IN ADDITION The Texas Register is required by statute to publish certain documents, including applications to purchase control of state banks, notices of rate ceilings, changes in interest rate and applications to install remote service units, and consultant proposal requests and awards. To aid agencies in communicating information quickly and effectively, other information of general interest to the public is published as space allows. Office of the Consumer Credit Commissioner Notice of Rate Ceilings The Consumer Credit Commissioner of Texas has ascertained the following rate ceilings by use of the formulas and methods described in Title 79, Texas Civil Statutes, Article 1.04, as amended (Texas Civil Statutes, Article 5069-1.04). graphic Issued in Austin, Texas, on August 20, 1996. TRD-9615749 Leslie L. Pettijohn Commissioner Office of Consumer Credit Commissoner Filed: October 30, 1996 Health and Human Services Commission Public Notice The Health and Human Services Commission State Medicaid Office has received approval from the Health Care Financing Administration to amend the Title XIX Medical Assistance Plan by Transmittal Number 96-17, Amendment Number 518. The amendment clarifies coverage of hearing aid services. The amendment is effective September 3, 1996. If additional information is needed, please contact Genie DeKneef, Texas Department of Health, at (512) 338-6509. Issued in Austin, Texas, on October 25, 1996. TRD-9615525 Marina S. Henderson Executive Deputy Commissioner Health and Human Services Commission Filed: October 24, 1996 Texas Department of Housing and Community Affairs Announcement of Contract Awards The Texas Department of Housing and Community Affairs announces that the units of general local government listed as follows have been selected as contract recipients for the Community Development Marginal Funds under the Texas Community Development Program established pursuant to Texas Government Code, Chapter 2306, sec.2306.098. Agua Dulce-$264,446, Atlanta-$157,272, Burnet-$121,319, Collinsville-$250,000, Eden-$147,710, Edna-$129,988, Eustac-$250,000, Groveton-$157,132, Hempstead- $319,527, La Grulla-$356,032, Lefors-$208,501, Pecos City-$200,891, Post- $181,378, Roby-$171,542, Silsbee-$182,957, and Thorndale-$44,760. The Texas Department of Housing and Community Affairs announces that the units of general local government listed as follows have been selected as contract recipients for the Community Development Marginal Funds under the Texas Community Development Program established pursuant to Texas Government Code, Chapter 2306, sec.2306.098. Aransas County-$500,000, Atascosa County-$500,000, Brooks County-$500,000, Cameron County-$500,000, Cameron County-$70,750, Dimmit County-$475,000, Dimmit County-$18,500, Ector County-$476,280, Ector County-$50,000, El Paso County- $370,000, Gillespie County - $500,000, Glasscock County-$500,000, Karnes County- $20,645, Kleberg County-$27,750, La Salle County-$500,000, Maverick County- $500,000, Maverick County-$100,000, Midland County-$414,500, Nueces County- $500,000, Presidio County-$500,000, Starr County-$500,000, Starr County-$90,750, Uvalde County-$82,000, Webb County-$500,000, Webb County-$98,625, and Zavala County-$475,000. A contract is not effective until executed by the unit of general local government and the Executive Director of the Texas Department of Housing and Community Affairs. Issued in Austin, Texas, on October 30, 1996. TRD-9615747 Larry Paul Manley Executive Director Texas Department of Housing and Community Affairs Filed: October 30, 1996 Notice of Administrative Hearing (MHD1996000674D) Manufactured Housing Division Tuesday, November 19, 1996, 9:00 a.m. State Office of Administrative Hearing, 300 West 15th Street, Suite 502 Austin, Texas AGENDA Administrative Hearing before an administrative law judge of the State Office of Administrative Hearings in the matter of Texas Department of Housing and Community Affairs vs John Bruno Amaro dba Oasis Mobile Home Sales and Service to hear alleged violations of the Texas Manufactured Housing Standards Act, Texas Revised Statutes Annotated, articles 5221f, sec.4(f) and 10 Texas Administrative Code, sec.sec.80.51 and 80.121(c) ("the Rules"), by not properly installing a manufactured home; and the Rules, sec.80.28(a), by not properly submitting monthly installation summary reports showing the exact number of homes installed. SOAH 332-96-2018. Department MHD1996000674D. Contact: Jerry Schroeder, P.O. Box 12489, Austin, Texas 78711-2489, (512) 475- 3589. Issued in Austin, Texas, on October 30, 1996. TRD-9615748 Larry Paul Manley Executive Director Texas Department of Housing and Community-Affairs Manufactured Housing Division Filed: October 30, 1996 Texas Department of Insurance The Commissioner of Insurance will hold a public hearing under Docket Number 2267 on December 9, 1996 at 9:00 a. m. in Room 102 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas, to consider a petition by the staff of the Texas Department of Insurance proposing the adoption of amendments to the Homeowners, Dwelling, Farm and Ranch Owners, and Farm and Ranch sections of the Texas Personal Lines Manual (Manual) to establish a premium credit for approved fire protection sprinkler systems for residential property insurance policies and the adoption of the "Inspector's Fire Protection Sprinkler System Report" form and the "Residential Sprinkler System Premium Reduction Certificate" form to be used to demonstrate that the applicant is entitled to the fire protection sprinkler system premium reduction. The petition requests consideration of the addition of a new rule to each section of the Texas Personal Lines Manual: (1) In the Homeowners section, staff proposes adding new Rule VI-L, "Reduction in Homeowners Premium -- Automatic Sprinkler System" and redesignating existing Rule VI-L, "Rate and Premium Calculation Rule" as Rule VI-M, "Rate and Premium Calculation Rule." (2) In the Dwelling section, staff proposes adding new subsection 5, "Reduction in Dwelling Premium -- Automatic Sprinkler System" to Rule VI-C, Additional Premium Modifications. (3) In the Farm and Ranch Owners section, staff proposes adding new Rule VI-L, "Reduction in Farm and Ranch Owners Premium -- Automatic Sprinkler System." (4) In the Farm and Ranch section, staff proposes adding new subsection 4, "Reduction in Farm and Ranch Dwelling Premium -- Automatic Sprinkler System" to Rule VI-D, Additional Premium Modifications. These rules provide a mandatory insurance premium reduction for policyholders who have installed a fire protection sprinkler system in the policyholder's residence. The proposed rules also establish the amount of the premium reduction and state that the premium reduction applies to the total homeowners premium, the dwelling fire and lightning premium, the farm and ranch owners dwelling premium, and the farm and ranch fire and lightning premium respectively. The staff proposal includes amending the current rules governing the rating of sprinklered risks as follows: (1) In the Homeowners section, Manual Rule VI-F would be amended to add a note that specifies that risks with sprinkler systems complying with NFPA 13D will be referred to new Manual Rule VI-L for the applicable credit. (2) In the Dwelling section, Manual Rule VI-B would be amended to add a note that specifies that risks with sprinkler systems complying with NFPA 13D will be referred to new Manual Rule VI-C.5. for the applicable credit. (3) In the Farm and Ranch Owners section, Manual Rule VI-F would be amended to add a note that specifies that risks with sprinkler systems complying with NFPA 13D will be referred to new Manual Rule VI-L for the applicable credit. (4) In the Farm and Ranch section, Manual Rule VI-B would be amended to add a note that specifies that risks with sprinkler systems complying with NFPA 13D will be referred to new Manual Rule VI-D. 4. for the applicable credit. These rules provide that risks having a sprinkler system installed in accordance with National Fire Protection Association Standard 13 should be submitted to the Texas Department of Insurance for applicable premium charges. The staff proposal adds a reference for sprinklered risks complying with NFPA 13D that states the residential fire protection sprinkler system premium reduction rules apply. Staff proposes the consideration and adoption of an "Inspector's Fire Protection Sprinkler System Report" form to be used by inspectors of residential sprinkler systems. The form will be used to certify that the residential sprinkler system meets the standards established by the Texas Commission on Fire Protection and qualifies for a premium reduction under Article 5.33B of the Texas Insurance Code. The proposed "Inspector's Fire Protection Sprinkler System Report" form must be completed by a licensed Responsible Managing Employee (RME) dwelling inspector or a sprinkler contractor registered by the Texas Commission on Fire Protection and it must be provided to the Texas Department of Insurance. Staff proposes the adoption of a "Residential Sprinkler System Premium Reduction Certificate." The Certificate states that the applicant is entitled to a premium