ADOPTED RULES
An agency may take final action on a section 30 days after a proposal has been 
published in the Texas Register. The section becomes effective 20 days after the 
agency files the correct document with the Texas Register, unless a later date 
is specified or unless a federal statute or regulation requires implementation 
of the action on shorter notice. If an agency adopts the section without any 
changes to the proposed text, only the preamble of the notice and statement of 
legal authority will be published. If an agency adopts the section with changes 
to the proposed text, the proposal will be republished with the changes.

TITLE 16. ECONOMIC REGULATION
PART VIII. Texas Racing Commission
CHAPTER 303.General Provisions
SUBCHAPTER D.Texas Bred Incentive Programs
Programs for Horses
16 TAC sec.303.92
The Texas Racing Commission adopts an amendment to sec.303.92, concerning the 
rules for the Texas Bred Incentive Program for thoroughbred horses with changes 
to the proposed text published in the January 31, 1997, issue of the Texas 
Register (22 TexReg 1034). The amendment is adopted to ensure a clearly defined 
mechanism and set of standards to govern the exercise of duties conferred on the 
petitioner is established. 
The amendment was presented to the Commission as a petition for rulemaking under 
16 Texas Administrative Code, sec.307.303. According to the petition, the 
amendment will give detailed guidance for the functioning of the Texas Bred 
Incentive Program for thoroughbred horses and for the standards and procedures 
for determining eligibility and conferring awards. The amendment will change 
existing practice primarily by adding the features of subsection (b) relating to 
record keeping, governance of the program, and procedures for payment of awards. 
On adoption, the Commission deleted subsection (c)(2)(G) in the proposed text. 
The Commission believes that text which relates to the Commission's procedures 
for collecting Texas-bred incentive program funds from the racetracks is 
unnecessary. Because of the deletion of a subparagraph, the letter designations 
of the subparagraphs that followed were changed accordingly. In addition, the 
Commission modified subsection (c)(2)(F) to give the breed registry the option 
to retroactively distribute excess incentive program money for owners after the 
end of a race meeting. 
No comments were received regarding adoption of the proposal. 
The amendment is adopted under the Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act; and sec.6.08, which 
authorizes the commission to adopt rules relating to the accounting, audit, and 
distribution of all amounts set aside for the Texas-bred program.

sec.303.92.Thoroughbred rules.
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context indicates otherwise. 
(1) Horse Owner - A person who is owner of record of an accredited Texas-bred 
horse at the time of a race. 
(2) Breeder - The owner of the dam at the time of foaling as stated on the 
foal's Jockey Club certificate of registration. 
(3) Stallion Owner - A person who is the owner of record, at the time of 
conception, of the stallion that sired the accredited Texas-bred horse. 
(4) Accredited Texas-bred Thoroughbred - A horse registered with the Jockey 
Club, accredited with the breed registry and conceived and foaled in Texas, 
sired by a stallion accredited with the breed registry at the time of conception 
of said foal and out of a mare accredited with the breed registry that is 
permanently domiciled in Texas. Also, any horse foaled in Texas will be eligible 
to be accredited if the mare remains in Texas to be next bred to any stallion 
accredited with the breed registry and the mare becomes an accredited mare 
permanently domiciled in Texas. 
(5) Accredited Texas-bred Thoroughbred Mare - A mare registered with the Jockey 
Club, accredited with the breed registry, and permanently domiciled in Texas 
except for racing and breeding privileges. Annual reproductive activity of the 
mare may be required to be reported to the breed registry in writing via 
photocopy of the Live Foal Report/No Foal Report submitted annually to the 
Jockey club. 
(6) Accredited Texas Thoroughbred Stallion - A stallion registered with the 
Jockey Club, accredited with the breed registry, and standing the entire 
breeding season in Texas. He shall be permanently domiciled in Texas from 
January 1 to July 31 except for medical or racing privileges, but shall not 
service a mare in North America outside the State of Texas within that breeding 
season. The breed registry must be notified in writing within ten calendar days 
each time the stallion leaves or enters the State of Texas. A photocopy of the 
annual Report of Mares Bred may be required to be submitted to the breed 
registry office on or before the date required by the Jockey Club (August 1). 
