TITLE 22.EXAMINING BOARDS

Part 15. TEXAS STATE BOARD OF PHARMACY

Chapter 281. ADMINISTRATIVE PRACTICE AND PROCEDURES

Subchapter A. GENERAL PROVISIONS

The Texas State Board of Pharmacy adopts repeal of §281.9 concerning Rules Governing Disciplinary Actions and simultaneously adopts new §281.9 concerning Grounds for Discipline for a Pharmacy Technician or a Pharmacy Technician Trainee. The repeal is adopted as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2800). New §281.9 is adopted with changes to the proposed text published in the March 31, 2006, issue of the Texas Register (31 TexReg 2801).

The new rule provides a more organized Chapter 281 regarding disciplinary guidelines and outlines the grounds for discipline for pharmacy technicians and pharmacy technician trainees.

Written comments were received from the Texas Pharmacy Association recommending clarifications to the proposed new rule. The Board agreed with these comments and made appropriate changes.

22 TAC §281.9

The repeal is adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551 - 566 and 568 - 569, Texas Occupations Code). The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by the repeal: Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

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 August 14, 2006.

TRD-200604267

Gay Dodson, R. Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 305-8028


22 TAC §281.9

The new rule is adopted under §551.002 and §554.051 of Texas Pharmacy Act, Chapter 551 - 566 and 568 - 569, Texas Occupations Code. The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051 as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by this rule: Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

§281.9.Grounds for Discipline for a Pharmacy Technician or a Pharmacy Technician Trainee.

(a) For the purposes of the Act, §568.003(a)(2), the term "gross immorality" shall include, but not be limited to:

(1) conduct which is willful, flagrant, and shameless, and which shows a moral indifference to standards of the community;

(2) engaging in an act which is a felony; or

(3) engaging in an act that constitutes sexually deviant behavior.

(b) For the purposes of the Act, §568.003(a)(3), the terms "fraud," "deceit," or "misrepresentation" shall apply to an individual seeking a registration as a pharmacy technician, as well as making an application to any entity that certifies or registers pharmacy technicians, and shall be defined as follows:

(1) "Fraud" means an intentional perversion of truth for the purpose of inducing the board in reliance upon it to issue a registration; a false representation of a matter of fact, whether by words or by conduct, by false or misleading allegations, or by concealment of that which should have been disclosed, which deceives or is intended to deceive the board.

(2) "Deceit" means the assertion, as a fact, of that which is not true by any means whatsoever to deceive or defraud the board.

(3) "Misrepresentation" means a manifestation by words or other conduct which is a false representation of a matter of fact.

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 August 14, 2006.

TRD-200604268

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 305-8028


Subchapter B. GENERAL PROCEDURES IN A CONTESTED CASE

22 TAC §281.20, §281.57

The Texas State Board of Pharmacy adopts the repeal of §281.20, concerning Criminal Convictions and §281.57, concerning Disciplinary Guidelines. The repeal is adopted without changes to the proposal as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2801).

The repeal eliminates the sections of the rules that are no longer necessary since the provisions of these sections are incorporated into new §281.62 and §281.63.

No comments were received regarding the proposal.

The repeal is adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551 - 566 and 568 - 569, Texas Occupations Code). The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by the repeal: Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

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 August 14, 2006.

TRD-200604271

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 305-8028


Subchapter C. DISCIPLINARY GUIDELINES

22 TAC §§281.60 - 281.65

The Texas State Board of Pharmacy adopts new §281.60 concerning General Guidelines, §281.61 concerning Definitions of Discipline Authorized, §281.62 concerning Aggravating and Mitigating Factors, §281.63 concerning Considerations for Criminal Offenses, §281.64 concerning Sanctions for Criminal Offenses, and §281.65 concerning Schedule of Administrative Penalties. The new rules are adopted with changes to the proposed text of §§281.60, 281.61, 281.62, 281.63, 281.64, and 281.65 as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2802). Changes were made to make the rules more clear based on staff recommendations and to be consistent with the Board's disciplinary policies.

New §281.60 provides general guidelines in disciplinary matters. New §281.61 provides definitions of types of discipline authorized and was previously found in §281.9 concerning Rules Governing Disciplinary Actions. New §281.62 provides the aggravating and mitigating factors for consideration by the Board to merit a more severe or more restrictive disciplinary action and was previously found in §281.57 concerning Disciplinary Guidelines. New §281.63 provides guidelines on the eligibility of persons with criminal backgrounds to obtain a license or registration and on the disciplinary actions taken by the Board. New §281.64 provides the sanctions for applicants with criminal offenses. New §281.65 provides the schedule of administrative penalties.

Written comments were received from the Texas Pharmacy Association recommending clarifications to the proposed new rules. The Board agreed with these comments and made appropriate changes.

The new rules are adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551-566 and 568-569, Texas Occupations Code). The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by this rule: Texas Pharmacy Act, Chapters 551-566 and 568-569, Texas Occupations Code.

§281.60.General Guidance.

(a) This subchapter is promulgated to:

(1) promote consistency and guidance in the exercise of sound discretion by the agency in licensure and disciplinary matters;

(2) provide notice as to the types of conduct that constitute violations of the Act and as to the disciplinary action that may be imposed; and

(3) provide a framework of analysis for administrative law judges in making recommendations in licensure and disciplinary matters.

(b) Board's role. The board shall render the final decision in a contested case and has the responsibility to assess sanctions against licensees who are found to have violated the Act. The board welcomes recommendations of administrative law judges as to the sanctions to be imposed, but the board is not bound by such recommendations. A sanction should be consistent with sanctions imposed in other similar cases and should reflect the board's determination of the seriousness of the violation and the sanction required to deter future violations. A determination of the appropriate sanction is reserved to the board. The appropriate sanction is not a proper finding of fact or conclusion of law. This subchapter shall be construed and applied so as to preserve board member discretion in the imposition of sanctions and remedial measures pursuant to the APA and the Act's provisions related to types of discipline and administrative penalties. This subchapter shall be further construed and applied so as to be consistent with the Act, and shall be limited to the extent as otherwise proscribed by statute and board rule.

(c) Purpose of guidelines. These guidelines are designed to provide guidance in assessing sanctions for violations of the Act. The ultimate purpose of disciplinary sanctions is to protect and inform the public, deter future violations, offer opportunities for rehabilitation, if appropriate, punish violators, and deter others from violations. These guidelines are intended to promote consistent sanctions for similar violations, facilitate timely resolution of cases, and encourage settlements.

(1) The standard sanctions outlined in the subchapter apply to cases involving a single violation of the Act, and in which there are no aggravating or mitigating factors that apply. The board may impose more restrictive sanctions when there are multiple violations of the Act. The board may impose more or less severe or restrictive sanctions, based on any aggravating and/or mitigating factors listed in section 281.62 (relating to Aggravating and Mitigating Factors) that are found to apply in a particular case.

(2) The standard and minimum sanctions outlined in the subchapter are applicable to first time violators. The board shall consider revoking the person's license if the person is a repeat offender.

(3) The maximum sanction in all cases is revocation of the licensee's license, which may be accompanied by an administrative penalty of up to $5,000 per violation. Each day the violation continues is a separate violation.

(4) Each statutory violation constitutes a separate offense, even if arising out of a single act.

§281.61. Definitions of Discipline Authorized.

For the purpose of the Act, §565.051 and §568.0035:

(1) "Probation" means the suspension of a sanction imposed against a license during good behavior, for a term and under conditions as determined by the board.

(2) "Reprimand" means a public and formal censure against a license.

(3) "Restrict" means to limit, confine, abridge, narrow, or restrain a license for a term and under conditions determined by the board.

(4) "Revoke" means a license is void and may not be reissued; provided, however, upon the expiration of 12 months from and after the effective date of the order revoking a pharmacist license, application may be made to the board by the former licensee for the issuance of a license upon the successful completion of any examination required by the board.

(5) "Suspend" means a license is of no further force and effect for a period of time as determined by the board.

(6) "Retire" means a license has been withdrawn and is of no further force and effect.

§281.62.Aggravating and Mitigating Factors.

(a) Aggravation. The following may be considered as aggravating factors so as to merit more severe or more restrictive action by the board:

(1) patient harm and the severity of patient harm;

(2) economic harm to any individual, entity, or the environment, and the severity of such harm;

(3) increased potential for harm to the public;

(4) attempted concealment of the conduct which serves as a basis for disciplinary action under the Act;

(5) premeditated conduct which serves as a basis for disciplinary action under the Act;

(6) intentional conduct which serves as a basis for disciplinary action under the Act;

(7) motive for conduct which serves as a basis for disciplinary action under the Act;

(8) prior conduct of a similar or related nature;

(9) disciplinary actions taken by any regulatory agency of the federal government or any state;

(10) prior written warnings or written admonishments from any government agency or official regarding statutes or regulations pertaining to the conduct which serves as a basis for disciplinary action under the Act;

(11) violation of a board order;

(12) failure to implement remedial measures to correct or mitigate harm from the conduct which serves as a basis for disciplinary action under the Act;

(13) lack of rehabilitative potential or likelihood for future conduct of a similar nature; and

(14) relevant circumstances increasing the seriousness of the conduct which serves as a basis for disciplinary action under the Act.

