ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 7. BANKING AND SECURITIES Part IV. Texas Savings and Loan Department Chapter 63. Fees and Charges 7 TAC sec.63.5 The Texas Savings and Loan Department adopts an amendment to sec.63.5, concerning fee for special examination or audit, without changes to the proposed text as published in the January 25, 1994, issue of the Texas Register (19 TexReg 390). This section clarifies that examination fees will be charged only for special examinations and not for an association's annual regular examination. This section will allow more efficient collection and administration of fees charged to the associations under the Department's jurisdiction. An association subject to the Savings and Loan Act will only pay an examination fee of $325 per day for each examiner if the Commissioner deems a special examination necessary. Special examinations would include only those which the Commissioner conducts or causes to have conducted after the institution has completed one annual examination or such other additional examinations as the Commissioner deems to be necessary. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 342-114, which provide the Finance Commission of Texas with the authority to promulgate general rules and regulations not inconsistent with the constitution and statutes of the state and, from time to time, to amend same. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 25, 1994. TRD-9436748 James L. Pledger Commissioner Texas Savings and Loan Department Effective date: March 18, 1994 Proposal publication date: January 25, 1994 For further information, please call: (512) 475-1350 Chapter 69. Reorganization, Merger, Consolidation, Acquisition, and Conversion 7 TAC sec.sec.69.1, 69.2, 69.7-69.9, 69.11 The Texas Savings and Loan Department adopts amendments to sec.sec.69.1, 69.2, 69.7-69.9, and 69.11 concerning reorganization, merger, consolidation, acquisition, and conversion, without changes to the proposed text as published in the January 25, 1994, issue of the Texas Register (19 TexReg 390). The amendments conform the language with legislative changes to the Texas Savings and Loan Act relating to cross industry mergers, consolidations, acquisitions, and conversions. This section will allow the continued safe and sound operation of the resulting financial institution. Because the statutory amendments enable savings and loan associations to engage in reorganization, merger, consolidation and acquisition transactions with other types of financial institutions, the rule incorporates those transactions with the additional categories of institutions into the Department's procedure for approving such transactions without material changes to the procedures already in place. Such transactions are subject to applications to and approval by the Commissioner in the same manner as those transactions would be handled if the transactions involved only savings associations. No comments were received regarding adoption of the amendments. The amendments are adopted under Texas Civil Statutes, Article 342-114, which provide the Finance Commission of Texas with the authority to promulgate general rules and regulations not inconsistent with the constitution and statutes of the state and, from time to time, to amend same. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 25, 1994. TRD-9436746 James L. Pledger Commissioner Texas Savings and Loan Department Effective date: March 18, 1994 Proposal publication date: January 25, 1994 For further information, please call: (512) 475-1350 Chapter 73. Subsidiary Corporations 7 TAC sec.73.6 The Texas Savings and Loan Department adopts new sec.73.6, concerning operating subsidiaries, without changes to the proposed text as published in the January 25, 1994, issue of the Texas Register (19 TexReg 392). This section clarifies that state savings and loan associations have the authority to invest in operating subsidiaries whose activities are limited to those that could be conducted directly by the parent savings and loan association. This section will allow savings and loan associations to perform selected activities that the parent association could conduct directly through an operating subsidiary, thus limiting the liability of the parent association and, therefore, increasing association and depositor protection. Because operating subsidiaries can only invest in activities that could be conducted directly by the association, such investment would not be included in the calculation of the limit on investment in subsidiaries. Authority to invest in operating subsidiaries is identical to authority available to federally chartered savings associations and such investments by federal associations are not counted as part of an institution's investment in subsidiaries. Institutions generally use operating subsidiaries in order to limit liability of the association in situations involving foreclosed property or other instances where there may be a reason to clearly separate the association from the assets or activities of the operating subsidiary. Any investment or activity limitations that would be applicable to the association's activities or investments would be equally applicable to the operating subsidiary. Operating subsidiaries are fully subject to the regulatory supervision and examination of the Department, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 342-114, which provide the Finance Commission of Texas with the authority to promulgate general rules and regulations not inconsistent with the constitution and statutes of the state and, from time to time, to amend same. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 25, 1994. TRD-9436747 James L. Pledger Commissioner Texas Savings and Loan Department Effective date: March 18, 1994 Proposal publication date: January 25, 1994 For further information, please call: (512) 475-1350 Chapter 79. Miscellaneous Corporate Activities 7 TAC sec.79.12 The Texas Savings and Loan Department adopts new sec.79.12, concerning Bylaws, without changes to the proposed text as published in the January 25, 1994, issue of the Texas Register (19 TexReg 393). This section gives state savings banks the authority to adopt, amend, and repeal bylaws. This will allow state savings banks to be subject to corporate bylaw and director liability provisions that are competitive with state banks and state savings and loan associations. A state savings bank is specifically permitted to include in its bylaws a provision regarding the limitation of liability for directors consistent with Article 1302-7.06 of the Texas Miscellaneous Corporations Act. Such directors liability limitations are available to state or national banks in Texas and state or federal savings associations. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 342-114, which provide the Finance Commission of Texas with the authority to promulgate general rules and regulations not inconsistent with the constitution and statutes of the state and, from time to time, to amend same. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 25, 1994. TRD-9436745 James L. Pledger Commissioner Texas Savings and Loan Department Effective date: March 18, 1994 Proposal publication date: January 25, 1994 For further information, please call: (512) 475-1350 Fees and Charges 7 TAC sec.79.95 The Texas Savings and Loan Department adopts an amendment to sec.79.95, concerning fees and charges, without changes to the proposed text as published in the January 25, 1994, issue of the Texas Register (19 TexReg 393). This section clarifies that examination fees will be charged only for special examinations and not for a savings bank's annual regular examination. This section will allow more efficient collection and administration of fees charged to the savings banks under the Department's jurisdiction. A savings bank subject to the Savings Bank Act will only pay an examination fee of $325 per day for each examiner if the Commissioner deems a special examination necessary. Special examinations would include only those which the Commissioner conducts or causes to have conducted after the institution has completed one annual examination or such other additional examinations as the Commissioner deems to be necessary. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 342-114, which provide the Finance Commission of Texas with the authority to promulgate general rules and regulations not inconsistent with the constitution and statutes of the state and, from time to time, to amend same. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 25, 1994. TRD-9436744 James L. Pledger Commissioner Texas Savings and Loan Department Effective date: March 18, 1994 Proposal publication date: January 25, 1994 For further information, please call: (512) 475-1350 7 TAC sec.79.105 The Texas Savings and Loan Department adopts an amendment to sec.79.105, without changes to the proposed text as published in the January 25, 1994, issue of the Texas Register (19 TexReg 393). This section reduces the fees for conversion to a state savings bank charter for institutions with assets of less than $75 million. This will ensure that the cost of conversion for such institutions is not prohibitive, enabling more institutions to convert to state savings banks, and thus strengthening the state thrift system. An institution that desires to convert to a state savings bank will be charged according to the amended section. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 342-114, which provide the Finance Commission of Texas with the authority to promulgate general rules and regulations not inconsistent with the constitution and statutes of the state and, from time to time, to amend same. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 25, 1994. TRD-9436743 James L. Pledger Commissioner Texas Savings and Loan Department Effective date: March 18, 1994 Proposal publication date: January 25, 1994 For further information, please call: (512) 475-1350 Part VII. State Securities Board Chapter 101. General Administration 7 TAC sec.101.4 The State Securities Board adopts an amendment to sec.101.4, concerning examination of records pursuant to the open records provisions of the Texas Government Code. The rule is adopted without changes to the proposed text as published in the December 7, 1993, issue of the Texas Register (18 TexReg 9039). The amendment corrects the citation to the Open Records Act to reflect its codification in the Texas Government Code, effected by Senate Bill 248, 73rd Legislature, 1993. Persons who anticipate requesting examination of records will be apprised of the accurate citation of the relevant portions of the Texas Government Code. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 24, 1994. TRD-943682 Denise Voigt Crawford Securities Commissioner State Securities Board Effective date: March 17, 1994 Proposal publication date: December 7, 1993 For further information, please call: (512) 305-8300 Chapter 107. Terminology 7 TAC sec.107.2 The State Securities Board adopts an amendment to sec.107.2, concerning definitions of terms used in the Securities Act and the rules thereunder to change the citation to the Administrative Procedure Act to reflect its codification in the Texas Government Code, and to change the definition of "contested case" to reflect the requirements of Texas Government Code, sec.2003. 021. The rule is adopted with changes to the proposed text as published in the December 7, 1993, issue of the Texas Register (18 TexReg 9039). A change was made to the published proposal to remove an unnecessary comma in the definition of "contested case." The rule reflects the codification of the Administrative Procedure Act in the Texas Government Code and the definition of "contested case" in the Texas Government Code. Persons will be apprised of the accurate citation to the Texas Government Code and the terminology used by the Agency will be consistent with that used in the Texas Government Code. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. sec.107.2. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise: APA or Administrative Procedure Act-The Administrative Procedure Act, Texas Government Code, Title 10, Chapter 2001, as amended. Contested case -A proceeding in which the legal rights, duties, or privileges of a party are to be determined by the Securities Commissioner, or the Securities Board, after an opportunity for adjudicative hearing before an Administrative Law Judge of the State Office of Administrative Hearings. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 24, 1994. TRD-9436683 Denise Voigt Crawford Securities Commissioner State Securities Board Effective date: March 17, 1994 Proposal publication date: December 7, 1993 For further information, please call: (512) 305-8300 Chapter 127. Miscellaneous Rules 7 TAC sec.127.3 The State Securities Board adopts an amendment to sec.127.3, concerning the meaning of the term "state seal" as used in the Securities Act, sec.30. The rule is adopted without changes to the proposed text as published in the December 7, 1993, issue of the Texas Register (18 TexReg 9039). The rule will now reflect the amendment to the Securities Act, sec.30, effected by House Bill 1463, 73rd Legislature. There will be consistency between the language in the Securities Act, sec.30, and the rule which interprets it. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 24, 1994. TRD-9436684 Denise Voigt Crawford Securities Commissioner State Securities Board Effective date: March 17, 1994 Proposal publication date: December 7, 1993 For further information, please call: (512) 305-8300 Chapter 133. Forms 7 TAC sec.133.1 The State Securities Board adopts an amendment to sec.133.1, concerning the form of requests for publicly available information. The rule is adopted without changes to the proposed text as published in the December 7, 1993, issue of the Texas Register (18 TexReg 9040). The amendment corrects the citation to the Open Records Act to reflect its codification in the Texas Government Code, effected by Senate Bill 248, 73rd Legislature, 1993. Persons who anticipate requesting examination of records will be apprised of the accurate citation of the relevant portions of the Texas Government Code. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 581, sec.28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 24, 1994. TRD-9436685 Denise Voigt Crawford Securities Commissioner State Securities Board Effective date: March 17, 1994 Proposal publication date: December 7, 1993 For further information, please call: (512) 350-8300 TITLE 22. EXAMINING BOARDS Part XII. Board of Vocational Nurse Examiners (Editor's Note: In August, 1993, the Board of Vocational Nurse Examiners adopted two new rules in Chapters 241 and 243. Unfortunately these chapters already existed and contain rules from another agency. Therefore the Texas Register is administratively transferring these rules as specified below. ) Chapter 241. Vocation Nurse Peer Review sec.241.11. Vocational Nurse Peer Review. transferred to Chapter 240. Peer Review and Reporting sec.240.11. Vocational Nurse Peer Review. Chapter 243. Vocational Nurse Reporting sec.243.11. Vocational Nurse Reporting. transferred to Chapter 240. Peer Review and Reporting sec.240.12. Vocational Nurse Reporting. Part XXIV. Texas Board of Veterinary Medical Examiners Chapter 571. Licensing License Renewals 22 TAC sec.571.52 The Texas Board of Veterinary Medical Examiners adopts an amendment to sec.571.52, without changes to the proposed text as published in the October 26, 1993, issue of the Texas Register (18 TexReg 7455). The adoption of this section will reduce to one year the period in which a licensee may be delinquent in renewing their license, before being required to submit to reexamination for licensure. This section will require that the Executive Director sign license renewal certificates for licensees with a license that is no more than one year delinquent. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 8890, sec.7(a), which provide the Texas Board of Veterinary Medical Examiners with the authority to make, alter, or amend such rules and regulations as may be necessary or desirable to carry into effect the provisions of this Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 18, 1994. TRD-9436778 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Effective date: March 21, 1994 Proposal publication date: October 26, 1993 For further information, please call: (512) 447-1183 22 TAC sec.571.54 The Texas Board of Veterinary Medical Examiners adopts an amendment to sec.571.54, without changes to the proposed text as published in the October 26, 1993, issue of the Texas Register (18 TexReg 7455). The amendment is adopted in order to alleviate confusion concerning the retired licensee status, and qualify what is required should a licensee wish to return to practice. This section will require that licensees wishing to return to practice, after one year of declaring a retired status, to petition the Board in writing, complete an application for examination, and submit to those examinations ordered by the Board. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 8890, sec.7(a), which provide the Texas Board of Veterinary Medical Examiners with the authority to make, alter, or amend such rules and regulations as may be necessary or desirable to carry into effect the provisions of this Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 18, 1994. TRD-9436777 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Effective date: March 21, 1994 Proposal publication date: October 26, 1993 For further information, please call: (512) 447-1183 22 TAC sec.571.55 The Texas Board of Veterinary Medical Examiners adopts an amendment to sec.571.55, without changes to the proposed text as published in the October 26, 1993, issue of the Texas Register (18 TexReg 7456). The current rule requires the Secretary's signature on letters informing practitioners of their delinquent renewal status. Obtaining this signature requires travel by staff or the Secretary. Removal of this requirement is a cost saving measure. Amendments to the Veterinary Licensing Act reduce the period a license can be delinquent to one year. The second amendment to this rule reduces the delinquent period to one year as mandated by the revised Act. On March 10th of each year, the Executive Director will inform applicable licensees of their delinquent status. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 8890, sec.7(a), which provide the Texas Board of Veterinary Medical Examiners with the authority to make, alter, or amend such rules and regulations as may be necessary or desirable to carry into effect the provisions of this Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 18, 1994. TRD-9436779 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Effective date: March 21, 1994 Proposal publication date: October 26, 1993 For further information, please call: (512) 447-1183 TITLE 30. ENVIRONMENTAL QUALITY Part I. Texas Natural Resource Conservation Commission Chapter 261. Introductory Provisions Subchapter A. General Provisions 30 TAC sec.261.13 The Texas Natural Resource Conservation Commission (Commission) adopts new sec.261.13, concerning inscriptions on state owned vehicles, without changes to the proposed text as published in the December 24, 1993, issue of the Texas Register (18 TexReg 9921). This section will provide the Special Investigations Unit of the TNRCC the ability to conduct criminal investigations without altering the possible target. No comments were received regarding adoption of the new section. The new section is adopted under the Texas Water Code, sec.5.102 and sec.5. 105, which provide the Commission with the authority to adopt any rules necessary to carry out its powers and duties. The new section implements Texas Civil Statutes, Article 6701m-1, as mentioned in the section. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 28, 1994. TRD-9436785 Mary Ruth Holder Legal Division Texas Natural Resource Conservation Commission Effective date: March 21, 1994 Proposal publication date: December 24, 1993 For further information, please call: (512) 463-8069 TITLE 34. PUBLIC FINANCE Part I. Comptroller of Public Accounts Chapter 3. Tax Administration Subchapter V. Franchise Tax 34 TAC sec.3.554 The Comptroller of Public Accounts adopts the repeal of sec.3.554, concerning earned surplus: nexus, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5652). The section is being repealed in order that a substantially revised section dealing with the same subject matter may be adopted. No comments were received regarding adoption of the repeal. The repeal is adopted under the Tax Code, sec.111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 24, 1994. TRD-9436677 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: March 17, 1994 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-4028 The Comptroller of Public Accounts adopts new sec.3.554, concerning earned surplus: nexus, without changes to the proposed text as published in the August 24, 1993, issue of the Texas Register (18 TexReg 5652). Because of substantial changes, the current sec.3.554 is being proposed for repeal. The new section provides several examples of activities sufficient to create nexus and of activities which, by themselves, will not create nexus. No comments were received regarding adoption of the new section. The new section is adopted under the Tax Code, sec.111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 24, 1994. TRD-9436678 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: March 17, 1994 Proposal publication date: August 24, 1993 For further information, please call: (512) 463-4028 Chapter 9. Property Tax Administration Subchapter C. Appraisal District Administration 34 TAC sec.9.406 The Comptroller of Public Accounts adopts new sec.9.406, concerning an exemption application for charitable organizations improving property for low- income housing, without changes to the proposed text as published in the December 14, 1993, issue of the Texas Register (18 TexReg 9834). The new section sets out the contents of the exemption application, which incorporates the requirements of the Tax Code, sec.11.181, effective January 1, 1994. The new section is necessary because House Bill 1096, 73rd Legislature, 1993, created the new exemption for charitable organizations improving property for low-income housing. The new section specifies the language and order of the information in the application form. The new form is similar to the one for charitable organizations with additions reflecting the requirements of the Tax Code, sec.11.181. The new section adopts the application form by reference. One comment was received from the Habitat for Humanity International affiliate in Waco requesting that the required listing of salaries and other compensation for services paid in the last year be changed. The comptroller disagreed. Salaries and compensation data are an essential part of the information needed for a charitable organization to be qualified as a charitable organization. There were no comments concerning adoption of the new section. The new section is adopted under the Tax Code, sec.11.43(f), which requires the comptroller to prescribe the contents and form for each kind of property tax exemption. The new section implements the Tax Code, sec.11.181 and sec.11. 43(a). This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 23, 1994. TRD-9436598 Martin E. Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: March 16, 1994 Proposal publication date: December 14, 1993 For further information, please call: (512) 463-4028 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 19. Long-Term Care Nursing Facility Requirements for Licensure and Medicaid Certification Subchapter S. Reimbursement Methodology for Nursing Facilities 40 TAC sec.19.1807 The Texas Department of Human Services (DHS) adopts an amendment to sec.19. 