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 1. ADMINISTRATION Part V. General Services Commission Chapter 113. Central Purchasing Division Purchasing 1 TAC sec.113.15, sec.113.18 The General Services Commission adopts an amendment to sec.113.15, concerning invoicing and payment and new sec.113.18, concerning auditing of purchase documents and payment vouchers, without changes to the proposed text as published in the May 6, 1994, issue of the Texas Register (19 TexReg 3397). The amendment to sec.113.15 is adopted to provide that prompt pay provisions do not apply to bona fide disputes between a governmental entity and a vendor or contractor. The amendment to new sec.113.18 is necessary to conform auditing functions to the Uniform Statewide Accounting System. The adopted amendment to sec.113.15 and new sec.113.18 conform invoicing, payment and auditing functions to the Uniform Statewide Accounting System (USAS) procedures, and clarify the application of the Prompt Pay Act (Texas Government Code, Chapter 2251). No comments were received regarding adoption of the amendment and new section. The amendment and new section are adopted under Texas Civil Statutes, Article 601b, and Texas Government Code, Chapter 2251, which provide the General Services Commission with the authority to promulgate rules necessary to accomplish the purposes of the Article and Chapter. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on June 10, 1994. TRD-9442436 Judith M. Porras General Counsel General Services Commission Effective date: July 6, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 463-3583 TITLE 7. BANKING AND SECURITIES Part IV. Texas Savings and Loan Department Chapter 63. Fees and Charges 7 TAC sec.63.15 The Texas Savings and Loan Department adopts new sec.63.15, concerning fees for open records requests, without changes to the proposed text as published in the May 6, 1994, issue of the Texas Register (19 TexReg 3401). This rule is based on House Bill 1009, passed by the 73rd Legislature, Regular Session. Section 9A(b) of this law requires each state agency to specify by rule the charges the agency will make for copies of public records. This is being done so that the public can be informed about the charges for copies of records of the Department that they have access to under the Texas Open Records Act prior to making a request for such records. It is also an attempt to have some degree of uniformity among the agencies in the level of those charges. No comments were received regarding adoption of the new section. The new sections 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 June 20, 1994. TRD-9442728 James L. Pledger Commisioner Texas Savings and Loan Department Effective date: July 11, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 475-1350 Chapter 77. Loans, Investments, Savings, and Deposits 7 TAC sec.77.31 The Texas Savings and Loan Department adopts an amendment sec.77.31, concerning loan documentation, without changes to the proposed text as published in the May 6, 1994 issue of the Texas Register (19 TexReg 3401). The rule as amended more closely tracks the lending and loan documentation requirements applicable to federal savings banks or associations, and state or national banks. Recent federal interagency regulations were adopted to establish the requirement for appraisals at $250,000. The amendment deletes the specific definition of a "current" financial statement, deletes the provision requiring the board of directors of a savings bank to separately approve a specific list of acceptable appraisers, and increases the threshold for which appraisals are required for real estate loans to $250,000. 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 June 20, 1994. TRD-9442730 James L. Pledger Commisioner Texas Savings and Loan Department Effective date: July 11, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 475-1350 Chapter 79. Miscellaneous Fees and Charges 7 TAC sec.79.108 The Texas Savings and Loan Department adopts new sec.79.108, concerning fees for open records regquests, without changes to the proposed text as published in the May 6, 1994, issue of the Texas Register (19 TexReg 3402). This rule is based on House Bill 1009, passed by the 73rd Legislature, Regular Session. Section 9A(b) of this law requires each state agency to specify by rule the charges the agency will make for copies of public records. This is being done so that the public can be informed about the charges for copies of records of the Department that they have access to under the Texas Open Records Act prior to making a request for such records. No comments were received regarding adoption of the new section. The new sections 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 June 20, 1994. TRD-9442727 James L. Pledger Commisioner Texas Savings and Loan Department Effective date: July 11, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 475-1350 Statements of Policy 7 TAC sec.79.121 The Texas Savings and Loan Department adopts new sec.79.121, concerning statements of policy, without changes to the proposed text as published in the May 6, 1994 issue of the Texas Register (19 TexReg 3403). While the ability of the commissioner and the Finance Commission to limit parity is important to maintain from a supervisory perspective, such limitations on parity should be intentional and very specific in order to avoid confusion. General regulations which might be interpreted as limiting the availability of parity should not have the effect of overriding this parity provision. Parity should only be overridden when it is the specific intent of the commissioner and the Finance Commission to do so. This rule is designed to clarify that intent and procedure related to parity so that the rules applicable to savings banks will be clear and not subject to varying interpretations. This rule will describe the procedure for overriding the effect of the parity provision set forth in the Texas Savings Bank Act, sec.7.11. This provision differs from the parity provision in the Texas Savings and Loan Act in that it is subject to limitations and restrictions that may be prescribed by rule of the commissioner and the Finance Commission. No comments were received regarding the adoption of 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 June 20, 1994. TRD-9442729 James L. Pledger Commisioner Texas Savings and Loan Department Effective date: July 11, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 475-1350 Part VI. Credit Union Department Chapter 91. Chartering, Operations, Mergers, Liquidations Definitions 7 TAC sec.91.1 The Texas Credit Union Commission adopts the repeal of sec.91.1, concerning definitions, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1278). The rule is repealed because it has been recast and renumbered. There were no comments received regarding repeal of the rule. The repeal is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442537 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Changes in Corporate Status 7 TAC sec.91.1004 The Texas Credit Union Commission adopts an amendment to sec.91.1004, concerning conversion of charter, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1301). The amendment deletes notification requirement to Texas Share Guaranty Credit Union since it is currently in liquidation. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442562 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 General Rules 7 TAC sec.91.102 The Texas Credit Union Commission adopts new sec.91.102, concerning the definition and clarification of terms used in Credit Union Department rules, with changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1327). The definitions for Select Employees Groups and Special Purpose Groups were deleted, the definition for Shares and Deposits was amended to be consistent with the Act, sec.6.01, and the phrase "definable community of interest or" was added to the definition of Recognizable Community. The section will provide credit unions with definitions of terms used in the rules and will conform the rule number to the Act, to the extent possible. Comments were received from Dallas Teachers Credit Union, the Texas Credit Union League, and the staff of the Credit Union Department. The following is a summary of the comments by the Dallas Teachers Credit Union: The commenter questioned whether the use of Application in the rules as defined limited the commissioner's authority to act on other matters. The commission disagrees and no change to the rule was made because legal counsel advised that the commissioner's authority is not limited by the rule. A comment indicating that the term "association" is not defined in this section even though used in the rules and does not convey the status of associations with more than 500 members implied the need for a definition. The commission disagrees that the term needed to be defined and no change was made in the rule because the term is adequately defined by the text of sec.91.301. Another comment asked if the quasi-regulatory oversight of a Credit Union Service Organization (CUSO) by the Credit Union Department would be reduced if an entity other than a credit union became part owner of a CUSO. The commission disagrees and the comment resulted in no change to the rule because the existing language in sec.91.801(c)(4) addresses regulatory oversight of CUSOs. The commission agrees with a comment that the definitions for Select Employee Groups and Special Purpose Groups were of little value because of how the rules were written. These terms were deleted from the rule as adopted. The following is a summary of comments by the Texas Credit Union League: The commenter objected to the inclusion of terms in this rule such as Select Employee Groups and Special Purpose Groups be deleted because they are not used in the text of the rules. The commission agrees with the comment and the definitions were deleted. The commenter supported the rule, but suggested that the definition of Share and Deposits be changed to have the same meaning as the Act. The commission agrees and the definition was changed to be consistent with the text of the Act. The following is a summary of comments by the Credit Union Department staff: The staff commented that the definition of Recognizable Community should be changed to more closely tie back to the Act. The commission agrees and the phrase "definable community of interest or" was inserted to provide clarity. The new section is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.102. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Act-The Texas Credit Union Act (Texas Civil Statutes, Article 2461-1.01 et seq). Applicants-Incorporators and credit unions. Application-A written request filed by an applicant with the Department seeking to incorporate, amend articles of incorporation or bylaws, deviate from standard bylaws, obtain a certificate of authority to do business in the State of Texas or to obtain other relief for which the commission is authorized to issue a final decision or order subject to judicial review by the Act. Commission-The Credit Union Commission. Commissioner-The Credit Union Commissioner. Common bond-A definable community of interest, in accordance with the articles of incorporation or bylaws of the credit union, including a community of interest based on occupation, association, or residence, and may include combinations thereof. CUSO-An organization, the membership or ownership of which is confined or restricted to credit unions and their members or organizations of credit unions, which entity is designed primarily to serve or otherwise assist credit union operations. Department-The Credit Union Department. Department Newsletter -The monthly publication that serves as official notice of all applications, and by which procedures to protest applications are described. Indirect financing -A program in which a credit union makes the credit decision in a transaction where the credit is extended by the vendor and assigned to the credit union or a loan transaction that generally involves substantial participation in and origination of the transaction by a vendor. Loan to value ratio-The aggregate amount of all sums owed on an item of collateral securing a loan divided by the value of the collateral. Manufactured home -A HUD-Code manufactured home as defined by the Texas Manufactured Housing Standards Act. Overlap-The situation which exists when a group of persons eligible for membership in two or more state or federal credit unions doing business in this state. Notwithstanding this provision, no overlap exists if eligibility for credit union membership results solely from a family relationship. Person-An individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character. Protestant-A credit union that opposes or objects to the relief requested by an applicant. Recognizable community -A geographical area which possesses such characteristics that the residents of the area share a definable community of interest or sense of identification with each other which may be based upon mutual interests, goals, community pride or other similar elements. Improved residential property-Real property consisting of a residential dwelling having one to four dwelling units, at least one of which is occupied by the owner of the property. This term shall also include one to four unit dwelling occupied in whole or in part by the owner on a seasonal basis. Secured credit -A loan made or extension of credit given upon an assignment of an interest in collateral pursuant to applicable state laws so as to make the enforcement or promise more certain than the mere personal obligation of the debtor or promisor. Any assignment may include an interest in personal property or real property or a combination thereof. Shares and deposits -All share and deposit accounts of the credit union, the terms share account and deposit account shall have the same meaning as provided in the Act. Title-The word "title" refers to Title 7 of the Texas Administrative Code (TAC), Banking and Securities. This volume of the TAC contains all of the Department's rules. Unsecured credit -A loan or extension of credit upon the general credit financial standing of the borrower. The term shall include loans or other extensions of credit supported by the signature of a co-maker, guarantor, or endorser. 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 June 17, 1994. TRD-9442538 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.1110 The Texas Credit Union Commission adopts new sec.91.1110, concerning share deposit guaranty requirements, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1302). The section replaces Rule 95.3 and requires all state chartered credit union deposits to be insured by the National Credit Union Share Insurance Fund. There were no comments received regarding adoption of the rule. The new section is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442563 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Organization Procedures 7 TAC sec.sec.91.200, 91.204, 91.205, 91.207 The Texas Credit Union Department adopts the repeal of sec.91.200, 91.204, 91.205, and 91.207, concerning Interpretations, Issuance and Denial of Permits, Standard Bylaws, and Monthly Publication, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1279). Rule sec.91.200 is repealed because it has been recast and renumbered; Rules sec.91.204 and 91.205 are repealed because they are obsolete and not needed. Rule sec.91.207 is repealed because the definition of Department Newsletter is included in Rule sec.91.102. There were no comments received regarding repeal of the rules. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442539 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.203 The Texas Credit Union Commission adopts an amendment to sec.91.203, concerning incorporation procedures, with changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1279). The change in subsection (a) clarifies the timeframe for the commissioner to determine when an application is complete; the change in subsection (b) clarifies the date of publication in the Department Newsletter; the change in subsection (e) clarifies the language regarding the consideration of overlap for any federal or state credit union. The amendment clarifies the timeframe in which the commissioner must act on a completed application, the publishing date of a completed application, and the process for protesting an application. Comments were received from Dallas Teachers Credit Union and the Texas Credit Union League. The following is a summary of comments by the Texas Credit Union League: The commenter suggested that the rule should include a time period for the commissioner to determine when an application is complete. The commission agrees, and the rule was changed to require a written notice from the commissioner to an applicant within 30 days of receipt of an application; the written notice must include any deficiencies with the application. The commenter noted that sec.91.301 requires the commissioner to consider overlap in all cases, but proposed sec.91.206 was requiring overlap to be considered only if a protest was filed. The commission agrees that the rule was contradictory to sec.91.301, and a change was made to require the commissioner to consider overlapping of fields of memberships in any application to expand the field of membership. The following is a summary of comments by the Dallas Teachers Credit Union: The commenter suggested that an application to incorporate be published in the first Newsletter subsequent to submission of an application deemed to be complete. The commission agrees and changed the rule to require publication as suggested. The commenter suggested that a time period for filing a protest should be specified in the rule. The commission disagrees, and no change was made to the rule because subsections (b), (d), and (g) of sec.91.206 adequately address protest of amendments of the bylaws. The commenter questioned whether a definition of "protest" was needed. The commission disagrees that a definition of "protest" was necessary, and no change to the rule was made because the context in which the word protest used in Chapter 93 of the rules provides significant clarification. The commenter noted that sec.91.301 requires the commissioner to consider overlap in all cases, but proposed sec.91. 206 was requiring overlap to be considered only if a protest was filed. The commission agrees that the rule was contradictory to sec.91.301, and a change was made because the commissioner must consider overlap of fields of memberships in any application to expand the field of membership. The commenter questioned whether the commissioner should be required to publish a notice when the application will not be approved, notwithstanding the lack of a protest. The commission disagrees that an application should not be published just because it would not be approved. A change to the rule was not necessary because the minimal effort required to publish such applications is offset by the credit unions' right to be informed. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.203. Incorporation Procedures. (a) The commissioner shall determine whether or not an application is complete within thirty days of its receipt and provide written notice of the determination. The notice shall provide with reasonable specificity any deficiencies in the application. (b) Notice of complete applications to incorporate shall be published in the Department's first newsletter subsequent to a complete submission. The published notice shall describe the proposed field of membership for each application. (c) If no protest is filed, the commissioner shall approve the application upon being satisfied that the credit union, its incorporators and board of directors meet the requirements of the Act, sec.2.03(d). (d) If no protest is filed and the commissioner is not satisfied that the application for incorporation should be approved, the commissioner shall serve by first class mail a preliminary written order denying the application. (e) The commissioner shall additionally consider the extent and effect of overlapping fields of membership on the applicant and existing state or federal credit unions. The commissioner may require the applicant to limit or eliminate the overlap to achieve the purposes of the Act and promote the welfare and stability of the applicant and existing state or federal credit unions. The commissioner's preliminary decision shall be in writing and served by first class mail. 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 June 17, 1994. TRD-9442540 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.206 The Texas Credit Union Commission adopts an amendment to sec.91.206, concerning the form of the bylaws, the steps necessary to amend bylaws, and the approval process for bylaws, with changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1280). The change in subsection (a) clarifies that standard bylaws must be adopted by all credit unions, not just those incorporating; the change in subsection (h) provides for notification to the applicant and each protestant; the change in subsection (f) requires the commissioner to determine whether an application is complete and to provide a written notice to the applicant within 30 days of receipt, providing reasonable specificity for any deficiencies in the application. The amendment clarifies the form of bylaws, the steps necessary to amend bylaws, and the approval process for the bylaws. Comments were received from Texins Credit Union, Independent Bankers Association of Texas, Dallas Teachers Credit Union and the Texas Credit Union League. The following is a summary of comments by the Texins Credit Union: The commenter stated that the requirements which must be met by an applicant to obtain approval for an expansion of the field of membership was not adequately detailed. The commission disagrees because a significant degree of judgement and discretion must be exercised and general criteria have been established by previous commission pronouncements. No change was made to the rule. The commenter stated that the rule did not resolve the question of whether a hearing can or must be scheduled prior to a preliminary ruling by the commissioner. The commission agrees, but made no change to this rule because sec.93.12 was considered the appropriate area to address this concern. The following is a summary of the comments by the Texas Credit Union League: A comment that the determination of when an application is complete should require written notice of any deficiencies after a prescribed time period. The commission agrees and amended the rule to require the commissioner to provide written notice to an applicant within 30 days of the receipt of an application. The notice must indicate any deficiencies found in the application. The following is a summary of the comments by the Dallas Teachers Credit Union: The comment indicated that the rule did not clearly state that adoption of the standard bylaws was required of all credit unions. The commission agrees and amended the rule to clarify that incorporating credit unions and existing credit unions must adopt the Standard Bylaws for State Chartered Credit Unions. The commenter stated that the approval process appeared to require the submission of two applications when non-standard bylaw amendments are sought. The commission disagrees and indicated that subsections (c) and (e) provide sufficient guidance regarding deviations from standard bylaws and about the approval process. A comment questioning who would receive notification of the commissioner's preliminary determination resulted in a change in the rule that a written notice be directed to the applicant and to each protestant because the commission agrees with the commenter. A further comment stated that the commissioner should provide written notification if the application is determined to be incomplete. The commission agrees and amended the text of the rule to require such notice be provided within 30 days of receiving the application and that the deficiencies, if any, should be provided with reasonable specificity. The commenter stated that the publication of fields of membership of merging credit unions should be required. The commission disagrees that such publication was necessary when a continuing credit union in a merger or consolidation is not expanding its field of membership. The following is a summary of the comments by the Independent Bankers Association of Texas: The comment opposed adoption of the rule and the method of publication for charter or branch office applications. The Association opposed the rule and indicated that publication in a newspaper of general circulation or the Texas Register of charter or branch applications should be required. The commission disagrees. The comment resulted in no change to the rule because the rules provide for effective notice of new charters or foreign credit union branch applications through the Department's Newsletter. Interested entities may subscribe to the monthly newsletter. