TITLE 16.ECONOMIC REGULATION

Part 2. PUBLIC UTILITY COMMISSION OF TEXAS

Chapter 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS

Subchapter R. CUSTOMER PROTECTION RULES FOR RETAIL ELECTRIC SERVICE

16 TAC §25.478

The Public Utility Commission of Texas (commission) proposes an amendment to §25.478, relating to Credit and Deposit Requirements for Residential Customers. The proposed amendment will allow victims of family violence and customers who are 65 years or older whose household income is at or below 150% of the poverty guidelines to satisfy retail electric providers' (REPs') credit and/or deposit requirements. This rule is a competition rule subject to judicial review as specified in PURA §39.001(e). Project Number 31853 is assigned to this proceeding.

Annette Lown Mass, Legal Division, has determined that for each year of the first five-year period the proposed section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Ms. Mass has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be the ability of victims of domestic violence and the elderly in poverty who are unable to pay a deposit, to choose among all REPs serving their geographic area rather than accepting service from their affiliated REP or POLR.

The commission is not aware of any adverse economic effect on small businesses or micro-businesses as a result of enforcing this section.

There may be economic costs to persons who are required to comply with the proposed section. These costs are the result of waiving the deposits for customers who meet the criteria. However, it is believed that the benefits accruing from implementation of the proposed section will outweigh these costs.

Ms. Mass has also determined that for each year of the first five years the proposed section is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act (APA), Texas Government Code §2001.022.

The commission staff will conduct a public hearing on this rulemaking, if requested pursuant to the Administrative Procedure Act, Texas Government Code §2001.029, at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701. The request for a public hearing must be received within 30 days after publication.

Comments on the proposed amendment may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711- 3326, within 30 days after publication. Sixteen copies of comments to the proposed amendment are required to be filed pursuant to §22.71(c) of this title. Reply comments may be submitted within 45 days after publication. Comments should be organized in a manner consistent with the organization of the proposed rule(s). The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed section. The commission will consider the costs and benefits in deciding whether to adopt the section. All comments should refer to Project Number 31853.

The commission proposes this rule amendment pursuant to the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998 & Supplement 2005) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and specifically pursuant to PURA §39.101, which grants the commission authority to establish various, specific protections for retail customers; PURA §39.102, which provides for retail customer choice; and PURA chapter 17, subchapters A, C and D, which deal, respectively, with general provisions relating to customer protection policy, the retail customer's right to choice, and protection of the retail customer against unauthorized charges.

Cross Reference to Statutes: PURA §§14.002, 39.101, 39.102, and PURA chapter 17, subchapters A, C and D.

§25.478.Credit Requirements and Deposits.

(a) Credit requirements for residential customers. A retail electric provider (REP) may require a residential customer or applicant to establish and maintain satisfactory credit as a condition of providing service pursuant to the requirements of this section.

(1) - (2) (No change.)

(3) A residential customer or applicant seeking to establish service with an affiliated REP or provider of last resort (POLR) can demonstrate satisfactory credit using one of the criteria listed in subparagraphs (A) through (E) of this paragraph. [ A REP other than an affiliated REP or POLR may establish other criteria by which a customer or applicant can demonstrate satisfactory credit, so long as such criteria are not discriminatory pursuant to §25.471(c) of this title (relating to General Provisions of Customer Protection Rules). ]

(A) - (E) (No change.)

(4) A residential customer or applicant seeking to establish service with a REP other than an affiliated REP or POLR can demonstrate satisfactory credit using one of the criteria listed in subparagraphs (A) through (B) of this paragraph. A REP other than an affiliated REP or POLR may establish additional methods by which a customer or applicant not meeting the criteria of subparagraphs (A) or (B) of this paragraph can demonstrate satisfactory credit, so long as such criteria are not discriminatory pursuant to §25.471(c) of this title (relating to General Provisions of Customer Protection Rules).

(A) The residential customer or applicant is 65 years of age or older and the customer is not currently delinquent in payment of any electric service account.

(B) The customer or applicant has been determined to be a victim of family violence as defined in the Texas Family Code §71.004, by a family violence center as defined in Texas Human Resources Code §51.002, by treating medical personnel, by law enforcement personnel, by the Office of a Texas District Attorney or County Attorney, by the Office of the Attorney General, or by a grantee of the Texas Equal Access to Justice Foundation. This determination shall be evidenced by submission of a certification letter developed by the Texas Council on Family Violence. The certification letter may be submitted directly by use of a toll- free fax number to the REP.

(5) [ (4) ] Pursuant to the Public Utility Regulatory Act (PURA) §39.107(g), a REP that requires pre-payment for metered residential electric service may not charge an amount for electric service that is higher than the price charged by the POLR in the applicable transmission and distribution service territory.

(6) [ (5) ] The REP may obtain payment history information from any REP that has served the applicant in the previous two years or from a consumer reporting agency, as defined by the Federal Trade Commission. The REP shall obtain the customer's or applicant's authorization prior to obtaining such information from the customer's or applicant's prior REP. A REP shall maintain payment history information for two years after a customer's electric service has been terminated or disconnected in order to be able to provide credit history information at the request of the former customer.

(b) - (l) (No change.)

[ (m) This section is effective June 1, 2004. ]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 23, 2006.

TRD-200601778

Adriana A. Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: May 7, 2006

For further information, please call: (512) 936-7223


Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 75. AIR CONDITIONING AND REFRIGERATION CONTRACTORS

16 TAC §§75.10, 75.20 - 75.24, 75.26, 75.30, 75.40, 75.65, 75.70, 75.71, 75.80, 75.90, 75.100

The Department of Licensing and Regulation (''Department'') proposes amendments to existing rules at 16 Texas Administrative Code, §§75.10, 75.20 - 75.24, 75.26, 75.30, 75.40, 75.65, 75.70, 75.80, 75.90, and 75.100, and new rule §75.71 regarding the air conditioning and refrigeration contractor program.

Rule 75.10 is amended in several areas to clarify language and to remove unnecessary provisions and words. In the definition of ''business affiliation'' the words ''or her'' are deleted to avoid use of ''his or her''. In the definition of ''contracting'' ''verbally'' is changed to ''orally'', and relocated to clarify the language. The definition of ''direct supervision'' is reworded for better flow of language by replacing ''for compliance with'', with, ''to assure''. In addition, the first words of subsection were made lower case to be consistent with other sections of these rules. The definition of ''filed'' is deleted, as that definition should be in the agency's general rules. In the definition of ''full time employee'' the word ''either'' is added to make it clear that there are two ways for employees of a contracting company to be considered as full time employees.

Rule 75.20. Licensing requirements--Application and Experience Requirements. In subsection (b)(3) the reference to the Coordinating Board of Texas College and University System is changed to the Texas Higher Education Coordinating Board. Subsection (c) is deleted because a section addressing administrative penalties is included in the agency's general rules.

Rule 75.21. Licensing requirements--Examinations. Subsections (b) and (c) are deleted since they are not licensing requirements, but are procedural matters that are addressed on the application forms for licensure. In subsection (d), the phrase, ''has been'' is replaced with ''is'' for clarification.

Rule 75.22. General License Provisions. Subsection (a) is deleted as the prohibition against a contracting company using a license that is not assigned to it, is included in new §75.71. Subsection (b) provides that a license, rather than a license number, is not transferable. Paragraphs (1) and (2) were added to include the requirements set out in the old subsection (d) that has been deleted. In subsection (d), ''either'' was replaced by ''an'' ''and the word ''two'' by ''combined'', to clarify the language. In subsection (e), language is clarified and provides that two different license numbers will be issued on one card and will expire concurrently. Subsection (k) is deleted as the prohibition against altering a license and is moved to §75.70(j). The provision regarding the responsibility of licensees in subsection (i) is deleted as it is addressed in §75.70. Subsection (m) is deleted since it no longer reflects procedures of the agency. Today credit card type licenses are issued to all licensees.

Rule 75.23. Licensing Requirements--Temporary Licenses. In subsection (c), the reference to ten business days is changed to thirty days to make timelines set out in these rules consistent with timelines used in other programs administered by the agency. In subsection (e), the phrase, ''temporary method'' was replaced with ''other temporary methods'' to clarify the language. The provision in subsection (f) allowing the Executive Director to waive any requirement for issuance of a temporary license is deleted.

Rule 75.24. Licensing Requirements--Renewal. In subsection (a) ''request'' is changed to ''application'' and the phrase ''if any'' is added to the end of subsection (a)(2) to make it clear that a licensee may work for a company without assigning his license. In subsection (b), language is added to reference the Administrative Procedure Act.

Rule 75.26. Sale and Use of Refrigerants--Certificate of Registration. The title is amended to refer to the sale and use of refrigerants. Subsection (a) is amended by adding the word ''application'' before the word ''fee'' to clarify the type of fee. In subsection (b), ''Persons'' is changed to ''Registrants'' since statute defines person as an individual.

Rule 75.30. Exemptions. The exemption in subsection (a)(4) is deleted, as it is not provided for in statute.

Rule 75.40. Insurance Requirements. Subsection (c) is amended to clarify that insurance companies that provide insurance to licensees must be authorized by the Texas Insurance Code to sell insurance, to make this provision consistent with the Texas Insurance Code. In subsection (d) a requirement is added that licensees must file a new insurance certificate when changing an affiliation. Subsection (h) is deleted and moved to §75.70(i).

Rule 75.65. Advisory Board. In subsection (a), ''Executive Director'' is changed to ''Commission'' as the board is charged by statute with the duty to advise the Commission. Subsection (b) is deleted since the Executive Director interacts directly with the board. Subsection (c) is deleted since the statute at §1302.208 provides that the presiding officer calls meetings.

Rule 75.70. Responsibilities of the Licensee. The section title is amended by deleting the reference to air conditioning and refrigeration contracting companies. The rule is also amended by deleting references to contracting companies as those matters are addressed in new rule §75.71. In subsection 75.70(a)(1) the phrase, ''a business'' is replaced by ''an air conditioning and refrigeration contracting company'' and ''or her'' is deleted to make this section consistent with other sections of these rules. In subsection 75.70(a)(2), ''a bona fide'' is replaced by ''an''. The deleted phrase adds very little to the rule and may cause confusion without an added definition of the term. In subsection 75.70(a)(4), ''or her'' is deleted and ''air conditioning and refrigeration contracting'' is added before the word ''company'', and ''through which the licensee provides services'' is added to make it clear that a licensee may work for a contracting company without assigning his license to the company. Subsections 75.70(a)(5) and (6) and (b)(1) - (6) are deleted and moved to §75.71. Subsection 75.70(a)(5) is amended to make it clear that licensees, whether or not they are supervising licensees, are responsible for their work. Language is added to subsection 75.70(a)(6) to make it clear that only licensees who have supervisory responsibility for a contracting company have certain responsibilities. Subsection 75.70(a)(7) is amended by adding ''assure the'' before ''mechanical integrity'' and adding the phrase ''of work and installations performed or supervised by the licensee''. New subsection 75.70(a)(9) is added since the enforcement authority is primarily effective with licensees. If a licensee may lose his license for knowingly working for a company that does not comply with the rules, this may put some pressure on companies to comply. Subsections 75.70(g), (i), and (k) - (n) are deleted and moved to Rule 75.71. Subsection 75.70(f) is amended to prohibit a licensee from allowing another person to use his license. Subsection 75.70(g) is added to state separately from §75.70(f) that a licensee may not allow a company to use his license if the licensee is not affiliated with the company. In subsection (h)(1) the ten day notice requirement is changed to thirty days to be consistent with timelines used in other agency programs. In subsection (h)(2) the ten day notice requirement changed to thirty days, and the requirement to report an address change was dropped since that requirement is set out in §75.70(h)(1). Subsection (i) is new to this rule as it was moved from §75.40(h). Subsection (j) is new to this rule as it was moved from §75.22(k).

