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.113.19 The General Services Commission adopts an amendment to sec.113.19, concerning the catalogue purchase procedure for automated information systems. Section 113.19 is being adopted without changes to the proposed text as published in the May 6, 1994, issue of the Texas Register (19 TexReg 3398). The amendment to sec.113.19 will eliminate unnecessary requirements for vendors to be designated as qualified information system vendors. The amendment to sec.113.19 will have a positive effect on small business by eliminating compliance requirements for all vendors. One comment was received recommending that an explicit recognition of the inapplicability of the catalogue purchase procedure to certain complex types of acquisitions be added to the proposed rules. The commission disagrees. Texas Civil Statutes, Article 601b, sec.1.02(4), defines automated information systems broadly to include products and services. With these two definitions in place, the GSC feels that any further recognition of products and services is not necessary. Akin, Gump, Strauss, Hauer and Feld, L.L.P. commented on the proposed rule, but were neither for or against adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 601b, sec.3.081, which provide the General Services Commission with the authority to promulgate rules necessary to accomplish the purpose of the section. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on June 28, 1994. TRD-9443258 Judith M. Porras General Counsel General Services Commission Effective date: July 21, 1994 Proposal publication date: May 6, 1994 For further information, please call: (512) 463-3960 Surplus Property Sales 1 TAC sec.113.73 The General Services Commission adopts an amendment to sec.113.73, concerning sale of surplus firearms. Section 113.73 is adopted without changes to the proposed text as published in the March 4, 1994, issue of the Texas Register (19 TexReg 1509). Section 113.73 is adopted to address concerns raised by internal audit; namely, to ensure that the sale of surplus firearms is not made to persons with criminal backgrounds. The amendment will provide safeguards for the disposal of surplus firearms. One comment was received requesting affirmation that the proposed amendment is not in conflict with provisions under Government Code, sec.sec.411.020, 614.051, and 614.052, allowing for the sale of firearms to law enforcement officers, retired law enforcement officers and the family members of deceased law enforcement officers. The commission agrees. The rule applies only to surplus sales under Texas Civil Statutes, Article 601b, Article 9. The Texas Department of Public Safety commented in favor of adoption of the rule. The amendment is adopted under Texas Civil Statutes, Article 601, sec.9.09, which provide the General Services Commission with the authority to promulgate rules necessary to accomplish the purpose of Article 9. 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 28, 1994. TRD-9443257 Judith M. Porras General Counsel General Services Commission Effective date: July 21, 1994 Proposal publication date: March 4, 1994 For further information, please call: (512) 463-3583 Cooperative Purchasing Program 1 TAC sec.sec.113.81, 113.83, 113.85, 113.87 The General Services Commission adopts amendments to sec. sec.113.81, 113.83, 113.85, and 113.87, concerning the commission's cooperative purchasing program. The amendments are adopted without changes to the proposed text as published in the April 5, 1994, issue of the Texas Register (19 TexReg 2345). The amendments are adopted to update rules to conform to Texas Civil Statutes, Article 601b, sec.3.04, as amended by the 73rd Legislature. The amendments will allow certain service organizations and mental health and mental retardation centers to enjoy the savings offered by participation in the cooperative purchasing program. The amendments are adopted under Texas Civil Statutes, Article 601b, which provide the General Services Commission with the authority to promulgate rules necessary to accomplish the purpose of the section. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on June 28, 1994. TRD-9443256 Judith Monaco Porras General Counsel General Services Commission Effective date: July 21, 1994 Proposal publication date: April 5, 1994 For further information, please call: (512) 463-3960 TITLE 7. BANKING AND SECURITIES Part III. State Banking Board Chapter 31. Miscellaneous Subchapter A. Procedures The State Banking Board (the Board ) adopts new sec.sec.31.1-31.4 (Subchapter A), sec.sec.31.20-31.22 (Subchapter B), and sec.31.40 and sec.31.41 (Subchapter C), concerning rules and procedural regulations considered necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before the Board, without changes to the proposed text as published in the May 3, 1994, issue of the Texas Register (19 TexReg 3320). All pre-existing sections of Chapter 31 are repealed in this issue of the Texas Register. All sections of Chapters 33 and 35 of Title 7 are also repealed in this issue of the Texas Register. The new sections comprise all of Chapter 31 and generally are part of a comprehensive revision and recodification of all Board, Finance Commission, Commissioner, and Department of Banking practice and procedure rules related to matters regulated by the Department of Banking. This revision and recodification will result in the deletion of some sections, the adoption of new sections, and the revision and reenactment of others with new section numbers assigned. Substantive revisions are made in new sec.31.4 from its predecessor section consistent with and pursuant to the provisions of the Government Code, sec.2005.003, as discussed in the proposal preamble (19 TexReg 3320). Section 31.40 and sec.31.41 are new in that they did not have counterparts in the pre- existing regulations, and were also discussed in the proposal preamble. New sec.31.1 and sec.31.2 replace Chapters 33 and 35 of Title 7, by incorporating the procedures of Chapter 13 of Title 7 to apply to proceedings on behalf of the Board, although a portion of sec.31.2 is directly derived from pre-existing and now repealed sec.35.6. New sec.sec.31.3, 31.4, and 31.20 are amendments to and relocation of certain sections previously contained in Chapter 31 of Title 7 (pre-existing and now repealed sec.sec.31.5, 31.7, and 31. 6, respectively). Substantive amendments are made to sec.31.4 and sec.31.20, as discussed in the proposal preamble. No comments were received regarding adoption of the new section. 7 TAC sec.sec.31.1-31.4 The new sections are adopted under Texas Civil Statutes, Article 342-115(6) and Article 342-1106(a), which authorize the Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it; the Government Code, sec.2005.003, which requires an agency to adopt procedural rules for processing permit applications and issuing permits; and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443332 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 7 TAC sec.sec.31.1-31.7 The State Banking Board (the Board ), adopts the repeal of sec.sec.31.1-31.7 concerning miscellaneous rules governing the affairs of the Board, without changes to the proposed text as published in the May 3, 1994, issue of the Texas Register (19 TexReg 3320). The repeal is part of a comprehensive revision and recodification of all Board, Finance Commission, Banking Commissioner, and Department of Banking practice and procedure rules related to matters regulated by the Department of Banking. This revision and recodification will result in the deletion of some sections, the adoption of new sections, and the revision and reenactment of others with new section numbers assigned. Several new sections for Chapter 31 of Title 7 are adopted in this issue of the Texas Register. The sections are repealed to remove obsolete or ineffective provisions, to eliminate superseded references to statutes that have been amended, repealed, or recodified, and to correct erroneous cross-references. No comments were received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 342-115(6), which authorize the Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it, and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443335 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Subchapter B. Bank Applications 7 TAC sec.sec.31.20-31.22 The new sections are adopted under Texas Civil Statutes, Article 342-115(6) and Article 342-1106(a), which authorize the State Banking Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it; the Government Code, sec.2005.003, which requires an agency to adopt procedural rules for processing permit applications and issuing permits; and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443333 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Subchapter C. Trust Company Applications 7 TAC sec.sec.31.40-31.41 The new sections are adopted under Texas Civil Statutes, Article 342-115(6) and Article 342-1106(a), which authorize the State Banking Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it; the Government Code, sec.2005.003, which requires an agency to adopt procedural rules for processing permit applications and issuing permits; and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443334 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Chapter 33. Procedures for Hearing Pleadings and Applications The State Banking Board (the Board ), adopts the repeal of sec.sec.33.1-33.10, 33.21-33.34, 33.51-33.55, 33.61, 33.71, and 33.101-33.115 concerning practice and procedure before the Board, without changes to the proposed text as published in the May 3, 1994, issue of the Texas Register (19 TexReg 3323). The sections are repealed as part of a comprehensive revision and recodification of all Board, Finance Commission, Banking Commissioner, and Department of Banking practice and procedure rules related to matters regulated by the Department of Banking. This revision and recodification will result in the deletion of some sections, the adoption of new sections, and the revision and reenactment of others with new section numbers assigned. Existing sec.33.34 and sec.33.61 are amended and adopted under new section numbers as part of proposed Chapter 31 of Title 7 in this issue of the Texas Register . No sections are proposed for Chapter 33 of Title 7, and the chapter is be reserved for future use. No comments were received regarding adoption of the repeals. 278>7 TAC sec.sec.33.1-33.10 The repeals are adopted under Texas Civil Statutes, Article 342-115(6), which authorizes the Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it, and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443336 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Evidence and Witnesses 7 TAC sec.sec.33.21-33.34 repeals are adopted under Texas Civil Statutes, Article 342-115(6), which authorize the State Banking Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it, and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443337 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Hearings 7 TAC sec.sec.33.51-33.55 The repeals are adopted under Texas Civil Statutes, Article 342-115(6), which authorize the State Banking Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it, and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443338 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Change of Domicile 7 TAC sec.33.61 The repeal is adopted under Texas Civil Statutes, Article 342-115(6), which authorize the State Banking Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it, and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443339 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Conversion of National Bank to State Bank 7 TAC sec.33.71 The repeal is adopted under Texas Civil Statutes, Article 342-115(6), which authorize the State Banking Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it, and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443340 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 General Rules 7 TAC sec.sec.33.101-33.115 The repeals are adopted under Texas Civil Statutes, Article 342-115(6), which authorize the State Banking Board to adopt such rules and procedural regulations as may be necessary to facilitate the fair hearing and adjudication of charter applications and such other business to come before it, and the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443341 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Chapter 35. Rulemaking Procedure sec.sec.35.1-35.6 The State Banking Board (the Board), adopts the repeal of sec.sec.35. 