Proposed Rules Title 16

TITLE 16. ECONOMIC REGULATION

PART 2. PUBLIC UTILITY COMMISSION OF TEXAS

CHAPTER 24. SUBSTANTIVE RULES APPLICABLE TO WATER AND SEWER SERVICE PROVIDERS

SUBCHAPTER H. CERTIFICATES OF CONVENIENCE AND NECESSITY

The Public Utility Commission of Texas (Commission Staff) proposes new 16 Texas Administrative Code (TAC) §24.240, relating to Water and Sewer Utility Rates After Acquisition. The proposed rule implements Texas Water Code (TWC) §13.3011, added by House Bill 1484 enacted by the 87th Texas Legislature (R.S.). It allows an acquiring water and sewer utility to apply an existing tariff to the customers of an acquired utility without initiating a new rate proceeding. To be eligible to apply, an existing tariff must be currently in force and filed with a regulatory authority for another water and sewer system owned by the acquiring utility.

Growth Impact Statement

The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rule is in effect, the following statements will apply:

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule will not create a new regulation;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rule will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Tammy Benter, Director, Division of Utility Outreach, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Ms. Benter has determined that for each year of the first five years the proposed rule is in effect the anticipated public benefit is that it will make it easier for smaller or underperforming water and sewer utilities to be purchased by utilities with more resources that can operate these utilities comparatively efficiently ensuring access to reliable and quality water, wastewater service for acquired utilities' customers. The rule will allow the acquiring utility to recover the costs of implementing system improvements quicker. There will be no adverse economic effect on small businesses or micro-businesses as a result of enforcing this section.

Local Employment Impact Statement

For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).

Public Hearing

The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by October 14, 2023. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Commission Staff requests comments from market participants and other interested persons on the proposed rule. Interested persons may propose alternative language as a part of their filed comments. Interested persons may submit written comments on this proposal for publication draft by October 14, 2023. Comments should be organized in a manner consistent with the organization of the proposed draft rule. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 53924.

Each set of comments should include a standalone executive summary as the first page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should list each substantive recommendation made in the comments. Citations to detailed discussion in the comments are permissible but not required.

Statutory Authority

The new rule is proposed under TWC §13.041(b), which provides the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction. The new rule is also proposed under TWC §13.301 which governs the Sale, Merger, etc.; Investigation; Disallowance of Transaction and TWC §13.3011 that relates to Initial Rates for Certain Water or Sewer Systems after Purchase or Acquisition.

Cross Reference to Statute: Texas Water Code §§13.041,13.301, and 13.3011.

§24.240.Water and Sewer Utility Rates After Acquisition.

(a) Applicability. This section applies to a person who files an application with the commission under Texas Water Code (TWC) §13.301(a) and a request for authorized acquisition rates under TWC §13.3011.

(b) Definitions. In this section, the following definitions apply unless the context indicates otherwise.

(1) Authorized acquisition rates--Initial rates that are in force and shown in a tariff filed with a regulatory authority by the acquiring utility for another water or sewer system owned by the acquiring utility.

(2) Initial rates--Rates charged by an acquiring utility to the customers of an acquired utility upon acquisition.

(3) Existing rates--Rates an acquired utility charged its customers under a tariff filed with a regulatory authority prior to the utility being acquired.

(1) An acquiring utility must use existing rates as initial rates until the commission approves other rates. If the acquiring utility requests approval to charge authorized acquisition rates, the acquiring utility must continue to charge existing rates until the request to charge authorized acquisition rates is approved.

(2) An acquiring utility may request commission approval to charge authorized acquisition rates to the customers of the system for which the utility seeks approval to acquire as part of an application filed in accordance with §24.239 of this title (relating to Sale, Transfer, Merger, Consolidation, Acquisition, Lease, or Rental).

(3) An authorized acquisition rate must be in force and shown in a tariff filed with a regulatory authority by the acquiring utility for another water and sewer system on the date an application is filed for the acquisition of the utility under §24.239 of this title.

(4) If the acquiring utility has multiple in-force tariffs filed with regulatory authorities, there is a rebuttable presumption that authorized acquisition rates should be based upon an in-force tariff that was approved by the regulatory authority that has original jurisdiction over the rates charged to the acquired customers.

(5) If the in-force tariff contains rates that are phased in over time, any step of the phase-in rates included in the tariff may be considered an authorized acquisition rate if it is in the public interest. If the authorized acquisition rate is a phased-in rate, the phases must proceed along a similar schedule as the phases in the in-force tariff.

(6) The acquiring utility is not required to initiate a rate proceeding under subchapter F of chapter 13 of the Texas Water Code to request authorized acquisition rates.

(d) Application. In addition to other applicable requirements, a request for authorized acquisition rates in a §24.239 of this title proceeding must include the following:

(1) financial projections including a comparison of expected revenues under the acquired utility's existing rates and the requested authorized acquisition rates;

(2) a capital improvements plan for the acquired system;

(3) an explanation for the tariff or rate schedule the acquiring utility proposes to use for authorized acquisition rates, if the acquiring utility has multiple eligible in force tariffs or rate schedules;

(4) a rate schedule showing the existing rates and the requested authorized acquisition rates;

(5) a disclosure of whether the acquired and acquiring systems are affiliates or have been affiliates in the five year period before the proposed transaction;

(6) a billing comparison for usage of 5,000 and 10,000 gallons at existing rates and the requested authorized acquisition rates;

(7) provide documentation from the most recent base rate case in which the tariff that the acquiring utility is requesting to be approved as Authorized Acquisition Rates was approved; and

(8) any other information necessary to demonstrate that the authorized acquisition rates are just and reasonable and that the request is in the public interest.

(e) Notice requirements. In addition to the notice requirements for applications filed under §24.239 of this title, the acquiring utility must include the following information in the application for authorized acquisition rates. Commission staff must incorporate this information into the notice provided to the acquiring utility for distribution after the application is determined to be administratively complete that contains:

(1) how intervention differs from protesting a rate increase;

(2) a rate schedule showing the existing rates and the authorized acquisition rates; and,

(3) a billing comparison for usage of 5,000 and 10,000 gallons at existing rates and authorized acquisition rates.

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

Filed with the Office of the Secretary of State on September 14, 2023.

TRD-202303411

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: October 29, 2023

For further information, please call: (512) 936-7322

CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS

SUBCHAPTER C. INFRASTRUCTURE AND RELIABILITY

16 TAC §25.62

The Public Utility Commission of Texas (commission) proposes new 16 Texas Administrative Code (TAC) §25.62 relating to Transmission and Distribution System Resiliency Plans. The proposed rule will implement Public Utility Regulatory Act (PURA) §38.078 as enacted by House Bill 2555 during the Texas 88th legislative session (R.S). The proposed rule establishes the requirements and procedures for an electric utility to submit a resiliency plan to enhance the resiliency of its transmission and distribution systems.

Growth Impact Statement

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule will create a new regulation;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rule will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Chris Roelse, Director, Engineering, Infrastructure Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Mr. Roelse has determined that for each year of the first five years the proposed section is in effect the anticipated public benefit of enforcing the section will be more resilient electric transmission and distribution systems that can withstand weather related and other emergency events to improve overall electric service quality and reliability for customers. There will be no adverse economic effect on small businesses or micro-businesses as a result of enforcing this section.

Local Employment Impact Statement

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under §2001.0045(c)(7).

Public Hearing

The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by October 6, 2023. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website. Comments must be filed by October 6, 2023. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 55250.

Statutory Authority

The rule is proposed under PURA §14.002, which provides the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction. The new rule is also adopted under PURA §38.078 which allows electric utilities to submit to the commission, plans to enhance transmission and distribution system resiliency.

Cross Reference to Statute: Public Utility Regulatory Act §14.002 and §38.078

§25.62. Transmission and Distribution System Resiliency Plans.

(a) Applicability. This section applies to an electric utility that owns and operates a transmission and distribution system.

(b) Definitions. The following terms, when used in this section, have the following meanings unless the context indicates otherwise.