Rule 75.71. Responsibilities of the Air Conditioning and Refrigeration Contracting Company. Provisions concerning contracting companies deleted from §75.70 are found in this new rule. No substantive changes were made.

In §75.80, the application and license fees are combined into a single fee. In subsection 75.80(f) the word ''application'' is added to make it clear that the fee is for the application rather than for the Certificate of Registration.

In §75.90 the words ''or entity'' are added to make it clear that individuals and organizations may be sanctioned for violations of the statute and the rules.

Rule 75.100. Technical Requirements. The reference to the National Electric Code is changed from ''current'' to ''applicable''. In subsection 75.100(d), the word ''work'' is added to clarify the language.

These proposed rule changes are necessary to update statutory references and to conform rule requirements to current law. In addition, the rule changes are needed to reorganize certain provisions for greater clarity and readability and to delete unnecessary provisions.

William H. Kuntz, Jr., Executive Director, has determined that for the first five-year period the proposed amendments and new rule are in effect there will be no cost to state or local government as a result of enforcing or administering the amendments and new rule.

Mr. Kuntz also has determined that for each year of the first five-year period the proposed amendments and new rule are in effect, the public benefit will be that air conditioning and refrigeration contractor personnel and air conditioning and refrigeration users will have clearer explanations concerning the legal requirements governing air conditioning and refrigeration contractors.

There will be no effect on small or micro-businesses because of the proposed amendments and new rule. There are no anticipated economic costs to persons who are required to comply with the rules as amended.

Comments on the proposal may be submitted to Craig Crowell, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or facsimile (512) 475-3032, or electronically: craig.crowell@license.state.tx.us. The deadline for comments is 30 days after publication in the Texas Register .

The amendments and new rule are proposed under Texas Occupations Code, Chapters 51 and 1302, which authorizes the Department to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposal are those set forth in Texas Occupations Code, Chapters 51 and 1302. No other statutes, articles, or codes are affected by the proposal.

§75.10.Definitions.

The following words and terms have the following meanings:

(1) - (7) (No change.)

(8) Business affiliation--The business organization to which a licensee elects to assign his [ or her ] license.

(9) (No change.)

(10) Contracting--Agreeing , either orally or in writing, to perform work [ , either verbally or in writing, ] or performing work, either personally or through an employee or subcontractor.

(11) - (13) (No change.)

(14) Direct supervision--Directing and verifying the design, installation, construction, maintenance, service, repair, alteration, or modification of an air conditioning, refrigeration, process cooling, or process heating product or equipment to assure [ for compliance with ] mechanical integrity. Verification may include, but is not limited to:

(A) personal [ Personal ] inspection of a job;

(B) contacting [ Contacting ] the customer by mail, e-mail, or telephone to determine if the customer is satisfied with the installation and service provided;

(C) reviewing [ Reviewing ] a checklist completed by a person who performed some or all of the work on a job; and

(D) reviewing [ Reviewing ] an inspection report of the job made by a municipal mechanical inspector.

(15) - (16) (No change.)

[ (17) Filed--a document is deemed to have been filed with the department on the date that the document has been received by the department or, if the document has been mailed to the department, the postmark date of the document.]

(17) [ (18) ] Full time employee--an employee who is present on the job either 40 hours a week, or at least 80% of the time the company is offering air conditioning and refrigeration contracting services to the public, whichever is less.

(18) [ (19) ] Licensee--an individual holding a license of the class and endorsement appropriate to the work performed under the Act and these rules.

(19) [ (20) ] Permanent office--Any location, which must be identified by a street address, or other data identifying a rural location, from which a person or business entity conducts the business of an air conditioning and refrigeration contracting company. A location not open to the public, or not located within the state, may serve as a permanent office so long as the department and consumers have access to the licensee required by §1302.252 of the Act to be employed in each permanent office.

(20) [ (21) ] Primary process medium--a refrigerant or other primary process fluid that is classified in the current ANSI/ASHRAE Standard 34 as Safety Group A1, A2, B1, or B2. Safety Groups A3 and B3 refrigerants are specifically excluded.

(21) [ (22) ] Proper installation, and service--installing, servicing, repairing, and maintaining air conditioning and refrigeration equipment in accordance with:

(A) applicable municipal ordinances and codes adopted by a municipality where the installation occurs;

(B) the current Uniform Mechanical Code or the current International Mechanical Code and International Fuel Gas Code, in areas where no code has been adopted;

(C) the manufacturer's specifications and instructions; and

(D) all requirements for safety and the proper performance of the function for which the equipment or product was designed.

(22) [ (23) ] Repair work--diagnosing and repairing problems with air conditioning, commercial refrigeration, or process cooling or heating equipment, and remedying or attempting to remedy the problem. Repair work does not mean simultaneous replacement of the condensing unit, furnace, and evaporator coil.

§75.20.Licensing Requirements--Application and Experience Requirements.

(a) (No change.)

(b) An applicant who uses credit for air conditioning and refrigeration courses to fulfill up to two years of the required 36 months of experience with the tools of the trade must furnish a copy of:

(1) - (2) (No change.)

(3) transcript of courses taken without earning a certificate or diploma emphasizing hands-on training with the tools of the trade. Transcripts must be from schools authorized or approved by the Texas Workforce Commission, the U.S. Department of Labor, the Texas Higher Education Coordinating Board, [ Coordinating Board of the Texas College & University System, ] or other organizations recognized by the Department. Credit will be allowed at the rate of one month credit for every two months of completed training. Thirty semester hours are equivalent to six months credit of experience. For schools issuing certificates based on classroom hours, fifteen lecture hours are equivalent to one semester hour and 30 lab hours are equivalent to one semester hour.

[ (c) Obtaining a license by fraud or false representation is grounds for revocation, license denial, or other administrative sanction and/or penalty.]

§75.21.Licensing Requirements--Examinations.

(a) (No change.)

[ (b) The examinations will be administered to applicants in a format determined by the Department.]

[ (c) Subject to the following provisions, an applicant may request an accommodation in accordance with the Americans with Disabilities Act or language translation.]

[ (1) The request must be in writing on a form approved by the Department.]

[ (2) Proof of disability may be required.]

[ (3) Language translation costs shall be paid by the applicant.]

(b) [ (d) ] An applicant who does not show up for a scheduled examination will forfeit the examination fee.

(c) [ (e) ] Cheating on an examination is grounds for denial, suspension, or revocation of a license and/or an administrative penalty.

(d) [ (f) ] An applicant who has passed an exam for a particular class and endorsement and is [ has been ] licensed or is eligible for licensure in that class and endorsement, may not retake that examination.

§75.22. General License Provisions [ Licensing Requirements--General ].

[ (a) An air conditioning and refrigeration contracting company shall not use a license number that is not assigned to that company.]

(a) [ (b) ] The term of an [ All ] air conditioning and refrigeration contractor's license is [ licenses expire ] one year [ after the date issued, renewed, or reissued ].

(b) [ (c) ] A license [ number ] is not transferable.

(1) License numbers shall have the following form: Title/Class/Number/Endorsement code-TACL/A/000000/C.

(2) Endorsement codes are as follows:

(A) Environmental Air Conditioning-E;

(B) Commercial Refrigeration & Process Cooling and Heating-R;

(C) Combined Endorsements-C.

[ (d) Endorsement Codes are as follows: Environmental Air Conditioning-E; Commercial Refrigeration & Process Cooling and Heating-R; Combined Endorsements-C. License numbers shall have the following form: Title/Class/Number/Endorsement code-TACL/A/000000/C.]

(c) [ (e) ] A holder of a Class B license with the proper endorsement may perform air conditioning and refrigeration work in [ design, install, construct, maintain, service, repair, alter, or modify individual units of 25 tons or less of cooling capacity or 1.5 million Btu/h or less of heating capacity. In ] a building or a complex of buildings having more than one air conditioning or heating unit . The [ , the ] combined cooling capacity of the units may exceed 25 tons and heating capacity may exceed 1.5 million Btu/h, as long as each complete individual unit does not exceed the capacities stated above.

(d) [ (f) ] Any contractor who has a Class B license with one or combined [ two ] endorsements may upgrade an endorsement(s) [ either endorsement ] by passing the Class A examination for that endorsement.

(e) [ (g) ] A contractor who has [ wishes to have ] endorsements of different classes will be issued [ must have ] a separate license number for each endorsement. The licenses will [ not ] have concurrent expiration dates and will be printed on a single document. [ unless both are issued on the same date. ]

(f) [ (h) ] A contractor may have only one endorsement per license when he has two licenses. Both licenses must have the same business affiliation and permanent and business addresses.

(g) [ (i) ] The insurance requirement for separate licenses can be met with a single policy with limits at least as high as those required for a Class A license. A waiver of insurance for one license automatically applies to both licenses.

(h) [ (j) ] Any violation of the law or the rules and regulations resulting in disciplinary action for one license may result in disciplinary action for the other license.

[ (k) Altering a license in any way is prohibited and is grounds for a sanction and/or penalty.]

[ (l) If a licensee contracts with a general contractor or a home warranty company to provide installation or service that requires a license under the Act, the licensee remains responsible for the proper installation, service, and mechanical integrity of that work.]

[ (m) The wallet card is the actual license and will include, but is not limited to, the licensee's name, business name and address, license number, endorsements, and effective revision (if any) and expiration dates of the license. A wall certificate will be issued to a new licensee.]

§75.23.Licensing Requirements--Temporary Licenses.

(a) - (b) (No change.)

(c) The request for a temporary license must:

(1) be made within thirty [ ten business ] days from the date the license holder became unavailable;

(2) - (5) (No change.)

(d) (No change.)

(e) A temporary license number assigned by the Department must be shown on company vehicles, and must appear on invoices and proposals. The number may be taped to vehicles or applied by any other temporary methods [ method ]. The temporary license shall be numbered by the Department as follows: Title/Class/Number/Endorsement code/Temporary Designation.

[ (f) The Executive Director may waive any provision under this section and issue a temporary license for just cause.]

§75.24.Licensing Requirements--Renewal.

(a) A renewal application [ request ] must contain:

(1) (No change.)

(2) the name, physical address and telephone number of the business with which the licensee is affiliated , if any ;

(3) (No change.)

(4) evidence of compliance with the applicable insurance requirement on a form acceptable to [ provided by ] the Department or a request for a waiver of insurance, if applicable.

