Proposed Sections
Before an agency may permanently adopt a new or amended section, or repeal an 
existing section, a proposal detailing the action must be published in the Texas 
Register at least 30 days before any action may be taken. The 30-day time period 
gives interested persons an opportunity to review and make oral or written 
comments on the section. Also, in the case of substantive sections, a public 
hearing must be granted if requested by at least 25 persons, a governmental 
subdivision or agency, or an association having at least 25 members.
Symbology in proposed amendments. New language added to an existing section is 
indicated by the use of bold text. [Brackets] indicate deletion of existing 
material within a section.
TITLE 1. ADMINISTRATION
Part IV. Office of the Secretary of State
Chapter 81. Voter Registration
278>1 TAC sec.81.11
Note: A proposed amendment to 1 TAC sec.81.11 concerning disbursement of funds 
under the Texas Election Code, Chapter 19, will appear in the November 1, 1991, 
Texas Register, Volume 16, No. 81.)
    
TITLE 7. BANKING AND SECURITIES
Part I. State Finance Commission
Chapter 3. Banking Section
Subchapter E. Banking House and Other Facilities
7 TAC sec.3.91
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the State Finance 
Commission or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Finance Commission of Texas proposes the repeal of  s3.91, concerning 
establishment of branch banks by state chartered banks. The new language will be 
enacted simultaneously with the repeal of this section.
Brian R. Herrick, assistant general counsel has determined that for the first 
five-year period the repeal is in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
repeal. There will be no local employment impact.
Mr. Herrick, also has determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated as a result of enforcing the 
repeal will be an opportunity for an administrative hearing on all branch 
applications. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the repeal 
as proposed.
Comments on the proposal may be submitted to Brian R. Herrick, Assistant General 
Counsel, Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 
78705-4294.
The repeal is proposed under the Texas Constitution, Article 16, sec.16(c) and 
Texas Civil Statutes, Article 342-113, which provides the State Finance 
Commission with the authority to promulgate rules not inconsistent with the 
Constitution and statutes of this state.
sec.3.91. Establishment of Branch Banks (Including Automated or Unmanned Teller 
Machines) and Drive-in Facilities.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9112999
Ann Graham
General Counsel
Texas Department of Banking
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 475-1300
       
The Finance Commission of Texas proposes new sec.3.91, concerning establishment 
of branch banks by state chartered banks. The existing language will be repealed 
simultaneously with the adoption of this regulation.
Brian R. Herrick, assistant general counsel, has determined that for the first 
five-year period the section is in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
section. There will be no local employment impact.
Mr. Herrick also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be an opportunity for an administrative hearing on all branch 
applications. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the section 
as proposed.
Comments on the proposal may be submitted to Brian R. Herrick, Assistant General 
Counsel, Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 
78705-4294.
The new section is proposed under the Texas Constitution, Article 16, sec.16(c) 
, and Texas Civil Statutes, Article 342-113, which provides the State Finance 
Commission with the authority to promulgate rules not inconsistent with the 
Constitution and statutes of this state.
sec.3.91. Establishment of Branch Banks (Including Mobile Branches and Automated 
or Unmanned Teller Machines) and Drive-in Facilities.
(a)  General. Applications for branch bank, mobile branch, unmanned teller 
machines, and drive-in facilities filed by state-chartered banks pursuant to 
Texas Civil Statutes, Article 342-903, shall be filed with the commissioner on 
forms prescribed by the commissioner.
(b) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise.
(1) Branch-Branch bank or branch includes any additional bank office or mobile 
branch, except an unmanned teller machine, at which deposits are received, 
checks are paid, or money is lent.
(2) Facility-Facility includes an unmanned teller machine or drive-in facility.
(3) ATM (Automated Teller Machine or Unmanned Teller Machine)-An ATM is an 
automated device, established (i.e., owned or rented) by a state bank at a 
location separate from the main office or a branch, that:
(A) takes deposits; or
(B) disburses cash drawn against:
(i) a customer's deposit account; or
(ii) a customer's pre-approved loan account;
(C) is a machine other than a telephone, capable of being operated solely by a 
customer, by which a customer may communicate to the bank:
(i) an instruction to transfer funds between one or more accounts maintained by 
the customer with the bank but not as between the customer's account and an 
account maintained in the bank or in some other financial institution by some 
other customer;
(ii) an instruction to apply funds against an indebtedness of the customer to 
the bank; or
(iii) a request for information concerning the balance of the account of the 
customer with the bank.
(4) Drive-in facility-A drive-in facility means a facility offering banking 
services solely to persons who remain outside of the facility. State banks 
desiring to establish a drive-in facility pursuant to Texas Civil Statutes, 
Article 342-903, shall follow the application procedure set out in subsection 
(e) of this section. No application will be required to establish a drive-in 
facility that will be located within 1,000 feet of the nearest wall of the 
principal banking building or existing branch facility; however, 30 days' 
written notice to the commissioner is required prior to the commencement of 
operations.
(5)  Mobile branch-A mobile branch is a branch and is a motorized vehicle or 
facility, approved by the commissioner, operating under its own power within 
fixed geographic boundaries.
(c) Commencement of operations. Any application approved under this section 
shall commence operations within a period of 12 months after the date of 
approval unless an extension is granted in writing by the commissioner. Approval 
will automatically expire if no extension is granted prior to the end of the 12 
month period or any applicable extension.
(d) Branch applications. In determining whether to approve an application to 
establish and operate a branch or a drive-in facility filed in accordance with 
applicable laws of this state, the commissioner is guided by the following 
principles: The Texas Department of Banking and the commissioner are responsible 
for maintaining a sound banking system; the Texas Department of Banking and the 
commissioner are responsible for encouraging a bank to help meet the credit 
needs of its entire community, as delineated in its Community Reinvestment Act 
statement; the marketplace normally is the best regulator of economic activity; 
and competition promotes a sound and more efficient banking system that serves 
customers well.
(1) The commissioner may approve branch applications subject to provisions of 
applicable law regarding the establishment of such branches.
(2) The commissioner may deny applications or grant approval subject to 
fulfillment of certain conditions if, in the opinion of the commissioner:
(A) there are significant supervisory concerns with respect to the applicant or 
any affiliated organization;
(B) the applicant's record of helping meet the credit needs of its entire 
community, including low and moderate income neighborhoods, consistent with the 
safe and sound operation of the bank, is less than satisfactory; or
(C) any financial or other business arrangement, direct or indirect, involving 
the proposed branch and bank insiders (directors, officers, employees, and 
shareholders owning or controlling, directly or indirectly, 10% or more of any 
class of the subject bank's voting stock) involves terms or conditions more 
favorable to the insiders than would be available in a comparable transaction 
between unrelated parties.
(3) The commissioner may deny applications or grant approval for the operation 
of a mobile branch subject to the following conditions.
(A)  The operation of a mobile branch shall be limited to those locations where 
the bank could legally establish a permanent branch under state law.
(B)  Each site of operation or mobile facility at all times shall be 
appropriately identified.
(C) The mobile equipment used in the establishment and operation of the branch 
may not remain at the site except during the hours which the branch is open for 
business.
(D) If, in the future, the bank elects to alter service, at any location, or add 
additional service locations, the bank shall give the commissioner at least 30 
days' prior written notice thereof, including the reason for such decision.
(4) If the proposed branch will change the bank's existing community 
delineation, the applicant's board of directors must act upon any material 
change at its first regular meeting after the change, i.e., the establishment of 
the branch. In the application, the bank must indicate the ways it intends to 
vary its lending policy, procedures or services at the proposed branch, if at 
all.
(e)  Branch application procedure. Application forms and instructions may be 
obtained from the Texas Department of Banking, 2601 North Lamar Boulevard, 
Austin, Texas 78705.
(1) Notice of filing of application. The applicant shall publish a notice in a 
newspaper of general circulation in the community in which the applicant 
proposes to establish a branch. If the proposed branch is to be a mobile branch, 
then the notice must be published in the same manner in each community to be 
served by the branch. The notice shall state that a branch application is being 
filed as of the date of notice, and the notice shall contain the name of the 
applicant and the location of the proposed branch or, in the case of a mobile 
branch, the locations to be served. The application shall be placed in the 
United States mail, postage prepaid or delivered to the commissioner on the same 
day the notice is published. A statement containing the date of publication and 
the name and address of the newspaper(s) in which the notice was published, 
shall be furnished with the application.
(2)  Written comments on applications. Within 30 days after notice by 
publication as required herein, any person or entity may submit to the 
commissioner written comments and data on the application. The commissioner may 
extend this 30 day comment period if, in his judgment, the applicant has failed 
to file all required supporting data in time to permit review by interested 
persons or entities or if other extenuating circumstances exist.
(3) Confidential information. A public file shall be established by the Texas 
Department of Banking in the case of each application. That file shall consist 
of the application, supporting data, and supplementary information, except for 
material deemed by the commissioner, in accordance with applicable law, to be 
confidential, such as trade secrets normally not available through commercial 
publication or other information confidential under the Texas Open Records Act, 
the Texas Banking Code or other applicable law. In addition, the public file 
shall contain all data and information submitted by interested persons or 
entities in favor of or opposed to such application, excluding any material 
deemed by the commissioner, in accordance with applicable law, to be 
confidential. Information may be deemed confidential and withheld from the 
public file only upon request of the person or entity submitting the 
information. All factual information submitted to or obtained by the Texas 
Department of Banking staff shall also be made part of the public file, unless 
deemed confidential by the commissioner. In no event shall information required 
by statute or regulation to be treated as confidential be made a part of a 
public file.
(4) Investigation, examination and required information. The commissioner may 
conduct an investigation or examination into the facts underlying an application 
to the extent necessary to reach an informed decision. Additionally, the 
commissioner may require any person or entity submitting an application or any 
affiliated person or entity to submit such information, data, opinion of 
counsel, or other materials as may be specified by the commissioner. Failure to 
comply with such demand of the commissioner may be treated as abandonment of the 
filing to which the information, data, opinion of counsel, or other material 
relates. Fees may be assessed for the investigations or examinations based on 
the actual cost to the Texas Department of Banking.
(f) Establishment of ATMs.
(1) Permanently staffed ATM. An automated device that would otherwise qualify as 
an ATM, but which is permanently staffed (either full or part-time, directly or 
indirectly) by personnel employed by the state applicant, is a branch that 
requires an application pursuant to this section.
(2) ATM established pursuant to Texas Civil Statutes, Article 342-903a. No 
application is required for ATMs established and operated in accordance with the 
provisions of Texas Civil Statutes, Article 342-903a.
(g) Appeal of commissioner's decision. Any decision of the commissioner to grant 
or deny an application for a branch, a drive-in facility or an ATM shall be 
appealable to the commissioner of the Texas Department of Banking by any 
interested party adversely affected by the commissioner's decision. Said appeal 
shall be filed with the commissioner by the adversely affected party within 20 
days of the commissioner's decision and the matter shall be set for public 
hearing before the Texas Department of Banking in accordance with the Department 
of Banking Rules and Regulations, Chapter 13, codified at 7 TAC Chapter 13.
(h) Emergency establishment of a branch. The procedure outlined in this section 
for the approval of ATMs branches shall not apply to the acquisition of a branch 
or ATM by a bank when such acquisition is made in connection with the assumption 
of assets and liabilities of any financial institution deemed by the 
commissioner to be in an unsafe condition.
(i) Branch closing. A bank which maintains a branch, a drive-in facility or a 
permanently staffed ATM and desires to discontinue service at that location and 
close the facility or branch shall give the commissioner 30 days' prior written 
notice of the closure. Such notice shall include the name of the bank, the 
location of the facility or branch to be closed, and the date that the bank will 
cease operations at that location.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9112998
Ann Graham
General Counsel
Texas Department of Banking
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 475-1300
       
Part III. State Banking Board
Chapter 31. Miscellaneous
7 TAC sec.31.5
(Editor's Note: The State Banking Board proposes for permanent adoption the 
amended section it adopts on an emergency basis in this issue. The text of the 
amended section is in the Emergency Rules section of this issue.)
The State Banking Board proposes an amendment to sec.31.5, concerning substitute 
members of the State Banking Board. The amendment to the rule names the deputy 
treasurer as the individual authorized to attend an official meeting of the 
board in the absence of the state treasurer.
Ann Graham, general counsel, has determined that for the first five-year period 
the section is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the section.
Ms. Graham, has determined that the proposed rule will have no local employment 
impact.
Ms. Graham also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be a continued functioning of the board in official meetings in the 
absence of the state treasurer. There will be no effect on small businesses. 
There is no anticipated economic cost to persons who are required to comply with 
the section as proposed.
Comments on the proposal may be submitted to Ann Graham, General Counsel, Texas 
Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705-4294.
The amendment is proposed under Texas Civil Statutes, Article 342-115, which 
provide the State Banking Board with the authority to prescribe by rule, the 
individual who is authorized to sit as a substitute member of the board when the 
state treasurer is unable to personally attend an official meeting of the State 
Banking Board.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 18, 1991.
TRD-9113001
Ann Graham
General Counsel
Texas Department of Banking
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 475-1300
       
