TITLE 22. EXAMINING BOARDS

PART 8. TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD

CHAPTER 153. RULES RELATING TO PROVISIONS OF THE TEXAS APPRAISER LICENSING AND CERTIFICATION ACT

The Texas Appraiser Licensing and Certification Board (TALCB) proposes amendments to 22 TAC §153.5, Fees.

The proposed amendments to §153.5 remove extraneous language for greater clarity and the ability for users to submit payment to the agency through an online process.

Kathleen Santos, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Santos also has determined that for each year of the first five years the section as proposed is in effect, the public benefit anticipated as a result of enforcing the section will be greater accuracy and clarity in the rules.

Growth Impact Statement:

For each year of the first five years the proposed amendments are in effect the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation; and

-increase the number of individuals subject to the rule's applicability.

For each year of the first five years the proposed amendments are in effect, there is no anticipated impact on the state's economy.

The Board requests comments on the proposal, including information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, from any person required to comply with the proposal or any other interested person, which may be submitted through the online comment submission form at https://www.talcb.texas.gov/agency-information/rules-and-laws/comment-on-proposed-rules, to Kathleen Santos, General Counsel, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@talcb.texas.gov. The deadline for comments is 30 days after publication in the Texas Register .

The amendments are proposed under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules related certifying or licensing an appraiser or appraiser trainee and qualifying education and experience required for certifying or licensing an appraiser or appraiser trainee that are consistent with applicable federal law and guidelines recognized by the Appraiser Qualifications Board (AQB); §1103.152, which authorizes TALCB to prescribe qualifications for appraisers that are consistent with the qualifications established by the AQB, §1103.153, which authorizes TALCB to adopt rules relating to the requirements for approval of a provider or course for qualifying or continuing education, and §1103.156 which authorizes TALCB to establish reasonable fees to administer Chapter 1103, Texas Occupations Code.

The statute affected by these amendments is Chapter 1103, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§ 153.5. Fees.

(a) The Board shall charge and the Executive Director shall collect the following fees:

(1) Effective January 1, 2022:

(A) a fee of $560 for an application, reinstatement, or timely renewal of a certified general appraiser license;

(B) a fee of $460 for an application, reinstatement, or timely renewal of a certified residential appraiser license;

(C) a fee of $400 for an application, reinstatement, or timely renewal of a licensed residential appraiser license; and

(D) a fee of $250 for an application, reinstatement, or timely renewal of an appraiser trainee license;

(2) a fee equal to 1-1/2 times the timely renewal fee for the late renewal of a license within 90 days of expiration;

(3) a fee equal to two times the timely renewal fee for the late renewal of a license more than 90 days but less than six months after expiration;

(4) a fee of $250 for nonresident license;

(5) the national registry fee in the amount charged by the Appraisal Subcommittee;

(6) an application fee for licensure by reciprocity in the same amount as the fee charged for a similar license issued to a Texas resident;

(7) a fee of $200 for an extension of time to complete required continuing education;

(8) a fee of $50 to request a return to active status;

(9) a fee of $50 for evaluation of an applicant's fitness;

(10) an examination fee as provided in the Board's current examination administration agreement;

(11) a fee of $100 to request a voluntary appraiser experience review;

(12) the fee charged by the Federal Bureau of Investigation, the Texas Department of Public Safety or other authorized entity for fingerprinting or other service for a national or state criminal history check in connection with a license application;

(13) a base fee of $50 for approval of an ACE course;

(14) a content review fee of $5 per classroom hour for approval of an ACE course;

(15) a course approval fee of $50 for approval of an ACE course currently approved by the AQB or another state appraiser regulatory agency;

(16) a one-time offering course approval fee of $25 for approval of a 2-hour ACE course to be offered in-person only one time;

(17) a fee of $200 for an application for an ACE provider approval or subsequent approval; and

(18) any fee required by the Department of Information Resources for establishing and maintaining online applications or as a subscription or convenience fee for use of an online payment system.

(b) [ Fees must be submitted in U.S. funds payable to the order of the Texas Appraiser Licensing and Certification Board. ] Fees are not refundable once an application has been accepted for filing. Persons who have submitted a payment that has been dishonored, and who have not made good on that payment within 30 days, for whatever reason, must submit all replacement fees in the form of a cashier's check, money order, or online credit card payment.

(c) Licensing fees are waived for members of the Board staff who must maintain a license for employment with the Board only and are not also using the license for outside employment.

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 August 11, 2026.

TRD-202603402

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Earliest possible date of adoption: September 27, 2026

For further information, please call: (512) 936-3088

CHAPTER 159. RULES RELATING TO THE PROVISIONS OF THE TEXAS APPRAISAL MANAGEMENT COMPANY REGISTRATION AND REGULATION ACT

The Texas Appraiser Licensing and Certification Board (TALCB) proposes amendments to 22 TAC §§159.1, Definitions; 159.3, Appraisal Management Company Advisory Committee; 159.4, Exemptions; 159.52, Fees; 159.101, Use of Business Name; 159.102, Eligibility for Registration; Ownership; 159.104, Primary Contact; Appraiser Contact; Controlling Person; Contact Information; 159.109, Inactive Status; 159.161, Appraiser Panel; 159.201, Guidelines for Disciplinary Action; and 159.203, Sanctions Guidelines.

The proposed amendments to Chapter 159 are made following TALCB's quadrennial rule review for this Chapter. Additionally, the proposed amendments to §159.1, Definitions clarify the definition of "appraisal panel" under the AMC Act.

The proposed amendments to §159.3 extend the date for the AMC advisory committee to continue to exist to coincide with the next deadline to complete the quadrennial rule review for Chapter 159.

The proposed amendments to §159.4 add a requirement for specific disclaimer language to be utilized by a person seeking to become registered under the AMC Act when soliciting prospective panelists.

The proposed amendments to §159.52 remove extraneous language for greater clarity in light of the ability for users to submit payment to the agency through an online process.

The proposed amendments to §§159.101 and 159.161(a) are made as a result of the agency's license management system project. Because of this project, users will be able to provide information to the agency through an online process, rather than by submitting a paper form. As a result, the language is clarified to reflect this change.

The proposed amendments to §159.102 clarify terms utilized to determine eligibility for registration.

The proposed amendments to §§159.104 and 159.109 are made for readability and greater clarity.

