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 16. ECONOMIC REGULATION Part II. Public Utility Commission of Texas Chapter 23. Substantive Rules Rates 16 TAC sec.23.26 The Public Utility Commission of Texas adopts an amendment to sec.23.26, with changes to the proposed text as published in the July 31, 1992, issue of the Texas Register (17 TexReg 5317). The amendment clarifies that, in reviewing applications for new and experimental services provided by a local exchange company (LEC), the commission may apply the requirements of sec.23.26 regardless of whether the application was filed pursuant to that section or pursuant to other commission rules. The commission received comments in favor of the originally proposed amendment from Consumers Union, MCI, and the Office of Public Utility Counsel. Comments in opposition to the originally proposed amendment were received from Southwestern Bell Telephone Company, Central Telephone Company of Texas, and the Texas Statewide Telephone Cooperative, Inc. Two comments suggested that additional changes to sec.23.26 should be considered by the commission, including a change in the definition of "new services," an extension of the time limits for responses to requests for information, an additional procedure for contesting the denial of requests for waivers, and the grant of additional discretion to presiding examiners. One comment also suggested that changes should be made to sec.23.27 and sec.23.28 to allow for expedited consideration of noncontroversial filings. The commission disagrees with these proposed changes because they are beyond the scope of the changes contemplated by the proposed rule published in the Texas Register and cannot be adopted as part of this proceeding. Two comments suggested that the proposed amendment would eliminate one option currently available for LECs to seek approval of new services. The comments argued that the provision that all new service applications be subject to the requirements of sec.23.26 is unnecessary and burdensome, particularly for smaller LECs. Other comments supported the change as necessary to insure that all applications are subject to the standards of sec.23.26 and to insure that new services are not subsidized by monopoly services. The commission agrees, to some extent, with both these positions. The imposition of sec.23.26 standards may be burdensome to smaller LECs, or even larger LECs, in some instances. It was for this reason that the current version of sec.23.26 allowed for waiver of these requirements for good cause and allowed LECs to submit applications for new services under other substantive rule provisions. However, the information required by sec.23.26 is often necessary in order to properly review an application for new services to insure that the new service is not subsidized by existing monopoly services. LECs should not be allowed to evade the requirements of sec.23.26 merely by choosing to file the application pursuant to another substantive rule which does not specifically require submission of the same information. Accordingly, the commission has revised the proposed amendment by removing the requirement that either sec.23.26 or a docketed proceeding be used for all new services. The commission has further revised the proposed amendment by reinstating the provision allowing an LEC to utilize other commission rules to offer new an experimental services, but adding language to specifically recognize that the commission retains the discretion to require any application for new and experimental services to comply with the requirements of sec.23.26. With these revisions, the rule accurately reflects recent commission precedent concerning the application of the rule. The amendment is adopted under Texas Civil Statutes, Article 1446c, sec.16(a) , which provide the Public Utility Commission of Texas with the authority to make rules reasonably required in the exercise of its power and jurisdiction, and sec.18, which provides that the commission shall promulgate rules and establish procedures which allow the expedited introduction of new and experimental services. sec.23.26. New and Experimental Services. (a)-(b) (No change.) (c) Filings requesting approval of new and experimental services. An LEC may request approval of a new or experimental service by following the procedures outlined in this section. In addition to copies required by other commission rules, one copy of the application shall be delivered to the Telephone Division and one copy to the Office of Public Utility Counsel. Nothing in this section precludes an LEC from utilizing other provisions of this title to offer such services, however, the commission or the presiding examiner, in its discretion, may require any application for a new or experimental service to comply with the requirements of this section. Not later than 30 days prior to the proposed effective date of the new or experimental service, the LEC shall file with the commission and the Office of Public Utility Counsel an application containing the following information: (1)-(9) (No change.) (d)-(l) (No change.) 