, DELIVERY, AND QUALITY OF MOTOR FUEL

16 TAC §§97.40, 97.42 - 97.45

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, 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 adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426.

The legislation that enacted the statutory authority under which the adopted rules are to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

No other statutes, articles, or codes are affected by the adopted rules.

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 June 10, 2026.

TRD-202602385

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: February 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER D. SERVICE COMPANIES AND SERVICE TECHNICIANS

16 TAC §§97.58, 97.59, 97.61

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, 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 adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426.

The legislation that enacted the statutory authority under which the adopted rules are to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

No other statutes, articles, or codes are affected by the adopted rules.

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 June 10, 2026.

TRD-202602386

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: February 13, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER E. FEES

16 TAC §97.71

STATUTORY AUTHORITY

The adopted rule is adopted under Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426, which authorize the Texas Commission of Licensing and Regulation, 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 adopted rule are those set forth in Texas Occupations Code, Chapters 51 and 2310, Texas Business and Commerce Code Chapters 607 and 607A, and Texas Government Code Chapter 426.

The legislation that enacted the statutory authority under which the adopted rule is to be adopted is SB 246, 88th Legislature, Regular Session (2023), SB 2371, 89th Legislature, Regular Session (2025), and HB 4690, 89th Legislature, Regular Session (2025).

No other statutes, articles, or codes are affected by the adopted rule.

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 June 10, 2026.

TRD-202602387

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: February 13, 2026

For further information, please call: (512) 463-7750


CHAPTER 118. LASER HAIR REMOVAL

The Texas Commission of Licensing and Regulation (Commission) adopts amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 118, Subchapter A, §118.3; Subchapter B, §118.12 and §118.13; Subchapter C, §§118.26, 118.28, and 118.29; Subchapter F, §118.50; and Subchapter H, §118.70, regarding the Laser Hair Removal program, without changes to the proposed text as published in the March 6, 2026, issue of the Texas Register (51 TexReg 1364). These rules will not be republished.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 118, implement Health and Safety Code Chapter 401.

The adopted rules are necessary to implement Senate Bill (SB) 748, 89th Legislature, Regular Session (2025), specifically, Section 2. These adopted rules also include grammatical changes and other changes recommended by Department staff during the Department's four-year rule review of Chapter 118.

The adopted rules remove size and font size requirements from the warning signs required to be posted at laser hair removal facilities and remove the requirement that the signage include verbiage about the hazards of electromagnetic radiation.

The adopted rules also clarify that an applicant for an apprentice-in-training certification must submit proof of successful completion of a training program approved by the department covering the topics listed in §118.26(a)(3) in addition to §118.26(a)(2).

Finally, the adopted rules amend a consistent grammatical error in Chapter 118 by changing all references from "a LHR facility" to "an LHR facility."

SECTION-BY-SECTION SUMMARY

Subchapter A. General Provisions

The adopted rules amend §118.3, Definitions. The adopted rules correct a consistent grammatical error in Chapter 118 by changing all references from "a LHR facility" to "an LHR facility."

Subchapter B. Laser Hair Removal Facility

The adopted rules amend §118.12, LHR Facility--Responsibilities; and §118.13, LHR Facility--Consulting Physician. The adopted rules amend §118.12(k) by removing size and font size requirements from the warning signs required to be posted at laser hair removal facilities. The adopted rules also remove the requirement that the signage include verbiage about the hazards of electromagnetic radiation and update the Department's current contact phone number for complaints.

The adopted rules also correct a consistent grammatical error in Chapter 118 by changing all references from "a LHR facility" to "an LHR facility."

Subchapter C. Laser Hair Removal Individual Certification

The adopted rules amend §118.26, LHR Individual Certification--Apprentice-in-Training; §118.28, LHR Individual Certification--Senior LHR Technician; and §118.29, LHR Individual Certification--LHR Professional. The adopted rules amend §118.26(b) by clarifying that an applicant for an apprentice-in-training certification must submit proof of successful completion of a training program approved by the department covering the topics listed in §118.26(a)(3) in addition to §118.26(a)(2).

The adopted rules also correct a consistent grammatical error in Chapter 118 by changing all references from "a LHR facility" to "an LHR facility."

