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 7. BANKING AND SECURITIES Part VII. State Securities Board Chapter 109. Transactions Exempt from Registration 7 TAC sec.109.3 The State Securities Board adopts an amendment to sec.109.3, concerning sales to financial institutions and certain institutional investors under the Securities Act, sec.5.H, with changes to the proposed text as published in the September 18, 1992, issue of the Texas Register (17 TexReg 6413). The amendment expands the list of institutional investors for purposes of sec.5.H. Subsection (c)(3) has been changed to specifically mention partnerships, trusts, and estates as entities to which securities may be sold; make it clear that individuals are excluded; and preclude use of the exemption if the entity was formed for the purpose of acquiring the specific securities. The amendment increases uniformity with the institutional investor exemptions typically found in other states' securities laws. The amendment expands the types of securities which may be sold without registration and sets forth additional entities that are ordinarily to be institutional investors. Two commenters expressed opinions regarding greater specification concerning which entities are included in subsection (c)(3). One of the commenters also suggested that the language be revised such that the exemption would not be available if the entity in question was created in order to purchase the specific securities. Commenting in favor of adopting the amendment were Andrews & Kruth, L.L.P. and Thompson & Knight. The agency does not disagree with the comments and has incorporated them into the section. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1, which provide that the board may make or adopt rules or regulations governing registration statements, applications, notices, and reports, and in the adoption of rules and regulations, may classify securities, persons, and matters within its jurisdiction, and prescribe different requirements for different classes. sec.109.3. Sales to Financial Institutions and Certain Institutional Investors under the Securities Act, sec.5.H. (a) Savings institutions. The term "savings institution," as used in the Securities Act, sec.5.H, includes any federally chartered credit union, savings and loan association, or federal savings bank, and any credit union or savings and loan association chartered under the laws of any state of the United States. (b) Sales to financial institutions and certain institutional investors acting as agent. (1) The sale of securities to a financial institution or other institutional investor listed in the Securities Act, sec.5.H, or subsection (c) of this section, is not exempt under sec.5.H or subsection (c) of this section if the financial institution or other institutional investor named therein is in fact acting only as agent for another purchaser that is not a financial institution or other institutional investor listed in sec.5.H or subsection (c) of this section. (2) Section 5.H and subsection (c) of this section exempt only sales to a financial institutional or other institutional investor named therein acting for its own account or as a bona fide trustee of a trust organized and existing other than for the purpose of acquiring the specific securities for which the seller is claiming an exemption under sec.5.H or subsection (c) of this section. (c) Sales to certain institutional investors. The State Securities Board, pursuant to the Securities Act, sec.5.T, exempts from the securities registration requirements of the Securities Act, sec.7, the offer and sale of any securities to any of the following purchasers: (1) an "accredited investor" (as that term is defined in Rule 501(a)(1) -(4), (7) and (8) promulgated by the SEC under the Securities Act of 1933, as amended ("1933 Act"), as made effective in SEC Release Number 33-6389, as amended in Release Numbers 33-6437, 33-6663, 33-6758, and 33-6825), excluding, however, any self-directed employee benefit plan with investment decisions made solely by persons that are "accredited investors" as defined in Rule 501(a)(5)-(6); (2) any "qualified institutional buyer" (as that term is defined in Rule 144A(A)(1) promulgated by the SEC under the 1933 Act, as made effective in SEC Release Number 33-6862); and (3) a corporation, partnership, trust, estate, or other entity (excluding individuals) having net worth of not less than $5 million or a wholly-owned subsidiary of such entity, as long as the entity was not formed for the purpose of acquiring the specific securities. (d) Financial statements. For purposes of determining a purchaser's total assets or net worth under this section, the issuer and the seller may rely upon the entity's most recent annual balance sheet or other financial statement which shall have been audited by an independent accountant or which shall have been verified by a principal of the purchaser. 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 10, 1992. TRD-9215130 Richard D. Latham Securities Commissioner State Securities Board Effective date: December 1, 1992 Proposal publication date: September 18, 1992 For further information, please call: (512) 474-2233 Chapter 117. Administrative Guidelines for Registration of Real Estate Programs 7 TAC sec.117.3 The State Securities Board adopts an amendment to sec.117.3, concerning suitability of the participant to reflect a recent change by the North American Securities Administrators Association, Inc. (NASAA), without changes to the proposed text as published in the August 14, 1992, issue of the Texas Register (17 TexReg 5660). There will be continued uniformity with other states in applying standards for registration of real estate program offerings. The section revises the suitability standards for participants in real estate program offerings to make the standards more stringent. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1, which provide that the board may make or adopt rules or regulations governing registration statements, applications, notices, and reports, and in the adoption of rules and regulations, may classify securities, persons, and matters within its jurisdiction, and prescribe different requirements for different classes. 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 10, 1992. TRD-9215131 Richard D. Latham Securities Commissioner State Securities Board Effective date: December 1, 1992 Proposal publication date: August 14, 1992 For further information, please call: (512) 474-2233 Chapter 121. Administrative Guidelines for Registration of Oil and Gas Programs 7 TAC sec.121.4 The State Securities Board adopts an amendment to sec.121.4, concerning suitability of the participant to reflect a recent change by the North American Securities Administrators Association, Inc. (NASAA), without changes to the proposed text as published in the August 14, 1992, issue of the Texas Register (17 TexReg 5661). There will be continued uniformity with other states in applying the standards for registration of oil and gas program offerings. The section revises the suitability standards for participants in oil and gas program offerings to make the standards more stringent. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1, which provide that the board may make or adopt rules or regulations governing registration statements, applications, notices, and reports, and in the adoption of rules and regulations, may classify securities, persons, and matters within its jurisdiction, and prescribe different requirements for different classes. 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 10, 1992. TRD-9215132 Richard D. Latham Securities Commissioner State Securities Board Effective date: December 1, 1992 Proposal publication date: August 14, 1992 For further information, please call: (512) 474-2233 Chapter 133. Forms 7 TAC sec.133.29 The State Securities Board adopts an amendment to sec.133.29, concerning the form captioned "Intrastate Exemption Notice for Sales Under Regulation sec.109.13(1)," without changes to the proposed text as published in the August 14, 1992, issue of the Texas Register (17 TexReg 5661). The form should reflect the agency's correct mailing address. The form reflects the agency's correct mailing address. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1, which provide that the board may make or adopt rules or regulations governing registration statements, applications, notices, and reports, and in the adoption of rules and regulations, may classify securities, persons, and matters within its jurisdiction, and prescribe different requirements for different classes. 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 10, 1992. TRD-9215134 Richard D. Latham Securities Commissioner State Securities Board Effective date: December 1, 1992 Proposal publication date: August 14, 1992 For further information, please call: (512) 474-2233 Chapter 139. Exemptions by Rule or Order 7 TAC sec.139.4 The State Securities Board adopts the repeal of sec.139.4, concerning private resales under SEC Rule 144A, without changes to the proposed text as published in the September 18, 1992, issue of the Texas Register (17 TexReg 6414). Newly adopted amendments to sec.109.3 of this title relating to sales to financial institutions and certain institutional investors under the Securities Act, sec.5.H, include a provision which exempts the sale of any security to any "qualified institutional buyer" as defined in the Securities and Exchange Commission's Rule 144A under the Securities Act of 1933, thereby eliminating the need for this section. No comments were received regarding adoption of the repeal. The repeal is adopted under Texas Civil Statutes, Article 581, sec.28-1, which provide that the board may make or adopt rules or regulations governing registration statements, applications, notices, and reports, and in the adoption of rules and regulations, may classify securities, persons, and matters within its jurisdiction, and prescribe different requirements for different classes. 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 10, 1992. TRD-9215135 Richard D. Latham Securities Commissioner State Securities Board Effective date: December 1, 1992 Proposal publication date: September 18, 1992 For further information, please call: (512) 474-2233 Chapter 141. Administrative Guidelines for Registration of Equipment Programs 7 TAC sec.141.3 The State Securities Board adopts an amendment to sec.141.3, concerning suitability of the participant to reflect a recent change by the North American Securities Administrators Association, Inc. (NASAA), without changes to the proposed text as published in the August 13, 1992, issue of the Texas Register (17 TexReg 5662). There will be continued uniformity with other states in applying standards for registration of equipment program offerings. The section revises the suitability standards for participants in equipment program offerings to make the standards more stringent. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1, which provide that the board may make or adopt rules or regulations governing registration statements, applications, notices, and reports, and in the adoption of rules and regulations, may classify securities, persons, and matters within its jurisdiction, and prescribe different requirements for different classes. 