ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 7. BANKING AND SECURITIES Part VI. Credit Union Department Chapter 91. Chartering, Operations, Mergers, Liquidations Loans 7 TAC sec.91.701 The Credit Union Commission adopts an amendment to sec.91.701, without changes to the proposed text as published in the August 26, 1994, issue of the Texas Register (19 TexReg 6692). The rule is amended to clarify the requirements for interim construction loans, and to require a title opinion and an appraisal for a loan secured by a lien other than a first lien. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 2461-11.07, which provide the Credit Union Commission with the authority to adopt reasonable rules necessary for administration of the Texas Credit Union Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 30, 1994. TRD-9451716 Robert W. Rogers Commissioner Credit Union Department Effective date: December 21, 1994 Proposal publication date: August 26, 1994 For further information, please call: (512) 837-9236 TITLE 16. ECONOMIC REGULATION Part III. Texas Alcoholic Beverage Commission Chapter 31. Administration Administrative Functions of the Commission 16 TAC sec.31.4 The Texas Alcoholic Beverage Commission adopts an amendment to sec.31.4, concerning Administrative Functions of the Commission, without changes to the proposed text as published in the October 28, 1994, issue of the Texas Register (19 TexReg 8578). This amendment deals with the allowable size of information signs that are required to be placed on licensed premises selling or serving alcoholic beverages advising customers how and where they may file a complaint under the law. The change allows the signs to be printed in a commonly used size and format so that the agency may have signs made up for purchase at a reasonable cost to persons who wish to obtain them. No comments were received regarding adoption of the amendment and no one appeared either in support or against the passage of the rule amendment. 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 December 1, 1994. TRD-9451742 Doyne Bailey Administrator Texas Alcoholic Beverage Commission Effective date: December 22, 1994 Proposal publication date: October 28, 1994 For further information, please call: (512) 206-3204 TITLE 22. EXAMINING BOARDS Part XX. Texas Board of Private Investigators and Private Security Agencies Chapter 455. Fees 22 TAC sec.455.1 The Texas Board of Private Investigators and Private Security Agencies adopts an amendment to sec.455.1, concerning Fees, without changes to the proposed text as published in the September 6, 1994, issue of the Texas Register (19 TexReg 6978). The Board has determined that the amendment is necessary in order to meet the increasing costs of criminal history background checks and to comply with the provisions of Chapter 428 of the Acts of the 73rd Legislature which requires that state agencies adopt rules that specify the amount charged for copies of public records. This rule increases the cost of fingerprint resubmission from $12.50 to $15. It also sets the charges for public records at the rate established by the General Services Commission. No comments were received regarding adoption of the amendment. The amendment is adopted under the authority of Texas Civil Statutes, Article 4413 (29bb), sec.11(a)(3). 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 30, 1994. TRD-9451690 Clema D. Sanders Executive Director Texas Board of Private Investigators and Private Security Agencies Effective date: December 21, 1994 Proposal publication date: September 6, 1994 For further information, please call: (512) 463-5545 TITLE 25. HEALTH SERVICES Part I. Texas Department of Health Chapter 49. Oral Health Improvement Services Program The Texas Department of Health (department) adopts the repeal of sec.49.16 and new sec.49.16, concerning the Oral Health Services Advisory Committee. New sec.49.16 is adopted with changes to the proposed text as published in the September 6, 1994, issue of the Texas Register (19 TexReg 6980). The repeal is adopted without changes as proposed and will not be republished. The new section is adopted for the following reasons. In compliance with Texas Civil Statutes, Article 6252-33, the department must evaluate its advisory committees to determine whether they should be continued, modified, consolidated with other committees, or abolished. The present advisory committee, the Dental Technical Advisory Committee, was approved by the Texas Board of Health (board) in 1989, pursuant to Health and Safety Code, sec.43.015. Upon review by the department, the committee's name has been changed, and its structure has been revised to create a better balance between consumer and nonconsumer representatives, and to better balance gender, minority representation, and regional representation. The new section covers applicable law, purpose, tasks, abolishment, terms of office, meetings, attendance, staff, procedures, subcommittees, statements by members, reports to the board, reimbursement of members' expenses, and the section's effective date. The new section establishes the Oral Health Services Advisory Committee to advise the state dental program, the EPSDT dental program, and the board on matters relating to operation of the state dental program and the EPSDT dental program, and to assist those programs and others in the department that require professional dental expertise. The new section ensures the department's continued compliance with Texas Civil Statutes, Article 6252-33 concerning state agency advisory committees and the department's continued access to an effective forum in which providers and consumers can offer advice to the state dental program, the EPSDT dental program, and the board. The following comments were received regarding the proposed rules. COMMENT: