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 4. AGRICULTURE Part I. Texas Department of Agriculture Chapter 21. Seed Certification Standards General Requirements 4 TAC sec.sec.21.1, 21.6, 21.8, 21.9, 21.11, 21.14 The Texas Department of Agriculture (the department) adopts amendments to sec.sec.21.1, 21.6, 21.8, 21.9, 21.11, and 21.14, concerning general requirements for seed certification, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5643). The amendments are adopted in order to clarify the sections and make them more consistent with current practices. The amendments to sec.sec.21.1, 21.8, 21.9, and 21.14 change some terms to be consistent with industry terminology and with the department's designation of field offices. The amendment to sec.21.6 adds a requirement that applicants provide scale maps of field locations and that fields be identified at a point of entry. The amendment to sec.21.11 changes the fee amounts for certification labels to be consistent with those currently charged. The President of Seedco Corporation commented on the proposed amendment to sec.21.6 stating that he supported the provision of scale maps but was opposed to the use of stakes with field identification due to the possibility of the stakes being plowed out or removed prior to field inspection. The department disagrees with these comments because field inspection stakes are used in corn seed and sorghum seed production fields without any problem and their use saves time and money in accurately locating the fields. The amendments are adopted under the Texas Agriculture Code (the Code), sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of the Code; the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board; and the Code, sec.62.008, which provides the department with the authority to fix and collect a fee for issuance of certification labels. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333203 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 Field Inspection Chart 4 TAC sec.21.21 The Texas Department of Agriculture (the department) adopts an amendment to sec.21.21, concerning the number and time of field inspections, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5643). The amendment is adopted to provide updated information on the department's field inspection chart. The amendment provides the title of the chart, the most recent amendment date of the chart, and the current address and phone number for obtaining copies of the chart. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Agriculture Code (the Code), sec.12. 016, which provides the Texas Department of Agriculture with the authority to adopt rules necessary to carry out provisions of the Code; and the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333204 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 Acreage Inspection Fees for Certification 4 TAC sec.21.31 The Texas Department of Agriculture (the department) adopts an amendment to sec.21.31, concerning inspection fees for certification, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5644). The amendment is adopted to update information regarding the department's inspection fee chart and to make the chart more consistent with current practice. The amendment adds existing preplant inspection fees to the acreage inspection fees for certification chart; provides the current address and phone number for obtaining copies of the certification chart; and provides the most recent date of amendment of the chart. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Agriculture Code (the Code), sec.12.016, which provides the Texas Department of Agriculture with the authority to make rules necessary to carry out provisions of the Code; and the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333205 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 Laboratory Analysis Chart 4 TAC sec.21.41 The Texas Department of Agriculture (the department) adopts an amendment to sec.21.41, concerning the minimum amount of seed required for laboratory analysis, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5646). The amendment is adopted in order to update information regarding the department's laboratory analysis chart. The amendment provides the current address and phone number for obtaining copies of the laboratory analysis chart. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Agriculture Code (the Code), sec.12. 016, which provides the Texas Department of Agriculture with the authority to make rules necessary to carry out provisions of the Code; and the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333206 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 Genetic Seed Chart 4 TAC sec.21.51 The Texas Department of Agriculture (the department) adopts an amendment to sec.21.51, concerning genetic seed certification standards, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5646). The amendment is adopted to update information regarding the department's genetic seed chart and to clarify existing procedures in order to comply with State Seed and Plant Board standards. The amendment changes the date the genetic seed chart was amended; corrects the program title; changes the tolerances for nutgrass in certified peanut fields; and adds bahiagrass and guineagrass to place cultivars in the correct category. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Agriculture Code (the Code), sec.12. 016, which provides the Texas Department of Agriculture with the authority to adopts rules as necessary for the administration of the Code; the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board; and the Code, sec.62. 008, which provides the department with the authority to fix and collect a fee for issuance of certification labels. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333207 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 Additional Requirements for the Certification of Certain Crops 4 TAC sec.sec.21.61, 21.64, 21.66 The Texas Department of Agriculture (the department) adopts amendments to sec.sec.21.61, 21.64, and 21.66, concerning additional requirements for the certification of certain crops, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5649). The amendments are adopted in order to make these sections consistent with current practice and to clarify the sections. The amendment to sec.21.61 adds four grasses to be covered by the length of stand requirements, as adopted by the State Seed and Plant Board. The amendment to sec.21.64 clarifies language regarding destruction of plants that are shedding pollen. The amendment to sec.21.66 corrects a typographical error. No comments were received regarding adoption of the amendments. The amendments are adopted under the Texas Agriculture Code (the Code), sec.12.016, which provides the Texas Department of Agriculture with the authority to adopts rules