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 January 14, 1993. TRD-9317751 John M. Renfrow Secretary of the Commission Public Utility Commission of Texas Effective date: February 5, 1993 Proposal publication date: July 31, 1993 For further information, please call: (512) 458-0100 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 1. General Administration Subchapter C. Maintenance Taxes 28 TAC sec.1.412 The State Board of Insurance of the Texas Department of Insurance adopts new sec.1.412, concerning assessment of maintenance taxes on insurance companies, with changes to the proposed text as published in the November 20, 1992, issue of the Texas Register (17 TexReg 8134). The section is necessary to provide rates of assessment and record the rates of assessment for maintenance taxes for 1993 for all lines of insurance. In subsection (d) of the text, the year pertaining to the filing of the annual statement was changed from 1992 to 1993. Section 1.412 provides the methods of assessment on the basis of gross premium receipts for calendar year 1992 or on some other statutorily designated basis. These rates apply to life, accident, and health insurance; motor vehicle insurance; casualty and fidelity insurance and guaranty and surety bonds; fire and allied lines insurance, including marine; workers' compensation insurance; title insurance; health maintenance organizations; third party administrators; and corporations issuing prepaid legal services contracts. Two comments were received on the section as proposed and published. Universe Life Insurance Company and AIA Insurance recommended a change to the proposal. Both commenters focused on third party administrators paying maintenance taxes on gross amounts of administrative or services fees received from licensed insurers for which maintenance taxes will also be assessed for life, accident, and health premiums. They believe this results in double taxation of the same premium. The commenters recommended that maintenance taxes on third party administrators be limited to those gross receipts received in connection with self-funded benefits. The Department disagrees with the recommendation based on the fact that companies have the ability to negotiate contracts for the use of third party administrators and it is a business decision to use them. The Department sets maintenance tax rates to regulate the various lines of insurance, third party administrators, and health maintenance organizations. The Texas Insurance Code provides legally separate and distinct taxing mechanisms to produce the amount of funds necessary to pay all the expenses of regulating these taxable units. Therefore, it is proper to include total gross administrative fees in the tax base for third party administrators. The new section is adopted under the Insurance Code, Articles 4.17, 5.12, 5. 24, 5.49, 5.68, 9.46, 20A.33, 21.07-6 sec.21, 23.08, and 1.04 and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The Insurance Code, Article 4.17, establishes a maintenance tax based on insurance premiums for life, accident, and health coverage. Article 5.12 establishes a maintenance tax based on insurance premiums for motor vehicle coverage. Article 5.24 establishes a maintenance tax based on insurance premiums for casualty, fidelity, guaranty, and surety bonds coverage. Article 5.49 establishes a maintenance tax based on insurance premiums for fire and allied lines coverage, including inland marine. Article 5.68 establishes a maintenance tax based on insurance premiums for workers' compensation coverage. Article 9.46 establishes a maintenance tax based on insurance premiums for title coverage. Article 21.07-6 sec.21 establishes a maintenance tax based on the gross amount of administrative or service fees for third party administrators. Article 23.08 establishes a maintenance tax based on gross revenue of corporations issuing prepaid legal service contracts. The Texas Health Maintenance Organization Act, sec.33 (codified at the Insurance Code, Article 20A.33), provides authorization for the Texas Department of Insurance to assess maintenance taxes for the lines of insurance and related activities specified in proposed sec.1.412. Article 1. 04(b) authorizes the State Board of Insurance to determine rules 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.1.412. Maintenance Taxes. (a) The following rates for maintenance taxes are assessed on gross premiums of insurers as delineated in this section for the calendar year 1992 for the lines of insurance specified: (1) for motor vehicle insurance, pursuant to the Insurance Code, Article 5.12, the rate is .058 of 1.0%; (2) for casualty and fidelity insurance and guaranty and surety bonds, pursuant to the Insurance Code, Article 5.24, the rate is .210 of 1.0%; (3) for fire insurance and allied lines, including inland marine, pursuant to the Insurance Code, Article 5.49, the rate is .525 of 1.0%; (4) for workers' compensation insurance, pursuant to the Insurance Code, Article 5.68, the rate is .200 of 1.0%; (5) for title insurance, pursuant to