(b) Extenuation and Mitigation. The following may be considered as extenuating and mitigating factors so as to merit less severe or less restrictive action by the board:

(1) absence of patient harm;

(2) absence of economic harm to any individual or entity;

(3) absence of environmental harm;

(4) absence of potential harm to the public;

(5) self-reported and voluntary admissions of the conduct which serves as a basis for disciplinary action under the Act;

(6) absence of premeditation to commit the conduct which serves as a basis for disciplinary action under the Act;

(7) absence of intent to commit the conduct which serves as a basis for disciplinary action under the Act;

(8) motive;

(9) absence of prior conduct of a similar or related nature;

(10) absence of a disciplinary actions taken by any regulatory agency of the federal government or any state;

(11) implementation of remedial measures to correct or mitigate harm from the conduct which serves as a basis for disciplinary action under the Act;

(12) rehabilitative potential;

(13) prior community service and present value to the community;

(14) relevant circumstances reducing the seriousness of the conduct which serves as a basis for disciplinary action under the Act; and

(15) relevant circumstances lessening responsibility for the conduct which serves as a basis for disciplinary action under the Act.

§281.63.Considerations for Criminal Offenses.

(a) The purpose of this section is to establish guidelines and criteria on the eligibility of persons with criminal backgrounds to obtain a license or registration from the board and on the disciplinary actions taken by the board. The section applies to criminal convictions and to deferred adjudication community supervisions or deferred dispositions, as authorized by the Act, for all types of licenses and registrations.

(b) The board may suspend, revoke, or impose other authorized disciplinary action on a current license or registration, disqualify a person from receiving a license or registration, or deny to a person the opportunity to be examined for a license or registration because of a person's conviction or deferred adjudication of a crime that serves as a ground for discipline under the Act, and that directly relates to the duties and responsibilities of a licensee, a registrant, or of an owner of a pharmacy. This subsection applies to persons who are not imprisoned at the time the board considers the conviction or deferred adjudication.

(c) The board shall revoke a license or registration upon the imprisonment of the licensee, the registrant, or the owner of a pharmacy following a felony conviction or deferred adjudication, or revocation of felony community supervision, parole, or mandatory supervision.

(d) A person in prison is not eligible for a license or registration.

(e) An applicant for a license or registration from the board shall disclose in writing to the board any conviction or deferred adjudication against him or her at the time of application. A current licensee or registrant shall disclose in writing to the board any conviction or deferred adjudication against him or her at the time of renewal.

(f) In considering whether a criminal conviction or deferred adjudication directly relates to the occupation of a licensee or a registrant, or the operation of a pharmacy, the board shall consider:

(1) the nature and seriousness of the crime;

(2) the relationship of the crime to the purposes for requiring a license or registration to engage in the occupation of the licensee or registrant, or the operation of a pharmacy;

(3) the extent to which a license or registration might afford the licensee or registrant an opportunity to repeat the criminal activity in which the person had been involved; and

(4) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of the licensee or registrant.

(g) In reaching a decision regarding the type of disciplinary sanction to impose on a license or registration, the board shall also determine the person's fitness to perform the duties and discharge the responsibilities of a licensee or registrant based on:

(1) the extent and nature of the person's past criminal activity;

(2) the age of the person at the time of the commission of the crime;

(3) the amount of time that has elapsed since the person's last criminal activity;

(4) the conduct and work activity of the person prior to and following the criminal activity;

(5) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and

(6) other evidence of the person's present fitness, including letters of recommendation from:

(A) prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the person;

(B) the sheriff and chief of police in the community where the person resides; and

(C) any other persons in contact with the convicted person.

(h) A person with a conviction or deferred adjudication shall:

(1) to the extent possible, secure and provide to the board the recommendations of the prosecution, law enforcement, and correctional authorities specified in subsection (g)(6) of this section;

(2) cooperate with the board by providing the information required by this section, including proof that he or she has:

(A) maintained a record of steady employment, as evidenced by salary stubs, income tax records or other employment records for the time since the conviction or deferred adjudication and/or release from imprisonment;

(B) supported his or her dependents, as evidenced by salary stubs, income tax records or other employment records for the time since the conviction or deferred adjudication and/or release from imprisonment, and a letter from the spouse or other parent;

(C) maintained a record of good conduct as evidenced by letters of recommendation, absence of other criminal activity or documentation of community service since conviction or deferred adjudication; and

(D) paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases in which he or she has been convicted, as evidenced by certified copies of a court release or other documentation from the court system that all monies have been paid.

(i) The following crimes relate to board licensees or registrants. The commission of each indicates an inability or a tendency for the person to be unable to perform or to be unfit for licensure or registration, because violation of such crimes indicates a lack of integrity and respect for one's fellow human being and the community at large. The direct relationship to a license or registration is presumed when the crime occurs in connection with the practice of pharmacy or the operation of a pharmacy.

(1) practicing or operating a pharmacy without a license or registration and other violations of the Pharmacy Act;

(2) deceptive business practices under the Texas Penal Code;

(3) medicare or medicaid fraud;

(4) a misdemeanor or felony offense under the Texas Penal Code involving:

(A) murder;

(B) assault;

(C) burglary;

(D) robbery;

(E) theft;

(F) sexual assault;

(G) injury to a child;

(H) injury to an elderly person;

(I) child abuse or neglect;

(J) tampering with a governmental record;

(K) forgery;

(L) perjury;

(M) failure to report abuse;

(N) bribery;

(O) harassment;

(P) insurance claim fraud;

(Q) solicitation of professional employment under the Penal Code §38.12(d) or Occupations Code, Chapter 102; or

(R) mail fraud;

(5) delivery, possession, manufacture, or use of, or dispensing or prescribing a controlled substance, dangerous drug, or narcotic; or

(6) other misdemeanors or felonies which serve as grounds for discipline under the Act, including violations of the Penal Code, Titles 4, 5, 6, 7, 8, 9, and 10, which indicate an inability or tendency for the person to be unable to perform as a licensee or registrant, or to be unfit for licensure or registration, if action by the board will promote the intent of the Pharmacy Act, board rules including this chapter, and Occupations Code, Chapter 53.

§281.64.Sanctions for Applicants with Criminal Offenses.

(a) The guidelines for disciplinary sanctions apply to criminal convictions and to deferred adjudication community supervisions or deferred dispositions, as authorized by the Act, for applicants for all types of licenses and registrations issued by the board. The board considers criminal behavior to be highly relevant to an individual's fitness to engage in pharmacy practice.

(b) The sanctions imposed by the guidelines can be used in conjunction with other types of disciplinary actions, including administrative penalties, as outlined in this section.

(c) The following sanctions apply to applicants with the criminal offenses described below:

(1) Criminal offenses which require the individual to register with the Department of Public Safety as a sex offender under Chapter 62, Code of Criminal Procedure - denial;

(2) Felony offenses:

(A) Drug-related offenses, such as those listed in Chapter 481 or 483, Health and Safety Code:

(i) Offenses involving manufacture, delivery, or possession with intent to deliver:

(I) Currently on probation - denial;

(II) 0-5 years since conviction - denial;

(III) 6-10 years since conviction - denial;

(IV) 11-20 years since conviction - denial;

(V) Over 20 years since conviction - 5 years probation;

(ii) Offenses involving possession, fraud, or theft of drugs:

(I) Currently on probation - denial;

(II) 0-5 years since conviction - evaluation by a mental health professional indicating the individual is safe to engage in pharmacy practice and 5 years probation;

(III) 6-10 years since conviction - evaluation by a mental health professional indicating the individual is safe to engage in pharmacy practice and 3 years probation;

(IV) 11-20 years since conviction - 2 years probation;

(V) Over 20 years since conviction - 1 year probation;

(B) Offenses involving sexual contact or violent acts, or offenses considered to be felonies of the first degree under the Texas Penal Code:

(i) Currently on probation - denial;

(ii) 0-5 years since conviction - denial;

(iii) 6-10 years since conviction - denial;

(iv) 11-20 years since conviction - 5 years probation;

(v) Over 20 years since conviction - 1 year probation;

(C) Other felony offenses:

(i) Currently on probation - denial;

(ii) 0-5 years since conviction - 5 years probation;

(iii) 6-10 years since conviction - 3 years probation;

(iv) 11-20 years since conviction - 2 years probation;

(v) Over 20 years since conviction - 1 year probation;

(3) Misdemeanor offenses:

(A) Drug-related offenses, such as those listed in Chapter 481 or 483, Health and Safety Code:

(i) Offenses involving manufacture, delivery, or possession with intent to deliver:

(I) Currently on probation - denial;

(II) 0-10 years since conviction - 5 years probation;

(III) Over 10 years since conviction - 3 years probation;

(ii) Offenses involving possession, fraud, or theft of drugs:

(I) 0-5 years since conviction - evaluation by a mental health professional indicating the individual is safe to engage in pharmacy practice and 5 years probation;

(II) 6-10 years since conviction - evaluation by a mental health professional indicating the individual is safe to engage in pharmacy practice and 3 years probation;

(B) Intoxication and alcoholic beverage offenses as defined in the Texas Penal Code, if two such offenses occurred in the previous ten years

(i) 0-5 years since conviction - evaluation by a mental health professional indicating the individual is safe to engage in pharmacy practice and 5 years probation;

(ii) 6-10 years since conviction - evaluation by a mental health professional indicating the individual is safe to engage in pharmacy practice and 3 years probation;

(C) Other misdemeanor offenses involving moral turpitude:

(i) 0-5 years since conviction - 2 years probation;

(ii) 6-10 years since conviction - reprimand;

(d) When an applicant has multiple criminal offenses or other violations, the board shall consider imposing additional more severe types of disciplinary sanctions, as deemed necessary.

