Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter I. TRANSMISSION AND DISTRIBUTION
2.
TRANSMISSION AND DISTRIBUTION APPLICABLE TO ALL ELECTRIC UTILITIES
16 TAC §25.214
The Public Utility Commission of Texas (commission) proposes
new §25.214, relating to Terms and Conditions of Retail Distribution
Service Provided by Investor Owned Transmission and Distribution Utilities.
The proposed new rule will implement the Public Utility Regulatory Act, Texas
Utilities Code Annotated §39.203 (Vernon 1998, Supplement 2000) (PURA),
as it relates to the establishment of non-discriminatory terms and conditions
of retail distribution service, including the service provided to a retail
customer at transmission voltage, provided by a transmission and distribution
utility. Project Number 22187 has been assigned to this proceeding.
The proposed rule is intended to incorporate a standard tariff (pro-forma
tariff), which is the document containing the terms and conditions of retail
distribution service. This document will be adopted by reference and can only
be changed through the rulemaking process. Each transmission and distribution
utility (TDU) operating in Texas shall file with the commission a tariff to
govern its retail distribution service, using pro-forma tariff chapters 1,
3, 4, and 5 as written, but with the ability to modify chapters 2 and 6 to
reflect individual utility characteristics. The pro-forma tariff is divided
into five chapters as follows: Chapter 1 defines various terms used throughout
the pro-forma tariff; Chapter 2 involves descriptions of the TDU's certified
service area; Chapter 3 sets forth rules and regulations applicable to both
the TDU/Retail Electric Provider (REP) relationship and the TDU/Retail Customer
relationship; Chapter 4 sets forth the rules and regulations governing the
REPs' access to the TDU's delivery system; Chapter 5 sets forth the rules
and regulations governing the TDU's provision of delivery service and conditions
of service to the retail customer; and Chapter 6 involves TDU specific rate
schedules.
As part of the drafting process, commission staff conducted workshops in
Austin to receive input from potentially affected persons. Following the first
workshop, commission staff received proposed rules (straw-rules) from both
the investor owned utilities, representing the TDUs, and the REPs. After consideration
of these proposals, commission staff issued its first draft rule upon which
it received informal comments. Commission staff then held a second workshop
at which it received further input from the parties and attempted to work
towards a consensus document. Commission staff later issued a second draft
rule upon which further informal comments were received.
Damayanti Ghosh, Director of Costing and Pricing, Electric Industry Analysis
Division, Office of Regulatory Affairs, has determined that for each year
of the first five-year period the proposed section is in effect there will
be no fiscal implications for state or local government as a result of enforcing
or administering the section.
Ms. Ghosh has also 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 increased competition in the sale of electric
power to retail customers, thus resulting in lower electric energy prices
for those customers. Furthermore, there will be no adverse economic effect
on small businesses or micro-businesses as a result of enforcing this section.
There may be economic costs to persons who are required to comply with the
proposed section. These costs are likely to vary from business to business,
and are difficult to ascertain. However, it is believed that the benefits
accruing from implementation of the proposed section will outweigh these costs.
Moreover, Ms. Ghosh has determined that for each year of the first five
years the proposed section is in effect there should be no effect on a local
economy, and, therefore, no local employment impact statement is required
under Administrative Procedure Act §2001.022.
The commission seeks comments on the proposed rule from interested persons.
Comments should be organized in a manner consistent with the organization
of the proposed rule. When commenting on specific subsections of the proposed
rule, parties are encouraged to describe "best practice" examples of regulatory
policies, and their rationale, that have been proposed or implemented successfully
in other states already undergoing electric industry restructuring, if the
parties believe that Texas would benefit from application of the same policies.
The commission is only interested in receiving "leading edge" examples which
are specifically related and directly applicable to the Texas statute, rather
than broad citations to other state restructuring efforts.
In addition to comments on specific subsections of the proposed rule, the
commission requests that parties specifically address the following issues:
1. Are the provisions of this rule consistent with the protocols of the
relevant independent organizations (as defined in PURA §39.151) in Texas?
If not, please identify which provisions are inconsistent and explain why.
Also explain how these provisions need to be modified, if at all, to make
them consistent with those protocols.
2. Are the provisions of this rule consistent with the commission's customer
protection rules as proposed in Project Number 22255? If not, please identify
which provisions are inconsistent and explain why. Also explain how these
provisions need to be modified, if at all, to make them consistent with the
proposed customer protection rule. (Note: The commission plans to consider
the Project Number 22255 customer protection rules for publication at the
August 10, 2000 Open Meeting. The rules as approved for publication should
be available in Central Records and on the commission's web site no later
than August 17, 2000. If for some reason there is a delay in Project 22255,
staff will attempt to make a draft available for your review no later than
August 17, 2000.)
3. The proposed rule incorporates certain provisions (e.g., provisions
relating to line extension, service connection) of the existing customer protection
rules §§25.21 - 25.31. What other provisions, if any, of the existing
customer protection rules, should be incorporated in this rule assuming that
the existing §§25.21 - 25.31 will be replaced with new rules (viz.,
new customer protection rules to be adopted in Project Number 22255 and the
present rule dealing with the terms and conditions of retail delivery service
provided by a TDU) in the restructured market in Texas?
4. Are the standard electronic transaction (SET) protocols and testing
procedures referenced in Section 4.3.1, Eligibility, sufficient to ensure
accurate data transfer between competitive retailers and TDUs, or does there
need to be an Electronic Trading Agreement to supplement those protocols?
If so, what are the elements and provisions needed for that agreement?
In conjunction with their comments filed in this rulemaking, interested
persons may append sworn affidavits in support of their positions. The commission
will consider any comments and affidavits submitted in determining whether
to receive further evidence at the public hearing held pursuant to the Administrative
Procedure Act, Texas Government Code Annotated §2001.029.
