PROPOSED RULES 
 
 Before an agency may permanently adopt a new or amended section or repeal an 
existing section, a proposal detailing the action must be published in the  
Texas Register at least 30 days before action is taken. The 30-day time period 
gives interested persons an opportunity to review and make oral or written 
comments on the section. Also, in the case of substantive action, a public 
hearing must be granted if requested by at least 25 persons, a governmental 
subdivision or agency, or an association having at least 25 members. 
  Symbology in proposed amendments. New language added to an existing section is 
indicated by the use of  bold text. [Brackets] indicate deletion of existing 
material within a section. 
 
   
  TITLE 10. COMMUNITY DEVELOPMENT 
 Part I. Texas Department of Housing and Community Affairs 
  Chapter 1. Administration 
  
  Subchapter A. General Policies and Procedures 
 
  10 TAC sec.1.2 
 
  The Texas Department of Housing and Community Affairs (TDHCA) proposes an 
amendment to sec.1.2, concerning TDHCA's complaint system. The proposed 
amendment changes the person to whom complaints are submitted. Complaints 
concerning the Texas Community Development Program and TDHCA's administration of 
the Community Services Block Grant are governed by TDHCA's Block Grant Complaint 
System at sec.1.11 and sec.1.13. 
 Hershal E. Blankenship, executive assistant, has determined that for the first 
five-year period the section is in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
section. 
 Mr. Blankenship also has determined that for each year of the first five years 
the section is in effect the public benefit anticipated as a result of enforcing 
the section will be more efficient disposition of complaints. There will be no 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the section as proposed. 
 Comments on the proposal may be submitted to Anne Osburn Paddock, Deputy 
General Counsel, 811 Barton Springs, Austin, Texas 78704, within 30 days of the 
date of this publication. 
 The amendment is proposed under Texas Government Code,  s2306.066, which 
provides Texas Department of Housing and Community Affairs with the authority to 
develop procedures by which complaints are filed with the department. 
 
 
  sec.1.2. Department Complaint System. 
 
  (a)-(b) (No change.) 
   
  (c) Procedures. A person who has a written complaint may submit such complaint 
to the department's <nl>deputy executive director<ol> [internal auditor] or to 
any employee of the department for submission to the <nl>deputy executive 
director or his designee<ol> [internal auditor]. 
 
  (1) The <nl>deputy executive director or his designee <ol> [internal auditor] 
assigns a control number to the complaint, reviews the complaint, investigates, 
or causes an investigation to be completed, and submits the department's 
findings to the executive director of the department. 
   
  (2) The <nl>executive director or his designee<ol> shall either notify the 
complainant of the resolution of the complaint within 15 business days after the 
date the <nl>deputy executive director<ol> [internal auditor] received the 
complaint, or notify the complainant, within such period, of the date the 
complaint can be resolved. 
   
  (3) The <nl>executive director or his designee<ol> shall notify the 
complainant of the status of the complaint at least quarterly and until the 
final disposition of the complaint unless the notice would jeopardize an 
undercover investigation. 
   
  (4) <nl>An<ol> [The internal auditor shall maintain an] information file about 
each complaint <nl>shall be maintained. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 6, 1994. 
 TRD-9435761 
  Henry Flores 
 Executive Director 
 Texas Department of Housing and Community Affairs 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 475-3948 
         
               
  Subchapter B. Block Grants 
 
  10 TAC sec.1.13 
 
  The Texas Department of Housing and Community Affairs (TDHCA) proposes an 
amendment to sec.1.13, concerning the formal complaint system established to 
investigate complaints received about programs funded by federal block grants 
administered by TDHCA. The proposed amendment changes the person to whom 
complaints are submitted. 
 Hershal E. Blankenship, executive assistant, has determined that for the first 
five-year period the section is in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
section. 
 Mr. Blankenship also has determined that for each year of the first five years 
the section is in effect the public benefit anticipated as a result of enforcing 
the section will be more efficient disposition of complaints. There will be no 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the section as proposed. 
 Comments on the proposal may be submitted to Anne Osburn Paddock, Deputy 
General Counsel, 811 Barton Springs, Austin, Texas 78704, within 30 days of the 
date of this publication. 
 The amendment is proposed under Texas Government Code, Chapter 2105, which 
provides Texas Department of Housing and Community Affairs with the authority to 
maintain a procedure for investigating complaints about programs funded by 
federal block grants administered by the department. 
 
 
  sec.1.13. Complaint System. 
 
  (a) A recipient who has a comment or complaint about the quality of services 
funded by a block grant administered by the department may submit such comment 
or complaint in writing to the <nl>deputy executive director <ol> [internal 
auditor] of the department. 
   
  (b) The <nl>deputy executive director<ol> [internal auditor] shall transmit a 
copy of the comment or complaint to the entity which is the subject of the 
comment or compliant within two calendar days for comments or complaints arising 
under the Texas Community Development Program or within five calendar days for 
all other block grant programs after the date the comment or complaint was 
received by the <nl>deputy executive director<ol> [internal auditor]. 
   
  (c) The entity shall complete its investigation of the comment or complaint 
and submit its findings, in writing to the [internal auditor] <nl>deputy 
executive director<ol> within seven business days for Texas Community 
Development Program comments or complaints or 20 calendar days for all other 
entities after the date the entity received the comment or complaint or notify 
the <nl>deputy executive director <ol> [internal auditor] within such period, of 
the date the investigation can be completed. 
   
  (d) The executive director of the department <nl>or his designee<ol> shall 
notify the complainant of the department's and the entity's findings before the 
15th business day for the Texas Community Development Program comments or 
complaints or the 31st calendar day for all other comments or complaints after 
the date the comment or complaint was received by the  <nl>deputy executive 
director<ol> [internal auditor] or the executive director <nl>or his 
designee<ol> shall notify the complainant, within such period, of the date the 
investigation can be completed. 
   
  (e) The executive director of the department <nl>or his designee<ol> shall 
notify the complainant of the status of the complaint at least quarterly and 
until the final disposition of the complaint unless the notice would jeopardize 
an undercover investigation. 
   
  (f) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 6, 1994. 
 TRD-9435760 
  Henry Flores 
 Executive Director 
 Texas Department of Housing and Community Affairs 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 475-3948 
         
                   
  TITLE 16. ECONOMIC REGULATION 
 Part IV. Texas Department of Licensing and Regulation 
  Chapter 65. Boiler Division 
  
  16 TAC sec.sec.65.20, 65.50, 65.65, 65.70, 65.80 
 
  The Texas Department of Licensing and Regulation proposes new sec.65.65 and 
amendments to sec.sec.65.20, 65.50, 65.70, and 65.80, concerning the 
certification of boilers. The new section defines the purpose, method of 
reporting, and reimbursement of expenses of the Boiler Board. Section 65.20 
clarifies the time requirement for a boiler inspection, sec.65.50 allows for the 
acceptance of certain data to be electronically transmitted from inspection 
agencies to this department, sec.65.70 clarifies the requirement for a boiler 
inspection prior to commencement of service, and sec.65.80 provides for a boiler 
certificate of operation fee increase for boiler inspections performed by an 
authorized inspector and clarifies the commission late renewal fee. 
 George Bynog, chief boiler inspector, Policies and Standards Division, has 
determined there will be fiscal implications as a result of enforcing or 
administering sec.65.80. The effect on state government for the first five year 
period this section is in effect will be an increase in revenue of $428,925 for 
fiscal years 1994-1998. There will be no fiscal implications on local 
govornment. 
 Mr. Bynog also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be the clarification of existing rules and the state will 
recover the cost of enforcement and administration as required by statute for 
the inspection of boilers. There will be a fiscal effect on persons, some of 
which will be an undeterminable amount of small business owners, who are 
required to comply with sec.65.80 as proposed. The cost of compliance will be an 
additional $15 per certificate of operation issued as a result of a boiler 
inspection performed by an authorized inspector. 
 Comments on the proposal may be submitted to George Bynog, Chief Boiler 
Inspector, Policies and Standards Division, Texas Department of Licensing and 
Regulation, P.O. Box 12157, Austin, Texas 78711, (512) 463-2904. 
 The amendments are proposed under the Health and Safety Code, Chapter 755, 
which provides the Texas Department of Licensing and Regulation with the 
authority to promulgate and enforce a code of rules in keeping with standard 
usage for the construction, inspection, installation, use, maintenance, repair, 
alternation, and operation of boilers. 
 The statute affected by the rules is the Health and Safety Code, Chapter 755. 
 
 
  sec.65.20. Licensing/Certification/Registration Requirements. 
 
  (a) (No change.) 
   
  (b) Notice to owners or operators of boilers. 
 
  (1) All boilers, unless otherwise exempted, shall be prepared for <nl>initial 
inspection,<ol> regular inspections, or hydrostatic tests, whenever necessary, 
by the owner or operator when notified by the chief inspector, deputy inspector, 
or authorized inspector. 
   
  (2)-(3) (No change.) 
     
  (c) Registration. 
 
  (1) The procedure for an owner or operator to follow in registering a boiler 
with the department shall be: 
 
  (A) at the time of purchase<nl>,<ol> [or] installation, <nl>or prior to 
commencing service <ol>, the owner or operator shall notify the inspection 
agency that the time for assigning the state number and the initial inspection 
is imminent. The inspection agency will register the boiler within 30 days of 
the owner or operator notification; 
   
  (B)-(D) (No change.) 
     
  (2)-(3) (No change.) 
     
  (d)-(i) (No change.) 
 
     
  sec.65.50. Reporting Requirements. 
 
  (a) (No change.) 
   
  (b) Risks-new, canceled, or suspended. 
 
  (1) All inspection agencies shall promptly notify the chief inspector, or Form 
NB-4, of all boiler risks written, as well as all boiler risks rejected, 
canceled, not renewed, or suspended because of unsafe conditions. 
<nl>Notification may be made electronically or manually on Form NB-4 or other 
forms provided by the department.<ol> This notification shall list, by Texas 
boiler number, all objects affected by the notice. 
   
  (2) (No change.) 
     
  (c)-(g) (No change.) 
 
     
  sec.65.65. Boiler Board. 
 
  (a) The purpose of the Boiler Board is to advise the commissioner in the 
adoption of definitions and rules relating to the safe construction, 
installation, inspection, operating limits, alteration, and repair of boilers 
and their appurtenances. 
   
  (b) Recommendations of the board will be transmitted to the commissioner by 
the chairman of the board through the director of policies and standards. 
   
  (c) Expenses reimbursed to board members shall be limited to authorized 
expenses incurred while on board business and travelling to from board meetings. 
The least expensive method of travel should be used. 
   
  (d) Expenses paid to board members shall be limited to those allowed by the 
<nl>State of Texas Travel Allowance Guide<ol> and Texas Department of Licensing 
and Regulation policies governing travel allowances for employees. 
 
     
  sec.65.70. Responsibilities of the Licensee/Certificate Holder/Registrant. 
 
  (a) New installations. 
 
  (1)-(2) (No change.) 
   
  (3) New boilers, including reinstalled boilers, shall be installed in 
accordance with the requirements of the latest revision of the applicable 
section of the ASME code and these rules. <nl>These boilers shall be inspected 
prior to commencing service. 
   
  (4) (No change.) 
     
  (b)-(e) (No change.) 
   
  (f) Clearance. 
 
  (1) (No change.) 
   
  (2) A minimum clearance of two feet shall be maintained on all sides of a 
boiler except portable boilers [and potable water heaters]. A minimum of four 
feet shall be maintained between top of a boiler and roof joist. A minimum of 
one foot shall be maintained between the bottom of scotch-type boilers and the 
foundation or floor. 
     
  (g)-(h) (No change.) 
 
     
  sec.65.80. Fees. 
 
  (a) Certificate/inspection fees. 
 
  (1) Inspection by authorized inspector. The owner or operator or his/her agent 
shall make a <nl>$30<ol> [$15] payment for the certificate of operation fee. 
   
  (2)-(3) (No change.) 
     
  (b) (No change.) 
   
  (c) Commission fees. 
 
  (1) (No change.) 
   
  (2) New-$25, renewal-$10, late renewal- <nl>additional<ol> $12.50  <nl>(total 
$22.50). 
   
  (3)-(4) (No change.) 
     
  (d) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 3, 1994. 
 TRD-9435656 
  Jack W. Garison 
 Executive Director 
 Texas Department of Licensing and Regulation 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 463-2904 
         
                 
  TITLE 22. EXAMINING BOARD 
 Part XXVI. Texas Board of Licensure for Professional Medical Physicists 
  Chapter 601. Medical Physicists 
  
  22 TAC sec.sec.601.2, 601.7, 601.14-601.16 
 
  The Texas Board of Licensure for Professional Medical Physicists (Board) with 
the approval of the Texas Department of Health (department) proposes amendments 
to existing sec.sec.601.2, 601.7, and 601.14-601.16, concerning licensed medical 
physicists and temporary licensed medical physicists. 
 The amendments will update existing sections and implement the provisions of 
Senate Bill 1062 and 674, 73rd Legislature Regular Session, 1993, relating to 
the regulation of medical physicists. 
 The amendments add a new definition; expand the full-time work experience date 
for licensure without examination; add a passing score for the examination taken 
by out-of-state applicants; define deceptive advertising; and add a criminal 
conviction related to the profession of medical physicists. 
 Ms. Jeanette Hilsabeck, executive secretary, has determined that for the first 
five year period the section will be in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section as proposed. 
 Ms. Hilsabeck also has determined that for each year of the first five years 
the rule as proposed is in effect the public benefits anticipated as a result of 
enforcing the amendment as proposed will be to implement new legislation and 
clarify existing sections. There is no anticipated cost or effect on small or 
large businesses. There is no anticipated cost to persons who are required to 
comply with the amendment as proposed. There will be no effect in local 
employment. 
 Comments on the proposal may be submitted to Jeanette Hilsabeck, Texas Board of 
Licensure for Professional Medical Physicists, 1100 West 49th Street, Austin, 
Texas 78756-3183, (512) 834-6655. Public comments will be accepted for 30 days 
after publication of the sections in the Texas Register. 
 The amendments are proposed under Texas Civil Statutes, Article 4512n, sec.11, 
which require the Texas Board of Licensure for Professional Medical Physicists 
to adopt rules, with the approval of the Texas Department of Health, that are 
reasonably necessary for the proper performance of its duties under the Texas 
Medical Physics Practice Act (Act). The sections implement the Texas Medical 
Physics Practice Act, Texas Civil Statutes, Article 4512n. 
 
 
  sec.601.2. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise. 
   
   <nl>Upper division semester hour credits-Third-year level or above (junior, 
senior or graduate) course work completed from an accredited college or 
university. 
 
   
  sec.601.7. Licensure Without Examination. 
 
  (a) The Texas Board of Licensure for Professional Medical Physicists (board) 
may issue an annual license without an examination to a person who, before 
September 1, 1994: 
 
  (1)-(2) (No Change.) 
   
  (3) has demonstrated to the board's satisfaction the completion of at least 
two years of full-time work experience between <nl>January 1, 1988 <ol> 
[September 1, 1986], and <nl>December 31, 1992 <ol> [August 31, 1991], in the 
medical physics specialty for which application is made; and 
   
  (4) has <nl>full-time equivalent <ol> work experience which includes six 
additional months <nl>between January 1, 1988 and December 31, 1992,<ol> for 
each additional specialty. 
     
  (b) The board may issue an annual license without an examination to a person 
who, before September 1, 1994: 
 
  (1)-(2) (No change.) 
   
  (3) has demonstrated to the board's satisfaction the completion of at least 10 
years of full-time work experience between <nl>January 1, 1981 <ol> [September 
1, 1979], and <nl>December 31, 1992 <ol> [August 31, 1991], in the medical 
physics specialty for which application is made; and 
   
  (4) has <nl>full-time equivalent <ol> work experience which includes six 
additional months <nl>between January 1, 1981 and December 31, 1992,<ol> for 
each additional specialty. 
     
  (c) (No change.) 
   
  (d) The board may issue an annual license to a person who prior to September 
1, 1994: 
 
  (1) -(2) (No change.) 
   
  (3) has demonstrated to the board's satisfaction a working knowledge of Texas 
rules pertaining to the license specialty requested by: 
 
  (A) (No change.) 
   
  (B) successful completion of an examination offered by the board. <nl>The 
passing score for successful completion will be 80%.<ol> [A list of the Texas 
rules is available from the board upon request.] 
       
  (e)-(g) (No change.) 
 
     
  sec.601.14. Code of Ethics. 
 
  (a)-(l) (No change.) 
   
  <nl>(m) A licensed medical physicist shall make a reasonable attempt to notify 
each contractor, employer or client of the name, mailing address, and telephone 
number of the board for the purpose of directing complaints to the board by 
providing notification: 
 
  <nl>(1) on each written contract for services of a licensee; or 
   
  <nl>(2) on a sign prominently displayed in the primary place of business of 
each licensee; or 
   
  <nl>(3)  in a bill for service provided by a licensee to a contractor, 
employer, client or third party. 
     
  <nl>(n) A licensee shall not use advertising that is false, misleading, or 
deceptive or that is not readily subject to verification. 
 
  <nl>(1) False, misleading, or deceptive advertising or advertising that is not 
readily subject to verification includes advertising that: 
 
  <nl>(A) makes a material misrepresentation of fact or omits a fact necessary 
to make the statement as a whole not materially misleading; 
   
  <nl>(B) makes a representation likely to create an unjustified expectation 
about the results of a health care service or procedure; 
   
  <nl>(C) compares a health care professional's service with another health care 
professional's services unless the comparison can be factually substantiated; 
   
  <nl>(D) contains a testimonial; 
   
  <nl>(E)  causes confusion or misunderstanding as to the credentials, 
education, or licensure of a health care professional; 
   
  <nl>(F) advertises or represents that health care insurance deductibles or 
copayments may be waived or are not applicable to health care services to be 
provided if the deductibles or copayments are required; 
   
  <nl>(G) advertises or represents that the benefits of a health benefit plan 
will be accepted as full payment when deductibles or copayments are required; 
   
  <nl>(H) makes a representation that is designed to take advantage of the fears 
or emotions of a particularly susceptible type of patient; or 
   
  <nl>(I) advertises or represents in the use of a professional name a title or 
professional identification that is expressly or commonly reserved to or used by 
another profession or professional. 
     
  <nl>(2) A "health care professional" includes a licensed medical physicist, 
temporary licensed medical physicist, or any other person licensed, certified, 
or registered by the state in a health-related profession. 
 
       
  sec.601.15. Criminal Backgrounds. 
 
  (a)-(b) (No change.) 
   
  (c) The following felonies and misdemeanors directly relate to a license of a 
medical physicist because these criminal offenses indicate an inability or a 
tendency to be unable to properly engage in the practice of medical physics: 
 
  (1)-(8) (No change.) 
   
  (9) an offense under various titles of the Texas Penal Code: 
 
  (A)-(D) (No change.) 
   
  (E)  offenses of attempting or conspiring to commit any of the offenses in 
this subsection (Title 4); [and] 
   
  <nl>(F) insurance claim fraud under the Penal Code, sec.32.55; and 
     
  (10) (No change.) 
     
  (d)-(e) (No change.) 
 
     
  sec.601.16. Violations, Complaints, and Subsequent Actions. 
 
  (a) -(d) (No change.) 
   
  (e) Investigation of complaints. 
 
  (1)-(6)  (No change.) 
   
  <nl>(7) If an investigation is done, the investigator shall always attempt to 
contact the complainant to discuss the complaint. 
     
