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 XII. Advisory Commission on State Emergency Communications 
CHAPTER 251. Regional Plans - Standards
1 TAC sec.251.7
The Advisory Commission on State Emergency Communications proposes an amendment 
to sec.251.7, concerning the inclusion of third-party software applications into 
the 9-1-1 integrated workstation environment through expanded guidelines and 
provisions. 
James D. Goerke, executive director, Advisory Commission on State Emergency 
Communications has determined that that for the first five-year period the rule 
is in effect, there will be no fiscal implications for state or local government 
as a result of enforcing the rule, however, local governments may incur costs 
dependent upon the applications they choose to incorporate into the 9-1-1 
workstation. 
Mr. Goerke 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 allowing for 
third-party applications will be an increased functionality of the 9-1-1 
workstation to more expeditiously handle emergency calls and the subsequent 
responses. There will be no effect on small businesses. There is no anticipated 
economic costs to individuals, as no individuals have a duty to comply with the 
rule as proposed. 
Comments on the proposed rule may be submitted to Mr. James D. Goerke, Executive 
Director, Advisory Commission on State Emergency Communications, 333 Guadalupe 
Street, Suite 2-212, Austin, Texas 78701-3942, facsimile number (512) 305-6937. 
Comments must be submitted no later than 5 p.m. on the thirtieth day after 
publication in the Texas Register.
The amendment is proposed under Health and Safety Code, Chapter 771, 
sec.sec.771.051, 771.056, and 771.059, which provides the Advisory Commission on 
State Emergency Communications with the authority to administer the 
implementation of statewide 9-1-1 service, to develop minimum performance 
standards for 9-1-1 service to be followed in developing regional plans, and to 
allocate money for the operation of 9-1-1 service. 
Health and Safety Code, Chapter 771 is affected by the proposed amendment.

sec.251.7. Guidelines For Implementing Integrated Services.
(a) Definitions. When used in this rule, the following words and terms shall 
have the meanings identified in paragraphs (1)-(13) of this subsection, unless 
the context and use of the word or terms clearly indicates otherwise: 
(1)-(4) (No change.)
(5) Address Maintenance Plan. A plan that identifies a cost effective program 
for the maintenance of addressing in a county. For regional planning 
commissions, <nl>also referred to as a council of governments (COG)<ol>, this 
plan is part of a regional plan as described by the Texas Health and Safety 
Code, Chapter 771. 
(6) (No change.)
(7) Emergency Communications District <nl>(District) <ol>. A public agency or 
group of public agencies acting jointly that provided 9-1-1 service before 
September 1, 1987, or that had voted or contracted before that date to provide 
that service; or a district created under Texas Health and Safety Code, Chapter 
772, Subchapters B, C, or D. 
(8)-(10) (No change.)
(11) Regional Planning Commission. A commission established under Local 
Government Code, Chapter 391, also referred to as a [regional] council of 
governments (COG). 
(12)-(13) (No change.) 
(b) Policy and Procedures. As authorized by Texas Health and Safety Code, 
Chapter 771, the ACSEC may impose 9-1-1 emergency service fees and equalization 
surcharges to support the planning, development, and provision of 9-1-1 service 
throughout the state of Texas. The implementation of such service involves the 
procurement, installation and operation of equipment designed to either support 
or facilitate the delivery of an emergency call to an appropriate emergency 
response agency. In addition, the ACSEC has funded addressing projects 
throughout the state to allow for the implementation of Automatic Location 
Identification (ALI) level of service. In the funding of such projects, it has 
been the policy of the ACSEC to fund geographic information systems and the 
development of digital maps to support such activities. The ACSEC recognizes the 
rapidly changing telecommunications environment in <nl> wireline and<ol> 
wireless services and its impact on 9-1-1 emergency services. Integration of new 
technology and 9-1-1 functionality <nl>are enhancing and facilitating<ol> [will 
facilitate] the delivery of an emergency call. It is the policy of the ACSEC 
that all 9-1-1 emergency calls for service be handled at the highest level of 
service available. In accordance with this policy, the following policies and 
procedures shall apply to the <nl>procurement, <ol> installation, and 
implementation of integrated services funded in part or in whole by the 9-1-1 
funds referenced in subsection (a)(2) of this section (relating to Definitions). 
<nl>Prior or to money being allocated, implementation of integrated services for 
a county system, a COG, and/or District shall meet the following requirements 
listed in paragraphs (1)-(4) of this subsection:<ol> 
<nl>(1)<ol> Integrated Services. 
<nl>(A)<ol> Personal Computer (PC) based Integrated Workstation (IWS) 9-1-1 
call-taking equipment has the capability of expanding the traditional 9-1-1 
Automatic Number Identification (ANI) and Automatic Location Identification 
(ALI) feature functionality to allow for additional third-party public safety 
software applications. The ACSEC is supportive of such advancement in emergency 
services call-taking capabilities; however, to ensure the integrity of 9-1-1 is 
maintained, only the following features listed in clauses (i)-(x) of this 
subparagraph are eligible integrated services: 
<nl>(i)<ol> Automatic Number Identification; 
<nl>(ii)<ol> Automatic Location Identification; 
<nl>(iii)<ol> Expanded and/or Supplemental Location Information;
<nl>(iv)<ol> Call Recording and Playback ; 
<nl>(v)<ol> Telecommunication Devices for the Deaf (TDD/TTY);
<nl>(vi)<ol> Paging; 
<nl>(vii)<ol> Texas Law Enforcement Teletype Services (TLETS);
<nl>(viii)<ol> Computer Aided Dispatch Gateway; 
(ix) Graphical/Mapping Displaying of Location and; 
<nl>(x)<ol> Call Handling Protocols. 
<nl>(B)<ol> Integrated services other than the applications listed in 
clauses(i)-(x) of subparagraph (A) must have a demonstrated applicability to the 
direct provisions of delivering 9-1-1 and emergency call-taking services. 
Services not directly related to 9-1-1 call delivery, such as administration, 
information management, and entertainment will not be authorized for integration 
into the IWS 9-1-1 call-taking equipment. 
<nl>(C)<ol> Prior to integrating and deploying the expanded third-party 
applications onto a IWS 9-1-1 call-taking environment, the following listed in 
clauses (i)-(iii) of this subparagraph must be demonstrated to the Commission to 
ensure the stability and reliability of the 9-1-1 system: 
<nl>(i)<ol> Documented "Lab" testing shall be completed by the IWS Vendor and 
councils of governments demonstrating the successful integration of the 
authorized third-party applications. Test scenarios should include documentation 
of the operating system requirements, detailed functionality results as each 
application is integrated and evaluated independently, and load testing results 
of all systems operating together on the IWS workstation.
<nl>(ii)<ol> Baseline memory usage of the operating system should maintain the 
"80/20" performance rule, thereby demonstrating that 80% of the total memory is 
available to the operating system applications, while 20% of the total memory 
remains unused. 
<nl>(iii)<ol> Documented "Live" testing in a PSAP shall also be completed by the 
IWS Vendor with cooperation and coordination by the COG or District, 
demonstrating the successful integration of the authorized third-party 
applications. Test scenarios should include documentation of the operating 
system requirements, detailed functionality results as each application is 
integrated and evaluated independently, and load testing results of all systems 
operating on the IWS workstation, as well as a standardized set of basic call-
taking functions. 
<nl>(D)<ol> Operating procedures should be established by the COG and/or 
District and security measures taken and demonstrated to ensure that non-ACSEC-
approved third-party software applications cannot be integrated into the IWS 
platform.
<nl>(E)<ol> Documentation of all testing shall be provided to the ACSEC prior to 
funding of any integrated services.
[(1) For regional planning commissions and emergency communication districts 
requesting the funding of integrated services under this policy, the 
implementation of such services, would only pertain to the graphical display of 
location information.]
(2) <nl>Graphical Display.<ol> Prior to the implementation of graphical display 
of location information for a county system, a <nl> (COG)<ol> [regional planning 
commission,] and/or [emergency communications ] <nl>District<ol> [district] 
shall meet the following requirements <nl>listed in subparagraphs (A)-(C) of 
this paragraph<ol>: 
(A)-(C) (No change.)
(3) (No change.)
(4) Annual budgeted costs associated with <nl>authorized integrated services, as 
outlined in this rule,<ol> [graphical display of 9-1-1] shall be monitored by 
the ACSEC staff for consistency with approved maintenance plans and systems 
costs. Such costs that are determined by ACSEC staff to not be consistent with 
the approved strategic plan, shall be presented for review and approval by the 
Commission. 
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 March 2, 1998.
TRD-9802985
James D. Goerke
Executive Director
Advisory Commission on State Emergency Communications
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 305-6911

TITLE 4. AGRICULTURE
PART I. Texas Department of Agriculture
CHAPTER 3. Boll Weevil Eradication Program
SUBCHAPTER E. Creation of Eradication Zones
4 TAC sec.3.113
The Texas Department of Agriculture (the department) proposes new sec.3.113, 
concerning the creation of a nonstatutory boll weevil eradication zone The new 
section is proposed to establish a new nonstatutory boll weevil eradication zone 
consisting of counties now located in a statutory zone created under Chapter 74, 
Subchapter D. sec.3.113 proposes, upon the request of the Northwest Plains Boll 
Weevil Eradication Zone Task Force, the establishment of the Northwest Plains 
Boll Weevil Eradication Zone, in accordance with Senate Bill 1814, 75th 
Legislature, 1997, sec. 1.27(d), and the Texas Agriculture Code, sec.74.1042. 
Katie Dickie Stavinoha, special assistant for producer relations, 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. 
Ms. Stavinoha 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 
sections will be the ability to address cotton growers' desires to have 
efficient, responsive eradication zones to facilitate boll weevil eradication in 
Texas. There will be no effect on small businesses. The anticipated economic 
cost to persons who will be required to comply with the new sections, as 
proposed, is not determinable at this time. If the proposed zone is established 
and an assessment approved for the zone, cotton growers in the zone will be 
assessed annually to cover costs of an eradication program in that zone. The 
costs to individual growers will depend on voter approval of the proposed zone 
and assessment and the amount of the assessment established for the zone once 
approved. 
Comments on the proposal may be submitted to Katie Dickie Stavinoha, Special 
Assistant for Producer Relations, P. O. Box 12847, Austin, Texas 78711, and must 
be received no later than 30 days from the date of the publication of this 
proposal in the Texas Register. 
The new section is proposed under the Texas Agriculture Code, sec.74.1042, which 
provides the commissioner of agriculture with the authority, by rule, to 
designate an area of the state as a proposed boll weevil eradication zone; and 
Senate Bill 1814, 75th Legislature, 1997, sec.1.27(d), which provides the 
commissioner of agriculture with the authority, by rule, to divide a statutory 
zone and fairly apportion debt to each portion of the divided zone. 
The codes affected by the proposal are the Texas Agriculture Code, Chapter 74. 

sec.3.113. Northwest Plains Boll Weevil Eradication Zone. 
The Northwest Plains Boll Weevil Eradication Zone shall consist of the following 
area originally included as a part of the Northern High Plains Eradication Zone 
described at the Texas Agriculture Code, sec.74.1021(a): all of Bailey, Castro, 
Deaf Smith, Lamb and Parmer counties. 
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 March 2, 1998.
TRD-9803026
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-7541

TITLE 7. BANKING AND SECURITIES
PART I. Finance Commission of Texas
CHAPTER 1.Consumer Credit Commissioner
SUBCHAPTER A.Regulated Loan Licenses
Division 2. Application for License and Transfer of License
7 TAC sec.sec.1.30-1.34, 1.36-1.40
The Finance Commission of Texas (the commission) proposes the adoption of new 
sec.sec.1.30 through 1.34 and sec.sec.1.36 through 1.40, concerning the 
procedures for filing an application for and issuance of a consumer (regulated) 
loan license under Chapter 3A (Texas Civil Statutes, Art. 5069-3A.101 et seq.), 
procedures for the transfer of a consumer loan license, processing procedures 
and time frames for applications, procedures for changes in business form or 
proportionate ownership, procedures for amendments to pending applications, 
procedures for the relocation of licensed offices, procedures for designating 
licenses in an active or inactive status, and the fees associated with licensing 
activities. The new sections set out detailed procedures related to applications 
for licenses under Chapter 3A. 
Section 1.30 defines particular terms. 
Section 1.31 describes the procedure for filing a new application for a consumer 
loan license, including instructions regarding what form to use and what 
information is necessary on the application and what information must be filed 
with the application.
Section 1.32 describes the procedure for filing an application for transfer of a 
consumer loan license, including the filing requirements. 
Section 1.33 describes how an application for a consumer loan license is 
processed, including a description of when an application is complete as well as 
an explanation of what may occur if an applicant fails to complete an 
application. In addition, this section describes the hearings process that 
occurs if the applicant contests the denial of its application. 
Section 1.34 describes what action the licensee must take when it changes the 
proportion of ownership in or the form of the licensed entity and lists the time 
frame within which the licensee must notify the commissioner. 
Section 1.36 requires each applicant, upon discovery of new or changed 
information, to supplement its application within 10 days of discovery of the 
new or changed information. 
Section 1.37 describes the procedures for relocating a licensed office, 
including deadlines for notification thereof. 
Section 1.38 describes how a licensee may change its license from active to 
inactive status and how a licensee may activate an inactive license. 
Section 1.39 sets out the fees for new licenses, license transfers, fingerprint 
checks, license amendment, license duplication, and costs of hearings.
Section 1.40 states that, upon filing with the Office of Consumer Credit 
Commissioner, an application for consumer loan license or notice becomes a state 
record and public information subject to the Public Information Act (formerly 
the Open Records Act.) 
Most of these procedures were currently in place as a part of the licensing 
process under the former Chapter 3. These rules clarify and streamline some of 
the filing procedures.
Leslie Pettijohn, Consumer Credit Commissioner, has determined that for the 
first five-year period these rules will be in effect, there will be no fiscal 
implications for state or local government as a result of administering or 
enforcing these rules. 
Commissioner Pettijohn also has determined that for each year of the first five-
year period these rules will be in effect, the public benefit anticipated as a 
result of the adoption of the new rules is the clarification and publication of 
the licensing procedures in Chapter 3A. 
Commissioner Pettijohn anticipates these rules will have a minimal adverse 
economic effect on small business. The economic effect primarily manifests 
itself in the form of fees. Fees relating to new licenses and transfers of 
licenses may be found insec.1.39. Many, if not all, of these fees will be 
assessed based upon the actions of the applicant for the consumer (regulated) 
loan license. Therefore, it is not possible to predict the cost of compliance 
for small businesses or to predict a comparison of the cost of compliance for 
small businesses with the cost of compliance for the largest businesses affected 
by the rules. It is anticipated that large businesses and small businesses will 
be impacted equitably. In order to derive a cost comparison pursuant to Tex. 
Gov't Codesec.2006.002(c)(2)(A), applicants for a consumer loan license could 
multiply the subject fee by the number of times the applicant believes it will 
incur that fee and then divide that number by the number of the applicant's 
employees to derive an average cost per each employee. 
Pursuant to Tex. Gov't Codesec.2001.003(d)(1), Commissioner Pettijohn has 
determined that the minimum, maximum, and median times for processing a permit 
application from the date the Office of Consumer Credit Commissioner received an 
initial permit application to the date of final disposition on the application 
is 1, 1926, and 89, respectively, in the 12 month period immediately preceding 
the date these proposed rules are published. 
Comments on the proposed adoption of the new sections may be submitted in 
writing to Leslie Pettijohn, Consumer Credit Commissioner, 2601 North Lamar 
Boulevard, Austin, Texas 78705-4207. 
The new sections are proposed under Texas Civil Statutes, Article 5069-3A.901, 
which authorizes the Finance Commission to adopt rules to enforce new Chapter 
3A. 
Texas Civil Statute, Art. 5069-3A, Subchapter C is affected by these proposed 
new sections. 

sec.1.30. Definitions.
Words and terms used in this chapter that are defined in Texas Civil Statutes, 
Article 5069, Chapter 3A, have the same meanings as defined in Chapter 3A. The 
following words and terms, when used in this chapter, shall have the following 
meanings, unless the context clearly indicates otherwise. 
(1) Net assets- The total value of acceptable assets used or designated as 
readily available for use in the business, less liabilities, other than those 
liabilities secured by unacceptable assets. Unacceptable assets include, but are 
not limited to, goodwill, unpaid stock subscriptions, lines of credit, notes 
receivable from an owner, property subject to the claim of homestead or other 
property exemption, and encumbered real or personal property to the extent of 
the encumbrance. Generally assets are available for use if they are readily 
convertible to cash within 10 business days.
(2) Principal party --- All proprietors and adult individuals with a substantial 
relationship to the proposed lending business of the applicant. Individuals with 
a substantial relationship to the proposed lending business of the applicant 
include but are not limited to: 
(A) general partners, 
(B) voting members of a limited liability corporation, 
(C) corporate officers, to include the Chief Executive Officer or President, the 
Chief Financial Officer or Treasurer, and those with substantial responsibility 
for lending operations or compliance with Texas Civil Statutes, Article 5069, or 
the Finance Code, 
(D) directors of privately-held corporations, 
(E) shareholders owning 10% or more of the outstanding voting stock, and 
(F) trustees.

sec.1.31. Filing of New Application.
An application for issuance of a new consumer loan license must be submitted on 
forms prescribed by the commissioner at the date of filing and in accordance 
with the commissioner's instructions. The application shall include, but not be 
limited to, the following: 
(1) Required Forms. All questions must be answered. 
(A) Application form (Form ADM-10/11). 
(i) A physical street address must be listed for the proposed address for the 
applicant's lending address. A post office box or a mail box location at a 
private mail-receiving service generally may not be used. If the address has not 
yet been determined or the application is for an inactive license, then the 
application must so state. 
(ii) If the applicant is a corporation, then the officers and directors' 
sections on the back side of the form must be completed. 
(iii) The section inquiring about owners requires an answer based upon the 
applicant's entity type. If an individual's interest in an entity is community 
property, then spouses with a community property interest must also be listed. 
If the business interest is owned by a married individual as separate property, 
documentation establishing or confirming such status should be provided.
(I) Sole proprietorships. The individual(s) owning and operating the business 
must be named. 
(II) General Partnerships. All partners must be listed and the percentage of 
ownership stated. 
(III) Corporations. All shareholders holding voting stock must be named if the 
corporation is privately held. If a parent corporation is the sole or part owner 
of the proposed business, a narrative or diagram must be attached that describes 
each level of ownership and management. This narrative or diagram requires the 
listing of the names of all officers, directors and stockholders owning 5% or 
more stock at each level. 
(IV) Limited Liability Partnerships. All partners, general and limited, must be 
listed and the percentage of ownership stated. If a partner is a business entity 
and not an individual, a narrative or diagram must be attached that describes 
each level of ownership. This narrative or diagram requires the listing of the 
names of all officers, directors and stockholders owning 5% or more stock at 
each level. 
(V) Limited Liability Companies. All managers, officers, agents and members, as 
those terms are used by the Texas Limited Liability Company Act, Texas Civil 
Statutes Art. 1528n, must be named. If a member is a business entity and not an 
individual, a narrative or diagram must be attached that describes each level of 
ownership. This narrative or diagram requires the listing of the names of all 
officers, directors and stockholders owning 5% or more stock at each level. 
(VI) Trusts / Estates. List the trustee(s) or executor(s).
(iv) Manager. Each person who is responsible for the day-to-day operation of one 
or more of applicant's proposed offices must be named. 
(v) Supervisor. Each person who will be responsible for the supervision of a 
licensed location must be named. 
(vi) Signature(s). With sole proprietorships and partnerships, all proprietors 
and general partners must sign. With corporate applicants, two officers must 
sign unless only one officer of the corporation has been appointed. With limited 
liability companies, two authorized members must sign unless the company only 
has one member. With trusts or estates, the trustee or executor must sign. 
(B) Statutory Agent Disclosure (Form ADM-13). This form must be completed by all 
applicants. The statutory agent is the person or entity to whom any legal notice 
may be delivered. The agent must be a Texas resident and list an address for 
legal service. If the statutory agent is an individual, the address must be a 
residential address. With corporations, the statutory agent listed on Form ADM-
13 should be the registered agent listed in the articles of incorporation. With 
limited liability companies, the statutory agent listed on Form ADM-13 must be 
the registered agent listed in the articles of organization. If the statutory 
agent is not listed in the relevant organizational document, then the applicant 
must submit certified minutes appointing the new agent.
(C) Personal Affidavit (Form ADM-15/16). Every individual listed on the license 
application (ADM-10/11) as a principal party or as a supervisor or manager must 
complete this form. The percentage of ownership stated on this form must 
correspond to the individual's percentage listed on the license application Form 
ADM-10/11. The record of business associations must also include the 
individual's association with the entity applying for the license. 
(D) Fingerprint Cards. A complete set of legible fingerprints shall be provided 
for each individual having a substantial relationship with the applicant. An 
individual has a substantial relationship with an applicant if it is a 
"principal party," as that term is defined in 7 TAC sec.1.30. Individuals who 
have previously been licensed by the commissioner and principal parties of 
entities currently licensed by the commissioner are not required to provide 
fingerprints. The commissioner may require fingerprints of employees or other 
persons with some relationship to the applicant if the commissioner believes 
that the individual's involvement in the lending operation is relevant to the 
applicant's eligibility for a license. All fingerprints should be submitted on 
the format provided by the agency and approved by the Department of Public 
Safety and the Federal Bureau of Investigation. A request for acceptable 
fingerprint cards may be made by submitting a completed Form ADM-030.097. 
(E) Financial Statement (Form ADM-17/18/19). 
(i) General Information. The financial statement must be dated no earlier than 
sixty (60) days prior to the date of application. Applicants may also submit 
audited financial statements dated within one year prior to the application date 
in order to expedite verification procedures. All financial statements must be 
certified as true, correct, and complete. 
(ii) Sole Proprietorships. Sole proprietors must complete all sections of Form 
ADM-17 and the attached schedules, Form ADM-18/19, or provide a personal 
financial statement that contains all of the same information requested by Form 
ADM - 17/18/19. 
(iii) Partnerships. A financial statement for the partnership itself must be 
submitted. In addition, each general partner must submit a financial statement. 
All of the financial statements for the partnership and the partners must be 
dated the same day. The information requested in Schedules 1-6 (ADM-18/19) must 
be submitted and attached to any balance sheet that is appended to the 
application. 
(iv) Corporations and Limited Liability Companies. Corporations and limited 
liability companies must file a balance sheet that complies with generally 
accepted accounting principles (GAAP). The information requested in Schedules 1-
6 (ADM-18/19) must be submitted and attached to any balance sheet that is 
appended to the application. Financial statements are generally not required of 
related parties, but may be required by the commissioner if the commissioner 
believes they are relevant. 
(F) Assumed Name Certificates (Forms ADM-20 and ADM-21). For any applicant that 
does business under an assumed name as that term is defined in Tex. Bus. & Comm. 
Code,sec.36.02(7), an assumed name certificate must be filed as provided in this 
subsection. 
(i) Unincorporated applicants. Unincorporated applicants using or planning to 
use an assumed name must file an assumed name certificate (ADM-20 or its 
equivalent) with the county clerk of the county where the proposed business is 
located in compliance with Tex. Bus. & Comm. Codesec.36.0010, as amended. An 
applicant must provide a copy of the assumed name certificate that shows the 
filing stamp of the county clerk or, alternatively, a certified copy. 
(ii) Incorporated applicants. Incorporated applicants using or planning to use 
an assumed name must file an assumed name certificate (ADM-21 or its equivalent) 
in compliance with Tex. Bus. & Comm. Code sec.36.0011, as amended. Evidence of 
the filing bearing the appropriate filing stamp must be submitted or, 
alternatively, a certified copy.
(2) Other Required Filings. 
(A) Loan Forms. The applicant must provide information regarding all loan forms 
it intends to use. 
(i) Custom Forms. If a custom loan form is to be prepared, a preliminary draft 
or proof that is complete as to format and content and which indicates the 
number and distribution of copies to be prepared for each transaction must be 
submitted. 
(ii) Stock Forms. If applicant purchases or plans to purchase stock forms from a 
supplier, the applicant must attach a statement that includes the supplier's 
name and address and a list identifying the forms to be used, including the 
revision date of the form, if any. 
(B) Statement of Experience. All new applicants should provide an attached 
statement setting forth the details of the applicant's prior experience in the 
lending or credit granting business. If the individuals named on the application 
do not have significant experience in the same type of credit business as 
planned for the prospective licensee, the applicant must provide a written 
statement explaining the applicant's relevant experience and why the 
commissioner should find that the applicant has the necessary experience.
(C) Statement of business operation plan. Applicants must attach a brief 
narrative to the application explaining the type of lending operation that is 
planned. This narrative should discuss each of the following topics: the source 
of customers, purpose(s) of loans, size of loans, the source of working capital 
for planned operations, whether the applicant will only be arranging or 
negotiating loans for another lender or financing entity and, if so, a list of 
those lenders, whether the loans will be collected at the location where the 
loans are made and, if not, identify the person or firm that will be handling 
servicing and state their location, and a detailed description of the process to 
be utilized in collections. 
(D) Entity documents. 
(i) Partnerships. Partnership applicants must submit a complete copy of the 
partnership agreement. This copy must be signed and dated by all partners. 
Limited partnerships must submit a copy of the articles of partnership filed 
with the secretary of state, any amendments, and a copy of the secretary of 
state's acknowledgment. 
(ii) Corporations. 
(I) All corporate applicants, domestic and foreign, must provide the following 
documents: 
(-a-) A copy of the articles of incorporation and any amendments;
(-b-) A copy of the corporate by-laws; 
(-c-) Minutes of corporate meetings that record: 
(-1-) the election of all current officers and directors as listed on the 
license application (Form ADM-10/11), and 
(-2-) the authorization for the application for the license; and 
(-d-) A certificate of good standing from the comptroller of public accounts. 
(II) All foreign corporate applicants must provide the following:
(-a-) A certificate of authority to do business in Texas.
(-b-) A statement of where corporate records and records of Texas loan 
transactions will be kept. If these records will be maintained at a location 
outside of Texas, the corporate applicant must acknowledge responsibility for 
the travel costs associated with examinations in addition to the usual 
examination fees or agree to make all the records available for examination in 
Texas. 
(III) Publicly held corporations must file the most recent 10K and 10Q for the 
applicant or for the parent company. 
(iii) Trusts. A copy of the instrument that created the trust must be filed with 
the application. 
(iv) Estates. A copy of the instrument establishing the estate must be filed 
with the application. 
(E) Bond. The commissioner may require a bond under Texas Civil Statutes, 
Article 5069-3A.202 when the commissioner finds that this would serve the public 
interest. When a bond is required, the commissioner shall give written notice to 
the applicant. Should a bond not be submitted within 40 calendar days of the 
date of the commissioner's notice, any pending application may be denied. 
(3) Subsequent Applications. If the applicant is currently licensed and filing 
an application for a new office, the applicant must provide the forms and other 
information that are unique to the new location including the application form 
(ADM 10/11) and a new financial statement as provided in 7 TAC sec.1.31(1)(E) 
Other information required by this section need not be filed if the information 
on file with the agency is current and valid. 

sec.1.32. Transfer of License.
(a) Definition. As used in this section, a "transfer of ownership" occurs 
whenever an existing owner relinquishes that owner's entire interest in a 
licensee or an entirely new person has obtained an ownership interest in the 
licensee. This term includes any purchase or acquisition of control over more 
than 10% of the outstanding voting stock of any licensed corporation, or of any 
corporation which is the parent or controlling stockholder of a licensed 
corporation. This term also includes any acquisition of a license by gift, 
devise or descent. 
(b) Approval of transfer. No consumer loan license may be sold, transferred or 
assigned without written approval of the commissioner. When a person with no 
prior ownership interest in the licensee purchases or acquires control of 10% or 
more of the voting stock of any licensed corporation, or of any corporation that 
is the parent or controlling stockholder of a licensed corporation, an 
application for transfer of the ownership of the license must be filed. 
(c) Filing requirements. An application for transfer of a consumer loan license 
must be submitted on forms prescribed by the commissioner at the date of filing 
and in accordance with the rules and the commissioner's instructions. The 
application for transfer shall include, but not be limited to, the following: 
(1) Application form (Form ADM-10/11). The instructions in 7 TAC sec.1.31(1)(A) 
are applicable to this filing.
(2) Statutory Agent Disclosure (Form ADM-13). The instructions in 7 TAC 
sec.1.31(1)(B) are applicable to this filing. 
(3) Personal Affidavit (Form ADM-15/16). Every individual listed on the license 
application (ADM-10/11) who is a principal party or is a supervisor or manager 
of the transferee must complete this form. The instructions set forth in 7 TAC 
sec.1.31(1)(C) are applicable to this filing.
(4) Fingerprints. A complete set of legible fingerprints shall be provided for 
each individual having a substantial relationship with the applicant. An 
individual has a substantial relationship with an applicant if it is a 
"principal party," as that term is defined in 7 TAC sec.1.30. Individuals who 
have previously been licensed by the commissioner and principal parties of 
entities currently licensed by the commissioner are not required to provide 
fingerprints. The commissioner may require fingerprints of employees or other 
persons with some relationship to the applicant if the commissioner believes 
that the individual's background history is relevant to the applicant's 
eligibility for a license. All fingerprints should be submitted on a format 
provided by the agency and approved by the Department of Public Safety and the 
Federal Bureau of Investigation. A request for acceptable fingerprint cards may 
be made by submitting a completed Form ADM-030.097. 
(5) Evidence of the transfer of ownership. Documentation evidencing the transfer 
of ownership must be filed with the application. This must include one of the 
following: 
(A) a copy of the asset purchase agreement when only the assets have been 
purchased, 
(B) a copy of the stock purchase agreement if 10% or more of the outstanding 
voting stock of a corporate licensee has been purchased or otherwise acquired, 
or 
(C) any document that transferred ownership in a licensee by gift, devise or 
descent, such as a probated will or a court order. 
(6) Financial statement (ADM-17/18/19). The instructions in 7 TAC sec.1.31(1)(E) 
are applicable to this filing.
(7) Other Required Filings. All filings required of new license applicants 
pursuant to 7 TAC sec.1.31 (2) must be filed and completed by any applicant for 
transfer of a license. If the applicant is currently licensed and acquiring 
another location, the applicant must provide the forms and other information 
that are unique to the new location. Other information required by this 
subsection need not be filed if the information on file with the agency is 
current and valid.
(d) Permission to operate. No business under the license shall be conducted by 
any transferee until the application has been received, all applicable fees have 
been paid, and a request for permission to operate has been approved by the 
commissioner. The commissioner may deny a request for permission to operate 
during the pendency of the application. 
(e) Purchaser operating under seller's license. The commissioner may approve a 
written agreement whereby a seller grants a buyer the authority to operate under 
the seller's consumer loan license pending approval of the buyer's license 
application. The agreement must provide that the seller accepts full 
responsibility to the commissioner and any customer of the licensed business for 
any acts of the buyer in connection with the operation of the lending business. 
The written agreement between the seller and the buyer must be submitted with a 
request to operate under the seller's license not less than three (3) business 
days after the date of the sale. The agreement shall be for a limited time as 
provided in the agreement and in no case may such authority extend beyond 180 
days. 
(f) Application filing deadline. Applications filed in connection with transfers 
of ownership may be filed in advance but must be filed no later than ten (10) 
calendar days following the actual transfer. 

sec.1.33. Processing of Application.
(a) Initial review. The commissioner shall respond to applications within 15 
working days of receipt stating that the application is complete and accepted 
for filing or stating that the application is incomplete and specifying the 
information required for acceptance. 
(b) Complete application. An application is complete when it: 
(1) conforms to the rules and the commissioner's published instructions, 
(2) all fees have been paid, and 
(3) all requests for additional information have been satisfied. 
(c) Failure to complete application. If a complete application has not been 
filed with the commissioner within 30 days after notice of deficiency has been 
sent to the applicant, the application may be denied. 
(d) Hearing. Whenever an application is denied, the affected applicant has 30 
days from the date the application was denied to request in writing a hearing to 
contest the denial. This hearing shall be conducted pursuant to the 
Administrative Procedure Act, Government Code, Chapter 2001 and 7 TAC sec.9.01 
et seq., before an administrative law judge who will recommend a decision to the 
commissioner. The commissioner will then issue a final decision after review of 
the recommended decision.
(e) Denial. Upon the final denial of an application, the annual fee shall be 
refunded to applicant. The investigation fee shall be forfeited.
(f) Processing time. 
(1) The commissioner shall ordinarily approve or deny a license application 
within a maximum of 60 days after the date of filing of a completed application. 
(2) When a hearing is requested following an initial license application denial, 
the hearing shall be held within 60 days after a request for a hearing is made 
unless the parties agree to an extension of time. The commissioner shall make a 
final decision approving or denying the license application after receipt of the 
proposal for decision from the administrative law judge. 
(3) Exceptions. The commissioner may take more time where good cause exists, as 
defined by Government Code,sec.2005.004, for exceeding the established time 
periods in subsections (1) and (2) above. 

sec.1.34.Change in Form or Proportionate Ownership. 
(a) Organizational form. When any licensee desires to change the organizational 
form of its business (e.g. from sole proprietorship to corporation), the 
licensee must advise the commissioner in writing of the change within ten (10) 
calendar days by filing the appropriate transfer documents as provided in 7 TAC 
sec.1.32. In addition, the licensee shall submit a copy of the organizational 
document (such as the articles of incorporation) for the new entity. 
(b) Merger. A merger of a corporate licensee is a change of ownership and 
requires the filing of a transfer application pursuant to 7 TAC sec.1.32. A 
merger of the parent corporation of a licensee with another corporation that 
leads to the creation of a new corporate entity requires a transfer application 
pursuant to 7 TAC sec.1.32. A merger of the parent corporation of a licensee 
with another corporation that results in the situation where the surviving 
corporation is not the existing parent corporation requires a transfer 
application pursuant to 7 TAC sec.1.32. Mergers of other corporations with a 
beneficial interest beyond the parent corporation level only require 
notification within 10 calendar days. 
(c) Proportionate Ownership. A mere change in the proportion of ownership among 
the current owners does not require the filing of a transfer application. A 
change in the proportionate interests of two or more current owners of consumer 
loan license must be reported in writing. 
(d) Notice deadline. Notices filed in connection with changes in proportionate 
ownership may be filed in advance but must be filed no later than ten (10) 
calendar days following the actual change. 

sec.1.36. Amendments to Pending Applications.
Each applicant shall provide the commissioner with information supplemental to 
that contained in the applicant's original application documents and 
attachments. Any action, fact, or information that would require a materially 
different answer than that given in the original license application and which 
relates to the qualifications for license must be reported to the commissioner 
within 10 business days after the person has knowledge of the action, fact or 
information.

sec.1.37. Relocation of Licensed Offices. 
(a) A licensee may move the licensed office from the licensed location to any 
other location by giving notice of intended relocation to the commissioner not 
less than 30 days prior to the anticipated moving date. The notice must include 
the present address of the licensed office, the contemplated new address of the 
licensed office, the approximate date of relocation, and a copy of the notice to 
debtors. 
(b) Written notice of a relocation of an office must be mailed to all debtors of 
record at least 5 days prior to the date of relocation. Any licensee failing to 
give the required notice shall waive all default charges on payments coming due 
from the date of relocation to 15 days subsequent to the mailing of notices to 
debtors. Notices shall identify the licensee, give both old and new addresses, 
old and new telephone numbers, and state the date relocation is effective. The 
notice to debtors can be waived or modified by the commissioner when it is in 
the public interest. A request for waiver or modification must be submitted in 
writing for approval. The commissioner may approve notification to debtors by 
signs in lieu of notification by mail, if in the commissioner's opinion, no 
debtors will be adversely affected. 

sec.1.38. Designation of Active/Inactive Status. 
(a) Inactivation of an active license. A licensee may cease operating under a 
consumer loan license and render the license inactive by giving notice of the 
cessation of operations to the commissioner not less than 30 days prior to the 
anticipated cessation date. Notification must be filed on the license amendment 
form (ADM-34). The notice must include the address of the licensed office, a 
certification that no loans will be made or collected under this license until 
it is reactivated, and the fee for amending the license. 
(b) Activation of an inactive license. A licensee may activate an inactive 
consumer loan license by giving notice of the intended activation to the 
commissioner not less than 30 days prior to the anticipated activation date and 
remitting the fee for license amendment. Notification must be filed on the 
license amendment form (ADM-34) and must include the contemplated new address of 
the licensed office and the approximate date of activation. 

sec.1.39. Fees. 
(a) New licenses. A $200 investigation fee is assessed each time an application 
for a new license is filed and is non-refundable. In addition, the applicant is 
initially required to pay an annual license fee of $100 that is not prorated but 
is refundable if the license application is denied. 
(b) License transfers. With applications for transfer of a license, the 
applicant must pay an investigation fee of $200 for the first license transfer 
and $50 on each additional license transfer sought simultaneously and is non-
refundable. 
(c) Fingerprint checks. The fee to investigate each applicant's fingerprint 
record is $40 per set and is non-refundable. This fee must be paid for each set 
of fingerprints filed with applications for new licenses or license transfers. 
(d) License amendment. A fee of $25 must be paid each time a licensee seeks to 
amend a license by rendering a license inactive, activating an inactive license, 
changing the assumed name of the licensee, or relocating an office. 
(e) License duplicate. The fee for a license duplicate is $10. 
(f) Costs of hearings. The commissioner may assess the costs of an 
administrative appeal hearing afforded under 7 TAC sec.1.33(d) above, including 
the cost of the administrative law judge, the court reporter and agency staff 
representing the agency at a hearing.

sec.1.40. Applications and Notices as Public Records. 
Once a license application or notice is filed with the OCCC, it becomes a "state 
record" under Government Code,sec.441.180(11), and "public information" under 
Government Code, sec.552.002. Under Government Code,sec.sec.441.190, 441.191 and 
552.004, the original applications and notices must be preserved as "state 
records" and "public information" unless destroyed with the approval of the 
director and librarian of the State Archives and Library Commission under 
Government Code,sec.441.187. Under Government Code, sec.441.191, the OCCC may 
not return any original documents associated with a consumer loan license 
application or notice to the applicant or licensee. An individual may request 
copies of a state record under the authority of the Government Code, Chapter 
552.
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 20, 1998.
TRD-9802600
Leslie L. Pettijohn
Commissioner
Finance Commission of Texas
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 936-7600

7 TAC sec.sec.1.31-1.34, 1.36-1.40
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Finance 
Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Finance Commission of Texas (the commission) proposes the repeal of 
sec.sec.1.31- 1.34 and 1.36-1.40, part of the rules which implemented Chapter 3, 
Texas Civil Statutes, Article 5069-3.01 et seq. The sections which are proposed 
for repeal relate to licensing procedures under Chapter 3, Texas Civil Statutes, 
Article 5069-3.01 et seq., which was repealed by the 75th Legislature. Moreover, 
they are being replaced by a new set of rules for Chapter 3A, a new chapter of 
the Credit Title which encompasses old Chapters 3 through 5. The new rules are 
in the process of being published for comment in the Texas Register. 
Leslie Pettijohn, Consumer Credit Commissioner, has determined that for the 
first five-year period the repeal as proposed will be in effect, there will be 
no fiscal implications for state or local government as a result of 
administering or enforcing the repeal. 
Ms. Pettijohn also has determined that for each year of the first five-year 
period the repeal as proposed will be in effect, the public benefit anticipated 
as a result of the repeal is the removal of unenforceable regulations which will 
provide space for replacement rules. There is no anticipated economic cost to 
persons who are required to comply with the repeal as proposed. There will be no 
effect on small businesses. 
Comments on the proposed repeal may be submitted in writing to Leslie Pettijohn, 
Consumer Credit Commissioner, 2601 North Lamar Boulevard, Austin, Texas 78705-
4207. The repeal is proposed under Texas Civil Statutes, Article 5069-3A.901, 
which authorizes the Finance Commission to adopt rules to enforce new Chapter 
3A. The repeal will not be adopted until the proposed replacement sections are 
adopted. 
The statutory provisions (as currently in effect) affected by the proposed 
repeal are Texas Civil Statutes, Articles 5069, Chapter 3A, Subchapter C.
sec.1.31. Filing of Application 
sec.1.32. Principal Parties 
sec.1.33. Requirement of Bond 
sec.1.34. Financial Responsibility 
sec.1.36. Sale or Transfer of Regulated Receivables
sec.1.37. Sale, Transfer, or Assignment of License
sec.1.38. Acquisition of Stock 
sec.1.39. Acquisition of License of Gift, Devise, or Descent
sec.1.40 Organizational Form of Business Certification
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 20, 1998.
TRD-9802599
Leslie L. Pettijohn
Commissioner
Finance Commission of Texas
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 936-7600

TITLE 16. ECONOMIC REGULATION
PART II. Public Utility Commission of Texas
CHAPTER 23. Substantive Rules
Records and Reports
16 TAC sec.23.17
(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 Public Utility 
Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Public Utility Commission of Texas (commission) proposes the repeal of 
sec.23.17, relating to Administration of IntraLATA Compensation and 
Interexchange Carrier Access Charge Revenues. On December 17, 1997, the 
commission adopted new sec.sec.23.131 (relating to Texas Universal Service Fund 
(TUSF)), 23.133 (relating to Texas High Cost Universal Service Plan (THCUSP)), 
23.134 (relating to Small and Rural Incumbent Local Exchange Carrier (ILEC) 
Universal Service Plan), 23.136 (relating to Implementation of the Public 
Utility Regulatory Act sec.56.025), 23.138 (relating to Additional Financial 
Assistance), 23.142 (relating to Service and Link Up Service Programs), 23.143 
(relating to Tel-Assistance Service), 23.147 (relating to Designation of Local 
Exchange Carriers as Eligible Telecommunications Providers to Receive Texas 
Universal Service Funds), 23.148 (relating to Designation of Common Carriers as 
Eligible Telecommunications Carriers to Receive Federal Universal Service 
Funds), and 23.150 (relating to Administration of Texas Universal Service Fund). 
Upon implementation of these new rules, sec.23.17 will become duplicative and no 
longer necessary. Project Number 18654 has been assigned to the proposed repeal 
of sec.23.17. 
Diana Zake, senior policy analyst, Office of Policy Development, has determined 
that for each year of the first five-year period this repeal is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the repeal. 
Diana Zake has determined that for each year of the first five years the repeal 
is in effect, the public benefit anticipated as a result of the repeal will be 
the elimination of confusion resulting from duplicative rule sections. There 
will be no effect on small businesses as a result of repealing this section. 
There is no anticipated economic cost to persons as a result of repealing this 
section. 
Diana Zake has also determined that for each year of the first five years the 
repeal is in effect there will be no impact on employment in the geographical 
area affected by the repeal of this section. 
Comments on the proposed repeal (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 N. Congress Avenue, P.O. Box 
13326, Austin, Texas 78711- 13326, within 30 days after publication. All 
comments should refer to Project Number 18654. 
The repeal is proposed under the Public Utility Regulatory Act, Texas Utilities 
Code Annotated sec.14.002 (Vernon 1998) (PURA), which provides the commission 
with the authority to make and enforce rules reasonably required in the exercise 
of its powers and jurisdiction. 
Cross Index to Statutes: Public Utility Regulatory Act sec.14.002. 
sec.23.17. Administration of IntraLata Compensation and Interexchange Carrier 
Access Charge Revenues.
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 26, 1998.
TRD-9802844
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas 
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 936-7308

Customer Service and Protection
16 TAC sec.23.53
(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 Public Utility 
Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Public Utility Commission of Texas (commission) proposes the repeal of 
sec.23.53, relating to Universal Service Fund. On December 17, 1997, the 
commission adopted new sec.sec.23.131 (relating to Texas Universal Service Fund 
(TUSF)), 23.133 (relating to Texas High Cost Universal Service Plan (THCUSP)), 
23.134 (relating to Small and Rural Incumbent Local Exchange Carrier (ILEC) 
Universal Service Plan), 23.136 (relating to Implementation of the Public 
Utility Regulatory Act sec.56.025), 23.138 (relating to Additional Financial 
Assistance), 23.142 (relating to Service and Link Up Service Programs), 23.143 
(relating to Tel- Assistance Service), 23.144 (relating to Telecommunications 
Relay Service), 23.145 (relating to Specialized Equipment Distribution), 23.147 
(relating to Designation of Local Exchange Carriers as Eligible 
Telecommunications Providers to Receive Texas Universal Service Funds), 23.148 
(relating to Designation of Common Carriers as Eligible Telecommunications 
Carriers to Receive Federal Universal Service Funds), and 23.150 (relating to 
Administration of Texas Universal Service Fund). Upon implementation of these 
new rules, sec.23.53 will become duplicative and no longer necessary. Project 
Number 18653 has been assigned to the proposed repeal of sec.23.53. 
Diana Zake, senior policy analyst, Office of Policy Development, has determined 
that for each year of the first five-year period this repeal is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the repeal. 
Diana Zake has determined that for each year of the first five years the repeal 
is in effect, the public benefit anticipated as a result of the repeal will be 
the elimination of confusion resulting from duplicative rule sections. There 
will be no effect on small businesses as a result of repealing this section. 
There is no anticipated economic cost to persons as a result of repealing this 
section. 
Diana Zake has also determined that for each year of the first five years the 
repeal is in effect there will be no impact on employment in the geographical 
area affected by the repeal of this section. 
Comments on the proposed repeal (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 N. Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-13326, within 30 days after publication. All comments 
should refer to Project Number 18653. 
The repeal is proposed under the Public Utility Regulatory Act, Texas Utilities 
Code Annotated sec.14.002 (Vernon 1998) (PURA), which provides the commission 
with the authority to make and enforce rules reasonably required in the exercise 
of its powers and jurisdiction. 
Cross Index to Statutes: Public Utility Regulatory Act sec.14.002. 
sec.23.53. Universal Service Fund.
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 26, 1998.
TRD-9802843
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas 
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 936-7308

CHAPTER 25. Substantive Rules Applicable to Electric Service Providers
The Public Utility Commission of Texas proposes new sec.25.41, relating to 
Calculation, Rendering, and Form of Certain Electric Bills, new sec.25.87, 
relating to Distribution Unbundling Reports, and new sec.25.221, relating to 
Electric Cost Separation. These sections are proposed under Project Number 
16536. These new sections are intended to aid in the regulation of retail 
electric service provided by jurisdictional electric utilities. The new section 
relating to the calculation, rendering, and form of certain electric bills would 
change and simplify the way information is displayed on the monthly electric 
bills issued by electric utilities that have completed the proposed cost 
separation requirements. The new section relating to distribution unbundling 
reports would require utilities to file an annual report relating to the number 
and kinds of electric meters in use, generation mix and emissions, and the 
numbers and kinds of customer services. The new section relating to cost 
separation would require electric utilities to separate the costs of electric 
service into functional categories consisting of electricity production, 
electricity delivery, and the provision of related services -- metering and 
billing services, customer services, and energy services -- to electric 
customers. 
This rulemaking proceeding has three objectives. The first is to separate the 
costs of electric service by function so the commission can monitor the cost of 
the service components. The second objective is to begin the process of removing 
regulation from those services and markets which are sufficiently competitive 
such that regulatory-based pricing and oversight are no longer needed. The 
commission determined in its consideration of integrated resource planning that 
unbundling distribution functions would facilitate further competition in the 
existing retail energy-service markets, and concluded that there is no longer a 
reason to maintain strict regulatory control over those markets. Cost separation 
is the first step in the process of unbundling and deregulating those markets. 
The third objective of this proceeding is to enhance public awareness of 
electricity production and delivery costs. Presenting total costs by function 
allows customers to become better informed about the cost components that 
underlie their electric bills. Changes in the presentation of information on the 
electric bill may cause some initial customer concerns, but it will not change 
the total cost to each customer and it will allow customers to become more 
informed consumers of electricity today and in the future. 
The commission requests that interested parties particularly address the 
following questions issues in their comments. These questions are grouped into 
eight categories: the application of the proposed regulations; the terminology 
that may appear on customer bills; the grouping of costs on customer bills; the 
need for additional education efforts; the simplification of reporting 
requirements; the classification of services for the purpose of unbundling; the 
appropriateness of old cost-of-service studies; and the cost of complying with, 
and the benefits to be gained by, the proposed regulations. This grouping 
provides a framework for discourse on these topics, and interested parties 
should organize their comments using the topics listed above. The commission 
also seeks any other comments on the proposed rule. 
First, the commission is interested in receiving comments on the application of 
the proposed regulations. Is an exemption for small utilities appropriate? If 
so, what exemptions would allow the commission to meet its goals? The commission 
is also interested in whether any exemption for a small utility would deny 
choices or information to the customers of that utility. 
Second, the terminology that may appear on customer bills must be understood by 
a typical customer. What terms and presentation are appropriate to address the 
commission's goals relating to simplification, public awareness, and customer 
education? 
Third, the commission is interested in the grouping of costs on customer bills. 
Should the costs of metering and billing service and customer service -- once 
identified in the cost of service -- be included as a component of the cost of 
power, the cost of power delivery, or as a separate item on the bill? 
Fourth, in raising public awareness relative to the presentation of cost 
information on the electric bill some additional education efforts may be 
required. Should the commission and utilities conduct customer education efforts 
before unbundled electric bills are distributed? 
Fifth, the purpose of the reporting requirement relating to generation mix and 
emissions is to capture -- to an accuracy of approximately one-half percent -- a 
utility's annual generation mix and emissions, so that customers who would like 
this information may have access to it. Because such percentages must include 
power purchases, should the commission adopt a methodology or a set of 
simplifying assumptions for this purpose? If so, what methods, assumptions, or 
procedures are appropriate such that the reporting burden will be kept to the 
minimum necessary to achieve the accuracy desired? 
Sixth, the commission has set forth a classification scheme for the services 
provided by retail electric utilities today, and it would invite comment on 
these definitions. Is each definition reasonable? How should the commission 
unbundle the cost of other competitive services that are not energy related and 
not included in the proposed definitions? 
Seventh, the commission is interested in using appropriate cost data during the 
compliance phase of this proceeding. Should the commission require all affected 
utilities to prepare an up-to-date cost-of-service study for the compliance 
filing? If not, how old a cost-of-service study should be permitted for the 
compliance filing? What other criteria are more appropriate to make this 
determination? 
Finally, the commission requests that electric utilities that could be affected 
by the proposed regulations provide an estimate of the cost of compliance with 
the proposed regulations with the utility's initial comments. A utility's cost 
estimates should indicate its cost of modifying customer bills, its cost of 
preparing annual reports, and its cost of modifying cost-accounting procedures 
and separating costs. Interested persons may reply to each utility's cost 
estimates. In addition, the commission invites specific comments regarding the 
costs associated with, and benefits that will be gained by, implementation of 
the new regulations. The commission will consider the costs and benefits in 
deciding whether to adopt the new regulations. 
Nat Treadway, policy analyst, Office of Policy Development, has determined that 
for the first five years that the proposed sections are in effect there will be 
no fiscal implications for state and local government as a result of enforcing 
or administering the sections. 
Mr. Treadway also has determined that for the first five years that the proposed 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections includes improved regulatory oversight of the cost of electricity 
delivery and the provision of related services by retail electric utilities, 
increased competition in the provision of services as utilities seek to reduce 
costs, increased efficiency in the provision of competitive energy services, and 
enhanced customer awareness of the cost of electricity, the cost of power 
delivery, and the cost of related services. 
The proposed new sections relating to electric billing and cost separation are 
likely to increase the costs to utilities of complying with the commission's 
rules, but the benefits described above are expected to outweigh the costs. The 
costs of complying with the proposed regulations concerning electric billing and 
cost separation are difficult to estimate and are likely to vary from utility to 
utility. Utilities that maintain billing and accounting systems that are 
flexible and readily altered may incur no significant costs. Utilities that out-
source billing and accounting may incur a modest cost at the time of negotiating 
a new contract. A rough estimate of the annual cost for utilities that must 
substantially revise customer billing and cost accounting procedures is from 
$20,000 to $2.5 million, depending on the size of the utility. To put these 
figures in context, the cost of service for the largest electric utility in the 
state is about $5.6 billion, while the revenue of a small utility is measured in 
millions of dollars. 
For each year of the first five years the proposed sections are in effect, there 
will be no effect on small businesses as a result of enforcing the proposed 
sections. The new sections relating to electric billing and cost separation may 
increase the opportunities for small businesses to provide services to electric 
utilities, but the magnitude of this benefit is uncertain.
It is anticipated that the economic impact of the rules on the persons that are 
required to comply with them will be favorable, but it is impossible to estimate 
the magnitude of this benefit. These rules should improve utility services by 
permitting a more focused application of the state's resources to the regulation 
of electric utilities, and by bringing better pricing information to customers. 
Mr. Treadway has further determined that for the first five years the proposed 
new sections are in effect there will be a favorable effect on the opportunities 
for employment in the geographic areas of Texas affected by implementing the 
requirements of the rules, but it is impossible to estimate the magnitude of the 
benefit. 
Comments on the proposed rule (16 copies) may be submitted to Filing Clerk, 
Public Utility Commission of Texas, 1701 N. Congress Avenue, P.O. Box 13326, 
Austin, Texas, 78711-3326, within 30 days after publication. Reply comments may 
be submitted within 45 days after publication. All comments should refer to 
Project Number 16536: Cost Separation Proposal. 
The commission staff will conduct a public hearing on this rulemaking under 
Government Code sec.2001.029 at the commission's offices on Friday, May 8, 1998, 
at 9:00 a.m. in the commissioners' hearing room, seventh floor of the William B. 
Travis Building, 1701 N. Congress Avenue, Austin, Texas, 78701. Interested 
persons may make oral comments concerning the proposed regulations at that time. 

SUBCHAPTER B. Customer Service
16 TAC sec.25.41
This section is proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.sec.14.002, 32.101, 38.001, 38.002, and 38.003 
(Vernon 1998) (PURA). Section 14.002 provides the Public Utility Commission of 
Texas with the authority to make and enforce rules reasonably required in the 
exercise of its powers and jurisdiction. Section 32.101 requires an electric 
utility to file tariffs with each regulatory authority showing each rate that is 
in effect for a utility service, product, or commodity. Section 38.001 requires 
an electric utility to furnish service, instrumentalities, and facilities that 
are safe, adequate, efficient, and reasonable. Sections 38.002 and 38.003 
provide the commission with authority to adopt reasonable standards and 
classifications with respect to electric services. 
Cross Index to Statutes: Public Utility Regulatory Act sec.sec.14.002, 32.101, 
38.001, 38.002, and 38.003. 

sec.25.41. Calculation, Rendering, and Form of Certain Electric Bills. 
(a) Purpose. The purpose of this section is to more clearly present total cost 
information by function on the customers' electric bills. In no event shall the 
compliance proceeding of this rule be used to alter the amount that a customer 
pays for electric service under the utility's effective rates. 
(b) Application. This section shall apply to all electric utilities that provide 
retail electric utility service in Texas. 
(c) Compliance and timing. Affected utilities shall file a plan for revising 
billing formats and shall file sample bills consistent with this section at the 
time that utility makes a compliance filing under sec.25.221 of this title 
(relating to Electric Cost Separation). The sample bills for residential 
customers shall be based on usage of 500 and 1000 kilowatt-hours per month. The 
sample bills for small commercial customers shall be based on usage of 7500 and 
15000 kilowatt-hours per month, with 35 kilowatts per month demand usage in each 
case. At its election, the affected utility may also amend its existing approved 
tariffs to indicate how the separately-stated costs will be calculated for 
retail customers' bills using approved rates. The commission shall issue an 
order approving or modifying and approving the sample billing format and the 
utility's plan for revising its billing format prior to implementation of the 
new billing procedures. Once this order has been issued, sec.23.45(g)(2) of this 
title (relating to Billing) no longer applies to the affected utility. 
(d) Definitions. As used in this section, the terms affected utility, generation 
service, transmission service, distribution service, metering and billing 
service, customer service, and energy service have the meanings set forth in 
sec.25.221 of this title. The term renewable resource refers to electricity 
generated by a renewable energy technology as that term is defined in sec.23.3 
of this title (relating to Definitions). 
(e) Calculation of bills. Affected utilities shall calculate the customer's 
electric bill according to the utility's approved tariffs.
(f) Rendering of bills. Bills for electric service shall be rendered monthly, 
unless otherwise authorized by the commission, or unless service is rendered for 
a period of less than one month. Bills shall be rendered as promptly as possible 
following the reading of meters. 
(g) Form of bills to present separated costs and usage. Affected utilities shall 
render bills that display, at a minimum, the following information for the 
relevant billing period. The information listed in paragraphs (1) - (6) of this 
subsection shall be displayed in a conspicuous manner. 
(1) the total cost of generation service, customer service, metering and billing 
service, and any commission-approved energy service, using the term "cost of 
power"; 
(2) the "average cost per kWh," calculated by dividing the total cost listed in 
paragraph (1) of this subsection by the total kilowatt-hours consumed; 
(3) the total cost of transmission service and distribution service, using the 
term "cost of power delivery"; 
(4) the total cost of retail taxes, using the term "taxes (city, state)"; 
(5) the sum of the total costs listed in paragraph (1), (3), and (4) of this 
subsection, which shall be the total amount due for services provided, using the 
term "total due"; 
(6) the date payment is due; 
(7) if the meter is read by the utility, the date and reading of the meter at 
the beginning and at the end of the period for which the bill is rendered, and 
the number of units metered for that time period;
(8) the total amount due after addition of any penalty for nonpayment within a 
designated period. The terms "gross bill" and "net bill" or other similar terms 
implying the granting of a discount for prompt payment shall be used only when 
an actual discount for prompt payment is granted. The terms shall not be used 
when a penalty is added for nonpayment within a designated period; 
(9) the following explanations: 
(A) that the applicable rate schedule will be mailed on request to the customer; 
(B) how to contact the utility for customer service, billing inquiries, or to 
report an outage or emergency condition, including the appropriate telephone 
numbers and other information; 
(C) the statement: "Persons unable to resolve billing or service complaints with 
their electric provider may contact the Public Utility Commission of Texas' 
Office of Customer Protection at 1701 N. Congress Ave., P.O. Box 13326, Austin, 
TX 78711-3326, or by internet at customer@puc.state.tx.us."; and 
(D) the statement: "Persons interested in obtaining information regarding this 
electric provider's mix of generation resources (coal, gas, nuclear, or 
renewable resource) and air emissions may request a disclosure statement by 
calling (insert utility phone number) or writing to the utility at (insert 
utility address)." 
(h) Past due balance. All rules pertaining to billing and disconnection of 
service shall apply to backbilling, with the exception of sec.23.45(b) of this 
title. 
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 27, 1998.
TRD-9802949
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas 
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 936-7308

SUBCHAPTER D. Records and Reports
16 TAC sec.25.87
This section is proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.sec.14.002, 32.101, 38.001, 38.002, and 38.003 
(Vernon 1998) (PURA). Section 14.002 provides the Public Utility Commission of 
Texas with the authority to make and enforce rules reasonably required in the 
exercise of its powers and jurisdiction. Section 32.101 requires an electric 
utility to file tariffs with each regulatory authority showing each rate that is 
in effect for a utility service, product, or commodity. Section 38.001 requires 
an electric utility to furnish service, instrumentalities, and facilities that 
are safe, adequate, efficient, and reasonable. Sections 38.002 and 38.003 
provide the commission with authority to adopt reasonable standards and 
classifications with respect to electric services. 
Cross Index to Statutes: Public Utility Regulatory Act sec.sec.14.002, 32.101, 
38.001, 38.002, and 38.003. 

sec.25.87. Distribution Unbundling Reports. 
(a) Purpose. The purpose of this section is to require the filing of certain 
reports by affected utilities. 
(b) Application. This section shall apply to electric utilities that provide 
retail electric utility service in Texas. 
(c) Compliance and timing. Affected utilities shall file annual reports with the 
commission's filing clerk on the last working day of February each year which 
shall cover the 12 months of the preceding calendar year. The first such report 
may cover months prior to the effective date of this section. 
(d) Definitions. As used in this section, the terms affected utility, generation 
service, transmission service, distribution service, metering and billing 
service, customer service, and energy service have the meanings set forth in 
sec.25.221 of this title (relating to Electric Cost Separation). The term 
renewable resource refers to electricity generated by a renewable energy 
technology as that term is defined in sec.23.3 of this title (relating to 
Definitions). 
(e) Reports. Affected utilities shall file the following reports on forms 
provided by the commission. 
(1) Meters. The report shall indicate the number of meters in service at year 
end by customer class, rate schedule, and type of meter.
(2) Generation mix and generation emissions. The utility's generation mix and 
generation emissions shall include the mix and emissions associated with 
purchased power. The utility shall state its assumptions made to estimate the 
fuel sources and emissions associated with the utility's power purchases. The 
utility's generation mix and generation emissions shall be compared to national 
and state- wide averages as established by the commission.
(A) The report shall indicate the utility's generation mix in percentages for 
the previous calendar year using the following terms: "coal and lignite"; 
"natural gas"; "fuel oil"; "nuclear fuel"; and "renewable resource."
(B) The report shall indicate the utility's generation emissions for the 
previous calendar year based on the average emissions using the following terms: 
"pounds of nitrous oxide (NO<sub>x) per megawatt-hour (MWh)"; "pounds of sulfur 
dioxide (SO<sub>2) per megawatt-hour (MWh)"; and "tons of carbon dioxide 
(CO<sub>2) per megawatt-hour (MWh)."
(3) Customer service. The report shall be organized by individual activity, 
program, or service. The report shall describe all services provided to retail 
customers. These include services provided according to a rate schedule, service 
regulations, contracts between the utility and its customers, or other 
arrangements, including services provided according to an arrangement that is 
not set forth on an approved tariff. The report shall indicate the annual 
expenditures by cost category; the number of participants or customers affected; 
the applicable charges and revenues, if any; the compensation or rebates, if 
any; and a report on the status or results of evaluations planned, initiated, in 
progress, or completed during the reporting year. 
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 27, 1998.
TRD-9802950
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas 
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 936-7308

SUBCHAPTER I. Transmission and Distribution
16 TAC sec.25.221
This section is proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.sec.14.002, 32.101, 38.001, 38.002, and 38.003 
(Vernon 1998) (PURA). Section 14.002 provides the Public Utility Commission of 
Texas with the authority to make and enforce rules reasonably required in the 
exercise of its powers and jurisdiction. Section 32.101 requires an electric 
utility to file tariffs with each regulatory authority showing each rate that is 
in effect for a utility service, product, or commodity. Section 38.001 requires 
an electric utility to furnish service, instrumentalities, and facilities that 
are safe, adequate, efficient, and reasonable. Sections 38.002 and 38.003 
provide the commission with authority to adopt reasonable standards and 
classifications with respect to electric services. 
Cross Index to Statutes: Public Utility Regulatory Act sec.sec.14.002, 32.101, 
38.001, 38.002, and 38.003. 

sec.25.221. Electric Cost Separation.
(a) Purpose. The purpose of this section is to identify the costs incurred by 
electric utilities that provide retail electric utility service, and to separate 
such costs into six categories: generation service, transmission service, 
distribution service, metering and billing service, customer service, and energy 
service. This section establishes procedures for cost separation. 
(b) Application. This section shall apply to electric utilities that provide 
retail electric utility service in Texas. 
(c) Definitions. As used in this section, the following terms have the following 
meanings unless the context clearly indicates otherwise:
(1) Affected utilities - shall refer to all utilities to which this section 
applies. 
(2) Customer service - A service that is related to the provision of electric 
service by a retail electric utility in Texas. Customer service does not include 
generation service, transmission service, distribution service, metering and 
billing service, or energy service. Customer service consists of the following 
services: 
(A) preparation and maintenance of the tariff book; 
(B) explanation of the tariff options to customers and determination of the 
appropriate rate schedule for a retail customer; 
(C) low-income programs and activities; 
(D) electrical pulse service and the communication of information relating to 
customer usage; 
(E) general customer education, school programs, and community education 
activities; 
(F) safety advertising or other advertising required by the commission; 
(G) economic development and community affairs; and, 
(H) materials, accounting, and administrative support required to carry out the 
functions in subparagraphs (A) - (G) of this paragraph. 
(3) Distribution service - A service that ensures delivery of electric power 
from the transmission system to retail customers. Distribution service consists 
of the following services: 
(A) the safe delivery of electric power to retail customers, generally, but not 
exclusively, below 60 kilovolts; 
(B) the regulation and control of electricity in the distribution system; 
(C) distribution system reliability; 
(D) distribution system voltage and power continuity; 
(E) initiation of service, including installation and activation of facilities; 
(F) monitoring of power delivery at the distribution feeder level; 
(G) line extensions; 
(H) underground service; 
(I) access to and use of rights of way and distribution facilities by telephone, 
cable, security, wireless, and other non-electric services;
(J) response to electric delivery problems, including outages, interruptions, 
and voltage variations, and restoration of service in a timely manner; and 
(K) materials, accounting, and administrative support required to carry out the 
functions in subparagraphs (A) - (J) of this paragraph. 
(4) Energy service - A service that is related to the provision of electric 
service by a Texas retail electric utility. Energy service does not include 
generation service, transmission service, distribution service, metering and 
billing service, or customer service. Energy service includes, but is not 
limited to: 
(A) installation, sale, financing, repair, operation, or warranty of energy- 
consuming, customer-premise equipment; 
(B) energy efficiency and load management programs and activities;
(C) technical assistance relating to any customer-premises process or device 
that consumes electricity; 
(D) activities relating to customer-premises power quality and reliability 
services; 
(E) trade group, builder, and developer activities; 
(F) comprehensive or walk-through energy audits; 
(G) customer-premises power-generation equipment and related services; 
(H) building or facility design and related engineering services, or analysis 
and design of energy-related industrial processes; 
(I) hedging and risk management services; 
(J) propane, liquid propane gas, and other energy-based services;
(K) retail marketing, selling, demonstration, and merchant activities; and, 
(L) materials, accounting and administrative support required to carry out the 
functions in subparagraphs (A) - (K) above. 
(5) Generation service - The production and purchase of electricity for retail 
customers and the production, purchase, and sale of electricity in the wholesale 
power market. 
(6) Metering and billing service - A service that ensures that electricity 
delivered to retail customers is accurately measured and billed to customers. 
Metering and billing service consists of the following services: 
(A) measurement or estimation of the electricity consumed or demanded by a 
retail electric customer during a specified period; 
(B) meter calibration and testing; 
(C) meter reading, including remote meter reading; 
(D) individual customer outage detection and usage monitoring;
(E) theft detection and prevention; 
(F) presentation of charges to customers for the actual services provided and 
the rendering of bills; 
(G) extension of credit and collection of payments from customers;
(H) disbursement of funds collected; 
(I) uncollectible accounts; 
(J) customer account data management; 
(K) response to customer inquiries and complaints in an appropriate and timely 
manner concerning generation service, transmission service, distribution 
service, or metering and billing service; and 
(L) materials, accounting, and administrative support required to carry out the 
functions in subparagraphs (A) - (K) of this paragraph. 
(7) Transmission service - As defined in sec.23.67(b) and sec.23.70(b) of this 
title (relating to Open-access Comparable Transmission Service and Terms and 
Conditions of Open-access Comparable Transmission Service). For the purpose of 
this section, ancillary service, as defined in sec.23.67(b) of this title, is a 
component of transmission service. 
(8) Working day - A day on which the commission is open for the conduct of 
business. 
(d) Cost separation. Affected utilities shall maintain a cost-accounting and 
records system based on the Federal Energy Regulatory Commission chart of 
accounts system, as it may be updated, to ensure that the costs associated with 
generation service, transmission service, distribution service, metering and 
billing service, customer service, and energy service are accurately and 
separately identified. Affected utilities shall create and maintain any 
additional accounts to identify and separate all costs incurred to provide 
retail electric utility service into six functions: generation service, 
transmission service, distribution service, metering and billing service, 
customer service, and energy service. The commission may adopt rate-filing 
requirements that require affected utilities to provide additional details 
concerning the separation of costs into these six categories, and the manner in 
which such costs should be reported in the compliance filing. 
(e) Compliance filing. Affected utilities shall make a filing to comply with the 
cost separation requirements of this section. The filing shall conform to the 
procedures and guidelines set forth in the commission's rate-filing package for 
cost separation pursuant to this section. The compliance filing of affected 
utilities owning transmission facilities may be based on the cost data 
underlying the unbundling cost-of-service study approved by the commission in 
its most recent transmission cost-of-service proceeding. The compliance filing 
of other affected utilities may be based on the cost data underlying the cost-
of-service study approved in the utility's most recent rate case; however, 
utilities which have not received commission approval of a cost-of-service study 
within five years of the effective date of this section may be required to 
prepare a new cost-of-service study. 
(f) Compliance filing date. Affected utilities shall make a compliance filing 
according to the following schedule: 
(1) Any affected utility with more than one million retail electric meters shall 
file within 60 days of the effective date of this section. Any jurisdictional 
electric utility affiliated with such a utility shall file at that time. 
(2) Any affected utility with more than 100,000 meters but fewer than or equal 
to one million meters shall file within 150 days of the effective date of this 
section. Any jurisdictional electric utility affiliated with such a utility 
shall jointly file with the utility. 
(3) All other affected utilities shall file within one year of the effective 
date of this section. 
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 27, 1998.
TRD-9802951
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas 
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 936-7308

TITLE 19. EDUCATION
PART I. Texas Higher Education Coordinating Board
CHAPTER 5.Program Development
SUBCHAPTER A.General Provisions
19 TAC sec.5.10
The Texas Higher Education Coordinating Board proposes to Chapter 5, Subchapter 
A, new sec.5.10, concerning General Provisions (Student Transcripts). The 
proposed rules are being made to implement provisions of the Texas Education 
Code related to tuition rebates and the TASP, some additional information must 
be included on student transcripts. The proposed rules would accomplish three 
things: (a) they would require that transcripts from public institutions contain 
a record of all courses attempted at that institution; (b) they would require 
that transcripts indicate when and how students had satisfied TASP requirements; 
and (c) they would require that institutions maintain transcripts in a 
compatible electronic format by fall 2000. 
Roger Elliott, Assistant Commissioner for Financial Planning, Campus Planning 
and Research has determined that for the first five-year period the rule is in 
effect there will be no fiscal implications as a result of enforcing or 
administering the rule. 
Dr. Elliott also has determined that for the first five years the rule is in 
effect the public benefit will be that the institutions will be required to 
contain records of all courses attempted at that institution. There will be no 
effect on state or local government or small businesses. There is no anticipated 
economic costs to persons who are required to comply with the rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The new amendments to the rules are proposed under Texas Education Code, Section 
54.0065, which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning General Provisions (Student Transcripts). 
There were no other sections or articles affected by the proposed amendments.

sec.5.10. Student Transcripts. 
(a) Student transcripts shall contain a record of each state funded course 
attempted by a student at the transcripting institution after January 1, 1998. 
This includes all courses for which the student was enrolled as of the official 
census date each term, including developmental education courses, courses that 
were not completed, courses that were dropped, and courses that were repeated. 
(b) After September 1, 1998, the student transcript or an addendum to the 
transcript certified by the appropriate institutional official shall contain a 
record of the student's status in regard to the Texas Academic Skills program 
(TASP). Depending on the status of the individual student, the document should 
include the status for each section of the test (reading, mathematics, writing) 
with information as to how the student met the TASP requirement (TASP test or 
other test scores, "B" or better courses with grades and course numbers, or 
other assessment procedures used to fulfill the requirement stipulated by law). 
The information provided should enable receiving institutions to use the 
transcript or the addendum as a single source of information to determine the 
student's TASP status. 
(c) Student transcripts created after September 1, 2000 should be maintained by 
the institutions in a format suitable for electronic interchange. The format of 
transcripts shall be the format that is used to store the most transcripts by 
Texas institutions of higher education as of September 1, 1998 or another format 
adopted by a majority of the members of the Texas Association of Collegiate 
Registrars and Admissions Officers prior to that date.
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 23, 1998.
TRD-9802657
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER M.Approval and Operation of Community/Junior College Branch Campuses
19 TAC sec.sec.5.261-5.267
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas Higher 
Education Coordinating Board or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 5, 
Subchapter M, sec.5.261 - sec.5.267 concerning Approval and Operation of 
Community/Junior College Branch Campuses. The repeal of the rules are as a 
result of a complete review, rewriting, and restructuring of current Board rules 
affecting public two-year degree granting institutions. The changes will replace 
repealed rules to improve readability, consistency, and uniformity, and will add 
rules to address legislation not previously included in Board rules. The 
proposed amendments will not substantially change the operation of public two-
year degree granting institutions since many of the functions not previously 
addressed by Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The repeal of the rules is proposed under Texas Education Code, Sections 61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Approval and 
Operation of Community/Junior College Branch Campuses. 
There were no other sections or articles affected by the proposed amendments.
sec.5.261. Purpose.
sec.5.262.Authority. 
sec.5.263. Definitions. 
sec.5.264. Conversion Provisions. 
sec.5.265. Application and Approval Procedures. 
sec.5.266. Continuing Coordinating Board Supervision.
sec.5.267. Reclassification.
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 23, 1998.
TRD-9802806
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: February 25, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER P.Testing and Developmental Education
19 TAC sec.sec.5.311, 5.312, 5.314-5.318
The Texas Higher Education Coordinating Board proposes amendments to Chapter 5, 
Subchapter P, sec.5.311, sec.5,312, sec.5.314 - sec.5.318 concerning Testing and 
Developmental Education. The proposed changes would implement provisions of 
legislation contained in Senate Bill 148 passed by the 75th Legislature. Most of 
those provisions became effective in the fall of 1997, but several significant 
provisions were not to become effective until fall 1998. The amendments under 
consideration at this time relate primarily to the fall 1998 provisions. The 
provisions in the proposed amendments would: eliminate the nine-hour rule and 
consequently require each undergraduate student who enters a public institution 
of higher education to be tested for reading, writing and mathematics skills 
prior to enrolling in any collegiate-level courses; provide alternative test 
instruments to be used to test a student initially when taking the TASP Test is 
not possible prior to the beginning of collegiate-level work; provide for 
standards for the alternative test instruments; establish other assessment 
procedures, as required by Texas Education Code, Section 51.306(g), to be used 
by institutions to determine whether students who cannot pass the TASP Test may 
enroll in upper-division courses or graduate; clarify rules permitting students 
who earn a grade "B" or better in specified freshman-level credit courses and 
who have not passed the TASP Test to enroll in collegiate-level courses; specify 
the time period to be used to determine state funding limits for developmental 
education under the 18/27 credit hour funding cap; and clarify, add or delete 
terms and definitions. 
Bill Sanford, Assistant Commissioner for Universities has determined that for 
the first five- year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Dr. Sanford also has determined that for the first five years the rule is in 
effect the public benefit will be that these changes update Board rules to bring 
them into alignment with amendments to state law. They clarify alternative ways 
to meet the requirements of the law, thereby providing the potential for better 
access and retention in higher education. The changes also require students to 
test earlier which will result in developmental assistance being applied earlier 
which should reduce the need for developmental education in higher education. 
There will be no effect on state or local government or small businesses. There 
is no anticipated economic costs to persons who are required to comply with the 
rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station; Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Section 
51.307, which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning Testing and Developmental Education. 
There were no other sections or articles affected by the proposed amendments.

sec.5.311.Purpose. 
In accordance with, and under the authority of Texas Education Code (TEC) 
Section 51.306 and 51.403, this subchapter is intended to delineate policies 
relating to the Texas Academic Skills Program (TASP) and the treatment of 
students in public institutions of higher education who do not pass one or more 
sections of <nl>an approved test given for TASP purposes<ol> [the Texas Academic 
Skills Program Test]. 

sec.5.312. Definitions.
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
<nl>(1)<ol> <nl> Alternative Test--A test instrument approved by the Board for 
use by an institution to initially test a student.<ol>
<nl>(2) <ol> Blind student and Deaf student -- For the purpose of this 
subchapter blind student and deaf student mean students who are blind or deaf 
persons as defined by the Texas Education Code, Section 54.205(a).
<nl>(3)<ol> Developmental Education -- For the purposes of this subchapter is 
defined as courses, tutorials, laboratories, or other efforts to bring student 
skill levels in reading, writing and mathematics to entering college level. 
<nl>The term does<ol> [Does] not include courses in English as a Second Language 
(ESL), study skills or thinking skills. 
<nl>(4)<ol> Extension requests -- Requests to extend TASP compliance deadlines 
for students who have not taken the test due to circumstances beyond their 
control. 
<nl>(5)<ol> Freshman -- A matriculated student who has accumulated fewer than 
thirty college-level semester credit hours or the equivalent. 
<nl>(6)<ol> Minimum Passing Standard -- Statewide testing standard <nl>each 
undergraduate student who enters a public institution of higher education,<ol> 
[all public postsecondary students,] unless exempt, must meet or exceed on 
<nl>measures of reading, writing and mathematics skills in order to fulfill 
requirements specified in Texas Education Code, Section 51.306<ol> [each section 
of the TASP Test to leave state mandated developmental education or to progress 
to upper division course work or to graduate from a Texas public postsecondary 
institution].
<nl>(7)<ol> Non-Degree Credit Course -- A course which may not be counted toward 
a degree or certificate. <nl>The term includes <ol> [Includes] developmental, 
pre-collegiate and continuing education courses. 
<nl>(8)<ol> Testing irregularity -- Any occurrence in the course of 
administering the TASP Test or detected after administration of the test that 
violates rules of test participation, standards of test security and/or academic 
honesty. 
<nl>(9)<ol> Texas Academic Skills Program (TASP) Test -- The test required by 
Texas Education Code, Section 51.306 which shall be uniformly administered 
statewide on days prescribed by the Board and shall be scored by the testing 
contractor. The test measures college readiness in reading, writing and 
mathematics and includes a written essay. It is administered under secure 
conditions and each student is provided with diagnostic information regarding 
test performance. 
<nl>(10)<ol> Upper-division course -- Any degree credit course beyond the 
sophomore level as defined by a four-year senior university, and any degree 
credit course offered by an upper-level institution. 
[Pre-TASP Test -- A local placement test that may be administered and scored by 
qualified campus personnel on a schedule determined by the institution.] 

sec.5.314. Administration. 
(a) <nl>Testing<ol> [All institutions shall use the TASP Test and testing] 
procedures <nl>for the TASP Test are<ol> prescribed by the Board. <nl>Testing 
procedures for the approved alternative tests are the purview of each 
institution and must include reasonable and appropriate accommodations for 
students with disabilities and internal policies for testing irregularities and 
academic dishonesty.<ol> [The same instrument shall be used at all public 
institutions of higher education.] 
(b) (No Change) 
(c) Once a student has passed any section of the TASP Test <nl> or an approved 
alternative test<ol>, his or her score shall remain active. Test sections passed 
while a student is in high school are valid for a period of five years per 
<nl>Section 5.313(a)(4)(D)<ol> [Section 5.313(a)(3)(D)] of this title (relating 
to Eligibility and Exemptions).
(d) (No Change) 
[(e) An institution may not charge a student more than $4.00 for the 
administration and scoring of the Pre-TASP Test.]
<nl>(e)<ol> [(f)] Policies relating to these rules must be followed as they are 
described and further extended in the TASP Policy Manual. 
<nl>(f)<ol> [(g)] Each institution of higher education shall provide information 
in the institution's catalog relating to the testing and developmental education 
requirements of TASP and of the rules adopted by the Board. 
<nl>(g)<ol> [(h)] TASP Test scores may be withheld and/or canceled for any 
student who is suspected of committing a testing irregularity during the TASP 
Test administration. A student whose TASP Test scores have been withheld shall 
receive prompt notification of the reasons why the scores have been withheld and 
shall be entitled to due process of law prior to any cancellation of scores. 
Institutions may be notified in the event the student is found to have committed 
a testing irregularity. 
<nl>(h)<ol> [(i)] The Commissioner of Higher Education has the authority to 
grant or reject extension requests. 

sec.5.315. Standards. 
<nl>(a)<ol> Effective 9/16/95 and until amended by the Board, minimum passing 
scaled score standards for the TASP Test are set at: Reading - 230; Mathematics 
- 230; Writing - 220. 
<nl>(b)<ol> <nl> Minimum passing standards for approved alternative tests shall 
be set to provide a 95 percent probability of passing appropriate sections of 
the TASP Test. Until amended by the Board, minimum passing standards for the 
approved alternative tests are: <ol> 
<nl>(1)<ol> <nl>ASSET, <ol>
<nl>(2)<ol> <nl>COMPASS, <ol>
<nl>(3)<ol> <nl>MAPS, and <ol>
<nl>(4)<ol> <nl>ACCUPLACER. <ol>
<nl>(c)<ol> <nl>Institutions may require higher performance standards. <ol>

sec.5.316.Developmental Education and Advisement.
[(a) For initial placement of a student, an institution may use any appropriate 
diagnostic assessment procedures.]
<nl>(a)<ol> [(b)] A student whose performance is below the minimum passing 
standard set by the Board for a tested skill area on the TASP Test <nl>or 
approved alternative test<ol> must participate continuously in a developmental 
education program. Continuously means that <nl> until the institution certifies 
that a student has successfully completed developmental education, a 
student,<ol> during each <nl>enrolled term, <ol> [semester in which a student is 
enrolled, he or she] must participate and be enrolled in a developmental course 
or other developmental program <nl>prescribed<ol> [provided] by the institution. 
<nl>(b)<ol> [(c)] <nl>Alternative tests are to be used only for initial testing; 
the TASP Test must be used for all retakes. <ol> If the <nl>initial<ol> TASP 
Test <nl>or alternative test<ol> results indicate that developmental education 
is necessary in any area tested, the institution shall refer the student to 
developmental courses or other types of developmental programs made available by 
the institution. Developmental education must begin <nl>upon enrollment for any 
collegiate-level work<ol> [as soon as possible, but not later than the beginning 
of the next semester]. On successful completion of the developmental coursework 
or program prescribed by the institution, the student shall retake those 
portions of the TASP Test for which developmental education was required. 
<nl>(c)<ol> [(d)] Each institution shall make available those courses and 
programs on the same campus or center at which the student would otherwise 
attend classes. Where there are multiple centers or sites for classes, an 
institution may designate a principal site or sites where developmental 
education will be conducted. 
<nl>(d)<ol> [(e)] An institution may elect to provide developmental programs or 
courses on its campus by contracting with a second institution to deliver the 
instruction. If such an arrangement is made, the host institution will be 
responsible for the quality and effectiveness of developmental education. 
<nl>(e)<ol> [(f)] An upper level institution or health science center that 
admits a student who has not passed the TASP Test is responsible for providing 
developmental instruction on campus either through the provision of non-degree 
credit developmental programs or by contracting with another institution, as 
provided in subsection (e) of this section.
<nl>(f)<ol> [(g)] Developmental courses and programs may not be considered as 
credit toward completion of degree or certificate requirements. 
<nl>(g)<ol> [(h)] Each institution shall establish an advising program to advise 
students at every level of undergraduate courses and degree options that are 
appropriate for the individual student. 
<nl>(h)<ol> [(i)] Each institution shall formulate policies to require and 
monitor students' [continuous] participation in appropriate developmental 
courses and/or other types of programs until such students have <nl>fulfilled 
the requirements specified in Texas Education Code, Section 51.306<ol> [passed 
all sections of the TASP examination]. <nl>A student who has successfully 
completed an institution's developmental requirements during any term does not 
have to be in developmental education during the next enrolled term as long as 
the student retakes the TASP Test or attempts one of the approved courses in an 
effort to earn a grade of "B" or better. Should the student fail to retake the 
TASP Test, complete the "B" course or earn a "B" or better, institutions must 
evaluate the student to determine subsequent action keeping in mind that the 
overall goal is to help the student complete the TASP requirements as soon as 
possible. Failure to meet all TASP requirements will bar students from 
graduation at a community or technical college and upper-division work at a 
university.<ol> 
<nl>(i)<ol> [(j)] The faculty of each institution should review its degree 
credit and certificate courses, and may identify those courses for which 
students must demonstrate prior successful performance on one or more parts of 
the TASP examination <nl>or an approved alternative test<ol>. Each institution 
adopting such a placement plan shall file it with the Board. In the absence of 
such a placement plan, students would be eligible to enroll concurrently in 
developmental programs and college level courses, subject to appropriate 
advisement. 
<nl>(j)<ol> [(k)] When students are concurrently enrolled in multiple Texas 
public institutions of higher education, the institution where the student first 
registers and pays full tuition charges (Texas Education Code, Section 54.062) 
takes precedence for the provision of developmental education in accordance with 
subsections (d) and (e) of this section. 

sec.5.317.Reporting and Funding.
(a) Institutional Reporting 
(1) (No Change) 
(2) Each institution of higher education shall report to the Board (in 
accordance with Texas Education Code, Section 51.403e) the following information 
on student performance during the first year enrolled after graduation from high 
school: TASP Test scores, <nl>alternative test scores,<ol> developmental 
education courses required, and grade point average.
(b) (No Change) 
(c) Funding. 
<nl>(1)<ol> A general academic teaching institution (university) may not receive 
funding for developmental courses taken by a student in excess of 18 semester 
credit hours; a public community <nl>college district<ol> or technical college 
may not receive funding for developmental courses taken by a student in excess 
of 27 semester credit hours or the equivalent. 
<nl>(2)<ol> All developmental hours funded by the state must be counted toward 
each student's total number of developmental hours at a given institution. 
<nl>Institutions must include all developmental hours funded during and after 
the summer 1996 term.<ol> 
(d) Audits. 
(1) Each institution is responsible for full compliance with Texas Education 
Code, Section 51.306 and the rules adopted by the Board. Failure to comply with 
the TASP statute and rules by admitting students to take semester credit hours 
or the equivalent who have not taken or passed the TASP Test (when applicable), 
or any other act or omission that results in the accumulation of semester credit 
hours or the equivalent in violation of the TASP statute and rules shall be a 
basis for disallowing those credits by audit <nl>exceptions <ol>, resulting in 
an adjustment of the dollar amounts of institutional funds. The funding 
adjustment will be based on credit hours used in the contact hours base period 
that have been disallowed as a result of audit. 
(2) (No Change) 

sec.5.318.Students Who Earn a "B" or Better in Freshmen-level Credit Courses. 
(a) A student who initially fails one or more sections of the TASP Test<nl>, or 
an approved alternative test,<ol> must successfully complete the developmental 
program(s) prescribed by the institution and must then retake the appropriate 
sections of the TASP Test. A student who fails the retake may [then] be allowed 
to take<nl>, or apply for these purposes,<ol> a collegiate level course approved 
by the Board in Section 5.318(b) of this title (relating to Students Who Earn a 
"B" or Better in Freshmen-level Credit Courses). Students attempting such 
courses are not required to be concurrently enrolled in a developmental activity 
<nl>related to that portion of the test <ol>. A student who earns a grade of "B" 
(3.0 on a 4.0 scale) or better in such a course in the skill area in which a 
deficit was assessed shall not be required to achieve the minimum passing 
standard on the TASP Test and shall not be prohibited from graduating or 
continuing with his/her program of study. Institutions shall clearly indicate on 
an official transcript the fact that a student has met the TASP requirement. 
(b) (No Change) 
<nl>(c)<ol> <nl>Institutions may choose from the authorized course list and are 
not required to offer all of the approved courses. However, an institution must 
offer at least one course from the list in each subject area for these purposes. 
<ol>
<nl>(d)<ol> [(c)] Students enrolling at Texas public institutions of higher 
education [in the fall semester of 1997 or thereafter] who have failed one or 
more sections of the TASP Test <nl> or an approved alternative test<ol>, 
completed the prescribed developmental education <nl>program<ol> [sequence] to 
the satisfaction of the institution, retaken and failed sections of the TASP 
Test following the completion of developmental education, but who have 
previously earned <nl> or subsequently earn<ol> a grade of "B" or better in an 
appropriate course approved by the Board, may use that course to fulfill the 
requirements of Texas Education Code, Section 51.306(g). <nl>While a student may 
take courses from the list at any time appropriate to an academic program, 
grades of "B" or better in such courses may not be used to satisfy the TASP 
requirement until the above sequence has been completed.<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 February 23, 1998.
TRD-9802654
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

19 TAC sec.5.313
(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 Higher 
Education Coordinating Board or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 5, 
Subchapter P, sec.5.313 concerning Testing and Developmental Education 
(Eligibility and Exemptions). The repeal of the rules would implement provisions 
of legislation contained in Senate Bill 148 passed by the 75th Legislature. Most 
of those provisions became effective in the fall of 1997, but several 
significant provisions were not to become effective until fall 1998. The 
amendments under consideration at this time relate primarily to the fall 1998 
provisions. The provisions in the proposed amendments would: eliminate the nine-
hour rule and consequently require each undergraduate student who enters a 
public institution of higher education to be tested for reading, writing and 
mathematics skills prior to enrolling in any collegiate-level courses; provide 
alternative test instruments to be used to test a student initially when taking 
the TASP Test is not possible prior to the beginning of collegiate-level work; 
provide for standards for the alternative test instruments; establish other 
assessment procedures, as required by Texas Education Code, Section 51.306(g), 
to be used by institutions to determine whether students who cannot pass the 
TASP Test may enroll in upper-division courses or graduate; clarify rules 
permitting students who earn a grade "B" or better in specified freshman-level 
credit courses and who have not passed the TASP Test to enroll in collegiate-
level courses; specify the time period to be used to determine state funding 
limits for developmental education under the 18/27 credit hour funding cap; and 
clarify, add or delete terms and definitions. 
Bill Sanford, Assistant Commissioner for Universities has determined that for 
the first five- year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Dr. Sanford also has determined that for the first five years the rule is in 
effect the public benefit will be that these changes update Board rules to bring 
them into alignment with amendments to state law. They clarify alternative ways 
to meet the requirements of the law, thereby providing the potential for better 
access and retention in higher education. The changes also require students to 
test earlier which will result in developmental assistance being applied earlier 
which should reduce the need for developmental education in higher education. 
There will be no effect on state or local government or small businesses. There 
is no anticipated economic costs to persons who are required to comply with the 
rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station; Austin, Texas 78711. 
The repeal of the rules is proposed under Texas Education Code, Section 51.307, 
which provides the Texas Higher Education Coordinating Board with the authority 
to adopt rules concerning Testing and Developmental Education. There were no 
other sections or articles affected by the proposed amendments.
sec.5.313. Eligibility and Exemptions.
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 23, 1998.
TRD-9802655
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