The commenter stated that because the new Oral Health Services Advisory Committee will advise and assist programs on issues requiring professional dental expertise, the committee should be composed of eight nonconsumer and four consumer members. RESPONSE: The department agrees and has amended subsection (f) accordingly. COMMENT: Comments from staff suggested that subsection (e) should be reworded to clarify the procedures for sunset review of the committee by the board, and that subsection (f) should be reworded to clarify the provisions concerning the committee's composition. RESPONSE: The department agrees and has amended subsections (e) and (f) accordingly. COMMENT: The commenter stated that six-year terms seemed excessive, and that the length may conflict with the two-year Medical Care Advisory Committee (MCAC) membership terms with regard to appointment of an Oral Health Services Advisory Committee member to the MCAC. RESPONSE: The department believes the term length of Oral Health Services Advisory Committee members has no direct relation to MCAC membership. No change in the proposed section was made as a result of this comment. COMMENT: The commenter stated that the section pertaining to reimbursement for expenses needs clarification so that members will understand that they will be reimbursed for expenses at the same rate as state employees. RESPONSE: The department agrees and has amended the proposed rule accordingly. Oral Health Improvement Services Program 25 TAC sec.49.16 The repeal is adopted under Texas Civil Statutes, Article 6252-33, which set standards for the evaluation of advisory committees by the agencies for which they function; Health and Safety Code, sec.43.015, which authorizes the board to appoint an advisory committee to assist the Bureau of Dental Health Services; and under Health and Safety Code, sec.12.001(b), which provides the board with authority to adopt rules for the performance of every duty imposed by law upon the board, the department, and the commissioner of health. 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 December 2, 1994. TRD-9451834 Susan K. Steeg General Counsel Texas Department of Health Effective date: December 23, 1994 Proposal publication date: September 6, 1994 For further information, please call: (512) 458-7323 The new section is adopted under Texas Civil Statutes, Article 6252-33, which set standards for the evaluation of advisory committees by the agencies for which they function; Health and Safety Code, sec.43.015, which authorizes the board to appoint an advisory committee to assist the Bureau of Dental Health Services; and under Health and Safety Code, sec.12.001(b), which provides the board with authority to adopt rules for the performance of every duty imposed by law upon the board, the department, and the commissioner of health. sec.49.16. Oral Health Services Advisory Committee. (a) The committee. An advisory committee shall be appointed under and governed by this section. (1) The name of the committee shall be Oral Health Services Advisory Committee. (2) The Health and Safety Code, sec.43.015, allows the Texas Board of Health (board) to establish the committee. (b) Applicable law. The committee is subject to Texas Civil Statutes, Article 6252-33 relating to state agency advisory committees. (c) Purpose. The purpose of the committee is to provide advice to the board on matters relating to operation of the state dental program and the EPSDT dental program, and to assist those programs and others in the department that require professional dental expertise. (d) Tasks. (1) The committee shall advise the board concerning rules relating to operation of the state dental program and the EPSDT dental program. (2) The committee shall perform the following duties: (A) act as a liaison between the department and the Medical Care Advisory Committee (MCAC) of the Health and Human Services Commission, and provide professional advisory and dental expertise to the MCAC as needed; (B) act as a liaison between the dental profession of Texas and the state and EPSDT dental programs; (C) increase participation in the state and EPSDT dental programs among Texas dentists; (D) advise/recommend items for improving the operation of the state and EPSDT dental programs; (E) review and make recommendations based on results of utilization reviews; and (F) provide advocacy representation for consumers of dental health services in Texas. (3) The committee shall carry out any other tasks given to the committee by the board. (e) Review and duration. By January 1, 1999, the board will initiate and complete a review of the committee to determine whether the committee should be continued, consolidated with another committee, or abolished. If the committee is not continued or consolidated, the committee shall be abolished on that date. (f) Composition. The committee shall be composed of 12 members appointed by the board, including four consumer representatives and eight nonconsumer representatives. (g) Terms of office. The term of office of each member shall be six years. (1) Members shall be appointed for staggered terms so that the terms of a substantially equivalent number of consumer and nonconsumer members will expire on December 31 of each even-numbered year, beginning in 1996. (2) If a vacancy occurs, a person shall be appointed to serve the unexpired portion of that term. (h) Officers. The committee shall elect a presiding officer and an assistant presiding officer at its first meeting after August 31 of each year. (1) Each officer shall serve until the next regular election of officers. (2) The presiding officer shall preside at all committee meetings at which he or she is in attendance, call meetings in accordance with this section, appoint subcommittees of the committee as necessary, and cause proper