PROPOSED RULES Before an agency may permanently adopt a new or amended section or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before action is taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive action, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 1. ADMINISTRATION Part X. Department of Information Resource Chapter 201. Planning and Management of Information Resources Technologies 1 TAC sec.201.7 The Department of Information Resources proposes new sec.201.7, concerning interagency contracts for information resources technologies. The section defines circumstances exempting contracts under a certain threshold from the public solicitation requirement and providing a mechanism for agencies to obtain waivers in other circumstances. The section is proposed in compliance with the provisions of sec.1.26 of Acts 1993, 73rd Legislature, Chapter 906, which provides the department may define circumstances in which certain interagency contracts that will cost less than a minimum amount established by the Department are excepted from the solicitation requirement, if the Department determines that it would be more cost effective for the state. Mr. Edward Serna, director of oversight operations, has determined that for the first five-year period the proposed section will be in effect, there will be no foreseeable fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Serna also has determined that for each year of the first five years the proposed section will be in effect, there will be a benefit to the public in that a mechanism will be provided for interagency contracts for information resources technologies to be exempted from bidding requirement in circumstances where it is cost effective to do so. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to John Hawkins, Department of Information Resources, P.O. Box 13564, Austin, Texas 78711, no later than 5:00 p.m., July 7, 1995. Envelopes must be clearly marked "Formal Comment to Proposed Action Enclosed." The new section is proposed under Government Code, sec.2054.052(a), which authorizes the Department to adopt rules as necessary to carry out its responsibility under the Information Resources Management Act; and sec.1.26 of Acts 1993, 73rd Legislature, Chapter 906, which provides the department may define circumstances in which certain interagency contracts that will cost less than a minimum amount established by the Department are excepted from the solicitation requirement. Section 1.26 of Acts 1993, 73rd Legislature, Chapter 906 is affected by this proposed section. sec.201.7. Interagency Contracts for Information Resources Technologies. (a) Public solicitation required. (1) Except as otherwise provided in subsection (b) of this section, each state agency that proposes to receive information resources technologies under a contract from another state agency must first solicit bids or proposals for the procurement of such technologies by giving public notice of a request for proposals or a request for bids. (2) Each state agency that solicits bids or proposals from the public for the procurement of information resources technologies must do so in accordance with applicable rules adopted by the General Services Commission pertaining to competitive bidding or competitive sealed proposals. (3) If a state agency receives a bid or a proposal from a private vendor in response to a solicitation issued in accordance with this subsection, it must review the bid or proposal and compare it with the best proposed interagency contract that is currently available to the state agency for the receipt of such information resources technologies. Specifically, the state agency must determine whether the bid or proposal: (A) is for the same or substantially the same technologies as those available under the proposed interagency contract; (B) would allow the state agency to accomplish the application or project at an acceptable level of quality; (C) would allow the state agency to accomplish the application or project in an acceptable period of time; and (D) would have a total cost to the state that is less than the total cost to the state of the best proposed interagency contract that is currently available to the state agency. (4) If a state agency receives a bid or proposal from a private vendor that satisfies all of the criteria listed under paragraph (3) of this subsection, it may not enter into an interagency contract for the receipt of such information resources technologies. (b) Exceptions to public solicitation requirement. A state agency may procure information resources technologies from another state agency without first giving public notice of a request for proposals or an invitation for bids in the following cases: (1) the total dollar amount of the proposed interagency contract does not exceed $50,000; (2) the state agency has requested and received a waiver from the department in accordance with subsection (c) of this section, and the total dollar amount of the proposed interagency contract does not exceed the amount specified by the department in the waiver; or (3) the total dollar amount of the proposed interagency contract does not exceed $1 million and one or more of the following circumstances are present: (A) the primary purpose of the proposed interagency contract is the direct accomplishment of a specific legislative mandate; (B) the same or substantially the same information resources technologies are available from two or more private vendors under the catalogue purchasing procedure of the General Services Commission at a cost that exceeds the cost of the proposed interagency contract; (C) the procurement constitutes an emergency purchase under applicable rules of the General Services Commission; (D) the procurement constitutes a proprietary purchase under applicable rules of the General Services Commission; (E) both parties to the proposed interagency contract are institutions of higher education with a common governing board, as those terms are defined in the Education Code, Section 61.003; or (F) both parties to the proposed interagency contract are health and human service agencies, as that term is defined in Texas Civil Statutes, Article 4413(502). (c) Waivers. (1) A state agency may submit a written request to the department for a waiver of the public solicitation requirement described in subsection (a) of this section. The written request must include the following: (A) a description of the proposed interagency contract, including the total dollar amount of the contract; (B) a description of the circumstances that would, in the opinion of the requesting state agency, justify an exception to the public solicitation requirement; (C) a certification that a procurement under the proposed interagency contract would, in the opinion of the requesting state agency, be more cost effective than a procurement based on a public solicitation of bids or proposals; (D) detailed cost information to support the certification of cost effectiveness; and (E) any other information requested by the department. (2) Upon receipt of a request for a waiver, the department shall promptly review the request to determine whether it contains the required information and the required certification of cost effectiveness. If the request does contain such information and certification, the department will then review the request to determine whether the proposed interagency contract is consistent with the requesting state agency's current biennial operating plan and all amendments, if any, that have been approved by the department. Unless the proposed interagency contract is clearly inconsistent with the agency's current approved plan and amendments, the department shall issue a written determination that a procurement under the proposed contract is presumed by the department to be more cost effective than a procurement based on a public solicitation of bids or proposals, and shall issue a written waiver of the public solicitation requirement for the proposed contract. The written waiver shall specify the maximum dollar amount that may be expended in connection with the proposed contract without having to comply with the public solicitation requirement. (3) If the department has not issued a written denial of the waiver request within thirty calendar days following the date of its receipt of the request, the request for a waiver shall be deemed to have been approved for an amount equal to the total dollar amount of the proposed interagency contract. (4) A decision by the department regarding the issuance of a waiver or a determination of cost effectiveness is final and may not be appealed. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 26, 1995. TRD-9506458 C. J. Brandt General Counsel Department of Information Resources Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 475-4714 1 TAC sec.201.13 The Department of Information Resources proposes an amendment to sec.201. 