(1) Distribution invested capital -- The parts of the electric utility's invested capital that are categorized as distribution plant and, once they are placed into service, are properly recorded in Federal Energy Regulatory Commission (FERC) Uniform System of Accounts 352, 353, and 360 through 374. Distribution invested capital includes only costs: for plant that has been placed into service or will be placed into service prior to rates going into effect; that comply with Public Utility Regulatory Act (PURA), including §36.053 and §36.058; and that are prudent, reasonable, and necessary. Distribution invested capital does not include: generation-related costs; transmission-related costs, including costs recovered through rates set pursuant to §25.192 of this title (relating to Transmission Service Rates), §25.193 of this title (relating to Distribution Service Provider Transmission Cost Recovery Factors (TCRF)), or §25.239 of this title (relating to Transmission Cost Recovery Factor for Certain Electric Utilities); indirect corporate costs; capitalized operations and maintenance expenses; and distribution invested capital recovered through a separate rate, including a surcharge, tracker, rider, or other mechanism.

(2) Resiliency cost recovery rider (RCRR) billing determinant -- Each rate class's annual billing determinant (kilowatt-hour, kilowatt, or kilovolt-ampere) for the most recent 12 months ending no earlier than 90 days prior to an application for a Resiliency Cost Recovery Rider, weather-normalized and adjusted to reflect the number of customers at the end of the period.

(3) Resiliency event -- a low frequency, high impact event that, if not mitigated, poses a material risk to the safe and reliable operation of an electric utility's transmission and distribution systems. A resiliency event is not primarily associated with resource adequacy or an electric utility's ability to deliver power to load under normal operating conditions.

(4) Resiliency-related distribution invested capital -- Distribution invested capital associated with a resiliency plan approved under this section that will be placed into service before or at the time the associated rates become effective under this section, and that are not otherwise included in a utility's rates.

(5) Resiliency-related net distribution invested capital -- Resiliency-related invested capital that is adjusted for accumulated depreciation and any changes in accumulated deferred federal income taxes, including changes to excess accumulated deferred federal income taxes, associated with all resiliency-related distribution invested capital included in the electric utility's RCRR.

(6) Weather-normalized -- Adjusted for normal weather using weather data for the most recent ten-year period prior to the year from which the RCRR billing determinants are derived.

(c) Resiliency Plan. An electric utility may file a plan to mitigate the risks posed by resiliency events to its transmission and distributions systems. A resiliency plan may be updated, but the updated plan must not take effect earlier than three years from the date of approval of the electric utility's most recently approved resiliency plan.

(1) Resiliency measures. A resiliency plan is comprised of one or more measures designed to mitigate the risks posed to the electric utility's transmission and distribution systems by resiliency events, as described in subsection (d) of this section. Each measure must utilize one or more of the following methods:

(A) hardening electric transmission and distribution facilities;

(B) modernizing electric transmission and distribution facilities;

(D) lightning mitigation measures;

(E) flood mitigation measures;

(F) information technology;

(G) cybersecurity measures;

(H) physical security measures;

(I) vegetation management; or

(J) wildfire mitigation and response.

(2) Contents of the resiliency plan. The resiliency plan must be organized by measure, including a description of the activities, actions, standards, services, procedures, practices, structures, and equipment associated with each measure.

(A) Chosen resiliency measures and programs. The resiliency plan must identify, for each measure, one or more resiliency events that the measure is intended to mitigate.

(i) The resiliency plan must explain the electric utility's prioritization of the identified resiliency event and, if applicable, the prioritization of the particular geographic area, system, or facilities where the measure will be implemented.

(ii) The resiliency plan must include evidence of the effectiveness of the measure in preventing, responding to, or recovering from the identified resiliency event. The commission will give greater weight to evidence that is quantitative, performance-based, or provided by an independent entity with relevant expertise.

(iii) A resiliency plan must explain the benefits of the resiliency measures including but not limited to reduced system restoration costs, reduction in the frequency or duration of outages for customers. and any improvement in the overall service reliability for customers, including the classes of customers served and any critical load designations.

(iv) The electric utility should identify if a resiliency measure is a coordinated effort with federal, state, or local government programs and funding opportunities.

(v) The resiliency plan must explain the selection of each measure over any reasonable and readily-identifiable alternatives. The resiliency plan must contain sufficient analysis and evidence, such as cost or performance comparisons, to support the selection of each measure. In selecting between measures, whether a measure would support the plan's systematic approach may be considered.

(B) Resiliency events.

(i) A resiliency plan must define each type of resiliency event the plan is designed to mitigate. A resiliency event may be defined using an established definition (e.g., a hurricane) or a plan- or measure-specific definition based on the risks posed by that type of event to the electric utility's systems (e.g., flooding of a specified depth). Each type of resiliency event must be defined with sufficient detail to allow the electric utility or commission to determine whether an actual set of circumstances qualifies as a resiliency event of that type.

(ii) If appropriate, one or more magnitude thresholds must be included in the definition of a resiliency event type based on the risks posed to the electric utility's systems by that type of event. A resiliency plan may establish multiple magnitude thresholds for a single type of resiliency event (e.g., categories of hurricanes) when necessary to conduct a more granular analysis of the risks posed by the event and the options available to address it.

(iii) The resiliency plan must include a description of the system characteristics that make the electric utility's transmission and distribution systems susceptible to each identified resiliency event type. The resiliency plan must explain the electric utility's experience with, if applicable, and forecasted risk of the identified event type, including whether the forecasted risk is specific to a particular system or geographic area.

(iv) A resiliency plan must provide sufficient evidence to support the presence of and risk posed by each identified resiliency event including historical evidence of the frequency and magnitude of each event type. In assessing the presence and risk posed by each resiliency event, the commission will give great weight to any studies conducted by an independent system operator or independent entity with relevant expertise.

(C) Evaluation metric or criteria. Each measure in the resiliency plan must include a proposed metric, or criteria for evaluating the effectiveness of that measure in mitigating the associated resiliency event.

(i) The resiliency plan must include documentation necessary to support the use of the selected evaluation metric or criteria.

(ii) For an evaluation metric or criteria that is not quantitative, the resiliency plan must explain why quantitative evaluation of the effectiveness of that measure is not possible.

(iii) The resiliency plan must also include an estimate of the expected effectiveness of each measure using the selected evaluation metric or criteria.

(D) If a resiliency plan includes measures that are similar to other existing programs or measures otherwise required by law, such as a storm hardening plan under §25.95 of this title (relating to Electric Utility Infrastructure Storm Hardening) or a vegetation management plan under §25.96 of this title (relating to Vegetation Management) the electric utility must distinguish the measures in the resiliency plan from the other program's measures and, if appropriate, explain how the related items work in conjunction with one another.

(E) A resiliency plan must be implemented using a systematic approach over a period of at least three years. The resiliency plan must explain this systematic approach and provide implementation details for each of the plan's measures, including estimated capital costs, estimated operations and maintenance expenses, and an estimated timeline for completion. the resiliency plan should identify relevant cost drivers (e.g., line miles, frequency of inspections, frequency of trim cycles, etc.) that would affect the estimates.

(F) The resiliency plan must include an executive summary of the plan objectives, event to be mitigated, measures taken, and metrics used to evaluate effectiveness, cost and benefits, and how the overall plan is in the public interest.

(3) An electric utility may designate portions of the resiliency plan as critical energy infrastructure information, as defined by applicable law, and file such portions confidentially.

(d) Commission processing of resiliency plan

(1) Notice and intervention deadline. The electric utility must provide notice of its filed resiliency plan, including the docket number assigned to the resiliency plan and the deadline for intervention, in accordance with this paragraph. The notice must be provided by first class mail or, if the recipient has agreed to receive electronic notifications, electronic mail. The notice must be mailed the same day the application is filed. The intervention deadline is 20 days after the filing of the application. The notice must be delivered to:

(A) all municipalities in the electric utility's service area that have retained original jurisdiction;

(B) all parties in the electric utility's last base rate proceeding; and

(C) the Office of Public Utility Counsel. Notice delivered to the Office of Public Utility Counsel must include a complete copy of the resiliency plan.

