PROPOSED RULES Before an agency may permanently adopt a new or amended section or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before action is taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive action, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 4. AGRICULTURE Part I. Texas Department of Agriculture Chapter 1. General Procedures Subchapter E. Advisory Committees 4 TAC sec.sec.1.200-1.203 The Texas Department of Agriculture (the department) proposes new sec.sec.1. 200-1.203, concerning the continuation of the Egg Marketing Advisory Board, Pest Management Zone Administrative Committees and Texas-Israel Exchange Fund Board, in accordance with the provisions of Texas Civil Statutes, Article 6252-33 (Vernon Supplement 1994). The new sections prescribe the purposes and duties of committees created by statute to advise the department, the expiration date of each committee and the manner in which each committee will report to the agency. Dolores Alvarado Hibbs, chief administrative law judge, legal affairs, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rules. Ms. Hibbs also has determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be a reduction of expenditures by eliminating ineffective and unnecessary advisory committees. There will be no effect on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the rules as proposed. Comments on the proposal may be submitted to Dolores Alvarado Hibbs, Chief Administrative Law Judge, Legal Affairs, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register. The new sections are proposed under Texas Civil Statutes, Article 6252-33 (Vernon Supplement 1994), which require the Texas Department of Agriculture to adopt rules regarding its advisory committees. The Texas Agriculture Code, Chapter 132, Subchapter A, Chapter 74, Subchapter A, and Chapter 45 are affected by the proposal. sec.1.200. Scope and Purpose. This subchapter identifies advisory committees created by statute to advise the Texas Department of Agriculture and, in accordance with the provisions of Texas Civil Statutes, Article 6252-33 (Vernon Supplement 1994), prescribes the purposes and duties of such committees, the expiration date of each committee, and the manner in which each continuing committee will report to the agency. sec.1.201. Egg Marketing Advisory Board. (a) Purpose. The Egg Marketing Advisory Board is created pursuant to Texas Agriculture Code Annotated, sec.132.007. (b) Duties. The board is composed of the commissioner, an Extension Service representative appointed by the head of the Poultry Science Department at Texas A & M University, and nine persons appointed by the governor, including three persons who are producers, three persons who are retailers, and three persons who are dealers, wholesalers, brokers or processors. The commissioner and the appointed Extension Service representative serve as ex-officio members of the board. The commissioner shall serve as chairman of the board. The board shall meet at the call of the chairman. A member of the board must be a Texas resident. Members serve for staggered terms of six years and the governor shall fill any vacancy by appointment for the unexpired term. Members shall serve without pay, but are entitled to reimbursement for actual expenses incurred in attending to the work of the board, subject to the approval of the chairman. The board advises the department in matters relating to egg quality, inspection, and carton labeling to ensure that the eggs sold to Texas consumers meet or exceed standards of quality developed by the department. (c) Duration. The Egg Marketing Advisory Board is abolished on September 1, 1995, unless continued under the Texas Sunset Act, Texas Government Code, Chapter 325. sec.1.202. Pest Management Zone Administrative Committees. (a) Purpose. Pest Management Zone Administrative Committees for the following areas are created pursuant to Texas Agriculture Code, sec.74.003 (Vernon Supplement 1994) to advise the department in matters relating to boll weevil control. (1) The Lower Rio Grande Valley boll weevil pest management zone includes all lands in Cameron, Hidalgo, Starr, Willacy, Jim Hogg, Brooks, and Zapata counties and the southern part of Kenedy county encompassing that area below an east-west line through Katherine and Armstrong, Texas. (2) The Lower Coastal Bend and South Texas boll weevil pest management zone, Area 1, includes all lands in Aransas, Duval, Jim Wells, Kleberg, Nueces, San Patricio, and Webb counties, and South and East of Highway 59 in Bee and Live Oak counties. Area 2 of this zone includes all lands in Calhoun, Dimmit, Goliad, LaSalle, McMullen, Refugio, and Victoria counties and north and west of Highway 59 in Bee and Live Oak counties. One committee consisting of cotton producers from each county in Area 1 and Area 2 will advise the department in matters relating to boll weevil control. (3) The Upper Coastal Bend boll weevil pest management zone, Area 1, includes all lands in Jackson and Matagorda counties and that portion of Wharton county west of the Colorado River. Area 2 of this zone includes all lands in Austin, Brazoria, and Fort Bend counties and that portion of Wharton county east of the Colorado River. One committee consisting of cotton producers from each county in Area 1 and Area 2 will advise the department in matters relating to boll weevil control. (b) Duties. The Pest Management Zone Administrative Committees are composed of cotton producers representing each county in the zone in which cotton is produced, based on the amount of actual cotton acreage planted. The members are appointed by the commissioner after solicitation of names from recognized grower organizations in the zone. The committees meet at least twice a year, once prior to cotton stalk destruction and once mid-year before planting. The committees provide integral information on local weather and growing patterns and conditions, which ultimately aid in setting stalk destruction dates for the zone to aid in controlling boll weevil populations. The committee also encourages farmers in the counties within the pest management zones to comply with pest management laws. (c) Duration. The Pest Management Zone Administrative Committees are abolished on September 1, 1996, unless continued under the Texas Sunset Act, Texas Government Code, Chapter 325. sec.1.103. Texas-Israel Exchange Fund (TIE) Board. (a) Purpose. The Texas-Israel Exchange Fund (TIE) Board is created by Texas Agriculture Code Annotated, sec.45.006. (b) Duties. The TIE Board serves as a liaison to the corresponding Israeli board to encourage and support a program of mutual cooperation for solving problems shared by both regions relating to food and fiber production. In fulfilling its purposes, the TIE Board performs the following functions: (1) advises or ratifies the selection of grants to be administered by the department and advises the department on matters involving mutual assistance, trade, and business development between Texas and Israel; (2) advises or ratifies department grants, in cooperation with the corresponding Israeli board, to provide funding for projects to mutually benefit both regions; (3) consults with the corresponding Israeli board to efficiently address matters of mutual importance while avoiding duplication of effort; and (4) directly communicates with both the department and the corresponding Israeli body as follows: (A) cooperating closely with the corresponding Israeli body, reports to the department at regularly scheduled meetings, at least twice annually, on recommended priorities; and (B) makes an annual accounting of all money received, awarded, and expended during the year to the legislative committees responsible for agricultural issues; (C) Duration. Pursuant to Texas Agriculture Code, s45.006(i), the TIE Board is abolished on September 1, 2001, unless continued under the Texas Sunset Act, Texas Government Code, Chapter 325. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 27, 1994. TRD-9450165 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 463-7583 Chapter 24. Texas Agricultural Finance Authority: Farm and Ranch Finance Program 4 TAC sec.sec.24.1-24.16 The Board of Directors of the Texas Agricultural Finance Authority (TAFA), a public authority within the Texas Department of Agriculture, proposes new sec.sec.24.1-24.16, concerning the Farm and Ranch Finance Program. The new sections are proposed for the implementation and administration of the Farm and Ranch Finance Program pursuant to Texas Agriculture Code, Chapter 59. New ssec.24.1-24.5 state the authority and purpose of the program, provide definitions, describe the procedure for open records requests, and provide an address for communications with TAFA. New sec.sec.24.6-24.7 describe the Farm and Ranch Finance Program Fund and list eligible uses for loan proceeds. New ssec.24.8-24.10 list applicant requirements and provide procedures for filing and consideration of applications, including the contents of the application. New sec.sec.24.11 states the loan criteria that will be considered by TAFA. New sec.24.12 states the general terms and conditions of the TAFA's financial commitment, including fees, down payment, and interest rate. New sec.sec.24.13- 24. 15 provide conditions for the partial release of a portion of property purchased by a borrower under the program, describe conditions constituting default of a loan, and provide for default proceedings. New sec.24.16 provides authority to the TAFA staff to act as necessary for the collection, settlement and enforcement of financing approved under the program. Robert Kennedy, deputy assistant commissioner for finance and agribusiness development, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state government as a result of enforcing or administering the sections, as any costs of administering the program will be paid out of the income generated by the program. Mr. Kennedy also has determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing the sections will be the provision of financial assistance to borrowers to purchase farm or ranch land, and the efficient operation of the program. There will be no effect on small or large businesses. The anticipated economic cost to individuals who are required to comply with the rules is $50, which represents the non-refundable application fee. There may be some additional costs to individuals who are required to comply with the rules, to the extent that expenses are incurred in preparing an application to the program. However, these costs are expected to be minimal. Comments on the proposal may be submitted to Robert Kennedy, Deputy Assistant Commissioner for Finance and Agribusiness Development, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposed amendment in the Texas Register. The new sections are proposed under the authority of the Texas Agriculture Code (the Code), sec.59.022, which provides that TAFA may adopt rules governing various aspects of the program, the Code, sec.59.023, which states that TAFA has the power to adopt rules and procedures as necessary to carry out Chapter 59; and, Texas Government Code, sec.2001.004, which requires that state agencies adopt rules of practice stating the nature and requirements of all available formal and informal procedures. Texas Agriculture Code, Chapter 59, is affected by the proposed new rules. sec.24.1. Authority. Through action of the Texas Legislature and the approval of the Texas voters in the passage of a Constitutional Amendment on November 5, 1985, the Texas Agricultural Finance Authority is authorized to issue general obligation bonds or other indebtedness backed by the State of Texas to provide financial assistance to eligible applicants through direct loans, loans to lenders, or purchasing participation's in loans. sec.24.2. Purpose. The purpose of the Farm and Ranch Finance Program is to provide financing to eligible and creditworthy applicants for the purchase of land for agricultural use. It is not intended to compete with available credit sources nor to be a lender of last resort, but to complement and extend those available sources by sharing risk or reducing their exposure through sound and constructive credit practices. sec.24.3. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Act-Farm and Ranch Finance Program, Texas Agriculture Code, Chapter 59. Applicant-Any person who is applying for assistance under the Act and this chapter. Application-An application, including supporting documentation and schedules as required by the Authority for participation in this program. Authority-The Texas Agricultural Finance Authority acting through its Board of Directors. Board-The Veterans Land Board. Borrower-An Applicant approved for a loan by the Authority Board of Directors. Department-The Texas Department of Agriculture. Financial statements -Financial Statements submitted by the Applicant shall include a balance sheet, income statement, cash flow statement and owners equity reconciliation, if applicable. Fund-The Farm and Ranch Finance Program Fund. Gross income-The total income as identified and accumulated from the income tax returns filed by the applicant for the preceding three years prior to the application with such accumulation to include income generated from wages off farm or ranch labor, the sale of farm or ranch production or accumulated inventories, or any other income generated by the Applicant and identified on the tax return filed with the Internal Revenue Service. Interest rate-The interest rate on a Loan as determined and approved by the Authority and the lender on a case-by-case basis. Lender-A lender shall be a state or nationally chartered commercial lending institution, savings and loan association, credit union, any member of the Farm Credit System in the state, or any institution that the Authority determines is an experienced and sophisticated lender. Loan-A loan approved by the Authority in accordance with the requirements and criteria set forth in the Act and in this chapter. Program-The Farm and Ranch Finance Program. Staff-The staff of the Department performing work for the Authority. State-The State of Texas. sec.24.4. Examination of Records. Any party requesting the examination of records of the Program pursuant to the Open Records Act, Chapter 552, Texas Government Code shall indicate in writing the specific nature of the document to be viewed, and if photocopying is desired, the appropriate fee must accompany the request. sec.24.5. Written Communication with the Texas Agricultural Finance Authority. Applications and other written communications to the Authority should be addressed to the attention of the Texas Agricultural Finance Authority, in care of the Texas Department of Agriculture, P. O. Box 12847, Austin, Texas 78711. sec.24.6. Farm and Ranch Finance Program Fund.