13(d), concerning information resource standards and policies. The subsection defines standards for data transport networks for computers. The amendment is proposed to make TCP/IP the long-term statewide standard protocol for data transport, removing its interim status. Mr. Serna, director of oversight operations, has determined that for the first five-year period the proposed amendment will be in effect, there will be no foreseeable fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Serna also has determined that for each year of the first five years the proposed section will be in effect, there will be a benefit to the public in that the revised standard will reflect the evolution of TCP/IP as an established part of the international infrastructure for data exchange and the diminished focus on the OSI protocol. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to John Hawkins, Department of Information Resources, P.O. Box 13564, Austin, Texas 78711, no later than 5:00 p.m., July 7, 1995. Envelopes must be clearly marked "Formal Comment to Proposed Action Enclosed." The amendment is proposed under Government Code, sec.2054.052(a), which authorizes the Department to adopt rules as necessary to carry out its responsibility under the Information Resources Management Act; and Government Code, and sec.2054.051(b), which authorizes the Department to publish standards relating to information resources management. Section 2054.051(b), Government Code is affected by this proposed amendment. sec.201.13. Information Resource Standards and Policies. (a)-(c) (No change.) (d) Standard for Data Transport Networks for Computers. (1) (No change.) (2) Standard. All networks that span more than one non-adjacent building, or interconnect more than one agency must adhere to the following: (A) (No change.) (B) All new networks, all extensions to existing networks and all networks undergoing substantial change must adhere to the TCP/IP standards as listed in the most recent Request for Comments (RFC) as international standards promulgated by the Internet Society
    . [(i) must adhere to the TCP/IP standards as listed in RFC 1410 or its most recent successor document, or [(ii) when products registered by the National Institutes of Standards and Technology as adhering to the Federal GOSIP standards, version 2, as specified in FIPS Publication 146-1, are more cost effective, such products may be specified.] (C) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 26, 1995. TRD-9506460 C. J. Brandt General Counsel Department of Information Resources Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 475-4714 TITLE 4. AGRICULTURE Part I. Texas Department of Agriculture Chapter 3. Boll Weevil Eradication Program Subchapter C. Prohibition of Planting of Cotton and Requirements for Participation in the Eradication Program 4 TAC sec.3.56 The Department of Agriculture (the department) proposes an amendment to sec.3.56, concerning assessment of penalties; destruction of cotton. The proposed amendment to sec.3.56 will allow the department to adjust penalties for non-reporting and/or non-payment of assessments according to the length of time past due and based on the assessment rate. Rick Smathers, deputy director for agri-systems, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule. Mr. Smathers also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be a more fair and equitable assessment of penalties for cotton producers that pay boll weevil eradication assessments after the appropriate due date. Currently, a $25 per acre penalty is assessed regardless of the length of time past due and the amount of the original assessment. There will be no effect on small businesses. There is an anticipated economic cost to persons who are required to comply with the rule as proposed. The cost to those required to pay an assessed penalty will be dependent on the number of acres in question and the amount assessed per acre. Comments on the proposal may be submitted to Rick Smathers, Deputy Director for Agri-Systems, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register. The amendment is proposed under the Texas Agriculture Code, sec.74.118, which provides the Texas Department of Agriculture with the authority to adopt rules setting a reasonable schedule of penalty fees to be assessed against growers who do not meet reporting of acreage and/or participation in cost sharing requirements. The code sections that will be affected by the proposal is Texas Agriculture Code, Chapter 74, Subchapter C. sec.3.56. Assessment of Penalties; Destruction of Cotton. (a) Each cotton grower in an eradication zone shall comply with the requirements of sec.3.54 of this title (relating to Requirement for Program Participation). Upon notification to the department by the foundation that a violation has occurred, a grower who violates those requirements may
      [shall] be assessed a penalty. (b) For a violation of sec.3.54(b)(1) which requires reporting of acreage, a grower may
        [shall] be assessed a penalty not to exceed
          [in the amount of] $25 per acre. (c) For a violation of sec.3.54(b)(2) which requires payment of the assessment established by the foundation, a grower may
            [shall] be assessed a penalty not to exceed
              [in the amount of] $25 per acre. (d)-(f) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 31, 1995. TRD-9506547 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 463-7583 TITLE 7. BANKING AND SECURITIES Part II. Banking Department of Texas Chapter 25. Prepaid Funeral Contracts Subchapter B. Regulation of Licenses 7 TAC sec.25.25 The Banking Department of Texas (the Department) re-proposes new 7 TAC sec.25.25, concerning the conversion of prepaid funeral contracts from trust funded benefits to insurance funded benefits, as provided for under Texas Civil Statutes, Article 548b (the Act), sec.1A. A prior proposal was published in the September 2, 1994, issue of the Texas Register (19 TexReg 6881), and was administratively withdrawn in the March 10, 1995, issue of the Texas Register (20 TexReg 1747). The conversion of prepaid funeral contracts to insurance funded benefits from trust funded benefits is permissible under the Act, sec.1A, if the insurance funded arrangement will safeguard the rights and interests of the individual prepaid funeral contract purchasers to substantially the same degree as or greater degree than the trust funded arrangement. In the past, the Department has reviewed insurance conversion applications and based its determination on the quality and extent of benefits under the insurance policy, as well as the status and condition of the applicant funeral home and the insurer, as a way of determining whether the proposed insurance funded arrangement would safeguard the rights and interests of the individual prepaid funeral contract purchasers to the same degree as or a greater degree than provided under the existing trust funded arrangement, see Texas Attorney General's Opinion Number MW-336 (1981). While relatively few insurance companies have been involved in these conversions in the past, interest in insurance conversions has grown among insurers in Texas. The Department proposes new sec.25.25 in order to more clearly outline the basic requirements for an application for conversion under the Act, sec.1A. As proposed, sec.25.25 would also set forth the standards for approval of the conversion application and the required documentation that must accompany an application for conversion, as well as information relevant to requesting a hearing on an application prior to final denial by the Department. Brian R. Herrick, assistant general counsel, Texas Department of Banking, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Herrick also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be the clarification and streamlining of the conversion application process under the Act, sec.1A. This should enhance the orderly administration of the Act and ensure that the purposes of the Act, as they relate to the conversion of prepaid funeral contracts from trust funded benefits to insurance funded benefits, are substantially fulfilled. There will be no greater economic cost to persons who choose to apply for conversion under the Act, sec.1A. Proposed s25.25 should shorten the time period required to process and approve or reject an application by setting forth the requirements for applications and the standards against which those applications will be measured. Comments on the proposal may be submitted to Brian R. Herrick, Assistant General Counsel, Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705-4294. The new section is proposed under Texas Civil Statutes, Article 548b, sec.2, which authorize the Department to prescribe reasonable rules and regulations concerning all matters incidental to the enforcement and orderly administration of Article 548b. Texas Civil Statutes, Article 548b is affected by the proposed new section. sec.25.25. Conversion From Trust to Insurance Funded Benefits. (a) Purpose. Existing prepaid funeral contracts that utilize trust funded prepaid funeral benefits may be converted to an insurance funded prepaid funeral benefits arrangement pursuant to the Act, sec.1A(d). Application for conversion must be made on forms acceptable to the Department that meet the requirements of the Act and this