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 X. Department of Information Resources Chapter 201. Planning and Management of Information Resource Technologies 1 TAC sec.201.11 The Department of Information Resources adopts new sec.201.11, concerning procedure for adoption of information resources standards and policies, without changes to the proposed text as published in the April 10, 1992, issue of the Texas Register (17 TexReg 2565). The new section defines preparation of proposed standards and policies, the use of advisory committees, acceptance of public comment either in writing or in public hearings before adoption by the board, amendment by the board, and the continuation of existing standards and policies. The new section establishes the procedures to be used by the department and the associated rules of state agencies and the public at large in the development and adoption of statewide information resource standards and policies. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 4413(32j)9(d) , which provide the Department of Information Resources with the authority to adopt rules as necessary to establish policies, procedures, and standards relating to information resources management by state agencies. 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 June 19, 1992. TRD-9208589 Ann S. Fuelberg Executive Director Department of Information Resources Effective date: July 13, 1992 Proposal publication date: April 10, 1992 For further information, please call: (512) 475-4714 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 5. Property and Casualty Insurance Subchapter E. Texas Catastrophe Property Insurance Association Plan of Operation 28 TAC sec.5.4001 The State Board of Insurance of the Texas Department of Insurance, adopts amendment to sec.5.4001, concerning the plan of operation, without changes to the proposed text as published in the April 17, 1992, issue of the Texas Register (17 TexReg 2671). The section adopts the plan of operation of the Texas Catastrophe Property Insurance Association (TCPIA), which is amended to incorporate a change to the plan of operation to provide a new provision concerning the submission of an application for new or increased coverage to the TCPIA for acceptance of the application on the date mailed. The amendment allows an application for new or increased coverage to be submitted to the TCPIA and the coverage to become effective on the date mailed if sent by regular mail that is hand cancelled by the United States Postal Service. This will allow coverage to be provided in an expedited manner and be effective immediately in the event of a storm. No comments were received regarding adoption of the amendment. The amendment is adopted under the Insurance Code, Articles 21.49 and 1.04, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The Insurance Code, Article 21.49, sec.5(c), which requires the State Board of Insurance to adopt the plan of operation of the Texas Catastrophe Property Insurance Association or any amendment thereto. Article 1.04(b) authorizes the board to determine rules in accordance with the laws of this state. Texas Civil Statutes, Article 6252- 13a, sec.4 and sec.5 authorize and require each state agency to adopt rules of practice setting forth the nature and requirement of available procedures, and prescribe the procedures for adoption of rules by a state administrative agency. The adopted amendment affects regulation of the Texas Catastrophe Property Insurance Association under the Insurance Code, Article 21.49. 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 June 18, 1992. TRD-9208509 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: July 9, 1992 Proposal publication date: April 17, 1992 For further information, please call: (512) 463-6327 28 TAC sec.5.4201 The State Board of Insurance of the Texas Department of Insurance adopts an amendment to sec.5.4201, concerning standard Texas catastrophe property insurance association forms-windstorm and hail; without changes to the proposed text published in the April 17, 1992, issue of the Texas Register (17 TexReg 2671). Section 5.4201 adopts by reference standard policy forms for windstorm and hail insurance. The amendment is necessary to withdraw the Texas Catastrophe Property Insurance Association (TCPIA) Form Number 560, Beach Area Percentage Deductible Clause, from use in connection with a TCPIA policy. The beach area deductible will no longer be an available deductible option for attachment to a TCPIA policy since the removal of the defined beach area eliminates the need to have a specific deductible endorsement available for the beach area. The amendment withdraws the TCPIA Form Number 560, Beach Area Percentage Deductible Clause, since the form will no longer be available for use with a TCPIA policy. No Comments were received regarding adoption of the amendment. The amendment is adopted under the Insurance Code, Articles 21.49 and 1.04, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The Insurance Code, Article 21.49, sec.8, which authorizes the State Board of Insurance to approve policy forms and endorsements for the Texas Catastrophe Property Insurance Association. Article 1.04(b) authorizes the Board to determine rules in accordance with the laws of this state. Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5, authorize and require each state agency to adopt rules of practice setting forth the nature and requirement of available procedures, and prescribe the procedures for adoption of rules by a state administrative agency. The adopted amendment effects regulation of the Texas Catastrophe Property Insurance Association under the Insurance Code, Article 21.49. 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 June 18, 1992. TRD-9208511 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: July 9, 1992 Proposal publication date: April 17, 1992 For further information, please call: (512) 463-6327 Manual 28 TAC sec.5.4501 The State Board of Insurance of the Texas Department of Insurance adopts an amendment to sec.5.4501, concerning property and casualty, without changes to the proposed text as published in the April 17, 1992, issue of the Texas Register (17 TexReg 2672). However, the material adopted by reference in the rule has been changed upon adoption. Section 5.4501 adopts by reference the Texas Catastrophe Property Insurance Association (TCPIA) Rules Manual, which is amended to reflect new deductible options that produce equity for all insureds by eliminating a distinction between deductibles applicable to property located in the beach area and property located in the coastal area and introduces deductibles that are applicable to all property regardless of the location. The new deductibles are based on rates approved by the board for use on property insured by the Texas Catastrophe Property Insurance Association. In addition, the manual is amended to provide that new methods on application for new or increased coverage can be submitted to the TCPIA for acceptance on the date mailed and includes a method for mailing an application by United States Postal Service Express Mail that was previously adopted in the TCPIA plan of operation under 28 TAC sec.5. 4001, but was never included in the TCPIA manual. These methods of forwarding an application for coverage through the TCPIA allow insureds to have immediate coverage should there be an impending storm. The amendment changes the deductible rules in the TCPIA manual to allow property insured by the TCPIA to be subject to the same deductible options regardless of the location of the property. The new deductible will be a 1.0% deductible for dwelling property with a buy back to a $250 deductible or a $100 deductible, and a $100 deductible for commercial property with optional higher deductibles available for a rate credit. These deductible options are reflective of the rates approved by the board for use with property insured by the TCPIA and will not require further rate adjustments to reflect these deductible changes. In addition, the amendment allows an application for new or increased coverage to be effective on the date mailed if sent by regular mail that is hand cancelled by the United States Postal Service or be effective on the date mailed if sent by United States Postal Service Express Mail, which was a method previously adopted by the board under rule 28 TAC sec.5.4001, but was never included in the manual. No comments were received regarding adoption of the amendment. The staff of the Texas Department of Insurance has included an amendment to the rules contained in the TCPIA manual to clearly indicate the rates adopted by the board for dwelling property located in the first tier of counties are based on a 1.0% deductible with the minimum deductible applicable to dwelling property being $100. In addition, the rule which allows an option to buy back to a $250 deductible is amended to clarify that a buy back to a $100 deductible is also allowed. It was clearly the board's intent that the 1.0%, $250, and $100 deductible options currently available continue to be available for all properties. The purpose of amending deductible rules was to equalize the treatment of all insureds, not to eliminate available deductible options. The board agrees with the recommended changes by staff that the deductible option of $100 for dwellings previously available was intended to be a deductible option for dwellings. The intent of the board was to provide equity for all insureds by making the same deductible options for dwellings available to all insureds. The amendment is adopted under the Insurance Code, Articles 21.49 and 1.04, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The Insurance Code, Article 21.49, sec.8, which authorizes the State Board of Insurance to approve manuals of classifications, rules, and rates for the TCPIA. Article 1.04(b) authorizes the board to determine rules in accordance with the laws of this state. Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5, authorize and require each state agency to adopt rules of practice setting forth the nature and requirement of available procedures, and prescribe the procedures for adoption of rules by a state agency. The adopted amendment affects regulation of TCPIA under the Insurance Code, Article 21.49. sec.5.4501. Rules and Regulations for Texas Catastrophe Property Insurance Association (association). The Texas Department of Insurance adopts by reference a rules manual for the association, as amended effective June 1, 1992. Copies of the rules manual may be obtained by contacting the Property/Casualty Division, Mail Code 103-1A, Texas Department of Insurance, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104. 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 June 18, 1992. TRD-9208510 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: July 9, 1992 Proposal publication date: April 17, 1992 For further information, please call: (512) 463-6327 TITLE 31. NATURAL RESOURCES AND CONSERVATION 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, with changes to the proposed text as published in the January 28, 1992, issue of the Texas Register (17 TexReg 618). The amendment will insure that the definitions within Chapter 101 are consistent with comparable definitions in Chapter 115. Public hearings were held on February 24, 1992, in Beaumont, on February 25, 1992, in Houston and El Paso, and on February 26, 1992, in Arlington. Testimony was received from four commenters during the comment period which closed on February 28, 1992. The Texas Chemical Council (TCC), Ethyl Corporation (Ethyl), Mobil Oil Corporation (Mobil), and an individual generally supported the proposed revisions, but suggested changes. No commenters were specifically opposed to the revisions. An individual recommended that the definition of "capture efficiency" be changed to specify that capture efficiency would be the difference between the volatile organic compounds (VOC) generated by a process and the VOC emitted from a control device vent. Since the proposed definition was made in response to a United States Environmental Protection Agency (EPA) requirement and contains the same wording used by EPA, any revision of the proposed definition could jeopardize EPA approval. TCC expressed concern that the proposed revisions to the definitions of "component" and "leak" would require methyl tert-butyl ether facilities in Harris County and other counties to immediately be in compliance with fugitive emission control requirements. TCC further stated that compliance schedules should be provided for substantive rule changes. The proposed changes to the definitions of "component" and "leak" simply update references to existing rules for consistency with existing definitions within sec.115.10. They do not create new monitoring requirements. Four other comments were received on the definition of "leak." Ethyl and TCC commented that the proposed definition includes the exuding of process fluids, which, the commenters contend, may make compliance with the definition difficult to meet, particularly for some pumps. TCC also requested that the definition of "leak" be modified for consistency with the definition used in federal fugitive emissions control programs. The proposed definition of "leak" will insure consistency with the corresponding definition in sec.115.10. Additionally, because the proposed definition was made in response to an EPA requirement and contains the same wording used by EPA, any revision of the definition could jeopardize EPA approval. Mobil felt that repair requirements for components serving "heavy" liquids (liquids with a true vapor pressure less than 0.147 pounds per square inch absolute (psia) at 68 Degrees Fahrenheit) should apply only if monitoring shows a concentration greater than 10,000 parts per million by volume (ppmv). However, any VOC escaping a process stream can evaporate, and the staff does not feel it is appropriate to define a leak solely on the basis of the process fluid's vapor pressure. An individual recommended that the concentration at which a leak is defined should be lowered from 10,000 ppmv to 1,000 ppmv. This recommendation would be more restrictive than the existing rule and cannot be considered at this time. The 10,000 ppmv concentration was established in the CTGs relating to Fugitive Emissions Control. However, the staff will evaluate the cost-effectiveness of including a lower concentration in the definition of "leak" and, if appropriate, may consider this recommendation in future rulemaking. The staff noted that the definition for "pounds of VOC per gallon of solids" inadvertently included the phrase "surface coating process" rather than "surface coating processes" and has changed "process" to "processes" for consistency with the corresponding definition in sec.115.10. TACB is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, age or disability in employment or in the provision of services, programs, or activities. In compliance with the Americans With Disabilities Act, this document may be requested in alternate formats by contacting the Air Quality Planning Program staff at (512) 908-1457, (512) 908-1500 