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 10. COMMUNITY DEVELOPMENT Part V. Texas Department of Commerce Chapter 196. Tourism Advisory Committee Rules 10 TAC sec.sec.196.1-196.16 The Texas Department of Commerce adopts new sec.sec.196.1-196.16 as Tourism Advisory Rules, without changes to the proposed text as published in the June 14, 1994, issue of the Texas Register (19 TexReg 4616). Adoption of the rules will enable the public to have information concerning the role of the Tourism Advisory Committee in assisting the Texas Department of Commerce's Tourism Division in fulfilling its role of promoting Texas as a tourism destination. The rules set forth the mission of the advisory committee; the composition thereof, including qualifications for regular and ex-officio members; the minimum number of meetings; the method of reporting to the agency; and the manner and date of dissolution of the advisory committee. The rules also provide that the advisory committee is subject to the Texas Open Records Act and that the Texas Department of Commerce will provide staff to support the advisory committee. No comments were received regarding adoption of the new rules. The new rules are adopted under the authority of sec. sec.481.0044, 481.005, and 481.007 of the Texas Government Code; Article 6252-33, Texas Civil Statutes; and the Administrative Procedure Act, Chapter 2001 of the Texas Government 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 December 13, 1994. TRD-9452363 Deborah C. Kastrin Executive Director Texas Department of Commerce Effective date: January 3, 1995 Proposal publication date: June 14, 1994 For further information, please call: (512) 936-0178 TITLE 16. ECONOMIC REGULATION Part I. Railroad Commission of Texas Chapter 5. Transportation Division Subchapter B. Commercial Carriers 16 TAC sec.sec.5.21-5.46 The Railroad Commission of Texas adopts the repeal of Subchapter B, sec.sec.5. 21-5.46, without changes to the text as published in the November 8, 1994, issue of the Texas Register (19 TexReg 8825), and adopts new Subchapter EE, sec.sec.5.1001-5.1005, 5.1013-5.1015, and 5.1018-5.1020, with changes to the text published in the November 8, 1994, issue of the Texas Register (19 TexReg 8825). The text of the repeals will not be republished. The adopted action involves the repeal of all sections within Subchapter B, and the adoption of certain sections formerly within Subchapter B as new sections within Subchapter EE. Other sections within Subchapter B that are no longer applicable pursuant to federal deregulation legislation contained in H. R. 2739, enacting Title VI of the Federal Aviation Administration Authorization Act of 1994, effective January 1, 1995, are not being adopted as new sections within Subchapter EE. The federal legislation includes a federal preemption over any state's regulation of prices, routes, or services of most motor carriers performing for-hire transportation. This repeal of sec.sec.5.21-5. 46 is adopted in order to provide for the adoption of a new Subchapter B, concerning Commercial Carriers, which will contain new rules for use by the Railroad Commission of Texas. Proposed new sec.sec.5.1006, 5.1007, 5.1008, 5.1009, 5.1010, 5.1011, 5.1012, 5. 1016, 5.1017, 5.1021, 5.1022, 5.1023, 5.1024, 5.1025, and 5.1026, are not being adopted by the commission. Proposed new sec.sec.5.1001-5.005, 5.1013-5.1015, and 5.1018-5.1020 are being adopted by the commission. The text of the adopted sections will not be republished. The repeal of Subchapter B and the adoption of new Subchapter EE will permit the proposed adoption of a new subchapter B, effective January 1, 1995, concerning registration, insurance, and safety requirements for commercial carriers. A public hearing was held to receive comments on the proposed repeal and the proposed new subchapter on December 1, 1994. Comments on the proposed repeal and new Subchapter EE are summarized as follows: Two comments were received. Both comments opposed the re-enactment of Subchapter B as Subchapter EE, on the basis that the federal deregulation legislation would make all of proposed Subchapter EE obsolete. One comment specifically urged that proposed sec.5.1013, concerning contract carriers, not be adopted. The commission disagrees that all of proposed Subchapter EE is preempted by the federal deregulation legislation, because this legislation does not apply to the transportation of household goods or to motor bus companies. Several of the proposed sections in proposed Subchapter EE are applicable to transporters of household goods and to motor bus companies; consequently, the commission is adopting those sections of proposed Subchapter EE that bear on household goods transporters and motor bus companies. No groups or associations commented regarding adoption of the repeals and new Subchapter EE. Sections 5.21-5.46 within existing Subchapter B are repealed pursuant to the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorizes the commission to prescribe rules and regulations for the operations of motor carriers. 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 12, 1994. TRD-9452385 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Effective date: January 3, 1995 Proposal publication date: November 8, 1994 For further information, please call: (512) 463-7094 Subchapter EE. Operating Certificates, Permits and Licenses 16 TAC sec.sec.5.1001-5.1005, 5.1013-5.1015, 5.1018-5.1020 The new sections are adopted under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorizes the commission to prescribe rules and regulations for the operations of motor carriers. sec.5.1001. Compliance with Laws and Regulations. All motor carriers, motor transportation brokers, and motor bus companies shall conduct their operations in accordance with all applicable laws of the State of Texas and all applicable regulations of the commission. All certificates, permits, and licenses issued by the commission are subject to applicable provisions of law and of these regulations as fully as if said laws and said regulations were set forth verbatim in each certificate, permit, and license. sec.5.1002. Prohibition of Unauthorized Services. No motor carrier, motor transportation broker, or motor bus company shall perform any service or services within the jurisdiction of the commission except those which are authorized by a certificate, permit, or license issued by the commission, or specifically authorized by these regulations for the class of which it is a member. sec.5.1003. Call and Demand Service. All motor carriers shall have authority, unless expressly prohibited by their respective certificates or permits, to render, in accordance with applicable tariff provisions, call and demand service upon the routes or within the territories upon or within which they are authorized to render service by their respective certificates or permits. sec.5.1004. Use of Highways. (a) Each motor carrier and each motor bus company shall use only those highways which are authorized by its respective certificates or permits. However, motor carriers and motor bus companies which operate in both interstate and intrastate commerce are not required to secure additional authority from the commission to use in interstate commerce any highway which is included in the intrastate operating authority granted by a certificate or permit issued by the commission. (b) All motor carriers and motor bus companies duly authorized to perform operations in interstate or foreign commerce in Texas pursuant to the provisions of the Interstate Commerce Act are hereby authorized to use the highways of this state to perform interstate operations within the commercial zone of any municipality, as provided by the order of the Interstate Commerce Commission in ex parte MC-37, 49 U.S.C. sec.10526. sec.5.1005. Pick Up and Delivery Service. All motor carriers are hereby authorized, as an incident to the services authorized by their respective certificates or permits, to render pick-up and delivery services to and from located within the pick-up and delivery zones prescribed by the commission in applicable tariffs. sec.5.1013. Contract Carriers. A contract carrier permit shall not authorize the performance of transportation services for more than 15 shippers, unless it is issued to a truckload contract carrier as that term is defined in sec.5.1126 of this title (relating to Truckload Contract Carriers). A truckload contract carrier permit cannot be limited as to the number of parties or eligible contracts to be served under such permit. sec.5.1014. Duplication of Operating Authority. From and after the effective date of these regulations, no motor carrier shall be granted in any proceeding operating authority duplicative of that held by such carrier under any existing certificate or permit; provided, however, that with respect to an application for approval of the sale and transfer of operating authority which in part is duplicative of authority already possessed by the purchaser, the commission may by its order approve the sale and transfer, but provide for merger of the duplicative portion of said authority. sec.5.1015. Joinder of Motor Carrier Certificates. A specialized motor carrier may not render a coordinated or through service not authorized by any single certificate by virtue of tacking, joining, or combining operations authorized under two or more separately granted specialized motor carrier certificates, or under two or more separately granted portions of a consolidated certificate, unless after notice and hearing the commission has found that public convenience and necessity require such coordinated or through service and has specifically authorized same. sec.5.1018. Cancellation, Suspension, and Reinstatement of Intrastate Certificates or Permits. (a) Conditions under which authority may be involuntarily suspended or canceled. The intrastate certificate or permit of a motor carrier or motor bus company shall be subject to cancellation under any of the following conditions: (1) failure to provide evidence of continuous insurance or surety bond coverage as required by sec.5.181 of this title (relating to Evidence of Insurance Required); (2) failure to maintain the required continuous insurance or surety bond coverage during the time the motor carrier or motor bus company holds an intrastate certificate or permit; (3) failure to file an annual operating report as required by sec.5.81 of this title (relating to Annual Report Required); (4) failure to register equipment as required by sec.5.151 of this title (relating to Cab Cards); (5) failure to renew voluntary suspension or reactivate a suspended certificate or permit upon termination of voluntary suspension under the provisions of sec.5.307 of this title (relating to Voluntary Suspensions). (b) Notice of insurance violation. Upon receipt by the commission of notification pursuant to sec.5.185 of this title (relating to Termination) that a motor carrier or motor bus company's surety bond, policy, or certificate of insurance will terminate after 30 days, the commission shall send a letter by first class mail advising the motor carrier or motor bus company that upon termination of such insurance it must cease all operations under its certificate or permit. (c) Notice of other violation. If any of the conditions enumerated in subsection (a)(2) and (4) of this section arises, the commission shall notify the motor carrier or motor bus company that its certificate or permit is subject to cancellation. Notification that a certificate or permit is subject to cancellation shall be by publication in the Transportation Division notice. (d) Extension of time for compliance. A certificate or permit shall not be subject to cancellation for noncompliance with insurance requirements if, prior to the termination of its current insurance, the motor carrier or motor bus company files proof of insurance in accordance with sec.5.184 of this title (relating to Insurance Carrier). The time for filing such proof of insurance may be extended for 30 days, during which time the certificate or permit will remain in good standing if, prior to the termination of its current insurance, the motor carrier or motor bus company files a certificate of insurance or a copy of an insurance policy, indicating new insurance at least equal in coverage to the current minimum levels established by the commission. For good cause, the period for filing operating reports, registering equipment, or for otherwise complying with applicable laws and regulations may be extended, in writing by the director, a maximum of 60 days, during which time the certificate or permit shall remain in good standing if a request for extension is filed with the commission prior to the carrier's certificate or permit having been made subject to cancellation. (e) Return to good standing prior to cancellation. (1) A certificate or permit which is subject to cancellation under this section for failure to provide evidence of continuous insurance or surety bond coverage as detailed in subsection (a)(1) of this section may be returned to good standing by the director if, before the issuance of a commission order canceling, suspending, or amending the certificate or permit, the holder of the certificate or permit files proof that the condition which made the certificate or permit subject to cancellation under subsection (a)(1) has been corrected, together with a fee in the amount of $1.00 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. Proof that there has been no lapse in insurance or surety bond coverage, only a failure to provide the commission with evidence of this coverage, shall include: (A) an affidavit duly executed by the insurance agent; or (B) a certificate of insurance from the insurance agent; or (C) any other evidence deemed acceptable by the commission. (2) A certificate or permit which is subject to cancellation under this section for failure to maintain the required continuous insurance or surety bond coverage as detailed in subsection (a)(2) of this section may be returned to good standing by the director if, before the issuance of a commission order canceling, suspending, or amending the certificate or permit, the holder files proof that the condition which made the certificate or permit subject to cancellation under this subsection has been corrected, together with a fee in the amount of $10 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. Proof that the condition has been corrected shall include an affidavit duly executed by the holder of the certificate or permit showing that: (A) no accidents or losses have occurred; and (B) no claims have arisen; or (C) all damages, losses, and claims so arising have been satisfied. (3) A certificate or permit which is subject to cancellation under this section for failure to: (A) file an annual operating report; (B) failure to register equipment; and/or (C) failure