PROPOSED RULES
Before an agency may permanently adopt a new or amended section or repeal an 
existing section, a proposal detailing the action must be published in the Texas 
Register at least 30 days before action is taken. The 30-day time period gives 
interested persons an opportunity to review and make oral or written comments on 
the section. Also, in the case of substantive action, a public hearing must be 
granted if requested by at least 25 persons, a governmental subdivision or 
agency, or an association having at least 25 members.
Symbology in proposed amendments. New language added to an existing section is 
indicated by the <nl> code. [Brackets] indicate deletion of existing material 
within a section.

TITLE 1. ADMINISTRATION
PART XV. Texas Health and Human Services Commission
CHAPTER 355.Medicaid Reimbursement Rates
SUBCHAPTER C.Reimbursement Methodology for Nursing Facilities 
1 TAC sec.sec.355.307, 355.401
The Health and Human Services Commission (HHSC) proposes amendments to 
sec.355.307, concerning reimbursement methodology for nursing facilities; and 
sec.355.401, concerning allowable and unallowable costs, in its Medicaid 
Reimbursement Rates chapter. The purpose of the amendments is to allow nursing 
facilities to receive supplemental Medicaid reimbursement for children who 
qualify for the Texas Index for Level of Effort (TILE) heavy-care case mix 
classification and require daily care of a tracheostomy. Qualifying residents 
will be eligible to receive 60% of the total ventilator-dependent supplemental 
reimbursement. Children with tracheostomies who also are ventilator-dependent 
will not be eligible to receive both a ventilator-dependent and a tracheostomy 
supplemental reimbursement. 
Gary Bego, Associate Commissioner for Fiscal Policy, has determined that for the 
first five-year period the proposed section will be in effect there will be 
fiscal implications for state government as a result of enforcing or 
administering the sections. The effect on state government for the first five-
year period the section will be in effect is an estimated additional cost of 
$150,482 in fiscal year (FY) 1998; $230,596 in FY 1999; $240,481 in FY 2000; 
$249,431 in FY 2001; and $259,404 in FY 2002. 
Mr. Bego, also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be that providers of these specialized services for children 
will receive Medicaid payments more closely aligned with the costs of delivering 
these services. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed sections.
Questions about the content of this proposal may be directed to Pamela Lawrie at 
(512) 438-4051 in the Texas Department of Human Services' Rate Analysis 
Department. Written comments on the proposal may be submitted to Stephen 
Svadlenak, Health and Human Services Commission, P.O. Box 13247, Austin, Texas 
78711, within 30 days of publication in the Texas Register The amendments are 
proposed under the Texas Government Code, Chapter 531, sec.531.033, which 
authorizes the Commissioner of Health and Human Services to adopt rules 
necessary to carry out the Health and Human Services Commission's duties under 
Chapter 531; and under Texas Government Code, sec.531.021, which provides the 
commission with the authority to administer federal medical assistance funds.
The amendments implement Government Code, sec.531.021 and Human Resources Code 
sec.sec.32.001-32.042. 

sec.355.307. Reimbursement Setting Methodology 
(a) (No change.) 
(b) Reimbursement determination. For reimbursements calculated using cost 
reports pertaining to providers' fiscal years ending in calendar year 1995 or 
1996, the Texas Board of Human Services (board) determines general 
reimbursements for medical assistance programs for Medicaid recipients under 
provisions of the Human Resources Code, Chapter 24 (concerning Reimbursement 
Methodology). For reimbursements calculated using cost reports pertaining to 
providers' fiscal years ending in 1997 and subsequent years, the board 
determines general reimbursements for medical assistance programs for Medicaid 
recipients under provisions of Subchapter A of this chapter (relating to Cost 
Determination Process). The board determines reimbursements for nursing 
facilities based on consideration of Texas Department of Human Services (DHS) 
staff recommendations. To develop reimbursement rate recommendations for nursing 
facilities, DHS staff apply the following procedures. 
(1)-(2) (No change.) 
(3) Per diem rate methodology. Staff determine per diem rate recommendations for 
each of the 11 TILE groups and for the default group according to the following 
procedures: 
(A)-(F) (No change.) 
<nl>(G)<ol> <nl>Supplemental reimbursement for children with tracheostomies 
requiring daily care. As of January 1, 1998, qualifying residents may receive a 
supplement to the per diem rate specified in subparagraph (E) of this paragraph. 
<ol>
<nl>(i)<ol> <nl>To qualify for supplemental reimbursement, a resident must be 
less than 22 years of age; require daily cleansing, dressing, and suctioning of 
a tracheostomy; and be unable to do self care. The daily care of the 
tracheostomy must be prescribed by a licensed physician. <ol>
<nl>(ii)<ol> <nl> The supplemental reimbursement for children receiving daily 
tracheostomy care is 60% of the per diem ventilator rate supplement (specified 
in subparagraph (F)(ii) of this paragraph). <ol> 
<nl>(H)<ol> <nl>Children with qualifying conditions as specified in 
subparagraphs (F) and (G) of this paragraph may receive only one of the 
supplemental reimbursements. Therefore, children with tracheostomies who also 
are ventilator-dependent are not eligible to receive both supplemental 
reimbursements. <ol>

sec.355.401 Allowable and Unallowable Costs: 1997 and Subsequent Cost Reports 
(a)-(b) (No change.) 
(c) In addition to the requirements of sec.355.102 and sec.355.103 of this title 
(relating to General Principles of Allowable and Unallowable Costs, and 
Specifications for Allowable and Unallowable Costs), the following apply to 
costs for the NF program. 
(1)-(2) (No change.) 
(3) Voucherable costs. Except as detailed in subparagraphs
(A) and (B) of this paragraph, any expenses directly reimbursable to the 
provider through a voucher payment and any expenses in excess of the limit, or 
ceiling, for a voucher payment system are unallowable costs. 
(A) The ventilator dependent supplemental voucher system <nl> and the children 
with tracheostomies supplemental voucher system are<ol> [is] not subject to the 
cost reporting restrictions described in this paragraph. 
(B) (No change.) 
(4)-(6) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801448
Marina Henderson
Executive Deputy Commissioner
Texas Health and Human Services Commission
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 424-6576

TITLE 7. BANKING AND SECURITIES
PART VI. Credit Union Department
CHAPTER 91.Chartering, Operations, Mergers, Liquidations 
General Rules
7 TAC sec.91.103
The Texas Credit Union Commission proposes new sec.91.103, concerning public 
notice of the department's activities. The proposed rule is necessary to comply 
with new statutory requirements enacted in the 75th Legislative Session. Senate 
Bill 358, effective September 1, 1997, 75th Legislature, Chapter 338, 1997 Texas 
Session Law (to be codified at Texas Finance Code Annotated, sec.15.4021), 
requires the commission to adopt rules relating to providing the public with 
notice of department activities. The proposed new rule requires the department 
to publish in the Texas Register and the department newsletter actions taken on 
certain applications and requests submitted for approval that have become final.
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implication as a result of enforcing or 
administering the proposed rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five-year period the rule is in effect: 
(a) The public benefits anticipated, as a result of the notice being given, will 
be to ensure the public is informed of actions taken by the Department.
(b) There is no economic cost anticipated to the parties who are required to 
comply with the rule. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed. 
Written comments on the proposed rule must be submitted within 30 days after 
publication of the proposed section in the Texas Register to Carol P. Shaner, 
Staff Services Officer, Credit Union Department, 914 East Anderson Lane, Austin, 
Texas, 78752-1699.
The new section is proposed under the provisions of the Texas Finance Code, 
sec.15.402, which authorizes the commission to adopt reasonable rules, and 
Section 10 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session 
Law (to be codified at Texas Finance Code Annotated Section 15.4021), which 
requires the Commission to provide public notice of Department activities. 
The specific section affected by this proposed rule is sec.11.061 of the Texas 
Credit Union Act (to be codified at Texas Finance Code Annotated, sec.15.4021). 

sec.91.103.Public Notice of Department Activities.
The commissioner shall cause notice of final actions taken by the department on 
certain activities to be published in the Texas Register and the department 
newsletter. Notice shall be published in both publications within 30 days of the 
action becoming final. The activities covered by this requirement are: 
(1) an application for incorporation under the Texas Finance Code, sec.122.001; 
(2) a request for an amendment to a credit union's articles of incorporation 
under the Texas Finance Code, sec.122.011; 
(3) a request for an amendment to a credit union's bylaws for the expansion of 
its field of membership under the Texas Finance Code, sec.122.011; 
(4) an application for merger or consolidation under the Texas Finance Code, 
sec.122.152; 
(5) a request by a foreign credit union to do business in Texas under the Texas 
Finance Code, sec.122.013; and 
(6) an application for conversion of a credit union's Charter under the Texas 
Finance Code, sec.sec.122.201, 122.202 or 122.203.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801286
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

7 TAC sec.91.104
The Texas Credit Union Commission proposes new sec.91.104, concerning public 
notice of certain requests for approval by the commissioner. The proposed rule 
is necessary to comply with new statutory requirements enacted in the 75th 
Legislative Session. Section 17 of Senate Bill 358, effective September 1, 1997, 
75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas 
Finance Code Annotated, sec.122.005), requires the commissioner to submit to the 
secretary of state for publication in the Texas Register notice of requests for 
approval by the commissioner of applications for incorporation, amendments to 
credit union's articles of incorporation, including amendments to expand field 
of membership, and mergers/consolidations. The proposed new section requires the 
department to publish in the Texas Register and the department newsletter notice 
of such requests received by the Department at least thirty days prior to any 
action being taken on them.
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implication as a result of enforcing or 
administering the proposed rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five-year period the rule is in effect: 
(a) The public benefits anticipated, as a result of the notice being given, will 
be to ensure the public is informed of applications and requests for approval 
received by the Department. 
(b) There is no economic cost anticipated to the parties who are required to 
comply with the rule. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed. 
Written comments on the proposed rule must be submitted within 30 days after 
publication of the proposed section in the Texas Register to Carol P. Shaner, 
Staff Services Officer, Credit Union Department, 914 East Anderson Lane, Austin, 
Texas, 78752-1699. 
The new section is proposed under the provisions of Texas Finance Code, 
sec.15.402, which authorizes the commission to adopt reasonable rules, and 
Section 17 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session 
Law (to be codified at Texas Finance Code Annotated, sec.122.005), which 
requires the Commission to provide public notice of Department activities. The 
specific section affected by this proposed rule is Texas Finance Code, 
sec.122.005. 

sec.91.104.Notice of Applications.
(a) Upon receipt of a complete application for authorization to be granted by 
the department, the commissioner shall cause notice of such application to be 
published in the Texas Register and the department newsletter. Notice shall be 
published in both publications at least 30 days prior to taking action on the 
request. The activities covered by this requirement are:
(1) an application for incorporation under the Texas Finance Code, sec.122.001; 
(2) a request for an amendment to a credit union's articles of incorporation 
under the Texas Finance Code, sec.122.011; 
(3) a request for an amendment to a credit union's bylaws for an expansion of 
its field of membership under the Texas Finance Code, sec.122.011; and 
(4) an application for merger or consolidation under the Texas Finance Code, 
sec.122.152. 
(b) The commissioner may waive or delay notice of applications under subsection 
(a) of this section when a waiver or delay is in the public interest. The 
commissioner shall consider the welfare and stability of the affected credit 
union(s) in determining the public interest. If the commissioner determines that 
delaying public notice is in the public interest, the notice of application 
shall be published in each publication at the earliest feasible time. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801287
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

Loans
7 TAC sec.91.701
The Texas Credit Union Commission proposes an amendment to sec.91.701, 
concerning loans and extensions of credit that a credit union may make. The 
amendments are being proposed to provide specific authorization for a credit 
union to engage in home equity lending and reverse mortgage lending, as allowed 
by Section 50, Article XVI, Texas Constitution. The amendments are necessary to 
further clarify the Commission's determination that state chartered credit 
unions have the authority to offer home equity loans and reverse mortgages to 
their members. An amendment is also proposed to ensure compliance with 
provisions of Section 50, Article XVI, Texas Constitution, pertaining to home 
improvement loans. Next, an amendment is proposed to establish a minimum dollar 
threshold under which title insurance is not required on a real estate loan 
secured by a first lien. The proposed $25,000 threshold would be the same as the 
threshold now required for a real estate loan secured by other than a first 
lien. Currently, a title policy is required on all real estate loans secured by 
a first lien. Lastly, an amendment is proposed to raise the appraisal 
requirement threshold from $50,000 to $100,000, the level established for 
federal credit unions, so that state-chartered credit unions are not 
disadvantaged. 
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implications as a result of enforcing or 
administering the proposed amended rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five years the amended rule proposed is in effect: 
(a) The public benefits anticipated as a result of enforcing the rule as 
proposed will be that state-chartered credit unions will be better able to meet 
the credit needs of all of its members. 
(b) There is no economic cost anticipated to the parties who are required to 
comply with the rule. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed. 
Written comments on the proposed amendments must be submitted within 30 days 
after their publication in the Texas Register to Carol P. Shaner, Staff Services 
Officer, Credit Union Department, 914 East Anderson Lane, Austin, Texas 78752-
1699.
The amendment is proposed under the provision of the Texas Finance Code, 
sec.124.001, which provides the Credit Union Commission with the authority to 
adopt rules governing loans made to credit union members; and under the Texas 
Finance Code, sec.15.402, which authorizes the commission to adopt reasonable 
rules. 
The specific section affected by the proposed amendments is Texas Finance Code, 
sec.124.001. 

sec.91.701.Loans.
(a)-(b) (No change.) 
(c) Loans secured by real estate. For loans secured, in whole or in part, by a 
lien on real estate, the requirements described in this subsection shall apply 
unless waived in writing by the commissioner: 
(1) Loans secured by a first lien on real estate. A loan, or any refinancing 
thereof, secured by a first lien on real estate shall be subject to the 
requirements described in this paragraph as applicable. 
(A)-(B) (No change.)
(C) Title opinion; Title insurance. A loan may not be made by the credit union 
unless it is furnished with either a written title opinion of an attorney or a 
satisfactory policy of title insurance in the principal amount of the loan, 
which policy shall be issued by a title company authorized to insure titles in 
this state, insuring that the lien is a first and prior lien. <nl>The validity 
of title for loans of less than $25,000 may be determined as prescribed by board 
policy.<ol> 
(D)-(F) (No change.)
(G) Valuation. Every loan must have included in its documentation evidence of 
the market value of the real estate determined in accordance with written board 
policy or, if the amount of the loan exceeds <nl>$100,000<ol>[$50,000], a report 
of an appraisal prepared by a state certified appraiser.
(2) Other real estate loans; Maximum maturity; Loan to value ratio. A loan, or 
any refinancing thereof, secured by a lien on real estate other than a first 
lien: 
(A)-(E) (No change.)
(F) Valuation. Every loan must have included in its documentation evidence of 
the market value of the real estate determined in accordance with written board 
policy or, if the amount of the loan exceeds <nl>$100,000<ol>[$50,000], a report 
of an appraisal prepared by a state certified appraiser.
<nl>(3)<ol> <nl>Home improvement loans. Loans in which the proceeds are used to 
construct new improvements or renovate existing improvements on a homestead 
property must also comply with the requirements of Section 50(a)(5), Article 
XVI, Texas Constitution.<ol> 
<nl>(4)<ol> <nl>Loans originated under Section 50(a)(6), Article XVI, Texas 
Constitution. For a loan secured by an encumbrance against the equity in a 
homestead property, the terms and conditions set forth in Section 50, Article 
XVI, Texas Constitution, will take precedence over any specific requirement 
contained in this section if there is an irreconcilable conflict between a 
constitutional provision and the provision of this section.<ol>
<nl>(5)<ol> <nl> Reverse mortgages. A credit union may offer reverse mortgages 
to its members under the terms and conditions set forth in Section 50, Article 
XVI, Texas Constitution. In the event of an irreconcilable conflict between any 
specific requirement contained in this section and a constitutional provision, 
the constitutional requirement shall prevail. <ol>
(d)-(f) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801288
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

Changes in Corporate Status 
7 TAC sec.91.1003
The Texas Credit Union Commission proposes new sec.91.1003, concerning 
mergers/consolidations of credit unions. The new rule is being proposed in order 
to comply with Section 3 of Senate Bill 358 (75th Legislature) which requires 
the commission, by rule, to establish appropriate criteria that the commissioner 
must consider in determining whether to approve or disapprove a 
merger/consolidation request. The proposed rule would formalize documentation 
requirements and merger procedures currently utilized by the Credit Union 
Department, as well as identify grounds for the commissioner's disapproval of a 
merger/consolidation request. 
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implications as a result of enforcing or 
administering the proposed rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five years the rule proposed is in effect: 
(a) The public benefits anticipated as a result of enforcing the rule as 
proposed will be that state-chartered credit unions will have a clearly defined 
set of procedures to follow when contemplating a merger/consolidation, which 
will ultimately benefit their members. 
(b) There is no additional economic cost anticipated to the parties who are 
required to comply with the rule. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed. 
Comments on the proposal must be submitted within 30 days after its publication 
in the Texas Register to Carol P. Shaner, Staff Services Officer, Credit Union 
Department, 914 East Anderson Lane, Austin, Texas 78752-1699. 
The new section is proposed under the provisions of the Texas Finance Code, 
sec.15.402, which authorizes the commission to adopt reasonable rules, and 
Section 3 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session 
Law (codified at Texas Finance Code Annotated, sec.122.153). The specific 
sections affected by this proposed rule are sec.sec.122.151, 122.152, 122.153 
122.154, and 122.155 of the Texas Finance Code pertaining to merger or 
consolidation. 

sec.91.1003.Mergers/Consolidations.
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Surviving credit union - The credit union that will continue in operation 
after the merger/consolidation. 
(2) Merging credit union - The credit union that will cease to exist as an 
operating credit union at the time of the merger/consolidation.
(b) Two or more credit unions authorized to conduct business in this state may 
merge/consolidate, in whole or in part, with each other subject to commission 
rules. 
(c) A credit union authorized to conduct business under the laws of this state 
may merge/consolidate with a credit union authorized to conduct business under 
the laws of another state or U. S. territory, to the extent permitted by the 
laws of the state or territory in question and subject to commission rules. A 
credit union authorized to conduct business under the laws of this state may 
also merge/consolidate with a credit union authorized to conduct business under 
the laws of the United States to the extent permitted by the laws of the United 
States and subject to commission rules. Each such application/plan shall comply 
with the applicable requirements of this section, and shall include a certified 
copy of an order from the appropriate supervisory authority approving the 
merger/consolidation, or other evidence satisfactory to the commissioner that 
all regulatory requirements of the out of state or federal supervisory authority 
have been satisfied. 
(d) Approval to Merge/Consolidate. The following are required for the completion 
of a merger/consolidation of credit unions: 
(1) approval of the merger/consolidation plan by resolution of the board of 
directors of each credit union; 
(2) approval of the merger/consolidation plan by vote of the members of each 
credit union as set forth in Section 122.151 of the Act, unless waived by the 
commissioner; and 
(3) approval by the commissioner of the merger/consolidation plan, the 
certificate of merger/consolidation, and the requisite amendment to the 
surviving credit union's articles of incorporation or bylaws. 
(e) Notice of Intent to Merge/Consolidate. The credit unions shall notify the 
commissioner of their intent to merge/consolidate by filing a copy of the 
resolution adopted by each credit union's board of directors that evidences 
their intent to merge/consolidate. 
(f) Plan for Merger/Consolidation. Upon the commissioner's acknowledgment of 
receipt of the notice of intent to merge/consolidate, a plan for the proposed 
merger/consolidation shall be prepared. The plan shall include: 
(1) the current financial reports of each credit union; 
(2) the combined financial reports of the two credit unions; 
(3) an explanation of any proposed adjustments to the members shares, deposits, 
reserves, or undivided profits; 
(4) a summary of the products and services proposed to be available to the 
members of the surviving credit union, with an explanation of any changes from 
the current products and services provided to the members;
(5) a summary of the advantages and disadvantages of the merger/ consolidation; 
(6) the projected location of the main office and any branch location(s) after 
the merger/consolidation; and 
(7) any other items deemed critical to the merger/consolidation agreement by the 
boards of directors. 
(g) Submission of an Application to Merge/Consolidate to Department.
(1) An application for approval of the merger/consolidation will be complete 
when the following information is submitted to the commissioner:
(A) the merger/consolidation plan, as described in this rule;
(B) a copy of the resolution of each board of directors approving the 
merger/consolidation plan; 
(C) the proposed Notice of Special Meeting of the members and a copy of the 
ballot form to be used, unless approval by the members is waived by the 
commissioner; 
(D) the current delinquent loan summaries for each credit union; 
(E) evidence that relevant supervisory authorities and the share insurer are in 
agreement with the merger/consolidation proposal; and
(F) a request for a waiver of the requirement that the plan be approved by the 
members of any of the affected credit unions, in the event the board(s) seek 
such a waiver, together with a statement of the reason(s) for the waiver(s). 
(2) If the surviving credit union is organized under the laws of another state 
or of the United States, the commissioner may accept an application to merge or 
consolidate that is prescribed by the state or federal supervisory authority of 
the surviving credit union, provided that the commissioner may require 
additional information to determine whether to deny or approve the 
merger/consolidation. The application will be deemed complete upon receipt of 
all information requested by the commissioner. 
(h) Upon receipt of a completed application, notice of the proposed merger/ 
consolidation will be published in the Texas Register and Department Newsletter. 
(i) Commissioner Action on the Application. 
(1) The commissioner shall approve the application for merger/consolidation upon 
the finding from information submitted in the application that the proposed 
merger/consolidation will promote the welfare and stability of the merging and 
surviving credit unions. 
(2) The commissioner shall deny an application for merger/consolidation if the 
commissioner finds any of the following: 
(A) the financial condition of the surviving credit union before the 
merger/consolidation is such that it will likely jeopardize the financial 
stability of the merging credit union or prejudice the financial interests of 
the members, beneficiaries or creditors of either credit union;
(B) the plan includes a change in the products or services available to members 
of the merging credit union that substantially harms the financial interests of 
the members, beneficiaries or creditors of the merging credit union; 
(C) the merger/consolidation would probably substantially lessen the ability of 
the surviving credit union to meet the reasonable needs and convenience of 
members to be served; 
(D) the credit unions do not furnish to the commissioner all information 
requested by the commissioner which is material to the application;
(E) the credit unions fail to obtain any approval required from a federal or 
state supervisory authority; or 
(F) the merger/consolidation would be contrary to law. 
(3) For applications to merge/consolidate in which the products and services of 
the surviving credit union after merger/consolidation are proposed to be 
substantially the same as those of the merging and surviving credit unions, the 
commissioner will presume that the merger/consolidation will not significantly 
change or affect the availability and adequacy of financial services in the 
local community. 
(j) Procedures for Approval of Merger/Consolidation Plan by the Members of Each 
Credit Union. 
(1) The credit unions have the option of allowing their members to vote on the 
plan in person at a meeting of the members, by mail ballot, or by a combination 
of both. 
(2) Members shall be given advance notice of the meeting in accordance with the 
credit union's bylaws. The notice of the meeting shall:
(A) specify the purpose of the meeting;
(B) state the reasons for the proposed merger/consolidation;
(C) state that the merger/consolidation plan will be presented to the members; 
(D) provide the name and location of the surviving credit union; 
(E) specify whether the vote will be taken in person at the meeting, by mail 
ballot to be received by the credit union no later than the date and time of the 
meeting, or by combination of both methods; and 
(F) be accompanied by a mail ballot and a copy of the merger/consolidation plan 
if voting by mail is permitted. 
(k) Completion of Merger/Consolidation. 
(1) Upon approval of the merger/consolidation plan by the membership, if 
applicable, the Certificate of Merger/Consolidation shall be completed, signed 
and submitted to the commissioner for final authority to combine the records. 
Necessary amendments to the surviving credit union's articles of incorporation 
or bylaws shall also be submitted at this time.
(2) Upon receipt of the commissioner's written authorization, the records of the 
credit unions shall be combined as of the effective date of the 
merger/consolidation. The board of the directors of the surviving credit union 
shall certify the completion of the merger/consolidation to the commissioner 
within 30 days after the effective date of the merger/consolidation.
(3) Upon receipt by the commissioner of the certification of the 
merger/consolidation in which the surviving credit union will operate under a 
Texas charter, any article of incorporation or bylaw amendments will be approved 
at the same time the charter of the merging credit union is canceled.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801290
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

