Adopted Sections
An agency may take final action on a section 30 days after a proposal has been 
published in the Texas Register. The section becomes effective 20 days after the 
agency files the correct document with the Texas Register, unless a later date 
is specified or unless a federal statute or regulation requires implementation 
of the action on shorter notice.
If an agency adopts the section without any changes to the proposed text, only 
the preamble of the notice and statement of legal authority will be published. 
If an agency adopts the section with changes to the proposed text, the proposal 
will be republished with the changes.
TITLE 1. ADMINISTRATION
Part XII. Advisory Commission on State Emergency Communications
Chapter 251. Regional Plans
1 TAC sec.251.1
The Advisory Commission on State Emergency Communications adopts an amendment to 
sec.251.1, without changes to the proposed text as published in the October 1, 
1991, issue of the Texas Register (16 TexReg 5375).
In compliance with the Health and Safety Code, Chapter 771, the Advisory 
Commission on State Emergency Communications adopts sec.251.1 in order to 
establish minimum performance standards for equipment and operations on 9-1-1 
service.
Health and Safety Code, Chapter 771 requires the commission to develop minimum 
performance standards for equipment and operations of 9-1-1 service which are to 
be followed in establishing a 9-1-1 regional plan as outlined in 771.055 of the 
statute. This rule defines the minimum standards for the Regional Councils of 
Government to use in the development of the 9-1-1 regional plans.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Health and Safety Code, Chapter 771, which 
provides the Advisory Commission on State Emergency Communications with the 
authority to administer the implementation of statewide 9-1-1 emergency 
telephone service.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 3, 1991.
TRD-9115295
Mary A. Boyd
Executive Director
Advisory Commission on State Emergency Communications
Effective date: December 27, 1991
Proposal publication date: October 1, 1991
For further information, please call: (512) 327-1911
       
Chapter 255. Finance
1 TAC sec.255.1
The Advisory Commission on State Emergency Communications adopts an amendment to 
sec.255.1 without changes to the proposed text as published in the October 1, 
1991, issue of the Texas Register (16 TexReg 5375).
The Advisory Commission on State Emergency Communications amends sec.255.1 (to 
establish the funding mechanism which allows for the planning and implementation 
of 9-1-1 emergency telephone systems) to properly cite legislative reference.
The section defines intrastate long-distance service, establishes the 9-1-1 
surcharge rate, and the effective date of implementation and applicability. The 
section will assist with the implementation of the 9-1-1 emergency telephone 
number throughout the state and allow for faster access to police, fire and 
emergency medical services.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Health and Safety Code, Chapter 771, which 
provides the Advisory Commission on State Emergency Communications with the 
authority to administer the implementation of statewide 9-1-1 emergency 
telephone service.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 3, 1991.
TRD-9115296
Mary A. Boyd
Executive Director
Advisory Commission on State Emergency Communications
Effective date: December 27, 1991
Proposal publication date: October 1, 1991
For further information, please call: (512) 327-1911
       
Part XIII. Texas Incentive and Productivity Commission
Chapter 273. State Employee Incentive Program
1 TAC sec.sec.273.1, 273.7, 273.9
The Texas Incentive and Productivity Commission (TIPC), adopts amendments to 
sec.sec.273.1. 273.7. and 273.9, concerning the State Employee Incentive 
Program. Sections 273.1, and 273.7 are adopted with changes to the proposed text 
as published in the September 13, 1991, issue of the Texas Register (16 TexReg 
5023). Section 273.9 is adopted without changes and will not be republished.
The definition of "Act" was amended, and a definition of "Savings measurement 
account" was added in sec.273.1. Section 273.7 was amended to give agencies 
directions on the transfers involved in making awards. New language was added to 
sec.273.9(d) to provide an award eligibility period.
Changes not previously published are to sec.273.1 and  sec.273.7(e). The 
definition of "Savings measurement account" was reworded in sec.273.1. 
Instructions on establishing a Savings Measurement Account were also reworded in 
sec.273.7(e). The changes were made to address concerns and comments submitted 
by the Texas Department of Transportation.
The Texas Department of Transportation submitted comments regarding the 
proposal. TIPC addressed the valid concerns and reworded language to clarify the 
definition of a savings measurement account from an accounting perspective and 
to allow agencies to choose whether to use one or multiple savings measurement 
accounts.
The amendments are adopted under Texas Civil Statutes, Article 6252-29a, sec.1, 
which authorize the Texas Incentive and Productivity Commission to promulgate 
rules for the State Employee Incentive Program.
sec.273.1. Definitions for the State Employee Incentive Program.  The following 
words and terms, when used in this chapter, shall pertain only to the State 
Employee Incentive Program and shall have the following meanings, unless the 
context clearly indicates otherwise.
   Act-Texas Civil Statutes, Article 6252-29a, Incentive and Productivity Act 
and the General Appropriations Act.
   Savings measurement account-A cost center into which cash, in an amount equal 
to the projected savings/revenue resulting from approved employee suggestions, 
is transferred from the agency's other cost centers.
sec.273.7. Agency's Role.
(a)-(d) (No change.)
(e) Establishment of savings measurement account. Upon implementation of an 
approved employee suggestion, an agency shall establish a savings measurement 
account and transfer into this account the share of the projected net first-year 
savings/revenue attributable to the suggestion during that fiscal year. 
Savings/revenue attributable to implementation of subsequent approved employee 
suggestions may be transferred into the agency's initials savings measurement 
account or may be transferred into a newly established savings measurement 
account. If a new fiscal year begins prior to the agency's certification of 
savings, at the beginning of the fiscal year, the agency shall transfer into the 
savings measurement account(s) the share of the projected net savings/revenue 
attributable to the suggestions(s) during the new fiscal year. In the event that 
the certified savings/revenue amount differs from the balance in a 
savings/measurement account, the agency shall use the procedures outlined in the 
General Appropriations Act.
(f) Calculation and certification of net savings. Upon implementation of an 
approved suggestion, an agency shall track savings for one year in preparation 
for making the certification and funds transfers described in the Act, 
sec.2.002(f). The commission may certify a savings amount prior to the 
completion of a full implementation year if the suggestion involves a one-time 
savings or if the commission finds the agency's projected savings to be based on 
a reasonable and reliable method.
(g)  Allocation of net annual savings. Net annual savings realized from employee 
suggestions adopted by a state agency must be allocated by the state agency as 
provided in the Act, sec.2.002(f), the General Appropriation Act, and 
Comptroller's Accounting Policy Statement Number 34.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 5, 1991.
TRD-9115211
M. Elaine Powell
Executive Director
Texas Incentive and Productivity Commission
Effective date: December 26, 1991
Proposal publication date: September 13, 1991
For further information, please call: (512) 475-2393
       
Chapter 275. Productivity Bonus Program
1 TAC sec.sec.275.1, 275.6, 275.13, 275.17
The Texas Incentive and Productivity Commission (TIPC), adopts new sec.275.6 and 
the amendments to sec.sec.275.1, 275.13, and 275.17, concerning the Productivity 
Bonus Program. Section 275.1 and new sec.275.6 are adopted with changes to the 
proposed text as published in the September 13, 1991, issue of the  Texas 
Register (16 TexReg 5024). Amendments to sec.275.13 and sec.275.17 are adopted 
without changes and will not be republished.
The definition of "Act" was amended, and a definition of "Savings measurement 
account" was added to sec.275.1. Section 275.6 was added to describe transfers 
to the savings measurement account. Section 275.13 was amended to include a 
reference to the savings measurement account. The bonus limit in sec.275.17 was 
lowered to $1,000 to reflect statutory changes.
Changes not previously published are to sec.275.1 and  sec.275.6. The definition 
"Savings measurement account" was reworded in sec.275.1. Instructions on 
establishing a savings measurement account were also reworded in sec.275.6. The 
changes were made to address concerns and comments submitted by the Texas 
Department of Transportation.
The Texas Department of Transportation submitted comments regarding the 
proposal. TIPC addressed the valid concerns and reworded language to clarify the 
definition of a savings measurement account from an accounting perspective and 
to allow agencies to choose whether to use one or multiple savings measurement 
accounts.
The new section and amendments are adopted under Texas Civil Statutes, Article 
6252-29a, sec.1, which authorize the Texas Incentive and Productivity Commission 
to promulgate rules for its programs.
sec.275.1. Definitions for the Productivity Bonus Program.  The following words 
and terms, when used in this chapter shall pertain only to the Productivity 
Bonus Program and shall have the following meanings, unless the context clearly 
indicates otherwise.
   Act-Texas Civil Statutes, Article 6252-29a, Incentive and Productivity Act 
and the General Appropriations Act.
   Savings measurement account-A cost center into which cash, in an amount equal 
to the projected savings resulting from approved productivity plans, is 
transferred from the agency's other cost centers.
sec.275.6. Establishment of a Ravings Measurement Account.  Upon implementation 
of an approved productivity plan, an agency shall establish a savings 
measurement account for that plan and transfer into this account the share of 
the projected net savings attributable to the plan during that fiscal year. 
Savings attributable to implementation of subsequent approved productivity plans 
may be transferred into the agency's initial savings measurement account, or may 
be transferred into a newly established savings measurement account.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 5, 1991.
TRD-9115212
M. Elaine Powell
Executive Director
Texas Incentive and Productivity Commission
Effective date: December 26, 1991
Proposal publication date: September 13, 1991
For further information, please call: (512) 475-2393
       
TITLE 16. ECONOMIC REGULATION
Part II. Public Utility Commission of Texas
Chapter 21. Practice and Procedure
Docketing and Notice
16 TAC sec.21.28
The Public Utility Commission of Texas adopts new sec.21.28, concerning notice 
of unclaimed funds, without changes to the proposed text as published in the 
June 28, 1991, issue of the Texas Register (16 TexReg 3572).
This section provides that the State Treasurer will be notified of proceedings, 
other than fuel refund proceedings, in which there may be a specific amount of 
money to be refunded to ratepayers who may need to be located.
The following submitted comments in response to the June 28, 1991, Texas 
Register publication: Houston Lighting & Power (HL&P) and Southwestern Public 
Service Company (SPS).
HL&P had no objection to the rule, but did suggest that the language be modified 
by deleting the words "who may need to be located".
HL&P believed that the language should be deleted because a determination would 
need to be made of whether refunds should be distributed to past or current 
customers before evidence was taken in order to provide notice to the State 
Treasurer. HL&P state that this threshold determination may be perceived as an 
ultimate finds of the commission that a refund must be made to past customers. 
HL&P argues that the initial determination for notice purposes may be confused 
by parties with ultimate commission finding on substantive issue of how refunds 
should be distributed.
The commission is satisfied that the rule is clear on its face and will not 
result in confusion by the parties. The rule clearly states that in situations 
in where there may be refunds to customers who may need to be located, that the 
Treasurer will be given notice. By the use of the word "may", the rule clearly 
contemplates that merely an initial determination will be made for notice 
purposes only. Furthermore, the Treasurer would have the greatest interest in 
proceedings where there exists the possibility of unclaimed funds. Circumstances 
in which the issue of unclaimed funds may arise would be in those proceedings in 
which there may be customers who may need to be located.
HL&P also expressed concern that the language should be deleted because an 
initial determination concerning whether customers may need to be located may 
unfairly limit the Treasurer's ability to participate in the proceedings. HL&P 
argues that the Treasurer's right participate in the proceedings would be 
eliminated if a determination was made that no customers needed to be located.
The commission believes that the rule in no way limits the Treasurer's ability 
to intervene in any proceeding in which the Treasurer has a justiciable 
interest. Like any other potential intervenor, the Treasurer may challenge and 
appeal any determination made concerning its right participate. Additionally, 
although the Treasurer may not receive direct notice, of all proceedings is 
published in the Texas Register .
Although Southwestern Public Service Company (SPS) shares the commission's 
concern to return funds to all eligible customers, SPS believes that the rule 
duplicates Texas escheat statutes and permits too easily the intervention of the 
Treasurer. SPS also requests that the rule allow exemption of not only fuel 
refund cases but also base revenue refund cases from the notification 
requirement.
The commission is unpersuaded by SPS's arguments. First, the commission believes 
that the rule provides yet another source form which customers who can not be 
located may be able to collect their money. The direct participation of the 
Treasurer guarantees that the customer's name is promptly added to the list of 
those citizens who have money collected in the Unclaimed Money Fund. there fore, 
the State Treasurer's participation will make it more likely that the customer 
can be located.
Second, the rule does not allow for the automatic intervention of the State 
Treasurer. No new standard for intervention is contemplated by the rule. The 
rule merely states that in the proper situations, the Treasurer will be given 
notice and the opportunity to intervene. The Treasurer must meet the same 
requirements of intervention as any other party.
Finally, the commission does not believe exclusion of base revenue refunds from 
the notice requirements would be in the public interest. Although the 
commission's substantive rules have a special mechanism for returning fuel over 
collections, no such provision exists for base revenue funds. Furthermore, in 
electric proceedings, base revenue refunds encompass all refunds situations 
other than fuel refund cases. If the commission were to exempt base revenue 
refunds from the notice requirements, then all electric proceedings would be 
effectively exempted from the rule. The commission perceives a need to give the 
State Treasurer an opportunity to intervene in order to grant extra protection 
to those rate payers that cannot be identified. To exclude all electric 
proceedings from the notice rule would run contrary to the commission's intent.
The new section adopted under Texas Civil Statute, Article 1446c, sec.16(a), 
which provide the Public Utility Commission of Texas with the authority to make 
and enforce the rules reasonably required in the exercise of its powers and 
jurisdiction.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 5, 1991.
TRD-9115358
Mary Ross McDonald
Secretary
Public Utility Commission
Effective date: December 27, 1991
Proposal publication date: June 28, 1991
For further information, please call: (512) 458-0100
       