(b) A licensee shall not perform work requiring a license under the Act with an expired license or a license that has been denied renewal , except as allowed by the Administrative Procedure Act .

§75.26. Sale and Use of Refrigerants-- Certificate of Registration.

(a) Persons exempt under Texas Occupations Code, Chapter 1302, Subchapter B, §1302.054 and §1302.056 who purchase refrigerants and equipment containing refrigerants shall first request a Certificate of Registration on an application form provided by the Department. The Certificate of Registration application fee shall accompany the application.

(b) Registrants [ Persons ] who purchase refrigerants or equipment containing refrigerants shall, at the time of purchasing such items, provide to the seller a picture identification along with the Certificate of Registration.

(c) (No change.)

(d) A Certificate of Registration is invalid if the exempt person ceases to be employed pursuant to § [ as defined under Section ] 1302.054 and § [ Section ] 1302.056 of the Act.

(e) - (f) (No change.)

(g) Equipment that is classified as a small appliance under 40 C.F.R. Section 82.152 as amended containing a half-ounce or less of refrigerant may be purchased without a license or a Certificate of Registration.

[ (h) Obtaining a Certificate of Registration by fraud or false representation is grounds for an administrative sanction and/or penalty.]

§75.30.Exemptions.

(a) Licensure requirements under the Act and these Rules do not apply to:

(1) - (3) (No change.)

[ (4) a person who performs air conditioning contracting on unducted fireplace stoves;]

(4) [ (5) ] persons who perform air conditioning contracting on ducted or unducted environment air conditioning equipment of three tons or less on non-commercial boats; and

(5) [ (6) ] persons who install, repair, or remove a vent hood of the type commonly used in residential and commercial kitchens, as long as the person does not install, repair or remove any other part of the exhaust system.

(b) (No change.)

§75.40.Insurance Requirements.

(a) - (b) (No change.)

(c) Insurance must be obtained from an insurance provider authorized to sell liability insurance in Texas pursuant to [ admitted company or an eligible surplus lines carrier, as defined in Chapter 255 of ] the Texas Insurance Code [ or other insurance companies that are rated by A.M. Best Company as B+ or higher ].

(d) A license applicant or licensee shall file with the Department a completed certificate of insurance or other evidence satisfactory to the Department when applying for an initial license, changing a business name or affiliation, and upon request of the Department.

(e) (No change.)

(f) A licensee who has received a waiver of insurance shall not perform or offer to perform air conditioning and refrigeration contracting under his [ or her ] license with the general public [ unless exempted under Subchapter B of the Act ].

(g) (No change.)

[ (h) Failure to maintain insurance or failure to provide a certificate of insurance when requested is grounds for administrative penalties and license sanctions.]

§75.65.Advisory Board.

(a) The purpose of the Air Conditioning and Refrigeration Contractors Advisory Board is to advise the Commission [ Executive Director ] on adopting rules, enforcing and administering the Act, and setting fees.

[ (b) Recommendations of the Board will be transmitted to the Executive Director through the General Counsel.]

[ (c) Board meetings are called by the chair. Meetings in excess of one every six months may be authorized by the Executive Director.]

(b) [ (d) ] Expense reimbursements [ Expenses reimbursed ] to board members :

(1) are [ is ] limited to authorized expenses incurred while traveling to and from board meetings ; and [ . ]

(2) [ (e) ] [ Expenses paid to board members ] shall be limited to those allowed by the State of Texas Travel Allowance Guide, the Texas Department of Licensing and Regulation policies governing employee travel allowances, and the General Appropriations Act.

(c) [ (f) ] Expenses can be reimbursed to board members only when the legislature has specifically appropriated money for that purpose, and only to the extent of the appropriation.

§75.70.Responsibilities of the Licensee [ and the Air Conditioning and Refrigeration Contracting Company ].

(a) The licensee shall:

(1) if affiliated with an air conditioning and refrigeration contracting company [ a business ], assign his [ or her ] license to one company or one permanent office of the company that will use the license;

(2) if affiliated with an air conditioning and refrigeration contracting company, be an [ a bona fide ] employee or owner of the air conditioning and refrigeration contracting company and must work full time at the company or permanent office of the company;

(3) (No change.)

(4) furnish the Department with his [ or her ] permanent mailing address and the name, physical address, and telephone number of the air conditioning and refrigeration contracting company through which the licensee provides services ;

[ (5) furnish to the Department copies of assumed name registrations from the Secretary of State and/or County Clerk's office;]

(5) [ (6) ] verify that all work for which he [ or she ] has supervisory responsibility is performed so that mechanical integrity of installed products, system or equipment is maintained, and that all maintenance, service, and repair work has been done properly; and

(6) if affiliated with an air conditioning and refrigeration contracting company,

[ (7) ] furnish to municipalities a list of authorized agents that may pull permits under the license, and, if subcontracting jobs to other licensed air conditioning and refrigeration contracting companies, furnish a list of agents of those licensed companies that may pull permits under his license.

[ (b) An Air Conditioning and Refrigeration Contracting Company shall:]

[ (1) notify the Department of all licensees who have assigned their licenses to the company, and shall notify the Department within ten business days when any licensee whose license is assigned to the company has left their employ;]

[ (2) furnish to the Department copies of assumed name registrations from the Secretary of State and/or County Clerk's office;]

[ (3) maintain records on their license holder showing payroll taxes deducted and reported to the Texas Workforce Commission, and either, hours worked each day or documentation showing that the licensee is on salary and works full time for the contracting company;]

[ (4) furnish a copy of the company's records, specified in paragraph (3) of this subsection, at the request of the Department;]

[ (5) furnish to municipalities a list of authorized agents that may pull permits under the license of its license holder, and, if subcontracting jobs to other licensed air conditioning and refrigeration contracting companies, furnish a list of agents of those licensed companies that may pull permits under the license of its license holder; and]

[ (6) make available to the department in Austin, Texas the records relating to the business of the air conditioning and refrigeration contracting company conducted through a permanent office for a period of at least three years after completion of a job.]

[ (c) A person or an air conditioning and refrigeration contracting company that performs air conditioning and refrigeration contracting shall: ]

(7) [ (1) ] provide proper installation and [ , ] service, and assure the mechanical integrity of work and installations performed or supervised by the licensee;

(8) [ (2) ] not misrepresent the need for services, services to be provided, or services that have been provided; and

(9) [ (3) ] not make a fraudulent promise or false statement to influence, persuade, or induce an individual or a company to contract for services.

(10) not knowingly provide air conditioning and refrigeration work for or on behalf of an air conditioning and refrigeration contracting company that does not fully comply with the requirements of Occupations Code, Chapter 1302, and with these rules.

(b) [ (d) ] A licensee may subcontract portions of work requiring a license under the Act to unlicensed persons, firms, or corporations as long as:

(1) the licensee actively provides work or service which requires a license, either in person or with the licensee's [ bona fide ] employees;

(2) the work or service provided in person or with the licensee's [ bona fide ] employees consists of more than accepting a contract or request for service, scheduling the work, and providing supervision of the work; and

(3) the licensee is ultimately responsible to the customer for all work performed by the subcontractor.

(c) [ (e) ] The design of a system may not be subcontracted to an unlicensed person, firm or corporation.

(d) [ (f) ] A licensee who subcontracts to perform work requiring a license under the Act for an air conditioning and refrigeration contracting company is responsible to the company and the department for the mechanical integrity of all work performed by the subcontractor.

[ (g) Each air conditioning and refrigeration contracting company shall have a licensee employed full time in each permanent office from which work requiring a license under the Act is contracted and supervised. All work requiring a license under the Act shall be under the direct supervision of the licensee for that office.]

(e) [ (h) ] The licensee is responsible [ under the Act ] for all work performed under his [ his/her ] supervision, regardless of whether [ or not ] the owners, officers, or managers of the air conditioning and refrigeration contracting company allow the licensee the authority to supervise, train, or otherwise control compliance with the Act.

[ (i) If an air conditioning and refrigeration contracting company uses locations other than a permanent office, those locations shall be used only to receive instructions from the permanent office on scheduling of work, to store parts and supplies, and/or to park vehicles. These locations may not be used to contract air conditioning sales or service. The air conditioning and refrigeration contracting company shall provide the address of these other locations to the Department no later than 30 days after the locations are established or changed.]

(f) [ (j) ] A licensee shall [ may ] not allow another individual [ permit a person or any company with which his or her license is not affiliated, and by whom he or she is not employed, or contracted with ] to use his [ or her ] license for any purpose.

(g) A licensee shall not allow any air conditioning and refrigeration contracting company with which he has no business affiliation to use his license for any purpose, except as otherwise allowed by these rules.

[ (k) Each licensee and air conditioning and refrigeration contracting company shall display the license number and company name in letters not less than two inches high on both sides of all vehicles used in conjunction with air conditioning and refrigeration contracting. When an unlicensed subcontractor is at a job site not identified by a marked vehicle, the site shall be identified either by a temporary sign on the subcontractor's vehicle or on a sign visible and readable from the nearest public street containing the contractor's license number and company name.]

[ (l) All advertising by licensees and air conditioning and refrigeration contracting companies designed to solicit air conditioning or refrigeration business shall include the licensee's license number. The following advertising does not require the license number:]

[ (1) nationally placed television advertising, in which a statement indicating that license numbers are available upon request is used in lieu of the licensee's license number;]

[ (2) telephone book listings that contain only the name, address, and telephone number;]

[ (3) manufacturers' and distributor's telephone book trade ads endorsing an air conditioning and refrigeration contractor;]

[ (4) telephone solicitations, provided the solicitor states that the company is licensed by the state. The license number must be provided upon request of a consumer.]

[ (5) promotional items of nominal value such as ball caps, tee shirts, and other gifts;]

[ (6) letterheads and printed forms for office use; and]

[ (7) signs located on the contractor's permanent business location.]

[ (m) An invoice shall be provided to the consumer for all work performed. The company name, address, and phone number shall appear on all proposals and invoices. The licensee's license number shall appear on all proposals and invoices for that office. The following information: ''Regulated by The Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599'' shall be listed on:]

[ (1) proposals and invoices;]

[ (2) written contracts; and]

[ (3) a sign prominently displayed in the place of business if the consumer or service recipient may visit the place of business for service.]

[ (n) A licensee or an air conditioning and refrigeration contracting company that also acts as a general contractor may provide a one-time notice stating the information above to customers for whom they provide services requiring a license under the Act.]

(h) [ (o) ] A licensee shall:

(1) notify the Department, in writing, within thirty [ ten ] days of any change in permanent mailing address, company location, company telephone number or change in assignment of license; and

[ (2) if the information is printed on the license:]

[ (A) destroy the current original license;]

[ (B) pay the appropriate revision fee required in §75.80; and]

(2) [ (C) ] provide a revised insurance certificate to the Department within thirty [ ten ] days of a change in the name [ or address ] of the company to which the license is assigned.

[ (p) The permanent address shall be considered the licensee's permanent mailing address and address of record. All correspondence from the Department will be mailed to that address.]

