TITLE 16. ECONOMIC REGULATION
PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION
CHAPTER 60. PROCEDURAL RULES OF THE COMMISSION AND THE DEPARTMENT
The Texas Department of Licensing and Regulation (Department) proposes amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 60, Subchapter C, §60.32; Subchapter F, §60.82; and Subchapter I, §60.301 and §60.302, regarding the Procedural Rules of the Commission and the Department. These proposed changes are referred to as the "proposed rules."
EXPLANATION OF AND JUSTIFICATION FOR THE RULES
The rules under 16 TAC, Chapter 60 implement Texas Occupations Code, Chapter 51, the enabling statute of the Texas Commission of Licensing and Regulation (Commission) and the Department, and other laws applicable to the Commission and the Department.
The Chapter 60 rules are the procedural rules of the Commission and the Department. These rules apply to all of the agency's programs and to all license applicants and licensees, except where there is a conflict with the statutes and rules of a specific program.
The proposed rules are necessary to implement Senate Bill (SB) 2443, 89th Legislature, Regular Session (2025), which amends certain provisions under Texas Occupations Code, Chapter 51, including §51.207, Use of Technology.
Background
Prior to the passage of SB 2443, provisions of the Administrative Procedure Act (Texas Government Code, Chapter 2001) and several of the Department's program statutes required the Department to use certified mail or personal delivery to provide pleadings, notices, or orders to contested case respondents. While previous legislation and agency rules authorized the Department to require an applicant or license holder to provide an e-mail address for purposes of receiving licensing-related correspondence, the Department remained unable to use electronic means to provide documents to contested case respondents. SB 2443 addressed this conflict by specifically authorizing the Department to use electronic methods of notice for all purposes, regardless of conflicting provisions in program statutes or the Administrative Procedure Act.
The Department is currently working with a vendor to develop a modern licensing system that will allow customers to interact with the agency via an online portal similar to those provided by a bank or medical office. SB 2443 and the proposed rules will thus allow the Department to develop its system in a manner that will provide increased access and convenience to customers, as well as cost savings for the agency.
Explanation of Proposed Rules
The proposed rules will modernize the delivery of contested case pleadings, notices, and orders by allowing applicants and license holders to opt in to receiving those notices electronically, and to opt out of electronic service if desired. Pursuant to previous legislation and agency rules, the Department may send other types of correspondence (such as communications related to a license application or renewal) to applicants and license holders without their explicit consent.
Additionally, consistent with SB 2443, the proposed rules clarify that the Department's authority to require e-mail addresses extends only to applicants and license holders. The proposed rules also amend the rules concerning dishonored payment fees, notices of alleged violation and continued license restrictions, and notices of proposed denial, to allow electronic service of these notices. Lastly, the proposed rules provide that the presumption of receipt, which currently applies to certain documents sent through certified mail, also applies to electronically served documents and that it is the recipient's responsibility to view electronically served documents, including those that may have been directed to a "spam" or "junk" folder.
SECTION-BY-SECTION SUMMARY
The proposed rules amend §60.32 by changing the title from "E-mail Communications and Requirements" to "Electronic Communications and Requirements." Existing subsection (a) has been modified to clarify who may be required to provide the Department with an e-mail address for purposes of receiving general correspondence. New subsection (c) is added to provide that an applicant or license holder may consent to receive contested case pleadings, notices, and orders through electronic means including e-mail, an online portal, or another electronic method authorized by the Department. Subsection (c) also provides that a person may opt out of electronic service of these documents. New subsection (d) provides that once the applicant or license holder consents to electronic delivery, the Department may serve contested case-related documents to the person electronically.
The proposed rules amend §60.82, Dishonored Payment Fee. Existing subsection (c) has been modified to include electronic service as a way for the Department to notify an applicant, license holder, or other person if a payment has been dishonored.
The proposed rules amend §60.301, Contested Cases. Existing subsection (c) has been amended to include electronic service as an option when the Department sends notices under this rule. Existing subsection (d) has been modified by adding language to clarify proper service of notices under existing subsection (c). New subsection (e) has been added to clarify how the presumption of receipt applies to electronically served documents. The remaining subsections have been re-lettered.
The proposed rules amend §60.302, Notice of Proposed Denial. Existing subsection (b) has been modified to include electronic service as an option when the Department sends notices of proposed denials under this rule. Existing subsection (c) has been modified by adding language to clarify proper service of notices under existing subsection (b). New subsection (d) has been added to clarify how the presumption of receipt applies to electronically served documents. The remaining subsections are re-lettered.
FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT
Tony Couvillon, Senior Policy Research and Fiscal Analyst, has determined that for each year of the first five years the proposed rules are 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 rules.