TITLE 19. EDUCATION
Part II. Texas Education Agency
Chapter 75. Curriculum
Subchapter D. Essential Elements-Grade Nine-12
19 TAC sec.sec.75.61-75.65, 75.67-75.70, 75.85
The Texas Education Agency adopts amendments sec.sec.75.61-75.65, 75.67-75.70, 
and 75.85. The amendments to sec.sec.75.61, 75.63, 75.65, and 75.85 are adopted 
with changes to the proposed text as published in the October 11, 1991, issue of 
the  Texas Register (16 TexReg 5645). The amendments to sec.sec.75.62, 75.64, 
and 75.67-75.70 are adopted without changes and will not be republished. The 
sections are being amended as a result of the five-year curriculum review 
process, preliminary discussions with the State Board of Education, and changes 
in content that were included in Proclamations 68, 1991, and 1992.
Justification for the amendment will be the revision of curriculum essential 
elements to reflect content changes made in Textbook Proclamations 68, 1991, and 
1992.
The amendment will function by allowing school districts sufficient time to 
update curriculum guides and materials and to plan staff development programs 
for implementing new textbooks based on the reviewed essential elements, assist 
publishers in developing teacher editions with references to the revised 
essential elements, and assist textbooks reviewers in reviewing coverage of the 
revised essential elements in the textbooks.
Comments were received regarding adoption of the amendments from the State Board 
of Education. The board directed the agency to implement the following changes 
as a result of these comments. Section 75.61(ss)(5)(C) has been changed for 
editorial clarification. Section 75.63(cc)(4)(F) has been changed to eliminate 
functions defined by integrals. Section 75.63(p) has been changed to correct the 
incorrect cross-reference to subsection (ee). Section 75.65(c)(1)(B) has been 
changed to add additional emphasis on discussing the relevance of the grief 
process in health education. Section 75.65(c)(D)(i) and (iv) have been changed 
editorially and to add the concept of prevention to the study of diseases. 
Section 75.65(c)(1)(F)(iv) has been changed to emphasize the evaluation of both 
positive and negative methods of weight control. Section 75. 65(c)(2)(B)(i) and 
(ii) were changed to eliminate the specificity on the study of the adolescent 
and geriatric populations and editorially to specify the Human Immunodeficiency 
Virus (HIV) as a disease. Section 75.65(c)(2)(F) has been changed editorially. 
Section 75.65(c)(3)(C) has been changed to add "schools" to the entities whose 
roles are examined in health education. Section 75.65(c)(3)(D) has been changed 
to correct a typographical error in the word "medial." Section 75.85(a)(1)(A) 
has been changed to return to the previous term of "demonstrate" skills, 
characteristics, and responsibilities of leaders and effective group members. 
Section 75.85(f)(8) was changed editorially for clarification.
The amendments are adopted under sec.21.101, which provides the State Board of 
Education with the authority to adopt rules designating the essential elements 
for a well-balanced curriculum for state school districts.
sec.75.61. English Language Arts.
(a) English I (one unit). Essential elements described in this subsection for 
English I shall be superseded by the essential elements described in subsection 
(gg) of this section effective September 1992. English I shall include the 
following essential elements.
(1)-(4) (No change.)
(b) English II (one unit). Essential elements described in this subsection for 
English II shall be superseded by the essential elements described in subsection 
(hh) of this section effective September 1992. English II shall include the 
following essential elements.
(1)-(4) (No change.)
(c) English III (one unit). Essential elements described in this subsection for 
English III shall be superseded by the essential elements described in 
subsection (ii) of this section effective September 1992. English III shall 
include the following essential elements.
(1)-(4) (No change.)
(d) English IV (one unit). Essential elements described in this subsection for 
English IV shall be superseded by the essential elements described in subsection 
(jj) of this section effective September 1992. English IV shall include the 
following essential elements.
(1)-(4) (No change.)
(e) (No change.)
(f) Correlated Language Arts I (one unit). Essential elements described in this 
subsection for Correlated Language Arts I shall be superseded by the essential 
elements described in subsection (kk) of this section effective September 1992. 
Correlated Language Arts I shall include the following essential elements.
(1)-(4) (No change.)
(g) Correlated Language Arts II (one unit). Essential elements described in this 
subsection for Correlated Language Arts II shall be superseded by the essential 
elements described in subsection (ll) of this section effective September 1992. 
Correlated Language Arts II shall include the following essential elements.
(1)-(4) (No change.)
(h) Correlated Language Arts III (one unit). Essential elements described in 
this subsection for Correlated Language Arts III shall be superseded by the 
essential elements described in subsection (mm) of this section effective 
September 1992. Correlated Language Arts III shall include the following 
essential elements.
(1)-(4) (No change.)
(i)  Correlated Language Arts IV (one unit). Essential elements described in 
this subsection for Correlated Language Arts IV shall be superseded by the 
essential elements described in subsection (nn) of this section effective 
September 1992. Correlated Language Arts IV shall include the following 
essential elements.
(1)-(4) (No change.)
(j) English for Speakers of Other Languages I, II, III (1/2-one unit). The 
essential elements and the course title described in this subsection for English 
for Speakers of Other Languages I, II, III shall be superseded by the essential 
elements and the course title described in subsection (tt) of this section 
effective September 1992. English for Speakers of Other Languages I, II, III 
shall include the following essential elements.
(1)-(4) (No change.)
(k) Reading Improvement I, II, III (1/2-one unit). Reading Improvement I, II, 
III shall include the following essential elements.
(1) Determine the meaning of words in oral and written communication. The 
student shall be provided opportunities to:
(A)  develop strategies to decode written language in connected text including 
structural analysis and contextual clues;
(B) develop strategies to use dictionaries and thesauruses to analyze and 
produce meaningful communication; and
(C) develop strategies to expand vocabulary, including the use of content area 
vocabulary and multimeaning words.
(2) Construct implicit and explicit meaning from oral and written communication, 
including student writing. The student shall be provided opportunities to:
(A) develop and expand language through wide reading;
(B) develop and expand language by listening to text read aloud;
(C) develop and activate background knowledge central to the text;
(D) integrate new information with background knowledge to increase reading and 
listening comprehension; and
(E) use oral and written composing processes.
(3) Apply listening, speaking, reading, and writing strategies to a variety of 
purposeful language situations. The student shall be provided opportunities to:
(A)  develop fluency through wide reading at an independent level on a daily 
basis;
(B) develop fluency in writing by writing for a variety of purposes including 
journal entries, writing in response to written text, writing to summarize, 
etc., on a daily basis;
(C) experience success in reading, writing, listening, and speaking in order to 
develop positive attitudes about the language arts;
(D) set an appropriate purpose for reading and/or listening prior to engaging in 
reading and/or listening activities;
(E)  predict, confirm predictions about text, and/or reread to modify 
predictions;
(F) understand events in sequential order, determine the main ideas and 
supporting details, predict probable future outcomes or actions, distinguish 
between fact and nonfact, recognize points of view, recognize forms of 
propaganda, make inferences and draw conclusions, perceive cause and effect 
relationships, summarize written text, and evaluate and make judgments and 
generalizations based on an analysis of information provided in the text by 
producing oral and written texts;
(G) respond to text or to a speaker by writing to extend ideas;
(H) read flexibly by adjusting reading rate according to purpose including 
reading for pleasure, reading for information, and reading to monitor 
understanding of text; and
(I) read text presented or formatted in a variety of ways including interpreting 
graphic sources and life skills materials, following complex written directions, 
and using reader aids such as bold faced headings and italics.
(4) Apply a variety of study strategies to practical situations including 
materials and assignments from other classes in which students are enrolled. The 
student shall be provided opportunities to:
(A) use library resources;
(B)  develop strategies for note taking in a variety of contexts;
(C)  use a variety of study techniques including skimming, scanning, surveying, 
and reviewing;
(D) use a variety of strategies for time management and organization of 
materials; and
(E) develop strategies for test taking in a variety of contexts.
(l)-(t) (No change.)
(u)  Introduction to speech communication (1/2-one unit). Essential elements 
described in this subsection for introduction to speech communication shall be 
superseded by the essential elements described in subsection (qq) of this 
section effective September 1994. Introduction to speech communication shall 
include the following essential elements.
(1)-(7) (No change.)
(v) -(w) (No change.)
(x) Debate I, II, III (1/2-one unit). Essential elements described in this 
subsection for Debate I, II, III shall be superseded by the essential elements 
described in subsection (rr) of this section effective September 1995. Debate I, 
II, III shall provide a program that includes the following essential elements.
(1)-(10) (No change.)
(y) Public Speaking I, II, III (1/2-one unit). Essential elements described in 
this subsection for Public Speaking I, II, III shall be superseded by the 
essential elements described in subsection (ss) of this section effective 
September 1995. Public Speaking I, II, III shall provide a program that includes 
the following essential elements.
(1)-(10) (No change.)
(z) (No change.)
(aa) Journalism (1/2-one unit). Essential elements described in this subsection 
for journalism shall be superseded by the essential elements described in 
subsection (oo) of this section effective September 1993. Journalism shall 
include the following essential elements.
(1)-(9) (No change.)
(bb)-(cc) (No change.)
(dd) Photojournalism (1/2-one unit). Essential elements described in this 
subsection for photojournalism shall be superseded by the essential elements 
described in subsection (pp) of this section effective September 1993. 
Photojournalism shall include the following essential elements.
(1)-(4)  (No change.)
(ee)-(nn) (No change.)
(oo) Journalism (1/2-one unit). Essential elements for journalism as described 
in this subsection shall be effective September 1993. Journalism shall include 
the following essential elements.
(1) Basic features of journalism. The student shall be provided opportunities 
to:
(A)  identify significant persons and events in the history of journalism of the 
United States;
(B) define the responsibility of the media to the audience; and
(C) distinguish fact from opinion.
(2)  Journalistic writing. The student shall be provided opportunities to:
(A) differentiate among and write straight, interpretive, and feature news 
stories, including effective leads;
(B) understand the elements of news;
(C) use inverted pyramid form;
(D) use journalistic style;
(E) gather information through interviews and incorporate direct and indirect 
quotes; and
(F) write captions.
(3) Editing. The student shall be provided opportunities to:
(A) recall and employ the rules of writing headlines;
(B) recall and employ the rules of style;
(C) edit copy using appropriate copyreading and proofreading symbols;
(D) demonstrate the ability to apply the rules of standard usage; and
(E) rewrite copy.
(4) Specialized writing. The student shall be provided opportunities to:
(A) analyze policies;
(B) write an editorial;
(C) write a column;
(D) write a review; and
(E) write a feature.
(5) Layout. The student shall be provided opportunities to:
(A) describe the characteristics of front, news, editorial, feature, and sports 
pages and distinguish among them;
(B)  describe the characteristics of yearbook layouts by section and distinguish 
among them;
(C) explain the significance of placement;
(D)  demonstrate the relationship among the elements of design;
(E)  identify size, contrast, and variety of type;
(F) select, crop, and scale photographs;
(G) paste up a layout;
(H) proofread a layout; and
(I) recognize good, usable photos and demonstrate proficiency in cropping the 
photos to fit the overall page plan.
(6)  Advertising. The student shall be provided opportunities to:
(A)  study trends in advertising;
(B) design an advertisement;
(C)  explain the purpose of advertisements;
(D) analyze economic costs of a publication; and
(E) differentiate between advertising appeals and propaganda.
(pp) Photojournalism (1/2-one unit). Essential elements for photojournalism as 
described in this subsection shall be effective September 1993. Photojournalism 
shall include the following essential elements.
(1)  Photography for journalistic purposes. The student shall be provided 
opportunities to:
(A) plan photographs in relation to assignments from an editor;
(B) illustrate news events with appropriate photos and captions; and
(C) plan photo layout.
(2) Camera. The student shall be provided opportunities to:
(A) operate a 35mm single-lens reflex camera with a variety of lenses;
(B) operate a flash;
(C)  read a light meter;
(D) illustrate news events with appropriate photos;
(E) demonstrate knowledge of ASA, aperture, and shutter; and
(F) understand available light, depth of field, and the rule of thirds.
(3) Film processing. The student shall be provided opportunities to:
(A) process film;
(B) print photos;
(C) understand developing chemistry;
(D) understand printing chemistry; and
(E)  understand darkroom equipment.
(4) Composition. The student shall be provided opportunities to:
(A) apply principles of balance and contrast;
(B) crop and scale photos;
(C) lay out articles with photos; and
(D) write captions.
(5) Photo editing. The student shall be provided opportunities to:
(A) set up an assignment system;
(B) meet deadlines;
(C) set up a system of keeping track of negatives and contact sheets; and
(D) evaluate photographs for technical quality and composition.
(qq) Speech communication (1/2-one unit). Essential elements for speech 
communication as described in this subsection shall be effective September 1994. 
Speech communication shall include the following essential elements.
(1)  Communication as process. The student shall be provided opportunities to:
(A) demonstrate awareness of the importance of communication in daily 
interaction;
(B) demonstrate an understanding of the components of the communication process 
and their interrelationships;
(C) demonstrate understanding of the components of the listening process and 
their interrelatedness;
(D) demonstrate understanding of the basic principles of communication as a 
basis for effective interaction; and
(E) describe the ethical and social responsibilities of a communicator.
(2)  Communication in interpersonal interaction. The student shall be provided 
opportunities to:
(A) demonstrate competence in using appropriate language skills in a variety of 
interpersonal situations;
(B)  demonstrate competence in using appropriate nonverbal behaviors in a 
variety of interpersonal situations;
(C) demonstrate competence in reflective and empathic listening in a variety of 
interpersonal situations;
(D)  develop proficiency in assessing and using information, value judgments, 
and logical thinking processes for managing conflict, solving problems, and 
making decisions in a variety of social, academic, or occupational situations; 
and
(E) demonstrate understanding of interpersonal interaction through evaluation of 
the interpersonal skills of self and others.
(3)  Communication in groups. The student shall be provided opportunities to:
(A) demonstrate an awareness of the importance of groups in democratic process;
(B) analyze the purposes and functions of a variety of informal and formal 
groups;
(C) analyze the roles of group members or participants in a variety of informal 
and formal groups;
(D)  demonstrate competence in the use of verbal and nonverbal skills in groups;
(E) demonstrate competence in problem solving and decision making in group 
process;
(F) demonstrate effective use of parliamentary procedure in legislative group 
settings; and
(G) demonstrate competence in evaluating group effectiveness.
(4) Communication in public-speech preparation. The student shall be provided 
opportunities to:
(A)  demonstrate competence in choosing and limiting topics for speeches;
(B) demonstrate competence in choosing specific purposes for the speech from 
among informing, persuading, or promoting social cohesion;
(C)  demonstrate competence in using effective research skills to gather 
information and support data for speeches;
(D) demonstrate competence in organizing and outlining speeches through 
appropriate use of logical patterns of organization to support the topic and 
purpose;
(E) demonstrate competence in using logical, ethical, and emotional proofs and 
appeals for support and clarification of ideas;
(F) demonstrate competence in composing effective introductions, transitions, 
and conclusions for speeches; and
(G) demonstrate competence in writing manuscripts for speeches in manuscript or 
memorized presentations and/or organizing notes for extemporaneous speeches.
(5) Communication in public-speech presentation. The student shall be provided 
opportunities to:
(A) demonstrate competence in using effective rehearsal strategies to overcome 
communication apprehension, build self-confidence, enhance the sense of purpose, 
and allow revision of speech choices;
(B) demonstrate competence in using a variety of methods for delivering 
speeches;
(C) demonstrate effective verbal skills and language choices in presenting 
speeches;
(D) demonstrate effective use of voice and diction in presenting speeches; and
(E) demonstrate effective use of posture, movement, gesture, facial expression, 
and eye contact in presenting speeches.
(6) Communication in public-speech evaluation. The student shall be provided 
opportunities to:
(A) demonstrate competence in critical listening by analyzing and evaluating 
class, public, or media presentations of speeches;
(B) demonstrate competence in analyzing and evaluating written speech models; 
and
(C) demonstrate competence in presenting and justifying written and oral 
evaluations of speeches.
(rr) Debate I, II, III (1/2-one unit). Essential elements for Debate I, II, III 
as described in this subsection shall be effective September 1995. Debate I, II, 
III shall provide a program that includes the following essential elements.
(1) Skills of analysis. The student shall be provided opportunities to:
(A) demonstrate competence in distinguishing among propositions of fact, value, 
and policy;
(B) demonstrate skills in analyzing and interpreting various propositions;
(C) demonstrate skills in identifying issues within a given proposition and 
their implications for case development; and
(D) demonstrate skills in evaluating propositions and related issues presented 
by classmates or by political, religious, or social advocates in the public 
arena.
(2) Logical and critical thinking. The student shall be provided opportunities 
to:
(A) demonstrate skills in distinguishing among and utilizing various forms of 
logical and critical thinking; and
(B) demonstrate skills in evaluating the logical and critical thinking of self 
and others through the identification of fallacies and the application of 
criteria specific to any form of reasoning.
(3)  Research skills. The student shall be provided opportunities to:
(A)  demonstrate skills in effective use of a wide variety of primary and 
secondary sources;
(B) demonstrate understanding of types of proof appropriate for debate;
(C) demonstrate competence in source citation and note-taking techniques; and
(D) demonstrate use of ethical guidelines for debate research and use of 
evidence in debate.
(4)  Debate formats. The student shall be provided opportunities to:
(A)  demonstrate understanding of the distinctive characteristics of a variety 
of debate formats; and
(B) demonstrate competence in the use of cross-question techniques.
(5) Case construction skills for propositions of value. The student shall be 
provided opportunities to:
(A)  demonstrate understanding of the strategies for case construction and 
argumentation in Lincoln-Douglas debate;
(B) demonstrate understanding of universal values which underlie the issues 
inherent within a given proposition of value;
(C) demonstrate competence in applying universal values in the analysis of a 
given proposition of value;
(D) demonstrate competence in developing and supporting a line of affirmative 
argumentation relative to the appropriate universal value which would cause the 
audience to accept the proposition; and
(E) demonstrate competence in developing and supporting a line of negative 
argumentation relative to the universal value which would cause the audience to 
reject the proposition.
(6) Case construction skills for propositions of policy. The student shall be 
provided opportunities to:
(A) demonstrate understanding of the strategies for case construction and 
argumentation in standard and/or cross-examination debate;
(B) demonstrate understanding of the affirmative responsibilities and options in 
case construction;
(C) demonstrate understanding of the negative responsibilities and options in 
case construction;
(D)  demonstrate skills in selecting the most viable approach to an affirmative 
case from a variety of approaches for a given proposition;
(E)  demonstrate skills in selecting the most viable negative approaches to a 
given proposition from a variety of negative approaches; and
(F)  demonstrate skills in constructing briefs.
(7) Presentation skills. The student shall be provided opportunities to:
(A) demonstrate effective use of verbal skills for speech presentation;
(B) demonstrate effective use of nonverbal skills for speech presentation;
(C)  demonstrate effective communication skills in the presentation of speeches 
appropriate for the audience and debate format; and
(D) demonstrate appropriate extension of ethics and courtesy to the opponent(s) 
and the audience.
(8) Refutation skills. The student shall be provided opportunities to:
(A) demonstrate skills in the oral and/or written evaluation of arguments;
(B) demonstrate skills in listening to and flowing arguments in a debate;
(C) demonstrate effective refutation of arguments within the given debate 
format; and
(D) demonstrate the ability to extend cross-questioning into formal refutation.
(9) Evaluation skills. The student shall be provided opportunities to:
(A) demonstrate skills in evaluating case construction, refutation, and 
presentation of debate by classmates, public figures, and self; and
(B)  demonstrate skill in presenting written and/or oral critiques of debates.
(ss) Public Speaking I, II, III (1/2-one unit). Essential elements for Public 
Speaking I, II, III as described in this subsection shall be effective September 
1995. Public Speaking I, II, III shall provide a program that includes the 
following essential elements.
(1) A rhetorical perspective. The student shall be provided opportunities to:
(A) demonstrate awareness of the role of classical rhetoric in shaping Western 
thought;
(B)  demonstrate awareness of the roles of the classical canons of invention, 
organization, style, memory, and delivery in public speaking;
(C)  demonstrate awareness of the impact of modern public address in swaying 
public opinion and bringing about change;
(D) demonstrate understanding of the concept of freedom of speech and the 
ethical responsibilities of the communicator in a democracy; and
(E) analyze outstanding models for public speeches throughout history.
(2) Speech form. The student shall be provided opportunities to:
(A) demonstrate understanding of the critical attributes of a speech given for 
informing;
(B) demonstrate understanding of the critical attributes of a variety of 
speeches given for the purpose of persuading, such as speeches to advance 
propositions of fact, value, problem, and policy; and
(C) demonstrate understanding of the critical attributes of speeches given for 
special occasions such as after-dinner speeches, graduation speeches, acceptance 
speeches, inaugural addresses, eulogies, and/or keynote speeches.
(3) Planning a speech. The student shall be provided opportunities to:
(A) demonstrate use of effective criteria for selecting and limiting topics for 
speeches;
(B) demonstrate use of effective criteria for selecting purposes for speeches;
(C) demonstrate proficiency in conducting research through the use of a variety 
of primary and secondary sources; and
(D) demonstrate proficiency in evaluating speakers' choices of topics, purposes, 
and supporting data through the analysis of written and oral models of 
contemporary speeches.
(4) Organizing a speech. The students shall be given opportunities to:
(A) demonstrate proficiency in choosing an appropriate pattern of organization 
to support the chosen topic and purpose of a speech;
(B) demonstrate proficiency in preparing an outline consisting of an 
introduction, transitions, body, and a conclusion reflecting the chosen pattern 
of organization; and
(C) evaluate the organization of speeches through the analysis of written and 
oral models of contemporary speeches.
(5) Using supporting and amplifying devices. The students shall be given 
opportunities to:
(A) demonstrate proficiency in the use of ethical criteria for choosing 
supporting and amplifying devices and emotional and value appeals;
(B) demonstrate proficiency in choosing proofs which meet standard tests of 
evidence;
(C) demonstrate proficiency in choosing logical, ethical, emotional, and value 
proofs and appeals that enhance the speaker's topic, purpose, and tone;
(D)  demonstrate proficiency in the selection of appropriate devices for 
introductions and conclusions; and
(E) evaluate speakers' choices of supporting and amplifying devices through the 
analysis of written and oral models of contemporary speeches.
(6) Writing a speech. The student shall be provided opportunities to:
(A) demonstrate proficiency in choosing appropriate language strategies to 
achieve clarity, force, and aesthetic effect and to enhance the subject, 
purpose, appeal, and tone of the speech;
(B) demonstrate proficiency in the use of appropriate rhetorical and stylistic 
devices; and
(C) evaluate speakers' choices of language strategies, rhetorical devices, and 
stylistic devices through the analysis of written and oral models of 
contemporary speeches.
(7)  Rehearsing and presenting a speech. The student shall be provided 
opportunities to:
(A) demonstrate proficiency in using effective rehearsal strategies to reduce 
communication apprehension, develop self-confidence, and facilitate command of 
information and ideas;
(B)  demonstrate proficiency in using effective rehearsal strategies to 
accommodate a variety of types of delivery;
(C) demonstrate proficiency in using effective rehearsal strategies to develop 
effective verbal, vocal, and physical skills for delivering speeches;
(D) demonstrate proficiency in using effective rehearsal strategies to promote 
the effective use of notes, manuscripts, podium, microphone, visual aids, and/or 
electronic devices;
(E) demonstrate proficiency in making original speeches which indicate the use 
of effective choices of topic and purpose, appropriate organization, effective 
use of proofs and appeals, effective language choices, and skills gained in 
rehearsal;
(F) demonstrate proficiency in communicating a clear sense of purpose and 
maintaining a lively sense of interaction with an audience; and
(G) participate in cooperative activities with classmates to build and enhance 
presentation skills.
(8) Evaluating a speech. The student shall be provided opportunities to:
(A) demonstrate proficiency in critical listening by presenting an oral and/or 
written analysis of oral presentations heard in class, in public, or through the 
use of audio or video recordings or film; and
(B) demonstrate proficiency in rhetorical analysis through oral and/or written 
critiques of written models of public speeches.
(tt) English as a Second Language I, II, III, grades 9-12, (1/2-one unit). 
Essential elements for English as a Second Language I, II, III as described in 
this subsection shall be effective September 1992. English as a Second Language 
I, II, III shall include the following essential elements which include 
recursive processes as well as products within integrated strands. The student 
shall develop an awareness of similarities and differences between first 
language and English.
(1) Integrated listening and speaking behaviors to receive and produce meaning. 
The student shall be presented opportunities to:
(A) listen attentively in different settings for a variety of purposes:
(i) focus attention on and listen to both adult and peer speakers during large 
and small group interactions;
(ii) listen to receive direction, gain information, and enhance appreciation of 
language in a variety of situations including content area (e.g., mathematics, 
science, social studies) ;
(iii) respond to a speaker by retelling what was heard, by asking questions, 
and/or by contributing information; and
(iv) analyze and evaluate the intent and content of the speaker's message;
(B) speak fluently in different settings for a variety of purposes and 
audiences:
(i)  speak clearly and at an appropriate rate;
(ii) use a variety of words to convey meaning;
(iii) express personal ideas, feelings, and experiences;
(iv) entertain others with stories, poems, and dramatic activities;
(v) give directions;
(vi)  share information;
(vii) persuade others using language appropriate to the listener; and
(viii) develop skill in using the conventions of English to produce effective 
oral communication.
(2)  Integrated writing and language concepts and skills, using written and oral 
composing processes to plan and generate both oral and written compositions for 
a variety of purposes and in a variety of modes. The student shall be provided 
opportunities to:
(A) prewrite and plan for specific purposes and modes, using material from 
sources such as personal experience and literature and using idea-generating 
strategies including conferencing where appropriate;
(B) draft compositions for specific audiences and purposes in a variety of 
modes:
(i) write for expressive, informative, persuasive, and literary purposes;
(ii) use narrative, descriptive, classificatory, and evaluative modes; and
(iii) write paragraphs, multi-paragraph compositions, and compositions 
incorporating information from sources other than personal experience;
(C) revise compositions using self-assessment, peer interaction, conferences, 
and individualized techniques:
(i)  evaluate content, organization, topic development, appropriate transition, 
clarity of language, and appropriate word and sentence variety according to the 
purpose and audience for which the piece is intended; and
(ii) proofread written work for effective use of parts of speech; conventional 
usage and syntax; conventional punctuation, capitalization, spelling, and 
manuscript form as well as legibility;
(D) choose appropriate words to convey intended meaning while recognizing the 
meanings and uses of colloquialism, slang, idiom, and jargon;
(E) share products of written composition in a variety of ways; and
(F) apply language concepts and skills in the context of oral composition.
(3) Integrated literature and reading concepts and skills. Using meaningful, 
culturally valuable pieces of literature, the student shall be provided 
opportunities to:
(A) understand and analyze the major differences among poems, short stories, 
plays, and nonfiction as the characteristics of each genre contribute to the 
meaning of the individual work;
(B) understand and analyze the basic sound devices and figurative language as 
they contribute to meaning;
(C) recognize cultural attitudes and customs in literary selections;
(D) broaden and deepen experience through imaginative and emotional engagement 
with literature;
(E) understand and analyze the elements of fiction as they contribute to 
meaning;
(F) participate in cooperative learning and a variety of oral activities to 
elicit meaning from literature;
(G) expand vocabulary through determining word meanings by context clues and 
using specialized dictionaries for determining meaning;
(H) use comprehension skills in oral and written context:
(i) identify the stated or implied main idea of a selection;
(ii) recognize relevant details;
(iii) identify the sequential order of events;
(iv)  perceive cause and effect relationships;
(v) distinguish between fact and nonfact;
(vi) draw conclusions and make inferences (e.g., in determining characterization 
and theme); and
(vii)  predict outcomes and future actions (e.g., in anticipating plot sequence) 
;
(I) develop study skills:
(i) locate information using the format and organization of a book and 
appropriate reference material such as the dictionary, encyclopedia, almanac, 
and bibliographies; and
(ii)  vary rate of reading according to purpose.
(4) Culture. Learning concepts that result in knowledge and awareness of the 
history and culture of another people with a range of situations. The student 
shall be provided opportunities to:
(A) learn the behaviors of the school culture;
(B) recognize and respect differences in behavior and expressions of other 
cultures;
(C) value one's own culture and heritage; and
(D) develop awareness of the relationships between language and culture.
sec.75.63. Mathematics.
(a)-(b) (No change.)
(c)  Pre-algebra (one unit). Essential elements described in this subsection for 
pre-algebra shall be superseded by the essential elements described in 
subsection (y) of this section effective September 1992. Pre-algebra shall 
include the following essential elements.
(1)-(6) (No change.)
(d)  Informal geometry (one unit). Essential elements described in this 
subsection for informal geometry shall be superseded by the essential elements 
described in subsection (w) of this section effective September 1992. Informal 
geometry shall include the following essential elements.
(1)-(10) (No change.)
(e) Algebra I (one unit). Algebra I shall include the following essential 
elements.
(1) Comparison of the real number system and its various subsystems in terms of 
structural characteristics including operations. The student shall be provided 
opportunities to:
(A)  classify real numbers as members of the appropriate subset of real numbers;
(B) identify and use properties of the real numbers;
(C)  investigate the density property of real numbers: that between every two 
real numbers there exists another real number;
(D) investigate the order of operations;
(E) evaluate monomials with integral exponents; and
(F) compare algebraic and geometric definitions of absolute value.
(2) Algebraic representation, solution, and evaluation of problem situations. 
The student shall be provided opportunities to:
(A) write and evaluate linear expressions from verbal descriptions;
(B) use the properties of equality or models to explain and justify the 
equation-solving process;
(C) determine the solution to problem situations by writing and solving linear 
one-variable equations and inequalities;
(D) make a convincing informal argument, orally or in writing, justifying the 
solution to a problem situation;
(E) solve literal equations for a specified linear variable;
(F) solve systems of equations using linear combinations and substitution as 
appropriate;
(G) use systems of equations in applications and problem-solving situations; and
(H) solve absolute value equations and inequalities.
(3) Graphing as a tool to interpret linear relations, functions, and 
inequalities. The student shall be provided opportunities to:
(A) investigate and compare the properties of relations and functions;
(B) describe the domains and ranges of various functions and relations;
(C) identify the relationships among a linear equation, a set of ordered pairs 
of numbers, and a set of points on a coordinate plane;
(D) explore the concepts of slope and intercept by changing the parameters of a 
linear equation;
(E) graph a line given characteristics such as two points, one point and slope, 
table, etc.;
(F) graph a line from its equation in point-slope, general, slope-intercept, or 
nonstandard forms;
(G) design a statistical experiment to study a problem, recording the results 
using techniques such as scatter plots, and communicating the outcomes;
(H) write an equation of a line given its graph or description;
(I)  use linear equations as models of real-world problem situations;
(J)  make predictions from scatter plots that fit linear models;
(K)  solve systems of linear equations;
(L) graph linear inequalities with two variables;
(M) graph systems of inequalities; and
(N)  explore the relationship between the graph of an absolute value function 
such as y = |AX + B| + and the parameters A, B, and C, using computer graphing 
techniques.
(4) Quadratic equations. The student shall be provided opportunities to:
(A) evaluate quadratic functions for one and for many values of the variable, 
using a computer or calculator where appropriate;
(B) explore the effects of simple parameter changes on the graphs of quadratic 
relations, using computer graphing techniques where appropriate;
(C) obtain decimal approximations for the solutions of quadratic equations, 
using the quadratic formula and a calculator; and
(D) use quadratic equations to make predictions in problem situations.
(5)  Polynomials. The student shall be provided opportunities to:
(A)  use the definition of polynomial to distinguish between expressions that 
are polynomials and expressions that are not;
(B) classify polynomials by degree and number of terms;
(C) add, subtract, multiply, and divide polynomials, using concrete models where 
appropriate;
(D) apply the laws of exponents to include zero and negative integral exponents; 
and
(E)  factor simple polynomials using concrete models where appropriate.
(6)  Rational expressions. The student shall be provided opportunities to:
(A) evaluate rational expressions, avoiding division by zero;
(B)  apply operations on simple rational expressions (linear or monomial 
numerators and denominators only);
(C) solve rational equations with linear numerators and denominators;
(D) solve problem situations using ratio and proportion;
(E) use the definition of probability as a ratio of numbers of outcomes to solve 
problems involving uncertainty;
(F)  apply the concept of dimensional analysis (carrying units throughout a 
computation) in problem situations, to determine appropriate units for 
denominate numbers; and
(G) perform operations on numbers in scientific notation, both mentally and by 
calculator, and use these numbers in problem situations.
(7) Properties of and operations with square roots. The student shall be 
provided opportunities to:
(A) use the calculator to approximate numeric radical expressions involving 
square roots;
(B)  simplify algebraic radical expressions involving square roots;
(C)  add, subtract, multiply, and divide numeric and algebraic radical 
expressions involving square roots;
(D) solve simple radical equations involving square roots; and
(E) use the Pythagorean Theorem in problem situations.
(f) Algebra II (one unit). Algebra II shall include the following essential 
elements:
(1) Development of mathematical structure. The student shall be provided 
opportunities to:
(A) compare and contrast the real number system and its various subsystems in 
terms of structural characteristics;
(B) investigate examples and nonexamples of fields using the real number system 
and its various finite and infinite subsystems; and
(C) develop the complex number system and its operations.
(2) Quadratic functions. The student shall be provided opportunities to:
(A) solve quadratic equations by completing the square;
(B) develop and apply the quadratic formula;
(C) find a quadratic equation given its roots;
(D) explore the effects of simple parameter changes on the graph of a quadratic 
function, using computer graphing techniques where appropriate;
(E) use characteristics of a quadratic function to sketch the related curve;
(F) determine the equation of quadratic functions from their graphs; and
(G) use quadratic functions as models in real-world problem situations.
(3) Quadratic relations. The student shall be provided opportunities to:
(A) explore the graphs of algebraic representations of conic sections and make 
generalizations that allow classification of these algebraic representations as 
circles, ellipses, hyperbolas, or parabolas, using calculators or computers 
where appropriate;
(B) verify graphs of conic sections using computer graphing techniques where 
appropriate;
(C) use characteristics of conic sections to sketch the related curves;
(D) determine equations of conic sections from their graphs; and
(E) use quadratic relations as models in real-world problem situations.
(4) Systems of equations. The student shall be provided opportunities to:
(A) use the linear combination (addition-subtraction) method to solve systems of 
three linear equations in three variables;
(B) use augmented matrices by hand or by computer to solve two- or three-
variable linear systems;
(C) apply linear programming techniques to model and solve real-world 
situations, using the computer or calculator, where appropriate; and
(D) solve quadratic-quadratic and quadratic-linear systems, and confirm the 
solution by computer graphing techniques.
(5) Numerical methods and higher degree polynomials. The student shall be 
provided opportunities to:
(A) use successive approximations on the calculator or computer to solve higher 
degree equations;
(B) apply synthetic substitution to find functional values of higher degree 
polynomials;
(C) use the Fundamental Theorem of Algebra and the Factor Theorem to factor 
higher degree polynomials;
(D)  graph higher degree polynomial functions using computer graphing 
techniques;
(E) solve higher degree polynomial equations using computer graphing techniques; 
and
(F) use an iterative process (algebraic or geometric) to approximate irrational 
roots of higher degree functions.
(6)  Exponential and logarithmic functions. The student shall be provided 
opportunities to:
(A) investigate the concept of nth root and convert between exponential and 
radical forms of an expression;
(B) extend the properties of exponents to include rational exponents;
(C) investigate exponential functions and their inverses to develop the 
definition of logarithm;
(D) explore the graphs of exponential and logarithmic functions using computer 
graphing techniques;
(E) convert between logarithmic and exponential forms of an equation;
(F) apply properties of logarithms to solve equations; and
(G) apply logarithmic and exponential functions in problem situations using the 
computer or calculator.
(7) Rational algebraic functions. The student shall be provided opportunities 
to:
(A)  simplify complex fractions;
(B) graph rational algebraic functions (using computer graphing techniques where 
appropriate) to develop an intuitive understanding of the concept of limit; and
(C) use direct and inverse variation functions as models to make predictions in 
real-world situations.
(8) Sequences and series. The student shall be provided opportunities to:
(A) investigate patterns in given sequences and use the patterns or recursive or 
generator formulas to find additional terms;
(B)  investigate and graph geometric and arithmetic sequences;
(C) find the nth partial sum of geometric or arithmetic series and find n given 
the nth term or partial sum;
(D) investigate convergent geometric series;
(E) use sequences and series as models in real-world problem situations;
(F) use the Binomial Theorem to expand powers of binomial expressions; and
(G) solve enumeration problems involving permutations and combinations.
(9) Data handling and analysis. The student shall be provided opportunities to:
(A) recognize the importance of unbiased sampling and valid reasoning in 
statistical arguments;
(B) select an appropriate sampling method for a given real-world problem 
situation;
(C)  interpret probabilities relative to the normal distribution;
(D)  design a simple statistical experiment to test a hypothesis generated by a 
real-world problem situation and interpret the results; and
(E) use computer simulation methods to represent and solve problem situations 
involving uncertainty.
(g) Geometry (one unit). Geometry shall include the following essential 
elements.
(1) Axiomatic systems. The student shall be provided opportunities to:
(A) distinguish intuitively between the concepts of validity of an argument and 
truth of a statement;
(B)  distinguish between inductive and deductive reasoning;
(C) use conditional statements in logical arguments;
(D) investigate the relationship among a conditional statement and its converse, 
inverse, and contrapositive;
(E) identify patterns of inference that produce valid conclusions and apply in 
real-world situations;
(F) apply logical arguments to geometric problem situations; and
(G) explore Euclidian geometry as an axiomatic system (undefined terms, defined 
terms, postulates, and theorems).
(2) Lines, segments, and angles. The student shall be provided opportunities to:
(A) use a coordinate approach to:
and betweenness properties;
(ii)  investigate slopes of parallel and perpendicular lines using computer 
graphing techniques; and
(iii) write equations for lines given prescribed geometric conditions (locus);
(B) use a synthetic approach to:
(i) construct figures using a computer where appropriate;
(ii) make a convincing informal argument, orally or in writing, to justify angle 
relationships such as vertical, supplementary, complementary, congruent, and 
angles formed by transversals; and
(iii) write formal proofs related to parallel lines;
(C) use a vector approach to:
(i) determine whether two line segments are parallel; and
(ii)  determine whether two line segments are perpendicular.
(D)  solve real-world problems involving lines, segments, and angles.
(3)  Triangles. The student shall be provided opportunities to:
(A) use a coordinate approach to:
(i) investigate specific examples of properties of segments associated with 
triangles (altitudes, medians, perpendicular bisectors, angle bisectors, etc.);
(ii) make generalizations inductively about these properties; and
(iii) make a convincing informal argument orally or in writing to validate these 
generalizations;
(B) use a transformational approach to:
(i)  express translations, rotations, reflections, and dilations as functions; 
and
(ii) explore congruence and similarity through transformations;
(C) use a synthetic approach to:
(i) discover triangle congruence postulates through construction;
(ii) use triangle congruence propositions in proofs;
(iii) explore triangle similarity postulates and proportionality of associated 
linear measures (sides, altitudes, medians, angle bisectors, perimeters, etc.);
(iv)  compare various proofs of the Pythagorean Theorem;
(v)  investigate special right triangles;
(vi) develop trigonometric functions using the right triangle (sin, cos, tan);
(vii)  use theorems related to angle measures of triangles in formal proofs; and
(viii) investigate triangle inequalities.
(D) solve real-world problems involving triangles.
(4) Other polygons. The student shall be provided opportunities to:
(A) use a coordinate approach to:
(i) explore specific examples of properties of quadrilaterals;
(ii) make generalizations inductively for these properties; and
(iii) make a convincing informal argument orally or in writing to validate these 
generalizations;
(B) use a transformational approach to:
(i) explore symmetry of polygons; and
(ii) generalize concepts of congruence and similarity;
(C)  use a synthetic approach to:
(i) prove properties of quadrilaterals;
(ii) use properties of quadrilaterals in proofs;
(iii) explore specific examples of functional angle relationships in polygons, 
including regular polygons;
(iv) make generalizations inductively about these relationships; and
(v) make a convincing informal argument orally or in writing to validate these 
functional relationships;
(D) Solve real-world problems involving polygons.
(5) Circles. The student shall be provided opportunities to:
(A)  use a coordinate approach to graph equations and circles:
(i)  use the distance formula to develop the equations for circles; and
(ii) graph equations of circles;
(B) use a synthetic approach to:
(i) investigate lines, segments, and angles related to circles;
(ii) investigate inscribed and circumscribed circles using a computer; and
(iii) solve geometric problems involving segments and angles related to circles;
(C) solve real-world problems involving circles.
(6) Solid geometry. The student shall be provided opportunities to:
(A) use a synthetic approach to:
(i)  investigate properties of polyhedra using concrete models (and computers 
where possible);
(ii) investigate properties of cylinders, cones, and spheres using concrete 
models (and computers where possible);
(iii)  draw three-dimensional figures (using computers where possible); and
(iv) build three-dimensional models;
(B) use a transformational approach to explore symmetry of polyhedra and spheres 
in space; and
(C) solve real-world problems involving three-dimensional figures.
(7) Measurement. The student shall be provided opportunities to:
(A) use a transformational approach to:
(i) explore distance and area as invariant conditions under translations, 
rotations, and reflections;
(ii) explore the ratio of distances as an invariant condition under dilations; 
and
(iii) explore angle measure as an invariant condition under translations, 
rotations, reflections, and dilations.
(B) use a synthetic approach to:
(i) make a convincing informal argument (using models and computers where 
possible) to validate area and volume formulas;
(ii) investigate the circumference and area of a circle as the limits of 
perimeters and areas of inscribed regular polygons;
(iii) use ratio to investigate arc length and areas of sectors of circles; and
(iv) investigate the proportional relationships among linear measures, areas, 
and volumes in similar figures;
(C) solve real-world problems involving measurement.
(h) Trigonometry (1/2 unit). Trigonometry shall include the following essential 
elements.
(1)  Circular/trigonometric functions. The student shall be provided 
opportunities to:
(A) explore periodic real-world phenomena;
(B)  apply definitions of sine, cosine, tangent, secant, cosecant, and cotangent 
functions;
(C) analyze the interrelationship between circular and trigonometric 
representations of functions;
(D) find exact values of special cases of trigonometric functions; and
(E) find approximate values of trigonometric functions using the computer or 
calculator.
(2)  Graphs of circular/trigonometric functions. The student shall be provided 
opportunities to:
(A) investigate the effects of the parameters in the equation on the graph of a 
trigonometric function;
(B) use these generalizations to sketch circular/trigonometric functions;
(C) verify sketched graphs of trigonometric functions using computer graphics;
(D)  write the equation given the graph of a trigonometric function; and
(E)  use circular functions that model real-world phenomena to solve problems.
(3) Properties of circular/trigonometric functions and their inverses. The 
student shall be provided opportunities to:
(A) use trigonometric properties, including those involving functions of more 
than one argument, to transform a trigonometric expression to another equivalent 
form;
(B)  verify trigonometric identities using computer graphics;
(C)  investigate the properties of inverse functions and relations;
(D)  analyze the interrelationship between circular/trigonometric functions and 
their inverses;
(E) solve trigonometric equations, and verify by accurate graphing; and
(F) use inverses of trigonometric functions that model real-world phenomena to 
solve problems.
(4) Triangle problems. The student shall be provided opportunities to:
(A) solve right triangle problems that model real-world situations;
(B) find the area of a triangle by trigonometric techniques;
(C) derive the Law of Sines and the Law of Cosines and apply these laws to 
problem situations; and
(D)  use vectors to solve real-world problems.
(5) Applications of trigonometry to other areas of mathematics. The student 
shall be provided opportunities to:
(A) analyze the connection between circular/trigonometric functions and polar 
coordinates;
(B) analyze the connection between circular/trigonometric functions and complex 
numbers; and
(C) analyze the connection between circular/trigonometric functions and series.
(i) Elementary analysis (1/2 unit). Essential elements described in this 
subsection for elementary analysis shall be superseded by the essential elements 
described in subsection (z) of this section effective September 1994. Elementary 
analysis shall include the following essential elements.
(1)-(6) (No change.)
(j) Analytic geometry (1/2 unit) . Essential elements described in this 
subsection for analytic geometry shall be superseded by the essential elements 
described in subsection (aa) of this section effective September 1994. Analytic 
geometry shall include the following essential elements.
(1)-(6) (No change.)
(k) Precalculus (1/2-one unit). Essential elements described in this subsection 
for precalculus shall be superseded by the essential elements described in 
subsection (bb) of this section effective September 1994. Precalculus shall 
include the following essential elements.
(1)-(10) (No change.)
(l) Mathematics of consumer economics (1/2-1 unit). Essential elements described 
in this subsection for mathematics of consumer economics shall be superseded by 
the essential elements described in subsection (x) of this section effective 
September 1992. (The mathematics of money course will replace the mathematics of 
consumer economics course.) Mathematics of consumer economics shall include the 
following essential elements.
(1)-(4) (No change.)
(m)-(o) (No change.)
(p) Calculus (1/2-one unit). Essential elements described in this subsection for 
calculus shall be superseded by the essential elements described in subsection 
(cc) of this section effective September 1995. Calculus shall include the 
following essential elements.
(1)-(5) (No change.)
(q) -(v) (No change.)
(w) Informal geometry (one unit). Essential elements for informal geometry as 
described in this subsection shall be effective September 1992. Informal 
geometry shall include the following essential elements.
(1)-(10) (No change.)
(x) Mathematics of money (1/2-one unit). Essential elements for mathematics of 
money as described in this subsection shall be effective September 1992. (The 
mathematics of money course will replace the mathematics of consumer economics 
course.) Mathematics of money shall include the following essential elements.
(1)-(5) (No change.)
(y) Pre-Algebra (one unit). Essential elements for pre-algebra as described in 
this subsection shall be effective September 1992. Pre-algebra shall include the 
following essential elements.
(1)-(6) (No change.)
(z) Elementary analysis 2-1 unit)/2 unit). Essential elements for elementary 
analysis as described in this subsection shall be effective September 1994. 
Elementary analysis shall include the following essential elements.
(1) Properties of the real number system and other mathematical systems. The 
student shall be provided opportunities to:
(A) understand the structure of mathematical systems (undefined terms, 
operations, postulates, and theorems);
(B) investigate groups, rings, and fields;
(C)  investigate properties of ordered fields and construct appropriate proofs; 
and
(D) use matrices to solve equations, using computers where appropriate.
(2) Relations, functions, and their graphs. The student shall be provided 
opportunities to:
(A) explore the characteristics of functions, including discrete functions;
(B) graph functions and relations, including the use of computer/calculator 
graphics technology;
(C) identify increasing and decreasing functions, including the use of 
computer/calculator graphics technology;
(D) identify and graph periodic functions, including the use of 
computer/calculator graphics technology;
(E) understand the meaning of absolute value and the distance formula;
(F) use symmetries;
(G) perform operations on functions;
(H) explore characteristics of composite and inverse functions;
(I)  model problem situations with functions, including the use of 
computer/calculator graphics technology;
(J) represent equations from graphs for discrete and continuous functions;
(K) investigate the behavior of graphs of algebraic and transcendental functions 
by changing parameters;
(L) use graphic representations for data (e.g., boxplots, stem-and-leaf, 
lineplots, histograms, scatterplots), including the use of computer/calculator 
graphics technology; and
(M) explore the application of linear regression to mathematics modeling using 
real world data, including the use of computer/calculator graphics technology.
(3)  Polynomial functions. The student shall be provided opportunities to:
(A) use linear functions, linear inequalities, and models;
(B)  use linear transformations, geometric transformations, and models;
(C)  determine and apply relative maximum and minimum values, including the use 
of computer/calculator graphics technology;
(D) identify intervals on which the polynomial function is increasing or 
decreasing;
(E) model problem situations with polynomial functions;
(F) use the Remainder Theorem and the Factor Theorem;
(G) use synthetic division;
(H)  use the Rational Root Theorem;
(I) use Descartes' Rule of Signs, the Upper and Lower Bounds Theorem, and the 
Location Theorem;
(J) find roots of polynomials, including the use of computer/calculator graphics 
technology;
(K) apply the Fundamental Theorem of Algebra;
(L)  graph polynomial functions, including the use of computer/calculator 
graphics technology;
(M) examine the continuity and end behavior of a function, including the use of 
computer/calculator graphics technology; and
(N) solve and graph polynomial inequalities.
(4) Rational functions and functions involving radicals. The student shall be 
provided opportunities to:
(A) investigate the limit concept, including the use of computer/calculator 
graphics technology;
(B) find vertical, horizontal, and slant asymptotes, including points of 
exclusion;
(C)  graph rational functions, including the use of computer/calculator graphics 
technology;
(D) apply rational functions to real problem situations;
(E) solve equations and inequalities with rational expressions;
(F)  investigate the graphs of radical functions, including the use of 
computer/calculator graphics technology;
(G) solve equations and inequalities involving radicals both algebraically and 
graphically, including the use of computer/calculator graphics technology; and
(H) find partial fractions.
(5) Exponential and logarithmic functions. The student shall be provided 
opportunities to:
(A) define and explore the characteristics of exponential functions (including 
base e), including the use of computer/calculator graphics technology;
(B) apply exponential functions (including data analysis) to other disciplines 
and societal situations, including the use of computer/calculator graphics 
technology;
(C) use laws of exponents to simplify expressions with positive and negative 
integral and rational exponents;
(D) define and explore the characteristics of logarithmic functions, including 
the use of computer/calculator graphics technology;
(E) use properties of logarithms;
(F) investigate the graphs of logarithmic functions, including the use of 
computer/calculator graphics technology;
(G) solve exponential and logarithmic equations, using algebraic and graphing 
methods, including the use of computer/calculator graphics technology;
(H) solve exponential and logarithmic inequalities, using algebraic and graphing 
methods, including the use of computer/calculator graphics technology;
(I) apply logarithms (including the natural logarithm), using calculators where 
appropriate; and
(J) study linear regression, residuals, and correlation as it relates to linear, 
exponential, and variation models.
(6) Sequences and series. The student shall be provided opportunities to:
(A) find specific terms of arithmetic/geometric sequences;
(B) find the general term of a sequence;
(C) write the sigma notation for a series and find the sum;
(D)  use mathematical induction to perform proofs;
(E) find the limit of a sequence and investigate convergent and divergent 
series, using technology where appropriate;
(F) use the Binomial Expansion Theorem to develop the Binomial Probability 
Distribution Function and explore the use of Monte Carlo simulations to 
reinforce abstract study of the Binomial Probability Distribution Function;
(G) explore concepts of expected value (mean), and standard deviation;
(H) explore patterns in sequences and series;
(I) apply sequences, series, and iterative procedures (e.g., fractals), using 
technology where appropriate; and
(J) investigate the series expansion of the sine and cosine functions and the 
Euler number e.
(7)  Second degree relations. The student shall be provided opportunities to:
(A) derive the equations for circles, parabolas, ellipses, and hyperbolas, using 
the locus definitions;
(B) graph second degree equations, including the use of computer/calculator 
graphics technology;
(C) perform transformations (including the use of matrices), including the use 
of computer/calculator graphics technology; and
(D) apply conics to real-world situations (including other disciplines).
(aa) Analytic geometry (1/2 unit). Essential elements for analytic geometry as 
described in this subsection shall be effective September 1994. Analytic 
geometry shall include the following essential elements.
(1)  Relations, functions, and their graphs. The student shall be provided 
opportunities to:
(A) explore the characteristics of functions, including discrete functions;
(B) graph functions and relations, including the use of computer/calculator 
graphics technology;
(C)  identify increasing and decreasing functions, including the use of 
computer/calculator graphics technology;
(D) use symmetries;
(E)  perform operations on functions;
(F) explore characteristics of composite and inverse functions;
(G) model problem situations with functions, including the use of 
computer/calculator graphics technology;
(H) represent equations from graphs for discrete and continuous functions;
(I) investigate the behavior of graphs of algebraic and transcendental functions 
by changing parameters;
(J) explore the analytic geometry of lines (to include parallel and 
perpendicular lines, angle of inclination, angle between two lines, coordinates 
of a point which divides a line segment in a given ratio, distance from a point 
to a line, and the equation of the family of lines having a given property);
(K) perform analytic proofs of geometric theorems;
(L) use linear transformations, geometric transformations, and models;
(M) investigate the limit concept, including the use of computer/calculator 
graphics technology;
(N) find vertical, horizontal, and slant asymptotes, including points of 
exclusion; and
(O) use curve fitting to describe problem situations.
(2) Space coordinates and surfaces. The student shall be provided opportunities 
to:
(A) use space coordinates;
(B) investigate the geometry of ordered triples;
(C) determine the angle between two planes;
(D)  determine the distance between a point and a plane;
(E) investigate surface of revolution and quadric surfaces;
(F) find parametric equations for given surface equations; and
(G) find normals and tangents in planes and space.
(3) Vectors and parametric equations. The student shall be provided 
opportunities to:
(A) investigate vectors in the plane;
(B) use vectors in space;
(C) use vector equations for lines and planes;
(D) find and apply dot and cross products of vectors;
(E) find and apply the angle between vectors;
(F)  apply vectors to real-world situations (e.g., force, navigation);
(G)  define and derive parametric equations;
(H) graph curves defined by parametric equations; and
(I) apply parametric equations (e.g., motion problems), including the use of 
computer/calculator graphics technology.
(4) Second degree relations. The student shall be provided opportunities to:
(A) derive the equations for circles, parabolas, ellipses, and hyperbolas, using 
the locus definitions;
(B) investigate loci with respect to points of intersections, tangents, and 
normals to the conic sections (to include families of lines which pass through 
curves);
(C) graph second degree equations, including the use of computer/calculator 
graphics technology;
(D) perform transformations (including the use of matrices), including the use 
of computer/calculator graphics technology; and
(E)  apply conics to real-world situations (including other disciplines).
(5) Complex numbers and polar coordinates. The student shall be provided 
opportunities to:
(A) represent complex numbers graphically;
(B)  use the trigonometric forms of complex numbers for finding powers and 
roots;
(C) transform equations and formulas from rectangular to polar coordinates and 
vice-versa;
(D) investigate equations of lines and conic sections in polar coordinates;
(E) explore the intersection of polar curves (by solving simultaneously for r, 
0); and
(F) graph equations in polar form, include the use of computer/calculator 
graphics technology.
(bb) Precalculus (1/2-one unit). Essential elements for precalculus as described 
in this subsection shall be effective September 1994. Precalculus shall include 
the following essential elements.
(1) Relations, functions and their graphs. The student shall be provided 
opportunities to:
(A) explore the characteristics of functions, including discrete functions;
(B) graph functions and relations, including the use of computer/calculator 
graphics technology;
(C) identify increasing and decreasing functions, including the use of 
computer/calculator graphics technology;
(D) identify and graph periodic functions, including the use of 
computer/calculator graphics technology;
(E) use symmetries;
(F) perform operations on functions;
(G) explore characteristics of composite and inverse functions;
(H) model problem situations with functions, including the use of 
computer/calculator graphics technology;
(I) represent equations from graphs for discrete and continuous functions;
(J) investigate the behavior of graphs of algebraic and transcendental functions 
by changing parameters;
(K) use graphic representations for data (e.g., boxplots, stem-and-leaf, 
lineplots, histograms, scatterplots), including the use of computer/calculator 
graphics technology; and
(L) explore the application of linear regression to mathematics modeling, using 
real world data; including the use of computer/calculator graphics technology.
(2) Polynomial functions. The student shall be provided opportunities to:
(A) use linear functions, linear inequalities, and models;
(B) explore the analytic geometry of lines (e.g., parallel and perpendicular 
lines, angle of inclination, angle between two lines, coordinates of a point 
which divides a line segment in a given ratio, distance from a point to a line, 
the equation of the family of lines having a given property);
(C) use linear transformations, geometric transformations, and models;
(D) determine and apply relative maximum and minimum values, including the use 
of computer/calculator graphics technology;
(E) identify intervals on which the polynomial function is increasing or 
decreasing;
(F) model problem situations with polynomial functions;
(G) use the Remainder Theorem and the Factor Theorem;
(H) use synthetic division;
(I) use the Rational Root Theorem;
(J) use Descartes' Rule of Signs, the Upper and Lower Bounds Theorem, and the 
location theorem;
(K) find roots of polynomials, including the use of computer/calculator graphics 
technology;
(L) apply the Fundamental Theorem of Algebra;
(M) graph polynomial functions, including the use of computer/calculator 
graphics technology;
(N)  examine the continuity and end behavior of a function, including the use of 
computer/calculator graphics technology; and
(O) solve and graph polynomial inequalities.
(3) Rational functions and functions involving radicals. The student shall be 
provided opportunities to:
(A)  investigate the limit concept, including the use of computer/calculator 
graphics technology;
(B) find vertical, horizontal, and slant asymptotes, including points of 
exclusion;
(C) graph rational functions, including the use of computer/calculator graphics 
technology;
(D)  apply rational functions to real problem situations;
(E) solve equations and inequalities with rational expressions;
(F) investigate the graphs of radical functions, including the use of 
computer/calculator graphics technology;
(G) solve equations and inequalities involving radicals both algebraically and 
graphically, including the use of computer/calculator graphics technology; and
(H) find partial fractions.
(4) Exponential and logarithmic functions. The student shall be provided 
opportunities to:
(A) define and explore the characteristics of exponential functions (including 
base e), including the use of computer/calculator graphics technology;
(B) apply exponential functions (including data analysis) to other disciplines 
and societal situations, including the use of computer/calculator graphics 
technology;
(C) use laws of exponents to simplify expressions with positive and negative 
integral and rational exponents;
(D) define and explore the characteristics of logarithmic functions, including 
the use of computer/calculator graphics technology;
(E) use properties of logarithms;
(F) investigate the graphs of logarithmic functions, including the use of 
computer/calculator graphics technology;
(G) solve exponential and logarithmic equations using algebraic and graphing 
methods, including the use of computer/calculator graphics technology;
(H) solve exponential and logarithmic inequalities using algebraic and graphing 
methods, including the use of computer/calculator graphics technology;
(I) apply logarithms (including the natural logarithm), using calculators where 
appropriate; and
(J) study linear regression, residuals, and correlation as it relates to linear, 
exponential, and variation models.
(5) Circular trigonometric functions, their properties, and applications. The 
student shall be provided opportunities to:
(A) find angle measurement using degrees and radians;
(B)  identify periodic functions, including the use of computer/calculator 
graphics technology;
(C) use applications of circular functions, including the use of 
computer/calculator graphics technology;
(D) find and apply inverse functions (including modeling), including the use of 
computer/calculator graphics technology;
(E) define the trigonometric functions;
(F) find values of the trigonometric functions using calculators;
(G) graph the trigonometric functions, including the use of computer/calculator 
graphics technology;
(H) solve right triangle problems, including the use of computer/calculator 
graphics technology;
(I)  solve general triangles (Law of Sines, Law of Cosines, and area of 
triangles) , including the use of computer/calculator graphics technology;
(J)  solve trigonometric equations;
(K) derive fundamental identities; and
(L) prove and use identities, including the use of computer/calculator graphics 
technology.
(6) Complex numbers and polar coordinates. The student shall be provided 
opportunities to:
(A)  represent complex numbers graphically;
(B) use the trigonometric forms of complex numbers for finding powers and roots;
(C) transform equations and formulas from rectangular to polar coordinates and 
vice versa; and
(D) graph equations in polar form, including the use of computer/calculator 
graphics technology.
(7) Vectors and parametric equations. The student shall be provided 
opportunities to:
(A)  investigate vectors in the plane;
(B) use vectors in space;
(C) use vector equations for lines and planes;
(D) find and apply dot and cross products of vectors;
(E) find and apply the angle between vectors;
(F) apply vectors to real-world situations (e.g., force, navigation);
(G) define and derive parametric equations;
(H) graph curves defined by parametric equations; and
(I) apply parametric equations (e.g., motion problems), including the use of 
computer/calculator graphics technology.
(8) Sequences and series. The student shall be provided opportunities to:
(A) find specific terms of arithmetic/geometric sequences;
(B) find the general term of a sequence;
(C) write the sigma notation for a series and find the sum;
(D)  use mathematical induction to perform proofs;
(E) find the limit of a sequence and investigate convergent and divergent 
series, using technology where appropriate;
(F) use the Binomial Expansion Theorem to develop the Binomial Probability 
Distribution Function and explore the use of Monte Carlo simulations to 
reinforce abstract study of the Binomial Probability Distribution Function;
(G) explore concepts of expected value (mean), and standard deviation;
(H) explore patterns in sequences and series;
(I) apply sequences, series, and iterative procedures (e.g., fractals), using 
technology where appropriate; and
(J) investigate the series expansion of the sine and cosine functions and the 
Euler number e.
(9)  Second degree relations. The student shall be provided opportunities to:
(A) derive the equations for circles, parabolas, ellipses, and hyperbolas, using 
the locus definitions;
(B) investigate loci with respect to points of intersections, tangents, and 
normals to the conic sections (to include families of lines which pass through 
curves);
(C) graph second degree equations, including the use of computer/calculator 
graphics technology;
(D) perform transformations (including the use of matrices), including the use 
of computer/calculator graphics technology; and
(E)  apply conics to real-world situations (including other disciplines).
(cc) Calculus (one unit). Essential elements for calculus as described in this 
subsection shall be effective September 1995. Calculus shall include the 
following essential elements.
(1) Concepts and skills associated with elementary functions. The student shall 
be provided opportunities to:
(A)  use algebraic, trigonometric, exponential, and logarithmic functions;
(B) investigate properties of functions, including:
(i) sum, product, quotient, composition, and inverse (including domain and range 
of each) ;
(ii) absolute value;
(iii) odd and even;
(iv)  zeros of a function; and
(v) one-to-one function;
(C)  use fundamental identities including addition formulas for trigonometric 
functions;
(D) graph functions, using a graphing calculator or computer, emphasizing:
(i) symmetry;
(ii) asymptotes; and
(iii) periodicity and amplitude.
(2) Concepts associated with the limit of a function. The student shall be 
provided opportunities to:
(A) investigate the definition of a limit experimentally using a calculator or a 
computer;
(B) represent the "SLICK" definition of the limit of a function graphically, and 
use this definition in proofs;
(C)  apply limit theorems and properties (e.g., the limit of a constant, a sum, 
a product, a quotient);
(D) investigate special limits, including:
(i) the limit defining the Euler number e;
(ii) limits involving trigonometric functions (e.g.,
[graphic]
(iii) nonexistent limits including, but not restricted to
[graphic]
(E) define and investigate continuity, including statements and applications of 
continuity theorems:
(i) intermediate value theorem; and
(ii) existence of a maximum and minimum for a continuous function on a closed 
interval.
(3) Concepts and skills associated with the derivative. The student shall be 
provided opportunities to:
(A) investigate definitions of the derivative of a function;
(B)  derive formulas for the derivatives from the definition of derivatives as 
the limit of a function;
(C) use theorems and properties of the derivative including the relationship 
between differentiability and continuity;
(D) find derivatives, including:
(i) elementary functions (e.g., trigonometric, logarithmic, exponential);
(ii) sums, products, and quotients;
(iii) composite functions (chain rule);
(iv) implicitly defined functions;
(v) inverse of a function (including Arcsin x and Arctan x);
(vi) higher order derivatives;
(vii) functions defined parametrically; and
(viii) logarithmic differentiation;
(E) investigate and apply Rolle's Theorem and the Mean Value Theorem;
(F) perform curve sketching, including:
(i) techniques for identifying intervals on which the curve is constant, 
increasing, or decreasing;
(ii)  critical numbers, relative absolute maximum or minimum points;
(iii) concavity;
inflection;
(v) Newton's approximation of zeros of a function;
(vi) the relationship of the first and second derivative to each of the previous 
concepts; and
(vii) calculator and computer approach to curve sketching;
(G) apply the derivative to:
(i) slope of a curve with tangent lines and normal lines;
(ii) extreme value problems including marginal analysis, etc.;
(iii) particle motion on a line or in a plane;
(iv) velocity, acceleration, and speed;
(v) average and instantaneous rates of change;
(vi)  differential approximation;
(vii) "SLICK" rule to evaluate limits of the form
[graphic]
(viii) related rates of change.
(4) Concepts and skills associated with the integral and techniques of 
integration. The student shall be provided opportunities to:
(A) find antiderivatives (indefinite integrals) of functions;
(B) apply antiderivatives to solve problems, including:
(i) finding distance and velocity given acceleration and initial conditions; and
(ii) solving differential equations with separable variables, including growth 
and decay problems from equations of the form y' = ky;
(C) investigate the definite integral, including:
(i) concept of the definite integral as an area;
(ii) approximations to the definite integral using rectangles;
(iii) definition of the definite integral as the limit of a sum;
(iv) Trapezoidal Rule;
(v) properties of the definite integral; and
(vi) the fundamental theorems of integral calculus;
(D) apply concepts of the definite integral to solve problems involving:
(i) the average value of a function;
(ii) area between curves;
(iii) volume of a solid of revolution (disc, washer, and shell method) about the 
x-axis, y-axis, or a line parallel to one of the axes; and
(iv) surface area of a solid of revolution;
(E) use techniques of integration, including:
(i) basic integration formulas;
(ii) integration by substitution (change of variables, identities);
(iii) integration by parts; and
(iv)  investigation of the previous techniques through calculator and computer-
oriented problems;
(F) integrate special functions, including:
(i) trigonometric functions;
(ii) logarithmic functions; and
(iii) exponential functions.
(5)  Applications of calculus to real-world problems in the fields of life 
science, business and economics, social science, physics, and engineering. The 
student shall be provided opportunities to:
(A) solve problems which can be solved without the use of a calculator or 
computer throughout the instruction of calculus; and
(B) solve problems which can most reasonably be solved using a scientific or 
graphing calculator or computer technology throughout the instruction of 
calculus.
sec.75.65. Health.
(a) Health education (1/2 unit). Essential elements described in this subsection 
for health education shall be superseded by the essential elements described in 
subsection (c) of this section effective September 1994. Health education shall 
include the following essential elements.
(1)-(3) (No change.)
(b) (No change.)
(c) Health education 1/2 unit). Essential elements for health education as 
described in this subsection shall be effective September 1994. Health education 
shall include the following essential elements.
(1) Concepts and skills that foster individual personal health and safety. The 
student shall be provided opportunities to:
(A) relate personal behavior to wellness by:
(i)  assessing personal wellness; and
(ii) identifying and evaluating personal behaviors on a health continuum ranging 
from life threatening to optimally health affirming;
(B) emphasize health and safety as a personal priority through:
(i) reviewing and applying positive life skills;
(ii) identifying and discussing the means to reduce risk factors that affect 
wellness; and
(iii) discussing the relevance of the grief process;
(C) identify and compare factors that influence mental and emotional well-being 
including causes, symptoms, prevention, and treatment of mental disorders;
(D) analyze the behaviors related to the use of drugs, including alcohol and 
tobacco by:
(i)  reviewing classifications of drugs and the laws and regulations for 
possession, use, delivery, and sale of alcohol, tobacco, and other drugs;
(ii) discussing the health risks and harmful effects of drug use and misuse of 
prescription medications;
(iii) examining the detrimental effects of operating equipment and vehicles 
while under the influence; and
(iv) examining the disease prevention concept and the addiction process and the 
importance of prevention, intervention, and treatment, including the methods of 
recovery;
(E) determine the benefits and the possible side effects of properly used over-
the-counter and prescription medications; and
(F) apply knowledge in food selection and predict the effects that contribute to 
wellness including:
(i) examining nutritional needs required at different stages of life;
(ii) determining factors that affect fluid intake and electrolyte balance;
(iii) analyzing the influence of health conditions, economics, environment, 
heredity, and culture on dietary selections;
(iv) evaluating positive and negative methods of weight control;
(v) identifying causes, symptoms, and treatment of eating disorders; and
(vi) relating personal patterns of food selection to current United States 
government dietary guidelines.
(2)  Health-related concepts and skills that involve interaction between 
individuals. The student shall be provided opportunities to:
(A)  develop and demonstrate effective expression of emotions through verbal and 
nonverbal communication skills;
(B) determine the causes, risk factors, symptoms, prevention, and treatment for 
communicable and non-communicable diseases by:
(i) studying prevalent diseases at various stages of life;
(ii) identifying and studying sexually transmitted diseases, including HIV 
disease; and
(iii) examining genetic and congenital diseases and disorders;
(C) demonstrate skills and procedures for emergency care including first-aid to 
persons not breathing, choking, or in cardiac distress/arrest;
(D) contrast responsible and irresponsible behavior in interpersonal 
relationships at various stages of maturity by:
(i) studying functional and dysfunctional families including conflicts and 
sibling relationships;
(ii) examining dating, marriage, pregnancy, parenthood, divorce, and/or 
remarriage;
(iii)  identifying and discussing physical, emotional, and sexual abuse of a 
child, spouse, parent, and/or the elderly; and
(iv) analyzing sexual assault including date rape.
(E) discriminate between responsible and irresponsible choices concerning sexual 
behavior by:
(i)  analyzing the benefits of delaying sexual activity and determining 
responsible choices in preventing school-age pregnancy;
(ii)  analyzing human sexuality and examining gender roles and stereotypes;
(iii) applying a decision-making process and refusal skills including the 
effects of peer pressure; and
(iv) reviewing the function of the human reproductive system;
(F) analyze the emotional, physical, and societal consequences of school-age 
sexual intercourse including legal responsibilities that pregnancy and 
parenthood may have on the attainment of personal, educational, and economical 
goals; and
(G) demonstrate consideration for the well-being of individuals whose culture, 
lifestyles, age, handicapping conditions, and/or chronic health problems cause 
them to have special needs and concerns.
(3) Health-related concepts and skills that affect the well-being of people 
collectively. The student shall be provided opportunities to:
(A) determine that an environment in ecological balance enhances well-being by:
(i) analyzing the homeostatic relationship between the population and 
environmental health that makes wellness possible;
(ii) investigating the health effects of common household products, their use 
and misuse, and suggestions for environmentally safer alternatives;
(iii) evaluating the effects of personal lifestyles on the environment, and 
predicting healthy benefits of change;
(iv)  relating the effects of malnutrition, hunger, increased population, 
pollution, and waste management to health issues and diseases; and
(v)  exploring the health-related and economic benefits of energy conservation 
and possible sources of energy for the future;
(B)  evaluate the mixed messages given by the media, including the advertising 
and entertainment industries related to legal and illegal products, personal and 
group behaviors, health service providers, or other current health issues;
(C) examine the roles of individuals, families, schools, communities, health 
agencies, organizations, and health professions in health promotion, disease 
prevention, and health care, including peer assistance programs, support groups, 
public health systems, volunteer efforts, and rehabilitation;
(D)  investigate the role of pharmacological and medical research in reducing 
the effects of illness and disease;
(E) examine current health issues, including laws and ethics, related to 
advanced medical technology including life-support systems, organ donations, and 
transplants; and
(F)  investigate health care finances.
sec.75.85. Industrial Technology Education.
(a) The elements in this subsection are common to all industrial technology 
education courses unless otherwise indicated and shall be included in each 
course at the appropriate level. They are described here to preclude repetition 
in each course. Every school offering industrial technology education shall 
provide courses which include the following essential elements.
(1) Leadership concepts and skills. The student shall be provided opportunities 
to:
(A) demonstrate skills, characteristics, and responsibilities of leaders and 
effective group members; and
(B) plan and conduct leadership activities using parliamentary procedures.
(2) Concepts and skills related to successful employment and/or postsecondary 
training. The student shall be provided opportunities to:
(A) identify employment opportunities and preparation requirements;
(B) (No change.)
(C) demonstrate productive work habits and attitudes; and
(D) describe the importance of taking pride in the quality of work performed.
(3) Concepts and skills associated with entrepreneurship. The student shall be 
provided opportunities to:
(A)  describe the risk and profit motive factor; and
(B) explain the role of small business in the free enterprise system.
(4) Concepts and skills related to the application of safety practices. The 
student shall be provided opportunities to:
(A)-(C) (No change.)
(5) Concepts and skills related to social/cultural impacts of technology. The 
student shall be provided opportunities to:
(A)-(B) (No change.)
(C)  project how selected technological developments may impact future cultures 
and societies; and
(D) (No change.)
(6) Concepts and skills related to the daily application of technology. The 
student shall be provided opportunities to:
(A)-(B) (No change.)
(C) service selected products and equipment of technology;
(D)-(F) (No change.)
(7)  Concepts and skills related to the tools, materials, and processes of 
technology. The student shall be provided opportunities to:
(A)  demonstrate the proper use of appropriate tools, machines, and equipment;
(B)-(D) (No change.)
(8) Concepts and skills related to the application of problem solving 
techniques. The student shall be provided opportunities to:
(A)-(C) (No change.)
(b) Communication systems (1/2-one unit). Communication systems is a laboratory-
oriented course that includes the common essential elements for industrial 
technology education, plus concepts and skills related to communication systems. 
The student shall be provided opportunities to:
(1)-(2) (No change.)
(3) use appropriate drafting standards to describe the shape and size of 
products and objects;
(4) use a computer-generated publishing system;
(5)  apply drafting standards to produce drawings in the fields of manufacturing 
and construction graphics;
(6)-(8) (No change.)
(9) explore telecommunication systems; and
(10) investigate the applications of communication systems in a space 
environment.
(c)-(d) (No change.)
(e) Communication graphics (1/2-one unit). Communication graphics is a 
laboratory-oriented course that includes the common essential elements for 
industrial technology education, plus concepts and skills related to 
communication graphics. The student shall be provided opportunities to:
(1) -(5) (No change.)
(6) use a computer generated publishing system;
(7)-(8) (No change.)
(9) investigate the applications of communication graphics in a space 
environment.
(f) Energy systems (1/2-one unit). Energy systems is a laboratory-oriented 
course that includes the common essential elements for industrial technology 
education, plus concepts and skills related to energy systems. The student shall 
be provided opportunities to:
(1) (No change.)
(2) construct and apply conventional and alternate sources of energy;
(3) (No change.)
(4) analyze and apply the principles of mechanical, electrical, and fluid power;
(5)-(7)  (No change.)
(8) apply methods of transporting people, materials, and information in all 
environments;
(9) explore the impact energy systems will have in the future; and
(10) investigate the application of energy in a space environment.
(g)-(k) (No change.)
(l)  Technology systems (1/2-one unit). Essential elements described in this 
subsection for technology systems shall be superseded by the essential elements 
described in subsection (q) of this section effective September 1993. Technology 
systems is a laboratory-oriented course that includes the common essential 
elements for industrial technology education, plus the following essential 
elements.
(1)-(3) (No change.)
(m)-(p) (No change.)
(q)  Technology systems (1/2-one unit). Essential elements described in this 
subsection for technology systems shall be effective in September 1993. 
Technology systems is a laboratory-oriented course that includes the common 
essential elements for industrial technology education, plus the following 
concepts and skills related to communication, energy, and production technology. 
The student shall be provided opportunities to:
(1) use sketching techniques to develop drawing format and graphic problem 
solving;
(2)  describe objects accurately through the principles of shape and size 
description;
(3) develop products using photographic materials and equipment;
(4) design and produce graphic arts materials;
(5)  explore the major electronic communication systems, including 
telecommunication;
(6) apply computer software to design and make drawings;
(7) explore the conversion, control, storage, and transmission of various forms 
of energy;
(8) demonstrate the use of conventional and alternate sources of energy;
(9) apply and explain the principles of internal/external combustion engines;
(10) demonstrate the principles of mechanical, electrical, and fluid power;
(11) explore the basic principles of electrical systems;
(12) investigate the methods of transporting people, material, and information;
(13) apply production processes of casting, forming, separating, conditioning, 
assembling, and finishing to selected materials;
(14) use the manufacturing management components, such as planning, organizing, 
directing, and controlling personnel, to design, engineer, produce, and market a 
product;
(15)  investigate the construction subsystems of design, management, and 
building;
(16) apply automated systems in the production of products, including robotics 
and computer numerical control (CMC);
(17) organize a construction enterprise to design and build a simulated 
structure;
(18) identify the criteria for selecting materials used in the various types of 
construction;
(19) explore applications of communication, energy, and production technology in 
a space environment.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on November 25, 1991.
TRD-9115377
Criss Cloudt
Director, Planning Coordination
Texas Education Agency
Effective date: December 27, 1991
Proposal publication date: October 11, 1991
For further information, please call: (512) 463-9701
       