to renew voluntary suspension or reactivate a suspended certificate or permit upon termination of voluntary suspension as detailed in subsection (a)(2)-(4) of this section, respectively, may be returned to good standing by the director if, prior to the issuance of a commission order canceling, suspending, or amending the certificate or permit, the holder of the certificate or permit files proof that the condition which made the certificate or permit subject to cancellation under subsection (a)(2)-(4) has been corrected, together with a fee in the amount of $10 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. (f) Cancellation. The commission may cancel, suspend, or amend any certificate or permit which is subject to cancellation under this section. No certificate or permit shall be canceled, suspended, or amended without notice by certified letter mailed to the carrier's current address on file with the Railroad Commission pursuant to sec.5.39 of this title (relating to Address for Receipt of Service) setting a time and place for hearing at which any interested party may appear to show cause why the certificate or permit should not be canceled. (g) Surrender of certificates and permits, cards and plates, and cessation of operations. Upon issuance of a commission final order canceling or suspending a certificate or permit, the carrier shall immediately return the certificate or permit, together with all cab cards in the carrier's possession, to the commission or to any duly authorized representative of the commission. The motor carrier or motor bus company shall concurrently cease all operations under the certificate or permit. (h) Reinstatement after cancellation. (1) Reinstatement of certificates or permits canceled before enactment of this section. Certificates and permits canceled prior to enactment of this section shall be final for all purposes. Such certificates or permits cannot thereafter be reinstated. (2) Reinstatement of certificates or permits canceled after enactment of this rule. (A) Commission may provide for reinstatement in cancellation order. The Commission may, in the order canceling a certificate or permit, provide that the certificate or permit may be reinstated if the holder files a reinstatement application within a specified period of time following issuance of the cancellation order. (B) Reinstatement authority of director. The Commission, in the order canceling a certificate or permit, may provide that the certificate be reinstated by the director. Under this subsection, the director shall reinstate a canceled certificate where the holder of the canceled certificate files with the Transportation Division: (i) an application requesting reinstatement within the period provided in subparagraph (C) of this paragraph; (ii) evidence of insurance or surety bond coverage as required by sec.5.181 of this title (relating to Evidence of Insurance Required); (iii) evidence that all fees have been paid; (iv) an equipment report as required by sec.5.151 of this title (relating to Equipment Reports); and (v) an annual operating report as required by sec.5.81 of this title (relating to Annual Report Required). (C) Deadline for filing reinstatement applications. The deadline for filing of reinstatement applications specified in the cancellation order shall not be later than two years after the issuance of the cancellation order. (D) Reinstatement fee. (i) No application for reinstatement of a certificate or permit canceled for failure to provide evidence of continuous insurance or surety bond coverage as detailed in subsections (a)(1) and (f) of this section shall be granted unless the applicant shall pay to the commission a reinstatement fee in the amount of $1.00 for each day prior to the filing of the reinstatement application during which time the certificate or permit was subject to cancellation. (ii) No application for reinstatement of a certificate or permit canceled for failure to maintain the required continuous insurance or surety bond coverage, failure to file an annual operating report, failure to register equipment, and/or failure to renew voluntary suspension or reactivate suspended certificate or permit upon termination of voluntary suspension as detailed in subsection (a)(2)-(5) of this section, respectively, and subsection (f), shall be granted unless the applicant shall pay to the commission a reinstatement fee in the amount of $10 for each day prior to the filing of the reinstatement application during which time the certificate or permit was subject to cancellation. sec.5.1019. Address for Receipt of Service. Every holder of a certificate or permit issued by the Railroad Commission shall at all times maintain on file with the commission their address for receipt of service in all Railroad Commission proceedings. The address most recently filed shall be presumed conclusively to be the current address of the holder for all purposes. sec.5.1020. Intercorporate Transportation Exemption. (a) Statutory exemption provisions. The transportation by motor vehicle for compensation by a member of a corporate family, as hereinafter defined, for other members of such corporate family of property which one member of the corporate family leases for use in its primary business, or of which one member of the corporate family is, or will become upon delivery, the bona fide owner, manufacturer, or producer, and which is produced, manufactured, or distributed as part of such corporate family member's primary business, other than a transportation business shall be authorized under a certificate of notice issued by the commission upon compliance with the terms of this section. (b) Definition of corporate family. A corporate family is defined as a group of corporations consisting of a parent corporation and all subsidiaries in which the parent corporation owns directly or indirectly a 100% interest. (c) Application for certificate of notice. Before engaging in the transportation defined in subsection (a) of this section, the parent corporation shall file with the commission the following: (1) an application for a certificate of notice in a form prescribed by the commission on behalf of the corporate member that is to provide the transportation together with a list of the subsidiaries involved and an affidavit that the parent corporation owns directly or indirectly a 100% interest in each of the participating subsidiaries; (2) a certificate of insurance which covers all motor vehicles to be used in the transportation with public liability and property damage insurance in the amounts required by sec.5.183 of this title (relating to Minimum Limits). Each certificate of insurance filed with the commission shall be accompanied by a filing fee of $25, which fee shall be in addition to that required in paragraph (4) of this subsection; (3) a statement identifying the primary business of the parent corporation and each participating subsidiary; and (4) a $100 filing fee. (d) Certificate of notice. A certificate of notice as defined in subsection (a) of this section shall be issued in the name of the corporation that provides the transportation and shall be carried in the cab of all vehicles used to conduct intercorporate transportation as defined in subsection (a) of this subsection. (e) Inspection of books and records. Any corporation electing to engage in the transportation authorized hereunder shall be deemed to have given its consent to allow authorized employees or representatives of the commission to inspect the books and records of all members of the corporate family engaging in such transportation for the sole purpose of insuring that all exempt transportation provided other members of the corporate family is in strict conformity with the provisions of this section. (f) Transfers. A certificate of notice issued under this section is not transferable. (g) Conditions under which a certificate of notice shall be canceled. A certificate of notice shall be canceled for failure to provide evidence of continuous insurance as required by sec.5.181 of this title (relating to Evidence of Insurance Required); for failure to maintain the required continuous insurance coverage during the time the certificate of notice is held; or for failure to comply with subsection (e) of this section. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 12, 1994. TRD-9452386 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Effective date: January 3, 1995 Proposal publication date: November 8, 1994 For further information, please call: (512) 463-7086 16 TAC sec.sec.5.21-5.32 The Railroad Commission of Texas adopts new sec.sec.5.21-5.32, within new Subchapter B, concerning commercial carriers. Sections 5.21, 5.22, and 5.24 are adopted with changes to the text as published in the November 8, 1994, issue of the Texas Register (19 TexReg 8836). Sections 5.23, and 5.25-5. 32 are adopted without changes to the text as published in the November 8, 1994, issue of the Texas Register (19 TexReg 8836). The new sections are adopted to address recent federal deregulation legislation contained in House Bill 2739, enacting Title VI of the Federal Aviation Administration Authorization Act of 1994, effective January 1, 1995. The federal legislation includes a federal preemption over any state's regulation of prices, routes, or services of most motor carriers performing for-hire transportation. New sec.sec.5.21-5.32, within new Subchapter B create a system of registration for commercial motor vehicles, and insurance and safety requirements, to be effective January 2, 1995. Within new sec.5.21, a new paragraph (J) is being added as an exception to the definition of "commercial motor vehicle." The new paragraph makes it clear that motor buses are not commercial motor vehicles and will not register or otherwise be subject to the provisions of new Subchapter B. The commission intends to revise its regulations concerning motor bus companies, and intends to include motor buses within those provisions rather than to treat them as commercial carriers under these proposed rules. A new paragraph (K) is being added as an exception to the definition of "commercial motor vehicle," clarifying that recreational vehicles are not commercial motor vehicles and will not be required to register or otherwise be subject to the provisions of new Subchapter B. In sec.5.22, a new subsection (b) is being added, to provide transition rules for motor carriers currently operating under certificates of public convenience and necessity, permits, or commercial motor vehicle registration with the commission under the Texas Motor Carrier Act. The new subsection (b) states that motor carriers currently operating under certificates of public convenience and necessity, permits, or registered commercial vehicles do not have to register as commercial carriers on January 1, 1995, but may continue to operate until the expiration date of their existing cab cards, after which time they will need to register as commercial carriers. Such carriers will be required to comply with all other requirements of the new Subchapter B from and after January 2, 1995. New language is also being added to sec.5.22(a) to provide that such motor carriers may continue to operate under the transition provisions of sec.5.22(b). The remaining subsections have been relettered to accommodate new sec.5.22(b). Section 5.22(e) is being deleted in its entirety, because any need for required identifying marks on power units is outweighed by the substantial expense to commercial carriers of placing such marks on each commercial motor vehicle operated by a commercial carrier and because of existing statutory requirements for markings in Texas Civil Statutes, Article 6701c-1 sec.6. Section 5.22(f) is being amended to clarify that a violation of any federal or state safety regulations is a violation of Subchapter B. Section 5.22(j) is being amended to substitute "legal agent for service of process" for "ownership" in the information to be supplied the commission by a commercial carrier, because this information would be more helpful if it becomes necessary to serve a commercial carrier with process or other legal notice. Section 5.24(c) is being amended to require minimum insurance coverage in the amount of $500,000 for combined single limit for bodily injuries to or death of all persons killed in any accident, and loss or damage in any one accident to the property of others (excluding cargo), for all commercial carriers, without regard to the weight of the commercial motor vehicles, exclusive of certain transporters of hazardous wastes, hazardous materials, and hazardous substances, as described in sec.5.24(d). Subsection (e) is being amended to clarify that notification of cancellation of insurance coverage must come from the insurer, in keeping with proposed sec.5.27. The adoption of the new sections within new Subchapter B will streamline the registration process for commercial motor vehicles and clarify for the public the registration, insurance, and safety requirements for commercial motor vehicles. In addition, the adoption of the new sections within new Subchapter B will ensure that commercial motor vehicles have adequate insurance coverage and comply with safety requirements for the public's protection. A public hearing was held to receive comments on the proposed rules on December 1, 1994. Written and oral comments were received to the proposed rules. Comments to the proposed rules are summarized as follows: (1) The definition of "commercial carrier" should be amended to exclude from the definition those commercial carriers and/or household goods carriers that operate wholly within commercial zones as defined in Subchapter P of this title, because such regulation is unnecessary, and is thus not contemplated under the federal deregulation legislation. The commenter states that the public would still be protected, because proof of insurance is required before a motor vehicle can receive its license plates. The commenter also suggests that no identifying marks be required on commercial motor vehicles operating exclusively within a commercial zone, because such constitutes unnecessary governmental regulation. (2) The definition of "commercial motor vehicle" should be changed to provide that all motor vehicles that provide for-hire courier service to the public are commercial motor vehicles, without regard to the gross weight rating of such vehicles. The commenter states that many courier services hire drivers who own and operate private passenger cars or light trucks, and that these vehicles often do not have commercial insurance coverage. The commenter points out that insurance companies are not obligated to pay claims when the such claims arise from an accident occurring during a commercial delivery. (3) The definition of "commercial motor vehicle" should not have any distinguishing criteria as regards the weight of a