Mr. Couvillon has also determined that for each year of the first five years the proposed rules are 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 rules.
LOCAL EMPLOYMENT IMPACT STATEMENT
Because Mr. Couvillon has determined that the proposed rules 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
Mr. Couvillon also has determined that for each year of the first five-year period the proposed rules are in effect, the public benefit will be reduction in postage costs by decreasing certified mail costs and thereby reducing costs for the State. Additionally, the electronic delivery of correspondence would allow the recipients of that correspondence to receive agency notices and documents in a more convenient, modern manner.
PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL
Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rules.
FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. Because the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.
ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT
The proposed rules do not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Texas Government Code §2001.0045.
GOVERNMENT GROWTH IMPACT STATEMENT
Pursuant to Texas Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the proposed rules will be in effect, the agency has determined the following:
1. The proposed rules do not create or eliminate a government program.
2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.
3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.
4. The proposed rules do not require an increase or decrease in fees paid to the agency.
5. The proposed rules do not create a new regulation.
6. The proposed rules expand, limit, or repeal an existing regulation. The proposed rules expand an existing regulation by authorizing applicants and license holders to consent to electronic delivery of contested case-related notices and notices of dishonored payment.
7. The proposed rules do not increase or decrease the number of individuals subject to the rules' applicability.
8. The proposed rules do not positively or adversely affect this state's economy.
TAKINGS IMPACT ASSESSMENT
The Department has determined that no private real property interests are affected by the proposed rules, and the proposed rules do 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 rules do 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 Department is requesting 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. 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 rules. Please do not submit copyrighted, confidential, or proprietary information.
Comments on the proposed rules and responses to the request for information may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/Ch60_Rule_Making; by facsimile to (512) 475-3032; or by mail to Monica Nuñez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.
SUBCHAPTER
C.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation (Commission), the Department's governing body, to adopt rules as necessary to implement its own procedures, Chapter 51, and any other law establishing a program regulated by the Department; and §51.207, which authorizes the Commission by rule to require an applicant or license holder to provide an e-mail address to the Department and to provide that any correspondence sent or received by the Department be delivered electronically. In addition, the proposed rules are proposed under Texas Government Code §2001.004, which requires a state agency to adopt rules of practice stating the nature and requirements of all available formal and informal procedures.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapter 51; Texas Government Code, Chapter 2001; and the program statutes for all of the Department programs: Agriculture Code, Chapter 301 (Weather Modification and Control); Education Code, Chapter 1001 (Driver and Traffic Safety Education); Government Code, Chapters 171 (Court-Ordered Programs); and 469 (Elimination of Architectural Barriers); Health and Safety Code, Chapters 401, Subchapter M (Laser Hair Removal); 466 (State Lottery); 754 (Elevators, Escalators, and Related Equipment); and 755 (Boilers); Labor Code, Chapter 91 (Professional Employer Organizations); Occupations Code, Chapters 202 (Podiatrists); 203 (Midwives); 401 (Speech-Language Pathologists and Audiologists); 402 (Hearing Instrument Fitters and Dispensers); 403 (Dyslexia Practitioners and Therapists); 451 (Athletic Trainers); 455 (Massage Therapy); 506 (Behavioral Analysts); 605 (Orthotists and Prosthetists); 701 (Dietitians); 802 (Dog or Cat Breeders); 1151 (Property Tax Professionals); 1152 (Property Tax Consultants); 1202 (Industrialized Housing and Buildings); 1302 (Air Conditioning and Refrigeration Contractors); 1304 (Service Contract Providers and Administrators); 1305 (Electricians); 1603 (Barbers and Cosmetologists); 1802 (Auctioneers); 1806 (Residential Solar Retailers); 1901 (Water Well Drillers); 1902 (Water Well Pump Installers): 1952 (Code Enforcement Officers); 1953 (Sanitarians); 1958 (Mold Assessors and Remediators); 2001 (Charitable Bingo); 2052 (Combative Sports); 2303 (Vehicle Storage Facilities); 2308 (Vehicle Towing and Booting); 2309 (Used Automotive Parts Recyclers); 2310 (Motor Fuel Metering and Quality); 2311 (Electric Vehicle Charging Stations); and 2402 (Transportation Network Companies); and Transportation Code, Chapters 551A (Off-Highway Vehicle Training and Safety); and 662 (Motorcycle Operator Training and Safety). No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 2443, 89th Legislature, Regular Session (2025).
§60.32.
E-mail] Communications and Requirements.
(a)
The department may require an applicant or license holder, [licensee, or other person who regularly receives communications from the department,] to provide an e-mail address for purposes of receiving correspondence. The department may send any correspondence to the e-mail address furnished by the person unless another form of notice is required by law.
