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 4. AGRICULTURE
PART I. Texas Department of Agriculture
CHAPTER 3.Boll Weevil Eradication Program
SUBCHAPTER E.Creation of Eradication Zones
4 TAC sec.3.114
The Texas Department of Agriculture (the department) proposes new sec.3.114, 
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 not currently located in a statutory zone created under 
Chapter 74, Subchapter D, sec.74.1021. New sec.3.114 proposes, upon the request 
of the Blacklands Area Boll Weevil Advisory Committee, the designation of the 
Southern Blacklands Boll Weevil Eradication Zone, in accordance with the Texas 
Agriculture Code, sec.74.1042. This proposed new section replaces the proposal 
published in the Texas Register on April 10, 1998 (23 TexReg 3642). That 
previous proposal for establishing a Southeastern Blacklands Boll Weevil 
Eradication Zone as new sec.3.114 has been withdrawn because based upon comment 
received on that proposal during the comment period from various individual and 
organizations including the Commissioner's Blacklands Area Interim Advisory 
Committee, the South Texas Cotton and Grain Association and the Texas Boll 
Weevil Eradication Foundation, the department has determined that the boundaries 
originally proposed should be modified to include a larger geographic area and 
the name of the zone changed to more accurately reflect the area proposed to be 
covered.
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 designated 
as an eradication program and an assessment is approved by the zone's cotton 
growers, those cotton growers 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 an eradication program and assessment, and the amount of the 
assessment established for the zone once a program is 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. 
The codes affected by the proposal are the Texas Agriculture Code, Chapter 74. 

sec.3.114.Southern Blacklands Boll Weevil Eradication Zone.
The Southern Blacklands Boll Weevil Eradication Zone shall consist of the 
following area: all of Anderson, Brazos, Burleson, Freestone, Grimes, Harris, 
Houston, Leon, Liberty, Madison, Robertson, Walker, Camp, Wood, Upshur, Marion, 
Harrison, Gregg, Smith, Cherokee, Rusk, Panola, Shelby, Nacogdoches, San 
Augustine, Sabine, Angelina, Trinity, San Jacinto, Polk, Tyler, Jasper, Newton, 
Hardin, Orange, Jefferson, Chambers, Galveston, Washington, Montgomery, Coryell, 
Mills, Lampasas, San Saba, Llano, Gillespie, Kendall, Blanco, Burnet, Bell, 
Williamson, Travis, Hays, Comal, Guadalupe, Gonzales, Fayette, Caldwell, 
Bastrop, Lee, Milam, and Falls counties; that part of Limestone County south of 
Highway 84 from the McLennan County line east to the Freestone County line; that 
part of Waller County north of Highway 159 from the Austin County line north and 
east to Hempstead, then east on Highway 6/290 to the Harris County line; and 
that part of McLennan County south of Highway 84.
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 May 22, 1998.
TRD-9808467
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-7541

PART III. Office of the Texas State Chemist/Texas Feed and Fertilizer Control 
Service
CHAPTER 65.Commercial Fertilizer Rules
SUBCHAPTER B.Permitting and Registration
4 TAC sec.65.11
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes to amend sec.65.11, concerning Application for Registration to 
take effect September 1, 1998. The amendment is being proposed to ensure 
compliance with sec.76.041(f) of the Texas Pesticide Law.
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the section is in effect, there will be no financial implications for the 
Office, state or local government as a result of enforcing or administering the 
section. 
Dr. Latimer 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 enforcing the 
rule will be to ensure non-registered pesticides are not incorporated into 
fertilizer. 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 proposed changes may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The amendment is proposed under the Texas Agriculture Code, Chapter 63, 
sec.63.004, which provides the Texas Feed and Fertilizer Control Service with 
the authority to adopt rules relating to the distribution of commercial 
fertilizers. 
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter C, sec.63.034, is affected by the proposed amendment.

sec.65.11.Application for Registration.
(a) - (e) (No change.) 
<nl>(f)<ol> <nl> All applications for registration of pesticide/fertilizer 
mixtures must be accompanied by appropriate certification from the Texas 
Department of Agriculture that the pesticide is approved for use. <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 May 22, 1998.
TRD-9808404
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

4 TAC sec.65.13
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes sec.65.13, concerning Waste Products Distributed as 
Fertilizers. This new section is proposed to allow for the safe and appropriate 
use of sewage, sludge and septage either as fertilizers or as components in 
fertilizers. 
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the section is in effect, there will be no financial implications for the 
Office, state or local government as a result of enforcing or administering the 
section. 
Dr. Latimer 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 enforcing the 
new rule will be that sewage, sludge and septage used as fertilizers meet the 
same standards as other commercial fertilizers and can be safely used.
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 other 
than providing information. This information must be developed and provided to 
other state agencies if the material is applied to the soil in other ways.
Comments on the proposed changes may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The new rule is proposed under the Texas Agriculture Code, Chapter 63, 
sec.63.004, which provides the Texas Feed and Fertilizer Control Service with 
the authority to adopt rules relating to the distribution of commercial 
fertilizers. 
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter H, sec.63.142 and sec.63.143 are affected by the proposed 
new rule.

sec.65.13.Waste Products Distributed as Fertilizers.
(a) No person shall sell, offer or expose for sale, or distribute in this state, 
any industrial or municipal product originally designated as a waste by any 
governmental agency -- federal, state or local -- intended for, promoted or 
represented, advertised as or distributed as a fertilizer as defined in the 
Texas Agriculture Code, Chapter 63, sec.63.002 prior to registering the same as 
specified in sec.63.031. 
(b) In addition to other requirements of the Law and the Rules, applications for 
registration of sewage, sludge and septage or mixed fertilizer containing same 
shall be accompanied by the following: 
(1) A detailed description of the facilities, equipment and method of 
manufacture to be used in processing, manufacturing and testing of the product. 
(2) A sampling schedule, a full description of all tests made prior to 
application for registration and the results of such tests which shall include, 
but not necessarily be limited to, the following as appropriate:
(A) Herbicides or pesticides; 
(B) Arsenic, cadmium, lead, mercury and selenium; 
(C) Parasitic larva or ova or pathogenic organisms. 
(3) A schedule for periodic testing which initially shall be conducted on each 
production run no less than once (1) each calendar quarter. 
(A) Less frequent testing may be allowed where data show continued uniformity 
and a consistent margin of compliance. 
(B) More frequent testing shall be required where the data show the process is 
not under control. 
(C) Sequential testing shall again be required when periodic analysis or any 
other information available to the manufacturer indicates that: 
(i) changes are made in the manufacturing process; or 
(ii) new or expanded sources of the raw ingredients are used.
(4) A statement that any product consisting in whole or in part of sewage, 
septage or sludge meets the CFR Part 503 and specifically it meets the 
requirements of 503.15(b)(5), 503.32(a) and one of the vector attraction 
reduction requirements in 503.33(b)(1) - 503.33(b)(8).
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 May 22, 1998.
TRD-9808405
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

SUBCHAPTER C.Labeling
4 TAC sec.65.17
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes sec.65.17, concerning Labeling - General Requirements. The new 
section is being proposed to require all fertilizer distributed in Texas to 
provide information about components of the fertilizer and instructions about 
appropriate use of the fertilizer. 
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the section is in effect, there will be no financial implications for the 
Office, state or local government as a result of enforcing or administering the 
section. 
Dr. Latimer 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 enforcing the 
section will be that the users can exercise their judgements about which 
fertilizers they believe will be most appropriately applied to their crops and 
have access to information which will permit them to apply the fertilizers at 
rates protective of the environment. There are economic cost to persons required 
to comply with the new section. These costs are (1) the printing of new bags to 
conform to the new rule, (2) the retention of required documentation relating to 
the lot of fertilizer should they choose not to provide the information on the 
label, (3) the cost of responding to public inquiries if they choose not to 
provide the information on the label. The economic impact of replacing bags will 
be lessened because the distributors will be permitted to use bags printed 
before September 1, 1998 until September 1, 1999.
Comments on the proposed changes may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The new section is proposed under the Texas Agriculture Code, Chapter 63, 
sec.63.004, which provides the Texas Feed and Fertilizer Control Service with 
the authority to adopt rules relating to the distribution of commercial 
fertilizers.
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter D, sec.63.054 and Subchapter H, sec.63.143 are affected 
by the proposed new section. 