Stallion owners are eligible to receive stallion awards only from offspring 
sired in Texas after the stallion has become accredited with the breed registry 
and paid the applicable administrative fees. 
(7) Breed Registry - The Texas Thoroughbred Association, the official breed 
registry for thoroughbred horses as designated in the Act. 
(8) Act - The Texas Racing Act. 
(9) Commission - The Texas Racing Commission. 
(b) Organizational Structure. The breed registry shall comply with the 
provisions of the Act and commission rules and shall further maintain 
substantially the following: 
(1) Records of the breed registry shall be kept so as to identify separately the 
activities of the accredited Texas-bred program. 
(2) Management of the accredited Texas-bred program shall be under the control 
of the board of directors of the breed registry and may be exercised through a 
committee or other governing body appointed by and accountable to the board of 
directors. The committee shall keep records or minutes of its proceedings and 
shall establish its operational procedures. The committee's records must be 
available for inspection at any time by the commission at the office of the 
breed registry. The committee is authorized to reasonably interpret the 
definitions and standards of this section, subject to approval by the board of 
directors, whose decision in such matters shall be final. 
(3) The committee shall prepare and implement a budget on an annual basis, 
subject to prior approval of the board of directors. The budget may contain 
provisions for reserves for contingencies deemed appropriate. The breed registry 
may develop and implement a fair system for sharing and allocation of expenses 
and operational costs between breed registry activities and accredited Texas-
bred program activities, taking into consideration the promotion and improvement 
of thoroughbred horses in Texas. In no event may funds that are dedicated by law 
to fund the incentive awards program be used for any other purpose. Any funds or 
services advanced or provided by the breed registry to the accredited Texas-bred 
program may be offset or otherwise recouped upon proper accounting. The 
committee is authorized to set and collect application and administration fees. 
(4) Eligibility for awards under the accredited Texas-bred program may not be 
conditioned upon membership in an organization. 
(c) Procedure for Payment of Awards. 
(1) Conditions precedent for payment of awards are: 
(A) If a horse is leased, there must be on file with the breed registry a lease 
agreement specifying which party shall receive award money.
(B) Breeder's Awards will be paid only on an accredited Texas-bred Thoroughbred 
whose dam was accredited with the breed registry prior to foaling the subject 
horse. 
(C) Accreditation fees are non-refundable after a work order has been assigned 
to an eligible entry. If a horse is ineligible, the fee will be refunded to the 
applicant. 
(D) Any Texas-bred horse that becomes breeding stock must be accredited with the 
breed registry as an accredited mare or stallion.
(E) All applicable fees set by the breed registry must have been paid. 
(2) Any accredited Texas-bred Thoroughbred that finishes first, second, or third 
in any race in Texas (with the exception of a stakes race restricted to 
accredited Texas-breds) shall receive an owner's award. Commencing with all 
Thoroughbred race meets run on and after January 8, 1997, all owner's awards 
shall be noted as a purse supplement in each association's condition book and 
race program, and owner's awards shall be considered as a portion of the purse 
money earned by the accredited Texas-bred Thoroughbred. For the purpose of 
calculations of the amount of owner's award purse supplement available the 
following procedure shall be utilized: 
(A) Owner's Award purse supplements shall be calculated on a track-by-track 
basis, with analysis and opportunity for adjustment with each condition book. 
(B) Based on historical data such as 
(i) the relationship of the owner's award money available in relation to the 
purse money earned by accredited Texas-bred Thoroughbreds finishing first, 
second, or third, and 
(ii) income projections for owner's award revenue calculated by the breed 
registry with the advice and consent of the Executive Secretary of the 
commission, the amount of the owner's award (as a percentage of the purse) shall 
be determined in advance for publication in each track's condition book and 
stakes book. For open company races, the owner's awards shall be advertised in 
each condition book, stakes book, and program so as to identify the availability 
of the accredited Texas-bred program awards. 