vehicle. The commenter states that any vehicle that is commercial in nature should be subject to the registration process, and that no exemptions should be allowed. (4) Any commercial carrier that is required to register with any other state agency in a manner equivalent to the proposed rules should be exempted from this system of registration, so as to avoid unnecessary regulation. The commenter suggests that transporters of medical waste are required to register under Texas Natural Resource Conservation Commission rules and that there are differences in the registration systems that can be easily corrected. The Texas Natural Resource Conservation Commission does not provide for insurer notification upon cancellation of coverage or administrative penalties; however, the commenter states that the Texas Natural Resource Conservation Commission would be receptive to changing its rules to accommodate these topics. (5) The minimum limits of financial responsibility should be the same for all commercial vehicles, and these limits should be equal to the federal limits or, at the very least, be $500,000. Several commenters state that the proposed minimum limits of financial responsibility for commercial carriers with a gross weight rating of 26,001-48,000 pounds are wholly inadequate. The commenters also state that the amount of damage that could be caused by a commercial motor vehicle with a gross weight rating of 48,000 pounds would be virtually identical to that of a commercial motor vehicle with a gross weight rating of 48,001 pounds, so that any distinction is arbitrary and contrary to free-market competition. Commenters also suggest that different insurance requirements will cause under-reporting of gross weight ratings by commercial carriers in an attempt to take advantage of the lower insurance requirements, thus creating a danger to the public in the form of underinsured commercial motor vehicles being operated on state roadways. One commenter also states that, for drivers with good driving records, it could cost as little as $500 to go from $20,000 worth of insurance coverage to $500,000 worth of insurance coverage. (6) Better assurances should be given to the public that a commercial carrier has adequate, active insurance coverage. Comments suggest that a commercial carrier could cancel its insurance coverage and that, despite the 30-day cancellation notice requirement from the insurance company to the commission, the public would not be able to tell that insurance has been cancelled, because the commercial carrier would still be in possession of an insurance company issued card indicating that the commercial carrier is insured. Similarly, comments suggest that a cab card could appear to be valid, leading a shipper to assume that a commercial carrier is properly insured when, in fact, such commercial carrier's insurance coverage may have been cancelled. (7) The commission should promulgate a form for insurance companies to submit to the commission regarding evidence of insurance coverage for a commercial carrier that is expressly limited to coverage for named vehicles within a policy, and that does not obligate an insurance company to cover, generally, a particular commercial carrier's commercial motor vehicles. The commenter states that federal deregulation removes the safeguards formerly afforded an insurance company by virtue of the commission's determination of a carrier's fitness to operate in regulated transportation. (8) More detailed and stringent safety regulations should be in the rules, including safety training requirements for drivers of commercial motor vehicles and equipment specifications. A commenter also states that the commission should conduct equipment inspections to ascertain safety violations. (9) Section 5.29 should be deleted, because the commission has no statutory authority to regulate insurance agents and because an international stamp program is contrary to state and federal statutes. The commenter states that there is pending litigation on this issue. As further support for deleting sec.5.29, the commenter asserts that the section will cause insurance agents to break the law and to lose legitimate business. (10) Product liability insurance coverage should be required for any commercial carrier operating homemade equipment. (11) There should be reciprocal agreements with surrounding states regarding the registration process. (12) The commission should add a rule to provide for increased personnel to enforce the proposed rules. (13) Tow trucks should not be required to register under this proposed system. A comment was also received that tow trucks should be required to register under the proposed system. (14) Interstate carriers should not be allowed to make intrastate movements in Texas using single trip insurance, but should be required to register and obtain the required insurance as specified in proposed Subchapter B. The commenter states that interstate carriers should be required to share in the cost of insurance rates that Texas businesses are required to pay. (15) Provision should be made for the transition from renewal of cab cards under the current rules to the registration process under proposed new Subchapter B. (16) The commission should add rules that would be optional to commercial carriers desiring to operate under such rules, to deal with cargo claims, credit, and uniform bill of lading provisions. (17) The federal deregulation legislation does not apply to intrastate regulation of hazardous waste; therefore, carriers of hazardous waste should be removed from the proposed system of registration and continue to be regulated as specialized motor carriers under the Motor Carrier Act. (18) The commission should not require original cab cards to be maintained in commercial motor vehicles, because this places an unwarranted financial burden on commercial carriers. The commenter states that if there is a delay in receiving a cab card, a commercial motor vehicle would be non-productive, and the commercial carrier would lose revenue. The commenter suggests that the commission use an expediting service or fax cab cards to commercial carriers. (19) Although household goods carriers are exempted from the definition of "commercial motor vehicle," the commission should also exempt such carriers from the definition of "commercial carrier," to further clarify that household goods carriers are not subject to the proposed registration system. The commenter also states that the commission should specify that if a household goods carrier also carries commodities other than household goods, it does not have to register as a commercial carrier under the proposed new Subchapter B. Other comments were received relating to the state's reaction to the federal deregulation legislation, which comments are not susceptible to being addressed within the rulemaking function of the commission. The commission disagrees with the portion of comment (1) that concerns an exemption for commercial carriers operating exclusively within a commercial zone. Metropolitan areas, which comprise commercial zones, are high-traffic areas, and the need for adequate insurance coverage and safety practices are greater in these areas than in rural, less congested areas of the state. The commission agrees with the portion of comment (1) that concerns identifying marks on vehicles, and has deleted that requirement because of a similar requirement in Texas Civil Statutes, Article 6701c-1 sec.6. The commission disagrees with comment (2), concerning classifying all motor vehicles operating in courier service as commercial motor vehicles, and with comment (3), concerning eliminating the gross weight restriction from the definition of commercial motor vehicles. Texas Civil Statutes, Article 6701d sec.139(a)(2) establishes the scope of commission jurisdiction over commercial motor vehicles as limited to commercial motor vehicles with a gross weight rating of 26,001 pounds or more, with an exception for transporters of hazardous wastes, materials, or substances. Consequently, the commission has no statutory authority to promulgate rules with respect to vehicles with gross weight ratings of 26,000 pounds or less. The commission agrees with comment (4) to the extent that it would be willing to consider future exemptions for any commercial motor vehicle that is required to comply with another state agency's requirements that are equivalent to those being proposed in Subchapter B; however, the commission has no information indicating that any group of commercial carriers is required to comply with another agency's rules that are equivalent to these proposed rules. The commission disagrees that it should provide for an exemption contemplated by comment (4), absent the opportunity to study any other agency's rules to determine whether such rules are equivalent to proposed Subchapter B. The commission agrees with comment (5), that the minimum limits of financial responsibility should be the same for all commercial carriers under this proposed Subchapter B, except for those transporting hazardous wastes, materials, or substances as set out in proposed sec.5.24(d). The commission disagrees that these limits should be made equal to the federal limits of $750, 000 at this time, because the commission has not had the opportunity to fully evaluate the fiscal impact that would occur to commercial carriers upon raising insurance rates from the current levels applicable to commercial motor vehicles with a gross weight rating of more than 48,000 pounds to the federal levels. However, the commission agrees that there is no weight-based justification for the different amounts of insurance coverage required of commercial carriers. The commission agrees that all commercial carriers, except as provided in proposed sec.5.24(d), should be subject to minimum limits of financial responsibility in the amount of $500,000. The commission agrees with comment (6), concerning cab cards. The commission agrees that a commercial carrier's insurance coverage could be cancelled and that a shipper could potentially rely on the existence of a cab card as indicating that a commercial carrier has effective insurance in the required amounts. The commission, in response to this comment, is placing a commission telephone number on each cab card issued under this proposed Subchapter B. This will allow shippers and others to contact the commission for information on whether the commission has received from an insurer any notice of cancellation of a commercial carrier's insurance coverage. The commission disagrees with comment (7), concerning amending the commission's notification form to be provided to the commission by an insurance agent upon cancellation of a commercial carrier's insurance coverage. The commission does not control to whom an insurance agent issues a policy of insurance coverage, and considers it the responsibility of the insurance agent to determine which vehicles are being insured by a commercial carrier. In addition, the commission wishes to maintain consistency with federal practices in this area, and does not have the personnel resources to accomplish the objective of the comment. The commission disagrees with comment (8), that more specific safety regulations should be set out in proposed Subchapter B, because the safety requirements of Subchapter B provide that any violation of the Motor Carrier Safety Act, Texas Civil Statutes, Article 6701d, and any violation of any rule or order adopted or issued related to the safety provisions of the Motor Carrier Safety Act, are violations of proposed Subchapter B. Also, federal law, as set out in 49 United States Code, sec.2507(c)(4), substantially restricts the authority of a state agency to enact safety regulations more stringent than the federal requirements. The commission has not been provided sufficient information to indicate either that the Motor Carrier Safety Act and its rules and orders will not adequately protect the safety needs of the public, or that such act and the implementing rules must be reprinted in proposed Subchapter B. The commission does not consider this rulemaking proceeding an appropriate context in which to address the pending litigation referred to in comment (9). The commission disagrees that it lacks authority to conduct the international stamp program or to require the participation of insurance agents as set out in proposed sec.5.29. The Third Court of Appeals, in International Insurance Agency, Inc. vs. Railroad Commission of Texas , the lawsuit referenced by the commenter, upheld the commission's authority to establish an international stamp program, including requiring certain conduct by insurance agents. No injunction prohibits the commission from acting under its valid authority pending further appeals of this ruling. The commission disagrees with comment (10), concerning adding a requirement that commercial carriers, operating homemade equipment, carry product liability insurance, because there is no statutory authority for such a requirement. The commission disagrees with comment (11), concerning a need to make a reciprocal agreement with surrounding states for proposed Subchapter B, because the provisions of proposed Subchapter B apply only to intrastate transportation, and do not purport to address interstate traffic. The commission disagrees with comment (12), stating that proposed Subchapter B should contain a rule that adds personnel to enforce the remaining provisions of proposed Subchapter B, because this is not a rulemaking function. In addition, the commission has recently restructured its Transportation Division in order to ensure that it has sufficient personnel to address concerns such as that raised by comment (12). In response to the portion of comment (13) stating that tow trucks should not be required to register under the proposed system, the commission states that the proposed Subchapter B already exempts tow trucks from the commercial carrier registration process. Instead, tow trucks will register under the Tow Truck Act, Texas Civil Statutes, Article 6687-9b. This is accomplished by exempting tow truck owners from the definition of "commercial carrier," set out in sec.5.21. The commission disagrees with the portion of comment (13) stating that tow trucks should be required to register under the proposed system, because the Tow Truck Act provides a complete system of registration, specific to the tow truck industry, that meets all the requirements of the proposed registration system. The commission agrees that, at this time, trip insurance should not be made available to interstate carriers for intrastate movements, as stated in comment (14), because currently the number of such movements does not justify the administrative cost of establishing a temporary registration program for interstate carriers making single-trip intrastate movements. The commission may consider