PART 4. OFFICE OF THE SECRETARY OF STATE
CHAPTER 106. REGISTRATION OF DATA BROKERS
The Office of the Secretary of State (Office) proposes new Chapter 106, §§106.1 - 106.5, concerning registration of data brokers. The Office proposes these rules to implement the new registration requirements for data brokers in Senate Bill 2105, enacted by the 88th Legislature, Regular Session, codified at Chapter 509 of the Texas Business and Commerce Code (SB 2105).
BACKGROUND INFORMATION AND JUSTIFICATION
SB 2105, adopted by the 88th Legislature, Regular Session, creates a comprehensive framework in Chapter 509 of the Texas Business and Commerce Code to regulate data brokers. The bill took effect on September 1, 2023.
As enacted by SB 2105, Chapter 509 of the Texas Business and Commerce Code requires a data broker (as defined in Texas Business and Commerce Code §509.001(4)) to register annually with the Office. Texas Business and Commerce Code §509.005 specifies the amount of the registration or renewal fee and identifies the information that must be included in a data broker's registration statement filed with the Office. Texas Business and Commerce Code §509.006 directs the Secretary of State to establish and maintain, on its Internet website, a searchable, central registry of data brokers registered under §509.005. Texas Business and Commerce Code §509.004 requires a data broker that maintains an Internet website or mobile application to post a conspicuous notice on the website or application that, in part, contains the language provided by rule of the Office for inclusion in the notice.
Section 2 of SB 2105 requires the Office, not later than December 1, 2023, to adopt rules necessary to facilitate registration by a data broker under Texas Business and Commerce Code §509.005. Section 2 also directs the Office to incorporate into the rules adequate time for a data broker to comply with Chapter 509 of the Texas Business and Commerce Code following the adoption of the rules.
The purpose of these new rules under Chapter 106 (Registration of Data Brokers) is to provide information regarding the procedures for data broker registration with the Office and the posting of a notice on the data broker's Internet website or mobile application, in accordance with SB 2105.
SECTION-BY-SECTION SUMMARY
Proposed §106.1 defines terms used within Chapter 106.
Proposed §106.2 specifies the procedures for a data broker to register with the Office, or to renew an existing registration certificate, as required by Texas Business and Commerce Code §509.005.
Proposed §106.3 provides that a registration of a data broker is valid for one year from the date of issuance and must be renewed annually. The section also designates the time period for a data broker to submit a renewal application. Consistent with Section 2 of Senate Bill 2105, this section requires a data broker subject to Chapter 509 of the Texas Business and Commerce Code to file an initial registration with the Office on or before March 1, 2024.
Proposed §106.4 establishes the procedures for a data broker to submit a statement of correction.
Proposed §106.5 sets forth the required notice language for posting by a data broker on its Internet website or mobile application pursuant to Texas Business and Commerce Code §509.004.
FISCAL NOTE
SB 2105 requires a data broker subject to Chapter 509 of the Texas Business and Commerce Code to register with the Office by filing a registration statement and paying a registration fee or renewal fee of $300. The proposed new rules do not impose any additional costs on a data broker seeking to register with the Office.
Accordingly, Traci Cotton, Director of the Office's Business & Public Filings Division, has determined that for each year of the first five years that the proposed new sections will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the proposed rules. In addition, the Office does not anticipate that enforcing or administering the proposed rules will result in any reductions in costs or in any additional costs to the Office, the state, or local governments. The Office also does not anticipate that there will be any loss or increase in revenue to the Office, the state, or local governments as a result of enforcing or administering the proposed rules.
PUBLIC BENEFIT
Ms. Cotton has determined that for each year of the first five years that the proposed new sections will be in effect, the public benefit expected as a result of adopting the proposed new rules will be clarity with respect to the Office's application of Texas Business and Commerce Code §509.005. The proposed new rules will benefit the public by providing information regarding the registration of data brokers with the Office in accordance with Chapter 509 of the Texas Business and Commerce Code. The rules also will provide guidance to data brokers regarding the required notice language under Texas Business and Commerce Code §509.004.