(2) Sufficiency of resiliency plan. An application is sufficient if it includes the information required by subsection (c) of this section and the electric utility has filed proof that notice has been provided in accordance with this subsection. A motion to find a resiliency plan materially deficient must be filed no later than 20 calendar days after the resiliency plan is filed. The motion must specify the nature of the deficiency and the relevant portions of the resiliency plan, and cite the particular requirement with which the resiliency plan is alleged not to comply. The electric utility's response to a motion to find a resiliency plan materially deficient must be filed no later than five working days after such motion is received. A motion to find an amended resiliency plan deficient, when the amendment is filed in response to an order concluding that material deficiencies exist in the resiliency plan, must be filed no later than five working days after the amended resiliency plan is filed. If the presiding officer has not issued a written order within 35 calendar days of the filing of the resiliency plan, or 25 calendar days of the filing of an amended resiliency plan, concluding that material deficiencies exist in the resiliency plan, the resiliency plan is deemed sufficient.

(3) The commission will approve, modify, or deny a resiliency plan not later than 180 days after a complete resiliency plan is filed. A resiliency plan is complete if it is deemed sufficient in accordance with this subsection. The presiding officer must establish a procedural schedule that will enable the commission to approve, modify, or deny the plan not later than 180 days after a complete plan is filed. If the resiliency plan is determined to be materially deficient, the presiding officer must toll the 180-day deadline until a complete application is filed.

(A) The commission's denial of a resiliency plan is not a finding on the prudence or imprudence of a measure or estimated cost in the resiliency plan. Upon denial of a resiliency plan, an electric utility may file a revised resiliency plan for review and approval by the commission.

(B) If the commission modifies a resiliency plan, the electric utility may withdraw the resiliency plan without prejudice or propose alternative modifications for the commission's consideration. The deadline for withdrawing a modified resiliency plan or proposing alternative modifications is the deadline for a motion for rehearing under §22.264 of this title (relating to Rehearing).

(4) Commission review of resiliency plan. The commission will approve or modify an electric utility's proposed resiliency plan if it determines that approving or modifying the plan is in the public interest. In determining the public interest, the commission may consider:

(A) the verifiability and severity of the resiliency risks posed by the resiliency events the resiliency plan is designed to address;

(B) the extent to which the plan will enhance resiliency of the electric utility's system, mitigate system restoration costs, reduce the frequency or duration of outages, and improve overall service reliability for customers;

(D) the extent to which the resiliency plan prioritizes critical load as defined in §25.52 of this title (relating to Reliability and Continuity of Service);

(E) the estimated time and costs of implementing the measures proposed in the resiliency plan;

(F) whether there are more efficient or cost-effective means of addressing the resiliency events addressed by the resiliency plan; and

(G) other factors deemed relevant by the commission.

(e) Good cause exception. An electric utility must implement each measure in its most recently approved resiliency plan unless the commission grants a good cause exception to implementing one or more measure in the plan. The commission will grant a good cause exception if the electric utility demonstrates that operational needs, business needs, financial conditions, or supply chain or labor conditions dictate the exception. The commission may also grant a good cause exception allowing the electric utility to delay implementation of one or more measures in its resiliency plan if the electric utility has a pending application for a revised resiliency plan that addresses the same resiliency events.

(f) Resiliency Plan Cost Recovery. A utility may request cost recovery for costs associated with a resiliency plan approved under this section that are not otherwise included in the utility's rates.

(1) Resiliency Cost Recovery Rider. This paragraph provides a mechanism for an electric utility to request to recover certain resiliency-related costs through a resiliency cost recovery rider (RCRR) outside of a base-rate proceeding or a distribution cost recovery proceeding as part of a resiliency plan approved under this section, consistent with PURA §38.078(i).

(A) RCRR Requirements. The RCRR rate for each rate class, and any other terms or conditions related to those rates, will be specified in a rider to the utility's tariff.

(i) An electric utility must not have more than one RCRR.

(ii) An electric utility with an existing RCRR may apply to amend the RCRR to include additional costs associated with an updated resiliency plan under PURA §38.078(g).

(iii) Any RCRR established under this section may not take effect until all facilities with costs included in the RCRR begin providing service to the electric utility's customers.

(iv) As part of its next base-rate proceeding or distribution cost recovery factor proceeding for the electric utility, the electric utility may request to include its costs included in its RCRR in that proceeding and must request that RCRR rates be set to zero as of the effective date of rates resulting from that proceeding.

(B) Calculation of RCRR Rates. The RCRR rate for each rate class must be calculated according to the provisions of this subparagraph and subparagraphs (C) and (D) of this paragraph.

(i) The RCRR rate for each rate class will be calculated using the following formula: RCRR_CLASS = RR_CLASS / BD_C-CLASS

(ii) The values of the terms used in this paragraph will be calculated as follows:

(I) RR_CLASS = RR_TOT * ALLOC_C-CLASS

(II) RR_TOT = ((RNDC * ROR_RC) + RDDEPR + RNDCFIT + RDOT) - IDCCR

(III) ALLOC_C-CLASS = ALLOC_RC-CLASS * (BD_C-CLASS / BD_RC-CLASS) / &Sgr; (ALLOC_RC-CLASS * (BD_C-CLASS / BD_RC-CLASS))

(IV) IDCCR = &Sgr; (DISTREV_RC-CLASS* %GROWTH_CLASS) - DCRFLGA

(V) DISTREV_RC-CLASS = (DIC_RC-CLASS * ROR_AT) + DEPR_RC-CLASS+ FIT_RC-CLASS + OT_RC-CLASS,with the variables in this formula as defined in §25.239 of this title.

(VI) %GROWTH_CLASS = (BD_C-CLASS- BD_RC-CLASS) / BD_RC-CLASS

(iii) The terms used in this paragraph represent or are defined as follows:

(I) Descriptions of calculated values.

(-a-) RCRR_CLASS -- RCRR rate for a rate class.

(-b-) RR_CLASS -- RCRR class revenue requirement.

(-c-) RR_TOT -- Total RCRR Texas retail revenue requirement.

(-d-) ALLOC_C-CLASS -- RCRR class allocation factor for a rate class.

(-e-) IDCCR -- Incremental distribution capital cost recovery.

(-f-) DISTREV_RC-CLASS -- Distribution Revenues by rate class based on Net Distribution Invested Capital from the last comprehensive base-rate proceeding.

(-g-) %GROWTH_CLASS - Growth in billing determinants by class.

(II) RCRR billing determinants and distribution investment values.

(-a-) BD_C-CLASS -- RCRR billing determinants.

(-b-) RNDC -- Resiliency-related net distribution invested capital.

(-c-) RDDEPR -- Resiliency-related distribution invested capital depreciation expense.

(-d-) RNDCFIT -- Federal income tax expense associated with the return on the resiliency-related net distribution invested capital.

(-e-) RDOT -- Other tax expense associated with the resiliency-related distribution invested capital.

(III) Baseline values. The following values are based on those values used to establish rates in the electric utility's most recent base-rate proceeding or distribution cost recovery factor proceeding, or if an input to the RCRR calculation from the electric utility's last base-rate proceeding is not separately identified in that proceeding, it will be derived from information from that proceeding:

(-a-) BD_RC-CLASS -- Rate class billing determinants used to establish distribution base rates in the last base-rate proceeding. Energy-based billing determinants will be used for those rate classes that do not include any demand charges, and demand-based billing determinants will be used for those rate classes that include demand charges.

(-b-) ROR_RC -- After-tax rate of return approved by the commission in the electric utility's last base-rate proceeding.

(-c-) ALLOC_RC-CLASS -- Rate class allocation factor value determined under the provisions of subparagraph (C) of this paragraph.

(-d-) DCRFLGA -- The value of &Sgr;(DISTREV_RC-CLASS* %GROWTH_CLASS) in the most recent distribution cost recovery factor proceeding for the utility since its late base rate proceeding, or zero if there are no distribution cost recovery factor proceedings since the utility's last base rate proceeding.

(C) Class allocation factors. For calculating RCRR rates, the baseline rate-class allocation factors used to allocate distribution invested capital in the last base-rate proceeding will be used.

(D) Customer classification. For the purposes of establishing RCRR rates, customers will be classified according to the rate classes established in the electric utility's most recently completed base-rate proceeding.

(2) Resiliency Cost Recovery Factor. This paragraph provides a mechanism for an electric utility to request to recover certain resiliency-related costs deferred as a regulatory asset through a resiliency cost recovery factor (RCRF) rate as part of a transmission cost recovery factor proceeding under §25.239 of this title, consistent with PURA §38.078(k).