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.206. Form of Bylaws: Amendments to Articles of Incorporation and Bylaws. (a) The Standard Bylaws for State Chartered Credit Unions, adopted by the commission in 1986 or as subsequently amended, constitute the standard form of bylaws which shall be used by credit unions and incorporators. (b) The commissioner is expressly authorized to approve deviations from and amendments to the standard bylaws. The commissioner may approve a deviation or amendment unless the deviation or amendment violates the Act or rules of the commission. (c) A credit union may obtain a deviation from the standard bylaws by submitting a written application to the commissioner. A request for a deviation shall be considered in the same manner as an application to amend bylaws under this section. (d) A copy of the "Standard Bylaws for State Chartered Credit Unions" may be obtained from the Credit Union Department. (e) Credit unions desiring to amend articles of incorporation or bylaws must submit an application to the commissioner on forms prescribed by the commissioner. The application shall include the text of the amendment, the date that the board of directors adopted the amendment, a brief statement explaining the purpose of the amendment, and information regarding the financial impact on the credit union if the amendment is approved. (f) The commissioner shall determine whether or not an application is complete within thirty days of its receipt and provide written notice of the determination. The notice shall provide with reasonable specificity any deficiencies in the application. (g) The commissioner shall publish notice of the application in the Department Newsletter when the application is complete. The commissioner shall allow at least 30 days after the date of the Department Newsletter in which the notice is published for any affected credit union or credit unions to respond to the application prior to taking preliminary action approving or denying the application. This subsection shall not apply to applications for standard optional field of membership provisions (1), (2), and (3) as contained in the Standard Bylaws for State Chartered Credit Unions, standard optional provision (4) with any radius up to 10 miles, or any application submitted to accomplish a supervisory merger or consolidation pursuant to the Act, unless the application encompasses a field of membership not presently served by the credit unions that are being merged or consolidated. (h) The commissioner's preliminary determination shall be in writing and served by first class mail directed to the applicant and to each protestant. (i) The commissioner may approve and make available to credit unions standard bylaw amendments, if: (1) the commissioner determines that the amendment is consistent with the purposes of the Act and does not violate the Act or the rules adopted under the Act; and (2) the subject matter of the amendment is of a type which can be applied to credit unions uniformly. (j) The commissioner shall consider approving a standard bylaw amendment pursuant to subsection (i) of this section if a request for a uniform amendment is made by 25 or more state chartered credit unions or an association with at least 25 state chartered credit unions as members. 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 June 17, 1994. TRD-9442541 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Organization Procedures 7 TAC sec.91.209 The Texas Credit Union Commission adopts an amendment to sec.91.209, concerning penalties for late filing of reports, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1282). The amendment establishes a late fee of $100 per day for late filing of reports. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442542 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.211 The Texas Credit Union Commission adopts an amendment to sec.91.211, concerning the applications for authority to do business in Texas (foreign state credit union branch office), with one change to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1282). The change requires a foreign state credit union to file a written application prior to commencing business in Texas. The amendment clearly states the requirements for foreign credit unions to establish a branch office in Texas. In practice, foreign branches have not been operating prior to an application, but the rule clarifies the requirement. Comments were received from Dallas Teachers Credit Union and the Independent Bankers Association of Texas. The following a summary of the comments by Dallas Teachers Credit Union: Dallas Teachers Credit Union supported the proposed rule but suggested that the rule be more specific about when a foreign branch operation certificate must be obtained. The commission agreed and the proposed rule was amended to require that an application be approved prior to commencing business in Texas. The following is a summary of the comments by the Independent Bankers Association: The commenter opposed the rule, particularly the substitution of the term "credit union" for the word "person" because the rule prevents entities other than credit unions from filing protests. The commission disagrees because the primary purpose for sec.91.211 is to provide an orderly process for resolving conflicts between credit unions. The Act limits to scope of the Department's inquiry into the effects on state or federal credit unions. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.211. Application for a Certificate of Authority to do Business in the State of Texas. (a) A credit union chartered by a foreign state shall prior to commencing business be required to file a written application for a certificate of authority to do business in the State of Texas on a form prescribed by the commissioner. (b) The commissioner shall publish official notice of the filing of the application in the Department Newsletter. (c) The commissioner shall approve the application upon finding that the applicant: (1) is financially sound; (2) will conduct its operations in the State of Texas in accordance with the intent and purpose of the Act; (3) has paid a permit fee of $500 for each branch office proposed to be established in the State of Texas; (4) has in force fidelity bond coverage as required by the state in which the credit union was incorporated; (5) has furnished to the commissioner a true and correct copy of the act under which it was incorporated, and all amendments thereto and of the current rules adopted by the principal regulatory agency of the state in which it was incorporated, and of the credit union's bylaws and all amendments thereto; (6) has agreed to comply with the maximum loan interest rates authorized for credit unions doing business in the State of Texas; (7) has submitted a copy of the latest examination report of the principal regulatory agency of the state in which it was incorporated and has agreed to submit a copy of each succeeding examination report of such agency; (8) has agreed to pay the appropriate operating and filing fees; (9) has proven that the shares and deposits of its members in the State of Texas are insured by the National Credit Union Share Insurance Fund or its successor; (10) has appointed a registered agent for service of process and has provided the commissioner with the name and address of such registered agent who shall be a resident of the State of Texas; and (11) has submitted to the commissioner a letter from the chief supervisor of the principal regulatory agency of the state in which the applicant was incorporated, confirming that such supervisor has no objection to the establishment of such branch office in the State of Texas by the applicant. (d) Within 30 days after receipt of such an application in substantially complete form, the commissioner shall publish notice of the filing of such application in the Department Newsletter. (e) Any credit union aggrieved by the order of the commissioner approving or denying an application for a branch office in this state may appeal that order to the commission and may request that a hearing be scheduled on the matter. Either the commissioner or the commission may order that a hearing be scheduled on the matter. (f) Each credit union chartered by a foreign state and which is operating a branch office within the State of Texas shall furnish to the commissioner a copy of its annual audited financial statements, if any, or other statements of financial condition as the commissioner may require. (g) The commissioner is authorized to examine the books and records of any branch office operated in the State of Texas by any credit union chartered by a foreign state, and shall collect the appropriate filing and operating fees from the credit union. In lieu of performing a periodic examination, the commissioner may accept the most recent examination report on the credit union prepared by examiners of the principal regulatory agency of the state in which it was incorporated. 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 June 17, 1994. TRD-9442543 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Members 7 TAC sec.91.301 The Texas Credit Union Commission adopts new sec.91.301, concerning field of membership, with changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1283). Paragraph (1)(A) was changed by deleting the phrase "but does not include employee groups of 300 or less;" paragraph (2)(A) was change by deleting "Groups comprised of 500 or less members are not considered as an associational group for the purpose of this rule;" paragraph (5)(C) was changed to replace "members of" with "persons eligible for primary membership in." The section provides guidelines and standards to be considered by the commissioner in evaluating fields of membership. Comments were received from Dallas Teachers Credit Union, Texas Credit Union League, Texins Credit Union and Credit Union Department staff. The following is a summary of the comments by the Dallas Teachers Credit Union: The first comment objected to the failure to use all six fields of membership definition types suggested by the Task Force Advisory Committee in sec.91.301. As a result of counsel's advice that the terms cannot be used as intended, the commission disagrees and no change was made to the rule. The commenter stated that the explanation of the burden to prove economic viability of an expansion request of the field of membership was inadequate. The commission disagrees. Section 93.14 adequately addresses the question of burden of proof. The commenter objected to the continued use of the term "recognizable community". The commission disagrees and retained the text of the rule; the definition is only relevant to the consideration of community field of membership expansion requests and provides discipline to an expansion effort. Further, the rule adequately emphasizes the geographic definition when considering occupational and associational expansion requests. The commenter indicated that overlap protection should focus on those eligible for primary membership not members. The commission agrees and amended the proposed rule to provide that the example used for an acceptable exclusionary language provision would provide limits on the overlap of those eligible for membership. The following is a summary of the comments by the Texins Credit Union: The commenter objected to the text because the phrases dealing with the eligibility of employees of association members for membership in a credit union and what constitutes "a sufficiently close tie to the association" lacked clarity. The commission disagrees because when considered with other subsections of the rule, the phrase is considered to be meaningful. The following is a summary of the comments by the Texas Credit Union League: The commenter questioned whether the commissioner had the authority to reject an application or to merely require limitation or elimination of an overlap. The commission disagrees. The effect of eliminating an overlap is often to deny the request. The following is a summary of the comments by the Credit Union Department staff: The commenter indicated that certain phrases in the definitions of the term "Common Bond" should be deleted because they served no purpose. The commission agrees and amended the proposed rule to delete the phrase "but, does not include employee groups of 300 or less" from the definition of a common bond created as a result of an employment relationship. Additionally, the sentence, "Group comprised of 500 or less members are not considered as an associational group for the purposes of this rule" was deleted for the same reason. The new section is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.301. Field of Membership. State credit unions will be allowed to have, as a minimum, at least as much flexibility as federal credit unions in the regulation of fields of membership. The following guidelines and standards shall be considered by the commissioner in evaluating field of membership requests. (1) Occupational Common Bond. (A) This common bond is based on an employment relationship with a specified employer. Persons sharing this common bond may be geographically dispersed. Employees of a parent corporation and its subsidiaries and persons under contract to work regularly for an enterprise may be considered under a single occupational bond. Each category to be served (e.g., subsidiaries, contractors) should be separately listed, if practical. Persons employed by different entities, even if closely related geographically, persons working at a single shopping center, industrial park, or office building, for example, are not treated as having an occupational common bond. (B) All occupational common bonds should include a geographic definition: e.g., "employees, officials, and persons who work under contract regularly for ABC Corporation or any of its subsidiaries, who work in Houston, Texas." Other acceptable geographic definitions are "employees ... who are paid from .... "or "employees ... who are supervised from ...." (C) The employer may also be included in this common bond--e.g., "ABC Corporation and its subsidiaries." (D) Some examples of occupational group definitions are: (i) "employees of the Scott Manufacturing Company who work in El Paso, Texas ...;" (ii) "employees and elected municipal government in Tyler, Texas ...;" (iii) "employees of Sharp Drillbit Company and its subsidiary, Drillbit Salvage Company, who work in Midland or Houston, Texas ...;" (iv) "personnel of fleet units of the United States Navy home port at Ingleside, Texas ...;" (v) "civilian and military personnel of the United States Government who work or are stationed at, or are attached or assigned to Fort Hood, Texas, or those who are retired from, or their dependents or dependent survivors who are eligible by law or regulations to receive and are receiving benefits or services from that military installation ...;" (vi) "employees of these contractors who work regularly at United States Naval Shipyard in Ingleside, Texas ...;" (vii) "employees, doctor, medical staff, technicians, medical and nursing students who work at Galveston Medical Center at the locations stated: ...;" (viii) "employees and teachers who work for the Fort Worth Independent School District in Fort Worth, Texas ...." (E) Some examples of insufficiently defined occupational groups are: (i) "employees of engineering firms in Houston, Texas;" (No common employer; names of firms must be stated; however, may be the basis for a multiple group.) (ii) "persons employed or working in Dallas, Texas;" (No common employer; names of firms must be stated.) (iii) "persons working in the entertainment industry in Texas." (No common employer; names of firms should be stated.) (2) Associational Common Bonds. (A) This common bond is generally based on groups consisting primarily of natural persons who participate in activities developing common loyalties, mutual benefits, and mutual interest. Qualifying associational groups must hold meetings open to all natural person members at least once a year, must sponsor other activities providing for contact among natural persons members, and must have an authoritative definition of who is eligible for membership--usually, this will be in the associations's constitution and bylaws. The clarity of the associational group's definition and compactness of its membership will be important criteria in reviewing the application. The department policy is to organize associational charters at the lowest organizational level which is economically feasible. (B) Students constitute an associational common bond and may qualify for a credit union charter. (C) Associations formed primarily to obtain a credit union charter do not have a sufficient associational common bond; nor do associations based on a client or customer relationship; an insurance company's customers or a buyer's club, for example. (D) The department normally charters associational credit unions consisting of natural person members. The department will allow nonnatural persons (e.g., corporate sponsor or organizations of members) to be eligible for membership. (E) Moreover, the common bond usually would extend to the association's members and their employees. However, situations may exist where the employees of a member of an association do not have a sufficiently close tie to the association to be included. (F) Homeowner associations, tenant groups, electric co-ops, consumer groups, and other groups of persons having an interest in a particular cause and certain consumer cooperatives may be eligible to receive a charter, however, they must make a strong showing of common activities and economic viability. Newly- organized associations must make similar showing; experience has shown that a new group's efforts are best focused on solidifying member interest before attempting to offer credit union service. (G) All associational common bonds will include a definition of the group and a geographic or operational area limitation, unless the constitution or bylaws of the associational group limit the geographical area--e.g., "Members of the Small Businessmen Association living or working in Dallas, Texas who qualify for membership in accordance with its constitution and bylaws in effect on January 21, 1989." (H) The association itself may also be included in the field of membership; e.g., "ABC Association." (I) Some examples of associational group definitions are: (i) "regular members of Locals 10 and 13, IBEW Union, Houston, Texas, who qualify for membership in accordance with their constitution and bylaws in effect on May 20, 1989;" (ii) "members of the Texas Farm Bureau who live or work in Williamson or adjacent counties, who qualify for membership in accordance with its constitution and bylaws in effect on March 7, 1990;" (iii) "members of the Catholic Church who live or work in Del Rio, Texas;" (iv) "members of the First Baptist Church in Georgetown, Texas;" (v) "regular members of the Corporate Executives Association, located in Dallas, Texas, who live or work in Dallas, Texas, who qualify for membership in accordance with its constitution and bylaws in effect on December 1, 1985;" (vi) "members of the Lower Colorado River Authority located in Austin, Texas." (J) Some examples of insufficiently defined association group definitions are: (i) "members of military service clubs in the State of Texas;" (No single associational tie; specific clubs and locations must be named; may be considered as multiple group.) (ii) veterans of United States military service." (K) Some examples of unacceptable associational common bonds are: (i) "ABC Buyers Club;" (An interest in purchasing only does not meet associational standards.) (ii) "customers of ABC Insurance Company." (Policyholders or customer/client relationships do not meet associational standards.) (3) Community common bonds. (A) This common bond is based upon employment or residence within a clearly defined and specified geographic area(s). Business entities within the specified geographic area(s) may also qualify for membership. Given the diversity of community characteristics throughout the state and the department's goal of making credit union service available to all eligible groups who wish to have it, the department has established the following community common bond guidelines: (i) The geographic area(s) must be clearly specified. (ii) The charter application must establish that the area(s) is recognized as a distinct neighborhood, community, or geographic area(s). (B) A typical definition of a community-based common bond is: "Persons who live or work in are located in ABC, the area of XYZ City bounded by Fern Street on the north, Long Street on the east, Fourth Street on the south, and Elm Avenue on the west." (C) Additional criteria may be considered for an application to convert to or expand an existing community common bond and may include, but not be limited to, providing for a protective exclusion for honoring existing credit unions in the proposed area(s). (D) Some examples of community common bond definitions are: (i) "persons who live or work are located in Brown County, Texas;" (ii) "persons who live or work in and business entities located in Spring Branch Independent School District, Houston, Texas;" (iii) "persons who live or work are located within a ten-mile radius of El Campo, Texas". (E) Some examples of insufficiently defined community common bond definitions are: (i) "persons who live or work in East Texas;" (ii) "persons who live or work in the ship channel section of Houston, Texas." (4) Multiple-Group Charters. (A) The department may charter a credit union to serve a combination of definable occupational, associational and/or community groups. (B) In addition to general chartering requirements, special requirements pertaining to multiple-group applications may be required before the department will grant such a charter. (i) Each group to be included in the proposed field of membership of the credit union must have its own common bond. (ii) Each group must individually request inclusion in the proposed credit union's charter. (5) Overlap protection. (A) The commissioner will consider the extent and effect of an overlap proposed by an application to expand a credit union's field of membership or when a charter application proposes an overlap. (B) The commissioner will weigh the information in support of the application and any information provided by a protesting or affected credit union. If the applicant demonstrates feasibility and no protestant reasonably establishes a basis for denying the request, it shall be approved. (C) If a finding is made that overlap protection is warranted, the commissioner shall reject the application or require the applicant to limit or eliminate the overlap by adding exclusionary language to the text of the amendment, e.g., "excluding persons eligible for primary membership in any occupation or association based credit union that has an office within a specified proximity of the applicant credit union at the time membership is sought." 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 June 17, 1994. TRD-9442544 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.302 The Texas Credit Union Commission adopts an amendment to sec.91.302, concerning the use of mail ballots by credit unions for the election of officials, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1285). The amendment permits mail ballots and requires opportunity for nomination by petition, and appropriate notice and information to all members. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442545 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Powers of Credit Unions 7 TAC sec.91.401 The Texas Credit Union Commission adopts an amendment to sec.91.401, concerning the investment limits in fixed assets, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1285). The amendment reduces the projection period from ten years to five years. The following is a summary of the comments by the Credit Union Department staff: The commenter supported the rule but recommended that a provision should be included to assess credit unions for violations of subsection (c). The commission disagrees. Other enforcement actions are available to the commissioner when credit union officials blatantly violate the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442546 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.402 The Texas Credit Union Commission adopts an amendment to sec.91.402, concerning records retention, with changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1285). The change to subsection (b)(2) added the words "currently effective" to describe certificates or licenses; the change to subsection (b)(3) also added "currently effective" to describe membership agreement documents and account agreements; an additional change to subsection (b)(3) permits the board to use other methods to maintain membership records provided that an attorney gives an opinion that the method retains all legal remedies; the change to subsection (d)(2) clarified record retention for active accounts; the change to subsection (f) deletes a reference to the board to provide clarity. The amendment establishes minimum record retention periods, provides authority for boards to establish periods longer than the minimum and to establish retention periods by board policy for records not specified in the rule, and permits boards to use the latest technology for storage, retrieval, and reproduction of records, provided an attorney's written opinion that the method retains all legal remedies. Comments were received from Southwest Resource Credit Union, Texas Credit Union League, and Dallas Teachers Credit Union. The following is a summary of the comments by the Southwest Resource Credit Union: The commenter objected to the rule because it did not retain the phrase "currently effective" in subsection (b)(2) and (3) to more clearly define which records are subject to the rule. The commission agrees and amended the rule by inserting the phrase into these subsections. The following is a summary of the comments by the Texas Credit Union League: The first comment objected to the proposed rule because it was unclear which records must be retained in original form. The commission agrees and amended the rule to insert the phrase "currently effective" in subsection (b)(2) and (3) to more clearly define which records are subject to the rule, and the phrase "record that has been superseded by another record" in subsection (d)(2) was replaced by the phrase "account agreement which is no longer in effect". A comment that the beginning text deleted from the previous rule was important resulted in agreement by the commission, but no change was made to the rule because this information can be provided by other means. The following is a summary of the comments by the Dallas Teachers Credit Union: The commenter objected to the proposed rule because it was not clear which records must be retained in original form and that the phrase "currently effective" was not used in subsection (b)(2) and (3) of the text. The commission agrees and amended the rule by inserting "currently effective" into the referenced subsections. An objecting comment resulted in agreement by the commission and approval of an amendment to subsection (b)(3) authorizing the retention of membership records in other forms supported by a legal opinion. The commenter objected to the rule because subsection (f) was unclear and appeared to permit a board of directors to set policy conflicting with the intent of the rule. The commission agrees to delete the phrase "or by the board" from subsection (f). The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.402. Records Retention. (a) General. Except for those records described in subsection (b) of this section, the requirement to retain any records under this rule may be satisfied by retention of the original or a copy. The board of directors shall adopt a written policy authorizing the destruction of specified records on a continuing basis upon expiration of specified retention periods. (b) Permanent retention. The following records must be retained permanently in their original form: (1) charter, bylaws, articles of incorporation, and amendments thereto; (2) currently effective certificates or licenses to operate under programs of various government agencies, such as a certificate to act as issuing agent for the sale of United States savings bonds; and (3) currently effective membership applications, joint membership agreements, payable on death agreements, share draft agreements, signature cards, and any other currently effective account agreements related to share or deposit accounts. A credit union board of directors may by policy elect to maintain these membership records in other than original form after obtaining a legal opinion that the proposed methodology continues all legal remedies as if the original has been retained. (c) Ten-year retention. Records which are significant to the continuing operation of the credit union must be retained until the expiration of ten years following the making of the record or the last entry thereon, or the expiration of the applicable statute of limitations, whichever is later. The records are: (1) minutes of meetings of the members and board of directors; (2) journal and cash record; (3) general ledger and subsidiary ledgers; (4) for active accounts, one copy of each individual share and loan ledger or its equivalent; (5) comprehensive annual audit reports including evidence of account verification; and (6) examination reports and official correspondence from the department or any other government agency acting in a regulatory capacity. (d) Five-year retention. The following records must be retained until the expiration of five years following the making of the record or the last entry thereon, or the expiration of the applicable statute of limitations, whichever is later: (1) records related to closed accounts including membership applications, joint membership agreements, payable on death agreements, signature cards, share draft agreements, and any other account agreements; (2) for an active account, any account agreement which is no longer in effect. (e) Reproduction method. Credit unions must use a reproduction process which produces a means to retrieve the information in a readable and useable format. (f) Data processing records. Provisions of this rule apply to records produced by a data processing system. Output reports that substitute for standard conventional records, or that provided the only support for entries in the journal and cash record, should be retained for the minimum period specified in this rule. As with most other records, retention of the original or a copy of the original satisfies the requirements of this rule. (g) Records preservation. All state chartered credit unions are required to maintain a records preservation program to identify and store vital records in order that they may be reconstructed in the event the credit union's records are destroyed. Storage of vital records is the responsibility of the board but may be delegated to the responsible person(s). A vital records storage center should be established at some location that is far enough from the credit union office to avoid the simultaneous loss of both sets of records in the event of a disaster. Records must be stored every calendar quarter within 30 days following quarter-end at which time records stored for the previous quarter may be destroyed. Stored records may be in any form which can be used to reconstruct the credit union's records. This includes machine copies, microfilm, or any other usable copy. The records to be stored shall be for the most recent month- end and are: (1) a list of all shares and/or deposits and loan balances for each member's account. Each balance on the list is to be identified by an account name or number. Multiple balances of either shares or loans to one account shall be listed separately; (2) a financial statement/statement of financial condition which lists all the credit union's assets and liability accounts; (3) a listing of the credit union's banks, insurance policies and investments. This information may be marked "permanent" and updated only when changes are made. (h) Compliance. Credit unions that have some or all of their records maintained by an off-site data processor are considered to be in compliance so long as the processor meets the minimum requirements of this section. Credit unions that have in-house capabilities shall make the necessary provisions to safeguard the backup of data on a continuing basis. 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 June 17, 1994. TRD-9442547 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.sec.91.403, 91.404, 91.407 The Texas Credit Union Department adopts the repeal of sec.sec.91.403, 91.404, and 91.407, concerning EDP and Confidentiality of Member Records, Safe Deposit Box Facilities, and Securities, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1286). Section 91.403 and sec.91.404 are repealed because they have been recast and renumbered; sec.91.407 is repealed because it is obsolete and not needed. There were no comments received regarding repeal of the rules. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442548 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Direction of Affairs 7 TAC sec.91.503 The Texas Credit Union Commission adopts an amendment to sec.91.503, concerning the eligibility to hold office and removal of officers, with changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1286). The only change was to correct the outline format of the rule to be consistent with Texas Register standards. The amendment added two qualifications for serving as a director and increased the number of members necessary to vote on removal of a director. Comments were received from Dallas Teachers Credit Union and the Texas Credit Union League. The following is a summary of the comments by the Dallas Teachers Credit Union: The commenter questioned whether the sanctions in the rule are sufficient to automatically remove a disqualified director or is the board required to take action to remove the individual. The commission disagrees that formal action by the board was necessary and no change was made to the rule because the Application to Serve as a Director will identify any standard that is not met and failure to meet the standard prevents the individual from functioning as a board member. The commenter recommended the word "not" be removed from subsection (c)(4) and (5). The commission noted that the error was corrected prior to publication in the Texas Register as a proposed rule and no other changes were necessary. The following is a comment by the Texas Credit Union League: The commenter noted that the outline format of the rule was not consistent with Texas Register standards. The commission agrees and the outline format was changed with no changes in the text. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.503. Eligibility to Hold Office and Removal of Directors. (a) Election of board of directors. The board of directors shall be elected by and from the membership in accordance with the Act, this section, the credit union's bylaws and election rules established by the board of directors of the credit union. (b) Elective office. No credit union shall adopt or amend articles of incorporation or bylaws to designate or reserve one or more places on the board of directors for any member representative of any classification that restrict or infringe the equal rights of all members to vote for or seek any position on the board of directors of that credit union. (c) Qualifications. No member may be elected to or serve on the board of directors if that member: (1) has been convicted of any criminal offense involving dishonesty or breach of trust; (2) is not eligible for coverage by the blanket bond required under the provisions of the Act, or sec.91.506 of this title (relating to Director Meeting Fees and Bond Requirements); or (3) has caused the credit union to suffer a financial loss; (4) has been removed by any regulatory authority or government agency as an officer, agent, employee, consultant or representative of any credit union or other financial institution; (5) has had the certificate of incorporation or authority or license to do business of any state or federally chartered credit union or other financial institution of which the applicant was an officer, director or key management person suspended, revoked or applicant was personally made subject to an operating directive for cause. (d) Application. Any member nominated for, or seeking election to, the board of directors must submit a written application in the form prescribed by the commissioner, together with any additional information requested by the credit union. The application shall be submitted: (1) to the nominating committee prior to the determination by the committee of its nominees; or (2) to the board chairman within 30 days following the election if the member elected is not nominated by the nominating committee or by petition, or is elected by the board to fill an unexpired term. The applications of elected directors shall be incorporated into and made a part of the minutes of the first board of directors meeting following the election of those directors. Applications of unsuccessful nominees shall be destroyed or returned to the nominee upon request. The application must be on the standard form promulgated by the commissioner and shall establish at a minimum that the nominee or director designate: (A) has not been convicted of a criminal offense involving dishonesty or breach of trust or has not been convicted of any felony; (B) is eligible for coverage under the blanket bond required by this Act, sec.5.06 and any rules adopted under this Act; (C) has not defaulted in the payment of a voluntary obligation to the credit union or has otherwise caused the credit union to incur a financial loss; (D) has not been removed by any regulatory authority or government agency as an officer, agent, employee, consultant or representative of any credit union or other financial institution; (E) has not had the certificate of incorporation or authority or license to do business of any state or federally chartered credit union or other financial institution of which the applicant was an officer, director or key management person suspended, revoked or applicant was personally made subject to an operating directive for cause. Failure to complete and return the application or failure to take the prescribed oath of office shall disqualify the nominee or director designate from holding office. (e) Removal of directors. In addition to removal of directors by the board of directors as provided in the bylaws, the members may remove a director by a vote of two-thirds of those members voting at any special or regular meeting; provided however, that the members voting shall constitute not less than 10% of the membership eligible to vote in any election, and provided that all members are given at least 30 days' notice of the meeting which shall state the reasons why the meeting has been called. 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 June 17, 1994. TRD-9442549 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.506 The Texas Credit Union Commission adopts an amendment to sec.91.506, concerning director meeting fees and bond requirements, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1287). The amendment was minor language changes with no change in the intent of the rule. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442550 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Capital Accounts 7 TAC sec.91.601 The Texas Credit Union Commission adopts an amendment to sec.91.601, concerning the authorization of credit unions to offer share and deposit to members with changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1289). The only change was to delete the phrase "Consistent with this section" in subsection (a). The amendment will provide greater flexibility to credit unions in structuring member savings accounts. Comments were received from Dallas Teachers Credit Union and Southwest Resource Credit Union. The following is a summary of comments by the Dallas Teachers Credit Union: The commenter expressed concern that "comprehensive asset liability management policy" was not defined and that credit unions needed to know what should be included in the policy. The commission agrees that the term "asset liability policy" may not be well understood but providing regulatory guidance within a rule would place a burden on smaller credit unions and no change was made to the rule. The commenter also expressed concern that a standard for liquidity levels should be established in the rule. The commission disagrees and the rule was not changed because the many variables between credit unions preclude a standard that could be applied uniformly to all credit unions. The commenter suggested deletion of the phrase "consistent with this section" in subsection (a). The commission agrees and the deletion was made. The following is a summary of comments by the Southwest Resource Credit Union: The commenter expressed concern that "comprehensive asset liability management policy" was not defined and that credit unions needed to know what should be included in the policy. The commission agrees that the term "asset liability policy" may not be well understood but providing regulatory guidance within a rule would place a burden on smaller credit unions and no change was made to the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.601. Share and Deposit Accounts. (a) A credit union may offer share and deposit accounts under terms and at rates established by policies approved by the board of directors. Before instituting a new program or within 90 days from the effective date of this rule, each credit union shall adopt and implement: (1) a comprehensive asset liability management policy; and (2) policies and procedures for determining and maintaining adequate liquidity levels. (b) Capital. All deposit and share accounts shall be considered capital for regulatory purposes. 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 June 17, 1994. TRD-9442551 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.602 The Texas Credit Union Department adopts the repeal of sec.91.602, concerning deposit accounts, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1289). Rule sec.91.602 is repealed because it has been recast and renumbered. There were no comments received regarding repeal of the rule. The repeal is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442552 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.608 The Texas Credit Union Commission adopts new sec.91.608, concerning the confidentiality of members accounts, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1290). The section is to protect the member from having their individual credit union records disclosed improperly. The following is a summary of the comments by the Credit Union Department staff: Staff commented that the rule should include a prohibition against employees serving as elected credit union officials. The commission disagrees. Despite the fact that conflicts of interest sometimes occur when an individual credit union employee serves in more than one role within the organization, sec.91.506(c)(1) provides adequate controls if an individual's pecuniary interest is involved. The new section is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442553 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Capital Accounts 7 TAC sec.91.610 The Texas Credit Union Commission adopts new sec.91.610, concerning safe deposit box facilities, with one change to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1290). The title Safe Deposit Box Facilities is added to the rule. The section replaces sec.91.401. There were no comments received regarding adoption of the new rule. The new section is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.610. Safe Deposit Box Facilities. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Credit union-This term includes all state or federal credit unions that have been assigned a routing number unique to that institution. (2) Routing number-The routing and transit number issued to the credit union under the auspices of the American Bankers Association and as listed in the American Bankers Association's "Key to Routing Numbers." (b) Imprinting requirements. A credit union which has been issued a routing number shall imprint that routing number on safe deposit box keys on either the head of the key or the shank of the key if there is adequate room. The typical locations to be used are indicated in the following instructions and diagram. The imprint can be made anywhere on the key that has the required space available. It can be either on the head or on the shank of the key. When positioning the die on the key, be careful to place the die on the key where it will imprint on a flat surface and not in the area of the key cuts or on any of the shank ridges or grooves. Imprinting in these areas may interfere with the proper working of the key in the lock and may cause damage. In the event these standard areas for the location of the imprint are unavailable, either because of grooves on the key shank or the fact that the head of the key already has names and other numbers imprinted on it, then the credit union may attach to the key a tag imprinted with the routing number. The tag used must be of such a nature as to be secure. Thus, a paper or cardboard tag or a tag affixed with string will not be acceptable. However, any other medium such as plastic or metal which can retain an imprint of a number shall be acceptable. The tag may be attached in any way to assure its affixation to the key. Typically, this will mean inserting the tag or a device to affix the tag through the hole in the head of the key normally used for placing keys on key chains. The tag method shall not be used if there is adequate room on the key itself for imprinting the numbers. There are four standard areas for the location of the imprinted routing number. These include: the head of the key, the shank of the key, and either place on the reverse side of the key. The standard imprint areas are shown as follows. [graphic] (c) Branch designation. A credit union may, but is not required to, add a three-digit branch designation to its routing number. Thus, the main credit union facility should receive the designation "001" and branch facilities should receive numbers consecutively beginning with "002" with successive numbers as needed. However, the credit union may control the branch numbering system used provided that the credit union must maintain a master list of branch designations used for this purpose. The master list should be maintained at the main office of the credit union and shall include the following information: three-digit branch designation and address of facility. The credit union then may imprint safe deposit box keys or tags with the routing number plus three- digit branch designation for full identification of the facility. (d) Report of defaced or altered key. Within 10 days after an officer or employee of a credit union observes that a key used to access a safe deposit box has had the routing number altered or defaced or the tag removed, a report shall be prepared of such incident. The report shall be on a form promulgated by the Credit Union Department in the form of the attached Exhibit A. The report should be submitted to the Department of Public Safety, attention: Criminal Law Enforcement, Box 4087, Austin, Texas 78773-0001. The report should be mailed no later than ten days after the incident. The credit union should retain one copy of the incident report for a period of three years. Nothing in this rule nor in the Act shall require a credit union to inspect routing numbers imprinted on a key or an attached tag to determine if the number has been altered or defaced. (e) Effective date; applicability to existing keys. A credit union must imprint all safe deposit box keys on or after September 1, 1992. Credit unions may begin imprinting keys prior to that date. The imprinting requirement shall apply to all keys currently outstanding as well as to all keys issued after September 1, 1992. However, keys for boxes rented prior to September 1, 1992, need not be imprinted with the routing number unless and until a member presents a safe deposit box key at a credit union for access to a box. Nothing in this rule or the Act shall be construed to require a credit union to provide notice to its safe deposit box users or to otherwise require such members to present their keys for imprinting. However, on the first date after September 1, 1992, that a member presents a key which has not been imprinted, the credit union shall imprint the key with the routing numbers as required by Texas Civil Statutes, Article 2461-6.10 (d). (f) Effect of change in routing number. In the event a credit union's routing number is changed as a result of a merger, acquisition, or other change, safe deposit box keys need not be replaced with a new routing number provided that the credit union maintains a master list of the routing numbers used to imprint keys. [graphic] 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 June 17, 1994. TRD-9442554 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Loans 7 TAC sec.91.701 The Texas Credit Union Commission adopts an amendment to sec.91.701, concerning loans, personal and real estate, with changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1293). Subsection (c)(1)(B) was changed to add "or the loan to value ratio is maintained at 70% or less at all times." Subsection (c)(1)(D) was changed to increase the maximum loan amount from 80% to 90%. Subsection (c)(2) (C) and (D) regarding property insurance and recording documents were added to the section dealing with second liens. Subsection (c)(2)(A) was changed to add "except that property improvement loan to value ratios may be based upon the projected appraised value at completion." The amendment will provide greater flexibility to credit union officials to offer and structure loan programs for their members. Comments were received from Southwest Resource Credit Union, the Texas Credit Union League, Dallas Teachers Credit Union, Community Credit Union, and Credit Union Department Staff. The following is a summary of the comments by the Southwest Resource Credit Union: The commenter supported the rule but suggested that the rule should include specific authority for MasterCard or other credit card loan programs. The commission disagrees. A change in the rule is not needed because an interpretative letter by the commissioner or written approval under subsection (b)(3) provides authority for these loans. The following is a summary of comments by the Texas Credit Union League: The commenter supported the rule but recommended that the rule include a provision that escrow account requirements may be waived for loans with a low loan-to- value ratio. The commission agrees and amended subsection (c)(1)(B) to permit waiving of the escrow account if loan-to-value ratio is less then 70%. The commenter objected to the prohibition of commissions, fees, or compensation in connection with any loan because it did not permit an incentive compensation program for credit union employees. The commission disagrees that employee incentive programs are covered by this rule, and no change was made because this prohibition deals with payments from persons or entities other than the credit union. The following is a summary of comments by the Dallas Teachers Credit Union: The commenter objected to the 80% limitation in subsection (c)(1)(D) and recommended that the maximum loan amount for loans without mortgage insurance be changed to 90% of the purchase price or appraised value consistent with other mortgage lenders. The commission agrees, and the rule was amended to reflect 90% instead of 80%. The commenter objected to the rule because second lien real estate loans did not include such requirements as property insurance, recording instruments, and title insurance. The commission agrees and the rule was change to include requirements for property insurance and recording instruments in subsection (c)(2). The commenter supported the rule but recommended that the loan-to-value ratio for property improvement loans be based upon the appraised valuation of the property after completion of the improvements. The commission agrees and amended subsection (c)(2)(A) to permit valuation to be based upon the projected value of property after completion. The following is a summary of comments by the Community Credit Union: The commenter supported the rule but recommended that the rule include a provision that escrow account requirements may be waived for loans with a low loan-to- value ratio. The commission agrees and amended subsection (c)(1)(B) to permit waiving of the escrow account if loan-to-value ratio is less then 70%. The following is a summary of comments by the Credit Union Department staff: The commenter supported the rule but recommended that the rule include a provision that escrow account requirements may be waived for loans with a low loan-to-value ratio. The commission agrees and amended subsection (c)(1)(B) to permit waiving of the escrow account if loan-to-value ratio is less then 70%. The commenter supported the rule but recommended that closed- end loans documents be required on all, but line-of-credit loans. The commission disagrees. No change to the rule was made because there was no value to requirement. The commenter supported the rule but recommended a requirement that interim construction loans include draw schedules and the source of permanent financing prior to funding. The commission disagrees with the recommendation because these requirements fall into the category of sound business practices which credit unions are subject to under the bylaws, sec.5. 