1-35.6 and 35.11-35.16, concerning rulemaking by the Board, without changes to the proposed text as published in the May 3, 1994, issue of the Texas Register (19 TexReg 3325). The sections are generally considered unnecessary because the Government Code, sec.2001.021 et seq provides comparable requirements regarding rulemaking procedures. Further, the sections are being repealed as part of a comprehensive revision and recodification of all Board, Finance Commission, Banking Commissioner, and Department of Banking practice and procedure rules related to matters regulated by the Department of Banking. This revision and recodification will result in the deletion of some sections, the adoption of new sections, and the revision and reenactment of others with new section numbers assigned. Rulemaking proceedings will be governed by 7 TAC sec.31.2, adopted in this issue of the Texas Register for comment. No sections are proposed for Chapter 35 of Title 7, and the chapter will be reserved for future use. No comments were received regarding adoption of the repeals. The repeals are adopted under the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature andrequirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443342 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 Petitions 7 TAC sec.sec.35.11-35.16 The repeals are adopted under the Government Code, sec.2001.004(1), which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. 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 July 1, 1994. TRD-9443343 Everette D. Jobe General Counsel State Banking Board Effective date: July 22, 1994 Proposal publication date: May 3, 1994 For further information, please call: (512) 475-1300 TITLE 22. EXAMINING BOARDS Part VIII. Texas Appraiser Licensing and Certification Board Chapter 153. Provisions of the Texas Appraiser Licensing and Certification Act 22 TAC sec.sec.153.1, 153.20, 153.21, 153.35, 153.37 The Texas Appraiser Licensing and Certification Board adopts amendments to sec.153.1, Definitions; sec.153.20, Guidelines for Revocation and Suspension; sec.153.21, Appraiser Trainees; sec.153.35, Recordkeeping; and sec.153.37, Offenses, without changes to the proposed text as published in the May 13, 1994, issue of the Texas Register (19 TexReg 3622). The amendment to sec.153.1 adds the words "or appraiser services" to duties an appraiser trainee may perform. The amendment to sec.153.20 use the words "appraiser services" in place of "appraisal services" or "appraisals" to clarify the intention. Provisions were added concerning full disclosure. False or misleading conduct or advertising is specifically prohibited. The amendment to sec.153.21 adds "appraiser services" to the duties an appraiser trainee may perform and conforms with the amendment to sec.153.1. The amendments to sec.153. 35 and sec.153.37 replace the words "appraisal" with "appraiser services" to clarify intentions. No comments were received regarding adoption of the 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 29, 1994. TRD-9443213 Renil C. Liner Commissioner Texas Appraiser Licensing and Certification Board Effective date: July 21, 1994 Proposal publication date: May 13, 1994 For further information, please call: (512) 465-3950 22 TAC sec.sec.153.5, 153.9, 153.20 The Texas Appraiser Licensing and Certification Board adopts amendments to sec.153.5, relating to fees; sec.153.9, relating to applications; and sec.153. 20, relating to guidelines for revocation and suspension; investigations. Section 153.9 was adopted with changes to the proposed text as published in the April 5, 1994, issue of the Texas Register (19 TexReg 2347). Section 153.5 and sec.153.20 are adopted without changes and will not be republished. The amendment to sec.153.5(a) provides for the collection of a fee for a returned check. The adopted amendment to sec.153.5(b) eliminates the cashier's check or money order requirement for fee submission except for applications for Temporary Non-Resident Appraiser Registration in sec.153.9(b)(6) and for the Supplement to Application for Appraiser Certification or Licensing by Reciprocity in sec.153.9(b)(9). It also requires future fees paid by those who have not made good on a returned check to be in the form of a cashier's check or money order. The amendment to sec.153.9 removes terminology from various applications and other forms specifying that fees must be submitted in the form of a cashier's check or money order. The amendment to sec.153.20 adds failure to make good on a returned check within 30 days to those causes for which a license or certification could be suspended or revoked. No comments were received regarding adoption of the rules. sec.153.9. Applications. (a) (No change.) (b) The Texas Appraiser Licensing and Certification Board adopts by reference the following forms approved by the board in 1991 and published and available from the board, P.O. Box 12188, Austin, Texas 78711-2188. (1) TALCB Form 1.3, Application for Appraiser Certification or Licensing; (2)-(3) (No change.) (4) TALCB Form 4.4, Application for Approval as an Appraiser Trainee; (5) (No change.) (6) TALCB Form 6.1, Temporary Non-Resident Appraiser Registration; (7) TALCB Form 8.2, Change of Office Address; (8) TALCB Form 9.1, Addition or Termination of Appraiser Trainee Sponsorship; (9) TALCB Form 10.0, Supplement to Application for Appraiser Certification or Licensing by Reciprocity. (c)-(g) (No change.) 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 29, 1994. TRD-9443211 Renil C. Liner Commissioner Texas Appraiser Licensing and Certification Board Effective date: July 21, 1994 Proposal publication date: April 5, 1994 For further information, please call: (512) 465-3950 Chapter 157. Rules Relating to Professional Conduct and Ethics 22 TAC sec.sec.157.1-157.5 The Texas Appraiser Licensing and Certification Board adopts new sec.sec.157. 1-157.5, concerning Rules Relating to Professional Conduct and Ethics, without changes to the proposed text as published in the May 13, 1994, issue of the Texas Register (19 TexReg 3623). New sec.157.1 requires a certified or licensed real estate appraiser to communicate his or her opinion and advice in a way that will not be misleading and prohibits conduct that is unlawful, unethical or improper. Section 157.2 concerns Professional Independence. Section 157.3 relates to Hypothetical Conditions. Section 157.4 deals with Undisclosed Fees. Section 157.5 relates to Confidentiality. The new rules help clarify appropriate professional conduct and ethics and provide the listed unethical behaviors as a violation of sec.153.20(a)(2), which could result in revocation or suspension of licensure. The adopted rules are in compliance with federal Title XI, FIRREA (12 U.S.C. sec.3331 et seq.), and its interpretations and guidelines. No comments were received regarding adoption of the 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 29, 1994. TRD-9443212 Renil C. Liner Commissioner Texas Appraiser Licensing and Certification Board Effective date: July 21, 1994 Proposal publication date: May 13, 1994 For further information, please call: (512) 465-3950 TITLE 25. HEALTH SERVICES Part I. Texas Department of Health Chapter 265. General Sanitation Standards for Public Restroom Facilities 25 TAC sec.sec.265.121-265.123 The Texas Department of Health (department) adopts new sec.sec.265.121-265. 123, with changes to the proposed text as published in the February 11, 1994, issue of the Texas Register (19 TexReg 1010). The new sections cover general provision, definitions, and minimum standards for toilet facilities and toilet rooms at facilities where the public congregates. COMMENT: A commenter requested extending coverage to restaurant/bars with an occupant load of 300 or more, thus excluding restaurant/bars with an occupant load of less than 300. RESPONSE: The statute specifically exempts "restaurants" from the provisions of the regulations. COMMENT: A commenter suggested that libraries associated with colleges and universities or financed by the public should be excluded from the scope of the rules. RESPONSE: The department disagrees because these entities are not exempted in the statute. COMMENT: A commenter requested that a "portable toilet facility" be defined. RESPONSE: The department agrees and a definition is included. COMMENT: A commenter requested that the definition of the term "Standards" be expanded to include authorities with local jurisdiction. RESPONSE: The department agrees and has revised the definition. COMMENT: A commenter requested the definition of the term "temporary" be addressed. RESPONSE: The department disagrees because the statute does not provide sufficient latitude for defining the term. COMMENT: A commenter requested that we clearly state that toilets must be accessible to the handicapped also. RESPONSE: The department agrees and included wording stating the toilets would be accessible to all users. COMMENT: A commenter requested limiting the use of portable toilet facilities to only temporary outdoor activities. RESPONSE: The statute does not give the department the authority to limit use. COMMENT: A commenter requested the inclusion of more detail regarding the maintenance of toilet rooms and facilities in a sanitary condition. RESPONSE: The department agrees and included such detail in sec.265.123(a)) (4), (b)(1) and (2). COMMENT: A commenter requested that the mode of ventilation be addressed in the standards for toilet rooms at fixed locations that are not ventilated by mechanical means. RESPONSE: The department agrees and included such a reference in sec.265.123 (b)(4). COMMENT: A commenter expressed his belief that the table provided for the ratio of women's to men's water closets (toilets) would not meet the minimum 2: 1 women's to men's ratio at higher numbers. RESPONSE: The department disagrees and believes the commenter erred in his calculations. COMMENT: A commenter requested that the Texas State Board of Plumbing Examiners be included in the rules due to the technical nature of the building process. The commenter also expressed concern with the "lack of enforcement of the intent of HB 274 (sic)". RESPONSE: The department believes that the Texas State Board of Plumbing Examiners can be involved thorough a Memorandum of Understanding with the department. Senate Bill 274 amends Chapter 341 of the Health and Safety Code. Chapter 341 has no provision for enforcement other than by the Commissioner of Health or agents acting in his behalf. COMMENT: A commenter requested that local authorities be permitted to adopt more stringent regulations. RESPONSE: The department agrees and referenced this in sec.265.121 (b). Written comments were received from the Texas Board of Plumbing Examiners, the City of Austin, and Hampton Associates. Oral comments were received from one individual. None of the commenters were against adoption of the rules; however, some expressed concerns about specific parts of the rule, raised questions, and made recommendations. The new sections are adopted under Chapter 341 of the Health and Safety Code which provides the Texas Board of Health (board) with the authority to adopt rules consistent with Chapter 341 and establish standards and procedures for the management and control of sanitation and for health protection measures; and sec.12.001 which provides the board with authority to adopt rules to implement every duty imposed on the board, the department and the commissioner of health. sec.265.121. General Provisions. (a) Scope. These sections apply to facilities where the public congregates. This includes sports and entertainment arenas, stadiums, community and convention halls, specialty event centers, and amusement