necessary to carry out provisions of the Code; and the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333208 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 Vegetatively Propagated Pasture Grass and Turf Grass (Bermudagrass, St. Augustine, Zoysiagrass, Buffalograss) 4 TAC sec.sec.21.81, 21.83, 21.85, 21.86 The Texas Department of Agriculture (the department) adopts amendments to sec.sec.21.81, 21.83, 21.85, and 21.86, concerning vegetatively propagated pasture grass and turf grass (Bermudagrass, St. Augustinegrass, Zoysiagrass, Buffalograss), without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5650). The amendments are adopted in order to clarify existing procedures and comply with State Seed and Plant Board standards. The amendments add the word Buffalograss to the undesignated head; provide an address change and a new date for filing of applications; and correct the classification of St. Augustinegrass. No comments were received regarding adoption of the amendments. The amendments are adopted under the Texas Agriculture Code (the Code), sec.12.016, which provides the Texas Department of Agriculture with the authority to make rules necessary to carry out provisions of the Code; and the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333209 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 Sugar Cane-Vegetatively Propogated 4 TAC sec.21.101, sec.21.103 The Texas Department of Agriculture (the department) adopts amendments to sec.21.101 and sec.21.103, concerning sugar cane-vegetatively propagated, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5650). The amendments are adopted in order to clarify the sections and provide for more efficient filing procedures. The amendments correct a typographical error and provide an address change for filing applications with the department for inspection of sugar cane acreages. No comments were received regarding adoption of the amendments. The amendments are adopted under the Texas Agriculture Code (the Code), sec.12.016, which provides the Texas Department of Agriculture with the authority to make rules necessary to carry out provisions of the Code; and the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333210 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 Forest Reproductive Material 4 TAC sec.21.122, sec.21.123 The Texas Department of Agriculture (the department) adopts amendments to sec.21.122 and sec.21.123, concerning seed production and seedling production, certified (blue label), and certified selected (green label), without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5650). The amendments are made to provide for more efficient filing procedures. The amendments change the location for filing applications for inspection; and change the time for subsequent inspections. No comments were received regarding adoption of the amendments. The amendments are adopted under the Texas Agriculture Code (the Code), sec.12.016, which provides the Texas Department of Agriculture with the authority to make rules necessary to carry out provisions of the Code; and the Code, Chapter 62, which provides for seed and plant certification in accordance with standards established by the State Seed and Plant Board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333211 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 28, 1993 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-7583 TITLE 16. ECONOMIC REGULATION Part II. Public Utility Commission of Texas Chapter 23. Substantive Rules Rates 16 TAC sec.23.22 The Public Utility Commission of Texas adopts an amendment to sec.23.22, concerning Energy Efficiency Plans, without changes to the proposed text as published in the October 19, 1993, issue of the Texas Register (18 TexReg 7249). Under existing rules, the commission requires certain utilities to file an energy efficiency plan. The commission is consolidating the energy efficiency plan with the load and resource forecast report that is required under sec.23.13(c) of the Commission's rules. The purpose of the change in the filing requirements for the energy efficiency plan is to integrate the load and resources forecast report and energy efficiency plan, which are related to each other, into a single filing, in order to reduce the effort required by utilities in complying with these filing requirements. The commission is developing a rule that would require utilities to file integrated resource plans, which the commission believes will improve the resource planning and licensing processes. The change described above will permit the Staff to concentrate its efforts on the development of such a rule. In addition, any new rule on integrated resource planning will probably incorporate into a single filing many of the requirements in the current rules relating to energy efficiency plans, load and capacity resource forecast filings, and standard avoided-cost calculations. The consolidation of the load and resources forecast report and energy efficiency plan will facilitate the transition to a more integrated regulatory approach. Seven parties filed comments on the proposed rule. All of the commenters either supported the adoption of the rule or stated that they did not oppose its adoption. 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 and enforce rules reasonably required in the exercise of its powers and jurisdiction. The statute affected by the rule is Texas Civil Statutes, Article 1446c, sec.16 and sec.54. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 6, 1993. TRD-9333155 John M. Renfrow Secretary of the Commission Public Utility Commission of Texas Effective date: December 27, 1993 Proposal publication date: October 19, 1993 For further information, please call: (512) 458-0100 Quality of Service 16 TAC sec.23.66 The Public Utility Commission of Texas adopts an amendment to sec.23.66, concerning Arrangements Between Qualifying Facilities and Electric Utilities, without changes to the proposed text as published in the October 19, 1993, issue of the Texas Register (18 TexReg 7250). Under existing rules, the commission requires certain utilities to file a calculation of the cost of a generating unit that could be avoided or deferred, if power from a qualifying facility were purchased instead. The commission is deferring the filing of calculations of Standard Avoided Costs for one year. The purpose of the change in the filing requirements for the standard avoided cost calculation is to reduce the effort required by the Staff of the commission in reviewing these filings and participating in docketed avoided-cost proceedings. The commission is developing a rule that would require utilities to file integrated resource plans, which the commission believes will improve the resource planning and licensing processes. The change described above will permit the Staff to concentrate its efforts