ECONOMIC COSTS TO PERSONS AND IMPACT ON LOCAL EMPLOYMENT
There are no anticipated economic costs to persons required to comply with the proposed new rules. There is a cost imposed on a data broker seeking to register with the Office, or submitting a renewal application related to an existing registration certificate, pursuant to Texas Business and Commerce Code §509.005. However, the Office's proposed new rules do not impose any additional costs on such entities. There is no effect on local economy for the first five years that the proposed new rules will be in effect; therefore, no local employment impact statement is required under Texas Government Code §§2001.022 and 2001.024(a)(6).
FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES
The proposed new rules will have no direct adverse economic impact on small businesses, micro-businesses, or rural communities. Accordingly, the preparation of an economic impact statement and a regulatory flexibility analysis, as specified in Texas Government Code §2006.002, is not required.
GOVERNMENT GROWTH IMPACT STATEMENT
Pursuant to Texas Government Code §2001.0221, the Office provides the following government growth impact statement for the proposed rules. For each year of the first five years that the proposed new rules will be in effect, the Office has determined the following:
(1) the proposed rules will not create or eliminate a government program;
(2) implementation of the proposed rules will not require the creation of new employee positions or the elimination of existing employee positions;
(3) implementation of the proposed rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the proposed rules will not require an increase or decrease in fees paid to the agency;
(5) the proposed rules are new rules and therefore create new regulations;
(6) the proposed rules will not expand, limit, or repeal an existing regulation;
(7) the proposed rules will not increase or decrease the number of individuals subject to the rules' applicability; and
(8) the proposed rules will not positively or adversely affect the state's economy.
REQUEST FOR PUBLIC COMMENTS
Comments or questions on the proposed new rules may be submitted in writing and directed to Adam Bitter, General Counsel, Office of the Secretary of State, P.O. Box 12887, Austin, Texas 78711-2887, or by e-mail to generalcounsel@sos.texas.gov. Comments will be accepted for thirty (30) days from the date of publication of the proposed rules in the Texas Register. Comments should be organized in a manner consistent with the organization of the proposed new rules.
SUBCHAPTER A. DEFINITIONS
STATUTORY AUTHORITY
The proposed new rule is authorized by Texas Business and Commerce Code §509.010 and Texas Government Code §2001.004(1). Texas Business and Commerce Code §509.010 authorizes the Office to adopt rules as necessary to implement Chapter 509 of the Texas Business and Commerce Code. Texas Government Code §2001.004 requires a state agency to adopt rules of practice stating the nature and requirements of formal and informal procedures.
CROSS REFERENCE TO STATUTE
The proposed new rules implement Chapter 509 of the Texas Business and Commerce Code. No other statute, code, or article is affected by the proposed rules.
§106.1.Definitions.
Words and terms defined in Chapter 509 of the Business and Commerce Code shall have the same meaning in this chapter. In addition, the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Primary physical address--The physical address at which the relevant individual or entity is available for contact.
(2) Registrant--A data broker who has registered with the secretary and has been issued a registration certificate.
(3) Secretary--The Texas Secretary of State.
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 September 18, 2023.
TRD-202303478
Adam Bitter
General Counsel
Office of the Secretary of State
Earliest possible date of adoption: October 29, 2023
For further information, please call: (512) 463-5770
STATUTORY AUTHORITY
The proposed new rules are authorized by Texas Business and Commerce Code §509.010 and Texas Government Code §2001.004(1). Texas Business and Commerce Code §509.010 authorizes the Office to adopt rules as necessary to implement Chapter 509 of the Texas Business and Commerce Code. Texas Government Code §2001.004 requires a state agency to adopt rules of practice stating the nature and requirements of formal and informal procedures.
CROSS REFERENCE TO STATUTE
The proposed new rules implement Chapter 509 of the Texas Business and Commerce Code. No other statute, code, or article is affected by the proposed rules.
§106.2.Registration and Renewal of Data Brokers.
