Adopted Sections An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 1. ADMINISTRATION Part II. Texas Ethics Commission Chapter 6. Internal Operations Subchapter A. Commission Meeting Rules 1 TAC sec.sec.6.1-6.12, 6.31-6.35, 6.71, 6.81 The Texas Ethics Commission adopts the repeal of sec. sec.6.1-6.12, 6.31-6.35, 6.71, and 6.81, concerning internal operations and commission meeting rules. The repeals are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 6995). These sections are being replaced by a more comprehensive recodification of commission rules, resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate, adopt, and repeal rules concerning the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333516 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 6. Organization and Administration Subchapter A. General Rules 1 TAC sec.sec.6.1, 6.3, 6.5, 6.7, 6.9 The Texas Ethics Commission adopts new sec.sec.6.1, 6.3, 6.5, 6.7, and 6.9, concerning the organization and administration of the commission. Section 6.1 is adopted with changes, and sec.sec.6.3, 6.5, 6.7, and 6.9 are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 6995). The new sections define words and phrases used in rules adopted by the commission; and provide guidance as to the purpose and construction of commission rules; they generally describe the powers, organization, and operation of the commission; establish procedures followed by the commission in scheduling and holding its meetings and public hearings held in connection with rule-making activities; and establish procedures and charges for obtaining documents and other services provided by the commission for which a fee is imposed. The new sections will set forth basic guidelines for the orderly processing and administration of the Texas Ethics Commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.6.1. Definitions. The following words and terms, when used in Part II, shall have the following meanings, unless the context clearly indicates otherwise. Act-The Government Code, Chapter 571 (relating to Texas Ethics Commission). Administrative Procedure Act-The Government Code, Chapter 2001 (relating to Administrative Procedure). Agency-The state agency governed by the commission, as it functions and operates through the administrative staff hired by the commission and its executive director. Agency office-The offices of the agency located at 1101 Camino La Costa, Austin, Texas 78752; with a mailing address of P.O. Box 12070, Austin, Texas 78711. Commission-The Texas Ethics Commission, as constituted and described in the Texas Constitution, Article 3, sec.24a. Document-A report, complaint, response, letter, or any other written material. Executive Director -The person employed by the commission to serve as the agency's chief administrative officer, or any other employee of the commission acting as the designee of the executive director. Family member or relative-An individual who is related within the second degree of affinity or consanguinity, as defined by the Government Code, Chapter 573, Subchapter B (relating to Relationships by Consanguinity or by Affinity). Filer-A person required to file a report with the commission or a local filing authority in accordance with this title. Individual-A human being who has been born and is alive. Local filing authority-A public servant other than the Texas Ethics Commission with whom a filer must file a report in accordance with this title, as identified in sec.20.5 of this title (relating to Reports Filed with a County Filing Authority) and sec.20.7 of this title (relating to Reports Filed with Other Local Filing Authority). Open Meetings Law-The Government Code, Chapter 551 (relating to Open Meetings). Open Records Law-The Government Code, Chapter 552 (relating to Open Records). Person-An individual, representative, corporation, association, or other entity, including any non-profit corporation, or any agency or instrumentality of federal, state, or local government. Postmark-A postal cancellation by the United States Postal Service that contains the post office name, state, and zip code and the month, day, and year the canceling post office accepted custody of the material. Presiding officer -The person elected to serve as the commission's chairman or chairwoman under sec.6.21 of this title (relating to Officers of the Commission). Report-Any document or other information required to be filed under this title. Staff-Employees of the commission, hired by the commission or the executive director. Title 15-The Election Code, Title 15 (relating to Regulating Political Funds and Campaigns). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333544 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter B. Officers and Employees of the Commission 1 TAC sec.sec.6.21, 6.23, 6.25 The Texas Ethics Commission adopts new sec.sec.6.21, 6.23, and 6.25, concerning the organization and administration of the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 6997). The new sections define words and phrases used in rules adopted by the commission; and provide guidance as to the purpose and construction of commission rules; they generally describe the powers, organization, and operation of the commission; establish procedures followed by the commission in scheduling and holding its meetings and public hearings held in connection with rule-making activities; and establish procedures and charges for obtaining documents and other services provided by the commission for which a fee is imposed. The new sections will set forth basic guidelines for the orderly processing and administration of the Texas Ethics Commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333543 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Commission Meetings 1 TAC sec.sec.6.31, 6.33, 6.35, 6.37, 6.39, 6.41, 6.43, 6.45, 6. 47 The Texas Ethics Commission adopts new sec.sec.6.31, 6.33, 6.35, 6.37, 6.39, 6.41, 6.43, 6.45, and 6.47, concerning the organization and administration of the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 6998). The new sections define words and phrases used in rules adopted by the commission; and provide guidance as to the purpose and construction of commission rules; they generally describe the powers, organization, and operation of the commission; establish procedures followed by the commission in scheduling and holding its meetings and public hearings held in connection with rule-making activities; and establish procedures and charges for obtaining documents and other services provided by the commission for which a fee is imposed. The new sections will set forth basic guidelines for the orderly processing and administration of the Texas Ethics Commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333542 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter D. Rulemaking Procedures 1 TAC sec.6.61, sec.6.63 The Texas Ethics Commission adopts new sec.6.61 and 6.63, concerning the organization and administration of the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 6999). The new sections define words and phrases used in rules adopted by the commission; and provide guidance as to the purpose and construction of commission rules; they generally describe the powers, organization, and operation of the commission; establish procedures followed by the commission in scheduling and holding its meetings and public hearings held in connection with rule-making activities; and establish procedures and charges for obtaining documents and other services provided by the commission for which a fee is imposed. The new sections will set forth basic guidelines for the orderly processing and administration of the Texas Ethics Commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333541 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter E. Agency Fees and Charges 1 TAC sec.sec.6.81, 6.83, 6.85, 6.87 The Texas Ethics Commission adopts new sec.sec.6.81, 6.83, 6.85, and 6.87, concerning the organization and administration of the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 6999). The new sections define words and phrases used in rules adopted by the commission; and provide guidance as to the purpose and construction of commission rules: they generally describe the powers, organization, and operation of the commission; establish procedures followed by the commission in scheduling and holding its meetings and public hearings held in connection with rule-making activities; and establish procedures and charges for obtaining documents and others services provided by the commission for which a fee is imposed. The new sections set forth basic guidelines for the orderly organization and administration of the Texas Ethics Commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333540 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 8. Legislative Per Diem 1 TAC sec.8.1 The Texas Ethics Commission adopts the repeal of sec.8.1, concerning legislative per diem. The repeal is adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7000). The repealed section is being replaced by a more comprehensive recodification of commission rules, resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No comments were received regarding adoption of the repeal. The repeal is adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate, adopt, and repeal rules concerning the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333517 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 8. Advisory Opinions 1 TAC sec.sec.8.1, 8.3, 8.5, 8.7, 8.9, 8.11, 8.13, 8.15, 8.17, 8. 19, 8.21 The Texas Ethics Commission adopts new sec.sec.8.1, 8.3, 8.5, 8.7, 8.9, 8.11, 8.13, 8.15, 8.17, 8.19, and 8.21, concerning advisory opinions by the commission. Section 8.5 is adopted with changes, and sections 8.1, 8.3, 8.7, 8. 9, 8.11, 8.13, 8.15, 8.17, 8.19, and 8.21 are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7000). The new sections generally describe the procedures used by the commission in issuing advisory opinions. Among other things, Chapter 8 sets forth definitions; the laws within the opinion jurisdiction of the commission; persons eligible to request opinions; the review and processing of opinions; the time period for issuance of opinions; and the compilation and publication of opinions. These sections will set forth basic guidelines for the orderly processing and timely issuance of opinions by the Texas Ethics Commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.8.5. Persons Eligible to Receive an Advisory Opinion. A person who is subject to one of the laws described in sec.8.3(a) of this title (relating to Subject of Advisory Opinions) may request an opinion that advises how the law applies to that person in a specific real or hypothetical factual situation. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333539 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 9. Advisory Opinions 1 TAC sec.sec.9.1, 9.3, 9.5, 9.7 The Texas Ethics Commission adopts the repeal of sec. sec.9.1, 9.3, 9.5, and 9. 7, concerning rules for advisory opinions. The repeals are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7001). The repealed sections are being replaced by a more comprehensive recodification of commission rules, resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No public comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333515 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 10. Practice and Procedure Subchapter A. General Provisions 1 TAC sec.sec.10.1, 10.3, 10.5, 10.7, 10.9, 10.11, 10.13, 10.15, 10.17, 10.19, 10.21, 10.23, 10.25, 10.27, 10.29, 10.31, 10.33, 10.35, 10.37, 10.39, 10.41, 10.43 The Texas Ethics Commission adopts the repeal of sec. sec.10.1, 10.3, 10.5, 10.7, 10.9, 10.11, 10.13, 10.15, 10.17, 10.19, 10.21, 10.23, 10.25, 10.27, 10. 29, 10.31, 10.33, 10.35, 10.37, 10.39, 10.41, and 10.43, concerning general provisions of practice and procedures rule. The repeals are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7002). The repealed sections are being replaced by a more comprehensive recodification of commission rules. No public comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate, adopt, and repeal rules concerning the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333555 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 10. Ethics Training Programs 1 TAC sec.10.1, sec.10.3 The Texas Ethics Commission adopts new sec.10.1, and sec.10.3, concerning training programs offered by the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7002). The new sections generally describe the establishment of a program to provide training relating to the laws administered and enforced by the commission and related laws for legislators, state employees, and other persons whose conduct is regulated by those laws. Tuition fees are established for those other persons attending certain training programs. The new sections authorize the establishment of an ethics training program to be administered by the staff of the commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333538 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Sworn Complaints 1 TAC sec.sec.10.111, 10.113, 10.115, 10.117, 10.119, 10.131, 10. 133, 10.135, 10.137 The Texas Ethics Commission adopts the repeal of sec. sec.10.111, 10.113, 10. 115, 10.117, 10.119, 10.131, 10.133, 10.135, and 10.137, concerning sworn complaint under practice and procedure rules. The repeals are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7003). The repealed sections are being replaced by a more comprehensive recodification of commission rules resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No public comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate, adopt, and repeals rules concerning the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333554 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter D. Miscellaneous 1 TAC sec.10.311, sec.10.313 The Texas Ethics Commission adopts the repeal of sec.10.311 and sec.10.313, concerning miscellaneous provisions under practice and procedure rules. The repeals are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7004). The repealed sections are being replaced by a more comprehensive recodification of commission rules resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No public comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333553 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 11. Speaker of the House of Representative Subchapter A. Campaign Reporting 1 TAC sec.sec.11.1, 11.3, 11.5, 11.7, 11.9 The Texas Ethics Commission adopts the repeal sec.sec.11.1, 11.3, 11.5, 11.7, and 11.9, concerning campaign reporting rules for the speaker of the house of representative's race. The repeals are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7004). The repeals are being replaced by a more comprehensive recodification of commission rules resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No public comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333552 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 12. Sworn Complaints Subchapter A. General Provisions and Procedures 1 TAC sec.sec.12.1, 12.3, 12.5, 12.7, 12.9, 12.11, 12.13, 12.15, 12.17, 12.19, 12.21, 12.23, 12.25, 12.27, 12.29, 12.31, 12.33, 12.35, 12.37, 12.39 The Texas Ethics Commission adopts new sec.sec.12.1, 12.3, 12.5, 12.7, 12.9, 12.11, 12.13, 12.15, 12.17, 12.19, 12.21, 12.23, 12.25, 12.27, 12.29, 12.31, 12.33, 12.35, 12.37, and 12.39, concerning the procedures used in the processing of sworn complaints by the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7004). The new section describe the general provisions and procedures under which sworn complaints will be filed and processed: they describe the procedures in the filing and initial processing of a sworn complaint; and provide guidelines in the investigation and preliminary review of a sworn complaint, the informal hearing stage of a sworn complaint, and the formal hearing stage of a sworn complaint. The new sections set forth basic guidelines and requirements for the orderly processing and administration of sworn complaints filed with the Texas Ethics Commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333537 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter B. Filing and Initial Processing of a Sworn Complaint 1 TAC sec.sec.12.51, 12.53, 12.55, 12.57, 12.59, 12.61, 12.63, 12. 65, 12.67, 12.69, 12.71 The Texas Ethics Commission adopts new sec.sec.12.51, 12.53, 12.55, 12.57, 12. 59, 12.61, 12.63, 12.65, 12.67, 12.69, and 12.71, concerning the procedures processing of sworn complaints by the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7007). The new section describe the general provisions and procedures under which sworn complaints will be filed and processed: they describe the procedures in the filing and initial processing of a sworn complaint; and provide guidelines in the investigation and preliminary review of a sworn complaint, the informal hearing stage of a sworn complaint, and the formal hearing stage of a sworn complaint. The new sections set forth basic guidelines and requirements for the orderly processing and administration of sworn complaints filed with the Texas Ethics Commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333536 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Investigation and Preliminary Review 1 TAC sec.sec.12.81, 12.83, 12.85, 12.87, 12.89 The Texas Ethics Commission adopts new sec.sec.12.81, 12.83, 12.85, 12.87, and 12.89, concerning the procedures used in the processing of sworn complaints by the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7009). The new sections describe the general provisions and procedures under which sworn complaints will be filed and processed; they describe the procedures in the filing and initial processing of a sworn complaint; and provide guidelines in the investigation and preliminary review of a sworn complaint, the informal hearing stage of a sworn complaint, and the formal hearing stage of a sworn complaint. The new sections set forth basic guidelines and requirements for the orderly processing and administration of sworn complaints filed with the Texas Ethics Commission. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate, adopt, and repeal rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333535 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter D. Informal Hearing 1 TAC sec.sec.12.101, 12.103, 12.105 The Texas Ethics Commission adopts new sec.sec.12.101, 12.103, and 12.105, concerning the procedures used in the processing of sworn complaints by the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7010). The new sections describe the general provisions and procedures under which sworn complaints will be filed and processed, describe the procedures in the filing and initial processing of a sworn complaint; and provide guidelines in the investigation and preliminary review of a sworn complaint, the informal hearing stage of a sworn complaint, and the formal hearing stage of a sworn complaint. The new sections set forth basic guidelines and requirements for the orderly processing and administration of sworn complaints filed with the Texas Ethics Commission. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333521 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter E. Formal Hearing 1 TAC sec.sec.12.111, 12.113, 12.115, 12.117, 12.119, 12.121, 12. 123 The Texas Ethics Commission adopts new sec.sec.12.111, 12.113, 12.115, 12.117, 12.119, 12.121, and 12.123, concerning the procedures used in the processing of sworn complaints by the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7011). The new sections generally describe the general provisions and procedures under which sworn complaints will be filed and processed: they describe the procedures in the filing and initial processing of a sworn complaint; and provide guidelines in the investigation and preliminary review of a sworn complaint, the informal hearing stage of a sworn complaint, and the formal hearing stage of a sworn complaint. The new sections set forth basic guidelines and requirements for the orderly processing and administration of sworn complaints filed with the Texas Ethics Commission. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333520 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 18. General Rules Concerning Reports Subchapter A. Forms and Reports 1 TAC sec.sec.18.1, 18.3, 18.5, 18.7, 18.9, 18.11, 18.13, 18.15, 18.17, 18.19, 18.21, 18.23, 18.25 The Texas Ethics Commission adopts new sec.sec.18.1, 18.3, 18.5, 18.7, 18.9, 18.11, 18.13, 18.15, 18.17, 18.19, 18.21, 18.23, and 18.25, concerning reports filed with the commission. Section 18.5 is adopted with changes, and sec.sec.18.1, 18.3, 18.7, 18.9, 18.11, 18.13, 18.15, 18.17, 18.19, 18.21, 18.23, and 18.25 are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7012). New subsection (e) has been added to sec.18.5. The new sections describe the forms used by the commission; the procedures for adopting and revising forms; notices given by the commission to filing authorities concerning proper forms and filing obligations; procedures for substitution or replication of forms; and general guidelines in the preparation, correction, and filing of reports for those persons required to file reports under the laws administered and enforced by the commission. Additionally, they set out the administrative penalties and waiver of fines for a late report. The new sections set forth basic guidelines and requirements for the orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the laws administered and enforced by the commission. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.18.5. Notice. (a) When required by reference to this section, a notice may be hand- delivered, with receipt acknowledged, or mailed to the recipient's last known mailing address on file with the commission. (b) A hand-delivered notice is effective when it is received. Notice that is mailed is effective on the date it is deposited into an official repository of the United States Postal Service, properly addressed, with postage prepaid. (c) A person entitled to receive notice may waive that right by filing a written waiver with the executive director. That waiver may be withdrawn by written notice received by the executive director no later than five business days before the next day a notice is required under this chapter. (d) Notice that is mailed is presumed to have been received by the person to whom the notice is addressed on the fifth business day after the notice is effective. A notice mailed by registered or certified mail, return receipt requested, is received on the date the receipt is signed by the recipient. (e) The executive director may combine two or more notices required or permitted to be given under 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 November 18, 1993. TRD-9333519 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter B. Corrected Reports 1 TAC sec.sec.18.41, 18.43 18.45, 18.47, 18.49 The Texas Ethics Commission adopts new sec.sec.18.41, 18.43, 18.45, 18.47, and 18.49, concerning reports filed with the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7014). The new sections describe the forms used by the commission; the procedures for adopting and revising forms; notices given by the commission to filing authorities concerning proper forms and filing obligations; procedures for substitution or replication of forms; and general guidelines in the preparation, correction, and filing of reports for those persons required to file reports under the laws administered and enforced by the commission. Additionally, they set out the administrative penalties and waiver of fines for a late report. The new sections will set forth basic guidelines and requirements for the orderly processing and administration of sworn complaints filed with the Texas Ethics Commission and other filing authorities under the laws administered and enforced by the commission. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333518 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Late Reports 1 TAC sec.sec.18.61, 18.63 18.65, 18.67, 18.69 The Texas Ethics Commission adopts new sec.sec.18.61, 18.63, 18.65, 18.67, and 18.69, concerning reports filed with the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7015). The new sections describe the forms used by the commission; the procedures for adopting and revising forms; notices given by the commission to filing authorities concerning proper forms and filing obligations; procedures for substitution or replication of forms; and general guidelines in the preparation, correction, and filing of reports for those persons required to file reports under the laws administered and enforced by the commission. Additionally, they set out the administrative penalties and wavier of fines for a late report. The new sections will set forth basic guidelines and requirements for the orderly processing and administration of sworn complaints filed with the Texas Ethics Commission and other filing authorities under the laws administered and enforced by the commission. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333561 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter D. Administrative Penalties 1 TAC sec.sec.18.81, 18.83, 18.85, 18.87, 18.89, 18.91, 18.93, 18. 95, 18.97 The Texas Ethics Commission adopts new sec.sec.18.81, 18.83, 18.85, 18.87, 18. 89, 18.91, 18.93, 18.95, and 18.97, concerning reports filed with the commission. Section 18.83 and sec.18.95 are adopted with changes, and sec.sec.18.81, 18.83, 18.85, 18.87, 18.89, 18.91, 18.93, 18.95, and 18.97, are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register , (18 TexReg 7016). New paragraph (4) has been added to subsection (a) of sec.18.83, and non-substantive changes were made to paragraphs (2) and (3). The word "correction" has been changed to "corrected" in sec.18.95(b). The new sections describe the forms used by the commission; the procedures for adopting and revising forms; notices given by the commission to filing authorities concerning proper forms and filing obligations; procedures for substitution or replication of forms; and general guidelines in the preparation, correction, and filing of reports for those persons required to file reports under the laws administered and enforced by the commission. Additionally, they set out the administrative penalties and waiver of fines for a late report. The new sections set forth basic guidelines and requirements for the orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the laws administered and enforced by the commission. No public comments were received regarding adoption of the new rules. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.18.83. No Fine for Certain Corrected Reports. (a) Both the corrected report and the original report shall be deemed to have been timely filed, and no fine is assessed against a filer who files a corrected report: (1) under sec.18.43 of this title (relating to Voluntary Correction of Reporting Error) to correct a reporting error that is not material; (2) under sec.18.43 of this title (relating to Voluntary Correction of Reporting Error) to correct a reporting error that is material, if the corrected report is accompanied by the filer's sworn affidavit under sec.18.49 of this title (relating to Good Faith Affidavit); (3) under sec.18.45 of this title (relating to Required Correction of a Reporting Error) to correct a reporting error that is not material, if the corrected report is filed no later than ten business days after the filer receives notice of that error under sec.18.47 of this title (relating to Notice of Reporting Error); or (4) under sec.18.45 of this title (relating to Required Correction of a Reporting Error) to correct a reporting error that is material, if the corrected report is filed no later than ten business days after the filer receives notice of that error under sec.18.47 of this title (relating to Notice of Reporting Error) and the corrected report is accompanied by the filer's sworn affidavit under sec.18.49 of this title (relating to Good Faith Affidavit) . (b) A corrected report other than one described under subsection (a) of this section shall be treated as a late report for all purposes, including the assessment of a fine. (c) Notwithstanding any language in this title to the contrary, a person who files a late report that was required to be filed eight days before an election, or a report that corrects a material error on such a report, shall be fined in accordance with sec.18.87 of this title (relating to Additional Fine for Title 15 Reports Filed Eight Days Before an Election). sec.18.95. No Fine by a Local Filing Authority. (a) A local filing authority has no power to assess a fine against a filer under this title. (b) Notwithstanding subsection (a) of this section, the commission may assess a fine against a filer who files a report with a local filing authority under the sworn complaint procedures established by Chapter 12 of this title (relating to Sworn Complaints). The commission may consider the fine amounts established by this title for a late report in determining the amount of a fine to be assessed in a sworn complaint. In mitigation of that fine, the commission may also consider if and when a filer has filed a corrected report with a local filing authority. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333560 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter E. Waiver of Fine 1 TAC sec.sec.18.111, 18.113, 18.115 The Texas Ethics Commission adopts new sec.sec.18.111, 18.113, and 18.115, concerning reports filed with the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7017). The new sections describe the forms used by the commission; the procedures for adopting and revising forms; notices given by the commission to filing authorities concerning proper forms and filing obligations; procedures for substitution or replication of forms; and general guidelines in the preparation, correction, and filing of reports for those persons required to file reports under the laws administered and enforced by the commission. Additionally, they set out the administrative penalties and wavier of fines for a late report. The new sections will set forth basic guidelines and requirements for the orderly processing and administration of sworn complaints filed with the Texas Ethics Commission and other filing authorities under the laws administered and enforced by the commission. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333559 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 20. Campaign Financing Subchapter A. Contribution and Expenditure Reports Penalty for Late Filing 1 TAC sec.20.1 The Texas Ethics Commission adopts the repeal of sec.20.1, concerning the penalty for late filing of campaign contribution and expenditure reports. The repeal is adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7018). The repealed section is being replaced by a more comprehensive recodification of commission rules resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No comments were received regarding adoption of the repeal. The repeal is adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate, adopt, and repeal rules concerning the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333551 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 20. Reporting Political Contributions and Expenditures Subchapter A. General Rules 1 TAC sec.sec.20.1, 20.3, 20.5, 20.7, 20.9, 20.11, 20.13, 20.15, 20.17, 20.19, 20.21, 20.23, 20.25 The Texas Ethics Commission adopts new sec.sec.20.1, 20.3, 20.5, 20.7, 20.9, 20.11, 20.13, 20.15, 20.17, 20.19, 20.21, 20.23, and 20.25, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. Sections 20.1, 20.13, and 20.19 are adopted with changes; and sec.sec.20.3, 20.5, 20.7, 20.9, 20.11, 20.15, 20.17, 20. 21, 20.23, and 20.25, are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7019). The changes to sec.20.1 are non-substantive in nature; a sentence has been added to sec.sec.20.13(c)(1) and sec.20.19; and a new subsection (e) has been added to sec.20.13. The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new rules. The new sections are adopted under Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.1. Definitions. The following words and terms, when used in this chapter, Chapter 22 of this title (relating to Restrictions on Contributions and Expenditures), Chapter 24 of this title (relating to Restrictions On Contributions And Expenditures Applicable to Corporations and Labor Organizations), and Chapter 26 of this title (relating to Political and Legislative Advertising), shall have the following meanings, unless the context clearly indicates otherwise. Campaign communication -A written or oral communication relating to a campaign for nomination or election to public office or office of a political party or to a campaign on a measure. Campaign contribution -A contribution to a candidate or political committee that is offered or given with the intent that it be used in connection with a campaign for elective office or on a measure. Whether a contribution is made before, during, or after an election does not affect its status as a campaign contribution. Campaign expenditure -An expenditure made by any person in connection with a campaign for an elective office or on a measure. Whether an expenditure is made before, during, or after an election does not affect its status as a campaign expenditure. Campaign treasurer -Either by a candidate to be the campaign treasurer, or the individual responsible for filing campaign finance reports of a political committee under Texas law or the law of any other state. Candidate-A person who knowingly and willingly takes affirmative action for the purpose of gaining nomination or election to public office or for the purpose of satisfying financial obligations incurred by the person in connection with the campaign for nomination or election. Examples of affirmative action include: (A) the filing of a campaign treasurer appointment; (B) the filing of an application for a place on the ballot; (C) the filing of an application for nomination by convention; (D) the filing of a declaration of intent to become an independent candidate or a declaration of write-in candidacy; (E) the making of a public announcement of a definite intent to run for public office in a particular election, regardless of whether the specific office is mentioned in the announcement; (F) before a public announcement of intent, the making of a statement of definite intent to run for public office and the soliciting of support by letter or other mode of communication; (G) the soliciting or accepting of a campaign contribution or the making of a campaign expenditure; or (H) the seeking of the nomination of an executive committee of a political party to fill a vacancy. Contribution-A direct or indirect transfer of money, goods, services, or any other thing of value and includes an agreement made or other obligation incurred, whether legally enforceable or not, to make a transfer. The term includes a loan or extension of credit, other than those expressly excluded by this subsection, and a guarantee of a loan or extension of credit, including a loan described by this subsection. The term includes an in-kind contribution. The term does not include: (A) a loan made in the due course of business by a corporation that is legally engaged in the business of lending money and that has conducted the business continuously for more than one year before the loan is made; (B) an expenditure required to be reported under the Government Code, Chapter 305; or (C) a transfer for consideration of any thing of value pursuant to a contract that reflects the usual and normal business practice of the vendor. Corporation-A corporation that is organized under the Texas Business Corporation Act, the Texas Non-Profit Corporation Act, federal law, or law of another state or nation. The term also includes the following associations, whether incorporated or not: banks, trust companies, savings and loan associations or companies, insurance companies, reciprocal or interinsurance exchanges, railroad companies, cemetery companies, government-regulated cooperatives, stock companies, and abstract and title insurance companies. The term does not include professional corporations or professional associations. Direct campaign expenditure-A campaign expenditure that does not constitute a contribution by the person making the expenditure. A campaign expenditure is not a contribution from the person making the expenditure if: (A) it is made without the prior consent or approval of the candidate or officeholder on whose behalf the expenditure was made; or (B) it is made in connection with a measure, but is not a political contribution to a political committee supporting or opposing the measure. Election cycle -A single election and any related primary or runoff election. Expenditure-A payment of money or any other thing of value and includes an agreement made or other obligation incurred, whether legally enforceable or not, to make a payment. General-purpose committee -A political committee that has among its principal purposes: (A) supporting or opposing: (i) two or more candidates who are unidentified or are seeking offices that are unknown; or (ii) one or more measures that are unidentified; or (B) assisting two or more officeholders who are unidentified. Identified Measure -A question or proposal submitted in an election for an expression of the voters' will and includes the circulation and submission of a petition to determine whether a question or proposal is required to be submitted in an election for an expression of the voters' will. In-Kind Contribution -A contribution of goods, services, or any other thing of value, except money, and includes an agreement made or other obligation incurred, whether legally enforceable or not, to make such a contribution. The term does not include a direct campaign expenditure. Labor organization -An agency, committee, or any other organization in which employees participate that exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. Non-political expenditure -An expenditure from political contributions that is not an officeholder expenditure or a campaign expenditure. Officeholder contribution -A contribution to an officeholder or political committee that is offered or given with the intent that it be used to defray expenses that: (A) the officeholder incurs in performing a duty or engaging in an activity in connection with the office; and (B) are not reimbursable with public money. Officeholder expenditure-An expenditure made by any person to defray expenses that: (A) are incurred by an officeholder in performing a duty or engaging in an activity in connection with the office; and (B) are not reimbursable with public money. Opposed candidate -A candidate who has an opponent whose name is to appear on the ballot. The name of a write-in candidate does not appear on the ballot. Out-of-state political committee-A political committee that makes political expenditures outside Texas and in the 12 months immediately preceding the making of a political expenditure by the committee inside Texas (other than an expenditure made in connection with a campaign for a federal office or made for a federal officeholder), makes 80% or more of the committee's total political expenditures in any combination of elections outside this state and federal offices not voted on in this state. Section 20. 