The proposed amendments to §159.161(b) are made to more clearly identify when an AMC is considered to have made an assignment to an appraiser.

The proposed amendments to §159.201 clarify an AMC's controlling person is subject to disciplinary action under the AMC Act and adds language allowing the Board to take disciplinary action or deny issuing or renewing a license for an act relating to the business of appraisal management that warrants suspension or revocation.

Finally, the proposed amendments to §159.203 more clearly defines instances of minor deficiencies and serious deficiencies for the purposes of TALCB's sanctions guidelines.

Kathleen Santos, General Counsel, has determined that for the first five-year period the proposed amendments are in effect, there will be no fiscal implications for the state or units of local government as a result of enforcing or administering the proposed amendments. There is no adverse economic impact anticipated for local or state employment, rural communities, small businesses, or micro businesses as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact statement or Regulatory Flexibility Analysis is required.

Ms. Santos has also determined that for each year of the first five years the proposed amendments are in effect the public benefits anticipated as a result of enforcing the proposed amendments will be greater clarity and consistency in the rules.

Growth Impact Statement:

For each year of the first five years the proposed amendments are in effect the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation; and

-increase the number of individuals subject to the rule's applicability.

For each year of the first five years the proposed amendments are in effect, there is no anticipated impact on the state's economy.

The Board requests comments on the proposal, including information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, from any person required to comply with the proposal or any other interested person, which may be submitted through the online comment submission form at https://www.talcb.texas.gov/agency-information/rules-and-laws/comment-on-proposed-rules, to Kathleen Santos, General Counsel, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@talcb.texas.gov. The deadline for comments is 30 days after publication in the Texas Register .

The amendments are proposed under Texas Occupations Code §1104.151, which authorizes TALCB to adopt rules necessary to administer the provisions of Chapter 1104, Texas Occupations Code.

The statute affected by these amendments is Chapter 1104, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§ 159.1. Definitions.

(a) AMC--Appraisal management company.

(b) AMC Act--Chapter 1104, Texas Occupations Code, Texas Appraisal Management Company Registration and Regulation Act.

(c) Administrative law judge--A judge employed by the State Office of Administrative Hearings (SOAH).

(d) Advertising--A written or oral statement or communication by or on behalf of an AMC that induces or attempts to induce a member of the public to use the services of the AMC, including but not limited to all publications, radio or television broadcasts, all electronic media including email, text messages, social networking websites, and the Internet, business stationery, business cards, signs and billboards.

(e) Applicant--A person seeking to become registered or renew a registration under the AMC Act.

(f) Appraisal firm--An entity that employs appraisers on an exclusive basis and receives compensation for performing appraisals and issuing appraisal reports in its own name.

(h) [ (g) ] Appraiser contact--A person designated by an AMC pursuant to §1104.103(b)(6) of the AMC Act to respond to and communicate with appraisers on the AMC's appraisal panel regarding appraisal assignments.

(i) [ (h) ] Board--The Texas Appraiser Licensing and Certification Board.

(j) [ (i) ] Executive Director--The Executive Director of the Board.

(k) [ (j) ] Day--A calendar day unless clearly indicated otherwise.

(l) [ (k) ] Federally Regulated Appraisal Management Company--An appraisal management company as defined in §1104.003(b) of the AMC Act.

(m) [ (l) ] License--The whole or a part of any Board permit, certificate, approval, registration or similar form of permission required by Chapter 1103 or 1104, Texas Occupations Code.

(n) [ (m) ] License holder--A person licensed or registered by the Board under the AMC Act.

(o) [ (n) ] Party--The Board and each person named or admitted as a party.

(p) [ (o) ] Person--Any individual, partnership, corporation, or legal entity.

(q) [ (p) ] Primary contact--A person who meets the definition of "controlling person" in §1104.003 of the AMC Act and is designated by an AMC pursuant to §1104.104 of the AMC Act as the primary contact for all communication between the Board and the AMC.

(r) [ (q) ] Respondent--Any person subject to the jurisdiction of the Board, registered or unregistered, against whom any complaint has been made.

(s) [ (r) ] SOAH--State Office of Administrative Hearings.

(t) [ (s) ] USPAP--Uniform Standards of Professional Appraisal Practice.

§ 159.3. Appraisal Management Company Advisory Committee.

(a) A quorum consists of three members of the committee.

(b) The committee may meet at the call of the chair or upon the request of a majority of its members. The committee shall meet at the request of the Board.

(c) Unless state law or Board rules require otherwise, meetings shall be conducted in accordance with Robert's Rules of Order.

(d) At the end of a term, members shall continue to serve until their successors are qualified.

(e) The committee is automatically abolished on December 31, 2030 [ 2026 ], unless the Board subsequently establishes a different date.

§ 159.4. Exemptions.

(a) This chapter does not apply to appraisal management services provided:

(1) for the appraisal of:

(A) commercial property; or

(B) residential properties of more than four units; or

(2) by persons exempted under §1104.004, the AMC Act.

(b) For the purposes of §1104.004 of the AMC Act:

(1) a person exclusively employs appraisers on an employer and employee basis for the performance of appraisals if the person does not also employ appraisers as independent contractors or under any other arrangement;

(2) a person employs not more than 15 appraisers on an exclusive basis as independent contractors for the performance of appraisals if:

(A) the person prohibits the independent contractors from performing appraisals for others; and

(B) the person does not employ more than 15 appraisers as independent contractors at any time;

(3) a subsidiary of a financial institution is not a department or unit within the institution;

(4) an AMC that requires an employee of the AMC who is an appraiser who provided no significant real property appraisal assistance to sign an appraisal that is completed by another appraiser who contracts with the AMC, is not exempt from the registration requirement or other requirements of the AMC Act; and

(5) an AMC has an appraisal panel of not more than 15 appraisers at all times during a calendar year if:

(A) the AMC does not have more than 15 appraisers on its panel at any time; and

(B) an appraiser who has been removed from the AMC's panel is not added back to the panel within 12 months after the date of removal.

(c) A person may solicit prospective panelists in anticipation of acting as an AMC without being registered as an AMC, provided that it is registered prior to forming a panel, accepting an appraisal assignment, or performing any other act constituting an appraisal management service. A person soliciting prospective panelists under this subsection must include the disclaimer set out in the subsection (d).

(e) [ (d) ] For the purposes of the AMC Act, a property is located in Texas if it is located wholly or partly in the state.