§281.65.Schedule of administrative penalties.

In disciplinary matters, the board may assess an administrative penalty in addition to any other disciplinary action in the circumstances and amounts as follows:

(1) The following violations by a pharmacist may be appropriate for disposition with an administrative penalty with or without additional sanctions or restrictions:

(A) failure to provide patient counseling: $1,000;

(B) failure to conduct a drug regimen review or inappropriate drug regimen reviews provided by §291.33(c)(2)(A): $1,000;

(C) failure to clarify a prescription with the prescriber: $1,000;

(D) failure to properly supervise or improperly delegating a duty to a pharmacy technician: $1,000;

(E) failure to identify the dispensing pharmacist on required pharmacy records: $500;

(F) failure to maintain records of prescriptions: $500;

(G) failure to respond or failure to provide all requested records within the time specified in a board audit of continuing education records: $100 per hour of continuing education credit not provided;

(H) failure to provide or providing false or fraudulent information on any application, notification, or other document required under this Act, the Dangerous Drug Act, or Controlled Substances Act, or rules adopted pursuant to those Acts: $1,000;

(I) shortages of prescription drugs following an accountability audit: up to $5,000;

(J) dispensing a prescription drug pursuant to a forged, altered, or fraudulent prescription: up to $5,000;

(K) dispensing unauthorized prescriptions: up to $5,000;

(L) dispensing controlled substances or dangerous drugs to an individual or individuals in quantities, dosages, or for periods of time which grossly exceed standards of practice, approved labeling of the federal Food and Drug Administration, or the guidelines published in professional literature: up to $5,000;

(M) violating the reporting provisions of an Order of the Board: $500 - $1,000;

(N) failure to report or to assure the report of a malpractice claim: up to $1,000;

(O) failure to respond within the time specified on a warning notice to such warning notice issued as a result of a compliance inspection or responding to a warning notice as a result of a compliance inspection in a manner that is false or misleading: up to $1,000;

(P) practicing pharmacy with a delinquent license: $250 - $1,000;

(Q) operating a pharmacy with a delinquent license: $1,000 - $5, 000;

(R) allowing an individual to perform the duties of a pharmacy technician without a valid registration: $250 - $1,000;

(S) failure to comply with the requirements of the Official Prescription Program: up to $1,000;

(T) aiding and abetting the unlicensed practice of pharmacy, if the pharmacist knew or reasonably should have known that the person was unlicensed at the time: up to $5,000;

(U) a conviction or deferred adjudication for a misdemeanor or felony, which serves as a ground for discipline under the Act: up to $5,000;

(V) unauthorized substitutions: $1,000;

(W) false or fraudulent claims to third parties for reimbursement of pharmacy services: up to $5,000;

(X) sale, purchase, or trade or offer to sell, purchase, or trade of misbranded prescription drugs or prescription drugs beyond the manufacturer's expiration date: up to $1,000;

(Y) sale, purchase, or trade or offer to sell, purchase, or trade of prescription drug samples as provided by §281.7 (a)(27) of this title (relating to Grounds for Discipline for a Pharmacist License): up to $1,000;

(Z) failure to keep, maintain or furnish an annual inventory as required by §291.17: $1,000;

(AA) failure to obtain training on the preparation of sterile pharmaceutical compounding: $1,000;

(BB) failure to maintain the confidentiality of prescription records: $1,000 - $5,000;

(CC) failure to inform the board of any notification or information required to be reported by the Act or rules: $250 - $500.

(2) The following violations by a pharmacy may be appropriate for disposition with an administrative penalty with or without additional sanctions or restrictions:

(A) failure to provide patient counseling: $1,500;

(B) failure to conduct a drug regimen review or inappropriate drug regimen reviews provided by §291.33(c)(2)(A): $1,500;

(C) failure to clarify a prescription with the prescriber: $1,500;

(D) failure to properly supervise or improperly delegating a duty to a pharmacy technician: $1,500;

(E) failure to identify the dispensing pharmacist on required pharmacy records: $500;

(F) failure to maintain records of prescriptions: $500;

(G) failure to provide or providing false or fraudulent information on any application, notification, or other document required under this Act, the Dangerous Drug Act, or Controlled Substances Act, or rules adopted pursuant to those Acts: $1,000;

(H) shortages of prescription drugs following an accountability audit: up to $5,000;

(I) dispensing a prescription drug pursuant to a forged, altered, or fraudulent prescription: up to $5,000;

(J) dispensing unauthorized prescriptions: up to $5,000;

(K) dispensing controlled substances or dangerous drugs to an individual or individuals in quantities, dosages, or for periods of time which grossly exceed standards of practice, approved labeling of the federal Food and Drug Administration, or the guidelines published in professional literature: up to $5,000;

(L) violating the reporting provisions of an Order of the Board: $1,000 - $5,000;

(M) failure to report or to assure the report of a malpractice claim: up to $1,000;

(N) failure to respond within the time specified on a warning notice to such warning notice issued as a result of a compliance inspection or responding to a warning notice as a result of a compliance inspection in a manner that is false or misleading: up to $1,000;

(O) allowing a pharmacist to practicing pharmacy with a delinquent license: $250 - $1,000;

(P) operating a pharmacy with a delinquent license: $1,000 - $5,000;

(Q) allowing an individual to perform the duties of a pharmacy technician without a valid registration: $250 - $1,000;

(R) failure to comply with the requirements of the Official Prescription Program: up to $1,000;

(S) aiding and abetting the unlicensed practice of pharmacy, if an employee of the pharmacy knew or reasonably should have known that the person engaging in the practice of pharmacy was unlicensed at the time: up to $5,000;

(T) a conviction or deferred adjudication for a misdemeanor or felony which serves as a ground for discipline under the Act: up to $5,000;

(U) unauthorized substitutions: $1,000;

(V) false or fraudulent claims to third parties for reimbursement of pharmacy services: up to $5,000;

(W) possessing or engaging in the sale, purchase, or trade or the offer to sell, purchase, or trade of misbranded prescription drugs or prescription drugs beyond the manufacturer's expiration date: up to $1,000;

(X) possessing or engaging in the sale, purchase, or trade or the offer to sell, purchase, or trade of prescription drug samples as provided by §281.8 (b)(2) of this title (relating to Grounds for Discipline for a Pharmacy License): up to $1,000;

(Y) failure to keep, maintain or furnish an annual inventory as required by §291.17: $1,000;

(Z) failure to obtain training on the preparation of sterile pharmaceutical compounding: $1,500;

(AA) failure to maintain the confidentiality of prescription records: $1,000 - $5,000;

(BB) failure to inform the board of any notification or information required to be reported by the Act or rules: $250 - $500.

(3) The following violations by a pharmacy technician may be appropriate for disposition with an administrative penalty with or without additional sanctions or restrictions:

(A) failure to respond or failure to provide all requested records within the time specified in a board audit of continuing education records: $30 per hour of continuing education credit not provided;

(B) failure to provide or providing false or fraudulent information on any application, notification, or other document required under this Act, the Dangerous Drug Act, or Controlled Substances Act, or rules adopted pursuant to those Acts: $500;

(C) shortages of prescription drugs following an accountability audit: up to $5,000;

(D) violating the reporting provisions of an Order of the Board: $250 - $500;

(E) failure to report or to assure the report of a malpractice claim: up to $500;

(F) performing the duties of a pharmacy technician without a valid registration: $250 - $1,000;

(G) a conviction or deferred adjudication for a misdemeanor or felony, which serves as a ground for discipline under the Act: up to $5,000;

(H) false or fraudulent claims to third parties for reimbursement of pharmacy services: up to $5,000;

(I) failure to obtain training on the preparation of sterile pharmaceutical compounding: $1,000;

(J) failure to maintain the confidentiality of prescription records: $1,000 - $5,000;

(K) failure to inform the board of any notification or information required to be reported by the Act or rules: $100 - $250.

