Proposed Rules Title 16

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 B, §60.23; and Subchapter C, §60.33 and §60.34; proposes the repeal of existing rules at Subchapter C, §60.30 and §60.31; and Subchapter E, §§60.50 - 60.54; and proposes new rules at Subchapter C, §60.30, §60.31, and §60.37; and Subchapter E, §§60.50 - 60.56, regarding the Procedural Rules of the Commission and the Department. These proposed changes are referred to as "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 Texas Department of Licensing and Regulation (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 update multiple subchapters and sections under Chapter 60 and are part of a larger effort to update the entire chapter. The proposed rules make substantive and clean-up changes to the agency's procedural rules and include changes resulting from staff and strategic planning, the required four-year rule review, and the Department's Sunset legislation.

Staff and Strategic Planning Changes

The proposed rules include changes suggested by the General Counsel's Office and suggested during past strategic planning sessions. The changes include updates to the rules regarding license applications, renewals, and denials; criminal history background checks; foreign transcripts and degrees; temporary licenses; voluntary license surrender; examination rescheduling, accommodations, and results; and reexaminations. The changes also include reorganization of existing rules, and editorial changes to "Commission," "Department," and "Executive Director" to use lower case terminology to be consistent with the statutes and consistent across the Chapter 60 rule subchapters.

Four-Year Rule Review Changes

The proposed rules also include changes as a result of the required four-year rule review conducted under Texas Government Code §2001.039. The Department conducted the required rule review of the rules under 16 TAC Chapter 60, and the Commission readopted the rule chapter in its entirety and in its current form. (Proposed Rule Review, 46 TexReg 2589, April 16, 2021. Adopted Rule Review, 46 TexReg 4701, July 30, 2021).

In response to the Notice of Intent to Review that was published, the Department received public comments from six interested parties regarding Chapter 60, but none of those public comments relate to the rules in this proposal.

The proposed rules include changes identified by Department staff during the rule review process. The changes are reflected throughout the proposed rules and include updates to the rules regarding initial license applications; criminal history background checks; license renewals; late renewals; temporary licenses; substantially equivalent license requirements; and the examination-related requirements. The changes also include clarifying the rules, using plain talk language, and making the same editorial changes to use lower case terminology.

Sunset Bill Statutory Changes

The proposed rules incorporate and reflect the changes made to Texas Occupations Code, Chapter 51, as a result of House Bill (HB) 1560, 87th Legislature, Regular Session (2021), the Department's Sunset legislation. HB 1560, Article 1, Section 1.10, added §51.359, Refunds, to Chapter 51. The proposed rules add refunds into the list of possible disciplinary actions that may be imposed by the Commission or the Executive Director.

The proposed rules are necessary to: update the rules regarding the sanction authority of the Commission and the Executive Director; update and supplement the requirements and the procedures for initial and renewal license applications; clarify the temporary license authority and applicability; update and clarify the substantially equivalent license requirements and procedures; add procedures for the voluntary surrender of a license; update and supplement the requirements and procedures regarding license examinations; and reorganize and clean up existing rules where necessary.

SECTION-BY-SECTION SUMMARY

Subchapter B. Powers and Responsibilities.

The proposed rules amend §60.23, Commission and Executive Director--Imposing Sanctions and Penalties. The proposed rules amend subsection (a) to remove the inspection and investigation provision under paragraph (3). This provision implements Texas Occupations Code §Sec. 51.351, Inspections and Investigations, but more comprehensive rules have been added to Chapter 60, Subchapter H, under §60.203, Cooperation with Investigation of Complaints, and §60.222, Cooperation with Inspections. The provision under §60.23(a)(3) is no longer necessary and is being repealed. The subsequent paragraphs under subsection (a) have been renumbered.

The proposed rules amend subsection (b) to add new paragraph (7), which incorporates the statutory authority of the Commission and the Executive Director under Texas Occupations Code §51.359 to order refunds to consumers. This new statutory authority was added by HB 1560. The proposed rules renumber the subsequent paragraph and make technical changes to the provisions under paragraphs (6) and (8).

Subchapter C. License Applications and Renewals.

The proposed rules repeal existing §60.30, Initial License Applications. The provisions in this repealed rule have been updated and supplemented under new §60.30, Initial License Applications.

The proposed rules add new §60.30, Initial License Applications. This new rule includes provisions from existing §60.30, which is being repealed, and updates and supplements the current requirements and procedures for initial license applications. The proposed rules update the existing provision under subsection (a) regarding the items required to be submitted for an initial license application; update the existing provision under subsection (b) regarding an incomplete initial application that includes the right to request a hearing; and add a new provision under subsection (c) regarding an insufficient or not qualified initial application that includes the right to request a hearing. The proposed rules add a new provision under subsection (d) that reflects the current requirements and processes regarding criminal history background checks for initial licenses for individuals and businesses; and add a new provision under subsection (e) that standardizes the process and requirements regarding applicants with foreign transcripts or foreign degrees. The proposed rules add a new provision under subsection (f) regarding the denial of an initial license application or denial of the opportunity to take an examination that links the denial under Subchapter C to the contested case process and rules under Subchapter I. This provision reflects the requirements under Texas Government Code §2001.054, Licenses, and Texas Occupations Code §51.354, Right to Hearing; Administrative Procedure.

The proposed rules repeal existing §60.31, License Renewal Applications. The provisions in this repealed rule have been updated and supplemented under new §60.31, License Renewal Applications.

The proposed rules add new §60.31, License Renewal Applications. This new rule includes provisions from existing §60.31, which is being repealed, and updates and supplements the current requirements and procedures for license renewal applications. The proposed rules update the existing provisions under subsections (a) - (c) regarding the license renewal notice, the items required to be submitted for license renewal, and the requirements that must be completed before the license expires. The proposed rules add a new provision under subsection (d) that clarifies that if a person completes all the renewal requirements and pays the renewal fees as prescribed, the license will not expire. This provision addresses situations where the license holder has met all the requirements, but the renewal is still being processed by the Department. The proposed rules update the existing provisions under subsection (e) to reiterate that if a person does not complete all the renewal requirements and pay the required renewal fee as prescribed, the license will expire and the person may not perform any act that requires a license. The proposed rules add a new provision under subsection (f) that reflects the current requirements and processes regarding criminal history background checks for license renewals for individuals and businesses.

The proposed rules update and expand the existing late renewal provisions under subsection (g) to address late license renewals that fall within the late renewal deadlines established in Texas Occupations Code §51.401. This subsection includes references to the statutory late renewal deadlines; specifies the requirements for late renewing a license; explains that a person with a late renewal has a gap in licensure and may not perform tasks that require a license; and prohibits a person from obtaining a new license if the person is still eligible to late renew the existing license. A person may not apply for a new license to avoid paying the higher late renewal fees and completing any required continuing education.

The proposed rules update the existing provisions under subsection (h) to address the situation involving a person whose license has expired beyond the late renewal deadlines established in Texas Occupations Code §51.401. A person who does not meet these statutory deadlines must apply for a new license and comply with the requirements for obtaining an original license, including any examination requirements and the payment of fees. The proposed rules clarify that a person must retake any licensing examinations required to apply for a new license and that any previous licensing examination results will not be accepted. This provision implements the statutory provisions under Texas Occupations Code §51.401(d) and reflects the Department's interpretation of those provisions.

The proposed rules add a new provision under subsection (i) to address the situation involving a person who was previously licensed in Texas and is currently licensed and practicing in another state. Under this provision, a person who meets the specified eligibility conditions may obtain a new Texas license without reexamination. The person must pay a fee that is two times the required renewal fee for the license. This provision reflects the statutory provisions under Texas Occupations Code §51.401(e) and incorporates this situation into the rules with the other licensing situations.

The proposed rules add a new provision under subsection (j) regarding the denial of a license renewal application that links the denial under Subchapter C to the contested case process and rules under Subchapter I. This provision reflects the requirements under Texas Government Code §2001.054, Licenses, and Texas Occupations Code §51.354, Right to Hearing; Administrative Procedure.

The proposed rules amend existing §60.33, Temporary License. The proposed rules update and clarify the existing rule in accordance with Texas Occupations Code §51.407, Temporary License. The proposed rules change the title of the section from "Temporary License Applications" to "Temporary License." The proposed rules add new subsection (a), which includes statutory authority language and clarifying language regarding the applicability of this rule, and they add new subsection (f), which states that a temporary license holder is subject to the specified statutes and rules of the Department and the applicable program. The proposed rules also re-letter the subsections and update a cross-reference.

The proposed rules amend existing §60.34, Substantially Equivalent License Requirements. The proposed rules update and clarify the substantially equivalent license requirements and procedures. The proposed rules update the applicability provision under subsection (a)(1) to reflect the statutory provisions under Texas Occupations Code §51.4041, Alternative Qualifications for License; and update subsection (a)(2) to use parallel construction. The proposed rules add new subsection (b) to define "another jurisdiction" or "other jurisdiction" for purposes of this section; add new subsection (e) that allows the Department to request additional documents or information in order to evaluate the substantially equivalent criteria; and add new subsection (f) to clarify that the Department has the final authority to determine substantially equivalent. The proposed rules also re-letter the existing subsections as necessary and update the terminology throughout the section.

The proposed rules add new §60.37, Voluntary Surrender of a License. The proposed rules add new procedures for the voluntary surrender of a license in accordance with the guidance provided under Texas Attorney General Opinion KP-0080 (May 3, 2016). The proposed rules make the license surrender process a standardized, administrative process and separate the voluntary license surrender process from any enforcement or disciplinary actions or process. The proposed rules allow a license holder to voluntarily surrender a license; establish the conditions under which the surrender request will be granted; provide that surrendering the license is not a defense and does not affect any investigation or disciplinary action; and provide that a voluntarily-surrendered license may not be renewed and that any license fees paid will not be refunded.

Subchapter E. Examinations.

The proposed rules under Subchapter E update and supplement the requirements and procedures regarding license examinations and address all aspects of the examination process. The existing rules under §§60.50 - 60.54 are being repealed and replaced with new rules under §§60.50 - 60.56.

The proposed rules repeal existing §60.50, Examination Rescheduling. The provisions in this repealed rule have been incorporated into new §60.51, Examination Scheduling and Rescheduling.

The proposed rules add new §60.50, Examination Providers. The proposed rules explain the Department's delegation of its statutory authority and responsibilities to provide or administer licensing examinations through a contracted third-party examination provider. The proposed rules state that the Department's examination provider must comply with all statutes and rules applicable to the Department regarding examinations and that the Department's examination provider serves as the point of contact for examination candidates. The proposed rules explain the applicability of the provisions in this subchapter.

The proposed rules repeal existing §60.51, Examination Fee Refund. The provisions in this repealed rule have been incorporated into new §60.52, Examination Fees and Refunds.

The proposed rules add new §60.51, Examination Scheduling and Rescheduling. The new rule includes provisions from existing §60.50, Examination Rescheduling, which is being repealed. The proposed rules under this section implement provisions under Texas Occupations Code §51.403, Examination Fee Refund, and Texas Occupations Code §54.002, Examination Scheduled on Religious Holy Day. The proposed rules under subsection (a) establish the requirements for scheduling an examination and direct the examination candidate to schedule the examination directly with the Department's examination provider, subject to the availability of examination appointments.

The proposed rules under subsection (b) establish the requirements for canceling and rescheduling an examination and direct the examination candidate to notify the Department's examination provider directly to cancel and reschedule an examination. The proposed rules provide that an examination candidate may cancel and reschedule an examination for any reason, which would include for religious holy days, as provided under Texas Occupations Code §54.002. The reason for canceling and rescheduling an examination does not need to be reviewed or approved by the Department or its examination provider. The proposed rules also provide the requirements for canceling and rescheduling an examination at no charge and define what "emergency" means for purposes of this section as required by Texas Occupations Code §51.403. The examination may be rescheduled subject to the availability of examination appointments.

The proposed rules repeal existing §60.52, Examination Security. The provisions in this repealed rule have been incorporated into new §60.54, Examination Security.