Submission of Comments by Interested Parties
7 TAC sec.91.3001, sec.91.3002
The Texas Credit Union Commission proposes new sec.91.3001 and sec.91.3002, 
concerning the opportunity for interested parties to be heard on certain 
applications. The new rules are being proposed in accordance with Section 17 of 
Senate Bill 358 (75th Legislature) which provides that the commission may 
establish reasonable rules governing the circumstances and conduct of informal 
meetings. The proposed rules would formalize requirements and procedures to be 
utilized by the Credit Union Department. 
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implications as a result of enforcing or 
administering the proposed rules. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five years the rules proposed are in effect: 
(a) The public benefits anticipated as a result of enforcing the rules as 
proposed will be that interested parties unions will have a clearly defined set 
of procedures to follow when requesting an informal meeting with the 
commissioner.
(b) There is no economic cost anticipated to the parties who are required to 
comply with the rules. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rules as proposed. 
Comments on the proposed rules must be submitted within 30 days after their 
publication in the Texas Register to Carol P. Shaner, Staff Services Officer, 
Credit Union Department, 914 East Anderson Lane, Austin, Texas 78752-1699.
The new sections are proposed under the provisions of the Texas Finance Code, 
sec.15.402, which authorizes the commission to adopt reasonable rules, and 
Section 17 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session 
Law (to be codified at Texas Finance Code Annotated, sec.122.005), which 
provides the Credit Union Commission with the authority to establish, by rule, 
appropriate criteria governing the circumstances and conduct of informal 
meetings. 
The specific sections affected by these proposed rules are Texas Finance Code, 
sec.sec.122.006, 122.011,122.151, and 122.152, pertaining to applications for 
incorporation, request for approval of article of incorporation amendments, and 
merger or consolidation. 

sec.91.3001.Opportunity to Submit Comments on Certain Applications.
(a) An interested party may submit comments to the commissioner on the following 
matters: 
(1) an application for incorporation under the Texas Finance Code, sec.122.001;
(2) an amendment to a credit union's articles of incorporation under the Texas 
Finance Code, sec.122.011, which includes an amendment to expand the credit 
union's field of membership; or 
(3) an application to merge or consolidate under the Texas Finance Code, 
sec.122.152. 
(b) An interested party is a person or entity that has an interest in particular 
to the application other than as a member of the general public. 
(c) Acceptance of comments under this section does not constitute a 
determination of standing to protest or otherwise participate in a contested 
case hearing on the application. 
(d) Comments may be made in writing or provided in a meeting with the 
commissioner or deputy commissioner, as follows: 
(1) written comments shall be submitted within 30 days after notice of the 
application is published in the Texas Register or the department's newsletter, 
whichever is later;
(2) a meeting to receive comments shall be held upon written request by an 
interested party or upon the commissioner's direction.

sec.91.3002.Conduct of Meetings to Receive Comments.
(a) Meetings to receive comments under sec.91.3001 of this title (relating to 
opportunities to submit comments on certain applications) will be conducted in 
the following manner: 
(1) a written request for a meeting to receive comments must be received by the 
department within 30 days after publication of the notice of the application and 
shall contain the following: 
(A) the identity of the requestor, including the name of a natural person who 
represents a business entity or other association, mailing address, daytime 
telephone number, and a facsimile number if any; 
(B) the name of the application and type of application; 
(C) a description of the requestor's interest in the application; and 
(D) a list of at least three dates and times within 30 days after the date of 
publication of notice of application, which are available for the meeting. 
(2) the meeting will be scheduled and may be rescheduled, if necessary, by the 
commissioner to occur after at least three business days' notice by telephone, 
facsimile, or mail; 
(3) one meeting may be scheduled to receive comments from more than one 
interested party, at the discretion of the commissioner;
(4) a limit on the length and other conditions for the conduct of the meeting 
may be imposed by the commissioner, and the conditions will be stated in the 
notice of the meeting; 
(5) the meeting may be conducted by telephone with the consent of the interested 
party; and 
(6) the department is not required to make a record of the meeting. 
(b) An interested party who fails to attend a meeting scheduled for the party's 
benefit may submit written comments within three days after the date scheduled 
for the meeting, but the commissioner is not required to schedule another 
meeting. 
(c) The purpose of the meeting is only to receive comments, and no decision, 
preliminary or otherwise, will be made at the meeting. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801291
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

CHAPTER 97.Commission Policies and Administrative Rules
Fees
7 TAC sec.97.113
The Texas Credit Union Commission proposes an amendment to existing rule 
sec.97.113, concerning operating fees. One proposed amendment will modify the 
amount of operating fees a state-chartered credit union must pay to the 
Department annually. This amendment to update the operating fee schedule is the 
result of the Department's analysis of its current operating costs, the 
operating assessment schedule imposed on federally chartered credit unions and 
credit unions chartered by other states, and the structure of the state credit 
union industry as it exists today. The operating fee schedule currently in 
effect was adopted in September of 1991. 
The commission is also proposing an amendment to allow for the collection of 
$200 per foreign branch office operated in the state of Texas by an out of state 
credit union. As the rule now reads, an out of state credit union with branches 
operating in Texas is only required to remit $200 per year to the Department, 
regardless of the number of actual foreign branch operations in existence. 
Therefore, an out of state credit union with four branches would pay the same 
annual fee as another out of state credit union with only one branch. Amending 
the rule to allow for a fee to be collected for each branch office will result 
in a more equitable system. 
Lastly, the commission proposes the addition of a new subsection addressing the 
collection of operating fees from a state chartered credit union that assumes 
the assets and liabilities of another state chartered credit union through a 
merger or consolidation between June 30 and September 1. This will allow the 
department to collect operating fees normally lost as a result of the timing 
difference between the date upon which the fees are assessed and the remittance 
date. 
Lynette Pool-Harris, Deputy Commissioner, has determined that for each year of 
the first five year period there will not be fiscal implications as a result of 
enforcing or administering the proposed rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five years the rule proposed is in effect: 
(a) The public benefits anticipated as a result of enforcing the rule as 
proposed will be that the Department is sufficiently funded by the credit unions 
to cover expenses in regulating and supervising those credit unions.
(b) The anticipated economic cost to the individuals who are required to comply 
with the rule as proposed will be dependent on their asset base as of the 
quarter ending June 30. Credit unions with total assets below approximately $39 
million will pay lower operating fees, while those above $39 million will pay 
higher fees, than they would under the current operating fee schedule. Those 
credit unions experiencing asset growth between June 30 and September 1 due to 
mergers/consolidations will now be financially responsible for the associated 
operating fees. For out of state credit unions operating branches in Texas, the 
anticipated economic cost will be dependent on the number of such branches in 
operation as of September 1 of each year. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed.
Written comments on the proposed amendment must be submitted within 30 days 
after its publication in the Texas Register to Carol P. Shaner, Staff Services 
Officer, Credit Union Department, 914 East Anderson Lane, Austin, Texas 78752-
1699. 
The amendment is proposed under the provisions of the Texas Finance Code, 
sec.15.402, which provide the Credit Union Commission with the authority to set, 
by rule, reasonable supervision fees, charges, and revenues required to be paid 
by credit unions authorized to do business under the Texas Finance Code. 
The specific section affected by this proposed amendment is Texas Finance Code, 
sec.15.402. 

sec.97.113.Operating Fees.
(a) (No change.) 
(b) Calculation of operating fees. The schedule provided in this section shall 
serve as the basis for calculating operating fees. The base date shall be June 
30 of the year in which operating fees are calculated. The asset base may be 
reduced by the amount of reverse-repurchase balances extant on the June 30 base 
date. The commissioner is authorized to increase or decrease the fee schedule 
annually by amounts not to exceed 10% per year with prior approval of the 
commission, as needed to match revenue with appropriations.
Figure: 7 TAC sec.97.113(b)
(c)-(d) (No change.) 
(e) Out of state branches. Credit unions operating branch offices in Texas as 
authorized by sec.91.211 of this title (relating to Application for a 
Certificate of Authority To Do Business in the State of Texas) shall pay an 
annual operating fee of $200 <nl>per branch office.<ol>
(f) (No change.) 
<nl>(g)<ol> <nl> In the event a credit union in existence as of June 30 merges 
or consolidates with another credit union and the merger/consolidation is 
completed on or before September 1, the surviving credit union shall remit to 
the department the amount that the merging/consolidating credit union would have 
paid if it had still been in existence on September 1. <ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801294
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

TITLE 16. ECONOMIC REGULATION
PART I. Railroad Commission of Texas
CHAPTER 5. Transportation Division
SUBCHAPTER J. Rail Safety
16 TAC sec.5.802
The Railroad Commission of Texas proposes an amendment sec.5.802, concerning 
reports of railroad accidents/incidents. Currently, railroads are required to 
notify the commission immediately of any collision, derailment, fire, explosion, 
act of God, or other event occurring in the state of Texas that: results in the 
death of any railroad passenger or railroad employee; results in the death or 
injury of two or more persons; involves a passenger train; or involves a 
commodity classified as a hazardous material under 49 Code of Federal 
Regulations Part 172. The proposed amendment would require the railroads to 
notify the commission immediately upon the occurrence of any of the described 
events that results in the death of one or more persons.
Jerry Martin, director, Rail Division, has determined that for each year of the 
first five years the section as proposed will be in effect there will be no 
fiscal implications for state or local governments. 
Mr. Martin has also determined that for each year of the first five years the 
section as proposed will be in effect the public benefit anticipated as a result 
of enforcing the section as proposed will be the accumulation by the commission 
of more comprehensive and timely information about deaths and injuries resulting 
from accidents and incidents involving railroad on-track equipment, moving or 
standing, which in turn should help the commission in evaluating the safety of 
railroad operations. 
There is anticipated economic cost to small businesses and individuals required 
to comply with the section as proposed due to the requirement to report all 
accidents and incidents involving railroad on-track equipment which result in 
the death of any person, not just those involving the death of two or more 
persons. However, the cost of complying with the section as proposed cannot be 
determined, since the frequency of reports is related to deaths of persons, 
which cannot be predicted. In addition, each railroad's individual 
administrative costs are likely to differ, making the determination of the cost 
of compliance impossible. 
Comments on the proposed amendment should be filed with Jerry Martin, Director, 
Rail Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 
78711-2967. Comments will be accepted for 60 days after publication in the Texas 
Register. For more information, contact Mr. Martin at (512) 463-7001.
The commission proposes the amendment pursuant to Texas Civil Statutes, Article 
6448a, which authorizes the commission to issue rules as permitted by the 
Federal Railroad Safety Act of 1970. 
Texas Civil Statutes, Article 6448a, is the statute affected by the proposed 
amendment. 

sec.5.802. Reports of Railroad Accidents/Incidents.
(a) (No change.) 
(b) A railroad must report immediately by telephone to the Commission at (512) 
463-6788, whenever it learns of the occurrence of any collision, derailment, 
fire, explosion, act of God, or other event occurring in the State of Texas and 
involving operation of railroad on-track equipment (standing or moving) which: 
(1) results in the death of <nl>one or more persons<ol> [any railroad passenger 
or railroad employee]; 
(2) results in the [death or] injury of two or more persons; 
(3)-(4) (No change.) 
(c) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 29, 1998.
TRD-9801363
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-7008

TITLE 22. EXAMINING BOARDS
PART V. State Board of Dental Examiners
CHAPTER 101. Dental Licensure
22 TAC sec.101.2
The State Board of Dental Examiners proposes new sec.101.2, concerning staggered 
dental registrations. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. There will be no fiscal impact on state government 
because the proposed rule describes procedures already in place as authorized by 
the Dental Practice Act at Article 4550b. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that Board rules will clarify for dental licensees the procedure by 
which dental registrations are staggered and the fees due for the initial 
staggered registration period and subsequent annual renewals. 
There will be no effect on small and large businesses. The economic costs to 
persons who are required to comply with the rule as proposed will be contingent 
upon their placement in the staggered registration system. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The new rule is proposed under Texas Government Code sec.2001.021 et.seq; Texas 
Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board of 
Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4550b, which provides that the Board 
by rule may adopt a staggered registration system. 
The proposed new rule does not affect other statutes, articles, or codes.

sec.101.2. Staggered Dental Registrations.
The State Board of Dental Examiners, pursuant to Article 4550b, V.T.C.S., has 
established a staggered license registration system comprised of initial dental 
license registration periods followed by annual registrations (i.e., renewals). 
(1) The initial, staggered dental license registration periods will range from 6 
months to 17 months. Each dentist for whom an initial dental license 
registration is issued will be assigned a computer-generated check digit. The 
length of the initial license registration period will be according to the 
assigned check digit as follows: 
(A) a dentist assigned to check digit 1 will be registered for 6 months; 
(B) a dentist assigned to check digit 2 will be registered for 7 months; 
(C) a dentist assigned to check digit 3 will be registered for 8 months; 
(D) a dentist assigned to check digit 4 will be registered for 9 months; 
(E) a dentist assigned to check digit 5 will be registered for 11 months; 
(F) a dentist assigned to check digit 6 will be registered for 12 months; 
(G) a dentist assigned to check digit 7 will be registered for 13 months; 
(H) a dentist assigned to check digit 8 will be registered for 14 months; 
(I) a dentist assigned to check digit 9 will be registered for 15 months; and 
(J) a dentist assigned to check digit 10 will be registered for 17 months. 
(2) For individuals who qualify for dental licensure by examination, the initial 
dental license registration fees will be as follows:
(A) an annual license registration fee of $70 prorated according to the number 
of months in the initial registration period; 
(B) $9.00 for peer assistance.
(3) For individuals who qualify for dental licensure by credentials, the initial 
dental license registration fees will be as follows:
(A) an annual license registration fee of $70 prorated according to the number 
of months in the initial registration period; 
(B) $9.00 for peer assistance; 
(C) a $200 annual assessment by the Texas Legislature for deposit to the General 
Revenue Fund. 
(4) Subsequent to the initial registration period, a licensee's annual 
registration (renewal) will occur on the first day of the month that follows the 
last month of his/her initial dental license registration period. Pursuant to 
sec.102.1(a) of this title (relating to Fee Schedule), the licensee will pay the 
following fee for each annual registration (i.e., renewal): 
(A) a license registration fee of $70; 
(B) $200 annual assessment by the Texas Legislature for deposit to the General 
Revenue Fund; 
(C) $9.00 for peer assistance. 
(5) Approximately 60 days prior to the expiration date of the initial dental 
license registration period, a license renewal notice will be mailed to all 
dental licensees who have that expiration date.
(6) A license registration expired for more than one year may not be renewed. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801315
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

CHAPTER 102. Fees
22 TAC sec.102.1
The State Board of Dental Examiners proposes an amendment to sec.102.1, 
concerning fees. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications on state or local government as a result of enforcing or 
administering the rule. The fiscal impact on state government will be contingent 
upon the number of exception tracking numbers issued to registrants in each 
state-supported dental school. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that licenses, registrants, and dental schools will know the 
appropriate fees due to State Board of Dental Examiners. 
There will be no effect on small and large businesses. The anticipated economic 
costs to persons and/or dental schools required to comply with the rule as 
proposed will be contingent upon the costs associated with each application, 
registration, tracking number, et cetera. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act, and Article 4550a sec.1 and sec.2, Article 4550c, 
Article 4551e sec.5, Article 4551f sec.6, Article 4547, Article 4545a, and 
Article 4544 sec.1 and sec.2 and sec.467.0041, Title 6, Chapter 467 of the 
Health and Safety Code, Peer Assistance Programs. The proposed amended rule does 
not affect other statutes, articles, or codes. 

sec.102.1. <nl>Fee Schedule<ol> [Licensing and Examination Fees].
(a) <nl>Dentists.<ol> [Any person desiring to obtain a license to practice 
dentistry, dental hygiene and operate a dental laboratory in the State of Texas 
shall pay the following fees:] 
(1) <nl>Application for licensure by examination<ol> [ dental examination fee: 
$150]: 
<nl>(A)<ol> initial application/examination: $150; and 
<nl>(B)<ol> initial assessment by the Texas Legislature for deposit to the 
General Revenue Fund: $200; 
(2) <nl>Annual registration<ol> [dental hygiene examination fee:] $70. 
(3) <nl>Annual peer assistance: $9.00.<ol> [ dental laboratory application fee: 
$100] 
(4) <nl>Annual assessment by Texas Legislature for deposit to the General 
Revenue Fund: $200.<ol> [dental licensure by credentials application fee $2,000] 
(5) <nl>Application for licensure by credentials: $2,000. <ol> [dental hygiene 
licensure by credentials application fee: $475
<nl>(6)<ol> Duplicate license: $15.
<nl>(7)<ol> Duplicate renewal certificate: $15. 
<nl>(8)<ol> Reactivate a retired license: $250. 
(b) <nl>Dental Hygienists:<ol> [Any person licensed to practice dentistry, 
dental hygiene and operate a dental laboratory in the State of Texas shall pay 
the following annual renewal fees:] 
(1) <nl>application for licensure by examination:<ol> [ dentists:] $70; 
(2) <nl>annual registration:<ol> [dental hygienists:] $41; 
(3) <nl>annual peer assistance: $2.00;<ol> [ dental laboratory: $100] 
<nl>(4)<ol> application for licensure by credentials: $475; 
<nl>(5)<ol> duplicate license: $15;
<nl>(6)<ol> duplicate renewal certificate: $15; and
<nl>(7)<ol> reactivate a retired license: $250. 
(c) <nl>Dental laboratories: <ol>[The peer assistance fee for dentists shall be 
$9.00] 
<nl>(1)<ol> initial application: $100; and
<nl>(2)<ol> annual registration: $100.
(d) <nl>Application for faculty member exception tracking (identification) 
number: $75.<ol> [The peer assistance fee for dental hygienists shall be $2.00] 
(e) <nl>Application for dental intern or resident exception tracking 
(identification) number: $25.<ol> [A duplicate license fee shall be $15] 
[(f) A duplicate renewal certificate fee shall be $15.] 
[(g) The administrative fee to reactivate a retired license shall be $250.] 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801316
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

CHAPTER 103. Dental Hygiene Licensure
22 TAC sec.103.4
The State Board of Dental Examiners proposes new sec.103.4, concerning staggered 
dental hygiene registrations. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. There will be no fiscal impact on state government 
because the proposed rule describes procedures already in place as authorized by 
the Dental Practice Act at Article 4550b. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that Board rules will clarify for dental hygiene licensees the 
procedure by which dental hygiene registrations are staggered and the fees due 
for the initial staggered registration period and subsequent annual renewals. 
There will be no effect on small and large businesses. The economic costs to 
persons who are required to comply with the rule as proposed will be contingent 
upon their placement in the staggered registration system. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The new rule is proposed under Texas Government Code sec.2001.021 et.seq; Texas 
Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board of 
Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4550b, which provides that the Board 
by rule may adopt a staggered registration system. 
The proposed new rule does not affect other statutes, articles, or codes.

sec.103.4. Staggered Dental Hygiene Registrations. 
The State Board of Dental Examiners, pursuant to Article 4550b, V.T.C.S., has 
established a staggered license registration system comprised of initial dental 
hygiene license registration periods followed by annual registrations (i.e., 
renewals).
(1) The initial dental hygiene license registration periods will range from 6 
months to 17 months Each dental hygienist for whom an initial dental hygiene 
license registration is issued will be assigned a computer generated check 
digit. The length of the initial license registration period will be determined 
on the basis of the assigned check digit as follows: 
(A) a dental hygienist assigned to check digit 1 will be registered for 6 
months; 
(B) a dental hygienist assigned to check digit 2 will be registered for 7 
months; 
(C) a dental hygienist assigned to check digit 3 will be registered for 8 
months; 
(D) a dental hygienist assigned to check digit 4 will be registered for 9 
months; 
(E) a dental hygienist assigned to check digit 5 will be registered for 11 
months; 
(F) a dental hygienist assigned to check digit 6 will be registered for 12 
months; 
(G) a dental hygienist assigned to check digit 7 will be registered for 13 
months; 
(H) a dental hygienist assigned to check digit 8 will be registered for 14 
months; 
(I) a dental hygienist assigned to check digit 9 will be registered for 15 
months; and 
(J) a dental hygienist assigned to check digit 10 will be registered for 17 
months. 
(2) For individuals who qualify for dental hygiene licensure by examination, the 
initial dental hygiene license registration fees will be as follows: 
(A) an annual license registration fee of $41 prorated according to the number 
of months in the initial registration period; and 
(B) $2.00 for peer assistance. 
(3) For individuals who qualify for dental hygiene licensure by credentials, the 
initial dental hygiene license registration fees will be as follows: 
(A) an annual license registration fee of $41 prorated according to the number 
of months in the initial registration period; and 
(B) $2.00 for peer assistance. 
(4) Subsequent to the initial registration period, a licensee's annual 
registration (renewal) will occur on the first day of the month that follows the 
last month of his/her initial dental hygiene license registration period. 
Pursuant to sec.102.1(b) of this title (relating to Fee Schedule) the licensee 
will pay the following fee for each annual registration (i.e., renewal): 
(A) a license registration fee of $41; and 
(B) $2.00 for peer assistance. 
(5) Approximately 60 days prior to the expiration date of the initial dental 
hygiene license registration period, a license renewal notice will be mailed to 
all dental hygiene licensees who have that expiration date. 
(6) A license registration expired for more than one year may not be renewed. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801317
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