(4) Any of the violations listed in this section may be appropriate for disposition by the administrative penalties in this section in conjunction with any other penalties in §281.61 of this chapter.

(5) Each day a violation continues or occurs is a separate violation for purposes of imposing a penalty or fine.

(6) The amount, to the extent possible, shall be based on:

(A) the seriousness of the violation, including the nature, circumstances, extent, and gravity of any prohibited act, and the hazard or potential hazard created to the health, safety, or economic welfare of the public;

(B) the economic harm to property or the environment caused by the violation;

(C) the history of previous violations;

(D) the amount necessary to deter a future violation;

(E) efforts to correct the violation; and

(F) and other matter that justice may require.

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 August 14, 2006.

TRD-200604269

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 305-8028


Subchapter C. RULEMAKING

22 TAC §§281.71 - 281.76

The Texas State Board of Pharmacy adopts repeal of §281.71, concerning Prerequisites to Adopting, Repealing, or Amending Rules, §281.72, concerning Effective Date of Rules, §281.73, concerning Petition for Adoption of Rules, §281.74, concerning President To Preside, §281.75, concerning Amendments and the Repeal of Conflicting Rules, and §281.76, concerning Effective Date. The repeal provides a more organized Chapter 281 regarding disciplinary guidelines. The repeal is adopted without changes to the proposal as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2807).

The repealed rules are adopted as new rules in Subchapter D of Chapter 281 and are published elsewhere in this issue of the Texas Register .

No comments were received regarding the proposal.

The repeal is adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551 - 566 and 568 - 569, Texas Occupations Code). The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by the repeal: Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

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 August 14, 2006.

TRD-200604272

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 305-8028


Subchapter D. RULEMAKING

22 TAC §§281.71 - 281.76

The Texas State Board of Pharmacy adopts new §281.71 concerning Prerequisites to Adopting, Repealing, or Amending Rules, §281.72 concerning Effective Date of Rules, §281.73 concerning Petition for Adoption of Rules, §281.74 concerning President to Preside, §281.75 concerning Amendments and the Repeal of Conflicting Rules, §281.76 concerning Effective Date. The new §§281.71, 281.72, 281.73, 281.75, and 281.76 are adopted without changes to the proposed text as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2808). The new §281.74 is adopted with changes to the proposed text as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2808).

The new rules provide a more organized Chapter 281 regarding disciplinary guidelines and were previously found in Subchapter C of Chapter 281. The Board also proposes the change of the name of the Subchapter from "Miscellaneous" to "Rulemaking".

Written comments on the proposed rules were received from the Texas Pharmacy Association (TPA). The TPA comment points out a typographic error in the title of §281.74. The Board agrees and has modified the title to read "President to Preside."

The new rules are adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551-566 and 568-569, Texas Occupations Code). The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by the new rule: Chapters 551-566 and 568-569, Texas Occupations Code.

§281.74.President To Preside.

The president shall be the chairman and preside over all meetings of the board at which the president is present unless otherwise provided for under this chapter. In the absence of the president, the vice president shall preside. In the vice president's absence, one of the other Board members shall preside as acting chairman. The acting chairman shall be selected by mutual agreement of the board members present or, lacking mutual agreement, shall be the member senior in length of service on the board.

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 August 14, 2006.

TRD-200604270

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 305-8028


Subchapter D. MISCELLANEOUS

22 TAC §281.80

The Texas State Board of Pharmacy adopts the repeal of §281.80, concerning Grounds for Discipline for a Pharmacy Technician. The repeal is adopted without changes to the proposal as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2809).

The repeal eliminates a section of the rules that is no longer necessary since the provisions of this section are incorporated as new rules in Subchapter A.

No comments were received regarding the proposal.

The repeal is adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551 - 566 and 568 - 569, Texas Occupations Code). The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by the repeal: Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

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 August 14, 2006.

TRD-200604273

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 305-8028


Chapter 283. LICENSING REQUIREMENTS FOR PHARMACISTS

22 TAC §283.4, §283.7

The Texas State Board of Pharmacy adopts amendments to §283.4 and §283.7 concerning Internship Requirements and Examination Requirements. The amendments are adopted with changes to the proposed text as published in the June 23, 2006, issue of the Texas Register (31 TexReg 5004). A grammatical correction was made.

The amendments require applicants to submit fingerprint information in order for the Board to access criminal history information.

No comments were received.

The amendments are adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551 - 566 and 568 - 569, Texas Occupations Code) and §411.084 of the Government Code. The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act. The Board interprets §411.084 as authorizing the agency to obtain criminal history information from the Federal Bureau of Investigations.

The statutes affected by this rule: Texas Pharmacy Act, Chapters 551 - 566 and 568 - 569, Texas Occupations Code; Chapter 411, Government Code

§283.4.Internship Requirements.

(a) Goals and competency objectives of internship.

(1) The goal of internship is for the pharmacist-intern to attain the knowledge, skills, and abilities to safely, efficiently, and effectively provide pharmaceutical care to individual patients and practice pharmacy under the laws and regulations of the State of Texas.

(2) The following competency objectives are necessary to accomplish the goal of internship in paragraph (1) of this subsection.

(A) Provides drug products. The pharmacist-intern shall acquire competence in determining the appropriateness of prescription drug orders and medication orders; evaluating and selecting products; and assuring the accuracy of the product/prescription dispensing process.

(B) Communicates with patients and/or their care givers about prescription drugs. The pharmacist-intern shall acquire competence in interviewing and counseling patients, and/or their care givers, on drug usage, dosage, packaging, and storage; discussing drug cautions, side effects, and patient conditions; explaining policies on fees and services; relating to patients in a professional manner; and interacting to confirm patient understanding.

(C) Communicates with patients and/or their care givers about nonprescription products, devices, and diagnostic aids. The pharmacist-intern shall acquire competence in interviewing and counseling patients and/or their care givers on conditions and intended drug use; assisting in and recommending drug selection; referring patients to other health professionals; providing information on medical/surgical and home health-care devices and home diagnostic products; and providing poison control treatment information and referral.

(D) Communicates with health professionals and the public. The pharmacist-intern shall acquire competence in obtaining and providing accurate and concise information in a professional manner and using appropriate oral, written, and nonverbal language.

(E) Collaborates with physicians, other health-care professionals, patients and/or their care givers to develop a therapeutic plan which will include monitoring and evaluating drug therapy. The pharmacist-intern shall acquire competence in collaborating with physicians, other health care professionals, patients, and/or their care givers to formulate a therapeutic plan. The pharmacist-intern shall acquire competence in establishing and interpreting data-bases, identifying drug-related problems and recommending appropriate pharmacotherapy specific to patient needs and devising follow-up plans.

(F) Maintains professional-ethical standards. The pharmacist-intern is required to comply with laws and regulations pertaining to pharmacy practice; to learn to apply good professional judgment; to exhibit reliability and credibility in dealing with others; to deal professionally and ethically with colleagues and patients; to demonstrate sensitivity and empathy for patients/care givers; and to maintain confidentiality.

(G) Compounds. The pharmacist-intern shall acquire competence in using acceptable professional procedures; selecting appropriate equipment and containers; appropriately preparing compounded dosage forms; and documenting calculations and procedures.

(H) Retrieves and evaluates drug information. The pharmacist-intern shall acquire competence in selecting best available resources for answering a drug-related request in a timely fashion and in interpreting the information obtained and judging its relevance.

(I) Manages general pharmacy operations. The pharmacist-intern shall develop a general understanding of planning and policy-making. The pharmacist-intern shall have an understanding of drug security, storage and control procedures, and maintaining quality assurance. The pharmacist-intern shall learn to notice and document discrepancies and irregularities, keep accurate records and document actions. The pharmacist-intern shall attend meetings requiring pharmacy representation.

(J) Understands the necessity of participating in public health and professional activities. The pharmacist-intern shall develop basic knowledge and skills needed to become an effective health educator and active participant in public health programs and professional organizations.

(K) Conducts research. The pharmacist-intern may develop research skills to expand and/or refine knowledge in the areas of pharmaceutical sciences or pharmaceutical services. This includes data collection and analysis of scientific, clinical, sociological, and/or economic impacts of pharmaceuticals (including investigational drugs), pharmaceutical care, and patient behaviors, with dissemination of findings to the scientific community and the public.

(b) Hours requirement.

(1) The board requires 1,500 hours of internship for licensure. These hours may be obtained through one of more of the following methods:

(A) in a board approved student internship program, as specified in subsection (c) of this section;

(B) in a board-approved extended-internship program as specified in subsection (d) of this section; and/or

(C) through internship hours approved and certified to the board by another state board of pharmacy.