19 TAC sec.5.313
The Texas Higher Education Coordinating Board proposes to Chapter 5, Subchapter 
P, new sec.5.313 concerning Testing and Developmental Education (Eligibility and 
Exemptions). The proposed changes would implement provisions of legislation 
contained in Senate Bill 148 passed by the 75th Legislature. Most of those 
provisions became effective in the fall of 1997, but several significant 
provisions were not to become effective until fall 1998. The amendments under 
consideration at this time relate primarily to the fall 1998 provisions. The 
provisions in the proposed amendments would: eliminate the nine-hour rule and 
consequently require each undergraduate student who enters a public institution 
of higher education to be tested for reading, writing and mathematics skills 
prior to enrolling in any collegiate-level courses; provide alternative test 
instruments to be used to test a student initially when taking the TASP Test is 
not possible prior to the beginning of collegiate-level work; provide for 
standards for the alternative test instruments; establish other assessment 
procedures, as required by Texas Education Code, Section 51.306(g), to be used 
by institutions to determine whether students who cannot pass the TASP Test may 
enroll in upper-division courses or graduate; clarify rules permitting students 
who earn a grade "B" or better in specified freshman-level credit courses and 
who have not passed the TASP Test to enroll in collegiate- level courses; 
specify the time period to be used to determine state funding limits for 
developmental education under the 18/27 credit hour funding cap; and clarify, 
add or delete terms and definitions. 
Bill Sanford, Assistant Commissioner for Universities has determined that for 
the first five- year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Dr. Sanford also has determined that for the first five years the rule is in 
effect the public benefit will be that these changes update Board rules to bring 
them into alignment with amendments to state law. They clarify alternative ways 
to meet the requirements of the law, thereby providing the potential for better 
access and retention in higher education. The changes also require students to 
test earlier which will result in developmental assistance being applied earlier 
which should reduce the need for developmental education in higher education. 
There will be no effect on state or local government or small businesses. There 
is no anticipated economic costs to persons who are required to comply with the 
rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Section 
51.307, which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning Testing and Developmental Education. 
There were no other sections or articles affected by the proposed amendments.

sec.5.313. Eligibility and Exemptions.
(a) Eligibility 
(1) Beginning in the fall semester of 1998, each undergraduate student, unless 
otherwise exempt, who enters a public institution of higher education must be 
tested for reading, writing and mathematics skills prior to enrolling in any 
collegiate-level coursework. The unit cost of each test shall be borne by the 
student. A student who has accumulated at least one but fewer than nine semester 
credit hours or the equivalent of collegiate level work must be tested prior to 
the end of the enrollment period of the fall 1998 term. A student who has not 
been tested may be permitted to enroll in coursework only under the 
circumstances provided in Section 5.313(a)(2) of this title (relating to 
Eligibility and Exemptions), but must take the TASP Test not later than the end 
of the first semester of enrollment. If any student under this section fails to 
take the TASP Test during the designated semester, the student will not be 
permitted to re-enroll or to enroll in any Texas public higher education 
institution in any courses other than non-degree credit courses until he or she 
has taken the examination. Students may retake courses for which credit has 
already been granted (for no additional credit), and may also audit courses. 
(2) Circumstances under which a student who has not been tested may enroll in 
college-level coursework are as follows: 
(A) Documented illness, injury or other bonafide emergency which prevents a 
student from testing; 
(B) Diagnosed and documented disability for which reasonable and appropriate 
accommodations could not be provided by the institution in a timely manner. 
(3) The Board has approved alternative test instruments that an institution may 
use as it chooses to initially test students. Sections of those tests which are 
passed will count as passing the TASP Test and those sections failed or not 
attempted will result in required enrollment in developmental education. 
(A) Each alternative test instrument shall be correlated with the TASP Test in 
that it must be of a diagnostic nature and be designed to provide a comparison 
of the skill level of the individual student with the skill level necessary for 
a student to perform effectively in an undergraduate degree program. 
(B) Alternative tests must include sections measuring reading, mathematics and 
writing skills and a multiple-paragraph written essay of about 300 to 600 words 
on an assigned topic. A student shall be permitted at least one hour to complete 
the essay portion of the test. The writing prompt shall be academic in nature 
where the assignment, audience and purpose of the essay shall be provided and 
the student required to choose and support a position with logical arguments and 
appropriate examples. The objective portion of the writing test may be used for 
placement and developmental education purposes, but the essay shall be the 
primary criterion for passing the writing section. Essays must be scored by the 
appropriate testing company and may not be scored locally. 
(C) Alternative tests are to be used only for initial testing; the TASP Test 
must be used for all retakes. Therefore, on completion of the developmental 
coursework or program, the student shall take that portion of the TASP Test for 
which developmental education was required. 
(D) Institutions may or may not choose to offer an alternative test; however, 
students may not enroll in any collegiate-level coursework until they have been 
tested unless they meet one of the circumstances listed in Subsection (2) of 
this section. Institutions which choose not to offer an alternative test must 
make every effort to ensure that students take the TASP Test prior to beginning 
collegiate coursework. Students who do not meet the requirements of Texas 
Education Code, Section 51.306(b) must be limited to developmental or non-credit 
coursework only. 
(E) The alternative tests approved by the Board are: 
(i) ASSET offered by ACT 
(ii) COMPASS offered by ACT 
(iii) Multiple Assessment Programs and Services (MAPS) offered by The College 
Board 
(iv) ACCUPLACER offered by The College Board 
(F) The unit costs of each alternative test shall be borne by the student. 
(4) A high school student who has passed the exit-level assessment required 
under Texas Education Code, Section 39.023 (TAAS) shall be encouraged to take 
the TASP Test while enrolled in high school unless otherwise exempt. The Board 
shall work with the Texas Education Agency to encourage eligible students to 
take the test; however, taking the test shall be voluntary.
(A) Each eligible high school student shall pay for the cost of taking the test 
unless funds are appropriated for that purpose. If funds are appropriated for 
that purpose, the Board and the Texas Education Agency shall develop a mechanism 
for the payment of the cost of the test. 
(B) The test shall be offered to high school students outside of regularly 
scheduled school days and at locations throughout the state.
(C) A high school student who fails to achieve the minimum passing standard set 
by the Board may not be required to take developmental classes while in high 
school and may not take collegiate level classes related to portions of the test 
that have not been passed. However, after graduation from high school, a student 
who enters a public institution of higher education must comply with the 
provisions in Texas Education Code, Section 51.306. 
(D) A high school student who achieves the minimum passing standard set by the 
Board shall be deemed to have met the requirements of Texas Education Code, 
Section 51.306 when enrolling at a public institution of higher education, 
provided that the student enrolls in the institution not later than five years 
from the date the test is taken and the set score level is achieved. A student 
enrolling for the first time in a public institution of higher education after 
the five-year period has elapsed must comply with all provisions of Texas 
Education Code, Section 51.306. The five-year period will begin on the date when 
the minimum passing standard is achieved on each test section. 
(E) The Board shall work with the Texas Education Agency to provide high school 
students, their parents, and their schools with information about the TASP and 
assist them in interpreting the results of the test. 
(F) Institutions of higher education shall actively encourage eligible students 
from area high schools to take the TASP Test while still in high school and 
shall provide TASP information to those high schools. 
(G) A high school student who enrolls in dual credit (or is concurrently 
enrolled in college-level coursework) must take the TASP Test or, under the 
circumstances specified in Section 5.313(a)(3), of this title (relating 
Eligibility and Exemptions) to an alternative test prior to enrolling in 
coursework. 
(5) No student may graduate from a Level-Two certificate program (43-59 semester 
credit hours or the equivalent), an associate degree program or baccalaureate 
degree program or enroll in any upper-division course completion of which would 
give the student 60 or more college-level semester credit hours or the 
equivalent (the student may continue to enroll in lower-division or non-degree 
credit courses only) without having: 
(A) passed all sections of the TASP Test (or an alternative test on initial 
attempt only) unless the student is exempted under subsection (b) of this 
section; or 
(B) earned a grade of "B" or better in a freshman-level credit course in the 
skill area of the assessed deficit in accordance with Section 5.318 of this 
title (relating to Students Who Earn a "B" or Better in Freshman-Level Credit 
Courses). 
(6) After successful completion of an appropriate developmental program, a 
student must retake appropriate sections of the TASP Test. 
(7) An institution which by law may not offer lower-division courses may use 
performance on the TASP Test as a condition of admission.
(8) A health science center may use performance on the TASP Test as a condition 
of admission only to upper-level programs. 
(9) Blind students will take the TASP Test with appropriate accommodations and 
deaf students will take the Stanford Achievement Test nationally normed on the 
hearing impaired population by Gallaudet University. Deaf students who fail 
portions of the Stanford Achievement Test must enroll in developmental education 
each term and may not graduate until all sections of the test are passed. Until 
amended by the Board, minimum passing standards on the Stanford Achievement Test 
to be used in lieu of the TASP Test are: 
(A) Reading Comprehension - 652 scaled score, 29 raw score;
(B) Mathematics Total - 682 scaled score, 66 raw score; 
(C) Language Total - 662 scaled score, 37 raw score; and 
(D) Study Skills - 663 scaled score, 19 raw score. 
(10) Texas public institutions of higher education offering collegiate-level 
credit to students via Multi-Institution Teaching Centers (MITCs) or to in-state 
students by distance learning delivery systems must meet all TASP requirements 
specified in Texas Education Code, Section 51.306. 
(b) Exemptions 
(1) Any student with at least three college-level semester credit hours or the 
equivalent from an accredited institution accumulated prior to the fall of 1989 
shall not be required to take the TASP Test regardless of any election of 
academic fresh start (Texas Education Code, Section 51.929). Such credit hours 
must be certified as college-level by the granting institution and need not be 
applicable toward a degree or certificate. 
(2) Students who perform at or above a level set by the Coordinating Board on 
the ACT, Scholastic Assessment Test (SAT) or exit-level Texas Assessment of 
Academic Skills (TAAS) shall be exempt from the TASP Test requirement. This 
exemption will be in effect for five years from the date the ACT or SAT was 
taken and for three years from the date the TAAS Test was taken. While tests may 
be retaken, ACT or SAT scores meeting or exceeding the standard set by the Board 
must be achieved on a single test administration. TAAS scores must meet or 
exceed exemption standards on the first attempt. The standard set by the Board 
may not exceed a level that is equivalent to a 95 percent probability of passing 
the TASP Test. Effective fall 1997 and until amended by the Board, standards for 
exemption from the TASP are: 
(A) ACT: composite score of 23 with a minimum of 19 on both the English and the 
mathematics tests; or 
(B) SAT: combined verbal and mathematics score of 1070 with a minimum of 500 on 
both the verbal and the mathematics tests (recentered scale for tests taken 
April 1995 and thereafter); or 
(C) SAT: for tests taken prior to April 1995, a combined verbal and mathematics 
score of 970, with a minimum of 420 on the verbal test and 470 on the 
mathematics test; or 
(D) TAAS: a minimum scale score of 1770 on the writing test, a Texas Learning 
Index (TLI) of 86 on the mathematics test and 89 on the reading test. 
(3) An institution may exempt a non-degree-seeking or non-certificate-seeking 
student who will be 55 years of age or older on the first class day of a term or 
semester from the testing requirements imposed by this section as a condition 
for enrollment during that term or semester in a course. 
(4) Students who enroll on a temporary basis in an institution of higher 
education, and are also enrolled in a private or independent institution of 
higher education or an out-of-state institution of higher education or have 
graduated from an institution of higher education, a private or independent 
institution of higher education, or an out-of-state institution of higher 
education may be exempt from the requirements of Texas Education Code, Section 
51.306. 
(5) TASP requirements do not apply to students enrolled in certificate programs 
of one year or less (Level-One, 42 or fewer semester credit hours or the 
equivalent). 
(6) Texas Education Code, Section 51.306(u) specifies that a student who has 
been diagnosed as having dyslexia or a related disorder, as those terms are 
defined by Texas Education Code, Section 38.003, or a specific learning 
disability in mathematics by a qualified professional whose license or 
credentials are appropriate to diagnose the disorder or disability as determined 
by the board, who takes the TASP Test and completes the developmental program 
prescribed by the institution may be required to retake the TASP Test once but 
may not be referred to an additional developmental course or other developmental 
program or precluded from enrolling in an upper-division course or graduating 
because of the student's performance on the test. The alternative tests 
specified in Section 5.313(a)(3) of this title (relating to Eligibility and 
Exemptions) will not qualify a student for the provisions of Texas Education 
Code, Section 51.306(u). 
(7) A student who is a citizen of a country other than the United States and is 
not seeking a degree or Level-Two certificate is exempt from the requirements of 
Texas Education Code, Section 51.306. 
(8) A student who has graduated with a baccalaureate degree from an accredited 
institution of higher education is exempt from the requirements of Texas 
Education Code, Section 51.306. 
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 23, 1998.
TRD-9802656
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

CHAPTER 8.Creation, Expansion, Dissolution, or Conservatorship of Public 
Community/Junior College Districts
SUBCHAPTER A.Definitions
19 TAC sec.8.1
The Texas Higher Education Coordinating Board proposes new Chapter 8, Subchapter 
A, sec.8.1, concerning Creation, Expansion, Dissolution, or Conservatorship of 
Public Community/Junior College Districts (Definitions). The new proposed rules 
are as a result of a complete review, rewriting, and restructuring of current 
Board rules affecting public two-year degree granting institutions. The changes 
will replace repealed rules to improve readability, consistency, and uniformity, 
and will add new rules to address legislation not previously included in Board 
rules. The proposed amendments will not substantially change the operation of 
public two-year degree granting institutions since many of the functions not 
previously addressed by Board rules were in place. Glenda Barron, Assistant 
Commissioner for Community and Technical Colleges has determined that for the 
first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
61.061, 61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Creation, 
Expansion, Dissolution, or Conservatorship of Public Community/Junior College 
Districts (Definitions). 
There were no other sections or articles affected by the proposed amendments.

sec.8.1. Definitions. 
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise: 
(1) Appropriate Authorities (for the purposes of certification of the petition) 
- The independent school district board of trustees, county school board or 
boards, or commissioners' court or courts as outlined under Section 8.30 of this 
title (relating to Legality of the Petition). 
(2) Board or Coordinating Board - The Texas Higher Education Coordinating Board. 
(3) Branch Campuses of community/junior college districts - Operate as out-of-
district units of existing community/junior college districts and provide 
programs as defined in Texas Education Code, Chapter 130 and set out in Section 
8.25 of this title (relating to Provisions Applicable to Each Type of District) 
on an on-going and permanent basis. 
(4) Commissioner of Higher Education or Commissioner - The chief executive 
officer of the Texas Higher Education Coordinating Board.
(5) Extension Center or Extension Facility - Any single or multiple location 
other than the main campus of a community/junior college district and is outside 
the boundaries of the taxing authority of a community/junior college district. 
Extension centers and extension facilities are subject to Chapter 5, Subchapter 
H of this title (relating to Approval of Distance Learning for Public Colleges 
and Universities). 
(6) Full-time Equivalent Students (FTE) - The total number of semester credit 
hours reported by an institution for a long term divided by 15 semester credit 
hours, or total reported annually divided by 30; and for continuing education 
courses, the total number of contact hours reported quarterly by an institution 
divided by 300, or total reported annually divided by 900. 
(7) Governing Board - The body charged with policy direction of any public 
community/junior college district, the technical college system, public lower-
division institutions, public senior college or university, or other educational 
agency, including but not limited to boards of directors, boards of regents, 
boards of trustees, and independent school district boards.
(8) Gross fiscal mismanagement - Includes: 
(A) failure to keep adequate fiscal records, 
(B) failure to maintain proper control over assets, 
(C) failure to discharge fiscal obligations in a timely manner, and 
(D) misuse of state funds. 
(9) Inactive Public Community/Junior College - A public community/junior college 
district that has failed to establish and maintain a community/junior college 
within three years from the date of its authorization. 
(10) Scholastic Population of a proposed community/junior college district - 
Includes all students enrolled in K-12 for the area to be included in the 
district. 
(11) State Conservatorship Board - Board that is appointed by the Governor with 
the consent of the Senate and has the authority, when appointed as conservator 
of an agency, to: 
(A) terminate the employment of any employee whose conduct the board determines 
contributed to the condition that caused the conservatorship,
(B) employ personnel for the agency, 
(C) change the agency's organization or structure as necessary to alleviate the 
conditions that caused the conservatorship, and 
(D) contract with persons for management or administrative services necessary to 
effect the conservatorship. 
(12) Technical - Credit courses in programs of up to two years in length leading 
to applied associate degrees or certificates.
(13) Vocational - Terminal continuing education courses or programs leading 
directly to employment in semi-skilled and skilled occupations.
(14) Workforce Education - Vocational and technical courses and programs that 
lead to initial or continuing licensure, applied associate degrees, or 
certificates.
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 25, 1998.
TRD-9802811
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER B.Creation of a Public Community/Junior College District
19 TAC sec.sec.8.21-8.36
The Texas Higher Education Coordinating Board proposes new Chapter 8, Subchapter 
B, sec.8.21 - sec.8.36 concerning Creation, Expansion, Dissolution, or 
Conservatorship of Public Community/Junior College Districts (Creation of a 
Public Community/Junior College District). The new proposed rules are as a 
result of a complete review, rewriting, and restructuring of current Board rules 
affecting public two-year degree granting institutions. The changes will replace 
repealed rules to improve readability, consistency, and uniformity, and will add 
new rules to address legislation not previously included in Board rules. The 
proposed amendments will not substantially change the operation of public two-
year degree granting institutions since many of the functions not previously 
addressed by Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
61.061, 61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Creation, 
Expansion, Dissolution, or Conservatorship of Public Community/Junior College 
Districts (Creation of a Public Community/Junior College Disitrict).
There were no other sections or articles affected by the proposed amendments.

sec.8.21.Purpose. 
This subchapter outlines the process the Coordinating Board shall use in 
determining the need for a new public community/junior college district, and 
provides specific procedures communities are to follow in requesting approval 
from the Board for the creation of a public community/junior college district 
and the holding of an election to establish the district. 

sec.8.22. Authority. 
Texas Education Code, Sections 61.051(b)(c), 61.053, 61.060, 61.061, 61.062, 
130.001, 130.003, and 130.004, and Chapter 130, Subchapter B and C, authorize 
the Coordinating Board to adopt policies, enact regulations, and establish rules 
for the creation of public community/junior college districts. The provisions 
direct the Board to determine the need for the public community/junior college 
district and the ability of the jurisdiction to provide adequate local financial 
support. The Board shall determine whether programs in the proposed institution 
will create unnecessary duplication or seriously harm programs in existing 
community/junior college districts. The Board must consider the needs and 
welfare of the state as a whole, as well as the welfare of the community 
involved, when authorizing the creation of a community/junior college district.

sec.8.23. A Community/Junior College District Coextensive with an Independent 
School District or a Union Community/Junior College District. 
(a) A community/junior college district may be established by: 
(1) any independent school district or city which has assumed control of its 
schools; 
(2) any city which has assumed control of its schools;
(3) two or more contiguous common school districts; or
(4) a combination composed of one or more independent schools districts with one 
or more common school districts of contiguous territory.
(b) The proposed community/junior college district must have a minimum assessed 
valuation (as defined in the Texas Tax Code, Chapter 1, Section 1.004) of not 
less than $2.5 billion and a total scholastic population of not less than 15,000 
in the school year preceding the date of the Letter of Intent as set out in 
Section 8.27 of this title (relating to Application Procedures) for the proposed 
community/junior college district. A petition for an election to create a 
district of this type must be signed by not less than 10 percent of the 
qualified voters in the proposed district. 

sec.8.24. A Single-County or a Joint-County Community/Junior College District. 
(a) A county community/junior college district may be established by any county 
in the state. The proposed community/junior college district must have a minimum 
assessed valuation (as defined in the Texas Tax Code, Chapter 1, Section 1.004) 
of not less than $2.5 billion, and a total scholastic population of not less 
than 15,000 in the school year preceding the date of the Letter of Intent as set 
out in Section 8.27 of this title (relating to Application Procedures) for the 
proposed community/junior college district. A petition for an election to create 
a district of this type must be signed by not less than 10 percent of the 
qualified voters of the county. 
(b) A joint-county community/junior college district may be established by any 
combination of contiguous counties in the state. The proposed community/junior 
college district must have a minimum assessed valuation (as defined in the Texas 
Tax Code, Chapter 1, Section 1.004) of not less than $2.5 billion, and a total 
scholastic population of not less than 15,000 in the school year preceding the 
date of the Letter of Intent as set out in Section 8.27 of this title (relating 
to Application Procedures) for the proposed community/junior college district. A 
petition for an election to create a district of this type must be signed by not 
less than 10 percent of the qualified voters of each of the counties in the 
proposed district. 

sec.8.25. Provisions Applicable to Each Type of District. 
The following additional provisions are applicable to each type of proposed 
community/junior college district: 
(1) The proposed community/junior college must be planned as a comprehensive 
two-year institution primarily serving its local taxing district and service 
area (as defined in the Texas Education Code, Chapter 130, Subchapter J), 
offering: 
(A) technical programs up to two years in length leading to associate degrees or 
certificates; 
(B) vocational programs leading directly to employment in semi-skilled and 
skilled occupations; 
(C) freshman and sophomore courses in arts and sciences, including the state-
mandated core curriculum; 
(D) continuing adult education programs for occupational or cultural upgrading; 
(E) compensatory education programs designed to fulfill the commitment of an 
admissions policy allowing the enrollment of disadvantaged students; 
(F) a continuing program of counseling and guidance designed to assist students 
in achieving their individual educational goals; 
(G) workforce development programs designed to meet local and statewide needs; 
(H) adult literacy and other basic skill programs for adults; and 
(I) such other programs as may be prescribed by the Coordinating Board or local 
governing boards in the best interest of postsecondary education in Texas. 
(2) Substantial evidence must be presented indicating that the proposed 
community/junior college shall reach a minimum enrollment of 1,000 full-time 
equivalent students within three years of the date of its authorization. 
(3) Evidence must be given that the proposed community/junior college district 
shall be eligible to receive a proportionate share of the legislative 
appropriation for public community/junior colleges. Eligibility criteria for 
legislative appropriations are set out in Texas Education Code, Section 130.003. 

sec.8.26. Creation of a Local Steering Committee. 
(a) A local group of citizens interested in establishing a community/junior 
college district shall appoint a Steering Committee of at least seven citizens 
to provide leadership on behalf of the community/junior college effort. 
(b) The Steering Committee shall be composed of a cross-section of the 
population in the area, with representation from major civic groups and business 
and industry. A chair, co-chair, and secretary shall be appointed, along with 
any other officers who may be of assistance to the committee. Where the proposed 
community/junior college district is to be coextensive with the independent 
school district, the local board of trustees may serve as the Steering 
Committee. 
(c) The duties of the Steering Committee shall include the following: 
(1) serve as liaison between the local community and the Board;
(2) be responsible for conducting a feasibility study and survey of the needs 
and potential for a community/junior college district in the area; 
(3) provide information to the community which, at a minimum, describes the 
role, mission, and purpose of a public community/junior college; 
(4) summarize and evaluate the results of the feasibility study and survey and 
formulate conclusions for submission to the Commissioner;
(5) prepare and circulate a petition for an election to establish a 
community/junior college district; and 
(6) present the appropriately signed petition as set out in Section 8.30(a) of 
this title (relating to Legality of the Petition) for certification in 
compliance with the Texas Education Code, Section 130.012, or Sections 130.033, 
130.034, and 130.035. 

sec.8.27. Application Procedures.
The Steering Committee shall file a Letter of Intent with the Commissioner as 
soon as practicable, but no less than six months prior to the quarterly Board 
meeting at which the Steering Committee elects to submit the certified petition 
and a request for approval to hold an election. 

sec.8.28. Conduct of a Local Feasibility Study and Survey. 
(a) A local feasibility study consisting of a survey of need, potential student 
clientele, and financial ability shall be carried out under the auspices of the 
Steering Committee. This feasibility study may be conducted either by the 
Steering Committee or by professionals. 
(b) Board staff shall offer advice and technical assistance to the Steering 
Committee under the direction of the Commissioner. When the feasibility study is 
conducted by a professional individual or research organization, the Steering 
Committee shall fully advise the Commissioner prior to initiating the study. 
(c) The feasibility study shall be made in consultation with the Board staff 
and, upon completion, be submitted to the Commissioner. The Commissioner, in 
consultation with Board staff, shall determine if further documentation or 
clarification is needed to supplement the information presented in the 
feasibility study. 
(d) The feasibility study shall be reviewed by the Board, along with other 
information it deems appropriate, in determining whether the criteria as set out 
in Section 8.32 of this title (relating to Standards and Board Procedure for 
Approval) have been met. 

sec.8.29.Circulation of the Petition.
(a) The Steering Committee shall be responsible for the circulation of a 
petition for authorization of an election to establish a community/junior 
college district. At a minimum, the petition shall include: the amounts of 
proposed bonds, bond tax rate ceiling to be proposed, and maintenance tax limits 
(not to exceed the limits provided in the Texas Education Code, Section 130.122) 
that shall appear on the ballot in the event an election is authorized.
(b) The petition must incorporate all requirements as set forth in the Texas 
Election Code, Chapter 277. 

sec.8.30.Legality of the Petition.
(a) After the petition has been circulated among the electorate and has been 
signed by not less than 10 percent of the qualified electors of the proposed 
district, the petition shall be verified by the appropriate authorities who have 
the duty of verifying the legality of the petition.
(1) In the case of community/junior college district coextensive with an 
independent school district or city which has assumed control of its school, the 
petition shall be presented to the school district's board of trustees. 
(2) In the case of a union, single-county, or joint county community/junior 
college district, the petition shall be presented to the county school board if 
the proposed district encompasses a single county, or county school boards of 
the respective counties if the proposed district encompasses more than one 
county. If there is no county school board or school boards, the petition shall 
be presented to the commissioners' court(s) of the county or counties involved. 
(b) It shall be the duty of the appropriate authorities to pass upon the 
legality of the petition and the genuineness of the same. 

sec.8.31.Presentation of the Certified Petition to the Board. 
(a) When the petition has been certified, it shall be presented by the 
appropriate authorities to the Commissioner who then shall present it to the 
Board.
(b) After the petition and any additional documentation or information are 
presented to the Commissioner, a minimum of 90 days must elapse between the date 
on which the petition and supporting documents are received by the Commissioner 
and the quarterly meeting of the Board when the petition will be considered. 

sec.8.32. Standards and Board Procedure for Approval. 
(a) The Texas Education Code, Section 130.013 and Section 130.036, requires the 
Board to consider the needs and the welfare of the state as a whole, the 
geographic location of existing colleges, as well as the welfare of the 
community involved, before authorizing an election to create a new 
community/junior college district. The Board shall determine whether programs in 
a proposed community/junior college district will create unnecessary duplication 
or seriously harm programs in existing community/junior college districts.
(b) The Board shall apply the following criteria when considering the creation 
of a new community/junior college district: 
(1) Demographic and economic characteristics of the proposed district, such as 
(A) population trends by age group; 
(B) economic development trends and projections; and 
(C) employment trends and projections (supply-demand data).
(2) Potential student clientele, including 
(A) educational levels by age group; and 
(B) college-bound data (i.e., trends by age group). 
(3) The financial status of the proposed district and the state as a whole, 
including: 
(A) any projected growth or decline in the tax base; and 
(B) trends in state appropriations for community/junior colleges and other 
institutions of higher education. 
(4) Projected programs and services based on economic and population trends. 
(5) Proximity and impediments to programs and services of existing institutions 
of higher education, such as: 
(A) identification of institutions that could be affected by a new 
community/junior college; 
(B) documentation of existing programs and services, 
(i) on the campuses of nearby institutions of higher education,
(ii) available to citizens within a 50-mile radius of the proposed district, and 
(iii) offered in the proposed district by existing institutions of higher 
education; 
(C) financial limitations on existing institutions of higher education 
inhibiting the offering of programs and services in the proposed district; 
(D) availability of facilities, libraries, and equipment for institutions to 
offer classes in the proposed district; 
(E) distance and traffic patterns to existing institutions of higher education; 
(F) effect on enrollment of existing institutions of higher education; and 
(G) effect on financing of existing institutions of higher education. 
(6) Alternative approaches to meeting the need for educational services in the 
proposed community/junior college district include, but are not limited to: 
(A) out-of-district classes offered in the district by existing institutions of 
higher education; 
(B) transportation of students to nearby institutions of higher education; and 
(C) contract programs and services from combinations of institutions of higher 
education. 
(c) The Board's Committee on Community and Technical Colleges may conduct one or 
more public hearings in the proposed district to: 
(1) assess public sentiment regarding creation of the district;
(2) determine whether programs in the proposed district would create unnecessary 
duplication or seriously harm programs in existing community/junior college 
districts or other institutions of higher education in the area; and 
(3) assess the potential impact of the proposed district on existing 
community/junior colleges or other institutions of higher education in the area 
and on the State of Texas. 
(d) After the feasibility study and other documentation and information have 
been reviewed by the Committee on Community and Technical Colleges and Board 
staff, a report from the Board staff shall be submitted to the Commissioner 
indicating whether the criteria as set out in Section 8.32 of this title 
(relating to Standards and Board Procedure for Approval) have been met. The 
report shall also include a recommendation for approval or denial of the request 
for approval to hold an election to create a public community/junior college 
district, but shall not be binding on the Commissioner or the Board. 

sec.8.33.Action and Order of the Board. 
(a) Board action on the request for approval to hold an election to create a 
public community/junior college district shall be taken at the next quarterly 
Board meeting. In making its decision, the Board shall consider the needs of the 
community, the potential impact on other institutions of higher education, and 
the welfare of the state as a whole. 
(b) A resolution shall be entered in the minutes of the Board and conveyed in 
writing by the Commissioner to the Steering Committee. 

sec.8.34. Calling the Election; Submission of Questions.
If the Board authorizes an election to establish a community/junior college 
district, it shall then be the duty of the district or city school board or the 
commissioners' court or courts to enter an order for an election to be held in 
the proposed district at the next authorized election date as provided in the 
Texas Election Code, Section 41.001, to determine whether or not such 
community/junior college district be created and formed, and to submit the 
questions of issuing bonds and levying bond taxes, and levying maintenance taxes 
in the event the district is created. The order shall contain a description of 
the independent school district or districts, county or counties whose 
boundaries shall be coextensive with the community/junior college district to be 
formed, and fix the date of the election. 

sec.8.35.Election. 
A majority of the electors in the proposed district, voting in the election, 
shall determine the question of creation of the community/junior college 
district submitted in the order, the election of the original trustees, and the 
questions of issuing bonds and levying taxes. A majority of the electors voting 
in such election shall determine such questions submitted in the order.

sec.8.36. Resubmissions of Applications.
Should an election to create a new community/junior college district fail, a 
period of 12 months must elapse before resubmission of the proposition to the 
Board. The Board shall require a strong showing of need and unusual 
circumstances before approving resubmission before the 12 months have elapsed.
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 25, 1998.
TRD-9802812
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER C.Dissolution of an Inactive Public Community/Junior College District
19 TAC sec.sec.8.51-8.56
The Texas Higher Education Coordinating Board proposes new Chapter 8, Subchapter 
C, sec.8.51 - sec.8.56, concerning Creation, Expansion, Dissolution, or 
Conservatorship of Public Community/Junior College Districts (Dissolution of an 
Inactive Public Community/Junior College District). The new proposed rules are 
as a result of a complete review, rewriting, and restructuring of current Board 
rules affecting public two-year degree granting institutions. The changes will 
replace repealed rules to improve readability, consistency, and uniformity, and 
will add new rules to address legislation not previously included in Board 
rules. The proposed amendments will not substantially change the operation of 
public two-year degree granting institutions since many of the functions not 
previously addressed by Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
61.061, 61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Creation, 
Expansion, Dissolution, or Conservatorship of Public Community/Junior College 
Districts (Dissolution of an Inactive Public Community/Junior College District). 
There were no other sections or articles affected by the proposed amendments.

sec.8.51. Purpose. 
This subchapter sets out the procedures for dissolution by the Coordinating 
Board of an inactive community/junior college district which has failed to 
maintain or establish a community/junior college within three years from the 
date of its authorization. 

sec.8.52. Authority. 
This subchapter is adopted pursuant to authority in Texas Education Code, 
Sections 61.060, 61.061, 61.062, and 130.001. 

sec.8.53.Initiation of Consideration of Action. 
(a) An action to dissolve an inactive public community/junior college district 
may be initiated: 
(1) by the Commissioner of Higher Education; 
(2) by petition signed by ten or more voting-eligible citizen residents in the 
district and delivered to the Commissioner; 
(3) by a member of the Texas Legislature; or 
(4) by any other party or individual authorized by the Commissioner. 
(b) The Commissioner shall provide timely written notice of an action to 
dissolve an inactive public community/junior college district to the chair of 
the governing board of the district. 

sec.8.54. Action by the Board. 
(a) At its next scheduled meeting following initiation of an action to dissolve 
an inactive district, the Coordinating Board may pass a resolution dissolving 
the inactive public community/junior college district. The resolution must set 
forth: 
(1) the legal history of the district, including the date of authorization, 
period of inactivity, and dissolution; 
(2) the outstanding obligations of the district, if any, of which the Board has 
knowledge; 
(3) the territory of the district; and 
(4) the cause in dissolution. 
(b) The resolution dissolving the inactive public community/junior college 
district shall be entered in the minutes of the Board and conveyed in writing by 
the Commissioner to the governing board or responsible officials of the affected 
district. 

sec.8.55.Protest; Notice of Protest.
(a) Written protest of an action to dissolve an inactive public community/junior 
college district must be delivered to the Commissioner and may be made by: 
(1) any voting-eligible citizen resident in the inactive district;
(2) any person, business, corporation, or governmental body holding bonds, 
debts, or valid contracts with the district; 
(3) any member of the Coordinating Board; or 
(4) any member of the governing board of the inactive district. 
(b) Notice of protest must be sent to the Commissioner within 30 days after the 
date of the quarterly Coordinating Board at which the resolution to dissolve the 
inactive community/junior college district was passed. If no timely protest is 
received, the resolution shall become final without further Board action on the 
31st day after the quarterly board meeting at which the resolution was passed. 

sec.8.56. Action and Order of the Board. 
(a) If a timely protest is made to the Commissioner, the Board shall consider it 
at its next quarterly meeting following filing of the notice of protest. The 
Board may: 
(1) hear cause for not dissolving the district; 
(2) delay consideration until all affected parties have been heard; 
(3) abandon consideration of the matter without action; or 
(4) affirm the dissolution. 
(b) The Board's decision regarding the protest shall be recorded in the minutes 
of the meeting and notice of the decision shall be sent by the Commissioner to 
the party filing the protest and to the chair of the governing board of the 
district.
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 25, 1998.
TRD-9802813
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER D.Formation of a Branch Campus
19 TAC sec.sec.8.71-8.76
The Texas Higher Education Coordinating Board proposes new Chapter 8, Subchapter 
D, sec.8.71 - sec.8.76 concerning Creation, Expansion, Dissolution, or 
Conservatorship of Public Community/Junior College Districts (Formation of a 
Branch Campus). The new proposed rules are as a result of a complete review, 
rewriting, and restructuring of current Board rules affecting public two-year 
degree granting institutions. The changes will replace repealed rules to improve 
readability, consistency, and uniformity, and will add new rules to address 
legislation not previously included in Board rules. The proposed amendments will 
not substantially change the operation of public two-year degree granting 
institutions since many of the functions not previously addressed by Board rules 
were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
61.061, 61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Creation, 
Expansion, Dissolution, or Conservatorship of Public Community/Junior College 
Districts (Formation of a Branch Campus). 
There were no other sections or articles affected by the proposed amendments.

sec.8.71.Purpose. 
This subchapter provides rules and regulations for requesting approval from the 
Coordinating Board to establish, authorize, and operate a branch campus.

sec.8.72.Authority. 
Texas Education Code, Sections 61.051(c), 61.053, 61.061, 61.062(c)-(d), 
130.001(b)(3)-(4), 130.086, and 130.87, authorize the Coordinating Board to 
adopt policies, enact regulations, and establish rules to define, establish, and 
authorize a branch campus and provide rules and regulations for a public 
community/junior college district to operate such a campus. 

sec.8.73.Provisions for Conversion of an Out-of-District Extension Center or 
Extension Facility to a Branch Campus.
(a) The governing board of a community/junior college district may establish and 
operate a branch campus through conversion of an extension center or extension 
facility, provided that each course and program has been approved and is subject 
to the continuing approval of the Coordinating Board.
(b) Consistent with the statutory purposes and role and mission of a public 
community/junior college as set out under the Texas Education Code, Section 
130.0011 and Section 130.003(e) and in accordance with Board rules and 
guidelines that no community/junior colleges be established without sufficient 
local support, whenever any out-of-district extension center or extension 
facility reaches an enrollment of 1,000 full-time equivalent students in state-
supported credit and non-credit courses, one of the following options must be 
exercised: 
(1) The out-of-district extension center or extension facility shall establish 
its own community/junior college district; 
(2) The out-of-district extension center or extension facility shall merge with 
the parent district by annexation; or 
(3) An extension center or extension facility shall be converted to a branch 
campus if a local tax is levied or other local community and/or economic support 
is sufficient to, as determined by a Coordinating Board appointed team of 
community college presidents, 
(A) offer an array of programs of quality and breadth, and
(B) maintain and operate the branch campus facilities and equipment. 

sec.8.74.Application and Approval Procedures. 
(a) Each institution operating an out-of-district extension center or extension 
facility that exceeds 1,000 full-time equivalent students in state-supported 
credit and non-credit courses and chooses neither to establish its own 
community/junior college district nor to annex to the parent district, must have 
its governing board submit a Letter of Application to the Commissioner for 
designation or conversion of the facility/center as a branch campus.
(b) A self-study must be performed by the district to assess whether the 
proposed branch campus meets the criteria outlined below. The self-study and the 
extension center or extension facility shall be reviewed by a Board-appointed 
team for the purposes of documenting that it meets the following standards and 
criteria for quality instruction and support services, and as specified in 
Section 5.153 of this title (relating to Standards and Criteria for Distance 
Learning), and as required by the Commission on Colleges of the Southern 
Association of Colleges and Schools. 
(1) Role and Mission; Purpose. In its program aspects, a branch campus shall be 
equivalent to a public community/junior college. Therefore, the branch campus 
must provide: 
(A) technical programs up to two years in length leading to associate degrees or 
certificates; 
(B) vocational programs leading directly to employment in semi-skilled and 
skilled occupations; 
(C) freshman and sophomore courses in arts and sciences, including the state-
mandated core curriculum; 
(D) continuing adult education programs for occupational or cultural upgrading;
(E) compensatory education programs designed to fulfill the commitment of an 
admissions policy allowing enrollment of disadvantaged students;
(F) a continuing program of counseling and guidance designed to assist students 
in achieving their individual educational goals; 
(G) work force development programs designed to meet local and statewide needs; 
(H) adult literacy and other basic skills programs for adults; and 
(I) such other purposes as may be prescribed by the Coordinating Board or local 
governing boards in the best interest of postsecondary education in Texas. 
(2) Minimum Size. 
(A) The minimum enrollment necessary to establish a branch campus shall be 1,000 
full-time equivalent students in state-supported credit and non-credit courses 
for the most recent fall semester. 
(B) Exceptions for approval by the Board of out-of-district branch campuses of 
less than 1,000 full-time equivalent students shall be considered only if: 
(i) there is a local tax to support the proposed branch campus, or 
(ii) the Board has determined that the community and/or economic support is 
sufficient to offer an array of programs of quality and breadth.
(3) Programs and Courses. All courses, programs, and degrees shall be offered in 
the name of the parent district, and shall be subject to the following criteria: 
(A) Courses and programs must meet the role, mission, and purposes described in 
subsection (1) of this section. 
(B) Courses and programs must be developed and operated with the on-going 
assistance and involvement of the parent district faculty and staff. 
(C) Instructional faculty credentials, full-time/part-time faculty ratios, 
teaching loads, faculty performance evaluation and effectiveness, student 
accessibility to faculty, etc., must be reviewed to ensure that these elements 
contribute to the quality of courses and programs offered. 
(4) Description of Staffing Plan. There must be sufficient support staff to meet 
the needs of faculty and students at the branch campus. 
(5) Funding. 
(A) The branch campus shall be supported either by means of a branch campus 
maintenance tax as set forth in Chapter 8, Subchapter E of this title (relating 
to Branch Campus Maintenance Tax), or by a continuing local source of community 
and/or economic support. 
(B) If a local tax is not levied, local community and/or economic support must 
be furnished at a level sufficient to provide an array of programs of quality 
and breadth and all facilities and equipment needed at the proposed branch 
campus location. "Facilities" include the operation and maintenance of the 
physical plant plus any rehabilitation and repairs. Local community and/or 
economic support may be "in kind." Local community and/or economic support may 
not be made up entirely of student tuition and fees, but out-of-district student 
charges should be set at an amount adequate to cover the direct and indirect 
costs of instruction and support services not covered by other local support or 
state funding generated by the out-of-district location. 
(C) Appropriate accounts for the branch campus must be kept and financial 
reports submitted as required for community/junior college districts.
(D) State aid shall be earned according to appropriated formula rates for in-
district courses. 
(6) Regional Higher Education Council Review and Certification. The Regional 
Higher Education Council within which the proposed branch campus is to be 
located must review the branch campus request only if the proposed branch campus 
is within a shared service area designated by statute. Member institutions must 
discuss the proposal with all Councils affected and the minutes shall reflect 
the discussions. If appropriate, a recommendation for approval or disapproval 
shall be submitted to the Commissioner, but shall not be binding on the 
Commissioner or the Board. 
(c) The Board's Committee on Community and Technical Colleges may conduct one or 
more public hearings on the proposed branch campus to:
(1) assess public sentiment regarding the proposed branch campus; 
(2) determine whether programs in the proposed branch campus will create 
unnecessary duplication or seriously harm programs in existing community/junior 
college districts or other institutions of higher education in the area; and 
(3) assess the potential impact of the proposed branch campus on existing 
community/junior colleges or other institutions of higher education in the area 
and on the State of Texas. 
(d) After the self-study as outlined in Section 8.74(b) of this title (relating 
to Application and Approval Procedures) has been reviewed and a site visit 
conducted by the Committee on Community and Technical Colleges and Board staff, 
a report from the Board staff shall be submitted to the Commissioner indicating 
whether the criteria as set out in subsection (b) of this section have been met. 
The report shall include a recommendation for approval or denial of the request 
for the establishment of the proposed branch campus, but shall not be binding on 
the Commissioner or the Board. 

sec.8.75. Action and Order of the Board. 
(a) Board action on the request for approval for establishment of the branch 
campus shall be taken at the next regularly scheduled quarterly Board meeting. 
In making its decision, the Board shall consider the needs of the district, the 
needs of the community served by the proposed branch campus, the potential 
impact on other institutions of higher education, and the welfare of the state 
as a whole. 
(b) A resolution shall be entered in the minutes of the Board and conveyed in 
writing by the Commissioner to the governing board of the community/junior 
college district. 
(c) Branch campus designation shall be used only upon approval by the Board. 
(d) If the Board approves establishment of a branch campus, the governing board 
of the community/junior college district may accept or acquire by purchase or 
rent land and facilities in the name of said institution.

sec.8.76.Reclassification. 
(a) The territory within which a branch campus of a community/junior college 
operates may elect to apply to the Board to establish its own community/junior 
college district at any time in accordance with Board rules and guidelines for 
establishing such an institution.
(b) The Board may withdraw approval for a branch campus whenever the Board finds 
evidence of: 
(1) a local effort to: 
(A) establish its own community/junior college district (Such local effort shall 
be reviewed by the Board according to the criteria as set forth in Subchapter B 
of this title relating to the Creation of a Public Community/Junior College 
District) as to the feasibility of establishing a separate community/junior 
college district), or 
(B) merge with the parent district; 
(2) failure to maintain the required level of local community and/or economic 
support; or 
(3) failure to maintain the standards and criteria of Board rules and 
regulations.
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 25, 1998.
TRD-9802814
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER E.Branch Campus Maintenance Tax
19 TAC sec.sec.8.91-8.103
The Texas Higher Education Coordinating Board proposes new Chapter 8, Subchapter 
E, sec.8.91 - sec.8.103 concerning Creation, Expansion, Dissolution, or 
Conservatorship of Public Community/Junior College Districts (Branch Campus 
Maintenance Tax). The new proposed rules are as a result of a complete review, 
rewriting, and restructuring of current Board rules affecting public two-year 
degree granting institutions. The changes will replace repealed rules to improve 
readability, consistency, and uniformity, and will add new rules to address 
legislation not previously included in Board rules. The proposed amendments will 
not substantially change the operation of public two-year degree granting 
institutions since many of the functions not previously addressed by Board rules 
were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
61.061, 61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Creation, 
Expansion, Dissolution, or Conservatorship of Public Community/Junior College 
Districts (Branch Campus Maintenance Tax). 
There were no other sections or articles affected by the proposed amendments.

sec.8.91.Purpose. 
This subchapter provides rules and regulations setting out the procedure by 
which a school district or county may levy a public community/junior college 
district branch campus maintenance tax. The amount of a branch campus 
maintenance tax shall not exceed five cents on each $100 valuation of all 
taxable property in the jurisdiction.

sec.8.92.Authority.
Texas Education Code, Sections 61.053, 130.001(b)(3)-(4), and 130.087, authorize 
the Coordinating Board to adopt policies, enact regulations, and establish rules 
for a school district(s) or county(ies) to request authorization from the Board 
to hold an election to establish and levy a branch campus maintenance tax. 

sec.8.93. Creation of a Local Steering Committee. 
(a) A local group of citizens interested in establishing a branch campus 
maintenance tax jurisdiction shall appoint a Steering Committee of at least 
seven citizens to provide leadership on behalf of the tax effort.
(b) The Steering Committee shall be composed of a cross-section of the 
population of the area, with representation from major civic groups and business 
and industry. A chair, co-chair, and secretary shall be appointed, along with 
any other officers who may be of assistance to the committee. Where the proposed 
branch campus maintenance tax jurisdiction is to be located in an independent 
school district, the district board of trustees may serve as the Steering 
Committee. 
(c) The Steering Committee shall: 
(1) serve as liaison between the local community, the college district which 
would operate the branch campus, and the Board; 
(2) be responsible for conducting a feasibility study and a survey of the needs 
and potential of the area for a branch campus; 
(3) provide information to the community which, at a minimum, describes the 
nature and purpose of a branch campus; 
(4) summarize and evaluate the results of the feasibility study and survey and 
formulate conclusions for submission to the Commissioner;
(5) prepare and circulate a petition to obtain not fewer than five percent of 
the qualified voters of the proposed branch maintenance tax jurisdiction; and 
(6) present the appropriately signed petition as set out in Section 8.30(a) of 
this title (relating to Legality of the Petition) to appropriate authorities for 
certification in compliance with Texas Education Code, Section 130.087. 

sec.8.94. Application Procedures.
The Steering Committee and the community/junior college district that is 
planning the branch campus shall jointly file a Letter of Intent with the 
Commissioner as soon as practical. The staff of the Board shall offer advice and 
technical assistance to the Steering Committee under the direction of the 
Commissioner on procedures and requirements. 

sec.8.95. Conduct of a Local Feasibility Study and Survey. 
(a) A local feasibility study consisting of a survey of need, potential student 
clientele, financial ability of the jurisdiction, and other pertinent data must 
be carried out under the auspices of the Steering Committee and the college 
which shall operate the branch campus. This feasibility study may be conducted 
either by the Steering Committee or by professionals. 
(b) Board staff shall offer advice and technical assistance to the Steering 
Committee under the direction of the Commissioner. When the feasibility study is 
conducted by a professional individual or research organization, the Steering 
Committee shall fully advise the Commissioner prior to initiating the study. 
(c) The feasibility study shall be made in consultation with the Board staff 
and, upon completion, be submitted to the Commissioner. The Commissioner, in 
consultation with Board staff, shall determine if further documentation or 
clarification is needed to supplement the information presented in the 
feasibility study. 
(d) The feasibility study shall be reviewed by the Board, along with other 
information it deems appropriate, in determining whether the criteria as set out 
in Section 8.89 of this title (relating to Standards and Board Procedure for 
Approval) have been met. 

sec.8.96.Circulation of a Petition.
(a) The Steering Committee shall be responsible for the circulation of a 
petition for authorization of an election to levy a public community/junior 
college branch campus maintenance tax. At a minimum, the petition shall include 
the maintenance tax limits that shall appear on the ballot in the event an 
election is authorized. 
(b) The petition must incorporate all requirements as set forth in the Texas 
Election Code, Chapter 277. 

sec.8.97. Legality of the Petition.
(a) After the petition has been circulated among the electorate and has been 
signed by not less than five percent of the qualified electors of the proposed 
branch maintenance tax jurisdiction, the petition shall be presented to the 
appropriate authorities who have the duty of verifying the legality of the 
petition. 
(b) It shall be the duty of the appropriate authorities to pass upon the 
legality of the petition and the genuineness of the same. 

sec.8.98. Presentation of a Certified Petition to the Board. 
(a) When the petition has been certified, it shall be presented by the 
appropriate authorities to the Commissioner who shall then present it to the 
Board. 
(b) After the petition and any additional documentation or information are 
presented to the Commissioner, a minimum of 45 days must elapse between the date 
on which the petition and supporting documents are received by the Commissioner 
and the quarterly meeting of the Board when the Board will consider the 
petition. 

sec.8.99. Standards and Board Procedure for Approval. 
(a) The Texas Education Code, Section 130.087, requires the Board to determine 
that 
(1) the branch campus maintenance tax rate does not exceed five cents on each 
$100 valuation of all taxable property; 
(2) a certified petition has been submitted by the appropriate authorities to 
the Board; and 
(3) the proposed tax is feasible and desirable. 
(b) The Board shall apply the following criteria when considering the 
appropriateness for the levying of a branch campus maintenance tax: 
(1) Demographic and economic characteristics of the jurisdiction seeking to 
establish the maintenance tax, such things as: 
(A) population trends by age group; 
(B) economic development trends and projection; and 
(C) employment trends and projection (i.e., supply-demand data). 
(2) Potential student clientele, including: 
(A) educational levels by age group; and 
(B) college-bound data (i.e., trends by age group). 
(3) The financial status of the proposed jurisdiction to be taxed and the state 
as a whole, including: 
(A) any projected growth or decline in the tax base; and 
(B) trends in state appropriations for community/junior colleges and other 
institutions of higher education. 
(4) Projected programs and services for the proposed jurisdiction based on 
economic and population trends. 
(5) Proximity and impediments to programs and services to existing institutions 
of higher education such as: 
(A) identification of institutions that could be effected by a new branch 
campus, and 
(B) documentation of existing programs and services: 
(i) on the campuses of nearby institutions of higher education,
(ii) available to citizens within a 50 mile radius of the proposed jurisdiction, 
and 
(iii) offered in the proposed jurisdiction by existing institutions of higher 
education; 
(C) financial limitations on existing institutions of higher education 
inhibiting the offering of programs and services in the proposed jurisdiction; 
(D) availability of facilities, libraries, and equipment for institutions to 
offer classes in the proposed jurisdiction; 
(E) distance and traffic patterns to existing institutions of higher education; 
(F) effect on enrollments of existing institutions of higher education; and 
(G) effect on financing of existing institutions of higher education. 
(c) The Board's Committee on Community and Technical Colleges may conduct one or 
more public hearings in the proposed jurisdiction to:
(1) assess public sentiment regarding the levying of a branch campus maintenance 
tax; 
(2) determine whether programs in the proposed jurisdiction would create 
unnecessary duplication or seriously harm programs in existing community/junior 
college districts or other institutions of higher education in the area; and 
(3) assess the potential impact of the proposed jurisdiction on existing 
community/junior colleges or other institutions of higher education in the area 
and on the State of Texas. 
(d) After the self-study has been reviewed and, if applicable, a site visit 
conducted by the Committee on Community and Technical Colleges and Board staff, 
a report from the Board staff shall be submitted to the Commissioner indicating 
whether the criteria as set out in subsection (b) of this section have been met. 
The report shall include a recommendation for approval or denial of the request 
for approval to hold an election to levy a branch campus maintenance tax, but 
shall not be binding on the Commissioner or the Board. 

sec.8.100. Action and Order of the Board. 
(a) Board action on the request for approval to hold an election to levy a 
branch campus maintenance tax shall be taken at the next quarterly Board 
meeting. In making its decision, the Board shall consider the needs of the 
community/junior college and the district, the needs of the community or 
communities served by the branch campus maintenance tax jurisdiction, and the 
welfare of the state as a whole. 
(b) A resolution shall be entered in the minutes of the Board and conveyed in 
writing by the Commissioner to the governing board of the community/junior 
college district. 

sec.8.101.Calling the Election.
(a) If the Board approves the establishment of the branch campus maintenance 
tax, the governing body of the school district or county shall enter an order 
for an election to be held in the territory under its jurisdiction not less than 
20 days nor more than 60 days after the date on which the order is entered to 
determine whether the branch campus maintenance tax may be levied. In the case 
of the joint school district or joint county elections, by mutual agreement of 
the governing bodies, the elections shall be held on the same date throughout 
the jurisdictions.
(b) The president of the governing board of the school district or the county 
judge, as applicable, shall give notice of the election in the manner provided 
by law for notice by the county judge of general elections.

sec.8.102.Election.
A majority of the electors in the proposed branch campus maintenance tax 
jurisdiction voting in the election shall determine the question of the creation 
of the branch campus maintenance tax jurisdiction submitted in the order. 

sec.8.103.Resubmission of Applications.
Should an election to create a branch campus maintenance tax jurisdiction fail, 
a period of 12 months must elapse before resubmission of the proposition to the 
Board. The Board shall require a strong showing of need and unusual 
circumstances before approving resubmission before the 12 months have elapsed.
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 25, 1998.
TRD-9802815
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER F.Conservatorship of a Public Community/Junior College District
19 TAC sec.sec.8.121-8.123
The Texas Higher Education Coordinating Board proposes new Chapter 8, Subchapter 
F, sec.8.121 - sec.8.123 concerning Creation, Expansion, Dissolution, or 
Conservatorship of Public Community/Junior College Districts (Conservatorship of 
a Public Community/Junior College District). The new proposed rules are as a 
result of a complete review, rewriting, and restructuring of current Board rules 
affecting public two-year degree granting institutions. The changes will replace 
repealed rules to improve readability, consistency, and uniformity, and will add 
new rules to address legislation not previously included in Board rules. The 
proposed amendments will not substantially change the operation of public two-
year degree granting institutions since many of the functions not previously 
addressed by Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
61.061, 61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Creation, 
Expansion, Dissolution, or Conservatorship of Public Community/Junior College 
Districts (Conservatorship of a Public Community/Junior College District).
There were no other sections or articles affected by the proposed amendments.

sec.8.121. Purpose.
This subchapter outlines the procedures the Coordinating Board shall use with 
regard to the conservatorship of a public community/junior college.

sec.8.122. Authority. 
Texas Education Code, Sections 61.051(b)(c)(e), 61.053, 61.060, 61.061, 61.062, 
and 130.001 and the Government Code, Section 2104.031, authorize the 
Coordinating Board to adopt policies, enact regulations, and establish rules for 
action concerning the conservatorship of a public community/junior college when 
requested by the Governor and upon the advice and assistance of the State 
Auditor. 

sec.8.123.Mismanagement Finding; Conservatorship Order. 
(a) On the Governor's request the Coordinating Board, with the advice and 
assistance of the State Auditor, shall determine if a condition of gross fiscal 
mismanagement exists at a public community/junior college.
(1) When a condition of gross fiscal mismanagement is suspected, the Board shall 
appoint a delegation to investigate the fiscal condition of the public 
community/junior college in question. The delegation shall include members of 
the Committee on Community and Technical Colleges and Board staff. The Board 
shall request assistance from the State Auditor's Office to include one of its 
staff members as a member of the delegation. 
(2) Based upon its review of the public community/junior college in the matter 
of gross fiscal mismanagement, the delegation as set out in subsection (1) of 
this section shall make a report to the Commissioner to include, if appropriate, 
a recommendation concerning conservatorship. 
(3) The Commissioner shall make a report and recommendation concerning 
conservatorship to the Board for its consideration at the next quarterly Board 
meeting. 
(b) If the Board finds a condition of gross fiscal mismanagement of a public 
community/junior college, the Governor, by proclamation, may order the State 
Conservatorship Board to act as conservator of the college.
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 23, 1998.
TRD-9802816
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Public Junior Colleges
SUBCHAPTER A.Criteria to be Met in the Creation of Public Junior Colleges
19 TAC sec.sec.9.1-9.4
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas Higher 
Education Coordinating Board or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 9, 
Subchapter A, sec.9.1 - sec.9.4, concerning Criteria to be Met in the Creation 
of Public Junior Colleges. The repeal of the rules are as a result of a complete 
review, rewriting, and restructuring of current Board rules affecting public 
two-year degree granting institutions. The changes will replace repealed rules 
to improve readability, consistency, and uniformity, and will add rules to 
address legislation not previously included in Board rules. The proposed 
amendments will not substantially change the operation of public two-year degree 
granting institutions since many of the functions not previously addressed by 
Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The repeal of the rules is proposed under Texas Education Code, Sections 61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Criteria to be 
Met in the Creation of Public Junior Colleges. 
There were no other sections or articles affected by the proposed amendments.
sec.9.1.Junior College District Coextensive with an Independent School District.
sec.9.2. Union Junior College District. 
sec.9.3. Single-County Or Joint-County Junior College Districts. 
sec.9.4.Provisions Applicable to Each Type of District.
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 25, 1998.
TRD-9802807
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER B.Procedures to be Followed in the Creation of Public Junior Colleges
19 TAC sec.sec.9.21-9.31
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas Higher 
Education Coordinating Board or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 9, 
Subchapter B, sec.9.21 - sec.9.31, concerning Procedures to be Followed in the 
Creation of Public Junior Colleges. The repeal of the rules are as a result of a 
complete review, rewriting, and restructuring of current Board rules affecting 
public two-year degree granting institutions. The changes will replace repealed 
rules to improve readability, consistency, and uniformity, and will add rules to 
address legislation not previously included in Board rules. The proposed 
amendments will not substantially change the operation of public two-year degree 
granting institutions since many of the functions not previously addressed by 
Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The repeal of the rules is proposed under Texas Education Code, Sections 61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Procedures to be 
Followed in the Creation of Public Junior Colleges. 
There were no other sections or articles affected by the proposed amendments.
sec.9.21. Creation of a Local Steering Committee.
sec.9.22. Contact with Coordinating Board. 
sec.9.23.Conduct of a Local Survey.
sec.9.24. Circulation of a Petition.
sec.9.25. Certification of Petition. 
sec.9.26. Presentation of Petition to the Coordinating Board. 
sec.9.27. Action by the Board. 
sec.9.28.Resubmissions of Applications.
sec.9.29. Calling the Election; Submission of Questions.
sec.9.30. Election. 
sec.9.31. Required Taxing Authority.
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 25, 1998.
TRD-9802808
James McWhorter
Assistnant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER C.Procedures for the Dissolution of Dormant Junior
College Districts
19 TAC sec.sec.9.41-9.48
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas Higher 
Education Coordinating Board or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 9, 
Subchapter C, sec.9.41 - sec.9.48, concerning Procedures for the Dissolution of 
Dormant Junior College Districts. The repeal of the rules are as a result of a 
complete review, rewriting, and restructuring of current Board rules affecting 
public two-year degree granting institutions. The changes will replace repealed 
rules to improve readability, consistency, and uniformity, and will add rules to 
address legislation not previously included in Board rules. The proposed 
amendments will not substantially change the operation of public two-year degree 
granting institutions since many of the functions not previously addressed by 
Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The repeal of the rules is proposed under Texas Education Code, Sections 61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Procedures for 
the Dissolution of Dormant Junior College Districts. 
There were no other sections or articles affected by the proposed amendments.
sec.9.41. Initiation of Consideration of Action.
sec.9.42. Notice of Consideration of Action. 
sec.9.43. Protest.
sec.9.44. Notice of Protest. 
sec.9.45. Action if No Protest is Made. 
sec.9.46. Action if Protest is Made. 
sec.9.47. Board Order. 
sec.9.48. Board Minutes.
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 25, 1998.
TRD-9802809
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER K.Guidelines to be Followed in Seeking Authorization to Hold a Public 
Community/Junior College Branch Campus Maintenance Tax Election
19 TAC sec.sec.9.231-9.238
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas Higher 
Education Coordinating Board or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 9, 
Subchapter K, sec.9.231 - sec.9.238 concerning Guidelines to be Followed in 
Seeking Authorization to Hold a Public Community/Junior College Branch Campus 
Maintenance Tax Election. The repeal of the rules are as a result of a complete 
review, rewriting, and restructuring of current Board rules affecting public 
two-year degree granting institutions. The changes will replace repealed rules 
to improve readability, consistency, and uniformity, and will add rules to 
address legislation not previously included in Board rules. The proposed 
amendments will not substantially change the operation of public two-year degree 
granting institutions since many of the functions not previously addressed by 
Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The repeal of the rules is proposed under Texas Education Code, Sections 61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Guidelines to be 
Followed in Seeking Authorization to Hold a Public Community/Junior College 
Branch Campus Maintenance Tax Election 
There were no other sections or articles affected by the proposed amendments.
sec.9.231. Purpose.
sec.9.232. Creation of a Local Steering Committee.
sec.9.233. Contact with Coordinating Board. 
sec.9.234. Conduct of Local Survey.
sec.9.235. Circulation of a Petition.
sec.9.236. Certification of Petition. 
sec.9.237. Presentation of Petition to the Coordinating Board. 
sec.9.238. Action by the Board.
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 25, 1998.
TRD-9802810
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

CHAPTER 10.Instutional Effectiveness in Public Community/Junior College 
Districts
SUBCHAPTER A.Purpose, Authority, and Definitions
19 TAC sec.sec.10.1-10.3
The Texas Higher Education Coordinating Board proposes new Chapter 10, 
Subchapter A, sec.10.1 - sec.10.3 concerning Institutional Effectiveness in 
Public Community/Junior College Districts and Technical Colleges (Purpose, 
Authority, and Definitions). The new proposed rules are as a result of a 
complete review, rewriting, and restructuring of current Board rules affecting 
public two-year degree granting institutions. The changes will replace repealed 
rules to improve readability, consistency, and uniformity, and will add new 
rules to address legislation not previously included in Board rules. The 
proposed amendments will not substantially change the operation of public two-
year degree granting institutions since many of the functions not previously 
addressed by Board rules were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
61.061, 61.062, and 130.001, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Creation, 
Expansion, Dissolution, or Conservatorship of Public Community/Junior College 
Districts (Purpose, Authority, and Definitions). 
There were no other sections or articles affected by the proposed amendments.

sec.10.1. Purpose.
(a) The purpose of this chapter is to provide guidelines for the state-level 
evaluation of public community and technical colleges and other institutions 
providing certificate or associate degree programs through an institutional 
effectiveness process which: 
(1) according to Board approved criteria, assesses and evaluates public 
community and technical colleges and other institutions providing certificate or 
associate degree programs in achieving their statutory missions; and 
(2) provides for the systematic use of evaluation results to continuously 
improve institutional performance, programs, services, and standards of 
operation . 
(b) State-level evaluation 
(1) encourages the continuous improvement of Texas public community and 
technical colleges in response to federal and state legislation for higher 
education, including workforce education and training; 
(2) provides accountability to the public, the Legislature, the Governor, and 
the U. S. Department of Education for expenditure of public funds; and 
(3) enables Texas public community and technical colleges and other institutions 
providing certificate or associate degree programs to demonstrate that their 
programs are developing a well-educated citizenry and highly trained workforce. 

sec.10.2. Authority. 
Texas Education Code, Sections 61.051(e)(f)(g)(k)(n)(o), 61.054, 61.055, 61.061, 
61.062(c)(d)(e), 61.063, 61.0651, 61.066, 130.001(b)(3)-(5), 130.003, and 
135.01, authorize the Coordinating Board to adopt policies, enact regulations, 
and establish rules to provide for the review of the institutional effectiveness 
of programs, services, and standards of operation for Texas public community and 
technical colleges and other institutions providing certificate and associate 
degree programs. 

sec.10.3. Definitions. 
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise: 
(1) Associate Degree Program - A grouping of courses designed to lead the 
individual directly to employment in a specific career, or to transfer to an 
upper-level baccalaureate program. This specifically refers to the associate of 
arts, associate of science, associate of applied arts, associate of applied 
science, and the associate of occupational studies degrees. The term "applied" 
in an associate degree name indicates a program whose content primarily is 
technical. 
(2) Board or Coordinating Board - The Texas Higher Education Coordinating Board. 
(3) Certificate Program - A grouping of courses designed for entry-level 
employment or for upgrading skills and knowledge within an occupation. 
Certificate programs serve as building blocks and exit points for AAS degree 
programs. This award is approved by the Coordinating Board at one of three 
levels, appears on the Workforce Program Clearinghouse Inventory, and is subject 
to the Coordinating Board program evaluation process. 
(4) Commissioner of Higher Education or Commissioner - The chief executive 
officer of the Texas Higher Education Coordinating Board.
(5) Governing Board - The body charged with policy direction of any public 
community/junior college district, the technical college system, public senior 
college or university, or other educational agency including but not limited to 
boards of directors, boards of regents, boards of trustees, and independent 
school district boards. 
(6) Institutional Effectiveness - A comprehensive statewide evaluation process 
for Texas public community and technical colleges and other institutions 
providing certificate or associate degree programs that takes into account the 
resources, processes, and results of an educational institution and its programs 
and services. 
(7) Standards of Operation - The institutional policies and procedures in place 
which assist the institution in delivering quality educational programs. These 
standards are applicable to Texas public community and technical colleges and 
other institutions providing certificate or associate degree programs. 
(8) Institutional Services - The services of an associate degree or certificate- 
granting institution to promote student access and achievement, retention, 
community service efforts, maintenance of facilities and equipment, quality 
academic areas, and success in transfer. 
(9) Programs" - All certificate and associate degree programs. See "Associate 
Degree Program" and "Certificate Program."
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 25, 1998.
TRD-9802817
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER B.General Provisions
19 TAC sec.sec.10.21-10.24
The Texas Higher Education Coordinating Board proposes new Chapter 10, 
Subchapter B, sec.10.21 - sec.10.24 concerning Institutional Effectiveness in 
Public Community/Junior College Districts and Technical Colleges (General 
Provisions). The new proposed rules are as a result of a complete review, 
rewriting, and restructuring of current Board rules affecting public two- year 
degree granting institutions. The changes will replace repealed rules to improve 
readability, consistency, and uniformity, and will add new rules to address 
legislation not previously included in Board rules. The proposed amendments will 
not substantially change the operation of public two-year degree granting 
institutions since many of the functions not previously addressed by Board rules 
were in place. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be that the changes will eliminate oversight by 
the Board that is not statutorily authorized, allowing local control to be 
effective where appropriate while providing the appropriate level of state 
supervision. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
61.061, 61.062, and 130.001, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Institutional 
Effectiveness in Public Community/Junior College Districts and Technical 
Colleges (General Provisions). 
There were no other sections or articles affected by the proposed amendments.

sec.10.21.Procedures. 
(a) Performance Measures and Standards. All certificate and associate degree 
programs and institutional services and standards of operation must meet 
performance measures and standards as established by the Board in consultation 
with an advisory committee appointed by the Commissioner of Higher Education and 
comprised of representatives from public institutions having certificate and 
associate degree programs. The measures shall assess the following:
(1) the institution's overall quality and ability to produce desired results as 
outlined in Board- approved measures and standards; and
(2) the quality and ability to produce desired results as outlined in Board-
approved measures and standards of certificate and associate degree programs. 
(b) Reporting. The Board staff shall collect, analyze, and disseminate 
information and data pertinent to the evaluation of certificate and associate 
degree programs and institutional services and standards of operation through 
the institutional effectiveness process. 
(c) Institutional Self-evaluation. Institutions shall conduct self-evaluations 
of certificate and associate degree programs and institutional services and 
standards of operation through the use of an instrument and in a time frame 
determined by the Board. The institution shall submit a report of its self-
evaluation to the Board staff in a time period and format determined by the 
Board. 
(d) Board Staff Review. The Board staff shall conduct a comprehensive review of 
institutional certificate and associate degree programs and institutional 
services and standards of operation within a time frame determined by the Board. 
(e) Board Staff Recommendations. The Board staff shall provide a report with 
recommendations to the Commissioner regarding the review results and whether 
additional information is needed or improvements must be made in certificate and 
associate degree programs or institutional services and standards of operation. 
The Board staff may also recommend to the Commissioner the initiation, 
consolidation, or elimination of certain certificate or associate degree 
programs where or when that action: 
(1) is in the best interest of the institution, 
(2) is in the best interest of the general needs of the state, 
(3) is in the best interest of the county in which the institution is located, 
or 
(4) may contribute to excellence by the appropriate concentration of available 
resources. 
(f) The Commissioner shall make recommendations to the Board regarding colleges' 
compliance or non-compliance in the initiation, consolidation, or elimination of 
programs. 

sec.10.22.Action and Order of the Board. 
(a) Board action on the colleges' compliance or non-compliance in the 
initiation, consolidation, or elimination of programs shall be taken at 
regularly scheduled quarterly Board meetings. 
(b) A resolution shall be entered in the minutes of the Board and conveyed in 
writing by the Commissioner to the governing boards of the affected 
institutions.

sec.10.23 Compliance and Certification.
The Commissioner shall certify to the proper officials the names of those 
community/junior colleges that have complied with the provisions of this 
subchapter, as well as other rules and regulations of the Board. Only those 
institutions which are so certified shall be eligible for and may receive any 
appropriation made by the legislature to community/junior colleges as prescribed 
in the Texas Education Code, Section 130.003. 

sec.10.24. Noncompliance. 
(a) In the event of a finding of non-compliance, the chancellor, president, and 
the chair of the governing board shall be given notice of any finding and the 
provisions of this subchapter that have been violated, if applicable. The 
college shall be given a time frame to make satisfactory adjustments. If 
satisfactory adjustments are not made within the time frame, the Commissioner 
may elect not to certify the institution for purposes of state appropriations.
(b) Approval of new certificate or associate degree programs shall be contingent 
upon the institution's compliance with provisions of this subchapter. 
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 25, 1998.
TRD-9802818
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

CHAPTER 12.Proprietary Schools
SUBCHAPTER A.Purpose and Authority
19 TAC sec.12.24
The Texas Higher Education Coordinating Board proposes amendments to Chapter 12, 
Subchapter A, Section 12.24, concerning Purpose and Authority (Definitions). The 
amendments were made to include definitions of terms relevant to the TASP test 
as well as to specify circumstances under which students are exempt from the 
TASP requirement as it currently exists in Chapter 12. The amendments are 
informational and serve to clarify board rules regarding the TASP requirement as 
it exists in Chapter 12. Students in proprietary degree programs and proprietary 
school owners, directors, and other administrators will gain a better 
understanding of their obligations and responsibilities under the TASP 
requirement. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be as a result of enhanced assurance that 
students who graduate from board- approved proprietary degree programs possess 
minimum skills in reading, writing, and mathematics. There will be no effect on 
state or local government or small businesses. There is no anticipated economic 
costs to persons who are required to comply with the rule as proposed.
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Section 
132.063, which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning Purpose and Authority (Definitions).
There were no other sections or articles affected by the proposed amendments.

sec.12.24.Definitions. 
The following words and terms shall have the following meanings, unless the 
context clearly indicates otherwise. 
<nl>(1-29) <ol> (No Change.)
<nl>(30)<ol> <nl>Testing Irregularity--any act of dishonesty involving the TASP 
test. <ol>
<nl>(31) <ol> <nl>Texas Academic Skills Program (TASP) Test--The test required  
by Texas Education Code, Section 51.306 which shall be uniformly administered 
statewide on days prescribed by the Board and shall be scored by the testing 
contractor. The test measures college readiness in reading, writing, and 
mathematics and includes a written essay. It is administered under secure 
conditions and each student is provided with diagnostic information regarding 
test performance.<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 February 25, 1998.
TRD-9802819
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER B.Basic Standards
19 TAC sec.12.52
The Texas Higher Education Coordinating Board proposes amendments to Chapter 12, 
Subchapter B, Section 12.52, concerning Basic Standards (Texas Academic Skills 
Program TASP). The amendments were made to include definitions of terms relevant 
to the TASP test as well as to specify circumstances under which students are 
exempt from the TASP requirement as it currently exists in Chapter 12. The 
amendments are informational and serve to clarify board rules regarding the TASP 
requirement as it exists in Chapter 12. Students in proprietary degree programs 
and proprietary school owners, directors, and other administrators will gain a 
better understanding of their obligations and responsibilities under the TASP 
requirement. 
Glenda Barron, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there will 
be no fiscal implications as a result of enforcing or administering the rule. 
Dr. Barron also has determined that for the first five years the rule is in 
effect the public benefit will be as a result of enhanced assurance that 
students who graduate from board- approved proprietary degree programs possess 
minimum skills in reading, writing, and mathematics. There will be no effect on 
state or local government or small businesses. There is no anticipated economic 
costs to persons who are required to comply with the rule as proposed.
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Section 
132.063, which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning Basic Standards (Texas Academic Skills 
Program TASP). 
There were no other sections or articles affected by the proposed amendments.

sec.12.52. Texas Academic Skills Program (TASP).
Each person who enrolls in an applied associate degree program at a proprietary 
institution on or after September 1, 1997 must pass all sections of the 
certification form of the Texas Academic Skills Program (TASP) examination at 
the level established by the Coordinating Board before the degree may be 
awarded. 
<nl>(1)<ol> <nl>Exemptions: <ol>
<nl>(A)<ol> <nl>Any student with at least three college-level semester credit 
hours or the equivalent from an accredited institution accumulated prior to the 
fall of 1989 shall not be required to take the TASP test. Such credit hours must 
be certified as college-level from the granting institution and need not be 
applicable toward a degree or certificate. <ol>
<nl>(B)<ol> <nl> Students who perform at or above a level set by the 
Coordinating Board on the American College Test (ACT), Scholastic Assessment 
Test (SAT) or exit-level Texas Assessment of Academic Skills (TAAS) shall be 
exempt from the TASP test requirement. This exemption will be in effect for five 
years from the date the ACT or SAT was taken and for three years from the date 
the TAAS test was taken. While tests may be retaken, ACT or SAT scores meeting 
or exceeding the standard set by the Board must be achieved on a single test 
administration. TAAS scores must meet or exceed exemption standards on the first 
attempt. The standards set by the Board may not exceed a level that is 
equivalent to a 95 percent probability of passing the TASP test. Effective Fall 
1997, and until amended by the Board, standards for exemption from the TASP are: 
<ol>
<nl>(i)<ol> <nl>ACT: composite score of 23 with a minimum of 19 on both the 
English and the mathematics test, <ol>
<nl>(ii)<ol> <nl> SAT: combined verbal and mathematics score of 1070 with a 
minimum of 500 on both the verbal and the mathematics test (recentered scale for 
tests taken April 1995 and thereafter), <ol>
<nl>(iii)<ol> <nl>SAT: for tests taken prior to April 1995, a combined verbal 
and mathematics score of 970, with a minimum of 420 on the verbal test and 470 
on the mathematics test, or <ol>
<nl>(iv)<ol> <nl> TAAS: a minimum scale score of 1770 on the writing test, a 
Texas Learning Index (TLI) of 86 on the mathematics test and 89 on the reading 
test. <ol>
<nl>(C)<ol> <nl> A student who has graduated with a baccalaureate degree from a 
regionally accredited institution of higher education is exempt from the TASP 
requirements. <ol>
<nl>(2)<ol> <nl>Administration <ol>
<nl>(A)<ol> <nl>Once a student has passed any section of the TASP test, his or 
her score shall remain active. Test sections passed while a student is in high 
school are valid for a period of five years. <ol>
<nl>(B)<ol> <nl>A public institution of higher education serving as a testing 
site may not charge proprietary school degree-seeking students for site costs 
associated with the TASP test. <ol>
<nl>(C)<ol> <nl>If a student enrolled in a degree program at a proprietary 
institution wishes to take the Pre-TASP at a public institution of higher 
education, the public institution may not charge the proprietary institution 
student more than $4.00 for the administration and scoring of the Pre-TASP test. 
<ol>
<nl>(D)<ol> <nl>Each degree-granting proprietary institution shall provide 
information in the institution's catalog relating to the testing and 
requirements of TASP as established by the Board. <ol> 
<nl>(3)<ol> <nl> Testing Irregularities. <ol>
<nl>(A)<ol> <nl> TASP scores may be withheld and/or canceled for any student who 
is suspected of committing a testing irregularity during the TASP test 
administration. <ol>
<nl>(B)<ol> <nl>Institutions may be notified in the event the student is 
suspected of having committed a testing irregularity. <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 February 25, 1998.
TRD-9802820
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

CHAPTER 21.Student Services
SUBCHAPTER A.General Provision
19 TAC sec.21.6
(Editor's note: The Texas Higher Education Coordinating Board proposes for 
permanent adoption the new sec.21.6 it adopts on an emergency basis in this 
issue. The text of the new sec.21.6 is in the Emergency Rules section of this 
issue.)
The Texas Higher Education Coordinating Board proposes to Chapter 21, Subchapter 
A, new sec.21.6, concerning General Provisions (Student Compliance with 
Selective Service Registration. The new rule is being proposed to comply with 
House Bill 2061, passed by the 75th Legislature. The bill requires students to 
register with the Selective Service before they can receive a loan, grant, 
scholarship or other financial assistance funded by state revenue. Currently 
over 90 percent of students receiving financial assistance complete the Federal 
Application for Federal Student Aid. The federal government already has rules 
and guidelines in place to ensure that students receiving financial aid have 
complied with Selective Service requirements.
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be that students will have to register with Selective 
Service before receiving financial aid. There will be no effect on state or 
local government or small businesses. There is no anticipated economic costs to 
persons who are required to comply with the rule as proposed.
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Section 
51.9095, which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning General Provisions (Student Compliance with 
Selective Service Registration). 
There were no other sections or articles affected by the proposed amendments.
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 23, 1998.
TRD-9802666
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER J.The Physician Education Loan Repayment Program
19 TAC sec.sec.21.251-21.265
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas Higher 
Education Coordinating Board or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 21, 
Subchapter J, sec.21.251 - sec.21.265 concerning The Physician Education Loan 
Repayment Program. The rules are being repealed to eliminate the repetition of 
requirements and definitions shared by the three parts of the program and 
present the rules in a more logical order and in a manner that clearly 
distinguishes the requirements for one part of the program from the requirements 
for the other parts of the program. The proposed changes will include the 
elimination of a specific annual repayment amount. Current rules specify a 
$9,000 loan repayment per year. This prevents flexibility in adjusting to 
fluctuations in demand represented by the number of applications for 
participation in the program as well as increases in the amount of student loan 
indebtedness among applicants. Limiting the repayment amount to $9,000 for all 
physicians also prevents implementation of graduated annual repayment amounts, 
which could provie incentives for longer periods of service in economically 
depressed or medically underserved areas. Repayment amounts recommended by staff 
and approved by the Commissioner, as proposed in the amendments would facilitate 
full use of appropriated funds in the Family Practice Resident/Faculty portion 
of the program while ensuring that the funds are being spent to serve the 
purpose of the program, and qualify eligible physicians for increased repayment 
amounts drawn from federal matching funds. 
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be that they will ensure that the purpose of the state-
funded portion of the program and the National Health Service Corps Matching 
Loan Repayment portion of the program is served by allowing staff to implement 
increased repayment amounts for longer periods of service.
There will be no effect on state or local government or small businesses. There 
is no anticipated economic costs to persons who are required to comply with the 
rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The repeal of the rules are proposed under Texas Education Code, Section 61.537, 
which provides the Texas Higher Education Coordinating Board with the authority 
to adopt rules concerning The Physician Education Loan Repayment Program. 
There were no other sections or articles affected by the proposed amendments.
sec.21.251. Purpose. 
sec.21.252.Administration.
sec.21.253.Delegation of Powers and Duties.
sec.21.254.Definitions. 
sec.21.255. State Recommended Health Professional Shortage Area.
sec.21.256. Area of Highest Need. 
sec.21.257. Eligible Lender or Holder. 
sec.21.258. Eligible Physician. 
sec.21.259. Eligible Education Loan. 
sec.21.260.State-funded Physician Education Loan Repayment Program. 
sec.21.261. Expanded Physician Education Loan Repayment Program.
sec.21.262.Priorities of Application Acceptance.
sec.21.263.Prior Conditional Approval. 
sec.21.264.Repayment of Education Loans. 
sec.21.265.Dissemination of Information.
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 23, 1998.
TRD-9802659
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

19 TAC sec.sec.21.251-21.263
The Texas Higher Education Coordinating Board proposes new Chapter 21, 
Subchapter J, sec.21.251 - sec.21.263 concerning The Physician Education Loan 
Repayment Program. The new rules are being proposed to eliminate the repetition 
of requirements and definitions shared by the three parts of the program and 
present the rules in a more logical order and in a manner that clearly 
distinguishes the requirements for one part of the program from the requirements 
for the other parts of the program. The proposed changes will include the 
elimination of a specific annual repayment amount. Current rules specify a 
$9,000 loan repayment per year. This prevents flexibility in adjusting to 
fluctuations in demand represented by the number of applications for 
participation in the program as well as increases in the amount of student loan 
indebtedness among applicants. Limiting the repayment amount to $9,000 for all 
physicians also prevents implementation of graduated annual repayment amounts, 
which could provide incentives for longer periods of service in economically 
depressed or medically underserved areas. Repayment amounts recommended by staff 
and approved by the Commissioner, as proposed in the amendments would facilitate 
full use of appropriated funds in the Family Practice Resident/Faculty portion 
of the program while ensuring that the funds are being spent to serve the 
purpose of the program, and qualify eligible physicians for increased repayment 
amounts drawn from federal matching funds. 
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be that they will ensure that the purpose of the state-
funded portion of the program and the National Health Service Corps Matching 
Loan Repayment portion of the program is served by allowing staff to implement 
increased repayment amounts for longer periods of service.
There will be no effect on state or local government or small businesses. There 
is no anticipated economic costs to persons who are required to comply with the 
rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The proposed new rules are proposed under Texas Education Code, Section 61.537, 
which provides the Texas Higher Education Coordinating Board with the authority 
to adopt rules concerning The Physician Education Loan Repayment Program. 
There were no other sections or articles affected by the proposed amendments.

sec.21.251. Purpose. 
The purpose of the Physician Education Loan Repayment Program is to encourage 
qualified physicians to practice medicine in designated areas of the state or 
for specified state agencies. The purpose of the state-funded portion of the 
program is to encourage qualified physicians to practice medicine in a medically 
underserved area that is economically depressed or rural or for the Texas 
Department of Health, the Texas Department of Mental Health and Mental 
Retardation, the Texas Department of Criminal Justice, the Texas Youth 
Commission, or a Community Health Center. The purpose of the National Health 
Service Corps Matching Loan repayments is to encourage qualified physicians to 
practice in Health Professional Shortage Areas. The purpose of the family 
practice faculty and resident portion of the program is to encourage 
specializing in family practice and practicing in rural counties and Health 
Professional Shortage Areas in Texas. 

sec.21.252. Administration. 
The Texas Higher Education Coordinating Board, or its successor or successors, 
shall administer the Physician Education Loan Repayment Program.

sec.21.253. Dissemination of Information.
The Board shall publish and disseminate information about the Physician 
Education Loan Repayment program to health-related institutions of higher 
education, appropriate state agencies, and any interested professional 
associations.

sec.21.254. Definitions. 
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise:
(1) Approved Texas Family Practice Residency Training Program -- a graduate 
medical education program operated by a medical school, licensed hospitals or 
nonprofit corporations, which has been approved for training physicians in 
family practice and for the receipt of state funds for that purpose by the 
Coordinating Board after receiving the recommendation of the Board's Texas 
Family Practice Residency Advisory Committee. 
(2) Board -- the Texas Higher Education Coordinating Board. 
(3) Commissioner -- the commissioner of higher education, the chief executive 
officer of the Board. 
(4) Community Health Center -- any facility in Texas funded under the provisions 
of the United States Public Health Services Act, Sections 329, 330, and 340, and 
providing health care to low-income communities, migrant farm workers, and the 
homeless. 
(5) Economically Depressed or Rural Medically Underserved Area -- any area that 
is a State Recommended Health Professional Shortage Area as defined in Section 
21.257 of this title (relating to State Recommended Health Professional Shortage 
Area) or a practice that clearly serves the medically underserved population. 
(6) Health Professional Shortage Area (HPSA) -- an area of the state designated 
by the Division of Shortage Designation, Bureau of Primary Health Care, of the 
U.S. Department of Health and Human Services or its successors as having a 
shortage of health professionals. 
(7) Program -- The Physician Education Loan Repayment Program. 
(8) Pro rata -- a proportionate basis upon which payment amounts will be scaled, 
depending upon the share of a full work year for state employees. 
(9) Service period -- a twelve-month period during which a physician qualifies 
for repayment of education loans. 

sec.21.255. Special Limitations.
(a) An eligible physician is one who: 
(1) is not currently fulfilling an obligation to provide physician services in 
the eligible area or facility; and 
(2) has not received start-up assistance from a sponsoring community and the 
State Board of Health under Chapter 46, Health and Safety Code. 
(b) Not more than 20 percent of the amount appropriated for the Program each 
fiscal year shall be allocated to fund repayments to first-time applicants who 
are working for the state agencies. 

sec.21.256. Priorities of Application Acceptance. 
Acceptance of applicants will depend on the availability of funds. Renewal 
applicants will be given priority treatment over first-time applicants.

sec.21.257. State Recommended Health Professional Shortage Area. 
A State Recommended Health Professional Shortage Area shall be any area of the 
state recommended by the Texas Department of Health to the Division of Shortage 
Designation, Bureau of Primary Health Care, of the U. S. Department of Health 
and Human Services, or its successors, as having a shortage of health 
professionals. 
(1) Denial of designation by the Division of Shortage Designation does not 
remove a State Recommended Health Professional Shortage Area from the list of 
eligible areas in the state- funded portion of the program. 
(2) A State Recommended Health Professional Shortage Area may be removed from 
the list of eligible areas in the state-funded portion of the program only after 
a recommendation to that effect by the Texas Department of Health to the 
Division of Shortage Designation. 

sec.21.258.Eligible Education Loan.
An education loan eligible for repayment is one that: 
(1) was obtained through an eligible lender for purposes of attending a post-
secondary institution; 
(2) is not an education loan made to oneself from one's own insurance policy or 
pension plan or from the insurance policy or pension plan of a spouse or other 
relative; 
(3) does not entail a service obligation, except in the case of a State Medical 
Education Board Loan whose recipient has provided the first two years of service 
required in order for the physician to repay the education loan without penalty; 
and 
(4) is not in default at the time of the physician's application.

sec.21.259. Eligible Lender or Holder.
The Board shall retain the right of determining eligibility of lenders and 
holders of education loans to which payments may be made. An eligible lender or 
holder shall, in general, make or hold education loans made to individuals for 
purposes of attending post-secondary institutions and shall not be any private 
individual. An eligible lender or holder may be, but is not limited to, a bank, 
savings and loan association, credit union, institution of higher education, 
secondary market, governmental agency, pension fund, private foundation, or 
insurance company. 

sec.21.260. Repayment of Education Loans. 
Eligible education loans of qualified physicians shall be repaid under the 
following conditions:
(1) the annual repayment(s) shall be made co-payable to the eligible physician 
and to any eligible lender(s) or holder(s), and must be applied only to the 
outstanding principal balance of the education loan, including capitalized 
interest; 
(2) the total annual repayment to one or more eligible lenders or holders shall 
not exceed the applicant's unpaid principal loan balance, including capitalized 
interest, from all sources; and 
(3) the repayment may be made for verified full-time service or for verified 
part-time service on a pro rata basis. 

sec.21.261. State-Funded Portion for Post-Residency Practice.
(a) An eligible physician is one who: 
(1) has a current unrestricted license, or, in the case of a faculty member, a 
current unrestricted or institutional license to practice medicine in Texas from 
the Texas State Board of Medical Examiners; 
(2) except in the case of general practitioners, has satisfactorily completed a 
postgraduate program approved by the Texas State Board of Medical Examiners and 
accredited by the Accreditation Council on Graduate Medical Education or the 
American Osteopathic Association or has earned and maintained certification from 
an American Specialty Board that is a member of the American Board of Medical 
Specialties or the Advisory Board of Osteopathic Specialties in one of the 
following specialties: family practice, osteopathic general practice, 
obstetrics/gynecology, general internal medicine, general pediatrics, emergency 
medicine, general surgery, and psychiatry; 
(3) has submitted the appropriate application to the Board; and 
(4) has completed at least one year of medical practice in: 
(A) an economically depressed or rural medically underserved area of the state; 
(B) the Texas Department of Health, the Texas Department of Mental Health and 
Mental Retardation, the Texas Department of Criminal Justice, or the Texas Youth 
Commission; or 
(C) a Community Health Center in Texas. 
(b) The Commissioner will determine the award amounts providing incentives for 
continuous service and service in the most underserved areas. Repayments shall 
be made after each year of eligible service has been completed. Education loan 
repayment may be renewed annually upon successful completion of the application 
process, but for no more than a total of five years, including any awards under 
Section 21.263 of this title (relating to Family Practice Resident and Faculty 
Participation). 

sec.21.262. National Health Service Corps (NHSC) Matching Loan Repayments. 
NHSC loan repayments are matched with an equivalent amount awarded under the 
provisions of Section 21.261 of this title (relating to State-Funded Portion for 
Post-Residency Practice) or Section 21.263 of this title (relating to Family 
Practice Resident and Faculty Participation). A physician eligible for matching 
loan repayments is one who: 
(1) has completed at least one year of medical practice in a Health Professional 
Shortage Area as defined in Section 21.254 of this title (relating to 
Definitions); 
(2) has accepted Medicare and Medicaid assignment as full payment for medical 
services rendered to Medicaid and Medicare patients during the twelve month 
service period, as verified by Texas Department of Human Services; 
(3) uses a sliding fee scale or a comparable method of determining payment 
arrangements for patients who are not eligible for Medicaid/Medicare benefits 
and who are unable to pay the customary fee for the physician's services 
received; and 
(4) practices in one of the practice specialties named by the U.S. Secretary of 
Health and Human Services for purposes of this program.