CHAPTER 104. Continuing Education
22 TAC sec.104.1
The State Board of Dental Examiners proposes an amendment to sec.104.1, 
concerning requirements for continuing education. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that individuals who cannot meet the continuing education 
requirements may have alternative methods available to them, credit for 
interactive computer courses can be given, and the term "scientific or 
technical" is better defined. 
There will be no effect on small and large businesses. There are no anticipated 
economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4544 sec.5 and Article 4551e. The 
amended sec.3 is proposed to allow individuals who are not able to obtain 
continuing education to request the Board to approve alternatives to meet 
continuing education requirements. Proposed sec.5 is amended to provide a 
definition of the term "scientific or technical." Proposed sec.9 is added to 
allow credit for up to twelve hours per three year period for interactive 
computer courses. 
The proposed amended rule does not affect other statutes, articles, or codes. 

sec.104.1. Requirement. 
As a prerequisite to the annual renewal of a dentist's license or a dental 
hygienist's license, 36 hours of acceptable continuing education are required to 
be completed by the applicant within a three-year period as defined in 
paragraphs (1)-(9) of this section: 
(1)-(2) (No Change.) 
(3) Each licensee shall select and participate in the continuing education 
courses endorsed by the providers identified in sec.104.2 of this title 
(relating to Provider's Continuing Eduction). <nl>Alternatively, a licensee who 
is unable to meet education course requirements as cited in paragraph (5) of 
this section may request that alternative courses or procedures be approved by 
the Continuing Education Committee.<ol> 
<nl>(A)<ol> Such requests must be in writing and submitted to and approved by 
the Continuing Education Committee prior to the expiration of the three-year 
period for which the alternative is being requested. 
<nl>(B)<ol> A licensee must provide supporting documentation detailing the 
reason why the continuing education requirements set forth in paragraph (5) of 
this section cannot be met and must submit a proposal for alternative education 
procedures. 
<nl>(C)<ol> Acceptable causes may include residence outside the Untied States, 
unanticipated financial or medical hardships, or other extraordinary 
circumstances that are documented. 
<nl>(D)<ol> Should the request be denied, the licensee must complete 
requirements as cited in paragraph (5) of this section. 
(4) (No Change.) 
(5) All 36 hours must be either technical or scientific as related to clinical 
care. <nl>The term "technical or scientific" as applied to continuing education 
shall mean that courses have significant intellectual or practical content and 
are designed to directly enhance the practitioner's knowledge and skill in 
providing clinical care to the individual patient.<ol> 
(6)-(8) (No Change.) 
(9) Individual courses and/or instructors will be approved by providers cited in 
sec.104.2 of this title. <nl>No more than 12 hours in a 36-hour accumulation may 
be interactive computerized courses. These hours must be provided by those 
entities cited in sec.104.2 of this title. Examples of interactive computer 
courses include those that involve interactive dialog through electronic linkage 
with an instructor in which manipulation of text or data by the licensee 
occurs.<ol> 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801318
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

CHAPTER 107. Dental Board Procedures
Procedures Governing Grievances, Hearings, and Appeals
22 TAC sec.107.63
The State Board of Dental Examiners proposes an amendment to sec.107.63, 
concerning informal disposition. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that informal settlement conferences can be conducted as closed 
meetings thereby facilitating settlement of complaints. 
There will be no effect on small and large businesses. There are no anticipated 
economic costs to persons who are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act. The proposed amendments will make it clear that 
panels of board members who participate in informal settlement conferences act 
only in an advisory capacity to the board. The rule as currently written allows 
the panel to dismiss cases; the amendment will allow the panel to only recommend 
dismissal to the board. Further, the panel no longer will be empowered to order 
further investigations but rather to refer a case to the Board Secretary for 
further action. 
The proposed amended rule does not affect other statutes, articles, or codes. 

sec.107.63. Informal Disposition. 
Pursuant to the Administrative Procedure and Texas Register Act, sec.13(e), 
ultimate disposition of any complaint or matter pending before the Board may be 
made by stipulation, agreed settlement, or consent order. Such informal 
dispositions will facilitate the expeditious change or correction of dental 
practice patterns which constitute violations of the Dental Practice Act or the 
rules of the Board. 
(1) (No change.) 
(2) Procedure. Upon referral by the secretary or executive director of a 
complaint or other matter for possible resolution by stipulation, agreed 
settlement, or consent order, the following procedure shall be followed.
(A)-(F) (No change.) 
(G) At the conclusion of the settlement conference, the Board's 
representative(s) shall make recommendations to the licensee for resolution or 
correction of any alleged violations of the Dental Practice Act or of the Board 
rules. Such recommendations may include any disciplinary actions authorized by 
the Dental Practice Act, Texas Civil Statutes, Article 4549, sec.3. The Board's 
representative(s) may, <nl>on the basis<ol> [also conclude] that a violation of 
the Dental Practice Act or the Board's rules has not been established 
<nl>recommend that <ol>[and may order] the case be closed, or the case may be 
referred <nl>to the Board Secretary <ol> for further investigation. 
(H)-(J) (No change.) 
<nl>(K)<ol> A recommendation to close a case requires no action by the 
Respondent prior to its presentation to the Board. 
(3) Consideration by the Board. 
(A) (No change.) 
(B) Upon an affirmative majority vote, the Board shall <nl> either<ol> enter an 
order approving the proposed settlement agreements<nl>, or without entry of an 
order, approve the recommendation to close.<ol> Said order shall bear the 
signature of the president and secretary of the Board, or of the officer 
presiding at such meeting and shall be included in the minutes of the Board. 
(C) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801319
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

TITLE 25. HEALTH SERVICES
PART II. Texas Department of Mental Health and Mental Retardation 
CHAPTER 409.Medicaid Programs
SUBCHAPTER L.Mental Retardation Local Authority (MRLA) Pilot Program
25 TAC 409.517, 409.519, 409.521, 409.523, 409.525, 409.527, 409.529, 409.531,
409.533, 409.535, 409.537, 409.539, 409.541
The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes 
new sec.sec.409.517, 409.519, 409.521, 409.523, 409.525, 409.527, 409.529, 
409.531, 409.533, 409.535, 409.537, 409.539, and 409.541 of Chapter 409, 
Subchapter L, concerning Mental Retardation Local Authority (MRLA) Pilot 
Program. 
The proposed new sections would govern the MRLA Pilot Program authorized by 
sec.533.0355 of the Texas Health and Safety Code, which allows the department to 
implement a pilot project to study an authority structure for service delivery 
at the local or regional level through a pilot mental health or mental 
retardation authority. This subchapter is also adopted in response to Senate 
Concurrent Resolution 55 of the 74th Texas Legislature which requires the State 
Medicaid Office to apply for a federal waiver to allow a consumer-directed pilot 
program for persons with mental retardation and other developmental 
disabilities. The State Medicaid Office, Texas Health and Human Services 
Commission, has delegated the authority to operate this pilot program to TDMHMR. 
The MRLA Pilot Program would be implementation on April 1, 1998, contingent on 
the approval of a waiver request submitted by TDMHMR to the Health Care 
Financing Administration.
The first part of the subchapter, proposed in the January 12, 1998, issue of the 
Texas Register (22 TexReg 12243-12248), provides the basic framework necessary 
to implement the MRLA Pilot Program: provisions related to the geographic 
boundaries of the pilot, service components, client eligibility criteria, 
payment categories and provider claims payment, criteria for payment, 
utilization review, other provider requirements, and the provider's right to an 
administrative hearing. The subchapter is being proposed in stages to enable 
implementation of the MRLA Pilot Program on April 1, 1998, which will provide 
for access to federal and state funds to serve an additional 225 individuals who 
are currently on waiting lists. 
The proposed sections in this issue of the Texas Register represent the second 
part of the subchapter. These sections deal with maintenance of consumer waiting 
lists, processes for applicant enrollment, certification of providers, 
corrective actions and sanctions, payment of rejected claims, calculation of 
consumer copayment, and provider certification standards. A related action, 
published in the December 19, 1997, issue of the Texas Register (22 TexReg 
12369-12372), is the proposal of rules by the Health and Human Services 
Commission to describe cost reimbursement methodology requirements for the pilot 
program. Responsibility for adopting rules governing the determination of fees, 
charges, and rates for Medicaid payments under Chapter 32, Texas Human Resource 
Code, transferred to the Health and Human Services Commission on September 1, 
1997, pursuant to sec.531.021 of the Texas Government Code. 
Don Green, chief financial officer, has determined that for each year of the 
first five-year period the rule, as proposed, is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the proposed sections. 
Ernest McKenney, director, Medicaid Administration, has determined that for each 
year of the first five years the new sections are in effect the public benefit 
anticipated will be that data from the pilot on the role of the local authority 
will be used to improve service delivery systems prior to state wide 
implementation For each year of the first five years the new sections are in 
effect there is no anticipated economic cost to persons who are required to 
comply with the proposed sections. There will be no effect on small business.
A public hearing will be held at 8:30 a.m., Monday, February 23, 1998, in Room 
240 of the main TDMHMR Central Office building (Building 2) at TDMHMR Central 
Office, 909 West 45th Street, Austin, Texas, to accept oral and written 
testimony concerning the proposal. Persons requiring an interpreter for the deaf 
or hearing impaired should notify Sheila Wilkins, Office of Policy Development, 
at least 72 hours prior to the hearing by calling (512) 206-4516. 
Questions about the content of the proposal may be directed to Mr. McKenney. 
Comments on the proposed sections should be submitted to Linda Logan, director, 
Policy Development, Texas Department Mental Health and Mental Retardation, P.O. 
Box 12668, Austin, TX 78711-2668, within 30 days of publication.
The amended sections are proposed under the Texas Health and Safety Code, 
sec.532.015(a), which provides TDMHMR with broad rulemaking authority; Human 
Resource Code, Chapter 32, sec.32.021, and Government Code, Chapter 531, 
sec.531.021, which provide the Texas Health and Human Services Commission 
(THHSC) with the authority to administer federal medical assistance funds and 
administer the state's medical assistance program. Senate Bill 509 of the 74th 
Texas Legislature clarifies THHSC's authority to delegate the operation of all 
or part of a Medicaid program to a health and human service agency. 
The section affects Human Resources Code, Chapter 32, and Government Code, 
Chapter 531, sec.531.021.

sec.409.517.Rejected Claims. 
If the Texas Department of Mental Health and Mental Retardation (TDMHMR) rejects 
a claim because of errors, the provider must research the errors, initiate 
appropriate corrective action, and resubmit a corrected claim to TDMHMR with 
supporting documentation within 180 calendar days from the end of the month of 
service or within 30 days of notification of a rejected claim by TDMHMR, 
whichever is later. 

sec.409.519.Calculation of Consumer Co-payment. 
(a) Consumers who are determined to be financially eligible based on the special 
institutional income limit are required to share in the cost of waiver services. 
The method for determining the consumer's co-payment is described in subsection 
(b) of this section and documented on the Texas Department of Human Services 
Medical Assistance Only Worksheet. When calculating the co-payment amount for 
consumers with incomes that exceed the supplemental security income (SSI) 
federal benefit rate (FBR), deduct the following: 
(1) the cost of the consumer's maintenance needs which must be equivalent to the 
special institutional income limit for eligibility under the Texas Medicaid 
program. 
(2) the cost of the maintenance needs of the consumer's dependent children. This 
amount is equivalent to the Temporary Assistance to Needy Families (TANF) basic 
monthly grant for children or a spouse with children, using the recognizable 
needs amounts in the TANF Budgetary Allowances Chart; and 
(3) the costs incurred for medical or remedial care which are necessary but are 
not subject to payment by Medicare, Medicaid, or any other third party. These 
include the cost of health insurance premiums, deductibles, and co-insurance. 
(b) The co-payment amount is the consumer's remaining income after all allowable 
expenses have been deducted. The co-payment amount is applied only to the cost 
of home and community-based services which are funded through the MRLA Pilot 
Program and specified on the consumer's IPC. The co-payment must not exceed the 
cost of services actually delivered. 
(c) Consumers must pay the cost sharing amount to the provider contracted to 
deliver authorized waiver services. 

sec.409.521.Spousal Impoverishment Provisions. 
(a) For program consumers with spouses who live in the community, the income and 
resource eligibility requirements are determined according to the spousal 
impoverishment provisions in the Social Security Act, sec.1924, and as specified 
in the Medicaid State Plan and in sec.409.505 (a)(1) of this title (relating to 
Client Eligibility Criteria.) 
(b) After the consumer is determined to be eligible for Medicaid, the Texas 
Department of Human Services (TDHS) determines the amount of the consumer's 
income applicable to payment. 
(c) To determine the amount of the consumer's income applicable to payment, TDHS 
uses the same methodology as if the consumer were residing in an institution, 
except that the personal needs allowance is equal to the institutional income 
cap. The spousal diversion is equal to the SSI income limit. 

sec.409.523.Maintenance of MRLA Pilot Program Referral List. 
(a) The local MRA will maintain an up-to-date list of individuals living in and 
waiting for MRLA Pilot Program services in the MRA's local service area.
(1) The MRA will assign the individual's placement on the referral list, 
chronologically by date of application. 
(2) The MRA will notify MRLA Pilot Program providers in its local service area 
of the process providers should use to refer applicants who wish to be placed on 
the referral list. 
(3) The MRA may disregard an applicant on the referral list only when the 
following documentation exists: 
(A) written permission of the applicant or the applicant's legal representative 
to remove the applicant's name from the referral list;
(B) the applicant is deceased; 
(C) the applicant moved out of the local service area; or
(D) TDMHMR has denied the applicant's enrollment and the applicant or the 
applicant's legal representative has had an opportunity to exercise the 
applicant's right to appeal the decision according to sec.409.505 of this title 
(relating to Client Eligibility Criteria). 
(4) At the written request of an applicant or the legal representative of an 
applicant who moves to the local service area of a different MRA, the original 
MRA will assist in transferring the applicant's name and current application 
date to the MRA having jurisdiction in the local service area where the 
applicant has moved. The MRA receiving the referral transfer will add the 
individual's name to its referral list maintaining the current application date 
assigned by the transferring MRA. 

sec.409.525.Process for Applicant Referral and Enrollment. 
(a) The MRA designated by TDMHMR for the geographic area in which the applicant 
resides will receive all requests from applicants seeking enrollment into the 
MRLA Pilot Program. 
(1) The MRA will register the applicant on the MRA's referral list as specified 
in sec. 409.523 of this title (relating to Maintenance of MRLA Pilot Program 
Referral List). 
(2) The MRA will notify the first applicant on the referral list when a 
placement vacancy occurs in the MRA's local service area and begin the 
referral/enrollment process by informing the applicant and/or the applicant's 
legal representative of his/her choice between participation in the ICF-MR 
Program or the MRLA Pilot Program and documenting the applicant's or the 
representative's choice of services. 
(3) If the applicant or representative chooses participation in the MRLA Pilot 
Program, the MRA will assign a Service Coordinator who will develop a Person-
Directed Plan (PDP). At minimum, the PDP will include the following: 
(A) a description of the services and supports the individual requires to 
continue living in the community; 
(B) a description of the individual's current services and supports, identifying 
those that would continue to be available if the individual enrolled in the MRLA 
Pilot Program (e.g., services not covered under the approved waiver); 
(C) individual outcomes to be achieved through MRLA Pilot Program service 
components and justification for each service component to be included in the 
applicant's IPC; 
(D) identification of all determinations needed to establish the applicant's 
eligibility for SSI or Medicaid benefits and for an ICF-MR Level of Care (LOC); 
and 
(E) actions and methods to be used to reach identified service outcomes, 
projected completion dates, and person(s) responsible for completion.
(4) The service coordinator prepares an application for the individual's 
enrollment into the MRLA Pilot Program. 
(A) If the applicant's financial eligibility for the MRLA Pilot Program must be 
established, the MRA will initiate, monitor, and support the individual's 
application processes necessary to obtain a financial eligibility determination. 
(B) The MRA will complete an LOC assessment form. The MRA will determine or 
validate a determination that the applicant has mental retardation in accordance 
with Chapter 405, Subchapter D of this title (relating to Determination of 
Mental Retardation and Appropriateness for Admission to Mental Retardation 
Services) or verify that the individual has been diagnosed by a licensed 
physician as having a related condition as defined in sec.406.202 of this title 
(relating to Definitions for Level-of-Care and Level-of-Need Criteria). The MRA 
will administer the Inventory for Client and Agency Planning (ICAP) and 
recommend a level-of-need assignment to TDMHMR in accordance with sec.409.507 of 
this title (related to Payment Category Assignment and Provider Claims Payment).
(C) Develop a proposed IPC with the applicant based on the PDP and 
sec.409.503(b) of this title (relating to Service Components of the MRLA 
Program). 
(5) The Service Coordinator will inform the applicant or the applicant's legal 
representative of all available MRLA Pilot Program providers in the local 
service area. The Service Coordinator will: 
(A) assist the applicant or the applicant's legal representative in selecting 
potential providers within the local service area; 
(B) review the proposed IPC with potential provider agencies as selected by the 
applicant or the applicant's legal representative; 
(C) arrange for meetings/visits with potential providers as desired by the 
applicant or the applicant's legal representative; 
(D) assure that the applicant's or representative's choice of a specific 
provider is documented, is signed by the applicant or the applicant's 
representative and is retained by the MRA in the individual's record; and
(E) negotiate/finalize the proposed IPC to be delivered by the selected 
provider.
(b) When the selected provider has agreed to deliver the services delineated on 
the IPC, the MRA will submit the application for enrollment to TDMHMR. TDMHMR 
will send notification of the applicant's approval or denial of MRLA Pilot 
Program enrollment to the applicant, the selected provider, and the responsible 
MRA. 
(c) The selected provider will initiate services in accordance with the approved 
IPC upon receipt of TDMHMR's enrollment approval. 

sec.409.527.Revisions and Renewals of IPCs, LOCs and LONs for Enrolled 
Individuals.
(a) At least annually, but prior to the expiration of an individual's IPC, the 
service coordinator, the individual, the individual's legal representative, and 
the provider must review the PDP to assure individual outcomes previously 
identified are relevant. The IPC is reviewed by the service planning team, 
updated to reflect any changes to the PDP, and is submitted to TDMHMR for 
approval. 
(b) The service coordinator, in collaboration with the service planning team, 
will initiate revisions to the IPC in response to changes in the individual's 
needs as documented in the current PDP. 

sec.409.529.Coordination of Transfers and Permanent Discharges. 
(a) Individuals who are currently receiving services from an HCS or HCS-O 
Program provider and who are moving to a geographic area covered by the MRLA 
Pilot Program may request to transfer their services to an MRLA Pilot Program 
provider. The service coordinator from the receiving MRA will:
(1) coordinate with the individual and their current HCS or HCS-O provider to 
facilitate selection of a provider and enrollment in the MRLA Pilot Program. 
(2) determine in conjunction with the current HCS or HCS-O provider and the 
receiving MRLA provider, an effective date for enrollment.
(3) review the current IPC with the individual and the receiving MRLA provider 
and will negotiate and finalize the initial MRLA Pilot Program IPC. The 
effective date of the individual's IPC as established in the HCS or HCS-O 
Program will not be changed upon enrollment with an MRLA provider. 
(b) Individuals currently receiving services within the MRLA Pilot Program may 
request to transfer their services to another MRLA provider in any of the local 
service areas specified in sec.409.501(a) of this title (relating to Geographic 
Area of the MRLA Pilot Program). 
(1) If an individual is transferring to a provider within the same MRA, the 
service coordinator will coordinate with the individual, the current provider, 
and the receiving provider to facilitate the transfer.
(2) If the transfer will be to another MRA in the MRLA Pilot Program, the 
sending and receiving MRAs will coordinate the transfer. The receiving service 
coordinator will review the current IPC with the individual and the receiving 
MRLA provider and will initiate any changes if needed. The effective date of the 
individual's IPC will not be changed upon transfer to another provider. 
(3) The MRAs will determine in conjunction with the current provider and the 
receiving MRLA provider, an effective date for transfer.
(c) Individuals who are moving outside the geographic area of the MRLA Pilot 
Program and who are currently receiving services from an MRLA provider may 
request to transfer their services to an HCS or HCS-O Program provider in the 
area to which they are moving. 
(1) If the individual is seeking HCS-O Program services, the service coordinator 
will confirm the individual's eligibility with TDMHMR.
(2) The receiving MRA will assist the individual or the individual's 
representative to facilitate selection of an HCS or HCS-O provider.
(3) The current and the receiving MRAs will determine in conjunction with the 
current MRLA provider and the receiving HCS or HCS-O provider an effective date 
for enrollment. 
(4) The effective date of the individual's IPC as established in the MRLA Pilot 
Program will not be changed upon enrollment into the HCS or HCS-O Program. 
(d) TDMHMR must approve all discharges from program services.
(1) The service coordinator must submit the request to TDMHMR to discharge an 
individual from program services. 
(2) TDMHMR will send a written discharge notification to the participant or the 
participant's representative, the provider, and the MRA indicating the effective 
date of the discharge and the participant's right to a fair hearing in 
accordance with sec.409.505 of this title (relating to Client Eligibility 
Criteria). 

sec.409.531.Certification Status.
(a) Program providers contracted with TDMHMR for participation in the MRLA Pilot 
Program must be in continuous compliance with the MRLA Pilot Program Principles 
for Program Providers as described in Each program provider participating in the 
MRLA Pilot Program will receive a certification review conducted by TDMHMR or 
its designee at least annually in order to maintain certification status.
Figure 1:25 TAC sec.409.531(a).
(1) TDMHMR personnel will conduct all certification reviews of program providers 
operated by the local Mental Retardation Authority. 
(2) TDMHMR or its designee will conduct all certification reviews of non-MRA 
operated program providers. 
(b) Certification review corrective action plans required from the program 
provider as determined by prior reviews under the HCS or HCS-O Consumer 
Principles for Evidentiary Certification and related timelines remain in effect 
until the first certification review as a program provider participating in the 
MRLA Pilot Program. 