(A) Notwithstanding the existing requirements of §25.239 of this title, a utility eligible to request a transmission cost recovery factor under §25.239 of this title may, as part of an application under §25.239 of this title request to include RCRF rates calculated consistent with this paragraph in addition to the TCRF rates allowed under §25.239 of this title.

(B) RCRF rates established as part of a TCRF application under §25.239 of this title must be calculated in a manner identical to the RCRR rates described in paragraph (1) of this subsection, with the exception that the value of RRTOT must be equal to a reasonable annual amortization amount of the resiliency-related regulatory asset, less the value of IDCRR.

(C) Upon the establishment of an RCRF rate, the resiliency-related regulatory asset balance will be reduced at an annual rate by the annual amortization amount used to establish the RCRF rates.

(3) Distribution Cost Recovery Factor. This paragraph provides a mechanism for an electric utility to request to recover certain resiliency-related costs deferred as a regulatory asset as part of a distribution cost recovery factor proceeding under §25.234 of this title (relating to Rate Design), consistent with PURA §38.078(k).

(A) Notwithstanding the existing requirements of §25.234 of this title, a utility eligible to request a distribution cost recovery factor under §25.234 of this title may, as part of an application under §25.234 of this title, request to include resiliency-related costs deferred as a regulatory asset in its DCRF rates.

(B) DCRF rates established consistent with this paragraph must be calculated in a manner identical to the DCRF rates described in §25.234 of this title, with the exception that the DCRF rate for each rate class must be calculated using the following formula: [((DIC_C - DIC_RC) * ROR_AT) + (DEPR_C - DEPR_RC) + (FIT_C - FIT_RC) + (OT_C - OT_RC) + RAMORT - &Sgr; (DISTREV_RC-CLASS * %GROWTH_CLASS)] * ALLOC_CLASS / BD_C-CLASS Where the value of RAMORT must be equal to a reasonable annual amortization amount of the resiliency-related regulatory asset.

(C) Upon the establishment of an DCRF rate under this paragraph, the resiliency-related regulatory asset balance will be reduced at an annual rate by the value of RAMORT.

(4) Reconciliation.

(A) Resiliency-related amounts recovered through rates approved under this subsection are subject to reconciliation in the first base-rate proceeding for the electric utility that is filed after the effective date of the rates. As part of the reconciliation, the commission will determine if the resiliency-related costs are reasonable, necessary, and prudent.

(B) Any amounts recovered through rates approved under this subsection that are found to have been unreasonable, unnecessary, or imprudent, plus the corresponding return and taxes, must be refunded with carrying costs. Carrying costs will be determined as follows:

(i) For the time period beginning with the date on which over-recovery is determined to have begun to the effective date of the electric utility's base rates set in the base-rate proceeding in which the costs are reconciled, carrying costs will accrue monthly and will be calculated using an effective monthly interest rate based on the same rate of return that was applied to the resiliency costs included in rates.

(ii) For the time period beginning with the effective date of the electric utility's rates set in the base-rate proceeding in which the costs are reconciled, carrying costs will accrue monthly and will be calculated using an effective monthly interest rate based on the electric utility's rate of return authorized in that base-rate proceeding.

(g) Reporting requirements. An electric utility with a commission-approved resiliency plan must file an annual resiliency plan report by May 1 of each year. The annual resiliency plan report must include the following information:

(1) until the resiliency plan is fully implemented, an implementation status update consisting of:

(A) a list of each resiliency plan measure completed in the prior calendar year, and the actual capital costs and operations and maintenance expenses incurred in the prior year attributable to each measure;

(B) a list of each resiliency plan measure scheduled for completion in the upcoming year, and an estimate of capital costs and operations and maintenance expenses for each resiliency plan measure scheduled for completion in the upcoming calendar year; and

(C) an explanation for any material changes in the implementation timeline or costs associated with implementing the resiliency plan; and

(2) until the third anniversary of the plan being fully implemented, a resiliency benefit update consisting of:

(A) a report on the occurrence of any resiliency events the resiliency plan or a previously-implemented resiliency plan was intended to address, including a comparison of the frequency and magnitude of these events with any projections contained in the resiliency plan or previously-implemented resiliency plan;

(B) an evaluation of the effectiveness of each implemented resiliency plan measure in addressing any resiliency events that measure was implemented to address. This evaluation must include an analysis using the metric or criteria contained in the resiliency plan for that measure, and a comparison of the measure's actual effectiveness with its projected effectiveness.

(C) an update on the expected impact of implemented resiliency plan measures on system restoration costs, reduction in the frequency or duration of outages for customers at the location for which a resiliency plan was implemented, and any improvement in the overall service reliability for customers. An electric utility may report realized benefits and SAIDI, SAIFI, and CAIDI statistics at the feeder level when possible. The index statistics must include all interruption classifications and must display the number of critical and chronic customers on each feeder.

(3) An electric utility is required to maintain records associated with the information referred to in this subsection. Upon request by commission staff an electric utility must provide any additional information and updates on the status of the resiliency plan submitted.

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

Filed with the Office of the Secretary of State on September 14, 2023.

TRD-202303435

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: October 29, 2023

For further information, please call: (512) 936-7322

SUBCHAPTER S. WHOLESALE MARKETS

16 TAC §25.509

The Public Utility Commission of Texas (commission) proposes amendments to 16 Texas Administrative Code (TAC) §25.509, relating to Scarcity Pricing Mechanism for the Electric Reliability Council of Texas Power Region. The proposed amendments will implement Senate Bill 3, Section 18, passed in the 87th Texas Legislative Session (R.S.), by establishing an emergency pricing program for the wholesale electric market as required by Public Utility Regulatory Act (PURA) §39.162.

Growth Impact Statement

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule will create a new regulation;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rule will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Werner Roth, Senior Market Economist, Market Analysis Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Mr. Roth 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 protecting electric consumers from excessive energy prices during prolonged scarcity events while ensuring generators are able to recover costs incurred during those events. There will be no probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5).

Local Employment Impact Statement

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).

Public Hearing

The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by October 13, 2023. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website. Comments must be filed by October 13, 2023. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 54585.

Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments. Comments should be limited to ten pages, excluding the executive summary, and any attached redlines.

Statutory Authority

The amendment is proposed under PURA §14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; §14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; and §39.162, which directs the commission to establish an emergency pricing program for the wholesale electric market.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, and 39.162.

§25.509.Scarcity Pricing Mechanism for the Electric Reliability Council of Texas Power Region.

(a) Definitions. The following terms, when used in this section, have the following meanings, unless the context indicates otherwise:

(1) Generation entity--an entity that owns or controls a generation resource.

(2) Generation resource--a generator capable of providing energy or ancillary services to the ERCOT grid and that is registered with ERCOT as a generation resource.

(3) Load entity--an entity that owns or controls a load resource.

(4) Load resource--a load capable of providing ancillary service to the ERCOT system or energy in the form of demand response and is registered with ERCOT as a load resource.

(5) Resource entity--an entity that is a generation entity or a load entity.

(b) Scarcity Pricing Mechanism [~~pricing mechanism~~] (SPM). ERCOT will administer the SPM. The SPM will operate as follows:

(1) The SPM will operate on a calendar year basis.

(2) For each day, the peaking operating cost (POC) will be 10 times the natural gas price index value determined by ERCOT. The POC is calculated in dollars per megawatt-hour (MWh).

(3) For the purpose of this section, the real-time energy price (RTEP) will be measured as an average system-wide price as determined by ERCOT.

(4) Beginning January 1 of each calendar year, the peaker net margin will be calculated as: ∑((RTEP - POC) * (number of minutes in a settlement interval / 60 minutes per hour)) for each settlement interval when RTEP - POC >0.

(5) Each day, ERCOT will post at a publicly accessible location on its website the updated value of the peaker net margin, in dollars per megawatt (MW).

(6) System-Wide Offer Caps.

(A) The low system-wide offer cap (LCAP) will be set at $2,000 per MWh and $2,000 per MW per hour.

(B) The high system-wide offer cap (HCAP) will be $5,000 per MWh and $5,000 per MW per hour.