The proposed rules add new §60.52, Examination Fees and Refunds. This new rule includes provisions from existing §60.51, Examination Fee Refund, which is being repealed. The proposed rules under this section implement provisions under Texas Occupations Code §51.402, Examinations, and Texas Occupations Code §51.403, Examination Fee Refund. The proposed rules under subsection (a) require an examination candidate to pay the examination fee to the Department's examination provider and explain that information about the examination and the examination provider will be posted on the Department's website. The proposed rules under subsection (b) address an examination candidate who is unable to take the examination and who wants to obtain a refund of the examination fee. The proposed rules provide the requirements for requesting a refund and define what "reasonable notice" and "emergency" are for purposes of this section as required by Texas Occupations Code §51.403.

The proposed rules repeal existing §60.53, Access to Examinations. The provisions in this repealed rule have been incorporated into new §60.53, Examination Accommodations.

The proposed rules add new §60.53, Examination Accommodations. This new rule includes and expands the provisions under existing §60.53, Access to Examinations, which is being repealed. The proposed rules under this section include the procedures for requesting examination accommodations in accordance with the Americans with Disabilities Act (ADA) of 1990, its regulations, and any subsequent amendments; Texas Occupations Code §54.003, Examination Accommodations for Person with Dyslexia; and Texas Attorney General Opinion JC-0050 (May 17, 1999). Dyslexia is included and covered under the ADA, so the procedures in this rule implement both statutes and address any requests for examination accommodations.

The proposed rules update the existing provisions under subsection (a) to update the citation to the ADA and to clarify that the Department's examination provider will provide reasonable accommodations for an examination administered to an examination candidate with a disability. The proposed rules add new provisions under subsection (b) that provide the required procedures for requesting reasonable accommodations for an examination. The proposed rules update the existing provisions under subsection (c) to require that the written request for an examination in a foreign language be submitted before scheduling the examination.

The proposed rules repeal existing §60.54, Examination Results. The provisions in this repealed rule have been replaced with new §60.56, Validity and Acceptance of Examination Results; Reexamination.

The proposed rules add new §60.54, Examination Security. This new rule includes provisions from existing §60.52, Examination Security, which is being repealed. The proposed rules update existing provisions under subsection (a) to require an examination candidate to comply with all examination security requirements of any examination provider; update the existing provisions under subsection (b) to address the use of specified methods of assistance if available; update the existing provisions under subsection (c) to add activities to the list of conduct that violate the examination security rule; and update the existing provision under subsection (d) to provide that the contents of a license examination are confidential. The proposed rules add new provisions under subsection (e) to address the consequences if a person is caught during the examination violating the examination security rule; and add new provisions under subsection (f) to address the consequences if the person is found to have violated the examination security rule.

The proposed rules add new §60.55, Examination Results. This new rule implements Texas Occupation Code §51.402, Examinations. The proposed rules under subsections (a) - (b) require the Department's examination provider to notify a person regarding the person's examination results not later than 30 days after the examination, and to provide an explanation if the results will be delayed for longer than 90 days. The proposed rules under subsection (c) state that a person will receive an analysis of the person's performance on the examination from the examination provider. While the statute allows a person who fails a license examination the right to request in writing an analysis of the person's performance on the examination, in practice any person taking an examination automatically receives a diagnostic report from the examination provider, without the need to submit a written request to receive the analysis, and regardless of whether the person fails or passes the examination. The proposed rules under section (d) prohibit a person from presenting falsified or fraudulent documents concerning the person's examination results. This provision has been relocated from existing §60.52, Examination Security, which is being repealed.

The proposed rules add new §60.56, Validity and Acceptance of Examination Results; Reexamination. This new rule replaces existing §60.54, Examination Results, which is being repealed, and which provides that examination results are valid for one year from the date of the examination, unless stated otherwise in specific program statutes or rules. New §60.56 extends the one year period for how long the examination results are valid for new license applicants who have never held a Texas license. New §60.56 makes a distinction between new license applicants who have never held a Texas license and license applicants who previously held a Texas license and are applying for a new license. The distinctions are necessary and required due to Occupation Code §51.401, License Expiration and Renewal, for expired licenses, and due to Occupations Code, Chapters 51 and 53, and Texas Attorney General Opinion GA-0064 (April 28, 2003) for revoked licenses.

The proposed rules under subsection (a) state the purpose and applicability of new §60.56, which addresses the validity and acceptance of licensing examination results and whether a person must retake a licensing examination.

The proposed rules under subsection (b) address examination results for a person who is applying for a new license issued by the Department and who has not previously held that license. The proposed rules extend the time period examination results are valid from one year to four or five years, depending on the term of the license sought. After this time period, a person must retake any examinations required to apply for a new license. Any previous licensing examination results will not be accepted. This change recognizes that the current one-year time limit is too restrictive, but it also recognizes that occupations and professions may change over the years and that an old examination may not be testing on today's issues. The examination serves as proof of competency, so the examination results cannot be valid indefinitely.

The proposed rules under subsection (c) address examination results for a person who previously held a Texas license and is applying for a new license. The proposed rules address previous examination results and whether the person has to take any required licensing examinations again. As explained under subsection (c)(1), the proposed rules group the different situations involving previous license holders into one subsection, and the specific situations are addressed in each paragraph. The proposed rules reflect the Department's interpretation of the statutory provisions under Texas Occupations Code, Chapters 51 and 53, and Texas Attorney General Opinion GA-0064. These provisions prevent the examination expiration dates under subsection (b) from applying to the situations under subsection (c).

The proposed rules under subsection (c)(2) address the situation involving a person whose license has expired beyond the late renewal deadlines established in Texas Occupations Code §51.401. A person who does not meet these statutory deadlines must apply for a new license and comply with the requirements for obtaining an original license, including any examination requirements and the payment of fees. The proposed rules clarify that a person must retake any licensing examinations required to apply for a new license and that any previous licensing examination results will not be accepted. This provision implements the statutory provisions under Texas Occupations Code §51.401(d).

The proposed rules under subsection (c)(3) address the situation involving a person who was previously licensed in Texas and is currently licensed and practicing in another state. Under this provision, a person who meets the specified eligibility conditions may obtain a new Texas license without reexamination. This provision reflects the statutory provisions under Texas Occupations Code §51.401(e).

The proposed rules under subsection (c)(4) address the situation involving a person whose license was revoked. This provision provides the general rule that a person whose license has been revoked must retake any examinations required to apply for a new license. Any previous licensing examination results will not be accepted. The provision also provides a limited exception for a person who reapplies for licensure after having a license revoked solely for failure to pay an administrative penalty or failure to pay an insufficient funds fee. Under this exception, the person will not be required to retake an examination required to apply for a new license, but only if the person's license has been in a revoked status for less than three years at the time of the new application. The proposed rules reflect the Department's interpretation of Texas Occupations Code, Chapters 51 and 53; Texas Attorney General Opinion GA-0064; the existing rule under §60.36; and the Department's policy regarding revocations and retaking an examination pursuant to Texas Occupations Code §51.355 and existing rule §60.36.

The proposed rules under subsection (c)(5) address the situation involving a person who was previously licensed in Texas but voluntarily surrendered the person's Texas license. Under this provision, the person may obtain a new license by complying with the requirements and procedures, including the examination requirements, for obtaining an original license. The person must retake any examinations required to apply for a new license. Any previous licensing examination results will not be accepted. This provision is tied to the new rule under §60.37.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Tony Couvillon, Policy Research and Budget 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 the state or local government as a result of enforcing or administering the proposed rules.

Mr. Couvillon also has 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.

Mr. Couvillon has determined that for each year of the first five years the proposed rules are in effect, enforcing or administering the proposed rules does not have foreseeable implications relating to costs or revenues of state government or local governments.

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 rules that are more comprehensive and give applicants, license holders, and the public a better understanding of their rights and responsibilities with the Department; the processes the Department currently uses when processing applications, administering examinations, and ordering restitution to consumers; and what to expect when interacting with the Department. The rules further explain the Department's authority and allow applicants and license holders to be better aware of the statutory requirements on them and on the Department.

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, are 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 create a new regulation. The proposed rules create a new regulation by creating a process for the voluntary surrender of a license; explaining the Department's authority to delegate its statutory authority and responsibilities regarding examinations via contract to a third-party examination provider; and adding new statutory requirements where necessary.

6. The proposed rules expand, limit, or repeal an existing regulation. The proposed rules expand a regulation by adding the statutory authority of the Commission and Executive Director to order the payment of a refund to a consumer; adding specifics to the initial and renewal license application processes to match and update current policies and procedures and match the authority and requirements of Texas Occupations Code, Chapter 51; clarifying the authority for temporary licenses; adding specifics to the policies, procedures, and requirements for issuing a license to the holder of a substantially equivalent license; adding specifics to the policies, procedures, and requirements of all aspects of the examination process.

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

Comments on the proposed rules may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/gcerules ; 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 B. POWERS AND RESPONSIBILITIES

16 TAC §60.23

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement that chapter and any other law establishing a program regulated by the Department.

In addition, the proposed rules are proposed under the authority of other state laws that apply to state agencies. These laws include Texas Occupations Code, Chapters 53, 54, 55, and 108 (Subchapter B); and Texas Government Code, Chapters 411 (Subchapter F), 2001, and 2005.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapter 51, and the program statutes for all the Department programs: Agriculture Code, Chapter 301 (Weather Modification and Control); Education Code §51.308, §29.902, and Chapter 1001 (Driver Education and Safety); Government Code, Chapters 171 (Court-Ordered Programs); and 469 (Elimination of Architectural Barriers); Health and Safety Code, Chapters 401, Subchapter M (Laser Hair Removal); 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); 1901 (Water Well Drillers); 1902 (Water Well Pump Installers): 1952 (Code Enforcement Officers); 1953 (Sanitarians); 1958 (Mold Assessors and Remediators); 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); Transportation Code, Chapters 521 (Driver Education and Safety); 551A (Off-Highway Vehicle Training and Safety); and 662 (Motorcycle Operator Training and Safety); and Utilities Code, Chapter 42 (Electric Vehicle Charging Stations).

In addition, the statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 53, 54, 55, and 108 (Subchapter B); and Texas Government Code, Chapters 411 (Subchapter F), 2001, and 2005. No other statutes, articles, or codes are affected by the proposed rules.

The legislation that enacted the statutory authority under which the proposed rules under Subchapter B, §60.23 are proposed to be adopted is House Bill (HB) 1560, 87th Legislature, Regular Session (2021).

§60.23.Commission and Executive Director--Imposing Sanctions and Penalties.

(a) The commission or executive director may sanction a license holder, applicant, or other person, if the person:

(1) obtains or attempts to obtain a license by fraud or false representation;

(2) falsifies any document submitted to the department or commission;

[(3) refuses to permit or fails to cooperate in an inspection or investigation; interferes with an inspection or investigation conducted by an authorized representative of the commission or department; or threatens or intimidates an authorized representative of the commission or department in connection with an inspection or investigation;]

(3) [~~(4)~~] permits the use or display of a license by a person not authorized by law to use that license;

(4) [~~(5)~~] has a conviction, a deferred adjudication, or other criminal history that affects license eligibility as prescribed under Subchapter D; or

(5) [~~(6)~~] violates Texas Occupations Code, Chapter 51, a law establishing a regulatory program administered by the department, or a rule or order of the commission or the executive director.

(b) The commission or executive director may:

(1) - (5) (No change.)

(6) impose administrative penalties against the person after considering the factors set forth in Texas Occupations Code §51.302(b); [or]

(7) order the payment of a refund to a consumer as prescribed under Texas Occupations Code §51.359; or

(8) [~~(7)~~] take a [~~any~~ ] combination of actions under paragraphs (1) - (7) [~~(6)~~].

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 9, 2024.

TRD-202403656

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

SUBCHAPTER C. LICENSE APPLICATIONS AND RENEWALS

16 TAC §60.30, §60.31

STATUTORY AUTHORITY

The proposed repeals are proposed under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement that chapter and any other law establishing a program regulated by the Department.

In addition, the proposed repeals are proposed under the authority of other state laws that apply to state agencies. These laws include Texas Occupations Code, Chapters 53, 54, 55, and 108 (Subchapter B); and Texas Government Code, Chapters 411 (Subchapter F), 2001, and 2005.