sec.409.533.Hazards to Health, Safety, and Welfare. 
A hazard to health, safety, and welfare is any condition that the review team 
determines may result in imminent death, or serious or permanent harm to an 
individual. A hazard is designated as such in the MRLA Pilot Program 
certification review report. If the hazard is corrected during the review visit, 
the corrections will also be designated in the report. 
(1) Immediate Corrective Action. Findings determined to be a hazard to health, 
safety and welfare must be corrected by the program provider before the exit 
conference of the respective review. 
(2) Sanctions. If the program provider does not correct the hazard to health, 
safety, and welfare before the exit conference, 
(A) the program provider will be denied certification, and
(B) the MRA with permission of the Texas Department of Mental Health and Mental 
Retardation (TDMHMR) will immediately coordinate development of alternative 
services for people enrolled in the provider's program, as appropriate. 

sec.409.535.Compliance. 
If any item of noncompliance with the MRLA Pilot Program Evidentiary Principles 
for Program Providers remains uncorrected at the time of the exit conference, 
the program provider must complete corrective action within 30 calendar days 
following the exit conference. TDMHMR or its designee must complete a follow-up 
review within 15 calendar days following the 30th day. The follow-up review may 
be either a desk review of documentation or an on-site review at the review 
team's discretion. 

sec.409.537. Sanctions. 
(a) If the program provider does not correct all remaining items of 
noncompliance by the completion of the first follow-up review, a vendor hold may 
be implemented and will continue until corrective action is confirmed by TDMHMR. 
(1) TDMHMR or its designee will complete a second follow-up review between 30 
and 60 calendar days from the date the vendor hold was implemented.
(2) If the program provider corrects all items of noncompliance by the 
completion of the second follow-up review, the vendor hold is removed effective 
the date the review is completed. 
(b) TDMHMR denies certification and initiates contract cancellation if the 
program provider does not correct all items of noncompliance by the completion 
of the second follow-up review. 

sec.409.539.Unannounced or Intermittent Review Visits. 
(a) TDMHMR or its designee may conduct unannounced or intermittent review visits 
at any time, with or without prior notice to the program provider.
(b) Items of noncompliance noted in unannounced or intermittent review visits 
may result in certification action described in sec.sec.409.533 and .537 of this 
title (relating to Hazards to Health, Safety, and Welfare; Compliance; and 
Sanctions). 

sec.409.541.Compliance with MRLA Pilot Program Principles for Mental Retardation 
Authorities. 
(a) Mental Retardation Authorities participating in the MRLA Pilot Program must 
be in continuous compliance with the MRLA Pilot Program Principles for 
Authorities as described in 
Figure 2:25 TAC sec.409.541(a). 
(b) Each Mental Retardation Authority participating in the MRLA Pilot Program 
will receive a compliance review conducted by TDMHMR at least annually. 
(c) If any item of noncompliance remains uncorrected by the Mental Retardation 
Authority at the time of the review exit conference, the Mental Retardation 
Authority will develop a plan of correction with timelines to be implemented 
after approval by TDMHMR. TDMHMR may take action as specified in the performance 
contract between the local Mental Retardation Authority and TDMHMR if the MRA 
fails to develop or implement an approved plan of correction.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801449
Ann Utley
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 206-45516

TITLE 28. INSURANCE
PART I. Texas Department of Insurance
CHAPTER 5.Property and Casualty Insurance
SUBCHAPTER A.Automobile Insurance
Notice Requirements to Claimants Regarding Motor Vehicle Repairs
28 TAC sec.5.501
The Texas Department of Insurance proposes new sec.5.501 concerning the 
procedures that an insurer (including a person acting on behalf of an insurer) 
must follow in order to give the required notice to beneficiaries or third-party 
claimants regarding their motor vehicle repair rights under the Insurance Code, 
Article 5.07-1. Article 5.07-1 was amended by House Bill 423, 75th Texas 
Legislature, 1997, to mandate that the commissioner adopt a rule establishing 
the method or methods insurers shall use to comply with the notice provisions 
contained in section (e) of 5.07-1. The proposed rule requires the insurer to 
provide the notice to a beneficiary or third-party claimant. One requirement of 
the proposed rule is for an insurer to give a copy of the prescribed notice to 
any claimant at the time the vehicle is presented to the insurer in connection 
with a claim for damage repair. If the vehicle is presented to the insurer, the 
notice must be given at that time. The proposed rule alternatively provides that 
if the claim is made by means other than presentation of the vehicle to the 
insurer, then the insurer must mail the prescribed notice to any claimant who is 
not otherwise given the notice within three business days from the making of the 
claim. In such a case, the insurer must mail the notice within three business 
days of receiving notice of the claim by other means (such as in writing or by 
telephone), unless the notice is delivered to the claimant by some other means 
within that time. 
House Bill 423, enacted by the 75th Texas Legislature, 1997, amended Article 
5.07-1 entitled Disclosure of Consumer Information. Newly added section (e) of 
Article 5.07-1 provides, "At the time the vehicle is presented to an insurer or 
an insurance adjuster or other person in connection with a claim for damage 
repair, the insurer or insurance adjuster or other person shall provide to the 
beneficiary or third-party claimant notice of the provisions of this article." 
Section (e) also provides that the commissioner shall adopt a rule establishing 
the method or methods insurers shall use to comply with the notice provisions in 
this section. The proposed rule is necessary to implement the provisions of 
section (e) of Article 5.07-1. The proposed rule establishes the methods to be 
used to provide notice to a beneficiary or third-party claimant and prescribes 
the actual notice that must be provided by an insurer. The proposed rule defines 
the term "insurer" to include any person acting on behalf of an insurer through 
actual or apparent authority, regardless of whether employed by the insurer. 
This definition is in accord with the statutory language which requires the 
notice to be given by the insurer, insurance adjuster or "other person" in 
connection with a claim for damage repair. The requirement of the proposed rule 
that an insurer provide the notice to a beneficiary or third-party claimant is 
necessary to comply with the terms of Article 5.07-1. Under the proposed rule, 
when the vehicle is presented to the insurer, the prescribed notice must be 
given to the claimant at that time. This method of notification complies with 
the specific requirement of section (e) of Article 5.07-1 which specifies that 
the notice must be given when the vehicle is presented to an insurer. The 
proposed rule also requires an insurer to mail the prescribed notice to a 
claimant within three business days of receiving notice of the claim when the 
claim is made by means other than the presentation of the vehicle to an insurer. 
The proposed rule allows an exception to the mailing of the notice if the 
insurer delivers the notice to the claimant by some other means within three 
business days of the claim. This additional method for providing notice to a 
beneficiary or third-party claimant is necessary to ensure that all 
beneficiaries and third-party claimants who submit a claim to an insurer receive 
notification of the provisions of Article 5.07-1. In many cases, an insurer's 
claims handling procedure will not require the claimant to present the vehicle 
to the insurer. Without the additional method for providing notice, many 
claimants may not obtain information about their rights in connection with a 
motor vehicle repair. The proposed rule ensures complete disclosure of the 
contents of Article 5.07-1 to each claimant. The proposed rule allows an insurer 
to send, along with the notice, a letter that addresses the issue of liability. 
The proposed rule also allows the insurer to include in the notice an optional 
provision which explains that providing the notice does not constitute an 
admission of liability by the insurance company. This optional provision, 
concerning the insurer's liability, is intended to alleviate the potential for 
misconceptions concerning the purpose and meaning of the notice. The proposed 
rule requires that the notice be printed in at least 10 point type on a separate 
page from any other material, and must be attached to, or printed on the reverse 
side of a copy of Article 5.07-1. The type-size requirement is intended to make 
the notice conspicuous. Similarly, the proposed section requires that the notice 
and statute be provided together, but separate from any letter or other 
material, to help draw the claimant's attention to the information and to 
provide all of the pertinent information to the claimant in a compact manner. 
David Durden, deputy commissioner for property and casualty lines has determined 
that for the first five-year period the proposed amendment is in effect, there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the section and there will be no effect on local 
employment or the local economy. 
Mr. Durden has also determined that for each year of the first five years the 
proposed amendment is in effect, the public benefit anticipated as a result of 
administering the section will be that consumers who have automobile insurance 
claims that involve repair of damage to their vehicles will obtain information 
concerning their rights in connection with a motor vehicle repair. Mr. Durden 
estimates that for the first five years the section is in effect, the cost to 
persons required to comply with the notice requirements will be $9,568,702. The 
cost of compliance with this rule is the cost to insurers who must provide the 
notice to claimants during the claims settlement process. The cost estimate is 
based on information provided by a sample of insurance companies in response to 
an informal survey sent out by the department and also data reported by a sample 
of insurance companies in their Fast Track statistical reports. The survey 
revealed that insurers estimated the additional time added to each claims 
handling transaction would range from .5 minutes to 5 minutes per transaction at 
$.23 to $.77 per minute. The labor cost estimate for the first year of $1.00 per 
transaction is based on a time estimate of 2 minutes per transaction at $.50 per 
minute. The labor cost per transaction is a blended cost that would include all 
transactions done, including both those transactions conducted in person and 
through the mail. The additional costs per transaction also include $.23 for 
postage and $.04 for system, printing, and paper. The postage cost is estimated 
to be $.23 per transaction rather than $.29 because this cost is reduced to 
reflect that 20% of the transactions are done in person and not by mail. The 
total cost per transaction for the first year is estimated to be $1.27. The 
first year cost per transaction figure of $1.27 is adjusted for inflation at a 
rate of 2% to arrive at $1.30 for the second year. The first year cost per 
transaction figure is further adjusted for inflation at a rate of 2.5% for years 
3-5 to arrive at $1.33 for the third year, $1.36 for the fourth year, and $1.40 
for the fifth year. The number of auto insurance claims per year was estimated 
from an average of the data reported by a sample of insurers in the survey and 
from estimated industry claims from Fast Track data to be 1,439,082 claims 
transactions per year. The total cost for each of the five years was calculated 
by multiplying the estimated cost per transaction for each year by the estimated 
number of claims transactions per year. The total cost to insurers is estimated 
to be $1,827,635 in the first year, $1,864,187 in the second year, $1,910,792 in 
the third year, $1,958,562 in the fourth year, and $2,007,526 in the fifth year. 
Mr. Durden has determined that the effect of this section on small businesses 
results mostly, if not entirely, from the legislative enactment of HB 423 which 
mandates that the commissioner adopt a rule establishing the method insurers 
shall use to comply with the notice provisions contained in Article 5.07-1. The 
maximum additional cost for insurers that can be associated with this proposed 
section ranges from $1.27 per transaction for the first year to $1.40 for the 
fifth year. The total cost to an insurer depends upon the number of claims that 
the insurer handles in a given year. Both small and large insurers affected by 
this section would incur the same costs for each notice given to a consumer. The 
cost per hour of labor; postage; and for system, printing and paper would not 
vary between the large and small insurers. The requirement of notice in this 
section is mandated by the underlying statute and cannot be waived for small 
businesses. 
Comments on the proposal to be considered by the Department must be submitted 
within 30 days after publication of the proposed section in the Texas Register 
to Caroline Scott, General Counsel and Chief Clerk, Texas Department of 
Insurance, P. O. Box 149104, Mail Code 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, Texas Department of Insurance, P. 
O. Box 149104, Mail Code 104-5A, Austin, Texas 78714-9104.
The amendment is proposed under the Insurance Code, Articles 5.07-1, 5.10, 5.98, 
and 1.03A; and the Government Code sec.sec.2001.004-2001.038. Article 5.07-1 
requires the commissioner to adopt a rule establishing the method that insurers 
must use to provide claimants with notice of their repair rights as specified in 
Article 5.07-1. Article 5.10 authorizes the commissioner to adopt and enforce 
all reasonable rules and regulations that are consistent with subchapter A of 
Chapter 5. Article 5.98 authorizes the commissioner to adopt reasonable rules 
and rates that are appropriate to accomplish the purposes of Chapter 5. Article 
1.03A authorizes the commissioner to adopt rules and regulations, which must be 
for general and uniform regulation, for the conduct and execution of the duties 
and functions of the department only as authorized by a statute. The Government 
Code, sec.sec.2001.004-2001.038 (Administrative Procedure Act) authorize and 
require each state agency to adopt rules of practice stating the nature and 
requirements of available formal and informal procedures and prescribe the 
procedures for adoption of rules by a state administrative agency. 
The following articles of the Insurance Code are affected by this section: 
Insurance Code, Articles 5.07-1, 5.10, and 5.98 

sec.5.501. Notice Requirements To Claimants Regarding Motor Vehicle Repairs. 
(a) The word "insurer" as used in this rule, includes any person acting on 
behalf of an insurer through actual or apparent authority, regardless of whether 
employed by the insurer. 
(b) An insurer must give the notice prescribed by this rule to any beneficiary 
or third-party claimant who makes a claim regarding damage to a vehicle. If a 
claimant presents the vehicle to the insurer in connection with a claim for 
damage repair, the notice must be given to the claimant at that time. If the 
claim is made instead by other means (such as in writing or by telephone) an 
insurer must mail the notice to the claimant within three business days of 
receiving notice of the claim, unless the insurer otherwise delivers the 
claimant the notice within those three business days. An insurer, if it chooses 
to address the liability issue initially, may send or deliver its own letter 
along with the notice. The notice may include the Optional Provision. The notice 
must be on a separate page from any letter or other material, except as 
otherwise provided in this rule. 
(c) The notice must be printed in at least ten point type, must be attached to, 
or printed on the reverse side of, a copy of the Insurance Code, Article 5.07-1, 
and must read as follows: 
FIGURE NO. 1: 28 TAC sec.5.501(c) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801451
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6327

CHAPTER 19.Agent's Licensing
SUBCHAPTER I.Licensing Fees
28 TAC sec.19.802
The Texas Department of Insurance proposes an amendment to sec.19.802, 
concerning the amounts of fees for original and renewal applications, 
appointments and examinations for various licensees. This amendment would reduce 
the fees required for an original application and for renewal of a utilization 
review agent certification. Section 3(f) of Insurance Code, Article 21.58A 
(regarding Health Care Utilization Review Agents) states that the department 
shall establish and administer certification and renewal fees in amounts no 
greater than is necessary to cover the cost of administration of the article. 
The current fee for original applications of utilization review agents is 
$2,157, and for renewal applications of utilization review agents is $2076. The 
department proposes to reduce the original application fee to $2,150 and the 
renewal fee to $545 to better reflect the administrative cost to process renewal 
applications for utilization review certification. 
Leah Rummel, Deputy Commissioner, HMO/URA Group, has determined that for each 
year of the first five years the proposed section will be in effect, there will 
be a slight fiscal implication for state government in that the reduction in 
fees remitted to the general revenue will be approximately $230,000. This amount 
is calculated based on an estimate of 150 renewals per year. If a local 
government or small business is an utilization review agent, their costs 
associated with an original application or renewal application will be lower. 
Otherwise, there will be no effect on the local economy or local employment. 
Ms. Rummel has also determined that for each year of the first five years the 
proposed section is in effect, the anticipated public benefit of enforcing the 
section is that utilization review agents will be charged lower original 
application and significantly lower renewal fees that more accurately reflect 
the administrative cost to process their original and renewal applications. 
Since the proposed section lowers the cost of fees for application and renewal 
application of utilization review agents and places no additional burden on the 
agents, there is no anticipated additional cost to comply with the section for 
utilization review agents. Ms. Rummel has determined that there is no adverse 
impact on small businesses as a result of the proposed section. The cost to 
apply for each utilization review agent who is an employee of a large or small 
business, and the cost for each business operating as a utilization review agent 
will be identical and lower under the proposed section. The cost of labor per 
hour is not affected by the proposed section and there is thus no adverse 
economic effect upon small businesses.
Comments on the proposal, to be considered by the department, must be submitted 
in writing, within 30 days after publication of the proposed amendment in the 
Texas Register, to Caroline Scott, General Counsel & Chief Clerk, Texas 
Department of Insurance, P.O. Box 149104, Mail Code 113-1C, Austin, Texas 78714-
9104. An additional copy of the comments must be submitted to Leah Rummel, 
Deputy Commissioner, HMO/URA Group, Texas Department of Insurance, P.O. Box 
149104, MC 108-6A, Austin, Texas 78714-9104. Request for a public hearing should 
be submitted separately to the Chief Clerk's office. 
The amended section is proposed under the Insurance Code, Articles 21.58A and 
1.03A. Insurance Code, Article 21.58A provides for the certification of 
utilization review agents and sets out the standards and procedures to be used 
by such agents when conducting utilization reviews. Section 3(f) of Article 
21.58A states that the department shall establish and administer certification 
and renewal fees in amounts no greater than is necessary to cover the cost of 
administration of the article. Article 1.03A provides that the Commissioner of 
Insurance may adopt rules and regulations to execute the duties and functions of 
the Texas Department of Insurance only as authorized by a statute. The 
Government Code, sec.sec.2001.004 et seq. authorizes and requires each state 
agency to adopt rules of practice setting forth the nature and requirements of 
available procedures and to prescribe the procedures for adoption of rules by a 
state agency. 
The following rules and statutes are affected by the proposed amendment: 
Insurance Code, Article 21.58A 

sec.19.802.Amounts of Fees.
(a) (No change.) 
(b) The amounts of fees are as follows: 
(1)-(21) (No change.) 
(22) utilization review agent: 
(A) original application - <nl>$2,150 <ol> [$2,157
(B) renewal - <nl>$545.<ol> [$2,076.] 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 26, 1998.
TRD-9801157
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6327

TITLE 37. PUBLIC SAFETY AND CORRECTIONS
PART VI. Texas Deparmtent of Criminal Justice
CHAPTER 152.Institutional Division
SUBCHAPTER D.Other Rules
37 TAC sec.152.51
The Texas Department of Criminal Justice proposes an amendment to sec.152.51 
concerning authorized witnesses to the execution of an inmate sentenced to 
death. 
The amendment specifies those persons authorized to witness the execution of an 
inmate sentenced to death based upon the recommendation of the Victim Services 
Division and the approval of the Director of the Texas Department of Criminal 
Justice Institutional Division. 
David P. McNutt, Deputy Director for Administrative Services has determined that 
there will be no fiscal implications for state or local government as a result 
of enforcing or administering this section as proposed. 
Mr. McNutt also has determined that the public benefit anticipated as a result 
of enforcing the section as proposed will be potential closure for family 
members of murder victims. There will be no effect on small businesses. There is 
no anticipated economic cost to individuals, as no individuals have a duty to 
comply. 
Comments should be directed to Carl Reynolds, General Counsel, Texas Department 
of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from 
the general public should be received within 30 days of the publication of this 
proposal. 
The amendment is proposed under the Government Code, sec.492.013, which grants 
general rulemaking authority and the Code of Criminal Procedure, Article 43.20. 
Cross Reference to Statute: Code of Criminal Procedure, Article 43.20.

sec.152.51. Authorized Witnesses to the Execution of an Inmate Sentenced to 
Death. 
(a) (No change.) 
(b) Definition. "Close relative of the deceased victim" means the following 
persons in relation to the victim for whose death an inmate is sentenced to 
death: 
(1)-(3) (No change.) 
(4) another individual with a close relationship to the deceased victim, <nl>or 
to a close relative of the victim,<ol> upon <nl> the recommendation of the 
Victim Services Division (VSD) and <ol>approval <nl> of <ol> [by] the Director 
of the [Institutional Division] Texas Department of Criminal Justice 
Institutional Division (TDCJ-ID).
(c) Witnesses. The only persons authorized to witness an execution are as 
follows: 
(1)-(8) (No change.) 
(9) if there are fewer than five close relatives of the deceased victim<nl>:<ol> 
[,] 
<nl>(A)<ol> additional close relatives of a victim for whose death the inmate 
has been convicted but for whose death the inmate is not sentenced to death<nl>; 
and <ol>[,] 
<nl>(B)<ol> if there are still fewer than five persons, additional close 
relatives of a victim for whose death the inmate is unequivocally responsible, 
upon the recommendation of the Victim Services Division and approval of the 
Director of TDCJ-ID[, up to a total of five close relatives under this paragraph 
and paragraph (8) of this subsection]. 
(d)-(e) (No change.) 
(f) Victim Notification. 
(1) (No change.) 
(2) The VSL/Emergency Action Center (EAC) shall provide a list of scheduled 
executions to the TDCJ <nl>(VSD)<ol> [Victim Services Office (VSO)]. Subsequent 
updates regarding significant changes pertaining to the execution (e.g., dates, 
court rulings, etc.) shall also be providedto the TDCJ <nl>VSD<ol> [VSO] by the 
VSL/EAC in an expedient manner. 
(3) The <nl>VSD<ol> [VSO] is responsible for notifying the relatives of the 
victim of the scheduled execution date, time, and location, upon request. It is 
the responsibility of the relative to notify the TDCJ <nl>VSD<ol> [VSO] of any 
subsequent address changes and their intent to attend. 
(4) The relative of the victim must be identified and approved by the 
<nl>VSD<ol> [VSO]. 
(5) It is the responsibility of the <nl>VSD<ol> [VSO] to notify the VSL, no 
later than five days prior to the scheduled execution date, of the names and 
contact numbers for those persons planning to attend. 
(6) The <nl>VSD<ol> [VSO] shall contact the relative of the victim and provide 
information regarding the written procedures affecting their participation. 
(g) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801436
Carl Reynolds
General Counsel
Texas Department of Criminal Justice
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 46663-9693

CHAPTER 159.Special Programs
37 TAC sec.159.9
The Texas Department of Criminal Justice proposes new sec.159.9 concerning a 
memorandum of understanding between the Department and the Texas Commission on 
Law Enforcement Officer Standards and Education regarding firearms proficiency 
training for supervision officers. House Bill 2909, passed by the 75th 
Legislature, requires the two agencies to enter into the agreement. The new 
section adopts by reference new 37 TAC sec.211.33 proposed by the Texas 
Commission on Law Enforcement Officer Standards and Education in the December 
26, 1997, issue of the Texas Register (22 TexReg 12708). 
David P. McNutt, Deputy Director for Administrative Services has determined that 
there may be fiscal implications for state and local governments as a result of 
enforcing or administering the section as proposed. The Texas Department of 
Criminal Justice will require individual officers to bear the costs of training, 
certification, and equipment if the officer chooses to carry a weapon in the 
course of his or her duties. Local community supervision and corrections 
departments will decide independently as to whether the program will be allowed 
or required, see 37 TAC sec.163.34 adopted in this issue of the Texas Register. 
There are approximately 3,500 probation and community supervision officers in 
the state. It has been estimated by the Texas Commission on Law Enforcement 
Officer Standards and Education that an authorized firearms training program 
will cost between $750 and $1,200 and the Texas Commission on Law Enforcement 
Officer Standards and Education will charge $20 for issuance of a Firearms 
Proficiency Certificate. 
Mr. McNutt also has determined that for each year of the first five years the 
new section is in effect, the public benefit anticipated as a result of 
enforcing the section as proposed will be adequate training and certification 
for supervision officers who choose to or are required to carry weapons in the 
course of their duties. There will be no effect on small businesses. The 
individual supervision officers who choose to or are required to carry weapons 
in the course of their duties may bear the cost of training, certification, and 
equipment. 
Comments should be directed to Carl Reynolds, General Counsel, Texas Department 
of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from 
the general public should be received within 30 days of the publication of this 
proposal. 
The new section is proposed under sec.76.0051, Government Code, which authorizes 
supervision officers to carry weapons; sec.415.038, which requires TCLEOSE 
training for supervision officers; and sec.509.003, which provides general 
rulemaking authority for CJAD standards. 
Cross Reference to Statute: Government Code, sec.76.0051 and sec.415.038.