  (f)-(i) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435702 
  Susan K. Steeg 
 General Counsel, Office of General Counsel 
 Texas Department of Health 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 834-6628 
         
                 
  TITLE 25. HEALTH SERVICES 
 Part I. Texas Department of Health 
  Chapter 14. County Indigent Health Care Program 
  
  Subchapter B. Determining Eligibility 
 
  The Texas Department of Health (department) proposes amendments to sec.14.103 
and sec.14.104, the repeal of sec.14.109, and amendments to sec.14.203 and 
sec.14.204, concerning the County Indigent Health Care Program. The sections 
cover household determinations; income; maximum monthly income standards; 
payments for mandatory services; and services and payment liability, 
limitations, and options. The justification for these amendments is to comply 
with Health and Safety Code, Chapter 61, the Indigent Health Care and Treatment 
Act, which specifies that the standards and procedures must be consistent with 
the standards and procedures used to determine eligibility in the AFDC-Medicaid 
program. 
 Section 14.103 is amended to delete the language to "a male parent" that was 
adopted in error. Section 14.104 language is changed to state that the monthly 
maximum income standards shall correspond to the current AFDC recognizable needs 
amounts for the household's size. Currently the actual dollar amounts used for 
the maximum monthly income standards are published in  s14.109 which is being 
repealed, therefore the actual dollar amounts will no longer be included. The 
current actual dollar amounts correspond to the current AFDC recognizable needs 
amounts. Section 14.203 is amended to correspond to new payment methodology in 
Medicaid. Section 14.204 is amended to delete a reference to Medicare that is in 
error. 
 Gary Bego, health care financing budget director, has determined that for the 
first five-year period that the proposed sections are in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the sections. 
 Mr. Bego also has determined that for each year of the first five years that 
the sections are in effect the public benefit anticipated as a result of 
enforcing the sections will be compliance with state law. There will be no 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the proposed sections and no impact on local 
employment. 
 Comments on the proposed amendments and repeal may be submitted to Bonnie 
Magers, Program Specialist, Indigent Health Care, Texas Department of Health, 
1100 West 49th Street, Austin, Texas 78756-3168, (512) 338-6458. Ms. Magers will 
accept comments for 30 days after publication of the proposed amendments in the 
Texas Register. 
   
  25 TAC sec.14.103, sec.14.104 
 
  The amendments are proposed under the Health and Safety Code, Chapter 61, and 
the Human Resources Code, Chapters 22 and 32. The authority to administer the 
County Indigent Health Care Program was transferred to the Texas Department of 
Health under Chapter 15, sec.1.07, Acts of the 72nd Legislature, First Called 
Session (1991). 
 
 
  sec.14.103. Household Determinations. 
 
  (a)-(f) (No change.) 
   
  (g) Eligibility staff must consider the following persons as a one-person 
household: 
 
  (1)-(3) (No change.) 
   
  (4) a [male] parent, ineligible for Medicaid, whose spouse and/or minor 
children are Medicaid eligible. 
     
  (h)-(k) (No change.) 
 
     
  sec.14.104. Income. 
 
  (a)-(c) (No change.) 
   
  (d) Net income test and deductions. The net income test is used to determine 
eligibility. 
 
  (1) Net income test. Net monthly income is gross monthly income minus 
allowable deductions. A household is eligible if its net monthly income, after 
rounding down cents, is not more than the maximum income limit as 
<nl>corresponds to the current AFDC recognizable needs amounts<ol> [specified in 
sec.14.109 of this title (relating to Monthly Maximum Countable Income 
Standards)] for the household's size. All households must pass the net income 
test. 
   
  (2) (No change.) 
     
  (e) Budgeting. 
 
  (1)-(3)  (No change.) 
   
  (4) How to budget stepparent, spouse, or legal parent income. The policy in 
this paragraph only applies to family units that include a stepparent, spouse, 
or one or both parents who are excluded from a Medicaid group. Eligibility staff 
must: 
 
  (A)-(B) (No change.) 
   
  (C)  deduct from the spouse's or parent's income, computed in subparagraph (B) 
of this paragraph, an amount equal to the maximum income limit for the Medicaid 
household's size as  <nl>corresponds to the current AFDC recognizable needs 
amounts <ol> [specified in sec.14.109 of this title (relating to Monthly Maximum 
Countable Income Standards)]; and 
   
  (D) (No change.) 
     
  (5)  How to budget the income of the alien's sponsor. Eligibility staff must 
consider as unearned income available to the alien's household all the sponsor's 
and sponsor's spouse's gross countable income(s) after subtracting the following 
deductions: 
 
  (A) (No change.) 
   
  (B) an amount equal to the maximum income limit for the sponsor's family size 
as <nl>corresponds to the current AFDC recognizable needs amounts<ol> [specified 
in sec.14.109 of this title (relating to Monthly Maximum Countable Income 
Standards)]. Include all members of the household who the sponsor claims or 
could claim as tax dependents; 
   
  (C)-(D) (No change.) 
       
  (f) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435790 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 338-6458 
         
           
  25 TAC sec.14.109 
 
  (Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Department 
of Health or in the Texas Register office, Room 245, James Earl Rudder Building, 
1019 Brazos Street, Austin.) 
   
  The repeal is proposed under the Health and Safety Code, Chapter 61, and the 
Human Resources Code, Chapters 22 and 32. The authority to administer the County 
Indigent Health Care Program was transferred to the Texas Department of Health 
under Chapter 15, sec.1.07, Acts of the 72nd Legislature, First Called Session 
(1991). 
 
 
  sec.14.109. Monthly Maximum Countable Income Standards. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435791 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 338-6458 
         
           
  Subchapter C. Providing Services 
 
  25 TAC sec.14.203, sec.14.204 
 
  The amendments are proposed under the Health and Safety Code, Chapter 61, and 
the Human Resources Code, Chapters 22 and 32. The authority to administer the 
County Indigent Health Care Program was transferred to the Texas Department of 
Health under Chapter 15, sec.1.07, Acts of the 72nd Legislature, First Called 
Session (1991). 
 
 
  sec.14.203. Payments for Mandatory Services. 
 
  (a)-(b) (No change.) 
   
  (c) The payment standards for the individual mandatory service are <nl>as 
follows.<ol>[:] 
 
  (1) (No change.) 
   
  (2)  Physician, laboratory, and x-ray services. The payment standard for the 
procedures <nl>the department <ol> [DHS] identifies as the most commonly 
performed procedures in the Medicaid Program is the [average] Texas Medicaid 
payment for the procedure. 
 
  (A) If providers perform a procedure that <nl>the department<ol> [DHS] has not 
identified as a common Medicaid procedure, counties may use either the: 
 
  (i) (No change.) 
   
  (ii) [average] Medicaid payment <nl>standard<ol> for the uncommon procedure. 
The county must contact <nl>the department <ol> [DHS] for payment information 
for uncommon procedures. 
     
  (B) (No change.) 
     
  (3)  (No change.) 
   
  (4) Family planning clinic services. The reimbursement rate is the [current] 
fee established by <nl>the department<ol> [DHS] for the <nl>Medicaid<ol> Family 
Planning Program. 
   
  (5) (No change.) 
   
  (6) Rural health clinic (RHC) services. The reimbursement rate is the 
[current] fee established by <nl>the department<ol> [DHS] for the Medicaid 
program. 
     
  (d) (No change.) 
 
     
  sec.14.204. Services and Payment Liability, Limitations, and Options. 
 
  (a) This section defines county liability. Counties are liable for payment for 
mandatory services unless an eligible county resident: 
 
  (1) -(2) (No change.) 
   
  (3) is eligible for Medicaid [or Medicare] benefits or would be eligible if 
<nl>he/she<ol> [he] applied. 
     
  (b)-(h)  (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435792 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 338-6458 
         
               Chapter 143. Medical Radiologic Technologists 
  
  25 TAC sec.sec.143.4, 143.7, 143.10, 143.11, 143.14 
 
  The Texas Department of Health (department) proposes amendments to 
sec.sec.143.4, 143.7, 143.10, 143.11, and 143.14, concerning the certification 
of medical radiologic technologists. 
 The proposed amendments allow a technologist to apply for late renewal up to 
one year after certificate expiration; allow a technologist to convert a general 
certificate to a limited certificate; allow more continuing education credits to 
be earned in the "indirectly" related category; and allow disciplinary action to 
be taken against technologists who allow their names or credentials to be used 
by other persons or who use another person's name or credentials. 
 Donna Hardin, program administrator, has determined that for the first five 
year period the sections will be in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
sections as proposed. 
 Ms. Hardin has determined that for each year of the first five years the 
sections as proposed are in effect, the public benefits anticipated as a result 
of enforcing the sections as proposed will be to update and clarify existing 
sections. There is no anticipated cost or effect on small or large businesses. 
 The possible economic cost to persons who are required to comply with the 
sections as proposed will be the payment of the late renewal fee of $50 each 
time the medical radiologic technologist renews between 91 days and one year 
after the certificate expires. There will be no effect in local employment. 
 Comments on the proposal may be submitted to Donna Hardin, Professional 
Licensing and Certification Division, 1100 West 49th Street, Austin, Texas 
78756-3183, (512) 834-6617. Public comments will be accepted for 30 days after 
publication of the sections in the Texas Register. 
 The amendments are proposed under Texas Civil Statutes, Article 4512m, sec.2. 
05, which provide the Texas Board of Health with the authority to adopt rules 
concerning the regulation and certification of medical radiologic technologists; 
and the Health and Safety Code, sec.12.001 which provides the Texas Board of 
Health with authority to adopt rules for the performance of every duty imposed 
by law on the Texas Board of Health, the Texas Department of Health, and the 
commissioner of health. The sections implement the Medical Radiologic 
Technologist Certification Act, Texas Civil Statutes, Article 4512m. 
 
 
  sec.143.4. Fees. 
 
  (a) (No change.) 
   
  (b) The schedule of fees for general or limited certification as a medical 
radiologic technologist <nl>is<ol> [are] as follows: 
 
  (1)-(3) (No change.) 
   
  (4) <nl>one to 90-day <ol> [60-day] late <nl>renewal <ol> fee-$25 (plus all 
unpaid renewal fees when the certificate is renewed within <nl>90<ol> [60] days 
of expiration); 
   
  <nl>(5) 91-day to one year late renewal fee-$50 (plus all unpaid renewal fees 
when the certificate is renewed more than 90 days after expiration but not more 
than one year after expiration); and 
   
  <nl>(6)<ol>[(5)] certificate and/or identification card replacement fee-$10. 
     
  (c)-(g) (No change.) 
 
     
  sec.143.7. Types of Certificates and Applicant Eligibility. 
 
  (a)  General. The purpose of this section is to set out the types of 
certificates issued and the qualifications of applicants for certification as a 
medical radiologic technologist (MRT) or limited medical radiologic technologist 
(LMRT). 
 
  (1) The <nl>Texas Department of Health (department)<ol> [department] shall 
issue general certificates, limited certificates, or temporary certificates 
(general or limited). 
   
  (2)-(6)  (No change.) 
     
  (b)-(e) (No change.) 
   
  (f) Limited medical radiologic technologist. To qualify for a limited 
certificate, an applicant shall meet the requirements in paragraph (4) of this 
subsection and subsection (d) of this section. 
 
  (1)-(3) (No change.) 
   
  (4) To qualify for a certificate as a limited medical radiologic technologist 
an applicant must provide documentary evidence satisfactory to the department of 
the following: 
 
  (A) the successful completion of a limited course of study as set out in the 
sec.143.9 of this title (relating to Standards for the Approval of Curricula and 
Instructors) and the successful completion of the appropriate limited 
examination in accordance with sec.143.8 of this title (relating to 
Examinations); [or] 
   
  (B) current licensure or registration as a LMRT [licensed medical radiologic 
technologist] by another state, District of Columbia, or territory of the United 
States of America whose requirements are more stringent than or substantially 
equal to the requirements for the Texas limited certificate at the time of 
application to the department<nl>; or <ol>[. ] 
   
  (C) current general certification as a MRT issued by the department. The MRT 
must surrender the general certificate and submit a written request for a 
limited certificate indicating the limited categories requested. The request 
shall be postmarked on or before the certificate expiration date and shall be 
accompanied by the general certificate and the certificate and/or identification 
card replacement fee. 
       
  (g)-(i)  (No change.) 
 
     
  sec.143.10. Certificate Issuance, Renewals and Late Renewals. 
 
  (a)  Purpose. The purpose of this section is to set out the rules for issuing 
certificates (limited or general) and temporary certificates (limited or 
general) and certificate renewal. 
   
  (b) Issuance of certificates. 
 
  (1) The <nl>Texas Department of Health (department)<ol> [department] shall 
send each applicant whose application has been approved for a general or limited 
certificate a form to complete and return with the prorated certification fee. 
Failure to pay the fee requested within 60 days of the date of origin approval 
letter shall result in the application being invalidated. 
   
  (2)-(3) (No change.) 
     
  (c)-(e) (No change.) 
   
  (f) Late renewals. 
 
  (1) A person whose certificate has expired for not more than <nl>one year<ol> 
[60 days] may renew the certificate by submitting to the department the 
<nl>completed <ol> renewal form, <nl>completed <ol> continuing education report 
forms (if required), [and] the renewal fee<nl>, and the late renewal fee<ol> 
[This subsection shall not apply to a person whose certificate expired due to 
failure to complete the continuing education requirements]. 
 
  <nl>(A) If the certificate has been expired for 90 days or less, the person 
may renew the certificate by paying the one to 90-day late renewal fee. 
   
  <nl>(B) If the certificate has been expired for over 90 days but not more than 
one year, the person may renew the certificate by paying the 91-day to one year 
late renewal fee. 
   
  <nl>(C) The person must comply with the continuing education requirements for 
renewal as set out in  s143.11 of this title (relating to Continuing Education 
Requirements) before the late renewal is effective. 
     
  (2) The late renewal is effective if it is mailed to the department or 
personally delivered by the MRT or LMRT or his/her agent to the department not 
more than <nl>one year<ol> [60 days] after certificate expiration. If mailed, 
the postmark date shall be considered the date of mailing. A postage-metered 
date is not considered as a postmark. A certificate not renewed within <nl>one 
year<ol> [60 days] after expiration cannot be renewed. 
   
  (3) A person whose certificate has expired may not administer a radiologic 
procedure during the <nl>one-year<ol> [60-day] period in violation of the Act. 
<nl>A person may not use a title that implies certification while the 
certificate is expired. 
   
  <nl>(4)  A person whose certificate has been expired for more than one year 
may apply for another certificate by meeting the then-current requirements of 
the Act and this chapter which apply to all new applicants. 
     
  (g)-(h)  (No change.) 
   
  [(i) Reinstatement or reapplication. 
 
  [(1) If a person fails to renew his certificate or fails to complete and send 
proof of the completion of the continuing education requirements on or before 
the expiration of the certificate, the person may reinstate or reapply for a 
certificate only in accordance with this subsection. 
   
  [(2) On or before one year after the expiration of the person's biennial 
certificate, the person may file an application for reinstatement of the 
certificate on official department forms and pay the application processing fee. 
 
  [(A) The applicant shall be entitled to a certificate of the same type as that 
which expired based upon the applicant's previously accepted qualifications 
except as provided otherwise in this subsection. 
   
  [(B) The applicant shall pay the prorated certification fee determined by the 
department. 
   
  [(C)  Applicants under this subsection shall be required to successfully 
complete the NMTCB examination, the appropriate examination of the ARRT, or the 
ARCRT examination after the department has received a complete application. 
 
  [(i) The applicant shall comply with subsection (g) of sec.143.8 of this title 
(relating to Examinations). 
   
  [(ii) The examination requirement of this subsection shall not be waived for 
persons who were nationally certified on September 1, 1987; are nationally 
certified by ARRT, NMTCB, or ARCRT; have previously completed the required 
examination, qualified by reciprocity; or qualified under any other provision of 
this chapter. 
     
  [(D) From the time of expiration of a person's certificate until reinstatement 
of the certificate, the person may not administer a radiologic procedure in 
violation of the Act. 
     
  [(3) A person whose biennial certificate has been expired for at least one 
year may apply for another certificate by meeting the then-current requirements 
of the Act and this chapter which apply to all new applicants.] 
 
       
  sec.143.11 Continuing Education Requirements. 
 
  (a)-(b) (No change.) 
   
  (c) Content. All continuing education activities should provide for the 
professional growth of the technologist. 
 
  (1)-(2) (No change.) 
   
  (3) No more than <nl>50%<ol> [25%] of the required number of hours may be 
satisfied by completing or participating in learning activities which are 
indirectly related to radiologic technology. For the purpose of the section, 
indirectly related topics include, but are not limited to, <nl>patient care,<ol> 
computer science, computer literacy, introduction to computers or computer 
software, physics, human behavioral sciences, mathematics, communication skills, 
public speaking, technical writing, management, administration, accounting, 
ethics, adult education, medical sciences, and health sciences. Other courses 
may be accepted for credit provided there is a demonstrated benefit to patient 
care. 
     
  (d)-(g) (No change.) 
   
  (h) Activities unacceptable as continuing education. The department shall not 
grant credit for: 
 
  (1)-(5) (No change.) 
   
  (6)  learning activities indirectly related to radiologic technology which 
exceed <nl>50%<ol> [25%] of the contact hour requirement as set out in 
subsection (c)(3) of this section; 
   
  (7)-(11) (No change.) 
     
  (j)-(k)  (No change.) 
   
  (i) Failure to complete the required continuing education. 
 
  (1) An MRT or LMRT who has failed to complete the requirements for continuing 
education may be granted a 120-day certificate as described in sec.143.10 
(e)<nl>(7)<ol>[(8)] of this title (relating to Certificates, Renewals, and Late 
Renewals). The 120-day extension is the maximum that shall be granted and there 
will be no exceptions, nor may an additional extension period. 
   
  (2) (No change.) 
   
  (3) An MRT or LMRT who has not corrected the deficiency by the expiration date 
of the 120-day certificate shall be considered as non-compliant with the renewal 
requirements <nl>and may no longer perform radiologic procedures<ol>. 
   
  <nl>(4) The person may renew late under sec.143.10(f) of this title. 
 
       
  sec.143.14 Violations and Subsequent Actions. 
 
  (a)  Disciplinary action. The <nl>Texas Department of Health (department) <ol> 
[department] may suspend, revoke, or not renew any certificate for any of the 
following reasons: 
 
  (1)-(34) (No change.) 
   