this issue at a later time, should the need for such a program develop. The commission agrees with comment (15), and has amended proposed new Subchapter B to provide a transition rule from current rules to the new registration system. The commission disagrees with comment (16), concerning including optional rules for commercial carriers with regard to cargo claims, credit, and uniform bill of lading procedures, because such rules would not apply to all commercial carriers, absent a carrier's consent, and because such rules do not fall within the scope of proposed new Subchapter B, covering registration, insurance, and safety requirements for commercial carriers. The commission will consider any petition for rulemaking in this regard, but disagrees that the proposed subchapter is the appropriate place to locate any such rules. The commission disagrees with comment (17), that transporters of hazardous waste are exempted from the federal deregulation legislation. The commission is aware that different jurisdictions have taken conflicting positions on this issue; however, the commission regards classification of transporters of hazardous waste as commercial carriers to be within the law. In addition, the commission considers it to be in the public interest to register such transporters as commercial carriers, thus providing the public with assurances that such transporters are operating with the requisite levels of insurance coverage and according to all state and federal safety regulations. The commission disagrees with comment (18), stating that the commission should not require that original cab cards be maintained in commercial motor vehicles, because the potential for fraud is too great. If copies of cab cards are allowed to be carried in commercial motor vehicles instead of originals, a commercial carrier could reproduce a cab card and place it in a commercial motor vehicle without registering that vehicle with the commission. Similarly, use of a reproduced cab card could allow a commercial carrier to operate a commercial motor vehicle without the required insurance coverage. The commission can usually issue cab cards the same day as requested, if all other registration requirements are met. Expediting services are available to carriers for same day or overnight delivery of cab cards. The commission disagrees with comment (19)'s assertion that household goods carriers should be exempt from the definition of "commercial carrier," because to do so would allow household goods carriers operating in unregulated traffic to continue to operate outside any system of registration, depriving the public of any assurances that such carriers are operating with the requisite amount of insurance and in compliance with all state and federal safety regulations. Only transporters of household goods operating pursuant to a specialized motor carrier certificate of public convenience and necessity issued by the commission are exempt from the definition of "commercial motor vehicle." Therefore, the commission also disagrees that it needs to amend the rules to specify that a certificated household goods carrier that also transports non-household goods commodities has to register with the commission as a commercial carrier. The Sand & Gravel Motor Carriers Association commented against adoption of proposed sec.5.24, as written. The Texas Towing & Storage Association commented generally against adoption of the sections within new Subchapter B. The Texas Motor Transportation Association, Inc., commented against proposed sec.sec.5.21, 5. 23, and 5.24, as written. The Texas Tank Truck Carriers Association, Building Materials Carriers Bureau, Inc., and the Texas Association of Cement Transporters, Inc., submitted comments suggesting changes to sec.5.24, but were generally in favor of adoption of the sections within new Subchapter B. The new sections and subchapter are adopted pursuant to Texas Civil Statutes, Article 911b, sec.sec. 4(a)(1), 4(a)(12), 4(a)(13), 13, and 13aa, which authorize the commission to define and register commercial motor vehicles; to prescribe rules for safety of motor carriers and to receive reports on safety violations; to set insurance coverage amounts and to ensure that insurance coverages are maintained; and to invoke certain sanctions for violations of its rules. The new sections and subchapter are also adopted pursuant to Texas Civil Statutes, Article 6701d sec.139(c) and (j), which authorizes the commission to require insurance coverage for commercial carriers and to impose certain sanctions for failure to maintain the required insurance coverage. sec.5.21. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Cab card-A document issued by the commission, continuously maintained in a commercial vehicle, identifying that vehicle as operating under a specific commercial carrier's certificate of registration. Certificate of insurance-A certificate prescribed by and filed with the commission, in which an insurance carrier or surety company warrants that a commercial carrier for whom the certificate is filed has the minimum coverage required by sec.5.24 of this title (relating to Minimum Limits of Financial Responsibility), and that the insurance carrier or surety company will not cancel such coverage except upon notice to the commission as required by sec.5.27 of this title (relating to Termination of Insurance Coverage). Certificate of registration-A certificate issued by the commission to a commercial carrier, containing a unique number. Commercial carrier -Any person that operates or causes the operation of a commercial motor vehicle upon the public highways of the State of Texas. This definition does not include a tow truck owner as that term is defined in sec.5.802 of this title (relating to Definitions). Commercial motor vehicle-Any motor vehicle with a gross weight rating of 26,001 pounds or more, designed or used for the transportation of property. For the purposes of this title, a vehicle transporting any of the commodities listed in sec.5.24(d)(1)-(3) of this title (relating to Minimum Limits of Financial Responsibility) is a commercial motor vehicle if such vehicle has a gross weight rating of 10,000 pounds or more. All tow trucks, as that term is defined in sec.5.802 of this title (relating to Definitions) are commercial motor vehicles, regardless of the gross weight rating of the tow truck. Notwithstanding the foregoing, the following are not commercial motor vehicles: (A) a vehicle registered with the commission pursuant to sec.9.17 of this title (relating to LP-Gas Transport); (B) a farm vehicle operating within Texas with a gross vehicle rating of less than 48,000 pounds or a vehicle operating in Texas that is transporting a seed cotton module; (C) a vehicle transporting household goods as that term is defined in sec.5.251 of this title (relating to Authority), pursuant to a specialized motor carrier certificate of public convenience and necessity issued by the Commission. (D) a vehicle transporting property exclusively in interstate or foreign commerce pursuant to subchapter T of this title (relating to Single State Registration of Interstate Motor Carrier Operations); (E) a vehicle operated by any governmental entity; (F) a vehicle transporting property for an electric cooperative organized pursuant to the provisions of Texas Civil Statutes, Article 1528b; (G) a vehicle transporting property for a telephone cooperative organized pursuant to the provisions of Texas Civil Statutes, Article 1528c; (H) a vehicle transporting property for a non-profit water supply or sewer service corporation organized pursuant to the provisions of Texas Civil Statutes, Article 1434a; (I) a vehicle transporting alcoholic beverages pursuant to a wholesale permit or license issued by the Texas Alcoholic Beverage Commission under the provisions of the Texas Alcoholic Beverage Code; (J) motor buses; and (K) recreational vehicles. Commission-The Railroad Commission of Texas. Director-The director of the Transportation/Gas Utilities Division of the Railroad Commission of Texas. Any act or function herein assigned to the director by the commission may be delegated by the director. Gross weight rating-The maximum loaded weight of any combination of truck, tractor, and trailer equipment, as specified by the manufacturer of the equipment. If the manufacturer's rating is unknown, the gross weight rating is the greater of: (A) the actual weight of the equipment and its lading; or (B) the maximum lawful weight of the equipment and its lading. Person-An individual, firm, partnership, corporation, company, association, or joint stock association, or other trustees. sec.5.22. Application for Certificate of Registration. (a) Commercial carrier registration required. No commercial carrier shall operate any commercial motor vehicle upon the public streets and highways of this state unless the commission has issued a certificate of registration to such carrier, as prescribed by this subchapter, or unless the commercial carrier is operating a commercial motor vehicle pursuant to subsection (b) of this section. (b) Transitional operations. Each commercial carrier operating, on December 31, 1994, pursuant to a certificate of public convenience and necessity or a permit under the Texas Motor Carrier Act, or operating as a commercial motor vehicle registered with the commission under the Texas Motor Carrier Act, sec.4(a)(13), shall be allowed to continue to operate as a commercial carrier after January 1, 1995, until the expiration date of such carrier's current cab cards, without filing an application, registering equipment, or paying filing fees pursuant to this section. Each commercial carrier operating under this subsection shall comply with all other requirements of this subsection from January 1, 1995, through the expiration date of such carrier's current cab cards. At the expiration date of the cab cards of a commercial carrier formerly operating under a certificate of public convenience and necessity, permit, or commercial motor vehicle registration, such commercial carrier shall register its commercial motor vehicles according to the requirements of this subchapter if it desires to continue to operate as an intrastate commercial carrier. Any motor carrier operating under a certificate of public convenience and necessity, permit, or commercial motor vehicle registration, that does not wish to continue operating as an intrastate commercial carrier on or after January 1, 1995, shall notify the director on or before December 31, 1994, so that such carrier's cab cards will be cancelled and returned to the commission. (c) Form of application. The application for a certificate of registration shall be in the form prescribed by the commission. (d) Filing of application. The application for certificate of registration shall be filed with the Transportation/Gas Utilities Division of the Railroad Commission of Texas, at P.O. Box 12967, Austin, Texas 78711-2967. (e) Equipment registration and reports. Each commercial carrier is responsible for the registration of all commercial motor vehicles used in its operations, and shall identify each commercial motor vehicle by filing an equipment report prescribed by the commission. No commercial carrier shall operate any commercial motor vehicle without a valid cab card issued for that vehicle pursuant to sec.5.23 of this title (relating to Cab Cards). Any subsequent registration of equipment shall be accompanied by a supplemental equipment report and the applicable fees set out in subsection (g) of this section. Each commercial motor vehicle shall be identified by its motor vehicle identification number, make, model year, and the unit number assigned to the commercial motor vehicle by the commercial carrier. The commercial carrier's certificate of registration number shall be assigned to each motor vehicle registered by the commercial carrier. (f) Safety affidavit. Each commercial carrier shall complete, as part of the application, an affidavit stating that the commercial carrier has knowledge of and will conduct operations in accordance with all federal and state safety regulations. Each failure to conduct operations in accordance with all federal and state safety regulations shall constitute a violation of this subchapter. (g) Filing fees. (1) Commercial motor vehicle registration. The fee for registering a commercial motor vehicle shall be $10 for each vehicle. The fee will not be prorated. Subject to the provisions of subsection (i) of this section, registration of a commercial motor vehicle shall be effective for one year, unless revoked, cancelled, or suspended as provided in sec.5.32 of this title (relating to Administrative Sanctions). (2) Form of payment. All fees paid pursuant to this subchapter shall be in the form of a check or money order, payable to Texas State Treasurer, or other commercial payment method approved by the commission. (h) Incomplete applications. Any application for registration that is incomplete may be conditionally accepted by the director. Conditional acceptance shall in no way constitute approval of the application. The director shall notify the applicant of the additional information necessary to complete the application. If the applicant does not supply all necessary information within 45 days from notification by the director, the application will be dismissed and all fees will be retained. (i) Renewal of commercial motor vehicle registration. Each commercial carrier will be assigned an annual date for renewal of the registration of its commercial motor vehicles according to the last digit of the carrier's certificate number, as follows: If the last digit is: Renew before the first day of: 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 October 9 November 0 December To ensure timely renewal of registration, all renewal applications shall be received by the commission no later than 15 calendar days prior to the carrier's annual registration date. (j) Change of name, address, or legal agent for service of process. A commercial carrier shall notify the director, in writing, of any change of name, address, or legal agent for service of process no later than the effective date of the change. (k) Registered agent and address for service of process. Each commercial carrier shall have and continuously maintain with the commission for the purpose of administrative or civil service of process: (1) a registered office in Texas that may be, but need not be, the same as its principal place of business; and (2) a registered agent that is either an individual resident of Texas whose business office is identical with such registered office, a domestic corporation, or a foreign corporation authorized to transact business in Texas that has a business office identical with such registered office. sec.5.24. Minimum Limits of Financial Responsibility. (a) Filing required. Every commercial