TITLE 10. COMMUNITY DEVELOPMENT
Part I. Texas Department of Housing and Community Affairs
Chapter 9. Texas Community Development Program
Subchapter A. Allocation of Program Funds
10 TAC sec.sec.9.2, 9.4, 9.5, 9.6, 9.8
The Texas Department of Housing and Community Affairs (department) proposes new 
sec.sec.9.2, 9.4, 9.5, 9.6, and 9.8, concerning the allocation of Community 
Development Block Grant (CDBG) nonentitlement area funds under the Texas 
Community Development Program. The proposed sections establish the standards and 
procedures by which the department allocates community development, 
planning/capacity building, emergency and urgent need funds to eligible units of 
general local government. The new sections include application requirements, 
regional review committees, citizen participation requirements for applicants 
and contractors, and selection procedures and criteria. The administration of 
the Texas Community Development Program was transferred to the Department from 
the Texas Department of Commerce on September 1, 1991, pursuant to Senate Bill 
41, 72nd Legislature, Second Called Session. The proposed sections are the same 
as the rules that governed the Texas Community Development Program at the Texas 
Department of Commerce as of August 31, 1991.
Ruth Cedillo, interim director, CDBG Division, has determined that for the first 
five-year period the sections are in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
sections.
Ms. Cedillo also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be the equitable allocation of CDBG nonentitlement area funds 
to eligible units of general local government in Texas. There will be no effect 
on small businesses. There is no anticipated economic cost to persons who are 
required to comply with the sections as proposed.
Comments on the proposal may be submitted to Anne Paddock, Interim Assistant 
General Counsel, Texas Department of Housing and Community Affairs, P.O. Box 
12026, Austin, Texas 78711-2026.
The new sections are proposed under Texas Civil Statutes, Article 4413(501), 
sec.2.07, which provides the department with the authority to allocate CDBG 
nonentitlement area funds to eligible counties and municipalities according to 
department rules.
sec.9.2. Community Development Fund.
(a) General provisions. This fund covers housing, public facilities, and public 
service projects. Eligible units of general local government may apply for 
funding of a single purpose project such as housing assistance, sewer 
improvements, water improvements, drainage, roads, or community centers, or for 
a multi-purpose project which consists of any combination of such eligible 
activities.
(1) An applicant may not submit an application under this fund and also under 
the colonia fund or urgent need fund during the same program year if the 
proposed activity under each application is the same or substantially similar.
(2) In addition to the threshold requirements of sec.9.1(h) of this title 
(relating to General Provisions) and the requirements of sec.9.1(n), in order to 
be eligible to apply for community development funds, an applicant must document 
that at least 51% of the persons who would directly benefit from the 
implementation of each activity proposed in the application are of low to 
moderate income.
(b) Funding cycle. This fund is allocated on an annual basis to eligible units 
of general local government pursuant to a regional competition. Applications for 
funding must be received by the Texas Community Development Program by 5 p.m. on 
the date specified in the most recent application guide for this fund.
(c) Allocation plan.
(1) This fund is allocated among the 24 state planning regions established 
pursuant to the Texas Local Government Code, sec.391.003, by a formula based on 
the following factors and weights:
(A) number of persons living in poverty-25%;
(B) percentage of persons living in poverty-25%;
(C)  population-30%;
(D) number of unemployed persons-10%;
(E)  unemployment rate-10%.
(2) Each state planning region is provided with a target allocation of funds for 
applications in its region that are ranked in accordance with a shared scoring 
system involving the department and the regional review committees. Where the 
remainder of the target allocation is insufficient to completely fund the next 
ranked application, the department works with the affected applicant to 
determine whether partial funding is feasible. If partial funding is not 
feasible, the remaining funds from all the target allocations are pooled to fund 
projects from among the highest ranked, unfunded applications from each of the 
24 state planning regions. Selection criteria for such applications will consist 
of the selection criteria scored by the department under this fund. Marginal 
applicants' scores are recomputed based on the applicants competing in the 
marginal pool competition only.
(d)  Selection procedures.
(1) Prior to the submission deadline specified in the most recent application 
guide for this fund, each eligible unit of general local government may submit 
one application for funding under the community development fund to the 
department. Two copies of a single jurisdiction application must be submitted 
and three copies of a joint application. Each applicant must also provide at 
least one copy of its application to the applicant's regional review committee 
within two weeks after the department submission deadline.
(2) Upon receipt of an application, the department staff performs an initial 
review to determine whether the application is complete and whether all proposed 
activities are eligible for funding, if ranked. The results of this initial 
review are provided to the applicant. If not subject to disqualiflcation, the 
applicant may correct any deficiencies identified within 10 calendar days of the 
date of the staff's notification.
(3) Each regional review committee shall hold a scoring meeting in accordance 
with the procedures specified in the department's Regional Review Committee 
Guidebook and in accordance with the procedures and priorities previously 
established by each regional review committee. Each regional review committee 
must provide every applicant within its region with an opportunity to make a 
presentation before the regional review committee. The regional review committee 
will then score the project design factors.
(4) Following the resolution of any appeals from actions of the regional review 
committees as specified in Section 9.8 of this title (relating to Regional 
Review Committees) the department adds scores relating to community distress, 
benefits to low-and moderate-income persons, and minority hiring, project 
impact, and match to the regional review committees' project design scores to 
determine regional rankings. Scores on the factors in these categories are 
derived from standardized data from the United States Census Bureau, Texas 
Employment Commission, and from information provided by the applicant.
(5) Following a final technical review, the department staff makes funding 
recommendations to the State Review Committee.
(6) The funding recommendations of the State Review Committee are then provided 
to the executive director of the department. If the State Review Committee 
recommendations differ from the funding recommendations of a regional review 
committee, the State Review Committee must provide the affected regional review 
committee with a written explanation of its determination. The regional review 
committee may then provide a response to the executive director of the 
department. If there is not a consensus between a regional review committee and 
the State Review Committee, all review comments by all of the parties involved 
in the selection process will be forwarded to the executive director of the 
department.
(7) The executive director of the department reviews the final recommendations 
for project awards and announces the contract awards.
(8) Upon announcement of contract awards, the department staff works with 
recipients to execute the contract agreements. While the award must be based on 
the information provided in the application, the department may negotiate any 
element of the contract with the recipient as long as the contract amount is not 
increased and the level of benefits described in the application is not 
decreased. The level of benefits may be negotiated only when the project is 
partially funded with the remainder of the target allocation within a region.
(e) Selection criteria. The following is an outline of the selection criteria 
used by the department and the regional review committees for scoring 
applications under the community development fund. Seven hundred points are 
available.
(1) Community distress (total-55 points). All community distress factor scores 
are based on the population of the applicant. An applicant that has 125% or more 
of the average of all applicants in its region of the rate on any community 
distress factor, except per capita income, receives the maximum number of points 
available for that factor. An applicant with less than 125% of the average of 
all applicants in its region on a factor will receive a proportionate share of 
the maximum points available for that factor. An applicant that has 75% or less 
of the average of all applicants in its region on the per capita income factor 
will receive the maximum number of points available for that factor:
(A) percentage of persons living in poverty-20;
(B) per capita income-20;
(C) unemployment rate-15.
(2) Benefit to low- and moderate-income persons (total-40 points). An 
application in which at least 60% of the Texas Community Development Program 
funds requested benefit low and moderate income persons receives 40 points.
(3) Percentage of minorities presently employed by the applicant divided by the 
percentage of minority residents within the local community (total-25 points). 
In the event less than 5.0% of the applicant's population base is composed of 
minority residents or the applicant has less than five permanent full-time 
employees, the applicant is assigned either the average score on this factor for 
all applicants in its state planning region, or the score calculated on the 
actual figures, whichever is higher. The terms used in this paragraph are 
defined in the current application guide for this fund.
(4) Project impact (total-170 points). Each application is scored on how the 
proposed project resolves the identified need and the severity of the need 
within the applying jurisdiction. Information submitted in the application or 
presented to the regional review committees is used by a committee composed of 
staff of the department to generate scores on this factor.
(5) Match (total-60 points). An applicant's matching share may consist of one or 
more of the following contributions: cash; in-kind services of equipment use; 
materials or supplies; or land. An applicant's match is considered only if the 
contributions are used in the same target areas for activities directly related 
to the activities proposed in its application; if the applicant demonstrates 
that its matching share has been specifically designated for use in the 
activities proposed in its application; and if the applicant has used an 
acceptable and reasonable method of valuation. The population category under 
which county applications are scored depends on the project type and the 
beneficiary population served. If the project benefits residents of the entire 
county, the total population of the county is used. If the project is for 
activities in the unincorporated area of the county with a target area of 
beneficiaries, the population category is based on the residents of the entire 
unincorporated area of the county. For county applications addressing water and 
sewer improvements in unincorporated areas, the population category is based on 
the actual number of beneficiaries to be served by the project activities. The 
population category under which joint applications are scored is based on the 
combined populations of the joint applicants according to the 1990 census. 
Applications for housing rehabilitation and for affordable new permanent housing 
for low- and moderate-income persons receive the 60 points without including any 
matching funds. This exception is for housing activities only. Sewer or water 
service line/connections are not counted as housing rehabilitation. 
Demolition/clearance and code enforcement, when done in the same target area are 
counted as part of the housing rehabilitation activity. When 
demolition/clearance and code enforcement are proposed without housing 
rehabilitation activities, then the match score is still based on actual 
matching funds committed by the applicant. Applications which include additional 
activities, other than related housing activities, are scored based on the 
percentage of match provided for the additional activities. The terms used in 
this paragraph are further defined in the current application guide for this 
fund.
(A) Applicants with populations equal to or less than 750 according to the 1990 
census:
(i) match equal to or greater than 5% of grant request-60;
(ii) match at least 4% but less than 5% of grant request-40;
(iii) match at least 3% but less than 4% of grant request-20;
(iv) match at least 2% but less than 3% of grant request-10;
(v) match less than 2% of grant request-0.
(B) Applicants with populations equal to or less than 1,500 but over 750 
according to the 1990 census:
(i) match equal to or greater than 10% of grant request-60;
(ii) match at least 7.5% but less than 10% of grant request-40;
(iii) match at least 5.0% but less than 7.5% of grant request-20;
(iv) match at least 2.5% but less than 5.0% of grant request-10;
(v) match less than 2.5% of grant request-0.
(C) Applicants with populations equal to or less than 5, 000 but over 1,500 
according to the 1990 census:
(i) match equal to or greater than 15% of grant request-60;
(ii)  match at least 11. 5% but less than 15% of grant request -40;
(iii) match at least 7. 5% but less than 11.5% of grant request-20;
(iv) match at least 3. 5% but less than 7.5% of grant request-10;
(v) match less than 3.5% of grant request-0.
(D)  Applicants with populations over 5,000 according to the 1990 census:
(i) match equal to or greater than 20% of grant request-60;
(ii) match at least 15% but less than 20% of grant request-40;
(iii) match at least 10% but less than 15% of grant request-20;
(iv) match at least 5.0% but less than 10% of grant request-10;
(v) match less than 5.0% of grant request-0.
(6) Regional scoring factors (total-350 points).
(A) Required factors. Each regional review committee shall use the following two 
factors to score applications in its region.
(i) Project priorities. Each regional review committee shall rank and assign 
points to categories of eligible activities based on the priority of such 
projects in the region. The first priority shall receive at least 100 points.
(ii) Merits of the project. A maximum of 175 points shall be awarded based on 
definitions and criteria adopted by each regional review committee.
(B) Optional factors. Each regional review committee may award points based only 
on the following two factors.
(i)  Continuation of need (total-50). The definitions and criteria used for 
scoring this factor are specified in the most recent regional review committee 
guidebook. A maximum of 50 points are available.
(ii) Local effort. Points shall be awarded based on definitions and criteria 
adopted by each regional review committee.
sec.9.4. Planning/Capacity Building Fund.
(a) General provisions. This fund is intended to provide an opportunity for 
units of general local government to prepare comprehensive community development 
plans, develop strategies, assess needs, and build or improve local capacity to 
undertake future community development projects or to prepare other needed 
planning elements. Eligible units of general local government are to be the 
direct recipients of planning contracts. Units of general local government may 
submit one application for planning funds annually if all previous 
planning/capacity building contracts with the department have been totally 
reimbursed by the department.
(1) A cash match equal to or greater than 20% of the total Texas Community 
Development Program funds requested is required of all applicants having a 
population over 5,000, a cash match equal to or greater than 15% of the total 
Texas Community Development Program funds requested is required of all 
applicants having a population over 1,500 but equal to or less than 5,000, a 
cash match equal to or greater than 10% of the total Texas Community Development 
Program funds requested is required of all applicants having a population over 
750 but equal to or less than 1,500, and a cash match equal to or greater than 
5. 0% of the total Texas Community Development Program funds requested is 
required of all applicants having a population of less than 750. The population 
of an applicant is based on the 1990 census unless an applicant submits a survey 
conducted in accordance with sec.9.1(k) of this title (relating to General 
Provisions). The percentage of match required from a county applicant is based 
on the actual target area population benefitting from the proposed planning 
project. In lieu of providing the cash match specified in this paragraph, and as 
further described in the most recent application guide for this fund, an 
applicant may agree to pay out of its own resources for other eligible planning 
activities described on the matrix included in such application guide.
(2)  In addition to the threshold requirements of  s9.1(h) and the requirements 
of sec.9.1(n), in order to be eligible to apply for planning/capacity building 
funding, an applicant under this section must document that at least 51% of the 
persons in the area who would benefit from the implementation of the proposed 
planning activity are of low and moderate income.
(b) Funding cycle. This fund is allocated on an annual basis to eligible units 
of general local government on a statewide competitive basis. Applications for 
funding must be received by the Texas Community Development Program by 5 p.m. on 
the date specified in the most recent application guide for this fund.
(c)  Selection procedures. Scoring and the recommended ranking of projects is 