TITLE 25. HEALTH SERVICES
Part I. Texas Department of Health
Chapter 325. Solid Waste Management
Subchapter A. General Information
The Texas Department of Health (department) adopts amendments to existing 
sec.325.5 and new sec.sec.325.1101-325.1109. Sections 325.5, 325.1102, and 
325.1105 are adopted with changes to the proposed text as published in the 
September 10, 1991 issue of the Texas Register (16 TexReg 4927). Sections 
325.1101, 325.1103-325.1104, and 325.1106-325.1109 are adopted without changes 
and will not be republished.
Section 325.5 covers definitions and new sec.sec.325.1101-325.1109 cover 
management of lead-acid batteries and the amendment and new sections implement 
Senate Bill 1340, 72nd Legislature, 1991, which contains special new 
requirements with respect to the management of lead-acid batteries. The 
amendment adds definitions of various words and terms which are contained in the 
new sections, while the new sections contain requirements for persons who 
generate, handle, recycle, and/or dispose of lead-acid batteries.
The department did not receive any comments on the proposal either at the public 
hearing or during the comment period; however, the department made a few minor 
editorial changes to sec. sec.325.5, 325.1102, and 325.1105 for purposes of 
clarification.
25 TAC sec.325.5
The amendment and new sections are adopted under the Health and Safety Code, 
sec.361.024, which provides the Texas Board of Health with the authority to 
adopt rules to manage and control municipal solid waste; sec.12.011, which 
provides the Texas Board of Health authority to adopt rules for the performance 
of every duty imposed by law on the Texas Board of Health, the Texas Department 
of Health, and the Commissioner of Health; and Senate Bill 1340, 72nd 
Legislature, 1991, concerning the management of lead-acid batteries.
sec.325.5. Definitions.  The following words, terms, and abbreviations when used 
in this subchapter, shall have the following meanings, unless the context 
clearly indicates otherwise. Other definitions, pertinent to specific sections 
are contained within the appropriate sections.
   Acid-A substance containing hydrogen which will release hydrogen (hydronium) 
ions when dissolved in water. Acids usually have a sour taste and will cause 
blue litmus dye to turn red.
   Battery-An electrochemical device that generates electric current by 
converting chemical energy to electrical energy. Its essential components are 
positive and negative electrodes made of more or less electrically conductive 
materials, a separate medium, and an electrolyte. There are four major types:
(A) primary batteries (dry cells);
(B)  storage or secondary batteries;
(C) nuclear and solar cells or energy converters; and
(D) fuel cells.
   Battery acid (also know as electrolyte acid)-A solution of not more than 47% 
sulfuric acid in water, suitable for use in storage batteries, which is water 
white, odorless, and practically free from iron.
   Battery retailer -A person or business location which sells lead-acid 
batteries to the general public, without restrictions to limit purchases to 
institutional or industrial clients only.
   Battery wholesaler -A person or business location which sells lead-acid 
batteries directly to battery retailers, to government entities by contract 
sale, or to large volume users either directly or by contract sale.
   EPA-United States Environmental Protection Agency.
   Lead-A heavy malleable, ductile, soft, gray, solid metallic element that is 
soluble in dilute nitric acid, insoluble in water but dissolves slowly in water 
containing a weak acid, resists corrosion, and is impenetrable to radiation. Its 
atomic number is 82, its atomic weight is 207.2, and its chemical symbol is Pb.
   Lead-acid battery -A secondary or storage battery that uses lead as the 
electrode and dilute sulfuric acid as the electrolyte and is used to generate 
electrical current.
   Storage battery -A secondary battery, so called because the conversion from 
chemical to electrical energy is reversible and the battery is thus 
rechargeable. Secondary or storage batteries contain an electrode made of sponge 
lead and lead dioxide, nickel-iron, nickel-cadmium, silver-zinc, or silver-
cadmium. The electrolyte used is sulfuric acid. Other types of storage batteries 
contain lithium, sodium-liquid sulfur or chlorine-zinc using titanium 
electrodes.
   Storage cell-An electrolytic cell for generating electric energy, in which 
the cell, after being discharged, may be restored to a charged condition by 
sending a current through the cell in a direction opposite to that of the 
discharging current.
   Sulfuric acid-A toxic, strongly corrosive, dense, oily liquid that is 
colorless to dark brown, depending on purity, and that is miscible with water. 
It is reactive, will dissolve most metals, and will oxidize, dehydrate, or 
sulfonate most organic compounds when in its concentrated form. Its chemical 
symbol is H2SO4.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115405
Robert A. MacLean, M.D.
Deputy Commissioner
Texas Department of Health
Effective date: January 1, 1992
Proposal publication date: September 10, 1991
For further information, please call: (512) 458-7271
       