facilities. (b) Exclusion. The term "facilities where the public congregates" does not include hotels, churches, restaurants, bowling centers, public or private elementary or secondary schools, or historic buildings. If local standards or regulations are at least as or more stringent than these standards, these rules do not apply. (c) Purpose. The purpose of these sections is to prescribe minimum standards for the availability of sufficient temporary or permanent restrooms to meet the needs of the public at peak hours at publicly- and privately-owned facilities where the public congregates. (d) Penalty and enforcement. The statutory penalty and enforcement provisions covering violations of Chapter 341 and these sections are contained in the Health and Safety Code, Chapter 341, sec.341.091 and sec.341.092. (e) Applicability date. These sections apply to facilities on which construction is started on or after January 1, 1994, or on which structural alterations, repairs, or improvements exceeding 50% of the entire facility are undertaken on or after January 1, 1994. sec.265.122. Definitions. The following words and terms, when used in these sections, shall have the following meanings, unless the context clearly indicates otherwise. Approved-Approved by the Texas Department of Health, the local health authority, or the local building code enforcement officer, whichever shall maintain jurisdiction. Chemical toilets -A toilet facility in which human waste is collected in a container charged with a chemical for the purpose of disinfecting and deodorizing prior to disposal. Construction-The actual, physical initiation of the building process such as the clearing of land, moving of dirt or preparation of a building to begin work. Exceeding 50% of the entire facility-Structural alterations, repairs, or improvements with a cost exceeding 50% of the worth of the facility, as determined by the taxing authority maintaining jurisdiction. Facilities where the public congregates-Sports and entertainment arenas, stadiums, community and convention halls, specialty event centers, and amusement facilities. The term does not include hotels, churches, restaurants, bowling centers, public or private elementary or secondary schools, or historic buildings. Historic buildings -Buildings listed as historic by the Texas Historical Commission. May-Used to denote authorized alternatives to mandatory provisions of this regulation. Restroom-Toilet, chemical toilet, or water closet. Sanitary condition -That condition of good order and cleanliness which precludes the probability of disease transmission. Shall (or must) -Used to denote mandatory provisions of these sections. Should-Indicates provisions which are not mandatory, but which are recommended as good practice. Standards-Methods, practices, processes or operations necessary or appropriate to establish healthful conditions as determined by the authority having jurisdiction. Temporary toilet facilities-mobile trailers or prefabricated, skid-mounted, or otherwise portable structures. Toilet or toilet facility-A plumbing device for the purpose of defecation or urination, or both, including water closets and biological or chemical toilets, and urinals. Toilet room-An enclosed area containing one or more toilet facilities and offering personal privacy. Toilet rooms may be either permanently located (fixed) or portable. Urinal-A water-flushed fixture connected with a sewer, maintained within a toilet room for the sole purpose of urination. Water closet-A toilet facility which is connected to a sewer and flushed with water. sec.265.123. Standards for Toilet Facilities and Toilet Rooms. (a) General standards. (1) Toilet facilities shall be provided in separate toilet rooms for both sexes in all facilities where the public congregates. They shall be readily accessible to all users. (2) Toilet facilities shall be either water-actuated, chemical, or biological toilets. Other systems may be used only upon specific permission of the health authority having local jurisdiction. (3) If the use of restrooms is designated by gender, toilet facilities shall be provided for each sex at a ratio of not less than 2:1 women's to men's or according to the following table: [graphic] (4) Toilet rooms and facilities shall be maintained in a sanitary condition, free of objectionable odors during all hours the facility is open to the public. The floors, walls, ceilings, partitions and doors of all toilet rooms shall be of a finish that can be easily cleaned. Floors shall have a smooth, hard nonabsorbent surface such as portland cement, concrete, ceramic tile or other approved material which extends upward onto the walls at least five inches. Materials used in such walls shall be of a type not adversely affected by moisture. Walls within two feet of the front and sides of a urinal and water closets shall have a smooth, hard nonabsorbent surface of portland cement, concrete, ceramic tile or other smooth, hard nonabsorbent surface to a height of four feet. An adequate supply of toilet paper in a suitable holder shall be maintained for each toilet. Covered waste receptacles shall be provided in all toilet rooms used by women. (b) Specifications for toilet facilities and rooms at fixed locations. (1) Each toilet facility (water closet) at a fixed (permanent) location shall occupy a separate compartment equipped with a door and latch. Walls within two feet of the front and sides of a urinal and water closet shall have a smooth, hard nonabsorbent surface of portland cement, concrete, ceramic tile or other smooth, nonabsorbent surface to a height of four feet. Walls or partitions between fixtures shall be sufficiently high to assure privacy. Urinals do not need to occupy separate compartments. (2) Each toilet facility shall be so installed that the space around it can be easily cleaned. Walls within two feet of the front and sides of a urinal and water closet shall have a smooth, hard nonabsorbent surface of portland cement, concrete, ceramic tile or other smooth, nonabsorbent surface to a height of four feet. This provision does not prohibit the use of wall-hung toilet stools or urinals. (3) Each toilet seat shall have a seat made of substantial material having a nonabsorbent finish. (4) Toilet rooms at fixed locations that are not ventilated by mechanical means shall be provided with screened ventilation with openings of not less than 1/20th of the floor area. (c) Specifications for temporary toilet facilities and rooms. (1) Temporary toilet facilities shall be so constructed as to be readily accessible. (2) Buildings housing temporary toilet rooms may be mobile trailers or prefabricated, skid-mounted, or otherwise portable structures. If they contain more than one facility, each shall occupy a separate compartment with a door and a latch. Walls or partitions between toilets shall be sufficiently high to assure privacy. Urinals need not occupy separate compartments. (3) If the structure contains a tank in which waste is stored, the tank shall be vented to the outside of the structure. (4) Temporary toilet rooms that are not ventilated by mechanical means shall be provided with an adequate screened ventilation opening. 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 30, 1994. TRD-9443291 John T. Richards Assistant General Counsel, Office of General Counsel Texas Department of Health Effective date: July 21, 1994 Proposal publication date: February 11, 1994 For further information, please call: (512) 834-6635 TITLE 34. PUBLIC FINANCE Part I. Comptroller of Public Accounts Chapter 5. Funds Management (Fiscal Affairs) Uniform Statewide Accounting System 34 TAC sec.5.200 The Comptroller of Public Accounts adopts new sec.5.200, concerning the state property accounting system, with changes to the proposed text as published in the January 28, 1994, issue of the Texas Register (19 TexReg 574). The new section is necessary because of the recent implementation of the state property accounting system (SPAS) as the personal property fixed asset component of the uniform statewide accounting system. The following change was made to subclause (II) of subsection (e)(3)(B)(ii) of the proposed text. As changed, the subclause requires a state agency's report to the comptroller about its annual physical inventory to identify the individual that the comptroller may contact for information about the inventory. The subclause as proposed would have required the report to identify the individuals who conducted the inventory. The Texas Department of Transportation (TxDOT) submitted several written questions and comments about the proposed new section. Subsection (e)(3)(A) requires the head of a state agency to submit a report to the comptroller about the agency's annual physical inventory. Subclause (II) of subsection (e)(3)(B)(ii) requires the report to contain a signed statement that identifies the individuals who conducted the inventory. TxDOT said about this subclause: "Agencies reporting individuals who conducted the inventory should only name those individuals at the local level. Otherwise, TxDot requests clarification on how to report names of people conducting inventories, and the methods used." The comptroller agrees that the names of the individuals who conduct the inventory should not be reported to the comptroller. However, the comptroller believes the report should name an individual that the comptroller may contact for more information about the inventory. Subclause (II) has been changed accordingly. Subsection (g)(1)(D) requires the head of a state agency to inform the comptroller, the state auditor, the attorney general, and law enforcement personnel if the agency head has reasonable cause to believe that the agency's personal or trust property has been stolen. The report to the state auditor must be made by entering a deletion request into SPAS. The agency head should transmit to the state auditor by facsimile the appropriate form and police report within 24 hours after entering the deletion request. The report to law enforcement personnel must be made not later than the 48th hour after the reasonable cause arises. TxDOT believes there is an inconsistency between the 24 and 48 hour reporting requirements. More specifically, TxDOT believes a state agency's obligation to report stolen property to law enforcement personnel within 48 hours conflicts with the agency's discretion to provide a copy of the police report to the state auditor within 24 hours. The comptroller does not believe an inconsistency exists. Subsection (g)(1)(D)(ii) does not specify a deadline for a state agency to enter a deletion request into SPAS. But once the deletion request is entered, the subsection says that an agency should transmit a copy of the police report to the state auditor within 24 hours. Therefore, even if a state agency takes the entire 48 hours to report a theft to law enforcement personnel, it is still possible for the agency to send a copy of the police report to the state auditor within 24 hours after entering the deletion request. TxDOT also questioned the deadline for the reporting of a theft that occurs during a weekend or holiday. The comptroller believes that if the head of a state agency becomes aware that a theft has occurred during a weekend or holiday, then the agency head should report the theft to law enforcement personnel within 48 hours. The agency head should not necessarily wait until the next business day. Subsection (h)(1)(C) requires the property manager of a state agency to inform the comptroller, the state auditor, the attorney general, and law enforcement personnel if the manager has reasonable cause to believe that the agency's personal property has been stolen. TxDOT believes that this subsection duplicates subsection (g)(1)(D), discussed in the preceding paragraph. The comptroller does not believe a duplication exists. The intention of the subsections is to make both the head of a state agency and the agency's property manager responsible for reporting thefts. If a property manager has already reported a theft, then the subsections impliedly would not require the agency head to also report the theft. The