TITLE 16. ECONOMIC REGULATION

PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

CHAPTER 87. USED AUTOMOTIVE PARTS RECYCLERS

The Texas Commission of Licensing and Regulation (Commission) adopts amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 87, §§87.1, 87.10, 87.71, 87.72, and 87.78, and a new rule at §87.81 regarding the Used Automotive Parts Recyclers program, without changes to the proposed text as published in the December 20, 2024, issue of the Texas Register (49 TexReg 10173). These rules will not be republished.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 87, implement Texas Occupations Code, Chapter 2309, Used Automotive Parts Recyclers.

The adopted rules implement Senate Bill (SB) 224, 88th Legislature, Regular Session (2023), the Deputy Darren Almendarez Act, which addresses the issue of catalytic converter theft. Section 5.01 of the Act provides for the coordination of efforts between the Department and other state agencies, including the Motor Vehicle Crime Prevention Authority, the Department of Motor Vehicles, and the Department of Public Safety, in order for the respective agencies to effectively review records involving the purchase, acquisition, sale, or transfer of catalytic converters removed from motor vehicles and to respond to suspicious activities that may be detected through the analysis of these records.

Section 3.12 of the Act amends Occupations Code, Chapter 2305, Records of Certain Vehicle Repairs, Sales, and Purchases, by enacting new subchapter D, pertaining to records of sales or transfers of catalytic converters removed from vehicles. Occupations Code §2305.152 clarifies that the subchapter is applicable to used automotive parts recyclers (UAPRs). Section 2305.153 requires UAPRs to maintain accurate transaction records of the transaction for a period of two years. Under §2305.153(b), the record must contain a description made in accordance with the custom of the trade for the volume of catalytic converters sold or transferred, the name of the person to whom the catalytic converters were sold or transferred, and the date of the transaction. Section 2305.155 grants the Department authority to enter a licensee's premises for purpose of examining the records. The adopted rules implement these provisions by requiring UAPRs to maintain these records and furnish them to the Department for inspection upon request. The adopted rules additionally incorporate by reference the two-year records retention period required by SB 224.

The adopted rules additionally make changes in response to concerns raised during the Department's four-year rule review process under Government Code §2001.039. These changes include insertion of a reference to a newly adopted statute, Transportation Code §551A.001, which pertains to definitions related to off-highway vehicles, and the removal of an obsolete reference to §502.001. These changes also include additional amendments to clarify the duty to produce records for inspection, the record retention requirements for different types of records, and that both license plates and registration insignia must be removed. Lastly, the adopted rules make other clarifying changes, including the addition of language concerning the applicability of the rules and the statutes implemented by the rules.

SECTION-BY-SECTION SUMMARY

The adopted rules amend §87.1, Authority. The adopted rules modify the rule heading to "Authority and Applicability." The rule is divided into two subsections, with the current substantive text stated in subsection (a) and new language inserted in the last sentence of subsection (a) and in subsection (b). The language inserted in subsection (a) clarifies that specific rule provisions implement Occupations Code, Chapter 2305, Transportation Code, Chapter 501, and other applicable statutes. The language consisting of subsection (b) clarifies that rules under 16 TAC Chapter 60, Procedural Rules of the Commission and the Department, are also applicable to the UAPR program.

The adopted rules amend §87.10, Definitions. References to Transportation Code §551A.001 are added to the introductory paragraph and to paragraph (9)(D), and an obsolete reference to Transportation Code §502.001 is deleted from paragraph (9)(D).

The adopted rules amend §87.71, Responsibilities of the Licensee--Record Retention. The heading is modified by adding the phrase "and Production" to reflect the expanded scope of the rule. The language of subsection (b) is modified to reflect that licensees generally must maintain records for three years unless a shorter period is specified elsewhere in the rules chapter. New subsection (c) is inserted with language reflecting a general one-year retention period for records of purchase or receipt of component parts, and a sentence clarifying that this provision does not apply to the receipt of catalytic converters. New subsection (d) is inserted, with language stating that the records retention requirements for catalytic converter transactions are as specified in new rule §87.81. New subsection (e) is inserted, with language setting forth a licensee's duty to produce records to a Department representative on request.