Subchapter Z. Waste Minimization and Recyclable Materials
Management of Lead-Acid Batteries
25 TAC sec.sec.325.1101-325.1109
The new sections are adopted under the Health and Safety Code (code), 
sec.361.427, which provides the department with the authority to adopt rules 
concerning recycling; sec.sec.361.011 and 361.024 which establish the 
department's jurisdiction over municipal solid waste management and provide the 
Board of Health (board) with the authority to adopt rules to manage and control 
municipal solid waste; and sec.12.001 which provides the board with the 
authority to adopt rules for the performance of every duty imposed by law on the 
board, the department, and the Commissioner of Health. The amendments and new 
section will affect sec. sec.361.421-361.431 specifically and Chapter 361 
generally of the code.
sec.325.1102. Applicability.
(a) The sections in this subchapter are applicable to persons who are involved 
in the sale, transportation, collection for recycling, and disposal of lead-acid 
type storage or secondary batteries regulated by the Texas Department of Health 
pursuant to the Texas Health and Safety Code, sec.sec.361.451-361.470.
(b) While these sections are only applicable specifically to lead-acid type 
storage or secondary batteries, any other type of multi-cell storage or 
secondary battery, primary battery, nuclear cell, solar cell, or fuel cell 
should be managed in a similar manner.
sec.325.1105. Wholesale Sale of Lead-acid Batteries.  A battery wholesaler in 
Texas shall:
(1) accept from the customer, if offered by the customer, at the point of 
transfer, used lead-acid batteries of the type and in a quantity equal to the 
number of new lead-acid batteries sold; or
(2) if accepting batteries in transfer from a battery retailer or retail 
facility, remove all used lead-acid batteries from the retail point of 
collection within 90 days after acceptance; and
(3) shall post written notice, containing the universal recycling symbol, 
concerning the sale and disposal of lead-acid batteries. The notice shall 
conform to the requirements of  sec.325.1106 of this title (relating to Notice 
Requirements) and shall be provided by the Texas Department of Health.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115406
Robert A. MacLean, M.D.
Deputy Commissioner
Texas Department of Health
Effective date: January 1, 1992
Proposal publication date: September 10, 1991
For further information, please call: (512) 458-7271
       
TITLE 28. INSURANCE
Part I. Texas Department of Insurance
Chapter 7. Corporate and Financial Regulations
Subchapter A. General Regulation of Surplus Lines Insurance
28 TAC sec.7.82
The State Board of Insurance adopts new sec.7.82, without changes to the 
proposed text as published in the October 1, 1991, issue of the Texas Register 
(16 TexReg 5384).
Section 7.82 concerns forms and instructions for the preparation and filing of 
tax returns by surplus lines insurance agents for the 1991 calendar year. This 
new section is necessary to provide forms and instructions which will facilities 
compliance with statutory requirements for reporting and payment of taxes to the 
Texas Department of Insurance.
New sec.7.82 adopts by reference forms and instructions for the preparation of 
tax returns by surplus lines agents. Proposal of this section includes proposal 
for adoption by reference of forms and instructions.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Insurance Code, Article 1.04 and 1.14-2. 
Article 1.04 authorize the State Board of Insurance to determine rules in 
accordance with the laws of this state. Article 1.14-2, sec.12, requires surplus 
lines agents to collect, report, and pay gross premium tax on premium collected 
by those agents on policies of insurance.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 6, 1991.
TRD-9115386
Linda von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 27, 1991
Proposal publication date: October 1, 1991
For further information, please call: (512) 463-6328
       