sec.21.263. Family Practice Resident and Faculty Participation. 
The Texas Family Practice Residency Advisory Committee will establish priorities 
among eligible physicians for repayment assistance by taking into account the 
degree of physician shortage, geographic location, and other criteria the 
committee considers appropriate. The annual award amounts will be based on a 
point system that reflects the purpose of the program. A participant is eligible 
for no more than two awards. 
(1) An eligible resident is a resident who has an unrestricted, temporary, or 
institutional license to practice medicine in Texas from the Texas State Board 
of Medical Examiners and is participating in an approved Texas Family Practice 
Residency Training Program in Texas. Residents ending their second and third 
years of training during any given state fiscal year are eligible. 
(2) An eligible faculty member is one who practices at an approved Texas Family 
Practice Residency Training Program, has an unrestricted, temporary or 
institutional license to practice medicine in Texas from the Texas State Board 
of Medical Examiners, and has completed training in an approved Texas Family 
Practice Residency Training Program on or after July 1, 1994.
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 23, 1998.
TRD-9802658
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER K.The Good Neighbor Scholarship Program
19 TAC 21.285, 21.288
The Texas Higher Education Coordinating Board proposes amendments to Chapter 21, 
Subchapter K, sec.21.285 and sec.21.288, concerning The Good Neighbor 
Scholarship Program. The amendments to the rules are being proposed to limit the 
number of scholarship recipients to 235 per year; to eliminate the requirement 
for the schools to process individual affirmations; and establish a deadline of 
October 15 for reallocating unused scholarships. The current rules allow 235 
students per semester or term to receive the scholarship. This has resulted in 
exceeding the limit of 235 students per year established by Texas Education 
Code, Section 54.207. The amendments to the rules will bring ths rules into 
compliance with the statute and limit the awards to a total of 235 students a 
year. The change will reduce the number of waivers granted by approximately 100 
per year, which will result in a reduction to tuition waivers of approximately 
$420,600. 
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be the streamline of the process used for granting the 
scholarships. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
54.207 and 61.027, which provides the Texas Higher Education Coordinating Board 
with the authority to adopt rules concerning The Good Neighbor Scholarship 
Program. 
There were no other sections or articles affected by the proposed amendments.

sec.21.285. Eligible Institution of Higher Education.
An eligible institution of higher education shall be any Texas public <nl> 
institution of higher education<ol> [general academic teaching institution, 
public junior or community college, public health science center, or the Texas 
State Technical Institute]. 

sec.21.288.Selection Procedures. 
Each year eligible institutions may submit scholarship recommendations to the 
board. Applications for <nl>the 12-month<ol> [fall-spring] awards must be 
submitted to the board no later than March 15[; summer awards, no later than 
March 1]. 
(1)-(2) (No Changes) 
(3) Reallocation of unused scholarships. In the event any nation fails to have 
10 students available and qualified for exemption, or if the designated country 
fails to have 35 such students, the commissioner may allocate such unused 
exemptions as he determines to be appropriate, with priority being given to 
students from Mexico, except that the total of such exemptions shall not exceed 
235 in a <nl>year<ol> [semester or term]. <nl>If an institution notifies the 
board by October 15 of a selected student's failure to use the offered 
exemption, the board will offer the exemption to the first statewide alternate 
for that country. Awards canceled after October 15 will be allowed to lapse.<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 February 23, 1998.
TRD-9802660
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

19 TAC 21.289
(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 Higher 
Education Coordinating Board or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Higher Education Coordinating Board proposes the repeal of Chapter 21, 
Subchapter K, sec.21.289, concerning The Good Neighbor Scholarship Program 
(Affirmation of Receipt of Scholarship). The repeal of the rule is being 
proposed to limit the number of scholarship recipients to 235 per year; to 
eliminate the requirement for the schools to process individual affirmations; 
and establish a deadline of October 15 for reallocating unused scholarships. The 
current rules allow 235 students per semester or term to receive the 
scholarship. This has resulted in exceeding the limit of 235 students per year 
established by Texas Education Code, Section 54.207. The amendments to the rules 
will bring ths rules into compliance with the statute and limit the awards to a 
total of 235 students a year. The change will reduce the number of waivers 
granted by approximately 100 per year, which will result in a reduction to 
tuition waivers of approximately $420,600. 
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be the streamline of the process used for granting the 
scholarships. There will be no effect on state or local government or small 
businesses. There is no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The repeal of the rules is proposed under Texas Education Code, Sections 54.207 
and 61.027, which provides the Texas Higher Education Coordinating Board with 
the authority to adopt rules concerning The Good Neighbor Scholarship Program. 
There were no other sections or articles affected by the proposed amendments.
sec.21.289.Affirmation of Receipt of Scholarship.
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 23, 1998.
TRD-9802661
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER CC.Early High School Graduation Scholarship Program
19 TAC sec.21.958
The Texas Higher Education Coordinating Board proposes amendments to Chapter 21, 
Subchapter CC, sec.21.958 concerning Early High School Graduation Scholarship 
Program (Refunds). The amendments to the rules are being proposed to establish 
the same refund policy for this program as is used by the institutions for 
tuition, fees and other financial aid programs. The change will eliminate the 
need for the institutions to maintain two different refund processes.
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be that the refund process will be used by the 
institutions the same as for tuition and fees and other financial aid programs. 
There will be no effect on state or local government or small businesses. There 
is no anticipated economic costs to persons who are required to comply with the 
rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Section 
56.209 which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning Early High School Graduation Scholarship 
Program (Refunds). 
There were no other sections or articles affected by the proposed amendments.

sec.21.958.Refunds. 
The institution attended by a Tuition Credit award recipient who withdraws from 
a class or drops classes during the first four weeks of class will be expected 
to make a refund to the Early High School Graduation Scholarship Program for 
tuition received for the dropped classes in accordance with <nl> the 
institution's general refund policies.<ol> [the following schedule:
[(1) If class is dropped before classes begin, refund full amount;] 
[(2) If drop is within 1st 5 days of classes, refund 80 percent;] 
[(3) If drop is within 2nd 5 days of classes, refund 70 percent;] 
[(4) If drop is within 3rd 5 days of classes, refund 50 percent;] 
[(5) If drop is during 4th 5 days of classes, refund 25 percent;] 
[(6) If drop is after the 4th 5 days of classes, no refund required.] 
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 23, 1998.
TRD-9802665
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER DD.Minority Doctoral Incentive Program of Texas
19 TAC sec.21.982
The Texas Higher Education Coordinating Board proposes to Chapter 21, Subchapter 
DD, new sec.21.982 concerning Minority Doctoral Incentive Program of Texas 
(Appeals for Exceptions). The new rule adds an appeal process for students in 
case they have unusual circumstances or hardships and are unable to meet all of 
the program requirements. The appeal process will allow the General Counsel and 
Director of Access and Equity and the Assistant Commissioner for Student 
Services to review the circumstances presented by the student and grant 
exceptions. 
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be that it will help students that have unusual 
circumstances or hardships to meet the program requirements. There will be no 
effect on state or local government or small businesses. There is no anticipated 
economic costs to persons who are required to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Section 
56.162 which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning Minority Doctoral Incentive Program of Texas 
(Appeals for Exceptions). 
There were no other sections or articles affected by the proposed amendments.

sec.21.982. Appeals for Exceptions.
In order to fulfill the intent of the Texas Education Code, Chapter 56, 
Subchapter J, the Assistant Commissioner of Student Services and the General 
Counsel and Director of Access and Equity may grant appeals for exceptions if 
they are in unanimous agreement.
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 23, 1998.
TRD-9802668
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER HH.Exemption Program for Texas Air and Army National Guard/ROTC 
Students
19 TAC sec.sec.21.1055-21.1060, 21.1062-21.1069
The Texas Higher Education Coordinating Board proposes amendments to Chapter 21, 
Subchapter HH, sec.21.1055 - 21.1060, sec.21.1062 - sec.21.1069 concerning 
Exemption Program for Texas Air and Army National Guard/ROTC Students. The 
amendments to the rules are being proposed to clarify the responsibilities of 
the Coordinating Board, the Adjutant General's Department and the recruiters; 
specify the amount to be included in the award for room and board; clarify 
repayment requirements if the student does not fulfill his/her contract; clarify 
requirements for eligibility to participate in the program; and clarify the 
application process and contract terms. 
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be the clarification of the responsibilities of the 
various entities involved in the administration of the program and to address 
issues and questions that developed during the process of issuing these 
scholarships for the first time. There will be no effect on state or local 
government or small businesses. There is no anticipated economic costs to 
persons who are required to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
54.212 and 61.027, which provides the Texas Higher Education Coordinating Board 
with the authority to adopt rules concerning Exemption Program for Texas Air and 
Army National Guard/ROTC Students. 
There were no other sections or articles affected by the proposed amendments.

sec.21.1055. Definitions. 
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise:
<nl>(1-5)<ol> (No Change.)
<nl>(6)<ol> Full-time Student -- An individual enrolled for the equivalent of at 
least 12 semester credit hours each semester term, including military science 
courses <nl>and aerospace studies<ol>.
<nl>(7) <ol> (No Change.)
<nl>(8)<ol> <nl>Order of Merit List -- A list of exemption program applicants, 
submitted on a form designed by the Adjutant General's Office and signed by the 
program officer of an ROTC institution, ranking the applicants under 
consideration for awards through the program.<ol>
<nl>(9)<ol> (No Change.)
<nl>(10)<ol> <nl>Recruiter -- An individual employed as a National Guard 
recruiter by the Adjutant General's Office.<ol> 
<nl>(11)<ol> Resident -- A [bona fide] resident of the State of Texas as 
determined <nl>in accordance with<ol> [by the board and reflected in] Chapter 
21, Subchapter B of this title (relating to Determining Residence Status). 
Nonresident students eligible to pay resident tuition rates are excluded from 
this program. 
<nl>(12-14) <ol> (No Change.)
<nl>(15)<ol> <nl>Texas National Guard ROTC Scholarship Volunteer Program 
(TXNG/RSVP) -- A second name for the Exemption Program for Texas Air and Army 
National Guard/ROTC Students, the program described in this subchapter.<ol>
<nl>(16)<ol> (No Change.)

sec.21.1056. <nl>Activities of the<ol> [Agreement with] Adjutant General's 
Office. 
The [board shall enter into an agreement with the] Adjutant General's Office 
<nl>shall be responsible for<ol> [regarding the two agencies' relative 
responsibilities for the exemption program. The agreement shall include 
provisions regarding]: 
(1) (No Change) 
(2) dissemination of <nl>accurate and up-to-date<ol> program information through 
the use of National Guard recruiting offices;
(3) the collection of payments made by <nl>exemption recipients<ol> [students] 
failing to complete the contractual obligations of the program; 
(4) <nl>Projections of<ol> [projected] staffing requirements for the Texas Air 
and Army National Guard; <nl>and, on that basis, the share of each year's 150 
new awards to go to the Army ROTC and to the Air Force ROTC;<ol> 
(5) (No Change) 
(6) <nl>application<ol> [development] of rules and procedures governing 
<nl>leaves of absence,<ol> probations or waivers of repayment requirements 
<nl>under special circumstances when cases are forwarded by institution 
selection committees or National Guard Units <ol> [of the program authorized 
under this subchapter for participants who are in the service phase of program 
participation]. 

sec.21.1057. Selection Committee. 
(a) Membership. Each eligible institution shall create a three-member selection 
committee. Two members of the committee are to be nominated by the institution's 
Chief Executive Officer and shall include a military or aerospace science 
faculty member. A commissioned officer of the Texas Air or Army National Guard 
shall be appointed to each committee by the <nl>Adjutant General<ol> [adjutant 
general]. Final membership of the committees shall be designated by the 
commissioner. 
(b) Duties. The selection committee shall: 
(1) review applications and conduct interviews of students who have applied for 
the exemption and determine which students qualify to receive the exemption, 
taking the following criteria into consideration: 
(A)-(C) (No Change) 
(D) projected staffing requirements for the Texas Air and Army National 
Guard<nl>; and<ol> 
<nl>(E)<ol> the academic performance of the applicant.
(2) (No Change) 
(3) determine whether probation [or a waiver of repayment requirements of the 
program] will be granted <nl>in accordance with ROTC guidelines to<ol> a student 
who has failed to meet program performance standards, and 
(4) determine whether an exemption recipient who loses his/her exempt status may 
serve the remainder of his/her contractual obligation as an enlisted member of 
the Texas Air or Army National Guard, subject to being accepted into and 
maintaining <nl>active drilling<ol> membership in the Texas Air or Army National 
Guard in the same manner as any other person.
<nl>(5)<ol> refer special cases involving leaves of absence or a waiver of 
repayment to the Adjutant General's Office for resolution.

sec.21.1058.Eligible Institution. 
(a) (No Change) 
(b) The chief executive officer of an eligible institution which chooses to 
participate in the exemption program shall designate a Texas Air or Army 
National Guard/ROTC Exemption Program Officer. <nl>The program officer<ol> 
[Unless otherwise specified by the chief executive officer of the institution, 
the Professor of Military Science of the institution] shall be the board's on-
campus agent to certify all institutional activities with respect to this 
program. 

sec.21.1059. Eligible Student.
An eligible student is an undergraduate student who meets the following 
requirements: 
(1) is admitted to the institution's Reserve Officers' Training Corps program or 
is a participant in such a program; [if the student is attending another public 
institution of higher education which provides for cross enrollment in the ROTC 
institution's ROTC program, the student may be considered for selection.] 
(2) becomes a member of the Texas Army National Guard or the Texas Air National 
Guard and maintains satisfactory performance as prescribed by the Adjutant 
General's department as a member in good standing during the <nl>terms of 
enrollment and service<ol> [term] of the student's contractual obligation; 
(3)-(4) (No Change) 
(5) enters into a contract with the <nl>ROTC institution acting on behalf of 
the<ol> State of Texas to accept a commission in the Texas Air or Army National 
Guard as <nl>an officer<ol> [a second lieutenant] on graduation from the ROTC 
institution <nl>or completion of active duty with the United States Armed 
Forces<ol> and serves no less than four years as a commissioned officer; 
(6) <nl>if in the Army National Guard and able to gain a contract into the 
advanced course of ROTC as a junior in college,<ol> no later than the beginning 
of the third year of ROTC, requests and <nl> acquires<ol> [enters into] a 
Guaranteed Reserve Forces Duty <nl> commission (as opposed to an active duty 
commission) during the accessions process upon graduation<ol> [contract from 
their institution's ROTC department]; 
<nl>(7)<ol> if in the Army National Guard and unable to gain a contract into the 
advanced course of ROTC as a junior in college, enrolls in the Texas National 
Guard Officer Candidate School (OCS) in the summer following his/her junior year 
and continues in OCS until he/she graduates from OCS. Upon graduation from OCS 
accepts a commission in the Texas National Guard; 
<nl>(8)<ol> [7] passes the physical examination and police records background 
check required for becoming a commissioned officer in the Texas Air or Army 
National Guard; [and] 
<nl>(9)<ol> [8] has been accepted for admission to the participating ROTC 
institution; <nl>and<ol> 
<nl>(10)<ol> if a member of the Reserve Forces of the United States Armed Forces 
at the time of application for an exemption, acquires a transfer to the Texas 
National Guard by the deadline set by the board. 

sec.21.1060. Dissemination of Information. 
The <nl>Adjutant General's Office and the<ol> board shall provide for the 
distribution of information about the program to eligible institutions and 
[coordinate activities with the adjutant general's office in the distribution of 
information] to high <nl>school students<ol> [schools]. 

sec.21.1062. Award Amounts. 
(a) Tuition and fee exemption amounts. Selected recipients may receive an 
exemption for the amount of their actual tuition and fee charges at their 
institution for up to four <nl>full academic<ol> years <nl>(including summer 
terms)<ol> while enrolled as undergraduates. If the student's program of study 
extends to <nl>more than four years<ol> [a fifth year], the exemption will not 
be extended to that additional <nl>time period<ol> [year]. 
(b) Room and board exemption amounts. Selected recipients may receive an 
exemption for an amount equal to their actual dormitory room and board expenses 
<nl>but not to exceed the average on-campus room and board figure reflected in 
the college's typical student budget on file at the board <ol> for <nl>up to two 
years<ol> [their first two years at the institution]. If the student is not 
living in campus housing, but the institution does have such housing, the amount 
to be awarded as a room and board exemption is the average charged for a student 
in that institution's campus housing. If the institution does not have campus 
housing, the exemption may equal the average room and board allowance reported 
to the board by public universities for that year for students who are receiving 
some type of financial assistance.
(c) Exemptions and reimbursements to students. If student selection is completed 
prior to the payment of tuition and fees or room and board for a particular 
term, the institution is to exempt the selected students from the payment of the 
appropriate charges. If selection is completed after the payment of such 
charges, the <nl>board<ol> [institutions] shall reimburse students for the 
appropriate amounts as indicated in Section 21.1062 (a) and (b) of this title 
(relating to Award Amounts). 
(d) (No Change) 

sec.21.1063. Allocation of Exemptions among Institutions.
(a) The maximum number of new exemptions that can be awarded statewide each year 
is 150. Each participating ROTC institution shall be allocated exemptions for at 
least two new students each academic year. The maximum number of exempt students 
for each ROTC institution will be determined by the percentage of the 
institution's Army and Air Force Reserve Officers' Training Corps enrollment in 
relation to statewide Army and Air Force Reserve Officers' Training [Reserve 
Officers' Training] Corps enrollment. [The total number of enrolled students 
receiving exemptions through the program at any one time shall not exceed 600]. 
(b) (No Change) 
(c) Institutions will have until <nl>May 15<ol> [October 15] of each year to 
inform the <nl>Adjutant General's Office <ol> [board] of their <nl>ranking<ol> 
[selection] of exemption <nl>applicants for the following year<ol> [recipients]. 
If they fail to have <nl>enough screened and ranked applicants to use<ol> their 
full allotment [awarded] as of that date, the board will reallocate the unused 
slots to other eligible institutions which have used their full allotments. 

sec.21.1064.<nl>Awards for Less than Four Years <ol> [Partial Awards]. 
<nl>(a)<ol> <nl> Partial awards.<ol> An institution's selection committee may 
re-award the unused portion of an exemption left when an exemption recipient 
drops out of the program. However, the student selected to fill the unfinished 
exemption must meet [the following criteria:]
[(1) must have originally applied for an exemption in the same year as the 
student who dropped out of the program applied. (i.e., was an alternate for that 
year.)] 
[(2) meet] the eligible student requirements as outlined in Section 21.1059 of 
this title (relating to Eligible Student); 
<nl>(b)<ol> <nl>Contractual obligations. Upon graduation from college, a 
participant receiving fewer than four years' tuition and fee exemption and/or 
less than two years' room and board exemption will have<ol> [(3) agree] to meet 
the same contractual obligations as students receiving the exemptions as 
entering freshmen (i.e., four years' service as a commissioned officer in the 
Texas Air or Army National Guard, or full repayment of the value of the 
exemptions extended, plus interest, if he/she fails to complete the requirements 
of the contract.) 

sec.21.1065. The Application Process. 
(a) To apply for an exemption, the student must complete the full application 
packet for the Texas Air or Army National Guard/ROTC Exemption Program and 
submit it <nl>to a recruiter or to a full, assistant or associate professor of 
military or aerospace science at a participating ROTC institution by the 
deadline designated by the institution for which he/she wishes to receive an 
exemption award. The packet includes an exemption program application, an essay 
form, a listing of extracurricular activities and an official transcript 
(including all but the current term's grades) from the most recent school 
attended.<ol> [to the program officer at the ROTC institution he/she plans to 
attend]. 
<nl>(b)<ol> <nl>If the packet is given to a professor, the professor will review 
it for completeness and forward it to a recruiter.<ol>
<nl>(c)<ol> <nl> The recruiter will pre-screen applicants for their 
acceptability for the National Guard and forward paperwork for applicants 
passing the pre-screening process to the Adjutant General's Office as soon as 
possible, but no later than May 1. <ol>
(d) <nl>The Adjutant General's Office will check the application packets for 
completeness and forward them as soon as possible to the relevant institution's 
selection committee.<ol> [After the interviews, top ranking candidates will be 
required to take the physical examination and submit to the police records 
background check required for commissioning officers.]
<nl>(e)<ol> [(b)] The selection committee at the institution will review [all] 
applications and rank applicants according to a set of criteria developed by the 
board and the <nl>Adjutant General's<ol> [adjutant general's] Office. 
<nl>(f)<ol> [(c)] Top candidates will be asked to sit for at least one 
interview, to be conducted using a set of questions <nl> provided<ol> 
[developed] by the board and Adjutant General's Office. 
<nl>(g)<ol> [(e)] <nl>By May 15, the<ol> [The] selection committee will finalize 
its decisions and <nl>send the Education Officer of the Adjutant General's 
Office an Order of Merit List certified by the institution's program officer<ol> 
[notify the board of its selections by no later than October 15]. 
<nl>(h)<ol> <nl>Selected students will be notified by the program officer of 
their awards pending successful induction into the Texas National Guard. <ol>
<nl>(i)<ol> <nl>Once selected students are inducted into the Texas National 
Guard, the program officer and the students are to sign the exemption program 
contracts, finalizing the award process. <ol>
<nl>(j)<ol> <nl>No school may add students to its Order of Merit List after May 
15, but if a top-ranked student fails to use an offered award, the school may 
offer his/her award to an alternate from its May 15 listing. If no additional 
alternates are on the list, the award will be reallocated to another 
institution. <ol>

sec.21.1066. The Texas Air or Army National Guard/ROTC Exemption Program 
Contract. 
(a) Each participating student must enter into a contract with the <nl>ROTC 
institution acting on behalf of the<ol> State of Texas. In the contract, 
(1) the student must agree to: 
(A) (No Change) 
(B) become a member of the Texas Army National Guard or the Texas Air National 
Guard and maintain satisfactory performance as prescribed by the <nl>Adjutant 
General's<ol> [adjutant general's] department as a member in good standing 
during the <nl>enrollment and service terms <ol> [term] of his/her contractual 
obligation; 
(C)-(D) (No Change) 
(E) immediately upon graduation from the ROTC institution <nl> or upon 
completion of active duty with the United States Armed Forces<ol>, accept a 
commission in the Texas Air or Army National Guard as a second lieutenant and 
serve no less than four years as a commissioned officer; 
(F) repay to the state the amount of tuition, fees and other charges for which 
he/she received an exemption [and which he/she has not yet repaid through 
service], plus interest as determined by the board, should the student fail to 
[maintain exempt status or fail to accept a commission in the Texas Air or Army 
National Guard, or otherwise fail to] meet the obligations of the contract; 
<nl>(G)<ol> <nl>agree to graduate and be commissioned as an officer in the Texas 
National Guard or enter into active duty with the United States Armed Forces 
within 6 years of the original exemption received, unless the period is extended 
with permission of the Adjutant General's Office; and <ol> 
<nl>(H)<ol> [(G)] understand that under circumstances requiring repayment, the 
full amount of his/her obligation is to be repaid by no later than the fifth 
anniversary of the date of the circumstances which required him/her to 
<nl>begin<ol> [make] repayment. 
(2) the institution must agree to: 
(A) provide the students selected for exemptions through this program a 
statement of the <nl>Adjutant General's<ol> [adjutant general's] criteria for 
maintaining satisfactory performance as a member in good standing during the 
term of the student's contractual obligation; 
(B) (No Change) 
(C) if reimbursement funding is provided by the state, award exemptions for the 
actual tuition and fees paid by the selected student at this institution for up 
to four years while the student meets the program's requirements. Should the 
student be called into active military service during his/her enrollment at this 
institution, the four year time frame may be extended at the institution's 
selection committee's discretion<nl>; and<ol> 
(D) if reimbursement funding is provided by the state, award exemptions for room 
and board as indicated in Section 21.1062 (b) of this title (relating to Award 
Amounts) to eligible students enrolled in their first two years <nl>of<ol> [at] 
the ROTC <nl>exemption program<ol> [institution]. 

sec.21.1067. Noncompliance.
(a) If the student/participating Air or Army National Guardsman fails to fulfill 
any obligation outlined in the exemption program contract, he or she shall be in 
noncompliance with the contract and will be required to repay [any remaining 
portion of the] his/her contractual obligation to the state unless the student 
has been granted probationary status by his/her institution's selection 
committee or the participating Air or Army National Guardsman is granted 
probationary status by the Adjutant General's Office. Such repayment 
requirements will be outlined in the promissory note signed by the student upon 
receipt of an exemption under this program. 
(b) (No Change) 
(c) If an exemption recipient, after graduation, <nl>leaves the Texas National 
Guard to serve in another component of the United States Military,<ol> [accepts 
a commission in a National Guard unit which is not a Texas Air or Army National 
Guard unit], the <nl>exemption recipient<ol> [student] will be obligated to 
<nl>serve for four years in the Texas Army or Air National Guard prior to 
separation from the military or<ol> repay the State of Texas for the funds 
awarded him/her through the Exemption Program for Texas Air and Army National 
Guard/ROTC Students.
(d) <nl>If an exemption recipient fails to qualify for a commission as a 
participant in this program, fulfillment of his/her obligation to Texas may be 
accomplished through service for an equivalent number of years as an enlisted 
member of the Texas National Guard.<ol> [If a graduate of the exemption program 
chooses to enter active duty service rather than serve in the Texas Air or Army 
National Guard, the exemption recipient will be obligated to repay the State of 
Texas for the funds awarded him/her through the Exemption Program for Texas Air 
and Army National Guard/ROTC Students.

sec.21.1068.Probation for Participating Students.
(a) If an exemption recipient fails to meet the performance standards of the 
program, he/she <nl>will<ol> [may apply to his/her institution's selection 
committee to] be placed on probationary status <nl> by the Professor of Military 
Sciences or Professor of Aerospace Studies serving on the selection 
committee.<ol> Such status shall not last for more than <nl> two terms<ol> [one 
term]. 
(b)-(d) (No Change) 

sec.21.1069.Reporting Requirements. 
(a) (No Change) 
(b) By <nl>May 15<ol> [October 15] of each year, the institution is to notify 
the <nl>Adjutant General's Office of the ranking of its applicants. If it fails 
to have enough screened and ranked applicants to use its full allotment by this 
date,<ol> [board of its selections. If selections have not been made by this 
date,] the unused exemptions will be reallocated by the board to other eligible 
institutions.
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 23, 1998.
TRD-9802663
James McWhorter
Assistant Commisisoner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

19 TAC sec.21.1070
The Texas Higher Education Coordinating Board proposes to Chapter 21, Subchapter 
HH, new sec.21.1070 concerning Exemption Program for Texas Air and Army National 
Guard/ROTC Students (Program Reviews). The amendments to the rules are being 
proposed to clarify the responsibilities of the Coordinating Board, the Adjutant 
General's Department and the recruiters; specify the amount to be included in 
the award for room and board; clarify repayment requirements if the student does 
not fulfill his/her contract; clarify requirements for eligibility to 
participate in the program; and clarify the application process and contract 
terms. 
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be the clarification of the responsibilities of the 
various entities involved in the administration of the program and to address 
issues and questions that developed during the process of issuing these 
scholarships for the first time. There will be no effect on state or local 
government or small businesses. There is no anticipated economic costs to 
persons who are required to comply with the rule as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The amendments to the rules are proposed under Texas Education Code, Sections 
54.212 and 61.027, which provides the Texas Higher Education Coordinating Board 
with the authority to adopt rules concerning Exemption Program for Texas Air and 
Army National Guard/ROTC Students. 
There were no other sections or articles affected by the proposed amendments.

sec.21.1070. Program Reviews. 
Any student whose students receive exemptions through this program will be 
subject to an annual program review.
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 23, 1998.
TRD-9802664
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER JJ.The Kenneth H. Ashworth Fellowship Program
19 TAC sec.sec.21.2001-21.2008
The Texas Higher Education Coordinating Board proposes new Chapter 21, 
Subchapter JJ, sec.21.2001 - sec.21.2008 concerning The Kenneth H. Ashworth 
Fellowship Program. The new rules are being proposed to allow awards to be made 
to students enrolled in graduate degree programs in the areas of public affairs, 
public service or public administration who intend to work in Texas after 
completing their graduate studies. The funds for the fellowship have been 
provided by gifts. The fund balance is currently $42,359. The awards would be 
made annually from the earnings generated by the fund.
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be that awards will be made to graduate students in the 
areas of public affairs, public service or public administration. There will be 
no effect on state or local government or small businesses. There is no 
anticipated economic costs to persons who are required to comply with the rule 
as proposed. 
Comments on the new proposed amendments may be submitted to Dr. Don W. Brown, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711. 
The proposed new rules are proposed under Texas Education Code, Section 61.068 
and 61.027 which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning The Kenneth H. Ashworth Fellowship Program. 
There were no other sections or articles affected by the proposed amendments.

sec.21.2001.Purpose. 
The purpose of the Kenneth H. Ashworth Fellowship Program is to provide 
financial assistance to students with financial need enrolled in graduate 
programs in public affairs, public service or public administration.

sec.21.2002.Eligible Institutions.
To be eligible to participate in the program, an institution must be a general 
academic teaching institution as defined in Texas Education Code, Chapter 61.003 
or an independent college or university which is a member of Independent 
Colleges and Universities of Texas, Inc. 

sec.21.2003. Administration of the Program. 
(a) A committee is established to accept and evaluate applications from 
institutions and to select fellowship award recipients. 
(b) The committee consists of three members of the coordinating board staff 
appointed by the commissioner, including one representative from the 
universities division, one from the student services division and one from 
another division of the agency. 

sec.21.2004. Eligible Students.
(a) To qualify for an award, a student must be a Texas resident identified by 
the dean of his/her program of study as needing financial assistance. The 
student must be enrolled as a graduate student in public affairs, public service 
or public administration and intend to work in Texas after completing his/her 
graduate studies. 
(b) In determining student eligibility the committee shall consider the 
following factors relating to each applicant: 
(1) academic ability and promise; 
(2) career plans; and 
(3) individual qualifications, with emphasis on leadership and communication 
skills. 

sec.21.2005.Award Amounts. 
No annual award received through this program may exceed $2,000. 

sec.21.2006.Funding. 
Donations and gifts are the sources of funds for the Kenneth H. Ashworth 
Fellowship fund, which will be deposited (along with its earnings) in the Texas 
Opportunity Plan Fund. Awards will be made from the earnings of the fund. 

sec.21.2007.Submission of Applications and Selection of Recipients. 
(a) Deans of colleges of public affairs, public service and public 
administration at eligible institutions will each be invited to submit 
applications and supportive documentation for up to two applicants per year. 
Applications for the awards must be submitted to the committee each year by 
February 20. 
(b) The committee, following guidelines previously developed and shared with 
institutions, will rank applicants and select the recipients of awards for the 
following academic year. 
(c) The commissioner will then announce award recipients to all participating 
institutions. 

sec.21.2008. Disbursement of Funds.
As soon as possible after the announcement of award recipients, funds 
representing the full annual award will be sent to the business offices of the 
relevant institutions for disbursement to the recipients of the awards.
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 23, 1998.
TRD-9802662
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: April 24, 1998
For further information, please call: (512) 483-6162

TITLE 22. EXAMINING BOARDS
PART XV. Texas State Board of Pharmacy
CHAPTER 309. Generic Substitution
22 TAC sec.309.3
The Texas State Board of Pharmacy proposes an amendment to sec.309.3, concerning 
prescription drug orders. The amendments, if adopted, will establish a list of 
narrow therapeutic index drugs subject to the provisions of sec.40(m) of the 
Texas Pharmacy Act. 
The rules implement recommendations of a Task Force composed of representatives 
from the Board of Pharmacy, Board of Medical Examiners, pharmacy and medical 
associations, and generic and brand name manufacturers. 
Gay Dodson, R.Ph., Executive Director/Secretary has determined that for the 
first five-year period the rule is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the rule. 
Ms. Dodson also has determined that for each year of the first five-year period 
the rule will be in effect the public benefit anticipated as a result of 
enforcing the rule will be the establishment of a list of Narrow Therapeutic 
index drugs subject to sec.40(m) of the Texas Pharmacy Act. 
There will be no effect on small 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 Gay Dodson, R.Ph., Executive 
Director/Secretary, Texas State Board of Pharmacy, 333 Guadalupe Street, Suite 
3-600, Box 21, Austin, Texas, 78701-3942. A public hearing to receive oral 
comments will be held at 9:00 a.m., Tuesday, May 5, 1998, 333 Guadalupe Street, 
Tower 2 Room 225, Austin, Texas. 
The amendment is proposed under the Texas Pharmacy Act (Article 4542a-1, Texas 
Civil Statutes): Section 4 which specifies that the purpose of the Act is to 
protect the public through the effective control and regulation of the practice 
of pharmacy; Section 16(a) which gives the Board the authority to adopt rules 
for the proper administration and enforcement of the Act; and; Section 40(m) 
which specifies that the Board in consultation with the Board of Medical 
Examiners shall establish a list of narrow therapeutic index drugs.
The statutes affected by this rule: Texas Civil Statutes, Article 4542a-1.

sec.309.3. Prescription Drug Orders.
(a)-(c) No change. 
(d) Refills. 
<nl>(1)<ol> <nl>Original substitution instructions. <ol>Refills shall follow the 
original substitution instructions unless otherwise indicated by the 
practitioner or practitioner's agent. 
(2) Narrow therapeutic index drugs.
<nl>(A)<ol> A prescription for a narrow therapeutic index drug on which a 
physician has originally allowed generic substitution may be refilled only by 
using the same drug product by the same manufacturer that the pharmacist last 
dispensed under the prescription, unless otherwise agreed to by the prescribing 
physician, prior to dispensing. 
(B) If a pharmacist does not have the same drug product by the same manufacturer 
in stock to refill the prescription, the pharmacist may dispense a drug product 
that is generically equivalent if the pharmacist notifies: 
<nl>(i)<ol> the patient, at the time the prescription is dispensed, that a 
substitution of the prescribed drug product has been made; and 
<nl>(ii)<ol> the prescribing practitioner of the drug product substitution by 
telephone, facsimile, or mail, at the earliest reasonable time, but not later 
than 72 hours after dispensing the prescription. 
<nl>(C)<ol> For the purpose of this subsection, narrow therapeutic index drugs 
shall be all oral dosage forms of the following: 
<nl>(i)<ol> digoxin; 
<nl>(ii)<ol> phenytoin; 
<nl>(iii)<ol> warfarin sodium; 
(iv) theophylline; 
<nl>(v)<ol> levothyroxine; 
<nl>(vi)<ol> carbamazepine; 
<nl>(vii)<ol> valproic acid; 
<nl>(viii)<ol> lithium; and 
(ix) divalproex sodium. 
<nl>(D)<ol> The board, in consultation with the Board of Medical Examiners, 
shall review the list of narrow therapeutic index drugs subject to this 
subsection when deemed appropriate but at least every two years. 
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 27, 1998.
TRD-9802918
Gay Dodson, R.Ph.
Executive Director/Secretary
Texas State Board of Pharmacy
Proposed date of adoption: May 5, 1998
For further information, please call: (512) 305-8026

PART XXIII. Texas Real Estate Commission
CHAPTER 535.Provisions of the Real Estate License Act
Mandatory Continuing Education
22 TAC sec.535.71
The Texas Real Estate Commission (TREC) proposes an amendment to sec.535.71, 
concerning approval of mandatory continuing education (MCE) providers, courses 
and instructors. The amendment replaces the term salesman with salesperson to 
comply with House Bill 814, 75th Legislature (1997), which requires TREC to use 
the term salesperson in all its rules and documents no later than January 1, 
1999. 
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section. There 
is no anticipated impact on local or state employment as a result of 
implementing the section. 
Mr. Moseley also has determined that for each year of the first five years the 
section as proposed is in effect the public benefit anticipated as a result of 
enforcing the section will be consistency between the section and the agency's 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed section. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by this section is Texas Civil Statutes, Article 
6573a.

sec.535.71.Mandatory Continuing Education: Approval of Providers, Courses and 
Instructors.
(a)-(k) (No change.) 
(l) A course must be devoted to one or more of the subjects specified under the 
course titles in the Act, sec.7(a)(2)-(4) and sec.7(a)(7)-(10), to real estate 
professionalism and ethics or to other subjects approved by the commission for 
MCE credit. MCE courses must be presentations of relevant issues and changes 
within the subject areas as they apply to the practice of real estate in the 
current market or topics which increase or support the licensee's development of 
skill and competence. The commission shall periodically publish lists of 
subjects other than legal topics which are approved for MCE credit. Courses 
approved by the commission for prelicensing education or <nl> salesperson<ol> 
[salesman] annual education requirements provided in the Act, sec.7(d)-(e), may 
be accepted for satisfying MCE requirements provided the student files an MCE 
Form 13, MCE Credit Request for Core Courses, and course meets all of the 
requirements of the commission for core real estate course credit, and MCE 
courses may be accepted by the commission as real estate related courses for 
satisfying the education requirements of sec.7(d)-(e) of the Act. The commission 
may not approve a course which promotes the sale of goods or services by the 
provider or by a vendor affiliated or associated with the provider. Providers 
may sell educational materials, such as textbooks or recordings, related to the 
subjects of the course. Courses related to technology, such as the use of 
personal computers, must be primarily devoted to the application of technology 
to the practice of the licensee. 
(m)-(r) (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 26, 1998.
TRD-9802877
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

Recovery Fund
22 TAC sec.535.81
The Texas Real Estate Commission (TREC) proposes an amendment to sec.535.81, 
concerning fees paid by real estate licensees for the real estate recovery fund. 
The amendment replaces the term salesman with salesperson to comply with House 
Bill 814, 75th Legislature (1997), which requires TREC to use the term 
salesperson in all its rules and documents no later than January 1, 1999. The 
amendment also replaces the gender specific term he with a person for 
consistency. 
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section. There 
is no anticipated impact on local or state employment as a result of 
implementing the section. 
Mr. Moseley also has determined that for each year of the first five years the 
section as proposed is in effect the public benefit anticipated as a result of 
enforcing the section will be consistency between the section and the agency's 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed section. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by this section is Texas Civil Statutes, Article 
6573a. 

sec.535.81. Recovery fund: Fee.
If a person licensed as a real estate <nl>salesperson<ol> [salesman] has paid 
the recovery fund fee, <nl>the person<ol> [he] would not be required to pay a 
recovery fund fee in connection with the processing of an application for real 
estate broker licensure. 
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 26, 1998.
TRD-9802878
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

Licenses
22 TAC sec.sec.535.92, 535.93, 535.95 
The Texas Real Estate Commission (TREC) proposes amendments to sec.sec.535.92, 
535.93 and 535.95, concerning license renewals for real estate licensees. The 
amendments replace the term salesman with salesperson to comply with House Bill 
814, 75th Legislature (1997), which requires TREC to use the term salesperson in 
all its rules and documents no later than January 1, 1999. The amendments also 
replace the gender specific term his with terms which are not gender specific 
for consistency. 
Mark A. Moseley, general counsel, 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 is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency's 
enabling legislation. 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. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendments are proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by these sections is Texas Civil Statutes, Article 
6573a.

sec.535.92.Renewal: Time for Filing; Satisfaction of Mandatory Continuing 
Education Requirements. 
(a)-(d) (No change.) 
(d) An inactive broker or inactive <nl>salesperson<ol> [salesman] may renew a 
license by complying with the renewal procedures established by the commission. 
An inactive licensee shall furnish a residence address at the time the licensee 
becomes inactive and report all subsequent address changes. 
(e) (No change.) 
(f) Each licensee shall, as a condition of maintaining a license, pay the 
renewal fee no later than the day the current license expires. A licensee who 
fails timely to pay a renewal fee must apply for and receive a new active 
license in order to act as a real estate broker or <nl>salesperson<ol> 
[salesman]. If the application is filed within one year after the expiration of 
an existing license, the commission may issue the new license prior to 
completing the investigation of any complaint pending against the applicant or 
of any matter revealed by the application without waiving the right to initiate 
an action to suspend or revoke the license after notice and hearing in 
accordance with the Act, sec.17. 
(g) The commission shall advise each licensee of the time period for filing a 
renewal application and paying the renewal fee by mailing an appropriate notice 
to the licensee's last known business address, or if the licensee is an inactive 
<nl>salesperson<ol> [salesman], to the licensee's last known residence address. 
The notice shall be mailed at least three months before expiration of the 
current license. If the licensee is subject to mandatory continuing education 
(MCE) requirements, the notice must also contain the number of MCE hours for 
which the licensee has been given credit and the number of additional MCE hours 
required for renewal of the license. The commission shall have no obligation to 
so notify an inactive <nl> salesperson<ol> [salesman] who has failed to furnish 
the commission with the <nl>salesperson's<ol> [salesman's] residence address or 
a corporation, limited liability company or partnership that has failed to 
designate an officer, manager or partner who meets the requirements of the Real 
Estate License Act (the Act). The commission may not renew a license issued to a 
corporation, limited liability company or partnership unless the corporation, 
limited liability company or partnership has designated an officer, manager or 
partner who meets the requirements of the Act, including satisfaction of MCE 
requirements. No person may act as designated officer, manager or partner if the 
person has failed to meet MCE requirements. For the purpose of this section, MCE 
requirements for the designated officer, manager or partner must be satisfied 
during the term of any individual broker license held by the officer, manager or 
partner. A designated partner who is not licensed individually as a broker on 
September 1, 1991, shall be considered to have been licensed as a broker on that 
date and must complete MCE required for a two-year license expiring on August 
31, 1993, and for every two years thereafter in order to renew the license of 
the partnership. The commission shall assign a number to an unlicensed 
designated partner to use in lieu of an individual license number when 
completing MCE forms required by the commission. If the individual real estate 
broker license of a designated partner expires, the partnership may only renew 
its license if the designated partner has satisfied MCE requirements that would 
have been imposed if the license of the designated partner had not expired. 
(h)-(k) (No change.) 

sec.535.93.Licensing: Possession of License as Prerequisite. An applicant for 
<nl>salesperson<ol> [salesman] licensure may not perform any act as a real 
estate agent until <nl>the applicant's <ol> [his] sponsoring broker has actually 
received the license.

sec.535.95.Miscellaneous Provisions Concerning License Renewals. 
(a) (No change.) 
(b) <nl>Salesperson<ol> [Salesman] annual education (SAE) requirements that 
would have been imposed for a timely renewal shall be deferred under this 
section to the next renewal of the license. 
(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 February 26, 1998.
TRD-9802879
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

Fees
22 TAC sec.535.101
The Texas Real Estate Commission (TREC) proposes an amendment to sec.535.101, 
concerning fees paid by real estate licensees and applicants. The amendment 
replaces the term salesman with salesperson to comply with House Bill 814, 75th 
Legislature (1997), which requires TREC to use the term salesperson in all its 
rules and documents no later than January 1, 1999.
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section. There 
is no anticipated impact on local or state employment as a result of 
implementing the section. 
Mr. Moseley also has determined that for each year of the first five years the 
section as proposed is in effect the public benefit anticipated as a result of 
enforcing the section will be consistency between the section and the agency's 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed section. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by this section is Texas Civil Statutes, Article 
6573a. 

sec.535.101. Fees.
(a)-(b) (No change.) 
(c) The commission shall charge and collect the following fees: 
(1)-(2) (No change.) 
(3) a fee of $50 for the filing of an original application for a real estate 
<nl>salesperson<ol> [salesman] license; 
(4) a fee of $28 for annual renewal of a real estate <nl> salesperson<ol> 
[salesman] license; 
(5)-(13) (No change.) 
(d)-(e) (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 26, 1998.
TRD-9802880
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

Place of Business
22 TAC sec.sec.535.111-535.113 
The Texas Real Estate Commission (TREC) proposes amendments to sec.sec.535.111-
535.113, concerning a real estate broker's place of business. The amendments 
replace the term salesman with salesperson to comply with House Bill 814, 75th 
Legislature (1997), which requires TREC to use the term salesperson in all its 
rules and documents no later than January 1, 1999. The amendments also replace 
the gender specific term his with terms which are not gender specific for 
consistency. 
Mark A. Moseley, general counsel, 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 is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency s 
enabling legislation. 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. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendments are proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by these sections is Texas Civil Statutes, Article 
6573a. 

sec.535.111. Residence. 
(a) A broker may designate <nl>the broker's<ol> [his] home as <nl>the 
broker's<ol> [his] fixed office.
(b) (No change.) 

sec.535.112. Branch Office. 
(a) A branch office license is required when the public would reasonably 
construe that the broker has an office at a location other than the location of 
<nl>the broker s<ol> [his] main office address.
(b) A branch office license must be applied for and obtained if a broker 
maintains more than one place of business. Even though an office is used only by 
salesmen, it remains the broker's office as <nl>the broker <ol> [he] is 
responsible for all business activities conducted from it. 
(c) (No change.) 
(d) A licensed broker may have as many offices and use as many assumed business 
names as <nl>the broker<ol> [he] desires, provided branch office licenses are 
obtained and the assumed names are filed with the commission. 
(e) (No change.) 

sec.535.113. Display of Licenses.
If a broker maintains more than one office, it is sufficient for the broker to 
display a <nl>salesperson s<ol> [salesman's] license in only one of the offices. 
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 26, 1998.
TRD-9802881
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

Termination of <nl>Salesperson's<ol> [Salesman's] Association with Sponsoring 
Broker
22 TAC sec.sec.535.121-535.123
The Texas Real Estate Commission (TREC) proposes amendments to sec.535.121, 
concerning inactive salesperson license, sec.535.122, concerning reactivation of 
salesperson s license, and sec.535.123, concerning inactive broker license. The 
amendments replace the term salesman with salesperson to comply with House Bill 
814, 75th Legislature (1997), which requires TREC to use the term salesperson in 
all its rules and documents no later than January 1, 1999. 
Mark A. Moseley, general counsel, 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 is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency s 
enabling legislation. 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. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendments are proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by these sections is Texas Civil Statutes, Article 
6573a.

sec.535.121.Inactive License. 
(a) (No change.) 
(b) Death of a sponsoring broker places the <nl>salesperson's <ol> [salesman's] 
license on inactive status, and the <nl>salesperson <ol> [salesman] is not 
authorized to act as a <nl>salesperson <ol> [salesman] until the 
<nl>salesperson<ol> [salesman] becomes sponsored by another broker. 
(c) When the sponsorship of a <nl>salesperson<ol> [salesman] ends, the broker 
shall immediately return the <nl>salesperson's <ol> [salesman's] license to the 
commission. If the sponsorship has ended because the broker has terminated the 
sponsorship, the broker shall immediately so notify the <nl>salesperson<ol> 
[salesman] salesman in writing. If the sponsorship has ended because the 
<nl>salesperson<ol> [salesman] has left the sponsorship, the <nl>salesperson<ol> 
[salesman] shall immediately so notify the broker in writing.
(d) This agency is not authorized to enforce agreements between brokers and 
<nl>salespersons<ol> [salesmen] concerning obligations incident to their working 
relationships. 

sec.535.122.Reactivation of License.
(a) When a <nl>salesperson<ol> [salesman] whose license status is active enters 
the sponsorship of a broker, the <nl>salesperson <ol> [salesman] and broker 
whose sponsorship the <nl>salesperson <ol> [salesman]'s has entered shall notify 
the commission within 10 days, submit the appropriate fee, and request issuance 
of a new license reflecting the new association. The <nl>salesperson<ol> 
[salesman] may act as the broker's <nl>salesperson<ol> [salesman] from the date 
the notice and fee are mailed or delivered to the commission.
(b) When a <nl>salesperson<ol> [salesman] whose license status is inactive 
enters the sponsorship of a broker and the <nl> salesperson<ol> [salesman] is 
subject to mandatory continuing education (MCE) requirements, the 
<nl>salesperson<ol> [salesman] is not returned to active status until MCE 
requirements are satisfied. A <nl> salesperson<ol> [salesman] whose license from 
an original application was effective prior to August 31, 1991, or whose license 
was issued from a renewal of a license expiring prior to November 30, 1991, or 
whose original application or renewal application was subject to educational 
requirements imposed by the Real Estate License Act (Act) sec.7, is not subject 
to MCE requirements as a condition of returning to active status during the term 
of the license issued from the original application or renewal application. The 
commission may not issue a license reflecting the sponsorship or otherwise 
confirm that the <nl>salesperson<ol> [salesman] is authorized to act as a real 
estate agent until the commission has received documentation of satisfaction of 
any required MCE courses in a form acceptable to the commission and all other 
requirements have been met to return the <nl>salesperson's <ol> [salesman's] 
license to active status. For the purposes of this section, the commission may 
accept as documentation a course completion certificate or letter from an 
approved MCE provider or such other proof as is satisfactory to the commission. 

sec.535.123.Inactive Broker Status.
(a) For the purposes of this section, "inactive broker" means a licensed broker 
who does not sponsor <nl>salespersons<ol> [salesmen] or perform any activities 
for which a broker license is required and who has been placed on inactive 
status by the commission. 
(b) To be placed on inactive status, a broker must do the following: 
(1) (No change.) 
(2) confirm in writing that the broker has given any <nl> salespersons<ol> 
[salesmen] sponsored by the broker written notice of termination of sponsorship 
at least 30 days prior to filing the request for inactive status; and 
(3) (No change.) 
(c) -(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 February 26, 1998.
TRD-9802882
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

Nonresidents
22 TAC sec.535.131, sec.535.133
The Texas Real Estate Commission (TREC) proposes amendments to sec.535.131, 
concerning the splitting of fees by real estate licensees with nonresidents, and 
sec.535.133, concerning the consent to service filed by a nonresident licensee. 
The amendments replace the term salesman with salesperson to comply with House 
Bill 814, 75th Legislature (1997), which requires TREC to use the term 
salesperson in all its rules and documents no later than January 1, 1999. For 
consistency, the amendment to sec.535.131 also replaces the gender specific term 
he with a term which is not gender specific. 
Mark A. Moseley, general counsel, 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 is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency's 
enabling legislation. 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. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendments are proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by these sections is Texas Civil Statutes, Article 
6573a.

sec.535.131.Unlawful Conduct; Splitting Fees.
(a)-(c) (No change.) 
(d) If a member of a partnership or an officer of a corporation does not engage 
in the activity of a real estate agent, <nl>the person<ol> [he] is not required 
to be licensed and may share in the income earned by the partnership or 
corporation. 

sec.535.133. Consent to be Sued; Exception to Requirements.
A consent to service of legal process must be filed with the commission by a 
broker or <nl>salesperson<ol> [salesman] who moves to another state. 
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 26, 1998.
TRD-9802884
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

Suspension and Revocation of Licensure 
22 TAC sec.sec.535.141, 535.143, 535.144, 535.146, 535.150, 535.154-535.160
The Texas Real Estate Commission (TREC) proposes amendments to sec.535.141, 
concerning initiation of investigations, sec.535.143, concerning fraudulent 
procurement of a license, sec.535.144, concerning a licensee acting as a 
principal, sec.535.146, concerning failure properly to account for or remit 
money, sec.535.150, concerning acting in a dual capacity, sec.535.154, 
concerning misleading advertising, sec.535.155, concerning association with an 
unlicensed person, sec.535.156, concerning dishonesty, bad faith or 
untrustworthiness, sec.535.157, concerning negligence or incompetence, 
sec.535.158, concerning violations of The Real Estate License Act, sec.535.159, 
concerning failure properly to deposit escrow monies and sec.535.160, concerning 
failure properly to dispurse escrow monies. The amendments replace the term 
salesman with salesperson to comply with House Bill 814, 75th Legislature 
(1997), which requires TREC to use the term salesperson in all its rules and 
documents no later than January 1, 1999. The amendments also replace gender 
specific terms such as his with terms which are not gender specific for 
consistency or revise the sections so as not to use terms limited to a single 
gender. 
Mark A. Moseley, general counsel, 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 is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency's 
enabling legislation. 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. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendments are proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by these sections is Texas Civil Statutes, Article 
6573a. 

sec.535.141.Initiation of Investigation. 
(a) (No change.) 
(b) The commission, on its own motion, with reasonable cause, may initiate an 
investigation of the actions and records of a real estate broker or real estate 
<nl>salesperson<ol> [salesman]. 
(c) A real estate broker is responsible for all acts and conduct performed by a 
real estate <nl>salesperson<ol> [salesman] associated with or acting for the 
broker. A complaint which names a licensed real estate <nl> salesperson<ol> 
[salesman] as the subject of the complaint but does not specifically name the 
<nl>salesperson's<ol> [salesman's] sponsoring broker, is a complaint against the 
broker sponsoring the <nl> salesperson<ol> [salesman] at the time of any alleged 
violation for the limited purposes of determining the broker's involvement in 
any alleged violation and whether the broker fulfilled his or her professional 
responsibilities to the commission, members of the public, and his or her 
clients, provided the complaint concerns the conduct of the <nl>salesperson<ol> 
[salesman] as an agent for the broker. 
(d) The person designated by a licensed corporation, limited liability company 
or partnership to act as its officer, manager or partner is responsible for all 
acts and conduct as a real estate broker performed by or through the business 
entity. A complaint which names a corporation, limited liability company or 
partnership licensed as a broker as the subject of the complaint but which does 
not specifically name the designated officer, manager or partner of the business 
entity, is a complaint against the broker acting as the designated officer, 
manager or partner at the time of any alleged violation for the limited purposes 
of determining the designated person's involvement in any alleged violation and 
whether the designated person fulfilled his or her professional responsibilities 
to the commission, members of the public, and his or her clients. A complaint 
which names a <nl>salesperson <ol> [salesman] sponsored by a licensed 
corporation, limited liability company or partnership but which does not 
specifically name the designated person of the business entity is a complaint 
against the broker who was acting as designated person at the time of any 
alleged violation by the <nl>salesperson<ol> [salesman] for the limited purposes 
of determining the designated person's involvement in any alleged violation and 
whether the designated person fulfilled his or her professional responsibilities 
to the commission, members of the public, and his or her clients, provided the 
complaint concerns the conduct of the <nl>salesperson<ol> [salesman] as an agent 
of the business entity. 
(e)-(g) (No change.) 
(h) A person whose license or certification has been suspended may not during 
the period of any suspension: 
(1) (No change.) 
(2) unless instructed otherwise by the principals to the transaction, continue 
to hold any funds received in a real estate transaction in which the person 
acted as a real estate broker or <nl>salesperson<ol> [salesman]. 
(i) A person whose license is subject to an order suspending the license must 
prior to the suspension taking effect: 
(1) if the person is a real estate <nl>salesperson<ol> [salesman], notify his or 
her sponsoring broker in writing that his or her license will be suspended; 
(2) if the person is a real estate broker, notify in writing any 
<nl>salespersons<ol> [salesmen] he or she sponsors, or any corporation, limited 
liability company or partnership for which the person is designated as an 
officer, manager or partner that: 
(A) (No change.) 
(B) once the suspension is effective any <nl>salesperson <ol> [salesman] 
salesmen he or she sponsors or who are sponsored by the corporation, limited 
liability company or partnership will not be authorized to engage in real estate 
brokerage unless the <nl>salespersons<ol> [salesmen] associate with another 
broker and file a change of sponsorship with the commission or the business 
entity designates a new person and files a change of designated officer, manager 
or partner with the commission; 
(3) (No change.) 
(4) if the person is a real estate <nl>salesperson<ol> [salesman] and is 
directly involved in any real estate transaction in which the 
<nl>salesperson<ol> [salesman] acts as an agent, notify in writing all other 
parties, including principals and other real estate brokers, that the person 
cannot continue performing real estate brokerage services due to the suspension; 
and 
(5) (No change.) 
(j) (No change.) 

sec.535.143.Fraudulent Procurement of License. 
(a) A violation of the Act, sec.15(a)(2), occurs if an applicant for licensure 
for <nl>the applicant<ol> [himself] or a <nl> salesperson<ol> [salesman] makes 
material misstatements, written or oral, in connection with the filing of an 
application to obtain licensure. This does not include an unintentional mistake 
of fact; however, a broker submitting an application as sponsor of a proposed 
<nl>salesperson<ol> [salesman] has an affirmative duty to ascertain that all 
information called for in the application is given and is true, correct and 
complete, whether the application is filled out by <nl>the broker<ol> [him] or 
the prospective <nl>salesperson<ol> [salesman]. 
(b) (No change.)

sec.535.144.When acquiring or disposing of own property.
A licensee, when engaging in a real estate transaction on his <nl> or her<ol> 
own behalf, is obligated to inform any person with whom <nl> the licensee<ol> 
[he] deals that he <nl>or she<ol> is a licensed real estate broker or 
<nl>salesperson<ol> [salesman] acting on his <nl>or her<ol> own behalf either by 
disclosure in any contract of sale or rental agreement, or by disclosure in any 
other writing given prior to entering into any contract of sales or rental 
agreement. A licensee shall not use <nl>the licensee's<ol> [his] expertise to 
the disadvantage of a person with whom <nl>the licensee<ol> [he] deals. 

sec.535.146.Failure to Properly Account for Money; Commingling.
(a) (No change.) 
(b) If a licensee accepts money belonging to others, <nl> the licensee<ol> [he] 
holds such money in a fiduciary capacity. If any or all of the parties to a real 
estate transaction make demand for the money, the licensee must, within a 
reasonable time, properly account for or remit the money. "Reasonable time" 
means 30 days after demand is made for an accounting or for remittance of money 
belonging to others. 
(c)-(e) (No change.) 
(f) If, by virtue of closing a sales transaction, or by virtue of default of one 
of the parties, a licensee acquires ownership of money in <nl> the 
licensee's<ol> [his] escrow account that was originally held in trust for 
another, such money must be removed from the escrow account within a reasonable 
time. "Reasonable time" in this context means within 30 days after the licensee 
acquires ownership of the money. 
(g) Paying operating expenses or making withdrawals from a broker's escrow 
account for any purpose other than proper disbursement of escrow money is prima 
facie evidence of commingling money held in trust with <nl> the broker's<ol> 
[his] own funds. 

sec.535.150.Acting in Dual Capacity.
A licensee may not covertly or through a third party purchase <nl> a<ol> [his] 
principal's property and recover a commission from <nl> the principal<ol> [him]. 
A licensee must disclose to the other party to a transaction that <nl>the 
licensee<ol> [he] is acting in the dual capacity of both agent and principal in 
that transaction.

sec.535.154. Misleading Advertising.
(a) (No change.) 
(b) A broker must file an assumed name certificate with the commission if 
<nl>the broker<ol> [he] transacts real estate business under a name other than 
<nl>the broker's<ol> [his] legal name. 
(c) (No change.) 
(d) A listing may be solicited and accepted only in a broker's name. 
Advertisements concerning a broker's listings must include information 
identifying the advertiser as a real estate broker or agent. <nl>The name of a 
salesperson sponsored by the broker<ol> [His salesman's] name may also be 
included in the advertisement, but in no case shall a broker or 
<nl>salesperson<ol> [salesman] place an advertisement which contains only the 
<nl>salesperson's<ol> [salesman's] name or in any way implies that the 
<nl>salesperson<ol> [salesman] is the person responsible for the operation of a 
real estate brokerage. 
(e) Where a business name includes the name of a licensed <nl> 
salesperson<ol>[salesman] as well as a licensed broker, the broker's name should 
appear first to avoid the possibility that the public would be misled to believe 
that the <nl>salesperson<ol>[salesman] is a broker. A licensee may not conduct 
business solely under the name of a real estate <nl>salesperson<ol> [salesman]; 
provided, however, that a corporation licensed as a real estate broker may do 
business in the name in which it was incorporated by the Secretary of State. 
(f)-(g) (No change.) 

sec.535.155. Associating with Unlicensed Person; Conspiring to Violate Act.
It is a violation of this section for a broker to allow unlicensed personnel 
employed by <nl>the broker<ol> [him] or associated with <nl>the broker<ol> [him] 
to engage in activity for which licensure is required. Unlicensed activity by 
employees, associates or any other person under the control of said broker shall 
constitute a prima facie violation of this section. Aiding, abetting or 
conspiring with any person to circumvent the provisions of the Act constitutes a 
violation of this section.

sec.535.156.Dishonesty; Bad Faith; Untrustworthiness.
(a) A licensee's relationship with the licensee's [his] principal is that of a 
fiduciary. A licensee shall convey to <nl> the<ol> [his] principal all known 
information which would affect the principal's decision on whether or not to 
accept or reject offers; however, the licensee shall have no duty to submit 
offers to the principal after the principal has accepted an offer. 
(b) The licensee must put the interest of <nl>the licensee's <ol> [his] 
principal above <nl>the licensee's<ol> [his] own interest. A licensee must deal 
honestly and fairly with all parties; however, <nl>the licensee<ol> [he] 
represents only <nl>the <ol> [his] principal and owes a duty of fidelity to such 
principal.
(c) A licensee has an affirmative duty to keep <nl>the<ol> [his] principal 
informed at all times of significant information applicable to the transaction 
or transactions in which the licensee is acting as agent for the principal. 
(d) A licensee has a duty to convey accurate information to members of the 
public with whom <nl>the licensee<ol> [he] deals.

sec.535.157.Negligence; Incompetence.
A licensee should not undertake to perform a service or handle a transaction for 
which <nl>the licensee<ol> [he] lacks the requisite knowledge or expertise. 

sec.535.158.Violation of Act.
If a licensee fails to perform any duty imposed by any other section of the Act 
or acts in contravention of any other provision of the Act, such shall be cause 
for the suspension or revocation of <nl>the person's<ol> [his] license.

sec.535.159.Failing to Properly Deposit Escrow Monies.
(a) A broker is not required to maintain a trust account unless <nl> the 
broker<ol> [he] undertakes to accept monies belonging to others. 
(b) (No change.) 
(c) It is up to principals to a transaction to decide who shall act as escrow 
agent or them. A broker may not require the principals to a real estate 
transaction to designate <nl>the broker<ol> [him] as their escrow agent. 
(d)-(e) (No change.) 
(f) A <nl>salesperson<ol> [salesman] may not maintain an escrow account or act 
as an escrow agent. Any money received by a real estate <nl>salesperson<ol> 
[salesman] which is to be held in trust pursuant to a real estate transaction 
must be delivered to the <nl> salesperson's<ol> [salesman's] sponsoring broker 
to be deposited in accordance with the agreement of the principals in the 
transaction. 
(g)-(j) (No change.) 
(k) If a broker accepts a check as escrow agent and later finds that such check 
has been dishonored by the bank on which it was drawn, <nl> the broker<ol> [he] 
shall immediately notify all parties to the transaction. 

sec.535.160.Failing to Properly Disburse Escrow Money.
A broker shall make no disbursal from <nl>the broker's<ol> [his] escrow account 
except in accordance with the agreement under which the money was received. 
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 S5tate, on February 26, 1998.
TRD-9802883
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

Residential Rental Locators
22 TAC sec.535.300
The Texas Real Estate Commission (TREC) proposes an amendment to sec.535.300, 
concerning advertising guidelines for residential rental locators. The amendment 
replaces the term salesman with salesperson to comply with House Bill 814, 75th 
Legislature (1997), which requires TREC to use the term salesperson in all its 
rules and documents no later than January 1, 1999.
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section. There 
is no anticipated impact on local or state employment as a result of 
implementing the section. 
Mr. Moseley also has determined that for each year of the first five years the 
section as proposed is in effect the public benefit anticipated as a result of 
enforcing the section will be consistency between the section and the agency's 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed section. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
The statute that is affected by this section is Texas Civil Statutes, Article 
6573a. 

sec.535.300. Advertising by Residential Rental Locators.
(a) This section is intended to establish standards relating to permissible 
forms of advertising by a person licensed as a real estate broker or 
<nl>salesperson<ol> [salesman] and functioning as a residential rental locator 
("locator"). For the purposes of this section, the term "residential rental 
locator" shall have the meaning provided by Texas Civil Statutes, Article 6573a, 
(the Act), sec.24. For the purposes of this section, the term "advertisement" 
includes, but is not limited to advertising in printed form, signs, or 
advertising using radio, television or personal computers. 
(b)-(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 February 26, 1998.
TRD-9802885
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 465-3900

TITLE 25. HEALTH SERVICES
PART II. Texas Department of Mental Health and Mental Retardation
CHAPTER 404.Protection of Clients and Staff
SUBCHAPTER A.Abuse, Neglect, and Exploitation in TDMHMR Facilities
25 TAC sec.sec.404.1-404.17
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Mental Health and Mental Retardation or in the Texas Register 
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes 
the repeals of sec.sec.404.1 - 404.17, concerning abuse, neglect, and 
exploitation in TDMHMR facilities. New sec.sec.417.501 - 417.518, concerning the 
same, which would replace the repealed sections, are contemporaneously proposed 
in this issue of the Texas Register. 
The repeals would allow for the adoption of new sections. 
Don Green, chief financial officer, has determined that for each year of the 
first five years the sections as proposed will be in effect, there will be no 
significant fiscal cost to state or local government or small businesses as a 
result of administering the sections as proposed because the sections represent 
a reorganization of the provisions in the subchapter proposed for repeal. 
Additionally, the proposed new provisions that represent an expansion of the 
existing required procedures do not result in an increase in administrative, 
human resources, or operational costs. There will be no local employment impact. 
There is no anticipated cost to individuals required to comply with the proposed 
sections. 
Karen Hale, assistant commissioner, has determined that for the first five year 
period the sections are in effect the public benefit anticipated as a result of 
enforcing the sections will be the adoption of new sections with clear 
delineation of changes in TDMHMR and TDPRS protocols and responsibilities both 
as a result of Senate Bill 115 of the 75th Texas Legislature and as a result of 
the MOU. Because the safety and protection of persons with mental illness and 
mental retardation residing in department facilities is fundamental in the 
delivery of services, the procedures described in the subchapter ensure that 
mechanisms are in place to address and investigate allegations of abuse, 
neglect, and exploitation in department facilities. The new sections also 
provide the public with an opportunity to review and comment on important 
provisions of the interagency MOU, which is required to be adopted by rule in 
Section 48.022 of the Human Resources Code. 
Comments on the proposed repeals may 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 sections are proposed under the Texas Health and Safety Code, Title 7, 
sec.532.015, which provides the Texas Mental Health and Mental Retardation Board 
with rulemaking powers; sec.161.132, which requires the board to adopt rules 
that prescribe procedures for the investigation and referral of reports of abuse 
and neglect or illegal, unprofessional, or unethical conduct of a person served 
in a health care facility; Texas Human Resources Code, Chapter 48, which 
requires the reporting and investigations of abuse, neglect, and exploitation of 
elderly and disabled persons; Texas Family Code, Chapter 261, which requires the 
reporting and investigations of abuse or neglect of a child; and Civil Practice 
and Remedies Code, sec.81.006, which requires the reporting of alleged sexual 
exploitation by a mental health services provider to the county prosecuting 
attorney. 
The proposal would affect sec.sec.161.132 and 532.015 of the Texas Health and 
Safety Code; Texas Human Resources Code, Chapter 48; Texas Family Code, Chapter 
261; and Civil Practice and Remedies Code, sec.81.006. 
sec.404.1.Purpose.
sec.404.2.Application.
sec.404.3.Definitions.
sec.404.4.Abuse, Neglect, and Exploitation Defined.
sec.404.5.Reporting Responsibilities of All TDMHMR Employees: Reports to Texas 
Department of Protective and Regulatory Services (TDPRS).
sec.404.6.Reporting of Aggressive Action by Persons Served Other Than Sexual 
Abuse.
sec.404.7.Responsibilities of the Head of the Facility.
sec.404.8.Peer Review.
sec.404.9.Completion of the Investigation.
sec.404.10.Disciplinary Action.
sec.404.11.Abuse, Neglect, and Exploitation Investigative Procedures for 
Facility Contractors, Agents, and Independent School District (ISD) Employees.
sec.404.12.Oversight Responsibilities of the Office of Consumer Services and 
Rights Protection.
sec.404.13.Prohibition Against Retaliatory Action.
sec.404.14.Staff Training in Identifying and Reporting Abuse, Neglect, and 
Exploitation.
sec.404.15.Confidentiality of Investigative Process and Report.
sec.404.16.References.
sec.404.17.Distribution.
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 27, 1998.
TRD-9802941
Charles Cooper
Chairman
Texas Department of Mental Health and Mental Retardation
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 206-4516

CHAPTER 417.Abuse, Neglect, and Exploitation in TDMHMR Facilities
SUBCHAPTER K.Abuse, Neglect, and Exploitation in TDMHMR Facilities
25 TAC sec.sec.417.501-417.518
The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes 
new sec.sec.417.501-417.518, concerning abuse, neglect, and exploitation in 
TDMHMR facilities, with the contemporaneous repeal of Chapter 404, Subchapter A, 
concerning abuse, neglect, and exploitation in TDMHMR facilities. The general 
repeal and readoption of the sections is undertaken pursuant to the 
Appropriations Act, Article IX, Section 167, which requires agencies to repeal 
or to readopt all rules that were in effect prior to September 1, 1997, by 
September 1, 2001. 
The same sections of new Chapter 417, Subchapter K, concerning abuse, neglect, 
and exploitation in TDMHMR facilities, which were previously proposed for public 
comment in the December 5, 1997, issue of the Texas Register, are withdrawn in 
this issue of the Texas Register. Many issues raised during the public comment 
period are addressed in this subsequent proposal. 
The subchapter defines abuse, neglect, and exploitation, and describes the 
procedures for reporting allegations; ensuring the safety and protection of 
persons served involved in allegations; facilitating proper investigations/peer 
reviews; notifying organizations and appropriate persons of issues relating to 
an allegation; contesting the finding of an investigation; ensuring proper 
disciplinary action is taken; collecting data regarding allegations; and 
training staff in identifying, reporting, and preventing abuse, neglect, and 
exploitation. The proposal incorporates the portions of a pending interagency 
memorandum of understanding (MOU) between TDMHMR and TDPRS concerning 
coordination of agency responsibilities. The new sections also include the 
general content of the subchapter proposed for repeal, with minor changes, and a 
number of additional changes which are discussed in this preamble. 
Portions of the proposed subchapter would be reorganized for clarity. Clarifying 
language would be added to the definitions of "contractor" and "unconfirmed." 
The definition of "neglect" would be reorganized and modified to clarify that 
the term is related to a specific person served. The definitions of "abuse of a 
child" and "neglect of a child" would be modified to include the statutory 
amendments to the Texas Family Code, Chapter 261. All language referencing a 
person served as the alleged perpetrator would be deleted because the 
definitions of "abuse," "neglect," and "exploitation" only allow for the 
perpetrator to be an employee, agent, contractor, or unknown. The section 
describing the reporting of aggressive action by persons served would be revised 
for clarity. Language regarding dismissing an employee involved in an allegation 
in accordance with procedures outlined in sec.3.112 of the Human Resources 
Operating Instruction (relating to Separations, Suspensions, and Demotions) 
would be deleted because the statement implies an employee may be dismissed 
based upon an allegation. (The department notes that any employee may be 
dismissed in accordance with procedures outlined in sec.3.112 of the Human 
Resources Operating Instruction, regardless of whether the employee is involved 
in an allegation.) 
Language would be added clarifying that the head of the facility may elect to 
confirm the APS investigator's unconfirmed, inconclusive, or unfounded finding. 
If the head of the facility confirms an unconfirmed, inconclusive, or unfounded 
finding, the confirmed finding can not be appealed to TDPRS. A mechanism and 
time frames for resolving disagreements regarding findings and methodology would 
be added. Language would also be added stating that the head of the facility 
ensures that the (alleged) victim or guardian, if appropriate, is notified of 
the right to receive a copy of the investigate report. 
New language would be added stating that the head of the facility could not 
change a recommended classification to a lower classification (e.g., Class I to 
Class II), but may change a recommended classification to a higher 
classification (e.g., Class II to Class I) in accordance with the evidence and 
the defined classifications. Permissive language regarding disciplinary action 
for confirmed Class III abuse and neglect would be replaced with mandatory 
language. Language would be added stating that the head of the facility is 
responsible for ensuring that contractors take appropriate disciplinary or other 
action as a result of confirmed abuse or neglect by their employees. 
The section concerning investigative procedures for facility contractors, 
agents, and independent school district employees, which is proposed for repeal, 
would instead require each facility contract to describe the procedural 
responsibilities of the facility and the contractor in order to ensure the 
contractor's compliance with the subchapter. Language would be added to 
sec.417.511 stating that upon request, the head of the facility may release a 
copy of the investigative report to the (alleged) victim or guardian provided 
the identities of other persons served and any information determined 
confidential by law are concealed. Language would also be added to sec.417.511 
stating that Advocacy, Inc. is entitled to access the records of the (alleged) 
victim in accordance with its enabling federal statute. 
Don Green, chief financial officer, has determined that for each year of the 
first five years the sections as proposed will be in effect, there will be no 
significant fiscal cost to state or local government or small businesses as a 
result of administering the sections as proposed because the sections represent 
a reorganization of the provisions in the subchapter proposed for repeal. 
Additionally, the proposed new provisions that represent an expansion of the 
existing required procedures do not result in an increase in administrative, 
human resources, or operational costs. There will be no local employment impact. 
There is no anticipated cost to individuals required to comply with the proposed 
sections. 
Karen Hale, assistant commissioner, has determined that for the first five year 
period the sections are in effect the public benefit anticipated as a result of 
enforcing the sections will be the clear delineation of changes in TDMHMR and 
TDPRS protocols and responsibilities both as a result of Senate Bill 115 of the 
75th Texas Legislature and as a result of the MOU. Because the safety and 
protection of persons with mental illness and mental retardation residing in 
department facilities is fundamental in the delivery of services, the procedures 
described in the subchapter ensure that mechanisms are in place to address and 
investigate allegations of abuse, neglect, and exploitation in department 
facilities. The new sections also provide the public with an opportunity to 
review and comment on important provisions of the interagency MOU, which is 
required to be adopted by rule in Section 48.022 of the Human Resources Code. 
Comments on the proposed new sections may 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 sections are proposed under the Texas Health and Safety Code, Title 7, 
sec.532.015, which provides the Texas Mental Health and Mental Retardation Board 
with rulemaking powers; sec.161.132, which requires the board to adopt rules 
that prescribe procedures for the investigation and referral of reports of abuse 
and neglect or illegal, unprofessional, or unethical conduct of a person served 
in a health care facility; Texas Human Resources Code, Chapter 48, which 
requires the reporting and investigations of abuse, neglect, and exploitation of 
elderly and disabled persons; Texas Family Code, Chapter 261, which requires the 
reporting and investigations of abuse or neglect of a child; and Civil Practice 
and Remedies Code, sec.81.006, which requires the reporting of alleged sexual 
exploitation by a mental health services provider to the county prosecuting 
attorney. 
The proposal would affect sec.sec.161.132 and 532.015 of the Texas Health and 
Safety Code; Texas Human Resources Code, Chapter 48; Texas Family Code, Chapter 
261; and Civil Practice and Remedies Code, sec.81.006. 

sec.417.501.Purpose.
The purpose of this subchapter is: 
(1) to define and prohibit abuse, neglect, and exploitation of persons served by 
a facility or contractor of the Texas Department of Mental Health and Mental 
Retardation; and 
(2) to prescribe procedures: 
(A) for the effective reporting of allegations of abuse, neglect, and 
exploitation; 
(B) for ensuring the safety and protection of persons served involved in 
allegations; 
(C) which facilitate proper investigations/peer reviews and preserve the 
integrity of investigations/peer reviews; 
(D) for notifying appropriate organizations and persons of issues relating to an 
allegation; 
(E) for contesting the finding of an investigation; 
(F) for ensuring proper disciplinary action is taken; 
(G) for collecting data regarding allegations; and 
(H) for training staff in identifying, reporting, and preventing abuse, neglect, 
and exploitation.

sec.417.502.Application.
(a) The provisions of this subchapter apply to all facilities of the Texas 
Department of Mental Health and Mental Retardation and their agents. 
(b) All facilities are responsible for amending the contracts of their 
contractors to ensure compliance as specified in this subchapter.

sec.417.503.Definitions.
The following words and terms, when used in this subchapter, have the following 
meanings, unless the context clearly indicates otherwise:
(1) Adult Protective Services (APS) investigator - An employee of the Texas 
Department of Protective and Regulatory Services (TDPRS) with expertise and 
demonstrated competence in conducting investigations. 
(2) Agent - Any individual not employed by the facility but working under the 
auspices of the facility, (e.g., a volunteer, a student).
(3) Allegation - A report by a person suspecting or having knowledge that a 
person served has been or is in a state of abuse, neglect, or exploitation as 
defined in this subchapter. 
(4) Child - A person under 18 years of age who is not and has not been married 
or who has not had the disabilities of minority removed for general purposes. 
(5) Clinical practice - Relates to issues of potentially or allegedly unsafe 
nursing, dental, or medical practice or violations of the Nursing Practice Act, 
Licensed Vocational Nurse Title Act, Dental Practice Act, or Medical Practice 
Act. These include acts or omissions of the physician, dentist, or nurse which 
result from a lack of competence in his/her profession, impaired status, or 
failure to provide adequate medical, nursing, or dental care to a person served.
(6) Confirmed - Term used to describe an allegation which is determined to be 
supported by the preponderance of evidence.
(7) Contractor - Any organization, entity, or individual who contracts with a 
facility and who comes into contact or may come into contact with persons 
served. 
(8) Department - The Texas Department of Mental Health and Mental Retardation 
(TDMHMR). 
(9) Designee - A staff member immediately available who is temporarily or 
permanently appointed to assume designated responsibilities of the head of the 
facility. 
(10) Facility - A state hospital, state school, state center, or state- operated 
community services (SOCS). The term does not include a state-funded community 
hospital (which is an inpatient mental health facility licensed by the Texas 
Department of Health under the Texas Health and Safety Code, Chapter 242, or 
operated by a university health system and exempted from licensure, that 
provides TDMHMR-funded inpatient mental health services pursuant to a contract 
between TDMHMR and a local authority), nor does the term include a psychiatric 
hospital (which is licensed by the Texas Department of Health (TDH) under 
Chapter 577 of the Texas Health and Safety Code). 
(11) Head of the facility - The superintendent or executive director of a 
facility, or designee. 
(12) Incitement - To spur to action or instigate into activity; implies 
responsibility for initiating another's actions.
(13) Inconclusive - Term used to describe an allegation leading to no conclusion 
or definite result due to lack of witnesses or other relevant evidence.
(14) Mental health services provider - An individual, licensed or unlicensed, 
who performs or purports to perform mental health services, including a: 
(A) licensed social worker as defined by Section 50.001, Human Resources Code; 
(B) chemical dependency counselor as defined by Section 1, Chapter 635, Acts of 
the 72nd Legislature, Regular Session, 1991 (Article 4512o, Texas Civil 
Statutes); 
(C) licensed professional counselor as defined by Section 2, Licensed 
Professional Counselor Act (Article 4512g, Texas Civil Statutes);
(D) licensed marriage and family therapist as defined by Section 2, Licensed 
Marriage and Family Therapist Act (Article 4512c-1, Texas Civil Statutes); 
(E) member of the clergy; 
(F) physician who is "practicing medicine" as defined by Section 1.03, Medical 
Practice Act (Article 4495b, Texas Civil Statutes); 
(G) psychologist offering "psychological services" as defined by Section 2, 
Psychologists' Certification and Licensing Act (Article 4512c, Texas Civil 
Statutes); and 
(H) registered nurse as defined by law. 
(15) Nonserious physical injury - Any injury determined not to be serious by the 
examining physician. Examples of nonserious injury may include the following: 
superficial laceration, contusion, abrasion. 
(16) Office of Consumer Services and Rights Protection - The office located at 
the Texas Department of Mental Health and Mental Retardation's Central Office. 
(17) Peer review - A review of clinical and/or medical practice(s) by peer 
physicians and/or dentists, or a review of clinical nursing practices by nurses. 
(18) Perpetrator - The person who has committed an act of abuse, neglect, or 
exploitation.
(19) Perpetrator unknown - Term used to describe instances in which abuse, 
neglect, or exploitation is evident but positive identification of the 
responsible person cannot be made, and in which self-injury has been eliminated 
as the cause. 
(20) Person served - Any person receiving services from a facility or 
contractor, including those persons who are physically away from the 
facility/contractor but who are still carried on the rolls of the 
facility/contractor.
(21) Preponderance of evidence - The greater weight of evidence, or evidence 
which is more credible and convincing to the mind. 
(22) PMAB or Prevention and Management of Aggressive Behavior - The department's 
proprietary risk management program which uses the least intrusive, most 
effective options to reduce the risk of injury for persons served and for staff 
from acts or potential acts of aggression. 
(23) Reporter - The person filing a report of alleged abuse, neglect, or 
exploitation.
(24) Retaliatory action - Any action intended to inflict emotional or physical 
harm or inconvenience on a person that is taken because the person has reported 
abuse, neglect, or exploitation. This includes, but is not limited to, 
harassment, disciplinary measures, discrimination, reprimand, threat, and 
criticism. 
(25) Review authority - An individual or panel of individuals who, at the 
discretion and request of the head of the facility, reviews selected cases of 
abuse, neglect, or exploitation, including those that are confirmed, 
unconfirmed, unfounded, or inconclusive. The review authority may include a 
member of the facility's public responsibility committee. 
(26) Serious physical injury - An injury determined to be serious by the 
examining physician. Examples of serious injury may include the following: 
fracture; dislocation of any joint; internal injury; any contusion larger than 
two and one half inches in diameter; concussion; second or third degree burn.
(27) Sexual abuse - Any sexual activity involving an employee, agent, or 
contractor and a person served. Sexual activity includes, but is not limited to: 
(A) kissing with sexual intent; 
(B) hugging with sexual intent; 
(C) stroking with sexual intent; 
(D) fondling with sexual intent; 
(E) oral sex or sexual intercourse; 
(F) request or suggestion or encouragement for the performance of sex; 
(G) sexual exploitation as defined in this section; and 
(H) sexual assault as defined in sec.22.011 of the Texas Penal Code (referenced 
as Exhibit A in sec.417.516 of this title (relating to Exhibits)). 
(28) Sexual exploitation - A coercive or manipulative pattern, practice, or 
scheme of conduct, which may include sexual contact, that can reasonably be 
construed as being for the purposes of sexual arousal or gratification or sexual 
abuse of any person. The term does not include obtaining information about a 
patient's sexual history within standard accepted clinical practice. 
(29) Sexually transmitted disease - Any infection, with or without symptoms or 
clinical manifestations, that is or may be transmitted from one person to 
another as a result of sexual contact between persons.
(30) TDPRS - The Texas Department of Protective and Regulatory Services. 
(31) Unconfirmed - Term used to describe an allegation in which a preponderance 
of evidence exists to prove that abuse, neglect, or exploitation did not occur. 
(32) Unfounded - Term used to describe an allegation that is spurious or 
patently without factual basis. 

sec.417.504.Prohibition and Definitions of Abuse, Neglect, and Exploitation.
(a) Abuse, neglect, and exploitation of any person served is prohibited. 
(b) For the purposes of this subchapter, the terms "abuse," "neglect," and 
"exploitation" are defined as follows when the alleged perpetrator is an 
employee, agent, contractor, or is unknown. 
(1) Abuse includes: 
(A) any act or failure to act performed knowingly, recklessly, or intentionally, 
including incitement to act, which caused or may have caused physical injury or 
death to a person served; 
(B) any act of inappropriate or excessive force or corporal punishment, 
regardless of whether the act results in an injury to a person served; 
(C) any use of chemical or bodily restraints not in compliance with federal and 
state laws and regulations; 
(D) sexual abuse as defined in sec.417.503 of this title (relating to 
Definitions); or 
(E) any act or use of verbal or other communication (including gestures) to: 
(i) curse, vilify, or degrade a person served; or 
(ii) threaten a person served with physical or emotional harm.
(2) Abuse of a child includes the following acts or omissions: 
(A) mental or emotional injury to a child that results in an observable and 
material impairment in the child's growth, development, or psychological 
functioning; 
(B) causing or permitting the child to be in a situation in which the child 
sustains a mental or emotional injury that results in an observable and material 
impairment in the child's growth, development, or psychological functioning; 
(C) physical injury that results in substantial harm to the child, or the 
genuine threat of substantial harm from physical injury to the child, including 
an injury that is at variance with the history or explanation given and 
excluding an accident or reasonable discipline by a parent, guardian, or 
managing or possessory conservator that does not expose the child to a 
substantial risk of harm; 
(D) failure to make a reasonable effort to prevent an action by another person 
that results in physical injury that results in substantial harm to the child; 
(E) sexual contact harmful to a child's mental, emotional, or physical welfare;
(F) failure to make a reasonable effort to prevent sexual contact harmful to a 
child; 
(G) compelling or encouraging the child to engage in sexual conduct as defined 
by Section 43.01, Penal Code; 
(H) causing, permitting, encouraging, engaging in, or allowing the 
photographing, filming, or depicting of the child if the person knew or should 
have known that the resulting photograph, film, or depiction of the child is 
obscene as defined by Section 43.21, Penal Code, or pornographic;
(I) the current use by a person of a controlled substance as defined by Chapter 
481, Texas Health and Safety Code, in a manner or to the extent that the use 
results in physical, mental, or emotional injury to a child; or 
(J) causing, expressly permitting, or encouraging a child to use a controlled 
substance as defined by Chapter 481, Texas Health and Safety Code. 
(3) Neglect means a negligent act or omission by any person responsible for 
providing services, which caused or may have caused physical or emotional injury 
or death to a person served, or which placed a person served at risk of physical 
or emotional injury or death. Neglect includes, but is not limited to:
(A) the failure to establish or carry out an appropriate individual program plan 
or treatment plan for a specific person served; 
(B) the failure to provide adequate nutrition, clothing, or health care to a 
specific person served; or 
(C) the failure to provide a safe environment for a specific person served, 
including the failure to maintain adequate numbers of appropriately trained 
staff. 
(4) Neglect of a child includes the following acts or omissions: 
(A) placing the child in or failing to remove the child from a situation that a 
reasonable person would realize requires judgment or actions beyond the child's 
level of maturity, physical condition, or mental abilities and that results in 
bodily injury or a substantial risk of immediate harm to the child; 
(B) the failure to seek, obtain, or follow through with medical care for the 
child, with the failure resulting in or presenting a substantial risk of death, 
disfigurement, or bodily injury or with the failure resulting in an observable 
and material impairment to the growth, development, or functioning of the child; 
(C) the failure to provide the child with food, clothing, or shelter necessary 
to sustain the life or health of the child, excluding failure caused primarily 
by financial inability unless relief services had been offered and refused; 
(D) placing a child in or failing to remove the child from a situation in which 
the child would be exposed to a substantial risk of sexual conduct harmful to 
the child; or 
(E) the failure by the person responsible for a child's care, custody, or 
welfare to permit the child to return to the child's home without arranging for 
the necessary care for the child after the child has been absent from the home 
for any reason, including having been in residential placement or having run 
away. 
(5) Exploitation means the illegal or improper act or process of using a person 
served or the resources of a person served for monetary or personal benefit, 
profit, or gain. 
(c) In this subchapter, the terms "abuse" and "neglect" incorporate "abuse of a 
child" and "neglect of a child." 
(d) Abuse, neglect, or exploitation does not include: 
(1) the proper use of restraints and seclusion, including PMAB, and the approved 
application of behavior modification techniques as described in: 
(A) Chapter 405, Subchapter F of this title, relating to Voluntary and 
Involuntary Behavioral Interventions in Mental Health Programs;
(B) Chapter 404, Subchapter E of this title, relating to Rights of Persons 
Receiving Mental Health Services; and 
(C) Chapter 405, Subchapter H of this title, relating to Behavior Management - 
Facilities Serving Persons With Mental Retardation; 
(2) other actions taken in accordance with the rules of the department; 
(3) such actions as an employee/agent/contractor may reasonably believe to be 
immediately necessary to avoid imminent harm to self, persons served, or other 
individuals if such actions are limited only to those actions reasonably 
believed to be necessary under the existing circumstances. Such actions do not 
include acts of unnecessary force or the inappropriate use of restraints and 
seclusion, including PMAB; or 
(4) general complaints (e.g. regarding rights violations, theft of property, the 
daily administrative operations of a facility, the failure to carry out 
individual program/treatment plans, or the failure to maintain adequate numbers 
of appropriately trained staff) that do not relate to a specific incident or 
allegation involving a specific person served. (Within 24 hours of receipt of 
such a complaint, the APS investigator refers the complaint to the head of the 
facility using the Adult Protective Services Referral Form, referenced as 
Exhibit B in sec.417.516 of this title (relating to Exhibits), who ensures the 
complaint is investigated administratively by the head of the facility, the 
facility rights officer, or other appropriate parties.)

sec.417.505.Reporting Responsibilities of All TDMHMR Employees, Agents, and 
Contractors: Reports to Texas Department of Protective and Regulatory Services 
(TDPRS).
(a) Reporting suspected abuse, neglect, or exploitation. 
(1) Each employee/agent/contractor who suspects or has knowledge that a person 
served is being abused, neglected, or exploited shall make a verbal report to 
TDPRS immediately, if possible, but in no case more than one hour after 
suspicion or after learning of the incident, by calling 1-800-647-7418.
(2) Each employee/agent/contractor who suspects or has knowledge that a person 
served has been abused, neglected, or exploited, including prior to admission, 
during an absence, or while in residence at the facility, shall make a verbal 
report to TDPRS immediately, if possible, but in no case more than one hour 
after suspicion or after learning of the incident, by calling 1-800-647-7418. 
(3) If the person making the allegation is not an employee/agent/contractor 
(e.g., a person served, a guest), staff shall assist the person in making the 
report, if necessary. 
(b) Any pregnancy of a person served, provided there is medical verification 
that there is reasonable expectation that conception could have occurred while 
the person was a resident of the facility or contractor, or any diagnosis of a 
sexually transmitted disease in a person served which could have occurred while 
the person was a resident of the facility or contractor, shall be reported in 
keeping with the provisions of this subchapter as possible abuse or neglect. 
Additional reporting requirements are described in Chapter 404, Subchapter G of 
this title (relating to Unusual Incidents Involving Persons Served by TXMHMR 
Facilities). 
(c) Failure to make reports as required by this section within the allotted time 
period without sufficient justification is considered a violation of this 
section and makes the employee/agent subject to disciplinary action and possible 
criminal prosecution. An employee/agent found to have made a false statement of 
fact during an investigation is also subject to disciplinary action. 
(d) In addition to reporting to TDPRS, employees shall take appropriate steps to 
secure evidence related to an allegation, if any, consistent with "Guidelines 
for Securing Evidence," referenced as Exhibit C in sec.417.516 of this title 
(relating to Exhibits). 

sec.417.506.Reporting of Aggressive Action by Persons Served.
(a) If an aggressive action by a person served, including non-consensual 
sexuality activity between persons served, occurs as a result of possible 
neglect, then the action is reported as neglect in accordance with this 
subchapter. 
(b) If an aggressive action by a person served, including non-consensual 
sexuality activity between persons served, is an unusual incident as defined in 
Chapter 404, Subchapter G of this title (relating to Unusual Incidents Involving 
Persons Served by TXMHMR Facilities), then the action is reported in accordance 
with that subchapter. 

sec.417.507.Prohibition Against Retaliatory Action.
(a) Retaliatory action. Any employee/agent or any individual affiliated with an 
employee/agent is prohibited from engaging in retaliatory action against an 
employee/agent or person served who in good faith reports an allegation. 
(1) Any person who believes he or she is being subjected to retaliatory action 
upon reporting an allegation, or who believes an allegation has been ignored 
without cause, should immediately contact the head of the facility. The person 
may also contact: 
(A) the Office of Consumer Services and Rights Protection at the dedicated toll-
free number for state hospital, state schools, state centers, and state-operated 
community services at 1-800-252-8154; or 
(B) the Office of the Attorney General at 512/463-2120 which, under the 
Whistleblower Act, Texas Civil Statutes, Article 6252-16a, may prosecute a 
supervisor who suspends or terminates a public employee for reporting a 
violation of law to law enforcement authorities. 
(2) Retaliatory action against a person served which might be considered abuse, 
neglect, or exploitation is reported to TDPRS in accordance with this 
subchapter. 
(b) Disciplinary action. Any employee/agent found to have engaged in retaliatory 
action is subject to disciplinary action. 