The adopted rules amend §87.72. The heading is modified by adding the phrase "Contact Information and" to reflect the expanded scope of the rule. New subsection (a) is inserted, with language requiring a licensee to notify the department within 30 days following any change in contact information. Existing subsections (a) and (b) are re-lettered as (b) and (c), respectively.

The adopted rules amend §87.78. The heading is modified by the insertion and removal of language to reflect the new scope of the rule. New subsection (a) is inserted, with language reflecting that licensees must remove both the license plates and registration insignia from the vehicles and must securely store the license plates until the plates are destroyed. Existing subsections (a) and (b) are re-lettered as (b) and (c), respectively.

The adopted rules add new §87.81, Responsibilities of the Licensee--Catalytic Converter Theft Prevention. The rule contains three subsections, (a) through (c). Subsection (a) sets forth the requirement to create and maintain accurate records of catalytic converter sales and transfers. Subsection (b) provides that the records must include the name of the purchaser or transferee, a description of the quantity of catalytic converters, and the date of the transaction. Subsection (c) sets forth a two-year retention period for these records and a requirement to produce the records, and any removed catalytic converters, for inspection when directed to do so.

PUBLIC COMMENTS

The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the December 20, 2024, issue of the Texas Register (49 TexReg 10173). The public comment period closed on January 21, 2025. The Department received a comment from one interested party on the proposed rules. The public comment is summarized below.

Comment: The commenter provided a copy of a catalytic converter sales receipt without additional information and did not express an opinion for or against adoption of the proposed rules.

Department Response: Because the commenter did not express an opinion concerning the proposed rules, the Department does not recommend any changes to the proposed rules and will direct the correspondence to the appropriate division for further action.

ADVISORY BOARD RECOMMENDATIONS AND COMMISSION ACTION

The Used Automotive Parts Recycling Advisory Board met on March 6, 2025, to discuss the proposed rules and the public comments received. The Advisory Board recommended that the Commission adopt the proposed rules as published in the Texas Register . At its meeting on April, 9, 2025, the Commission adopted the proposed rules as recommended by the Advisory Board.

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 2309, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51, 2305, and 2309. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is Senate Bill 224, 88 ^th Legislature, Regular Session (2023).

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

Filed with the Office of the Secretary of State on April 25, 2025.

TRD-202501355

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Effective date: May 15, 2025

Proposal publication date: December 20, 2024

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

CHAPTER 112. HEARING INSTRUMENT FITTERS AND DISPENSERS

The Texas Commission of Licensing and Regulation (Commission) adopts amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 112, Subchapter A, §112.2; Subchapter E, §112.44; and Subchapter L, §112.110; the repeal of existing rules at Subchapter H, §112.70 and §112.72; and the addition of new rules at Subchapter H, §112.70 and §§112.73 - 112.76, regarding the Hearing Instrument Fitters and Dispensers program, without changes to the proposed text as published in the November 29, 2024, issue of the Texas Register (49 TexReg 9688). These rules will not be republished.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 112, implement Texas Occupations Code, Chapter 402, Hearing Instrument Fitters and Dispensers; and Chapter 51, the enabling statute of the Texas Commission of Licensing and Regulation (Commission) and the Department.

The adopted rules are necessary to update the current administrative rules and the continuing education (CE) requirements for hearing instrument fitter and dispenser apprentices, license holders, and CE providers. The adopted rules are a result of changes suggested during the required four-year rule review related to CE; changes recommended by the Education and Examination Workgroup of the Hearing Instrument Fitters and Dispensers Advisory Board; and other suggested changes made possible, in part, by House Bill (HB) 1560, 87 ^th Legislature, Regular Session (2021), the Department's Sunset legislation.