on the development of such a rule. In addition, any new rule on integrated resource planning will probably incorporate into a single filing many of the requirements in the current rules relating to energy efficiency plans, load and capacity resource forecast filings, and calculation of marginal costs of a utility. One of the issues that is likely to be addressed in a commission rule on integrated resource planning is whether there is a need for administrative proceedings to determine a utility's avoided-cost. The delay in the filing of avoided-cost calculations is not intended to resolve this question one way or the other. If the commission concludes that administratively determined avoided costs are essential, it is likely that some utilities will be required to file a resource plan and avoided cost calculation for commission approval in late 1994 or early 1995. The commission might also conclude that administratively determined avoided costs are not essential and eliminate the filing of an avoided cost as a separate filing requirement. Six parties filed comments on the proposed rule. All of the commenters either supported the adoption of the rule or stated that they did not oppose its adoption. 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 and enforce rules reasonably required in the exercise of its powers and jurisdiction. The statute affected by the rule is Texas Civil Statutes, Article 1446c, sec.16 and sec.54. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 6, 1993. TRD-9333156 John M. Renfrow Secretary of the Commission Public Utility Commission of Texas Effective date: December 27, 1993 Proposal publication date: October 19, 1993 For further information, please call: (512) 458-0100 TITLE 22. EXAMINING BOARDS Part IX. Texas State Board of Medical Examiners Chapter 188. Complaint Procedure Notification 22 TAC sec.188.1 The Texas State Board of Medical Examiners adopts new sec.188.1, with changes to the proposed text as published in the October 19, 1993, issue of the Texas Register (18 TexReg 7279). The new section was mandated by Senate Bill 1062, 73rd Legislature. The section will function by requiring physicians to post the board's address and phone number in their office, on letterhead, or on billing statements to enable consumers to know to whom they should direct complaints regarding physicians, physician assistants, and acupuncturists, as well as other licensees and registrants of the Texas State Board of Medical Examiners. One written comments was made by Texas Osteopathic Medical Association, but later withdrawn during the public hearing. The new section is adopted under Texas Civil Statutes, Article 4495b, which provide the Texas State Board of Medical Examiners with the authority to make rules, regulations, and bylaws not inconsistent with this act as may be necessary for the governing of its own proceedings, the performance of its duties, the regulation of the practice of medicine in this state, and the enforcement of this act. The adopted new section implements Texas Civil Statutes, Article 4495b, sec.2.09(s)(2). sec.188.1. Complaint Procedure Notification. (a) Methods of Notification. Pursuant to the Medical Practice Act ("the Act"), Article 4495b, sec.2.09(s)(2), for the purpose of directing complaints to the board, the board and its licensees shall provide notification to the public of the name, mailing address, and telephone number of the board by one or more of the following methods: (1) displaying in a prominent location at their place of business, signs in English and Spanish of no less than 8-1/2 by 11 inches in size with the board- approved notification statement printed in black on a white background in type no smaller than standard 24-point Times Roman print; or (2) placing the board-approved notification statement printed in English and Spanish in black type no smaller than standard 10-point, 12-pitch typewriter print on each bill for services; or (3) placing the board-approved notification statement printed in English and Spanish in black type no smaller than standard 10-point, 12-pitch typewriter print on each registration form, application, or written contract for services. (b) Approved English Notification Statement. The following notification statement in English is approved by the board for purposes of these rules and the Act, sec.2.09(s)(2): [graphic] (c) Approved Spanish Notification Statement. The following notification statement in Spanish is approved by the board for purposes of these rules and the Act, sec.2.09(s)(2). [graphic] (d) Following are samples of the type print references in subsection (a) of this section. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 3, 1993. TRD-9333047 Bruce A. Levy, M.D., J.D. Executive Director Texas State Board of Medical Examiners Effective date: December 24, 1993 Proposal publication date: October 19, 1993 For further information, please call: (512) 834-7728, Ext. 402 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 7. Corporate and Financial Regulation Subchapter B. Insurance Holding Company System Regulatory Act 28 TAC sec.sec.7.201, 7.202, 7.205, 7.210 The Texas Department of Insurance adopts amendments to sec.sec.7.201, 7.202, 7.205, and 7.210, concerning administrative regulation under the Insurance Code, Article 21.49-1, the Insurance Holding Company System Regulatory Act (the Act). The amendment to sec.7.202 is adopted with changes to subsection (a) (7)(A) and (B) to the proposed text as published in the October 29, 1993, issue of the Texas Register (18 TexReg 7522). Amendments to sec.sec.7.201, 7.205, and 7.210 are adopted without changes and will not be republlished. The purposes of the newly adopted amendments include: providing standards for acquisition of control of a property and casualty insurer by a controlling producer, in order to prevent adverse impact to policyholders; and preventing insolvency of producer controlled property and casualty insurers. These purposes would be achieved through the newly adopted amendments by requiring arms-length conduct between property and casualty insurers and controlling broker affiliates, that is, controlling producers. As defined in the rule, controlling producers are essentially what would commonly be denominated "brokers" who control an insurer. Brokers by definition are out-of-state entities, because brokers represent insureds, and such representation within Texas is not permitted under the Insurance Code. The term "controlling producer" in the amendments is not intended to include an agent or any independent agent acting on behalf of the controlled insurer, pursuant to the Insurance Code, Chapter 21, Subchapter A, or any subagent or representative of the agent, who acts as such in the solicitation of, negotiation for, or procurement or making of an insurance contract, if the agent is not also acting in the