(2) Pharmacist-interns participating in an internship may be credited no more than 50 hours per week of internship experience.

(3) Internship hours may be used for the purpose of licensure for no longer than two years from the date the internship is completed.

(c) Student Internship Programs.

(1) Texas colleges of pharmacy internship programs.

(A) The board shall review for approval Texas colleges of pharmacy internship programs on or before September 1 of each fiscal year. The purpose of the board review will be to determine if such internship programs demonstrate that the competency objectives listed in subsection (a) of this section are capable of being met by each student-intern completing the internship. The board reserves the right to set conditions relating to the approval of such programs.

(B) The Texas colleges of pharmacy shall determine through examinations that each student-intern completing the college internship program meets the competency objectives listed in subsection (a) of this section.

(C) Internship experience shall be gained under:

(i) a pharmacist licensed by the board and approved as a preceptor by the board;

(ii) a pharmacist licensed in a state other than Texas when working in a federal facility and serving as an instructor for a Texas college-based internship program; or

(iii) a healthcare professional preceptor.

(D) All internship experience shall be approved by the board and shall occur in sites and under conditions which teach one or more of the competency objectives listed in subsection (a) of this section.

(E) Prior to taking the licensure examination any applicant participating in a Texas college-based internship shall complete the requirements of such internship.

(F) Pharmacist-interns completing a board-approved Texas college-based structured internship will be awarded 1,500 hours of internship experience, or the number of hours actually obtained if greater than 1,500. No credit shall be awarded for didactic experience.

(G) No more than 300 hours of the required 1,500 hours may be obtained under a preceptor that is a healthcare professional.

(2) Internship experience acquired by student-interns not in a Texas College of Pharmacy Internship Program.

(A) A person may be designated a student-intern provided he/she meets all of the following requirements:

(i) has made application to the board;

(ii) is enrolled in the professional sequence of a college of pharmacy whose professional degree program has been accredited by ACPE and approved by the board;

(iii) has successfully completed the first professional year and a minimum of 30 credit hours of work towards a professional degree in pharmacy; and

(iv) has met all requirements necessary in order for the Board to access the criminal history records information, including submitting fingerprint information and being responsible for all associated costs.

(B) The terms of the student internship shall be as follows.

(i) The internship shall be gained concurrent with college attendance, which may include:

(I) partial semester breaks such as spring breaks;

(II) between semesters; and

(III) whole semester breaks provided the student-intern attended the college in the immediate preceding semester and is scheduled with the college to attend in the immediate subsequent semester.

(ii) The student internship shall be board-approved and gained in a pharmacy licensed by the board, or a federal government pharmacy participating in a board-approved internship program.

(iii) The student internship shall be in the presence of and under the direct supervision of a board-approved preceptor who is licensed by the board.

(C) None of the internship hours acquired may be substituted for any of the hours required in the Texas college of pharmacy internship program.

(3) Expiration date for student-intern designation. The student-internship remains in effect until the earlier of the following occurs:

(A) the student-intern voluntarily or involuntarily ceases enrollment in a college of pharmacy whose professional degree program has been accredited by ACPE and approved by the board;

(B) the failure of the student-intern to take the NAPLEX and Texas Jurisprudence Examinations within three calendar months after graduation;

(C) upon receipt of the results of the NAPLEX and Texas Jurisprudence Examinations specified in this section.

(d) Extended-internship program.

(1) A person may be designated an extended-intern provided he/she has made application to the board and met one of the following requirements:

(A) passed NAPLEX and the Texas Pharmacy Jurisprudence Examination but lacks the required number of internship for licensure;

(B) applied to the board to take the NAPLEX and Texas Jurisprudence Examinations within three calendar months after graduation and has:

(i) graduated and received a professional degree from a college of pharmacy the professional degree program of which has been accredited by ACPE and approved by the board; or

(ii) completed all of the requirements for graduation and receipt of a professional degree from a college of pharmacy the professional degree program of which has been accredited by ACPE and approved by the board; or

(C) applied to the board to take the NAPLEX and Texas Jurisprudence Examinations within three calendar months after obtaining full certification from the Foreign Pharmacy Graduate Equivalency Commission;

(D) applied to the board for re-issuance of a pharmacist license which has expired for more than two years but less than ten years and has successfully passed the Texas pharmacy jurisprudence examination, but lacks the required number of hours of internship or continuing education required for licensure; or

(E) been ordered by the Board to complete an internship.

(2) In addition to meeting one of the requirements in paragraph (1) of this subsection, an applicant for an extended-internship must meet all requirements necessary in order for the Board to access the criminal history records information, including submitting fingerprint information and being responsible for all associated costs.

(3) The terms of the extended-internship shall be as follows.

(A) The extended-internship shall be board-approved and gained in a pharmacy licensed by the board, or a federal government pharmacy participating in a board-approved internship program.

(B) The extended-internship shall be in the presence of and under the direct supervision of a board-approved preceptor who is licensed by the board.

(4) The extended internship remains in effect until the earlier of the following occurs:

(A) the failure of the extended-intern to take the NAPLEX and Texas Jurisprudence Examinations within three calendar months after graduation or Foreign Pharmacy Graduate Equivalency Commission (FPGEC) certification;

(B) the failure of the extended-intern to pass the NAPLEX and Texas Jurisprudence Examinations specified in this section; or

(C) the failure of the extended-intern to complete the requirements for licensure within two years after passing the required examination(s).

(5) An applicant for licensure who has completed less than 500 hours of internship at the time of application shall complete the remainder of the 1,500 hours of internship and have the preceptor certify that the applicant has met the objectives listed in subsection (a) of this section.

(e) Pharmacist-intern identification.

(1) The board shall provide the pharmacist-intern written documentation of his or her designation as a pharmacist-intern. This written documentation serves as identification and authorization to perform the duties of a pharmacist-intern as described in §283.5 of this title (relating to Pharmacist-Intern Duties).

(2) Pharmacist-interns shall keep this written documentation with them at all times they are serving as a pharmacist-intern and make it available for inspection by board agents.

(3) All pharmacist-interns shall wear an identification tag or badge which bears the person's name and identifies him or her as a pharmacist-intern.

(f) Pharmacist-intern Notification Requirement. A pharmacist-intern shall notify the board in writing within 10 days of a change of address, giving the old and new address.

§283.7.Examination Requirements.

Each applicant for licensure by examination shall pass the Texas Pharmacy Jurisprudence Examination and the NAPLEX. The examination requirements shall be as follows:

(1) Prior to taking the required examination, the applicant shall meet:

(A) the educational and age requirements as set forth in §283.3 of this title (relating to Educational and Age Requirements) and

(B) all requirements necessary in order for the Board to access the criminal history record information, including submitting fingerprint information and being responsible for all associated costs.

(2) All applicants shall pass NAPLEX, which includes, at a minimum, the following subject areas:

(A) chemistry;

(B) mathematics;

(C) pharmacy;

(D) pharmacology; and

(E) practice of pharmacy.

(3) Effective October 1, 1979, the following requirements apply.

(A) To pass NAPLEX, an applicant shall make the following grades:

(i) a minimum grade of 60 on chemistry, mathematics, pharmacy, and pharmacology test;

(ii) a minimum grade of 75 on the practice of pharmacy test; and

(iii) a minimum average grade of 75 on the NAPLEX.

(B) Should the applicant fail to achieve a minimum grade of 60 in any of the tests set out in paragraph (2)(A)-(D) of this section or fail to achieve a minimum grade of 75 in the practice of pharmacy test or fail to achieve a minimum average grade of 75 in the NAPLEX, such applicant, in order to be licensed, is required to retake all tests until such time as the minimum average grades are achieved.

(4) Effective June 1, 1986, the following requirements apply.

(A) To pass the NAPLEX, an applicant shall make a minimum average grade of 75.

(B) Should the applicant fail to achieve a minimum average grade of 75 in the NAPLEX, such applicant, in order to be licensed, shall retake the NAPLEX, as specified in §283.11 of this title (relating to Examination Retake Requirements) until such time as a minimum average grade of 75 is achieved.

(5) To pass the Texas Pharmacy Jurisprudence Examination, an applicant shall make a minimum grade of 75. Should the applicant fail to achieve a minimum grade of 75 on the Texas Pharmacy Jurisprudence Examination, such applicant, in order to be licensed, shall retake the Texas Pharmacy Jurisprudence Examination as specified in §283.11 of this title (relating to Examination Retake Requirements) until such time as a minimum average grade of 75 is achieved.

(6) If the applicant should fail one of the examinations, the grade of the examination which the applicant initially passed may be used for the purpose of licensure by examination for a period of two years from the date of passing the initial examination.

(7) Examination applications and fees as specified in §283.9(a) of this title (relating to Fee Requirements for Licensure by Examination and Reciprocity) shall be received in the board office no later than six weeks prior to the examination date.