carrier shall file and maintain evidence of currently effective bodily injury and property damage liability insurance, in the amounts required by subsections (c) and (d) of this section, and such commercial carrier shall not operate any commercial motor vehicle upon the highways of this state unless the carrier has filed and the commission has accepted evidence of currently effective insurance, as prescribed by subsection (e) of this section. Operation of a commercial motor vehicle over the public highways of this state without the appropriate insurance coverage in effect and on file with the commission shall be a violation of this subchapter. (b) Submission of evidence of financial responsibility. The evidence of financial responsibility, as prescribed by subsection (e) of this section, shall be submitted prior to approval of the original application for certificate of registration required by sec.5.22 of this title (relating to Applications for Certificates of Registration). (c) Commercial carriers. The minimum limits of financial responsibility for commercial carriers are hereby prescribed as follows: combined single limit for bodily injuries to or death of all persons injured or killed in any accident, and loss or damage in any one accident to the property of others (excluding cargo) -$500,000. These minimums do not apply to certain transporters of hazardous wastes, hazardous materials, and hazardous substances, as described in subsection (d) of this section. (d) Commercial carriers of hazardous materials. For all commercial carriers operating commercial motor vehicles with a gross weight rating of 10,000 pounds or more that are required to utilize hazardous materials placarding for the transportation of a commodity specified in this subsection, the following combined single limits apply to bodily injuries to or death of all persons injured or killed in any accident, and also apply to loss or damage in any one accident to the property of others: (1) Hazardous substances, as defined in 49 Code of Federal Regulations sec.171.8, transported in cargo tanks, portable tanks, or hopper-type vehicles, with capacities in excess of 3,500 water gallons; or in bulk Classes A or B explosives, poison gas (Poison A), liquified compressed gas or compressed gas; or highway route controlled quantity radioactive materials as defined in 49 Code of Federal Regulations sec.173.403 (excluding cargo) -$5,000,000. (2) Oil listed in 49 Code of Federal Regulations sec.172.101; hazardous waste, hazardous materials and hazardous substances defined in 49 Code of Federal Regulations sec.171.8 and listed in 49 Code of Federal Regulations sec.172.101, but not mentioned in paragraphs (1) or (2) of this subsection (excluding cargo) -$1,000,000. (3) Any quantity of Classes A or B explosives; any quantity of poison gas (Poison A); or any highway route controlled quantity of radioactive materials as defined in 49 Code of Federal Regulations sec.173.403 (excluding cargo)- $5,000,000. (e) Proof required. The evidence of bodily injury and property damage liability insurance required by this section shall be in the form set forth by the commission, and shall be duly completed and executed by an authorized representative of an insurance company holding a certificate of authority to transact such kinds of insurance business in the State of Texas, or by a surplus lines insurer approved by the Texas Department of Insurance. The cancellation of a policy of insurance may be effected only by the insurance company giving 30 days' notice in writing to the commission. The 30 day notice period will be calculated from the date notice is actually received by the commission. (f) Self-insurance. Notwithstanding the provisions of this section, a commercial carrier may be authorized to self-insure for bodily injury and property damage liability in lieu of filing proof of insurance, as provided in sec.5.28 of this subchapter (relating to Qualification as Self-Insurer). 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 12, 1994. TRD-9452387 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Effective date: January 3, 1995 Proposal publication date: November 8, 1994 For further information, please call: (512) 463-7086 Subchapter W. Registration of Commercial Carriers 16 TAC sec.sec.5.501-5.508 The Railroad Commission of Texas adopts the repeal of Subchapter W, sec.sec.5. 501-5.508, concerning registration of commercial carriers, without changes to the proposed text as published in the November 8, 1994, issue of the Texas Register (19 TexReg 8841). The repeals are adopted because the commission adopted a new subchapter that addresses the insurance and registration requirements of all commercial carriers, as that term is defined in the new subchapter. The repeals will allow the accommodation of a new subchapter containing comprehensive insurance and registration provisions for commercial carriers. No comments were received regarding adoption of the repeals. The repeals are adopted pursuant to the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor carriers. 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 12, 1994. TRD-9452388 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Effective date: January 3, 1995 Proposal publication date: November 8, 1994 For further information, please call: (512) 463-7086 Part IX. Texas Lottery Commission Chapter 401. Administration of State Lottery Act Subchapter D. Lottery Game Rules 16 TAC sec.401.302 The Texas Lottery Commission adopts an amendment to sec.401.302, concerning instant game rules, without changes to the proposed text published in the August 26, 1994, issue of the Texas Register (19 TexReg 6699). The section, as amended, will provide the Lottery with the ability to determine more specifically the total prize amount to be paid for instant games and the ability to decide when game procedures for an individual game are necessary and not redundant. The section, as amended, clarifies that the director has discretion to set a maximum total cash amount or maximum payment time period for each prize level of an instant game and that the filing of individual game procedures is discretionary. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Government Code sec.466.015 which provides the Texas Lottery Commission with the authority to adopt all rules governing the establishment and operation of the lottery. 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 14, 1994. TRD-9452409 Kimberly L. Kiplin General Counsel Texas Lottery Commission Effective date: January 4, 1995 Proposal publication date: August 26, 1994 For further information, please call: (512) 323-3791 16 TAC sec.401.368 The Texas Lottery Commission adopts new sec.401.368, without changes to the proposed text as published in the August 19, 1994, issue of the Texas Register (19 TexReg 6503). The new section sets out guidelines for the use of instant ticket vending machines by lottery sales agents. The purpose of the rule is to preserve the integrity and security of the Lottery by ensuring that only instant ticket vending machines that are supplied and placed by the Texas Lottery may be used to distribute or sell instant tickets. The new section prohibits a lottery sales agent from distributing or selling Texas Lottery Instant tickets from an instant ticket vending machine, except those instant ticket vending machines supplied and placed by the Texas Lottery. The Commission believes this is necessary in order to prevent the use of instant ticket vending machines that do not meet the security and quality standards necessary to ensure the integrity of the Lottery. No comments were received regarding adoption of the new section. The new section is adopted under Texas Government Code, sec.466.015, which provides the Texas Lottery Commission with the authority to adopt rules governing the security for the Lottery and provides the Lottery Commission with the authority to adopt rules governing the method to be used in selling a ticket. 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 14, 1994. TRD-9452408 Kimberly L. Kiplin General Counsel Texas Lottery Commission Effective date: January 4, 1995 Proposal publication date: August 19, 1994 For further information, please call: (512) 371-3791 TITLE 19. EDUCATION Part I. Texas Higher Education Coordinating Board Chapter 17. Campus Planning Subchapter A. Criteria for Approval of New Construction and Major Repair and Rehabilitation 19 TAC sec.17.33 The Texas Higher Education Coordinating Board adopts an amendment to sec.17.33, concerning Criteria for Approval of New Construction and Major Repair and Rehabilitation (Provisions for Review of Projects Previously Approved), without changes to the proposed text as published in the August 16, 1994, issue of the Texas Register (19 TexReg 6412). The Coordinating Board asked the staff to recommend modifications to the rules that would allow the Campus Planning Committee to act for the Board in giving final approval to auxiliary enterprise construction projects, as well as projects that would renovate educational and general buildings and cost less than $3 million. The proposed change would give the Campus Planning Committee the same options it has under the special approval procedure in rule 17.46, which are to approve a request or refer it to the next meeting of the Coordinating Board. Comments were received stating that there is some confusion on the requirement to award contracts on a project approved by the Board within one year, or be subject to another review by the Board. It was suggested that we clarify whether this meant different contracts on the same project all had to be awarded within one year or that the initial contract had to be awarded by this time. Comments were for the changes and were received from the University of Houston System, and the University of North Texas. Comments received fell outside of the scope of rule changes being considered at the October meeting. We agreed that these were items that should be considered as possible rule changes. We have communicated to the people making comments on our intent to consider these as possible rule changes, and they were satisfied with that. The amendment is adopted under Texas Education Code, Chapter 61, Subchapter B, Administrative Provisions, sec.61.027, which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning Criteria for Approval of New Construction and Major Repair and Rehabilitation (Provisions for Review of Projects Previously Approved). 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 12, 1994. TRD-9452365 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Effective date: January 3, 1995 Proposal publication date: August 16, 1994 For further information, please call: (512) 483-6160 Subchapter B. Application for Approval of New Construction and Major Repair and Rehabilitation 19 TAC sec.sec.17.42-17.44, 17.46 The Texas Higher Education Coordinating Board adopts amendments to sec.sec.17. 42-17.44 and 17.46, concerning Application for Approval of New Construction and Major Repair and Rehabilitation, without changes to the proposed text as published in the August 16, 1994, issue of the Texas Register (19 TexReg 6412). The Coordinating Board asked the staff to recommend modifications to the rules that would allow the Campus Planning Committee to act for the Board in giving final approval to auxiliary enterprise construction projects, as well as projects that would renovate educational and general buildings and cost less than $3 million. Section 17.42 would eliminate language that has led some institutions not to provide data on project funding and levels for first stage review of proposals to construct new educational and general space. Section 17. 43 will ensure that proposing institutions intend to comply with the state's statutory requirements for the elimination of architectural barriers to persons with disabilities. Section 17.44 would make it congruent with the change being made in sec.17.43 to eliminate the need for a certificate of compliance with accessibility requirements. Comments received stated that they would like to see the two stage review and approval process for new construction adding educational and general space be modified so that two stage review is required only when a project would result in an excess of space above the Coordinating Board space standards. Comments were for the changes and were received from the University of Houston System and the University of North Texas. Comments received fell outside of the scope of rule changes being considered at the October meeting. We agreed that these were items that should be considered as possible rule changes. We have communicated to the people making comments on our intent to consider these as possible rule changes, and they were satisfied with that. The amendments are adopted under Texas Education Code, Chapter 61, Subchapter B, Administrative Provisions, sec.61.027, which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning Application for Approval of New Construction and Major Repair and Rehabilitation. 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 12, 1994. TRD-9452366 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Effective date: January 3, 1995 Proposal publication date: August 16, 1994 For further information, please call: (512) 483-6160 TITLE 22. EXAMINING BOARDS Part IV. Texas Cosmetology Commission Chapter 85. Public Records 22 TAC sec.85.1 The Texas Cosmetology Commission adopts new sec. 85.1, concerning Charges for Public Records, without changes to the proposed text as published in the November 1, 1994, issue of the Texas Register (19 TexReg 8661) This rule is being adopted to comply with House Bill 1009, 73rd Legislative Session, amended the Texas Open Records Act to require each state agency to specify, by rule, the charges the agency will make for copies of public records. The bill calls for a state agency to establish a charge for a copy of public records that is equal to the full cost to the agency in providing the copy. This bill also requires the General Services Commission to specify by rule the methods and procedures determining the amounts that the agency should charge to recover the full cost to the agency in providing copies of public records. This rules defines the charges for public records. No comments were received regarding adoption of the new rule. The new rule is adopted under Texas Civil Statutes, Article 8451a, sec.4(a) which provide the Texas Cosmetology Commission with authority to "issue rules consistent with this Act after a public hearing", to protect the public's health and welfare. 