sec.65.17.General Requirements.
(a) Primary Plant Nutrients 
(1) Nitrogen, phosphorus and potassium shall be guaranteed on the label of a 
commercial fertilizer in either of the following forms:
(A) Abbreviated Label or
Figure: 4 TAC sec.65.17(a)(1)(A) 
(B) Expanded Label 
Figure: 4 TAC sec.65.17(a)(1)(B) 
(2) Plant nutrients other than nitrogen, available phosphorus, and potassium, 
when mentioned in any form or manner on the label of a fertilizer product, shall 
be guaranteed. 
(A) Guarantees other than nitrogen, phosphorus, and potassium shall be expressed 
on an elemental basis as a percentage by weight. 
(B) Any guarantees or claims for plant nutrients shall appear in the order 
given, shall immediately follow the guarantees for the nitrogen, available 
phosphorus, and potassium. Absent evidence that an unlisted nutrient fulfills 
the requirement of subsection (e)(3)-(4) of this section, the only guarantees 
are as follows: 
(i) Inorganic: Calcium (Ca), Magnesium (Mg), Sulfur (S), Boron
(B), Chlorine (Cl), Cobalt (Co), Copper (Cu), Iron (Fe), Manganese (Mn), 
Molybdenum (Mo), Sodium (Na), Selenium (Se), Vanadium (V), Zinc (Zn). 
(ii) Organic: Humic acid. 
(b) The label shall 
(1) list all components of the fertilizer alphabetically; or 
(2) bear a statement which says in effect, "Information about the components of 
this lot of fertilizer may be obtained by writing to (name and address of 
manufacturer/guarantor) and giving the lot number which is found (statement 
notes location on package); or 
(3) conform to sec.65.26(2) of this title (relating to Requirements for 
Fertilizers Suitable for Use in Organic Production Programs).
(c) The component of a fertilizer must be denoted by its usual or common name or 
by a name 
(1) as accepted by the United States Department of Agriculture's National 
Organic Program; or 
(2) as defined by a term promulgated by the Association of American Plant Food 
Control Officials; or 
(3) as approved by the Texas Department of Agriculture's Organic Certification 
Program; or 
(4) as approved by the Service. . 
(d) The label shall display 
(1) directions for use which include both an amount to be applied per unit area 
and a frequency of use per year; or 
(2) a statement which says in effect, ""For the agronomic application rates 
suitable for your geographical area or the maximum allowable non-nutrient 
application rates per acre, consult a trained soil specialist or write to (name 
and address of manufacturer/guarantor)." 
(e) The registrant of a fertilizer shall furnish to the Service upon request: 
(1) the proposed label; 
(2) the source of the elements guaranteed; 
(3) proof that any non-traditional fertilizer components or additives guaranteed 
or claimed on the label provide: 
(A) long-term safety to animals, plants, and the environment; and 
(B) availability and efficacy; 
(4) a method acceptable to the Service for determining any component at 50% of 
the level guaranteed on the label; and 
(5) the levels of arsenic, cadmium, cobalt, mercury, molybdenum, nickel, lead 
and selenium in the product. 
(f) Registrants who elect to have their labels conform to subsection (b)(2) 
and/or subsection (d)(2) of this section shall keep the requisite production and 
formulation records by customer, by invoice, by lot/batch numbers for 18 months 
from the production date and make such available to the public on written 
request and to the Service at any time. 
(g) Registrants who elect to have their labels conform to subsection (d)(2) of 
this section shall not distribute any lot of fertilizer when any one of the 
elements listed in Table 1 exceeds the limiting value shown. 
Figure: 4 TAC 65.17(g) 
(h) Any guarantee of the degree of fineness of unacidulated phosphatic materials 
stated on the label of a fertilizer product shall be stated in terms of the 
percentage of the material that will pass the United States standard sieve 
series number 200 (200 mesh, dry sieve method), adopted by reference under 
sec.65.51 of this title (relating to Sampling and Analytical Procedures). 
(i) Any guarantee of the degree of fineness of basic slag stated on the label of 
a fertilizer product shall be stated in terms of the percentage of the material 
that will pass the United States standard sieve series number 100 (100 mesh, dry 
sieve method), adopted by reference under sec.65.51 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 May 22, 1998.
TRD-9808406
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

4 TAC sec.65.21
(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 Office of the 
Texas State Chemist/Texas Feed and Fertilizer Control Service or in the Texas 
Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, 
Austin.)
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes to repeal sec.65.21, concerning Primary Plant Nutrients 
effective September 1, 1998. The repeal is made to incorporate the text into 
sec.65.17 - General Requirements - to accommodate new labeling requirements. 
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the repeal is in effect, there will be no financial implications for the Office, 
state or local government as a result of enforcing or administering the section. 
Dr. Latimer has also determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated is that the user of 
fertilizer will have more complete information. There will be no effect on small 
businesses. There is no anticipated economic cost to persons as a result of 
repealing this section. 
Comments on the proposed changes may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The repeal is proposed under the Texas Agriculture Code, Chapter 63, sec.63.004, 
which provides the Texas Feed and Fertilizer Control Service with the authority 
to adopt rules relating to the distribution of commercial fertilizers. 
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter D, sec.63.054, is affected by the proposed repeal.

sec.65.21. Plant Nutrients.
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 May 22, 1998.
TRD-9808410
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

4 TAC sec.65.24
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes to amend sec.65.24, concerning Warnings or Cautionary 
Statements to include an additional warning statement for acceptable levels of 
trace elements and a list of these elements and to include editorial changes to 
ensure consistency throughout the section. The amendment is necessary to ensure 
that the section is consistent with new sec.65.17. 
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the section is in effect, there will be no financial implications for the 
Office, state or local government as a result of enforcing or administering the 
section. 
Dr. Latimer 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 enforcing the 
rule will be to provide additional information. 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 proposed changes may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The amendment is proposed under the Texas Agriculture Code, Chapter 63, 
sec.63.004, which provides the Texas Feed and Fertilizer Control Service with 
the authority to adopt rules relating to the distribution of commercial 
fertilizers. 
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter D, sec.63.054, and Subchapter H, sec.63.143, are affected 
by the proposed amendment. 

sec.65.24.Warnings or Cautionary Statements Required.
A warning or cautionary statement [of the following form] is required on any 
fertilizer product <nl>which<ol> [containing]:
(1) <nl>contains<ol> 0.10% or more boron in water soluble form. The statement 
shall include: 
(A) the word "Warning" or "Caution" conspicuously displayed;
(B) [a statement of] the crop(s) for which the fertilizer is recommended; and 
(C) [a statement] that the use of the fertilizer on any crop(s) other than those 
recommended may result in serious injury to the crop(s); 
(2) <nl>contains<ol> 0.001% or more of molybdenum. The statement shall include: 
(A) the word "Warning" or "Caution" conspicuously displayed; and 
(B) [a statement] that the application of fertilizers containing molybdenum may 
result in forage crops containing levels of molybdenum which are toxic to 
ruminant animals; 
<nl>(3)<ol> <nl>when applied according to the directions for use adds to the 
land levels of trace elements exceeding the limits set forth in Table 2, 
subparagraph (B) of this paragraph. <ol> 
<nl>(A)<ol> <nl>The statement, conspicuously displayed, shall read "WARNING: 
Application according to the directions for use EXCEEDS the allowable limits of 
certain trace elements which can be applied to one acre of land in a calendar 
year." <ol>
<nl>(B)<ol> <nl>Table 2, Cumulative Element Lading Rate.<ol>
<nl>Figure: 4 TAC sec.65.24(3)(B) <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 May 22, 1998.
TRD-9808407
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

4 TAC sec.65.25
(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 Office of the 
Texas State Chemist/Texas Feed and Fertilizer Control Service or in the Texas 
Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, 
Austin.)
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes to repeal sec.65.25, concerning Degree of Fineness of 
Unacidulated Phosphatic Materials and Basic Slag effective September 1, 1998. 
The repeal is made to incorporate the text into sec.65.17 - General Requirements 
- to accommodate new labeling requirements. 
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the repeal is in effect, there will be no financial implications for the Office, 
state or local government as a result of enforcing or administering the section. 
Dr. Latimer has also determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated is a clarification of the 
rules. There will be no effect on small businesses. There is no anticipated 
economic cost to persons as a result of repealing this section. 
Comments on the proposed repeal may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The repeal is proposed under the Texas Agriculture Code, Chapter 63, sec.63.004, 
which provides the Texas Feed and Fertilizer Control Service with the authority 
to adopt rules relating to the distribution of commercial fertilizers. 
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter D, sec.63.054, is affected by the proposed repeal.

sec.65.25.Degree of Fineness of Unacidulated Phosphatic Materials and Basic 
Slag.
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 May 22, 1998.
TRD-9808411
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

4 TAC sec.65.26
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes to amend sec.65.26, concerning Requirements for Fertilizers 
Suitable for use in Organic Production Programs. The amendment is proposed (1) 
to clarify the section and to delete that portion of sec.65.26(2) which has been 
moved to sec.65.17(c). 
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the rule is in effect, there will be no financial implications for the Office, 
state or local government as a result of enforcing or administering the section. 
Dr. Latimer has also 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 clarification and consistency with other rules. 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 proposed changes may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The amendment is proposed under the Texas Agriculture Code, Chapter 63, 
sec.63.004, which provides the Texas Feed and Fertilizer Control Service with 
the authority to adopt rules relating to the distribution of commercial 
fertilizers. 
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter D, sec.63.054, is affected by the proposed amendment.

sec.65.26.Requirements for Fertilizers Suitable for Use in Organic Production 
Programs.
In addition to conforming to all other aspects of the rules, fertilizers 
claiming or implying suitability for use in an organic food or fiber production 
program shall:
(1) (No change.)
(2) list <nl>each component<ol> in order of predominance by weight [each 
ingredient by its usual or common name or by a name accepted by the United 
States Department of Agriculture's National Organic Program or as defined by a 
term or definition promulgated by the Association of American Plant Food Control 
Officials or by the Texas Department of Agriculture's Organic Certification 
Program]; 
(3) not contain any ingredient, <nl>raw material or filler<ol> prohibited by the 
organizations listed in <nl>sec.65.17(c) of this title (relating to General 
Requirements)<ol> [paragraph (2) of this section] for use in these fertilizers. 
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 May 22, 1998.
TRD-9808408
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

4 TAC sec.65.28
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes to amend sec.65.28, concerning Trademarks, Trade Names, Common 
Names, Emphasis on a Particular Component. The amendment being proposed is only 
editorial in nature. sec.65.28(3) has the word "and" and it is being removed 
from the text. 
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the section is in effect, there will be no financial implications for the 
Office, state or local government as a result of enforcing or administering the 
section. 
Dr. Latimer has also that 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 proposed changes may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The amendment is proposed under the Texas Agriculture Code, Chapter 63, 
sec.63.004, which provides the Texas Feed and Fertilizer Control Service with 
the authority to adopt rules relating to the distribution of commercial 
fertilizers. 
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter D, sec.63.054, is affected by the proposed amendment.

sec.65.28.Trademarks, Trade Names, Common Names, Emphasis on a Particular 
Component.
The trademark, trade name, or common name of a component and/or emphasis on one 
or more components or ingredients may form part of the label of a commercial 
fertilizer provided that: 
(1)-(2) (No change.) 
(3) the common name and percentage of the component is given, and the percentage 
is determinable by accepted laboratory methods; [and] 
(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 May 22, 1998.
TRD-9808409
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