(a) A complete registration statement or renewal application is comprised of:
(1) A completed registration statement or renewal application, signed and sworn to by or on behalf of the data broker, in the form promulgated by the secretary; and
(2) Payment of the registration fee or renewal fee stated in Business and Commerce Code §509.005(a) or §509.005(d), as applicable.
(b) A registration statement or renewal application must comply with Business and Commerce Code §509.005, and also provide:
(1) For the individual submitting the registration statement or renewal application:
(A) The individual's legal name;
(B) The individual's telephone number;
(C) The individual's primary physical address;
(D) The individual's mailing address; and
(E) The individual's e-mail address.
(2) For all renewals, the renewal application must also:
(A) Specify that the submission is a renewal application related to an existing registration certificate; and
(B) Provide the registration number assigned to the data broker by the secretary.
§106.3.Timing of Registration.
(a) A registration certificate expires on the first anniversary of its date of issuance by the Office.
(b) A data broker seeking to renew an existing registration certificate shall file a renewal application within ninety (90) days before the expiration of the registration certificate.
(c) The initial registration of a data broker to which Chapter 509 of the Business and Commerce Code applies must be filed on or before March 1, 2024.
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 September 18, 2023.
TRD-202303479
Adam Bitter
General Counsel
Office of the Secretary of State
Earliest possible date of adoption: October 29, 2023
For further information, please call: (512) 463-5770
STATUTORY AUTHORITY
The proposed new rule is authorized by Texas Business and Commerce Code §509.010 and Texas Government Code §2001.004(1). Texas Business and Commerce Code §509.010 authorizes the Office to adopt rules as necessary to implement Chapter 509 of the Texas Business and Commerce Code. Texas Government Code §2001.004 requires a state agency to adopt rules of practice stating the nature and requirements of formal and informal procedures.
CROSS REFERENCE TO STATUTE
The proposed new rules implement Chapter 509 of the Texas Business and Commerce Code. No other statute, code, or article is affected by the proposed rules.
§106.4.Corrections.
(a) A data broker must submit a statement of correction if, during the year, it becomes known to the registrant that any information given at the time of registration or renewal, as applicable, was inaccurate.
(b) A statement of correction must include the following information:
(1) The legal name of the data broker;
(2) The date of the last filed registration statement or renewal application;
(3) The registration number assigned to the data broker by the secretary; and
(4) A statement that identifies the inaccuracy and provides the corrected information.
(c) The statement of correction must be signed and sworn to by or on behalf of the data broker in the same manner as a registration statement or renewal application.
(d) There is no filing fee for a correction.
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 September 18, 2023.
TRD-202303481
Adam Bitter
General Counsel
Office of the Secretary of State
Earliest possible date of adoption: October 29, 2023
For further information, please call: (512) 463-5770
STATUTORY AUTHORITY
The proposed new rule is authorized by Texas Business and Commerce Code §509.010 and Texas Government Code §2001.004(1). Texas Business and Commerce Code §509.010 authorizes the Office to adopt rules as necessary to implement Chapter 509 of the Texas Business and Commerce Code. Texas Government Code §2001.004 requires a state agency to adopt rules of practice stating the nature and requirements of formal and informal procedures.
CROSS REFERENCE TO STATUTE
The proposed new rules implement Chapter 509 of the Texas Business and Commerce Code. No other statute, code, or article is affected by the proposed rules.
§106.5.Notice Requirements.
A data broker that maintains an Internet website or mobile application shall post a conspicuous notice on the website or mobile application that states:
(1) For websites:
Figure: 1 TAC §106.5(1) (.pdf)
(2) For mobile applications:
Figure: 1 TAC §106.5(2) (.pdf)
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 September 18, 2023.
TRD-202303482
Adam Bitter
General Counsel
Office of the Secretary of State
Earliest possible date of adoption: October 29, 2023
For further information, please call: (512) 463-5770
CHAPTER 351. COORDINATED PLANNING AND DELIVERY OF HEALTH AND HUMAN SERVICES
SUBCHAPTER A. GENERAL PROVISIONS
The Executive Commissioner of the Texas Health and Human Services Commission (HHSC) proposes an amendment to §351.3, concerning Recognition of Out-of-State License of Military Spouse; and new §351.6, concerning Alternative Licensing for Military Service Members, Military Spouses, and Military Veterans.