The statutory provisions affected by the proposed repeals are those set forth in Texas Occupations Code, Chapter 51, and the program statutes for all the Department programs: Agriculture Code, Chapter 301 (Weather Modification and Control); Education Code §51.308, §29.902, and Chapter 1001 (Driver Education and Safety); Government Code, Chapters 171 (Court-Ordered Programs); and 469 (Elimination of Architectural Barriers); Health and Safety Code, Chapters 401, Subchapter M (Laser Hair Removal); 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); 1901 (Water Well Drillers); 1902 (Water Well Pump Installers): 1952 (Code Enforcement Officers); 1953 (Sanitarians); 1958 (Mold Assessors and Remediators); 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); Transportation Code, Chapters 521 (Driver Education and Safety); 551A (Off-Highway Vehicle Training and Safety); and 662 (Motorcycle Operator Training and Safety); and Utilities Code, Chapter 42 (Electric Vehicle Charging Stations).

In addition, the statutory provisions affected by the proposed repeals are those set forth in Texas Occupations Code, Chapters 53, 54, 55, and 108 (Subchapter B); and Texas Government Code, Chapters 411 (Subchapter F), 2001, and 2005. No other statutes, articles, or codes are affected by the proposed repeals.

§60.30.Initial License Applications.

§60.31.License Renewal Applications.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 9, 2024.

TRD-202403660

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

16 TAC §§60.30, 60.31, 60.33, 60.34, 60.37

STATUTORY AUTHORITY

§60.30.Initial License Applications.

(a) An applicant for an initial license must submit all required information, documents, and fees in a form and manner prescribed by the department. The department may request additional information as part of the application process, if necessary.

(b) Incomplete Initial Application. An applicant who submits an incomplete application has one year from the date the application is received by the department to submit any missing information, documents, and/or fees.

(1) If the applicant contends that the application is complete and meets the legal requirements for licensure, and the department disagrees, the department will provide the applicant with an opportunity to request a license determination based on the information and documents that have been submitted. If the department denies the application, the department will send a denial letter under subsection (f), and the applicant may request a hearing.

(2) After one year, an incomplete application shall expire. The applicant must start the license application process over and submit a new application with all required information, documents, and fees as prescribed under subsection (a).

(c) Insufficient or Not Qualified Initial Application. If an applicant provides a complete application that is determined insufficient in meeting the license requirements or if the applicant is determined not qualified to obtain the license, the department will send a denial letter under subsection (f) and the applicant may request a hearing.

(d) Criminal History Background Checks - Initial Applications.

(1) Individual license. An applicant is subject to a criminal history background check pursuant to Occupations Code, Chapters 51 and 53; Government Code, Chapter 411, Subchapter F; the statutes and rules of the specific program; and the department's criminal conviction guidelines. An applicant must submit fingerprints for a background check if required under the specific program statute.

(2) Business license. An individual associated with the business is subject to a criminal history background check, if required under the specific program statute.

(3) Failure to pass a criminal history background check under subsection (d)(1) or (d)(2) may result in denial and/or revocation of the license.

(e) Applicants with Foreign Transcripts or Foreign Degrees.

(1) An applicant with a transcript in a language other than English (foreign transcript) must submit a transcript and a certified translation when applying for licensure.

(A) The foreign transcript must be translated to English to determine if it meets the requirements for licensure for the particular license sought.

(B) The transcript must be translated by the issuing institution or a translator that is certified by the American Translators Association.

(2) An applicant with a degree that was earned at a university in a U.S. territory or a foreign country (foreign degree) must submit a foreign degree evaluation and verification when applying for licensure.

(A) The foreign degree must be evaluated on a course-by-course basis to determine if it meets the requirements for licensure for the particular license sought.

(B) The foreign degree evaluation must be conducted by a foreign degree evaluation service that is a member of the National Association of Credential Evaluation Services (NACES) or the Association of International Credential Evaluators, Inc. (AICE).

(3) The department retains the exclusive authority to determine whether or not to accept a foreign transcript or a foreign degree for licensure.

(f) Denial of Initial License Application or Examination. If the department proposes to deny an initial license application or proposes to deny an applicant the opportunity to take an examination, the denial is considered to be a contested case, and the rules under Subchapter I shall apply.

§60.31.License Renewal Applications.

(a) License Renewal Notices.

(1) The department will send a license renewal notice to the license holder at least 30 days before the license expiration date.

(2) Non-receipt of a license renewal notice does not exempt a person from any requirements of this chapter or the statute or rules governing the specific program. It is the responsibility of the license holder to timely renew the license.

(b) A license holder renewing a license must submit all required information, documentation, and fees in a form and manner prescribed by the department. The department may request additional information as part of the renewal process, if necessary.

(c) To renew and maintain continuous licensure, the license holder must complete the following requirements before the expiration date of the license:

(1) complete all the renewal requirements for the particular license, including any continuing education requirements, if applicable, as prescribed under this chapter and the statutes and rules governing a specific program; and

(2) pay the required renewal fee as prescribed in the rules for the specific program.

(d) If a license holder completes all the renewal requirements for the particular license and pays the required renewal fee as prescribed under subsection (c), the license will not expire, and there will not be a gap in licensure.

(e) If a license holder does not complete all the renewal requirements for the particular license and pay the required renewal fee as prescribed under subsection (c), the license will expire. A person with an expired license may not perform any act that requires a license under this chapter or the statute or rules governing the specific program.

(f) Criminal History Background Checks - Renewal Applications.

(1) Individual license. A license holder is subject to a criminal history background check pursuant to Occupations Code, Chapters 51 and 53; Government Code, Chapter 411, Subchapter F; the statutes and rules of the applicable program; and the department's criminal conviction guidelines.

(2) Business license. An individual associated with the business is subject to a criminal history background check if required under the specific program statute.

(3) Failure to pass a criminal history background check under (f)(1) or (f)(2) may result in denial and/or revocation of the license.

(g) Late Renewals.

(1) A person whose license has expired may late renew the license within the time periods set out in Texas Occupations Code §51.401.

(2) A person who late renews a license must:

(A) complete all the renewal requirements for the particular license, including any required continuing education, if applicable, as prescribed under this chapter and the statutes and rules governing a specific program; and

(B) pay the required late renewal fee as prescribed under §60.83, if the standard renewal fee for the particular license was not paid before the license expired.

(3) A late renewal means the person will have an unlicensed period from the expiration date of the expired license to the issuance date of the renewed license. During the unlicensed period, a person may not perform any act that requires a license under this chapter or the statutes and rules governing the specific program.

(4) A person may not apply for a new license of the same type if the expired license is still within the late renewal time periods set out in Texas Occupations Code §51.401. A person is not eligible for a new license if the existing license is still eligible to be late renewed.

(h) Expired License Beyond Late Renewal Deadlines. Except as provided by subsection (i), if a person does not meet the late renewal deadlines established in Texas Occupations Code §51.401, the person must apply for a new license by complying with the requirements and procedures for obtaining an original license, including any examination requirements and the payment of fees. For a license that requires an examination, the person must retake any licensing examinations required to apply for a new license. Any previous licensing examination results will not be accepted.

(i) Previously Licensed in Texas and Currently Licensed in Another State. Pursuant to Texas Occupations Code §51.401(e), a person who was previously licensed in Texas, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of application may obtain a new Texas license without reexamination. The person must pay to the department a fee that is equal to two times the required renewal fee for the license as prescribed in the rules for the specific program.

(j) Denial of License Renewal Application. If the department proposes to deny a license renewal application, the denial is considered to be a contested case, and the rules under Subchapter I shall apply.

§60.33.Temporary License [~~Applications~~].

(a) This section implements Texas Occupations Code §51.407. It does not affect those programs that have temporary or provisional licenses in their specific program statutes or rules.

(b) [~~(a)~~] This section applies to an applicant who has met all the requirements for an initial license issued under a law administered by the department.

(1) submits a completed application on a department-approved form; and

(2) pays the initial license application fees.

(d) [~~(c)~~] A temporary license expires upon an applicant's receipt of the initial license, but no later than 21 days after the date of issuance of the temporary license.

(e) [~~(d)~~] A temporary license is not renewable.

(f) A temporary license holder is subject to Texas Occupations Code, Chapter 51; the rules under this chapter; and the statutes and rules of the applicable program.

§60.34.Substantially Equivalent License Requirements.

(a) This section is applicable for:

(1) an applicant who holds a current license issued by another jurisdiction that is similar to a license issued by the department; or [~~programs that have statutory authority to review and consider "substantially equivalent" license requirements of other states or jurisdictions; or~~]

(2) an applicant who is a military service member, military veteran, or military spouse and who is [~~applicants who are military service members, military veterans, or military spouses and who are~~] applying for a license under Subchapter K.

(b) For purposes of this section, "another jurisdiction" or "other jurisdiction" means a U.S. state, the District of Columbia, a municipality or local jurisdiction, or a U.S. territory.

(c) [~~(b)~~] Based on the specific license, a license holder from another [~~state or~~] jurisdiction may be eligible for a Texas license if the other [~~state or~~] jurisdiction has licensing requirements that are substantially equivalent to the Texas licensing requirements.

(d) [~~(c)~~] The department will review and evaluate the following criteria in determining "substantially equivalent" as it relates to and is applicable to a specific license:

(1) Education requirements--including the amount of time (hours, months or years) or credits needed to complete the course/program/curriculum;

(2) Examination requirements--including whether the other [~~state or~~] jurisdiction requires an applicant to pass any examinations in order to obtain the license, the type of examinations (written, practical or both), and whether the applicant passed the required examinations in the other [~~state or~~] jurisdiction;

(3) Experience requirements--including the length of time that the applicant has held a license in another jurisdiction [~~state~~], and the amount of time (hours, months or years) the applicant has worked either independently or under the supervision of another license holder [~~licensee~~] as defined by statute or rule for a specific license;

(4) Training requirements--including training through apprenticeship programs or on-the-job training, as those terms are defined by statute or rule for a specific license; and

(5) License requirements--including scope of work authorized to be performed under the license issued by the other [~~state or~~] jurisdiction, and the length of time that the applicant has held a license in another [~~state or~~] jurisdiction.

(e) The department may require an applicant under this section to provide additional supporting documentation and information in order for the department to evaluate the criteria under subsection (d) as it relates to and is applicable to a specific license.

(1) Any foreign transcripts or foreign degrees must be translated and evaluated as prescribed under §60.30. Any other documents in a language other than English must be translated in accordance with the provisions under §60.30.

(2) The applicant shall bear all expenses incurred under this section during the evaluation process.

(f) The department retains the exclusive authority to determine whether or not the licensing requirements for a license issued by another jurisdiction are substantially equivalent to the requirements for the Texas license sought.

§60.37.Voluntary Surrender of a License.

(a) A license holder may voluntarily surrender a license to the department by submitting a request in a form and manner prescribed by the department.

(b) The request will be granted if the license holder:

(1) holds a current, unexpired license that is not suspended or revoked;

(2) does not have a pending complaint or a pending enforcement case; and

(3) is not out of compliance with a disciplinary order.

(c) The surrender of a license to the department is not a defense to an alleged or actual violation of any statutes or rules committed by the license holder. In addition, surrendering a license to the department in no way affects the authority of the department to initiate or continue any investigation or disciplinary proceeding concerning the license holder.

(d) A license that has been voluntarily surrendered may not be renewed. A license holder who has voluntarily surrendered a license may apply for a new license.

(e) Any fees paid on the license will not be refunded upon surrender.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 9, 2024.

TRD-202403657

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

SUBCHAPTER E. EXAMINATIONS

16 TAC §§60.50 - 60.54

STATUTORY AUTHORITY

§60.50.Examination Rescheduling.

§60.51.Examination Fee Refund.

§60.52.Examination Security.

§60.53.Access to Examinations.

§60.54.Examination Results.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 9, 2024.

TRD-202403659

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

16 TAC §§60.50 - 60.56

STATUTORY AUTHORITY

§60.50.Examination Providers.

(a) The department may delegate its statutory authority and responsibilities regarding examinations via contract to a third-party examination provider (department's examination provider). The department's examination provider, who is contracted to act on behalf of the department, must comply with all statutes and rules applicable to the department and to state agencies regarding examinations.

(b) The department's examination provider may administer an examination for those license types that require a person to pass an examination in order to obtain a license. The statutes and rules for a specific program determine what examination, if any, is required.

(c) The department's examination provider is the point of contact regarding examination matters, including examination scheduling, rescheduling, refunds, accommodations, and results, as prescribed by the rules in this subchapter and the statutes and rules for a specific program.

(d) The provisions in this subchapter apply to all programs regulated by the department, except in the event of a conflict with the statute and rules of a specific program.

§60.51.Examination Scheduling and Rescheduling.