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 10, 1992. TRD-9215133 Richard D. Latham Securities Commissioner State Securities Board Effective date: December 1, 1992 Proposal publication date: September 18, 1992 For further information, please call: (512) 474-2233 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 7. Corporate and Financial Regulation Subchapter J. Examination Expenses and Assessments 28 TAC sec.7.1010 The State Board of Insurance of the Texas Department of Insurance adopts new sec.7.1010 concerning rates of assessment and charges to cover the expenses of examining insurance companies, with changes to the proposed text as published in the September 25, 1992, issue of the Texas Register (17 TexReg 6592). The new section is necessary to provide a method and rate of assessment for domestic and foreign insurance company examination expenses. Examination assessment rates vary from year to year since the rate is based on the examination costs of the department after taking into account any unexpended funds. The section is changed in (b)(2)(A) and (B) to reflect a restatement of assessment rates in percentage form. This is accomplished by moving the decimal point two places to the right in both assessment rates, which are followed by the wording "of 1.0%". Section 7.1010 provides the method and the rates of assessment for examination expenses of foreign and domestic insurance companies. Rates of assessment are levied against and collected from each domestic insurance company based on admitted assets and gross premium receipts for the 1991 calendar year, and from each foreign insurance company examined during the 1992 calendar year based on a percentage of the gross salary paid to an examiner for each month or part of a month during which the examination is made. The expenses and charges to be assessed are in addition to, and not in lieu of, any other charge which may be made under law, including the Insurance Code, Article 1.16. The department received comments that the combined costs of state insurance examinations and CPA audits are too high, and that the examination process should be made more efficient and cost effective in order to reduce these expenses. The commentor made specific recommendations to increase the overall efficiency of examination teams. The department recognizes the need for diligent effort to keep examination costs at reasonable rates and attempts to do so. However, since there were no specific comments on the expense factors of the assessment rates, no change has been made to the text of the section based on these comments. The only comments received were from Heath, Davis & McCalla, Attorneys at Law, on behalf of the Texas Legal Reserve Officials Association (TLROA). The new section is adopted under the Insurance Code, Articles 1.16 and 1.04, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The Insurance Code, Article 1.16 authorizes the State Board of Insurance to make assessments and charges in such amounts as the Commissioner of Insurance shall certify to be just and to comply with the provisions of the laws of this state relating to the examination of insurance companies and to comply with the provisions of the Insurance Code, Articles 1.16, 1.17, and 1.18. Article 1.04(b) authorizes the State Board of Insurance to determine rules and regulations in accordance with the laws of this state for uniform application. 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. sec.7.1010. Domestic and Foreign Insurance Company Examination Expenses and Assessments, 1993. (a) Foreign insurance companies examined during the 1992 calendar year shall pay for examination expenses according to the overhead rate of assessment specified in this subsection in addition to all other payments required by law including, but not limited to, the Insurance Code, Article 1. 16. Each foreign insurance company examined shall pay 34% of the gross salary paid to each examiner for each month or partial month of the examination in order to cover the examiner's longevity pay, state contributions to retirement and social security matching expenses, the state paid portion of insurance premiums and vacation and sick leave accrual. The overhead assessment will be levied with each month's billing. (b) Domestic insurance companies shall pay according to this subsection and rates of assessment herein for examination expenses as provided in the Insurance Code, Article 1.16. (1) The actual salaries and expenses of the examiners allocable to such examination shall be paid. The annual salary of each examiner is to be divided by the total number of working days in a year, and the company is to be assessed that part of the annual salary attributable to each working day the examiner is examining the company. The expenses assessed shall be those actually incurred by the examiner to the extent permitted by law. (2) An overhead charge to cover the cost of administrative departmental expenses attributable to examination of companies, which shall be paid and computed as follows: (A) 0.01175 of 1.0% of the admitted assets of the company as of December 31, 1991, upon the corporations or associations to be examined taking into consideration the annual admitted assets that are not attributable to 90% of pension plan contracts as defined in the Internal Revenue Code of 1986 sec.818(a) (26 United States Code sec.818(a); (B) 0.02330 of 1.0% of the gross premium receipts of the company for the year 1991, upon the corporations or associations to be examined taking into consideration the annual premium receipts that are not attributable to 90% of pension plan contracts as defined in the Internal Revenue Code of 1986, sec.818(a) (26 United States Code sec.818(a)). (3) If the overhead charge, as computed under paragraphs 2(A) and (B) of this subsection, produces an overhead assessment of less than a $25 total, a minimum overhead assessment of $25 shall be levied and collected. (4) The overhead assessments are based on the assets and premium receipts reported in the annual statements, except where there has been an understating of assets and/or premium receipts. 