section. (b) Definitions. The following words and terms, when used in this section, shall be have the following meanings, unless otherwise defined herein or unless the context clearly indicates otherwise. (1) Applicant-A permit holder under the Act who files an application with the Department to convert its trust funded prepaid funeral benefits under existing contracts to insurance funded prepaid funeral benefits. (2) Cash surrender value-The net amount due the policy owner from the insurer upon surrender of an insurance policy. (3) Commission, allowance, or load-Any commission or other compensation, expense load, premium expense, administrative charge or expense, policy fees, or other fee or expense paid to a Texas Department of Insurance licensed agent associated with or occurring by reason of the sale, issuance, lapse, surrender, or redemption of an insurance policy in connection with the conversion of any trust funded prepaid funeral contract to insurance funded benefits. (4) Insurance policy-A life insurance policy or annuity contract. (5) Post-conversion permit holder-The permit holder who will hold, administer, and assume responsibility for the delivery of the funeral service or merchandise or payment of the funeral provider, as the case may be, under the prepaid funeral contracts after conversion to insurance funding. (6) Required reserves-The reserve liabilities for all outstanding life insurance policies and annuity contracts valued or calculated pursuant to actuarial standards and statutory accounting standards not inconsistent with the Texas Insurance Code. (7) TDI-The Texas Department of Insurance. (c) Applications. (1) When applying for permission to convert trust funded benefits under existing prepaid funeral contracts to insurance funded benefits, an applicant must, at a minimum: (A) hold a valid permit issued by the Department under the Act; (B) be in good standing with the Department; (C) submit a completed conversion application to the Special Audits Division of the Department; and (D) as of its most recent examination by the Department, not have been found to be in violation of any applicable laws or regulations, or to have any other deficiencies of any significance, which have not been remedied or corrected to the satisfaction of the Department. (2) The Department may, if it deems it necessary to protection the interests of the prepaid funeral contract purchasers, conduct an examination of the applicant within 45 days of the date the application is accepted by the Department for filing. (3) Each application for conversion must include: (A) a copy of a letter from an insurance company authorized to do business in Texas to the applicant that sets forth the insurance company's agreement to issue insurance policies to convert the prepaid funeral contracts from trust funded benefits to insurance funded benefits; (B) a copy of the written commitment to the Commissioner containing the agreement between or among the insurance company, the applicant, and the post- conversion permit holder regarding the transfer, receipt, and application of the trust funds upon conversion, which commitment must: (i) include the full name of the agent or agents who will be receiving any commission, allowance, or load and their respective TDI license numbers, if applicable; and (ii) require that a copy of each insurance policy issued be furnished to the owner of the insurance policy and that a copy be made available to the respective prepaid funeral contract purchasers upon request, in the event they are not the owners of the policies; (C) a pre-conversion summary of the individual prepaid funeral contracts, which must include, at a minimum, the following information (as of a date within 30 days of the date of the application), as well as aggregated totals for each category of information, if appropriate: (i) purchaser's name and, if available, date of birth; (ii) date of execution of the prepaid funeral contract; (iii) face amount; (iv) amount paid in and amount left owing; (v) accumulated earnings; (vi) amount due the prepaid funeral contract purchaser upon cancellation and the amount due the applicant upon death of the prepaid funeral contract purchaser, assuming death were to occur on or about the date of the application; and (vii) amount retained by the applicant under the Act, sec.5(a)(1); (D) a post-conversion summary of the individual prepaid funeral contracts, which must include, at a minimum, the following information (as of the same date as the pre-conversion summary), as well as aggregated totals for each category of information, if appropriate: (i) insured's or annuitant's name; (ii) original prepaid funeral contract amount; (iii) amount paid in; (iv) amount applied to the purchase of the insurance policy; (v) initial cash surrender value, amount due the prepaid funeral contract purchaser upon cancellation under the Act, amount of the difference between the cash surrender value and the amount due the prepaid funeral contract holder under the Act, and initial death benefit under the insurance policy; and (vi) amount retained by the applicant under the Act, sec.5(a)(1); (E) a copy of the insurance policy approved by TDI showing the approval stamp of TDI, or evidence that the policy is deemed to have been approved or exempt from approval; (F) a copy of the proposed negative response notification letter to the prepaid funeral contract purchasers from the applicant containing a statement explaining the purchaser has 60 days to file a written request with the Department to have the contract converted back to trust funded benefits; (G) unless otherwise waived by the Commissioner upon a showing of good cause, current year-to-date financial statements for the post-conversion permit holder and insurance company (dated no more than six months prior to the date of the application) and an actuarial certification certifying that the reserves to be held by the insurance company with respect to the conversion will be adequate to pay claims as they become due; (H) a copy of the insurance company's most recent actuarial certification, dated no more than one year prior the date of application; (I) a copy of the proposed notification letter from the insurance company to the prepaid funeral contract purchasers regarding the conversion; (J) a statement defining the insurance policy commission, allowance, or load, including the percentage and dollar amount of be the commission, allowance, or load, the time at which it is to imposed, and how the commission, allowance, or load will be distributed; (K) a copy of the form of assignment, if any, to be used in assigning insurance policy rights or proceeds to the post-conversion permit holder; (L) the conversion application fee prescribed in sec.25.23 of this chapter; and (M) a letter from an actuary, certified public accountant, or an attorney rendering an opinion as to whether, in the case of life insurance, the policies issued will qualify as life insurance for purposes of Section 7702, Internal Revenue Code if the owner of the insurance policy will be the prepaid funeral contract purchaser. (d) Standards for Approval of Application. (1) An application for conversion will be approved by the Commissioner if, in the Commissioner's opinion, the rights and interests of the prepaid funeral contract purchasers under the insurance funded benefits arrangement will be safeguarded to the same degree as or to a greater degree than provided under the trust funded benefits arrangement. An application may be approved without the necessity of a hearing. (2) In order for insurance funded benefits under an application for conversion to be considered to safeguard the rights and interests of the prepaid funeral contract purchasers to the same degree as or a greater degree than the trust funded benefits, the insurance benefits must comply with this subsection. (A) Unless otherwise permitted by the Commissioner upon a showing of good cause, the insurance funded benefits arrangement must apply to all of the applicant's trust funded prepaid funeral contract purchasers, as of the date of the application, and the insurance benefits arrangement must provide each prepaid funeral contract purchaser with an initial cash surrender value or cancellation benefit that is greater than or equal to the cancellation benefit provided for under the trust funded benefits arrangement. In addition, the insurance company is responsible for maintaining adequate reserves for cancellations. (B) The cancellation benefit must be the obligation of the post-conversion permit holder and not a third party. (C) The transfer of the trust funds to the insurance company must include the full sum required to be deposited as trust principal by the applicant pursuant to the Act under the trust funded prepaid funeral contracts proposed for conversion, plus all net earnings accumulated with respect thereto, as of the transfer date. No commission, allowance, or load may be deducted from the trust funds transferred pursuant to the conversion application. (D) No provision in the insurance policy may provide or allow for contesting coverage, limited death benefits