(a) Scheduling an Examination.

(1) Unless provided otherwise in the statute and rules of a specific program, a person who is eligible to take an examination (examination candidate) must schedule the examination with the department's examination provider.

(2) The examination may be scheduled subject to the availability of examination appointments.

(3) The department will provide information about the examination for a particular license type and the contact information for the department's examination provider on the department's website.

(b) Canceling and Rescheduling an Examination.

(1) Unless provided otherwise in the statutes and rules of a specific program, an examination candidate must notify the department's examination provider to cancel and reschedule an examination.

(2) Subject to this subsection, an examination candidate may cancel and reschedule an examination for any reason. The department's examination provider is not required to review or approve the reason for canceling and rescheduling an examination.

(3) An examination candidate may cancel and reschedule an examination at no charge if the examination candidate:

(A) notifies the department's examination provider at least two days prior to the date of the examination or in accordance with the timeframes and methods of notification prescribed by the department's examination provider; or

(B) provides the department's examination provider, as soon as possible, with acceptable documentation of the examination candidate's inability to take the examination because of an "emergency" as defined under §60.10.

(4) The examination may be rescheduled subject to the availability of examination appointments.

§60.52.Examination Fees and Refunds.

(a) Examination Fees.

(1) An examination candidate must pay the examination fee to the department's examination provider, unless provided otherwise in the statute and rules of a specific program.

(2) The department will provide information about the examination for a particular license type and the contact information for the department's examination provider on the department's website.

(b) Examination Fee Refunds.

(1) An examination candidate, who is unable to take the examination and who wants to obtain a refund of the examination fee, must:

(A) notify the department's examination provider in writing not less than 10 days before the date of the examination ("reasonable notice") or in accordance with the timeframes and methods of notification prescribed by the department's examination provider; or

(B) provide the department's examination provider, as soon as possible, with acceptable documentation of the examination candidate's inability to take the examination because of an "emergency" as defined under §60.10.

(2) The department's examination provider, on behalf of the department, will determine whether to issue a refund of the examination fee.

§60.53.Examination Accommodations.

(a) The department's examination provider will provide reasonable accommodations for an examination administered to an examination candidate with a disability as required by the Americans with Disabilities Act of 1990 (ADA), 42 U.S.C. Section 12101 et seq., its implementing regulations, and any subsequent amendments to the law and regulations.

(b) When requesting reasonable accommodations for an examination under this section, the examination candidate must comply with the following procedures:

(1) The examination candidate must submit a written request for accommodation and documentation regarding the examination candidate's disability and the specific accommodations requested.

(2) The written request and documentation under paragraph (1) must be submitted to the department's examination provider before scheduling the examination and must be submitted in the form and manner prescribed by the department's examination provider.

(3) The department's examination provider, on behalf of the department, will determine whether to grant the requested accommodation.

(c) Upon written request to the department's examination provider, examinations may be offered in a foreign language at the expense of the requestor. The request must be submitted before scheduling the examination.

§60.54.Examination Security.

(a) An examination candidate must comply with all examination security requirements for examinations administered by the department's examination provider or by any third-party provider of an examination that is required to obtain a license issued by the department.

(b) An examination candidate may only use the specified methods of assistance that are available and authorized for all persons taking the examination, except as authorized under §60.53.

(1) obtaining or attempting to obtain examination questions or answers from any person or source and for any use or purpose;

(2) providing or attempting to provide examination questions or answers to any person or source and for any use or purpose;

(3) presenting a falsified or fraudulent document to gain entry to an examination;

(4) taking an examination for another person;

(5) knowingly allowing another person to take an examination for the examination candidate;

(6) using or providing unauthorized assistance in connection with an examination;

(7) while taking an examination, using any materials not authorized by the department or testing service for use in the examination, including but not limited to notes or study aides;

(8) bringing to the examination site or leaving the examination site with examination questions or answers obtained from the current examination or from previous examinations;

(9) while taking an examination, communicating with any person, other than an authorized representative of the department or examination provider, about the examination;

(10) for open book examinations, bringing any materials into the examination, including handwritten notes in approved reference materials, other than those materials approved by the department or examination provider;

(11) any conduct or activities that violate the instructions or the examination procedures set out in the candidate information bulletin;

(12) any conduct that violates the instructions provided by the examination provider or administrator;

(13) for virtual examinations, any violations of the examination security requirements related to virtual practical examinations or remotely proctored written examinations;

(14) any conduct that violates the examination security provisions prescribed in the contract between the department and the department's examination provider; or

(15) any other conduct that violates examination security.

(d) The contents of any examination that is required for the issuance of a department license are confidential.

(e) An examination candidate who is seen violating the examination security provisions during the examination will not be allowed to complete the examination and will be removed from the examination site.

(f) An examination candidate who is found to have violated this section is subject to any and all of the following consequences:

(1) having the examination results invalidated;

(2) having to retake the examination and pay a new examination fee;

(3) being determined ineligible or not being allowed to retake the examination; or

(4) having administrative penalties and sanctions imposed and other enforcement actions taken.

§60.55.Examination Results.

(a) Not later than the 30th day after the date a person (former examination candidate) takes an examination, the department's examination provider will notify the person of the results of the examination.

(b) If notice of the examination results will be delayed for longer than 90 days after the examination date, the department's examination provider will notify the person of the reason for the delay before the 90th day.

(c) Following the examination, a person will receive an analysis of the person's performance on the examination from the examination provider.

(d) A person must not present falsified or fraudulent documents concerning the person's results from an examination.

§60.56.Validity and Acceptance of Examination Results; Reexamination.

(a) This section addresses the validity and acceptance of licensing examination results and whether a person must retake a licensing examination. This section applies to all examinations provided or administered by the department's examination provider or by another third-party examination provider who is not contracted with the department.

(b) Examination Results for New License Applicants With No Previous License.

(1) This subsection applies to a person who is applying for a new license issued by the department and who has not previously held that license.

(2) Examination results are valid for the length of the license term of the license being sought plus three years from the date of the examination.

(A) If the person is applying for a license with a one-year license term, then the examination results are valid for four years from the date of the examination.

(B) If the person is applying for a license with a two-year license term, then the examination results are valid for five years from the date of the examination.

(3) After the time periods specified in paragraph (2) expire, the person must retake any examinations required to apply for a new license. Any previous licensing examination results will not be accepted.

(1) This subsection applies to a person who previously held a license issued by the department and who is applying for a new license. Each paragraph addresses a separate situation involving a previous license holder.

(2) Expired License Beyond Late Renewal Deadlines. Pursuant to Texas Occupations Code §51.401(d), a person whose license has expired beyond the late renewal deadlines prescribed under §51.401 may obtain a new license by complying with the requirements and procedures, including the examination requirements, for obtaining an original license. The person must retake any examinations required to apply for a new license. Any previous licensing examination results will not be accepted.

(3) Previously Licensed in Texas and Currently Licensed in Another State. Pursuant to Texas Occupations Code §51.401(e), a person who was previously licensed in Texas, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of application may obtain a new Texas license without reexamination.

(4) Revoked License.

(A) Except as provided under paragraph (B), a person whose license has been revoked must retake any examinations required to apply for a new license. Any previous licensing examination results will not be accepted.

(B) Pursuant to Texas Occupations Code §51.355 and rule §60.36, a person who reapplies for licensure after having a license revoked solely for failure to pay an administrative penalty or failure to pay an insufficient funds fee will not be required to retake any examinations required to apply for a new license. This provision does not apply where the person's license has been in a revoked status for three years or more at the time of the new application.

(5) Voluntarily Surrendered License. A person who was previously licensed in Texas and who voluntarily surrendered the license under §60.37 may obtain a new license by complying with the requirements and procedures, including the examination requirements, for obtaining an original license. The person must retake any examinations required to apply for a new license. Any previous licensing examination results will not be accepted.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 9, 2024.

TRD-202403658

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

CHAPTER 96. ELECTRIC VEHICLE SUPPLY EQUIPMENT

The Texas Department of Licensing and Regulation (Department) proposes new rules at 16 Texas Administrative Code (TAC), Chapter 96, regarding the new Electric Vehicle Charging Stations (EVS) program. These proposed changes are referred to as the "proposed rules."

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 96, implement Senate Bills (SB) 1001 and 1732, 88th Legislature, Regular Session (2023), and Texas Occupations Code, Chapter 2311, Electric Vehicle Charging Stations, and Electric Vehicle Supply Equipment (EVSE).

The proposed rules are necessary to introduce the Department's administrative rulemaking effort for the implementation of SB 1001 and 1732, and Texas Occupations Code, Chapter 2311 for the EVS program, which address rules relating to: (1) electric vehicle supply equipment definitions; (2) registration and EVSE provider statutory and rule compliance deadlines; (3) EVSE registration and renewal requirements; (4) investigation and inspection of EVSE; (5) EVSE provider duties and responsibilities; (6) program fees; (7) enforcement provisions; (8) general technical requirements for EVSE providers from supplemental rules and regulation publications; and (9) implementing the recommendations of the EVSE Stakeholder Workgroup (Workgroup), as authorized by SB 1001, Article 3, and public comment received by the Department from the "First Look" posting of a working draft version of the EVS proposed rules.

The Workgroup held two public meetings to discuss the statutory elements of SB 1001 and 1732 to address the new rule chapter. The proposed rules reflect their input and recommendations.

SECTION-BY-SECTION SUMMARY

Subchapter A. General Provisions

The proposed rules create new §96.1, Authority, to identify the statutory provisions under which the rule chapter derives its regulatory jurisdiction.

The proposed rules create new §96.10, Definitions, to establish the definitions to be used in the rule chapter.

The proposed rules create new §96.14, Effective Dates for Electric Vehicle Supply Equipment Compliance, to provide notice to EVSE providers of the deadlines for registration and operational standards for regulated electric vehicle charging units.

Subchapter B. Electric Vehicle Supply Equipment Registration

The proposed rules create new §96.20, Electric Vehicle Supply Equipment Registration Required, to require an EVSE provider to register each charging unit prior to making it available for commercial service to electric vehicle owners.

The proposed rules create new §96.21, Electric Vehicle Supply Equipment Registration Requirements, to: (1) identify the prerequisites for initial charging unit registration; (2) set the length of the registration term at one year; and (3) set forth the required procedures related to changes in provider ownership.

The proposed rules create new §96.22, Electric Vehicle Supply Equipment Registration Renewal Requirements, to detail the annual registration renewal procedures for electric vehicle charging units.

The proposed rules create new §96.23, Electric Vehicle Supply Equipment Registration Changes, to establish the registration procedures by which an EVSE provider may add to or reduce the number of charging units at an existing location.

The proposed rules create new §96.24, Certificate of Registration, to establish how an EVSE provider may provide a copy of the issued registration certificate to a member of the public upon request.

The proposed rules create new §96.30, Exemptions, which illustrate exceptions under which electric vehicle supply equipment will not be regulated by the Department.

Subchapter C. Inspections and Investigations

The proposed rules create new §96.60, EVSE Inspections and Investigations, to state the Department's authority to carry out inspections and investigations of EVSE providers and equipment.

Subchapter D. Responsibilities of the Provider

The proposed rules create new §96.70, Notification of Department Jurisdiction and Complaint Information, to require the EVSE provider to display a notice to consumers on its charging units that instruct consumers on how to file complaints about their vehicle charging experience with the Department.

The proposed rules create new §96.71, Consumer Information Sticker, to require EVSE providers to affix an adhesive notice on each registered electric vehicle charging unit that contains the specific information required in §96.70.

The proposed rules create new §96.72, Damaged or Recalled Electric Vehicle Supply Equipment, to instruct EVSE providers on how to address onsite nonfunctional electric vehicle charging units and publish status warnings to consumers.

The proposed rules create new §96.74, Recordkeeping Requirements, to require EVSE providers to maintain and make available specific types of electric vehicle supply equipment records to Department personnel upon request for three years.

Subchapter E. Fees

The proposed rules create new §96.80, EVSE Registration Fees, to establish the fees for the issuance and renewal of EVSE charging unit registration and consumer information stickers.

The proposed rules create new §96.83, Fee Policy and Disclosures, to establish the required information to be disclosed to consumers regarding the determination of fees and surcharges associated with an electric vehicle charging transaction.