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 12, 1992. TRD-9215243 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: December 3, 1992 Proposal publication date: September 25, 1992 For further information, please call: (512) 463-6327 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part II. Texas Parks and Wildlife Department Chapter 65. Wildlife Subchapter A. Statewide Hunting and Fishing Proclamation 31 TAC sec.sec.65.3, 65.9, 65.26, 65.27, 65.30, 65.31, 65.40 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing held November 5, 1992, adopts new sec.65.30 and amendments to sec.sec.65. 3, 65.9, 65.26, 65.27, 65.31, and 65.40 concerning the statewide hunting and fishing proclamation. Section 65.9 and sec.65.30 are adopted with changes to the proposed text as published in the October 2, 1992, issue of the Texas Register (17 TexReg 6756). Sections 65.3, 65.26, 65.27, 65.31, and 65.40 are adopted without changes and will not be republished. The new section and amendments permits the Texas Parks and Wildlife Department to implement a pilot program for the 1992- 1993 hunting season and issue White- tailed Deer Herd Management Tags. The issuance of these tags will provide another method to landowners for their controlling of excessive numbers of antlerless white-tailed deer. Reduction of deer overpopulations will result in higher quality native vegetative habitat. Reduction of the white-tailed deer population under this program is for the sole purpose of protecting the habitat. The rules are needed to permit landowners who qualify for the program to control white-tailed deer numbers and bring the deer herds within the carrying capacity of the habitat. The rules will provide another means for landowners to prevent habitat degradation as a direct result of over populations of deer. Comments were received from the public in eight county public hearings and letters and telephone calls to the department. The public made comments favoring the program by saying it will control herd numbers and prevent habitat degradation, reduce the liability of landowners being sued, and will help landowners with excessive doe populations within a high fenced area to hedge against an overpopulation. The public made statements against the proposed rules by relating to how this proposed program will be the first step in privatization of wildlife for commercial purposes, that hunter opportunity will be lessened, and the program will take a resource that belongs to the state and the people of the state and place it under the control of some large landowners. An individual representing the Texas Wildlife Association conditionally favored the proposed white-tailed deer herd management tag program. An individual representing the East Texas Wildlife Association stated that youth who had passed the Hunter Safety course should be used as hunters for the program. An individual from Burnet County stated that the commission should approach this type of program with extreme caution as the overpopulation of deer within high fenced areas has been caused by the landowners themselves. The individual further stated that all deer harvested should be by 100% licensed hunters rather than only 20% as proposed in the rules. An individual representing the Lone Star Chapter of the Sierra Club was opposed to the program as this program brings up the issue of privatization of wildlife. The individual further stated that the regulatory power relating to wildlife should remain with the Texas Parks and Wildlife Commission so that department wildlife biologists will have the overall say on harvest. An individual representing the Audubon Society opposes the program as this program is a shift toward the direction of privatization of wildlife and there already exists adequate and flexible means for controlling deer overpopulations. An individual representing the Sportsmen's Conservationists of Texas stated that the program raises the privatization of wildlife issue, the program may hurt hunter opportunity, and also may be geared towards trophy management. The Deer Herd Management Tag program redefines the traditional concept of bag limit to allow the department to increase an individual's bag limit beyond normal limits in order to achieve a desired antlerless deer harvest on a specified tract of land. The program does not affect the doctrine that wildlife are a "common property" resource held in trust by the state on behalf of all citizens. The regulatory control of wildlife in Texas remains with the department and with the Parks and Wildlife Commission because deer herd management tags will be issued by the department and in a manner conforming to department standards and guidelines for wildlife management plans. In addition, the actual number will be set by department biologists to obtain a desired biological condition. Harvest levels will be designed to bring populations into balance with the habitat's capability to support the deer herd. The program is not designed specifically to alter sex ratios or decrease deer numbers to levels appropriate for intensive trophy management. Promotion of new hunting opportunities, including youth hunting, are required provisions of the program. The new section and amendments is adopted under the Texas Parks and Wildlife Code, Chapter 61, Uniform Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the Texas Parks and Wildlife Commission with authority to establish wildlife resource regulations including seasons, bag limits, means, methods, for this state, and specifically sec.61. 