reduction on the applicant's residential property insurance. The Certificate will be issued by the Texas Department of Insurance upon receipt of an "Inspector's Fire Protection Sprinkler System Report" form that certifies that the residential fire protection sprinkler system meets applicable standards and qualifies the applicant's property for a premium reduction. Staff proposes the adoption of premium reduction credits of 8.0% and 12% for policyholders who obtain a Residential Sprinkler System Premium Reduction Certificate. The credit was determined after reviewing data supplied by the Insurance Services Office (ISO) regarding Automatic Sprinkler System Discounts in a dwelling. The ISO provides for a maximum 8.0% credit for automatic sprinklers located in all areas except the attic, bathroom, closet and attached structure areas that are protected by a fire detector. This criteria is similar to the criteria contained in the Homeowners Section of the Personal Lines Manual. Staff believes that the NFPA13D standards adopted by the Texas Commission on Fire Protection are comparable in many respects to the 8.0% discount utilized by ISO and authorized in the Personal Lines Manual. Based on this analysis staff proposes an 8.0% premium reduction for homeowners, and Farm and Ranch Owners insurance. The 8.0% premium reduction applies to the total homeowners premium, and the total Farm and Ranch Owners Premium. Staff also determined that for Dwelling and Farm and Ranch policies the fire rate comprises a greater portion of the premium. For this reason staff proposes a 12% premium reduction for Dwelling and Farm and Ranch policies. The 12% premium reduction applies to the actual fire premium for Dwelling and Farm and Ranch policies. Due to the lack of Texas data, the premium reductions proposed by staff are judgmental. Staff will monitor the Texas experience developed under this program and propose any modifications to the premium reduction amounts deemed necessary. Insurance Code Article 5.33B, entitled Reduction in Homeowners Insurance Premiums for Approved Sprinkler Systems, was enacted by the 74th Texas Legislature and became effective September 1, 1995. Section 2 of Article 5.33B, states, "A policyholder of a one-family or two-family dwelling is entitled to a premium reduction for homeowners insurance coverage if the policyholder has installed on the covered property a fire protection sprinkler system that is approved under this article by an inspector." Article 5.33B requires that an inspector must inspect the property and file with the Texas Department of Insurance a written report that states whether the sprinkler system meets applicable standards. Article 5.33B defines applicable standards as the standards for a fire protection sprinkler system that are adopted by rule by the Texas Commission on Fire Protection. Article 5.33B provides that if the inspector's report indicates that the property qualifies for a premium reduction the Texas Department shall issue a premium reduction certificate entitling the applicant to a premium reduction. Article 5.33B also requires the Commissioner of Insurance to establish, by rule, the amount of the premium reduction applicable to a homeowners insurance policy. Effective August 26, 1996, the Texas Commission on Fire Protection adopted amendments to several rules and added a new rule to Title 37 Texas Administrative Code Chapter 541 concerning the regulation of the business of inspecting, planning, selling, servicing, installing, and maintaining fire protection sprinkler systems. The new and revised rules establish the minimum standards for a fire protection sprinkler system in one and two-family dwellings and authorize certain licensed inspectors--a dwelling type responsible managing employee--to conduct a premium reduction inspection of a fire protection sprinkler system in a one or two-family dwelling. Staff's proposed rules, forms and rates are necessary to implement the provisions of Article 5.33B. The proposed rules establish the amount of the discount, incorporate the fire protection sprinkler system standards adopted by the Commissioner, and require the presentation of a valid certificate form. The proposal also prescribes the "Inspector's Fire Protection Sprinkler System Report" form and "Residential Sprinkler System Premium Reduction Certificate" form that will be used with this program. The Commissioner has jurisdiction of this matter pursuant to the Insurance Code, Articles 5.33B, 5.96, and 5.98. Copies of the full text of the staff petition and the proposed endorsements and Manual rules are available for review in the Office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas, 78714-9104. For further information or to request copies of the petition and proposed amendments, please contact Angie Arizpe at (512) 463-6326. (Refer to Reference Number P-1096-50-I) Comments on the proposed changes must be submitted in writing within 30 days after publication of the proposal in the Texas Register to the Office of the Chief Clerk, P. O. Box 149104, MC 113-2A, Austin, Texas 78714-9104. An additional copy of the comment should be submitted to David Durden, Deputy Commissioner for Property and Casualty Lines, P. O. Box 149104, MC 104-5A, Austin, Texas 78714-9104. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts action taken under this article from the requirements of the Administrative Procedure Act (Government Code, Title 10, Chapter 2001). Issued in Austin, Texas, on October 30, 1996. TRD-9615772 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Filed: October 30, 1996 Notice of Public Hearings The Commissioner of Insurance will hold a public hearing under Docket Number 2266 on December 9, 1996, at 9:00 a.m., in Room 102 of the Texas Department of Insurance Building, 333 Guadalupe Street, Austin, Texas, to consider a petition by staff of the Texas Department of Insurance proposing: (1) the adoption of form and rating rules in the Homeowners, Dwelling, Farm and Ranch, and Farm and Ranch Owners Sections of the Texas Personal Lines Manual (Manual) to govern the writing of policy forms and endorsements under the Property Protection Program (PPP); and (2) the adoption of premium charges and premium reductions for new endorsements adopted solely for use under the PPP. If adopted, the proposed rates and rules will be contained in a new subsection VII, entitled "Property Protection Program," in each of the four sections of the Manual. The proposed rules provide general instructions, eligibility requirements, a listing of optional endorsements and explanations for use, and rates and rating methods for the writing of PPP policy forms and endorsements. The proposed rates include premium charges and premium reductions for new endorsements adopted solely for use under the PPP. The adoption of these proposed rules and rates would not affect the rules and rates currently in effect that govern the writing of homeowners, dwelling, farm and ranch, and farm and ranch owners policy forms and endorsements adopted under Article 5.35 of the Insurance Code for general use in the entire state of Texas. The following is a summary of the proposed additions to the homeowners, dwelling, farm and ranch and farm and ranch owners sections of the Manual. These additions include proposed additions to or reductions in premium for new endorsements adopted solely for use under the PPP. A. Homeowners Section. Rule VII, Property Protection Program. 1. Rule VII-A--General. This rule provides general instructions for the writing of the PPP homeowners policy, which insurers must offer through Homeowners Policy Form HO-A, and for endorsement forms adopted solely for use under the PPP. The rule also provides that in addition to the rules in subsection VII, all other rules contained in the Homeowners Section of the Manual governing the writing of Form HO-A, as well as optional additional coverages and endorsements to Form HO-A that have been adopted for use under the PPP and which are not in conflict with the proposed rules in subsection VII, shall apply to the writing of PPP homeowners policy and endorsement forms. The rule further provides that the flexibility percentages filed by individual companies for Texas Homeowners Policy Form HO-A will apply to the PPP homeowners policy and endorsement forms. 