Subchapter F. Enforcement Provisions

The proposed rules create new §96.90, Administrative Penalties and Sanctions, to establish the authority of the Commission and the executive director of the Department to impose administrative penalties and sanctions against an individual or entity who violates a statute or rule applicable to the EVS program.

The proposed rules create new §96.91, Enforcement Authority, to establish the authority of the Commission and the Department to enforce the statutes and rules applicable to the EVS program.

Subchapter G. General Technical Requirements

The proposed rules create new §96.100, Adoption by Reference, to adopt selected publications and regulations into the rule chapter to supplement the administration and enforcement of the EVS program.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

The proposed rules establish the core program requirements to implement the new legislation for Electric Vehicle Supply Equipment created by SB 1001 and SB 1732, 88th Legislature, Regular Session (2023), specifically: (1) registration requirements and timeline; (2) a registration fee of $30 per charging connector; (3) a renewal fee of $25; and (4) a consumer information sticker purchase fee of $1. The proposed rules also adopt standards for customer notification of charges and a transaction receipt, technical requirements for EV charging stations, and recordkeeping requirements.

Tony Couvillon, Policy Research and Budget Analyst, using information developed for the SB 1001 fiscal note during the legislative session, has determined that for each year of the first five years the proposed rules are in effect, the additional estimated costs to the State would be $352,440 in the first fiscal year, $300,569 in the second fiscal year, $300,569 in the third fiscal year, $327,374 in the fourth fiscal year, and $327,374 in the fifth fiscal year. These costs will come from the addition of five employees at TDLR, and the corresponding equipment and supplies for those employees, as well as the cost for updating one of the agency's license systems with this new program.

Mr. Couvillon, using information developed for the SB 1001 fiscal note during the legislative session, has determined that for each year of the first five years the proposed rules are in effect, there will be an increase in estimated revenue to the State in the amount of $354,900 in the first fiscal year, $303,100 in the second fiscal year, $311,590 in the third fiscal year, $319,925 in the fourth fiscal year, and $327,400 in the fifth fiscal year.

Mr. Couvillion has determined that for each year of the first five years the proposed rules are in effect, there will be no estimated reductions in costs or loss in revenue to the State, since the proposed rules establish a new regulation which comes with costs to implement and administer the regulation, and they do not eliminate or decrease any fees assessed by the program, respectively.

LOCAL EMPLOYMENT IMPACT STATEMENT

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 will benefit from established safety standards for EV charger installations and maintenance. These standards will create a regulatory environment that promotes the safe charging of electric vehicles by consumers, ensures that a charging unit delivers the correct amount of charge and at the posted price, and allows consumers to submit complaints to the Department for EV charging station issues.

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 will be additional costs to persons who are required to comply with the proposed rules. Each EVSE provider must pay a registration fee of $30 per EV charging station plug/connector, $1 for the consumer information sticker purchase for EV charger stations, and a renewal fee of $25 per plug/connector. The fees, while minimal, are new to this regulated industry where before there were no registration requirements with the state, and the fees will result in a cost to registrants. These fees are required by law in Section 2311.0202 of the Texas Occupations Code.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT

The proposed rules have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government; however, the proposed rules fall under the exception for rules that are necessary to protect the health, safety, and welfare of the residents of this state, and are necessary to implement legislation, under Texas Government Code §2001.045(c)(6) and (c)(9), respectively. Therefore, the agency is not required to take any further action under Texas Government Code §2001.0045.

GOVERNMENT GROWTH IMPACT STATEMENT

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 require an increase or decrease in fees paid to the agency.

The proposed rules increase the fees paid to the agency by establishing a fee for an initial registration, a fee for a registration renewal, and a fee for the consumer information sticker purchase.

5. The proposed rules create a new regulation.

The proposed rules create a new regulation by creating the EVS program and its regulatory environment at TDLR, based on newly implemented legislation (SB1001 and SB 1732).

6. The proposed rules do not expand, limit, or repeal an existing regulation.

7. The proposed rules increase or decrease the number of individuals subject to the rules' applicability.

The proposed rules increase the number of individuals subject to the rule's applicability by requiring all electric vehicle supply providers to register all charging units with TDLR, unless exempted.

8. The proposed rules do not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

PUBLIC COMMENTS

Comments on the proposed rules may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/gcerules ; by facsimile to (512) 475-3032; or by mail to Shamica Mason, 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 A. GENERAL PROVISIONS

16 TAC §§96.1, 96.10, 96.14

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51, 1305 and 2311, 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 proposed rules are those set forth in Texas Occupations Code, Chapters 51, 1305 and 2311. 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 Bills 1001 and 1732, 88th Legislature, Regular Session (2023).

§96.1.Authority.

This chapter is promulgated under Texas Occupations Code, Chapters 51, 1305, and 2311.

§96.10.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Charging unit - an electric vehicle supply equipment device that directly delivers electrical energy to an electric vehicle through one or more charging connectors or plugs to the charging port of an electric vehicle.

(2) Code - Texas Occupations Code, Chapter 2311, Electric Vehicle Supply Equipment, as added by Senate Bill 1001, 88th Legislature, Regular Session (2023), and Electric Vehicle Charging Stations, as added by Senate Bill 1732, 88th Legislature, Regular Session (2023).

(3) Commission - The Texas Commission of Licensing and Regulation.

(4) Department - The Texas Department of Licensing and Regulation.

(5) Digital network - an online-enabled application, website, or system offered or used by an electric vehicle supply provider that allows a user to initiate a commercial transaction to dispense electrical energy from electric vehicle supply equipment to an electric vehicle.

(6) Electric vehicle supply equipment (EVSE) - a device or equipment used to dispense electrical energy to an electric vehicle.

(7) Electric vehicle supply provider (provider) - an owner or operator of electric vehicle supply equipment that is available and accessible to the public to provide electrical energy through a commercial transaction.

(8) Legacy charger - an electric vehicle supply device defined in §2311.0207 of the Code.

(9) NIST - The National Institute of Standards and Technology, a non-regulatory federal agency under the United States Department of Commerce which certifies and provides standard reference materials used to perform instrument calibrations, verifies the accuracy of specific measurements, and supports the development of new measurement methods.

(10) Texas Electrical Safety and Licensing Act - Texas Occupations Code, Chapter 1305.

§96.14.Effective Dates for Electric Vehicle Supply Equipment Compliance.

(a) Unless exempted by Code or this chapter, an electric vehicle supply provider must register all electric vehicle supply equipment charging units in operation in this state with the department by March 1, 2025.

(b) Except as provided in subsection (c), a charging unit installed in this state must be operated in compliance with manufacturer specifications, the Code, and this chapter:

(1) not later than March 1, 2028, if the charging unit is installed before June 18, 2023, or is a legacy charger;

(2) not later than March 1, 2025, if the charging unit is installed on or after June 18, 2023, and before March 1, 2025; or

(3) when the charging unit begins operating if the charging unit is installed on or after March 1, 2025.

(c) Unless exempted by the Code or this chapter, any public charging unit installed after December 1, 2024, for commercial use, and funded by a public grant or rebate program must be equipped with a charging connector or plug type that is widely compatible with as many types of electric vehicles as practicable. Providers are not required to comply with this subsection until January 1, 2030.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 12, 2024.

TRD-202403683

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

SUBCHAPTER B. ELECTRIC VEHICLE SUPPLY EQUIPMENT REGISTRATION

16 TAC §§96.20 - 96.24, 96.30

STATUTORY AUTHORITY

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bills 1001 and 1732, 88th Legislature, Regular Session (2023).

§96.20.Electric Vehicle Supply Equipment - Registration Required.

Unless exempted by the Code or this chapter, an electric vehicle supply provider must register each charging unit with the department before making it available for use on a digital network for a commercial transaction.

§96.21.Electric Vehicle Supply Equipment Registration Requirements.

(a) To register a charging unit of electric vehicle supply equipment at a new location, an electric vehicle supply equipment provider must submit:

(1) an application completed in a manner prescribed by the department;

(2) a statement, affirmed by the provider that a licensed electrical contractor installed the charging unit, that the installation was performed in conformance with manufacturer specifications, and that the charging unit was in proper working order at the time of installation; and

(3) the fee required under §96.80 of this chapter (relating to EVSE Registration Fees).

(b) A certificate of registration is valid for one year from the date of issuance and must be renewed prior to its expiration.

(c) If a change in provider ownership takes place, the new provider must submit a new application for registration within 30 days of the change.

(d) A provider must report a change to its name, contact information, federal identification number, or social security number to the department within 30 days of the change. A change in the provider's federal identification number or social security number constitutes a change of business identity and requires a new registration application under this section.

§96.22.Electric Vehicle Supply Equipment Registration Renewal Requirements.

(a) To renew registration of a charging unit of electric vehicle supply equipment, an electric vehicle supply provider must submit:

(1) a completed renewal application in a manner prescribed by the department; and

(2) the fee required under §96.80 of this chapter.

(b) A provider is responsible for renewing electric vehicle supply equipment registration before the expiration date. Lack of receipt of a renewal notice from the department shall not excuse failure to file for renewal or late renewal.

(c) If a provider adds additional charging units to a location after its previous registration but less than 90 days prior to that renewal, the provider will not be charged an additional fee for the newly installed charging units.

(d) A provider must include an accurate count of all active charging units with its submission of the renewal application and required fee to the department.

§96.23.Electric Vehicle Supply Equipment Registration Changes.

(a) If the number of registered charging units increases at an existing location, prior to operation of the added devices, the electric vehicle supply provider must submit:

(1) notice in a manner required by the department;

(3) the fee required under §96.80 of this chapter.

(b) If a provider removes or retires a charging unit or units at a location, the provider must provide notice in a manner prescribed by the department.

§96.24.Certificate of Registration.

A registrant must make available a copy of the current certificate of registration to a member of the public upon request. The registrant may refer the requestor to an electronic link to its digital network for a copy of the certificate of registration, or provide a copy of the certificate to the requestor's email address or physical address, if the requestor has no electronic mail.

§96.30.Exemptions.

This chapter does not apply to electric vehicle supply equipment that is:

(1) installed in or adjacent to a private residence for noncommercial use;

(2) provided for the exclusive use of an individual, or a group of individuals, including employees, tenants, visitors, or residents of a multiunit housing or office development; or

(3) provided by a business for use at no charge.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 12, 2024.

TRD-202403684

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

SUBCHAPTER C. INSPECTIONS AND INVESTIGATIONS

16 TAC §96.60

STATUTORY AUTHORITY

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bills 1001 and 1732, 88th Legislature, Regular Session (2023).

§96.60.EVSE Inspections and Investigations.

The department, or its authorized representative, shall be permitted to inspect and test all non-exempt EVSE operating at any location in Texas in accordance with the Code, Texas Occupations Code, Chapter 51, the inspection, and investigation rules under 16 Texas Administrative Code, Chapter 60, Subchapter H, this chapter, and all applicable state and federal laws and regulations.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 12, 2024.

TRD-202403685

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

SUBCHAPTER D. RESPONSIBILITIES OF THE PROVIDER

16 TAC §§96.70 - 96.72, 96.74

STATUTORY AUTHORITY

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bills 1001 and 1732, 88th Legislature, Regular Session (2023).

§96.70.Notification of Department Jurisdiction and Complaint Information.

(a) The electric vehicle supply provider must show a notice on the charging unit display or its digital network that the Texas Department of Licensing and Regulation regulates electric vehicle supply equipment.

(b) Consumers and providers must be notified by the provider of the name, e-mail address, website address, mailing address, and telephone number of the department for the purpose of directing complaints to the department regarding the Electric Vehicle Charging Program. The notification must also appear on the following:

(1) each electric vehicle supply equipment charging unit post-charging session receipt;

(2) the charging unit's visual display or the provider's digital network; and

(3) an information sticker affixed on the front of each charging unit owned or operated by a provider at the physical location of the charging unit that is regulated under this chapter.

(c) The notice described in subsection (b) must contain the following language: Unresolved complaints may be forwarded to the Texas Department of Licensing and Regulation, Electric Vehicle Charging Program, P.O. Box 12157, Austin, Texas 78711, or by telephone (512) 463-6599 or (800) 803-9202, TDD (800) 735-2989, or https://www.tdlr.texas.gov/complaints.

§96.71.Consumer Information Sticker.

(a) An electric vehicle supply provider must obtain a consumer information sticker containing the department's contact information shown in §96.70(c) of this subchapter (relating to Notification of Department Jurisdiction and Complaint Information) and place the sticker on the front of each charging unit operating at the provider's registered location.