(C) The system-wide offer cap will be set equal to the HCAP at the beginning of each calendar year and maintained at this level until the peaker net margin during a calendar year exceeds a threshold of three times the cost of new entry of new generation plants.

(D) If the peaker net margin exceeds the threshold established in subparagraph (C) of this paragraph during a calendar year, the system-wide offer cap will be set to the LCAP for the remainder of that calendar year. In this event, ERCOT will continue to apply the operating reserve demand curve and the reliability deployment price adder for the remainder of that calendar year. Energy prices, exclusive of congestion prices, will not exceed the LCAP plus $1 for the remainder of that calendar year.

(7) Reimbursement for Operating Losses when the LCAP is in Effect. When the system-wide offer cap is set to the LCAP, ERCOT must reimburse resource entities for any actual marginal costs in excess of the larger of the LCAP or the real-time energy price for the resource. ERCOT must utilize existing settlement processes to the extent possible to verify the resource entity's costs for reimbursement.

(1) Activation of the EPP. The EPP must be activated if the average system-wide energy price, as determined by ERCOT, has been at the HCAP for 12 hours within a rolling 24-hour period.

(2) Emergency Offer Cap (ECAP). While the EPP is active, the system-wide offer cap will be set to the ECAP. The ECAP will be set equal to the value of the LCAP.

(3) Duration of the EPP. The EPP will remain in effect until the later of:

(A) 72 hours after the activation of the EPP; or

(B) 24 hours after ERCOT exits emergency operations.

(4) Market Notice. ERCOT will issue a market notice both when the EPP is activated and when the EPP is terminated.

(5) Reimbursement for Costs That Exceed the ECAP. While the EPP is active, ERCOT must reimburse resource entities for any actual marginal costs in excess of the larger of the ECAP or the real-time energy price for the resource. ERCOT must utilize existing settlement processes to the extent practicable to verify the resource entity's costs for reimbursement.

(6) Report. Within 60 calendar days from the date the EPP is terminated, ERCOT must file a report with the commission that contains the following information:

(A) A summary of the event that triggered the EPP;

(B) An analysis of the EPP's performance while the program was active;

(C) The number of generators that filed for cost recovery under paragraph (5) of this subsection and the total dollar amount of costs recovered with this mechanism; and

(D) Any recommendations to modify or improve the EPP.

(d) Review of System-Wide Offer Cap Programs. Beginning January 1, 2026, and every five years thereafter, the commission will review each of the system-wide offer cap programs to determine whether to update aspects of each program.

(e) [~~(c)~~] Development and Implementation [~~implementation~~]. ERCOT must use a stakeholder process, in consultation with commission staff, to develop and implement rules that comply with this section. Nothing in this section prevents the commission from taking actions necessary to protect the public interest, including actions that are otherwise inconsistent with the other provisions in this section.

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

Filed with the Office of the Secretary of State on September 14, 2023.

TRD-202303432

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: October 29, 2023

For further information, please call: (512) 936-7322

16 TAC §25.515

The Public Utility Commission of Texas (commission) proposes new 16 Texas Administrative Code (TAC) §25.515 relating to Texas Backup Power Package Advisory Committee. This proposed rule will implement Public Utility Regulatory Act (PURA) Chapter 34 §34.0203 as enacted by Senate Bill (SB) 2627 during the Texas 88th Regular Legislative Session. The proposed rule will establish the advisory committee specified by PURA §34.0203 to advise the commission on the administration of the Texas backup power package program in accordance with Texas Government Code Chapter 2110.

Growth Impact Statement

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule will not create a new regulation;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rule will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in Texas Government Code chapter 2007.

Fiscal Impact on State and Local Government

David Gordon, Executive Counsel, Executive Director Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Mr. Gordon 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 establishment of the advisory committee to recommend criteria for the commission to employ in making a grant or loan for Texas backup power package projects. There will be no probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5).

Local Employment Impact Statement

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under §2001.0045(c)(7).

Public Hearing

The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by October 12, 2023. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website. Comments must be filed by October 19, 2023. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 55407.

Each set of comments should include a stand-alone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments.

Statutory Authority

The rule is proposed under Public Utility Regulatory Act (PURA) §14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; §14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; and §34.0203, which requires the establishment of advisory committee to recommend criteria for the commission to employ in making a grant or loan for funding of Texas backup power packages. The amendment is also proposed under Texas Government Code Chapter 2110 which governs the establishment and oversight of state agency advisory committees.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, and 34.0203.

§25.515.Texas Backup Power Package Advisory Committee.

(a) Definitions.

(1) Advisory committee--the advisory committee convened under the authority described in PURA §34.0203.

(2) Texas backup power package--a stand-alone, behind-the-meter, multiday backup power source that can be used for islanding.

(b) Purpose and Duties. The advisory committee is established to recommend criteria for the commission to employ in making a grant or loan under PURA chapter 34, subchapter B. The advisory committee must:

(1) No later than October 1, 2024, submit, in writing, recommendations for the types of Texas backup power package projects that should be funded by loans and the types of Texas backup power package projects that should be funded by grants.

(2) No later than October 1, 2024, submit, in writing, a report to the commission with recommendations for procedures for the application for and award of a grant or loan in accordance with PURA chapter 34, subchapter B.

(3) Make any other recommendation to the commission regarding matters associated with PURA chapter 34, subchapter B that the advisory committee finds appropriate.

(4) Record minutes of each advisory committee meeting and provide a copy of those minutes to the commission.

(c) Composition and Membership. The advisory committee will consist of no fewer than three and no more than nine members. The executive director is authorized to solicit candidates, evaluate their qualifications, and make appointments to the advisory committee to fill any open position on the advisory committee. The executive director will select members of the advisory committee after reviewing qualifications of potential members. Persons interested in serving on the advisory committee may submit a resume and statement of interest to the executive director at TexasBackupPower@puc.texas.gov.

(d) Membership Term. An advisory committee member's term begins when the executive director files notice of the member's appointment on the commission's filing interchange. Each member will serve on the advisory committee until the member resigns or is removed. A member may resign by submitting written notice of resignation to the executive director. The commission or the executive director may remove an advisory committee member for any reason or for no reason.

(e) Reimbursement. Members of the advisory committee will not be reimbursed for expenses.

(f) Meetings. The first advisory committee meeting will be called by the executive director. At this first meeting, the advisory committee members must designate a presiding officer to preside over the advisory committee and report to the commission. The presiding officer must call all subsequent meetings of the advisory committee as frequently as necessary to carry out the advisory committee's purpose. A majority of seated members will constitute a quorum necessary for carrying out advisory committee business. The advisory committee may seek and incorporate the input of any person while carrying out its duties.

(g) Duration. The advisory committee will automatically be abolished on the earlier of 180 days after the date the advisory committee delivers the reports described in subsection (b) of this section or four years after the effective date of this rule.

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

Filed with the Office of the Secretary of State on September 14, 2023.

TRD-202303436

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: October 29, 2023

For further information, please call: (512) 936-7322

PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

CHAPTER 60. PROCEDURAL RULES OF THE COMMISSION AND THE DEPARTMENT

SUBCHAPTER K. LICENSING PROVISIONS RELATED TO MILITARY SERVICE MEMBERS, MILITARY VETERANS, AND MILITARY SPOUSES

The Texas Department of Licensing and Regulation (Department) proposes amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 60, Subchapter K, §§60.500-60.504, 60.510, 60.512, 60.514, 60.516, and 60.519; proposes a new rule at Subchapter K, §60.518; and proposes the repeal of an existing rule at Subchapter K, §60.518, regarding the Procedural Rules of the Commission and the Department. These proposed changes are referred to as the "proposed rules."

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 60, Subchapter K, implement Texas Occupations Code, Chapter 51, General Provisions Related to Licensing; Chapter 55, Licensing of Military Service Members, Military Veterans, and Military Spouses; and the license portability provisions of the federal Servicemembers' Civil Relief Act found at 50 U.S.C. §4025a.