13 of this title (relating to Out-of-State Committees) explains the practical application of this definition. Pledge-A contribution in the form of an unfulfilled promise or unfulfilled agreement, whether enforceable or not, to provide a specified amount of money or specific goods or services. The term does not include a contribution actually made in the form of a check. Political advertising -A communication that supports or opposes a political party, a public officer, a measure, or a candidate for nomination or election to a public office or office of a political party, and: (A) is published in a newspaper, magazine, or other periodical in return for consideration; (B) is broadcast by radio or television in return for consideration; or (C) appears in a pamphlet, circular, flier, billboard or other sign, bumper sticker, or similar form of written communication. Political committee -Two or more persons that have as a principal purpose accepting political contributions or making political expenditures to support or oppose candidates, officeholders, or measures. Political contribution -A campaign contribution or an officeholder contribution. Political expenditure -A campaign expenditure or an officeholder expenditure. Political subdivision -A county, city, or school district or any other governmental entity that: (A) embraces a geographic area with a defined boundary; (B) exists for the purpose of discharging functions of government; and (C) possesses authority for subordinate self-government through officers selected by it. Report-Any document required to be filed by this title, including treasurer, any type of report of contributions and expenditures, and any notice. Reportable activity -A political contribution, political expenditure, or other activity required to be reported under this title. Specific-purpose committee -A political committee that does not meet the definition of general-purpose committee and that has among its principal purposes: (A) supporting or opposing one or more: (i) candidates, all of whom are identified and are seeking offices that are known; or (ii) measures, all of which are identified; (B) assisting one or more officeholders, all of whom are identified; or (C) supporting or opposing only one candidate who is unidentified or who is seeking an office that is unknown. Telegram report -A shorthand term for a report filed in accordance with the requirements of sec.sec.20.221, 20.333, or 20.435 of this title (relating to Telegram Report by Certain Candidates; Telegram Report by Certain Specific- Purpose Committees; Telegram Reports by Certain General-Purpose Committees). The report may be filed by telegram, telephonic facsimile machine, or by hand. Unidentified Measure -A question or proposal that is intended to be submitted in an election for an expression of the voters' will and that is not yet legally required to be submitted in an election, except that the term does not include the circulation or submission of a petition to determine whether a question or proposal is required to be submitted in an election for an expression of the voters' will. The circulation or submission of a petition to determine whether a question or proposal is required to be submitted in an election for an expression of the voters' will is considered to be an identified measure. sec.20.13. Out-of-State Committees. (a) An out-of-state political committee is not required to file reports under this title. (b) An out-of-state political committee that files an appointment of campaign treasurer with a Texas filing authority is required to file reports under this title. (c) A political committee must determine if it is an "out-of-state political committee" (and therefore not required to file reports under this title) each time the political committee plans to make a political expenditure in Texas (other than an expenditure in connection with a campaign for a federal office or an expenditure for a federal officeholder). The determination is made as follows: (1) Before making the expenditure (other than an expenditure in connection with a campaign for a federal office or an expenditure for a federal officeholder), the committee must calculate its total political expenditures made during the 12 months immediately preceding the date of the planned expenditure. This total does not include the planned political expenditure triggering the calculation requirement. (2) If 80% or more of the total political expenditures are in connection with elections not voted on in Texas, the committee is an out-of-state committee and may make the anticipated expenditure without complying with the reporting requirements set out in this title, regardless of the amount of the anticipated expenditure. (3) If less than 80% of the total political expenditures are in connection with elections not voted on in Texas, the committee is no longer an out-of-state committee and may not make the anticipated expenditure without complying with the requirements of this title applicable to political committees generally. (d) Section 22.7 of this title (relating to Contribution from Out-of-State Committee) contains other provisions regarding requirements applicable to recipients of contributions from out-of-state political committees. (e) An out-of-state political committee planning an expenditure in connection with a campaign for federal office voted on in Texas is not required to make the determination required under subsection (c) of this section. However, an expenditure in connection with a campaign for federal office voted on in Texas must be included in the calculation set out in subsection (c) of this section for an out-of-state committee making an expenditure in connection with a non- federal campaign voted on in Texas. sec.20.19. Reports Must Be Filed On Official Forms. Except for telegram reports, all reports required by Chapters 20-38 must be filed on forms prescribed by the commission pursuant to sec.18.1 of this title (relating to Adoption and Revision of Forms) or on forms approved by the executive director pursuant to sec.18.11 of this title (relating to Substitution or Replication of Forms). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333558 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Rules Concerning Reports 1 TAC sec.sec.20.27, 20.29, 20.31, 20.33, 20.35, 20.111, 20.113, 20.115, 20.117, 20.119, 20.121, 20.123, 20.125, 20.127, 20.131, 20.133, 20.135, 20.137, 20.139, 20.151, 20.153, 20.155, 20.157, 20.159, 20.161 The Texas Ethics Commission adopts the repeal of sec. sec.20.27, 20.29, 20.31, 20.33, 20.35, 20.111, 20.113, 20.115, 20.117, 20.119, 20.121, 20.123, 20.125, 20.127, 20.131, 20.133, 20.135, 20.137, 20.139, 20.151, 20.153, 20.155, 20.157, 20.159, and 20.161, concerning the rules for filing campaign disclosure reports. The repealed sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7022). The repealed sections are being replaced by a more comprehensive recodification of commission rules resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate, adopt, and repeal rules concerning the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333550 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter B. General Reporting Rules 1 TAC sec.sec.20.51, 20.53, 20.55, 20.57, 20.59, 20.61, 20.63, 20. 65, 20.67 The Texas Ethics Commission adopts new sec.sec.20.51, 20.53, 20.55, 20.57, 20. 59, 20.61, 20.63, 20.65, and 20.67, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. Sections 20.53, 20.57, 20.65, and 20.67 are adopted with changes; sec.sec.20.51, 20.55, 20.59, 20.61, and 20.63 are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7023). The words "or expenditure" are added to the last sentence of sec.20.53; and the word "telephone" has been substituted for "phone" in sec.20.57. The changes to sec.20.65 and sec.20.67 are non-substantive in nature. The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.53. Disclosure of True Source of Contribution or Expenditure. A person may not knowingly make or authorize a political contribution or political expenditure in the name of or on behalf of another unless the person discloses the name and address of the person who is the true source of the contribution or expenditure. sec.20.57. Time of Making Expenditure. (a) The date of a political expenditure is the date the amount is readily determinable by the person making the expenditure, except as provided by subsection (b) of this section. (b) If under normal business practices, the amount of an expenditure is not known or readily ascertainable until receipt of a periodic bill, the date of the expenditure is the date the bill is received. Examples of expenditures to which this subsection is applicable are expenditures for use of electricity or for long-distance telephone calls. (c) A political expenditure by credit card must be included in the report for the period during which the charge was made, not in the report for the period during which the statement from the credit card company was received. sec.20.65. Reporting No Activity. (a) As a general rule, a candidate or officeholder must file a report required by Subchapter C of this chapter (relating to Reporting Requirements for a Candidate) or Subchapter D of this chapter (relating to Reporting Requirements for an Officeholder Who Does Not Have a Campaign Treasurer Appointment on File) even if there has been no reportable activity during the period covered by the report. (b) This general rule does not apply to: (1) telegram reports; (2) special session reports; or (3) a local officeholder who does not have a campaign treasurer appointment on file and who does not accept more than $500 in political contributions or make more than $500 in political expenditures during the reporting period. (c) If a required report will disclose that there has been no reportable activity during the reporting period, the filer shall submit only those pages of the report necessary to identify the filer and to swear to the lack of reportable activity. sec.20.67. Reporting After the Death or Incapacity of a Filer. (a) The responsibility to file reports required by this title survives the death or incapacity of a candidate or officeholder. (b) The legal representative or the estate of a candidate or officeholder who has died, or the legal representative of a candidate who is incapacitated, shall file any reports due under Subchapter C of this chapter (relating to Reporting Requirements for a Candidate) or Subchapter D of this chapter (relating to Reporting Requirements for an Officeholder Who Does Not Have a Campaign Treasurer Appointment on File). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333557 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Reporting Requirements for a Candidate 1 TAC sec.sec.20.201, 20.203, 20.205, 20.207, 20.209, 20.211, 20.213, 20.215, 20.217, 20.219, 20.221, 20.223, 20.225, 20.227, 20.229, 20.231, 20.233, 20.235, 20.237, 20.239, 20.241, 20.243 The Texas Ethics Commission adopts new sec.sec.20.201, 20.203, 20.205, 20. 207, 20.209, 20.211, 20.213, 20.215, 20.217, 20.219, 20.221, 20.223, 20.225, 20.227, 20.229, 20.231, 20.233, 20.235, 20.237, 20.239, 20.241, and 20.243, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. These sections are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7025). The changes are primarily non-substantive in nature. The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. of Campaign Treasurer. A candidate must file a before accepting any campaign contributions or making or authorizing any campaign expenditures, including campaign expenditures from personal funds. sec.20.203. Candidates for State Party Chair. Because the state chair of a political party does not hold a public office, a candidate for state chair of a political party is not within the definition of "candidate" set out in sec.20.1(4) of this title (relating to Definitions). Nonetheless, a candidate for the state chair of a political party is subject to filing requirements as provided by Subchapter J of this chapter (relating to Reports by a Candidate for State Party Chair). sec.20.205. Contents of Candidate's Campaign Treasurer shall include the following information: (1) the name of the candidate making the appointment; (2) the mailing address of the candidate making the appointment; (3) the office sought by the candidate making the appointment, if known; (4) the office held by the candidate, if any; (5) the name of the individual appointed campaign treasurer; (6) the campaign treasurer's residence or business street address; (7) the campaign treasurer's telephone number; (8) a statement acknowledging awareness of Government Code, Chapter 573, Subchapter C (relating to Nepotism Prohibitions); and (9) the signature of the candidate making the appointment. sec.20.207. Termination of Campaign Treasurer Appointment. (a) A candidate may terminate a campaign treasurer appointment by: (1) filing a campaign treasurer appointment for a successor campaign treasurer; or (2) filing a final report. (b) A person may terminate his or her own status as campaign treasurer by immediately notifying both the appointing authority and the filing authority in writing. (c) If a person terminates his or her own status as campaign treasurer, the termination is effective on the date the candidate receives the notice or on the date the filing authority actually receives the notice, whichever is later. (d) Section 20.23 of this title (relating to Timeliness of Action by Mail) does not apply to subsection (c) of this section. sec.20.209. Reporting Obligations Imposed on Candidate, Not Campaign Treasurer. A candidate, not the candidate's campaign treasurer, is responsible for complying with this title. sec.20.211. Semiannual Reports. (a) A candidate shall file semiannual reports as provided by this section. (b) One semiannual report is due no earlier than July 1 and no later than July 15. (1) The period covered by a report under this subsection begins on the later of the following dates, as applicable: (A) January 1; (B) the first day after the period covered by the last report required by this subchapter (other than a telegram report or a special session report) or Subchapter D of this title (relating to Reporting Requirements for an Officeholder Who Does Not Have a Campaign Treasurer Appointment on File); or (C) the day the candidate's campaign treasurer appointment was filed, if this is the candidate's first report filed under this subchapter (other than a telegram report or a special session report) or Subchapter D of this title. (2) The period covered by a report under this subsection ends on June 30. (c) One semiannual report is due no earlier than January 1 and no later than January 15. (1) The period covered by a report under this subsection begins on the later of the following dates, as applicable: (A) July 1; (B) the first day after the period covered by the last report required by this subchapter (other than a telegram report or a special session report) or Subchapter D of this chapter; or (C) the day the candidate's campaign treasurer appointment was filed, if this is the candidate's first report filed under this subchapter (other than a telegram report or a special session report) or Subchapter D of this chapter. (2) The period covered by a report under this subsection continues through December 31. sec.20.213. Pre-election Reports. (a) A candidate who has an opponent on the ballot in an election must file two pre-election reports, except as provided by subsections (b), (e), and (f) of this section. (b) A candidate who has declared the intention to file reports in accordance with sec.20.217 of this title (relating to Modified Reporting) and who remains eligible to file under the modified schedule is not required to file pre- election reports. (c) The first pre-election report is due not later than 30 days before election day. If this is the candidate's first report filed, the report covers a period that begins on the day the candidate's campaign treasurer appointment was filed. Otherwise the period begins on the first day after the period covered by the last report required by this subchapter (other than a telegram report or a special session report) or Subchapter D of this title (relating to Reporting Requirements for an Officeholder Who Does Not Have a Campaign Treasurer Appointment on File). The period covered by the report continues through the 40th day before the election. (d) The second pre-election report is due not later than 8 days before election day. The report covers the period that begins on the 39th day before the election and ends on the 10th day before the election. (e) If a person becomes an opposed candidate during the period that begins on the 39th day before the election and ends on the 10th day before the election, the person shall file one pre-election report. The report shall cover a period that begins on the day the candidate's campaign treasurer appointment was filed, if this is the candidate's first report filed, or on the first day after the period covered by the last report required by this subchapter (other than a telegram report or a special session report) or Subchapter D of this title. The period covered by the report ends on the 10th day before the election. (f) If a person becomes an opposed candidate after the 10th day before the election, the person is not required to file pre-election reports. The person is required to file any telegram reports required by sec.20. 221 of this title (relating to Telegram Report by Certain Candidates). sec.20.215. Runoff Report. (a) A candidate in a runoff election shall file a runoff report, except as provided by subsection (b) of this section. (b) A candidate who has declared an intention to file reports in accordance with sec.20.217 of this title (relating to Modified Reporting) and who remains eligible to file under the modified schedule is not required to file a runoff report. (c) A runoff report is due no later than the 8th day before the runoff election. (d) A runoff report covers the period that begins on the 9th day before the date of the main election and ends on the 10th day before the runoff. sec.20.217. Modified Reporting. (a) An opposed candidate who does not intend to accept more than $500 in political contributions or make more than $500 in political expenditures (excluding filing fees) in connection with any election in an election cycle may choose to file under the modified schedule. (b) Under the modified schedule, an opposed candidate is not required to file pre-election reports or a runoff report. (c) To select modified filing, a candidate must file a declaration of intent not to accept more than $500 in political contributions or make more than $500 in political expenditures (excluding filing fees) in connection with the election. The declaration must include a statement that the candidate understands that if either one of those limits is exceeded, the candidate will be required to file pre-election reports and, if necessary, a runoff report. (d) A declaration under subsection (c) of this section is filed with the candidate's campaign treasurer appointment. (e) To file under the modified schedule, a candidate must file the declaration required under subsection (c) of this section no later than the 30th day before the first election to which the declaration applies. A declaration filed under subsection (c) of this section is valid for one election cycle only. (f) If an opposed candidate exceeds either of the $500 limits, the candidate must file reports under sec.20.213 of this title (relating to Pre-election Reports) and sec.20.215 of this title (relating to Runoff Report). (g) If an opposed candidate exceeds either of the $500 limits after the 30th day before the election, the candidate must file a report not later than 48 hours after exceeding the limit. If this is the candidate's first report filed, the report covers a period that begins on the day the candidate's campaign treasurer appointment was filed. Otherwise the period begins on the first day after the period covered by the last report required by this subchapter (other than a telegram report or a special session report) or Subchapter D of this title (relating to Reporting Requirements for an Officeholder Who Does Not Have a Campaign Treasurer Appointment on File). The period covered by the report continues through the day the candidate exceeded one of the limits for modified reporting. sec.20.219. Content of Candidate's Sworn Report of Contributions and Expenditures. Semiannual reports, pre-election reports, and runoff reports must cover reportable activity during the reporting period and must include the following information: (1) the candidate's full name; (2) the candidate's address; (3) the office sought by the candidate, if known; (4) the identity and date of the election for which the report is filed, if known; (5) the campaign treasurer's name; (6) the campaign treasurer's telephone number; (7) the campaign treasurer's residence or business street address; (8) for each political committee from which the candidate received notice under sec.20. 319 of this title (relating to Notice to Candidate or Officeholder) or sec.20. 421 of this title (relating to Notice to Candidate or Officeholder): (A) the committee's full name; (B) the committee's address; (C) identification of the political committee as a general-purpose or a specific-purpose committee; (D) the full name of the committee's campaign treasurer; and (E) the address of the committee's campaign treasurer; (9) for each individual making a reportable direct campaign expenditure from whom the candidate received notice under sec.22.5 of this title (relating to Direct Campaign Expenditures): (A) the full name of the individual; and (B) the address of the individual; (10) on a separate page, the following information for each expenditure from political contributions made to a business in which the candidate has a participating interest of more than 10%, holds a position on the governing body of the business, or serves as an officer of the business: (A) the full name of the business to which the expenditure was made; (B) the address of the person to whom the expenditure was made; (C) the date of the expenditure; (D) the nature of the goods or services for which the expenditure was made; and (E) the amount of the expenditure; (11) for each person from whom the candidate accepted a political contribution (other than a pledge, loan, or a guarantee of a loan) of more than $50 in value or political contributions (other than pledges, loans, or guarantees of loans) that total more than $50 in value: (A) the full name of the person making the contribution; (B) the address of the person making the contribution; (C) the total amount of contributions; (D) the date each contribution was accepted; and (E) a description of any in-kind contribution; (12) for each person from whom the candidate accepted a pledge or pledges to provide more than $50 in money or goods or services worth more than $50: (A) the full name of the person making the pledge; (B) the address of the person making the pledge; (C) the amount of each pledge; (D) the date each pledge was accepted; and (E) a description of any goods or services pledged; and (F) the total of all pledges accepted during the period for $50 and less from a person, except those reported under subparagraphs (A)-(E) of this paragraph. (13) for each person making a loan or loans to the candidate for campaign purposes if the total amount loaned by the person during the period is more than $50: (A) the full name of the person or financial institution making the loan; (B) the address of the person or financial institution making the loan; (C) the amount of the loan; (D) the date of the loan; (E) the interest rate; (F) the maturity date; (G) the collateral for the loan, if any; and (H) if the loan has guarantors: (i) the full name of each guarantor; (ii) the address of each guarantor; (iii) the principal occupation of each guarantor; (iv) the name of the employer of each guarantor; and (v) the amount guaranteed by each guarantor; (14) the total amount of loans accepted during the period for $50 and less from persons other than financial institutions engaged in the business of making loans for more than one year, except for a loan reported under paragraph (13) of this subsection; (15) for political expenditures made during the reporting period that total more than $50 to a single payee, other than expenditures reported under paragraph (10) of this subsection: (A) the full name of the person to whom each expenditure was made; (B) the address of the person to whom the expenditure was made; (C) the date of the expenditure; (D) the purpose of the expenditure; and (E) the amount of the expenditure; (16) for each political expenditure of any amount made out of personal funds for which reimbursement from political contributions is intended: (A) the full name of the person to whom each expenditure was made; (B) the address of the person to whom the expenditure was made; (C) the date of the expenditure; (D) the purpose of the expenditure; (E) a declaration that the expenditure was made out of personal funds; (F) a declaration that reimbursement from political contributions is intended; and (G) the amount of the expenditure; (17) for each non-political expenditure made from political contributions, other than expenditures reported under paragraph (10) of this section: (A) the date of each payment; (B) the full name of the person to whom the payment was made; (C) the address of the person to whom the payment was made; (D) the nature of the goods or services for which the payment was made; and (E) the amount of the payment; (18) for each other candidate or officeholder who benefits from a direct campaign expenditure made by the candidate during the reporting period: (A) the name of the candidate or officeholder; and (B) the office sought or held by the candidate or officeholder. (19) for each political contribution from an out-of-state political committee, the information required by sec.22.7 of this title (relating to Contribution from Out-of-State Committee); (20) the following total amounts: (A) the total principal amount of all outstanding loans as of the last day of the reporting period; (B) the total amount or an itemized listing of political contributions (other than pledges, loans, or guarantees of loans) of $50 and less; (C) the total amount of all political contributions (other than pledges, loans, or guarantees of loans); (D) the total amount or an itemized listing of the political expenditures of $50 and less; and (E) the total amount of all political expenditures; (21) if applicable, a statement that no reportable activity occurred during the reporting period; and (22) an affidavit, executed by the candidate, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.221. Telegram Report by Certain Candidates. (a) As provided by subsection (b) of this section, certain candidates must file reports about certain contributions accepted during the period that begins on the 9th day before an election and ends at noon on the 2nd day before an election. Reports under this section are known as "telegram" reports, although they may be filed by hand or by telephonic facsimile machine as well as by telegram. (b) The following candidates must file telegram reports: (1) an opposed candidate for state senator who, during the period described in subsection (a) of this section, accepts one or more political contributions from a person that in the aggregate exceed $1,000; and (2) an opposed candidate for state representative who, during the period described in subsection (a) of this section, accepts political contributions from a person that in the aggregate exceed $200. (c) A candidate must file a telegram report no later than 48 hours after the candidate accepts a contribution from a person that triggers the requirement to file the telegram report. (d) The report filed under subsection (c) of this section may be delivered by hand, by telegram, or by telephonic facsimile machine. Section 20.23 of this title (relating to Timeliness of Action by Mail) does not apply to this section. (e) If, during the reporting period for telegram contributions, a candidate receives additional contributions from a person whose previous contribution or contributions have triggered the requirement to file a telegram report during that period, the candidate must file an additional telegram report for each such contribution. Each such telegram report is due no later than 48 hours after the candidate accepts the contribution. (f) A candidate must file telegram reports for each person whose contribution or contributions made during the period for telegram reports exceed the threshold for telegram reports. (g) A candidate must also report contributions reported on a telegram report on the next semiannual, pre-election, or runoff report filed, as applicable. sec.20.223. Form and Contents of Telegram Report. (a) A telegram report shall be filed by telegram or telephonic facsimile machine or by hand. The report is not required to be on a form prescribed by the commission. (b) A telegram report shall include the following information: (1) the name of the candidate; (2) the office sought by the candidate; (3) the name of the person making a contribution or contributions that triggered the requirement to file a telegram report; (4) the address of the person making the contribution or contributions; (5) the amount of each contribution; (6) the date each contribution was accepted; and (7) a description of any in-kind contribution. sec.20.225. Special Session Reports. (a) A candidate for a statewide office or for the legislature who accepts a political contribution during the period that begins on the date the governor signs a proclamation calling a special legislative session and ends on the date of final adjournment must file a special session report. (b) A special session report must be filed with the commission no later than the 30th day after the date of final adjournment of the special session. (c) A special session report is a report of contributions only, not expenditures. Expenditures made during the period covered by a special session report are required to be reported in the next applicable sworn report of contributions and expenditures. (d) Contributions reported in a special session report are not to be reported in any other report. (e) A determination to accept or refuse a political contribution received during the period covered by a special session report shall be made no later than the 3rd day after the date the contribution is received. (f) A contribution that is refused under subsection (e) of this section must be returned no later than the 30th day after the date of final adjournment. A contribution not returned by that date will be deemed accepted. (g) A candidate is not required to file a separate special session report if another report is due no later than the 10th day after the date a report required under this section would be due. sec.20.227. Contents of Special Session Report. A special session report shall include the following information: (1) the candidate's name; (2) the candidate's address; (3) the office sought by the candidate; (4) the date each contribution was accepted; (5) the full name of each person making a contribution; (6) the address of each person making a contribution; (7) the amount of each contribution accepted during the period; (8) a description of any in-kind contribution accepted during the period; and (9) an affidavit, executed by the candidate, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.229. Final Report. (a) A candidate who expects no further reportable activity in connection with his or her candidacy may file a final report at any time. (b) The term "reportable activity" includes an expenditure to pay a campaign debt. (c) Filing a final report terminates the candidate's campaign treasurer appointment and relieves the candidate of the responsibility for filing reports, except as provided by subsection (e) of this section. (d) A former candidate may not accept campaign contributions or make campaign expenditures without a campaign treasurer appointment on file. (e) A candidate who is not an officeholder when he or she files a final report under this section, and who retains unexpended political contributions, unexpended interest or other income from political contributions, assets purchased with political contributions or interest, or other income from political contributions is subject to the requirements of sec.sec.20.233-20.243 of this title. (f) A candidate who is an officeholder when he or she files a final report under this section becomes subject to the reporting requirements set out in Subchapter D of this title (relating to Reporting Requirements for an Officeholder Who Does Not Have a Campaign Treasurer Appointment on File). sec.20.231. Contents of Final Report. A final report must contain the following: (1) the information listed in sec.20.219 of this title (relating to Content of Candidate's Sworn Report of Contributions and Expenditures); (2) the following statement, signed by the candidate: "I do not expect any further political contributions or political expenditures in connection with my candidacy. I understand that designating a report as a final report terminates my campaign treasurer appointment. I also understand that I may not accept any campaign contributions or make any campaign expenditures without a campaign treasurer appointment on file."; (3) if the candidate is not an officeholder, a statement that the candidate does or does not have unexpended contributions or unexpended interest or other income earned from political contributions; (4) if the candidate is not an officeholder and has unexpended contributions or unexpended interest or income earned from political contributions, the following statement signed by the candidate: "I understand that I may not convert unexpended political contributions or unexpended interest or other income earned from political contributions to personal use. I also understand that I must file an annual report of unexpended contributions and that I may not retain unexpended contributions or unexpended interest or other income earned from political contributions longer than six years after filing this final report. Further, I understand that I must dispose of unexpended political contributions and unexpended interest or other income earned from political contributions in accordance with the requirements of Election Code, sec.254.204 (relating to Disposition of Unexpended Contributions)."; (5) if the candidate is not an officeholder, a statement that the candidate does or does not retain assets purchased with political contributions or interest or other income earned from political contributions; (6) if the candidate is not an officeholder and retains assets purchased with political contributions or interest or other income from political contributions, the following statement signed by the candidate: "I understand that I may not convert assets purchased with political contributions or interest or other income earned from political contributions to personal use. I also understand that I must file an annual report of unexpended contributions and that I may not retain assets purchased with political contributions or interest or other income earned from political contributions longer than six years after filing this final report. I also understand that I must dispose of assets purchased with political contributions or interest or other income earned from political contributions in accordance with the requirements of Election Code, sec.254.204 (relating to Disposition of Unexpended Contributions)."; and (7) if the candidate is an officeholder, a statement that the officeholder is aware that he or she remains subject to filing requirements applicable to an officeholder who does not have a campaign treasurer appointment on file. sec.20.233. Annual Report of Unexpended Contributions. (a) A candidate who files a final report and is not an officeholder when he or she files a final report under sec.20.229 of this title (relating to Final Report) must file an annual report for each year that the former candidate retains unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions. (b) The report is due not earlier than January 1 and not later than January 15 of the year after a year in which the former candidate retained unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions. (c) The report is filed with the authority with whom the former candidate's campaign treasurer appointment was required to be filed. (d) The requirement to file annual reports ends after: (1) all unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions have been disbursed and reported on an annual report, or (2) the former candidate has complied with sec.20.237 of this title (relating to Disposition of Unexpended Contributions) and sec.20.239 of this title (relating to Report of Final Disposition of Unexpended Contributions). sec.20.235. Contents of Annual Report. An annual report of unexpended contributions shall include the following information: (1) the candidate's full name; (2) the candidate's address; (3) for each payment made by the candidate from unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions during the previous year: (A) the full name of each person to whom a payment was made; (B) the address of each person to whom a payment was made; (C) the date of each payment; (D) the nature of the goods or services for which the payment was made; and (E) the amount of each payment; (4) the total amount of unexpended political contributions as of December 31 of the previous year; (5) the total amount of interest and other income earned on unexpended political contributions during the previous year; and (6) an affidavit, executed by the candidate, stating, "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.237. Final Disposition of Unexpended Contributions. (a) A former candidate who was not an officeholder at the time he or she filed a final report may not retain unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions for more than six years after the date of the final report, except as provided by subsection (f) of this section. (b) During the six-year period after the final report is filed, a former candidate may disburse unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions to one of the following: (1) the political party with which the person was affiliated when the person's name last appeared on a ballot; (2) a candidate or political committee, subject to the reporting requirements of sec.20.243 of this title (relating to Contribution of Unexpended Political Contributions to Candidate or Political Committee); (3) the comptroller of public accounts, for deposit in the state treasury for use in financing primary elections; (4) one or more persons from whom political contributions were received, with contributions to a person not to exceed the aggregate amount the former candidate accepted from that person during the last two years that the candidate accepted political contributions; (5) a recognized, tax-exempt charitable organization; or (6) a public or private post-secondary educational institution or an institution of higher education, as defined by Education Code, sec.61.003(8) (relating to Definitions), solely for the purpose of assisting or creating a scholarship program. (c) A former candidate may not convert unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions to personal use. (d) At the end of the six-year period after the final report is filed, a former candidate must dispose of unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions in one of the ways listed in subsection (b) of this section. (e) A former candidate must make the disposition required by subsection (d) of this section by the tenth day after the end of the six-year period. (f) The six-year period prescribed by subsection (a) of this section ceases to run if the former candidate files a new campaign treasurer appointment during the period. sec.20.239. Report of Final Disposition of Unexpended Contributions. (a) A person required by sec.20.237 of this title (relating to Final Disposition of Unexpended Contributions) to dispose of unexpended contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions at the end of the period for retaining such funds is required to file a report of the disposition of such funds. (b) The report must be filed no later than the 30th day after the end of the six-year period prescribed by sec.20.237(a) of this title (relating to Final Disposition of Unexpended Contributions). (c) The report shall be filed with the authority with whom the person's campaign treasurer appointment was required to be filed. (d) The report shall cover the period that begins on the first day after the period covered by the last annual report required through the day a report under this section is filed. sec.20.241. Contents of Report of Final Disposition of Unexpended Contributions. A report of final disposition of unexpended contributions shall include the following information: (1) the candidate's full name; (2) the candidate's address; (3) the full name of each person to whom a payment from unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions was made; (4) the address of each person to whom such a payment was made; (5) the date of each payment; (6) the nature of the goods or services for which the payment was made; (7) the amount of each payment; and (8) an affidavit, executed by the candidate, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.243. Contribution of Unexpended Political Contributions to Candidate or Political Committee. (a) A former candidate who has filed a final report and who contributes unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions to a candidate or political committee must report the contribution on an annual report of unexpended contributions or on a report of final disposition of unexpended contributions, as applicable. The former candidate must also report the contribution under subsection (b) of this section. (b) A former candidate who has filed a final report and who contributes unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions to a candidate or political committee must report each contribution to the filing authority with whom the candidate or political committee receiving the contribution files reports. The contribution must be reported on the form used for reports of contributions and expenditures by specific-purpose committees. The report should be filed by the due date for the report in which the candidate or political committee receiving the contribution must report the receipt of the contribution. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333556 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter D. Reporting Requirements for an Officeholder Who Does Not Have a Campaign Treasurer Appointment on File 1 TAC sec.sec.20.271, 20.273, 20.275, 20.277, 20.279, 20.281, 20. 283, 20.285, 20.287, 20.289, 20.291, 20.293, 20.295 The Texas Ethics Commission adopts new sec.sec.20.271, 20.273, 20.275, 20.277, 20.279, 20.281, 20.283, 20.285, 20.287, 20.289, 20.291, 20.293, and 20.295, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. The new sections are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7030). The changes are primarily non- substantive in nature; however, sec.sec.20.279, 20.285, 20.287, 20. 