  (35) assaulting any person in connection with the practice of medical 
radiologic technologist or in the workplace; [or] 
   
  (36) intentionally or knowingly offering to pay or agreeing to accept any 
remuneration directly or indirectly, overtly or covertly, in cash or in kind, to 
or from any person, firm, association, of persons, partnerships, or corporation 
for securing or soliciting patients or patronage. The provisions of the Health 
and Safety Code, sec.161.091, relating to the prohibition of illegal 
remuneration apply to MRTs and LMRTs<nl>; or 
   
  <nl>(37) using or permitting or allowing the use of any MRT's or LMRT's name, 
certificate, or professional credentials in a way that the person knows, or with 
the exercise of reasonable diligence should know: 
 
  <nl>(A) violates the Act, this chapter or department rule relating to the 
performance of radiologic procedures; or 
   
  <nl>(B) is fraudulent, deceitful or misleading. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435703 
  Susan K. Steeg 
 General Counsel, Office of General Counsel 
 Texas Department of Health 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 834-6617 
         
                 Chapter 265. General Sanitation 
  
  Standards for Public Restroom Facilities 
 
  25 TAC sec.sec.265.121-265.123 
 
  The Texas Department of Health (department) proposes new  ssec.265.121-
265.123, concerning restroom facilities in places where the public congregates. 
The sections will cover general provisions, definitions, and minimum standards 
for toilet facilities and toilet rooms. 
 The new sections will implement the provisions of Senate Bill 274 which became 
effective on September 1, 1993. Senate Bill 274 requires the department to adopt 
by rule minimum standards for the management and control of sanitation for both 
temporary and permanent public restrooms at publicly- and privately-owned 
facilities where the public congretes. 
 Charles R. Maddox, P.E., acting director, General Sanitation Division, has 
determined that for each year of the first five years that the new sections will 
be in effect, there will be fiscal implications as a result of administering or 
enforcing the new sections. The estimated cost to state government will range 
from $72,217 to $78,217 for each year for the administration and enforcement of 
the new sections. There will be no cost to local government. 
 Mr. Maddox also has determined that for the first five-year period that the new 
sections will be in effect the public benefit of enforcing or administering the 
proposed new sections is that the department will have official rules in effect 
which establishes the minimum ratio of women's to men's restrooms where the 
public congregates and establishes minimum construction and sanitation standards 
for toilet facilities and toilet rooms. The cost to small businesses, persons, 
and political subdivisions of Texas is difficult to calculate. The cost of 
compliance for new construction should be minimal as the number of toilets, 
calculated by an estimated ratio of women to men who will utilize the facility, 
and will be determined and drawn into plans at the design stage of the facility. 
The cost for new construction will consist of the cost of toilet fixtures, 
plumbing and labor above what would be expended if this rule was not in effect. 
The cost of renovation projects falling under this rule will be determined by 
the cost of materials, labor, fixtures, and plumbing needed to redesign those 
women's restrooms that are unable to accommodate the placement of additional 
toilets into their space. The cost to renovation projects with sufficient space 
in the women's restroom to accommodate additional toilets will be determined by 
the cost of the toilet fixtures, plumbing, and labor for their installation. 
There should be no impact on local employment for new construction or renovation 
projects. Compliance with this rule may lengthen the time it takes to complete a 
new or renovation project but the work would be done by the same employees hired 
if this rule were not in effect. 
 Comments on the proposed new sections may be sent to Elias Briseno, R.S., 
Assistant Division Director, General Sanitation Division, Texas Department of 
Health, 1100 West 49th Street, Austin, Texas 78756-3199, (512) 834-6635. Mr. 
Briseno will accept comments for 30 days after the publication of the proposed 
new section in the Texas Register. 
 The new sections are being proposed under the Health and Safety Code, Chapter 
341, which provides the Texas Board of Health (Board) with the authority to 
adopt rules consistent with Chapter 341 and establish standards and procedures 
for the management and control of sanitation and for health protection measures; 
and sec.12.001 which provides the Board with authority to adopt rules to 
implement every duty imposed on the board, the department and the commissioner 
of health. 
 The new sections affect the Health and Safety Code, Chapter 341. 
 
 
  sec.265.121. General Provisions. 
 
  (a) Scope. These sections apply to facilities where the public congregates. 
This includes sports and entertainment arenas, stadiums, community and 
convention halls, specialty event centers, and amusement facilities. 
   
  (b) Exclusion. The term "facilities where the public congregates" does not 
include hotels, churches, restaurants, bowling centers, public or private 
elementary or secondary schools, or historic buildings. 
   
  (c) Purpose. The purpose of these sections is to prescribe minimum standards 
for the availability of sufficient temporary or permanent restrooms to meet the 
needs of the public at peak hours at publicly- and privately-owned facilities 
where the public congregates. 
   
  (d) Penalty and enforcement. The statutory penalty and enforcement provisions 
covering violations of Chapter 341 and these sections are contained in the 
Health and Safety Code, Chapter 341, sec.341.091 and sec.341.092. 
   
  (e) Applicability date. These sections apply to facilities on which 
construction is started on or after January 1, 1994, or on which structural 
alterations, repairs, or improvements exceeding 50% of the entire facility are 
undertaken on or after January 1, 1994. 
 
     
  sec.265.122. Definitions.  The following words and terms, when used in these 
sections, shall have the following meanings, unless the context clearly 
indicates otherwise. 
   
   Approved-Approved by the Texas Department of Health, the local health 
authority, or the local building code enforcement officer whichever shall 
maintain jurisdiction. 
   
   Chemical toilets -A toilet facility in which human waste is collected in a 
container charged with a chemical for the purpose of disinfecting and 
deodorizing prior to disposal. 
   
   Construction-The actual, physical initiation of the building process such as 
the clearing of land, moving of dirt or preparation of a building to begin work. 
   
   Exceeding 50% of the entire facility-Structural alterations, repairs, or 
improvements with a cost exceeding 50% of the worth of the facility, as 
determined by the taxing authority maintaining jurisdiction. 
   
   Facilities where the public congregates-Sports and entertainment arenas, 
stadiums, community and convention halls, specialty event centers, and amusement 
facilities. The term does not include hotels, churches, restaurants, bowling 
centers, public or private elementary or secondary schools, or historic 
buildings. 
   
   Historic buildings -Buildings listed as historic by the Texas Historical 
Commission. 
   
   May-Used to denote authorized alternatives to mandatory provisions of this 
regulation. 
   
   Restroom-Toilet, chemical toilet, or water closet. 
   
   Sanitary condition -That condition of good order and cleanliness which 
precludes the probability of disease transmission. 
   
   Shall (or must) -Used to denote mandatory provisions of these sections. 
   
   Should-Indicates provisions which are not mandatory, but which are 
recommended as good practice. 
   
   Standards-Methods, practices, processes or operations necessary or 
appropriate to establish healthful conditions. 
   
   Toilet or toilet facility-A plumbing device for the purpose of defecation or 
urination, or both, including water closets and biological or chemical toilets, 
and urinals. 
   
   Toilet room-An enclosed area containing one or more toilet facilities and 
offering personal privacy. Toilet rooms may be either permanently located 
(fixed) or portable. 
   
   Urinal-A water flushed fixture connected with a sewer, maintained within a 
toilet room for the sole purpose of urination. 
   
   Water closet-A toilet facility which is connected to a sewer and flushed with 
water. 
 
   
  sec.265.123. Standards for Toilet Facilities and Toilet Rooms. 
 
  (a) General standards. 
 
  (1) Toilet facilities shall be provided in separate toilet rooms for both 
sexes in all facilities where the public congregates. They shall be readily 
accessible and may be either fixed (permanently located) or portable. 
   
  (2) Toilet facilities shall be either water-actuated, chemical, or biological 
toilets. Other systems may be used only upon specific permission of the health 
authority having local jurisdiction. 
   
  (3) If the use of restrooms is designated by gender, toilet facilities shall 
be provided for each sex at a ratio of not less than 2: 1 women's to men's or 
according to the following table: 
 
  [graphic] 
   
  (4) Toilet rooms and facilities shall be maintained in a sanitary condition, 
free of objectionable odors during all hours the facility is open to the public. 
The floors, walls, ceilings, partitions and doors of all toilet rooms shall be 
of a finish that can be easily cleaned. An adequate supply of toilet paper in a 
suitable holder shall be maintained for each toilet. Covered waste receptacles 
shall be provided in all toilet rooms used by women. 
     
  (b) Specifications for toilet facilities and rooms at fixed locations. 
 
  (1) Each toilet facility (water closet, chemical or biological toilet) at a 
fixed (permanent) location shall occupy a separate compartment equipped with a 
door and latch. Walls or partitions between fixtures shall be sufficiently high 
to assure privacy. Urinals do not need to occupy separate compartments. 
   
  (2) Each toilet facility shall be so installed that the space around it can be 
easily cleaned. This provision does not prohibit the use of wall-hung toilet 
stools or urinals. 
   
  (3) Each toilet seat shall have a seat made of substantial material having a 
nonabsorbent finish. 
   
  (4) Toilet rooms at fixed locations that are not ventilated by mechanical 
means shall be provided with a screened ventilation opening sufficiently large 
to permit adequate ventilation. 
     
  (c) Specifications for portable toilet facilities and rooms. 
 
  (1) Portable toilet facilities shall be so constructed as to be readily 
accessible. 
   
  (2)  Buildings housing portable toilet rooms may be mobile trailers or 
prefabricated, skid-mounted, or otherwise portable structures. If they contain 
more than one facility, each shall occupy a separate compartment with a door and 
a latch. Walls or partitions between toilets shall be sufficiently high to 
assure privacy. Urinals need not occupy separate compartments. 
   
  (3) If the structure contains a tank in which waste is stored, the tank shall 
be vented to the outside of the structure. 
   
  (4) Portable toilet rooms that are not ventilated by mechanical means shall be 
provided with an adequate screened ventilation opening. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435794 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Proposed date of adoption: April 13, 1994 
 For further information, please call: (512) 834-6635 
         
                     
  TITLE 28. INSURANCE 
 Part I. Texas Department of Insurance 
  Chapter 7. Corporate and Financial Regulation 
  
  Subchapter B. Insurance Holding Company System Regulatory Act 
 
  28 TAC sec.sec.7.201-7.205, 7.209-7.211, 7.213 
 
  The Texas Department of Insurance proposes amendments to  ssec.7.201-7. 205, 
7.209-7.211 and 7.213, concerning administrative regulation under the Insurance 
Code, Article 21.49-1, also known as the Insurance Holding Company System 
Regulatory Act (the Act). The amendments are necessary to provide technical 
corrections and clarifications and to implement amendments to Article 21.49-1 
enacted by passage of House Bill 1461, 73rd Legislature, 1993. The amendment to 
sec.7.201 adopts by reference the biographical affidavit form for use in 
accordance with sec.7.209(d). The amendment to sec.7.202 revises the definitions 
for "commissioner" and "insurer" and adds definitions for "commercially 
domiciled insurer" and "domestic insurer"; renumbers certain definitions; and 
permits exemption for commercially-domiciled insurers in certain instances. The 
amendment to sec.7.203 provides that commercially domiciled insurers are not 
exempt from registration; provides clarification that a registration statement 
includes each annual amendment and the completely restated registration 
statement; provides an exemption in the total reinsurance of a mutual assessment 
company by a stipulated premium insurance company; provides that filing a 
disclaimer relieves the person filing the disclaimer of the duty to comply with 
the Act,  s5(a)-(c), unless disallowed by the commissioner; requires at least 
ten days notice prior to payment of dividends and distributions to shareholders; 
provides that prepayment notices of dividends and distributions will be 
considered promptly, subject to the standards contained in the Act, sec.4(b); 
provides for annual review of dividends and distributions; and makes dividends 
to shareholders subject to appropriate action as may be authorized by other 
provisions of the Insurance Code. The amendment to  s7.204 broadens the scope 
for certain transactions requiring notice or approval; provide clarification of 
the applicable filing fee of an extraordinary dividend application and of when 
the application is complete; and sets forth certain sanctions and administrative 
penalties which may be taken. The amendment to sec.7.205 provides that a change 
of ownership of a commercially-domiciled insurer is subject to the Act, sec.5, 
and provides clarification that a restructuring is subject to the Act, 
sec.5(e)(3)(i). The amendment to sec.7.209 provides for the filing of 
biographical affidavit forms for individual applicants and the executive 
officers and directors of the applicant if the applicant is not an individual; 
removes a requirement of disclosing the criteria utilized in determining the 
purchase price; provide for the filing of biographical affidavit forms for 
proposed management; and provides for the filing of a business plan and for 
projections covering at least three years. The amendment to sec.7.210 requires 
disclosure of certain additional transactions. The amendment to sec.7.211 
removes an ambiguity in language. The amendment to sec.7.213 removes a 
requirement for disclosing the criteria utilized in determining the purchase 
price in the purchase of additional control, and requires the filing of a 
business plan and projections covering at least two years. 
 Sandra A. Autry, associate commissioner for the financial program, has 
determined that, for the first five-year period the proposed sections will be in 
effect, there will be no fiscal implications for state or local government as a 
result of enforcing or administering the sections and that there will be no 
effect on local employment or local economy. 
 Ms. Autry also has determined that, for each year of the first five years the 
proposed sections are in effect, the public benefits anticipated as a result of 
administering and enforcing the sections will be more effective regulation of 
insurers. There is no anticipated economic cost to persons or entities who are 
required to comply with the sections, as proposed, other than the minimal cost 
of completion of the appropriate forms and obtaining approval of the 
Commissioner. On the basis of cost per hour of labor, there is no anticipated 
difference in cost of compliance between small and large businesses. 
 Comments on the proposal must be submitted in writing within 30 days after 
publication of the proposal in the Texas Register to Linda K. von Quintus-Dorn, 
Chief Clerk, Texas Department of Insurance, P.O. Box 149104, MC 113-2A, Austin, 
Texas 78714-9104. An additional copy of the comments should be submitted to 
Sandra A. Autry, Financial Program, Texas Department of Insurance, P.O. Box 
149104, MC 305-2A, Austin, Texas 78714-9104. Request for a public hearing on 
this proposal should be submitted separately in writing to the Office of the 
Chief Clerk. 
 The sections are proposed under the Insurance Code, Articles 21.49-1 and 1. 
03A. Article 21.49-1, sec.11, authorizes the board to issue such rules, 
regulations, and orders as shall be consistent with and shall carry out the 
provisions of the Insurance Holding Company System Regulatory Act and to govern 
the conduct of its business and proceedings under the Act. Article 1. 03A 
provides the commissioner with the authorization to adopt rules and regulations 
for the conduct and execution of the duties and functions by the department. 
 The proposed amendments implement the Insurance Code, Article 21.49-1, Articles 
1.10, 1.10A, 1.32, 21.28, 21.28-A, 21.31, 21.32, and 21.49-1. 
 
 
  sec.7.201. Forms Filings. 
 
  (a) General requirements. 
 
  (1) The forms that are specified in sec.sec.7.209-7.213 of this title 
(relating to Form A, Form B, Form C, Form D, and Form E) are intended to be 
guides in the preparation of the statements, notices, and applications required 
by the Insurance Code, Article 21.49-1. They are to provide notice of the 
information required and the location in which it will be expected to be found. 
In preparing any statement, notice, or application, the text of the form need 
not be repeated so long as there is clear identity of the matter to which the 
answer or material applies. Unless expressly provided otherwise, if any item is 
inapplicable or the answer thereto is in the negative, an appropriate statement 
to that effect shall be made. The forms specified in sec. s7.209-7.213 of this 
title (relating to Form A, Form B, Form C, Form D, and Form E) are also referred 
to in this subchapter as Forms A-E. Form A is also referred to as the 
acquisition statement, Form B as the registration statement, Form C as a 
disclaimer, Form D as an extraordinary dividend, and Form E as an exemption 
statement. For use in accordance with <nl>sec.7.209(d) and (f) of this title 
(relating to Form A) and<ol> sec.7.210(e) of this title (relating to Form B), 
the Texas Department of Insurance adopts by reference the biographical affidavit 
form published by and available from the Texas Department of Insurance. Copies 
of this form may be obtained from Holding Company Activity, Mail Code 305-4A, 
Texas Department of Insurance, P.O. Box 149104, 333 Guadalupe, Austin, Texas 
78714-9104. 
   
  (2) Three complete originally signed copies of each statement, notice, or 
application, including exhibits and all other papers and documents filed as a 
part thereof, in connection with any acquisition statement filed under sec.7. 
209 of this title (relating to Form A), and one complete originally signed copy 
of every other statement, notice, or application, including exhibits and all 
other papers and documents filed as a part thereof, shall be filed with the 
commissioner by personal delivery or by mail addressed to: Holding Company 
Activity, Mail Code 305-4A, Texas Department of Insurance, P.O. Box 149104, 
<nl>333 Guadalupe,<ol> Austin, Texas 78714-9104. Each statement, notice, or 
application shall be subject to the appropriate filing fee provided for in 
sec.7.1301 of this title (relating to Regulatory Fees). The appropriate filing 
fee shall be forwarded to the Holding Company Activity of the Texas Department 
of Insurance under separate cover along with a copy of the letter transmitting 
the statement, notice, or application. 
   
  (3)-(4) (No change.) 
     
  (b)-(e) (No change.) 
 
     
  sec.7.202. Definitions. 
 
  (a) The following words and terms, when used in this subchapter, shall have 
the following meanings, unless the context clearly indicates otherwise. 
 
  (1)-(2) (No change.) 
   
  <nl>(3) Commercially domiciled insurer-A foreign or alien insurer authorized 
to do business in this state that during its three preceding fiscal years taken 
together, or any lesser period if it has been licensed to transact business in 
this state only for that lesser period, has written an average of more gross 
premiums in this state than it has written in its state of domicile during the 
same period, and such gross premiums constitute 20% or more of its total gross 
premiums everywhere in the United States for that three-year or lesser period, 
as reported in its three most recent annual statements. To determine if an 
insurer is a commercially domiciled insurer, the annual average ratio for 
premium receipts addressed in subparagraphs (A) and (B) of this paragraph shall 
be calculated, as follows: 
 
  <nl>(A) total Texas premium for the preceding three fiscal years (or any 
lesser period if licensed in Texas less than three years) divided by total 
premium countrywide for the preceding three years; and 
   
  <nl>(B) total premium in the state of domicile for the preceding three years 
divided by total premium countrywide for the preceding three years.  <ol>[Board-
The State Board of Insurance of the State of Texas.] 
     
  <nl>(4)<ol>[(3)] Commissioner-The Commissioner of Insurance of the State of 
Texas, [or] the Commissioner's associates or deputies, <nl>or their 
designees,<ol> as appropriate. 
   
  <nl>(5)<ol>[(4)] Control-The term "control," including the terms 
"controlling," "controlled by," and "under common control with," means the 
possession, direct or indirect, of the power to direct or cause the direction of 
the management and policies of a person, whether through the ownership of voting 
securities, by contract other than a commercial contract for goods or 
nonmanagement services, or otherwise, unless the power is the result of an 
official position with or corporate office held by the person. Control shall be 
presumed to exist if any person, directly or indirectly, or with members of the 
person's immediate family, owns, controls, or holds with the power to vote, or 
if any person other than a corporate officer or director of a person holds 
proxies representing, 10% or more of the voting securities or authority of any 
other person, or if any person by contract or agreement is designated as an 
attorney-in-fact for a Lloyd's plan insurer under the Insurance Code, Article 
18.02, or for a reciprocal or interinsurance exchange under the Insurance Code, 
Articles 19.02 and 19.10. This presumption may be rebutted by a showing made in 
the manner provided by the Act, sec.3(j), that control does not exist in fact 
[and that the person rebutting the presumption is in compliance with the Act, 
sec.sec.5(a)-(c)]. The commissioner may determine, after furnishing all persons 
in interest notice and opportunity to be heard and making specific findings of 
fact to support such determination, that control exists in fact, notwithstanding 
the absence of a presumption to that effect, where a person exercises directly 
or indirectly either alone or pursuant to an agreement with one or more other 
persons such a controlling influence over the management or policies of an 
authorized insurer as to make it necessary or appropriate in the public interest 
or for the protection of the policyholders of the insurer that the person be 
deemed to control the insurer. 
   
  <nl>(6)<ol>[(5)] Controlled insurer -An insurer controlled directly or 
indirectly by a holding company (as a holding company is defined in this 
section). 
   
  <nl>(7)<ol>[(6)] Controlled person -Any person, other than a controlled 
insurer, who is controlled directly or indirectly by a holding company (as a 
holding company is defined in this section). 
   
  (8)<ol>[(7)] Controlling producer -An insurance broker or brokers or any 
person, firm, association or corporation domiciled, licensed, or operating in a 
state other than Texas, when, for any compensation, commission or other thing of 
value, such person, firm, association or corporation acts or aids in any manner 
in soliciting, negotiating or procuring the making of any insurance contract on 
behalf of an insured other than such person, firm, association or corporation, 
and who, directly or indirectly: 
 
  (A) controls or seeks to control a property and casualty insurer as the term 
control is defined in paragraph <nl>(5) <ol>[(4)] of this subsection; and 
   
  (B) writes or places, in any calendar year, an aggregate amount of gross 
written premiums with such controlled property and casualty insurer which is 
equal to or greater than 5.0% of the admitted assets of such insurer as reported 
in such insurer's quarterly statement filed as of September thirtieth of the 
prior year. The term "producer" or "controlling producer" as used in these 
sections is not intended to include an agent or any independent agent acting on 
behalf of the controlled insurer, licensed pursuant to the Insurance Code, 
Chapter 21, Subchapter A, and any subagent or representative of the agent, who 
acts as such in the solicitation of, negotiation for, or procurement or making 
of an insurance contract, if the agent is not also acting on behalf of an 
insured as set forth in <nl>this<ol> paragraph [(7) of this subsection], in the 
transaction in question. The term "producer" or "controlling producer" as used 
in these sections is not intended to include an attorney-in-fact acting on 
behalf of a licensed Lloyds or licensed reciprocal or interinsurance exchange. 
     