FAX or 1-800-RELAY-TX (TDD), or by writing or visiting at 12118 North IH-35, Park 35 Technology Center, Building A, Austin, Texas 78753. The amendment is 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.101.1. Definitions. Unless specifically defined in the Act or in the rules of the board, the terms used by the board have the meanings commonly ascribed to them in the field of air pollution control. In addition to the terms which are defined by the Texas Clean Air Act, the following terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Capture efficiency -The amount of volatile organic compounds (VOC) collected by a capture system which is expressed as a percentage derived from the weight per unit time of VOC entering a capture system and delivered to a control device divided by the weight per unit time of total VOC generated by a source of VOC. Capture system -All equipment (including, but not limited to, hoods, ducts, fans, booths, ovens, dryers, etc.) that contains, collects, and transports an air pollutant to a control device. Carbon adsorber -An add-on control device which uses activated carbon to adsorb volatile organic compounds from a gas stream. Carbon adsorption system-A carbon adsorber with an inlet and outlet for exhaust gases and a system to regenerate the saturated adsorbent. Coating-A material applied onto or impregnated into a substrate for protective, decorative, or functional purposes. Such materials include, but are not limited to, paints, varnishes, sealants, adhesives, thinners, diluents, inks, maskants, and temporary protective coatings. Coating line-An operation consisting of a series of one or more coating application systems and including associated flash-off area(s), drying area(s), and oven(s) wherein a surface coating is applied, dried, or cured. Component-(as used in Chapter 115 of this title (relating to Fugitive Emission Control in Petroleum Refineries, sec.sec.115.322- 115.329; Fugitive Emission Control in Synthetic Organic Chemical, Polymer, Resin and Methyl Tert- Butyl Ether Manufacturing Processes, sec.sec.115.332-115.339; and Fugitive Emission Control in Natural Gas/Gasoline Processing Operations, sec.sec.115.342- 115.349)-A piece of equipment, including, but not limited to, pumps, valves, compressors, and pressure relief valves, which has the potential to leak volatile organic compounds. Control device -Equipment (such as an incinerator or carbon adsorber) used to reduce, by destruction or removal, the amount of air pollutant(s) in an air stream prior to discharge to the ambient air. Control system -A combination of one or more capture system(s) and control device(s) working in concert to reduce discharges of air pollutants to the ambient air. Exempt solvent -Those carbon compounds or mixtures of carbon compounds used as solvents which have been excluded from the definition of volatile organic compound. Leak-(as used in Chapter 115 of this title (relating to Fugitive Emission Control in Petroleum Refineries, sec.sec.115.322-115.329; Fugitive Emission Control in Synthetic Organic Chemical, Polymer, Resin and Methyl Tert-Butyl Ether Manufacturing Processes, sec.sec.115.332-115.339; and Fugitive Emission Control in Natural Gas/Gasoline Processing Operations, sec.sec.115.342-115.349)- A volatile organic compound concentration greater than 10, 000 parts per million by volume or the dripping or exuding of process fluid based on sight, smell, or sound. Pounds of volatile organic compounds (VOC) per gallon of coating (minus water and exempt solvents) -Basis for emission limits for surface coating processes. Can be calculated by the following equation: [graphic] Pounds of volatile organic compounds (VOC) per gallon of solids-Basis for emission limits for surface coating processes. Can be calculated by the following equation: [graphic] Printing line-An operation consisting of a series of one or more printing processes and including associated drying areas. Vapor recovery system-Any control system that reduces volatile organic compound (VOC) emissions such that the aggregate true partial pressure of all VOC vapors will not exceed a level of 1.5 pounds per square inch absolute (10.3 kPa) or other emission limits specified in Chapter 115 of this title (relating to VOCs). Volatile organic compound (VOC)-Any compound of carbon or mixture of carbon compounds excluding methane, ethane, 1,1, 1-trichloroethane (methyl chloroform), methylene chloride (dichloromethane), trichlorofluoromethane (CFC-11), dichlorodifluoromethane (CFC-12), chlorodifluoromethane (CFC-22), trifluoromethane (FC-23), trichlorotrifluoroethane (CFC-113), dichlorotetrafluoroethane (CFC-114), chloropentafluoroethane (CFC-115), dichlorotrifluoroethane (HCFC-123), tetrafluoroethane (HFC-134a), dichlorofluoroethane (HCFC-141b), chlorodifluoroethane (HCFC-142b), carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, and ammonium carbonate. 