2. Rule VII-B--Eligibility. This rule: (i) provides that a PPP homeowners policy (Form HO-A) may only be issued for property located in a Class 1 underserved area (as initially designated by Commissioner's Order Number 96-1118 (September 24, 1996) pursuant to Article 5.35-3, sec.1), and includes a chart listing the Class 1 areas by ZIP Code, city and county; (ii) states that windstorm, hurricane and hail coverage for property located in an area designated as a catastrophe area by the Commissioner may not be provided under the PPP, and requires that an endorsement excluding such coverage be attached to each PPP homeowners policy issued; and (iii) states that PPP homeowners coverage may only be provided by Homeowners Policy Form HO-A. 3. Rule VII-C--Optional Endorsements. This rule lists the endorsements that may be attached to a PPP homeowners policy (Form HO-A): (i) seven new PPP endorsements adopted by Commissioner's Order Number 95-1285 (December 8, 1995) pursuant to Article 5.35-3 and (ii) thirty endorsements adopted by Commissioner's Order Number 95-1285 that had previously been adopted pursuant to Article 5.35 for attachment to Texas Homeowners Policy Form HO-A. The rule includes a general description of each of the seven new endorsements adopted pursuant to Article 5.35-3. This description specifies whether the attachment of the endorsement requires a reduction in premium, an additional premium, or no additional premium. The proposed rule provides that the rates and rating rules, as set forth in the Homeowners Section of the Manual for the attachment of the thirty endorsements which previously have been adopted pursuant to Article 5.35 for attachment to Texas Homeowners Policy Form HO-A, also shall apply to the attachment of these endorsements to a PPP homeowners policy. 4. Rule VII-D--Rating Rules. This rule requires that the basic premium for the PPP homeowners policy (Form HO-A) is to be determined in the same manner and using the same premium charts as for a Texas Homeowners Policy Form HO-A. The proposed rule specifies the rates and rating methods for those PPP endorsements requiring a reduction in or addition to premium when attached to a PPP homeowners policy (Form HO-A) and proposes the following reductions or additions for these endorsements: (a) Exclusion of Coverage, Endorsement Number (PPP) HO-700 (reduction in premium for exclusion of coverage for the perils of (i) vandalism and malicious mischief and/or (ii) theft): Premium reductions for exclusions of vandalism and malicious mischief coverage vary by territory, from $12 to $1.00, as fully detailed in the petition and rule. Premium reductions for exclusions of theft coverage vary by territory and by amount of insurance, as fully detailed in a chart in the petition and rule. (b) Accidental Discharge, Leakage, or Overflow of Water or Steam and Freezing, Endorsement Number (PPP) HO-702 (additional premium): (Calculation of the additional premium to be charged for this endorsement requires input from insurers. This rate will be determined under a separate rulemaking procedure). (c) Collapse of Building, Breakage of Glass, and Falling Objects, Endorsement Number (PPP) HO-703 (additional premium): An additional premium of $1.00, regardless of the limit of liability, is charged for the addition of these perils. B. Dwelling Section. Rule VII, Property Protection Program. 1. Rule VII-A--General. This rule provides general instructions for the writing of the PPP dwelling policy, which insurers must offer through Texas Dwelling Policy Form TDP-1, and for endorsement forms adopted solely for use under the PPP. This rule also requires that all other rules contained in the Dwelling Section of the Manual which govern the writing of Form TDP-1, as well as optional additional coverages and endorsements to Form TDP-1 that have been adopted for use under the PPP and which are not in conflict with the proposed rules in subsection VII, shall apply to the writing of PPP dwelling policy and endorsement forms. The rule further provides that the flexibility percentages filed by individual companies which are applicable to the Texas Dwelling Policy Form TDP-1 will apply to the PPP dwelling policy and endorsement forms. 2. Rule VII-B--Eligibility. This rule: (i) provides that a PPP dwelling policy (Form TDP-1) may only be issued for property located in a Class 1 underserved area, (as initially designated by Commissioner's Order Number 96-1118 (September 24, 1996) pursuant to Article 5.35-3, sec.1) and includes a chart listing the Class 1 areas by ZIP Code, city and county; (ii) states that windstorm, hurricane and hail coverage for property located in an area designated as a catastrophe area by the Commissioner may not be provided under the PPP, and requires that an endorsement excluding such coverage be attached to each dwelling policy issued; and (iii) states that PPP dwelling coverage may only be provided by Dwelling Policy Form TDP-1. 3. Rule VII-C--Optional Endorsements. This rule lists the endorsements that may be attached to a PPP dwelling policy (Form TDP-1): (i) eight new PPP endorsements adopted by Commissioner's Order Number 95-1285 (December 8, 1995) pursuant to Article 5.35-3 and (ii) twelve endorsements adopted by Commissioner's Order Number 95-1285 that had previously been adopted pursuant to Article 5.35 for attachment to Texas Dwelling Policy Form TDP-1. The rule includes a general description of each of the eight new endorsements adopted pursuant to Article 5.35-3. This description specifies whether the attachment of the endorsement requires a reduction in premium, an additional premium, or no additional premium. The proposed rule provides that the rates and rating rules, as set forth in the Dwelling Section of the Manual for the attachment of the twelve endorsements which previously have been adopted pursuant to Article 5.35 for attachment to Texas Dwelling Policy Form TDP-1, also shall apply to the attachment of these endorsements to a PPP dwelling policy. 4. Rule VII-D--Rating Rules. This rule requires that the premium for the PPP dwelling policy (Form TDP-1) is to be determined in the same manner and using the same premium charts as for a Texas Dwelling Policy Form TDP-1. The proposed rule specifies the rates and rating methods for those PPP endorsements requiring a reduction in or addition to premium when attached to a PPP dwelling policy (Form TDP-1) and proposes the following reductions or additions for these endorsements: (a) Accidental Discharge, Leakage, or Overflow of Water or Steam and Freezing, Endorsement Number (PPP) TDP-031 (additional premium): (Calculation of the additional premium to be charged for this endorsement requires input from insurers. This rate will be determined under a separate rulemaking procedure). (b) Collapse of Building, Breakage of Glass, and Falling Objects, Endorsement Number (PPP) TDP-032 (additional premium): An additional premium of $1.00, regardless of the limit of liability, is charged for the addition of these coverages. Deductible adjustment percentage and flex percentage apply to this coverage. This additional premium shall not be less than $1.00. (c) Theft, Endorsement Number (PPP) TDP-033 (additional premium): The additional premiums for adding theft coverage vary by territory and by amount of insurance, as fully detailed in a chart in the petition and rule. C. Farm and Ranch Section. Rule VII, Property Protection Program. 1. Rule VII-A--General. This rule provides general instructions for the writing of the PPP farm and ranch policy, which insurers must offer through Texas Farm and Ranch Policy Form TFR-1, and for endorsement forms adopted solely for use under the PPP. The rule also requires that all other rules contained in the Farm and Ranch Section of the Manual which govern the writing of Form TFR-1, as well as optional additional coverages and endorsements to Form TFR-1 that have been adopted for use under the PPP and which are not in conflict with the proposed rules in subsection VII, shall apply to the writing of PPP farm and ranch policy and endorsement forms. The rule further provides that the flexibility percentages filed by individual companies which are applicable to the Texas Farm and Ranch Policy Form TFR-1 will apply to the PPP farm and ranch policy and endorsement forms. 2. Rule VII-B--Eligibility. This rule: (i) provides that a PPP farm and ranch policy (Form TFR-1) may only be issued for property located in a Class 1 underserved area (as initially designated by Commissioner's Order Number 96-1118 (September 24, 1996) pursuant to Article 5.35-3, sec.1) and includes a chart listing the Class 1 areas by ZIP Code, city and county; (ii) states that windstorm, hurricane and hail coverage for property located in an area designated as a catastrophe area by the Commissioner may not be provided under the PPP, and requires that an endorsement excluding such coverage be attached to each PPP farm and ranch policy issued; and (iii) states that PPP farm and ranch coverage may only be provided by Farm and Ranch Policy Form TFR-1. 3. Rule VII-C--Optional Endorsements. This rule lists the endorsements that may be attached to a PPP farm and ranch policy (Form TFR-1): (i) ten new PPP endorsements adopted by Commissioner's Order Number 95-1285 (December 8, 1995) pursuant to Article 5.35-3 and (ii) fourteen endorsements adopted by Commissioner's Order Number 95-1285 that had previously been adopted pursuant to Article 5.35 for attachment to Texas Farm and Ranch Policy Form TFR-1. The rule includes a general description of each of the ten new endorsements adopted pursuant to Article 5.35-3. This description specifies whether the attachment of the endorsement requires a reduction in premium, an additional premium, or no additional premium. The proposed rule provides that the rates and rating rules, as set forth in the Farm and Ranch Section of the Manual for the attachment of the fourteen endorsements which previously have been adopted pursuant to Article 5.35 for attachment to Texas Farm and Ranch Policy Form TFR-1, also shall apply to the attachment of these endorsements to a PPP farm and ranch policy. 