(i) Failure to maintain insurance or failure to provide a certificate of insurance when requested is grounds for imposition of administrative penalties and/or sanctions.

(j) Altering a license in any way is prohibited and is grounds for imposition of administrative penalties and/or sanctions.

§75.71.Responsibilities of the Air Conditioning and Refrigeration Contracting Company.

(a) An Air Conditioning and Refrigeration Contracting Company shall:

(1) notify the Department of all licensees who have assigned their licenses to the company, and shall notify the Department within thirty business days when any licensee whose license is assigned to the company has left its employ;

(2) furnish to the Department copies of applicable assumed name registrations from the Secretary of State and/or County Clerks' office;

(3) maintain records on its license holder showing payroll taxes deducted and reported to the Texas Workforce Commission, and either, hours worked each day or documentation showing that the licensee is on salary and works full time for the contracting company;

(4) furnish a copy of the company's records, specified in paragraph (3) of this subsection, at the request of the Department;

(5) furnish to municipalities a list of authorized agents that may pull permits under the license of its license holder, and, if subcontracting jobs to other licensed air conditioning and refrigeration contracting companies, furnish a list of agents of those licensed companies that may pull permits under the license of its license holder; and

(6) make available to the Department in Austin, Texas the records relating to the business of the air conditioning and refrigeration contracting company conducted through a permanent office for a period of at least three years after completion of a job.

(b) A person or an air conditioning and refrigeration contracting company that performs air conditioning and refrigeration contracting shall:

(1) provide proper installation and service, and assure the mechanical integrity of all work and installations;

(2) not misrepresent the need for services, services to be provided, or services that have been provided; and

(3) not make a fraudulent promise or false statement to influence, persuade, or induce an individual or a company to contract for services.

(c) A contracting company may subcontract portions of work requiring a license to unlicensed persons, firms, or corporations as long as:

(1) the contracting company's employees, working under the supervision of the contracting company's assigned licensee actively provides work or service;

(2) the work or service provided by the employees consists of more than accepting a contract or request for service, scheduling the work, and providing supervision of the work; and

(3) the assigned licensee is ultimately responsible to the customer for all work performed by the subcontractor.

(d) The design of a system shall not be subcontracted to an unlicensed person, firm or corporation.

(e) Each air conditioning and refrigeration contracting company shall have a licensee employed full time for each permanent office. All work requiring a license shall be under the direct supervision of the licensee for that office.

(f) If an air conditioning and refrigeration contracting company uses locations other than a permanent office, those locations shall be used only for air conditioning and refrigeration workers to receive instructions from the permanent office on scheduling of work, to store parts and supplies, and/or to park vehicles. These locations may not be used to contract air conditioning sales or service.

(g) Each air conditioning and refrigeration contracting company shall display the license number of its affiliated licensee and company name in letters not less than two inches high on both sides of all vehicles used in conjunction with air conditioning and refrigeration contracting. When an unlicensed subcontractor is at a job site not identified by a marked vehicle, the site shall be identified either by a temporary sign on the subcontractor's vehicle or on a sign visible and readable from the nearest public street containing the contractor's affiliated license number and company name.

(h) All advertising by air conditioning and refrigeration contracting companies designed to solicit air conditioning or refrigeration business shall include the affiliated licensee's license number. The following advertising does not require the license number:

(1) nationally placed television advertising, in which a statement indicating that license numbers are available upon request is used in lieu of the licensee's license number;

(2) telephone book listings that contain only the name, address, and telephone number;

(3) manufacturers' and distributor's telephone book trade ads endorsing an air conditioning and refrigeration contractor;

(4) telephone solicitations, provided the solicitor states that the company complies with licensing requirements of the state. The affiliated licenssee's number must be provided upon request;

(5) promotional items of nominal value such as ball caps, tee shirts, and other gifts;

(6) letterheads and printed forms for office use; and

(7) signs located on the contractor's permanent business location.

(i) An invoice shall be provided to the consumer for all air conditioning and refrigeration work performed. The company name, address, and phone number shall appear on all proposals and invoices. The affiliated licensee's number shall appear on all proposals and invoices for air conditioning and refrigeration work. The following information: ''Regulated by The Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599'' shall be listed on:

(1) proposals and invoices;

(2) written contracts; and

(3) a sign prominently displayed in the place of business if the consumer or service recipient may visit the place of business for service.

(j) An air conditioning and refrigeration contracting company shall not use a license that is not assigned to that company.

§75.80.Fees.

(a) Non-refundable license application fee is $130 [ $50 ].

(b) (No change.)

(c) Renewal application [ License fees are: ]

[ (1) initial license is $80 and]

[ (2) ] [ renewal ] fee is $80.

(d) (No change.)

(e) An [ The addition of an ] endorsement to an existing license is $25. [ This fee may be waived if the reprint coincides with a renewal or revision, for which required fees are paid. ]

(f) Certificate of Registration application fee is $25.

(g) (No change.)

§75.90.Sanctions--Administrative Sanctions/Penalties.

A person or entity that violates Texas Occupations Code Chapter 1302, or a rule, or order of the Executive Director or Commission relating to the Act, shall be subject to the imposition of administrative sanctions and/or administrative penalties in accordance with the Act or the Texas Occupations Code, Chapter 51 and 16 Texas Administrative Code, Chapter 60 of this title (relating to the Texas Commission [ Department ] of Licensing and Regulation).

§75.100.Technical Requirements.

(a) Electrical Connections.

(1) (No change.)

(2) Licensees may replace and reconnect environmental air conditioning, commercial refrigeration, process cooling or heating systems, or component parts of the same or lesser amperage. On replacement environmental air conditioning, commercial refrigeration, process cooling or heating systems where the electrical disconnect has not been installed and is required by the applicable [ current ] National Electrical Code, the licensee may install a disconnect [ directly adjacent to or on the replacement system ] and reconnect the system.

(3) (No change.)

(4) All electrical work shall be performed in accordance with standards at least as strict as that established by the applicable [ current ] National Electrical Code.

(b) - (c) (No change.)

(d) Process Cooling and Heating.

(1) (No change.)

(2) Process cooling and heating work is limited to work performed on piping and equipment in the primary closed loop portions of processing systems containing a primary process medium. Once a primary closed loop process system has been deactivated and rendered inert, a non-licensed person may perform repairs on piping, heat exchangers, and vessels.

(e) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 27, 2006.

TRD-200601823

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: May 7, 2006

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


Chapter 83. COSMETOLOGISTS

16 TAC §§83.10, 83.20 - 83.23, 83.25, 83.26, 83.31, 83.40, 83.50, 83.51, 83.53, 83.70 - 83.74, 83.80, 83.100 - 83.102, 83.104, 83.106 - 83.108, 83.114, 83.120

The Texas Department of Licensing and Regulation ("Department") proposes amendments to existing rules at 16 Texas Administrative Code, Chapter 83, §§83.10, 83.20 - 83.23, 83.25, 83.26, 83.31, 83.40, 83.50, 83.51, 83.53, 83.70 - 83.73, 83.80, 83.100 - 83.102, 83.104, 83.106 - 83.108, 83.114, and 83.120, and proposes new §83.74, regarding the licensing and regulation of cosmetology.

An amendment to §83.10 adds a definition for "hair weaver or braider" to clarify the scope of practice of a hair weaver or braider and renumbers the section accordingly.

An amendment to §83.20, subsection (a), relating to individual licensing and the hair weaving and braiding specialty certificate, deletes the examination requirement to obtain a hair weaving/braiding specialty certificate, reduces the number of hours of the hair weaving/braiding curriculum to 80 hours, and reduces the number of weeks to complete a hair weaving/braiding curriculum to not less than two weeks. The subsection is reorganized and renumbered to reflect this change. The department received numerous public and licensee comments that the hair weaving and braiding curriculum and examination unsatisfactorily meet the rational ends of teaching and testing hair weaving and braiding skills to ensure a safe and competent hair weaver or braider for consumers. Also, an amendment to subsection (a)(5) corrects a typographical error to change "persons" to "person's."

An amendment to §83.20, relating to the shampoo apprentice permit, relocates the fee language stated in subsection (c)(3) to §83.80, "Fees," to locate all cosmetology fees in one section for efficiency. There is no substantive change; the shampoo apprentice permit will continue to be "no charge." An amendment to subsection (c)(4) deletes the statement that curriculum is not required to obtain a shampoo apprentice permit. This amendment is duplicative of statutory language and is not a statement appropriately located in §83.20, "License Requirements--Individuals," as it does not impose a license requirement. An amendment to subsection (c)(5) deletes the statement that credit cannot be earned at a school for time spent while holding a shampoo apprentice permit. This language is superfluous, as no person may earn credit at a cosmetology school unless authorized in §83.120, "Curriculum."

An amendment to §83.20(d), relating to the student permit, deletes the requirement under subsection (d)(1) for a student permit applicant to obtain a law and rules book. This statement is redundant, as every student permit applicant fee includes the law and rules book, as stated in existing §83.80, "Fees."

An amendment to §83.20(e), relating to students who enroll in the instructor curriculum, deletes provisions relating to a student's eligibility to obtain a permit. The eligibility requirements to become a student in a cosmetology course are stated in Occupations Code, §1602.266(b) and are re-stated in existing rule §83.20(d). Subsection (e) erroneously states license requirements, as prescribed by Occupations Code, §1602.255. The remainder of the section is renumbered accordingly.

An amendment to §83.21(h), relating to examinations, adds a requirement that the department may require parental approval for examination models under the age of 18. Examination models may be required to sign a confidentiality agreement for the purposes of examination security.

An amendment to §83.22, relating to the license requirements for beauty salons and booth rentals, adds "specialty salons" for clarification throughout the section. The section is also reorganized and renumbered accordingly to delete duplicating statements within the section for better readability.

An amendment to §83.23, relating to the license requirements for beauty culture schools, clarifies the requirement under Occupations Code, §1602.303 that only private beauty culture school license applicants must submit a current financial statement in order for the department to assess a private school applicant's financial soundness. The section is renumbered accordingly.

An amendment to §83.25, relating to continuing education, clarifies the date for the calculation of course record fees. The calculation is proposed to be from the date courses are completed, as opposed to the date course completions are submitted to the department.

An amendment to §83.26, relating to license renewals, makes a change to the section title to conform with other chapter 83 section titles, and will state without substantive change, "License Requirements--Renewals." Subsection (e) adds a requirement that student permits may be renewed by completing a department-approved form prior to the expiration date of the student permit, without further requirement. This rule is concurrently proposed with §83.31, to add a two-year license term to student permits.

An amendment to §83.31, relating to license terms, amends subsections (b) and (d) to add a term of two years to student permits for the department's efficiency in calculating the number of active students in beauty culture schools for legislative reporting. A student permit may be renewed in accordance with concurrently proposed §83.26 and §83.80.

An amendment to §83.40(e), relating to the Private Beauty Culture School Tuition Protection Account, clarifies, with no substantive change, that a fee collected for the Private Beauty Culture School Protection Account is only at a time prescribed under existing rule §83.40(b). There is no substantive change to this section.