§ 159.52. Fees.

(a) The Board will charge and the Executive Director will collect the following fees:

(1) a fee of $3,300 for an application for a two-year registration;

(2) a fee of $3,000 for a timely renewal of a two-year registration;

(3) a fee equal to 1-1/2 times the timely renewal fee for the late renewal of a registration within 90 days of expiration; a fee equal to two times the timely renewal fee for the late renewal of a registration more than 90 days but less than six months after expiration;

(4) the national registry fee in the amount charged by the Appraisal Subcommittee for the AMC registry;

(5) a fee of $500 for untimely payment of the AMC national registry fee;

(6) a fee of $10 for each appraiser on a panel at the time of renewal of a registration;

(7) a fee of $5 to add an appraiser to a panel in the Board's records;

(8) a fee of $5 for the termination of an appraiser from a panel;

(9) a fee of $50 to return to active status;

(10) a fee of $50 for evaluation of an owner or primary contact's background history not submitted with an original application or renewal;

(11) any fee required by the Department of Information Resources for establishing and maintaining online applications or as a subscription or convenience fee for use of an online payment system; and

(12) a fee in the amount necessary to administer section 1104.052(c) of the AMC Act.

(b) [ Fees must be submitted in U.S. funds payable to the order of the Texas Appraiser Licensing and Certification Board. ] Fees are not refundable once an application has been accepted for filing. Persons who have submitted a payment that has been dishonored, and who have not made good on that payment within 30 days, for whatever reason, must submit all replacement fees in the form of a cashier's check, money order, or online credit card payment.

(c) AMCs registered with the Board must pay any annual registry fee as required under federal law. All registry fees collected by the Board will be deposited to the credit of the appraiser registry account in the general revenue fund. The Board will send the fees to the Appraisal Subcommittee as required by federal law.

§ 159.101. Use of Business Name.

A license holder must notify the Board, using a process acceptable to the [ on a form approved by the ] Board, within 30 days after the license holder starts or stops using a business name other than the name in which the license holder is registered.

§ 159.102. Eligibility for Registration; Ownership.

(a) If an owner of the applicant has had a license to act as an appraiser denied, revoked, or surrendered, the Board may require the applicant to provide information concerning whether the owner's license was denied, revoked, or surrendered for a nonsubstantive reason as determined by the Board. For the purposes of §1104.102 of the AMC Act and this section "denied, revoked, or surrendered" include refused or cancelled.

(b) For purposes of this Chapter, a nonsubstantive reason may include, but is not limited to:

(1) mistake; or

(2) failure to comply with technical requirements for renewal.

§ 159.104. Primary Contact; Appraiser Contact; Controlling Person; Contact Information.

(a) Contact Information. For purposes of conducting business with the Board and receiving correspondence, service of documents, or notices from the Board, each applicant or license holder must provide the Board with the following contact information for the applicant or license holder, its primary contact and appraiser contact:

(1) mailing address;

(2) phone number; and

(3) email address.

(b) Designation of additional controlling persons.

(1) An applicant or license holder may designate additional controlling persons:

(A) on the applicant's initial license application or renewal form; or

(B) by filing a request using a process acceptable to the Board.

(2) An applicant or license holder must notify the Board within 10 days if a person designated as an additional controlling person ceases to serve in that role using a process acceptable to the Board.

(c) An applicant or license holder must give the Board written notice of any change to the contact information for the applicant or license holder, its primary contact, appraiser contact, or additional controlling persons, if any, within 10 days of the change, using a process acceptable to the Board.

(d) If a license holder's primary contact or appraiser contact changes, the license holder must give the Board written notice of the change using a process acceptable to the Board, including all information required by this section and §1104.103(b)(4) and (6) of the AMC Act, and, if appropriate, documentation that the person is qualified to serve under §1104.104(b) of the AMC Act, within 10 days of the change.

(e) A license holder must give the Board written notice using a process acceptable to the Board within 10 days if its primary contact or appraiser contact ceases to serve in that role and a qualified replacement is not immediately named. If a license holder's primary contact or appraiser contact ceases to serve in that role and the license holder does not give the Board written notice of a replacement, the license holder will be placed on inactive status.

(f) A primary contact who assumes that role during the term of the registration must provide the Board written consent to a criminal history background check, as required by §1104.102 of the AMC Act. If the person does not satisfy the Board's moral character requirements, the Board will remove the person from its records and the license holder will be placed on inactive status. Such a decision by the Board may be reviewed and reconsidered by the Executive Director if the license holder submits a written request for reconsideration within 10 days of notice that the person does not qualify to serve as primary contact. The license holder will remain on inactive status while the request for reconsideration is pending.

(g) The appraiser contact must hold an active, current license issued by an appraiser regulatory agency within the jurisdiction of the Appraisal Subcommittee.

(h) The Board will send all correspondence and serve all required notices and documents by sending such items to the mailing or email address of the applicant's or license holder's primary contact as shown in the Board's records.

(i) If an applicant or license holder fails to update the contact information for its primary contact, appraiser contact, or additional controlling persons, if any, the contact information for these individuals is the last known contact information provided to the Board and shown in the Board's records.

§ 159.109. Inactive Status.

(a) To elect to be placed on inactive status, a license holder must do the following:

(1) file a request for inactive status using a process acceptable to the Board; and

(2) confirm in writing to the Board that the license holder has given written notice of its election to go inactive to all appraisers listed on the license holder's appraiser panel at least 30 days prior to filing the request for inactive status.

(b) In order to return from inactive status to active status, a license holder must submit a request and proof of compliance with all outstanding requirements for active registration using a process acceptable to the Board.

(c) A license holder that has elected or been placed on inactive status may not engage in any activity for which registration is required until an active registration has been issued by the Board.

(d) The Board's record of the appraiser panel of a license holder on inactive status will remain in place.

(e) A license holder may renew on inactive status. To renew on inactive status, a license holder must satisfy:

(1) all requirements under subsection (a) of this section; and

(2) all renewal requirements for an active registration under §159.108 of this chapter.

§ 159.161. Appraiser Panel.

(b) [ (a) ] If an appraiser is not employed by the AMC or already a member of the AMC's panel, an AMC must add the appraiser to the AMC's panel no later than the date on which the AMC makes an assignment to the appraiser. An AMC is considered to have made an assignment to the appraiser when the appraisal is assigned in the AMC's records.