4. Rule VII-D--Rating Rules. This rule requires that the premium for the PPP farm and ranch policy (Form TFR-1) is to be determined in the same manner and using the same premium charts as for a Texas Farm and Ranch Policy Form TFR-1. The proposed rule specifies the rates and rating methods for those PPP endorsements requiring a reduction in or addition to premium when attached to a PPP farm and ranch policy (Form TFR-1) and proposes the following reductions and additions for these endorsements: (a) Accidental Discharge, Leakage, or Overflow of Water or Steam and Freezing, Endorsement Number (PPP) TFR-081 (additional premium): (Calculation of the additional premium to be charged for this endorsement requires input from insurers. This rate will be determined under a separate rulemaking procedure). (b) Collapse of Building, Breakage of Glass, and Falling Objects, Endorsement Number (PPP) TFR-082 (additional premium): An additional premium of $1.00, regardless of the limit of liability, is charged for the addition of these coverages. Deductible adjustment percentage and flex percentage apply to this coverage. This additional premium shall not be less than $1.00. (c) Theft, Endorsement Number (PPP) TFR-083 (additional premium): The additional premiums for adding theft coverage vary by territory and by amount of insurance, as fully detailed in a chart in the petition and rule. D. Farm and Ranch Owners Section. Rule VII, Property Protection Program. 1. Rule VII-A--General. This rule provides general instructions for the writing of the PPP farm and ranch owners policy, which insurers must offer through Farm and Ranch Owners Policy Form FRO-A, and for endorsement forms adopted solely for use under the PPP. The rule also requires that all other rules contained in the Farm and Ranch Owners Section of the Manual which govern the writing of Form FRO-A, as well as optional additional coverages and endorsements to Form FRO-A that have been adopted for use under the PPP and which are not in conflict with the proposed rules in subsection VII, shall apply to the writing of PPP farm and ranch owners policy and endorsement forms. The rule further provides that the flexibility percentages filed by individual companies for Texas Farm and Ranch Owners Policy Form FRO-A will apply to the PPP homeowners policy and endorsement forms. 2. Rule VII-B--Eligibility. This rule: (i) provides that a PPP farm and ranch owners policy (Form FRO-A) may only be issued for property located in a Class 1 underserved area (as initially designated by Commissioner's Order Number 96-1118 (September 24, 1996) pursuant to Article 5.35-3, sec.1) and includes a chart listing the Class 1 areas by ZIP Code, city and county; (ii) states that windstorm, hurricane and hail coverage for property located in an area designated as a catastrophe area by the Commissioner may not be provided under the PPP, and requires that an endorsement excluding such coverage be attached to each PPP farm and ranch owners policy issued; and (iii) states that PPP farm and ranch owners coverage may only be provided by Farm and Ranch Owners Policy Form FRO-A. 3. Rule VII-C--Optional Endorsements. This rule lists the endorsements that may be attached to a PPP farm and ranch owners policy (Form FRO-A): (i) ten new PPP endorsements adopted by Commissioner's Order Number 95-1285 (December 8, 1995) pursuant to Article 5.35-3 and (ii) twenty three endorsements adopted by Commissioner's Order Number 95-1285 that had previously been adopted pursuant to Article 5.35 for attachment to Texas Farm and Ranch Owners Policy Form FRO-A. The rule includes a general description of each of the ten new endorsements adopted pursuant to Article 5.35-3. This description specifies whether the attachment of the endorsement requires a reduction in premium, an additional premium, or no additional premium. The proposed rule provides that the rates and rating rules, as set forth in the Farm and Ranch Owners Section of the Manual for the attachment of the twenty-three endorsements which previously have been adopted pursuant to Article 5.35 for attachment to Texas Farm and Ranch Owners Policy Form FRO-A, also shall apply to the attachment of these endorsements to a PPP farm and ranch owners policy. 4. Rule VII-D--Rating Rules. This rule requires that the basic premium for the PPP farm and ranch owners policy (Form FRO-A) is to be determined in the same manner and using the same premium charts as for a Texas Farm and Ranch Owners Policy Form FRO-A. The proposed rule specifies the rates and rating methods for those PPP endorsements requiring a reduction in or addition to premium when attached to a PPP farm and ranch owners policy (Form FRO-A) and proposes the following rates for each of these endorsements: (a) Exclusion of Coverage, Endorsement Number (PPP) FRO-800 (reduction in premium for exclusion of coverage for the perils of (i) vandalism and malicious mischief and/or (ii) theft): Premium reductions for exclusions of vandalism and malicious mischief coverage vary by territory, from $12 to $1.00, as fully detailed in the petition and rule. Premium reductions for exclusions of theft coverage vary by territory and by amount of insurance, as fully detailed in a chart in the petition and rule. (b) Accidental Discharge, Leakage, or Overflow of Water or Steam and Freezing, Endorsement Number (PPP) FRO-803 (additional premium): (Calculation of the additional premium to be charged for this endorsement requires input from insurers. This rate will be determined under a separate rulemaking procedure). (c) Collapse of Building, Breakage of Glass, and Falling Objects, Endorsement Number (PPP) FRO-804 (additional premium): An additional premium of $1.00, regardless of the limit of liability, is charged for the addition of these perils. The PPP is authorized by Article 5.35-3 of the Insurance Code, which was enacted by the 74th Legislature in HB 1367 (Acts 1995, 74th Legislative, chapter 415, sec.3, page. 3007, effective August 28, 1995). Article 5.35-3 provides that the Commissioner by rule may determine and designate areas as underserved areas for residential property insurance. In regards to this determination of underserved areas, Article 5.35-3, sec.1(a) directs the Commissioner to consider whether residential property insurance is not reasonably available to a substantial number of owners of insurable property in the underserved area, and also to consider any other factors determined to be relevant by the Commissioner. Subsection 1(a) of the article defines residential property insurance for purposes of the PPP as insurance coverage against loss to real or tangible personal property at a fixed location provided in a homeowners policy, residential fire and allied lines policy, or farm and ranch owners policy. Subsection 1(b) of the article prohibits the PPP from including windstorm and hail insurance coverage for a risk eligible for that coverage under Article 21.49 of the Insurance Code. Under Article 5.35-3, sec.2, all insurers authorized to write property or casualty insurance in this state and writing property or casualty insurance in this state, including those insurers licensed under the Insurance Code, Chapters 18 (Lloyd's plans) and 19 (reciprocal exchanges), are authorized to write insurance on the forms adopted under Article 5.35-3. Article 5.35-3, sec.3 authorizes the Commissioner to adopt policy forms for residential property insurance specifically for use in the designated underserved areas. This authority necessarily also includes the adoption of the manual rules governing the writing of policy forms and endorsements. Section 3 further provides that the policy forms adopted pursuant to Article 5.35-3 shall include a basic policy covering fire and allied lines perils, with endorsements providing that the adopted policy forms may be used by all insurers writing insurance in underserved areas. Article 5.35-3, sec.4 states that the rates for residential property insurance subject to Article 5.35-3 shall be determined in accordance with the provisions of the Insurance Code applicable to each insurer. Article 5.35-3, sec.5 requires all insurers that must participate in the PPP in accordance with section 2 of the article to make available to their agents, who in turn must offer to insureds in underserved areas, the full range of coverages promulgated under Article 5.35-3, subject to applicable rates and underwriting guidelines of each such insurer. Article 5.35, sec.sec.6-7 offer tax and other incentives to encourage insurers to participate actively in the PPP. The Commissioner has jurisdiction of this matter pursuant to the Insurance Code, Articles 5.35-3, 5.96 and 5.98. Copies of the full text of the staff petition and the proposed manual rules, rating methods, rates and premiums are available for review in the Office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas, 78714-9104. For further information or to request copies of the petition and proposed amendments, please contact Angie Arizpe at (512) 463-6326 (refer to Reference Number P-1096-49-I). Comments on the proposed changes must be submitted in writing within 30 days after publication of the proposal in the Texas Register to the Office of the Chief Clerk, P.O. Box 149104, MC113-2A, Austin, Texas 78714-9104. An additional copy of the comment should be submitted to Lyndon Anderson, Associate Commissioner for Property and Casualty Division, P.O. Box 149104, MC103-1A, Austin, Texas 78714-9104. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts action taken under this article from the requirements of the Administrative Procedure Act (Government Code, Title 10, chapter 2001). Issued in Austin, Texas, on October 30, 1996. TRD-9615773 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Filed: October 30, 1996 Legislative Budget Board Tax Relief Amendment Implementation-Limit on Growth of Certain State Appropriations LEGAL REFERENCES Article VIII, sec.22, Texas Constitution, approved by the voters in November 1978, states that: In no biennium shall the rate of growth of appropriations from state tax revenues not dedicated by this constitution exceed the estimated rate of growth of the state's economy. The Legislature shall provide by general law procedures to implement this subsection. This provision does not alter, amend, or repeal Article III, sec.49a, of the Texas Constitution, the well known "pay-as-you-go" provision. To implement this provision of the Texas Constitution, the Sixty-sixth Legislature enacted Article 9, Chapter 302, Laws 1979 (Texas Government Code Annotated, sec.316) which placed with the Legislative Budget Board the responsibility for initial approval of a limitation on the growth of certain state appropriations. A part of the procedure for approving the limitation is set forth in sec.316.003 and sec.316.004 as follows: Section 316.003. Before the Legislative Budget Board approves the items of information required by sec.316.002, the board shall publish in the Texas Register the proposed items of information and a description of the methodology and sources used in the calculations. Section 316.004. Not later than December 1 of each even-numbered year, the Legislative Budget Board shall hold a public hearing to solicit testimony regarding the proposed items of information and the methodology used in making the calculations required by sec.316.002. The items of information mentioned above are identified as follows in sec.316.002: (1) the estimated rate of growth of the state's economy from the current biennium to the next biennium; (2) the level of appropriations for the current biennium from state tax revenues not dedicated by the constitution; and (3) the amount of state tax revenues not dedicated by the constitution that could be appropriated for the next biennium within the limit established by the estimated rate of growth of the state's economy. In this memorandum, each item of information is taken up in the order listed above. Estimated Rate of Growth of the State's Economy A definition of the "estimated rate of growth of the state's economy" is set forth in paragraph (b) of sec.316.002 in the following words: (b) Except as provided by Subsection (c), the board shall determine the estimated rate of growth of the state's economy by dividing the estimated Texas total personal income for the next biennium by the estimated Texas total personal income for the current biennium. Using standard statistical methods, the board shall make the estimate by projecting through the biennium the estimated Texas total personal income reported by the United States Department of Commerce or its successor in function. (c) If a more comprehensive definition of the rate of growth of the state's economy is developed and is approved by the committee established by sec.316.005, the board may use that definition in calculating the limit on appropriations. The Commerce Department's Bureau of Economic Analysis defines state personal income as follows: ...the income received by persons from all sources, that is, from participation in production, from both government and business transfer payments, and from government interest. Personal income is the sum of wage and salary disbursements, other labor income, proprietors' income, rental income of persons, personal dividend income, personal interest income and transfer payments, less personal contributions for social insurance. Table 1 displays the Commerce Department's personal income account for Texas for calendar year 1995. The largest component of Texas personal income is wage and salary disbursements, estimated at $232.0 billion during calendar 1995. Salary and wage disbursements are added with other labor income--primarily employer contributions to private pensions and welfare funds--and proprietors' income to arrive at total earnings by place of work. Texas total earnings by place of work reached an estimated $301.3 billion in calendar 1995. In deriving Texas total personal income, two adjustments are made to total earnings by place of work. Personal contributions for social insurance contributions--principally social security payroll taxes paid by employees and self-employed--are deducted. A place-of-residence adjustment is also made to reflect the earnings of workers who cross state borders to live or work. Dividends, interest and rent income are then added, along with transfer payments. The major types of transfer payments include social security, various retirement and unemployment insurance benefits, welfare, and disability and health insurance payments. Texas total personal income is estimated to be $398.5 billion for calendar 1995. The U.S. Department of Commerce reports personal income estimates by calendar quarter and year. Since the state's fiscal year begins on September 1 and ends August 31, an adjustment is required to present these data on a biennial basis. The Legislative Budget Board uses the data for the first three calendar quarters of a year plus the fourth quarter of the preceding year to represent the state's fiscal year. A biennium is the sum of two fiscal years. The historical record of the rate of growth in Texas personal income for the past eleven completed biennia using data published by the U.S. Department of Commerce is shown in Table 4. Forecasting Texas Personal Income In reviewing standard statistical techniques for forecasting or projecting Texas personal income, the Legislative Budget Board has obtained the latest economic forecasts from the following sources: (1) The Perryman Group, (2) WEFA Group, (3) Texas Comptroller of Public Accounts and (4) McGraw-Hill/DRI. These forecasts are based on econometric models developed and maintained by the forecasting services listed. While each forecasting service brings its own approach to the development of economic projections, there are several characteristics common to the econometric models from which the Texas total personal income estimates are derived. First, each assumes that the U.S. economy is the driving force behind Texas economic activity. As a result, forecasts of U.S. economic variables are needed to drive each model. Secondly, each of the econometric models is structural in nature, representing certain assumptions about the structure of the Texas economy, consistent with economic theory. Structural models normally entail detailed modeling of key sectors of the state's economy, followed by statistical testing to establish relationships with other sectors of the economy. Previous memoranda published on the constitutional limit include more detailed discussion of the forecasting methods used. See the following issues of the Texas Register : (5 TexReg 4272), (7 TexReg 3727), (9 TexReg 5219), (11 TexReg 4590) and (13 TexReg 4599), (15 TexReg 6876), (17 TexReg 7700). Table 2 details the Texas personal income growth rates of the various forecasting services for the 1998-99 biennium over the 1996-97 biennium. These forecasts range from 1.1097 or 10.97 percent to 1.1416 or 14.16 percent. Table 5 outlines briefly the sources and dates for the Texas personal income growth rates presented in Table 2. The personal income growth rates shown in Table 2 or any more recent forecasts will be presented to the Legislative Budget Board for its consideration in adopting this item of information. The Board is not limited to one or any combination of the growth rates shown in adopting a Texas personal income growth rate for the 1998-99 biennium. Appropriations from State Tax Revenue Not Dedicated by the Constitution - 1996- 97 Biennium The amount of appropriations from state tax revenue not dedicated by the Constitution in the 1996-97 biennium--the base biennium--is the second item of information to be determined by the Legislative Budget Board. As of October 30, 1996, the staff estimates this amount to be $35,284,216,548. This item multiplied by the estimated rate of growth of Texas personal income from the 1996-97 biennium to the 1998-99 biennium produces the limitation on appropriations for the 1998-99 biennium under Article VIII, Section 22, of the Texas Constitution. Calculating the 1998-99 Limitation The limitation on appropriations of state tax revenue not dedicated by the State Constitution in the 1998-99 biennium may be illustrated by selecting a growth rate and applying it to the 1996-97 appropriations