reports to be made to the board. The presiding officer may serve as an ex-officio member of any subcommittee of the committee. (3) The assistant presiding officer shall perform the duties of the presiding officer in case of the absence or disability of the presiding officer. In case the office of presiding officer becomes vacant, the assistant presiding officer will serve until a successor is elected to complete the unexpired portion of the term of the office of presiding officer. (4) A vacancy which occurs in the offices of presiding officer or assistant presiding officer may be filled at the next committee meeting. (5) A member shall serve no more than two consecutive terms as presiding officer and/or assistant presiding officer. (6) The committee may reference its officers by other terms, such as chairperson and vice-chairperson. (i) Meetings. The committee shall meet only as necessary to conduct committee business. (1) A meeting may be called by agreement of the Texas Department of Health (department) staff and either the presiding officer or at least three members of the committee. (2) Meeting arrangements shall be made by department staff. Department staff shall contact committee members to determine availability for a meeting date and place. (3) Each meeting of the committee shall be announced and conducted in accordance with the Open Meetings Act, Texas Government Code, Chapter 551. (4) Each member of the committee shall be informed of a committee meeting at least five working days before the meeting. (5) A simple majority of the members of the committee shall constitute a quorum for the purpose of transacting official business. (6) The committee is authorized to transact official business only when in a legally constituted meeting with a quorum present. (7) The agenda for each committee meeting shall include an opportunity for any person to address the committee on matters relating to committee business. The presiding officer may establish procedures for such public comment, including a time limit on each comment. (j) Attendance. Members shall attend committee meetings as scheduled. Members shall attend meetings of subcommittees to which the members are assigned. (1) A member shall notify the presiding officer or appropriate department staff if he or she is unable to attend a scheduled meeting. (2) It is grounds for removal from the committee if a member cannot discharge the member's duties for a substantial part of the term for which the member is appointed because of illness or disability, is absent from more than half of the committee and subcommittee meetings during a calendar year, or is absent from at least three consecutive committee meetings. (3) The validity of an action of the committee is not affected by the fact that it is taken when a ground for removal of a member exists. (4) The attendance records of the members shall be reported to the board. The report shall include attendance at committee and subcommittee meetings. (k) Staff. Staff support for the committee shall be provided by the department. (l) Procedures. Roberts Rules of Order, Newly Revised, shall be the basis of parliamentary decisions except where otherwise provided by law or rule. (1) Any action taken by the committee must be approved by a majority vote of the members present once a quorum is established. (2) Each member shall have one vote. (3) A member may not authorize another individual to represent the member by proxy. (4) The committee shall make decisions in the discharge of its duties without discrimination based on any person's race, creed, gender, religion, national origin, age, physical condition, or economic status. (5) Minutes of each committee meeting shall be taken by department staff. (A) A draft of the minutes approved by the presiding officer shall be provided to the board and each member of the committee within 30 days of each meeting. (B) After approval by the committee, the minutes shall be signed by the presiding officer. (m) Subcommittees. The committee may establish subcommittees as necessary to assist the committee in carrying out its duties. (1) The presiding officer shall appoint members of the committee to serve on subcommittees and to act as subcommittee chairpersons. The presiding officer may also appoint nonmembers of the committee to serve on subcommittees. (2) Subcommittees shall meet when called by the subcommittee chairperson or when so directed by the committee. (3) A subcommittee chairperson shall make regular reports to the advisory committee at each committee meeting or in interim written reports as needed. The reports shall include an executive summary or minutes of each subcommittee meeting. (n) Statement by members. The board, the department, and the committee shall not be bound in any way by any statement or action on the part of any committee member except when a statement or action is in pursuit of specific instructions from the board, department, or committee. (o) Reports to board. The committee shall file an annual written report with the board. (1) The report shall include: (A) a list of the meeting dates of the committee and any subcommittees; (B) the attendance records of its members; (C) a brief description of actions taken by the committee; (D) a description of how the committee has accomplished the tasks given to the committee by the board; (E) the status of any rules which were recommended by the committee to the board; (F) anticipated activities of the committee for the next year; and (G) any amendments to this section requested by the committee. (2) The report shall identify the costs related to the committee's existence, including the cost of agency staff time spent in support of the committee's activities. (3) The report shall cover the meetings and activities in the immediately preceding 12 months and shall