ADOPTED RULES 
 
 An agency may take final action on a section 30 days after a proposal has been 
published in the  Texas Register. The section becomes effective 20 days after 
the agency files the correct document with the  Texas Register, unless a later 
date is specified or unless a federal statute or regulation requires 
implementation of the action on shorter notice. 
 If an agency adopts the section without any changes to the proposed text, only 
the preamble of the notice and statement of legal authority will be published. 
If an agency adopts the section with changes to the proposed text, the proposal 
will be republished with the changes. 
 
   
  TITLE 1. ADMINISTRATION 
 Part III. Office of the Attorney General 
  Chapter 61. Crime Victims' Compensation 
  
  (Editor's note: The text of the following sections were adopted in the August 
16, 1994, issue of the Texas Register (19 TexReg 6419). Due to submission 
sec.sec.61.2, 61.25, and 61.32 were erroneously adopted without changes. ) 
   
  The Office of the Attorney General adopts the repeal of  sec.sec.61.7, 61.10, 
61.19-61.21, 61.23-61.26, and 61.28; amendments to sec.sec.61.2, 61.6, 61.17, 
61. 27, 61.31, and 61.32; and new sec.sec.61.7, 61.10, 61.19-61.21, 61.23-61.26, 
61.28, 61.35-61.38, concerning Crime Victims' Compensation. Sections 61.6, 61.7, 
61. 10, and 61.31 are adopted with changes to the proposed text as published in 
the March 15, 1994, issue of the Texas Register  (19 TexReg 1725). Sections 
61.2, 61.17, 61.19-61.21, 61.23-61.28, 61.32, and 61.35-61.38 are adopted 
without changes and will not be republished. 
 The repeals, amendments, and new sections are necessary to ensure timely 
administration of the Crime Victims' Fund and to give effect to the legislative 
intent of the Act. The public will benefit by having more information about the 
Fund and its benefits. 
 Section 61.7 is repealed in order to adopt a new rule which more thoroughly 
explains the calculation of lost earnings. Section 61.10 is repealed to 
consolidate all rules setting limits on services. Sections 61.19-61.21 are 
repealed as duplicative of the statute. Section 61.23 is no longer applicable. 
Sections 61.24-61.26 and 61.28 are repealed in order to adopt similar rules 
which better clarify compliance, Medicaid eligibility, definitions of 
psychiatric care and counseling and the confidentiality of the application. 
 No comments were received regarding adoption of the repeals. 
 Section 61.2 is amended to make reference to the new Act and to define the 
terms "physical therapy" and "resident". The section is amended further to 
clarify what providers are eligible for reimbursement. Section 61.7 establishes 
the method by which lost earnings are calculated. Section 61.10 set limits on 
certain services and is amended to increase the limit on funeral expenses. 
Section 61.17 puts the burden on the claimant to inform the attorney general of 
any change in circumstance affecting their eligibility for payment. Section 
61.19 and sec.61.20 impose duties on law enforcement agencies to cooperate with 
the attorney general and on victims to cooperate with law enforcement. Section 
61.21 sets out the criteria used to evaluate behavior of the victim when 
determining eligibility. Section 61.23 sets a time limit for supplying the 
attorney general with requested information. Section 61.24 requires the victim 
to use collateral sources first. Section 61.25 provides time limits on the 
claims process in order to administratively close claims. Section 61.26 simply 
clarifies the extent of confidentiality of the records maintained in the victim 
or claimant's file. Section 61.27 is amended to make reference to the new Act. 
Section 61.28 sets forth the policy for requesting that providers accept payment 
in the event of a reduction as payment in full. Section 61.31 and sec.61.32 are 
amended to clarify what kind of providers are eligible for reimbursement and to 
set limits on inpatient psychiatric care. Section 61.35 establishes the 
administrative review process. Section 61.36 sets a time limit for submitting 
bills for payment. Section 61.37 requires that the victim is actually billed for 
an amount reimbursed. Section 61.38 sets forth the policy of not paying 
criminals. 
 No comments were received regarding sec.sec.61.17, 61.19, 61.23, 61.24, 61.26, 
61.37, and sec.61.38. 
 There was one general comment received in support of all the rules. Comments on 
sec.61.2 included a request to add "physical medicine and rehabilitation" to the 
definition of "physical therapy" and to use the term "physicians" instead of 
"psychiatrists". Additionally, there were requests to include "D.O.'s" in the 
term "psychiatrist" and that clinical nurse specialists or "C.N.S.'s" be 
included as reimbursable providers. A comment on sec.61.6 was that this rule 
should not apply to child victims. A comment on sec.61.7 suggested that federal 
withholding for one person and Medicare taxes be deducted to calculate "net 
earnings". A comment on sec.61.10 was that the limit on funeral expenses was too 
low. Comments on sec.61.20 opposed the requirement that victims participate in 
the prosecution of the crime in cases of family violence where there is fear of 
retaliation. Comments on sec.61.21 included general opposition to the rule's 
effect of evaluating the victim, the concern that victims of family violence may 
not be eligible if they fight back, concern over the definition of "provoke," 
and concern over the definition of "reasonably avoid the incident." The request 
was to clarify the rules or exempt battered women from them. Comments on  
sec.61.25 and sec.61.27 requested that the attorney general make reference to 
other particular sections in order to clarify the meaning of the rules. A 
comment on sec.61.28 questioned the authority of the attorney general to 
establish such a rule and asked that the attorney general be more specific with 
regard to expenses not affected by the Medical Fee Guidelines. There was also a 
comment in support of this rule. It was requested that clinical nurse 
specialists or "C.N.S.'s" be included as providers who may be reimbursed for 
mental health counseling under sec.61.31 and that osteopathic doctors or 
"D.O.'s" be included in the list of providers who may admit patients for 
inpatient psychiatric care under sec.61.32. Comments on  sec.61.31 and sec.61.32 
also opposed the limits imposed for inpatient psychiatric care and mental health 
counseling. Comments on sec.61.35 requested that reference to rights of the 
victim under subsections (b) and (c) also be referred to in subsection (a); 
questioned the authority for allocation of the burden of proof; and requested 
that the victims be told that they may hire an attorney at their own expense. A 
comment on sec.61.36 was that this rule was duplicitous. The following groups 
and associations submitted comments against the rules: Mothers Against Drunk 
Driving (MADD), the Texas Osteopathic Medical Association, the Texas Medical 
Association, the Texas Council on Family Violence, the Texas Association of 
Licensed Children's Services, People Against Violent Crime, and the Texas Crime 
Victim Clearinghouse. 
 The agency agrees with the requested changes to sec.61.2, sec.61.31, and 
sec.61.32 to include osteopathic doctors and clinical nurse specialists. 
However, the agency disagrees with the request to include "physical medicine and 
rehabilitation" in the definition of "physical therapy." The definition as 
proposed tracks the language of the definition used by the Texas Worker's 
Compensation Commission. The agency could find no general accepted definition of 
the term "physical medicine". The agency agrees with the comment regarding 
filing of claims with respect to child victims; however, this is addressed in 
the statute under Article 56.37(c)(1) of the Texas Code of Criminal Procedure. 
The agency also agrees with the comment on sec.61.7 asking that Medicare taxes 
also be deducted from "net earnings". The agency agrees with the comments on 
sec.61.20 and sec.61.21, concerning their application to victims of family 
violence; however, in order to comply with the Federal Victims of Crime Act 
(VOCA), the agency must maintain rules regarding cooperation with law 
enforcement, a basic tenet of the federal and state a compensation statutes. 
Likewise, in order to maintain the integrity of the fund, prevent unjust 
enrichment of offenders, and benefit, to the extent possible innocent victims of 
crime, the behavior of the victim at the time of the crime must be analyzed. The 
concerns voiced regarding these rules will be addressed through proper training 
of the Eligibility and Prehearing Units of the agency on the dynamics of family 
violence. The agency agrees with the comment that there should be a reference to 
sec.61.35(a)(1) in sec.61.25(b) in order to clarify the meaning of the rule. 
While the agency agrees with the comment on sec.61.27 regarding the anomaly of 
this rule, it is a rule previously adopted in 1992 which is, in the opinion of 
the agency, a policy rule protecting child victims. The agency does agree that 
the cite to the new codification should be more particular. The agency agrees 
with comments on sec.61.31 and sec.61.32 regarding the limits on services for 
counseling and inpatient psychiatric care; however, since the Crime Victims' 
Fund is limited, there must be some parameters. Since the agency has recently 
resumed 100% payments to victims for medical services, these limits may soon be 
revisited. The agency agrees with the comment on sec.61.35 requesting that the 
agency advise the victim or claimant in correspondence that they may retain 
counsel during the administrative hearing process at their own expense even 
though it is not necessary to do so. The agency disagrees with the comment that 
there is no statutory authority for the allocation of the burden of proof. The 
agency refers to Articles 56.41 and 56. 48 of the Texas Code of Criminal 
Procedure for authority. The agency disagrees with the comment on sec.61.36 
regarding its duplicity. The agency proposed this rule in order to establish a 
time limit for submission of bills, which is not found in another rule or law. 
   
  1 TAC sec.sec.61.2, 61.6, 61.7. 61.10, 61.17, 61.19-61.21, 61. 23-61.28, 
61.31, 61.32, 61.35-61.38 
 
  The amendments and new sections are adopted under the Crime Victims' 
Compensation Act, Texas Code of Criminal Procedure, Article 56.33, which 
provides the Office of the Attorney General with the authority to promulgate and 
adopt rules consistent with the Act governing its administration, including 
rules relating to the method of filing claims and the proof of entitlement to 
compensation. 
 
 
  sec.61.2. Definitions  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise. 
   
     Accomplice-A person who is criminally responsible as a party to an offense 
under Texas Penal Code, Chapter 7, as amended or as may hereafter be amended. 
   
     Chief-The administrative head of the Crime Victims Compensation Division. 
   
     Interested person -The term as used in the Act, Article 56.40 does not 
include the accused criminal offender or non-claimant creditors. 
   
     Another person -The term as used in the Act, Article 56. 45 does not 
include persons related to the claimant within the third degree of affinity or 
consanguinity; nor does it include purely donative contributors, such as 
community, civic, or religious organizations. 
   
     Pecuniary loss -Includes eyeglasses, corrective lenses, dental devices, and 
prosthetic devices. it does not include lost, damaged, or stolen property. 
   