(C) Accredited Texas-bred owner's award supplements shall only be paid to owners 
of accredited Texas-breds finishing first, second, or third in any race (except 
a stakes race restricted to accredited Texas-breds). No owner's award purse 
supplements shall be paid on fourth and fifth place finishes. 
(D) It is the intent of the breed registry that (as close of an actual sum as 
possible to) (40%) of the total money generated for all categories of awards 
through the accredited Texas-bred Thoroughbred program will be distributed as 
owner's award purse supplements. The balance of the award money will be 
distributed by the breed registry with two-thirds of the balance (after payment 
of owner's awards) distributed to breeder's awards and one-third of the balance 
(after payment of owner's awards) distributed to stallion owner's awards. 
(E) If the percentage set by the breed registry causes an amount greater or less 
than 40% of the cumulative owner's, breeder's, and stallion owner's awards from 
all sources of award revenue to be paid out in owner's awards during a condition 
book period, the breed registry (with the advice and consent of the Executive 
Secretary of the commission) shall have the ability to adjust the owner's award 
purse supplement (as a percentage of the purse) in future condition books during 
each particular race meeting. A periodic reconciliation shall be effected. 
(F) After payment of owner's awards for the final condition book of a race 
meeting, any remaining award money allocated for owner's awards during that race 
meet (if any) may be carried over to the next live race meet at that track or 
redistributed retroactively, at the discretion of the breed registry. Funds 
allocated to the breeder's and stallion awards shall be distributed by the breed 
registry, with two-thirds of the balance to breeder's awards and one-third of 
the balance to stallion owner's awards. 
(G) On the first business day after a week of live racing is concluded at a 
Texas track (i.e., Monday for a race week ending on a Friday, Saturday, or 
Sunday), the racetrack shall supply by electronic means (fax, e-mail, etc.) to 
the breed registry a complete listing of accredited Texas-bred Thoroughbreds 
that finished first, second, or third in any race at the track during the 
previous live racing week. The listing shall include the name of the horse, name 
of horse's owner, date of race, race number, finish position of horse (1st, 2nd, 
or 3rd), amount of purse money from the horsemen's purse account earned by the 
horse, and amount of accredited Texas-bred owner's award earned by the horse. 
The breed registry shall then on the same business day as it receives this 
report, transfer via electronic means to the horsemen's bookkeeper at the track 
a sum of money necessary to cover all accredited Texas-bred owner's awards 
during the previous live racing week. 
(H) The breed registry shall retain the ability to set a maximum dollar amount 
for an owner's award. This procedure may be utilized in certain stakes races 
and/or high purse value allowance races. The intent of this maximum owner's 
award policy is to not provide an inordinate amount of the total money available 
for owner's awards to an individual horse during a condition book period. In the 
event the maximum owner's award policy is utilized for a race, the dollar amount 
of the maximum owner's award shall be indicated in the track's condition book, 
stakes book, and stakes nomination forms whenever possible. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on March 11, 1997.
TRD-9703323
Paula C. Flowerday
General Counsel
Texas Racing Commission
Effective date: April 1, 1997
Proposal publication date: January 31, 1997
For further information, please call: 

CHAPTER 311.Conduct and Duties of Individuals
SUBCHAPTER C.Alcohol and Drug Testing
16 TAC sec.311.208
The Texas Racing Commission adopts an amendment to sec.311.208, concerning the 
penalties that may be imposed against an occupational licensee who tests 
positive for drugs while performing his or her duties on the grounds of a 
licensed racetrack without changes to the proposed text published in the January 
31, 1997, issue of the Texas Register (22 TexReg 1037). The amendment is adopted 
to ensure pari-mutuel racing will be safer and the participants in racing will 
be encouraged to complete appropriate and necessary rehabilitation programs. 
The amendment permits the stewards or judges to condition the reinstatement of a 
license after a suspension for a drug positive on the completion of any 
rehabilitation program ordered by the medical review officer. 
No comments were received regarding adoption of the new section. 