(c) [ (b) ] To add an appraiser to a panel, the AMC must initiate the request using a process acceptable to the Board, including payment of any required fee(s).

(d) [ (c) ] An appraiser or an AMC may terminate the appraiser's membership on a panel by submitting a termination notice using a process acceptable to the Board electronically through the Board's online panel management system, including payment of any required fee.

(e) [ (d) ] If an appraiser terminates his or her membership on a panel, the appraiser must immediately notify the AMC of the termination. If an AMC terminates an appraiser's membership on a panel, the AMC must immediately notify the appraiser of the termination.

(f) [ (e) ] If an appraiser's license is suspended or revoked, the Board will remove the appraiser from any panels on which the appraiser is listed with no fee charged to the AMC or the appraiser.

(g) [ (f) ] If an appraiser's license expires, the Board will:

(1) change the appraiser's license status the month following expiration of the license; and

(2) remove the appraiser from any panels on which the appraiser is listed with no fee charged to the AMC or the appraiser once the license can no longer be renewed.

§ 159.201. Guidelines for Disciplinary Action.

(a) The Board may take disciplinary action, or deny issuing or renewing a license to an applicant, any time it is determined that the person applying for, renewing, or holding the license , [ or ] the AMC's primary contact , or a controlling person of the AMC :

(1) disregards or violates a provision of the AMC Act or Board rules;

(2) is convicted of a felony;

(3) fails to notify the Board not later than the 30th day after the date of the final conviction if the person, in a court of this or another state or in a federal court, has been convicted of or entered a plea of guilty or nolo contendere to a felony or a criminal offense involving fraud or moral turpitude;

(4) fails to notify the Board not later than the 30th day after the date of incarceration if the person, in this or another state, has been incarcerated for a criminal offense involving fraud or moral turpitude;

(5) fails to notify the Board of the following with regard to any professional or occupational license held by the person in Texas or another jurisdiction not later than the 30th day after the date:

(A) disciplinary action becomes final against the person; or

(B) the person voluntarily surrenders any professional or occupational license;

(6) fails to require appraisal assignments be completed in compliance with the USPAP edition in effect at the time of the appraisal or appraisal practice;

(7) acts or holds any person out as a registered AMC under the AMC Act or another state's act when not so licensed or certified;

(8) accepts payment for appraisal management services but fails to deliver the agreed service in the agreed upon manner;

(9) refuses to refund payment received for appraisal management services when he or she has failed to deliver the appraiser service in the agreed upon manner;

(10) accepts payment for services contingent upon a minimum, maximum, or pre-agreed value estimate;

(11) offers to perform appraisal management services or agrees to perform such services when employment to perform such services is contingent upon a minimum, maximum, or pre-agreed value estimate;

(12) makes a material misrepresentation or omission of material fact;

(13) has had a registration as an AMC revoked, suspended, or otherwise acted against by any other jurisdiction for an act which is an offense under Texas law;

(14) procures a registration pursuant to the AMC Act by making false, misleading, or fraudulent representation;

(15) has had a final civil judgment entered against him or her on any one of the following grounds:

(A) fraud;

(B) intentional or knowing misrepresentation; or

(C) grossly negligent misrepresentation in the performance [ making ] of real estate appraiser or appraisal management services;

(16) fails to make good on a payment issued to the Board within 30 days after the Board has mailed a request for payment by certified mail to the license holder's primary contact as reflected in the Board's records;

(17) knowingly or willfully engages in false or misleading conduct or advertising with respect to client solicitation;

(18) uses any title, designation, initial or other insignia or identification that would mislead the public as to that person's credentials, qualifications, competency, or ability to provide appraisal management services;

(19) requires an appraiser to pay for or reimburse the AMC for a criminal history check;

(20) fails to comply with a final order of the Board; or

(21) fails to answer all inquiries concerning matters under the jurisdiction of the Board within 20 days of notice to said person's or primary contact's address of record, or within the time period allowed if granted a written extension by the Board ; [ . ]

(b) The Board has discretion in determining the appropriate penalty for any violation under subsection (a) of this section.

(c) The Board may probate a penalty or sanction, and may impose conditions of the probation, including, but not limited to:

(1) the type and scope of appraisal management practice;

(2) requirements for additional education by the AMC's controlling persons;

(3) monetary administrative penalties; and

(4) requirements for reporting appraisal management activity to the Board.

(d) A person applying for reinstatement after revocation or surrender of a registration must comply with all requirements that would apply if the registration had instead expired.

(e) The provisions of this section do not relieve a person from civil liability or from criminal prosecution under the AMC Act or under the laws of this State.

(f) The Board may not investigate under this section a complaint submitted more than four years after the date on which the alleged violation occurred involving the AMC that is the subject of the complaint.

(g) Except as provided by Texas Penal Code §32.32(d), there will be no undercover or covert investigations conducted by authority of the AMC Act.

(h) The Board reports to the Appraisal Subcommittee any disciplinary action taken by the Board against an AMC required to register under the AMC Act.

§ 159.203. Sanctions Guidelines.

In determining the proper disposition of a formal complaint pending as of or filed after the effective date of this section, and subject to the maximum penalties authorized under Chapter 1104, Texas Occupations Code, staff, the administrative law judge in a contested case hearing and the Board shall consider the following sanctions guidelines and list of non-exclusive factors as demonstrated by the evidence in the record of a contested case proceeding.

(1) For the purposes of these sanctions guidelines:

(A) An AMC will not be considered to have had a prior warning letter, contingent dismissal or discipline if that prior warning letter, contingent dismissal or discipline occurred more than ten years ago;

(B) A prior warning letter, contingent dismissal or discipline given less than ten years ago will not be considered unless the Board took final action against the AMC before the date of the incident that led to the subsequent disciplinary action;

(C) Prior discipline is defined as any sanction, including an administrative penalty, received under a Board final or agreed order;

(D) A violation refers to a violation of any provision of the AMC Act or Board rules;

(E) "Minor deficiencies" is defined as violations of the AMC Act or Board rules which do not : [ call into question the qualification of the AMC for licensure in Texas; ]

(F) "Serious deficiencies" is defined as violations of the Act or Board rules which : [ do call into question the qualification of the AMC for licensure in Texas; ]

(G) "Remedial measures" include training, auditing, or any combination thereof; and

(H) The terms of a contingent dismissal agreement will be in writing and agreed to by all parties. Staff may dismiss the complaint with a non-disciplinary warning upon written agreement that the Respondent will complete all remedial measures within the agreed-upon timeframe. If the Respondent fails to meet the deadlines in the agreement, the Respondent's license or certification will be automatically set to inactive status until the Respondent completes the remedial measures set forth in the agreement.