done by staff and a committee composed of department staff with input from the 
regional review committees. The application and selection procedures consist of 
the following steps.
(1) Prior to the application deadline, each eligible jurisdiction may submit one 
application for funding under the planning/capacity building fund. An applicant 
may not submit an application under this fund and also under the colonia fund if 
the proposed activity under each application is the same or substantially 
similar. One copy of the application must be provided to the applicant's 
regional review committee and two copies must be submitted to the department.
(2) Upon receipt of an application, the department staff performs an initial 
review to determine whether the application is complete and whether the 
activities proposed are eligible for funding. In those instances where the 
department staff determines that the application is either incomplete or that 
the activities are ineligible for funding, the applicant may correct any 
deficiencies in the application as long as it is resubmitted prior to the 
application deadline. Results of this initial staff review are provided to the 
applicant.
(3) Each regional review committee may, at its option, review and comment on a 
planning/capacity building proposal from a jurisdiction within its state 
planning region. These comments become part of the application file, provided 
such comments are received by the department prior to scoring of the 
applications.
(4)  The department staff and the department staff committee generate scores on 
factors related to planning strategy and products. Each application is scored on 
how the proposed planning activities resolve the identified community 
development needs of the local government. This information, as well as any 
comments made by the regional review committee, are used by the department staff 
committee and department staff to generate scores on the planning strategy and 
products factors.
(5) The department generates scores on selection criteria relating to community 
distress, minority hiring, project design, and planning strategy and products. 
Scores on the factors in these categories are derived from standardized data 
from the Census Bureau, Texas Employment Commission, or from information 
provided by the applicant.
(6) Scores on all factors are totaled to obtain project rankings.
(7) The department staff submits funding recommendations to the State Review 
Committee. The State Review Committee reviews the project rankings and provides 
funding recommendations to the executive director of the department.
(8) The executive director of the department reviews the funding recommendations 
and announces the contract awards.
(9) Upon the announcement of contract awards, the department staff works with 
recipients to execute the contract agreements. The award is based on the 
information provided in the application and on the amount of funding proposed 
for each contract activity based on the matrix included in the most recent 
application guide for this fund.
(d)  Selection criteria. The following is an outline of the selection criteria 
used by the department for selection of the projects under the Planning/Capacity 
Building Fund. Four hundred twenty-five points are available.
(1)  Community distress (total-50 points). All community distress factor scores 
are based on the total population of the applicant:
(A) percentage of persons living in poverty-15;
(B) per capita income-15;
(C) percentage of housing units without some or all plumbing -10;
(D) unemployment rate-10.
(2) Percentage of minorities presently employed by the applicant divided by the 
percentage of minority residents within the local community (total-25 points). 
In the event less than 5. 0% of the applicant's population base is composed of 
minority residents or the applicant has less than five full-time permanent 
employees, the applicant is assigned the average score on this factor for all 
applicants, or the score calculated on its actual figures, whichever is higher. 
The terms used in this paragraph are defined in the current application guide.
(3) Project design (total-100 points).
(A) Program priority (50 points). An applicant chooses its own priorities under 
this scoring factor. All activities are weighted at 10 points apiece. An 
applicant receives 50 points for its first five priorities. Base studies (base 
mapping, housing, land use, population components) are mandatory for those who 
lack these updated studies. An applicant is not limited to requesting only its 
first five priorities. It may also request funds for activities viewed as 
necessary, but no additional points would be available for these activities. 
Applicants with fewer than five priorities or wishing to accomplish fewer than 
five activities receive point consideration for efficient use of grant funds 
under "Planning Strategy and Products" described in the most recent application 
guide for this fund.
(B) Areawide proposals (50 points). An applicant must propose to conduct all 
activities described in its application throughout the entire jurisdiction of 
the applicant to receive the maximum 50 points. An applicant proposing target 
area planning receives zero points.
(4) Planning strategy and products (total-250 points).
(A)  Previous planning (50 points).
(i) An applicant which has not previously received a planning/capacity building 
contract -50 points.
(ii)  An applicant which has received previous planning/capacity building 
funding and demonstrates that at least three previous planning recommendations 
have been implemented, i.e., funds from any source have been spent to implement 
recommendations included in the plans-40.
(iii) An applicant which has participated in the program established under this 
section and demonstrates implementation of some of the planning recommendations, 
regardless of the source of funding, or an applicant which has received previous 
planning/capacity building funding but demonstrates that conditions have changed 
to warrant new planning for the same activities -20.
(B) Proposed planning effort (200 points). The factors considered by a committee 
composed of staff of the department in determining this score are as follows:
(i)  the extent to which findings of any previous planning efforts have been 
implemented;
(ii) how clearly the proposed planning effort will resolve the community needs 
addressed in the application;
(iii)  whether the proposed activities will result in the development of a 
strategy capable of implementation and will be an efficient use of contract 
funds; and
(iv) demonstration of local commitment.
sec.9.5. Emergency Fund.
(a) General provisions. Assistance under this fund is available to units of 
general local government for eligible activities under the Housing and Community 
Development Act of 1974, Title 1, as amended, for the alleviation of an 
emergency situation. To receive emergency assistance under this program 
category, the situation to be addressed with Texas Community Development Program 
funds must be both unanticipated and beyond the control of the local government. 
For example, the collapse of a municipal water distribution system due to lack 
of regular maintenance does not qualify. If the same situation was caused by a 
tornado or flood, the community could apply for emergency funds. An applicant 
may not apply for funding to construct public facilities that did not exist 
prior to the emergency. Additionally, in emergency situations, the Texas 
Community Development Program dollars are to be viewed as gap financing or funds 
of last resort. In other words, the community may only apply to the department 
for funding of those activities for which assistance from other sources is not 
available. Assistance under the emergency fund is provided only if one of the 
following has occurred:
(1) the governor has requested a presidential declaration of a major disaster; 
or
(2)  the governor has declared a state of disaster or emergency.
(b)  Funding cycle. Funds for emergency projects will be awarded throughout the 
program year in response to emergency situations.
(c) Selection procedures. As soon as an area qualifies for emergency assistance, 
the department works with the governor's office and the Emergency Management 
Division of the Texas Department of Public Safety to determine where Texas 
Community Development Program funds can best be utilized. The department then 
contacts the unit of local government selected for funding to negotiate a 
contract.
sec.9.6. Urgent Need Fund.
(a) General provision. Assistance under this fund is provided only to eliminate 
existing water and sewer conditions which pose a serious and immediate threat to 
the health or welfare of the residents of the applicant where other financial 
resources are not available to meet such conditions. A unit of general local 
government that wishes to receive assistance under this fund must submit an 
application, as provided by the department, to the department. There is no 
application deadline. An applicant may not submit an application under this fund 
and also under the community development fund or the colonia fund during the 
same program year if the proposed activity under each application is the same or 
substantially similar. An applicant may submit only one application under this 
fund in any one program year. The department may negotiate the level of funding 
to be provided to an applicant and the scope of work to be performed by the 
applicant.
(b)  Threshold requirements. In addition to the requirements set forth in sec.9. 
1(h) of this title (relating to General Provisions) and the requirements of 
sec.9. 1(n), each of the following requirements must be satisfied in order to be 
eligible for funding under this fund:
(1) the condition which gives rise to the application must have occurred or 
become critical no more than 18 months before the date the application is 
received by the department;
(2)  the condition addressed in the application must have directly resulted in a 
human fatality within the jurisdiction of the applicant, or must have directly 
resulted in illness or injury within the jurisdiction of the applicant as 
documented by the Texas Department of Health, or poses an imminent threat to 
human life or health as documented by the Texas Department of Health or Texas 
Water Commission; and
(3) the applicant must provide the department with evidence that the applicant 
is unable to finance the proposed activity with local funds and that no other 
sources of funding are available.
sec.9.8. Regional Review Committees.
(a) Composition. There is a regional review committee in each of the 24 state 
planning regions. Each committee consists of at least 12 members appointed by 
the governor. Composition of each regional committee reflects geographic 
diversity within the region, difference in population among eligible localities, 
and types of government (general law cities, home rule cities, and counties). 
The chairperson of the committee is also appointed by the governor. Members of 
the committee serve two-year terms. An individual may not serve as a member of a 
regional review committee while serving as a member of the State Community 
Development Review Committee.
(b) Role. Each regional review committee reviews and scores all applications 
submitted from within its region under the Community Development Fund. Each 
regional review committee may review and comment on other Texas Community 
Development Program applications. Each regional review committee sends its 
scores and comments to the department. Regional review committees may elect to 
utilize staff of regional planning commissions to assist with project review 
responsibilities.
(c) General requirements. In the performance of its responsibilities, each 
regional review committee shall comply with all federal and state laws and 
regulations relating to the administration of community development block grant 
nonentitlement area funds including, but not limited to, requirements of this 
subchapter, the scoring procedures specified in the current Regional Review 
Committee Guidebook, and the procedures established by the regional review 
committee under the Texas Community Development Program.
(1) Meetings. Each meeting held by a regional review committee shall conform to 
the following requirements.
(A) The regional review committee shall notify each eligible unit of general 
local government within the regional review committee's state planning region, 
in writing, of the date, time and location of its organizational meeting at 
least five days prior to the meeting. The regional review committee shall notify 
each applicant within its region, in writing, of the date, time and location of 
its scoring meeting at least five days prior to the meeting. The notices must be 
in the format specified by the department in the most recent Regional Review 
Committee Guidebook. The notices must also be published in a regional newspaper 
at least three days prior to the meeting. Articles published in such newspapers 
which satisfy the content and timing requirements of this subparagraph will be 
accepted by the department in lieu of publication of notices.
(B) Each applicant shall be provided with the opportunity to make a presentation 
to the regional review committee at its scoring meeting.
(C) The order of the presentations shall be randomly selected by the regional 
review committee.
(D) All discussions, deliberations, and votes shall be made in public except for 
items which would be specifically exempted under the Texas Open Meetings Act. 
The scoring of applications must occur at the same meeting of the regional 
review committee at which the presentations by applicants are made.
(E) A quorum of a simple majority of the current members of the regional review 
committee, rounded to the nearest whole number, shall be present. Any actions 
taken by a regional review committee in which a quorum was not present shall be 
voidable, provided however, that if a conflict of interest situation has 
required a regional review committee member to excuse himself, thus dropping the 
number of participating members below the simple majority requirement, a quorum 
shall have been considered present.
(2) Conflicts of interest. No member of a regional review committee shall vote 
on an application if the member is on the governing body of the applicant. A 
county judge or county commissioner may not score an application from an 
incorporated city within the county, unless specifically authorized by the 
regional review committee.
(3) Voting. Only appointed members of a regional review committee may vote on an 
action of the regional review committee, provided, however, that a regional 
review committee member may designate an alternate, who must be a local elected 
official, to participate in the regional review committee's deliberations. Each 
regional review committee shall retain all ballots or other voting records used 
by its members. Such records shall be maintained in an accessible location and 
be made available for inspection by the public for a period of one year. Each 
member of a regional review committee shall score each application individually 
and shall sign each of his or her ballots and other voting records or scoring 
sheets. The high and low scores are eliminated and the average of the remaining 
individual scores is the regional review committee's score on each scoring 
factor. Consensus scoring is not permitted.
(4)  Scoring procedures. Each regional review committee must submit its scoring 
procedures to the department for approval before the procedures are disseminated 
to all eligible applicants in its region.
(d) Appeals. An applicant may appeal the actions of the regional review 
committee established in its state planning region by following the procedures 
set forth in this subsection. The department will withhold the running of 
computer scores on community development fund applications for five working days 
after the regional review committee's scoring meeting or until all regional 
appeals, if any, have been resolved, whichever is longer. A regional review 
committee must provide written notification of each appeal to all applicants in 
the region. An applicant that is adversely affected by the action of its 
regional review committee on an appeal, may appeal that action in accordance 
with the procedures specified in this subsection.
(1) An applicant shall notify its regional review committee, in writing, of an 
alleged violation of regional review committee procedures committed by the 
regional review committee within five working days after the date of the 
regional review committee meeting which is the subject of the appeal. The 
applicant shall also send a copy of the appeal to the department. All appeals 
must be based on a specifically identified violation of regional review 
committee procedures.
(2) Within 10 working days after the receipt of an appeal, the regional review 
committee shall notify all the applicants within its region that the regional 
review committee will reconvene to hear the appeal. If a quorum of the regional 
review committee agrees that the alleged procedural violation occurred, the 
regional review committee shall sustain the appeal, make appropriate adjustments 
to regional scores, and notify the department. If a quorum of the regional 
review committee votes to deny the appeal, the regional review committee shall 
provide all applicants in the region and the department with a written statement 
of the basis of its denial.
(3)  If the appeal is resolved, the department runs the computer scores and 
provides funding recommendations to the State Review Committee.
(4) If the appeal is not resolved, the department prepares an appeal file for 
the State Review Committee. The file includes:
(A) the appeal;
(B) the response of the regional review committee;
(C) department staff reports; and
(D) comments of other interested parties.
(5) The State Review Committee shall make one of the following recommendations 
to the executive director of the department:
(A) sustain the appeal and suggest corrective actions; or
(B) reject the appeal and sustain the regional scores.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 23, 1991.
TRD-9113101
Anne O. Paddock
Interim Assistant General Counsel
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 320-9526
       