sec.417.508.Responsibilities of the Head of the Facility.
(a) All allegations are investigated in accordance with Texas Administrative 
Code, Chapter 710, Subchapter A, Title 40 (relating to Abuse, Neglect, and 
Exploitation of Persons Served by TDMHMR Facilities). Upon receiving a report of 
an allegation the APS investigator immediately notifies the head of the facility 
of the allegation and whether or not the allegation will be reported to a law 
enforcement agency. 
(b) Immediately upon notification of an allegation, if possible, but in no case 
more than one hour later, the head of the facility takes measures to ensure the 
safety of the person(s) served involved in the allegation, including the 
following actions: 
(1) The head of the facility ensures immediate and on-going medical attention is 
provided to the alleged victim and any other person served involved in the 
incident (e.g., treatment for injuries, physician's exam, screening and 
treatment for sexually transmitted diseases). The physician's exam and treatment 
of abuse/neglect-related injuries is documented on the Client Injury/Incident 
Report form (referenced as Exhibit D in sec.417.516 of this title (relating to 
Exhibits)), with a copy submitted to the APS investigator. The physician's 
documentation during or following the examination should address the injury's 
cause, age, and treatment, to the extent that the information can be determined, 
as well as the timing of the medical exam with regard to the date the injury was 
received. All issues relating to clinical practice are referred to the 
medical/clinical director for consultation. 
(2) The head of the facility ensures the protection of the alleged victim in 
keeping with "Guidelines for Separation of Alleged Victim and Alleged 
Perpetrator During Abuse/Neglect Investigations" (referenced as Exhibit E in 
sec.417.516 of this title (relating to Exhibits)), which may include, but is not 
limited to, the following actions: 
(A) reassignment of the employee/agent to a non-direct care area; 
(B) allowing the employee/agent to remain in his or her current position pending 
investigation; 
(C) granting the employee emergency leave; or 
(D) suspending the agent pending investigation. 
(3) The head of the facility ensures psychological counseling is provided to the 
alleged victim and, as necessary, to any other person served who may have 
witnessed or been affected by the incident. The counseling shall be provided in 
a timely manner while preserving the integrity of the investigation. 
(4) If the alleged perpetrator is known but is not an employee/agent (e.g., 
family member, friend, guest), the head of the facility imposes a restriction on 
the alleged perpetrator's access to the alleged victim pending investigation. 
The restriction should be documented in the record of the alleged victim. 
(5) Immediately, but in no case later than 24 hours after notification of an 
allegation, the head of the facility notifies the following individuals of the 
allegation: 
(A) the alleged victim (if appropriate); 
(B) the guardian; and 
(C) any other person designated as having the authority to know as indicated in 
the alleged victim's records (e.g., spouse, parent).
(c) The head of the facility designates a contact staff person to coordinate 
with the APS investigator to ensure private interview space, private telephones, 
and employees/agents are available to the APS investigator. The head of the 
facility shall require employees/agents to cooperate with APS investigators so 
that the investigators are afforded immediate access to all records and evidence 
and provided keys as are necessary to conduct an investigation in a timely 
manner. The head of the facility shall assist in whatever way possible to make 
employees/agents who are relevant to the investigation available in an 
expeditious manner. Employees/agents who fail to cooperate with an investigation 
are subject to disciplinary action. 
(d) In accordance with the Civil Practice and Remedies Code, sec.81.006, the 
head of the facility ensures that allegations of sexual exploitation by a mental 
health services provider (as defined) are reported, not later than the 30th day 
after the date the head of the facility became aware of the allegation, to the 
prosecuting attorney in the county in which the alleged sexual exploitation 
occurred and any state licensing board that has responsibility for the mental 
health services provider's licensing. The report includes: 
(1) the reporter's name, as released by TDPRS in accordance with sec.710.7(c)(1) 
of title 40 (relating to Adult Protective Services (APS) Investigator); 
(2) the alleged victim's name, unless the alleged victim wishes to remain 
anonymous; and 
(3) the reasons for suspicion that sexual exploitation has occurred. 

sec.417.509.Peer Review.
(a) If the allegation involves the actions of a physician, dentist, registered 
nurse, or licensed vocational nurse, then a determination of whether the 
allegation involves the clinical practice, as defined in sec.417.503 of this 
title (relating to Definitions), of the physician, dentist, registered nurse, or 
licensed vocational nurse is made by the head of the facility, the APS 
investigator, and the facility medical\dental\nursing director, as appropriate 
to the discipline involved. 
(1) If the allegation does not involve clinical practice the APS investigator 
pursues an investigation. 
(2) If the allegation does involve clinical practice the APS investigator refers 
the allegation to the head of the facility, who immediately refers the 
allegation to the facility medical\dental\nursing director, as appropriate to 
the discipline involved, for review for possible peer review as follows: 
(A) for allegations involving physicians and dentists, Investigative Medical 
Peer Review Operating Instruction 408-2; and 
(B) for allegations involving registered nurses and licensed vocational nurses, 
Investigative Nursing Peer Review Operating Instruction 408-1. 
(b) If the allegation involves the facility medical\dental\nursing director, the 
head of the facility refers the allegation to the TDMHMR medical\dental\nursing 
director, as appropriate to the discipline involved, for review for possible 
peer review in accordance with subsection (a)(2)(A) and (B) of this section.
(c) All allegations involving physicians, nurses (RN or LVN), and dentists, 
regardless of type or clinical/nonclinical practice, are reported by the head of 
the facility to the TDMHMR medical\nursing\dental director, as appropriate to 
the discipline, within five working days of the allegation. The report may be 
brief, but will include; 
(1) the date of the alleged incident; 
(2) name of the alleged victim and alleged perpetrator;
(3) a brief description of the incident; and 
(4) a brief description of the investigation planned.
(d) The TDMHMR medical\dental\nursing director, as appropriate to the discipline 
involved, ensures that reports of allegations of abuse and neglect are made if 
required by law to the licensing authority for the discipline under review, 
i.e., the Board of Medical Examiners for physicians, the Board of Dental 
Examiners for dentists, the Board of Nurse Examiners for registered nurses, or 
the Board of Licensed Vocational Nurses for licensed vocational nurses. 
(e) When an allegation is determined to involve the clinical practice of a 
physician, nurse (RN or LVN), or dentist, then the head of the facility ensures 
that the alleged victim and/or guardian or parent (if the alleged victim is a 
child) are informed that the allegation has been referred for peer review. 

sec.417.510.Completion of the Investigation.
(a) Upon completion of the investigation in accordance with Chapter 710, 
Subchapter A, Title 40 (relating to Abuse, Neglect, and Exploitation of Persons 
Served by TDMHMR Facilities), the APS investigator submits to the head of the 
facility a copy of the complete investigative report, with any information that 
would reveal the identity of the reporter concealed, including:
(1) a statement of the allegation; 
(2) a summary of the investigation; 
(3) an analysis of the evidence, including factual information related to what 
occurred, how the evidence was weighed, and what testimony was considered 
credible; 
(4) the investigator's finding that the allegation is confirmed, unconfirmed, 
inconclusive, or unfounded; 
(5) a recommendation of how the allegation should be classified in accordance 
with the classification system outlined in sec.417.512(a) of this title 
(relating to Classifications and Disciplinary Actions); 
(6) the name of the (alleged) perpetrator, if known;
(7) the physician's exam and treatment of abuse/neglect-related injuries 
documented on the department's client injury/incident report; 
(8) photographs relevant to the investigation, including photographs depicting 
the existence of injuries (taken within 24 hours after the report of the 
allegation) or the non-existence of injuries, when appropriate;
(9) all witness statements and supporting documents;
(10) any recommendations resulting from the investigation; and 
(11) a Client Abuse and Neglect Report (AN-1-A) form, referenced as Exhibit G in 
sec.417.516 of this title (relating to Exhibits), reflecting the information 
contained in paragraphs (4)-(6) of this subsection.
(b) Upon receiving the written investigative report from the APS investigator, 
the head of the facility may submit the report and concerns articulated by the 
APS investigator to a review authority for review. 
(1) The review authority may interview witnesses in the course of its review. 
(2) If the review authority is reviewing a case determined by the APS 
investigator to be unfounded, it may consult with the APS investigator if 
appropriate. If the review authority determines that there is good cause to 
reopen the investigation (e.g., new evidence or information that was not 
previously available during the investigation), the head of the facility may 
contact the local APS supervisor to request that the case be re-opened. 
(3) The review authority submits a report of its review to the head of the 
facility. 
(c) The head of the facility: 
(1) reviews the APS investigator's report; 
(2) reviews the review authority's report, if applicable; and 
(3) interviews witnesses, if necessary. 
(d) The rights of employees who appear before the review authority or the head 
of the facility are outlined in "Procedures in Facility Abuse, Neglect, and 
Exploitation Investigations and Thurston Rebuttal Proceedings," referenced as 
Exhibit H in sec.417.516 of this title (relating to Exhibits).
(e) A confirmed finding can not be changed by the head of the facility. However, 
if the head of the facility disagrees with the APS investigator's unconfirmed, 
inconclusive, or unfounded finding, the head of the facility may elect to 
confirm the finding. If the head of the facility elects to confirm the finding, 
then the finding can not be appealed to TDPRS.
(f) If the head of the facility believes that the methodology used in conducting 
the investigation was flawed (e.g., failure to collect or consider evidence, 
such as witnesses' statement, progress notes, test results), the head of the 
facility may request a review by submitting a completed Request by Head of 
Facility/SOCS/Center for Review of Finding form to the regional APS program 
administrator. (The Request by Head of Facility/SOCS/Center for Review of 
Finding form is referenced as Exhibit F in sec.417.516 of this title (relating 
to Exhibits).) The request for review must be filed within 14 calendar days 
after receiving the investigative report. 
(1) The regional APS program administrator reviews the case within 14 calendar 
days of receipt. 
(2) The regional APS program administrator notifies the head of the facility in 
writing of the results of the review. 
(3) If methodological concerns cannot be resolved at the regional level, the 
head of the facility sends the request to the APS director, along with a copy of 
the written investigative report and the regional APS program administrator's 
review, for review by Adult Protection Services (APS). 
(4) A review is completed by APS within 14 calendar days of receipt. 
(5) APS notifies the head of the facility in writing of the results of the 
review. 
(g) If the head the facility disagrees with: 
(1) the APS investigator's finding, the head of the facility may contest the 
finding by submitting a copy of the written investigative report and a completed 
Request by Head of Facility/SOCS/Center for Review of Finding form to the APS 
Director, TDPRS, P.O. Box 149030, E-561, Austin, TX 78714-9030. (The Request by 
Head of Facility/SOCS/Center for Review of Finding form is referenced as Exhibit 
F in sec.417.516 of this title (relating to Exhibits.) When filing the request 
for review, the head of the facility will include a copy of the report by the 
review authority, if applicable and relevant. The request for review must be 
filed within 14 calendar days after receiving the investigative report. 
(A) A review is completed by APS within 14 calendar days of receipt. 
(B) APS notifies the head of the facility in writing of the results of the 
review. 
(2) the APS review as described in paragraph (1)(A) of this subsection, the head 
of the facility may contest the review by apprising the TDMHMR director of 
mental health facilities/mental retardation facilities/state-operated community 
MHMR services, as appropriate. If the TDMHMR director also disagrees with the 
APS review, the TDMHMR director may request a decision by the TDMHMR 
commissioner and the TDPRS executive director. The decision of the TDMHMR 
commissioner and the TDPRS executive director can not be contested. 
(h) The final finding is the last uncontested finding, which may be: 
(1) the APS investigator's finding in accordance with subsection (a)(4) of this 
section; 
(2) the head of the facility's confirmed finding in accordance with subsection 
(e) of this section; 
(3) the APS finding in accordance with subsection (g)(1) of this section; or 
(4) the TDMHMR commissioner and the TDPRS executive director's decision in 
accordance with subsection (g)(2) of this section. 
(i) Within 30 calendar days of receipt of the investigative report or the final 
finding, the head of the facility is responsible for completing the Client Abuse 
and Neglect Report (AN-1-A) form, referenced as Exhibit G in sec.417.516 of this 
title (relating to Exhibits). 
(j) The APS investigator promptly notifies the reporter in writing of the final 
finding and the method of appealing the final finding (if the final finding was 
not made by the head of the facility as provided by subsection (e) of this 
section). 
(k) The head of the facility ensures that the (alleged) victim and/or guardian 
and any other person who was previously notified of the allegation (as provided 
for in sec.417.508(b)(5) of this title (relating to Responsibilities of the Head 
of the Facility)), are promptly notified of: 
(1) the final finding; 
(2) the method of appealing the final finding (if the final finding was not made 
by the head of the facility as provided by subsection (e) of this section); and 
(3) information regarding findings that were contested.
(l) The head of the facility ensures that the (alleged) victim or guardian is 
notified of the right to receive a copy of the investigative report in 
accordance with sec.417.511(b) of this title (relating to Confidentiality of 
Investigative Process and Report) upon request. 
(m) The head of the facility informs the alleged perpetrator of the final 
finding. 
(n) The head of the facility shall establish a mechanism for evaluating any 
recommendations concerning problematic patterns or trends identified during the 
investigation by the APS investigator and the review authority, if applicable. 

sec.417.511.Confidentiality of Investigative Process and Report.
(a) The reports, records, and working papers used by or developed in the 
investigative process and the resulting written investigative report regarding 
allegations are confidential and may be disclosed only as provided under law. 
Information discussed during deliberations of abuse, neglect, and exploitation 
investigations may not be discussed outside the purview of those deliberations 
with the exception of the concerns and recommendations which are to be addressed 
by the appropriate person(s) or as otherwise allowed in sec.417.510 of this 
title (relating to Completion of the Investigation) and sec.417.512 of this 
title (relating to Classifications and Disciplinary Actions), or otherwise 
required by law. 
(b) Upon request, the head of the facility may release a copy of the 
investigative report to the (alleged) victim or guardian provided the identities 
of other persons served and any information determined confidential by law are 
concealed. 
(c) Advocacy, Inc. is entitled to access the records of the (alleged) victim in 
accordance with 42 USC sec.10806 or sec.6042(I). 

sec.417.512.Classifications and Disciplinary Actions.
(a) Following an investigation, the APS investigator recommends a classification 
for all allegations according to the following system: 
(1) Class I abuse means: 
(A) any act or failure to act performed knowingly, recklessly, or intentionally, 
including incitement to act, which caused or may have caused serious physical 
injury to a person served; or 
(B) any sexual abuse, without regard to injury. 
(2) Class II abuse means: 
(A) any act or failure to act performed knowingly, recklessly, or intentionally, 
including incitement to act, which caused or may have caused nonserious physical 
injury to a person served; 
(B) any act of inappropriate or excessive force or corporal punishment, 
including striking or pushing a person served, regardless of whether the act 
results in nonserious physical injury to a person served; or 
(C) exploitation. 
(3) Class III abuse means any act or use of verbal or other communication 
(including gestures) to: 
(A) curse, vilify, or degrade a person served; or 
(B) threaten a person served with physical or emotional harm.
(4) Neglect means a negligent act or omission by any person responsible for 
providing services in a facility or contractor, which caused or may have caused 
physical or emotional injury or death to a person served, or which placed a 
person served at risk of physical or emotional injury or death. 
(b) Under no circumstances may the head of the facility change a recommended 
classification to a lower classification (e.g., Class I to Class II). However, 
the head of the facility may change a recommended classification to a higher 
classification (e.g., Class II to Class I) in accordance with the evidence and 
subsection (a) of this section. 
(c) The head of the facility is responsible for taking prompt and proper 
disciplinary action when an allegation involving an employee/agent is confirmed. 
(1) Disciplinary action against an employee is based on criteria including, but 
not limited to: 
(A) the seriousness of the abuse, neglect, and/or exploitation;
(B) the circumstances surrounding the incident; 
(C) the employee's work record; 
(D) repeat offenses; and 
(E) if a repeat violation, the length of time between violations.
(2) When an allegation has been confirmed the head of the facility takes the 
following disciplinary action. 
(A) Class I abuse. The employee/agent is dismissed. 
(B) Class II abuse. 
(i) The employee is placed on suspension for up to 10 days, demoted, or 
dismissed. If the employee is exempt under the provisions of the Fair Labor 
Standards Act (FLSA), the suspension shall be in compliance with relevant 
provisions of the FLSA and current TDMHMR personnel policies. 
(ii) The agent is dismissed. 
(C) Class III abuse or neglect. 
(i) The employee receives a written reprimand which becomes a part of the 
employee's personnel file, or the employee is placed on suspension for up to 10 
days, demoted, or dismissed. If the employee is exempt under the provisions of 
the FLSA the suspension shall be in compliance with relevant provisions of the 
FLSA and current TDMHMR personnel policies. 
(ii) The agent is dismissed. 
(d) When disciplinary action is taken against an employee based on confirmed 
abuse or neglect, the head of a facility notifies the employee in writing of the 
disciplinary action taken and any right to a grievance hearing the employee may 
have under the department's internal policies and procedures relating to 
employee grievances. If the employee files a complaint in response to a written 
reprimand resulting from confirmed abuse or neglect, or if the employee files a 
grievance in response to disciplinary action resulting from confirmed abuse or 
neglect, the head of the facility, upon the employee's written request, provides 
the employee with a copy of the investigative report. Before receiving the 
report, the employee is required to complete a document acknowledging that the 
report's content must be kept confidential. Additional documentary evidence, if 
any, may be accessed by the employee in accordance with procedures outlined in 
Section 3.116 of the Human Resources Operating Instruction (relating to Employee 
Grievances). 
(e) When disciplinary action is taken against an agent as a result of confirmed 
abuse or neglect, the head of a facility notifies the agent in writing of the 
disciplinary action taken. 
(f) The head of the facility ensures the victim and/or guardian or parent (if 
the victim is a child) are promptly notified of: 
(1) the disciplinary action taken against the employee/agent;
(2) the employee's right to request a grievance hearing to dispute the 
disciplinary action; and 
(3) an offer to inform the victim and/or guardian or parent (if the victim is a 
child) of the occurrence of a grievance hearing if requested. 
(g) If Advocacy, Inc. informs TDMHMR that it represents the victim of confirmed 
Class I abuse, TDMHMR will notify Advocacy, Inc. if the dismissed employee 
requests a grievance hearing. 
(h) If requested by the head of the facility, the APS investigator who conducted 
the investigation is responsible for providing consultation and testimony at the 
grievance hearing. 
(i) The head of the facility provides the APS director with a copy of hearings 
officers' decisions of employee grievances that involve TDPRS investigations. 

sec.417.513.Contractors.
The head of the facility is responsible for ensuring that all of the facility's 
contractors comply with this subchapter with the exception of sec.417.512 of 
this title (relating to Classifications and Disciplinary Actions) and 
sec.417.514 of this title (relating to TDMHMR Administrative Responsibilities). 
Each contract shall describe the procedural responsibilities of the facility and 
the contractor regarding at least the following: 
(1) the reporting of allegations of abuse, neglect, and exploitation;
(2) the safety and protection of persons served involved in allegations; 
(3) the facilitation of proper investigations/peer reviews and the preservation 
of the integrity of investigations/peer reviews; 
(4) the notification of appropriate organizations and persons of issues relating 
to an allegation; 
(5) the ensuring a mechanism exists for taking proper disciplinary action or 
other appropriate action; and 
(6) staff training in identifying, reporting, and preventing abuse, neglect, and 
exploitation. 

sec.417.514.TDMHMR Administrative Responsibilities.
(a) Data collection. 
(1) TDMHMR will use TDPRS Child Abuse and Adult Protective Services System 
(CAPS) to record the data necessary to report and analyze information, including 
individual incidents, multiple incidents, group incidents, unfounded 
allegations, and pending cases when CAPS becomes available to TDMHMR. TDMHMR 
will use CANRS to record data until CAPS becomes available. 
(2) TDMHMR and TDPRS will create a quarterly and annual report, which includes:
(A) number of investigations completed by classification sorted by program type; 
(B) number of confirmed investigations completed by classification sorted by 
program type; 
(C) number of completed investigations by disposition; 
(D) percent of completed investigations by disposition; 
(E) number of completed investigations involving serious physical injuries 
sorted by program type; 
(F) confirmation rate; 
(G) average number of days to complete the investigations sorted by program 
type; 
(H) total number of investigations that required an extension by TDPRS sorted by 
program type; 
(I) number of cases reported to law enforcement; 
(J) number of pending investigations at the end of the report period; and 
(K) disciplinary actions resulting from confirmed findings.
(3) TDPRS will download CAPS information on facility investigations to TDMHMR 
who will add at least the following information:
(A) employee/agent disciplinary actions (added at the facility level); 
(B) employee grievance dispositions (added by the Office of Consumer Services 
and Rights Protection); and 
(C) employee/agent identification (added at the facility level).
(b) Coordination of oversight responsibilities. TDMHMR makes available to TDPRS 
on an ongoing basis a list of: 
(1) all programs operated by and under contract with facilities; and 
(2) all private providers funded by Medicaid to provide home and community-based 
services (HCS) and home and community-based services-OBRA (HCS-O). 
(c) TDMHMR implements systems to ensure that former employees who were dismissed 
because of confirmed abuse or neglect and whose dismissal is upheld at a 
grievance hearing or who fail to request a grievance hearing and former 
employees with confirmed Class I abuse are not eligible for reemployment at any 
facility. 

sec.417.515.Staff Training in Identifying, Reporting, and Preventing Abuse, 
Neglect, and Exploitation.
(a) This subchapter shall be thoroughly and periodically explained to all 
employees/agents of each facility as follows: 
(1) All new employees/agents who will provide direct services to persons served 
and all new employees/agents who will routinely perform job duties in proximity 
to persons served shall receive training on the contents of this subchapter 
prior to performing their duties and annually thereafter. The training will 
include: 
(A) an explanation and examples of the acts and signs of possible abuse, 
neglect, and exploitation; 
(B) the effects of abuse, neglect, and exploitation; 
(C) an explanation that abuse, neglect, and exploitation of persons served is 
prohibited; 
(D) the disciplinary consequences for: 
(i) committing abuse, neglect, and exploitation; and 
(ii) failure to cooperate with an investigation; 
(E) the procedures for reporting allegations of abuse, neglect, and 
exploitation; 
(F) a definition of retaliatory action, an explanation that retaliatory action 
is prohibited, and an explanation of the consequences of retaliatory action; 
(G) practices and attitudes that support the prevention of abuse, neglect, and 
exploitation; and 
(H) the Prevention and Management of Aggressive Behavior, the department's 
proprietary risk management program. 
(2) All new employees/agents who will not provide direct services to persons 
served and who will not routinely perform any job duty in proximity to persons 
served shall receive training on the contents of this subchapter within two 
months of employment or placement and every two years thereafter. The training 
will include: 
(A) an explanation and examples of the acts and signs of possible abuse, 
neglect, and exploitation; 
(B) the effects of abuse, neglect, and exploitation; 
(C) an explanation that abuse, neglect, and exploitation of persons served is 
prohibited; 
(D) the disciplinary consequences for: 
(i) committing abuse, neglect, and exploitation; and 
(ii) failure to cooperate with an investigation; 
(E) the procedures for reporting allegations of abuse, neglect, and 
exploitation; and 
(F) a definition of retaliatory action, an explanation that retaliatory action 
is prohibited, and an explanation of the consequences of retaliatory action. 
(3) Physicians shall receive additional training on how to identify signs and 
symptoms of abuse, neglect, and exploitation.
(4) All new employees who will provide direct services to persons served shall 
receive training on the procedures for securing evidence in accordance with 
"Guidelines for Securing Evidence," referenced as Exhibit C in sec.417.516 of 
this title (relating to Exhibits) prior to performing their duties and annually 
thereafter. 
(5) Within 90 days after the effective date of this subchapter, the head of the 
facility shall inform all current employees/agents/contractors of changes to 
policies and procedures as a result of this subchapter. 
(b) All supervisory personnel have a continuing responsibility to keep 
employees/agents informed of current rules and policies governing abuse, 
neglect, and exploitation and to ensure that employees/agents receive training 
in accordance with this section. 
(c) Instructional materials, audiovisual, and/or other training aids concerning 
this subchapter are developed and available through the Human Resource 
Development, Central Office. 
(d) Records of all training content and activities related to course titles 
shall be kept by each facility. Records shall also be kept on each 
employee/agent receiving training in compliance with this section, which 
include: 
(1) the employee/agent's name and signature; 
(2) the course title; 
(3) the result of any assessment; 
(4) the date of the training; and 
(5) the name of the person facilitating, monitoring, or conducting the training. 

sec.417.516.Exhibits.
The following exhibits referenced in this subchapter are available from the 
Texas Department of Mental Health and Mental Retardation, Office of Policy 
Development, P.O. Box 12668, Austin, TX 78711- 2668. 
(1) Exhibit A - "Sexual assault" as defined the Texas Penal Code, sec.22.011; 
(2) Exhibit B - Adult Protective Services Referral Form;
(3) Exhibit C - "Guidelines for Securing Evidence"; 
(4) Exhibit D - Client Injury/Incident Report form (PORS 5/16R); 
(5) Exhibit E - "Guidelines for Separation of Alleged Victim and Alleged 
Perpetrator During Abuse/Neglect Investigations"; 
(6) Exhibit F - Request by Head of Facility/SOCS/Center for Review of Finding 
form; 
(7) Exhibit G - Client Abuse and Neglect Report (AN-1-A) form; and 
(8) Exhibit H - "Procedures in Facility Abuse and Neglect Investigations and 
type-name="italic">Thurston Rebuttal Proceedings."

sec.417.517.References.
Reference is made to the following statutes and rules and operating instructions 
of the department: 
(1) Texas Family Code, sec.261.001; 
(2) Section 1, Chapter 635, Acts of the 72nd Legislature, Regular Session, 1991 
(Article 4512o, Texas Civil Statutes); 
(3) Section 2, Licensed Professional Counselor Act (Article 4512g, Texas Civil 
Statutes); 
(4) Section 2, Licensed Marriage and Family Therapist Act (Article 4512c-1, 
Texas Civil Statutes); 
(5) Section 1.03, Medical Practice Act (Article 4495b, Texas Civil Statutes); 
(6) Section 2, Psychologists' Certification and Licensing Act (Article 4512c, 
Texas Civil Statutes); 
(7) Whistleblower Act, Texas Civil Statutes, Article 6252-16a;
(8) Texas Penal Code, sec.sec.22.011 and 43.01; 
(9) Chapter 403, Subchapter K of this title (relating to Client- Identifying 
Information); 
(10) Chapter 404, Subchapter E of this title (relating to Rights of Persons 
Receiving Mental Health Services); 
(11) Chapter 404, Subchapter G of this title (relating to Unusual Incidents 
Involving Persons Served by TXMHMR Facilities); 
(12) Chapter 405, Subchapter F of this title (relating to Voluntary and 
Involuntary Behavioral Interventions in Mental Health Programs;
(13) Chapter 405, Subchapter H of this title (relating to Behavior Management - 
Facilities Serving Persons With Mental Retardation);
(14) Chapter 405, Subchapter Y of this title (relating to Client Rights - Mental 
Retardation Services); 
(15) Chapter 710, Subchapter A, Title 40 (relating to Abuse, Neglect, and 
Exploitation of Persons Served by TDMHMR Facilities).
(16) TDMHMR Human Resources Operating Instruction: 
(A) sec.3.112 (relating to Separations, Suspensions, and Demotions); and 
(B) sec.3.116 (relating to Employee Grievances); 
(17) Investigative Medical Peer Review Operating Instruction, 408 - 2; 
(18) Investigative Nursing Peer Review Operating Instruction, 408 - 1; 
(19) Civil Practice and Remedies Code, sec.81.006; and 
(20) 42 USC sec.10806 or sec.6042(I). 

sec.417.518.Distribution.
(a) This subchapter will be distributed to: 
(1) members of the Texas Mental Health and Mental Retardation Board; 
(2) members of the Board of the Texas Department of Protective and Regulatory 
Services; 
(3) Central Office executive, management, and program staff; 
(4) the head of each facility; 
(5) advocacy organizations; 
(6) the Texas Board of Medical Examiners; 
(7) the Texas Board of Dental Examiners; 
(8) the Texas Board of Nurse Examiners; and 
(9) the Texas Board of Licensed Vocational Nurse Examiners.
(b) The head of each facility is responsible for duplicating and disseminating 
copies of this subchapter to: 
(1) appropriate staff; 
(2) contractors and agents; and 
(3) any person served, employee, or other individual desiring a copy. 
(c) The head of each facility is responsible for prominently displaying copies 
of this subchapter at nursing stations and on bulletin boards within each 
facility. 
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 27, 1998.
TRD-9802939
Charles Cooper
Chairman
Texas Department of Mental Health and Mental Retardation
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 206-4516

TITLE 28. INSURANCE
PART I. Texas Department of Insurance
CHAPTER 5. Property and Casualty Insurance
SUBCHAPTER E. Texas <nl>Windstorm<ol> [Catastrophe Property] Insurance 
Association
Division 2. Reinsurance
28 TAC sec.5.4016
The Texas Department of Insurance proposes new sec.5.4016, concerning the 
issuance of windstorm and hail insurance policies written through the Texas 
Windstorm Insurance Association (Association) that include coverage for an 
amount in excess of the maximum limit of liability approved by the Commissioner. 
Created in 1971 by the Texas Legislature as the Texas Catastrophe Property 
Insurance Association, the Association is composed of all insurers authorized to 
transact property insurance in Texas and operates pursuant to Article 21.49 of 
the Insurance Code. The Texas Legislature in H.B. 1632 (Acts 1997, 75th 
Legislature, chapter 438, sec.1, eff. September 1, 1997) changed the name of the 
Texas Catastrophe Property Insurance Association to the Texas Windstorm 
Insurance Association. The purpose of the Association is to provide windstorm 
and hail insurance coverage to residents in designated catastrophe areas who are 
unable to obtain such coverage in the voluntary market. Since its inception, the 
Association has provided this coverage to residents of 14 coastal counties: 
Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, 
Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy. The Association 
also provides coverage to certain designated catastrophe areas in Harris County: 
(i) since March 1, 1996, the area located east of a boundary line of State 
Highway 146 and inside the city limits of the City of Seabrook and the area 
located east of the boundary line of State Highway 146 and inside the city 
limits of the City of La Porte (Commissioner's Order No. 95-1200, November 14, 
1995); (ii) since June 1, 1996, the City of Morgan's Point (Commissioner's Order 
No. 96-0380, April 5, 1996); and (iii) since April 1, 1997, the areas located 
east of State Highway 146 and inside the city limits of the City of Shoreacres 
and the City of Pasadena (Commissioner's Order No. 97-0225, March 11, 1997). The 
legislature in 1997 passed H.B. 1853 which enacted a new sec.8E in Article 21.49 
of the Insurance Code (Acts 1997, 75th Leg., ch. 642, sec.4, eff. Sept. 1, 
1997). New sec.8E authorizes the Association to issue a policy of windstorm and 
hail insurance that includes coverage for an amount in excess of the maximum 
limit of liability approved by the Commissioner pursuant to Article 21.49, 
sec.8D of the Insurance Code. This will enable Association policyholders who 
need limits of liability in excess of the maximum limits of liability currently 
available through the Association to purchase additional windstorm and hail 
insurance coverage from the Association up to the amount of reinsured excess 
coverage available to the individual risk under the reinsured excess coverage 
program. Currently, this additional coverage is only available through the non-
regulated surplus lines market at generally higher costs.
Under Article 21.49, sec.8E(a), the Association must obtain such reinsured 
excess coverage from a reinsurer approved by the Commissioner. Article 21.49, 
sec.8E(b) provides that the premium charged by the Association for the excess 
coverage shall be equal to the amount of the reinsurance premium charged to the 
Association by the reinsurer, plus any payment to the Association that is 
approved by the Commissioner. Article 21.49, sec.8E(c) provides that the 
Commissioner shall adopt rules as necessary to implement new sec.8E and that the 
Association may not issue excess coverage until such rules are adopted. The 
proposed new section is necessary to provide these rules. Proposed subsection 
(a) specifies the purpose of the new section. Proposed subsection (b) defines 
terms used in the proposed new section. Proposed subsection (c) addresses the 
administration of the reinsured excess coverage program, including the 
requirement that the Association distribute the available reinsurance capacity 
in a fair and reasonable manner to risks qualifying under the Association's 
reinsured excess coverage program and that the Association annually review the 
reinsured excess coverage program and the rules in the proposed new section and 
provide an annual review summary to the Commissioner. Subsection (d) proposes 
procedures for approval of the reinsurer by the Commissioner. Under these 
procedures, the Association would be required to submit a petition to the 
Commissioner requesting approval of the reinsurer before any excess per risk 
reinsurance contract or renewal of such contract could become effective. The 
proposed subsection provides that, after notice and hearing, the Commissioner 
shall issue an order approving or disapproving the proposed reinsurer, and that 
this order shall be issued no later than December 31 of each year preceding the 
calendar year in which the reinsured excess coverage program is operated except 
for the first year the program is operated when the order shall be issued 
following the adoption of the proposed new section. Proposed subsection (d) 
further provides that the excess per risk reinsurance contract may not become 
effective until the Commissioner has issued an order approving the reinsurer. 
Proposed subsection (d)(4) specifies procedures for approval of the reinsurer in 
the event the existing excess per risk reinsurance contract is amended during 
the term of the contract. Proposed subsection (e) sets forth provisions 
applicable to issuance of coverage, including excess liability limits, policy 
provisions, and types of risks that may be eligible for the reinsured excess 
coverage. Subsection (f) proposes procedures for premium computation and display 
of premium on the declarations page of the policy. Proposed subsection (g) 
specifies procedures for proposal of the payment to the Association that is 
required to be approved by the Commissioner pursuant to Article 21.49, sec.8E(b) 
before it can be included in the premium charge for the excess coverage. Under 
proposed subsection (g)(1), the payment to the Association that may be proposed 
by the Association for approval by the Commissioner may include the amount of 
the direct and indirect costs identified by the Association to administer the 
reinsured excess coverage program and may include costs for claims, 
underwriting, accounting, technical and administrative support, computer 
equipment, agent commissions, taxes, and any other administrative costs approved 
by the Commissioner. Proposed subsection (g)(2) provides that the Commissioner, 
after notice and hearing, shall issue an order approving or disapproving the 
proposed payment to the Association. 
The department will consider the adoption of the new sec.5.4016 in a public 
hearing Under Docket No. 2345, scheduled for 9:00 a.m. on April 16, 1998, in 
Room 102 of the William P. Hobby State Office Building, 333 Guadalupe Street in 
Austin, Texas. 
Lyndon Anderson, associate commissioner of the property and casualty division, 
has determined that for each year of the first five years that the proposed new 
section will be in effect, there will be no fiscal implications to state or 
local government as a result of enforcing or administering the new section and 
that there will be no effect on local employment or the local economy as a 
result of enforcing or administering the new section. 
Mr. Anderson also has determined that for each year of the first five years the 
proposed new section will be in effect, the public benefit anticipated as a 
result of administering the section will be the availability of higher limits of 
liability under a single policy issued through the Association. Currently, 
insureds must obtain coverage for limits in excess of the maximum limit approved 
by the Commissioner through the non-regulated excess and surplus lines market, 
where costs are generally higher, or forego the purchase of excess limits 
because of unavailability or high costs. Additionally, the public benefit to 
insureds of a single policy to provide both coverage up to the maximum limit 
approved by the Commissioner and coverage in excess of the maximum limit is 
uniformity in coverage and conditions rather than two separate policies 
containing potentially inconsistent coverages and conditions. No person or 
entity is required by law or this proposed section to comply with this new 
section upon adoption. Article 21.49, sec.8E as enacted does not require the 
Association to offer reinsured excess coverage; the statute provides that the 
Association may offer this coverage upon the adoption of rules to implement 
sec.8E. Concomitantly, the purchase of the reinsured excess coverage is purely 
optional for Association policyholders and, therefore, there is no mandated 
economic cost to Association policyholders as a result of the adoption of the 
proposed new section. Those policyholders, however, who opt to purchase the 
reinsured excess coverage will generally pay lower costs for the coverage than 
would be paid for the coverage in the non-regulated market. Because the 
implementation of the reinsured excess coverage program pursuant to Article 
21.49, sec.8E of the Insurance Code is also optional for the Association, there 
is also no mandated economic cost to the Association as a result of the adoption 
of this proposed new section. If the Association, however, opts to provide 
reinsured excess coverage to Association policyholders, the costs to the 
Association to provide the reinsured excess coverage and to administer the 
reinsured excess coverage program in compliance with the proposed new section 
will be recouped from policyholders through premium payments as provided by 
Article 21.49, sec.8E and proposed subsections (f) and (g) of this proposed 
section. In addition, there is no adverse impact on small businesses. As noted 
above, no entity is required to comply with the proposed rule. Further, the 
primary users of the new program will likely be individual homeowners. In the 
event that commercial coverage become available under the program, the impact is 
expected to be positive, in that coverage costs may be reduced over those 
currently available. 
Comments on the proposal must be submitted within 30 days after publication of 
the proposal in the Texas Register to the Office of the Chief Clerk, Texas 
Department of Insurance, P. O. Box 149104, MC #113-2A, Austin, Texas 78714-9104. 
An additional copy of the comment is to be submitted to Lyndon Anderson, 
Associate Commissioner, Property and Casualty Division, Texas Department of 
Insurance, P. O. Box 149104, MC #103-1A, Austin, Texas 78714-9104. Article 
21.49, sec.5A of the Insurance Code requires a hearing to be held before any 
orders may be issued pursuant to Article 21.49 and provides that any person may 
appear and testify for or against the adoption of this proposal. 
This section is proposed pursuant to the Insurance Code, Articles 21.49 and 
1.03A, and in accordance with the Government Code sec.sec.2001.004-2001.038. 
Pursuant to Article 21.49, sec.8E of the Insurance Code (Acts 1997, 75th Leg., 
ch. 642, sec.4, eff. Sept. 1, 1997), the Association may issue a policy of 
windstorm and hail insurance that includes coverage for an amount in excess of 
the maximum limit of liability approved by the Commissioner pursuant to Article 
21.49, sec.8D of the Insurance Code. Article 21.49, sec.8E(c) provides that the 
Commissioner shall adopt rules as necessary to implement new sec.8E and that the 
Association may not issue excess coverage until those rules are adopted. Article 
21.49, sec.8 and sec.5A authorize the Commissioner to promulgate policy forms 
for use by the Texas Windstorm Insurance Association. Article 1.03A authorizes 
the Commissioner of Insurance to adopt rules and regulations, which must be for 
general and uniform application, for the conduct and execution of the duties and 
functions of the Texas Department of Insurance only as authorized by a statute. 
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 agency. 
The following statute is affected by this proposal: Insurance Code, Article 
21.49 

sec.5.4016. Per Risk Reinsured Excess Coverage.
(a) Purpose. Pursuant to Article 21.49, sec.8E of the Insurance Code, the Texas 
Windstorm Insurance Association may issue a policy of windstorm and hail 
insurance that includes coverage for an amount in excess of the maximum limit of 
liability approved by the Commissioner pursuant to Article 21.49, sec.8D of the 
Insurance Code. The purpose of this section is to provide rules necessary to 
implement Article 21.49, sec.8E as authorized by Article 21.49, sec.8E(c) of the 
Insurance Code. 
(b) Definitions. The following words and terms when used in this section shall 
have the following meanings unless the context clearly indicates otherwise. 
(1) Article 21.49, sec.8E-- Section 8E of Article 21.49 of the Insurance Code as 
added by Acts 1997, 75th Leg., ch. 642, sec.4, eff. Sept. 1, 1997. 
(2) Association-- Texas Windstorm Insurance Association.
(3) Available reinsurance capacity-- Amount of reinsurance purchased by the 
Texas Windstorm Insurance Association pursuant to the excess per risk 
reinsurance contract to provide reinsured excess coverage to Association 
policyholders as provided in Article 21.49, sec.8E. 
(4) Commissioner-- Texas Commissioner of Insurance. 
(5) Excess per risk reinsurance contract-- An agreement entered into by the 
Texas Windstorm Insurance Association with an approved reinsurer to provide 
coverage to Association policyholders for an amount in excess of the liability 
limits approved by the Commissioner pursuant to Article 21.49, sec.8D of the 
Insurance Code. 
(6) Reinsured excess coverage-- Coverage provided under a windstorm and hail 
insurance policy issued by the Texas Windstorm Insurance Association through a 
reinsurance agreement with an approved reinsurer for amounts of insurance that 
are in excess of the maximum limits of liability available to the individual 
risk from the Texas Windstorm Insurance Association.
(7) Reinsured excess coverage program--The program operated by the Texas 
Windstorm Insurance Association to provide reinsured excess coverage in 
accordance with Article 21.49, sec.8E, the excess per risk reinsurance contract 
or contracts entered into between the Association and the Commissioner-approved 
reinsurer or reinsurers, this section, and any orders issued pursuant to this 
section or to Article 21.49, sec.8E; this includes the collection of premium, 
issuance of coverage under the windstorm and hail insurance policy, and the 
processing and payment of claims for the reinsured excess coverage. 
(c) Administration. 
(1) The Association shall administer the reinsured excess coverage program on 
behalf of each policyholder of a windstorm and hail insurance policy to which 
reinsurance is provided by an approved reinsurer. 
(2) The Association shall distribute the available reinsurance capacity for the 
reinsured excess coverage in a fair and reasonable manner to risks qualifying 
under the Association's reinsured excess coverage program.
(3) The Association shall annually review the reinsured excess coverage program, 
including the rates, reinsurers, excess per risk reinsurance contracts, use of 
available reinsurance capacity, the Association's costs to administer the 
reinsured excess coverage program, and the rules in this section, and shall 
provide an annual summary of such review to the Commissioner.
(d) Approval of Reinsurer. Pursuant to Article 21.49, sec.8E, before the 
Association may provide reinsurance coverage on an individual risk that is in 
excess of the maximum limits of liability approved by the Commissioner pursuant 
to Article 21.49, sec.8D, Insurance Code, the Association must first obtain from 
a reinsurer approved by the Commissioner reinsurance for the full amount of 
policy exposure above the limits approved by the Commissioner for any given type 
of risk. The approval of the reinsurer shall be in accordance with paragraphs 
(1) - (4) of this subsection. 
(1) The Association shall submit a petition to the Commissioner requesting 
approval of the reinsurer before any excess per risk reinsurance contract or 
renewal of such contract becomes effective. The petition shall include the name 
of the proposed reinsurer or reinsurers; the reinsurance proposal; the draft 
excess per risk reinsurance contract; information on the financial health of the 
proposed reinsurer or reinsurers and any other information related to the 
reasons for the Association's selection of reinsurer or reinsurers; estimated 
costs for the reinsurance; the proposed cost to the Association to administer 
the reinsured excess coverage program; estimated total premium for the 
reinsurance; the method of making the reinsurance capacity available to 
policyholders; and any other information the Association or the Commissioner 
deems necessary to enable the Commissioner to determine whether to approve or 
disapprove the proposed reinsurer or reinsurers. 
(2) Pursuant to Article 21.49, sec.5A of the Insurance Code, the Commissioner, 
after notice and hearing, shall issue an order approving or disapproving the 
proposed reinsurer. The order shall be issued no later than December 31 of each 
year preceding the calendar year in which the reinsured excess coverage program 
is operated except for the first year the program is operated when the order 
shall be issued following the adoption of this section. 
(3) An excess per risk reinsurance contract may not become effective until the 
Commissioner has issued an order approving the reinsurer. The excess per risk 
reinsurance contract does not require approval by the Commissioner. 
(4) The Association shall submit written notice of any amendments to any 
existing excess per risk reinsurance contract to the Commissioner at least 30 
days prior to the effective date of the proposed amendments. The notice shall 
include an explanation of the reason for the amendments and a copy of the draft 
amendments. The reinsurer under the amended contract shall be deemed approved by 
the Commissioner unless within 30 days following the submission of the written 
notice the Commissioner enters an order disapproving the reinsurer. Amendments 
to the contract do not require approval by the Commissioner.
(e) Coverage. Pursuant to Article 21.49, sec.8E, the Association may issue a 
policy of windstorm and hail insurance that includes coverage that is in excess 
of a liability limit approved by the Commissioner pursuant to Article 21.49, 
sec.8D, Insurance Code. Any such policy shall be issued in accordance with 
paragraphs (1) - (3) of this subsection. 
(1) Excess liability limits. The amount of reinsurance excess coverage available 
to an individual risk shall be determined in accordance with the reinsured 
excess coverage program. 
(2) Policy provisions. 
(A) The total limit of liability shall be the limit of liability insured by the 
Association and the amount of reinsured excess coverage provided on the 
individual risk under the reinsured excess coverage program. 
(B) All terms and conditions of the windstorm and hail insurance policy issued 
by the Association shall apply to the reinsured excess coverage provided under 
the windstorm and hail insurance policy. 
(C) The amount of reinsured excess coverage must be shown separately on the 
declarations page of the policy. 
(3) Types of risks. 
(A) The Association may provide reinsured excess coverage for dwelling 
structures only, commercial structures only, or for both dwelling structures and 
commercial structures. 
(B) Reinsured excess coverage may be provided on either buildings or contents, 
or on building and contents. If reinsured excess coverage is provided on 
building and contents, building structures must be insured for 100% replacement 
cost, up to the total maximum limit of liability available for the risk and the 
available reinsured excess coverage amount provided under the reinsured excess 
coverage program before reinsured excess coverage may be applied to contents. 
(f) Premium. 
(1) Premium computation. The total premium charged by the Association for the 
reinsured excess coverage provided on a windstorm and hail insurance policy 
issued by the Association shall be the total of: 
(A) the amount of the excess per risk reinsurance premium charged to the 
Association by the reinsurer for the reinsured excess coverage provided on any 
given risk, and 
(B) the payment to the Association that is approved by the Commissioner pursuant 
to Article 21.49, sec.8E(b) and as provided in subsection (g) of this section. 
(2) Display of premium. The total premium charged by the Association for the 
reinsured excess coverage provided in a windstorm and hail insurance policy 
issued by the Association must be shown separately on the declarations page of 
the policy. 
(g) Payment to the Association. Pursuant to Article 21.49, sec.8E(b), the 
premium charged by the Association for the excess coverage shall be equal to the 
amount of the reinsurance premium charged to the Association by the reinsurer 
plus any payment to the Association that is approved by the Commissioner as 
provided in paragraphs (1) and (2) of this subsection. 
(1) The payment to the Association that may be proposed by the Association for 
approval by the Commissioner pursuant to Article 21.49, sec.8E(b) may include 
the amount of the direct and indirect costs identified by the Association to 
administer the reinsured excess coverage program and may include costs for 
claims, underwriting, accounting, technical and administrative support, computer 
equipment, agent commissions, taxes, and any other administrative costs approved 
by the Commissioner. 
(2) Pursuant to Article 21.49, sec.5A of the Insurance Code, the Commissioner, 
after notice and hearing, shall issue an order approving or disapproving the 
proposed payment to the Association. The Commissioner may take such action in 
the order issued pursuant to subsection (d)(2) of this section. 
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 27, 1998.
TRD-9802971
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-6327

CHAPTER 21. Trade Practices
SUBCHAPTER B. Insurance Advertising, Certain Trade Practices, and Solicitation
28 TAC sec.21.102, sec.21.114
The Texas Department of Insurance proposes clarifying and conforming amendments 
to sec.21.102 and sec.21.114, concerning rules pertaining specifically to life 
insurance advertising. The proposed amendments are necessary for clarification 
and conformity with provisions and requirements of Subchapter N, Chapter 21, 
this title, relating to life insurance illustrations, which is published 
elsewhere in this issue of the Texas Register as sec.sec.21.2201 -- 21.2214. The 
proposed amendment to sec.21.102 clarifies that in the term "advertisement" the 
descriptive item "illustration" is intended to include the software as well as 
hard copy components. The proposed amendment to sec.21.114 provides that if 
dividends are illustrated, the illustration must conform to the requirements of 
Subchapter N, Chapter 21, this title, relating to life insurance illustrations.
Audrey Selden, associate commissioner for the consumer protection division of 
the Texas Department of Insurance, has determined that for each year of the 
first five years the section is in effect, there will be no fiscal impact on 
state or local government as a result of enforcing or administering the section. 
Ms. Selden also has determined that there will be no effect on local employment 
or the local economy. 
Audrey Selden, associate commissioner for the consumer protection division of 
the Texas Department of Insurance, has determined that for each year of the 
first five years the section is in effect, the public benefit anticipated as a 
result of administration and enforcement of the amendments will be a more clear 
life insurance advertising rule which contains provisions for illustration of 
dividends that is consistent with the requirements for life illustrations 
generally set out in Subchapter N. The amendment therefore will enhance consumer 
protection and facilitate consumer education concerning illustrations, 
particularly dividend illustrations. There is no anticipated difference in cost 
of compliance between small and large businesses, or between business entities 
and natural persons resulting from the proposed amendments. There is no 
anticipated economic cost resulting from the proposed amendment to persons who 
are subject to the proposed amendments, because there is no compliance cost 
resulting from the clarification to the definition of "advertisement," and 
because any cost associated with the change in dividend illustration 
requirements is a cost already absorbed by an insurer in satisfying the 
requirements of the life insurance illustration provisions of Subchapter N. 
Comments on the proposal must be submitted in writing within 30 days after 
publication of the proposal in the Texas Register to Caroline Scott, General 
Counsel and Chief Clerk, P.O. Box 149104, MC 113-2A, Austin, Texas 78714-9104. 
An additional copy of comments should be submitted to William O. Goodman, 
Special Litigation Counsel, Enforcement Division, P.O. Box 149104, MC #110-1A, 
Austin, Texas 78714-9104. A request for public hearing on the proposed sections 
should be submitted separately to the Office of the Chief Clerk.
The amendment is proposed pursuant to the Insurance Code, Article 21.21, sec.13. 
Article 21.21, sec.13, provides that the department is authorized to promulgate 
and enforce reasonable rules and regulations and order such provision as is 
necessary in the accomplishment of the purposes of Article 21.21, relating to 
unfair competition and unfair practices. 
The proposed new section affects regulation pursuant to the following statutes: 
Insurance Code, Article 21.21 

sec.21.102. Scope. 
For the purpose of these sections: 
(1) "Advertisement" includes but is not limited to: 
(A) (No change.) 
(B) descriptive literature and sales aids of all kinds issued by an insurer or 
agent for presentation to members of the public, including circulars, letters, 
booklets, depictions, illustrations <nl>and the software supporting the 
same<ol>, and form letters; and 
(D)-(G) (No change.) 
(2)-(6) (No change.) 

sec.21.114. Rules Pertaining Specifically to Life Insurance Advertising. 
As can be made applicable and as necessary the same or similar test or standard 
as is stated hereafter within paragraph (3)(B) of this section is to be used as 
the standard in the interpretation of the provisions of this section. 
(1)-(5) (No change.) 
(6) Dividends. 
(A) (No change.) 
(B) An advertisement may not state or imply that the payment or amount of 
dividends is guaranteed. If dividends are illustrated, [the dividends must be 
based on the insurer's current dividend scale and the illustration must contain 
a statement to the effect that the dividends or amount of dividends illustrated 
are not to be construed as guarantees or estimates of dividends to be paid in 
the future] <nl>the illustration must conform to the requirements of Subchapter 
N of this chapter (relating to Life Insurance Illustrations)<ol>. 
(C)-(D) (No change.) 
(7)-(9) (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 25, 1998.
TRD-9802827
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-6327

SUBCHAPTER N. Life Insurance Illustrations
28 TAC sec.sec.21.2201-21.2214
The Department of Insurance proposes new Subchapter N, concerning the 
preparation and use of illustrations or ledger sheets in the sale of life 
insurance. Typically an illustration is a marketing device which projects 
current and non-guaranteed values over a period of years. Proposed 
sec.sec.21.2201 -- 21.2214 are based upon and incorporate nearly all of the Life 
Insurance Illustration Model Regulation adopted by the National Association of 
Insurance Commissioners on December 6, 1995. The new sections are necessary to 
protect prospective insureds and insurers from the mounting deception, abuse and 
unfair trade practices that have accompanied the recent proliferation of 
illustrations in the life insurance marketplace. 
Through the use of an actuarial test known as the "Disciplined Current Scale," 
the proposed new sections will restrict the projection of non-guaranteed 
elements to those which are based on actual, recent and verifiable experience. 
The DSC is intended to minimize or eliminate the frequent manipulation of 
assumptions underlying the projection of non-guaranteed values. 
The proposed sections also require specific illustration formats and disclosures 
in connection with the use of illustrations, including the assumptions 
underlying the projections. 
Proposed sec.21.2201 sets out the purpose of the subchapter. Proposed 
sec.21.2202 states the statutory authority upon which the proposed sections are 
based. Proposed sec.21.2203 sets out the applicability and scope of the 
subchapter. Proposed sec.21.2204 contains definitions of essential terms used in 
the proposed sections. Proposed sec.21.2205 sets out provisions for commissioner 
notification and circumstances requiring delivery of illustrations or quotations 
to policy owners. Proposed sec.21.2206 sets out general rules and prohibitions, 
including disclosure, format, prohibitions, and limitation concerning use of 
non-guaranteed interest rate increases for non-guarantee elements of a life 
insurance policy. Proposed sec.21.2207 addresses standards. Proposed sec.21.2208 
contains standards for supplemental illustrations. Proposed sec.21.2209 provides 
for the delivery of the illustration and for certain records to be obtained and 
retained by insurers. Proposed sec.21.2210 provides for an annual report and 
certain notice concerning illustrations to be delivered to policy owners. 
Proposed sec.21.2211 provides for annual certification to be made by an 
insurer's illustration actuary. Proposed sec.21.2212 provides for penalties for 
violation of the sections. Proposed sec.21.2213 contains a separability clause. 
Proposed sec.21.2214 provides for an effective date. 
Rose Ann Reeser, associate commissioner for regulation and safety at the Texas 
Department of Insurance, has determined that for the first five-year period the 
proposed rule is in effect there will be no fiscal impact to the state or local 
units of government as a result of enforcing or administering the section. Ms. 
Reeser also has determined there will be no other implications for the local 
economy and no impact on local employment as a result of administering the 
proposed new sections. 
Ms. Reeser also has determined that for each year of the first five years the 
proposed rule is in effect the public benefit anticipated as a result of 
enforcing and administering the proposed new sections will be a significant 
reduction in the level of deceptive and unfair trade practices currently 
associated with the use of illustrations in the sale of life insurance. Such a 
reduction will mutually benefit consumers and those insurers whose current use 
of illustrations is free of deception. Further, compliance with the proposed 
rule should reduce the exposure an insurer might otherwise incur from a 
deceptive trade practices or Article 21.21 action. 
Ms. Reeser also has determined that for the first year the proposed rule is in 
effect, the cost to each insurer complying with the rule will depend on whether 
an insurer chooses to market any policy forms with an illustration. If an 
insurer chooses not to market any of its policy forms with an illustration, its 
compliance costs would be limited to notifying the Department by letter of this 
fact. The cost of such notice is estimated to be $10 annually. 
For insurers who choose to market one or more policy forms with an illustration, 
the costs of compliance will depend upon the following factors: 
The number of policy forms chosen to be illustrated; 
The complexity of the policy forms chosen to be illustrated; 
Whether the policy forms will be marketed in other states which have adopted the 
NAIC Life Insurance Illustrations Model Regulation or variants thereof (i.e., 
compliance costs for an insurer marketing a policy form designated to be 
illustrated in other states should be proportionately reduced); and Whether 
illustrations will be prepared contemporaneously with the marketing of a 
particular policy or prepared prior or subsequent to a sales call. Insurers who 
choose to illustrate will incur compliance costs in the following areas: 
Actuarial testing for the Disciplined Current Scale; 
Software development costs for implementing formatting and disclosure 
requirements; Annual Certifications; 
Annual Policyholder Statements; and 
In-force Illustrations. 
Because of the number and complexity of the above described variables, the costs 
to each insurer complying with the rule will vary from a maximum of $380,285 to 
a low of $10. The costs in the second through fifth years for insurers who 
choose to illustrate should decrease significantly from the first-year costs of 
compliance, since there are no anticipated significant software development 
costs for those years. Annual costs are estimated to range from a maximum of 
$49,585 to a low of $10. 
These estimates were derived from a survey of eight insurers of various sizes 
who indicated that they planned to illustrate one or more policies in Texas. 
Insurers were asked to estimate their total nationwide start up costs to 
implement the Life Illustration Model. Compliance costs were broken down by the 
following categories: actuarial testing, software development, annual 
certification, annual policyholder statements and in-force illustrations. The 
sum of these costs was then multiplied by either the percent of premiums 
generated in Texas or the percent of life illustrations presented in Texas in 
order to determine costs of compliance for Texas. Costs relating to the Texas 
proposed modifications, if any, were then added to the Texas percentage of Model 
implementation costs to generate the total cost of compliance for the proposed 
rule. Start up costs for the eight companies were as high as $380,280, and were 
as low as $76,400. Average start up costs were $163,833 and the median start up 
cost amounted to $135,600. Insurers were also polled regarding annual compliance 
costs. The results produced a low of $14,580 and a high of $49,585 producing an 
average annual cost of $20,526 and a median of $16,260. 
Ms. Reeser has further determined that the proposed rule will not have an 
adverse economic effect on small businesses because those insurance companies 
that would qualify as "small" within the meaning of TEX. GOV'T CODE sec.2006.002 
do not issue life insurance policies which would be subject to the proposed 
rule. 
A computerized search of the 1996 ANNUAL STATEMENTS revealed that of 854 life 
insurance companies authorized to do business in Texas, 123 had 1995 gross 
receipts of $1 million or less. Gross receipts were computed by totaling lines 1 
through 6 of the Cash Flow Exhibit to the ANNUAL STATEMENT which reflects 
receipts from: 'premium and annuity consideration,' 'deposit type funds' 
'supplemental contracts with life contingencies,' 'supplemental contracts 
without life contingencies,' 'coupons left to accumulate' and 'net investment 
income.' 
To determine whether any of these 123 companies sold life products or sold life 
products which would subject them to the application of the rule, a screen was 
done on Exhibit 8, Interrogatory No. 3 of the ANNUAL STATEMENTS which asks: 
"Does the company at present issue or have in force policies that contain non-
guaranteed elements?" The rule does not apply unless non-guaranteed elements or 
values are illustrated. 121 companies responded negatively, i.e. they either 
currently are not selling life insurance or the life insurance they are 
marketing does not contain any non-guaranteed elements. 
The two remaining companies, Insurance Investors Life Insurance Co. and American 
Travelers Assurance Co., do sell life products with non-guaranteed values, but 
are part of a larger holding company and therefore do not qualify as "small" 
within the meaning of the statute. 
Comments on the proposal may be submitted to the Chief Clerk, Texas Department 
of Insurance, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104, 
Mail Code 113-2A, within 30 days following the date of this publication. An 
additional copy of comments should be submitted to William O. Goodman, Special 
Litigation Counsel, Enforcement Division, P.O. Box 149104, MC #110-1A, Austin, 
Texas 78714-9104. A request for a public hearing on the proposed rule should be 
submitted separately to the Office of the Chief Clerk. 
The new sections are proposed pursuant to the Insurance Code, Article 21.21, 
sec.13. and article 1.03A article 21.21, sec.13 authorizes the commissioner to 
promulgate reasonable rules and regulations as are necessary to accomplish the 
purposes of Article 21.21 in the regulation of trade practices in the business 
of insurance by defining, or providing for the determination of, all practices 
in this state which constitute unfair methods of competition or unfair or 
deceptive acts or practices. 
The proposed new sections affect regulation pursuant to the following statutes: 
Insurance Code, Article 21.21. 

sec.21.2201. Purpose. 
The purpose of this regulation is to provide rules for life insurance policy 
illustrations that will protect consumers and foster consumer education. The 
regulation provides illustration formats, prescribes standards to be followed 
when illustrations are used, and specifies the disclosures that are required in 
connection with illustrations. The goals of this regulation are to ensure that 
illustrations do not mislead purchasers of life insurance and to make 
illustrations more understandable. Insurers will, as far as possible, eliminate 
the use of footnotes and caveats and define terms used in the illustration in 
language that would be understood by a typical person within the segment of the 
public to which the illustration is directed. 

sec.21.2202. Authority. 
This regulation is issued based upon the authority granted the commissioner 
under the Insurance Code, Article 21.21 sec.13 and article 1.03A 

sec.21.2203. Applicability and Scope.
This regulation applies to all group and individual life insurance policies and 
certificates except: 
(1) variable life insurance; 
(2) individual and group annuity contracts; 
(3) credit life insurance; or 
(4) life insurance policies with no illustrated death benefits on any individual 
exceeding $10,000. 

sec.21.2204. Definitions. 
For the purposes of this regulation, the terms in this section shall have the 
meanings placed opposite them unless the explicit wording of a regulation shall 
otherwise direct. 
(1) Actuarial Standards Board -- the board established by the American Academy 
of Actuaries to develop and promulgate standards of actuarial practice. 
(2) Contract premium -- the gross premium that is required to be paid under a 
fixed premium policy, including the premium for a rider for which benefits are 
shown in the illustration. 
(3) Currently payable scale -- a scale of non-guaranteed elements in effect for 
a policy form as of the illustration date or declared to become effective within 
95 days of the illustration date. 
(4) Disciplined current scale -- a scale of non-guaranteed elements constituting 
a limit on illustrations currently being illustrated by an insurer that is 
reasonably based on actual recent historical experience, as certified annually 
by an illustration actuary designated by the insurer. Further guidance in 
determining the disciplined current scale as contained in standards established 
by the Actuarial Standards Board may be relied upon if the standards: 
(A) are consistent with all provisions of this regulation;
(B) limit a disciplined current scale to reflect only actions that have already 
been taken or events that have already occurred; 
(C) do not permit a disciplined current scale to include any projected trends of 
improvements in experience or any assumed improvements in experience beyond the 
illustration date; and 
(D) do not permit assumed expenses to be less than minimum assumed expenses. 
(5) Generic name -- a short title descriptive of the policy being illustrated 
such as "whole life," "term life" or "flexible premium adjustable life." 
(6) Guaranteed elements -- the premiums, benefits, values, credits or charges 
under a policy of life insurance that are guaranteed and determined at issue. 
(7) Illustrated scale -- a scale of non-guaranteed elements currently being 
illustrated that is not more favorable to the policy owner than the lesser of: 
(A) the disciplined current scale; or 
(B) the currently payable scale. 
(8) Illustration -- a presentation or depiction that includes non-guaranteed 
elements of a policy of life insurance over a period of years and includes but 
is not limited to the three types defined in subparagraphs (A) - (C) of this 
paragraph. 
(A) Basic illustration -- an illustration that shows both guaranteed and non-
guaranteed elements. 
(B) Supplemental illustration -- an illustration furnished in addition to a 
basic illustration that meets the applicable requirements of this regulation, 
and that may be presented in a format differing from the basic illustration, but 
may only depict a scale of non-guaranteed elements that is permitted in a basic 
illustration. 
(C) In-force illustration -- an illustration furnished at any time after the 
policy that it depicts has been in force for one year or more. 
(9) Illustration actuary -- an actuary meeting the requirements of 
sec.21.2211(c) who certifies to illustrations based on the standard of practice 
promulgated by the Actuarial Standards Board. 
(10) Illustration date -- the date on which the illustration was prepared. 
(11) Insurer -- a life insurance company as defined by the Insurance Code, 
Article 3.01 sec.(1); a fraternal benefit society as defined by the Insurance 
Code, Article 10.01 sec.(a) and sec.(b); a Mutual Life Insurance Company as 
defined by the Insurance Code, Article 11.01; or a Stipulated Premium Insurance 
Company as defined by the Insurance Code, Article 22.01. 
(12) Lapse-supported illustration -- an illustration of a policy form failing 
the test of self-supporting as defined in this regulation, under a modified 
persistency rate assumption using persistency rates underlying the disciplined 
current scale for the first five years and 100% policy persistency thereafter. 
(13) Minimum assumed expenses -- the minimum expenses that may be used in the 
calculation of the disciplined current scale for a policy form. The insurer may 
choose to designate each year the method of determining assumed expenses for all 
policy forms from: 
(A) fully allocated expenses; 
(B) marginal expenses; and 
(C) a generally recognized expense table based on fully allocated expenses 
representing a significant portion of insurance companies and approved by the 
National Association of Insurance Commissioners or by the commissioner. Marginal 
expenses may be used only if greater than a generally recognized expense table. 
If no generally recognized expense table is approved, fully allocated expenses 
must be used. 
(14) Non-guaranteed elements -- the premiums, benefits, values, credits or 
charges under a policy of life insurance that are not guaranteed or not 
determined at issue. 
(15) Non-term group life -- a group policy or individual policies of life 
insurance issued to members of an employer group or other permitted group where: 
(A) every plan of coverage was selected by the employer or other group 
representative; 
(B) some portion of the premium is paid by the group or through payroll 
deduction; and 
(C) group underwriting or simplified underwriting is used.
(16) Participating life insurance policy -- a life insurance policy which 
provides for possible policyholder dividends. 
(17) Policy owner -- the owner named in the policy or the certificate holder in 
the case of a group policy. 
(18) Premium outlay -- the amount of premium assumed to be paid by the policy 
owner or other premium payer out-of-pocket. 
(19) Self-supporting illustration -- an illustration of a policy form for which 
it can be demonstrated that, when using experience assumptions underlying the 
disciplined current scale, for all illustrated points in time on or after the 
fifteenth policy anniversary or the twentieth policy anniversary for second-or-
later-to-die policies (or upon policy expiration if sooner), the accumulated 
value of all policy cash flows equals or exceeds the total policy owner value 
available. For this purpose, policy owner value will include cash surrender 
values and any other illustrated benefit amounts available at the policy owner's 
election. 
(20) Universal life insurance policy -- a life insurance policy under the 
provisions of which separately identified interest credits (other than in 
connection with dividend accumulations, premium deposit funds, or other separate 
accounts) and mortality and expense charges are made to the policy. A universal 
life policy may provide for other credits and charges, such as charges for the 
cost of benefits provided by rider. 

sec.21.2205. Policies to Be Illustrated.
(a) Commissioner notification. Each insurer marketing policies to which this 
regulation is applicable shall notify the commissioner whether a policy form is 
to be marketed with or without an illustration. For all policy forms being 
actively marketed on the effective date of this regulation, the insurer shall 
identify in writing those forms and whether or not an illustration will be used 
with them. For policy forms filed after the effective date of this regulation, 
the identification shall be made at the time of filing. Any previous 
identification may be changed by notice to the commissioner. 
(b) Prohibition. If the insurer identifies a policy form as one to be marketed 
without an illustration, any use of an illustration for any policy using that 
form prior to the first policy anniversary is prohibited.
(c) When delivery of illustration is required. If a policy form is identified by 
the insurer as one to be marketed with an illustration, a basic illustration 
prepared and delivered in accordance with this regulation is required, except 
that a basic illustration need not be provided to individual members of a group 
or to individuals insured under multiple lives coverage issued to a single 
applicant unless the coverage is marketed to these individuals. The illustration 
furnished an applicant for a group life insurance policy or policies issued to a 
single applicant on multiple lives may be either an individual or composite 
illustration representative of the coverage on the lives of members of the group 
or the multiple lives covered. 
(d) When delivery of quotation is required. Potential enrollees of non-term 
group life subject to this regulation shall be furnished a quotation with the 
enrollment materials. The quotation shall show potential policy values for 
sample ages and policy years on a guaranteed and non-guaranteed basis 
appropriate to the group and the coverage. This quotation shall not be 
considered an illustration for purposes of this regulation, but all information 
provided shall be consistent with the illustrated scale. A basic illustration 
shall be provided at delivery of the certificate to enrollees for non-term group 
life who enroll for more than the minimum premium necessary to provide pure 
death benefit protection. In addition, the insurer shall make a basic 
illustration available to any non-term group life enrollee who requests it. 

sec.21.2206. General Rules and Prohibitions.
An illustration used in the sale of a life insurance policy shall conform to the 
requirements set out in paragraphs (1) - (3) of this section. 
(1) Disclosure and format. An illustration used in the sale of a life insurance 
policy shall satisfy the applicable requirements of this regulation, be clearly 
labeled "life insurance illustration" and contain the basic information set out 
in subparagraphs (A) - (W) of this paragraph, as follows: 
(A) name of insurer; 
(B) name and business address of producer or insurer's authorized 
representative, if any; 
(C) name, age and sex of proposed insured, except where a composite illustration 
is permitted under this regulation; 
(D) underwriting or rating classification upon which the illustration is based; 
(E) generic name of policy, the company product name, if different, and form 
number; 
(F) initial death benefit; 
(G) dividend option election or application of non-guaranteed elements, if 
applicable; and 
(H) illustration date. 
(I) The illustration shall be prominently labeled "Life Insurance Illustration." 
(J) Each page, including any explanatory notes or pages, shall be numbered and 
show its relationship to the total number of pages in the illustration (e.g., 
the fourth page of a seven-page illustration shall be labeled "page 4 of 7 
pages"). If a supplemental illustration is used, it may be numbered either 
sequentially with or separately from the basic illustration.
(K) The assumed dates of payment receipt and benefit pay-out within a policy 
year shall be clearly identified. 
(L) If the age of the proposed insured is shown as a component of the tabular 
detail, it shall be issue age plus the numbers of years the policy is assumed to 
have been in force. 
(M) The assumed payments on which the illustrated benefits and values are based 
shall be identified as premium outlay or contract premium, as applicable. For 
policies that do not require a specific contract premium, the illustrated 
payments shall be identified as premium outlay. 
(N) Guaranteed death benefits and values available upon surrender, if any, for 
the illustrated premium outlay or contract premium shall be shown and clearly 
labeled guaranteed. 
(O) If the illustration shows any non-guaranteed elements, they cannot be based 
on a scale more favorable to the policy owner than the insurer's illustrated 
scale at any duration. These elements shall be clearly labeled non-guaranteed. 
(P) The guaranteed elements, if any, shall be shown before corresponding non-
guaranteed elements and shall be specifically referred to on any page of an 
illustration that shows or describes only the non-guaranteed elements (e.g., 
"see page one for guaranteed elements"). 
(Q) The account or accumulation value of a policy, if shown, shall be identified 
by the name this value is given in the policy being illustrated and shown in 
close proximity to the corresponding value available upon surrender.
(R) The value available upon surrender shall be identified by the name this 
value is given in the policy being illustrated and shall be the amount available 
to the policy owner in a lump sum after deduction of surrender charges, policy 
loans and policy loan interest, as applicable.
(S) Illustrations may show policy benefits and values in graphic or chart form 
in addition to the tabular form. 
(T) A disclaimer shall be set out conspicuously and in close conjunction to any 
depiction of non-guaranteed elements over a period of years and shall: 
(i) identify those benefits and values which are not guaranteed;
(ii) identify the assumptions upon which the non-guaranteed values are based; 
(iii) state that the assumptions are not likely to continue unchanged for the 
years shown and that the assumptions are subject to change by the insurer; 
(iv) state that actual results may be more or less favorable; and 
(v) identify the factors which will affect future policy performance, including 
death claims, investment earnings and overhead costs or makes reference to the 
narrative which identifies these factors. 
(U) If the illustration shows that the premium payer may have the option to 
allow policy charges to be paid using non-guaranteed values, the illustration 
must clearly disclose that a charge continues to be required and that, depending 
on actual results, the premium payer may need to continue or resume premium 
outlays. Similar disclosure shall be made for premium outlay of lesser amounts 
or shorter durations than the contract premium. If a contract premium is due, 
the premium outlay display shall not be left blank or show zero unless 
accompanied by an asterisk or similar mark to draw attention to the fact that 
the policy is not paid up. 
(V) If the applicant plans to use dividends or policy values, guaranteed or non-
guaranteed, to pay all or a portion of the contract premium or policy charges, 
or for any other purpose, the illustration may reflect those plans and the 
impact on future policy benefits and values. 
(W) If policy loans are illustrated on a guaranteed basis, interest charged must 
be calculated at the highest numerical rate permitted under the terms of the 
contract. 
(2) Prohibited conduct. When using an illustration in the sale of a life 
insurance policy, an insurer or its producers or other authorized 
representatives or agents shall not: 
(A) represent the policy as anything other than a life insurance policy; 
(B) use or describe non-guaranteed elements in a manner that is misleading or 
has the capacity or tendency to mislead; 
(C) state or imply that the payment or amount of non-guaranteed elements is 
guaranteed; 
(D) use an illustration that does not comply with the requirements of this 
regulation; 
(E) use an illustration that at any policy duration depicts policy performance 
more favorable to the policy owner than that produced by the illustrated scale 
of the insurer whose policy is being illustrated; 
(F) provide an applicant with an incomplete illustration;
(G) use a particular illustration if there has been a change in the current 
payable scale or the proposed insured's age since the illustration date; 
(H) represent in any way that premium payments will not be required for each 
year of the policy in order to maintain the illustrated death benefits, unless 
that is the fact; 
(I) use the term "vanish" or "vanishing premium," or a similar term that implies 
the policy becomes paid up, to describe a plan for using non-guaranteed elements 
to pay a portion of future premiums; 
(J) except for policies that can never develop nonforfeiture values, use an 
illustration that is "lapse-supported;" 
(K) use an illustration that is not "self-supporting;" 
(L) use an illustration or the software supporting it unless the illustration 
and the supporting software have been approved by the insurer in accordance with 
sec.21.122 of this title (relating to System of Control and Home Office Approval 
of Advertising Material Naming an Insurer); or 
(M) use an illustration on a policy not identified by the insurer as one to be 
marketed with an illustration. 
(3) Interest rate for non-guaranteed elements. The interest rate used to 
determine the illustrated non-guaranteed elements shall not be greater than the 
lesser of the earned interest rate underlying the disciplined current scale or 
the interest rate for the currently payable scale. A non-guaranteed interest 
rate used in calculating non-guaranteed values shall not increase from one 
policy year to a subsequent policy year unless the contract provides for a 
corresponding increase in the guaranteed interest rate. 

sec.21.2207. Standards for Basic Illustrations. 
In addition to those matters set out in sec.21.2206 of this title (relating to 
General Rules and Prohibitions), a basic illustration shall conform to the 
following requirements: 
(1) Narrative summary. A basic illustration shall begin with a narrative summary 
which shall include: 
(A) a brief description of the policy being illustrated, including a statement 
that it is a life insurance policy; 
(B) a brief description of the premium outlay or contract premium, as 
applicable, for the policy. For a policy that does not require payment of a 
specific contract premium, the illustration shall show the premium outlay that 
must be paid to guarantee coverage for the term of the contract, subject to 
maximum premiums allowable to qualify as a life insurance policy under the 
applicable provisions of the Internal Revenue Code; 
(C) a brief description of any policy features, riders or options, guaranteed or 
non-guaranteed, shown in the basic illustration and the impact they may have on 
the benefits and values of the policy; 
(D) identification and a brief definition of column headings and key terms used 
in the illustration; and 
(E) A statement which: 
(i) identifies those benefits and values which are not guaranteed;
(ii) identifies the assumptions upon which the non-guaranteed values are based; 
(iii) states that the assumptions are not likely to continue unchanged for the 
years shown and that the assumptions are subject to change by the insurer; 
(iv) states that actual results may be more or less favorable; and 
(v) identifies the factors which will affect future policy performance, 
including death claims, investment earnings and overhead costs.
(2) Numeric summary. Following the narrative summary, a basic illustration shall 
include a numeric summary of the death benefits and values and the premium 
outlay and contract premium, as applicable.
(A) For a policy that provides for a contract premium, the guaranteed death 
benefits and values shall be based on the contract premium. This summary shall 
be shown for at least policy years five, 10 and 20 and at age 70, if applicable. 
For multiple life policies the summary shall show policy years five, 10, 20 and 
30. The summaries required in this subparagraph shall be presented on the three 
bases set out in clauses (i) - (iii) of this subparagraph, as follows: 
(i) policy guarantees; 
(ii) insurer's illustrated scale; and 
(iii) insurer's illustrated scale used but with the non-guaranteed elements 
reduced as set out in subclauses (I) - (III) as follow: 
(I) dividends at 50% of the dividends contained in the illustrated scale used; 
(II) non-guaranteed credited interest at rates that are the average of the 
guaranteed rates and the rates contained in the illustrated scale used; and 
(III) all non-guaranteed charges, including but not limited to, term insurance 
charges, mortality and expense charges, at rates that are the average of the 
guaranteed rates and the rates contained in the illustrated scale used. 
(B) In addition, if coverage would cease prior to policy maturity or age 100, 
the year in which coverage ceases shall be identified for each of the three 
bases set out in subparagraph (A) of this paragraph. 
(3) Tabular detail. Life insurance policy illustrations shall include, as 
applicable, the tabular detail set out in subparagraphs (A) - (C) of this 
paragraph.
(A) A basic illustration shall include the following for at least each policy 
year from one to 10 and for every fifth policy year thereafter ending at age 
100, policy maturity or final expiration; and except for term insurance beyond 
the 20th year, for any year in which the premium outlay and contract premium, if 
applicable, is to change: 
(i) The premium outlay and mode the applicant plans to pay and the contract 
premium, as applicable; 
(ii) The corresponding guaranteed death benefit, as provided in the policy; and
(iii) The corresponding guaranteed value available upon surrender, as provided 
in the policy. 
(B) For a policy that provides for a contract premium, the guaranteed death 
benefit and value available upon surrender shall correspond to the contract 
premium. 
(C) Non-guaranteed elements may be shown if described in the contract. In the 
case of an illustration for a policy on which the insurer intends to credit 
terminal dividends, they may be shown if the insurer's current practice is to 
pay terminal dividends. If any non-guaranteed elements are shown they must be 
shown at the same durations as the corresponding guaranteed elements, if any. If 
no guaranteed benefit or value is available at any duration for which a non-
guaranteed benefit or value is shown, a zero shall be displayed in the 
guaranteed column. 

sec.21.2208. Standards for Supplemental Illustrations. 
A supplemental illustration may be provided so long as it meets all standards 
set out in paragraphs (1) - (4) of this section, as follows: 
(1) it is appended to, accompanied by or preceded by a basic illustration that 
complies with this regulation; 
(2) the non-guaranteed elements shown are not more favorable to the policy owner 
than the corresponding elements based on the scale used in the basic 
illustration; 
(3) it conforms to sec.21.2206 of this title (relating to General Rules and 
Prohibitions); and 
(4) for a policy that has a contract premium, the contract premium underlying 
the supplemental illustration is equal to the contract premium shown in the 
basic illustration. For policies that do not require a contract premium, the 
premium outlay underlying the supplemental illustration shall be equal to the 
premium outlay shown in the basic illustration. 

sec.21.2209. Delivery of Illustration and Record Retention. 
(a) Illustration delivery provisions. An illustration or revised illustration 
shall be delivered by the insurer as set out in paragraphs (1) - (4) of this 
subsection. 
(1) Basic illustration delivery. If a basic illustration is used by an insurance 
producer or other authorized representative of the insurer in the sale of a life 
insurance policy and the policy is applied for as illustrated, a copy of that 
illustration shall be submitted to the insurer at the time of policy 
application. A copy also shall be provided to the applicant. 
(2) Revised illustration delivery. If the policy is issued other than as applied 
for, a revised basic illustration conforming to the policy as issued shall be 
sent with the policy. The revised illustration shall conform to the requirements 
of this regulation, shall be labeled "Revised Illustration." A copy shall be 
provided to the insurer and the policy owner.
(3) Certification required where no illustration is used. If no illustration is 
used by an insurance producer or other authorized representative in the sale of 
a life insurance policy or if the policy is applied for other than as 
illustrated, the producer or representative shall certify to that effect in 
writing on a form provided by the insurer. On the same form the applicant shall 
acknowledge that no illustration conforming to the policy applied for was 
provided and shall further acknowledge an understanding that an illustration 
conforming to the policy as issued will be provided no later than at the time of 
policy delivery. This form shall be submitted to the insurer at the time of 
policy application. 
(4) Illustration to be provided with policy. If the policy is issued, a basic 
illustration conforming to the policy as issued shall be sent with the policy. A 
copy shall be provided to the insurer and the policy owner. 
(b) Records retention. A copy of the basic illustration and a revised basic 
illustration, if any, along with any certification that either no illustration 
was used or that the policy was applied for other than as illustrated, shall be 
retained by the insurer until three years after the policy is no longer in 
force. A copy need not be retained if no policy is issued. 

sec.21.2210. Annual Report; Notice to Policy Owners. 
(a) Annual report provision. If an illustration is used in the sale of a life 
insurance policy after the effective date of this regulation, the insurer shall 
provide each policy owner with an annual report on the status of the policy that 
shall contain, at a minimum, the applicable information set out in paragraphs 
(1) - (3) of this subsection. 
(1) Universal life policies. For universal life policies, the report shall 
include: 
(A) the beginning and end date of the current report period;
(B) the policy value at the end of the previous report period and at the end of 
the current report period; 
(C) the total amounts that have been credited or debited to the policy value 
during the current report period, identifying each by type (e.g., interest, 
mortality, expense and riders); 
(D) the current death benefit at the end of the current report period on each 
life covered by the policy; 
(E) the net cash surrender value of the policy as of the end of the current 
report period; 
(F) the amount of outstanding loans, if any, as of the end of the current report 
period; and 
(G) for fixed premium policies, if, assuming guaranteed interest, mortality and 
expense loads and continued scheduled premium payments, the policy's net cash 
surrender value is such that it would not maintain insurance in force until the 
end of the next reporting period, a notice to this effect shall be included in 
the report; or 
(H) for flexible premium policies, if, assuming guaranteed interest, mortality 
and expense loads, the policy's net cash surrender value will not maintain 
insurance in force until the end of the next reporting period unless further 
premium payments are made, a notice to this effect shall be included in the 
report. 
(2) Other life insurance policies. For all other policies, the report shall 
include, as applicable: 
(A) current death benefit; 
(B) annual contract premium; 
(C) current cash surrender value; 
(D) current dividend; 
(E) application of current dividend; and 
(F) amount of outstanding loan. 
(3) Life insurance policies without nonforfeiture values. For life insurance 
policies that do not build nonforfeiture values, insurers shall only be required 
to provide an annual report with respect to these policies for those years when 
a change has been made to non-guaranteed policy elements by the insurer. 
(b) Required policy owner notice. If the annual report does not include an in-
force illustration, it shall contain the following notice displayed prominently: 
"IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailed 
information about your policy to understand how it may perform in the future. 
You should not consider replacement of your policy or make changes in your 
coverage without requesting a current illustration. You may annually request, 
without charge, such an illustration by calling (insurer's phone number), 
writing to (insurer's name) at (insurer's address) or contacting your agent. If 
you do not receive a current illustration of your policy within 30 days from 
your request, you should contact your state insurance department." The insurer 
may vary the sequential order of the methods for obtaining an in-force 
illustration. 
(c) In-force illustration to be provided at policy owner request. Upon the 
request of the policy owner, the insurer shall furnish an in-force illustration 
of current and future benefits and values based on the insurer's present 
illustrated scale. This illustration shall comply with the requirements of 
sec.21.2206(1) and (2)(A) - (K) of this title (relating to General Rules and 
Prohibitions); and sec.21.2207(3) of this title (relating to Standards for Basic 
Illustrations). No signature or other acknowledgment of receipt of this 
illustration shall be required. 
(d) Notice of change to non-guaranteed elements. If an adverse change in non-
guaranteed elements that could affect the policy has been made by the insurer 
since the last annual report, the annual report shall contain a notice of that 
fact and the nature of the change prominently displayed.

sec.21.2211. Annual Certification.
(a) Insurer to appoint illustration actuary. The board of directors of each 
insurer shall appoint one or more illustration actuaries.
(b) Actuary certification. The illustration actuary shall certify that the 
disciplined current scale used in illustrations is in conformity with the 
Actuarial Standard of Practice for Compliance with the NAIC Model Regulation on 
Life Insurance Illustrations promulgated by the Actuarial Standards Board, and 
that the illustrated scales used in insurer-authorized illustrations meet the 
requirements of this regulation. 
(c) Illustration actuary qualifications and disclosures. The illustration 
actuary shall: 
(1) be a member in good standing of the American Academy of Actuaries; 
(2) be familiar with the standard of practice regarding life insurance policy 
illustrations; 
(3) not have been found by the commissioner, following appropriate notice and 
hearing to have: 
(A) violated any provision of, or any obligation imposed by, the insurance law 
or other law in the course of his or her dealings as an illustration actuary; 
(B) been found guilty of fraudulent or dishonest practices;
(C) demonstrated his or her incompetence, lack of cooperation, or 
untrustworthiness to act as an illustration actuary; or 
(D) resigned or been removed as an illustration actuary within the past five 
years as a result of acts or omissions indicated in any adverse report on 
examination or as a result of a failure to adhere to generally acceptable 
actuarial standards; 
(4) not fail to notify the commissioner of any action taken by a commissioner of 
another state similar to that under paragraph (3) of this subsection; 
(5) disclose in the annual certification whether, since the last certification, 
a currently payable scale applicable for business issued within the previous 
five years and within the scope of the certification has been reduced for 
reasons other than changes in the experience factors underlying the disciplined 
current scale. If non-guaranteed elements illustrated for new policies are not 
consistent with those illustrated for similar in-force policies, this must be 
disclosed in the annual certification. If non-guaranteed elements illustrated 
for both new and in-force policies are not consistent with the non-guaranteed 
elements actually being paid, charged or credited to the same or similar forms, 
this must be disclosed in the annual certification; and 
(6) disclose in the annual certification the method used to allocate overhead 
expenses for all illustrations: 
(A) fully allocated expenses; 
(B) marginal expenses; or 
(C) a generally recognized expense table based on fully allocated expenses 
representing a significant portion of insurance companies and approved by the 
National Association of Insurance Commissioners or by the commissioner.
(d) Certification filing requirements. The illustration actuary shall file a 
certification with the commissioner prior to use of any illustration for a new 
policy form, and annually for all current policy forms for which illustrations 
are used. 
(e) Notice of error. If an error in a previous certification is discovered, the 
illustration actuary shall notify the board of directors of the insurer and the 
commissioner promptly. 
(f) Notice of inability to certify. If an illustration actuary is unable to 
certify the scale for any policy form illustration the insurer intends to use, 
the actuary shall notify the board of directors of the insurer and the 
commissioner promptly of his or her inability to certify. 
(g) Annual certification. A responsible officer of the insurer, other than the 
illustration actuary, shall certify annually: 
(1) that the illustration formats meet the requirements of this regulation and 
that the scales used in insurer-authorized illustrations are those scales 
certified by the illustration actuary; and 
(2) that the company has provided its agents with information about the expense 
allocation method used by the company in its illustrations and disclosed as 
required in subsection (c)(6) of this section. 
(h) Due date of certifications. The annual certifications shall be provided to 
the commissioner each year by a date determined by the insurer. 
(i) Notice of change in illustration actuary. If an insurer changes the 
illustration actuary responsible for all or a portion of the company's policy 
forms, the insurer shall notify the commissioner of that fact promptly and 
disclose the reason for the change. 

sec.21.2212. Penalties.
Any violation of this subsection shall constitute a misrepresentation of the 
terms of an issued and unissued policy in violation of the Insurance Code, 
Article 21.21 sec.4(1) and (2), and to be a misrepresentation of the terms, 
benefits, and advantages of a policy within the meaning of the Insurance Code, 
Article 21.20. Violations of this subsection shall subject the insurer and agent 
to the penalties provided in the Insurance Code, Article 21.21 and other 
applicable provisions of the Insurance Code. 

sec.21.2213. Separability, Conflict with and Effect on Other Regulations. 
(a) Separability. If any provision of this regulation or its application to any 
person or circumstance is for any reason held to be invalid by any court of law, 
the remainder of the regulation and its application to other persons or 
circumstances shall not be affected. 
(b) Conflict with or effect on other rules. This subchapter is not intended to 
conflict with or supersede and is to be interpreted when possible as not to 
conflict with Subchapters A and B of this chapter (relating Unfair Competition 
and Unfair Practices of Insurers and Insurance Advertising).

sec.21.2214. Effective Date. 
These sections shall become effective September 1, 1998, and shall apply to all 
policies sold on or after that date. 
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 25, 1998.
TRD-9802828
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-6327

TITLE 31. NATURAL RESOURCES AND CONSERVATION
PART II. Texas Parks and Wildlife Department
CHAPTER 53. Finance
SUBCHAPTER A. License Fees and Boat and Motor Fees
31 TAC sec.sec.53.6-53.7
The Texas Parks and Wildlife Department proposes amendments to sec.53.6, 
concerning Commercial Fishing Licenses and Tags, and sec.53.7, concerning 
Business Licenses and Permits. Responsibility for establishing provisions 
enabling a commercial crab fishery license limitation program, including 
creation of a commercial crab fishing license, is delegated to the Parks and 
Wildlife Commission by passage of House Bill 2542 in the 75th Legislature. The 
proposed amendments establish license fees, license transfer fees, and duplicate 
license fees for resident and non-resident commercial crab fisherman's licenses. 
The commercial crab trap tag fee is being removed, as it will no longer be 
required. 
Robin Riechers, staff economist, has determined that for each of the first five 
years that the rules as proposed are in effect, there will be no additional 
fiscal implications to state or local governments as a result of enforcing or 
administering the rules. 
Mr. Riechers also has determined that for each of the first five years the rules 
as proposed are in effect the public benefit anticipated as a result of 
administering or enforcing the rules as proposed will be the development of a 
more efficient and economically stable crabbing industry, thus maximizing the 
social and economic benefits to the state. There will be no anticipated 
additional fiscal implications to state or local governments as a result of 
enforcing or administering the rules. 
There will be some effects on small businesses and individuals required to 
comply with the rules as proposed. These may be additional costs associated with 
the license fees, gear modifications, and other program aspects, but in the 
long-term both individual efficiency and profits should rise as stock abundance 
increases.
License Fees: The legislatively mandated fees for a newly established commercial 
crab fisherman's license will have positive economic impacts on crab fishers 
whose past annual license(s) and crab trap tag expenditures exceed the cost of 
the new license fee and will have negative impacts on those crab fishers whose 
past annual license(s) and crab trap tag expenditures did not exceed the cost of 
the new license fee. The distribution of these types of crab fishers is not 
known. 
Commercial Crab Fishing Gear Marking: There will be some minimal costs 
associated with individuals complying with the new gear marking requirements. 
However, since the marking requirements will enhance enforcement, thereby 
reducing the opportunity for theft of traps and crabs, there will be positive 
economic benefits due to a reduction in lost or stolen gear and crabs. 
Degradable Panel Options: There will be some small costs associated with 
individuals complying with the new degradable panel options. The new options 
should, however, minimize reported premature degradation of the panel using the 
twine option, thereby reducing premature loss of crabs from actively fishing 
traps.
The department has not filed a local impact statement with the Texas Employment 
Commission as required by the Administrative Procedures Act, Government Code, 
sec.2001.022, as the agency has determined that the rules as proposed will not 
impact local economies. 
Comments on the proposed rule may be submitted to Paul Hammerschmidt, Coastal 
Fisheries Division, Texas Parks and Wildlife Department, 4200 Smith School Road, 
Austin, Texas 778744; (512) 389-4650 or 1- 800-792-1112 extension 4650.
The amendments are proposed under Parks and Wildlife Code, Chapter 78, 
Subchapter B, which delegate to the Texas Parks and Wildlife Commission 
authority to establish provisions enabling a commercial crab fishery license 
limitation program, including creation of commercial crab fishing licenses.
The amendments affect Parks and Wildlife Code, Chapter 78, Subchapter B.