289, 20.291, 20.293, and 20.295 have been revised with for additional language. The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.271. Officeholders Covered. (a) The provisions in this subchapter that apply to an officeholder apply only to a person who holds an elective public office in the state and to the secretary of state. (b) For purposes of this subchapter, a statewide officer-elect or a member- elect of the legislature is considered to be an officeholder beginning on the day after the date of the general or special election at which the officer-elect or member-elect was elected. (c) An officeholder who has a campaign treasurer appointment on file is a candidate for filing purposes and shall file under Subchapter C of this chapter (relating to Reporting Requirements for a Candidate) rather than under this subchapter. sec.20.273. Semiannual Reports of Contributions and Expenditures. (a) Except as provided by sec.20.275 of this title (relating to Exception from Filing Requirement for Certain Local Officeholders), an officeholder shall file semiannual reports of contributions and expenditures as provided by this section. (b) One semiannual report is due no earlier than July 1 and no later than July 15. (1) The period covered by a report under this subsection begins on the later of the following dates, as applicable: (A) January 1; (B) the first day after the period covered by the last report required by this chapter, whether that report was filed by the officeholder in his or her status as an officeholder or as a candidate; or (C) the day the officeholder took office, if the report is the first report filed by the officeholder under this chapter. (2) The period covered by a report under this subsection ends on June 30. (c) One semiannual report is due no earlier than January 1 and no later than January 15. (1) The period covered by a report under this subsection begins on the later of the following dates, as applicable: (A) July 1; (B) the first day after the period covered by the last report required by this chapter, whether that report was filed by the officeholder in his or her status as an officeholder or as a candidate; or (C) the day the officeholder took office, if the report is the first report filed by the officeholder under this chapter. (2) The period covered by a report under this subsection ends on December 31. sec.20.275. Exception from Filing Requirement for Certain Local Officeholders. An officeholder is not required to file a semiannual report of contributions and expenditures if the officeholder: (1) is required to file with an authority other than the commission; (2) does not have a campaign treasurer appointment on file; and (3) does not accept more than $500 in political contributions or make more than $500 in political expenditures during the reporting period. Officeholder of Campaign Treasurer. (a) An officeholder who appoints a campaign treasurer after a period in which the officeholder did not have a campaign treasurer appointment on file must file a sworn report of contributions and expenditures no later than 15 days after the date the campaign treasurer appointment was filed. (b) A report required by this section covers a period that begins on the later of the following dates, as applicable: (1) the first day after the period covered by the last report filed under this chapter, whether that report was filed by the officeholder in his or her status as an officeholder or as a candidate; or (2) the day the officeholder took office, if the report is the first report filed by the officeholder under this chapter. (c) The period covered by a report required by this section ends on the day the campaign treasurer appointment was filed. (d) After an officeholder files a campaign treasurer appointment, the officeholder is a candidate for filing purposes and shall file under Subchapter C of this chapter (relating to Reporting Requirements for a Candidate) rather than under this subchapter. sec.20.279. Contents of Officeholder's Sworn Report of Contributions and Expenditures. An officeholder's semiannual report of contributions and expenditures required by this subchapter must cover reportable activity during the reporting period and must include the following information: (1) the officeholder's full name; (2) the officeholder's address; (3) the office held by the officeholder; (4) for each political committee from which the officeholder received notice under sec.20.319 of this title (relating to Notice to Candidate or Officeholder) or sec.20.421 of this title (relating to Notice to Candidate or Officeholder): (A) the committee's full name; (B) the committee's address; (C) identification of the political committee as a general-purpose or a specific-purpose committee; (D) the full name of the committee's campaign treasurer; and (E) the address of the committee's campaign treasurer; (5) on a separate page, the following information for each expenditure from political contributions made to a business in which the officeholder has a participating interest of more than 10%, holds a position on the governing body of the business, or serves as an officer of the business: (A) the full name of the business to which the expenditure was made; (B) the address of the business to which the expenditure was made; (C) the date of the expenditure; (D) the nature of the goods or services for which the expenditure was made; and (E) the amount of the expenditure; (6) for each person from whom the officeholder accepted a political contribution (other than a pledge, loan, or a guarantee of a loan) of more than $50 in value or political contributions (other than pledges, loans, or guarantees of loans) that total more than $50 in value: (A) the full name of the person making the contribution; (B) the address of the person making the contribution; (C) the total amount of contributions; (D) the date each contribution was accepted; and (E) a description of any in-kind contribution; (7) for each person from whom the officeholder accepted a pledge or pledges to provide more than $50 in money or goods or services worth more than $50: (A) the full name of the person making the pledge; (B) the address of the person making the pledge; (C) the amount of each pledge; (D) the date each pledge was accepted; and (E) a description of any goods or services pledged; (8) the total of all pledges accepted during the period for $50 and less from a person, except those reported under paragraph (7) of this section; (9) for each person making a loan or loans to the officeholder for officeholder purposes, if the total amount loaned by the person during the period is more than $50: (A) the full name of the person or financial institution making the loan; (B) the address of the person or financial institution making the loan; (C) the amount of the loan; (D) the date of the loan; (E) the interest rate; (F) the maturity date; (G) the collateral for the loan, if any; and (H) if the loan has guarantors: (i) the full name of each guarantor; (ii) the address of each guarantor; (iii) the principal occupation of each guarantor; (iv) the name of the employer of each guarantor; and (v) the amount guaranteed by each guarantor; (10) the total amount of loans accepted during the period for $50 and less from persons other than financial institutions engaged in the business of making loans for more than one year, except those reported under paragraph (9) of this section; (11) for political expenditures made during the reporting period that total more than $50 to a single payee, other than expenditures reported under paragraph (5) of this section: (A) the full name of the person to whom each expenditure was made; (B) the address of the person to whom the expenditure was made; (C) the date of the expenditure; (D) the purpose of the expenditure, for example, the nature of the goods or services for which the expenditure was made; and (E) the amount of the expenditure; (12) for each political expenditure of any amount made out of personal funds for which reimbursement from political contributions is intended: (A) the full name of the person to whom each expenditure was made; (B) the address of the person to whom the expenditure was made; (C) the date of each expenditure; (D) the purpose of the expenditure, for example, the nature of the goods or services for which the expenditure was made; (E) a declaration that the expenditure was made from personal funds; (F) a declaration that reimbursement from political contributions is intended; and (G) the amount of the expenditure; (13) for each non-political expenditure made from political contributions, other than expenditures reported under paragraph (5) of this section: (A) the date of each payment; (B) the full name of the person to whom the payment was made; (C) the address of the person to whom the payment was made; (D) the purpose of the expenditure, for example, the nature of the goods or services for which the payment was made; and (E) the amount of the payment; (14) for each candidate or other officeholder who benefits from a direct campaign expenditure made by the officeholder during the reporting period: (A) the name of the candidate or officeholder; and (B) the office sought or held by the candidate or officeholder; (15) for each political contribution from an out-of-state political committee, the information required by sec.22.7 of this title (relating to Contribution from Out-of-State Committee); (16) the following total amounts: (A) the total principal amount of all outstanding loans as of the last day of the reporting period; (B) the total amount or an itemized listing of political contributions (other than pledges, loans, or guarantees of loans) of $50 and less; (C) the total amount of all political contributions (other than pledges, loans, or guarantees of loans); (D) the total amount or an itemized listing of the political expenditures of $50 and less; and (E) the total amount of all political expenditures; (17) if applicable, a statement that no reportable activity occurred during the reporting period; and (18) an affidavit, executed by the officeholder, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.281. Special Session Report by Certain Officeholders. (a) A statewide officeholder or member of the legislature who accepts a political contribution during the period that begins on the date the governor signs a proclamation calling a special legislative session and ends on the date of final adjournment must file a special session report. (b) A special session report is a report of contributions only, not expenditures. Expenditures made during the period covered by a special session report are required to be reported in the next applicable sworn report of contributions and expenditures. (c) Contributions reported in a special session report are not to be reported in any other report. (d) A special session report must be filed with the commission no later than the 30th day after the date of final adjournment of the special session. (e) A determination to accept or refuse a political contribution received during the period covered by a special session report shall be made no later than the third day after the date the contribution is received. (f) A contribution that is refused under subsection (e) of this section must be returned no later than the 30th day after the date of final adjournment. A contribution not returned by that date will be deemed accepted. (g) An officeholder is not required to file a separate special session report if another report is due not later than the tenth day after the date a report required under this section would be due. sec.20.283. Contents of Special Session Report. A report required by sec.20.281 of this title (relating to Special Session Report by Certain Officeholders) shall include the following information: (1) the officeholder's name; (2) the officeholder's address; (3) the office held; (4) the date each contribution was accepted; (5) the name of each person making a contribution; (6) the address of each person making a contribution; (7) the amount of each contribution accepted during the period; (8) a description of any in-kind contribution; and (9) an affidavit, executed by the officeholder, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.285. Annual Report of Unexpended Contributions by Former Officeholder. (a) A person who ceases to be an officeholder at a time when he or she does not have a campaign treasurer appointment on file must file an annual report if he or she has unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions after filing the last required report as an officeholder. (b) A report under this section shall be filed not earlier than January 1 and not later than January 15 of each year following the year in which the former officeholder filed the last required report as an officeholder, unless the requirement to file annual reports has ended as provided by subsection (d) of this section. (c) The report is filed with the authority with whom the former officeholder's campaign treasurer appointment was required to be filed. (d) The requirement to file annual reports ends after: (1) all political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions have been disbursed and reported on an annual report, or (2) the former officeholder has complied with sec.20. 289 of this title (relating to Disposition of Unexpended Contributions) and sec.20.291 of this title (relating to Report of Final Disposition of Unexpended Contributions). sec.20.287. Contents of Annual Report. (a) An annual report of unexpended contributions shall include the following information: (1) the officeholder's full name; (2) the officeholder's address; (3) for each payment made by the officeholder from unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions during the previous year: (A) the full name of each person to whom a payment was made; (B) the address of each person to whom a payment was made; (C) the date of each payment; (D) the nature of the goods or services for which the payment was made; and (E) the amount of the payment; (4) the total amount of unexpended political contributions as of December 31 of the previous year; (5) the total amount of interest and other income earned on unexpended political contributions during the previous year; and (6) an affidavit, executed by the former officeholder, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.289. Disposition of Unexpended Contributions. (a) A former officeholder who did not have a campaign treasurer appointment on file at the time he or she ceased to be an officeholder may not retain unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions for more than six years after the date he or she ceased to be an officeholder, except as provided by subsection (f) of this section. (b) During the six-year period after the date a former officeholder ceased to be an officeholder, the former officeholder covered by subsection (a) of this section may disburse unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions for a purpose listed in sec.20.237 of this title (relating to Final Disposition of Unexpended Contributions). (c) A former officeholder may not convert political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions to personal use. (d) At the end of the six-year period, a former officeholder covered by subsection (a) of this section must dispose of unexpended political contributions, unexpended interest or other income earned from political contributions, and assets purchased with political contributions or interest or other income earned from political contributions in one of the ways listed in sec.20.237 of this title (relating to Final Disposition of Unexpended Contributions). (e) A former officeholder must make the disposition required by subsection (c) of this section by the tenth day after the end of the six-year period. (f) The six-year period prescribed by subsection (a) of this section ceases to run if the former officeholder files a campaign treasurer appointment during the period. sec.20.291. Report of Final Disposition of Unexpended Contributions. (a) A former officeholder who disposes of unexpended contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions under sec.20.289 of this title (relating to Disposition of Unexpended Contributions) is required to file a report of the final disposition. (b) A report of final disposition of unexpended contributions must be filed no later than the 30th day after the end of the six-year period prescribed by sec.20.289(a) of this title. (c) The report shall be filed with the authority with whom the former officeholder's last required report as an officeholder was required to be filed. (d) The report shall cover the period that begins on the first day after the period covered by the last report required through the day a report under this section is filed. sec.20.293. Contents of Report of Final Disposition of Unexpended Contributions. (a) A report of final disposition of unexpended contributions shall include the following information: (1) the officeholder's full name; (2) the officeholder's address; (3) the full name of each person to whom a payment from unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions was made; (4) the address of each person to whom such a payment was made; (5) the date of each payment; (6) the nature of the goods and services received for each payment; (7) the amount of each payment; and (8) an affidavit, executed by the former officeholder, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.295. Contribution of Unexpended Political Contributions to Candidate or Political Committee. (a) A former officeholder who contributes unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions to a candidate or political committee must report the contribution on an annual report of unexpended contributions or on a report of final disposition of unexpended contributions, as applicable. The former officeholder must also report the contribution under subsection (b) of this section. (b) A former officeholder who contributes unexpended political contributions, unexpended interest or other income earned from political contributions, or assets purchased with political contributions or interest or other income earned from political contributions to a candidate or political committee must report each contribution to the filing authority with whom the candidate or political committee receiving the contribution files reports. (1) The former officeholder must report such contributions on the form used for reports of contributions and expenditures a specific-purpose committee. (2) The former officeholder must file the report by the due date for the report in which the candidate or political committee receiving the contribution must report the receipt of the contribution. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333514 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter E. Reports by a Specific-Purpose Committee 1 TAC sec.sec.20.301, 20.303, 20.305, 20.307, 20.309, 20.311, 20. 313, 20.315, 20.317, 20.319, 20.321, 20.323, 20.325, 20.327, 20.329, 20.331, 20.333, 20.335, 20.337, 20.339, 20.341, 20.343 The Texas Ethics Commission adopts new sec.sec. 20.301, 20.303, 20.305, 20. 307, 20.309, 20.311, 20.313, 20.315, 20.317, 20.319, 20.321, 20.323, 20.325, 20.327, 20.329, 20.331, 20.333, 20.335, 20.337, 20.339, 20.341, and 20.343, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. These sections are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7034). The changes are primarily non-substantive in nature; however, sec.sec.20.305, 20.309, 20.331, and 20.339, have been revised with additional language. The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.301. Thresholds for Campaign Treasurer Appointment. (a) A specific-purpose committee may not accept political contributions exceeding $500 and may not make or authorize political expenditures exceeding $500 without filing a campaign treasurer appointment with the appropriate filing authority. (b) A specific-purpose committee may not knowingly make or authorize campaign contributions or campaign expenditures exceeding $500 to support or oppose a candidate in a primary or general election for an office listed below unless the committee's campaign treasurer appointment was filed not later than the 30th day before the appropriate election day: (1) a statewide office; (2) a seat in the state legislature; (3) a seat on the state board of education; or (4) a multi-county district office. Campaign Treasurer. (a) A specific-purpose committee may appoint a campaign treasurer at any time before exceeding the thresholds described in sec.20.301(a) of this title (relating to Thresholds for Campaign Treasurer Appointment). (b) After a specific-purpose committee appoints a campaign treasurer, the campaign treasurer must comply with all the requirements of this subchapter, even if the committee has not yet exceeded $500 in political contributions or expenditures. (c) With the exception of the campaign treasurer appointment, the individual named as a committee's campaign treasurer is legally responsible for filing all reports of the specific-purpose committee, including a report following the termination of his or her appointment as campaign treasurer. Assistant Campaign Treasurer. (a) A specific-purpose committee for supporting or opposing a candidate for a statewide office, the state legislature, the state board of education, or a multi-county district office or a statewide or district measure may appoint an assistant campaign treasurer by written appointment filed with the commission. (b) A statewide measure is a measure to be voted on by all eligible voters in the state. (c) A district measure is a measure to be voted on by the voters of a district. (d) The assistant campaign treasurer has the same authority as the campaign treasurer. However, if the campaign treasurer appointment is terminated the assistant campaign treasurer no longer has authority to act as the campaign treasurer. (e) The campaign treasurer, not the assistant campaign treasurer, is liable for any penalties assessed by the commission for late reports or incomplete reports or for failure to file a report. (f) Section 20.315 of this title (relating to Termination of Campaign Treasurer Appointment) and sec.20.317 of this title (relating to Termination Report) apply to the appointment and removal of an assistant campaign treasurer. sec.20.307. Name of Specific-Purpose Committee. The name of a specific-purpose committee that supports a candidate for or an officeholder of a statewide office, the state legislature, the state board of education, or a multi-county district office, must include the full name of that candidate or officeholder. sec.20.309. Contents of Specific-Purpose Committee Campaign for a specific- purpose committee shall include the following information: (1) the full name of the specific-purpose committee; (2) the address of the specific-purpose committee; (3) the full name of the person appointing the campaign treasurer; (4) the following information for the individual appointed campaign treasurer and, if an assistant campaign treasurer is appointed, for that individual also: (A) the individual's full name; (B) the individual's residence or business street address; (C) if the individual's mailing address is different from the street address provided, the mailing address for the individual; and (D) the individual's telephone number; (5) for each candidate supported or opposed by the specific-purpose committee: (A) the full name of the candidate; (B) the office sought by the candidate; and (C) an indication whether the specific-purpose committee supports or opposes the candidate; (6) for each officeholder assisted by the specific-purpose committee: (A) the full name of the officeholder; (B) the office held by the officeholder; and (C) an indication that the specific-purpose committee assists the officeholder; (7) for each measure supported or opposed by the specific-purpose committee: (A) a description of the measure; and (B) an indication whether the specific-purpose committee supports or opposes the measure; and (8) the signature of the individual appointed campaign treasurer. sec.20.311. Updating Certain Information on the Campaign Treasurer Appointment. (a) Except as provided by subsection (b) of this section, if there is a change in any information that is required to be reported in a specific-purpose committee's campaign treasurer appointment, the campaign treasurer must notify the filing authority of the change no later than the tenth day after the date on which the change occurs. (b) The campaign treasurer must report a change in the name of or office sought by a candidate whom the specific-purpose committee supports or opposes within 24 hours of the change. sec.20.313. Converting to a General-Purpose Committee. (a) A specific-purpose committee that changes its operation and becomes a general-purpose committee is subject to the requirements applicable to a general-purpose committee as of the date it files its campaign treasurer appointment as a general-purpose committee with the commission. (b) The campaign treasurer of a specific-purpose committee that becomes a general-purpose committee must deliver written notice of its change in status to the authority with whom the committee was required to file as a specific-purpose committee. (c) The notice required under subsection (b) of this section is due no later than the next deadline for filing a report under this subchapter that: (1) occurs after the committee's change in status; and (2) would be applicable to the political committee if it were still a specific-purpose committee. (d) The notice must state that future reports will be filed with the commission. (e) The notice required under subsection (b) of this section is in addition to the requirement that the new general-purpose committee file a campaign treasurer appointment with the commission before it exceeds $500 in political expenditures or $500 in political contributions as a general-purpose committee. (f) As provided by sec.20.401 of this title (relating to Thresholds for Appointment of Campaign Treasurer by a General-Purpose Committee), the new general-purpose committee may not make political expenditures totaling more than $500 unless the committee has accepted political contributions from at least ten people and has filed its campaign treasurer appointment as a general-purpose committee not later than the 60th day before the date the expenditure is made that causes the committees total expenditures to exceed $500. sec.20.315. Termination of Campaign Treasurer Appointment. (a) A specific-purpose committee may terminate a campaign treasurer appointment at any time by: (1) notifying the filing authority in writing of the termination; (2) filing a campaign treasurer appointment for a successor campaign treasurer; or (3) filing a dissolution report. (b) A committee's campaign treasurer may resign by immediately notifying both the appointing authority and the filing authority in writing. (c) Except as provided by subsection (e) of this section, if the campaign treasurer resigns or otherwise leaves the position, the termination is effective on the date the committee actually receives the notice or on the date the filing authority actually receives the notice, whichever is later. (d) Section 20.23 of this title (relating to Timeliness of Action by Mail) does not apply to subsection (c) of this section. (e) For purposes of the termination report required by sec.20. 317 of this title (relating to Termination Report), a campaign treasurer's resignation is effective on the date the treasurer resigns as provided by subsection (b) of this section. (f) Section 20.23 of this title (relating to Timeliness of Action by Mail) applies to subsection (e) of this section. (g) A termination of a specific-purpose committee's campaign treasurer appointment and the filing of the termination report by themselves do not dissolve the specific-purpose committee. A specific-purpose committee can be dissolved only by filing a dissolution report. sec.20.317. Termination Report. (a) If the campaign treasurer appointment of a specific-purpose committee is terminated, the campaign treasurer whose appointment was terminated shall file a termination report that contains the information listed in sec.20.331 of this title (relating to Contents of Specific-Purpose Committee Sworn Report of Contributions and Expenditures). (b) A termination report is not required if the termination occurs on the last day of a reporting period under this subchapter and the campaign treasurer files a report for that period as provided by this subchapter. (c) A termination report covers a period that begins on the day after the period covered by the last report of contributions and expenditures required to be filed under this subchapter (other than a telegram report or a special session report) or the day the campaign treasurer appointment was filed (if the committee has not yet filed a report of contributions and expenditures). The period covered by the report ends on the day the termination of the campaign treasurer appointment is effective. (d) The report shall be filed not later than the tenth day after the date the termination of the campaign treasurer appointment is effective. (e) Activity reported in a termination report is not required to be included in any subsequent report of the specific-purpose committee that is filed under this subchapter. sec.20.319. Notice to Candidate or Officeholder. (a) The campaign treasurer of a specific-purpose committee that accepts political contributions or makes political expenditures for a candidate or officeholder shall notify the affected candidate or officeholder of that fact in accordance with this section. (b) This section does not apply to a specific-purpose committee that has not appointed a campaign treasurer in accordance with sec.20.303(b) of this title (relating to Appointment of Campaign Treasurer). (c) The notice required by this section shall be in writing and shall include: (1) the full name of the specific-purpose committee; (2) the address of the specific-purpose committee; (3) the full name of the specific-purpose committee's campaign treasurer; (4) the address of the specific-purpose committee's campaign treasurer; (5) a statement that the committee is a specific-purpose committee; and (6) a statement that the specific-purpose committee has accepted political contributions or has made political expenditures on behalf of the candidate or officeholder. (d) The notice required by this section shall be delivered no later than the end of the reporting period in which the reportable activity occurs. sec.20.321. Involvement in More Than One Election by Certain Specific-Purpose Committees. A specific-purpose committee that supports or opposes more than one candidate or measure may be required to file reports covering overlapping periods. If so, the committee is only required to report activity occurring during the period of overlap on the first report on which the activity is required to be reported. sec.20.323. Semiannual Reports. (a) The campaign treasurer of a specific-purpose committee shall file semiannual reports as provided by this section. (b) One semiannual report is due no earlier than July 1 and no later than July 15. (1) The period covered by a report under this subsection begins on the later of the following dates, as applicable: (A) January 1; (B) the day the committee's campaign treasurer appointment was filed, if this is the committee's first report filed under this subchapter (other than a telegram report or a special session report); or (C) the first day after the period covered by the last report required by this subchapter (other than a telegram report or a special session report). (2) The period covered by a report under this subsection ends on June 30. (c) One semiannual report is due no earlier than January 1 and no later than January 15. (1) The period covered by a report under this subsection begins on the later of the following dates, as applicable: (A) July 1; (B) the day the committee's campaign treasurer appointment was filed, if this is the committee's first report filed under this subchapter (other than a telegram report or a special session report); or (C) the first day after the period covered by the last report required by this subchapter (other than a telegram report or a special session report). (2) The period covered by a report under this subsection ends on December 31. sec.20.325. Pre-election Reports. (a) The campaign treasurer of a specific-purpose committee that supports or opposes a candidate or a measure in an election shall file pre-election reports as provided by subsections (d) and (e) of this section. (b) For purposes of this section, supporting or opposing a candidate or a measure in an election means accepting political contributions or making political expenditures to support or oppose the candidate or measure. (c) The campaign treasurer of a specific-purpose committee that has declared an intention to file under the modified schedule in accordance with sec.20.329 of this title (relating to Modified Reporting) and that remains eligible to file under the modified schedule is not required to file pre-election reports. (d) A specific-purpose committee that supports or opposes a candidate or measure in an election during the reporting period set out in the next sentence of this subsection must file a report under this subsection. The report required by this subsection covers a period that begins on either the day the committee's campaign treasurer appointment was filed or the first day after the period covered by the last report (other than a telegram report or special session report) filed under this subchapter, as applicable, and ends on the 40th day before the election. The report due under this subsection shall be filed no later than the 30th day before the election. (e) A specific-purpose committee that was required to file a pre-election report under subsection (d) of this section must file a report under this subsection by the eighth day before the election. The report shall cover a period that begins on the 39th day before the election and ends on the tenth day before the election. The report is due no later than the eighth day before the election. (f) A committee that was not required to file a report under subsection (d) of this section is required to file a report by the eighth day before the election if the committee supports or opposes a candidate or measure during the period that begins on the 39th day before the election and ends on the tenth day before the election. A report required under this subsection shall cover a period that begins on either the day the committee's campaign treasurer appointment was filed or the first day after the period covered by the last report (other than a telegram report or special session report) filed under this subchapter, as applicable, and ends on the tenth day before the election. sec.20.327. Runoff Report. (a) A specific-purpose committee that supports or opposes a candidate or measure in an election and in an ensuing runoff election shall file a runoff report, except as provided by subsection (b) of this section. (b) A specific-purpose committee that has declared an intention to file under the modified schedule in accordance with sec.20.329 of this title (relating to Modified Reporting) and that remains eligible to file under the modified schedule is not required to file a runoff report. (c) A runoff report is due no later than the eighth day before the runoff election. (d) A runoff report covers the period that begins on the ninth day before the date of the main election and ends on the tenth day before the runoff. (e) For purposes of this section, supporting or opposing a candidate or a measure in an election means accepting political contributions or making political expenditures to support or oppose the candidate or measure. sec.20.329. Modified Reporting. (a) A specific-purpose committee that would otherwise be required to file pre- election reports and a runoff report, if necessary, may choose to file under the modified schedule if the committee does not intend to accept more than $500 in political contributions or make more than $500 in political expenditures (excluding filing fees) in connection with any election in an election cycle. (b) Under the modified schedule, the campaign treasurer of a specific-purpose committee is not required to file pre-election reports or a runoff report. (c) To select modified filing, a specific-purpose committee must file a declaration of the committee's intent not to accept more than $500 in political contributions or make more than $500 in political expenditures (excluding filing fees) in connection with the election. The declaration must include a statement that the committee understands that if either one of those limits is exceeded, the committee's campaign treasurer will be required to file pre-election reports and, if necessary, a runoff report. (d) A declaration under subsection (c) of this section is filed with the committee's campaign treasurer appointment. (e) To file under the modified schedule, a specific-purpose committee must file the declaration required under subsection (c) of this section no later than the 30th day before the first election to which the declaration applies. A declaration filed under subsection (c) of this section is valid for one election cycle only. (f) Except as provided by subsection (g) of this section, a specific-purpose committee's campaign treasurer must file pre-election reports and, if necessary, a runoff report under the schedule set out in sec.20.325 of this title (relating to Pre-election Reports) and sec.20.327 of this title (relating to Runoff Report) if the committee exceeds either of the $500 limits for modified reporting. (g) If a specific-purpose committee exceeds either of the $500 limits for modified reporting after the 30th day before the election, the committee's campaign treasurer must file a report not later than 48 hours after exceeding the limit. (1) The period covered by a 48-hour report shall begin either on the day the committee's campaign treasurer appointment was filed (if it is the committee's first report of contributions and expenditures) or on the first day after the period covered by the last report (other than a telegram report or special session report) filed under this subchapter, as applicable. (2) The period covered by a 48-hour report shall continue through the day the committee exceeded one of the limits for modified reporting. (h) A specific-purpose committee that exceeds either of the $500 limits for modified reporting after the 30th day before the election and on or before the tenth day before the election must file a report under sec.20.325(f) of this title (relating to Pre-election Reports), in addition to any required telegram reports. sec.20.331. Contents of Specific-Purpose Committee Sworn Report of Contributions and Expenditures. Semiannual reports, pre-election reports, and runoff reports must cover reportable activity during the reporting period and must include the following information: (1) the full name of the specific-purpose committee; (2) the address of the specific-purpose committee; (3) the full name of the specific-purpose committee's campaign treasurer; (4) the residence or business street address of the specific-purpose committee's campaign treasurer; (5) the committee campaign treasurer's telephone number; (6) the identity and date of the election for which the report is filed, if applicable; (7) for each candidate supported or opposed by the specific-purpose committee: (A) the full name of the candidate; (B) the office sought by the candidate; and (C) an indication of whether the committee supports or opposes the candidate; (8) for each officeholder assisted by the specific-purpose committee: (A) the full name of the officeholder; (B) the office held by the officeholder; and (C) an indication of whether the committee supports or opposes the officeholder; (9) for each measure supported or opposed by the specific-purpose committee: (A) a description of the measure; and (B) an indication of whether the committee supports or opposes the measure; (10) for each political expenditure by the committee that was made as a political contribution to a candidate, officeholder, or another political committee and that was returned to the specific-purpose committee during the reporting period: (A) the amount returned; (B) the full name of the person to whom the expenditure was originally made; (C) the address of the person to whom the expenditure was originally made; and (D) the date the expenditure was returned to the specific-purpose committee; (11) on a separate page, the following information for each expenditure from political contributions made to a business in which the candidate has a participating interest of more than 10%, holds a position on the governing body of the business, or serves as an officer of the business: (A) the full name of the business to which the expenditure was made; (B) the address of the business to which the expenditure was made; (C) the date of the expenditure; (D) the nature of the goods or services for which the expenditure was made; and (E) the amount of the expenditure; (12) if the specific-purpose committee supports or opposes measures exclusively, for each contribution accepted from a labor organization or corporation, as defined by sec.20.1 of this title (relating to Definitions): (A) the date each contribution was accepted; (B) the full name of the corporation or labor organization making the contribution; (C) the address of the corporation or labor organization making the contribution; and (D) the amount of the contribution; and (E) a description of any in-kind contribution; (13) for each person from whom the specific-purpose committee accepted a political contribution (other than a pledge, loan, or a guarantee of a loan) of more than $50 in value or political contributions (other than pledges, loans, or guarantees of loans) that total more than $50 in value: (A) the full name of the person; (B) the address of the person; (C) the total amount of contributions; (D) the date each contribution was accepted; and (E) a description of any in-kind contribution; (14) for each person from whom the specific-purpose committee accepted a pledge or pledges to provide more than $50 in money or to provide goods or services worth more than $50: (A) the full name of the person making a pledge; (B) the address of the person making a pledge; (C) the amount of the pledge; (D) the date each pledge was accepted; and (E) a description of any goods or services pledged; (15) the total of all pledges accepted during the period for $50 and less from a person, except those reported under paragraph (14) of this section; (16) for each person making a loan or loans to the specific-purpose committee for campaign or officeholder purposes if the total amount loaned by the person during the period is more than $50: (A) the full name of the person or financial institution making the loan; (B) the address of the person or financial institution making the loan; (C) the amount of the loan; (D) the date of the loan; (E) the interest rate; (F) the maturity date; (G) the collateral for the loan, if any; and (H) if the loan has guarantors: (i) the full name of each guarantor; (ii) the address of each guarantor; (iii) the principal occupation of each guarantor; (iv) the name of the employer of each guarantor; and (v) the amount guaranteed by each guarantor; (17) the total amount of loans accepted during the period for $50 and less from persons other than financial institutions engaged in the business of making loans for more than one year, except those reported under paragraph (16) of this section; (18) for political expenditures made during the reporting period that total more than $50 to a single payee: (A) the full name of the person to whom each expenditure was made; (B) the address of the person to whom the expenditure was made; (C) the date of the expenditure; (D) the purpose of the expenditure, for example, the goods or services for which the expenditure was made; and (E) the amount of the expenditure; (19) for each direct campaign expenditure benefiting a candidate or officeholder, except for a direct campaign