Comments on the proposed new rule (16 copies) may be submitted to the Filing
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, PO
Box 13326, Austin, Texas 78711-3326, within 28 days after publication. Reply
comments may be submitted within 42 days after publication. The commission
invites specific comments regarding the costs associated with, and benefits
that will be gained by, implementation of the proposed section. The commission
will consider the costs and benefits in deciding whether to adopt the section.
All comments should refer to Project Number 22187.
The commission staff will conduct a public hearing on this rulemaking pursuant
to Texas Government Code §2001.029 on Friday, September 29, 2000, at
9:30 a.m. in the Commissioner's Hearing Room located on the seventh floor
of William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701.
This new rule is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2000) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction. The commission also proposes this rule pursuant to PURA §39.203,
which grants the commission authority to establish reasonable and comparable
terms and conditions for open access on distribution facilities for all retail
electric utilities offering customer choice, and comparable rates for open
access for all retail electric utilities offering customer choice.
Cross Reference to Statutes: PURA §14.002 and §39.203.
§25.214.Terms and Conditions of Retail Delivery Service Provided by Investor Owned Transmission and Distribution Utilities
(a)
Purpose. The purpose of this section is to implement Public
Utility Regulatory Act (PURA) §39.203 as it relates to the establishment
of non-discriminatory terms and conditions of retail delivery service, including
delivery service to a retail customer at transmission voltage, provided by
a transmission and distribution utility (TDU). A TDU shall provide retail
delivery service in accordance with the terms and conditions set forth in
this section to those retail customers participating in the pilot project
pursuant to PURA §39.104 on and after June 1, 2001, and to all retail
customers on and after January 1, 2002. By clearly stating these terms and
conditions, this section seeks to facilitate competition in the sale of electricity
to retail customers and to ensure reliability of the delivery systems, customer
safeguards, and services.
(b)
Application. This section, which includes the pro-forma
tariff set forth in subsection (d) of this section, governs the terms and
conditions of retail delivery service by all transmission and distribution
utilities in Texas.
(c)
Tariff. Each TDU in Texas shall file with the Public Utility
Commission of Texas (commission) a tariff to govern its retail delivery service
using the pro-forma tariff in subsection (d) of this section. TDUs may add
to or modify only Chapters 2 and 6 of the tariff, reflecting individual utility
characteristics and rates, in accordance with commission rules and procedures
to change a tariff. Chapters 1, 3, 4, and 5 of the pro- forma tariff shall
be used exactly as written; these chapters can be changed only through the
rulemaking process. If any provision in Chapter 2 or 6 conflicts with another
provision of Chapters 1, 3-5, the provision found in Chapters 1, 3-5 shall
apply, unless otherwise specified in Chapters 1, 3-5.
(d)
Pro-forma Retail Delivery Tariff. The commission adopts
by reference the form "Tariff for Retail Delivery Service", revision date
of July 20, 2000. This form is available in the commission's Central Records
division and on the commission's website at www.puc.state.tx.us.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on July 20, 2000.
TRD-200005003
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: September 3, 2000
For further information, please call: (512) 936-7308
Chapter 68.
ARCHITECTURAL BARRIERS
16 TAC §68.80
The Texas Department of Licensing and Regulation proposes
amendments to §68.80 concerning the fees for the Architectural Barriers
program.
The amendment to §68.80 proposes to increase the contract provider
filing fee from $75 to $100 and the contract provider inspection filing fee
from $50 to $75. The amendment also proposes to delete the Technical Deviations-Built
Condition fee.
The fee rate stated herein was set by the Texas Department of Licensing
and Regulation Commission, and not mandated by the Legislature. The Department
is required to structure fees for each statute to pay for its own regulation
and the fees currently in place are below the amount required by the Department
to cover costs. Without the increase it could adversely affect the administration
and enforcement of the Architectural Barriers program. The Technical Deviations-Built
Condition fee is being deleted because the prior proposed rule submission
regarding technical deviations was not adopted.
George Ferrie, Director of Code Review and Inspections, has determined
that for each year of the first five years the section is in effect there
may be some fiscal implications for state and local governments where the
governmental entities hire design professionals to review plans and perform
the inspections. The fee increase will allow the Department to cover costs
in administering the Architectural Barriers program.
Mr. Ferrie has also determined that for each year of the first five years
the section is in effect the public benefit anticipated as a result of enforcing
the section will be greater access to buildings for citizens with disabilities.
The anticipated economic effect on small businesses or building owners
who are required to comply with this section and who hire an Independent Contract
Provider, will be an additional $25 for building plan reviews or inspections.
Comments on the proposal may be submitted to George Ferrie, Director of
Code Review and Inspections, P.O. Box 12157, Austin, Texas, 78711 or facsimile
(512) 463-1376 or electronically: george.ferrie@license.state.tx.us. The deadline
for comments is August 18, 2000--5:00 p.m.
The amendments are proposed under Texas Revised Civil Statutes
Annotated, article 9102 (Vernon 1999) which authorizes the Texas Commission
of Licensing and Regulation to promulgate and enforce a code of rules and
take all action necessary to assure compliance with the intent and purpose
of the Act.
The amendments affect Texas Revised Civil Statutes Annotated, article 9102
(Vernon 1999) and the Texas Occupations Code, Chapter 51 (Vernon 1999).
§68.80.Fees
(a)
(No change.)
(b)
Fee Schedule:
Figure: 16 TAC §68.80(b)
(c)-(g)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on July 20, 2000.
TRD-200004996
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: September 3, 2000
For further information, please call: (512) 463-7348
16 TAC §74.80
The Texas Department of Licensing and Regulation proposes
amendments to §74.80 concerning the fees for the Elevators, Escalators,
and Related Equipment program.