057 to issue permits for the taking of antlerless deer, Texas Parks and Wildlife Code, sec.41.010, which allows the department to establish fees for tags and the Texas Parks and Wildlife Code, sec.11.027(b), which allows collection of fee to cover costs of reviewing permit application. sec.65.9. Open Seasons: General Rules. (a)-(h) (No change.) (i) Every game bird or game animal wounded by hunting and reduced to possession by the hunter must be killed immediately and except as provided in sec.65.3 of this title, (see definition of deer herd management tag), become a part of the daily bag limit. (j)-(l) (No change.) (m) A person may give, leave, receive, or possess any species of legally taken wildlife resource, or a part of the resource, that is required to have a tag or permit attached, except for white-tailed deer tagged with a herd management tag, or is protected by a bag or possession limit, if the carcass or a part of a carcass is tagged with a hunter's document by the person who killed or caught the wildlife resource. The hunter's document that shall accompany the carcass or a part of the carcass until reaching final destination and the document must contain the following information: (1)-(5) (No change.) sec.65.30. White-tailed Deer Herd Management Tag. (a) The white-tailed deer herd management tag shall be issued to the first 20 eligible landowners, (see sec.65.3 of this title relating to Definition of eligible landowner), or their designated agents, (see sec.65.3 of this title relating to Definition of Designated agent), that make application to the department for the tags after the effective date of this section. (b) The white-tailed deer herd management tag shall allow the taking of one antlerless white-tailed deer. (c) The white-tailed deer herd management tag(s) shall be issued only to the landowner or the designated agent of the landowner. (1) The white-tailed deer herd management tag(s) shall be issued only after the landowner or landowner's designated agent has made application for such tag(s) to the department on a form prescribed by the department with such application including a departmental approved wildlife management plan, sec.65. 26 of this title (relating to Wildlife Management Plan). For the application to be considered, the wildlife management plan must be written by a Texas Parks and Wildlife Department (TPWD) biologist or any certified wildlife biologist. Wildlife management plans will be subject to the TPWD standards and guidelines for wildlife management plans. Wildlife management plans shall be operational at time of application. (2) The number of white-tailed deer herd management tags to be issued will be specified in the wildlife management plan following scientific studies that determine the number of antlerless deer to be harvested to lower the population to carrying capacity, thereby preventing overuse of habitat by deer. The tag allocation may not be used as a means solely to alter sex ratios of deer herds on the managed property. (3) The white-tailed deer herd management tag(s) shall be issued only after the landowner or landowner's designated agent has provided to the department fees equaling $750 as program application fee and $5.00 for each tag issued under the provisions of the wildlife management plan. The fees required under this paragraph are not refundable. (d) The white-tailed deer herd management tag shall be valid only during the lawful open deer season and during legal shooting hours, as prescribed in sec.65.40 of this title (relating to Deer: White-tailed and Mule Deer) and Texas Parks and Wildlife Code, sec.62.004 (relating to Hunting at Night) for the period extending from the effective date of this rule through January 31, 1993. (e) Deer taken under the authority of a white-tailed deer herd management tag shall be taken only on the property described in the wildlife management plan. (f) Each landowner or designated agent who has issued white-tailed deer herd management tags to a designated harvester (see sec.65.3 of this title for definition of Designated harvester) shall be required to harvest 40 antlerless deer or 20% of the recommended antlerless white-tailed deer harvest, whichever number is greater, by use of hunters other than those defined as designated harvesters. (g) It is a violation of these rules for a person who has entered into and is acting under the provisions of a department wildlife management plan whether the person is the landowner or a designated agent to fail to keep all edible portions of the carcass of a deer taken under the plan and tagged with a white- tailed deer herd management tag in an edible condition. (h) All edible portions of the carcass of the deer shall be donated to a charitable institution, hospital, or person or persons and delivered in an acceptable form. (i) A designated harvester commits an offense if the designated harvester hunts an antlerless white-tailed deer without a deer herd management tag in his or her immediate possession. (j) The white-tailed deer herd management tag shall be immediately attached to the carcass upon kill and shall remain attached to the carcass until final processing as required under the Texas Parks and Wildlife Code, sec.42.018 and sec.65.9 (g) of this title (relating to Open Seasons: General Rules). (k) A white-tailed deer herd management tag harvest report form provided by the department shall be submitted to the department by the landowner or designated agent not later than the 14th day of February and must contain the following information: (1) for the designated harvester: the sex and date of kill for each deer tagged with a white-tailed deer herd management tag, and the name, address, telephone number, and hunting license number of the designated harvester; (2) for hunters other than a designated harvester: the sex and date of kill for each deer tagged with a white-tailed antlerless deer tag taken from the hunting license and the name, address, telephone number, and hunting license number of the hunter; and (3) each landowner or designated agent donating deer killed under this program shall notify the department of the number of deer donated and the name of the charitable institution, hospital, or