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 12, 1994. TRD-9452312 Dick G. Strader Executive Director Texas Cosmetology Commission Effective date: January 2, 1995 Proposal publication date: November 1, 1994 For further information, please call: (512) 454-4674 Part XVI. Texas State Board of Physical Therapy Examiners Chapter 329. Licensing Procedure 22 TAC sec.329.5, sec.329.6 The Texas State Board of Physical Therapy Examiners adopts amendments to sec.329.5, concerning Licensing Procedures for Foreign-Trained Applicants, and sec.329.6, concerning Licensure of Persons Currently Licensed in Other States, the District of Columbia, or Territories of the United States. Section 329.6 is adopted with changes to the proposed text as published in the November 4, 1994, issue of the Texas Register (19 TexReg 8747). Section 329.5 is adopted without changes and will not be republished. Section 329.5 is being amended to establish a process that requires credentialing agencies to formally agree to follow the board's guidelines. Section 329.6 is being amended to define the term "equivalent program" for applicants seeking licensure in Texas who already hold a valid license in another state or territory. These amendments will establish procedures for more consistent review and evaluation of an applicant's education credentials. No comments were received regarding adoption of the amendments. The amendments are adopted under the Physical Therapy Practice Act, Texas Civil Statute, Article 4512e, which provide the Texas State Board of Physical Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act. sec.329.6. Licensure of Persons Currently Licensed in Other States, the District of Columbia, or Territories of the United States. (a) Qualifications for provisional licensure. (1)-(3) (No change.) (4) Determination of substantially equivalent. Determination by the board as to whether a state, the District of Columbia or a territory of the United States maintains professional standards substantially equivalent to those set forth by the Act, will be based on whether at the time the applicant was licensed in the state: (A) (No change.) (B) An applicant for a license as a physical therapist must present evidence satisfactory to the board that the applicant has completed an accredited program or equivalent program in physical therapy education. "Equivalent program" means that the applicant shall provide official documentation from a board-approved educational credentials review agency and completion of a minimum of 60 academic semester credits or the equivalent from an accredited institution of higher learning. An applicant for a physical therapist assistant license must present evidence satisfactory to the board that the applicant has completed an accredited physical therapist assistant program or an accredited physical therapy program. (C) (No change.) (5)-(9) (No change.) (b)-(c) (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 December 13, 1994. TRD-9452380 Nina Hurter Interim Executive Director Texas State Board of Physical Therapy Examiners Effective date: January 3, 1995 Proposal publication date: November 4, 1994 For further information, please call: (512) 443-8202 TITLE 28. INSURANCE Part II. Texas Workers' Compensation Commission Chapter 168. Back Injury Prevention Training Program 28 TAC sec.168.1, sec.168.2 The Texas Workers' Compensation Commission adopts the repeal of sec.168.1 and sec.168.2, concerning the Back Injury Prevention Training Program, without changes to the proposed text as published in the August 16, 1994, issue of the Texas Register (19 TexReg 6415). The repeals delete obsolete rules from the agency's body of rules and from the Texas Administrative Code. The rules were part of a two-year pilot program authorized by the Texas Workers' Compensation Act, sec.7.07. That section limited the program to a period of two years and therefore, the program is no longer in effect. No comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Labor Code, sec.402.061, which authorizes the commission to adopt rules necessary to administer the Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 14, 1994. TRD-9452412 Susan Cory General Counsel Texas Workers' Compensation Commission Effective date: January 20, 1995 Proposal publication date: August 16, 1994 For further information, please call: (512) 440-3700 TITLE 30. ENVIRONMENTAL QUALITY Part I. Texas Natural Resource Conservation Commission Chapter 331. Underground Injection Control The Texas Natural Resource Conservation Commission (TNRCC) adopts the repeal of sec.331.45 and amendments to sec. sec.331.2, 331.9, 331.36, 331.43-331.45, 331.61, 331.63-331.66, 331.68, 331.121, 331.122, 331.142-331.144, 331.163, 331. 164, 331.167, 331.171, and new 331.15, which constitute Subchapters A-D, G, I, and J, concerning underground injection control. Sections 331.2, 331.45, 331. 63, and 331.65 are adopted with changes to the proposed text as published in the June 28, 1994, issue of the Texas Register (19 TexReg 5018). Sections 331.9, 331.15, 331.36, 331.43, 331.44, 331.61, 331.64-331.66, 331.68, 331.121, 331.122, 331.142-331.144, 331.163, 331.164, 331.167, and 331.171 are adopted without changes and will not be republished. As a result of public comments, proposed new sec.331.62 is being withdrawn from consideration, as is the proposed repeal of existing sec.331.62. The commission will repropose new sec.331.62 for public comment. The comment period for the June 28, 1994, proposals ended July 28, 1994. Comments on the proposed text were received from Terra Dynamics, Inc., the Texas Chemical Council, DuPont, Envirocorp, ECO Solutions, Inc., Merichem Company, Sterling Chemicals, and individual concerned citizens. All of the commenters were partially in favor of and partially opposed to adoption of the rules. One commenter expressed concern with respect to the proposed definition of "new waste stream" in sec.331.2, claiming that changes in waste streams due to process "upsets", mechanical problems and emergencies would be considered new waste streams and requested that the language be changed so that changes which fall outside of the ranges submitted to the Commission not be considered a new waste stream. The proposed language will be changed to indicate that wastes not permitted are considered new wastes. Variations in composition can be addressed in the permit application by noting the potential concentration ranges. Several respondents stated that according to the definition in sec.361.003(5) of the Health and Safety Code, hazardous waste management facilities which accept wastes generated on-site, or from captured or "sister" facilities are considered non-commercial facilities, whether or not there is a charge. To be consistent, the definition of non-commercial well in sec.331.2 has been corrected by deleting the "for a charge" provision. Section 331.45 is changed for purposes of clarification. A few respondents expressed concern over proposed new sec.331.45 (regarding Certification) and commented that the language should require the executive director to approve any well built in compliance with the regulations and the permit. The commission responds that the term "shall" expresses willingness, promise or intention, while the term "may" confers a right, privilege or power. The term "must" is used when an obligation to act is imposed. By using the term "may", the proposed language indicates that the executive director has the power or authority to approve or disapprove the construction of a well, based upon the executive director's determination of whether the well is protective of human health and the environment and is in compliance with regulations, the permit and official guidance. One respondent suggested that since a permittee has made a substantial investment in the permit application and the construction of the well, the agency should assure a permittee that any well constructed in accordance with the regulations and permit will be approved for operation. However, that determination will continue to be made by the executive director or his/her designee. Section 331.65 is changed to reflect a typographical error in the proposed text. A bracket denoting deleted text was invadvertenly omitted; the commission wishes to clarify any possible confusion about the language being deleted from the rule. As previously mentioned, sec.331.62 is being withdrawn from consideration. However, in the interest of avoiding confusion the commission wishes to address comments concerning the section. Several respondents suggested alternative language for sec.331.62(7), regarding the qualifications of persons who perform constructions and workovers. The intent was to ensure that the person who was ultimately responsible for the work was a registered professional engineer. The commission intends to propose language that should satisfy that concern. Several respondents expressed concern over sec.331.62(3)(A), which was based on the Environmental Protection Agency (EPA) Groundwater Program Guidance Number 22. Concerns centered around a provision requiring written approval to change the setting and cementing of surface casing. One respondent suggested that the operator never be allowed to set surface casing shallower than required by the permit and that if the operator wished to set the surface casing deeper than stated in the permit that such action be allowed by rule and permit. Other respondents expressed concern with the perceived down-time while waiting for approval. The commission intends to propose language stating that no approval is necessary to set surface casing deeper than according to the permit. Additional language will state that the setting of surface casing shallower than indicated on the permit will not be authorized. Only changes to the cementing plan for the surface casing must be authorized in writing. Since a member of the UIC Team is either on location or on call (with access to a FAX machine), written approval can be given quickly, with a minimum amount of down-time for the rig. Several commenters expressed approval of the prohibition of fluid seal systems. Most comments on proposed new sec.331.62 concerned the proposal to increase the minimum volume of cement pumped during the cementing of casing. The majority of respondents pointed out that the excess cement would cause problems with multi- stage cementing, and would not necessarily improve cementing in single-stage completions. Several respondents suggested alternative requirements to improve the chances for a good completion. The consensus of the respondents was that completion problems were best prevented by prudent engineering practices, good drilling mud programs and controlled hydraulics to ensure the drilling of a good hole without washouts and deviations. If a hole is poorly drilled, little can be done later in the way of cementing techniques to remedy the situation. Several commenters recommended that operators be required to use at least a four-arm caliper when measuring the diameter of the hole. A caliper with a minimum of four arms would give more detailed information regarding washouts than a one-arm caliper would, and would provide more accurate measurements by which to calculate the amount of cement needed to fill the space between the casing and the formation. The minimum amount of cement will not be increased from 120% to 150%, except in cases where the caliper indicates a washout of the formation. Upon further review, staff agrees that additional cement cannot compensate or correct a poorly designed and drilled hole. Prudent engineering practices will be incorporated in the construction standards in proposed new sec.331.62. As recommended by several commenters, 150% cement will be required over a washout interval. Operators will be required to use a two-dimensional (minimum 4-arm) caliper to measure the radius of the borehole. The new requirements emphasize standard engineering practices to be used in the drilling of all wells. Additional standards will be put forth as guidance documents, since geologic conditions vary greatly across the state. Operators also will be required to follow appropriate guidance. Several respondents complained about the removal of the three-month extension for annual mechanical integrity tests in sec.331.64. TNRCC has received warnings from EPA Region VI that the current language was in violation of federal regulations. The commission therefore changes the language to mirror the federal language. One respondent disagreed with the waste analysis plan requirement of sec.331. 64(a)(1)-(4) applying to all Class I injection wells. The respondent felt that since a waste analysis plan is required under 40 Code of Federal Regulation (CFR) sec.146.68(a) only for hazardous Class I injection wells, that non- hazardous Class I injection wells should be exempt. It should be noted that all Texas Class I operators are already required by sec.331.64(a) to "sample and analyze injection fluids at a frequency sufficient to yield representative data of the characteristics". The proposed language clarifies how that sampling is to be done. The owner/operator is allowed great flexibility with regards to developing the waste analysis plan, including parameters to be tested and testing methods and frequency. The intent of the commission is to ensure that all facilities are knowledgeable about their waste streams and about any changes that might occur due to process or operational changes at the facility. One respondent wanted the term "certification" to remain in sec.331.163 and sec.331.164, concerning approval of waste disposal in salt caverns, rather than the term "approval" since the respondent felt that "approval" was too subjective a term, while "certification" was objective. There are no plans to change the approval/certification process. "Certification" can have different connotations, including that the review was done by a registered professional engineer. "Approval" on the other hand, does not imply that the review was done by a registered professional engineer, but that the submittal was reviewed, found to be in compliance, and the operator is authorized to begin injection. "Approval" is the term that EPA uses for this process in the UIC program. No respondent complained about "approval" being used in the context of regular UIC wells, while several concurred with the proposed new rule. There is no difference in the post-construction review process between regular Class I injection wells and Class I salt cavern disposal wells. Therefore, "approval" will be used for consistency purposes. Several respondents expressed approval of the proposed amendments to sec.sec.331.144-331.147, concerning financial assurance requirements. Subchapter A. General Provisions 30 TAC sec.sec.331.2, 331.9, 331.15 The new and amended sections are adopted under the Texas Water Code, sec.5. 103 and sec.5.105, which authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to carry out the powers and duties under the provisions of the Texas Water Code, Chapter 27, and other laws of this state; and under the Texas Health and Safety Code, sec.361.017 and sec.361. 