  <nl>(9)<ol>[(8)] Domestic insurer -For purposes of these sections, a 
commercially domiciled insurer is considered to be a domestic insurer, and 
subject to regulation as an insurer domiciled in this state. 
   
  <nl>(10)<ol>[(9)] Executive officer -The chairman of the board of directors, 
the president, any vice-president of an applicant in charge of a principal 
business unit, division, or function (such as sales, administration, finance, or 
underwriting), any other officer who performs a policy-making function, or any 
other person who performs similar policy-making functions for an applicant. 
Executive officers of subsidiaries may be deemed executive officers of an 
applicant if they perform such policy-making functions for an applicant. 
   
  <nl>(11)<ol>[(10)] Foreign insurer -Includes an alien insurer. 
   
  <nl>(12)<ol>[(11)] Holding company -Any person who directly or indirectly 
controls any insurer except that it shall not be deemed to include: the United 
States, a state or any political subdivision, agency or instrumentality thereof 
or any corporation which is wholly owned directly or indirectly by one or more 
of the foregoing. 
   
  <nl>(13)<ol>[(12)] Immediate family -A person's spouse, father, mother, 
children, brothers, sisters, and grandchildren, the father, mother, brothers, 
and sisters of the person's spouse, and the spouse of the person's child, 
brother or sister, mother, father, or grandparent. 
   
  <nl>(14)<ol>[(13)] Insurance holding company system-Consists of two or more 
affiliated persons, one or more of which is an insurer. 
   
  <nl>(15)<ol>[(14)] Insurer-Includes all insurance companies organized or 
chartered under the laws of this state,  <nl>commercially domiciled insurers, 
<ol> or <nl>insurers<ol> licensed to do business in this state, including 
capital stock companies, mutual companies, farm mutual insurance companies, 
title insurance companies, fraternal benefit societies, local mutual aid 
associations, local mutual burial associations, statewide mutual assessment 
companies, county mutual insurance companies, Lloyds' plan companies, reciprocal 
or interinsurance exchanges, stipulated premium insurance companies and group 
hospital service companies, and any other entity which is made subject to the 
Insurance Code, Article 21.49-1, by applicable law, except that it shall not 
include agencies, authorities, or instrumentalities of the United States, its 
possessions and territories, the Commonwealth of Puerto Rico, the District of 
Columbia, or a state or political subdivision of a state. 
   
  <nl>(16)<ol>[(15)] Person-An individual, a corporation, a partnership, an 
association, a joint stock company, a trust, an unincorporated organization, any 
similar entity or any combination of the foregoing acting in concert, but shall 
not include any securities broker performing no more than the usual and 
customary broker's function. 
   
  <nl>(17)<ol>[(16)] Security holder -Of a specified person is one who owns any 
security of such person, including common stock, preferred stock, debt 
obligations, and any other security convertible into or evidencing the right to 
acquire any of the foregoing. The term "debt obligation" shall not include 
trade, commercial, or open accounts, matured claims, or agents' commissions. 
   
  <nl>(18)<ol>[(17)] Subsidiary-Of a specified person is an affiliate controlled 
by such person directly or indirectly through one or more intermediaries. 
   
  <nl>(19)<ol>[(18)] Ultimate controlling person-That person which is not 
controlled by another person (as defined in this subsection). 
   
  <nl>(20)<ol>[(19)] Voting security -Any security or other instrument giving or 
granting to the holder the power to vote at a meeting of shareholders of a 
person for or against the election of directors or any other matter involving 
the direction of the management and policies of such person, or any other 
security or instrument which the Texas Department of Insurance deems to be of 
similar nature including, but not limited to, those described in such rules and 
regulations as the Texas Department of Insurance may prescribe in the public 
interest as a voting security. 
     
  (b) Exemption. 
 
  <nl>(1) Certain insurance holding company systems of the type specified in the 
Act, sec.2(r), may be exempted or partially exempted from the Act and these 
sections in the manner provided in the Act, sec.2(r). 
   
  <nl>(2) The commissioner may exempt from the provisions of the Act and these 
sections any commercially-domiciled insurer if the commissioner determines that 
the insurer has assets physically located in this state or an asset to liability 
ratio sufficient to justify the conclusion that there is no reasonable danger 
that the operations or conduct of the business of the insurer could present a 
danger of loss to the policyholders of this state. An exemption granted under 
this subsection shall be subject to annual review. The commissioner may, after 
notice and hearing, rescind an exemption granted to a commercially-domiciled 
insurer under the provisions of the Act and these sections. A rescission of an 
exemption shall set forth the rationale for the rescission. Requests for an 
exemption under this subsection shall be filed with Holding Company Activity, 
Mail Code 305-4A, Texas Department of Insurance, P. O. Box 149104, 333 
Guadalupe, Austin, Texas 78714-9104. The request must contain a signed and 
notarized affidavit of an executive officer of the insurer that, should the 
exemption be granted, the insurer will notify the Holding Company Activity 
within 10 days of the insurer no longer meeting the criteria utilized in 
granting the exemption. The commissioner may consider the criteria in 
subparagraphs (A)-(D) of this paragraph in connection with an exemption 
requested under the Act, sec.2(s), and these sections. 
 
  <nl>(A) Assets in Texas, which are either: 
 
  <nl>(i)<nl> permanent, free, and unencumbered and physically located in Texas 
in an amount equal to the total unpaid losses attributable to Texas risks; or 
   
  <nl>(ii)<nl> qualifying authorized investments under the Insurance Code 
comprising 20% of the insurer's admitted assets and physically located in Texas. 
     
  <nl>(B) Adequacy of policyholder surplus, based upon: 
 
  <nl>(i)<nl> an asset to liability ratio of two to one, if the insurer is a 
property and casualty insurer; 
   
  <nl>(ii)<nl> an asset to liability ratio of one and one-half to one, if the 
insurer is a life, accident and health insurer; 
   
  <nl>(iii)<nl> the insurer having capital and surplus equal to 250% of the 
minimum risk-based capital described in sec.7.410 of this title (relating to 
Minimum Risk-Based Capital and Surplus Requirements for Stock Property/Casualty 
Insurers) or sec.7.401 of this title (relating to Minimum Risk-Based Capital and 
Surplus Requirements for Life, Accident and Health Insurers); or 
   
  <nl>(iv)<nl> the insurer having total capital and surplus of at least $50 
million. 
     
  <nl>(C) Consideration may be given to financial conditions specified in 
sec.8.3 of this title (relating to Hazardous Conditions) to justify the 
conclusion that there is no reasonable danger that the operations or conduct of 
the business of the insurer could present a danger of loss to the policyholders 
of this state. 
   
  <nl>(D) Consideration may be given to other positive factors regarding an 
insurer's operations or conduct. 
 
         
  sec.7.203. Registration of Insurers. 
 
  (a) Except as provided by the Act, every insurer which is authorized or 
incorporated to do business in this state and which is a member of an insurance 
holding company system shall register in accordance with the Act, sec.3. <nl>The 
exemption from registration for a foreign insurer does not apply to a 
commercially domiciled insurer doing business in this state. 
   
  (b)-(d) (No change.) 
   
  (e) Amendments to registration statements. Each registered insurer shall keep 
current the information required to be disclosed in its registration statement 
by reporting all material changes or additions (whether single transactions or 
cumulative in total). Such amendment shall be in accordance with sec.7.210 of 
this title (relating to Form B), the registration statement, the cover page 
requirements of sec.7.201(d) of this title (relating to Forms Filings), and with 
a positive statement as to the items of the form not being amended instead of 
setting out such unamended portions. Such amendment shall be filed within 15 
days after the end of the month in which the registered insurer learns of each 
such change or addition. Within 60 days after the effective date of these 
sections, each insurer shall amend its registration statement to comply with 
these sections. Any transaction that is formally approved by official order of 
the commissioner under any of the following enumerated provisions shall be 
deemed to be an amendment to the registration statement without further action 
or filing: 
 
  (1)-(9) (No change.) 
   
  <nl>(10) the Insurance Code, Article 22.15, provided that all requirements of 
the article are met; 
   
  <nl>(11)<ol>[(10)] the Insurance Code, Article 22.19, provided that the 
reinsurance is a total direct reinsurance; and 
   
  <nl>(12)<ol>[(11)] any other transaction formally approved by official order 
of the commissioner under authority authorized by any other provisions of the 
Insurance Code. 
     
  (f) (No change.) 
   
  (g) Annual amendment. Within 120 days after the end of each fiscal year of the 
ultimate controlling person (that person which is not controlled by another 
person) of the insurance holding company system, the registrant shall file an 
amendment to the registration statement which shall make the registration 
statement current. Within 120 days of the end of each calendar year ending in a 
five or a zero, the registrant shall file a completely restated up-to-date 
registration statement as set out in sec.7.210 of this title (relating to Form 
B), with amendments consolidated therein. The registrant is not required to file 
an annual amendment to its registration statement under this subsection in the 
year that it files a completely restated up-to-date registration statement. 
<nl>The registration statement referred to in sec.7.1301(d)(23) of this title 
(relating to Regulatory Fees) includes each annual amendment to the registration 
statement and the completely restated up-to-date registration statement. 
   
  (h)-(j) (No change.) 
   
  (k) Exemptions. The provisions of this section shall not apply to any insurer, 
information, or transaction if and to the extent that the <nl>commissioner<ol> 
[board] by rule, regulation, or order shall exempt the same. 
   
  (l) Disclaimer. Any person may file with the commissioner a disclaimer of 
control or affiliation with any insurer, or such a disclaimer may be filed by 
such insurer or any member of an insurance holding company system. The 
disclaimer shall be in accordance with sec.7.211 of this title (relating to Form 
C) and shall disclose all material relationships and bases for affiliation 
between such persons and such insurer as well as the basis for disclaiming such 
affiliation. A copy of any disclaimer filed with the commissioner, if the 
affected insurer is not a party thereto, shall also be furnished by the 
applicant to the insurer at the same time it is filed with the commissioner. The 
insurer shall, within 15 business days after receipt thereof, unless the time is 
extended by the commissioner for good cause, respond to the matters raised in 
the disclaimer if it does not have a current registration statement on file with 
the commissioner. After a disclaimer has been filed, the insurer shall be 
relieved of any duty to register or report under subsection (a) of this section 
which may arise out of the insurer's relationship with such person unless and 
until the commissioner disallows such a disclaimer. <nl>Unless disallowed by the 
commissioner, a<ol> [A] disclaimer filed under this subsection <nl>relieves <ol> 
[does not relieve] a person of the duty to comply with the requirements of the 
Act, sec.5(a)-(c). The commissioner shall disallow such a disclaimer only after 
furnishing all parties in interest with notice and opportunity to be heard and 
after making specific findings of fact to support such disallowance. After a 
disclaimer of control or affiliation has been filed by any person, any 
acquisition, in any manner, directly or indirectly, of a voting security of the 
domestic insurer by such person shall be subject to the Act, sec.5, in absence 
of the filing, within five business days, of an amendment which shall make 
current the disclaimer of control or affiliation previously filed pursuant to 
this subsection. 
   
  (m) (No change.) 
   
  (n) Dividends and distributions. Each registered insurer shall, by personal 
delivery or by mail addressed to: Holding Company <nl>Activity<ol> [Division], 
Mail Code <nl>305-4A<ol> [304-2A], Texas Department of Insurance, P.O. Box 
149104, 333 Guadalupe, Austin, Texas 78714-9104, provide notice to the 
commissioner of all dividends and other distributions to shareholders within two 
business days following the declaration thereof <nl>and at least 10 days prior 
to payment<ol> in the form prescribed by the commissioner and adopted herein by 
reference as Form HCDividend and such notice shall be deemed an amendment to the 
registration statement without further action or filing. <nl>Prepayment notices 
will be considered promptly. Each prepayment notice shall be accompanied by 
documentation supporting each of the standards specified in the Act, sec.4(b). 
Dividends and distributions, including those declared by property and casualty 
insurers where the dividend exceeds the net income as of the preceding December 
31, shall be reviewed by the commissioner and, if the standards in the Act, 
sec.4(b) are not met, the commissioner shall take appropriate action, including 
but not limited to that provided under the Insurance Code, Articles 1.10, 1.10A, 
1.32, 21.28, 21.28-A, 21.31, and 21.32. All reported dividends and distributions 
shall be reviewed annually in the registration statement filed pursuant to 
sec.7.210 of this title (relating to Form B). <ol> See sec.7.204(d) of this 
title (relating to Commissioner's Approval Required) for requirements regarding 
extraordinary dividends and distributions. [All dividends and distributions to 
shareholders are subject to the applicable provisions of the Insurance Code, 
Articles 3.11, 21.31, 21.32 and 21.32A.] 
 
     
  sec.7.204. Commissioner's Approval Required. 
 
  (a) Prior approval and notice. 
 
  (1) (No change.) 
   
  (2) The following transactions between a domestic insurer and any person in 
its holding company system may not be entered into unless the insurer has 
notified the commissioner in writing of its intention to enter into any such 
transaction at least 30 days prior thereto, or such shorter period as he may 
permit, and he has not disapproved it within such period: 
 
  (A)-(C) (No change.) 
   
  <nl>(D) the payment of a bonus to a control person; 
   
  <nl>(E)<ol>[(D)] management or service agreements, cost sharing agreements, 
rental or leasing agreements; 
   
  <nl>(F)<ol>[(E)] agreements to consolidate federal income tax returns, which 
agreements shall provide that a domestic insurer will be adequately indemnified 
in the event the Internal Revenue Service levies upon the insurance company's 
assets for unpaid taxes in excess of the amount paid under the agreement; 
   
  <nl>(G)<ol>[(F)] transactions with affiliated financial institutions, other 
than fully insured deposits; and 
   
  <nl>(H)<ol>[(G)] any material transactions which the commissioner has 
determined after notice may adversely affect the interest of the insurer's 
policyholders or of the public. 
     
  (3)-(6) (No change.) 
     
  (b)-(c) (No change.) 
   
  (d) Extraordinary dividends and other distributions. 
 
  (1) No insurer subject to registration under sec.7.203(a) of this title 
(relating to Registration of Insurers) shall pay any extraordinary dividend or 
make any other extraordinary distribution to its shareholders until: 
 
  (A) 30 days after the commissioner has received written notice in accordance 
with sec.7.212 of this title (relating to Form D) of the declaration thereof, 
<nl>including the applicable filing fee pursuant to sec.7.1301(d)(24) of this 
title (relating to Regulatory Fees),<ol> and <nl>the commissioner <ol> has not 
within such period disapproved such payment; or 
   
  (B) the commissioner shall have approved such payment within such 30-day 
period. <nl>The written notice required under this paragraph shall be deemed 
filed with the commissioner only when all material sufficient to constitute a 
complete filing has been provided, including satisfaction of the standards set 
forth in the Act,  s4(b), as well as payment of any required filing fee pursuant 
to sec.7.1301(d)(24) of this title (relating to Regulatory Fees). 
     
  (2)-(3) (No change.) 
     
  (e) (No change.) 
   
  <nl>(f) Revocation, suspension, or non-renewal of insurer's license. Whenever 
it appears to the commissioner that any person has committed a violation of this 
section which makes the continued operation of an insurer contrary to the 
interest of policyholders or the public, the commissioner may, after giving 
notice and an opportunity to be heard, determine to suspend, revoke, or refuse 
to renew such insurer's license or authority to do business in this State for 
such period as he finds is required for the protection of policyholders or the 
public. Any such determination shall be accompanied by specific findings of fact 
and conclusions of law. 
   
  <nl>(g) Rescission, revocation, and reversal of unauthorized transactions. 
Whenever it appears to the commissioner that any person has entered into any 
transaction or act without having first complied with the provisions of this 
section applicable to such transaction or act, and in violation hereof, or has 
obtained the commissioner's approval of or acquiescence in a transaction or act 
subject to this section based upon a material fraudulent misrepresentation, 
misstatement, or omission, the commissioner may, after giving notice and an 
opportunity to be heard, determine and order that such transaction or act be set 
aside, rescinded, revoked, reversed, and rendered void and of no force or 
effect, and that the parties to such transaction or act shall be returned to the 
position they would have occupied had not such transaction or act occurred in 
violation of this section. The foregoing sanctions are in addition to actions 
the commissioner may order or take as may be authorized by other provisions of 
the Insurance Code, including, but not limited to, Articles 1.10, sec.7, 1.10A, 
and 1.32. 
 
     
  sec.7.205. Acquisition Statements -Filing Requirements. 
 
  (a) Filing Requirements. Filing and other regulatory requirements for 
acquisitions of control and certain other matters as specified in the Act, 
sec.5(a), are governed by the Act, sec.5(a). For purposes of this subsection, a 
domestic insurer as defined in the Act, sec.5(a)(2), shall include any person 
controlling a domestic insurer, <nl>including a commercially domiciled insurer, 
<ol> unless such person is either directly or through its affiliates primarily 
engaged in business other than the business of insurance. A change or 
substitution of an attorney-in-fact of a Lloyd's or reciprocal or interinsurance 
exchange is subject to the Act,  s5. A failure to file complete and accurate 
information in all material respects is grounds for a denial by the commissioner 
under the Act, sec.5(c). 
   
  (b)-(g) (No change.) 
   
  (h) Exemptions. The provisions of this section shall not apply to transactions 
and other matters exempted under the Act, sec.5(e). <nl>A restructuring within 
an insurance holding company system which results in a direct or indirect change 
in control of a domestic insurer is subject to the Act,  s5(e)(3)(i).<ol> An 
acquisition of a voting security of a domestic insurer specified in the Act, 
sec.5(e)(4) and (6), shall be disclosed by amendment to the registration 
statement as provided in sec.7.203(f) of this title (relating to Registration of 
Insurers). The written application for exemption in the acquisition of a voting 
security specified in the Act, sec.5(e) (5), shall be made in accordance with 
sec.7.213 of this title (relating to Form E), the exemption statement. The 
approval of an application under sec.7.213 shall be deemed an amendment under 
sec.7.203 to an insurer's registration statement without further filing. An 
acquisition of a voting security of a domestic insurer by a security holder 
controlling, directly and indirectly, 50% of the then issued and outstanding 
voting securities of such domestic insurer, shall be subject to the Act, 
sec.5(e)(5). An acquisition of a voting security of an insurer domiciled in this 
state which is not subject to the Act, sec.5(a)(1), by virtue of the Act, 
sec.5(a)(2), shall be subject to the Act, <nl> sec.5(e)(3)(ii) <ol>[ s5(e)(3)]. 
   
  (i)-(n) (No change.) 
   
  (o) Producer-Controlled Property and Casualty Insurer. 
 
  (1) For purposes of this section, a controlling producer, as defined in 
<nl>sec.7.202(a)(8) <ol>[ s7.202(a)(7)] of this title (relating to Definitions), 
is subject to the filing requirements of the Act, sec.5 in addition to the 
following requirements. 
 
  (A)-(B) (No change.) 
     
  (2) (No change.) 
     
  (p) (No change.) 
 
     
  sec.7.209. Form A. 
 
  (a)-(c) (No change.) 
   