The proposed rules are necessary to implement Senate Bill (SB) 422, 88th Legislature, Regular Session (2023), and the federal Servicemembers' Civil Relief Act by: (1) updating current definitions and terms in Chapter 55, Occupations Code to comport with federal and state standards; (2) extending the license portability of out-of-state occupational licenses for military service members stationed in Texas consistent with federal and state law; (3) extending residency status for non-resident license applicants to military service members; and (4) implementing a three-year recognition of out-of-state occupational licenses for military spouses whose status as a spouse changes due to a divorce or other occurrence. The proposed rules also repeal the issuance of a three-year temporary license - formerly available in conjunction with the recognition of an out-of-state license - for eligible military members, as it is redundant with other licensing options. The proposed rules also introduce new §60.518 to implement the provisions of SB 422 and the federal legislation. Current §60.518 is repealed by the proposed rules.

SECTION-BY-SECTION SUMMARY

The proposed rules amend §60.500, Military Subchapter, to include a reference to the license portability provisions of the federal Servicemembers' Civil Relief Act found at 50 U.S.C. §4025a.

The proposed rules amend §60.501, Definitions, by: (1) expanding the definition of "active duty" to include an added portion of the federal definition for "military service" from 50 U.S.C. §3911(2)(C) which requires any period during which a person is absent from duty on account of sickness, wounds, leave, or other lawful cause to be classified as active duty; and (2) shortening the length of defined terms used throughout the rules.

The proposed rules amend §60.502, Determining the Amount of Military Experience, Service, Training, or Education, to remove redundant or unnecessary language.

The proposed rules amend §60.503, Exemption from Late Renewal Fees, to remove redundant or unnecessary language.

The proposed rules amend §60.504, Extension of Certain Deadlines, to remove redundant or unnecessary language.

The proposed rules amend §60.510, License Requirements for Applicants with Military Experience, Service, Training, or Education, to remove redundant or unnecessary language.

The proposed rules amend §60.512, Expedited Alternative Licensing Requirements--Substantially Equivalent License, to remove redundant or unnecessary language.

The proposed rules amend §60.514, Expedited Alternative Licensing Requirements--Previously Held Texas License, to remove redundant or unnecessary language.

The proposed rules amend §60.516, Expedited Alternative Licensing Requirements--Demonstration of Competency by Alternative Methods, to remove redundant or unnecessary language.

The proposed rules add new §60.518, Recognition of Out-of-State License of Military Service Members and Military Spouses, which describes the out-of-state license recognition process related to a regulated business or occupation for eligible service members and their spouses. The new rule will: (1) implement pertinent provisions of the federal Servicemembers' Civil Relief Act alongside SB 422 to provide for recognition of out-of-state occupational licenses for service members and spouses; (2) describe the specific prerequisites and procedure by which the department will grant recognition to out-of-state occupational licenses to eligible persons; (3) repeal the department's issuance of a three-year temporary license to an eligible person whose out-of-state occupational has been recognized; (4) authorize a military spouse who is recognized to engage in a business or occupation in Texas under a current out-of-state license to continue to engage in that business or occupation for three years after formal department recognition, in the event of divorce or similar event that affects the spouse's status as a military spouse; (5) acknowledge the applicability of interstate licensure compacts to state law; and (6) remove redundant or unnecessary language. This rule replaces existing §60.518.

The proposed rules amend §60.519, License Eligibility-Establishing License Residency Requirement for Out-of-State Military Service Members and Military Spouses, to: (1) acknowledge the applicability of interstate licensure compacts to state law; and (2) remove redundant or unnecessary language.

The proposed rules repeal existing §60.518.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Tony Couvillon, Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rule is in effect, enforcing or administering the proposed rule does not have foreseeable implications relating to costs or revenues of state or local governments.

LOCAL EMPLOYMENT IMPACT STATEMENT

As Mr. Couvillon has determined that the proposed rules will not affect a local economy, the agency is not required to prepare a local employment impact statement under Government Code §2001.022.

PUBLIC BENEFITS

Mr. Couvillon also has determined that for each year of the first five-year period the proposed rules are in effect, the public benefit will be that military service members and their spouses will be able to continue in their occupation with little interruption in their affairs upon being stationed in Texas. Moreover, department recognition of a military service member's out-of-state occupational license would authorize the member to work for the duration of their military orders, rather than a one- or two-year duration for a Texas license, depending on the program.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL

Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rules. Military service members or spouses who meet the requirements for department recognition under Section 55.0041 of the Texas Occupations Code would obtain the work authorization letter at no cost, and these authorizations would impose no cost on any other persons.

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

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. Because the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, are not required.

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

The proposed rules do not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Government Code §2001.0045.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the proposed rules will be in effect, the agency has determined the following:

1. The proposed rules do not create or eliminate a government program.

2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.

4. The proposed rules do not require an increase or decrease in fees paid to the agency.

5. The proposed rules do not create a new regulation.

6. The proposed rules expand, limit, or repeal an existing regulation. The proposed rules expand an existing regulation by: (a) extending department recognition of out-of-state occupational licenses for military service members in addition to their spouses under Section 55.0041 of the Texas Occupations Code, and (b) authorizing a military spouse who is authorized to engage in a business or occupation in Texas without obtaining the required license to continue to engage in that business or occupation for the remainder of the authorized three years following a divorce or similar event that affects the spouse's status as a military spouse.

The proposed rules repeal an existing regulation by removing the department's issuance of a three-year temporary license to a military spouse whose out-of-state license authorizes them to work in Texas.

7. The proposed rules increase the number of individuals subject to the rules' applicability. Once the proposed rules are adopted, military service members will be afforded department recognition for their out-of-state occupational licenses. Once department recognition for military service members takes place, each new eligible applicant will result in an increase in the number of individuals subject to the rules' applicability.

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

TAKINGS IMPACT ASSESSMENT

The Department has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rules do not constitute a taking or require a takings impact assessment under Government Code §2007.043.

PUBLIC COMMENTS

Comments on the proposed rules may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/gcerules; by facsimile to (512) 475-3032; or by mail to Monica Nuñez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.

16 TAC §§60.500 - 60.504, 60.510, 60.512, 60.514, 60.516, 60.518, 60.519

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 55, which authorize the Commission, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 55, and the Federal Servicemembers Civil Relief Act at 50 U.S.C. §4025a, and the program statutes for all of the Department programs: Agriculture Code, Chapter 301 (Weather Modification and Control); Education Code, Chapter 1001 (Driver and Traffic Safety Education); Government Code, Chapters 171 (Court-Ordered Programs); and 469 (Elimination of Architectural Barriers); Health and Safety Code, Chapters 401, Subchapter M (Laser Hair Removal); 754 (Elevators, Escalators, and Related Equipment); and 755 (Boilers); Labor Code, Chapter 91 (Professional Employer Organizations); Occupations Code, Chapters 202 (Podiatrists); 203 (Midwives); 401 (Speech-Language Pathologists and Audiologists); 402 (Hearing Instrument Fitters and Dispensers); 403 (Dyslexia Practitioners and Therapists); 451 (Athletic Trainers); 455 (Massage Therapy); 506 (Behavioral Analysts); 605 (Orthotists and Prosthetists); 701 (Dietitians); 802 (Dog or Cat Breeders); 1151 (Property Tax Professionals); 1152 (Property Tax Consultants); 1202 (Industrialized Housing and Buildings); 1302 (Air Conditioning and Refrigeration Contractors); 1304 (Service Contract Providers and Administrators); 1305 (Electricians); 1603 (Barbers and Cosmetologists); 1802 (Auctioneers); 1901 (Water Well Drillers); 1902 (Water Well Pump Installers): 1952 (Code Enforcement Officers); 1953 (Sanitarians); 1958 (Mold Assessors and Remediators); 2052 (Combative Sports); 2303 (Vehicle Storage Facilities); 2308 (Vehicle Towing and Booting); 2309 (Used Automotive Parts Recyclers); 2310 (Motor Fuel Metering and Quality); 2311 (Electric Vehicle Charging Stations); and 2402 (Transportation Network Companies); and Transportation Code, Chapters 551A (Off-Highway Vehicle Training and Safety); and 662 (Motorcycle Operator Training and Safety).

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 422, 88th Legislature, Regular Session (2023).

§60.500.Military Subchapter.

This subchapter implements the provisions related to military service members, military veterans, and military spouses under Texas Occupations Code, Chapters 51 and 55 and other statutes applicable to specific programs regulated by the commission and the department, and the license portability provisions of the federal Servicemembers' Civil Relief Act found at 50 U.S.C. §4025a.