expenditure made by a committee supporting only one candidate or officeholder: (A) the name of the candidate or officeholder; and (B) the office sought or held by the candidate or officeholder. (20) for each non-political expenditure made from political contributions, other than expenditures reported under paragraph (11) of this section: (A) the date of the payment; (B) the full name of the person to whom the payment was made; (C) the address of the person to whom the payment was made; (D) the nature of the goods or services for which the payment was made; and (E) the amount of the payment; (21) for each political contribution accepted from an out-of-state political committee, the information required by sec.22.7 of this title (relating to Contribution from Out-of-State Committee); (22) the following total amounts: (A) the total principal amount of all outstanding loans as of the last day of the reporting period; (B) the total amount or an itemized listing of political contributions (other than pledges, loans, or guarantees of loans) of $50 and less; (C) the total amount of all political contributions (other than pledges, loans, or guarantees of loans); (D) the total amount or an itemized listing of the political expenditures of $50 and less; and (E) the total amount of all political expenditures; (23) if applicable, a statement that no reportable activity occurred during the reporting period; and (24) an affidavit, executed by the campaign treasurer, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.333. Telegram Report by Certain Specific-Purpose Committees. (a) As provided by subsection (b) of this section, certain specific-purpose committees must file reports about certain contributions accepted during the period that begins on the ninth day before an election and ends at noon on the second day before an election. Reports under this section are known as "telegram" reports, although they may be filed by hand or by telephonic facsimile machine as well as by telegram. (b) Campaign treasurers for the following specific-purpose committees must file telegram reports: (1) a specific-purpose committee for supporting or opposing a candidate for state senator that, during the period described in subsection (a) of this section, accepts one or more political contributions from a person that in the aggregate exceed $1,000; and (2) a specific-purpose committee for supporting or opposing a candidate for state representative that, during the period described in subsection (a) of this section, accepts political contributions from a person that in the aggregate exceed $200. (c) The campaign treasurer of a specific-purpose committee must file a report no later than 48 hours after the committee accepts a contribution from a person that triggers the requirement to file the telegram report. (d) The report filed under subsection (c) of this section may be delivered by hand, by telegram, or by telephonic facsimile machine. Section 20.23 of this title (relating to Timeliness of Action by Mail) does not apply to a report filed under this section. (e) If, during the reporting period for telegram contributions, a committee receives additional contributions from a person whose previous contribution or contributions have triggered the requirement to file a telegram report during the period, the campaign treasurer for the committee must file an additional telegram report for each such contribution. Each such telegram report is due no later than 48 hours after the committee accepts the contribution. (f) The campaign treasurer of a specific-purpose committee must file a telegram report for each person whose contribution or contributions made during the period for telegram reports exceed the threshold for telegram reports. (g) A campaign treasurer of a specific-purpose committee must also report contributions reported on a telegram report on the next semiannual, pre- election, or runoff report filed, as applicable. sec.20.335. Contents of Telegram Report by a Specific-Purpose Committee Supporting or Opposing a Candidate for State Senator or State Representative. A telegram report shall include the following information: (1) the full name of the specific-purpose committee; (2) the full name of the campaign treasurer; (3) the name of the person making a contribution or contributions that triggered the requirement to file a telegram report; (4) the address of the person making the contribution or contributions; (5) the amount of each contribution; (6) the date each contribution was accepted; and (7) a description of any in-kind contribution. sec.20.337. Special Session Reports by Specific-Purpose Committees. (a) A campaign treasurer of a specific-purpose committee for supporting, opposing, or assisting a candidate for or holder of a statewide office or the legislature that accepts a political contribution during the period that begins on the date the governor signs a proclamation calling a special legislative session and ends on the date of final adjournment must file a special session report. (b) A special session report must be filed with the commission not later than the 30th day after the date of final adjournment of the special session. (c) A special session report is a report of contributions only, not expenditures. Expenditures made during the period covered by a special session report are required to be reported in the next applicable sworn report of contributions and expenditures. (d) Contributions reported in a special session report are not to be reported in any other report. (e) A determination to accept or refuse a political contribution received during the period covered by a special session report shall be made no later than the third day after the date the contribution is received. (f) A contribution that is refused under subsection (e) of this section must be returned no later than the 30th day after the date of final adjournment. A contribution not returned by that date will be deemed accepted. (g) A specific-purpose committee's campaign treasurer is not required to file a separate special session report if another report is due no later than the tenth day after the date a report required under this section would be due. sec.20.339. Contents of the Special Session Report. A report required by sec.20.337 of this title (relating to Special Session Reports by Specific- Purpose Committees) shall include the following information: (1) the specific-purpose committee's full name; (2) the specific-purpose committee's address; (3) the committee campaign treasurer's full name; (4) the campaign treasurer's residence or business street address; (5) for each candidate supported or opposed by the specific-purpose committee: (A) the full name of the candidate; (B) the office sought by the candidate; and (C) an indication of whether the committee supports or opposes the candidate; (6) for each officeholder supported or opposed by the committee: (A) the full name of the officeholder; (B) the office held by the officeholder; and (C) an indication of whether the committee supports or opposes the officeholder; (7) the date each contribution was accepted; (8) the full name of each person making a contribution; (9) the address of each person making a contribution; (10) the amount of each contribution accepted during the period; (11) a description of any in-kind contribution; and (12) an affidavit, executed by the campaign treasurer, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.341. Dissolution Report. (a) The campaign treasurer of a specific-purpose committee may file a dissolution report at any time that the committee expects no further reportable activity to occur. (b) A dissolution report does not have to be filed by a designated deadline. (c) Filing a dissolution report: (1) relieves the campaign treasurer of the duty to file additional reports under this subchapter; and (2) terminates the specific-purpose committee's campaign treasurer appointment. sec.20.343. Contents of Dissolution Report. A dissolution report must contain: (1) the information described in sec.20.331 of this title (relating to Contents of Specific-Purpose Committee Sworn Report of Contributions and Expenditures); and (2) the following sworn statement, signed by the specific-purpose committee's campaign treasurer, and properly notarized: "I, the undersigned campaign treasurer, do not expect the occurrence of any further reportable activity by this specific-purpose committee for this or any other campaign or election for which reporting under the Election Code is required. I declare that all of the information required to be reported by me has been reported. I understand that designating a report as a dissolution report terminates the appointment of campaign treasurer. I further understand the circumstances in which the specific-purpose committee may not make or authorize political expenditures or accept political contributions without having an appointment of campaign treasurer on file." This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333513 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter F. Reporting Requirement for a General-Purpose Committee 1 TAC sec.sec.20.401, 20.403, 20.405, 20.407, 20.409, 20.411, 20. 413, 20.415, 20.417, 20.419, 20.421, 20.423, 20.425, 20.427, 20.429, 20.431, 20.433, 20.435, 20.437, 20.439, 20.441 The Texas Ethics Commission adopts new sec.sec.20.401, 20.403, 20.405, 20. 407, 20.409, 20.411, 20.413, 20.415, 20.417, 20.419, 20.421, 20.423, 20.425, 20.427, 20.429, 20.431, 20.433, 20.435, 20.437, 20.439, and 20.441, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. The new sections are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7040). The changes are primarily non-substantive in nature; however, sec.sec.20.407, 20.409, 20.411, and 20.433 have been revised with additional language. The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The sections will set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.401. Thresholds for by a General-Purpose Committee. (a) A general-purpose committee may not accept political contributions exceeding $500 and may not make or authorize political expenditures exceeding $500 without filing a campaign treasurer appointment with the commission. (b) Unless the committee's campaign treasurer appointment was filed not later than the 30th day before the appropriate election day, a general-purpose committee may not knowingly make or authorize campaign contributions or campaign expenditures exceeding $500 to support or oppose a candidate in a primary or general election for the following: (1) a statewide office; (2) a seat in the state legislature; (3) a seat on the state board of education; or (4) a multi-county district office. (c) A general-purpose committee may not make or authorize political expenditures totaling more than $500 unless the committee has: (1) filed its campaign treasurer appointment not later than the 60th day before the date the expenditure is made that causes the total expenditures to exceed $500; and (2) received contributions from at least ten persons. (d) Subsection (c) of this section does not apply to a general-purpose committee that accepts contributions from a multi-candidate political committee (as defined by the Federal Election Campaign Act) that is registered with the Federal Election Commission, provided that the general-purpose committee is in compliance with sec.22.7 of this title (relating to Contribution from Out-of- State Committee). sec.20.403. Reporting Requirements for Certain General-Purpose Committees. (a) A general-purpose committee that is established by a political party's county executive committee is subject to Subchapter I of this chapter (relating to Rules Applicable to a Political Party's County Executive Committee). Subchapter I of this chapter prevails over this subchapter in the case of conflict. (b) A general-purpose committee that is the principal political committee of a political party is subject to Subchapter G of this chapter (relating to Rules Applicable to a Principal Political Committee of a Political Party). Subchapter G of this chapter prevails over this subchapter in the case of conflict. (c) A general-purpose committee that supports or opposes a candidate for state chair of a political party is subject to Subchapter K of this chapter (relating to Reports by Political Committees Supporting or Opposing a Candidate for State Chair of Political Party). Subchapter K of this chapter prevails over this subchapter in the case of conflict. sec.20.405. Campaign Treasurer Political Committee. (a) A general-purpose committee may appoint a campaign treasurer at any time before exceeding the thresholds described in sec.20.401(a) of this title (relating to Thresholds for Appointment of Campaign Treasurer by a General- Purpose Committee). (b) After a general-purpose committee appoints a campaign treasurer, the campaign treasurer must comply with all the requirements of this subchapter, even if the committee has not yet exceeded $500 in political contributions or expenditures. (c) With the exception of the campaign treasurer appointment, the individual named as a committee's campaign treasurer is legally responsible for filing all reports of the general-purpose committee, including a report following the termination of his or her appointment as campaign treasurer. Assistant Campaign Treasurer. (a) A general-purpose committee may appoint an assistant campaign treasurer by written appointment filed with the commission. (b) The assistant campaign treasurer has the same authority as the campaign treasurer. However, if the campaign treasurer appointment is terminated the assistant campaign treasurer no longer has authority to act as the campaign treasurer. (c) The campaign treasurer, not the assistant campaign treasurer, is liable for any penalties assessed by the commission for late reports or incomplete reports or for failure to file a report. (d) Section 20.415 of this title (relating to Termination of Campaign Treasurer Appointment) and sec.20. 417 of this title (relating to Termination Report) apply to the appointment and removal of an assistant campaign treasurer. sec.20.409. Name of General-Purpose Committee. (a) The name of a general-purpose committee must include the full name of each corporation, labor organization, or other association or legal entity other than an individual that directly establishes, administers, or controls the general- purpose committee. (b) A corporation, labor organization, or other association or legal entity that "directly establishes, administers, or controls" a general-purpose committee is one that has: (1) the authority to actively participate in determining to whom the general- purpose committee makes political contributions or for what purposes the general-purpose committee makes political expenditures; or (2) the authority to designate a person to a position of authority with the general-purpose committee, including that of an officer or director of the general-purpose committee. (c) The name of an entity used in the name of a general-purpose committee may be a commonly recognized acronym by which the entity is known. (d) The name of a general-purpose committee may not be the same as or deceptively similar to the name of any other general-purpose committee whose campaign treasurer appointment is filed with the commission. The commission shall determine whether the name of a general-purpose political committee is in violation of this prohibition and shall immediately notify the campaign treasurer of the offending political committee of that determination. The campaign treasurer of the political committee must file a name change with the commission not later than the 14th day after the date of notification. sec.20.411. Contents of General-Purpose Committee Campaign for a general- purpose committee shall include the following information: (1) the full name of the general-purpose committee, and, if the name is an acronym, the words the acronym represents; (2) the address of the general-purpose committee; (3) the full name of the person appointing the campaign treasurer; (4) the following information for the individual appointed campaign treasurer and, if an assistant campaign treasurer is appointed, for that individual as well: (A) the individual's full name; (B) the individual's residence or business street address; (C) if the individual's mailing address is different from the street address provided, the mailing address for the individual; and (D) the individual's telephone number; (5) one of the following: (A) the full name and any acronym of the name that is used in the name of the general-purpose committee pursuant to sec.20.409 of this title (relating to Name of general-purpose Committee), if applicable; or (B) the full name of each person who determines to whom the general-purpose committee makes contributions; or (C) the full name of each person who determines for what purposes the general- purpose committee makes expenditures; (6) the name of each other general-purpose committee to which the general- purpose committee intends to make political contributions; (7) an indication whether the general-purpose committee will file under the regular reporting schedule pursuant to sec.sec.20.423, 20.425, and 20.427 of this title (relating to Semiannual Reports; Pre-election Reports; Runoff Report) or under the monthly schedule pursuant to sec.20.429 of this title (relating to the Option to File Monthly); and (8) the signature of the individual appointed campaign treasurer. sec.20.413. Updating Information on the Campaign Treasurer Appointment. (a) The campaign treasurer must notify the commission in writing of any change in the campaign treasurer's address no later than the tenth day after the date on which the change occurs. (b) If any of the information required to be included in the general-purpose committee's appointment changes, excluding changes in the campaign treasurer's address, the campaign treasurer shall file a corrected appointment with the commission no later than the 30th day after the date the change occurs. sec.20.415. Termination of Campaign Treasurer Appointment. (a) A general-purpose committee may terminate a campaign treasurer appointment at any time by: (1) notifying the commission in writing of the termination; (2) filing a campaign treasurer appointment for a successor campaign treasurer; or (3) filing a dissolution report. (b) A committee's campaign treasurer may resign by immediately notifying both the appointing authority and the filing authority in writing. (c) If the campaign treasurer resigns or otherwise leaves the position, the termination is effective on the date the committee actually receives the notice or on the date the filing authority actually receives the notice, whichever is later. Section 20.23 of this title (relating to Timeliness of Action by Mail) does not apply to this subsection. (d) For purposes of the termination report required by sec.20.417 of this title (relating to Termination Report), a campaign treasurer's resignation is effective on the date the treasurer resigns, as provided by subsection (b) of this section. Section 20.23 of this title (relating to Timeliness of Action by Mail) applies to this subsection. (e) A termination of a general-purpose committee's campaign treasurer appointment and the filing of the termination report by themselves do not dissolve the general-purpose committee. A general-purpose committee can be dissolved only by filing a dissolution report with the commission. sec.20.417. Termination Report. (a) If the campaign treasurer appointment of a general-purpose committee is terminated, the campaign treasurer whose appointment was terminated shall file a termination report that contains the information listed in sec.20.433 of this title (relating to Contents of General-Purpose Committee Sworn Report of Contributions and Expenditures). (b) A termination report is not required if the termination occurs on the last day of a reporting period under this subchapter and the campaign treasurer files a report for that period as provided by this subchapter. (c) A termination report covers a period that begins on either the day after the period covered by the last report of contributions and expenditures required to be filed under this subchapter (other than a telegram report) or the day the campaign treasurer appointment was filed (if the committee has not yet filed a report of contributions and expenditures). The period covered by the report continues through the day the termination of the campaign treasurer appointment is effective. (d) The report shall be filed not later than the tenth day after the date the termination of the campaign treasurer appointment is effective. (e) Activity reported in a termination report is not required to be included in any subsequent report of the general-purpose committee that is filed under this subchapter. sec.20.419. Converting to a Specific-Purpose Committee. (a) A general-purpose committee that changes its operation and becomes a specific-purpose committee is subject to the requirements applicable to a specific-purpose committee as of the date it files its campaign treasurer appointment as a specific-purpose committee. (b) The campaign treasurer of a general-purpose committee that changes its operation and becomes a specific-purpose committee shall deliver written notice of the change in status to the commission. (c) The notice shall identify the filing authority with whom future filings by the committee are expected to be made. (d) The notice required by this section is due not later than the next deadline for filing a report under this subchapter that: (1) occurs after the change in status; and (2) would be applicable to the committee if it were still a general-purpose committee. (e) As provided by sec.20.301 of this title (relating to Thresholds for Campaign Treasurer Appointment), a new specific-purpose committee involved in an election supporting or opposing a candidate for a statewide office, the state legislature, the state board of education, or a multi-county district office in a primary or general election may not accept political contributions exceeding $500 and may not make or authorize political expenditure exceeding $500 unless the committee's campaign treasurer appointment as a specific-purpose committee has been on file at least 30 days before the applicable election day. sec.20.421. Notice to Candidate or Officeholder. (a) The campaign treasurer of a general-purpose committee that accepts political contributions or makes political expenditures for a candidate or officeholder shall notify the affected candidate or officeholder in accordance with this section. (b) This section does not apply to a general-purpose committee that has not appointed a campaign treasurer in accordance with sec.20. 405 of this title (relating to Campaign Treasurer Appointment for a General-purpose Political Committee). (c) The notice required by this section shall be in writing and shall include: (1) the full name of the general-purpose committee; (2) the address of the general-purpose committee; (3) the full name of the general-purpose committee's campaign treasurer; (4) the address of the general-purpose committee's campaign treasurer; (5) a statement that the committee is a general-purpose committee; and (6) a statement that the general-purpose committee has accepted political contributions or has made political expenditures on behalf of the candidate or officeholder. (d) The notice required by this section shall be delivered no later than the end of reporting period in which the reportable activity occurs. sec.20.423. Semiannual Reports. (a) Except as provided by subsection (d) of this section, the campaign treasurer of a general-purpose committee shall file semiannual reports as provided by this section. (b) One semiannual report is due no earlier than July 1 and no later than July 15. (1) The report due by July 15 shall cover a period that begins on either January 1, the day the committee's campaign treasurer appointment was filed, or the first day after the period covered by the last report required to be filed under this subchapter (other than a telegram report), as applicable. (2) The period covered by the report due on July 15 ends on June 30. (c) One semiannual report is due no earlier than January 1 and no later than January 15. (1) The report due on January 15 shall cover a period that begins on either July 1, the day the committee's campaign treasurer appointment was filed, or the first day after the period covered by the last report required to be filed under this subchapter (other than a telegram report), as applicable. (2) The period covered by the report due on January 15 ends on December 31. (d) A general-purpose committee that files monthly reports under sec.20.429 of this title (relating to Option to File Monthly) does not file under this section. sec.20.425. Pre-election Reports. (a) A general-purpose committee that accepts political contributions or makes political expenditures in support of or in opposition to a candidate or measure to be voted on in an election shall file pre-election reports as provided by subsections (c) and (d) of this section. (b) A general-purpose committee that files under sec.20.429 of this title (relating to Option to File Monthly) does not file under this section. (c) The first pre-election report is due no later than the 30th day before the election. (1) A general-purpose committee that accepts a political contribution or makes a political expenditure to support or oppose a candidate or measure in the election during the period set out in paragraph (2) of this subsection must file a report under this subsection. (2) The report covers a period that begins on either the day the committee's campaign treasurer appointment was filed or the first day after the period covered by the last report (other than a telegram report) filed under this subchapter, as applicable, and ends on the 40th day before the election. (d) The second pre-election report is due no later than the eighth day before the election. The period covered by this report depends on whether the committee was required to filed a report under subsection (c) of this section. (1) A general-purpose committee that was required to file a pre-election report under subsection (c) of this section must file a report under this subsection by the eighth day before the election. The report shall cover a period that begins on the 39th day before the election and ends the tenth day before the election. (2) A committee that was not required to file a report by the 30th day before the election is required to file a report by the eighth day before the election if the committee accepts a political contribution or makes a political expenditure to support or oppose a candidate or measure during the period that begins on the 39th day before the election and ends on the tenth day before the election. (A) A report that is required to be filed under paragraph (2) of this subsection shall cover a period that begins on either the day the committee's campaign treasurer appointment was filed or the first day after the period covered by the last report (other than a telegram report) filed under this subchapter, as applicable. (B) The period covered by a report under paragraph (2) of this subsection ends on the tenth day before the election. sec.20.427. Runoff Report. (a) A general-purpose committee that accepts political contributions or makes political expenditures to support or oppose a candidate or measure in an election and in an ensuing runoff election shall file a runoff report, except as provided by sec.20.429 of this title (relating to Option to File Monthly). (b) A runoff report is due no later than the eighth day before the runoff election. (c) A runoff report covers the period that begins on the ninth day before the date of the main election and ends on the tenth day before the runoff. sec.20.429. Option to File Monthly. (a) As an alternative to filing semiannual, pre-election, and runoff reports, a general-purpose committee may file monthly reports. (b) A general-purpose committee that files on the monthly filing schedule must file telegram reports required by sec.20.435 of this title (relating to Telegram Reports by Certain general-purpose Committees). (c) To be entitled to file monthly reports, the general-purpose committee must deliver written notice of its intent to file monthly to the commission. (1) A general-purpose committee may file notice of its intent to file monthly at the time the committee files its campaign treasurer appointment. (2) A general-purpose committee that does not file notice of its intent to file monthly at the time it files its campaign treasurer appointment may file the notice only during the period that begins on January 1 and ends on January 15. (d) A general-purpose committee that files monthly reports may revert to the regular filing schedule prescribed by sec.20.423 of this title (relating to Semiannual Reports), sec.20.425 of this title (relating to Pre-election Reports), and sec.20.427 of this title (relating to Runoff Report) by delivering notice to the commission of the general-purpose committee's intent to revert. (1) The notice must be delivered in writing not earlier than January 1 or later than January 15 of the year for which the general-purpose committee intends to revert to the regular reporting schedule. (2) The notice must include a report of all political contributions accepted and all political expenditures made that were not previously reported. sec.20.431. Monthly Reporting. (a) A monthly report filed by a general-purpose committee shall include the information required by sec.20. 433 of this title (relating to Contents of General-Purpose Committee Sworn Report of Contributions and Expenditures), except that the threshold reporting amount of $50 set out in sec.20.433(11), (12)-(16), and (20) of this title (relating to Contents of General-Purpose Committee Sworn Report of Contributions and Expenditures) does not apply to a general-purpose committee reporting monthly. For a general-purpose committee reporting monthly, the threshold reporting amount under sec.20.433(11)-(16) and (20) of this title is $10. (b) A monthly report is due not later than the fifth day of the month following the end of the period covered by the report. (c) Except for the first monthly report filed, a monthly report covers a period that begins on the 26th day of one month and ends on the 25th day of the next month. (d) The beginning day for the first monthly report filed by a general-purpose committee shall be as follows: (1) For a general-purpose committee that has been filing on the regular schedule and chooses monthly filing between January 1 and January 15 of a particular year, the first report will cover a period that begins on January 1 of that year. (2) For a general-purpose committee that elected to file monthly at the time it filed its campaign treasurer appointment, the period covered by the first monthly report depends on the day of the month that the campaign treasurer was appointed. (A) If the general-purpose committee filed its campaign treasurer appointment before the 25th on the month, the first report will cover a period that begins on the day the appointment was filed and ends on the 25th day of the same month. (B) If the general-purpose committee filed its campaign treasurer appointment on or after the 25th of the month, the first report will cover the period that begins on the day the appointment is filed and ends on the 25th day of the next month. sec.20.433. Contents of General-Purpose Committee Sworn Report of Contributions and Expenditures. Semiannual reports, pre-election reports, and runoff reports must cover reportable activity during the reporting period and must include the following information: (1) the full name of the general-purpose committee; (2) the address of the general-purpose committee; (3) the full name of the general-purpose committee's campaign treasurer; (4) the residence or business street address of the general-purpose committee's campaign treasurer; (5) the committee campaign treasurer's telephone number; (6) the identity and date of the election for which the report is filed, if applicable; (7) the full name of each identified candidate or measure or classification by party of candidates supported or opposed by the general-purpose committee and an indication of whether the general-purpose committee supports or opposes each listed candidate, measure, or classification by party of candidates; (8) the full name of each identified officeholder or classification by party of officeholders assisted by the general-purpose committee; (9) if the general-purpose committee supports or opposes measures exclusively, for each contribution accepted from a corporation as defined by sec.20.1 of this title (relating to Definitions): (A) the date each contribution was accepted; (B) the full name of the corporation or labor organization making the contribution; (C) the address of the corporation or labor organization making the contribution; (D) the amount of the contribution; and (E) a description of any in-kind contribution; (10) for each political expenditure by the general-purpose committee that was made as a political contribution to a candidate, officeholder, or another political committee and that was returned to the general-purpose committee during the reporting period: (A) the amount returned; (B) the full name of the person to whom the expenditure was originally made; (C) the address of the person to whom the expenditure was originally made; and (D) the date the expenditure was returned to the general-purpose committee; (11) for each person from whom the general-purpose committee accepted a political contribution other than a pledge or a loan of more than $50 in value, or political contributions other than pledges or loans that total more than $50 in value (or more than $10 for a general-purpose committee reporting monthly): (A) the date each contribution was accepted; (B) the full name of the person making the contribution; (C) the address of the person making the contribution; (D) the principal occupation of the person making the contribution; (E) the amount of the contribution; and (F) a description of any in-kind contribution; (12) for each person from whom the general-purpose committee accepted a pledge or pledges to provide more than $50 in money or to provide goods or services worth more than $50 (more than $10 for a general-purpose committees reporting monthly): (A) the full name of the person making the pledge; (B) the address of the person making the pledge; (C) the principal occupation of the person making the pledge; (D) the amount of each pledge; (E) the date each pledge was accepted; and (F) a description of any goods or services pledged; (13) the total of all pledges accepted during the period for $50 and less from a person, except for those reported under paragraph (12) of this section; (14) for each person making a loan or loans to the general-purpose committee for campaign purposes if the total amount loaned by the person during the period is more than $50 (more than $10 for a general-purpose committee reporting monthly): (A) the full name of the person or financial institution making the loan; (B) the address of the person or financial institution making the loan; (C) the amount of the loan; (D) the date of the loan; (E) the interest rate; (F) the maturity date; (G) the collateral for the loan, if any; and (H) if the loan has guarantors: (i) the full name of each guarantor; (ii) the address of each guarantor; (iii) the principal occupation of each guarantor; (iv) the name of the employer of each guarantor; and (v) the amount guaranteed by each guarantor; (15) the total amount of loans accepted during the period for $50 and less from persons other than financial institutions engaged in the business of making loans for more than one year, except for those reported under paragraph (14) of this section; (16) for political expenditures made during the reporting period that total more than $50 (more than $10 for a general-purpose committee reporting monthly) to a single payee: (A) the full name of the person to whom each expenditure was made; (B) the address of the person to whom the expenditure was made; (C) the date of the expenditure; (D) the purpose of the expenditure, for example, the goods or services for which the expenditure was made; and (E) the amount of the expenditure; (17) for each non-political expenditure made from political contributions: (A) the date of each payment; (B) the full name of the person to whom the payment was made; (C) the address of the person to whom the payment was made; (D) the nature of the goods or services for which the payment was made; and (E) the amount of the payment; (18) for each candidate or officeholder who benefits from a direct campaign expenditure made by the committee: (A) the name of the candidate or officeholder; and (B) the office sought or held by the candidate or officeholder; (19) for each political contribution from an out-of-state political committee, the information required by sec.22.7 of this title (relating to Contribution from Out-of-State Committee); (20) The following total amounts: (A) the total principal amount of all outstanding loans as of the last day of the reporting period; (B) the total amount or an itemized listing of political contributions (other than pledges, loans, or guarantees of loans) of $50 and less ($10 and less for a general-purpose committee reporting monthly); (C) the total amount of all political contributions (other than pledges, loans, or guarantees of loans); (D) the total amount or an itemized listing of the political expenditures of $50 and less ($10 and less for a general-purpose committee reporting monthly); and (E) the total amount of all political expenditures; (21) if applicable, a statement that no reportable activity occurred during the reporting period; and (22) an affidavit, executed by the campaign treasurer, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.435. Telegram Reports by Certain General-Purpose Committees. (a) In addition to other reports required by this chapter, a general-purpose committee must file a telegram report if it makes direct campaign expenditures supporting or opposing a single candidate that in the aggregate exceed $1,000 or a group of candidates that in the aggregate exceed $15,000 during the period for telegram reports. (b) The period for telegram reports begins on the ninth day before election day and ends at noon on the second day before election day. (c) A report under this section may be filed by telegram or telephonic facsimile machine or by hand. (d) A report under this section must be filed with the commission not later than 48 hours after the expenditure is made. (e) Section 20.23 of this title (relating to Timeliness of Action by Mail) does not apply to this section. (f) The report does not have to be on a form issued by the commission. (g) Reports required by this section need not include an affidavit. (h) Contributions reported under this section must be reported again in the next applicable sworn report of contributions and expenditures. sec.20.437. Contents of Telegram Report. A report required by sec.20.435 of this title (relating to Telegram Reports by Certain General-Purpose Committees) shall include the following information: (1) the full name of the general-purpose committee; (2) the full name of the campaign treasurer; (3) the amount of each direct campaign expenditure; (4) the date of each direct campaign expenditure; (5) a description of the goods or services for which each direct campaign expenditure was made; and (6) the identification of the candidates or group of candidates benefiting from the direct campaign expenditure. sec.20.439. Dissolution Report. (a) The campaign treasurer of a general-purpose committee may file a dissolution report at any time that the committee expects no further reportable activity to occur. (b) A dissolution report does not have to be filed by a designated deadline. (c) Filing a dissolution report: (1) relieves the campaign treasurer of the duty to file additional reports under this subchapter; and (2) terminates the general-purpose committee's campaign treasurer appointment. sec.20.441. Contents of Dissolution Report. A dissolution report must contain: (1) the information listed in sec.20.433 of this title (relating to Contents of General-Purpose Committee Sworn Report of Contributions and Expenditures); and (2) the following sworn statement, signed by the general-purpose committee's campaign treasurer, and properly notarized: "I, the undersigned campaign treasurer, do not expect the occurrence of any further reportable activity by this general-purpose committee for this or any other campaign or election for which reporting under the Election Code is required. I declare that all of the information required to be reported by me has been reported. I understand that designating a report as a dissolution report terminates the appointment of campaign treasurer. I further understand the circumstances in which the general- purpose committee may not make or authorize political expenditures or accept political contributions without having an appointment of campaign treasurer on file." This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333512 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter G. Rules Applicable to a Principal Political Committee of a Political Party 1 TAC sec.20.501, sec.20.503 The Texas Ethics Commission adopts new sec.20.501 and sec.20.503, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7046). The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate, adopt, and repeal rules concerning the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333511 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter H. Rules Applicable to a Political Party Accepting Contributions from Corporations or Labor Organizations 1 TAC sec.sec.20.521, 20.523, 20.525, 20.527, 20.529, 20.531 The Texas Ethics Commission adopts new sec.sec. 20.521, 20.523, 20.525, 20. 527, 20.529, and 20.531, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. Section 20.521 and sec.20.531 are adopted without changes; sec.sec.20. 