(8) Each applicant for licensure by examination utilizing NAPLEX scores transferred from another state shall meet the following requirements for licensure in addition to the requirements set out in paragraphs (1)-(7) of this section.

(A) The applicant shall request NABP to transfer NAPLEX scores to the board. Such request shall be in accordance with NABP policy.

(B) The applicant shall pay the fee set out in §283.9 of this title (relating to Fee Requirements for Licensure by Examination and Reciprocity).

(9) The NAPLEX and Texas Pharmacy Jurisprudence Examination shall be administered in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.) and in accordance with NABP policy.

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 August 14, 2006.

TRD-200604275

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: June 23, 2006

For further information, please call: (512) 305-8028


Chapter 291. PHARMACIES

Subchapter A. ALL CLASSES OF PHARMACIES

22 TAC §291.6

The Texas State Board of Pharmacy adopts amendments to §291.6 concerning Pharmacy License Fees. The amendments are adopted without changes to the proposed text as published in the June 23, 2006, issue of the Texas Register (31 TexReg 5006).

The amendments decrease pharmacy license fees based on revenue projections.

No comments were received.

The amendments are adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551 - 566 and 568 - 569, Texas Occupations Code) The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by this rule: Texas Pharmacy Act, Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

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 August 14, 2006.

TRD-200604277

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: November 1, 2006

Proposal publication date: June 23, 2006

For further information, please call: (512) 305-8028


22 TAC §291.28

The Texas State Board of Pharmacy adopts new §291.28, concerning Patient Access to Confidential Records. The new rule is adopted with changes to the proposed text as published in the June 23, 2006, issue of the Texas Register (31 TexReg 5007). A grammatical error was corrected.

The new rule requires pharmacies to provide patients with their confidential records.

Written comments were received from the National Association of Chain Drug Stores (NACDS). NACDS stated that pharmacies may need up to two business days to provide records maintained at the pharmacy and five business days for records that are stored off-site. The Board disagrees with this comment and believes that records must be made available within the timeframe stated in the proposed rule in order to protect patient safety in a medical emergency. NACDS stated that the fee for providing records should be $25.00 per pharmacy location. The Board agrees with this comment, and notes that the fee is for each licensed pharmacy as stated in the rule. NACDS also requested the Board clarify that a pharmacy may request and receive payment before the information is provided to the patient; or in the alternative, that a pharmacy would not be required to provide the requested information if the patient has an unpaid balance for previous record requests. The Board did not agree with this comment or adopt any amendments with regard to this comment.

The new rule is adopted under §551.002 and §554.051 of the Texas Pharmacy Act (Chapters 551 - 566 and 568 - 569, Texas Occupations Code). The Board interprets §551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets §554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by this rule: Texas Pharmacy Act, Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

§291.28.Patient Access to Confidential Records.

(a) Access to confidential records. A pharmacy shall comply with the request of a patient or a patient's agent to inspect or obtain a copy of the patient's confidential records maintained by the pharmacy, as defined in §551.003(10) of the Act.

(b) Form of request. The pharmacy may require a patient or a patient's agent to make requests for confidential records in writing, provided such a requirement has been communicated to the patient or patient's agent.

(c) Timely action by pharmacy. The pharmacy must respond to a request for confidential records in a timely manner.

(1) The pharmacy must respond to a request for confidential records no later than thirty days after receipt of the request by providing a copy of the records or, with the consent of the patient or patient's agent, a summary or explanation of such information. If the pharmacy is unable to take such action within thirty days of receiving the request, the pharmacy may extend the time for such action by no more than thirty days, provided that:

(A) the pharmacy provides the patient with a written statement of the reasons for the delay and the date by which the pharmacy will respond to the request; and

(B) the pharmacy shall have only one such extension of time.

(2) The pharmacy must provide confidential records as requested by the patient or the patient's agent by either:

(A) mailing a copy of the records; or

(B) at the patient's request, arranging for a convenient time and place for the individual to inspect or obtain a copy of the records.

(3) Access to confidential records may be expedited at the request of the patient or the patient's agent if there is a medical emergency. The pharmacy must respond to a request for expedited access to confidential records within 24 hours if the records are maintained at the pharmacy or within 72 hours if the records are stored off-site. The pharmacy may charge a reasonable fee, in addition to the fees outlined in subsection (d) of this section, of no more than $25.00 for expediting a request for access to confidential records.

(d) Fees. The pharmacy may charge a reasonable, cost-based fee for providing a copy of confidential records requested by a patient or a patient's agent or, with the consent of the patient or patient's agent, a summary or explanation of such information.

(1) A reasonable fee shall be a charge of no more than $25.00 for the first twenty pages and $0.50 per page for every page thereafter. A reasonable fee shall include only the cost of:

(A) copying, including the cost of supplies for and labor of copying;

(B) postage, when the individual has requested the records be mailed; and

(C) preparing an explanation or summary of the protected health information, if appropriate and consented to by the patient or patient's agent.

(2) If an affidavit is requested certifying that the information is a true and correct copy of the records, a reasonable fee of no more than $15.00 may be charged for executing the affidavit.

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 August 14, 2006.

TRD-200604274

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: September 3, 2006

Proposal publication date: June 23, 2006

For further information, please call: (512) 305-8028


Chapter 295. PHARMACISTS

22 TAC §295.5

The Texas State Board of Pharmacy adopts amendments to §295.5 concerning Pharmacist License or Renewal Fees. The amendments are adopted without changes to the proposed text as published in the June 23, 2006, issue of the Texas Register , (31 TexReg 5008).

The amendments decrease pharmacist license fees based on revenue projections.

No comments were received.

The amendments are adopted under sections 551.002, and 554.051 of the Texas Pharmacy Act (Chapters 551-566 and 568-569, Texas Occupations Code) The Board interprets section 551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets section 554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by this rule: Texas Pharmacy Act, Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

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 August 14, 2006.

TRD-200604278

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: November 1, 2006

Proposal publication date: June 23, 2006

For further information, please call: (512) 305-8028


Chapter 297. PHARMACY TECHNICIANS AND PHARMACY TECHNICIAN TRAINEES

22 TAC §297.4

The Texas State Board of Pharmacy adopts amendments to §297.4 concerning Fees. The amendments are adopted with changes to the proposed text as published in the June 23, 2006, issue of the Texas Register (31 TexReg 5009). A change was made to the pharmacy technician renewal fee to correctly reflect the $2 fee decrease.

The amendments decrease pharmacy technician registration fees based on revenue projections.

No comments were received.

The amendments are adopted under sections 551.002, and 554.051 of the Texas Pharmacy Act (Chapters 551 - 566 and 568 - 569, Texas Occupations Code) The Board interprets section 551.002 as authorizing the agency to protect the public through the effective control and regulation of the practice of pharmacy. The Board interprets section 554.051(a) as authorizing the agency to adopt rules for the proper administration and enforcement of the Act.

The statutes affected by this rule: Texas Pharmacy Act, Chapters 551 - 566 and 568 - 569, Texas Occupations Code.

§297.4.Fees.

(a) Pharmacy technician trainee. There shall be no fee for registration as a pharmacy technician trainee.

(b) Pharmacy technician.

(1) Biennial Registration. The board shall require biennial renewal of all pharmacy technician registrations provided under Chapter 568 of the Act.

(2) Initial Registration Fee.

(A) The fee for initial registration shall be $54 for a two year registration and is composed of the following fees:

(i) $46 for processing the application and issuance of the pharmacy technician registration as authorized by the Act, §568.005;

(ii) a $3 surcharge to fund TexasOnline as authorized by Chapter 2054, Subchapter I, Government Code; and

(iii) $5 surcharge to fund the Office of Patient Protection as authorized by Chapter 101, Subchapter G, Occupations Code.

(B) The initial registration fee shall be prorated based on the assigned expiration date.

(3) Renewal Fee. The fee for biennial renewal of a pharmacy technician registration shall be $51 and is composed of the following:

(A) $46 for processing the application and issuance of the pharmacy technician registration as authorized by the Act, §568.005;

(B) a $3 surcharge to fund TexasOnline as authorized by Chapter 2054, Subchapter I, Government Code; and

(C) $2 surcharge to fund the Office of Patient Protection as authorized by Chapter 101, Subchapter G, Occupations Code.

(c) Duplicate or Amended Certificates. The fee for issuance of a duplicate or amended pharmacy technician trainee registration certificate or pharmacy technician registration renewal certificate shall be $20.

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 August 14, 2006.

TRD-200604279

Gay Dodson, R.Ph.

Executive Director/Secretary

Texas State Board of Pharmacy

Effective date: November 1, 2006

Proposal publication date: June 23, 2006

For further information, please call: (512) 305-8028


Part 21. TEXAS STATE BOARD OF EXAMINERS OF PSYCHOLOGISTS

Chapter 463. APPLICATIONS AND EXAMINATIONS

22 TAC §463.5

The Texas State Board of Examiners of Psychologists adopts amendments to §463.5 concerning Application File Requirements without changes to the proposed text as published in the June 16, 2006, issue of the Texas Register (31 TexReg 4826).

