PART 4. OFFICE OF THE SECRETARY OF STATE
CHAPTER 107. REGISTRATION OF VISION SUPPORT ORGANIZATIONS
The Office of the Secretary of State (Office) proposes new Chapter 107, §§107.1 - 107.5, concerning registration of vision support organizations (VSOs). The Office proposes new rules to implement the registration requirements for VSOs in Senate Bill 820, enacted by the 88th Legislature, Regular Session, codified at Chapter 74 of the Texas Business and Commerce Code (SB 820).
BACKGROUND INFORMATION AND JUSTIFICATION
SB 820, adopted by the 88th Legislature, Regular Session, establishes a required occupational registration for VSOs in Chapter 74 of the Texas Business and Commerce Code. The bill took effect on September 1, 2023.
As enacted by SB 820, Texas Business and Commerce Code §74.002 requires a VSO (as defined in Texas Business and Commerce Code §74.001(3)) to register annually with the Office. Texas Business and Commerce Code §74.004(a) identifies the information that must be included in the VSO's registration filed with the Office. Texas Business and Commerce Code §74.005(c) directs a VSO to file a corrected registration semiannually as necessary. Texas Business and Commerce Code §74.004(b) specifies that a registration and each corrected registration must be accompanied by a fee in an amount set by the Office.
The purpose of these new rules under Chapter 107 (Registration of Vision Support Organizations) is to provide information regarding the procedures for VSO registration with the Office, in accordance with SB 820.
SECTION-BY-SECTION SUMMARY
Proposed §107.1 defines terms used within Chapter 107.
Proposed §107.2 specifies the procedure for a VSO to initially register with the Office, or to renew an existing registration, as required by Texas Business and Commerce Code §§74.002 and 74.004.
Proposed §107.3 provides that a registration of a VSO expires on December 31 of each year and must be renewed annually. The section also designates the time period for a registered VSO to submit a renewal registration and a new VSO to register after executing a vision support agreement (as defined in new §107.1).
Proposed §107.4 establishes the procedures and time periods for a VSO to submit a statement of correction, as required by Texas Business and Commerce Code §§74.004 and 74.005.
Proposed §107.5 sets forth the required fees under Chapter 74 of the Texas Business and Commerce Code.
FISCAL NOTE
SB 820 requires a VSO subject to Chapter 74 of the Texas Business and Commerce Code to file with the Office an annual registration and a corrected registration semiannually as necessary, each of which must be accompanied by a fee in an amount set by the Office. The proposed new rules do not impose any additional costs on a VSO seeking to register with the Office.
Texas Business and Commerce Code §74.004(b) states that a registration and each corrected registration must be accompanied by a fee set by the Office in an amount necessary to recover the costs of administering of Chapter 74 of the Texas Business and Commerce Code. The proposed rules set the fee at $150 for initial and renewal annual registrations, and $50 for statements of correction. Such fees are comparable to those for similar occupational registrations filed with the Office, particularly dental support organizations under Chapter 73 of the Texas Business and Commerce Code (after which SB 820 was closely modeled).
Christopher Burnett, Director of the Office's Business & Public Filings Division, has determined that for each year of the first five years that the proposed new sections will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the proposed rules. In addition, the Office does not anticipate that enforcing or administering the proposed rules will result in any reductions in costs or in any additional costs to the Office, the state, or local governments. The Office also does not anticipate that there will be any loss or increase in revenue to the Office, the state, or local governments as a result of enforcing or administering the proposed rules.
PUBLIC BENEFIT
Mr. Burnett has determined that for each year of the first five years that the proposed new sections will be in effect, the public benefit expected as a result of adopting the proposed new rules will be clarity with respect to the Office's application of Texas Business and Commerce Code §§74.002, 74.004, and 74.005. The proposed new rules will benefit the public by providing information regarding the registration of VSOs with the Office in accordance with Chapter 74 of the Texas Business and Commerce Code.
ECONOMIC COSTS TO PERSONS AND IMPACT ON LOCAL ECONOMY
There are no anticipated economic costs to persons required to comply with the proposed new rules. There is a cost imposed on a VSO seeking to register with the Office, or submitting a renewal or correction related to an existing registration, pursuant to Texas Business and Commerce Code §74.004. However, the Office's proposed new rules do not impose any additional costs on such entities. There is no effect on local economy for the first five years that the proposed new rules will be in effect; therefore, no local employment impact statement is required under Texas Government Code §§2001.022 and 2001.024(a)(6).
FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES
The proposed new rules will have no direct adverse economic impact on small businesses, micro-businesses, or rural communities. Accordingly, the preparation of an economic impact statement and a regulatory flexibility analysis, as specified in Texas Government Code §2006.002, is not required.
GOVERNMENT GROWTH IMPACT STATEMENT
Pursuant to Texas Government Code §2001.0221, the Office provides the following government growth impact statement for the proposed rules. For each year of the first five years that the proposed new rules will be in effect, the Office has determined the following:
(1) the proposed rules will not create or eliminate a government program;
(2) implementation of the proposed rules will not require the creation of new employee positions or the elimination of existing employee positions;
(3) implementation of the proposed rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the proposed rules will not require an increase or decrease in fees paid to the agency;
(5) the proposed rules are new rules and therefore create new regulations;
(6) the proposed rules will not expand, limit, or repeal an existing regulation;
(7) the proposed rules will not increase or decrease the number of individuals subject to the rules' applicability; and
(8) the proposed rules will not positively or adversely affect the state's economy.
REQUEST FOR PUBLIC COMMENTS
Comments or questions on the proposed new rules may be submitted in writing and directed to Adam Bitter, General Counsel, Office of the Secretary of State, P.O. Box 12887, Austin, Texas 78711-2887, or by e-mail to generalcounsel@sos.texas.gov. Comments will be accepted for thirty (30) days from the date of publication of the proposed rules in the Texas Register. Comments should be organized in a manner consistent with the organization of the proposed new rules.
SUBCHAPTER A. DEFINITIONS
STATUTORY AUTHORITY
The proposed new rules are authorized by Texas Government Code §2001.004(1) and Texas Business and Commerce Code §74.004(b). Texas Government Code §2001.004(1) requires a state agency to adopt rules of practice stating the nature and requirements of formal and informal procedures. Texas Business and Commerce Code §74.004(b) directs the Office to set the applicable VSO filing fees. The proposed new rules implement Chapter 74 of the Texas Business and Commerce Code.
CROSS REFERENCE TO STATUTE
No other statute, code, or article is affected by the proposed rules.
§107.1.Definitions.
Words and terms defined in Chapter 74 of the Business and Commerce Code shall have the same meaning in this chapter. In addition, the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Non-optometrist owner--A person, including a corporation, association, general partnership, limited partnership, limited liability company, limited liability partnership, other legal entity, or sole proprietorship, who is not a licensed optometrist but maintains 5% or more ownership in a vision support organization.
(2) Professional entity--A professional corporation, professional limited liability company, professional association, general partnership that provides a professional service, or limited partnership that provides a professional service.
(3) Secretary--The Texas Secretary of State.
(4) Vision support agreement--One or more agreements under which a vision support organization provides two or more business support services to an optometrist.
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 June 6, 2024.
TRD-202402509
Adam Bitter
General Counsel
Office of the Secretary of State
Earliest possible date of adoption: July 21, 2024
For further information, please call: (512) 475-2813
STATUTORY AUTHORITY
The proposed new rules are authorized by Texas Government Code §2001.004(1) and Texas Business and Commerce Code §74.004(b). Texas Government Code §2001.004(1) requires a state agency to adopt rules of practice stating the nature and requirements of formal and informal procedures. Texas Business and Commerce Code §74.004(b) directs the Office to set the applicable VSO filing fees. The proposed new rules implement Chapter 74 of the Texas Business and Commerce Code.
CROSS REFERENCE TO STATUTE
No other statute, code, or article is affected by the proposed rules.
§107.2.Registration and Renewal of Vision Support Organizations.
(a) A complete initial registration or renewal registration is comprised of:
(1) A completed registration form that is signed by a person authorized to act by or on behalf of the vision support organization, in the form promulgated by the secretary (See Form 4101); and
(2) Payment of the filing fee stated in §107.5 of this chapter (relating to Filing Fees).
(b) A registration statement or renewal application must comply with Business and Commerce Code §74.004, and also provide:
(1) For the vision support organization:
(A) The legal name;
(B) The business address and mailing address, if different; and
(C) A contact name, email address, and phone number.