523, 20.525, 20.527, and 20.529 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7046). The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.523. Separate Account Required. (a) Contributions authorized by sec.24.19 of this title (relating to Contribution to a Political Party) must be maintained in an account separate from other contributions accepted by a political party. (b) Interest and other income earned from contributions authorized by sec.24.19 of this title (relating to Contribution to a Political Party) must be maintained in the account required by subsection (a) of this section. (c) Proceeds from the sale or rent of assets purchased either with contributions authorized by sec.24.19 of this title (relating to Contribution to a Political Party) or with interest or other income earned from such contributions must be maintained in the account required by subsection (a) of this section. sec.20.525. Record of Contributions and Expenditures and Contents of Report. (a) The party chair of a political party is required to maintain a record of all contributions from corporations and labor organizations and all expenditures from such contributions. (b) The party chair of a political party shall preserve the record required by subsection (a) of this section for at least two years after the filing deadline for the report containing the information on the record. (c) The party chair of a political party that accepts contributions authorized by sec.24.19 of this title (relating to Contribution to a Political Party) shall report all contributions and expenditures made to and from the account required by sec.20.523 of this title (relating to Separate Account Required), in accordance with the reporting schedule in sec.20.529 of this title (relating to Reporting Schedule for Political Party Accepting Corporate or Labor Organization Contributions). (d) The reports required by subsection (c) of this section shall contain the following information for the period covered by the report: (1) the full name of the political party; (2) the complete mailing address of the political party; (3) the full name of the political party's chair; (4) the residence or business street address of the political party's chair; (5) if the mailing address of the political party's chair is different from the street address provided, the mailing address for the political party's chair; (6) the political party chair's telephone number; (7) the identity and date of the election for which the report is filed, if applicable; (8) for each corporation or labor organization from whom the political party accepted a contribution (other than a pledge, loan, or guarantee of a loan): (A) the full name of the corporation or labor organization making the contribution; (B) the address of the corporation or labor organization making the contribution; (C) the amount of the contribution; and (D) the date the contribution was accepted; (E) a description of any in-kind contribution; (9) for each corporation or labor organization from whom the political party accepted a pledge: (A) the full name of the corporation or labor organization making the pledge; (B) the address of the corporation or labor organization making the pledge; (C) the amount of the pledge; (D) the date the pledge was accepted; and (E) a description of any goods or services pledged; (10) for each corporation or labor organization making a loan or loans to the political party: (A) the full name of the person or financial institution making the loan; (B) the address of the person or financial institution making the loan; (C) the amount of the loan; (D) the date of the loan; (E) the interest rate; (F) the maturity date; (G) the collateral for the loan, if any; (H) if the loan has guarantors: (i) the full name of each guarantor; (ii) the address of each guarantor; (iii) the principal occupation of each guarantor; (iv) the name of the employer of each guarantor; and (v) the amount guaranteed by each guarantor; (11) for each expenditure made by the political party from the account required by sec.20.523 of this title (relating to Separate Account Required): (A) the date of the expenditure; (B) the full name of the person to whom each expenditure was made; (C) the address of the person to whom each expenditure was made; (D) the purpose of the expenditure, for example, the nature of the goods or services for which the expenditure was made; and (E) the amount of the expenditure; (12) for each expenditure by the political party that was made as a political contribution to a candidate, officeholder, or another political committee and that was returned to the political party during the reporting period: (A) the amount returned; (B) the full name of the person to whom the expenditure was originally made; (C) the address of the person to whom the expenditure was originally made; and (D) the date the expenditure was returned to the general-purpose committee; (13) the following total amounts: (A) total amount of all contributions (other than pledges, loans, or guarantees of loans) accepted during the period from corporations or labor organizations; (B) the total amount of all expenditures made during the period from the account required by sec.20.523 of this title (relating to Separate Account Required); (14) if applicable, a statement that no reportable activity occurred during the reporting period; and (15) an affidavit, executed by the political party's chair, stating: "I swear, or affirm, that the accompanying report is true and correct and includes all information required to be reported by me under Title 15, Election Code." sec.20.527. Form of Report. (a) The report required by this subchapter is separate from any other report a political party is required to file under this title. (b) The report is filed by the chair of the state party or county executive committee, as applicable, and not by the treasurer of a general-purpose committee. Contributions and expenditures required to be reported under this subchapter should not be included on a report filed in accordance with Subchapter F of this chapter (relating to Reporting Requirements for a General- Purpose Committee). sec.20.529. Reporting Schedule for Political Party Accepting Corporate or Labor Organization Contributions. A political party that has accepted a contribution from a corporation or labor organization shall file the following reports until the political party is no longer accepting corporate or labor organization contributions and the acceptance and expenditure of all such funds has been reported: (1) A report shall be filed not earlier than July 1 and not later than July 15, covering the period that begins on either January 1 or the day after the last day included in a primary election report filed under paragraph (3) of this section, as applicable, and ends on June 30. (2) A report shall be filed not earlier than January 1 and not later than January 15, covering the period that begins on either July 1 or the day after the last day included in a general-election report filed under paragraph (4) of this section, as applicable, and ends on December 31; (3) A report shall be filed for each primary election held by the political party. The report shall be filed not later than the eighth day before the primary election, covering the period that begins on January 1 and ends on the tenth day before the primary election; (4) A report shall be filed for the general election for state and county officers. The report shall be filed not later than the 50th day before the general election, covering the period that begins on July 1 and ends on the 61st day before the general election for state and county officers. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333510 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter I. Rules Applicable to a Political Party's County Executive Committee 1 TAC sec.sec.20.551, 20.553, 20.555, 20.557, 20.559, 20.561 The Texas Ethics Commission adopts new sec.sec.20.551, 20.553, 20.555, 20. 557, 20.559, and 20.561, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. Section 20.551 and sec.20.559 are adopted without changes; sec.sec.20. 553, 20.555, 20.557, and 20.561 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7048). The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.555. County Executive Committee Accepting Contributions or Making Expenditures That Exceed $5,000. (a) A county executive committee described by subsection (b) of this section is subject to the requirements of Subchapter F of this chapter (relating to Reporting Requirements for a General-Purpose Committee), except where those rules conflict with this subchapter. In the case of conflict, this subchapter prevails over Subchapter F of this chapter (relating to Reporting Requirements for a General-Purpose Committee). (b) A county executive committee that accepts political contributions or that makes political expenditures that, in the aggregate, exceed $5,000 in a calendar year shall file: (1) a campaign treasurer appointment with the commission no later than the 15th day after the date that amount is exceeded; and (2) the reports required by Subchapter F of this chapter (relating to Reporting Requirements for a General-Purpose Committee). The first report filed must include all political contributions accepted and all political expenditures made before the county executive committee filed its campaign treasurer appointment. (c) Contributions accepted from corporations and labor organizations under sec.24.19 of this title (relating to Contributions to a Political Party) and reported under Subchapter H of this chapter (relating to Accepting and Reporting Contributions from Corporations and Labor Organizations) do not count against the $5,000 thresholds described in subsection (b) of this section. (d) A county executive committee that filed a campaign treasurer appointment and reports of contributions and expenditures may file the report due by January 15 as its final report. Filing such a report will notify the filing authority that the county executive committee does not intend to file reports in the next calendar year unless it exceeds one of the $5,000 thresholds. sec.20.557. Exceptions from Certain Restrictions. A county executive committee is excepted from complying with sec.20.401(a)-(c) of this title (relating to Thresholds for by a General-Purpose Committee). sec.20.561. County Executive Committee Accepting Contributions From Corporations and or Labor Organizations. (a) A county executive committee that accepts contributions from corporations or labor organizations authorized by sec. 24.19 of this title (relating to Contribution to a Political Party) is subject to the provisions set out in Subchapter H of this chapter (relating to Rules Applicable to a Political Party Accepting Contributions from Corporations or Labor Organizations). (b) The chair of a county executive committee that accepts contributions from a corporation or labor organization must file the report required by sec. 20.525 of this title (relating to Record of Contributions and Expenditures). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333509 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter J. Reports by a Candidate for State Party Chair 1 TAC sec.sec.20.571, 20.573, 20.575, 20.577 The Texas Ethics Commission adopts new sec.sec.20.571, 20.573, 20.575, and 20. 577, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. Sections 20.571, 20.573, and 20.575 are adopted without changes; sec.20.577 is adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7049). The changes are non-substantive and are grammatical or stylistic in nature. The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections will set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.577. Reporting Schedule for a Candidate for State Chair. (a) A candidate for state chair of a political party is required to file only the reports listed in this section and is not required to file any other reports required by candidates for public office under Subchapter C of this chapter (relating to Reporting Requirements for a Candidate). (b) A candidate for state chair of a political party is required to file semiannual reports as provided by this subsection. (1) One semiannual report is due no earlier than July 1 and no later than July 15. (A) The period covered by a report under this paragraph begins on the later of the following dates, as applicable: (i) January 1; (ii) the first day after the period covered by the last report required by this subchapter; or (iii) the day the state chair's campaign treasurer this is the first report filed under this subchapter. (B) The period covered by the report under this paragraph ends on June 30. (2) One semiannual report is due no earlier than January 1 and no later than January 15. (A) The period covered by a report under this paragraph begins on the later of the following dates, as applicable: (i) July 1; (ii) the first day after the period covered by the last report required by this subchapter; or (iii) the day the state chair's campaign treasurer this is the first report filed under this subchapter. (c) A candidate for state chair of a political party shall also file the following reports: (1) A candidate for state chair of a political party shall file a report not earlier than the 39th day before the convening of the state convention and not later than the 30th day before the convening of the state convention. The report shall cover the period that begins on either the day the candidate filed a campaign treasurer appointment with the commission or the first day after the period covered by the last report required to be filed, as applicable, and ends on the 40th day before the convening; and (2) A candidate for state chair of a political party shall file a report not earlier than the ninth day before the convening of the state convention and not later than the eighth day before the convening of the state convention. The report must cover the period that begins on either the day after the committee filed a campaign treasurer appointment with the commission or the first day after the period covered by the last report required to be filed, as applicable, and ends on the tenth day before the convening. (d) A candidate for state chair of a political party who expects no further reportable activity in connection with his or her candidacy may file a final report at any time in accordance with sec.20.229 of this title (relating to Final Report) and sec.20.231 of this title (relating to Contents of Final Report). (e) A former candidate for state chair of a political party who retains unexpended political contributions, unexpended interest or other income from political contributions, or assets purchased with political contributions at the time of filing a final report is subject to the requirements of sec.sec.20.233- 20.243 of this title (relating to Reporting Requirements for a Candidate). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333508 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter K. Reports by Political Committees Supporting or Opposing a Candidate for State Chair of a Political Party 1 TAC sec.sec.20.591, 20.593, 20.595 The Texas Ethics Commission adopts new sec.sec.20.591, 20.593, and 20.595, concerning the reporting of political contributions and expenditures by certain candidates, officeholders, and political committees. Section 20.591 and sec.20.593 are adopted without changes; sec.20.595 is adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7050). The new sections set forth the general rules concerning certain reports filed with the commission; reporting requirements of a candidate, an officeholder without a campaign treasurer appointment on file, a specific-purpose political committee, and a general-purpose political committee; rules applicable to a principal political committee of a political party; general rules concerning political parties accepting contributions from corporations and labor organizations; rules concerning a political party's county executive committee; reports by a candidate for state party chair; and reports by political committees supporting or opposing a candidate for state chair of a political party. The new sections will set forth basic guidelines and requirements for the reporting, filing, and orderly processing and administration of reports filed with the Texas Ethics Commission and other filing authorities under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.20.595. Reporting Schedule for a Political Committee Supporting or Opposing Candidate for State Chair of a Political Party. (a) A political committee supporting or opposing a candidate for state chair of a political party is required to file semiannual reports in accordance with this section: (1) One semiannual report is due no earlier than July 1 and no later than July 15. (A) The period covered by a report under this paragraph begins on the later of the following dates, as applicable: (i) January 1; (ii) the first day after the period covered by the last report required by this subchapter; or (iii) the day the political committee's campaign if this is the first report filed under this subchapter. (B) The period covered by the report under this subparagraph ends on June 30. (2) One semiannual report is due no earlier than January 1 and no later than January 15. (A) The period covered by a report under this paragraph begins on the later of the following dates, as applicable: (i) July 1; (ii) the first day after the period covered by the last report required by this subchapter; or (iii) The day the political committee's campaign if this is the first report filed under this subchapter. (B) The period covered by the report under this subparagraph ends on December 31. (b) A political committee supporting or opposing a candidate for state chair of a political party shall also file the following reports: (1) A political committee supporting or opposing a candidate for state chair of a political party shall file a report not earlier than the 39th day before the convening of the state convention and not later than the 30th day before the convening of the state convention. The report shall cover the period that begins on either the day the political committee filed a campaign treasurer appointment with the commission or the first day after the period covered by the last report required to be filed, as applicable, and ends on the 40th day before the convening; and (2) A political committee supporting or opposing a candidate for state chair of a political party shall file a report not earlier than the ninth day before the convening of the state convention and not later than the eighth day before the convening of the state convention. The report covers the period that begins on either the date the political committee filed a campaign treasurer appointment with the commission or the first day after the period covered by the last report required to be filed, as applicable, and ends on the tenth day before the convening. (c) A political committee supporting or opposing a candidate for state chair of a political party may file a dissolution report in accordance with sec.20.341 of this title (relating to Dissolution Report) and sec.20.343 of the chapter (relating to Contents of Dissolution Report) at any time that the committee expects no further reportable activity to occur). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333507 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 22. Restrictions on Contributions and Expenditures 1 TAC sec.sec.22.1, 22.3, 22.5, 22.7, 22.9, 22.11, 22.13, 22.15, 22.17, 22.19, 22.21, 22.23, 22.25, 22.27, 22.29, 22.31 The Texas Ethics Commission adopts new sec.sec.22.1, 22.3, 22.5, 22.7, 22.9, 22.11, 22.13, 22.15, 22.17, 22.19, 22.21, 22.23, 22.25, 22.27, 22.29, and 22. 31, concerning general restrictions on political contributions and expenditures. Sections 22.1, 22.3, 22.7, 22.9, 22.11, 22.13, 22.15, 22.17, 22. 21, 22.23, 22.25, 22.27, 22.29, and 22.31, are adopted without changes; and sec.sec.22.5, 22.7, and 22.19 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7051). The changes are minor and non-substantive, and are designed to clarify and correct text. The new sections set forth certain restrictions on contributions and expenditures: they set forth the requirements of appointing the campaign treasurer prior to political activity; provide guidelines on disclosure of true sources of contributions and expenditures direct campaign contributions, contributions from out-of-state committees, and cash contributions; prohibit certain contributions during the regular session of the legislature, contributions in the capitol, payments to purchase real property, the personal use of contributions, and the acceptance of contributions from foreign nationals; and set forth restrictions on reimbursement of personal funds, and payments on certain loans. Additionally, the new sections provide time limits on retaining unexpended contributions, and provide guidelines on activity after the death or incapacity of a candidate or officeholder. The new sections will set forth basic guidelines and requirements, including prohibitions and restrictions, for candidates and officeholders seeking political contributions and making political expenditures. They are designed to inform the general public, out-of-state political committees, and any other interested party about the restrictions and prohibitions in the use of contributions and expenditures under the Texas Election Code, Title 15. No public comments were received adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.22.5. Direct Campaign Expenditures. (a) Only the following persons, complying with applicable restrictions and procedures, may make or authorize a direct campaign expenditure: (1) an individual making an expenditure authorized by subsection (b) or (d) of this section; (2) a corporation or labor organization making an expenditure authorized by subsection (e) of this section; (3) a candidate making or authorizing an expenditure for the candidate's own election; (4) a political committee; or (5) a campaign treasurer or assistant campaign treasurer acting in an official capacity. (b) An individual not acting in concert with another person may make one or more direct campaign expenditures in an election from his or her own property if: (1) the total expenditures on any one or more candidates or measures do not exceed $100 and the individual receives no reimbursement for the expenditures; or (2) if the total expenditures on any one or more candidates or measures exceed $100, the individual complies with Chapter 20, Subchapter E, of this title (relating to Reporting Requirements for a Specific-Purpose Committee) as if the individual were a campaign treasurer of a political committee and the individual receives no reimbursement for the expenditures. (c) An individual making expenditures under subsection (b)(2) of this section is not required to file a campaign treasurer appointment, but is required to use the reporting forms and schedule prescribed by Chapter 20, Subchapter E, of this title (relating to Reporting Requirements for a Specific-Purpose Committee). (d) An individual making a direct campaign expenditure consisting of the individual's personal travel expenses is not required to comply with subsection (b)(2) of this section, provided that the individual receives no reimbursement for the expenditures. (e) A corporation or labor organization not acting in concert with another person may make one or more direct campaign expenditures from its own property in connection with an election on a measure if the corporation makes the expenditures in accordance with subsections (b) and (c) of this section as if the corporation or labor organization were an individual. sec.22.7. Contribution from Out-of-State Committee. (a) For each reporting period during which a candidate, officeholder, or political committee accepts a contribution or contributions from an out-of-state political committee totaling more than $500, the candidate, officeholder, or political committee must comply with subsections (b) and (c) of this section. (b) The candidate, officeholder, or political committee covered by subsection (a) of this section must first obtain from the out-of-state committee one of the following documents before accepting the contribution that causes the total received from the out-of-state committee to exceed $500 during the reporting period: (1) a written statement, certified by an officer of the out-of-state-political committee, listing the full name and address of each person who contributed more than $100 to the out-of-state political committee during the 12 months immediately preceding the contribution; or (2) a copy of the out-of-state political committee's statement of organization filed as required by law with the Federal Election Commission and certified by the Federal Election Commission. (c) The document obtained pursuant to subsection (b) of this section shall be included as part of the report that covers the reporting period in which the candidate, officeholder, or political committee accepted the contribution that caused the total accepted from the out-of-state committee to exceed $500. (d) A candidate, officeholder, or political committee that: (1) receives contributions covered by subsection (a) of this section from the same out-of-state committee in successive reporting periods, and (2) complies with subsection (b)(2) of this section before accepting the first contribution triggering subsection (a) of this section, may comply with subsection (c) of this section in successive reporting periods by submitting a copy of the certified document obtained before accepting the first contribution triggering subsection (a) of this section, rather than by obtaining and submitting an original certified document for each reporting period, provided the document has not been amended since the last submission. (e) A candidate, officeholder, or political committee that accepts a contribution or contributions totaling $500 or less from an out-of-state political committee shall include as part of the report covering the reporting period in which the contribution or contributions are accepted either: (1) a copy of the out-of-state committee's statement of organization filed as required by law with the Federal Election Commission and certified by the Federal Election Commission; or (2) the following information: (A) the full name of the committee, and, if the name is an acronym, the words the acronym represents; (B) the address of the committee; (C) the telephone number of the committee; (D) the name of the person appointing the campaign treasurer; and (E) the following information for the individual appointed campaign treasurer and assistant campaign treasurer: (i) the individual's full name; (ii) the individual's residence or business street address; and (iii) the individual's telephone number. (f) This section does not apply to a contribution from an out-of-state political committee if the committee filed a campaign treasurer appointment with the commission before making the contribution. sec.22.19. General Restrictions on Reimbursement of Personal Funds. (a) If a candidate makes political expenditures from the candidate's personal funds, he or she may reimburse those personal funds from political contributions only if the expenditure is reported and the candidate states his or her intent to reimburse personal funds pursuant to sec.20.219(16) of this title (relating to Content of Candidate's Sworn report of Contributions and Expenditures). (b) If an officeholder who does not have a campaign treasurer appointment on file makes political expenditures from the officeholder's personal funds, he or she may reimburse those personal funds from political contributions only if the expenditure is reported and the officeholder states his or her intent to reimburse personal funds pursuant to sec.20.279(12) of this title (relating to Contents of Officeholder's Sworn Report of Contributions and Expenditures). (c) A candidate or officeholder may reimburse personal funds from political contributions for the use of personal assets for political purposes provided that the reimbursement is reported as a political expenditure. Reimbursement of personal funds from political contributions for the use of a personal vehicle for political purposes must be at the rate set in accordance with the IRS standard mileage rate for business use of a vehicle. (d) A candidate or officeholder who makes political expenditures from his or her personal funds may reimburse those personal funds from political contributions only if: (1) the expenditures were fully reported as political expenditures on the report covering the period during which the expenditures were made; and (2) the report disclosing the expenditures indicates that the expenditures were made from the candidate's or officeholder's personal funds and are subject to reimbursement. (e) A candidate's or officeholder's failure to comply with subsection (d) of this section may not be cured by filing a corrected report after the report deadline has passed. (f) A candidate or officeholder who has complied with subsection (d) of this section and whose personal funds have been reimbursed from political contributions must report the amount of the reimbursement as a political expenditure in the report covering the period during which the reimbursement was made. (g) Section 22.21 of this title (relating to Additional Restrictions on Reimbursement of Personal Funds and Payments on Certain Loans) sets limits on the amount of political expenditures from personal funds that a statewide officeholder may reimburse from political contributions. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333506 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 24. Restrictions on Contributions and Expenditures Applicable to Corporations and Labor Organizations 1 TAC sec.sec.24.1, 24.3, 24.5, 24.7, 24.9, 24.11, 24.13, 24.15, 24.17, 24.19 The Texas Ethics Commission adopts new sec.sec.24.1, 24.3, 24.5, 24.7, 24.9, 24.11, 24.13, 24.15, 24.17, and 24.19, concerning general restrictions on political contributions and expenditures made by corporations and labor organizations. Sections 24.5, 24.7, 24.9, 24.11, 24.13, and 24.17 are adopted without changes; and sec.sec.24.1, 24.3, 24.15, and 24.17 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7055). The changes are non-substantive. The new sections set forth certain restrictions on contributions and expenditures applicable to corporations, labor organizations, and certain associations: they prohibit certain corporate loans, contributions, and expenditures; authorize certain contributions on measures and communications to certain persons; and allow expenditures to a general-purpose committee, get-out- the-vote campaign, and to political committees. The new sections will set forth basic guidelines and requirements, including prohibitions and restrictions, to be followed by corporations, labor organizations, and other associations when making political contributions or expenditures under the Texas Election Code, Title 15. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.24.1. Corporations and Certain Associations Covered. (a) This chapter applies to: (1) labor organizations; (2) corporations that are organized under the Texas Business Corporation Act, the Texas Non-Profit Corporation Act, federal law, or the laws of another state or nation; and (3) the following associations, whether incorporated or not, which for purposes of this chapter are considered to be corporations covered by this chapter: (A) banks; (B) trust companies; (C) savings and loan associations or companies; (D) insurance companies; (E) reciprocal or interinsurance exchanges; (F) railroad companies; (G) cemetery companies; (H) government-regulated cooperatives; (I) stock companies; and (J) abstract and title insurance companies. (b) For purposes of this chapter, members of a corporation that does not have stockholders and members of an association listed in subsection (a)(3) of this section are considered to be stockholders. (c) This chapter does not apply to a political committee that incorporates for liability purposes only in accordance with subsection (d) of this section, provided that the sole principal purpose of the committee is accepting political contributions and making political expenditures. (d) A political committee may incorporate to limit its liability by providing in its official incorporation documents that it is a political committee that is incorporating for liability purposes only, and that its only principal purpose is to accept political contributions and make political expenditures. sec.24.3. Prohibitions on Contributions and Expenditures. (a) A corporation or labor organization may not make a political contribution or political expenditure that is not authorized by this chapter. (b) A corporation or labor organization may not make a political contribution or political expenditure in connection with a recall election or in connection with the circulation or submission of a petition to call a recall election. sec.24.15. Payments to a Corporation of the Candidate or Officeholder. (a) If a corporation charges a candidate, officeholder, or specific-purpose committee for supporting or assisting a candidate or officeholder less than fair market value for goods or services in order to comply with sec.32.23(b) of this title (relating to Restrictions on Payments to Certain Businesses), the discount is not a prohibited corporate contribution. (b) If the discount is greater than is necessary to comply with sec.32. 23 of this title (relating to Restrictions on Payments to Certain Businesses), the discount is a prohibited corporate contribution if the discount is not otherwise authorized by this chapter. sec.24.17. Corporate Expenditures for Get-Out-The-Vote Campaigns Permitted. (a) An expenditure to finance a voter registration or get-out-the-vote drive is not a political expenditure if the drive encourages voting in general but does not encourage voting for or against a measure, candidate, officeholder, or political party. (b) A corporation or labor organization is permitted to make an expenditure described in subsection (a) of this section. (c) A corporate or labor organization expenditure described by subsection (a) of this section is not reportable. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333505 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 26. Political and Legislative Advertising 1 TAC sec.sec.26.1, 26.3, 26.5, 26.7, 26.9, 26.11, 26.13, 26.15, 26.17 The Texas Ethics Commission adopts new sec.sec.26.1, 26.3, 26.5, 26.7, 26.9, 26.11, 26.13, 26.15, and 26.17, concerning restrictions and requirements on political and legislative advertising. Sections 26.1, 26.3, 26.7, 26.9, 26.11, 26.15, and 26.17 are adopted without changes; sec.26.5 and sec.26.13 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7056). The changes are non-substantive. In sec.26.13(c), the term "Great Seal of Texas" was replaced by the term "state seal" pursuant to a comment received by the commission. The new sections set forth certain guidelines, requirements, and restrictions on political advertising: political advertising is defined; requirements and exceptions for political disclosure are set forth; notice requirements for political advertising designed to be seen from a road are set out; maximum rates for political advertising are set forth; and prohibitions against the misuse of an office title, including the use of the state seal, are set out. The new sections will set forth basic guidelines and requirements, including prohibitions and restrictions, to be followed by all persons when involved in political advertising under the Texas Election Code, Title 15. Public comments were received on sec.26.13(c). It was suggested that the term "state seal" be substituted in place of "Great Seal of Texas." The commission agreed with the comment and sec.26.13(c) is adopted with that change. No other comments were received. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.26.5. Disclosure Not Required for Certain Campaign Materials. The requirements of sec.26.3 of this chapter (relating to Required Disclosure on Political Advertising) do not apply to the following: (1) a ticket or invitation to a political fund-raising event; (2) political advertising printed on letterhead stationery, if the letterhead contains the information required by sec.26.3(a)(2) and (3) of this title (relating to Required Disclosure on Political Advertising); or (3) political advertising on campaign buttons, pins, or hats, or on objects whose size makes printing the disclosure impracticable. sec.26.13. Misleading Use of Office Title. (a) A person may not knowingly enter into a contract or other agreement to print, publish, or broadcast political advertising with the intent to represent to an ordinary and prudent person that a candidate holds a public office he or she does not hold at the time the agreement is made. (b) A person may not knowingly represent in a campaign communication that a candidate holds a public office he or she does not hold at the time the representation is made. (c) A person other than an officeholder may not knowingly use a representation of the state seal in political advertising. "State seal" means the state seal, the reverse of the state seal, and the state arms as defined by Texas Civil Statutes, Article 6139f. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333534 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 28. Reports by a Candidate for Speaker of the House of Representatives 1 TAC sec.sec.28.1, 28.3, 28.5, 28.7, 28.9 The Texas Ethics Commission adopts the new sec.sec.28.1, 28.3, 28.5, 28.7, and 28.9, concerning the reporting and filing of reports by candidates for speaker of the house of representatives. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7058). The new sections set forth definitions, guidelines, requirements, and restrictions on contributions and expenditures applicable to reports filed by candidates for speaker of the house of representatives. The new sections will provide guidelines, including prohibitions and restrictions, to be followed by candidates in the preparation and filing of reports for speaker of the house of representatives under the Government Code, Chapter 302. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333533 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 30. Lobbyist Registration Subchapter A. General Provisions 1 TAC sec.sec.30.1, 30.3, 30.5 The Texas Ethics Commission adopts new sec.sec.30.1, 30.3, and 30.5, concerning the registration and reporting requirements of lobbyists. The new sections set forth the procedures and requirements for registration by those certain persons required to register as lobbyists. Section 30.1 and sec.30.5 are adopted without changes; sec.30.3 is adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7058). The changes are non-substantive: in sec.30.3(1) and (2), the word "chapter" has been substituted for the word "title". The new sections set forth the procedures and requirements for registration by those certain persons required to register as lobbyists. They set forth definitions; compensation and expenditure thresholds; registration procedures and requirements; and exclusions and exceptions to lobby registration. The new sections set forth basic guidelines and criteria to be followed by any person who should register as a lobbyist under the Texas Government Code, Chapter 305. Comments were received on sec.30.1, concerning how the rule might relate to the legality of a sales commission paid to an employee or contractor who communicates with a state agency in order to influence the agency's selection of a service provider. The person commenting on the proposed rule suggested that the rules should be clarified to provide that purchasing decisions are not administrative actions for purposes of the contingent fee prohibition set forth in the Government Code, sec.305.022 (relating to Contingent Fees). The commission notes that the relationship of the laws that regulate lobby activities and laws that regulate the purchasing decisions of state agencies has been a matter of continuing concern to the commission, as evidenced by advisory opinions and previous rule-making that specifically addressed aspects of this issue. The proposed rule carries forward, without significant change, a revised rule previously adopted by commission after it had focused on issues concerning lobbying on purchasing decisions. The commission agreed further rule-making, advisory opinions, or both, may be necessary and appropriate to address concerns about contingent fees paid for purchasing decisions, but was not prepared to make the suggested changes to language in the proposed rules without further study and consideration of the full effect of those changes. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.30.3. Registration Required. A person must register and otherwise comply with the requirements of this chapter if the person lobbies and either: (1) is compensated or reimbursed by another person, including a full-time employer, to lobby, as set forth in Subchapter B of this chapter (relating to Compensated Lobbying); or (2) makes certain specified expenditures to lobby, as set forth in Subchapter C of this chapter (relating to Expenditures Made to Lobby). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333532 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 30. Personal Financial Disclosure Subchapter A. Disclosure Statements Expenditures Previously Reported 1 TAC sec.30.3 The Texas Ethics Commission adopts the repeal of sec.30.3, concerning expenditures previously reported under other statutory provisions. The repeal is adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7059). The repealed section is being replaced by a more comprehensive recodification of commission rules resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No public comments were received regarding adoption of the repeal. The repeal is adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333547 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter B. Compensated Lobbying 1 TAC sec.sec.30.11, 30.13, 30.15, 30.17, 30.19 The Texas Ethics Commission adopts new sec.sec.30.11, 30.13, 30.15, 30.17, and 30.19, concerning the registration and reporting requirements of lobbyists. The new sections set forth the procedures and requirements for registration by those certain persons required to register as lobbyists. Sections 30.11, 30. 