The amendment to §74.80 proposes to raise the waiver/delay application
fee from $100 to $200 per application. The fee rate stated herein was set
by the Texas Department of Licensing and Regulation Commission, and not mandated
by the Legislature. The Department is required to structure fees for each
statute to pay for its own regulation and the fees currently in place are
below the amount to cover costs. Without the increase it could adversely affect
the administration and enforcement of the Elevators, Escalators, and Related
Equipment program.
George Ferrie, Director, Code Review and Inspection, has determined that
for the first five-year period the section is in effect there will be an additional
$100 fiscal implication for governmental entities that request a waiver/delay
for elevator equipment that does not meet the state standards. The fee increase
will allow the Department to cover costs in administering the Elevators, Escalators,
and Related Equipment program.
Mr. Ferrie also has determined that for each year of the first five years
the section is in effect the public will benefit from enhanced safety through
increased enforcement.
The anticipated economic effect on small businesses or buildings owners
who are required to comply with this section as proposed will be an additional
$100 to request a waiver/delay for an elevator, escalator, or related equipment.
Comments on the proposal may be submitted to George Ferrie, Director, Code
Review and Inspection, Texas Department of Licensing and Regulation, P.O.
Box 12157, Austin, Texas, 78711 or facsimile (512) 463-1376, or electronically:
george.ferrie@license.state.tx.us. The deadline for comments is August 18,
2000--5:00 p.m.
The amendments are proposed under Texas Health and Safety Code
Annotated, Chapter 754 (Vernon 1997) which authorizes the Texas Department
of Licensing and Regulation to promulgate and enforce a code of rules and
take all action necessary to assure compliance with the intent and purpose
of the Code.
The amendments affect Texas Health and Safety Code Annotated, Chapter 754
(Vernon 1997) and the Texas Occupations Code, Chapter 51 (Vernon 1999).
§74.80.Fees
(a)-(c)
(No change.)
(d)
Waiver/delay application fee:
$200
[
(e)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on July 20, 2000.
TRD-200004997
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: September 3, 2000
For further information, please call: (512) 463-7348
16 TAC §78.80
The Texas Department of Licensing and Regulation proposes
amendments to §78.80 concerning the fees for the Talent Agencies program.
The amendment to §78.80 proposes to decrease the fee for original
registration and renewal from $500 to $300. The amendment also proposes to
delete the payment schedule because it will no longer be necessary with the
decrease in fees. The Department is required to structure fees for each statute
to pay for its own regulation and the fees currently in place are above the
amount required by the Department to cover costs. The decrease would not adversely
affect the administration or enforcement of the talent agencies program.
Jimmy G. Martin, Director of Enforcement, has determined that for each
year of the first five years the section is in effect there will be minimal
fiscal implications for state government and no fiscal implications on local
governments.
Mr. Martin has also determined that for each year of the first five years
the section is in effect the public will benefit from a reduction in cost.
The anticipated economic effect on small businesses and person who are
required to comply with this section as proposed will be a $200 reduction
in their annual certificate fee.
Comments on the proposal may be submitted to Jimmy G. Martin, Director
of Enforcement, Texas Department of Licensing and Regulation, P.O. Box 12157,
Austin, Texas, 78711 or facsimile (512) 475-2872 or by e-mail: jimmy.martin@license.state.tx.us.
The deadline for comments is August 18, 2000--5:00 p.m.
The amendments are proposed under the Texas Occupations Code,
Chapter 2105 (Vernon 1999) which authorizes the Texas Department of Licensing
and Regulation to promulgate and enforce a code of rules and take all action
necessary to assure compliance with the intent and purpose of the Code.
The amendments affect the Texas Occupations Code, Chapter 2105 (Vernon
1999) and Chapter 51 (Vernon 1999).
§78.80.Fees--Original Registration and Renewal .
(a)
Annual certificate of registration filing
fee--$100
(b)
Annual certificate of registration fee--$300
(c)
All fees are non-refundable.
(d)
A late fee of $50 will be charged for
renewal applications postmarked between midnight of the day the current certificate
of registration expires and midnight of the 30th day after the expiration.
[(a)
The fee for filing an original talent
agency certificate of registration is $100.]
[(b)
The fee for registration and administration
is $500.]
[(c)
The filing fee and registration and administration
fees may be paid in full at the time of registration or in three equal payments
of $200 each as follows:]
[(1)
$200 at registration;]
[(2)
$200 on the first day of the fourth month after registration;
and]
[(3)
$200 on the first day of the eighth month after registration.]
[(d)
Failure to remit the second or third
payment to the department by the 10th day of the month due will be grounds
for action to suspend or revoke the license.]
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on July 20, 2000.
TRD-200004998
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: September 3, 2000
For further information, please call: (512) 463-7348
16 TAC §78.81
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas Department of Licensing and Regulation or in the Texas Register
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Licensing and Regulation
proposes the repeal of §78.81 of the Talent Agencies administrative rules.
The repeal is proposed because this section has been combined with another
section for clarity.
Jimmy G. Martin, Director of Enforcement, has determined that for the first
five-year period the repeal is in effect there will be no fiscal implications
for state or local government.
There will be no fiscal effect on small businesses and persons.
Mr. Martin also has determined that for each year of the first five years
the section is repealed the public benefit anticipated is less redundancy
and better clarification of the rules.
Comments on the proposal may be submitted to Jimmy G. Martin, Director
of Enforcement, Texas Department of Licensing and Regulation, P.O. Box 12157,
Austin, Texas, 78711 or facsimile (512) 475-2872 or by e-mail: jimmy.martin@license.state.tx.us.
The deadline for comments is August 18, 2000--5:00 p.m.
The repeal is proposed under the Texas Occupations Code, Chapter
2105 (Vernon 1999) which authorizes the Texas Department of Licensing and
Regulation to promulgate and enforce a code of rules and take all action necessary
to assure compliance with the intent and purpose of the Code.