The amendments are being adopted to clarify to applicants that references submitted for the purpose of licensure cannot be by persons who are related to the applicant within the second degree of affinity or within the second degree by consanguinity.

The adopted amendments will help to ensure that reference letters are provided by objective individuals.

No comments were received regarding adoption of the amendments.

The amendments are adopted under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

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 August 14, 2006.

TRD-200604282

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Effective date: September 3, 2006

Proposal publication date: June 16, 2006

For further information, please call: (512) 305-7700


22 TAC §463.28

The Texas State Board of Examiners of Psychologists adopts new rule §463.28 concerning Emergency Limited Temporary Licensure without changes to the proposed text as published in the June 16, 2006, issue of the Texas Register (31 TexReg 4827).

The new rule is being adopted to allow the Board adjust the requirements for limited temporary licensure for out-of-state licensees desiring to temporarily provide psychological services in the case of a declared national disaster.

The adopted new rule will clarify emergency limited temporary licensure.

No comments were received regarding adoption of the new rule.

The new rule is adopted under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

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 August 14, 2006.

TRD-200604283

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Effective date: September 3, 2006

Proposal publication date: June 16, 2006

For further information, please call: (512) 305-7700


Chapter 471. RENEWALS

22 TAC §471.5

The Texas State Board of Examiners of Psychologists adopts amendments to §471.5 concerning Updated Information Requirements without changes to the proposed text as published in the June 16, 2006, issue of the Texas Register (31 Tex Reg 4827).

The amendments are being adopted to clarify the information that is needed on the annual renewal form.

The adopted amendments will clearly enforce the rule and clarify the information that is needed on the annual renewal form.

No comments were received regarding adoption of the amendments.

The amendments are adopted under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.

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 August 14, 2006.

TRD-200604284

Sherry L. Lee

Executive Director

Texas State Board of Examiners of Psychologists

Effective date: September 3, 2006

Proposal publication date: June 16, 2006

For further information, please call: (512) 305-7700


Part 23. TEXAS REAL ESTATE COMMISSION

Chapter 533. PRACTICE AND PROCEDURE

22 TAC §533.34, §533.35

The Texas Real Estate Commission (TREC) adopts amendments to §533.34, concerning Disapproval of an Application for a License or Registration and §533.35, concerning Revocation or Other Action against a License or Registration. Section 533.35 is adopted with changes to the proposed text as published in the July 7, 2006, issue of the Texas Register (31 TexReg 5434). Section 533.34 is adopted without changes and will not be republished.

The amendment to §533.34 clarifies that notice of disapproval will not be provided to a sponsoring broker of an applicant for a salesperson license as such licenses are issued as inactive with no sponsoring broker. The amendment to §533.35 clarifies that a hearing concerning a revocation or other disciplinary action against a licensee will be held at a time and place designated by the Commission except in cases involving a violation of §1101.652(a)(3) or (b), Texas Occupations Code. In those cases, the hearing shall be held pursuant to §1101.657(d) if the licensee requests. The difference between the rule as proposed and the rule as adopted was the addition of a period to correct a typographical error. The amendments are adopted in connection with TREC's on-going review of its rules and are generally intended to update and to clarify the rules to be consistent with Chapter 1101, Occupations Code, and recent revisions thereto.

The reasoned justification for the amendments to the rules is consistency with the underlying statutory requirements.

No comments were received regarding the amendments to the rules as proposed.

The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

The statute affected by this adoption is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the adopted amendments.

§533.35.Revocation or Other Action against a License or Registration.

A license or registration issued by the Texas Real Estate Commission may not be revoked or other action taken against the license or registration except after notice and opportunity for hearing pursuant to statutory obligation and these sections. If a real estate salesperson is a respondent, the commission also will notify the salesperson's sponsoring broker of the hearing. If an apprentice inspector or real estate inspector is a respondent, the commission also will notify the sponsoring professional inspector of the hearing. The hearing will be held at a time and place designated by the commission, except as provided by §1101.657, Texas Occupations Code, for a violation of §1101.652(a)(3) or (b). Pursuant to §1101.657, upon the written request of a respondent licensed as a Texas real estate broker or real estate filed within five days after receipt of the notice of hearing, the hearing will be held in the county where the principal place of business of the respondent is maintained. If the respondent is a licensee or registrant who does not reside within this state, the hearing may be held in any county within this state.

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 August 8, 2006.

TRD-200604075

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Effective date: August 28, 2006

Proposal publication date: July 7, 2006

For further information, please call: (512) 465-3900


Chapter 535. GENERAL PROVISIONS

Subchapter R. REAL ESTATE INSPECTORS

22 TAC §535.217

The Texas Real Estate Commission (TREC) adopts the repeal of §535.217, concerning Dishonest Conduct as Grounds for Disciplinary Action without changes as published in the May 19, 2006, issue of the Texas Register (31 TexReg 4158) and will not be republished. The subjects addressed in the repealed section are covered in new amendments to §535.220 that the Commission is simultaneously adopting as part of the Real Estate Inspector Committee recommendations regarding Professional Conduct and Ethics. As the new subsections comprehensively address the subjects of the repealed rule as well implement the recommendations, repeal of the rule is necessary to avoid confusion and repetition.

The reasoned justification for the repeal is clarification of inspector standards of real estate inspector professional conduct and ethics.

No comments were received regarding the repeal as proposed.

The repeal is adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

The statute affected by this repeal is Texas Occupations Code, Chapter 1102. No other statute, code or article is affected by the repeal.

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 August 8, 2006.

TRD-200604079

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Effective date: August 28, 2006

Proposal publication date: May 19, 2006

For further information, please call: (512) 465-3900


22 TAC §535.220

The Texas Real Estate Commission (TREC) adopts amendments to §535.220, concerning Professional Conduct and Ethics with changes to the proposed text as published in the May 19, 2006, issue of the Texas Register (31 TexReg 4158).

The changes to the adopted text that were not in the proposed text replace the term "an earnest money" with "a real estate" and the last "or" with "of" in §535.220(e)(6), and clarify subsection (e)(3), the provision addressing referral activity relating to advertising. New subsection (e)(8) permits an inspector to engage in legal promotional or educational activities to or with a settlement service provider that are not conditioned on the referral of business and permits an inspector to purchase advertising and promotion at market rates from any person in any publication, event or media. The revisions to the rules as adopted do not change the nature or scope so much that they could be deemed different rules. The rules as adopted do not affect individuals other than those contemplated by the rules as proposed. The rules as adopted do not impose more onerous requirements that the proposed versions and do not materially alter the issues raised in the proposed rules. Changes in the adopted rules respond to public comments or otherwise reflect nonsubstantive variations from the proposed rules to clarify their intent and improve style and readability.

Section 535.220 as adopted prohibits contingency arrangements in cases where compensation depends on specific findings or on closing or settlement; prohibits an inspector from paying a fee to or receiving a fee from a "settlement service provider" as defined in the rule for the referral of inspections, for inclusion on a list of preferred providers, or for inclusion on a list of inspectors contingent on other financial agreements; permits an inspector to engage in legal promotional or educational activities to or with a settlement service provider that are not conditioned on the referral of business; permits an inspector to purchase advertising and promotion at market rates from any person in any publication, event or media; prohibits an inspector from accepting a fee for referring services that are not settlement services or other products to the inspector's client without the consent of the inspector's client; clarifies that an inspector may pay or receive a fee for services actually rendered; prohibits an inspector from conducting repair for a fee of any systems or components of property covered by the Standards of Practice on which the inspector has performed an inspection under a real estate contract, lease, or exchange of real property within 12 months of the date of the inspection; and prohibits an inspector from disclosing inspection results or client information without prior approval from the client, except for observed immediate safety hazards to occupants exposed to such hazards.

There were three comments to the amendments as proposed. One of the commenters was the Texas Association of Realtors (TAR). The first commenter approved of the revisions to §535.220. The second commenter pointed out that the term "earnest money contract" is not generally used to refer to the standard real estate contracts promulgated by the Commission. The Commission agrees with the commenter and has changed §535.220 as described above. TAR suggested that the Commission add subsection (e)(8) as more fully described above. The Commission agrees with TAR.

The reasoned justification for the amendments is full transparency and disclosure of the cost of obtaining a real estate inspection in connection with the purchase or sale of real property.

The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

The statute affected by this adoption is Texas Occupations Code, Chapter 1102. No other statute, code or article is affected by the adopted amendments.

§535.220.Professional Conduct and Ethics.

(a) The responsibility of those persons who engage in the business of performing independent inspections of improvements in real estate transactions imposes integrity beyond that of a person involved in ordinary commerce. Each inspector must maintain a high standard of professionalism, independence, objectivity and fairness while performing inspections in a real estate transaction. Each inspector licensee must also uphold, maintain, and improve the integrity, reputation, and practice of the home inspection profession.