TITLE 13. CULTURAL RESOURCES
Part VII. State Preservation Board
Chapter 111. Rules and Regulations of the Board
13 TAC sec.111.21
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the State 
Preservation Board or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The State Preservation Board proposes the repeal of sec.111.21, concerning fire 
protection policy. To modify existing Fire Protection Policy for concerns 
relating to construction during the Capitol Preservation Project.
Cynthia Alexander, director of administration and finance, has determined that 
for the first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section.
Ms. Alexander also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section as proposed will be the agency will have met requirements of the Texas 
Government Code, Chapter 443.007, clearly defining the area under the 
responsibility of the board. There will be no effect on small businesses. There 
is no anticipated economic cost to persons who are required to comply with the 
section as proposed.
Comments on the proposal may be submitted to Terri Crowell, State Preservation 
Board, P.O. Box 13286, Austin, Texas 78711.
The repeal is proposed under the Texas Government Code, Chapter 443, which 
provides the State Preservation Board with the authority to adopt rules 
concerning the buildings, their contents, and their grounds.
sec.111.21. Fire Protection Policy.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 22, 1991.
TRD-9113022
Cynthia Alexander
Director of Administration and Finance
State Preservation Board
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-5495
       
The State Preservation Board proposes new sec.111.21, concerning fire protection 
policy. To modify existing Fire Protection Policy for concerns relating to 
construction during the Capitol Preservation Project.
Cynthia Alexander, director of administration and finance, has determined that 
for the first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section.
Ms. Alexander also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the agency will have met requirements of the Texas Government 
Code, Chapter 443.007, clearly defining the area under the responsibility of the 
board. There will be no effect on small businesses. There is no anticipated 
economic cost to persons who are required to comply with the section as 
proposed.
Comments on the proposal may be submitted to Terri Crowell, State Preservation 
Board, P.O. Box 13286, Austin, Texas 78711.
The new section is proposed under the Texas Government Code, Chapter 443, which 
provides the State Preservation Board with the authority to adopt rules 
concerning the buildings, their contents, and their grounds.
sec.111.21. Fire Protection Policy.
(a) Purpose. To establish guidelines for the protection from fire and smoke of 
the Texas Capitol, the Capitol Extension, and the General Land Office and their 
occupants. To create a safe environment for persons performing construction work 
in the buildings and for the public.
(b) Oversight. The policy will be administrated by the Capitol Fire Marshal at 
the direction of the executive director.
(c)  Standard procedures. The Capitol Fire Marshal shall:
(1) perform regular inspections of the premises to identify and correct 
conditions within the buildings which may create fire safety concerns;
(2) oversee routine testing of all fire alarm systems, smoke management systems, 
and fire suppression systems. Such tests shall be performed at least annually 
and as often as needed to assure full operation of all systems in an emergency;
(3) perform regular assessments of all fire evacuation plans and schedule 
regular training and drills for building occupants;
(4) advise the board of any unsafe conditions which exists and cannot be 
routinely corrected;
(5) assure that all trash receptacles are constructed of fire resistant material 
approved by the Underwriters Laboratory (UL) or Factory Mutual System (FM).
(d) Fire watch procedures.
(1) Purpose. To provide safety guidelines for state personnel and outside 
contractor who will be performing work involving open flames, sparks, generation 
of high temperature, or highly combustible materials within or near the 
buildings.
(2) Guidelines. In instances in which construction or repairs involve open 
flames, sparks, or the use of highly combustible materials, a Fire Watch will be 
established. The most current fire safety procedures and standards will be 
applied. Personnel and contractor must meet the requirements established in NFPA 
51-B as a minimum, but other currently accepted fire safety procedures shall 
also apply. Basic procedure shall include, but are not limited to the following:
(A) the area shall be cleared of all removable combustible materials;
(B) the floor shall be swept clean within a minimum of 10 feet of the work area;
(C) wall and floor opening in the area will be appropriately sealed to prevent 
spread to adjacent areas;
(D) ducts to the areas will be sealed or shut down;
(E) fire watchers shall have adequate fire extinguishing equipment readily 
available and shall be trained in their use;
(F) fire watchers shall be trained in the use of the building alarm systems. 
They shall be familiar with the facilities with the fire evacuation plan;
(G) the fire watch shall be maintained after the completion of the work for a 
period of time adequate to assure that most risk remains;
(H) the work site shall be inspected by the fire watcher(s) at two-hour and 
four-hour intervals following the completion of work.
(3) Permits and supervision.
(A)  Projects and contracts of less than $100,000. The Capitol Fire Marshal 
shall issue a permit for any activity involving a potential fire hazard and 
shall implement appropriate fire watch procedures. A permit signed by the Fire 
Marshal shall serve as authorization to proceed. The Fire Marshal shall 
designate trained Fire Watchers to oversee the activity.
(B) Contracts of $100, 000 or more. The contractor shall submit a proposed Fire 
Protection Program for the review and approval of the Capitol Fire Marshal. The 
program shall include fire watch procedures as well as routine fire prevention 
procedures in compliance with this policy and commonly accepted fire prevention 
standards. Upon approval of the Fire Protection Program by the Capitol Fire 
Marshal, the contractor shall assume the responsibility for the implementation 
and oversight of the program with periodic review by the Fire Marshal. The 
contractor shall issue fire watch permits and assume responsibility for 
enforcing this policy.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113023
Cynthia Alexander
Director of Administration and Finance
State Preservation Board
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-5495
       
13 TAC sec.111.26
The State Preservation Board proposes new sec.111.26, concerning use of gift 
shop funds. To establish the use of gift shop funds for preservation projects 
which enhance or protect the Texas Capitol.
Cynthia Alexander, director of administration and finance, has determined that 
for the first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section.
Ms. Alexander also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be that the agency will have met requirements of the Texas 
Government Code, Chapter 443.007, clearly defining the area under the 
responsibility of the board. There will be no effect on small businesses. There 
is no anticipated economic cost to persons who are required to comply with the 
section as proposed.
Comments on the proposal may be submitted to Terri Crowell, State Preservation 
Board, P.O. Box 13286, Austin, Texas 78711.
The new section is proposed under the Texas Government Code, Chapter 443, which 
provide the State Preservation Board with the authority to adopt rules 
concerning the buildings, their contents, and their grounds.
sec.111.26. Use of Gift Shop Funds.
(a) Definition of gift shop funds. Gift shop funds shall be defined as those 
revenues received from the Capitol Gift Shop and deposited in the Capitol Trust 
Fund which is located within the Texas Safekeeping Trust Company managed by the 
State Treasury.
(b) Purpose of gift shop account. The gift shop funds are intended as a source 
of enrichment for the ongoing preservation of the Texas Capitol and the Capitol 
Collections. Funds shall not be expended on salaries or routine operating 
expenses of the agency.
(c) Gift shop funds may be used for identified preservation projects which 
enhance or protect the Texas Capitol. Funds may be used to fund or assist in 
funding the conservation, refinishing, or repair of historical artifacts, art, 
and furnishings in the Texas Capitol.
(d) Reporting. The executive director shall report annually on the use of gift 
shop funds and the remaining balance in the account.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113024
Cynthia Alexander
Director of Administration and Finance
State Preservation Board
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-5495
       