(2) List of factors to consider in determining proper disposition of a formal complaint:

(A) Whether the Respondent has previously received a warning letter or contingent dismissal, and if so, the similarity of facts or violations in that previous complaint to the facts or violations in the instant complaint matter;

(B) Whether the Respondent has previously been disciplined;

(C) If previously disciplined, the nature of the discipline, including:

(i) Whether it concerned the same or similar violations or facts;

(ii) The nature of the disciplinary sanctions imposed;

(iii) The length of time since the previous discipline;

(D) The difficulty or complexity of the incident at issue;

(E) Whether the violations found were of a negligent, grossly negligent or a knowing or intentional nature;

(F) Whether the violations found involved a single appraisal or instance of conduct or multiple appraisals or instances of conduct;

(G) To whom were the appraisal report(s) or the conduct directed, with greater weight placed upon appraisal report(s) or conduct directed at:

(i) A financial institution or their agent, contemplating a lending decision based, in part, on the appraisal report(s) or conduct at issue;

(ii) The Board;

(iii) A matter which is actively being litigated in a state or federal court or before a regulatory body of a state or the federal government;

(iv) Another government agency or government sponsored entity, including, but not limited to, the United States Department of Veteran's Administration, the United States Department of Housing and Urban Development, the State of Texas, Fannie Mae, and Freddie Mac;

(v) A consumer contemplating a real property transaction involving the consumer's principal residence;

(H) Whether Respondent's violations caused any harm, including financial harm, and the amount of such harm;

(I) Whether Respondent acknowledged or admitted to violations and cooperated with the Board's investigation prior to any contested case hearing;

(J) The business operating history of the AMC, including:

(i) The size of the AMC's appraiser panel;

(ii) The length of time Respondent has been licensed as an AMC in Texas;

(iii) The length of time the AMC has been conducting business operations, in any jurisdiction;

(iv) The nature and extent of any remedial measures and sanctions the Respondent had received related to the areas in which violations were found; and

(v) Respondent's affiliation with other business entities;

(K) Whether Respondent can improve the AMC's practice through the use of remedial measures; and

(L) Whether Respondent has voluntarily completed remedial measures prior to the resolution of the complaint.

(3) The sanctions guidelines contained herein shall be employed in conjunction with the factors listed in paragraph (2) of this section to assist in reaching the proper disposition of a formal complaint:

(A) 1st Time Discipline Level 1--violations of the AMC Act or Board rules which evidence minor deficiencies will result in one of the following outcomes:

(i) Dismissal;

(ii) Dismissal with non-disciplinary warning letter;

(iii) Contingent dismissal with remedial measures.

(B) 1st Time Discipline Level 2--violations of the AMC Act or Board rules which evidence serious deficiencies will result in one of the following outcomes:

(i) Contingent dismissal with remedial measures;

(ii) A final order which imposes one or more of the following:

(I) Remedial measures;

(II) Required adoption and implementation of written, preventative policies or procedures;

(III) A probationary period with provisions for monitoring the AMC;

(IV) Monitoring and/or preapproval of AMC panel removals for a specified period of time;

(V) Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;

(VI) Minimum of $1,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.

(C) 1st Time Discipline Level 3--violations of the AMC Act or Board rules which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:

(i) A period of suspension;

(ii) A revocation;

(iii) Remedial measures;

(iv) Required adoption and implementation of written, preventative policies or procedures;

(v) A probationary period with provisions for monitoring the AMC;

(vi) Monitoring and/or preapproval of AMC panel removals for a specified period of time;

(vii) Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;

(viii) Minimum of $2,500 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.

(D) 2nd Time Discipline Level 1--violations of the AMC Act or Board rules which evidence minor deficiencies will result in one of the following outcomes:

(i) Dismissal;

(ii) Dismissal with non-disciplinary warning letter;

(iii) Contingent dismissal with remedial measures;

(iv) A final order which imposes one or more of the following:

(I) Remedial measures;

(II) Required adoption and implementation of written, preventative policies or procedures;

(III) A probationary period with provisions for monitoring the AMC;

(IV) Monitoring and/or preapproval of AMC panel removals for a specified period of time;

(V) Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;

(VI) Minimum of $1,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.

(E) 2nd Time Discipline Level 2--violations of the AMC Act or Board rules which evidence serious deficiencies will result in a final order which imposes one or more of the following:

(i) A period of suspension;

(ii) A revocation;

(iii) Remedial measures;

(iv) Required adoption and implementation of written, preventative policies or procedures;

(v) A probationary period with provisions for monitoring the AMC;

(vi) Monitoring and/or preapproval of AMC panel removals for a specified period of time;

(vii) Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;

(viii) Minimum of $2,500 in administrative penalties per act or omission which constitutes a violation(s) of AMC Act or Board rules; each day of a continuing violation is a separate violation.

(F) 2nd Time Discipline Level 3--violations of the AMC Act or Board rules which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:

(i) A period of suspension;

(ii) A revocation;

(iii) Remedial measures;

(iv) Required adoption and implementation of written, preventative policies or procedures;

(v) A probationary period with provisions for monitoring the AMC;

(vi) Monitoring and/or preapproval of AMC panel removals for a specified period of time;

(vii) Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;

(viii) Minimum of $4,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.

(G) 3rd Time Discipline Level 1--violations of the AMC Act or Board rules which evidence minor deficiencies will result in a final order which imposes one or more of the following:

(i) A period of suspension;

(ii) A revocation;

(iii) Remedial measures;

(iv) Required adoption and implementation of written, preventative policies or procedures;

(v) A probationary period with provisions for monitoring the AMC;

(vi) Monitoring and/or preapproval of AMC panel removals for a specified period of time;

(vii) Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;

(viii) Minimum of $2,500 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.