(b) The relationship between an inspector and a client should at a minimum meet the following guidelines.

(1) In accepting employment as an inspector, the inspector should protect and promote the interest of his client to the best of his ability and knowledge, recognizing that the client has placed his trust and confidence in the inspector.

(2) In the interest of his client and his profession, the inspector should endeavor always to maintain and increase his level of knowledge regarding new developments in the field of inspection.

(3) The inspector should conduct his business in a manner that will assure his client of the inspector's independence from outside influence and interests that might compromise his ability to render a fair and impartial opinion regarding any inspection performed.

(c) The relationship between an inspector and the public should at a minimum meet the following guidelines.

(1) The inspector should deal with the general public at all times and in all manners in a method that is conducive to the promotion of professionalism, independence and fairness to himself, his business and the inspection industry.

(2) The inspector should attempt to assist the general public in recognizing and understanding the need for inspections, whether the inspector is selected to perform such inspection or not.

(3) The inspector accepts the duty of protecting the public against fraud, misrepresentation or unethical practices in the field of real estate inspections.

(d) The relationship of the inspector with another inspector should at a minimum meet the following guidelines.

(1) The inspector should bind himself to the duty of maintaining fairness and integrity in all dealings with other inspectors and other persons performing real estate inspections.

(2) The inspector should cooperate with other inspectors to insure the continued promotion of the high standards of the real estate inspection profession and pledges himself to the continued pursuit of increasing competence, fairness, education and knowledge necessary to achieve the confidence of the public.

(3) If an inspector has knowledge of a possible violation of the rules of the Texas Real Estate Commission or Texas Occupations Code, Chapter 1102, the inspector should report the possible violation to the Texas Real Estate Commission.

(e) An inspector shall comply with the following requirements.

(1) An inspector shall not inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the closing or settlement of a property.

(2) In this section "settlement service" means any service provided in connection with a prospective or actual settlement, and "settlement service provider" includes, but is not limited to, any one or more of the following:

(A) Federally related mortgage loan originator;

(B) Mortgage broker;

(C) Title service provider;

(D) Attorney;

(E) A person who prepares documents, including notarization, delivery, and recordation;

(F) Appraiser;

(G) Inspector;

(H) Settlement agent;

(I) A person who provides mortgage insurance services;

(J) A person who provides services involving hazard, flood, or other casualty insurance or homeowner's warranties;

(K) Real estate agent or broker; and

(L) A person who provides any other services for which a settlement service provider requires a borrower or seller to pay.

(3) An inspector shall not pay or receive a fee or other valuable consideration to or from any other settlement service provider for, but not limited to, the following:

(A) the referral of inspections;

(B) inclusion on a list of inspectors, preferred providers, or similar arrangements; or

(C) inclusion on lists of inspectors contingent on other financial agreements.

(4) An inspector shall not receive a fee or other valuable consideration, directly or indirectly, for referring services that are not settlement services or other products to the inspector's client without the client's consent.

(5) This section does not prohibit an inspector from paying or receiving a fee or other valuable consideration, such as to or from a contractor, for services actually rendered.

(6) An inspector shall not accept employment to repair, replace, maintain or upgrade systems or components of property covered by the Standards of Practice under this Subchapter on which the inspector has performed an inspection under a real estate contract, lease, or exchange of real property within 12 months of the date of the inspection.

(7) Inspectors shall not disclose inspection results or client information without prior approval from the client. Inspectors, at their discretion, may disclose observed immediate safety hazards to occupants exposed to such hazards when feasible.

(8) This subsection does not prohibit an inspector from:

(A) engaging in legal promotional or educational activities to or with settlement service providers that are not conditioned on the referral of business; or

(B) purchasing advertising and promoting the inspector at market rates from any person in any publication, event or media.

(f) The inspector should make a reasonable attempt to cooperate with other professionals and related tradespersons at all times and in all manners in a method that is conducive to the promotion of professionalism, independence and fairness to himself, his business, and the inspection industry.

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 August 8, 2006.

TRD-200604080

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Effective date: August 28, 2006

Proposal publication date: May 19, 2006

For further information, please call: (512) 465-3900


Chapter 543. RULES RELATING TO THE PROVISIONS OF THE TEXAS TIMESHARE ACT

22 TAC §§543.3, 543.4, 543.12

The Texas Real Estate Commission (TREC) adopts amendments to §543.3, concerning Fees, §543.4, concerning Forms, and new §543.12, concerning Renewal of Registration. Sections 543.3 and 543.12 are adopted without changes to the proposed text as published in the July 7, 2006, issue of the Texas Register (31 TexReg 5435). Section 543.4 is adopted with changes to the forms adopted by reference, therefore the text of the rule will be republished.

The amendments and new rule are adopted to implement revisions to the Texas Timeshare Act, Chapter 221, Texas Property Code enacted during the 79th Legislative Session, Regular Session, by House Bill 1045. The amendments provide for renewal requirements for registered timeshare properties, including a renewal form, and renewal fees. The amendments amend the Abbreviated Registration of a Timeshare Plan form to request additional information from the developer about the jurisdiction in which the plan is already registered and to fix some typographical errors in the form. The proposed Renewal of Registration form was changed to correct typographical errors. Part I.F. of the proposed Abbreviated Registration of a Timeshare Plan form was changed to make it clear that the developer must provide additional information about any one jurisdiction in which the plan is already registered. The developer need not provide the information for all jurisdictions in which the plan is registered.

The revisions to the rules and forms as adopted do not change the nature or scope so much that they could be deemed different rules or forms. The rules as adopted do not affect individuals other than those contemplated by the rules as proposed. The rules as adopted do not impose more onerous requirements that the proposed versions and do not materially alter the issues raised in the proposed rules. Changes in the adopted rules and forms adopted by reference reflect nonsubstantive variations from the proposed rules and forms to clarify their intent and improve style and readability.

The reasoned justification for the amendments to the rules is consistency and implementation of the underlying statutory requirements.

No comments were received regarding the amendments to the rules as proposed.

The amendments are adopted under the Texas Property Code, §221.024, which authorizes the Texas Real Estate Commission to prescribe and publish forms and adopt rules necessary to carry out the provisions of The Texas Timeshare Act.

The statute which is affected by this adoption is the Texas Property Code, Chapter 221. No other statute, code or article is affected by the amendments and new rule.

§543.4.Forms.

(a) The Texas Real Estate Commission adopts by reference revised Application to Register a Timeshare Plan, Form TSR 1-4, approved by the commission in 2005. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.state.tx.us.

(b) The Texas Real Estate Commission adopts by reference revised Application to Amend a Timeshare Registration, Form TSR 2-4, approved by the commission in 2005. This form is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.state.tx.us.

(c) The Texas Real Estate Commission adopts by reference Application for Abbreviated Registration of a Timeshare Plan, Form TSR 3-1, approved by the commission in 2006. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.state.tx.us.

(d) The Texas Real Estate Commission adopts by reference Application for Pre-sale Authorization, Form TSR 4-0, approved by the commission in 2005. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.state.tx.us.

(e) The Texas Real Estate Commission adopts by reference Escrow Surety Bond, Form TSR 5-0, approved by the commission in 2005. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.state.tx.us.

(f) The Texas Real Estate Commission adopts by Construction Surety Bond, Form TSR 6-0 approved by the commission in 2005. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.state.tx.us.

(g) The Texas Real Estate Commission adopts by reference Consent to Service of Process, Form TSR 7-0 approved by the commission in 2005. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.state.tx.us .

(h) The Texas Real Estate Commission adopts by reference Application to Renew the Registration of a Timeshare Plan, Form TSR 8-0, approved by the Commission in 2006. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, www.trec.state.tx.us.

(i) Applicants may reproduce the forms adopted by the commission from printed copies and by computer. With the exception of the changes to the forms which are permitted by this section, the applicant shall reproduce the text of the forms verbatim and the spacing, length of blanks, fonts and placement of text on the page must appear to be substantially similar to that used by the commission in the printed version of the form.

(j) When using the forms, the applicant must comply with the following:

(1) The applicant may select the type and size of the fonts, provided the fonts are no smaller than those used in the printed version of the form adopted by the commission.

(2) The forms must be printed on letter sized ("8 1/2 by 11") paper.

(3) Whether a form is reproduced by computer or is preprinted by the applicant, the applicant may allocate such space for narrative responses where noted as the applicant deems necessary or may attach additional pages containing narrative responses to the application.

(4) The applicant may renumber the pages of a form to correspond with any changes made necessary due to adjusting the space for narrative responses.

(5) The applicant may not alter the text of a promulgated application form.

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 August 8, 2006.

TRD-200604077

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Effective date: August 28, 2006

Proposal publication date: July 7, 2006

For further information, please call: (512) 465-3900