base. This is shown in Table 3, using the lowest and highest growth rates shown in Table 2. Depending on which personal income growth rate is adopted, current estimates suggest a limitation on 1998-99 biennial appropriations from non-dedicated state taxes ranging from $39.2 billion to $40.3 billion. Method of Calculating the 1996-97 Appropriations from State Tax Revenue not Dedicated by the Constitution The amount of appropriations from state tax revenue not dedicated by the Constitution in the 1996-97 biennium--the base biennium--is the second item of information to be determined by the Legislative Budget Board. As of October 30,1996, the staff estimates this item to be $35,284,216,548. This section details the sources of information used in this calculation. Total appropriations for the 1996-97 biennium include those in the General Appropriations Act, House Bill Number 1 (H.B. 1), Seventy-fourth Legislature, plus any additional appropriations made in legislation passed by the Seventy- fourth Legislature for the 1996-97 biennium. Any subsequent appropriations made by the Seventy-fifth Legislature for the 1996-97 biennium would also be included in total appropriations. Section I of Table 6, shows for general revenue related funds the total amount of appropriations, the amount financed from constitutionally dedicated tax revenue, from non-tax revenue and the remainder--the amount financed from tax revenue not dedicated by the Constitution--which is the amount subject to the limitation. General revenue related funds include the General Revenue Fund as well as the Available School Fund, State Textbook Fund and Foundation School Fund. The Game, Fish and Water Safety Account and Department of Insurance Operating Account also receive tax revenue not dedicated by the constitution, which is also included in the calculation of the limitation. I. General Revenue Related Funds A. Appropriations are classified in this table as the following: (1) "estimated to be" line item appropriations and (2) all other line item appropriations. 1. "Estimated to Be" Line Item Appropriations: Each of these items under the subheading "estimated-to-be" may change under certain circumstances. For purposes of this calculation, the fiscal year 1996 amounts are based on actual 1996 expenditures. Amounts for fiscal year 1997 are taken from H.B. 1. 2. All Other Line Item Appropriations: The figure shown for "All Other Line Items" is the difference between total appropriations and the items listed separately as "estimated to be appropriations." (See Table 7.) General revenue related and general revenue consolidated appropriations in Table 7 are from the Fiscal Size Up, 1996-97 Biennium, which was published by the Legislative Budget Board after the Seventy- fourth Legislative Session to summarize information contained in H.B. 1. Appropriation amounts in the Fiscal Size Up are amounts from H.B. 1 adjusted to reflect the Governor's vetoes. General Revenue Consolidated appropriations in both H.B. 1 and the Fiscal Size Up include appropriations that were made from consolidated funds later rededicated by House Bill Number 3050, Seventy-fourth Legislature. The adjustment shown in Table 7 subtracts appropriations from funds rededicated by H.B. 3050 from total appropriations so that the "All Other Line Items" amount reflects the current definition of general revenue related funds. B. Source of Funding - General Revenue Related: Table 6, Part B shows that of the $44,573,434,745 of general revenue related fund appropriations, $35,188,747,822 is subject to the limitation because it is financed from state tax revenue not dedicated by the Constitution. By subtracting the appropriations financed from the known sources listed in items one through thirteen from the total of $44,573,434,745, it can be established that appropriations totaling $39,036,436,000 remain to be financed. (See item 14.) Dedicated state tax revenues deposited into general revenue related funds are estimated to total $2,070,955,087 during the 1996-97 biennium. Appropriations from general revenue related funds financed from non-tax revenue are estimated at $7,313,731,836 for the 1996-97 biennium. (See third column.) General revenue related fund appropriations to be financed from non-dedicated tax revenue are shown in column four. This amount totals $35,188,747,822 for the 1996-97 biennium. II. Boat and Boat Motor Sales and Use Tax The state imposes a sales and use tax on boats and boat motors, of which 95% is deposited into the General Revenue Fund and the remaining 5% is deposited into the Game, Fish and Water Safety Account. The portion of this tax which is deposited into the Game, Fish and Water Safety Account is included as an appropriation from tax revenue not dedicated by the constitution. This amount is based on actual 1996 revenues and estimated 1997 boat and boat motor sales and use tax collections. III. Insurance Maintenance Taxes There are a number of taxes paid by insurance companies, the rates of which are set by the Department of Insurance with the statutory intent of producing the revenue necessary to help pay the administrative costs of the Department. Over a period of years, the revenue from these taxes should match the portion of the Department's administrative costs that is subject to the limitation on the growth of appropriations. In specific years this match may be imperfect because of additions to or reductions in balances in the various funds controlled by the Department. The amount shown as an appropriation from non-dedicated state tax revenues is based on actual 1996 revenues and estimated 1997 maintenance tax collections. Grand Total A grand total of $44,668,903,471 in 1996-97 biennial appropriations is included in this analysis. Of this amount, $2,070,955,087 is financed out of taxes dedicated by the State Constitution. Another $7,313,731,836 is financed out of non-tax revenue. The remaining $35,284,216,548 is financed out of tax revenue not dedicated by the State Constitution. This is the amount which serves as a base for calculating the limitation on 1998-99 biennial appropriations from non- dedicated state taxes, as required by Article VIII, sec.22, of the Texas Constitution. [graphic] [graphic] [graphic] [graphic] [graphic] [graphic] [graphic] [graphic] [graphic] Issued in Austin, Texas, on October 29, 1996. TRD-9615743 John M. Keel Director Legislative Budget Board Filed: October 29, 1996 Texas Department of Mental Health and Mental Retardation Notice of Public Hearing The Texas Department of Mental Health and Mental Retardation will hold a public hearing at 2:00 p.m., Friday, November 15, 1996, in the auditorium of the TDMHMR Central Office (Building 2) at 909 West 45th Street in Austin, Texas. The purpose of this hearing will be to accept oral and written testimony concerning proposed department rules governing community mental health and mental retardation centers (Chapter 401, Subchapter G). A copy of the proposed rules may be requested from the department's Office of Policy Development, P. O. Box 12668, Austin, Texas 78711 or by calling (512) 206-4516. Individuals requiring an interpreter for the hearing impaired should contact the Office of Policy Development, by calling (512) 206-4516 at least 72 hours prior to the hearing. Issued in Austin, Texas, on October 29, 1996. TRD-9615739 Ann K. Utley Chair, Texas MHMR Board Texas Department of Mental Health and Mental Retardation Filed: October 29, 1996 Texas Natural Resource Conservation Commission Notice of Opportunity to Comment on Settlement Agreements of Administrative Enforcement Actions Notice of Opportunity to Comment on the following Orders was provided in the October 25, 1996, issue of the Texas Register (21 TexReg 10629). However, the notice is being republished and opportunity to comment is being extended until December 5, 1996. The Texas Natural Resource Conservation Commission (TNRCC) Staff is providing an opportunity for written public comment on the listed Agreed Orders (AOs) pursuant to the Health and Safety Code, the Texas Clean Air Act (the Act), Chapter 382, sec.382.096. The Act, sec.382.096 requires that the TNRCC may not approve these AOs unless the public has been provided an opportunity to submit written comments. Section 382.096 requires that notice of the proposed orders and of the opportunity to comment must be published in the Texas Register no later than the 30th day before the date on which the public comment period closes, which in this case is December 5, 1996. Section 382.096 also requires that the TNRCC promptly consider any written comments received and that the TNRCC may withhold approval of an AO if a comment indicates the proposed AO is inappropriate, improper, inadequate, or inconsistent with the requirements of the Texas Clean Air Act. Additional notice is not required if changes to an AO are made in response to written comments. A copy of each of the proposed AOs is available for public inspection at both the TNRCC's Central Office, located at 12100 Park 35 Circle, Building A, 3rd Floor, Austin, Texas 78753, (512) 239-3400 and at the applicable Regional Office as follows. Written comments about these AOs should be sent to the