§60.501.Military Definitions.

The following words and terms, when used in this subchapter, have the following meanings.

(1) Active duty--Current full-time military service in the armed forces of the United States or active duty military service as a member of the Texas military forces, as defined by §437.001, Government Code, or similar military service of another state. The term does not include service performed exclusively for training, such as basic combat training, advanced individual training, annual training, inactive duty training, and special training periodically made available to service members. The term includes any period during which a person is absent from duty on account of sickness, wounds, leave, or other lawful cause.

(2) Apprenticeship or apprenticeship program--This term has the same meaning as defined by statute or rule for a specific license.

(3) Armed forces of the United States--The Army, Navy, Air Force, Space Force, Coast Guard, or Marine Corps of the United States or a reserve unit of one of those branches of the armed forces.

(4) Military service member (service member)--A person who is on active duty.

(5) Military spouse (spouse)--A person who is married to a military service member.

(6) Military veteran (veteran)--A person who has served on active duty and who was discharged or released from active duty.

(7) Reserve unit of the armed forces of the United States--The Army National Guard of the United States, the Air National Guard of the United States, the Army Reserve, the Navy Reserve, the Air Force Reserve, the Coast Guard Reserve, and the Marine Corps Reserve.

(8) Similar military service of another state--The state Army National Guard, state Air National Guard, or state guard.

§60.502.Determining the Amount of Military Experience, Service, Training, or Education.

(a) The amount of military experience, service, training or education, which an applicant submits for purposes of meeting the licensing requirements of a specific license, will be determined in accordance with §60.35 [~~and based on the experience, service, training, and education requirements as required by a specific license~~].

(b) An applicant will receive credit for [~~the amount of~~] time incurred in training or in performing the specific work, duties, or functions that are applicable for a specific license. The amount of time credited may be limited to a maximum amount of time (hours, months or years) as specified by statute or rule for a specific license or may be less than the total amount of time (hours, months or years) the applicant has served in the military.

§60.503.Exemption from Late Renewal Fees.

Pursuant to Texas Occupations Code §55.002, an individual who provides the department with satisfactory documentation that the individual was serving as a [~~military~~] service member during a license renewal period may renew that license by paying the renewal fee and is exempt from paying a late renewal fee.

§60.504.Extension of Certain Deadlines.

Pursuant to Texas Occupations Code, §55.003, a [~~military~~ ] service member whose license expired while on active duty is entitled to two years of additional time from the date of discharge to complete:

(1) any continuing education requirements; and

(2) any other requirement related to the renewal of the [~~military~~] service member's license.

§60.510.License Requirements for Applicants with Military Experience, Service, Training, or Education.

(a) This section implements Texas Occupations Code §§51.4013, 55.007, 55.008, 55.009, and 1305.1645(a).

(b) This section applies to a ["] military service member ["] and a ["] military veteran ["] as defined under §60.501.

(c) An applicant under this section will be eligible to receive credit for verified military experience, service, training, or education in meeting the licensing requirements, other than an examination requirement, for a specific license issued by the department.

(d) If an apprenticeship is required for a license issued by the department, the department will credit verified military experience, service, training, or education that is relevant to the occupation toward the apprenticeship requirements for the license.

(e) An applicant who seeks to receive credit for verified military experience, service, training, or education must submit the following documentation:

(1) completed license application and any supporting documents associated with the specific department license; and

(2) completed Military Service Member, Military Veteran, or Military Spouse Supplemental Application and supporting documents including;

(A) copy of the military orders or documents showing proof of active duty status (for [~~military~~] service members);

(B) copy of the military orders or documents showing proof of veteran status (for [~~military~~] veterans); and

(C) copy of the military orders or documents showing the type and amount of related military experience, service, training, or education applicable to a specific license.

(f) The amount of military experience, service, training, or education, which an applicant submits for purposes of meeting the licensing requirements of a specific license, will be determined in accordance with §60.502.

(g) The applicant under this section must still take and pass any applicable examination required for obtaining a specific license.

(h) The initial license application fee and any examination fees paid to the department are waived for an applicant who meets the requirements under this section. The applicant is still responsible for paying any examination fees that are charged by a third-party examination vendor.

(i) The applicant under this section must [~~undergo and successfully~~] pass a criminal history background check.

(j) A [~~military~~] service member or military veteran who obtains a license under this section must comply with all [~~of the~~] license renewal requirements including fees for the specific license obtained.

§60.512.Expedited Alternative Licensing Requirements--Substantially Equivalent License.

(a) This section implements Texas Occupations Code §§55.004, 55.005, 55.006, and 55.009, as they relate to an applicant who holds a "substantially equivalent" license.

(b) This section applies to a military service member, a military veteran, and a military spouse, as defined under §60.501.

(c) An applicant under this section is eligible to obtain a license issued by the department if the applicant holds a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the Texas licensing requirements.

(d) The department will determine whether the licensing requirements of the other jurisdiction are substantially equivalent to the Texas requirements as prescribed under §60.34.

(e) The following documentation must be submitted to apply for a license under this section:

(1) completed license application and any supporting documents associated with the specific department license;

(2) completed Military Service Member, Military Veteran, or Military Spouse Supplemental Application and supporting documents including;

(A) copy of the military orders or documents showing proof of active duty status (for [~~military~~] service member and [~~military~~] spouse);

(B) copy of the military orders or documents showing proof of veteran status (for [~~military~~] veteran); and

(3) copy of the applicant's current occupational license from another jurisdiction.

(f) The applicant who qualifies for a license under this section is not required to take and pass any applicable examination required for obtaining that specific license.

(g) The initial license application fees paid to the department are waived for an applicant under this section.

(h) The applicant under this section must [~~undergo and successfully~~] pass a criminal history background check.

(i) An application under this section shall be expedited in accordance with Texas Occupations Code §55.005.

(j) Pursuant to Texas Occupations Code §55.004(b), the executive director may waive any prerequisite to obtaining a license for an applicant under this section after reviewing the applicant's credentials.

(k) A [~~military~~] service member, [~~military~~ ] veteran, or [~~military~~] spouse who obtains a license under this section must comply with all [of] the license renewal requirements including fees for the specific license obtained.

§60.514.Expedited Alternative Licensing Requirements--Previously Held Texas License.

(a) This section implements Texas Occupations Code §§55.004, 55.005, and 55.006, as they relate to an applicant who held the same Texas license within the last five years.

(b) This section applies to a military service member, a military veteran, and a military spouse, as defined under §60.501.

(c) An applicant under this section is eligible to obtain a license issued by the department if the applicant within the five years preceding the application date held the same license in Texas.

(d) The following documentation must be submitted to apply for a license under this section:

(1) completed license application and any supporting documents associated with the specific department license; and

(2) completed Military Service Member, Military Veteran, or Military Spouse Supplemental Application and supporting documents including;

(A) copy of the military orders showing proof of active duty status (for [~~military~~] service member and [~~military~~] spouse);

(B) copy of the military orders or documents showing proof of veteran status (for [~~military~~] veteran); and

(e) The applicant who qualifies for a license under this section is not required to take [~~and pass~~] any applicable examination required for obtaining that specific license.

(f) An applicant under this section must pay the license application fees associated with obtaining that specific license.

(g) The applicant under this section must [~~undergo and successfully~~] pass a criminal history background check.

(h) An application under this section shall be expedited in accordance with Texas Occupations Code §55.005.

(i) Pursuant to Texas Occupations Code §55.004(b), the executive director may waive any prerequisite to obtaining a license for an applicant under this section after reviewing the applicant's credentials.

(j) A [~~military~~] service member, [~~military~~ ] veteran, or [~~military~~] spouse[,] who obtains a license under this section[,] must comply with all [~~of the~~] license renewal requirements, including fees for the specific license obtained.

§60.516.Expedited Alternative Licensing Requirements--Demonstration of Competency by Alternative Methods.

(a) This section implements Texas Occupations Code §§55.004, 55.005, and 55.006, as they relate to an applicant that demonstrates competency by alternative methods.

(b) This section applies to a military service member, a military veteran, and a military spouse, as defined under §60.501.