Appeals and Rehearings
4 TAC sec.65.85
(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 Office of the 
Texas State Chemist/Texas Feed and Fertilizer Control Service or in the Texas 
Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, 
Austin.)
The Office of the Texas State Chemist, Texas Feed and Fertilizer Control 
Service, proposes to repeal sec.65.85, concerning Notice of Opportunity for 
Appeals and Rehearings effective September 1, 1998. The repeal is proposed 
because this section simply recapitulates sec.63.128 of the Fertilizer Law. 
Dr. George W. Latimer, Jr. has determined that for the first five-year period 
the repeal is in effect, there will be no financial implications for the Office, 
state or local government as a result of enforcing or administering the section. 
Dr. Latimer has also determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated is an elimination of 
redundancies. There will be no effect on small businesses. There is no 
anticipated economic cost to persons as a result of repealing this section. 
Comments on the proposed changes may be submitted to Dr. George W. Latimer, Jr., 
by mail at Office of the Texas State Chemist, P.O. Box 3160, College Station, TX 
77841-3160 or FAX (409) 845-1389. 
The repeal is proposed under the Texas Agriculture Code, Chapter 63, sec.63.004, 
which provides the Texas Feed and Fertilizer Control Service with the authority 
to adopt rules relating to the distribution of commercial fertilizers. 
The Texas Agricultural Code, Texas Commercial Fertilizer Control Act, 4 TAC 
Chapter 63, Subchapter G, sec.63.128, is affected by the proposed repeal.

sec.65.85.Notice of Opportunity for Appeals and Rehearings.
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 May 22, 1998.
TRD-9808412
Dr. George W. Latimer, Jr.
Assistant to the Associate Vice Chancellor of Agriculture
Office of the Texas State Chemist/Texas Feed and Fertilizer Control Service
Proposed date of adoption: September 1, 1998
For further information, please call: (409) 845-1121

TITLE 13. CULTURAL RESOURCES
PART I. Texas State Library and Archives Commission
CHAPTER 1.Library Development
Standards for Accreditation of a Major Resource System of Libraries in the Texas 
Library System
13 TAC sec.1.68
(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 State 
Library and Archives Commission or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Library and Archives Commission proposes to repeal sec.1.68. The 
repealed section removes an outdated policy for library materials and equipment 
purchased with grant funds. The repeal brings commission policy into compliance 
with statutory changes that require it to conform to the Uniform Grant 
Management Standards, 1 TAC 5.141 - 5.167. The new policy for library materials 
and equipment purchased with grant funds is found in the Uniform Grant 
Management Standards (UGMS) which is being proposed for adoption by the 
Commission in sec.2.118. The policy in UGMS has two distinctions from the policy 
being repealed in sec.1.68. 
1) UGMS distinguishes between equipment and supplies differently than sec.1.68. 
Typically equipment is defined as an article of nonexpendable, tangible personal 
property that (a) has an estimated useful life of more than a specific time 
period and (b) has an acquisition cost above the capitalization level. Tangible 
personal property not meeting both of these criteria are considered supplies. 
Both sec.1.68 and UGMS set the estimated useful life as being more than one 
year. However sec.1.68 sets the capitalization level as $300 while UGMS sets the 
capitalization level as the lesser of $1,000 or the level established by the 
governmental unit for financial statement purposes. Therefore, tangible personal 
property with an estimated useful life of more than one year and with an 
acquisition cost of less than $1,000 will no longer be defined as equipment, but 
as supplies. 
2) UGMS is also different from sec.1.68 regarding which entity has title to 
equipment purchased with grant funds. Section 1.68 gave title to the commission 
while UGMS gives title to the grant recipient. 
Although grant recipients will have title to property, UGMS requires recipients 
to follow certain regulations about safeguarding and reporting on the equipment. 
Title will be held by the entity with which the commission entered into a grant 
agreement. 
Both of these distinctions between UGMS and sec.1.68 are effective 
retroactively. Thus tangible personal property that has been categorized as 
equipment, but was acquired for less than $1,000 will be categorized as supplies 
and will no longer have to be inventoried. The commission will no longer hold 
title to such property or to property that continues to be categorized as 
equipment.
Edward Seidenberg, Director of Administration Division, has determined that for 
each year of the first five years after the section is repealed, there will be 
no fiscal implications for state and local government except that the time to 
maintain and report an equipment inventory will be reduced. There will be no 
fiscal implications for small businesses or individuals as a result of enforcing 
or administering the section. 
Edward Seidenberg also has determined that for each of the first five years 
after the section is repealed the public benefits anticipated as a result of 
removing the outdated policy from the administrative code is that the public 
will more easily understand and implement current commission policy. 
Comments may be submitted to Linda Maska, Manager of Accounting and Grants, 
Texas State Library and Archives Commission, P.O. Box 12927, Austin, Texas 
78711-2927. 
The repeal is proposed under the Government Code, sec.441.136. The repeal 
affects the Government Code, 783. 

sec.1.68.Nonexpendable Personal Property.
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 May 22, 1998.
TRD-9808420
Raymond Hitt
Assistant State Librarian
Texas State Library and Archives Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-5440