Subchapter F. Reinsurance
Undesignated Head: Credit for Reinsurance
28 TAC sec.7.615
The Texas Department of Insurance adopts new sec.7.615, concerning the 
accounting of reinsurance agreements by property and casualty insurers, with 
changes to the proposed text as published in the October 1, 1991, issue of the 
Texas Register (16 TexReg 5384).
The section concerns the accounting of reinsurance agreements by property and 
casualty insurers. This adoption includes several changes to the proposed text 
for the reasons explained in the following sentences. This adoption includes a 
change to subsection (a)(2) to specify that the section applies to all 
reinsurance agreements entered into by property and casualty insurers. A change 
was made to subsection (c) by deleting paragraphs (1) Anniversary, (2) Assuming 
insurer (Reinsurer), (3) Ceding insurer, (6) Insurer, and (8) Reinsurance, since 
these definitions are repetitive of some of the definitions in sec.7.602 of this 
subchapter, relating to credit for reinsurance, and renumbering the definitions 
for Commutation, Insurance risk, and Obligations. A change was made to 
subsection (d)(1) by deleting the first sentence which stated, "A reinsurance 
agreement shall disclose the reinsurer's maximum liability for assumed 
obligations under the agreement, if such liability is capped or limited." New 
language was added to show that reinsurance agreements often cap or limit the 
reinsurer's maximum liability. The first and last sentences of subsection (d)(2) 
were deleted for clarification and to not impose burdens on the ceding insurer 
which it may not be able to meet. A change was made to subsection (d)(3) by 
inserting the phrase "the premiums are" for clarification into the following 
phrases: "settlement of premiums as the premiums are earned" and "automatic 
recapture of premiums as the premiums are earned" and changing the word "by" to 
"to" as suggested by a commenter. A change was made to subsection (d)(4) to 
clarify its application to unearned premiums. A change was made to subsection 
(d) (6) to clarify which reinsurance recoverables should be reflected as a 
liability and which conditions must be present before an application for waiver 
of the subsection may occur. A change was made to subsection (d)(7) by adding 
new subparagraphs (A) and (B) to indicate the contract provisions which may be 
found objectionable, subparagraph (A), and those contract provisions which will 
result in denial of credit for reinsurance, subparagraph (B). The previous 
subparagraphs of subsection (d)(7) were appropriately renumbered. A change was 
made to subsection (d)(7)(C)(i) by renumbering the clause to subsection 
(d)(7)(A) (ii)II) to clarify the application of the provision regarding 
adjustments for actual experience. A change was made to subsection (d)(7)(C)(ii) 
by renumbering the clause to subsection (d)(7)(A)(ii)(II) to replace the word 
"negative" with "adverse" and the phrase "experience refunds" with the phrase 
"commission adjustments" as the latter are more technically correct. A change 
was made to subsection (d)(7)(H) by renumbering to subsection (d)(7)(B)(iv) to 
delete unnecessary language and to delete the term "in-force" as suggested by a 
commenter. A change was made to subsection (d)(7)(I) and it was renumbered to 
subsection (d)(7)(A)(v) to reduce the number of days of written notice and to 
clarify that the contract can be automatically terminated upon termination of 
the underlying policy. Subsection (d)(7)(M) was deleted to avoid repetition as 
to concern was addressed by another subparagraph. A change was made to 
subsection (e) to allow the use of letters of intent to indicate the intent to 
enter into a reinsurance agreement and explaining what a letter of intent may 
consist of. Changes were made to subsections (f) and (g) to change various dates 
used in the rule including the effective date of the rule.
The section is necessary to regulate the accounting of reinsurance agreements 
and other agreements represented to be reinsurance when such latter 
arrangements, despite their legal form, are in substance and effect financing 
arrangements, which have the principal purpose of producing increased surplus 
for the ceding insurer, typically on a temporary basis, but which provide little 
or no indemnification of insurance risks by the reinsurer. The section prevents 
a ceding insurer from improperly reducing liabilities or establishing assets, 
resulting in distorted financial statements, by using a financing arrangement 
represented to be a reinsurance agreement. The section defines terms commonly 
used in reinsurance accounting and financing arrangements. The section 
establishes certain general provisions which are acceptable in any reinsurance 
agreement. The section also sets forth those contract provisions that are not 
permitted and will result in disallowance of credit for reinsurance in any 
agreement.
A commenter expressed concern over the public benefit/cost note and felt that 
some reinsurers may find certain provisions in the section to be objectionable 
and withdraw from providing reinsurance, thus resulting in the reduction in 
reinsurance coverage available and possibly resulting in the increase in the 
cost of insurance due to a reduced reinsurance market. The commenter was not 
specific about which provisions were so objectionable that a reinsurer would not 
provide reinsurance. The department does not feel that the section places an 
unreasonable burden on insurers and does not feel that it would cause reinsurers 
to withdraw from the market. A similar provision has been applicable to life 
insurers as sec.7.27 of this title for several years and withdrawal of insurers 
from the market as a result of that rule has not occurred. Commenters noted that 
the rule appears to be based on the NAIC model regulation on life reinsurance 
agreements and expressed concern that applying the rule to property and casualty 
insurers raises numerous issues which may have not been fully explored. There 
are several provisions which the commenters felt did not apply to property and 
casualty insurers and were overly broad and would prevent the allowance of 
credit for reinsurance even though an underwriting risk had been transferred. 
One commenter suggested that the rule as proposed regulates nonfinancial 
reinsurance agreements which have as their legitimate purpose the 
indemnification of insurance risks by the reinsurer and thus is unfair. The 
commenter contends that the rule is broad and misleading since in practical 
effect it regulates all reinsurance agreements, not just financial reinsurance 
agreements as stated in the purpose of the rule. This commenter does not believe 
that the department has the authority to regulate all reinsurance contracts. The 
department responds that this rule is not an expansion of the life rule to 
property and casualty insurers but rather certain portions of the existing rule 
applicable to life insurers, sec.7.27 of this title, were utilized since the 
provisions are also applicable to property and casualty insurers. The department 
believes that financing arrangements touted as reinsurance should be regulated 
whether the insurer is a life insurer or a property and casualty insurer. It is 
the department's position that many reinsurance arrangements other than so 
called "financial reinsurance" arrangements have financial elements and should 
be appropriately regulated. The department was granted additional authority in 
House Bill 2 to regulate all reinsurance agreements entered into by property and 
casualty insurers with the adoption of new subsection (n) to Article 5.75- 1.
Commenters suggested that subsection (b) be limited to insurers domiciled in 
Texas and not apply to all insurers authorized to do business in Texas. The 
commenters felt that applying the rule extraterritorially could result in 
conflicts between Texas and an insurer's domiciliary state. A commenter does not 
believe that the substantially similar exception, in the rule, will be utilized 
much since this rule is unique to the property and casualty area. One commenter 
suggested that additional inquiries be addressed to the company or require 
additional certification by the company. The department responds that the Texas 
Insurance Code, Article 5.75-1,and the rules adopted pursuant thereto apply to 
all insurers authorized in Texas, not just Texas domiciled insurers. Also, the 
department wants to ensure that there is a level playing field for all insurers. 
If this rule is unique in this area, then the agency is not certain that there 
will be a problem with conflict with regulations of other states.
One commenter questioned the need for definitions in the rule, subsection (c), 
since the terms have accepted meanings and/or are defined in insurance texts or 
similar publications. The commenter took exception to the definition of 
"Assuming insurer (Reinsurer)," subsection (c)(2), and noted that it should be 
revised to show that the assuming insurer's obligation is to indemnify, and that 
'the reinsurer's liability is contingent on the ceding company's incurring the 
liability and paying the loss.' Commenters objected to the definition of 
"reinsurance," subsection (c)(8), as being overly broad, requiring the 
reinsurance agreement to be "written," and inclusion of the reference 
"consideration commensurate with the risk transferred," and requested deletion 
of this phrase. The department disagrees and responds that the definitions 
complained of are existing definitions previously adopted by the board in sec.7. 
602 of this title and are currently used by the department in the regulation of 
credit for reinsurance for all insurers. The department is, however, deleting 
from this subsection the following definitions since they are consistent with 
the existing definitions in sec.7.602 of this title: (1) Anniversary, (2) 
Assuming insurer (Reinsurer), (3) Ceding insurer, (6) Insurer, and (8) 
Reinsurance. The remaining three definitions, Commutation, Insurance risk, and 
Obligations will be renumbered.
One commenter noted that subsection (d)(1) requires disclosure of the 
reinsurer's maximum liability and that few reinsurance contracts provide for 
unlimited liability, which if no limit were indicated would benefit the 
reinsured. The agency agrees and clarifies the paragraph by deleting the first 
sentence and substituting the following: "Reinsurance agreements often cap or 
limit the reinsurer's maximum liability for assumed obligations under the 
contract."
A commenter felt that subsection (d)(2) by requiring that reinsurance agreements 
be in a form which reflects the intent of the parties and not contain language 
which renders the parties intent unclear is too vague a standard for reinsurance 
agreements and another commenter expressed concern over the ability of the 
ceding insurer to obtain the assuming insurer's verification if the insurers are 
in arbitration, etc. The agency agrees and deletes the first and last sentences 
from subsection (d)(2).
A commenter suggested that two phrases in subsection (d)(3), "settlement of 
premiums as earned" and "automatic recapture of premiums as earned" be defined 
or the problem and solution desired be explained since the terminology is 
unclear. Another commenter requested clarification. The department agrees and 
clarifies subsection (d)(3) by inserting the phrase "the premiums are" into each 
of the phrases commented upon as follows: "settlement of premiums as the 
premiums are earned" and "automatic recapture of premiums as the premiums are 
earned." One commenter also suggested that the phrase "subsequent retrocession 
by the original insurer" be changed to "subsequent retrocession to the original 
insurer," as well as questioning the use of the term "retrocession" in this 
phrase. The agency agrees, in part, with the comment and has made the change; 
however, the agency feels that the use of the term "retrocession" is 
appropriate.
Commenters felt that subsection (d)(4) as proposed needs more clarification or 
is incomprehensible as to its objectives and procedures, in that it fails to 
specify acceptable computation methods. The department agrees that subsection 
(d) (4) is vague and has clarified the provision to read as follows: "Credit for 
unearned premium ceded under reinsurance agreements written on an excess or 
nonproportional basis shall not be allowed for minimum and fully earned 
reinsurance premiums."
A commenter suggested that the department defer subsection (d)(5) to the NAIC 
and an anticipated amendment to the Accounting Practices and Procedures Manual 
for Fire and Casualty Insurance Companies which the commenter expects to be 
adopted in December by NAIC. The department responds that subsection (d)(5) 
requires for credit for reinsurance purposes that reinsurance agreements contain 
both components of insurance risk, underwriting and timing. The department 
disagrees with the commenter and believes that this provision provides the 
proper tool to assure that a transfer of insurance risk occurs. Texas is on the 
NAIC Reinsurance Task Force and reports that the NAIC is adamant that insurance 
risk contain both underwriting risk and timing risk.
Commenters expressed concern over subsection (d)(6) claiming that Texas is 
requiring different accounting for reinsurance recoverables which are 90 days 
overdue than that required by the NAIC. The agency agrees and rather than 
nonadmitting the asset the establishment of a liability shall be required. One 
commenter suggested that amounts in dispute be included. The agency agrees in 
part and will permit applications for waiver of this subsection based on certain 
conditions. A commenter questioned the applicability to authorized and secured 
unauthorized balances and requested that the department pursue a change through 
the NAIC Blanks Task Force. The agency responds that regardless if an account is 
collateralized, if it is over 90 days old, then it is not being settled in 
accordance with the agency's regulations and therefore its collectability is 
questionable. Texas is urging the NAIC to strengthen its requirements.
Commenters felt that some of the conditions which deprive a company of surplus 
and the denial of credit as stated in subsection (d)(7) require a precise 
definition since this is not a common phrase in the property and casualty area 
and could result in confusion. A precise definition can not be provided because 
of the numerous situations where there can be deprivation of surplus. The 
provisions in subsection (d)(7) address the situation where a company enters 
into a reinsurance arrangement today and books an amount to surplus as if the 
surplus were permanent or would have a lasting effect only to later be returned 
to the reinsurer by its electing to invoke an onerous cancellation or other 
provision. The commenter believes that some contracts which contain aggregate 
retentions could be considered in violation of the rule and credit denied. The 
agency changed subsection (d)(7) based on written and oral comments received to 
clarify the paragraph. The agency has added new subparagraphs (A) and (B)and has 
provided guidance to examiners in subparagraph (A) and set forth prohibited 
provisions in subparagraph (B).
A commenter suggested that subsection (d)(7)(A) should be eliminated since 
actuarial interpretations or standards for property and casualty insurers have 
not been adopted in Texas and if adopted should go through the administrative 
rule making process. The agency is merely advising insurers what standards will 
be applied and also acknowledges that proper rule making procedure will be 
followed. Subsection (d)(7)(A) was revised and is now part of subsection (d)(7).
A commenter suggested changing subsection (d)(7)(B), as he felt the existing 
language confusing, to read as follows: "the reserve credit taken by the ceding 
insurer is greater than the reserve previously established by the ceding company 
to support the policy obligations." The department disagrees and feels that 
existing language is clear. Subsection (d)(7)(B) is now subsection (d)(7)(A)(i).
A commenter claimed unfamiliarity with the terms "negative experience" and 
"experience refunds" in subsection (d)(7)(C) and suggested that the terms be 
precisely defined. The department disagrees as regards the terms "experience" as 
it is routinely used in property and casualty insurance; however, the word 
"negative" was replaced with "adverse" in the phrase "negative experience" and 
the phrase "experience refunds" has been changed to "commission adjustments" as 
this is more technically correct. Commenters suggested language changes in 
subsection (d)(7)(C) and clauses (i) and (ii), with which the agency agrees and 
the requested changes have been made. Subsection (d)(7)(C) is now subsection (d) 
(7)(A)(ii) and subsection (d)(7)(A)(ii) and subsection (d)(7)(C)(i)-(ii) is now 
subsection (d)(7)(A)(ii)(I)-(II).
A commenter contended that subsection (d) (7)(D) is vague, unduly restrictive 
and suggested that the department use the NAIC standards related to loss 
portfolio transactions. The agency disagrees since it is relying on NAIC 
pronouncements on loss portfolio transactions. The agency is addressing, in 
particular, so called "guaranteed profit" contracts where there is essentially a 
no loss situation for the reinsurer. The agency's position is consistent with 
the position of the American Institute of Certified Public Accountants (AICPA), 
as evidenced by an exposure draft. Subsection (d)(7) (D) is now subsection 
(d)(7)(A)(i).
A commenter suggested that subsection (d)(7)(F) either be limited to insolvency 
of the ceding insurer or specifically identify the other triggering events which 
could activate this provision. The agency disagrees since it would be impossible 
to identify all the various contractual provisions which a reinsurer could put 
into a contract to absolve it of liability. A commenter suggested that the 
exception for termination for nonpayment of reinsurance premiums in subsection 
(d)(7)(F) also be included in subsection (d)(7)(G)-(I). The agency responds that 
the comnmenter's concerns were adequately addressed in former subsection 
(d)(7)(F) which is now subsection (d)(7)(B)(ii) and part of the prohibited 
provisions.
One commenter felt that subsection (d)(7)(H) is unclear and confusing and 
contended the terms "subsequent" and "in-force" are confusing and appear 
unnecessary. The department disagrees regarding the term "subsequent" and 
believes that commutation needs to be a separate, negotiated contract. The 
agency agrees with the comment on the term "in-force" and has deleted the term. 
The commenter questioned whether the provision would prohibit cancellation on a 
cut-off basis. The agency responds that the provision would require the 
reinsurer to indemnify all obligations reinsured prior to and up to the date of 
termination, which may be in excess of the unearned premium returned. Subsection 
(d)(7)(H) is now subsection (d)(7)(B)(iv).
Commenters expressed concern over subsection (d)(7)(I) which disallows 
reinsurance credit if the contract contains language which permits the agreement 
to be terminated automatically or at the sole option of the reinsurer on less 
that 60 days prior notice. The commenters do not believe that the length of the 
termination notice should be one of the factors that the department uses to 
distinguish between financial and nonfinancial reinsurance agreements. The 
commenters contend that many legitimate, reinsurance agreements are terminable 
with less than 60 days' notice and this provision of the rule is too broad. The 
commenter suggested either deleting subsection (d)(7)(I) or change the time 
period from "less than 60 days" to "less than 30 days." The agency believes that 
the length of termination notice often is a distinguishing factor in financial 
arrangements. The agency agrees with the suggestion of changing the period to 30 
days rather than 60 days. Another commenter suggested that automatic termination 
should be allowed for fraud, breach of contract, or similar actions or upon 
termination of the underlying policy. The agency agrees that automatic 
termination should occur upon termination of the underlying policy but does not 
agree that automatic termination should occur for fraud or breach of contract 
due to the proof aspect and believes the 30 day notice of termination provision 
addresses this problem. Subsection (d)(7)(I) is now subsection (d)(7)(A)(v).
Commenters expressed concern over subsection (d)(7)(L) requiring that the 
consideration be reasonable in relation to the risk transferred and the 
difficulty in making this determination. The agency understands the commenters' 
concern with the difficulty in making the determination but asserts that some 
reasonable relation between consideration and the risk transferred must exist. 
In addition, the provision is consistent with the agency's definition of 
reinsurance, as evidenced in sec.7.602. Subsection (d)(7)(L) is now subsection 
(d) (7)(A)(iv).
Commenters contended that subsection (d)(7)(M) is an unsophisticated perspective 
of pricing reinsurance or incomprehensible to property and casualty reinsurance 
and should be deleted. The agency deleted the subparagraph to avoid repetition 
as the concern was covered in another subparagraph.
Commenters felt that the requirements in subsection (e) are unrealistic and 
impractical. The department agrees and have incorporated changes which allow 
letters of intent duly executed by both parties, however, the department reminds 
the commenters that the existing credit for reinsurance rules, specifically 
sec.7. 602 of this title, require a written contract.
A Commenter suggested that subsection (f) is unclear and exceeds the stated 
purpose of the rule as well as exceeds the authority of the board to apply the 
rule as proposed to previously approved existing rules. The commenter suggests 
changing the reference in subsection (f) from "subsection (d)" to "subsection 
(d) (7)(A)-(M)." The agency disagrees and the provision does not exceed the 
authority of the board as additional authority was granted in House Bill 2 with 
the adoption of new subsection (n) to Article 5.75-1. A commenter felt that 
subsection (f)(2) is unnecessary and disruptive and one commenter felt that 
subsection (f) raises possible constitutional questions because of its 
application to existing contracts and penalizes companies by applying to 
agreements in effect before adoption of the rule. The agency disagrees. It is 
willing to give an insurer sufficient time to renegotiate a new contract but 
does not want to grandfather any contracts. Several dates which appear in 
subsection (f) were changed to address the concerns that subsection (f) would be 
disruptive or pose any constitutional questions. A commenter suggested that 
subsection (f)(5) is unnecessary and burdensome to the department. The agency 
disagrees and believes that it needs to be notified regarding all noncomplying 
contracts as this is part of its regulatory function.
Three commenters were generally in favor of the proposed section; however, 
objections were made to certain specific provisions by Progressive County Mutual 
Insurance Company regarding the possible inadvertent regulation of non-financial 
reinsurance agreements and specifically subsection (d)(7)(I) and subsection (f), 
Texas Farmers Insurance Company and Underwriters at Lloyd's, London, objected to 
subsection (d)(6). The Reinsurance Association of America and the National 
Association of Independent Insurers are generally opposed to the proposed 
section.
The new section is adopted under the Insurance Code, Articles 1.32 and 5.75-1. 
Article 1.32 authorizes the Texas Department of Insurance to promulgate rules 
and regulations which evaluate the financial condition of insurers. Article 5. 
75-1 authorizes rules relating to accounting and financial statement 
requirements and the treatment of reinsurance agreements between insurers.
sec.7.615. Regulation of Accounting for Reinsurance Agreements by Property and 
Casualty Insurers.
(a) Purpose.
(1) The Texas Department of Insurance recognizes that licensed insurers 
routinely enter into reinsurance agreements that yield legitimate relief to the 
ceding insurer from strain to surplus.
(2) The Texas Department of Insurance, however, has become aware that some 
insurers, in the capacity of ceding insurer, have at times entered into 
reinsurance agreements primarily as financing arrangements which have the 
principal purpose of producing increased surplus for the ceding insurer, 
typically on a temporary basis, but which provide little or no indemnification 
of insurance risks by the reinsurer. The purpose of this section is to provide 
for the regulation of the accounting for reinsurance agreements and agreements 
represented to be, or styled as, reinsurance, when such latter arrangements, 
despite their legal form, are in substance and effect financing arrangements. 
The terms of such latter agreements do not comply in essence with the 
requirements of subsection (d) of this section and violate one or more of the 
following:
(A) the Insurance Code, Articles 1.10, 1.32, 6.04, 6.05, 6.11, 6.12, 8.07, 
15.13, 15.15, 16.18, 16.20, 17.11, 17.25, 18.08, 18.12, 19.06, 19.08, 20.02, and 
21.21 relating to the financial condition of insurers, thus resulting in 
distorted financial statements which do not properly reflect the financial 
condition of the ceding insurers;
(B) the Insurance Code, Article 5.75-1, relating to reinsurance reserve credits, 
thus, resulting in a ceding insurer improperly reducing liabilities or 
establishing assets for reinsurance ceded; and
(C) the Insurance Code, Articles 1.32 and 21.28-A, relating to creating a 
situation that may be hazardous to policyholders of this state.
(b) Scope. This section applies to all insurers writing all forms of insurance 
regulated by the Insurance Code, Chapter 5, including, but not limited to, 
property and casualty insurance, fire insurance, auto insurance, fidelity, 
guaranty and surety bonds, and workers' compensation insurance in this state, 
including all insurers authorized to do the business of insurance in this state 
under the Insurance Code, Chapters 2, 5, 6, 8, 15-19, and 21. The provisions of 
this section shall not apply to ceding insurers domiciled in another state that 
regulates the accounting for reinsurance agreements by property and casualty 
insurers under law, rule, or bulletin substantially similar in substance and 
effect to Texas law and rules. To pursue this exception the ceding insurer shall 
provide, upon request, to the commissioner of insurance evidence of similarity 
in the form of statutes, regulations, and interpretation of the standards 
utilized by the state of domicile. The provisions of this section are 
supplementary to and cumulative of existing statutes and rules of the Texas 
Department of Insurance. In the case of an ambiguity or contradiction between 
any of the provisions in this section and any statute, the provisions of the 
statute controls.
(c)  Definitions. The following words and terms, when used in this section, 
shall have the following meanings, unless the context clearly indicates 
otherwise.
(1) Commutation-A transaction which results in the recapture by the ceding 
insurer of risks previously reinsured with an assuming insurer which provides 
payment and complete discharge of all present and future obligations between the 
parties arising from the reinsurance agreement.
(2) Insurance risk-Uncertainty as to the ultimate amount of any claim payments 
(underwriting risk) and the timing of those payments (timing risk).
(3) Obligations-As pertains to reinsurance agreements:
(A)  losses and loss adjustment expenses paid by the ceding insurer, but not 
recovered from the assuming insurer;
(B) reserves for losses reported and outstanding;
(C) reserves for losses incurred but not reported;
(D) reserves for loss adjustment expenses related to losses reported and 
outstanding and to losses incurred but not reported;
(E) reserves for unearned premiums; and
(F) any other balances due under the reinsurance agreement.
(d) Accounting and other requirements.
(1)  Reinsurance agreements often cap or limit the reinsurer's maximum liability 
for assumed obligations under the contract. The credit taken by an insurer for 
reinsurance ceded to an assuming insurer under an agreement shall be exclusive 
of all deductibles and retentions and may not exceed the reinsurer's liability 
for obligations as capped or limited actually transferred under the agreement.
(2) For purposes of determining whether credit for reinsurance will be allowed 
under an agreement, the ceding insurer has the responsibility to satisfactorily 
explain all provisions of an agreement to the Texas Department of Insurance. The 
Texas Department of Insurance may require such explanations to be in writing and 
include both cash flow projections and mathematical models using various 
interest rate and other assumptions.
(3) Credit for unearned premiums ceded shall not be allowed a ceding insurer 
under reinsurance agreements written on a pro-rata or proportional basis which 
provide for the settlement of premiums as the premiums are earned or for the 
automatic recapture of premiums as the premiums are earned. Credit for unearned 
premiums ceded shall not be allowed a ceding insurer under a series of 
reinsurance agreements written on a pro-rata or proportional basis which provide 
for initial settlement of premiums as the premiums are written and the 
subsequent retrocession to the original insurer of premiums as the premiums are 
earned.
(4) Credit for unearned premium ceded under reinsurance agreements written on an 
excess or nonproportional basis shall not be allowed for minimum and fully 
earned reinsurance premiums.
(5) Reinsurance agreements must contain both components of insurance risk 
(underwriting and timing) for credit for reinsurance to be allowed in financial 
statements filed with the Texas Department of Insurance.
(6) A ceding insurer shall reflect reinsurance recoverable on paid losses and 
loss adjustment expenses which is more than 90 days overdue as a liability in 
financial statements filed with the Texas Department of Insurance, provided that 
the Texas Department of Insurance may waive the application of this subsection 
if the department determines that good faith efforts are being made by both 
parties to resolve the claim(s) or disputes arising therefrom as soon as 
practicable after consideration by the department of the following factors:
(A) the nature of the business giving rise to the losses;
(B) the number of years of coverage involved in the claim(s) ;
(C) the number of assuming insurers involved in the claim(s);
(D) the payment history between the ceding insurer and assuming insurer(s);
(E) the level of communication with respect to the claim(s);
(F)  any other evidence of efforts to resolve the claim(s) as expeditiously as 
possible; and
(G) any other factor deemed relevant by the department.
(7) In addition to the requirements of paragraphs (1)-(6)
(6) of this subsection, no insurer subject to this section shall, for 
reinsurance ceded, reduce any liability or establish any asset in any financial 
statement filed with the Texas Department of Insurance if the contract or 
agreement is not in compliance with the Insurance Code, or with the rules or 
regulations, including actuarial interpretations or standards, adopted by the 
State Board of Insurance.
(A) The following descriptions of treaty provisions are provided as guidance to 
examiners to determine if reserve credits are proper and in no way limit the 
department's authority:
(i) the reserve credit taken by the ceding insurer is greater than the 
underlying reserve of the ceding insurer supporting the policy obligations 
transferred under the contract;
(ii) the ceding insurer is required to reimburse the reinsurer for adverse 
experience under the contract in an amount greater than 5.0% of the net written 
premium to any extent, except that.
(I) any provision for subsequent adjustment on the basis of actual experience in 
excess of 5.0% of net written premium is allowable so long as a reserve is 
established at the inception of the agreement equal to the full amount of the 
potential adjustment in excess of 5.0% and that reserve is maintained until such 
time as the subsequent adjustments are due and payable, pursuant to the terms of 
the agreement.
(II) commission adjustments which provide that adverse experience may be carried 
forward and offset against future commission adjustments will not be considered 
a reimbursement to the reinsurer for adverse experience;
(iii) the ceding insurer in time, terminate or automatically recapture all or 
part of the reinsurance ceded in a manner which deprives the ceding insurer of 
surplus;
(iv) the consideration to be paid by the ceding insurer is not reasonable in 
relation to the amount of insurance risk transferred under the agreement;
(v) any language which allows termination of the agreement automatically, except 
upon termination of the underlying policy, or at the sole option of the 
reinsurer on less than 30 days prior written notice;
(vi) any language that specifies the amounts to be reimbursed to the ceding 
insurer at fixed or determinable future dates, or includes predetermined payment 
schedules, delayed payment clauses, or formulas that, in substance, delay 
reimbursement to the ceding insurer; or
(vii) no cash payment is due from the reinsurer throughout the lifetime of the 
contract with all settlements prior to the termination date of the agreement 
made only in a reinsurance account.
(B) The following descriptions of treaty provisions are prohibited provisions 
which, if included in substance or effect in a contract shall, for reinsurance 
ceded, result in disallowance of credit for reinsurance:
(i) the agreement provides for adjustments that allow the assuming insurer's 
gain or loss to be determinable in advance;
(ii)  the ceding insurer can be deprived of surplus at the reinsurer's option or 
automatically upon the occurrence of some event, such as the insolvency of the 
ceding insurer; except that termination of the contract for nonpayment of 
reinsurance premiums shall not be considered to be such a deprivation of 
surplus;
(iii) the entry of an order of rehabilitation a supervisor, conservator, or 
receiver of the ceding insurer shall constitute either an anticipatory breach of 
any contracts of the ceding insurer; grounds for retroactive commutation or 
retroactive cancellation; or grounds for retroactive revocation of any contracts 
of the ceding insurer; or
(iv) any language which allows cancellation regarding obligations reinsured 
prior to the date of termination of the agreement, except that nothing contained 
herein would preclude a subsequent commutation of reinsurance coverage upon 
terms mutually agreeable to the parties to the agreement. This paragraph is not 
intended to limit the actions of the supervisor, conservator, rehabilitator, 
liquidator, or receiver of the ceding company.
(8) Notwithstanding paragraphs (1)-(7) inclusive, of this subsection, a ceding 
insurer subject to this section may, with the prior written approval of the 
commissioner of the Texas Department of Insurance, reduce its liability or 
establish an asset in an amount as the commissioner may allow. All its financial 
statements thereafter shall, by footnote, identify such reduced liability or 
increased asset established on the financial statement and shall reference the 
commissioner's prior written approval.
(e) Written contracts.
(1) No reinsurance contract or amendment to any such contract may be used to 
reduce liability or to establish any asset in any quarterly or annual financial 
statement filed with the Texas Department of Insurance, unless the contract or 
amendment thereto or a letter of intent has been duly executed by both parties, 
except for facultative certificates duly executed by the reinsurer or its duly 
appointed agent, no later than the "as of" date of the quarterly or annual 
financial statement. A letter of intent may consist of a cover note or placement 
slip signed by the assuming insurer or its designated agent and accepted in 
writing by the ceding insurer.
(2) In the case of a letter of intent, a contract or amendment to a contract 
must be executed within a reasonable period of time, not exceeding 90 days from 
the execution date of the letter of intent, in order for credit to be granted 
for the reinsurance ceded. This provision shall govern unless it is explained to 
the satisfaction of the Texas Department of Insurance why such contract has not 
been executed within 90 days. The Texas Department of Insurance may, at its 
discretion, allow an additional period of time for execution not to exceed an 
additional 90 days (for a total of 180 days) from the execution date of the 
letter of intent.
(f) Existing contracts. Insurers subject to this section may continue to reduce 
liabilities or establish assets in financial statements filed with the State 
Board of Insurance for reinsurance ceded under the types of reinsurance 
contracts described in subsection (a)(2) of this section and in subsection (d) 
of this section, provided:
(1) the reinsurance contracts were executed and in force prior to December 31, 
1991;
(2) no new business is ceded under the contract after the effective date of this 
section;
(3) the reduction of the liability or the asset established for the reinsurance 
ceded is reduced to zero by December 31, 1993, or such later date approved by 
the commissioner of the Texas Department of Insurance as a result of an 
application made by the ceding insurer within 120 days of the adoption date of 
this section;
(4)  the reduction of the liability or the establishment of the asset is 
otherwise permissible under all other applicable provisions of the Insurance 
Code or rules or regulations, including actuarial interpretations or standards, 
adopted by the Texas Department of Insurance; and
(5) the Reinsurance Activity of the Texas Department of Insurance is notified, 
within 90 days following the effective date of this section, of the existence of 
such contracts and all corresponding credit for reinsurance taken in the ceding 
insurer's December 31, 1991, financial statement and all subsequent financial 
statements.
(g) Effective date. This section becomes effective December 31, 1991.
(h) Severability. If any provision of this section or the application thereof to 
any person or circumstance is held invalid for any reason, the invalidity shall 
not effect the other provisions of this section which can be given effect 
without the invalid provisions or application. To this end, all provisions of 
this section are declared to be severable.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 6, 1991.
TRD-9115387
Linda K. von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 27, 1991
Proposal publication date: October 1, 1991
For further information, please call: (512) 463-6328
       
Chapter 9. Title Insurance
Subchapter A. Basic Manual of Rules, Rates, and Forms for the Writing of Title 
Insurance in the State of Texas
28 TAC sec.9.31
The State Board of Insurance adopts new sec.9.31, without changes to the 
proposed text as published in the June 18, 1991, issue of the Texas Register (16 
TexReg 3301).
Section 9.31 concerns adoption by reference of an amendment to a rate rule for 
providing a credit on a subsequent issuance of a mortgagee policy, under certain 
conditions. The section is necessary to provide replacement or substitute 
mortgagee policies available to consumers in the event an insolvent insurer has 
been placed in permanent receivership.
Section 9.31 adopts by reference new Rate Rule R-6c in the Basic Manual of 
Rules, Rates, and Forms for the Writing of Title Insurance in the State of 
Texas. Rate Rule R-6c provides for a credit of one-half of the basic premium 
rate for a subsequent issue of a mortgagee policy, on a lien already covered by 
an existing mortgagee policy, but not to take up, renew, extend, or satisfy an 
existing lien, in the event an insolvent insurer is placed in permanent 
receivership. The new section also requires surrender of the original mortgagee 
policy to the company when requesting a subsequent issue.
No comments were received regarding adoption of the new section.
The new section is adopted under the Insurance Code, Articles 1.04, 9.07, 9. 21 
and 9.30, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The 
Insurance Code, Article 1.04, authorizes the State Board of Insurance to 
determine policy and rules. The Insurance Code, Article 9.07, authorizes and 
requires the board to promulgate or approve forms for policies of title 
insurance, to require title insurance companies and agents to submit information 
material for the board's consideration, and otherwise to provide for the 
regulation of the business of title insurance. The Insurance Code, Article 9.21, 
authorizes the board to promulgate and enforce rules and regulations prescribing 
underwriting standards and practices, and to promulgate and enforce all other 
rules and regulations necessary to accomplish the purposes of the Insurance 
Code, Chapter 9, concerning the regulation of title insurance. The Insurance 
Code, Article 9.30, prohibits rebates and discounts and provides for division of 
premiums between title insurance companies and title insurance agents as shall 
be set by the State Board of Insurance. Texas Civil Statutes, Article 6252-13a, 
sec.4, authorizes and requires each state agency to adopt rules of practice 
setting forth the nature and requirements of available procedures. Section 5 of 
that article prescribes the procedure for adoption of rules by a state 
administrative agency.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 4, 1991.
TRD-9115198
Linda K. von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 26, 1991
Proposal publication date: June 18, 1991
For further information, please call: (512) 463-6328
       
