The Texas Department of Human Services (DHS) adopts amendments to §15.450, §15.502, and §15.503, in its Medicaid Eligibility chapter. The amendment to §15.503 is adopted with a change to the proposed text published in the December 12, 1997, issue of the Texas Register (22 TexReg 12253). The amendments to §15.450 and §15.502 are adopted without changes to the proposed text and will not be republished.

The amendments are justified to clarify policy on garnishment of income and termination of marriage on spousal impoverishment provisions.

The amendments will function by providing clarification of policy that will ensure consistent application statewide.

During the public comment period, DHS received one comment from the Houston Welfare Rights Organization, requesting that a sentence be added to the proposed rule on income to address garnishment as related to deductions for incurred medical expenses. The department has determined that the requested addition is inappropriate for this rule, which concerns general principles for treating income. Specific rules for treatment of incurred medical expenses are addressed in their own rule chapter and reflect that federal Medicaid regulations do not allow deductions for garnishment of income.

The portions of proposed rule §15.503(k) which restated or explained existing state law regarding divorce have been deleted. Therefore, only the provision which was originally proposed regarding the application of termination of marriage on spousal impoverishment will be adopted.

Subchapter E. Income

The Texas Department of Human Services (DHS) adopts amendments to §46.2005, §46.3001, §46.4005, and 46.5001, without changes to the proposed text published in the November 21, 1997 issue of the Texas Regis- ter (22 TexReg 11297).

The justification for the amendment is to clarify Community Based Alternatives options.

The amendments will function by providing a better audit trail for monitoring provider performance and enhancing the quality of service for participants.

The department received no comments regarding adoption of the amendments.

Provider Participation

The new rule is adopted under Texas Labor Code, §301.061, which provides that the Commission has the authority to adopt, amend, or rescind such rules as it deems necessary for the effective administration of the Act.

§809.89.Assessing Required Parent Fees.

(a)

The Child Care Management Services (CCMS) contractor must assess parent fees to all parents or caretakers based on the family's gross monthly income, with the following exception.

(1)

Parents or caretakers who receive Temporary Assistance for Needy Families (TANF) are assessed no fee.

(2)

Parents or caretakers who receive Supplemental Security Income (SSI) are assessed no fee.

(3)

Parents who participate in the Food Stamp Employment and Training (FSE&T) program are assessed no fee.

(4)

Parents or caretakers who receive Child Protective Services (CPS) are assessed no fee unless the Texas Department of Protective and Regulatory Services (TDPRS) caseworker or the CPS Family Preservations contract provider authorizes the CCMS contractor to assess fees to a parent.

(b)

In families where the child is the only TANF or SSI recipient, the parent fee is assessed according to subsection (d) of this section.

(c)

Teen parents who live with their parents and who are not covered under exceptions outlined under subsection (a) of this section must be assessed a parent fee. The parent fee is based solely on the teen parent's income.

(d)

Parent fees for all parents not covered under exceptions outlined under subsection (a) of this section are assessed using the following formulas.

(1)

In areas where the Commission directly manages child care services, the parent fee must be 9% of the family's gross monthly income if there is one child receiving Commission paid child care and 11% of the family's gross monthly income if there are two or more children receiving TWC paid child care.

(2)

In areas where the Local Workforce Development Board (LWDB) directly manages child care services, it is recommended that the parent fee should be no less than 9% and no more than 15% of the family's gross monthly income. The LWDB must set the actual fee policy within this range in accordance with §809.4 of this title (relating to Board Procedures for Developing Additional Requirements for Child Care Services).

(e)

Parent fees for children enrolled in Independent School District (ISD) pre-kindergarten extended day programs are reduced to reflect no charge to the parent for the portion of the day that is core pre-kindergarten. The parent fee is assessed at 65% of the usual fee if the core pre-kindergarten program is three hours per day. The fee is assessed at 33% of the usual fee if the core pre-kindergarten program is more than three hours per day.

(f)

The CCMS contractor is not permitted to assess a parent fee that exceeds the cost of care.

(g)

Parents who receive a child care subsidy from other state or federal programs such as the Job Training Partnership Act must pay that amount in addition to the assessed parent fee. The CCMS contractor must request documentation of child care subsidies from the parent.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 9, 1998.

TRD-9801780

J. Randel (Jerry) Hill

General Counsel

Texas Workforce Commission

Effective date: March 1, 1998

Proposal publication date: December 19, 1997

For further information, please call: (512) 463-8812

The Commissioner of Insurance, at a public hearing under Docket No. 2341 scheduled for March 25, 1998 at 9:00 a.m., in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin, Texas, will consider a proposal made in a staff petition. Staff's petition (captioned "Third Petition . . .") seeks amendment of the Texas Automobile Rules and Rating Manual (the Manual), to adopt new and/or adjusted 1998 model Private Passenger Automobile Physical Damage Rating Symbols and revised identification information. Staff's petition (Ref. No. A-0298-05-I) was filed on February 5, 1998.