13, 30.15, and 30.19 are adopted without changes; sec.30.17 is adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7060). The changes are non-substantive: the phrase "compensates, or retains" is added to subsection (a), and the word "each" is substituted for the word "a" in sec.30.17(c)(1). The new sections set forth the procedures and requirements for registration by those certain persons required to register as lobbyists. They set forth definitions; compensation and expenditure thresholds; registration procedures and requirements; and exclusions and exceptions to lobby registration. The new sections set forth basic guidelines and criteria to be followed by any person who should register as a lobbyist under the Texas Government Code, Chapter 305. Comments were received on sec.30.19. The first comment concerned how the rule might relate to the legality of a sales commission paid to an employee or contractor who communicates with a state agency in order to influence the agency's selection of a service provider. The person commenting on the proposed rule suggested that the rules should be clarified to provide that purchasing decisions are not administrative actions for purposes of the contingent fee prohibition set forth in the Government Code, sec.305.022. The second comment suggested that the exclusion in sec.30.19(a)(1) be amended to include any request, written or oral, for an interpretation of an agency rule or policy. The Consulting Engineers Council of Texas commented against sec.30.19(a)(1). With respect to the first comment, the commission notes that the relationship of the laws that regulate lobby activities and laws that regulate the purchasing decisions of state agencies has been a matter of continuing concern to the commission, as evidenced by advisory opinions and previous rule-making that specifically addressed aspects of this issue. The proposed rule carries forward, without significant change, a revised rule previously adopted by commission after it had focused on issues concerning lobbying on purchasing decisions. The commission agreed further rule-making, advisory opinions, or both, may be necessary and appropriate to address concerns about contingent fees paid for purchasing decisions, but was not prepared to make the suggested changes to language in the proposed rules without further study and consideration of the full effect of those changes. With respect to the second comment, the commission believes that it is the better public policy to limit this exclusion from the lobbying registration requirements to those instances where a person seeks a written opinion from the state agency. By so limiting the exclusion, the rules ensure that there is at least some document to evidence the communication between the person making the request and the agency responding to the request. Also, the commission believes the concerns voiced in the comment may be adequately addressed by one or more of the other exclusions from lobby registration requirements adopted in sec.30.19 (relating to Exclusions from the Compensation Threshold). The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.30.17. Registration by a Compensated Lobbying Entity. (a) For purposes of this section, a "lobbying entity" is a corporation, association, firm, partnership, committee, club, organization, or group of persons voluntarily acting in concert that is compensated or reimbursed to lobby and that employs, retains, compensates, or reimburses one or more persons to lobby. (b) It is the intent of the commission that the public have full disclosure of the items required to be reported under this chapter and Chapter 32 of this title (relating to Activity Reporting by a Registrant). (c) There are two options for reporting: (1) The lobbying entity elects to register, and reports the total compensation or reimbursement paid by each client for lobbying. With respect to compensation, each individual registrant employed, retained, compensated, or reimbursed by the lobbying entity is then required to report only the compensation or reimbursement paid to the individual registrant. (2) If the lobbying entity declines to register, each individual registrant who is employed, retained, compensated, or reimbursed by the lobbying entity, and with the full cooperation of the lobbying entity, reports either: (A) the total compensation or reimbursement paid by a client to the lobbying entity for lobbying by all registrants; or (B) the compensation or reimbursement paid by a client to the lobbying entity for lobbying by the individual registrant. (d) If the total amount of compensation and reimbursement to lobby received by the lobbying entity is not reported under subsection (c)(2) of this section, the lobbying entity shall register under sec.30.3 of this title (relating to Registration Required). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333531 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Expenditures to Lobby 1 TAC sec.sec.30.31, 30.33, 30.35, 30.37, 30.39, 30.41 The Texas Ethics Commission adopts new sec.sec.30.31, 30.33, 30.35, 30.37, 30.39, and 30.41, concerning the registration and reporting requirements of lobbyists. The new sections set forth the procedures and requirements for registration by those certain persons required to register as lobbyists. Sections 30.31, 30.35, 30.39, and 30.41 are adopted without changes; sec.30.33 and sec.30.37 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register, (18 TexReg 7061). New subsection (c) has been added to sec.30.33, and minor changes, not substantive in nature were made to sec.30.37. The new sections set forth the procedures and requirements for registration by those certain persons required to register as lobbyists. They set forth definitions; compensation and expenditure thresholds; registration procedures and requirements; and exclusions and exceptions to lobby registration. The new sections set forth basic guidelines and criteria to be followed by any person who should register as a lobbyist under the Texas Government Code, Chapter 305. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.30.33. Lobby Expenditure. (a) An expenditure is a lobby expenditure if the expenditure is made to lobby, and is for one or more of the following purposes: (1) food, beverages, or both; (2) transportation, lodging, or both; (3) entertainment; (4) a gift, other than an award or memento; (5) an award or memento; or (6) an expenditure made for the attendance of a member at a political fundraiser or charity event. (b) An expenditure for a person's own transportation, food and beverages, or lodging shall not be included in calculating the registration threshold under sec.30.31 of this title (relating to Expenditure Threshold). (c) An expenditure of less than $200 that is reimbursed by the member for whom the expenditure is made is not a lobby expenditure. For this provision to apply, however, the person who makes the expenditure must be fully reimbursed by the member before the date that such expenditure must otherwise be reported under Chapter 32 of this title (relating to Activity Reporting by a Lobbyist). sec.30.37. Lobbying Entity that Makes Lobby Expenditures. (a) For purposes of this section, a "lobbying entity" is a corporation, association, firm, partnership, committee, club, organization, or group of persons voluntarily acting in concert that makes lobby expenditures. (b) It is the intent of the commission that the public have full disclosure of the items required to be reported under this chapter and Chapter 32 of this title (relating to Activity Reporting by a Registrant). (c) If a lobbying entity makes lobby expenditures that exceed the expenditure threshold, the expenditures must be reported by at least one of the persons eligible to report the lobby expenditure under this section. (d) There are two options for reporting: (1) The lobbying entity elects to register, and reports the lobby expenditures made by the entity. Each individual registrant, if any, employed by the lobbying entity is required to report only the lobby expenditures made by the individual. (2) If the lobbying entity declines to register, a person who is registered under this chapter, as an agent of the lobbying entity and in cooperation with the lobbying entity, reports either: (A) the total lobby expenditures made by the lobbying entity; or (B) the lobby expenditures made by the lobbying entity that were effected by the individual registrant. (e) For an individual to report a lobby expenditure on behalf of a lobbying entity under subsection (d)(2)(A) of this section, that individual must be present for the lobby expenditure. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333530 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter D. Registration Procedures and Requirements 1 TAC sec.sec.30.51, 30.53, 30.55, 30.57, 30.59, 30.61, 30.63, 30. 65, 30.67 The Texas Ethics Commission adopts new sec.sec.30.51, 30.53, 30.55, 30.57, 30.59, 30.61, 30.63, 30.65, and 30.67, concerning the registration and reporting requirements of lobbyists. The new sections set forth the procedures and requirements for registration by those certain persons required to register as lobbyists. Sections 30.51, 30.53, 30.57, 30.63, 30.65, and 30.67 are adopted without changes; and sec.30.55, 30.59, and 30.61 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7062). The changes are minor, not substantive in nature, and were made in order to clarify or correct text. The new sections set forth the procedures and requirements for registration by those certain persons required to register as lobbyists. They set forth definitions; compensation and expenditure thresholds; registration procedures and requirements; and exclusions and exceptions to lobby registration. The new sections set forth basic guidelines and criteria to be followed by any person who should register as a lobbyist under the Texas Government Code, Chapter 305. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.30.55. Contents of Registration Form. (a) A person registering under sec.30.51 of this title (relating to Registration Form) shall provide the following information on the registration form: (1) the registrant's full name; (2) the registrant's occupation; (3) the registrant's business address; (4) the registrant's mailing address, if different than the business address; and (5) the registrant's business telephone number. (b) The registrant shall report the following information with respect to each employer of the registrant: (1) the employer's full name; (2) the employer's address; (3) the subject matter on which the registrant lobbies for the employer, unless the registrant certifies that all the subject matters on which the registrant lobbies are listed under subsection (c) of this section; and (4) the compensation and reimbursement to lobby paid to the registrant by the employer, unless the registrant certifies that all such compensation from the employer is derived from compensation and reimbursement paid by clients listed under subsection (c) of this section and all such compensation and reimbursement is reported under that subsection. (c) The registrant shall report the following information with respect to each client of the registrant: (1) the client's full name; (2) the client's address; (3) the subject matter on which the registrant lobbies for the client; and (4) the compensation and reimbursement to lobby paid by the client. (d) If an employer or client of the registrant is a corporation whose shares are not publicly traded, including a non-profit corporation, in addition to the information required under subsection (b) or (c) of this section for the corporation the registrant must report: (1) number of shareholders in the corporation; (2) name and address of each officer of the corporation; (3) name and address of each member of the corporation's board of directors; and (4) if the corporation has shares, the name of each person who owns at least 10% of the shares of the corporation. (e) If an employer or client of the registrant is an unincorporated association, including a business, trade, or consumer interest association, in addition to the information required under subsection (b) or (c) of this section for the association the registrant must report: (1) number of members in the association; (2) the name of each person who determines the policy of the association relating to legislative or administrative action; (3) a full description of the methods by which the association develops and makes decisions about positions on policy relating to legislative or administrative action; and (4) a list of those persons, if any, who have made a grant or contribution to the association of more than $250 per year, in addition to or instead of dues or fees. (f) the information concerning any person employed or retained by the registrant or the registrant's employer to assist the registrant in lobbying, as provided in sec.30.57 of this title (relating to Persons Who Assist a Registrant). (g) A registrant retained or employed by a lobbying entity shall report, as the agent of that lobbying entity, the information required under this section for each client who pays compensation or reimbursement to the lobbying entity as consideration for the registrant's lobbying on behalf of that client, whether the client may be characterized for any other purposes as a client of the registrant, a client of the lobbying entity, or otherwise. sec.30.59. Reporting Compensation and Reimbursement. (a) When this title requires a registrant to report compensation or reimbursement to lobby, the amount shall be reported by the following categories unless the registrant chooses to report the exact amount: (1) less than $10,000; (2) at least $10,000, but less than $25,000; (3) at least $25,000, but less than $50,000; (4) at least $50,000, but less than $100,000; (5) at least $100,000, but less than $150,000; (6) at least $150,000, but less than $200,000; or (7) $200,000 or more. (b) When a person is required by this title to report compensation received, the amount reported may be: (1) compensation actually received during the period for which the compensation is reported; or (2) compensation earned during the period for which the compensation is reported; or (3) compensation that will be received or earned during the period for which the compensation is reported, under the terms of an agreement between the registrant and the person who compensates the registrant. (c) An amount reported as compensation received under subsection (b)(3) of this section shall be identified on the report as compensation to be received or earned under the terms of an agreement between the registrant and the person who compensates the registrant. (d) The registrant must amend any report where compensation reported under subsection (b)(3) of this section would be inaccurate if an amendment is not filed. (e) Compensation reported shall include all compensation for lobbying, including both compensation for direct communication with a member and compensation for services necessary to prepare for that direct communication, if the compensation would not have been necessary but for the direct communication. (f) Reimbursement received for the following office expenses is not required to be reported under this section: (1) long-distance telephone charges; (2) delivery charges; (3) photocopy expense; (4) fax expense; (5) office supplies; (6) postage; (7) dues and subscriptions; (8) transportation not involving direct contact; and (9) secretarial or clerical time described under sec.30.19(a)(10) of this title (relating to Exclusions from the Compensation Threshold). (g) Reimbursement received by a registrant for a lobby expenditure that the registrant reports under sec.32.5 of this title (relating to Monthly Activity Report), or that the registrant will report under sec.32.3 of this title (relating to Annual Activity Report), is not required to be reported under sec. 30.63 of this title (relating to Amended Registration Form). sec.30.61. Reporting Subject Matter. (a) When this title requires a registrant to report the subject matter of the registrant's lobbying activities, the registrant shall describe the legislation or administrative action on which the registrant lobbies or intends to lobby by identifying the appropriate subject matter categories listed on the form or in instructions to the form. (b) If known or reasonably available to the registrant at the time the report is filed, the registrant shall report the following information: (1) the bill number of any legislation concerning subject matter described in subsection (a) of this section that was specifically discussed or identified in a conversation with, or letter to, a member; (2) the docket number of any administrative action concerning a matter described in subsection (a) of this section, and the agency at which the administrative action is pending; and (3) any other legislative or administrative designation of the legislation or administrative action that identifies the specific matter on which the registrant will lobby. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333530 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Rules Concerning Reports 1 TAC sec.sec.30.119, 30.121, 30.123, 30.127, 30.131, 30.133, 30. 135, 30.137 The Texas Ethics Commission adopts the repeal of sec. sec.30.119, 30.121, 30. 123, 30.127, 30.131, 30.133, 30.135, and 30.137, concerning late personal financial disclosure reports filed with the commission. The repealed sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7065). The repealed sections are being replaced by a more comprehensive recodification of commission rules resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No public comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333546 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 32. Activity Reporting by a Lobbyist Subchapter A. Reports to be Filed 1 TAC sec.sec.32.1, 32.3, 32.5 The Texas Ethics Commission adopts new sec.sec.32.1, 32.3, and 32.5, concerning the filing of activity report by a lobbyist with the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7065). The new sections set forth the procedures and requirements for filing activity reports by those certain persons registered as lobbyists. The sections provide information on the lobbyists activity report, the annual activity report, and the monthly activity report; the contents of an activity report including the attribution and apportionment of expenditures and the time of reporting those expenditures; and detailed reporting. The new sections set forth basic guidelines and criteria to be followed by any person who must file activity reports as a lobbyist under the Texas Government Code, Chapter 305. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333528 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter B. General Information to be Reported 1 TAC sec.sec.32.21, 32.23, 32.25, 32.27, 32.29, 32.31 The Texas Ethics Commission adopts new sec.sec.32.21, 32.23, 32.25, 32.27, 32. 29, and 32.31, concerning the filing of activity reports by a lobbyist with the commission. sec. sec.32.21, 32.27, 32.29, and 32.31 are adopted without changes; sec.sec.32.23, and 32.25 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7066). The changes are non-substantive and are designed to clarify and correct. The new sections set forth the procedures and requirements for filing activity reports by those certain persons registered as lobbyists. The sections provide information on the lobbyist activity report, the annual activity report, and the monthly activity report; the contents of an activity report including the attribution and apportionment of expenditures and the time of reporting those expenditures; and detailed reporting. The new sections set forth basic guidelines and criteria to be followed by any person who must file activity reports as a lobbyist under the Texas Government Code, Chapter 305. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.32.23. Attribution of Expenditures. A lobby expenditure reported under sec.32.11 (c) of this title (relating to Contents of Lobbyist Activity Report) shall be attributed as follows: (1) for a food or beverage expenditure, to the person who consumed the food or beverage; (2) for a transportation or lodging expenditure, to the person for whom the expenditure was paid; (3) for an entertainment expenditure, or for an expenditure for the attendance of a member at a political fundraiser or charity event, to the person for whom the admission or ticket or contribution was paid; or (4) for a gift, award, or memento, to the person receiving the gift, award, or memento. sec.32.25. Apportionment of Expenditures. (a) If a registrant makes a lobby expenditure to lobby more than one member, and cannot reasonably determine the amount of that lobby expenditure to directly attribute to a member, the registrant shall apportion the expenditure according to the total number of persons to whom the expenditure could be attributed. (b) The registrant shall provide a detailed report as required by Subchapter C of this chapter (relating to Detailed Information to be Reported) if a lobby expenditure apportioned under this section and attributed to a member must be reported under that 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 November 18, 1993. TRD-9333527 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter C. Detailed Information to be Reported 1 TAC sec.sec.32.51, 32.53, 32.55, 32.57, 32.59, 32.61 The Texas Ethics Commission adopts new sec.sec.32.51, 32.53, 32.55, 32.57, 32.59, and 32.61, concerning the filing of activity reports by a lobbyist with the commission. Sections 32.53, 32.55, 32.57, 32.59, and 32.61 are adopted without changes; and sec.32.51 is adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register, (18 TexReg 7067). The word "the" is substituted for the word "all" in sec.32.51(b) (5). It is non-substantive and is designed to clarify. The new sections of set forth the procedures and requirements for filing activity reports by those certain persons registered as lobbyists. The sections provide information on the lobbyist activity report, the annual activity report, and the monthly activity report; the contents of an activity report, including the attribution and apportionment of expenditures and the time of reporting those expenditures; and detailed reporting. The new sections set forth basic guidelines and criteria to be followed by any person who must file activity reports as a lobbyist under the Texas Government Code, Chapter 305. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.32.51. Detailed Reports for Transportation or Lodging. (a) Detailed information must be reported by a registrant if the registrant makes lobby expenditures for transportation or lodging that are attributable to a member and exceed $50 during a day. (b) The information reported under this section shall include: (1) the name of the member to whom the expenditure is attributed under sec. 32.23 of this title (relating to Attribution of Expenditures); (2) the purpose of the transportation or lodging, including the name of the conference, seminar, or other event, if applicable; (3) the dates on which the member used the transportation or lodging; (4) the name of the carrier; (5) identification of the departure and arrival cities; and (6) the name and address of the hotel, motel, or other place where lodging was provided. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333526 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 34. Conduct of Lobbyists Subchapter A. Restrictions on Lobby Expenditures 1 TAC sec.sec.34.1, 34.3, 34.5, 34.7, 34.9, 34.11 The Texas Ethics Commission adopts new sec.sec.34.1, 34.3, 34.5, 34.9, 34. 11, and 34.13, concerning the conduct of those certain persons registered as lobbyists with the commission. Section 34.1 and sec.34.11 are adopted with changes to the proposed text as published in the October 15, 1993, issue of the Texas Register, (18 TexReg 7069). Section 34.1(a)(3) has been changed to sec.34.1(b); subsections (b) and (c) are now subsection (c) and (d). Additionally, new language has been substituted in new sec.34.1(b). Section 34. 11 was changed to correct a cross-reference. Sections 34.3, 34.5, 34.9, 34.11, and 34.13 are adopted without changes and will not be republished. Section 34. 7 is being withdrawn. The new sections set forth the restrictions on lobbying expenditures and prohibit certain conduct by lobbyists. They provide information and guidelines on expenditures, presence, gifts, and loans. The new sections set forth basic guidelines and criteria to be followed by any person registered as a lobbyist under the Texas Government Code, Chapter 305. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. sec.34.1. Maximum Lobby Expenditures. (a) During a calendar year, a registrant shall not make a lobby expenditure that by itself or in an aggregate amount exceeds $500 for: (1) entertainment attributable to a member; or (2) a gift or gifts attributable to a member. (b) A registrant shall not make a lobby expenditures for an award or memento attributable to a member that exceeds $500. (c) A registrant may make lobby expenditures in any amount for food and beverages attributable to a member, a member's spouse, or a member's dependent child, or for the member to attend one or more political fundraiser or charity events. (d) Subject to the restrictions imposed by sec.34.5 of this title (relating to Expenditures for Transportation and Lodging), a registrant may make lobby expenditures in any amount for transportation or lodging attributable to a member. sec.34.11. Gifts to a Member by a Related Registrant. Neither sec.34.1 of this title (relating to Maximum Annual Lobby Expenditures) nor sec.34.9 of this title (relating to Gift of Cash or Negotiable Instrument) prohibits or restricts a gift to a member by a registrant who is related to that member within the second degree of affinity or consanguinity, as determined in accordance with the Government Code, Chapter 573, Subchapter B (relating to Relationships by Consanguinity or by Affinity). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333525 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Subchapter B. Prohibited Conduct 1 TAC sec.sec.34.31, 34.33, 34.35 The Texas Ethics Commission adopts new sec.sec.34.31, 34.33, and 34.35, concerning the conduct of those certain persons registered as lobbyists with the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7070). The new sections set forth the restrictions on lobbying expenditures, and prohibit certain conduct by lobbyists, and provide information and guidelines on expenditures, presence, gifts, and loans. The new sections set forth basic guidelines and criteria to be followed by any person registered as a lobbyist under the Texas Government Code, Chapter 305. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333524 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 40. Registration and Regulation of Lobbyists 1 TAC sec.sec.40.1, 40.3, 40.5, 40.7, 40.9, 40.11, 40.13, 40.15, 40.19, 40,21, 40.23, 40.25, 40.27, 40.31, 40.33, 40.119, 40.121, 40.123, 40. 127, 40.131, 40.133, 40.135, 40.137 The Texas Ethics Commission adopts the repeal sec.sec.40.1, 40.3, 40.5, 40.7, 40.9, 40.11, 40.13, 40.15, 40.19, 40,21, 40.23, 40.25, 40.27, 40.31, 40.33, 40. 119, 40.121, 40.123, 40.127, 40.131, 40.133, 40.135, and 40.137, concerning registration and regulation of lobbyists. The repealed sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7071). The repealed sections are being replaced by a more comprehensive recodification of commission rules resulting in the assignment of chapter and section numbers to those sections being retained or replaced. No public comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333545 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 40. Financial Disclosure for Public Officers 1 TAC sec.sec.40.1, 40.3 The Texas Ethics Commission adopts the new sec.40.1, and sec.40.3, concerning the for used by certain public officials in filing their financial disclosure statements with the commission. The new sections are adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7071). The new sections adopts by reference the financial statement form prescribed by the commission, and provides an exception for reporting expenditures previously reported on that person's sworn of contributions and expenditures filed pursuant to the Election Code, Title 15. The new sections provide the necessary forms and form revisions to be used by any person filing a report pursuant to the Texas Government Code, Chapter 572. No public comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Government Code, Chapter 571 which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333523 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Chapter 50. Legislative Salaries and Per Diem 1 TAC sec.50.1 The Texas Ethics Commission adopts new sec.50.1, concerning legislative salaries and legislative per diem. The new section is adopted without changes to the proposed text as published in the October 15, 1993, issue of the Texas Register (18 TexReg 7072). The new section sets the legislative per diem at $90. This section fulfills the statutory requirement of setting the amount of per diem to be paid to each member of the legislature and the lieutenant governor. No public comments were received regarding adoption of the new section The new section is adopted under the Texas Government Code, Chapter 571, which provides the Texas Ethics Commission with the authority to promulgate and adopt rules concerning operations of the commission, or the filing of reports mandated by any statute administered or enforced by the commission. Additionally, the new section is adopted in compliance with Article III, sec.24 and sec.24a, and Article IV, sec.17, of the Texas Constitution, which provide the commission with the authority to set the per diem for members of the legislature and the lieutenant governor. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 18, 1993. TRD-9333522 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: December 31, 1993 Proposal publication date: October 15, 1993 For further information, please call: (512) 463-5800 Part IV. Office of the Secretary of State Chapter 79. Corporations General Information and Correspondence 1 TAC sec.79.13, sec.79.14 The Office of the Secretary of State adopts amendments to sec.79.13 and sec.79.14, with changes to the proposed text as published in the November 9, 1993, issue of the Texas Register (18 TexReg 8057). The changes to the proposed text consist solely of corrections to punctuation. The amendments are necessary to implement legislative changes contained in House Bill 1494, 73rd Legislature, Regular Session (1993). That bill, effective January 1, 1994, added Article 10.07 to the Texas Non-Profit Corporation Act, enabling non-profit corporations to file documents with delayed effective dates. The amendments will implement the provisions of Article 10.07 of the Texas Non- Profit Corporation Act which allow non-profit corporations to file documents with delayed effective dates. No comments were received regarding adoption of the amendments. The amendments are adopted under Texas Civil Statutes, Article 6252-13, and the Government Code, sec.405.031, which give the Secretary of State the authority to adopt rules of practice reasonably necessary to carry out the ministerial duties of the office. The Texas Non-Profit Corporation Act, Article 1396-9.04, gives the Secretary of State the power and authority reasonably necessary to enable him to administer the Act efficiently and to perform the duties therein imposed upon him. sec.79.13. Determining the Date of the 90th Day After the Date of Filing. (a) Four purposes of filing documents which will become effective upon the occurrence of events or facts that may occur in the future pursuant to the Texas Business Corporation Act, Article 10.03; the Texas Revised Limited Partnership Act, Article 2.12; the Texas Limited Liability Company Act, Article 9.03; or the Texas Non-Profit Corporation Act, Article 1396-10.07, the date of the 90th day after the date of filing shall be deemed to be 90 days after the document is delivered in person or placed in the United States Post Office or in the hands of a common or contract carrier properly addressed to the Office of the Secretary of State. The postmark or receipt mark (if received by a common or contract carrier) will be prima facie evidence of the date that such statement was deposited with the post office or carrier. The person filing the document may show by competent evidence that the actual date of posting was to the contrary. (b) If a document submitted with a delayed effective condition pursuant to the Texas Business Corporation Act, Article 10.03; the Texas Revised Limited Partnership Act, Article 2.12; the Texas Limited Liability Company Act, Article 9.03; or the Texas Non-Profit Corporation Act, Article 10.07, does not conform to law, it will be returned to sender. When the document is corrected and resubmitted, the date of the 90th day after the date of filing may be recalculated and restated in the document to be 90 days after the document is resubmitted by delivery in person or placement in the United States Post Office or in the hands of a common or contract carrier properly addressed to the Office of the Secretary of State. The postmark or receipt mark generated in connection with the resubmission (if received by a common or contract carrier) will be prima facie evidence of the date that such statement was deposited with the post office or carrier. The person filing the document may show by competent evidence that the actual date of posting of the resubmission was to the contrary. The secretary of state will refer to the contents of the document to determine the date of the 90th day from the date of filing or refiling. (c) To calculate the date of the 90th day from the date of filing, refer to calendar days as set forth in sec.71.5 of this title (relating to times for taking action). sec.79.14. Statement Regarding Delayed Effective Condition. (a) Contents. Pursuant to the Texas Business Corporation Act, Article 10.03; the Texas Revised Limited Partnership Act, Article 2.12; the Texas Limited Liability Company Act, Article 9.03; or the Texas Non-Profit Corporation Act, Article 1396-10.07, when a condition triggering the effectiveness of a document filing has been satisfied or waived, a statement regarding the delayed effective condition must be submitted to the secretary of state. Such statement must contain the following information: (1) the name of the business entity; (2) the charter or file number of the entity; (3) the document to which the statement applies; (4) the date of filing of the document to which the statement applies; (5) the date on which the condition was satisfied or waived; and (6) the signature required by the Texas Business Corporation Act, Article 10.03; the Texas Revised Limited Partnership Act, Article 2.12; the Texas Limited Liability Company Act, Article 9.03; or the Texas Non-Profit Corporation Act, Article 1396-10.07. (b) Timeliness. Pursuant to the Texas Business Corporation Act, Article 10.03; the Texas Revised Limited Partnership Act, Article 2.12; the Texas Limited Liability Company Act, Article 9.03; or the Texas Non-Profit Corporation Act, Article 1396-10.07, the statement regarding the delayed effective condition should be filed in the Office of the Secretary of State by the date of the 90th day from the date of filing as defined in sec.79.13 of this title (relating to Determining the Date of the 90th Day After the Date of Filing). Statements regarding the delayed effective condition received after the date of the 90th day from the date of filing will be filed for record; however, the secretary of state will not determine substantial compliance with the provisions of the statutes referenced in 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 10, 1993. TRD-9333501 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 1, 1994 Proposal publication date: November 9, 1993 For further information, please call: (512) 463-5701 Part XV. Health and Human Services Commission Chapter 351. Coordinated Planning and Delivery of Health and Human Services 1 TAC sec.351.3 The Health and Human Services Commission (HHSC) adopts new sec.351.3, concerning the groups and committees that advise the commission, without changes to the proposed text as published in the November 9, 1993, issue of the Texas Register (18 TexReg 8058). The rule is required by Senate Bill 383, 72nd Texas Legislature. The new rule's function is to describe the purpose, responsibilities, method of reporting to the commission, and duration of each advisory committee. No comments were received regarding adoption of the new section. The new rule is adopted under Texas Revised Civil Statutes, article 4413(502) sec.18, which give the commission authority to establish advisory committees, and Article 6252-33, which require an agency that is advised by advisory committees to describe in a rule the committees' purpose, tasks, reporting requirements, and duration. 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 10, 1993. TRD-9333480 Debby Gardner General Counsel Texas Health and Human Services Commisssion Effective date: December 31, 1993 Proposal publication date: November 9, 1993 For further information, please call: (512) 502-3200 TITLE 4. AGRICULTURE Part I. Texas Department of Agriculture Chapter 3. Boll Weevil Eradication Program Subchapter A. Election Procedures 4 TAC sec.sec.3.1, 3.4-3.6 The Texas Department of Agriculture (the department) adopts amendments to sec.sec.3.1, 3.4, 3.5, and 3.6, concerning election procedures for the conducting of elections by the Boll Weevil Eradication Foundation, without changes to the proposed text as published in the November 9, 1993, issue of the Texas Register (18 TexReg 8061). The amendments are adopted to make the election process more efficient and increase the number of eligible voters. The amendment to sec.3.1 changes the definition of eligible voter to make that definition consistent with that used in the industry and in implementation of federal cotton programs. An amendment to sec.3.4 corrects a citation error. An amendment to sec.3.5 clarifies who is to be represented on the committee canvassing votes in elections. Other amendments change, throughout the sections, the unit of cotton acreage to be used in determining cotton production of voters and make other changes for purposes of clarification. No comments were received regarding adoption of the amendment. The amendments are adopted under the Texas Agriculture Code, sec.74.114, which requires the department to adopt procedures for conducting of elections by the Boll Weevil Eradication Foundation. 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 10, 1993. TRD-9333452 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: December 31, 1993 Proposal publication date: November 9, 1993 For further information, please call: (512) 463-7583 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 1. General Administration Subchapter A. Rules of Practice and Procedure 28 TAC sec.1.90 The Texas Department of Insurance adopts new sec.1.90, concerning the joint memorandum of understanding (MOU) to be entered into by the Texas Department of Insurance (TDI) and the State Office of Administrative Hearings (SOAH), with changes to the proposed text as published in the October 29, 1993, issue of the Texas Register (18 TexReg 7284). The rule is necessary to comply with statutory requirements in the Insurance Code, Article 1.33B(d), which mandates the commissioner of TDI and the chief administrative law judge of SOAH to adopt by rule an MOU governing hearings held by SOAH under the Insurance Code and other insurance laws of this state. The statute provides that the MOU shall require the chief administrative law judge and the commissioner of insurance to cooperate in conducting hearings under Article 1.33B and that the MOU may authorize SOAH to perform any procedural act, including the giving of notice, that is required to be performed by the commissioner under the Insurance Code or another insurance law of this state. The changes made in the text are reflected in (4) Summary of Comments and Agency Response to Comments in this preamble. The rule will accomplish the efficient and expeditious administration of TDI hearings by establishing the procedures to be used by each agency and by clearly delineating each agency's responsibilities. Additionally, the rule informs the public of each agency's responsibilities and the procedures for the institution, conduct and determination of proceedings before SOAH on behalf of TDI. One commenter raised the concern that the format of the proposal was cumbersome and confusing. The commenter suggested a more abbreviated format and suggested deleting language that was not essential to a clear understanding of the proposal. The department agrees and has reformatted the proposal accordingly. Two commenters suggested that notice be given to all parties when an ALJ amends an order. The department agrees and has modified the proposal in subsection (g)(3) to require the ALJ to promptly provide a copy of any amended proposals for decision and proposed orders to the commissioner and all parties. Two commenters recommended that notice be given to all parties if a matter is remanded. The department agrees and has modified subsection (g)(6) of the proposal to include language requiring the ALJ to notify the parties when a case is remanded.