Chapter 15. Surplus Lines Insurance
Subchapter A. General Regulation of Surplus Lines Insurance
28 TAC sec.15.24
The State Board of Insurance adopts an amendment to 28 TAC sec.15.24, without 
changes to the proposed text as published in the October 1, 1991, issue of the 
Texas Register (16 TexReg 5387).
Section 15.24 concerns premium tax on surplus lines insurance coverage. The 
amendment updates the tax rate from 3.85% to 4.85% to comport with the current 
Article 1.14-2, sec.12(a).
This amendment is necessary to ensure that the tax rate indicated under sec.15. 
24 corresponds to current law. This will preclude confusion and permit surplus 
lines agents to use the correct and applicable tax rate in collection of surplus 
lines premium taxes from the insureds.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Insurance Code, Articles 1.04 and 1.14-2. 
Article 1.04 authorizes the State Board of Insurance to determine rules in 
accordance with the laws of this state. Article 1.14-2, 3A, provides that the 
State Board of Insurance may promulgate rules to enforce Articles 1.14-2 and 
provides that the Texas Department of Insurance shall monitor the activities of 
surplus lines to the extent necessary to protect the public interest.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 6, 1991.
TRD-9115388
Linda K. von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 27, 1991
Proposal publication date: September 27, 1991
For further information, please call: (512) 463-6328
       
28 TAC sec.15.25
The State Board of Insurance adopts an amendment to 28 TAC sec.15.25, without 
changes to the proposed text as published in the September 27, 1991, issue of 
the Texas Register (16 TexReg 5316).
Section 15.25 concerns administration and maintenance of surplus lines premium 
tax trust accounts.
This amendment is necessary to ensure that the balances in surplus lines premium 
tax trust accounts are maintained at an amount less than the depositor's 
insurance maximum of $100,000. The amendment offers direction to agents in 
maintaining trust accounts by providing an option to prepay taxes in an amount 
of not less than $50,000, or requires current rules regarding multiple accounts, 
each below the insured limit, to be followed.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Insurance Code, Articles 1.04 and 1.14-2. 
Article 1.04 authorizes the State Board of Insurance to determine rules in 
accordance with the laws of this state. Article 1.14-2, 3A, provides that the 
State Board of Insurance may promulgate rules to enforce Article 1.14-2 and 
provides that the Texas Department of Insurance shall monitor the activities of 
surplus lines to the extent necessary to protect the public interest.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 6, 1991.
TRD-9115389
Linda K. von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 27, 1991
Proposal publication date: September 27, 1991
For further information, please call: (512) 463-6328
       
TITLE 31. NATURAL RESOURCES AND CONSERVATION
Part II. Texas Parks and Wildlife Department
Chapter 57. Fisheries and Wildlife
Commercially Protected Finfish
31 TAC sec.sec.57.371-57.375
The Texas Parks and Wildlife Department adopts amendments to sec.sec.57.371-57. 
373 and new sec.57.374 and sec.57.375, concerning commercially protected finish. 
Sections 57.372 and 57.373 are adopted with changes to the proposed text as 
published in the October 4, 1991, issue of the Texas Register (16 TexReg 5485). 
Sections 57.371, 57.374, and 57.375 are adopted without changes and will not be 
republished.
Specifically, the changes were to sec.57.372(b), concerning the size of the 
container in which commercially protected finfish can be packaged; sec.57.372(d) 
(2)(F), (e)(2)(F), and (f)(2)(F), concerning requirements for information on the 
commercially protected finfish shipping invoice; and sec.57.373(b)(2), 
concerning the labeling of packages. The proposed regulations were liberalized 
in these sections to allow for the packaging of large fish in any size container 
as long as no more than three fish are contained therein and to allow only a 
requirement for weight on the shipping invoices and the package labels when the 
commercially protected finfish being shipped is king mackerel or Spanish 
mackerel.
The adopted rules have as their factual basis the requirement to comply with 
provisions of House Bill 2494, Acts, 72nd Legislature concerning commercially 
protected finfish species and department experience with the methods to manage 
the packaging and shipping of commercially protected finfish.
The new rules and amendments are needed to provide for the protection of 
commercially protected finfish as designated by House Bill 2494, Acts, 72nd 
Legislature.
The new rules and amendments will provide for the packaging and shipping of 
commercially protected finfish that is exported, imported, or transported 
intrastate.
Comments by the public about the proposed amendment were presented to the Parks 
and Wildlife Commission in its November 7, 1991, public hearing. The comments 
were summarized from the meetings conducted with representatives of the seafood 
marketing industry with the state. While the proposed regulations were 
distributed to approximately 125 seafood marketers, no letters or telephone 
calls were received on the proposals.
Comments made at the public hearing on November 7, 1991, concerned balancing the 
need to protect the resource with consideration for the economic well-being of 
the seafood industry; opposition to the regulations; complexity of the record 
keeping and paperwork requirements; the proposed container size was considered 
too small; fish weight should be used in the invoicing rather than numbers and 
weight especially in king mackerel and Spanish mackerel; bulk shipments should 
be allowed on imported shipments; and impacts on aquaculturists.
The representative of a coalition of seafood marketers expressed concern for the 
limited size of the proposed container; the requirement to count commercially 
protected finfish for invoicing purposes; and the absence of provisions to 
exempt commercially protected finfish shipped in bulk on ice specifically, king 
mackerel, Spanish mackerel, cobia, and jewfish.
The commission disagreed with several comments received specifically dealing 
with measures that would allow for bulk shipments of king mackerel, Spanish 
mackerel, cobia, and jewfish since it would limit the ability to track 
commercially protected finfish in commerce and therefore have the potential the 
protection of these resources within the state's waters. Cobia was mentioned by 
the commission as one example of a fisheries resource which is in need of 
protection due to concerns over the available stocks. The commission accepted 
the concerns expressed over the size of the proposed container and the 
requirement to count king mackerel and Spanish mackerel. The proposed rules were 
modified in consideration of these concerns.
The new sections and amendments are adopted under the Texas Parks and Wildlife 
Code, sec.66.020, which provides the Texas Parks and Wildlife Commission with 
authority to regulate the importation of commercially protected finfish into 
Texas.
sec.57.372. Packaging Requirements.
(a) All commercially protected finfish imported into this state for sale, 
exported from this state for sale, or being transported intrastate for sale, 
shall be packaged, one species per package.
(b) A package is defined as a container (and such invoices and identifying 
documents as are required by these rules) whose volume is no greater than six 
cubic feet or any container that does not contain more than three individual 
fish. Each container must be independent of any other container and of any 
trailer, vehicle, or other type of conveyance.
(c) Each packaged shipment of commercially protected finfish shall be 
accompanied by an import commercially protected finfish shipping invoice, an 
intrastate commercially protected finfish shipping invoice, or an export 
commercially protected finfish shipping invoice (Figure 1).
(d) An import commercially protected finfish shipping invoice shall:
(1) accompany all shipments of commercially protected finfish entering the 
state;
(2) contain all of the following information, correctly stated and legibly 
written:
(A) commercially protected finfish shipping invoice number;
(B)-(D) (No change.)
(E) shipper's and receiver's Texas finfish import license number when required;
(F)-(G) (No change.)
(3) be submitted in Figure 1, with an "X" placed in the import box for shipments 
originating outside Texas with a destination within Texas:
(4)  (No change.)
(e) An intrastate commercially protected finfish shipping invoice (Figure 1) 
shall:
(1) accompany all shipments of commercially protected finfish shipped from 
within the state to a destination within the state;
(2) contain all of the following information, correctly stated and legibly 
written:
(A) commercially protected finfish shipping invoice number;
(B)-(D) (No change.)
(E)  shipper's and receiver's Texas finfish import license number when required;
(F) number and weight of whole fish or fillets, by species, contained in the 
shipment except that invoices for shipments of king mackerel and Spanish 
mackerel are not required to contain the number of fish; and
(G) state (or country, if outside the United States) of origin.
(3) be submitted in Figure 1, with an "X" placed in the Intrastate box for 
shipments originating inside Texas with a destination within Texas:
(4) (No change.)
(f)  An export commercially protected finfish shipping invoice (Figure 1) shall:
(1) accompany all shipments of commercially protected finfish shipped from 
within the state to a destination outside Texas;
(2) contain all of the following information, correctly stated and legibly 
written:
(A)  commercially protected finfish shipping invoice number;
(B) date of shipment;
(C) name and address of shipper;
(D) name and address of receiver;
(E) shipper's and receiver's Texas finfish import license number when required;
(F) number and weight of whole fish or fillets, by species, contained in the 
shipment except that invoices for shipments of king mackerel and Spanish 
mackerel are not required to contain the number of fish; and
(G) state (or country, if outside the United States) of origin.
(3) be submitted in Figure 1, with an "X" placed in the Export box for shipments 
originating inside Texas with a destination outside of Texas:
(4) be sequentially numbered during the license period. No invoice number may be 
used twice during any one license period by an individual licensee.
(g) Each commercially protected finfish shipping invoice shall be duplicated by 
the licensee.
(1)  One copy shall be submitted to the Texas Parks and Wildlife Department 
Regional Law Enforcement Office by the shipper by the 10th day of the month 
following the month of shipping of each intrastate or export shipment.
(2)  One copy shall be retained by the licensee for a period of one year from 
the date of receipt of each imported shipment or from the date of shipping of 
each intrastate or exported shipment.
(3) One copy shall be retained by the receiver for a period of one year from the 
date of receipt of each import, intrastate, or export shipment.
(4) One copy shall be submitted to the Texas Parks and Wildlife Department 
Regional Law Enforcement Office by the receiver of each import, intrastate, or 
export shipment by the 10th day of the month following the month of receipt.
[graphic]
sec.57.373. Package Labels.
(a) Each package of commercially protected finfish shall be labeled as to its 
contents.
(b) The package label shall be placed on the outside of each package and shall 
contain all of the following information, correctly stated and legibly written:
(1)  commercially protected finfish shipping invoice number of the shipment of 
which the container is a part; and
(2) the number, kind, and weight of whole fish or fillets by species contained 
in each package except that package labels for shipments of king mackerel and 
Spanish mackerel are not required to contain the number of fish.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115293
Paul M. Shinkawa
Director, Legal Services
Texas Parks and Wildlife Department
Effective date: December 28, 1991
Proposal publication date: October 4, 1991
For further information, please call: 1-800-792-1112, ext. 4863 or (512) 389-
4863
       
Regulation for Importation of Redfish and Speckled Seatrout
31 TAC sec.sec.57.374, 57.375, 57.376
The Texas Parks and Wildlife Commission in a regularly scheduled public hearing 
held November 7, 1991, adopts repeal of sec. sec.57.374-57.376, concerning the 
marking of vehicles transporting red drum and speckled sea trout, without 
changes to the proposed text as published in the October 4, 1991, issue of the 
Texas Register (16 TexReg 5489). The repeal will comply with the provisions of 
House Bill 2494, Acts, 72nd Legislature, and to simplify and avoid duplication 
in the regulations.
The repeal allows new rules and amendments to be adopted in 31 TAC sec.sec.57. 
371-57.376, which protects additional finfish species.
The repeal allows new rules and amendments to be adopted.
No comments were received regarding adoption of the repeals.
The repeals are adopted under the Texas Parks and Wildlife Code, sec.66.020, 
which authorizes the Texas Parks and Wildlife Commission to regulate the 
importation of commercially protected finfish into Texas.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas on December 6, 1991
TRD-9115294
Paul M. Shinkawa
Director, Legal Services
Texas Parks and Wildlife Department
Effective date: December 28, 1991
Proposal publication date: October 4, 1991
For further information, please call: 1-800-792-1112, ext 4863, or (512) 389-
4863
       
Part III. Texas Air Control Board
Chapter 101. General Rules
31 TAC sec.101.1
The Texas Air Control Board (TACB) adopts an amendment to sec.101.1, concerning 
definitions, without changes to the proposed text as published in the June 7, 
1991, issue of the Texas Register (16 TexReg 3128).
The amendment to sec.101.1 adds a definition for liquid fuel. This definition is 
added in support of a simultaneous revision to sec.112.6, concerning Allowable 
Rates-Liquid Fuel-Fired Steam Generators, which limits the sulfur content of 
liquid fuel in Harris and Jefferson Counties. The new definition would be 
consistent with terminology now used by the United States Environmental 
Protection Agency (EPA).
Public hearings were held in Beaumont on July 1, 1991 and in Houston on July 2, 
1991, to consider proposed revisions to TACB Regulation II and the General 
Rules. One individual supported the entire proposal. No other written or oral 
testimony was received on this amendment during the comment period which ended 
July 5, 1991.
The amendments are adopted under the Texas Clean Air Act (TCAA), Texas Health 
and Safety Code, (Vernon 1990), sec.382.017, which provides the TACB with the 
authority to adopt rules consistent with the policy and purposes of the TCAA.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 4, 1991.
TRD-9115225
Lane Hartsock
Deputy Director, Air Quality Planning
Texas Air Control Board
Effective date: December 26, 1991
Proposal publication date: June 7, 1991
For further information, please call: (512) 908-1451
       
Chapter 112. Control of Air Pollution from Sulfur Compounds
31 TAC sec.112.6, sec.112.20
The Texas Air Control Board (TACB) adopts amendments to  sec.112.6 and sec.112. 
20, concerning control of sulfur dioxide. Section 112.6 is adopted with changes 
to the proposed text as published in the June 7, 1991, issue of the Texas 
Register (16 TexReg 3128). Section 112.20 is adopted without changes and will 
not be republished. The amendments have been developed to reduce existing and 
potential exposure to sulfur dioxide in Harris and Jefferson Counties. The 
primary effect of the amendments is to supersede and remove the permitted 
flexibility of numerous sources in the two counties which currently enables them 
to convert from natural gas and/or low sulfur liquid fuels to high sulfur liquid 
fuels. Removal of the flexibility to utilize high sulfur liquid fuel is expected 
to help prevent future air quality deterioration.
The amendment to sec.112.6, concerning allowable rates-liquid fuel-fired steam 
generators, adds a requirement that limits the sulfur content of liquid fuels 
combusted in Harris and Jefferson Counties to 0.3 weight percent, and sulfur 
dioxide emissions from liquid fuel combustion to 150 parts per million by volume 
(ppmv). Existing stocks of sulfurized fuels above 0.3 weight percent may be co-
burned with low sulfur fuels as long as the 150 ppmv emissions limit is 
achieved. The amendment to sec.112.20, concerning compliance deadlines, adds a 
compliance date for the new requirements.
Public hearings were held in Beaumont on July 1, 1991, and in Houston on July 2, 
1991 to consider proposed revisions to TACB Regulation II and the general rules. 
Testimony was received from six commenters during the comment period which ended 
July 5, 1991. One individual supported the entire proposal. The following 
discussion addresses the other comments received, all of which concerned the 
proposed revision to sec.112.6.
Several commenters, The Greater Houston Partnership; Houston Lighting & Power 
Company; ProCycle Oil, Inc. (Procycle), requested clarification concerning the 
use of blended, mixed, or reclaimed fuels as long as the limits of the rule were 
met. The language of the proposed regulation allows whatever methods industry 
chooses, including blending, mixing, or co-burning of any fuels, as long as the 
end result is liquid fuel with a sulfur content not greater than 0.3 percent by 
weight or emissions of sulfur dioxide not exceeding 150 ppmv. After further 
review, the staff feels that additional clarification is needed on the 
requirement of 150 ppmv sulfur dioxide emissions and is recommending the 
addition of a requirement that the sulfur dioxide emissions be calculated based 
upon 20% excess air.
Two commenters, ProCycle and Texas Hot Mix Asphalt Pavement Association (Texas 
Hot Mix), requested clarification on whether the proposed regulations applied to 
hot mix asphalt kilns, and if so, they requested an exemption. The proposed 
rules apply to all liquid fuel-fired steam generators, furnaces, or heaters in 
Harris and Jefferson Counties, including those operated at hot mix asphalt 
plants. The fuel for hot mix asphalt kilns can be blended, mixed, or co-burned 
with low sulfur fuels so that the requirements of the regulation are met; 
however, a specific exemption will not be allowed. Furthermore, this regulation 
precludes the use of 1.5 weight percent sulfur as allowed in TACB Standard 
Exemption 99 in Harris and Jefferson Counties.
For purposes of clarification, however, it should be stated that it was not the 
intent of these proposed revisions to apply to combustion devices related to 
sulfuric acid plants. Sulfuric acid plants require a high sulfur content to 
produce the acid.
Texas Hot Mix requested that consideration be given to the fact that hot mix 
asphalt plants operate intermittently. The intention of the proposed regulations 
is to establish instantaneous standards for sulfur dioxide emissions. Therefore, 
it is irrelevant how often a plant operates.
The United States Environmental Protection Agency raised the concern that 
without the requirement for continuous emissions monitoring there is no method 
of enforcing the proposed regulation. The addition of continuous emissions 
monitoring requirements would be more restrictive than the proposed regulation 
and can not be added without the opportunity for public comment. Revised 
regulations requiring continuous emissions monitoring for sulfur dioxide 
emissions will be considered in future rulemaking.
The amendments are adopted under the Texas Clean Air Act (TCAA), sec.382.017, 
Texas Health and Safety Code Annotated (Vernon 1990), which provides TACB with 
the authority to adopt rules consistent with the policy and purposes of the 
TCAA.
sec.112.6. Allowable Rates-Liquid Fuel-Fired Steam Generator.
(a) -(c) (No change.)
(d) No person in Harris or Jefferson Counties may cause, suffer, allow, or 
permit the use of liquid fuel for combustion from any stationary liquid fuel-
fired steam generator, furnace, or heater with a sulfur content greater than 
0.3% by weight or emissions of sulfur dioxide from any liquid fuel-fired steam 
generator, furnace, or heater to exceed 150 ppm, by volume, as calculated based 
on 20% excess air. The requirements of this subsection are not intended to apply 
to sulfuric acid plants.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 4, 1991.
TRD-9115226
Lane Hartsock
Deputy Director, Air Quality Planning
Texas Air Control Board
Effective date: December 26, 1991
Proposal publication date: June 7, 1991
For further information, please call: (512) 908-1451
       
Part IX. Texas Water Commission
Chapter 305. Consolidated Permits
Subchapter M. Waste Treatment Inspection Fee Program
The Texas Water Commission adopts amendments to sec.sec.305.501, 305.502, and 
305.504, the repeal of sec.305.503, and new  sec.305.503, concerning the waste 
treatment inspection fee program. New sec.305.503 is adopted with changes to the 
proposed text as published in the October 4, 1991, issue of the Texas Register 
(16 TexReg 5492). The amendments to sec.sec.305.501, 305.502, and 305. 504 are 
adopted without changes and will not be republished.
The Water Code, sec.26.0291, authorizes the commission to assess an annual fee 
against each permittee holding a permit for wastewater treatment or discharge 
issued under the Water Code, Chapter 26. In determining the revenue to be 
derived from these assessments, the commission considers the funds available 
from all authorized sources and the requirements to meet budgeted expenses of 
the water quality activities to which these fee revenues may be allocated. In 
determining the amount of the fee, the commission may consider permitting 
factors such as flow volume, toxic pollutant potential, levels of traditional 
pollutants, and heat load. In addition, the commission may consider the 
designated uses and the ranking classifications of the waters affected by 
discharges from the permitted facility.
Senate Bill 1525, Acts of the 71st Legislature, 1989, amends the Water Code to 
enable the commission to obtain delegation from the federal government of the 
national pollutant discharge elimination system (NPDES) regulatory authority in 
accordance with the Federal Water Pollution Control Act, sec.402(b). Senate Bill 
1525 amends the Water Code, sec.26.0291 by adding provisions which will be 
effective upon delegation of NPDES permit authority to the commission. In order 
to provide the funding necessary to pay the expenses of the commission in 
administering the NPDES program, Senate Bill 1525 authorizes the commission to 
increase the maximum allowable annual wastewater facility fee from $11,000 to 
$15,000 and to consider the costs of obtaining and administering the NPDES 
program, in addition to the other factors, in establishing rates for fee 
assessments. The commission has previously proposed rules, published December 
14, 1990 (15 TexReg 7152), which would have increased all wastewater facility 
fees and conditionally implemented an incremental fee for designated major 
permits to fund the NPDES program under the authority of Senate Bill 1525. Due 
to uncertainties regarding the anticipated funding that would be required for 
both existing program activities and potential new functions under the NPDES 
program in the 1992-1993 biennium, this proposal was withdrawn and no action 
taken. These rules, as adopted, incorporate some authority of Senate Bill 1525 
to make certain revisions to the fee program, including increasing the maximum 
fee, but do not contemplate any increase in the maximum fee at this time nor any 
differential treatment of major and minor permits beyond the provisions that are 
in the current rule. To meet the requirements for funds anticipated during the 
1992-1993 biennium, the commission proposes to modify certain features of the 
rate schedule for determination of wastewater inspection fees and increase the 
fee rates. In addition, the commission adopts a provision which would increase 
the maximum annual waste treatment facility fee from $11,000 to $15,000. This 
provision would be effective only upon completion of delegation of NPDES permit 
authority to the commission by the Environmental Protection Agency.
Under the current rate schedule, each permit for which discharge parameters have 
been established is assigned a variable number of points based on the values of 
the specific permit parameters. The point values for permits without variable 
discharge limitations are set as fixed values by rule. The fee is determined by 
multiplying the total number of points assigned to a permit by the rate of $50 
per point, up to a maximum of $11,000. Inactive permits are assessed a uniform 
fee of $150, regardless of the applicable permit parameters. All evaporation and 
land disposal permits are assessed a uniform fee of $200, regardless of permit 
type or application rate. Industrial permits are evaluated and assessed fees 
based on pollutant potential, which is determined by categorizing permitted 
facilities in groups by standard industrial classification and by type of 
operation. Municipal (domestic) permits are not currently evaluated on a similar 
basis for pollutant potential.
Fee assessments for all permits will increase from $50 to $70 per point. This 
generally represents an increase of 40%, except for a permit which might exceed 
the maximum fee, in which case the increase would be less. In addition, other 
changes are adopted. The most significant change is the deletion of the fixed 
value of three points for an inactive permit. Under this rule, inactive permits 
would be evaluated and rated on the basis of the applicable permit parameters 
and conditions, regardless of the construction or operational status of the 
facility. The fee for an inactive permit would be 25% of that for an active 
permit for fiscal year 1992, increasing to 50% in subsequent years. All permits 
which do not authorize discharge to surface waters, such as those for 
evaporation ponds or irrigation systems, currently are assessed a fee on the 
basis of a set point value of four points, which under the current rate is 
equivalent to an annual fee of $200. Under the rule as adopted, industrial and 
agricultural non-surface water discharge permits would be assigned a set point 
value of five points; municipal (domestic) non-surface water discharge permits 
would be assigned set point values of four points for facilities authorized up 
to 0.1 million gallons per day (mgd) and 10 points for facilities authorized at 
0.1 mgd or greater.
Some permits authorize both process wastewater discharges, to which specific 
discharge limitations apply, and stormwater discharges, without specific 
discharge limitations. Under current assessment procedures, the authorization 
for stormwater discharge may not be considered in the determination of the total 
point values for the permit and the corresponding fee which is to be assessed. 
The rules will clarify the determination of the assessment in these cases and 
ensure that all permits are evaluated equitably on the basis of all parameters 
and conditions applicable.
In addition, the date for which permit status and the fee assessment are 
determined is changed from October 1st of each year to September 1st in order to 
correspond to the beginning of the state fiscal year. It is the intention of the 
commission, in order to ensure the availability of funds for the beginning of 
each fiscal year and to provide for the effective management of cash resources, 
that fee assessments be distributed and payments received at the earliest 
possible time each fiscal year.
Section 305.503 is changed to reduce the impact of the proposed changes for 
inactive permits. Under the rule as originally proposed, some inactive 
facilities could be assessed fees of $11,000, compared to the existing fee of 
$150. The change adopted, with the addition of new subsection (i), will phase-in 
the increase for inactive facilities, imposing a fee of 25% of the calculated 
amount for the current fiscal year, increasing to 50% of the amount in 
subsequent years. This change will mitigate the full effect of the increase for 
inactive facilities and maintain some distinction in the amounts paid for 
inactive and active facilities.
Comments regarding the proposed rules were received from a number of permit 
holders. Commenters generally felt that an increase in fees for inactive 
facilities up to an amount assessed for an active permit was unjustified, and 
that while some increase was appropriate, the fee for an inactive facility 
should be less than that for an active facility. The commission agrees that a 
differential between fees for active and inactive facilities is justified and 
that the effect of the significant fee increase for inactive facilities should 
be mitigated. Changes made to sec.305.503 will reduce the proposed fee increase 
and allow two years for phasing-in the higher assessments.
31 TAC sec.sec.305.501-305.504
The amendments and new section are adopted under the Texas Water Code, 
sec.26.0291, as amended by Senate Bill 1525, Acts of the 71st Legislature, 1989, 
which authorizes the Texas Water Commission to revise fee rates for waste 
treatment facilities in order to obtain and administer a delegated national 
pollutant discharge elimination system (NPDES) permit program, and sec.5.102 and 
sec.5.105, which provides the Texas Water Commission with the authority to adopt 
any rules necessary to carry out its powers and duties under the Code and other 
laws of the State of Texas, and to establish and approve all general policy of 
the commission.
sec.305.503. Fee Assessment.
(a) An annual waste treatment inspection fee is assessed against each person 
holding a permit issued under the authority of the Water Code, Chapter 26. The 
amount of the fee is determined by specific permit parameters for which a 
facility is authorized as of each September 1. The maximum fee which may be 
assessed each permit is $11,000, except that upon delegation of national 
pollutant discharge elimination system (NPDES) permit authority to the 
commission, the maximum fee which may be assessed is $15,000.
(b) In assessing a fee, the commission may consider the following parameters for 
each permit:
(1) pollutant potential;
(2) flow volume;
(3) traditional pollutants;
(4) heat load;
(5) major/minor designation;
(6) the designated uses and ranking classification of waters affected by waste 
discharges; and
(7) the costs of obtaining and administering the Texas pollutant discharge 
elimination system program, upon delegation by the Environmental Protection 
Agency.
(c) Except as provided in subsection (g) of this section, the commission shall 
assign a point value to each of the permit parameters in subsection (b) of this 
section. The assigned value(s) shall be weighted according to the specific 
permit limits and the weighted values summed. Either the sum of the variable 
point values under subsection (f) of this section or the set point values 
established under subsection (g) of this section are multiplied by the current 
fee rate under subsection (h) of this section to determine the fee to be 
assessed.
(d) For the purpose of fee calculation, COD and TOC are converted to BOD values 
and the higher value is assessed points. The conversion for TOC is: three pounds 
of TOC is equal to one pound of BOD (3:1). The conversion for COD is eight 
pounds of COD is equal to one pound of BOD (8:1).
(e) For the purpose of fee calculation, a permit which authorizes a secondary 
treatment system consisting of ponds or lagoons at limits of 30 mg/1 BOD and 90 
mg/1 TSS shall be assumed to be equivalent to 20 mg/1 BOD and 20 mg/1 TSS. This 
equivalency is based on treatment provided by different types of secondary 
treatment systems.
(f)  Except as provided in subsection (g) of this section, each permit shall be 
assessed a fee based on the specific parameters assigned to the permit and 
determined by the following schedule. Each permit shall be reviewed to determine 
the individual values for the parameters covered by this schedule:
(1)  Pollutant Potential.
(A) Industrial Discharges.
[graphic]
(B) Domestic Discharges.
[graphic]
(2) Flow Volume.
(A) Type I (Contaminated):
[graphic]
(B) Type II (Uncontaminated):
[graphic]
(3) Traditional Pollutants.
(A) Oxygen demand. (COD and TOC limits are converted to BOD values and the 
higher value is used.)
[graphic]
(B) Total Suspended Solids.
[graphic]
(C) Ammonia.
[graphic]
(4) Heat Load.
[graphic]
(5) Major/Minor Designation.
[graphic]
(g) Set Point Permits. The following fees are assessed for permits to which the 
parameters under subsection (f) of this section are not applicable:
(1) Evaporation/Land Application Permits.
[graphic]
(2) Stormwater/Report Permits = 12 points Stormwater permits for which discharge 
parameters have been established shall be assessed a fee under subsection (f) of 
this section.
[graphic]
(h) The annual fee to be assessed is calculated by multiplying the total points 
determined under subsection (f) of this section and/or subsection (g) of this 
section by the rate of $70 per point. Permits having both process wastewater 
discharges assessed under subsection (f) of this section and stormwater 
discharges assessed under subsection (g) of this section shall be assessed the 
total of the fees determined under the respective subsections, not to exceed the 
maximum fee under subsection (a) of this section.
(i)  Until August 31, 1992, the fee assessed an inactive permit shall be 25% of 
that calculated under subsection (f) and/or subsection (g) of this section. 
Beginning September 1, 1992, the fee assessed an inactive permit shall be 50% of 
that calculated under subsection (f) and/or subsection (g) of this section. In 
no event shall the fee for an inactive permit be less than $100 per year.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115414
John Vay
Director, Legal Services Division
Texas Water Commission
Effective date: December 30, 1991
Proposal publication date: October 4, 1991
For further information, please call: (512) 463-8069
       