sec.159.9. Firearms Proficiency Training for Supervision Officers / Memorandum 
of Understanding
(a) The Texas Department of Criminal Justice adopts by reference a memorandum of 
understanding (MOU) with the Texas Commission on Law Enforcement Officer 
Standards and Education, sec.211.33 of this title (relating to Memorandum of 
Understanding Regarding Firearms Proficiency Training for Supervision Officers), 
which establishes the responsibilities between the two agencies in developing a 
basic training program in the use of firearms by community supervision officers 
and parole officers. Section 163.34 of this title (relating to Carrying of 
Weapons) governs the use of firearms for Community Supervision Officers.
(b) The MOU is required by House Bill 2909 (Chapter 1261, Session Laws, 75th 
Legislature). 
(c) Copies of the MOU are filed in the Office of the Texas Commission on Law 
Enforcement Officer Standards and Education, 6330 U.S. Highway 290 East, Suite 
200, Austin, Texas 78723. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801437
Carl Reynolds
General Counsel
Texas Department of Criminal Justice
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-9693

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART I. Texas Department of Human Services
CHAPTER 19. Nursing Facility Requirements for Licensure and
Medicaid Certification
SUBCHAPTER J. Quality of Care
40 TAC sec.19.901
The Texas Department of Human Services (DHS) proposes an amendment to 
sec.19.901, concerning quality of care, in its Nursing Facility Requirements for 
Licensure and Medicaid Certification chapter. The purpose of the amendment is to 
ensure that nursing facilities that admit children with special needs provide 
adequate staffing for their care. The amendment targets children with 
respiratory care needs and those with daily tracheostomy care. 
Eric M. Bost, commissioner, has determined that for the first five-year period 
the section is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the section. Mr. Bost also 
has determined that for each year of the first five years the section is in 
effect the public benefit anticipated as a result of enforcing the section will 
be that medically fragile children in nursing facilities will receive closer 
supervision and care. There will be no effect on small businesses, since the 
only two nursing facilities that would be affected by the rules are not small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the proposed section. 
Questions about the content of this proposal may be directed to Sharon Balcezak 
at (512) 438-3529 in DHS's Long Term Care Policy Section. Written comments on 
the proposal may be submitted to Supervisor, Rules and Handbooks Unit-149, Texas 
Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, 
within 30 days of publication in the Texas Register.
The amendment is proposed under the Health and Safety Code, Chapter 242, and 
under the Human Resources Code, Title 2, Chapter 22, which authorizes the 
department to administer public assistance programs. 
The amendment implements the Health and Safety Code, sec.242.037, and the Human 
Resources Code, sec.sec.22.001-22.030. 

sec.19.901. Quality of Care. 
Each resident must receive and the facility must provide the necessary care and 
services to attain or maintain the highest practicable physical, mental, and 
psychosocial well-being, as defined by and in accordance with the comprehensive 
assessment and plan of care. If children are admitted to the facility, care and 
services must be provided to meet their unique medical and developmental needs. 
(1)-(13) (No change.) 
<nl>(14)<ol> Pediatric care. 
<nl>(A)<ol> Licensed nursing care of children. A facility caring for children 
must have twenty-four hour a day on-site licensed nursing staff in numbers 
sufficient to provide safe care. For any facility with five or more children 
under 26 pounds, at least one nurse must be assigned solely to the care of those 
children. 
<nl>(B)<ol> Fewer than five pediatric residents. Facilities with fewer than five 
pediatric residents must assure that the children's rooms are in close proximity 
to the nurses' station. 
<nl>(C)<ol> Respiratory care of children. 
<nl>(i)<ol> To facilitate the care of ventilator-dependent children or children 
with tracheostomies, a facility must group those children in rooms contiguous or 
in close proximity to each other. An exception to this rule is children who are 
able to be schooled off-site. 
<nl>(ii)<ol> Facilities must assure that alarms on ventilators, apnea monitors, 
and any other such equipment uniquely identify the child or the child's room. 
<nl>(iii)<ol> A facility caring for children with tracheostomies requiring daily 
care (including ventilator-dependent children with tracheostomies) must have 
twenty-four hour a day on- site respiratory therapy staff in numbers sufficient 
to provide a safe ratio of respiratory therapist per these residents. For the 
purposes of this rule, respiratory therapy staff is defined as a registered 
respiratory therapist (RRT), a certified respiratory therapy technician (CRT), 
or a licensed nurse whose primary function is respiratory care. 
<nl>(I)<ol> If the facility cares for nine or more children with tracheostomies 
requiring daily care (including ventilator-dependent children with 
tracheostomies), the facility must maintain a ratio of no less than one 
respiratory therapy staff per nine tracheostomy residents twenty-four hours a 
day.
<nl>(II)<ol> If the facility cares for six or more ventilator dependent 
children, the facility must: 
<nl>(-a-)<ol> designate a respiratory therapy supervisor, either on staff or 
contracted who must be credentialed by the National Board for Respiratory Care 
(either CRT or RRT). 
<nl>(-b-)<ol> provide and document that all respiratory therapy staff is trained 
in the care of children who are ventilator dependent. This training must be 
reviewed annually. 
<nl>(-c-)<ol> assure that appropriate care, maintenance, and disinfection of all 
ventilator equipment and accessories occurs. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801314
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 1, 1998
For further information, please call: (512) 438-3765

PART XII. Texas Board of Occupational Therapy Examiners 
CHAPTER 362.Definitions
40 TAC sec.362.1
The Texas Board of Occupational Therapy Examiners proposes amended, 362.1, 
concerning Definitions. This amended section changes certain definitions to 
strengthen supervisory requirements. 
John P. Maline, Executive Director of the Executive Council of Physical Therapy 
and Occupational Therapy Examiners, has determined that for the first five-year 
period the rule is in effect there will be no effect on state/local government. 
Mr. Maline also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be stronger supervision of persons delivering occupational therapy, 
resulting in better, more effective and appropriate services. There will be no 
effect on small business and no anticipated economic cost to persons having to 
comply. 
Comments on the proposed rule may be submitted to Alicia Dimmick Essary, OT 
Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 
2-510, Austin, Texas 78701-3942. 
The amended section is proposed under the Occupational Therapy Practice Act, 
Texas Civil Statutes, Article 8851, which provides the Texas Board of 
Occupational Therapy Examiners with the authority to adopt rules consistent with 
this Act to carry out its duties in administering this Act. Texas Civil 
Statutes, Article 8851 is affected by this new section. 

sec.362.1. Definitions 
The following words and terms, when used in these rules, shall have the 
following meanings, unless the context clearly indicates otherwise. 
Continuing Supervision, OT- [Includes frequent, face-to-face meetings which 
occur at the worksite of the temporary licensee and regular interim 
communication between the supervising OTR or LOT and the temporary licensee by 
telephone, written report, or conference. The contact must occur at the worksite 
of the temporary licensee at minimum on a weekly basis.] <nl> Includes, at a 
minimum, the following: weekly, face-to-face meetings at the worksite of the 
temporary licensee(as defined later in this chapter); regular interim 
communication between the supervising OTR or LOT and the temporary licensee by 
telephone, written report, or conference; and monthly encounters where the OTR 
or LOT directly observes the temporary licensee treating one or more patients or 
clients.<ol> 
Continuing Supervision, OTA - [Includes frequent, face-to-face meetings which 
occur at the worksite of the temporary licensee and regular interim 
communication between the supervising OTR or LOT and the temporary licensee by 
telephone, written report, or conference. The contact must occur at the worksite 
of the temporary licensee at minimum on a weekly basis. Sixteen hours of 
supervision per month must be documented and can include the minimum weekly 
supervisory contacts made at the worksite of the temporary licensee.] 
<nl>Includes, at a minimum, the following: weekly face-to-face meetings at the 
worksite of the temporary licensee (as defined later in this chapter); regular 
interim communication between the supervising OTR or LOT and the temporary 
licensee by telephone, written report, or conference; and; monthly encounters 
where the OTR or LOT directly observes the temporary licensee treating one or 
more patients or clients. Sixteen hours of supervision per month must be 
documented.<ol> 
General Supervision - [Includes frequent, weekly face-to-face meetings at the 
worksite and regular interim communication between the OTR or LOT and the COTA 
or LOTA by telephone, written report, or conference.] <nl> Includes, at a 
minimum, the following components: weekly face-to-face meetings at the worksite 
of the COTA or LOTA (as defined later in this chapter); regular interim 
communication between the OTR or LOT and the COTA or LOTA by telephone, written 
report, or conference; and monthly encounters where the OTR or LOT directly 
observes the COTA or LOTA treating one or more patients or clients. Eight hours 
of supervision per month must be documented for full-timeCOTAs or LOTAs. Part-
time COTAs or LOTAs may pro-rate their supervision.<ol>
OT Aide or OT Orderly - A person who aids in the practice of occupational 
therapy and whose activities require on-the-job training and <nl> close 
personal<ol> [on-site] supervision by an OTR, LOT, COTA or LOTA. 
<nl>Worksite<ol><nl> - The place where services are delivered to a patient or 
client.<ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801418
John P. Maline
Executive Director
Texas Board of Occupational Theraapy Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 305-6900

CHAPTER 372.Provision of Services
40 TAC sec.372.1
The Texas Board of Occupational Therapy Examiners proposes amended, 372.1, 
concerning Provision of Services. This amended section will strengthen 
supervision by placing more responsibility with the OTR and reducing delegation 
to the COTA. 
John P. Maline, Executive Director of the Executive Council of Physical Therapy 
and Occupational Therapy Examiners, has determined that for the first five-year 
period the rule is in effect there will be no effect on state/local government. 
Mr. Maline also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be stronger supervision of persons delivering occupational therapy, 
resulting in better, more effective and appropriate services. There will be no 
effect on small business and no anticipated economic cost to persons having to 
comply. 
Comments on the proposed rule may be submitted to Alicia Dimmick Essary, OT 
Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 
2-510, Austin, Texas 78701-3942. 
The amended section is proposed under the Occupational Therapy Practice Act, 
Texas Civil Statutes, Article 8851, which provides the Texas Board of 
Occupational Therapy Examiners with the authority to adopt rules consistent with 
this Act to carry out its duties in administering this Act. Texas Civil 
Statutes, Article 8851 is affected by this new section. 

sec.372.1. Provision of Services.
(a)-(b) (No Change) 
(c) Occupational Therapy Plan of Care Development 
<nl>(1)<ol> <nl>The occupational therapy plan of care must be developed by an 
OTR or LOT. <ol>
<nl>(2)<ol> [1] An occupational therapy plan of care must be based on an 
occupational therapy evaluation. 
<nl>3<ol> [2] An occupational therapy plan of care may be integrated into an 
interdisciplinary plan of care, but occupational therapy goals or objectives 
must be easily identifiable in the plan of care.
<nl>4<ol> [3] Only an OTR or LOT may change an occupational therapy plan of 
care. 
(d) (No Change) 
(e) Discharge 
(1) An OTR or LOT has authority to discharge patients from occupational therapy 
services. 
(2) The occupational therapy discharge summary must be completed by an OTR or 
LOT. [A COTA or LOTA may assist in the discharge.
<nl>(A)<ol> <nl>The OTR or LOT shall discharge a patient when the patient or 
client has achieved predetermined goals; has achieved maximum benefit from OT 
services; or when other circumstances warrant discontinuation of occupational 
therapy services. <ol>
<nl>(B)<ol> <nl> The OTR or LOT, with input from the COTA or LOTA where 
applicable, shall prepare and implement a discharge plan that is consistent with 
occupational therapy goals, individual goals, interdisciplinary team goals, 
family goals, and expected outcomes. <ol>
<nl>(C)<ol> <nl>The OTR or LOT shall document the changes between the initial 
and current states of functional ability and deficit in performance areas, 
performance components, and performance contexts. A COTA or LOTA may assist in 
the discharge. <ol>
<nl>(D)<ol> <nl> An OTR or LOT shall document recommendations for follow-up or 
reevaluation when applicable. <ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801416
John P. Maline
Executive Director
Texas Board of Occupational Therapy Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 305-6900

CHAPTER 373.Supervision
40 TAC sec.373.1
The Texas Board of Occupational Therapy Examiners proposes amended, 373.1, 
concerning Supervision. This amended section will strengthen supervisory 
requirements and reduce delegation to Occupational Therapy Assistants. Licensees 
must have more interaction with the patient if tasks are delegated to 
Occupational Therapy Assistants or aides or technicians. 
John P. Maline, Executive Director of the Executive Council of Physical Therapy 
and Occupational Therapy Examiners, has determined that for the first five-year 
period the rule is in effect there will be no effect on state/local government. 
Mr. Maline also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be stronger supervision of persons delivering occupational therapy, 
resulting in better, more effective and appropriate services. There will be no 
effect on small business and no anticipated economic cost to persons having to 
comply. 
Comments on the proposed rule may be submitted to Alicia Dimmick Essary, OT 
Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 
2-510, Austin, Texas 78701-3942. 
The amended section is proposed under the Occupational Therapy Practice Act, 
Texas Civil Statutes, Article 8851, which provides the Texas Board of 
Occupational Therapy Examiners with the authority to adopt rules consistent with 
this Act to carry out its duties in administering this Act. Texas Civil 
Statutes, Article 8851 is affected by this new section. 

sec.373.1. Supervision 
(a) (No Change) 
(b) Supervision of COTAs. 
(1) The OTR or LOT shall delegate responsibilities to the COTA or LOTA that are 
within the scope of his or her training. 
(2) A COTA or LOTA shall provide occupational therapy services only under the 
general supervision of a licensed OTR or LOT. (See Chapter 362 of this title 
(relating to Definitions)) 
(A) A minimum of eight hours of supervision per month for full time COTAs or 
LOTAs must be documented on an "Occupational Therapy Supervision Log" prescribed 
by the board. COTAs and LOTAs employed part time shall prorate the required 
supervision. 
(i) The "Occupational Therapy Supervision Log" must be kept by the COTA or LOTA 
and a copy of this form must be maintained by the facility where the COTA or 
LOTA provides services. One "Occupational Therapy Supervision Log" must be 
completed for each separate employer. 
(ii) The "Occupational Therapy Supervision Log" must be submitted to TBOTE with 
the COTA's or LOTA's renewal application. 
(B) The manner of supervision shall depend on the treatment setting, 
patient/client caseload, and the competency of the COTA or LOTA as determined by 
the supervising OTR or LOT. 
(C) The supervising OTR or LOT need not be physically present or on the premises 
at all times. 
(3) [A COTA or LOTA may initiate and perform the screening process and collect 
information for the OTR's or LOT's review. The OTR or LOT is responsible for 
determining if intervention is needed and if a physician's referral is required 
for evaluation and/or occupational therapy intervention.] <nl>A COTA or LOTA may 
initiate and perform the screening process and collect information for the OTR's 
or LOT's review. Only the OTR or LOT may determine if evaluation is needed and 
if a physician referral is required.<ol> 
[(4) An OTR or LOT is responsible for completing the patient's 
evaluation/assessment. The supervising OTR or LOT may delegate any evaluative 
task to a COTA or LOTA that the OTR or LOT and COTA or LOTA agree is within the 
competency level of that COTA or LOTA.]
<nl>(4)<ol> <nl>An OTR or LOT is responsible for the patient's 
evaluation/assessment. The supervising OTR or LOT may delegate to a COTA or LOTA 
the collection of data or information for the evaluation. <ol>
(A) The OTR or LOT and COTA or LOTA must agree that the information collection 
tasks delegated are within the competency level of that COTA or LOTA. 
(B) The OTR or LOT is responsible for the accuracy of evaluative information 
collected by the COTA or LOTA. 
(C) The OTR or LOT must have face-to-face interaction with the patient or client 
during the evaluation process. 
(5) [An OTR or LOT is responsible for developing and modifying the patient's 
treatment plan. The treatment plan must include the following components: goals, 
interventions/modalities, frequency, and duration.] <nl>Only an OTR or LOT may 
develop or modify the patient's treatment plan. The treatment plan must include 
the following components: goals, interventions/modalities, frequency, and 
duration. <ol> 
[(6) An OTR or LOT assumes responsibility for the patient's discharge summary. 
The supervising OTR or LOT may delegate any discharge-related task to a COTA or 
LOTA that the OTR or LOT and COTA or LOTA agree is within the competency level 
of that COTA or LOTA.]
<nl>(6)<ol> [(7)] It is the responsibility of the OTR or LOT and the COTA or 
LOTA to ensure that all documentation prepared by the COTA or LOTA which becomes 
part of the patient's/client's permanent record is co-signed by the supervising 
OTR or LOT. Occupational Therapy notes must be initialed by the OTR or LOT and 
signed at the bottom of each page.
<nl>(7)<ol> [(8)] These rules shall not preclude the COTA or LOTA from 
responding to emergency situations in the patient's condition which require 
immediate action. 
(c) Supervision of an OT Aide or OT Orderly. 
(1) When an OTR, LOT, COTA and/or LOTA delegates OT tasks to an aide or orderly, 
the OTR, LOT, COTA and/or LOTA is responsible for the aide's actions during 
patient contact on the delegated tasks. The licensee is responsible for ensuring 
that the aide is adequately trained in the tasks delegated. 
<nl>(2)<ol> <nl> The OTR, LOT, COTA or LOTA must interact with the patient 
regarding the patient's condition, progress and/or achievement of goals during 
each treatment session. <ol>
<nl>(3)<ol> [(2)]An OTR, LOT, COTA and/or LOTA using OT Aide or OT Orderly 
personnel to assist with the provision of occupational therapy services must 
provide close personal supervision in order to protect the health and welfare of 
the consumer. (See Chapter 362 of this title (relating to Definitions)) 
<nl>(4)<ol> [(3)] Delegation of tasks to OT Aides or OT Orderlies. 
(A) The primary function of an OT Aide or OT Orderly functioning in an 
occupational therapy setting is to perform designated routine tasks related to 
the operation of an occupational therapy service. An OTR, LOT, COTA and/or LOTA 
may delegate to an OT Aide or OT Orderly only specific tasks which are not 
evaluative or recommending in nature, and only after insuring that the OT Aide 
or OT Orderly has been properly trained for the performance of the tasks. Such 
tasks include, but are not limited to: 
(i) routine department maintenance; 
(ii) transportation of patients/clients; 
(iii) preparation or setting up of treatment equipment and work area; 
(iv) assisting patients/clients with their personal needs during treatment; 
(v) assisting in the construction of adaptive equipment and splints; 
(vi) clerical, secretarial, administrative activities; 
(vii) carrying out a predetermined segment or task in the patient's care. 
(B) The OTR, LOT, COTA and/or LOTA shall not delegate to an OT Aide or OT 
Orderly: 
(i) performance of occupational therapy evaluative procedures;
(ii) initiation, planning, adjustment, modification, or performance of 
occupational therapy procedures requiring the skills or judgment of an OTR, LOT, 
COTA or LOTA; 
(iii) making occupational therapy entries directly in patients' or clients' 
official records; 
(iv) acting on behalf of the occupational therapist in any matter related to 
occupational therapy which requires decision making or professional judgment. 
(d) (No Change) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801417
John P. Maline
Executive Director
Texas Board of Occupational Therapy Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 305-6900

TITLE 43. TRANSPORTATION
PART I. Texas Department of Transportation
CHAPTER 17.Vehicle Titles and Registration
SUBCHAPTER B.Motor Vehicle Registration
43 TAC sec.sec.17.21, 17.23
The Texas Department of Transportation proposes amendments to sec.17.21 and 
sec.17.23, concerning temporary registration permits. The amendments are 
necessary to include provisions for exemption from temporary permits for foreign 
commercial vehicles operating in the border commercial zone. 
Senate Bill 370, 75th Legislature, 1997 added Texas Civil Statutes, Article 
6675c-2 to provide that a law or agreement of less than statewide application 
that is adopted by an agency or political subdivision of this state that 
regulates motor carriers or commercial motor vehicles or the operation of those 
carriers or vehicles in the transportation of cargo across the border or within 
an area adjacent to the border by foreign commercial motor vehicles has no 
effect unless the law or agreement applies uniformly to an entire border 
commercial zone and only in a border commercial zone. 
Texas Civil Statutes, Article 6675c-2 provides that it supersedes that portion 
of any paired city, paired state, or similar understanding governing foreign 
commercial motor vehicles or motor carriers entered into under sec.502.054, 
Transportation Code, or any other law, and provides the boundaries of a border 
commercial zone may be modified or established only as provided by federal law. 
Article 6675c-2 also provides for the exemption of a foreign commercial motor 
vehicle from registration if it spends only a short period of time in the border 
commercial zone. 
Section 17.21 is amended to provide a definition for border commercial zone and 
department. 
Section 17.23(g) is amended to provide that Texas Civil Statutes, Article 6675-c 
applies to agreements with other jurisdictions. Section 17.23 is further amended 
by adding subsection (h) to provide criteria for an exemption from the display 
of a temporary registration permit for foreign commercial vehicles operating in 
the border commercial zone if time in the border commercial zone is not more 
than 24 hours, or not more than 48 hours if the vehicle is unable to leave this 
state within 24 hours because of circumstances beyond the control of the motor 
carrier operating the vehicle, and all financial requirements are satisfied. The 
vehicle must also be registered by the law of another state or country as 
evidenced by a valid metal license plate, and the country in which the person 
owns or controls the vehicle must provide a reciprocal exemption for commercial 
motor vehicles owned or controlled by residents of Texas.
Frank J. Smith, Director, Budget and Finance Division, has determined that for 
the first five-year period the amendments are in effect, there will be no fiscal 
implications for the state or local government as a result of enforcing or 
administering the amendments. There will be no economic costs to individuals who 
are required to comply with the sections as proposed.
Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified 
that there will be no significant impact on local economies or overall 
employment as a result of enforcing or administering the proposed amendments. 
Mr. Dike also has determined that for each year of the first five years the 
amendments are in effect, the public benefit anticipated as a result of 
implementing the amendments will be to clarify the boundaries of the border 
commercial zones. There will be no effect on small businesses. 
Written comments on the proposal may be submitted to Jerry L. Dike, Director, 
Vehicle Titles and Registration, Texas Department of Transportation, 125 East 
11th Street, Austin, Texas 78701-2483. The deadline for receipt of written 
comments will be 5:00 p.m. on March 16, 1998. 
The amended sections are proposed under Transportation Code, sec.201.101, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically Texas Civil Statutes, Article 6675c-2, which authorizes the 
department to carry our provisions of those laws governing the issuance of motor 
vehicle registration.
No statutes, articles, or codes are affected by the proposed amendments.