reverse is also true. The proposed rule generally requires state agencies to report the value of personal property to SPAS. For personal property that has been donated to a state agency, subsection (j)(3)(B) requires the agency to report the fair market value of the property as determined through a reasonable market study. TxDOT has requested clarification on the type of study required, who would conduct the study, and the usefulness of the study in managing the state's assets. The comptroller believes that reporting the value of donated personal property is a universally recognized accounting procedure. The reports help the comptroller prepare accurate statements of the state's financial condition and provide state leaders with important information about state property. Because there is no current standard for appraising donated personal property, the subsection allows state agencies to use any reasonable market study. The comptroller has already issued a manual that identifies several acceptable study methods. That manual has been made available to TxDOT and other state agencies. Subsection (k)(3)(C) encourages reporting state agencies to reconcile quarterly the personal property balances on their internal accounting systems with the balances the agencies have reported to SPAS. TxDOT has asked who is responsible for performing the reconciliation. The subsection does not require a state agency to use particular individuals to perform the reconciliation. Therefore, a state agency is free to determine who should perform the reconciliation. Subsection (l)(5)(E) requires a state agency to report surplus personal property to SPAS before transferring, selling, or disposing of the property. TxDOT recommends that a "special code" should be developed for state agencies that want to list, as surplus, personal property that has not been reported to SPAS. TxDOT believes its recommendation would save employee time in entering property records on and deleting property records from SPAS. The comptroller is uncertain about how TxDOT's recommendation would be implemented. The purpose of the subsection's reporting requirement is to advertise the property's availability to the General Services Commission and the public. At this time, the reporting is the only available method for the advertising. Subsection (m)(2)(A) requires a state agency to print on a label the unique property inventory number of each item of personal property that is tracked on a unit basis. The label must be attached to the item in a highly visible location so that conducting a physical inventory is facilitated. TxDOT has said that printing an inventory number on a label would not be practical for certain equipment. For example, TxDOT says that a label on road equipment would be difficult to see and possibly would fall off the equipment. TxDOT recommends that vehicles and road equipment be identified as state property according to Texas Civil Statutes, Article 6701m-1. That statute requires each vehicle owned by the state to have the word "Texas" and the name of the agency that has custody of the vehicle inscribed on the side of the vehicle. The comptroller disagrees with TxDOT's recommendation. The possibility that a label will fall off can be minimized by placing the label in an appropriate location. If a label with a property number is not affixed to a vehicle, then inventorying the vehicle will be more difficult for state agencies. Article 6701m-1's requirements are not a substitute for the labels because the statute does not require an inventory number to be placed on a vehicle. TxDOT's final request is that the rule should be changed to provide more detail about the comptroller's requirements in various areas. For example, subsection (d)(2) requires a state agency that has not yet been certified as an internal or a reporting state agency to properly complete and submit the form required by the comptroller. The subsection does not describe the form. The comptroller disagrees with TxDOT's request because the comptroller has described and will continue to describe those requirements in manuals and publications that have been made available to state agencies. The new section is adopted under the Texas Government Code, sec.403.271(b), which requires the comptroller to adopt necessary rules for the implementation of the state property accounting system. sec.5.200. State Property Accounting System. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Annual physical inventory-The physical inventory that a state agency must conduct once each year in accordance with this section. (2) Betterment of personal property-An improvement of personal property that materially increases its serviceability or useful life, or both. (3) Capital asset-A possession of the state that has a value of at least $1,000 and an estimated useful life of more than one year. The term does not include real property, improvements to real property, or infrastructure. (4) Capital lease-A lease of personal property under which the lessee substantially assumes the risks and benefits of ownership as specified under generally accepted accounting principles. (5) Comptroller-The comptroller of public accounts for the State of Texas. (6) Controlled asset-A possession of the state that a state agency has determined must be secured and tracked because of the nature of the possession. The term does not include a capital asset, real property, an improvement to real property, or infrastructure. (7) Fiduciary fund-A fund held by a state agency as trustee of the fund. The term includes pension funds and non-expendable trust funds. (8) Include-A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded. (9) May not-A prohibition. The term does not mean "might not" or its equivalents. (10) Personal property-A capital asset or a controlled asset. (11) Proprietary fund-A self-supporting fund whose resources are generated through user charges. The term includes enterprise and internal service funds. (12) Reassignable personal property-Personal property that retains usage value for the state, continues to be functionally capable of serving a state agency, and is not surplus personal property. (13) Replacement of personal property-A replacement of an internal or external part of personal property that allows it to complete its normal useful life. (14) Salvage personal property-Personal property that no longer serves its original purpose because it is depleted, worn out, damaged, consumed, outdated, or obsolete. The term does not include personal property that has a remaining useful life. (15) State agency-A state governmental entity that manages, administers, or controls personal property. (16) State employee-An officer or employee of a state agency. (17) State property accounting system-The personal property fixed asset component of the uniform statewide accounting system. (18) Supplemental physical inventories-The optional physical inventories that a state agency conducts in addition to the required annual physical inventory. (19) Surplus personal property-Personal property in the possession of a state agency that is not currently needed by the agency and is not required for the agency's foreseeable needs. The term does not include salvage personal property. (20) Trust property-Property not owned by the state that a state agency temporarily holds on behalf of the owner. (b) Controlled assets. The state agency that manages, administers, or controls a possession of the state should use good business practices when determining whether the possession is a controlled asset. (c) Exemptions. (1) Equipment and supplies purchased through programs, contracts, or grants with the Texas Department of Health. (A) An item of equipment or a supply is exempt from the requirements of subsections (b) and (d)-(s) of this section if it is: (i) used to promote and maintain public health; (ii) is purchased by or for a qualified entity; and (iii) is purchased through a program, contract, or grant with the Texas Department of Health. (B) The exemption ends if the item or supply is returned to the Texas Department of Health upon the termination of the applicable program, contract, or grant. When the exemption ends, the formerly exempt equipment or supply must be reported to the state property accounting system in accordance with the comptroller's requirements. (C) A state agency that purchases an exempt item of equipment or a supply shall develop and maintain internal control procedures for keeping a complete and accurate inventory of the items exempt under subparagraph (A) of this paragraph. (D) In this paragraph, "qualified entity" includes an individual, a corporation, a local unit of government, and a state agency. (2) The Texas Rehabilitation Commission and the Texas Commission for the Blind. (A) A material, tool, book, or other necessary apparatus provided to a client by the Texas Rehabilitation Commission or the Texas Commission for the Blind is exempt from subsections (b) and (d)-(s) of this section. (B) The Texas Rehabilitation Commission and the Texas Commission for the Blind shall each develop and maintain internal control procedures for keeping a complete and accurate inventory of the items that are exempt under subparagraph (A) of this paragraph. (C) The state auditor may request to review an inventory required by subparagraph (B) of this paragraph at any time. (D) An item that no longer qualifies for an exemption under subparagraph (A) of this paragraph must be added to the state property accounting system. (3) Items provided to clients of state agencies. (A) The comptroller may exempt from the reporting requirements of this section a material, tool, book, or other necessary apparatus if the item is provided to a client by a qualifying state agency. (B) The appropriate state agency shall develop and maintain internal control procedures for keeping a complete and accurate inventory of the items that are exempt under subparagraph (A) of this paragraph. (C) The state auditor may request to review an inventory required by subparagraph (B) of this paragraph at any time. (D) An item that no longer qualifies for an exemption under subparagraph (A) of this paragraph must be added to the state property accounting system. (d) Certification of internal state agencies and reporting state agencies. (1) General requirement. A state agency must be certified as an internal state agency or a reporting state agency. (2) Initial certification. A state agency that has not been certified before the effective date of this section must properly complete and submit to the comptroller the form required by the comptroller. The agency must specify on the form whether the agency wants certification as an internal state agency or a reporting state agency. The comptroller shall review the form and consider the agency's ability to comply with this section before certifying the agency. (3) State agency requests for changes in certification. (A) A reporting state agency may change its certification to an internal state agency by: (i) properly completing the form required by the comptroller; and (ii) obtaining the comptroller's approval of the change. (B) An internal state agency may change its certification to a reporting state agency by: (i) properly completing the form required by the comptroller; and (ii) obtaining the comptroller's approval of the change. (C) When considering whether to approve or disapprove a state agency's request for a certification change, the comptroller shall: (i) consider the agency's history of complying or not complying with this section's requirements for the agency's current certification; and (ii) determine the agency's capability to comply with this section's requirements for the agency's requested certification. (D) This subparagraph applies if the comptroller receives a state agency's request for a certification change not later than the 30th day before the start of the next fiscal year. If the comptroller approves the change, then the change is effective on the later of: (i) the first day of the fiscal year following the fiscal year during which the comptroller approves the change; or (ii) the