An amendment to §83.50, relating to inspections of cosmetology establishments, clarifies that except for initial inspections, the department may conduct inspections under the Act and this chapter without advance notice. Pursuant to Occupations Code, §1603.104, the department may enter and inspect at any time during business hours; however, existing rule §83.51 provides for efficiency in conducting initial inspections by providing advance notice because an establishment without an initial inspection should not be open for business.

An amendment to §83.51, relating to initial inspections, clarifies that this section applies only to initial inspections by adding the word "initial" throughout the section. There are no substantive changes.

An amendment to §83.53, relating to risk-based inspections, deletes the words, "In order to," under subsection (a) for grammatical purposes. There is no substantive change.

An amendment to §83.70, relating to the responsibilities of individuals, deletes the requirement in subsection (e) that the last inspection report be posted at each licensee's work station. Only establishments are inspected and there is only one proof of inspection, which will contain all violations noted in the establishment, including violations of individual licensees employed by the establishment. A rule is concurrently proposed in §83.71 to require salons to display, in public view, the most recent proof of inspection. This amendment deletes the duplicate requirement.

Amendments to §83.71, relating to the responsibilities of beauty salons, clarifies the title to indicate the section has provisions relating to beauty salons, specialty salons, and booth rental licensees. Subsection (f) is amended to clarify that the existing equipment requirements are for licensees present and providing cosmetology services. Subsection (i) is deleted because it duplicates the requirement in §83.70(e). Subsection (k) adds a requirement that cosmetology establishments display in the establishment, in a conspicuous place clearly visible to the public, a copy of the establishment's most recent inspection report issued by the department.

An amendment to §83.72, responsibilities of beauty culture schools, corrects the word "curriculum" to the plural form, "curricula," throughout the section where the plural form is appropriate.

An amendment to §83.72 adds a new subsection (e) to provide a definition for the term "student-instructor," as there is no separate license titled a "student-instructor." A student-instructor is a student permit holder who is enrolled in an instructor curriculum. The section is renumbered accordingly.

An amendment to §83.72(f) creates a requirement that schools display student permits in an album or binder in alphabetical order by last name, then alphabetical order by first name, and finally, if more than one student has the same name, by numerical order of the student permit numbers.

An amendment to §83.72(g)(1) relocates the requirement for schools to maintain attendance records to concurrently proposed new subsection (k).

An amendment to §83.72(g)(2) deletes the requirement that schools submit copies of time clock failure records to the department; however, concurrently proposed subsection (k) will require the school to maintain these records at the school.

An amendment to §83.72(g)(3) relocates the requirement that schools maintain records of a student's hours for the department's inspection to concurrently proposed subsection (k).

An amendment to §83.72(g)(4) relocates the provisions relating to a student's ability to review accrued hours and the department's authority to inspect a school's documents relating to the accrual of student hours to concurrently proposed subsection (k). Also, an amendment to this subsection deletes the requirement for a school to submit copies of hour reports to department inspectors because the department will have an electronic record of student hours in accordance with concurrently proposed subsection (l).

An amendment to §83.72(g)(5) relocates the provision relating to who may prepare hour reports and supporting documents to concurrently proposed subsection (j). An addition to this provision, to reflect concurrently proposed rules relating to electronic reporting, states that only school owners and school owner designees, including licensed instructors, are allowed to electronically submit information to the department.

An amendment to §83.72(g)(6) relocates, without change, the provision to concurrently proposed subsection (k).

An amendment to §83.72(h) deletes the provision relating to field trips because the language is duplicative, more narrow, and possibly confusing when compared to the existing field trip requirements that are more fully stated in §83.120(d).

An amendment to §83.72(k) deletes regulation of refresher courses. Beauty culture schools are authorized to offer courses only as prescribed under Texas Occupations Code, Chapters 1602 and 1603 and §83.120, "Curriculum," of this chapter.

An amendment to §83.72(l) relocates the provision to concurrently proposed subsection (n) and adds a requirement of electronic reporting.

An amendment to §83.72(m) relocates the existing provision under that subsection to concurrently proposed subsection (l) and adds a requirement of electronic reporting.

An amendment subsection (p), relating to the posted time clock sign, relocates existing language to new subsection (i), with one change: language is added to new subsection (i)(2) to allow flexibility for writing in student hours in situations that are approved by the department.

Proposed new section §83.72, subsection (m), adds a requirement that a school electronically notify the department when a student withdraws or is terminated and requires a school to withdraw or terminate a student who does not attend school for more than 60 days, unless the student is on a documented leave of absence.

Amendments to §83.73 relocate subsections (c) and (d), relating to transfer students and student withdrawals, to concurrently proposed §83.74, Responsibilities--Withdrawal, Termination, Transfer, School Closure. A change in the language of subsection (c)(3) is made to reflect concurrently proposed electronic reporting rules under §83.72. A change to the language of subsection (d)(6)(A) is made pursuant to Occupations Code, §1602.455, which does not limit transfer students from private schools only.

Proposed new §83.74, "Responsibilities--Withdrawal, Termination, Transfer, School Closure," proposes rules relating to student withdrawal, termination, transfer, and school closures. Primarily, this section restates the requirements of existing §83.73(c) and (d), concurrently proposed for deletion. Many of the requirements are simultaneous rights and responsibilities for both student and school licensees, and are more readable when stated in one section, as opposed to responsibilities of either students or schools.

An amendment to §83.80(b)(7) adds a rule to state that a student permit is no charge and renumbers the section accordingly. An amendment to subsection (d) clarifies, with no substantive change, that (1) there is no charge to obtain an inactive status for a license, (2) the renewal fee of a license on inactive status is in accordance with the renewal fees stated in §83.80(b); and (3) the fee to activate a license is $25 (no change). An amendment is also made to existing subsections (a)(12) and (b)(11) to clarify that the application and renewal fees under those subsections are for both beauty salons and specialty salons. The section is renumbered in accordance with the proposed changes.

An amendment to §83.100(1) and (5) deletes the word "hard" before non-porous.

An amendment to §83.100(4)(B) deletes the statement referring to a type of chlorine bleach solution. The new language will more refer to all types and state "a chlorine bleach solution used in accordance with this chapter."

An amendment to §83.101(b)(2) deletes the single reference to a single type of chlorine bleach because there are three different types of chlorine bleach solutions.

An amendment to §83.102(c) clarifies the statement that chairs do not need to be disinfected prior to use for each client, except as provided in the chapter.

An amendment to §83.102(k) clarifies that towels must be cleaned with hot water and chlorine bleach.

An amendment to §83.104 adds a requirement that facial chairs must be cleaned and disinfected prior to each client service.

An amendment to §83.106(d), clarifies that under Occupations Code, §1602.408 and §1603.352 and §83.106(c) of this chapter, non-disposable instruments used in manicure and pedicure nail services must be sterilized. An amendment also changes the phrase "electric file bits" to "electric drill bits" to conform the language to existing §83.107, relating to electric drill bits.

An amendment to §83.107 clarifies that electric drill bits must be cleaned, disinfected, and sterilized. Under Occupations Code, §1602.408 and §1603.352 and §83.106 of this chapter, non-disposable instruments used in manicure and pedicure nail services must be sterilized.

An amendment to §83.108 adds a requirement that whirlpool foot spa chairs must be cleaned and disinfected prior to each client service.

An amendment to §83.114(b) clarifies that unless as required in that subsection, carpet is permitted in all other areas. An amendment to subsection (e) clarifies that only "chemical" supplies cannot be stored in a restroom.

An amendment to §83.120, throughout the section, corrects a clerical error to state "curricula" as plural, instead of "curriculum," which is singular.

An amendment to §83.120(a) deletes the reference to "Adult Education Programs," to more accurately state the licenses issued by the department for private and public post-secondary cosmetology schools. An amendment also changes the word program to plural for grammatical correction in referring to the 1,000 hour programs. The practical applications of the operator curricula are relocated to subsection (a) for clarification. The title of the practical applications is changed to clarify that those applications are for students enrolled in an operator curricula.

An amendment to §83.120(b), relating to specialist curricula, modifies the hair weaving and braiding curriculum by updating the content to reflect modern descriptions of hair weaving and braiding skills and to update both the ''law and rules" and ''health and safety" course content and references. The course content is also updated to reflect necessary skills in the following areas: 50% of the curriculum for technical skills ("Hair Weaving and Braiding"), 20% of the curriculum for ''Health and Safety," 10% for "Hair Analysis and Scalp Care," 10% for "Shampooing and Conditioning," 6% for Law and Rules, and 4% for "Professional Practices." The curriculum content in its entirety is reorganized and reformatted for better readability for students, schools, and instructors. Further, the proposed amendment reduces the total hair weaving and braiding course hours to 80 hours. The department received numerous public and licensee comments that the existing curriculum is excessive regulation in that the existing 300 hours are unnecessary to meet the rational end of teaching weaving and braiding skills to ensure a safe and competent hair weaver or braider for consumers.

An amendment to §83.120(c), relating to instructor curricula, re-states the title of "student-instructor" curriculum as the "instructor" curriculum for clarification.

An amendment to §83.120(d), relating to practical applications of the curriculum, relocates this section to be more proximately located with the operator curricula. The title of the practical applications is changed to clarify that those applications are for students enrolled in an operator curricula.

An amendment to §83.120(d)(2)(E) re-states the reference of the "student-instructor" course as "instructor" course, in accordance with concurrently proposed amendments to §83.102(c).

An amendment to §83.120(d)(7) deletes this provision, as the maintenance of field trip records is included in concurrently proposed §83.72(k).

An amendment to §83.120 adds a provision that the changes to §83.120 are effective on September 1, 2006.

William H. Kuntz, Jr., Executive Director, has determined that for the first five-year period the proposed amendments and new rule are in effect there will be no cost to state government and no cost to local government as a result of enforcing or administering the proposed rules. Although there will be a cost to the department to develop electronic school reporting, the department anticipates that the cost will be absorbed by current personnel and computer resources, especially in anticipation of future saved personnel costs. Additionally, although there will be a minimal cost to the department to issue student permit renewals without charging a renewal fee, the department anticipates a small volume of students who will study a cosmetology curriculum in excess of the proposed 2-year student permit term.

Mr. Kuntz also has determined that for each year of the first five-year period the proposed amendments and new rule are in effect, the public benefit will be rational regulation of hair weaving and braiding licensees, effective health and safety rules, efficient department operations with electronic reporting, and rules that are easier to read.

Mr. Kuntz has determined that there will be minimal economic cost to individual licensees and/or small or micro-business. Licensees required to comply with electronic reporting may report by an alternate method approved by the department if compliance with the proposed rules causes a licensee substantial hardship.

Comments on the proposal may be submitted to Caroline Jackson, Legal Assistant, General Counsel's Office, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or facsimile (512) 475-3032, or electronically: caroline.jackson@license.state.tx.us. The deadline for comments is 30 days after publication in the Texas Register .

The amendments and new rule are proposed under Texas Occupations Code, Chapters 51, 1602, and 1603, which authorizes the Department to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposal are those set forth in Texas Occupations Code, Chapters 51, 1602, and 1603. No other statutes, articles, or codes are affected by the proposal.