Staff Attorney designated for each AO at the TNRCC's Central Office at P.O. Box 13087 Austin, Texas 78711-3087 and must be received by 5:00 p.m. on December 5, 1996. Written comments may also be sent by facsimile machine to the Staff Attorney at (512) 239-3434. The TNRCC Staff Attorneys are available to discuss the AOs and/or the comment procedure at the listed phone numbers; however, sec.382.096 provides that comments on the AOs should be submitted to the TNRCC in writing (1)COMPANY: Engineered Carbons, Inc.; DOCKET NUMBER: 96-1678-AIR-E; ACCOUNT NUMBER: OC-0020-R; LOCATION: Echo Road, Orange, Orange County, Texas; TYPE OF FACILITY: carbon black plant; RULE VIOLATED: 30 TAC sec.101.4 and the Act, sec.382.085(a) and (b) by emitting one or more air contaminants, or combinations thereof, in such concentration and of such duration as were or tended to be injurious to or to adversely affect human health or welfare, animal life, vegetation, or property, or as to interfere with the normal use and enjoyment of animal life, vegetation, or property; PENALTY: $42,000; STAFF ATTORNEY: Lisa Dyar, (512) 239-5692; REGIONAL OFFICE: 3870 Eastex Freeway, Suite 110, Beaumont, Texas 77703-1830, (409) 898-3838. (2)COMPANY: Great Lakes Carbon Corporation; DOCKET NUMBER: 96-1679-AIR-E; ACCOUNT NUMBER.: JE-0040-F; LOCATION: Port Arthur, Jefferson County, Texas; TYPE OF FACILITY: calcined coke production plant; RULE VIOLATED: 30 TAC sec.sec.101.4; 111.111(a)(1)(A) and (B); 116.115(a); 101.6; 101.7(a); 116.116; 116.116(a); the Act, sec.382.085 (a) and (b) by emitting nuisance-level concentrations of particulate coke dust; exceeding the opacity limit for kiln #3 and kiln #5; exceeding the Maximum Allowable Emission Rates for sulfur dioxide emissions from Waste Heat Boiler S5; failing to include compound-specific types and quantities of emissions released during upset and maintenance events in the notifications; failing to cover sections of calcined coke conveyors C37 and L44 as represented in the permit application; failing to satisfy all conditions of a standard exemption; PENALTY: $80,000; STAFF ATTORNEY: Patricia Capps Welton, (512) 239-0682; REGIONAL OFFICE: 3870 Eastex Freeway, Suite 110, Beaumont, Texas 77703-1830; (409) 898-3838. (3)COMPANY: Jeff's Auto Sales; DOCKET NUMBER: 96-1668-AIR-E; ACCOUNT NUMBER: CP- 0241-G; LOCATION: 701 North McDonald, McKinney, Collin County, Texas; TYPE OF FACILITY: used car dealership; RULE VIOLATED: 30 TAC sec.114.1(c)(1) and (2) and the Act, sec.382.085(b) by offering for sale four pre-owned vehicles that were not equipped with either the control system or device that was originally part of the vehicle or motor vehicle engine or an alternate control system or device as designated in 30 TAC sec.114.1(b), or whose control system or device, required by 30 TAC sec.114.1(c)(1), was not in good operable condition; PENALTY: $2,250; STAFF ATTORNEY: Barbara Lazard, (512) 239-0674; REGIONAL OFFICE: 6421 Camp Bowie Boulevard, Suite 312, Fort Worth, Texas 76116, (817) 732-5531. (4)COMPANY: Texas By-Products; DOCKET NUMBER.: 96-0232-AIR-E; ACCOUNT NUMBER.: CP-0061-K; LOCATION: Wylie, Collin County, Texas; TYPE OF FACILITY: rendering plant; RULE VIOLATED: alleged to have violated 30 TAC sec.116.115, Texas Air Control Board (TACB) Agreed Board Order (ABO) Number 94-02(t), and the Act, sec.382.085(b) by failing to place trucks loaded with raw material into the rendering process building as required by Special Condition Number 6 of TACB, now TNRCC, Special Exemption Number X-9219, on September 21, 1994; and 30 TAC sec.101.4, and the Act, sec.382.085(a) and (b) by discharging one or more air contaminants or combinations thereof, in such concentration and of such duration as were or tended to be injurious to or to adversely affect human health or welfare, animal life, vegetation, or property or as to interfere with the normal use or enjoyment of animal life, vegetation, or property on September 21, 1994, and August 10, 1995; PENALTY: $24,000; STAFF ATTORNEY: Thomas Corwin, (512) 239- 5915; REGIONAL OFFICE: 6421 Camp Bowie Boulevard, Suite 312, Fort Worth, Texas 76116; (817) 732-5531. Issued in Austin, Texas on October 30, 1996. TRD-9615758 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Commission Filed: October 30, 1996 Public Utility Commission of Texas Notice of Filing of Requests for Arbitration to Establish Interconnection Agreements Notice is given to the public of the filing with the Public Utility Commission of Texas of three applications requesting compulsory arbitration to establish interconnection agreements pursuant to sec.242(b) of the Federal Telecommunications Act of 1996. Docket Titles and Numbers: Petition of Sprint Communications Company, L.P., for Arbitration of Interconnection Rates, Terms, Conditions, and Prices with Southwestern Bell Telephone Company, Pursuant to the Federal Telecommunications Act of 1996, Docket Number 16455; Petition of Sprint Communications Company, L.P., for Arbitration to Establish Interconnection Agreement Between GTE Southwest, Inc., and Contel of Texas, Inc., Pursuant to the Federal Telecommunications Act of 1996, Docket Number 16476; and Petition of American Communications Services, Inc., for Arbitration of nresolved Interconnection Issues with GTE Southwest, Inc. and Contel of Texas, Pursuant to the Federal Telecommunications Act of 1996, Docket Number 16473. The Applications: These dockets shall be consolidated for purposes of hearing. An Arbitration Hearing will be held beginning on Tuesday, December 3, 1996, at 9:00 a.m. at the Commission's offices, 1701 North Congress Avenue, Austin, Texas. Interested persons may provide a statement of position and/or provide a list of questions to be addressed in this consolidated proceeding. These statements may address the recent Federal Communication Commission's (FCC's) First Report and Order, In the Matter of Implementation of the Local Competition Provisions in the Telecommunications Act of 1996, CC Docket Number 96-98, FCC 96-325 (rel. August 8, 1996) (First Report and Order ). Statements and/or lists of questions (32 copies) should be submitted to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326 not later than November 20, 1996; these should specifically refer to consolidated Docket Numbers 16455, 16476, and 16473. Issued in Austin, Texas, on October 30, 1996. TRD-9615776 Paula Mueller Secretary of the Commission Public Utility Commission of Texas Filed: October 30, 1996 Notices of Intent to File Pursuant to Substantive Rule sec.23.27 Notice is given to the public of the intent to file with the Public Utility Commission of Texas an application pursuant to Public Utility Commission Substantive Rule sec.23.27 for approval of new PLEXAR-Custom Service for Valero Transmission, L.P. in San Antonio, Texas. Tariff Title and Number. Application of Southwestern Bell Telephone Company for new PLEXAR-Custom Service for Valero Transmission, L.P. in San Antonio, Texas, Pursuant to Public Utility Commission Substantive Rule sec.23.27. Tariff Control Number 16551. The Application. Southwestern Bell Telephone Company is requesting approval for new PLEXAR-Custom service for Valero Transmission, L.P. in San Antonio, Texas. The geographic service market for this specific service is the San Antonio, Texas area. Persons who wish to comment upon the action sought should contact the Public Utility Commission of Texas, by mail at P.O. Box 13326, Austin, Texas, 78711- 3326, or call the Public Utility Commission Consumer Affairs Section at (512) 936-7120. Hearing and speech-impaired individuals with Texas telephones (TTY) may contact the Commission at (512) 936-7136. Issued in Austin, Texas, on October 28, 1996. TRD-9615627 Paula Mueller Secretary of the Commission Public Utility Commission of Texas Filed: October 28, 1996 Notice is given to the public of the intent to file with the Public Utility Commission of Texas an application pursuant to Public Utility Commission Susbstantive Rule sec.23.27 for approval of 150 station addition to existing PLEXAR-Custom Service for Mission CISD in Mission, Texas. Tariff Title and Number. Application of Southwestern Bell Telephone Company for 150 Station Addition to Existing PLEXAR-Custom Service for Mission CISD in Mission, Texas, Pursuant to Public Utility Commission of Texas Substantive Rule sec.23.27. Tariff Control Number 16558. The Application. Southwestern Bell Telephone Company is requesting approval for 150 station addition to the existing PLEXAR-Custom service for Mission CISD in MissionTexas. The geographic service market for this specific service is the Brownsville, Texas area. Persons who wish to comment upon the action sought should contact the Public Utility Commission of Texas, by mail at P.O. Box 13326, Austin, Texas, 78711- 3326, or call the Public Utility Commission Consumer Affairs Section at (512) 936-7120. Hearing and speech-impaired individuals with Texas telephones (TTY) may contact the Commission at (512) 936-7136. Issued in Austin, Texas, on October 28, 1996. TRD-9615628 Paula Mueller Secretary of the Commission Public Utility Commission of Texas Filed: October 28, 1996 Notice is given to the public of the intent to file with the