    The Fund shall be established in the state treasury and may consist of bond proceeds, appropriations or transfers made to the Fund, moneys received from the operation of the Program, interest paid on money in the Fund and any other moneys received from other sources for the Fund. The Board or the Authority may provide for the establishment and maintenance of separate accounts within the Fund including the Farm and Ranch Administrative Expense Fund. sec.24.7. Eligible Uses of Loan Proceeds. (a) Eligible costs. Financing received under this Program may be used to finance costs incurred in connection with the purchase of farmland or ranchland, including refinancing of an outstanding obligation, mortgage, or advance used for those purposes. The land to be purchased may have existing improvements including a home, but the cost of the construction of new improvements on the property is not an eligible cost. (b) Ineligible costs. Use of financing received under this program for any costs other than those described in subsection (a) of this section shall be considered ineligible costs. A loan may be declared in default by the Authority if the borrower uses loan proceeds for ineligible costs. sec.24.8. Applicant Requirements.
      An applicant may submit an application to the Authority if the applicant meets the following requirements: (1) applicant is a United States citizen and a resident of the State of Texas; (2) applicant provides evidence of the fact that the applicant's proposed farm or ranch operation will be located within the State; (3) applicant provides evidence that he/she is a member of a household that has derived at least 25% of its gross income from a farm or ranch operation for the preceding three years; (4) applicant provides evidence that his/her net worth (computed in accordance with generally accepted accounting practices) together with the applicant's spouse and their dependents is less than $250,000; (5) applicant intends to purchase the farmland or ranchland for use by the Applicant and family for agricultural production as the applicant's primary occupation; (6) applicant is worthy of credit after giving due regard to the security value of the farmland or ranchland being acquired; (7) applicant can demonstrate the existence of or provision for financing for necessary equipment, operating costs and normal improvements, together with the ability to repay to repay all indebtedness of the Applicant and provide for a reasonable standard of living for the Applicant and family; (8) applicant is not related to any member of the Authority, the Board or the commissioner, the Deputy Commissioner, or any assistant commissioner of the Texas Department of Agriculture; and (9) applicant will agree to provide the lender and Authority annual reports of actual income and expense for the duration of the Loan. sec.24.9. Filing Requirements and Consideration of Application. (a) Application forms. An applicant seeking a loan from the Authority may use the application forms provided by either the Authority or the local participating lender. Applications must include the information necessary to identify eligibility for the program. (b) Submission of application. Applicants may be required to work with a lender to complete application documents before submission to the Authority. Staff will be available prior to submission of the application to assist applicants and lenders in determining program eligibility. (c) Staff review. Staff will review the application for completeness and will notify the applicant and/or the lender of any additional information required. When all required information has been received, staff will conduct a credit review, evaluate the technical and market feasibility of the operation and examine its benefits for Texas agriculture and economic growth in the State. (d) Authority board review. Staff will submit a credit memorandum to the Authority Board of Directors for each application received by the program. The Authority Board of Directors will approve or deny each application by a majority vote of a quorum of members. The Authority Board of Directors may conditionally approve the application by imposing additional requirements. (e) Notification of approval. Upon approval or conditional approval of the application the Authority will instruct staff to notify the applicant and the lender in writing identifying the terms and conditions of the loan. The Authority may set certain time limits regarding both the acceptance of a loan commitment and the closing of a loan by the applicant but in no event shall the time periods following notification exceed 30 days for acceptance and 90 days for closing unless approved in writing by the staff. The lender and/or the staff will prepare the written agreements and documents necessary to close the loan in accordance with the terms and conditions set forth in the notice of conditional approval. The Authority will send the lender and the applicant final notice of approval after review of the closing documents. The lender will disburse the loan according to the terms and conditions of the note and loan agreement. (f) Denial of application. If the application is denied by the Authority, the Authority will instruct staff to notify the applicant and lender in writing identifying the reasons for denial. Any applicant denied may reapply to the program without payment of an additional application fee. (g) Providing false information. An applicant who knowingly provides false information in an application shall be disqualified from obtaining a loan under the program and shall be liable to the Authority and the department for any expense incurred by the Authority or the department as a result of the falsity. If the falsity is discovered after approval of a loan, the falsity may constitute grounds for declaration of default of the loan, and the Authority shall be entitled to exercise all its rights under the loan documents. (h) Reporting to the Authority board. Staff shall report to the Authority Board of Directors at each board meeting the status of loans and current financial commitments of the Authority under the program. sec.24.10. Contents of the Application. (a) Required information. Applicants must complete an application as required by the lender assisting in origination of the loan. The application must contain adequate information to determine eligibility and creditworthiness. Such information must include but is not limited to: (1) the applicant's name and address; (2) a copy of the applicant's birth certificate or current valid driver's license; (3) the applicant's resume which identifies the agricultural experience of the applicant; (4) a completed personal history questionnaire; (5) two credit references and two unrelated personal references; (6) information and/or letters of commitment regarding other funding sources, if applicable; (7) disclosure of any and all business affiliations or family relationships of the applicant with members of the Board or Authority Board of Directors, employees of the department and the staff which could present a conflict of interest; and (8) any other information which the applicant or the Authority decides may be useful in the determination of the applicant's eligibility and/or creditworthiness. (b) Financial statement. Financial statements must be provided on the form and/or in the same format included in the application package. They should be typed or written in ink, dated (no more than three months old), and signed by the applicant and spouse, if applicable. Printed forms of other lending institutions will be accepted. A financial statement will be required from each person/entity who will become personally liable on the loan. (c) Business plan. A business plan for the applicant's proposed operation including the land acquisition, must be provided. It must provide a comprehensive overview of the proposed operation including pro forma operating statements, balance sheets and sources and uses of funds for the first three years of operation and must provide sufficient cash flow for the requested financing and all other indebtedness of the applicant. The assumptions on which the plan is based must be provided, including the interest rate used. (d) Tax returns. The applicant's most recent complete tax return including W-2 forms. (e) Farmland or ranchland appraisal. (1) An appraisal of the market value and income potential of the farmland or ranchland to be acquired with proceeds of the loan must be performed by a person who meets one of the following criteria: (A) membership in the American Society of Farm Managers and Rural Appraisers and designation as an Accredited Rural Appraiser (ARA); (B) membership in the American Society of Real Estate Appraisers and designation as Master of the Appraisal Institute (MAI); (C) membership in the Texas Society of Farm Managers and Rural Appraisers and active involvement in performing farmland or ranchland appraisal for at least three years preceding the date of the appraisal; or (D) staff appraiser for a Federal Land Bank Association. (2) A letter stating the appraiser's qualifications and experience must be submitted with the appraisal. (3) The Authority may require the applicant to obtain an additional appraisal from another appraiser when comparable sales do not reasonably reflect the value of the farmland or ranchland stated in the original appraisal. (f) Earnest money contract or option. The seller of the farmland or ranchland to be acquired and the applicant must enter either a binding earnest money contract or a purchase option contract. The earnest money contract or purchase option contract must contain all terms and conditions agreed to by the parties thereto. The purchase option contract shall include a statement that if the option is exercised, any amounts paid for the purchase of the option will be applied to the purchase price of the farmland or ranchland. sec.24.11. Criteria for Approval of a Loan. (a) Reasonable risks. There must be reasonable assurance, in the judgment of the Authority, that the applicant has the willingness and ability to repay the loan according to its terms. In making this judgment the Authority may consider the following: (1) the applicant's business plan and how sound and comprehensive it is; (2) projected cash flow of the applicant; (3) commitments from other sources for funds necessary for the operation such as seasonal working capital; (4) collateral, guaranties and/or insurance securing the loan; (5) the applicant's management ability, credit history and financial condition. (b) Eligibility and/or certification of lenders. Institutions desiring to originate and service loans as lenders and/or participate in loans as lenders must demonstrate the continuing ability to evaluate, perform and service the loan; make the necessary reports as identified in the rules of the program; and to collect the loan, if requested by the Authority, upon default. The lender must agree to exercise due diligence in the servicing, maintenance, review and evaluation of performance without regard to the existence of participation by the Authority or any other limitation of risk. sec.24.12. General Terms and Conditions of Authority's Financial Commitment. (a) The program will work in partnership with lenders who are familiar with making farmland or ranchland loans. Such partnership may include a joint funding of financing to eligible applicants in Texas. Such joint funding will be determined on a case-by-case basis but the Authority's portion will be no less than 25% of the total financing not to exceed the limitations defined in subsection (b) of this section. (b) The total loan amount must not exceed 95% of the appraised value of the farmland or ranchland, or cost, whichever is less. Appraised value is defined as either the market data approach or the income approach, whichever is applicable. (c) The maximum loan shall not exceed 95% of the appraised value, the purchase price of the farmland or ranchland or $150,000, whichever is lower and may include closing costs to be paid by applicant but cannot exceed the limitations of the program. (d) The terms of the loan will be negotiated by the applicant, lender and the authority on a case-by-case basis. (e) Fees. A non-refundable application fee of $50 will be required with each application presented to the Authority for consideration. In addition, an origination fee based on the term of the approved loan commitment, with respect to maturity and pricing of the loan commitment, will be charged. All fees will be the responsibility of the applicant and shall be remitted to the Authority. (f) Down payment and maximum loan amount. A loan under this chapter may not exceed $150,000, less the down payment required under this subsection. If the purchase price of land purchased with financial assistance under this chapter is $150,000 or less, the minimum down payment is equal to 5.0% of the purchase price. If the purchase price exceeds $150,000, the minimum down payment is an amount equal to the sum of 5.0% of the purchase price plus the amount equal to the difference between the purchase price and $150,000. (g) Interest rates on loans are subject to approval of the applicant, lender and the Authority. Interest rates approved by the Authority will be based upon rates established by the Authority from the funding sources available to the program. (h) Security. Loans must be secured by collateral of a type, amount and value which affords reasonable assurance of repayment when considered with other criteria and must include a first lien deed of trust on the property being financed. The total outstanding amount of the loan, plus all accrued and unpaid interest, will be due and payable upon the sale of any financed property. (i) Closing costs. All closing costs associated with the closing of an approved loan including the Authority's review of the closing documents by independent legal counsel shall be the liability of the borrower and may be paid from the total financing subject to the limitations defined in these rules. (j) Closing of the loan. The staff may attend the verification and signing of such closing documents at the time, date and location determined by the Authority and lender. The closing documents must include all those documents which are necessary for the protection of the Authority and the lender as determined by the legal counsel. (k) The loan will not be subject to any prepayment penalties by the lender or the Authority. (l) Reporting requirements. The borrower shall provide annual financial statements to the lender, with comparison to the expected progress in the business plan. The lender shall submit a copy of the financial statements to the Authority. The Authority may request other reports or documentation as necessary. The lender shall report in writing any non-compliance with or default of loan covenants to the Authority within 15 days of each noted occurrence. sec.24.13. Partial Release.