  (d) Identity and background of individuals <nl>associated <ol> with the 
applicant. <nl>Furnish biographical data for the applicant if such person is an 
individual, or for all persons who are directors, executive officers, or owners 
of 10% or more of the voting securities of the applicant if the applicant is not 
an individual, with such biographical data in the form of the biographical 
affidavit form adopted by reference under sec.7.201(a)(1) of this title 
(relating to Forms Filings). Copies of this form are available from the Holding 
Company Activity, Mail Code 305-4A, Texas Department of Insurance, P. O. Box 
149104, 333 Guadalupe, Austin, Texas 78714-9104. <ol> [State the following with 
respect to the applicant if he is an individual, or all persons who are 
directors, executive officers, or owners of 10% or more of the voting securities 
of the applicant if the applicant is not an individual: 
 
  [(1)  name and business address; 
   
  [(2) present principal business activity, occupation or employment including 
position and office held and the name, principal business, and address of any 
corporation or other organization in which such employment is carried on; 
   
  [(3) material occupations, positions, offices, or employments during the last 
five years, giving the starting and ending dates of each and the name, principal 
business, and address of any business corporation, or other organization in 
which each such occupation, position, office, or employment was carried on; if 
any such occupation, position, office, or employment required licensing by or 
registration with any federal, state or municipal governmental agency, indicate 
such fact, the current status of such licensing or registration, and an 
explanation of any surrender, revocation, suspension, or disciplinary 
proceedings in connection therewith; and 
   
  [(4) whether or not such person has ever been convicted in a criminal 
proceeding (excluding minor traffic violations) during the last 10 years and, if 
so, give the date, nature of conviction, name and location of court, and penalty 
imposed or of the dispositions of the case]. 
     
  (e) Nature, source, and amount of funds or other consideration. 
 
  (1) (No change.) 
   
  [(2) Explain the criteria used in determining the nature and amount of such 
consideration.] 
   
  <nl>(2)<ol>[(3)] If the source of the consideration is provided by a 
commercial lender in the ordinary course of business and if the applicant wishes 
the identity to remain confidential, he must specifically request that the 
identity be kept confidential. When confidentiality is requested such identity 
shall be provided by a separate instrument filed with, but not forming a part 
of, the acquisition statement. 
   
  <nl>(3)<ol>[(4)] If the consideration is to consist in whole or in part of the 
insurance business and assets of the insurer or of a person controlled by the 
insurer, state the value thereof and how such value was arrived at. 
     
  (f) Future plans for insurer. 
 
  (1) <nl>Provide a business plan which describes<ol> [Describe] any plans or 
proposals which the applicant may have or may contemplate making to cause the 
insurer to pay dividends or make other distributions, to liquidate such insurer, 
to sell any of its assets, to merge or consolidate it with any person or 
persons, to make any other material change in its business operations or 
corporate structure or management, or to cause the insurer to enter into 
material agreements, arrangements, or transactions of any kind with any party, 
and describe any financial or employment guarantees given to present and 
contemplated management. 
   
  (2) (No change.) 
   
  (3) For the domestic insurer, provide the full name of each individual[, if 
known,] who will be responsible for major areas of operations of the domestic 
insurer, including but not limited to, supervision of agents, underwriting, 
advertising, production of business through agents and through reinsurance, 
policyholder services, premium accounting, claims processing and litigation, 
reinsurance cessions, investments, and financial accounting and reporting. For 
each area, evidence such individual's ability and experience to perform same 
<nl>by providing biographical data in the form of the biographical affidavit 
form adopted by reference under sec.7.201(a)(1) of this title (relating to Forms 
Filings). 
   
  (4) (No change.) 
     
  (g)-(l) (No change.) 
   
  (m) Financial statements and exhibits. 
 
  (1)-(2) (No change.) 
   
  (3) File as exhibits copies of all tender offers for, requests or invitations 
for, tenders of, exchange offers for, and agreements to acquire or exchange any 
voting securities of the insurer and (if distributed) of additional soliciting 
material relating thereto; and proposed employment, consultation, advisory, or 
management contracts concerning the insurer; budget projections of the domestic 
insurer and the applicant for <nl>a period equal to the greater of three years 
or<ol> the succeeding length of time of debt service required by applicant in 
its acquisition of control; and any additional document or papers required by 
regulation. 
 
       
  sec.7.210. Form B. 
 
  (a)-(d) (No change.) 
   
  (e) Biographical information. Furnish biographical data for the ultimate 
controlling person(s) if such person is an individual, or for the directors and 
executive officers of the ultimate controlling person if the ultimate 
controlling person is not an individual, with such biographical data in the form 
of the biographical affidavit form adopted by reference under sec.7. 201(a)(1) 
of this title (relating to Forms Filings). Copies of this form are available 
from Holding Company <nl>Activity<ol> [Division], Mail Code  <nl>305-4A<ol> 
[304-2A], Texas Department of Insurance, P.O. Box 149104, 333 Guadalupe, Austin, 
Texas 78714-9104. 
   
  (f) Transactions, relationships, and agreements. 
 
  (1) Briefly describe the following agreements in force, relationships 
subsisting, and transactions currently outstanding between the registrant and 
its holding company, its subsidiaries, and its affiliates: 
 
  (A)-(D) (No change.) 
   
  <nl>(E) all bonuses paid to a control person; 
   
  <nl>(F)<ol>[(E)] all management and service contracts and all cost sharing 
arrangements; 
   
  <nl>(G)<ol>[(F)] reinsurance agreements covering all or substantially all of 
one or more lines of insurance of the ceding company; 
   
  <nl>(H)<ol>[(G)] all dividends and other distributions to shareholders; 
   
  <nl>(I)<ol>[(H)] agreements with affiliates to consolidate federal income tax 
returns; 
   
  <nl>(J)<ol>[(I)] all transactions with affiliated financial institutions; 
   
  <nl>(K)<ol>[(J)] the amount of commissions paid to the controlling producer, 
the percentage such amount represents of the net premium written, and comparable 
amounts and percentages paid to noncontrolling producers for placements of the 
same kinds of insurance; 
   
  <nl>(L) all surplus debentures, surplus notes, premium income notes, bonds, or 
debentures, and other contingent evidences of indebtedness outstanding; 
   
  <nl>(M)<ol>[(K)] any affiliated transaction not disclosed in subparagraphs 
<nl>(A)-(L)<ol> [(A)-(J)] of this paragraph which is subject to the Act, 
sec.4(d); and 
   
  <nl>(N)<ol>[(L)] any pledge of an insurer's stock, including stock of any 
subsidiary or controlling affiliate, for a loan made to any member of its 
insurance holding company system. 
     
  (2) (No change.) 
     
  (g)-(j) (No change.) 
 
     
  sec.7.211. Form C. 
 
  (a)-(b) (No change.) 
   
  (c) Applicant is [not] directly or indirectly controlled by or under common 
control with the previously named insurer. ____Yes _____No 
   
  (d)-(f) (No change.) 
 
     
  sec.7.213. Form E. 
 
  (a)-(c) (No change.) 
   
  (d) Nature, source, and amount of funds or other consideration. 
 
  (1) (No change.) 
   
  [(2) Explain the criteria used in determining the nature and amount of such 
consideration.] 
   
  <nl>(2)<ol>[(3)] If the consideration is to consist in whole or in part of the 
insurance business and assets of the insurer or of a person controlled by the 
insurer, state the value thereof and how such value was arrived at. 
     
  (e) Future plans for insurer. 
 
  (1) (No change.) 
   
  (2) <nl>Provide a business plan which describes<ol> [Describe] applicant's 
operational plans for the domestic insurer covering the succeeding 24 months, 
including, but not limited to, change of location, change of name, increase in 
capital and/or surplus, type business to be written, and anticipated premium 
volume. For the domestic insurer, provide the full name of any new employee or 
officer to be employed as a result of the further acquisition of control and 
provide biographical information in the form specified in sec.7.210(e) of this 
title (relating to Form B). 
     
  (f)-(g) (No change.) 
   
  (h) Financial statements and exhibits. 
 
  (1)-(2) (No change.) 
   
  (3) File as exhibits copies of all tender offers for, requests or invitations 
for, tenders of, exchange offers for, and agreements to acquire or exchange any 
voting securities of the insurer and (if distributed) of additional soliciting 
material relating thereto; and proposed employment, consultation, advisory, or 
management contracts concerning the insurer; budget projections of the domestic 
insurer and the applicant for <nl>a period equal to the greater of two years 
or<ol> the succeeding length of time of debt service required by applicant in 
its acquisition of control; and any additional document or papers required by 
regulation. 
     
  (i) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435774 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 463-6327 
         
                   
  TITLE 30. ENVIRONMENTAL QUALITY 
 Part I. Texas Natural Resource Conservation Commission 
  Chapter 114. Control of Air Pollution From Motor Vehicles 
  
  The Texas Natural Resource Conservation Commission (TNRCC) proposes the repeal 
of sec.114.11 and new sec.114.11, concerning the vehicle conversions to 
alternatively fueled vehicle requirements for motor vehicle fleets. A control 
strategy which fully describes the technical, administrative, and enforcement 
provisions of the fleet program is being concurrently proposed. The new section 
and control strategy, to be known as the Texas Alternative Fuel Fleet (TAFF) 
program, are proposed as a revision to the State Implementation Plan (SIP) for 
the control of ozone and carbon monoxide in the Houston/Galveston, Beaumont/Port 
Arthur, and El Paso nonattainment areas. This revision is necessary under the 
1990 Federal Clean Air Act Amendments which requires the establishment of a 
clean fuel fleet program in serious, severe, and extreme ozone nonattainment 
areas and carbon monoxide nonattainment areas. 
 The TAFF program is based on a modification of the provisions of the Texas 
Alternative Fuel Program which was established in 1989 by the passage of Senate 
Bills 769 and 740. The reduction documented in the TAFF program constitute the 
finding required by this legislation that the use of alternative fuels in Texas 
can be expected to result in environmental benefits under the conditions of the 
proposed program. 
 The proposed new sec.114.11 contains: definition of the affected fleets; 
definition of the approved alternative fuels for use in fleet motor vehicles; 
fleet compliance schedules and requirements; vehicle conversion certification 
requirements; installation requirements of conversion systems by manufacturers 
and installers; a requirement for fleet vehicles to meet Low-Emission Vehicle 
(LEV) exhaust emission standards; fleet compliance reporting requirements; fleet 
record keeping requirements; provisions for program waivers and exemptions; and 
provision for the generation of mobile emission reduction credits. 
 Stephen Minick, Budget and Planning Division, has determined that the repeal 
and new rule will result in no fiscal impact for state government because the 
provisions of this proposal conform existing state and federal requirements. The 
benefit to local governments is in the form of emission reductions, lower fuel 
costs, reduced dependency on foreign oil, increased public health benefits, and 
job creation. 
 Mr. Minick also has determined that the public benefit anticipated as a result 
of adopting the proposed changes will be improved air quality due to reduced 
aggregate emissions from automobiles, and reduced dependency on foreign oil, in 
the Houston/Galveston, Beaumont/Port Arthur, and El Paso areas. The fiscal 
impact of this proposal on small businesses should be minimal due to the 
availability of waivers for fleets which can demonstrate costs which exceed 
those for vehicles operated on convention fuels. 
 Public hearings on this proposal are scheduled for February 28, 1994 at 7: 00 
p.m. at the Houston-Galveston Area Council located at 3555 Timmons Lane, 
Houston; March 1, 1994, at 10:00 a.m. in the Auditorium (Room 201S) of the TNRCC 
Central Office, located at 12118 North IH-35, Park 35 Technology Center, 
Building E, Austin; March 1, 1994, at 11:00 a.m. at the John Gray Institute 
located at 855 Florida Avenue, Beaumont; and March 2, 1994, at 6:00 p.m. at the 
City of El Paso Council Chambers located at Two Civic Center Plaza, El Paso. 
 The hearings are structured for the receipt of oral and written comments by 
interested persons on the proposed changes. Interrogation or cross-examination 
is not permitted; however, a TNRCC staff member will be available to discuss the 
proposal one hour prior to each hearing. 
 Written comments not presented at the hearing may be submitted to the TNRCC, at 
P.O. Box 13087, Austin, 78711-3087 through March 1, 1994. Material received by 
the Mobile Source Section by 4:00 p.m. on that date will be considered by the 
Commission prior to any final action on the proposed revisions. Copies of the 
proposed revisions are available at the TNRCC, located at 12124 Park 35 Circle, 
Building E, Austin, Texas, and at all TNRCC regional offices. For further 
information, contact Dr. Basil Ubanwa at (512) 239-1473. 
 Persons with disabilities who have special communication or other accommodation 
needs who are planning to attend the hearings should contact Sherman Qualls at 
(512) 463-2188. Requests should be made as far in advance as possible. 
   
  30 TAC sec.114.11 
 
  (Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Natural 
Resource Conservation Commission or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.) 
   
  The repeal is proposed under the Texas Health and Safety Code (Vernon 1990), 
the Texas Clean Air Act (TCAA), sec.382.017, which provides the TNRCC with the 
authority to adopt rules consistent with the policy and purposes of the TCAA. 
The new rule implements the Federal Clean Air Act Amendments of 1990, Title I, 
Subpart 2, sec.182(c)(4). 
 
 
  sec.114.11. Alternative Fuel Requirements for Transit Authorities. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on January 21, 1994. 
 TRD-9435763 
  Mary Ruth Holder 
 Director, Legal Division 
 Texas Natural Resource Conservation Commission 
    Earliest possible date of adoption: May 4, 1994 
 For further information, please call: (512) 239-0615 
         
       
  The new rule is proposed under the Texas Health and Safety Code (Vernon 1990), 
the Texas Clean Air Act (TCAA), sec.382.017, which provides the TNRCC with the 
authority to adopt rules consistent with the policy and purposes of the TCAA. 
The new rule implements the Federal Clean Air Act Amendments of 1990, Title I, 
Subpart 2, sec.182(c)(4). 
 
 
  sec.114.11. Alternative Fuel Requirements for Motor Vehicle Fleets. 
 
  (a) Affected fleets. Owners and operators of the following categories of 
fleets, shall be required to convert alternatively fueled vehicles in accordance 
with the provision and schedules of this section: 
 
  (1)  metropolitan rapid transit authorities created under Texas Civil 
Statutes, Article 1118x; regional transportation authorities created under Texas 
Civil Statutes, Article 1118y; and city transportation departments created under 
Texas Civil Statutes, Article 1118z, located in consolidated metropolitan 
statistical areas or metropolitan statistical areas with populations of 350, 000 
or more, which have not met the National Ambient Air Quality Standards for 
ozone, carbon monoxide, nitrogen oxides, and/or inhalable particulate matter; 
   
  (2) the following fleets operating in the metropolitan statistical areas which 
are classified as serious, severe, or extreme in the nonattainment of the 
National Ambient Air Quality Standards: 
 
  (A) all fleets of 15 or more vehicles which are registered in, or located 
within, the covered nonattainment area (NAA); and 
   
  (B) all fleets of 15 or more vehicles located outside the covered NAA which 
operate 75% or more of their time within the NAAs. 
       
  (b) Fuel requirements. All fleet vehicles affected by this section shall be 
capable of being operated on alternative fuels, which are defined as follows: 
 
  (1) natural gas; 
   
  (2) liquified petroleum gas; 
   
  (3) methanol or methanol/gasoline blends of 85% (M85) or greater; 
   
  (4) ethanol or ethanol/gasoline blends of 85% (E85) or greater; 
   
  (5) electricity; or 
   
  (6) other alternative fuels approved by the Texas Natural Resource 
Conservation Commission (TNRCC). 
     
  (c) Fleet compliance schedules. 
 
  (1) For affected fleets under subsection (a)(1) of this section, fleet 
conversions to alternatively fueled vehicles shall be accomplished in accordance 
with the following schedule: 
 
  (A) 30% or more of fleet vehicles by September 1, 1994; 
   
  (B) 50% or more of fleet vehicles by September 1, 1996; and 
   
  (C) 90% or more of fleet vehicles by September 1, 1998. 
     
  (2) For affected fleets under subsection (a)(2) of this section, fleet 
conversions to alternatively fueled vehicles which meet a minimum of the low 
emission vehicle (LEV) standards shall be accomplished in accordance with the 
following schedule: 
 
  (A) 30% by September 1, 1998; 
   
  (B) 50% by September 1, 2000; and 
   
  (C) 90% by September 1, 2002. 
       
  (d) Accepted vehicle technologies. 
 
  (1) The percentage requirements set forth in subsection (c) of this section 
shall be met by alternatively fueled vehicles which are of original equipment 
manufacture (OEM) or a conversion system that is California Air Resources Board 
(CARB) certified, or for which the U.S. Environmental Protection Agency (EPA) 
has issued a letter recognizing compliance with established federal policy 
memoranda, or that is EPA certified under the Small Volume Manufacturers 
Certification Program (40 Code of Federal Regulation (CFR) sec.86.092-14)). 
   
  (2) All conversions under this section must comply with the provisions of 
sec.114.1(b)(3) of this title (relating to Maintenance and Operation of Air 
Pollution Control Systems or Devices Used to Control Emissions from Motor 
Vehicles) and all applicable federal and state safety standards. 
     
  (e)  Installer requirements. In addition to the requirements set forth in 
sec.114.1 of this title, any installer of alternative fuel conversion systems 
shall satisfy the following requirements. 
 
  (1) Installers shall utilize conversion systems certified for the specific 
engine family. 
   
  (2)  Installers must either obtain a certificate of conformity from EPA, in 
accordance with the Small Volume Manufacturers Certification Program (40 CFR 
86.092-14), or CARB certification for all conversion systems. 
   
  (3) Upon receipt of a certification of conformity under the Small Volume 
Manufacturers Certification Program administered by EPA, the installer and the 
conversion system manufacturer shall be considered as one entity for the 
purposes of warranty responsibilities under sec.206 and sec.207 and related 
enforcement provisions of the Federal Clean Air Act. 
     
  (f) Exhaust emission standards. The following LEV emission standards shall 
apply to the fleet vehicles listed in subsection (a)(2) of this section. 
 
  
   
  
  [graphic] 
     
  (g) Reporting requirements. Beginning September 1, 1994, for fleets referenced 
in subsection (c)(1) of this section and September 1, 1998, for fleets 
referenced in subsection (c)(2) of this section, affected fleet owners, 
operators, or managers shall annually provide and update the following 
information in a format approved by the TNRCC: 
 
  (1) company name, mailing address, telephone and FAX numbers, and the affected 
fleets physical location (street address) if different than the mailing address; 
   
  (2)  name, title, mailing address, and telephone number of the person 
responsible for local management of fleet; 
   
  (3) listing of the number of affected fleet vehicles by vehicle class; 
   
  (4) year, make, model, and certified emission standard of each affected 
vehicle; 
   
  (5) type of fuel each vehicle uses, including: 
 
  (A) whether the vehicle is dedicated, flexible-fueled, dual-fueled, or bi-
fueled; and 
   
  (B) if the vehicle is not a dedicated alternatively fueled vehicle, 
documentation demonstrating the vehicle has operated at least 90% of the time on 
an alternative fuel when in the NAA; and 
     
  (6) the status of any vehicle in the fleet exempted in accordance with 
subsection (i) of this section. 
     
  (h)  Recordkeeping. 
 
  (1) Owners and operators of fleets affected by this section shall maintain 
complete and accurate records and shall make such records available to the TNRCC 
or the regional agency having jurisdiction in the area upon request. The 
information in the records shall include, but shall not be limited to, the 
following: 
 
  (A) a copy of the information listed in subsection (g) of this section; 
   
  (B) written documentation verifying that each converted vehicle satisfies 
conversion requirements; 
   
  (C)  name, address, and telephone number of the conversion kit installer; and 
   
  (D) vehicle miles travelled, fuel consumed, maintenance and repair, and such 
other records as may be necessary for determining air quality benefits from 
alternative fuels. 
     
  (2) Replacement of lost, stolen, or otherwise missing emission certifications 
or installers identification certificates shall be the responsibility of the 
fleet manager. 
     
  (i)  Waiver and Exemption requirements. 
 