TITLE 16. ECONOMIC REGULATION
Part I. Railroad Commission of Texas
Chapter 3. Oil and Gas Division
Conservation Rules and Regulations
16 TAC sec.3.8
The Railroad Commission of Texas proposes an amendment to 16 TAC sec.3.8 
concerning water protection statewide rule 8. This amendment deletes the salt 
water hauler bond requirement, substitutes a permit application fee, and 
enlarges the scope of the section to require most haulers of oil and gas wastes 
to obtain a permit. The purpose of the amendment is to bring sec.3.8 into 
compliance with the statutory requirements of Senate Bill 1103. The part of the 
amendment that replaces the salt water hauler bond requirement with an annual 
permit application fee was adopted on an emergency basis on August 19, 1991, to 
implement the September 1, 1991, effective date in Senate Bill 1103. The 
requirement that most oil and gas waste haulers must obtain a permit is 
necessary to implement provisions of Senate Bill 1103 which become effective 
January 1, 1992.
The proposed amendment specifically excludes transporters of certain categories 
of oil and gas waste from the hauler permitting requirement. For example, 
hauling of asbestos-containing waste was excluded because other laws adequately 
regulate its transportation. Hauling of inert waste was excluded because it does 
not pose a serious environmental threat. The commission is soliciting comments 
on any other categories of oil and gas wastes that should be exempt from the 
hauler permitting requirements.
Rita E. Percival, systems analyst for the Oil and Gas Division, has determined 
that for the first five-year period the section will be in effect there will be 
fiscal implications as a result of enforcing or administering the section. The 
effect on state government for the first five-year period is an estimated cost 
of $28,900 for Fiscal Year 1992 and $43,800 for Fiscal Year 1993-1996. There 
will be no fiscal implications for local government.
Nina Hutton, staff attorney, has determined that for each year of the first five 
years the section is in effect the public benefit anticipated as a result of 
enforcing the section as amended will be the prevention of pollution from 
improperly handled oil and gas waste. The cost of compliance for small 
businesses as a result of enforcing or administering the section will be an 
estimated $300 a year for each new business as it comes under the provisions of 
the revised rule. The anticipated economic cost to persons who are required to 
comply with the section will be approximately $300 a year for each new business 
that comes under the provisions of the revised rule.
The Railroad Commission invites public comment on the proposed amendment. Please 
submit written comments to Nina Hutton, Staff Attorney, Underground Injection 
Control, Oil and Gas Division, Railroad Commission of Texas, P.O. Box 12967, 
Austin, Texas 78711-2967. The deadline for filing comments is November 28, 1991.
The amendment is proposed under the Oil and Gas Waste Haulers Act, Texas Water 
Code, Chapter 29, as revised by the 72nd Legislature in Senate Bill 1103, which 
provides the Railroad Commission with the authority to adopt rules to govern and 
regulate persons and their operations under the jurisdiction of the Railroad 
Commission.
sec.3.8. Water Protection.
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise.
(1)-(33) (No change.)
<nl>(34) Inert wastes-Nonreactive, nontoxic and essentially insoluble oil and 
gas wastes including but not limited to, concrete, glass, wood metal, wire, and 
trash.
(b)-(e) (No change.)
(f) <nl>Oil and gas waste<ol> [Saltwater] haulers.
(1) A person who transports <nl>oil and gas waste<ol> [saltwater] for hire by 
any method other than by pipeline shall not haul <nl>or <ol> [and] dispose of 
<nl>oil and gas waste except inert waste or asbestos-containing material<ol> 
[water containing salt or other mineralized substances produced by oil and gas 
operations,] off a lease, unit, or other oil or gas property where it is 
<nl>generated <ol> [produced] unless such transporter has qualified for and been 
issued <nl>an oil and gas waste<ol> [a saltwater] hauler permit by the 
commission. <nl>A person who has a saltwater hauler permit does not need to 
apply for an oil and gas waste hauler permit until the person is scheduled to 
file an application for permit renewal.
(A)  Application for <nl>an oil and gas waste<ol> [a saltwater] hauler permit 
will be made on the commission prescribed form and in accordance with the 
instructions thereon, and must be accompanied by:
(i) <nl>the permit application fee required by sec.3.76 of this title (relating 
to Fees Required To Be Filed) (Statewide Rule 78) <ol> [saltwater hauler permit 
bond on the commission prescribed form];
(ii) vehicle identification information to support commission issuance of <nl>an 
approved vehicle list<ol> [a vehicle identification card];
(iii) <nl>an affidavit from the operator of each<ol> [a statement of hauler's 
authority to use a] commission- <nl>permitted<ol> [approved] disposal system 
<nl>the hauler intends to use stating that the hauler has permission to use the 
system<ol>; and
(iv) <nl>a certification by the hauler that the vehicles listed on the 
application are designed so that they will not leak during transportation<ol> 
[submit each truck for inspection by commission district personnel].
(B)  <nl>An oil and gas waste<ol> [A saltwater] hauler permit may be issued for 
a term not to exceed one year, subject to renewal by the filing of an 
application for permit renewal and <nl>the required application fee<ol> [a 
saltwater hauler permit bond] for the next permit period. The term of  <nl>an 
oil and gas waste <ol> [a saltwater] hauler permit will be established in 
accordance with a schedule prescribed by the director to allow for the orderly 
and timely renewal of <nl>oil and gas waste<ol> [saltwater] hauler permits on a 
staggered basis. [The term of any saltwater hauler permit that will expire on 
August 31, 1987, may be extended by the director for up to one year to conform 
the permit term to the prescribed schedule, provided that the permittee has 
filed a saltwater hauler permit bond for the period of the extension.]
(C)  Each <nl>oil and gas waste<ol> [saltwater] hauler shall <nl>operate<ol> 
[conduct his operations] in strict compliance with the instructions and 
conditions stated on the permit issued which provide.
(i) (No change. )
(ii) <nl>Each<ol> [each] vehicle used by a permittee shall be marked on both 
sides and the rear with the permittee's name and permit number in characters not 
less than three inches high. (For the purposes of this permit, "vehicle" means 
any truck tank, trailer tank, tank car, <nl>dump truck, garbage truck,<ol> or 
other container in which <nl>oil and gas waste<ol> [salt water] will be hauled 
by the permittee.)[;]
(iii) <nl>Each vehicle must carry a copy of the permit including those parts of 
the commission-issued attachments listing approved vehicles and approved 
disposal systems that are relevant to that vehicle's activities. This permit 
authority is limited to those vehicles shown on the commission-issued list of 
approved vehicles.<ol> [a vehicle identification card must be obtained from the 
district office and carried at all times with the vehicle described thereon. 
This card will contain the permittee's name, permit number, vehicle description, 
vehicle number, permit authority, and a list of all approved disposal systems 
that the permittee is authorized to use;]
(iv) <nl>This<ol> [this] permit is issued pursuant to the information furnished 
on the application form, and any change in conditions must be reported to the 
commission on an amended application form. The permit authority will be revised 
as required by the amended application<nl>. <ol>[;]
(v) <nl>This<ol> [this] permit authority is limited to [the] hauling, handling, 
and disposal of <nl>oil and gas waste.<ol> [saltwater that is produced in 
connection with the drilling or producing operations of an oil and gas well;]
(vi) <nl>This<ol> [this] permit authorizes the permittee to use only those  
<nl>commission-permitted<ol> [approved] disposal systems for which <nl>the 
permittee<ol> [he] has submitted affidavits from the operators stating  <nl>that 
the permittee<ol> [he] has permission to use the systems <nl>or those other 
disposal facilities for which separate authorization by the commission has been 
granted<ol>.<nl>The <ol> [A list of the] <nl>commission-permitted<ol> systems 
that the permittee is <nl>authorized<ol> to use will be <nl>listed as an 
attachment to the oil and gas waste hauler permit.<ol> [placed on the back of 
the vehicle identification card;]
(vii)  The permittee must file an application for a renewal permit, using 
<nl>the permittee's<ol> [his] assigned permit number, [on or] before the 
expiration date specified in this permit<nl>.<ol> [;]
(viii)  <nl>The<ol> [the] permittee must compile and keep current a list of all 
persons by whom  <nl>the permittee<ol> [he] is hired to haul  <nl>and dispose of 
oil and gas waste<ol> [produced saltwater], and furnish such list to the 
commission upon request.
<nl>(ix) <nl>Each vehicle must be operated and maintained in such a manner as to 
prevent spillage leakage or other escape of oil and gas waste during 
transportation.
<nl>(x) <nl>Each vehicle must be made available for inspection upon request by 
commission personnel.
(2) A record shall be kept by each <nl>oil and gas waste [saltwater] hauler 
showing daily oil and gas waste<ol> [saltwater] hauling operations under the 
permitted authority.
(A)  Such daily record shall be dated and signed by the vehicle driver and [it] 
shall show the following information:
(i) identity of the property from which the <nl>oil and gas waste <ol> [produced 
water] is hauled;
(ii)  identity of the [commission] approved disposal system to which the oil and 
gas waste [water] is delivered;
(iii) the volume of <nl>oil and gas waste <ol> [water] received  <nl>by the 
hauler<ol> at the property where <nl>it was generated<ol> [produced];
(iv) the volume of oil and gas waste [water] transported and delivered by the 
hauler to the approved disposal system.
(B) (No change.)
(C)  Such record shall be kept on file for a period of <nl>three<ol> [two] years 
from the date of operation and recordation.
(g) Record keeping.
(1) <nl>Oil and gas waste<ol> [Produced water]. When <nl>oil and gas <ol> waste 
[produced water] is hauled by <nl>vehicle <ol> [truck] from the lease<nl>, unit, 
or other oil or gas property<ol> where it is <nl>generated <ol> [produced] to an 
off-lease disposal facility, the person <nl>generating<ol> [producing] the 
<nl>oil and gas waste<ol> [water] shall keep, for a period of three [two] years 
from the date of  <nl>generation<ol> [water production], the following records:
(A) identity of the property from which the <nl>oil and gas waste<ol> [produced 
water] is hauled;
(B) identity of the commission-approved disposal  <nl>facility<ol> [system] to 
which the <nl>oil and gas waste<ol> [produced water] is delivered;
(C) name <nl>and<ol>[,] address <nl>of the hauler<ol>, and permit number (WHP 
No.) <nl>if applicable <ol> [of saltwater hauler transporting the water from 
producing lease to disposal facility]; and
(D) volume of <nl>oil and gas waste<ol> [produced water] transported each day 
[from producing lease] to disposal [by saltwater hauler].
(2) Retention of run tickets. A person may comply with the requirements of 
paragraph (l) of this subsection by retaining run tickets or other billing 
information created by the  <nl>oil and gas waste<ol> [saltwater] hauler, 
provided the run tickets or other billing information contain all the 
information required by paragraph (1) of this subsection.
(3) (No change.)
(h)-(i) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113076
Martha V. Swanger
Hearings Examiner
Railroad Commission of Texas
Proposed date of adoption: December 30, 1991
For further information, please call: (512) 463-6977
       
16 TAC sec.3.68
The Railroad Commission of Texas proposes an amendment to sec.3.68, concerning 
pipeline connection, severance, and cancellation of certificates of compliance. 
The proposed amendment outlines procedures for shutting in and sealing wells, 
and cancelling certificates of compliance. The Railroad Commission finds that 
the provisions of Senate Bill 1103, 72nd Legislature, Regular Session, 1991, 
which took effect September 1, 1991, require adoption of the amendment.
Rita E. Percival, systems analyst for the Oil and Gas Division, has determined 
that for the first five-year period the proposed amendment will be in effect, 
there will be fiscal implications as a result of its enforcement or 
administration. The effect on state government for the first five-year period 
revised  s3.68 will be in effect is an estimated cost of $118,500 for fiscal 
year 1992 and $74,500 annually for fiscal years 1993-1996. There will be an 
estimated revenue of $700,000 per year for fiscal years 1992-1996. There will be 
no fiscal implications for local government.
Jamie Nielson, legal division, has determined that for each year of the first 
five years the amended section is in effect, the public will benefit from more 
efficient enforcement by the commission of its statutory authority regarding 
regulation of oil and gas operations. There will be no effect on small 
businesses. There is no anticipated additional economic cost to persons who are 
required to comply with the section.
The Railroad Commission encourages public comment on the proposed amendment. 
Please submit written comments to Jamie Nielson, Legal Division-Oil and Gas 
Section, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. 
The deadline for filing comments is 5 p.m., November 29, 1991. The docket number 
is 20-96,795.
The Railroad Commission proposes the amendment under the Texas Natural Resources 
Code, sec.sec.81.051, 81.052, 85.042, 85.202, 86.041, and 86.042, which provide 
the Railroad Commission with the authority to adopt rules to govern and regulate 
persons and their operations under the jurisdiction of the Railroad Commission.
sec.3.68. Pipeline [-] Connection [- Severance]<nl>; Cancellation of Certificate 
of Compliance.
(a) (No change.)
(b) The commission may <nl>shut in and seal any well, and <ol> cancel any 
certificate of compliance if it appears that the operator of a well has violated 
or is violating, in connection with the operation of the well, any of the oil, 
gas, or geothermal resource conservation laws or any of the <nl>permits, <ol> 
rules, [regulations,] or orders of the commission made thereunder. <nl>Upon 
receipt of information that indicates operations are being conducted in 
violation of a state statute or a commission permit, rule or order, the 
commission may send a notice letter to the operator directing the operator to 
remedy the violation. The letter shall state the facts or conduct alleged to 
warrant the shut in and sealing of the well, and cancellation of the certificate 
of compliance. The letter shall give the operator an opportunity to show 
compliance with state statutes and commission permits, rules, and orders. The 
letter shall be sent by registered or certified mail, and shall indicate the 
time within which compliance must be demonstrated or achieved. The time period 
allowed for the operator to achieve compliance shall not be less than 10 days 
from the date the notice letter or any extension thereto is sent.
<nl>(c) Within the time period set out in the notice letter the operator shall 
either demonstrate compliance or remedy the violation and notify the commission 
of its action.
<nl>(d) If the violation is not remedied within the time period set out in the 
notice letter the commission, or the commissions delegate may direct the 
appropriate commission personnel to shut in and seal the well, and cancel the 
certificate of compliance.
(e) If a certificate of compliance has been cancelled the commission may not 
issue a new certificate of compliance until the owner or operator of the 
property covered by the certificate of compliance submits to the commission a 
reissuance fee as required by sec.3.76 of this title relating to Fees, Bonds, 
and Alternate Forms of Financial Security Required to be Filed) (Statewide Rule 
78); and:
<nl>(1) the property covered by the certificate is brought into compliance with 
all oil, gas, and geothermal resource conservation laws, and the permits, rules, 
and orders of the commission made thereunder; or
<nl>(2)  the commission determines that there are just and equitable grounds for 
reissuing the certificate.
<nl>(f) Upon notice from the commission to any <nl>pipeline<ol> [pipeline] or 
other carrier connected to any [such] oil, gas, or geothermal resource well that 
the certificate of compliance applicable to the well has been cancelled by the 
commission, the pipeline or other carrier shall disconnect from the well, and it 
shall be unlawful for the pipeline or other carrier to transport any oil <nl>or 
gas <ol> produced therefrom until a new certificate of compliance has been 
issued by the commission.
<nl>(g) Upon notice from the commission that a certificate of compliance as to 
any oil, gas, or geothermal resource well has been cancelled by it as provided 
in this section, it shall be unlawful for the operator of such well to produce 
oil, gas, or geothermal resources therefrom until a new certificate of 
compliance with respect to the well has been issued by the commission as 
provided in this section.
<nl>(h) The provisions of this section are cumulative of other commission 
actions and procedures relating to violations of state statutes or commission 
permits, rules, and orders, including the authority of the commission or the 
commissions delegate immediately to shut in a well or lease or to direct the 
operator to shut in a well or lease, when an emergency exists due to pollution 
or an imminent threat of harm to people or property.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113002
Martha V. Swanger
Hearings Examiner, Legal Division-Gas Utilities
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-6864
       