BACKGROUND AND PURPOSE
The purpose of the proposal is to implement Senate Bill (S.B.) 422, 88th Legislature, Regular Session, 2023, which amended Texas Occupations Code Chapter 55, Licensing of Military Service Members, Military Veterans, and Military Spouses. The proposed amendment to §351.3 would allow military service members who are currently licensed in good standing with another jurisdiction to engage in a business or occupation in Texas if the other jurisdiction has licensing requirements substantially equivalent to the requirements for the license in Texas. Proposed new §351.6 would create an alternative licensing process for military service members, military spouses, and military veterans. This amendment establishes requirements and procedures authorized or required by Texas Occupations Code, Chapter 55, and does not modify or alter rights that may be provided under federal law.
SECTION-BY-SECTION SUMMARY
The proposed amendment to §351.3 replaces "military spouse" in the title with "military service members and military spouses" and otherwise makes the rule applicable to military service members in addition to military spouses. The proposed amendment also adds a requirement that HHSC verify the licensure and issue a verification letter recognizing the licensure within 30 days of the date a military service member or military spouse submits the information required by the rule. The proposed amendment further provides that, in the event of a divorce or similar event that affects a person's status as a military spouse, the spouse may continue to engage in the business or occupation until the third anniversary of the date the spouse received the verification letter.
New §351.6 establishes alternative licensing for military service members, military spouses, and military veterans. Alternative licensing is appropriate when the military service member, military spouse, or military veteran is currently licensed in good standing with another jurisdiction that has licensing requirements substantially equivalent to the requirements of a license in Texas; or held the same license in Texas within the preceding five years. The new rule provides that HHSC has 30 days from the date a military service member, military spouse, or military veteran submits an application for alternative licensing to process the application and issue a license to a qualified applicant.
FISCAL NOTE
Trey Wood, Chief Financial Officer, has determined that for each year of the first five years that the rules will be in effect, enforcing or administering the rules does not have foreseeable implications relating to costs or revenues of state or local governments.
There are no fees imposed when a military service member or military spouse submits the request for recognition under §351.3 or during the alternative licensing process for military service members, military spouses, and military veterans under §351.6, and HHSC may review such requests and applications with current resources.
GOVERNMENT GROWTH IMPACT STATEMENT
HHSC has determined that during the first five years that the rules will be in effect:
(1) the proposed rules will not create or eliminate a government program;
(2) implementation of the proposed rules will not affect the number of HHSC employee positions.
(3) implementation of the proposed rules will result in no assumed change in future legislative appropriations;
(4) the proposed rules will not affect fees paid to HHSC;
(5) the proposed rules will create a new rule;
(6) the proposed rules will expand an existing rule;
(7) the proposed rules will increase the number of individuals subject to the rule; and
(8) the proposed rules will not affect the state's economy.
SMALL BUSINESS, MICRO-BUSINESS, AND RURAL COMMUNITY IMPACT ANALYSIS
Trey Wood has also determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities. The rules do not impose any additional costs on small businesses, micro-businesses, or rural communities that are required to comply with the rules.
LOCAL EMPLOYMENT IMPACT
The proposed rules will not affect a local economy.
COSTS TO REGULATED PERSONS
Texas Government Code §2001.0045 does not apply to these rules because the rules do not impose a cost on regulated persons and the rules are necessary to implement legislation that does not specifically state that Section 2001.0045 applies to the rule.
PUBLIC BENEFIT AND COSTS
Stephen Pahl, Deputy Executive Commissioner for Regulatory Services, has determined that for each year of the first five years the rules are in effect, the public will benefit from additional licensed individuals being able to serve them. Members of the public who are military service members on active duty, military veterans, or military spouses will benefit from the ability to engage in their licensed profession in Texas.