§83.10.Definitions.

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

(1) - (8) (No change.)

(9) Hair weaver or braider--A person authorized by the department to arrange, dress, twist, wrap, weave, add extensions, lock or braid hair by either hand or mechanical appliances. Such practice shall not include shampooing, conditioning, drying, styling, cutting, or trimming hair except to the extent such activity is incidental to a hair weaving or braiding service. Such practice shall not include the application of color chemicals, relaxers, perm solutions, or other preparations to alter the color or to straighten, curl, or alter the structure of hair.

(10) [ (9) ] Instructor--An individual authorized by the department to offer instruction in any act or practice of cosmetology under Texas Occupations Code, §1602.002.

(11) [ (10) ] Law and Rules Book--Texas Occupations Code, Chapters 1602 and 1603, and 16 Texas Administrative Code, Chapter 83.

(12) [ (11) ] License--A department issued permit, certificate, approval, registration, or other similar permission required by law.

(13) [ (12) ] License by reciprocity--A process that permits a cosmetology license holder from another jurisdiction or foreign country to obtain a Texas cosmetology license without repeating cosmetology education or examination license requirements.

(14) [ (13) ] Manicurist--A manicurist may perform only those services defined in Occupations Code §1602.002(10) and (11).

(15) [ (14) ] Operator--An individual authorized by the department to perform any act or practice of cosmetology under Texas Occupations Code, §1602.002.

(16) [ (15) ] Provisional license--A license that allows a person to practice cosmetology in Texas pending the department's approval or denial of that person's application for licensure by reciprocity.

(17) [ (16) ] Registered Examination Proctor--An individual authorized by the department to evaluate or grade a practical examination for the department for a license issued under Texas Occupations Code, Chapter 1602.

(18) [ (17) ] Shampoo Apprentice--A person authorized to perform the practice of cosmetology as defined in §1602.002(3), relating to shampooing and conditioning a person's hair.

(19) [ (18) ] Specialty Instructor--An individual authorized by the department to offer instruction in an act or practice of cosmetology limited to Texas Occupations Code, §1602.002(7), (9), and/or (10). Specialty instructors may only teach the subject matter in which they are licensed.

(20) [ (19) ] Specialty Salon--A cosmetology establishment in which only the practice of cosmetology as defined in Texas Occupations Code, §1602.002(2), (4), (7), (9), or (10) is performed. Specialty salons may only perform the act or practice of cosmetology in which the salon is licensed.

(21) [ (20) ] Wet disinfectant soaking container--A container with a cover to prevent contamination of the disinfectant solution and of a sufficient size such that the objects to be disinfected may be completely immersed in the disinfectant solution.

§83.20.License Requirements--Individuals.

(a) To be eligible for an operator license, facialist specialty license, manicurist specialty license, hair weaving/braiding specialty certificate, wig specialty certificate, or shampoo/conditioning specialty certificate, an applicant must:

[ (1) pass a written and practical examination required under §83.21;]

(1) [ (2) ] submit a completed application on a department-approved form;

(2) [ (3) ] pay the fee required under §83.80;

(3) [ (4) ] be at least 17 years of age;

(4) [ (5) ] have obtained a high school diploma, or the equivalent of a high school diploma, or have passed a valid examination administered by a certified testing agency that measures the person's [ persons ] ability to benefit from training; and

(5) [ (6) ] have completed the following hours of cosmetology curriculum in a beauty culture school:

(A) for an operator license, one of the following:

(i) 1500 hours of instruction in a beauty culture school; or

(ii) 1000 hours of instruction in beauty culture courses and 500 hours of related high school courses prescribed by the department in a vocational cosmetology program in a public school.

(B) for a facialist specialty license, 750 hours of instruction.

(C) for a manicurist specialty license, 600 hours of instruction.

(D) for a hair weaving/braiding specialty certificate, 80 [ 300 ] hours of instruction completed in not less than two [ eight ] weeks from date of enrollment.

(E) for a wig specialty certificate, 300 hours of instruction completed in not less than eight weeks from date of enrollment.

(F) for a shampoo/conditioning specialty certificate, 150 hours of instruction completed in not less than four weeks from date of enrollment ; and [ . ]

(6) for an operator license, facialist specialty license, manicurist specialty license, wig specialty certificate, or shampoo/conditioning specialty certificate, pass a written and practical examination required under §83.21. No examination is required for a hair weaving/braiding specialty certificate.

(b) (No change.)

(c) To be eligible for a shampoo apprentice permit, an applicant must:

(1) be at least 16 years of age; and

(2) submit a completed application on a department-approved form.

[ (3) An applicant is not required to pay a fee for a shampoo apprentice permit.]

[ (4) An applicant is not required to complete instruction at a cosmetology school as a prerequisite for the issuance of a shampoo apprentice permit.]

[ (5) An applicant may not earn credit hours at a beauty culture school as a result of time spent while holding a shampoo apprentice permit.]

(d) To be eligible for a student permit, an applicant must:

[ (1) obtain the current law and rules book;]

(1) [ (2) ] submit a completed application on a department-approved form; and

(2) [ (3) ] pay the fee required under §83.80.

[ (e) In addition to the requirements of subsection (d), to be eligible to be a student-instructor, an applicant must:]

[ (1) have completed the 12th grade or its equivalent; and]

[ (2) have one of the following:]

[ (A) for an instructor license, an active operator license;]

[ (B) for an manicure instructor specialty license, an active operator or manicure specialty license; or]

[ (C) for a facial instructor specialty license, an active operator or facialist specialty license.]

(e) [ (f) ] To be eligible for a registered examination proctor registration, an applicant must:

(1) have held an active instructor license for at least two of the five years preceding the application;

(2) hold an active instructor license;

(3) obtain a certificate of completion from a department-approved training course;

(4) submit a completed application on a department-approved form; and

(5) pay the applicable fee under §83.80.

(f) [ (g) ] A license application is valid for one year from the date it is filed with the department.

§83.21.License Requirements--Examinations.

(a) - (g) (No change.)

(h) Models used in an examination are required to be at least 16 years of age. The department may require parental approval for models under 18 years of age.

§83.22.License Requirements--Beauty Salons , Specialty Salons, and Booth Rentals (Independent Contractors).

(a) To be eligible for a beauty salon , specialty salon, or booth rental license, an applicant must:

(1) - (2) (No change.)

(3) submit a completed application on a department-approved form; [ and ]

(4) pay the fee required under §83.80 ; and [ . ]

(5) for a booth rental license, hold an active department-issued cosmetology license.

(b) A beauty salon or specialty salon applicants must be inspected and approved by the department prior to the operation of the beauty or specialty salon. To ensure timely inspection, an applicant should submit a completed application at least 45 days in advance of the anticipated opening date.

[ (c) To be eligible for a booth rental (independent contractor) license, an applicant must:]

[ (1) hold an active department-issued cosmetology license;]

[ (2) obtain the current law and rules book;]

[ (3) comply with the requirements of the Act or this chapter;]

[ (4) submit a completed application on a department-approved form; and]

[ (5) pay the fee required under §83.80.]

§83.23.License Requirements--Beauty Culture Schools.

(a) To be eligible for a beauty culture school license, an applicant must:

(1) - (2) (No change.)

(3) submit a completed application on a department-approved form; [ and ]

(4) one of the following:

(A) (No change.)

(B) for a public beauty culture school, pay the applicable inspection fee required under §83.80 ; and [ . ]

(5) for a private beauty culture school, provide a current financial statement prepared by a certified public accountant. If the financial statement is more than 180 days old, an applicant must also provide a supplemental financial statement within 180 days of the application.

[ (b) An applicant must provide a current financial statement prepared by a certified public accountant. If the financial statement is more than 180 days old, an applicant must also provide a supplemental financial statement dated to within 180 days of the application.]

(b) [ (c) ] A beauty culture school must be inspected and approved by the department prior to the operation of the school. To ensure timely inspection, an applicant should submit a completed application at least 45 days in advance of the anticipated opening date.

(c) [ (d) ] Private beauty culture schools must have and maintain the following:

(1) a floor plan of not less than 3,500 square feet that includes two separate areas, one area for instruction in theory and one area for clinic work, and separate restrooms for male and female;

(2) equipment established by the department sufficient to instruct a minimum of 50 students;

(3) proof of ownership of building or proof of a lease for the first 12 months of operation;

(4) current inspection report(s) of the fire marshal and building official approving or confirming compliance with applicable laws and ordinances; and

(5) a copy of the curriculum approved by the department for each course offered.

(d) [ (e) ] Public beauty culture schools must have and maintain the following:

(1) a detailed floor plan showing not less than 2,200 square feet that includes office, dispensary, locker room, classroom space, and at least 1,200 square feet of laboratory space;

(2) equipment required by the department;

(3) if off-campus facilities are utilized, proof of a lease for the first 12 months of operation;

(4) current inspection report(s) of the fire marshal and building official approving or confirming compliance with applicable laws and ordinances; and

(5) a copy of the curriculum approved by the department for each course offered.

§83.25.License Requirements--Continuing Education.

(a) - (i) (No change.)

(j) A provider shall pay to the department a continuing education record fee of $5 for each licensee who completes a course for continuing education credit. A provider's failure to pay the record fee for courses completed [ course completions submitted to the department ] on or after February 1, 2006 may result in disciplinary action against the provider, up to and including revocation of the provider's registration under Chapter 59 of this title.

§83.26. License [ Licensing ] Requirements--Renewals.

(a) - (d) (No change.)

(e) A student permit must be renewed prior to the expiration date of the student permit by submitting a completed application on a department-approved form.

§83.31.Licenses--License Terms.

(a) The following licenses have a term of two (2) years:

(1) - (9) (No change.)

(10) booth rental (independent contractor) license; [ and ]

(11) beauty and specialty salon license ; and [ . ]

(12) student permit.

(b) - (c) (No change.)

[(d) A student permit is valid for the student's duration in school until the student withdraws from school or takes an examination for licensure.]

§83.40.Private Beauty Culture School Tuition Protection Account.

(a) - (d) (No change.)

(e) In addition to any other fees, all new schools applying for a private beauty culture school license shall pay the prescribed fee to the account as determined under subsection (b) before a license will be issued.

(f) (No change.)

§83.50.Inspections--General.

(a) (No change.)

(b) Inspections shall be performed during the normal operating hours of the cosmetology establishments. Except for initial inspections, the department may conduct inspections under the Act and this chapter without advance notice.

(c) - (d) (No change.)

§83.51.Initial Inspections--Inspection of Cosmetology Establishments Before Operation.

(a) (No change.)

(b) The cosmetology establishment owner shall request an initial inspection from the department and pay the fee required by §83.80. In order for the department to schedule the initial inspection in a timely manner, the initial inspection request and fee should be submitted to the department no later than forty-five (45) calendar days prior to the opening date of the establishment.

(c) Upon receipt of the owner's request and the fee, the department shall schedule the initial inspection date and notify the owner.

(d) Upon completion of the initial inspection, the owner shall be advised in writing of the results. The inspection report will indicate whether the cosmetology establishment meets or does not meet the minimum requirements of the Act and this chapter.