TITLE 16. ECONOMIC REGULATION
PART I. Railroad Commission of Texas
CHAPTER 3. Oil and Gas Division
16 TAC sec.3.9, sec.3.46
The Railroad Commission of Texas (commission) proposes to amend sec.3.9, 
relating to disposal wells, and sec.3.46, relating to fluid injection into 
productive reservoirs, to expand and clarify the notice requirements for 
disposal and injection well permit applications. The commission also proposes to 
amend mechanical integrity testing requirements in both sec.sec.3.9 and 3.46 by 
adding specific requirements for pressure tests. 
The commission proposes to amend both sec.sec.3.9(a)(3) and 3.46(b)(1) to 
require submission of the statutorily prescribed fee for a disposal or injection 
well with the application. 
The commission proposes to add the following definition for "commercial disposal 
well" in sec.sec.3.9(a)(4) and 3.46(b)(2): "a well whose owner or operator 
receives compensation from others for the disposal of oil field fluids and oil 
and gas wastes that are wholly or partially trucked or hauled to the well, and 
the primary business purpose for the well is to provide these services for 
compensation." 
The commission also proposes to add a requirement in both sec.sec.3.9(a)(4) and 
3.46(b)(2) that an applicant for a commercial disposal well specifically 
indicate on the application and in the published notice of application that it 
is for a commercial disposal well. 
The commission proposes to amend notification requirements in both sec.sec.3.9 
and 3.46 to clarify that affected persons required to receive notice of a 
disposal or injection well application include those listed in the rule. The 
commission also proposes to add language to clarify that surface owner for the 
purpose of notification means surface owner "of record." 
The commission also proposes to change notice to adjacent offset operators to 
notice to commission-designated operators of wells located within one-half mile 
of the proposed disposal or injection well. 
The commission also proposes to define "of record" as "recorded in the real 
property or probate records of the county in which the property is located." The 
commission proposes to add sec.sec.3.9(a)(5)(B) and 3.46(c)(2) to require that 
an applicant for a commercial disposal well permit give notice to adjoining 
surface tract owners. 
The commission also proposes to add sec.sec.3.9(a)(5)(C) and 3.46(c)(3), 
requiring notice to any additional class of persons that the commission or
its delegate deems appropriate in connection with a particular application.
The commission proposes to amend the definition of "affected person" to exclude 
competitors. The amendment clarifies commission policy that "affected person" 
does not include competitors not otherwise affected by an application. The 
commission proposes the addition of sec.3.9(a)(6)(A)(vi) and sec.3.46(d)(1)(F) 
to add "waste of oil, gas, or geothermal resources is occurring or is likely to 
occur as a result of the permitted operations" as a basis for modifying, 
suspending, or terminating a permit issued under sec.3.9 or sec.3.46. The 
commission proposes to delete the reference to January 1, 1983, as the 
compliance deadline for pressure valve requirements in sec.3.9(a)(8)(B) 
[renumbered as sec.3.9(a)(9)(B)] and sec.3.46(g)(2). The provision is no longer 
necessary. 
The commission proposes to amend current mechanical integrity test requirements 
by striking sec.3.9(a)(11)(A) and (B) and adding sec.3.9(a)(12)(A)-(D); by 
striking sec.3.46(j)(1) and (2) and adding sec.3.46(j)(1)-(4); and by 
renumbering the remaining provisions in sec.sec.3.9(a)(11) and 3.46(j). The 
pressure test requirements in proposed sec.sec.3.9(a)(12) and 3.46(j) are 
currently utilized by the commission in the administration of its pressure test 
program for disposal and injection wells. 
The commission proposes to add sec.sec.3.9(a)(12)(A) and 3.46(j)(1). These 
provisions provide that the purpose of mechanical integrity testing is to 
determine whether any leak in the well tubing, packer, or casing exists, by 
either conducting pressure tests or by using alternative testing methods 
authorized by the commission. 
The commission proposes the addition of sec.sec.3.9(a)(12)(B) and 3.46(j)(2). 
The provisions require that the mechanical integrity of each disposal or 
injection well be demonstrated in accordance with sec.3.9(a)(12)(D) and (E) or 
sec.3.46(j)(4) and (5) prior to initial use. Additionally, the provisions 
require that mechanical integrity be tested periodically thereafter in 
accordance with proposed sec.3.9(a)(12)(C) and sec.3.46(j)(3). 
The commission proposes to add sec.3.9(a)(12)(C)(i) and sec.3.46(j)(3)(A), which 
incorporate requirements in sec.3.9(a)(11) and sec.3.46(j)(2) that each disposal 
or injection well be tested once every five years. 
The commission also proposes the addition of sec.sec.3.9(a)(12)(C)(ii)and 
3.46(j)(3)(B)to clarify that mechanical integrity testing is required after 
every workover of a disposal or injection well. 
The commission proposes the addition of sec.3.9(a)(12)(C)(iii) and 
sec.3.46(j)(3)(C) to clarify that the five-year testing schedule is not 
applicable to a disposal or injection well that is completed without surface 
casing set and cemented through the entire interval of protected usable-quality 
ground water. Wells completed without surface casing set and cemented through 
the entire interval of protected usable-quality ground water must be tested at a 
greater frequency as prescribed in the disposal or injection well permit. 
The commission proposes to add sec.3.9(a)(12)(C)(iv) and sec.3.46(j)(3)(D) which 
incorporate sec.3.9(a)(12)(B) and sec.3.46(J)(2), authorizing the commission or 
its delegate to prescribe a schedule for testing and to mail notification of the 
schedule to operators. The schedule prescribed by the commission is not 
applicable to a disposal or injection well for which a disposal or injection 
permit has been issued when the well covered by the permit has not been drilled 
or converted to disposal or injection. 
The commission proposes to incorporate the requirements of sec.sec.3.9(a)(11)(A) 
and 3.46(j)(1) in sec.sec.3.9(a)(12)(D)(i) and 3.46(j)(4)(A). The provisions 
require that test pressure for wells equipped to dispose or inject through 
tubing and packer must equal the maximum authorized injection pressure or 500 
psig, whichever is less, but must be at least 200 psig, and the test pressure 
for wells that are permitted for disposal or injection through casing must equal 
the maximum permitted injection pressure or 200 psig, whichever is greater. The 
commission proposes to add sec.sec.3.9(a)(12)(D)(ii) and 3.46(j)(4)(B) to 
require that test pressure stabilize within 10 percent of the required test 
pressure prior to commencement of the test. 
The commission proposes to add sec.sec.3.9(a)(12)(D)(iii) and 3.46(j)(4)(C) to 
require maintenance of a pressure differential of at least 200 psig between the 
test pressure on the tubing- casing annulus and the tubing pressure. 
The commission proposes to add sec.sec.3.9(a)(12)(D)(iv) and 3.46(j)(4)(D) to 
require that a pressure test be conducted for a duration of 30 minutes when the 
test medium is liquid, and 60 minutes when the test medium is air or gas. 
The commission proposes to add sec.sec.3.9(a)(12)(D)(v) and 3.46(j)(4)(E) to 
require, except in cases where the test is witnessed by the commission, that a 
pressure recorder be used to monitor and record the tubing-casing annulus 
pressure. The provisions also provide that the recorder clock can not exceed 24 
hours and that the recorder scale must be set so that the test pressure is 30 to 
70 percent of full scale, unless otherwise authorized by the commission or its 
delegate. 
The commission proposes to add sec.sec.3.9(a)(12)(D)(vi) and 3.46(j)(4)(F) to 
require that the tubing-casing annulus fluid used in a pressure test be liquid 
for wells that inject liquid unless some other fluid is specifically authorized 
by the commission or its delegate for good cause. The provisions also require 
that the tubing-casing annulus fluid contain no additives that affect the 
sensitivity or otherwise reduce the effectiveness of a test. 
The commission proposes to add sec.sec.3.9(a)(12)(D)(vii) and 3.46(j)(4)(G).
The provisions provide that the commission or its delegate will consider, in 
evaluating the results of a test, the level of pollution risk that loss of well 
integrity would cause. Factors that will be taken into account in assessing 
pollution risk include injection pressure, frequency of testing and monitoring, 
and whether there is sufficient casing to cover all zones containing usable-
quality water. The provisions also authorize the commission to reject a pressure 
test after consideration of the following factors: the degree of pressure change 
during the test, if any; the level of risk to usable-quality water if mechanical 
integrity of the well is lost; and whether circumstances surrounding the 
administration of the test make the test inconclusive. 
The commission proposes to amend alternative testing provisions in 
sec.sec.3.9(a)(11)(C)and 3.46(j)(3), renumbered as sec.sec.3.9(a)(12)(E)(ii) and 
3.46(j)(5)(B), to reflect current commission practice of requiring alternative 
tests or surveys as a permit condition. 
The commission proposes to amend sec.3.9(a) by deleting paragraph (14) which 
provides that the section takes effect on April 1, 1982. The provision is no 
longer necessary. 
The commission proposes to amend sec.3.46 by deleting subsection (m), which 
provides that the section takes effect on April 1, 1982. The provision is no 
longer necessary. 
The commission proposes to renumber sec.3.46(o) as sec.3.46(k). 
The commission proposes to amend sec.3.46(o)(2), renumbered as sec.3.46(k)(2), 
to clarify that the surface owner, for the purposes of notification, means the 
surface owner "of record." Amendments to the provision also require notice to 
commission designated operators of wells located within one-half mile of the 
permit area. 
The commission proposes to renumber sec.3.46(n) as sec.3.46(l) and 
sec.sec.3.46(k) and (l) as sec.sec.3.46(m) and (n). 
Robin Robinson, staff attorney, Office of General Counsel, has determined that 
for each year of the first five years the amendments are in effect, there will 
be minimal or no additional costs to small businesses, individuals, and other 
affected operators, as a result of complying with the amended notification 
provisions. Under current notification provisions, notice must be given to all 
adjacent operators. The amendments revise this requirement and provide that 
notice will be given to operators of wells within one-half mile of the proposed 
disposal or injection well. In some cases this change will mean a decrease in 
the number of operators required to receive notice. For instance, on large units 
and in areas where production wells are widely scattered, there may not be any 
well within one-half mile of the proposed disposal or injection well even though 
there is production on mineral leases that offset the disposal or injection well 
tract. Currently, those operators offsetting productive leases would be required 
to receive notice; under the new proposal, no notice to operators would be 
specifically required under the rule. In other cases, there may be an increase 
in costs. For instance, where leases are small and there is a high well density, 
an applicant may have to notify operators of wells that are not located on 
offsetting leases but are nevertheless within one-half mile of the proposed 
disposal or injection well. But any cost increase to notify these operators 
should be minimal because maps showing offset wells within one- half mile radius 
are readily available from the commission at minimal cost, and the costs of 
printing and mailing additional copies of notice information are also minimal. 
Ms. Robinson has also determined that for each year of the first five years the 
amendments to sec.3.9 and sec.3.46 are in effect, there will be minimal 
additional costs for commercial facilities to comply with the amended 
notification provisions. The amendments require additional notice to owners of 
surface tracts that adjoin the proposed disposal or injection tract if the 
application is for a commercial disposal well. Costs associated with the 
additional notice will include identifying adjacent surface owners, and printing 
and mailing the copies of the notice, but these costs should be minimal. In most 
cases, the adjacent surface owners are readily identifiable through county tax 
records. An estimate of the time to search the records to identify these owners 
is approximately one hour per application. An estimate of the cost of printing 
and mailing the notice to adjoining surface owners is approximately $5.00 per 
application. 
Ms. Robinson has determined that for each year of the first five years the 
amendments are in effect, there will be no additional costs associated with the 
added mechanical integrity testing requirements. The mechanical integrity 
testing requirements reflect current commission practices. If anything, costs of 
mechanical integrity tests may decrease because an increased awareness of test 
standards will result in fewer tests being rejected for failure to follow 
accepted test methods. 
Ms. Robinson has also determined that the cost of compliance with the amendments 
will be comparable for small and large operators. As costs of these regulations 
are minimal, the commission does not anticipate that small operators will suffer 
disproportional economic impact as compared to larger operators. 
Ms. Robinson has also determined that the public benefit from the adoption of 
the proposed amendments will be increased assurance that potentially affected 
persons receive notification of a proposed disposal or injection well, and 
better dissemination of information regarding acceptable mechanical integrity 
test procedures. 
The commission has not requested a local employment impact statement pursuant to 
Tex. Gov't Code, sec.2001.022(h). 
Comments on the proposed amendments should be submitted to Richard Ginn, 
Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-12967. 
Comments will be accepted until 5:00 p.m. on the thirtieth day after publication 
in the Texas Register. 
The amendments to sec.3.9 and sec.3.46 are proposed under Texas Water Code, 
Chapter 27, which authorizes the commission to adopt and enforce rules relating 
to oil and gas waste disposal wells and Texas Natural Resources Code, 
sec.81.052, which authorizes the commission to adopt all necessary rules for 
governing persons and their operations under the jurisdiction of the commission 
under sec.81.051; sec.85.042(b), which authorizes the commission to adopt and 
enforce rules for the prevention of operations in the field dangerous to life or 
property; sec.85.201, which authorizes the commission to make and enforce rules 
for the conservation of oil and gas and prevention of waste of oil and gas; 
sec.85.202, which authorizes the commission to adopt rules to prevent waste of 
oil and gas in producing operations and to require wells to be operated in a 
manner that will prevent injury to adjoining property; and sec.91.101, which 
authorizes the commission to adopt rules for the prevention of pollution of 
surface or subsurface water associated with the disposal of oil and gas waste. 
Texas Water Code, Chapter 27 and Texas Natural Resources Code, sec.sec.81.052, 
85.042(b), 85.201, 85.202, and 91.101 are affected by these amendments. 