        The Authority may approve the release of a portion of the property purchased under the program from a lien (or may delegate the approval authority to the lender/servicer) under the following conditions: (1) the Authority (and/or lender/servicer) determines that the release will not adversely affect either the borrower's operational ability or ability to continue in the program; (2) the borrower agrees to comply with the conditions for release imposed by the Authority which may include conditions as to the amount and location of acreage to be released, and the application of any and or all of the proceeds of the sale to the loan. (3) the remaining loan amount does not exceed 95% of the lesser of the appraisal value or the current market value of the acreage remaining after the release. sec.24.14. Default by Borrower. A borrower is in default if one or more of the following conditions exists as determined by the lender and any other reasons that may be identified in the closing documents of the loan: (1) the borrower does not pay a principal and/or interest payment within 30 days of the date due; (2) the borrower breaches a material obligation in the note, loan agreement, or any instrument securing the loan; (3) the borrower fails personally to maintain the farmland or ranchland in active agricultural production for longer than one year; (4) the borrower leases any interest in the farmland or ranchland without prior written consent of the lender and the Authority; (5) the borrower sells or conveys outright any minerals or mineral interest associated with the farmland or ranchland without prior written consent of the lender or the authority; or (6) the borrower fails to provide the lender annual financial statements as required by these rules. sec.24.15. Default Proceedings. (a) Lender shall notify the Authority in writing within 15 days of default by borrower. Default by the borrower will be deemed to have occurred on the date of the lender's knowledge of default. Lender shall be deemed to have knowledge of a default in payment of money by a borrower on the 31st day after such payment is due. Lender shall be deemed to have knowledge of a default, other than a default in payment, on the date of the lender's actual knowledge of such default. (b) Lender and Authority may take reasonable steps to ensure fulfillment of the loan obligation. Lender and Authority may agree to an extension of time or any amount of payment of money, or agree to extend the period during which any other default may be cured. Such extension of time must be agreed upon by lender, borrower and Authority in writing. (c) Should lender and Authority determine that an extension of time will not cure the default, then lender must notify borrower in writing stating reasons for default and begin the foreclosure process as allowed by law. (d) Lender shall publish all notices required for the foreclosure sale and foreclose on the property at the appropriate time. sec.24.16. Administration of Financing. (a) Except as otherwise provided by state law, by these rules or by resolution of the Veterans Land Board or Board of the Authority, the staff, with the approval of the commissioner of agriculture, the deputy assistant commissioner of agriculture or the official of the department designated by the commissioner of agriculture as being responsible for the department's agricultural finance programs, shall have the authority to act on behalf of the Authority, without specific Authority Board approval, in regard to collection, settlement and enforcement of each and every financing approved by the Authority under this program. Such authority shall include, without limitation, the actions required to be taken by the Authority under any loan agreement, any participation agreement and any other agreement entered into by the Authority concerning a loan approved by the Authority under this program. (b) Nothing in this section shall prevent the staff or the commissioner of agriculture, deputy commissioner, or official of the department designated by the commissioner of agriculture from submitting any matter to the Authority Board for its consideration and approval. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 26, 1994. TRD-9450105 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 463-7583 TITLE 16. ECONOMIC REGULATION Part I. Railroad Commission of Texas Chapter 3. Oil and Gas Division Conservation Rules and Regulations 16 TAC sec.3.36 The Railroad Commission of Texas proposes an amendment to sec.3.36, which concerns oil, gas, or geothermal resource operation in hydrogen sulfide areas. The proposed amendments are identical to those adopted on an emergency basis on October 10, 1994. The emergency rule became effective October 10, 1994 for a period of 120 days. The commission finds that there exists a peril to public safety or welfare as a result of intentional releases of hydrogen sulfide during production, transportation, and handling of hydrocarbon fluids. Intentional releases of hydrogen sulfide are not within the purview of the current rule; therefore, the safety benefits provided by contingency plans are not enjoyed by the public. The commission finds that unless the rule is amended to expressly bring intentional releases of hydrogen sulfide under the provisions of sec.3.36, the public will be subject to unreasonable risk of harm from exposure to hydrogen sulfide. The proposed amendments will require that operators notify the commission and execute a contingency plan prior to an intentional release of a potentially hazardous volume of hydrogen sulfide. Rita E. Percival, systems analyst for the Oil and Gas Division, has determined that for the first five-year period the proposed rule revision will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering it. Jamie Nielson, assistant director, Oil and Gas Section, Legal Division, has determined that for each year of the first five years the rule is in effect, the public will benefit from decreased chances of exposure to the harmful effects of hydrogen sulphide. There will be no cost of compliance to the public. The cost of compliance with the proposed rule revision for small businesses will be no more than what is required under the current rule. The cost of compliance for individuals required to comply with the proposed rule revision will be no more than what is required under the current rule. Comments on the proposed amendment may be submitted to Jamie Nielson, Legal Division-Oil and Gas Section, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted by the commission 30 days after publication in the Texas Register and should reference Docket Number 20- 0206789. The commission proposes the amendment pursuant to Texas Natural Resources Code, sec.sec.81.051, 81.052, 85.042, 85.202, 86.041, and 86.042, which authorize the commission to adopt rules to govern and regulate persons and their operations to prevent injury to persons and property. The following are the codes that are affected by this rule: sec.3.36-Texas Natural Resources Code, sec.sec.81,051, 81.052, 85.042, 85.202, 86.041, and 86.042. sec.3.36. Oil, Gas, or Geothermal Resource Operation in Hydrogen Sulfide Areas. (a) Applicability. Each operator who conducts operations as described in paragraph (1) of this subsection shall be subject to this section and shall provide safeguards to protect the general public from the harmful effects of hydrogen sulfide. This section applies to both intentional and accidental releases of hydrogen sulfide. (1)-(2) (No change.) (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1)-(9) (No change.) (10) Contingency plan-A written document that shall provide an organized plan of action for alerting and protecting the public within an area of exposure prior to an intentional release, or
          following the accidental release of a potentially hazardous volume of hydrogen sulfide. (11)-(12) (No change.) (c) General provisions. (1)-(7) (No change.) (8) Control and equipment safety provision: Operators subject to this provision shall install safety devices and maintain them in an operable condition or shall establish safety procedures designed to prevent the undetected continuing escape of hydrogen sulfide. For intentional releases the gas must be flared unless permission to vent is obtained from the commission or its delegate. (9) Contingency plan provision. (A) (No change.) (B) The purpose of the contingency plan shall be to provide an organized plan of action for alerting and protecting the public prior to an intentional release, or
            following the accidental release of a potentially hazardous volume of hydrogen sulfide. (C) The contingency plan shall be activated prior to an intentional release, or
              immediately upon the detection of an accidental release of a potentially hazardous volume of hydrogen sulfide as such volume is defined by paragraphs (7)(A)-(C) of this subsection. (D)-(M) (No change.) (N) The Railroad Commission District Office shall be notified if the contingency plan is activated as follows: (i) 48 hours in advance of an intentional release; (ii) immediately in the case of an accidental release. (O)-(Q) (No change.) (10)-(13) (No change.) (14) Accident notification. Operators shall immediately notify the appropriate Railroad Commission District Office
                [railroad commission district office] of any accidental release of hydrogen sulfide gas of sufficient volume to present a hazard and of any hydrogen sulfide related accident. [Such notification shall be followed by a written report which shall be sent to such district office within ten days of the incident.] (d) Reports required. (1)-(2) (No change.) (3) Releases of, and accidents related to, hydrogen sulfide. The operator shall furnish a written report to the district office within ten days of any accidental release of hydrogen sulfide gas of sufficient volume to present a hazard and of any hydrogen sulfide related accident. The district office may require the operator to submit a written report within ten days of any intentional release of hydrogen sulfide. (e) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 27, 1994. TRD-9450162. Mary Ross McDonald Assistant Director, Legal Division-Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 463-6924 TITLE 22. EXAMINING BOARDS Part XVI. Texas State Board of Physical Therapy Examiners Chapter 329. Licensing Procedure 22 TAC sec.329.5, sec.329.6 The Texas State Board of Physical Therapy Examiners proposes amendments to sec.329.5, concerning Licensing Procedures for Foreign-Trained Applicants, and sec.329.6, Licensure of Persons Currently Licensed in Other States, the District of Columbia, or Territories of the United States. These amended sections will a establish a process that requires credentialing agencies to formally agree to follow the board's guidelines, and defines the term equivalent program for applicants seeking licensure in Texas who already hold a valid license in another state or territory. Nina Hurter, Acting Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rule is in effect there will be no effect on state or local government as a result of enforcing the rules. Ms. Hurter also has determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be consistent review and evaluation of an applicant's education credentials. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rule as proposed. Comments on the proposed rule may be submitted to Gerard Swain, PT Coordinator, Texas State Board of Physical Therapy Examiners, 3001 South Lamar Boulevard, Suite 101, Austin, Texas 78704. The amendments are proposed under the Physical Therapy Practice Act, Texas Civil Statutes, Article 4512e, which provide the Texas State Board of Physical Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act. Texas Civil Statutes, Article 4512e is affected by these amendments. sec.329.5. Licensing Procedures for Foreign-Trained Applicants. (a)-(f) (No change.) (g) Guidelines for board-approved education credentaling agencies. (1)-(9) (No change.) (10) The credentialing agency must submit to the board a board-approved form, properly signed and notarized, in which it agrees to use the board's guidelines to evaluate transcripts of applicants seeking licensure in Texas. sec.329.6. Licensure of Persons Currently Licensed in Other States, the District of Columbia, or Territories of the United States. (a) Qualifications for provisional licensure. (1)-(3) (No change.) (4) Determination of substantially equivalent. Determination by the board as to whether a state, the District of Columbia or a territory of the United States maintains professional standards substantially equivalent to those set forth by the Act, will be based on whether at the time the applicant was licensed in the state. (A) (No change.) (B) An applicant for a license as a physical therapist must present evidence satisfactory to the board that the applicant has completed an accredited program of equivalent program in physical therapy education. "Equivalent program" means that the applicant shall provide official documentation from a board-approved educational credentials review agency, certifying completion of a program equivalent to a Commission on Accreditation of Physical Therapy Education accredited program and completion of a minimum of 60 academic semester credits or the equivalent from an accredited institution of higher learning.