The amendment is adopted under the Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act; and sec.14.03, which 
authorizes the commission to adopt rules relating to drug testing for 
occupational licensees.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority. 
Issued in Austin, Texas, on March 11, 1997.
TRD-9703324
Paula C. Flowerday
General Counsel
Texas Racing Commission
Effective date: April 1, 1997
Proposal publication date: January 31, 1997
For further information, please call: 

CHAPTER 319.Veterinary Practices and Drug Testing
SUBCHAPTER A.General Provisions
16 TAC sec.319.7
The Texas Racing Commission adopts an amendment to sec.319.7, concerning 
medication labeling requirements without changes to the proposed text published 
in the January 31, 1997, issue of the Texas Register (22 TexReg 1037). The 
amendment is adopted to ensure the commission's enforcement programs relating to 
drugging of race animals will be effective. 
The amendment clarifies the requirements relating to labeling of medications 
possessed on the grounds of pari-mutuel racetracks. 
No comments were received regarding adoption of the new section. 
The amendment is adopted under the Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act; and sec.14.03, which 
authorizes the commission to adopt rules relating to illegal influencing of the 
outcome of a race. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority. 
Issued in Austin, Texas, on March 11, 1997.
TRD-9703327
Paula C. Flowerday
General Counsel
Texas Racing Commission
Effective date: April 1, 1997
Proposal publication date: January 31, 1997
For further information, please call: 

TITLE 28. INSURANCE
PART I. Texas Department of Insurance
CHAPTER 5.Property and Casualty Insurance
SUBCHAPTER E.Texas Catastrophe Property Insurance Association 
Plan of Operation
28 TAC sec.5.4001
The Commissioner of Insurance adopts amendments to sec.5.4001, the plan of 
operation of the Texas Catastrophe Property Insurance Association (TCPIA). The 
Commissioner considered the amendments in a public hearing held on March 5, 
1997, under Docket Number 2282, at 10:00 a.m., in Room 100 of the Texas 
Department of Insurance Building, 333 Guadalupe Street in Austin Texas, and 
adopts the amendments with no changes to the proposed text as published in the 
February 7, 1997, issue of the Texas Register (22 TexReg 1384). 
The Legislature created the TCPIA in 1971, by enacting the Catastrophe Property 
Insurance Pool Act (Article 21.49 of the Insurance Code). The TCPIA is composed 
of all property insurers authorized to transact property insurance in Texas. Its 
purpose is to provide windstorm and hail insurance coverage to residents in 
designated catastrophe areas who are unable to obtain such coverage in the 
voluntary market. Since its inception, the TCPIA has provided this coverage to 
residents of 14 coastal counties, including Aransas, Brazoria, Calhoun, Cameron, 
Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San 
Patricio and Willacy. Pursuant to Commissioner's Order Number 95-1200 (November 
14, 1995), effective March 1, 1996, the TCPIA provides coverage to residents in 
two additional coastal areas-the area located east of a boundary line of State 
Highway 146 and inside the city limits of the City of Seabrook (Harris County) 
and the area located east of the boundary line of State Highway 146 and inside 
the city limits of the City of La Porte (Harris County). Pursuant to 
Commissioner's Order Number 96-0380 (April 5, 1996), effective June 1, 1996, the 
TCPIA also provides coverage in the City of Morgan's Point (Harris County). 
On December 18, 1996, the Commissioner designated two additional catastrophe 
areas, through entry of Commissioner's Order Number 96-1468. The areas are: (1) 
the area located east of a boundary line of State Highway 146 and inside the 
city limits of the City of Shoreacres (Harris County); and (2) the area located 
east of a boundary line of State Highway 146 and inside the city limits of the 
City of Pasadena (Harris County) (collectively, "Shoreacres/Pasadena Catastrophe 
Areas"). Commissioner's Order Number 96-1468 became effective on March 1, 1997, 
at which time TCPIA coverage became available in the Shoreacres/Pasadena 
Catastrophe Areas. 