     Physical therapy -Health care that prevents, identifies, corrects, and 
alleviates acute or prolonged movement dysfunction or pain of anatomical or 
physiological origin. Physical therapy includes the testing and measurement of 
the function of the musculoskeletal, neurological, pulmonary, and cardiovascular 
systems and rehabilitative treatment concerned with the restoration of function 
and prevention of disability caused by injury from criminally injurious conduct. 
Physical therapy also includes treatment, consultative, educational, and 
advisory services for the purpose of reducing the incidence and severity of 
disability and pain to enable, train, or retrain an individual to perform the 
independent skills and activities of the victim's daily living which the victim 
experienced immediately before the criminally injurious conduct. 
   
     Psychiatric care or counseling-Psychiatric care or counseling performed by 
psychiatrists (M.D. or D.O.), psychologists (Ph.D.), clinical nurse specialists 
(C.N.S. in psychiatric care), licensed professional counselors (LPC), licensed 
marriage and family therapists (LMFT) and licensed masters in social work-
advanced clinical practitioners (LMSW-ACP). 
   
     Reports-The term as used in the Act, Article 56.46 includes both written 
and oral reports. 
   
     Resident-The term as used in the Act, Article 56.32 includes a person who 
is in Texas with the intent to establish a permanent presence within the state. 
A person who is in Texas in pursuit of temporary business, recreational 
activities or whose presence in Texas is of a transient nature is not a 
"resident of this state" for purposes of the Act. 
   
     State-A state of the United States of America, the District of Columbia, 
the Commonwealth of Puerto Rico, or any possession or territory of the United 
States. 
 
   
  sec.61.6. Filing of Application. In determining the time period for the 
claimant's filing of an application, the chief will consider the one year to 
begin with the last known event which constituted the criminally injurious 
conduct for which the compensation is sought. For crimes or incidents occurring 
on or after September 1, 1985, the limitation period will not include that 
period of physical incapacity which reasonably prevented the claimant from 
filing an application for compensation according to the Act, Article 56.37. It 
is the claimant's responsibility to provide written, medically documented 
evidence of such physical incapacity. 
 
   
  sec.61.7. Loss of Earnings. The chief shall determine an award for actual loss 
of earnings and the anticipated loss of future earnings as follows: 
 
  (1) If the victim was employed at the time of the incident upon which the 
claim is based and incurred a disability as a direct result of the criminally 
injurious conduct that prevented the victim from working, the chief shall 
compute the actual loss of earnings by determining the weekly net earnings of 
the victim multiplied by the disability period. In this subsection, "disability 
period" means the length of time that a victim is unable to work as a direct 
result of the personal injury or emotional trauma caused by the crime, as 
determined by a physician. In this subsection, "net earnings" means gross 
earnings less federal withholding's tax, FICA tax and Medicare taxes. 
   
  (2) If the victim was unemployed at the time of the incident upon which the 
claim is based and incurred a disability as a direct result of the criminally 
injurious conduct that caused an anticipated loss of future earnings, the chief 
shall compute the anticipated loss of future earnings based on a sufficient 
showing by the claimant that the victim would have had earnings had not the 
victim suffered a personal injury, emotional trauma or death as a direct result 
of criminally injurious conduct. The chief may consider any relevant information 
in determining "sufficient showing" including, but not limited to: whether the 
victim received an offer of employment and was unable to begin employment as a 
direct result of a disability caused by the crime. 
   
  (3) in making the computations under subsections (a) and (b) of this section, 
the chief shall consider any collateral source, as defined in the Act, Article 
56.32(3). 
   
  (4) No award for actual loss of past earnings and anticipated loss of future 
earnings may exceed the limits prescribed in the Act, Article 56.42(a) (1)(A). 
 
     
  sec.61.10. Limits on Services. In addition to the rates established under the 
Act, the following limits for the provision of services are deemed to be an 
amount reasonably incurred under the Act, Article 56.32(8) of the Act. 
 
  (1) Ground ambulance transportation rates are limited to $250 for each 
ambulance response and transport. 
   
  (2) Air ambulance transportation rates are limited to $1,500 for each air 
ambulance response and transport. 
   
  (3) Funeral and burial expenses are limited to $4,500. 
   
  (4) The cost of non-prescription drugs or over the counter drugs is not a 
pecuniary loss under the Act. Under unusual fact and circumstance, the chief may 
authorize awards in excess of the limits contained in this rule. 
 
     
  sec.61.25. Closing Claims.  A claim for an award is closed when any of the 
following conditions occurs: 
 
  (a) the statutory maximum allowed under Article 56.42 of the Act has been 
awarded; 
   
  (b) the 60-day time period for appealing the decision of the Chief to award or 
deny a claim has passed without a request from the claimant for a hearing. 
   
  (c) the 20-day time period for appealing the decision of the hearing examiner 
in a final ruling has passed and the claimant has not filed a notice of 
dissatisfaction with the Attorney General as required under Article 56.48(a) of 
the Act. 
 
     
  sec.61.31. Mental Health Counseling Expenses. Counseling expenses are limited 
to 40 sessions or an amount not to exceed $3,000 for psychiatrists, 
psychologists, licensed professional counselors, marriage and family therapists 
and certified social workers-advanced clinical practitioners. Fees and billing 
procedures per session are to be determined as established by the Office of the 
Attorney General. The chief may reimburse psychologists (Ph.D.) at the rate not 
to exceed the amount established in the Texas Workers' Compensation Medical Fee 
Guidelines for reimbursement to psychiatrists (M.D.) for comparable services. 
The chief may reimburse clinical nurse specialists (CNS in psychiatric care), 
licensed professional counselors (LPC), licensed masters in social work-advanced 
clinical practitioner (LMSW-ACP) and licensed marriage and family therapists 
(LMFT) at the rate of 60% of the amount established in the Texas Workers' 
Compensation Medical Fee Guidelines for reimbursement to psychiatrists for 
comparable services. In the event the Texas Workers' Compensation Medical Fee 
Guidelines include a reimbursement rate for psychologists (Ph.D.), clinical 
nurse specialists (CNS in psychiatric care), licensed professional counselors 
(LPC), licensed masters in social work-advanced clinical practitioner (LMSW-ACP) 
and licensed marriage and family therapists (LMFT), the chief may reimburse 
those practitioners at the rate established by the Texas Workers' Compensation 
Medical Fee Guidelines. Under unusual facts and circumstances, additional 
sessions may be allowed, but limited to those which are pre-authorized and 
approved in accordance with general standards of utilization review. 
 
   
  sec.61.32. Inpatient Psychiatric Care. Inpatient psychiatric hospitalization 
care is limited to $400 per day with a maximum 30-day stay and shall include 
room, board, medications and therapeutic modalities. Inpatient psychiatric care 
includes care at a residential treatment center. Only admissions made at the 
direction of a licensed medical doctor will be payable. Under unusual facts and 
circumstances, additional hospitalization exceeding 30 days may be allowed, but 
limited to those which are pre-authorized and approved in accordance with 
general standards of utilization review. Psychiatric hospitals and residential 
treatment centers must be licensed by the proper state licensing authority. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on August 5, 1994. 
 TRD-9446214 
  Jerry Benedict 
 Assistant Attorney General 
 Office of the Attorney General 
    Effective date: August 26, 1994 
 Proposal publication date: March 15, 1994 
 For further information, please call: (512) 475-4292 
         
               
  TITLE 10. COMMUNITY DEVELOPMENT 
 Part I. Texas Department of Housing and Community Affairs 
  Chapter 53. Home Investment Partnership Program 
  