The adopted rules also change the CE provider registration term from one year to two years and increase the registration application fees from $200 annually to $400 every two years. Beginning May 1, 2025, the provider registrations will change from one-year to two-year terms, and the application and renewal fees will reflect this change. Existing provider registrations will be valid for one year if renewed before May 1, 2025, or for two years if renewed on or after May 1, 2025.

Four-Year Rule Review Changes

The adopted rules include changes as a result of the required four-year rule review conducted under Texas Government Code §2001.039. The Department conducted the required four-year rule review of the rules under 16 TAC Chapter 112, and the Commission readopted the rule chapter in its entirety and in its current form. (Proposed Rule Review, 45 TexReg 7281, October 9, 2020. Adopted Rule Review, 46 TexReg 2050, March 26, 2021).

In response to the Notice of Intent to Review that was published, the Department received comments from two interested parties regarding 16 TAC Chapter 112, one of which is applicable to this rules package and will be addressed as part of this rules package. The comment suggested changes to the continuing education provider registration fee under §112.110. The comment suggested having a separate CE provider registration fee of $25 paid bi-annually for out-of-state CE providers, which may encourage more out-of-state providers to become registered CE providers for the Hearing Instrument Fitters and Dispensers program. The Department disagrees with the suggestion to treat out-of-state providers differently, and this suggested change is not included in the adopted rules.

The adopted rules include changes based on the Department's review of the rules during the rule review process related to continuing education and changes recommended by the Education and Examination Workgroup.

Other Changes Made Possible by HB 1560

HB 1560, Sections 1.15 and 1.25, amended Texas Occupations Code §402.207(c) and repealed §402.303, to remove detailed requirements regarding the number of CE hours, the methods of CE delivery, the types of CE providers, and the approval of CE providers and courses. HB 1560, Section 1.12, also added broad rulemaking authority under Texas Occupations Code §51.405 regarding CE requirements and CE providers. The adopted rules revise and/or eliminate some of the CE provisions that were previously required by statute. The adopted rules allow more flexibility on the methods of CE delivery and the types of CE hours that may be obtained, and they eliminate the need for individual CE courses to be approved by the Department.

The adopted rules prescribe and expand the CE hours, courses, and methods of delivery. The adopted rules decrease the number of CE hours an apprentice permit holder must complete during the apprentice year, specify the type of proof necessary to claim CE credit during the apprentice permit year, and limit how and when an apprentice can claim CE credit. The adopted rules expand the methods of CE course delivery a hearing instrument fitter and dispenser license holder can use to earn CE hours; limit how and when a license holder can claim CE credit; and provide details on alternative methods for a license holder to obtain CE hours.

The adopted rules also modify provisions for CE providers relating to registration and application requirements; registration issuance, term, and renewal requirements; and the responsibilities imposed on CE providers. The adopted rules also extend the CE provider registration term from one year to two years and restructure the registration fees from $200 annually to $400 every two years. In addition, the adopted rules eliminate the current requirement that each CE course offered or provided by a registered CE provider must be approved by the Department.

Finally, the adopted rules include changes recommended by Department staff to correct and update citations and cross-references to improve accuracy, readability, and consistency in the rule text.

SECTION-BY-SECTION SUMMARY

Subchapter A. General Provisions.

The adopted rules amend §112.2, Definitions. The adopted rules add definitions for the following new terms: "continuing education methods of delivery," "in-person continuing education course," "online continuing education course," and "virtual (or virtually) continuing education course." The adopted rules also amend the existing definition of "continuing education hour"; reorganize in alphabetical order the existing terms "continuing education hour" and "contract"; and renumber the terms in this section.

Subchapter E. Apprentice Permit.

The adopted rules amend §112.44, Apprentice Permit--Continuing Education. The adopted rules under subsection (a) reduce the required number of CE hours from 20 hours to 10 hours during the apprentice year; eliminate the requirement that all CE hours must be completed in the classroom; allow five CE hours to be completed online; and clarify that virtual courses are not considered online courses. The adopted rules amend subsection (b) to clarify that all CE courses completed during an apprentice year must be provided by a Department-registered continuing education provider. The adopted rules amend subsection (c) by requiring the permit holder to provide proof of attendance in a form and manner prescribed by the Department. The adopted rules add new subsections (d) and (e) to clarify that the apprentice permit holder will not receive credit for completing the same CE course more than once during the permit term, will not receive credit without attending the full CE course, and will not receive partial credit for attending less than the full course.