The new and/or adjusted symbols for the Manual's Symbols and Identification Section reflect data compiled on damageability, repairability, and other relevant loss factors for the listed 1998 model vehicles.

A copy of the petition, including an exhibit with the full text of the proposed amendments to the Manual is available for review in the office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas. For further information or to request copies of the petition, please contact Sylvia Gutierrez at (512) 463-6326; refer to (Ref. No. A-0298-05-I).

Comments on the proposed changes must be submitted in writing within 30 days after publication of the proposal in the Texas Register, to the Office of the Chief Clerk, Texas Department of Insurance, P. O. Box 149104, MC 113-2A, Austin, Texas 78714-9104. An additional copy of comments is to be submitted to David Durden, Deputy Commissioner, Property and Casualty Insurance Lines, Texas Department of Insurance, P. O. Box 149104, MC 104-5A, Austin, Texas 78714-9104.

This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act).

TRD-9802007

Caroline Scott

General Counsel and Chief Clerk

Texas Department of Insurance

Filed: February 111998

The Commissioner of Insurance, at a public hearing under Docket No. 2326 held at 9:00 a.m., January 29, 1998 in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by Staff to the Texas Automobile Rules and Rating Manual (the Manual), and the Texas Standard Provisions for Automobile Policies (the Standard Provisions), through changes to Amendatory Endorsements 593C and TE 00 40. Staff's petition (Ref. No. A-1197-37-I) was published in the November 28, 1997 issue of the Texas Register (22 TexReg 11722).

This order amends Automobile Policy Endorsements 593C (applicable to the Personal Auto Policy) and TE 00 40 (applicable to the Business Auto, Garage and Truckers Coverage Forms). Endorsement 593C will become 593D and Endorsement TE 00 40 will become TE 00 40A. The physical damage coverage limit of liability is amended to allow an insurer not to apply the deductible, should there be one, when damage to glass is repaired rather than replaced. The new wording requires that the insurer and insured must mutually agree to the settlement option, if it is to be used.

It is noted that an insurer's consent not to apply the deductible for glass repair becomes inapplicable if the glass is later replaced at the insurer's cost as a result of the same occurrence. For example, an insured may not be satisfied with the repair job, and may then possibly seek replacement.

The practice of not applying or waiving the deductible began in the early 1980's. On October 24, 1984, the Attorney General of Texas issued Opinion No. JM-218 concerning the legality of the insurer's practice of waiving the deductible when the insured agrees to have the windshield repaired rather than replaced. Staff noted that one concern expressed in the attorney general opinion was whether the practice of waiving the comprehensive deductible after the loss could be considered a contract provision not written into an approved policy form, or not otherwise approved by the Board. Staff asserted that one or more insurers have recently made a decision to discontinue the practice of offering the option of repairing glass damage due to a concern that the practice may constitute a violation of the Insurance Code, Article 5.06. Staff asserted that any concerns regarding the practice of allowing an insurer not to apply a deductible when glass damage is repaired can be addressed by the approval of an amended endorsement that allows the insurer and insured to agree to the waiver of deductible and the glass repair. The new language accomplishes this purpose by providing that upon mutual agreement between the insurer and insured, the insurer will not apply the applicable deductible for a glass loss if the glass is repaired rather than replaced. Requiring mutual agreement between the insurer and insured assures that the glass repair option will be utilized only when feasible and when it is acceptable to an insured.

Staff also asserted that the practice of not applying the deductible when glass is repaired rather than replaced is good public policy. The insured benefits by not having to pay the deductible and the insurer benefits by holding down the cost of losses. The general insuring public benefits by the lower cost of losses, which holds down physical damage insurance rates.

The amendments are enhancements without additional premium charge. Under policy liberalization clauses the changes will become effective upon the effective date of the amendments (see last paragraph of this order), without policies or endorsements having to use the new language. However, a policy or renewal that becomes effective on or after June 1, 1998 must have the revised endorsement attached, or else must have the new language incorporated into the policy itself.

The amendments as adopted by the Commissioner of Insurance are shown in exhibits on file with the Chief Clerk under Ref. No. A-1197-37-I, which are incorporated by reference into Commissioner's Order No. 98-0161.

The Commissioner of Insurance has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.06, 5.10, 5.96, and 5.98.

This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act).

Consistent with the Insurance Code, Article 5.96(h), the Department will notify all insurers writing automobile insurance of this adoption by letter summarizing the Commissioner's action.