  10 TAC sec.sec.53.30-53.40 
 
  The Texas Department of Housing and Community Affairs (Department) HOME 
Investment Partnership (HOME) Program adopts new sec. sec.53.30-53.40, 
concerning the requirements for application and distribution of funds available 
under federal and state laws and regulations for the HOME Program. Sections 
53.31-53. 34, 53.36, 53.37, and 53.39 are adopted with changes to the proposed 
text as published in the August 30, 1994, issue of the Texas Register (19 TexReg 
6814). Sections 53.30, 53.35, 53.38, and 53.40 are adopted without changes and 
will not be republished. 
 The following changes were made for the purpose of clarity: sec.53.31, 
definition of co-applicant; sec.53.32(b)(4);  sec.53.33; sec.53.34(b)(3) and 
(4); sec.53.36(4); sec.53.37; and sec.53.39(1)(B), (C), and (D). The following 
changes were made due to public comment: sec.53.31, definitions of rural city 
and rural county were changed to a definition of rural area; sec.53.36, the last 
sentence regarding distribution of funds after all non-PJ applications that meet 
or exceed threshold have been funded has been changed to include redistribution 
of the funds to other activities or regions; sec.53.39(1) has been changed to 
include census information based on city and census tract rather than county; 
and sec.53.39(2) has been altered to include rental projects in or near 
colonias. 
 The adoption of the sections will provide definitions of terms commonly used in 
the program, eligible applicants and activities, funding distributions and 
allocations, and scoring process and criteria. The sections will define the 
process the program will use to distribute HOME funds. The new sections will 
provide clarity and equity for the process defined by the rules. 
 The Department did not receive any public comment in opposition to the adoption 
of the HOME Program rules during either the 30-day comment period or at the 
public hearing held on August 29, 1994. However, the Department did receive 
public comment on specific sections of the HOME Program rules, which are 
summarized as follows. 
 The respondent requested that the Department consider increasing allocation 
amounts for those applicants who have already administered effective HOME 
Programs. The respondent argued that by spreading out funding, effective program 
implementation is more difficult to accomplish. 
 The respondent requested that the Department develop a lottery to select 
applicants. All applications that meet or exceed threshold would go through a 
drawing. Those not funded would be added to the next year's lottery pool 
(thereby gaining the potential advantage of multiple entries). Another 
respondent suggested a rotation cycle so that those applicants funded one year 
will not be funded the following year. 
 The respondent suggested that applicants should define program guidelines 
during the application stage, rather than during implementation of the program. 
 Three respondents argued that Entitlement Cities have an unfair advantage over 
rural and non-entitlement cities. One respondent suggested development of 
separate scoring criteria. Another respondent suggested designating Entitlement 
cities as Participating Jurisdictions. Conversely, one respondent noted that 
Entitlement cities are not designated as Participating Jurisdictions and should 
not be penalized for being Entitlement cities. As of now, an Entitlement City's 
only source of HOME funds is the Department. 
 One respondent requested the establishment of a time frame for the processes of 
scoring of the applications and distribution of the contracts, specifically 
three months for each. 
 The respondent requested the development of a process for reviewing changes the 
Department may have made to the scope and terms of a rental application. In the 
rules, the Department has reserved the right to change the scope and terms of a 
rental application. The respondent would like the applicants to have a procedure 
for reviewing the Department's suggestions. 
 Two respondents requested a modification to the definition of rural counties to 
include the population of unincorporated areas only. One respondent requested 
that the definition stay as it is. 
 One respondent requested a reduction from $400,000 to $300,000 for the maximum 
application limit for cities with populations over 25,000. Another respondent 
commented that as maximum limits are established, the Department should allow 
applicants to receive up to the maximum amount, without reduction during funding 
recommendations. 
 The respondent requested a clearer definition of target population. 
 Three respondents requested the Department reinstate Rental Programs or 
rehabilitation of single-family rental units. 
 The respondent raised issue to the wording of sec.53.36, in which the last line 
suggests that Participating Jurisdictions would receive funding if there are not 
enough non-Participating Jurisdictions in a certain region or activity. The 
respondent argued that Participating Jurisdictions should never receive funding 
from the Department, as they already receive funding from HUD. 
 The respondent requested a reduction in the threshold score by the amount of 
points given to colonias, as these points are not equally accessible to all 
applicants. 
 The applicant requests that rental site visits should look at appropriateness 
and compatibility of zoning. 
 The respondent requests the development of criteria scoring reasonableness 
(realism) and readiness to proceed in a rental project assistance application. 
 One respondent requested that census data for scoring criteria Number 1 be 
based on city data for cities and non-incorporated area data for counties. 
Additionally, eight respondents requested that census data be based on census 
tracts. 
 Four respondents commented on scoring criteria Number 2. One respondent 
maintained that parts (a) [located in a colonia within 150 miles of the 
Texas/Mexico Border] and (b) [located in a Federal Empowerment Zone or 
Enterprise Community, a State Designated Enterprise Zone, or a community 
receiving technical assistance under the Economic Empowerment Grant through the 
Texas Community Development Program] are not accessible to all grantees. The 
respondent suggested that the criteria be eliminated or restructured. An 
additional respondent agreed that criteria (a) is too selective. Another 
respondent questioned whether applicants would receive points for applying for 
status described under criteria (b), as the results may not be out at the time 
of scoring. A different respondent suggested that criteria (a) be changed, in 
regards to rental projects, to include those projects "along the border," as 
projects are not feasible within colonias. 
 Seven respondents suggested eliminating leveraging, scoring criteria Number 3, 
as a scoring criteria because rural and non-Entitlement cities do not have 
access to the funding that Entitlement cities receive. One respondent requested 
consideration of submission of applications for additional funding (other than 
HOME funds). 
 The respondent stated that scoring criteria Number 5, designation as rural, is 
too selective. 
 Seven respondents requested that contracted professional/consultant experience 
be considered when scoring experience and ability, criteria Number 6, as local 
staff does not have the experience or time to administer a program and will be 
hiring outside assistance. 
 Seven respondents requested the elimination of scoring criteria Number 7, 
scoring local financial design. An additional respondent suggested restructuring 
the criteria or eliminating it. Another respondent found this criteria 
inconsistent with the purpose of other scoring criteria. All respondents felt 
that the people usually assisted by this program would be excluded by 
limitations this criteria would inflict. 
 Eight respondents requested that development of a Continuum of Care Policy not 
be included as scoring criteria Number 11 because smaller cities do not have the 
resources to begin and maintain a policy. 
 Seven respondents requested eliminating scoring criteria Number 12, 
establishment of partnerships, because smaller cities do not have organizations 
with whom they can apply. 
 One respondent suggested eliminating scoring criteria Number 17, scoring 
actions that eliminate or reduce barriers to affordable housing. One respondent 
suggested expanding the definition to include environmental racism. 
 The respondent argued that scoring based on the number of low-income persons 
assisted, criteria Number 20, was inconsistent with scoring criteria Number 7 
(Recapture of Funds). 
 In regards to applicant funding, it is the policy of the Department to serve 
the entire state, while targeting assistance to those with the most need. To 
meet this goal with limited resources, the Department set allocation amounts 
conducive to funding the most applicants possible, without sacrificing effective 
programs. 
 In response to the public comment concerning applicant selection, the 
Department, through the rules, has implemented policy requiring applicants who 
have received HOME funds in previous funding cycles to have expended at least 
50% of those funds before they are eligible to apply again. This policy prevents 
excessive layering of HOME funds, and has the effect of spreading the funds 
among applicants who have not been funded recently, while still allowing the 
Department to target money to those areas identified by the most recent 
Comprehensive Housing Affordability Strategy (CHAS) as being most in need of 
assistance. 
 With regards to the comment concerning program description, the Department's 
staff provides technical assistance to funded applicants on all the rules and 
criteria related to the program at implementation workshops. Until then, most 
applicants do not know enough of the program to develop adequate guidelines. The 
applicant is required to provide a detailed program description at the time of 
application. 
 Definition and designation of Participating Jurisdictions (PJs) are statutory 
issues, defined at the federal level by HUD and Congress. At this time, 
designation as an Entitlement city does not ensure designation as a PJ, so those 
Entitlement cities not deemed PJs must apply to the Department. In creating 
scoring criteria, the Department has worked to be equable to all applicants, 
while targeting funds to those areas of most need. The Department included 
scoring criteria, such as points for rural communities, with the intent to 
diminish the effect of points, for criteria such as leveraging, more easily 
earned by Entitlement cities. 
 The Department has established an internal timeline for the review and scoring 
of all applications, and for the distribution of contracts. This timeline, 
however, is dependent on factors outside the control of the Department (i.e. 
number of applications received), and is intended only as a target. 
 In consideration of the comment concerning the rental application process, all 
funded applicants have an opportunity to review their contracts before signing 
them. Rental applicants have until closing to evaluate any modifications made to 
their proposed projects. 
 The Department concurs with the request to change the definition of rural 
counties. Rural cities and counties have been consolidated under "rural area," 
defined as incorporated municipalities with a population of 5,000 or less, or 
unincorporated areas of a county. 
 With regards to application maximums, applicants may apply for up to the 
maximum amount, but it is up to the discretion of the Department and the Board 
to determine final allocation amounts. Changes may be made due to external 
factors the Department is unable to predict at this time. 
 For the purpose of determining application maximums, the Department defines 
target population as the population of the city or county in which the program 
or project is located. 
 Due to limited resources, the Department has endeavored to streamline the HOME 
Program to make the most efficient use of the funds available. Towards this 
goal, the Department discontinued Rental Program Assistance. However, 
rehabilitation of single-family rental units continues to be available under 
Rental Project Assistance, so long as the units are identified in the 
application and are under common ownership and management. 
 The Department concurs with this public comment concerning funding of PJs, and 
recommends that the proposed rules be modified to incorporate this revision. The 
last sentence in sec.53.36 now reads, "If funds remain in a region or activity 
after all non-PJ applications that meet or exceed threshold have been funded, 
then the funds may be transferred to another region or activity, or the 
Department may consider funding PJ applications that meet or exceed threshold." 
 In regards to the comment concerning threshold score, it is the policy of the 
Department to target funds to those areas with the most need and those who have 
been historically underserved. The threshold score was established to prevent 
funding of applications that do not express at least that minimum degree of 
need. 
 The Department concurs that the issues of appropriateness and compatibility of 
zoning are important to selection of a successful rental project. These issues 
are already evaluated in the scoring criteria addressing appropriateness of 
zoning, sec.53.39(21)(E). 
 The Department agrees that the issues of reasonableness and realism are 
important in the evaluation and determination of successful rental projects. 
Currently, the Department's Underwriting Section assesses these criteria during 
their scoring process. 
 The Department concurs with these public comments concerning scoring criteria 
Number 1, and recommends that the proposed rule be modified to incorporate this 
revision. The scoring criteria will be based on city census data for cities, and 
census tract data for counties. 
 In regards to scoring criteria Number 2, the Department is required to develop 
program designs pursuant to the CHAS. Though not accessible to all applicants, 
the above mentioned criteria were established as priorities in the most recent 
CHAS. When scoring criteria (b), the Department will consider only those 
applicants who have been identified as one of the above mentioned zones or 
communities. In regards to rental projects, the Department concurs with this 
public comment, and recommends that the proposed rule be modified to incorporate 
this revision. sec.53.39(2)(A) will now read, "located in a colonia, or rental 
projects located in or near a colonia, in a county within 150 miles of the 
Texas/Mexico Border." 
 The Fifth Interim Rule defines the HOME Program purpose on the federal level. 
With regards to the commenters' requests that the Department eliminate scoring 
criteria Number 3, two elements of the purpose are to increase the investment of 
private capital and the use of private sector resources in the provision of 
decent, safe, sanitary, and affordable housing and to leverage HOME funds 
insofar as practicable with state and local matching contributions and private 
investment. The State of Texas provides the matching required by the federal 
regulations, so the Department is promoting leveraging on the local level. The 
Department will consider as leveraging only funds that are firmly committed to 
the program or project. 
 In consideration of the comment regarding rural areas, the Department believes 
in taking proactive measures to ensure that HOME funds are equally accessible to 
all communities in the State of Texas. 
 For purposes of fairness, the Department, when evaluating scoring criteria 
Number 6, must score the experience and ability of the entity submitting the 
application. 
 With regards to the comment on criteria Number 7, the use of repayable or 
deferred loans eliminates the possibility of a windfall profit by a recipient of 
HOME funds. The Department realizes that not all recipients will be best served 
by that type of loan, and therefore delegates decisions on loan structure to the 
local level. The Department, however, will still promote repayable loans. 
 The Department agrees that at this time the development of a Continuum of Care 
Policy (scoring criteria Number 11) should not be a scoring criteria . The 
concept is too new to expect 1994 applicants to develop a plan by December 20, 
1994, the application due date. However, the scoring criteria will remain in the 
rules as the Department will be using it in the future. 
 With regards to the comment concerning scoring criteria Number 12, the purpose 
of the HOME Program on the Federal and State level is to create, to strengthen, 
and to encourage partnerships among all levels of government and the private 
sector to produce and/or manage affordable housing. The Department also feels 
that this criteria will enhance the capacity of local and private to assist in 
creating affordable housing units. 
 Scoring criteria Number 17 was developed in response to a strategy identified 
in the CHAS. The Department feels that this criteria is useful in overcoming 
barriers to financing experienced by very-low and low income Texans. Past 
environmental policies and practices may be manifested as economic barriers to 
financing of properties by financial institutions and insurance companies. This 
concern may have been resolved in part, not under this criteria, but by the 
environmental assessments required for each project. The Department will focus 
on reduction of the impact of environmental racism by making housing in other 
neighborhoods more affordable. 
 The Department feels that scoring criteria Number 20 is not inconsistent with 
scoring criteria Number 7. Repayable and deferred loans can be structured, based 
on local preference, to remain affordable to very-low income recipients. 
However, the Department did consider this concern when developing the scoring 
breakdown for scoring criteria Number 7. 
 The new sections are proposed under Title II of the Cranston-Gonzales National 
Affordable Housing Act of 1990 (42 United States Code, sec.sec.12701-12839), and 
24 Code of Federal Regulations, Part 92. 
 The new sections are adopted pursuant to the authority at Texas Government 
Code, Chapter 2306; Acts of the 73rd Legislative Regular Session, Senate Bill 
45, Chapter 141, page 292, effective May 16, 1993; and Act of the 73rd 
Legislative Regular Session, Senate Bill 1356, Chapter 725, page 2838, effective 
September 1, 1993, which provides the Texas Department of Housing and Community 
Affairs with the authority to adopt rules governing the administration of the 
Department and its programs. 
 
 
  sec.53.31. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise. 
   