be filed with the board each January. It shall be signed by the presiding officer and appropriate department staff. (p) Reimbursement for expenses. In accordance with the requirements set forth in Texas Civil Statutes, Article 6252-33, a committee member may receive reimbursement for the member's expenses incurred for each day the member engages in official committee business. (1) Committee members may not be reimbursed for compensatory per diem, unless required by law. (2) A committee member who is an employee of a state agency, other than the department, may not be reimbursed for expenses from the department. (3) A nonmember of the committee who is appointed to serve on a subcommittee may not be reimbursed for expenses from the department. (4) Each member who is to be reimbursed for expenses shall submit to staff the member's receipts for expenses and any required official forms no later than 14 days after each committee meeting. Reimbursement for expenses will be at state rates for travel, meals, and lodging. (5) Members shall submit requests for reimbursement of expenses on official state travel vouchers prepared by department staff. 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 December 2, 1994. TRD-9451800 Susan K. Steeg General Counsel Texas Department of Health Effective date: December 23, 1994 Proposal publication date: September 6, 1994 For further information, please call: (512) 458-7323 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part V. Texas Board of Pardons and Paroles Chapter 145. Parole Process Final Board Disposition 37 TAC sec.145.53 The Texas Board of Pardons and Paroles adopts the repeal of sec.145.53, concerning the final board disposition of parole revocation matters, without changes to the proposed text as published in the August 30, 1994, issue of the Texas Register (19 TexReg 6826). This section is being repealed because it is obsolete in its references to board authority to issue and withdraw pre- revocation warrants by means of a separate submission a new sec.145.53 is being adopted. No comments were received regarding adoption of the repeal. The repeal is adopted under the Code of Criminal Procedure, Article 42.18, sec.8(g), which provides the Board of Pardons and Paroles with the authority to promulgate rules consistent with the Code. 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 30, 1994. TRD-9451696 Michael F. Miller General Counsel Texas Board of Pardons and Paroles Effective date: December 21, 1994 Proposal publication date: August 30, 1994 For further information, please call: (512) 406-5613 The Texas Board of Pardons and Paroles adopts new sec.145.53, concerning the final board disposition of parole revocation matters. The new section enumerates final disposition options that may be invoked by a board panel after a revocation hearing is held, without changes to the proposed text as published in the August 30, 1994, issue of the Texas Register (19 TexReg 6826). The new section is adopted because it deletes obsolete language referring to the board's authority to issue and withdraw pre-revocation warrants, reemphasizes the board's exclusive statutory authority to grant and revoke parole, and clarifies an important tenet of due process in revocation matters-that at least one finding of violation of a condition or release must be sustained in order to support a revocation decision by the parole decision-maker. One comment was received regarding adoption of the new section. The Committee on Corrections and Parole of the Texas Criminal Defense Lawyers Association made one comment that they consider relevant to the new rule. They think that an accused releasee subject to a revocation decision should have an opportunity to review, correct, comment about, or object to the evidentiary findings and recommendations of the hearings officer before his findings and recommendations are sent to a parole panel for a final decision. This type of communication whether addressed to the hearing or to members of the board, would constitute an ex parte communication which is prohibited by 37 TAC sec.147.3. Current rules of the board provide an accused releasee with an established appeals process which avoids the needs for ex parte communication. The Board disagrees with the comment and feels that the new rule as drafted fully complies with the law. The new section is adopted under Code of Criminal Procedure, Article 42.18, sec.8(g), which provides the Board of Pardons and Paroles with the authority to promulgate rules consistent with the Code. 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 30, 1994. TRD-9451697 Michael F. Miller General Counsel Texas Board of Pardons and Paroles Effective date: December 21, 1994 Proposal publication date: August 30, 1994 For further information, please call: (512) 406-5613 Reparole After Revocation 37 TAC sec.145.61, sec.145.62 The Texas Board of Pardons and Paroles adopts the repeal of sec.145.61 and sec.145.62, concerning the eligibility for reparole after revocation, without changes to the proposed text as published in the August 30, 1994, issue of the Texas Register (19 TexReg 6827). These sections are being repealed because they have been superseded by a new sec.145.3, effective July 1, 1994, which more comprehensively deals with the topic of eligibility for parole. No comments were received regarding adoption of the repeals. The repeals are adopted under the Code of Criminal Procedure, Article 42.18, sec.8(g), which provides the Board of Pardons and Paroles with the authority to promulgate rules consistent with the Code. 