>The Schedule of Benefits (PPO Plan) for the Preventive and Primary Care Benefit Plan (Form Number 2055 SCHPO.PP) shall be in the language and format prescribed. This Schedule of Benefits shall be used when the plan includes preferred provider (PPO) benefits. (i) The terms "Policy Year Deductible", "Non-Preferred Provider Policy Year Deductible" and "Preferred Provider Policy Year Deductible" are variable to allow the same policy year deductible to apply to both preferred and non- preferred provider options or to allow a "Non-Preferred Provider Policy Year Deductible" and a "Preferred Provider Policy Year Deductible" if different deductibles will apply. A "Per Visit Deductible" may be used in lieu of a Preferred Provider Policy Year Deductible. The deductible may be waived for either option. (ii) A variable amount of $100 or $250 for the Policy Year Deductible or the Non-Preferred Provider Policy Year Deductible may be elected by the small employer carrier or the small employer. The Preferred Provider Policy Year Deductible may be any lesser amount. (iii) A Per Visit Deductible of $10 or $15 may be included for the preferred provider option except for the Preventive Care Benefit. (iv) A variable Percentage Payable of 90% or 100% when preferred providers are utilized shall be determined by the small employer carrier or offered as an option to the small employer. The Percentage Payable for the Preventive Care Benefit is not variable and shall be 100%. (v) The optional Prescription Drug Benefit Rider shall be included on the Schedule of Benefits when provided. This optional rider is allowed to be included with the Preventive and Primary Care Benefit Plan. The prescription drug benefit shall be provided at a Percentage Payable of at least 50%, but may be provided at a greater Percentage Payable. The small employer carrier may elect to provide the prescription drug benefit through a prescription drug card program with a deductible not to exceed $8.00 per prescription or refill for a generic drug, or name brand drug if less than the generic drug, and $12.00 per prescription or refill for a name brand drug. (C) The Policy Definitions for the Preventive and Primary Care Benefit Plan (Form Number 2055 DEF.PP) shall be in the language and format prescribed. (i) The term and definition "Certificate of Insurance" is variable to be included or omitted as appropriate. (ii) The terms and definitions for "Contracting Facility" and "Noncontracting Facility" are variable for Chapter 20 companies only and neither provision shall be included by other than Chapter 20 companies. (iii) The term and definition of "Employer" provide a variable to include an Employer member of an association when a policy is to be issued to an association. (iv) The term and definition of "Hospital" is variable only to allow for additional criteria for purposes of clarification or to accommodate carriers with unique operations and special statutory rights, such as Chapter 20 companies. (v) The term and definition of "Policyholder" shall be included in the Policy Definitions as appropriate to define the Policyholder as the Employer, the Trustee of a Multiple Employer Trust or the Association. (vi) The alternate definitions for the term "Policy Year" are included to allow the small employer to select the definition that is consistent with the carrier's and employer's practices. The definition, as selected, shall be included in the policy/certificate. (vii) The term and definition of "Preexisting Condition" is variable only to the extent that it may be omitted in its entirety if the small employer carrier elects not to impose a limitation for preexisting conditions. If a preexisting condition limitation applies, this provision shall be included in its entirety. (D) The Benefits Provided for the Preventive and Primary Care Benefit Plan (Form Number 2055 BEN.PP) shall be in the language and format prescribed. (E) The Exclusions and Limitations for the Preventive and Primary Care Benefit Plan (Form Number 2055 EXC.PP) shall be in the language and format prescribed. Exclusions of elective abortions, if any, are to be determined by an agreement between the employer and the small employer carrier and must be included in the Exclusions and Limitations of the policy, certificate and/or outline of coverage. Other variable exclusions are allowed to be included by Chapter 20 companies only. (F) The Prescription Drug Benefit Rider (Form Number 2055 PDR), if elected, shall be in the language and format prescribed. This optional rider is allowed with the Preventive and Primary Care Benefit Plan. The variable 50% may be changed to provide a greater percentage payable under this rider. (2) This paragraph discusses the in-hospital benefit plan. The following forms shall be included in this plan as prescribed. Variable language in the prescribed forms is indicated by brackets. (A) The Schedule of Benefits (Non-PPO Plan) for the In-Hospital Benefit Plan (Form Number 2055 SCH.IH) shall be in the language and format prescribed. This Schedule of Benefits shall be used when the plan does not include preferred provider (PPO) benefits. (i) A variable amount of $100 or $250 for the Hospital Deductible Per One Period of Hospital Confinement may be selected by the small employer carrier or offered as an option to the small employer. (ii) A variable amount of $2,000 or $5,000 per individual for the Policy Year Copayment Maximum may be selected by the small employer carrier or offered as an option to the small employer. (iii) The optional Supplementary Accidental Injury Benefit shall be included on the Schedule of Benefits, when elected. This optional rider is allowed with the In-Hospital Benefit Plan. (B) The Schedule of Benefits (PPO Plan) for the In-Hospital Benefit Plan (Form Number 2055 SCHPO.IH) shall be in the language and format prescribed. This Schedule of Benefits shall be used when the plan includes preferred provider (PPO) benefits. (i) The terms "Hospital Deductible Per One Period of Hospital Confinement", "Hospital Preferred Provider Deductible Per One Period of Hospital Confinement" and "Hospital Non-Preferred Provider Deductible Per One Period of Hospital Confinement" are variable to allow the same hospital deductible per confinement to apply to both preferred and non-preferred options or to allow a Hospital Preferred Provider Deductible Per One Period of Hospital Confinement and a Hospital Non-Preferred Provider Deductible Per One Period of Hospital Confinement if different deductibles will apply. The deductible may be waived for either option. (ii) A variable amount of $100 or $250 for the Hospital Deductible Per One Period of Hospital Confinement or the Hospital Non-Preferred Provider Deductible Per One Period of Hospital Confinement may be elected by the small employer carrier or offered as an option to the small employer. (iii) A variable amount of $2,000 or $5,000 per individual for the Policy Year Copayment Maximum may be elected by the small employer carrier or offered as an option to the small employer. A combination of preferred provider and non- preferred provider amounts for the Policy Year Copayment Maximum may be provided. (iv) A variable Percentage Payable of 80%, 90% or 100% for the Inpatient Hospital Expense Benefit and Outpatient Follow-Up Care Benefit and a variable Percentage Payable of 70% or 80% for Mental Illness or Chemical Dependency Benefits when preferred providers are utilized shall be determined by the small employer carrier or offered as an option to the small employer. (v) A variable Percentage Payable of 70% or 80% for the Inpatient Hospital Expense Benefit and Outpatient Follow-Up Care Benefit when non-preferred providers are utilized shall be determined by the small employer carrier or offered as an option to the small employer. (vi) The optional Supplementary Accidental Injury Benefit shall be reflected on the Schedule of Benefits, when the optional rider is elected with the In- Hospital Benefit Plan. (C) The Schedule of Benefits (Non-PPO Plan) for the Preventive and Primary Care Benefit Rider (Form Number 2055 SCH.PPR) shall be added to the In-Hospital Benefit Plan, when elected, in the language and format prescribed. This Schedule of Benefits shall be used when the plan does not include preferred provider (PPO) benefits. Variable amounts of $100 or $250 for the Policy Year Deductible may be elected by the small employer carrier or offered as an option to the small employer. (D) The Schedule of Benefits (PPO Plan) for the Preventive and Primary Care Benefit Rider (Form Number 2055 SCHPO.PPR) shall be added to the In-Hospital Benefit Plan, when elected, in the language and format prescribed. This Schedule of Benefits shall be used when the plan includes preferred provider (PPO) benefits. (i) The terms "Policy Year Deductible", "Non-Preferred Provider Policy Year Deductible" and "Preferred Provider Policy Year Deductible" are variable to allow the same policy year deductible to apply to both preferred and non- preferred provider options or to allow a "Non-Preferred Provider Policy Year Deductible" and a "Preferred Provider Policy Year Deductible" if different deductibles will apply. A "Per Visit Deductible" may be used in lieu of a Preferred Provider Policy Year Deductible. The deductible may be waived for either option. (ii) A variable amount of $100 or $250 for the Policy Year Deductible or the Non-Preferred Provider Policy Year Deductible may be elected by the small employer carrier or offered as an option to the small employer. The Preferred Provider Policy Year Deductible may be any lesser amount. (iii) A Per Visit Deductible of $10 or $15 may be included for the preferred provider option except for the Preventive Care Benefit. (iv) A variable Percentage Payable of 90% or 100% when preferred providers are utilized shall be determined by the small employer carrier or offered as an option to the small employer. The Percentage Payable for the Preventive Care Benefit is not variable and shall be 100%. (E) The Policy Definitions for the In-Hospital Benefit Plan (Form Number 2055 DEF.IH) shall be in the language and format prescribed. (i) The term and definition "Certificate of Insurance" is variable to be included or omitted as appropriate. (ii) The terms and definitions for "Contracting Facility" and "Noncontracting Facility" are variable to be included by Chapter 20 companies only and neither provision shall be included by other than Chapter 20 companies. (iii) The term and definition of "Employer" provide a variable to include an Employer member of an association when a policy is to be issued to an Association. (iv) The term and definition of "Hospital" is variable only to allow for additional criteria for purposes of clarification or to accommodate carriers with unique operations and special statutory rights, such as Chapter 20 companies. (v) The term "One Period of Hospital Confinement" provides a variable number of days of 90, 120, 150, or 180 to be included as elected by the small employer carrier or the small employer to determine one period of hospital confinement. (vi) The term and definition of "Policyholder" shall be included in the Policy Definitions as appropriate to define the Policyholder as the Employer, the Trustee of a Multiple Employer Trust or the Association. (vii) The alternate definitions for the term "Policy Year" are included to allow the small employer carrier to select the definition that is consistent with the carrier's and employer's practices. The definition, as selected, shall be included in the policy/certificate. (viii) The term and definition of "Preexisting Condition" is variable only to the extent that it may be omitted in its entirety if the small employer carrier elects not to impose a limitation for preexisting conditions. If a preexisting condition limitation applies, this provision shall be included in its entirety. (F) The Benefits Provided for the In-Hospital Benefit Plan (Form Number 2055 BEN.IH) shall be in the language and format prescribed. The Individual Policy Year Copayment Maximum amount of $2,000 or $5,000 elected shall be inserted in this provision. (G) The Exclusions and Limitations for the In-Hospital Benefit Plan (Form Number 2055 EXC.IH) shall be in the language and format prescribed. Exclusions of elective abortions, if any, are to be determined by an agreement between the employer and the small employer carrier and must be included in the exclusions and limitations of the policy, certificate and/or outline of coverage. Other variable exclusions are allowed to be included by Chapter 20 companies only. (H) The Supplementary Accidental Injury Benefit Rider for the In-Hospital Benefit Plan (Form Number 2055 ACCR) shall be in the language and format prescribed. This optional rider is allowed with the In-Hospital Benefit Plan. (I) The Preventive and Primary Care Benefit Rider (Form Number 2055 PPR) added to the In-Hospital Benefit Plan shall be in the language and format prescribed. This optional rider is allowed with the In-Hospital Benefit Plan. (3) The standard health benefit plan is discussed in this paragraph. The following forms shall be included in this plan as prescribed. Variable language in the prescribed forms is indicated by brackets. (A) The Schedule of Benefits (Non-PPO Plan) for the Standard Health Benefit Plan (Form Number 2055 SCH.STD) shall be in the language and format prescribed. This Schedule of Benefits shall be used when the plan does not include preferred provider (PPO) benefits. (i) A variable amount of $250 or $500 for the Policy Year Deductible may be elected by the small employer carrier or offered as an option to the small employer. (ii) A variable amount of $2,000 per individual or $5,000 per individual for the Policy Year Copayment Maximum may be elected by the small employer carrier or offered as an option to the small employer. (iii) A variable amount of $6,000 per family or $15,000 per family for the Policy Year Copayment Maximum may be elected by the small employer carrier or offered as an option to the small employer. (iv) The variable limitation of a lifetime maximum of three separate series of treatment for each insured person for Chemical Dependency benefits shall be reflected when the small employer carrier elects to include this limitation. (v) The Prescription Drug Benefit is variable only to the extent that the Percentage Payable may be greater than 50% or the small employer carrier may elect to provide the prescription drug benefit through a prescription drug card program with a deductible not to exceed $8.00 per prescription or refill for a generic drug, or name brand drug if less than the generic drug, and $12 per prescription or refill for a name brand drug. (vi) All benefits added by riders shall be reflected on the Schedule of Benefits. (B) The Schedule of Benefits (PPO Plan) for the Standard Health Benefit Plan (Form Number 2055 SCHPO.STD). This Schedule of Benefits shall be used when the plan includes preferred provider (PPO) benefits. (i) The terms "Policy Year Deductible", "Non-Preferred Provider Policy Year Deductible" and "Preferred Provider Policy Year Deductible" are variable to allow the same policy year deductible to apply to both preferred and non- preferred provider options or to allow a "Non-Preferred Provider Policy Year Deductible" and a "Preferred Provider Policy Year Deductible" if different deductibles will apply. A "Per Visit Deductible" may be used in lieu of any policy year deductible. The deductible may be waived for either option. (ii) A variable amount of $250 or $500 for the Policy Year Deductible or the Non-Preferred Provider Policy Year Deductible may be elected by the small employer carrier or offered as an option to the small employer. The Preferred Provider Policy Year Deductible may be any lesser amount. (iii) A Per Visit Deductible of $10 or $15 is allowed except for the Preventive Care Benefit. (iv) A variable amount of $2,000 per individual or $5,000 per individual for the Policy Year Copayment Maximum may be elected by the small employer carrier or offered as an option to the small employer. The preferred provider and non- preferred provider amounts may be combined for the Policy Year Copayment Maximum. (v) A variable amount of $6,000 per family or $15,000 per family for the Policy Year Copayment Maximum may be elected by the small employer carrier or the small employer. The preferred provider and non-preferred provider amounts may be combined for the Policy Year Copayment Maximum. (vi) A variable Percentage Payable of 80%, 90% or 100% when preferred providers are utilized shall be determined by the small employer carrier. The Percentage Payable for the Preventive Care Benefit is not variable and shall be 100% with no deductible. (vii) A variable Percentage Payable of 70% or 80% when non-preferred providers are utilized shall be determined by the small employer carrier. The Percentage Payable for Preventive Care Benefits is not variable and shall be at 100% with no deductible. (viii) The variable limitation of a lifetime maximum of three separate series of treatments for each insured person for Chemical Dependency benefits shall be reflected when the small employer carrier elects to include this limitation. (ix) The Prescription Drug Benefit is variable only to the extent that the Percentage Payable may be greater than 50% or the small employer carrier may elect to provide the prescription drug benefit through a prescription drug card program with a deductible not to exceed $8.00 per prescription or refill for a generic drug, or name brand drug if less than the generic drug, and $12 per prescription or refill for a name brand drug. (x) Any benefits added by riders shall be reflected on the Schedule of Benefits. (C) The Policy Definitions for the Standard Health Benefit Plan (Form Number 2055 DEF.STD) shall be in the language and format prescribed. (i) The term and definition "Certificate of Insurance" is variable to be included or omitted as appropriate. (ii) The terms and definitions for "Contracting Facility" and "Noncontracting Facility" are variables to be included by Chapter 20 companies only and neither provision shall be used by other than Chapter 20 companies. (iii) The term and definition of "Employer" provides a variable to include an Employer member of an association when a policy is to be issued to an Association. (iv) The term and definition of "Hospital" is variable only to allow for additional criteria for purposes of clarification or to accommodate carriers with unique operations and special statutory rights, such as Chapter 20 companies. (v) The term and definition of "Policyholder" shall be included in the Policy Definitions as appropriate to define the Policyholder as the Employer, the Trustee of a Multiple Employer Trust or the Association. (vi) The alternate definitions for the term "Policy Year" are included to allow the small employer carrier to select the definition that is consistent with the carrier's and employer's practices. The definition, as selected, shall be included in the policy/certificate. (vii) The term and definition of "Preexisting Condition" is variable only to the extent that it may be omitted in its entirety if the small employer carrier elects not to impose a limitation for preexisting conditions. If a preexisting condition limitation applies, the provision shall be included in its entirety. (D) The Benefits Provided for the Standard Health Benefit Plan (Form Number 2055 BEN.STD) shall be in the language and format prescribed. (i) The Individual Policy Year Copayment Maximum amount elected shall be inserted in this provision. (ii) The Family Policy Year Copayment Maximum elected shall be inserted in this provision. (E) The Exclusions and Limitations for the Standard Health Benefit Plan (Form Number 2055 EXC.STD) shall be in the language and format prescribed. Exclusions of elective abortions, if any, are to be determined by an agreement between the employer and the small employer carrier and must be included in the exclusions and limitaitons of the policy, certificate and/or outline of coverage. Other variable exclusions may be included by Chapter 20 companies only. (F) The Alternate Benefits for Chemical Dependency (Form Number 2055 ACD), if elected by the small employer carrier, shall be attached to the policy, subscriber contract, and certificate and shall be in the language and format prescribed. (4) Forms common to more than one health benefit plan are described in subparagraphs (A) through (D) and shall be included with the benefit provisions of each plan as specified. (A) Alternate Cost Containment Provisions for Large Case Management and Second Opinion Requirements (Form Number 2055 ACC) are provided as optional provisions for all plans. Small employer carriers may use these provisions or modification of these provisions. Other alternate cost containment provisions, including precertification, pre-authorization, case management and utilization review may be used. (B) The Continuation/Conversion Provisions (Form Number 2055 COP) shall be included with all group plans. This form shall be in the language and format prescribed. The small employer carrier shall include one of the variable provisions for continuation upon policy termination. (C) The Coordination of Benefits (Form Number 2055 COB) shall be included with all plans. This form shall be in the language and format prescribed. The variable insert language "This provision will only apply for the duration of your employment with the Employer" is required to be included in the individual policies. (D) The Preferred Provider Provisions (PPO) (Form Number 2055 PPO) shall be included with all plans when preferred provider options are included. This form shall be in the language and format prescribed. Additional provisions may be added as necessary to disclose preferred provider information. (i) Variable provisions are allowed for the definition of service area to be in terms of counties, zip codes, in terms of a 50-mile radius from the employee's principal place of employment unless there are no providers located within the 50 mile radius, or the service area may be described in a specific document to be referenced in the policy/certificate provision. Service areas by zip codes shall be defined in a non-discriminatory manner and in compliance with the Insurance Code, Articles 21.21, sec.4 and 21.21-5. Service area definitions and descriptions shall be filed with the form filings. The small employer carrier shall obtain approval for any definition of the service area by counties or zip codes where the grouping of counties or zip codes exceed a 50-mile radius from the principal place of employment or for a different definition of a service area. (ii) Except as provided in sec.26.21 of this title (relating to Cost Containment), preferred provider arrangements shall comply with Chapter 3, Subchapter X, of this title (relating to Preferred Provider Plans). (E) The Chemical Dependency Benefit Waiver Rider (Form Number 2055 CDW) shall be in the language and format prescribed. The Rider may be included with the Preventive and Primary Care Benefit Plan or the Standard Health Benefit Plan when at least 50% of the employees waive alcohol and substance abuse benefits in writing, and indicate in writing that they have undergone treatment or counseling for alcoholism or substance abuse within the last three years. The rider shall apply only to those employees who have waived these benefits in writing as noted in this subparagraph. Small employer carriers shall comply with the provisions of the Insurance Code, Article 26.47A, before the above waiver is attached to a policy, subscriber contract and certificate. The small employer carrier shall obtain in writing a waiver of alcohol and substance abuse benefits by at least 50% of the employees and the employees shall indicate in writing that they have undergone alcoholism or substance abuse treatment or counseling within the last three years. (5) Applications are discussed in this paragraph. Small employer carriers may use any appropriate application, enrollment, or participation agreement forms. (6) The outline of coverage is discussed in this paragraph. No individual small employer health benefit plan, subject to the Insurance Code, Chapter 26, may be delivered or issued for delivery in this state unless an appropriate Outline of Coverage, as prescribed in the Insurance Code, Article 3.70-1(G) and sec.3.3090 of this title (relating to Outline of Coverage Generally), sec.3.3092 of this title (relating to Format, Content and Readability for Outline of Coverage), and sec.3.3093 of this title (relating to Prescribed Outlines of Coverage), or this paragraph is also issued. If the prototype forms are not used, small employer carriers must follow instructions outlined in sec.sec.3.3090, 3.3092, and 3.3093, as applicable. (A) The Outline of Coverage for the Small Employer Preventive and Primary Care Benefit Plan (Non-PPO) (Form Number 2055 OC.PP) is discussed in this subparagraph. The variables in the Benefits and Exclusions and Limitations provisions correspond to the variables described for the Schedule of Benefits and Exclusions and Limitations in subparagraphs (1)(A) and (E) of this subsection. (B) The optional insert to the Outline of Coverage shall be included when the Prescription Drug Rider (Form Number 2055 OC.PDR) is elected. The Prescription Drug Rider is allowed to be added to the Preventive and Primary Care Benefit Plan (Non-PPO and PPO). The variables in the Benefits provision correspond to the variables described for the Schedule of Benefits in paragraph (1)(A) of this subsection. (C) The Outline of Coverage for the Small Employer Preventive and Primary Care Benefit Plan (PPO), (Form Number 2055 OCPO.PP) is discussed in this subparagraph. The variables in the Benefits and Exclusions and Limitations provisions correspond to the variables described for the Schedule of Benefits in paragraphs (1)(B) and (E) of this subsection. (D) The Outline of Coverage for the Small Employer In-Hospital Benefit Plan (Non-PPO) (Form Number 2055 OC.IH) is discussed in this subparagraph. The variables in the Benefits and Exclusions and Limitations provisions correspond to the variables described for the Schedule of Benefits and Exclusions and Limitations in paragraph (2)(A) and (G) of this subsection. (E) Optional insert to the Outline of Coverage shall be included when the Supplementary Accidental Injury Benefit (Form Number 2055 OC.ACCR) is elected. The Supplementary Accidental Injury Benefit is allowed to be added to the In- Hospital Benefit Plan (Non-PPO and PPO). (F) Optional insert to the Outline of Coverage shall be included when the Preventive and Primary Care Benefit Rider (Form Number 2055 OC.PPR) is elected. The Preventive and Primary Care Benefit Rider is allowed to be added to the In- Hospital Benefit Plan (Non-PPO). The variables in the Benefits provision correspond to the variables described for the Schedule of Benefits in paragraph (2)(C) of this subsection. (G) The Outline of Coverage for the Small Employer In-Hospital Benefit Plan (PPO) (Form Number 2055 OCPO.IH) is discussed in this paragraph. The variables in the Benefits and Exclusions and Limitations provisions correspond to the variables described for the Schedule of Benefits and Exclusions and Limitations in paragraph (2)(B) and (E) of this subsection. (H) Optional insert to the Outline of Coverage shall be included when the Preventive and Primary Care Benefit Rider (Form Number 2055 OCPO.PPR) is elected. The Preventive and Primary Care Benefit Rider is allowed to be added to the In-Hospital Benefit Plan (PPO). The variables in the Benefits provision correspond to the variables described for the Schedule of Benefits in paragraph (2)(D) of this subsection. (I) The Outline of Coverage for the Small Employer Standard Health Benefit Plan (Non-PPO) (Form Number 2055 OC.STD) is discussed in this subparagraph. The variables in the Benefits and Exclusions and Limitations provisions correspond to the variables described for the Schedule of Benefits and Exclusions and Limitations in paragraph (3)(A) and (E) of this subsection. (J) The Outline of Coverage for the Small Employer Standard Health Benefit Plan (PPO) (Form Number 2055 OCPO.STD) is discussed in this subparagraph. The variables in the Benefits and Exclusions and Limitations provisions correspond to the variables described for the Schedule of Benefits and Exclusions and Limitations in sub paragraphs (3)(B) and (E) of this subsection. (j) The HMO forms are discussed in this subsection. (1) Pototype contracts/certificates of coverage and benefit plans have been developed to facilitate implementation of the Insurance Code, Chapter 26, and to streamline the contract approval process. The required benefit language is provided in the prototype Primary and Preventive Health Benefit Plan (Form Number 2055 HMO-PP), and the Standard Health Benefit Plan (Form Number 2055 HMO- STAN). The optional standard provision language is provided in the prototype contract/certificate of coverage (Form Number 2055 HMO-CONT). Variable material in these forms is denoted in brackets. HMOs may use various options within the bracketed material. Exclusions of elective abortions, if any, are to be determined by an agreement between the employer and the small employer carrier and must be in the contract/certificate of coverage at Exclusions. (2) The prototype contracts/certificates of coverage provide for the entire contract to include any applications, certificate of coverage and any attached riders. (3) If the HMO elects to be a small employer carrier and offers a health benefit plan other than the two prototype benefit plans; that plan must be a state-approved health benefit plan that complies with the requirements of Title XI, Public Health Service Act (42 U.S.C., sec.300, et seq.) and the rules adopted under the act. The following content format shall be used: A. CONTRACT FACE PAGE This page shall contain the name, address and telephone numbers (800 number, if applicable) of the health maintenance organization. The prototype contract shall be entitled: Texas Small Employer Group Health Benefit Plan Contract/Certificate of Coverage The attached benefit plan shall be entitled one of the following: 1. Preventive and Primary Care Benefit Plan, or 2. Standard Health Benefit Plan B. TOLL-FREE NUMBER PAGE This form must contain the language prescribed in sec.1.601 of Chapter 1 of this title (relating to Notice of Toll-free Telephone Numbers and Information and Complaint Procedures) and shall be attached as the first, second or third page of the contract. C. CONTRACT PROVISIONS At a minimum, the contract must contain the following provisions: 1. Face Page 2. Benefits 3. Cancellation 4. Claim filing procedure 5. Complaint procedure 6. Conformity with state law 7. Continuation of coverage for certain dependents 8. Conversion privilege 9. Coordination of Benefits 10. Definitions 11. Effective date 12. Eligibility 13. Emergency services 14. Entire contract provision 15. Exclusions and limitations 16. Grace period 17. Incontestability 18. Schedule of charges 19. Service area 20. Subrogation 21. Termination D. RIDERS Riders allowing for additional benefits may be attached to the state approved health benefit plan. The Preventive and Primary Care Benefit Plan may allow the attachment of a prescription drug rider only. The Standard Health Benefit Plan may allow the attachment of unlimited riders. sec.26.16. Renewability of Coverage and Cancellation. (a) Except as provided by the Insurance Code, Article 26.24, a small employer carrier shall renew any small employer health benefit plan for any covered small employer at the option of the small employer, except for: (1) nonpayment of a premium as required by the terms of the plan; (2) fraud or misrepresentation of a material fact by the small employer; (3) noncompliance with small employer health benefit plan provisions. Such provisions may address requirements such as the level of contribution and participation and failure of an employer to maintain status as a small employer subject to requirements of this chapter. Non-compliance with a small employer health benefit plan with respect to an HMO also includes those items set forth in sec.11.506(4)(A) of this title (relating to Mandatory Provisions: Group and Non-Group Agreement and Group Certificate). (b) A small employer carrier may refuse to renew the coverage of an eligible employee or dependent for fraud or misrepresentation of a material fact by that individual. The coverage is also subject to any policy or contractual provisions relating to incontestability or time limits on certain defenses. (c) A small employer carrier may not cancel a small employer health benefit plan except for the reasons specified for refusal to renew under the Insurance Code, Article 26.23(a) and subsections (a) and (b) of this section. A small employer carrier may not cancel the coverage of an eligible employee or dependent except for the reasons specified for refusal to renew under the Insurance Code, Article 26.23(b) and subsections (a) and (b) of this section. (d) Standard benefit plans, provided through an individual policy, shall be guaranteed renewable for life or until maximum benefits have been paid. Other small employer health benefit plans, provided through individual policies, shall be guaranteed renewable for life or until maximum benefits have been paid, or may be guaranteed renewable with the only reasons for termination being those set out in the Insurance Code, Articles 26.23 and 26.24, and this chapter, provided that such plans shall include a conversion provision which provides comparable benefits to those required under Chapter 3, Subchapter F of this title (relating to Group Health Insurance Mandatory Conversion Privilege). All other health benefit plans issued to small employers shall be renewed at the option of the small employer, but may provide for termination in accordance with the Insurance Code, Chapter 26, and this chapter. sec.26.19. Filing Requirements. (a) Each health carrier shall file each form, including, but not limited to, each policy, contract, certificate, agreement, evidence of coverage, endorsement, amendment, enrollment form, and application, that will be used to provide a health benefit plan in the small employer market, with the department in accordance with the Insurance Code, Article 3.42 and Chapter 3, Subchapter A, of this title (relating to Requirements for Filing of Policy Forms, Riders, Amendments, and Endorsements for Life, Accident and Health Insurance and Annuities), or the Insurance Code, Article 20A.09 and sec.11.301(4) of this title (relating to Filing Requirements) or sec.11.302(6) of this title (relating to Service Area Expansion Requests), as applicable, except as provided in subsection (b) of this section. A health carrier desiring to use existing forms to provide a health benefit plan in the small employer market shall file a certification stating which previously approved forms the health carrier intends to use in that market. The form provided at Figure 69 of these sections (Form 2055 CERT ANN) may be used for this purpose. The previously approved forms should be listed in Provision E of that form. The certification shall be forwarded to the department as soon as reasonably possible after January 1, 1994. (b) The following certification forms providing information relating to prototype policy forms, marketing in the small employer market and/or other markets, and geographic service areas, shall accompany each health benefit plan form filing submitted for use in the small employer market. (1) A geographic service area certification (Form Number 2055 CERT GEOG) shall be submitted by each health carrier providing health benefit plans to small employers and shall define the geographic service areas within which the small employer carrier will operate as a small employer carrier. (A) This certification form must accompany each health benefit plan form filing initially submitted for use in the small employer market. (B) After the initial filings of health benefit plans intended for use in the small employer market have been approved, this certification form will only be due annually, no later than March 1 of each calendar year; however, if the geographic service areas change at anytime, a new certification form defining the new service areas will be due no later than 30 days prior to the change. (2) A prototype certification form (Form Number 2055 CERT PROTOTYPES/MRKT) shall accompany each policy form filing and/or certification filing. The certification form shall: (A) state whether the carrier plans to use prototype policy forms; (B) specify the prototype forms, if any, that the health carrier plans to use in the small employer market; and (C) specify, describe and explain any variance contained in the forms being filed from the provisions contained in the prototype forms. If a health carrier, other than an HMO, utilizes the prototype forms and only uses variations permitted in the prescribed and/or adopted forms, the certification with the description of the variations will suffice and policy forms will not be required to be submitted for review and approval. Approval of the use of the prototype forms based on the certification and the description of the variations, will be communicated via an approval letter. (D) define the market in which the form will be used, such as, for use only in the small employer market or in all employer markets or other markets. The certification form shall also specify whether the carrier will be marketing the form in geographic services areas previously submitted or will be marketing in new geographic service areas. If marketing in new geographic service areas, the filing shall include the certification (Form Number 2055 CERT GEOG) which defines the new geographic service areas. (c) Each health carrier, other than an HMO, shall use a policy shell format for any group or individual health benefit plan form used to provide a health benefit plan in the small employer market. To expedite the review and approval process, all group and individual health benefit plan form filings (excluding HMO filings which are covered in subsection (d) of this section) shall be submitted as follows: (1) a group policy face page or individual policy face page, as applicable; (2) the group certificate page or individual data page, as applicable; (3) the toll free number and complaint notice page, as required by Chapter 1, Subchapter E, of this title (relating to Notice of Policyholder Complaint Procedure); (4) the table of contents; (5) insert pages for the general provisions; (6) insert pages for the required provisions and any optional provisions, if elected and as applicable; (7) for the standard benefit forms, which include the Preventive and Primary Care Benefit Plan, the In-Hospital Benefit Plan, and the Standard Health Benefit Plan, an insert of the required benefits section that includes the schedule of benefits, definitions, benefits provided, alternate cost containment and preferred provider provisions, if any, exclusions and limitations, continuation/conversion provisions, coordination of benefits, and riders; (8) for small employer health benefit plans that are not one of the standard benefit forms, an insert page for the benefits section of the health benefit plan, including, but not limited to, schedule of benefits, definitions, benefits provided, alternate cost containment and preferred provider provisions, if any, exclusions and limitations, continuation/conversion provisions, coordination of benefits, and riders. (9) insert pages for any amendments, applications, enrollment forms, or other form filings which comprise part of the contract; (10) insert pages for any additional forms required under Chapter 3, Subchapter F, of this title (relating to Group Health Insurance Mandatory Conversion Privilege); (11) insert pages for any required Outline of Coverage for individual products; (12) any additional form filings and documentation as outlined in Chapter 3, Subchapter A of this title (relating to Requirements for Filing of Policy Forms, Riders, Amendments and Endorsements for Life, Accident and Health Insurance and Annuities) and Chapter 3, Subchapter G of this title (relating to Plain Language Requirements for Health Benefit Policies); (13) the certifications required under this section and any other rating information required under sec.26.10 of this title (relating to Establishment of Classes of Business) and sec.26.11 of this chapter (relating to Restrictions Relating to Premium Rates); and (14) the rate schedule applicable to any individual health benefit plan, as required by sec.3.3(d) of this title (relating to Specific Additional Submission Requirements); (d) In addition to subsections (a) and (b) of this section, the following provisions apply to each health carrier that is an HMO. The HMO shall submit health benefit plan forms for use in the small employer market in accordance with the following: (1) Any HMO group or individual agreement shall address and include all required provisions of the Insurance Code, Chapter 26. Such agreement shall be in compliance with any other applicable provisions of the Insurance Code. In addition, the agreement shall comply with the provisions of Subchapter F of Chapter 11 of this title (relating to Evidence of Coverage) where those provisions are not in conflict with Insurance Code, Chapter 26. (2) The filing shall include any alternate page(s) to the agreement or the schedule of benefits and any alternate schedule(s) of benefit. (3) The filing shall include any additional riders, amendments, applications, enrollment forms, or other forms and any other required documentation outlined in Chapter 11, Subchapter F, of this title (relating to Evidence of Coverage). (4) The filing shall include any applicable requirements of of Chapter 11, Subchapter D, of this title (relating to Regulatory Requirements for an HMO Subsequent to Issuance of a Certificate of Authority), and of Chapter 11, Subchapter F, of this title (relating to Evidence of Coverage). (5) The filing shall include any rider forms that will be used with health benefit plans offered to small employers. The rider forms, if developed subsequent to approval of the agreement, shall be submitted with an explanation of the market in which the forms will be used. All rider forms shall comply with the Insurance Code, Article 20A.09 and applicable provisions of Chapter 11, Subchapter D, of this title (relating to Regulatory Requirements for an HMO Subsequent to Issuance of a Certificate of Authority ) and of Chapter 11, Subchapter F, of this title (relating to Evidence of Coverage). sec.26.27 Appendix. The forms adopted and incorporated in sec.26.2 (relating to Forms adopted and Incorporated by Reference) are included in the Appendix to these sections. The following index refers to the form number, its description, and the figure number in the appendix. (Editor's Note: The forms are being published on the following pages.) [graphics] This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 9, 1993. TRD-9000428 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: December 30, 1993 Proposal