Subchapter H. Continuing Education Requirements.

The adopted rules repeal §112.70, Continuing Education--Hours and Courses. The requirements in this section are being repealed and replaced with the updated requirements in new §112.70.

The adopted rules add new §112.70, Continuing Education--Hours, Courses, and Methods of Delivery. This new section replaces existing §112.70, with the following adopted changes. The adopted rules change the title of this section from "Continuing Education--Hours and Courses" to "Continuing Education--Hours, Courses, and Methods of Delivery." The adopted rules reorganize this section to group the requirements for each CE method or activity into separate subsections. The adopted rules clarify in subsection (b) that a license holder may complete the 20 CE hours that are required each license term through the continuing education methods prescribed under subsections (c) - (g).

The adopted rules under subsection (c) allow hearing instrument fitter and dispenser license holders to earn the required CE hours by completing CE courses offered in-person, online, or virtually and prescribe the conditions under which the hours can be completed. The adopted rules increased the current limit on the number of CE hours received from a manufacturer CE provider from no more than five hours to no more than 10 hours per license term. The adopted rules continue the current limit on the number of online CE hours received to no more than 10 hours per license term, but the adopted rules clarify that virtual courses are not considered to be online course.

The adopted rules under subsection (d) clarify that a license holder may not receive more than five hours of CE credit per license term for preparation of a published book or article. The adopted rules under subsection (e) address earning CE credit for completion of academic courses related to the fitting and dispensing of hearing instruments. The adopted rules under subsection (f) address earning CE credit for participating in or teaching programs directly related to the fitting and dispensing of hearing instruments and limit the number of CE hours that may be received per license term to five CE hours. The adopted rules under subsection (g) authorize license holders to earn continuing education hours by serving as proctors for practical tests, with a maximum of one in-person CE hour per test date and four in-person CE hours per license term. The adopted rules under subsection (h) address activities that will not receive CE credit, and the adopted rules under subsection (i) addresses statutory CE exemptions.

The adopted rules repeal §112.72, Continuing Education--Providers. The requirements in this section are being repealed and replaced with the updated requirements in new §§112.73 - 112.76.

The adopted rules add new §112.73, Continuing Education Provider--Registration Requirement and Application. The adopted rules require CE providers to register with the Department in order to offer or provide CE courses for the Hearing Instrument Fitters and Dispensers program. The adopted rules prescribe the application requirements for a CE provider registration. The adopted rules require the courses provided by a CE provider meet certain specified requirements, but the individual CE courses no longer must be approved by the Department.

The adopted rules add new §112.74, Continuing Education Provider--Issuance of Registration. The adopted rules provide details on CE provider registrations issued by the Department after a CE provider registration application has been approved.

The adopted rules add new §112.75, Continuing Education Provider--Registration Term; Renewal. The adopted rules extend the current CE provider registration term from one year to two years and specify the requirements for renewal and the consequences of non-renewal. The adopted rules include transition provisions. A registration is valid for one year if the registration was issued before May 1, 2025, or two years if the registration was issued on or after May 1, 2025. Similarly, the adopted rules establish that a registration renewed by the Department is valid for one year if the renewal was issued before May 1, 2025, and must be renewed annually, or two years if the renewal was issued on or after May 1, 2025, and must be renewed every two years. The adopted rules also provide that a list of registered CE providers will be available through a search function on the Department's website.

The adopted rules add new §112.76, Continuing Education Provider--Provider Responsibilities. The adopted rules establish the responsibilities of CE providers registered with the Department and include provisions addressing advertisements, credit hours, delivery and administration of the courses, validation for online and virtual courses, certificates of completion, recordkeeping, and audits. The adopted rules also specify actions by a CE provider that constitute violations of the rules.