sec.53.6. Commercial Fishing Licenses and Tags. 
(a)-(c) (No change.) 
<nl>(d)<ol> <nl> Crabbing licenses. <ol>
<nl>(1)<ol> <nl> Licenses and permits. The following license fee amounts are 
effective for the license year beginning September 1, 1998, and thereafter: <ol>
<nl>(A)<ol> <nl> resident commercial crab fisherman's (type 338)--$500; and <ol>
<nl>(B)<ol> <nl> nonresident commercial crab fisherman's (type 438)--$2,000. 
<ol>
<nl>(2)<ol> <nl>License transfers. The following license transfer fee amounts 
are effective for the license year beginning September 1, 1998, and thereafter: 
<ol>
<nl>(A)<ol> <nl>resident commercial crab fisherman's (type 368)--$500; and <ol>
<nl>(B)<ol> <nl> nonresident commercial crab fisherman's (type 468)--$2,000. 
<ol>
<nl>(3)<ol> <nl> Duplicate license plates. The following duplicate license plate 
fee amounts are effective for the license year beginning September 1, 1998, and 
thereafter: <ol>
<nl>(A)<ol> <nl> resident commercial crab fisherman's (type 338)--$5; and <ol>
<nl>(B)<ol> <nl>nonresident commercial crab fisherman's (type 438)--$5.<ol>

sec.53.7.Business Licenses and Permits. 
Fish, bait, and shrimp licenses and tags. 
(1)-(2) (No change.) 
(3) <nl>The fee for the saltwater trotline tag (type 307) shall be $3.00. <ol> 
[Tags. The following tag fee amounts are effective for the license year] 
Beginning September 1, 1995, and thereafter]
[(A) saltwater trotline tag (type 307) $3.00; and] 
[(B) commercial crab trap tag (type 305)--$1.50].
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 25, 1998.
TRD-9802755
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4642

31 TAC sec.53.8
The Texas Parks and Wildlife Department proposes an amendment to sec.53.8, 
concerning fees schedules. The amendment to sec.53.8 is necessary to implement 
the fee for the newly created nonresident raptor trapping permit. The amendment 
will function to impose fees for nonresidents wishing to trap raptors in this 
state. 
Robert Macdonald, Wildlife Division regulations coordinator, has determined that 
for each of the first five years that the proposed amendment is in effect, there 
will be no fiscal implications to state or local governments as a result of 
enforcing or administering the proposed amendment. 
Mr. Macdonald also has determined that for each of the first five years the 
amendment as proposed is in effect, the public benefit anticipated as a result 
of enforcing the rule as proposed will be the increased opportunity for persons 
to benefit from the wildlife resources of the state. 
There will be no effect on small businesses. There are additional economic costs 
to persons required to comply with the rule as proposed; specifically, a $300 
fee for nonresidents to trap raptors in this state.
The department has not filed a local impact statement with the Texas Workforce 
Commission as required by Government Code, sec.2001.022, as this agency has 
determined that the rule as proposed will not impact local economies. The 
department has determined that there will not be a taking of private property, 
as defined by Government Code, Chapter 2007, as a result of the proposed rule. 
Comments on the proposed rule may be submitted to Robert Macdonald, Texas Parks 
and Wildlife Department, 4200 Smith School Road, Austin, Texas 78744; (512) 389-
4775 or 1-800-792-1112. 
The amendment is proposed under Parks and Wildlife Code, sec.49.014, which 
provides the commission with authority to establish a fee for the nonresident 
trapping permit. 
The amendment affects Parks and Wildlife Code, Chapters 49 and 31.

sec.53.8. Miscellaneous Wildlife Licenses and Permits.
(a)-(b) (No change.) 
(c) Falconry permits. The following permit fee amounts (fees also prescribed in 
Chapter 65 of this title) are effective for the license year beginning September 
1, 1996, and thereafter: 
(1)-(4) (No change.)
(5) nonresident <nl>raptor trapper's<ol>[5-day falconer's] (type 125) - 
<nl>$300<ol>[$20]. 
(d)-(e) (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 25, 1998.
TRD-9803015
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

SUBCHAPTER H.Marine Safety Enforcement-Training and Certification Fees
31 TAC sec.53.60
The Texas Parks and Wildlife Department proposes new sec.53.60, concerning fees 
schedules. New sec.53.60 is necessary to implement the fees to recover the 
administrative cost of training and certifying marine safety enforcement 
officers and marine safety enforcement officer course instructors. The new 
section will function to impose fees for peace officers seeking certification as 
marine safety enforcement officers or marine safety enforcement officer course 
instructors. 
Robert Macdonald, Wildlife Division regulations coordinator, has determined that 
for each of the first five years that the proposed new rule is in effect, there 
will be fiscal implications to state or local governments as a result of 
enforcing or administering the proposed new rule. A governmental entity seeking 
to have a peace officer trained and certified as a marine safety enforcement 
officer or marine safety enforcement officer course instructor will incur an 
enrollment cost of $25 per peace officer and a $3.00 per student per hour 
instruction charge. 
Mr. Macdonald also has determined that for each of the first five years the 
amendment and new rule as proposed are in effect, the public benefit anticipated 
as a result of enforcing the rules as proposed will be the ability of the 
department to deliver a program that enhances the safety of all persons who 
participate in water-related recreation in this state. 
There will be no effect on small businesses. There are additional economic costs 
to persons required to comply with the rules as proposed; specifically, a $25 
fee per peace officer enrolled for training and certification as a marine safety 
enforcement officer or marine safety enforcement course instructor, and $3.00 
per student per hour instruction charge. 
The department has not filed a local impact statement with the Texas Workforce 
Commission as required by Government Code, sec.2001.022, as this agency has 
determined that the rule as proposed will not impact local economies. The 
department has determined that there will not be a taking of private property, 
as defined by Government Code, Chapter 2007, as a result of the proposed rule. 
Comments on the proposed rules may be submitted to Carlos Vaca, Texas Parks and 
Wildlife Department, 4200 Smith School Road, Austin, Texas 78744; (512) 389-4624 
or 1-800-792-1112. 
The new section is proposed under the provisions of House Bill 966, Acts of the 
75th Texas Legislature, Regular Session, 1997, which amended Parks and Wildlife 
Code, sec.31.121 to authorize the commission to establish and collect a fee to 
recover the administrative costs associated with the certification of marine 
safety enforcement officers. 
The new section affect Parks and Wildlife Code, Chapter 31.

sec.53.60. Law Enforcement Training and Certification Fees.
In addition to the enrollment fees below, the department shall impose an 
instruction charge of $3.00 per student per hour. 
(1) The fee for certification as a marine safety enforcement officers is $25. 
(2) The fee for certification as a marine safety enforcement officer instructor 
is $25. 
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 March 2, 1998.
TRD-9803014
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

CHAPTER 55.Law Enforcement
SUBCHAPTER H.Marine Safety Enforcement-Training and Certification Standards
31 TAC sec.sec.55.801-55.807
The Texas Parks and Wildlife Department proposes new sec.sec.55.801-55.807, 
concerning training and certification of marine safety enforcement officers. The 
new sections are necessary in order to implement the provisions of House Bill 
966, enacted by the 75th Texas Legislature, which established mandatory boater 
education in this state. The new sections will function by establishing the 
certification criteria for persons to become marine safety officers and marine 
safety officer course instructors. 
Robert Macdonald, Wildlife Division regulations coordinator, has determined that 
for each of the first five years that the rules as proposed are in effect, there 
will be fiscal implications to state and local governments as a result of 
enforcing or administering the new sections. The proposed new sections would 
require a certification fee of $25 per peace officer, an instruction charge of 
$3.00 per student per hour, and provide for special course fee not to exceed 
$300 per course. The department cannot quantify costs to other governmental 
subdivisions, as such costs are dependent upon the number of peace officers a 
given governmental subdivision might enroll in the certification process. Mr. 
Macdonald also has determined that for each of the first five years the rules as 
proposed are in effect, the public benefit anticipated as a result of enforcing 
the rules as proposed will be the presence of trained peace officers on the 
public waters of the state to enforce boating safety laws, thus increasing the 
safety of water-related recreational activities as well as reducing injuries, 
deaths, and property losses resulting from unsafe and unlawful boat operation. 
There will be no effect on small businesses and no additional economic costs to 
persons required to comply with the rules as proposed. 
The department has not filed a local impact statement with the Texas Workforce 
Commission as required by Government Code, sec.2001.022, as this agency has 
determined that the rules as proposed will not impact local economies. The 
department has determined that there will not be a taking of private real 
property, as defined by Government Code, Chapter 2007, as a result of the 
proposed rules. 
Comments on the proposed rules may be submitted to Carlos Vaca, Director of 
Water Safety Enforcement, Law Enforcement Division, Texas Parks and Wildlife 
Department, 4200 Smith School Road, Austin, Texas 78744; (512) 389-4624 or 1-
800-792-1112. 
The new sections are proposed under Parks and Wildlife Code, sec.31.121, which 
gives the commission authority to adopt rules establishing standards for 
training and certifying marine safety enforcement officers, creating exemptions 
from training and certification requirements, and establishing fees to recover 
administrative costs associated with the certification process.

sec.55.801. Application. 
This subchapter shall apply to any peace officer, as defined by Article 2.12, 
Texas Code of Criminal Procedure, who enforces any provision of Parks and 
Wildlife Code, Chapter 31, or enforces any provision, regulation, resolution, 
ordinance, order adopted pursuant to Parks and Wildlife Code, sec.31.092.

sec.55.802. Definitions.
The following words and terms, when used in this subchapter, shall have the 
following meanings, except where the context clearly indicates otherwise.
(1) Active duty peace officer - A peace officer holding a valid peace officer 
license from the Texas Commission on Law Enforcement Officer Standards and 
Education (TCLEOSE) and a valid peace officer commission issued by an authorized 
governmental entity of the State of Texas. 
(2) Commission - The Texas Parks and Wildlife Commission
(3) Department - The Texas Parks and Wildlife Department

sec.55.803. General Rules.
(a) To be eligible for certification as a marine safety enforcement officer, a 
person must: 
(1) be an active duty peace officer; 
(2) hold a Texas boater education certificate; and 
(3) successfully complete the marine safety enforcement officer training course 
and marine safety enforcement officer examination.
(b) To retain certification, a marine safety enforcement officer must comply 
with all reporting requirements as set forth in sec.55.806 of this title 
(relating to Reporting Requirements). 
(c) To instruct the marine safety enforcement officer training course, a person 
must: 
(1) be a certified marine safety enforcement officer; 
(2) hold a TCLEOSE Instructor license; and 
(3) successfully complete the marine safety enforcement officer instructor 
course and marine safety enforcement officer instructor examination. 
(d) A person who is a graduate of the TPWD Game Warden Academy and who is also 
an active commissioned game warden is eligible for certification as a marine 
safety enforcement officer. A person who is a graduate of the TPWD Game Warden 
Academy, who is also an active commissioned game warden, and who holds a TCLEOSE 
Instructors License is eligible for certification as a marine safety enforcement 
officer course instructor.

sec.55.804. Marine Safety Enforcement Officer Course Standards. 
(a) The marine safety enforcement officer course shall consist of the following 
instruction topics: 
(1) provisions of the Texas Water Safety Act, Parks and Wildlife Code, Chapter 
31; 
(2) navigation rules; 
(3) United States Coast Guard rules applicable to state waters; 
(4) boater education requirements; and 
(5) the reporting requirements of sec.55.806 of this title (relating to 
Reporting Requirements). 
(b) The marine safety enforcement officer course is successfully completed when 
a peace officer has: 
(1) attended a minimum of eight hours of prescribed instruction by a department 
certified marine safety enforcement officer instructor; and
(2) passed the department approved marine safety enforcement officer 
examination. 
(c) Upon completion of a course, the instructor shall submit to the department a 
signed affidavit specifying for each student: 
(1) the date(s) of instruction; 
(2) the topics of instruction; 
(3) the hours of instruction in each topic; and 
(4) test score. 

sec.55.805. Marine Safety Enforcement Officer Instructor Course Standards. 
(a) The marine safety enforcement officer instructor course shall consist of the 
following instruction topics: 
(1) provisions of the Texas Water Safety Act, Parks and Wildlife Code, Chapter 
31; 
(2) navigation rules; 
(3) United States Coast Guard rules applicable to state waters; 
(4) boater education requirements; and 
(5) the reporting requirements of sec.55.806 of this title (relating to 
Reporting Requirements). 
(b) The marine safety enforcement officer instructor course is successfully 
completed when a marine safety enforcement officer has: 
(1) attended a minimum of 16 hours of instruction prescribed by the Game Warden 
Training Academy; and 
(2) successfully completed the marine safety enforcement officer instructor 
examination prescribed by the Game Warden Training Academy.
(c) Upon completion of an instructor certification course, the course instructor 
shall submit to the department a signed affidavit specifying for each student: 
(1) the date(s) of instruction; 
(2) the topics of instruction; 
(3) the hours of instruction in each topic; and 
(4) test score.

sec.55.806. Reporting Requirements.
(a) Marine safety enforcement officers shall report all investigations as 
required by Parks and Wildlife Code, sec.31.132, by completing and submitting to 
the department a Water Safety Incident Report(s). 
(b) The department may summarily suspend the certification of a marine safety 
enforcement officer who fails to submit, fails to complete, or falsifies a 
report required under subsection (a) of this section.

sec.55.807. Fees. 
All applications shall be accompanied by the fees specified in Chapter 53 of 
this title (relating to Finance). All payments shall be in the form of a check, 
money order, or warrant made payable to the department. All fees are 
nonrefundable; however, an entity may substitute a qualified peace officer in 
place of a person named on an application. 
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 25, 1998.
TRD-9803017
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

CHAPTER 57.Fisheries
SUBCHAPTER A.Harmful or Potentially Harmful Exotic Fish, Shellfish and Aquatic 
Plants
31 TAC sec.sec.57.111-57.114
The Texas Parks and Wildlife Department proposes amendments to sec.sec.57.111-
57.114, concerning harmful or potentially harmful exotic fish, shellfish and 
aquatic plants. Section 57.111 is amended to add definitions for the terms 
"certified inspector" and "manifestations of disease" and to clarify the 
definition of "disease free." 
Proposed amendments to sec.57.112 will make it an offense to harvest grass carp 
from public water for which a valid Triploid Grass Carp Permit is currently in 
effect. Amendments to sec.57.113 stipulate that individuals may possess exotic 
harmful or potentially harmful fish or shellfish, other than grass carp, if the 
intestines have been removed and further propose amendment that stipulates grass 
carp may be harvested from public waters that have not been permitted for 
triploid grass carp, if the intestines have been removed. Further proposed 
amendment of sec.57.113 would delete Anguilla japonicus from the list of harmful 
or potentially harmful exotic fish that may be possessed, propagated, 
transported or sold with a permit and would exempt from the prohibition any 
person who, as of the effective date of these rules, holds a valid permit 
authorizing the above activities. 
Proposed amendment of sec.57.114 would allow permit holders who must institute 
quarantine conditions as a result of observing manifestations of disease to 
choose between requesting an inspection from a "certified inspector" or 
submitting samples of shellfish to a laboratory for disease analysis. The 
amended section also allows permit holders who wish to discharge waste into or 
adjacent to water in the state to make the same choice between inspection by a 
"certified inspector" and laboratory testing prior to commencing any discharge. 
The intent of sec.57.114(f) is that inspection of exotic fish for disease shall 
occur prior to discharge of any water which has been in contact with the exotic 
shellfish at anytime. Thus, even if water is not discharged directly into or 
adjacent to water in the state; for example, if it is routed from growout 
structures through ditches, retention ponds or other structures prior to 
discharge, the animals which occupied that water must still be tested. Robin 
Riechers, staff economist, has determined that during the first five years these 
sections as proposed are in effect there will be fiscal implications to state 
government as a result of administering and enforcing the sections. However, the 
extent of this effect is not determinable at this time. There will be no fiscal 
implications for units of local government. 
Mr. Riechers also has determined that for the first five years these sections as 
proposed are in effect the public benefit anticipated as a result of enforcement 
of and compliance with the sections will be increased protection of aquatic 
animal life from depletion due to disease. Entities, such as river authorities, 
water districts, private property owners, etc., which bear the cost of aquatic 
vegetation control may experience financial savings as a result of grass carp 
used versus other, more expensive forms of vegetation control. Additional costs 
may be incurred by entities or individuals who must comply with these rules. The 
Parks and Wildlife Department has determined that the prohibition in sec.57.113 
of the proposed rules will not have any adverse impact on small businesses since 
it includes an exemption from the rules for any businesses currently operating. 
Additionally, the testing requirements imposed by sec.57.114 will not have an 
adverse impact on small business since in most cases the decision whether or not 
to submit laboratory samples is up to the permit holder. In the case of a 
probable disease outbreak where the rule requires laboratory testing, the cost 
of the testing will be negligible in most cases. It is not possible to 
accurately determine whether the quarantine provisions of sec.57.114 as proposed 
will have an adverse economic impact on any particular small business or to 
accurately estimate what the extent of any impact might be. The effect, if any, 
is totally dependent on individual circumstances. If no disease occurs on a 
facility, there will be no impact. If a disease occurs, the effect will vary 
depending on which disease occurs, the location of the facility, the design and 
management methods of the facility, what time of year the outbreak occurs, the 
species potentially affected by the disease, the current state of knowledge and 
technology related to disease containment and control and other factors. 
The Texas Parks and Wildlife Department has not filed a local impact statement 
with the Texas Employment Commission as this agency has determined that the 
sections as proposed will not impact local economies. 
TPWD has not prepared a Takings Impact Assessment for these rules because 
Government Code, sec.2007.003 provides an exception to the requirement for rules 
or proclamations adopted for the purpose of regulating or controlling 
nonindigenous or exotic aquatic species. 
Comments on the proposed rules may be submitted to Joedy Gray, Inland Fisheries 
Division, Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, 
Texas 78744. Comments may be faxed to Mr. Gray at (512) 389-4388. Written or 
faxed comments must be received no later than 5:00 p.m., Monday, April 13, 1998 
in order to be considered. 
These amendments are proposed under Chapter 66, sec.66.007 of the Texas Parks 
and Wildlife Code which prohibits possession of exotic harmful or potentially 
harmful fish, shellfish or aquatic plants except as authorized by rule or 
permit, requires permittees to provide proof to the department of the disease 
free status of animals possessed under such permits and authorizes the 
department to make rules to carry out these provisions. The proposed amendments 
affect Texas Parks and Wildlife Code sec.66.007.

sec. 57.111.Definitions.
The following words and terms, when used in these rules, shall have the 
following meanings unless the context clearly indicates otherwise.
<nl>Certified Inspector <ol><nl>- An employee of the Texas Parks and Wildlife 
Department or the Texas A&M Sea Grant College Program who has satisfactorily 
completed a department approved course in clinical analysis of shellfish.<ol>
Disease-Free - A status based on the result of an examination conducted by a 
department approved shellfish disease specialist which certifies a group of 
aquatic organisms as being free of <nl>disease.<ol>[contagious pathogens or 
injurious parasites.] 
<nl>Manifestations of disease <ol><nl>- manifestations of disease include, but 
are not limited to, one or more of the following: heavy or unusual predator 
activity, empty guts, emaciation, rostral deformity, digestive gland atrophy or 
necrosis, gross pathology of shell or underlying skin typical of viral 
infection, fragile or atypically soft shell, gill fouling, or gill 
discoloration. <ol>

sec.57.112. General Rules. 
(a)-(b) (No change.) 
<nl>(c)<ol> <nl> It is an offense to possess grass carp taken from public waters 
for which a valid Triploid Grass Carp Permit is currently in effect. <ol>
<nl>(d)<ol>[c] Violation of any provision of a permit issued under these rules 
is a violation of these rules.

sec.57.113. Exceptions.
(a) (No change.) 
(b) A person may possess exotic harmful or potentially harmful fish or 
shellfish, <nl>exclusive of grass carp,<ol> without a permit, if the intestines 
of the fish or shellfish have been removed. 
<nl>(c)<ol> <nl> A person may possess grass carp harvested from public waters 
that have not been permitted for triploid grass carp, without a permit, if the 
intestines have been removed. <ol>
<nl>(d)<ol>[(c)] A fish farmer who holds a valid exotic species permit issued by 
the department may possess, propagate, transport or sell silver carp 
(Hypophthalmicthys molitrix), black carp (Mylophryngogon piceus, also commonly 
known as snail carp), bighead carp (Aristichthys/Hypophthalmicthys nobilis), 
[Japanese eel (Anguilla japonicus)], blue tilapia (Tilapia aurea), Mozambique 
tilapia (Tilapia mossambica), Nile tilapia (Tilapia nilotica), or hybrids 
between the three tilapia species, as provided by conditions of the permit and 
these rules. 
<nl>(e)<ol> [(d)] A fish farmer who holds a valid exotic species permit issued 
by the department may possess, propagate, transport, or sell Pacific white 
shrimp (Penaeus vannamei) provided the exotic shellfish meet disease free 
certification requirements listed in sec.57.114 of this title (relating to 
Health Certification of Exotic Shellfish) and as provided by conditions of the 
permit and these rules. 
<nl>(f)<ol>[(e)] An operator of a wastewater treatment facility in possession of 
a valid exotic species permit issued by the department may possess and transport 
water hyacinth (Eichornia crassipes) to their facility only for the purpose of 
wastewater treatment. 
<nl>(g)<ol>[(f)] A person may possess Mozambique tilapia in a private pond 
subject to compliance with sec.57.116(d) of this title (relating to Exotic 
Species Transport Invoice). 
<nl>(h)<ol>[(g)] The holder of a valid triploid grass carp permit issued by the 
department may possess triploid grass carp as provided by conditions of the 
permit and these rules. 
<nl>(i)<ol>[(h)] A licensed retail or wholesale fish dealer is not required to 
have an exotic species permit to purchase or possess:
(1) live individuals of species or hybrids of species listed in subsection (c) 
of this section held in the place of business, unless the retail or wholesale 
fish dealer propagates one or more of these species. However, such a dealer may 
sell or deliver these species to another person only if the intestines or head 
of the fish are removed; or 
(2) Live Pacific white shrimp (Penaeus vannamei) held in the place of business 
if the place of business is not located within the Harmful or Potentially 
Harmful Exotic Species Exclusion Zone. However, such a dealer may only sell or 
deliver this species to another person if the shrimp are dead and packaged on 
ice or frozen. 
<nl>(j)<ol>[(i)] The department is authorized to stock planktivorous fish 
including silver carp (Hypophthalmichthys molitrix) and bighead carp 
(Aristichthys/Hypophthalmichthys nobilis) if necessary in Lake Rita Blanca, 
Hartley County, in order to investigate their utility as biological agents to 
improve water quality and enhance fishery management.
<nl>(k)<ol>[(j)] The department is authorized to stock triploid grass carp into 
public waters in situations where the department has determined that there is a 
legitimate need, and when stocking will not affect threatened or endangered 
species, coastal wetlands, or specific management objectives for other important 
species. 
<nl>(l)<ol>[(k)] A fish farmer who holds a valid exotic species permit issued by 
the department may possess, propagate, transport and sell Pacific blue shrimp 
(Penaeus sylirostris) provided the exotic shellfish are cultured under 
quarantine conditions in private facilities located outside the harmful or 
potentially harmful exotic species exclusion zone, and meet disease free 
certification requirements listed in sec.57.114 of this title (relating to 
Health Certification of Exotic Shellfish) and as provided by conditions of the 
permit and these rules 
<nl>(m)<ol> <nl> Any person who, as of the effective date of these rules, holds 
a valid exotic species permit issued by the department to possess, propagate, 
transport or sell Anguilla japonicus may continue to conduct such activities as 
authorized by the conditions of the permit. The permit may not be transferred to 
any other person, site or entity. <ol>

sec.57.114. Health Certification of Exotic Shellfish.
(a)-(c) (No change.) 
<nl>(d)<ol> <nl> Any person in possession of exotic shellfish stocks who 
observes one or more manifestations of disease shall: <ol>
<nl>(1)<ol> <nl> immediately quarantine the private facility, notify the 
department and request an inspection from a department certified inspector; or 
<ol>
<nl>(2)<ol> <nl> immediately quarantine the private facility, notify the 
department and submit samples of the affected shellfish to a department approved 
disease specialist for analysis. Results of the required analyses shall be 
forwarded to the department immediately upon receipt. <ol>
<nl>(e)<ol> <nl> Upon receiving a request from a permit holder under subsection 
(d), the department certified inspector shall inspect the private facility, 
complete an inspection report provided by the department and notify the 
department and the permit holder of the results. <ol>
<nl>(f)<ol> <nl>Before discharging any waste which at any time has been in 
contact with exotic shellfish into or adjacent to water in the state, the 
permittee shall have the private facility and a sample of the shellfish which 
are or were in contact with the waste inspected by a department certified 
inspector no more than 72 hours prior to discharge. The results of the 
inspection must be immediately submitted to the department on the department 
approved inspection form. If the results indicate the absence of any 
manifestations of disease, the permittee may discharge from the particular 
structure(s) which was inspected. If the results indicate the presence of one or 
more manifestations of disease, the permittee shall immediately place the 
private facility under quarantine and immediately submit samples of the 
shellfish from the affected portions of the facility to a department approved 
shellfish disease specialist for analysis. Results of the required analyses 
shall be forwarded to the department immediately upon receipt. <ol>
<nl>(g)<ol> <nl> A private facility quarantined under subsections (d) or (f) 
shall remain under quarantine condition until the department removes the 
quarantine in writing or authorizes an appropriate disposal method based on the 
required analyses. <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 February 25, 1998.
TRD-9802754
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4642

CHAPTER 58.Oysters and Shrimp
SUBCHAPTER B.Statewide Shrimp Fishery Proclamation
31 TAC sec.58.160
The Texas Parks and Wildlife Department proposes amendments to sec.58.160, 
concerning the Statewide Shrimp Fishery Proclamation. Responsibility for 
establishing seasons, bag limits, means and methods for taking wildlife 
resources is delegated to the Texas Parks and Wildlife Commission under Parks 
and Wildlife Code, Chapter 61, Uniform Wildlife Regulatory Act (Wildlife 
Conservation Act of 1983). 
The proposed change extends the sunset of the live bait-fish exemption for 
commercial bait shrimp fishermen until September 1, 2001 and adds a temporary 
exemption for retaining Atlantic cutlassfish. 
Department outreach efforts with Texas bait dealers indicate the exemption 
adopted in 1997 is working well to provide adequate numbers of live bait-fish 
for recreational anglers without creating undo resource problems or abuse. 
Extending the exemption would allow for further evaluation of alterative 
management measures in this fishery. The addition of an exemption for the 
retention of Atlantic cutlassfish for bait should provide a better opportunity 
to serve the Texas offshore anglers. These rules as proposed are based on 
findings of fact by the department. 
Robin Riechers, staff economist, has determined that for each of the first five 
years that the rule as proposed is in effect, there will be no additional fiscal 
implications to state or local governments as a result of enforcing or 
administering the rules. Since the rule is less restrictive than the rule 
currently in place, the fiscal implications to small businesses should be 
positive. 
Mr. Riechers also has determined that for each of the first five years the rule 
as proposed is in effect the public benefit anticipated as a result of enforcing 
the rule as proposed will be a simplification of enforcement, and public 
benefits will occur through the continued exemption which enhances the 
availability of bait for sport fishermen. 
There will be no additional costs to small businesses or persons required to 
comply with the rule as proposed. There will be some positive effect on small 
businesses as the extension of the increased season and bag limit for harvesting 
fish will continue and new species for harvest are included to provide enhanced 
market opportunities for bait fish. 
The department has not filed a local impact statement with the Texas Employment 
Commission as required by the Administrative Procedures Act, Government Code, 
sec.2001.022, as the agency has determined that the rule as proposed will not 
impact local economies. 
Comments on the proposed rule may be submitted to Paul Hammerschmidt, Coastal 
Fisheries Division, Texas Parks and Wildlife Department, 4200 Smith School Road, 
Austin, Texas 78744; (512) 389-4650 or 1-800-792-1112 extension 4650.
The amendment is proposed under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
commission with authority to establish wildlife resource regulations for this 
state. 
The amendment affects Parks and Wildlife Code Chapter 61. 

sec.58.160.Taking or Attempting to Take Shrimp (Shrimping) -- General Rules. 
(a)-(d) (No change.) 
(e) Other aquatic life taken incidental to legal shrimping operations. 
(1) Licensed Commercial Shrimp Boats. 
(A) (No change.)
(B) On board a licensed commercial shrimp boat a catch of finfish or other 
aquatic life, in any combination, may be retained in an amount not to exceed 50% 
by weight of the total trawl catch of shrimp by weight.
(i) (No change.)
(ii) From June 1 through September 30 of each year, in addition to the provision 
of subparagraph (B) of this paragraph)<nl>:<ol> 
<nl>(I)<ol> <nl> up to 1,500 live non-game fish, not regulated by bag or size 
limits, may be retained on board a licensed commercial bait-shrimp boat for bait 
purposes only; and <ol>
<nl>(II)<ol> <nl> up to 3,600 (300 dozen) Atlantic cutlassfish (Trichiurus 
lepturus) (also known as ribbonfish) may be retained on board a licensed 
commercial bait-shrimp boat for bait purposes only. <ol>
<nl>(III)<ol> <nl> The provisions of this clause will expire September 1, 2001. 
<ol>[, up to 1500 live non-game fish, not regulated by bag or size limits, may 
be retained on board a licensed commercial bait-shrimp boat for bait purposes 
only. The provisions of this clause will expire September 1, 1998.] 
(2) (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 25, 1998.
TRD-9802752
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4642

SUBCHAPTER C.Statewide Crab Fishery Proclamation
31 TAC sec.sec.58.201-58.210
The Texas Parks and Wildlife Department proposes new sec.sec.58.201-58.210, 
concerning Crab Fishery Proclamation. Responsibility for establishing provisions 
enabling a commercial crab fishery license limitation program, including 
creation of a commercial crab fishing license, is delegated to the Texas Parks 
and Wildlife Commission by passage of House Bill 2542 by the 75th Legislature. 
The proposed new rules create a crab license management program, including rules 
to establish: a commercial crab fishing license; eligibility requirements to 
receive the license in the 1998-1999 license year and subsequent years; 
provisions for transfer of licenses; the number of licenses an individual may 
possess; rules regarding license requirements for persons engaged in commercial 
crab fishing; and provisions for suspension and revocation of licenses. The 
proposed new regulations also create a Review Board to review and advise the 
department regarding appeal and hardship cases for eligibility into the license 
management program, and establish a license buyback program, under which the 
department may purchase and retire commercial crab licenses in the future. These 
rules as proposed are based on findings of fact by the Department and identified 
in 31 TAC sec.57.691(b) Fishery Management Plans. 
Robin Riechers, staff economist, has determined that for each of the first five 
years that the rules as proposed are in effect, there will be no additional 
fiscal implications to state or local governments as a result of enforcing or 
administering the rules. 
Mr. Riechers also has determined that for each of the first five years the rules 
as proposed are in effect the public benefit anticipated as a result of 
administering the new rules will be the development of a more efficient and 
economically stable crabbing industry, thus maximizing the social and economic 
benefits to the state. 
There will be some effects on small businesses and individuals required to 
comply with the new rules as proposed. These may be additional costs associated 
with the license fees, gear modifications, and other program aspects, but in the 
long-term both individual efficiency and profits should rise as stock abundance 
increases. 
License Fees: The legislatively mandated fees for a newly established commercial 
crab fisherman's license will have positive economic impacts on crab fishers 
whose past annual license(s) and crab trap tag expenditures exceed the cost of 
the new license fee and will have negative impacts on those crab fishers whose 
past annual license(s) and crab trap tag expenditures did not exceed the cost of 
the new license fee. The distribution of these types of crab fishers is not 
known. 
Commercial Crab Fishing Gear Marking: There will be some minimal costs 
associated with individuals complying with the new gear marking requirements. 
However, since the marking requirements will enhance enforcement, thereby 
reducing the opportunity for theft of traps nd crabs, there will be positive 
economic benefits due to a reduction in lost or stolen gear and crabs. 
Degradable Panel Options: There will be some small costs associated with 
individuals complying with the new degradable panel options. The new options 
should, however, minimize reported premature degradation of the panel using the 
twine option, thereby reducing premature loss of crabs from actively fishing 
traps. 
The department has not filed a local impact statement with the Texas Employment 
Commission as required by the Administrative Procedures Act, Government Code, 
sec.2001.022, as the agency has determined that the rules as proposed will not 
impact local economies. 
Comments on the proposed rule may be submitted to Paul Hammerschmidt, Coastal 
Fisheries Division, Texas Parks and Wildlife Department, 4200 Smith School Road, 
Austin, Texas 78744; (512) 389-4650 or 1-800-792-1112 extension 4650.
The new rules are proposed under Parks and Wildlife Code, Chapter 78, Subchapter 
B, which delegate to the Texas Parks and Wildlife Commission the authority to 
establish provisions enabling a commercial crab fishery license limitation 
program, including creation of commercial crab fishing licenses.
The new rules affect Parks and Wildlife Code, Chapter 78, Subchapter B.

sec.58.201. Crab License Management Program.
Delegation of Authority. The Commission delegates power and authority to the 
executive director to administer the Crab License Management Program.

sec.58.202. Definitions.
The following words and terms, when used in this subchapter shall have the 
following meanings, unless the context clearly indicates otherwise. 
(1) Coastal waters--All the salt water of this state (as defined in sec. 65.3 of 
this title (relating to Definitions)), including that portion of the Gulf of 
Mexico within the jurisdiction of the state extending nine nautical miles from 
the Gulf shoreline. 
(2) Crab--All species in the families Portunidae and Xanthidae.
(3) Commercial crab fishing--Pursuing, taking, attempting to take, or landing 
crabs in this state for pay or for the purpose of sale, barter, or exchange.
(4) Possess--The act of having in possession or control, keeping, detaining, 
restraining or holding. 

sec.58.203. Licensing. 
(a) A person may not engage in commercial crab fishing without a commercial crab 
fisherman's license. 
(b) a person may operate a boat bearing a commercial crab fisherman's license 
plate, ONLY if that person possesses on board the boat the following 
documentation: 
(1) a commercial crab fisherman's license or a general commercial fisherman's 
license, and 
(2) a copy of an affidavit permitting the boat operator to fish the commercial 
crab fishing devices owned by the person to whom the commercial crab fisherman's 
license was issued. The affidavit must contain the date, original signature of 
the licensee, and commercial crab license number which matches the commercial 
crab license plate number on the boat.
(c) A person operating a boat for the purpose of commercial crab fishing is not 
required to possess a commercial fishing boat license.

sec.58.204. License Expiration.
Licenses issued under authority of Parks and Wildlife Code, Chapter 78, and this 
subchapter are valid only during the yearly period for which they are issued 
without regard to the date on which the licenses are acquired. Each yearly 
period begins on September 1 and extends through August 31 of the next year. 

sec.58.205.Display of License. 
(a) A boat operated for the purposes of commercial crab fishing is required to 
have a commercial crab fisherman's license plate issued under this subchapter 
prominently displayed as to be clearly visible from both sides of the boat. 
(b) No more than one set of commercial crab fisherman's license plates may be on 
board a commercial crab fishing boat at any one time. 

sec.58.206.Issuance and Renewal of Commercial Crab Fisherman's License. 
(a) Beginning September 1, 1998, the department will issue a commercial crab 
fisherman's license only to a person who documents to the satisfaction of the 
department that the person concurrently held each of the following licenses and 
tags during the period September 1, 1995 through November 13, 1996: 
(1) General commercial fisherman's license; 
(2) Commercial fishing boat license; and 
(3) One or more commercial crab trap tags. 
(b) After August 31, 1999, the department may renew a commercial crab 
fisherman's license only if the person seeking to renew the license held the 
license to be renewed during the previous license year. 
(c) Individuals not meeting the requirements set forth in subsections (a) and 
(b) of this section may appeal by application to the Crab License Management 
Review Board as provided in Parks and Wildlife Code, sec.78.103.
(d) When evaluating a license application or license renewal application, the 
department may also consider department records pertaining to the applicant's 
history in the crab fishery. 

sec.58.207.License Transfer.
(a) Except as provided in this section, a commercial crab fisherman's license 
may not be transferred from one person to another before September 1, 2001. 
(b) A commercial crab fisherman's license may be transferred at any time, by 
will, or otherwise to any person who in the absence of a will would be entitled 
to all or a portion of the licensee's property upon death of the licensee. 

sec.58.208.Limit on Number of Licenses Held; Designated License Holder. 
(a) Except as provided by subsection (b) of this section, no person may hold or 
directly control more than three commercial crab fisherman's licenses. 
(b) A commercial crab fisherman's license may only be issued to an individual. A 
person, other that an individual who wishes to retain or seeks to renew a 
license must designate an individual to whom the license will be issued. 

sec.58.209.License Suspension and Revocation. 
(a) The executive director, after notice and the opportunity for a hearing, may 
suspend a commercial crab fisherman's license if the license holder and all 
other operators of the vessel operated for the purposes of commercial crab 
fishing, in the aggregate, are convicted of two or more flagrant offenses. The 
suspension shall be for: 
(1) six months, if: 
(A) the date of each offense is within any 12- consecutive-month period after 
August 31, 1998; and 
(B) the license holder has not previously had a commercial crab fisherman's 
license suspended under this section; or 
(2) 12 months, if the date of each offense is within any 12-consecutive-month 
period and the license holder has previously had a commercial crab fisherman's 
license suspended under this section. 
(b) License Renewal after Suspension: 
(1) Except as provided by Subsection (c), a license suspension under this 
section does not affect the license holder's eligibility to renew the license 
after the suspension expires. 
(2) The holder of a license that has been suspended may not apply for a renewal 
of the license during the period of suspension. 
(c) The executive director, after notice and the opportunity for a hearing, may 
permanently revoke a commercial crab fisherman's license if: 
(1) the license holder has previously had a commercial crab fisherman's license 
suspended twice under this section; and 
(2) the license holder and all other operators of the vessel operated for the 
purposes of commercial crab fishing, in the aggregate, are subsequently 
convicted of two or more flagrant offenses in any 12-consecutive-month period 
beginning not earlier than the date of the beginning of the most recent 
suspension under this section. 
(d) For purposes of this section, a flagrant offense includes:
(1) removing crab traps from the water or removing crabs from crab traps 30 
minutes before or 30 minutes after legal crabbing hours prescribed by a 
proclamation of the commission; 
(2) fishing crab traps in a restricted area as set forth in sec.65.78 of this 
title (relating to Crabs and Ghost Shrimp); 
(3) fishing crab traps in excess of legal trap numbers prescribed by a 
proclamation of the commission; 
(4) fishing for crabs without obtaining the appropriate license, if required, as 
prescribed in this section; or 
(5) theft of crabs or crab traps.

sec.58.210. License buyback program.
(a) Delegation of Authority. The commission delegates power and authority to the 
executive director to administer the Crab License Buyback Program. 
(b) Twenty percent of commercial crab fisherman's license and commercial crab 
fisherman's license transfer fees shall be set aside to be used only for the 
purpose of buying back commercial crab fisherman's licenses from a willing 
license holder. 
(c) License buyback application period. 
(1) The department will open license buyback bid application periods (hereafter 
referred to as application) if available funds permit.
(2) The department shall establish during each application period a deadline for 
receipt of all applications. 
(d) License buyback application requirements. 
(1) The department shall consider all applications to the Crab License Buyback 
Program provided the applicants meet the following requirements:
(A) A completed License Buyback Application form furnished by the department has 
been submitted to the Department by the application deadline; 
(B) The applicant is the owner of the license submitted for buyback; and 
(C) The applicant has submitted to the Department copies of all supplemental 
information as required in this subsection. 
(2) A completed License Buyback Application shall contain: 
(A) full name of the applicant; 
(B) current address of applicant's residence; 
(C) social security number of applicant; 
(D) a copy of legal documentation that: 
(i) documents applicant holds the sole rights and privileges to the license; or 
(ii) documents that all members of a partnership or association, or each officer 
of a corporation, and the owner of a majority of a corporation's corporate 
stock, are in agreement to apply to the license buyback program.
(E) a copy of current commercial crab fisherman's license; and 
(F) if required, the applicant's bid offer, in U.S. dollars.
(3) Department records will be used to verify all information supplied by or 
pertaining to the applicant's history in the crab fishery and in cases where the 
applicant has not provided adequate information for proper consideration of the 
application. 
(e) Crab license buyback criteria. 
(1) The department may establish criteria each license year which will be used 
to determine qualifications for license buyback. 
(2) The department may consider: 
(A) duration of participation in fishery prior to enactment of Parks and 
Wildlife Code, sec.sec. 78.101-78.114; 
(B) amount of funds accumulated in the Crab License Buyback Account; 
(C) number of commercial crab fisherman's licenses in the fishery issued in the 
license year of the specific bid offer application period;
(D) bid offers from previous application periods; 
(E) established open market prices for licenses; and 
(F) other relevant factors. 
(f) Application Ranking Procedures. 
(1) Ranking values will be assigned to all applications based on the above 
criteria. 
(2) The Department will purchase licenses beginning with the highest ranking to 
the lowest. 
(3) If bid offers are equally ranked, the Department will rank according to the 
ascending alphabetical order of the applicant's last name. 
(g) Notification of acceptance or rejection of application.
(1) the department will notify each applicant in writing within 45 days of 
receipt of application regarding acceptance or rejection of application bid 
offer. 
(2) Applicants whose bids are accepted must then notify the department of their 
intent to accept or reject the offer from the department within 15 days of the 
postmark of the notification letter sent by the department.
(3) The unsuccessful applicant may withdraw, resubmit, or amend an application 
for consideration during any future application periods.
(4) The department will continue to purchase in rank order as the buyback fund 
permits. 
(h) Delegation of purchasing authority. The department may designate other 
qualified agents to purchase licenses on behalf of the department provided all 
purchased licenses are surrendered to the department and retired.
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 25, 1998.
TRD-9802751
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4642

CHAPTER 65.Wildlife
SUBCHAPTER A.Statewide Hunting and Fishing Proclamation
The Texas Parks and Wildlife Department proposes the repeal of sec.sec.65.33, 
65.50, and 65.52; amendments to sec.sec.65.3, 65.9-65.11, 65.24, 65.26, 65.28, 
65.31, 65.42, 65.46, 65.54, 65.71, and 65.72; and new sec.65.30, concerning the 
Statewide Hunting and Fishing Proclamation. 
The amendment to sec.65.3, concerning Definitions, removes the crossbow from the 
definition of lawful archery equipment, although the crossbow remains a legal 
means; adds a definition of antler point; replaces the word "handicapped" with 
the word "disability"; and numbers the definitions to conform with the style 
sheet of the Texas Register.
The amendment to sec.65.9, concerning Open Seasons: General Rules, rewords 
subsections (a)-(c) for clarification, eliminates subsection (d), which 
conflicts with provisions of the Parks and Wildlife Code, and eliminates 
provisions made redundant by the passage of House Bill 2542, Acts of the 75th 
Texas Legislature. The amendment to sec.65.10, concerning Possession of Wildlife 
Resources, alters subsection (a) to make reference "permanent residence" rather 
than "final destination," which is no longer defined. Additional changes to the 
provisions of sec.65.10 may be proposed in a future rulemaking. The department 
is conducting a series of public meetings to solicit public comment on the 
possible modification or elimination of the tagging requirements of Parks and 
Wildlife Code, Chapter 42. The amendment to sec.65.11, concerning Means and 
Methods, adds clarifying language to specify lawful methods and deletes 
provisions applicable to falconry that are being moved to another subchapter. 
The amendment to sec.65.24, concerning Permits, adds desert bighorn sheep to the 
list of game animals to which the provisions of the section apply. The amendment 
to sec.65.26, concerning Managed Lands Deer Permits, adds provisions for 
including mule deer in certain aspects of the regulation. The amendment to 
sec.65.28, concerning Landowner Assisted Management Permit System (LAMPS), adds 
language to clarify that all tagging requirements imposed as a condition of 
license privilege still apply. New sec.65.30, concerning Desert Bighorn Sheep 
Permits, specifies the special requirements for persons hunting desert bighorn 
sheep. The amendment to sec.65.31, concerning Antlerless Mule Deer Permits, 
rewords subsection (b) to eliminate confusion. The amendment to sec.65.42, 
concerning Deer: eliminates the LAMPS program in eight counties along the upper-
central Gulf coast; initiates a 16-day white-tailed deer season in two Panhandle 
counties; doubles the number of doe days in five deep East Texas counties and 
moves the doe day period from the beginning of the season to either side of 
Thanksgiving; creates a special requirement for the take of buck deer in four 
south-central counties; allows spike bucks to be taken during the special late 
season, the muzzleloader season, and on properties in the Managed Lands Deer 
Program; and opens a mule deer season in a portion of Andrews County. The change 
to sec.65.46, concerning Squirrel, lengthens the season in 51 counties in East 
Texas. The amendment to sec.65.54, concerning Game Birds, adds a reference to 
provisions for hunting by means of falconry that are contained in the Raptor 
Proclamation. The amendment to sec.65.71, concerning Reservoir Boundaries, adds 
clarifying language to the boundary description of Lake O'the Pines and a 
boundary description for Lake Pat Mayse. The amendment to sec.65.72, concerning 
Fish, makes crossbows a lawful means for taking nongame fish; eliminates the 
minimum length limits for largemouth bass on Lakes Ray Roberts and Madisonville 
and replaces them with slot limits; modifies slot limits for largemouth bass on 
Lakes Fork and Monticello; corrects an inaccurate reference to a roadway serving 
as a regulatory boundary below Lake Livingston; implements special bag 
requirements for hybrid striped bass and white bass on Lake Pat Mayse and Lake 
O'the Pines; implements new bag restrictions for catfish on Tankersley 
Reservoir; clarifies that hair or feathers may be lawfully used on flies for use 
in certain parts of the Guadalupe River; implements a prohibition on juglines, 
throwlines, and trotlines on Tankersley Reservoir; places Bell Street Lake under 
the provisions applicable to community fishing lakes; and implements new size 
limits for vermilion snapper. 
Robert Macdonald, Wildlife Division regulations coordinator, has determined that 
for each of the first five years that the proposed rules are in effect, there 
will be no additional fiscal implications to state or local governments as a 
result of enforcing or administering the proposed rules. 
Mr. Macdonald also has determined that for each of the first five years the 
repeals, amendments and new rule as proposed are in effect, the public benefit 
anticipated as a result of enforcing the rules as proposed will be the 
dispensation of the agency's statutory duty to protect and conserve the wildlife 
resources of this state, the duty to equitably distribute opportunity for the 
enjoyment of those resources among the citizens, and the execution of the 
commission's policy to maximize recreational opportunity within the precepts of 
sound biological management practices. 
There will be no effect on small businesses. There are no additional economic 
costs to persons required to comply with the rules as proposed. 
The department has not filed a local impact statement with the Texas Workforce 
Commission as required by Government Code, sec.2001.022, as this agency has 
determined that the rules as proposed will not impact local economies. The 
department has determined that there will not be a taking of private real 
property, as defined by Government Code, Chapter 2007, as a result of the 
proposed rules. 
Comments on the proposed rules may be submitted to Robert Macdonald (Wildlife 
(512) 389-4775), Ken Kurzawski (Inland Fisheries 389-4591), Paul Hammerschmidt 
(Coastal Fisheries 389-4650), David Sinclair (Wildlife Enforcement 389-4854), or 
Dennis Johnston (Aquatic Enforcement 389-4628), Texas Parks and Wildlife 
Department, 4200 Smith School Road, Austin, Texas 78744; (512) 389-4775 or 1-
800-792-1112. 

Division 1. General Provisions
31 TAC sec.sec.65.3, 65.9-65.11, 65.24, 65.26, 65.28, 65.30, 65.31
The amendments and new section are proposed under the authority of Parks and 
Wildlife Code, Chapter 61, Uniform Wildlife Regulatory Act (Wildlife 
Conservation Act of 1983) which provides the Commission with authority to 
establish wildlife resource regulations for this state. 
The amendments and new section affect Parks and Wildlife Code, Chapters 61.

sec.65.3. Definitions.
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise. All other 
words and terms in this chapter shall have the meanings assigned in the Texas 
Parks and Wildlife Code.
<nl>(1)<ol> Agent - A person authorized by a landowner to act on behalf of the 
landowner. For the purposes of this chapter, the use of the term "landowner" 
also includes the landowner's agent. 
<nl>(2)<ol> Annual bag limit - The quantity of a species of a wildlife resource 
that may be taken from September 1 of one year to August 31 of the following 
year. 
<nl>(3)<ol> Antlerless deer - A deer having no hardened antler protruding 
through the skin. 
<nl>(4)<ol> <nl> Antler point - a projection on a deer antler that is at least 
one inch long, with the length exceeding the width at one inch or more of 
length. <ol>
<nl>(5)<ol> Artificial lure - Any lure (including flies) with hook or hooks 
attached that is man-made and is used as a bait while fishing.
<nl>(6)<ol> Bait - Something used to lure any wildlife resource. 
<nl>(7)<ol> Baited area - Any area where minerals, vegetative material or any 
other food substances are placed so as to lure a wildlife resource to, on, or 
over that area. 
<nl>(8)<ol> Bearded hen - A female turkey possessing a clearly visible beard 
protruding through the feathers of the breast. 
<nl>(9)<ol> Buck deer - A deer having a hardened antler protruding through the 
skin. 
<nl>(10)<ol> Cast net - A net which can be hand-thrown over an area. 
<nl>(11)<ol> Coastal waters boundary - All public waters east and south of the 
following boundary are considered coastal waters: Beginning at the International 
Toll Bridge in Brownsville, thence northward along U.S. Highway 77 to the 
junction of Paredes Lines Road (F.M. Road 1847) in Brownsville, thence northward 
along F.M. Road 1847 to the junction of F.M. Road 106 east of Rio Hondo, thence 
westward along F.M. Road 106 to the junction of F.M. Road 508 in Rio Hondo, 
thence northward along F.M. Road 508 to the junction of F.M. Road 1420, thence 
northward along F.M. Road 1420 to the junction of State Highway 186 east of 
Raymondville, thence westward along State Highway 186 to the junction of U.S. 
Highway 77 near Raymondville, thence northward along U.S. Highway 77 to the 
junction of the Aransas River south of Woodsboro, thence eastward along the 
south shore of the Aransas River to the junction of the Aransas River Road at 
the Bonnie View boat ramp; thence northward along the Aransas River Road to the 
junction of F.M. Road 629; thence northward along F.M. Road 629 to the junction 
of F.M. Road 136; thence eastward along F.M. Road 136 to the junction of F.M. 
Road 2678; then northward along F.M. Road 2678 to the junction of F.M. Road 774 
in Refugio, thence eastward along F.M. Road 774 to the junction of State Highway 
35 south of Tivoli, thence northward along State Highway 35 to the junction of 
State Highway 185 between Bloomington and Seadrift, thence northwestward along 
State Highway 185 to the junction of F.M. Road 616 in Bloomington, thence 
northeastward along F.M. Road 616 to the junction of State Highway 35 east of 
Blessing, thence southward along State Highway 35 to the junction of F.M. Road 
521 north of Palacios, thence northeastward along F.M. Road 521 to the junction 
of State Highway 36 south of Brazoria, thence southward along State Highway 36 
to the junction of F.M. Road 2004, thence northward along F.M. Road 2004 to the 
junction of Interstate Highway 45 between Dickinson and La Marque, thence 
northwestward along Interstate Highway 45 to the junction of Interstate Highway 
610 in Houston, thence east and northward along Interstate Highway 610 to the 
junction of Interstate Highway 10 in Houston, thence eastward along Interstate 
Highway 10 to the junction of State Highway 73 in Winnie, thence eastward along 
State Highway 73 to the junction of U.S. Highway 287 in Port Arthur, thence 
northwestward along U.S. Highway 287 to the junction of Interstate Highway 10 in 
Beaumont, thence eastward along Interstate Highway 10 to the Louisiana State 
Line. The waters of Spindletop Bayou inland from the concrete dam at Russels 
Landing on Spindletop Bayou in Jefferson County; public waters north of the dam 
on Lake Anahuac in Chambers County; the waters of Taylor Bayou and Big Hill 
Bayou inland from the saltwater locks on Taylor Bayou in Jefferson County; 
Lakeview City Park Lake, West Guth Park Pond, and Waldron Park Pond in Nueces 
County; Galveston County Reservoir and Galveston State Park ponds #1-7 in 
Galveston County; Lake Burke-Crenshaw and Lake Nassau in Harris County; Fort 
Brown Resaca, Resaca de la Guerra, Resaca de la Palma, Resaca de los Cuates, 
Resaca de los Fresnos, Resaca Rancho Viejo, and Town Resaca in Cameron County; 
and Little Chocolate Bayou Park Ponds #1 and #2 in Calhoun County are not 
considered coastal waters for purposes of this subchapter. 
<nl>(12)<ol> Community fishing lake - All public impoundments 75 acres or 
smaller located totally within an incorporated city limits or a public park, and 
all impoundments of any size lying totally within the boundaries of a state 
park. 
<nl>(13)<ol> Crab line - A baited line with no hook attached. 
<nl>(14)<ol> Daily bag limit - The quantity of a species of a wildlife resource 
that may be lawfully taken in one day. 
<nl>(15)<ol> Day - A 24-hour period of time that begins at midnight and ends at 
midnight. 
<nl>(16)<ol> Dip net - A mesh bag suspended from a frame attached to a handle. 
<nl>(17)<ol> Final destination for all wildlife resources - The permanent 
residence of a person possessing or receiving a wildlife resource or part of a 
wildlife resource; or a cold storage/processing facility, after the carcass of a 
wildlife resource has been finally processed. 
<nl>(18)<ol> Fish - 
(A) Game fish - Blue catfish, blue marlin, broadbill swordfish, brown trout, 
channel catfish, cobia, crappie (black and white), flathead catfish, Guadalupe 
bass, king mackerel, largemouth bass, longbill spearfish, pickerel, red drum, 
rainbow trout, sailfish, sauger, sharks, smallmouth bass, snook, Spanish 
mackerel, spotted bass, spotted seatrout, striped bass, tarpon, wahoo, walleye, 
white bass, white marlin, yellow bass, and hybrids or subspecies of the species 
listed in this subparagraph. 
(B) Non-game fish - All species not listed as game fish, except endangered and 
threatened fish, which are defined and regulated under separate proclamations. 
<nl>(19)<ol> Fishing - Taking or attempting to take aquatic animal life by any 
means. 
<nl>(20)<ol> Fish length - That straight-line measurement (while the fish is 
lying on its side) from the tip of the snout (jaw closed) to the extreme tip of 
the tail when the tail is squeezed together or rotated to produce the maximum 
overall length. 
<nl>(21)<ol> Fish species names - The names of fishes are those prescribed by 
the American Fisheries Society in the most recent edition of "A List of Common 
and Scientific Names of Fishes of The United States and Canada." 
<nl>(22)<ol> Fully automatic firearm - Any firearm that is capable of firing 
more than one cartridge in succession by a single function of the trigger. 
<nl>(23)<ol> Gaff - Any hand-held pole with a hook attached directly to the 
pole. 
<nl>(24)<ol> Gear tag - A tag constructed of material as durable as the device 
to which it is attached. The gear tag must be legible, contain the name and 
address of the person using the device, and, except for saltwater trotlines, the 
date the device was set out. 
<nl>(25)<ol> Gig - Any hand-held shaft with single or multiple points. 
<nl>(26)<ol> Jug line - A fishing line with five or less hooks tied to a free-
floating device. 
<nl>(27)<ol> Lawful archery equipment - longbow, recurved bow, <nl>and<ol> 
compound bow[, and crossbow]. 
<nl>(28)<ol> License year - The period of time for which an annual hunting or 
fishing license is valid. 
<nl>(29)<ol> Muzzleloader - Any firearm that is loaded only through the muzzle. 
<nl>(30)<ol> Natural bait - A whole or cut-up portion of a fish or shellfish or 
a whole or cut-up portion of plant material in its natural state, provided that 
none of these may be altered beyond cutting into portions. 
<nl>(31)<ol> Permanent residence - One's principal or ordinary home or dwelling 
place. This does not include a temporary abode or dwelling such as a 
hunting/fishing club, or any club house, cabin, tent, or trailer house used as a 
hunting/fishing club, or any hotel, motel, or rooming house used during a 
hunting, fishing, pleasure, or business trip. 
<nl>(32)<ol> Pole and line - A line with hook, attached to a pole. This gear 
includes rod and reel. 
<nl>(33)<ol> Possession limit - The maximum number of a wildlife resource that 
may be lawfully possessed at one time. 
<nl>(34)<ol> Purse seine (net) - A net with flotation on the corkline adequate 
to support the net in open water without touching bottom, with a rope or wire 
cable strung through rings attached along the bottom edge to close the bottom of 
the net. 
<nl>(35)<ol> Sail line - A type of trotline with one end of the main line fixed 
on the shore, the other end of the main line attached to a wind-powered floating 
device or sail. 
<nl>(36)<ol> Sand Pump - A self-contained, hand-held, hand-operated suction 
device used to remove and capture Callianassid ghost shrimp (Callichirus 
islagrande, formerly Callianassa islagrande) from their burrows. 
<nl>(37)<ol> Seine - A section of non-metallic mesh webbing, the top edge buoyed 
upwards by a floatline and the bottom edge weighted.
<nl>(38)<ol> Silencer or sound-suppressing device - Any device that reduces the 
normal noise level created when the firearm is discharged or fired. 
<nl>(39)<ol> Spear - Any shaft with single or multiple points, barbed or 
barbless, which may be propelled by any means, but does not include arrows. 
<nl>(40)<ol> Spear gun - Any hand-operated device designed and used for 
propelling a spear, but does not include the crossbow. 
<nl>(41)<ol> Spike-buck deer - A buck deer with no antler having a fork or 
branching point. 
<nl>(42)<ol> Throwline - A fishing line with five or less hooks and with one end 
attached to a permanent fixture. Components of a throwline may also include 
swivels, snaps, rubber and rigid support structures.
<nl>(43)<ol> Trap - A rigid device of various designs and dimensions used to 
entrap aquatic life. 
<nl>(44)<ol> Trawl - A bag-shaped net which is dragged along the bottom or 
through the water to catch aquatic life. 
<nl>(45)<ol> Trotline - A nonmetallic main fishing line with more than five 
hooks attached and with each end attached to a fixture.
<nl>(46)<ol> Umbrella net - A non-metallic mesh net that is suspended 
horizontally in the water by multiple lines attached to a rigid frame. 
<nl>(47)<ol> Upper-limb <nl>disability<ol>[handicap] - A permanent loss of the 
use of fingers, hand or arm in a manner that renders a person incapable of using 
a longbow, compound bow or recurved bow. 
<nl>(48)<ol> Wildlife resources - All game animals, game birds, and aquatic 
animal life. 
<nl>(49)<ol> Wounded deer - A deer leaving a blood trail.

sec.65.9. Open Seasons: General Rules. 
(a) (No change.) 
(b) [Seasons for game animals and game birds are closed during the hours between 
1/2-hour before sunrise.]
[(c)] No antlerless deer permit is required to <nl> take<ol> [possess] an 
antlerless deer [taken] during the archery-only open season, except on lands for 
which Managed Lands Deer permits have been issued.
[(d) Every game bird or game animal wounded by hunting and reduced to possession 
by the hunter must be killed immediately and become a part of the daily or 
annual bag limit.]
<nl>(c)<ol>[(e)] The hunting of roosting turkey is unlawful.

sec.65.10.Possession of Wildlife Resources.
(a) For all wildlife resources taken for personal consumption and for which 
there is a possession limit (except migratory birds), the possession limit shall 
not apply after the wildlife resource has reached <nl>the possessor's permanent 
residence and is finally processed<ol> [its final destination
(b) Proof of sex must remain with certain wildlife resources until the wildlife 
resource reaches its final destination and is <nl>finally <ol> [fully] 
processed. 
(1)-(2) (No change.) 
(c) A person may give, leave, receive, or possess any species of legally taken 
wildlife resource, or a part of the resource, that is required to have a tag or 
permit attached or is protected by a bag or possession limit, if the wildlife 
resource is accompanied by a wildlife resource document from the person who 
killed or caught the wildlife resource. <nl>For deer, turkey, or antelope, a 
properly executed<ol> [The] wildlife resource document shall accompany the 
wildlife resource until it reaches its final destination. <nl>For all other 
wildlife resources, a properly executed wildlife resource document shall 
accompany the wildlife resource until it reaches the possessor's permanent 
residence<ol>. The document must contain the following information: 
(1)-(4) (No change.) 
(5) the location where the wildlife resource was killed or caught (name of 
ranch; area; lake, bay or stream; and county). 
<nl>(d)<ol> It is a defense to prosecution if the person receiving the wildlife 
resource does not exceed any possession limit or possess a wildlife resource or 
a part of a wildlife resource that is required to be tagged if the wildlife 
resource or part of the wildlife resource is tagged.

sec.65.11. <nl>Lawful<ol> Means [and Methods
It is unlawful to hunt [or fish for] any of the wildlife resources of this state 
except by the means [and methods] authorized by this <nl>section and as provided 
in sec.65.19 of this title (relating to Hunting Deer with Dogs)<ol> [chapter]. 
(1) Firearms. 
(A) It is lawful to hunt game animals and game birds with any legal firearm, 
including muzzleloading weapons, except as specifically restricted in this 
<nl>section<ol>[chapter]. 
(B) (No change.) 
(C) It is unlawful to use rimfire ammunition to hunt deer, antelope, <nl>or<ol> 
desert bighorn sheep[, and elk or aoudad sheep (in counties where elk or aoudad 
sheep are game animals)]. 
(D) (No change.) 
(2) Archery. 
(A)-(D) (No change.) 
<nl>(E)<ol> <nl> Special archery-only seasons are restricted to lawful archery 
equipment only, except as provided in paragraph (3) of this section. <ol>
(3) Crossbow. Crossbows are lawful during any general open season except Eastern 
turkey seasons. A person having an upper-limb <nl> disability<ol> [handicap] may 
use a crossbow to hunt deer and turkey during an archery-only season, provided 
the person has in their immediate possession a physician's statement certifying 
the extent of the disability. When hunting turkey and all game animals other 
than squirrels by means of crossbow: 
(A)-(D) (No change.) 
(4) Falconry. 
[(A)] It is lawful to hunt any game bird or game animal by means of falconry 
<nl>under the provisions of Subchapter K of this chapter (relating to Raptor 
Proclamation)<ol>[, but the hunting is limited to persons holding valid permits 
issued by the department].
[(B) It is lawful to hunt game birds other than migratory game birds during the 
period from September 1 to March 1 of each year. Other wildlife resources may be 
hunted only during the regular open seasons as provided in this chapter.] 
[(C) The daily bag limit for game birds (except migratory game birds) is one, 
either sex, per raptor, and the possession limit is two, either sex, per raptor. 
The daily bag and possession limits for other wildlife resources are as provided 
under the regular seasons, bag, and possession limits for those resources.] 
<nl>(5)<ol> <nl> Special Provision. Except as provided in this paragraph, no 
motorized conveyance of any type shall be used to locate, herd, harass, or hunt 
desert bighorn sheep. Any person who qualifies for handicapped parking 
privileges under Transportation Code, Chapter 681 may possess a loaded firearm 
in or on a motor vehicle while hunting desert bighorn sheep and may hunt desert 
bighorn sheep from a motor vehicle, provided the motor vehicle is not in motion 
and the engine is not running.<ol>

sec.65.24. Permits. 
(a) (No change.) 
(b) No person may hunt white-tailed deer, mule deer, <nl> desert bighorn sheep, 
or<ol> antelope[, or elk] when permits are required unless that person has 
received from the landowner and has in possession a valid permit issued by the 
department. 
(c)-(d) (No change.)

sec.65.26. Managed Lands Deer (MLD) Permits.
(a) MLD permits may be issued only to a landowner who has a current WMP in 
accordance with sec.65.25 of this title (relating to Wildlife Management Plan) 
that specifies a harvest quota of buck and/or antlerless white-tailed deer or 
<nl>antlerless<ol> mule deer. 
(b) An applicant may request the issuance of permits for antlerless-only[, buck-
only,] or both-sex harvest quotas. 
(c)-(d) (No change.) 
(e) On all tracts of land for which both MLD buck permits and MLD antlerless 
permits have been issued for the harvest of white-tailed deer, and on properties 
for which the WMP specifies a harvest quota of zero for either sex: 
(1) <nl>the bag limit shall be five white-tailed deer, no more than three bucks, 
regardless of the county bag limit;<ol> 
<nl>(2)<ol> a hunter <nl>shall<ol> [may] use <nl>an<ol> [any] appropriate white-
tailed deer tag <nl> from<ol> [on] his or her hunting license, [regardless of 
the bag limit in the county,] provided the hunter also possesses an appropriate 
MLD permit for each deer taken; and 
<nl>(3)<ol>[(2)] the landowner may allow the hunting of antlerless <nl>and/or 
spike-buck<ol> white-tailed deer for 14 consecutive days beginning the day 
immediately following the last day of the general open season. 
(f)-(h) (No change.)

sec.65.28. Landowner Assisted Management Permit System (LAMPS). 
(a)-(c) (No change.) 
<nl>(d)<ol> <nl> All deer harvested on a tract of land for which LAMPS permits 
have been issued shall be tagged with the appropriate white-tailed deer tag from 
the hunting license of the person taking the deer.<ol>

sec.65.30. Desert Bighorn Sheep Permits.
(a) No person may hunt desert bighorn sheep without first attending an 
orientation conducted by the department during the year for which the permit is 
issued. 
(b) Any person hunting desert bighorn sheep shall notify the department between 
14 and 21 days prior to the date of the hunt to arrange for the tagging required 
by subsection (c) of this section.
(c) Any person taking a desert bighorn sheep shall, within 72 hours of taking 
the sheep, ensure that the sheep is permanently tagged in one horn by a lawful 
representative of the department.

sec.65.31. Antlerless Mule Deer Permits. 
(a) (No change.) 
(b) No antlerless mule deer hunting permit is required for mule deer killed 
during <nl>an<ol> [the] archery-only open season <nl> in a county for which the 
bag limit during an archery-only season is<ol> [, when bag limits are] 
designated as either sex. 
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 March 2, 1998.
TRD-9803018
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

Division 1. Seasons and Bag Limits-General Provisions
31 TAC sec.65.33
(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 Parks and 
Wildlife or in the Texas Register office, Room 245, James Earl Rudder Building, 
1019 Brazos Street, Austin.)
The repeals, amendment, and new section are proposed under the authority of 
Parks and Wildlife Code, Chapter 61, Uniform Wildlife Regulatory Act (Wildlife 
Conservation Act of 1983), which provides the Commission with authority to 
establish wildlife resource regulations for this state. 
The repeal affects Parks and Wildlife Code, Chapter 61.
sec.65.33. Elk Permits. 
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 March 2, 1998.
TRD-9803016
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

Division 2. Seasons and Bag Limits-Hunting Provisions
31 TAC sec.sec.65.42, 65.46, 65.54
The amendments are proposed under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
Commission with authority to establish wildlife resource regulations for this 
state. 
The amendments affect Parks and Wildlife Code, Chapter 61.

sec.65.42. Deer. 
(a) (No change.) 
(b) White-tailed deer. The open seasons and annual bag limits for white-tailed 
deer shall be as follows. 
(1) (No change.) 
(2) In Aransas, Atascosa, Bee, Calhoun, Cameron, Hidalgo, Live Oak, Nueces, 
Refugio, San Patricio, Starr, and Willacy counties, there is a general open 
season. 
(A)-(B) (No change.) 
(C) <nl>Special Late<ol> General [Late Antlerless-Only] Season. In the counties 
listed in this paragraph there is a <nl> special late<ol> general [late 
antlerless-only] season <nl> for the take of antlerless and spike-buck deer 
only<ol>. 
(i) (No change.) 
(ii) Bag limit:four antlerless <nl>or spike-buck<ol> deer <nl> in the aggregate, 
no more than two of which may be spike bucks<ol>. 
(3) In Brooks, Dimmit, Duval, Frio, Jim Hogg, Jim Wells, Kenedy, Kinney (south 
of U.S. Highway 90), Kleberg, LaSalle, Maverick, McMullen, Medina (south of U.S. 
Highway 90), Uvalde (south of U.S. Highway 90), Val Verde (that southeastern 
portion located both south of U.S. Highway 90 and east of Spur 239), Webb, 
Zapata, and Zavala counties, there is a general open season. 
(A)-(B) (No change.) 
(C) <nl>Special Late<ol> General [Late Antlerless-Only] Season. In the counties 
listed in this paragraph there is a <nl> special late<ol> general [late 
antlerless-only] season <nl> for the take of antlerless and spike-buck deer 
only<ol>. 
(i) (No change.) 
(ii) Bag limit: five antlerless <nl>or spike-buck<ol> deer <nl> in the 
aggregate, no more than three of which may be spike bucks<ol>. 
(4) No person may take or attempt to take more than one buck deer per license 
year from the counties, in the aggregate, listed within this paragraph, except 
as authorized under the provisions of sec.65.26 of this title (relating to 
Managed Land Deer Permits). 
(A) (No change.) 
(B) In Brazoria, Fort Bend, Goliad (south of U.S. Highway 59), Harris, Jackson 
(south of U.S. Highway 59), Matagorda, Victoria (south of U.S. Highway 59), and 
Wharton (south of U.S. Highway 59) counties, there is a general open season. 
(i)-(ii) (No change.) 
(iii) During the first 23 days of the general season, antlerless deer may be 
taken without antlerless deer permits unless MLD [or LAMPS] permits have been 
issued for the tract of land. If MLD [or LAMPS] permits have been issued, they 
must be attached to all antlerless deer harvested on the tract of land. After 
the first 23 days, antlerless deer may be taken only by MLD antlerless permits 
[or LAMPS permits].
(C)-(E) (No change.) 
(F) In <nl>Dallam,<ol> Hartley, Moore, Oldham<nl>,<ol> [and] Potter<nl>, and 
Sherman<ol> counties, there is a general open season. 
(i)-(iii) (No change.) 
(G) In Nacogdoches, Panola, Sabine, San Augustine and Shelby counties, there is 
a general open season. 
(i)-(ii) (No change.) 
(iii) <nl>From Thanksgiving Day through the Sunday immediately following 
Thanksgiving Day,<ol>[During the first two days of the general season,] 
antlerless deer may be taken without antlerless deer permits unless MLD or LAMPS 
permits have been issued for the tract of land. If MLD or LAMPS permits have 
been issued, they must be attached to all antlerless deer harvested on the tract 
of land. <nl>From the first Saturday in November through Thanksgiving Day, and 
from the Sunday immediately following Thanksgiving Day through the first Sunday 
in January,<ol>[After the first two days,] antlerless deer may be taken only by 
MLD antlerless deer permits or LAMPS permits. On National Forest, Corps of 
Engineers, Sabine River Authority and Trinity River Authority lands, antlerless 
deer may be taken only by MLD antlerless permits. 
(H) In Austin, Bastrop, Bell (east of Interstate 35), Caldwell, Colorado, Comal 
(east of Interstate 35), Crane, De Witt, Ector, Ellis, Falls, Fannin, Fayette, 
Goliad (north of U.S. Highway 59), Gonzales, Guadalupe, Hays (east of Interstate 
35), Hunt, Jackson (north of U.S. Highway 59), Karnes, Kaufman, Lavaca, Lee, 
Loving, Midland, Milam, Rains, Travis (east of Interstate 35), Upton (that 
portion located north of U.S. Highway 67; and that area located both south of 
U.S. Highway 67 and west of state highway 349), Victoria (north of U.S. Highway 
59), Waller, Ward, Washington, Wharton (north of U.S. Highway 59), Williamson 
(east of Interstate 35), and Wilson counties, there is a general open season. 
(i)-(iii) (No change.) 
<nl>(iv)<ol> <nl> Special Requirement: In Austin, Colorado, Fayette, and Lavaca 
counties, the take of buck deer is limited to bucks having at least eight antler 
points and spike bucks having at least one antler of at least four inches in 
length. <ol>
(5) In Angelina, Chambers, Hardin, Jasper, Jefferson, Liberty, Montgomery, 
Newton, Orange, Polk, and Tyler counties, there is a general open season. 
(A) (No change.) 
(B) Bag limit: <nl>four<ol>[three] deer, no more than two bucks and no more than 
two antlerless. 
(C) (No change.) 
(6) In Andrews, Bailey, Castro, Cochran, Collin, [Dallam,] Dallas, Dawson, Deaf 
Smith, El Paso, Gaines, Galveston, Grayson (except on the Hagerman National 
Wildlife Refuge), Hale, Hockley, Hudspeth, Lamb, Lubbock, Lynn, Martin, Parmer, 
Rockwall, [Sherman,]Terry, Winkler, and Yoakum counties, there is no general 
open season. 
(7) (No change.) 
(8) Muzzleloader-only open seasons, and bag and possession limits shall be as 
follows. 
(A) In Bandera, Bexar, Blanco, Brewster, Brown, Burnet, Coke, Coleman, Comal 
(west of Interstate 35), Concho, Crockett, Culberson, Edwards, Gillespie, 
Glasscock, Hays (west of Interstate 35), Howard, Irion, Jeff Davis, Kendall, 
Kerr, Kimble, Kinney (north of U.S. Highway 90), Llano, Mason, Medina (north of 
U.S. Highway 90), Menard, McCulloch, Mills, Mitchell, Nolan, Pecos, Presidio, 
Reagan, Real, Reeves, Runnels, San Saba, Schleicher, Sterling, Sutton, Terrell, 
Tom Green, Travis (west of Interstate 35), Upton (that portion located both 
south of U.S. Highway 67 and east of state highway 349), Uvalde (north of U.S. 
Highway 90), and Val Verde (north of U.S. Highway 90; and that portion located 
both south of U.S. Highway 90 and west of Spur 239) counties, there is an open 
season during which only antlerless <nl>and spike-buck<ol> deer may be taken 
only with a muzzleloader. 
(B) (No change.) 
(C) Bag limit: four antlerless <nl>or spike-buck<ol> deer <nl> in the aggregate, 
no more than two of which may be spike bucks<ol>. 
(9) Special Youth-Only Season. 
(A) There shall be a special youth-only general hunting season in all counties 
where there is a general open season. 
(i) (No change.) 
(ii) bag limits, provisions for the take of antlerless deer, and special 
requirements: as specified for <nl>the first two days of the general season in 
the<ol> individual counties in paragraphs (1)-(6) of this subsection.
(B) (No change.) 
(c) Mule deer. The open seasons and annual bag limits for mule deer shall be as 
follows. 
(1)-(2) (No change.) 
(3) In <nl>Andrews (west of U.S. Highway 385),<ol> Bailey, Hockley, Lamb, Terry, 
and Yoakum counties, there is a general open season. 
(A)-(C) (No change.) 
(4)-(5) (No change.)

sec.65.46. Squirrel: Open Seasons, Bag, and Possession Limits.
(a) (No change.) 
(b) In Anderson, Angelina, Bowie, Camp, Cass, Chambers, Cherokee, Delta, Fannin, 
Franklin, Freestone, Galveston, Gregg, Hardin, Harris, Harrison, Henderson, 
Hopkins, Houston, Hunt, Jasper, Jefferson, Lamar, Leon, Liberty, Limestone, 
Marion, Montgomery, Morris, Nacogdoches, Navarro, Newton, Orange, Panola, Polk, 
Rains, Red River, Robertson, Rusk, Sabine, San Augustine, San Jacinto, Shelby, 
Smith, Titus, Trinity, Tyler, Upshur, Van Zandt, Walker, and Wood counties, 
there is a general open season for squirrel. 
(1) Open season: May 1 - May 31 and October 1 <nl>through the first Sunday in 
February<ol> [- January 15]. 
(2)-(3) (No change.) 
(c)-(d) (No change.)

sec.65.54. Game Birds: Open Seasons and Bag Limits.
<nl>Except as provided in Subchapter K of this chapter (relating to Raptor 
Proclamation, it<ol>[It] is unlawful to hunt a game bird at any time other than 
during the open seasons provided in this chapter, or to take more than the daily 
bag limits, or to have in possession a game bird taken at any time other than 
during the open seasons. On the first day of any open season the possession 
limit is the same as the daily bag limit. 
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 March 2, 1998.
TRD-9803021
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

31 TAC sec.65.50, sec.65.52
(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 Parks and 
Wildlife or in the Texas Register office, Room 245, James Earl Rudder Building, 
1019 Brazos Street, Austin.)
The repeals and amendments are proposed under Parks and Wildlife Code, Chapter 
61, Uniform Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which 
provides the Commission with authority to establish wildlife resource 
regulations for this state. 
The repeals affect Parks and Wildlife Code, Chapter 61. 
sec.65.50. Elk: Open seasons and annual bag limits.
sec.65.52. Aoudad Sheep: Open seasons and annual bag limits.
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 March 2, 1998.
TRD-9803019
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

Division 3. Seasons and Bag Limits-Fishing Provisions
31 TAC sec.65.71, sec.65.72
The amendments are proposed under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
Commission with authority to establish wildlife resource regulations for this 
state. 
The amendments affect Parks and Wildlife Code, Chapter 61. 

sec.65.71.Reservoir Boundaries. 
Reservoir boundaries for daily bag, possession, and length limits.
(1)-(12) (No change.) 
(13) Lake O'the Pines in Camp, Marion, Morris, and Upshur counties comprises all 
impounded waters of Big Cypress Creek from Ferrell's Bridge dam (the Lake O'the 
Pines dam) upstream to U.S. Highway 259 bridge <nl> and Big Cypress Creek from 
Ferrell's Bridge dam downstream to Ferrell's Bridge crossing<ol>. 
(14) (No change.) 
<nl>(15)<ol> <nl> Lake Pat Mayse in Lamar County comprises all impounded waters 
of Sanders Creek from Pat Mayse Lake Dam upstream to County Road 35610 and 
Sanders Creek from Pat Mayse Lake Dam downstream to F.M. Road 197. <ol>
<nl>(16)<ol>[(15)] Lake Somerville in Burleson, Lee, Milam, and Washington 
counties comprises all impounded waters of Yegua, East Yegua, and Middle Yegua 
Creeks upstream from the Lake Somerville dam.
<nl>(17)<ol>[(16)] Lake Travis in Burnet and Travis counties comprises all 
impounded waters of the Colorado River from the Mansfield dam (Lake Travis dam) 
upstream to the Max Starcke dam (Lake Marble Falls dam) including the Pedernales 
River upstream to the Hammetts Crossing-Hamilton Pool Road bridge. 
<nl>(18)<ol>[(17)] Purtis Creek State Park Lake in Henderson and Van Zandt 
counties comprises all waters within the Purtis Creek State Park boundaries.

sec.65.72. Fish. 
(a) (No change.) 
(b) Bag, possession, and length limits. 
(1) (No change.) 
(2) There are no bag, possession, or length limits on game or non-game fish, 
except as provided in these rules. 
(A) (No change.) 
(B) Statewide daily bag and length limits shall be as follows:
Figure 1: 31 TAC sec.65.72(b)(2)(B) 
(C) Exceptions to statewide daily bag, possession, and length limits shall be as 
follows: 
(i) The following is a figure: 
Figure 2: 31 TAC sec.65.72(b)(2)(C)(i) 
(ii) (No change.) 
(c) Devices, means and methods. 
(1)-(4) (No change.) 
(5) Device restrictions. 
(A)-(D) (No change.) 
(E) Jugline. For use in fresh water only. Non-game fish, channel catfish, blue 
catfish and flathead catfish may be taken with a jugline. It is unlawful to use 
a jugline: 
(i)-(iii) (No change.) 
(iv) in Lake Bastrop in Bastrop County, [Bell StreetLake in Tom Green County,] 
Bellwood Lake in Smith County, Lake Bryan in Brazos County, Boerne City Park 
Lake in Kendall County, Dixieland Reservoir in Cameron County, [and] Gibbons 
Creek Reservoir in Grimes County<nl> , and Tankersley Reservoir in Titus 
County<ol>. 
(F) Lawful archery equipment. Only non-game fish may be taken with lawful 
archery equipment <nl>or crossbow<ol>. 
(G)-(H) (No change.) 
(I) Pole and line. 
(i) (No change.) 
(ii) Game and non-game fish may be taken by pole and line, except that in the 
Guadalupe River in Comal County from the second bridge crossing on River Road 
upstream to the easternmost bridge crossing on F.M. Road 306, rainbow and brown 
trout may not be retained when taken by any method except artificial lures. 
Artificial lures cannot contain or have attached either whole or portions, 
living or dead, of organisms such as fish, crayfish, insects (grubs, larvae, or 
adults), or worms, or any other animal or vegetable material, or synthetic 
scented materials. <nl>This does not prohibit the use of artificial lures that 
contain components of hair or feathers.<ol> It is an offense to possess rainbow 
and brown trout while fishing with any other device in that part of the 
Guadalupe River defined in this paragraph.
(J)-(O) (No change.) 
(P) Throwline. For use in fresh water only. 
(i) (No change.) 
(ii) It is unlawful to use a throwline in Lake Bastrop in Bastrop County, [Bell 
Street Lake in Tom Green County,] Bellwood Lake in Smith County, Lake Bryan in 
Brazos County, Boerne City Park Lake in Kendall County, Dixieland Reservoir in 
Cameron County, [and] Gibbons Creek Reservoir in Grimes County<nl>, and 
Tankersley Reservoir in Titus County<ol>. 
(Q) Trotline. 
(i)-(ii) (No change.) 
(iii) In fresh water, it is unlawful to use a trotline: 
(I) (No change.) 
(II) in Gibbons Creek Reservoir in Grimes County, Lake Bastrop in Bastrop 
County, Fayette County Reservoir in Fayette County, Pinkston Reservoir in Shelby 
County, Lake Bryan in Brazos County, Bellwood Lake in Smith County, Dixieland 
Reservoir in Cameron County, [Bell Street Lake in Tom Green County, and] Boerne 
City Park Lake in Kendall County<nl>, and Tankersley Reservoir in Titus 
County<ol>. 
(iv) (No change.) 
(R) (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 March 2, 1998.
TRD-9803020
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

SUBCHAPTER H.Public Lands Proclamation
31 TAC sec.sec.65.190, 65.193, 65.200
The Texas Parks and Wildlife Department proposes amendments to sec.sec.65.190, 
65.193, and 65.200, concerning Public Lands Proclamation. The amendment to 
sec.65.190 adds, deletes, or renames various units of the public hunting system, 
and provides an access fee for equestrians to areas leased from the U.S. Army 
Corps of Engineers. The amendment is necessary to maintain a current and 
accurate list of wildlife management areas and public hunting lands to which the 
provisions of Subchapter H apply, and to provide additional opportunity for 
recreational use of public lands. The amendment to sec.65.193 adds a reference 
to crossbows, expands the list of species that may be hunted during an extended 
hunt, and requires an access permit for equestrians on areas leased from the 
U.S. Army Corps of Engineers. The amendment is necessary to implement provisions 
of House Bill 2542, Acts of the 75th Texas Legislature and to pursue Commission 
policy by offering increased hunting and recreational opportunity wherever 
possible. The amendment to sec.65.200 deletes the 24-hour limitation on the 
emplacement of temporary blinds on certain wildlife management areas. The 
amendment is necessary to standardize the time limits for the emplacement of 
temporary blinds on all wildlife management areas where they are permitted. 
Robert Macdonald, Wildlife Division regulations coordinator, has determined that 
for each of the first five years that the proposed rules are in effect, there 
will be no fiscal implications to state or local governments as a result of 
enforcing or administering the proposed amendment. 
Mr. Macdonald also has determined that for each of the first five years the 
amendment and new rule as proposed are in effect, the public benefit anticipated 
as a result of enforcing the rules as proposed will be an accurate and current 
list of public hunting areas and wildlife management areas on which the 
provisions of Subchapter H apply, increased recreational opportunity for users 
of the public hunting system, and uniformity in the regulations governing the 
emplacement of temporary blinds on public lands. 
There will be no effect on small businesses. There are no additional economic 
costs to persons required to comply with the rules as proposed. 
The department has not filed a local impact statement with the Texas Workforce 
Commission as required by Government Code, sec.2001.022, as this agency has 
determined that the rules as proposed will not impact local economies. The 
department has determined that there will not be a taking of private real 
property, as defined by Government Code, Chapter 2007, as a result of the 
proposed rules. 
Comments on the proposed rules may be submitted to Herb Kothmann, Texas Parks 
and Wildlife Department, 4200 Smith School Road, Austin, Texas 78744; (512) 389-
4770 or 1-800-792-1112. 
The amendments are proposed under Parks and Wildlife Code, Chapter 81, 
Subchapter E, which provides the Parks and Wildlife Commission with authority to 
establish an open season on wildlife management areas and public hunting lands 
and authorizes the executive director to regulate numbers, means, methods, and 
conditions for taking wildlife resources on wildlife management areas and public 
hunting lands; Chapter 12, Subchapter A, which provides that a tract of land 
purchased primarily for a purpose authorized by the code may be used for any 
authorized function of the department if the commission determines that multiple 
use is the best utilization of the land's resources; and Chapter 62, Subchapter 
D, which provides authority, as sound biological management practices warrant, 
to prescribe seasons, number, size, kind, and sex and the means and method of 
taking any wildlife. 
The amendments affect Parks and Wildlife Code, Chapter 81, Subchapter E; Chapter 
12, Subchapter A; and Chapter 62, Subchapter D. 

sec.65.190. Application.
(a)-(b) (No change.) 
(c) On U.S. Army Corps of Engineer Lands designated as public hunting lands 
(Aquilla, Cooper, [Cypress Creek,] Dam B, Granger, Pat Mayse, Ray Roberts, 
Somerville, and White Oak Creek WMAs), persons other than hunters <nl>and 
equestrian users<ol> are exempt from requirements for an access permit. 
(d) (No change.) 
(e) Public hunting lands include, but are not limited to, the following: 
(1)-(7) (No change.)
[(8) Blue Elbow Swamp WMA (Unit 712);
<nl>(8)<ol>[(9)] Caddo Lake State Park and WMA (Unit 730); 
<nl>(9)<ol>[(10)] Caddo <nl>National Grasslands<ol> WMA (Unit 901); 
<nl>(10)<ol>[(11)] Candy Abshier WMA; 
<nl>(11)<ol>[(12)] Cedar Creek Islands WMA (includes Big Island, Bird Island, 
and Telfair Island Units); 
<nl>(12)<ol>[(13)] Chaparral WMA (Unit 700); 
[(14) Cleavenger Tract (Unit 617);]
<nl>(13)<ol>[(15)] Cooper WMA (Unit 731);
<nl>(14)<ol> <nl> D.R. Wintermann WMA; <ol>
<nl>(15)<ol>[(16)] Dam B WMA - includes Angelina-Neches Scientific Area (Unit 
707); 
<nl>(16)<ol>[(17)] Designated Units of the Las Palomas WMA; 
<nl>(17)<ol>[(18)] Designated Units of Pubic Hunting Lands Under Short-Term 
Lease; 
<nl>(18)<ol>[(19)] Designated Units of the Playa Lakes WMA; 
<nl>(19)<ol>[(20)] Designated Units of the State Park System; 
<nl>(20)<ol>[(21)] Elephant Mountain WMA (Unit 725);
<nl>(21)<ol>[(22)] Gene Howe WMA (Unit 755) -includes Pat Murphy Unit (Unit 
706); 
<nl>(22)<ol>[(23)] Granger WMA (Unit 709);
<nl>(23)<ol>[(24)] Guadalupe Delta WMA (Unit 729) <nl>- includes Mission Lake 
Unit (720), Guadalupe River Unit (723), Hynes Bay Unit (724), and San Antonio 
River Unit (760)<ol> 
<nl>(24)<ol>[(25)] Gus Engeling WMA (Unit 754); 
<nl>(25)<ol>[(26)] James Daughtrey WMA (Unit 713); 
<nl>(26)<ol>[(27)] J. D. Murphree WMA (Unit 783); 
<nl>(27)<ol>[(28)] Keechi Creek WMA (Unit 726); 
<nl>(28)<ol>[(29)] Kerr WMA (Unit 756);
[(30) Lands Within a Desert Bighorn Sheep Cooperative Unit;] 
<nl>(29)<ol>[(31)] Lower Neches WMA (Unit 728)<nl> - includes Old River Unit and 
Nelda Stark Unit<ol>; 
<nl>(30)<ol>[(32)] Mad Island WMA (Unit 729) [- includes Matagorda Peninsula 
Unit (Unit P150)]; 
<nl>(31)<ol><nl> Mason Mountain WMA; <ol>
<nl>(32)<ol>[(33)] Matador WMA (Unit 702);
<nl>(33)<ol>[(34)] Matagorda Island State Park and WMA (Unit <nl>8134<ol> 
[722]); 
<nl>(34)<ol>[(35)] M. O. Neasloney WMA;
<nl>(35)<ol>[(36)] Moore Plantation WMA (Unit 902); 
<nl>(36)<ol>[(37)] North Toledo Bend WMA (Unit 615); 
<nl>(37)<ol>[(38)] Old Sabine Bottom WMA (Unit 732); 
<nl>(38)<ol>[(39)] Old Tunnel WMA; 
<nl>(39)<ol>[(40)] Pat Mayse WMA (Unit 705); 
<nl>(40)<ol>[(41)] Peach Point WMA (Unit 721) -includes Bryan Beach Unit (Unit 
<nl>8075<ol> [P075]);
<nl>(41)<ol>[(42)] Ray Roberts WMA (Unit 501); 
<nl>(42)<ol> <nl> Redhead Pond WMA; <ol>
(43) Richland Creek WMA (Unit 703); 
(44) Sam Houston National Forest WMA (Unit 905); 
[(45) Sheldon State Park and WMA (Unit 716);] 
<nl>(45)<ol>[(46)] Sierra Diablo WMA (Unit 767); 
<nl>(46)<ol>[(47)] Somerville WMA (Unit 711); 
<nl>(47)<ol>[(48)] Tawakoni WMA (Unit 708);
<nl>(48)<ol>[(49)] Walter Buck WMA (Unit 757); 
<nl>(49)<ol> <nl> Welder Flats WMA; <ol>
(50) White Oak Creek WMA (Unit 727); and 
(51) Other numbered units of public hunting lands.