in the case of suicide, or make reference to a physical examination, or any other provision that would operate as an exclusion, limitation, or condition, other than submittal of proof of death or surrender of the policy, upon the funding, at maturity, or cancellation, as the case may be, of the original trust funded prepaid funeral contract or the benefits thereof. (E) The death benefit under the insurance policy at all times must be no less than the death benefit prior to conversion. (F) The insurance company must demonstrate that, in the previous seven years, the average death benefit growth under the same or substantially similar insurance policies issued by the insurance company to fund prepaid funeral contracts has been at least 3.0% per annum. If the insurance company cannot so demonstrate, then the insurance policy must provide for guaranteed growth of the death benefit of no less than 2.0% per annum compounded annually beginning in the first year of the policy. (G) The post-conversion permit holder is responsible for payment of all death and cancellation claims in accordance with the provisions of the Act. (H) The post-conversion permit holder must have a current valid permit issued by the Department under the Act, and must be in good standing with the Department. (I) The post-conversion permit holder must have been examined by the Department within the 24-month period immediately preceding the date of the application and not have been found to be in violation of any applicable laws or regulations, or to have any other deficiencies of any significance, which have not been remedied or corrected to the satisfaction of the Department. If the post-conversion permit holder has not been examined by the Department within such time period, the Department may, if it deems necessary, conduct an examination of the post-conversion permit holder within 45 days of the date the application is accepted for filing or waive this requirement. (J) The insurance company must be a member of the Texas Life, Accident, Health, and Hospital Service Insurance Guaranty Association. (K) Any life insurance policy issued on any individual must be for an amount not less than the amount of principal and interest transferred for that individual to the insurance company, and any supplemental life insurance policy issued to cover the unfunded portion of the contract must have a face amount equal to or greater than the unfunded principal balance. No credit or reduction may be made for interest earned or accrued on the paid in principal balance. (3) The applicant must demonstrate compliance with the Act, sec.5B for the previous year, and may not convert prepaid funeral contracts that are presumed abandoned under sec.5B. Any prepaid funeral contracts presumed to have been abandoned and the funds attributable to such contracts must be reported and delivered to the Texas State Treasurer in accordance with Chapter 74, Texas Property Code. (e) Post-Conversion Summary. The post-conversion permit holder must submit to the Department, within 90 days of the date of transfer of the trust funds as authorized by the Commissioner's order, a post-conversion summary of the individual prepaid funeral contracts as of the conversion date, which must include, at a minimum, the following information, as well as aggregated totals for each category of information, if appropriate: (1) insured's or annuitant's name; (2) the original prepaid funeral contract amount; (3) amount paid in; (4) amount applied to the purchase of the insurance policy; (5) initial cash surrender value, amount due the prepaid funeral contract purchaser upon cancellation under the Act, amount of the difference between the cash surrender value and the amount due the prepaid funeral contract holder under the Act, and initial death benefit under the insurance policy; and (6) amount retained by the applicant under the Act, s5(a)(1). (f) Records. The applicant shall relinquish to the post-conversion permit holder the individual prepaid funeral contract ledgers reflecting the amount paid and the amount left owing on the prepaid funeral contract, if any. The post conversion permit holder shall be responsible for maintaining such ledgers to reflect the principal balance of the converted contracts as well as any outstanding balances. (g) Hearings. The Commissioner may order a hearing on an application. A hearing, if ordered, shall be conducted pursuant to the Department's rules governing hearings. The applicant shall have the burden to demonstrate the existence of all factors necessary to entitle the applicant to convert to insurance funded benefits from trust funded benefits by a preponderance of the evidence. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 30, 1995. TRD-9506533 Everette D. Jobe General Counsel Banking Department of Texas Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 475-1300 TITLE 22. EXAMINING BOARDS Part XVII. Texas State Board of Plumbing Examiners Chapter 361. Administration General Provisions 22 TAC sec.361.6 The Texas State Board of Plumbing Examiners proposes an amendment to sec.361.6, concerning fee structures. The amendment is a direct result of the Board's anticipated legislative appropriations to be enacted by the 74th Texas Legislature. The intent of the 74th Texas Legislature is that fees, fines, and other miscellaneous revenues cover, at a minimum, the cost of the appropriations including employee matching costs and any other direct operating costs. The estimated income that would be generated based upon the proposed amendment to the Board's fee structure will satisfy approximately the legislature's intent. Douglas A. Beran, Ph.D., Chief Fiscal Officer/Office Manager, has determined that for the first five-year period the section is in effect there will be fiscal implications for state or local government as a result of enforcing or administering the section. The estimated increase in revenue for each fiscal year in the upcoming biennium is approximately $900,000 which would satisfy Called Session House Bill Number 1, Article VIII-61, Contingent Revenue (Montford) and House Committee Report House Bill Number 1, Article VIII-57, Appropriations Limited to Revenue Collections (Junell). This estimated increase in revenue is anticipated to occur for the three years subsequent to the upcoming biennium. Dr. Beran also has determined that for each year of the first five years the section is in effect, the public benefits anticipated as a result of enforcing the section will be enhanced public health, safety, and welfare because the Board will have a sufficient income to enforce aggressively the Plumbing License Law. The anticipated economic cost to local governments who are required to comply with the amendment will be contingent upon the number of prospective inspectors who undergo inspector examinations paid by the local governments and the number of inspectors who will be licensed and/or have their licenses renewed and paid by the local governments. Similarly, small businesses and individuals who are required to comply with the amendment will be contingent upon the fees applicable to the respective examinations and renewals for plumbers and prospective plumbers employed by the small businesses and for the individuals who pay for their own examinations, licenses, and renewals. Comments on the proposal may be submitted in writing to Dr. Beran at the Texas State Board of Plumbing Examiners, P.O. Box 4200, Austin, Texas 78765. The amendment is proposed under Texas Civil Statutes, Article 6243-101, which provide the Texas State Board of Plumbing Examiners with the authority to prescribe, amend, and enforce all rules necessary to carry out the Pluming License Law. The proposed amendment does not affect other statutes, articles, codes. sec.361.6. Fees. (a) The board has established the following fees: (1) Licenses: (A) Master license $150
                [$75]; (B) Journeyman license $18
                  [$12]; (C)-(D) (No change.) (E) Plumbing inspector license $80
                    [$50]; (F)-(G) (No change.) (2) Examinations: (A) Master examination $150
                      [$75]; (B) Journeyman examination 31
                        [$25]; (C)-(D) (No change.) (E) Plumbing inspector examination $80
                          [$50]; (F)-(G) (No change.) (3) Renewals: (A) Master license $150
                            [$75]; (B) Journeyman license $18
                              [$12]; (C)-(D) (No change.) (E) Plumbing inspector license $80
                                [$50]; (F)-(G) (No change.) (4) Other fees: (A) Late renewal: (i) Master: less than 90 days-one-half; (I) examination fee-$75
                                  [$37.50]; (II) more than 90 days-examination-fee $150
                                    [$75]; (ii)-(iii) (No change.) (iv) Journeyman: less than 90 days-one-half: (I) examination fee-$15.50
                                      [$12.50]; (II) more than 90 days-examination-fee $31