The repeal affects the Texas Occupations Code, Chapter 2105 (Vernon 1999)
and Chapter 51 (Vernon 1999).
§78.81.Fees--Renewal Registration.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on July 20, 2000.
TRD-200004999
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: September 3, 2000
For further information, please call: (512) 463-7348
Chapter 103.
GENERAL RULES
16 TAC §103.14
The Texas Motor Vehicle Board of the Texas Department of
Transportation proposes new §103.14, concerning the procedures for manufacturers
to establish ownership of franchised dealerships in Texas under certain specific
conditions enumerated in the Texas Motor Vehicle Commission Code §5.02C.
This new rule defines procedures for manufacturers to own an interest in
a dealership and apply for a motor vehicle dealer's license on behalf of the
dealership for a limited period of time. Under the language of Texas Motor
Vehicle Commission Code §5.02C(e), manufacturers may own an interest
or operate a franchised dealership provided the manufacturer intends to sell
the dealership to another person not associated with the manufacturer within
twelve months. New §103.14 provides a procedure to allow manufacturers
to apply for extensions after the initial twelve month period if certain conditions
are met, and further defines how local dealers can protest the application
for an extension under §5.02C(f). The rule describes what a manufacturer
must show to obtain a motor vehicle dealer's license or extension. The rule
also describes the documentation required to obtain approval for manufacturer
ownership under §5.02C(e), which allows ownership by a manufacturer for
the purpose of developing dealer candidates who have historically been underrepresented
in the manufacturer's dealer body.
Brett Bray, Director, Motor Vehicle Division, has determined that for the
first five-year period the proposed section is in effect, there will be no
fiscal implications for state or local government as a result of enforcing
or administering the section.
Mr. Bray has also determined that for each year of the first five years
the new rule is in effect the anticipated public benefit will be a formal
procedure to allow the temporary ownership of franchised dealerships by manufacturers,
which could reduce financial failures in the industry and increase representation
of individuals who are historically underrepresented in the franchised dealership
body. In addition, establishment of a formal procedure to implement §5.02C(f)
will allow a continual dealer presence to serve a trade area or community.
There will be no effect on small businesses and no anticipated significant
economic cost to persons required to comply with the rule as proposed. Mr.
Bray has also certified that there will be no impact on local economies or
overall employment as a result of enforcing or administering the section.
Comments (15 copies) may be submitted to Brett Bray, Director, Motor Vehicle
Division, Texas Department of Transportation, P.O. Box 2293, Austin, Texas,
78767, (512) 416-4910. The Motor Vehicle Board will consider adoption of this
proposed rule at its meeting on September 28, 2000. The deadline for receipt
of comments on the proposed new rule is 5:00 p.m. on September 8, 2000.
The new rule is proposed under the Texas Motor Vehicle Commission
Code, §3.06, which provides the Board with authority to adopt rules as
necessary and convenient to effectuate the provisions of the Act and to govern
practice and procedure before the agency.
Motor Vehicle Commission Code §5.02C is affected by the proposed new
rule.
§103.14.Manufacturer Ownership of Franchised Dealer; Good Cause Extension; Dealer Development.
(a)
An application for a new motor vehicle dealer's license
in which a manufacturer or distributor, as those terms are defined in the
Texas Motor Vehicle Commission Code, owns any interest in or has control of
the dealership entity must be submitted to the Motor Vehicle Division no later
than 60 days before the opening of the dealership, close of the buy-sell agreement,
or the expiration of the current license, whichever is the case.
(b)
If a manufacturer or distributor applies for a new motor
vehicle dealer's license in which the manufacturer or distributor holds an
ownership interest in or has control of the dealership entity under the terms
of Texas Motor Vehicle Commission Code §5.02C(d), the license application
must contain a sworn statement from the manufacturer or distributor that the
dealership was purchased from a franchised dealer and is for sale at a reasonable
price and under reasonable terms and conditions, and that the manufacturer
or distributor intends to sell the dealership to a person not controlled or
owned by the manufacturer or distributor within 12 months of acquiring the
dealership.
(c)
A request for an extension of the initial 12 month period
for manufacturer or distributor ownership or control of a new motor vehicle
dealership in accordance with Texas Motor Vehicle Commission Code §5.02C(d)
must be submitted in accordance with subsection (a) of this section, along
with a complete application to renew the new motor vehicle dealer's license.
The request must contain a detailed explanation, including appropriate documentary
support, to show the manufacturer's or distributor's good cause for failure
to sell the dealership within the initial 12 month period. The Director of
the Motor Vehicle Division, or the director's designee, will evaluate the
request and determine whether the license should be renewed for a period not
to exceed 12 months or deny the renewal application. If the renewal application
is denied, the manufacturer or distributor will be afforded an opportunity
to request a hearing on the denial and, if requested, a hearing will be initiated
in accordance with Texas Motor Vehicle Commission Code §3.08.
(d)
Requests for extensions after the first extension is granted,
as provided in Texas Motor Vehicle Commission Code §5.02C(f), must be
submitted at least 120 days before the expiration of the current license.
Upon receipt of a subsequent request, the Board will initiate a hearing in
accordance with Texas Motor Vehicle Commission Code §3.08 at which the
manufacturer or distributor will be required to show good cause for the failure
to sell the dealership. The manufacturer or distributor has the burden of
proof and the burden of going forward on the sole issue of good cause for
the failure to sell the dealership.
(e)
The Board will give notice of the hearing described in
subsection (d) of this section to all other dealer licensees holding franchises
for the sale and service or service only of the same line-make of new motor
vehicles who are located in the same county in which the dealership owned
or controlled by the manufacturer or distributor is located or in an area
within 15 miles of the dealership owned or controlled by the manufacturer
or distributor. Such dealers, if any, will be allowed to intervene and protest
the granting of the subsequent extension. Notices of intervention by dealers
afforded a right to protest under §5.02C(f) of the Texas Motor Vehicle
Commission Code must be filed with the Docket Clerk within 15 days of the
date of mailing of the notice of hearing, with a copy provided to the manufacturer
or distributor. Failure to file a formal notice of intervention within the
specified time period will result in the disallowance of the intervention.