     Board-The governing board of the Department. 
   
     CHAS-The State of Texas Comprehensive Housing Affordability Strategy 
planning document which is reviewed and approved annually by HUD. 
   
     Co-applicants-A partnership between a CHDO or non-profit organization and 
any eligible applicant as defined in sec.53.32(a), created for the purpose of 
applying for HOME funds. Signature authorities of both the CHDO or non-profit 
organization and the co-applicant are required to sign the contract with the 
Department. The program may be administered by either entity or by both as 
determined by the applicants in their application. The co-applicant must be 
within the service area of the CHDO or non-profit. Co-applications are not 
eligible for CHDO set-aside activities. 
   
     Community Housing Development Organizations (CHDOs) -A private non-profit 
organization as defined by 24 Code of Federal Regulations,  sec.92.2. 
   
     Continuum of Care Policy-A policy created for the purpose of documenting a 
grantee's plan to address the local housing needs. The policy would include an 
assessment of needs, identification of resources, and information on how the 
grantee will provide assistance to those at all stages; i.e. providing shelter 
for the homeless, self-sufficiency training while they receive rental 
assistance, then loans to become first-time homebuyers. 
   
     Department-The Texas Department of Housing and Community Affairs. 
   
     Expenditure-Means the applicant has drawn-down funds from HUD's C/MI System 
for work completed, inspected and approved. 
   
     HOME-The Home Investment Partnership Program pursuant to 42 United States 
Code, sec.sec.12701-12839 and HUD regulations at 24 Code of Federal Regulation, 
Part 92, as amended. 
   
     First-Time Homebuyer -A low-income family who has not owned a home in the 
last three years or those exceptions as defined by 24 Code of Federal 
Regulations, sec.92.2. 
   
     HUD-The United States Department of Housing and Urban Development. 
   
     Low-income Families -Families whose annual incomes do not exceed 80% of the 
median income of the area, as determined by HUD, with adjustments for family 
size. 
   
     Mixed-Income Projects -Rental projects may contain units that can be rented 
to families over 80% of median family income for the area. These "over-income" 
units may not be assisted with HOME funds. 
   
     Participating Jurisdictions (PJs)-Any state or unit of general local 
government, including consortiums per 24 Code of Federal Regulations, 
sec.92.101, that has been so designated by HUD in accordance with 24 Code of 
Federal Regulations, sec.92.105. 
   
     Program-Funding provided in the form of a contract to an eligible applicant 
for the purpose of administering more than one project or assisting more than 
one household. 
   
     Program Description -A document required per 24 Code of Federal 
Regulations, sec.92.150 describing how the state will distribute HOME funds 
consistent with priorities identified in the CHAS. 
   
     Program Income -Funds received by the Department as loan repayment in the 
form of interest or principal, funds received by the Department on behalf of 
grantees who distributed their allocation in the form of a loan to owners, or 
funds recaptured from the sale of a First-Time Homebuyer assisted unit. 
   
     Project-A site or an entire building, or two or more buildings, together 
with the site or sites on which the building or buildings are located, that are 
under common ownership, management, and financing and are to be assisted with 
HOME funds, under a commitment by the owner, as a single undertaking under 24 
Code of Federal Regulations, sec.92.2. Project includes all the activities 
associated with the site and building. A project may include more than one site 
only if the sites are within a four block area of each other. 
   
     Rural Area-Incorporated municipalities with a population of 5,000 or less, 
or unincorporated areas of a county. 
   
     Special Needs-Homeless, or non-homeless who are: low-income elderly, frail 
elderly, persons with disabilities, persons with alcohol and or other drug 
additions, and persons with AIDS and AIDS related diseases; as defined in the 
State of Texas CHAS. 
   
     Tenant-Based Rental Assistance (TBRA)-A form of rental assistance in which 
the assisted tenant may move from a dwelling unit with a right to continued 
assistance. 
   
     Unit of General Local Government-A city, town, county, or other general 
purpose political subdivision of the State; a consortium of such subdivisions 
recognized by HUD in accordance with 24 Code of Federal Regulations, sec.92.101; 
and any agency or instrumentality thereof that is established pursuant to 
legislation and designated by the chief executive to act on behalf of the 
jurisdiction. An urban county is considered a unit of general local government 
under the HOME Program. 
   
     Very Low-Income Families-Low-income families whose annual incomes do not 
exceed 50% of the median family income for the area as established by HUD, with 
adjustments for family size. 
 
   
  sec.53.32. Applicant Requirements. 
 
  (a) Eligible Applicants. The following organizations or entities are eligible 
to apply for HOME activities unless otherwise approved by the Board of Directors 
and/or set out in the application: 
 
  (1) nonprofit organizations which have established status under the Internal 
Revenue Code of 1986, sec.501(c), and state chartered non-profit organizations; 
   
  (2) state certified CHDO's; 
   
  (3) units of general local government (e.g., cities and counties); 
   
  (4) for-profit entities; 
   
  (5) public housing authorities; and 
   
  (6) co-applicants of eligible applicants. 
     
  (b) Performance requirements. An applicant must satisfy each of the following 
requirements, by the application deadline, in order to be eligible to apply for 
HOME Program funding. 
 
  (1) demonstrate the ability to manage and administer all facets of a housing 
program; 
   
  (2) demonstrate programmatic and contract compliance on any existing or prior 
Department contracts; 
   
  (3) resolve all audit findings related to existing and prior Department 
contracts; 
   
  (4) demonstrate reasonable expenditure and project identification performance 
on open HOME contract pursuant to the following policy: 1992 grantees must have 
expended a minimum of 50% of their available project funds, and identified 100% 
of their units in the HUD C/MI System by the application due date to be 
eligible. Evidence of expenditure and project identification must be submitted 
with the application, and will be reconciled with the Department's C/MIS reports 
in the application review process; 
   
  (5) or demonstrate satisfactory performance otherwise required by the Board 
and set out in the application guidelines. 
 
       
  sec.53.33. Application Maximums.  Applicants may only submit one application 
per activity and the total amount requested for all activities may not exceed 
the cap established in this section. CHDO's or non-profit organizations desiring 
to submit more than one application per activity, must do so as a co-applicant. 
Each co-applicant with a different eligible applicant is regarded as a separate 
applicant. Application maximums are based on target area population and are 
applicable to all activities except Rental Housing Assistance and Housing 
Innovation Fund, for which there is no maximum application amount. The 
Department, under approval from the Board, reserves the right to allow maximum 
application amount waivers. Maximum amount requestable by applicant determined 
by target area population: 
 
  (1) for population 25,001 and up-$400,000; 
   
  (2) for population 5,001 to 25,000-$300,000; 
   
  (3) for population 5,000 and less-$200,000. 
 
     
  sec.53.34. Eligible Activities. 
 
  (a) Owner-occupied housing assistance. Funds available for this activity are 
provided for the purpose of rehabilitating or reconstructing existing owner-
occupied housing. Assisted owners must be low income under the sec.8 definition, 
and must own the property as their principal residence through one of the 
approved forms of homeownership as defined in 24 Code of Federal Regulations, 
sec.92.2. At a minimum, each house must meet  sec.8 Housing Quality Standards, 
or local code, whichever is more stringent at completion. More restrictive codes 
apply depending on the amount of assistance provided as defined in 24 Code of 
Federal Regulations, sec.92.251(a). 
   
  (b) First-time homebuyer assistance. The purpose of this activity is to assist 
low-income families in obtaining a home. First-Time Homebuyers must meet certain 
requirements and all HOME funds utilized for First-Time Homebuyer Assistance are 
subject to the Department's recapture restrictions as approved by HUD in the 
State's HOME Program Description and outlined in the application guidelines. 
Eligible uses of First-Time Homebuyer Assistance are as follows, or as otherwise 
approved by the Board and/or established in the application guidelines: 
 
  (1) down-payment assistance; 
   
  (2) closing cost assistance; 
   
  (3) second lien gap financing not to exceed $15,000 per unit; and 
   
  (4) using HOME funds for eligible First-Time Homebuyer activities in 
conjunction with other existing non-HOME funded First-Time Homebuyer Programs. 
     
  (c) Rental project assistance. The purpose of this fund is to increase and 
preserve the supply of safe, decent, affordable rental housing by funding rental 
project applications. Owners of rental units are required to keep the units 
affordable for a period of time depending upon the amount of assistance provided 
per unit as determined by 24 Code of Federal Regulations,  sec.92.252. 
   
  (d) Tenant-based rental assistance. HOME funds may be used for tenant-based 
rental assistance where the need for assistance is an essential element of an 
approved housing strategy for expanding the supply of affordable rental housing. 
Funded applicants must provide tenants with a training program that leads to 
self-sufficiency and removal from public financial assistance. At least 70% of 
the families selected to participate to receive assistance must be those 
families that occupy substandard housing (including families that are homeless 
or living in a shelter for homeless families); families that are paying more 
than 50% of (gross) family income for rent; or families that are involuntarily 
displaced. Eligible families currently residing in units designated for 
rehabilitation may also be selected for rental assistance. Assistance is 
available to the tenant for a maximum of two years. 
   