                  [the applicant's education credentials have been reviewed by a board-approved credentialing entity and meet Texas standards.] (C) (No change.) (5)-(9) (No change.) (b)-(c) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 26, 1994. TRD-9450103 Nina Hurter Acting Executive Director Texas State Board of Physical Therapy Examiners Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 443-8202 Part XIV. Texas Board of Veterinary Medical Examiners Chapter 577. General Administrative Duties Staff and Miscellaneous 22 TAC sec.577.15 (Editor's Note: The Texas Board of Veterinary Medical Examiners proposes for permanent adoption the amended sections it adopts on an emergency basis in this issue. The text of the amended sections is in the Emergency Rules section of this issue.) The Texas Board of Veterinary Medical Examiners proposes s577.15, concerning Fee Schedule. This amendment is necessitated by a reduction in the license renewal fee. This section is being simultaneously adopted on an emergency basis since the renewal period commences January 1, 1995, and the Board does not meet until February 8, 1995. The rule will set out the fees charged by the Board for examinations, license renewals, open records and mailing lists and labels. It will reduce the license renewal fee by $16. Ron Allen, Executive Director of the Board, states this will not have an adverse effect on large or small veterinary practices in that each licensee's renewal fees will be reduced by $16. Mr. Allen also has determined that the amendment will have no adverse effect on state or local government in the first five-year period. The public benefit will be reduced fees for veterinary license renewals in the State of Texas. Comments concerning this amendment must be received by December 1, 1994, and may be addressed to Ron Allen, Executive Director, Texas Board of Veterinary Medical Examiners, 1946 South IH-35, Suite 306, Austin, Texas 78704, (512) 447- 1183, FAX: (512) 442-3443. The amendment is proposed under Texas Civil Statutes, Article 8890, sec.7(a), which provide the Texas Board of Veterinary Medical Examiners with the authority to make, alter, or amend such rules and regulations as may be necessary or desirable to carry into effect the provisions of this Act. The amendment affects the Veterinary Licensing Act, sec.19(a), Article 8890, which mandates that the Board, by rule, establish reasonable and necessary fees to produce sufficient revenue to cover the costs of administering the Act. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 24, 1994. TRD-9450092 Ron Allen Executive Director Texas Board of Veterinary Medical Examiners Proposed date of adoption: February 8, 1995 For further information, please call: (512) 447-1183 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 1. General Administration Subchapter A. Rules of Practice and Procedure General Procedural Provisions 28 TAC sec.1.59 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Insurance or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department of Insurance proposes the repeal of s1.59, concerning the prerequisites to adoption, repealing, or amending rules. The proposed repeal is necessary because the provisions set forth in sec.1.59 have been superseded and replaced with newer, more specific provisions for rulemaking in sec. s1.201- 1.208. Provisions of sec.sec.1.201-1.208 concerning rule making procedures are designed to provide an orderly and efficient process for consideration and adoption of rules under the Government Code, Chapter 2001, Subchapter B, and under the Insurance Code, Articles 5.96 and 5.97. D. J. Powers, general counsel and chief clerk for the department, has determined that for each year of the first five years the repeal is in effect, there will be no fiscal impact on state or local government as a result of enforcing or administering the repeal. Mr. Powers also has determined that there will be no effect on local employment or the local economy. Mr. Powers also has determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of administration and enforcement of the repeal is the full implementation of regulatory revisions of the Administrative Code relating to departmental rulemaking provisions. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal must be submitted in writing within 30 days after publication of the proposal in the Texas Register to the Office of the Chief Clerk, P.O. Box 149104, MC 113-2A, Austin, Texas 78714-9104. A request for public hearing on the proposed repeal should be submitted separately to the Office of the Chief Clerk. The repeal is proposed pursuant to the Insurance Code, Article 1.03A and Article 1.04C. Article 1.03A authorizes the commissioner of insurance to promulgate and adopt rules and regulations for the conduct and execution of the duties and functions of the department. Article 1.04C requires the commissioner to develop and implement policies that provide the public with a reasonable opportunity to appear before the commissioner and to speak on any issue under the jurisdiction of the commissioner. The proposed repeal affects regulation pursuant to the following statutes: Government Code, Chapter 2001; Insurance Code, Articles 5.96 and 5.97. sec.1.59. Prerequisites to Adopting, Repealing, or Amending Rules. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 31, 1994. TRD-9450237 D. J. Powers Chief Clerk and General Counsel Texas Department of Insurance Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 463-6327 TITLE 34. PUBLIC FINANCE Part I. Comptroller of Public Accounts Chapter 5. Funds Management (Fiscal Affairs) Claims Processing-Payroll 34 TAC sec.5.47 The Comptroller of Public Accounts proposes new sec.5.47, concerning deductions for payments to credit unions. The new section is necessary to implement and operate the payroll deduction for state employees to make payments to their share or deposit accounts at participating credit unions. Mike Reissig, chief revenue estimator, has determined that for the first five- year period the rule will be in effect there will be no significant revenue impact on the state or local government. Mr. Reissig also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be in providing new information regarding state employee deductions for payments to credit unions. There will be no significant fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule. Comments on the proposal may be submitted to Stephanie Muller, Director, Systems Development, P.O. Box 13528, Austin, Texas 78711. The new section is proposed under the Texas Civil Statutes, Article 6813g, which authorizes the comptroller to adopt rules relating to the implementation and operation of the credit union payroll deduction. The new section implements Texas Civil Statutes, Article 6813g. sec.5.47. Deductions for Payments to Credit Unions. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Comptroller-The comptroller of public accounts for the State of Texas. (2) Credit union-A state credit union, an out-of-state credit union, or a federal credit union. (3) Electronic funds transfer-A payment made electronically instead of by warrant or check. The term includes a payment made through an automated clearinghouse, by bank wire, or by federal wire. (4) Employer-A state agency that employs one or more state employees. (5) Federal credit union-A credit union organized under the Federal Credit Union Act. (6) Holiday-A state or national holiday as specified by the General Appropriations Act or Texas Government Code, ssec.662.001-662.010. (7) 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. (8) Institution of higher education-Has the meaning assigned by the Education Code, sec.61.003. (9) May not-A prohibition. The term does not mean "might not" or its equivalents. (10) Out-of-state credit union-A credit union organized under the laws of a state other than Texas if the credit union is authorized under the Texas Credit Union Act to do business in this state. (11) Participating credit union-A credit union that the comptroller has certified according to this section. (12) Payee identification number-The 14-digit number that the comptroller assigns to each direct recipient of a payment made by the comptroller for the State of Texas. (13) Salary or wages-Base salary or wages, longevity pay, or hazardous duty pay. (14) State agency-A department, commission, council, board, office, agency, or other entity of Texas state government, including an institution of higher education. (15) State credit union-A voluntary, cooperative, nonprofit financial institution that is authorized under the Texas Credit Union Act to do business in this state for the purposes of: (A) encouraging thrift among its members; (B) creating a source of credit at fair and reasonable rates of interest; (C) providing an opportunity for its members to use and control their own money to improve their economic and social condition; and (D) conducting any other business, engaging in any other activity, and providing any other service that may be of benefit to its members subject to the Texas Credit Union Act and rules adopted under that law. (16) State employee-An employee of a Texas state agency. The term includes an elected or appointed official, a part-time employee, an hourly employee, a temporary employee, an employee who is not covered by the Position Classification Act, and a combination of the preceding. The term excludes an independent contractor and an employee of an independent contractor. (17) USPS-The uniform statewide payroll/personnel system. (18) Workday-A calendar day other than Saturday, Sunday, or a holiday. (b) Deductions. (1) References in this section. A reference in this section to a deduction without further qualification or explanation is a reference only to a deduction from a state employee's salary or wages to make a payment to a participating credit union. (2) Authorization of deductions. (A) A state employee may authorize not more than three monthly deductions from the employee's salary or wages. However, a state employee may not authorize more than one monthly deduction to any particular participating credit union. (B) A state employee may authorize a deduction only if the employee: (i) properly completes an authorization form; and (ii) submits the form to the participating credit union to which the deducted amounts will be paid. (C) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee authorizing an incorrect amount of a deduction. (D) An authorization form is not properly completed for purposes of subparagraph (B)(i) of this paragraph unless the form states the amount of administrative fees the employee completing the form must pay under this section. The amount must be stated on the form before the employee signs it. (3) Change in the amount of a deduction. (A) At any time, a state employee may authorize a change in the amount to be deducted from the employee's salary or wages. (B) A state employee may authorize a change in the amount of a deduction only if the employee: (i) properly completes an authorization form; and (ii) submits the form to the effected participating credit union. (C) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee changing the amount of a deduction. (D) An authorization form is not properly completed for purposes of subparagraph (B)(i) of this paragraph unless the form states the amount of administrative fees the employee completing the form must pay under this section. The amount must be stated on the form before the employee signs it. (4) Sufficiency of salary or wages to support a deduction. (A) A state employee is solely responsible for ensuring that the employee's salary or wages are sufficient to support a deduction. (B) If a state employee's salary or wages are sufficient to support only part of a deduction, then no part of the deduction may be made. If a state employee has authorized more than one deduction and the employee's salary or wages are insufficient to support all the deductions, then none of the deductions may be made. (C) The amount that could not be deducted from a state employee's salary or wages because of subparagraph (B) of this paragraph may not be made up by deducting the amount from subsequent payments of salary or wages to the employee. (5) Timing of deductions. (A) Except as provided in subparagraph (B) of this paragraph, a deduction must be made from the salary or wages that are paid on the first working day of a month. (B) If a state employee does not receive a payment of salary or wages on the first working day of a month, then the employer of the employee may designate the payment of salary or wages from which a deduction will be made. A deduction may be made only once each month. (6) Cancellation of deductions. (A) A state employee may cancel a deduction at any time. A cancellation is effective only if the employee properly completes an authorization form and submits the form to the effected participating credit union or the employee's employer. (B) This subparagraph applies only if a state employee cancels a deduction by submitting an authorization form to the employee's employer and if the employer submits monthly detail reports directly to participating credit unions. (i) Except as provided in clause (ii) of this subparagraph, the employer shall include a copy of the form with the next monthly detail report that the employer sends to the effected participating credit union. (ii) If the next monthly detail report will not be sent before the tenth workday after the day on which the form