09 and would be more appropriately addressed by the board in written policy. The commenter objected to the permissibility of title opinions in subsection (c)(1)(C) and recommended that a title insurance policy be required. The commission disagrees and no change was made to the rule because an attorney's opinion on the title is acceptable. The commenter supported the rule but recommended that the phrase "or in any other case" be defined or interpreted. The commission agrees but did not change the rule because an interpretation of the phrase "or in any other case" will be developed and notification will be through the Department's Newsletter. The commenter supported but recommended that real estate loans be amortized. The commission disagrees and no change was made to the rule because credit unions may provide an amortization schedule to members with real estate loans for the purpose of controlling delinquency of loans with long-term maturities, but no requirement is deemed necessary. The commenter objected to the deletion of sections of the previous rule relating to non-preferential treatment, limitation on fixed rate loans, secured loans, unsecured installment loans, balloon payment loans, and single-payment term loans and recommended that they be reinstated in the proposed rule. The commission did not agree that these need to be reinstated because the intent of the rule is to provide broad discretion to the board of directors is establishing lending programs, procedures, and policies. The commenter supported the rule on loan policies but recommended that the rule require the credit union to include specify industry guidelines and criteria to be used in granting credit as a part of their lending policies. The commission disagrees that specificity was needed and the rule was not changed because a model loan policy will be developed within the agency and the intent of the rule is to provide broad discretion to the board of directors. The commenter supported the rule on loan policies but recommended that the rule require extension and loan workout policies. The commission agrees that the practice is reasonable, but disagrees regarding any change to the rule because the board can address workouts and loan extensions in lending policy. The commenter recommended an addition to the rule to require the credit union to charge off of loans delinquent in excess of six months or loans with inadequate loan-to-value ratios. The commission disagrees that a requirement was necessary and no change was made to the rule because this would require credit unions to occasionally write-off a loan prematurely and perhaps diminish collection efforts. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.701. Loans. (a) General. A credit union may make loans and extend credit in accordance with the Act, these Rules, and other applicable law. (b) Loans not secured by real estate. The maturity of a loan not secured by a lien on real estate may not, at the time the loan is executed, exceed 15 years unless: (1) the purpose of the loan is to finance the purchase of a manufactured home and the loan is secured by a first lien, in which case the maturity may not exceed 20 years; (2) the loan is at least 90% insured or guaranteed as to both principal and interest by the State of Texas or the United States or any agency or instrumentality thereof; or (3) the commissioner has approved, in writing, and prior to the making of a loan or class of loans, a greater maturity for that loan or class of loans. (c) Loans secured by real estate. For loans secured, in whole or in part, by a lien on real estate, the requirements described in this subsection shall apply unless waived in writing by the commissioner. (1) Loans secured by a first lien on real estate. A loan, or any refinancing thereof, secured by a first lien on real estate shall be subject to the requirements described in this paragraph as applicable. (A) Maximum Maturity; Loan to Value ratio. (i) A loan secured by a lien on improved residential real estate occupied by the owner shall have, at the time the loan is executed, a maximum maturity of 40 years and a loan to value ratio not greater than 5%. (ii) A loan secured by a lien on improved real estate not to be occupied by the owner shall have, at the time the loan is executed, a maximum maturity of 30 years and a loan to value ratio not greater than 80%. (iii) An interim construction loan shall have, at the time the loan is executed a maximum maturity of 18 months and the amount of the loan shall not exceed 90% of the projected appraised value at completion or the estimated cost of construction, whichever is less. (iv) Any other loan not described in clauses (i), (ii), or (iii) of this paragraph shall have, at the time the loan is executed, a maximum maturity of 20 years and a loan to value ratio not greater than 80%. (B) Escrow; pledged accounts. A loan, other than an interim construction loan, shall have as a requirement in its terms and conditions that the borrower must pay, in addition to principal and interest, an amount to be deposited to an escrow account, or otherwise applied as provided in the credit union's loan policies, for estimated annual taxes, assessments, insurance premiums, and other charges upon the real estate securing the loan. The additional payment may be waived if an amount equal to at least the estimated annual insurance premium and annual taxes is pledged to and maintained at the credit union during the term of the loan, the loan is not in arrears or delinquent at any time, and the credit union is furnished with evidence of payment of taxes and insurance each year, or the loan to value ratio is maintained at 70% or less at all times. (C) Title opinion; Title insurance. A loan may not be made by the credit union unless it is furnished with either a written title opinion of an attorney or a satisfactory policy of title insurance in the principal amount of the loan, which policy shall be issued by a title company authorized to insure titles in this state, insuring that the lien is a first and prior lien. (D) Private Mortgage Insurance or U.S. Government Guaranteed Loans. Unless a real estate loan is insured by an agency of the United States Government or by a private mortgage insurance company, the maximum loan amount is 90% of the purchase price or appraised value of the property, whichever is less. (E) Property insurance. Any loan secured by a lien on improved real estate must require in its terms and conditions that fire and extended coverage be maintained in an amount not less than the loan balance (plus any amount secured by prior liens) or the replacement value of improvements, whichever is less, and that the credit union be named as loss payee. (F) Recording instruments. Every mortgage, deed of trust, or other instrument creating, constituting, or transferring a lien securing a loan shall be properly and timely recorded in the appropriate deed records. (G) Valuation. Every loan must have included in its documentation evidence of the market value of the real estate determined in accordance with written board policy or, if the amount of the loan exceeds $50,000, a report of an appraisal prepared by a state certified appraiser. (2) Other real estate loans; Maximum maturity; Loan to value ratio. A loan, or any refinancing thereof, secured by a lien on real estate other than a first lien: (A) which is not an interim construction loan, shall have, at the time the loan is executed a maximum maturity of 20 years and, if occupied by the owner or will be so occupied, a loan to value ratio not greater than 90%, or in any other case 80%, except that property improvement loan to value ratios may be based upon the projected appraised value at completion; or (B) which is an interim construction loan, shall have, at the time the loan is executed, a maximum maturity of 18 months and the amount of the loan shall not exceed 80% of the projected appraisal value at completion or the estimated cost of construction, whichever is less; (C) property insurance. Any loan secured by a lien on improved real estate must require in its terms and conditions that fire and extended coverage be maintained in an amount not less than the loan balance (plus any amount secured by prior liens) or the replacement value of improvements, whichever is less, and that the credit union be named as loss payee; (D) recording instruments. Every mortgage, deed of trust, or other instrument creating, constituting, or transferring a lien securing a loan shall be properly and timely recorded in the appropriate deed records, except for those instances when recording is not required under an applicable state or federal guaranty program. (d) Prohibited activity. A credit union shall not make a loan or extend credit if any commission, fee, or compensation of any type from any person or entity other than the credit union is to be received by any credit union official or employee, or an immediate family member of either, in connection with underwriting, insuring, procuring, servicing, or collecting the loan or extension of credit. (e) Indirect Financing. A credit union shall provide written notice to the commissioner at least 30 days prior to implementing a program of indirect financing of motor vehicles or other chattels. (f) Loan policies. The board of directors shall establish, implement, and maintain prudent and reasonable written loan policies that specify guidelines and criteria to be used in making loans and extending credit consistent with this rule. 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 June 17, 1994. TRD-9442555 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.705 The Texas Credit Union Commission adopts new section sec.91.705, concerning loans to officials and employees, with changes to the proposed text aspublished in February 22, 1994, issue of the Texas Register (19 TexReg 1290). Changes in subsection (a) were made to be consistent with the requirements in the Act, sec.7.05; changes in subparagraph (B) were made to be consistent with the requirements in the Act, sec.7.05. The section increases the limits on unsecured and secured loans that must be approved by the board of directors and removes approval by the board for any loan for the homestead of the official or employee. The following is a comment by the Texins Credit Union: The commenter supported the rule but stated that subsections (a) and (b) were inconsistent with one another regarding which loans need to be approved by the board and the rule was also inconsistent with the Act. The commission agrees and the rule was amended to include directors, employees, loan officers, credit manager, members of the credit committee, and members of the immediate family of any of these employees or officials. The new section is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.705. Loans to Officials. (a) The rates, terms, conditions, and availability of any loan or extension of credit made to, or endorsed or guaranteed by, a director, employee, loan officer, credit manager, members of the credit committee or an immediate family member of any such individual shall not be more favorable than the rates, terms, conditions, and availability of comparable loans or credit to other credit union members. (b) Before making a loan, extending credit, or becoming contractually liable to make a loan or extend credit to a director, employee, loan officer, credit manager, members of the credit committee or members of their immediate families, the board of directors must approve the transaction if the loan or the extension of credit or aggregate of outstanding loans or extensions of credit to any one person, the person's business interests, and members of the person's immediate family is greater than $25,000 if unsecured credit or $50, 000 if secured credit, plus pledged shares and deposits. A loan secured by a lien on improved residential real estate which is the homestead and is actually occupied by the borrower shall not be subject to, or included in the aggregate amounts included in this section. (c) For purposes of this section, the term immediate family member includes a spouse or other family member living in the same household. 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 June 17, 1994. TRD-9442556 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.708 The Texas Credit Union Department adopts the repeal of sec.91.708, concerning late charges for delinquent loans, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1297). Rule sec.91.708 is repealed because it is not necessary. The bylaws permit establishment of late fees by board policy. There were no comments received regarding repeal of the rule. The repeal is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442557 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Investments 7 TAC sec.91.802 The Texas Credit Union Commission adopts an amendment to sec.91.802, concerning investments, with changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1298). A change in subsection (a)(7)(B) was made to clarify the rule that had been stated in an unclear manner. The amendment clarifies investment types of repurchase agreements. The following is a summary of comments by the Credit Union Department staff: The commenter supported the rule but noted that subsection (a)(7)(B), as proposed, was awkward and unclear. The commission agrees and the rule was amended to clarify repurchase investments with financial institutions. The commenter supported the rule but recommended that the rule include other requirements when a credit union is using a broker to place investments. The commission disagrees with the recommendation and no change was made to the rule because the board of directors must adopt written investment policies which should address the use of brokers. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.802. Other Investments. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Bailment for hire contract-A contract whereby a third party, bank, or other financial institution, for a fee, agrees to exercise ordinary care in protecting the securities held in safekeeping for its customers. (2) Bankers' acceptance-A time draft that is drawn on and accepted by a bank, and that represents an irrevocable obligation of the bank. (3) Cash forward agreement-An agreement to purchase or sell a security with delivery and acceptance being mandatory and at a future date in excess of 30 days from the trade date. (4) Eurodollar deposit-A deposit in a foreign branch of a United States financial institution. (5) Federal funds transaction-A short-term or open-ended transfer of funds to a financial institution. (6) Financial institution-A bank or similar entity savings and loan association, savings association, or mutual savings bank insured by an agency of the federal government, or a federal or state-chartered credit union or the National Credit Union Central Liquidity Facility. (7) Repurchase transaction-A transaction in which a credit union agrees to purchase a security from a vendor and to resell the same or any identical security to that vendor at a later date. A repurchase transaction may be one of the three following types. (A) An investment-type repurchase transaction is a repurchase transaction where the credit union purchasing the security takes physical possession of the security, or receives written confirmation of the purchase and a custodial or safekeeping receipt from a third party under a written bailment for hire contract, or is recorded as the owner of the security through the Federal Reserve book-entry system. (B) A financial institution-type repurchase transaction is a repurchase transaction with a financial institution. (C) A loan-type repurchase transaction is any repurchase transaction that does not qualify as an investment-type or financial institution-type repurchase transaction. (8) Reverse repurchase transaction-A transaction whereby a credit union agrees to sell a security to a purchaser and to repurchase the same or any identical security from that purchaser at a future date and at a specified price. (9) Security-Any security, obligation, account, deposit, or other item authorized for investment by the Act or this section other than an investment authorized by the Act, sec.8.01(1). (10) Settlement date-The date originally agreed to by a credit union and a vendor for settlement of the purchase or sale of a security. (11) Trade date-The date a credit union originally agrees, whether orally or in writing, to enter into the purchase or sale of a security. (12) Yankee Dollar deposit-A deposit in a United States branch of a foreign bank licensed to do business in the state in which it is located, or a deposit in a state chartered, foreign controlled bank. (13) Mortgage related security-A security which meets the definition of mortgage related security in United States Code Annotated, Title 15, sec.78c(a)(41). (14) Asset-backed security-A bond, note, or other obligation issued by a financial institution, trust, insurance company, or other corporation secured by either a pool of loans, extensions of credit which are unsecured or secured by personal property, or a pool of personal property leases. (b) Authorized activities. (1) General authority. A credit union may contract for the purchase or sale of a security provided that delivery of the security is to be made within 30 days from the trade date. (2) Cash forward agreements. A credit union may enter into a cash forward agreement to purchase or sell a security, provided that: (A) the period from the trade date to the settlement date does not exceed 180 days; (B) if the credit union is the purchaser, it has written cash flow projections evidencing its ability to purchase the security; (C) if the credit union is the seller, it owns the security on the trade date; and (D) the cash forward agreement is settled on a cash basis at the settlement date. (3) Repurchase transactions. A credit union may enter into an investment-type repurchase transaction or a financial institution-type repurchase transaction provided the purchase price of the security obtained in the transaction is at or below the market price. A repurchase transaction not qualifying as either an investment-type or financial institution-type repurchase transaction will be considered a loan-type repurchase transaction subject to the Act. (4) Reverse repurchase transactions. A credit union may enter into a reverse repurchase transaction. A reverse repurchase transaction is a borrowing transaction subject to the Act. (5) Federal funds. A credit union may enter into a federal funds transaction with a financial institution, provided that the interest or other consideration received from the financial institution is at the market rate for federal funds transactions and that the transaction has a maturity of one or more business days or the credit union is able to require repayment at any time. (6) Yankee Dollars. A credit union may invest in Yankee Dollar deposits. (7) Eurodollars. A credit union may invest in Eurodollar deposits. (8) Bankers' acceptance. A credit union may invest in bankers' acceptances. (9) Open-end Investment Companies (Mutual Funds). A credit union may invest funds, not used in loans to members, in an open-end investment company established for investing directly or collectively in any authorized investment. A credit union shall record each investment in an open-end investment company at the lower of its cost or market value, determined at the end of each month, and net of all purchase and load fees. (10) Government-sponsored enterprises. A credit union may invest in government-sponsored enterprise obligations such as Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association and the Student Loan Marketing Association. (11) Commercial paper. A credit union may invest in commercial paper having a rating of A1 or P1 by Standard & Poor's or Moody's rating service. (12) Corporate bonds. A credit union may invest in corporate bonds that have a rating of "A" or better by Standard & Poor's or Moody's rating service and remaining maturities of five years or less. (13) Mortgage related securities. A credit union may invest in mortgage related securities, except not in the "accrual bond" (or Z-bonds) or the residual interest of the mortgage related security. (14) Asset-backed securities. A credit union may invest in asset-backed securities rated AA or better by Standard & Poor's or having an equivalent rating from another nationally recognized rating agency. (c) Reporting investment activities to the board of directors. The president shall provide the board of directors a monthly comprehensive report of investment activities, including: (1) investments purchased and sold during the month; (2) unrealized market gains or losses compared to book value at month's end; (3) calculated yield to maturity (current yield on mutual funds) on each outstanding investment as of month's end; (4) net asset value (NAV) or market value of each marketable investment; (5) total book value of investments outstanding at month's end; (6) the total amount of investments having maturities exceeding three years and the ratio of the investments to total reserves and undivided earnings; (7) unrecorded and unreported obligations to buy or sell investments; and (8) amounts of investments, other than designated depositories, in other institutions which are not fully insured by the Federal Deposit Insurance Corporation, National Credit Union Share Insurance Fund, or federal or state governments or their agencies. 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 June 17, 1994. TRD-9442558 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.803 The Texas Credit Union Commission adopts an amendment to sec.91.803, concerning investments in other financial institutions, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register . (19 TexReg 1299). The amendment contains grammatical changes permitting credit unions to invest in financial institutions similar to banks. There were no comments received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442559 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: Febraury 22, 1994 For further information, please call: (512) 837-9236 Reserves and Dividends 7 TAC sec.91.901 The Texas Credit Union Commission adopts an amendment to sec.91.901, concerning reserving requirements, with changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1299). A change in subsection (c)(11) was made to remove reference to "the lending Federal credit union." The amendment will make the reserving requirement consistent with that of the share insurer and eliminate confusion on method of calculation. Comments were received from the Credit Union Department Staff and Dallas Teachers Credit Union. The following is a comment by the Credit Union Department Staff: The commenter supported with the rule but suggested deletion of subsection (c)(1) because charged off loans will be charged to the Allowance for Loan Loss Account. The commission agrees that loans will be charged off against the Allowance for Loan Loss account. The commission did not change the rule, however, because without the limitation as stated, credit unions might consider these appropriated retained earnings available for other uses. The following is a comment by the Dallas Teachers Credit Union: The commenter agrees with the rule but recommended that the definition of risk assets in subsection (c)(11) should delete the reference to a Federal credit union. The commission agrees and the rule was amend to include any credit union. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.91.901. Reserve Requirements. (a) In accordance with the requirements of Act, sec.9.01, state-chartered credit unions shall set aside a portion of their current gross income, prior to the declaration or payment of dividends, at the close of each dividend period, as follows. (1) A credit union in operation for more than four years and having assets of $500,000 or more shall set aside 10 per centum of gross income until the regular reserve shall equal 4 per centum of the total of outstanding loans and risk assets, then 5 per centum of gross income until the regular reserve shall equal 6 per centum of the total of outstanding loans and risk assets. The totals of the Regular Reserve, the Allowance for Loan Losses Account and the Allowance for Investment Losses shall be combined for determining the applicable percentage of gross income to be transferred to the Regular Reserve. (2) A credit union in operation less than four years or having assets of less than $500,000 shall set aside 10 per centum of gross income until the regular reserve shall equal 7-1/2 per centum of the total of outstanding loans and risk assets, then 5 per centum of gross income until the regular reserve shall equal 10 per centum of the total of outstanding loans and risk assets. (3) Whenever the regular reserve falls below the stated per centum of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the stated reserve goals. (4) Special reserves. In addition to the regular reserve, special reserves to protect the interest of members may be established by board resolution or by order of the commissioner, from current income or from undivided earnings. In lieu of establishing a special reserve, the commissioner may direct that all or a portion of the undivided earnings and any other reserve fund be restricted. In either case, such directives must be given in writing and state with reasonable specificity the reasons for such directives. (b) Reserves to be used only as follows: (1) to charge off uncollectible loans; (2) to make other distributions as allowed by law and approved by the commissioner. (c) For the purpose of establishing the reserves, all assets except the following shall be considered risk assets: (1) cash on hand; (2) deposits and/or shares in federally or state-insured banks, savings and loan associations, and credit unions that have a remaining maturity of five years or less; (3) assets that have a remaining maturity of five years or less and are insured by, fully guaranteed as to principal and interest by, or due from the United States Government, its agencies, the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation or the Government National Mortgage Association. Collateralized mortgage obligations that are comprised of government guaranteed mortgage loans shall be included in this asset category; (4) loans to other credit unions that have a remaining maturity of five years or less; (5) student loans insured under the provisions of Title IV, Part B of the Higher Education Act of 1965 (20 United States Code, sec.1071, et seq) or similar state insurance programs that have a remaining maturity of five years or less; (6) loans that have a remaining maturity of five years or less and are fully insured or guaranteed by the Federal or a state government or any agency of either; (7) shares or deposits in a corporate credit union that have a remaining maturity of five years or less, other than Membership Capital Share Deposit accounts. A corporate credit union is defined as a credit union that: (A) is operated primarily for the purpose of serving other credit unions; (B) is designated by the National Credit Union Administration as a corporate credit union; and (C) limits natural person members to the minimum required by state or federal law to charter and operate the credit union; (8) common trust investments, including mutual funds, which deal exclusively in investments authorized by the Federal Credit Union Act that are either carried at the lower cost or market, or are marked to market value monthly; (9) prepaid expenses; (10) accrued interest on non-risk investments; (11) loans fully secured by a pledge of shares or deposits in the credit union, equal to and maintained to at least the amount of the loan outstanding; (12) loans which are purchased from liquidating credit unions and guaranteed by the National Credit Union Administration; (13) National Credit Union Share Insurance Fund Guaranty Accounts; (14) investments in shares of the National Credit Union Administration Central Liquidity Facility; (15) assets included in paragraphs (2), (3), (4), (5), (6), and (7) of this subsection with maturities greater than three years are exempt from risk assets if the asset is being carried on the credit union's records at the lower of cost or market, or are being marked to market value monthly; (16) assets included in paragraphs (2), (3), (4), (5), (6), and (7) of this subsection with remaining maturities greater than three years are exempt from risk assets provided they meet the following criteria, irrespective of whether or not the asset is being carried on the credit union's records at the lower of cost or market, or are being marked to market value monthly: (A) the interest rate is reset at least annually; (B) the interest rate of the instrument is less than the maximum allowable interest rate for the instrument on the date of the required reserve transfer; (C) the interest rate of the instrument varies directly (not inversely) with the index upon which it is based and is not reset as a multiple of the change in the related index; (17) fixed assets; (A) any office, branch office, suboffice, service center, parking lot, or any other facility or real estate where the credit union transacts business; (B) furniture, fixtures and equipment including all office furnishings, office machines, computer hardware and software, automated terminals, heating and cooling equipment; and (18) deposit in the National Credit Union's capitalization account balance of 1.0% of insured shares. 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 June 17, 1994. TRD-9442560 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.91.902 The Texas Credit Union Commission adopts an amendment to sec.91.902, concerning dividends without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1301). The amendment clarifies eligibility for dividends. The following is a summary of comments by the Credit Union Department staff: The commenter supported the rule, but suggested that it should contain a requirement that prior written approval of the commissioner be obtained for the payment of dividends when the credit union is subject to dividend restrictions or a Cease and Desist Order. The commission disagrees because adequate administrative authority is provided in sec.91.901(a)(4). The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442561 Robert W. Rogers Commissioner Credit Union Department Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Chapter 93. Administrative Procedures Common Terms 7 TAC sec.93.1 The Texas Credit Union Commission adopts an amendment to sec.93.1, concerning definitions, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1302). The amendment provides definitions and acronyms for individuals using rules in Chapter 93. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442570 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 General Rules 7 TAC sec.93.11 The Texas Credit Union Commission adopts an amendment to sec.sec.93.11, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1303). The amendment addresses the delegation of authority to an authorized representative of the commission or commissioner. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442571 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.12 The Texas Credit Union Commission adopts an amendment to sec.93.12, concerning requests for hearings before the State Office of Administrative Hearings, (SOAH) with changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1303). The amendment provides the commissioner with the authority to refer a matter to SOAH prior to entering a preliminary decision. Texins Credit Union commented on the proposed rule. The following is a summary of comments by Texins Credit Union: The commenter supported the rule, but indicated that the proposed rule failed to clarify whether or not the commissioner could set a hearing prior to making a preliminary decision on an application. The commission agrees. The rule was changed to provide that the commissioner may call a SOAH hearing prior to a preliminary decision. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union Act. sec.93.12. Finality and Request for SOAH Hearing. Except as provided otherwise by this chapter, the preliminary decision of the commissioner becomes final 20 days from the date of service, unless prior thereto, an applicant or protestant files a written request for hearing before SOAH. The commissioner may, at the commissioner's sole discretion, refer any matter to SOAH for hearing prior to entering a preliminary decision when a hearing is requested by a party, whether or not it has been referred to ADR. 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 June 17, 1994. TRD-9442572 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.13 The Texas Credit Union Commission adopts an amendment to sec.93.13, concerning administrative procedures associated with hearings, without changes, to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1304). The amendment authorizes referral by the commissioner to Alternative Dispute Resolution prior to setting a SOAH hearing. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442573 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.14 The Texas Credit Union Commission adopts an amendment to sec.93.14, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1304). The amendment establishes procedures for appeals of applications to incorporate, amendments of bylaws, and mergers or consolidations. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442574 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.15 The Texas Credit Union Commission adopts an amendment to sec.93.15, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1304). The amendment establishes procedures for appeals of applications for certificates of authority and all other applications for which no specific procedure is provided. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442575 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.16 The Texas Credit Union Commission adopts an amendment to sec.93.16, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1305). The amendment establishes procedures for appeals of Cease and Desist Orders and Orders for Removal. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442576 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.17 The Texas Credit Union Commission adopts an amendment to sec.93.17 concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1305). The amendment establishes procedures for appeals of Orders of Conservation and Suspension. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442577 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.18 The Texas Credit Union Commission adopts an amendment to sec.93.18, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1306). The amendment permits the hearing to continue in the absence of a party. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442578 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.19 The Texas Credit Union Commission adopts an amendment to sec.93.19, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1306). The amendment establishes the method of notice and service of pleadings to parties. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442579 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.20 The Texas Credit Union Commission adopts an amendment to sec.93.20, concerning administrative procedures associated with hearings without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1306). The amendment establishes the timing for serving interrogatories among parties. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442580 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.21 The Texas Credit Union Commission adopts an amendment to sec.93.21, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1307). The amendment permits a party to request admission of another party once the hearing has been scheduled by SOAH. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442581 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.22 The Texas Credit Union Commission adopts an amendment to sec.93.22, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1307). The amendment provides for a pre-hearing conference once a hearing has been scheduled before SOAH and states the purpose of the pre-hearing conference. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442582 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.23 The Texas Credit Union Commission adopts an amendment to sec.93.23, concerning administrative procedures associated with hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1307). The amendment provides for placing witness under The Rule. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442583 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.93.24 The Texas Credit Union Commission adopts an amendment to sec.93.24, concerning administrative procedures associated with hearings withouth changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1308). The amendment provides for prefiling of prepared direct testimony in narrative or question-and-answer form, cross-examination of the witness, and subjects the prepared testimony to be stricken in part or whole. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442584 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.sec.93.25-93.28 The Texas Credit Union Department adopts the repeal of sec.sec.93.25, 93.26, 93.27 and 93.28, concerning procedures related to hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1308). These rules are repealed because all hearings will be conducted by the State Office of Administrative Hearings. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442585 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Contested Cases 7 TAC sec.sec.93.41-93.64 The Texas Credit Union Department adopts the repeal of sec.sec.93.41-93.64, concerning procedures related to hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1309). These rules are repealed because all hearings will be conducted by the State Office of Administrative Hearings. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442586 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Rulemaking Procedures 7 TAC sec.sec.93.81-93.83 The Texas Credit Union Department adopts the repeal of sec.sec.93.81, 93.82, and 93.83, concerning procedures related to hearings, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1309). These rules are repealed because all hearings will be conducted by the State Office of Administrative Hearings. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442587 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 The Commission 7 TAC sec.sec.93.91-93.97 The Texas Credit Union Department adopts the repeal of sec.sec.93.91-93.97, concerning procedures related to hearings, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1309). These rules are repealed because all hearings will be conducted by the State Office of Administrative Hearings. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442588 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 The Commissioner 7 TAC sec.sec.93.221-93.224 The Texas Credit Union Department adopts the repeal of sec.sec.93.221-93.224, concerning procedures related to hearings, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1310). These rules are repealed because all hearings will be conducted by the State Office of Administrative Hearings. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442589 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Chapter 95. Texas Share Guaranty Credit Union General 7 TAC sec.sec.95.1, 95.3, 95.5 The Texas Credit Union Commission adopts the repeal of sec.sec.95.1, 95.3, and 95.5, concerning the operation of Texas Share Guaranty Credit Union, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1310). These rules are repealed because Texas Share Guaranty Credit Union is currently in liquidation and there is no continuing need for the rules. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442590 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Powers 7 TAC sec.95.102, sec.95.103 The Texas Credit Union Commission adopts the repeal of sec.95.102 and sec.95.103, concerning the powers of Texas Share Guaranty Credit Union, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1310). These rules are repealed because Texas Share Guaranty Credit Union is currently in liquidation and there is no continuing need for the rules. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442593 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Direction of Affairs 7 TAC sec.sec.95.201-95.204 The Texas Credit Union Commission adopts the repeal of sec.sec.95.201-95.204, concerning the direction of affairs of Texas Share Guaranty Credit Union, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1311). These rules are repealed because Texas Share Guaranty Credit Union is currently in liquidation and there is no continuing need for the rules. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442594 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Finance and Accounts 7 TAC sec.sec.95.301-95.303, 95.305, 95.310-95.313 The Texas Credit Union Commission adopts the repeal of sec.sec.95.301-95.303, 95.305, and 95.310-95.313, concerning the finance and accounts of Texas Share Guaranty Credit Union, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1311). These rules are repealed because Texas Share Guaranty Credit Union is currently in liquidation and there is no continuing need for the rules. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442595 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Dissolution of TSGCU 7 TAC sec.95.401 The Texas Credit Union Commission adopts the repeal of sec.95.401, concerning the dissolution of Texas Share Guaranty Credit Union, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1311). This rule is repealed because Texas Share Guaranty Credit Union is currently in liquidation and there is no continuing need for the rule. There were no comments received regarding adoption of the repeals. The repeal is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442597 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Supervision and Examination 7 TAC sec.sec.95.501-95.508 The Texas Credit Union Commission adopts the repeal of sec.sec.95.501-5.508, concerning the supervision and examination of member credit unions by Texas Share Guaranty Credit Union, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1312). These rules are repealed because Texas Share Guaranty Credit Union is currently in liquidation and there is no continuing need for the rules. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442598 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Chapter 97. Commission Policies and Administrative Rules General Provisions 7 TAC sec.97.101 The Texas Credit Union Commission adopts an amendment to sec.97.101, concerning meetings of the commission, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1312). The amendment provides for the commission chairman to schedule commission meetings and that the minutes will be in writing. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442599 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.97.102, sec.97.106 The Texas Credit Union Commission adopts the repeal of sec.97.102 and sec.97.106, concerning hearings and compensation, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1312). These rules are repealed because they are obsolete. There were no comments received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442600 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 Fees 7 TAC sec.97.110 The Texas Credit Union Commission adopts the repeal of sec.97.110, concerning fees, without changes to the proposed text as published in the February 22, 1994, issue of the Texas Register (19 TexReg 1313). This rule is repealed and replaced by proposed new sec.97.114. There were no comments received regarding adoption of the repeal. The repeal is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442601 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 7 TAC sec.97.113 The Texas Credit Union Commission adopts an amendment to sec.97.113, concerning operating fees, without changes to the proposed text as published in February 22, 1994, issue of the Texas Register (19 TexReg 1313). The amendment establishes an annual operating fee of $200 for each foreign state credit union branch office located in Texas. There were no comments received regarding adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for the administration of the Texas Credit Union 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 June 17, 1994. TRD-9442602 Robert W. Rogers Commissioner Texas Credit Union Commission Effective date: July 8, 1994 Proposal publication date: February 22, 1994 For further information, please call: (512) 837-9236 TITLE 22. EXAMINING BOARDS Part III. Texas Board of Chiropractic Examiners Chapter 71. Application and Applicants 22 TAC sec.sec.71.1-71.10, 71.12 The Texas Board of Chiropractic Examiners adopts the repeal sec.sec.71.1-71. 10 and 71.12 and simultaneously adopts new sec.sec.71.1-71.3 and sec.sec.71.5- 71.12, concerning definition and the licensure process, without changes to the proposed text in the April 12, 1994, issue of the Texas Register (19 TexReg 2588). The Texas Board of Chiropractic Examiners is repealing all of Chapter 71 and replacing it with new Chapter 71. The new sections contain definitions of terms used elsewhere in the rules or terms used in the Chiropractic Act, Texas Civil Statutes, Article 4512(b). The new sections will provide useful information to applicants about the examination and licensure process, including qualification to sit for the examination, scope of the examination and grade requirements. The following is a summary of the comments received and the Board's response. Comments on sec.71.1: Definitions. The Texas Medical Association, Texas Physical Therapy Association, Texas Osteopathic Medical Association, Executive Council of Physical Therapists and Occupational Therapists, and the International Chiropractic Association, as well as several individuals provided comments on this section. The comments were: The definitions of "Biomechanical conditions of the musculoskeletal system", "surgery", and "subluxation and its direct or indirect relation...to other body systems" exceed the statutory authority of the Texas Board of Chiropractic Examiners. The word "indirect" circumvents legislative intent. Response: After consideration of these various comments, the Texas Board of Chiropractic Examiners disagrees with the comments. These definitions neither expand nor diminish the actions in which the licensees of this Board may engage. Several of the terms referred to in the comments are used in the Chiropractic Act, Texas Civil Statutes, Article 4512b without statutory definition. The definitions of this section are reasonably necessary for the regulation of the practice of Chiropractic as authorized by Texas Civil Statutes, Article 4512b, sec.4a. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of five to zero with one abstaining of the six members present and participating. The Texas Board of Chiropractic Examiners promulgated and published this rule based on its statutory authority established in Texas Civil Statutes, Article 4512b, sec.sec.4a, 10,1(1), 3, 4, 8,1, 4(c)(1), and 13a. Comments on sec.71.3: Qualifications of Applicants. The Texas Physical Therapy Association and the International Chiropractic Association as well as several individuals made the following comments on this section: The Physical Therapy Act restricts the use of the term "Physical Therapy" to the licensees of the Texas Board of Physical Therapy Examiners. Response: After consideration of all comments made, the Texas Board of Chiropractic Examiners concluded that the offending term was a title of a portion of an examination established by an entity over which this Board has no jurisdiction. The reference to the term "physical therapy" in this rule is not an authorization for chiropractors to hold themselves out to the public as practicing physical therapy. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. The Texas Board of Chiropractic Examiners promulgated and published this rule based on its statutory authority established in Texas Civil Statutes, Article 4512b, sec.4a and sec.10. Comments on sec.71.5: Approved Chiropractic Schools and Colleges. The International Chiropractic Association and an individual commented that the Chiropractic Act does not authorize the Texas Board of Chiropractic Examiners to regulate Chiropractic Colleges. Response: The Texas Board of Chiropractic Examiners, after consideration of comments, found that this rule does not purport to regulate chiropractic colleges. Texas Civil Statutes, Article 4512b, sec.10, uses the term "bona fide reputable chiropractic schools" without definition. The rule as adopted gives meaning to the term and provides assurance that only graduates of chiropractic schools meeting minimum requirements will be eligible to sit for the Texas examination. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. The Texas Board of Chiropractic Examiners promulgated and published this rule based on its statutory authority established in Texas Civil Statutes, Article 4512b, sec.4a and sec.10. Comments on sec.71.6: Time, Place, and Scope of Examination. An individual commented that the rule conflicts with the Chiropractic Act, sec.12. Responses: The Texas Board of Chiropractic Examiners, after consideration, found that the Chiropractic Act, sec.12, establishes the basis for promulgation of this rule. Adequate guidelines for establishing the time, place and scope of the examination allow for each applicant to be notified via rule of the administration and disposition of the examination. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. The Texas Board of Chiropractic Examiners promulgated and published this rule based on its statutory authority established in Texas Civil Statutes, Article 4512b, sec.4a and sec.12. Comments on sec.71.12: National Board Examination. The Texas Physical Therapy Association, International Chiropractic Association, and Executive Council of Physical Therapists and Occupational Therapists, as well as several individuals made the following comments: the Physical Therapy Act, Texas Civil Statutes, Article 4512e, precludes the use of the term Physical Therapy or its derivative by anyone not licensed by the Texas Board of Physical Therapy Examiners. Response: After consideration of all comments made, the Texas Board of Chiropractic Examiners concluded that the offending term was a title of a portion of an examination established by an entity over which this Board has no jurisdiction. The reference to the term "physical therapy" in this rule is not an authorization for chiropractors to hold themselves out to the public as practicing physical therapy. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. No comments were received on sec.sec.71.2, 71.7-71.11. The Texas Board of Chiropractic Examiners promulgated and published these rules based on its statutory authority established in the Chiropractic Act, Texas Civil Statutes, Article 4512(b), sec. sec.4a, 5a(a) and 10. The repeals are adopted under Texas Civil Statutes, Article 4512b, sec.4 and sec.4(c), which provide the Texas Board of Chiropractic Examiners with the authority to promulgate and publish rules. 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 May 27, 1994. TRD-9442705 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 22 TAC sec.sec.71.1-71.3, 71.5-71.12 The new sections are adopted under Texas Civil Statutes, Article 4512b, sec.4 and sec.4(c), which provide the Texas Board of Chiropractic Examiners with the authority to promulgate and publish rules. 