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 30, 1994. TRD-9451695 Michael F. Miller General Counsel Texas Board of Pardons and Paroles Effective date: December 21, 1994 Proposal publication date: August 30, 1994 For further information, please call: (512) 406-5613 Chapter 147. Hearings General Rules for Hearings 37 TAC sec.147.27 The Texas Board of Pardons and Paroles adopts the repeal of sec.147.27, concerning objections to offers of evidence that arise during revocation hearings, without changes to the proposed text as published in the August 30, 1994, issue of the Texas Register (19 TexReg 6827). This section is being repealed because a new sec.147.27 is being adopted by the board which will streamline the process for preserving error for appeal by eliminating the filing of written exceptions to the Hearing Officer's Rulings. No comments were received regarding adoption of the repeal. The repeal is adopted under Texas Code of Criminal Procedure, Article 42.18, sec.8(g), which provides the Board of Pardons and Paroles with authority to promulgate rules consistent with the Code. 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 30, 1994. TRD-9451698 Michael F. Miller General Counsel Texas Board of Pardons and Paroles Effective date: December 21, 1994 Proposal publication date: August 30, 1994 For further information, please call: (512) 406-5613 The Texas Board of Pardons and Paroles adopts new sec.147.27, concerning the making, recording, and preservation of objections made at revocations hearings as a prerequisite for appeal, without changes to the proposed text as published in the August 30, 1994, issue of the Texas Register (19 TexReg 6827). The new section is adopted to streamline the hearings appeals process by eliminating the redundant requirement that written exceptions to a hearing officer's rulings at the revocation hearing are required to preserve error. Under the new rule, an issue is preserved for appeal once an objection is made during the hearing and ruled upon by the hearing officer. One comment was received from the Committee on Corrections and Parole of the Texas Criminal Defense Lawyers Association regarding adoption of the new section. The commenter views the new rule as an improvement and indicated that additional training on topics of evidence and procedure would be helpful for hearing officers. The board agrees that the new rule is an improvement. The new section is adopted under Texas Code of Criminal Procedure, Article 42.18, sec.8(g), which provides the Board of Pardons and Paroles with authority to promulgate rules consistent with the Code. 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 30, 1994. TRD-9451699 Michael F. Miller General Counsel Texas Board of Pardons and Paroles Effective date: December 21, 1994 Proposal publication date: August 30, 1994 For further information, please call: (512) 406-5613 Texas Department of Insurance Exempt Filing Notification Pursuant to the Insurance Code, Chapter 5,Subchapter L (Editor's Note: As required by the Insurance Code, Article 5.96 and 5. 97, the Texas Register publishes notices of actions taken by the Department of Insurance pursuant to Chapter 5, Subchapter L, of the Code. Board action taken under these articles is not subject to the Administrative Procedure Act. These actions become effective 15 days after the date of publication or on a later specified date. The text of the material being adopted will not be published, but may be examined in the offices of the Department of Insurance, 333 Guadalupe, Austin.) The Commissioner of Insurance, at a public hearing under Docket Number 2119, held at 1:30 p.m. on November 18, 1994, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street, Austin, Texas, adopted the revised Texas Commercial Lines Statistical Plan (the "Plan") as proposed by staff of the Texas Department of Insurance ("TDI") with certain changes to the proposed Plan that was filed with the Chief Clerk on October 12, 1994, and notice of the filing was published in the October 18, 1994, issue of the Texas Register (19 TexReg 8287). The Plan concerns the collection of insurance statistical data and market information for the following commercial lines of insurance: commercial general liability, commercial property, businessowners, inland marine, boiler and machinery, burglary and theft, fidelity, surety, glass, commercial auto, medical professional liability and mortgage guaranty. The Plan provides reporting instructions and defines the data elements to be reported by insurers to TDI through TDI's designated statistical agent, Acxiom Corporation, for those lines of insurance covered by the Plan. On August 16, 1993, the State Board of Insurance adopted the Texas Statistical Plan for Commercial Lines by Board Order Number 60447 ("original Plan"). The Department proposed the following revisions to the original Plan. The Plan, which incorporated these revisions, was filed with the Chief Clerk for public inspection and comment on October 12, 1994. (a) The Quarterly Miscellaneous Personal Experience Report was added. (b) All modules of the plan were modified to include an MGA Code. (c) In the General Liability Module, the Policy Limits data elements were modified to include Aggregate Policy Limit and Policy Limit Per Occurrence. (d) In the Commercial Property Module, the data element of Sprinkler Indicator was added, the Deductible requirement was modified to include separate deductibles for fire and windstorm and the data element of Protection Code was deleted. (e) In the Businessowners Module, the data elements of Sprinkler Indicator and Construction Code were added and the Deductible requirement was modified to include separate deductibles for fire, windstorm and theft. (f) In the Commercial Auto Module, the data elements of Cost Code, Age Code, Building/Lot Code, Anti-Theft Discount and Driving Record Surcharge were added. The data elements of Catastrophe Code and Accident State were added to the loss transaction record report only. The Policy Limits data element was modified to include Policy