sec.3.9. Disposal Wells. 
Any person who disposes of saltwater or other oil and gas waste by injection 
into a porous formation not productive of oil, gas, or geothermal resources 
shall be responsible for complying with this section, Texas Water Code, Chapter 
27, and Title 3 of the Natural Resources Code. 
(1)-(2) (No change.) 
(3) Application. The application to dispose of saltwater or other oil and gas 
waste by injection into a porous formation not productive of oil, gas, or 
geothermal resources shall be filed with the commission in Austin 
<nl>accompanied by the prescribed fee<ol>. On the same date, one copy shall be 
filed with the appropriate district office. 
<nl>(4)<ol> Commercial disposal well. An applicant for a permit to dispose of 
oil and gas waste in a commercial disposal well shall clearly indicate on the 
application and in the published notice of application that the application is 
for a commercial disposal well permit. For the purposes of this rule, 
"commercial disposal well" means a well whose owner or operator receives 
compensation from others for the disposal of oil field fluids or oil and gas 
wastes that are wholly or partially trucked or hauled to the well, and the 
primary business purpose for the well is to provide these services for 
compensation. 
<nl>(5)<ol> [(4)] Notice and opportunity for hearing. 
(A) The applicant shall give notice by mailing or delivering a copy of the 
application to <nl>affected persons who include<ol> the owner <nl> of record<ol> 
of the <nl>surface<ol> tract on which the well is located<nl>;<ol>[, to] each 
<nl>commission- designated<ol> [adjoining offset] operator <nl>of any well 
located within one-half mile of the proposed disposal well;<ol>[, to] the county 
clerk of the county in which the well is located<nl>;<ol>[,] and [to] the city 
clerk or other appropriate city official of any city where the well is located 
within the municipal boundaries of the city, on or before the date the 
application is mailed to or filed with the commission. <nl>For the purposes of 
this section, the term "of record" means recorded in the real property or 
probate records of the county in which the property is located.<ol>
<nl>(B)<ol> In addition to the requirements of subsection (a)(5)(A) of this 
section, a commercial disposal well permit applicant shall give notice to owners 
of record of each surface tract that adjoins the proposed disposal tract by 
mailing or delivering a copy of the application to each such surface owner. 
<nl>(C)<ol> If, in connection with a particular application, the commission or 
its delegate determines that another class of persons should receive notice of 
the application, the commission or its delegate may require the applicant to 
mail or deliver a copy of the application to members of that class. Such classes 
of persons could include adjacent surface owners or underground water districts. 
<nl>(D)<ol> [(B)] In order to give notice to other local governments, 
interested, or affected persons, notice of the application shall be published 
once by the applicant in a newspaper of general circulation for the county where 
the well will be located in a form approved by the commission or its delegate. 
The applicant shall file with the commission in Austin proof of publication 
prior to the hearing or administrative approval. 
<nl>(E)<ol> [(C)] Protested applications: 
(i) If a protest from an affected person or local government is made to the 
commission within 15 days of receipt of the application or of publication, 
whichever is later, or if the commission or its delegate determines that a 
hearing is in the public interest, then a hearing will be held on the 
application after the commission provides notice of hearing to all affected 
persons, local governments, or other persons, who express an interest, in 
writing, in the application. 
(ii) For purposes of this section, "affected person" means a person who has 
suffered or will suffer actual injury or economic damage other than as a member 
of the general public <nl>or as a competitor<ol>, and includes surface owners of 
property on which the well is located and <nl> commission-designated operators 
of wells located within one-half mile of the proposed disposal well<ol> 
[adjoining offset operators]. 
<nl>(F)<ol> [(D)] If no protest from an affected person is received by the 
commission, the commission's delegate may administratively approve the 
application. If the commission's delegate denies administrative approval, the 
applicant shall have a right to a hearing upon request. After hearing, the 
examiner shall recommend a final action by the commission.
<nl>(6)<ol> [(5)] Subsequent commission action. 
(A) A permit for saltwater or other oil and gas waste disposal may be modified, 
suspended, or terminated by the commission for just cause after notice and 
opportunity for hearing, if: 
(i) a material change of conditions occurs in the operation or completion of the 
disposal well, or there are material changes in the information originally 
furnished; 
(ii) freshwater is likely to be polluted as a result of continued operation of 
the well; 
(iii) there are substantial violations of the terms and provisions of the permit 
or of commission rules; 
(iv) the applicant has misrepresented any material facts during the permit 
issuance process; [or] 
(v) injected fluids are escaping from the permitted disposal zone <nl>; or<ol> 
[.] 
<nl>(vi)<ol> waste of oil, gas, or geothermal resources is occurring or is 
likely to occur as a result of the permitted operations. 
(B) A disposal well permit may be transferred from one operator to another 
operator provided that the commission's delegate does not notify the present 
permit holder of an objection to the transfer prior to the date the lease is 
transferred on Commission records. 
<nl>(7)<ol> [(6)] Area of Review.
(A) Except as otherwise provided in this paragraph, the applicant shall review 
the date of public record for wells that penetrate the proposed disposal zone 
within a 1/4 mile radius of the proposed disposal well to determine if all 
abandoned wells have been plugged in a manner that will prevent the movement of 
fluids from the disposal zone into freshwater strata. The applicant shall 
identify in the application any wells which appear from such review of public 
records to be unplugged or improperly plugged and any other unplugged or 
improperly plugged wells of which the applicant has actual knowledge. 
(B) The commission or its delegate may grant a variance from the area-of-review 
requirements of subparagraph (A) of this paragraph upon proof that the variance 
will not result in a material increase in the risk of fluid movement into 
freshwater strata or to the surface. Such a variance may be granted for an area 
defined both vertically and laterally (such as a field) or for an individual 
well. An application for an areal variance need not be filed in conjunction with 
an individual permit application or application for permit amendment. Factors 
that may be considered by the commission or its delegate in granting a variance 
include: 
(i) the area affected by pressure increases resulting from injection operations; 
(ii) the presence of local geological conditions that preclude movement of fluid 
that could endanger freshwater strata or the surface; or
(iii) other compelling evidence that the variance will not result in a material 
increase in the risk of fluid movement into freshwater strata or to the surface. 
(C) Persons applying for a variance from the area-of-review requirements of 
subparagraph (A) of this paragraph on the basis of factors set out in 
subparagraph (B)(ii) or (iii) of this paragraph for an individual well shall 
provide notice of the application to those persons given notice under the 
provisions of paragraph <nl>(5)(A)<ol> [(4)(A)] of this subsection. The 
provisions of paragraph <nl>(5)(D) and (E)<ol> [(4)(C) and (D)] shall apply in 
the case of an application for a variance from the area-of-review requirements 
for an individual well. 
(D) Notice of an application for an areal variance from the area- of-review 
requirements under subparagraph (A) of this paragraph shall be given on or 
before the date the application is filed with the commission:
(i) by publication once in a newspaper having general circulation in each 
county, or portion thereof, where the variance would apply. Such notice shall be 
in a form approved by the commission or its delegate prior to publication and 
must be at least three inches by five inches in size. The notice shall state 
that protests to the application may be filed with the commission during the 15-
day period following the date of publication. The notice shall appear in a 
section of the newspaper containing state or local news items; 
(ii) by mailing or delivering a copy of the application, along with a statement 
that any protest to the application should be filed with the commission within 
15 days of the date of the application is filed with the commission, to the 
following: 
(I) the manager of each underground water conservation district(s) in which the 
variance would apply, if any; 
(II) the city clerk or other appropriate official of each incorporated city in 
which the variance would apply, if any; 
(III) the county clerk of each county in which the variance would apply; and 
(IV) any other person or persons that the commission or its delegate determine 
should receive notice of the application. 
(E) If a protest to an application for an areal variance is made to the 
commission by an affected person, local government, underground water 
conservation district, or other state agency within 15 days of receipt of the 
application or of publication, whichever is later, or if the commission's 
delegate determines that a hearing on the application is in the public interest, 
then a hearing will be held on the application after the commission provides 
notice of the hearing to all local governments, underground water conservation 
districts, state agencies, or other persons, who express an interest, in 
writing, in the application. If no protest from an affected person is received 
by the commission, the commission's delegate may administratively approve the 
application. If the application is denied administratively, the person(s) filing 
the application shall have a right to hearing upon request. After hearing, the 
examiner shall recommend a final action by the commission. 
(F) An areal variance granted under the provisions of this paragraph may be 
modified, terminated, or suspended by the commission after notice and 
opportunity for hearing is provided to each person shown on commission records 
to operate an oil or gas lease in the area in which the proposed modification, 
termination, or suspension would apply. If a hearing on a proposal to modify, 
terminate, or suspend an areal variance is held, any applications filed 
subsequent to the date notice of hearing is given must include the area-of-
review information required under subparagraph (A) of this paragraph pending 
issuance of a final order. 
<nl>(8)<ol> [(7)] Casing. Disposal wells shall be cased and the casing cemented 
in compliance with sec.3.13 of this title (relating to Casing, Cementing, 
Drilling, and Completion Requirements) in such a manner that the injected fluids 
will not endanger oil, gas, geothermal resources, or freshwater resources. 
<nl>(9)<ol> [(8)] Special equipment. 
(A) Tubing and packer. Wells drilled or converted for disposal shall be equipped 
with tubing set on a mechanical packer. Packers shall be set no higher than 100 
feet above the top of the permitted interval. For purposes of this section, the 
term "tubing" refers to a string of pipe through which injection may occur and 
which is neither wholly nor partially cemented in place. A string of pipe that 
is wholly or partially cemented in place is considered casing for purposes of 
this section. 
(B) Pressure valve. The wellhead shall be equipped with a pressure observation 
valve on the tubing and for each annulus of the well. [Operators of existing 
disposal wells shall comply with this requirement by no later than January 1, 
1983.] 
(C) <nl>Exceptions.<ol> The director may grant an exception to any provision of 
this paragraph upon proof of good cause. If the director denies an exception, 
the operator shall have a right to a hearing upon request. After hearing, the 
examiner shall recommend a final action by the commission.
<nl>(10)<ol> [(9)] Well record. Within 30 days after the completion or 
conversion of a disposal well, the operator shall file in duplicate in the 
district office a complete record of the well on the appropriate form which 
shows the current completion. 
<nl>(11)<ol> [(10)] Monitoring and reporting.
(A) The operator shall monitor the injection pressure and injection rate of each 
disposal well on at least a monthly basis. 
(B) The results of the monitoring shall be reported annually to the commission 
on the prescribed from. 
(C) All monitoring records shall be retained by the operator for at least five 
years. 
(D) The operator shall report to the appropriate District Office within 24 hours 
any significant pressure changes or other monitoring data indicating the 
presence of leaks in the well. 
<nl>(12)<ol> [(11)] Testing. 
<nl>(A)<ol> Purpose. The mechanical integrity of a disposal well shall be 
evaluated by conducting pressure tests to determine whether the well tubing, 
packer, or casing have sufficient mechanical integrity to meet the performance 
standards of this rule, or by alternative testing methods under subparagraph (E) 
of this paragraph. 
<nl>(B)<ol> Applicability. Mechanical integrity of each disposal well shall be 
demonstrated in accordance with provisions of subparagraph (D) and subparagraph 
(E) of this paragraph prior to initial use. In addition, mechanical integrity 
shall be tested periodically thereafter as described in subparagraph (C) of this 
paragraph. 
<nl>(C)<ol> Frequency. 
<nl>(i)<ol> Each disposal well completed with surface casing set and cemented 
through the entire interval of protected usable-quality water shall be tested 
for mechanical integrity at least once every five years. 
<nl>(ii)<ol> In addition to testing required under clause (i), each disposal 
well shall be tested for mechanical integrity after every workover of the well. 
<nl>(iii)<ol> A disposal well that is completed without surface casing set and 
cemented through the entire interval of protected usable-quality ground water 
shall be tested at the frequency prescribed in the disposal well permit. 
<nl>(iv)<ol> The commission or its delegate may prescribe a schedule and mail 
notification to operators to allow for orderly and timely compliance with the 
requirements in clauses (i) and (ii) of this subparagraph. Such testing schedule 
shall not apply to a disposal well for which a disposal well permit has been 
issued but the well has not been drilled or converted to disposal. 
<nl>(D)<ol> Pressure tests. 
<nl>(i)<ol> Test pressure. 
<nl>(I)<ol> The test pressure for wells equipped to dispose through tubing and 
packer shall equal the maximum authorized injection pressure or 500 psig, 
whichever is less, but shall be at least 200 psig. 
<nl>(II)<ol> The test pressure for wells that are permitted for disposal through 
casing shall equal the maximum permitted injection pressure or 200 psig, 
whichever is greater. 
<nl>(ii)<ol> Pressure stabilization. The test pressure shall stabilize within 10 
percent of the test pressure required in clause (i) of this subparagraph prior 
to commencement of the test. 
<nl>(iii)<ol> Pressure differential. A pressure differential of at least 200 
psig shall be maintained between the test pressure on the tubing-casing annulus 
and the tubing pressure. 
<nl>(iv)<ol> Test duration. A pressure test shall be conducted for a duration of 
30 minutes when the test medium is liquid or for 60 minutes when the test medium 
is air or gas. 
<nl>(v)<ol> Pressure recorder. Except for tests witnessed by a commission 
representative or wells permitted for disposal through casing, a pressure 
recorder shall be used to monitor and record the tubing-casing annulus pressure 
during the test. The recorder clock shall not exceed 24 hours. The recorder 
scale shall be set so that the test pressure is 30 to 70 percent of full scale, 
unless otherwise authorized by the commission or its delegate.
<nl>(vi)<ol> Test fluid. 
<nl>(I)<ol> The tubing-casing annulus fluid used in a pressure test shall be 
liquid for wells that inject liquid unless the commission or its delegate 
authorizes the use of a different test fluid for good cause.
<nl>(II)<ol> The tubing-casing annulus fluid used in a pressure test shall 
contain no additives that may affect the sensitivity or otherwise reduce the 
effectiveness of the test. 
<nl>(vii)<ol> Pressure test results. The commission or its delegate will 
consider, in evaluating the results of a test, the level of pollution risk that 
loss of well integrity would cause. Factors that may be taken into account in 
assessing pollution risk include injection pressure, frequency of testing and 
monitoring, and whether there is sufficient surface casing to cover all zones 
containing usable-quality water. A pressure test may be rejected by the 
commission or its delegate after consideration of the following factors: 
<nl>(I)<ol> the degree of pressure change during the test, if any; 
<nl>(II)<ol> the level of risk to usable-quality water if mechanical integrity 
of the well is lost; and 
<nl>(III)<ol> whether circumstances surrounding the administration of the test 
make the test inconclusive. 
[(A) Before beginning disposal operations, the operator shall pressure-test the 
long string casing. The test pressure for wells equipped to inject through 
tubing and packer must equal the maximum authorized injection pressure or 500 
psig, whichever is less, but must be at least 200 psig. The test pressure for 
wells that are permitted for injection through casing must equal the maximum 
permitted injection pressure or 200 psig, whichever is greater.] 
[(B) Each disposal well shall be pressure-tested in the manner provided in 
subparagraph (A) of this paragraph at least once every five years to determine 
if there are leaks in the casing, tubing, or packer. The commission's delegate 
may prescribe a schedule and mail notification to operators to allow for orderly 
and timely compliance with this requirement.] 
<nl>(E)<ol> <nl>Alternative testing methods.<ol> 
<nl>(i)<ol> [(C)] As an alternative to the testing required in subparagraph (B) 
of this paragraph, the tubing-casing annulus pressure may be monitored and 
included on the annual monitoring report required by paragraph <nl>(11)<ol> 
[(1)] of this section, with the authorization of the commission or its delegate 
and provided that there is no indication of problems with the well. Wells that 
are approved for tubing-casing annulus monitoring under this paragraph shall be 
tested in the manner provided under subparagraph <nl>(B)<ol> [(A)] of this 
paragraph at least once every ten years after January 1, 1990. 
<nl>(ii)<ol> The commission or its delegate may grant an exception for viable 
alternative tests or surveys <nl>or may require alternative tests or surveys as 
a permit condition<ol>.
<nl>(F)<ol> [(D)] The operator shall notify the appropriate district office at 
least 48 hours prior to the testing. Testing shall not commence before the end 
of the 48-hour period unless authorized by the district office. 
<nl>(G)<ol> [(E)] A complete record of all tests shall be filed in duplicate in 
the district office on the appropriate form within 30 days after the testing. 
<nl>(H)<ol> [(F)] In the case of permits issued under this section prior to the 
effective date of this amendment which require pressure testing more frequently 
than once every five years, the commission's delegate may, by letter of 
authorization, reduce the required frequency of pressure tests, provided that 
such tests are required at least once every three years. The commission shall 
consider the permit to have been amended to require pressure tests at the 
frequency specified in the letter of authorization.
<nl>(13)<ol> [(12)] Plugging. Disposal wells shall be plugged upon abandonment 
in accordance with sec.3.14 of this title (relating to Plugging). 
<nl>(14)<ol> [(13)] Penalties. 
(A) Violations of this section may subject the operator to penalties and 
remedies specified in the Texas Water Code, Chapter 27, and the Natural 
Resources Code, Title 3. 
(B) The certificate of compliance for any oil, gas, or geothermal resource well 
may be revoked in the manner provided in 3.68 of this title (relating to 
Pipeline Connection and Severance) for violation of this section.
[(14) Effective date. This section shall take effect on April 1, 1982.] 