the Insurance Code, Article 9.46, the rate is .132 of 1.0%. (b) The rate for the maintenance tax to be assessed on gross premiums for the calendar year 1992 for life, accident, and health insurance, pursuant to the Insurance Code, Article 4.17, is .040 of 1.0%. (c) The following rates for maintenance taxes are assessed for the calendar year 1992 for the entities specified: (1) for health maintenance organizations, pursuant to the Texas Health Maintenance Organization Act, sec.33 (codified at the Insurance Code, Article 20A.33), the rate is $.42 per enrollee for single service health maintenance organizations and $.78 per enrollee for multi-service health maintenance organizations; (2) for third party administrators, pursuant to the Insurance Code, Article 21. 07-6, sec.21, the rate is .500 of 1.0% of the correctly reported gross amount of administrative or service fees; (3) for corporations issuing prepaid legal service contracts, pursuant to the Insurance Code, Article 23.08, the rate is 1.0% of correctly reported gross revenues. (d) The taxes assessed under subsections (a), (b), and (c)(1), and (3) of this section shall be due and payable to the Texas Department of Insurance as follows: 50% on March 1, 1993, or on the date upon which the annual statement for such insurer is required to be filed during 1993; and 50% on September 15, 1993. Insurers whose maintenance tax for the previous tax year was less than $2,000 for each tax liability specified in the Insurance Code, Articles 5.12, 5.24, 5.49, 5.68, 4.17, 9.46, 20A.33, and 23.08 shall remit 100% of such taxes on March 1, 1993, or on the date upon which the annual statement for such insurer is required to be filed during 1993. (e) Taxes assessed under subsection (c)(2) of this section shall be due and payable to the Texas Department of Insurance as follows: 50% on March 1, 1993, or the date upon which the annual statement for such insurer is required to be filed during 1993; and 50% on September 15, 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 January 19, 1993. TRD-9317844 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: February 9, 1993 Proposal publication date: November 20, 1992 For further information, please call: (512) 463-6328 Chapter 7. Corporate and Financial Regulation Subchapter A. Examination and Corporate Custodian and Tax 28 TAC sec.7.70 The State Board of Insurance of the Texas Department of Insurance adopts new sec.7.70, with changes to the proposed text as published in the November 24, 1992, issue of the Texas Register (17 TexReg 8226). Section 7.70 concerns forms and instructions for the filing of tax returns by insurers and other entities required to file tax returns with the Texas Department of Insurance for the 1992 calendar year and those required to file quarterly premium tax returns with the department during the 1993 calendar year. This new section is necessary to provide forms and instructions to facilitate compliance with statutory requirements for reporting and paying of premium taxes, retaliatory taxes, filing fees, and maintenance taxes to the Texas Department of Insurance. New sec.7.70 adopts by reference forms and instructions for the preparation of annual and quarterly tax returns by insurers and other entities subject to premium taxes, retaliatory taxes, filing fees, and maintenance taxes. The new section provides insurers and other entities with the necessary forms and instructions for filing tax returns as required by statute. A commenter suggested that the General Instructions of each tax form include an explanation of the use of the Rapid Deposit Programs (Electronic Funds Transfer), also known as TexNet. Since the number of taxpayers who qualify for remittance through TexNet is small, the department routinely notifies qualifying taxpayers of the TexNet program. Since the department believes that mentioning the TexNet program would be confusing to many non-qualifying taxpayers, the department has not changed the instructions. The commenter was generally in favor of the proposed section with a suggestion for a change to the tax instructions. Republic Life Insurance Company made the supporting comments regarding the tax forms with specific suggestions regarding the Rapid Deposit Programs (TexNet). The new section is adopted under the Texas Insurance Code, Articles 1.04, 1. 10, sec.9, 1.14-2, 1.35B, 4.07, 4.10, 4.11, 4.11B, 4.11C, 4.17, 5.12, 5.24, 5. 49, 5.68, 9.46, 9.59, 20A.22, 20A.33, 21.07-6, 21.28-C, 21.28-D, 21.54, and 23. 08; and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5, and Article 8308, sec.2.22 and Article 8308, sec.11.09. The Texas Insurance Code, Article 1. 