The amendments are necessary to revise subsection (e) (relating to Building 
Codes) of 28 TAC sec.5.4001 (the TCPIA Plan of Operation) to include the 
Shoreacres/Pasadena Catastrophe Areas as designated areas that are subject to 
TCPIA building code specifications and standards and to the Department's 
Windstorm Inspection Program. 
Subsection (e)(3) is amended to add a new subparagraph (D) providing that the 
Shoreacres/Pasadena Catastrophe Areas are subject to the building code 
requirements set forth in subsection (e) of the plan of operation. Subsection 
(e)(4) is amended to add a new subparagraph (F), relating to structures in 
Shoreacres/Pasadena Catastrophe Areas constructed, repaired, or to which 
additions were made on and after January 1, 1988 and before March 1, 1997. 
Subsection (F) provides that such structures shall be considered approved by the 
Commissioner of Insurance as being in compliance with the TCPIA's inland 
building code requirements contained in paragraph 2 of subsection (e) (Standard 
Building Code, 1973 Edition) or an equivalent recognized Code and, therefore, 
shall be considered insurable property by the TCPIA, if the owner of the 
structure presents to the TCPIA at the time of application a written statement 
verifying such compliance by a city building official. The text of the required 
compliance statement is included within subparagraph (F). A new subparagraph (G) 
is added to subsection (e)(4) to provide that a structure constructed, repaired, 
or to which additions were made on and after March 1, 1997, that is located in 
the Shoreacres/Pasadena Catastrophe Areas shall be considered an insurable 
property for windstorm and hail insurance from the TCPIA only if the structure 
is inspected or approved by the Commissioner of Insurance for compliance with 
building specifications as provided in the plan of operation, including any 
specifications for roofing materials, as provided in Article 21.49, sec.6A(a) of 
the Insurance Code. 
The amendments will become effective on April 1, 1997. 
The Department received no comments regarding the amendments to 28 TAC 
sec.5.4001, as proposed in the February 7, 1997, issue of the Texas Register. 
The amendment to 28 TAC sec.5.4001 are adopted pursuant to the Insurance Code, 
Articles 21.49 and 1.03A. Article 21.49, sec.3(h) authorizes the Commissioner to 
designate a city or a part of a city, or a county or a part of a county, as a 
catastrophe area to be served by the TCPIA upon determination, after notice of 
not less than ten days and hearing, that windstorm and hail insurance is not 
reasonably available to a substantial number of owners of insurable property 
within that city or a part of that city or county or a part of that county that 
is subject to unusually frequent and severe damage resulting from windstorms 
and/or hailstorms. Pursuant to sec.3(h), the Commissioner designated the 
Shoreacres/Pasadena Catastrophe Areas as catastrophe areas through 
Commissioner's Order Number 96-1468 (December 18, 1996). Article 21.49, sec.6A 
specifies building code requirements and approval or inspection procedures for 
windstorm and hail insurance through the TCPIA. Article 21.49, sec.5(c) of the 
Insurance Code provides that the Commissioner of Insurance by rule shall adopt 
the TCPIA plan of operation with the advice of the TCPIA board of directors. 
Section 5(f) of Article 21.49 provides that any interested person may petition 
the Commissioner to modify the plan of operation in accordance with the 
Administrative Procedure Act (Government Code title 10, subtitle A, ch. 2001). 
Article 21.49, sec.5, subsections (c) and (f), by their terms, delegate the 
foregoing authority to the State Board of Insurance. However, under Article 1.02 
of the Insurance Code, a reference in the Insurance Code or another insurance 
law to the State Board of Insurance means the Commissioner of Insurance or the 
Texas Department of Insurance, as consistent with the respective powers and 
duties of the Commissioner and the Department under Article 1.02. Article 1.03A 
authorizes the Commissioner of Insurance to adopt rules and regulations, which 
must be for general and uniform application, for the conduct and execution of 
the duties and functions of the Texas Department of Insurance only as authorized 
by a statute. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority. 
Issued in Austin, Texas, on March 11, 1997.