024, which further authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to manage industrial solid and municipal hazardous wastes. sec.331.2. Definitions. The following words and terms, when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise. Captured facility -A manufacturing or production facility that generates an industrial solid waste or hazardous waste that is routinely stored, processed, or disposed of on a shared basis in an integrated waste management unit owned, operated by, and located within a contiguous manufacturing complex. Commercial UIC Class I well facility-Any waste management facility that accepts hazardous or nonhazardous industrial solid waste, for disposal in a UIC Class I injection well, for a charge, except a captured facility or a facility that accepts waste only from other facilities owned or effectively controlled by the same person. Commercial well -A UIC Class I injection well which disposes of hazardous or nonhazardous industrial solid wastes, for a charge, except for a captured facility or a facility that accepts waste only from facilities owned or effectively controlled by the same person. New waste stream -A waste stream not permitted. Non-commercial UIC Class I well facility-A UIC Class I permittee which operates only non -commercial wells. Non-commercial well -A UIC Class I injection well which disposes of wastes disposes of wastes that are generated on-site, at a captured facility or from other facilities owned or effectively controlled by the same person. Transmissive fault or fracture-A fault or fracture that has sufficient permeability and vertical extent to allow fluids to move between formations. Underground injection control (UIC)-The program under the federal Safe Drinking Water Act, Part C, including the approved Texas state program. 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 12, 1994. TRD-9452293 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: June 28, 1994 For further information, please call: (512) 239-6087 Subchapter B. Jurisdiction Over In Situ Uranium Mining 30 TAC sec.331.36 The amendment is adopted under the Texas Water Code, sec.5.103 and sec.5. 105, which authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to carry out the powers and duties under the provisions of the Texas Water Code, Chapter 27, and other laws of this state; and under the Texas Health and Safety Code, sec.361.017 and sec.361.024, which further authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to manage industrial solid and municipal hazardous wastes. 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 12, 1994. TRD-9452294 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: June 28, 1994 For further information, please call: (512) 239-6087 Subchapter C. General Standards and Methods 30 TAC sec.sec.331.43-331.45 The amendments are adopted under the Texas Water Code, sec.5.103 and sec.5. 105, which authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to carry out the powers and duties under the provisions of the Texas Water Code, Chapter 27, and other laws of this state; and under the Texas Health and Safety Code, sec.361.017 and sec.361.024, which further authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to manage industrial solid and municipal hazardous wastes. sec.331.45. Executive Director Approval of Construction and Completion. The executive director may approve or disapprove the construction and completion for an injection well or project. In making a determination whether to grant approval, the following shall be reviewed for compliance with the standards of this chapter, and established TNRCC guidance: (1) for Class I wells, other than salt cavern disposal wells and associated salt caverns: (A) actual as-built drilling and completion data on the well; (B) all logging and testing data on the well; (C) a demonstration of mechanical integrity; (D) anticipated maximum pressure and flow rate at which the permittee will operate; (E) results of the injection zone and confining zone testing program as required in sec.331.62(f) of this title (relating to Construction Standards) and sec.331.65(a) of this title (relating to Class I Wells); (F) the actual injection procedure; (G) the compatibility of injected wastes with fluids in the injection zone and minerals in both the injection zone and the confining zone and materials used to construct the well; (H) the calculated area of review and cone of influence based on data obtained during logging and testing of the well and the formation, and where necessary, revisions to the information submitted under sec.331.121 of this title (relating to Class I Wells); (I) the status of corrective action required for defective wells in the area of review; (J) compliance with the casing and cementing performance standard in sec.331.62(d) of this title (relating to Construction Standards), and where necessary, changes to the permit to provide for additional testing and/or monitoring of the well to insure the continuous attainment of the performance standard; and (K) compliance with the cementing requirements in sec.331.62(e). (2) for salt cavern disposal wells and associated salt caverns: (A) actual as-built drilling and completion data on the well; (B) all logging, coring, and testing program data on the well and salt pilot hole; (C) a demonstration of mechanical integrity of the well; (D) the anticipated maximum wellhead and casing seat pressures and flow rates at which the well will operate during cavern development and cavern waste filling; (E) results of the salt cavern injection zone and salt cavern confining zone testing program as required in sec.331.163(e)(3) of this title (relating to salt cavern solid waste disposal wells). (F) the injection and production procedures for cavern development and cavern waste filling; (G) the compatibility of injected materials with the contents of the salt cavern injection zone and the salt cavern confining zone, and with the materials of well construction; (H) land subsidence monitoring data and groundwater quality monitoring data, including determinations of baseline conditions for such monitoring throughout the area of review; (I) the status of corrective action required for defective wells in the area of review; (J) actual as-built specifications of the well's surface support and monitoring equipment; and (K) conformity of the constructed well system with the plans and specifications of the permit application. (3) for Class III wells: (A) logging and testing data on the well; (B) a satisfactory demonstration of mechanical integrity for all new wells, excluding monitor wells; (C) anticipated operating data; (D) the results of the formation testing program; (E) the injection procedures; and (F) the status of corrective action required for defective wells in the area of review. 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 12, 1994. TRD-9452296 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: June 28, 1994 For further information, please call: (512) 239-6087 Subchapter C. General Standards and Methods 30 TAC sec.331.45 The repeal is adopted under the Texas Water Code, sec.5.103 and sec.5.105, which authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to carry out the powers and duties under the provisions of the Texas Water Code, Chapter 27, and other laws of this state; and under the Texas Health and Safety Code, sec.361.017 and sec.361.024, which further authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to manage industrial solid waste and municipal hazardous wastes. 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 12, 1994. TRD-9452295 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: June 28, 1994 For further information, please call: (512) 239-6087 Subchapter D. Standards for Class I Wells Other than Salt Cavern Solid Waste Disposal Wells 30 TAC sec.sec.331.61, 331.63-331.66, 331.68 The amendments are adopted under the Texas Water Code, sec.5.103 and sec.5. 105, which authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to carry out the powers and duties under the provisions of the Texas Water Code, Chapter 27, and other laws of this state; and under the Texas Health and Safety Code, sec.361.017 and sec.361.024, which further authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to manage industrial solid and municipal hazardous wastes. sec.331.63. Operating Requirements. (a) All Class I wells shall be operated to prevent the movement of fluids that could result in the pollution of an underground source of drinking water (USDW) and to prevent leaks from the well into unauthorized zones. (b) Injection pressure at the wellhead shall not exceed a maximum which shall be calculated so as to assure that the pressure in the injection zone during injection does not initiate new fractures or propagate existing fractures in the injection zone, initiate new fractures or propagate existing fractures in the confining zone, or cause movement of fluid out of the injection zone that may pollute USDWs, and fresh or surface water. (c) Injection between the outermost casing protecting USDWs and fresh or surface water and the wellbore is prohibited. (d) The annulus between the tubing and long string casing shall be filled with a non-corrosive or corrosion-inhibiting fluid approved by the commission. The annulus pressure shall be at least 100 psi greater than the injection tubing pressure to prevent leaks from the well into unauthorized zones and to detect well malfunctions, unless the executive director determines that such a requirement might harm the integrity of the well. (e) Monthly average and maximum instantaneous rates of injection, and annual and monthly volumes of injected fluids shall not exceed limits specified by the commission. (f) All gauges, pressure sensing, and recording devices shall be tested and calibrated quarterly. (g) Any chemical or physical characteristic of the injected fluids shall be maintained within specified permit limits for the protection of the injection well, associated facilities, and injection zone and to ensure proper operation of the facility. (h) The permittee shall notify the executive director before commencing any workover operation or corrective maintenance which involves taking the injection well out of service. The notification shall be in writing and shall include plans for the proposed work. The executive director may grant an exception of the prior written notification when immediate action is required. Approval by the executive director shall be obtained before the permittee may begin any workover operation or corrective maintenance that involves taking the well out of service. Pressure control equipment shall be installed and maintained during workovers which involve the removal of tubing. (i) Mechanical integrity shall be demonstrated following any major operations which involve removal of the injection tubing, recompletions, or unseating of the packer. (j) For workovers or testing operations on hazardous waste disposal wells, all hazardous fluids shall be flushed from the wellbore with a non-hazardous fluid before conducting any portion of the operations which would result in the exposure of the hazardous wastes to the environment or the public. (k) An owner or operator of a Class I well who ceases injection operations temporarily may keep the well open provided he: (1) has received written authorization from the executive director; and (2) has described actions or procedures, satisfactory to the executive director, that the owner or operator will take to ensure that the well will not endanger USDWs, and fresh or surface water during the period of temporary disuse. These actions and procedures shall include compliance with the technical requirements applicable to active injection wells, including mechanical integrity. (l) The owner or operator of a well that has ceased operations for more than two years shall notify the executive director 30 days prior to resuming operation of the well. (m) The owner or operator shall maintain mechanical integrity of the injection well at all times. sec.331.65. Reporting Requirements. (a) Pre-operation reports. For new wells, including wells converting to Class I status, the requirements are as follows. (1) Completion report. Within 90 days after the completion or conversion of the well, the permittee shall submit a Completion Report to the executive director. The report shall include a surveyor's plat showing the exact location and giving the latitude and longitude of the well. The report will also include a certification that a notation on the deed to the facility property or on some other instrument which is normally examined during title search has been made stating the surveyed location of the well, the well permit number, and its permitted waste streams. The permittee shall also include in the report, the following, prepared and sealed by a professional engineer with current registration pursuant to the Texas Engineering Practice Act: (A) actual as-built drilling and completion data on the well; (B) all logging and testing data on the well; (C) a demonstration of mechanical integrity; (D) anticipated maximum pressure and flow rate at which the permittee will operate; (E) results of the injection zone and confining zone testing program as required in sec.331.62 of this title (relating to Construction Standards) and subsection (a) of this section; (F) adjusted formation pressure increase calculations, fluid front calculations and updated cross-sections of the confining and injection zones, based on the data obtained during construction and testing; (G) the actual injection procedure; (H) the compatibility of injected wastes with fluids in the injection zone and minerals in both the injection zone and the confining zone and materials used to construct the well; (I) the calculated area of review and cone of influence based on data obtained during logging and testing of the well and the formation, and where necessary, revisions to the information submitted under sec.331.121 of this title (relating to Class I Wells); (J) the status of corrective action required for defective wells in the area of review; (K) a Well Data Report on forms provided by the executive director; (L) compliance with the casing and cementing performance standard in sec.331.62(4) of this title; and (M) compliance with the cementing requirements in sec.331.62(5) of this title. (2) Local authorities. The permittee shall provide written notice to the executive director, in a manner specified by the executive director, that a copy of the permit has been properly filed with the health and pollution control authorities of the county, city, and town where the well is located. (3) Start-up date and time. The permittee shall notify the executive director in writing of the anticipated well start-up date. Compliance with all pre- operation terms of the permit must occur prior to beginning injection operations. The permittee shall notify the executive director at least 24 hours prior to beginning drilling operations. (4) Approval of construction and completion. Prior to beginning operations, the permittee must obtain written approval from the executive director, according to sec.331.45 of this title (relating to Executive Director Approval of Construction and Completion). (b)-(c) (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 December 12, 1994. TRD-9452297 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: June 28, 1994 For further information, please call: (512) 239-6087 Subchapter G. Consideration Prior to Permit Issuance 30 TAC sec.331.121, sec.331.122 The amendments are adopted under the Texas Water Code, sec.5.103 and sec.5. 