(e) - (f) (No change.)

§83.53.Risk-based Inspections.

(a) Risk-based inspections are those required in addition to periodic inspections required under §83.52, for cosmetology establishments determined by the department to be a greater risk to public health or safety. To [ In order to ] determine which establishments will be subject to risk-based inspections, the department has established criteria and frequencies for inspections. The owner of the cosmetology establishment shall pay the fee required under §83.80 for each risk-based inspection, in a manner established by the department.

(b) - (g) (No change.)

§83.70.Responsibilities of Individuals.

(a) - (d) (No change.)

(e) Individual licenses and [ , ] booth rental (independent contractor) licenses [ , and the last inspection report ] must be posted at the licensee's work station in the public view.

(f) - (j) (No change.)

§83.71.Responsibilities of Beauty Salons , Specialty Salons, Booth Rentals .

(a) - (e) (No change.)

(f) In addition to the requirements of subsection (e):

(1) beauty salons shall provide the following equipment for each licensee present and providing services :

(A) one working station [ for each operator ];

(B) one styling chair [ for each operator ];

(C) (No change.)

(D) one hand-held hair dryer or hood hair dryer, with or without chair [ for each operator ].

(2) manicure salons shall provide the following equipment for each licensee present and providing services :

(A) one manicure table with light [ for each manicurist ];

(B) one manicure stool [ for each manicurist ]; and

(C) (No change.)

(3) facial salons shall provide the following equipment for each licensee present and providing services :

(A) one facial couch/chair [ for each facialist ]; and

(B) one mirror [ for each facialist ].

(4) (No change.)

(5) wig salons shall provide the following equipment for each licensee present and providing services :

(A) - (C) (No change.)

(6) hair weaving/braiding salons shall provide the following equipment for each licensee present and providing services :

(A) one work station [ for each hair weaver/braider ];

(B) one styling chair [ for each hair weaver/braider ];

(C) - (D) (No change.)

(g) - (h) (No change.)

[ (i) Booth rental (independent contractor) licensees must post the original or a duplicate booth rental license issued by the department at each practice location.]

(i) [ (j) ] Booth rental (independent contractor) licensees must comply with all state and federal laws relating to independent contractors.

(j) [ (k) ] A booth rental (independent contractor) licensee may provide the cosmetology service(s) authorized by the independent contractor's cosmetology license.

(k) Cosmetology establishments shall display in the establishment, in a conspicuous place clearly visible to the public, a copy of the establishment's most recent inspection report issued by the department.

§83.72.Responsibilities of Beauty Culture Schools.

(a) - (c) (No change.)

(d) The curricula [ curriculum ] shall be posted in a conspicuous place in the school. A current syllabus and lesson plan for each course shall be maintained by the school and be available for inspection.

(e) Unless the context clearly indicates otherwise, when used in this section the term "student-instructor" shall mean a student permit holder who is enrolled in an instructor curriculum of a beauty culture school.

(f) [ (e) ] Schools must have not less than one full-time licensed instructor on staff and on duty during business hours for each 25 students in attendance, including evening classes. A school may not enroll more than three student-instructors for each licensed instructor teaching in the school on a full-time basis. The student-instructor shall at all times work under the direct supervision of the full-time licensed instructor and may not service clients, but will concentrate on teaching skills. A licensed instructor must be physically present during all curriculum activities. No credit for instructional hours can be granted to a cosmetology student unless such hours are accrued under the supervision of a licensed instructor.

(g) [ (f) ] Schools must maintain one album to display each student permit, including affixed picture, of each enrolled student. The permits shall [ should ] be displayed in alphabetical order by last name, then alphabetical order by first name, and, if more than one student has the same name, by student permit number .

(h) [ (g) ] Schools must use a time clock to track student hours and maintain a daily record of attendance with each student personally punching the time clock . [ in accordance with the following: ]

[ (1) Attendance records will be maintained in the school and available to the department for a period of 48 months after the student completes or terminates attendance.]

[ (2) Within five days of a time clock failure, written documentation must be submitted to the department on a department-approved form stating the time clock failure. If a technician is required to repair the clock, a copy of the work order indicating date(s) of repair must be submitted as part of the written documentation.]

[ (3) Not later than the 10th day of each month, a school must display on a department-approved form the monthly hour report showing the hours acquired by each student during the preceding month in an album or binder.]

[ (4) Each student must be given the opportunity to review, under supervision, his or her hours, and to sign or initial the report. The report shall be complete, accurate, and kept available for inspection by the student or a department representative. One copy of the monthly hour report, signed by a school official, must be given to the department inspector at each inspection visit.]

[ (5) Students are prohibited from preparing hour reports or supporting documents. Student-instructors may prepare hours reports.]

[ (6) A school must properly account for the hours granted to each student. A school shall not engage in any act directly or indirectly that grants or approves student hours that are not accrued in accordance with this chapter.]

(i) Beauty culture schools shall post a sign at the time clock that states the following department requirements:

(1) Each student must clock in/out for himself/herself. No student may allow another person to clock in or out on behalf of that student.

(2) No credit shall be given for any times written in, except in a documented case of time clock failure or other situations approved by the department.

(3) If a student is in or out of the facility for lunch, he/she must clock out.

(4) Students leaving the facility for any reason, including smoke breaks, must clock out, except when an instructional area on a campus is located outside the approved facility, that area is approved by the department and students are under the supervision of a licensed instructor.

(j) Students are prohibited from preparing hour reports or supporting documents. Student-instructors may prepare hour reports and supporting documents; however only school owners and school owner designees, including licensed instructors, may electronically submit information to the department in accordance with this chapter. No student permit holder, including student-instructors, may electronically submit information to the department under this chapter.

(k) A school must properly account for the hours granted to each student. A school shall not engage in any act directly or indirectly that grants or approves student hours that are not accrued in accordance with this chapter. A school must maintain and have available for a department and/or student inspection the following documents for a period of the student's enrollment through 48 months after the student completes the curriculum, withdraws, or is terminated:

(1) daily record of attendance;

(2) student hours accrued as demonstrated by the following documents:

(A) time clock record(s);

(B) record of time clock failure(s) and repair record(s);

(C) record of field trip hours in accordance with §83.120(d)(5);

(3) practical applications of the operator curriculum in accordance with §83.120(a); and

(4) all other relevant documents that account for a student's accrued hours under this chapter.

(l) Schools shall submit an electronic record of each student's accrued hours and, if applicable, accrued number of practical applications, in a format prescribed by the department at least one time per 15 calendar days. A school's initial submission of student hours shall include all student hours accrued at the school. Subsequent submissions shall include hours that each student completed since the prior submission of student hours. Delayed data submission(s) are permitted only upon department approval, and the department shall prescribe the period of time for which a school may delay the electronic submission of data, to be determined on a case by case basis. Upon department approval, a school may submit data required under this subsection in an alternate manner and format as determined by the department, if the school demonstrates that the requirements of this subsection would cause a substantial hardship to the school.

(m) Except for a documented leave of absence, schools shall electronically submit a student's withdrawal or termination to the department within 15 calendar days after the withdrawal or termination. Except for a documented leave of absence, a school shall terminate a student who does not attend a cosmetology curriculum for 60 days.

(n) Public schools shall electronically submit a student's accrual of 500 hours in math, lab science, and English.

[ (h) Private schools can utilize locations away from the building for instruction in the approved cosmetology school curriculum. The instruction at these locations must be identified as a field trip.]

(o) [ (i) ] All areas of a school or campus are acceptable as instructional areas for a public cosmetology school, provided that the instructor is teaching cosmetology curricula [ curriculum ] required under §83.120.

(p) [ (j) ] A private cosmetology school may provide cosmetology instruction to public high school students by contracting with the Texas Education Agency and complying with Texas Education Agency law and rules. A public high school student receiving instruction at a private cosmetology school in accordance with a contract between the private cosmetology school and the Texas Education Agency is considered to be a public high school student enrolled in a public school cosmetology program for purposes of the Act and department rules.

[ (k) Schools may enroll applicants for a refresher course. A person who holds a valid Texas license may service clients in the school. The school may receive compensation for services performed by a student holding a valid Texas license; however, the student may not receive compensation.]

[ (l) The school principal or program administrator must certify that each public high school student has successfully completed 1,000 clocked cosmetology hours before 500 academic hours can be granted by the department for successfully passing academically approved courses to include math, lab science and English.]

[ (m) When a student graduates, the school must certify that the student has completed the required curriculum and that all practical applications have been completed.]

(q) [ (n) ] Schools may establish school rules of operation and conduct, including rules relating to absences and clothing, that do not conflict with this chapter.

(r) [ (o) ] Beauty culture schools must have a classroom separated from the laboratory area by walls extending to the ceiling and equipped with the following:

(1) desks and chairs or table space for a minimum of 10 students (plus one desk or chair or table space for additional students enrolled an in attendance per theory class);

(2) charts covering, bones, muscles, nerves, skin, and nails;

(3) medical dictionary;

(4) minimum visual aid requirements: television and VCR or DVD; [ and ]

(5) a dispensary of not less than 50 contiguous square feet with a double sink with hot and cold running water and space for storage and dispensing of supplies and equipment ; [ . ]

(6) six shampoo bowls and six shampoo chairs;

(7) eight heat processors or hand-held hair dryers;

(8) one heat cap or therapeutic light;

(9) eight dozen cold wave rods;

(10) three electric irons, or marcel stoves and irons;

(11) sixteen styling stations covered with a non-porous material that can be cleaned and disinfected, with mirror, and 16 styling chairs (swivel or hydraulic);

(12) twelve mannequins with sufficient hair with table or attached to styling stations;

(13) one day/date formatted computer time clock;

(14) one pair of professional hand clippers;

(15) three professional hand held dryers;

(16) four manicure tables and four stools;

(17) a suitable receptacle for used towels/linen;

(18) four covered trash cans in lab area;

(19) one large wet disinfectant soaking container;

(20) a clean, dry, debris-free storage area;

(21) if teaching facial courses:

(A) facial chair;

(B) magnifying lamp;

(C) woods lamp;

(D) dry sanitizer;

(E) steamer;

(F) brush machine for cleaning;

(G) vacuum machine that includes spray device;

(H) high frequency for disinfection, product penetration, stimulation;

(I) galvanic for eliminating encrustations, product penetration ;

(J) paraffin bath and paraffin wax; and

(22) if providing manicure or pedicure nail services, a department-approved sterilizer.

(s) Cosmetology establishments shall display in the establishment, in a conspicuous place clearly visible to the public, a copy of the establishment's most recent inspection report issued by the department.

[ (p) In addition to the posting requirements of this subsection, beauty culture schools shall post a sign at the time clock which states:]

[ (1) Each student must clock in/out for himself/herself. No student may allow another person to clock in or out on behalf of that student.]

[ (2) No credit shall be given for any times written in, except in a documented case of time clock failure.]

[ (3) If a student is in or out of the facility for lunch, he/she must clock out.]

[ (4) Students leaving the facility for any reason, including smoke breaks, must clock out, except when an instructional area on a campus is located outside the approved facility, that area is approved by the department and students are under the supervision of a licensed instructor.]