TRD-9703383
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: April 1, 1997
Proposal publication date: February 7, 1997
For further information, please call: (512) 463-6327

Manual
28 TAC sec.5.4501
The Commissioner of Insurance adopts an amendment to sec.5.4501, concerning the 
adoption by reference of a revised manual of rules governing the writing of 
windstorm and hail insurance by the Texas Catastrophe Property Insurance 
Association (TCPIA). The Commissioner considered the amendment in a public 
hearing held on March 5, 1997, under Docket Number 2283, at 10:00 a.m., in Room 
100 of the Texas Department of Insurance Building, 333 Guadalupe Street in 
Austin Texas, and adopts the amendment with no changes to the proposed text as 
published in February 7, 1997 issue of the Texas Register (22 TexReg 1387). 
The Legislature created the TCPIA in 1971, by enacting the Catastrophe Property 
Insurance Pool Act (Article 21.49 of the Insurance Code). The TCPIA is composed 
of all property insurers authorized to transact property insurance in Texas. Its 
purpose is to provide windstorm and hail insurance coverage to residents in 
designated catastrophe areas who are unable to obtain such coverage in the 
voluntary market. Since its inception, the TCPIA has provided this coverage to 
residents of 14 coastal counties, including Aransas, Brazoria, Calhoun, Cameron, 
Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San 
Patricio and Willacy. Pursuant to Commissioner's Order Number 95-1200 (November 
14, 1995), effective March 1, 1996, the TCPIA provides coverage to residents in 
two additional coastal areas-the area located east of a boundary line of State 
Highway 146 and inside the city limits of the City of Seabrook (Harris County) 
and the area located east of the boundary line of State Highway 146 and inside 
the city limits of the City of La Porte (Harris County). Pursuant to 
Commissioner's Order Number 96-0380 (April 5, 1996), effective June 1, 1996, the 
TCPIA also provides coverage in the City of Morgan's Point (Harris County). 
On December 18, 1996, the Commissioner designated two additional catastrophe 
areas, through entry of Commissioner's Order Number 96-1468. The areas are: (1) 
the area located east of a boundary line of State Highway 146 and inside the 
city limits of the City of Shoreacres (Harris County); and (2) the area located 
east of a boundary line of State Highway 146 and inside the city limits of the 
City of Pasadena (Harris County) (collectively, "Shoreacres/Pasadena Catastrophe 
Areas"). Commissioner's Order Number 96-1468 became effective on March 1, 1997, 
at which time TCPIA coverage became available in the Shoreacres/Pasadena 
Catastrophe Areas. 
The revised manual is necessary to incorporate rule amendments to provide for 
the applicability of the TCPIA's building code and inspection requirements to 
the Shoreacres/Pasadena Catastrophe Areas. 
The adopted amendment to 28 TAC 5.4501 incorporates and adopts by reference a 
revised TCPIA Manual, effective April 1, 1997. The amendments to the Manual 
include the following: 
Rule C, relating to Determination of Territory (Catastrophe Areas), in Section 
I-General Rules, has been amended to add new subdivisions, 2.c and 2.d. The new 
subdivisions will list, respectively, the area located east of a boundary line 
of State Highway 146 and inside the city limits of the City of Shoreacres 
(Harris County) and the area located east of a boundary line of State Highway 
146 and inside the city limits of the City of Pasadena (Harris County) as 
designated catastrophe areas. 
A new subdivision 4.c has been added to Rule D, relating to Insurable Property, 
in Section I-General Rules, to provide that structures constructed, repaired or 
to which additions were made on and after January 1, 1988 and before March 1, 
1997 and that are located in the Shoreacres/Pasadena Catastrophe Areas are 
approved as complying with the TCPIA inland building code (1973 Edition, 
Standard Building Code) if the City of Shoreacres or the City of Pasadena has 
issued to the owner of the property a statement signed by a city building 
official that the structure was constructed or repaired, or an addition was made 
to the structure, in accordance with the building specifications and standards 
which comply with the Standard Building Code (1973 Edition) or an equivalent 
recognized code; and the City of Shoreacres or the City of Pasadena inspected 
the structure and enforced compliance to said code. Under subdivision 4.c, this 
signed statement must be provided to the TCPIA upon application to the TCPIA for 
windstorm and hail insurance and shall be considered evidence of the 
insurability of the structure by the TCPIA. 