04, places original jurisdiction for the adoption of rules in the department. Article 1.10, sec.9, requires the department to furnish companies required to report to the department with blank forms for the statements required. Article 1.14-1 requires payment of taxes on gross premiums written by unauthorized insurers. Article 1.35B imposes an assessment for support of the Office of Public Insurance Counsel. Article 4.07 specifies the charges for certain fees. The Texas Insurance Code, Articles 4.10, 4.11, 4.11B, 4.11C, 5.76-3, 9.59, and 21.54; Texas Civil Statutes, Article 8308, sec.2.22 and sec.11.09; and the Texas Health Maintenance Organization Act, Article 20A.33, require payment of taxes on gross premiums by entities regulated by the department or on gross amounts of similar revenue by health maintenance organizations. The Texas Insurance Code, Articles 9.48, 21.28-C, and 21.28-D provide for premium tax writeoffs based on guaranty fund association payments. The Texas Insurance Code, Articles 4.17, 5.12, 5.24, 5.49, 5.68, 5.76-5, 9.46, 21.07-6, and 23.08, require the payment of maintenance taxes by certain entities regulated by the department. The Texas Insurance Code, Articles 4.10 and 4.11, and Texas Health Maintenance Organization Act, Article 20A.22, give the department rulemaking authority. Texas Civil Statutes, Article 6252-13a, sec.4, require and authorizes the department to adopt rules of practice setting forth the nature and requirements of all procedures available. sec.7.70. Preparation of 1992 Tax Returns by Insurers and Other Entities. Forms and instructions for the preparation of tax returns and certain fees for insurance companies and other principals for the 1991 calendar year are adopted by reference. These instructions and forms are published by the Texas Department of Insurance and may be obtained from Tax Administration of the Texas Department of Insurance, William P. Hobby State Office Building, Tower One, Room 860, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104; (512) 322-4233. Each insurer or other entity shall follow such instructions and use and report on such forms as appropriate to its operations. The instructions and forms are more particularly identified as follows: (1) a form identified as the Instructions for Filing and Preparing the 1992 Texas Annual Tax Return for Domestic, Foreign, and Alien Carriers Transacting Life, Health, and Accident Business; (2) a form identified as the 1992 Annual Tax Return for Domestic, Foreign, and Alien Carriers Transacting Life, Health, and Accident Business; (3) a form identified as the Instructions for Filing and Preparing the 1992 Texas Annual Tax Return for Domestic, Foreign, and Alien Carriers, Lloyds, Reciprocal Exchanges, and Miscellaneous Organizations Transacting Property and Casualty Business; (4) a form identified as the 1992 Annual Tax Return to be completed by Domestic, Foreign, and Alien Carriers, Lloyds, Reciprocals, and Miscellaneous Organizations Transacting Property and Casualty Business; (5) a form identified as the Instructions for Filing and Preparing the 1992 Texas Annual Tax Return for Health Maintenance Organizations; (6) a form identified as the 1992 Texas Annual Tax Return to be completed by Health Maintenance Organizations; (7) a form identified as the 1992 Texas Annual Tax Return to be completed by Prepaid Legal Organizations; (8) a form identified as the 1992 Texas Annual Tax Return, to be completed by Local Mutual Aid Associations; (9) a form identified as the Instructions for Filing and Preparing the 1993 Texas Quarterly Premium Tax Return for Domestic, Foreign, and Alien Carriers Transacting Life, Health, and Accident Business; (10) a form identified as the 1993 Quarterly Premium Tax Return for Life, Health, and Accident Insurance Carriers; (11) a form identified as the Specific Instructions for Preparing and Filing the 1993 Texas Quarterly Premium Tax Return - Domestic, Foreign, and Alien Carriers Transacting Property and Casualty Business; (12) a form identified as the 1993 Quarterly Tax Return for Property and Casualty Insurance Carriers; (13) a form identified as the Instructions for Filing and Preparing the 1993 Texas Quarterly Premium Tax Return for Health Maintenance Organizations; (14) a form identified as the 1993 Quarterly Tax Return for Health Maintenance Organizations; (15) a form identified as the Specific Instructions for Preparing and Filing the 1993 Texas Quarterly Premium Tax Return for Domestic, Foreign, and Alien Carriers Transacting Title Business; (16) a form identified as the 1993 Quarterly Tax Return for Title Insurance Carriers; (17) a form identified as the Instructions for Filing and Preparing the 1992 Texas Annual Tax Return for Foreign and Alien Life, Health, and Accident Insurance Carriers operating under the Texas Insurance Code, Articles 3.25 and 3.59; (18) a form identified as the 1992 Texas Annual Tax Return to be completed by Foreign and Alien Life, Health, and Accident Insurance Carriers operating under Articles 3.25 and 3.59; (19) a form identified as the 1992 Texas Maintenance Tax Return, including instructions for Third Party Administrators; (20) a form identified as the Instructions for Filing and Completing the 1992 Texas Annual Tax Return for Title Business; (21) a form identified as the 1992 Annual Tax Return for Domestic and Foreign Title Carriers; (22) a form identified as the Specific Instructions for Completing the 1992 Texas Annual and 1993 Texas Quarterly Tax Returns for Registered Risk Retention Groups; (23) a form identified as the 1992 Texas Workers' Compensation Maintenance Tax Surcharge; (24) a form identified as the Texas Surplus Lines Agent's Semi-Annual Tax Report; and (25) a form identified as Instructions for Filing the Surplus Lines Agent's Semi-Annual Tax Report. 