  (1) Any alternatively fueled vehicle which fails the appropriate 
Inspection\Maintenance test and is not repaired or waived will be prohibited 
from vehicle registration. 
   
  (2)  The requirements of this section may be waived for any fleet, for period 
of time up to two years, upon receipt of certification supported by evidence 
acceptable to the TNRCC that: 
 
  (A) the fleet will be operating primarily in an area which neither the fleet 
owner nor a fuel supplier has or can reasonably be expected to establish a 
refueling station for approved alternative fuels; 
   
  (B) the fleet is unable to acquire or be provided with equipment or refueling 
facilities necessary to operate vehicles using approved alternative fuels at a 
projected cost that is reasonably expected to result in no greater net costs 
than the continued use of traditional gasoline or diesel fuels measured over the 
expected useful life of the equipment or facilities supplied; or 
   
  (C) no applicable technology exists necessary for conversion of a vehicle to 
operate on approved alternative fuel or the establishment of an alternative fuel 
refueling station. 
     
  (3) The TNRCC may waive specific fleet vehicles from the requirements of this 
section, for the following specified periods of time, upon receipt of evidence 
demonstrating: 
 
  (A) lack of availability of conversion equipment (90 days); 
   
  (B) lack of technology in alternative fuel conversion equipment (two years); 
or 
   
  (C) lack of financing for vehicle conversions to approved alternative fuels 
(two years). 
     
  (4) The following vehicles and fleets are exempted from the requirements of 
this section: 
 
  (A) vehicles which operate outside of a NAA and do not meet the criteria set 
forth in subsection (a)(2) of this section; 
   
  (B)  off-road vehicles; 
   
  (C) emergency vehicles as defined in the Texas Motor Vehicle Code; and 
   
  (D) national security vehicles; 
   
  (E)  rental vehicles; 
   
  (F) vehicles offered for sale at licensed dealership; and 
   
  (G) law enforcement vehicles. 
     
  (5) All requests for waivers or exemptions from the requirements of this 
section will be administered by the TNRCC. 
     
  (j) Mobile Emission Reduction Credits. 
 
  (1) Fleets listed in subsection (a)(2) of this section may earn Mobile 
Emission Reduction Credits (MERCs) in the following ways: 
 
  (A) the acquisition, through purchase or conversion, of an alternative fuel 
vehicle earlier than required by subsection (c) of this section; 
   
  (B) the acquisition, through purchase or conversion, of more alternatively 
fueled vehicles than the number required by subsection (c) of this section for 
the year in which the vehicle was purchased; 
   
  (C) the acquisition, through purchase or conversion, of vehicles which are 
listed in subsection (i)(4) of this section, but which operate on alternative 
fuels and meet LEV standards established under subsection (f) of this section; 
or 
   
  (D) the purchase of, or conversion to alternative fuel, vehicles which meet 
TNRCC approved standards more stringent than the LEV standard. 
     
  (2) A MERC must list, by vehicle identification number, the vehicle for which 
a credit has been taken. 
   
  (3) MERCs may only be used within the same NAA. Covered fleets which earn 
credits may use them: 
 
  (A) to comply with fleet requirements listed in subsection (c)(3) of this 
section; 
   
  (B) to be sold, traded, or transferred for use by another fleet within the 
same NAA; 
   
  (C) to be without artificial emissions bank depreciation; or 
   
  (D) to be used to comply with other programs that the TNRCC deems appropriate. 
     
  (4)  MERCs generated by vehicles acquired before September 1, 1998, expire in 
accordance with the schedule in subsection (e)(2) of this section. 
   
  (5)  A credit for an additional alternative fuel vehicle acquired in 
accordance with subsection (j)(1)(B) of this section may not be used for any 
purpose, during a particular year, if the vehicle which it represents is counted 
by the fleet owner/operator toward compliance with the requirements of this 
section. 
   
  (6) All other uses of MERCs are governed by the rules applicable to emission 
credits in 30 TAC Chapter 114. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on January 21, 1994. 
 TRD-9435764 
  Mary Ruth Holder 
 Director, Legal Division 
 Texas Natural Resource Conservation Commission 
    Proposed date of adoption: May 4, 1994 
 For further information, please call: (512) 239-0615 
         
                   
  TITLE 31. NATURAL RESOURCES AND CONSERVATION 
 Part II. Texas Parks and Wildlife Department 
  Chapter 57. Fisheries 
  
  Marking of Vehicles 
 
  31 TAC sec.57.500 
 
  The Texas Parks and Wildlife Commission proposes an amendment to sec.57. 500, 
concerning the marking of vehicles that transport fish for commercial purposes. 
This amendment will correct a typographical error and amend the required marking 
of vehicles to allow two different types of marking. 
 Robin Riechers, staff economist, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section. 
 Mr. Riechers also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the correction of a typographical error in the proclamation and 
the simplification of the marking of commercial fish trucks by requiring only 
the rear of the truck to be marked instead of both sides and the rear. There 
will be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the section as proposed. 
 The Department has not filed a local employment impact statement with the Texas 
Employment Commission in compliance with the Administrative Procedure and Texas 
Register Act, sec.4A, as this agency has determined that the rule as proposed 
will not impact local economics. 
 Comments on the proposal may be submitted to Charles Hensley, Director of Law 
Enforcement, Texas Parks and Wildlife Department, 4200 Smith School Road, 
Austin, Texas 78744; (512) 389-4845 or 1 (800) 792-1112, extention 4845. 
 The amendment is proposed under Texas Parks and Wildlife Code, sec.66.014, 
which provides the Texas Parks and Wildlife Commission with the authority to 
regulate the identification of vehicles transporting aquatic products. 
 
 
  sec.57.500. Marking of Vehicles. 
 
  <nl>(a) All motor vehicles, trailers, or semitrailers transporting fish for 
commercial purposes shall exhibit the inscription "fish" on the [right, left, 
and] rear [sides] of the vehicle. The inscription shall read from left to right 
and shall be plainly visible at all times while transporting fish. The 
inscription "fish" shall be attached to or painted on the vehicle, trailer, or 
semitrailer in <nl>block<ol> [black] arabic letters of good proportion in 
contrasting color to the background and be at least <nl>six<ol> [eight] inches 
in height <nl>; or<ol>[.] 
   
  <nl>(b) motor vehicles, trailers, or semitrailers transporting fish for 
commercial purposes shall exhibit a single decal on the lower left rear portion 
of the vehicle. The decal shall be in the form designated in Figure 1 of this 
proclamation and be at least six inches square with an image of the State of 
Texas, white in color against a dark background in contrasting color to the 
vehicle or trailer. The decal shall be plainly visible at all times while 
transporting fish. 
 
  
   
  [graphic] 
         
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435696 
  Paul M. Shinkawa 
 Director, Legal Services 
 Texas Parks and Wildlife Department 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: 1 (800) 792-1112, Ext. 4433 or (512) 389-
4433 
         
           Part X. Texas Water Development Board 
  Chapter 353. Introductory Provisions 
  
  General Provisions 
 
  The Texas Water Development Board (board) proposes the repeal of 31 TAC 
sec.353.11, concerning Copies and Certificates, and adoption of new 31 TAC 
sec.353.11 concerning the board's charges for providing copies of public 
information as required by Chapter 428, Acts, 73rd Legislature, Regular Session 
(1993). The rules will specify the charges for copies, faxes, computer time, and 
other information. The rates for the various charges are based on the actual 
cost to the board. 
 Pamela Ansboury, Director of Finance, has determined that for each year of the 
first five years the section is in effect, there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
section. 
 Ms. Ansboury also has determined that for each year of the first five years the 
section is in effect, the public benefit anticipated as a result of enforcing 
the section will be to promote uniformity throughout state government for 
providing public information. There will be no effect on small businesses. There 
is no anticipated economic cost to persons. The board staff has determined that 
the rule will have no impact on local economics. 
 Comments on the proposal may be submitted to Lisa Adelman, Texas Water 
Development Board, Legal Division, P.O. Box 13231, Austin, Texas 78711-3231, 
(512) 475-2052. 
   
  31 TAC sec.353.11 
 
  (Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Water 
Development Board or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.) 
   
  The repeal is proposed pursuant to the Texas Water Code,  s6.101, which 
requires the board to adopt rules necessary to carry out its powers and duties, 
and Chapter 428, Acts, 73rd Legislature, 1993, which requires state agencies to 
adopt rules that specify the charges that the agency will make for copies of 
public records. 
 There are no statutes, articles, or codes affected by the amendments. 
 
 
  sec.353.11. Copies and Certificates. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435796 
  Suzanne Schwartz 
 General Counsel 
 Texas Water Development Board 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 463-7981 
         
       
  The new section is proposed pursuant to Texas Water Code, sec.6.101, which 
requires the board to adopt rules necessary to carry out its powers and duties, 
and Chapter 428, Acts, 73rd Legislature, 1993, which requires state agencies to 
adopt rules that specify the charges that the agency will make for copies of 
public records. 
 
 
  sec.353.11. Charges for Public Records. 
 
  (a) Definitions. The following words and terms, when used in this section, 
shall have the following meanings, unless the context clearly indicates 
otherwise. 
 
  (1) Nonstandard-size-Anything other than 8.5 inches by 11 inches or 8. 5 
inches by 14 inches. 
   
  (2) Readily available information-Information that already exists in printed 
form, or information that is stored electronically and is ready to be printed or 
copied without requiring any programming, or information that already exists on 
microfiche or microfilm, but not information that requires more than 15 minutes 
to locate or prepare for release. 
   
  (3) Standard-size-8.5 inches by 11 inches or 8.5 inches by 14 inches. 
   
  (4) TNRIS-The Texas Natural Resources Information System. 
     
  (b) Copy charge. 
 
  (1) The charge for standard-size reproductions, non-certified, readily 
available will be $.10 per page for 50 pages or less and $.85 for the first page 
and $.15 for each additional page for more than 50 pages, unless the public 
performs the copying and then the rate will be $.10 per page. 
   
  (2) The charge for standard-size reproductions, non-certified, not readily 
available will be $.70 for the first page and $.15 per page for subsequent pages 
plus labor costs of $18.50 per hour incurred. 
   
  (3) Certification of copies will add $1.00 to the total invoice for each 
certification required. 
     
  (c) Fax charge. 
 
  (1) The charge for a local fax is $.10 per page. 
   
  (2) The charge for a long distance fax in the same area code is $.50 per page 
and $1.00 for a different area code. 
     
  (d) Nonstandard-size reproductions. 
 
  (1) The charge for TNRIS maps is $5.00 per map. 
   
  (2) The charge for audio tapes is $5.00 per tape. 
   
  (3) The charge for microfilm and xerographic reproduction of 11 inches by 17 
inches or larger is $2.50 per page. 
     
  (e) Computer time. The charge for computer time is $71 per hour plus $18.50 
per hour for staff time but there is no charge for five minutes or less of 
computer time. 
   
  (f) TNRIS Cost Recovery Charges. 
 
  (1) The charge for census tract maps is $36.25. 
   
  (2) The charge for copying data to a 9-track tape is $60, which includes staff 
time, computer time, and a blank tape. 
   
  (3) The charge for census block maps is $5.00 plus $18.50 per hour for staff 
time. 
   
  (4) The charge for printouts is $.15 per page plus $18.50 per hour staff time 
plus $71 per hour computer time. 
   
  (5) The charge for diskette reproduction is $5.00 per diskette and an 
additional labor charge of $18.50 per hour if the reproduction involves 
extensive staff time or complex data manipulation. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435795 
  Suzanne Schwartz 
 General Counsel 
 Texas Water Development Board 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call:(512) 463-7981 
         
                     
  TITLE 34. PUBLIC FINANCE 
 Part III. Teacher Retirement System of Texas 
  Chapter 25. Membership Credit 
  
  Joint Service with Employees Retirement System 
 
  34 TAC sec.25.113 
 
  The Teacher Retirement System of Texas (TRS) proposes an amendment to 
sec.25.113, concerning the calculation of asset value to be made in transferring 
assets between TRS and the Employees Retirement System (ERS) when credit is 
transferred by a member from one system to the other. This amendment provides 
for the interagency procedures to be used in determining the amount of funds to 
be transferred between the agencies as required by Texas Government Code, 
sec.805.008. The amendment is proposed in order to comply with the requirement 
set forth in sec.805.008 that funds be transferred between the retirement 
systems at the time the annuity becomes payable and in order to resolve the 
question of how to fairly determine the value of the asset to be transferred in 
a manner that does not produce a consistent pattern of actuarial gains or losses 
and that is in accordance with sound actuarial principles. An amendment is also 
proposed to the section of the rule setting forth the purpose of the rule which 
will reflect the provision of a systematic method of funding the value of the 
service transferred. The amendments will facilitate the transfer of funds 
between the systems in a timely manner. 
 P. Michael Barron, chief financial officer, has determined that for the first 
five-year period the section is in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
section. 
 Mr. Barron also has determined that for each year of the first five years the 
section in effect the public benefit anticipated as a result of enforcing the 
section is that the law enacted by the 73rd Texas Legislature providing for the 
transfer of credit between TRS and ERS will be implemented in an orderly fashion 
to accomplish legislative intent and to preserve the actuarial soundness of TRS. 
There will be no effect on small businesses. There is no anticipated economic 
cost to persons who are required to comply with the section as proposed. 
 Comments on the proposed amendments to be considered by the executive director 
and the board of trustees must be submitted in writing within 30 days of 
publication of the proposed section in the Texas Register, to Wayne Blevins, 
Executive Director, Teacher Retirement System of Texas, 1000 Red River, Austin, 
Texas 78701-2698. 
 The amendment is proposed under the Texas Government Code, sec.825.102, which 
authorizes the Board of Trustees of the Teacher Retirement System to adopt rules 
for eligibility for membership, administration of the funds of the system, and 
the transaction of its business. The amendment is also proposed under the Texas 
Government Code, sec.805.009, which authorizes the Board of Trustees to adopt 
rules to administer the transfer law. 
 
 
  sec.25.113. Transfer of Credit Between TRS and ERS. 
 
  (a) Purpose. These rules are intended to implement the provisions of the 
Government Code, Chapter 805, concerning the transfer of credit between the 
Teachers Retirement System of Texas and the Employees Retirement System of Texas 
<nl>and to provide a systematic method of funding the actuarial value of the 
annuity resulting from transferred service. 
   
  (b)-(e) (No change.) 
   
  (f) <nl>Transfer of funds. The ERS and the TRS agree on the following method 
of transferring funds. Each system shall certify on a monthly basis the total 
dollar amount of annuities paid by the system which are attributable to service 
transferred pursuant to Government Code, Chapter 805. The amount certified shall 
exclude any portion of annuities paid consisting of post-retirement increases. 
Each system shall remit to the other system the amount certified within 30 days 
of receipt of such certification. It is recognized that adjustments will be made 
from month-to-month as a result of such things as administrative errors, the 
death of the annuitant or a beneficiary, return-to-work, and recovery from 
disability by an annuitant. The systems will jointly agree on the administrative 
and accounting procedures to be established in order to ensure the transfer of 
funds pursuant to this section.<ol> [Calculation of asset value. The value of 
assets transferred pursuant to these rules will be calculated on the basis of 
the 1983 Group Annuity Mortality Table and a discount rate necessary to 
determine the actuarial value of the benefit payable by the receiving system 
that represents the percentage of the total amount of the member's service 
credited in both systems that was credited in the transferring system. In the 
absence of an agreement by the two retirement systems, the "actuarial value" 
shall be based on a discount rate equal to the rate adopted by the receiving 
system for the actuarial value of it general benefit liabilities.] 
   
  (g)-(n) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435771 
  Wayne Blevins 
 Executive Director 
 Teacher Retirement System of Texas 
    Proposed date of adoption: March 15, 1994 
 For further information, please call: (512) 370-0506 
         
               Chapter 51. General Administration 
  
  34 TAC sec.51.1 
 
  The Teacher Retirement System of Texas (TRS) proposes an amendment to 
sec.51.1, concerning the determination of the amount and manner of compensation 
to advisory committee members. This amendment addresses the amount and manner of 
compensation for the regional credentialing committees and the Medical Advisory 
Committee. This amendment is proposed in order to comply with state law that may 
require a rule governing payments of members of these committees in order for 
TRS to receive these services which the board has found to be necessary for the 
performance of its duties. An amendment is also being made to reflect the 
recodification of Texas Civil Statutes, Article 6252-11c. 
 P. Michael Barron, TRS chief financial officer, has determined that for the 
first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section. The fiscal impact on TRS administered trust funds as 
a result of the proposed amendment would be as follows: $183,000 in 1994, 
$214,000 in 1995, $225,000 in 1996, $236,000 in 1997, and $248,000 in 1998. 
 Mr. Barron also has determined that for each year of the first five years the 
section in effect the public benefit anticipated as a result of enforcing the 
section will be to permit the TRS board of trustees to obtain appropriate advice 
in carrying out its fiduciary responsibilities. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the section as proposed. 
 Comments on the proposal to be considered by the executive director and the 
board of trustees must be submitted in writing within 30 days of publication of 
the proposed section in the Texas Register, to Wayne Blevins, Executive 
Director, Teacher Retirement System of Texas, 1000 Red River, Austin, Texas 
78701-2698. 
 The amendment is proposed under the Texas Government Code, sec.825.102, which 
authorizes TRS adopt rules governing the administration of its funds and the 
transaction of its business. 
 The amendment is also proposed under the Texas Government Code, sec.825.114, 
which specifically authorizes the rule. 
 
 
  sec.51.1. Advisory and Auxiliary Committees. 
 
  (a) The following committees are created for an indefinite period to advise or 
otherwise serve the retirement system and are deemed necessary to assist the 
Board of Trustees in performing its duties: 
 
  (1)-(2) (No change.) 
   
  (3) a Real Estate Finance Committee composed of investment professionals as 
provided by the retirement system's investment policies; [and] 
   
  (4) a Retirees Advisory Committee for the Texas Public School Retired 
Employees Group Insurance Program, composed as provided by the Insurance Code, 
Article 3.50-4, sec.6<nl>; <ol>[.] 
   
  <nl>(5) regional credentialing committees composed of health care 
practitioners as provided by the retirement system's health care network 
policies; and 
   
  <nl>(6) a Medical Advisory Committee composed of health care practitioners and 
administrators as provided by the retirement system's health care network 
policies. 
     
  (b) (No change.) 
   
  (c) Except for such retirement system personnel as may serve ex officio on 
such committees, the members of the Medical Board, Investment Advisory 
Committee, and Real Estate Finance Committee shall be paid, as independent 
contractors' fees and expenses in accordance with contracts negotiated by the 
executive director or his designee subject to the applicable resolutions, 
policies, and annual budget adopted by the Board of Trustees. <nl>The members of 
the credentialing committees and the Medical Advisory Committee may be paid fees 
and expenses in accordance with contracts negotiated by the executive director 
or his designee subject to the applicable resolutions, policies, and annual 
budget adopted by the Board of Trustees.<ol> To the extent <nl>advisory <ol> 
[such] committees are composed of independent contractors they are to be 
considered consultants employed by the retirement system under the authority 
recognized by  <nl>the Government Code,  s2254.024<ol> [Texas Civil Statutes, 
Article 6252-11c,  s2(a)]. 
   