Chapter 5. Transportation Division
The Railroad Commission of Texas proposes amendments to  ssec.5.37, 5.40, 5. 
184, 5.346, 5.386, 5.458, 5.502, 5.503, and 5.507, concerning armored contract 
carriers; intercorporate transportation exemption; insurance carrier; evidence 
of liability security; filing fee accompanying application; applications for 
registration of commercial motor vehicles, liability insurance for commercial 
carriers; and temporary registration for international commercial carriers. The 
proposed amendments are a result of House Bills 1 and 11, adopted by the Second 
Called Session of the 72nd Legislature, which became effective on September 1, 
1991. The amendment to sec.5.37 sets the application fee for armored contract 
carrier permits at $100. The amendments to  ssec.5.40, 5.184, 5.346, 5.386, 
5.502, and 5.503 set the filing fee for proof of insurance at $100. The 
amendment to  s5.502 also sets the commercial motor vehicle registration fee at 
$10 per vehicle per year. The amendment to sec.5.458 sets the application fee 
for common carrier certificates, specialized motor carrier certificates, and 
contract carrier permits at $100. The amendment to sec.5.507 sets the filing 
fees and registration fees for international commercial carriers at $10 each per 
vehicle per trip.
Jackye Greenlee, assistant director-central operations, has determined that for 
the first five-year period the sections are in effect there will be fiscal 
implications for state government as a result of enforcing or administering the 
sections. The effect on state government for the first five years the sections 
are in effect is an increase in revenue of $2,988,752 per year for 1992-1996. 
There are no changes in cost to state government. There are no projected fiscal 
implications for local governments or small businesses as a result of the 
proposed sections.
Ronald D. Stutes, hearings examiner, has determined that for the first three 
years the sections are in effect the public benefit anticipated as a result of 
enforcing the sections is a closer relationship between the cost of providing 
registration and insurance filing services and the fees charged for such 
services. The anticipated increased cost to persons who are required to comply 
with the proposed section is $9.00 per vehicle per year for persons registering 
commercial motor vehicles; $75 per insurance filing for persons filing proof of 
insurance; $18 per vehicle per trip for persons registering international 
vehicles; and $75 per application filed for persons filing applications for 
certificates of public convenience and necessity or contract carrier permits.
Public comment is invited and may be submitted within 30 days to Ronald D. 
Stutes, Hearings Examiner, Railroad Commission of Texas, P.O. Box 12967, Austin, 
Texas 78711.
Subchapter B. Operating Certificates, Permits, and Licenses
16 TAC sec.5.37
The amendment is proposed under the Texas Motor Carrier Act, Texas Civil 
Statutes, Article 911b, sec.6-dd, which subjects armored contract carriers to 
all regulations regarding contract carriers, and sec.7, which as amended sets 
the application fees for permits at $100.
sec.5.37. Armored Contract Carriers.
(a) (No change.)
(b) Applications for armored contract carrier permits.
(1) (No change.)
(2) Contents of the application. The application for an armored contract carrier 
permit shall contain:
(A)-(F) (No change.)
(G) a filing fee of <nl>$100<ol> [$10].
(3)-(5) (No change.)
(c)-(e) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113067
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
16 TAC sec.5.40
The amendment is proposed under Texas Civil Statutes, Article 6701d, sec.139(c), 
which require all commercial motor vehicles to file proof of insurance with the 
commission, and which authorize the commission to charge a fee for those 
filings. The amendment is also proposed under House Bill 1, Second Called 
Session, 72nd Legislature, which directed the commission to raise the filing fee 
to $100.
sec.5.40. Intercorporate Transportation Exemption.
(a)-(b) (No change.)
(c) Application for certificate of notice. Before engaging in the transportation 
defined in subsection (a) of this section, the parent corporation shall file 
with the commission the following:
(1)-(3) (No change.)
(4) a <nl>$100<ol> [$25] filing fee.
(d)-(g) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113068
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
Subchapter L. Insurance Requirements
16 TAC sec.5.184
The amendment is proposed under Texas Civil Statutes, Article 6701d, sec.139(c), 
which require all commercial motor vehicles to file proof of insurance with the 
commission, and which authorize the commission to charge a fee for those 
filings. The amendment is also proposed under House Bill 1, Second Called 
Session, 72nd Legislature, which directed the commission to raise the filing fee 
to $100.
sec.5.184. Insurance Carrier. <ol> No surety bond, insurance policy, or 
certificate of insurance will be accepted by the commission unless issued by an 
insurance company or surety company licensed and authorized to do business in 
the State of Texas in the form prescribed or approved by the State Board of 
Insurance and signed or countersigned by an authorized agent of the insurance or 
surety company. The commission will accept a certificate of insurance issued by 
a surplus lines insurer that meets the requirements of the Insurance Code, 
Article 1.14-2, and rules adopted by the State Board of Insurance under that 
article, if accompanied by proof of inability to obtain insurance from any 
insurance company authorized to do business in the State of Texas in the form of 
the affidavit required under 28 TAC sec.15.13 concerning surplus lines insurance 
affidavit. Each certificate of insurance filed with the commission for the 
coverage required under sec.5.181(a)(1) of this title (concerning Evidence of 
Insurance Required) shall be accompanied by a filing fee of  <nl>$100<ol> [$25].
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113069
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
Subchapter R. Registration of Interstate Operating Authority
16 TAC sec.5.346
The amendment is proposed under Texas Civil Statutes, Article 6701d, sec.139(c), 
which require all commercial motor vehicles to file proof of insurance with the 
commission, and which authorize the commission to charge a fee for those 
filings. The amendment is also proposed under House Bill 1, Second Called 
Session, 72nd Legislature, which directed the commission to raise the filing fee 
to $100.
sec.5.346. Evidence of Liability Security.
(a) (No change.)
(b) Form and execution of liability insurance certificate. The certificate of 
insurance referred to in subsection (a) of this section shall state that the 
insurer has issued to such motor carrier a policy of insurance which by 
endorsement provides automobile bodily injury and property damage liability 
insurance covering the obligations imposed upon such motor carrier by the 
provisions of the laws of this state. The certificate shall be in the form set 
forth in Form E which is made a part hereof. The certificate shall be printed on 
a rectangular card five inches in height and eight inches in width. The 
certificate shall be duly completed and executed by such insurer. Each 
certificate filed with the commission shall be accompanied by a fee of  
<nl>$100<ol> [$25].
(c) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113070
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
Subchapter T. Registration of Operations Exempt from ICC Regulations
16 TAC sec.5.386
The amendment is proposed under Texas Civil Statutes, Article 6701d, sec.139(c), 
which require all commercial motor vehicles to file proof of insurance with the 
commission, and which authorize the commission to charge a fee for those 
filings. The amendment is also proposed under House Bill 1, Second Called 
Session, 72nd Legislature, which directed the commission to raise the filing fee 
to $100.
sec.5.386. Evidence of Liability Security.
(a) (No change.)
(b) Form and execution of liability insurance certificate. The automobile bodily 
injury and property damage liability insurance covering the obligations imposed 
upon such motor carrier by the provisions of the laws of this state and 
regulations of the commission. The certificate shall be in the form set forth in 
Form E which is made a part hereof. The certificate shall be printed on a 
rectangular card five inches in height and eight inches in width. The 
certificate shall be duly completed and executed by such insurer. Each 
certificate filed with the commission shall be accompanied by a fee of 
<nl>$100<ol> [$25].
(c) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113071
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
Subchapter U. General and Special Rules of Practice and Procedure
16 TAC sec.5.458
The amendment is proposed under the Texas Motor Carrier Act, Texas Civil 
Statutes, Article 911b, sec.sec.5a(f), 7, and 17(a), which as amended set the 
application fees for certificates and permits at $100.
sec.5.458. Filing Fee Accompanying Application. Every application [or request] 
seeking a <nl>common carrier certificate, specialized motor carrier<ol> 
[license,] certificate, <nl>contract carrier<ol> permit, <nl>or an<ol> amendment 
to a certificate or permit  <nl>shall be accompanied by a filing fee of $100. 
Every application for a <ol> [,] sale, transfer, division, consolidation, name 
change, reinstatement, suspension, lease (or cancellation of a lease), 
[authority,] change in rates or charges, any application seeking approval of 
action by a railroad, or other application, shall be accompanied seeking [a 
contract carrier permit or] an approval of <nl>a <ol> [an amendment,] sale, 
transfer, or lease of a contract carrier permit shall be accompanied by a filing 
fee in the sum of $10, and that an application for a broker's license shall be 
accompanied by a filing fee in the amount of $5.00. Every complaint shall be 
accompanied by a filing fee in the sum of $25. All filing fees shall be 
nonrefundable.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113072
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
Subchapter W. Registration of Commercial Carriers
16 TAC sec.5.502
The amendment is proposed under Texas Civil Statutes, Article 911b, sec.4(a) 
(13), which require all commercial motor vehicles to be registered with the 
commission and to pay a registration fee of $10 per vehicle, and Article 6701d 
sec.139(c), which requires all commercial motor vehicles to file proof of 
insurance with the commission and to pay a fee for those filings. The amendment 
is also proposed under House Bill 1, Second Called Session, 72nd Legislature, 
which directed the commission to raise the filing fee to $100.
sec.5.502. Applications for Registration of Commercial Motor Vehicles.
(a)-(d) (No change.)
(e) Filing fee. The fees for an application shall be a filing fee of 
<nl>$100<ol> [$25], plus a registration fee of <nl>$10<ol> [$1.00] for each 
vehicle registered. The fee shall be in the form of a check or money order made 
payable to the state treasurer of Texas.
(f)-(i) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113073
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
16 TAC sec.5.503
The amendment is proposed under Texas Civil Statutes, Article 6701d, sec.139(c), 
which require all commercial motor vehicles to file proof of insurance with the 
commission and to pay a fee for those filings. The amendment is also proposed 
under House Bill 1, Second Called Session, 72nd Legislature, which directed the 
commission to raise the filing fee to $100.
sec.5.503. Liability Insurance for Commercial Carriers.
(a)-(f) (No change.)
(g) Additional filing and fee. Any additional proof of insurance file with the 
commission shall require a filing fee of <nl>$100<ol> [$25].
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas on October 21, 1991.
TRD-9113074
Martha V. Swanger
Hearings Examiner
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
16 TAC sec.5.507
The amendment is proposed under Texas Civil Statutes, Article 911b, sec.4(a) 
(13), which require all commercial motor vehicles to be registered with the 
commission and to pay a registration fee of $10 per vehicle, and Article 6701d 
sec.139(c), which requires all commercial motor vehicles to file proof of 
insurance with the commission and to pay a fee for those filings. The amendment 
is also proposed under House Bill 1, Second Called Session, 72nd Legislature, 
which directed the commission to raise the combined fee to $20.
sec.5.507. Temporary Registration of International Commercial Carriers.
(a)-(b) (No change.)
(c) Procedures.
(1) An insurance agent which has filed a master liability policy under which 
temporary insurance policies are issued shall obtain registration stamps from 
the commission. <nl>For each stamp ordered, the <ol> [The] agent shall pay to 
the commission a filing fee of  <nl>$10<ol> [$1.00] and a registration fee of 
<nl>$10<ol> [$1.00] for each stamp ordered].
(2)-(5) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113075
Martha V. Swanger
Hearings Examiner
Railroad Commission of Texas
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-7094
       
TITLE 19. EDUCATION
Part II. Texas Education Agency
Chapter 141. Teacher Certification
Subchapter A. Certification of Teachers in General
19 TAC sec.141.2, sec.141.3
The Texas Education Agency (TEA) proposes amendments to  s141.2 and sec.141. 3, 
concerning certification of teachers in general. The 72nd Legislature, Regular 
Session, repealed the Texas Education Code, sec.13.044, which provided the 
statutory authority for rules requiring United States citizenship for teacher 
certification. The referenced amendments rescind all references to the 
citizenship requirement.
George Dugger, director of programs for the Division of Teacher Records, has 
determined that for the first five-year period the sections are in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the sections.
Mr. Dugger and Criss Cloudt, director for planning coordination also have 
determined that for each year of the first five years the sections are in effect 
the public benefit anticipated as a result of enforcing the sections will be the 
removal of citizenship requirements for non-citizens seeking to become certified 
public school employees and a possible increase in the available pool of 
certified teachers. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
sections as proposed.
Comments on the proposal may be submitted to Criss Cloudt, Planning 
Coordination, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. 
All requests for a public hearing on the proposed sections submitted in 
accordance with the Administrative Procedure and Texas Register Act must be 
received by the commissioner of education not more than 15 calendar days after 
notice of a proposed change in the sections has been published in the  Texas 
Register.
The amendments are proposed under the Texas Education Code, sec.11.26(c)(5), 
which provides the State Board of Education with the authority to adopt rules 
consistent with Chapter 13 of this code for certification of teachers, 
administrators, and other professional personnel customarily employed in public 
schools.
sec.141.2. Classes of Certificates. The following provisions concerning classes 
of certificates shall be in effect.
(1)-(4) (No change.)
(5) Temporary certificates shall be issued to qualified individuals who meet 
requirements identified in Subchapter C of this chapter (relating to <nl>Foreign 
Exchange Teachers<ol> [Texas Certificates for Aliens]), Subchapter J of this 
chapter (relating to Requirements for Issuance of Texas Certificates Based on 
Certificates and College Credentials from Other States), Subchapter L of this 
chapter (relating to Certification of Special Service Positions), Subchapter N 
of this chapter (relating to Emergency Teaching Permits, Special Assignment 
Permits, and Temporary Classroom Assignment Permits), or Subchapter S of this 
chapter (relating to Testing Program) for individuals who have a severe hearing 
impairment. The certificate identifies the level, area, and period of validity.
sec.141.3. General Requirements.
(a) An individual making application for a Texas teacher certificate must:
[(1) be a citizen of the United States or indicate intent to become a 
naturalized citizen as evidenced by filing a statement of intent to become a 
United States citizen with the Division of Teacher Certification;]
<nl>(1)<ol>[(2)] be at least 18 years of age;
<nl>(2)<ol>[(3)] be of good moral character. The commissioner of education may 
refuse to issue a teaching certificate to a person who has been convicted of a 
felony or a misdemeanor for a crime which directly related to the duties and 
responsibilities of the teaching profession. See sec.141.5 of this title 
(relating to Teaching Certificates for Persons with a Criminal Background);
<nl>(3)<ol>[(4)] be willing to support and defend the constitutions of the 
United States and Texas;
<nl>(4)<ol>[(5)] be able to speak and understand the English language 
sufficiently to use it easily and readily in conversation and teaching;
<nl>(5)<ol>[(6)] register for and complete all appropriate examinations as 
prescribed by the State Board of Education in sec.141.441 of this title 
(relating to Initial Certification Examinations) for the teacher preparation 
program completed.
(b)-(j) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on September 19, 1991.
TRD-9113062
Criss Cloudt
Director, Planning Coordination
Texas Education Agency
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-9701
       