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 January 19, 1993. TRD-9317847 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: February 9, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-6328 Subchapter J. Examination Expenses and Assessments 28 TAC sec.7.1011 The State Board of Insurance of the Texas Department of Insurance adopts new sec.7.1011, concerning rates of assessment and charges to cover the expenses of examining insurance companies, without changes to the proposed text as published in the November 20, 1992, issue of the Texas Register (17 TexReg 8135). The 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. Section 7.1011 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 1992 calendar year, and from each foreign insurance company examined during the 1993 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. No comments were received. 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. 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 January 19, 1993. TRD-9317845 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: February 9, 1993 Proposal publication date: November 20, 1992 For further information, please call: (512) 463-6328 Chapter 25. Insurance Premium Finance Subchapter H. Annual Reports, Examinations, and Assessments 28 TAC sec.25.717 The State Board of Insurance of the Texas Department of Insurance adopts new sec.25.717, concerning the general administrative expense assessment of insurance premium finance companies, without changes to the proposed text as proposed published in the November 20, 1992, issue of the Texas Register (17 TexReg 8135). The new section is necessary to provide a rate of assessment sufficient to meet the expenses of performing the department's statutory responsibilities for examining, investigating, and regulating insurance premium finance companies. The new section provides the method and the rates of assessment to be levied against each insurance premium finance company. This assessment covers the general administrative expense of the past fiscal year and is collected from each insurance premium finance company on the basis of a percentage of total loan dollar volume for the 1992 calendar year. No comments were received regarding adoption of the new section. The new section is proposed under the Insurance Code, Articles 24.06(c), 24. 09 and 1.04 and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The Insurance Code, Article 24.06(c) provides that each insurance premium finance company licensed by the department shall pay an amount assessed by the department to cover the direct and indirect cost of examinations and investigations and a proportionate share of general administrative expense attributable to regulation of insurance premium finance companies. Article 24. 09 authorizes the department to adopt and enforce rules necessary to carry out provisions of the Insurance Code concerning the regulation of insurance premium finance companies. 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. The adopted new section affects regulation relating to premium finance insurance company examination expenses and assessments for 1993, under the Insurance Code, Article 24.06. 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 January 19, 1993. TRD-9317846 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: February 9, 1993 Proposal publication date: November 20, 1992 For further information, please call: (512) 463-6328 Part II. Texas Workers' Compensation Commission Chapter 124. Carriers: Required Notices and Mode of Payment 28 TAC sec.124.1, sec.124.7 The Texas Workers' Compensation Commission adopts amendments to sec.124.1 and sec.124.7, concerning Written Notice of Injury and Initial Payment of Temporary Income Benefits. Section 124.1 is adopted with changes to the proposed text as published in the November 27, 1992, issue of the Texas Register (17 TexReg 8267). Section 124.7 is adopted without changes and will not be republished. These amendments establish: what the commission will report to the insurance carrier; when the report will be made; a presumption of receipt by the carrier; that the carrier has the burden of proof if a dispute exists over receipt; and that the carrier must monitor claims and pay benefits when it finds benefits are due rather than when an outside source provides written notice that benefits are probably due. The only change in text is found in sec.124.1(d) where the commission inserted text that establishes the date on which the carrier is presumed to have received the document. Comments opposing the proposed amendment to sec.124.1 were received from the following groups: Alliance of American Insurers and American Insurance Association. The comments and commission responses are as follows: The amendment, as proposed, may lead to confusion and