(f)
A hearing under subsections (d) and (e) of this section
will be conducted as expeditiously as possible, but not later than 120 days
after receipt of the subsequent request for extension from the manufacturer
or distributor. A hearings officer will prepare a written decision and proposed
order as soon as possible, but not later than 60 calendar days after the hearing
is closed. The new motor vehicle dealer's license that is the subject of the
hearing will continue in effect until a final decision is rendered on the
request for a subsequent extension.
(g)
The procedure described in subsections (d)-(f) of this
section will be followed for all extensions requested by the manufacturer
or distributor after the initial extension.
(h)
An application for a new motor vehicle dealer's license
in which a manufacturer or distributor owns any interest in the dealership
entity under the terms of Texas Motor Vehicle Commission Code §5.02C(e)
must contain sufficient documentation to show the following:
(1)
that the dealer development candidate is part of a group
of persons who historically have been underrepresented in the manufacturer's
or distributor's dealer body or is an otherwise qualified person who lacks
the resources to purchase a dealership outright;
(2)
that the manufacturer or distributor is in a bona fide
relationship with the dealer development candidate;
(3)
that the dealer development candidate has made a significant
investment in the dealership, subject to loss;
(4)
that the dealer development candidate has an ownership
interest in the dealership; and
(5)
that the dealer development candidate operates the dealership
under a plan to acquire full ownership of the dealership within a reasonable
time and under reasonable terms and conditions.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on July 19, 2000.
TRD-200004964
Brett Bray
Director
Motor Vehicle Board
Proposed date of adoption: September 28, 2000
For further information, please call: (512) 416-4899
16 TAC §§105.2, 105.3, 105.7, 105.9, 105.10, 105.13, 105.18-105.21, 105.24, 105.26, 105.28, 105.31
The Motor Vehicle Board of the Texas Department of Transportation
proposes amendments to §§105.2, 105.3, 105.7, 105.9, 105.10, 105.13,
105.19-105.21, 105.24, 105.26, 105.28, and 105.31 of Chapter 105, Advertising
Rules. The Board also proposes new §105.18, Licensee Identification,
requiring licensees to include license numbers in advertising. The sections
set guidelines for truthful and accurate practices in the advertisement of
motor vehicles.
The Appropriations Act of 1997, House Bill 1, Article IX, §167 requires
that each state agency review and consider readoption of each rule adopted
by that agency pursuant to the Government Code, Chapter 2001. Such reviews
include an assessment by the agency as to whether the reason for adopting
or readopting the rule continues to exist. The Board conducted a review of
Title 16, Chapter 105, relating to Advertising, at its June 29, 2000 meeting.
As a result of its review, the Board proposes these changes to Chapter 105.
General changes to rule language.
The Motor Vehicle Commission was renamed the Motor Vehicle Board in 1992.
The amendments change all references from "Commission" to "Board" throughout
the chapter. Other proposals correct grammar and simplify language so it is
more easily understood.
Other changes specific to each section.
Proposed changes to §105.2 state that any false, misleading or deceptive
advertising may be found a violation of the Texas Motor Vehicle Commission
Code, regardless of whether the misleading or deceptive advertising is specifically
enumerated in Chapter 105. The proposed amendment to §105.3 eliminates
redundant concepts already contained in §105.2.
Proposed amendments to §105.7 prohibit advertising greater allowances
for trade-ins or better deals because of large sales volumes unless the dealer
can show such is the case. Proposed changes to §105.9 more clearly describe
the types of taxes and fees that may be excluded from the advertised price
of a vehicle.
In accordance with a request from the Texas Automobile Dealers Association,
the proposed amendment to §105.10 changes the wording regarding the featured
price of a vehicle from "full cash price" to "a cash price for which a dealer
is willing to sell" a vehicle to a retail buyer. Subsection (c) changes the
phrase "full cash price" to a "cash price".
Proposed changes to §105.13 clarify the intent of the subchapter by
exchanging the word "used" (in advertising) for the word "featured" (in advertising).
Proposed new §105.18, Licensee Identification, requires that a dealer
licensee include its General Distinguishing Number and a lease facilitator
or lessor include its license number, clearly and conspicuously, in the advertisement.
The proposed section includes a limited exclusion for dealer groups and/or
co-op advertisements.
Section 105.20, Manufacturer and Distributor Rebates, is proposed to be
rewritten for clarity without changing the substance of the rule. Manufacturers
and distributors must still disclose any dealer contributions to rebates,
or interest or finance charge reductions. Section 105.21 is also rewritten
for clarity without making substantive changes. Dealers must disclose if a
dealer's contribution to a manufacturer's rebate, interest or finance charge
reduction might affect the final negotiated price of a vehicle.
Proposed changes to §105.24 include rewriting for clarity and adding
more examples of acceptable advertising concerning dealer discounts, savings
claims and rebates. A proposed change to §105.26(a) clarifies payment
information to be included when advertising a vehicle available for lease.
Proposed amendments to §105.28 clarify the section by adding additional
examples of lowest price claims.
Brett Bray, Director, Motor Vehicle Division, has determined that for the
first five-year period the amendments and new section are in effect there
will be no fiscal implication for state or local government as a result of
enforcing or administering the amendments and new rule.
Mr. Bray has also determined that for each of the first five years the
amendments and new section are in effect, the public benefit anticipated from
enforcement of the proposed amendments will be stronger protection of the
public and dealers from those dealers who engage in false, deceptive or misleading
practices, as well as better understanding by licensees required to comply
with the rules.