(H) 3rd Time Discipline Level 2--violations of the AMC Act or Board rules which evidence serious deficiencies will result in a final order which imposes one or more of the following:

(i) A period of suspension;

(ii) A revocation;

(iii) Remedial measures;

(iv) Required adoption and implementation of written, preventative policies or procedures;

(v) A probationary period with provisions for monitoring the AMC;

(vi) Monitoring and/or preapproval of AMC panel removals for a specified period of time;

(vii) Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;

(viii) Minimum of $4,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.

(I) 3rd Time Discipline Level 3--violations of the AMC Act or Board rules which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:

(i) A revocation; and

(ii) Minimum of $7,000 in administrative penalties per act or omission which constitutes a violation(s) of Board Rules, or the AMC Act; each day of a continuing violation is a separate violation.

(J) 4th Time Discipline--violations of the AMC Act or Board rules will result in a final order which imposes one or more of the following:

(i) A revocation; and

(ii) $10,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.

(K) Unlicensed AMC activity will result in a final order which imposes a $10,000 in administrative penalties per unlicensed AMC activity; each day of a continuing violation is a separate violation.

(4) In addition, staff may recommend any or all of the following:

(A) Reducing or increasing the recommended sanction or administrative penalty for a complaint based on documented factors that support the deviation, including but not limited to those factors articulated under paragraph (2) of this section;

(B) Probating all or a portion of any remedial measure, sanction, or administrative penalty for a period not to exceed three years;

(C) Requiring additional reporting requirements;

(D) Payment of costs expended by the Board associated with the investigation, and if applicable, a contested case, including legal fees and administrative costs; and

(E) Such other recommendations, with documented support, as will achieve the purposes of the AMC Act or Board rules.

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 August 11, 2026.

TRD-202603403

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Earliest possible date of adoption: September 27, 2026

For further information, please call: (512) 936-3088

PART 10. TEXAS FUNERAL SERVICE COMMISSION

CHAPTER 206. ANATOMICAL FACILITIES, NON-TRANSPLANT ANATOMICAL DONATION ORGANIZATIONS, AND WILLED BODY PROGRAMS

The Texas Funeral Service Commission (Commission or TFSC) proposes new §206.16, Standard for Bloodborne Pathogen Screening of Anatomical Donors, at Title 22, Texas Administrative Code (TAC), Chapter 206, regarding Anatomical Facilities, Non-Transplant Anatomical Donation Organizations, and Willed Body Programs.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES. The rules under 22 TAC Chapter 206 implement Texas Health and Safety Code, Chapter 691, Donation of Bodies and Anatomical Specimens, and related provisions of Chapter 692A, Health and Safety Code, and Chapter 651, Occupations Code.

The proposed rule establishes minimum health and safety standards for the screening and use of anatomical donors in order to reduce the risk of occupational exposure to bloodborne pathogens, while recognizing the effectiveness of proper embalming and formaldehyde fixation in reducing infectious risk. Bodies and derived specimens that are used or distributed in an unembalmed, fresh, or fresh-frozen state present a materially different infection-control profile than adequately embalmed donors. The proposed rule sets a risk-based standard: it requires serologic bloodborne pathogen screening for fresh and fresh-frozen donors; it does not require serologic screening as an infection-control measure for donors used only after documented adequate formalin fixation or embalming; and it requires standard precautions regardless of testing status. The proposed rule is necessary to protect the students, faculty, licensees, and other personnel who handle anatomical donations, to establish consistent donor-eligibility and documentation practices across the entities the Commission oversees, and to align the Commission's rules with accepted medical and laboratory standards.

The proposed rule was developed and recommended by the State Anatomical Advisory Committee. The Advisory Committee considered the proposed rule at its meetings on July 8 and 29, 2026, and voted and recommended that the proposed rule be published in the Texas Register for public comment.

SECTION-BY-SECTION SUMMARY. The proposed rule adopts new §206.16, Standard for Bloodborne Pathogen Screening of Anatomical Donors.

Proposed subsection (a) states the purpose of the rule. Proposed subsection (b) states the applicability of the rule to all entities participating in the procurement, acceptance, storage, distribution, and use of human anatomical donations under the Commission's authority. Proposed subsection (c) defines "adequately embalmed," "fresh donor," "fresh-frozen donor," and "CLIA-certified laboratory." Proposed subsection (d) establishes screening requirements for fresh and fresh-frozen donors, including collection of blood specimens as soon after death as practicable, documentation of the postmortem interval, and serologic testing performed by a CLIA-certified or other qualified laboratory for Hepatitis B surface antigen (HBsAg), Hepatitis C antibody (anti-HCV), and HIV antigen/antibody, with nucleic acid testing (NAT) for HIV and HCV performed when available and feasible; requires that documentation of results accompany the donor or be maintained in the donor eligibility record; and prohibits distribution or use of a fresh or fresh-frozen donor for which required testing cannot be completed unless otherwise authorized by applicable law. Proposed subsection (e) provides that serologic screening is not required as an infection-control measure for donors used only after documented adequate formalin fixation or embalming, requires documentation of adequate embalming and fixation, and requires implementation of standard precautions regardless of testing status. Proposed subsection (f) provides that serologic testing is one component of donor eligibility and does not substitute for medical- and social-history review or other exclusion criteria, and requires exclusion of donors presenting known or suspected conditions posing unacceptable infectious risk, including prion diseases where applicable. Proposed subsection (g) requires each participating organization to maintain records of laboratory results, specimen collection date and time, postmortem interval when known, embalming and fixation records when applicable, and donor eligibility determinations.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT. Ms. Maria Haynes, Texas Funeral Service Commission Executive Director, has determined that for each year of the first five years the proposed rule is in effect, there are no estimated additional costs or reductions in costs to state or local government as a result of enforcing or administering the proposed rule, other than costs absorbed within the Commission's existing appropriations.

Ms. Haynes has determined that for each year of the first five years the proposed rule is in effect, there is no estimated increase or loss in revenue to the state or local government as a result of enforcing or administering the proposed rule.

LOCAL EMPLOYMENT IMPACT STATEMENT. Ms. Haynes has determined that the proposed rule will not affect a local economy, the agency is not required to prepare a local employment impact statement under Texas Government Code §2001.022.