  (e) CHDO pre-development loans. The Department may set-aside up to 10% of the 
CHDO 15% set-aside for pre-development loans per 24 Code of Federal Regulations, 
sec.92.301. Funds for pre-development loans are available only when provided in 
conjunction with a Rental Housing Assistance application and may only be used 
for activities such as project-specific technical assistance, site control 
loans, and project-specific seed money. Pre-development loans must be repaid 
from construction loan proceeds or other project income. Per 24 Code of Federal 
Regulations, sec.92.301(3), the Department may elect to waive pre-development 
loan repayment, in whole or in part, if there are impediments to project 
development that the Department determines are reasonably beyond the control of 
the CHDO. In the event pre-development loans are not awarded, the amount 
remaining is reserved as CHDO set-aside activity funds. 
 
     
  sec.53.36. Distribution of Funds. In accordance with 24 Code of Federal 
Regulations, sec.92.201(b)(1), the Department will make every effort to 
distribute the funds throughout the state according to the state's assessment of 
the geographic distribution of housing need, as identified in the CHAS. The 
Department will take into consideration the nonmetropolitan share of the state's 
total population and objective measures of rural housing need, such as poverty 
and substandard housing. Applicants may submit applications for programs or 
projects located in a PJ, however, the Department will give priority for funding 
to non-participating jurisdictions. If funds remain in a region or activity 
after all non-PJ applications that meet or exceed threshold (defined in 
sec.53.38 of this title (relating to Application Review and Scoring Process)) 
have been funded, then the funds may be transferred to another region or 
activity, or the Department may consider funding PJ applications that meet or 
exceed threshold. 
 
  (1) Owner-occupied housing assistance will be distributed according to 
regional allocation goals established for each of the eleven planning regions in 
the CHAS. Applicants will compete within their region for the regional 
allocation. Poverty and substandard housing census indicators will be utilized 
in calculating the amount each region will be allocated. As funds are available, 
the Department will publish a Notice of Funding Availability (NOFA) in the Texas 
Register. The NOFA will establish a deadline for receiving applications and 
state the approximate amount of available funds. The number of applications 
recommended for each region will depend on the availability of funds for that 
region. 
   
  (2) First-time homebuyer assistance will be distributed according to regional 
allocation goals established for each of the eleven planning regions in the 
CHAS. Applicants will compete within their region for the regional allocation. 
Poverty and substandard housing census indicators will be utilized in 
calculating the amount each region will be allocated. As funds are available, 
the Department will publish a Notice of Funding Availability (NOFA) in the Texas 
Register. The NOFA will establish a deadline for receiving applications and 
state the approximate amount of available funds. The number of applications 
recommended for each region will depend on the availability of funds for that 
region. 
   
  (3) Tenant-based rental assistance (TBRA) will be distributed through a state-
wide competition. Applicants will compete statewide for the activity allocation. 
As funds are available, the Department will publish a Notice of Funding 
Availability (NOFA) in the  Texas Register. The NOFA will establish a deadline 
for receiving applications and state the approximate amount of available funds. 
The number of applications recommended for the activity will depend on the 
availability of funds. 
   
  (4) Rental project assistance will be distributed through a statewide 
competition, and will be divided evenly into two funding cycles per program 
year. Applicants will compete statewide for each funding allocation. Marginal 
funds not used in the first funding cycle will be rolled over into the 
subsequent cycle. Funds remaining in the second cycle will be transferred to the 
Housing Innovation Fund, or other funding categories as determined by the 
Department. As funds are available, dates of application submission will be 
published in two separate NOFAs in the  Texas Register. The number of 
applications recommended for the activity will depend on the availability of 
funds. Applicants for Rental Project Assistance may only receive funding for one 
contract per program year. 
   
  (5) CHDO set-aside. Per 24 Code of Federal Regulations, sec.92.300, not less 
than 15% of the HUD provided HOME funds shall be set aside by the Department for 
CHDO eligible activities, specifically where the CHDO will perform the role of 
Developer, Owner, or Sponsor, as outlined in the application guidelines. Funded 
CHDO applicants for set-aside activities will receive a proportionate amount of 
the available operating expenses in lieu of administrative funds. CHDO set-aside 
applications will compete statewide in a CHDO set-aside competition. If an 
insufficient number of qualified applications are received by the deadline, the 
Department reserves the right to hold a second competition in an effort to meet 
this federal set-aside requirement. 
   
  (6) Special needs set-aside. The purpose of this set-aside is to provide 
housing for persons with special needs, as defined by the State's CHAS, who have 
been historically underserved. Private or public non-profit organizations with a 
documented history of working with special needs populations and relevant 
housing related experience may apply. Applicants lacking housing experience may 
apply in partnership with another eligible applicant, as defined by sec.53.32(a) 
of this title (relating to Applicant Requirements), with related housing 
experience. Eligible applicants may submit applications for one of the above 
forms of assistance other than pre-development loans and applications will be 
scored and reviewed separately from all other applications. Special needs 
applicants will only compete against each other on a statewide basis. If an 
insufficient number of qualified applications are received by the deadline, the 
Department reserves the right to hold a second competition or transfer funds 
remaining in the set-aside to another funding category. 
   
  (7) Housing Innovation Fund (HIF). The purpose of the Housing Innovation Fund 
is to award applications that provide innovative methods of utilizing HOME funds 
or that meet unanticipated or extreme housing needs. Assistance under this fund 
may be provided to grantees in the form of a repayable loan, when applicable, 
and all loan repayments will be made to the Department. Interested applicants 
will be required to submit a preapplication or proposal outlining the need for 
HOME funding assistance. Preapplications or proposals may be submitted 
throughout the year, pending availability of funds. The Department will review 
the proposal or preapplication, and if acceptable, will advise applicants on 
which application to complete and submit for review. 
   
  (8) Reallocation. In the event that the Department fails to receive a 
sufficient number of applications from a particular CHAS region or funding 
category or activity, or if no applications are submitted for a region or no 
applications for a region meet or exceed the threshold score, it will be within 
the discretion of the Department to reallocate funds to other CHAS regions or 
other funding categories or activities, per Board approval, in an effort to 
commit the funds in a timely manner. 
   
  (9) Marginal applications. Where the remainder of the target allocation is 
insufficient to completely fund the next ranked application, it will be within 
the discretion of the Department to reduce the amount of the request, or to 
transfer funds to the Housing Innovation Fund or other funding categories. 
 
     
  sec.53.37. Allocation Plan.  The following allocation plan will be revised 
each program year by the Board per resolution to reflect the federal award 
amount. The revised allocation plan will be published each program year in the 
Texas Register. 
 
  (1) Administration costs. Each year, HUD allows the State to utilize 10% of 
its federal allocation for administration costs per 24 Code of Federal 
Regulations, sec.92.207. The Department will retain 6.0% to administer the 
program, and pass through a proportional amount of 4.0% to eligible grantees for 
their administrative uses. 
   
  (2) CHDO operating expenses. Upon an assessment of need performed by the 
Department, a portion of the funds available for projects, not to exceed 5. 0% 
of the federal allocation, will be reserved for CHDO Operation Expenses. 
   
  (3) CHDO set-aside. A minimum of 15% of the federal allocation will be 
reserved for CHDO eligible activities. An amount not to exceed 10% of the 15% 
can be used for CHDO Pre-Development Loans. 
   
  (4) Activity funds. The federal HOME funds, less administration costs and 
operating expenses, plus funds provided through State General Revenue as 
matching funds shall be available for activities subject to the Departmental 
preferences set forth below. The amount of match required each year is 
determined by HUD per 24 Code of Federal Regulations, sec.92.218 and sec.92.222 
of the funds available: 
 
  (A) owner-occupied housing assistance will be allocated approximately 42%; 
   
  (B) first-time homebuyer assistance will be allocated approximately 16. 5%; 
   
  (C) TBRA will be allocated approximately 3.5%; 
   
  (D) rental project assistance will be allocated approximately 23.5%; 
   
  (E) special needs set-aside will be approximately 10%; 
   
  (F) housing innovation funds will be allocated approximately 4.5%. 
 
       
  sec.53.39. Scoring Criteria.  Scoring criteria are subject to change by board 
resolution. The applicable criteria will be delineated in the application 
guidelines. Specific criteria will be approved by the Board in a separate 
document(s). Each of the following scoring criteria will be utilized in scoring 
the applications; however, not all criteria will apply to all activities: 
 
  (1) the extent to which the efforts as evidenced by census indicators will be 
located in a city or census tract with: 
 
  (A) percent of households with income below poverty level; 
   
  (B) percent of renter and homeowner cost burden; 
   
  (C) percent of substandard rental and owner-occupied housing; and 
   
  (D) percent of overcrowding; 
     
  (2) the extent to which the applicant describes need based on the following 
factors: 
 
  (A) located in a colonia, or a rental project located in or near a colonia, in 
a county within 150 miles of the Texas/Mexico Border; 
   
  (B) located in a Federal Empowerment Zone or Enterprise Community, a State 
Designated Enterprise Zone, or a community receiving technical assistance under 
the Economic Empowerment Grant through the Texas Community Development Program; 
   
  (C) has an existing, applicable waiting list; 
   
  (D) has a lack of affordable units; or 
   
  (E) is needed for a current emergency situation; 
     
  (3) the extent to which other funds have been committed to the program/project 
(leveraging); 
   
  (4) the extent to which the application targets assistance to the following 
special population groups identified by the CHAS: large families, single heads 
of households, and those with special needs; 
   
  (5) the extent to which the program/project is located in a rural city or 
rural county; 
   
  (6) the extent to which the applicant has the experience and ability to 
administer HOME funds; 
   
  (7) the extent to which the applicant proposes to recapture funds by 
allocating money in the form of a deferred loan, or repayable loan; 
   
  (8) the extent to which the applicant has developed programs to administer 
personal financial management and home maintenance training; 
   
  (9) the extent to which the applicant proposes to provide mixed-income units; 
   
  (10) the extent to which the applicant has developed a family self-sufficiency 
program; 
   
  (11) the extent to which the applicant has established a continuum of care 
policy; 
   
  (12) the extent to which the applicant proposes to apply in partnership with 
other organizations or entities; 
   
  (13) the extent to which the project is located in an urgent-impact area; 
   
  (14) the extent to which the property management agent is qualified to manage 
the rental units; 
   
  (15) the extent to which the applicant proposes to involve tenants in the 
management of the units; 
   