sec.17.21. Definitions.
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
<nl>Border commercial zone<ol><nl>- A commercial zone established under Title 
49, C.F.R., Part 372 which is contiguous to the border with Mexico. <ol>
<nl>Department<ol><nl>- The Texas Department of Transportation.<ol>

sec.17.23. Temporary Registration Permits. 
(a)-(f) (No change).
(g) Agreements with other jurisdictions. In accordance with Transportation Code, 
sec.502.054 and <nl>Texas Civil Statutes, Article 6675c-2<ol>, the executive 
director of the department may enter into a written agreement with an authorized 
officer of a state, province, territory, or possession of a foreign country to 
provide for the exemption from payment of registration fees by nonresidents if 
residents of this state are granted reciprocal exemptions. The executive 
director may enter into such agreement only upon: 
(1) the approval of the governor; and 
(2) making a determination that the economic benefits to the state outweigh all 
other factors considered. 
<nl>(h)<ol> <nl>Exemptions. A foreign commercial vehicle operating in accordance 
with Texas Civil Statutes, Article 6675c-2 is exempt from the display of a 
temporary registration permit if: <ol>
<nl>(1)<ol> <nl>the vehicle is engaged solely in the transportation of cargo 
across the border into or from a border commercial zone; <ol>
<nl>(2)<ol> <nl>for each load of cargo transported the vehicle remains in this 
state for: <ol>
<nl>(A)<ol> <nl> not more than 24 hours; or <ol>
<nl>(B)<ol> <nl> not more than 48 hours, if: <ol>
<nl>(i)<ol> <nl> the vehicle is unable to leave this state within 24 hours 
because of circumstances beyond the control of the motor carrier operating the 
vehicle; and <ol>
<nl>(ii)<ol> <nl> all financial responsibility requirements applying to this 
vehicle are satisfied; <ol>
<nl>(C)<ol> <nl> the vehicle is registered and licensed as requested by the law 
of another state or country as evidenced by a valid metal license plate attached 
to the front or rear exterior of the vehicle; and <ol>
<nl>(D)<ol> <nl> the country in which the person who owns or controls the 
vehicle is domiciled or is a citizen, provides a reciprocal exemption for 
commercial motor vehicles owned or controlled by residents of Texas. <ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801427
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-8630

43 TAC sec.17.24
The Texas Department of Transportation proposes amendments to sec.17.24, 
concerning disabled person license plates and placards. 
House Bills 580 and 685, 75th Legislature, 1997, amended Transportation Code, 
sec.502.024 and sec.681.002. House Bill 580 amends the requirements to obtain 
disabled person identification placards and also requires a hologram to be on 
each disabled person identification placard. House Bill 685 allows for an 
applicant to obtain more than one set of disabled person license plates for a 
motorcycle, passenger car, or light truck that is equipped with special 
equipment that will allow a person who has lost the use of one or both legs to 
operate the vehicle.
The amendments to sec.17.24 revise citations to reflect recodification into the 
Transportation Code, and require that windshield identification placards must 
contain a hologram and applicant's driver's license number or the number of a 
personal identification card issued to the applicant under Chapter 521. The 
amendments allow an applicant who is a non-resident serving in the United States 
Military on a military institution in Texas to use a current out-of-state 
driver's license for the application. In order to receive a disabled plate or 
insignia, the application must be: signed in the presence of a notary by a 
physician either licensed to practice medicine in this state or licensed by the 
United States Military if the physician practices medicine on a military 
installation in this state; or in the form of a written prescription. Both 
statements must include a certification as to whether the disability is 
temporary or permanent and the disabled person's name. 
The amendments delete the acceptance of documentation from the Texas 
Rehabilitation Commission, the Texas Commission for the Blind, and Texas 
Handicap Association, and by sworn written statement. Additional sets of license 
plates may be issued for each vehicle that is specially equipped to allow 
operation by an operator who has lost the use of one or both legs. 
The amendments: revise the expiration period from five years to four years; 
require that in order to renew a placard, the applicant must show an expired 
placard, or a receipt showing that a disabled person placard was previously 
issued; and delete the requirement that disabled plates must be renewed in the 
county in which the owner resides. The section requires the owner to present the 
current year's license receipt instead of the previous year's in order to 
replace a disabled person license plate, and provides if the county cannot 
verify that the disabled person license plates were issued to the owner, the 
owner must refile an initial application. 
It clarifies that a disabled person is not exempt from payment of penalties and 
fees if the vehicle is parked within a municipal airport. The section allows a 
person from whom a placard was seized by a law enforcement officer under 
Transportation Code, sec.681.011 to request a hearing in accordance with 
sec.sec.1.21-1.61 of this title (relating to Contested Case Procedure) to 
determine if the revocation should continue or if the placard should be returned 
and the revocation rescinded. 
Frank J. Smith, Director, Budget and Finance Division, has determined that for 
the first five years the amended section is in effect, there will be fiscal 
implications to the state as a result of enforcing or administering this 
section. The estimated increase in cost to the state is $23,294 per year for 
fiscal years 1998 - 2002. There will be no fiscal implication to local 
government as a result of enforcing or administering this section. There will be 
economic costs to individuals who are required to comply with the requirements 
of the amendments if they seek a hearing for revocation of a disabled plate or 
placard. The cost of a revocation hearing cannot be determined because it 
depends on the circumstances of the revocation, the location of the revocation, 
and the length of the hearing. 
Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified 
that there will be no significant impact on local economies or overall 
employment as a result of enforcing or administering the proposed amendments.
Mr. Dike has also determined that for each year of the first five years the 
amended section is in effect the public benefits anticipated as a result of 
administering the section will be better enforcement and issuance procedures of 
disabled person plates and placards. There will be no effect on small 
businesses.
Written comments on the proposed amendments may be submitted to Mr. Jerry Dike, 
Director of Vehicle Titles and Registration Division, Texas Department of 
Transportation, Dewitt C. Greer Building, 125 East 11th Street, Austin, Texas 
78701-2483. The deadline for receipt of written comments will be 5 p.m. on March 
16, 1998. 
The amendments are proposed under Transportation Code, sec.201.101, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically Transportation Code, Sections sec.502.253 and sec.681.002 
which provide the department with the authority to issue disabled persons 
identification placards and license plates. 
The amendments do not affect other statutes, articles, or codes. 

sec.17.24. Disabled Person License Plates and Identification Placards. 
(a) Purpose. <nl>Transportation Code, Chapters 502 and 681 <ol>, [Texas Civil 
Statutes, Article 6675a-5e.1], charges the department with the responsibility 
for issuing specially-designed license plates and identification placards for 
permanently and temporarily disabled persons. In order for the department to 
efficiently and effectively perform these duties, this section prescribes the 
policies and procedures for the application, issuance, and renewal of disabled 
person license plates and placards.
(b) Issuance. 
(1) Disabled person license plates. 
(A) Vehicle. The department will issue specially designed license plates to 
permanently disabled persons or their transporters in lieu of regular passenger 
license plates, if the passenger vehicle, motorcycle, or light commercial 
vehicle: 
(i) has a manufacturer's rated carrying capacity of one ton or less; 
(ii) is used for non-commercial purposes; and 
(iii) is regularly operated by, or for the transportation of permanently 
disabled persons. 
(B) Identifying insignia. Disabled person license plates will include the 
international symbol of access. The department will issue disabled person 
insignia on those special category license plates that can accommodate the 
identifying insignia, and which are issued in accordance with sec.17.28 of this 
title (relating to Special Category License Plates, Symbols and Tabs).
(C) License plate number. Disabled person license plates will bear a license 
plate number assigned by the department, or a personalized license plate number 
issued in accordance with sec.17.28 of this title (relating to Special Category 
License Plates, Symbols and Tabs). 
(2) Windshield identification placards. The department will issue removable 
windshield identification placards to temporarily or permanently disabled 
persons, and the transporters of permanently disabled persons. 
(A) Location. A person who has been issued a windshield identification placard 
shall suspend the placard from a vehicle's rearview mirror when the vehicle is 
parked in a disabled person parking space, or display the placard on the center 
portion of the dashboard if such vehicle does not have a rearview mirror. 
(B) Identifying insignia. Windshield identification placards will include the 
following information: 
(i) the international symbol of access; 
(ii) an identification number; 
(iii) the seal or other identification of the department; [and] 
(iv) date of expiration<nl>; <ol>
<nl>(v)<ol> <nl> the applicant's driver's license number or the number of a 
personal identification card issued to the applicant under Transportation Code, 
Chapter 521; and <ol>
<nl>(vi)<ol> <nl> a hologram designed by the department. <ol>
(c) Initial application. 
(1) Place of application. The following persons may file an application for 
disabled person license plates or identification placards with the county tax 
assessor-collector in the county in which the applicant resides: 
(A) the owner of a registered vehicle that is regularly operated by or for the 
transportation of a disabled person; and 
(B) a disabled person who is not a vehicle owner. 
(2) Application form. Such application must be made on a form prescribed by the 
director and shall, at a minimum, require the name, address, and signature of 
the disabled person, <nl>and: <ol>
<nl>(A)<ol> <nl>the applicant's driver's license number or the number of a 
personal identification card issued to the applicant under Chapter 521; or <ol>
<nl>(B)<ol> <nl> an out-of-state current driver's license issued to a non-
resident individual serving in the United States military at a military 
installation in this state <ol>[excepting those organizations described in 
paragraph (4) of this subsection]. 
(3) Accompanying documentation. 
(A) Unless otherwise exempted by law or this section, an initial application for 
disabled person license plates and an identification placard must be accompanied 
by evidence that the operator or regularly transported person is disabled. 
<nl>(B)<ol> Such evidence of disability <nl>must: <ol>
<nl>(i)<ol> <nl>contain a certification as to whether the disability is 
temporary or permanent and the disabled person's name; and<ol>
<nl>(ii)<ol> <nl> be signed by a physician who is licensed to practice medicine 
in Texas or by the United States Military and practicing medicine on a military 
installation in Texas. <ol>
<nl>(C)<ol> <nl> The evidence must be in the form of:<ol> [includes, but is not 
limited to:] 
<nl>(i)<ol> [(A)] a disability statement, as it appears on the application for 
disabled person license plates or identification placards, which has been 
correctly completed <nl>and signed in the presence of a notary; or <ol>
<nl>(ii)<ol> <nl> a written prescription.<ol> [or by a licensed optometrist if 
the applicant is legally blind;]
[(B) certification from the Texas Rehabilitation Commission or the Texas 
Commission for the Blind on the letterhead of the agency;] 
[(C) certification from the Texas Handicap Association for its members; or] 
[(D) a sworn affidavit executed by an amputee of a limb, hand, or foot, or a 
disabled person confined to a wheelchair, and the county tax assessor-collector, 
or his or her designee, attesting to the applicant's disability.] 
(4) Additional requirements. Applications for disabled person license plates and 
identification placards shall be accompanied by any fees or additional 
documentation as required by law. 
(5) Exemptions from accompanying documentation. The department will issue 
disabled person identification placards to an organization that regularly 
transports disabled persons in vehicles it owns or controls if such organization 
is prohibited by law from disclosing the identities of their clients. In such 
cases, the application may be made in the name of the organization. In addition, 
accompanying documentation described in paragraph (2) of this subsection will 
not be required. Such organizations shall present an "Exempt" Texas Vehicle 
Registration Receipt issued in accordance with sec.17.30 of this title (relating 
to Motor Vehicle Registration) for each disabled person identification placard 
requested. 
(6) Limitations. 
(A) The department may issue the following number of disabled license plates and 
placards to applicants who are permanently disabled: 
(i) one set of disabled person license plates and one permanently disabled 
person identification placard; [or] 
(ii) no more than two permanently disabled person identification placards<nl>; 
or <ol>
<nl>(iii)<ol> <nl>additional sets of license plates for each vehicle that is 
specially equipped to allow operation by an operator who has lost the use of one 
or both legs. <ol>
(B) The department will issue no more than two temporarily disabled person 
identification placards to those with temporary disabilities. Disabled person 
license plates are not available to those with temporary disabilities.
(d) Renewal. 
(1) License plates. Disabled person license plates are valid for a period of 12 
months from the date of issuance, and are renewable as specified in sec.17.30(d) 
of this title (relating to Motor Vehicle Registration).
(2) Identification placards. Permanently disabled person identification placards 
are valid for a period of <nl>four<ol> [five] years from the month of issuance.
(A) Place of renewal application. The applicant shall apply to the tax assessor-
collector of the county in which the owner resides for disabled person 
identification placard renewal, prior to the expiration of the identification 
placard. 
(B) Accompanying documentation. In order to renew a permanently disabled person 
identification placard, an applicant shall present a copy of the previous 
identification placard application<nl>, expired placard, or a receipt showing 
that a disabled person placard was previously issued to the applicant. If<ol> 
[or, if] such previous application<nl>, placard, or receipt<ol> is not 
available, the applicant shall reapply as described in subsection (c) of this 
section. 
(3) Temporarily disabled person identification placards. Temporarily disabled 
person identification placards are valid for six months from the month of 
issuance or until the termination of the applicant's disability, whichever 
occurs first. 
(A) Termination of disability. If a person's disability ends prior to the 
expiration of the identification placard, the placard shall be destroyed. 
(B) Renewal. If a person's temporary disability extends for more than the six-
month period for which the placard was issued, such person must reapply for a 
new identification placard as described in subsection (c) of this section. 
(e) Replacement. 
(1) License plates. If disabled person license plates are lost, stolen, or 
mutilated, the owner may obtain replacement license plates by applying with the 
county tax assessor-collector [of the county in which the owner resides]. 
(A) Accompanying documentation. In order to replace permanently disabled person 
license plates, the owner shall present the <nl>current<ol> [previous] year's 
registration receipt and personal identification acceptable to the tax assessor-
collector. 
(B) Absence of accompanying documentation. If the <nl>current <ol> [previous] 
year's registration receipt is not available <nl> and the county cannot verify 
that the disabled person license plates were issued to the owner<ol>, then the 
owner shall reapply in accordance with subsection (c) of this section. 
(2) Disabled person identification placards. If a disabled person identification 
placard becomes lost, stolen, or mutilated, the owner may obtain a new 
identification placard in accordance with subsection (c) of this section. 
(f) Transfer of disabled person license plates and identification placards. 
(1) License plates. 
(A) Transfer between persons. Disabled person license plates are non-
transferable between persons. An owner who sells or trades a vehicle to which 
disabled person license plates have been issued shall remove the disabled person 
license plates from the vehicle. The owner shall return the license plates to 
the department, and obtain appropriate replacement license plates to place upon 
the vehicle prior to any transfer of ownership. 
(B) Transfer between vehicles. Disabled person license plates are non-
transferable between vehicles. 
(2) Identification placards. 
(A) Transfer between vehicles. Disabled person identification placards <nl>may 
be displayed in any vehicle in which the disabled person drives or is a 
passenger<ol> [are transferable to any vehicle in where the qualifying disabled 
person is either a driver or a passenger].
(B) Transfer between persons. Disabled person identification placards are non-
transferable between persons. 
(g) Refueling and parking privileges. 
(1) Refueling services. In accordance with Texas Civil Statutes, Article 8613 
the department will provide a notice to an owner of a vehicle displaying 
disabled person license plates or an identification placard setting forth the 
provisions of the Refueling Services to Disabled Person Act which requires a 
facility that offers motor vehicle fuel for sale to the public to limit the 
charge to a disabled driver to the self-service price. 
(2) Parking privileges. The operator of a vehicle displaying disabled person 
license plates or an identification placard is granted the following parking 
privileges under <nl>Transportation Code, sec.681.006 <ol> [Texas Civil 
Statutes, Article 6675a-5e.1]. 
(A) Any vehicle upon which disabled person license plates or a disabled person 
placard is displayed, when being operated by or for the transportation of a 
disabled person, shall be allowed to park for unlimited periods in any parking 
space or parking area designated specifically for the physically handicapped. 
(B) The owner of a vehicle on which disabled person license plates or a disabled 
person identification placard is displayed is exempt from the payment of fees or 
penalties imposed by a governmental authority for parking at a meter or in a 
space with a limitation on the length of time for parking, unless the vehicle is 
parked at a place or time that parking is prohibited, or unless the vehicle was 
not parking at the time by or for the transportation of a disabled person<nl>. 
This<ol> [; this] exemption does not apply to fees or penalties imposed by 
a<nl>:<ol>
<nl>(i)<ol> branch of the United States government<nl>; or<ol> 
<nl>(ii)<ol> <nl> governmental unit for parking within the boundaries of a 
municipal airport. <ol>
<nl>(h)<ol> <nl> Seizure and revocation of placard. A person from whom a placard 
was seized by a law enforcement officer under Transportation Code, sec.681.011 
may request a hearing in accordance with sec.sec.1.21-1.61 of this title 
(relating to Contested Case Procedure) to determine if the revocation should 
continue or if the placard should be returned to the person and the revocation 
rescinded. <ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801428
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-8630

43 TAC sec.17.50
The Texas Department of Transportation proposes amendments to sec.17.50, 
concerning exempt and alias vehicle registration. 
Senate Bill 557, 75th Legislature, 1997, amended Transportation Code, 
sec.502.201 to require the department to provide by rule for the issuance of 
specially designated license plates for vehicles that are exempt from 
registration fees. Senate Bill 557, also amended Transportation Code, 
sec.502.2015 to provide that when an exempt agency applies for exempt license 
plates, the agency's name may appear in an emblem that is at least 100 square 
inches in size instead of 2 inches in height on the vehicle, and in a color 
different from the body of the vehicle so that it is clearly legible from a 
distance of 100 feet. Senate Bill 557 requires that an agency provide a copy of 
the commissioner court order or municipal ordinance exempting county or city 
vehicles from the inscription requirements under Transportation Code, 
sec.721.003 and sec.721.005 in order to receive exempt license plates without 
the word "exempt." Section 17.50 is amended to allow an exempt agency's 
identification to appear by an emblem, providing the emblem is 100 inches square 
and easily seen from a distance of 100 feet, and require that agencies applying 
for exempt license plates for vehicles without the inscription must provide a 
copy of the order or ordinance as provided by Transportation Code, sec.721.003 
and sec.721.005. 
Frank J. Smith, Director, Budget and Finance, has determined that for the first 
five years the amended section is in effect, there will be no fiscal 
implications for the state or local government as a result of enforcing or 
administering the section. There will be no economic costs to individuals who 
are required to comply with the requirements of the section.
Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified 
that there will be no significant impact on local economies or overall 
employment as a result of enforcing or administering the proposed amendments.
Mr. Dike has determined that for each year of the first five years the amended 
section is in effect the public benefits anticipated as a result of 
administering the section will be allowing an exempt agency's the option of 
using an agency emblem on the exempt vehicle instead of the name of the agency, 
and ensuring exempt license plates are issued to qualified vehicles by requiring 
a copy of the order or ordinance for those vehicles issued in accordance with 
Transportation Code, sec.721.005. There will be no effect on small businessess.
Written comments on the proposed amendments may be submitted to Mr. Jerry L. 
Dike, Director, Vehicle Titles and Registration Division, Texas Department of 
Transportation, Dewitt C. Greer Building, 125 East 11th Street, Austin, Texas 
78701-2483. The deadline for receipt of written comments will be 5:00 p.m. on 
March 16, 1998. 
The amendments are proposed under Transportation Code, sec.201.101 which 
provides the Texas Department of Transportation the authority to establish rules 
for the issuance of exempt vehicle registration; and more specifically 
Transportation Code, sec.502.201 which requires insignia or lettering on an 
exempt agency vehicles which receive plates with the word "exempt," and 
Transportation Code, sec.502.2015 which allows the issuance of plates without 
the word "exempt" if the requirements of Transportation Code sec.721.003 and 
sec.721.005 are met. 
The amendments do not affect other statutes, articles, or codes. 