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 May 27, 1994. TRD-9442704 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Chapter 73. Licenses and Renewals 22 TAC sec.sec.73.1-73.4, 73.6 The Texas Board of Chiropractic Examiners adopts the repeal sec.sec.73.1-73.4 and 73.6 and simultaneously adopts new sec.sec.73.1-73.5, concerning licenses and renewals, without changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2590). The new sections are adopted to more completely define the processes, procedures, and requirements affecting licensure, renewal and continuing education. The repeal of the old rules and adoption of the new rules will further unify the operations of the Board. The ultimate effect of the new rules is to increase accessibility by the public to the administrative process, and to efficiently and expeditiously process applications and petitions in a manner consistent with the requirements of the process. The following is a summary of the comments received and the Board's response. Comments on sec.73.2: Renewal of License. An individual commented, regarding Student Loan repayment, sec.73.2(a)(1)(b): The Board should not be in the position of monitoring the financial status of a licensee. Response: The Texas Board of Chiropractic Examiners found that after consideration of the comment that in establishing the Texas Guaranteed Student Loan Corporation, the Legislature set forth that no license may be renewed, except under specific provisions, by any licensing agency of the state. This Board did no establish the provision but is required by law to uphold it. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. Comments on sec.73.3: Continuing Education. The Texas Physical Therapy Association and the Texas Medical Association, as well as several individuals commented that: the Board cannot delegate the authority to set Continuing Education course as required by rule to the Education Committee of the Board. Continuing Education should enhance a Chiropractor's abilities. Guidelines and subjects which are acceptable should be more rigid. Response: The Chiropractic Act, sec.4a, provides for the establishment of Committees and "the making of rules and regulations not inconsistent with this law as may be necessary for the performance of its duties." Comment: The Texas Medical Association and the Texas Physical Therapy Association commented that the rule requires a state agency to participate in and provide a benefit to private industry which is illegal. Response: The rule provides for specific continuing education topics which will be set by and presented by a Board representative. The topics will provide the licensees with direct information regarding rules and statutes as well as giving the licensees access to the Board members or the Board's designee, thus opening avenues of communication. After consideration of the written comments (submitted to the Board on May 23, 1994 vi Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. No comments were received on sec.sec.73.1, 73.4, and 73.5. The Texas Board of Chiropractic Examiners promulgated and published these rules based on its statutory authority established in the Chiropractic Act, Texas Civil Statutes, Article 4512(b), sec. sec.4a, 4(c), and 8d. The repeals are adopted under Texas Civil Statutes, Article 4521b, sec.sec.4a and 8a-8d, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate and publish rules. 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 May 27, 1994. TRD-9442707 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 22 TAC sec.sec.73.1-73.5 The new sections are adopted under Texas Civil Statutes, Article 4521b, sec.sec.4a and 8a-8d, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate and publish rules. 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 May 27, 1994. TRD-9442706 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Chapter 74. Chiropractic Facilities 22 TAC sec.74.1 The Texas Board of Chiropractic Examiners adopts new sec.74.1, without changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2592). The new rule establishes the procedure as well as the jurisdiction for registration of chiropractic facilities. The following comments were received during the comment period held before adoption of the proposed rules: Comment on sec.74.1: Chiropractic Facilities. An individual asked: Who is affected by this rule? Response: The owners of chiropractic facilities in the State of Texas. Comment: An individual commented that rules regulating facilities may be used to force doctors of chiropractic to have specific equipment. Response: The Board disagrees with this comment. In adding this requirement to the statute, the intent of the legislature does not appear to be granting the authority to this or any other board the right to designate specific equipment which must be in each facility. The statute does, however, appear to be designed to give this Board the jurisdiction to apply the Chiropractic Act's requirements to owners of facilities. Comment: An individual commented that this rule may be used as an enforcement tool. Response: This Board is established to protect the public. This protection would be provided no matter whether it is an issue with a licensee or a facility. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. The Texas Board of Chiropractic Examiners promulgated and published this rule based on its statutory authority established in Texas Civil Statutes, Article 4512b, sec.4a and sec.12a. The new section is adopted under the provisions of Texas Civil Statutes, Article 4512b, sec.4a which provide the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules for the regulation of chiropractic and the enforcement of the Chiropractic 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 May 27, 1994. TRD-9442708 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Chapter 75. Rules of Practice The Texas Board of Chiropractic Examiners adopts the repeal of sec.sec.75. 1- 75.6 and adopts new sec.sec.75.1-75.10. Section 75.3 and sec.75.4 are adopted with changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2593). Sections 75.1, 75.2, and 75.5-75. 10 are adopted without changes and will not be republished. The new sections are adopted to define authorized instruments, diagnostic techniques and adjunctive therapy, to establish authorized fees, to provide for the processing of complaints and to describe the disciplinary process, including the assessment of administrative penalties. Several changes have been made in the rules from the version proposed. The new language in sec.75.3 (Diagnostic Techniques) and sec.75.4 (Adjunctive Therapy) do not substantiatively change the rules as proposed but more accurately reflect the legislative intent as understood by the Board. The following is a summary of the comments received and the Board's response. Comments on sec.75.1: Grossly Unprofessional Conduct. The Texas Physical Therapy Association, the Texas Osteopathic Medical Association, the Texas Medical Association and an individual made the following comments: sec.75.1(7) is in direct violation of the provisions contained in the Health Professions Act, Article 4512p, sec.4. The Board is proposing to continue a marketing practice prohibited by law. Response: After consideration of the written and oral comments presented, the decision of the Board was to pass the rule as written based on the fact that numerous insurance companies forms provide for waiver of co-payment or deductible which necessitates guidelines to be used by the profession. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its opening meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. The Texas Board of Chiropractic Examiners promulgated and published these rules based on its statutory authority established in Texas Civil Statutes, Article 4512b, sec.sec.4a, 14, and 14a. Comments on sec.75.2: Authorized Instruments. The Texas Medical Association and the Texas Physical Therapy Association, as well as an individual made the following comments: Rule is an attempt to circumvent the Chiropractic Act, sec.4(c). It is an expansion of the meaning of the practice of Chiropractic. Response: The rule is written to be more explicit and to directly refer the licensee to the statute when authorized instruments are in question. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. Comments on sec.75.3: Diagnostic Techniques. The rule does not specifically and directly relate to a subluxation of the spine or a musculoskeletal condition that directly relates to the spine. Rule exceeds the rulemaking authority of the Board. Response: After consideration of oral and written comments, the Board amended the rule as proposed to reflect techniques as defined by statute. The amended rule is consistent with acts constituting the practice of chiropractic describes in the Chiropractic Act, Texas Civil Statutes, Article 4512(b), sec.1. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve as amended with a vote of six to zero with six members present and participating. Comments on sec.75.4: Adjunctive Therapy. The Texas Physical Therapy Association, the Texas Medical Association, the Certified Orthotic and Prosthetic Advocates in Texas made the following comments: Definitions should be limited to the practice of chiropractic involving the spine. The rule is beyond the authority of the Board. Response: The rule was amended in response to these comments and advise of counsel. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve as amended with a vote of six to zero with six members present and participating. No comments were received on sec.sec.75.5-75.10. 22 TAC sec.sec.75.1-75.6 The repeals are adopted under the provisions of the Chiropractic Act, Texas Civil Statutes, Article 4512b, sec.4a, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules. 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 May 27, 1994. TRD-9442710 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 22 TAC sec.sec.75.1-75.10 The new sections are adopted under the provisions of the Chiropractic Act, Texas Civil Statutes, Article 4512b, sec.4a, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules. sec.75.3. Diagnostic Techniques. Diagnostic techniques that are approved by the Texas Board of Chiropractic Examiners and are within the scope of practice as defined by Texas Civil Statutes, Article 4512(b), sec.1, are authorized where necessary to make proper diagnosis. sec.75.4. Adjunctive Therapy. The use of adjunctive therapy modalities and procedures are authorized for treatment of spinal and spine-related conditions as authorized in Texas Civil Statutes, Article 4512(b) , sec.1. 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 May 27, 1994. TRD-9442709 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Chapter 77. Advertising and Public Communication The Texas Board of Chiropractic Examiners adopts the repeal of sec.sec.77.1, 77.2, and 77.5 and new sec.sec.77.1, 77.2, and 77.3, without changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2599). The new rules will more clearly define the role and responsibility of the licensee as well as increase the certainty, uniformity, and clarity of the administrative process at the Texas Board of Chiropractic Examiners. No comments were received on sec.sec.77.1-77.3. 22 TAC sec.sec.77.1, 77.2, 77.5 The repeals are adopted under Texas Civil Statutes, Article 4512(b), sec.4a, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate and publish rules. 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 May 27, 1994. TRD-9442712 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 22 TAC sec.sec.77.1-77.3 The new sections are adopted under Texas Civil Statutes, Article 4512(b), sec.4a, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate and publish rules. 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 May 27, 1994. TRD-9442711 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Chapter 78. Chiropractic Radiologic Technologists The Texas Board of Chiropractic Examiners adopts the repeal of sec.78.1 and new sec.78.1. New sec.78.1 is adopted with changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2600). The new rule clearly defines the registration procedure and establishes minimum continuing education for chiropractic radiologic technologists. The following comments were received during the comment period held before adoption of the proposed rules: Comments on sec.78.1: Registration of Chiropractic Radiologic Technologists. The Texas Physical Therapy Association and the Texas Department of Health made the following comments: The rule requires minimal training and supervision. The rule is not specific about other X-ray procedures the radiologic technologist will be asked to perform. The Board does not have authority to set continuing education for radiologic technologists. Response: The Texas Board of Chiropractic Examiners through statute is appointed to protect the public. In adopting this rule the Board sets forth criteria which will create further protection against untrained or uncertified individuals. After consideration of the written comments (submitted to the board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve as amended with a vote of six to zero with six members present and participating. The Texas Board of Chiropractic Examiners promulgated and published this rule based on its statutory authority established in Texas Civil Statutes, Article 4512b, sec.sec.4a, 6, and 14b. 22 TAC sec.78.1 The repeal is adopted under the provisions of the Chiropractic Act, Texas Civil Statutes, Article 4512b, sec.4a, which provides the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules. 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 May 27, 1994. TRD-9442715 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 The new section is adopted under the provisions of the Chiropractic Act, Texas Civil Statutes, Article 4512b, sec.4a, which provides the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules. sec.78.1. Registration of Chiropractic Radiologic Technologists. (a) Any person performing radiologic procedures under the supervision of a chiropractor must register with the Texas Board of Chiropractic Examiners. This section does not apply to registered nurses or to persons certified under the Medical Radiologic Technologists Certification Act. (b) The fee for registration required under this section shall be set and approved annually by the board, and, payable to the Texas Board of Chiropractic Examiners by cashier's check or money order upon submission of the registration application. (c) Registration may be suspended, revoked, not renewed, or denied for the following: (1) violation of the rules of the Texas Board of Chiropractic Examiners; (2) violation of the Medical Radiologic Technologist Certification Act; (3) violation of the rules of the Texas Department of Health; (4) violation of the Texas Chiropractic Act; (5) violation of the rules of the registrant's licensing agency; and (6) nonpayment of registration fees. (d) Each chiropractic radiologic technologist shall renew the registration annually. The technologist shall complete 12 clock hours of continuing education prior to the expiration of the initial registration and six clock hours annually prior to the expiration of each subsequent registration. The continuing education shall meet the requirements of the rules of the Texas Department of Health relating to continuing education for medical radiologic technologists. (e) All registrants must comply with the rules of the Texas Department of Health for the Control of Radiation. (f) All registrants who perform radiologic procedures must meet the minimum training and supervision standards promulgated by the Texas Department of Health, 25 TAC sec.sec.143.1-143.14, unless they perform said procedures under the supervision issued by a licensed chiropractor. (g) Procedures that include cineradiography are limited to use by a doctor who has passed a course in its use, approved by the Texas Board of Chiropractic Examiners. (h) Any nonstatic procedure has the potential to be more dangerous and hazardous and by definition may only be performed by a practitioner or a certified medical radiologic technologist. 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 May 27, 1994. TRD-9442713 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Chapter 79. Reciprocity 22 TAC sec.sec.79.1-79.4 The Texas Board of Chiropractic Examiners adopts the repeal of sec.sec.79. 1- 79.4 and new sec.79.1 and sec.79.2, without changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2601). The new rule clearly defines the processes and procedures required for persons seeking provisional licensure through the Board and increases the certainty, uniformity and clarity of the administrative process. The repeal of the old rules and adoption of the new rules will further unify the operations of the Board. The ultimate effect of the new rules is to increase accessibility by the public to the administrative process. The following comments were received during the comment period held before adoption of the proposed rules: Comments on sec.79.2: Specific Requirements of Applicants. The Texas Physical Therapy Association and the Executive Council of Physical Therapists and Occupational Therapists made the following comment: The Physical Therapy Act restricts the use of the term physical therapy or physiotherapy to the licensees of the Texas Board of Physical Therapy Examiners. Response: After consideration of all comments made, the Texas Board of Chiropractic Examiners concluded that the offending term was a title of a portion of an examination established by an entity over which this Board has no jurisdiction. The reference to the term "physical therapy" in this rule is no an authorization for chiropractors to hold themselves out to the public as practicing physical therapy. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held on May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. No comments were received on sec.79.1. The Texas Board of Chiropractic Examiners promulgated and published these rules based on its statutory authority established in Texas Civil Statutes, Article 4512b, sec.4a and sec.9. The repeals are adopted under the provisions of Texas Civil Statutes, Article 4512b, sec.4a, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules; and the Administrative Procedure Act (Chapter 2001, the Government Code) which requires agencies to adopt rules of practice. 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 May 27, 1994. TRD-9442717 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Chapter 79. Provisional Licensure 22 TAC sec.79.1, sec.79.2 The new sections are adopted under the provisions of Texas Civil Statutes, Article 4512b, sec.4a, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules; and the Administrative Procedure Act (Chapter 2001, the Government Code) which requires agencies to adopt rules of practice. Issued in Austin, Texas, on May 27, 1994. TRD-9442716 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Chapter 80. Practice of Chiropractic The Texas Board of Chiropractic Examiners adopts the repeal of sec.sec.80. 1- 80.3 and new sec.80.2, without changes to the proposed text and withdraws sec.80.3 as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2602). The new rule defines authorized titles by which chiropractors may hold themselves out to the public. The following comments were received during the comment period held before the adoption of the proposed rules: Comments on sec.80.2: Titles. The Texas Osteopathic Medical Association, the Texas Medical Association, and individual made the comment that; This rule is in conflict with Article 4590e "The Healing Arts Act." The term "chiropractic physician" is false, misleading and deceptive. Response: The Board disagrees with these comments. The rule directly defines the titles which may be used by a chiropractor. The term chiropractic physician is deemed as appropriate based on Attorney General Opinion Number 1279. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to approve with a vote of six to zero with six members present and participating. The Texas Board of Chiropractic Examiners promulgated and published these rules based on its statutory authority established in the Chiropractic Act, Texas Civil Statutes, Article 4512b, sec.4a. Comments on sec.80.3: Specializations. The Texas Medical Association made the following comment: Should the Board attempt to establish a professional name or title through its registry that is reserved to or used by another profession it would be in violation of the Health Professions Act. Response: The Board voted to withdraw the rule. After consideration of the written comments (submitted to the Board on May 23, 1994 via Airborne overnight delivery), the verbal comments made at a public hearing held May 19, 1994 (verbatim transcription submitted to the Board via Airborne overnight delivery on May 23, 1994), and Board discussion held at its open meeting on May 27, 1994, the Texas Board of Chiropractic Examiners voted to disapprove with a vote of zero to six with six members present and participating. 22 TAC sec.sec.80.1-80.3 The repeals are adopted under the provisions of the Chiropractic Act, Texas Civil Statutes, Article 4512b, sec.4a, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules. 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 May 27, 1994. TRD-9442718 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 22 TAC sec.80.2 The new section is adopted under the provisions of the Chiropractic Act, Texas Civil Statutes, Article 4512b, sec.4a, which provide the Texas Board of Chiropractic Examiners with the authority to promulgate procedural and substantive rules. 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 May 27, 1994. TRD-9442719 Patte B. Kent Executive Director Texas Board of Chiropractic Examiners Effective date: July 11, 1994 Proposal publication date: April 12, 1994 For further information, please call: (512) 305-6700 Part XXIV. Texas Board of Veterinary Medical Examiners Chapter 571. Licensing Examinations 22 TAC sec.571.18 The Texas Board of Veterinary Medical Examiners adopts an amendment to sec.571.18, concerning Provisional Licensure, without changes to the proposed text as published in the March 4, 1994, issue of the Texas Register (19 TexReg 1534). The amendment will make candidates failing the State Board Examination ineligible for a provisional license. The rule provides a means by which an individual may be licensed until sitting for the next regularly scheduled examinations for licensure. The basic intent of the statutory authority for this rule is to allow a licensing mechanism for persons licensed in another state to become provisionally licensed in Texas until the next available scheduled full State Board Examination. The Provisional License avoids such applicants from waiting as much as eight months to be candidates for examination. However, the Board has found the Provisional License has become a mechanism for persons failing the State Board Examination to practice until the next scheduled examination, which is not the purpose of the Provisional License. The Board did not receive any comments concerning amendment to this rule. 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 June 14, 1994. TRD-9442664 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Effective date: July 8, 1994 Proposal publication date: March 4, 1994 For further information, please call: (512) 447-1183 Chapter 573. Rules of Professional Conduct Supervision of Personnel 22 TAC sec.573.10 The Texas Board of Veterinary Medical Examiners adopts an amendment to sec.573.10, concerning Direct Supervision of Lay Personnel, without changes to the proposed text as published in the March 4, 1994, issue of the Texas Register (19 TexReg 1534). The amendment brings the rule into compliance with the definitions contained in the Veterinary Licensing Act for direct and general supervision, and removes the directive that Rabies Certificates be personally signed by the veterinarians in accordance with the Rabies Control Act. The Board did not receive any comments concerning amendment to this rule. 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 June 14, 1994. TRD-9442661 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Effective date: July 8, 1994 Proposal publication date: March 4, 1994 For further information, please call: (512) 447-1183 Responsibilities to Clients 22 TAC sec.573.29 The Texas Board of Veterinary Medical Examiners adopts new sec.573.29, concerning Complaint Information with changes to the proposed text as published in the May 6, 1994, issue of the Texas Register (19 TexReg 3416). The changes remove redundant language, correct the Board's mailing address, and clarifies that the forms of adequate notification is not intended to be a list from which the practitioner must choose, but rather only examples. This new rule requires that licensees provide an effective way to inform clients as to how a complaint may be filed against a licensee, including the Board's address and telephone number. The Board did not receive any comments concerning this rule. The new section is adopted under Texas Civil Statutes, Article 8890, sec.18(b), which states: "The Board by rule shall establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the Board for the purpose of directing complaints to the Board." sec.573.29. Complaint Information. (a) A licensee shall provide an effective way to inform his/her consumers and recipients of services about how to file complaints with the Board about his/her services. The notification must contain: (1) the following specific address: Texas State Board of Veterinary Medical Examiners, 1946 South IH 35, Suite 306, Austin, Texas 78704; (2) the Board's telephone numbers: (512) 447-1183, fax (512) 442-3443. (b) Some examples of acceptable forms of notification are: a notice form, with print size of at least 14-point, prominently displayed in each business location in the area that is most frequented by the public; and/or, a statement on each written bill, invoice, or receipt. (c) Failure to have an effective means for providing the information required in this section, or failing to provide the information to a member of the public, is a violation of this rule and the 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 June 14, 1994. TRD-9442663 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Effective date: July 8, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 447-1183 Other Provisions 22 TAC sec.573.64 The Texas Board of Veterinary Medical Examiners adopts an amendment to sec.573.64, concerning Continuing Education Requirements, without changes to the proposed text as published in the May 6, 1994, issue of the Texas Register (19 TexReg 3416). The amendment provides an exemption for retired licensees, veterinary interns or residents, and out-of-country licensees on charitable or special government assignments during the last nine months of the preceding year. The rule is adopted to relieve the 15-hour continuing education requirement for annual license renewal from persons who will either not be practicing on animals or their current activities are advanced training in veterinary medicine. Further, out-of-country licensees often find access to continuing education programs difficult. The rule is also amended to simplify the time period in which continuing education requirements must be met for license renewal. The rule also provides for disciplinary action for noncompliance. The Board did not receive any comments concerning amendment to this rule. 