capacity of an insurance broker in the transaction in question. The term "controlling producer" in the amendments is not intended to include an attorney in fact acting on behalf of a licensed Lloyd's association or licensed reciprocal or interinsurance exchange. The potential that a broker might misuse an insurer controlled by the broker arises from the conflict of interest inherent in those two roles. That is, when a broker owns and controls an insurer, the broker's duty to its client -- the prospective insured -- conflicts with the broker's financial interest in the insurer. A conflict of interest may arise when a broker, representing the prospective insured and having the main goal of generating income and profit through premium production, also controls the rates which are set for those premiums. Thus the broker's position of control permits it to set artificially low rates, which serve as incentive to insureds to buy insurance and thus facilitate greater premium production by the broker. Yet such rates ultimately may be inadequate to sustain the insurer's financial viability. To alleviate the conflict of interest, the amendments require that a broker, which acquires an insurer operating in Texas, conduct business with the insurer in essentially an arms-length manner. Section 7.202(a)(7)(A) as published in the October 29, 1993 issue of the Texas Register (18 TexReg 7522) has been changed to correct an inadvertent error to read paragraph "(4)" instead of "(5)." The term "control" as intended in the context of (A) is defined in paragraph "(4)." Section 7.202(a)(7)(B) as published in the October 29, 1993 issue of the Texas Register (18 TexReg 7522) has been changed by adding "or interinsurance" to the last sentence between "reciprocal" and "exchange." This change is made to conform with the term used in the Insurance Code, Chapter 19, and clarifies that the term "producer" or "controlling producer" is not intended to include a licensed reciprocal or interinsurance exchange. The newly adopted amendments to sec.7.201 make necessary technical corrections by changing the title of the Holding Company Division to the Holding Company Activity and by changing the mail code for the Holding Company Activity. The newly adopted amendments to sec.7.202 redefine Commissioner in sec.7.202(a)(3) and provide a definition for controlling producer in sec.7.202(a) (7). The newly adopted amendments to sec.7.205 provide that an acquisition of control of a property and casualty insurer by a controlling producer is subject to the Act, sec.5; set forth certain requirements for controlling producers; and make conforming changes to the sanction provision set forth in an amendment to Article 21.49-1, sec.5(k), enacted by passage of House Bill 1461, 73rd Legislature, 1993. The amendment to sec.7.210 provides for certain additional disclosure requirements. Comment: Three commenters favored adoption of the amendments to sec.sec.7. 201- 7.202, 7.205, and 7.210 as proposed. There were no comments against adoption of the amendments as proposed. One commenter stated that an "arms-length" relationship allows for maximum protection to policyholders as the truly "independent" agent is allowed to fulfill his fiduciary duty to insureds of obtaining quality insurance coverage at competitive prices. In addition, the commenter pointed out that requiring producer controlled insurers to operate on an arms-length basis with controlling broker affiliates allows for competitive market dynamics to operate freely and without distortion. The commenter stated that the elimination of unreasonably low pricing and ultimate prevention of insolvency caused by distorted pricing protects insurers and policyholders alike and helps to support the required qualities of a healthy insurance market, reasonably priced competitive insurance premiums, predictable and reliable insurance capacity and reduced guaranty fund costs. One commenter expressed agreement with and support for the amendments as proposed. One commenter stated that adoption of the amendments to the rules supports solvency regulation and indicates a proactive approach by the Texas Department of Insurance to solvency monitoring. Response: The Department agrees with the comments. During the comment period, comments were received by three sources, all in favor of the amendments to the rules as proposed. The Texas Department of Insurance received a written comment from Millers Group, representing the Millers Mutual Fire Insurance Company of Texas, the Millers Casualty Insurance Company of Texas, and the Millers Life Insurance Company of Texas. The Texas Department of Insurance received a request for a public hearing from the Texas Legal Reserve Officials Association, a trade association composed of Texas domiciled life, health and accident insurance companies. The Texas Legal Reserve Officials Association notified the Texas Department of Insurance that it would submit comments concerning the proposed rules by subsequent letter. The Texas Legal Reserve Officials Association made no comments by subsequent letter but appeared and spoke at the public hearing through its representative. The American General Group, through its representative, appeared and spoke at the public hearing on behalf of its affiliated companies. The amendments are adopted pursuant to the Insurance Code, Articles 21.49-1, 1.03A, and 1.04C; and the Government Code, sec.sec.2001.004-2001.038. The Insurance Code, Article 21.49-1, constitutes the Insurance Holding Company System Regulatory Act (the Act). The Insurance Code, Article 21.49-1 sec.11, authorizes the Commissioner to issue such rules, regulations, and orders as shall be consistent with and shall carry out the provisions of the Act and to govern the conduct of its business and proceedings under the Act. The Insurance Code, Article 1.03A, authorizes the Commissioner to adopt rules for the conduct and execution of the duties and functions of the department only as authorized by statute for general and uniform application. The Insurance Code, Article 1.04C, provides that the Commissioner shall develop and implement policies that provide the public with a reasonable opportunity to appear before the Commissioner and to speak on any issue under the jurisdiction of the Commissioner. The Government Code, sec.sec.2001.004-2001.038, authorizes and requires each state agency to adopt rules of practice setting forth the nature and requirements of available procedures and to prescribe the procedures for adoption of rules by a state administrative agency. sec.7.202. Definitions. (a) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1)-(2) (No change.) (3) Commissioner-The Commissioner of Insurance of the State of Texas or the Commissioner's associates or deputies, as appropriate. (4) Control-The term "control" including the terms "controlling," "controlled