  (d) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435772 
  Wayne Blevins 
 Executive Director 
 Teacher Retirement System of Texas 
    Proposed date of adoption: March 15, 1994 
 For further information, please call: (512) 370-0506 
         
               Part IV. Employees Retirement System of Texas 
  Chapter 71. Creditable Service 
  
  34 TAC sec.sec.71.5, 71.17, 71.19, 71.21 
 
  The Employees Retirement System of Texas (ERS) proposes amendments to 
sec.sec.71.5, 71.17, 71.19, and 71.21, concerning credit previously transferred 
from the Teacher Retirement System of Texas (TRS), credit for unused accumulated 
sick leave, and transfer of service between the ERS and the TRS. The amendments 
will implement legislation passed by the 73rd Legislature. 
 William S. Nail, general counsel, has determined that for the first five-year 
period the sections are in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the sections. 
 Mr. Nail also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be that employees will have a procedure for transferring 
service between the ERS and the TRS, employees will receive additional credit 
for accumulated sick leave, and the retirement systems will be provided a method 
for funding transfers between the ERS and the TRS. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the sections as proposed. 
 Comments on the proposal may be submitted to William S. Nail, General Counsel, 
P.O. Box 13207, Austin, Texas 78711-3207. 
 These amendments are proposed under the Government Code,  ssec.805.008, 805. 
009, and 815.102, which provide the ERS the authority to adopt rules for the 
administration of the funds of the retirement system. 
 <nl>Contact: Phillip A. Holder, 7800 Shoal Creek Boulevard, Austin, Texas 
78757, (512) 458-0100. 
 
 
  sec.71.5. Credit Previously Transferred from Teacher Retirement System (TRS) 
and Credit Transferred from TRS Pursuant to Texas Civil Statutes, Title 110B, 
sec.23.508. 
 
  (a) Credit for 4-1/2 months or more of service performed in a fiscal year 
under the Teacher Retirement Act prior to September 1, 1958 was transferred to 
the Employees Retirement System  <nl>(ERS)<ol> as one year of service credit. No 
credit was established for less than 4-1/2 months service in a fiscal year 
ending prior to September 1, 1958. 
   
  (b)  Service of 9 or more months in a fiscal year beginning after August 31, 
1958, was established as 12 months credit. All other service performed under TRS 
after August 31, 1958, was transferred to the <nl>ERS<ol> [Employees Retirement 
System] on a month-for-month basis. 
   
  (c) Credit for military service transferred from the <nl>TRS<ol> [Teacher 
Retirement System] is established in the <nl>ERS<ol> [Employees Retirement 
System] only if that military service was eligible for credit under provisions 
of Texas Civil Statutes, Title 110B, Subtitle C. 
   
  (d) Credit for service transferred from the <nl>TRS <ol> [Teacher Retirement 
System of Texas] to the  <nl>ERS<ol> [Employees Retirement System of Texas] 
pursuant to Texas Civil Statutes, Title 110B, sec.23.508, shall be established 
in the <nl>ERS<ol> [Employees Retirement System of Texas] on a month-for-month 
basis notwithstanding any other provision of this section. 
   
  <nl>(e) Credit for service transferred from the TRS to the ERS after Auqust 1. 
1993 shall be according to the rules adopted by the TRS for determining 
creditable service. 
 
     
  sec.71.17. Credit for Unused Accumulated Sick Leave. 
 
  (a)  Unused accumulated sick leave is creditable only in the employee class of 
membership and only so long as the last day of employment occurs during the 
month in which the retirement becomes effective. Credit for unused accumulated 
sick leave cannot be used to establish length of service requirements for 
purposes of retirement or death benefit plan eligibility. 
   
  (b) Before the amount of service credit can be determined, an authorized State 
agency official must certify on a form prescribed by the <nl>Employees 
Retirement System (ERS)<ol> [system] the amount of unused accumulated sick leave 
to the credit of the member on the last day of employment. 
   
  (c) Eligible sick leave credit will become effective as service credit only 
after retirement. Subject to that limitation and upon receipt of a certification 
pursuant to subsection (b) of this section, the <nl>ERS [system] shall grant any 
service credit to which a retiree is thereby entitled. An increase in the 
computation of an annuity because of sick leave credit shall be effective from 
the time of certification. 
   
  [(d) The amount determined necessary to fund the benefit shall be calculated 
and certified by the system to the State Comptroller or to the state agency head 
when such state agency's operating budget is from local funds. If funding for 
the benefit is inadequate or cannot be made to the system, the additional 
benefit will not be paid.] 
   
  <nl>(d) <ol>[(e)] The reserve factor tables used to calculate the amount 
required to [be paid by a state agency to] fund sick leave credit are described 
in sec.73.21(e) of this title (relating to Reduction Factor for Age and 
Retirement Option). 
   
  <nl>(d)<ol>[(f)] The percentage value of all service creditable in the 
employee class of membership shall not exceed 100%. 
 
     
  sec.71.19. Transfer of Service Between the Teacher Retirement System of Texas 
(TRS) and the Employees Retirement System of Texas (ERS). 
 
  (a)  Purpose. These rules are intended to implement the provisions of the 
Government Code, Chapter 805, concerning the transfer of credit between the 
<nl>TRS<ol> [Teacher Retirement System of Texas] and the <nl>ERS, and to provide 
a systematic method of funding the actuarial value of the annuity resulting from 
transferred service<ol> [Employees Retirement System of Texas]. 
   
  (b)-(d) (No change.) 
   
  (e) <nl>Transfer of funds. The ERS and the TRS agree on the following method 
of transferring funds. Each system shall certify on a monthly basis the total 
dollar amount of annuities paid by the system which are attributable to service 
transferred pursuant to the Government Code Chapter 805. The amount certified 
shall exclude any portion of annuities paid consisting of post-retirement 
increases. Each system shall remit to the other system the amount certified 
within thirty days of receipt of such certification. It is recognized that 
adjustments will be made from month-to-month as a result of such things as 
administrative errors, the death of the annuitant or a beneficiary, return-to-
work, and recovery from disability by an annuitant. The systems will jointly 
agree on the administrative and accounting procedures to be established in order 
to ensure the transfer of funds pursuant to this section.<ol> [Calculation of 
asset value. The value of assets transferred pursuant to these rules will be 
calculated on the basis of the 1983 Group Annuity Mortality Table and a discount 
rate equal to the yield for ten-year United States Treasury notes averaged 
during the August prior to the effective transfer date and rounded to the 
nearest 0.25%. The actuarial value of an annuity paid on the basis of these 
calculations will be determined as of the date the first payment is due.] 
   
  (f)-(i) (No change.) 
 
     
  sec.71.21. Transfer of Certain State Employees from the Teacher Retirement 
System of Texas TRS) to the Employees Retirement System of Texas (ERS). 
 
  (a) Purpose. These rules are intended to make clear that persons whose 
retirement system membership is transferred from the TRS to the ERS pursuant to 
Acts of the 73rd Legislature, 1993, will be members of the ERS for all purposes, 
including the retirement incentive, and will be subject to all applicable laws 
and ERS rules unless otherwise provided herein. <nl>These rules will provide a 
systematic method of funding the actuarial value of the annuity resulting from 
transferred service. 
   
  (b)-(d) (No change.) 
   
  (e) <nl>Transfer of funds. The ERS and the TRS agree on the following method 
of transferring funds. Each system shall certify on a monthly basis the total 
dollar amount of annuities paid by the system which are attributable to service 
transferred pursuant to the Government Code. Chapter 805. The amount certified 
shall exclude any portion of annuities paid consisting of post-retirement 
increases. Each system shall remit to the other system the amount certified 
within thirty days of receipt of such certification. It is recognized that 
adjustments will be made from month-to-month as a result of such things as 
administrative errors, the death of the annuitant, or a beneficiary, return-to-
work, and recovery from disability by an annuitant. The systems will jointly 
agree on the administrative and accounting procedures to be established in order 
to ensure the transfer of funds pursuant to this section.<ol> [Calculation of 
asset value. The value of assets transferred pursuant to these rules will be 
calculated on the basis of the 1983 Group Annuity Mortality Table and a discount 
rate equal to the yield for ten-year United States Treasury notes averaged 
during the August prior to the effective transfer date and rounded to the 
nearest 0.25%. The actuarial value of an annuity paid on the basis of these 
calculations will be determined as of the date the first payment is due.] 
   
  (f) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435735 
  Charles D. Travis 
 Executive Director 
 Employees Retirement System of Texas 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 867-3336 
         
             Chapter 73. Benefits 
  
  34 TAC sec.73.11, sec.73.21 
 
  The Employees Retirement System of Texas (ERS) proposes amendments to 
sec.73.11 and sec.73.21, concerning the supplemental retirement program and the 
reduction factor for age and retirement options. The amendments will take into 
consideration new assumption factors adopted by the board of trustees. 
 William S. Nail, general counsel, has determined that for the first five-year 
period the sections are in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the sections. 
 Mr. Nail also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be that retirements will be calculated based on new reserve 
tables utilizing new assumptions adopted by the board of trustees. There will be 
no effect on small businesses. There is no anticipated economic cost to persons 
who are required to comply with the sections as proposed. 
 Comments on the proposal may be submitted to William S. Nail, General Counsel, 
P.O. Box 13207, Austin, Texas, 78711-3207. 
 These amendments are proposed under Government Code, sec.815.105, which 
provides the ERS with the authority to adopt mortality, service, and other 
tables the board considers necessary for the retirement system. 
 
 
  sec.73.11. Supplemental Retirement Program. 
 
  (a) For the purpose of this section: 
 
  (1) "supplemental program" is the program of retirement benefits for 
commissioned peace officers and custodial officers established by the [Texas] 
Government Code, [Title 8,] sec.824.107. 
   
  (2) (No change.) 
     
  (b)-(c) (No change.) 
   
  (d) The reserve factors for retirements with an effective date of January 31, 
1991 through August 31, 1991, shall be those developed by the actuaries and 
based on the actuarial assumptions adopted by the board [of trustees] in 
September 1990. Reserve factors for retirements after September 1, 1991, based 
on the actuarial assumptions adopted by the board [of trustees] in September 
1990, shall be those developed by the actuaries to recognize the pop-up feature. 
<nl>Reserve factors for retirements with an effective date after September 1, 
1993 shall be based on the assumption factors adopted by the board in January 
1994.<ol> Reserve factors for disability retirement annuities effective after 
September 1, 1991, shall be based on assumptions developed by the actuaries and 
adopted by the board [of trustees] in November 1991. The reserve factors are 
adopted by reference and made a part of this rule for all purposes. Copies of 
these tables are available from the executive director of the Employees 
Retirement System of Texas at 18th and Brazos Streets, P.O. Box 13207, Austin, 
Texas, 78711-3207. 
   
  (e)-(f) (No change.) 
 
     
  sec.73.21. Reduction Factor for Age and Retirement Option. 
 
  (a)-(c) (No change.) 
   
  (d) Reserve factors. 
 
  (1) (No change.) 
   
  (2) The reserve factors for retirements with an effective date of January 31, 
1991[,]-August 31, 1991<nl>, <ol> shall be those developed by the actuaries and 
based on the actuarial assumptions adopted by the board [of trustees] in 
September 1990. Reserve factors for retirements after September 1, 1991, based 
on the actuarial assumptions adopted by the board [of trustees] in September 
1990, shall be those developed by the actuaries to recognize the pop-up feature 
[and optional disability retirement annuities]. <nl>Reserve factors for 
disability retirement annuities effective after September 1, 1991 shall be based 
on assumptions developed by the actuaries and adopted by the board in November 
1991.<ol> The reserve factors are adopted by reference and made a part of this 
rule for all purposes. Copies of these reserve tables are available from the 
executive director of the Employees Retirement System of Texas at 18th and 
Brazos Streets, P.O. Box 13207, Austin, Texas, 78711-3207. 
     
  (e) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435736 
  Charles D. Travis 
 Executive Director 
 Employees Retirement System of Texas 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 867-3336 
         
           
  34 TAC sec.73.23 
 
  (Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Employees 
Retirement System of Texas or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin.) 
   
  The Employees Retirement System of Texas (ERS) proposes the repeal of 
sec.73.23 concerning benefits. 
 William S. Nail, general counsel, has determined that for the first five-year 
period the repeal is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the repeal. 
 Mr. Nail also has determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated as a result of enforcing the 
repeal will be the deletion of an unnecessary rule. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the repeal proposed. 
 Comments on the proposal may be submitted to William S. Nail, General Counsel, 
P.O. Box 13207, Austin, Texas, 78711-3207. 
 The repeal is proposed under Government Code, sec.815.105, which provides the 
ERS with the authority to promulgate rules the board considers necessary for the 
retirement system. 
 
 
  sec.73.23. Transferred Service Salary Average. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435734 
  Charles D. Travis 
 Executive Director 
 Employees Retirement System of Texas 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 867-3336 
         
           Chapter 75. Hazardous Profession Death Benefits 
  
  34 TAC sec.75.1 
 
  The Employees Retirement System of Texas (ERS) proposes an amendment to 
sec.75.1, concerning the filing of claims by survivors of certain law 
enforcement officers, fire fighters, and others. The amendment will implement 
legislation passed by the 73rd Legislature to provide for payment of benefits to 
adoptive parents of a minor, as well as to the natural parents. 
 William S. Nail, general counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing of administering the section. 
 Mr. Nail also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be that adoptive parents will receive benefit payments on behalf of 
a minor child. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the section 
as proposed. 
 Comments on the proposal may be submitted to William S. Nail, General Counsel, 
P.O. Box 13207, Austin, Texas, 78711-3207. 
 This amendment is proposed under the Government Code, sec.615.002 which 
provides the ERS with the authority to adopt rules for the administration of the 
chapter. 
 
 
  sec.75.1. Filing of Claims. 
 
  (a)-(d) (No change.) 
   
  (e) Payment on behalf of a minor child will be made only to a surviving 
natural parent with custody of the child,  <nl>to a surviving adoptive parent 
with custody of the child,<ol> or to a court-appointed guardian of the child's 
estate. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435733 
  Charles D. Travis 
 Executive Director 
 Employees Retirement System of Texas 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 867-3336 
         
                 
  TITLE 37. PUBLIC SAFETY AND CORRECTIONS 
 Part VII. Texas Commission on Law Enforcement Officer Standards and Education 
  Chapter 211. Administration Division 
  
  37 TAC sec.211.65 
 
  The Texas Commission on Law Enforcement Officer Standards and Education 
("commission") proposes an amendment to sec.211.65, concerning academy 
licensing. The amendment to sec.211.65 establish required training and the 
maintaining thereof to be conducted by the commission or by and through other 
agencies and institutions. Because of the volume of required training, the 
commission has determined that the most effective method of accomplishing the 
training mandate is through the use of licensed academies. 
 Mr. Fred Toler, interim executive director to the commission, has determined 
that for the first five-year period the proposed amendment is in effect, there 
will be no major fiscal implications for state or local government as a result 
of enforcing or administering this section. No increase or decrease in costs nor 
increase or loss of revenue to state or local government is expected as a result 
of enforcing or administering this section. 
 Mr. Toler also has determined that for each year of the first five years this 
section is in effect, the public benefit anticipated as a result of enforcing 
this section will be the delivery of quality training to provide the citizens of 
Texas a better-trained law enforcement community. There will be no effect on 
small businesses nor anticipated economic costs to persons who comply with this 
section as proposed. 
 Comments on the proposal may be submitted to Truman Lewis, Assistant Director, 
Texas Commission on Law Enforcement Officer Standards and Education, 1033 La 
Posada, Suite 240, Austin, Texas 78752. 
 The amendment is proposed under the Texas Government Code, Chapter 415, 
sec.sec.415.010(1), 415.031, 415. 032, and 415.033, which provide the commission 
with the authority to pass rules for the administration of Chapter 415, and 
under the Texas Government Code, Chapters 2001 and 2002, which taken together 
establish the procedures for the rulemaking requirements for the commission. 
 The rule implements Texas Government Code, Chapter 415. 
 
 
  sec.211.65. Academy Licensing 23>, Operations, and Evaluation . 
 
  (a) The commission may issue an academy license to an academy that is operated 
by or for the state or any political subdivision of the state for the specific 
purpose of <nl>providing law enforcement and/or corrections training<ol> 
[training officers or jailers]. 
   
  (b)  <nl>Prior to being issued<ol> [To be issued] an academy license, an 
academy must pass an inspection of its facilities and instructional materials 
and must submit for commission approval: 
 
  (1) a completed, written application on a commission form that is signed by 
the chief administrator or head of the organization exercising administrative 
control over the academy; 
   
  (2) a resolution of support from the governing body of the sponsoring 
organization; 
   
  (3) the formal name of the academy, which must not misrepresent the status of 
the academy or be confusing to law enforcement or to the public; 
   
  (4) a proposed startup and operational budget and a proposed course schedule 
to show that training will be conducted on a continuing basis; 
   
  (5) evidence that an advisory board has already been appointed as provided 
<nl>by sec.415.031 of the Government Code <ol> [by law and rule] <nl>,<ol> 
including a  <nl>resume for each board member<ol> [list of board members and a 
brief recitation of their current titles and qualifications]; 
   
  (6) any advisory board minutes necessary to show the decisions which have been 
made by that board in all areas required by the commission; 
   
  (7) the name <nl>,<ol> [and] social security number  <nl>and resume<ol> of the 
proposed training coordinator and any <nl>academy staff instructors, and a list 
of instructors who are scheduled to teach the submitted proposed course 
schedule; <ol> [course coordinators or instructors who will be available to the 
academy, including any license documentation that may be requested by the 
commission; and] 
   
  (8) evidence that the academy will be, based on the characteristics of the 
sponsoring organization, at least one of the following: 
 
  (A) an agency academy, conducted by a law enforcement agency that has at least 
50 full-time <nl>paid<ol> peace officers <nl>and/or county jailers<ol> under 
current appointment; 
   
  (B) a college academy, conducted by an institution coordinated by the Texas 
Higher Education Coordinating Board; or 
   
  (C) a regional academy, conducted or sponsored by a regional planning 
<nl>commission<ol> or council of governments (COG) board<nl>;<ol>[.] 
     
  <nl>(1) The commission will only issue one regional academy license within 
each regional planning commission or council of governments area at any one 
time. 
   
  <nl>(2) To be or remain a regional academy, that particular academy must 
substantially meet the training needs of all current or prospective license 
holders who reside in that region and do not attend an agency academy or college 
academy. 
   
  <nl>(9)  certification that the academy meets the requirements of the 
Americans with Disabilities Act (ADA), to which its entity is subject, and as 
those requirements apply to the academy's function (including course materials, 
course presentation, and facilities). The certification will represent that the 
academy will maintain this compliance during the term of the license. 
   
  <nl>(10) the physical location and a description of the proposed training 
facility; and 
   
  <nl>(11) a comprehensive training needs assessment justifying the need for an 
additional academy in the regional planning commission or council of governments 
area in which the proposed academy is located. The needs assessment must include 
as a minimum: 
 
  <nl>(A) a description of whom the academy will serve, including the identity 
of each law enforcement agency the academy expects to serve, the number of 
officers the academy expects to train annually from each agency, and the basis 
for the academy's expectations; 
   
  <nl>(B) a schedule of tuition and fees, if any, that will be charged; 
   
  <nl>(C) a description of existing law enforcement training programs in the 
proposed service area and evidence justifying the need for an additional 
academy; 
   
  <nl>(D) the number and types of courses that will be offered; 
   
  <nl>(E) what specific training need(s) are not currently being provided by 
licensed academies in the regional planning commission or council of governments 
area; and 
   
  <nl>(F) applicant must show proof of notification by certified mail to all 
licensed academies within the regional planning commission or council of 
governments area of their intent to apply for academy license and what specific 
training needs are not currently being met within the region. 
       
  <nl>(c) The pre-licensing inspection of the academy's facilities and 
instructional material shall be conducted by the commission. The commission may 
appoint an inspection team composed of persons with experience in the field of 
law enforcement education and training. <ol>[The commission will only issue one 
regional academy license within each COG area at any one time. 
   
  [(d) To be or remain a regional academy, that particular academy must 
substantially meet the training needs of all current or prospective license 
holders who reside in that region and do not attend an agency or college 
academy. 
   
  [(e) A licensed academy must be inspected by the commission before licensing 
and may, after licensing, be inspected at any time. The commission may appoint 
an inspection team composed of persons with experience in the field of law 
enforcement education or others and at least one member of the commission 
staff.] 
   