date the state property accounting system receives a full and accurate reporting from the agency of its property balances as of the end of the fiscal year during which the comptroller approves the change. (E) This subparagraph applies if the comptroller receives a state agency's request for a certification change during the last 29 days of a fiscal year. If the comptroller approves the change, then the change is effective on the later of: (i) the first day of the second fiscal year following the fiscal year during which the comptroller receives the request; or (ii) the date the state property accounting system receives a full and accurate reporting from the agency of its property balances as of the end of the fiscal year following the fiscal year in which the comptroller receives the request. (4) Certification changes initiated by the comptroller. (A) The comptroller may change a state agency's certification from a reporting state agency to an internal state agency or vice versa anytime the comptroller determines the change is needed. (B) If the comptroller changes a state agency's certification under subparagraph (A) of this paragraph, then the change is effective on the date specified by the comptroller. (5) Criteria for certification as an internal state agency. A state agency may be an internal state agency only if: (A) the agency determines that it will use the state property accounting system as its own property accounting system; and (B) the agency agrees to maintain a perpetual inventory. (6) Criteria for certification as a reporting state agency. (A) A state agency is a reporting state agency if it: (i) is not exempt from this section; and (ii) is not an internal state agency. (B) A reporting state agency shall modify its personal property accounting system to comply with the comptroller's reporting requirements, as periodically amended. (C) A reporting state agency shall demonstrate to the comptroller's satisfaction that the agency has disaster recovery capability. (e) Physical inventories. (1) Frequency and timing of physical inventories. (A) Except as provided by subsection (n) of this section, a state agency shall conduct an annual physical inventory of the personal property and trust property in the agency's possession. The agency may choose the date of the inventory. (B) The comptroller encourages a state agency to conduct each year one or more supplemental physical inventories of the personal property and trust property in the agency's possession. (2) Requirements for annual physical inventories. (A) When a state agency conducts an annual physical inventory of the personal property and trust property in the agency's possession, the agency shall: (i) ensure that each property item is still within the agency's possession; (ii) determine whether the person who has custody of each property item as indicated on the agency's records still has custody of the item; and (iii) determine the condition of each property item. (B) A state agency may use any method for conducting an annual physical inventory that is acceptable to the comptroller. (C) If the results of a state agency's annual physical inventory vary from the records on the state property accounting system, then the agency shall immediately report the discrepancies to the comptroller through the system. The report must provide a reason for each discrepancy. (3) Reports to the comptroller about annual physical inventories. (A) The head of a state agency shall send a report to the comptroller about the agency's annual physical inventory. (B) The report must contain: (i) a copy of the results of the inventory; and (ii) a signed statement that: (I) provides the date the inventory was conducted; (II) identifies the individual who the comptroller may contact for information about the inventory; (III) describes the methods used to conduct the inventory; (IV) summarizes the values received from the inventory; and (V) contains the other information required by the comptroller. (C) Deadline for reports. The head of a state agency shall ensure that the comptroller receives a copy of the results of the agency's inventory and the signed statement not later than the earliest of: (i) the 45th day after the date the inventory is conducted; or (ii) the 20th day after the end of the fiscal year for which the inventory is conducted. (4) Requirements for supplemental physical inventories. (A) A state agency may use any method for conducting a supplemental physical inventory that is acceptable to the comptroller. Statistical sampling and dollar unit sampling techniques are acceptable if they are properly used and comply with the comptroller's requirements. (B) A state agency shall maintain in its records the results of each supplemental physical inventory. (C) If the results of a state agency's supplemental physical inventory vary from the records on the state property accounting system, then the agency should consider the immediate conducting of an annual physical inventory. (5) Loaned personal property. Personal property that a state agency has loaned to another state agency is the responsibility of the lending state agency for the purpose of this subsection. (6) Transferred personal property. Personal property, including reassignable personal property, that a state agency has transferred to another state agency is the responsibility of the transferring state agency until the transfer has been completed in accordance with the comptroller's requirements. (7) Missing, stolen, salvage, or surplus personal property. A state agency must include in a physical inventory the agency's missing, stolen, salvage, or surplus personal property until it has been deleted from the state property accounting system in accordance with this section. (f) Records and reporting. (1) Internal state agencies. (A) An internal state agency shall maintain a perpetual inventory. The agency shall record personal property and trust property on the state property accounting system at the time of acquisition. The information must be recorded in accordance with the comptroller's requirements. (B) The comptroller shall maintain an internal agency's property records on the state property accounting system. (2) Reporting state agencies. (A) A reporting state agency shall report information to the state property accounting system in accordance with the comptroller's schedules, procedures, and classification system. The comptroller may require a reporting state agency to submit information at any time. The comptroller shall notify reporting state agencies in writing about the required frequency of the agencies' reports. (B) A reporting state agency shall maintain its property records in the manner and format required by this section and the comptroller. The agency shall ensure that its property accounting system is always capable of providing the information required by the state property accounting system. (3) Group and unit tracking of personal property. (A) A state agency shall track personal property on a unit basis. (B) Possessions of the state other than personal property may be tracked on a group basis only if the requirements of subparagraphs (C) and (D) of this paragraph are satisfied. (C) A state agency may track possessions of the state on a group basis only if all the possessions in the group: (i) have the same characteristics; (ii) have the same purchase and in-service dates; (iii) have the same class code; (iv) are visually identifiable as logically belonging to the group; and (v) may be depreciated using the same methods. (D) Notwithstanding anything in this paragraph, possessions of the state that are purchased with debt financing by the Texas Public Finance Authority may be tracked on a group basis only if all the possessions in the group are included in the same lease supplement. (4) Missing, stolen, damaged, or destroyed personal property. (A) Upon receiving a report about stolen, damaged, or destroyed personal property from a head of agency under subsection (g)(1)(C) or (D) of this section or from a property manager under subsection (h)(2)(B) or (C) of this section, the comptroller shall forward necessary records about the property to the state auditor and the attorney general. (B) The attorney general may investigate and take appropriate legal action to recover the value of stolen, damaged, or destroyed personal property. The attorney general shall determine the value of the property to be recovered based on the market value of the property and the degree of responsibility of the person who was entrusted with the property. (C) A state agency may not delete missing personal property from the state property accounting system before three annual physical inventories have been conducted or three calendar years have elapsed since it was determined to be missing. (D) A state agency may delete missing, stolen, damaged, or destroyed personal property from the state property accounting system only in accordance with the comptroller's procedures. (g) Responsibilities of heads of state agencies. (1) Care, custody, and control of personal property. (A) The head of a state agency is responsible for the custody and care of personal property and trust property in the agency's possession. This responsibility does not end when a property manager is designated. (B) The head of a state agency is responsible for ensuring that the agency maintains adequate inventory controls on personal property and trust property. Upon request, the state auditor may advise and make recommendations to the agency about those controls. (C) If the head of a state agency has reasonable cause to believe that the agency's personal property or trust property is missing, damaged, or destroyed because of a state employee's negligence, then the head of agency shall file a report with the comptroller, the state auditor, and the attorney general. (i) A report to the comptroller must be made immediately and by entering the appropriate disposal code into the state property accounting system. (ii) A report to the state auditor must be made through a deletion request entered into the state property accounting system. A head of agency should transmit to the state auditor by facsimile the appropriate form within 24 hours after entering the deletion request. (iii) A report to the attorney general must include the appropriate form. The form must be transmitted to the attorney general by facsimile. The report must be made not later than the fifth working day after reasonable cause for the belief arises. (D) If the head of a state agency has reasonable cause to believe that the agency's personal property or trust property has been stolen, then the head of agency shall inform the comptroller, the state auditor, the attorney general, and law enforcement personnel. (i) A report to the comptroller must be made immediately and by entering the appropriate disposal code into the state property accounting system. (ii) A report to the state auditor must be made through a deletion request entered into the state property accounting system. A head of agency should transmit to the state auditor by facsimile the appropriate form and police report within 24 hours after entering the deletion request. (iii) A report to the attorney general must include the appropriate form. The form must be transmitted to the attorney general by facsimile. The report must be made not later than the fifth working day after reasonable cause for the belief arises. (iv) A report to law enforcement personnel must be made not later than the 48th hour after reasonable cause for the belief arises. (2) Designation, supervision, and training of property managers. (A) The head of a state agency shall: (i) designate a property manager for the agency; (ii) inform the comptroller of the designation by properly completing and submitting the form required by the comptroller; and (iii) ensure that the property manager receives training about this section and the state property accounting system. (B) The head of a state agency may designate more than one property manager for the agency only if the comptroller approves. (C) The head of a state agency may designate