Anticipated economic cost to persons who are required to comply with new §105.18
as proposed is indeterminate, since licensees who advertise will have to pay
more for advertising space to include license numbers. There is no other anticipated
economic cost to persons who are required to comply with the amendments as
proposed. Mr. Bray has also certified that there will be no impact on local
economies or overall employment as a result of enforcing or administering
the sections.
Comments on the proposed amendments and new section may be submitted to
Brett Bray, Director, Motor Vehicle Division, P.O. Box 2293, Austin, Texas,
78768. Please submit fifteen copies. The Texas Motor Vehicle Board will consider
the adoption of the proposed amendments and new section at its meeting on
September 28, 2000.
The amendments and new section are proposed under the Texas Motor
Vehicle Commission Code, §3.06, which provides the Board with authority
to adopt and amend rules as necessary and convenient to effectuate the provisions
of this act.
Texas Motor Vehicle Commission Code §3.05(b) is affected by the proposed
amendments and new section.
§105.2.General Prohibition.
A person advertising motor vehicles shall not use false, deceptive,
unfair, or misleading advertising.
In addition to a violation of a specific
advertising rule, any other advertising or advertising practices found by
the Board to be false, deceptive, or misleading, whether or not enumerated
herein, shall be deemed violations of the Code, and shall also be considered
violations of the general prohibition.
§105.3.Specific Rules.
The violation of an advertising rule shall be considered by the
Board
[
§105.7.Untrue Claims.
The following statements are prohibited.
(1)-(2)
(No change.)
(3)
Statements representing that no other dealer grants greater
allowances for trade-ins, however stated, unless
the dealer can show
such is the case.
(4)
Statements representing that because of its large sales
volume a dealer is able to purchase vehicles for less than another dealer
selling the same make of vehicles, unless
the dealer can show
such
is the case.
§105.9.Manufacturer's Suggested Retail Price.
The suggested retail price of a new motor vehicle when advertised by
a manufacturer or distributor shall include all costs and charges for the
vehicle advertised, except that destination and dealer preparation charges,
and
any registration, certificate of title, license fees, or an additional
registration fee, if any, charged by a full service deputy as provided by
County Road and Bridge Act, §4.202(g); any taxes; and any other fees
or charges that are allowed or prescribed by law
[
§105.10.Dealer Price Advertising.
(a)
The featured price of a new or used motor vehicle, when
advertised, must be
a
[
(1)-(3)
(No change.)
(b)
(No change.)
(c)
If a price advertisement discloses a rebate cash back,
discount savings claim, or other incentive,
a
[
Figure: 16 TAC §105.10(c) (No change.)
(d)-(e)
(No change.)
§105.13.Trade-in Allowances.
No guaranteed trade-in amount or range of amounts shall be
used
[
§105.18.Licensee Identification.
(a)
A licensee advertising motor vehicles shall state the licensee's
name in the advertisement. A dealer licensee shall also include its General
Distinguishing Number. A lease facilitator or lessor shall also include its
license number. All representations shall be clearly and conspicuously set
forth in the advertisement.
(b)
With respect to co-op or dealer group advertisements, dealer
licensee names are not required to appear in the advertisement. However, if
dealers' names are listed individually, then each dealer's General Distinguishing
Number shall also be included with the dealer's name in the advertisement.
§105.19.Authorized Dealer.
The term "authorized dealer" or a similar term shall not be used unless
the advertising dealer holds both a franchise and a Texas Motor Vehicle
Board
[
§105.20.Manufacturer and Distributor Rebates.
It is unlawful for a manufacturer or distributor to advertise any offer
of a rebate,
interest or finance charge reduction,
[
§105.21.Rebate and Financing Rate Advertising by Dealers.
[
It is unlawful for a dealer to advertise an
offer of a manufacturer's or distributor's rebate,
interest or finance
charge reduction,
[
[(b)
An advertisement containing an offer
of an interest or finance charge incentive that is paid for or financed by
the dealer rather than the manufacturer or distributor, shall disclose that
the dealer pays for or finances the interest or finance charge rate reduction,
the amount of the dealer's contribution in either a dollar or percentage amount,
and that such arrangement may affect the final negotiated price of the vehicle.]
[(c)
An offer to pay, promise to pay, or tender
cash to a buyer of a motor vehicle as in a rebate or cash back program may
not be advertised, unless it is offered and paid in part by the motor vehicle
manufacturer or distributor directly to the retail purchaser or assignee of
the retail purchaser and unless the advertisement sets forth the disclosures
required by this rule.]
§105.24.Savings Claims; Discounts.
(a)
A savings claim or discount offer is prohibited except
to advertise a new
motor
[
(1)
If a savings claim or discount offer includes
only a dealer discount, the advertisement shall disclose that the discount
is from the MSRP. The following is an acceptable format for advertising a
dealer discount: "$2,000 discount off MSRP".
(2)
A savings claim or discount offer that
includes a manufacturer's customer rebate must disclose the amount of the
rebate as well as the amount of the dealer's discount. The following is an
acceptable format for advertising a savings claim with a rebate and a dealer
discount: "$2,000 savings off MSRP ($1,500 dealer discount and $500 rebate.)".
(3)
If a savings claim discloses a manufacturer's
option package discount, then that discount must be disclosed prior to the
discount off MSRP. The savings claim shall be advertised as a total savings.
The following is an acceptable format for advertising a total savings claim:
"Total Savings $3,000 ($1,000 option package discount, $1,500 dealer discount
off MSRP, and $500 rebate)".
(b)
The featured savings claim
or discount offer for a new motor vehicle, when advertised, must be the savings
claim or discount which is available to any and all members of the buying
public.
(c)
[
(d)
[
(e)
[
§105.26.Payment Disclosure--Lease.
(a)
An advertisement that promotes a consumer lease and contains
the amount of any payment; or a statement of any capitalized cost reduction
or other payment
or that no payment is
required prior to
or at consummation
or by delivery, if delivery occurs after consummation,
must clearly and conspicuously include the following:
(1)-(5)
(No change.)