publication date: October 29, 1993 For further information, please call: (512) 463-6327 TITLE 30. ENVIRONMENTAL QUALITY Part I. Texas Natural Resource Conservation Commission Chapter 336. Radiation Rules Source Material Recovery and Radiation Substance Disposal 30 TAC sec.sec.336.1-336.6 The Texas Natural Resource Conservation Commission (TNRCC) adopts amendments to sec.sec.336.1-336.4 and new sec.336.5 and sec.336.6, concerning disposal of radioactive substances and source material recovery and processing. Section 336.5 and sec.336.6 are adopted with changes as proposed in the October 26, 1993, issue of the Texas Register (18 TexReg 7459). Sections 336.1-336.4 are adopted without changes and will not be republished. Adoption of these sections is necessary in order to implement the provisions of Senate Bill 1043, 73rd Legislature, Act of June 19, 1993, Chapter 992, 1993 Texas Session Laws 4343, which transferred jurisdiction over source material recovery and processing operations from the Texas Department of Health (TDH) to TNRCC effective September 1, 1993. Pursuant to this transfer of jurisdiction, the amended and new sections will provide TNRCC with rules and standards with which to implement its authority under the Texas Radiation Control Act (TRCA), Chapter 401, Texas Health and Safety Code (Vernon, 1993), by the adoption of certain portions of the Texas Regulations for Control of Radiation (TRCR), formerly promulgated and enforced by TDH. In addition, this adoption is necessary for the State of Texas to maintain "agreement state" status with the United States Nuclear Regulatory Commission (NRC), as it incorporates revised standards mandated by NRC for all agreement states. The TNRCC's radiation rules reflect changes made in response to comments received from the regulated community as well as changes necessitated by typographic and publication errors. The latter category of errors were corrected by Correction of Error published in the November 19, 1993, issue of the Texas Register (18 TexReg 8624). In response to a commenter who recommended a change to sec.336.5(a)(1) (relating to Amended TRCR Part 12 Fee Schedules), TNRCC has deleted entries in the schedule of fees set forth in that section which might be construed to assess fees for activities outside the jurisdiction of TNRCC. In the proposed form, published in the October 26, 1993, issue of the Texas Register (18 TexReg 7459), the table found at sec.336.5(a)(1) was reprinted from the original Texas Regulations for Control of Radiation (TRCR) Part 12, with fee amounts adjusted to reflect amendments adopted by TDH in the July 2, 1993, issue of the Texas Register (18 TexReg 4314). In that same July 2, 1993, amendment, TDH removed fee listings for activities over which jurisdiction had been transferred to TNRCC, and the TNRCC's October 26, 1993, proposal restored those listings with the original fees intact. The intent of TNRCC in drafting the October 26, 1993, proposal was to maintain a single source for licensees to refer to in determining fees which were applicable to their activities, regardless of which agency assessed the fees. It was not the intent of TNRCC to assert jurisdiction over TDH-assessed fees. It became apparent after reviewing the comments provided that such an approach caused, rather than cured, confusion among licensees. Therefore, all entries in the fee table in sec.336.5(a)(1) assessed only by TDH have been removed. Several typographic and publication errors were discovered upon review of the proposed sections in the October 26, 1993, issue of the Texas Register (18 TexReg 7459). These corrections, as published in the November 19, 1993, issue of the Texas Register (18 TexReg 8624), are included in this adoption. The adopted sections establish regulations for radioactive substance disposal and source material recovery by incorporation of the applicable portions of TDH's Texas Regulations for Control of Radiation (TRCR). TNRCC has initiated a separate rulemaking effort which will republish, within Title 30, Texas Administrative Code (TAC) Chapter 336, the detailed radiation rules that specifically fall under TNRCC's jurisdiction. These detailed rules, which will be in Texas Register format (as opposed to the format used for the TRCR) , will consolidate all TNRCC rules concerning radioactive substance regulation into Title 30, TAC Chapter 336, and will enable the regulated community to refer to a single source for TNRCC regulations. The following comments were received at a public hearing held on November 12, 1993, and in writing on November 24 and 29, 1993, concerning the proposed amendments and new sections as published in the October 26, 1993 and November 19, 1993, issues of the Texas Register (18 TexReg 7459 and 18 TexReg 8624). Representatives of the law firm of McGinnis, Lochridge, & Kilgore and the environmental consulting firm of Eggleston, Holmes & Associates appeared at the November 12, 1993, public hearing and presented verbal comments. Eggleston, Holmes & Associates also submitted written comments. The law firm of Henry, Lowerre & Taylor submitted written comments. One commenter drew a comparison between the NRC rule, Title 10 Code of Federal Regulations (CFR) Part 20, and TRCR Part 21 (relating to Standards for Protection Against Radiation), adopted by reference in sec.336.1 of this title (relating to Adoption of Texas Regulations for the Control of Radiation) with amendments in sec.336.6 of this title (relating to TRCR Part 21 Amendments Regarding Waste Management). The commenter pointed out that TRCR Part 21, as amended and adopted by TDH in the July 2, 1993, issue of the Texas Register (18 TexReg 4300), appears to have a large number of omissions and modifications when compared with the federal 10 CFR Part 20 rule which render the Texas rule unsuitable for TNRCC adoption. The commenter suggested that TNRCC should consider adopting the federal rule 10 CFR Part 20. The commenter listed the following discrepancies between the federal 10 CFR Part 20 and TRCR Part 21: the stated scope of TRCR Part 21 excludes waste disposal, which is an integral part of 10 CFR Part 20, and use of the term "disposal" is omitted from some sections of Part 21; the definitions of terms given in TRCR Part 21 exclude a large fraction of those given in 10 CFR Part 20; certain entire sections of 10 CFR Part 20 have been omitted from TRCR Part 21, such as the units of radiation dose and radioactivity (which are important in fulfilling its recordkeeping and reporting requirements), and sections on implementation and provisions for technical specification changes; wording changes have been made in TRCR Part 21 which make some of its requirements stricter than those of 10 CFR Part 20; and the units required to be used in recordkeeping by TRCR Part 21 are not the same as those specified in 10 CFR Part 20. TNRCC agrees with some of the observations made by the commenter, but disagrees with the suggestion that the federal 10 CFR Part 20 be adopted in lieu of TRCR Part 21. TNRCC must first point out that the NRC has promulgated certain minimum standards which must be adopted by all agreement states in order to demonstrate compatibility with the federal program. State programs for regulating radioactive substances must be equivalent to or more stringent than NRC's standards in order to maintain compatibility. The State of Texas has, as the commenter noted, elected to make certain aspects of its program more stringent than federal requirements. In part, the differences between the federal and the state rules are explainable by the fact that TDH has traditionally split the content of 10 CFR Part 20 over two different parts of its rules, TRCR Parts 11 and 21. Further, in its July 2, 1993, (18 TexReg 4300) amendment, TDH made a number of changes in the scope of TRCR Part 21 to limit it to areas within the statutory jurisdiction of TDH (by omitting portions related to disposal) and, in some instances, modified the language to make it stricter than in the federal rule. To abandon TRCR Parts 11 and 21 in favor of adopting by reference the federal rule would undermine the existing state program for regulation of radioactive substances. TNRCC's present adoption has added sections to the TDH rule (sec.336.6(a)-(f) (relating to TRCR Part 21 Amendments Regarding Waste Management)) which restore the disposal related sections that were deleted by the TDH in its July 2, 1993, adoption. The missing definitions are included in the amended sec.336.1(1) of this title (relating to TRCR Part 11). Thus, TNRCC finds that this section as originally proposed and adopted herein is adequate for implementing this agency's authority. Several commenters noted that the Memorandum of Understanding (MOU) attached to TRCR Part 21 is outdated and needs either repeal or substantial revision. The commenters expressed concern that TNRCC and TDH have not prepared the MOU required by the Texas Health and Safety Code, sec.401.414, that would clarify the division of responsibilities between the two agencies under the amended Texas Radiation Control Act (the Texas Health and Safety Code, Chapter 401). TNRCC agrees that the MOU presently found in TRCR Part 21 is outdated. In fact, a number of Memoranda of Understanding between TDH, the Texas Water Commission, and the Railroad Commission of Texas concerning the regulation of radioactive materials will require revision in order to accurately implement the statutory changes recently effected by the legislature. Efforts are presently underway between the various agencies to revise the Memoranda of Understanding involving the regulation of radioactive materials. A commenter stated that a provision in sec.336.6(b) of this title (relating to TRCR Part 21 Amendments Regarding Waste Management) includes an absolute requirement that the land authorized for burial of radioactive material must be owned by a government entity, whereas 10 CFR Part 20 provides for a waiver of this requirement. The commenter also noted that TRCR Part 21 addresses areas which are not in TNRCC's jurisdiction and includes sections and terms which are not in 10 CFR Part 20. This commenter also suggested that TNRCC should adopt the federal rules in lieu of TRCR Part 21. For the reasons previously outlined, TNRCC does not agree with the recommendation that it adopt the federal rules by reference in lieu of the TRCR as modified to address source material recovery and disposal of radioactive substances. With respect to the comment about the proposed rule addressing areas outside TNRCC jurisdiction, sec.336.1 (relating to Adoption of Texas Regulations for the Control of Radiation) specifically states that only "those portions of the Texas Regulations for Control of Radiation (TRCR) which relate to the disposal of radioactive substances and source material recovery and processing, including the disposal of by-product material" are adopted by reference. As was stated in the preamble of the proposed rule (18 TexReg 7459), TNRCC has no intention of performing or enforcing any activity that is outside its jurisdiction. One commenter noted that since TDH is continually amending its TRCR, TNRCC's adoption of the TRCR by reference is likely to cause misunderstandings within the regulated community, especially in performing licensee inspections, concerning the agency authority and the sections of the rules applicable to each agency. The commenter mentioned that such industries as uranium miners, radio- pharmaceutical companies, and waste processors and handlers are likely to have problems and confusion in deciding which agency's authority and what parts of the same rules apply for their facility during an inspection. This will increase the burden on a licensee in following two sets of regulations. TNRCC agrees that confusion may result with operators who have licenses with both TDH and TNRCC. However, TNRCC has no jurisdiction to regulate the routine operations of such entities as radio-pharmaceutical companies or waste processors or handlers. There are a limited number of licensees that have licenses issued by both TDH and TNRCC, where such a misunderstanding might be a possibility. Furthermore, sec.336.1 (relating to Adoption of Texas Regulations for the Control of Radiation) specifically states that only "those portions of the Texas Regulations for Control of Radiation (TRCR) which relate to the disposal of radioactive substances and source material recovery and processing, including the disposal of by-product material" are adopted by reference. Additionally, TNRCC believes that the version of a rule adopted by reference is the version in effect at the time of adoption. Without TNRCC action, the text of the adopted TRCR will remain intact regardless of subsequent amendments by TDH to its radiation rules. The same commenter stated that the proposed sec.336.5 (relating to Amended TRCR Part 12 Fee Schedules) seems to adopt the TDH fees in a wholesale manner, including such items as fees for accelerators, bone mineral analyzers, decontamination services, eye applicators, fine leak testing devices, fixed multi-beam teletherapy devices, fluorescence x-ray devices, etc., which clearly do not lie under TNRCC jurisdiction. The commenter queried whether TNRCC intends to collect fees from these entities and suggested that the final rule should only include those portions of the fees that fall under TNRCC jurisdiction. As stated in the preamble of the proposed rule, TNRCC has no intention of enforcing or collecting a fee from any entity for any activity that is outside TNRCC's jurisdiction. TNRCC agrees, however, that sec.336.5(a)(1) (relating to Amended TRCR Part 12 Fee Schedules) as proposed in the October 26, 1993, issue of the Texas Register (18 TexReg 7459) contained entries for which the TNRCC has no jurisdiction to assess fees. Therefore, those entries have been deleted from the version adopted. The same commenter noted that in adopting fees under sec.336.5, TNRCC does not cite any references to its studies that may have been done to estimate the actual or anticipated TNRCC program administration costs. It was suggested that the rules should make such a reference as a basis in proposing the fees as part of the rule. The TNRCC's radiation program has just recently been established on a firm organizational basis to manage the expanded jurisdiction acquired by TNRCC effective September 1, 1993. An analysis of the anticipated program costs has been initiated. Pending completion of this analysis, TNRCC relies on TDH's information based on years of experience in fee recovery and expenditure tracking, which are both considered in its new TRCR Part 12, adopted in July 2, 1993, issue of the Texas Register (18 TexReg 4314). TNRCC is adopting the applicable parts of the new TRCR Part 12 with the modifications indicated in sec.336.5(a)-(c) of this title (relating to Amended TRCR Part 12 Fee Schedules) as well as the change to sec.336.5(a)(1) (relating to Table of Annual Fees) printed in this adoption. The fees collected hereunder will be deposited in a newly-created Radioactive Substance Fee Fund (created by the Texas Health and Safety Code, sec.401.412(f)), which will thus provide for a proper accounting of the collected funds. The same commenter suggested that since uranium mining companies will receive specific TNRCC licenses issued pursuant to 30 TAC Chapter 336, the new rules should state that the previously granted authorizations from the Texas Water Commission (now TNRCC) under other statutes, such as Texas Water Code, Chapter 26 (relating to surface discharge and irrigation permits) and Chapter 27 (relating to Underground Injection Control), will remain unaffected. The commenter suggested adding a statement in the rule clarifying that these other rules continue to exist and are not superseded by the TNRCC's amended radiation rules. TNRCC confirms that permits issued under its rules pursuant to the Texas Health and Safety Code or the Texas Water Code will remain in full effect and are unaffected by the amended radiation rules. The statutes governing radioactive materials, wastewater discharges, solid waste, and underground injection control offer a comprehensive scheme for the regulation of entities falling under TNRCC scrutiny in the various programs affected. TNRCC feels that sufficient clarification exists in TNRCC rules concerning these areas that regulatory overlap should not be a cause for concern. Nothing in the amended radiation rules (30 TAC Chapter 336) affects TNRCC authorization of activities regulated outside the radioactive materials program. Therefore, no separate statement to that effect within the amended radiation rules (30 TAC Chapter 336) is required. With respect to sec.336.5(b) of this title (relating to Amended TRCR Part 12 Fee Schedules), one commenter stated that it is improper to consolidate activities associated with by-product material along with those associated with naturally-occurring radioactive material (NORM) because of potentially different characteristics and regulatory requirements. The commenter also expressed concern that sec.336.6(b) of this title (relating TRCR Part 21 Amendments Regarding Waste Management), appears to be in error in the restatement of TDH's past rule and that the last sentence could now be read to apply only to disposal in the manner authorized under sec.336.6(b) of this title. With respect to the comment about the NORM disposal fees, the adopted rule adds fees for the category of NORM disposal to a table in sec.336.5(b) that also lists fees for uranium recovery facilities. The adopted rule restores annual fees for NORM disposal which were previously in the same table in TRCR Part 12.22, but which were deleted by TDH in its July 2, 1993, amendments of TRCR Part 12 (18 TexReg 4314). Inclusion of annual fees for NORM disposal in an existing table with annual fees for uranium recovery is a matter of convenience and does not imply any consolidation of regulatory activities. With respect to the comment about sec.336.6(b) of this title (relating to TRCR Part 21 Amendments Regarding Waste Management), this section restores the exact language of the previous TDH rule TRCR Part 21.302 (revision dated April 1986), which was deleted by TDH in its July 2, 1993, amendments of TRCR Part 21 (18 TexReg 4300). Section 336.6(b) does not change the substantive rules applicable under the former TRCR sec.21.302, but merely renumbers it to correspond with the numbering system employed by TDH when TRCR Part 21 was amended (18 TexReg 4300). The amendments and new sections are adopted under the Texas Water Code, sec.5.103 and sec.5.105; and Texas Health and Safety Code, sec.401.412, which give TNRCC authority to adopt rules and establish minimum standards for the disposal of radioactive substances and recovery and processing of source material. The amendments and new sections implement the requirements Texas Health and Safety Code, Chapter 401, Subchapters A and C-K; and Texas Health and Safety Code, Chapter 402, Subchapters F and H. sec.336.5. Amended TRCR Part 12 Fee Schedules. (a) Section 12. 21. Schedule of Annual Fees for Radioactive Material Licenses. (1) Table of Annual Fees. [graphic] (b) Section 12.22. Schedule of Fees for Uranium Recovery Facility and NORM Disposal Licenses. (1) Table of annual fees. [graphic] (2) Adjustments to annual fees. (A) If additional noncontiguous uranium recovery facility sites are authorized under the same license, the appropriate annual fee shall be increased by 20% for each additional site. (B) Facilities proposing to conduct or conducting irrigation or surface discharge shall pay the following additional annual fee for each irrigation plot or surface discharge point: [graphic] (3) One-Time Fee Adjustments. For the addition of the following items listed after an Environmental Assessment has been completed on a facility, a one-time fee corresponding to the item shall be paid: (A) New In Situ Uranium Recovery Facility-$64,415; (B) In Situ Wellfield on Noncontiguous Property-$64,415; (C) In Situ Satellite-$64,415; (D) Wellfield on Contiguous Property-$25,765; (E) Irrigation/Surface Discharge-$6,175; (F) Non-Vacuum Dryer-$45, 630. (4) Interpretive Rules and Definitions. (A) "Contiguous" properties are those locations adjacent to an existing licensed or permitted area. (B) A "new in situ uranium recovery facility" is one that has one or more wellfields, an ion exchange uranium recovery facility, and facilities for concentrating yellowcake. (C) "Renewal year" means the year of the expiration date of the license (and therefore the year in which renewal application is required). (D) Once facilities under a license have entered restoration or reclamation, the appropriate annual fee will continue to be the restoration/reclamation annual fee (subject to adjustment for non-contiguous sites) without regard to whether the license term is subject to renewal. (E) The one-time fee adjustment shall apply only to those facilities not licensed as of the effective date of these rules. (F) "Post-closure" means the time period after which closure activities have been completed by the licensee and prior to transfer of land ownership of tailings disposal sites to the State of Texas or the United States of America and termination of the license. (c) Section 12.23. Schedule of Fees for Radioactive Waste Disposal Site License. (1) An application for a radioactive waste disposal site license pursuant to TRCR Part 45 shall be accompanied by a fee of $415,000. This fee will cover agency costs for processing the application. The application fee may be paid in two equal installments. The first payment shall be made upon submission of the application and the balance shall be paid one calendar year later. (2) An applicant shall submit an annual fee for the actual costs incurred by the agency for hearings associated with a radioactive waste disposal site application. Payment shall be made within 90 days following the date of invoice. (3) A holder of a radioactive waste disposal site license shall submit an annual fee for the services received. This fee shall recover for the State of Texas the actual expenses arising from the regulatory activities associated with the license. Payment shall be made within 90 days following the date of invoice. sec.336.6. TRCR Part 21 Amendments Regarding Waste Management. (a) Section 21.1001. General Requirements. (1) Unless otherwise exempted, a licensee shall transfer waste for disposal, discharge, or decay licensed material only: (A) by transfer to an authorized recipient as provided in sec.21.1006 or in TRCR Parts 41, 43, 44, 45, or 46, or to the United States Department of Energy; or (B) by decay in storage; or (C) by release in effluents within the limits in TRCR, sec.21.301; or (D) as authorized pursuant to TRCR, sec.21.302, sec.21.1003, sec.21. 1004, or sec.21.1304, or subsection (b) of this section (relating to Section 21. 1008. Method of Obtaining approval of Proposed Disposal Procedures). (2) A person shall be specifically licensed to receive waste containing licensed material from other persons for: (A) treatment prior to disposal; or (B) treatment by incineration; or (C) decay in storage; or (D) disposal at a land disposal facility licensed pursuant to Part 45 of these rules; or (E) storage until transferred to a storage or disposal facility authorized to receive the waste. (b) Section 21.1008. Method of Obtaining Approval of Proposed Disposal Procedures. Any person may apply to the agency for approval of proposed procedures to dispose of radioactive material in a manner not otherwise authorized in this part. Each application shall include a description of the radioactive material involved, including the quantities and kinds of radioactive material and the levels of radioactivity involved, and the proposed manner and conditions of disposal. The application shall also include an analysis and evaluation of pertinent information as to the nature of the environment, including topographical, geological, meteorological, and hydrological characteristics; usage of ground and surface waters in the general area; the nature and location of other potentially affected facilities; and procedures to be observed to minimize the risk of unexpected or hazardous exposures (ALARA). The agency will not approve any application for a license to receive radioactive material from other persons for disposal on land not owned by a State or the Federal Government. (c) Section 21.1009. Disposal by Burial in Soil. No licensee shall dispose of radioactive material by burial in soil except as specifically approved by the agency pursuant to subsection (b) of this section (relating to Section 21.1008. Method of Obtaining Approval of Proposed Disposal Procedures) or TRCR, sec.21.1304. (d) Section 21.1010. Disposal by Release Into Septic Tanks. No licensee shall discharge radioactive material into a septic tank system except as specifically approved by the agency pursuant to TRCR, sec.21.302 and subsection (b) of this section (relating to Section 21.1008. Method of Obtaining Approval of Proposed Disposal Procedures). (e) Section 21. 1011. Texas Department of Health (TDH) Inspection of Shipments of Waste. Each shipment of waste to a licensed land disposal facility in Texas shall be inspected by TDH prior to shipment. The waste shipper shall notify TDH no less than 72 hours prior to the scheduled shipment of the intent to transport waste to the licensed land disposal facility. (f) Section 21.1302. Soil and Vegetation Contamination Limits. (1) No licensee shall possess, receive, use, or transfer radioactive material in such a manner as to cause contamination of soil or vegetation in unrestricted areas, to the extent that the contamination exceeds, on a dry weight basis, the concentration limits specified in: (A) TRCR, Appendix 21-I; or (B) the effluent concentrations in Appendix 21-B, Table III, with the units changed from uCi/ml to uCi/gm, for radionuclides not specified in TRCR<< Appendix 21-I or subsection (f)(3) of this section. (2) Where combinations of radionuclides are involved, the sum of the ratios between the concentrations present and the limits specified in paragraph (1) of this subsection shall not exceed one. (3) Notwithstanding the limits imposed by paragraph (1) of this subsection, the concentration of radium-226 or radium-228 in soil averaged over any 100 square meters shall not exceed the background level by more than: (A) 5 pCi/gm, averaged over the first 15 centimeters of soil below the surface; and (B) 15 pCi/gm, averaged over 15 centimeter thick layers of soil more than 15 centimeters below the surface. 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-9333285 Mary Ruth Holder Director, Legal Division Texas Natural Resource Conservation Commission Effective date: December 29, 1993 Proposal publication date: October 26, 1993 For further information, please call: (512) 463-8069 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part II. Texas Parks and Wildlife Department Chapter 57. Fisheries Mussels and Clams 31 TAC sec.57.156, sec.57.158 The Texas Parks and Wildlife Department (Commission) in a regularly scheduled public hearing held August 26, 1993, adopts new sec.57.156 and sec.57. 158, concerning the harvest of mussels and clams from public water without changes, to the proposed text as published in July 23, 1993, issue of the Texas Register (18 TexReg 4845). The new proclamation will provide the only regulations issued under the authority of Chapter 78 of the Parks and Wildlife Code. Regulations concerning freshwater mussels will remain essentially the same as those found in 31 TAC sec.65.80. As a result of the passage of House Bill 2052 during the last legislative session all mussel and clam harvest, including size and limits, will be regulated under the Texas Parks and Wildlife Code, Chapter 78. Currently, they are regulated under Chapter 61 in the Statewide Hunting and Fishing Proclamation. The new mussel and clam proclamation is issued under the authority of Chapter 78. The new rules are essential the same as those found in sec.65.80, and delineate: bag, possession, and size limits for harvest of mussels and clams: devices, means, and methods that may be used in the harvest of mussels and clams; and seasons, times, and places where and when mussels and clams may be harvested. No comments were received relative to the new regulations. The new rules are adopted under Texas Parks and Wildlife Code, Chapter 78, which provides the Texas Parks and Wildlife Department (Commission) with authority to regulate taking, possession, purchase, and sale of mussels and clams. 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 10, 1993. TRD-9333478 Paul M. Shinkawa Director, Legal Services Texas Parks and Wildlife Department Effective date: December 31, 1993 Proposal publication date: July 23, 1993 For further information, please call: 1-800-792-1112, Ext. 4433 or (512) 389- 4433 Chapter 61. Design and Construction Guidelines for Administration of Local and Water Conservation Funds Project 31 TAC sec.61.131 The Texas Parks and Wildlife Department (Commission) adopts an amendment to sec.61.131, concerning Guidelines for Administration of Local and Water Conservation Funds Project, with changes to the proposed text as published in the July 23, 1993, issue of the Texas Register (18 TexReg 4847). The amendment to sec.61.131 was in advertently submitted combined with the amendment to sec.61.121 in the Proposed Action Stage. These two amendments are now being submitted separately as required. The rules are necessary to allow for the efficient administration of the grant programs noted and to take into account the creation of the Texas Recreation and Parks account established by acts of the Texas Legislature, 73rd Regular Session. Section 61.131 re-adopts on a temporary basis sec.61.81 and sec.61.121 for administration of the Texas Recreation and Parks Account, and adopts the procedural guide for the Land and Water Conservation Fund, and guidelines for administration of the Texas Local Parks, Recreation and Open Space Fund projects by reference. The new rules as proposed were presented to the Texas Parks and Wildlife Commission in its August 26, 1993, public hearing. No comments were received from the publication of the proposed rules in the July 23, 1993, issue of the Texas Register. No comments were received from the public about the proposed rules at the August 26, 1993, Texas Parks and Wildlife Commission public hearing. The amendment is adopted under the Texas Parks and Wildlife Code, sec.24.005 (as amended by Acts of the Texas Legislature, 73rd Regular Session), which provides that in establishing the program of grants under this section, the department shall adopts rules and regulations for grant assistance. sec.61.131. Policy. It is the Texas Parks and Wildlife Commission policy that the executive director shall administer local projects in accord with the following guidelines with interpretation of intent to be made to provide the greatest number of outdoor recreational opportunities for Texas in accord with priorities of the Texas Outdoor Recreation Plan. In keeping with this policy, local projects will not be approved from both the Texas Local Parks, Recreation, and Open Space Fund and the Federal Land and Water Conservation Fund Program unless extraordinary circumstances dictate that high priority public needs will not be met without the full or partial funding of both programs. (1)-(2) (No change.) (3) Section 61.81 of this title (relating to Application Procedures), the procedural guide for Land and Water Conservation Fund Program, is adopted by reference for the Texas Recreation and Parks Account for the period September 1, 1993-September 1, 1994. Copies may be obtained from Texas Parks and Wildlife Department, Grants Program, 4200 Smith School Road, Austin, Texas 78744, (512) 389-4948. (4) Section 61.121 of this title (relating to Policy), guidelines for administration of Local Land and Water Conservation Fund Program and guidelines for administration of Texas Local Parks, Recreation, and Open Space Fund projects are adopted by reference for the Texas Recreation and Parks Account for the period of September 1, 1993-September 1, 1994. Copies may be obtained from Texas Parks and Wildlife Department, Grants Program, 4200 Smith School Road, Austin, Texas 78744, (512) 389-4948. 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 10, 1993. TRD-9333477 Paul M. Shinkawa Director, Legal Services Texas Parks and Wildlife Department Effective date: December 31, 1993 Proposal publication date: July 23, 1993 For further information, please call: 1 (800) 792-1112, Ext. 4433 or (512) 389- 4433 TITLE 34. PUBLIC FINANCE Part VIII. State Depository Board Chapter 171. Collateral Transactions 34 TAC sec.171.1 The Texas State Depository Board adopts an amendment to sec.171.1, concerning the deposit of security collateral by financial institutions designated as state depositories without changes to the proposed text as published in the August 27, 1993, issue of the Texas Register (18 TexReg 5720). In the past it has been difficult for the Texas State Treasury to obtain a reliable price for certain securities. The amendment will facilitate the ongoing repricing of securities which are deemed acceptable by the Texas State Depository Board as collateral for state funds. The amendment clarifies what securities are acceptable as collateral for state funds. No comments were received regarding adoption of the amendment. The amendment is adopted under sec.404.013 the Texas Government Code, which authorizes the State Depository Board to adopt rules governing the establishment and conduct of state depositories. 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 10, 1993. TRD-9333456 Susan D. Albers General Counsel State Depository Board Effective date: December 31, 1993 Proposal publication date: August 27, 1993 For further information, please call: (512) 463-5971 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 4. Medicaid Programs-Children and Pregnant Women Eligibility Requirements 40 TAC sec.4.1006 The Texas Department of Human Services (DHS) adopts an amendment to sec.4. 1006, concerning requirements for application, in its Medicaid Programs-Children and Pregnant Women Program rule chapter. The amendment is adopted without changes to the proposed text as published in the November 9, 1993, issue of the Texas Register (18 TexReg 8170). The justification for the amendment is to eliminate sanctions against pregnant women who fail to comply with child support requirements, until the end of their pregnancy. The amendment will function by ensuring that needy pregnant women receive the prenatal care they need. No comments were received regarding adoption of the amendment. The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority to administer public and medical assistance programs and under Texas Civil Statutes, Article 4413(502), sec.16, which provide the Health and Human Services Commission with the authority to administer federal medical assistance funds. The amendment implements the Human Resources Code, sec.22.001 and sec.32.040. 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 10, 1993. TRD-9333455 Nancy Murphy Liaison Texas Department of Human Services Effective date: January 1, 1994 Proposal publication date: November 9, 1993 For further information, please call: (512) 450-3765 Chapter 19. Long-Term Care Nursing-Facility Requirements for Licensure and Medicaid Certification Subchapter S. Reimbursement Methodology for Nursing Facilities 40 TAC sec.19.1807 The Texas Department of Human Services (DHS) adopts an amendment to sec.19. 1807, concerning rate-setting methodology, in its Long-Term Care Nursing Facility Requirements. The amendment is adopted without changes to the proposed text as published in the November 9, 1993, issue of the Texas Register (18 TexReg 8172). The purpose for the amendment is to delete the experimental pediatric care reimbursement class. The only provider operating a pediatric nursing facility has asked to withdraw from participation and has returned to the standard nursing facility reimbursement class. DHS foresees no reason to maintain the pediatric class. The amendment will function by eliminating an obsolete, experimental reimbursement class and retaining the standard reimbursement class. No comments were received regarding adoption of the amendment. The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority to administer public and medical assistance programs and under Texas Civil Statutes, Article 4413 (502), sec.16, which provide the Health and Human Services Commission with the authority to administer federal medical assistance funds. The amendment implements the Human Resources Code, sec.32.028 and sec.32.029. 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 10, 1993. TRD-9333354 Nancy Murphy Liaison Texas Department of Human Services Effective date: January 1, 1994 Proposal publication date: November 9, 1993 For further information, please call: (512) 450-3765 Part II. Texas Rehabilitation Commission Chapter 101. General Rules 40 TAC sec.101.11 The Texas Rehabilitation Commission adopts an amendment to sec.101.11, concerning general rules, without changes to the proposed text as publish in the November 9, 1993, issue of the Texas Register (18 TexReg 8182). The amendment to this section and the adoption of new Chapter 104, Informal and Formal Appeals by Applicants/Clients of Decisions by a Rehabilitation Counselor or Agency Official, clarify the policy and procedures with regard to protests and appeals and applicant and client hearings. The section adopts by reference TRC APPM 9, Protest and Appeal, which sets forth the Commission policy and procedure with regard to protests and appeals. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Human Resources Code, 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 purpose 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-9333286 William B. Churchill Assistant Commissioner for Legal Services Texas Rehabilitation Commission Effective date: December 29, 1993 Proposal publication date: November 9, 1993 For further information, please call: (512) 483-4050 Chapter 104. Informal and Formal Appeals by Applicants/Clients of Decisions by a Rehabilitation Counselor or Agency Official 40 TAC sec.sec.104.1-104.8 The Texas Rehabilitation Commission adopts new sec.sec.104.1-104.8, concerning information and formal appeals by applicants/clients of decisions by a rehabilitation counselor or agency official. Section 104.6 is adopted with changes to the proposed text as published in the November 9, 1993, issue of the Texas Register (18 TexReg 8182). Sections 104.1-104.5, 104.7-104. 8 are adopted without changes and will not be republished. The new rules are adopted to comply with the 1992 and 1993 amendments to the Rehabilitation Act of 1973 and 34 Code of Federal Regulation sec.361.48. Section 104.6(b) is changed from 30 days to 20 days in order to comply with the federal regulations. The new sections set forth the substantive procedural rules governing applicant and client hearings before the Commission. No comments were received regarding adoption of the new sections. The new sections are adopted under the Texas Human Resources Code, 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 purpose of this chapter. sec.104.6. Action by the Commissioner. (a) The Commissioner cannot delegate the responsibility for making any final Commission decision to any other officer or employee of the Commission. (b) Within 20 days of the mailing of the IHO's decision, the Commissioner will decide whether or not to formally review the decision by studying the decision and the official case record. (1) If the Commission decides not to formally review the IHO's decision, the decision of the IHO becomes the final Commission decision, and the Commissioner will issue an order affirming the decision of the IHO. (2) If the Commissioner decides to formally review the IHO's decision, written notice of this decision will be sent to the Appellant by certified mail, return receipt requested. (3) The parties will then have 15 days from the date the notice that the Commissioner has decided to review the IHO's decision is mailed by the Inquiries and Hearings Unit to submit any additional relevant evidence. (4) Within 30 days of the mailing of notice of intent to review the IHO's decision, the Commissioner shall make a final decision and provide a full report to all parties in writing of that decision, including the findings and grounds for the decision. (c) The Commissioner's decision to review the IHO's decision will be based on the following standards of view. (1) The Commissioner may not overturn nor modify a decision of an IHO, or part of a decision, that supports the position of the Appellant unless the Commissioner concludes, based on clear and convincing evidence, that the decision of the IHO is clearly, based on clear and convincing evidence, that the decision of the IHO is clearly erroneous on the basis of being contrary to federal or state law, including policy. (2) Review shall include all applicable laws, rules, regulations, policies, and procedures. (3) Review may be made on all questions of law, fact and written policy and procedure. (4) Review may result in affirming the decision of the IHO in whole or in part of reversing or remanding the case to the IHO for further proceedings. (5) Review may result in reversing or remanding the decision of the IHO when the record of the hearing or decision contains any one or more of the following, and the decision is found to be: (A) in violation of constitutional, statutory, regulatory, or written policy provisions; (B) in excess of the statutory authority of the Commission; (C) made upon unlawful procedure; (D) affected by other error of law, regulation, or written policy; (E) not reasonably supported by the evidence; or (F) arbitrary, capricious, or characterized by abuse of or clearly unwarranted exercise of discretion. (6) When none of the conditions in paragraph (5) of this subsection above are present in the record of the hearing or the decision, review shall result in affirming the decision of the IHO. 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-9333287 William B. Churchill Assistant Commissioner for Legal Services Texas Rehabilitation Commission Effective date: December 29, 1993 Proposal publication date: November 9, 1993 For further information, please call: (512) 483-4050