  <nl>(d)<ol>[(f)] To pass <nl>a pre-licensing<ol> [an] inspection, an academy 
must have <nl>and maintain <ol> [, or have access to, and must maintain]: 
 
  (1) a <nl>classroom that is sufficiently air-conditioned and heated, well lit, 
free of noise and other unreasonable distractions, and of sufficient size for 
the number of students to be served <ol> [reasonably comfortable classroom 
and/or testing facility that is: 
 
  [(A) sufficiently air conditioned and heated; 
   
  [(B)  well lit; and 
   
  [(C) free of noise or other unreasonable distractions; 
     
  [(2) a reasonably safe firearms range capable of meeting the firearms 
instruction requirements of the basic peace officer course; and] 
   
  <nl>(2)<ol>[(3)] <nl>instructors and adequate instructional resources <ol> 
[sufficient instructors and instructional material, devices, and equipment 
necessary] to conduct effective training<nl>; <ol> [.] 
   
  <nl>(3)  adequate and convenient restrooms, breakroom, and parking area; 
   
  <nl>(4) adequate and convenient law enforcement reference library for student 
and staff use; and 
   
  <nl>(5) must have access to an all-weather accessible firing range suitable 
for the course of fire required in the basic peace officer course with safety 
rules clearly posted, and adequate restrooms and first aid equipment on the 
premises. 
     
  <nl>(e) The chief administrator or head of the organization exercising 
administrative control of the academy and the proposed training coordinator must 
appear before the commissioners to respond to any questions prior to any action 
being taken on the application. 
   
  [(g) All academy licenses must be formally approved by the commissioners upon 
recommendation of the staff and after the applicant has had an opportunity to be 
heard.] 
   
  <nl>(f)<ol>[(h)] A training coordinator must hold a valid instructor license 
and must be paid and assigned on a full-time basis. <nl>To be considered paid 
and assigned on a full-time basis, the training coordinator must be a full-time 
paid employee of the agency/institution. If the coordinator has additional job 
responsibilities other than the academy, one or more professional personnel must 
be assigned full-time as academy training/educational staff.<ol> [However, the 
commission may, in the discretion of the executive director, waive any part of 
this requirement in an unusual case if the training coordinator is able to 
discharge all responsibilities set by commission rules.] 
   
  <nl>(g)<ol>[(i) ] The training coordinator of an academy must: 
 
  (1) prepare, maintain, and <nl>submit the following reports within the time 
frame specified:<ol> [make timely submission of any required report or other 
record;] 
 
  <nl>(A) Reports of training -to be submitted within 30 days of completion of 
each course; 
   
  <nl>(B) Quarterly training summaries -to be submitted within 10 days of the 
close of the reporting period; 
   
  <nl>(C)  Advisory board minutes-to be submitted within 10 days of board 
approval; 
   
  <nl>(D) Quarterly training calendars -to be submitted no later than 10 days 
prior to the beginning of each calendar quarter; and 
   
  <nl>(E)  any other reports or records as requested by the commission; 
     
  (2)  receive all commission <nl>notices <ol> [notice] on behalf of the academy 
and forward each notice to the   [person who appointed him or maintains his 
appointment; and] 
   
  (3) be responsible for the administration and conduct of each course, 
including <nl>those conducted at ancillary sites and <ol> specifically: 
 
  (A) appointing and supervising qualified [course coordinators and] 
instructors; 
   
  (B)  maintaining course schedules <nl>and course files<ol>; 
   
  (C)  securing and maintaining <nl>all facilities <ol> [any facility] necessary 
to meet the inspection standards of this section; 
   
  (D) enforcing <nl>all<ol> [any] admission, attendance, retention, <nl>and<ol> 
[or] other <nl>standards<ol> [standard] set by the advisory board; 
   
  (E)  distributing learning objectives <nl>to all students<ol> and insuring 
that all learning objectives are taught, that all training is effective, and 
that no required instruction periods are consumed by matters that are frivolous 
or unrelated to the scheduled training; 
   
  (F) controlling the discipline and demeanor of each student <nl>and<ol> [or] 
instructor during class; <nl>and 
   
  (G) proctoring or supervising all examinations to insure fair, honest results; 
   
  [(H) making a final report of training to the commission within 30 days after 
completion of each course; and 
   
  [(I)  making any report or providing information as required by the advisory 
board.] 
     
  <nl>(4) attend or have his or her designee attend each academy coordinator's 
workshop conducted by the commission. 
     
  <nl>(h) <ol>[(j)] <nl>The chief administrator of the academy of the sponsoring 
agency<ol> [A licensed academy] must report  <nl>in writing<ol> to the 
commission <nl>within 10 days<ol>: 
 
  (1) any change in training <nl>coordinator <ol> [or course coordinators or 
instructors]; 
   
  (2) any substantial failure to meet the inspection standards; [or] 
   
  (3) any rule violation by it or by its training [or course] coordinator, 
<nl>instructors<ol> [instructor], or advisory board;[.] 
   
  <nl>(4) when non-compliance with ADA requirements is discovered; or 
   
  <nl>(5) any change in academy name, physical location, mailing address or 
telephone number. 
     
  <nl>(i)<ol>[(k)] The  <nl>commissioners<ol> [commission] may cancel an academy 
license if it was issued in error or based on false or incorrect information. 
   
  <nl>(j)<ol>[(l)] The  <nl>commissioners<ol> [commission] may suspend an 
academy license, or <nl>the executive director or his designee may<ol> issue a 
written reprimand to the sponsoring agency, if: 
 
  (1)  <nl>the academy or the sponsoring agency<ol> [it] fails to comply with a 
commission rule or law; <nl>or 
   
  (2) <nl>the academy receives a rating of "below expectations" or 
"unacceptable" on any component in the academy evaluation process. If the 
academy receives a rating of "below expectations" or "unacceptable", the chief 
administrator of the academy or the sponsoring agency must report to the 
commission in writing within 30 days what steps have been taken to correct 
deficiencies and on what date they expect to be in compliance. <ol> [it 
demonstrates inadequate supervision or instruction;] 
   
  [(3) it is ineffective due to inadequate facilities or it fails an inspection; 
   
  [(4) it fails to maintain the appointment of a qualified training coordinator 
for more than 30 days; 
   
  [(5) its name status changes; 
   
  [(6) its training coordinator makes a false report to the commission or fails 
to comply with any commission rule; or 
   
  [(7) it has an inactive advisory board that has failed to: 
 
  [(A) meet with a quorum at least once during a calendar year; 
   
  [(B) maintain a quorum of appointed members; or 
   
  [(C) review or update training needs or curricula.] 
       
  <nl>(k)<ol>[(m)] The  <nl>commissioners<ol> [commission] may revoke an academy 
license if: 
 
  (1) it <nl>has received two or more suspensions and/or reprimands within a 12-
month period;<ol> [no longer offers courses on a continuing basis, fails to 
offer training for more than six months, or offers training insufficient for its 
region or any sponsoring organization;] 
   
  (2) <nl>its training coordinator <ol> [one of its administrators] 
intentionally or knowingly  <nl>submits a falsified document or a false written 
statement or representation to the commission<ol> [violates a commission rule]; 
or 
   
  (3) it has received <nl>a rating of "below expectations" or "unacceptable" on 
the same component in the academy evaluation process on two successive 
evaluations.<ol> [more than two suspensions or reprimands within a four-year 
period.] 
     
  <nl>(l)<ol>[(n)]  <nl>An academy may voluntarily surrender its license at any 
time for any reason. To voluntarily surrender its license, an academy's chief 
administrator must send written notice, accompanied by the license, to the 
executive director. The license is surrendered effective immediately upon 
receipt by the executive director.<ol> [A licensed academy must distribute to 
every student in an approved course a copy of the learning objectives for that 
course before it is taught. These learning objectives may also be divided by and 
then distributed before each major unit is taught. However, they must be either 
provided or approved by the commission or, if not, must be kept on file for at 
least five years.] 
   
  <nl>(m)<ol>[(o)] The commission will [approve each course taught by an academy 
and will] award [any basic or in-service] training credit <nl>for any course 
conducted by a licensed academy<ol> as provided by commission rules [for any 
such course] unless: 
 
  (1) the course is not taught as <nl>required by commission rules and <ol> 
[provided by] the advisory board; <nl>or 
   
  (2) the training is not related to a commission license; or 
   
  (3) the advisory board, the academy, the training coordinator, the course 
coordinator, or the instructor substantially failed to discharge any 
responsibility required by <nl>commission <ol> rule. 
     
  <nl>(n) If the position of training coordinator becomes vacant, the commission 
may at the discretion of the executive director and upon petition of the chief 
administrator of the academy or sponsoring agency waive the requirement for a 
full-time paid and assigned coordinator for a period not to exceed six months. 
   
  <nl>(o) After licensing, the academy may be inspected by the commission at any 
time and will be evaluated periodically, as determined by the commission. The 
inspection may be accomplished by commission staff or by training professionals 
selected and trained by commission staff. 
 
  <nl>(1) The evaluation program consists of four components: 
 
  <nl>(A) Analysis-a rating will be assigned based on the overall class average 
on all licensing exams taken by students of the academy. If an academy does not 
offer these types of courses this component will not be applicable; 
   
  <nl>(B) Compliance-commission records will be reviewed to determine if an 
academy is in compliance with the commission rules and regulations; 
   
  <nl>(C) Assessment-an on-site inspection of all facilities, equipment, and 
instructional materials as well as an inspection of the academy's management 
documentation will be conducted; and 
   
  <nl>(D)  Appraisal-a classroom observation and instructor evaluation will be 
conducted. 
     
  <nl>(2) An overall evaluation of the academy will then be made based upon the 
ratings of the four components. The academy training coordinator and chief 
administrator will be notified of the results and any recommendations or action 
to be taken. 
     
  <nl>(p) The effective date of this section is February 1, 1989. <nl>The 
effective date of subsections (a) -(o) of this section as amended is September 
1, 1994. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435686 
  Fred Toler 
 Interim Executive Director 
 Texas Commission on Law Enforcement Officer Standards and Education 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 450-0188 
         
                 
  TITLE 43. TRANSPORTATION 
 Part I. Texas Department of Transportation 
  Chapter 13. Materials and Tests Division 
  
  43 TAC sec.13.2 
 
  (Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Department 
of Transportation or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.) 
   
  The Texas Department of Transportation proposes the repeal of sec.13.2, 
concerning Concrete Admixtures. Section 13.2 requires the department to test 
concrete admixtures prior to use on department projects. Pre-testing of concrete 
admixtures is no longer necessary due to the adoption of a department standard 
specification which requires all admixtures to be in compliance with all 
requirements specified in the American Society for Testing and Materials 
standards. The repeal of this section eliminates the requirement for department 
testing prior to use. 
 Katherine Hargett, P.E., director, Materials and Tests Division, has determined 
that for the first five-year period the repeal is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the repeal. 
 Ms. Hargett has certified that there will be no significant impact on local 
economies or overall employment as a result of enforcing or administering the 
proposed repeal. 
 Ms. Hargett also has determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated as a result of enforcing the 
repeal will be a more efficient procedure which will allow more expeditious 
approval of many new concrete admixtures. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the repeal as proposed. 
 Pursuant to the Administrative Procedure Act, the Government Code, Chapter 
2001, the Texas Department of Transportation will conduct a public hearing to 
receive comments concerning the proposed repeal. The public hearing will be held 
at 9:00 a.m. on February 28, 1994, in the first-floor hearing room of the Dewitt 
C. Greer State Highway Building, 125 East 11th Street, Austin, Texas, and will 
be conducted in accordance with the procedures specified in 43 TAC sec.1.5. 
Those desiring to make comments or presentations may register starting at 8:30 
a.m. Any interested person may appear and offer comments, either orally or in 
writing, however, questioning of those making presentations will be reserved 
exclusively to the presiding officer as may be necessary to ensure a complete 
record. While any person with pertinent comments will be granted an opportunity 
to present them during the course of the hearing, the presiding officer reserves 
the right to restrict testimony in terms of time and repetitive content. 
Organizations, associations, or groups are encouraged to present their commonly 
held views, and same or similar comments, through a representative member where 
possible. Presentations must remain pertinent to the issue being discussed. A 
person may not assign a portion of his or her time to another speaker. A person 
who disrupts a public hearing must leave the hearing room if ordered to do so by 
the presiding officer. Persons with disabilities who have special communication 
or accommodation needs and who plan to attend the hearing may contact Eloise 
Lundgren, Director of the Public Information Office, at 125 East 11th Street, 
Austin, Texas 78701-2383, (512) 463-8588. 
 Written comments on the proposed amendments may be submitted to Katherine 
Hargett, P.E., Director of Materials and Tests Division, Texas Department of 
Transportation, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for 
receipt of written comments will be at 5:00 p.m. on March 14, 1994. 
 The repeal is proposed under Texas Civil Statutes, Article 6666, which provide 
the Texas Transportation Commission with the authority to promulgate rules for 
the conduct of the work of the Texas Department of Transportation. 
 
 
  sec.13.2. Concrete Admixtures. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 4, 1994. 
 TRD-9435701 
  Diane L. Northam 
 Legal Administrative Assistant 
 Texas Department of Transportation 
    Earliest possible date of adoption: March 14, 1994 
 For further information, please call: (512) 463-8630 
         
    Texas Department of Insurance Exempt Filing  
  Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L 
 
  (Editor's Note: As required by the Insurance Code, Article 5.96 and 5. 97, the 
Texas Register publishes notice of proposed actions by the Texas Board of 
Insurance. Notice of action proposed under Article 5.96 must be published in the 
Texas Register not later than the 30th day before the board adopts the proposal. 
Notice of action proposed under Article 5.97 must be published in the Texas 
Register not later than the 10th day before the Board of Insurance adopts the 
proposal. The Administrative Procedure Act, the Government Code, Chapters 2001 
and 2002, does not apply to board action under Articles 5.96 and 5.97. 
 The complete text of the proposal summarized here may be examined in the 
offices of the Texas Department of Insurance, 333 Guadalupe Street, Austin, 
Texas 78714-9104.) 
   
  The Commissioner of Insurance, at a meeting scheduled for 9:00 a.m., March 21, 
1994, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe 
Street in Austin, Texas, will consider a proposal filed on behalf of the Texas 
Automobile Insurance Service Office (TAISO). TAISO's petition proposes 
amendments to the Texas Automobile Rules and Rating Manual (the Manual). These 
amendments were proposed in a petition (Reference Number A-0294-03), filed by 
TAISO on December 31, 1993. 
 One proposed amendment would add a new paragraph 12 to Subsection D of Manual 
Rule 57 to provide that liability coverage extends to a trailer used with, or 
pulled by, a covered private passenger auto or utility vehicle if the trailer is 
not customarily used for business purposes with another type auto. This coverage 
is available without charge, and without describing the trailer in the policy. 
This amendment is needed in order to clarify when coverage extends to trailers. 
The Business Auto Coverage Form was previously amended to provide for this 
coverage. 
 Another proposed amendment would delete a paragraph from Subsection G of Manual 
Rule 55. That paragraph currently provides that either a Certificate of 
Insurance Form E-1 (Involuntary) or a Form E-2 (Voluntary) is required to be 
filed with the Railroad Commission. This paragraph leads to unnecessary 
confusion in that it implies that voluntary insurers must always file a Form E-
2, but this filing is not always required by law. Instead, the Railroad 
Commission requires a Form E-2 to be filed by a voluntary insurer only when 
multiple policies are written, or when the limit of insurance is less than 
$500,000. 
 The remaining proposal would amend endorsement TE 04 09C of the Manual and 
would redesignate it as TE 04 09D. This amendment is necessary in order to 
clarify that property damage means loss of "use of" a covered auto rather than 
"loss of" a covered auto. The words "use of" were inadvertently omitted from 
this endorsement when it originally was proposed in 1987. 
 A copy of the petition containing the full text of these proposed amendments to 
the Manual is available for review in the office of the Chief Clerk of the Texas 
Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For 
further information or to request copies of the petition, please contact Angie 
Arizpe at (512) 322-4147; refer to (Ref. No. A-0294-03). 
 The staff and the Commissioner request that written comments to these proposed 
amendments be submitted prior to the public meeting on March 21, 1994. The 
written comments should be directed to Linda K. von Quintus-Dorn, Chief Clerk, 
Texas Department of Insurance, P.O. Box 149104, MC 113-2A, Austin, Texas 78714-
9104. An additional copy of the comment is to be submitted to David Durden, 
Deputy Commissioner, Property and Casualty Insurance Lines, Texas Department of 
Insurance, P.O. Box 149104, MC 103-1L, Austin, Texas 7714-9104. The Commissioner 
may exercise his discretion and render a decision in the meeting based solely on 
written comments. 
 This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure Act. 
   
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435777 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
    For further information, please call: (512) 463-6328 
         
   
  The Commissioner of Insurance or his designee at a public hearing under Docket 
Number 2087 scheduled for March 21, 1994, at 9:00 a.m. in Room 100 of the Texas 
Department of Insurance Building, 333 Guadalupe Street in Austin, Texas, will 
consider amendments proposed by the staff of the Workers' Compensation Division 
to the Texas Basic Manual of Rules, Classifications and Experience Rating Plan 
for Workers' Compensation and Employers' Liability Insurance (Manual) pertaining 
to the calculating of experience modifiers and the making of ownership rulings 
by the insurance companies. 
 The following is a summary of the proposed amendments to the rules in the 
Manual: 
  (1) The proposed rules require that the company insuring all or part of a risk 
must calculate the experience modifier using the formula, rules and forms set 
forth in the Manual. A copy of the calculation of the modifier and all unit 
statistical data must be furnished to the insured, without a charge. 
  (2) An insurance company requesting a copy of either unit statistical data or 
a copy of an insured's experience modifier calculation from another insurance 
company must have a letter of authority from the insured. An insurance company 
receiving a request for this information must respond to the request in a timely 
manner, but in all instances within 30 days of receipt of the request. Again, no 
charge can be made for this information. 
  (3) The rules also provide for an appeal process to the Texas Department of 
Insurance if issues pertaining to experience rating or ownership rulings cannot 
be resolved between the affected parties. 
  (4) The Supplement to the Experience Rating Plan still allows a separate Texas 
modifier to be calculated for a risk subject to interstate rating. The request 
for the separate Texas modifier must be made to the insuring company and if 
calculated, is applicable for the full rating period for which the modifier was 
calculated. 
  (5) The insuring company is responsible for making ownership rulings once the 
required information is received. 
  (6) In addition to recommended changes in the rules, one endorsement and four 
forms have been amended to reflect the changes in the rules. 
  (7) The staff is recommending an effective date of May 1, 1994 for the 
proposed amendments. 
 A copy of the amendments containing the full text of the proposed amendments is 
available for review in the office of the Chief Clerk of the Texas Department of 
Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For further 
information or to request copies of the amendments, please contact Angie Arizpe 
(512)322-4147, (refer to Reference Number W-0294-04). 
 The staff and the Commissioner request that written comments to these proposed 
amendments be submitted prior to the public hearing on March 21, 1994. The 
written comments should be directed to Linda K. von Quintus-Dorn, Chief Clerk, 
Texas Department of Insurance, P.O. Box 149104, MC 113-2A, Austin, Texas 78714-
9104. An additional copy of the comment is to be submitted to Nancy Moore Deputy 
Commissioner, Workers Compensation, Texas Department of Insurance, P.O. Box 
149104, MC 202-1A, Austin, Texas 78714-9104, Public testimony at the hearing on 
March 21, 1994, is also invited and encouraged. 
 This notification is made pursuant to the Texas Insurance Code, Article 5. 96, 
which exempts it from the requirements of the Administrative Procedure Act. 
   
  The agency hereby certifies that the proposal has been reviewed by the legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on February 7, 1994. 
 TRD-9435776 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
    For further information, please call: (512) 463-6328