sec.17.50. Exempt and Alias Vehicle Registration.
(a) Exempt plate registration. 
(1) Issuance. Pursuant to Transportation Code, sec.502.202, a vehicle owned by 
and used exclusively in the service of a governmental agency, used exclusively 
for public school transportation services, used for fire fighting or by a 
volunteer fire department, or used in volunteer county marine law enforcement is 
exempt from payment of a registration fee, and the department will issue exempt 
plates to those vehicles 
(2) Application for exempt registration. 
(A) Application. The application for exempt plates shall be made on a form 
prescribed by the department, and shall contain the following information: 
(i) vehicle description; 
(ii) name of the exempt agency; 
(iii) an affidavit executed by an authorized person stating that the vehicle is 
owned or under the control of and will be operated by the exempt agency; and 
(iv) a certification that each vehicle listed on the application has the name of 
the exempt agency printed on each side of the vehicle in letters that are at 
least two inches high <nl>or in an emblem that is at least 100 square inches in 
size<ol>, and of a color sufficiently different from the body of the vehicle as 
to be clearly legible from a distance of 100 feet.
(B) Emergency Medical Service Vehicle. 
(i) Exempt registration may be issued for a vehicle which is owned or leased by 
a non-profit emergency medical service provider; a municipality, county, or 
combination of both; or a non-profit emergency medical service provider chief or 
supervisor in accordance with Transportation Code sec.502.204.
(ii) The application for exempt registration must contain the vehicle 
description, the name of the emergency medical service provider, and a statement 
signed by an officer of the emergency medical service provider stating that the 
vehicle is used exclusively as an emergency response vehicle and qualifies for 
registration under Transportation Code, sec.502.204. 
(iii) A copy of an emergency medical service provider license issued by the 
Texas Board of Health must accompany the application. 
(C) Fire fighting vehicle. The application for exempt registration of a fire 
fighting vehicle owned privately or by a volunteer fire department must contain 
the vehicle description. The affidavit must be executed by the person who has 
the proper authority, and shall state either that the vehicle is privately owned 
and is designed and used exclusively for fire fighting, or that the vehicle is 
owned by a volunteer fire department and is used exclusively in the conduct of 
business of such department. 
(D) Disabled insignia. The application for disabled person registration insignia 
for a vehicle used by an exempt agency to regularly transport disabled persons 
may be used to obtain a specially designed disabled person placard in accordance 
with sec.17.24 of this title, (relating to Disabled Person License Plates and 
Identification Placards). 
(3) Exception. If the applicant is a law enforcement agency or is exempt from 
the inscription requirements under Transportation Code, sec.721.003 and 
sec.721.005, and the vehicle is not registered under subsection (b) of this 
section, then the vehicle may display license plates which are not marked with 
the word "exempt," and the applicant must present a certification that each 
vehicle listed on the application will be dedicated to law enforcement 
activities or that the applicant is exempt from inscription requirements under 
Transportation Code, sec.721.003 and sec.721.005. <nl> If a vehicle is exempt 
from inscription requirements under Transportation Code, sec.721.005, then the 
applicant must provide a copy of the order or ordinance which exempts the 
vehicle.<ol> 
(b) Affidavit for issuance of exempt registration under an alias. 
(1) Upon receipt of an affidavit for alias exempt registration, properly 
executed by the executive administrator of an exempt agency that is a law 
enforcement agency, alias exempt registration will be issued annually by the 
department for a vehicle used in covert criminal investigations. 
(2) The affidavit for exempt registration issued under an alias for use on law 
enforcement vehicles shall be in a form prescribed by the director and must 
include the vehicle description, a sworn statement that the vehicle will be used 
in covert criminal investigations, and the signature of either the executive 
administrator or his or her designee as provided in paragraph (3) of this 
subsection. The vehicle registration insignia of any vehicles no longer used in 
covert criminal investigations will be surrendered immediately to the 
department. 
(3) The executive administrator, by annually filing an authorization with the 
director, may appoint a staff designee to execute the affidavit. Upon the 
appointment of a new executive administrator or his or her designee, a new 
authorization must be filed. 
(4) The letter of authorization must contain a sworn statement delegating the 
authority to sign the affidavit to a designee, the name of the designee, and the 
name and the signature of the executive administrator. The jurat must be signed 
by a notary public. 
(5) The affidavit for alias exempt registration must be accompanied by a 
certificate of title application as cited in sec.17.7 of this title (relating to 
Alias Certificate of Title) which identifies the information required by the 
department to create the alias record of vehicle registration and title. 
(c) Replacement of exempt registration. 
(1) If exempt registration becomes lost, stolen, or mutilated, a properly 
executed replacement affidavit for exempt license plates must be submitted to 
the department. 
(2) The application for replacement license plates must contain the vehicle 
description, original license number, and the sworn statement that the license 
plates furnished for the vehicle described have been lost, stolen, or mutilated, 
and will not be used on any other vehicle. 
(3) Any remaining plate or plates must be removed and surrendered to the 
department upon issuance of the replacements. 
(d) Title requirements. Prior to or simultaneously with the issuance of exempt 
registration, the vehicle must be titled, unless otherwise exempted by law. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801429
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-8630

CHAPTER 18.Motor Carriers
The Texas Department of Transportation proposes amendments to sec.sec.18.2, 
18.80, 18.82, 18.84, 18.88, 18.89, 18.91-18.93, the repeal of sec.18.94 and new 
sec.sec.18.94-18.96, concerning vehicle storage facilities. 
The amendments, repeal and new sections are necessary to implement the 
provisions of House Bill 1025, House Bill 2202, Senate Bill 370, sec.6.01, and 
Senate Bill 855, 75th Legislature, 1997, and to ensure the proper administration 
of laws concerning vehicle storage facility licensing. 
House Bill 1025 amended Texas Civil Statutes, Article 6687-9a to provide a 
definition of "impoundment" which includes preservation, conducting an 
inventory, storing all unsecured personal property, and obtaining motor vehicle 
registration information. The term "preservation" is deleted. 
House Bill 2202 amended Texas Civil Statutes, Article 6687-9a to: provide 
technical cleanup language to the Vehicle Storage Facility Act; amend 
definitions; and provide the department with the ability to deny, revoke, or 
suspend a vehicle storage facility license, and assess administrative penalties 
not to exceed $10,000 per violation. 
Senate Bill 370, sec.6.01, amended Texas Civil Statutes, Article 6687-9a to 
provide a procedure for sending renewal notices to vehicle storage facility 
licensees. 
Senate Bill 855, 75th Legislature, 1997, amended Texas Civil Statutes, Article 
6687-9a to provide for the disposal of abandoned vehicles in vehicle storage 
facilities. 
The amendments replace references to Texas Civil Statutes with the recodified 
citations to the Transportation Code. The amendments also replace references to 
"VSF" with "vehicle storage facility" and deletes references to "motor vehicle 
storage facilities. 
Section 18.2 is amended to define terms relevant to the motor carrier chapter.
Section 18.80 is amended by moving references to other vehicle storage facility 
laws from sec.18.91(f) to this section. 
Section 18.82 is amended by adding and clarifying terms relevant to the vehicle 
storage facility subchapter. 
Section 18.84 is amended to provide that the department will mail a license 
renewal notice to the licensee's last known address according to the records of 
the department and eliminate charges for a duplicate vehicle storage facility 
license. It also provides that the department will not issue a license if an 
applicant knowingly supplies false or incomplete information on the application, 
if in the three years preceding the date of the application, one of the 
principals in the business has been convicted of a felony or misdemeanor for 
which the maximum punishment is confinement in jail or a fine exceeding $500, or 
if the vehicle storage facility does not meet the standards for vehicle storage 
facilities. This section requires a corporation to include a copy of its 
amendment to its articles of incorporation when submitting a supplemental 
application for registration to change licensee name or address. 
Sections 18.89 and 18.92 are amended by replacing the term "administrative and 
preservation impoundment" with "notification and impoundment." 
Amended sec.18.89 clarifies that letters on a notification sign regarding 
complaints must be one inch in height, and a contrasting background. 
Amended sec.18.91 authorizes a vehicle storage facility to combine the required 
signs, provided that any combination of signs meets the respective requirements 
of each individual sign. 
Section 18.93 is amended to provide that a vehicle storage facility operator 
shall not charge for more than five days of storage fees until a notice is 
mailed or published. The operator shall charge a daily storage fee after notice. 
This section prohibits a vehicle storage facility operator from charging an 
administrative fee. 
Existing sec.18.94 is repealed and replaced with new sec.18.94 to provide a 
definition for the term "director," specify the types of sanctions the 
department may assess, including probation of a licensee whose license has been 
suspended and/or monetary penalties, and establish a procedure for investigation 
of and notice to the person charged with a violation. This section provides 
criteria to be used to determine which sanctions to impose, a procedure for 
response to the charge, and an opportunity for an administrative hearing. The 
section requires that the administrative law judge's proposal for decision be 
submitted to the director, who will determine whether a violation has occurred, 
and if, so impose the recommended penalty or other sanction; increase or 
decrease the amount of the recommended penalty or impose other sanctions. It 
provides for payment of penalty and appeal to a court with jurisdiction; 
provides that the department and the person charged may enter into a compromise 
settlement agreement; and authorizes the department to seek injunctive relief 
and civil penalties if it appears that a person is in violation of, or is 
threatening to violate, the Act, this subchapter, or an order of the department. 
New sec.18.95 provides circumstances under which the department may revoke, 
suspend, or deny a license, or place a person on probation whose license has 
been suspended, in cases of conviction for certain criminal activities or 
probation violations. This section establishes criteria the department will 
consider regarding sanctions, and provides a procedure for notification of 
licensees/applicants of any revocation, suspension, denial, or probation. It 
establishes policies and procedures regarding suspension and revocation of a 
vehicle storage facility license for failure to provide proof of insurance, and 
provides that the department will suspend the license of a vehicle storage 
facility operator upon receipt of a final order suspending license issued under 
Family Code sec.232.008. This section provides that the department may require a 
licensee to report regularly to the department on any matter that is the basis 
of probation. 
New sec.18.96 provides that no vehicle may be disposed of under Texas Civil 
Statutes, Article 6687-9a, unless the vehicle storage facility operator has 
complied with all provisions of the Act, and a vehicle storage facility operator 
shall notify the vehicle owner and all recorded lienholders of the proposed 
disposal of the vehicle in accordance with Texas Civil Statutes, Article 6687-
9a, sec.13(d). This section specifies the types of records a vehicle storage 
facility operator shall keep under its care and custody; explains how a vehicle 
storage facility operator may dispose of a vehicle through public sale; and 
clarifies how disputes over the sale, or dispersal of proceeds from the sale, of 
a vehicle are to be pursued. 
Frank Smith, Director, Budget and Finance Division, has determined that for the 
first five-year period the sections are in effect, there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the sections. There will be no economic costs to individuals who 
are required to comply with the sections as proposed. 
Lawrance R. Smith, Director, Motor Carrier Division, has certified that there 
will be no significant impact on local economies or overall employment as a 
result of enforcing or administering the proposed sections. 
Mr. Lawrance Smith has determined that for each year of the first five years the 
proposed sections are in effect, the public benefits anticipated as a result of 
enforcing the sections will be increased protection for vehicle storage facility 
customers. There will be no effect on small businesses. 
Written comments on the proposal may be submitted to Lawrence R. Smith, 
Director, Motor Carrier Division, Texas Department of Transportation, 125 E. 
11th St., Austin, Texas 78701-2483. The deadline for receipt of comments will be 
5:00 p.m. on March 16, 1998. 

SUBCHAPTER A.General Provisions
43 TAC sec.18.2
The amended sections are proposed under Transportation Code, sec.201.101, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically, Transportation Code, Chapter 643 which authorizes the 
department to carry out the provisions of those laws governing the registration 
of motor carriers, and Texas Civil Statutes, Article 6687-9a, which authorize 
the department to carry out the provisions of those laws governing the licensing 
of vehicle storage facilities. 
No statutes, articles, or codes are affected by these proposed amendments.

sec.18.2. Definitions.
The following words and terms, when used in this chapter shall have the 
following meanings, unless the context clearly indicates otherwise. 
Tow truck - A motor vehicle equipped with, or used in combination with, a 
mechanical device [, mini-trailer, or auto-trailer, and which is adapted or] 
used to tow, winch, or otherwise move another vehicle. <nl> For the purposes of 
this chapter, the following motor vehicles are not considered tow trucks:<ol> 
<nl>(A)<ol> <nl> a motor vehicle owned and used exclusively by a governmental 
entity, including a public school district;<ol>
<nl>(B)<ol> <nl> a motor vehicle towing: <ol>
<nl>(i)<ol> <nl> a race car; <ol>
<nl>(ii)<ol> <nl> a motor vehicle for exhibition; or <ol>
<nl>(iii)<ol> <nl> an antique motor vehicle; <ol>
<nl>(C)<ol> <nl> a recreational vehicle towing another vehicle; <ol>
<nl>(D)<ol> <nl> a motor vehicle used in combination with a tow bar, tow dolly, 
or other mechanical device that is not operated in the furtherance of a 
commercial enterprise; or <ol>
<nl>(E)<ol> <nl> a motor vehicle, controlled and/or operated by a farmer or 
rancher, towing a farm vehicle. <ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801430
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER G.Vehicle Storage Facilities
43 TAC 18.80, 18.82, 18.84, 18.88, 18.89, 18.91-18.93
The amended sections are proposed under Transportation Code, sec.201.101, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically, Transportation Code, Chapter 643 which authorizes the 
department to carry out the provisions of those laws governing the registration 
of motor carriers, and Texas Civil Statutes, Article 6687-9a, which authorize 
the department to carry out the provisions of those laws governing the licensing 
of vehicle storage facilities. 
No statutes, articles, or codes are affected by these proposed amendments.

sec.18.80. Purpose and Scope. 
Texas Civil Statutes, Article 6687-9a (Vehicle Storage Facility Act), provide 
that a person may not operate a vehicle storage facility unless the person holds 
a current license to operate a vehicle storage facility issued by the Texas 
Department of Transportation. In order to protect all parties from unfair, 
unreasonable and deceptive practices, this subchapter sets forth the 
department's commitment to provide procedures and policies under which vehicle 
storage facility operators and their customers may transact business. The 
sections under this subchapter describe the procedures by which a person may 
obtain a license to operate a vehicle storage facility, conditions under which a 
licensee must operate the facility, and the procedures by which the department 
will enforce this subchapter. <nl>Other laws which may affect the operations of 
a vehicle storage facility are Transportation Code, Chapters 643 and 683, 
Property Code, sec.70.003, sec.70.004, and sec.70.006, and the regulations or 
ordinances of any political subdivision of this State.<ol> 

sec.18.82. Definitions. 
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
<nl>Person <ol><nl>- An individual, corporation, organization, business trust, 
estate, trust, partnership, association, or other legal entity. <ol>
<nl>Impoundment<ol> [Preservation] <nl>- Actions performed on a stored vehicle 
which consist of the following minimum requirements:<ol>
(A) using of materials such as plastic or canvas tarpaulins to ensure the 
preservation of a stored vehicle if doors, windows, convertible tops, 
hatchbacks, sun roofs, trunks or hoods are broken or inoperative;
(B) conducting a written inventory of any unsecured personal property contained 
in a stored vehicle; 
(C) removing and storing all unsecured personal property contained in a stored 
vehicle for which safekeeping is necessary; and 
(D) obtaining motor vehicle registration information for a specific vehicle from 
the department's Vehicle Titles and Registration Division, statutory agents or 
service providers.
Vehicle - A motor vehicle subject to registration under <nl> Transportation 
Code, Chapter 501<ol> [the Certificate of Title Act, Texas Civil Statutes, 
Article 6687-1], or any other device designed to be self-propelled or 
transported on a public highway [and which is towed or transported to a vehicle 
storage facility without the owner's consent

sec.18.84. Issuance and Renewal of License. 
(a) Issuance. The department will issue a <nl>vehicle storage facility<ol> [VSF] 
license to an applicant meeting the requirements of sec.18.83 of this title 
(relating to Application for Original Vehicle Storage Facility License)<nl>, 
unless the department determines that:<ol>
<nl>(1)<ol> <nl> the applicant knowingly supplied false or incomplete 
information on the application; <ol>
<nl>(2)<ol> <nl> in the three years preceding the date of the application, the 
applicant, one of the applicant's partners, a principal or general manager of 
the applicant, or one of the applicant's officers has been convicted of a felony 
or misdemeanor for which the maximum punishment is confinement in jail or a fine 
exceeding $500; or <ol>
<nl>(3)<ol> <nl> the vehicle storage facility for which the license is sought 
does not meet the standards established by this subchapter for vehicle storage 
facilities. <ol>
(b) Transferability/assignability. <nl>Vehicle storage facility <ol> [VSF] 
licenses are non-transferable and non-assignable from a licensee to another 
person or entity. 
(c) Licensee change of name or address. Prior to the effective date of any 
change in a licensee's name or address from the name or address appearing on the 
original vehicle storage facility license application, the licensee shall file a 
supplemental application with the department. <nl> A licensee that is a 
corporation shall include a copy of the amendment to its articles of 
incorporation approved by the Texas Secretary of State along with its 
supplemental application for registration. A licensee incorporated outside the 
State of Texas shall include a copy of its amendments to its articles of 
incorporation approved by the corresponding chartering authority.<ol>
(d) Expiration. <nl>Vehicle storage facility<ol> [VSF] licenses are valid for 12 
months and expire annually on the issuance anniversary date. <nl>A licensee may 
renew its vehicle storage facility license in accordance with subsection (e) of 
this section and retain its original license number.<ol> 
[(e) Duplicate vehicle storage facility licenses. Application for a duplicate 
VSF license shall be made with the department. A $25 fee will be charged for 
issuing a duplicate license. This fee is non-refundable, and may be paid in 
accordance with sec.18.85 of this title (relating to Payment of Fees). The 
expiration date of a duplicate VSF license shall be the same as the original 
license.] 
<nl>(e)<ol> [(f)] Renewal of vehicle storage facility license. Licensees must 
apply annually, prior to license expiration, to renew the <nl>vehicle storage 
facility<ol> [VSF] operators license. 
(1) Renewal notices. The department will mail a license renewal notice <nl>to 
the licensee's last known address, according to the records of the 
department,<ol> indicating the month and year the license expires to each 
licensee approximately 45 days prior to license expiration. Failure to receive 
the notice does not relieve the licensee of the responsibility to renew the 
<nl>vehicle storage facility<ol> [VSF] license.
(2) Renewal application and fee. An application for <nl> vehicle storage 
facility<ol> [VSF] license renewal must be returned by the licensee to the Motor 
Carrier Division and shall be accompanied by the annual renewal fee of $75. The 
renewal fee is non-refundable and is payable as described in sec.18.85 of this 
title (relating to Payment of Fees). In order to avoid expiration, a renewal 
application and fee must be received by the Motor Carrier Division prior to the 
expiration date. 
(3) Expired vehicle storage facility license. An individual, partnership, or 
corporation whose <nl>vehicle storage facility<ol> [VSF] is still in business 
and whose license is not renewed must apply for a new license in accordance with 
sec.18.84 of this title (relating to License Issuance and Renewal). To avoid the 
loss of the original license number, an application must be received by the 
Motor Carrier Division within 90 days after license expiration. The application 
shall be accompanied by a fee of $100. 

sec.18.88. Documentation and Records. 
(a) Retention of written documentation. Vehicle storage facility licensees must 
maintain written documentation regarding their operations for a period of two 
years from the date such operations occurred. Written documentation shall be in 
the form of: 
(1) motor vehicle registration checks; 
(2) notification letters; 
(3) certified return receipts; 
(4) tow tickets or wrecker slips (if applicable); 
(5) bills for service; 
(6) auction receipts; 
(7) inventory (if applicable); 
(8) certificates of authority to demolish; and 
(9) any authorized document used to release a vehicle (title, affidavit of right 
of possession and control, court order, etc.).
(b) Combination documents. Provided that the document contains the minimum 
information described in subsection (c) of this section, a licensee may 
consolidate the information required into a single document in order to meet 
record retention requirements of subsection (a) of this section. Combination 
documents may consist of: 
(1) bills for service; 
(2) inventory records; 
(3) tow tickets; or 
(4) wrecker slips (if applicable). 
(c) Minimum information. Each licensee shall keep written records on each 
vehicle kept or stored at the <nl>vehicle storage facility <ol> [VSF]. These 
records shall contain: 
(1) the year, make, model, color, correct license plate number, state issuing 
the license, and correct vehicle identification number of the vehicle; 
(2) the date, time and location from which the vehicle was towed, and name of 
person who authorized the tow; 
(3) the name of the tow truck driver, the name of the company that towed the 
vehicle, and the license plate numbers of plates issued to the tow truck under 
Transportation Code, sec.502.180 and sec.502.281;
(4) the date the vehicle was released, the name of the individual to whom the 
vehicle was released, and the type of identification (Texas drivers license or 
other state or federally issued photo identification) and identification number 
provided by the individual to whom the vehicle was released; 
(5) the date of any vehicle transfer, and the address of the location to which 
it was transferred along with the name of the towing company and tow truck 
driver who made the transfer; 
(6) a copy of any certificate of title issued after the vehicle came into the 
possession of the <nl>vehicle storage facility<ol> [VSF], any certificate of 
authority to demolish, any police auction sales receipt, or any transfer 
document issued by the State of Texas for the vehicle if vehicle ownership has 
been transferred due to any action of the <nl> vehicle storage facility<ol> 
[VSF] or if the vehicle has been disposed of or demolished; and 
(7) all amounts received at the time the vehicle was released, including the 
specific nature of each charge. 
(d) Availability of documentation. All required documentation shall be made 
available by the licensee, the licensee's agent, or the licensee's employee for 
inspection and copying upon request by department personnel, or a certified law 
enforcement officer within the officer's jurisdiction, during the same hours the 
<nl>vehicle storage facility<ol> [VSF] must ensure that vehicles are available 
for release to the vehicle owner.
(e) Care and custody of records. Required records shall be kept under the care 
and custody of the licensee for at least two years from the date the vehicle was 
received. 

sec.18.89. Notice of Complaint Procedure.
Each <nl>vehicle storage facility<ol> [VSF] shall notify consumers and service 
recipients of the name, mailing address, and telephone number of the department 
for purposes of directing complaints regarding vehicle storage to the 
department. The licensee may use a legible sticker or rubber stamp to convey the 
required information. The notification shall be included on:
(1) a sign prominently displayed to the public at the place of payment, with 
<nl>letters at least one inch in height, and a contrasting background<ol> 
[specifications in accordance with sec.18.91 (d) of this title (relating to 
Facility Requirements)]; and 
(2) any bill for service. 