1807, concerning rate setting methodology, in its Long-Term Care Nursing Facility Requirements rule chapter, without changes to the proposed text as published in the January 18, 1994, issue of the Texas Register (19 TexReg 340). The justification for the amendment is to comply with a Health Care Financing Administration audit recommendation to delete the policy that states that DHS lowers the Medicaid rate to the provider's customary charge when that charge is consistently less than the Medicaid rate for the same services. Since DHS does not collect the needs data on private-pay patients, DHS is unable to make the comparison between the Medicaid rate and the provider's customary charge required by the policy. The amendment will function by deleting an obsolete and unenforceable rule. During the public comment period, DHS received comments from the Texas Association of Homes for the Aging. The commenter expressed support for the proposal. The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority to administer public and medical assistance programs and under Texas Civil Statutes, Article 4413 (502), sec.16, which provide the Health and Human Services Commission with the authority to administer federal medical assistance funds. The amendment implements the Human Resources Code, sec.32.028 and sec.32.029. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 28, 1994. TRD-9436789 Nancy Murphy Section Manager, Policy and Document Support Texas Department of Human Services Effective date: April 1, 1994 Proposal publication date: January 18, 1994 For further information, please call: (512) 450-3765 Chapter 27. Intermediate Care Facilities for the Mentally Retarded (ICFs-MR) Subchapter D. Reimbursement Methodology 40 TAC sec.27. 413 The Texas Department of Human Services (DHS) adopts an amendment to sec.27. 413, concerning rate setting methodology, in its Intermediate Care Facilities for the Mentally Retarded (ICFs-MR) rule chapter, without changes to the proposed text as published in the January 18, 1994, issue of the Texas Register (19 TexReg 340). The justification for the amendment is to comply with a Health Care Financing Administration audit recommendation to delete the policy that states that DHS lowers the Medicaid rate to the provider's customary charge when that charge is consistently less than the Medicaid rate for the same services. Since DHS does not collect the needs data on private-pay patients, DHS is unable to make the comparison between the Medicaid rate and the provider's customary charge required by the policy. The amendment will function by deleting an obsolete and unenforceable rule. During the public comment period, DHS received comments from the Texas Association of Homes for the Aging. The commenter expressed support for the proposal. The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority to administer public and medical assistance programs and under Texas Civil Statutes, Article 4413 (502), sec.16, which provide the Health and Human Services Commission with the authority to administer federal medical assistance funds. The amendment implements the Human Resources Code, sec.32.028 and sec.32.029. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 28, 1994. TRD-9436790 Nancy Murphy Section Manager, Policy and Document Support Texas Department of Human Services Effective date: April 1, 1994 Proposal publication date: January 18, 1994 For further information, please call: (512) 450-3765 Part XIX. Texas Department of Protective and Regulatory Services Chapter 700. Child Protective Services Subchapter C. Eligibility for Child Protective Services 40 TAC sec.700.316 The Texas Department of Protective and Regulatory Services (TDPRS) adopts an amendment to sec.700.316, concerning eligibility for Child Protective Services, without changes to the proposed text as published in the January 18, 1994, issue of the Texas Register (19 TexReg 343). The justification for the amendment is to help youths in foster care finish high school or learn marketable vocational or technical skills before they leave foster care and begin living independently as adults. The amendment does so by extending the eligibility period for foster-care assistance when a youth is attending high school or taking vocational or technical training classes after turning 18. The amendment will function by helping older teenagers in foster care make better transitions into adulthood by improving their preparation to earn a living. No comments were received regarding adoption of the amendment. The amendment is adopted under the Human Resources Code, Title 2, Chapter 22, which authorizes the department to administer public assistance programs. The amendment is also adopted under the Texas Family Code, Title 2, Chapter 34, which authorizes the department to provide services to alleviate the effects of child abuse and neglect. In addition, the amendment is adopted under Public Law Number 96-272, Title I, which authorizes the department to administer foster- care and adoption assistance programs provided for under the Social Security Act, Title IV-E. Finally, the amendment is adopted under Texas Civil Statutes, Article 4413(503) historical note (Vernon Supplement 1993) which transferred all functions, programs, and activities related to the child protective services program from the Texas Department of Human Services to the Texas Department of Protective and Regulatory Services. The amendment implements the Social Security Act, Title IV-E. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on February 25, 1994. TRD-9436734 Nancy Murphy Section Manager, Policy and Document Support Texas Department of Protective and Regulatory Effective date: April 1, 1994 Proposal publication date: January 18, 1994 For further information, please call: (512) 450-3765