PUBLIC BENEFITS. Ms. Haynes has determined that for each year of the first five-year period the proposed rule is in effect, the public benefit will be reduced risk of occupational exposure to bloodborne pathogens for students, faculty, licensees, and other personnel who handle anatomical donations; consistent, risk-based donor screening and eligibility practices across the entities the Commission oversees; and improved documentation supporting the safe use of anatomical donations.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH THE PROPOSAL. The proposed rule requires serologic testing (HBsAg, anti-HCV, and HIV antigen/antibody), and NAT where available and feasible, for each fresh or fresh-frozen donor, together with associated documentation and recordkeeping. Ms. Haynes has reviewed the information provided by the State Anatomical Advisory Committee, which indicates that serological testing is conducted already by willed body programs and non-transplant anatomical donation organizations, therefore, for each year of the first five-year period the proposed rule is in effect, the probable per-donor testing and documentation costs to body donation organizations that procure or distribute fresh or fresh-frozen donors, are nominal in nature. No serologic testing cost is imposed for donors used only after documented adequate embalming and formalin fixation.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES. Ms. Haynes has determined that the proposed rule will not have an adverse economic effect on small businesses, micro-businesses, or rural communities under Texas Government Code, Chapter 2006.

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT. The Commission has determined the one-for-one requirement is inapplicable since Tex. Government Code §2001.0045 excepts rules necessary to protect the health, safety, and welfare of the residents of this state.

GOVERNMENT GROWTH IMPACT STATEMENT. Pursuant to Texas Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rule. For each year of the first five years the proposed rule will be in effect, the agency has determined the following:

1. The proposed rule does not create or eliminate a government program. The proposed rule implements the anatomical-donation regulatory program transferred to the Commission by Senate Bill 2040.

2. Implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency.

4. The proposed rule does not require an increase or decrease in fees paid to the agency.

5. The proposed rule creates a new regulation. The proposed rule newly establishes a bloodborne pathogen screening and donor-eligibility standard for anatomical donors.

6. The proposed rule does not expand, limit, or repeal an existing regulation.

7. The proposed rule does not increase or decrease the number of individuals subject to the rule's applicability, because it applies to entities that participate in the procurement, acceptance, storage, distribution, and use of anatomical donations already subject to the Commission's oversight under the chapter.

8. The proposed rule does not adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT. The Texas Funeral Service Commission has determined that no private real property interests are affected by the proposed rule and the proposed rule does not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule does not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES. The Texas Funeral Service Commission is requesting public comments on the proposed rule and information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed rule. Please do not submit copyrighted, confidential, or proprietary information.

Comments on the proposed rule and responses to the request for information may be submitted by email to legal@tfsc.texas.gov; or by mail to Maria Haynes, Executive Director, Texas Funeral Service Commission, 1801 Congress Avenue, Suite 11.800, Austin, Texas 78701. The deadline for comments is 30 days after publication in the Texas Register .

STATUTORY AUTHORITY. The proposed rule is proposed under Texas Health and Safety Code, Chapter 691, including §691.022(b), which requires the Commission to adopt rules to ensure that each body and anatomical specimen is treated with respect while in the custody of the Commission or a person authorized to receive the body or specimen, and §691.022(c), which requires the Commission to adopt rules, establish procedures, and prescribe forms necessary to administer and enforce the chapter; and §691.034, which governs the regulation and registration of persons and institutions using bodies and anatomical specimens and requires the Commission to adopt rules and procedures necessary to administer registration, inspection, and verification. The proposed rule is also proposed under Chapter 692A, Health and Safety Code, and under Chapter 651, Occupations Code, including §651.005, which directs the Commission to regulate willed body programs, non-transplant anatomical donation organizations, and anatomical facilities as provided by Chapter 691.

The statutory provisions affected by the proposed rule are those set forth in Texas Health and Safety Code, Chapter 691, and Chapter 692A; and Texas Occupations Code, Chapter 651.

The legislation that enacted the statutory authority under which the proposed rule is proposed to be adopted is Senate Bill 2040, 88th Legislature, Regular Session (2023).

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 August 17, 2026.

TRD-202603532

Maria Haynes

Interim Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: September 27, 2026

For further information, please call: (512) 936-2488

The Texas Funeral Service Commission (Commission or TFSC) proposes new §206.18, Registration and Disposition of Commercially Acquired Plastinated Human Remains, at Title 22, Texas Administrative Code (TAC), Chapter 206, regarding Anatomical Facilities, Non-Transplant Anatomical Donation Organizations, and Willed Body Programs.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES. The rules under 22 TAC Chapter 206 implement Texas Health and Safety Code, Chapter 691, Donation of Bodies and Anatomical Specimens, and related provisions of Chapter 692A, Health and Safety Code, and Chapter 651, Occupations Code.

The proposed rule establishes registration, documentation, tracking, and disposition requirements for commercially acquired plastinated human remains and commercially acquired human skeletal material used for educational or teaching purposes within the State of Texas. Under the framework enacted by Senate Bill 2040, 88th Legislature, Regular Session (2023), the Legislature transferred to the Commission the regulation of willed body programs, non-transplant anatomical donation organizations, and anatomical facilities, and directed the Commission to adopt rules, establish procedures, and prescribe forms necessary to administer and enforce Chapter 691. Commercially acquired plastinated specimens and skeletal material enter the state through producers, distributors, and vendors and are held by educational, healthcare-training, governmental, museum, and research recipients, but no rule currently requires that such specimens be registered, tracked from acquisition through final disposition, or dispositioned in a manner consistent with the dignity accorded to other anatomical material regulated under the chapter.

The proposed rule is necessary to close that gap. It requires the direct producer or providing vendor to register each specimen with the Commission before distribution or transfer within Texas; requires that each specimen carry a unique identifier that remains associated with it through possession, transfer, and final disposition; requires recipients to maintain records and to report subsequent transfers, relocations, or changes in intended use; and requires that specimens removed from educational use be dispositioned in accordance with the disposition requirements applicable to anatomical material under the chapter, with documentation of final disposition provided to the Commission. The proposed rule provides a defined chain of custody for a category of human remains that is presently unregulated, promotes verification of lawful acquisition and donor authorization, and ensures dignified final disposition consistent with the purposes of Chapter 691.

The proposed rule was presented to and discussed by the State Anatomical Advisory Committee at its meetings on July 8 and 29, 2026. The Advisory Committee voted and recommended that the proposed rule be published in the Texas Register for public comment.

SECTION-BY-SECTION SUMMARY. The proposed rule adopts new §206.18, Registration and Disposition of Commercially Acquired Plastinated Human Remains.