Subchapter F. Laser Hair Removal Devices

The adopted rules amend §118.50, LHR Devices--General and Operating Requirements. The adopted rules correct a consistent grammatical error in Chapter 118 by changing all references from "a LHR facility" to "an LHR facility."

Subchapter H. Fees

The adopted rules amend §118.70, Fees. The adopted rules correct a consistent grammatical error in Chapter 118 by changing all references from "a LHR facility" to "an LHR facility."

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the March 6, 2026, issue of the Texas Register (51 TexReg 1364). The Department requested public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. The public comment period closed on April 6, 2026.

The Department received comments from one interested party in response to the required summary of the proposed rules, which was posted on the Department's website and distributed on February 19, 2026, the same day that the proposed rules were filed with the Texas Register , but before the official publication of the proposed rules and the official start of the public comment period. The Department did not receive any comments from interested parties on the published proposed rules during the official public comment period.

Comments in Response to the Posted Summary

Comment: The first comment, submitted by an individual, was in favor of the proposed rules. The comment requested that the "postings" remain visible indicating the potential risks. This commentor also requested that individuals performing laser hair removal be licensed and certified in the state in which those individuals perform procedures.

Department Response: The Department appreciates this comment in support of the proposed rules. In its review of this comment, the Department observes that (1) it is not clear which section of the rule package the comment refers to in regards to "postings," as this term does not appear in the proposed rules; and (2) all individuals performing laser hair removal procedures in the state of Texas must be licensed and certified (subject to certain specific exceptions). Thus, the Department did not make any changes to the proposed rules because of this comment.

COMMISSION ACTION

At its meeting on May 20, 2026, the Commission adopted the proposed rules as published in the Texas Register.

SUBCHAPTER A. GENERAL PROVISIONS

16 TAC §118.3

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement that chapter and any other law establishing a program regulated by the Department. The adopted rules are also adopted under 16 TAC, Chapter 118. The statutory provisions affected by the adopted rules are those set forth in Health and Safety Code, Chapter 401. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is Senate Bill 748, 89th Legislature, Regular Session (2025).

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 June 10, 2026.

TRD-202602368

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 6, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER B. LASER HAIR REMOVAL FACILITY

16 TAC §118.12, §118.13

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement that chapter and any other law establishing a program regulated by the Department. The adopted rules are also adopted under 16 TAC, Chapter 118. The statutory provisions affected by the adopted rules are those set forth in Health and Safety Code, Chapter 401. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is Senate Bill 748, 89th Legislature, Regular Session (2025).

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 June 10, 2026.

TRD-202602369

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 6, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER C. LASER HAIR REMOVAL INDIVIDUAL CERTIFICATION

16 TAC §§118.26, 118.28, 118.29

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement that chapter and any other law establishing a program regulated by the Department. The adopted rules are also adopted under 16 TAC, Chapter 118. The statutory provisions affected by the adopted rules are those set forth in Health and Safety Code, Chapter 401. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is Senate Bill 748, 89th Legislature, Regular Session (2025).

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 June 10, 2026.

TRD-202602370

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 6, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER F. LASER HAIR REMOVAL DEVICES

16 TAC §118.50

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement that chapter and any other law establishing a program regulated by the Department. The adopted rules are also adopted under 16 TAC, Chapter 118. The statutory provisions affected by the adopted rules are those set forth in Health and Safety Code, Chapter 401. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is Senate Bill 748, 89th Legislature, Regular Session (2025).

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 June 10, 2026.

TRD-202602371

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 6, 2026

For further information, please call: (512) 463-7750


SUBCHAPTER H. FEES

16 TAC §118.70

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement that chapter and any other law establishing a program regulated by the Department. The adopted rules are also adopted under 16 TAC, Chapter 118. The statutory provisions affected by the adopted rules are those set forth in Health and Safety Code, Chapter 401. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is Senate Bill 748, 89th Legislature, Regular Session (2025).

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 June 10, 2026.

TRD-202602372

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Effective date: July 1, 2026

Proposal publication date: March 6, 2026

For further information, please call: (512) 463-7750