(b) A consumer information sticker must not be placed in a manner that affects the accuracy, readability, or lawful operation of a device.

(c) If any part of the information on the sticker affixed to the charging unit is no longer fully legible and in plain sight of the consumer, the provider must replace the sticker within 30 days after the date the provider discovered the condition.

§96.72.Damaged or Recalled Electric Vehicle Supply Equipment.

Any damaged or recalled charging unit that poses a safety risk to the public must be removed from service by the electric vehicle supply provider in a manner:

(1) that prevents the use of the damaged or recalled charging unit by the public; and

(2) removes the damaged or recalled charging unit from the provider's digital network listing of available charging units.

§96.74.Recordkeeping Requirements.

(a) Each electric vehicle supply provider that owns or operates electrical vehicle supply equipment available and accessible to the public for electric vehicle commercial charging transactions must maintain and preserve all documents related to the installation, maintenance, inspection, and calibration of electric vehicle supply equipment for a period of three (3) years.

(b) All records applicable to this section must be provided to or made available for inspection or investigation to the department upon request in accordance with §96.60 of this chapter (relating to EVSE Inspections and Investigations).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 12, 2024.

TRD-202403686

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

SUBCHAPTER E. FEES

16 TAC §96.80, §96.83

STATUTORY AUTHORITY

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bills 1001 and 1732, 88th Legislature, Regular Session (2023).

§96.80.EVSE Registration Fees.

(a) Initial Registration for Newly Registered Charging Units and Additional Units - $30 per charging connector/plug

(b) Renewal of Registration - $25 per charging connector/plug

(d) A duplicate/replacement fee for any registration issued under this chapter is $25.

(e) All fees paid to the department are non-refundable.

(f) Late renewal fees for registration issued under this chapter are provided under 16 TAC §60.83 (relating to Late Renewal Fees).

(g) A dishonored/returned check or payment fee is the fee prescribed under 16 TAC §60.82 (relating to Dishonored Payment Device)

§96.83.Fee Policy and Disclosures.

(a) Disclosure Requirements. An electric vehicle supply provider must disclose the following on the EVSE display or on the provider's digital network:

(1) the fee calculation method or methods; and

(2) all applicable surcharges.

(b) Prior to charging, the provider must disclose the following to the user:

(1) the rate the user will be charged at the time of the transaction based on the available fee calculation method or methods; and

(2) a list of applicable surcharges.

(1) states that the department regulates electric vehicle supply equipment; and

(2) provides information on filing a complaint with the department about the electric vehicle supply equipment as described in §96.70.

(d) Receipts. Upon completion of the commercial transaction for electric vehicle charging, the provider must transmit a summary of the transaction to the user that includes the requirements of §2311.0305 of the Code, §96.24 and §96.70 of this chapter and the EVSE Recorded Representations requirements contained in the most recent version of NIST Handbook 44.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 12, 2024.

TRD-202403687

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

SUBCHAPTER F. ENFORCEMENT PROVISIONS

16 TAC §96.90, §96.91

STATUTORY AUTHORITY

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bills 1001 and 1732, 88th Legislature, Regular Session (2023).

§96.90.Administrative Penalties and Sanctions.

If a person or entity violates any provision of the Code, this chapter, or any rule or order of the executive director or commission, proceedings may be instituted to impose administrative penalties, administrative sanctions, or both in accordance with the provisions of the Code, and any associated rules.

§96.91.Enforcement Authority.

The enforcement authority granted under the Code, and Texas Occupations Code, Chapter 51 and any associated rules may be used to enforce the Code and this chapter.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 12, 2024.

TRD-202403688

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

SUBCHAPTER G. GENERAL TECHNICAL REQUIREMENTS

16 TAC §96.100

STATUTORY AUTHORITY

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bills 1001 and 1732, 88th Legislature, Regular Session (2023).

§96.100.Adoption by Reference.

In accordance with the Code, the department adopts the requirements of the most recent version of the following publications and rules for the purpose of administering and enforcing this chapter:

(1) NIST Handbook 44, "Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices."

(2) NIST Handbook 130, "Uniform Laws and Regulations in the Areas of Legal Metrology and Fuel Quality."

(3) Chapter 6, Special Equipment, Article 625: Electric Vehicle Power Transfer System, National Electric Code.

(4) 16 Texas Administration Code, Chapter 68, Subchapter I; Texas Government Code, Chapter 469; Texas Accessibility Standards (eff 3.15.12).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 12, 2024.

TRD-202403689

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 22, 2024

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

PART 9. TEXAS LOTTERY COMMISSION

CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT

SUBCHAPTER D. LOTTERY GAME RULES

The Texas Lottery Commission (Commission) proposes the repeal of existing 16 TAC §401.315 ("Mega Millions" Draw Game Rule) and the proposal of new 16 TAC §401.315 ("Mega Millions" Draw Game Rule). The purpose of the proposed repeal and new rule is to conform the play of the Mega Millions game in Texas to game changes recently adopted by the Mega Millions Lotteries and the Multi-State Lottery Association (MUSL). These changes include (1) increasing the purchase price of a ticket from $2 to $5; (2) changing the game matrix from 5/70 plus 1/25 (selection of five numbers from a field of 70 numbers and then one number from a field of 25 numbers) to 5/70 plus 1/24 (selection of five numbers from a field of 70 numbers and then selection of one number from a field of 24 numbers); (3) removing Megaplier® and Just the Jackpot® features; (4) changing the play of the game to include a Multiplier automatically generated by the Lottery Gaming System (as defined in the new rule) as part of the cost of a Play, which will multiply the non-jackpot prizes by 2, 3, 4, 5 or 10 times; (5) revising certain game definitions and references; (6) updating grammar and/or sentence structure changes to provide clarity, including renaming the top prize as the Jackpot Prize instead of Grand Prize; and (7) adding that the Mega Millions Lotteries are removing the graduated percentage escalator for the thirty annual payment schedule. Mega Millions Lotteries will take responsibility for the schedule of prize payments for a thirty annual graduated payment schedule. The new Mega Millions game changes are expected to be implemented on April 5, 2025, with the first drawing expected to be on April 8, 2025. Accordingly, the current Mega Millions rule will remain in effect until the date the new rule is implemented, which currently is expected to be April 5, 2025.

The Commission is a member of MUSL and is authorized to conduct the Mega Millions game in Texas under the conditions of the Cross-Sell Agreement between MUSL and the Mega Millions Lotteries, MUSL rules, the laws of the State of Texas, this rule (16 TAC §401.315), and under such further instructions, directives, and procedures as the Commission executive director may issue in furtherance thereof. To be clear, the authority to participate in the Mega Millions game is provided to the Commission by MUSL through the Cross-Sell Agreement and the conduct and play of the Mega Millions game in Texas must conform to the MUSL Product Group's Mega Millions game rules.

Robert Tirloni, Lottery Operations Director, has determined that for each year of the first five years the proposed repeal and new rule will be in effect, the public benefit expected is providing Texas Lottery players notice of the changes to the Mega Millions game and to update the Texas Lottery Mega Millions draw game rule in conformance with MUSL rules. Further, the game changes are anticipated to generate increased interest by offering players the potential for larger jackpots, improved chances of winning through improved overall odds, improved chances of winning the Jackpot Prize through improved Jackpot Prize odds and a new embedded multiplier feature that offers players the chance to increase non-jackpot prizes up to ten times potentially resulting in increased ticket sales and revenue to the Foundation School Fund.

Sergio Rey, Controller, has determined that for each year of the first five years the proposed repeal and new rule will be in effect, there will be no significant fiscal impact for state or local governments as a result of the proposed repeal and new rule. There will be no adverse effect on small businesses or rural communities, micro businesses, or local or state employment. There will be no additional economic cost to persons required to comply with the proposed repeal and new rule, as proposed. Furthermore, an Economic Impact Statement and Regulatory Flexibility Analysis is not required because the proposed repeal and new rule will not have an adverse economic effect on small businesses or rural communities as defined in Texas Government Code §2006.001(1-a) and (2).

Pursuant to Texas Government Code §2001.0221, the Commission provides the following Government Growth Impact Statement for the proposed repeal and new rule. For each year of the first five years the proposed repeal and new rule will be in effect, Sergio Rey, Controller, has determined the following:

(1) The proposed repeal and new rule do not create or eliminate a government program.

(2) Implementation of the proposed repeal and new rule do not require the creation of new employee positions or the elimination of existing employee positions.

(3) Implementation of the proposed repeal and new rule do not require an increase or decrease in future legislative appropriations to the Commission.

(4) The proposed repeal and new rule do not require an increase or decrease in fees paid to the Commission.

(5) The proposed repeal and new rule do not create a new regulation.

(6) The proposed repeal and new rule do not expand or limit an existing regulation.

(7) The proposed repeal and new rule do not increase or decrease the number of individuals subject to the rule's applicability.

(8) The proposed repeal and new rule do not positively or adversely affect this state's economy.

The Commission requests comments on the proposed repeal and new rule from any interested person. Comments on the proposed repeal and new rule may be submitted to Deanne Rienstra, Special Counsel, by mail at Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email at legal.input@lottery.state.tx.us . Comments must be received within 30 days after publication of this proposal in the Texas Register to be considered.

16 TAC §401.315

The repeal is proposed under Texas Government Code §466.015(c), which authorizes the Commission to adopt rules governing the operation of the lottery, and §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

The repeal is intended to implement Texas Government Code Chapter 466.

§401.315."Mega Millions" Draw Game Rule.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 9, 2024.

TRD-202403670

Bob Biard

General Counsel

Texas Lottery Commission

Earliest possible date of adoption: September 22, 2024

For further information, please call: (512) 344-5324

16 TAC §401.315

The new rule is proposed under Texas Government Code §466.015(c), which authorizes the Commission to adopt rules governing the operation of the lottery, and §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

The new rule is intended to implement Texas Government Code Chapter 466.

§401.315."Mega Millions" Draw Game Rule.

(a) Mega Millions®. The Multi-State Lottery Association (MUSL) has entered into an Agreement (Cross-Sell Agreement) with those U.S. lotteries operating under an agreement to sell a draw game known as Mega Millions (Mega Millions Lotteries) to permit the MUSL Party Lotteries who are members of the MUSL Mega Millions (M2G2) Product Group ("Product Group"), including the Texas Lottery Commission (commission), to sell the Mega Millions lottery game. The purpose of the Mega Millions game is the generation of revenue for Mega Millions Lotteries and Product Group members participating under the Cross-Sell Agreement, through the operation of a specially designed multi-jurisdiction lottery game that will award prizes to Ticket holders matching specified combinations of numbers randomly selected in regularly scheduled drawings. The Mega Millions game is authorized to be conducted by the commission executive director (executive director) under the conditions of the Cross-Sell Agreement, MUSL rules, the laws of the State of Texas, this section, and under such further instructions, directives, and procedures as the executive director may issue in furtherance thereof. In this regard, the executive director is authorized to issue such further instructions and directives as may be necessary to conform the conduct and play of the Mega Millions game to the requirements of the MUSL rules and the Cross-Sell Agreement, if, in the opinion of the executive director, such instructions, directives, and procedures are in conformance with state law. To be clear, the authority to participate in the Mega Millions game is provided to the commission by MUSL through the Cross-Sell Agreement. The conduct and play of the Mega Millions game in Texas must conform to the MUSL Mega Millions (M2G2) Product Group Rules ("MUSL MM Rules"). Further, if a conflict arises between this section and §401.304 of this subchapter (relating to Draw Game Rules (General)), this section shall have precedence. In addition to other applicable rules contained in Chapter 401, this section and definitions herein apply unless the context requires a different meaning or is otherwise inconsistent with the intent of the MUSL MM Rules adopted by the Product Group.

(b) Definitions. In addition to the definitions provided in §401.301 of this subchapter (relating to General Definitions), and unless the context in this section otherwise requires, the following definitions apply.

(1) "Agent", "Sales Agent" or "Retailer" means a person licensed under the State Lottery Act to sell Texas Lottery Tickets, which include Mega Millions game Plays.

(2) "Drawing" refers collectively to the formal draw event for randomly selecting the winning numbers that determine the number of winning Plays for each prize level of the Mega Millions game. Drawings will be held at the times and places established by the Mega Millions Lotteries.