one or more alternate property managers for the agency. The head of agency shall inform the comptroller of the designation by properly completing and submitting the form required by the comptroller. (D) If a state agency's property manager or alternate property manager changes, then the head of the agency shall inform the comptroller of the change by properly completing and submitting the form required by the comptroller. (E) The head of a state agency shall ensure that the property manager for the agency properly carries out the property manager's duties as required by this section. (3) Providing receipts. The head of a state agency shall provide the receipt required by subsection (h)(4) of this section if the head of agency is entrusted with personal property or trust property. (4) Use of personal property or trust property. The head of a state agency may use personal property and trust property only for state purposes. (5) Change in the head of a state agency. (A) When the head of a state agency changes, the outgoing head of agency shall complete the form required by the comptroller and deliver the form to the incoming head of agency. (B) After verifying and signing the form, the incoming head of agency shall send copies of the form to the comptroller and the state auditor. (6) Liability. The head of a state agency is financially liable for the loss sustained by the state if the head of agency is entrusted with personal property or trust property and: (A) the property disappears because the head of agency fails to exercise reasonable care for its safekeeping; (B) the property deteriorates because the head of agency fails to exercise reasonable care to maintain and service it; or (C) the property is damaged or destroyed because of the head of agency's negligent or intentional wrongful act. (h) Responsibilities of property managers. (1) Determining the responsibilities of alternate property managers. The property manager of a state agency shall determine the responsibilities of the agency's alternate property managers. The property manager shall ensure that the alternate property managers properly fulfill their responsibilities. (2) Custody of personal property and trust property. (A) The property manager of a state agency is the custodian of all personal property and trust property possessed by the agency. (B) If a property manager has reasonable cause to believe that personal property or trust property is missing, damaged, or destroyed because of a state employee's negligence, then the property manager shall inform the comptroller, the state auditor, and the attorney general. A report to the comptroller must be made in the form and manner required by the comptroller. (i) A report to the comptroller must be made immediately and by entering the appropriate disposal code into the state property accounting system. (ii) A report to the state auditor must be made through a deletion request entered into the state property accounting system. A property manager should transmit to the state auditor by facsimile the appropriate form within 24 hours after entering the deletion request. (iii) A report to the attorney general must include the appropriate form. The form must be transmitted to the attorney general by facsimile. The report must be made not later than the fifth working day after reasonable cause for the belief arises. (C) If a property manager has reasonable cause to believe that the agency's personal property or trust property has been stolen, then the property manager shall inform the comptroller, the state auditor, the attorney general, and law enforcement personnel. (i) A report to the comptroller must be made immediately and by entering the appropriate disposal code into the state property accounting system. (ii) A report to the state auditor must be made through a deletion request entered into the state property accounting system. A property manager should transmit to the state auditor by facsimile the appropriate form and police report within 24 hours after entering the deletion request. (iii) A report to the attorney general must include the appropriate form. The form must be transmitted to the attorney general by facsimile. The report must be made not later than the fifth working day after reasonable cause for the belief arises. (iv) A report to law enforcement personnel must be made not later than the 48th hour after reasonable cause for the belief arises. (3) Maintaining records. The property manager of a state agency shall maintain the records required by the comptroller and this section. (4) Entrusting personal property or trust property to other persons. (A) A property manager may not entrust personal property or trust property to a person unless the person provides a signed, written, and dated receipt to the property manager. (B) The receipt must contain a statement similar to the following. "I understand that I am financially liable to the state for the disappearance of the personal property or trust property if I fail to exercise reasonable care for its safekeeping; the deterioration of the property if I fail to exercise reasonable care to maintain and service it; and the damage or destruction of the property if it occurs because of my negligent or intentional wrongful act. " (C) A property manager may not entrust personal property or trust property to a person if the property manager knows or reasonably should know that the person will use the property for other than state purposes. (5) Use of personal property and trust property. A property manager may use personal property and trust property only for state purposes. (6) Changes in property managers. (A) When a property manager changes, the outgoing property manager shall complete the form required by the comptroller and deliver the form to the incoming property manager. (B) After verifying and signing the form, the incoming property manager shall send copies of the form to the comptroller and the state auditor. (7) Liability. A property manager is financially liable for the loss sustained by the state if the property manager is entrusted with personal property or trust property and: (A) the property disappears because the property manager fails to exercise reasonable care for its safekeeping; (B) the property deteriorates because the property manager fails to exercise reasonable care to maintain and service it; or (C) the property is damaged or destroyed because of the property manager's negligent or intentional wrongful act. (i) Responsibilities of state employees. (1) Providing receipts. A state employee shall provide the receipt required by subsection (h)(4) of this section if the employee is entrusted with personal property or trust property. (2) Use of personal property and trust property. A state employee may use personal property and trust property only for state purposes. (3) Liability. A state employee is financially liable for the loss sustained by the state if the employee is entrusted with personal property or trust property and: (A) the property disappears because the employee fails to exercise reasonable care for its safekeeping; (B) the property deteriorates because the employee fails to exercise reasonable care to maintain and service it; or (C) the property is damaged or destroyed because of the employee's negligent or intentional wrongful act. (j) Valuation of personal property. (1) General provision. This subsection governs the valuation of personal property as reported to the state property accounting system. (2) Newly acquired personal property. The value of newly acquired personal property must be equal to the sum of: (A) the cost of the property; and (B) the costs required to place the property into service. (3) Donated personal property. (A) The value of personal property acquired through donation must be equal to its fair market value on the date of donation. (B) The fair market value of donated personal property must be determined through a reasonable market study. (C) A state agency that conducts a market study shall fully document the methods used to conduct the study. The agency shall keep the documentation in the agency's records in accordance with the comptroller's requirements. The agency shall send a copy of the documentation to the state property accounting system. (4) Personal property manufactured by the state. The value of personal property manufactured by the state must be equal to the total cost of labor and materials. Overhead costs may be included in the value if the manufacturing state agency determines it would be cost-effective. (5) Betterments and replacements of personal property. (A) A state agency shall determine the value of a betterment or replacement of personal property: (i) immediately following the completion of the betterment or replacement; or (ii) at the agency's earliest opportunity as deemed appropriate by the agency and the comptroller. (B) The value of a betterment of personal property must be expensed unless the betterment increases the value or useful life of the property by at least 25%. If a betterment is not expensed, then the value of the property must be increased on the state property accounting system in accordance with the comptroller's requirements. (C) The value of a replacement of personal property is equal to the cost of the replacement less the original cost of the part being replaced. The value of the replacement must be expensed unless the replacement materially increases the value or estimated useful life of the property. If a replacement is not expensed, then the value of the property must be increased on the state property accounting system in accordance with the comptroller's requirements. (D) If a state agency is required to increase the value of personal property on the state property accounting system because of a betterment or replacement, then the agency shall keep documentation in its records that supports the amount of the increase. The agency shall make the documentation available for inspection upon request. The agency may destroy the documentation only in accordance with the comptroller's requirements. (6) Debt-financed personal property. (A) In this paragraph, the total principal of debt-financed personal property is equal to the purchase price of the property plus the applicable service charge imposed by the Texas Public Finance Authority. (B) The acquisition cost of debt-financed personal property other than manufactured items must reflect the total principal of the property and the costs required to place the property into service. (C) The acquisition cost of debt-financed personal property that has been manufactured should be equal to the total cost of acquiring the property plus the cost of placing the property into service. This includes the principal, interest, finance charges, costs of issuance, and administrative fees. (7) Leased personal property. (A) Personal property that a state agency has leased under a capital lease must be valued in accordance with this paragraph. (B) Subject to subparagraph (C) of this paragraph, the cost of leased personal property is equal to the present value of the minimum lease payments plus the cost of placing the property into service. The cost of the property does not include any costs not paid by the agency. (C) The cost of leased personal property may not exceed the property's fair market value. (8) Trade-ins. If a state agency is authorized to trade personal property for other personal property, then the agency must report the trade to the state property accounting system in accordance with the comptroller's requirements. (9) Condition of personal property. When a state agency reports reassignable, surplus, or salvage personal property to the state property accounting system, the agency must include the condition of the property in the report. The agency should use the categories adopted by the comptroller when reporting the condition of personal property. (10) Previously depreciated personal property. If a state agency obtains ownership of personal property that was previously purchased with federal funds and depreciated for federal reporting purposes, then the agency shall value