by" and "under common control with," means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, or with members of the person's immediate family, owns, controls, or holds with the power to vote, or if any person other than a corporate officer or director of a person holds proxies representing, 10% or more of the voting securities or authority of any other person, or if any person by contract or agreement is designated as an attorney-in-fact for a Lloyd's plan insurer under the Insurance Code, Article 18.02, or for a reciprocal or interinsurance exchange under the Insurance Code, Articles 19.02 and 19.10. This presumption may be rebutted by a showing made in the manner provided by the Act, sec.3(j), that control does not exist in fact and that the person rebutting the presumption is in compliance with the Act, sec.5(a)-(c) . The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect, where a person exercises directly or indirectly either alone or pursuant to an agreement with one or more other persons such a controlling influence over the management or policies of an authorized insurer as to make it necessary or appropriate in the public interest or for the protection of the policyholders of the insurer that the person be deemed to control the insurer. (5) Controlled insurer-An insurer controlled directly or indirectly by a holding company (as a holding company is defined in this section). (6) Controlled person-Any person, other than a controlled insurer, who is controlled directly or indirectly by a holding company (as a holding company is defined in this section). (7) Controlling producer-An insurance broker or brokers or any person, firm, association or corporation domiciled, licensed, or operating in a state other than Texas, when, for any compensation, commission or other thing of value, such person, firm, association or corporation acts or aids in any manner in soliciting, negotiating or procuring the making of any insurance contract on behalf of an insured other than such person, firm, association or corporation, and who, directly or indirectly: (A) controls or seeks to control a property and casualty insurer as the term control is defined in paragraph (4) of this subsection; and (B) writes or places, in any calendar year, an aggregate amount of gross written premiums with such controlled property and casualty insurer which is equal to or greater than 5.0% of the admitted assets of such insurer as reported in such insurer's quarterly statement filed as of September thirtieth of the prior year. The term "producer" or "controlling producer" as used in these sections is not intended to include an agent or any independent agent acting on behalf of the controlled insurer, licensed pursuant to the Insurance Code, Chapter 21, Subchapter A, and any subagent or representative of the agent, who acts as such in the solicitation of, negotiation for, or procurement or making of an insurance contract, if the agent is not also acting on behalf of an insured as set forth in paragraph (7) of this subsection, in the transaction in question. The term "producer" or "controlling producer" as used in these sections is not intended to include an attorney-in-fact acting on behalf of a licensed Lloyds or licensed reciprocal or interinsurance exchange. (8)-(19) (No change.) (b) Exemption. Certain insurance holding company systems of the type specified in the Act, sec.2(r), may be exempted or partially exempted from the Act and these sections in the manner provided in the Act, sec.2(r). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 3, 1993. TRD-9333064 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: December 24, 1993 Proposal publication date:October 29, 1993 For further information, please call:(512) 463-6327 Title 34. PUBLIC FINANCE Part I. Comptroller of Public Accounts Chapter 3. Tax Administration Subchapter O. State Sales and Use Tax 34 TAC sec.3.285 The Comptroller of Public Accounts adopts an amendment to sec.3.285, concerning resale certificate; sales for resale, without changes to the proposed text as published in the October 8, 1993, issue of the Texas Register (18 TexReg 6926). The Tax Code, sec.151.707, was amended effective September 1, 1993, setting out specific penalties for intentionally or knowingly issuing invalid resale certificates. The amendment states those penalties. 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 December 6, 1993. TRD-9333191 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: December 28, 1993 Proposal publication date: October 8, 1993 For further information, please call: (512) 463-4028 34 TAC sec.3.287 The Comptroller of Public Accounts adopts an amendment to sec.3.287, concerning exemption certificates, without changes to the proposed text as published in the October 8, 1993, issue of the Texas Register (18 TexReg 6930). The Tax Code, sec.151.707, was amended effective September 1, 1993, setting out specific penalties for intentionally or knowingly issuing invalid exemption certificates. The amendment states those penalties. 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 December 6, 1993. TRD-9333190 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: December 28, 1993 Proposal publication date: October 8, 1993 For further information, please call: (512) 463-4028 34 TAC sec.3.296 The Comptroller of Public Accounts adopts an amendment to sec.3.296, concerning agriculture, animal life, feed, seed, plants, and fertilizer, without changes to the proposed text as published in the October 8, 1993, issue of the Texas Register (18 TexReg 6934). The amendment provides an exemption for tangible personal property installed as a part of an underground irrigation system on farms and ranches. The amendment is the result of a change in the Tax Code, Chapter 151, that is effective September 1, 1993. 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 December 6, 1993. TRD-9333189 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: December 28, 1993 Proposal publication date: October 8, 1993 For further information, please call: (512) 463-4028 34 TAC sec.3.297 The Comptroller of Public Accounts adopts an amendment to sec.3.297, concerning carriers, without changes to the proposed text as published in the October 8, 1993, issue of the Texas Register (18 TexReg 6936). Nonsubstantive changes were made to the Texas Aircraft Exemption Certificate, which the rule adopts by reference. A change to the Tax Code, sec.151.328, provides a new procedure for claiming a sales tax exemption when purchasing an aircraft for registration and use outside Texas. The amendment sets out the new procedure and exemption certificate for claiming the exemption. The Tax Code changes are effective October 1, 1993. 