Proposed subsection (a) states the purpose of the section. Proposed subsection (b) defines the terms used in the section, including "commercially acquired," "commercially acquired human skeletal material," "commercially acquired plastinated human remains," "direct producer," "distributor," "donor authorization," "educational or teaching purposes," "plastination," "recipient," "specimen," "transfer," and "unique identifier." Proposed subsection (c) states the applicability of the section to producers, distributors, vendors, and recipients that manufacture, distribute, transfer, sell, acquire, or possess the regulated material for teaching purposes in Texas. Proposed subsection (d) establishes registration requirements, requiring the direct producer or providing vendor to register each specimen with the Commission before distribution or transfer and specifying the minimum information the registration must include, including donor authorization documentation, the assigned unique identifier, and the receiving entity's information. Proposed subsection (e) establishes recipient responsibilities for recordkeeping, notice of subsequent transfer, relocation, or change in intended use within 30 days, and availability of records for inspection. Proposed subsection (f) establishes disposition requirements consistent with the disposition requirements applicable to anatomical material under the chapter, including §206.14 (Disposition of the Body and Disposition of Remains), and requires post-disposition notice to the Commission, including a Certificate of Cremation or other Commission-approved documentation and the specimen's unique identifier. Proposed subsection (g) requires producers, vendors, and recipients to retain required records for not less than seven years following final disposition. Proposed subsection (h) provides that failure to comply constitutes a violation of the chapter subject to enforcement action authorized by applicable law.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT. Ms. Maria Haynes, Texas Funeral Service Commission Executive Director, has determined that for each year of the first five years the proposed rule is in effect, there are no estimated additional costs or reductions in costs to state or local government as a result of enforcing or administering the proposed rule, other than nominal recordkeeping costs and costs absorbed within the Commission's existing appropriations for processing registrations and disposition documentation.

Ms. Haynes has determined that for each year of the first five years the proposed rule is in effect, there is no estimated increase or loss in revenue to the state or local government as a result of enforcing or administering the proposed rule.

LOCAL EMPLOYMENT IMPACT STATEMENT. Ms. Haynes has determined that the proposed rule will not affect a local economy, the agency is not required to prepare a local employment impact statement under Texas Government Code §2001.022.

PUBLIC BENEFITS. Ms. Haynes has determined that for each year of the first five-year period the proposed rule is in effect, the public benefit will be a defined chain of custody for commercially acquired plastinated human remains and human skeletal material used for teaching; improved verification of lawful acquisition and donor authorization; consistent tracking of such specimens from acquisition through final disposition; and dignified final disposition consistent with the purposes of Health and Safety Code, Chapter 691.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH THE PROPOSAL. The proposed rule imposes new registration, unique-identifier, recordkeeping, transfer-reporting, disposition-documentation, and seven-year record-retention obligations on producers, distributors, vendors, and recipients. For each year of the first five-year period the proposed rule is in effect, the probable economic costs of compliance, including any per-specimen registration burden, recordkeeping and retention costs, and disposition costs are nominal in nature.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES. Ms. Haynes has determined that the proposed rule will not have an adverse economic effect on small businesses, micro-businesses, or rural communities under Texas Government Code, Chapter 2006.

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT. Ms. Haynes has determined that the proposed rule will only have a nominal fiscal impact on regulated persons within the meaning of Texas Government Code §2001.0045. The Commission has determined that no one-for-one requirement applies since Texas Government Code §2001.0045 excepts, among other things, rules necessary to implement legislation, such as Senate Bill 2040.

GOVERNMENT GROWTH IMPACT STATEMENT. Pursuant to Texas Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rule. For each year of the first five years the proposed rule will be in effect, the agency has determined the following:

1. The proposed rule does not create or eliminate a government program. The proposed rule implements the anatomical-donation regulatory program transferred to the Commission by Senate Bill 2040.

2. Implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency.

4. The proposed rule does not require an increase or decrease in fees paid to the agency.

5. The proposed rule creates a new regulation. The proposed rule newly requires registration, tracking, and documented disposition of commercially acquired plastinated human remains and human skeletal material used for teaching.

6. The proposed rule does not expand, limit, or repeal an existing regulation.

7. The proposed rule increases the number of individuals subject to the rule's applicability, because it applies to producers, distributors, vendors, and recipients of commercially acquired plastinated human remains and human skeletal material that were not previously subject to registration and disposition requirements under the chapter.

8. The proposed rule does not adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT. The Texas Funeral Service Commission has determined that no private real property interests are affected by the proposed rule and the proposed rule does not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule does not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES. The Texas Funeral Service Commission is requesting public comments on the proposed rule and information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed rule. Please do not submit copyrighted, confidential, or proprietary information.

Comments on the proposed rule and responses to the request for information may be submitted by email to legal@tfsc.texas.gov; or by mail to Maria Haynes, Executive Director, Texas Funeral Service Commission, 1801 Congress Avenue, Suite 11.800, Austin, Texas 78701. The deadline for comments is 30 days after publication in the Texas Register .

STATUTORY AUTHORITY. The proposed rule is proposed under Texas Health and Safety Code, Chapter 691, including §691.022(c), which requires the Commission to adopt rules, establish procedures, and prescribe forms necessary to administer and enforce the chapter; §691.031, which requires the Commission to adopt rules relating to the transportation of, and records concerning, bodies and anatomical specimens; and §691.034, which requires the registration of persons and institutions using bodies and anatomical specimens and requires the Commission to adopt rules and procedures necessary to administer registration, inspection, and verification. The proposed rule is also proposed under Chapter 692A, Health and Safety Code, and under Chapter 651, Occupations Code, including §651.005, which directs the Commission to regulate willed body programs, non-transplant anatomical donation organizations, and anatomical facilities as provided by Chapter 691.

The statutory provisions affected by the proposed rule are those set forth in Texas Health and Safety Code, Chapter 691, and Chapter 692A; and Texas Occupations Code, Chapter 651.

The legislation that enacted the statutory authority under which the proposed rule is proposed to be adopted is Senate Bill 2040, 88th Legislature, Regular Session (2023).

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 August 17, 2026.

TRD-202603533

Maria Haynes

Interim Executive Director

Texas Funeral Service Commission

Earliest possible date of adoption: September 27, 2026

For further information, please call: (512) 936-2488