sec.3.46. Fluid Injection into Productive Reservoirs.
(a) (No change.) 
(b) Filing of application. 
<nl>(1)<ol> <nl>Application.<ol> An application to conduct fluid injection 
operations in a reservoir productive of oil, gas, or geothermal resources shall 
be filed in Austin on the form prescribed by the commission <nl> accompanied by 
the prescribed fee<ol>. On the same date, one copy shall be filed with the 
appropriate district office. The form shall be executed by a party having 
knowledge of the facts entered on the form. The applicant shall file the 
freshwater injection data form if fresh water is to be injected.
<nl>(2)<ol> Commercial disposal well. An applicant for a permit to dispose of 
oil and gas waste in a commercial disposal well shall clearly indicate on the 
application and in the notice of application that the application is for a 
commercial disposal well permit. For the purposes of this rule, "commercial 
disposal well" means a well whose owner or operator receives compensation from 
others for the disposal of oil field fluids or oil and gas wastes that are 
wholly or partially trucked or hauled to the well, and the primary business 
purpose for the well is to provide these services for compensation. 
(c) Notice and opportunity for hearing. 
(1) The applicant shall give notice by mailing or delivering a copy of the 
application to <nl>affected persons who include<ol> the owner <nl> of record<ol> 
of the <nl>surface<ol> tract on which the well is located<nl>;<ol>[, to] each 
<nl>commission- designated<ol> [adjoining offset] operator <nl>of any well 
located within one half mile of the proposed injection well;<ol>[, to] the 
county clerk of the county in which the well is located<nl>;<ol>[,] and [to] the 
city clerk or other appropriate city official of any city where the well is 
located within the corporate limits of the city, on or before the date the 
application is mailed to or filed with the commission. <nl>For the purposes of 
this section, the term "of record" means recorded in the real property or 
probate records of the county in which the property is located.<ol> 
<nl>(2)<ol> In addition to the requirements of subsection (c)(1), a commercial 
disposal well permit applicant shall give notice to owners of record of each 
surface tract that adjoins the proposed injection tract by mailing or delivering 
a copy of the application to each such surface owner. 
<nl>(3)<ol> If, in connection with a particular application, the commission or 
its delegate determines that another class of persons should receive notice of 
the application, the commission or its delegate may require the applicant to 
mail or deliver a copy of the application to members of that class. Such classes 
of persons could include adjacent surface owners or underground water 
conservation districts. 
<nl>(4)<ol> [(2)] In order to give notice to other local governments, 
interested, or affected persons, notice of the application shall be published 
once by the applicant in a newspaper of general circulation for the county where 
the well will be located in a form approved by the commission or its delegate. 
The applicant shall file with the commission in Austin proof of publication 
prior to the hearing or administrative approval.
<nl>(5)<ol> [(3)] Protested applications:
(A) If a protest from an affected person or local government is made to the 
commission within 15 days of receipt of the application or of publication, 
whichever is later, or if the commission or its delegate determines that a 
hearing is in the public interest, then a hearing will be held on the 
application after the commission provides notice of hearing to all affected 
persons, local governments, or other persons, who express an interest, in 
writing, in the application. 
(B) For purposes of this section, "affected person" means a person who has 
suffered or will suffer actual injury or economic damage other than as a member 
of the general public <nl>or as a competitor<ol>, and includes surface owners of 
property on which the well is located and <nl> commission-designated operators 
of wells located within one-half mile of the proposed disposal well<ol> 
[adjoining offset operators]. 
<nl>(6)<ol> [(4)] If no protest from an affected person is received by the 
commission, the commission's delegate may administratively approve the 
application. If the commission's delegate denies administrative approval, the 
applicant shall have a right to a hearing upon request. After hearing, the 
examiner shall recommend a final action by the commission. 
(d) Subsequent commission action. 
(1) An injection well permit may be modified, suspended, or terminated by the 
commission for just cause after notice and opportunity for hearing, if: 
(A)-(C) (No change.) 
(D) the applicant has misrepresented any material facts during the permit 
issuance process; [or] 
(E) injected fluids are escaping from the permitted injection zone<nl>; or<ol> 
[.] 
<nl>(F)<ol> waste of oil, gas, or geothermal resources is occurring or is likely 
to occur as a result of the permitted operations. 
(2) (No change.) 
(e)-(f) (No change.) 
(g) Special equipment. 
(1) (No change.) 
(2) Pressure valve. The wellhead shall be equipped with a pressure observation 
valve on the tubing and for each annulus of the well. [Operators of existing 
injection wells shall comply with this requirement by no later than January 1, 
1983.] 
(3) (No change.) 
(h)-(i) (No change.) 
(j) Testing. 
<nl>(1)<ol> Purpose. The mechanical integrity of an injection well shall be 
evaluated by conducting pressure tests to determine whether the well tubing, 
packer, or casing have sufficient mechanical integrity to meet the performance 
standards of this rule, or by alternative testing methods under paragraph (5) of 
this subsection. 
<nl>(2)<ol> Applicability. Mechanical integrity of each injection well shall be 
demonstrated in accordance with provisions of paragraphs (4) and (5) of this 
subsection prior to initial use. In addition, mechanical integrity shall be 
tested periodically thereafter as described in paragraph (3) of this subsection. 
<nl>(3)<ol> Frequency. 
<nl>(A)<ol> Each injection well completed with surface casing set and cemented 
through the entire interval of protected usable- quality water shall be tested 
for mechanical integrity at least once every five years.
<nl>(B)<ol> In addition to testing required under subparagraph (A), each 
injection well shall be tested for mechanical integrity after every workover of 
the well. 
<nl>(C)<ol> An injection well that is completed without surface casing set and 
cemented through the entire interval of protected usable-quality ground water 
shall be tested at the frequency prescribed in the injection permit. 
<nl>(D)<ol> The commission or its delegate may prescribe a schedule and mail 
notification to operators to allow for orderly and timely compliance with the 
requirements in subparagraph (A) and subparagraph (B) of this paragraph. Such 
testing schedule shall not apply to an injection well for which an injection 
well permit has been issued but the well has not been drilled or converted to 
injection. 
<nl>(4)<ol> Pressure tests.
<nl>(A)<ol> Test pressure. 
<nl>(i)<ol> The test pressure for wells equipped to inject through tubing and 
packer shall equal the maximum authorized injection pressure or 500 psig, 
whichever is less, but shall be at least 200 psig. 
<nl>(ii)<ol> The test pressure for wells that are permitted for injection 
through casing shall equal the maximum permitted injection pressure or 200 psig, 
whichever is greater. 
<nl>(B)<ol> Pressure stabilization. The test pressure shall stabilize within 10 
percent of the test pressure required in subparagraph (A) of this paragraph 
prior to commencement of the test. 
<nl>(C)<ol> Pressure differential. A pressure differential of at least 200 psig 
shall be maintained between the test pressure on the tubing-casing annulus and 
the tubing pressure. 
<nl>(D)<ol> Test duration. A pressure test shall be conducted for a duration of 
30 minutes when the test medium is liquid or for 60 minutes when the test medium 
is air or gas. 
<nl>(E)<ol> Pressure recorder. Except for tests witnessed by a commission 
representative or wells permitted for injection through casing, a pressure 
recorder shall be used to monitor and record the tubing-casing annulus pressure 
during the test. The recorder clock shall not exceed 24 hours. The recorder 
scale shall be set so that the test pressure is 30 to 70 percent of full scale, 
unless otherwise authorized by the commission or its delegate.
<nl>(F)<ol> Test fluid. 
<nl>(i)<ol> The tubing-casing annulus fluid used in a pressure test shall be 
liquid for wells that inject liquid unless the commission or its delegate 
authorizes use of a different test fluid for good cause. 
<nl>(ii)<ol> The tubing-casing annulus fluid used in a pressure test shall 
contain no additives that may affect the sensitivity or otherwise reduce the 
effectiveness of the test. 
<nl>(G)<ol> Pressure test results. The commission or its delegate will consider, 
in evaluating the results of a test, the level of pollution risk that loss of 
well integrity would cause. Factors that may be taken into account in assessing 
pollution risk include injection pressure, frequency of testing and monitoring, 
and whether there is sufficient surface casing to cover all zones containing 
usable-quality water. A pressure test may be rejected by the commission or its 
delegate after consideration of the following factors: 
<nl>(i)<ol> the degree of pressure change during the test, if any; 
<nl>(ii)<ol> the level of risk to usable-quality water if mechanical integrity 
of the well is lost; and 
<nl>(iii)<ol> whether circumstances surrounding the administration of the test 
make the test inconclusive. 
[(1) Before beginning injection operations, the operator shall pressure-test the 
long string casing. The test pressure for wells equipped to inject through 
tubing and packer must equal the maximum authorized injection pressure or 500 
psig, whichever is less, but must be at least 200 psig. The test pressure for 
wells that are permitted for injection through casing must equal the maximum 
permitted injection pressure or 200 psig, whichever is greater.] 
[(2) Each injection well shall be pressure-tested in the manner provided in 
paragraph (1) of this subsection at least once every five years to determine if 
there are leaks in the casing, tubing, or packer. The commission's delegate may 
prescribe a schedule and mail notification to operators to allow for orderly and 
timely compliance with this requirement.] 
<nl>(5)<ol> <nl>Alternative testing methods.<ol>
<nl>(A)<ol> [(3)] As an alternative to the testing required in paragraph (2) of 
this subsection, the tubing-casing annulus pressure may be monitored and 
included on the annual monitoring report required by subsection (i) of this 
section, with the authorization of the commission or its delegate and provided 
that there is no indication of problems with the well. Wells that are approved 
for tubing-casing annulus monitoring under this paragraph shall be tested in the 
manner provided under paragraph <nl>(3) <ol> [(2)] of this subsection at least 
once every ten years after January 1, 1990. 
<nl>(B)<ol> The commission or its delegate grant an exception for viable 
alternative tests or surveys <nl>or may require alternative tests or surveys as 
a permit condition<ol>. 
<nl>(6)<ol> [(4)] The operator shall notify the appropriate district office at 
least 48 hours prior to the testing. Testing shall not commence before the end 
of the 48-hour period unless authorized by the district office. 
<nl>(7)<ol> [(5)] A complete record of all tests shall be filed in duplicate in 
the district office within 30 days after the testing. 
<nl>(8)<ol> [(6)] In the case of permits issued under this section prior to the 
effective date of this amendment which require pressure testing more frequently 
than once every five years, the commission's delegate may, by letter of 
authorization, reduce the required frequency of pressure tests, provided that 
such tests are required at least once every three years. The commission shall 
consider the permit to have been amended to require pressure tests at the 
frequency specified in the letter of authorization.
[(k) Plugging. Injection wells shall be plugged upon abandonment in accordance 
with sec.3.14 of this title (relating to Plugging).] 
[(l) Penalties.] 
[(1) Violations of this section may subject the operator to penalties and 
remedies specified in Title 3 of the Natural Resources Code and any other 
statutes administered by the commission.] 
[(2) The certificate of compliance for any oil, gas, or geothermal resource well 
may be revoked in the manner provided in sec.3.68 of this title (relating to 
Pipeline Connection and Severance) for violation of this section.] 
[(m) Effective date. This section shall take effect on April 1, 1982.] 
[(n) Gas storage operations. Storage of gas in productive or depleted reservoirs 
shall be subject to the provisions of sec.3.96 of this title (relating to 
Underground Storage of Gas in Productive or Depleted Reservoirs).] 
<nl>(k)<ol> [(o)] Area Permits. A person may apply for an area permit that 
authorizes injection into new or converted wells located within the area 
specified in the area permit. For purposes of this subsection, the term "permit 
area" shall mean the area covered or proposed to be covered by an area permit. 
Except as specifically provided in this subsection, the provisions of 
subsections (a) through <nl>(j)<ol> [(n)] of this section shall apply in the 
case of an area permit and all injection wells converted, completed, operated, 
or maintained in accordance with that permit. Area permits will specify 
requirements for injection well construction, operation, monitoring, and 
reporting. Except as otherwise specified in the area permit, once an area permit 
has been issued, the operator may apply to operate individual wells within the 
permit area as injection wells as specified in paragraph (3) of this subsection. 
(1) An application for an area permit must be accompanied by an application for 
at least one injection well. The applicant must: 
(A) identify the depth(s) of usable-quality water within the permit area, as 
determined by the Texas Natural Resource Conservation Commission;
(B) for each existing well in the permit area that may be converted to injection 
under the area permit, provide a wellbore diagram that specifies the casing and 
liner sizes and depths, packer setting depth, types and volumes of cement, and 
the cement tops for the well. A single wellbore diagram may be submitted for 
multiple wells that have the same configuration, provided that each well with 
that type of configuration is identified on the wellbore diagram and the diagram 
identifies the deepest cement top for each string of casing among all the wells 
covered by that diagram. 
(C) provide a wellbore diagram(s) showing the type(s) of completion(s) that will 
be used for injection wells drilled after the date the application for the area 
permit is filed, including casing and liner sizes and depths and a statement 
indicating that such wells will be cemented in accordance with the cementing 
requirements of sec.13 of this chapter (sec.3.13 of this title (relating to 
Casing, Cementing, Drilling, and Completion Requirements));
(D) identify the type or types of fluids that are proposed to be injected into 
any well within the permit area; 
(E) identify the depths from top to bottom of the injection interval throughout 
the permit area; 
(F) specify the maximum surface injection pressure for any well in the permit 
area covered by the area permit; 
(G) specify the maximum amount of fluid that will be injected daily in the 
permit area; 
(H) in lieu of the area-of-review required under subsection (e) of this section 
and subject to the area-of-review variance provisions of subsection (e) of this 
section, review the data of public record for wells that penetrate the proposed 
injection interval within the permit area and the area 1/4 mile beyond the outer 
boundary of the permit area to determine if all abandoned wells have been 
plugged in a manner that will prevent the movement of fluids from the injection 
interval into freshwater strata. The applicant shall identify in the application 
the wells which appear from the review of such public records to be unplugged or 
improperly plugged and any other unplugged or improperly plugged wells of which 
the applicant has knowledge. The applicant shall also identify in the 
application the date of plugging of each abandoned well within the permit area 
and the area 1/4 mile beyond the outer boundary of the permit area; and 
(I) furnish a map showing the location of each existing well that may be 
converted to injection under the area permit. The map shall be keyed to identify 
the configuration of all such wells as described in subparagraph (B) of this 
paragraph. 
(2) In lieu of the notice required under subsection (c)(1) of this section, 
notice of an area permit shall be given by providing a copy of the area permit 
application to each surface owner <nl>of record <ol> within the permit area; 
each <nl>commission-designated operator of a well located within one- half mile 
of the permit area<ol> [adjoining offset operator]; the county clerk of each 
county in which all or part of the permit area is located; and the city clerk or 
other appropriate city official of any incorporated city which is located wholly 
or partially within the permit area, on or before the date the application is 
mailed to or filed with the commission. Notice of an application for an area 
permit shall also be given in accordance with the requirements of subsection 
(c)(2). If, in connection with a particular application, the commission or its 
delegate determines that another class of persons, such as adjacent surface 
owners or an appropriate underground water conservation district, should receive 
notice of the application, the commission or its delegate may require the 
applicant to mail or deliver a copy of the application to members of that class. 
(3) Once an area permit has been issued and except as otherwise provided in the 
permit, no notice shall be required when an application for an individual 
injection well permit for any well covered by the area permit is filed. 
(4) Prior to commencement of injection operations in any well within the permit 
area, the operator shall file an application for an individual well permit with 
the commission in Austin. The individual well permit application shall include 
the following: 
(A) the well identification and, for a new well, a location plat; 
(B) a description of the well configuration, including casing and liner sizes 
and setting depths, the type and amount of cement used to cement each casing 
string, depth of cement tops, and tubing and packer setting depths; 
(C) an application fee in the amount of $100.00 per well; and 
(D) any other information required by the area permit. 
(5) An individual well permit may be issued by the commission or its delegate in 
writing or, if no objection to the application is made by the commission or its 
delegate within 20 days of receipt of the application, the individual well 
permit shall be deemed issued. 
(6) All individual injection wells covered by an area permit must be permitted 
in accordance with the requirements of this subsection and converted or 
completed, operated, maintained, and plugged in accordance with the requirements 
of this section and the area permit. 
<nl>(l)<ol> Gas storage operations. Storage of gas in productive or depleted 
reservoirs shall be subject to the provisions of sec.3.96 of this title 
(relating to Underground Storage of Gas in Productive or Depleted Reservoirs). 
<nl>(m)<ol> Plugging. Injection wells shall be plugged upon abandonment in 
accordance with sec.3.14 of this title (relating to Plugging). 
<nl>(n)<ol> Penalties. 
<nl>(1)<ol> Violations of this section may subject the operator to penalties and 
remedies specified in Title 3 of the Natural Resources Code and any other 
statutes administered by the commission. 
<nl>(2)<ol> The certificate of compliance for any oil, gas, or geothermal 
resource well may be revoked in the manner provided in sec.3.68 of this title 
(relating to Pipeline Connection and Severance) for violation 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 May 21, 1998.
TRD-9808376
Mary Ross McDonald
Deputy General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-7008