31 TAC sec.305.503
The repeal is adopted under the Texas Water Code, sec.26.0291, as amended by 
Senate Bill 1525, Acts of the 71st Legislature, 1989, which authorizes the Texas 
Water Commission to revise fee rates for waste treatment facilities in order to 
obtain and administer a delegated national pollutant discharge elimination 
system (NPDES) permit program, and sec.5.102 and sec.5.105, which provides the 
Texas Water Commission with the authority to adopt any rules necessary to carry 
out its powers and duties under the Code and other laws of the State of Texas, 
and to establish and approve all general policy of the commission.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115413
John Vay
Director, Legal Services Division
Texas Water Commission
Effective date: December 30, 1991
Proposal publication date: October 4, 1991
For further information, please call: (512) 463-8069
       
Chapter 320. Regional Assessments of Water Quality
Program for Assessment of Water Quality by Watershed and River Basin
31 TAC sec.sec.320.1-320.9
The Texas Water Commission adopts new sec.sec.320.1-320.9, concerning a program 
for assessment of water quality by watershed and river basin. Sections 
sec.sec.320.1, 320.3, 320.6, and 320.7 are adopted with changes to the proposed 
text as published in the November 1, 1991, issue of the Texas Register (16 
TexReg 6195). Sections sec.sec.320.2, 320.4, 320.5, 320.8, and 320.9 are adopted 
without changes and will not be republished.
New sec.sec.320.1-320.9 replace sec.sec.320.1-320.9 which were adopted as 
emergency rules by the Texas Water Commission and which were published in the 
October 4, 1991, issue of the Texas Register (16 TexReg 5439). New sec. 
sec.320.1-320.9 are adopted to implement a regional water quality assessment 
program required by Senate Bill 818, 72nd Legislature, 1991. The new sections 
establish a program for the assessment of historical, existing, and projected 
water quality conditions in order to meet the goals of maintaining and improving 
the state's water resources. As stated in the preamble for the proposed rules, 
the new sections require that water quality assessments be performed and 
biennial assessment reports be prepared for each watershed and river basin in 
the state by river authorities, the commission, and governmental entities which 
have been designated by the commission to perform the assessments. The new 
sections are adopted with the intent of Texas Water Commission Regional 
Assessments of developing water quality assessments in each watershed and to 
encourage a cooperative partnership and avoid, as much as possible, duplication 
of efforts among river authorities, the Texas Water Commission, other state 
agencies, local governments, other political subdivisions, and regulated 
entities. It is anticipated that the program established by these sections will 
be implemented in two phases, with the first phase focusing on information 
gathering, and the second phase requiring an evaluation and analysis of the 
information collected.
New sec.320.1 is adopted with changes to the proposed text. New sec.320.1 
provides that the assessments will be conducted in a manner which avoids 
duplication of efforts. Regulated entities have been added to this section under 
the statement which provides that the assessments will be conducted in a manner 
which avoids duplication of efforts. Additionally, some minor grammatical 
changes were made to sec.320.1. New sec.320.3 is adopted with a change to the 
proposed text in order to make this section on definitions and abbreviations 
applicable to Chapter 320, and not just sec.sec.320.3-320.9. Section 320.6 is 
adopted with the following changes to the proposed text. Section 320.6(b)(7), 
which requires an identification of wells, has been amended to exclude from the 
reporting requirement information on active and properly plugged wells, 
including groundwater monitoring wells, test wells, and recovery wells. Section 
320.6(b)(8), (9), and (10), which require the assessment reports to address 
permit violations for municipal, industrial, and stormwater permits, have been 
amended to require the assessment reports to address only water quality related 
permit violations. A requirement for an inventory or water rights permits has 
been added as (b)(11). The previous (b)(11), as published in the proposed text, 
relating to an inventory of solid waste management facilities and superfund 
sites, has been renumbered as (b)(12). The remaining elements (b)(12)-(25), as 
published in the proposed text, have been renumbered as (b)(13)-(26). Subsection 
(b)(7)(a), relating to steering committees, is adopted with one change to the 
proposed text. The word "entities" has been added to the list of entities which 
the steering committees shall comprise.
New sec.320.1 states the purposes of sec.sec.320.1-320.9. The primary purpose of 
new sec.sec.320.1-320.9 is to set up a program to assess historical, existing, 
and projected water quality conditions in order to meet the goals of maintaining 
and improving the quality of the state's water resources. Additionally, 
sec.320.1 provides that the regional assessment program is designed to allow 
citizens and private organizations an opportunity for involvement in protecting 
the state's water resources. New sec.320.1 also provides that it is not the 
intent of the new sections to require river authorities and designated local 
governments to reproduce information already contained in the files of the 
commission but that the performance of a meaningful water quality assessment may 
require existing information to be compiled in a format that will allow for a 
comprehensive evaluation of the information. The purpose statement in 320.1 also 
provides that it is the intent of these sections that the fees collected under 
Chapter 320 recover no more than the actual costs incurred by river authorities 
and designated local governments in administering the new water quality 
management programs. In addition, sec.320.1 states that revenue generated by the 
program described in  sec.sec.320.1-320.9 shall not be used by river authorities 
and designated local governments to fund their existing programs. Finally, new 
sec.320.1 provides that the commission shall ensure that water users and 
wastewater dischargers do not pay excessive amounts; and that no municipality 
shall be assessed costs for any efforts that duplicate water quality management 
activities carried out pursuant to the Texas Water Code, sec.26.177 or rules 
implementing that section.
New sec.320.2 provides that the adopted sections apply to water in the state and 
that the assessments shall be conducted by river authorities, local governments 
designated by the commission, and the commission.
New sec.320.3 is a list of definitions and abbreviations of terms to be used in 
the new sections.
New sec.320.4 provides an overview of the adopted sections and states that 
biennial assessment reports shall be prepared and provided to the governor, 
commission, and Texas Parks and Wildlife. New sec.320.4 also provides for the 
creation of steering committees to assist in the development of the assessment 
reports. This section also provides that a meaningful public input process must 
be established.
New sec.320.5 describes the procedure to be followed in conducting the regional 
assessments. This section provides that a work plan shall be prepared setting 
forth in detail how the river authority or designated local government proposes 
to develop the assessment as required by this chapter. This section also 
provides that biennial assessment reports shall be prepared which shall present 
in a comprehensive format the results of the biennial regional assessments of 
water quality. The reports shall address significant water quality problems 
facing the watershed. Additionally, the reports shall focus on projected water 
quality conditions. The assessment reports shall be prepared in accordance with 
these rules. It is contemplated by these rules that the amount of detail in each 
biennial report will vary according to the time allowed for preparation, the 
resources available, the complexity of the issues facing the watershed, and the 
amount of input received by the river authority or designated local government 
from other local governments and individuals.
New sec.320.6 sets out the specific elements to be addressed in the assessment 
reports and provides that the elements shall be evaluated and the reports 
organized by segments. This section provides that the following elements shall 
be discussed or provided in the reports: historic and current water quality 
monitoring data, measures taken by river authorities, cities, and others to 
promote public awareness of water quality issues and the opportunity for public 
involvement in water quality issues, existing population figures for political 
subdivisions, basin-wide surface water baseline map, basin-wide groundwater 
baseline map, identification and evaluation of wells which could lead to 
pollution of water in the state, an inventory of permitted municipal and 
industrial wastewater disposal activities, an inventory of stormwater permits, 
an inventory of water rights permits, an inventory of solid waste management 
facilities and superfund sites, an inventory by segment of aboveground storage 
tanks and petroleum underground storage tanks, identification and evaluation of 
on-site disposal facilities which could lead to pollution of water in the state, 
identification of existing or potential water quality problems caused by toxic 
materials that could adversely impact human health, aquatic life, wildlife, or 
livestock, an evaluation of the sources of toxic substances which contribute to 
each water quality problem identified, depiction on a county baseline map the 
waters impacted by toxic materials and identification of the possible sources of 
pollution and source if known, an evaluation of the health and integrity of 
aquatic life, sources of significant nonpoint source pollution, identification 
and documentation of existing or potential water quality problems or impediments 
to uses caused by excessive growth of aquatic vegetation, identification and 
documentation of existing or potential water quality problems, existing and 
proposed methods for collection and disposal of household waste, pesticides, and 
toxic agricultural products, issues or instances where enforcement of water 
quality regulations by federal, state or local governments is inadequate or has 
failed to correct water quality problems, identification of water quality issues 
not adequately addressed as a result of the lack of authority on the part of 
state, or local governments, or which may be adequately addressed if Texas Water 
Commission authority could be delegated, federal, state, and local programs 
and/or actions that are attempting to respond to identified water quality 
problems, any other water quality problems not previously identified, a brief 
narrative discussing those waterbodies that are of water quality concern, a 
description of possible solutions and estimated costs to implement such 
solutions, a prioritization of waters with existing or potential water quality 
problems, a bibliography of previous water quality studies performed in the 
watershed, a description of goals and objectives that encourage, assist, and 
promote water conservation measures and water conservation management plans, and 
a discussion of existing water conservation programs and any measures taken by 
river authorities and local governments to implement water conservation 
programs.
New sec.320.7 provides that river authorities and designated local governments 
shall create steering committees to assist in the development of the assessment 
reports and that the committees shall reflect a diversity of interests including 
representatives from appropriate state agencies, political subdivisions, other 
governmental bodies, and individuals or entities with an expressed interest in 
water quality matters within each watershed.
New sec.320.8 provides that local governments shall assist the river authority 
or designated local government within the watershed in conducting the regional 
assessment by providing data and other relevant water quality information that 
pertains to the watershed.
New sec.320.9 provides that the role of the steering committee is advisory in 
nature and that all agencies and organizations required to participate in the 
regional assessment shall provide available relevant water quality data to the 
river authorities, designated local governments, local governments, or Texas 
Water Commission, as appropriate.
The commission received public comments from Texas Utilities Services, Inc.; Red 
River Authority of Texas; Lavaca-Navidad River Authority; Mobil Oil Corporation, 
Beaumont, Texas Refinery; Lower Colorado River Authority; and North Central 
Texas Council of Governments.
One commenter suggested that he/she would like the commission to establish a 
format whereby all information obtained from the commission (as required under 
the regional assessment program) be provided in a format acceptable for 
inclusion in the assessment reports. The commission responds that, to the 
greatest extent practicable, any information supplied by the commission will be 
provided in a format acceptable for inclusion in the assessment reports. This 
commenter also stated that the assessment report elements which require 
submission of information regarding permit violations for industrial, municipal, 
and stormwater permits, will require the submission of non-water quality related 
permit violations, and thus, requires information which is not necessary for the 
performance of a water quality assessment. The commission agrees with this 
suggestion and has modified the requirements in sec.sec.320.6(b)(8), (9), and 
(10) relating to the reporting of permit violations to require only water 
quality related permit violations. This commenter also stated that the rules 
should be amended to allow industrial permittees to participate in the steering 
committees. The commission agrees with this suggestion and has added the word 
"entity" to the provision regarding steering committees members. This entity 
also suggested that the commission provide notice of the availability of the 
draft assessment reports to facilitate the correction of any errors before the 
final report is prepared. The commission agrees with this suggestion and will 
try and work with the various committees to distribute the draft reports.
Other entities provided several comments in question form. Their concerns relate 
to the degree of protection, if any, the commission will afford to the entities 
performing the assessments as it relates to citizen monitoring programs 
encouraged under sec.320.6(b)(1) of these rules. The commission responds that 
these rules do not establish a citizen monitoring program, but rather, they 
require river authorities and designated local governments to promote citizen 
monitoring activities. Any concern about liability as it relates to citizen 
monitoring programs should be addressed at the time the contracts for the 
monitoring programs are prepared. These commenters also asked whether an 
official set of population projections will be available from the Texas Water 
Development Board for use in the 1992 assessment report. The commission responds 
that it will provide the most recent population information available for use in 
the assessment reports. These commenters raised some specific questions with 
regard to the mapping requirement for industrial and municipal wastewater 
discharge activities. These commenters asked whether the latitude and longitude 
coordinates that will be supplied by the commission will have to be checked for 
accuracy. Additionally, these commenters asked how the coordinates will be 
expressed. These entities also raised a question regarding how much of the 
commission's surface water monitoring spreadsheet data should be placed into 
Ascii files. This question relates to sec.sec.320.6(b)(16)-(18), which require 
an identification and evaluation of water quality problems caused by such things 
as toxic materials, nonpoint source pollution, and excessive growth of aquatic 
vegetation. These commenters also asked how the location of certain facilities, 
as described in sec. sec.320.6(b)(16)-(18), should be expressed, and whether a 
survey of the sites is required. With regard to the three previous comments, the 
commission responds that these concerns will be addressed in the guidance 
documents, workshops, and other training programs set up to assist river 
authorities and other entities in performing the assessments. The same 
commenters also inquired about plans and schedules required for certain elements 
in the rules, and whether the commission is going to supply any or all of the 
data for elements in sec.sec.320.6(b)(7), (11), (13), and (14). The commission 
responds that the schedules for submittal of work plans and assessment reports 
are clearly set out in the rules. Any other plans or schedules associated with 
this program will be established on an individual watershed basis in 
consultation with the commission staff. These entities also asked whether the 
commission will issue guidelines which address the problems mentioned in these 
comments. The commission responds that specific details regarding how the 
program will be implemented will be addressed in the workshops, guidance 
documents, and other training programs set up to assist river authorities and 
designated local governments in performing the assessments.
One commenter asked how long the collected data should be archived. The 
commission responds that this type of decision will be 1 the entities performing 
the assessments. The commission believes that historical information should be 
archived for as long as it is relevant to the analys 27>is and evaluation of 
water quality.
One commenter stated that it anticipates that wastewater dischargers and other 
types of facilities may be called upon to submit data necessary for preparation 
of the assessment reports. For this reason, this commenter recommended that the 
policy statement contained in sec.320.1 regarding avoidance of duplication of 
efforts be extended to members of the regulated community affected by the 
assessments. The commission agrees with this comment and has modified the 
purpose statement accordingly. This commenter also recommended that 
sec.320.6(b)(7), which requires an identification of wells, be modified to 
exclude active and properly plugged wells, including groundwater monitoring 
wells, test wells, and recovery wells. The commission agrees with this comment 
and has modified sec.320.6(b)(7) accordingly. This commenter stated that 
sec.320. 6(b)(12)(E), which requires identification of ASTs and USTs not 
registered by the commission, be modified to apply only to tanks which are 
regulated by the commission. The commission responds that this concern has 
already been addressed in sec.320.6(b)(13) of this chapter which only requires 
information on tanks which are regulated by the commission. This commenter also 
recommended that sec.320.9, relating to responsibilities of steering committee 
members, should provide a more comprehensive description of responsibilities of 
committee members, including responsibilities of members who are on the steering 
committee because they have an expressed interest in water quality matters 
within the watershed. The commission responds that these particular types of 
issues will be addressed on an individual watershed basis.
Another commenter requested that the commission add an element to the regional 
assessment program which would address water rights in the same format as other 
inventories of permitted uses such as municipal discharges. The commission 
agrees with this recommendation and has added an element requiring an inventory 
of water rights permits. (New sec.320.6(b)(11)).
Another commenter requested that designated regional councils be included as 
local entities which may be designated to perform the regional assessments. 
Similarly, this commenter requested that regional councils be added to the list 
of entities to be included in the steering committees. The commission responds 
that Senate Bill 818 establishes that river authorities, the commission, and 
local governments are authorized to perform the assessments. Where necessary, a 
regional council, if considered to be a local government, and if designated by 
the commission, may be authorized to perform an assessment. These rules track 
that language. The commission believes that adding the word "entity" to the 
provision regarding steering committee members should address the second concern 
of this commmenter.
The new sections are adopted under the Texas Water Code,  sec.5.103, sec.5.105, 
and sec.26.011, which provides the Texas Water Commission with the authority to 
adopt rules necessary to carry out its powers and duties under the code and all 
other laws of the State of Texas and to establish and approve all general 
policies of the commission.
sec.320.1. Purpose.
(a) The purpose of this chapter is to assess historical, existing, and projected 
water quality conditions in order to meet the goals of maintaining and improving 
the quality of the state's water resources. Regional assessments of water 
quality shall be conducted pursuant to this chapter to provide the commission, 
river authorities, and local governments with sufficient information to take 
appropriate corrective action necessary to meet these goals. The intent of 
developing water quality assessments in each watershed is to identify water 
quality problem areas and to focus resources and future studies on these areas. 
The commission has the responsibility of ensuring that a comprehensive 
assessment of water quality is conducted for each watershed in the state. 
Whenever feasible, the assessments will be the result of a cooperative 
partnership between river authorities, designated local governments, other 
political subdivisions, other state agencies, and the Texas Water Commission. 
The assessments will be conducted in a manner which avoids duplication of 
efforts among river authorities, the Texas Water Commission, other state 
agencies, local governments, other political subdivisions, and regulated 
entities. This program will be implemented in two phases, with the first phase 
focusing on information gathering, and the second phase requiring an evaluation 
and analysis of the information collected. Additionally, the regional assessment 
program is designed to allow citizens and private organizations an opportunity 
for involvement in protecting the state's water resources. It is not the intent 
of these rules to require river authorities and designated local governments to 
reproduce information already contained in the files of the commission, however, 
the performance of a meaningful water quality assessment may require existing 
information to be compiled in a format which will allow for a comprehensive 
evaluation of the information.
(b) It is the intent of these rules that the fees collected under this chapter 
recover no more than the actual costs of administering the new water quality 
management programs incurred by river authorities, designated local governments 
or the Texas Water Commission. Revenue generated by this chapter shall not be 
used by river authorities and designated local governments, to fund their 
existing programs. The commission shall ensure that water users and wastewater 
dischargers do not pay excessive amounts; and that no municipality shall be 
assessed cost for any efforts that duplicate water quality management activities 
carried out pursuant to the Texas Water Code, sec.26.177, or rules implementing 
that section.
sec.320.3. Definitions and Abbreviations.
(a) Definitions. The following words and terms, when used in this chapter, shall 
have the following meanings, unless the context clearly indicates otherwise.
(1)  Aboveground storage tank-As defined in 31 Texas Administrative Code (TAC) 
sec.334.122(b)(1) of this title (relating to Definitions).
(2) Aquatic life-An indigenous species of aquatic or semi-aquatic life or 
wildlife.
(3) Assessment report-A comprehensive record of historical, existing and 
projected water quality conditions of a watershed.
(4) Citizen monitoring-A program conducted by students or other volunteers 
involving the collection, management, and dissemination of environmental 
information.
(5)  County baseline map-State Department of Highways and Public Transportation 
County Map in a digital format depicting site-specific locations in latitude and 
longitude coordinates.
(6) Designated local government-A local government that has been designated 
through cooperative agreement or contract with the commission to perform a 
regional assessment pursuant to this chapter.
(7) Element-A component and constituent of the regional assessment report.
(8) Leaking petroleum storage tank-Those storage tanks which have been assigned 
a leaking petroleum storage tank (LPST) number by the Texas Water Commission.
Human-made or human-induced pollution caused by diffuse sources that are not 
regulated as point sources, resulting in the alteration of the chemical, 
physical, biological, and/or radiological integrity of the water.
(10)  Outfall-A designated outfall pursuant to a commission issued discharge 
permit or NPDES permit.
(11) Permit-Any right or authorization granted by the Texas Water Commission or 
its predecessor agencies, including wastewater disposal permits, water rights 
permits, certificates of adjudication, and certified filings.
(12) Petroleum product-As defined in 31 TAC sec.334.122(b)(12) of this title 
(relating to Definitions).
(13)  Pollution-The alteration of the physical, thermal, chemical, or biological 
quality of, or the contamination of, any water in the state that renders the 
water harmful, detrimental, or injurious to humans, animal life, vegetation, or 
property or to public health, safety, or welfare, or impairs the usefulness or 
the public enjoyment of the water for any lawful or reasonable purpose.
(14) River authority (for purposes of this chapter only) -Any district or 
authority created by the legislature which contains an area within its 
boundaries of 10 or more counties and which is governed by a board of directors 
appointed or designated in whole or in part by the governor, or by the Texas 
Water Development Board, including without limitation the San Antonio River 
Authority, and other river authority or special district created under Article 
III, sec.52, subsection (b)(1) or (2), or Article XVI, sec.59, of the Texas 
Constitution that is designated by rule of the commission to comply with this 
chapter.
(15) River basins and coastal basins-The river basins and coastal basins now 
defined and designated by the Texas Water Development Board as separate units 
for the purposes of water development and inter-watershed transfers, and as they 
are made certain by contour maps on file in the offices of the Texas Water 
Development Board, including, but not limited to, the rivers and their 
tributaries, streams, water, coastal water, sounds, estuaries, bays, lakes and 
portions of them, as well as the lands drained by them.
(16)  Solid waste-As defined in the Texas Solid Waste Disposal Act, sec.361.003, 
as amended, including both municipal solid waste and industrial solid waste as 
those terms are defined in the Texas Solid Waste Disposal Act,sec.361.003, as 
amended.
(17) Stream segment-The term "segment" refers to the surface waters of an 
approved planning area exhibiting common biological, chemical, hydrological, 
natural, and physical characteristics and processes. Segments will normally 
exhibit common reactions to external stresses (e.g., discharge or pollutants). 
Segments are enumerated using a four-digit number. The first two digits identify 
the basin in which the segment is located. The last two digits distinguish the 
segments within a particular river, coastal, or estuarine basin. Boundaries of 
bay and estuarine segments (identified with the Number 24 as the first two 
digits) have not been defined and are illustrated as approximations at this 
time. All designated segments are listed in Appendix A of sec.307.10 of this 
(relating to Appendices A-D).
(18) Stormwater drainage system-Man-made and natural features which function as 
a system to collect, convey, channel, hold, inhibit, retain, detain, infiltrate, 
or divert stormwater runoff.
(19) Surface water-As defined in sec.307.3(a)(38) of this title (relating to 
Definitions and Abbreviations).
(20) Superfund site-Any facilities identified in the State Registry pursuant to 
the Texas Health and Safety Code, sec.361.181 or on the National Priorities List 
pursuant to the Comprehensive Environmental Response Compensation and Liability 
Act, 42 United States Code sec.9601 et seq, as amended.
(21) Toxic materials-Any liquid, gaseous, or solid substance or substances in a 
concentration which, when applied to, discharged to, or deposited in the waters 
in the state, may exert a poisonous effect detrimental to man or to the 
propagation, cultivation, or conservation of animals, fish, or other aquatic 
life.
(22) Unclassified waters-Those waters for which no classification has been 
assigned and which have not been identified in Appendix A of sec.307.10.
(23) Underground storage tank-As defined in sec.334.2 of this title (relating to 
Definitions).
(24) Wetlands-As defined in 31 TAC sec.307.3(a)(45).
(25) Work plan-A document outlining the proposed scope of work, including a time 
schedule and cost expenditures, from the river authority or designated local 
government to perform a service and/or provide a comprehensive regional 
assessment of the watershed.
(b) Abbreviations. The following abbreviations apply to this chapter.
(1) Assessment-Regional assessment of water quality to be performed biennially.
(2)  AST-Aboveground storage tank.
(3) Code-Texas Water Code.
(4) Commission-Texas Water Commission.
(5) CWA-Clean Water Act.
(6) EPA-Environmental Protection Agency.
(7)  LPST-Leaking petroleum storage tank.
(8) NPDES-National pollutant discharge elimination system.
(9) TAC-Texas Administrative Code.
(10) UST-Underground storage tank.
sec.320.6. Elements of Assessment Reports.
(a) General requirements. The assessment reports shall be evaluated and 
organized by stream segment. Unclassified surface waters shall be grouped with 
the first downstream segment in the same watershed. All data and information 
maintained by the commission and pertinent to the completion of this section 
will be assembled by the commission and disseminated to those entities 
conducting regional assessments of water quality as required by this chapter.
(1) Baseline maps shall be either a basin-wide surface water map, a basin-wide 
groundwater map, or county map. If necessary, a larger-scaled map than the 
county baseline map may be used, such as the 7.5 minute (1:24,000 scale) United 
States Geological Survey (USGS) quadrangle series maps.
(2) All assessment report elements, as identified under subsection (b) of this 
section, requiring a site-specific location (e.g., locations of municipal and 
industrial wastewater discharges, superfund sites, etc.) shall be depicted on 
maps with symbols indicating type of assessment element along with a unique 
identification number for the element. The sites' longitudinal and latitudinal 
coordinates with attributes (e.g., latitude, longitude, source map name, source 
scale, and positional reliability estimate- code) sufficient to identify 
individual assessment elements shall be provided in an ASCII flat file format, 
and placed on micro computer disks to be submitted to the commission. These 
files shall be consistent with the commission's computer database software, 
database format, and geographical information system for a suitable importation 
of data.
(b)  Specific elements to be addressed:
(1) a review of historic and current water quality monitoring data, to include 
the following:
(A)  brief description and status of water quality monitoring programs currently 
being conducted by the authority, other political subdivisions and other 
agencies;
(B) evaluation of the capability of existing monitoring programs to adequately 
assess and analyze existing and potential water quality problems in the 
watershed;
(C) specific recommendations for additional monitoring and data management 
needed to conduct future regional assessments;
(D) monitoring plan which describes how the river authority will implement 
recommendations for additional monitoring in coordination with the commission;
(E) brief description of any monitoring to analyze nonpoint source loadings; and
(F) depiction of all existing and proposed monitoring sites on a county baseline 
map or other appropriate map;
(2)  the river authority or designated local government which shall formulate 
goals and objectives that encourage and promote citizen monitoring activities. 
Additionally, the river authority or designated local government shall discuss 
existing citizen monitoring programs and any measures taken by the river 
authority and local government to implement citizen monitoring programs;
(3) any measures taken by river authorities, cities, and others to promote 
public awareness of water quality issues and the opportunity for public 
involvement in water quality issues;
(4) existing population figures for political subdivisions. Sources for 
population may be obtained through the Texas Water Development Board, Texas 
Population Totals/Bureau of the Census, Department of Commerce, Texas Natural 
Resources Information System, and records of political subdivisions within the 
watershed;
(5) a basin-wide surface water baseline map of Texas depicting all segments, 
significant waterways, lakes, reservoirs, wetlands, and significant geographical 
features such as: city and county boundaries, and major roadways in a digital 
format in latitude and longitude coordinates;
(6) a basin-wide groundwater baseline map depicting all minor and major 
aquifers, and significant geographical features such as: city and county 
boundaries, and major roadways in a digital format in latitude and longitude 
coordinates;
(7) an identification and evaluation of wells which could lead to pollution of 
water in the state (e.g., abandoned and/or improperly plugged domestic drinking 
water wells, oil and gas wells, but not active or properly plugged wells, 
including groundwater monitoring wells, test wells, or recovery wells). 
Depiction of the identified well or field location on a county baseline map;
(8) an inventory of permitted municipal wastewater disposal activities by:
(A)  name of permittee and permit number;
(B) date of permit expiration and status of operations, (e.g., active, inactive, 
facility not constructed);
(C) brief description of facility operations (e.g. domestic wastewater treatment 
plant, dairy) and treatment processes;
(D) effluent limits (BOD5/TSS/NH3-N/DO) and any other parameters listed in the 
permit;
(E)  effluent set in lbs/day;
(F) for agricultural facilities, estimated amount of waste produced (solids in 
lbs/day and liquid in gallons/day); maximum number of animals allowed under 
permit;
(G) permitted daily average flow;
(H) number/year of water quality related permit violations based on self-
reporting data; and
(I) depiction of all permitted municipal facilities' discharge points on a 
county baseline map or other appropriate map;
(9) an inventory of permitted industrial wastewater disposal activities by;
(A) name of permittee and permit number;
(B) date of permit expiration and status of operations (e.g., active, inactive, 
facility not constructed);
(C) brief description of facility operations (e.g., steam electric station, 
organic chemical manufacturing plant) and treatment processes (e.g., disposal 
method such as surface water discharge, subsurface disposal or, if land 
disposal, include specific method such as irrigation, evaporation);
(D) effluent limits listed in the permit either in lbs/day or concentration 
based;
(E) permitted daily average flow;
(F)  number/year of water quality related permit violations based on self-
reporting data; and
(G) depiction of all permitted discharge points on a county baseline map or 
other appropriate map;
(10) an inventory of stormwater permits, as defined in the Clean Water Act of 
1987, sec.492(p) (added by the Water Quality Act of 1987, sec.405), 40 Code of 
Federal Regulations Parts 122, 123, and 124, by:
(A) name of permittee and permit number;
(B) date of permit expiration and status of operations, (e.g., active, inactive, 
not constructed);
(C) publicly owned conveyances;
(D) privately owned conveyances;
(E) parameters listed in the permit;
(F) proposed stormwater pollution control;
(G) number/year of water quality related permit violations based on self-
reported data; and
(H) depiction of all permitted stormwater monitoring outfall sites on a county 
baseline map or other appropriate map;
(11) an inventory of water rights permits (as defined in sec.320.3(a) of this 
title (relating to Definitions and Abbreviations)) to include, as applicable:
(A) name of permittee and permit number;
(B) date of permit expiration and status of operations (e.g., active or 
dormant);
(C) authorized diversion rate in gallons per minute or cubic feet per second;
(D) authorized annual use limit in acre-feet per year;
(E)  authorized storage in acre-feet per year;
(F) indication of whether storage is on or off channel;
(G) type of use (e.g., municipal, industrial, irrigation, recreation);
(H) indication of whether permittee is a water supplier. If water rights holder 
is a supplier, list supplier's customers and locations of customers;
(I) depiction of all diversion points on a county baseline map or other 
appropriate map;
(12) an inventory of solid waste management facilities and superfund sites to 
include the following, as applicable:
(A) name of permittee;
(B) hazardous waste permit number;
(C) solid waste registration number;
(D) solid waste management activities conducted at the site; and
(E) depiction of all solid waste management facilities or superfund sites on a 
county baseline map or other appropriate map. Distinguish federal and state 
superfund sites on the county baseline map or other appropriate map;
(13) An inventory by segment of those ASTs and USTs regulated by the Commission 
pursuant to the Texas Water Code, Chapter 26 and the commission rules in 31 TAC 
Chapter 334, including:
(A) total number of ASTs and USTs in each segment;
(B) total number of LPSTs in each segment;
(C) storage tank registration numbers and location by street or other 
identifying address;
(D) LPST registration numbers and location by street or other identifying 
address; and
(E) location by street or identifying address of any known ASTs or USTs not 
registered with the commission;
(14) identification and evaluation of on-site disposal facilities which could 
lead to pollution of water in the state (e.g., surface failure, reported 
complaint regarding on-site disposal facility). Depiction of the identified 
facilities or location of subdivision served by on-site disposal facilities on a 
county baseline map;
(15) identification and documentation of existing or potential water quality 
problems caused by toxic materials that could adversely impact human health, 
aquatic life, wildlife, or livestock; and an evaluation and analysis of the 
sources of toxic substances which contribute to each water quality problem 
identified. Depiction on a county baseline map the waters impacted by toxic 
materials and identification of the contaminant and possible sources of 
pollution if known;
(16) an evaluation and analysis of the health and integrity of aquatic life 
based on sampling data for fish, benthic invertebrates, and any other forms of 
aquatic life which may be of concern; identification of existing or potential 
conditions and sources of pollution which adversely impact aquatic life, and 
identification of threatened or endangered species which could be affected by 
diminished water quality;
(17) sources of significant nonpoint source pollution which shall be discussed 
in the assessment report and depicted on a county baseline map or other 
appropriate map. Land use maps shall be developed for areas where nonpoint 
source pollution has been identified as a threat to water quality. Best 
professional judgment shall be utilized in determining an appropriate scale for 
the land use maps;
(18) identification and documentation of existing or potential water quality 
problems or impediments to uses caused by excessive growth of aquatic 
vegetation, and an evaluation of the factors contributing to the water quality 
problem identified;
(19) identification and documentation of existing or potential water quality 
problems caused by other forms of pollution-such as oxygen-demanding organic 
materials, excessive particulate materials (suspended solids), elevated levels 
of dissolved salts, or elevated levels of bacterial indicators of fecal 
contamination; and an evaluation and analysis of the sources which contribute to 
each water quality problem identified;
(20) an evaluation of existing and proposed methods for collection and disposal 
of household waste, pesticides, and toxic agricultural products in the 
watershed. The river authority or designated local government shall formulate 
basin-wide goals and objectives for use in the watershed to promote and 
encourage the development of such programs. The river authority or designated 
local government shall identify its perceived role in promoting these programs;
(21) identification of issues or instances where enforcement of water quality 
regulations by federal, state, or local governments is inadequate or has failed 
to correct water quality problems. The river authority or designated local 
government shall also identify water quality issues which are not adequately 
addressed as a result of the lack of authority on the part of state or local 
governments or which may be adequately addressed if the commission's authority 
could be delegated. The river authority or designated local government is 
encouraged to suggest possible solutions to any problems identified under this 
subsection, including the need for legislative action;
(22) a description of federal, state, and local programs and/or actions that are 
attempting to respond to identified water quality problems;
(23) any other water quality problems not previously identified pursuant to this 
section of the rule;
(24) the regional assessment report which shall contain a brief narrative 
discussing those waterbodies that are of water quality concern. This should 
include, but not be limited to, the identification of high quality waters as 
well as waterbodies not meeting water quality standards. The regional assessment 
report shall also describe possible solutions to any identified water quality 
concerns and estimated costs to implement such solutions. A prioritization of 
waters with existing or potential water quality problems;
(25) a bibliography of previous water quality studies performed in the 
watershed;
(26) a description of goals and objectives that encourage, assist, and promote 
water conservation measures and water conservation management plans. A 
discussion of existing water conservation programs and any measures taken by 
river authorities and local governments to implement water conservation 
programs.
sec.320.7. Responsibilities of River Authorities and Designated Local 
Governments.
(a) Steering committees. River authorities, designated local governments, and 
the commission shall organize and lead basin-wide steering committees. The 
membership of the steering committees shall reflect a diversity of interests. 
The committees shall be comprised of appropriate state agencies (e.g., Texas 
Parks and Wildlife Department, General Land Office, Texas Department of Health, 
Texas Department of Agriculture, State Department of Highways and Public 
Transportation, Texas Water Commission, Texas Water Development Board, Texas 
State Soil and Water Conservation Board, and Texas Railroad Commission), 
political subdivisions, other governmental bodies, and individuals or entities 
with an expressed interest in water quality matters within each watershed.
(1) Size of committees. The steering committee should not be so small as to be 
unrepresentative, or so large as to become unmanageable. The size of the 
committee should be determined on a case-by-case basis by the complexity of the 
job to be done and the number of interested individuals.
(2) Meetings. A regular schedule of committee meetings should be established as 
soon as possible. Meetings should be held as needed, and should have an agenda. 
River authorities are encouraged to involve the committee in the work plan 
process, as described in sec.320.5 of this title (relating to Assessment Report 
and Work Plans).
(b) Public participation. River authorities, designated local governments, and 
the commission shall develop a public input process that provides for meaningful 
comments and review by private citizens and organizations.
(c)  Designated local governments. Where appropriate, the commission shall 
designate a local government to perform a regional assessment pursuant to this 
chapter. When this designation occurs, the designated local governments shall 
comply with the requirements of this chapter.
(d) General responsibilities. The river authority or designated local government 
shall be responsible for the professional quality, timely completion, and 
coordination of all drawings, maps, assessment reports, and other services 
required to be furnished by the river authority or designated local government 
under this chapter. The commission may require the river authority or designated 
local government to correct or revise any errors, omissions, or other 
deficiencies in any assessment report or services provided by the river 
authority or designated local government to ensure that such assessment reports 
and services fulfill the purposes of this chapter.
(e) Distribution of report. The river authority or designated local government 
shall be responsible for the printing of all assessment reports and maps 
required by this chapter. The river authority or designated local government 
shall provide, at a minimum, 25 copies of each to the commission and shall 
provide sufficient copies for distribution and review under the river 
authority's or designated local government's public participation program and 
steering committee to fulfill the purposes of this chapter.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115418
John Vay
Director, Legal Services Division
Texas Water Commission
Effective date: December 30, 1991
Proposal publication date: November 1, 1991
For further information, please call: (512) 463-8069
       