                                        [$25]; (v)-(vi) (No change.) (B)-(D) (No change.) (b)-(d)(No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 26, 1995. TRD-9506455 Gilbert Kissling Administrator Texas State Board of Plumbing Examiners Proposed date of adoption: July 10, 1995 For further information, please call: (512) 458-2145 Chapter 363. Examinations 22 TAC sec.363.11 The Texas State Board of Plumbing Examiners proposes an amendment to sec.363.11(a)(1), concerning the course outline, content, and required minimum hours for an approved medical gas training program and an expanded pool of applicants eligible to apply to be approved providers of medical gas training programs. Douglas A. Beran, Ph.D., Chief Fiscal Officer/Office Manager, has determined that for the first five-year period the rule is in effect there may be fiscal implications as a result of enforcing or administering the rule. This is contingent upon whether or not any of the eligible applicants in the expanded pool of applicants elects to apply to become an approved provider of medical gas instruction. Should this occur, the Board may incur additional costs to review the additional applications from the expanded pool of eligible applicants. Further, if one of the newly eligible applicants is selected as an approved provider, the Board may incur additional costs to ensure their classes have been provided equitably across the State of Texas, to review the quality of content and instruction, and to respond to complaints regarding approved providers of medical gas instruction. Dr. Beran also has determined that for each year of the first five years the rule as proposed is in effect, the public benefit anticipated as a result of enforcing the rule as proposed will be enhanced public health, safety, and welfare by ensuring medical gas systems have been installed in such a manner as to prevent infection and/or to prevent an unintended cross-connection of breathable and lethal gases because the installers of medical gas piping have undergone quality medical gas training programs. The anticipated economic cost to local governments and small businesses required to comply with the rule as proposed will be contingent upon their costs, as applicable, to comply with the application procedures required by the Texas State Board of Plumbing Examiners, to incorporate such changes into their medical gas training programs, and to employ medical gas instructors who have successfully completed a Board-approved medical gas program and instructional methodology program. The costs for individuals will be contingent upon fees imposed by the approved providers of medical gas training programs to recover the costs for complying with the rule. Comments on the proposal may be submitted in writing to Dr. Beran at the Texas State Board of Plumbing Examiners, P.O. Box 4200, Austin, Texas 78765. The amendment is proposed under Texas Civil Statutes, Article 6243-101, which provide the Texas State Board of Plumbing Examiners with the authority to prescribe, amend, and enforce all rules necessary to carry out the Plumbing License Law. The proposed amendment affects the Texas Education Code, Proprietary Schools and Veterans Education, Chapter 32. sec.363.11. Endorsement Training Programs. (a) Medical gas piping installation training programs. (1) Any person wishing to offer a training program in medical gas piping installation to the public must meet criteria as prescribed by the board and included in the National Fire Protection Association (NFPA) 99C Gas and Vacuum Systems Latest Edition. Instructors shall be employed by a program that meets certification requirements of the Central Education Agency or is exempted from the Central Education Agency certification requirements under Chapter 32, Texas Education Code, sec.32.12(a)[(5)], (Proprietary Schools and Veterans Education). Such persons shall provide to the administrator lesson plans and instructor credentials. Approved providers of medical gas training shall furnish a program consisting of a classroom presentation of course material, a test of the enrollee's comprehension of the matter, a shop demonstration of the proper brazing procedures by the instructor, and the enrollee's final brazing evidence to the instructor of an accepted vertical and horizontal practice coupon. A minimum of 24 hours shall be assigned to the classroom presentation and testing; a minimum of four hours shall be assigned to the brazing demonstrations. The student enrolled in medical gas training will be have completed a minimum of eight hours of practice brazing coupons in an equipped shop. These coupons will be presented to the instructor for grading. The aforementioned hours represent the minimum requirements only; additional time may be included in each segment of the program.
                                          [The board shall provide a course outline and the required minimum hours.] (2)-(6) (No change.) (b) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 26, 1995. TRD-9506456 Gilbert Kissling Administrator Texas State Board of Plumbing Examiners Proposed date of adoption: July 10, 1995 For further information, please call: (512) 458-2145 Chapter 365. Licensing 22 TAC sec.365.3 The Texas State Board of Plumbing Examiners proposes an amendment to sec.365.3 concerning the employer's certification form. The proposed amendment to sec.365.3(b)(3)(G) is a "clean-up" to the rule so that it corresponds with rule sec.361.8(2). Douglas A. Beran, Ph.D., Chief Fiscal Officer/Office Manager has determined that for the first five-year period the section is in effect there will be no fiscal implication as a result of enforcing or administering the section. Dr. Beran also has determined that for each year of the first five years the section as proposed is in effect, the public benefits anticipated as a result of enforcing the section will be enhanced public health, safety, and welfare by ensuring compliance by the Board and by its clientele with the Plumbing License Law through the use of the appropriate forms. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted in writing to Dr. Beran at the Texas State Board of Plumbing Examiners, P.O. Box 4200, Austin, Texas 78765. The amendment is proposed under Texas Civil Statutes, Article 6243-101, which provide the Texas State Board of Plumbing Examiners with the authority to prescribe, amend, and enforce all rules necessary to carry out the Plumbing License Law. The proposed amendment does not affect other statutes, articles, or codes. sec.365.3. License Qualifications. (a) (No change.) (b) To be eligible to take the Journeyman examination, the applicant must: (1)-(2) (No change.) (3) meet the minimum trade experience requirements set forth below: (A)-(F) (No change.) (G) When the registered apprentice applies to take the Journeyman examination, he/she must submit the Employer's Certification [(Form E-6b; Rev. 7/89)]. This form certifies the applicant's work experience complies with the eligibility criteria for the Journeyman examination. If the applicant has met the criteria through employment with one employer, the Employer's Certification must be completed by that employer. However, if the applicant has met the criteria through employment with various employers, then the Employer's Certification must be submitted from each of those employers. Therefore, the board recommends the applicant request an employer to complete the Employer's Certification each time the applicant discontinues employment with a particular employer. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 26, 1995. TRD-9506503 Gilbert Kissling Administrator Texas State Board of Plumbing Examiners Proposed date of adoption: July 10, 1995 For further information, please call: (512) 458-2145 22 TAC sec.365.14 The Texas State Board of Plumbing Examiners proposes an amendment to sec.365.14(a), concerning approval criteria for providers of continuing education. Douglas A. Beran, Ph.D., Chief Fiscal Officer/Office Manager, has determined that for the first five years the rule is in effect there may be fiscal implications as a result of enforcing or administering the rule. This is contingent upon whether or not any of the eligible applicants in the expanded pool of applicants elects to apply to become an approved provider of continuing education. Should this occur, the Board may incur additional costs to review the additional applications from the expanded pool of eligible applicants. Further, if one of the newly eligible applicants is selected as an approved provider, the Board may incur additional costs to review annually the approved providers to ensure the classes have been provided equitably across the State of Texas and to respond to complaints regarding approved providers of continuing education. The fiscal impact on local governments and small businesses will be contingent upon the following costs, as applicable: to comply with the application procedures required by the Texas State Board of Plumbing Examiners, to attend instructor certification workshops conducted by the Board, and to employ approved instructors. Dr. Beran also has determined that for each year of the first five years the rule as proposed is in effect, the public benefit anticipated as a result of enforcing the rule as proposed will be enhanced