(3) "Game Ticket" or "Ticket" means an acceptable evidence of Play, as defined in §401.301 (relating to General Definitions) "Draw game ticket", produced in a manner that meets the specifications defined in the MUSL MM Rules, and is a physical representation of the Play or Plays sold to the player as described in subsection (h) of this section (Ticket Validation).

(4) "Mega Millions Lotteries" refers to those lotteries that have reached a Cross-Sell Agreement with MUSL for the selling of the Mega Millions game. The Mega Millions Lotteries will determine the Mega Millions Advertised Jackpot Prize amount (cash value option and annuity).

(5) "Mega Millions Plays" (MM Plays) shall refer to Plays purchased for the Mega Millions game.

(6) "Multiplier" means a unique number that is automatically selected by the Lottery Gaming System according to the frequency set forth in subsection (f) of this section, for each Mega Millions Play.

(7) "MUSL" means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the MUSL Party Lotteries.

(8) "MUSL Board" means the governing body of the MUSL, which is comprised of the chief executive officer of each Party Lottery.

(9) "Party Lottery" means a state lottery or lottery of a political subdivision or entity that has joined MUSL and, in the context of the Product Group rules, has joined in selling the games offered by the Product Group. "Selling Lottery" or "Participating Lottery" shall mean a state lottery or lottery of a political subdivision or entity that is participating in selling the Mega Millions game and that may be a member of either the Product Group or the Mega Million Lotteries.

(10) "Play" means a set of six (6) numbers, the first five (5) from a field of seventy (70) numbers and the last one (1) from a field of twenty-four (24) numbers, that appear on a Ticket and are to be played by a player in the game. As used in this section, unless otherwise indicated, "Play" means a Mega Millions Play ("MM Play").

(11) "Prize" means an amount paid to a person or entity holding a winning Ticket. The term "Jackpot Prize shall refer to the top prize in the Mega Millions game. "Advertised Jackpot Prize" shall mean the estimated annuitized Jackpot Prize amount as determined by the Mega Millions Lotteries. The Advertised Jackpot Prize is not a guaranteed prize amount and the actual Mega Millions Jackpot amount may vary from the advertised amount, except in circumstances where there is a guaranteed Mega Millions Jackpot Prize amount as described in subsection (g)(1) of this section.

(12) "Product Group" means the MUSL Party Lotteries who are members of the MUSL Mega Millions Product Group and who offer the Mega Millions game product pursuant to the terms of the Cross-Sell Agreement between MUSL and the Mega Millions Lotteries, and in accordance with the Multi-State Lottery Agreement and the MUSL MM Rules.

(13) "Set Prize" or "low-tier prize" means all other prizes, except the Jackpot Prize and, except in instances outlined in this section, or the MUSL MM Rules, will be equal to the prize amount established by the Mega Millions Lotteries.

(14) "Terminal" means a device authorized by the commission for the purpose of issuing Mega Millions game Tickets and as defined in §401.301 of this subchapter (relating to General Definitions).

(15) "Winning Numbers" means the indicia or numbers randomly selected during a Drawing event which shall be used to determine the winning Plays for the Mega Millions game contained on a Game Ticket.

(c) Game Description. Mega Millions is a five (5) out of seventy (70) plus one (1) out of twenty-four (24) lottery game drawn on the day(s), time(s) and location(s) as determined by the Mega Millions Lotteries. Each Mega Millions Play will include a Multiplier, which is a unique number that is automatically selected by the Lottery Gaming System according to the frequency set for in subsection (f) of this section and printed directly on the Mega Millions Ticket. The Multiplier increases non-Jackpot Prizes by two times, three times, four times, five times or ten times the prize won. The Jackpot Prize will be paid at the election of the player made in accordance with this section, or by a default election made in accordance with this section, either on a graduated annuitized annual pari-mutuel basis or as a cash value option using a rate determined by the Mega Millions Lotteries on a pari-mutuel basis. Except as provided in this section, all other prizes are paid on a single payment basis. During the Drawing event, five (5) numbers shall be drawn from the first set of seventy (70) numbers, and one (1) number shall be drawn from the second set of twenty-four (24) numbers, which shall constitute the Winning Numbers. The Multiplier for each Play will be automatically selected by the Lottery Gaming System and printed on the Ticket at time of purchase.

(1) Mega Millions Play. To play Mega Millions, a player shall select (or request a Quick Pick) five (5) different numbers, from a field of one (1) through seventy (70), and one (1) additional number from a second field of one (1) through twenty-four (24). The player selected (or the requested Quick Pick) number from the second field may be the same as one of the five numbers from the first field. The Lottery Gaming System will randomly generate the Multiplier, which will be included on each Mega Millions Play purchased and will multiply low-tier prizes only. The Multiplier is included in the price of a Play and is not an add-on. The Multiplier is further defined in subsection (b)(6) of this section. MM Plays can be purchased for five dollars (U.S. $5.00), including any specific statutorily-mandated tax of a Party Lottery to be included in the price of a lottery Play. Plays may be purchased from a commission approved Sales Agent in a manner as approved by the commission and in accordance MUSL MM rules.

(2) Claims. A Ticket shall be the only proof of a game Play or Plays and is subject to the validation requirements set forth in subsection (h) of this section. The submission of a winning Ticket to the commission or its authorized Sales Agent shall be the sole method of claiming a prize or prizes. A playslip has no pecuniary or prize value and shall not constitute evidence of Play purchase or of numbers selected. A terminal-produced paper receipt has no pecuniary or prize value and shall not constitute evidence of Play purchase or of numbers selected.

(3) Cancellations Prohibited. In all instances, a Play recorded on the Lottery Gaming System may not be voided or cancelled by returning the Ticket to the Sales Agent or to the commission, including Tickets that are misprinted, illegible, printed in error, or for any reason not successfully transferred to an authorized selling entity or player. A Selling Lottery may develop an approved method of compensating retailers for Plays that are not transferred to a player for a reason acceptable to the Selling Lottery and not prohibited by the Mega Millions Product Group. No Play that is eligible for a prize can be returned to the commission for credit. Plays accepted by retailers as returned Plays and which cannot be re-sold shall be deemed owned by the bearer thereof.

(4) Maximum Purchase. The maximum number of consecutive drawings on a single Play purchase is ten (10).

(5) Subscription sales. A subscription sales program may be offered, at the discretion of the executive director.

(d) Mega Millions Prize Pool. The prize pool for all prize categories offered by the Party Lotteries shall consist of up to fifty-five percent (55%) of each Drawing period's sales, inclusive of any specific statutorily-mandated tax of a Party Lottery to be included in the price of a MM Play, and inclusive of contributions to the prize pool accounts and prize reserve accounts, but may be higher or lower based upon the number of winning Plays at each prize level, as well as the funding required to meet a guaranteed Annuity Jackpot Prize as may be required by subsection (g)(1) of this section.

(1) Mega Millions Prize Pool Accounts and Prize Reserve Accounts. The Product Group shall set the contribution rates to the Prize Pool and Prize Reserve Accounts established by this section.

(A) The following Prize Reserve Account for the Mega Millions game is hereby established: the Prize Reserve Account (PRA) which is used to guarantee the payment of valid, but unanticipated, Jackpot Prize claims that may result from a system error or other reason, to fund deficiencies in the Set-Aside Pool, and to fund pari-mutuel prize deficiencies as defined and limited in subsection (d)(3)(A) of this section.

(B) The following Prize Pool Accounts for the Mega Millions game are hereby established:

(i) The Jackpot Prize Pool (JPP), which is used to fund the current Jackpot Prize;

(ii) The Set Prize Pool (SPP), which is used the fund the Set Prizes. The SPP shall hold the temporary balances that may result from having fewer than expected winners in the Set Prize (aka low-tier prize) categories. The source of the SPP is the Party Lottery's weekly prize contributions less actual Set Prize liability; and

(iii) The Set-Aside Pool (SAP), which is used to fund the payment of the awarded minimum starting Annuity Jackpot Prizes and the minimum Annuity Jackpot Prize increase, if necessary (subject to the limitations in this section or the MUSL MM Rules), as may be set by the Product Group. The source of the SAP funding shall accumulate from the difference between the amount in the Jackpot Prize Pool at the time of a Jackpot Prize win and the amount needed to fund Jackpot Prize payments as determined by the Mega Millions Lotteries.

(C) The maximum balance amounts and balance limit triggers are subject to review by the MUSL Board Finance Committee. The Finance Committee shall have two weeks to state objections, if any, to the approved maximum balance amounts or balance limiter triggers. Approved maximum balance amounts or balance limiter triggers shall become effective no sooner than two weeks after notice is given to the Finance Committee and no objection is stated or sooner if the Committee affirmatively approves the maximum balance amounts or balance limiter triggers. The Product Group may appeal the Committee's objections to the full Board. Group approved changes in the maximum balance amounts or balance limiter triggers set by the Product Group shall be effective only after the next Jackpot Prize win.

(D) The contribution rate to the JPP from MM Plays shall be 37.6509% of sales. An amount up to five percent (5%) of a Party Lottery's sales, including any specific statutorily mandated tax of a Party Lottery to be included in the price of a lottery play, shall be added to a Party Lottery's Mega Millions Prize Pool contribution and placed in trust in one or more prize pool and prize reserve accounts held by the Product Group at any time that the Party Lottery's share of the PRA is below the amounts designated by the Product Group.

(E) The Product Group may determine to expend all or a portion of the funds in the prize pools (except the JPP) and the prize reserve accounts:

(i) for the purpose of indemnifying the Party Lotteries in the payment of prizes to be made by the Selling Lotteries; and

(ii) for the payment of prizes or special prizes in the game, limited to prize pool and prize reserve contributions from lotteries participating in the special prize promotion, subject to the approval of the Board's Finance Committee or that Committee's failure to object after given two weeks' notice of the planned action, which actions may be appealed to the full Board by the Product Group.

(F) The prize reserve shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and sales percentage shares of the Party Lotteries.

(G) A Party Lottery may contribute to its sales percentage share of prize reserve accounts over time, but in the event of a draw down from a reserve account, a Party Lottery is responsible for payment of its full sales percentage share of the prize reserve account.

(H) Any amount remaining in the Mega Millions prize pool accounts or prize reserve accounts when the Product Group declares the end of the game shall be returned to the lotteries participating in the prize pool and prize reserve accounts after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game, or otherwise expended in a manner at the election of the individual Members of the Product Group in accordance with jurisdiction statute.

(2) Expected Prize Payout. The Jackpot Prize payout shall be determined on a pari-mutuel basis. Except as otherwise provided in this section, all other prizes awarded shall be paid as single payment prizes. All prize payouts are made with the prize payout percentages set out in Figure 16 TAC 401.315(e), which does not include an additional amount held in prize reserves, although the prize payout percentages per draw may vary.

(A) The Jackpot Prize amount shall be divided equally by the number of MM Plays winning the Jackpot Prize.

(B) The SPP (for payment of single payment prizes of one million dollars ($1,000,000.00) or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.

(3) Pari-mutuel Prize Determinations. Except as otherwise provided for in subparagraph (C) of this paragraph below:

(A) If the total of the Mega Millions Set Prizes (as multiplied by the respective Multiplier) awarded in a drawing exceeds the percentage of the prize pool allocated to the Mega Millions Set Prizes, then the amount needed to fund the Mega Millions Set Prizes awarded shall be drawn from the following sources, in the following order:

(i) the amount available in the SPP, if any;

(ii) an amount from the PRA, if available, not to exceed forty million dollars ($40,000,000.00) per drawing.

(B) If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes, then the highest Set Prize shall become a pari-mutuel prize. If the amount of the highest Set Prize when paid on a pari-mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize shall become a pari-mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this section shall be divided among the winning MM Plays in proportion to their respective prize percentages. Mega Millions prizes will be reduced by the same percentage.

(C) By agreement with the Mega Millions Lotteries, the Mega Millions Lotteries shall independently calculate their set pari-mutuel prize amounts. The Party Lotteries and the Mega Millions Lotteries shall than agree to set the pari-mutuel prize amount for all lotteries selling the game at the lesser of the independently-calculated prize amounts.

(4) Except as may be required by subsection (g)(1) of this section, the official advertised Jackpot Prize annuity amount is subject to change based on sales forecasts and/or actual sales.

(5) Subject to the laws and rules governing each Party Lottery, the number of prize categories and the allocation of the prize fund among the prize categories may be changed at the discretion of the Mega Millions Lotteries, for promotional purposes. Such change shall be announced by Mega Millions Lotteries.