Trey Wood has also determined that for the first five years the rules are in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rules because the proposed rules are not expected to have any economic costs for persons required to comply because there are no fees or costs imposed on those required to comply.
TAKINGS IMPACT ASSESSMENT
HHSC has determined that the proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code §2007.043.
PUBLIC COMMENT
Written comments on the proposal may be submitted to HHSC Regulatory Rules by email to Regulatory_Rules@hhs.texas.gov.
To be considered, comments must be submitted no later than 21 days after the date of this issue of the Texas Register. Comments must be (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered before 5:00 p.m. on the last working day of the comment period; or (3) emailed before midnight on the last day of the comment period. If the last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate "Comments on Proposed Rule 23R069" in the subject line.
STATUTORY AUTHORITY
The proposed amendment and new rule are authorized by Texas Government Code §531.0055, which provides that the Executive Commissioner of HHSC shall adopt rules for the operation and provision of services by the health and human services agencies, and Texas Health and Safety Code §1001.075, which authorizes the Executive Commissioner of HHSC to adopt rules and policies necessary for the operation and provision of services by HHSC and for the administration of Texas Health and Safety Code Chapter 1001.
The amendment and new rule affect Texas Government Code §531.0055, Texas Health and Safety Code Chapter 1001, and Texas Occupations Code Chapter 55.
§351.3.Recognition of Out-of-State License
of Military Service Members and Military Spouses [Spouse].
(a) For the purposes of this section, the definitions found in Texas Occupations Code §55.001 are hereby adopted by reference. This section establishes requirements and procedures authorized or required by Texas Occupations Code, Chapter 55, and does not modify or alter rights that may be provided under federal law.
(b) This section applies to all licenses to engage
in a business or occupation which the Texas Health and
Human Services Commission (HHSC) issues to an individual under authority
granted by the laws of the State of Texas. A[, unless
a] more specific rule concerning recognition of out-of-state
licenses of military service members and military spouses may also apply but only to the extent the more specific rule does
not conflict with this rule. Any conflicts between this rule and the
more specific rule are resolved in favor of this rule. [applies
to a license type issued by HHSC.]
(c) A military service member or military spouse may engage in a business or occupation as if licensed in the State of Texas without obtaining the applicable license in Texas if the military service member or military spouse:
(1) is currently licensed in good standing with [by] another jurisdiction that has licensing requirements substantially
equivalent to the requirements of a license in this state;
(2) notifies HHSC in writing of the military service member's or military spouse's intent to practice in this state;
(3) submits to HHSC proof of the military service member's or military spouse's residency in this state and a copy of the military service member's or military spouse's military identification card; and
(4) receives a verification letter from HHSC that:
(A) HHSC has verified the military service member's
or military spouse's license in another [the
other] jurisdiction; and
(B) the military service member or military spouse is authorized to engage in the business or occupation in accordance with Texas Occupations Code §55.0041 and rules for that business or occupation.
(d) HHSC will review and evaluate the following criteria, if relevant to a Texas license, when determining whether another state's licensing requirements are substantially equivalent to the requirements for a license under the statutes and regulations of this state:
(1) whether the other state requires an applicant to
pass an examination that demonstrates competence in the field [in
order] to obtain the license;
(2) whether the other state requires an applicant to
meet any experience qualifications [in order] to obtain
the license;
(3) whether the other state requires an applicant to
meet any education qualifications [in order] to obtain
the license; and
(4) the other state's license requirements, including the scope of work authorized to be performed under the license issued by the other state.
(e) The military service member or military spouse must submit:
(1) a written request to HHSC for recognition of the military service member's or military spouse's license issued by the other state; no fee will be required;
(2) any form and additional information regarding the license issued by the other state required by the rules of the specific program or division within HHSC that licenses the business or occupation;
(3) if required by the program, proof of residency in this state, which includes a copy of the permanent change of station order for the military service member or the military spouse;
(4) a copy of the military service member's or military spouse's identification card; and
(5) proof the military service member or, with respect to a military spouse, the military service member to whom the spouse is married is stationed at a military installation in Texas.