  (16) the extent to which the project requires minimal or no permanent or 
temporary relocation; 
   
  (17) the extent to which the applicant has developed actions that eliminate or 
reduce barriers to affordable housing; 
   
  (18) the extent to which the applicant has involved the community in the 
development of the application or administration of the program/project; 
   
  (19) the extend to which the applicant proposes to provide affordable housing 
to residents for a longer period of time than required by HUD; 
   
  (20) the extent to which the applicant proposes to serve very-low income 
persons; 
   
  (21) the extent to which a project site: 
 
  (A) is accessible to public and community services; 
   
  (B) complies with site and neighborhood standards applicable to new 
construction; 
   
  (C) is accessible to utilities such as water, wastewater, electric, and 
natural gas; 
   
  (D) is compatible with existing neighborhood; 
   
  (E) is appropriately zoned, or can obtain zoning; 
     
  (22) the extent to which the HIF program/project meets an identified urgent or 
unmet need; 
   
  (23) the extent to which the HIF program/project is cost effective; 
   
  (24) the extent to which the HIF program/project is innovative; 
   
  (25) the extent to which the HIF program/project is financially feasible; 
   
  (26) the extent to which the HIF program/project provides permanency of 
effect; and 
   
  (27) the extent to which the HIF program/project promotes neighborhood 
revitalization. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 14, 1994. 
 TRD-9450881 
  Henry Flores 
 Executive Director 
 Texas Department of Housing and Community Affairs 
    Effective date: December 5, 1994 
 Proposal publication date: August 24, 1994 
 For further information, please call: (512) 475-2135 
         
                 
  TITLE 19. EDUCATION 
 Part II. Texas Education Agency 
  Chapter 175. Proprietary Schools and Veterans Education 
  
  Subchapter E. Minimum Standards for Operation of Texas Proprietary Schools 
 
  19 TAC sec.175.128 
 
  The Texas Education Agency (TEA) adopts an amendment to  sec.175.128, 
concerning application fees and other charges for proprietary schools, without 
changes to the proposed text as published in the September 20, 1994, issue of 
the Texas Register (19 TexReg 7322). The rule is necessary to provide equity for 
small proprietary schools and reduce financial burden on large schools. 
 The rule decreases the late fee for the issuance of a certificate of approval 
from 12% to 10%, reduces the minimum late fee from $500 to $200, and sets a 
maximum late fee of $1,000. 
 South Texas Vocational Technical School, McAllen and Weslaco, Texas; and 
Universal Technical Institute, Houston, Texas, commented in support of the 
proposed amendment. 
 The amendment is adopted under the Texas Education Code,  sec.32.34(d), which 
authorizes the State Board of Education to establish the amount of a late 
renewal fee for proprietary schools. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 14, 1994. 
 TRD-9450895 
  Criss Cloudt 
 Executive Associate Commissioner, Policy Planning and Information Management 
 Texas Education Agency 
    Effective date: December 5, 1994 
 Proposal publication date: September 20, 1994 
 For further information, please call: (512) 463-9701 
         
           Chapter 176. Driver Training Schools 
  
  Subchapter B. Minimum Standards for Operation of Texas Driver Training Schools 
 
  19 TAC sec.176.11, sec.176.18 
 
  The Texas Education Agency (TEA) adopts amendments to sec.176.11 and 
sec.176.18, concerning minimum standards for operation of Texas driver training 
schools, without changes to the proposed text as published in the September 20, 
1994, issue of the  Texas Register (19 TexReg 7323). The amendments redress the 
disparity in the restriction of approving instructors in private driver training 
schools and in public schools who have convictions involving driving while 
intoxicated (DWI). 
 The amendment to sec.176.11 reduces the number of years an instructor is 
subject to denial or revocation from teaching subsequent to a conviction 
involving DWI. The amendment to  sec.176.18 revises the reasons the commissioner 
of education may suspend, revoke, or deny an instructor's license. 
 Safe-Way Driving Centre Corporation, Houston, Texas; and USA Training Company, 
Inc., Austin, Texas, commented in support of the proposed amendments aligning 
the two standards. A representative of National Safety Training Institute, a 
driving school, requested that the number of years a private driver training 
school instructor is subject to denial or revocation be three years as opposed 
to seven years. 
 The TEA proposed the amendments to align the instructor standards for public 
and private schools. Reducing the number of years a private driver training 
school instructor is subject to denial or revocation to three years would defeat 
that purpose. 
 The amendments are adopted under Texas Civil Statutes, Article 4413(29c), 
sec.13(a)(9), which directs the commissioner of education to approve the 
application of a school when the school is found, on investigation at the 
premises of the school, to meet certain criteria; and Article 6252-13c, sec.4(a) 
, which authorizes the licensing authority to suspend or revoke an existing 
valid license, disqualify a person from receiving a license, or deny to a person 
the opportunity to be examined for a license because of a person's conviction of 
a felony or misdemeanor if the crime directly relates to the duties and 
responsibilities of the licensed occupation. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 14, 1994. 
 TRD-9450896 
  Criss Cloudt 
 Executive Associate Commissioner, Policy Planning and Information Management 
 Texas Education Agency 
    Effective date: December 5, 1994 
 Proposal publication date: September 20, 1994 
 For further information, please call: (512) 463-9701 
         
               
  TITLE 22. EXAMINING BOARDS 
 Part XV. Texas State Board of Pharmacy 
  Chapter 291. Pharmacies 
  
  Community Pharmacy (Class A) 
 
  22 TAC sec.291.31, sec.291.33 
 
  The Texas State Board of Pharmacy adopts amendments to  sec.291.31, concerning 
Definitions, without changes; and sec.291.33, concerning Operational Standards 
in a Class A Pharmacy, with changes to the proposed text as published in the 
August 26, 1994, issue of the Texas Register (19 TexReg 6699). The only change 
is the substitution of the word "institution" for the published word "facility" 
in sec.291.33(c)(4)(B)(i) and (h)(C)(i) so that the phrases now read health care 
institution. 
 The rule amendments are adopted to amend the definition of a new prescription; 
provide a method for a Class A Pharmacy to operate a Class F Pharmacy without 
obtaining a separate license; modify the patient counseling requirements to 
require a pharmacist to counsel a patient at least once a year on maintenance 
medications; specify procedures pharmacists must follow when they cannot provide 
written information for a new drug entity; add a new section to the Class A 
Pharmacy rules titled "Pharmaceutical care services;" outline an alternative 
labeling procedure which may be used for drugs prescribed for administration to 
a patient in a institution; add the language from Chapter 291 regarding the 
possession of samples by a Class A Pharmacy to the Class A rules. 
 One comment was received, regarding the amendments as proposed. The Texas 
Federation of Drug Stores, suggested that the pharmacist should not be required 
to notify the patient that written information was not being provided; to 
document the fact that no written information was provided; and to provide 
written information when it becomes available. The Board disagrees with this 
comment and believes that these steps are necessary to completely inform the 
patient and maintain a record of the transaction. 
 The amendments are adopted under the Texas Pharmacy Act (Texas Civil Statutes, 
Article 4542a-1), sec.4, which specifies that the purpose of the Act is to 
protect the public through the effective control and regulation of the practice 
of pharmacy; sec.16(a), which gives the Board the authority to adopt rules for 
the proper administration and enforcement of the Act; sec.17(b)(2) and (3), 
which gives the Board the authority to specify minimum standards for 
professional environment, technical equipment, and security in the prescription 
dispensing area, procedures for the delivery, dispensing in a suitable container 
appropriately labeled, providing of prescription drugs or devices, monitoring of 
drug therapy, and counseling of patients on proper use of prescription drugs and 
devices within the practice of pharmacy; and sec.17(o) , which gives the Board 
the authority to establish rules for the use of supportive personnel and the 
duties of those personnel in pharmacies licensed by the Board. 
 
 
  sec.291.33. Operational Standards. 
 
  (a) Licensing requirements. 
 
  (1)-(9) (No change.) 
   
  (10) A Class A Pharmacy, licensed under the provisions of the Act, 
sec.29(b)(1), which would otherwise be required to be licensed under the Act, 
sec.29(b)(6) of this title (relating to Class F Pharmacy), is not required to 
secure a license for such other type of pharmacy provided, however: 
 
  (A) such licensee is required to comply with the provisions of sec.291.111 of 
this title (relating to Purpose), sec.291.112 of this title (relating to 
Definitions), sec.291.113 of this title (relating to Personnel), sec.291.114 of 
this title (relating to Operational Standards), and sec.291.115 of this title 
(relating to Records), contained in Home and Community Support Services Pharmacy 
(Class F), to the extent such rules are applicable to the operation of the 
pharmacy; 
   
  (B) the Class A Pharmacy and the Home and Community Support Services Agency 
licensed under Health and Safety Code, Chapter 142, whose patients the Class F 
Pharmacy provides services are at the same location and under common control and 
ownership; and 
   
  (C) the pre-labeled drugs for the Class F Pharmacy are maintained in such a 
manner that a person accessing these pre-labeled drugs does not have access to 
other drugs in the Class A Pharmacy. 
       
  (b) (No change.) 
   
  (c) Prescription dispensing and delivery. 
 
  (1) Patient counseling and provision of drug information. 
 
  (A) (No change.) 
   
  (B) Such communication: 
 
  (i) shall be provided with each new prescription drug order, once yearly on 
maintenance medications, and if the pharmacist deems appropriate, with 
prescription drug order refills. (For the purposes of this clause, maintenance 
medications are defined as any medication the patient has taken for one year or 
longer); 
   
  (ii)-(iii)  (No change.) 
   
  (iv) may be reinforced with written information when deemed appropriate by the 
pharmacist. Beginning September 1, 1993, the communication shall be reinforced 
with written information. The following is applicable concerning this written 
information. 
 
  (I)  Written information designed for the consumer such as the USP DI Patient 
Information Leaflets shall be provided. 
   
  (II) When a compounded product is dispensed, information shall be provided for 
the major active ingredient(s), if available. 
   
  (III) For new drug entities, if no written information is initially available, 
the pharmacist is not required to provide information until such information is 
available, provided: 
 
  (-a-) the pharmacist informs the patient or the patient's agent that the 
product is a new drug entity and written information is not available; 
   
  (-b-) the pharmacist documents the fact that no written information was 
provided; and 
   
  (-c-) if the prescription is refilled after written information is available, 
such information is provided to the patient or patient's agent. 
         
  (C)-(F) (No change.) 
     