(b) (No change.)
(c) An applicant or license holder may consent to receive service of contested case-related notices, pleadings, or orders via e-mail, an online portal maintained by the department, or other electronic means authorized by the department. Consent remains effective unless revoked in a manner prescribed by the department.
(d) Upon receiving an applicant or license holder's consent to electronic service, the department may serve documents on the person in a manner consistent with subsection (c).
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 May 18, 2026.
TRD-202602088
Deanne Rienstra
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: June 28, 2026
For further information, please call: (512) 463-3306
SUBCHAPTER
F.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation (Commission), the Department's governing body, to adopt rules as necessary to implement its own procedures, Chapter 51, and any other law establishing a program regulated by the Department; and §51.207, which authorizes the Commission by rule to require an applicant or license holder to provide an e-mail address to the Department and to provide that any correspondence sent or received by the Department be delivered electronically. In addition, the proposed rules are proposed under Texas Government Code §2001.004, which requires a state agency to adopt rules of practice stating the nature and requirements of all available formal and informal procedures.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapter 51; Texas Government Code, Chapter 2001; and the program statutes for all of the Department programs: Agriculture Code, Chapter 301 (Weather Modification and Control); Education Code, Chapter 1001 (Driver and Traffic Safety Education); Government Code, Chapters 171 (Court-Ordered Programs); and 469 (Elimination of Architectural Barriers); Health and Safety Code, Chapters 401, Subchapter M (Laser Hair Removal); 466 (State Lottery); 754 (Elevators, Escalators, and Related Equipment); and 755 (Boilers); Labor Code, Chapter 91 (Professional Employer Organizations); Occupations Code, Chapters 202 (Podiatrists); 203 (Midwives); 401 (Speech-Language Pathologists and Audiologists); 402 (Hearing Instrument Fitters and Dispensers); 403 (Dyslexia Practitioners and Therapists); 451 (Athletic Trainers); 455 (Massage Therapy); 506 (Behavioral Analysts); 605 (Orthotists and Prosthetists); 701 (Dietitians); 802 (Dog or Cat Breeders); 1151 (Property Tax Professionals); 1152 (Property Tax Consultants); 1202 (Industrialized Housing and Buildings); 1302 (Air Conditioning and Refrigeration Contractors); 1304 (Service Contract Providers and Administrators); 1305 (Electricians); 1603 (Barbers and Cosmetologists); 1802 (Auctioneers); 1806 (Residential Solar Retailers); 1901 (Water Well Drillers); 1902 (Water Well Pump Installers): 1952 (Code Enforcement Officers); 1953 (Sanitarians); 1958 (Mold Assessors and Remediators); 2001 (Charitable Bingo); 2052 (Combative Sports); 2303 (Vehicle Storage Facilities); 2308 (Vehicle Towing and Booting); 2309 (Used Automotive Parts Recyclers); 2310 (Motor Fuel Metering and Quality); 2311 (Electric Vehicle Charging Stations); and 2402 (Transportation Network Companies); and Transportation Code, Chapters 551A (Off-Highway Vehicle Training and Safety); and 662 (Motorcycle Operator Training and Safety). No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 2443, 89th Legislature, Regular Session (2025).
§60.82.
(a) - (b) (No change.)
(c) The department will notify the applicant, license holder, or other person by certified mail, or by electronic service in accordance with §60.32, that the payment has been dishonored. The applicant, license holder, or other person must pay the required processing fee and the amount of the original payment submitted to the department within 15 days after receipt of notice of the dishonored payment.
(d) (No change.)
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 May 18, 2026.