105, which authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to carry out the powers and duties under the provisions of the Texas Water Code, Chapter 27, and other laws of this state; and under the Texas Health and Safety Code, sec.361.017 and sec.361.024, which further authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to manage industrial solid and municipal hazardous wastes. 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 12, 1994. TRD-9452298 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: June 28, 1994 For further information, please call: (512) 239-6087 Subchapter I. Financial Responsibility 30 TAC sec.sec.331.142-331.144 The amendments are adopted under the Texas Water Code, sec.5.103 and sec.5. 105, which authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to carry out the powers and duties under the provisions of the Texas Water Code, Chapter 27, and other laws of this state; and under Texas Health and Safety Code, sec.361.017 and sec.361.024, which further authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to manage industrial solid and municipal hazardous wastes. 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 12, 1994. TRD-9452299 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: June 28, 1994 For further information, please call: (512) 239-6087 Subchapter J. Standards for Class I Salt Cavern Solid Waste Disposal Wells 30 TAC sec.sec.331.163, 331.164, 331.167, 331.171 The amendments are adopted under the Texas Water Code, sec.5.103 and sec.5. 105, which authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to carry out the powers and duties under the provisions of the Texas Water Code, Chapter 27, and other laws of this state; and under the Texas Health and Safety Code, sec.361.017 and sec.361.024, which further authorizes the Texas Natural Resource Conservation Commission to promulgate rules necessary to manage industrial solid and municipal hazardous wastes. 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 12, 1994. TRD-9452300 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: June 28, 1994 For further information, please call: (512) 239-6087 Chapter 334. Underground and Aboveground Storage Tanks The Texas Natural Resource Conservation Commission (TNRCC) adopts amendments to sec.sec.334.49, 334.51, 334.55, and 334.77, concerning the underground and aboveground storage tank program, without changes to the proposed text as published in the July 8, 1994, issue of Texas Register (19 TexReg 5335). The rules are necessary in order for the TNRCC storage tank program to receive approval from the U. S. Environmental Protection Agency (EPA), and are intended to satisfy the "no less stringency" requirement mandated by EPA. The rules clarify alternative systems that will be allowed for corrosion protection of underground storage tanks (USTs), alternative systems that will be allowed for spill and overfill prevention equipment on USTs, and the reporting requirements of initial abatement measures for confirmed releases. The rules also adjust cross-references. The TNRCC received no comments regarding adoption of the rules. Subchapter C. Technical Standards 30 TAC sec.sec.334.49, 334.51, 334.55 The amendments are adopted under the Texas Water Code, sec.5.103, which provides the TNRCC with the authority to adopt any rules necessary to carry out the powers and duties under the Texas Water Code and other laws of this state. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 9, 1994. TRD-9452334 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: July 8, 1994 For further information, please call: (512) 239-6087 Subchapter D. Release Reporting and Corrective Action 30 TAC sec.334.77 The amendment is adopted under the Texas Water Code, sec.5.103, which provides the TNRCC with the authority to adopt any rules necessary to carry out the powers and duties under the Texas Water Code and other laws of this state. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 9, 1994. TRD-9452333 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: July 8, 1994 For further information, please call: (512) 239-6087 Chapter 335. Industrial Solid Waste and Municipal Hazardous Waste Subchapter M. Pre-application Review and Permit Procedures 30 TAC sec.335.39l, sec.335.392 The Texas Natural Resource Conservation Commission adopts amendments to sec.335.39l and sec.335.392, concerning local pre-application review of proposals for new hazardous waste management facilities. Section 335.391 is adopted with changes to the proposed text as published in the September 30, l994, issue of the Texas Register (19 TexReg 7752). Section 335.392 is adopted without changes and will not be republished. The adopted sections define new and clarified requirements for informing the public of pre-application review, for designating the membership of review committees, and for procedures related to such review. The amendments increase the effectiveness of the review process by expanding public awareness through published notice of intended applications, by requiring a more balanced and representative makeup of local review committees, by requiring the engagement of professional facilitators to coordinate the activities of review committees, and by directing prospective applicants to defray the reasonable expenses of committees and facilitators. The comment period closed on October 3l, l994. No public hearing was requested to be held on the rules nor was such a hearing initiated by staff of the Commission. Written comments were received from an individual and a municipality. The individual commenter served on the committee that reviewed and recommended the amendments to the pre-application review and permit procedures. One commenter urged inclusion of language in the amendment to sec.335.39l(d) requiring the executive director to include agreements reached by the applicant and the local review committee in the draft permit as found to be consistent with that draft. The commenter adds that the procedure for offering the report at the hearing is inadequate as it provides only that the report may be offered by any party at a hearing. The commenter points out that the local review committee would not necessarily be a party and it is possible that an applicant may not volunteer to place the report into the record of the hearing. The commission responds that the requirement in subsection (d) that the executive director shall consider the report in any decision to recommend granting or denial of the permit application is intended to give serious consideration to any report produced by a local review committee and to any agreements reached by the applicant and local review committee. Since commission hearings are legal in nature the report may be offered only by parties to the hearing, subject to the rules of evidence. In any event, the commission believes that the report is likely to be entered into evidence by either a party supporting or opposing the permit application. The second commenter suggests that since facilitators are not licensed, perhaps it would be more feasible to allow the group to choose who they wish as a facilitator. The Commission responds with a clarification of sec.335.391(c) (3)(B)(x) to provide that the committee shall select and engage the services of a professional facilitator. The amendments are adopted under the Texas Water Code, Title 2, Subtitle A, sec.5.l03 and sec.5.l05, which authorizes the commission to adopt any rules necessary to carry out its powers and duties under the code and other laws of this state and to establish and approve all general policy of the commission and under Health and Safety Code, Title 5, Subtitle B, sec.36l.024, which authorizes the commission to adopt rules consistent with that chapter and to establish minimum standards of operation for the management and control of the solid waste under the commission's jurisdiction. sec.335.391. Pre-Application Review. (a)-(b) (No change.) (c) Procedure. (1) If a potential applicant decides to participate in a local review committee process, the potential applicant may so inform the persons listed in subparagraphs (A)-(C) of this paragraph, as soon as feasible after beginning informal discussions with the commission. To formally initiate the pre- application review process, the potential applicant shall file a notice of intent to file an application with the commission. Further, at the same time the potential applicant shall cause the notice to be published in a paper of general circulation in the county in which the facility is to be located. The form of this notice is specified in sec.335.392 of this title (relating to Notice of Intent To File a Permit Application). The potential applicant will, at the same time, send a copy of the notice by certified mail, return receipt requested, to the following persons: (A)-(C) (No change.) (2) (No change.) (3) Local review committees shall be composed of representatives of both local and regional interests. (A) Size. A local review committee shall consist optimally of 12 individuals. However, by mutual agreement between the applicant and the persons appointing the committee, a larger committee to better represent all interest groups present in a community or a smaller committee for economic reasons may be appointed. However, the committee shall maintain a one to one ratio of regional appointments to local appointments. (B) Appointments: (i)-(iv) (No change.) (v) If any local official or regional entity has failed to make any appointments within 45 days after the notice of intent to file has been received by the commission, the committee will be abolished without harm to the applicant's ability to pursue the application. (vi) Every effort should be made to appoint individuals who are open-minded, willing to participate in good faith, able to devote adequate time to participation, and respected in the community or region. The committee shall reflect the diversity of the community, including but not limited to the following factors: gender, age, race, economic status, and educational level. (vii) Appointees shall not be employees or agents of the potential applicant. (viii) (No change.) (ix) The committee shall elect a chairperson who will preside over meetings. (x) The committee shall be required to select and engage the services of a professional facilitator for the purpose of coordinating the activities of the committee and preparing the report. (4) The local review committee shall meet within 21 days after all regional and local appointments have been made. The commission will provide manuals to committee members which will orient them as to what the committee's activities should be; i.e., the production of a report detailing issues resolved, issues unresolved, and unanswered questions. (5) The pre-application review process shall continue for a maximum of 180 days unless it is shortened or lengthened by mutual agreement between the potential applicant and the local review committee. In addition, by mutual agreement the applicant and the committee may continue a dialogue for the purpose of addressing new concerns and changes to the draft permit. (6) Individuals who serve on local review committees shall serve without compensation; however, reasonable expenses for travel may be provided by the applicant. The potential applicant shall provide resources to fund the facilitator and other expenses which may include clerical and technical assistance, meeting space, and/or other items which may be necessary to aid the committee in its work. (d) (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 December 12, 1994. TRD-9452301 Mary Ruth Holder Director, Legal Services Division Texas Natural Resource Conservation Commission Effective date: January 2, 1995 Proposal publication date: September 30, 1994 For further information, please call: (512) 239-6087 TITLE 43. TRANSPORTATION Part I. Texas Department of Transportation Chapter 17. Vehicle Titles and Registration Dealers and Manufactures Vehicle License Plates 43 TAC sec.17.67 The Texas Department of Transportation adopts an amendment to sec.17.67, with changes to the proposed text as published in the September 23, 1994, issue of the Texas Register (19 TexReg 7516). Appendix B-1 and B-2 of sec.17.67 reflect the changes. Temporary cardboard tags are displayed for up to 20 days after purchase, in lieu of regular license plates. The department has received several complaints concerning the address requirement, particularly from women and older persons who are concerned for their personal safety. The department has determined that the safety concerns relating to the display of the purchaser's address outweigh the benefits and, therefore, finds it necessary to adopt an amendment to sec.17.67 to remove the requirement that the temporary cardboard tags display the purchaser's address. The department has changed the proposed rule so that the statement on the bottom line of the tag which read "Alterations Void This Receipt" is changed to read "Alterations Void This Tag." A public hearing on the proposed amendment was held on October 4, 1994 and no oral or written comments were received. The amendment is adopted under Texas Civil Statutes, Article 6666, which provide the Texas Transportation Commission with the authority to promulgate rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 6686, which authorize the department to promulgate rules necessary to carry out the provision of laws governing the issuance of dealer's and manufacture's license plates and tags. sec.17.67. Temporary Cardboard Tags. (a) (No change.) (b) The following appendices indicate the design and instructions for printing and use of each of the respective temporary tags: (1) Appendix A-1-dealer (design); Appendix A-2-dealer (instructions); Figure 1: 43 TAC sec.17.67(b)(1). (2) Appendix B-1-buyer (design); Appendix B-2-buyer (instructions); Figure 2: 43 TAC sec.17.67(b)(2). (3) (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 authority. Issued in Austin, Texas, on December 12, 1994. TRD-9452328 Diane L. Northam Legal Executive Assistant Texas Department of Transportation Effective date: January 2, 1995 Proposal publication date: September 23, 1994 For further information, please call: (512) 463-8630