TITLE 37. PUBLIC SAFETY AND CORRECTIONS
Part VI. Texas Department of Criminal Justice
Chapter 152. General Allocation Rules
Subchapter A. Institutional Division Admissions
37 TAC sec.152.7
The Texas Department of Criminal Justice adopts the repeal of 37 TAC sec.152. 7 
concerning allocation formula community effort factors, without changes to the 
proposed text as published in the October 8, 1991, issue of the Texas Register 
(16 TexReg 5562).
This repeal deletes surplasage in the language of the allocation formula rules 
which resulted when the contents of sec.152.7 were incorporated into sec.152. 3 
by amendments adopted by the Texas Department of Criminal Justice Board in the 
final rule published in the September 24, 1991, issue of the Texas Register (16 
TexReg 5261).
No comments were received regarding adoption of the repeal.
The repeal is adopted under the Texas Government Code, Article 499.071(c), which 
provides the board of the Texas Department of Criminal Justice.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 5, 1991.
TRD-9115288
Jackee Cox
General Counsel
Texas Department of Criminal Justice
Effective date: December 26, 1991
Proposal publication date: October 8, 1991
For further information, please call: (512) 463-9988
       
Part IX. Commission on Jail Standards
Chapter 273. Medical Services in County Jails
37 TAC sec.273.5
The Texas Commission on Jail Standards adopts an amendment to sec.273.5, without 
changes to the proposed text as published in the October 25, 1991, issue of the 
Texas Register (16 TexReg 6041).
The amendment allows sufficient time for each sheriff to develop a suicide 
prevention plan using the Suicide Prevention Plan Development Guide. The 
Development Guide was approved by the commission on November 20, 1991, at a 
regular meeting of the commission.
The amendment will extend the date by which Suicide Prevention Plans must be 
filed with the commission from June 1, 1991, to December 31, 1991.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Government Code, Chapter 511, which provides 
the Texas Commission on Jail Standards with the authority to adopt reasonable 
rules and procedures establishing minimum standards for the construction, 
equipment, maintenance, and operation for county jails.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on November 20, 1991.
TRD-9115214
Jack E. Crump
Executive Director
Texas Commission on Jail Standards
Effective date: December 26, 1991
Proposal publication date: October 25, 1991
For further information, please call: (512) 463-5505
       
TITLE 40. SOCIAL SERVICES AND ASSISTANCE
Part I. Texas Department of Human Services
Chapter 48. Community Care for Aged and Disabled
Waiver Program for Medically Dependent Children
40 TAC sec.48.2501
The Texas Department of Human Services (DHS) adopts an amendment to sec.48. 
2501, concerning client eligibility criteria, without changes to the proposed 
text as published in the November 1, 1991, issue of the Texas Register (16 Tex 
Reg 6204).
Justification for the amendment is to allow clients' families and DHS to 
maximize the insurance benefits.
The amendment will function by allowing clients with limited in-home nursing 
care insurance to participate in the program if the insurance company is billed 
first, and the Waiver Program for Medically Dependent Children, as a Medicaid 
waiver program, is billed for the balance of the nursing hours needed according 
to the physician plan of care.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 
and 32, which authorizes the department to administer public and medical 
assistance programs.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 5, 1991.
TRD-9115269
Nancy Murphy
Agency liaison, Policy and Document Support
Texas Department of Human Services
Effective date: January 8, 1992
Proposal publication date: November 1, 1991
For further information, please call:(512) 450-3765
       
 State Board of Insurance Exempt Filing 
Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L
(Editor's note: As required by the Insurance Code, Article 5.96 and Article 
5.97, the Register publishes notices of actions taken by the State Board of 
Insurance pursuant to Chapter 5, Subchapter L, of the Code. Board action taken 
under these articles is not subject to the Administrative Procedure and Texas 
Register Act.
These actions become effective 15 days after the date of publication or on a 
later specified date.
The text of the material being adopted will not be published, but may be 
examined in the offices of the State Board of Insurance, 333 Guadalupe, Austin.)
The Texas Department of Insurance has adopted a filing by Capital Guaranty 
Insurance Company of a Good Faith Deposit Financial Surety Bond Program, Form 
and Rate Filing.
In accordance with the provisions of the Insurance Code, Artitle 5.97, a text of 
the proposed filing has been filed in the office of the chief clerk of the Texas 
Department of Insurance. The proposed filing has been available for public 
inspection for 15 days and a public hearing was not requested by any party.
The Good Faith Deposit Financial Surety Bond Program, known as Sure-Bid, is 
designed to allow securities underwriters to purchase a bond, in lieu of making 
a good faith deposit, for bidding on a political subdivision's bond issue. The 
bond guarantees the successful bidder will upon winning the bid, deposit with 
the issuer or its financial advisory, a good faith check or wire transfer the 
good faith deposit. The good faith deposit usually equals 1.0% to 2.0% of the 
bond issue's par value. The program allows for an unspecified number of 
competing securities underwriter to be covered under one bond for each bid. The 
bond is non-cancellable.
The proposed rates for this bond are judgemental and range from $20 (minimum 
premium) to $600 based on the amount of the good faith deposit. The premium 
charge is for each securities underwriter listed on the bond.
This filing becomes effective on the 15th day after notice of this action is 
published in the Texas Register. This notice is filed pursuant to the Insurance 
Code, Article 5.97, which exempts it form the requirements of the Administrative 
Procedure and Texas Register Act.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115420
Linda von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 28, 1991
For further information, please call: (512) 463-6328
       
The Texas Department of Insurance has adopted a filing by Texas Department of 
Transportation, Division of Motor Vehicle Titles and Registration, of a revised 
motor vehicle dealer's surety bond form.
In accordance with the provisions of the Insurance Code, Article 5.97, a text of 
the proposed filing has been filed in the Office of the Chief Clerk of the Texas 
Department of Insurance. The proposed filing has been available for public 
inspection for 15 days and a public hearing was not requested by any party.
House Bill 1941, passed by the 72nd Texas Legislature, 1991, amends Texas Civil 
Statutes, 6686. Article 6686 requires persons seeking to engage in the business 
of buying, selling, or exchanging motor vehicles, to obtain a general 
distinguish number from the Texas Department of Transportation (department). A 
condition precedent to the department's issuance of a general distinguishing 
number is that the applicant provide a surety bond which guarantees that the 
applicant will pay all valid bank drafts drawn for the purchase of motor 
vehicles and that the applicant will transfer good title to each motor vehicles 
that it offers for sale.
House Bill 1931 amends the applicant's guarantee to include coverage for checks. 
The bond form has been revised to guarantee payment of "all valid bank drafts 
including checks..." (New language in italics).
The motor vehicle dealer's surety bond has also been revised to clarify that 
each bond constitutes a new and separate obligation for each year that the bond 
remains in force. This amendment was proposed by the department to address 
concerns that the current language may be ambiguous regarding a surety's 
liability.
This filing becomes effective on the 15th day after notice of this action is 
published in the Texas Register . This notice is filed pursuant to the Insurance 
Code, Article 5.97, which exempts it form the requirements of the Administrative 
Procedure and Texas Register Act.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115422
Linda von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 28, 1991
For further information, please call: (512) 463-6328
       
The Texas Department of Insurance has adopted a filing by Texas Education Agency 
(TEA) of two driver training school bonds; one for $10,000 and the other for 
$5,000 along with continuation agreements for each bond.
In accordance with the provisions of the Insurance Code, Article 5.97, a text of 
the proposed filing has been filed in the office of the chief clerk of the Texas 
Department of Insurance. The proposed filing has been available for public 
inspection for 15 days and a public hearing was not requested by any party.
Senate Bill 757 as passed by the Legislature a signed into law by the governor 
revised Texas Civil Statutes, Article 4413(29c). The effective date of the new 
law was September 1, 1991. Section 13(g) was added to Article 4413(29c) and 
requires a driver training school to submit a bond as a condition for being 
licensed by TEA.
A bond in the amount of $10,000 is required of a school that teaches driver 
education with all other schools; i.e., defensive driving, having a bond in the 
amount of $5,000. The bonds are identical in form other than the bond amount. 
The continuation agreement or bond may be used for each renewal application 
filed with TEA. The bonds are conditioned on the licensee faithfully discharging 
all obligations, duties, and responsibilities contained in sec.13(a), (g), (h), 
sec.9, and all other applicable sections of Texas Civil Statutes, Article 
4413(29c).
The bonds may be cancelled by giving 30 days written notice, by registered mail.
The rates for these bonds must be filed by the insurer with the Texas Department 
of Insurance for approval prior to use.
This filing becomes effective on the 15th day after notice of this action is 
published in the Texas Register.  This notice is filed pursuant to  the 
Insurance Code, Article 5.97, which exempts it form the requirements of the 
Administrative Procedure and Texas Register Act.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115421
Linda von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 28, 1991
For further information, please call: (512) 463-6328
       
The Texas Department of Insurance has adopted a filing by Railroad Commission of 
Texas (commission) of a blanket performance bond form and an individual 
performance bond form.
In accordance with the provisions of the Insurance Code, Article 5.97, a text of 
the proposed filing has been filed in the Office of the Chief Clerk of the Texas 
Department of Insurance. The proposed filing has been available for public 
inspection for 15 days and a public hearing was not requested by any party.
Senate Bill 1103, as passed by the 72nd Legislature and signed into law by the 
governor amended the Texas Natural Resources Code (TNRC), sec.91.103 and 
sec.91.104, which went into effect September 1, 1991. Changes in the TNRC allows 
for a blanket performance bond to be submitted to cover all commission-regulated 
operations performed by a person, including all current wells and any additional 
wells that are obtained and carried on the oil and gas proration schedule. Only 
one blanket performance bond is required of persons performing multiple 
operations. "Other Commission-regulated operations," other than the operation of 
active and inactive wells, are listed on the commission's instruction sheet for 
the individual and blanket performance bonds.
The penal amount for the blanket performance bond will be based on the 
following: a person who operates 10 or fewer wells or performs other operations 
shall file a $25,000 blanket bond; a person operates more than 10 but fewer than 
100 wells shall file a $50,000 blanket bond; a person who operates 100 or more 
wells shall file a $250,000 blanket bond.
The individual performance bond is conditioned on the persons operating oil and 
gas wells in compliance with TNRC, sec.91.103 and sec.91.104 on all active and 
inactive wells, to prevent pollution of any ground or surface water in the 
state, or any controlled escape of fluids from the strata in which they were 
originally located. This bond is intended for persons who operate a small number 
of shallow wells. The penal amount for the individual performance bond will be 
based on $2.00 for each foot of well depth for each well.
The rate for those bond must be filed by the insurer with the Texas Department 
of Insurance for approval prior to use.
This filing becomes effective on the 15th day after notice of this action is 
published in the Texas Register . This notice is filed pursuant to the Insurance 
Code, Article 5.97, which exempts it form the requirements of the Administrative 
Procedure and Texas Register Act.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 9, 1991.
TRD-9115419
Linda von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 28, 1991
For further information, please call: (512) 463-6328
       
The Texas Department of Insurance in an open meeting on November 21, 1991, 
adopted amendments to Parts One and Two and associated retrospective 
endorsements and notice of election forms in the Texas Retrospective Rating Plan 
Manual pertaining to the Large Risk Alternative Rating Option and a Residual 
Market Factor applicable to workers' compensation policies written on a 
retrospectively rated basis.
The amendments to Part One pertain to the Large Risk Alternative Rating Option 
and indicate that the only allowable method for collecting the applicable Texas 
Workers' Compensation (WC) Residual Market Premium (RMP) shall be the Texas WC 
Residual Market Factor (RMF) determined in accordance with Part Two Section 
I.B.8. The amendments to Part One also indicate that residual market costs 
cannot be included in any other rating plan factors negotiated between the 
carrier and the insured. However, the RMF used in all retrospective premium 
adjustments shall not exceed the actual RMF that is determined by the State 
Board of Insurance (SBI). Any amount of RMPO in excess of the actual RMP as 
produced by applying the RMF determined by the SBI shall be refunded to the 
insured. The eligibility requirements for the Large Risk Alternative Rating 
Option make this option available for risks with either an estimated annual 
workers' compensation standard premium in excess of $350,000 in all states 
subject to interstate retrospective rating or an estimated annual workers' 
compensation standard premium in excess of $100,000 on an intrastate basis.
The amendments to Part Two indicate that for insureds written under any 
retrospective rating plan, the residual market premium shall be added to the 
retrospective premium calculated in accordance with the formula set forth in the 
rule. The actual RMF as determined by the SBI shall be calculated for policies 
effect during a calendar year in accordance with the following formula: 1 - Z x 
(Actual Assessed Texas WC Residual Market Deficit for the Accident Year/Total 
Assessable Texas W.C. Voluntary Written Premium for the year to which the 
Deficit Relates), where Z is the percentage of Basic Premium to Total Retro 
Premium. The RMF for the accident year will be updated annually by the State 
Board for four years to reflect any change in the assessments levied for that 
accident year.
The RMF which applicable to the first retrospective premium adjustment shall be 
updated annually through the fourth retrospective premium adjustment, provided 
the retrospective plan remains open, to reflect any change in the assessments 
levied for that accident year. The RMF at fourth adjustment shall apply to all 
subsequent retrospective premium adjustments, if any, until the plan is 
finalized. For each annual period in a three year plan or Long Term Construction 
Project plan, the RMF shall apply separately. The RMF at the fourth adjustment 
which is applicable to each such annual period shall apply until plan is 
finalized.
The amended rules, endorsements and forms are applicable to retrospective rating 
plans made effective on and after 12:01 a.m., December 31, 1991.
The Board adopted the amended rules, endorsements and forms under the authority 
and jurisdiction of the Insurance Code, Articles 5.55 through 5.68-1, 5.77, 
5.78, 5.79 and 5.96.
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on December 6, 1991.
TRD-9115390
Linda von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Effective date: December 28, 1991
For further information, please call: (512) 463-6328