Subchapter C. Texas Certificate for Aliens
19 TAC sec.141.41, sec.141.43
The Texas Education Agency (TEA) proposes amendments to  s141.41 and sec.141.43, 
concerning the certification of teachers in general. The 72nd Legislature, 
Regular Session, repealed the Texas Education Code, sec.13.044, which provided 
the statutory authority for rules requiring United States citizenship for 
teacher certification. The referenced amendments rescind all references to the 
citizenship requirement.
George Dugger, director of programs for the Division of Teacher Records, has 
determined that for the first five-year period the sections are in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the sections.
Mr. Dugger and Criss Cloudt, director for planning coordination, also have 
determined that for each year of the first five years the sections are in effect 
the public benefit anticipated as a result of enforcing the sections will be the 
removal of citizenship requirements for non-citizens seeking to become certified 
public school employees and a possible increase in the available pool of 
certified teachers. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
sections as proposed.
Comments on the proposal may be submitted to Criss Cloudt, Planning 
Coordination, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. 
All requests for a public hearing on the proposed sections submitted in 
accordance with the Administrative Procedure and Texas Register Act must be 
received by the commissioner of education not more than 15 calendar days after 
notice of a proposed change in the sections has been published in the  Texas 
Register.
The amendments are proposed under the Texas Education Code, sec.11.26(c)(5), 
which provides the State Board of Education with the authority to adopt rules 
consistent with Chapter 13 of this code for certification of teachers, 
administrators, and other professional personnel customarily employed in public 
schools.
sec.141.41. Policy.  A Texas teacher certificate and/or permit may be granted to 
<nl>a foreign exchange<ol>. [an alien] teacher only under the conditions 
specified in these rules.
sec.141.43. Exchange Teacher.
(a) <nl>A foreign exchange <ol> [An alien] teacher may be granted an emergency 
teaching permit valid for one school year when reciprocity with a Texas teacher 
is officially recognized as a part of a foreign exchange teacher program.
(b) The original permit is activated by submitting to the Division of Teacher 
<nl>Records<ol> [Certification] a completed application form, appropriate fee, 
and appropriate documentation showing earned degrees, and years of experience in 
public schools, institutions of higher learning, or other creditable 
institutions.
(c) If a district wishes to continue the employment of a foreign exchange 
teacher after the initial contract year, the teacher must demonstrate 
satisfactory performance on the appropriate Examination for the Certification of 
Educators in Texas (ExCET).
(1) (No change.)
(2) Record of the individual's continuation in the assignment will appear on the 
teacher service record, and no further contract with the Division of Teacher 
<nl>Records<ol> [Certification] is required.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on September 19, 1991.
TRD-9113063
Criss Cloudt
Director, Planning Coordination
Texas Education Agency
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-9701
       
19 TAC sec.141.42
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Education 
Agency or in the Texas Register office, Room 245, James Earl Rudder Building, 
1019 Brazos Street, Austin.)
The Texas Education Agency (TEA) proposes the repeal of  s141.42, concerning 
certification of teachers in general. The 72nd Legislature, Regular Session, 
repealed the Texas Education Code, sec.13.044, which provided the statutory 
authority for rules requiring United States citizenship for teacher 
certification. The referenced repeal rescinds all references to the citizenship 
requirement.
George Dugger, director of programs for the Division of Teacher Records has 
determined that for the first five-year period the repeal is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the repeal.
Mr. Dugger and Criss Cloudt, director of planning coordination, also have 
determined that for each year of the first five years the repeal is in effect 
the public benefit anticipated as a result of enforcing the repeal will be the 
removal of citizenship requirements for non-citizens seeking to become certified 
public school employees and a possible increase in the available pool of 
certified teachers. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the repeal 
as proposed.
Comments on the proposal may be submitted to Criss Cloudt, Planning 
Coordination, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. 
All requests for a public hearing on the proposed repeal submitted in accordance 
with the Administrative Procedure and Texas Register Act must be received by the 
commissioner of education not more than 15 calendar days after notice of a 
proposed change in the repeal has been published in the  Texas Register.
The repeal is proposed under the Texas Education Code,  s11.26(c)(5), which 
provides the State Board of Education with the authority to adopt rules 
consistent with Chapter 13 of this code for certification of teachers, 
administrators, and other professional personnel customarily employed in public 
schools.
sec.141.42. Person Who Has Filed a Statement of Intention to Become a United 
States Citizen.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 18, 1991.
TRD-9113064
Criss Cloudt
Director, Planning Coordination
Texas Education Agency
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 463-9701
       
TITLE 22. EXAMINING BOARDS
Part XXII. Texas State Board of Public Accountancy
Chapter 521. Fee Schedule
22 TAC sec.521.1
The Texas State Board of Public Accountancy proposes an amendment to sec.521. 1, 
concerning license fee. This rule will increase license fees and will collect 
fees on a biennial basis.
William Treacy, executive director, has determined that for the first five-year 
period the section is in effect there will be fiscal implications for state 
government as a result of enforcing or administering the section. The effect on 
state government for the first five-year period the section is in effect will be 
an estimated additional cost of 70,868 for fiscal year 1992. There will be an 
estimated increase of $2,255,200 for 1992; $1,609,300 for 1993; $1,648,000 for 
1994; $1,687,900 for 1995; and $1,729,000 for 1996. There will be no effect on 
local government. The cost of compliance with the rule for small businesses will 
be $60 every two years for each individual whose license fee is paid by his/her 
employing firm. If a small accounting firm employs five CPAs, the cost would be 
$300 every two years (or an average of $150 per year).
Mr. Treacy, also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be that the persons benefiting from being licensed will bear the 
costs instead of the taxpayers. The possible economic cost to persons who are 
required to comply with the section proposed will be $60 every two years.
Comments on the proposal may be submitted to J. Randel (Jerry) Hill, General 
Counsel, 1033 La Posada, Suite 340, Austin, Texas 78752-3892.
The amendment is proposed under Texas Civil Statutes, Article 41a-1, sec.6(a) 
which provide the Texas State Board of Public Accountancy with the authority to 
promulgate rules relating to fee schedule.
sec.521.1. License Fees.
(a) The <nl>biennial<ol> [annual] fee for a license issued to an individual not 
in retired or disabled status shall be <nl>$120 <ol> [$30]; however, the initial 
license fee shall be prorated <nl>at $5.00 per month for those months during 
which the license is valid<ol> [as shown].
[graphic]
(b) The annual fee for a license issued to a practice unit shall be <nl>$100<ol> 
[$50] and may not be prorated.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 18, 1991.
TRD-9113041
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 450-7066
       
Chapter 523. Continuing Professional Education
Continuing Professional Education Programs
22 TAC sec.523.2
The Texas State Board of Public Accountancy proposes an amendment to sec.523. 2, 
concerning standards for CPE program development. The amendment adds accounting 
courses to the technical area.
William Treacy, executive director, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section.
Mr. Treacy, also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be including accounting courses in the technical area. There will 
be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the section as proposed.
Comments on the proposal may be submitted to J. Randel (Jerry) Hill, General 
Counsel, 1033 La Posada, Suite 340, Austin, Texas 78752-3892.
The amendment is proposed under Texas Civil Statutes, Article 41a-1, sec.6(a), 
which provides the Texas State Board of Public Accountancy with the authority to 
promulgate rules relating to formal continuing professional education standards.
sec.523.2. Standards for CPE Program Development.
(a) (No change.)
(b) Courses which are considered by the board as increasing the licensee's 
professional competence include:
(1) technical courses in areas such as <nl>accounting, <ol> audit, tax, 
management advisory services, and other technical areas of benefit to a licensee 
and a licensee's employer(s);
(2) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 18, 1991.
TRD-9113042
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 450-7066
       
Chapter 527. Quality Review
22 TAC sec.527.7
The Texas State Board of Public Accountancy proposes an amendment to sec.527. 7, 
concerning retention of documents relating to quality reviews. The rule 
establishes guidelines for the retention of records relating to quality reviews.
William Treacy, executive director, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section.
Mr. Treacy also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the ability of the board to review the records to ensure that 
standards for quality reviews are met. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the section as proposed.
Comments on the proposal may be submitted to J. Randel (Jerry) Hill, General 
Counsel, 1033 La Posada, Suite 340, Austin, Texas 78752-3892.
The amendment is proposed under Texas Civil Statutes, Article 41a-1, sec.6(a), 
which provide the Texas State Board of Public Accountancy with the authority to 
promulgate rules relating to quality review.
sec.527.7. Retention of Documents Relating to Quality Reviews.
(a) (No change.)
(b) The documents described in subsection (a) of this section shall be retained 
in the quality reviewer's office for a period of time corresponding to the 
retention period of the relevant sponsoring organization and, upon request of 
the Quality Review Oversight Board, shall be made available to it. In no event 
shall the retention period be less than <nl>90 days for a quality review program 
and 90 days for the Division of Firms program<ol> [six months] from the date of 
acceptance of the review by the sponsoring organization.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 18, 1991.
TRD-9113043
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 450-7066
       
TITLE 40. SOCIAL SERVICES AND ASSISTANCE
Part I. Texas Department of Human Services
Chapter 15. Medicaid Eligibility
Subchapter E. Income
The Texas Department of Human Services proposes the repeal of sec.15.450, an 
amendment to sec.15.460, and new sec. s15.450-15.451, concerning general 
principles of income, in its Medicaid eligibility chapter. The purpose of the 
repeal and new sections is to reestablish the policy that third-party payments 
of medical and social services are not countable income.
Burton F. Raiford, interim commissioner, has determined that for the first five 
year period the proposed sections and repeal will be in effect there will be no 
fiscal implications for state or local governments as a result of enforcing or 
administering the sections and repeal.
Mr. Raiford also has determined that for each year of the first five years the 
sections and repeal are in effect the public benefit anticipated as a result of 
enforcing the section and repeal will be that agency rules are consistent with 
operating policy, and clients are not denied because third-party payments are 
counted as income. There will be no effect on small businesses as a result of 
enforcing or administering the sections and repeal. There is no anticipated 
economic cost to persons who are required to comply with the proposed sections 
and repeal.
Questions about the content of this proposal may be directed to Judy Coker at 
(512) 450-3227 in Long Term Care. Comments on the proposal may be submitted to 
Nancy Murphy, Policy and Document Support-274, Texas Department of Human 
Services E-503, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of 
publication in the Texas Register.
40 TAC sec.15.450
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Department 
of Human Services or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Human Resources Code, Title 2, Chapter 22, 
which authorizes the department to administer public assistance programs, and 
Chapter 32, which authorizes the department to administer medical assistance 
programs.
sec.15.450. Sources of Earned Income.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 22, 1991.
TRD-9113077
Nancy Murphy
Agency Liaison, Policy and Document Support
Texas Department of Human Services
Proposed date of adoption: January 1, 1992
For further information, please call: (512) 450-3227
       