PART II. Public Utility Commission of Texas
CHAPTER 23.Substantive Rules
SUBCHAPTER I.Universal Service Fund
16 TAC sec.23.134
The Public Utility Commission of Texas (PUC or commission) proposes an amendment 
to sec.23.134 relating to Small and Rural Incumbent Local Exchange Carrier 
(ILEC) Universal Service Plan. Project Number 19293 has been assigned to this 
proceeding. The proposed amendment modifies the language in sec.23.134(e)(1)(B) 
so that small or rural ILEC recovery for access/toll revenue reductions from the 
Texas Universal Service Fund (TUSF) are based upon a reasonable amount 
determined by the commission and are no longer tied to the access/toll 
reductions of ILECs receiving support under sec.23.133 of this title (Texas High 
Cost Universal Service Plan (THCUSP)). PUC Docket Number 18515 is the compliance 
proceeding to implement sec.23.133. PUC Docket Number 18516 is the compliance 
proceeding to implement sec.23.134. As currently written, sec.23.134(e)(1)(B) 
cannot be implemented until the proceeding in Docket Number 18515 is completed. 
During the Open Meeting held on May 6, 1998, the commission voted to delay 
implementation of the TUSF until January 1, 1999. The commission also instructed 
staff to initiate a rulemaking proceeding to investigate severing the link 
between sec.23.133 and sec.23.134 so that the two compliance proceedings may be 
completed concurrently rather than consecutively. 
Diana Zake, chief policy analyst, and Eric White, assistant general counsel, 
have 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 adopting the proposed amendment. Ms. Zake and Mr. White also have determined 
that for each year of the first five years the section is in effect, the public 
benefit anticipated as a result of adopting the proposed amendment will be the 
efficient and more timely implementation of sec.23.134. 
There is no anticipated economic cost to persons who are required to comply with 
the section as amended. For each year of the first five years the section is in 
effect, there will be no effect on small businesses as a result of adopting the 
proposed amendment. 
Ms. Zake and Mr. White have further determined that for the first five years the 
proposed amendment is in effect there will be no impact on the opportunities for 
employment in the geographic areas of Texas affected by implementing the 
requirements of the proposed amendment. 
Comments on the proposed rule (16 copies) may be submitted to the Filing Clerk, 
Public Utility Commission of Texas, 1701 N. Congress Avenue, P.O. Box 13326, 
Austin, Texas, 78701-3326, within 20 days after publication. Reply comments may 
be submitted within 30 days after publication. All comments should refer to 
Project Number 19293. The commission invites specific comments regarding the 
costs associated with, and benefits that will be gained by, implementation of 
the amendment. The commission will consider the costs and benefits in deciding 
whether to adopt the amendment. 
The commission staff will conduct a public hearing on this rulemaking under 
Government Code sec.2001.029 at the commission's offices on July 10, 1998, at 
9:00 a.m. 
This amendment is proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.sec.14.002, 51.001, and 56.021-56.026 (Vernon 1998) 
(PURA). Section 14.002 provides the commission with the authority to make and 
enforce rules reasonably required in the exercise of its powers and 
jurisdiction. Section 51.001 sets forth the state's policy regarding 
telecommunications. Sections 56.021-56.026 set forth the requirements for the 
Universal Service Fund. 
Cross Index to Statutes: Public Utility Regulatory Act sec.sec.14.002, 51.001, 
and 56.021- 56.026. 