§83.73.Responsibilities of Students.

(a) - (b) (No change.)

[ (c) Transfer students.]

[ (1) A student desiring to transfer from one school to another must withdraw from the first school prior to the transfer. Enrollment in two or more schools of cosmetology at the same time is prohibited.]

[ (2) A student transferring to a school who desires to claim hours and practical applications earned must inform the school transferred to prior to enrollment of his/her prior attendance and must furnish to that school and the department a record of hours claimed and practical applications completed. This record may be in the form of a transcript from the prior school or an extract from records of the department.]

[ (3) A student may not graduate until all previously accrued hours, upon re-entry to that school or transferring from another school, have been reported on any monthly hour report, but in any event, no later than the month prior to graduation.]

[ (d) Withdrawal from school.]

[ (1) A student may withdraw from school at any time by notifying the school in writing.]

[ (2) Upon withdrawal, and provided that the agreed tuition and fees have been tendered, a student is entitled to an official transcript of hours taken and practical application performed at the school withdrawn from. The transcript and practical applications must be ready for pickup or, if mailed, postmarked within ten calendar days of the school's receipt of notice of withdrawal. A copy of the transcript and practical applications must be kept in the student's file for 48 months and the copy must be made available at the request of the department.]

[ (3) A student who withdraws from a cosmetology school is entitled to a refund in accordance with Texas Occupations Code, Chapter 1602.]

[ (4) Withdrawal or termination during the first week shall be defined by scheduled clock hours. If scheduled clock hours are 40 hours per week, then the week is defined to be 40 clock hours; for part time students, the amount of scheduled clock hours per week defines the week.]

[ (5) Enrollment is defined as the time elapsed between the actual starting date and the date of the student's last day of attendance.]

[ (6) If a school closes or ceases operation before the class hours are completed, the student is entitled to a tuition refund in accordance with Texas Occupations Code, Chapter 1602.]

[ (A) Any student of an out-of-state private licensed cosmetology school may submit a request to the department to transfer the completed hours of instruction to a Texas school. A transcript must be submitted on the prescribed form and certified by the school in which the instruction was given. Portions of the curriculum of the department not taught in another state must be taken in an approved Texas school prior to taking the Texas examination.]

[ (B) A student enrolled for a specialty course may withdraw and transfer hours acquired to the operator course not to exceed the amount of hours of that subject in the operator curriculum. Students enrolled in the operator course may withdraw and transfer up to the maximum specialty hours within the operator curriculum for that course. Once a license is obtained, hours may not be transferred to another course.]

§83.74.Responsibilities--Withdrawal, Termination, Transfer, School Closure.

(a) A student desiring to transfer from one school to another must withdraw from the first school prior to the transfer. Enrollment in two or more schools of cosmetology at the same time is prohibited.

(b) A student transferring to a school who desires to claim hours and practical applications earned must inform the school transferred to prior to enrollment of his/her prior attendance and must furnish to that school and the department a record of hours claimed and practical applications completed. This record may be in the form of a transcript from the prior school or an extract from records of the department.

(c) A student may not graduate until all previously accrued hours, upon re-entry to that school or transferring from another school, have been reported.

(d) A student may withdraw from school at any time by notifying the school in writing.

(e) Upon withdrawal, and provided that the agreed tuition and fees have been tendered, a student is entitled to an official transcript of hours taken and practical application performed at the school withdrawn from. The transcript and practical applications must be ready for pickup or, if mailed, postmarked within ten calendar days of the school's receipt of notice of withdrawal. A copy of the transcript and practical applications must be kept in the student's file for 48 months and the copy must be made available at the request of the department.

(f) A student who withdraws from a cosmetology school is entitled to a refund in accordance with Texas Occupations Code, Chapter 1602.

(g) Withdrawal or termination during the first week shall be defined by scheduled clock hours. If scheduled clock hours are 40 hours per week, then the week is defined to be 40 clock hours; for part time students, the amount of scheduled clock hours per week defines the week.

(h) Enrollment is defined as the time elapsed between the actual starting date and the date of the student's last day of attendance.

(i) If a school closes or ceases operation before the class hours are completed, the student is entitled to a tuition refund in accordance with Texas Occupations Code, Chapter 1602.

(j) Any student of an out-of-state private or public cosmetology school may submit a request to the department to transfer the completed hours of instruction to a Texas school. A transcript must be submitted on the prescribed form and certified by the school in which the instruction was given. Portions of the curricula of the department not taught in another state must be taken in an approved Texas school prior to taking the Texas examination.

(k) A student enrolled for a specialty course may withdraw and transfer hours acquired to the operator course not to exceed the amount of hours of that subject in the operator curriculum. Students enrolled in the operator course may withdraw and transfer up to the maximum specialty hours within the operator curriculum for that course. Once a license is obtained, hours may not be transferred to another course.

§83.80.Fees.

(a) Application fees.

(1) - (11) (No change.)

(12) Beauty and specialty salons--$106

(13) - (14) (No change.)

(b) Renewal fees.

(1) - (6) (No change.)

(7) Student Permit--No charge.

(8) [ (7) ] Instructor License--$70

(9) [ (8) ] Facial Instructor Specialty License--$70

(10) [ (9) ] Manicure Instructor Specialty License--$70

(11) [ (10) ] Examination Proctor Registration--$25

(12) [ (11) ] Beauty and specialty salons--$69

(13) [ (12) ] Booth Rental (Independent Contractor) License--$67

(14) [ (13) ] Private Beauty Culture School--$200

(c) License by Reciprocity or Endorsement--$100

(d) Inactive License Status [ --No charge. Activate License--$25 ]

(1) Change from active status to inactive status--no charge.

(2) Renewal of license on inactive status--renewal fees as stated in §83.80(b).

(3) Change from inactive status to active status--$25.

(e) - (k) (No change.)

§83.100.Health and Safety Definitions.

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

(1) Chlorine bleach solutions--A chemical used to destroy bacteria and to disinfect implements and [ hard, ] non-porous surfaces; solution should be mixed fresh at least once per day. As used in this chapter, chlorine bleach solutions fall into three categories based on concentration and exposure time:

(A) - (C) (No change.)

(2) - (3) (No change.)

(4) Disinfectant--In this chapter, one of the following department-approved chemicals:

(A) (No change.)

(B) a chlorine bleach solution used in accordance with this chapter [ consisting of 3/4 cup of 5.25% per gallon of water ]; or

(C) (No change.)

(5) EPA-registered bactericidal, fungicidal, and virucidal disinfectant--When used according to manufacturer's instructions, a chemical that is a low-level disinfectant used to destroy bacteria and to disinfect implements and [ hard, ] non-porous surfaces.

(6) - (9) (No change.)

§83.101.Health and Safety Standards--Department-Approved Disinfectants.

(a) (No change.)

(b) Chlorine bleach solutions shall be used as follows:

(1) (No change.)

(2) Chlorine bleach solutions shall be mixed daily [ at the following minimum standard: one-third (1/3) cup of 5.25% bleach per gallon of water ].

(3) - (6) (No change.)

(c) (No change.)

§83.102.Health and Safety Standards--General Requirements.

(a) - (b) (No change.)

(c) Multi-use equipment, implements, tools or materials not addressed in this chapter shall be cleaned and disinfected before use on each client. Except as otherwise provided in this chapter, chairs [ Chairs ] and dryers do not need to be disinfected prior to use for each client.

(d) - (j) (No change.)

(k) Clean towels shall be used on each client. Towels must be washed in hot water and chlorine bleach.

(l) - (n) (No change.)

§83.104.Health and Safety Standards--Facial Services.

(a) - (b) (No change.)

(c) Facial chairs and beds, including headrest for each, shall be cleaned and disinfected prior to providing service to each client. The chair shall be made of or covered in a non-porous material that can be disinfected.

(d) - (g) (No change.)

§83.106.Health and Safety Standards--Manicure and Pedicure Services.

(a) - (c) (No change.)

(d) After each client, the following implements shall be cleaned , [ and ] disinfected , and sterilized in accordance with the rule: metal pusher and files, cuticle nipper and scissors, tweezers, [ nail brushes, ] finger and toe nail clippers , and electric drill [ file ] bits.

(e) - (g) (No change.)

§83.107.Health and Safety Standards--Electric Drill Bits.

(a) - (b) (No change.)

(c) Immediately after cleaning all visible debris, diamond, carbide, natural and metal bits shall be disinfected by complete immersion in an appropriate disinfectant between clients , then sterilized in accordance with this chapter .

(d) (No change.)

§83.108.Health and Safety Standards--Footspas.

(a) - (f) (No change.)

(g) Footspa chairs shall be cleaned and disinfected prior to providing service to each client. The chair shall be made of or covered in a non-porous material that can be disinfected.

§83.114.Health and Safety Standards--Establishments.

(a) (No change.)

(b) All floors in areas where services under the Act are performed, including restrooms and areas where chemicals are mixed or where water may splash, must be of a material which is not porous or absorbent and is easily washable, except that anti-slip applications or plastic floor coverings may be used for safety reasons. Carpet is permitted in all other areas [ the reception area ].

(c) - (d) (No change.)

(e) Every establishment shall provide at least one restroom located on or near the premises of the establishment. For public safety, chemical supplies shall not be stored in the restroom.

(f) - (i) (No change.)

§83.120.Technical Requirements-- Curricula [ Curriculum ].

(a) Operator Curricula [ Curriculum ]

Figure: 16 TAC §83.120(a)

(b) Specialist Curricula [ Curriculum ]

Figure: 16 TAC §83.120(b)

(c) Instructor Curricula [ Student-Instructor Curriculum ]

Figure: 16 TAC §83.120(c)

[ (d) Practical Applications of the Curriculum]

[Figure: 16 TAC §83.120(d)]

(d) [ (e) ] Field Trips.

(1) Cosmetology related field trips are permitted under the following conditions for students enrolled in the following courses and the guidelines under this subsection must be strictly followed.

(2) A student may obtain the following field trip curriculum hours:

(A) a maximum of 75 hours out of the 1,500 hours operator course;

(B) a maximum of 50 hours out of the 1,000 hours operator course.

(C) a maximum of 30 hours for the manicure course;

(D) a maximum of 30 hours for the facial course; and

(E) a maximum of 30 hours for students taking the 750 hour instructor [ student-instructor ] course.

(3) Unless provided by this subsection, field trips are not allowed for specialty courses.

(4) Students must be under the supervision of a licensed instructor from the school where the student is enrolled at all times during the field trip. The instructor-student ratio required in a school is required on a field trip.

(5) Complete documentation is required, including student names, instructor names, activity, location, date, and duration of the activity.

(6) No hours are allowed for travel.

(7) Prior department approval is not required. [ The report of hours earned and the documentation will be attached to the monthly hour report for the inspector to audit. ]

(e) The changes in this section, as adopted by the commission on June 5, 2006, take effect September 1, 2006, unless a later effective date is prescribed by Texas Government Code, §2001.036.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 27, 2006.

TRD-200601822

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: May 7, 2006

For further information, please call: (512) 463-7348