Public Utility Commission of Texas an application on November 1, 1996, pursuant to Public Utility Commission Substantive Rule 23.27 for approval of a customer-specific contract to provide CentraNet« service to GTE Long Distance. Tariff Title and Number: Application of GTE Southwest Incorporated for Approval of Customer-Specific Contract to Provide Centranet« Service to GTE Long Distance, pursuant to Public Utility Commission Substantive Rule 23.27. Tariff Control Number 16568. The Application: GTE Southwest Incorporated seeks approval of a customer- specific contract to provide both analog and digital CentraNet« Service to GTE Long Distance in Irving, Texas. Persons who wish to comment upon the action sought should contact the Public Utility Commission of Texas, by mail at P.O. Box 13326, Austin, Texas, 78711- 3326, or call the Public Utility Commission Consumer Affairs Section at (512) 936-7120. Hearing and speech-impaired individuals with text telephones (TTY) may contact the Commission at (512) 936-7136. Issued in Austin, Texas, on October 30, 1996. TRD-9615775 Paula Mueller Secretary of the Commission Public Utility Commission of Texas Filed: October 30, 1996 Notice is given to the public of the intent to file with the Public Utility Commission of Texas an application pursuant to Public Utility Commission Substantive Rule 23.27 for approval of new PLEXAR-Custom Service for Lyondell Petrochemical Company in Houston, Texas. Tariff Title and Number. Application of Southwestern Bell Telephone Company for new PLEXAR-Custom Service for Lyondell Petrochemical Company in Houston, Texas, Pursuant to Public Utility Commission Substantive Rule 23.27. Tariff Control Number 16567. The Application. Southwestern Bell Telephone Company is requesting approval for new PLEXAR-Custom service for Lyondell Petrochemical Company in Houston Texas. The geographic service market for this specific service is the Houston, Texas area. Persons who wish to comment upon the action sought should contact the Public Utility Commission of Texas, by mail at P.O. Box 13326, Austin, Texas, 78711- 3326, or call the Public Utility Commission Consumer Affairs Section at (512) 936-7120. Hearing and speech-impaired individuals with Texas telephones (TTY) may contact the Commission at (512) 936-7136. Issued in Austin, Texas, on October 30, 1996. TRD-9615774 Paula Mueller Secretary of the Commission Public Utility Commission of Texas Filed: October 30, 1996 Notice is given to the public of the intent to file with the Public Utility Commission of Texas an application pursuant to Public Utility Commission Substantive Rule 23.27 for approval of new PLEXAR-Custom Service for Eanes Independent School District in Austin, Texas. Tariff Title and Number. Application of Southwestern Bell Telephone Company for new PLEXAR-Custom Service for Eanes Independent School District in Austin, Texas, Pursuant to Public Utility Commission Substantive Rule 23.27. Tariff Control Number 16566. The Application. Southwestern Bell Telephone Company is requesting approval for new PLEXAR-Custom service for Eanes Independent School District in Austin, Texas. The geographic service market for this specific service is the Austin, Texas area. Persons who wish to comment upon the action sought should contact the Public Utility Commission of Texas, by mail at P.O. Box 13326, Austin, Texas, 78711- 3326, or call the Public Utility Commission Consumer Affairs Section at (512) 936-7120. Hearing and speech-impaired individuals with Texas telephones (TTY) may contact the Commission at (512) 936-7136. Issued in Austin, Texas, on October 30, 1996. TRD-9615778 Paula Mueller Secretary of the Commission Public Utility Commission of Texas Filed: October 30, 1996 Texas Rehabilitation Commission Intent to Award Grant-The Arc of Texas On behalf of the Texas Planning Council for Developmental Disabilities as its designated state agency, the Texas Rehabilitation Commission intends to award a grant to The Arc of Texas for a project that will result in establishment of a Special Needs Master Pooled Trust as authorized under the Omnibus Budget Reconciliation Act of 1993 (OBRA '93). The Special Needs Master Pooled Trust will allow families to provide for the future special needs of family members with disabilities without impacting the person's eligibility for public benefits. The Arc of Texas has assumed responsibility for research and development of a Special Needs Master Pooled Trust and is committed to the management of a Trust. Description of Project. The Arc of Texas will establish a special needs master pooled trust as authorized under OBRA '93 to serve anyone who meets the definition of a person with a disability under the Social Security Act. The Arc of Texas will function as the Manager Organization providing management and leadership for the Special Needs Master Pooled Trust. The Arc of Texas will have a memorandum of agreement with a Trustee Organization which will agree to hold, administer and distribute the income and principal of the Trust. The Arc of Texas will maintain an Advisory Committee made up of stakeholders, business and financial experts, consumers and consumer family members. The Arc of Texas will establish and formally initiate operations of the Special Needs Master Pooled Trust. The Arc of Texas will initiate a state-wide information campaign to educate people with disabilities, family members, stakeholder organizations and judges regarding the benefits and impact of the Special Needs Master Pooled Trust. The Arc of Texas will enroll and manage trust sub-accounts for families and their beneficiaries to meet their special needs while ensuring continued eligibility for public assistance. The Arc of Texas will plan and implement a future funding plan to ensure perpetual operation of the trust. The Arc of Texas will provide annual evaluation of program effectiveness. Terms and Funding: The project will be funded for up to five years. The initial budget period is December 1, 1996, through May 31, 1997, with funding not to exceed $45,000. Continuation funding will be contingent upon annual review of performance and availability of funds. Funding for years two through five is not to exceed $90,000 annually and significant reductions in funding for operational costs are expected throughout the authorization period. A minimum nonfederal direct cost match of 25% is required for the first year with increasing match for years two through five. Grant funds may not be used for Trustee organization fees or costs. The Trust Organization must follow requirements as stated in OBRA 93, 42 U.S.C. e1396p(d)4()(C). For information on any aspect of this announcement, contact: Lester Sanders, Grants Management Director, Texas Planning Council for Developmental Disabilities, 4900 North Lamar Blvd., Austin, Texas 78751-2399, (512) 424-4084. Issued in Austin, Texas on October 29, 1996 TRD-9615740 Charles W. Schiesser Assistant Commissioner for Legal Services Division Texas Rehabilitation Commission Filed: October 29, 1996 Texas Youth Commission Request for Proposal: To Provide Parole Supervision and Services to TYC Youth The Texas Youth Commission (TYC) is issuing a request for written proposals for parole supervision and services to TYC youth ages 10-21 across the state of Texas. Description: The focus of the TYC RFP #97-22 is to provide parole supervision and services to TYC youth. The program must serve males and females between the ages of 10 and 21 determined by TYC staff to be appropriate for parole supervision and services. Youth will be assigned to the program by TYC and TYC will provide a complete Common Application with attachments. The following is a profile of the youth that may be served by this request for proposals: 94% males and 6% females, average age 16.8 (range 10-21), history of chronic or serious criminal offending and 81% ethnic minorities. Eligible applicants include corporations, private non-profit agencies, private for profit agencies or individuals. The Texas Youth Commission encourages historically underutilized businesses as defined in Article V, sec.106 of the current Appropriations Act (Acts 1992, 72nd Legislature, 1st called Session, Chapter 19, page 1242) to respond to this request for proposal. Proposals must be received no later than 5:00 p.m. Central Standard Time December 2, 1996. Evaluation and Selection. Proposals will be evaluated and selection based on the program description of services, applicant's qualifications and past experience, reasonableness and competitiveness of cost and resources demonstrating ability of applicant to commence immediate services. A point system will be used to evaluate proposals. Contracts may be awarded to more than one applicant. Contact Person: Request for Proposal packets and information may be obtained from Paula Morelock, Director of Contract and Support Programs. The Texas Youth Commission. Post Office Box 4260, Austin, Texas 78765, (512) 424-6093. Closing Date: The closing date for receipt of proposals is December 2, 1996, at 5:00 p.m. Central Standard Time. Issued in Austin, Texas, on October 28, 1996. TRD-9615652 Steve Robinson Executive Director Texas Youth Commission Filed: October 28, 1996