(b)-(g)
(No change.)
§105.28.Lowest Price Claims.
Representing a lowest price claim
, best price claim, best deal
claim
or other similar superlative
claims
[
§105.31.Finding of Violation.
No person shall be held to be in violation of the rules, including
the general prohibition, except upon a finding thereof made by the
Board
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on July 19, 2000.
TRD-200004965
Brett Bray
Director
Motor Vehicle Board
Proposed date of adoption: September 28, 2000
For further information, please call: (512) 416-4899
Chapter 402.
BINGO REGULATION AND TAX
16 TAC §402.550
The Texas Lottery Commission proposes new rule 16 TAC §402.550,
concerning a Bingo Training Program. The purpose of the new rule is to establish
the procedures and requirements of the training program for persons designated
by organizations licensed to conduct bingo. Specifically, the new rule identifies
the person who must complete the training and establishes the content of the
training course, information concerning training to be reported to the Texas
Lottery Commission, and other training program requirements that the Commission
determines to be necessary to promote the fair conduct of bingo and compliance
with the Bingo Enabling Act. The new rule also sets out disciplinary sanctions
for failure to comply with the provisions of the rule.
Rick Sookiasian, Budget Analyst, Texas Lottery Commission has determined
that for each year of the first five-year period the section is in effect
there will no fiscal implications for state or local government as a result
of enforcing or administering the section.
Mr. Sookiasian has also determined that for each year of the first five-year
period the section is in effect there will be no cost to small businesses.
There may be some cost to persons complying with the proposed new section,
such as travel to and from the training site. However, the travel costs will
be minimal because the scheduled training sessions will be held in locations
where the majority of all licenses are issued. There will be no impact on
local employment.
William L. Atkins, Charitable Bingo Operations Director, Texas Lottery
Commission has determined that for each year of the first five-year period
the new section is in effect, the public benefit anticipated as a result of
enforcing or administering the section will be to enhance the knowledge and
understanding by persons designated by licensed authorized organizations of
the statutory and regulatory requirements as it relates to charitable bingo
in Texas.
Comments on the proposal may be submitted to Kimberly L. Kiplin, General
Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630,
or by e-mail to kimberly.kiplin@mail.capnet.state.tx.us.
The new section is proposed under the Government Code, §467.102
and the Occupations Code, §2001.054 which provide the Commission with
the authority to adopt rules for the enforcement and administration of the
laws under the Commission's jurisdiction.
The new section implements Occupations Code, §2001.107.
§402.550.Training Program.
(a)
Notice of Registration and Training
(1)
Notice of the training program will be provided to a licensed
authorized organization at the address provided to the Commission by the licensed
authorized organization as part of the licensed authorized organization's
license file.
(2)
The notice will inform the licensee of the training offered
in the licensee's geographic area and the process to register for the training.
Pre-registration is required in order to attend training. Persons pre-registering
must provide, at a minimum, the name of the individual, name of organization,
eleven-digit taxpayer identification number of the organization, person's
position within the organization, and information on how to contact pre-registrant,
such as telephone number, facsimile number, mailing address, and, if applicable,
E-mail address.
(3)
The training may be cancelled for good cause. In the event
the Charitable Bingo Division cancels the training, notice will be provided
to licensees who have pre-registered for training.
(b)
Persons Required to Complete Training.
(1)
At all times, at least one of the persons designated by
each licensed authorized organization under Occupations Code §2001.102(b)(10)
must be an individual who has completed the training. The training must be
completed biannually.
(2)
Multiple persons from a licensed authorized organization
may attend training. However, the Charitable Bingo Division may limit the
number of persons attending for a licensed authorized organization in order
to ensure persons for other licensed authorized organizations have the opportunity
to attend training.
(3)
Each individual attending the training program must complete
an affidavit of attendance, on a form prescribed by the Commission, which
will include, at a minimum, the legible name, signature, organization name
and eleven-digit taxpayer identification number.
(4)
Each individual attending the training shall, prior to
the beginning of the training, submit on a form prescribed by the Commission,
which will include, at a minimum, the legible name, signature, organization
name and eleven-digit taxpayer identification number, a statement that he/she
has read the Bingo Enabling Act and Charitable Bingo Administrative Rules
in their entirety in preparation for the training. The total number of hours
credited for reading these materials shall be three (3) hours.
(5)
Only licensed authorized organizations holding an annual
license to conduct bingo are required to have an individual attend training.
(6)
Persons who satisfactorily complete the training, as determined
by the Charitable Bingo Division, will receive a Certificate of Completion.
The Certificate of Completion shall, at a minimum, include: the name of the
individual completing the training, the date and location of the training,
and eleven-digit taxpayer identification number of the licensed authorized
organization.
(7)
A person may complete training for one licensed authorized
organization only.
(8)
All expenses or costs of attendance by any member of the
licensed authorized organization may be paid from the licensed authorized
organization's bingo bank account. Expenses and costs are limited to travel,
lodging, meals, and materials. Documentation must be maintained by the licensed
authorized organization supporting the payment of all costs or expenses. All
costs and expenses must be reasonable and necessary.
(c)
The training instructor may remove a person or persons
from the training for good cause.
(d)
Content of the Training. The training program will cover,
at a minimum, the following areas:
(1)
General information about the Bingo Enabling Act and Bingo
rules;
(2)
Conducting a bingo game;
(3)
Record keeping requirements;
(4)
Administration and operation of charitable bingo;
(5)
Promotion of a bingo game;
(6)
Bingo Advisory Committee; and,
(7)
General information about the license application process.
(e)
Time requirements.
(1)
For the individuals required to complete training, each
individual must complete the training every two years.