(2) For each optometrist and each entity that employs or contracts with an optometrist to provide eye care services in this state with which the vision support organization has entered into an agreement to provide two or more business support services:
(A) The legal name and business address of each optometrist and each such entity, as applicable;
(B) If the optometrist provides eye care services through a professional entity, the legal name of the professional entity; and
(C) A disclosure of all business support services provided to each optometrist or each entity that employs or contracts with an optometrist to provide eye care services.
(3) For each optometrist who owns any portion of the vision support organization and for each non-optometrist owner who owns 5% or more of the vision support organization:
(A) The legal name and business address of the owner; and
(B) Whether the owner is an optometrist or a non-optometrist owner.
§107.3.Timing of Registration.
(a) Registrations will expire annually on December 31 of each year.
(b) A vision support organization seeking to renew an existing registration must file a renewal registration. Renewals may be submitted from ninety (90) days prior to expiration until January 31 of the year for which the next registration will be effective by submitting a completed registration form and paying the filing fee, except as provided in subsection (c) of this section.
(c) In the event a vision support organization is required to register under Chapter 74 of the Business and Commerce Code after January 31, the vision support organization must file an initial registration within ninety (90) days after the date of execution of a vision support agreement.
(d) The initial registration for a vision support organization that entered into a vision support agreement prior to February 1, 2024, must be filed not later than January 31, 2025.
(e) The initial registration for a vision support organization that first enters into a vision support agreement on or after February 1, 2024, must be filed not later than the ninetieth (90th) day after the date the agreement is executed.
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 June 6, 2024.
TRD-202402510
Adam Bitter
General Counsel
Office of the Secretary of State
Earliest possible date of adoption: July 21, 2024
For further information, please call: (512) 475-2813
STATUTORY AUTHORITY
The proposed new rules are authorized by Texas Government Code §2001.004(1) and Texas Business and Commerce Code §74.004(b). Texas Government Code §2001.004(1) requires a state agency to adopt rules of practice stating the nature and requirements of formal and informal procedures. Texas Business and Commerce Code §74.004(b) directs the Office to set the applicable VSO filing fees. The proposed new rules implement Chapter 74 of the Texas Business and Commerce Code.
CROSS REFERENCE TO STATUTE
No other statute, code, or article is affected by the proposed rules.
§107.4.Corrections.
(a) A vision support organization must submit a statement of correction semiannually if, during that period, any information provided in the initial registration or renewal registration, as applicable, changes.
(b) A statement of correction must include the following information:
(1) The legal name of the vision support organization;
(2) The date of the last filed registration;
(3) The registration number assigned by the secretary to the vision support organization; and
(4) A statement identifying the information that has changed.
(c) A vision support organization that is required to submit a statement of correction in accordance with subsection (a) of this section shall do so according to the following schedule:
(1) First half (January 1 - June 30) - Statement of correction due not later than the forty-fifth (45th) day after June 30.
(2) Second half (July 1 - December 31) - Statement of correction due not later than the forty-fifth (45th) day after December 31.
(d) The statement of correction must be signed by a person authorized to act by or on behalf of the vision support organization.
(e) The statement of correction must be accompanied by the filing fee stated in §107.5 of this chapter (relating to Filing Fees).
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 June 6, 2024.
TRD-202402511
Adam Bitter
General Counsel
Office of the Secretary of State
Earliest possible date of adoption: July 21, 2024
For further information, please call: (512) 475-2813
STATUTORY AUTHORITY
The proposed new rules are authorized by Texas Government Code §2001.004(1) and Texas Business and Commerce Code §74.004(b). Texas Government Code §2001.004(1) requires a state agency to adopt rules of practice stating the nature and requirements of formal and informal procedures. Texas Business and Commerce Code §74.004(b) directs the Office to set the applicable VSO filing fees. The proposed new rules implement Chapter 74 of the Texas Business and Commerce Code.
CROSS REFERENCE TO STATUTE
No other statute, code, or article is affected by the proposed rules.
§107.5.Filing Fees.
(a) The filing fee for an initial registration or a renewal registration is $150.
(b) The filing fee for a statement of correction is $50.
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 June 6, 2024.
TRD-202402512
Adam Bitter
General Counsel
Office of the Secretary of State
Earliest possible date of adoption: July 21, 2024
For further information, please call: (512) 475-2813