inconsistency in application by requiring a carrier to prove the negative, that a document was not received. Recommend that the rule include specific proofs that will allow the carrier to meet the burden of proof test. The commission disagrees that the amendment will lead to confusion. The commission intends that a carrier carry their burden of proof in the manner commonly used in court to establish that a notice was not received. For example, a carrier could: attest that all incoming notices of injury are handled in a specific manner and follow a specific path through the carrier's office as a normal business practice; provide an affidavit from a responsible manager within the carrier that a diligent search was conducted and that the notice of injury is not in the file nor in any of the other places that notices of injury are likely to be found; and that the carrier therefore concluded that the notice was not received by the carrier. The amendment, as proposed, creates an unfair assumption of fact that an insurance carrier has received every employer's notice of injury received by the commission. The carrier is penalized when the employer reports an injury to the commission but not to the carrier. Since the carrier can only contend that the notice was not received and that contention cannot overcome the carrier's burden of proof so the presumption acts as conclusive presumption that the carrier received notice when the commission received notice. This nullifies the employer duty to file with both the carrier and the commission and removes the potential penalty against an employer who fails to file with the carrier. The amendment, as proposed, should not be adopted. The commission disagrees. The point made is very similar to the previous comment in that all of the dire effects described depend on the inability of a carrier to carry the burden of proving that a notice of injury was not received. Since the previous response established that the commission believes a carrier can carry the burden of proof, the concerns raised in this comment are not expected to materialize. However, review of the concerns raised has identified a potential shortcoming of the proposed amendment in that it does not set a date certain for the presumption of receipt. An appropriate change to the proposed amendment is therefore made in subsection (d) to replace the phrase "if the commission has received" with "on the date the commission received". These new sections are adopted under Texas Civil Statutes, Article 8308-2. 09(a), which authorize the commission to adopt rules necessary to administer the Act, Texas Civil Statutes, Article 8308-4.22 and 4.23, which define the accrual date for benefits, and Texas Civil Statutes, Article 8308-5.21, which require the carrier to initiate compensation. sec.124.1. Written Notice of Injury Defined. (a) Written notice of injury, as used in The Texas Workers' Compensation Act (Act), sec.5. 21, consists of the insurance carrier's earliest receipt of: (1) the employer's first report of injury; (2) the notification provided by the commission under subsection (c) of this section; or (3) any other written document, regardless of source, which fairly informs the insurance carrier of the name of the injured employee, the identity of the employer, the approximate date of the injury, and facts showing compensability. (b) A carrier shall date-stamp each written notice of injury upon receipt. (c) The commission shall furnish written notification to the insurance carrier when a source other than the carrier reports: (1) an injury which may cause the employee eight days or more of disability or has resulted in an impairment; (2) a death; or (3) an occupational disease. (d) For purposes of this title, the carrier shall be presumed to have received notice on the date the commission received written notice required by the Act or commission rules to be filed with the carrier and with the commission. The carrier has the burden of proving that it did not receive or timely receive the written notice. 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 January 19, 1993. TRD-9317833 Susan Cory General Counsel Texas Workers' Compensation Commission Effective date: March 1, 1993 Proposal publication date: November 27, 1992 For further information, please call: (512) 440-3592 Chapter 134. Guidelines for Medical Services, Charges, and Payments Subchapter C. Medical Fee Guidelines 28 TAC sec.134.301 The Texas Workers' Compensation Commission adopts new sec.134.301, concerning Dental Guidelines, with changes to the proposed text as published in the November 27, 1992, issue of the Texas Register (17 TexReg 8269). The only change made in this section is to change the date of dental treatment subject to the Guideline. In the second sentence, January 1, 1993, is replaced with March 1, 1993. This section clarifies which treatments are subject to the Workers' Compensation Act. At this time the guideline does not list specific dollar values for procedures, though such specificity will be included in future revisions after enough statewide information has been collected. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 8308-2.09(a), which authorize the commission to adopt rules necessary to administer the Act, Texas Civil Statutes, Article 8308-8.01, which require the commission to establish by rule medical policies and fee guidelines governing the provision and payment of medical services designed to assure quality while effectively controlling costs, and Texas Civil Statutes, Article 8308-8.21, which require the commission to establish by rule guidelines relating to the use of medical services by injured employees. sec.134.301. Dental Guideline. The Commission hereby adopts by reference the 1992 Dental Guideline. This Guideline describes covered services under the Texas Workers' Compensation Act. The Guideline shall be effective for dental treatment listed in the Guideline rendered on or after March 1, 1993. Copies of the Guideline may be obtained from the Publications Department of the Texas Workers' Compensation Commission, 4000 South IH-35, Southfield Building, Austin, Texas 78704-7491. 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 January 19, 1993. TRD-9317831 Susan Cory General Counsel Texas Workers' Compensation Commission Effective date: March 1, 1993 Proposal publication date: November 27, 1992 For further information, please call: (512) 440-3592 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part I. General Land Office Chapter 15. Planning Division Procedure for Hearings, Management Plan for the Texas Coast 31 TAC sec.sec.15.1-15.14 The General Land Office adopts the repeal of sec.sec.15.1-15.14, concerning procedure for hearings and a management plan for the Texas coast, without changes to the proposed text as published in the September 15, 1992, issue of the Texas Register (17 TexReg 6354). The General Land Office adopts the repeal of these sections in order to further its policy of reorganizing administrative rules into a more accessible and logical structure by repealing obsolete sections. In addition, the General Land Office does not anticipate a need for separate rules governing hearings on the management plan for the Texas coast. No comments were received regarding adoption of the repeals. The repeals are adopted under the Natural Resources Code, sec.31.051, which provides the commissioner with the authority to make and enforce rules consistent with the law. 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 January 19, 1993. TRD-9317837 Garry Mauro Commissioner General Land Office Effective date: February 9, 1993 Proposal publication date: September 15, 1992 For further information, please call: (512) 463-5007 Hearings Under the Texas Deepwater Port Procedures Act 31 TAC sec.sec.15.21-15.30 The General Land Office adopts the repeal of sec.sec.15.21- 15.30, concerning hearings under the Texas Deepwater Port Procedures Act, without changes to the proposed text as published in the September 15, 1992 issue of the Texas Register (17 TexReg 6354). The General Land Office adopts the repeal of these sections in order to further its policy of reorganizing administrative rules into a more accessible and logical structure by repealing obsolete sections. No comments were received regarding adoption of the repeals. The repeals are adopted under the Natural Resources Code, sec.31.051, which provides the commissioner with the authority to make and enforce rules consistent with the law. 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 January 19, 1993. TRD-9317838 Garry Mauro Commissioner General Land Office Effective date: February 9, 1993 Proposal publication date: September 15, 1992 For further information, please call: (512) 463-5007 Critical Dune Areas 31 TAC sec.sec.15.41-15.46 The General Land Office adopts the repeal of sec.sec.15.41-15.46, concerning critical dune areas, without changes to the proposed text as published in the September 15, 1992, issue of the Texas Register (17 TexReg 6354). The General Land Office adopts the repeal of these sections in order to further its policy of reorganizing administrative rules into a more accessible and logical structure by repealing obsolete sections. The subject matter of these rules will be included in new Chapter 15 of this title (relating to management of the beach/dune system). No comments were received regarding adoption of the repeals. The repeals are adopted under the Natural Resources Code, sec.31.051, which provides the commissioner with the authority to make and enforce rules consistent with the law. 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 January 19, 1993. TRD-9317839 Garry Mauro Commissioner General Land Office Effective date: February 9, 1993 Proposal publication date: September 15, 1992 For further information, please call: (512) 463-5007 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 10. Family Self-Support Services Child Care Management Services Statewide Implementation 40 TAC sec.10.3414, sec.10.3424 The Texas Department of Human Services (DHS) adopts amendments to sec.10. 