  (2) Pharmaceutical care services. 
 
  (A) Drug regimen review. 
 
  (i) For the purpose of promoting therapeutic appropriateness, a pharmacist 
shall at the time of dispensing a prescription drug order, review the patient's 
medication record. Such review shall at a minimum identify clinically 
significant: 
 
  (I) inappropriate drug utilization; 
   
  (II) therapeutic duplication; 
   
  (III)  drug-disease contraindications; 
   
  (IV) drug-drug interactions; 
   
  (V) incorrect drug dosage or duration of drug treatment; 
   
  (VI)  drug-allergy interactions; and 
   
  (VII) clinical abuse/misuse. 
     
  (ii) Upon identifying any clinically significant conditions, situations, or 
items listed in clause (i) of this subparagraph, the pharmacist shall take 
appropriate steps to avoid or resolve the problem including consultation with 
the prescribing practitioner. 
     
  (B) Other pharmaceutical care services which may be provided by pharmacists 
include, but are not limited to, the following: 
 
  (i) managing drug therapy as delegated by a practitioner as allowed under the 
provisions of the Medical Practices Act, Texas Civil Statutes, Article 4495b; 
   
  (ii) managing patient compliance programs; 
   
  (iii) providing preventative health care services; and 
   
  (iv) providing case management of patients who are being treated with high-
risk or high-cost drugs, or who are considered "high risk" due to their age, 
medical condition, family history, or related concern. 
       
  (3) (No change.) 
   
  (4) Labeling. 
 
  (A) At the time of delivery of the drug, the dispensing container shall bear a 
label with at least the following information: 
 
  (i) name, address and phone number of the pharmacy; 
   
  (ii) unique identification number of the prescription; 
   
  (iii) date the prescription is dispensed; 
   
  (iv)  name or initials of the dispensing pharmacist; 
   
  (v) name of the prescribing practitioner; 
   
  (vi) name of the patient or if such drug was prescribed for an animal, the 
species of the animal and the name of the owner; 
   
  (vii) instructions for use; 
   
  (viii)  quantity dispensed; 
   
  (ix) appropriate ancillary instructions such as storage instructions or 
cautionary statements such as warnings of potential harmful effects of combining 
the drug product with any product containing alcohol; 
   
  (x) if the prescription is for a Schedule II-IV controlled substance, the 
statement Caution: Federal law prohibits the transfer of this drug to any person 
other than the patient for whom it was prescribed; 
   
  (xi) if the pharmacist has selected a generically equivalent drug pursuant to 
the provisions of the Act, sec.40, the statement "Substituted for Brand 
Prescribed" or "Substituted for 'Brand Name'" where "Brand Name" is the actual 
name of the brand name product prescribed; 
   
  (xii) the name of the registered nurse or physician assistant, if the 
prescription is carried out by a registered nurse or physician assistant in 
compliance with the Medical Practice Act, sec.3.06(d); and 
   
  (xiii) the name and strength of the actual drug product dispensed, unless 
otherwise directed by the prescribing practitioner. 
 
  (I) The name shall be either: 
 
  (-a-) the brand name; or 
   
  (-b-) if no brand name, then the generic name and name of the manufacturer or 
distributor of such generic drug. (The name of the manufacturer or distributor 
may be reduced to an abbreviation or initials, provided the abbreviation or 
initials are sufficient to identify the manufacturer or distributor. For 
combination drug products or non-sterile compounded drug products having no 
brand name, the principal active ingredients shall be indicated on the label.) 
     
  (II) Except as provided in clause (xi) of this subparagraph, the brand name of 
the prescribed drug shall not appear on the prescription container label unless 
it is the drug product actually dispensed. 
       
  (B) The dispensing container is not required to bear the label specified in 
subparagraph (A) of this paragraph if: 
 
  (i) the drug is prescribed for administration to an ultimate user who is 
institutionalized in a licensed health care institution (e.g., nursing home, 
hospice, hospital); 
   
  (ii) no more than a 34-day supply or 100 dosage units, whichever is less, is 
dispensed at one time; 
   
  (iii)  the drug is not in the possession of the ultimate user prior to 
administration; 
   
  (iv) the pharmacist-in-charge has determined that the institution: 
 
  (I) maintains medication administration records which include adequate 
directions for use for the drug(s) prescribed; 
   
  (II) maintains records of ordering, receipt, and administration of the 
drug(s); and 
   
  (III) provides for appropriate safeguards for the control and storage of the 
drug(s); and 
     
  (v) the system employed by the pharmacy in dispensing the prescription drug 
order adequately: 
 
  (I)  identifies the: 
 
  (-a-) pharmacy by name and address; 
   
  (-b-) unique identification number of the prescription; 
   
  (-c-) name and strength of the drug dispensed; 
   
  (-d-) name of the patient; 
   
  (-e-) name of the prescribing practitioner; and 
     
  (II) sets forth the directions for use and cautionary statements, if any, 
contained on the prescription drug order or required by law. 
           
  (d)-(e) (No change.) 
   
  (f) Drugs. 
 
  (1)-(4) (No change.) 
   
  (5) Class A Pharmacies may not sell, purchase, trade or possess prescription 
drug samples, unless the pharmacy meets all of the following conditions: 
 
  (A) the pharmacy is owned by a charitable organization described in the 
Internal Revenue Code of 1986, or by a city, state or county government; 
   
  (B)  the pharmacy is a part of a health care entity which provides health care 
primarily to indigent or low income patients at no or reduced cost; 
   
  (C)  the samples are for dispensing or provision at no charge to patients of 
such health care entity; and 
   
  (D) the samples are possessed in compliance with the federal Prescription Drug 
Marketing Act of 1986. 
       
  (g)  (No change.) 
   
  (h) Customized patient medication packages. 
 
  (1) -(2) (No change.) 
   
  (3) Label. 
 
  (A)-(B) (No change.) 
   
  (C) The dispensing container is not required to bear the label specified in 
subparagraph (A) of this paragraph if: 
 
  (i) the drug is prescribed for administration to an ultimate user who is 
institutionalized in a licensed health care institution (e.g., nursing home, 
hospice, hospital); 
   
  (ii) no more than a 34-day supply or 100 dosage units, whichever is less, is 
dispensed at one time; 
   
  (iii) the drug is not in the possession of the ultimate user prior to 
administration; 
   
  (iv) the pharmacist-in-charge has determined that the institution: 
 
  (I)  maintains medication administration records which include adequate 
directions for use for the drug(s) prescribed; 
   
  (II) maintains records of ordering, receipt, and administration of the 
drug(s); and 
   
  (III)  provides for appropriate safeguards for the control and storage of the 
drug(s); and 
     
  (v) the system employed by the pharmacy in dispensing the prescription drug 
order adequately: 
 
  (I) identifies the: 
 
  (-a-) pharmacy name and address; 
   
  (-b-) unique identification number of the prescription; 
   
  (-c-) name and strength each drug product dispensed; 
   
  (-d-) name of the patient; 
   
  (-e-) name of the prescribing practitioner of each drug product; and 
     
  (II) for each drug product sets forth the directions for use and cautionary 
statements, if any contained on the prescription drug order or required by law. 
         
  (4)-(7) (No change.) 
     
  (i) (No change.) 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 10, 1994. 
 TRD-9450822 
  Fred S. Brinkley, Jr., R.Ph., M.B.A. 
 Executive Director/Secretary 
 Texas State Board of Pharmacy 
    Effective date: December 1, 1994 
 Proposal publication date: August 26, 1994 
 For further information, please call: (512) 852-0661 
         
               Chapter 309. Generic Substitution 
  
  22 TAC sec.309.7 
 
  The Texas State Board of Pharmacy adopts an amendment to  sec.309.7, 
concerning Dispensing Responsibilities of a pharmacist when substituting a 
generically equivalent drug product for the brand prescribed, without changes to 
the proposed text as published in the August 23, 1994, issue of the Texas 
Register (19 TexReg 6651). 
 The amendment specifies that the pharmacist must use Approved Drug Products 
with Therapeutic Equivalence Evaluations and current supplements published by 
the Federal Food and Drug Administration as a basis for determining the generic 
equivalency of a drug product. 
 Five comments were received on the proposed rule. All were in favor of adoption 
of the amendment. 
 The amendment is adopted under the Texas Pharmacy Act (Texas Civil Statutes, 
Article 4542a-1), sec.4, which specifies that the purpose of the Act is to 
protect the public through the effective control and regulation of the practice 
of pharmacy; sec.16(a), which gives the Board the authority to adopt rules for 
the proper administration and enforcement of the Act; sec.17(b)(3), which gives 
the Board the authority to specify minimum standards for the delivery, 
dispensing in a suitable container appropriately labeled, providing of 
prescription drugs or devices, monitoring of drug therapy, and counseling of 
patients on proper use of prescription drugs and devices within the practice of 
pharmacy; and sec.40, which allows a pharmacist to substitute a generically 
equivalent drug product. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 10, 1994. 
 TRD-9450821 
  Fred S. Brinkley, Jr., R.Ph., M.B.A. 
 Executive Director/Secretary 
 Texas State Board of Pharmacy 
    Effective date: December 1, 1994 
 Proposal publication date: August 23, 1994 
 For further information, please call: (512) 832-0661 
         
           Part XIX. Polygraph Examiners Board 
  Chapter 391. Polygraph Examiner Internship 
  
  22 TAC sec.391.3 
 
  The Polygraph Examiners Board adopts an amendment to sec.391.3 without changes 
to the proposed text as published in the June 21, 1994, issue of the Texas 
Register  (22 TexReg 4810). 
 The amendment is adopted so that the polygraph industry will be more closely 
regulated in areas that the Board determines to be critical. 
 This section insures that only qualified polygraph schools will be approved by 
the Board. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under Texas Civil Statutes, Article 4413(29cc), 
sec.6(a), Polygraph Examiners Act, which provide the Polygraph Examiners Board 
with the authority to issue regulations consistent with the provisions of this 
Act. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 7, 1994. 
 TRD-9450696 
  Bryan M. Perot 
 Executive Officer 
 Polygraph Examiners Board 
    Effective date: November 30, 1994 
 Proposal publication date: June 21, 1994 
 For further information, please call: (512) 465-2058. 
         