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 December 6, 1993. TRD-9333188 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: December 28, 1993 Proposal publication date: October 8, 1993 For further information, please call: (512) 463-4028 Subchapter P. Municipal Sales and Use Tax 34 TAC sec.3.379 The Comptroller of Public Accounts adopts an amendment to sec.3.379, concerning contractors, without changes to the proposed text as published in the October 8, 1993, issue of the Texas Register (18 TexReg 6937). The amendment incorporates changes made to the Tax Code, Chapter 151, regarding items that may be purchased tax free and items upon which tax is due when improving realty for exempt organizations. 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 December 6, 1993. TRD-9333186 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: December 28, 1993 Proposal publication date: October 8, 1993 For further information, please call: (512) 463-4028 Subchapter R. Transit Sales and Use Tax 34 TAC sec.3.429 The Comptroller of Public Accounts adopts an amendment to sec.3.429, concerning contractors, without changes to the proposed text as published in the October 8, 1993, issue of the Texas Register (18 TexReg 6938). The amendment incorporates changes made to Tax Code, Chapter 151, regarding items that may be purchased tax free and items upon which tax is due when improving realty for exempt organizations. 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 December 6, 1993. TRD-9333185 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: December 28, 1993 Proposal publication date: October 8, 1993 For further information, please call: (512) 463-4028 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part VII. Texas Commission on Law Enforcement Officer Standards and Education Chapter 211. Administrative Division 37 TAC sec.211.77 The Texas Commission on Law Enforcement Officer Standards and Education adopts an amendment to sec.211.77, concerning the establishment and maintenance of minimum training standards for peace officers, with changes to the proposed text as published in the October 26, 1993, issue of the Texas Register (18 TexReg 7467). The amendment provides for a standards-based curriculum program for peace officers. The amendment was adopted at the December 2, 1993, regular quarterly Commission meeting as Final Order 93-1. The changes are the addition of verbiage to subsection (c) to clarify the type of exam to be administered, and a change of the effective date for subsection (c) as amended to January 1, 1994. The following are comments received regarding adoption of the proposal. A written comment was received from Leon Charpentier, Senior Instructor, Reserve Police Academy, Central Texas College, Kileen, requesting that the Commission continue the practice of breaking the curriculum into three parts at the same time that the Commission approves the 560-hour new Basic Peace Officer Curriculum so the courses can be run in a very feasible and economical manner. An oral comment was received from Frank Knapp, Assistant Attorney General, General Council Division, recommending that the Commission clarify the type of exam to be administered for applicants trained out-of-state. The amendment is adopted under the Texas Government Code, Chapter 415, sec.415.010(1) and (9), which provides the Texas Commission on Law Enforcement Officer Standards and Education with the authority to pass rules for the administration of Chapter 415, and under the Texas Government Code, Chapters 2001 and 2002, which taken together establish the procedures for the rulemaking requirements for the Commission. sec.211.77. Minimum Training Standards for Peace Officers. (a) The minimum training standards for permanent licensing as a peace officer on and after September 1, 1994, shall be either: (1) completion of the 560-hour basic peace officer course; (2) successful completion of the college-level law enforcement courses, which are known as the criminal justice transfer curriculum with law enforcement emphasis and the Texas peace officer sequence; (3) completion of any specifically required supplementary or remedial training; or (4) credit for any sufficient previous training which is equivalent to the Basic Course. (b) The commission may, through its executive director, review documentation of previous training submitted by a potential license applicant or an appointing agency and may then either: (1) accept that training as equivalent to any training required under the current commission standards; or (2) require specific supplementary or remedial training necessary to equate the previous training to those current standards. (c) If the previous training is out-of-state, the applicant may challenge the state license exam referred to in sec.211.74 of this title (relating to State Examinations) once. If challenged and passed, the license will be issued. If failed, the applicant may not be retested until successful completion of a supplementary peace officer training course in addition to any out-of-state training which may have been credited. If after the supplemental training the state license exam is failed three times, the applicant may not be retested until successful completion of the entire current basic course for a peace officer. (d) The basic peace officer course shall consist of a minimum of 560 hours of instruction, covering the subjects and taught in accordance with the current instructor guides provided by the commission. (e) To be acceptable under this section, the transfer curriculum courses and the Texas peace officer sequence courses shall be taught in accordance with the current guidelines and illustrative transfer course outlines provided by the Texas Higher Education Coordinating Board, and the requirements of the Basic Course of the commission. For purposes of this section, the term, "successful completion" shall, when applied to an academic course, mean a passing grade from an academic institution of either: (1) C or better, unless the course is only offered pass/fail; or (2) Pass, in a course only offered pass/fail by the institution. (f) The college-level law enforcement courses shall be the transfer curriculum courses and the Texas peace officer sequence courses which complete the topics and objectives of the Basic Course not credited to the transfer curriculum. (g) On and after January 1, 1989, an applicant for a permanent peace officer license who has met the minimum training standards for peace officers must pass the required state licensing examination before two years have elapsed after meeting those standards. An individual upon successful completion of the Basic Course or who has otherwise met the requirements of this section shall be issued an endorsement of eligibility and be allowed to sit for the state licensing exam. (h) The effective date of this section shall be January 1, 1989; the effective date of subsection (c) of this section is January 1, 1994; the effective date of subsections (a), and (d)-(h) of this section is September 1, 1994. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 6, 1993. TRD-9333105 Fred Toler Interim Executive Director Texas Commission on Law Enforcement Officer Standards and Education Effective date: January 1, 1994 Proposal publication date: October 26, 1993 For further information, please call: (512) 406-3613 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 12. Special Nutrition Programs Child and Adult Care Food Program 40 TAC sec.sec.12.14, 12.15, 12.26 The Texas Department of Human Services (DHS) adopts amendments to sec.sec.12.14, 12.15, 12.26, 12.115, 12.123, 12.204, 12.304, and 12.404, without changes to the proposed text as published in the October 29, 1993, issue of the Texas Register (18 TexReg 7526). The justification for the amendments is to establish a duration of two hours for breakfasts served in day care homes that are eligible to participate in the CACFP. The amendments also provide contractors in the CACFP, the SFSP, the SMP, the SBP, and the NSLP the option of requesting an exception to the regulation that prohibits payment of a claim submitted more than 60 days after the end of a claim month, once every 36 months. The amendment will function by simplifying program administration with no reduction in program integrity. No comments were received regarding adoption of the amendment. The amendments are adopted under the Human Resources Code, Title 2, Chapters 22 and 33, which provides the department with the authority to administer public and nutritional assistance programs. The amendments implement the Human Resources Code, sec.sec.22.001-22.024 and sec.sec.33.001-33. 024. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 8, 1993. TRD-9333261 Nancy Murphy Section Manager, Policy and Document Support Texas Department of Human Services Effective date: January 1, 1994 Proposal publication date: October 29, 1993 For further information, please call: (512) 450-3765 Summer Food Service Program 40 TAC sec.12.115, sec.12.123 The amendments are adopted under the Human Resources Code, Title 2, Chapters 22 and 33, which provides the department with the authority to administer public and nutritional assistance programs. The amendments implement the Human Resources Code, sec.sec.22.001-22.024 and sec.sec.33.001-33. 024. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 8, 1993. TRD-9333262 Nancy Murphy Section Manager, Policy and Document Support Texas Department of Human Services Effective date: January 1, 1994 Proposal publication date: October 29, 1993 For further information, please call: (512) 450-3765 Special Milk Program 40 TAC sec.12.204 The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 33, which provides the department with the authority to administer public and nutritional assistance programs. The amendment implements the Human Resources Code, sec.sec.22.001-22.024 and sec.sec.33.001-33. 024. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 8, 1993. TRD-9333263 Nancy Murphy Section Manger, Policy and Document Support Texas Department of Human Services Effective date: January 1, 1994 Proposal publication date: October 29, 1993 For further information, please call: (512) 450-3765 School Breakfast Program 40 TAC sec.12.304 The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 33, which provides the department with the authority to administer public and nutritional assistance programs. The amendment implements the Human Resources Code, sec.sec.22.001-22.024 and sec.sec.33.001-33. 024. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 8, 1993. TRD-9333264 Nancy Murphy Section Manager, Policy and Document Support Texas Department of Human Services Effective date: January 1, 1994 Proposal publication date: October 29, 1993 For further information, please call: (512) 450-3765 National School Lunch Program 40 TAC sec.12.404 The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 33, which provides the department with the authority to administer public and nutritional assistance programs. The amendment implements the Human Resources Code, sec.sec.22.001-22.024 and sec.sec.33.001-33. 024. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 8, 1993. TRD-9333265 Nancy Murphy Section Manager, Policy and Document Support Texas Department of Human Services Effective date: January 1, 1994 Proposal publication date: October 29, 1993 For further information, please call: (512) 450-3765 Texas Rehabilitation Commission Chapter 102. Texas Rehabilitation Advisory Council 40 TAC sec.sec.102.1-102.5 The Texas Rehabilitation Commission (TRC) adopts new sec. sec.102.1-102.5, concerning Texas Rehabilitation Advisory Council. The new rules are adopted without changes to the proposed text as published in the October 26, 1993, issue of the Texas Register (18 TexReg 7468). The justification for the new rule is that it has been mandated by sec.105 of the Rehabilitation Council of 1973, as amended, which requires to review, analyze, and advise the Commission regarding performance, particularly with respect eligibility; the extent, scope, and effectiveness of services; and the functions of the Texas Rehabilitation Commission. The new rule will function by providing for the composition and appointment of the Council, its functions, and resources. No comments were received regarding adoption of the new rules. The new rules are adopted under the Human Resources Code, Title 7, sec.111. 018, which provides the Texas Rehabilitation Commission with the authority to make regulations governing personnel standards; the protection of records and confidential information; the manner and form of filing applications; eligibility, investigation, and determination for rehabilitation and other services; procedures for hearings; and other regulations subject to this section; as necessary to carry out the purposes of this chapter. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 6, 1993. TRD-9333119 Charles W. Schiesser Associate Commissioner for Legal Services Division Texas Rehabilitation Commission Effective date: December 27, 1993 Proposal publication date:October 26, 1993 For further information, please call: (512) 483-4051 Chapter 103. Vocational Rehabilitation Services Program 40 TAC sec.103.7 The Texas Rehabilitation Commission (TRC) adopts an amendment to sec.103.7, concerning Mental Restoration Services, without changes to the proposed text as published in the November 2, 1993, issue of the Texas Register (18 TexReg 7918). The justification for the amendment is to conform to the Health and Human Services Commission Coordinated Strategic Plan by providing quality services to clients. The amendment will function by emphazing the Texas Rehabilitation Commission's commitment to provide quality services to clients of the agency. No comments were received regarding adoption of the amendment. The amendment is adopted under the Human Resources Code, Title 7, which provides the Texas Rehabilitation Commission with the authority to make regulations governing personnel standards; the protection of records and confidential information; the manner and form of filing applications; eligibility, investigation, and determination for rehabilitation and other services, procedures for hearings; and other regulations subject to this section; as necessary to carry out the purposes of this chapter. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 7, 1993. TRD-9333197 Charles W. Schiesser Associate Commissioner for Legal Services Texas Rehabilitation Commission Effective date: December 28, 1993 Proposal publication date: November 2, 1993. For further information, please call: (512) 483-4051 Texas Department of Insurance Exempt Filing Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L (Editor's Note: As required by the Insurance Code, Article 5.96 and 5. 97, the Texas Register publishes notices of actions taken by the Department of Insurance pursuant to Chapter 5, Subchapter L, of the Code. Board action taken under these articles is not subject to the Administrative Procedure Act. These actions become effective 15 days after the date of publication or on a later specified date. The text of the material being adopted will not be published, but may be examined in the offices of the Department of Insurance, 333 Guadalupe, Austin.) The State Board of Insurance of the Texas Department of Insurance, at a public hearing held at 9:00 a.m., on November 17, 1993, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street, Austin, Texas, in Docket Number 2069, adopted an amendment to the Texas Automobile Insurance Plan of Operation. The Insurance Code, Article 21.81 (new article established by House Bill 1461) mandates the creation of a competitive limited assignment distribution (LAD) to be in place not later than December 31, 1993. House Bill 1461, sec.14.09(b), directs the Texas Automobile Insurance Plan (TAIP) to continue to operate in accordance with Texas Civil Statutes, Article 6701h, sec.35, the Texas Motor Vehicle Safety-Responsibility Act, as it existed immediately before the effective date of the Act until the Texas Automobile Insurance Plan Association established in the Act is operational. Because Article 6701h, prior to September 1, 1993, required Board approval of the Plan amendments, TAIP sought the Board's approval of this amendment. However, because House Bill 1461, sec.1.23, provides that on September 1, 1993, the effective date of the Act, the Commissioner of Insurance shall assume authority over all areas of activity of the Texas Department of Insurance except rate and policy form authority, TAIP also sought approval of the Commissioner. Notice of the petition (Reference Number A-0993-22) was published in the October 8, 1993 issue of the Texas Register (18 TexReg 6948). Under the amendment, in return for the payment of a fee, a LAD Servicing Carrier assumes all automobile assigned-risk responsibility for another company, called the Excused Company. The amended LAD program permits the Excused Company and LAD Servicing Carrier to negotiate the LAD fee and other contractual matters, subject to minimum contract requirements established by TAIP's Governing Committee. The amendment covers the eligibility requirements for a servicing carrier, the LAD agreement, assignments and quotas, renewal and non- renewal provisions, and assessments. The State Board of Insurance has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.96, 5.98, and 21.81. The amendment as adopted by the State Board of Insurance is shown in the exhibit which is filed with the Chief Clerk under Reference Number A-0993-22, and is incorporated by reference by Board Order Number 60583 Consistent with the Insurance Code, Article 5.96(h), prior to the effective date of this action, the Board will notify all insurers writing automobile insurance. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Administrative Procedure Act. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 8, 1993. TRD-9333268 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: December 31, 1993 For further information, please call: (512) 463-6328 The State Board of Insurance of the Texas Department of Insurance at a public hearing at 9:00 a.m., December 2, 1993, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas, adopted the proposal filed by the staff of the Workers' Compensation Division of the Texas Department of Insurance concerning a new Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance, 1994 Edition. The revisions were proposed in a petition (Reference Number W-1093-26-I) filed by the staff on October 27, 1993, and summarized in the November 2, 1993, issue of the Texas Register (18 TexReg 7920). The adopted version combines the Texas Basic Manual of Rules, Classifications, and Rates for Workers' Compensation and Employers' Liability Insurance and the Texas Experience Rating Plan Manual into one manual entitled Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance, 1994 Edition. The 1994 manual revisions include but are not limited to editorial changes necessary because the State Board of Insurance no longer sets Workers' Compensation rates; retains interstate rating and allows for downward negotiation of an interstate modifier as it applies to the Texas exposure of a multistate insured; amends various classification footnotes due to changes adopted to the classification system; limits the application of initial and renewal experience modifiers when calculated during the applicable policy period; allows for calculation of a contingent modifier based on experience available at the time of calculation of the experience modifier; eliminates short rate cancellation; amends of definition and application of anniversary rate date; editorial changes due to House Bill 1461 (maintenance tax) and House Bill 456 (employee leasing); elimination of loss constant; elimination of three year fixed rate policy; amends various minimum premium charges for additional coverages to optional charges subject to maximum amounts; amends ownership rules to allow certain asset purchases to be considered change in ownership; and amends various miscellaneous values and payroll limitations. The State Board of Insurance has adopted this matter pursuant to the Insurance Code, Articles 5.96 and 5.60. The Board adopted the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance, 1994 Edition, attached hereto and incorporated by reference, by Board Order Number 60584. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Administrative Procedure Act. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 8, 1993. TRD-9333269 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: January 1, 1994 For further information, please call: (512) 463-6328