Limit Per Occurrence and Policy Limit Per Claimant. (g) In the Miscellaneous Commercial Lines Module, the Fidelity and Surety component was modified and made a separate report. The Special Programs Module was incorporated into the Miscellaneous Commercial Lines Module and is no longer a separate report. The Miscellaneous Commercial Lines Module deleted the data elements of Policy Limit, Deductible, Rating Modification and Written Exposure. (h) The Fee Schedule as described in Staff's petition was added as an appendix to the Plan. (i) The Plan also included revisions, as described in Staff's petition, to address copyright and proprietary assertions by the Insurance Services Office, Inc. (ISO). In addition to the above referenced revisions, the Department proposed the following changes to the Plan as filed with the Chief Clerk on October 12, 1994. (a) There were five typographical errors which were corrected regarding classifications on Attachment A-8 of the Quarterly Liability Experience Report. (b) In the Quarterly Commercial Automobile Experience Report the accident state data element in the Record Layout for Loss Transactions was made subject to the runoff reporting rule. (c) Section 4.05 of the Fee Schedule contained typographical errors which were corrected. The words "Private Passenger Auto were changed to "Residential Property" and the amount of $56,160 was changed to $51,106. (d) Table 4.09 of the Fee Schedule, which is the Schedule for Invoicing, contained some incorrect invoice dates. In the Residential Property and Private Passenger Auto columns the October 10, 1994 date was deleted. In the Commercial Lines column the April 10, 1995 and July 10, 1995 dates were deleted. A statement was added to Table 4.09 clarifying that the first invoice for each of the three lines may include more than one quarter's billing. (e) Section 5.03C of the Fee Schedule was amended to say that a schedule of penalties and incentives would be adopted by rule rather than be issued by the Department. The Commissioner adopted all of the revisions described in the two preceding paragraphs at the November 18, 1994 public hearing. The Commissioner has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.96, 5.97, 5.05, 5.25, 5.98, 17.25, 18.12, 19.08, and 21.69 which authorize the Commissioner to adopt statistical plans and manual rules for motor vehicle insurance, fire and allied lines of insurance, and multi-peril insurance. Articles 5.96 and 5.97 authorize the Commissioner to adopt statistical plans and manual rules under the procedures specified in those articles. Article 5.05(a) requires the Commissioner to promulgate statistical plans which shall be used by each insurer in the recording and reporting of loss experience and other necessary data for use in the evaluation of rates and rating systems. Article 5.25 authorizes the Commissioner to designate an agent to gather, audit, and compile experience of insurers writing fire and allied lines and provides that the cost thereof shall be borne by such insurers. Article 5.98 authorizes the Commissioner to adopt reasonable rules that are appropriate to accomplish the purposes of Chapter 5. Article 17.25, sec.18 authorizes the Commissioner to compel written reports from county mutual insurance companies. Article 18.12 requires underwriters of a Lloyds Insurance Company to file with the Commissioner on an annual basis such information as the Commissioner may demand. Article 19.08 requires reciprocal exchanges to report information required by the Commissioner. Article 21.69 authorizes the Commissioner to contract with a statistical entity to compile and maintain historical premium and loss data pursuant to statistical plans adopted by the Commissioner. The Plan as adopted by the Commissioner is filed with the Chief Clerk under Reference Number P-1094-24-I and is incorporated by reference by Commissioner's Order Number 94-1292. This notification is made pursuant to the Texas Insurance Code, Article 5. 96, which exempts it from the requirements of the Administrative Procedure and Texas Register Act (codified at Texas Government Code Annotated Title 10, Chapter 2001). Consistent with the Texas Insurance Code, Article 5.96(h), prior to the effective date of this action, the Texas Department of Insurance will notify all insurers writing commercial lines insurance. IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the revised Texas Commercial Lines Statistical Plan, as described herein, be adopted to become effective for all insurers writing commercial general liability, commercial property, businessowners, inland marine, boiler and machinery, burglary and theft, fidelity, surety, glass, commercial auto, medical professional liability and mortgage guaranty insurance on December 31, 1994. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Administrative Procedure Act. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 2, 1994. TRD-9451828 D. J. Powers General Counsel and Chief Clerk Texas Department of Insurance Effective date: December 31, 1994 For further information, please call: (512) 463-6328 The Commissioner of Insurance, at a public hearing under Docket Number 2120, held at 1:30 p.m. on November 18, 1994, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street, Austin, Texas, adopted the revised Texas Residential Property Statistical Plan (the "Plan") as proposed by staff of the Texas Department of Insurance ("TDI") with certain changes to the proposed Plan that was filed with the Chief Clerk on October 12, 1994, and notice of the filing was published in the October 18, 1994, issue of the Texas Register (19 TexReg 8287). The Plan concerns the collection of insurance statistical data and market information for residential property insurance. The Plan provides reporting instructions and defines the data elements