This agency hereby certifies that the amendments as adopted have been reviewed by legal counsel and found to be a valid exercise of the agency's authority.

Filed with the Office of the Secretary of State on February 11, 1998.

TRD-9801981

Caroline Scott

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: March 9, 1998

Proposal publication date: November 28, 1997

For further information, please call: (512) 463-6327

The Commissioner of Insurance, at a public hearing under Docket No. 2327 held at 9:00 a.m., January 29, 1998 in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by Staff to the Texas Automobile Rules and Rating Manual (the Manual). These amendments to Manual Rule 74 set the credit at 5% for the optional Youth Group Member Discount, under the Insurance Code, Article 5.03-5, enacted through House Bill 1498 of the 75th Texas Legislature. Staff's petition (Ref. No. A-1197-38-I) was published in the November 28, 1997 issue of the Texas Register (22 TexReg 11721).

The Insurance Code, Article 5.03-5 provides an insurer may grant a discount for certain automobile insurance premiums for members of certain youth groups if necessary qualifications are met. Article 5.03-5 provides the "commissioner by rule shall set the amount of the discount applicable under this article...." This new article applies to policies "delivered, issued for delivery, or renewed on or after January 1, 1998."

The Insurance Code, Article 5.03-5 defines "Youth group" as a nonprofit organization that is chartered as a national or statewide organization that is run exclusively for youth recreational or educational purposes. The group must have, as part of its program, components relating to prevention of drug abuse, character development, citizenship training, and physical and mental fitness. The group must have been in existence for at least 10 years, and must have a membership of which at least 65 percent are younger than age 22.

In order for an applicant to be eligible, among other requirements and restrictions, he or she must:

(1) be licensed to drive in this state;

(2) be a member of a youth group, including an adult leader, board member, or officer of the group;

(3) be younger than 22 years of age or an adult leader, board member, or officer of the group;

(4) have held a driver's license for at least three years on the date the application is filed;

(5) have not, during the three years preceding the date of the application, been convicted of a violation of a traffic safety regulation that involves a moving vehicle; and

(6) have not, during the three years preceding the date of the application, been found at fault in a motor vehicle accident.

TDI's Technical Analysis Division recommended that a credit of 5% be established as the optional discount under Manual Rule 74.J., and that is the credit hereby adopted. The amount of credit is based on judgment, since no data concerning likely experience is known to exist. Once credible actual experience has been gathered, Staff will propose any amendments to the amount of credit as deemed necessary.

The amendments as adopted by the Commissioner of Insurance are shown in an exhibit on file with the Chief Clerk under Ref. No. A-1197-38-I, which is incorporated by reference into Commissioner's Order No. 98-0164.

The Commissioner of Insurance has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.10, 5.96, 5.98, and 5.101.

This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act).

Consistent with the Insurance Code, Article 5.96(h), the Department will notify all insurers writing automobile insurance of this adoption by letter summarizing the Commissioner's action.

This agency hereby certifies that the amendments as adopted have been reviewed by legal counsel and found to be a valid exercise of the agency's authority.

Filed with the Office of the Secretary of State on February 11, 1998.

TRD-9801983

Caroline Scott

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: March 9, 1998

Proposal publication date: November 28, 1997

For further information, please call: (512) 463-6327

The Commissioner of Insurance, at a public hearing under Docket No. 2332 held at 9:00 a.m., January 29, 1998 in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by Staff to the Texas Automobile Rules and Rating Manual (the Manual). The amendments consist of new and/or adjusted 1998 model Private Passenger Automobile Physical Damage Rating Symbols and revised identification information. Staff's petition (Ref. No. A-1297-39-I) was published in the December 19, 1997 issue of the Texas Register (22 TexReg 12557).

The new and/or adjusted symbols for the Manual's Symbols and Identification Section reflect data compiled on damageability, repairability, and other relevant loss factors for the specified model year of the listed vehicles.

The amendments as adopted by the Commissioner of Insurance are shown in an exhibit on file with the Chief Clerk under Ref. No. A-1297-39-I, which is incorporated by reference into Commissioner's Order No. 98-0163.

The Commissioner of Insurance has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.10, 5.96, 5.98, and 5.101.

This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act).

Consistent with the Insurance Code, Article 5.96(h), the Department will notify all insurers writing automobile insurance of this adoption by letter summarizing the Commissioner's action.

This agency hereby certifies that the amendments as adopted have been reviewed by legal counsel and found to be a valid exercise of the agency's authority.

Filed with the Office of the Secretary of State on February 11, 1998.

TRD-9801984

Caroline Scott

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: April 21, 1998

Proposal publication date: November 28, 1997

For further information, please call: (512) 463-6327