the property at its original cost. The previous depreciation has no effect on the value of the personal property for the purposes of the state property accounting system. (k) Accounting practices. (1) Depreciation of personal property. (A) The depreciable personal property of proprietary and fiduciary funds must be depreciated in accordance with generally accepted accounting principles. (B) An internal state agency shall depreciate personal property that is a general fixed asset by using the straight-line method. The depreciation must be recorded on the state property accounting system on a memorandum basis unless generally accepted accounting principles require depreciation. Regardless of how the depreciation is recorded, it shall be recorded at the end of each fiscal year unless the comptroller specifies otherwise. (C) The amount that personal property depreciates over a fiscal year by using the straight-line method is equal to the difference between the property's acquisition cost and its salvage value; divided by the estimated useful life of the property expressed in years. (D) A state agency shall use the state property accounting system's default value for the estimated useful life of personal property unless the agency documents a different value based on the agency's experience. This subparagraph applies only when a state agency is calculating depreciation for the purpose of recording it on the state property accounting system. (2) Transfer of personal property between funds. (A) If a state agency transfers personal property from a proprietary fund to a governmental fund, then a new cost basis must be established for the property in the governmental fund. The new cost basis must be based on the acquisition cost of the property as recorded in the proprietary fund less any accumulated depreciation earned on the property. There is no requirement for the agency to modify the estimated useful life of the property. (B) If a state agency transfers personal property from a governmental fund to a proprietary or fiduciary fund, then the acquisition cost of the property must be recorded in the proprietary or fiduciary fund. The acquisition cost as recorded in the proprietary or fiduciary fund must be equal to the acquisition cost as recorded in the governmental fund. The estimated useful life of the property must be adjusted to reflect the best estimate of useful life available to the proprietary or fiduciary fund. (C) If a state agency transfers personal property from a governmental fund to another governmental fund, then the acquisition cost of the property as recorded in the new fund must be the same as the cost recorded in the old fund. (3) Reporting and reconciliation of personal property inventory balances. (A) A state agency shall: (i) report to the state property accounting system general ledger information using generally accepted accounting principles; (ii) track beginning balances at the beginning of each year; and (iii) report additions, deletions, and adjustments in personal property throughout the year so that year end balances can be determined. (B) An internal state agency should reconcile its general ledger balances for personal property to the supporting financial detail in the state property accounting system. The agency should accomplish the reconciliation on a monthly basis at the month-end closing. All adjustments made during the reconciliation should be supported and documented. The agency may destroy the documentation only in accordance with the comptroller's requirements. (C) A reporting state agency should reconcile its corresponding balances to the detail reported to the state property accounting system on a quarterly basis. Adjustments should be entered not later than the 20th day after the end of the quarter. All adjustments should be supported and documented. The agency may destroy the documentation only in accordance with the comptroller's requirements. (l) Maintaining records. (1) Forms. A state agency shall use the forms prescribed by the comptroller when taking any action authorized or required by this section. The comptroller may adopt and modify forms as the comptroller deems necessary. (2) Loans of personal property. (A) A state agency that loans personal property to another state agency shall document the loan as required by the comptroller. (B) A state agency that loans personal property to another state agency does not suspend or eliminate its responsibilities toward the property under this section and applicable law. (3) Transfers of personal property. (A) A state agency that transfers personal property to another state agency shall comply with the procedures and requirements adopted by the comptroller. (B) A state agency that receives personal property from another state agency shall comply with the procedures and requirements adopted by the comptroller. (C) Personal property that is transferred from one state agency to another is in the possession of the transferring agency until the receiving agency properly enters its receipt of the property in the state property accounting system. (D) A state agency may not transfer property purchased through the master lease financing program administered by the Texas Public Finance Authority unless the authority provides advance approval of the transfer in accordance with the authority's requirements. (4) Reassignable personal property. (A) A state agency that has possession of reassignable personal property shall identify the property to the state property accounting system. The system shall then advertise the availability of the property to other state agencies. (B) A state agency that transfers reassignable personal property to another state agency and the state agency that receives the property shall comply with the comptroller's procedures for the transfer. (C) This subparagraph applies if a state agency transfers to at least two state agencies reassignable personal property that is tracked on a group basis on the state property accounting system. The transferring state agency shall identify to the system the property that is transferred to each state agency. Each receiving state agency shall record its receipt of the property on the state property accounting system in accordance with subsection (f) of this section. (5) Surplus and salvage personal property. (A) A state agency shall comply with applicable law and rules when transferring, selling, or disposing of its surplus or salvage personal property. (B) When a state agency determines that it possesses surplus or salvage personal property, the agency shall notify the state property accounting system in accordance with the comptroller's requirements. (C) The notification provided under subparagraph (B) of this paragraph constitutes official notice to the General Services Commission that the surplus or salvage personal property is available for sale or other disposition. (D) A state agency may delete surplus or salvage personal property from the state property accounting system only by requesting the comptroller's approval. An approval request must comply with the comptroller's procedures. (E) Surplus personal property that has not been reported to the state property accounting system must be added to the system before the property may be deleted from the system. (F) Salvage personal property shall be removed from the state property accounting system in accordance with the comptroller's requirements. (G) Each house of the legislature is exempt from the surplus property provisions of the State Purchasing and General Services Act, Article 9, if the rules and regulations of the administration committee of the house has adopted a system for disposing of the property. (H) Subparagraphs (A)-(F) of this paragraph do not apply to products and by- products of research, forestry, agriculture, livestock, and industrial enterprises that exceed the quantity required for consumption by the producing state agency if the agency has a continuing and adequate system of marketing research and sales. The deletion of those products and by-products from the state property accounting system must comply with the comptroller's requirements. (I) State eleemosynary institutions and institutions and agencies of higher learning are exempt from the provisions in the State Purchasing and General Services Act, Article 9, that relate to the disposition of surplus or salvage property. (m) Inventory control. (1) Marking of personal property. A state agency shall permanently mark each item of personal property in the agency's possession as property of the State of Texas. The marking is permanent for the purpose of this paragraph if the marking can be removed only through considerable or intentional means. The marking shall be highly visible so that conducting a physical inventory is facilitated. (2) Property inventory numbers. (A) A state agency shall assign a unique property inventory number to each item of personal property that is tracked on a unit basis. The number shall be printed on a label. The label shall be attached to the item in a highly visible location so that conducting a physical inventory is facilitated. (B) A property inventory number may not be reused, even if property has been deleted from the state property accounting system. (3) Responsibility for securing and tracking personal property. A state agency is responsible for ensuring that its personal property and trust property are tracked and secured in the manner that is most likely to prevent damage to and the theft, loss, or misuse of the property. (4) Locating personal property. A state agency must know where all of its personal property and trust property is located at all times. (n) Abolished state agencies. (1) Application of this subsection. This subsection applies to an abolished state agency only to the extent this section is consistent with the law that abolishes the agency. (2) Responsibilities of the head of an abolished state agency. (A) The head of an abolished state agency shall: (i) conduct a complete and accurate physical inventory of the agency's possessions in accordance with the comptroller's requirements; (ii) furnish a copy of the inventory to the General Services Commission not later than the effective date of the abolition; and (iii) transfer all personal property of the agency to the General Services Commission in accordance with the comptroller's requirements. (B) The physical inventory required by subparagraph (A)(i) of this paragraph is in addition to the annual physical inventory required by subsection (e) of this section. (3) Responsibilities of the General Services Commission. The General Services Commission shall care for the personal property transferred to the commission under paragraph (2) of this subsection until the commission distributes or sells the property in accordance with applicable law. (o) Real property. (1) Using the state property accounting system to track real property. A state agency may use the state property accounting system to track real property if the agency: (A) establishes its own coding and accounting structures; and (B) complies with the comptroller's requirements. (2) Submitting information to the General Land Office. A state agency may not use the state property accounting system to track real property instead of submitting information about the property to the General Land Office. (p) Access to the state property accounting system. An individual may have access to the state property accounting system only in accordance with the procedures and security limitations prescribed by the comptroller. (q) Consequences of violating this section. The comptroller may refuse to draw warrants or initiate electronic funds transfers on behalf of a state agency that fails to comply with this section. (r) Conflict with federal laws or regulations. If a federal law or regulation conflicts with this section, then the law or regulation prevails over this section to the extent necessary to avoid the conflict. (s) Transition. (1) Application of this subsection. This subsection applies to personal property of a state agency only if: (A) the agency was not required to report the property to the General Services Commission by the State Purchasing and General Services Act, Article 8; and (B) this section requires the agency to report the property to the state property accounting system. (2) Deadline for initial reporting of personal property. Notwithstanding anything in subsections (a)-(r) of this section, a state agency shall complete its initial reporting of personal property to the state property accounting system not later than August 31, 1994. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on June 29, 1994. TRD-9443221 Martin Cherry Chief, General Law Section Comptroller of Public Accounts Effective date: July 21, 1994 Proposal publication date: January 20, 1994 For further information, please call: (512) 463-4028 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 3, Income Assistance Services The Texas Department of Human Services (DHS) adopts amendments to sec.sec.3. 704, 3.902, and 3.1003, concerning types of resource and income exclusions and types of earned income deductions allowed in determining Aid to Families with Dependent Children (AFDC) and Food Stamp Program eligibility, in its Income Assistance Services rule chapter. The justification for the amendments is to comply with changes mandated in Public Laws 101-201, 101-425, 101-426, and 103-66. The amendments to sec.3.704 and sec.3.902 will function by exempting certain disability payments from income and resources in the AFDC program. The amendment to sec.3.1003 will function by increasing the excess shelter deduction from $207 to $231 per month used in determining eligibility for the Food Stamp Program. The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 31, which provides the department with the authority to administer public and financial assistance programs. The amendment is effective July 1, 1994, in compliance with federal requirements. Subchapter G. Resources 40 TAC sec.3.704 The amendment implements the Human Resources Code, sec.22.001 and sec.31.003. sec.3.704. Types. (a) (No change.) (b) Aid to Families with Dependent Children. Exclusions from resources in AFDC are as follows. (1) Burial plot. DHS exempts one burial plot for each household member. (2) Disability payments. DHS exempts disability payments resulting from Agent Orange Settlement Agreements or the Radiation Exposure Compensation Act. (3) Homestead. DHS exempts the usual residence and surrounding property which is not separated by property owned by others. (A) The exemption remains in effect if the surrounding property is separated from the home by public right of way, such as roads. (B) The home and surrounding property remain exempt when temporarily unoccupied for reasons of employment, training for future employment, illness, casualty, or natural disaster and the household intends to return. (4) Sale of a homestead. DHS counts the proceeds from the sale as an available resource. (5) Inaccessible resources. DHS exempts cash values of resources that are not legally available to the household. (6) Lump sum payments. DHS counts income tax refunds as resources asstipulated in 45 Code of Federal Regulations sec.233.20(a)(3)(iv)(E). (7) Earned income credits (EIC). EIC payments are exempt for the month the payment is received and for the following month. (8) Prepaid burial insurance. DHS exempts one prepaid burial insurance policy, prepaid funeral plan, or prepaid funeral agreement with a cash value of $1500 or less for each member of the certified group. (9) Personal possessions. DHS exempts personal possessions such as clothing, jewelry, furniture, livestock, and farm equipment, if used to meet personal needs essential for daily living. (10) Resources of an alien's sponsor. DHS determines the sponsor's countable resources in the same manner as the applicant's. DHS reduces the total value of the sponsor's resources by $1,500 and considers the remainder available to the alien. (11) Resources exempted by federal law. DHS exempts government payments by the Individual and Family Grant Program or the Small Business Administration provided to rebuild a home or replace personal possessions damaged in a disaster, if the household is subject to legal sanction if the funds are not used as intended. DHS exempts payments made under the following acts: (A) Alaska Native Claims Settlement Act (Public Law 92-203, as amended by Public Law 100-241); (B) Sac and Fox Indian Claims Agreement; (C) Grand River Band of Ottawa Indians; (D) Passamaquoddy Tribe, the Penobscot Nation, and the Houlton Band of Maliseet Indians received according to the Maine Indian Claims Settlement Act of 1980; (E) Confederated Tribes and Bands of the Yakima Indian National and the Apache Tribe of the Mescalero Reservation received from the Indian Claims Commission; (F) Seneca Nation Settlement Act of 1990 (Public Law 101-503); (G) DHS exempts payments from Indian lands held jointly with the tribe or land that can be sold only with approval of the Bureau of Indian Affairs; (H) DHS exempts funds distributed by the Secretary of the Interior, as stipulated in Public Law 98-64, sec.2 (relating to Tribal Trust Funds) and in Public Law 97-458, sec.4 (relating to Judgement Funds Granted due to a Claim Against the United States); (I) DHS exempts reimbursements from the Uniform Relocation Assistance and Real Properties Acquisition Policy Act of 1970; (J) DHS exempts payments or allowances made under any federal law for the purpose of energy assistance. (12) DHS exempts the value of one vehicle owned and used by the certified group for transportation if the equity is less than $1,500. If the equity exceeds $1,500, DHS counts the excess as a resource. DHS counts the equity of all other vehicles. (13) Reimbursements for repairing or replacing a lost or damaged resource which would not otherwise affect eligibility are exempt if the applicant uses the reimbursement for the intended purpose. (c) (No change.) (d) Food stamps. Exclusions from resources for food stamps are those stipulated in 7 Code of Federal Regulations, the United States Code, sec.2014(g) and (j), and Public Laws 101-426 and 101-201. 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 30, 1994. TRD-9443327 Nancy Murphy Section Manager, Media and Policy Services Texas Department of Human Services Effective date: July 1, 1994 For further information, please call: (512) 450-3765 Subchapter I. Income 40 TAC sec.3.902 The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 31, which provides the department with the authority to administer public and financial assistance programs. The amendment is effective July 1, 1994, in compliance with federal requirements. The amendment implements the Human Resources Code, sec.22.001 and sec.31.003. ) sec.3.902. Types. (a) (No change.) (b) Aid to families with dependent children. Exclusions from income for AFDC are: (1) disability payments. DHS exempts disability payments resulting from Agent Orange Settlement Agreements or the Radiation Exposure Compensation Act; (2) diverted income. DHS diverts income for all persons allowed in 45 Code of Federal Regulations sec.233.20(a)(3)(ii)(C); (3) Domestic Volunteer Service Act. DHS exempts payments received by volunteers for services performed in programs stipulated in the Domestic Volunteer Service Act of 1973, Title II (Public Law 93-113). DHS exempts payments made to applicants serving as VISTA volunteers under Title I; (4) earned income credits. DHS exempts this income in the 185%, 100%, and recognizable needs tests; (5) educational assistance. DHS exempts general education assistance payments as stipulated in 45 Code of Federal Regulations sec.233. 20(a)(3)(iv) and sec.233.20(a)(4)(ii)(d). DHS also exempts remaining amounts of educational assistance pursuant to 45 Code of Federal Regulations sec.233.20(a) (3)(vii); (6) energy assistance. DHS exempts home energy assistance as stipulated in 45 Code of Federal Regulations sec.233.53(a)-(c); (7) food stamp value; (8) foster care payments; (9) in-kind income. DHS exempts the value of unearned in-kind assistance; (10) job training allowances. DHS exempts payments from other agencies that do not duplicate assistance provided under the AFDC needs standard as stipulated in 45 Code of Federal Regulations sec.233.20(a)(3)(vii)(a)-(b). DHS also exempts unearned income payments from the Job Training Partnership Act (JTPA) of 1982 for AFDC children and JTPA payments of $375 or less per month for AFDC adults participating in the Work Experience Program, Limited Work Experience Program, or Summer Youth Program; (11) native and Indian claims. DHS exempts payments made under the Alaska Native Claims Settlement Act (Public Law 92-203, as amended by Public Law 100- 241), Seneca Nation Settlement Act of 1990 (Public Law 101-503), and funds distributed or held in trust by the Indian Claims Commission for members of Indian tribes under Public Laws 92-254; 94-540; 94-114, sec.6; 95-433; 96-420; 98-64, sec.2; and 93-134, sec.7 (as amended by Public Law 97.458, sec.4); (12) noneducational loans; (13) nutrition program assistance. DHS exempts the value of supplemental food assistance under the Child Nutrition Act of 1966 and special food services programs for children under the National School Lunch Act. DHS exempts benefits received under the Older Americans Act of 1965, Title VII, Nutrition Program for the Elderly; (14) relocation assistance benefits. DHS exempts benefits received under the Uniform Relocation Assistance and Real Property Acquisition Act, Title II; (15) SSI as stipulated in 45 Code of Federal Regulations sec.233.20(a)(3)(x); (16) third-party funds. DHS exempts money received and used for care and maintenance of a third-party beneficiary who is not a household member; (17) vendor payments. DHS does not count payments made directly to the applicant's creditor or person providing the service if the person or organization making the payments is outside the household; (18) children's earned income. DHS exempts this income if the child is a full- time student as defined by the school or a part-time student working less than 30 hours a week. There is no limit on the number of hours a full-time student can work; (19) government housing assistance. DHS exempts government rent or housing subsidies as stipulated in 45 Code of Federal Regulations sec.233.20(a) (3)(xii). (c) (No change.) (d) Food stamps. DHS excludes as income the types of income stipulated in Public Laws 101-201 and 101-425, and 7 Code of Federal Regulations sec.273.9(c) except for child support payments, educational assistance, and certain types of income of SSI recipients. DHS excludes educational assistance and income of SSI recipients a stipulated in United States Code, sec.2014, Part 5(d) and (e). DHS does not exclude any portion of child support payments. 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 30, 1994. TRD-9443328 Nancy Murphy Section Manager, Media and Policy Services Texas Department of Human Services Effective date: July 1, 1994 For further information, please call: (512) 450-3765 Subchapter J. Budgeting 40 TAC sec.3.1003 The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 33, which provides the department with the authority to administer public and nutritional assistance programs. The amendment is effective July 1, 1994, in compliance with federal requirements. The amendment implements the Human Resources Code, sec.22.001 and sec.31.002. sec.3.1003. Deductions. (a) (No change.) (b) Food Stamps. DHS allows deductions from income as stipulated in 7 Code of Federal Regulations sec.273.9(d) and in Public Law 103-66. Regarding a standard utility deduction, DHS allows a single deduction as specified in 7 Code of Federal Regulations sec.273.9(d)(6)(i)(B). Regarding a standard shelter deduction for homeless households, DHS allows the standard computed annually by the Food and Nutrition Service as specified in 7 Code of Federal Regulations sec.273.9(d)(5) (i). 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 30, 1994. TRD-9443329 Nancy Murphy Section Manager, Media and Policy Services Texas Department of Human Services Effective date: July 1, 1994 For further information, please call: (512) 450-3765