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 June 14, 1994. TRD-9442659 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Effective date: July 8, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 447-1183 22 TAC sec.573.70 The Texas Board of Veterinary Medical Examiners adopts new sec.573.70, concerning Operation of Temporary Limited-Service Veterinary Services, without changes to the proposed text as published in the May 6, 1994, issue of the Texas Register (19 TexReg 3417). This new rule establishes conditions under which temporary limited-service veterinary activities at a mercantile establishment may be provided. The rule also ensures that consumers are provided with adequate and safe services and that consumers and health officials will have information as to where records created during the clinic will be maintained following conclusion of the clinic. The Board did not receive any comments concerning this new rule. The new section 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 June 14, 1994. TRD-9442662 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Effective date: July 8, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 447-1183 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part II. Texas Parks and Wildlife Department Chapter 53. Finance License Fees and Boat and Motor Fees 31 TAC sec.53.8 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing held May 19, 1994, adopted 31 TAC sec.53.8, concerning License Fees and Motor Boat Fees, with no changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2665). Increases in the fees are necessary to continue current levels of service directed to the public good and to adjust temporary license fees for consistency with other fixed-period license fees. The rule will function by regulating license fees. There were no public comments regarding adoption of the rule. The amendment is adopted under the authority of the Texas Parks and Wildlife Code, which provides the Texas Parks and Wildlife Commission with the authority to set certain license fees. Section 11.027, Parks and Wildlife Code, directs the Commission to establish reasonable and necessary fees for the administration of department programs. 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 June 17, 1994. TRD-9442059 Paul M. Shinkawa Acting General Counsel Texas Parks and Wildlife Department Effective date: September 1, 1994 Proposal publication date: April 12, 1994 For further information, please call: 1-800-792-1112, Ext. 4433 or (512) 389- 4433 Chapter 65. Wildlife Subchapter A. Statewide Hunting and Fishing Proclamation 31 TAC sec.sec.65.1, 65.3, 65.9, 65.13, 65.15, 65.21, 65.26, 65. 27, 65.31, 65.40, 65.46, 65.58, 65.62, 65.78, 65.91 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing held May 19, 1994 adopted the repeal of 31 TAC sec.sec.65.1, 65.3, 65.9, 65.13, 65.15, 65.21, 65.26, 65.27, 65.31, 65.40, 65.46, 65.58, 65.62, 65.78 and 65.91, concerning the Statewide Hunting and Fishing Proclamation. The repeal was adopted without changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2665). The repealed rules are being replaced with new rules necessary to appropriately manage wildlife and fisheries resources through the use of means, methods and manners, bag and possession limits, to clarify the rules for law enforcement purposes, and to protect the fisheries and wildlife resources from over-harvest. The rules are designed to prevent depletion or waste, to simplify regulations for law enforcement, to provide harvest opportunity of fisheries and wildlife resources consistent with acknowledged fisheries and wildlife tenets. There were no public comments regarding adoption of the repeals. The repeals are adopted under the Parks and Wildlife Code, Chapter 61, Uniform Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the Parks and Wildlife Commission with authority to establish wildlife resource regulations for this state 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 June 16, 1994. TRD-9442640 Paul M. Shinkawa Acting General Counsel Texas Parks and Wildlife Department Effective date: September 1, 1994 Proposal publication date: April 12, 1994 For further information, please call: 1-800-792-1112, Ext. 4433 or (512) 389- 4433 31 TAC sec.sec.65.1, 65.3, 65.9, 65.13, 65.21, 65.26-65. 28, 65.31, 65.32, 65.40, 65.46, 65.58, 65.62, 65.72, 65.78, 65.91 The Texas Parks and Wildlife Commission, in a regularly scheduled public hearing held May 19, 1994, adopted amendments to 31 TAC sec.sec.65.1, 65.3, 65.9, 65.13, 65.21, 65.26-65.28, 65.31, 65.32, 65.40, 65.46, 65.58, 65.62, 65.72, 65. 78, and 65.91, concerning the Statewide Hunting and Fishing Proclamation. Sections 65.3 and 65.32 were adopted with changes to the proposed text as published in the April 12, 1994, issue of the Texas Register (19 TexReg 2666). Sections 65.1, 65.9, 65.13, 65.15, 65.21, 65.26-65.28, 65.31, 65.40, 65. 46, 65.58, 65.62, 65.72, 65.78, and 65.91 were adopted without changes and will not be republished. Changes to the proposed text are itemized as follows: In sec.65.3, the Commission added the statutory definition for migratory game birds to provide consistency with other statewide hunting and fishing proclamations. An error in the reservoir boundary definition for Cooper Lake (sec.65.3(B)) was corrected. The proposed definition which referred to F.M. Road 17 was in error and was corrected to properly refer to F.M. Road 71. In sec.65.32, the Commission added new language in subsection (b) which would set requirements for having deer presented at check stations with hide and head intact. The rules as adopted are necessary to appropriately manage wildlife and fisheries resources through the use of means, methods and manners, bag and possession limits, clarify the rules for law enforcement purposes, and protect the fisheries and wildlife resources from over-harvest. The rules are designed to prevent depletion or waste, to simplify regulations for law enforcement, to provide harvest opportunity of fisheries and wildlife resources consistent with acknowledged fisheries and wildlife tenets. Public comments were received from 2,012 persons who attended 74 county public hearings conducted between February 22 and April 19, 1994. Notice of public hearings was published in local newspapers in each county and news releases were sent to 161 newspapers statewide. Additionally, the public made comments by letter and telephone. Wildlife issues addressed included proposals to change opening date for the spring turkey season in several counties, addition of a white-tailed deer muzzleloader season, new Managed Lands Buck Permits and Spike- Buck Control Permits, and an either-sex option for taking of white-tailed deer in the archery-only season. Comments received concerning fisheries proposals were minimal, although comments were received concerning inclusion of Lake Granbury in those reservoirs where take of largemouth bass is restricted to a three-fish daily bag and 18- inch minimum length; proposals to limit the number of crab traps used by a commercial fisherman to 200; support for a 14- to 24-inch slot limit at Fayette County Lake and comments concerning proposed red drum and tarpon tags. All comments received during public hearings, by correspondence or telephone, or during the Commission's public hearing are available for public inspection at the Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas, 78744. Those speaking in favor of the proposed rules include: One individual (each) spoke in favor of a one buck limit in Bell County and Burnet County. Thirteen individuals spoke in favor of proposals for Managed Lands Buck Permits. Twenty-six individuals spoke in favor of Spike-buck Control Permits. Thirty-three individuals spoke in favor of a special muzzleloader season. One hundred thirty-four individuals spoke in favor of either-sex take of white- tailed deer during archery-only season. Lone Star Bowhunters Association spoke in favor or either-sex take of white- tailed deer during archery-only season. Eight individuals spoke in favor of archery season regulations which were consistent with gun season regulations. One hundred thirty-six individuals supported the longer season and increased bag limit for pheasants in the Texas panhandle. The Floyd County and Texas Pioneer Chapters of Pheasants Forever spoke in favor of the longer season and increased bag limit for pheasants in the Texas panhandle. Seventeen individuals spoke in favor of delaying the spring turkey season in the north zone from the first Saturday to the third Saturday in April. Seven individuals spoke in favor of increasing the turkey bag limit from one to two turkeys. Four individuals spoke in favor of closing six east Texas counties to spring turkey hunting. Two individuals spoke in favor of the proposed prohibition of baiting for eastern turkeys. Three individuals spoke in favor of limiting the number of commercial crab traps fished by a commercial fisherman to 200. Two individuals supported recommendations to set the number of crab traps fished by a recreational crab fisherman at three traps. Three individuals supported spacing proposals for crab traps. Six individuals supported proposals to prohibit the use of plastic bottles as floats on crab traps. Two individuals spoke in favor of increasing the minimum length limit for possession of red snapper to 14 inches. Twenty-two individuals spoke in favor of red drum and bonus red drum tags. Six individuals spoke in favor of tarpon tags. Four individuals spoke in favor of smallmouth bass proposals to increase the minimum length limit for possession. One individual spoke in favor of the proposal to increase the length limit for largemouth bass at Lake Granbury to 18 inch minimum and three fish daily bag. Those speaking in opposition to proposals include: Three individuals spoke in opposition to either-sex take of white-tailed deer during archery-only season and two individuals spoke in opposition to archery season regulations which were consistent with gun season regulations. Fifteen individuals spoke in opposition to a special muzzleloader season. Ten individuals spoke in opposition to a one-buck limit in Bell County and Burnet County. Seven individuals spoke in opposition to proposals for Managed Lands Buck Permits. Sixteen individuals spoke in opposition to Spike Buck Control Permits. Two hundred thirty-two individuals did not support the longer season and increased bag limit for pheasants in the Texas panhandle. The Olton Chamber of Commerce and Hart Lions Club did not support the longer season and increased bag limit for pheasants in the Texas panhandle. Seventy-seven individuals spoke in opposition to delaying the spring turkey season in the north zone from the first Saturday to the third Saturday in April. The Dallas Woods and Waters Conservation Club opposed proposals to increase the turkey bag limit and in opposition to the proposal to delay the spring turkey season. The Texas Wildlife Association opposed proposals to increase the turkey bag limit and in opposition to the proposal to delay the spring turkey season. Fifteen individuals spoke in opposition to increasing the turkey bag limit from one to two turkeys. Nine individuals spoke in opposition to closing six east Texas counties to spring turkey hunting. Temple-Inland and Champion International both opposed closure of six east Texas counties to spring turkey hunting. Two individuals spoke in opposition to the proposed prohibition of baiting for eastern turkeys. Nine individuals spoke in opposition to limiting the number of commercial crab traps fished by a commercial fisherman to 200. Six individuals spoke in opposition to recommendations to set the number of crab traps fished by a recreational crab fisherman at three traps. Three individuals spoke in opposition to increasing the minimum length limit for possession of red snapper to 14 inches. Eleven individuals spoke in opposition to red drum and bonus red drum tags. Fifteen individuals spoke in opposition to tarpon tags. Five individuals spoke in opposition to smallmouth bass proposals to increase the minimum length limit for possession. Fourteen individuals spoke in opposition to the proposal to increase the length limit for largemouth bass at Lake Granbury to 18 inch minimum and three-fish daily bag. Reasons why agency disagrees with public comment. Agency response to public comment are addressed in the same numerical order as listed in comments against the proposed rules; The agency disagrees with supporters of buck-only archery regulations because of the limited archery deer harvest and potential loss of hunting opportunity. Either-sex/no permit required regulations will not impact deer harvest. Uniform statewide archery regulations will be easier for the public to understand and will improve compliance. Elimination of antlerless permit requirements for archery deer reduces burdensome governmental regulation. The agency disagrees with opposition to the muzzleloader season. The region proposed for the season is characterized by high deer populations that often are in excess of carrying capacity. Landowners ultimately control deer hunting and harvest on property and may voluntarily choose to prohibit muzzleloader hunting on their property. The season provides additional hunting opportunity while benefiting the white-tailed deer resource. The agency disagrees with opposition to white-tailed deer one-buck bag limits. Bag limit is set at one-buck when hunting pressure removes a significant portion of the annual recruitment of bucks. Allowance for higher bag limits would negatively impact the deer population. However, agency agrees with opposition to the proposed change in white-tailed deer bag limit for Burnet County and withdraws the proposal for further study. The agency disagrees with opposition to managed-lands buck permits because the extra harvest will be controlled by the biological recommendations in the wildlife habitat and harvest recommendation. Additional harvest flexibility will motivate landowners to seek management assistance. The agency disagrees with opposition to the addition of spike-bucks to the antlerless deer control permit program. Buck harvest will be controlled by the biological recommendations in the wildlife management plan. The agency disagrees with opposition to increasing the bag limit from two pheasants-four in possession to three pheasants-six in possession. Pheasant harvest is not a significant factor in regulating pheasant numbers. Surplus pheasants are available. The agency agrees with input opposing an extension of the pheasant season and withdraws the proposal. The agency disagrees with opposition to increasing the bag limit from three to four Rio Grande turkeys. Turkey harvest is not a significant factor in regulating turkey numbers. Surplus turkeys are available. The agency disagrees with opposition to delaying the opening date of Spring Turkey season from the first Saturday in April to the third Saturday in April. Biological studies have shown that the delay may in the future benefit the population if hunting pressure continues to increase. Because the problem is not severe at this time, the agency agrees with input to delay the opening date of Spring Turkey season from the first Saturday in April to the second Saturday in April. The Commission agrees with input to add Goliad, Calhoun and Aransas counties to the South Texas zone. The agency disagrees with opposition to closing the spring season for eastern turkey. Counties where the season was held are still being stocked with turkey and closing the season may aid in restoration efforts. The agency disagrees with opposition to restrictions on baiting of eastern turkey. The counties affected by the baiting ban are currently being stocked by the department to increase numbers and baiting of turkeys increases harvest. Scoping of commercial crab fishermen indicates 64% currently fish 200 crab traps or less. Reducing the number of crab traps that individuals may use will reduce fishing pressure on the crab populations, will allow for better distribution of crabs among fishermen, will reduce user group conflicts in areas of high fishing density, and will reduce navigational hazards. The Texas Blue Crab Advisory Committee recommended that recreational crabbers be allowed to fish six traps. The agency agreed with this proposal. The 14-inch minimum size limit on red snapper corresponds to the regulation implemented by the Gulf of Mexico Fishery Management Council in federal waters where most of the red snapper fishery occurs. This would insure consistency in regulation enforcement and reduce confusion among fishermen. In addition, the biomass yield per recruit and spawning success of the over-fished red snapper stocks would be improved. Stocks of red drum have increased to that point at which a modest allowance for increased harvest is justified. A red drum tag will allow the development of a trophy fishery for this species. In addition the tag would increase the opportunity for harvest and reestablish an important component of the red drum fishery. Similar to the rationale for the red drum tag a tarpon tag will allow the development of a trophy fishery for this species. In addition the tag would increase the opportunity for harvest and reestablish an important component of the tarpon fishery while minimizing harvest. The agency disagreed with comments expressed against changing harvest regulations for smallmouth bass on seven reservoirs from a 14-inch minimum length limit and five-fish daily bag to a minimum length limit of 18 inches and three-fish daily bag as this regulation was designed to address problems associated with improving angling for smallmouth bass. The effectiveness of this regulation will be evaluated by a research study. Staff agreed with comments that changing harvest regulations for largemouth bass on Lake Granbury to a 16-inch minimum length limit and five-fish daily bag would provide some additional protection from harvest for bass as is desired by staff. The amendments are adopted under the Parks and Wildlife Code, Chapter 61, Uniform Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the Parks and Wildlife Commission with authority to establish wildlife resource regulations for this state. 12> sec.sec.65.3. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise: Agent-A person who is named in the application for antlerless permits or antlerless deer control permits by the landowner to act on behalf of the landowner for purposes of the wildlife management plan, LAMPS recommendation or wildlife habitat and harvest annual recommendation. Antlerless deer -A deer having no hardened antler protruding through the skin. Antlerless and Spike-Buck Deer Control Permit -Permits that when attached to an antlerless or spike-buck white- tailed deer legally harvested under a wildlife management plan (see sec.65.26(3) of this title (relating to Antlerless Deer Harvest Systems)) allows the carcass to be possessed without the hunting license white-tailed deer tag attached. Antlerless Deer Permit-A permit issued by the department under the provisions of a Wildlife Habitat and Harvest Annual Recommendation that allows the taking of one antlerless deer. Automatic firearm or fully-automatic firearm-Any firearm that is capable of firing more than one cartridge in succession by a single pull or function of the trigger. Bait-Something used to lure aquatic animal life. Baited area-Any area where shelled, shucked or unshucked corn, wheat, or other grain, salt, or other feed is distributed so as to constitute for eastern turkeys, a lure, attraction or enticement to, on, or over any area where hunters are taking or attempting to take eastern turkeys. Baiting for eastern turkey-the placing, exposing, depositing, distributing, or scattering, of shelled, shucked, or unshucked corn, wheat or other grain, salt, or other feed so as to constitute for eastern turkeys, a lure, attraction or enticement to, on, or over any areas where hunters are attempting to take eastern turkeys. Bearded hen-A female turkey possessing a clearly visible beard protruding through the feathers of the breast. Bow-A bow includes the longbow, recurved bow, or compound bow that is hand- held and hand-drawn, and that has no mechanical device built into, or attached to, that will enable the archer to lock the bow at full or partial draw. Other than energy stored by the hand-held, hand-drawn bow, no device to propel the arrow will be permitted. Buck deer-A deer having a hardened antler protruding through the skin. Cast net-A net which can be thrown or cast to drop over an area. Chartered vessel (saltwater)-A boat or vessel whose captain or operator is licensed by the U.S. Coast Guard to carry paying passengers and whose passengers fish for a fee. Chumming-To deposit into the water any fish, parts of fish, or other substances containing fish or fish parts that are not attached to a hook and line and used to attract fish or stimulate fish feeding activity. Coastal waters boundary-For purposes of Texas Parks and Wildlife Code, Chapters 61 and 66, all public waters east and south of the following boundary are considered coastal waters: Beginning at the International Toll Bridge in Brownsville, thence northward along U.S. Highway 77 to the junction of Paredes Lines Road (F.M. Road 1847) in Brownsville, thence northward along F.M. Road 1847 to the junction of F.M. Road 106 east of Rio Hondo, thence westward along F.M. Road 106 to the junction of F.M. Road 508 in Rio Hondo, thence northward along F.M. Road 508 to the junction of F.M. Road 1420, thence northward along F.M. Road 1420 to the junction of State Highway 186 east of Raymondville, thence westward along State Highway 186 to the junction of U.S. Highway 77 near Raymondville, thence northward along U.S. Highway 77 to the junction of F.M. Road 774 in Refugio, thence eastward along F.M. Road 774 to the junction of State Highway 35 south of Tivoli, thence northward along State Highway 35 to the junction of State Highway 185 between Bloomington and Seadrift, thence northwestward along State Highway 185 to the junction of F.M. Road 616 in Bloomington, thence northeastward along F.M. Road 616 to the junction of State Highway 35 east of Blessing, thence southward along State Highway 35 to the junction of F.M. Road 521 north of Palacios, thence northeastward along F.M. Road 521 to the junction of State Highway 36 south of Brazoria, thence northward along State Highway 36 to the junction of State Highway 332 in Brazoria, thence eastward along State Highway 332 to the junction of F.M. Road 2004 in Lake Jackson, thence northeastward along F.M. Road 2004 to the junction of Interstate Highway 45 between Dickinson and La Marque, thence northwestward along Interstate Highway 45 to the junction of Interstate Highway 610 in Houston, thence east and northward along Interstate Highway 610 to the junction of Interstate Highway 10 in Houston, thence eastward along Interstate Highway 10 to the junction of State Highway 73 in Winnie, thence eastward along State Highway 73 to the junction of U.S. Highway 287 in Port Arthur, thence northwestward along U.S. Highway 287 to the junction of Interstate Highway 10 in Beaumont, thence eastward along Interstate Highway 10 to the Louisiana State Line. The public waters: north of the dam on Lake Anahuac in Chambers County; north and west of the junction of the north and south forks of the Guadalupe River in Calhoun and Refugio Counties; the waters of Taylor Bayou and Big Hill Bayou inland from the saltwater locks on Taylor Bayou in Jefferson County; the Galveston County Reservoir on State Highway 146 in Galveston County; Lakeview City Park Lake in Corpus Christi; Lake Burke-Crenshaw in Pasadena; Galveston County Reservoir in Galveston County; Galveston State Park ponds Numbers 1-7 in Galveston County; Lake Nassau in Harris County: Fort Brown Resaca in Cameron County; Resaca de la Guerra in Cameron County; Resaca de la Palma in Cameron County; Resaca de los Cuates in Cameron County; Resaca de los Fresnos in Cameron County; Resaca Rancho Viejo in Cameron County; and Town Resaca in Cameron County, are not considered coastal waters for purposes of this proclamation. Crab line-A baited line with no hook or pole attached. Crab measurements -Blue crabs are measured of the body from tip of spine to tip of spine. Stone crab claws are measured by the propodus length which is that distance from the tip of the immovable claw finger to the first joint behind the claw. Daily bag limit -The quantity of a species of game that may be taken in one day (Texas Parks and Wildlife Code, sec.61.005(5)). Day-As used in daily bag limit is that period of time that begins at midnight and ends at midnight. Deer Management Plan-A written document provided to the landowner or agent and approved by a department biologist after an investigation is completed on a tract of land. Designated urban lakes-for purposes of Texas Parks and Wildlife Code, Chapters 61 and 66, the following public waters are considered