Subchapter L. Fees.

The adopted rules amend §112.110, Fees. The adopted rules under subsection (f) restructure registration and renewal fees for continuing education providers to align with the CE provider registration term that is being extended from one year to two years. The continuing education provider registration fee is increased from a $200 fee paid upon application and then a $200 fee paid annually upon renewal, to a $400 fee paid upon application and a $400 fee paid every two years upon renewal.

PUBLIC COMMENTS

The Department drafted and distributed the adopted rules to persons internal and external to the agency. The adopted rules were published in the November 29, 2024, issue of the Texas Register (49 TexReg 9688). The public comment period closed on December 30, 2024. The Department received comments from one interested party on the proposed rules. The public comment is summarized below.

Comment: The comment was submitted by the Texas Hearing Aid Association (THAA). THAA's comment was, in effect, a proposal by THAA to assist TDLR with CE Course provider approval. Specifically, THAA offered to serve as the approved CE provider and oversight body for hearing instrument fitters and dispensers in the state of Texas. As the comment did not suggest any changes to the proposed rules, the Department interprets this comment in support of the proposed amendments.

Department Response: THAA's comment did not directly address the content of the proposed rules. Instead, the comment was a proposal by THAA to assist TDLR with CE Course provider approval. The comment did not propose any changes or raise any concerns or issues with the proposed rules package, so the Department cannot agree or disagree with the substance of THAA's comment. Thus, the Department has made no changes to the proposed rules as a result of the comment.

ADVISORY BOARD RECOMMENDATIONS AND COMMISSION ACTION

The Hearing Instrument Fitters and Dispensers Advisory Board met on March 4, 2025, to discuss the proposed rules and the public comments received. The Advisory Board recommended that the Commission adopt the proposed rules as published in the Texas Register. At its meeting on April 9, 2025, the Commission adopted the proposed rules as recommended by the Advisory Board.

SUBCHAPTER A. GENERAL PROVISIONS

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 402, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 402. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is House Bill 1560, 87 ^th Legislature, Regular Session (2021).

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

Filed with the Office of the Secretary of State on April 25, 2025.

TRD-202501341

Doug Jennings

Texas Department of Licensing and Regulation

General Counsel

Effective date: May 15, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 475-4879

SUBCHAPTER E. APPRENTICE PERMIT

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 402, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 402. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is House Bill 1560, 87 ^th Legislature, Regular Session (2021).

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

Filed with the Office of the Secretary of State on April 25, 2025.

TRD-202501342

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Effective date: May 15, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 475-4879

SUBCHAPTER H. CONTINUING EDUCATION REQUIREMENTS

STATUTORY AUTHORITY

The adopted repeals are repealed under Texas Occupations Code, Chapters 51 and 402, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adopted repeals are those set forth in Texas Occupations Code, Chapters 51 and 402. No other statutes, articles, or codes are affected by the adopted repeals.

The legislation that enacted the statutory authority under which the adopted repeals are proposed to be adopted is House Bill 1560, 87 ^th Legislature, Regular Session (2021).

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

Filed with the Office of the Secretary of State on April 25, 2025.

TRD-202501343

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Effective date: May 15, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 475-4879

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 402, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 402. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is House Bill 1560, 87 ^th Legislature, Regular Session (2021).

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

Filed with the Office of the Secretary of State on April 25, 2025.

TRD-202501344

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Effective date: May 15, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 475-4879

SUBCHAPTER L. FEES

STATUTORY AUTHORITY

The adopted rules are adopted under Texas Occupations Code, Chapters 51 and 402, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and 402. No other statutes, articles, or codes are affected by the adopted rules.

The legislation that enacted the statutory authority under which the adopted rules are proposed to be adopted is House Bill 1560, 87 ^th Legislature, Regular Session (2021).

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

Filed with the Office of the Secretary of State on April 25, 2025.

TRD-202501345

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Effective date: May 15, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 475-4879