(f) HHSC has 30 days from the date a military
service member or military spouse submits the information required
by subsection (e) of this section to: [Upon verification
from the licensing jurisdiction of the military spouse's license and
if the license is substantially equivalent to a Texas license, HHSC
shall issue a verification letter recognizing the licensure as the
equivalent license in this state.]
(1) verify that the member or spouse is licensed in good standing in a jurisdiction that has licensing requirements that are substantially equivalent to the requirements for a license under the statutes and regulations of this state; and
(2) issue a verification letter recognizing the licensure as the equivalent license in this state.
(g) The verification letter will expire three years from date of issuance or when the military service member or, with respect to a military spouse, the military service member to whom the spouse is married is no longer stationed at a military installation in Texas, whichever comes first. The verification letter may not be renewed.
(h) In the event of a divorce or similar event that affects a person's status as a military spouse, the spouse may continue to engage in the business or occupation under the authority of this section until the third anniversary of the date the spouse received the verification described by subsection (f) of this section. A similar event includes the death of the military service member or the military service member's discharge from the military.
(i) [(h)] A replacement letter
may be issued after receiving a request for a replacement letter in
writing or on a form, if any, required by the rules of the specific
program or division within HHSC that licenses the business or occupation;
no fee will be required.
(j) [(i)] The military service
member or military spouse shall comply with all applicable laws,
rules, and standards of this state, including applicable Texas Health
and Safety Code chapters and all relevant Texas Administrative Code provisions.
(k) [(j)] HHSC may withdraw or
modify the verification letter for reasons including the following:
(1) the military service member or military
spouse fails to comply with subsection (j)[(i)]
of this section; or
(2) the military service member's or military spouse's licensure required under subsection (c)(1) of this section expires or is suspended or revoked in another jurisdiction. §351.6.Alternative Licensing for Military Service Members, Military Spouses, and Military Veterans.
(a) For the purposes of this section, the definitions found in Texas Occupations Code §55.001 are hereby adopted by reference. This section establishes requirements and procedures authorized or required by Texas Occupations Code, Chapter 55, and does not modify or alter rights that may be provided under federal law.
(b) This section applies to all licenses to engage in a business or occupation which the Texas Health and Human Services Commission (HHSC) issues to an individual under authority granted by the laws of the State of Texas. A more specific rule concerning alternative licensing for military service members, military spouses, and military veterans may also apply but only to the extent the more specific rule does not conflict with this rule. Any conflicts between this rule and the more specific rule are resolved in favor of this rule.
(c) Notwithstanding any other rule, HHSC may issue a license to an applicant who is a military service member, military spouse, or military veteran if the military service member, military spouse, or military veteran:
(1) is currently licensed in good standing with another jurisdiction that has licensing requirements substantially equivalent to the requirements of a license in this state; or
(2) held the same license in Texas within the preceding five years.
(d) HHSC may waive any requirement to obtaining a license for an applicant described by subsection (c) of this section after reviewing the applicant's credentials.
(e) If an applicant described by subsection (c) of this section must demonstrate competency to meet the requirements for obtaining the license, HHSC may accept alternate forms of competency including:
(1) proof of a passing score for any national exams required to obtain the occupational license;
(2) if specific professional experience is required, proof of duration or hours that meet the professional experience requirement; and
(3) if specific training hours are required for obtaining the license, proof of verified hours related to training experience.
(f) If required by the specific program or division within HHSC that licenses the business or occupation, a military service member or military spouse must provide proof of residency in this state, which includes a copy of the permanent change of station order for the military service member or the military spouse or any other documentation HHSC deems appropriate to verify residency.
(g) HHSC has 30 days from the date a military service member, military spouse, or military veteran submits an application for alternative licensing to process the application and issue a license to an applicant who qualifies for the license.
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 September 15, 2023.
TRD-202303439
Karen Ray
Chief Counsel
Texas Health and Human Services Commission
Earliest possible date of adoption: October 29, 2023
For further information, please call: (512) 574-2228