public health, safety, and welfare by ensuring each person has access to clean water because of plumbing installed and maintained by well-trained and competent plumbers who have undergone quality continuing education programs. The plumbers who take the continuing education courses also will benefit from having sound education provided by stable groups the legislature already has recognized. Comments on the proposal may be submitted in writing to Dr. Beran at the Texas State Board of Plumbing Examiners, P.O. Box 4200, Austin, Texas 78765. The amendment is proposed under Texas Civil Statutes, Article 6243-101, which provide the Texas State Board of Plumbing Examiners with the authority to prescribe, amend, and enforce all rules necessary to carry out the Plumbing License Law. The proposed amendment affects the Texas Education Code, Proprietary Schools and Veterans Education, Chapter 32. sec.365.14. Continuing Education Programs. (a) Any provider wishing to offer continuing education in plumbing must make application at least 60 days prior to the March board meeting each year. The 60- day deadline will become effective September 1, 1995. The board shall approve no more than four providers annually. All providers will submit to the board a list of instructors and instructors' credentials for board approval. The board will approve a course and textbook each year as well as a course outline and establish the required minimum hours. The providers shall meet the certification requirements of the Central Education Agency or be exempted from the Central Education Agency certification requirements under Chapter 32, sec.32.12(a)[(5)], Texas Education Code (Texas Proprietary School Act) or be approved by the United States Department of Labor-Bureau of Apprenticeship Training Schools and/or Programs. (b)-(g) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 26, 1995. TRD-9506457 Gilbert Kissling Administrator Texas State Board of Plumbing Examiners Proposed date of adoption: July 10, 1995 For further information, please call: (512) 458-2145 Part XXIII. Texas Real Estate Commission Chapter 535. Provisions of The Real Estate License Act Definitions 22 TAC sec.535.13 The Texas Real Estate Commission proposes an amendment to sec.535.13, concerning dispositions of real estate. The amendment addresses whether a real estate license is required for a person to arrange for other persons to occupy vacant residential property. The amendment also would clarify that the collection of rents for an owner is not an act requiring a real estate license unless the person collecting the rent is engaged in the renting or leasing of the property for the owner. When a real estate broker lists residential property for sale, the owner of the property may no longer occupy the property at the time it is offered for sale. To protect against vandalism of the property and to maintain the property for showing to prospective buyers, it is often desirable to have the property occupied during the listing period. Businesses have been created which find occupants for the owner's property and arrange for the property to be occupied during the listing period. Typically, the businesses receive a valuable consideration from the occupant for the right to live in the property. The amendment would clarify that the act of arranging for the occupation of the property for a valuable consideration is an act within the definition of the term "real estate broker" as used in Texas Civil Statutes, Article 6573a, (the Act), s2(2)(A). Persons who own the property, lease it from the owner, or are otherwise exempted from the requirement of a license by the Act would not have to be licensed as a real estate broker or salesman under the proposed amendment. The amendment also would provide guidelines to determine whether an agreement between the owner of the property and the person arranging for the property to be occupied is a lease. To be considered a lease for the purpose of the section, the agreement would have to be for a specific term, it would have to obligate payment of a valuable consideration to the owner, and it must specifically grant the right to sublease the property. The amendment also clarifies that a real estate license is not required to collect rentals unless the person collecting the rentals is also engaged in the renting or leasing of the property for its owner. The amendment would conform the section with the Act, which since 1975 has not required a person to be licensed if the person only collects rentals. Mark A. Moseley, general counsel, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Adoption of the amendment may slightly increase applications for real estate licenses or complaints against unlicensed persons. There is no anticipated impact on local or state employment as a result of implementing the section. Mr. Moseley also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the section will be the clarification of real estate license requirements for persons who perform the services addressed in the section. There will be no effect on small businesses. There is an anticipated economic cost to unlicensed persons who are required to comply with the proposed section, consisting of an estimated expense of $300 for the 90 classroom hours of required prelicensing education most applicants complete before being eligible to apply and $100 for real estate salesman application filing fees. Once licensed, a salesman would thereafter be obligated to pay annual license renewal fees currently set at $36 and to complete an additional 90 hours of courses over a three-year period. After three years, the licensee would be obligated to complete 15 hours of mandatory continuing education courses for biennial renewal of the license, estimated to cost $75 every two years. Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h) , which authorize the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties. sec.535.13. Dispositions of Real Estate. (a) (No change.) (b) Unless otherwise exempted by Texas Civil Statutes, Article 6573a ( the Act)
                                            , a person
                                              who collects rentals for an owner of real property
                                                and for a valuable consideration
                                                  must be licensed if the person also rents or leases the property for the owner
                                                    . (c)-(g) (No change.) (h) Arranging for a person to occupy a vacant residential property is an act requiring a real estate license if the actor: (1) does not own the property or lease the property from its owner; (2) receives a valuable consideration from the person who occupies the property; and (3) is not exempted from the requirement of a license by Section 3 of the Act. (i) For the purposes of subsection (h) an agreement between the owner of real property and the actor is not considered a lease unless the agreement includes the following provisions: (1) a definite term during which the actor may occupy the property if the property is not subleased to another person; (2) an obligation for the actor to pay a valuable consideration to the owner of the property for the rights granted by the owner; and (3) a specific grant of authority for the actor to lease the property to a sublessee. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 30, 1995. TRD-9506504 Mark A. Moseley General Counsel Texas Real Estate Commission Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 465-3900 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part I. Texas Department of Public Safety Chapter 15. Drivers License Rules Licensing Requirements 37 TAC sec.15.6 The Texas Department of Public Safety proposes an amendment to sec.15.6, concerning drivers license rules. Proposed amendment adds and deletes language establishing the requirements for issuance of a Class M license. The amendment establishes the licensing requirements for a Class M license applicable to operating a motorcycle, motor-driven cycle, and a moped. Tom Haas, Chief of Finance, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. There will be no effect on local employment or the local economy. Mr. Haas also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to ensure the public is aware of the requirements for issuance of the license promulgated by this section. There will be no effect on small businesses. The anticipated economic cost to persons who are required to comply with the section as proposed will be the $55 cost of the Department-Approved Basic Motorcycle Operator Training Course. Comments on the proposal may be submitted to John C. West, Jr., Chief of Legal Services, Texas Department of Public Safety, Box 4087, Austin, Texas 78773-0001, (512) 465-2890. The amendment is proposed under Texas Civil Statutes, Article 6687b, sec.1A, which provide the Texas Department of Public Safety with the authority to adopt rules that it determines are necessary to effectively administer this Act. Texas Civil Statutes, Article 6687b, sec.1A is affected by this proposal. sec.15.6. Motorcycle License.