becomes effective, then the employer shall mail or hand deliver the copy of the form to the credit union not later than that workday. (C) This subparagraph applies only if a state employee cancels a deduction by submitting an authorization form to the employee's employer and if the comptroller submits monthly detail reports to participating credit unions on the employer's behalf. The employer shall mail or hand deliver a copy of the form to the credit union not later than the tenth workday after the day on which the form becomes effective. (D) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee canceling a deduction. (7) Interagency transfers of state employees. A state employee who transfers from one state agency to a second state agency may be treated by the second state agency as if the employee has not yet authorized any deductions. (c) Effective dates of authorization forms. (1) Effective date of authorization forms that request new deductions. This paragraph applies only to a state employee's authorization form that requests a new deduction. The employer of the employee may decide when the first deduction from the employee's salary or wages will occur. However, the deduction must begin not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form. (2) Effective date of authorization forms that request changes in deductions. This paragraph applies only to a state employee's authorization form that requests a change to a deduction. The employer of the employee may decide when the change will take effect. However, the change must take effect not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form. (3) Effective date of authorization forms that request cancellations of deductions. This paragraph applies only to a state employee's authorization form that requests the cancellation of a deduction. The employer of the employee may decide when the cancellation will take effect. However, the cancellation must take effect not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form. (4) Copies of authorization forms. (A) A participating credit union is solely responsible for making a copy of an authorization form before the credit union submits the form to a state agency. (B) A state employee is solely responsible for making a copy of an authorization form before the employee submits the form to a participating credit union or state agency. (d) Return of authorization forms. (1) Mandatory return. A state agency shall return an authorization form to the participating credit union or state employee that submitted the form if it: (A) is incomplete, contains erroneous data, or is otherwise insufficient and the insufficiency makes it impossible for the agency to cancel, establish, or change the deduction according to the form; or (B) is for an individual who is not employed by the agency. (2) Discretionary return. A state agency may return an authorization form to the participating credit union or state employee that submitted the form if the form is a copy or facsimile. (e) Requirements for the content and format of authorization forms. (1) Prohibition against distributing or providing authorization forms. A participating credit union may not distribute or provide an authorization form to a state employee until the credit union has received the comptroller's written approval of the form. (2) Requirement to produce authorization forms. As a condition for retaining its certification, a participating credit union must produce an authorization form that complies with the comptroller's requirements and this section. The credit union must produce the form within a reasonable time after receiving its certification from the comptroller. (3) Restrictions on approval of authorization forms by the comptroller. The comptroller may not approve the authorization form of a participating credit union unless: (A) the form is at least 8 1/2 inches wide; (B) the form is at least 11 inches long; (C) the form has a blank space for insertion of the amount of administrative fees the employee completing the form must pay under this section; and (D) the form complies with the comptroller's other requirements for format and substance. (4) Revisions of authorization forms. A participating credit union shall revise an authorization form upon request from the comptroller. The credit union may not distribute or otherwise make available a revised form to a state employee until the credit union has received the comptroller's written approval of the form. (f) Requirements for certifying and decertifying credit unions. (1) Request for certification. The comptroller may not certify a credit union unless the comptroller receives a written request for certification from an individual who is authorized by the credit union to make the request. (2) Requirements for requests for certification. The comptroller may not certify a credit union unless its request for certification includes: (A) the credit union's complete name; (B) the street address of the credit union's main branch; (C) the mailing address of the credit union's main branch, if different from the street address; (D) the full name, title, telephone number, facsimile telephone number, and mailing address of the credit union's primary contact; (E) the credit union's payee identification number; and (F) the other information that the comptroller deems necessary. (3) Electronic funds transfers. The comptroller may not certify a credit union unless: (A) it submits to the comptroller a request for deducted amounts to be paid by the comptroller through electronic funds transfers under rules and procedures adopted by the comptroller; (B) it submits to each institution of higher education that will be paying deducted amounts directly to the credit union a request for those amounts to be paid through electronic funds transfers; and (C) all those requests are approved. (4) Notifications. (A) The comptroller shall mail a notice to a credit union about the comptroller's approval or disapproval of the credit union's request for certification. The notice must be mailed not later than the 30th day after the comptroller receives the request if the request is complete in all respects. (B) The comptroller shall maintain a list of participating credit unions. The comptroller shall periodically circulate the list to all state agencies and furnish a copy of the list to a state agency upon request. (5) Effective date of certification. (A) General effective date. Except as provided in subparagraph (B) of this paragraph, the first deduction to a participating credit union may be made from salary or wages paid on the first workday of the second month following the month in which the comptroller certifies the credit union. (B) Exception. No deduction to a participating credit union may be made from salary or wages paid before February 1, 1995. (6) Termination of certification. (A) A participating credit union may terminate its participation in the deduction program authorized by this section only by terminating its certification. (B) A participating credit union may terminate its certification by providing written notice of termination to the comptroller. However, the credit union may not provide that notice before the credit union has provided written notice of termination to each state employee from whose salary or wages a deduction to the credit union is occurring. (C) A participating credit union's termination of its certification is effective beginning with the salary or wages paid on the first workday of the third month following the month in which the comptroller receives the credit union's proper notice of termination. (g) Payments of deducted amounts. (1) Payments by the comptroller through electronic funds transfers. (A) If feasible, the comptroller shall pay deducted amounts to a participating credit union by electronic funds transfer. (B) If the comptroller pays deducted amounts to a participating credit union by electronic funds transfer, then the comptroller may: (i) make one transfer to the credit union and require it to distribute the transferred funds to state employees' accounts according to subsection (h) of this section; or (ii) make one transfer to the credit union account of each state employee. (2) Payments through warrants issued by the comptroller. (A) If it is infeasible for the comptroller to pay deducted amounts to a participating credit union by electronic funds transfer, then the comptroller shall: (i) pay the amounts by warrant; (ii) make the warrant payable to the credit union; (iii) require the credit union to distribute the deducted amounts to state employees' accounts according to subsection (h) of this section; and (iv) make the warrant available for pick up by the state agency whose employees' deducted amounts are being paid by the warrant. (B) A state agency shall hand deliver or use an overnight delivery service to deliver a warrant picked up under subparagraph (A) of this paragraph to the payee of the warrant. (i) If the warrant relates to salary or wages that are paid on the first workday of a month, then the agency shall: (I) release the warrant to an overnight delivery service not later than the second workday of the month for delivery to the payee of the warrant; or (II) hand deliver the warrant to the payee of the warrant not later than the third workday of the month. (ii) If the warrant relates to salary or wages that are paid on a day other than the first workday of a month, then the agency shall: (I) release the warrant to an overnight delivery service not later than the second workday after the agency receives the warrant for delivery to the payee of the warrant; or (II) hand deliver the warrant to the payee of the warrant not later than the third workday after the agency receives the warrant. (3) Payments by institutions of higher education. (A) This paragraph applies only to deductions from salaries or wages that the comptroller does not pay directly to state employees of institutions of higher education. (B) If feasible, an institution of higher education shall pay deducted amounts to a participating credit union by electronic funds transfer. (C) If an institution of higher education pays deducted amounts to a participating credit union by electronic funds transfer, then the institution may: (i) make one transfer to the credit union and require it to distribute the transferred funds to state employees' accounts according to subsection (h) of this section; or (ii) make one transfer to the credit union account of each state employee. (D) If it is infeasible for an institution of higher education to pay deducted amounts to a participating credit union by electronic funds transfer, then the institution shall: (i) pay the amounts by check; (ii) make the check payable to the credit union; and (iii) require the credit union to distribute the deducted amounts to state employees' accounts according to subsection (h) of this section. (E) An institution of higher education shall hand deliver or use an overnight delivery service to deliver a check issued under subparagraph (D) of this paragraph to the payee of the check. (i) If the check relates to salary or wages that are paid on the first workday of a month, then the institution shall: (I) release the check to an overnight delivery service not later than the second workday of the month for delivery to the payee of the check; or (II) hand deliver the check to the payee of the check not later than the third workday of the month. (ii) If the check relates to salary or wages that are paid on a day other than the first workday of a month, then the institution shall: (I) release the check to an overnight delivery service not later than the second workday after the date printed on the check for delivery to the payee of the check; or (II) hand deliver the check to the payee of the check not later than the third workday after the date printed on the check. (h) Distributions of deducted amounts. (1) Applicability of this subsection. This subsection applies to deducted amounts only if they are paid to a participating credit union under subsection (g)(1)(B)(i), (2), (3)(C)(i), or (3)(D) of this section. (2) Requirement. A participating credit union shall distribute the amount deducted from a state employee's salary or wages to the proper account of the employee at the credit union. (3) Deadline for distributions. (A) This subparagraph applies only if a participating credit union receives a payment of deducted amounts through an electronic funds transfer. The credit union shall distribute them according to paragraph (2) of this subsection not later than the first workday after the credit union receives the detail report for the deducted amounts. (B) This subparagraph applies only if a participating credit union receives a payment of deducted amounts through a warrant or check. The credit union shall distribute them according to paragraph (2) of this subsection not later than the first workday after the credit union receives the warrant or check. (4) Distribution of interest earned. This paragraph applies only to the interest that accrues while an employee's deducted amounts are in a credit union account awaiting distribution to the employee's account at the credit union. The interest shall be paid to the employee's account unless the credit union determines the payment would violate federal or state law or an agreement between the credit union and the employee. (i) Charging administrative fees to cover costs incurred to make deductions. (1) Requirement. (A) If a state employee's salary or wages