person or persons that received the deer. (l) It is an offense if the taking of deer under the authority of the deer herd management tag is commenced less than 72 hours before notification of the Regional Law Enforcement Director for the area where the property is located. (m) Each landowner receiving white-tailed deer herd management tags shall sign a contract with the department to provide public hunting opportunity of a form determined to be acceptable by the executive director, such acceptable forms of public hunting include one of the following. (1) The landowner will provide one guided quality buck deer hunt of no more than three days duration on the landowner's managed property for one buck deer during the 1993-1994 regular open season, to be provided to a public hunter chosen by random drawing by the department, with the hunter bearing all expenses for travel and subsistence. (2) The landowner shall pay to the department all expenses, up to $2, 500, associated with purchasing one guided quality buck deer hunt of no more than three days duration for one buck deer during the 1993-1994 regular open season, to be provided to a public hunter chosen by random drawing by the department, with the hunter bearing all expenses for travel to and from the hunting location. (3) The landowner shall host a youth hunt of no more than three days duration for deer of either sex at the landowner discretion, providing hunting opportunity for no less than ten youth accompanied by department employees, with the landowner paying $500 to the department to offset costs associated with the hunt, and imposing no stricter limits on the take of deer than required by the Annual Hunting and Fishing Proclamation. (4) By permission of the executive director, the landowner shall contract with the department to provide an alternative public hunting opportunity, which in the judgment of the executive director is equivalent in value to paragraphs (1), (2), or (3) of this section, with the form of that hunting opportunity to be described in detail and in writing. (n) A person who fails to comply with any provision of sec.sec.65.27, 65. 30, or 65.31 of this title (relating to Permits and Tags, White-tailed Deer Herd Management Tag, and Antlerless Mule Deer Permits and White-tailed Deer Permits and Tags) commits an offense and in addition to a penalty provided for the offense under Texas Parks and Wildlife Code, sec.61.901 (relating to Penalties), the offense will result in the landowner and his designated agent being declared ineligible to apply for or receive white-tailed deer herd management tags for three years following the date of conviction. (o) This section expires February 28, 1993. 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 9, 1992. TRD-9215125 Paul M. Shinkawa Director, Legal Services Texas Parks and Wildlife Department Effective date: December 1, 1992 Proposal publication date: October 2, 1992 For further information, please call: 1-800-792-1112, ext. 4433 or (512) 389- 4433 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 15. Medicaid Eligibility Subchapter D. Resources The Texas Department of Human Services (DHS) adopts amendments to sec.sec.15.400, 15.415, 15.435, and 15.503, without changes to the proposed text as published in the October 9, 1992, issue of the Texas Register (17 TexReg 7047). The amendments are justified to include in the Medicaid eligibility rules certain exempt and countable resources and to add the exclusion of mandatory payroll deductions to the calculation of a dependent's earned income in spousal impoverishment cases. The amendments will function by ensuring that policies regarding nursing home refunds and resources are applied statewide. Also, these amendments introduce a resource exclusion for determining eligibility for individuals who transfer their assets to religious orders following a vow of poverty and provide greater allowance amounts for dependents with earned income in spousal impoverishment cases. No comments were received regarding adoption of the amendments. 40 TAC sec.sec.15.400, 15.415, 15.435 The amendments are 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 November 12, 1992. TRD-9215244 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Effective date: December 15, 1992 Proposal publication date: October 9, 1992 For further information, please call: (512) 450-3765 Subchapter F. Budget and Payment Plans 40 TAC sec.15.503 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 November 12, 1992. TRD-9215245 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Effective date: December 15, 1992 Proposal publication date: October 9, 1992 For further information, please call: (512) 450-3765 Chapter 48. Community Care for Aged and Disabled In-Home and Family Support Program 40 TAC sec.48.2708 The Texas Department of Human Services (DHS) adopts an amendment to sec.48. 2708, concerning service subsidy and capital expenditure, without changes to the proposed text as published in the October 9, 1992, issue of the Texas Register (17 TexReg 7048). The justification for the amendment is to allow for other forms of verification of expenditures, in addition to receipts, in the In-Home and Family Support Program. The amendment will function by simplifying program requirements, resulting in a more user-friendly program. No comments were received regarding adoption of the amendment. The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 35, which provides the department with the authority to administer public assistance and support services for persons with disabilities 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 November 12, 1992. TRD-9215140 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Effective date: December 15, 1992 Proposal publication date: October 9, 1992 For further information, please call: (512) 450-3765