(e) Prize Structure. The matrix of 5/70 and 1/24 with an anticipated prize payout is shown below and applies to all Product Group members with respect to the Jackpot Prize, and will apply for all Product Group members for the second through ninth level prizes. The following table sets forth the odds of winning and the probable distribution of winning Plays in and among each prize category for MM Plays, based upon the total number of possible combinations in Mega Millions. All prize payouts are made with the following expected prize payout percentages, which does not include any additional amount contributed to or held in prize reserves, although the prize payout percentages per draw may vary:

Figure: 16 TAC §401.315(e) (.pdf)

(f) Multiplier Frequency and Odds. The Multiplier shall apply to all prize levels except the Jackpot Prize. The Multiplier increases non-Jackpot Prizes by two times, three times, four times, five times, or ten times the prize won. The Multiplier shall print directly on the Ticket for each Play. Multipliers may repeat on a printed Ticket due to the frequency and limited Multiplier levels as shown below. The Multiplier frequency and odds are as follows:

Figure 16 TAC §401.315(f) (.pdf)

(g) Mega Millions Prize Payment.

(1) Mega Millions Jackpot Prize. The prize money allocated from the current Mega Millions prize pool for the Jackpot Prize, will be divided equally among all Jackpot Prize winning MM Plays in all Participating Lotteries. The Annuity Jackpot Prize amount will be paid in thirty (30) graduated annual installments. Jackpot Prizes won shall be funded by the Selling Lotteries in accordance with the formula set by the Mega Millions Lotteries. The Mega Millions Lotteries may set a minimum guaranteed annuitized Jackpot Prize amount that shall be advertised by the Selling Lotteries as the starting guaranteed annuitized Jackpot Prize amount. At the time of Ticket purchase, a player must select a payment option of either a single cash value payment or annuitized payments of a share of the Jackpot Prize if the Play is a winning Play. A player's selection of the payment option at the time of purchase from the commission is final and cannot be revoked, withdrawn, or otherwise changed. If no selection is made, payment option will be as described in the chart below:

Figure: 16 TAC §401.315(g)(1) (.pdf)

(2) Mega Millions Prize Rollover. If in any Mega Millions Drawing there are no MM Plays that qualify for the Jackpot Prize category, the portion of the prize fund allocated to such Jackpot Prize category shall remain in the Jackpot Prize category and be added to the amount allocated for the Jackpot Prize category in the next consecutive Mega Millions Drawing.

(3) A player(s) who elects a cash value option payment shall be paid his/her share(s) in a single cash payment upon completion of validation procedures determined by the commission. The cash value option amount shall be determined by the Mega Millions Lotteries.

(4) All annuitized prizes shall be paid annually in thirty (30) consecutive graduated annual installments by the commission upon completion of validation procedures determined by the commission, with graduated annual installments as defined by the Mega Millions Lotteries in the Mega Millions Finance and Operations Procedures. The initial payment shall be paid upon completion of the validation procedures. The subsequent twenty-nine (29) payments shall be paid annually to coincide with the month of the federal auction date at which the bonds were purchased to fund the annuity. All such payments shall be made within seven (7) days of the anniversary of the annual auction date. The annuitized option prize shall be determined by multiplying the winning Play's share of the Jackpot Prize Pool by the annuity factor established in accordance with Texas law and the rules of the Texas Comptroller of Public Accounts.

(5) If individual shares of the Jackpot Prize Pool funds held to fund an annuity is less than $250,000.00, the Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the Jackpot Prize Pool.

(6) Funds for the initial payment of an annuitized prize or the lump sum cash value option payment shall be made available by MUSL for payment by the Party Lottery on a schedule approved by the Product Group. If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full cash value option payment amount may be delayed pending receipt of funds from the Party Lotteries or other lotteries participating in the Mega Millions game. A Party Lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL.

(7) Payment of Prize Payments upon the Death of a Prize Winner. In the event of the death of a prize winner, payments may be made in accordance with §401.310 of this subchapter (relating to Payment of Prize Payments Upon Death of Prize Winner), otherwise, payment of prize payments will be made to the estate of a deceased prize winner in accordance with Texas Government Code §466.406.

(8) Prize Payments. All prizes shall be paid through the Selling Lottery that sold the winning Play(s). All low-tier cash prizes (all prizes except the Jackpot Prize) shall be paid in cash or warrants in accordance with Texas statutes and these rules. A Selling Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the MUSL central office.

(9) Prizes Rounded. Annuitized payments of the Jackpot Prize or a share of the Jackpot Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Jackpot Prize win shall be added to the first payment to the winner or winners. Prizes other than the Jackpot Prize, which, under this section, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next Drawing.

(10) Limited to Highest Prize Won. The holder of a winning MM Play may win only one (1) prize per Play in connection with the Winning Numbers drawn, and shall be entitled only to the prize won by those numbers in the highest matching prize category. All liabilities for a Mega Millions prize are discharged upon payment of a prize claim.

(11) Claim Period. Prizes must be claimed no later than 180 days after the draw date, or in accordance with Texas Government Code §466.408(e).

(h) Ticket Validation.

(1) To be a valid Play and eligible to receive a prize, a Play's Ticket shall satisfy all the requirements established by the commission for validation of winning Plays sold through the Lottery Gaming System, as well as any other validation requirements adopted by the Product Group, the MUSL Board and published as the Confidential MUSL Minimum Game Security Standards. The MUSL and the Party Lotteries shall not be responsible for Plays or Tickets that are altered in any manner.

(2) Under no circumstances will a claim for any prize be paid without an official Mega Millions Ticket issued as authorized by the commission and matching all game Play, serial number and other validation data residing in the commission's Lottery Gaming System and such Ticket shall be the only valid proof of the wager placed and the only valid receipt for claiming or redeeming such prize.

(3) In addition to the above, in order to be deemed a valid, winning Mega Millions Play, all of the following conditions must be met:

(A) The validation data must be present in its entirety and must correspond, using the computer validation file, to the number selections printed on the Ticket for the applicable drawing date(s);

(B) The Ticket must be intact;

(D) The Ticket must not be counterfeit or an exact duplicate of another winning Ticket;

(E) The Ticket must have been issued by an authorized Sales Agent on official Texas Lottery paper stock or, for third-party point-of-sale systems approved by the commission, printed on paper stock or otherwise issued in a manner approved by the commission to provide tangible evidence of participation in a lottery game;

(F) The Ticket must not have been stolen, to the knowledge of the commission;

(G) The Ticket must be submitted for payment in accordance with the prize claim procedures of the commission as set out in §401.304 of this subchapter and any internal procedures used by the commission;

(H) The Play data on the Ticket must have been recorded on the Lottery Gaming System prior to the Drawing and the Play data must match this computer record in every respect. In the event of a contradiction between information as printed on the Ticket and as accepted by the commission's Lottery Gaming System, the wager accepted by the commission's Lottery Gaming System shall be the valid wager;

(I) The player or Quick Pick number selections, validation data and the drawing date(s) of an apparent winning Play must appear in the official file of winning Plays, and a Play with that exact data must not have been previously paid;

(J) The Play must not be misregistered, and the Play's Ticket must not be defectively printed or printed or produced in error to an extent that it cannot be processed by the commission;

(K) The Ticket must pass confidential validation tests in accordance with the MUSL MM Rules. In addition, the Ticket must pass all other confidential security checks of the commission;

(L) In submitting a Ticket for validation, the claimant agrees to abide by applicable laws, all rules and regulations, instructions, conditions and final decisions of the executive director of the commission;

(M) There must not be any other breach of the MUSL MM Rules, or this subchapter, in relation to the Play, which, in the sole and final opinion of the executive director of the commission, justifies invalidation; and

(N) The Ticket must be submitted to the commission, or the Selling Lottery that issued it.

(4) A Play submitted for validation that fails any of the preceding validation conditions shall be considered void, subject to the following determinations:

(A) In all cases of doubt, the determination of the commission shall be final and binding; however, the commission may, at its option, replace an invalid Play with a Mega Millions Play of equivalent sales price;

(B) In the event a defective Ticket is purchased or in the event the commission determines to adjust an error, the claimant's sole and exclusive remedy shall be the replacement of such defective or erroneous Ticket(s) with a Mega Millions Play of equivalent sales price; and

(C) In the event a Mega Millions Play is not paid by the commission and a dispute occurs as to whether the Play is a winning Play, the commission may, at its option, replace the Play as provided in subparagraph (A) of this paragraph. This shall be the sole and exclusive remedy of the claimant.

(i) Ticket Responsibility.

(1) Prize Claims. Prize claim procedures shall be governed by the rules of the commission. The MUSL and the Selling Lotteries shall not be responsible for prizes that are not claimed following the proper procedures as determined by the commission.

(2) Stolen Plays. The Product Group, the MUSL, the Party Lotteries and the commission shall not be responsible for lost or stolen Plays.

(3) The Party Lotteries shall not be responsible to a prize claimant for Mega Millions Plays redeemed in error by a Texas Lottery Sales Agent.

(4) Winning Plays are determined by the numbers drawn and certified by the independent auditor responsible for auditing the Mega Millions draw. MUSL, the Party Lotteries and the commission are not responsible for Mega Millions winning numbers reported in error.

(j) Ineligible Players.

(1) A Play, or share of a Play, for a MUSL game issued by the MUSL or any of its Party Lotteries shall not be purchased by, and a prize won by any such Play, or share of a Play, shall not be paid to:

(A) a MUSL employee, officer, or director;

(B) a contractor or consultant under agreement with the MUSL to review the MUSL audit and security procedures;

(C) an employee of an independent accounting firm under contract with MUSL to observe drawings or site operations and actually assigned to the MUSL account and all partners, shareholders, or owners in the local office of the firm; or

(D) an immediate family member (parent, stepparent, child, stepchild, spouse, or sibling) of an individual described in subsections (a), (b), and (c) of this section and residing in the same household.

(2) Those persons designated by the State Lottery Act, Texas Government Code, Chapter 466, as ineligible to play its games shall also be ineligible to play any MUSL lottery game sold in the state of Texas.

(3) A Play, or share of a Play, of the Mega Millions game may not be purchased in any lottery jurisdiction by any Party Lottery board member; commissioner; officer; employee; or spouse, child brother, sister or parent residing as a member of the same household in the principal place of residence of any such person. Prizes shall not be paid to any persons prohibited from playing Mega Millions in a particular jurisdiction by rules, governing law, or any contract executed by the Selling Lottery.

(k) Applicable Law.

(1) In purchasing a Play, or attempting to claim a prize, purchasers and prize claimants agree to comply with and abide by all applicable laws, rules, regulations, procedures, and decisions of the commission and by directives and determinations of the commission's executive director. Additionally, the player shall be bound to all applicable provisions in the MUSL MM Rules and the Mega Millions Finance and Operations Procedures as established by the Mega Millions Lotteries.

(2) A prize claimant agrees, as its sole and exclusive remedy, that claims arising out of a Play can only be pursued against the Party Lottery which issued the Play. Litigation, if any, shall only be maintained within the jurisdiction in which the Play was purchased and only against the Party Lottery that issued the Play. No claim shall be made against any other Party Lottery or against the MUSL.

(3) Nothing in this section or the MUSL MM Rules shall be construed as a waiver of any defense or claim the commission, which issued the Play, any other Party Lottery, or MUSL may have in any litigation, including in the event a player or prize claimant pursues litigation against a Party Lottery or MUSL, or their respective officers, directors or employees.

(4) All decisions made by the commission, including the declaration of prizes and the payment thereof and the interpretation of MUSL MM Rules, shall be final and binding on all Play purchasers and on every person making a prize claim in respect thereof, but only in the jurisdiction where the Play was issued.

(5) Unless the laws, rules, regulations, procedures, and decisions of the commission, which issued the Play, provide otherwise, no prize shall be paid upon a Play purchased, claimed or sold in violation of this section, the MUSL MM Rules, or the laws, rules, regulations, procedures, and decisions of the commission; any such prize claimed but unpaid shall constitute an unclaimed prize under this section and the laws, rules, regulations, procedures, and decisions of the commission.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 9, 2024.

TRD-202403671

Bob Biard

General Counsel

Texas Lottery Commission

Earliest possible date of adoption: September 22, 2024

For further information, please call: (512) 344-5324