sec.65.193.Access Permit Required and Fees. 
(a)-(b) (No change.) 
(c) Annual Public Hunting (APH) Permit and Limited Public Use (LPU) Permit. 
(1)-(2) (No change.) 
(3) The APH permit is required of each person 17 years of age or older who 
enters the Alabama Creek, Bannister, Caddo, Moore Plantation, or Sam Houston 
National Forest WMAs and possesses a centerfire or muzzleloading rifle or 
handgun, a shotgun with shot larger than #4 lead, or lawful archery equipment 
<nl>or crossbow<ol> with broadhead hunting point; however, a person 17 years of 
age or older may enter these units with other legal devices for hunting as 
defined in this subchapter and take specified legal wildlife resources provided 
the person possesses a LPU permit. 
(4) The permits required under paragraphs (1) - (3) of this subsection are not 
required for: 
(A) persons who enter on United States Forest Service lands designated as a 
public hunting area (Alabama Creek, Bannister, Caddo, Moore Plantation, and Sam 
Houston National Forest WMAs) or any portion of Units 902 and 903 for any 
purpose other than hunting; [or] 
(B) persons who enter on U.S. Army Corps of Engineers lands (Aquilla, Cooper, 
[Cypress Creek], Dam B, Granger, Pat Mayse, Ray Roberts, Somerville, and White 
Oak Creek WMAs) designated as public hunting lands for purposes other than 
hunting <nl>or equestrian use; or<ol>
[<nl>(C)<ol> <nl>persons who enter Caddo Lake State Park and Wildlife Management 
Area and do not hunt or enter upon the land. <ol>
(5)-(6) (No change.) 
(d)-(i) (No change.) 
(j) The fees for special and regular permits <nl>for hunting deer, exotic 
mammal, pronghorn antelope, javelina, turkey, coyote, and alligator <ol> are: 
(1) <nl>standard period<ol> [deer, exotic mammal, pronghorn antelope, javelina, 
turkey, coyote, alligator] - $50; 
(2) [deer, exotic mammal, alligator -]extended period - $100; 
(3)-(4) (No change.) 
(k)-(o) (No change.)

sec.65.200.Construction of Blinds.
(a) (No change.) 
(b) The use of temporary blinds is permitted only if such structures are not: 
(1) (No change.) 
(2) emplaced longer than 72 hours [(24 hours maximum on the Alabama Creek, 
Bannister, Caddo, Moore Plantation, and Sam Houston National Forest WMAs)]; or 
(3) (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 March 2, 1998.
TRD-9803022
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4775

SUBCHAPTER A.Statewide Hunting and Fishing Proclamation
Division 3. Seasons and Bag Limits; Fishing Provisions
31 TAC sec.65.78
The Texas Parks and Wildlife Department proposes an amendment to sec.65.78, 
concerning Crabs and Ghost Shrimp. Responsibility for establishing seasons, bag 
limits, means and methods for taking wildlife resources is delegated to the 
Texas Parks and Wildlife Commission under Parks and Wildlife Code, Chapter 61, 
Uniform Wildlife Regulatory Act (Wildlife Conservation Act of 1983). 
The proposed change adds language "for bait purposes only" to the 5.0% tolerance 
limit regarding possession of undersize crabs; establishes new provisions for 
marking commercial crab traps and crab lines, and adds the option of using 
untreated steel wire (20-gauge or smaller) in place of jute or sisal twine, or 
using a hinged door over a cut out in a crab trap, as requirements for equipping 
crab traps with degradable panels. 
Following implementation of the degradable panel rules in September 1997, 
industry members recommended testing some form of degradable wire as an 
alternative method of installing degradable panels in their traps. Department 
testing indicates that untreated steel wire of 20-gauge or smaller would 
alleviate the crab fishermen's concerns while still providing for an adequate 
degradable panel. Additionally, a hinged "door" installed over the degradable 
panel opening is currently in use by some crab fishermen. Its design meets the 
requirements of a degradable panel. New language allows for this option to be 
used by crab fishermen in their traps. The degradable panel portion of the 
proclamation is recommended to be effective as soon as possible after adoption 
by the Commission. Theft of traps and crabs from traps has been a significant 
and persistent concern of commercial crab fishermen. Passage of House Bill 2542 
by the 75th Texas Legislature, which authorizes the Texas Parks and Wildlife 
Commission to establish a license limitation system for the commercial crab 
fishery, including creation of a commercial crab fisherman's license, provided 
the opportunity to develop an effective marking system that would minimize the 
opportunity for theft while enhancing law enforcement. This marking systemas 
proposed links directly to establishment of a commercial crab fishermen's 
license and was approved by the industry work group which helped develop the 
license limitation package. In addition, to minimize the opportunity for theft, 
the new rules establish that traps or crab lines marked by a commercial crab 
fisherman's license plate number may be run only by an individual in a boat 
bearing the same commercial crab fisherman's license plate number. Addition of 
the restriction requiring the 5.0% tolerance of undersize crabs to be used for 
bait purposes only, clarifies the original intent of the 5.0% tolerance 
provision. 
Robin Riechers, staff economist, has determined that for each of the first five 
years that the rules as proposed are in effect, there will be no additional 
fiscal implications to state or local governments as a result of enforcing or 
administering the rules. 
Mr. Riechers also has determined that for each of the first five years the rules 
as proposed are in effect the public benefit anticipated as a result of 
administering the rule as proposed will be the development of a more efficient 
and economically stable crabbing industry, thus maximizing the social and 
economic benefits to the state. 
There will be some effects on small businesses and individuals required to 
comply with the new rule. These may be additional costs associated with the 
license fees, gear modifications, and other program aspects, but in the long-
term both individual efficiency and profits should rise as stock abundance 
increases. 
License Fees: The legislatively mandated fees for a newly established commercial 
crab fisherman's license will have positive economic impacts on crab fishers 
whose past annual license(s) and crab trap tag expenditures exceed the cost of 
the new license fee and will have negative impacts on those crab fishers whose 
past annual license(s) and crab trap tag expenditures did not exceed the cost of 
the new license fee. The distribution of these types of crab fishers is not 
known.
Commercial Crab Fishing Gear Marking: There will be some minimal costs 
associated with individuals complying with the new gear marking requirements. 
However, since the marking requirements will enhance enforcement, thereby 
reducing the opportunity for theft of traps nd crabs, there will be positive 
economic benefits due to a reduction in lost or stolen gear and crabs. 
Degradable Panel Options: There will be some small costs associated with 
individuals complying with the new degradable panel options. The new options 
should, however, minimize reported premature degradation of the panel using the 
twine option, thereby reducing premature loss of crabs from actively fishing 
traps. 
The department has not filed a local impact statement with the Texas Employment 
Commission as required by the Administrative Procedures Act, Government Code, 
sec.2001.022, as the agency has determined that the rule as proposed will not 
impact local economies. 
Comments on the proposed rule may be submitted to Paul Hammerschmidt, Coastal 
Fisheries Division, Texas Parks and Wildlife Department, 4200 Smith School Road, 
Austin, Texas 78744; (512) 389-4650 or 1-800-792-1112 extension 4650.
The amendment is proposed under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
commission with authority to establish wildlife resource regulations for this 
state. 
The amendment will affect Parks and Wildlife Code, Chapter 61. 

sec.65.78. Crabs and Ghost Shrimp.
(a) Bag, possession and size limits. 
(1)-(2) (No change.) 
(3) It is unlawful to: 
(A) (No change.) 
(B) possess blue crabs less than five inches in width, (measured across the 
widest point of the body from tip of spine to tip of spine) except that not more 
than 5.0%, by number, of undersized crabs may be possessed <nl> for bait 
purposes only,<ol> if placed in a separate container at the time of taking; 
(C)-(F) (No change.) 
(b)-(c) (No change.) 
(d) Devices, means and methods. 
(1) (No change.)
(2) Only the following means and methods may be used for taking crabs: 
(A) Crab line. <nl>It is unlawful to fish a crab line for commercial purposes 
that is not marked with a floating white buoy not less than six inches in 
height, six inches in length and six inches in width bearing the commercial crab 
fisherman's license plate number in letters of a contrasting color at least two 
inches high attached to the end fixtures.<ol> 
(B) Crab trap. It is unlawful to: 
(i)-(iii) (No change.) 
(iv) fish a crab trap that: 
(I)-(II) (No change.) 
(III) is not equipped with a degradable panel. A trap shall be considered to 
have a degradable panel if one of the following methods is used in construction 
of the trap: 
(-a-) the trap lid tie-down strap is secured to the trap [at one end] by a 
[simple] loop of untreated jute twine (comparable to Lehigh brand # 530) or 
sisal twine (comparable to Lehigh brand #390). The trap lid must be secured so 
that when the twine degrades, the lid will no longer be securely closed; or 
<nl>(-b-)<ol> <nl> the trap lid tie-down strap is secured to the trap by a loop 
of untreated steel wire with a diameter of no larger than 20 gauge. The trap lid 
must be secured so that when the wire degrades, the lid will no longer be 
securely closed; or <ol>
<nl>(-c-)<ol>[(-b-)] the trap contains at least one sidewall, not including the 
bottom panel, with a rectangular opening no smaller [in either dimension] than 
three inches by six inches. Any obstruction placed in this opening may not be 
secured in any manner except<nl>:<ol>
<nl>(-1-)<ol> it may be laced, sewn, or otherwise obstructed by a single length 
of untreated jute twine (comparable to Lehigh brand #530) or sisal twine 
(comparable to Lehigh brand #390) knotted only at each end and not tied or 
looped more than once around a single mesh bar. When the twine degrades, the 
opening in the sidewall of the trap will no longer be obstructed[.]<nl>; or<ol> 
<nl>(-2-)<ol> <nl> it may be laced, sewn, or otherwise obstructed by a single 
length of untreated steel wire with a diameter of no larger than 20 gauge. When 
the wire degrades, the opening in the sidewall of the trap will no longer be 
obstructed; or <ol>
<nl>(-3-)<ol> <nl> the obstruction may be loosely hinged at the bottom of the 
opening by no more than two untreated steel hog rings and secured at the top of 
the obstruction in no more than one place by a single length of untreated jute 
twine (comparable to Lehigh brand # 530), sisal twine (comparable to Lehigh 
brand # 390), or by a single length of untreated steel wire with a diameter of 
no larger than 20 gauge. When the twine or wire degrades, the obstruction will 
hinge downward and the opening in the sidewall of the trap will no longer be 
obstructed. <ol>
(v) (No change.)
<nl>(vi)<ol> <nl> fish a crab trap for commercial purposes that is not marked 
with a floating white buoy bearing the commercial crab fisherman's license plate 
number in letters of a contrasting color at least two inches high attached to 
the crab trap; <ol>
<nl>(vii)<ol> <nl>fish a crab trap that is marked with a buoy bearing a 
commercial crab fisherman's license plate number other than the commercial crab 
fisherman's license plate number displayed on the crab fishing boat; <ol>
<nl>(viii)<ol> [(vi)] fish a crab trap for non-commercial purposes without a 
floating white buoy not less than six inches in height, six inches in length, 
and six inches in width, bearing a two-inch wide center stripe of contrasting 
color, attached to the crab trap; 
<nl>(ix)<ol> [(vii)] fish a crab trap in public salt waters without a valid gear 
tag. Gear tags <nl>must be attached within 6 inches of the buoy and<ol> are 
valid for 30 days after date set out. 
<nl>(x)<ol> [(viii)] fish a crab trap within 200 feet of a marked navigable 
channel in Aransas County; and in the water area of Aransas Bay within one-half 
mile of a line from Hail Point on the Lamar Peninsula, then direct to the 
eastern end of Goose Island, then along the southern shore of Goose Island, then 
along the eastern shoreline of the Live Oak Peninsula past the town of Fulton, 
past Nine Mile Point, past the town of Rockport to a point at the east end of 
Talley Island including that part of Copano Bay within 1,000 feet of the 
causeway between Lamar Peninsula and Live Oak Peninsula or possess, use or place 
more than three crab traps in waters north and west of Highway 146 where it 
crosses the Houston Ship Channel in Harris County; 
<nl>(xi)<ol>[(ix)] remove crab traps from the water or remove crabs from crab 
traps during the period from 30 minutes after sunset to 30 minutes before 
sunrise; 
<nl>(xii)<ol>[(x)] place a crab trap or portion thereof closer than 100 feet 
from any other crab trap, except when traps are secured to a pier or dock;
<nl>(xiii)<ol>[(xi)] fish a crab trap in public waters that is marked with a 
buoy made of a plastic bottle(s) of any color or size; or 
<nl>(xiv)<ol>[(xii)] use or place more than three crab traps in public waters of 
the San Bernard River north of a line marked by the boat access channel at 
Bernard Acres.
(C)-(D) (No change.) 
<nl>(e)<ol> <nl> Effective Dates. The provisions of subsections (a)-(c), (d)(1)-
(d)(2)(B)(iv)(II), and (d)(2)(B)(v)-(d)(2)(B)(xiv), above shall take effect 
September 1, 1998. <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 February 25, 1998.
TRD-9802750
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4642

CHAPTER 69.Resource Protection
SUBCHAPTER F.Health Certification of Native Shellfish
31 TAC sec.69.75, sec.69.77
The Parks and Wildlife Department proposes new sec.69.75 and sec.69.77, 
concerning Health Certification of Native Shellfish. Proposed new sec.69.75 
proposes definitions for the terms "certified inspector," "manifestations of 
disease," "disease," "disease-free," "private facility," "quarantine condition," 
"waste" and "water in the state." Proposed new sec.69.77 requires persons in 
possession of native penaeid shrimp for aquaculture or scientific research 
purposes to quarantine their facility if they observe manifestations of disease. 
It also allows such persons to choose between requesting an inspection from a 
"certified inspector" or submitting samples of shrimp.
Robin Riechers, staff economist, has determined that during the first five years 
these sections as proposed are in effect there will be fiscal implications to 
state government as a result of administering and enforcing the sections. 
However, the extent of this effect is not determinable at this time. There will 
be no fiscal implications for units of local government. 
Mr. Riechers also has determined that for the first five years these sections as 
proposed are in effect The public benefit anticipated as a result of enforcement 
of and compliance with the sections will be increased protection of aquatic 
animal life from depletion due to disease. 
The rules as proposed will not have an adverse economic impact on small 
businesses or individuals because currently there are no small businesses or 
individual aquaculturiest deriving a significant portion of their income from 
the culture of native penaeid shrimp. 
TPWD has not filed a local impact statement with the Texas Employment Commission 
as this agency has determined that the sections as proposed will not impact 
local economies. 
A Takings Impact Assessment was performed for these rules pursuant to the 
requirements of Government Code, sec.2007.043. The stated purpose of these rules 
is to protect wild native populations of shellfish from depletion due to disease 
introduced by cultured stocks. Promulgation and enforcement of these will not 
place a burden on private real property because they do not restrict or limit a 
right that would otherwise exist in the absence of the rules. 
Written comments on the proposed rules may be submitted to Joedy Gray, Inland 
Fisheries Division, Texas Parks and Wildlife Department, 4200 Smith School Road, 
Austin, Texas 78744. Comments may also be faxed to Mr. Gray at (512) 389-4388. 
Written or faxed comments must be received no later than 5:00 p.m., Monday, 
April 13, 1998 in order to be considered. 
These new sections are proposed under Chapters 61 and 77 of the Texas Parks and 
Wildlife Code. Section 61.052(b) of the Texas Parks and Wildlife Code provides 
the Commission with the power to regulate the means, methods and places in which 
it is lawful to possess aquatic animal life, sec.61.055 authorizes the 
Commission to amend its proclamations to prevent depletion of aquatic animal 
life or at any time it finds the facts warrant a change, and sec.77.007 
authorizes the Commission to regulate the possession of shrimp.
The proposed amendments affect Texas Parks and Wildlife Code sec.61.052, 61.055 
and 77.007. 

sec.69.75. Definitions. 
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
(1) Certified inspector - An employee of the Texas Parks and Wildlife Department 
or the Texas A&M Sea Grant College Program who has satisfactorily completed a 
department approved course in clinical analysis.
(2) Disease - contagious pathogens or injurious parasites which may be a threat 
to the health of natural populations of aquatic organisms.
(3) Disease-Free - a status based on the results of an examination conducted by 
a department approved shellfish disease specialist that certifies a group of 
aquatic organisms as being free of disease. 
(4) Manifestations of disease - manifestations of disease include, but are not 
limited to, one or more of the following: heavy or unusual predator activity, 
empty guts, emaciation, rostral deformity, digestive gland atrophy or necrosis, 
gross pathology of shell or underlying skin typical of viral infection, fragile 
or atypically soft shell, gill fouling, or gill discoloration.
(5) Private facility - a pond, tank, cage or other structure capable of holding 
native shellfish in confinement wholly within or on private land or water or 
wholly within or on permitted public land or water. 
(6) Quarantine condition - confinement of native penaeid shrimp such that 
neither the shrimp nor the water in which they are or were maintained comes into 
contact with other fish or shellfish. 
(7) Waste - waste shall have the same meaning as in Chapter 26, sec.26.001(6) of 
the Texas Water Code. 
(8) Water in the state - water in the state shall have the same meaning as in 
Chapter 26, sec.26.001(5) of the Texas Water Code.

sec.69.77. Health Certification of Native Shellfish.
(a) Any person in possession of native penaeid shrimp stocks held on a private 
facility for the purpose of aquaculture or scientific research and who observes 
one or more manifestations of disease shall: 
(1) immediately quarantine the private facility, notify the department and 
request an inspection from a department certified inspector; or 
(2) immediately quarantine the private facility, notify the department and 
submit samples of the affected shrimp to a department approved disease 
specialist for analysis. Results of the required analyses shall be forwarded to 
the department immediately upon receipt. 
(b) Upon receiving a request from a permit holder under subsection (a), the 
department certified inspector shall inspect the private facility, complete an 
inspection report provided by the department and notify the department and the 
permit holder of the results. 
(c) A private facility quarantined under subsection (a) shall remain under 
quarantine condition until the department removes the quarantine in writing or 
authorizes in writing an appropriate disposal method based on the results of the 
required analyses. 
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 25, 1998.
TRD-9802749
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 389-4642

TITLE 34. PUBLIC FINANCE
PART I. Comptroller of Public Accounts
CHAPTER 9.Property Tax Administration
SUBCHAPTER C.Appraisal District Administration
34 TAC sec.9.415
The Comptroller of Public Accounts proposes an amendment to sec.9.415, 
concerning applications for property tax exemptions. This rule is being amended 
to add a new model form for application for water conservation initiatives 
property tax exemption from Senate Joint Resolution 45, 75th Legislature, 1997, 
effective January 1, 1998. 
Mike Reissig, chief revenue estimator, has determined that for the first five-
year period the rule will be in effect, there will be no fiscal impact on the 
state or units of local government. 
Mr. Reissig also has determined that for each year of the first five years the 
rule is in effect, it would benefit the public by providing them with a new 
application form for property tax exemption allowed for water conservation 
initiatives. There would be no anticipated significant economic cost to the 
public. The rule would have no fiscal implications to small businesses. 
Comments on the proposal may be submitted to Larrilyn K. Reissig, Manager, 
Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528. 
This amendment is proposed under the Tax Code, sec.11.43(f), which requires the 
comptroller to prescribe the contents and form for each kind of property tax 
exemption. 
The amendment implements the Tax Code, sec.sec.11.111, 11.13, 11.17, 11.18, 
11.181, 11.19, 11.20, 11.21, 11.22, 11.23(a)-(k), 11.24, 11.251, 11.27, 11.271, 
11.28, 11.29, 11.30, 11.31, 11.32, 11.437, and 11.182. 

sec.9.415.Applications for Property Tax Exemptions.
(a)-(b) (No change.)
(c) The [amended] model forms in paragraphs <nl>
(1)-(21)<ol> [(1)-(20)] of this <nl>subsection<ol> [section] and the new model 
<nl>form<ol> [forms] in paragraph <nl>(22)<ol> [(21)] of this <nl>subsection<ol> 
[section] are adopted by reference by the Comptroller of Public Accounts. Copies 
of these forms are available for inspection at the office of the Texas Register 
or can be obtained from the Comptroller of Public Accounts, Property Tax 
Division, P.O. Box 13528, Austin, Texas 78711-3528. Copies may also be requested 
by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999. 
From a Telecommunications Device for the Deaf (TDD), call 1-800-248-4099, toll 
free. In Austin, the local TDD number is (512) 463-4621. 
(1)-(19) (No change.)
(20) Application for Cotton Stored in a Warehouse (Form 50-245); [and] 
(21) Application(s) for Community Housing Development Organizations Improving 
Property for Low-Income and Moderate-Income Housing (Form 50-263 and Form 50-
264)<nl>; and<ol> 
<nl>(22)<ol> <nl>Application for Water Conservation Initiatives Property Tax 
Exemption (Form 50- 270). <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 February 26, 1998.
TRD-9802888
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-3699

PART IV. Employees Retirement System of Texas
CHAPTER 85.Flexible Benefits
34 TAC sec.sec.85.1, 85.3, 85.7, 85.9
The Employees Retirement System of Texas proposes amendments to sec.sec.85.1, 
85.3, 85.7, and 85.9, relating to the Flexible Benefits Program. The amendments 
are being proposed to allow participants more opportunities to make mid-term 
changes to their flexible benefits elections and to acknowledge the role of the 
Family and Medical Leave Act. 
William S. Nail, General Counsel, has determined that for the first five-year 
period the rules are in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the rule. 
Mr. Nail also has determined that for each year of the first five years the 
rules are in effect the public benefit anticipated as a result of enforcing the 
rules will be that the Flexible Benefits Program will be enhanced, providing 
more meaningful benefits to state employees. There will be no effect on small 
businesses. There are no anticipated economic costs to persons who are required 
to comply with the rule as proposed. 
Comments on the proposed rules may be submitted to William S. Nail, General 
Counsel, Employees Retirement System of Texas, P. O. Box 13207, Austin, Texas 
78711-3207. 
The amendments are proposed under the Insurance Code, Article 3.50-2, sec.4A, 
which provides the Board of Trustees with the authority to promulgate rules 
consistent with the Code. 
The Insurance Code, Article 3.50-2 is affected by these proposed amendments.

sec.85.1.Introduction and Definitions.
(a) - (b) (No change 
(c) Definitions. The following words and terms when used in this chapter, shall 
have the following meanings, unless the context clearly indicates otherwise, and 
wherever appropriate, the singular includes the plural, the plural includes the 
singular, and the use of any gender includes the other gender. 
(1) - (31) (No change.) 
(32) Spouse - The person to whom the participant is married. Spouse does not 
include a person separated from the participant under a decree of divorce<nl>, 
or annulment<ol>. 
(33) - (35) (No change.) 

sec.85.3.Eligibility and Participation.
(a) (No change.) 
(b) Health care reimbursement plan. 
(1) Eligibility. 
(A) - (B) (No change.) 
(C) An employee whose employment has been terminated, voluntarily or 
involuntarily except for those persons not eligible pursuant to subparagraph (A) 
of this paragraph, and who has health insurance continuation coverage under the 
Public Health Services Act on September 1, may elect to participate in a health 
care reimbursement account during annual enrollment. A formal election must be 
made on a TexFlex election form prior to the beginning of a new plan year. 
Eligibility to participate is contingent upon pre-payment, on a monthly or 
annual basis, of the elected amount, plus a 2[.0]% service charge on the elected 
amount, plus the administrative fee for the plan year. Payments are due on the 
first day of each month and must be received no later than the 30th day of the 
month. Failure to pay will automatically cancel enrollment and future 
eligibility. 
(2) (No change.) 
(3) Duration of participation. 
(A) (No change.) 
(B) An employee returning to active duty from an approved leave of absence 
without pay or transferring from one state agency or institution to another or 
between an agency and an institution of higher education as defined in these 
rules, within the same plan year, must retain the election in existence on the 
last active duty date or the date of transfer for the remainder of the plan 
year<nl>, unless as described in paragraph (3)(D) of this subsection<ol>. 
(C) (No change.) 
<nl>(D)<ol> <nl>Notwithstanding any provision to the contrary in this Plan, if a 
participant goes on a qualifying unpaid leave under the Family and Medical Leave 
Act of 1993 (FMLA), to the extent required by the FMLA, the Plan Administrator 
will continue to maintain the participant's health care reimbursement account on 
the same terms and conditions as though he were still an active employee (i.e., 
the Plan Administrator will continue to provide benefits to the extent the 
employee opts to continue his coverage). If the employee opts to continue his 
coverage, the employee may pay his share of the premium in the same manner as a 
participant on non-FMLA leave, including with after-tax dollars while on leave 
or the employee may be given the option to pre-pay all or a portion of his share 
of the premium for the expected duration of the leave on a pre-tax salary 
reduction basis out of his pre-leave compensation by making a special election 
to that effect prior to the date such compensation would normally be made 
available to him (provided, however, that pre-tax dollars may not be utilized to 
fund coverage during the next plan year). Upon return from such leave, the 
employee will be permitted to reenter the Plan on the same basis the employee 
was participating in the Plan prior to his leave, or as otherwise required by 
the FMLA.<ol> 

sec.85.7.Enrollment.
(a) Election of Benefits. 
(1) - (3) (No change.) 
(4) An election to participate in a reimbursement plan must be for a specified 
dollar amount plus the administrative fee and for eligible terminated employees 
an addition 2[.0]% service charge on the elected amount for continuation 
coverage authorized under the Public Health Service Act. 
(5) (No change.) 
(b) (No change.) 
(c) Benefit election irrevocable except for change in family status. 
(1) An election to participate shall be irrevocable for the plan year unless an 
eligible change in family status occurs. The allowable change in election must 
be consistent with the change in family status event. Documentation, as 
prescribed by the plan administrator, must be submitted in support of the change 
in family status event. 
(A) Health care reimbursement plan. A change in family status includes 
marriage<nl>;<ol> [,] birth<nl>;<ol> [,] adoption<nl>;<ol> [,] <nl>placement for 
adoption;<ol> acquisition of UGIP eligible dependent<nl>;<ol> [or] gaining legal 
custody of a child<nl>; spouse terminates employment or goes from full-time to 
part-time employment status; or spouse or dependent has a decrease or a loss of 
coverage imposed by a third party provider<ol>. An eligible change in family 
status permits a participant to elect to participate or increase election 
amounts consistent with the change in family status event. 
(B) Dependent care reimbursement plan. A change in family status includes 
marriage; divorce; <nl>annulment; <ol> death of spouse <nl> or<ol> 
dependent<nl>;<ol> [,] dependent loses eligibility for UGIP<nl>;<ol> [or] loss 
of legal custody of child; birth, adoption, <nl>placement for adoption;<ol> 
acquisition of UGIP eligible dependent<nl>;<ol> [or] gaining legal custody of a 
child; termination or gaining of employment by a spouse; change from full-time 
to part-time or part-time to full-time employment status by employee or spouse; 
<nl>workshift change by employee or spouse;<ol> [and] spouse goes on or returns 
from leave without pay<nl>; and a significant cost change imposed by a third 
party provider<ol>. An eligible change in family status permits a participant to 
change the election or to increase or decrease the election amount consistent 
with the change in family status event. 
(2) A request to change election may not be made following a pay increase or 
decrease, pay shortage, paid leave, transfer to new agency, institution, or 
location within the same plan year, return to state or institution employment 
from leave with or without pay within the same plan year, financial hardship, 
loss of eligibility for health coverage by a health maintenance organization, or 
change in day care provider<nl>, unless imposed by a third party provider<ol>. 
(3) [Employees who qualify to change elections, subject to other Uniform Group 
Insurance Program provisions, may add coverage, drop coverage, change coverage.] 
Changes will apply prospectively for the remainder of the plan year unless a 
subsequent family status change occurs during the plan year. 
(4) (No change.) 
(d) Payment of flexible benefit dollars. 
(1) Flexible benefit dollars from an active duty participant shall be recovered 
by the State of Texas or institution of higher education through payroll 
withholding at least monthly during the plan year and remitted by the State of 
Texas or institution of higher education to the Employees Retirement System of 
Texas for the purpose of purchasing benefits. For the health care reimbursement 
account only, flexible benefit dollars from employees on leave without pay 
status or who have insufficient funds for any month shall be recovered through 
direct after-tax payment from the participant or upon the return of the employee 
to active duty status from payroll withholding, for the total amount due. 
Terminated or leave without pay employees with health care reimbursement account 
continuation coverage shall remit after-tax dollars, on a monthly basis, 
directly to the Employees Retirement System of Texas for the plan year<nl>, 
except as described in sec.85.3(b)(3)(D) of this title (relating to Eligibility 
and Participation)<ol>. 
(2) - (3) (No change.) 
(e) - (f) (No change.) 

sec.85.9.Payment of Claims from Reimbursement Accounts.
(a) (No change.) 
(b) Reimbursement of <nl>claims to<ol> participants. 
(1) Payment of eligible expenses shall be made directly to the participant by 
the plan administrator. A participant may request payment of a dependent care 
reimbursement plan claim be made directly to a child care provider. 
(2) The plan administrator may establish or waive the minimum payment as deemed 
necessary. 
(3) Reimbursements to participants or dependent care providers shall be made at 
least once each month. 
(4) Dependent care reimbursement shall at no time exceed the balance of the 
participant's account for the plan year, at the time of the reimbursement. 
(5) Health care reimbursement shall at no time exceed the eligible employee's 
election for the eligible period of coverage in the plan year. 
(c) Statements. On or before January 31 of each year, the plan administrator or 
its agent shall furnish to each dependent care reimbursement plan participant a 
statement of account as of the end of the previous calendar year. 
(d) Participant's responsibility. 
(1) An employee or former employee will be held liable for any overpayments of 
benefits as a participant in the reimbursement accounts. The method of repayment 
shall be determined by the plan administrator and until full restitution is made 
by the participant, no further claims payment from any TexFlex accounts will be 
made to the participant by the plan administrator.
(2) A health care reimbursement account participant who goes on leave without 
pay or has insufficient funds during the plan year is liable for the monthly 
health care election amount and must pay for it with after-tax dollars<nl>, 
unless as described in sec.85.3(b)(3)(D) of this title (relating to Eligibility 
and Participation)<ol>. Should the participant fail to contribute to the account 
with after-tax dollars, upon the participant's return to active duty, payroll 
deduction will be required to recover the election amounts due. 
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 26, 1998.
TRD-9802866
Sheila W. Beckett
Executive Director
Employees Retirement System of Texas
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 867-3336

TITLE 37. PUBLIC SAFETY AND CORRECTIONS
PART I. Texas Department of Public Safety
CHAPTER 15. Drivers License Rules
SUBCHAPTER <nl>G. <ol>Denial of Renewal of Driver's
License for Failure to Appear for Traffic Violation
37 TAC sec.sec.15.111, 15.119, 15.120
The Texas Department of Public Safety proposes amendments to sec.sec.15.111, 
15.119, and 15.120, concerning denial of renewal of driver's license for failure 
to appear for a traffic citation. The amendments will clarify when a $30 
administrative fee shall be required (or when the fee may be waived) pursuant to 
Texas Transportation Code, sec.706.006. Texas Transportation Code, Chapter 706, 
authorizes the department to deny renewal of a driver license to an applicant 
who has failed to appear for a hearing on a traffic violation (FTA violator), 
when certain statutory criteria are satisfied. 
Amendment to sec.15.111 reflects the non-substantive changes in statute from 
Texas Civil Statutes to Texas Transportation Code. 
To clear the denial, an FTA violator must pay a fee of $30 to the court where 
the traffic citation is pending, in addition to any other fines or costs 
assessed by the court. However, under certain circumstances, a court may issue a 
clearance report without requiring the $30 fee. A fee shall not be required when 
the person has been acquitted of the underlying traffic offense. The amendment 
to sec.15.119 more clearly defines "acquittal." The court may also waive the fee 
if the court finds that the person had good cause for having originally failed 
to appear. The amendment describes or defines "good cause." The amendment to 
sec.15.120 clarifies that a person who sets or resets a case, or posts security 
for a case for which he or she earlier failed to appear is nevertheless required 
to pay the $30 administrative fee in order to qualify for an FTA clearance 
report. The amendment would also better distinguish between a civil FTA 
violation report submitted to the department and a criminal failure to appear 
charge, by deleting language which refers to a warrant of arrest. 
Tom Haas, Chief of Finance, has determined that for each year of the first five 
year period the rule is in effect there will be some increase in revenue to the 
state's general revenue fund. However, there is insufficient data upon which to 
accurately project the fiscal impact to state government. In addition, there 
will be some fiscal impact on those local governments (cities and counties) 
which contract with the department to implement the FTA program. Local 
governments are expected to benefit from increased compliance by traffic 
violators in their obligation to appear and answer in court for traffic 
violations. Local governments are permitted to retain $10 of the $30 fee imposed 
on persons who violate a promise to appear, however, this fee will be offset by 
a required fee (currently established by contract at $6) paid to a private 
vendor. The proposed rules are expected to increase revenue to local governments 
by reducing the number of cases in which an FTA fee is waived. The department 
has insufficient data on which to estimate the amount of revenue which will be 
generated by the amendment. 
Mr. Haas 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 an increased level of compliance by traffic violators in their 
obligation to appear at a hearing. The anticipated cost to individuals who fail 
to appear and answer at hearing for a traffic violation is the $30 
administrative fee. For individuals who comply with a promise to appear for a 
traffic violation, there is no anticipated cost. There is no anticipated 
economic costs to small or large businesses. 
Comments on the proposal may be submitted to David M. Douglas, Assistant Chief 
of Legal Services, Texas Department of Public Safety, Box 4087, Austin, Texas 
78773-0140, (512) 424-2890. 
The amendments are proposed pursuant to Texas Transportation Code, sec.706.012, 
which authorizes the department to adopt rules to implement this chapter; and 
pursuant to Texas Government Code, sec.411.006(4), which authorizes the director 
of the Department of Public Safety to adopt rules, subject to approval of the 
Public Safety Commission, considered necessary for the control of the 
Department. 
Texas Transportation Code, sec.706.006 is affected by this proposal.

sec.15.111. Purpose and Scope. 
This section applies to denial of license renewal for failure to appear reported 
to the department under authority of Texas <nl>Transportation Code, Chapter 
706<ol> [Civil Statutes, Article 6687d], based on violations of traffic law 
occurring on and after September 1, 1995. 

sec.15.119. Clearance Report When No Fee Is Required.
(a) If the court finds that the license holder has established good cause for 
having previously failed to appear, the court shall file an appropriate 
clearance report to the department without requiring the license holder to pay a 
fee. <nl>For purposes of this section, "good cause" means a reasonable excuse 
such as would constitute a defense to a criminal prosecution for failure to 
appear. Examples of good cause are: death of a close family member; a serious, 
sudden accident or illness; required military service; or confinement.<ol> 
(b) If the person who failed to appear is acquitted of the underlying traffic 
charge for which the failure to appear report was filed, the court shall file an 
appropriate clearance report without requiring the license holder to pay a fee. 
<nl>Acquittal means an official fact-finding made in the context of the 
adversary proceeding by an individual or group of individuals with the legal 
authority to decide the question of guilt or innocence. For purposes of this 
section, acquittal also includes a dismissal by the court upon proof of actual 
innocence.<ol> A person is not considered to have been acquitted of the traffic 
charge if the court imposes any conditions upon dismissal of the traffic 
complaint, such as penalties, court costs, educational programs, a period of 
probation, or any other sanction. For purposes of this section, a person is not 
considered to have been acquitted, and the prescribed administrative fee shall 
apply, in all cases that are dismissed under Texas Transportation Code, Chapter 
543, Subchapter B, or under Texas Code of Criminal Procedure, Article 45.54. 

sec.15.120. Clearance Report When Fee Is Required.
A clearance report shall be filed upon payment of a fee of $30 and one or more 
of the following conditions: 
(1) (No change.) 
(2) the perfection of an appeal of the case for which the <nl>failure to appear 
report was submitted<ol> [warrant of arrest was issued]; 
(3) the posting of bond<nl>, an agreed setting or resetting of the case,<ol> or 
the giving of [other ] security to reinstate the charges for which the warrant 
was issued; or 
(4) (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 24, 1998.
TRD-9802721
Dudley M. Thomas
Director
Texas Department of Public Safety
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 424-2890

PART V. Texas Board of Pardons and Paroles
CHAPTER 141. General Provisions
SUBCHAPTER A. Board of Pardons and Paroles
37 TAC sec.sec.141.1-141.4, 141.7
The Policy Board of the Texas Board of Pardons and Paroles proposes amendments 
to sec.sec.141.1-141.4, and new sec.141.7, concerning general provisions. The 
amendments and new section are proposed to reflect the changes made by House 
Bill 1386, Chapter 161, sec.5 and sec.6, Acts of the 75th Legislature, Regular 
Session, 1997 (effective September 1, 1997) with respect to the formation of the 
Policy Board of the Texas Board of Pardons and Paroles; composition of its 
membership; duties of the presiding officer; and duties of the members of the 
Policy Board. In addition, the proposed amendment to sec.141.3, sets out the 
role of the members of the Policy Board in coordinating board activities and 
caseload assignment to Board members, as well as providing for administration of 
other matters as required by the presiding officer.
Victor Rodriguez, Chair of the Policy Board, has determined that for the first 
five-year period the proposed amendments and new rule are in effect, there will 
be no fiscal implications for state or local government as a result of enforcing 
or administering the amendments and new section. 
Chairman Rodriguez also has determined that for each year of the first five 
years the amendments and new rule as proposed are in effect, the public benefit 
anticipated as a result of enforcing the section will be a clarification of the 
role of the presiding officer and of the composition of the Policy Board; 
redefinition of the manner in which the Policy Board conducts meetings; and 
clarification of the manner in which the Policy Board conducts business. There 
will be no effect on small businesses. There is no anticipated economic cost to 
persons required to comply with the amendments and new rule as proposed.
Comments should be directed to Laura McElroy, General Counsel, Texas Board of 
Pardons and Paroles, P.O. Box 13401, Austin, Texas 78711. Written comments from 
the general public should be received within 30 days of the publication of the 
amendments and new rule. 
The amendments and new rule are proposed under Code of Criminal Procedure, 
Article 42.18, sec.6A (a) and (b), which provide for the creation of the Policy 
Board; and sec.6A (c) (1), which provides the Policy Board with authority to 
adopt rules relating to the decision-making processes used by the Board and 
Board panels; sec.6C (d), which designates the six-members of the Policy Board 
as the voting members of the Board for policy making purposes; sec.6A (c) (2)-
(5), which charge the Policy Board with responsibility of defining caseloads for 
Board members as well as other administrative duties; sec.6 (a), which provides 
for the selection of the presiding officer by the governor; and Government Code, 
sec.508.045 (b), which provides that the presiding officer shall decide the 
composition of the Board panels. 
There is no cross-reference to the proposed rules. 

sec.141.1. Chairmanship <nl>and Membership<ol> of the Board. 
<nl>(a)<ol> <nl>The presiding officer (chair)<ol> [The chairman] is designated 
by the governor and serves in that capacity at the pleasure of the governor. 
<nl>The presiding officer<ol> [The Chairman] acts as <nl>spokesperson<ol> 
[spokesman] for the board. [after obtaining the views and collaboration of his 
colleagues if present. The chairman appoints six board members to serve on the 
Executive committee of the board who serve in that capacity at the pleasure of 
the chairman.
<nl>(b)<ol> Six members of the board shall serve as the policy board of the 
Board of Pardons and Paroles. The governor designates the policy board. The term 
of a member of the policy board is six years, to be served concurrently with the 
member's term on the board. The presiding officer of the board shall serve as 
presiding officer of the policy board. 

sec.141.2. Quorum. 
<nl>The transaction of business before the policy board shall be only upon a 
quorum of the policy board and decisions shall be upon a majority of the quorum. 
Four members of the Policy Board constitute a quorum.<ol> [A majority of the 
board or any panel thereof shall constitute a quorum for the transaction of all 
business before it.] 

sec.141.3. Majority Vote. 
<nl>(a)<ol> The policy board, only upon a quorum and upon a majority of the 
quorum, shall determine matters that affect all board members. 
<nl>(b)<ol> <nl>Members of the policy board shall coordinate activities of the 
board, assure a maximum efficiency and fair distribution of the caseload, and 
administer other matters as required by the presiding officer.<ol> [Major 
questions of policy and procedure require consideration of all members of the 
board. All decisions except parole decisions involving capital offenses 
committed on or after September 1, 1993, shall be made by simply majority vote. 
Parole decisions involving capital felony offenses committed on or after 
September 1, 1993, shall be made by a two-thirds vote of the entire membership 
of the board. In all matters related to policies or procedures considered by the 
full board, the chairman will only vote on any decision when it is necessary to 
break a tie vote of the members voting on the matter.

sec.141.4. Meetings. 
The <nl>policy<ol> board meets at the call of the <nl>presiding officer<ol> 
[chairman and from time to time as otherwise may be determined by a majority of 
the board making written request to the board's administrative assistant for the 
scheduling of a meeting]. 

sec.141.7. Composition of Parole Panels. 
Parole panels shall determine member caseload. The presiding officer shall 
designate the composition of each panel. 
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 March 2, 1998.
TRD-9803039
Laura McElroy
General Counsel
Texas Board of Pardons and Paroles
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-1883

CHAPTER 145. Parole
SUBCHAPTER A. Parole Process
37 TAC sec.145.12
The Policy Board of the Texas Board of Pardons and Paroles proposes an amendment 
to sec.145.12, concerning action upon review. The amendment is proposed to 
establish additional voting options for use by parole panels when considering 
inmates for release on parole. The Policy Board's purpose in creating these new 
voting options is to ensure that the inmate completes the rehabilitation program 
before release to parole by establishing the earliest program start date and 
determining the minimum number of months the inmate is to participate in the 
program before release to parole. 
Victor Rodriguez, Chair of the Policy Board, 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 this section. 
Chairman Rodriguez also has determined that for each year of the first five 
years the amended rule as proposed is in effect, the public benefit anticipated 
as a result of enforcing the section will be the establishment of procedures to 
enable the Board panel to require the inmate to complete a treatment program 
with the assurance that there will be no interruption in the program before the 
inmate's release to parole. There will be no effect on small businesses. There 
is no anticipated economic cost to persons required to comply with the amendment 
as proposed. 
Comments should be directed to Laura McElroy, General Counsel, Texas Board of 
Pardons and Paroles, P.O. Box 13401, Austin, Texas 78711. Written comments from 
the general public should be received within 30 days of the publication of this 
amendment. 
The amendment is proposed under the Code of Criminal Procedure, Article 42.18, 
sec.8(g) and sec.508.044(d)(1), Government Code, which provide the Policy Board 
with the authority to promulgate rules with respect to the release of inmates on 
Parole and sec.sec.508.045 - 508.047 and sec.508.150, Government Code, which 
provide the Board with the authority to release inmates eligible for parole. 
There is no cross-reference to the proposed rule. 

sec.145.12. Action Upon Review. 
A case reviewed by a parole panel for parole consideration may be:
(1)-(3) (No change.) 
(4) determined that the totality of the circumstances favor the inmate's release 
on parole, further investigation (FI) is ordered in the following manner; and, 
upon release to parole, all conditions of parole or release to mandatory 
supervision that the parole panel is required by law to impose as a condition of 
parole or release to mandatory supervision are imposed: 
(A)-(B) (No change.) 
(C) FI-3 <nl>(Month/Year) - transfer to a TDCJ rehabilitation tier program of 
not less than three months in length and not earlier than the specified date. 
Release to parole upon program completion. Such TDCJ program may include the 
Pre-Release Substance Abuse Program (PRSAP). In no event shall the specified 
date be set more than three years from the current docket date or the date of 
the panel decision if the current docket date has passed <ol>[transfer to Pre-
parole Transfer facility prior to initial parole eligibility, and release to 
parole on parole eligibility date]; 
(D) FI-4 (Month/Year) - transfer to Pre-parole Transfer facility prior to 
presumptive parole date set by board panel and release to parole supervision on 
presumptive parole date, but in no event shall <nl>the specified <ol> [that] 
date be set more than three years from either initial eligibility date, current 
docket date or date of panel decision, if the aforementioned dates have passed; 
(E) (No change.) 
(F) FI 6 (Month/Year) - transfer to <nl>a TDCJ rehabilitation tier program of 
not less than six months in length and not earlier than the specified date. 
Release to parole upon program completion. Such TDCJ program may include the 
Pre-Release Therapeutic Community (PRTC). In no event shall the specified date 
be set more than three years from the current docket date or the date of the 
panel decision if the current docket date has passed<ol> [Inpatient Therapeutic 
Community Program on a specified date, but in no event shall that date be set 
more than three years from either initial eligibility date, current docket date 
or date of panel decision, if the aforementioned dates have passed; release to 
aftercare component only after completion of the IPTC program]; 
<nl>(G)<ol> FI-9 (Month/Year) - Transfer to a TDCJ rehabilitation tier program 
of not less than nine months in length and not earlier than the specified date. 
Release to parole upon program completion. Such TDCJ program may include the In-
Prison Therapeutic Community (IPTC). In no event shall the specified date be set 
more than three years from the current docket date or the date of the panel 
decision if the current docket date has passed; 
<nl>(H)<ol> FI-18 (Month/Year) - transfer to a TDCJ rehabilitation tier program 
of not less than eighteen months in length and not earlier than the specified 
date. Release to parole upon program completion. Such TDCJ program may include 
the Sex Offender Treatment Program (SOTP). In no event shall the specified date 
be set more than three years from the current docket date or the date of the 
panel decision if the current docket date has passed; 
(5) (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 March 2, 1998.
TRD-9803037
Laura McElroy
General Counsel
Texas Board of Pardons and Paroles
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-1883

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART I. Texas Department of Human Services
CHAPTER 92.Personal Care Facilities
The Texas Department of Human Services (DHS) proposes the repeal of sec.92.1, 
concerning purpose; sec.92.2, concerning scope; sec.92.21, concerning method of 
payment; sec.92.101, definitions; and sec.92.129, concerning respite care; 
amendments to sec.92.3, concerning definitions; sec.92.4, concerning types of 
personal care facilities; sec.92.10, concerning criteria for licensing; 
sec.92.11, concerning building approval; sec.92.12, concerning applicant 
disclosure requirements; sec.92.13, concerning time periods for processing 
license applications; sec.92.14, concerning increase in capacity; sec.92.15, 
concerning renewal procedures and qualifications; sec.92.16, concerning change 
of ownership; sec.92.17, concerning criteria for denying a license or renewal of 
a license; sec.92.18, concerning license fees; sec.92.41, concerning standards 
for type A and type B personal care facilities; sec.92.61, concerning 
introduction and application; sec.92.62, concerning general requirements; 
sec.92.63, concerning construction and initial survey of completed construction; 
sec.92.81, concerning inspections and surveys; sec.92.82, concerning 
determinations and actions pursuant to inspections; sec.92.102, concerning 
abuse, neglect, or exploitation reportable to the Texas Department of Human 
Services by facilities; sec.92.103, concerning complaint investigation; 
sec.92.106, concerning general provisions; sec.92.124, concerning procedures for 
inspection of public records; sec.92.125, concerning resident's bill of rights 
and provider bill of rights; sec.92.127, concerning required postings; 
sec.92.153, concerning revocation; sec.92.155, concerning emergency license 
suspension and closing order; and new sec.92.2, concerning basis and scope; 
sec.92.19, concerning advertisements, solicitations, and promotional material; 
sec.92.20, concerning provisional license; sec.92.101, definitions of "abuse," 
"neglect," and "exploitation;" and sec.92.154, concerning unlicensed facilities, 
in its Personal Care Facilities chapter. The purpose of the proposal is to 
implement House Bills 1596 and 2601, which were passed during the 75th 
Legislature, and to update the current regulations, which have not been revised 
since 1989. The new legislation establishes a six-month provisional license for 
existing unlicensed facilities, which are in compliance with resident care 
standards, but require additional time to achieve compliance with Life Safety 
Code standards; allows the department to seek a temporary restraining order 
against a personal care facility which is operating without a license; sets 
civil penalties of $1,000 to $10,000 for persons operating a personal care 
facility without a license; and requires personal care facilities to use their 
license numbers in all advertising. 
Eric M. Bost, commissioner, 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. Mr. 
Bost 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 to better protect the residents of personal care homes through 
up- to-date rules. The adoption of the sections will have a minimal impact on 
small businesses. The sections do not require personal care providers to expend 
significant additional dollars to meet the requirements. One requirement will 
increase the number of continuing education hours from six to twelve; however, 
the fiscal impact to providers is minimal. 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 Susan Syler at 
(512) 438-3111 in DHS's Long Term Care Policy Section. Written comments on the 
proposal may be submitted to Supervisor, Rules and Handbooks Unit-052, Texas 
Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, 
within 30 days of publication in the Texas Register

SUBCHAPTER A.Introduction
40 TAC sec.sec.92.1, 92.2
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Human Services or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Health and Safety Code, Chapter 247, which 
authorizes the department to license personal care facilities, and Human 
Resources Code, Title 2, Chapter 22, which authorizes the department to 
administer public assistance programs. 
The repeal implements the Health and Safety Code, sec.sec.247.001-247.066, and 
the Human Resources Code, sec.sec.22.001-22.030.
sec.92.1 Purpose.
sec.92.2 Scope.
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 March 2, 1998.
TRD-9802990
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

40 TAC sec.sec.92.2-92.4
The new section and amendments are proposed under the Health and Safety Code, 
Chapter 247, which authorizes the department to license personal care 
facilities, and Human Resources Code, Title 2, Chapter 22, which authorizes the 
department to administer public assistance programs. 
The new section and amendments implement the Health and Safety Code, 
sec.sec.247.001-247.066, and the Human Resources Code, sec.sec.22.001-22.030. 

sec.92.2. Basis and Scope. 
(a) Basis in legislation. The licensing standards for personal care facilities 
are promulgated under the authority of the Health and Safety Code, Chapter 247. 
(b) Scope. The licensing standards for personal care facilities contain the 
minimum standards that a facility must meet in order to be licensed as a 
personal care facility. The standards serve as a basis for survey activities for 
licensure. 
(1) A personal care facility is an establishment, including a board and care 
home, that provides, in one or more facilities: food and shelter to four or more 
persons who are unrelated to the owner of the establishment; personal care 
services; minor treatment under the direction and supervision of a physician 
licensed by the Texas State Board of Medical Examiners; or services which meet 
some need beyond basic provision of food, shelter, and laundry. 
(A) The Texas Department of Human Services considers one or more facilities to 
be part of the same establishment and, therefore, subject to licensure as a 
personal care facility, based on the following factors:
(i) common ownership: 
(ii) physical proximity; 
(iii) shared services, personnel, or equipment in any part of the facilities' 
operations; and 
(iv) any public appearance of joint operations or of a relationship between the 
facilities. 
(B) The presence or absence of any one factor in subparagraph
(A) of this paragraph is not conclusive. 
(2) A personal care facility does not include an establishment which furnishes 
food, shelter, and care to fewer than four persons unrelated to the owner. 
(3) Structured or organized medical, nursing, or other care as found in licensed 
hospitals and licensed nursing facilities, and similar specialized facilities, 
cannot be furnished by the licensed personal care facility staff, but licensed 
nursing staff may administer medication and provide general supervision or 
oversight of the physical and mental well-being of residents, enabling them to 
maintain their independence. Residents may contract to have home health services 
delivered. 
(c) Personal care residents. General characteristics of personal care residents 
include, but are not limited to, the following. A resident may: 
(1) exhibit symptoms of mental or emotional disturbance, but is not considered 
at risk of imminent harm to self or others; 
(2) need assistance with movement; 
(3) require assistance with bathing, dressing, and grooming;
(4) require assistance with routine skin care, such as application of lotions, 
or treatment of minor cuts and burns; 
(5) need reminders to encourage toilet routine and prevent incontinence; 
(6) require temporary services by professional personnel;
(7) need assistance with medications, supervision of self-medication, or 
administration of medication; 
(8) require encouragement to eat or monitoring due to social or psychological 
reasons of temporary illness; 
(9) be hearing impaired or speech impaired; 
(10) be incontinent without pressure sores; 
(11) require established therapeutic diets; 
(12) require self-help devices; and 
(13) need assistance with meals.

sec.92.3. Definitions.
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
<nl>(1)<ol> Affiliate - With respect to a: 
(A) partnership, each partner thereof; 
(B) corporation, each officer, director, principal stockholder, subsidiary, and 
each person with a disclosable interest, as the term is defined in this section. 
(C) natural person: 
(i) each person's spouse; 
(ii) each partnership and each partner thereof of which said person or any 
affiliate of said person is a partner; and 
(iii) each corporation in which said person is an officer, director, principal 
stockholder, or person with a disclosable interest. 
<nl>(2)<ol> Applicant - A person <nl>applying for a personal care license 
<ol>[required to be licensed] under Health and Safety Code, Chapter 247. 
<nl>(3)<ol> Attendants - <nl>A facility employee who provides direct care to 
residents. <ol>[Any individual who is providing service to residents, and can 
include,] <nl>This individual may serve other functions which may include, 
<ol>but <nl>are <ol>[is] not limited to, aides, cooks, janitors, porters, maids, 
laundry workers, security personnel, bookkeepers, managers, etc. [as they also 
are of service.
<nl>(4)<ol> <nl>Change of ownership - A change of 50% or more in the ownership 
of the business organization that is licensed to operate the facility; in the 
owner holding the facility license; or in the federal tax payer identification 
number. <ol>
<nl>(5)<ol> Co-mingles - The laundering of wearing apparel and/or linens of two 
or more individuals together. 
<nl>(6)<ol> Dietitian - A dietitian is as follows.
(A) A registered dietitian is a dietitian who is currently registered by the 
Commission on Dietetic Registration <nl>of the American Dietetic Association, or 
<ol>[.] 
(B) A licensed dietitian is a dietitian who is currently licensed by the Texas 
State Board of Examiners of Dietitians and who has 15 hours of dietetic 
continuing education annually. 
<nl>(7)<ol> Facility - An <nl>establishment <ol>[institution coming] under the 
scope of Personal Care Facility Licensing Act, Health and Safety Code, Chapter 
247, [and] <nl> which <ol>furnishes room, board, and one or more <nl>personal 
care <ol>services [of a personal care or protective nature]. 
<nl>(8)<ol> Governmental unit - The state or any county, municipality or other 
political subdivision, or any department, division, board, or other agency of 
any of the foregoing. 
<nl>(9)<ol> Immediately available - The capacity of facility staff to 
immediately respond to an emergency situation after being notified through a 
communication and/or alarm system. The staff is to be no more than 600 feet from 
the farthest resident. 
<nl>(10)<ol> Manager - A person having a contractual relationship to provide 
management services to a facility. 
<nl>(11)<ol> Management services - Services provided under contract between the 
owner of a facility and a person to provide for the operation of a facility, 
including administration, staffing, maintenance, or delivery of resident 
services. Management services <nl>do <ol>[shall] not include contracts solely 
for maintenance, laundry, or food services. 
<nl>(12)<ol> Medication - Medication is: 
(A) any substance recognized as a drug in the official United States 
Pharmacopoeia, Official Homeopathic Pharmacopoeia of the United States, Texas 
Drug Code Index or official National Formulary, or any supplement to any of 
these official documents; 
(B) any substance intended for use in the diagnosis, cure, mitigation, 
treatment, or prevention of disease; 
(C) any substance (other than food) intended to affect the structure or any 
function of the body; 
(D) any substance intended for use as a component of any substance specified in 
this definition. It does not include devices or their components, parts, or 
accessories. 
<nl>(13)<ol> Medication administration - The direct application of a medication 
or drug to the body of a resident by an individual <nl>legally allowed 
<ol>[licensed] to administer medication in the State of Texas. 
<nl>(14)<ol> Medication assistance or supervision - The assistance or 
supervision of the medication regimen by facility staff. Refer to 
sec.92.41<nl>(e) <ol>of this title (relating to Standards for Personal Care 
Facilities). 
<nl>(15)<ol> Medication (self-administration) - The capability of resident's to 
administer their own medication/treatments without assistance from the facility 
staff. 
<nl>(16)<ol> NFPA 101 - The 1988 publication titled "NFPA 101 Life Safety Code" 
published by the National Fire Protection Association, Inc., Batterymarch Park, 
Quincy, Massachusetts 02269. 
<nl>(17)<ol> Person - Any individual, firm, partnership, corporation, 
association, or joint stock association, and the legal successor thereof. 
<nl>(18)<ol> Person with a disclosable interest - A person with a disclosable 
interest is any person who owns five percent interest in any corporation, 
partnership, or other business entity that is required to be licensed under 
Health and Safety Code, Chapter 247. A person with a disclosable interest does 
not include a bank, savings and loan, savings bank, trust company, building and 
loan association, credit union, individual loan and thrift company, investment 
banking firm, or insurance company unless such entity participates in the 
management of the facility. 
<nl>(19)<ol> <nl>Personal care services - Assistance with meals, dressing, 
movement, bathing, or other personal needs or maintenance; the administration of 
medication or the assistance with or supervision of medication; or general 
supervision or oversight of the physical and mental well-being of a person who 
needs assistance to maintain a private and independent residence in the facility 
or who needs assistance to manage his personal life, regardless of whether a 
guardian has been appointed for the person. <ol>
<nl>(20)<ol> Physician - A practitioner licensed by the Texas State Board of 
Medical Examiners. 
<nl>(21)<ol> Resident - Anyone accepted for care in the personal care facility. 
<nl>(22)<ol> Respite - The provision by a facility of room, board, and care at 
the level ordinarily provided for permanent residents of the facility to a 
person for not more than 60 days for each stay in the <nl> facility 
<ol>[institution]. 
<nl>(23)<ol> Safety - <nl>Protection <ol>[Action taken to protect] from injury 
or loss of life due to such conditions as fire, electrical hazard, unsafe 
building or site conditions, and the hazardous presence of toxic fumes and 
materials. 
<nl>(24)<ol> Service plan - A written description of the medical care or the 
supervision and nonmedical care needed by a person.
<nl>(25)<ol> <nl> Short-term acute episode - An illness of less than 30 days 
duration. <ol>
<nl>(26)<ol> <nl>Staff - Any employee of a personal care facility. <ol>
<nl>(27)<ol> Standards - The minimum licensing standards in subchapter C of this 
chapter (relating to Standards for Licensure) intended to protect the health and 
safety of the residents. 
<nl>(28)<ol> <nl>Terminal condition - A medical diagnosis, certified by a 
physician, of an illness which will result in death in six months or less. <ol>
<nl>(29)<ol> <nl>Universal precautions - An approach to infection control in 
which blood, any body fluids visibly contaminated with blood, and all body 
fluids in situations where it is difficult or impossible to differentiate 
between body fluids are treated as if known to be infectious for HIV, hepatitis 
B, and other bloodborne pathogens.<ol>
[Act- The Personal Care Facility Licensing Act, Health and Safety Code, Chapter 
247.]
[Authority having jurisdiction (AHJ)- Texas Department of Human Services.]
[Impractical resident- An impractical resident is:] 
[(A) a resident with a physical disability of a nature that he/she is not 
capable of maneuvering in a wheelchair, walker, etc., unaided;] 
[(B) a resident who will not take or cannot understand instructions from a staff 
member; or] 
[(C) a resident who is taking medication which will make it difficult for a 
staff member to arouse the person quickly.
[Long term care facility- A personal care facility, a nursing facility, a 
facility serving persons with mental retardation or related conditions, 
maternity facility, personal care facility, or similar facility.]
[Personal care- Acts of a protective nature. Personal care is understood to mean 
adult and responsible supervision of or assistance with routine living functions 
in instances of a resident's condition necessitating such supervision or 
assistance. Personal care includes a wide variety of services which would 
require or result in the presence of an intermediary for the protection and care 
of the resident. Refer to sec.92.2 of this title (relating to Scope).]
[Personal care administrator- The person responsible for the overall care of a 
personal care facility.]
[Sanitation- Action taken to protect from illness, the transmission of disease, 
or loss of life due to unclean surroundings, the presence of disease-
transmitting insects, or rodents, unhealthful conditions or practices in the 
preparation of food and beverage, or the care of personal laundry.]

sec.92.4. Types of Personal Care Facilities.
Types of personal care facilities are as follows. 
(1) Type A. In a Type A facility a resident: 
(A) <nl>must be <ol>[is] physically and mentally capable of evacuating the 
facility unassisted in the event of an emergency. This may include the mobile 
nonambulatory, e.g., persons in wheelchairs <nl> or electric carts <ol>having 
the capacity to transfer and evacuate themselves in an emergency; 
(B) does not require [usual and] routine attendance during nighttime sleeping 
hours; and 
(C) must be capable of following directions [for taking appropriate action for 
self-preservation] under emergency conditions.
(2) Type B. In a Type B facility a resident may:
(A) [be physically and/or mentally incapacitated or handicapped, and would] 
require staff assistance to evacuate; 
(B) be incapable of following directions [and taking appropriate action for 
self-preservation] under emergency conditions;
(C) require <nl>attendance <ol>[routine supervision] during nighttime sleeping 
hours [. An attendant must be awake and on call for assistance]; <nl>or<ol> 
(D) not be <nl>permanently <ol>bedfast, but may <nl>require assistance in 
transferring to and from a wheelchair <ol>[be chairfast needing assistance with 
transferring upon arising and retiring,]<nl>; however, <ol>[but] once into the 
chair, the resident is able to move about independently<nl>. <ol>[; or] 
[(E) have needs such as indwelling catheter, routine colostomy care, etc., when 
self-care is provided and appropriate or when care is provided by contract with 
professional personnel by the individual resident.] 
(3) (No change.) 
<nl>(4)<ol> <nl>Type D. An establishment which qualifies as a personal care 
facility under sec.92.2(b)(1)(A) of this title (relating to Basis and Scope), 
operated by a person certified by the Texas Department of Mental Health and 
Mental Retardation (TDMHMR) as a provider in a sec.1915(c) waiver program and 
providing personal care services only to persons in such a program, will be 
deemed licensed as a Type D facility without having to apply for a personal care 
facility license. <ol>
<nl>(A)<ol> <nl>After the effective date of this rule and at least 45 days prior 
to recertification with TDMHMR, the facility must submit an application and fee 
for a personal care license. Failure to submit the application and fee at least 
45 days prior to the date of recertification with TDMHMR will result in loss of 
deemed licensure. <ol>
<nl>(B)<ol> <nl>A facility applying for licensure as a Type D facility after the 
effective date of this rule must be certified by TDMHMR at the time of 
application to the Texas Department of Human Services.<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 March 2, 1998.
TRD-9802991
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER B.Application Procedures
40 TAC sec.sec.92.10-92.20
The amendments and new sections are proposed under the Health and Safety Code, 
Chapter 247, which authorizes the department to license personal care 
facilities, and Human Resources Code, Title 2, Chapter 22, which authorizes the 
department to administer public assistance programs. 
The amendments and new sections implement the Health and Safety Code, 
sec.sec.247.001-247.066, and the Human Resources Code, sec.sec.22.001- 22.030. 

sec.92.10.Criteria for Licensing. 
(a) (No change.) 
(b) An applicant for a license must submit a complete application form and 
license fee to the Texas Department of Human Services (DHS). <nl> An application 
which remains incomplete after 120 days will be denied.<ol>
(c) An applicant for a license must affirmatively show that:
(1)-(3) (No change.) 
(4) the facility meets the standards for operation based upon an on-site survey. 
<nl>The initial survey for an applicant for a new license must include the 
observation of the care of resident(s).<ol> 
[(d) The applicant must provide all information requested on the application 
form and submit the appropriate fees as a prerequisite for DHS to conduct a 
feasibility inspection or plan review, as requested or required.] 
<nl>(d)<ol> [(e)] A license will be issued to a facility meeting all 
requirements of this chapter and will be valid for one year. [Each license 
specifies the] <nl>The <ol>maximum allowable number of residents <nl>specified 
on the license <ol>[to be cared for at any one time. This number] may not be 
exceeded.

sec.92.11. Building Approval. 
[(a) Local fire authority.] All applications for licensure must include the 
written approval of the local fire authority that the facility and its operation 
meet local fire ordinances. 
[(b) Local health authority. The following procedures allow the local health 
authority to provide recommendations to DHS concerning licensure of a facility.] 
(1) New facility. The sponsor of a new facility under construction or a 
previously unlicensed facility must provide to <nl>the Texas Department of Human 
Services (DHS) <ol>[DHS] a copy of a dated notice to the local health authority 
that construction or modification has been or will be completed by a specific 
date. The sponsor must also provide a copy of a dated notice of the approval for 
occupancy by the [local fire marshal or] local building code authority, if 
applicable. The local health authority may provide recommendations to DHS 
regarding the status of compliance with local codes, ordinances, or regulations. 
[Local health authority comments and recommendations must be received by DHS 
within ten days after the date of the sponsor's notice of the fire marshal or 
building code authority approval for occupancy. The local health authority may 
recommend that a state license be issued or denied; however, the final decision 
on licensure status remains with DHS.] 
(2) Increase in capacity. The license holder must request from DHS an 
application for increase in capacity. DHS <nl>provides <ol>[will provide] the 
license holder with the application form and will notify the local fire marshal 
and the local health authority of the request. The license holder must arrange 
for the inspection of the facility by the local fire marshal. The license holder 
must notify the local health authority in writing when the facility has passed 
inspection and provide a copy of the dated notice to DHS. [The local health 
authority may provide recommendations to DHS regarding the status of compliance 
with local codes, ordinances, or regulations. Local health authority comments 
and recommendations must be received within ten days after the date of the 
facility's notice of the local fire marshal or building code authority approval. 
The local health authority may recommend that an increase in capacity be granted 
or denied; however, the final decision on the increase remains with DHS.] DHS 
<nl>approves <ol>[will approve] the application only if the facility is found to 
be in compliance with the standards. Approval to occupy the increased capacity 
may be granted by DHS prior to the issuance of the license covering the 
increased capacity after inspection by DHS if standards are met. 
<nl>(3)<ol> <nl> Decrease in capacity. A room must meet specifications stated in 
sec.92.62(l)(1) of this title (relating to General Requirements) to be licensed 
as a resident bedroom. When a licensed bedroom no longer meets these 
requirements, the license holder must notify the Long Term Care-Regulatory, 
Licensing Section, in writing of a necessary decrease in the facility's licensed 
capacity. Upon receipt of the letter, the facility will be issued a license 
indicating the new licensed capacity. <ol>
<nl>(4)<ol> [(3)] Change of ownership. The applicant for a change of ownership 
license must provide DHS a copy of a letter notifying the local health authority 
of the request for a change of ownership. The local health authority may provide 
recommendations to DHS regarding the status of compliance with local codes, 
ordinances, or regulations. [Local authority recommendations must be received 
within 10 days of the date of the letter from the new owner or date of change of 
ownership, whichever is later, if DHS is to consider the recommendations.] 
<nl>(5)<ol> [(4)] Renewal. DHS sends the local health authority a copy of DHS's 
license renewal notice specifying the expiration date of the facility's current 
license. The local health authority may provide DHS with recommendations 
regarding the status of compliance with local codes, ordinances, or regulations. 
The local authority may also recommend that a state license be issued or denied; 
however, the final decision on licensure status remains with DHS. [Local health 
authority comments and recommendations must be received at least 30 days prior 
to expiration of the license for consideration by DHS.] 
[(5) Inspection plan review. Any existing building being considered for 
licensure must either submit plans for review and approval or request a 
feasibility inspection to be performed by a DHS representative to determine 
construction or renovation requirements.]

sec.92.12. Applicant Disclosure Requirements. 
[(a) Scope of section. No person may apply for a license, change of ownership, 
increase in capacity, or renewal of a license to operate or maintain a facility 
without making a disclosure of information as required in this section.] 
<nl>(a)<ol> [(b) Disclosure] <nl>Application <ol>form. All applications must be 
made on forms prescribed by and available from the Texas Department of Human 
Services (DHS). Each application must be completed in accordance with DHS 
instructions, signed, and notarized. 
<nl>(b)<ol> [(c)] General information required. An applicant must file with DHS 
an application which contains: 
[(1) the name of the applicant and, if an individual, whether the applicant is 
at least 18 years old;] 
[(2) the type of facility;] 
[(3) the location of the facility;]
<nl>(1)<ol> [(4)] for initial applications and changes of ownership only, 
evidence of the right to possession of the facility at the time the application 
will be granted, which may be satisfied by the submission of applicable portions 
of a lease agreement, deed or trust, or appropriate legal document. The names 
and addresses of any persons or organizations listed as owner of record in the 
real estate, including the buildings and surrounding grounds, must be disclosed 
to DHS; 
<nl>(2)<ol> [(5)] certificate of good standing as issued by the comptroller of 
public accounts; and 
<nl>(3)<ol> [(6)] for initial applications and changes of ownership only, the 
certificate of incorporation as issued by the secretary of state for a 
corporation or a copy of the partnership agreement for a partnership. 
[(d) Disclosure requirements. Applicants must disclose the following information 
for the two-year period preceding the application date, concerning the 
applicant, persons with a disclosable interest, officers, affiliates, and 
manager, without regard to whether the data required relates to current or 
previous events:] 
[(1) denial or revocation of a license to operate a nursing facility, facility 
serving persons with mental retardation or related conditions, personal care 
facility, or similar facility in any state;] 
[(2) federal or state long-term care facility sanctions or penalties;] 
[(3) state or federal criminal convictions for any offense that provides a 
penalty of incarceration;] 
[(4) unsatisfied final judgments;]
[(5) operation of a facility that has been decertified in any state under 
Medicare or Medicaid;] 
[(6) debarment, exclusion, or contract cancellation in any state from Medicare 
or Medicaid;] 
[(7) eviction involving any property or space used as a facility in any state;] 
[(8) orders from any court restraining or enjoining the applicant, manager, or 
any person with a controlling interest from operating a facility in any state; 
and] 
[(9) any of the adverse actions noted in paragraphs (1)-(8) of this subsection 
taken against the applicant by all relevant licensing and certification agencies 
in all other states in which the applicant owns, operates or manages nursing 
facilities, facilities serving persons with mental retardation or related 
conditions, personal care facilities, or similar facilities. The applicant must 
obtain letters or other documentation from those agencies attesting to the 
adverse actions or the absence of any adverse actions.] 
[(e) Required ownership and management information for the past two years.] 
[(1) Each applicant for a license to operate a facility must disclose to DHS the 
name and business address of:] 
[(A) each limited partner and general partner if the applicant is a 
partnership;] 
[(B) each director and officer if the applicant is a corporation; and] 
[(C) each person having a beneficial ownership interest of 5.0% or more in the 
applicant corporation, partnership, or other business entity.] 
[(2) If any person described in this section has served or currently serves as 
an administrator, general partner, limited partner, trustee or trust applicant, 
sole proprietor, or any applicant or licensee who is a sole proprietorship, 
executor, or corporate officer or director of or has held a beneficial ownership 
interest of 5.0% or more in any other long- term care facility, the applicant 
must disclose the relationship to DHS, including the name and current or last 
address of the facility and the date the relationship began and, if applicable, 
the date it terminated.
[(3) If the applicant or licensee is a subsidiary of another organization, the 
information must include the names and addresses of the parent organization and 
the names and addresses of the officers and directors of the parent 
organization.] 
[(4) If the facility is operated by, or proposed to be operated under, a 
management contract, the names and addresses of any person or organization, or 
both, having an ownership interest of 5.0% or more in the management company 
must be disclosed to DHS.] 
[(5) The information required by this section must be provided to DHS upon 
initial application for licensure, and changes in the information must be 
provided to DHS on an annual basis, except that a licensee must notify DHS 
within 30 days of any change of the facility's manager.] 
<nl>(c)<ol> [(f)] Exemptions. The provisions of this section do not apply to a 
bank, trust company, financial institution, title insurer, escrow company, or 
underwriter title company to which a license is issued in a fiduciary capacity 
except for provisions that require disclosure relating to the manager of the 
facility. 

sec.92.13. Time Periods for Processing License Applications.
(a)-(d) (No change.) 
(e) A license will be issued or denied within 30 days of the receipt of a 
complete application or within 30 days prior to the expiration date of the 
license. <nl>However, DHS may pend action on an application for renewal of a 
license for up to six months if the facility is subject to a proposed or pending 
licensure termination action on or within 30 days prior to the expiration date 
of the license. <ol>The issuance of the license constitutes DHS's official 
written notice to the facility of the acceptance and filing of the application. 
(f) (No change.) 

sec.92.14.Increase in Capacity. 
(a) During the license term, a license holder may not increase capacity without 
approval from the Texas Department of Human Services <nl> (DHS) 
<ol>[(department)]. The license holder <nl>must <ol>[shall] submit to <nl>DHS 
<ol>[the department] a complete application for increase in capacity and the fee 
required in sec.92.18 of this title (relating to License Fees). 
(b) Upon approval of an increase in capacity, <nl>DHS issues <ol>[the department 
shall issue] a new license. 

sec.92.15.Renewal Procedures and Qualifications.
(a) (No change.) 
(b) Each license holder must, at least 45 days prior to the expiration of the 
current license, file an application for renewal with the Texas Department of 
Human Services <nl>(DHS) <ol>[(department)]. [The application for renewal shall 
contain the same information required for an original application as well as 
payment of the annual licensing fees. ] <nl>DHS considers that an individual has 
filed a timely and sufficient application for the renewal of a license if the 
license holder submits:<ol>
<nl>(1)<ol> <nl>a complete application to DHS, and DHS receives the complete 
application at least 45 days before the current license expires; or <ol>
<nl>(2)<ol> <nl> an incomplete application to DHS with a letter explaining the 
circumstances which prevented the inclusion of the missing information, and DHS 
receives the incomplete application and letter at least 45 days before the 
current license expires. <ol>
<nl>(c)<ol> <nl>If the application is postmarked by the filing deadline, the 
application will be considered to be timely if received in the Licensing Section 
of the state office of Long- Term Care-Regulatory, Texas Department of Human 
Services, within 15 days of the postmark. <ol>
<nl>(d)<ol> <nl>Failure to file a timely and sufficient application will result 
in the expiration of the license. <ol>
<nl>(e)<ol> <nl>The application for renewal must contain information as required 
by sec.92.12 of this title (relating to Applicant Disclosure Requirements) and 
the annual licensing fee. <ol>
<nl>(f)<ol> [(c)] The renewal of a license may be denied for the same reasons an 
original application for a license may be denied (see sec.92.17 of this title 
relating to Criteria for Denying a License or Renewal <nl>of a License<ol>). 

sec.92.16.Change of Ownership. 
(a) During the license term, a license holder may not transfer the license as a 
part of the sale of the facility. Prior to the sale of the facility, the license 
holder <nl>must <ol>[shall] notify the Texas Department of Human Services 
(department) that a change of ownership is requested. The prospective purchaser 
<nl>must <ol>[shall] submit to the department a complete application for a 
license under sec.92.11 of this title (relating to Criteria for Licensing) at 
least 30 days prior to the anticipated date of sale. The applicant <nl>must 
<ol>[shall] meet all requirements for a license. 
(b) Pending the review of the prospective purchaser's application, the license 
holder <nl>must <ol>[shall] continue to meet all requirements for operation of 
the facility. 

sec.92.17.Criteria for Denying a License or Renewal <nl> of a License<ol>.
(a) The Texas Department of Human Services (DHS) may deny an initial license or 
refuse to renew a license if an applicant, manager, or affiliate: 
(1) substantially fails to comply with the requirements described in sec.92.41 
of this title (relating to Standards for Personal Care Facilities) including, 
but not limited to: 
(A) noncompliance that <nl>posed or <ol>poses a serious threat to health and 
safety, or 
(B) (No change.) 
(2)-(3) (No change.) 
(4) provides the following false or fraudulent information:
(A)-(C) (No change.) 
(D) knowingly conceals a material fact <nl>related to licensure<ol>; or 
(E) (No change.) 
(5) (No change.) 
(6) discloses any of the following actions within the two-year period preceding 
the application: 
(A) (No change.) 
(B) federal or state long-term care facility, personal care facility or similar 
facility sanctions or penalties, including but not limited to, monetary 
penalties, <nl>involuntary <ol>downgrading <nl>of <ol>the status of a facility 
license, proposals to decertify, directed plans of correction or the denial of 
payment for new Medicaid admissions; 
(C) (No change.) 
(D) unsatisfied final judgments <nl>excluding judgements wholly unrelated to the 
provision of care rendered in long term care facilities;<ol> 
(E) (No change.) 
(F) suspension of a license to operate a health care facility, long-term care 
facility, personal care facility, or a similar facility in any state<nl>; and 
<ol>[.] 
<nl>(7)<ol> <nl>violates Texas Health and Safety Code sec.247.021. <ol>
(b)-(f) (No change.) 

sec.92.18.License Fees. 
(a) Basic fees. 
(1) (No change.) 
(2) Type C <nl>and D<ol>. The license fee is $50. The fee must be paid with each 
initial application and annually with each application for renewal of the 
license. 
<nl>(3)<ol> <nl>Provisional license. The license fee is $75. <ol>
<nl>(4)<ol> [(3)] Increase in beds. An approved increase in beds is subject to 
an additional fee of $3.00 for each bed. 
(b) Trust fund fee. 
(1) In addition to the basic license fee described in subsection (a) of this 
section, the Texas Department of Human Services (DHS) has established a trust 
fund for the use of a court- appointed trustee as described in the Health and 
Safety Code, Chapter 242, Subchapter D, <nl>Chapter 252,<ol> and Chapter 247, 
sec.247.003(b). 
(2) DHS charges and collects an annual fee from each institution licensed under 
Health and Safety Code, Chapters 242 and 247, each calendar year if the amount 
of the nursing and convalescent trust fund is less than <nl>$500,000 
<ol>[$100,000]. The fee is based on a monetary amount specified for each 
licensed unit of capacity or bed space and is in an amount sufficient to provide 
<nl>$500,000 <ol>[$100,000 ] in the trust fund. In calculating the fee, the 
amount will be rounded to the next whole cent. 
<nl>(c)<ol> <nl>Payment of fees. Payment of fees must be by check, cashier's 
check, or money order made payable to the Texas Department of Human Services. 
All fees are nonrefundable, except as provided by the Texas Government Code, 
Chapter 2005. <ol>

sec.92.19. Advertisements, Solicitations, and Promotional Material.
A personal care facility must use its license number in all advertisements, 
solicitations, and promotional materials, including, but not limited to yellow 
pages, brochures and business cards. For purposes of this section, the state-
issued facility identification number will serve as the license number. 

sec.92.20. Provisional License.
(a) The Texas Department of Human Services (DHS) may issue a six-month 
provisional license to existing facilities with residents only if: 
(1) the facility is in compliance with resident care standards;
(2) the facility voluntarily discloses that the facility needs additional time 
to comply with life safety code and physical plant standards;
(3) the disclosure is made in writing by certified mail to the Licensing 
Section; Long Term Care-Regulatory: Texas Department of Human Services (TDHS); 
P.O. Box 149030 (E-342); Austin, TX; 78714-9030; 
(4) the lack of compliance with life safety code and physical plant standards 
was not independently detected by DHS nor was an investigation of the lack of 
compliance initiated by the department; and 
(5) the disclosure of the non-compliance was made promptly after the facility 
became aware of it. 
(b) The applicant for a provisional license must submit a complete application 
form and license fee to DHS and include the following:
(1) written approval from the local fire authority that the facility and its 
operation meet local fire ordinances; and 
(2) a copy of a dated notice to the local health authority notifying them of the 
facility's intention to seek a provisional license as a personal care facility. 
(c) If at the end of the six-month provisional license period, the facility does 
not meet life safety code and physical plant standards, DHS will not issue a 
license to the facility. 
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 March 2, 1998.
TRD-9803003
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER C.Standard for Licensure
40 TAC sec.92.21
(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 Human Services or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Health and Safety Code, Chapter 247, which 
authorizes the department to license personal care facilities, and Human 
Resources Code, Title 2, Chapter 22, which authorizes the department to 
administer public assistance programs. 
The repeal implements the Health and Safety Code, sec.sec.247.001-247.066, and 
the Human Resources Code, sec.sec.22.001-22.030. 
sec.92.21. Method of payment. 
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 March 2, 1998.
TRD-9803002
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

40 TAC sec.92.41
The amendment is proposed under the Health and Safety Code, Chapter 247, which 
authorizes the department to license personal care facilities, and 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.sec.247.001- 247.066, 
and the Human Resources Code, sec.sec.22.001-22.030. 

