TITLE 40. SOCIAL SERVICES AND ASSISTANCE

PART 15. TEXAS VETERANS COMMISSION

CHAPTER 459. NEW VETERAN-OWNED BUSINESS VERIFICATION LETTERS

40 TAC §459.1

The Texas Veterans Commission (Commission) proposes the adoption of new rules for 40 Texas Administrative Code (TAC) Chapter 459 New Veteran-Owned Business Verification Letters, in order to comply with Texas Government Code §434.022.

The Commission has analyzed this proposed rulemaking, and the analysis is described below for each category of analysis performed.

PART I. PURPOSE AND BACKGROUND

The Commission proposes new rules for Chapter 459 (§459.1), to outline the process necessary to request a Veteran Verification Letter.

PART II. EXPLANATION OF SECTIONS

§459.1 - Documents Needed to Request a Veteran Verification Letter for a New Veteran-Owned Business: Outlines the acceptable documentation needed when requesting a Veteran Verification Letter. Establishes that TVC may not accept any documentation submitted for a VVL if the document is redacted or altered, or if the character of military service is not present.

PART III. IMPACT STATEMENTS

FISCAL NOTE

Michelle Nall, Chief Financial Officer of the Commission, has determined for each year of the first five years the proposed new rule is in effect, there will not be an increase in expenditures or revenue for state and local government due to administering the new proposed rule.

COSTS TO REGULATED PERSONS

Michelle Nall, Chief Financial Officer of the Commission, has determined that there will not be anticipated economic costs for people required to comply with the new proposed rule.

LOCAL EMPLOYMENT IMPACT

Charlie C. Osborne, Jr., Director of Veteran Services of the Commission, has determined that the proposed new rule will not significantly impact employment conditions in the state.

SMALL BUSINESS, MICRO BUSINESS AND RURAL COMMUNITIES IMPACT

Megan Tamez, Director of the Veterans Entrepreneur Program at the Commission, has determined that the proposed new rule will not adversely affect small businesses, micro-businesses, or rural communities as defined in Texas Government Code §2006.001. As a result, an Economic Impact Statement and Regulatory Flexibility Analysis are not required.

PUBLIC BENEFIT

Shawn Deabay, Deputy Executive Director of the Commission, has determined that for each of the first five years the proposed new rule is in effect, the public benefit anticipated due to administering the new rule will more closely align with the Commission's operations.

GOVERNMENT GROWTH IMPACT STATEMENT

Shawn Deabay, Deputy Executive Director of the Commission, has also determined that for each year of the first five years that the proposed new rule is in effect, the following statements will apply:

(1) The proposed new rule will not create or eliminate a government program.

(2) Implementation of the proposed new rule will not require creation of new employee positions, or elimination of existing employee positions.

(3) Implementation of the proposed new rule will not require an increase or decrease in future legislative appropriations to the agency.

(4) No fees will be created by the proposed new rule.

(5) The proposed new rule will not require new regulations.

(6) The proposed new rule has no effect on existing regulations.

(7) The proposed new rule does not increase the number of individuals subject to the rule's applicability.

(8) The proposed new rule has no effect on this state's economy.

TAKINGS IMPACT ASSESSMENT REQUIRED BY TEXAS GOVERNMENT CODE §2007.043.

The Proposed new rule does not contemplate or authorize a taking by the Commission; therefore, no Takings Impact Assessment is required.

PART IV. COMMENTS

Comments on the proposed new rule may be submitted to Texas Veterans Commission, Attention: General Counsel, P.O. Box 12277, Austin, Texas 78711; faxed to (512) 475-2395; or emailed to rulemaking@tvc.texas.gov. Please include "VVL Rule" in the subject line for comments submitted electronically. The Commission must receive comments postmarked no later than 30 days from the date this proposal is published in the Texas Register.

PART V. STATUTORY AUTHORITY

The new rule is proposed under Texas Government Code §434.010, which authorizes the Commission to adopt rules it considers necessary for its administration.

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

§459.1. Documents Needed to Request a Veteran Verification Letter for a New Veteran-Owned Business.

(a) To request a new Veteran Verification Letter (VVL) for a New Veteran-Owned Business from the Texas Veterans Commission (TVC) under Tax Code §171.0005 (Definition of New Veteran-Owned Business) to verify the individual served in and was honorably discharged from a branch of the United States armed forces, an individual shall submit to TVC a copy of the individual's:

(1) DD-214;

(2) NGB-22; or

(3) NA Form 13038.

(b) TVC may not accept a document submitted by an individual under subsection (a) of this section if:

(1) the document has any information redacted; or

(2) the individual's character of military service is not present.

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 February 11, 2026.

TRD-202600593

Thomas Palladino

Executive Director

Texas Veterans Commission

Earliest possible date of adoption: March 29, 2026

For further information, please call: (737) 320-4167