sec.18.91. Facility Requirements. 
(a) Enclosure and security of stored vehicles. 
(1) Fencing. If not enclosed by a five foot high fence on or before September 1, 
1985, all vehicle storage facilities shall be completely enclosed by a fence at 
least six feet high with a gate which is locked at all times when the licensee 
or an agent or employee is not at the storage lot. No two vehicle storage 
facilities may operate within the same fenced area. 
(2) Security of vehicles. 
(A) No vehicle may be stored or kept at any licensed <nl> vehicle storage 
facility<ol> [VSF] unless it is kept inside the fenced or enclosed area at all 
times. For purposes of this subsection, the term "enclosed" shall mean inside a 
building. 
(B) A vehicle accepted for storage in a <nl>vehicle storage <ol> facility must 
be secured to prevent theft of the vehicle or its contents, including but not 
limited to locking doors, closing windows and hatchbacks, and raising or 
covering convertible tops. 
(b) Surface. All [motor] vehicle storage facilities shall have an all-weather 
surface such as concrete, asphalt, black-top, stone, macadam, limestone, iron 
ore, gravel, shell, or caliche, that enables the safe and effective movement of 
stored vehicles upon all portions of the lot, both under their own power and 
under tow, at all times, regardless of prevailing weather conditions. 
(c) Illumination. All [motor] vehicle storage facilities shall maintain 
illumination levels adequate for nighttime release of vehicles. The term 
"adequate" shall mean sufficient to allow inspection of a vehicle for damage at 
the time of release. At a minimum, there must be one lighting fixture containing 
at least a 250 watt element for each 1/4 acre of storage area. 
(d) Signs. 
(1) Facility information. All [motor] vehicle storage facilities shall have a 
clearly visible and readable sign at its main entrance. Such sign shall have 
letters at least 2 inches in height, with contrasting background, shall be 
visible at 10 feet, and shall contain the following information:
(A) the registered name of the storage lot, as it appears on the <nl>vehicle 
storage facility<ol> [VSF] license; 
(B) street address; 
(C) the telephone number for the owner to contact in order to obtain release of 
the vehicle; 
(D) the facility's hours, within one hour of which vehicles will be released to 
vehicle owners; and 
(E) the storage lot's state license number preceded by the phrase "VSF License 
Number." 
(2) Per diem charges. All [motor] vehicle storage facilities shall have a sign 
setting out the per diem charge for storage and all other fees which may be 
charged by the storage lot, including <nl> notification and impoundment<ol> 
[administrative and preservation/pound] fees. This sign shall be located so it 
is clearly visible to a vehicle owner prior to paying the fees, shall have 
letters at least 1 inch in height, with a contrasting background. 
(3) Instruments accepted for release of vehicle. All [motor] vehicle storage 
facilities shall have a sign describing the instruments which may be presented 
by the vehicle owner or his/her authorized representative to obtain possession 
of the vehicle. This sign shall list all instruments as described in 
sec.18.92(a)(2) of this title (relating to Technical Requirements), and shall 
also state: "Affidavit of Right of Possession and Control Furnished Upon 
Request." This sign shall be located so it is clearly visible to a vehicle owner 
at the place of payment, have letters at least 1 inch in height with a 
contrasting background. 
<nl>(4)<ol> <nl> Combination signs. A vehicle storage facility may combine the 
signs described in sec.18.89(1) of this title (relating to Facility 
Requirements) and paragraphs (2) and (3) of this subsection, provided that the 
combination sign meets the requirements of each of the separate signs.<ol>
(e) Unregistered tow trucks. No <nl>vehicle storage facility <ol> [VSF] shall 
permit any tow truck which is not registered under <nl>Transportation Code, 
Chapter 643<ol> [Texas Civil Statutes, Article 6675c], to enter onto the grounds 
of the facility. 
[(f) Other laws, statutes, rules and regulations affecting VSF operations. Some 
other laws which may affect the operation of a VSF include: 
[(1) Transportation Code, Chapter 683; 
[(2) Texas Civil Statutes, Article 6675c;
[(3) Property Code, sec.70.003, sec.70.004, and sec.70.006; and 
[(4) any political subdivision's ordinances or regulations.] 

sec.18.92. Technical Requirements. 
(a) Release of vehicles. The licensee shall comply with the following 
requirements when releasing vehicles. 
(1) The licensee shall comply with all provisions of Texas Transportation Code, 
Chapter 685, and Texas Civil Statutes, Article 6701g-3, relating to the rights 
of the owner of a stored vehicle, including providing the name, address, and 
telephone number of the justice of the peace or magistrate from whose 
jurisdiction the vehicle was removed. 
(2) The licensee shall allow the vehicle owner or his/her authorized 
representative to obtain possession of the vehicle at any time between the hours 
listed on the facility information sign posted as described in sec.18.91(d)(1) 
of this title (relating to Facility Requirements), upon payment of all fees due, 
presentation of valid identification (Texas drivers license or other state or 
federally issued photo identification), and upon presentation of: 
(A) a notarized power-of-attorney; 
(B) a court order; 
(C) a certificate of title; 
(D) a tax collector's receipt and a vehicle registration renewal card 
accompanied by a conforming identification; 
(E) notarized proof of loss claim of theft from an insurance company to show a 
right to possession; 
(F) positive name and address information corresponding to that contained in the 
files of the department's Vehicle Titles and Registration Division; or 
(G) a department approved Affidavit of Right of Possession and Control, as 
defined in sec.18.82 of this title (relating to Definitions), which is to be 
furnished by the licensee upon request (an Affidavit of Right of Possession and 
Control is not to be used as a repossession instrument).
(3) All [motor] vehicle storage facilities shall have vehicles available for 
release 24 hours a day within one hour's notice if it accepts vehicles 24 hours 
a day. 
(4) If a <nl>vehicle storage facility<ol> [VSF] does not accept vehicles 24 
hours a day, such facility must have vehicles available for release within one 
hour between the hours of 8:00 a.m. and midnight Monday-Saturday and from 8:00 
a.m. to 5:00 p.m. on Sundays except for nationally recognized holidays. It is 
not the intent of this section to require release of vehicles after midnight, 
and refusal to release after that time, even with notice after 11:00 p.m., is 
not a violation of this section. 
(b) Notification of insurance information. Upon request by the vehicle owner or 
the vehicle owner's authorized representative, the licensee shall provide the 
name, address, and telephone number of the insurance company that is providing 
required garage keeper's legal liability insurance coverage to the facility, in 
addition to the facility's insurance policy or certificate number for purposes 
of filing a claim for loss or damage of property. The insurance information 
shall be the same as that which is on file with the department. 
(c) Publicly listed telephone number. All [motor] vehicle storage facilities 
shall have a publicly listed and operable telephone where the licensee can be 
contacted. If the telephone number is changed from the number set out in the 
vehicle storage license application, the licensee shall give the department 
written notice of the change prior to the date the new number is used. The 
notice shall include the storage lot's name, its location, its license number, 
the old telephone number, and the new telephone number.
(d) Inspection of stored vehicles. When the licensee, the licensee's agent, or 
the licensee's employee accepts a vehicle towed without the vehicle owner's 
consent, such person shall inspect the vehicle and note as an addition on the 
wrecker slip or wrecker ticket any differences from the information previously 
set out thereon, but shall not write over or deface any prior writing on the 
slip or ticket. If the license plate number or vehicle identification number on 
the wrecker ticket or wrecker slip are incorrect, the <nl>vehicle storage 
facility<ol> [VSF] shall note on its records the correct number and notify every 
previously advised person within 48 hours of noting the correct information. 
(e) Removal of parts; dismantling or demolishing of stored vehicles. Except as 
stated to the contrary in this section, no parts shall be removed from any 
vehicle, and no vehicle shall be dismantled or demolished within the storage 
area of a licensed <nl>vehicle storage facility<ol> [VSF]. Vehicles may be 
dismantled or demolished only if the storage lot has a certificate of title, 
certificate of authority to demolish, police auction sales receipt, or transfer 
document issued by the State of Texas for the vehicle being dismantled or 
demolished. 
(f) Use of stored vehicles. No stored vehicle may be utilized for personal or 
business use without the written consent of the vehicle's owner. 
(g) Reasonable storage efforts. A <nl>vehicle storage facility <ol> [VSF] 
operator shall make reasonable efforts necessary for the storage of a vehicle, 
such as locking doors, rolling up windows, and closing doors, hatchbacks, sun 
roofs, trunks, hoods, or convertible tops. Such actions are included in the 
storage fee as set forth in sec.18.93 of this title (relating to Storage 
Fees/Charges). 
(h) <nl>Impoundment<ol> [Preservation] of stored vehicles. If doors, windows, 
convertible tops, hatchbacks, sun roofs, trunks, or hoods are broken or 
inoperative, materials such as plastic or canvas tarpaulins must be used to 
ensure the preservation of the stored vehicle. A <nl>vehicle storage 
facility<ol> [VSF] operator is entitled to charge a fee for <nl>impoundment<ol> 
[preservation] if, in addition to the requirements set out in this subsection, 
the <nl>vehicle storage facility <ol> [VSF] operator, at a minimum: 
(1) conducts a written inventory of any unsecured personal property contained in 
the vehicle; 
(2) removes and stores all such property for which safekeeping is necessary, and 
specifies such removal and storage on the written inventory; and 
(3) obtains motor vehicle registration information for the vehicle from the 
department. 
(i) Repair or alteration of stored vehicles. A vehicle accepted for storage may 
not be repaired, altered, or have parts removed or replaced without the vehicle 
owner's or his authorized representative's consent. 
(j) Vehicle transfers. When a motor vehicle has been delivered to a <nl>vehicle 
storage facility<ol> [VSF], the vehicle may not be moved from that facility 
within the first 31 days of storage without the vehicle owner's authorization. 
If it becomes necessary to move the vehicle during the first 31 days of storage 
because of <nl>vehicle storage facility <ol> [VSF] capacity problems, neither 
the registered vehicle owner nor recorded lienholder(s) may be assessed an 
additional charge. The <nl> vehicle storage facility<ol> [VSF] must send notice 
in accordance with sec.18.87 of this title (relating to Notifications Regarding 
Towed Vehicles), except that the notice must be sent no less than 72 hours prior 
to moving the vehicle. If a vehicle is moved from a <nl>vehicle storage facility 
<ol> [VSF], the licensee shall: 
(1) charge only those fees otherwise permitted by sec.18.93 of this title 
(relating to Storage Fees/Charges) after the vehicle is towed to another 
location without the vehicle owner's permission; 
(2) retain records and inform the vehicle owner upon request of the location 
where the vehicle is at all times from the date on which the vehicle is 
transferred from the <nl>vehicle storage facility<ol> [VSF] until such time as 
the vehicle is recovered by the vehicle owner, or a new certificate of title, a 
certificate of authority to demolish, a police auction sales receipt, or a 
transfer document is issued by the State of Texas; and 
(3) maintain a record of the ultimate disposition of the vehicle, including the 
date and name of the person to whom the vehicle is released or a description of 
the document under which the vehicle was sold or demolished. 

sec.18.93. Storage Fees/Charges.
The fees outlined in this section have precedence over any conflicting municipal 
ordinance or charter provision. 
(1) Notification fee. 
(A) A <nl>vehicle storage facility<ol> [VSF] operator may not charge an owner 
more than $25 for notification under sec.18.87 of this title (relating to 
Notification Regarding Towed Vehicles). 
(B) If a vehicle is removed by the owner within 24 hours after the date the 
operator receives the vehicle, notification is not required under sec.18.87 of 
this title (relating to Notification Regarding Towed Vehicles).
(C) If a vehicle is removed by the owner before notification is sent, or within 
24 hours from the time the operator receives the vehicle, a notification fee may 
not be charged to the owner by the <nl>vehicle storage facility<ol> [VSF] 
operator. 
(2) Daily storage fee. A <nl>vehicle storage facility <ol> [VSF] operator may 
not charge less than $5.00 or more than $15 for each day or part of a day for 
storage of a vehicle. 
<nl>(A)<ol> A daily storage fee may be charged for a day regardless of whether 
the vehicle is stored for 24 hours of the day, except that a daily storage fee 
may not be charged for more than one day if the vehicle remains at the 
<nl>vehicle storage facility<ol> [VSF] less than 12 hours. For the purposes of 
this paragraph, a day is considered to begin and end at midnight. 
<nl>(B)<ol> <nl> A vehicle storage facility operator shall not charge for more 
than five days of storage fees until a notice, as prescribed in sec.18.87 of 
this title, is mailed or published.<ol> 
<nl>(C)<ol> <nl> A vehicle storage facility operator shall charge a daily 
storage fee after notice, as prescribed in sec.18.87 of this title, is mailed or 
published for each day or portion of a day the vehicle is in storage until the 
vehicle is removed and all accrued charges are paid. <ol>
(3) <nl>Impoundment<ol> [Preservation] fee. A <nl>vehicle storage facility<ol> 
[VSF] operator may charge an owner no more than $10 for <nl>impoundment<ol> 
[preservation] of a stored motor vehicle, if such <nl>impoundment<ol> 
[preservation] is performed in accordance with sec.18.92<nl>(h)<ol> [(g)] of 
this title (relating to Technical Requirements). If the <nl>vehicle storage 
facility<ol> [VSF] operator charges a fee for <nl>impoundment <ol> 
[preservation], the written bill for services must specify the exact services 
performed for that fee and the dates such services were performed. 
(4) Additional fees. A <nl>vehicle storage facility <ol> [VSF] operator may not 
charge any additional fees that are similar to notification <nl>or 
impoundment<ol> [, preservation, or administrative] fees. <nl>A vehicle storage 
facility operator may not charge an administrative fee.<ol> 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801431
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-8630

43 TAC sec.18.94
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Department 
of Transportation or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The repealed section is proposed under Transportation Code, sec.201.101, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically, Transportation Code, Chapter 643 which authorizes the 
department to carry out the provisions of those laws governing the registration 
of motor carriers, and Texas Civil Statutes, Article 6687-9a, which authorize 
the department to carry out the provisions of those laws governing the licensing 
of vehicle storage facilities. 
No statutes, articles, or codes are affected by this proposed repeal. 
sec.18.94. Sanctions. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801432
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-8630

43 TAC sec.sec.18.94-18.96
The new sections are proposed under Transportation Code, sec.201.101, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically, Transportation Code, Chapter 643 which authorizes the 
department to carry out the provisions of those laws governing the registration 
of motor carriers, and Texas Civil Statutes, Article 6687-9a, which authorize 
the department to carry out the provisions of those laws governing the licensing 
of vehicle storage facilities. 
No statutes, articles, or codes are affected by these proposed new sections.

sec.18.94. Sanctions. 
(a) Definition. For purposes of this section, the term "director" shall mean the 
executive director of the department or the executive director's designee not 
below the rank of division or special office director. 
(b) Types of sanctions. 
(1) The department may issue sanctions to an applicant for a license, a licensee 
or a partner of a licensee, a principal in the licensee's business, or an 
employee of the licensee, with the knowledge of the licensee who violates the 
Act, this subchapter, (including failure to meet the standards established by 
this subchapter), or an order of the department. The department may: 
(A) issue a written warning to the licensee specifying the violation; 
(B) deny, revoke, or suspend a license; 
(C) place a licensee on probation if his or her license has been suspended; or 
(D) assess an administrative penalty not to exceed $1,000 for each violation. 
(2) If a person violates sec.5 of the Act concerning licensure, the department 
may assess administrative penalties in an amount not to exceed $10,000 per 
violation, in addition to sanctions imposed under subsection (h) of this section 
or sec.17 of the Act concerning penalties and offenses. Each day a violation 
continues or occurs is a separate violation for purposes of imposing a penalty. 
(3) If a suspension is probated, the department may require the person to make 
regular reports to the department or its designee on matters that are the basis 
of the probation or limit practice to the areas licensed by the department under 
this Act. 
(c) Initiation of proceedings. 
(1) If an authorized investigator of the department determines that a violation 
has occurred, the investigator shall issue a summary to the manager, stating the 
facts on which the investigator based his or her conclusion.
(2) The manager will determine whether sanctions should be imposed based on: 
(A) the seriousness of the violation, including the nature, circumstances, 
extent, and gravity of any prohibited acts, and the hazard or potential hazard 
to the health, safety, or economic welfare of the public;
(B) the economic harm to property or the environment caused by the violation; 
(C) the history of previous violations; 
(D) the amount necessary to deter future violations; 
(E) efforts to correct the violations; and 
(F) any other matter that justice may require. 
(d) Notice. The manager shall give written notice of the violation and the 
proposed sanction to the person charged. The notice shall include:
(1) a brief summary of the alleged violations; 
(2) a statement of the proposed sanction and any accompanying conditions; and 
(3) a statement of the right of the person charged to a hearing concerning the 
violation, the sanction, and the terms of the sanction, or the amount of the 
penalty. 
(e) Response. 
(1) Not later than the 15th day after the date on which the notice is received, 
the person charged may accept the manager's proposal, including all accompanying 
conditions, or make a written request for a hearing.
(2) The person is considered to have accepted the proposal if he or she has not 
made a written request for a hearing and the person has received notice that the 
sanction is: 
(A) a written warning; 
(B) denial, revocation, or suspension of a license; or 
(C) probation. 
(f) Administrative hearing. 
(1) If the person charged fails to respond in a timely manner to the notice and 
the sanction is a monetary penalty, or if the person requests a hearing, the 
department will initiate a contested case in accordance with sec.sec.1.21-1.61 
of this title (relating to Contested Case Procedure). The department will 
provide written notice of such action to the person. 
(2) A contested case under this subsection will be governed by sec.sec.1.21-1.61 
of this title (relating to Contested Case Procedure), except that an 
administrative law judge's proposal for decision shall be submitted to the 
director. The director may determine, by order, that: 
(A) no violation has occurred; or 
(B) a violation has occurred, and 
(i) impose the penalty or other sanction recommended by the administrative 
judge; 
(ii) increase or decrease the amount of the penalty recommended by the 
administrative judge within the limits prescribed by subsection (b) of this 
section; or 
(iii) impose other sanctions. 
(g) Settlement agreements. 
(1) At any time prior to the date on which a final order is issued by the 
director under subsection (f)(2) of this section, the department and the person 
may agree to enter into a compromise settlement agreement. The agreement shall 
not constitute an admission by the person of any violation. The compromise 
settlement agreement shall be signed by the person and the director, and will 
reflect that the person consents to the assessment of a specific administrative 
penalty and/or other sanction. 
(2) Simultaneously with the filing of a compromise settlement agreement, if the 
penalty is monetary, then the alleged violator shall remit a cashier's check or 
money order to the department, payable to the "State Comptroller - Treasury 
Operations." These funds shall be held in an escrow account until agreement is 
executed by the alleged violator and the director.
(h) Injunctive relief and civil penalty. 
(1) If it appears that a person is in violation of, or is threatening to violate 
the Act, this subchapter, or an order of the department, the attorney general at 
the department's request may institute an action for injunctive relief to: 
(A) restrain the person from continuing the violation or threatening the 
violation; and 
(B) for civil penalties not to exceed $1,000 for each violation.
(2) If the department or the attorney general prevails in an action under this 
section, the department or the attorney general is entitled to recover 
reasonable attorney's fees and court costs. 

sec.18.95. Criminal Convictions, Insurance, and Child Support. 
(a) Criminal convictions. 
(1) The department may revoke, suspend, or deny a license issued under the Act, 
or place a person on probation whose license has been suspended if the 
department determines that a licensee, a partner of the licensee, a principal in 
the licensee's business, or an employee of the licensee has been finally 
convicted of a: 
(A) felony; or 
(B) misdemeanor that directly relates to a duty or responsibility of a vehicle 
storage facility operator and is punishable by: 
(i) confinement; or 
(ii) a fine exceeding $500. 
(2) The department may also, after hearing, suspend, revoke, or deny a license 
because of a person's felony probation revocation, parole revocation, or 
revocation of mandatory supervision. 
(3) In determining whether a criminal conviction directly relates to the 
operation of a vehicle storage facility, the department shall consider the: 
(A) nature and seriousness of the crime; 
(B) extent to which a license might offer an opportunity to engage in further 
criminal activity of the same type as that in which the person was previously 
involved; and 
(C) relationship of the crime to the ability, capacity, or fitness required to 
perform the duties and discharge the responsibilities of operating a vehicle 
storage facility. 
(4) In determining the present fitness of a person who has been convicted of a 
crime, the department shall also consider: 
(A) the extent and nature of the person's past criminal activity;
(B) whether or not the person was a minor at the time of the commission of the 
crime; 
(C) the amount of time that has elapsed since the person's last criminal 
activity; 
(D) the conduct and work activity of the person prior to and following the 
criminal activity; 
(E) evidence of the person's rehabilitation or rehabilitative effort while 
incarcerated or following release; and 
(F) other evidence of the person's present fitness, including letters of 
recommendation from: 
(i) prosecution, law enforcement, and correctional officers who prosecuted, 
arrested, or had custodial responsibility for the person;
(ii) the sheriff and chief of police in the community where the person resides; 
and 
(iii) any other persons in contact with the convicted person.
(G) It shall be the responsibility of the applicant, to the extent possible, to 
secure and provide the department with the recommendations of prosecution, law 
enforcement, and correctional authorities. 
(H) A person who has been convicted of criminal activity shall furnish proof, in 
such form as may be required by the department, that he or she has: 
(i) otherwise maintained a record of good conduct; and 
(ii) paid all outstanding court costs, supervision fees, fines, and restitution 
as may have been ordered in all criminal cases in which he or she has been 
convicted. 
(5) The department will provide written notice of denial, suspension, or 
revocation in accordance with sec.18.94(d) of this title (relating to 
Sanctions). The person will have the opportunity to respond and request an 
administrative hearing in accordance with sec.18.94(e) and (f) of this title. 
(b) Failure to maintain insurance. 
(1) Upon receipt of notice of termination of insurance coverage under 
sec.18.86(c) of this title (relating to Insurance Requirements), the department 
will provide written notice of the proposed suspension and revocation in 
accordance with sec.18.94(d) of this title. 
(2) If the licensee does not file proof of insurance as required by sec.18.86 of 
this title prior to the termination of its existing insurance, the division will 
suspend the licensee's license for 90 days. The division will revoke the license 
on the 91st day unless the licensee provides proof of insurance in compliance 
with sec.18.86 of this title before the effective date of revocation. If proof 
of insurance is timely provided, the department will reinstate the license. 
(3) If the suspended licensee does not provide proof of insurance under 
paragraph (2) of this subsection, the licensee must file an application as 
required by sec.18.83 of this title (relating to Application for Original 
Vehicle Storage Facility). 
(4) A final order will be issued in accordance with sec.18.94(f)(2) of this 
title. 
(c) Failure to pay court ordered child support. 
(1) On receipt of a final order suspending license, issued under Family Code, 
sec.232.008, the department will issue a notice as described in sec.18.94(d) of 
this title and suspend the license of a vehicle storage facility operator. 
(2) The department will charge an administrative fee of $5.00 to a licensee who 
is the subject of an order suspending the license.
(d) Terms of probation. If a vehicle storage facility licensee is placed on 
probation, the department may require the licensee to report regularly to the 
department on any matter that is the basis of the probation.

sec.18.96. Disposal of Certain Vehicles.
(a) Applicability. No vehicle may be disposed of unless the vehicle storage 
operator has complied with all provisions of the Act, including but not limited 
to sec.13 and sec.14B concerning notification and disposal of abandoned 
vehicles. 
(b) Notification of proposed disposal. A vehicle storage facility operator shall 
notify the vehicle owner and all recorded lienholders of the proposed disposal 
of the vehicle in accordance with sec.13(d) of the Act concerning notification. 
(c) Documentation and records. A vehicle storage facility operator shall keep 
under its care and custody complete and accurate records of any vehicle disposed 
of under sec.14B of the Act concerning abandoned vehicles. These records shall 
include, but are not limited, to: 
(1) a copy of the VTR-265VSF form completed by the vehicle storage facility 
operator and provided to the vehicle buyer; and 
(2) copies of all notifications issued to the vehicle owner and all recorded 
lienholders. 
(d) Public sale. A vehicle storage facility operator may dispose of a vehicle 
through a public sale in compliance with sec.14B of the Act concerning abandoned 
vehicles. Disputes over the sale or dispersal of proceeds from the sale of the 
vehicle may be pursued through a court of appropriate jurisdiction. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Filed with the Office of the Secretary of State, on January 30, 1998.
TRD-9801433
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 4633-8630