sec.92.41.Standards for <nl>Type A and Type B <ol>Personal Care Facilities. 
(a) <nl>Employees <ol>[Staffing]. 
(1) Manager. 
(A) Each facility <nl>must <ol>[shall] designate, in writing, a manager to have 
authority over the operation. 
(B) The manager <nl>must <ol>[shall] have proof of graduation from an accredited 
high school or certification of equivalency of graduation. 
(C) The manager of a licensed facility <nl>must <ol>[ shall] show evidence of 
<nl>12 <ol>[six] hours of annual continuing education that includes at least one 
of the following areas: 
(i)-(v) (No change.) 
(vi) accounting and budgeting; [or] 
(vii) basic emergency first aid (e.g., CPR, choking, etc.).<nl>; or<ol> 
<nl>(viii)<ol> <nl>federal laws, such as Americans with Disabilities Act, Civil 
Rights Act of 1991, the Rehabilitation Act of 1993, Family and Medical Leave Act 
of 1993, and the Fair Housing Act. <ol>
(D) The manager <nl>must <ol>[shall] be on duty 40 hours per week. 
(E) An individual competent and authorized to act in the absence of the manager 
<nl>must <ol>[shall] be designated in writing. [In a small facility if a 
resident is designated, he/she shall be competent and shall only work a maximum 
of three hours per day in the absence of the manager.] 
(2) Attendants. <nl>Full-time facility attendants must be at least 18 years 
old.<ol> 
(A) <nl>An attendant must <ol>[There shall] be [an attendant] in the facility at 
all times when residents are in the facility. [Additionally, there shall be 
other attendant personnel as needed to:] 
[(i) maintain order, safety, and cleanliness;
[(ii) assist with medication regimens;]
[(iii) prepare and service meals;] 
[(iv) assist with laundry; and] 
[(v) assure that each resident receives the kind and amount of supervision and 
care required to meet his basic needs.
<nl>(B)<ol> <nl>The facility must document that attendants are competent to 
provide personal care and have the following knowledge prior to assuming 
responsibilities: needs of the resident(s) and tasks to be provided, resident's 
health conditions and how they may affect provision of tasks, and conditions 
about which the attendant should notify the facility manager. <ol>
<nl>(C)<ol> <nl>Attendants are not precluded from performing other functions as 
required by the personal care facility. <ol>
<nl>(3)<ol> <nl>Staffing. <ol>
<nl>(A)<ol> <nl>A facility must have sufficient staff to: <ol>
<nl>(i)<ol> <nl> maintain order, safety, and cleanliness;<ol>
<nl>(ii)<ol> <nl>assist with medication regimens; <ol>
<nl>(iii)<ol> <nl>prepare and service meals; <ol>
<nl>(iv)<ol> <nl>assist with laundry; <ol>
<nl>(v)<ol> <nl>assure that each resident receives the kind and amount of 
supervision and care required to meet his basic needs; and <ol>
<nl>(vi)<ol> <nl>ensure safe evacuation of the facility in the event of an 
emergency. <ol>
(B) The staff-resident ratios described in this subparagraph must be maintained 
in a Type A or Type B facility. The facility management has the authority to 
define day, evening, and night shift start and end times.
(i) day = 1 to <nl>16 <ol>[15]; 
(ii)-(iii) (No change.) 
[(C) The attendants shall have the following knowledge prior to assuming 
responsibilities: needs of the resident(s) and tasks to be provided, resident's 
health conditions and how it may affect provision of tasks, and conditions about 
which the attendant should notify the facility manager, and a job description.] 
<nl>(4)<ol> <nl>Staff training. Facilities that employ licensed nurses, nurse 
aides, or medication aides must provide annual inservice training, appropriate 
to their job responsibilities, from one or more of the following areas: <ol>
<nl>(A)<ol> <nl>communication techniques and skills useful when providing 
geriatric care (skills for communicating with the hearing impaired, visually 
impaired and cognitively impaired; therapeutic touch; recognizing communication 
that indicates psychological abuse); <ol>
<nl>(B)<ol> <nl>assessment and nursing interventions related to the common 
physical and psychological changes of aging for each body system; <ol> 
<nl>(C)<ol> <nl>geriatric pharmacology, including treatment for pain management 
and sleep disorders; <ol>
<nl>(D)<ol> <nl>common emergencies of geriatric residents and how to prevent 
them, for example falls, choking on food or medicines, injuries from restraint 
use; recognizing sudden changes in physical condition, such as stroke, heart 
attack, acute abdomen, acute glaucoma; and obtaining emergency treatment; <ol>
<nl>(E)<ol> <nl>common mental disorders with related nursing implications; and 
<ol>
<nl>(F)<ol> <nl>ethical and legal issues regarding advance directives, abuse and 
neglect, guardianship, confidentiality. <ol>
(b) Social services. The facility <nl>must <ol>[shall] provide an activity 
and/or social program at least weekly for the residents. 
(c) Resident assessment. <nl>Within 14 days of admission, a facility must assess 
an individual and develop an individual service plan for providing care, which 
is based on the assessment. The service plan must be approved and signed by the 
person arranging care. The facility must provide care according to the service 
plan. <ol>[A facility that is licensed under these chapters shall care for a 
person according to a service plan that is filed at the facility and agreed upon 
between the facility and the person arranging the care before the facility 
admits the person for the care.]
<nl>(1)<ol> <nl> For respite clients, the facility may keep a service plan for 
six months from the date on which it is developed. During that period, the 
facility may admit the individual as frequently as needed. <ol>
<nl>(2)<ol> <nl>Emergency admissions must be assessed and a service plan 
developed for them. <ol>
(d) <nl>Resident <ol>[Operational] policies, admission policies, and records. 
(1) <nl>Resident <ol>[Operational] policies.
(A) <nl>The facility must have written policies regarding residents accepted, 
services provided, charges, refunds, responsibilities of facility and residents, 
privileges of residents, and other rules and regulations.<ol> 
<nl>(B)<ol> [(A)] Each facility <nl>must make available copies of the resident 
<ol>[shall prepare and make available for distribution detailed written 
operational] policies [. Copies shall be furnished] to staff [personnel] and to 
residents and/or residents' responsible parties at time of admission. 
<nl>Documented notification of any changes to the policies must occur before the 
effective date of the changes.<ol>
[(B) The statement of policies shall cover such details as residents accepted, 
services provided, charges, refunds, responsibilities of facility and residents, 
privileges of residents, and other rules and regulations.
(2) Admission policies. 
<nl>(A)<ol> <nl> A facility must not admit or retain:<ol>
<nl>(i)<ol> <nl> residents whose needs cannot be met by the personal care 
facility, or the neces- sary services secured by the resident. As part of the 
facility's general supervision and oversight of the physical and mental well-
being of its residents, the facility remains responsible for all care provided 
at the facility. If the individual is appropriate for placement in a personal 
care facility, then the decision that additional services are necessary and can 
be secured must be agreed to by the resident and the facility in writing. <ol>
<nl>(ii)<ol> <nl>an individual requiring the services of facility employees who 
are licensed nurses on a daily or regular basis. Individuals with a terminal 
condition or experiencing a short- term, acute episode are excluded from this 
requirement. <ol>
<nl>(B)<ol> <nl> There must be a written admission agreement between the 
facility and the resident. The agreement must specify such details as services 
to be provided and the charges for the services, including any nursing services 
and supplies, with a statement that such services and supplies could be a 
Medicare benefit. <ol>
<nl>(C)<ol> [(A)] Each resident <nl>must <ol>[shall] have a health examination 
by a physician performed within 30 days prior to admission or 14 days after 
admission, unless a transferring hospital or facility has a physical examination 
in the medical record. 
<nl>(D)<ol> [(B)] The personal care facility <nl> must<ol> [shall] secure at the 
time of admission of a resident the following identifying information: full name 
of resident; social security number; usual residence (where resident lived 
before admission); sex; [color or race;] marital status; date of birth; place of 
birth; usual occupation (during most of working life); family<nl>, other persons 
named by the resident, <ol>and physician for emergency notification; pharmacy 
preference; and Medicaid/Medicare number, if available. 
(3) Records. 
[(A) There shall be a written admission agreement between facility and resident. 
The agreement shall specify such details as services to be provided and charges 
therefor, and shall be based on the operational policies.]
[(B)] Records pertaining to residents must [shall] be treated as confidential 
and properly safeguarded from unauthorized use [, and shall be made available 
only to authorized persons and agencies]. Records must be available to 
residents, their legal representatives, and the Texas Department of Human 
Services (DHS) staff.
<nl>(4)<ol> <nl> Personnel records. The facility must keep personnel records on 
all staff in a central location.<ol> 
(e) Medications. 
(1) Administration.
(A) Residents who choose not to or can not self-administer their medications 
must have their medications administered by a person who:
(i) (No change.)
(ii) holds a current medication aide permit and acts under the authority of a 
person who holds a current <nl>nursing<ol> license under state law which 
authorizes the licensee to administer medication. <nl>A medication aide must 
function under the direct supervision of a licensed nurse on duty or on call by 
the facility.<ol>
<nl>(iii)<ol> <nl>an employee of the facility to whom the administration of 
medication has been delegated by a registered nurse, who has trained them to 
administer medications or verified their training. The delegation of the 
administration of medication is governed by 22 TAC sec.218, which implements the 
Nurse Practice Act.<ol>
(B)-(C) (No change.) 
(D) Each resident's medications <nl>must<ol> [shall] be listed on an individual 
resident's medication profile record. The recorded information obtained from the 
prescription label <nl>must<ol> [shall] include, but is not limited to, the 
medication name, strength, dosage, amount received, directions for use, route of 
administration, prescription number, pharmacy name, and the date each medication 
was issued by the pharmacy.
(2) Supervision. Supervision of a resident's medication regimen by facility 
staff may be provided to residents who are incapable of self-administering 
<nl>without assistance<ol> to include and limited to:
(A)-(F) (No change.) 
(3)-(4) (No change.)
(5) Storage.
(A) The facility <nl>must<ol> [shall] provide a locked area for all medications. 
Examples of areas, but not limited to, are:
(i)-(iii) (No change.)
(B) Each resident's medication <nl>must<ol> [shall] be stored separately from 
other resident's medications within the storage area. 
(C) A refrigerator <nl>must<ol> [shall] have a designated and locked storage 
area for medications requiring refrigeration<nl>, unless it is inside a locked 
medication room<ol>.
(D) (No change.)
(6) Disposal. 
(A) (No change.)
(B) Needles and hypodermic syringes with needles attached <nl> must<ol> [shall] 
be disposed as required by 25 TAC sec.sec.1.131-1.137 (relating to the 
Definition, Treatment, and Disposal of Special Waste from Health Care Related 
Facilities).
(C) (No change.)
(f) Accident, injury, or acute illness.
(1) In the event of accident or injury requiring emergency medical, dental or 
nursing care, or in the event of apparent death, the personal care facility 
will: 
(A)-(B) (No change.)
(C) describe and document the injury, accident, or illness on a separate report. 
The report <nl>must<ol> [shall] contain a statement of final disposition and be 
maintained <nl>on<ol> [of] file. 
(2) The facility <nl>must<ol> [shall] stock and maintain in a single location 
first aid supplies to treat burns, cuts, and poisoning.
(3) Residents who need the services of professional nursing or medical personnel 
due to a temporary [incapacitating] illness or injury may have those services 
delivered by persons qualified to deliver the necessary service. 
(g) <nl>Resident<ol> [Personal belongings and] finances.
[(1) Each individual shall have the right to keep and maintain any personal 
belongings in his possession except items which might be harmful to himself or 
others. The facility has no responsibility for such possessions.] 
[(2) Each individual shall have the right of keeping and maintaining his own 
finances.] The personal care facility <nl> must <ol>[shall] keep a simple 
financial record on all charges billed to the resident for care and these 
records <nl>must<ol> [shall] be available to the department, while in the 
facility. If the resident entrusts the handling of any personal finances to the 
personal care facility, a simple financial record <nl>must <ol>[shall] be 
maintained to document accountability for receipts and expenditures, and these 
records must be available to <nl>DHS<ol> [the department]. <nl>Receipts for 
payments from residents or family members must be issued upon request.<ol>
(h) Dietary service.
(1) (No change.)
(2) At least three meals or their equivalent <nl>must <ol> [shall] be served 
daily, at regular times, with no more than a 16-hour span between a substantial 
evening meal and breakfast the following morning. All exceptions <nl>must<ol> 
[shall] be specifically approved by <nl>DHS<ol> [the department].
(3) Menus <nl>must<ol> [shall] be planned one week in advance. Menus 
<nl>must<ol> [shall] be prepared to provide a balanced and nutritious diet, such 
as that recommended by the National Food and Nutrition Board. Food <nl>must<ol> 
[shall] be varied. Records of menus as served <nl>must<ol> [shall] be filed and 
maintained for 30 days after the date of serving. 
(4) Therapeutic diets which <nl>cannot<ol> [can] customarily be <nl>prepared by 
a lay person must be calculated by a qualified dietician. Therapeutic diets 
which can customarily be prepared <ol> [observed] by a person in a family 
setting <nl>may<ol> [are permissible to] be served by the personal care 
facility. [Any individual in need of a therapeutic diet that requires 
professional calculation shall have the diet calculated by a qualified 
dietitian.]
(5) Supplies of staple foods for a minimum of a four-day period and perishable 
foods for a minimum of a one-day period <nl>must<ol> [shall] be maintained on 
the premises. 
(6) Food <nl>must<ol> [shall] be obtained from sources that comply with all laws 
relating to food and food labeling. If food, subject to spoilage, is removed 
from its original container, it <nl> must<ol> [shall] be kept sealed, and 
labeled. Food subject to spoilage <nl>must<ol> [shall] also be dated.
(7) (No change.)
(8) Potentially hazardous food, such as meat and milk products, <nl>must<ol> 
[shall] be stored at 45 degrees Fahrenheit or below. Hot food <nl>must<ol> 
[shall] be kept at 140 degrees Fahrenheit or above during preparation and 
serving. 
(9) Freezers <nl>must<ol> [shall] be kept at a temperature of 0 degrees 
Fahrenheit or below and refrigerators <nl> must<ol> [shall] be 45 degrees 
Fahrenheit or below. Thermometers must [shall] be placed in the warmest area of 
the refrigerator and freezer to assure proper temperature.
(10) Food <nl>must<ol> [shall] be prepared and served with the least possible 
manual contact, with suitable utensils, and on surfaces that prior to use have 
been cleaned, rinsed, and sanitized to prevent cross-contamination. 
(11) Raw foods <nl>must<ol> [shall] be washed with potable water before 
preparation. 
(12) Food service employees, while infected with a disease in a communicable 
form that can be transmitted by foods, or who is a carrier of organisms that 
cause such a disease or while afflicted with a boil, an infected wound, or an 
acute respiratory infection, <nl>must<ol> [shall] not work in the food service 
area in any capacity in which there is a likelihood of such person contaminating 
food or food-contact surfaces with pathogenic organisms or transmitting disease 
to other persons.
(13) Effective hair restraints <nl>must<ol> [shall] be worn to prevent the 
contamination of food.
(14) Tobacco products <nl>must<ol> [shall] not be used in the food preparation 
and service areas.
(15) <nl>Kitchen employees must wash their hands before returning to work after 
using the lavatory.<ol> [Employees shall maintain a high degree of personal 
cleanliness and shall conform to good hygienic practice during all working 
periods in food service.] 
(16) (No change.)
(17) Sanitary dishwashing procedures and techniques <nl> must<ol> [shall] be 
followed. 
(18) Facilities housing 17 or more residents must [shall] comply with 25 TAC 
sec.sec.229.161-229.173 (relating to Food Service Sanitation) and local health 
ordinances or requirements <nl>must<ol> [shall] be observed in the storage, 
preparation, and distribution of food; in the cleaning of dishes, equipment, and 
work area; and in the storage and disposal of waste. 
(i) Infection control.
(1) (No change.)
(2) The facility <nl>must<ol> [shall] comply with departmental rules regarding 
special waste in 25 TAC sec.sec.1.131-1.137 (relating to Definition, Treatment, 
and Disposition of Special Waste from Health Care Related Facilities).
(3) The name of any resident of a facility with a reportable disease as 
specified in 25 TAC sec.sec.97.1 - 97.13 [sec.sec.97.1 - 97.23] (relating to 
Control of Communicable Diseases) shall be reported immediately to the city 
health officer, county health officer, or health unit director having 
jurisdiction, and appropriate infection control procedures shall be implemented 
as directed by the local health authority. 
(4) The facility must have written policies for the control of communicable 
disease in employees and residents, which includes tuberculosis (TB) screening 
and provision of a safe and sanitary environment for residents and employees. 
(A) If employees contract a communicable disease that is transmissible to 
residents through food handling or direct resident care, the employee must be 
excluded from providing these services as long as a period of communicability is 
present. [The decision to return to work must be made by the facility's 
executive director in conjunction with the employee's personal physician or the 
facility's medical director, the local or state health authority if the disease 
is reportable, and in accordance with generally accepted practices.
(B) (No change.)
(C) The facility must screen all employees <nl>for tuberculosis <ol> within two 
weeks of employment and annually<nl>, according to Center for Disease Control 
(CDC) screening guidelines<ol> [for tuberculosis ]. All persons providing 
services under an outside resource contract must, upon request of the facility, 
provide evidence of compliance with this requirement. 
<nl>(D)<ol> <nl> All residents should be screened upon admission and after 
exposure to tuberculosis, in accordance with the attending physician's 
recommendations and CDC guidelines.<ol>
(5) (No change.)
(6) Universal precautions <nl>must<ol> [shall] be used in the care of all 
residents [because a reliable source cannot identify all those persons infected 
with blood-born pathogens].
[(A) Universal precautions apply to blood and other body fluids containing 
visible blood.] 
[(B) General principles of universal precautions.
[(i) All health-care workers shall routinely use appropriate barrier precautions 
to prevent skin and mucous-membrane exposure when contact with blood or other 
body fluids of any resident is anticipated.
[(I) Gloves shall be worn for touching blood and blood contaminated body fluids, 
mucous membranes, or non-intact skin of all residents for handling items or 
surfaces soiled with blood or body fluids, and for performing venipuncture and 
other vascular access procedures.]
[(II) Gloves shall be changed after contact with each resident.]
[(III) Masks and protective eyewear of face shields shall be worn during 
procedures that are likely to generate droplets of blood or other body fluids to 
prevent exposure of mucous membranes of the mouth, nose and eyes.]
[(IV) Gowns or aprons shall be worn during procedures that are likely to 
generate splashes of blood or other body fluids.
[(ii) Hands and other skin surfaces shall be washed immediately and thoroughly 
if contaminated with blood or other body fluids. Hands shall be washed 
immediately after gloves are removed.]
[(iii) All health-care workers shall take precautions to prevent injuries caused 
by needles, scalpels, and other sharp instruments after procedures.] 
[(iv) Although saliva has not been implicated in human immunodeficienty virus 
(HIV) transmission, to minimize the need for emergency mouth-to-mouth 
resuscitation, mouthpieces, resuscitation bags, or other ventilation devices 
shall be available for use in areas in which the need for resuscitation is 
predictable.]
[(v) Pregnant health-care workers are not known to be at greater risk of 
contracting HIV infection than health-care workers who are not pregnant; 
however, if a health-care worker develops HIV infection during pregnancy, the 
infant is at risk of infection resulting from perinatal transmission. Because of 
this risk, pregnant health-care workers should be especially familiar with and 
strictly adhere to precautions to minimize the risk of HIV transmission.]
[(C) The facility must have policies that provide for:] 
[(i) orientation and training at the time of employment and continuing 
education, at least annually, for health-care workers;] 
[(ii) provision of equipment and supplies necessary to minimize the risk of 
infection from blood-born pathogens; and
[(iii) monitoring adherence to recommended protective measures.] 
[(D) The facility shall implement infection control procedures, including, but 
not limited to, universal precautions.
[(E) Facility employees and residents shall be protected from direct exposure to 
blood and body fluids that are visibly contaminated with blood to prevent 
exposure to HIV and hepatitis B virus (HBV).
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 March 2, 1998.
TRD-9803001
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER D.Facility Construction
40 TAC sec.sec.92.61-92.63
The amendments are proposed under the Health and Safety Code, Chapter 247, which 
authorizes the department to license personal care facilities, and Human 
Resources Code, Title 2, Chapter 22, which authorizes the department to 
administer public assistance programs. 
The amendments implement the Health and Safety Code, sec.sec.247.001- 247.066, 
and the Human Resources Code, sec.sec.22.001-22.030. 

sec.92.61. Introduction and Application. 
(a) (No change.) 
(b) Applicability of requirements for construction and life safety. 
(1) All buildings or structures, new or existing, used as a licensed personal 
care facility <nl>must <ol>[shall] be in accordance with these standards. Any 
exceptions are specifically mentioned.
(2) For existing buildings and structures which are converted to personal care 
occupancy, no residents will be admitted until all standards are met and 
approval for occupancy is granted by the licensing <nl>section <ol>[officer] of 
<nl>the Texas Department of Human Services (DHS) <ol>[the department]. 
(3) (No change.) 
(4) Buildings and structures <nl>must <ol>[shall] conform to the 1988 edition, 
of NFPA 101, as published by the National Fire Protection Association, Inc., 
Batterymarch Park, Quincy, Massachusetts 02269, as follows. <nl>DHS has the 
option, for new construction only, of accepting compliance with later editions 
of the code, in their entirety, when required by local building authorities.<ol> 
(A) <nl>All <ol>Type A [small] facilities <nl> and Type B small facilities must 
<ol>[shall] conform to Chapter 21. 
[(B) Type A large facilities shall conform to Chapter 21.] 
[(C) Type B small ("Impractical") facilities shall conform to Chapter 21.] 
<nl>(B)<ol> [(D)] Type B large [("Impractical")] <nl>facilities must <ol>[shall] 
conform to Chapters 21 and 12 (limited care, as defined by the NFPA 101, 
requirements may be used).
(E) Other chapters, sections, subsections, or paragraphs of the NFPA 101 such as 
Chapters 1 through 7 and Chapter 31, <nl>must <ol>[shall] apply as referenced or 
intended for their relation to Chapters 21, 12 and 18. 
(F) (No change.) 
(5) New construction <nl>is <ol>[shall be] subject to local codes. (The 
description of the occupancy may vary with local codes.) In the absence of local 
codes or their enforcement for new construction, the department will require 
conformance to the fundamentals of the following codes: 
(A)-(C) (No change.) 
(D) illumination systems <nl>must <ol>[shall] be designed and installed in 
accordance with the Lighting Handbook of the Illuminatory Engineering Society 
(IES) of North America, except as may be modified in this subchapter. 
(6) An existing building either occupied as a personal care facility at the time 
of initial inspection by <nl>DHS <ol>[the department] or converted to occupancy 
as a personal care facility <nl> must <ol>[shall] meet all local requirements 
pertaining to that building for that occupancy. <nl>DHS will <ol>[The department 
shall] require the facility sponsor or licensee to submit evidence that local 
requirements are satisfied. When local laws, codes or ordinances are more 
stringent than these standards for personal care, the more stringent 
requirements <nl> will <ol>[shall] govern. 
(7) Buildings <nl>must <ol>[shall] be structurally sound with regard to actual 
or expected dead, live, and wind loads according to applicable building codes. 
(8) The facility <nl>must <ol>[shall] meet the provisions and requirements 
concerning accessibility for individuals with disabilities in the following 
laws: the Americans with Disabilities Act of 1990 (Public Law 101- 336; Title 
42, United States Code, Chapter 126); Title 28, Code of Federal Regulations, 
Part 35; Texas Civil Statutes, Article 9102; and Title 16, Texas Administrative 
Code, Chapter 68. Plans for new construction, substantial renovations, 
modifications, and alterations <nl>must <ol>[shall] be submitted to the Texas 
Department of Licensing and Regulation (Attn: Elimination of Architectural 
Barriers Program) for accessibility approval under Article 9102. 
(c) Existing facilities, i.e., facilities [with residents at the time of the 
inspection, of eight beds or less] that have residents but are not licensed as a 
personal care facility <nl>may <ol>[will ] be <nl>issued a six-month provisional 
license, in accordance with sec.92.20 of this title (relating to Provisional 
License), if the facility needs additional time to comply with life safety code 
and physical plant standards <ol>[given 12 months, from the date of the initial 
architectural inspection, to meet the Life Safety Code and physical plant 
requirements of these standards. Facilities of nine beds or more that have 
residents but are not licensed as a personal care facility will be given six 
months, from the date of the initial architectural inspection, to meet the Life 
Safety Code and physical plant requirements of these standards]. 

sec.92.62. General Requirements. 
(a) General. The concept of the National Fire Protection Association (NFPA) 101 
Life Safety Code requirements for fire safety with regard to the residents, is 
based on evacuation capability. <nl>In accordance with Chapter 21 of this title 
(relating to Residential Board and Care Occupancies), Type A facilities are 
classified "slow" evacuation capability and Type B facilities are classified 
"impractical" evacuation capability. <ol>[These standards are written with the 
premise that the residents will be capable of self-evacuation without continuous 
staff assistance. Residents that are not normally capable of self-evacuation nor 
are capable of negotiating stair unassisted, shall not be housed above or below 
the floor of exit discharge unless the facility meets the construction 
requirements of NFPA 101, Chapter 12, titled " Health Care Occupancies For Large 
Facilities" and the "impractical" requirements for small facilities as found in 
NFPA 101, Chapter 21 titled "Residential Board and Care Occupancies ". Examples 
of residents that may not be capable of self-evacuation are as follows:]
[(1) a person with a physical disability of a nature that he is not capable of 
maneuvering in a wheelchair, walker, etc., unaided;] 
[(2) a person who will not take or cannot understand instructions from a staff 
member, or;] 
[(3) a person that is taking medication which will make it difficult for a staff 
member to arouse the person quickly.
(b) Evacuation procedures. Residents [that are housed] in [buildings that are 
licensed as small or large] Type A facilities, <nl>must <ol>[shall] be able to 
demonstrate to <nl> the Texas Department of Human Services (DHS) <ol>[the 
authority having jurisdiction (AHJ)] that they can travel from their living unit 
to a centralized space, such as lobby, living or dining room on the level of 
discharge within a 13 minute period without continuous staff assistance. 
Elevators cannot be used as an evacuation route. 
(c) Operational features. 
(1) All fires causing damage to the facility and/or equipment <nl> must 
<ol>[shall] be reported to <nl>DHS <ol>[the department] within 72 hours. Any 
fire causing injury or death to a resident shall be reported immediately. A 
telephone report <nl>must <ol>[shall] be followed by a written report on a form 
which will be supplied by <nl> DHS <ol>[the department]. 
(2) Fire drills <nl>must <ol>[shall] be conducted at least four times a year on 
each shift. The drills may be announced in advance to the residents. The drills 
<nl>must <ol>[shall] involve the participation of the staff in accordance with 
the emergency plan. Residents <nl>must <ol>[shall] be informed of evacuation 
procedures and locations of exits. All fire drills <nl>must <ol>[shall] be 
documented on a form provided by <nl>DHS <ol>[the department].
(3) Smoking regulations <nl>must<ol> [shall] be established, and smoking areas 
<nl>must <ol>[shall] be designated for residents and staff. Ashtrays of 
noncombustible material and safe design <nl> must <ol>[shall] be provided in 
smoking areas. 
(4) <nl>All facilities, except small, one-story facilities, <ol>[The facility] 
<nl>must <ol>[shall] post an emergency evacuation floor plan. [An exception is 
that small, one- story facilities are not required to post such plans.]
(5) The administration <nl>must <ol>[shall] have in effect and available to all 
supervisory personnel written copies of a plan for the protection of all persons 
in the event of fire and for their remaining in place, for their evacuation to 
areas of refuge, and from the building when necessary. The plan <nl>must<ol> 
[shall] include special staff actions including fire protection procedures 
needed to ensure the safety of any resident and <nl>must<ol> [shall] be amended 
or revised when needed. All employees <nl>must<ol> [shall] be periodically 
instructed and kept informed with respect to their duties and responsibilities 
under the plan. A copy of the plan <nl>must<ol> [shall] be readily available at 
all times within the facility. 
(d) Construction. 
(1) There <nl>must <ol>[shall] be separation from other occupancies. A common 
wall between a personal care facility and another occupancy <nl>must <ol>[shall] 
be not less than a two-hour fire-rated partition. (The partition <nl>must 
<ol>[shall] be as defined by National Fire Protection Association Standards.) A 
licensed nursing facility or licensed hospital is not considered another 
occupancy for this purpose. An exception is where an unlicensed occupancy occurs 
in the same building or structure and is so intermingled that separate 
safeguards are impracticable. The means of egress, construction, protection and 
other safeguards <nl>must <ol>[shall] comply with the NFPA 101 requirements of 
the licensed occupancy. 
(2) Interior wall and ceiling surfaces <nl>must <ol>[shall] have as the finished 
surface or as substrate or sheathing a fire resistance of not less than that 
provided by 3/8" gypsum board (20 minute fire rating), unless approved otherwise 
by <nl>DHS <ol>[the department ]. A sprinkler system will not substitute for the 
minimum construction requirements. An exception is Type B large facilities shall 
meet the construction requirements of NFPA 101, Chapter 12, sec.12-1.6. 
(3) Flame spread rate requirements <nl>must<ol> [ shall] be as specified in NFPA 
101, sec.6-5. Flame spread is the rate of fire travel along the surface of a 
material. (This is different than other requirements for time-rated "burn 
through" resistance ratings, such as one-hour rated.) Flame spread ratings are 
Class A (0-25), Class B (26-75), and Class C (76-200). 
(4) Doors between resident rooms and corridors or public spaces <nl>must 
<ol>[shall] be not less than 1-3/4" thick solid core wood construction or 20-
minute fire-rated, self-closing or automatic-closing, and latch in their frames. 
Exceptions are as follows. 
(A)-(C) (No change.) 
(5) Upper floors <nl>must <ol>[shall] have at least two separate approved 
stairs. Each stair <nl>must<ol> [shall] be arranged and located so that it is 
not necessary to go through another room (such as bedroom or bath) to reach the 
stair. All stairs <nl> must<ol> [shall] be provided with handrails and with 
normal lighting. Refer to NFPA 101 for Class 'A' stair details. An exception is 
that for existing 16 beds or less: at least one main stair may be Class 'B'. 
Such stairs may be constructed of wood. 
(6) All hazardous areas, as defined in the NFPA 101, Chapter 21 or 12, 
<nl>must<ol> [shall] be one-hour fire-separated or provided with sprinkler 
protection or both if considered severe. Gasoline, volatile materials, oil base 
paint, or similar products <nl>must <ol>[shall] not be stored in the building 
housing residents.
(7) Exit signs, with emergency power, <nl>must<ol> [shall] be provided in all 
large facilities and installed in accordance with NFPA 101, sec.5-10. 
(8) Emergency lighting <nl>must<ol> [shall] be provided in all buildings with 25 
or more <nl>rooms<ol> [bedrooms]; in apartment buildings with 12 or more living 
units or which are 3 or more stories in height; and in all large facilities that 
are designed for Type B. The System <nl>must<ol> [shall] be installed in 
accordance with NFPA 101, sec.5-9. 
(e) Fire alarm and sprinkler systems. 
(1) Fire alarm and smoke detection system. <nl>Facilities licensed for eight 
beds or less must provide a manual fire alarm system, with smoke detection that 
complies with House- hold Fire Warning Equipment (NFPA 74), at a minimum. For 
all other facilities, an <ol>[An] underwriter's laboratory (U.L.) listed manual 
fire alarm initiating system, with an interconnected automatic smoke detection 
and alarm initiation system, <nl>must <ol>[shall] be provided in accordance with 
the NFPA 101, sec.7-6. The operation of any alarm initiating device will sound 
an audible/visual alarm(s) at the site. 
(A) Smoke detectors <nl>must<ol> [shall] be installed in resident bedrooms, 
corridors, hallways, living rooms, dining rooms, offices, and public or common 
areas. Service areas, such as kitchens, laundries and attached garages used for 
car parking may have heat detectors in lieu of smoke detectors. Exceptions are 
as follows. 
(i) Large facilities with apartment units may use listed smoke detectors with an 
alarm device and separate heat detector contacts in the living area. The smoke 
detectors must provide an audible signal within the apartment, and annunciate at 
the main staff station or location. The heat detector contacts <nl>must<ol> 
[shall] be connected into the fire alarm system and provide a general alarm when 
activated. 
(ii) (No change.) 
(B) The fire alarm control panel <nl>must<ol> [shall] be visible to staff at or 
near the staff area that is attended 24 hours a day. <nl>An exception to this 
requirement is a fire alarm control panel that is monitored by a device carried 
by the staff.<ol> 
(C) (No change.) 
(D) Emergency power source <nl>must<ol> [shall] be from approved storage 
batteries or on-site engine-driven generator set.
(E) The facility <nl>must<ol> [shall] have a written contract with a fire alarm 
company or person licensed by the State of Texas to maintain the alarm system 
semiannually. <nl>Inspections stipulated in the contract must be performed. <ol>
(F) In large facilities, the fire alarm panel <nl>must <ol>[ shall] indicate as 
a separate zone, each floor and/or smoke compartment. Each zone <nl>must 
<ol>[shall] have an alarm and trouble indication.
(G) In large Type B facilities the fire alarm <nl>must <ol>[ shall] 
automatically notify the fire department in accordance with NFPA 101, sec.7-6.4. 
(2) Sprinkler systems. When installed or required, sprinkler systems 
<nl>must<ol> [shall] meet the following criteria.
(A)-(C) (No change.) 
(f) Site and location. 
(1) The facility <nl>must<ol> [shall] be serviced by a paid or volunteer fire 
fighting unit as approved by <nl>DHS<ol> [the department]. Water supply for fire 
fighting purposes <nl>must<ol> [shall] be as required and approved by the fire 
fighting unit.
(2) Any site or building conditions that are a fire hazard, health hazard, or 
physical hazard <nl>must<ol> [shall] have corrections made as determined by 
<nl>DHS<ol> [the department].
(3) The facility <nl>must<ol> [shall] provide or arrange for nearby parking 
spaces for private vehicles of residents and visitors. A minimum of one space 
<nl>must<ol> [shall] be provided for each four beds or fraction thereof, or per 
local code, whichever is more stringent. 
(4) Ramps, walks, and steps <nl>must<ol> [shall] be of slip-resistive texture 
and uniform, without irregularities. Ramps <nl>must<ol> [shall] not exceed 1:12 
slope, and shall meet handicap standards for width. Guardrails, fences, or 
handrails <nl> must <ol>[shall] be provided where grades make an abrupt change 
in level. 
(5) All outside areas, grounds, adjacent buildings, etc., on the site 
<nl>must<ol> [shall] be maintained in good condition and kept free of rubbish, 
garbage, untended growth, etc., that may constitute a fire or health hazard. 
Site grades <nl>must<ol> [shall] provide for water drainage away from the 
structure to prevent ponding or standing water at or near the building. 
(g) Sanitation and housekeeping. 
(1) Waste water and sewage <nl>must <ol>[shall] be discharged into <nl>an 
approved<ol> [a state-approved municipal] sewerage system <nl>or an onsite 
sewerage facility approved by the Texas Natural Resource Conservation 
Commmission or its authorized agent<ol>[; any exception shall be as approved by 
the department]. 
(2) The water supply <nl>must<ol> [shall] be of safe, sanitary quality, suitable 
for use, and adequate in quantity and pressure, and <nl>must<ol> [shall] be 
obtained from a water supply system, the location, construction, and operation 
of which are approved by <nl>DHS<ol> [the department]. 
(3) Waste, trash, and garbage <nl>must<ol> [shall] be disposed of from the 
premises at regular intervals in accordance with state and local practices. 
Excessive accumulations are not permitted. The facility <nl>must<ol> [shall] 
comply with 25 TAC sec.sec.1.131-1.137 (relating to Definition, Treatment, and 
Disposal of Special Waste from Health Care Related Facilities). 
(4) Operable windows <nl>must<ol> [shall] be insect screened. 
(5) An ongoing pest control program <nl>must <ol>[ shall] be provided by 
facility staff or by contract with a licensed pest control company. The least 
toxic and least flammable effective chemicals <nl> must<ol> [shall] be used. 
(6) All bathrooms, toilet rooms, and other odor-producing rooms or areas for 
soiled and unsanitary operations <nl>must<ol> [shall] be ventilated with 
operable windows or powered exhaust to the exterior for odor control. An 
exception is that [existing] small facilities may vent into an attic <nl>in 
accordance with the Uniform Building Code or local building code<ol> [provided 
that the attic is vented
(7) In kitchens and in laundries, there <nl>must<ol> [shall] be procedures 
utilized by facility staff to avoid cross-contamination between clean and soiled 
utensils and linens. 
(8) The facility <nl>must<ol> [shall] be kept free of accumulations of dirt, 
rubbish, dust, and hazards. Floors <nl> must<ol> [shall] be maintained in good 
condition and cleaned regularly; walls and ceilings <nl>must<ol> [shall] be 
structurally maintained, repaired, and repainted or cleaned as needed. Storage 
areas and cellars <nl>must<ol> [shall] be kept in an organized manner. No 
storage will be permitted in the attic spaces. 
(9) The facility <nl>must<ol> [shall] be capable of being ventilated through the 
use of windows, mechanical ventilation, or a combination of both. Interior areas 
designated for smoking within the building <nl>must<ol> [shall] have mechanical 
ventilation directed to the exterior to remove smoke at the rate of 10 air 
changes per hour. 
(10) In addition to janitor closet(s) called for in specific departments of 
large facilities, other janitor closet(s) <nl>must<ol> [shall] be provided 
throughout the facility to maintain a clean and sanitary environment. Each 
janitor closet <nl>must<ol> [shall] have a service sink and forced air 
ventilation ducted to the outside. 
(11) A public/staff toilet, i.e. commode and lavatory, complying with 
accessibility standards is required for every large facility up to and including 
60 beds. Facilities over 60 beds <nl>must<ol> [shall] have separate public and 
staff toilets in addition to the staff toilet(s) required for the dietary staff. 
(12) If the facility provides linens to the residents, the quantity of available 
linen <nl>must<ol> [shall] meet the sanitary and cleanliness needs of the 
residents. Clean linens <nl>must<ol> [shall] be stored in a clean area. 
(h) General safety features. 
(1) The building <nl>must<ol> [shall] be kept in good repair; electrical, 
heating, and cooling <nl>must<ol> [shall] be maintained in a safe manner. 
<nl>DHS<ol> [The department] may require the facility sponsor or licensee to 
submit evidence to this effect, consisting of a report from the fire marshal, 
city/county building official having jurisdiction, licensed electrician, or a 
registered professional engineer. Use of electrical appliances, devices, and 
lamps <nl>must<ol> [shall] be such as not to overload circuits or cause 
excessive lengths of extension cords. 
<nl>(2)<ol> Existing furnace and water heater installations may be continued in 
service, subject to approval by DHS. 
<nl>(3)<ol> [(2)]<nl> In large facilities, all<ol> [All] draperies and other 
window coverings in public or common areas, and in bedrooms and/or living units 
in which smoking is permitted <nl> must <ol>[shall] be flame resistant. 
<nl>(4)<ol> [(3)] <nl>In large facilities, all <ol>[All] new floor carpet 
installed in public or common spaces after the initial inspection by the 
department <nl>must<ol> [shall] be Class I or II based on the "Critical Radiant 
Flux" ratings. Proper documentation must be provided. 
<nl>(5)<ol> [(4)] Open flame heating devices are prohibited. All fuel burning 
heating devices <nl>must <ol>[shall ] be vented. Working fireplaces are 
acceptable if of safe design and construction and if screened or otherwise 
enclosed. 
<nl>(6)<ol> [(5)] There <nl>must<ol> [shall] be at least one telephone in the 
facility available to both staff and residents for use in case of an emergency. 
Emergency telephone numbers, including at least fire, police, ambulance, EMS, 
and poison control center, <nl>must<ol> [shall] be posted conspicuously at or 
near the telephone. 
<nl>(7)<ol> [(6)] An initial pressure test of facility gas lines from the meter 
<nl>must<ol> [shall] be provided. Additional pressure tests will be required 
when the facility has major renovations or additions where the gas service is 
interrupted. All gas heating systems <nl>must<ol> [shall] be checked prior to 
the heating season for proper operation and safety by persons who are licensed 
or approved by the State of Texas to inspect such equipment. A record of this 
service <nl>must<ol> [shall] be maintained by the facility. Any unsatisfactory 
conditions <nl>must<ol> [shall] be corrected promptly. 
<nl>(8)<ol> [(7)] Exterior and interior stairs <nl>must<ol> [shall] have 
handrails that are firmly secured to prevent falls. 
<nl>(9)<ol> [(8)] Cooling and heating <nl> must<ol> [shall] be provided for 
occupant comfort. Conditioning systems <nl>must<ol> [shall] be capable of 
maintaining the comfort ranges of 68 degrees Fahrenheit to 82 degrees Fahrenheit 
in resident-use areas.
<nl>(10)<ol> [(9)] The Illumination Engineering Society of North America 
recommendations <nl>must<ol> [shall] be followed to achieve proper illumination 
characteristics and lighting levels throughout the facility. Minimum 
illumination <nl>must<ol> [shall ] be 10-foot candles in resident rooms during 
the day and 20 foot candles in corridors, staff stations, dining rooms, lobbies, 
toilets, bathing facilities, laundries, stairways and elevators during the day. 
Illumination requirements for these areas apply to lighting throughout the space 
and should be measured at approximately 30 inches above the floor anywhere in 
the room. Minimum illumination for medication preparation or storage areas, 
kitchens, and staff station desks <nl> must<ol> [shall] be 50-foot candles 
during the day. Illumination requirements for these areas apply to the task 
performed and should be measured on the tasks. 
<nl>(11)<ol> [(10)] All buildings three floors or higher and in facilities that 
provide services, treatment, or social activities on floors above or below the 
level of discharge and which house mobility impaired residents <nl>must<ol> 
[shall] have a passenger elevator. The lowest level of discharge will be the 
first floor for determining floor level. 
<nl>(12)<ol> [(11)] Floor, ceiling, and wall finish materials <nl>must<ol> 
[shall] be complete and in place to provide a sanitary and structurally safe 
environment. 
(i) Portable fire extinguishers. Portable fire extinguishers must be provided 
and maintained to comply with the provisions of the National Fire Protection 
Association (NFPA) 10. This includes such items as type of extinguishers (A, B, 
or C), location and spacing, mounting heights, monthly inspections by staff, 
yearly inspections by a licensed agent (with any necessary servicing), and 
hydrostatic testing as recommended by the manufacturer. 
(1) Extinguishers in resident corridors must be spaced so that travel distance 
is not more than 75 feet. The minimum size of extinguishers must be either 2 1/2 
gallon for water type or five pound for ABC type. <nl> In large facilities, at 
least one portable Underwriters Laboratory (U.L.) or factory mutual (F.M.)- 
approved five-pound Class B:C dry chemical fire extinguisher, rechargeable type, 
is required in each laundry, kitchen and walk-in mechanical room.<ol> 
(2)-(7) (No change.) 
(j) (No change.) 
(k) Accessibility provisions. 
[(1)] The physical plant of all large facilities and all other facilities 
housing residents with physical disabilities and/or mobility impairments must 
comply with applicable federal, state and local requirements for persons with 
disabilities. 
[(2) A minimum of 5.0 percent of the resident living units of large facilities 
shall meet the accessibility provisions.
(l) Resident accommodations. 
(1) Resident bedrooms. 
(A) Bedroom usable floor space for Type A facilities <nl> must<ol> [shall] not 
be less than 80 square feet for a one-bed room and not less than 60 square feet 
per bed for a multiple bed room. A bedroom <nl> must<ol> [shall] be not less 
than eight feet in the smallest dimension, unless specifically approved 
otherwise by the department. Bedrooms for persons with physical disabilities 
and/or mobility impairment <nl>must <ol> [shall] meet accessibility standards 
for access around the bed or beds, i.e., minimum of 3'-0" clear width for access 
aisles.
(B) Bedroom usable square footage for Type B facilities <nl> must<ol> [shall] be 
not less than 100 square feet per bed for a single-bed room and not less than 80 
square feet per bed for a multiple-bed room. Bedrooms for persons with physical 
disabilities and/or mobility impairment <nl> must<ol> [shall] meet accessibility 
standards for access around the bed or beds, i.e., minimum of 3'-0" clear width 
for access aisles. A bedroom <nl> must<ol> [shall] not be less than ten feet in 
the smallest dimension unless specifically approved otherwise by <nl>DHS<ol> 
[the department
(C) (No change.) 
(D) No more than four beds <nl>must<ol> [shall] be in a bedroom, and not more 
than 50% of the beds <nl>must<ol> [shall] be in bedrooms of three or more. 
(E) Each bedroom <nl>must<ol> [shall] have at least one operable window with 
outside exposure. The window sill <nl>must <ol> [shall] be no higher than 44" 
from the floor and <nl>must <ol> [shall] be at or above grade level. The window 
will be operable from the inside, without the use of tools or special devices, 
and provide an operable section with a clear opening of not less than 5.7 square 
feet (minimum width of 20" x 41.2" high and minimum height of 24" x 34.2" wide). 
Windows required for evacuation will not be blocked by bars, shrubs, or any 
obstacle that would impede evacuation. Exceptions are as follows. 
(i) In large Type B facilities, the window <nl>must permit the venting of 
products of combustion in accordance with the Life Safety Code for Healthcare 
Occupancy <ol>[sill height from the floor shall be no more than 36"]. 
[(ii) In large Type B facilities, the bedroom window size shall not be less than 
8% of the bedroom size.] 
<nl>(ii)<ol> [(iii)] In [small] existing <nl> buildings <ol>[facilities], if the 
window is not required for the secondary means of escape, the window size and 
sill height requirements will not apply provided the <nl>windows meet the 
Uniform Building Code requirements or local building code <ol>[primary means of 
escape for each sleeping room is not exposed to the common living spaces, such 
as the living room, dining room and kitchen and the bedroom has an operable 
window for view and ventilation]. 
(F) In the event the resident does not provide his or her own furnishings, the 
facility must provide for each resident a bed with mattress, chair, table or 
dresser, and enclosed closet space for clothing and personal belongings. Drawer 
space <nl>must<ol> [shall] be provided. Furnishings provided by the facility 
must be maintained in good repair. 
(G) All resident rooms <nl>must<ol> [shall] open upon an exit, corridor, living 
area, or public area and <nl>must<ol> [shall] be arranged for convenient 
resident access to dining and recreation areas. 
(H) A staff or attendant area <nl>must<ol> [shall] be provided on each floor or 
in each separate building. The area <nl> must<ol> [shall] consist of a desk or 
writing surface and telephone. An exception is that Type A facilities, two-story 
or less in height, with separate buildings grouped together, and connected by 
covered walks, need not have staff or attendant areas on each floor or in each 
building, provided that the areas are not more than 200 feet walking distance 
from the furthest resident living unit. The areas must have a communication 
system and fire alarm annunciation indicating the units served. 
(I) Facilities which consist of two or more floors or separate buildings 
<nl>must<ol> [shall] have a communication system from each resident living unit 
to a central staff location. This communication system may be a direct 
telephone, nurse call, or intercom. 
(2) Resident toilet and bathing facilities. 
(A) All bedrooms <nl>must<ol> [shall] be served by separate private, connecting, 
or general toilet rooms for each sex (if facility houses both sexes). General 
toilet room or bathing room <nl>must <ol> [shall] be accessible from a corridor 
or public space. A lavatory <nl>must<ol> [shall] be readily accessible to each 
water closet. At least one water closet, lavatory, and bathing unit <nl> 
must<ol> [shall] be provided on each sleeping floor accessible to residents of 
that floor. 
(B) (No change.) 
(C) Privacy partitions and/or curtains <nl>must<ol> [shall] be provided at water 
closets and bathing units in rooms for multi-resident use. 
(D) Tubs and showers <nl>must<ol> [shall] have non-slip bottoms or floor 
surfaces, either built-in or applied to the surface.
(E) (No change.) 
(F) Towels, soap, and toilet tissue <nl>must<ol> [shall] be available at all 
times for individual resident use.
(3) Resident living areas. 
(A) Social-diversional spaces such as living rooms, day rooms, lounges, sun 
rooms, etc., <nl>must<ol> [shall] be provided and have appropriate furniture. A 
minimum of 120 square feet <nl>must<ol> [shall] be provided in at least one 
space regardless of number of residents. This space must have exterior windows 
providing a view of the outside. 
(B) The total space requirement for social-diversional areas <nl> must<ol> 
[shall] be provided on a sliding scale as follows: 
Figure: 40 TAC 92.62(l)(3)(B)
(C) (No change.) 
(4) Resident dining areas. 
(A) A dining area <nl>must<ol> [shall] be provided and have appropriate 
furnishings. A minimum of 120 square feet <nl>must<ol> [shall] be provided in at 
least one space, regardless of number of residents. This space must have 
exterior windows providing a view of the outside. 
(B) Access to a dining area from the resident living units or bedrooms 
<nl>must<ol> [shall] be covered. 
(C) The total space requirement for a dining area <nl>must<ol> [shall] be 
provided on a sliding scale as follows:
Figure: 40 TAC 92.62(l)(4)(C)
(D) (No change.) 
(5) Storage areas. The facility <nl>must<ol> [shall] provide sufficient separate 
storage spaces or areas for the following: 
(A) (No change.) 
(B) locked areas for medications and medical supplies. Poisons <nl> must<ol> 
[shall] be stored in a locked area and separate from all medications and 
preparation; 
(C)-(I) (No change.) 
(6) Kitchen. 
(A) The facility <nl>must<ol> [shall] have a kitchen or dietary area to meet the 
general food service needs of the residents. It <nl>must<ol> [shall] include 
provisions for the storage, refrigeration, preparation, and serving of food; for 
dish and utensil cleaning; and for refuse storage and removal. Exception: Food 
may be prepared off-site or in a separate building provided that the food is 
served at the proper temperature and transported in a sanitary manner. 
(B) Kitchens (main/dietary) for [large] facilities <nl> serving 17 or more non-
employees per meal, on a routine basis, must<ol> [shall] be as follows. 
(i) Kitchens will be evaluated on the basis of their performance in the sanitary 
and efficient preparation and serving of meals to residents and compliance with 
provisions covering dietary service in sec.92.41(h)(18) of this title (relating 
to Standards for Personal Care Facilities). 
(I) Consideration <nl>must<ol> [shall] be given to planning for the type of 
meals served, the overall building design, the food service equipment, 
arrangement, and the work flow involved in the preparation and delivery of food. 
(II) Plans <nl>must<ol> [shall] include a detailed kitchen layout designed by a 
registered or licensed dietitian or architect having knowledge in the design of 
food service operations. 
(ii) Kitchens <nl>must<ol> [shall] be designed so that room temperature, at peak 
load (summertime), <nl>must<ol> [shall] not exceed [a temperature of] 85 degrees 
Fahrenheit measured over the room at the five foot level. The amount of supply 
air <nl> must<ol> [shall] take into account the large quantities of air that may 
be exhausted at the range hood and dishwashing area. 
(iii) Facilities for washing and sanitizing dishes and cooking utensils 
<nl>must<ol> [shall] be provided. The kitchen <nl> must<ol> [shall] contain a 
multi-compartment pot sink large enough to immerse pots and pans, and a 
mechanical dishwasher for washing and sanitizing dishes. Separation of soiled 
and clean dish areas <nl>must<ol> [shall] be maintained, including air flow. 
(iv) A vegetable preparation sink <nl>must<ol> [shall] be provided. It 
<nl>must<ol> [shall] be separate from the pot sinks. 
(v) A supply of hot and cold water <nl>must<ol> [shall] be provided. Hot water 
for sanitizing purposes <nl>must<ol> [shall] be 180 degrees Fahrenheit or the 
manufacturer's suggested temperature for chemical sanitizers. 
(vi) The kitchen <nl>must<ol> [shall] be provided with a hand-washing lavatory 
in the food preparation area with hot and cold water, soap, towel dispenser, and 
waste receptacle. The dish room area <nl> must<ol> [shall] have ready access to 
a handwashing lavatory.
(vii) Staff rest room facilities with lavatory <nl>must<ol> [shall] be directly 
accessible to kitchen staff without traversing resident use areas. The rest room 
<nl>must<ol> [shall] not open directly into the kitchen (i.e., provide a 
vestibule). An exception is that staff rest rooms in existing facilities must be 
provided, but may be located outside of the kitchen area. 
(viii) Janitorial facilities <nl>must<ol> [shall] be provided exclusively for 
the kitchen and <nl>must<ol> [shall] be located in the kitchen area. An 
exception is that Janitorial closets in existing facilities may be located 
outside of the kitchen area provided sanitary procedures are used to reduce the 
possibility of cross-contamination. 
(ix) Non-absorbent smooth finishes or surfaces <nl>must<ol> [shall] be used on 
kitchen floors, walls and ceilings. Such surfaces <nl> must<ol> [shall] be 
capable of being routinely cleaned and sanitized to maintain a healthful 
environment. Counter and cabinet surfaces, inside and outside, <nl>must<ol> 
[shall] also have smooth, cleanable, non-porous finishes. 
(x) Doors between kitchen and dining or serving areas <nl> must<ol> [shall] have 
1/4- inch fixed wire glass view panel mounted in a steel frame. 
(xi) A garbage can or cart washing area with drain and hot water <nl>must<ol> 
[shall] be provided either on the interior or exterior of the facility. 
(xii) Floor drains <nl>must<ol> [shall] be provided in the kitchen and 
dishwashing areas. Exception: Floor drains are not required in existing 
facilities provided the floors are kept clean. 
(xiii) A commercial range <nl>must<ol> [shall] be provided and equipped with a 
commercial range hood and exhaust designed and installed in accordance with NFPA 
96. <nl>Small facilities with residential ranges may have residential range 
hoods, if they meet the Uniform Building Code (or local building code).<ol> 
(xiv) Grease traps <nl>must<ol> [shall] be provided as required. 
(C) Food storage areas for large facilities <nl>must<ol> [shall] be as follows. 
(i) Food storage areas <nl>must<ol> [shall] provide for storage of a four-day 
minimum supply of non-perishable foods at all times. 
(ii) Shelves <nl>must<ol> [shall] be adjustable wire type. An exception is that 
existing facilities with wood shelves may continue to use the shelves provided 
they are kept sealed and clean. 
(iii) (No change.) 
(iv) <nl>Food must not<ol> [No foods shall] be stored on the floor. Dollies, 
racks, pallets, or wheeled containers may be used to elevate foods not stored on 
shelving. 
(v) Dry foods storage <nl>must<ol> [shall] have an effective venting system to 
provide for positive air circulation. 
(vi) The maximum room temperature for food storage <nl>must <ol> [shall] not 
exceed 85 degrees Fahrenheit at any time. The measurement <nl>must<ol> [shall] 
be taken at the highest food storage level, but not less than five feet from the 
floor. 
(vii) (No change.) 
(D) Auxiliary serving kitchens (not contiguous to food preparation/serving area) 
<nl>must<ol> [shall] be as follows. 
(i) Where service areas other than the kitchen are used to dispense foods, these 
<nl>must<ol> [shall] be designated as food service areas and <nl>must<ol> 
[shall] have equipment for maintaining required food temperatures while serving. 
(ii) Separate food service areas <nl>must<ol> [shall] have handwashing 
facilities as part of the food service area. 
(iii) Finishes of all surfaces, except ceilings, <nl>must <ol> [shall] be the 
same as those required for dietary kitchens or comparable areas. 
(7) Laundry/linen services. 
(A) A large personal care facility which co-mingles and processes laundry on-
site in a central location <nl>must<ol> [shall] comply with the following. 
(i) The laundry <nl>must<ol> [shall] be separated and provided with sprinkler 
protection if located in the main building. (Separation <nl> must<ol> [shall] 
consist of a one-hour fire rated partition carried to the underside of the floor 
or roof deck above.) Access doors <nl>must <ol> [shall] be from the exterior or 
interior non-resident use areas, such as a small vestibule or service corridor. 
(ii) The laundry <nl>must<ol> [shall] be provided with the following physical 
features: 
(I) a soiled linen receiving, holding, and sorting room with a floor drain and 
forced exhaust to the exterior which <nl>must<ol> [shall] operate at all times 
there is soiled linen being held in this area. (This may be combined with the 
washer section.); 
(II)-(VI) (No change.) 
(B) If linen is processed off the site, the following <nl> must<ol> [shall] be 
provided on the premises: 
(i)-(ii) (No change.) 
(C) Resident-use laundry, if provided, <nl>must<ol> [ shall] utilize residential 
type washers and dryers. If more than three washers and three dryers are located 
in one space, the area <nl>must<ol> [shall] be one-hour fire separated or 
provided with sprinkler protection. sec.92.63. Construction and Initial Survey 
of Completed Construction. 
(a) Construction phase. 
(1) The Texas Department of Human Services (DHS), <nl>Long Term Care-Regulatory, 
Licensing <ol>[Architectural] Section in Austin, Texas, must be notified in 
writing of construction start. 
(2) All construction <nl>must<ol> [shall] be done in accordance minimum 
licensing requirements. It is the sponsor's responsibility to employ qualified 
personnel to prepare the contract documents for construction of a new facility 
or remodeling of an existing facility. Contract documents for additions and 
remodeling and for the construction of an entirely new facility must be prepared 
by an architect licensed by the Texas State Board of Archi- tectural Examiners. 
Drawings must bear the seal of the architect. Certain parts of final plans, 
designs, and specifications must bear the seal of a registered professional 
engineer approved by the State Board of Registration for Professional Engineers 
to operate in Texas. These certain parts include sheets and sections covering 
structural, electrical, mechanical, and sanitary engineering. 
(A) Remodeling is the construction, removal, or relocation of walls and 
partitions; the construction of foundations, floors, or ceiling-roof assemblies; 
the expanding or altering of safety systems (including, but not limited to, 
sprinkler, fire alarm, and emergency systems)[; or the conversion of space in a 
facility to a different use]. 
(B) (No change.) 
(b) (No change.) 
(c) Initial survey of completed construction. 
(1) Upon completion of construction, including grounds and basic equipment and 
furnishings, <nl>an initial architectural<ol> [a final construction] inspection 
[(initial survey)] of the facility, including additions or remodeled areas, is 
required to be performed by <nl>DHS<ol> [the department (architectural section)] 
prior to occupancy. [A minimum of three weeks advance notice is needed.] The 
completed construction <nl>must<ol> [shall] have the written approval of the 
local authorities having jurisdiction, including the fire marshal, health 
department, and building inspector. 
<nl>(2)<ol> The Licensure Section, Long Term Care-Regulatory, must be notified 
of completion of construction or pending completion in order to facilitate the 
initial architectural inspection. DHS will schedule an inspection as soon as 
possible. 
<nl>(3)<ol> [(2)] After the completed construction has been surveyed by [a 
represen- tative of the architectural section of] <nl>DHS <ol>[the department] 
and found acceptable, this information will be conveyed to the licensing officer 
of <nl>DHS<ol> [the department] as part of the information needed to issue a 
license to the facility. In the case of additions or remodeling of existing 
facilities, a revision or modification to an existing license may be necessary. 
Note that the building, grades, drives, and parking must essentially be 100% 
complete at the time of this initial visit for occupancy approval and licensing, 
including basic furnishings and operational needs. A facility may accept up to 
three residents between the time it receives initial approval from the 
architectural section and the time the license is issued. 
<nl>(4)<ol> [(3)] The following documents must be available to DHS's surveyor at 
the time of the survey of the completed building: 
(A)-(C) (No change.) 
(D) approval of the completed sprinkler system installation by the designing 
engineer. A copy of the material list and test certification <nl> must<ol> 
[shall] be available; 
(E)-(F) (No change.) 
(G) a written statement from an architect/engineer stating that<nl>, from 
periodic onsite observation visits, the facility as constructed is, to the best 
of his/her knowledge and belief, in substantial compliance with his/her 
construction documents, the Life Safety Code, DHS licensure standards, and local 
codes <ol>[he certifies that the building was constructed to meet NFPA 101, Life 
Safety Code, and all locally applicable codes, and that the facility is in 
substantial conformance with minimum licensing requirements]; and 
(H) (No change.) 
(d) Nonapproval of new construction. 
(1)-(2) (No change.) 
(3) Copies of reduced size floor plans on an 8 1/2 inch by 11 inch sheet 
<nl>must<ol> [shall] be submitted in duplicate to the department for record/file 
use and for the facility's use and for facility's use for evacuation plan, fire 
alarm zone identification, etc. The plan <nl> must<ol> [shall] contain basic 
legible information such as scale, room usage names, actual bedroom numbers, 
doors, windows, and any other pertinent information. 
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 March 2, 1998.
TRD-9803000
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 43789-3765

SUBCHAPTER E.Inspections, Surveys, and Visits
40 TAC 92.81, 92.82
The amendments are proposed under the Health and Safety Code, Chapter 247, which 
authorizes the department to license personal care facilities, and Human 
Resources Code, Title 2, Chapter 22, which authorizes the department to 
administer public assistance programs. 
The amendments implement the Health and Safety Code, sec.sec.247.001- 247.066, 
and the Human Resources Code, sec.sec.22.001-22.030. 

sec.92.81.Inspections and Surveys. 
(a) (No change.) 
(b) An inspection may be conducted by an individual surveyor or by a team, 
depending on the purpose of the inspection or survey, size of facility, [levels 
of care] and service provided by the facility, and other factors. 
(c)-(d) (No change.) 
(e) Certain visits may be announced, including, but not limited to, 
[consultation visits to determine how a physical plant may be expanded or 
upgraded and visits to determine the progress of physical plant construction or 
repairs, equipment installation or repairs, or systems installation or repairs 
or] conditions when certain emergencies arise, such as fire, windstorm, or 
malfunctioning or nonfunctioning of electrical or mechanical systems. 
(f) The facility must make all [resident and employee] books, records, and other 
documents maintained by or on behalf of a facility accessible to DHS upon 
request. 
(1)-(4) (No change.) 

sec.92.82.Determinations and Actions Pursuant to Inspections. 
(a) (No change.) 
(b) Violations of regulations will be listed on forms designed for the purpose 
of the inspection <nl>and will include a specific reference in the Personal Care 
Standards for the violations cited<ol>. 
(c) (No change.) 
(d) At the conclusion of an inspection or survey, the violations will be 
discussed in an exit conference with the facility's management. A written list 
of the violations will be left with the facility at the time of the exit 
conference<nl>.<ol> [;] <nl>If<ol> any additional <nl> violations are cited<ol> 
[violation that may be determined] during review of field notes or preparation 
of the official final list (when the official final list was not issued at the 
exit conference)<nl>, the facility will be given an additional exit conference 
regarding the newly-cited violations <ol> [will be communicated to the facility 
in writing within ten workdays of the exit conference, and the facility will 
have ten workdays to reply before the additional violation is made a part of the 
permanent record. Copies of any narratives or similar papers written to further 
describe the conditions will be furnished to the facility]. 
<nl>(e)<ol> <nl>Upon receipt of the final statement of violations, the facility 
will have ten days to submit an acceptable plan of correction to the regional 
director. <ol>
<nl>(f)<ol> [(e)] A clear and concise summary in nontechnical language of each 
licensure inspection, inspection of care, and/or complaint investigation will be 
provided by DHS. That summary will be in a form outlining significant violations 
noted at the time of the visit, but will not include names of residents, staff, 
or any other statement that would identify individual residents or other 
prohibited information under general rules of public disclosure. The summary 
will be provided to the facility at the time the report of contact or similar 
document is provided. 
<nl>(g)<ol> [(f)] If the provider and the inspector cannot resolve a dispute 
regarding a violation of regulations, the provider <nl> is entitled to<ol> [may 
seek] an informal dispute resolution <nl> (IDR)<ol> at the regional level 
<nl>for all violations. For a violation which resulted in an adverse action, the 
provider is entitled to an IDR at either the regional or state office level.<ol>
<nl>(1)<ol> <nl>A written request and all supporting documentation must be 
submitted to the Regional Director, Long Term Care-Regulatory, for a regional 
IDR, or to Long Term Care- Regulatory, Texas Department of Human Services 
(TDHS), P.O. Box 149030 (E-341), Austin, TX 78714-9030, for a central office 
IDR, no later than the tenth calendar day after receipt of the official 
statement of deficiencies. <ol>
<nl>(2)<ol> <nl>DHS will complete the IDR process no later than the 30th 
calendar day after receipt of a request from a facility.<ol>
<nl>(3)<ol> <nl>Deficiencies deemed invalid in an IDR will be so noted in DHS's 
records. <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 March 2, 1998.
TRD-9802999
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER F.Abuse, Neglect and Exploitation; Complaint and Incident Reports and 
Investigations
40 TAC sec.92.101
(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 Human Services or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Health and Safety Code, Chapter 247, which 
authorizes the department to license personal care facilities, and Human 
Resources Code, Title 2, Chapter 22, which authorizes the department to 
administer public assistance programs. 
The repeal implements the Health and Safety Code, sec.sec.247.001-247.066, and 
the Human Resources Code, sec.sec.22.001-22.030. 
sec.92.101.Definitions.
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 March 2, 1998.
TRD-9802998
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

40 TAC 92.101-92.103, 92.106
The amendments and new section are proposed under the Health and Safety Code, 
Chapter 247, which authorizes the department to license personal care 
facilities, and Human Resources Code, Title 2, Chapter 22, which authorizes the 
department to administer public assistance programs. 
The amendments and new section implement the Health and Safety Code, 
sec.sec.247.001-247.066, and the Human Resources Code, sec.sec.22.001- 22.030. 

sec.92.101. Definitions of "abuse," "neglect," and "exploitation."
For purposes of this subchapter, the definitions of "abuse," "neglect," and 
"exploitation" are those found in Chapter 48, Human Resources Code, and in 
reference to children, those found in the Family Code, sec.261.001. 

sec.92.102. Abuse, Neglect, or Exploitation Reportable to the Texas Department 
of Human Services <nl>(DHS)<ol> by Facilities.
(a) Any facility staff who has reasonable cause to believe that a resident is in 
a state of abuse, neglect, or exploitation must report the abuse, neglect, or 
exploitation <nl>to DHS's state office at (512) 438-2629 and to follow the 
facility's internal policies regarding abuse, neglect, or exploitation.<ol> 
<nl>(b)<ol> <nl> The following information must be reported to DHS: <ol>
<nl>(1)<ol> <nl>name, age, and address of the resident; <ol>
<nl>(2)<ol> <nl> name and address of the person responsible for the care of the 
resident, if available; <ol>
<nl>(3)<ol> <nl> nature and extent of the elderly or disabled person's 
condition; <ol>
<nl>(4)<ol> <nl>basis of the reporter's knowledge; and <ol>
<nl>(5)<ol> <nl> any other relevant information.  <ol>
<nl>(c)<ol> [(b) Reports of abuse, neglect, or exploitation are to be made to 
DHS's state office at (512) 834-6778. The person reporting must make an oral 
report immediately on learning of the alleged abuse or neglect.] The facility 
must <nl>investigate the alleged abuse or neglect and <ol> send a written report 
of the investigation to <nl>DHS's state office <ol> no later than the fifth 
calendar day after the oral report. 
[(c) Each report must contain the:]
[(1) name, age, and address of the resident;
[(2) name and address of the person responsible for the care of the resident, if 
available;] 
[(3) nature and extent of the elderly or disabled person's condition; and] 
[(4) basis of the reporter's knowledge.

sec.92.103. Complaint Investigation. 
(a) A complaint is any allegation received by the Texas Department of Human 
Services <nl>(DHS)<ol> [(department)] <nl>regarding <ol> [from a source other 
than facility staff. Such allegations include, but are not limited to,] abuse, 
neglect, <nl>or<ol> exploitation <nl> of a resident<ol>, or <nl>a<ol> violation 
of state [or federal] standards. 
(b) <nl>DHS must give the<ol> [The] facility [will be furnished by the 
department with a] notification of the complaint received and a summary of the 
complaint, without identifying the source of the complaint. 

sec.92.106.General Provisions. 
(a) Confidentiality. All reports, records, and working papers used or developed 
by the Texas Department of Human Services <nl>(DHS)<ol> [(department)] in an 
investigation are confidential, and may be released only as provided in this 
subsection. 
(1) Completed written investigation reports on cases concluded to be abuse or 
neglect <nl>must<ol> [shall] be furnished to the district attorney and 
appropriate law enforcement agency. <nl>DHS<ol> [The department] also may 
release these reports to any other public agency <nl>DHS<ol> [the department] 
deems appropriate to the investigation. 
(2)-(3) (No change.) 
(b) Immunity. A person who reports suspected instances of abuse or neglect 
[shall], in the absence of bad faith or malicious conduct, <nl>will<ol> be 
immune from civil or criminal liability which might have otherwise resulted from 
making the report. Such immunity <nl> extends <ol>[shall extend] to 
participation in any judicial proceeding resulting from the report. 
(c) Privileged communications. In a proceeding regarding a report or 
investigation conducted under this subchapter, evidence <nl>must <ol> [shall] 
not be excluded on a claim of privileged communication except in the case of a 
communication between an attorney and a client. 
(d) Central registry. <nl>DHS maintains<ol> [The department shall maintain] a 
central registry of reported cases of abuse and neglect at the central office in 
Austin. 
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 March 2, 1998.
TRD-9802997
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER G.Miscellaneous Provisions
The amendments are proposed under the Health and Safety Code, Chapter 247, which 
authorizes the department to license personal care facilities, and Human 
Resources Code, Title 2, Chapter 22, which authorizes the department to 
administer public assistance programs. 
The amendments implement the Health and Safety Code, sec.sec.247.001-247.066, 
and the Human Resources Code, sec.sec.22.001-22.030.

sec.92.124. Procedures for Inspection of Public Records.
(a) (No change.) 
(b) Long Term Care - Regulatory, Texas Department of Human Services 
<nl>(DHS)<ol> [(department)], will be responsible for the maintenance and 
release of records on licensed facilities, and other related records. 
(c) The application for inspection of public records is subject to the following 
criteria. 
(1) The application <nl>must<ol> [shall] be made to Long Term Care - Regulatory, 
Texas Department of Human Services, 8430 Wall Street, Austin, Texas 78754. 
(2) The requestor <nl>must<ol> [shall] identify himself/herself. 
(3) The requestor <nl>must <ol>[shall] give reasonable prior notice of the time 
for inspection and/or copying of records. 
(4) The requestor <nl>must<ol> [shall] specify the records requested. 
(5) (No change.) 
(6) The bureau <nl>must<ol> [shall] provide the requested records as soon as 
possible. However, if the records are in active use, or in storage, or time is 
needed for proper deidentification or preparation of the records for inspection, 
the bureau <nl>must<ol> [shall] so advise the requestor and set an hour and date 
within a reasonable time when the records will be available. 
(d)-(e) (No change.) 
(f) Charging for copies of records <nl>must<ol> [shall] be in accordance with 
the following criteria. 
(1) (No change.) 
(2) If the requestor wants to request copies of a record, the requestor will 
specify in writing the records to be copied on an appropriate bureau form, and 
the bureau will complete the form by specifying the cost of the records which 
the requestor <nl>must <ol>[shall] pay in advance. Checks and other instruments 
of payment will be made payable to the Texas Department of Human Services. 
(3) Any expenses for standard-size copies incurred inthe reproduction, 
preparation, or retrieval of records <nl>must<ol> [ shall] be borne by the 
requestor on a cost basis in accordance with costs established by the State 
Purchasing and General Services Commission or the department for office machine 
copies. 
(4)-(5) (No change.) 
(g) (No change.) 

sec.92.125. Resident's Bill of Rights and Provider Bill of Rights. 
(a) Resident's bill of rights. 
(1) Each personal care facility <nl>must<ol> [shall] post the resident's bill of 
rights, as provided by the <nl>Texas Department of Human Services (DHS) 
<ol>[department], in a prominent place in the facility and be written in the 
primary language of each resident.
(2) (No change.) 
(3) The resident's bill of rights must provide that each resident in the 
personal care facility has the right to: 
(A)-(C) (No change.) 
(D) be treated with respect, consideration, and recognition of his or her 
dignity and individuality. A resident <nl>must <ol>[shall] receive personal care 
and private treatment in a safe and decent living environment. 
(E)-(F) (No change.) 
(G) be encouraged and assisted in the exercise of his or her rights. A resident 
may present grievances on behalf of the resident or others to the manager, state 
agencies, or other persons without threat of reprisal in any manner. The person 
providing services <nl>must<ol> [shall] develop procedures for submitting 
complaints and recommendations by residents and for assuring a response by the 
person providing services; 
(H)-(J) (No change.) 
(K) manage his or her financial affairs, or <nl>must<ol> [shall] be given at 
least a quarterly accounting of financial transactions made on his or her behalf 
by the facility should the facility accept his or her written delegation of this 
responsibility to the facility for any period of time in conformance with state 
law; 
(L)-(X) (No change.) 
(Y) not be transferred or discharged, except in an emergency situation. The 
responsible party of the resident and the attending physician <nl> must<ol> 
[shall] be notified immediately; 
(Z)-(BB) (No change.) 
(b) Provider's bill of rights. 
(1) Each personal care facility <nl>must<ol> [shall] post a providers' bill of 
rights in a prominent place in the facility.
(2) The providers' bill of rights must provide that a provider of personal care 
services has the right to: 
(A)-(B) (No change. ) 
(C) terminate a contract immediately, after notice to the department, if the 
provider finds that a resident creates a serious or immediate threat to the 
health, safety, or welfare of other residents of the personal care 
facility<nl>.<ol> [;] <nl>During evening hours and on weekends or holidays, 
notice to DHS must be made to 1-800-458-9858;<ol>
(D)-(J) (No change.)

sec.92.127. Required Postings.
Each facility <nl>must<ol> [shall] prominently and conspicuously post for 
display in a public area of the facility that is readily available to residents, 
employees, and visitors: 
(1)-(2) (No change.) 
(3) a notice in the form prescribed by the department stating that inspection 
and related reports are available at the facility for public inspection and 
providing the department's toll- free telephone number that may be used to 
obtain information concerning the facility; [and] 
(4) a copy of the most recent inspection report relating to the 
facility<nl>;<ol> [.] 
<nl>(5)<ol> <nl>Resident Bill of Rights; and <ol>
<nl>(6)<ol> <nl>Provider Bill of Rights. <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 March 2, 1998.
TRD-9802996
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

40 TAC sec.92.129
(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 Human Services or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Health and Safety Code, Chapter 247, which 
authorizes the department to license personal care facilities, and Human 
Resources Code, Title 2, Chapter 22, which authorizes the department to 
administer public assistance programs. 
The repeal implements the Health and Safety Code, sec.sec.247.001-247.066, and 
the Human Resources Code, sec.sec.22.001-22.030. 
sec.92.129. Respite Care. 
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 March 2, 1998.
TRD-9802995
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER H.Enforcement
40 TAC sec.sec.92.153-92.155
The new section and amendments are proposed under the Health and Safety Code, 
Chapter 247, which authorizes the department to license personal care 
facilities, and Human Resources Code, Title 2, Chapter 22, which authorizes the 
department to administer public assistance programs. 
The new section and amendments implement the Health and Safety Code, 
sec.sec.247.001-247.066, and the Human Resources Code, sec.sec.22.001-22.030. 

sec.92.153. Revocation. 
(a) (No change.) 
(b) In addition, DHS may revoke a license if the license holder:
(1) (No change.) 
(2) used subterfuge or other evasive means to obtain the license; [or] 
(3) concealed a material fact in the application for a license or failed to 
disclose information required in sec.92.12 of this title (relating to Applicant 
Disclosure Requirements) that would have been the basis to deny the license 
under sec.92.17 of this title (relating to Criteria for Denying a License or 
Renewal of a License)<nl>; or<ol> [<nl>(4)<ol> <nl>has violated Texas Health and 
Safety Code sec.247.021. <ol>
(c)-(e) (No change.)

sec.92.154. Unlicensed Facilities.
(a) The Texas Department of Human Services (DHS) may petition a district court 
for a temporary restraining order: 
(1) to restrain a continuing violation of the standards or licensing 
requirements if DHS finds the facility is operating without a license; or 
(2) to inspect a facility allegedly required to be licensed and operating 
without a license when admission to the facility cannot be obtained. If it is 
shown that admission to the facility cannot be obtained, the court will order 
the facility to allow DHS admission to the facility. 
(b) A person who does not possess a license for a personal care facility, as 
required by sec.247.021, Texas Health and Safety Code, is subject to referral to 
the attorney general and a civil penalty of not less than $1,000 nor more than 
$10,000 for each act of violation. Each day of a continuing violation 
constitutes a separate ground for recovery. 
(c) If the attorney general fails to take action within 30 days of referral from 
DHS, DHS will refer the case to the local district attorney, county attorney, or 
city attorney, who will file suit in district court to collect and retain the 
penalty. 
(d) Investigation and attorney's fees will not be assessed or collected by or on 
behalf of DHS or other state agency unless DHS or other state agency assesses 
and collects a penalty. 
(e) The commissioner must approve any settlement agreement to a suit brought 
against unlicensed facilities. 

sec.92.155. Emergency License Suspension and Closing Order. 
(a) (No change.) 
(b) The order suspending a license or closing a part of a facility under this 
section is immediately effective on the date the license holder receives <nl>a 
hand-delivered<ol> written notice or on a later date specified in the order. 
[Written notice includes notice by facsimile transmission.] 
(c)-(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 March 2, 1998.
TRD-9802994
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: May 15, 1998
For further information, please call: (512) 438-3765

CHAPTER 96.Certification of Long Term Care Facilities
40 TAC sec.96.6
The Texas Department of Human Services (DHS) proposes an amendment to sec.96.6, 
concerning the informal administrative review process for intermediate care 
facilities for persons with mental retardation and related conditions, in its 
Certification of Long Term Care Facilities chapter. The purpose of the amendment 
is to make available to providers one level of review by the associate 
commissioner for Long Term Care Regulatory or his state office designee. Either 
party may conduct a face-to- face, telephone, or paper review if one of the 
following termination actions is taken against the facility: 90-day termination, 
denial of certification, or invoking of the automatic cancellation clause. 
Timelines are extended to ten calendar days from receipt of the official 
statement of deficiencies. 
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 to closely align the informal review process with state law and streamline 
internal processes. The amendments to the rule address a review process that has 
no cost or impact to the small or large business provider. 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 Maxcine 
Tomlinson at (512) 438-3169 in DHS's Long Term Care Policy Section. Written 
comments on the proposal may be submitted to Supervisor, Rules and Handbooks 
Unit-174, 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 Human Resources Code, Title 2, Chapter 22, 
which authorizes the department to administer public assistance programs. 
The amendment implements the Human Resources Code, sec.sec.22.001-22.030.

sec.96.6. Informal [Administrative] Review Process for Intermediate Care 
Facilities for Persons with Mental Retardation and Related Conditions. 
(a) General. The procedure in this section shall be utilized by providers when 
there is a disagreement with surveyors' findings and/or recommendations, when 
additional written information becomes available that was not shared with the 
survey team, or when a complaint is filed relating to the conduct of the survey. 
<nl>The provider may be given a face-to-face, telephone, or paper review when 
one of the following termination actions is taken against the facility: 90-day 
termination, denial of certification, or when the automatic cancellation clause 
is invoked. If no action was taken against the facility but deficiencies were 
written, the provider will be given a paper review only. <ol>These procedures 
shall only be used if the deficiencies cited in the survey report do not pose an 
imminent threat or danger to the health and/or safety of a resident. Twenty-
three day terminations are not entitled to utilize the Informal [Administrative] 
Review process.
(b) Review process. 
(1) Exit conference. 
(A) At the time of the survey the provider will furnish any information 
requested by the surveyor. <nl>The facility staff must not wait until the exit 
conference to provide information requested earlier during the survey. 
<ol>Information needed to conduct the survey must be made available during the 
survey; however, additional information may be accepted <nl>for consideration 
<ol>at the time of the exit conference. [The facility staff must not wait until 
the exit conference to supply information requested earlier during the survey.] 
(B) At the time of the exit conference, the facility will receive written notice 
from a member of the survey team of its right to an informal [administrative] 
review. 
[(2) Regional review.] 
<nl>(C)<ol> [(A)] If there are issues which are not resolved during the exit 
conference, the administrator may make a written or faxed request for an 
informal [administrative] review with the <nl>associate commissioner for Long 
Term Care Regulatory or his state office designee <ol>[appropriate regional 
director]. The request <nl>for the review <ol>and any additional information 
must be submitted and received in the regional director's office within <nl>ten 
<ol>[ seven] calendar days after <nl>receipt of the official statement of 
deficiencies <ol>[the exit conference]. 
[(B) The Texas Department of Human Services (DHS) will not accept additional 
information or schedule a conference at the regional or state office level for 
the informal administrative review after the seventh calendar day after the exit 
conference.] 
[(C) As part of the regional review, the regional director or designee will:] 
[(i) review additional information and make a decision as to whether 
deficiencies and/or adverse action recommendations should be sustained, altered, 
revised, or deleted;] 
[(ii) upon request, meet with providers to discuss survey findings; and] 
[(iii) render a decision and notify provider of survey team/regional director's 
decision within seven calendar days of the review.] 
[(3) State office review. If the conference with the regional director does not 
resolve the issue, a written or faxed request may be made to the program 
director, ICFMR/RC department, Long Term Care - Regulatory, Texas Department of 
Human Services, for an informal administrative review. The written or faxed 
request must be submitted and received in the program director's office seven 
calendar days from the date of the regional notification.] 
[(A) As part of the state office review, the director or designee of the 
ICFMR/RC department will:] 
[(i) review only information reviewed at the regional level and make a decision 
as to whether deficiencies and/or punitive action recommendations shall be 
sustained, altered, or revised from the original finding of the survey team;] 
[(ii) upon request, hold a conference with the provider to discuss the issues 
involved; and] 
[(iii) render a decision and notify the provider of the state office decision 
within seven calendar days of the review.]
[(B) If the review at the state office does not resolve the issue(s), the 
facility or the director or designee of the ICFMR/RC department may request a 
final review from the deputy commissioner's office for long term care seven 
calendar days from the state office notification. The written or faxed request 
must be received by the deputy commissioner's office for long term care within 
seven calendar days from the date of the state office notification.] 
<nl>(2)<ol> [(4) Deputy] <nl>Associate <ol>commissioner's review. The 
<nl>associate commissioner <ol>[deputy commissioner's office] for long term care 
<nl>regulatory or his state office designee <ol>[will]: 
(A) <nl>will <ol>review all information and make an impartial decision as to 
whether deficiencies [and/or punitive action recommendations] shall be 
sustained, altered, or <nl>reversed <ol>[revised] from the original <nl>findings 
<ol>[finding] of the survey team<nl>. <ol>[;] <nl>The Texas Department of Human 
Services (DHS) will not accept additional information or schedule an informal 
review after ten calendar days following receipt of the official statement of 
deficiencies;<ol>
<nl>(B)<ol> <nl>may conduct a face-to-face, telephone, or paper review when one 
of the following actions was taken against the facility: 90-day termination, 
denial of certification, or when the automatic cancellation clause is 
invoked;<ol> 
[(B) at DHS's option, hold a conference with the provider to discuss the issues 
involved;] 
<nl>(C)<ol> <nl> will conduct a paper review only, if no action was taken 
against the facility, but deficiencies were written; <ol>
<nl>(D)<ol> <nl> may request additional information if necessary; <ol>
<nl>(E)<ol> [(C)] <nl>will <ol>determine a resolution and present the resolution 
to the <nl>associate <ol>[deputy] commissioner for long term care <nl>regulatory 
<ol>for concurrence; and 
<nl>(F)<ol> [(D)] <nl>will <ol>notify the provider of a decision before the 
<nl>forty-fifth <ol>[fortieth] day after the <nl>provider receives the official 
statement of deficiencies <ol>[exit conference]. Time frames for <nl>all 
certification <ol>actions [90-day terminations] must be adhered to by the 
facility and <nl>DHS <ol>[the department]. 
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 March 2, 1998.
TRD-9802993
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: June 1, 1998
For further information, please call: (512) 438-3765

PART II. Texas Rehabilitation Commission
CHAPTER 104.Informal and Formal Appeals by Applicants/Clients of Decisions by a 
Rehabilitation Counselor or Agency Official
40 TAC sec.104.5
The Texas Rehabilitation Commission proposes an amendment to sec.104.5, 
concerning formal appeal. The section is being amended to clarify the Texas 
Rehabilitation Commission's Formal Appeal process. 
Charles Schiesser, Chief of Staff, 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. 
Mr. Schiesser also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the clarification in the Texas Rehabilitation Commission's 
Formal Appeal process. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the section 
as proposed. 
Comments on the proposal may be submitted to Simon Y. Rodriguez, General 
Counsel, Texas Rehabilitation Commission, 4900 North Lamar Boulevard, Suite 
7300, Austin, Texas 78751. 
For further information, please contact Roger Darley, Deputy General Counsel, 
Texas Rehabilitation Commission, 4900 North Lamar Boulevard, Suite 7300, Austin, 
Texas 78751. 
The amendment is proposed under the Texas Human Resources Code, Title 7, Chapter 
111, sec.111.018 and sec.111.023, which provides the Texas Rehabilitation 
Commission with the authority to promulgate rules consistent with Title 7, Texas 
Human Resources Code.
No other statute, article, or code is affected by this proposal. 

sec.104.5.Formal Appeal.
(a) The formal appeal process commences with the filing of a Petition for 
Administrative Hearing with the Commissioner's Office for Administrative 
Hearings. <nl>The hearing must be held within 45 days of an individual's request 
for review, unless informal resolution is achieved prior to the 45th day, or the 
parties agree to a specific extension of time.<ol> 
(b) (No change.) 
(c) Impartial Hearing Officer. 
(1) (No change.) 
(2) Powers and Duties. 
(A) The IHO shall have the authority and duty to: 
(i) (No change.) 
(ii) take action to avoid unnecessary delay in the disposition of the 
proceeding;[and] 
(iii) maintain order<nl>; and<ol>[.] 
<nl>(iv)<ol> <nl> at the IHO's discretion, permit deviations from the rules and 
procedures prescribed in this section in the interest of justice or to expedite 
the proceedings. <ol>
(B)-(D) (No change.) 
(d)-(k) (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 26, 1998.
TRD-9802909
Charles Schiesser
Chief of Staff
Texas Rehabilitation Commission
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 424-4050

PART XIX. Texas Department of Protective and Regulatory Services
CHAPTER 715. Day Care Licensing
The Texas Department of Protective and Regulatory Services (TDPRS) proposes the 
repeal of sec.sec.715.231, 715.330, 715.433, and 715.501-715.507, concerning 
waiver requests, the children in care, the caregiver and family, health and 
safety, the care given to children, definitions, time limited registration, and 
inquiries, in its Day Care Licensing chapter. The purpose of the repeals is to 
delete rules that are out of date and that are substantively covered by other 
rules. For waivers and variances, sec.725.2023 (relating to Requesting the 
Waiver/Variance) covers the topic for all standards, regardless of the setting. 
Sections 715.501-715.507, standards for registered family homes, should have 
been deleted when the more recent rules became effective January 30, 1990. TDPRS 
is therefore proposing the repeal of Subchapter F, Standards for Registered 
Family Homes, at this time. 
Cindy Brown, Budget and Analysis Division Director, has determined that for the 
first five-year period the proposed sections will be in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the sections. 
Ms. Brown 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 the current rules will be clearer for the general 
public, as well as for those operators in child care who must comply with the 
rules. There will be no effect on small businesses as these repeals will enable 
the department to clarify and consolidate its regulations and will not have a 
cost to providers. There is no anticipated economic cost to persons who are 
required to comply with the proposed sections. 
Questions about the content of the proposal may be directed to Mary Panella at 
(512) 438-3246 in TDPRS's Licensing Division. Written comments on the proposal 
may be submitted to Supervisor, Rules and Handbooks Unit-144, Texas Department 
of Protective and Regulatory Services E-205, P.O. Box 149030, Austin, Texas 
78714-9030, within 30 days of publication in the Texas Register. 

SUBCHAPTER C. Standards for Kindergartens and Nursery Schools
40 TAC sec.715.231
(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 Protective and Regulatory Services or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Human Resources Code (HRC), Chapters 40 and 42, 
which describe the department's regulatory and rulemaking authority. 
The repeal implements the HRC, Chapters 40 and 42. 
sec.715.231. Waiver Request. 
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 March 2, 1998.
TRD-9802992
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER D. Standards for Schools: Grades Kindergarten and Above
40 TAC sec.715.330
(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 Protective and Regulatory Services or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Human Resources Code (HRC), Chapters 40 and 42, 
which describe the department's regulatory and rulemaking authority. 
The repeal implements the HRC, Chapters 40 and 42. 
sec.715.330. Waiver Requests. 
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 March 2, 1998.
TRD-9803007
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER E. Minimum Standards for Day Care Centers
40 TAC sec.715.433
(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 Protective and Regulatory Services or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Human Resources Code (HRC), Chapters 40 and 42, 
which describe the department's regulatory and rulemaking authority. 
The repeal implements the HRC, Chapters 40 and 42. 
sec.715.433. Waiver Request. 
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 March 2, 1998.
TRD-9803006
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER F. Standards for Registered Family Homes
40 TAC sec.sec.715.501-715.507
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Protective and Regulatory Services or in the Texas Register 
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeals are proposed under the Human Resources Code (HRC), Chapters 40 and 
42, which describe the department's regulatory and rulemaking authority. 
The repeals implement the HRC, Chapters 40 and 42. 
sec.715.501. The Children in Care. 
sec.715.502. The Caregiver and Family. 
sec.715.503. Health and Safety. 
sec.715.504. The Care Given to Children. 
sec.715.505. Definitions. 
sec.715.506. Time Limited Registration. 
sec.715.507. Inquiries. 
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 March 2, 1998.
TRD-9803005
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

CHAPTER 725. General Licensing Procedures
The Texas Department of Protective and Regulatory Services (TDPRS) proposes 
amendments to sec.sec.725.1001, 725.1403, 725.1804, 725.2002, 725.2018, 
725.2020, 725.2023, 725.2024, 725.2028, 725.2030, 725.2033, 725.2046, 725.4052, 
and 725.7001, concerning definitions, facilities exempt from licensing, 
liability insurance, exemptions, administrative licensing suspension, appeal not 
requested, requesting the waiver/variance, requesting an administrative review, 
notification of complaint investigation, findings of the complaint 
investigation, registration, regulations for registered family homes, release 
hearing for a facility employee, and facility responsibility; and proposes the 
repeal of sec.sec.725.2025 and 725.2031, concerning requirements for an advisory 
opinion and exemptions from registration, in its General Licensing Procedures 
chapter. The purpose of the proposal is to bring TDPRS rules into compliance 
with current legislation and to ensure consistency in the rules. The amendments 
to sec.sec.725.2023 and 725.2024 add a time limit for requests for 
administrative reviews. The amendment to sec.725.2033 deletes the procedure for 
issuing temporary registration to ensure that registration, as licenses and 
certificates, are not issued unless all standards, rules, and statute 
requirements are in compliance. The amendment to sec.725.7001 deletes the 
reference to harassment, which is covered by the right of the facility/family 
home to an administrative review anytime there is a question about TDPRS's right 
to access information that is believed to be outside TDPRS's authority. Cindy 
Brown, Budget and Analysis Division Director, has determined that for the first 
five-year period the proposed sections will be in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the sections. 
Ms. Brown 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 public access to clarified rules for operators of child 
care who must comply with these rules. There will be no effect on small 
businesses because there is no cost to providers as these are clarifying and 
consolidating amendments. There is no anticipated economic cost to persons who 
are required to comply with the proposed sections. 
Questions about the content of the proposal may be directed to Mary Panella at 
(512) 438-3246 in TDPRS's Licensing Division. Written comments on the proposal 
may be submitted to Supervisor, Rules and Handbooks Unit-145, Texas Department 
of Protective and Regulatory Services E-205, P.O. Box 149030, Austin, Texas 
78714-9030, within 30 days of publication in the Texas Register. 