(c) The department may allow an applicant under this section to demonstrate competency by alternative methods [~~in order~~] to meet the requirements for obtaining a specific license issued by the department. For purposes of this section, the standard method of demonstrating competency is the specific examination, education, and/or experience required to obtain a specific license.

(d) In lieu of the standard method(s) of demonstrating competency for a specific license and based on the applicant's circumstances, the alternative methods for demonstrating competency may include any combination of the following as determined by the department:

(1) education;

(2) continuing education;

(3) examinations (written and/or practical);

(4) letters of good standing;

(5) letters of recommendation;

(6) work experience; or

(7) other methods approved or accepted by the executive director.

(e) The following documentation must be submitted to apply for a license under this section:

(1) completed license application and any supporting documents associated with the specific department license;

(2) completed Military Service Member, Military Veteran, or Military Spouse Supplemental Application and supporting documents including;

(A) copy of the military orders showing proof of active duty status (for [~~military~~] service member and [~~military~~] spouse);

(B) copy of the military orders or documents showing proof of veteran status (for [~~military~~] veteran); and

(3) documents specified under subsection (d) that demonstrate the applicant's competency and that will be evaluated by the department.

(f) An applicant under this section must pay the license application fees associated with obtaining that specific license.

(g) The applicant under this section must [~~undergo and successfully~~] pass a criminal history background check.

(h) An application under this section shall be expedited in accordance with Texas Occupations Code §55.005.

(i) A [~~military~~] service member, [~~military~~ ] veteran, or [~~military~~] spouse, who obtains a license under this section, must comply with all [~~of the~~] license renewal requirements including fees for the specific license obtained.

§60.518.Recognition of Out-of-State License of Military Service Members and Military Spouses.

(a) This section implements Texas Occupations Code §55.0041 and the license portability provisions of the federal Servicemembers' Civil Relief Act found at 50 U.S.C. §4025a.

(b) This section applies to a military service member or military spouse, as defined under §60.501, and to a member or the spouse of a member of the commissioned corps of the National Oceanic and Atmospheric Administration or Public Health Service.

(c) A person described in subsection (b) may engage in a business or occupation for which a license is required without obtaining the applicable Texas license if the department recognizes the out-of-state license.

(d) In order for an out-of-state license to be recognized under this section, a person described in subsection (b) must provide, in a manner determined by the department:

(1) notice of the person's or spouse's intent to practice in this state;

(2) a copy of the person's military identification card;

(3) a copy of the person's or spouse's military orders showing relocation to Texas;

(4) a copy of the out-of-state license, or if unavailable, other identifying information required by the department;

(5) proof that the person remains in good standing with any licensing authority that issued to the service member or their spouse a license valid at a similar scope of practice and in the discipline applied in such jurisdiction of the licensing authority, and has no restrictions, pending enforcement actions, or unpaid fees or penalties relating to the license; and

(6) an acknowledgment that the person submits to the department's authority over the standards of practice regarding the license, discipline, and fulfillment of continuing education requirements.

(e) If the requirements of subsection (d) have been met, the department will provide written confirmation that the license is recognized by the department.

(f) A person who is issued the confirmation described in subsection (e):

(1) may engage in the authorized business or occupation for the duration of the person's military orders; and

(2) must immediately notify the department if the person is no longer in good standing with the licensing authority that issued the license recognized by the department.

(g) The department shall withdraw its recognition of a person's out-of-state license if it determines that the person is no longer in good standing with the licensing authority that issued the license.

(h) In the event of a divorce or similar event that affects a person's status as a spouse, a former spouse whose out-of-state license has been recognized pursuant to this section may continue to engage in the business or occupation until the third anniversary of the date the former spouse received the confirmation described by subsection (e).

(i) An individual who engages in a business or occupation under the authority or license established by this section is subject to the enforcement authority granted under Texas Occupations Code, Chapter 51, this chapter, and the laws and regulations applicable to the business or occupation in Texas.

(j) An application under this section shall be expedited in accordance with Texas Occupations Code §55.005.

(k) If a service member or spouse of a service member is licensed by way of an interstate licensure compact with Texas, the service member or spouse shall be subject to the requirements of the compact and the applicable laws of this State, and not this section.

§60.519.License Eligibility--Establishing License Residency Requirement for Out-of-State Military Service Members and Military Spouses.

(a) This section implements Texas Occupations Code §55.004(d) as it relates to a non-resident service member or [~~military~~ ] spouse applicant to the department for a license with a residency requirement for license eligibility.

(b) This section applies to a service member or military spouse, as defined under §60.501, that is not a resident of the State of Texas at the time of the filing of an application with the department for a license that requires residency status.

(c) A non-resident service member or [~~military~~ ] spouse applicant under this section is eligible to obtain a license issued by the department if the applicant provides documentation sufficient to establish residency within the State of Texas.

(d) A non-resident service member or [~~military~~ ] spouse applicant seeking to establish in-state residency to demonstrate eligibility to apply for a specific license under this section must submit the following documentation:

(1) a completed license application and supporting documents associated with the specific department license;

(2) documents sufficient to establish residency, including but not limited to, a copy of the permanent change of station order for the [~~military~~] service member or the spouse applicant [~~to whom the spouse is married~~];

(3) documents showing proof of active duty status for the [~~military~~] service member; and

(4) if a spouse applicant, a copy of a document showing proof of status as a military spouse.

(e) An applicant under this section must comply with all [~~of the~~] license requirements for the specific license obtained.

(f) If a service member or spouse of a service member is licensed by way of an interstate licensure compact with Texas, the service member or spouse shall be subject to the requirements of the compact and the applicable laws of this State, and not this section.

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

Filed with the Office of the Secretary of State on September 18, 2023.

TRD-202303459

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: October 29, 2023

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

16 TAC §60.518

STATUTORY AUTHORITY

The proposed repeal is proposed under Texas Occupations Code, Chapters 51 and 55, which authorize the Commission, the Department’s governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed repeal is those set forth in Texas Occupations Code, Chapters 51 and 55, and the Federal Servicemembers Civil Relief Act at 50 U.S.C. §4025a, and the program statutes for all of the Department programs: Agriculture Code, Chapter 301 (Weather Modification and Control); Education Code, Chapter 1001 (Driver and Traffic Safety Education); Government Code, Chapters 171 (Court-Ordered Programs); and 469 (Elimination of Architectural Barriers); Health and Safety Code, Chapters 401, Subchapter M (Laser Hair Removal); 754 (Elevators, Escalators, and Related Equipment); and 755 (Boilers); Labor Code, Chapter 91 (Professional Employer Organizations); Occupations Code, Chapters 202 (Podiatrists); 203 (Midwives); 401 (Speech-Language Pathologists and Audiologists); 402 (Hearing Instrument Fitters and Dispensers); 403 (Dyslexia Practitioners and Therapists); 451 (Athletic Trainers); 455 (Massage Therapy); 506 (Behavioral Analysts); 605 (Orthotists and Prosthetists); 701 (Dietitians); 802 (Dog or Cat Breeders); 1151 (Property Tax Professionals); 1152 (Property Tax Consultants); 1202 (Industrialized Housing and Buildings); 1302 (Air Conditioning and Refrigeration Contractors); 1304 (Service Contract Providers and Administrators); 1305 (Electricians); 1603 (Barbers and Cosmetologists); 1802 (Auctioneers); 1901 (Water Well Drillers); 1902 (Water Well Pump Installers): 1952 (Code Enforcement Officers); 1953 (Sanitarians); 1958 (Mold Assessors and Remediators); 2052 (Combative Sports); 2303 (Vehicle Storage Facilities); 2308 (Vehicle Towing and Booting); 2309 (Used Automotive Parts Recyclers); 2310 (Motor Fuel Metering and Quality); 2311 (Electric Vehicle Charging Stations); and 2402 (Transportation Network Companies); and Transportation Code, Chapters 551A (Off-Highway Vehicle Training and Safety); and 662 (Motorcycle Operator Training and Safety).

The legislation that enacted the statutory authority under which the proposed repeal is proposed to be adopted is Senate Bill 422, 88th Legislature, Regular Session (2023).

§60.518.Recognition of Out-of-State License of Military Spouse.

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

Filed with the Office of the Secretary of State on September 14, 2023.

TRD-202303460

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: October 29, 2023

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