TRD-202602089
Deanne Rienstra
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: June 28, 2026
For further information, please call: (512) 463-3306
SUBCHAPTER
I.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code §51.201 and §51.203, which authorize the Texas Commission of Licensing and Regulation (Commission), the Department's governing body, to adopt rules as necessary to implement its own procedures, Chapter 51, and any other law establishing a program regulated by the Department; and §51.207, which authorizes the Commission by rule to require an applicant or license holder to provide an e-mail address to the Department and to provide that any correspondence sent or received by the Department be delivered electronically. In addition, the proposed rules are proposed under Texas Government Code §2001.004, which requires a state agency to adopt rules of practice stating the nature and requirements of all available formal and informal procedures.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapter 51; Texas Government Code, Chapter 2001; and the program statutes for all of the Department programs: Agriculture Code, Chapter 301 (Weather Modification and Control); Education Code, Chapter 1001 (Driver and Traffic Safety Education); Government Code, Chapters 171 (Court-Ordered Programs); and 469 (Elimination of Architectural Barriers); Health and Safety Code, Chapters 401, Subchapter M (Laser Hair Removal); 466 (State Lottery); 754 (Elevators, Escalators, and Related Equipment); and 755 (Boilers); Labor Code, Chapter 91 (Professional Employer Organizations); Occupations Code, Chapters 202 (Podiatrists); 203 (Midwives); 401 (Speech-Language Pathologists and Audiologists); 402 (Hearing Instrument Fitters and Dispensers); 403 (Dyslexia Practitioners and Therapists); 451 (Athletic Trainers); 455 (Massage Therapy); 506 (Behavioral Analysts); 605 (Orthotists and Prosthetists); 701 (Dietitians); 802 (Dog or Cat Breeders); 1151 (Property Tax Professionals); 1152 (Property Tax Consultants); 1202 (Industrialized Housing and Buildings); 1302 (Air Conditioning and Refrigeration Contractors); 1304 (Service Contract Providers and Administrators); 1305 (Electricians); 1603 (Barbers and Cosmetologists); 1802 (Auctioneers); 1806 (Residential Solar Retailers); 1901 (Water Well Drillers); 1902 (Water Well Pump Installers): 1952 (Code Enforcement Officers); 1953 (Sanitarians); 1958 (Mold Assessors and Remediators); 2001 (Charitable Bingo); 2052 (Combative Sports); 2303 (Vehicle Storage Facilities); 2308 (Vehicle Towing and Booting); 2309 (Used Automotive Parts Recyclers); 2310 (Motor Fuel Metering and Quality); 2311 (Electric Vehicle Charging Stations); and 2402 (Transportation Network Companies); and Transportation Code, Chapters 551A (Off-Highway Vehicle Training and Safety); and 662 (Motorcycle Operator Training and Safety). No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 2443, 89th Legislature, Regular Session (2025).
§60.301.
(a) - (b) (No change.)
(c) The department shall send the notices under subsections (a) and (b) by certified mail with electronic return receipt, or by electronic service in accordance with §60.32.
(d) A notice under subsection (c) is served properly if it is:
(1) mailed to the person's last known address as shown by the department's records; or
(2) provided to the person electronically in accordance with §60.32.
[(d) Any notice or document served upon a person is prima facie evidence of receipt if it is directed to the person's last known complete, correct address as shown by the department's records. This presumption is rebuttable. Failure to claim properly addressed certified or registered mail will not support a finding of non-delivery.]
(e) Proper service is rebuttably presumed if the notice is sent in accordance with subsection (d). A person's failure to claim properly addressed mail, or to monitor their e-mail account - including "junk" or "spam" folders - will not justify a finding of non-delivery.
(f) [(e)] Within twenty days after receiving a notice of alleged violation or notice of continued license restrictions, the person may either: accept the department's determination and recommended administrative penalty, sanction, or both; or make a written request for a hearing on the department's determination. There is a rebuttable presumption that notice is received three days after the notice was mailed.
(g) [(f)] If the person accepts the department's determination, the department and the person shall enter into an agreement as prescribed under §60.304. If a timely written request for a hearing is made, the department shall refer the department's determination to SOAH for a hearing.
(h) [(g)] If the person fails to accept the department's determination or fails to request a hearing, the department may propose entry of a default order against the person, unless otherwise provided by applicable law.
(1) - (3) (No change.)
§60.302.
(a) (No change.)
(b) The department shall send the notice of proposed denial under subsection (a) by certified mail with electronic return receipt, or by electronic service in accordance with §60.32.
(c) A notice under subsection (b) is served properly if it is:
(1) mailed to the person's last known address as shown by the department's records; or
(2) provided to the person electronically in accordance with §60.32.
[(c) Any notice or document served upon a person is prima facie evidence of receipt if it is directed to the person's last known complete, correct address as shown by the department's records. This presumption is rebuttable. Failure to claim properly addressed certified or registered mail will not support a finding of non-delivery.]
(d) Proper service is rebuttably presumed if the notice is sent in accordance with subsection (c). A person's failure to claim properly addressed mail, or to monitor their e-mail account - including "junk" or "spam" folders - will not justify a finding of non-delivery.
(e) [(d)] After receiving a notice of proposed denial, the person must request a hearing in writing within twenty days of receipt of the notice or forfeit the right to a hearing, unless otherwise provided by applicable law. There is a rebuttable presumption that notice is received three days after the notice was mailed.
(f) [(e)] If a timely written request is made, the department shall refer the proposed denial to SOAH for a hearing. If a timely written request is not made, the proposed denial is final.
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 May 18, 2026.
TRD-202602090
Deanne Rienstra
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: June 28, 2026
For further information, please call: (512) 463-3306