SUBCHAPTER A. Definitions
40 TAC sec.725.1001
The amendment is proposed under the Human Resources Code, Title 2, Chapter 42, 
which authorizes the department to administer general child-placing and child 
care licensing programs. 
The amendment implements the Human Resources Code, sec.sec.42.001- 42.077. 

sec.725.1001. Definitions. 
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise: 
<nl>(1)-(17)<ol> (No change.) 
<nl>(18)<ol> On the premises - For the purpose of sec.725.1403(3) of this title 
(relating to Facilities Exempt from Licensing), on the premises means in the 
same building or shopping center, and adjacent to the premises means next to, 
across the street from, or in the same city block. 
<nl>(19)-(21)<ol> (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 March 2, 1998.
TRD-9803004
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER O. Exemptions from Licensing
40 TAC sec.725.1403
The amendment is proposed under the Human Resources Code, Title 2, Chapter 42, 
which authorizes the department to administer general child-placing and child 
care licensing programs. 
The amendment implements the Human Resources Code, sec.sec.42.001-42.077. 

sec.725.1403. Facilities Exempt from Licensing. 
The types of child care facilities or arrangements that are exempt from 
licensing are: 
(1)-(2) (No change.) 
(3) a facility where the parents of the children in care are shopping or 
engaging in activities on or adjacent to the premises and children are cared for 
during short periods of time. [On the premises means in the same building or 
shopping center, and adjacent to the premises means next to, across the street 
from, or in the same city block.] The facility must be able to contact the 
parent at all times. The maximum length of time the child may be in care is four 
and a half hours per day or 12 hours per week. This exemption does not apply to 
facilities operated by an organization where parents are employed or enrolled as 
students. 
(4) (No change.) 
(5) school or class for religious instruction that does not last longer than two 
weeks and is conducted by a religious organization <nl> during the summer 
months<ol>. 
(6)-(18) (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 March 2, 1998.
TRD-9803013
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER S. Administrative Procedures
40 TAC sec.725.1804
The amendment is proposed under the Human Resources Code, Title 2, Chapter 42, 
which authorizes the department to administer general child-placing and child 
care licensing programs. 
The amendment implements the Human Resources Code, sec.sec.42.001-42.077. 

sec.725.1804. Liability Insurance. 
(a)-(d) (No change.) 
(e) This section does not apply to a group [or registered] day care home or 
<nl>a listed or registered family home <ol>[an agency foster home]. 
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 March 2, 1998.
TRD-9803012
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER U. Say Care Licensing Procedures
40 TAC sec.sec.725.2002, 725.2018, 725.2020, 725.2023, 725.2024, 725.2028, 
725.2030, 725.2033, 725.2046
The amendments are proposed under the Human Resources Code, Title 2, Chapter 42, 
which authorizes the department to administer general child-placing and child 
care licensing programs. 
The amendments implement the Human Resources Code, sec.sec.42.001-42.077. 

sec.725.2002. Exemptions. 
If a facility claims that it is not subject to regulation under a provision of 
the Human Resources Code, sec.42.041, the facility must send a written claim 
citing the subsection of the statute or the <nl>department rule <ol>[handbook] 
provision under which the claim is made. The facility must include all 
documentation supporting the claim. The facility must send the claim to the 
department. 

sec.725.2018. Administrative Licensing Suspension.
If a facility <nl>or registered family home <ol>wishes to request a suspension 
of its license <nl>or registration <ol>under Human Resources Code, 
sec.42.071(a), the facility <nl>or registered family home <ol>must notify the 
licensing representative in writing of specific plans for resuming operation 
after a temporary suspension of operation. <nl>The child care facility must 
notify the department within 14 calendar days before resuming operation. <ol>The 
facility must show that standards can be met at the end of the suspension period 
and must not care for children during the suspension period. 

sec.725.2020. Appeal Not Requested. 
After a revocation or denial of license, the facility must cease providing care 
for children after all <nl>administrative <ol>appeals and challenges have been 
exhausted. 

sec.725.2023. Requesting the Waiver/Variance. 
To request permission not to meet a standard or to meet the intent of the 
standard in a different manner, <nl>an applicant <ol>[an applicant/licensee] or 
a holder of <nl>a license/certificate/registration<ol> [registration] must 
submit a completed waiver/variance request form to the licensing representative 
for that facility. The <nl>applicant or holder of a 
license/certificate/registration <ol>[applicant/licensee] may only request a 
waiver/variance of standards. If the waiver/variance request is denied<nl>, 
<ol>[by the director of licensing,] the <nl> applicant or holder of a 
license/certificate/registration <ol>[applicant/licensee] must bring the 
facility into compliance. The facility is entitled to be notified of the 
decision regarding the waiver/variance request. If the waiver/variance request 
is granted, the <nl>applicant or holder of a license/certificate/registration 
<ol>[applicant/licensee] must meet all conditions of the waiver/variance.

sec.725.2024. Requesting an Administrative Review.
If an <nl>applicant<ol> [applicant/licensee] or a holder of <nl>a 
license/certificate/registration/listing <ol>[registration] disagrees with a 
decision or action by licensing staff and wishes to request an administrative 
review, the requestor must describe the decision or action in dispute. <nl>The 
specific request must be in writing to a licensing supervisor or administrative 
staff. The request may be given by telephone or in person, but must be followed 
up with written notification. The request for an administrative review must be 
made within 14 calendar days of notification of the disputed licensing decision 
or action. <ol>[The requestor may request an administrative review by phone, in 
person, or by letter. The requestor may contact any regional staff.] 

sec.725.2028. Notification of Complaint Investigation.
The <nl>applicant/licensee/certificate holder/registrant, 
<ol>[applicant/licensee,] director, or person in charge at the 
<nl>facility/family home <ol>[facility] is entitled to be notified by licensing 
staff when a complaint is being investigated. 

sec.725.2030. Findings of the Complaint Investigation.
The <nl>applicant/licensee/certificate holder/registrant, 
<ol>[applicant/licensee,] director, or person in charge is entitled to be 
notified of the results of the investigation of the complaint, including all 
<nl> relevant citations of licensing rules and/or statute requirements and any 
evaluations of noncompliances, <ol>[allegations, citation of standards 
evaluated, noncompliance,] corrections needed, and time limit for corrections.

sec.725.2033. Registration.
[(a)] The department issues a notice of registration when a registration request 
(completed according to registration requirements) has been processed, the 
applicant has submitted satisfactory verification of completion of training in 
first aid and cardiopulmonary resuscitation, the premises have been inspected 
and found to be in compliance with the minimum standards for registered family 
homes, and the required registration fee has been paid. 
[(b) If all other matters have been satisfactorily completed and the licensing 
representative finds only minor noncompliances, a temporary registration may be 
issued for 30 days. If the applicant corrects the noncompliances on or before 
the expiration of that term, the department verifies that corrective action has 
been taken and issues a regular registration certificate.] 

sec.725.2046. Regulations for Registered Family Homes.
(a) The department inspects family day care homes prior to issuing a 
registration to establish compliance with minimum standards. The department also 
inspects [a random sample of] registered family homes [every year] to establish 
compliance with minimum standards.
[(b) Abuse/neglect complaints about registered family homes that are exempt from 
registration are referred to law enforcement. The department does not 
investigate complaints about exempt homes.] 
<nl>(b)<ol> [(c)] The department may inspect family homes to determine whether 
child care is subject to <nl>regulation<ol>[registration]. 
<nl>(c)<ol> [(d)] Registered family homes placed on probation or evaluation are 
inspected for compliance with the law, minimum standards, and registration 
requirements. 
<nl>(d)<ol> [(e)] Any public advertisement for a registered family home which 
uses the term "registered family home" must contain a provision in bold type 
stating: THIS HOME IS REGISTERED WITH THE TEXAS DEPARTMENT OF PROTECTIVE AND 
REGULATORY SERVICES BUT IS NOT LICENSED OR REGULARLY INSPECTED." 
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 March 2, 1998.
TRD-9803011
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

40 TAC sec.725.2025, sec.725.2031
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Protective and Regulatory Services or in the Texas Register 
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeals are proposed under the Human Resources Code, Title 2, Chapter 42, 
which authorizes the department to administer general child-placing and child 
care licensing programs. 
The repeals implement the Human Resources Code, sec.sec.42.001- 42.077.
sec.725.2025. Requirements for an Advisory Opinion.
sec.725.2031. Exemptions from Registration. 
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 March 2, 1998.
TRD-9803010
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER PP. Release Hearings
40 TAC sec.725.4052
The amendment is proposed under the Human Resources Code, Title 2, Chapter 42, 
which authorizes the department to administer general child-placing and child 
care licensing programs. 
The amendment implements the Human Resources Code, sec.sec.42.001-42.077. 

sec.725.4052. Release Hearing for a Facility Employee.
When the alleged perpetrator is the employee of a facility, including an 
unlicensed or unregistered facility that is subject to regulation and including 
a facility making application, <nl>the Texas Department of Protective and 
Regulatory Services (TDPRS) <ol>[PRS] sends the alleged perpetrator a notice 
including: 
(1)-(4) (No change.) 
(5) a statement that any request for a hearing must be sent to the <nl>TDPRS, 
Docket Clerk, Legal Services Division, MC E-661, P.O. Box 149030, Austin, Texas 
78714-9030 <ol>[associate commissioner for legal services, with a copy to the 
investigator or investigator's supervisor 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 March 2, 1998.
TRD-9803009
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER NNN. Abuse/Neglect Investigations in Child Care Facilities
40 TAC sec.725.7001
The amendment is proposed under the Human Resources Code, Title 2, Chapter 42, 
which authorizes the department to administer general child-placing and child 
care licensing programs. 
The amendment implements the Human Resources Code, sec.sec.42.001-42.077. 

sec.725.7001. Facility Responsibility. 
(a) (No change.) 
(b) A regulated facility has the right to request an administrative review of 
any request for access or information that the facility believes is outside the 
department's authority [or that the facility believes constitutes harassment]. 
The facility may not use a request for administrative review to delay an 
investigation. 
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 March 2, 1998.
TRD-9803008
C. Ed Davis
Deputy Director, Legal Services
Texas Department of Protective and Regulatory Services
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 438-3765

TITLE 43. TRANSPORTATION
PART I. Texas Department of Transportation
CHAPTER 3. Public Information
SUBCHAPTER B. Access to Official Records
43 TAC sec.3.12, sec.3.14
The Texas Department of Transportation proposes amendments to sec.3.12 and 
sec.3.14, concerning public information access to motor vehicle records. 
EXPLANATION OF PROPOSED AMENDMENTS. Transportation Code, sec.201.501 authorizes 
the department to furnish certified copies of records. Transportation Code, 
sec.502.008 prescribes methods for releasing vehicle registration information 
upon receipt of a written request or under the terms of a written service 
agreement with the department. Government Code, sec.552.230 and sec.552.262 
authorizes each agency to promulgate rules of procedure for the inspection and 
copying of public information and to specify the charges the agency will make 
for copies of public records. 
Senate Bill 1069, 75th Legislature, 1997, added Transportation Code, Chapters 
730 and 731, which require the department to provide the subject of a motor 
vehicle certificate of title or motor vehicle registration record the 
opportunity to prohibit disclosure of their personal information contained in 
the record, except for the uses permitted by those chapters. 
The Federal Driver's Privacy Protection Act, 18 U.S.C. sec.2721, effective 
September 13, 1997, restricts the disclosure of vehicle registration and title 
records to certain individuals, agencies, and businesses. 
Section 3.12 is amended to provide that the department will release certain 
vehicle registration information by telephone or upon receipt of a written 
request, but only in accordance with Transportation Code, sec.502.008 and 
Chapters 730 and 731, and 18 U.S.C. sec.2721; make available a form for written 
requests for motor vehicle registration information; and make available a form 
by which an individual may request the department to restrict the release of 
personal information contained in their motor vehicle records. 
Section 3.14 is amended to clarify the terms of written service agreements with 
individuals and businesses who obtain electronic access to motor vehicle 
registration records to include the amount of the initial deposit and minimum 
balance to be maintained in a non-interest bearing escrow account for on-line 
access accounts and prepaid accounts for batch purchase of motor vehicle 
registration information. 
The amendments are proposed in response to House Bill 1069, the Federal Driver's 
Privacy Protection Act, and a need for a clarification of the payment procedure 
for on-line access accounts and prepaid accounts for batch purchase of motor 
vehicle registration information. 
FISCAL NOTE. Frank J. Smith, Director, Budget and Finance Division, has 
determined that for the first five years the sections as proposed are in effect, 
there will be no significant fiscal implications for state or local governments 
as a result of enforcing or administrating the amended sections. There are no 
anticipated 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 amended 
sections. 
PUBLIC BENEFIT. Mr. Dike has also determined that for each year of the first 
five years the sections as proposed are in effect, the public benefit 
anticipated as a result of enforcing the amendments and compliance with the 
sections will be privacy protection of persons who choose to restrict access to 
their personal information contained in motor vehicle records and clarification 
of the payment procedure for on-line access accounts and prepaid accounts for 
batch purchase of motor vehicle registration information. There will be no 
effect on small businesses. 
SUBMITTAL OF COMMENTS. Written comments on the proposed amendments may be 
submitted to Jerry L. Dike, Director, Vehicle Titles and Registration Division, 
125 East 11th Street Austin, Texas, 78701-2483. The deadline for receipt of 
written comments will be 5 p.m. on April 6, 1998. 
STATUTORY AUTHORITY. 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, Transportation Code, sec.502.008 which authorizes the release 
of certain vehicle title and registration information, and Government Code, 
sec.552.230 and sec.552.262 which authorizes each agency to promulgate rules of 
procedure for the inspection and copying of public information and to specify 
the charges the agency will make for copies of public records.
No statutes, articles, or codes are affected by these proposed amendments.

sec.3.12. Public Access. 
(a) Request for records. 
(1)-(2) (No change.) 
(3) Vehicle title and registration information. 
<nl>(A)<ol> The department will provide certain vehicle registration information 
by telephone or upon receipt of a written request. Requested information will be 
released in accordance with 18 U.S.C. sec.2721, Transportation Code, Chapters 
730 and 731, and Transportation Code sec.502.008. 
<nl>(B)<ol> The department will provide a written form for requests for motor 
vehicle registration information which includes, but is not limited to: 
<nl>(i)<ol> the name and address of the requestor; 
<nl>(ii)<ol> the Texas license number, title or document number, and/or the 
vehicle identification number; 
<nl>(iii)<ol> a statement that if the subject of the record has requested the 
department to restrict the release of the information, the requested information 
may only be released if the requestor is the subject of the record, has written 
authorization for release from the subject of the record, or the intended use is 
for one of the permitted uses indicated on the form; 
<nl>(iv)<ol> a statement that the information is requested for a lawful and 
legitimate purpose, and the requestor will not disseminate or publish the 
information obtained from the department on the Internet or permit another to do 
so, in accordance with Transportation Code, sec.731.002;
<nl>(v)<ol> a certification that the statements made on the form are true and 
correct; and 
<nl>(vi)<ol> the signature of the requestor. 
<nl>(C)<ol> Each written request shall be accompanied by payment of the 
applicable fee in the form of either cash, cashier's check, or money order. 
<nl>(D)<ol> [(A)] The department will [ not] provide vehicle registration 
information by license number by telephone <nl> only in accordance with 18 
U.S.C. sec.2721 and Transportation Code, Chapters 730 and 731, and only if<ol> 
[unless] requested by: 
(i) a peace officer acting in an official capacity; or 
(ii) an official of the state, city, town, county, special district, or other 
political subdivision, utilizing the obtained information for tax purposes or 
for the purpose of determining eligibility for a state public assistance 
program. 
[(B) The department will release information contained in the vehicle 
registration database by license number upon receipt of a written request. 
Information may only be released in accordance with 18 U.S.C. sec.2721 and 
Transportation Code, Chapters 730 and 731.]
[(C) Each written request shall be accompanied by payment of the applicable fee 
in the form of cash, cashier's check, or money order, and shall include:] 
[(i) the name and address of requestor;] 
[(ii) the Texas license number; and] 
[(iii) a statement that the use of the information is in accordance with 18 
U.S.C. sec.2721 and Transportation Code, Chapters 730 and 731, and is for a 
lawful and legitimate purpose.] 
[(D) A person receiving motor vehicle certificate of title or motor vehicle 
registration information that consists of the personal information of an 
individual who is the subject of that record must agree in writing that the 
person will not:] 
[(i) disseminate or publish the information on the Internet; or] 
[(ii) permit another to disseminate or publish the information in that manner.] 
(4)-(5) (No change.) 
(b)-(d) 
(e) Confidential information and privacy protection. 
(1) The department will not provide records considered to be confidential by law 
or otherwise prohibited from release under the Code or other provisions of law, 
and will not provide copies of information subject to intellectual property 
protection. 
(A) (No change.) 
<nl>(B)<ol> Upon receipt of a request from an individual to restrict release of 
his or her personal information in the motor vehicle registration record, the 
department will only release the information in accordance with 18 U.S.C. 
sec.2721 and Transportation Code, Chapters 730 and 731. The department will 
provide a form for such a request, which at a minimum includes: 
<nl>(i)<ol> the printed name and address of the requestor;
<nl>(ii)<ol> the description of the motor vehicle to which the request applies; 
<nl>(iii)<ol> an area which allows the requestor to restrict disclosure of their 
personal information in response to individual requests for information and/or 
requests for information to be used for bulk distribution for surveys, 
marketing, or solicitations; and 
<nl>(iv)<ol> the signature of the requestor. 
<nl>(C)<ol> [(B)] Upon receipt of a court order to prevent release of 
information, the department will prevent access to all information pertaining to 
an individual's specific motor vehicle record. 
(2) (No change.) 
(f)-(g) 

sec.3.14. Electronic Access to Department Records.
(a) (No change.) 
(b) Electronic access to vehicle title and registration information.
(1) (No change.) 
(2) Agreement with business or individuals. The written service agreement with a 
business or individual must contain: 
(A) (No change.) 
(B) an adjustable account<nl>, if applicable, in which an initial deposit and 
minimum balance is maintained in the amount of:<ol>
<nl>(i)<ol> $200 for an on-line access account; or 
<nl>(ii)<ol> $1,000 for a prepaid account for batch purchase of motor vehicle 
registration information; 
(C)-(H) (No change.) 
(3) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802962
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-8630

CHAPTER 9. Contract Management 
SUBCHAPTER A. General
43 TAC sec.9.3
The Texas Department of Transportation proposes new sec.9.3, concerning protests 
made of purchases by the department under the State Purchasing and General 
Services act. 
EXPLANATION OF PROPOSED NEW SECTION. Senate Bill 1752, 75th Legislature, 1997, 
added Government Code, sec.2155.076 to the State Purchasing Act to require each 
state agency to develop and adopt protest procedure rules for resolving vendor 
protests relating to purchasing issues. The act requires that the agency's rules 
must be consistent with the General Services Commission's rules which are 
located in 1 TAC Chapter 111. 
New sec.9.3 is proposed to comply with Government Code, sec.2155.076 and provide 
a fair and efficient procedure for the protest of department purchases which 
does not place an undue burden on the protesting party. This section provides 
that the purpose of the section is to provide a procedure for vendors to protest 
purchases. The section defines general words and terms used throughout the new 
section, provides where and when a protest may be filed, establishes the minimum 
informational contents of the protest, and indicates who must receive copies of 
the protest. The section authorizes the department to suspend the purchase award 
during the protest unless the deputy executive director makes a written 
determination that the award of the purchase should be made without delay to 
protect substantial interests of the department. The section: establishes an 
informal resolution process, including solicitation of written responses and 
resolution of dispute by agreement; requires the department to issue a written 
determination to a protest if the protest is not resolved by mutual agreement; 
and provides that remedial action that may be taken, including declaring the 
purchase void, reversing the award, or re-advertising the purchase. The section 
establishes an appeal process which includes review and recommendation by the 
general counsel to the executive director. The executive director may make a 
final determination or refer the matter to the Texas Transportation Commission 
for final determination. The department may reject protests that are not timely 
filed. 
FISCAL NOTE Frank J. Smith, Director, Budget and Finance Division, has 
determined that for the first five-year period the new section is in effect, 
there will be no significant fiscal implications for state or local governments 
as a result of enforcing or administering the new section. There are no 
anticipated economic costs for persons required to comply with the section as 
proposed. 
Lawrence J. Zatopek, Director, General Services Division, has certified that 
there will be no significant impact on local economies or overall employment as 
a result of enforcing or administering the new section. 
PUBLIC BENEFIT. Mr. Zatopek has also determined that for each year of the first 
five years the section is in effect, the public benefit anticipated as a result 
of the rule will be efficient and effective resolution of protests concerning 
protests. There will be no effect on small businesses. 
SUBMITTAL OF COMMENTS. Written comments on the proposed new section may be 
submitted to Lawrence J. Zatopek, Director, General Services Division, 125 East 
11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments will 
be 5:00 p.m. on April 6, 1998. 
STATUTORY AUTHORITY. The new 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. Government Code, sec.2155.076 which 
requires the department to adopt rules concerning protest of purchase.
No statutes, articles, or codes are affected by this proposed new section.

sec.9.3. Protest of Department Purchases under the State Purchasing and General 
Services Act. 
(a) Purpose. The purpose of this section is to provide a procedure for vendors 
to protest purchases made by the department. Purchases made by the General 
Services Commission on behalf of the department are addressed in 1 TAC Chapter 
111. 
(b) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise.
(1) Act - Government Code, Chapters 2151-2177, the State Purchasing and General 
Services Act. 
(2) Commission - The Texas Transportation Commission.
(3) Department - The Texas Department of Transportation.
(4) Deputy executive director - The deputy executive director for administrative 
services of the department. 
(5) Director of general services - The director of the general services division 
of the department. 
(6) Director of purchasing - The director of purchasing in the general services 
division of the department. 
(7) District engineer - The chief administrative officer in charge of a district 
of the department. 
(8) Division - An organizational unit in the department's Austin headquarters. 
(9) Executive director - The executive director of the department. 
(10) Interested party - A vendor that has submitted a bid for the purchase 
involved. 
(11) Purchase - A procurement action for commodities or non-professional 
services under the Act. 
(12) Rules - 1 TAC sec.sec.113.1-113.87, the State Purchasing Rules. 
(c) Filing of protest. 
(1) An actual or prospective bidder or offeror who is aggrieved in connection 
with the solicitation, evaluation, or award of a purchase may file a written 
protest. The protest must be addressed to the attention of the district engineer 
in whose district the action is being or was processed, or to the director of 
purchasing for purchases made on behalf of a division, but sent to the office of 
the director of general services within 10 working days after such aggrieved 
person knows, or should have known, of the action.
(2) The protest must be sworn and contain: 
(A) the statutory or regulatory provision of the Act or the rules that the 
action is alleged to have violated; 
(B) a specific description of the violation; 
(C) a precise statement of the relevant facts; 
(D) the issue to be resolved; 
(E) argument and authorities in support of the protest; and
(F) a statement that copies of the protest have been mailed or delivered to 
other identifiable interested parties. 
(d) Suspension of award. If a protest or appeal of a protest has been filed, 
then the department will not proceed with the solicitation or the award of the 
purchase until the deputy executive director consults with the director of 
general services and the appropriate district engineer or the director of 
purchasing, and makes a written determination that the award of the purchase 
should be made without delay to protect substantial interests of the department. 
(e) Informal resolution. The district engineer or the director of purchasing may 
informally resolve the dispute, including: 
(1) soliciting written responses to the protest from other interested parties; 
and 
(2) resolving the dispute by mutual agreement. 
(f) Written determination. If the protest is not resolved by agreement, the 
district engineer or the director of purchasing will issue a written 
determination to the protesting party and interested parties which sets forth 
the reason of the determination. The district engineer or the director of 
purchasing may determine that: 
(1) no violation has occurred; or 
(2) a violation has occurred and it is necessary to take remedial action which 
includes, but is not limited to: 
(A) declaring the purchase void; 
(B) reversing the award; and 
(C) re-advertising the purchase using revised specifications.
(g) Appeal. 
(1) An interested party may appeal the determination to the executive director. 
The party must submit an appeal in writing to the executive director's office no 
later than 10 working days after the date of the determination. The appeal is 
limited to a review of the determination. 
(2) The appealing party must mail or deliver copies of the appeal to the 
determining district engineer or the director of purchasing and other interested 
parties with an affidavit that such copies have been provided. 
(3) The general counsel shall review the protest, the determination, the appeal, 
and prepare a written opinion with recommendation to the executive director. 
(4) The executive director may: 
(A) issue a final written determination; or 
(B) refer the matter to the commission for its consideration at a regularly 
scheduled open meeting. 
(5) The commission may consider oral presentations and written documents 
presented by the department and interested parties. The chairman shall set the 
order and the amount of time allowed for presentation. The commission's 
determination of the appeal shall be adopted by minute order and reflected in 
the minutes of the meeting. 
(6) The decision of the commission or executive director shall be final. 
(h) Filing deadline. Unless the commission determines that the appealing party 
has demonstrated good cause for delay or that a protest or appeal raises issues 
significant to procurement practices or procedures, a protest or appeal that is 
not filed timely will not be considered. 
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 27, 1998.
TRD-9802968
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-8630

CHAPTER 17. Vehicle Titles and Registration
SUBCHAPTER B. Motor Vehicle Registration
43 TAC sec.17.21, sec.17.28
The Texas Department of Transportation proposes amendments to sec.17.21, 
concerning definitions, and sec.17.28, concerning special category license 
plates, symbols, and tabs. 
EXPLANATION OF PROPOSED AMENDMENTS. The Legislature passed several bills in the 
75th Legislature, 1997, which created many new special plates and expanded the 
availability of other special plates. 
House Bill 107, added Transportation Code, sec.502.292 to authorize the issuance 
of "Read to Succeed" license plates. House Bill 344 amended: Transportation 
Code, sec.502.274 to authorize the issuance of "Classic Motorcycle" license 
plates; Transportation Code, sec.502.275 to authorize the department to issue 
"Former Military Vehicle" license plates to applicable vehicles and renamed 
"Antique" vehicles "Exhibition" vehicles; and Transportation Code, sec.502.293 
to authorize the department to issue "County Judge" license plates to each 
county judge in the State of Texas. 
House Bill 1790, amended Transportation Code, sec.503.0615 to authorize the 
department to issue "Personalized Prestige" dealer license plates. House Bill 
2198 amended Transportation Code, sec.502.293 to authorize the department to 
issue "Texas Commission on Alcohol and Drug Abuse (Boy Scout) license plates.
House Bill 2519 added Transportation Code, sec.502.295 to authorize the 
department to issue "Big Bend National Park" license plates. House Bill 2681 
added Transportation Code, sec.502.2731 to authorize the department to issue 
"Keep Texas Beautiful" license plates. 
House Bills 3063 and 2733 amended Transportation Code, sec.502.284 to authorize 
the department to issue "Golf Cart" license plates to applicable vehicles and to 
allow the operation of certain golf carts on public roads. House Bill 3250 added 
Transportation Code, sec.502.291 to authorize the department to issue "Animal 
Friendly" license plates. 
Senate Bill 370 added Transportation Code, sec.502.2703 to authorize the 
department to issue "Professional Sports Team" license plates. Senate Bill 460 
added Transportation Code, sec.502.292 to authorize the department to issue 
"Volunteer Advocate" license plates. Senate Bill 745 added Transportation Code, 
sec.502.292 to authorize the department to issue "Gold Star Mother" license 
plates to vehicles owned by a mother of a person who died while serving in the 
United States armed forces. 
Senate Bill 1630 amended: Transportation Code, sec.502.260 to allow the issuance 
of "Purple Heart" license plates to civilian nationals; Transportation Code, 
sec.502.295 to authorize the department to issue "State Official" license 
plates; Transportation Code, sec.502.296 to authorize the department to issue 
license plates to members of Congress; and Transportation Code, sec.502.297 to 
authorize the department to issue license plates to state and federal judges. 
Senate Bill 1630 also amended Texas Transportation Code, sec.sec.502.001, 
502.166, and 502.167 to add and provide technical corrections to definitions 
regarding motor vehicle registration. 
Amended sec.17.21 clarifies that the frame, body, and motor of a vehicle must be 
at least 25 years old in order for it to be considered an exhibition vehicle. 
The section revises the definition for Road Tractor to include vehicles designed 
for the purpose of mowing the right of way of a public highway. It adds 
definitions for Rental Fleet, Rental Trailer, Token Trailer, Apportioned License 
Plate, Travel Trailer, and Combination License Plates. 
Amended sec.17.28 authorizes the department to issue "Read to Succeed" license 
plates, "Classic Motorcycle" license plates, "Former Military Vehicle" license 
plates, "Texas Commission on Alcohol and Drug Abuse" (Boy Scout) license plates, 
"Big Bend National Park" license plates, "Keep Texas Beautiful" license plates, 
"Animal Friendly" license plates, "Professional Sports Team" license plates, 
"Volunteer Advocate" license plates, "Gold Star Mothers" license plates, and 
"Golf Cart" license plates to applicable vehicles. It changes the terminology of 
"Antique" vehicles to "Exhibition" vehicles, and authorizes the department to 
issue "County Judge" license plates. 
The amended section also authorizes issuance of "Purple Heart" license plates to 
civilian nationals, and specifies the state officials who may apply for "State 
Official" license plates. It also authorizes the issuance of personalized 
prestige plates in several plate categories. The section allows a surviving 
spouse of a disabled veteran to apply for "Disabled Veteran" plates, even if the 
disabled veteran did not have plates, as long as the disabled veteran was 
eligible for the plates. 
FISCAL NOTE. Frank J. Smith, Director, Budget and Finance, has determined that 
for each year of the first five-year period the amendments are in effect, the 
fiscal implications to the state as a result of enforcing or administering this 
section will be an estimated additional cost of $457,656 for 1998, $93,871 for 
1999, $96,371 for 2000, $98,871 for 2001, and $101,371 for 2002. The estimated 
increase in revenue is $761,150 for 1998, $902,150 for 1999, $1,051,150 for 
2000, $1,201,150 for 2001, and $1,351,150 for 2002. The effect on local 
government for the first five-year period the sections will be in effect is an 
estimated additional increase in revenue of $100,250 per year. No person is 
required to comply with the sections. The anticipated costs for persons who 
choose to be issued special plates ranges from no cost to $50 depending on the 
type of personalized plated requested. 
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.
PUBLIC BENEFIT. 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 allowing the motor vehicle owners of 
this state to purchase special plate category license plates for their vehicles 
and the proper, efficient, and effective licensing of antique vehicles. There 
could be an increase in the amount of vehicles registered with exhibition 
license plates as a result of the change to the exhibition vehicle definition 
which requires the body, motor, and frame required to be 25 years or more. In 
accordance with Senate Bill 1630, United States Administrative Law Judges are no 
longer eligible to receive "U.S. Judge" license plates. The department will 
implement a recall program for "U.S. Judge" license plates issued to United 
States Administrative Law Judges. This recall program will be a phase out plan. 
As registration expires, the department will advise the United States 
Administrative Law Judges that these plates are not renewable. There will be no 
effect on small businesses. 
PUBLIC HEARING. Pursuant to the Administrative Procedure Act, Government Code, 
Chapter 2001, the Texas Department of Transportation will conduct a public 
hearing to receive comments concerning the proposed adoption. A public hearing 
will be held at 9:00 a.m. on March 24, 1998, in first floor hearing room of the 
Dewitt C. Greer State Highway Building, 125 East 11th Street, Austin, Texas, and 
will be conducted in accordance with the procedures specified in 43 TAC sec.1.5. 
Those desiring to make comments or presentations may register starting at 8:30 
a.m. 
Any interested person may appear and offer comments, either orally or in 
writing; however, questioning of those making presentations will be reserved 
exclusively to the presiding officer as may be necessary to ensure a complete 
record. While any person with pertinent comments will be granted an opportunity 
to present them during the course of the hearing, the presiding officer reserves 
the right to restrict testimony in terms of time and repetitive content. 
Organizations, associations, or groups are encouraged to present their commonly 
held views, and same or similar comments, through a representative member where 
possible. Presentations must remain pertinent to the issue being discussed. A 
person may not assign a portion of his or her time to another speaker. A person 
who disrupts a public hearing must leave the hearing room if ordered to do so by 
the presiding officer. Persons with disabilities who have special communication 
or accommodation needs and who plan to attend the hearing and who may need 
auxiliary aids or services such as interpreters for persons who are deaf or 
hearing impaired, readers, large print or braille, are requested to contact 
Eloise Lundgren, Director, Public Information Office, at 125 E. 11th St., 
Austin, Texas 78701-2483, (512) 463-8588, at least two weeks prior to the 
hearing so that appropriate arrangements can be made. 
SUBMITTAL OF COMMENTS. 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 5:00 p.m. on April 6, 1998. 
STATUTORY AUTHORITY. The amendments are proposed under Transportation Code, 
sec.201.101, which authorizes the Texas Transportation Commission to promulgate 
rules for the conduct of the work of the Department of Transportation, and more 
specifically Chapter 502, Subchapter F, which provides the Texas Department of 
Transportation the authority to establish rules for the issuance of special 
category license plates, symbols, and tabs. 
No statutes, articles, or codes are affected by these 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>(1)<ol> Affidavit for alias exempt registration - A form prescribed by the 
director that must be executed by an exempt law enforcement agency to request 
the issuance of exempt registration in the name of an alias.
<nl>(2)<ol> Agent - A duly authorized representative possessing legal capacity 
to act for an individual or legal entity. 
<nl>(3)<ol> Alias - The name of a vehicle registrant reflected on the 
registration, different than the name of the legal owner of the vehicle. 
<nl>(4)<ol> Alias exempt registration - Registration issued under an alias to a 
specific vehicle to be used in covert criminal investigations by a law 
enforcement agency. 
<nl>(5)<ol> Apportioned license plate - A license plate issued in lieu of truck 
license plates or combination license plates to a motor carrier in this state 
who proportionally registers a vehicle owned by the carrier in one or more other 
states. 
<nl>(6)<ol> Axle load - The total load transmitted to the road by all wheels 
whose centers may be included between two parallel transverse vertical planes 
forty inches apart, extending across the full width of the vehicle. 
<nl>(7)<ol> Bus (motor) - A motor propelled vehicle used in transporting persons 
upon the public highways of this State for compensation or hire exclusively 
within the limits of incorporated cities and/or towns or suburban additions to 
such cities and/or towns. 
<nl>(8)<ol> Bus (street or suburban) - A vehicle, except a motor bus or 
passenger car, used in transporting persons for compensation (or hire) 
exclusively <nl>within<ol> [with] the limits of cities and towns or suburban 
additions to such cities or towns. 
<nl>(9)<ol> Carrying capacity - The maximum safe load that a commercial vehicle 
may carry, in tons, as determined by the manufacturer.
<nl>(10)<ol> Character - A numeric or alpha symbol displayed on a license plate. 
<nl>(11)<ol> Combination license plate - A license plate issued for a truck or 
truck-tractor that has a manufacturer's rated carrying capacity of more than one 
ton and is used or intended to be used in combination with a semitrailer that 
has a gross weight of more than 6,000 pounds. 
<nl>(12)<ol> Commercial vehicle - Any vehicle (other than a motorcycle or 
passenger car) designed or used primarily for the transportation of property, 
including any passenger car which has been reconstructed so as to be used, and 
which is being used, primarily for delivery purposes, with the exception of 
passenger cars used in the delivery of the United States mail. 
<nl>(13)<ol> Conventional vehicle - A regular truck or regular trailer eligible 
only for regular registration, which are primarily designed to transport 
divisible loads, regardless of the vehicle's present use (vehicles which have 
been altered or reconstructed, or upon which machinery has been mounted or 
attached, permanently or otherwise, retain their conventional status). 
<nl>(14)<ol> County or city civil defense agency - An agency authorized by a 
commissioner's court order or by a city ordinance to provide protective measures 
and emergency relief activities in the event of hostile attack, sabotage, or 
natural disaster. 
<nl>(15)<ol> Department - The Texas Department of Transportation. 
<nl>(16)<ol> Director - The director of the Vehicle Titles and Registration 
Division, Texas Department of Transportation. 
<nl>(17)<ol> Disabled person - A person who has mobility problems that 
substantially impair the person's ability to ambulate or who is legally blind. 
<nl>(18)<ol> Escrow account - A deposit of a specific amount of money held by 
the department for security. 
<nl>(19)<ol> Evidence of financial responsibility - The original document or 
photocopy of any one of the following items: 
(A) a liability insurance policy or liability self-insurance or pool coverage 
document issued in at least the minimum amount required by law; 
(B) a personal automobile insurance policy used as evidence of financial 
responsibility, written for at least the term required by the Insurance Code, 
Article 5.06; 
(C) a standard proof of liability form issued by a liability insurer; 
(D) an insurance binder that confirms that the owner is in compliance with the 
law; 
(E) a certificate issued by the Texas Department of Public Safety that shows the 
vehicle is covered by self- insurance; 
(F) a certificate issued by the state treasurer that shows that the owner has 
money or securities in an amount not less than $55,000 on deposit with the state 
treasurer; 
(G) a certificate issued by the Texas Department of Public Safety that shows 
that the vehicle has a bond, in the form and amount required by law, on file 
with that department, such bond shall include at least two individual sureties 
each owning real estate within this state; 
(H) a certificate issued by the county judge in the county where the owner 
resides showing that the owner has cash or a cashier's check in an amount not 
less than $55,000 on deposit with the county judge. 
<nl>(20)<ol> Executive administrator - The director of a federal agency, the 
director of a Texas state agency, the sheriff of a Texas county, or the chief of 
police of a Texas city that by law possesses the authority to conduct covert 
criminal investigations. 
<nl>(21)<ol> Exempt agency - A governmental body exempted by statute from paying 
registration fees when registering motor vehicles.
<nl>(22)<ol> Exempt license plates - Specially designated license plates issued 
to certain vehicles owned or controlled by exempt agencies.
<nl>(23)<ol> Exhibition vehicle - A complete passenger car, truck, or motorcycle 
which: 
<nl>(A)<ol> is at least 25 years old; 
<nl>(B)<ol> is a collector's item; 
<nl>(C)<ol> is used exclusively for exhibitions, club activities, parades, and 
other functions of public interest; 
<nl>(D)<ol> does not carry advertising; and 
<nl>(E)<ol> has a frame, body, and motor that is at least 25 years old. 
<nl>(24)<ol> Fire fighting equipment - Equipment mounted on fire fighting 
vehicles used in the process of fighting fires, including, but not limited to, 
ladders and hoses. 
<nl>(25)<ol> Gross weight - The sum of the empty weight of a commercial vehicle 
(or vehicles, if operated in combination), combined with its maximum carrying 
capacity, rounded up to the next 100 pounds. 
<nl>(26)<ol> Highway construction project - That section of the highway between 
the warning signs giving notice of a construction area.
<nl>(27)<ol> International symbol of access - The symbol adopted by 
Rehabilitation International in 1969 at its Eleventh World Congress of 
Rehabilitation of the Disabled. 
<nl>(28)<ol> Legally blind - Having not more than 20/200 of visual acuity in the 
better eye with correcting lenses, or visual acuity greater than 20/200 but with 
a limitation in the field of vision such that the widest diameter of the visual 
field subtends an angle no greater than 20 degrees. 
<nl>(29)<ol> Light truck - As defined in Transportation Code, sec.541.201, any 
truck with a manufacturer's rated carrying capacity not to exceed two thousand 
pounds, including those trucks commonly known as pickup trucks, panel delivery 
trucks, and carryall trucks. 
<nl>(30)<ol> Make - The trade name of the vehicle manufacturer. 
<nl>(31)<ol> Net carrying capacity - 150 pounds multiplied by the seating 
capacity as determined by the manufacturer's rated seating capacity, exclusive 
of the driver's or operator's seat or in the case of a vehicle that is not rated 
by the manufacturer, an allowance of one passenger for each sixteen inches, 
exclusive of the driver's or operator's seat. 
<nl>(32)<ol> Nonprofit organization - An unincorporated association or society 
or a corporation that is incorporated or holds a certificate of authority under 
the Texas Non-Profit Corporation Act, as amended (Texas Civil Statutes, Article 
1396-1.01 et seq.). 
<nl>(33)<ol> Official - A representative of a taxing entity who is authorized to 
secure vehicle registration information for the purposes of taxation. 
<nl>(34)<ol> Owner - In accordance with Transportation Code, sec.502.001, any 
person who holds the legal title of a vehicle or who has the legal right of 
possession thereof, or the legal right of control of said vehicle. 
<nl>(35)<ol> Passenger car - In accordance with Transportation Code, 
sec.502.001, any motor vehicle other than a motorcycle, golf cart, or a bus, 
designed or used primarily for the transportation of persons. 
<nl>(36)<ol> Political subdivision - A county, municipality, local board, or 
other body of this state having authority to provide a public service. 
<nl>(37)<ol> Registration period - A 12-month period beginning on the first day 
of a calendar month and expiring on the last day of the last calendar month in 
that 12-month period. 
<nl>(38)<ol> Rental fleet - A fleet of five or more vehicles that are owned by 
the same owner, offered for rent or rented without drivers, and designated by 
the owner in the manner prescribed by the department as a rental fleet. 
<nl>(39)<ol> Rental trailer - A utility trailer that has a gross weight of 4,000 
pounds or less and is part of a rental fleet. 
<nl>(40)<ol> Road tractor - A vehicle designed for the purpose of mowing the 
right of way of a public highway or a motor vehicle designed or used for drawing 
another vehicle or a load and not constructed to carry: 
<nl>(A)<ol> an independent load; or 
(B) a part of the weight of the vehicle and load to be drawn.
<nl>(41)<ol> Service agreement - A contractual agreement which allows 
individuals or businesses to access the department's vehicle registration 
records. 
<nl>(42)<ol> Special category license plate - A special design license plate 
issued by the department under statutory authority. 
<nl>(43)<ol> Special category license plate fee - Statutorily or department 
required fee payable upon submission of an application for a special category 
license plate, symbol, or tab, and collected in addition to statutory motor 
vehicle registration fees. 
<nl>(44)<ol> Special district - A political subdivision of the state established 
to provide a single public service within a specific geographical area. 
<nl>(45)<ol> Tandem axle group - Two or more axles spaced 40 inches or more 
apart from center to center having at least one common point of weight 
suspension. 
<nl>(46)<ol> Token trailer - A:
<nl>(A)<ol> semitrailer that has a gross weight of more than 6,000 pounds and is 
operated in combination with a truck; or 
(B) truck-tractor that has been issued an apportioned license plate, a 
combination license plate, or a forestry vehicle license plate. 
<nl>(47)<ol> Tow truck - A motor vehicle or mechanical device adapted or used to 
tow, winch, or otherwise move disabled motor vehicles.
<nl>(48)<ol> Travel trailer - A house trailer-type vehicle or a camper trailer 
that is less than eight feet in width or 40 feet in length, exclusive of any 
hitch installed on the vehicle and designed primarily for use as temporary 
living quarters in connection with recreational, camping, travel, or seasonal 
use and not as a permanent dwelling.
<nl>(49)<ol> Unconventional vehicle - A vehicle built entirely as machinery from 
the ground up, that is permanently designed to perform a specific function, and 
is not designed to transport property. 
<nl>(50)<ol> Vehicle - Every device in, or by which, any person or property is 
or may be transported or drawn upon a public highway, except devices used 
exclusively upon stationary rails or tracks. 
<nl>(51)<ol> Vehicle classification - The grouping of vehicles in categories for 
the purpose of registration, based upon design, carrying capacity, or use. 
<nl>(52)<ol> Vehicle description - Information regarding a specific vehicle, 
including, but not limited to, the vehicle make, year model, body style, and 
vehicle identification number. 
<nl>(53)<ol> Vehicle identification number - A number assigned by the 
manufacturer of a motor vehicle or the department that describes the motor 
vehicle for purposes of identification. 
<nl>(54)<ol> Vehicle inspection sticker - A sticker issued by the Texas 
Department of Public Safety signifying that a vehicle has passed all applicable 
safety and emissions tests. 
<nl>(55)<ol> Vehicle registration insignia - A license plate, symbol, tab or 
other device issued by the department evidencing that all applicable fees have 
been paid for the current registration period which allows the vehicle to be 
operated upon the public highways. 
<nl>(56)<ol> Vehicle registration record - Information contained in the 
department's files which reflects, but is not limited to, the make, vehicle 
identification number, year model, body style, license number, and the name of 
the registered owner. 
<nl>(57)<ol> Volunteer fire department - An association that is organized for 
the purpose of answering fire alarms, extinguishing fires, and providing 
emergency medical services. 

sec.17.28. Special Category License Plates, Symbols, and Tabs. 
(a) (No change.) 
(b) Plate Categories. The department will issue the following special category 
license plates, symbols, and tabs. 
(1) (No change.) 
<nl>(2)<ol> Animal friendly license plates. In accordance with Transportation 
Code sec.502.291, the department will issue specially designed license plates 
bearing the words "Animal Friendly" to a person who owns a passenger car or 
light truck that has a manufacturer's rated carrying capacity of one ton or 
less. 
<nl>(3)<ol> Big Bend National Park license plates. In accordance with 
Transportation Code sec.502.295, the department shall issue specially designed 
license plates bearing one or more graphic images of significant features of Big 
Bend National Park to a person who owns a passenger car or light truck that has 
a manufacturer's rated carrying capacity of one ton or less. 
[(2) Antique license plate. In accordance with Transportation Code, sec.502.275, 
the department will issue Antique license plates bearing the words "Antique 
Vehicle" or "Antique Motorcycle" to an owner of a vehicle that is:] 
[(A) 25 or more years old;] 
[(B) used for exhibitions, club activities, parades, and other functions of 
public interest; and] 
[(C) not used for regular transportation.] 
[(3) Antique Validation tab. In accordance with Transportation Code, 
sec.502.275, the department will issue Antique Validation tabs for display on 
existing Texas license plates that were originally issued the same year as the 
model year of the antique vehicle.] 
(4)-(5) (No change.) 
(6) Classic license plates. In accordance with Transportation Code, sec.502.274, 
the department will issue Classic license plates bearing the legend "Classic 
Auto<nl>,<ol>" [ or ] "Classic Truck<nl>,<ol>" <nl>or "Classic Motorcycle"<ol> 
to an owner of a passenger car or light commercial motor vehicle that: 
(A)-(B) (No change.) 
(7)-(9) (No change.) 
<nl>(10)<ol> County Judge license plates. In accordance with Transportation 
sec.502.293, the department will issue special license plates bearing the legend 
"County Judge" to a person who: 
<nl>(A)<ol> submits proof with the application that the person is a judge of a 
county court of this state established by Article V, sec.15, Texas Constitution; 
and 
<nl>(B)<ol> owns a passenger car or light truck that has a manufacturer's rated 
carrying capacity of one ton or less. 
<nl>(11)<ol> [(10)] Disabled Veteran license plate. 
(A) In accordance with Transportation Code, sec.502.254, the department will 
issue Disabled Veteran license plates bearing the words "Disabled Vet" to the 
following owners of a passenger car or light commercial vehicle that has a 
manufacturer's rated carrying capacity of one ton or less:
(i) a veteran of the U.S. Armed Forces with a service-connected disability of at 
least 60%, or a 40% service connected disability due to the amputation of a 
lower extremity, who receives compensation from the federal government because 
of such disability; 
(ii) an organization that owns a motor vehicle used exclusively for the 
transportation of disabled veterans without charge; or 
(iii) the surviving spouse of a deceased disabled veteran, if such license 
plates were issued to the veteran prior to the time of death <nl> or the 
surviving spouse applies for the disabled veteran license plate after the 
veteran's death as long as the deceased disabled veteran was eligible for the 
veteran license plates<ol>, and as long as that surviving spouse remains 
unmarried. 
(B) A vehicle on which Disabled Veteran license plates are displayed is exempt 
from the payment of parking fees in accordance with Transportation Code, 
sec.681.008. 
<nl>(12)<ol> [(11)] Disaster Relief license plates. In accordance with 
Transportation Code, sec.502.203, the department will issue Disaster Relief 
license plates bearing the word "Disaster" to an owner of a commercial motor 
vehicle, truck-tractor, trailer, and semitrailer that is the property of and 
used exclusively by a non-profit, disaster relief organization in emergency 
situations. 
<nl>(13)<ol> Exhibition license plates. In accordance with Transportation Code, 
sec.502.275, the department will issue Exhibition license plates bearing the 
words "Antique Vehicle" or "Antique Motorcycle" to an owner of a completed 
vehicle that: 
<nl>(A)<ol> has a frame, body, and motor that is 25 or more years old; 
<nl>(B)<ol> is used for exhibitions, club activities, parades, and other 
functions of public interest; and 
<nl>(C)<ol> is not used for regular transportation. 
<nl>(14)<ol> Exhibition validation tab. In accordance with Transportation Code, 
sec.502.275, the department will issue Exhibition Validation tabs displaying the 
word "Antique" for display on existing Texas license plates that were originally 
issued the same year as the model year of the exhibition vehicle. 
<nl>(15)<ol> [(12)] Foreign Organization license plates. In accordance with 
<nl>Transportation Code, sec.502.290 <ol> [Texas Civil Statutes, Article 6675a-
5e.4(a-1) as amended], the department will issue Foreign Organization license 
plates bearing the words "Foreign Organization" to an instrumentality 
established by a foreign government recognized by the United States before 
January 1, 1979, that is without official representation or diplomatic relations 
with the United States, for a passenger car or light commercial motor vehicle 
that has a manufacturer's rated carrying capacity of one ton or less. 
<nl>(16)<ol> [(13)] Forestry Vehicle license plates. In accordance with 
Transportation Code, sec.502.280, the department will issue Forestry Vehicle 
license plates bearing the words "Forestry Vehicle" to an owner of a vehicle 
used exclusively for transporting forest products in their natural state, 
including logs, debarked logs, untreated ties, stave bolts, plywood bolts, 
pulpwood billets, wood chips, stumps, sawdust, moss, bark, wood shavings, and 
property used in the production of those products.
<nl>(17)<ol> [(14)] Former Military Vehicle <nl> license plate<ol> [registration 
number]. In accordance with <nl> Transportation Code, sec.502.275<ol> [Texas 
Civil Statutes Article 6675a-5a, as amended], the department will issue a 
<nl>Military Vehicle license plate bearing the words "Military Vehicle" to a 
vehicle, to be attached to the rear<ol> [registration number in lieu of 
displaying a symbol, tab, or license plate to the owner] of a vehicle that: 
(A) is a passenger car, truck, or motorcycle; 
(B) has been, but no longer is, used by the armed forces of a national 
government; 
(C) displays markings indicating it was a military vehicle;
(D) is used for exhibitions, club activities, parades, and other functions of 
public interest; and 
(E) is not used for regular transportation. 
<nl>(18)<ol> [(15)] Former Prisoner of War license plates. In accordance with 
Transportation Code, sec.502.257, the department will issue Former Prisoner of 
War license plates bearing the words "Former POW" to an owner of a passenger car 
and light commercial vehicle that has a manufacturer's rated carrying capacity 
of one ton or less, if the owner provides evidence that he or she is: 
(A) honorably discharged from the U.S. Armed Forces and was captured and 
incarcerated by an enemy of the United States during a period of conflict with 
the United States; or 
(B) the surviving spouse of a former prisoner of war and remains unmarried. 
<nl>(19)<ol> Gold Star Mother license plates. In accordance with Transportation 
Code, sec.502.292, the department will issue Gold Star Mother License Plates 
bearing the words "Gold Star Mother" to a person who: 
<nl>(A)<ol> is the mother of a person who died while serving in the United 
States Armed Forces; 
<nl>(B)<ol> is the owner of a passenger car or light truck that has a 
manufacturer's rated carrying capacity of one ton or less; and
<nl>(C)<ol> completes and signs an application form provided by the department. 
<nl>(20)<ol> Golf cart license plates. 
<nl>(A)<ol> In accordance with Transportation Code, sec.502.284, the department 
will issue Golf Cart license plates bearing the words "Golf Cart" to an owner of 
a golf cart, if the owner: 
<nl>(i)<ol> resides on real property that is owned or under the control of the 
United States Army Corps of Engineers; 
<nl>(ii)<ol> is required by that agency to register the owner's golf cart; 
<nl>(iii)<ol> resides in a county that borders another state; 
(iv) resides in a county whose population is more than 95,000 but less than 
100,000; and 
<nl>(v)<ol> applies for and pays the $10 fee to obtain a golf cart license 
plate. 
<nl>(B)<ol> Golf carts issued license plates under this paragraph: 
<nl>(i)<ol> are prohibited from operation on public roads, except as provided in 
subparagraph (C) of this paragraph; 
<nl>(ii)<ol> are not subject to normal vehicle registration requirements; and 
<nl>(iii)<ol> are exempt from Transportation Code, Chapter 547, concerning 
required vehicle equipment, and Transportation Code, sec.601.051 concerning 
proof of financial responsibility. 
<nl>(C)<ol> Those golf carts not meeting the criteria in subparagraph (A)(i)-
(iv) of this paragraph are not required to be registered, and are also exempt 
from Transportation Code, Chapter 547 and Transportation Code, sec.601.051, if 
the golf cart is driven to or from a golf course and operated: 
<nl>(i)<ol> in the daytime and the operation does not exceed a distance of two 
miles from the point of origin to the destination; or 
<nl>(ii)<ol> entirely within a master planned community with a uniform set of 
restrictive covenants that has had a plat approved by a county or municipality. 
<nl>(D)<ol> Operation of any golf cart, except those detailed in subparagraphs 
(A) and (C) of this paragraph, on public property or other property where the 
state has law enforcement jurisdiction, requires registration in accordance with 
current registration laws. Whether a vehicle is designed as a 4-wheeled truck, 
4-wheeled passenger, or 3-wheeled motorcycle determines the classification under 
which the golf cart must be registered. These golf carts are not exempt from 
Transportation Code, Chapter 547 and Transportation Code, sec.601.051. 
<nl>(21)<ol> Houston Livestock Show and Rodeo license plates. In accordance with 
Transportation Code, sec.502.293, the department will issue special license 
plates bearing the words "Houston Livestock Show and Rodeo" to a person who owns 
a passenger car or light truck that has a manufacturer's rated carrying capacity 
of one ton or less. 
<nl>(22)<ol> [(16)] Honorary Consul license plates. In accordance with 
Transportation Code, sec.502.267, the department will issue Honorary Consul 
license plates bearing the words "Honorary Consul" to a person who: 
(A) owns a passenger car or light commercial vehicle that has a manufacturer's 
rated carrying capacity of one ton or less; and 
(B) is an honorary consul authorized by the United States government to perform 
consular duties. 
<nl>(23)<ol> Keep Texas Beautiful license plates. In accordance with 
Transportation Code, sec.502.2731, the department will issue Keep Texas 
Beautiful License Plates bearing the words "Keep Texas Beautiful" to an owner of 
a passenger car or light commercial motor vehicle that has a manufacturer's 
rated carrying capacity of one ton or less. 
<nl>(24)<ol> [(17)] Korea Veteran license plates. In accordance with 
Transportation Code, sec.502.263, the department will issue Korea Veteran 
license plates bearing the words "Korea Veteran" to an owner of a passenger car 
or light commercial vehicle that has a manufacturer's carrying capacity rated of 
one ton or less, if the owner provides evidence that he or she: 
(A) served in a branch of the U.S. Armed Forces after June 26, 1950 and before 
February 1, 1955; and 
(B) was honorably discharged from the U.S. Armed Forces. 
<nl>(25)<ol> [(18)] Legion of Valor license plates. In accordance with 
Transportation Code, sec.502.2555 [Texas Civil Statutes, Article 6675a-5k as 
amended], the department will issue Legion of Valor license plates bearing the 
words "Legion of Valor" to an owner of a passenger car or light commercial 
vehicle that has a manufacturer's carrying capacity rate of one ton or less, if 
the owner provides evidence that he or she is a honorably discharged veteran of 
the armed forces of the United States or is a member of the armed forces of the 
United States on active duty, and is the recipient of one of the following 
military decorations: 
(A) Air Force Cross; 
(B) Air Force Distinguished Service Cross; 
(C) Army Distinguished Service Cross; 
(D) Navy Cross; or 
(E) Congressional Medal of Honor. 
<nl>(26)<ol> [(19)] Log Loader Vehicle license plates. In accordance with 
Transportation Code, sec.502.279, the department will issue Log Loader Vehicle 
license plates bearing the words "Log Loader" to an owner of a vehicle that does 
not haul logs and on which is mounted machinery used only for loading logs on 
other vehicles. 
<nl>(27)<ol> [(20)] Non-Profit Organization license plates. In accordance with 
Transportation Code, sec.502.273, the department will issue Non-Profit 
Organization license plates bearing the insignia of a non-profit organization to 
an organization member who is an owner of a passenger car or a light commercial 
vehicle that has a manufacturer's rated carrying capacity of one ton or less. 
<nl>(28)<ol> [(21)] Operation Desert Storm license plates. In accordance with 
Transportation Code, sec.502.265, the department will issue Operation Desert 
Storm license plates bearing the words "Desert Storm" to an owner of a passenger 
car or light commercial vehicle that has a manufacturer's rated carrying 
capacity of one ton or less, if the owner provides evidence that he or she: 
(A) took part in Operation Desert Shield/Storm as a member of the U.S. Armed 
Forces; and 
(B) is an honorably discharged veteran or remains a member of the U.S. Armed 
Forces. 
<nl>(29)<ol> [(22)] Parade license plates. In accordance with Transportation 
Code, sec.502.283, the department will issue Parade license plates bearing the 
suffix "PAR" to a non-profit organization that owns and operates a motor vehicle 
designed, constructed, and used primarily for parade purposes. 
<nl>(30)<ol> [(23)] Peace Officer license plates. In accordance with Texas Civil 
Statutes, Article 6675a-5q, the department will issue Peace Officer license 
plates bearing the words "To Protect and Serve," inscribed above an insignia 
depicting a yellow rose superimposed on the outline of a badge, to the owner of 
a passenger car or light commercial vehicle that has a manufacturer's rated 
carrying capacity of one ton or less, if the owner provides evidence that he or 
she: 
(A) has been wounded in the line of duty as a peace officer; or 
(B) is the surviving spouse, parent, or adult child of a person killed in the 
line of duty as a peace officer. 
<nl>(31)<ol> [(24)] Pearl Harbor Survivor license plates. 
(A) In accordance with Transportation Code, sec.502.259, the department will 
issue Pearl Harbor Survivor license plates bearing the legend "Pearl Harbor 
Survivor" to an owner of a passenger car or light commercial vehicle that has a 
manufacturer's rated carrying capacity of one ton or less, if the owner provides 
evidence that he or she: 
(i) served in the U.S. Armed Forces; 
(ii) was stationed in the Hawaiian islands on December 7, 1941; and 
(iii) survived the attack on Pearl Harbor. 
(B) Pearl Harbor license plates may be issued to the surviving spouse of a Pearl 
Harbor survivor for as long as the surviving spouse remains unmarried. 
<nl>(32)<ol> [(25)] Personalized license plates. In accordance with 
Transportation Code, sec.502.251, the department will issue Personalized license 
plates, subject to the restrictions of subsection (d)(5) of this section, which 
display an approved personalized license plate number, to owners of all 
classifications of vehicles except: 
(A) those vehicles bearing license plates which receive full or partial 
exemption from regular registration fees<nl>, excluding Metal Dealer license 
plates<ol>; and 
(B) trailers and semitrailers with gross weights in excess of 10,000 pounds. 
(33) Professional Sports Team license plates. In accordance with Transportation 
Code sec.502.2703, the department will issue Professional Sports Team license 
plates bearing the name and insignia of qualifying professional sports teams to 
an owner of a passenger car or light commercial vehicle that has a 
manufacturer's rated carrying capacity of one ton or less. The department will 
issue such plates for teams if authorization for use of that team's insignia is 
given to the department without payment to the team or any major league 
properties organization.
<nl>(34)<ol> [(26)] Purple Heart license plates.
(A) In accordance with Transportation Code, sec.502.260, the department will 
issue Purple Heart license plates bearing the words "Purple Heart" to an owner 
of a passenger car or light commercial motor vehicle that has a manufacturer's 
rated carrying capacity of one ton or less, if the owner provides evidence that 
he or she is[:]
[(i)] a recipient of the Purple Heart medal[;] and:
<nl>(i)<ol> [(ii)] an honorably discharged veteran or remains on active duty 
with U.S. Armed Forces; or [.]
(ii) a civilian national of the United States who is an employee or a former 
employee of a branch of the United States armed forces.
(B) Purple Heart license plates may be issued to the surviving spouse of a 
Purple Heart medal recipient for as long as the surviving spouse remains 
unmarried.
<nl>(35)<ol> Read to Succeed license plates. In accordance with Transportation 
Code, sec.502.292, the department will issue Read to Succeed license plates to 
an owner of a passenger car or light commercial motor vehicle that has a 
manufacturer's rated carrying capacity of one ton or less. 
<nl>(36)<ol> [(27)] State Capitol license plates. In accordance with 
Transportation Code, sec.502.269, the department will issue State Capitol 
license plates depicting the state capitol to an owner of a passenger car or 
light commercial motor vehicle that has a manufacturer's rated carrying capacity 
of one ton or less. 
<nl>(37)<ol> [(28)] State Official license plates. In accordance with 
<nl>Transportation Code, sec.502.295<ol> [Senate Concurrent Resolution No. 37, 
67th Legislature; Senate Concurrent Resolution No. 70, 71st Legislature; and 
House Concurrent Resolution No. 138, 73rd Legislature;], the department will 
issue State Official license plates bearing the appropriate designation to 
<nl>an<ol> [a vehicle] owner <nl> of a passenger car or light duty truck,<ol> 
who is a member of the U.S. Congress or Texas Legislature, is a U.S. Judge, [or] 
Magistrate, <nl> or State Judge,<ol> and to the following elected state 
officials: 
(A)-(B) (No change.) 
(C) <nl>A member of the legislature<ol> [Speaker of the House]; 
(D) Attorney General; 
(E) Comptroller of Public Accounts; 
[(F) State Treasurer;] 
<nl>(F)<ol> [(G)] General Land Office Commissioner;
<nl>(G)<ol> [(H)] Agriculture Commissioner;
<nl>(H)<ol> [(I)] Secretary of State; 
<nl>(I)<ol> [(J)] Railroad Commissioner; 
<nl>(J)<ol> [(K)] Supreme Court Justice; 
<nl>(K)<ol> [(L)] Court of Criminal Appeals Judge; and; 
<nl>(L)<ol> [(M)] Board of Education Member.
<nl>(38)<ol> [(29)] Texas Aerospace Commission license plates. In accordance 
with Transportation Code, sec.502.271, the department will issue Texas Aerospace 
Commission license plates bearing the words "Aerospace Commission" to an owner 
of a passenger car or light commercial motor vehicle that has a manufacturer's 
rated carrying capacity of one ton or less. 
<nl>(39)<ol> Texas Commission on Alcohol and Drug Abuse (Boy Scout) license 
plates. In accordance with Transportation Code, sec.502.293, the department will 
issue Texas Commission on Alcohol and Drug Abuse license plates to a person who 
owns a passenger car or light truck that has a manufacturer's rated carrying 
capacity of one ton or less.
<nl>(40)<ol> [(30)] Texas Commission on the Arts license plates. In accordance 
with Transportation Code, sec.502.272, the department will issue Texas 
Commission on the Arts license plates bearing the words "State of the Arts" to 
an owner of a passenger car or light commercial vehicle that has a 
manufacturer's rated carrying capacity of one ton or less.
<nl>(41)<ol> [(31)] Texas National Guard and State Guard license plates. In 
accordance with Transportation Code, sec.502.256, the department will issue 
Texas National Guard and State Guard license plates bearing the words "Texas 
Guard" to an owner of a passenger car or light commercial motor vehicle that has 
a manufacturer's rated carrying capacity of one ton or less, if the owner 
provides evidence that he or she is: 
(A) an active member of the Texas Army National Guard, the Texas Air National 
Guard, or the Texas State Guard; or 
(B) a retired guard member who has completed 20 years of satisfactory service. 
<nl>(42)<ol> [(32)] U.S. Armed Forces license plates. 
(A) In accordance with Transportation Code, sec.502.256, the department will 
issue U.S. Armed Forces license plates bearing the name of the appropriate 
branch of the U.S. Armed Forces to an owner of a passenger car or light 
commercial vehicle who provides evidence that the owner is an active, retired, 
or honorably discharged member of a branch of the U.S. Armed Forces. 
(B) U.S. Armed Forces license plates may be issued to the surviving spouse of a 
member killed in action for as long as that spouse remains unmarried. 
<nl>(43)<ol> [(33)] U.S. Armed Forces Reserve license plates. In accordance with 
Transportation Code, sec.502.256, the department will issue U.S. Armed Forces 
Reserve license plates bearing the words "Armed Forces Reserve" to an owner of a 
passenger car or light commercial vehicle who provides evidence that the owner 
is a member of the United States Armed Forces Reserve. 
<nl>(44)<ol> [(34)] U.S. Coast Guard Auxiliary license plates. In accordance 
with Transportation Code, sec.502.261, the department will issue U.S. Coast 
Guard Auxiliary license plates bearing the words "Coast Guard Auxiliary" to an 
owner of a passenger car or light commercial vehicle who provides evidence the 
owner is a member of the United States Coast Guard Auxiliary. 
<nl>(45)<ol> [(35)] U.S. Marine Corps League license plates. In accordance with 
Transportation Code, sec.502.261, the department will issue Marine Corps League 
license plates bearing the words "Marine Corps League" and the emblem of the 
U.S. Marine Corps League to a person who: 
(A) owns a passenger car or light commercial vehicle that has a manufacturer's 
rated carrying capacity of one ton or less; and 
(B) provides evidence that the owner is a member of the Marine Corps League or 
its auxiliary. 
<nl>(46)<ol> [(36)] U.S. Olympic Committee license plates. In accordance with 
Texas Civil Statutes, Article 6675a-5q, the department will issue U.S. Olympic 
Committee license plates bearing the words "United States Olympic Committee" to 
an owner of a passenger car or light commercial motor vehicle that has a 
manufacturer's rated carrying capacity of one ton or less. 
<nl>(47)<ol> [(37)] Vietnam Veteran license plates. 
(A) In accordance with Transportation Code, sec.502.264, the department will 
issue Vietnam Veteran license plates bearing the words "Vietnam Veteran" to an 
owner of a passenger car or light commercial vehicle that has a manufacturer's 
rated carrying capacity of one ton or less, if the owner provides evidence that 
he or she: 
(i) served in a branch of the U.S. Armed Forces after August 4, 1964 and before 
May 8, 1975; and 
(ii) is an honorably discharged veteran or remains a member of the U.S. Armed 
Forces. 
(B) Vietnam Veteran license plates may be issued to the surviving spouse of a 
qualifying Vietnam veteran for as long as the surviving spouse remains 
unmarried. 
<nl>(48)<ol> Volunteer Advocate license plates. In accordance with 
Transportation Code, sec.502.292, the department will issue Volunteer Advocate 
license plates to an owner of a passenger car or light commercial motor vehicle 
that has a manufacturer's rated carrying capacity of one ton or less. 
<nl>(49)<ol> [(38)] Volunteer Firefighter license plates. In accordance with 
Transportation Code, sec.502.268, the department will issue Volunteer 
Firefighter license plates bearing the words "Vol Firefighter" to an owner of a 
passenger car or light commercial vehicle who provides a certificate of 
certification as a volunteer firefighter from the Texas Volunteer Firefighters 
and Fire Marshals Certification Board. 
<nl>(50)<ol> [(39)] World War II Veteran license plates. In accordance with 
Transportation Code, sec.502.262, the department will issue World War II Veteran 
license plates bearing the words "WWII Veteran" to an owner of a passenger car 
or light commercial vehicle that has a manufacturer's rated carrying capacity of 
one ton or less, if the owner provides evidence that he or she: 
(A) served in a branch of the U.S. Armed Forces after December 6, 1941 and 
before January 1, 1947; and 
(B) is an honorably discharged veteran or remains a member of the U.S. Armed 
Forces. 
(c) Initial application for special category license plates, symbols, or tabs. 
(1) (No change.)
(2) Fees and Documentation. 
(A) The application must be accompanied by registration fees as required by law, 
with the following special category license plates exempted from regular 
registration fees by statute: 
(i)-(v) (No change.)
<nl>(vi)<ol> Golf Carts that comply with all of the criteria for a golf cart 
plate prescribed by subsection (b)(20) of this section; 
<nl>(vii)<ol> [(vi)] Legion of Valor; 
<nl>(viii)<ol> [(vii)] Log Loader; 
<nl>(ix)<ol> [(viii)] Parade; 
<nl>(x)<ol> [(ix)] Pearl Harbor Survivor (first set per applicant only); and 
<nl>(xi)<ol> [(x)] Purple Heart Recipient (first set per applicant only). 
(B) The application must be accompanied by statutorily prescribed special 
category license plate fees. 
(C) The application must be accompanied by local fees or other fees as may be 
prescribed by law and collected in conjunction with registering a vehicle, with 
the exception of vehicles bearing license plates described in subparagraph (A) 
of this <nl>paragraph<ol> [section], which are exempted from such fees. 
(D) The application must include prescribed evidence of eligibility for any 
special category license plates other than personalized, collegiate, <nl> Animal 
Friendly, Big Bend National Park, Golf Cart, Houston Livestock Show and Rodeo, 
Keep Texas Beautiful, Professional Sports Teams, Read to Succeed <ol>, State 
Capitol, Texas Aerospace Commission, <nl>Texas Commission on Alcohol and Drug 
Abuse (Boy Scout),<ol> Texas Commission on the Arts,[and] U.S. Olympic 
Committee, and <nl>Volunteer Advocate<ol> which may include, but is not limited 
to: 
(i) a license issued by a governmental entity; 
(ii) a letter issued by a governmental entity on that agency's letterhead; 
(iii) discharge papers; and 
(iv) marriage and death certificates. 
<nl>(E)<ol> Applications for Exhibition license plates must include a photograph 
of the completed vehicle for which Exhibition registration is requested. 
(3) Place of application. All initial applications for special category license 
plates must be made with the department, with the exception of<nl>:<ol> 
<nl>(A)<ol> "Cotton Vehicle" license plates which may be made either with the 
department or with the County Tax Assessor-Collector in the owner's resident 
county<nl>; and<ol> 
<nl>(B)<ol> Golf Cart license plates which must be made at the County Tax 
Assessor-Collector in the owner's resident county. 
(d) Initial issuance of special category license plates, symbols, or tabs. 
(1) (No change.) 
(2) Number of plates issued 
(A) (No change.) 
(B) One plate. One license plate will be issued per vehicle for the following 
license plate categories: 
(i)-(ii) (No change.) 
<nl>(iii)<ol> Exhibition; 
<nl>(iv)<ol> [(iii)] Forestry Vehicle; 
<nl>(v)<ol> [(iv)] Log Loader; [ and]
<nl>(vi)<ol> [(v)] Parade; 
<nl>(vii)<ol> Military Vehicle; and 
<nl>(viii)<ol> Golf Cart. 
(C) Registration number. <nl>The identification number assigned by the military 
may be approved as the registration number in lieu of displaying Military 
Vehicle license plates on a Military Vehicle.<ol> [One registration number will 
be assigned for Former Military Vehicles. The applicant may select this number, 
or the department will assign it.] 
(3) (No change.) 
(4) Number of vehicles. 
(A) (No change.) 
(B) One vehicle. The following categories are limited by statute to one set of 
special category license plates per owner: 
(i)-(iii) (No change.) 
<nl>(iv)<ol> Gold Star Mother; 
<nl>(v)<ol> [(iv)] Legion of Valor; 
<nl>(vi)<ol> [(v)] Non-Profit Organization; [and] 
<nl>(vii)<ol> [(vi)] U.S. Armed Forces Reserves; [and] 
<nl>(viii)<ol> [(vii)] Volunteer Firefighter.
(C) <nl>Three<ol> [Two] vehicles. State Official license plates are limited to 
<nl>three<ol> [two] sets of special category license plates per owner. 
(5) Personalized plate numbers. 
(A) (No change.) 
(B) Character limit. A personalized license plate number may not contain more 
than six alpha or numeric characters, or a combination or such characters. 
Certain personalized special category license plates may not, depending upon the 
license plate design and space limitations, contain more than <nl>four or<ol> 
five alpha or numeric characters, or a combination of such characters. Spaces, 
hyphens, periods, or one silhouette of the state of Texas may be used in 
conjunction with the license plate number. 
(C) (No change.) 
(D) Categories not available. Personalized license plate numbers are not 
available for display on the following license plates: 
(i) Amateur Radio (other than the official call letters of the vehicle owner); 
(ii) <nl>Exhibition<ol> [Antique] Vehicle; 
(iii) Armed Forces Reserve; 
<nl>(iv)<ol> County Judge; 
<nl>(v)<ol> [(iv)] Cotton Vehicle; 
<nl>(vi)<ol> [(v)] Disabled Veteran; 
<nl>(vii)<ol> [(vi)] Disaster Vehicle; 
<nl>(viii)<ol> [(vii)] Farm Truck; 
<nl>(ix)<ol> [(viii)] Foreign Organization;
<nl>(x)<ol> [(ix)] Forestry Vehicle; 
<nl>(xi)<ol> [(x)] Former Prisoner of War; 
<nl>(xii)<ol> Golf Cart; 
<nl>(xiii)<ol> [(xi)] Honorary Consul; 
<nl>(xiv)<ol> [(xii)]) Legion of Valor; 
<nl>(xv)<ol> [(xiii)] Log loader; 
<nl>(xvi)<ol> [(xiv)] Machinery; 
<nl>(xvii)<ol> [(xv)] Parade; 
<nl>(xviii)<ol> [(xvi)] Permit; 
<nl>(xiv)<ol> [(xvii)] Soil Conservation; and
<nl>(xx)<ol> [(xiii)] Texas Guard. 
(E)-(F) (No change.) 
(e) Special Category license plate renewal. 
(1) Length of validation. All special category license plates, symbols, or tabs 
shall be valid for 12 months from the month of issuance, with the following 
exceptions. 
(A) Five year period. The following license plates and registration numbers are 
issued for a five year period or remainder of that period, and expire every five 
years in March; 
(i) <nl>Exhibition<ol> [Antique] license plates and tabs; 
(ii)-(iii) (No change.) 
(B) March expiration dates. The following license plates are issued for a 12 
month period, or remainder of that period, and expire annually in March: 
(i)-(ii) (No change.) 
<nl>(iii)<ol> County Judge; 
<nl>(iv)<ol> [(iii)] Disaster Relief; 
<nl>(v)<ol> [(iv)] Disabled Veteran; 
<nl>(vi)<ol> [(v)] Forestry Vehicle; 
<nl>(vii)<ol> [(vi)] Former Prisoner of War;
<nl>(viii)<ol> [(vii)] Legion of Valor; 
<nl>(ix)<ol> [(viii)] Pearl Harbor Survivor; and 
<nl>(x)<ol> [(ix)] State Official. 
(C)-(E) (No change.) 
(2) Renewal. 
(A) (No change.) 
(B) Return of Notice. Upon receipt of the renewal notice, the owner must return 
the renewal, statutory fee, if applicable, and any required documentation to the 
department <nl>with the exception of renewals for golf carts registered under 
subsection (b)(20) of this section. To validate registration, a golf cart owner 
shall return the renewal, statutory fee, and any required documentation to the 
county tax assessor- collector in his or her resident county<ol>. 
(C)-(D) (No change.) 
(E) Issuance of validation insignia. Upon receipt of the License Plate Renewal 
Notice as specified in this subsection, the department will issue registration 
validation insignia as specified in sec.17.22 of this title (relating to Motor 
Vehicle Registration), except for those plates listed in items (i) or (ii) of 
this paragraph or unless this section or other law require the issuance of new 
license plates to the owner. 
(i) New license plates shall be issued upon expiration for renewed 
<nl>Exhibition<ol> [Antique] Vehicle, Congressional Medal of Honor, Disaster 
Relief, Honorary Consular, Legion of Valor, Parade, and State Official license 
plates. 
(ii) New license plates shall be issued every six years for renewed personalized 
license plates, and every eight years for other license plate categories, in 
accordance with the provisions of sec.17.22 of this title (relating to Motor 
Vehicle Registration). 
(F) (No change.) 
(f) Transfer of special category license plates. 
(1) Transfer between vehicles. 
(A) 
(B) Non-transferable between vehicles. The following special category license 
plates, symbols, or tabs are non-transferable between vehicles:
(i) Exhibition [Antique] vehicle license plates and tabs; 
(ii)-(v) (No change.) 
(2) (No change.) 
(3) Transfer of military plates to surviving spouse. Upon the death of the 
owner, and proper application with the department, the following special 
category license plates may be transferred to a surviving spouse who remains 
unmarried: 
(A) (No change.) 
(B) Disabled Veteran[, if Disabled Veteran license plates were issued to the 
deceased veteran prior to the time of death]; 
(C)-(F) (No change.) 
(4) (No change.) 
(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 27, 1998.
TRD-9802969
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-8630

CHAPTER 21. Right of Way
SUBCHAPTER K. Control of Signs Along Rural Roads
43 TAC sec.sec.21.411, 21.421, 21.451, 21.471, 21.481, 21.521, 21.541, 21.542, 
21.551, 21.561, 21.572
The Texas Department of Transportation proposes amendments to sec.sec.21.411, 
21.421, 21.451, 21.471, 21.481, 21.521, 21.541, 21.551, 21.561, 21.572, and new 
sec.21.542, concerning the control of signs along rural roads. 
EXPLANATION OF PROPOSED AMENDMENTS AND NEW SECTION. Transportation Code, Chapter 
394 provides the commission and the department with the authority to regulate 
the erection and maintenance of outdoor advertising signs along rural roads. 
Senate Bill 370, sec.2.05, 75th Legislature, 1997, amended Chapter 394 to 
provide an exemption for directional signs no larger than 50 square feet, 
provided the signs are on private property and advertise a small business. 
Senate Bill 370, sec.2.06 changed the requirement that a sign may only be 
permitted within 800 feet of one or more recognized commercial or industrial 
business activities. The department may now issue permits for off-premise signs 
located within 800 feet of a recognized commercial or industrial business 
activity, or alternatively, within 800 feet of the office of a governmental 
entity. 
Previous sessions of the Legislature also amended Chapter 394 to restrict when 
the commission may regulate signs that are located in counties with a population 
of 2.4 million or more or in a municipality's extraterritorial jurisdiction, and 
to authorize the commission to impose administrative penalties for a violation 
of Chapter 394 or commission rule. 
In order to reflect these statutory changes and to be consistent with 
Transportation Code, Chapter 394, the Administrative Procedure Act, changing 
technology in sign erection, and current department policy, the department 
proposes amendments to the aforementioned sections and proposes new sec.21.542. 
Section 21.411. To comply with Senate Bill 370, sec.2.05 and to be consistent 
with the usage of the term "governmental entity" in Chapter 394, this section is 
amended to add a definition for "governmental entity" and "small business." This 
section has been changed to number the definitions in accordance with the Texas 
Register style. 
Section 21.421. To comply with Senate Bill 370, sec.2.05, this section is 
amended to add an exemption from regulation for off-premise signs on private 
property which are no larger than 50 square feet, and which advertise the name 
of a small business and directions to same. To be consistent with usage of the 
term in Chapter 394, this section is amended to specify that a sign erected by a 
"governmental entity" is exempt from regulation. To enable more chamber of 
commerce organizations to erect signs promoting their city or county, this 
section is also amended to expand the area in which a chamber of commerce 
organization may place an exempt sign. The amendments would allow those signs to 
be erected within a county in the case of a county chamber of commerce and, in 
the case of a city chamber of commerce, the extraterritorial jurisdiction of 
that city. The existing rule only allows an exemption if the sign is inside the 
city limits of the city supported by the chamber of commerce organization. The 
area inside the city limits is outside the department's jurisdiction under 
Chapter 394. Additionally, to be consistent with the exempt chamber of commerce 
signs allowed along interstate and primary highways, and to carry out the 
legislative intent in Chapter 394 of promoting the safety and welfare of the 
traveling public by preserving and enhancing scenic beauty, chamber of commerce 
signs are limited in size to no more than 150 square feet. 
To comply with Transportation Code, sec.394.061(b), sec.21.421(c) is amended by 
changing the population criteria for "populous" counties from 1.7 million to 2.4 
million, and by specifying that this subchapter is subject to regulatory 
preemption in these counties. To comply with Local Government Code, sec.216.902, 
sec.21.421(d) is amended to more accurately reflect the department's regulatory 
authority inside a municipality's extraterritorial jurisdiction, and to specify 
that a municipality has the authority to decide whether the department may 
control signs in its extraterritorial jurisdiction. Finally, to comply with 
Transportation Code, sec.394.063, new sec.21.421(e) was added to exempt certain 
on-premise signs located in the unincorporated area of a county with a 
population of more than 2.4 million or in a county that borders a county with 
that population. 
Section 21.451. To comply with Senate Bill 370, sec.2.06, this section is 
amended by deleting the requirement that a sign be located within 800 feet of 
two adjacent recognized commercial activities in order to be permitted. This 
section will now allow a sign to be permitted within 800 feet of a recognized 
commercial or industrial activity, or alternatively, within 800 feet of the 
office of a governmental entity. 
Section 21.471. To allow for the use of changing technology, while protecting 
the safety of the traveling public, this section is amended by adding new 
sec.21.471(f) to allow the use of tri-vision, changeable message signs, provided 
that the messages change within one second and stay stationery for at least 10 
seconds. The limitation on the frequency of the change was based on the concern 
that there could be an undue distraction to the public if the message changes 
too frequently. Similar limitations have been imposed in other states. Section 
21.481. To comply with Transportation Code, sec.394.046, this section is amended 
by adding new sec.21.481(b), which specifies that each face area of a double-
faced, back-to-back, or V-type sign is considered to be a separate sign for the 
purpose of computing the face area of a sign. Section 21.521. This section is 
amended to reflect the reorganization of the department and to update department 
titles. 
Section 21.541. This section is amended to reflect the reorganization of the 
department and to update department titles. Additionally, to be consistent with 
the requirements of the Administrative Procedure Act, Government Code, Chapter 
2001, and with sec.21.572, this section is amended by deleting sec.21.541(b), 
which provided an appeal procedure for a person whose permit is revoked. 
Section 21.542. To comply with Transportation Code, sec.394.082, new sec.21.542 
is proposed to specify that the commission may impose administrative penalties 
for a violation of the provisions of Chapter 394 or a commission rule 
implementing that chapter. 
Section 21.551. To allow for the use of tri-vision technology, sec.21.551(b) was 
amended to delete the prohibition against using intermittent messages in a sign. 
Section 21.561. To ensure that all signs erected along rural roads comply with 
Chapter 394 and department rules, sec.21.561(a)(3) was added to state that a 
sign must be removed if a permit is revoked in accordance with sec.21.541. To 
ensure the department does not take an action which might be considered to be a 
taking of private property, sec.21.561(b) has been deleted. That subsection 
provides that when a sign becomes non-conforming due to the cessation of a 
business activity for a period of six months, the sign will be removed at the 
owner's expense within the following six months. The department has never 
required the removal of a sign under these circumstances. 
Section 21.572. To comply with the Administrative Procedure Act and sec.21.542, 
this section is amended by specifying that notice and opportunity for a hearing 
must be provided before the department may impose administrative penalties. 
Additionally, the term "cancellation" has been replaced with the term 
"revocation" to be consistent with the language used in other sections of this 
subchapter. Finally, the term "or registration" was removed from this section as 
Chapter 394 does not authorize the commission to cancel or revoke a sign 
registration.
FISCAL NOTE. Frank J. Smith, Director, Budget and Finance Division, has 
certified that for the first five-year period the amendments and new section are 
in effect, there will be no fiscal implications for state or local government as 
a result of enforcing or administering the amendments and new section. While 
there may be increased permit revenues from additional conforming sign locations 
within 800 feet of a commercial or industrial business activity or a government 
office, these revenues will be offset by the costs associated with issuing the 
additional permits and performing inventories and enforcement activities. 
Additionally, the increased costs and revenues may not be quantified as those 
costs and revenues will depend on the number of new signs erected. There are no 
anticipated costs for persons required to comply with the sections as proposed. 
Gary Bernethy, P.E., Director, Right of Way Division, has determined that there 
will be no significant impact on local economies or overall employment as a 
result of enforcing or administering the amendments and new section.
PUBLIC BENEFIT. Mr. Bernethy has also determined that for each year of the first 
five years the amendments and new section are in effect, the public benefit 
anticipated as a result of enforcing or administering the amendments and new 
section will be to more effectively regulate the erection and maintenance of 
signs along rural roads and to ensure those signs are erected in compliance with 
Transportation Code, Chapter 394, thereby maximizing the welfare and safety of 
the traveling public. There may be a benefit to small businesses, as the 
amendments and new section will allow those businesses to be advertised with 
signs containing larger face areas. Additionally, there will be more conforming 
sign locations along rural roads as a result of allowing signs to be located 
within 800 feet of a business or government office. This may also have a 
positive effect on small businesses. 
PUBLIC HEARING. Pursuant to the Administrative Procedure Act, Government Code, 
Chapter 2001, the Texas Department of Transportation will conduct a public 
hearing to receive comments concerning the proposed amendments and new section. 
The public hearing will be held at 1:30 p.m. on March 24, 1998, in the first 
floor hearing room of the Dewitt C. Greer State Highway Building, 125 East 11th 
Street, Austin, Texas and will be conducted in accordance with the procedures 
specified in 43 TAC sec.1.5. Those desiring to make comments or presentations 
may register starting at 1:00 p.m. Any interested persons may appear and offer 
comments, either orally or in writing; however, questioning of those making 
presentations will be reserved exclusively to the presiding officer as may be 
necessary to ensure a complete record. While any person with pertinent comments 
will be granted an opportunity to present them during the course of the hearing, 
the presiding officer reserves the right to restrict testimony in terms of time 
and repetitive content. Organizations, associations, or groups are encouraged to 
present their commonly held views and identical or similar comments through a 
representative member when possible. Comments on the proposed text should 
include appropriate citations to sections, subsections, paragraphs, etc. for 
proper reference. Any suggestions or requests for alternative language or other 
revisions to the proposed text should be submitted in written form. 
Presentations must remain pertinent to the issues being discussed. A person may 
not assign a portion of his or her time to another speaker. A person who 
disrupts a public hearing must leave the hearing room if ordered to do so by the 
presiding officer. Persons with disabilities who plan to attend this meeting and 
who may need auxiliary aids or services such as interpreters for persons who are 
deaf or hearing impaired, readers, large print or braille, are requested to 
contact Eloise Lundgren, Director, Public Information Office, 125 East 11th 
Street, Austin, Texas 78701-2483, (512) 463-8588 at least two working days prior 
to the hearing so that appropriate services can be provided.
SUBMITTAL OF COMMENTS. Written comments on the proposed amendments and new 
section may be submitted to Gary Bernethy, P.E., Director, Right of Way 
Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for 
receipt of comments will be 5:00 p.m. on April 6, 1998. 
STATUTORY AUTHORITY. The amendments and new section 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 394, which authorizes the commission to adopt rules to regulate 
the erection or maintenance of signs along rural roads. 
No other statutes, articles, or codes are affected by the proposed amendments 
and new section. 

sec.21.411. Definitions. 
The following words and terms, when used in this <nl>subchapter<ol> [chapter], 
shall have the following meanings, unless the context clearly indicates 
otherwise. 
<nl>(1)<ol> Act - Transportation Code, Chapter 394. 
<nl>(2)<ol> Commission - The Texas Transportation Commission. 
<nl>(3)<ol> Department - The Texas Department of Transportation.
<nl>(4)<ol> Erect - To construct, build, raise, assemble, place, affix, attach, 
embed, create, paint, draw, or in any way bring into being or establish, except 
when performed incidental to the change of an advertising message or to normal 
maintenance or repair of an existing sign. 
<nl>(5)<ol> Governmental entity - The state, an agency of the state, or a 
political subdivision of the state, including a county, municipality, public 
school district, or special purpose district. 
<nl>(6)<ol> Main traveled way - The through traffic lanes exclusive of frontage 
roads, auxiliary lanes, and ramps. 
<nl>(7)<ol> Normal maintenance - The process of keeping a sign in good repair. 
When the sign is being converted from a multiple pole structure to a monopole 
structure or is being repaired at a cost in excess of 50% of the cost of 
erecting a new sign of the same type at the same location, each such action 
constitutes a replacement rather than normal maintenance and a sign permit will 
be required if the sign is an off-premise sign. No sign required to be 
registered or permitted may be enlarged more than 10% of the size shown on the 
permit or registration without first obtaining a permit authorizing such 
enlargement. Lighting may not be added to any sign nor may more intense lighting 
be added to any sign without first obtaining a permit authorizing such addition. 
No person shall erect, repair, or maintain a sign while such person or the 
equipment being used is on any road right-of-way.
<nl>(8)<ol> Off-premise sign - A sign displaying advertising copy that pertains 
to a business, person, organization, activity, event, place, service, or product 
not principally located or primarily manufactured or sold on the premises on 
which the sign is located. 
<nl>(9)<ol> On-premise sign - A freestanding sign identifying or advertising a 
business, person, or activity, and installed and maintained on the same premises 
as the business, person, or activity.
<nl>(10)<ol> Permit - The authorization granted pursuant to action by the Texas 
Transportation Commission for the erection of a sign, subject to these sections 
and the Act. 
<nl>(11)<ol> Person - An individual, association, corporation, or other legal 
entity. 
<nl>(12)<ol> Portable sign - A sign designed to be mounted on a trailer, bench, 
wheeled carrier, or other nonmotorized mobile structure or on skids or legs. 
<nl>(13)<ol> Recognized commercial or industrial activities - Those activities 
customarily permitted only in zoned commercial or industrial areas except that 
none of the following shall be considered recognized commercial or industrial 
activities: 
(A) outdoor advertising structures; 
(B) agricultural, forestry, ranching, grazing, farming, and related activities, 
including, but not limited to, temporary wayside fresh produce stands; 
(C) activities not housed in a permanent building or structure having 
functioning water and sewage connections and functioning electrical connections; 
(D) activities conducted in a building primarily used as a residence; 
(E) railroad right-of-way; 
(F) activities more than 200 feet from the edge of the right-of-way of a rural 
road; 
(G) activities conducted only seasonally or which are not conducted an average 
of at least 30 hours per week or at least five days per week; 
(H) activities conducted in a building having less than 300 square feet of floor 
space devoted to such activities; 
(I) activities not conducted by human beings; 
(J) activities which have not existed at least 90 days. 
<nl>(14)<ol> Rural road - A road, street, way, highway, thoroughfare, or bridge 
that is located in an unincorporated area and is not privately owned or 
controlled, any part of which is open to the public for vehicular traffic, and 
over which the state or any of its political subdivisions have jurisdiction. 
<nl>(15)<ol> Sign - An outdoor structure, sign, display, light, device, figure, 
painting, drawing, message, plaque, poster, billboard, or other thing that is 
designed, intended, or used to advertise or inform and that is visible from the 
main-traveled way of a rural road. 
<nl>(16)<ol> Small business - A legal entity, including a corporation, 
partnership, or sole proprietorship that:
<nl>(A)<ol> is formed for the purpose of making a profit;
<nl>(B)<ol> is independently owned and operated; 
<nl>(C)<ol> is not a publicly held corporation; and 
<nl>(D)<ol> has fewer than 100 employees or less than $1 million in annual gross 
receipts in a fiscal year. 

sec.21.421. Exemptions. 
(a) The following are exempt from these sections: 
(1) (No change.) 
(2) a sign in existence before September 1, 1985, except that such sign shall be 
registered as provided in sec.21.431 of this title (relating to Registration of 
Existing Off-Premise Signs) [under the Act
(3)-(5) (No change.) 
(6) a sign erected by <nl>a governmental entity<ol> [an agency of the state or a 
political subdivision of the state];
(7)-(9) (No change.) 
<nl>(10)<ol> off-premise signs on private property which are no larger than 50 
square feet, advertising the name of a small business and directions to same; 
<nl>(11)<ol> [(10)] signs required by the Texas Railroad Commission at the 
principal entrance to or on each oil or gas producing property, well, tank, or 
measuring facility to identify or to locate such property; such signs shall be 
no larger in size than is necessary to comply with the Texas Railroad Commission 
regulations and will have no advertising message other than the name or logo of 
the company and the necessary directions; and 
<nl>(12)<ol> [(11)] signs owned by a chamber of commerce organization <nl>which 
are no larger than 150 square feet<ol>, if the message is limited to public 
service information, does not mention any specific person, service or product, 
and if the sign is located within the <nl>extraterritorial jurisdiction of 
the<ol> city [or town] supported by such organization<nl>, or within the county 
in the case of a county chamber of commerce<ol>. 
(b) (No change.) 
(c) This subchapter does not apply to off-premise portable signs in the 
unincorporated area of a county with a population of <nl>2.4 <ol> [1.7] million 
or more, according to the most recent federal census, provided such county is 
either prohibiting such signs or is regulating the location, height, size, 
anchoring, or use of such portable signs. 
(d) This subchapter does not apply to the extraterritorial jurisdiction of a 
municipality<nl>, unless the municipality allows the commission to regulate 
outdoor signs in the municipality's extraterritorial jurisdiction by filing a 
written notice with the commission<ol> [which has extended its outdoor sign 
ordinance within its area of extraterritorial jurisdiction <nl>(e)<ol> This 
subchapter does not apply to on-premise signs in the unincorporated area of a 
county with a population of more than 2.4 million, or of a county that borders a 
county with that population, if such a county has adopted an ordinance to 
regulate on-premise signs. In lieu of adopting an ordinance, a commissioners 
court of the county, by order, may allow the commission to regulate on-premise 
signs in the unincorporated area of the county in accordance with a municipal or 
county regulation.

sec.21.451. Spacing Requirements. 
(a)-(f) (No change.) 
(g) An off-premise sign may <nl>only<ol> be erected [ only] within 800 feet of 
at least <nl>one<ol> [two adjacent] recognized commercial or industrial 
<nl>activity, or the office of a governmental entity. The commercial or 
industrial activity or office building must be<ol> [activities, as herein 
defined, which are] on the same side of the rural road as the sign. 
(h) (No change.) 

sec.21.471. Face Restrictions. 
(a)-(e) (No change.) 
<nl>(f)<ol> Faces consisting of commercial electronic variable message signs 
(CEVMS), otherwise referred to as rotating slat signs or tri-vision signs may be 
used, provided that the rotation is completed within one second and the message 
is stationary for at least 10 seconds following a rotation. 

sec.21.481. Multiple Faced Signs. 
<nl>(a)<ol> For spacing purposes, multiple faced off-premise signs under common 
ownership, whether double-faced, back-to-back, or of V-type construction, shall 
be considered to be one sign provided they are either:
(1) physically contiguous; [or] 
(2) connected by the same structure or by cross-bracing; or 
(3) located in close proximity to each other, but in no event more than 15 feet 
apart at their nearest point. 
<nl>(b)<ol> Each face area of a double-faced, back-to-back, or V-type sign is 
considered to be a separate sign for the purpose of computing the face area 
under sec.21.471 of this title (relating to Face Restrictions). 

sec.21.521. On-Premise Sign Erectors.
(a) Any person engaged primarily in the business of erecting signs that 
advertise companies located or products sold on the premises on which the signs 
are erected must file with the <nl>director of the right of way division<ol> 
[state right-of-way engineer] on behalf of the commission a surety bond in the 
amount of at least $100,000 and payable to the commission to reimburse it for 
the cost of removing a sign unlawfully erected or maintained by the person; a 
person may not be exempted from this requirement. The form of such bond shall be 
as provided in a form prescribed by the department. Such bond shall be kept in 
force so long as such person remains primarily engaged in such business. 
(b) In the event a person files with <nl>the director of the right of way 
division<ol> [such state right of way engineer] of the department an affidavit 
to the effect that such person is not engaged primarily in the business of 
erecting on-premise signs, the statement in such affidavit shall be accepted as 
fact until probative evidence to the contrary has been received by <nl>the 
director of the right of way division<ol> [such state right-of-way engineer]. 

sec.21.541. Revocation of Permits.
[(a)] The commission, acting by and through the director of the right of way 
division [state right of way engineer], may suspend and revoke a permit which 
was issued under these sections if the permittee:
(1) violates any provisions or requirements of the Act; or
(2) violates a rule adopted by the commission under the Act [such statute].
[(b) A person whose permit is revoked may appeal the revocation to a district 
court in Travis County. The appeal must be taken not later than the 15th day 
after the date of such revocation.]

sec.21.542. Administrative Penalties.
(a) The commission, after notice and an opportunity for a hearing in accordance 
with sec.21.572 of this title (relating to Notice and Appeal), may impose an 
administrative penalty against a person who intentionally violates the Act or a 
rule adopted by the commission under the Act. 
(b) The amount of the administrative penalty may not exceed the maximum amount 
of a civil penalty that may be imposed under sec.394.081 of the Act. 

sec.21.551. Prohibited Signs. 
(a) (No change.) 
(b) No sign shall be erected which contains or is illuminated by any flashing, 
intermittent, or moving light [or intermittent message of any nature] except a 
sign giving solely public service information such as time, date, temperature, 
or weather. 
(c)-(e) (No change.) 

sec.21.561. Removal of Sign. 
(a) Upon written notification by a district engineer of the department, any off-
premise sign, other than an exempt sign, erected on or after September 1, 1985, 
must be removed if: 
(1) the sign was erected without a permit; [or]
(2) the permit is not kept renewed in accordance with the provisions in 
sec.21.441(c) of this title (relating to Permit for Erection of Off-Premise 
Sign)<nl>; or<ol> 
<nl>(3)<ol> a permit is revoked in accordance with sec.21.541 of this title 
(relating to Revocation of Permits).
[(b) When a commercial or industrial activity ceases and a sign is no longer 
located within 800 feet of at least two adjacent recognized commercial or 
industrial activities located on the same side of the roadway, the sign is no 
longer conforming in accordance with sec.21.451(g) of this title (relating to 
Spacing Requirements). When this situation has existed for a period of at least 
six months, the sign shall be removed within the following six months.] 
<nl>(b)<ol> [(c)] The owner shall remove the sign at the owner's expense. 

sec.21.572. Notice and Appeal. 
Upon determination that a permit [or registration] should be <nl>revoked or 
administrative penalties sought<ol> [cancelled], the director of right of way 
shall mail a notice of <nl>revocation or imposition of administrative 
penalties<ol> [cancellation] to the last known address of the holder of the 
permit [or registration] by certified mail. 
(1) The notice shall clearly state: 
(A) the reasons for the <nl>revocation or the imposition of administrative 
penalties<ol> [cancellation]; 
(B) the effective date of the <nl>revocation<ol> [cancellation]; and 
(C) the right of the holder of the permit [or registration] to request an 
administrative hearing on the question of the <nl> revocation or the imposition 
of administrative penalties<ol> [cancellation
(2) A request for an administrative hearing under this section must be made in 
writing to the director of right of way within 10 days of the receipt of the 
notice of <nl>revocation or the imposition of administrative penalties 
cancellation]. <ol>
(3) If timely requested, an administrative hearing shall be conducted in 
accordance with sec.sec.1.21-<nl>1.61<ol> [1.63] of this title (relating to 
Contested Case Procedure), and shall serve to abate the <nl>revocation or 
imposition of administrative penalties<ol> [cancellation] unless and until that 
<nl>action<ol> [cancellation ] is affirmed by order of the commission. 
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 27, 1998.
TRD-9802970
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: April 12, 1998
For further information, please call: (512) 463-8630