3414 and sec.10.3424, concerning child care management services statewide implementation. The amendment to sec.10.3414 is adopted with changes to the proposed text as published in the October 9, 1992, issue of the Texas Register (17 TexReg 7047). The amendment to sec.10.3424 is adopted without changes and will not be republished. The amendments are justified to clarify the eligibility exceptions for teen parents needing child care while attending school. The amendments will function by targeting child care services to families most in need and will support the teen's effort to stay in school. The department received six comments favoring adoption of the two amendments. Four additional comments were received regarding the eligible teen parent's age range and eligibility criteria regarding income tax deductions. Comments were received from the Huntsville Independent School District; East Texas Support Services, Inc. in Jasper; Hays Independent School District; The Teenage Parenting Network in Austin; Co-op Pregnancy, Education, and Parenting Program in Crystal City; Austin Families; the Bryan Independent School District; The Child Care Group in Dallas; and the Department of Human Services in San Antonio. The following are the comments, recommendations, and DHS's response to those comments. Comment concerning sec.10.3414: One commentor requested a specific age range be designated for the covered group and to clarify whether the teen parent could receive child care and be an AFDC and/or Food Stamp recipient. Response: A specific age range is defined for teen parents in DHS's Purchase of Service Handbook and will be added to the Child Care Management Services (CCMS) Contractor Manual. Teen parents and their families may be AFDC and/or Food Stamp recipients. Comment concerning sec.10.3414(a)(1)(C): Two commentors were concerned that if the teen parent or the teen's child is claimed as an income tax deduction by her parent she is not eligible for child care and asked for this condition to be deleted. Response: The criterion that the teen's parents do not claim the teen or the teen's child on their income tax as dependents is being deleted. It would pose yet another barrier for low income families with teen parents who are struggling to continue their education and carry out their parental responsibilities. Comment concerning sec.10.3414(a)(1)(C): Two commentors were concerned with the procedure of documenting whether or not parents claimed their teen's child on their income tax. Response: It would be difficult to determine whether or not the teen's child would be claimed as an income tax deduction since the child may have been born after the prior year's taxes were filed. For this additional reason the requirement is being deleted, as stated in the previous response. Comment concerning sec.10.3414(a)(2): One comment was concerned with the vague language and ability to measure an unsuitable home environment. Response: This paragraph is being deleted, as proposed, for the reasons stated by the commentor. In addition, subparagraphs (A),(B), and (C) in sec.10.3414(a)(1) are being deleted to allow low income families with teen parents most in need of child care services to receive those services. In sec.10.3414(a), DHS has deleted paragraph (1) and subparagraphs (A), (B), and (C) as previously proposed in the amendment to sec.10.3414. This deletion was the result of public comment and will function in removing barriers for low income families with teen parents wanting to complete high school or the equivalent who need child care. With the deletion of paragraph (1) of sec.10. 3414(a), DHS has renumbered paragraphs (2) and (3) of that section to become paragraphs (1) and (2). DHS has made minor editorial changes to clarify paragraph (3) of this section. The amendments are adopted under the Human Resources Code, Title 2, Chapters 22 and 44, which authorizes the department to administer public assistance and day care programs. sec.10.3414. Exceptions to Eligibility. (a) The Child Care Management Services (CCMS) contractor grants eligibility exceptions to allow individual families to access services funded by Title XX social services block grant (SSBG), general revenue (GR), and child care and development block grant (CCDBG) funds when funds are available and in the following situations: (1) a teen parent who meets income guidelines needs child care in order to complete high school or the equivalent, but she is ineligible because her parent is not employed or in training. She is permitted to receive child care if her parent (the grandparent) refuses to care for the child; or (2) a child enrolled in child care paid for by the Texas Department of Human Services (DHS) has an eligible sibling living in the same household. The sibling receives preference for enrollment over other children regardless of the sibling's current priority status. (b) (No change.) 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 January 20, 1993. TRD-9317851 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Effective date: April 1, 1993 Proposal publication date: October 9, 1992 For further information, please call: (512) 450-3765