Bill Caption

Relating to the continuation and functions of the Texas Department of Licensing Regulation.

Fiscal Notes

Estimated two-year net impact to general revenue related funds for HB 1560, Committee Report 2nd House, substituted: a negative impact of ($99,310) through the biennium ending august 31, 2023.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

In the process of continuing the functions of the Texas Department of Licensing and Regulation (TDLR), HB 1560 aims to alleviate administrative burdens by eliminating certain license types, removing regulations, and streamlining certain licensing programs, most notably with respect to barbers and cosmetologists. A number of significant provisions of the bill are enumerated below.

TDLR would be authorized to establish a minimum number of hours of continuing education required for license renewal. TDLR would be the entity required to recognize, prepare, or administer continuing education programs for license holders.

TDLR would be authorized to require a person that is applying for a license issued by TDLR to submit a financial disclosure statement along with the license application. TDLR may deny an application of a license or revoke or suspend a license if the current holder fails to disclose a relationship.

HB 1560 would repeal the Polygraph Examiners Act and abolish the Polygraph Advisory Committee. HB 1560 also aims to eliminate requirements to act as a combative sports second, matchmaker, or event coordinator in the Occupations Code.

HB 1560 would consolidate certain licenses, certifications, and permits into licenses that cover both barbers and cosmetologists while removing unnecessary regulations and licenses or certifications.

HB 1560 would consolidate the advisory boards for barbering and cosmetology into a single nine member advisory board. Separate barbering and cosmetology tuition protection accounts would be consolidated into a single barbering and cosmetology school tuition protection account with a minimum balance of $225,000.

HB 1560 would repeal the Residential Service Company Act, which requires a person issuing a home warranty to obtain a license from the Texas Real Estate Commission (TREC). The bill establishes what is considered a residential service contract and sets out provisions providing for the transfer of the regulation for such contracts and providers from the TREC to TDLR.

HB 1560 clarifies the conditions under which a person is considered to be employed by a provider or administrator in regards to residential service contracts. Such residential service contracts state they will initiate the service no later than 48 hours after the contract holder requests the services.

HB 1560 sets $25,000 as the minimum security deposit for a provider of a residential service contract who satisfies requirements and obligations by maintaining a funded reserve account. 

HB 1560 would change the educational requirement for an applicant to be eligible for a license in audiology from a doctoral degree to a master's degree.

Vote Recommendation Notes

Texas Action supports HB 1560 as it alleviates many restrictions and regulations for numerous licensed professions. On balance this bill represents a net reduction in regulation on private business in this state.