                                                      A motorcycle license authorizes the driving of a motorcycle or motor-assisted bicycle. Three types of motorcycle licenses are issued. One is for all motorcycles of any size engine; one is for motor- driven cycles of 125 cubic centimeter piston displacement or less; and one is for motor-assisted bicycles of less than 50 cubic centimeter piston displacement. A driver qualifying to operate both motorcycle and Class A, B, or C type vehicles will be issued one license showing both classes with restrictions when applicable. (1) Motorcycle. Requires a Class M license. (A) (No change.) (B) The minimum age is 16 years with completion of the classroom [or concurrent] phase of driver education and the Department-Approved Basic Motorcycle Operator Training Course
                                                        [motorcycle driver education] or Minor's Restricted Driver's License (MRDL) approval. (2) Motor-Driven Cycle. Requires restricted Class M license. (A) The minimum age is 15 years with completion of the classroom [or concurrent] phase of driver education and the Department-Approved Basic Motorcycle Operator Training Course
                                                          [motorcycle driver education] or Minor's Restricted Driver's License (MRDL) approval. (B) (No change.) (3) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 18, 1995. TRD-9506554 James R. Wilson Director Texas Department of Public Safety Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 465-2890 Application Requirements-Original, Renewal, Duplicate, Identification Certificates 37 TAC sec.15.29 The Texas Department of Public Safety proposes an amendment to sec.15.29, concerning Application Requirements-Original, Renewal, Duplicate, Identification Certificates. Proposed amendment to sec.15.29 adds paragraph (3) which clearly defines what the requirements are for enrolling in a motorcycle course and clarifies who must present a driver education certificate. Tom Haas, Chief of Finance, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. There will be no effect on local employment or the local economy. Mr. Haas also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to ensure the public is aware of the requirements for issuance of the license promulgated by this section. There will be no effect on small businesses. The anticipated economic cost to persons who are required to comply with the section as proposed will be the $55 cost of the Department-Approved Basic Motorcycle Operator Training course. Comments on the proposal may be submitted to John C. West, Jr., Chief of Legal Services, Texas Department of Public Safety, Box 4087, Austin, Texas 78773-0001, (512) 465-2890. The amendment is proposed under Texas Civil Statutes, Article 6687b, sec.1A, which provide the Texas Department of Public Safety with the authority to adopt rules that it determines are necessary to effectively administer this Act. Texas Civil Statutes, Article 6687b, sec.1A is affected by this proposal. sec.15.29. Driver Education Forms. Driver education students, ages 15-17, must present the proper driver education form verifying that an approved driver education course has been satisfactorily completed. (1)-(2) (No change.) (3) Applicants under age 18 applying for Class M license. (A) Persons under age 18 enrolling in a Department-Approved Basic Motorcycle Operator Training Course must have successfully completed the classroom phase of driver education. The form DL-41A must be presented as evidence of completion as a prerequisite to enrolling in a Department-Approved Basic Motorcycle Operator Training Course. (B) Persons 15 to 17 years of age applying for a Class M license or adding a Class M to an existing license must have completed the classroom phase of driver education and have completed a Department-Approved Basic Motorcycle Operator Training Course. (C) Persons 15 to 17 years of age applying for a Class M instruction permit must have completed the classroom phase of driver education and have completed a Department-Approved Basic Motorcycle Operator Training course. (D) Any driver education instructor desiring to teach the Department- Approved Basic Motorcycle Operator Training Course must successfully complete the Motorcycle Safety Foundation's Motorcycle Instructor's Course and be certified by that organization. Persons desiring information on this program should be referred to the DPS Motorcycle Operator Training Section in Austin. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 18, 1995. TRD-9506552 James R. Wilson Director Texas Department of Public Safety Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 465-2890 Examination Requirements 37 TAC sec.15.55 The Texas Department of Public Safety proposes an amendment to sec.15.55, concerning examination requirements. The title of the section is changed for uniformity with text. Proposed amendment adds new paragraph (2) and renumbers current paragraphs (2)-(4) to (3), (4), and (5). The proposed amendment allows persons to take a Department-Approved Basic Motorcycle Operator Training Course in lieu of the motorcycle skills test. Tom Haas, Chief of Finance, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. There will be no effect on local employment or the local economy. Mr. Haas also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be a convenience to the public in obtaining a motorcycle license by not having to take the skills test. There will be no effect on small businesses. The anticipated economic cost to persons who are required to comply with the section as proposed will be the $55 cost of the Department-Approved Basic Motorcycle Operator Training Course. Comments on the proposal may be submitted to John C. West, Jr., Chief of Legal Services, Texas Department of Public Safety, Box 4087, Austin, Texas 78773-0001, (512) 465-2890. The amendment is proposed under Texas Civil Statutes, Article 6687b, sec.1A, which provide the Texas Department of Public Safety with the authority to adopt rules that it determines are necessary to effectively administer this Act. Texas Civil Statutes, Article 6687b, sec.1A, is affected by this proposal. sec.15.55. Waiver of Knowledge and/or [and] Skills Tests. Knowledge and skills tests are waived for persons holding a valid out-of-state license when applying for a Texas license of the same or lower type. (1) (No change.) (2) The skills test for a motorcycle license is waived for individuals that have a valid, unrestricted Class A, B, or C Texas Driver License and have successfully completed the Department-Approved Basic Motorcycle Operator Training Course. A Texas Driver Education Certificate (Form DL-41A) will be used as proof of successful completion of the Department-Approved Basic Motorcycle Operator Training Course. This waiver provision applies only to a person age 16 or over who has completed the classroom phase of Driver Education and completed the Department-Approved Basic Motorcycle Operator Training Course or a person age 18 or over who has completed the Department-Approved Basic Motorcycle Operator Training Course and has a valid unrestricted Class A, B, or C Texas Driver's License. All other applicants must take and pass a skills test for a motorcycle license. Unrestricted Class A, B, and C license means a license that allows a person to operate a motor vehicle without having a restriction of a "Licensed Operator Age 18 or Over in the Front Seat." All motorcycle applicants are required to complete and pass the Class M rules tests. (3)
                                                            [(2)] For applicants with expired or no license, the complete examination will be given, including the skills test. (4)
                                                              [(3)] If the same or lower class of license is applied for, the applicant must pass only the vision tests. The knowledge and skills tests will be waived for all applicants who present a valid out-of-state license. If an advance in grade is applied for, the applicant must pass the vision tests and appropriate knowledge tests and skills test. (5)