A new subdivision 5.c has been added to Rule D, relating to Insurable Property, 
in Section I-General Rules, to provide that a structure constructed, repaired, 
or to which additions were made on and after March 1, 1997, that is located in 
either of the Shoreacres/Pasadena Catastrophe Areas and that has been certified 
by the Texas Department of Insurance as being in compliance with the building 
specifications of the plan of operation shall be considered insurable property 
by the TCPIA. A certificate of compliance (Form WPI-8) issued by the Texas 
Department of Insurance shall be considered evidence of insurability of the 
structure by the TCPIA. 
The Department received no comments regarding the adopted amendment to 28 TAC 
sec.5.4501. 
The amendment to 28 TAC sec.5.4501 is adopted pursuant to the Insurance Code, 
Articles 21.49 and 1.03A. Article 21.49, sec.3(h) authorizes the Commissioner to 
designate a city or a part of a city or a county or a part of a county as a 
catastrophe area to be served by the TCPIA upon determination, after notice of 
not less than ten days and hearing, that windstorm and hail insurance is not 
reasonably available to a substantial number of owners of insurable property 
within that city or a part of that city or county or a part of that county that 
is subject to unusually frequent and severe damage resulting from windstorms 
and/or hailstorms. Pursuant to sec.3(h), the Commissioner designated the 
Shoreacres/Pasadena Catastrophe Areas as catastrophe areas through 
Commissioner's Order Number 96-1468 (December 18, 1996). Article 21.49, sec.6A 
specifies building code requirements and approval or inspection procedures for 
windstorm and hail insurance through the TCPIA. Article 21.49, sec.5A authorizes 
the Commissioner, after notice and hearing, to issue any orders which the 
Commissioner considers necessary to carry out the purposes of Article 21.49, 
including, but not limited to, maximum rates, competitive rates and policy 
forms. Article 21.49, sec.8 authorizes the Commissioner to approve every manual 
of classifications, rules, rates, rating plans, and every modification of any of 
the foregoing for use by the TCPIA. Articles 21.49, sec.sec.5A, 6A, and 8 by 
their terms delegate the foregoing authority to the State Board of Insurance; 
however, under Article 1.02 of the Insurance Code, a reference in the Insurance 
Code or another insurance law to the State Board of Insurance means the 
Commissioner of Insurance or the Texas Department of Insurance, as consistent 
with the respective powers and duties of the Commissioner and the Department 
under Article 1.02. Article 1.03A authorizes the Commissioner of Insurance to 
adopt rules and regulations, which must be for general and uniform application, 
for the conduct and execution of the duties and functions of the Texas 
Department of Insurance only as authorized by a statute. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority. 
Issued in Austin, Texas, on March 11, 1997.
TRD-9703382
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: April 1, 1997
Proposal publication date: February 7, 1997
For further information, please call: (512) 463-6327

TITLE 37. PUBLIC SAFETY AND CORRECTIONS
PART I. Texas Department of Public Safety
CHAPTER 15.Drivers License Rules
Reciprocity in Driver Licensing
37 TAC sec.15.91
The Texas Department of Public Safety adopts an amendment to sec.15.91, 
concerning Reciprocity In Driver Licensing, without changes to the proposed text 
as published in the January 24, 1997, issue of the Texas Register (22 TexReg 
939) 
The justification for this section will be to allow family members of Consuls to 
obtain a Texas driver's license. 
The amendment adds language to subsection (e) stating that family members of 
Consuls may obtain a Texas driver's license. 
No comments were received regarding adoption of the amendment. 
The amendment is adopted pursuant to 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.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority. 
Issued in Austin, Texas, on February 26, 1997.
TRD-9703336
Dudley M. Thomas
Director
Texas Department of Public Safety
Effective date: March 31, 1997
Proposal publication date: January 24, 1997
For further information, please call: (512) 424-2890