are paid through a warrant issued or an electronic funds transfer initiated by the comptroller, then the employee from whose salary or wages a deduction is made shall pay an administrative fee to cover the cost of making the deduction. (B) If a state employee's salary or wages are paid through a check issued or an electronic funds transfer initiated by an institution of higher education and the institution's payroll costs are reimbursed from the state treasury, then the institution may determine whether the employee must pay an administrative fee to cover the cost of making the deduction (C) An administrative fee shall be paid through payroll deduction. (2) Determination by the comptroller of the amount of the fee. (A) The comptroller shall determine the amount of the administrative fee paid by a state employee covered by paragraph (1)(A) of this subsection. (B) The comptroller shall periodically recalculate the fee to ensure that the amount of the fee equals the cost of making the deduction. The comptroller shall notify each state agency and participating credit union whenever the comptroller calculates or recalculates the fee. (C) A state agency that receives a notification from the comptroller under subparagraph (B) of this paragraph shall inform each agency employee who has authorized a deduction about the calculation or recalculation of the fee. (3) Determination by an institution of higher education of the amount of the fee. (A) An institution of higher education shall determine the amount of the administrative fee, if any, to be paid by a state employee covered by paragraph (1)(B) of this subsection. (B) The institution shall periodically recalculate the fee to ensure that the amount of the fee equals the cost of making the deduction. Except as otherwise provided in this subparagraph, the institution shall notify each participating credit union and employee of the institution whenever the institution calculates or recalculates the fee. The institution is not required to notify an employee who has not authorized a deduction or a participating credit union to which no employee of the institution has authorized a currently-effective deduction. (4) Payment of the administrative fees. The total amount of administrative fees that a state agency deducts from its state employees' salary and wages shall be paid to the agency. (j) Refunding deducted amounts to employers. (1) Authorization of refunds. The payment of a state employee's deducted amounts to a participating credit union may be refunded to the employee's employer if: (A) they exceed the amount that should have been paid to the credit union; or (B) they have been withdrawn from the employee's account at the credit union according to subsection (k)(4)(C) of this section . (2) Method for accomplishing refunds. If a refund from a participating credit union is authorized by paragraph (1) of this subsection, then the refund shall be accomplished by: (A) the employer of the state employee whose deducted amounts are being refunded subtracting the amount of the refund from a subsequent payment of deducted amounts to the credit union; or (B) the credit union issuing a check to the employer in the amount of the refund, if authorized by paragraph (3) of this subsection. (3) Paying refunds by check. A participating credit union may issue a check to an employer only if it submits to the credit union a written request for the refund to be made by check. (4) Deadline for paying refunds by check. If a participating credit union is authorized by paragraph (3) of this subsection to make a refund to an employer by check, then the credit union shall ensure that the employer receives the check not later than the 30th calendar day after the date on which the credit union receives the agency's written request for the refund. (k) Responsibilities of participating credit unions. (1) Notification to the comptroller. A participating credit union shall notify the comptroller in writing immediately after a change occurs to: (A) the credit union's name; (B) the street address of the credit union's main branch; (C) the mailing address of the credit union's main branch, if different from the street address; (D) the full name, title, telephone number, facsimile telephone number, or mailing address of the credit union's primary contact; or (E) the credit union's routing number or bank account number. (2) Primary contact. The individual that a credit union designates as its primary contact must represent the credit union for the purposes of: (A) communicating with the comptroller, including receiving and responding to correspondence from the comptroller; (B) disseminating information, including information about the requirements of this section, to representatives of the credit union; and (C) communicating with state agencies about payment reconciliation and refunds. (3) Payment reconciliation and discrepancies. (A) A participating credit union shall reconcile the detail report provided by a state agency under subsection (l) of this section with the deducted amounts paid to the credit union on behalf of or by the agency under subsection (g) of this section. (B) A participating credit union shall report all discrepancies between a detail report provided by a state agency and the actual amount of deductions received from or on behalf of the agency. The credit union shall provide its report to the state agency that submitted or on whose behalf the comptroller submitted the detail report. The credit union must ensure that its report is received not later than the 60th calendar day after the day on which the detail report was mailed, hand delivered, or released, whichever applies. If the 60th calendar day is not a workday, then the first workday following the 60th calendar day is the deadline. (4) Canceled payments of salary or wages. (A) If a state agency notifies a credit union that the agency has canceled a payment of salary or wages to a state employee and if the credit union receives the notice before it distributes deducted amounts to the employee's account, then the credit union may not make the distribution. (B) If a credit union's distribution of deducted amounts is prohibited by subparagraph (A) of this paragraph, then the state agency that paid them to the credit union shall obtain a refund of them according to subsection (j)(2)(A) or (B) of this section. (C) If a state agency notifies a credit union that the agency has canceled a payment of salary or wages to a state employee and if the credit union receives the notice after it distributes deducted amounts to the employee's account, then the credit union shall withdraw the amounts from the account unless: (i) the credit union determines the withdrawal would violate federal or state law; or (ii) the amount of funds in the account is insufficient for withdrawal of the full amount. (5) Return of magnetic tapes and cartridges. A participating credit union shall return a magnetic tape or cartridge to a state agency not later than the 30th day after the credit union received the tape or cartridge from the agency. (6) Submission of detail reports. A participating credit union that wants a monthly or additional detail report to be submitted to an entity other than the credit union must notify the comptroller in writing. A state agency is not required to submit the report to the entity before the agency has received notification from the comptroller that the report must be submitted to the entity. (l) Responsibilities of state agencies. (1) Authorization forms. A state agency: (A) may accept an authorization form only if it complies with this section; and (B) is not required to accept an authorization form that contains an obvious alteration without the state employee's written consent to the alteration. (2) Monthly detail reports to participating credit unions. (A) A state agency shall submit a monthly detail report to each participating credit union that received or should have received a payment of amounts deducted from the salary or wages of at least one of the agency's state employees. If the participating credit union has notified the comptroller in writing that the monthly detail reports should be submitted to an entity other than the credit union, then the reports shall be submitted to that entity. (B) If a state agency uses USPS and submits its monthly detail reports electronically, then the comptroller shall submit those reports on behalf of the agency. The requirements of this subsection that apply to the submission of those reports by state agencies also apply to the comptroller's submission of the reports. (C) A monthly detail report may cover only the deductions from salary or wages that are paid on the first workday of the month. Deducted amounts that were paid by electronic funds transfer directly to the credit union accounts of state employees may not be included in the report. (D) A state agency shall hand deliver or use an overnight delivery service to deliver a monthly detail report. (i) If the agency hand delivers the report, then the agency shall ensure that the report is received not later than the third workday of the month. (ii) If the agency uses an overnight delivery service, then the agency shall release the report to the service not later than the second workday of the month. (E) A monthly detail report to a participating credit union for a particular month must include: (i) the name and social security number of each state employee from whose salary or wages deducted amounts were paid to the credit union for the month; and (ii) the amount of deductions from each state employee's salary or wages that were paid to the credit union for the month. (F) A state agency shall submit its monthly detail reports in the format required by the comptroller. (G) A state agency shall notify a participating credit union about the agency's cancellation of a payment of salary or wages to a state employee. The notification must be by facsimile and must be provided not later than the day the agency processes the cancellation. This subparagraph applies only if: (i) the payment is canceled after the agency has hand delivered to the credit union or released to an overnight delivery service a monthly detail report; and (ii) the deductions covered by the report include deductions from the canceled payment of salary or wages. (3) Additional detail reports to participating credit unions. (A) A state agency shall submit an additional detail report to each participating credit union that received or should have received a payment of amounts deducted from the salary or wages of at least one of the agency's state employees. If the participating credit union has notified the comptroller in writing that the additional detail reports should be submitted to an entity other than the credit union, then the reports shall be submitted to that entity. (B) If a state agency uses USPS and submits its additional detail reports electronically, then the comptroller shall submit those reports on behalf of the agency. The requirements of this subsection that apply to the submission of those reports by state agencies also apply to the comptroller's submission of the reports. (C) An additional detail report may cover only the deductions from salary or wages that are paid on a day other than the first workday of the month. Deducted amounts that were paid by electronic funds transfer directly to the credit union accounts of state employees may not be included in the report. (D) This subparagraph applies only to an additional detail report that covers deducted amounts which are paid by electronic funds transfer to a participating credit union. A state agency shall hand deliver or use an overnight delivery service to deliver the report. (i) If the agency hand delivers the report, then the agency shall ensure that the report is received not later than the third workday after the deducted amounts are paid to the credit union. (ii) If the agency uses an overnight delivery service, then the agency shall release the report to the service not later than the second workday after the deducted amounts are paid to the credit union. (E) This subparagraph applies only to an additional detail report that covers deducted amounts which are paid by warrant or check to a participating credit union. The report shall accompany the warrant or check when it is mailed or otherwise delivered to the credit union. (F) An additional detail report to a participating credit union for a particular month must include: (i) the name and social security number of each state employee from whose salary or wages deducted amounts were paid to the credit union for the month; and (ii) the amount of deductions from each state employee's salary or wages that were paid to the credit union for the month. (G) A state agency shall submit its additional detail reports in the format required by the comptroller. (H) A state agency shall notify a participating credit union about the agency's cancellation of a payment of salary or wages to a state employee. The notification must be by facsimile and must be provided not later than the day the agency processes the cancellation. This subparagraph applies only if: (i) the payment is canceled after the agency has hand delivered to the credit union or released to an overnight delivery service an additional detail report; and (ii) the deductions covered by the report include deductions from the canceled payment of salary or wages. (4) Payment discrepancies. A state agency that receives a report of discrepancies from a participating credit union shall: (A) investigate the discrepancies; and (B) notify the credit union of the action to be taken to eliminate the discrepancies. (m) Responsibilities of the comptroller. The comptroller shall notify all state agencies whenever the comptroller receives written notification from a participating credit union that monthly or additional detail reports should be submitted to an entity other than the credit union. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 31, 1994. TRD-9450223 Martin Cherry Chief, General Law Comptroller of Public Accounts Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 463-4028 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part III. Texas Youth Commission Chapter 85. Admission and Placement Commitment and Reception 37 TAC sec.sec.85.3, 85.5, 85.7 The Texas Youth Commission (TYC) proposes amendments to ssec.85.3, 85.5, and 85.7, concerning admission process, assessment/evaluation, and mentally retarded youth. The amendments will allow the new diagnostic intake unit at Evins Regional Juvenile Center in Edinburg, Texas to perform intake functions for youth served by South Region with the exception of all females and youth under a determinate sentence and youth likely to be classified as Type A violent offenders. John Franks, Director of Fiscal Affairs, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Franks also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be more efficient use of the TYC facility in South Texas. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The amendments are proposed under the Human Resources Code, sec.61.071, which provides the Texas Youth Commission with the authority to examine and make a study of each child committed to it as soon as possible after commitment. The proposed rules implement the Human Resource Code, sec.61.034. sec.85.3. Admission Process. (a) Policy. Intake activities, including receipt of the youth from the committing county and orienting the youth to new surroundings, are performed by Texas Youth Commission (TYC) diagnostic intake units,
                    statewide reception center (SRC) at Brownwood and Evins Regional Juvenile Center (ERJC) diagnostic unit at Edinburg. (b) Rules. (1) The diagnostic intake units serve different youth and counties and they operate on different schedules. (A) The ERJC Diagnostic Unit in Edinburg, Texas receives youth each Tuesday between the hours of 8:00 a.m. and 5:00 p.m. The unit does not serve females or male youth who are under a determinate sentence or are likely to be classified as type A violent offenders. Such youth are served by the statewide reception center. The ERJC unit serves the following counties: Aransas, Jim Hogg, Nueces, Zapata, Bee, Jim Wells, Refugio, Brooks, Kenedy, San Patricio, Cameron, Kleberg, Starr, Duval, Live Oak, Webb, Hidalgo, McMullen, Willacy. (B)
                      [(1)] The statewide reception center in Brownwood, Texas receives youth committed to TYC five days per week, between 8:00 a.m. and 5:00 p.m. Youth may be received after 5:00 p.m. only if prior arrangements are made. The reception center serves all counties not served by the ERJC unit, all females, all sentenced offenders, and all youth likely to be classified as type A violent offenders. (2) Youth are allowed to have a limited number of personal possessions while at the diagnostic units.
                        [reception center.] Personal items beyond basic necessities are inventoried and returned to the county transporter. The transporter is asked to sign a receipt for items returned to his care. Items a youth is allowed to keep are inventoried and a receipt issued to the transporter. (3) (No change.) (4) The statewide reception center assigns
                          each youth [is assigned] an official TYC registration number. (5)-(8) (No change.) (9) In addition to assessment and placement activities, counseling is provided at both sites. Academic education is provided at the statewide reception center.
                            [In addition to assessment and placement activities, the statewide reception center provides a program including recreation, education and counseling.] (10) Intake
                              [Reception] staff identif[ies] y
                                the home parole officer according to the agency assignment system based on zipcode area and county. The staff forward to the home parole officer, within five working days of admission, the following: (A)-(D) (No change.) (11) Reception staff or regional transporters
                                  transport youth to their initial placements and notif[ies]y
                                    the families, the region parole officer, committing court, prosecuting attorney, chief probation officer and others as needed of the placement location. sec.85.5. Assessment/Evaluation. (a) Policy. The Texas Youth Commission (TYC) youth assessment process includes summarizing admission information, conducting diagnostic evaluations, identifying classification, and developing an initial placement category recommendation by the classification panel at the statewide reception center or at Evins Regional Juvenile Center
                                      . The youth assessment process is completed within two weeks of receipt of the youth [by TYC] at statewide reception center or within one week of receipt of youth at Evins Regional Juvenile Center Diagnostic Unit. (b) Rules. Intake
                                        staff at the diagnostic units
                                          [statewide reception center] conduct the following routine evaluations: (1)-(7) (No change.) (8) physical and dental examinations; [(within six months prior to placement in a halfway house);] (9)-(11) (No change.) (12) psychiatric interview of youth sentenced or youth classified as
                                            [committed for murder, capital murder, and voluntary manslaughter] type A violent offenders
                                              [offenses] and other youth as referred by the professional staff; and (13) assessment of behavior while at the facility
                                                [reception center]. sec.85.7. Mentally Retarded Youth. (a) (No change.) (b) Rules. (1) (No change.) (2) If a youth at a TYC diagnostic intake unit
                                                  [the statewide reception center (SRC)] is suspected to be mentally retarded and a
                                                    [an SRC] psychologist or (diagnostic supervisor at ERJC)
                                                      assesses the youth as potentially mentally retarded, the psychologist or (diagnostic supervisor at ERJC)
                                                        refers the youth to the committing county for a diagnostic evaluation. Psychologists or (diagnostic supervisor at ERJC)
                                                          refers a youth to the committing county if: (A)-(C) (No change.) (3) While at any placement other than the TYC diagnostic units
                                                            , [the SRC] TYC staff may refer a youth to a local Texas Department of Mental Health and Mental Retardation (TDMHMR) diagnostic evaluation team for an assessment. (4) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 27, 1994. TRD-9450149 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 483-5244 Placement Planning 37 TAC sec.85.25 The Texas Youth Commission (TYC) proposes an amendment to sec.85.25, regarding minimum length of stay. The amendment provides that youth who have not completed an established minimum length of stay and are reclassified as violent offenders for an assault on TYC staff and assigned a minimum length of stay, will complete the length of stay requirements consecutively, thus extending their time in the facility. John Franks, Director of Fiscal Affairs, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Franks also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be fewer assaults on TYC staff. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The amendment is proposed under the Human Resources Code, sec.61.071, which provides the Texas Youth Commission with the authority to examine and make a study of each child committed to it according to rules established by the commission. The proposed rule implements the Human Resource Code, sec.61.034. sec.85.25. Minimum Length of Stay. (a) (No change.) (b) Rules. (1) Minimum Length of Stay. (A)-(I) (No change.) (J) Youth given a disciplinary assigned minimum stay complete up to six months to run consecutive to
                                                              [concurrent] with any other minimum length of stay. (2) Creditable Time. (A) For a youth, except a sentenced offender or a youth subject to subparagraph (E) of this paragraph
                                                                , whose classifying offense was found at the most recent due process hearing: (i)-(iii) (No change.) (B) For a youth, except a sentenced offender or a youth subject to subparagraph (E) of this paragraph
                                                                  , whose classifying offense was found at an earlier due process hearing: (i)-(ii) (No change.) (C)-(D) (No change.) (E) For a youth who has not yet completed an established minimum length of stay and is reclassified as a violent offender for an assault on TYC staff: (i) the minimum length of stay as a violent offender is counted from the date the original minimum length of stay is completed; (ii) after the count begins, time spent on furlough or in detention or jail counts toward meeting the minimum length of stay requirement; (iii) time spent as an escapee from a placement assigned by TYC does not count toward meeting the minimum length of stay. (3) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 27, 1994. TRD-9450152 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 483-5244 Chapter 91. Discipline and Control Disciplinary Practices 37 TAC sec.91.9, sec.91.11 The Texas Youth Commission (TYC) proposes amendments to s91.9 and sec.91. 11, concerning parole revocation consequence and disciplinary transfer/assigned minimum length of stay consequences. The amendments allow youth to be assigned a minimum length of stay and be transferred to another program as consequence of assault on a TYC staff member. Currently only one or the other consequence may occur. John Franks, Director of Fiscal Affairs, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Franks also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be a reduction in assaults on staff. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The amendments are proposed under the Human Resources Code, sec.61.034, which provides the Texas Youth Commission with the authority to make rules appropriate to the proper accomplishment of its functions. The proposed rules implement the Human Resource Code, sec.61.034. sec.91.9. Parole Revocation Consequence. (a) (No change.) (b) Rules. (1) (No change.) (2) Criteria and Classification. (A) Parole is revoked when it is shown in a level I hearing that a youth has: (i)-(iii) (No change.) (iv) following the youth's disciplinary level II hearing
                                                                    [transfer] and prior to the completion of a medium restriction program: (I) committed a major rule violation causing substantial bodily injury; or (II)-(III) (No change.) (B)-(C) (No change.) (3) Disposition. (A)-(B) (No change.) [(C) Specific training school placements are the responsibility of the statewide reception center. All other placements, including Evins Regional Juvenile Center, are the responsibility of centralized placement.] (C)
                                                                      [(D)] If a youth is on parole from another state and is being supervised by Texas Youth Commission (TYC) under agreement with the other state, a parole revocation hearing is held by TYC and the youth returned to the sending state, coordinated by the interstate compact administrator and general counsel. (D)
                                                                        [(E)] If a TYC parolee commits an offense in another state, the return of such youth is coordinated by the interstate compact administrator and the general counsel. A parole revocation hearing is coordinated by and held at the request of the assigned parole officer. sec.91.11. Disciplinary Transfer/Assigned Minimum Length of Stay Consequence. (a) Policy. A youth may, for disciplinary reasons, be transferred to an appropriate placement and/
                                                                          or assigned a minimum length of stay [in the current placement] except that a youth on parole shall not be transferred into a placement of high or maximum restriction. Disciplinary transfer and assignment of a minimum length of stay are considered major consequences and require a level II hearing. (b) Rules. (1) (No change.) (2) Criteria. A youth may be transferred or assigned a minimum length of stay if it is found at a level II hearing that the youth has committed: (A)-(B) (No change.) (C) escape from a high restriction facility operated by TYC staff; (D)
                                                                            [(C)] any major rule violation and has previously been classified for a high risk offense; (E)