                                                                [(4)] The term "knowledge test" means written, computerized, or automated tests. The term "skills test" means driving or road tests. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 18, 1995. TRD-9506553 James R. Wilson Director Texas Department of Public Safety Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 465-2890 Chapter 17. Administrative License Revocation 37 TAC sec.sec.17.1, 17.11, 17.16 The Texas Department of Public Safety proposes amendments to sec.sec.17.1, 17. 11, and new 17.16, concerning administrative license revocation ("ALR"). Amendment to sec.17.1 adds language broadening the scope of ALR to include all discovery requests. Amendment to sec.17.11 adds new subsection (d) designating the department's agent for service and address in order that sensitive legal documents may be handled expediently. The department is proposing new sec.17.16 dealing with defendant's written requests for production and reports for maintenance and/or repair records of instruments used on breath tests as well as all other discovery requests. Tom Haas, Chief of Finance, has determined that for each year of the first five years the sections are in effect there will be no fiscal implications for state government as a result of enforcing or administering the sections. The department has no historical data on which to determine the fiscal impact of the sections to units of local government. Mr. Haas also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be clarification of statutory requirements and elimination of confusion regarding procedures required to effect and/or perfect service on the department of certain items allowed or required to be served upon, mailed to, or filed with the department. Anticipated economic costs to persons who are required to comply with the sections as proposed will be the costs of obtaining certified copies, where so required, and the cost of any necessary postage to serve the item(s) in the manner required. Comments on the proposal may be submitted to John C. West, Jr., Chief of Legal Services, Texas Department of Public Safety, Box 4087, Austin, Texas 78773-0001, (512) 465-2890. The amendments and new section are proposed under Texas Civil Statutes, Article 6687b-1, sec.9, and Texas Civil Statutes, Article 67011-5, sec.4A, which provide for administrative license suspensions upon certain alcohol-related violations involving use of a motor vehicle. Such violations are the refusal or failure of breath or blood tests. Texas Civil Statutes, Article 6687b-1, sec.9 and Texas Civil Statutes, Aarticle 67011-5, sec.4A are affected by this proposal. sec.17.1. Scope. The procedures for notice, hearing, and appeal , as well as the procedures for service of the requests, notifications, copies, certified copies, or tangible/documentary evidence, as the case may be, which are
                                                                  contained in this title apply to suspensions and denials arising under the provisions of Administrative License Revocation (ALR), including Texas Civil Statutes, Article 6687b-1 and Texas Civil Statutes, Article 67011-5. sec.17.11. Appeals. (a)-(c) (No change.) (d) To perfect service on the department of a judicial appeal of a final order in a contested ALR case pursuant to 1 TAC sec.159.37 (relating to Appeal of Judge's Decision) and this section, a defendant must send by certified mail a copy of the defendant's appeal petition, certified by the clerk of the court in which the petition is filed, to the department at its headquarters in Austin. The certified copy must be addressed and mailed to Director of Hearings, ALR Program, Post Office Box 15327, Austin, Texas 78761-5327. sec.17.16. Service on the Department of Certain Items Required to be Served on, Mailed to, or Filed with the Department.
                                                                    In addition to service of appeal petitions under sec.17.11(d) of this title (relating to Appeals), the following items, required by this title or 1 TAC sec.sec.159.1-159. 41 (Relating to Rules of Procedure for Administrative License Suspension) to be served on, mailed to, or filed with, the department, shall be served on the department by first class mail, or by certified mail where so specified, addressed to Director of Hearings, ALR Program, Post Office Box 15327, Austin, Texas 78761-5327: (1) service of a defendant's written request for production, pursuant to 1 TAC sec.159.13 (relating to Pre-Hearing Discovery); (2) service of a defendant's written request for maintenance and/or repair records for the instrument used to test defendant's breath specimen, pursuant to 1 TAC sec.159.13 (relating to Pre-Hearing Discovery); and (3) service of tangible/documentary evidence by defendant on the department at least five days before a telephone hearing, pursuant to 1 TAC sec.159.25 (relating to Telephone Hearing). This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 16, 1995. TRD-9506556 James R. Wilson Director Texas Department of Public Safety Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 465-2890 Chapter 31. Standards For An Approved Motorcycle Operator Training Course 37 TAC sec.31.5 The Texas Department of Public Safety proposes an amendment to sec.31.5, concerning standards for an approved motorcycle operator training course. Amendment changes the title of the course for consistency and states all persons must provide a certificate documenting completion of the course in order to waive the motorcycle skills test. Tom Haas, Chief of Finance, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. There will be no effect on local employment or the local economy. Mr. Haas also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be a convenience to the public in obtaining a motorcycle license by not having to take the skills test. There will be no effect on small businesses. The anticipated economic cost to persons who are required to comply with the section as proposed will be the $55 cost of the Department-Approved Basic Motorcycle Operator Training Course. Comments on the proposal may be submitted to John C. West, Jr., Chief of Legal Services, Texas Department of Public Safety, Box 4087, Austin, Texas, 78773- 0001, (512) 465-2890. The amendment is proposed under Texas Civil Statutes, Article 6687b, sec.1A, which provide the Texas Department of Public Safety with the authority to adopt rules that it determines are necessary to effectively administer this act. Texas Civil Statutes, Article 6687b, sec.1A is affected by this proposal. sec.31.5. Verification of Course Completion by a Minor. (a) The sponsor will issue a Texas Driver Education Certificate (form DL-41A) to all students who have
                                                                      [a student who is 15 years old but less than 18 years old and who has] successfully completed the Department-Approved Basic Motorcycle Operator Training Course
                                                                        [approved basic motorcycle operator training course]. The DL-41A is issued to verify that a
                                                                          [the] student age 15 or over,
                                                                            has met the educational and training requirements for a motorcycle driver's
                                                                              [operator's] license. The DL-41A is also issued to verify that a student has successfully completed the training requirements to qualify for a motorcycle driver's license skills test waiver, providing the student already has an unrestricted Class A, B, or C driver's license.
                                                                                A Department of Public Safety serialized completion card will be issued by the course sponsor to every student completing the approved advanced motorcycle operator training course. (b) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 18, 1995. TRD-9506551 James R. Wilson Director Texas Department of Public Safety Earliest possible date of adoption: July 7, 1995 For further information, please call: (512) 465-2890