(2)
A licensed authorized organization is subject to disciplinary
action if at least one of the persons designated under Occupations Code Section
2001.102(b)(10) has not completed the training by September 1, 2001. After
September 1, 2001, at least one of the persons designated under Occupations
Code Section 2001.102(b)(10) must have completed the training within 24 months
prior to the date of expiration of the license.
(3)
After September 1, 2001, an organization that is issued
an annual license to conduct bingo based on the filing of an original application
shall have at least one of the persons designated under Occupations Code Section
2001.102(b)(10) complete the training within 12 months of the issuance of
the license.
(f)
Reporting requirements.
(1)
Each licensed authorized organization must submit to the
Charitable Bingo Division the name(s) of the trained individuals. Any change
in this information must be submitted to Charitable Bingo Division within
10 days after the date of the change.
(2)
Each licensed authorized organization shall maintain for
a period of four years the Certification of Completion in its records.
(3)
Failure to maintain documentation relating to the training
program or failure to timely furnish information requested by the Commission
may subject the licensee to disciplinary action.
(4)
Altering or falsifying any information required to be submitted
or maintained in connection with the training program identified in this rule
may subject the licensee to disciplinary action.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on July 21, 2000.
TRD-200005018
Ridgely C. Bennett
Deputy General Counsel
Texas Lottery Commission
Earliest possible date of adoption: September 3, 2000
For further information, please call: (512) 344-5113
Part 4.
TEXAS DEPARTMENT OF LICENSING AND REGULATION
Chapter 74.
ELEVATORS, ESCALATORS, AND RELATED EQUIPMENT
$100
] fee per application for each waiver or delay.
Chapter 78.
TALENT AGENCIES
Part 6.
TEXAS MOTOR VEHICLE BOARD
Chapter 105.
ADVERTISING
commission
] as a prima facie violation of the Texas
Motor Vehicle Commission Code. [
In addition to a violation of a specific
advertising rule, any other advertising or advertising practices found by
the commission to be false, deceptive, or misleading shall be deemed violations
of the Code, and shall also be considered violations of the general prohibition.
]
state and local
taxes, title, deputy fees, documentary fees, and license fees
] may be
excluded from such price, provided that the advertisement clearly and conspicuously
states that such costs and charges are excluded. However, with respect to
advertisements placed with local media in Texas by a manufacturer or distributor
which include the names of the local dealers for the vehicles advertised,
if the price of a vehicle is stated in the advertisement, such price must
include all costs and charges for the vehicle advertised, including destination
and dealer preparation charges and may exclude only
any registration,
certificate of title, license fees, or an additional registration fee, if
any, charged by a full service deputy as provided by County Road and Bridge
Act, §4.202(g); any taxes; and any other fees or charges that are allowed
or prescribed by law
[
state and local taxes, license, title fees,
deputy fees, and documentary fees
].
the full
] cash price for which
a dealer is willing to sell
the
advertised
vehicle [
will be sold
] to
a retail buyer
[
any and all members
of the buying public
]. The only charges that may be excluded from the
advertised price are:
the full
]
cash price of the vehicle must be disclosed as well as the price of the vehicle
after deducting the incentive. The following is an acceptable format for advertising
a price with rebates and other deductions.
featured
] in advertising.
Commission
] license to sell those vehicles he is holding
himself out as "authorized" to sell.
refund,
discount,
] or other financial inducement or incentive, [
which is
either payable to or
] for the benefit of the purchaser
of a vehicle
if
[
or which reduces the amount to be paid for the vehicle, whether
the amount is the vehicle purchase price, the interest or finance charge expense,
or any other cost accruing to the purchaser any portion of such rebate, refund,
discount, or other financial incentive or inducement is paid or financed or
in any manner contributed to by
] the [
dealer
] selling
dealer contributes in any manner to that program
[
the vehicle
],
unless the advertisement discloses that the dealer's contribution may affect
the final negotiated price of the vehicle. [
With respect to interest
or finance charge expense programs, an advertisement shall disclose that ;participating
dealers contribute to the reduction of the financing rate and that the dealer's
contribution may affect the final negotiated price of the vehicle.
]
(a)
]
refund, discount,
] or other financial
inducement or incentive if the dealer contributes to the [
manufacturer's
or distributor's
] program, unless such advertising discloses that the
dealer's contribution may affect the final negotiated price of the vehicle.
[
With respect to interest or finance charge expense programs, if a participating
dealer contributes to the reduction of a financing rate, then a disclosure
must state that the dealer's contribution may affect the final negotiated
price of the vehicle.
]
or demonstrator
] vehicle,
and the advertisement must show the difference between the dealer's sale price
and the manufacturer's or distributor's total suggested list or retail price.
(b)
]
If an option that is added
by a dealer is not a factory-available option, a savings claim may not be
advertised on that vehicle.
If a dealer has added an option obtained
from the manufacturer or distributor of the motor vehicle [
on which it
is installed
] and disclosed the option and
its
factory suggested
retail price [
of the option
] on a dealership addendum [
sticker
prior to offering the vehicle for sale at retail
], the dealer may advertise
a savings claim on that vehicle as long as
the option is listed, and
the difference is shown between the dealer's
sale
[
selling
] price and the
factory suggested retail
[
total
selling
] price
of the vehicle including
[
as disclosed
on the dealership addendum sticker and discloses
] the factory available
option
[
options added in the advertisement. If an option that is
added by a dealer is not a factory-available option, a savings claim may not
be advertised on that vehicle
].
(c)
] Statements such as "up to,"
"as much as," "from," shall not be used in connection with savings or discount
claims.
(d)
] No person may advertise a savings
claim or discount offer on used motor vehicles.
claim
]
shall not be used in advertising.
commission
] after notice and hearing as provided in the
Texas Motor Vehicle Commission Code.
Part 9.
TEXAS LOTTERY COMMISSION
Chapter 403.
GENERAL ADMINISTRATION