40 TAC sec.sec.15.450-15.451, 15.460
The new sections and the amendment are proposed under the Human Resources Code, 
Title 2, Chapter 22, which authorizes the department to administer public 
assistance programs, and Chapter 32, which authorizes the department to 
administer medical assistance programs.
sec.15.450. General Principles Concerning Income.
(a) Income does not include the value of any third-party payment for medical 
care or medical services furnished to a client. Income does not include the 
value of advice, consultation, training, or other services of strictly social 
nature furnished to a client.
(b) A lump sum payment is countable income in the month of receipt and is a 
resource thereafter.
sec.15.451. Sources of Earned Income. Earned income may be in cash or in-kind. 
Payment of earned income may be:
(1) gross wages for working as someone else's employee;
(2) net earnings from self-employment. If an individual is both employed and 
self-employed, his earned income consists of his wages plus net earnings from 
self-employment;
(3) payment for work or for activities performed as a participant in a program 
conducted by a sheltered workshop or work activities center, even though the 
payment does not meet the definition of wages;
(4) payments or refunds of earned income tax credits, authorized under the 
Internal Revenue Code of 1954, sec.43 and sec.3507 as specified in Public Law 
96-222, sec.101(a)(2)(B);
(5) farm income. Farm income is earned income when either the client or spouse 
is doing the farming or operating the farm as a business.
sec.15.460. Income Exemptions.
(a) (No change.)
(b) The department exempts income that a client receives from any of the 
following sources:
(1)-(5) (No change.)
[(6) the amount of a lump-sum payment in the months following the month of 
receipt. The lump sum is counted as income in the month received and as a 
resource thereafter;]
<nl>(6)<ol>[(7)] the amount of income of a dependent who is receiving SSI or 
AFDC. This income has already been considered in determining the dependent's 
need for SSI or AFDC;
<nl>(7)<ol>[(8)] grant, scholarship, and fellowship funds used to pay tuition 
and fees at an educational institution (including vocational and technical 
schools). Any portion of a grant, scholarship, or fellowship used to pay any 
other expense, such as room, board, or books, cannot be exempt;
<nl>(8)<ol>[(9)] home produce for home consumption;
<nl>(9)<ol>[(10)] infrequent or irregular income. Infrequent or irregular income 
is excluded from the eligibility determination if the total per month is $20 or 
less in unearned income and $10 or less in earned income; and if the income is 
received only once per calendar quarter from a single source or cannot be 
reasonably anticipated. If received in a larger amount or more frequently than 
specified, the entire amount is included in determining eligibility;
(A)-(B) (No change.)
<nl>(10)<ol>[(11)] payments for foster care of a child if the child;
(A)-(B) (No change.)
<nl>(11)<ol>[(12)] one-third of the total amount of child support payments for 
an eligible child;
<nl>(12)<ol>[(13)] first $400 of earnings per month, not to exceed $1, 620 a 
calendar year, of a child who is a student regularly attending school. This 
exemption applies until the child is 22;
<nl>(13)<ol>[(14)] benefits received under Title XII of the Older Americans Act 
(Nutrition Program for the Elderly);
<nl>(14)<ol>[(15)] value of meals and benefits provided under the Child 
Nutrition Act of 1966;
<nl>(15)<ol>[(16)] value of meals provided under the National School Lunch Act 
as amended by Public Law 90-302 of 1968;
<nl>(16)<ol>[(17)] payments made to natives from revenues originating under the 
Alaska Native Claims Settlement Act;
<nl>(17)<ol>[(18)] per capita payments to members of an Indian tribe in 
settlement of claims against the United States under Public Law 93-134;
<nl>(18)<ol>[(19)] per capita judgment payments made to the Blackfeet Tribe of 
Montana and the Gros Ventre Tribe of the Fort Belknap Reservation, Montana under 
Public Law 92-254;
<nl>(19)<ol>[(20)] benefits received from Title II of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970;
<nl>(20)<ol>[(21)] salaries, value of meals, and travel allowances to 
participate in the Retired Senior Volunteer Program and in the Foster 
Grandparent Program of Title II of the Domestic Volunteer Service Act of 1973 
(formerly Title VI of the Older Americans Act). Also included are payments from 
Title III of the same act, which include the Service Corps of Retired Executives 
(SCORE), the Active Corps of Executives (ACE), and the Action Cooperative 
Volunteer Program (ACV);
<nl>(21)<ol>[(22)] payments by the Federal Disaster Assistance Administration 
authorized by the Disaster Relief Act, as amended;
<nl>(22)<ol>[(23)] per capita judgment funds, paid under Public Law 94-540, to 
members of the Grand River Band of Ottawa Indians;
<nl>(23)<ol>[(24)] value of any housing assistance payment paid on a house under 
the United States Housing Act of 1937, the National Housing Act, Section 101 of 
the Housing and Urban Development act of 1965, or Title V of the Housing Act of 
1949, as authorized by Public Law 94-375;
<nl>(24)<ol>[(25)] income received by members of 21 designated Indian tribes 
from lands held in trust by the United States under Public Law 94-114, sec.6. 
Although none of these tribes is located in Texas, tribal members may live in 
the state;
<nl>(25)<ol>[(26)] home energy assistance, except food or clothing under Public 
Law 97-377 and 97-424. Home energy assistance is assistance in cash or in-kind 
that is provided by a private, nonprofit organization or a utility company. Some 
examples of home energy assistance are heating, cooling, weatherization, storm 
windows, and blankets;
<nl>(26)<ol>[(27)] proceeds of either a commercial loan or an informal loan, for 
which repayment is required with or without interest. The proceeds (amount 
borrowed) are not counted as income in the month in which they are received but 
are considered to be a resource in the following month(s). To claim exemption of 
the proceeds of a loan, a client must prove that he acknowledges an obligation 
to repay and that some plan for repayment exists. If these conditions can be 
verified, no written contract is required;
<nl>(27)<ol>[(28)] interest earned on excluded burial funds and any appreciation 
in the value of an excluded burial arrangement that are left to accumulate and 
become a part of separately identifiable burial fund. If the burial funds 
increase by more than $1,500 because of contributions by client actions, the 
amount in excess of $1,500 is a countable resource;
<nl>(28)<ol>[(29)] value of any noncash item (other than food, clothing, or 
shelter) for the month of receipt, if that item would become a partially or 
totally excluded resource were it kept into the month after the month of 
receipt;
<nl>(29)<ol>[(30)] Agent Orange Settlement Fund or any other fund established in 
settlement of the Agent Orange product liability litigation. Public Law 101-239 
excludes the payments from countable income and resources. The law covers both 
disability and death benefits and is retroactive as of January 1, 1989;
<nl>(30)<ol>[(31)] reparation payments received by Holocaust survivors from the 
Federal Republic of Germany. The payments may be made periodically or as a lump 
sum. The department accepts the client's signed statement of amounts involved 
and dates of payment;
<nl>(31)<ol>[(32)] payments from a state-administered fund to aid victims of 
crime;
<nl>(32)<ol>[(33)] payments a state or local government may make as relocation 
assistance.
<nl>(33)<ol>[(34)] compensation received under the Radiation Exposure 
Compensation Act for injuries resulting from exposure to radiation from nuclear 
testing and uranium mining.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 22, 1991.
TRD-9113078
Nancy Murphy
Agency Liaison, Policy and Document Support
Texas Department of Human Services
Proposed date of adoption: January 1, 1992
For further information, please call: (512) 450-3227
       
Chapter 29. Purchased Health Services
Subchapter G. Hospital Services
40 TAC sec.29.609
The Texas Department of Human Services (DHS) proposes to amend sec.29.609, 
concerning additional reimbursement to disproportionate share hospitals, in its 
Purchased Health Services rules. Section 29.609 is being amended to establish a 
fourth disproportionate share program, which will provide additional 
reimbursement to significant rural disproportionate share providers. This 
program is being established to comply with Senate Bill 82 which was passed 
during the special legislative session.
Burton F. Raiford, interim commissioner, has determined that for the first five-
year period the proposed amendment will be in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the amendment.
Mr. Raiford also has determined that for each year of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the amendment will be that significant rural disproportionate share providers 
will receive additional reimbursement. There will be no fiscal implications for 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the proposed amendment.
Questions about the content of the proposal may be directed to Joseph B. 
Branton, Jr., at (512) 338-6505 in DHS's Purchased Health Services. Comments on 
the proposal may be submitted to Nancy Murphy, Agency Liaison, Policy and 
Document Support-263, Texas Department of Human Services E-503, P.O. Box 149030, 
Austin, Texas 78714-9030, within 30 days of publication in the Texas Register.
The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 
and 32, which provides the department with the authority to administer public 
and medical assistance programs.
sec.29.609. Additional Reimbursement to Disproportionate Share Hospitals.
(a)-(g) (No change.)
(h) Significant rural disproportionate share providers. In addition to the 
reimbursement described in subsection (e) of this section and effective 
September 11, 1991, the department establishes a fourth disproportionate share 
program. This program provides reimbursement to certain hospitals located in 
rural areas. A rural area is defined as an area outside of a Metropolitan 
Statistical Area (as defined by the federal Office of Management and Budget). 
Rural hospitals are not required to first qualify under the formula described in 
subsection (d) of this section to qualify for reimbursement under this 
subsection. However, qualifying rural hospitals must meet the requirements 
described in subsection (d)(2) of this section. Qualification and reimbursement 
are determined as follows:
(1) The department first determines each rural hospital's disproportionate 
patient percentage using the following formulas:
[graphic]
(2) The department then arrays each rural hospital's disproportionate patient 
percentage in descending order. The department selects hospitals that meet the 
requirements in subsection (d)(2) of this section beginning with the hospital 
with the highest disproportionate patient percentage and continuing until at 
least 50% of the rural hospitals have been selected. Those hospitals selected 
qualify for disproportionate share payments.
(3) Using data from the formulas described in paragraph (1) of this subsection, 
the department determines the average monthly number of Title XVIII days, Title 
XIX days, and Additional Indigent Days of each qualifying rural hospital. A 
qualifying rural hospital will receive a monthly disproportionate share payment 
based upon the following formula:
[graphic]
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 21, 1991.
TRD-9113080
Nancy Murphy
Agency liaison, Policy and Document Support
Texas Department of Human Services
Proposed possible date of adoption: January 1, 1992
For further information, please call: (512) 450-3227
       
Chapter 72. Memoranda of Understanding with Other State Agencies
Memoranda of Understanding for Child Protective Services
40 TAC sec.72.901
The Texas Department of Human Services (DHS) proposes an amendment to sec.72. 
901, concerning delivery to dysfunctional families, in its Memoranda of 
Understanding with Other State Agencies chapter. The purpose of the amendment is 
to require DHS, the Texas Youth Commission (TYC), and the Texas Juvenile 
Probation Commission (TJPC) to continue complying with the Human Resources Code 
(HRC), sec.71.011(A), as passed by the 71st Texas Legislature. The agencies 
initially complied with the law by adopting sec.72.901 in 1990. The amendment 
also allows the agencies to continue applying the section without having to 
amend it every year. Finally, the amendment clarifies that the MOU is operative 
only in those years when state appropriations are sufficient for the agencies to 
allocate funds for joint contracts for services to dysfunctional families.
Burton F. Raiford, interim commissioner, has determined that for the first five-
year period the proposed section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section.
Mr. Raiford also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be that dysfunctional families are ensured that they will continue 
receiving coordinated services when the agencies have sufficient funding to 
enter into joint contracts. There will be no effect on small businesses as a 
result of enforcing or administering the section. There is no anticipated 
economic cost to persons who are required to comply with the section.
Questions about the content of this proposal may be directed to Carol Martin at 
(512) 450-3134 in the Protective Services for Families and Children Department. 
Comments on the proposal may be submitted to Nancy Murphy, Policy and Document 
Support-247, Texas Department of Human Services E-503, P.O. Box 149030, Austin, 
Texas 78714-9030, within 30 days of publication in the Texas Register.
The amendment is proposed under the Human Resources Code, Title 2, Chapter 22, 
which authorizes the department to administer public assistance programs, and 
Chapter 71, which authorizes the department to enter into a memorandum of 
understanding with the TYC and the TJPC, regarding service delivery to 
dysfunctional families.
sec.72.901. Memorandum of Understanding Regarding Service Delivery to 
Dysfunctional Families.
(a) [In compliance with the Texas Human Resources Code, sec.71.011 (Vernon 
1990), the] <nl>The<ol> Texas Department of Human Services, the Texas Youth 
Commission, and the Texas Juvenile Probation Commission, hereinafter referred to 
as "the agencies," agree to this memorandum of understanding (MOU) <nl>in 
compliance with the Texas Human Resources Code, sec.71.011.
<nl>(b) By July 15 of every odd-numbered year, or within 30 days after the 
Governor of Texas signs a general appropriations act, whichever is later, each 
of the agencies will determine which portion, if any, of its funding to 
designate for servicing its clients through the joint contract(s) specified in 
subsection (c) of this section. None of the agencies is obligated to enter into 
the joint contracts specified in subsection (c) of this section unless all of 
the agencies elect to do so.
<nl>(c) Beginning on  <ol>[(b) By] September 1, 1990, <nl>and by September 1 
every year thereafter in which the agencies decide to enter into the joint 
contracts specified in this subsection,<ol> the agencies will award one or more 
joint contracts for nonresidential community services to help dysfunctional 
families in each agency's client population. At a minimum, each contract must 
include the following services:
(1)-(3) (No change.)
(4) individual counseling for a limited number of clients referred [on a crisis 
basis] from the support groups specified in paragraph (3) of this subsection 
<nl>during family crises.
<nl>(d) All joint contracts awarded under the provisions of this section must be 
publicized and awarded in conformity with all applicable requirements of Chapter 
69 of this title (relating to Contracted Services)<ol>.
[(c) [By May 1, 1990, each agency will determine what portion of its funding to 
designate for serving its own clients through the joint contract(s) specified in 
subsection (b) of this section.
[(d) [By May 1, 1990, each agency will determine the pilot county or counties in 
which to issue a joint request for contract proposals.]
<ol>(e)<nl> The agencies will ensure that contracted services are available to 
clients by September 1 of every fiscal year in which the agencies enter into the 
joint contracts specified in subsection (c) of this section.<ol> [By June 1, 
1990, the agencies will issue a joint request for proposals.]
<ol>(f)<nl> The agencies initially adopted<ol> [Subject to the approval of each 
agency's board, the agencies will adopt] this section <nl>on<ol> [by] September 
<nl>11,<ol> [1,] 1990. The agencies will [also] amend <nl>it<ol> [this section] 
whenever they agree to revisions.
(g) The agencies will meet <nl>at least once each year<ol> [in August 1991] to 
review and <nl>consider revising <ol> [update] this section <nl>before the 
beginning of the next fiscal year.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 22, 1991.
TRD-9113079
Nancy Murphy
Agency liaison, Policy and Document Support
Texas Department of Human Services
Proposed date of adoption: December 1, 1991
For further information, please call: (512) 450-3765