designated urban lakes. [graphic] Dip net-A mesh bag suspended from a frame attached to a handle. Final destination for fish-A place either on the mainland, a peninsula, or barrier island where a fisherman finally lands his catch and does not further transport his fish by boat. Final destination does not include jetties or piers. Final destination for all other wildlife resources-The permanent residence of the person possessing or receiving the wildlife resource, or a part of the wildlife resource, or a commercial processing plant after the carcass of the wildlife resource has been finally processed. Fish- (A) Game fish-Blue catfish, blue marlin, broadbill swordfish, brown trout, channel catfish, cobia, crappie (black and white), flathead catfish, Guadalupe bass, king mackerel, largemouth bass, longbill spearfish, pickerel, red drum, rainbow trout, sailfish, sauger, sharks, smallmouth bass, snook, Spanish mackerel, spotted bass, spotted seatrout, striped bass, tarpon, wahoo, walleye, white bass, white marlin, yellow bass, and hybrids or subspecies of the above. (B) Non-game fish (rough fish and bait fish)-All species not listed as game fish, except endangered and threatened fish which are defined and regulated under separate proclamations. Fishing-Taking or attempting to take aquatic animal life by any means. Fish length-The total length which is that straight-line distance measured perpendicularly from the tip of the snout to the extreme tip of the tail (caudal fin) that is squeezed together or rotated to produce the maximum overall length while the fish is lying on its side with the jaw closed. Fish species names-The names of fishes are those prescribed by the American Fisheries Society in the most recent edition of "A List of Common and Scientific Names of Fishes of The United States and Canada. " Fly fishing-The use of artificial wet or dry flies as a lure. Wet or dry flies are defined as lures which have a body of either synthetic or natural materials (such as foam, cork, yarn, sponge, chenille, hair, metallic tinsel or feathers) and the fly, main fishing line, or leader do not have attached any devices such as spinners, springs, or beads other than split shot or flat lead attached directly to the main line or leader for weight. Gaff-Any hand-held pole with a hook attached. Game animals-Are: (A) Mule deer, white-tailed deer, pronghorn antelope, desert bighorn sheep, gray or cat squirrels, fox squirrels or red squirrels, and collared peccary or javelina (Texas Parks and Wildlife Code, sec.63.001); (B) In Armstrong, Briscoe, Donley, Floyd, Hall, Motley, Randall, and Swisher counties only, aoudad sheep are game animals (Texas Parks and Wildlife Code, sec.63.001); (C) In Brewster, Culberson, Dallam, Deaf Smith, El Paso, Hartley, Hudspeth, Jeff Davis, Moore, Oldham, Pecos, Potter, Presidio, Reeves, and Terrell counties wild elk are game animals (Texas Parks and Wildlife Code, sec.63.001). Game birds-Wild turkey, wild ducks of all varieties, wild geese of all varieties, wild brant, wild grouse, wild prairie chickens, wild pheasants of all varieties, wild partridge, wild bobwhite quail, wild scaled quail, wild Mearns' quail, wild Gambel's quail, wild red-billed pigeons, wild band- tailed pigeons, wild mourning doves, wild white-winged doves, wild white-fronted doves, wild snipe of all varieties, wild shore birds of all varieties, chachalacas, wild plover of all varieties, and wild sandhill cranes (Texas Parks and Wildlife Code, sec.64.001). Gear tag-A tag constructed of material as durable as the device to which it is attached. The gear tag must be legible and contain the name and address of the person using the device and the date the device was set out. Gig-Any hand held shaft with single or barbless. Gill net-A single wall of webbing held vertically in the water by a line with weights and a line with floats. Grabble-To take or attempt to take fish with the hand. Headboat-A vessel in saltwater that carries seven or more persons who fish for a fee. Hoop net-A net distended by a series of hoops or frames, covered by non- metallic netting. Hunt-Includes take, kill, pursue, trap, and the attempt to take, kill, or trap (Texas Parks and Wildlife Code, sec.61.005(1)). Jug line-A fishing line with five or less hooks tied to a free-floating device. LAMPS Annual Recommendation-An evaluation of the deer population and deer habitat on a tract of land derived by data collected by the landowner, provided to the department on a LAMPS application or LAMPS hunter harvest form and reviewed by the department to determine an allowable issuance of LAMPS antlerless deer permits. LAMPS Antlerless Deer Permit-A permit issued by the department under the provisions of a LAMPS annual recommendation that allows the taking of one antlerless deer. Migratory game birds-Wild ducks of all species, wild geese and wild brant of all species, wild coot, wild rail, wild gallinules, wild plovers, Wilson's snipe or jacksnipe, woodcock, mourning doves, white-winged doves, white-tipped (white-fronted) doves, red-billed pigeons, band-tailed pigeons, shorebirds of all varieties, and sandhill cranes (Texas Parks and Wildlife Code, sec.64.021(1)). Monofilament-A single synthetic filament. Muzzleloader-Any firearm that is loaded only through the muzzle using black powder or Pyrodex and separate projectile(s) and is ignited by a flint or percussion mechanism. Natural bait (saltwater)-A whole or cut-up portion of a fish or shellfish or a whole or cut-up portion of plant material in its natural state, provided that none of these may be altered beyond cutting into portions. Noodling pole-A length of pole constructed of wood, metal, fiberglass or other material whether hollow or solid, with a hook attached and used to snag or foul hook fish. Per license year-The period of time for which a hunting license is valid whether or not the taking of wildlife is permitted in one or more periods during this time. Pole and line -A line with hook, attached to a pole. This gear includes rod and reel. Purse seine (net)-A net with flotation on the corkline adequate to support the net in open water without touching bottom with a rope or wire cable strung through rings attached along the bottom edge to close the bottom of the net. Possession limit -The maximum number of a species of game, fish, or other animals that may be possessed at one time. Reservoir boundaries for bag, possession, and length limits- (A) Caddo Lake in Marion and Harrison counties comprises all impounded waters of Big Cypress Bayou from the Texas-Louisiana border upstream to the State Highway 43 bridge. (B) Cooper Lake in Delta and Hopkins counties comprises all waters within the Corps of Engineers lands on Cooper Lake upstream from State Highway 19/154 and downstream from F.M. Road 71. (C) Lake O'the Pines in Camp, Marion, Morris, and Upshur counties comprises all impounded waters of Big Cypress Creek from Ferrell's Bridge dam (the Lake O'the Pines dam) upstream to U.S. Highway 259 bridge. (D) Lake Palestine in Anderson, Cherokee, Henderson, Smith, and Van Zandt counties comprises all impounded waters of the Neches River from the Blackburn Crossing dam (the Lake Palestine dam) upstream to F.M. Road 279 bridge including Kickapoo and Flat Creeks in Henderson county. Sail line-A type of trotline with one end of the main line fixed on the shore, the other end of the main line attached to a wind-powered floating device or sail. Seine-A section of non-metallic mesh webbing, the top edge buoyed upwards by a floatline and the bottom edge weighted. Silencer or sound suppressing device-Any device that reduces the normal noise level created when the firearm is discharged or fired. Snagging or jerking fish-A method of taking fish with one or more hooks attached to a line or artificial lure used in a manner to foul hook a fish. A fish is foul hooked when caught by a hook in an area other than the fish's mouth. Spear-Any shaft with single or multiple which may be propelled by any means, but does not include arrows. Spear gun-Any hand-operated device designed and used for propelling a spear, but does not include the crossbow. Spike-buck deer -A deer having a hardened antler protruding through the surface of the skin with neither antler having a fork or branching point. Texas Parks and Wildlife Department or department-As the context requires, the Parks and Wildlife Department, or a specifically authorized employee of the department. Throwline-A fishing line with five or less hooks and with one end attached to a permanent fixture. Components of a throwline may also include swivels, snaps, rubber and rigid support structures. Trammel net-A net consisting of three walls of webbing suspended from a float line and attached to a single lead line. Trap-A rigid device of various designs and dimensions used to entrap aquatic organisms. Trawl-A bag-shaped net which is dragged along the bottom or through the water to catch fish or other aquatic organisms. Trotline-A nonmetallic main fishing line with more than five hooks attached and with each end attached to a fixture. Umbrella net-A non-metallic mesh net that is suspended horizontally in the water by multiple lines attached to a rigid frame. Upstream boundary of Sam Rayburn Reservoir on the Angelina River-The Texas Eastern Transmission Company pipeline. Wildlife Habitat and Harvest Annual Recommendation -A written document provided to the landowner or landowner's agent and approved by a department biologist after an on-site evaluation is made of the deer population and deer habitat on a tract of land. Wildlife Management Plan-A written document provided to the landowner or landowner's agent and approved by a department biologist of at least a CS VI level following an evaluation of wildlife habitat and populations. Wildlife resources -All game animals, game birds, marine animals, fish, and other aquatic life (Texas Parks and Wildlife Code, sec.61. 005(2)). Wounded deer-A deer leaving a blood trail. sec.65.32. Mandatory Deer Check Stations. (a) The department may establish deer check stations in any county of the state for the purpose of collecting biologic information on all deer taken in that county. (b) The entire carcass, with head and hide attached, except that internal and sexual organs may be removed (field-dressed), of all deer taken in a county in which mandatory check stations have been established must be presented: (1) To a designated check station agent within 24 hours of take; (2) By the person, or legal guardian of the person, who killed the deer. (c) Deer check stations shall be under the direction of an agent designated by the department. Agents shall: (1) register each deer presented at a check station; (2) issue a special possession tag, provided by the department, for each deer presented at a check station; (3) maintain records as prescribed in the record book supplied by the department; and (4) allow inspection of all deer check station records upon request of the department during normal working hours. (d) Except during the 24-hour period immediately following time of kill, it is a violation to possess a deer taken in Hopkins and Hunt counties unless the deer has been checked and tagged by a designated deer check station agent. (e) A person who fails or refuses to comply with this section commits an offense and is in violation of these rules. 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 June 9, 1994. TRD-9442060 Paul M. Shinkawa Acting General Counsel Texas Parks and Wildlife Department Proposed date: September 1, 1994 Proposal publication date: April 12, 1994 For further information, please call: 1-800-792-1112, Ext. 4433 or (512) 389- 4433 31 TAC sec.65.80 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing held May 19, 1994, adopted the repeal of 31 TAC sec.65.80, concerning the regulation of freshwater mussels. The repeal was adopted without changes to the proposed text as published in the February 18, 1994, issue of the Texas Register (19 TexReg 1195). Statutory authority for regulation of mussels and clams was transferred from Parks and Wildlife Code Chapter 61 to a new Chapter 78 by the 73rd Texas Legislature. Parks and Wildlife Code Chapter 78 directs the Commission to regulate by proclamation the taking, possession, purchase and sale of mussels and clams. Existing 31 TAC sec.65.80 lacked statutory authority and is therefore repealed. New 31 TAC sec.sec.57.156-57.158 will provide regulations for mussels and clams. The rules are designed to prevent depletion or waste, to simplify regulations for law enforcement, to provide harvest opportunity of fisheries and wildlife resources consistent with acknowledged fisheries and wildlife tenets. There were no public comments regarding adoption of the repeal. The repeals are adopted are under the Parks and Wildlife Code, Chapter 78, Mussels and Clams, which provides the Parks and Wildlife Commission with authority to establish regulations for management of this fishery resource. 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 June 16, 1994. TRD-9442641 Paul M. Shinkawa Acting General Counsel Texas Parks and Wildlife Department Effective date: July 8, 1994 Proposal publication date: February 18, 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 31 TAC sec.353.11 The Texas Water Development Board (board) adopts the repeal of sec.353.11 and new sec.353.11, concerning charges for public records. New sec.353.11 is adopted with changes to the proposed text as published in the February 11, 1994, issue of the Texas Register (19 TexReg 1025). The new section concerns the adoption of rules for 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. The current version of sec.353.11 is repealed to allow the new charges to be implemented. No comments were received regarding the repeal and the adoption of the new section. Changes were made to sec.353.11(a)(2) and (f)(2) to reflect a change in the General Services Commission rules for the definition of "readily available." The repeal is adopted 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. 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 June 16, 1994. TRD-9442521 Suzanne Schwartz Executive Administrator Texas Water Development Board Effective date: July 7, 1994 Proposal publication date: February 11, 1994 For further information, please call: (512) 463-7981 The new section is adopted 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 a substantial amount of time 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 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. (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 nine-track tape is $72.50, 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 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 June 16, 1994. TRD-9442520 Suzanne Schwartz Executive Administrator Texas Water Development Board Effective date: July 7, 1994 Proposal publication date: February 11, 1994 For further information, please call: (512) 463-7981 Relationship Between the Board and Private Organizations or Donors 31 TAC sec.sec.353.80-353.93 The Texas Water Development Board (board) adopts new sec. sec.353.80-353.93, concerning the relationship between the board and private organizations or donors, without changes to the proposed text as published in the May 6, 1994 issue of the Texas Register (19 TexReg 3420). New sec.sec.353.80-353.93 are adopted to conform with requirements of Government Code, Chapter 2255, sec.2255.001, Government Code, which requires that state agencies authorized to accept money from a private donor or for which a private organization exists that is designed to further the purposes and duties of the agency, shall adopt rules governing the relationship between donor or organization and state agency. The new section will enable the board to establish procedures and standards of conduct for the acceptance of private donations made to the board in the furtherance of the purposes and duties of the board. No comments were received regarding adoption of the new sections. A technical correction was made to section 353.80 to change the word chapter to section. The new sections are adopted pursuant to the Texas Water Code, sec.6.101, which authorizes the board to adopt rules necessary to carry out its powers and duties and sec.6.1912 which authorizes the executive administrator of the board to accept money and other assistance from any source to carry out the powers and duties of the board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on June 16, 1994. TRD-9442519 Suzanne Schwartz Executive Administrator Texas Water Development Board Effective date: July 7, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 463-7981 Chapter 379. Advisory Committees 31 TAC sec.379.4 The Texas Water Development Board (board) adopts an amendment to 31 TAC sec.379.4, concerning Advisory Committees, without changes to the proposed text as published in the May 13, 1994, issue of the Texas Register (19 TexReg 3633). The amendment to sec.379.4 will expand the authority of the Economically Distressed Areas Program (EDAP) Innovative and Alternative Technology Committee to allow this committee to review and report on non-EDAP projects. This broadening of committee authority will significantly increase the contribution that can be made in advancing innovative and alternative technology for cost effective projects. No comments were received on the the proposed section. A technical correction is made to replace a line which was inadvertently deleted in the proposed publication. The amendment is adopted under the authority of the Texas Water Code, sec.6. 101 which provides the Texas Water Development Board with the authority to adopt rules necessary to carry out the powers and duties in the code and laws of the state; and Texas Civil Statutes, Article 6252-33, which requires the board to adopt rules for advisory committees to the board. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on June 16, 1994. TRD-9442522 Suzanne Schwartz Executive Administrator Texas Water Development Board Effective date: July 7, 1994 Proposal publication date: February 11, 1994 For further information, please call: (512) 463-7981 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part IX. Commission on Jail Standards Chapter 259. New Construction Rules The Texas Commission on Jail Standards adopts repeals of sec.sec.259.660, 259.156, 259.243, 259.349, concerning New Construction Rules, without changes to the proposed text as published in the May 10, 1994 issue of the Texas Register (19 TexReg 3570). Repeal of these rules will allow for adoption of new rules regarding the emergency operation of doors. The repeals function to allow adoption of new rules eliminating the requirement for a third means of emergency door release. No comments were received regarding adoption of the repeals. New Jail Design, Construction and Furnishing Requirements 37 TAC sec.259.60 The repeals are adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994 TRD-9442316 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 The Texas Commission on Jail Standards adopts new rules sec.sec.259.60, 259. 156, 259.243 and 259.349, concerning New Construction Rules, without changes to the proposed text as published in the May 10, 1994, issue of the Texas Register (19 TexReg 3570). Adoption of these rules will provide effective jail standards relating to the emergency operation of doors to save counties money. The rules function to eliminate the requirement for a third means of emergency door release. No comments were received regarding adoption of the new sections. 37 TAC sec.259.60 The new sections are adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994 TRD-9442312 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 New Lockup Design, Construction and Furnishing Requirements 37 TAC sec.259.156 The repeal is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994 TRD-9442317 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 The new section is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442313 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 New Low-Risk and Medium-Risk Design, Construction and Furnishing Requirements 37 TAC sec.259.243 The repeal is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442318 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 The new section is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442314 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 Podular/Direct Supervision Design, Construction and Furnishing Requirements 37 TAC sec.259.349 The repeal is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442319 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 The new section is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442315 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 Chapter 260. County Correctional Centers CCC Design, Construction and Furnishing Requirements 37 TAC sec.260.63 The Texas Commission on Jail Standards adopts repeal of sec.260.63, concerning County Correctional Centers, without changes to the proposed text as published in the May 10, 1994, issue of the Texas Register (19 TexReg 3571). Repeal of this rule will allow for adoption of new rules regarding the emergency operation of doors. The repeal functions to allow adoption of new rules eliminating the requirement for a third means of emergency door release. No comments were received regarding adoption of the repeal. The repeal is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442320 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 The Texas Commission on Jail Standards adopts new sec.260.63, concerning County Correctional Centers, without changes to the proposed text as published in the May 10, 1994, issue of the Texas Register (19 TexReg 3571). Adoption of this rule provides effective jail standards relating to the emergency operation of doors to save counties money. The rule functions to eliminate the requirement for a third means of emergency door release. No comments were received regarding adoption of the new section. The new section is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442311 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 Chapter 261. Existing Construction Rules The Texas Commission on Jail Standards adopts repeals of sec.sec.261.49, 261. 145, and 261.232, concerning Existing Construction Rules, without changes to the proposed text as published in the May 10, 1994, issue of the Texas Register (19 TexReg 3572). Repeal of these rules allows for adoption of new rules regarding the emergency operation of doors. The repeals function to allow adoption of new rules eliminating the requirement for a third means of emergency door release. No comments were received regarding adoption of the repeals. Existing Jail Design, Construction and Furnishing Requirements 37 TAC sec.261.49 The repeal is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442321 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 The Texas Commission on Jail Standards adopts new sec. sec.261.49, 261.145, and 261.232, concerning Existing Construction Rules, without changes to the proposed text as published in the May 10, 1994, issue of the Texas Register (19 TexReg 3572). Adoption of these rules provides effective jail standards relating to the emergency operation of doors to save counties money. The rules function to eliminate the requirement for a third means of emergency door release. No comments were received regarding adoption of the new sections. The new sections are adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442324 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 Existing Lockup Design, Construction and Furnishing Requirements 37 TAC sec.261.145 The repeal is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442322 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 The new section is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442325 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 Existing Low-Risk Design, Construction and Furnishing Requirements 37 TAC sec.261.232 The repeal is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442323 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 The new section is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing standards for the construction, equipment, maintenance and operation of county jails. 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 June 14, 1994. TRD-9442326 Jack E. Crump Executive Director Commission on Jail Standards Effective date: July 5, 1994 Proposal publication date: May 10, 1994 For further information, please call: (512) 463-5505 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 15. Medicaid Eligibility Subchapter F. Budget and Payment Plans 40 TAC sec.15.502, sec.15.503 The Texas Department of Human Services (DHS) adopts amendments to sec.15. 502 and sec.15.503, concerning deductions of incurred medical expenses and protection of spousal income and resources in its Medicaid Eligibility rule chapter, without changes to the proposed text as published in the May 13, 1994, issue of the Texas Register (19 TexReg 3639). The justification for the amendments is to eliminate oxygen as an allowed incurred medical expense; specify additional deductions from applied income for home maintenance and guardian fees; and eliminate unlimited burial funds as an exclusion for resource assessment and initial eligibility determination under spousal impoverishment provisions. The amendments will function by clarifying policy regarding allowable deductions from applied income; ensuring clients who need guardians will be able to pay for those services; and ensuring that federal and state rules regarding spousal income are consistent. No comments were received regarding adoption of the amendments. The amendments are 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 provides the Health and Human Services Commission with the authority to administer federal medical assistance funds. The amendments implement the Human Resources Code sec. sec.22.001-22.024 and sec.sec.32.001-32.042. 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 June 17, 1994. TRD-9442695 Nancy Murphy Section Manager, Media and Policy Services Texas Department of Human Services Effective date: August 1, 1994 Proposal publication date: May 13, 1994 For further information, please call: (512) 450-3765