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 June 18, 1992. TRD-9208602 Lane Hartsock Deputy Director, Air Quality Control Planning Texas Air Control Board Effective date: July 13, 1992 Proposal publication date: January 28, 1992 For further information, please call: (512) 908-1451 Chapter 115. Control of Air Pollution for Volatile Organic Compounds Subchapter C. Volatile Organic Compound Marketing Operations Control of Reid Vapor Pressure of Gasoline 31 TAC sec.sec.115.242, 115.243, 115.245-115.247 The Texas Air Control Board (TACB) adopts the repeal of sec.sec.115.242, 115. 243, 115.245-115.247, concerning control of Reid vapor pressure of gasoline, without changes as published in the January 28, 1992, issue of the Texas Register (17 TexReg 618). The repeal removes existing requirements which were superseded by more stringent federal requirements which became effective on May 1, 1992. Public hearings were held on February 24, 1992, in Beaumont, on February 25, 1992, in Houston and El Paso, and on February 26, 1992, in Arlington. Testimony was received fro 27>m one commenter during the comment period which closed on February 28, 1992. An individual opposed the repeal until federal gasoline Reid vapor pressure (RVP) regulations are adopted and TACB can insure that more stringent regulations are not needed. These rules were applicable only in the Dallas/Fort Worth Consolidated Metropolitan Statistical area where, prior to 1991, EPA requirements were less stringent. In 1991, EPA promulgated equally stringent RVP rules (9.0 pounds per square inch absolute (psia)), then, in 1992, lowered the requirement to 7.8 psia. Thus, TACB rules have effectively been preempted since the 1991 control season. The repeals are adopted under sec.382.017 of the Texas Clean Air Act (TCAA), TEXAS HEALTH AND SAFETY CODE ANNOTATED (Vernon 1990), which provides the TACB with the authority to adopt rules consistent with the policy and purposes of the TCAA. The TACB is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, age or disability in employment or in the provision of services, programs, or activities. In compliance with the Americans With Disabilities Act, this document may be requested in alternate formats by contacting the Air Quality Planning Program staff at (512) 908-1457, (512) 908-1500 FAX or 1 800-RELAY-TX (TDD), or by writing or visiting at 12118 North IH-35, Park 35 Technology Center, Building A, Austin, Texas 78753. 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 June 18, 1992. TRD-9208601 Lane Hartsock Deputy Director, Air Quality Control Planning Texas Air Control Board Effective date: July 13, 1992 Proposal publication date: January 28, 1992 For further information, please call: (512) 908-1451 TITLE 34. PUBLIC FINANCE Part I. Comptroller of Public Accounts Chapter 3. Tax Administration Subchapter O. State Sales and Use Tax 34 TAC sec.3.345 The Comptroller of Public Accounts adopts an amendment to sec.3.345, concerning state sales and use tax refunds to qualified businesses in enterprise zones, without changes to the proposed text as published in the May 12, 1992, issue of the Texas Register (17 TexReg 3451). The amendment is to subsection (b)(1). Only the Texas Department of Commerce has the authority to designate enterprise projects. The local governing body's role in the process is to certify to the Department of Commerce that a business is eligible for a sales tax refund. As stated in subsection (b)(4), the Department of Commerce then makes the certification to the Comptroller's Department. No comments were received regarding adoption of the amendment. The amendment is adopted under the Tax Code, sec.111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2. 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 June 19, 1992. TRD-9208498 Martin Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: July 9, 1992 Proposal publication date: May 12, 1992 For further information, please call: (512) 463-4028 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part IX. Texas Department on Aging Chapter 271. Multipurpose Senior Center Standards Statutes and Regulations 40 TAC sec.271.9 The Texas Department on Aging adopts new sec.271.9, concerning federal reversionary interest in multipurpose senior centers, without changes to the proposed text as published in the March 3, 1992, issue of the Texas Register (17 TexReg 1606). This policy is being adopted to insure compliance with provisions of the Older Americans Act of 1965, as amended, and Administration on Aging Program Instruction 90-04. This policy is designed to protect the federal revisionary interest in multipurpose senior centers which were constructed or purchased with Older Americans Act funds. No comments were received regarding adoption of the new section. The new section is adopted under the Human Resources Code, Chapter 101, which provides the Texas Department on Aging with the authority to develop rules governing the function of the department. 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 June 19, 1992. TRD-9208550 Mary Sapp Executive Director Texas Department on Aging Effective date: July 10, 1992 Proposal publication date: March 3, 1992 For further information, please call: (512) 444-2727