                                                                              [(D)] any major rule violation causing substantial bodily injury; (F)
                                                                                [(E)] the sum of two or more major rule violations within 30 days at the most recent permanent placement and any subsequent temporary placement; or (G)
                                                                                  [(F)] the sum of three or more major rule violations at the most recent permanent placement and any subsequent temporary placement. (3) Disposition. (A) If criteria are met, a youth may be: (i) transferred to a placement of equal or more restriction than the youth's most recent permanent placement; and/
                                                                                    or (ii) [retained in the current placement and] assigned a minimum length of stay. (B) (No change.) [(C) Specific training school placements are the responsibility of the statewide reception center. All other placements, including Evins Regional Juvenile Center, are the responsibility of centralized placement.] (4) Assigned Minimum Length of Stay. (A) At a level II hearing, a youth's primary service worker may request that the youth be assigned a specific minimum length of stay and/or
                                                                                      [rather than] transferred to another program. (B)-(C) (No change.) (5) Completing Assigned Minimum Length of Stay. (A)
                                                                                        [(D)]) A youth assigned a minimum length of stay may
                                                                                          remain[s] in the current program or be transferred and remain in the new placement
                                                                                            until the assigned
                                                                                              length of stay and other program completion criteria are completed. (B) The institutional superintendent or the regional director of the location where the youth is placed to complete the assigned minimum length of stay may reduce the assigned stay based on the youth's behavior and progress toward ICP objectives. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 27, 1994. TRD-9450150 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 483-5244 Due Process Hearings Procedures 37 TAC sec.91.33 The Texas Youth Commission (TYC) proposes an amendment to sec.91.33, concerning, Level II hearing procedure. The amendment allows youth to be assigned a minimum length of stay and be transferred to another program as consequence of assault on a TYC staff member. Currently only one or the other consequence may occur. John Franks, Director of Fiscal Affairs, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Franks also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be a reduction in assaults on staff. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The amendment is proposed under the Human Resources Code, sec.61.034, which provides the Texas Youth Commission with the authority to make rules appropriate to the proper accomplishment of its functions. The proposed rule implements the Human Resource Code, sec.61.034. sec.91.33. Level II Hearing Procedure. (a) (No change.) (b) Rules. (1)-(16) (No change.) (17) After announcing his findings of fact, the hearing manager shall proceed to disposition to determine whether the action proposed by staff is appropriate under TYC policy. (A) (No change.) (B) A hearing manager's decision to assign a minimum length of stay (with or without a transfer)
                                                                                                is final subject to approval by the executive director or designee. If, subsequent to the assignment of a minimum length of stay, the executive director disapproves the assignment, neither the assignment nor a transfer may then occur. (18)-(23) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 27, 1994. TRD-9450151 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 483-5244 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part XVI. Council on Sex Offender Treatment Chapter 511. Criminal Background Check Security 40 TAC sec.sec.511.1-511.4 The Council on Sex Offender Treatment proposes new sec. s511.1-511.4, concerning the security of the criminal background check process for sex offender treatment providers. The new rules are added to provide a confidential security process for information providers submit to the Council on Sex Offender Treatment in order to conduct criminal background checks. Eliza May, executive director, Council on Sex Offender Treatment, has determined that for the first five years the rules are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rules. Ms. May also has determined that the for each year the rules are in effect the public benefit anticipated as a result of enforcing the rules will provide confidentiality and security on the information submitted by the providers. There will be no cost to small businesses. There is no anticipated economic costs to persons who are required to comply with the rules as proposed. A public hearing is scheduled on December 9, 1994 from 10:00 a.m.-11:00 a.m. in the Central Services Building, 1711 San Jacinto, Room 402, Austin, Texas. Comments on the proposal may be submitted to Eliza May, Council on Sex Offender Treatment, P.O. Box 12546, Austin, Texas 78701. The new rules are proposed under Texas Civil Statutes, Article 4413(51), sec.13 and sec.15, which provide the Council on Sex Offender Treatment with the authority to establish and maintain a registry, develop procedures for criminal background checks and destruction of criminal history records. Texas Civil Statutes, Article 4413(51) and the Code of Criminal Procedure, Article 42.12 is cross-reference to statute. sec.511.1. Access to Criminal History Records. The Council is authorized to obtain information about the conviction or deferred adjudication that relates to an applicant of the Registry and maintained by the Department of Public Safety or the Federal Bureau of Investigation. The Council may obtain criminal a history record information from any law enforcement agency. The criminal history record information received under this section is for the exclusive use of the Council and is privileged and confidential. The criminal history record information may not be released or otherwise disclosed to any person or agency except on court order or with the consent of the applicant. sec.511.2. Records. All other records of the Council that are not made confidential by other law are open to inspection by the public during regular office hours. The contents of the criminal background check on each provider are not public records and are confidential under lock and key security. Unless expressed in writing by the Chairperson of the Council, the Executive Director and the Fiscal Officer of the CSOT are the only staff authorized to have daily access to the criminal history records. These records will be maintained in separate files and not in the Registered Sex Offender Treatment Provider files. sec.511.3. Destruction of Criminal History Records. The Council will destroy adjudication information relating to a person after the Council makes a decision on the eligibility of the applicant. The Council will destroy adjudication information 12 months after the date of the Council's decision on the applicant's eligibility. The Council will shred the information provided by the Texas Department of Public Safety, the Federal Bureau of Investigation or any other law enforcement agency, and the submitted applicant's finger print card. sec.511.4. Frequency of Criminal Background Check. The Council will conduct a Criminal Background Check on providers every three years, beginning September 1994. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 27, 1994. TRD-9450141 Eliza May Executive Director Council on Sex Offender Treatment Earliest possible date of adoption: December 5, 1994 For further information, please call: (512) 463-2323 Part XIX. Texas Department of Protective and Regulatory Services Chapter 700. Child Protective Services Subchapter E. Intake, Investigation, and Assessment 40 TAC sec.sec.700.507, 700.509, 700.516, 700.519, 700.520 The Texas Department of Protective and Regulatory Services (TDPRS) proposes amendments to sec.sec.700.507, 700.509, 700.516, and 700.519, and proposes new sec.700.520, concerning intake, investigation, and assessment, in the department's child protective services chapter. The purposes of the amendments and new section are to implement an amendment to the Human Resources Code enacted by the 73rd Texas Legislature, to implement a change in the Office of Child-Care Licensing's (CCL's) Minimum Standards for Child-Placing Agencies, and to make other minor changes in light of TDPRS's current practices. More specifically, the new section identifies the parties subject to criminal background checks during investigations. And the amendments add a reference to such criminal background checks; simplify PSFC's policies for purchasing medical, psychological, and psychiatric examinations during investigations of child abuse or neglect; authorize alleged perpetrators to contact TDPRS's Office of the Ombudsman at the end of administrative reviews of investigation findings; and increase (from 15 hours to 20) the minimum amount of training that investigation workers must receive annually to comply with CCL's new Minimum Standards for Child-Placing Agencies. Jerry Abel, chief fiscal officer, has determined that for the first five-year period the proposal will be in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the proposal. Mr. Abel also has determined that for each year of the first five years the proposal is in effect the public benefit anticipated as a result of enforcing the proposal will be to improve the protection of children from abuse and neglect by identifying the parties subject to criminal background checks during investigations of child abuse and neglect and by making several minor additional changes in the department's policies for investigating and assessing reports of child abuse and neglect. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposal. Questions about the content of the proposal may be directed to Janet Luft at (512) 706-5442 in TDPRS's Protective Services for Families and Children department. Written comments on the proposal may be submitted to Nancy Murphy, Agency Liaison, Media and Policy Services-069, Texas Department of Protective and Regulatory Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register . The amendments and new section are proposed under the Human Resources Code, Title 2, Chapter 41, which authorizes the department to enforce laws for the protection of children. The amendments and new section are also proposed under the Texas Family Code, Title 2, Chapter 34, which authorizes the department to provide services to alleviate the effects of child abuse and neglect. The amendments and new sections are further proposed under Texas Civil Statutes, Article 4413 (503), historical note (Vernon Supplement 1993), 72nd Legislature, which transferred all functions, programs, and activities related to the child protective services program from the Texas Department of Human Services to TDPRS. The amendments and new section implement the Human Resources Code, sec.22. 0065(a)(4), which authorizes TDPRS to obtain information from the Texas Department of Public Safety, the Federal Bureau of Investigation, and other law- enforcement agencies regarding the criminal backgrounds of people who are the subjects of reports of child abuse and neglect. The amendments also implement Texas Civil Statutes, Article 4413(503), sec.15, which authorize the department to enter into contracts as necessary to perform any of its powers or duties. The amendments additionally implement the Texas Family Code (TFC), sec.34.052(c)(d), which authorizes anyone whom TDPRS designates as an alleged perpetrator of child abuse or neglect to request an administrative review of the investigation findings. And finally, the amendments implement TFC, sec.34. 054, which requires TDPRS to adopt voluntary standards for investigators of child abuse. sec.700.507. Investigation Interviews. (a) The worker always
                                                                                                  must: (1)-(4) (No change.) (b) Whenever necessary to complete the risk assessment or to conclude whether abuse or neglect has occurred, the worker must also: (1) (No change.) (2) make a home visit; [and/or] (3) conduct a criminal background check on the alleged perpetrator and/or the parents; and/or (4)
                                                                                                    [(3)] interview every child in the home who may have information that will help determine whether any child in the home: (A) has been abused or neglected; or (B) is at risk of abuse or neglect. sec.700.509. Purchase of Medical, Psychological, or Psychiatric Examinations. (a)-(b) (No change.) (c) If no other resources are available, the Office of Protective Services for Families and Children (PSFC) may directly
                                                                                                      [CPS may use child welfare earned funds to] purchase