           Part XXIX. Texas Board of Professional Land Surveying 
  Chapter 661. General Rules of Procedures and Practices 
  
  Applications, Examinations, and Licensing 
 
  22 TAC sec.661.42 
 
  The Texas Board of Professional Land Surveying adopts an amendment to 
sec.661.42, concerning fees and charges the agency may assess for copies of 
public information, without changes to the proposed text as published in the 
August 26, 1994, issue of the Texas Register (19 TexReg 6716). 
 This rule is being amended to comply with Chapter 428, Acts of the 73rd 
Legislature, sec.5 and sec.9A of the Open Records Act, which requires state 
agencies to adopt rules that specify charges for copies of public records. 
 Adoption of this rule will promote uniformity throughout state government for 
providing public information. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under Texas Civil Statutes, Article 5282c, sec.9, 
which provide the Texas Board of Professional Land Surveying with the authority 
to make and enforce all reasonable and necessary rules, regulations and bylaws 
not inconsistent with the Texas Constitution, the laws of this state and this 
Act. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 9, 1994. 
 TRD-9450770 
  Sandy Smith 
 Executive Director 
 Texas Board of Professional Land Surveying 
    Effective date: December 1, 1994 
 Proposal publication date: August 26, 1994 
 For further information, please call: (512) 452-9427 
         
               
  TITLE 34. PUBLIC FINANCE 
 Part III. Teacher Retirement System of Texas 
  Chapter 25. Membership Credit 
  
  Compensation 
 
  34 TAC sec.25.30 
 
  The Teacher Retirement System of Texas (TRS) adopts an amendment to sec.25. 
30, concerning limitations on the crediting, for benefit and contribution 
purposes, of otherwise creditable compensation that has been derived from a 
conversion of noncreditable compensation to salary and wages during a TRS 
participant's last years of employment before retirement, without changes to the 
proposed text as published in the May 10, 1994, issue of the Texas Register (19 
TexReg 3565). 
 The amendment will reduce the costs to the system for administering 
retirements, the time for processing retirement applications will be shortened, 
and although employers will incur certain costs for making the certifications, 
these costs should be offset by simplified procedures for determining 
conversions that will reduce the required interaction between TRS and the 
employer during an employee's retirement processing. 
 TRS retirement benefits are based on a formula that takes into consideration 
compensation which generally consists of compensation at the end of a person's 
career. Not all forms of compensation, such as fringe benefits, sick leave, or 
lump sum bonuses, are creditable annual compensation. The amendment prevents a 
participant from avoiding member contributions on compensation received in a 
noncreditable form until a few years before reaching retirement and then 
converting such compensation to a creditable form for use in computing benefits. 
The amendment modifies the existing rule by requiring employer certifications 
with respect to these salary conversions, reducing the number of years affected 
by the rule from the member's last seven to the last five, explicitly listing 
certain payroll actions which are not to be considered conversions, stating a de 
minimis rule, and disregarding conversions in certain limited circumstances. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under the Texas Government Code, sec.825.110, which 
authorizes the Teacher Retirement System to adopt rules to exclude from annual 
compensation all or part of salary and wages in the final years of employment 
that can reasonably be presumed to have been derived from a conversion of 
noncreditable compensation; and sec.825.102, which provides authorization for 
the board to adopt rules for eligibility for membership and the administration 
of the funds of the retirement system. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 10, 1994. 
 TRD-9450835 
  Wayne Blevins 
 Executive Director 
 Teacher Retirement System of Texas 
    Effective date: December 1, 1994 
 Proposal publication date: May 10, 1994 
 For further information, please call: (512) 370-0506 
         
           Chapter 27. Termination of Membership and Refunds 
  
  34 TAC sec.27.6 
 
  The Teacher Retirement System of Texas (TRS) adopts an amendment to sec.27. 6, 
without changes to the proposed text as published in the May 10, 1994, issue of 
the Texas Register  (19 TexReg 3567). Section 27.6 concerns the reinstatement of 
service credit canceled by the termination of membership in TRS and the 
withdrawal by the member of the accumulated contributions in the account. 
 The amendment will more accurately reflect a statutory change made by the 73rd 
Texas Legislature that eliminated the length of service prerequisite for a TRS 
member's reinstatement of service credit canceled by a previous withdrawal of a 
member account. It will also allow a TRS member with more than one withdrawn 
account who desires to reinstate canceled service credit for a previously 
withdrawn account to reinstate an account without reinstating other withdrawn 
accounts that will not result in additional service credit for the member. 
 TRS will allow a member to reinstate withdrawn accounts without reinstating and 
paying for partial years that do not add to service credit which benefits the 
member. The rule also allows reinstatement of an account upon resumption of 
membership, rather than a two consecutive year waiting period as required in 
past law. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under the Government Code, sec.825.102, which provides 
authorization for the board to adopt rules for eligibility for membership and 
the administration of the funds of the retirement system. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 10, 1994. 
 TRD-9450838 
  Wayne Blevins 
 Executive Director 
 Teacher Retirement System of Texas 
    Effective date: December 1, 1994 
 Proposal publication date: May 10, 1994 
 For further information, please call: (512) 370-0506 
         
 General Administration 
       
  Open Records 
 
  34 TAC sec.51.5 
 
  The Teacher Retirement System of Texas (TRS) adopts new  sec.51.5, without 
changes to the proposed text as published in the May 10, 1994, issue of the 
Texas Register  (19 TexReg 3567). Section 51.5 concerns charges the agency will 
make for providing public information. 
 Acts of the 73rd Legislature, 1993, Chapter 428 required state agencies to 
adopt rules to specify the charges an agency would make to provide public 
information. 
 Costs for making copies of public information are set out. Those charges will 
be followed when making copies for the public. 
 No comments were received regarding adoption of the new rule. 
 The new section is adopted under the Government Code, sec.825.102, which 
provides authorization for the board to adopt rules concerning the 
administration of the funds of the retirement system. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 10, 1994. 
 TRD-9450836 
  Wayne Blevins 
 Executive Director 
 Teacher Retirement System of Texas 
    Effective date: December 1, 1994 
 Proposal publication date: May 10, 1994 
 For further information, please call: (512) 370-0506 
         
         
  Employer Reports and Deposits 
 
  34 TAC sec.51.9 
 
  The Teacher Retirement System of Texas (TRS) adopts new  sec.51.9, with 
changes to the proposed text as published in the May 10, 1994, issue of the 
Texas Register  (19 TexReg 3568). The proposed rule will increase the speed of 
depositing revenue from large remitters to the retirement system, increase 
interest income for the system and provide a safer and more efficient method for 
remitters to transmit what is owed to the retirement system. The change added a 
statutory exception from the Texas Government Code, sec.404. 095(b), which 
already required some districts to use electronic funds transfers. 
 The new rule will make it safer and more efficient for remitters to transmit 
payments to the retirement system. 
 School Districts making payments of more than $250,000 in payments will be 
required to transfer payments of $10,000 or more by electronic funds transfer. 
Those who were already required to make such transfers will continue to have the 
requirement. 
 No comments were received regarding adoption of the new rule. 
 The new section is adopted under the Texas Government Code, sec.404.095(c), 
which provides the Teacher Retirement System with the authority to adopt a rule 
to require fund transfers for payments to the system of $10,000 or more due in a 
category of payments if the district paid the retirement system a total of 
$250,000 or more in a category of payments; and sec.825.102, which authorizes 
the board of trustees to adopt rules for the administration of the funds of the 
retirement system and for the transaction of the business of the board. 
 
 
  sec.51.9. Electronic Funds Transfer for Payments.  If during the preceding 
year a district paid the retirement system a total of $250,000 or more in a 
category of payments and the retirement system anticipates that during the 
current state fiscal year the district will pay the retirement system $250,000 
or more in a category of payments, the district is required to transfer payment 
amounts of $10,000 or more due the retirement system by one or more of the means 
of electronic funds transfer approved by the state treasurer. This section shall 
not apply to payments by districts that are required by Texas Government Code, 
sec.404.095(b) to make electronic funds transfers to the retirement system. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on November 10, 1994. 
 TRD-9450837 
  Wayne Blevins 
 Executive Director 
 Teacher Retirement System of Texas 
    Effective date: December 1, 1994 
 Proposal publication date: May 10, 1994 
 For further information, please call: (512) 370-0506 
         
                 
  TITLE 37. PUBLIC SAFETY AND CORRECTIONS 
 Part I. Texas Department of Public Safety 
  Chapter 3. Traffic Law Enforcement 
  
  Traffic Supervision 
 
  37 TAC sec.3.55 
 
  The Texas Department of Public Safety adopts an amendment to sec.3.55, 
concerning disposal of abandoned motor vehicles, without changes to the proposed 
text as published in the August 16, 1994, issue of the Texas Register  (19 
TexReg 6416). 
 The justification for the amendment is clarification to the public in the 
organizational structure of the department and consistency with the statute. 
 The department adopts the amendment which changes the title of Chief of Fiscal 
Affairs to Chief of Finance and changes the amount from $2.00 to $5.00 for 
report of vehicles reported as abandoned by garagekeepers. 
 No comments were received regarding adoption of the amendment. 
 The amendment is proposed under Texas Civil Statutes, Article 4477-9a, sec.5. 
05(c), which provide the Texas Department of Public Safety with the authority to 
collect a $5.00 fee before it may take any action on a report of a vehicle 
reported as abandoned by a garagekeeper. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on October 27, 1994. 
 TRD-9450807 
  James R. Wilson 
 Director 
 Texas Department of Public Safety 
    Effective date: December 1, 1994 
 Proposal publication date: August 16, 1994 
 For further information, please call: (512) 465-2890 
         
 Vehicle Inspection 
         
  Vehicle Inspection Station Licensing 
 
  37 TAC sec.23.17 
 
  The Texas Department of Public Safety adopts new sec.23.17, concerning vehicle 
inspection station licensing, without changes to the proposed text as published 
in the September 16, 1994, issue of the Texas Register (19 TexReg 7236). 
 The justification for this section will be enhanced credibility in the overall 
inspection program. 
 The department adopts this section which promulgates the guidelines required 
for the lease or sale of an inspection station during suspension. 
 No comments were received regarding adoption of the new section. 
 The new section is proposed under Texas Civil Statutes, 6701d, Article XV, 
sec.sec.140-142, which provide the Texas Department of Public Safety with the 
authority to adopt rules necessary for the administration of this Act. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on October 28, 1994. 
 TRD-9450806 
  James R. Wilson 
 Director 
 Texas Department of Public Safety 
    Effective date: December 1, 1994 
 Proposal publication date: September 16, 1994 
 For further information, please call: (512) 465-2890