to be reported by insurers to TDI through TDI's designated statistical agent, Acxiom Corporation, for those lines of insurance covered by the Plan. On October 30, 1984, the State Board of Insurance adopted the Texas Statistical Plan for Residential and Commercial Risks in Board Order Number 45750. This plan adopted pursuant to Board Order Number 45750 with the subsequent amendments is the Texas Residential Property Statistical Plan currently in effect ("original Plan"). The Department proposed the following revisions to the original Plan. The Plan, which incorporated these revisions, was filed with the Chief Clerk for public inspection and comment on October 12, 1994. (a) Foundation Exclusion/Limited Coverage Endorsement-The new Foundation Exclusion/Limited Coverage Endorsement excludes coverage for certain types of damage to foundations. New reporting instruction 26 has been added to provide guidance for reporting experience associated with the new Foundation Exclusion/Limited Coverage Endorsement. All insurers will be required to report some experience in these new fields on all premium and loss transactions, even if the insurer does not offer the exclusion. The premium record layout has been revised to accept the new data element of foundation exclusion/limited coverage endorsement code and discount amount. (b) Tenure Discounts-Some insurers offer discounts based upon the insured's tenure with the insurer. Tenure is defined as the number of continuous years a consumer has been insured by the same insurer or insurer group. New instruction 27 provides reporting instructions for premium and loss transactions to those insurers offering a tenure discount. The premium record layout has been revised to accept the new data elements of tenure discount code and discount amount. (c) Adoption of materials distributed in 1993-In December 1993, TDI distributed minor revisions of the residential property statistical plan reporting instructions to insurers. The revisions included the addition of NAIC company number as a data element, the specification of Acxiom as the designated statistical agent for collection of all residential property experience related to transactions on or after January 1, 1995, and the addition of instructions for reporting residential property statistical experience to Acxiom. (d) The Fee Schedule as described in Staff's petition has been added as an appendix to the Plan. In addition to the above referenced revisions, the Department proposed the following changes to the Plan as filed with the Chief Clerk on October 12, 1994. (a) The loss record layout was revised to clarify that the new reporting elements shall be reported on both premium and loss transactions. (b) Section 4.05 of the Fee Schedule contained typographical errors which were corrected. The words "Private Passenger Auto" were changed to "Residential Property" and the amount of $56,160 was changed to $51,106. (c) Table 4.09 of the Fee Schedule, which is the Schedule for Invoicing, contained some incorrect invoice dates. In the Residential Property and Private Passenger Auto columns the October 10, 1994 date was deleted. In the Commercial Lines column the April 10, 1995 and July 10, 1995 dates were deleted. A statement was added to Table 4.09 clarifying that the first invoice for each of the three lines may include more than one quarter's billing. (d) Section 5.03C of the Fee Schedule was amended to say that a schedule of penalties and incentives would be adopted by rule rather than be issued by the Department. The Commissioner adopted all of the revisions described in the two preceding paragraphs at the November 18, 1994 public hearing. The Commissioner has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.96, 5.97, 5.25, 5.28, 5.98 and 21.69 which authorize the Commissioner to adopt statistical plans and manual rules and gather data to determine reasonable and appropriate rates for homeowners, dwelling, farm and ranch and ranch owners insurance. Articles 5.96 and 5.97 authorize the Commissioner to adopt statistical plans manual rules under the procedures specified in those articles. Article 5.25 authorizes the Commissioner to designate an agent to gather, audit, and compile experience of insurers writing fire and allied lines and provides that the cost thereof shall be borne by such insurers. Article 5.28 authorizes the Commissioner to gather data the Commissioner deems appropriate in determining reasonable and appropriate rates. Article 5.98 authorizes the Commissioner to adopt reasonable rules that are appropriate to accomplish the purposes of Chapter 5. Article 21.69 authorizes the Commissioner to contract with a statistical entity to compile and maintain historical premium and loss data pursuant to statistical plans adopted by the Commissioner. The Plan as adopted by the Commissioner is filed with the Chief Clerk under Reference Number P-1094-25-I and is incorporated by reference by Commissioner's Order Number 94-1291. This notification is made pursuant to the Texas Insurance Code, Article 5. 96, which exempts it from the requirements of the Administrative Procedure and Texas Register Act (codified at Texas Government Code Annotated Title 10, Chapter 2001). Consistent with the Texas Insurance Code, Article 5.96(h), prior to the effective date of this action, the Texas Department of Insurance will notify all insurers writing residential property insurance. IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the revised Texas Residential Property Statistical Plan, as described herein, be adopted to become effective for all insurers writing residential property insurance on December 31, 1994. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Administrative Procedure Act. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 2, 1994. TRD-9451829 D. J. Powers General Counsel and Chief Clerk Texas Department of Insurance Effective date: Decembe 31, 1994 For further information, please call: (512) 463-6328 The Commissioner of Insurance, at a public hearing under Docket Number 2121, held at 1:30 p.m. on November 18, 1994, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street, Austin, Texas, adopted the revised Texas Private Passenger Automobile Statistical Plan (the "Plan") as proposed by staff of the Texas Department of Insurance ("TDI") with certain changes to the proposed Plan that was filed with the Chief Clerk on October 12, 1994, and notice of the filing was published in the October 18, 1994, issue of the Texas Register (19 TexReg 8288). The Plan concerns the collection of insurance statistical data and market information for private passenger automobile insurance. The Plan provides reporting instructions and defines the data elements to be reported by insurers to TDI through TDI's designated statistical agent, Acxiom Corporation, for those lines of insurance covered by the Plan. On April 18, 1994, the Commissioner of Insurance adopted the revised Texas Private Passenger Automobile Statistical Plan ("original Plan") as proposed by staff of the Texas Department of Insurance with the exception that reporting of earned premium at benchmark rates in the annual aggregate experience report for the 1994 experience year is optional for county mutual insurers. The Commissioner memorialized this official action in Commissioner's Order Number 94-0457 signed on April 26, 1994. The Department proposed the following revisions to the original Plan. The Plan, which incorporated these revisions, was filed with the Chief Clerk for public inspection and comment on October 12, 1994. (a) This revision removed the time limitation on optional reporting of Earned Premium at Benchmark Rates in the Annual Aggregate Experience Report by county mutual insurers. The original Plan provided that the reporting of Earned Premium at Benchmark Rates would be optional for county mutual insurers only for 1994 experience. (b) This revision added instructions for optional reporting of more detailed Quarterly Market Report experience within a ZIP Code. The original Plan provided for ZIP Codes as the smallest level of reporting. The new instructions allow for reporting by driver class and discount within a ZIP Code. The new instructions are designed to facilitate the operation of the territorial credit program required in the Texas Automobile Insurance Plan Association Plan of Operations. (c) The Fee Schedule described in Staff's petition was added as an appendix to the Plan. The Department, in response to comments received, amended the Plan as filed with the Chief Clerk on October 12, 1994. The changes made in response to comments were to sec.4.05, Table 4.09, and sec.5.03 of the Fee Schedule. To correct typographical errors contained in sec.4.05, the words "Private Passenger Auto" were changed to "Residential Property" and the amount of "$56, 160" was changed to "$51,106". Table 4.09, which is the Schedule for Invoicing, contained some incorrect invoice dates. In the Residential Property and Private Passenger Auto columns the October 10, 1994 date was deleted. In the Commercial Lines column the April 10, 1995 and July 10, 1995 dates were deleted. A statement was added to Table 4.09 clarifying that the first invoice for each of the three lines may include more than one quarter's billing. Section 5.03C was amended to say that a schedule of penalties and incentives would be adopted by rule rather than be issued by the Department. The Commissioner adopted all of the revisions described in the two preceding paragraphs at the November 18, 1994 public hearing. The Commissioner has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.96, 5.97, 5.05, 5.98 and 21.69, which authorize the Commissioner to adopt statistical plans and manual rules for motor vehicle insurance. Articles 5.96 and 5.97 authorize the Commissioner to adopt statistical plans and manual rules under the procedures specified in those articles. Article 5.05(a) requires the Commissioner to promulgate statistical plans which shall be used by each insurer in the recording and reporting of loss experience and other necessary data for use in the evaluation of rates and rating systems. Article 5.98 authorizes the Commissioner to adopt reasonable rules that are appropriate to accomplish the purposes of Chapter 5. Article 21.69 authorizes the Commissioner to contract with a statistical entity to compile and maintain historical premium and loss data pursuant to statistical plans adopted by the Commissioner. The Plan as adopted by the Commissioner is filed with the Chief Clerk under Reference Number A-1094-26-I and is incorporated by reference by Commissioner's Order Number 94-1293. This notification is made pursuant to the Texas Insurance Code, Article 5. 96, which exempts it from the requirements of the Administrative Procedure and Texas Register Act (codified at Texas Government Code Annotated Title 10, Chapter 2001). Consistent with the Texas Insurance Code, Article 5.96(h), prior to the effective date of this action, the Texas Department of Insurance will notify all insurers writing private passenger automobile insurance. IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the revised Texas Private Passenger Automobile Statistical Plan, as described herein, be adopted to become effective for all insurers writing private passenger automobile insurance on December 31, 1994. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Administrative Procedure Act. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 2, 1994. TRD-9451830 D. J. Powers General Counsel and Chief Clerk Texas Department of Insurance Effective date: December 31, 1994 For further information, please call: (512) 463-6328