sec.23.134.Small and Rural Incumbent Local Exchange Carrier (ILEC) Universal 
Service Plan.
(a) - (d) (No change.) 
(e) Small and Rural ILEC Universal Service Plan monthly per-line support. A 
monthly per-line amount of support for each small or rural ILEC study area shall 
be determined in a one-time calculation using data from such small or rural 
ILEC's test year that has been audited by an independent auditor in conformance 
with generally accepted accounting principles (GAAP). 
(1) Calculation of the monthly per-line amount of support for each small or 
rural ILEC. The toll pool amounts and access/toll revenue reductions determined 
in accordance with subparagraphs (A) and (B) of this paragraph shall be added 
together. To calculate the per-line amount of support, the resulting sum will 
then be divided by the average number of eligible lines served by such small or 
rural ILEC during the test year. To calculate the monthly per-line amount of 
support, the result shall be divided by 12. 
(A) (No change.)
<nl>(B)<ol> <nl>Access/toll revenue reduction. At the time this section is 
implemented, a small or rural ILEC may set new carrier common line (CCL), 
residual interconnection charge (RIC), and/or intraLATA toll rates. Upon 
commission approval a small or rural ILEC may recover a reasonable amount of the 
difference between the previous rates and the new rates, computed on the basis 
of minutes of use in the test year. This amount is calculated by multiplying the 
difference between the previous rates and the new rates by the test year minutes 
of use. <ol>
[(B) Access/toll revenue reduction. If at the time this section is implemented:] 
[(i) a small or rural ILEC reduces its common carrier line (CCL) charge, 
residual interconnection charge (RIC) and/or intraLATA toll rates to match the 
reduction in CCL, RIC and/or intraLATA toll rates of one of the ILECs receiving 
support under sec.23.133 of this title, such small or rural ILEC may recover the 
difference between the previous rates and the new rates, computed on the basis 
of minutes of use in the test year. This amount is calculated by multiplying the 
difference between the previous and the new rates by the test year minutes of 
use; or] 
[(ii) a small or rural ILEC reduces its CCL, RIC, and/or intraLATA toll rates to 
the revised rate level of one of the ILECs receiving support under sec.23.133 of 
this title, such small or rural ILEC may, upon commission approval, recover the 
difference between the previous rates and the revised rates, computed on the 
basis of minutes of use in a test year. This amount is calculated by multiplying 
the difference between the previous and the revised rates by the test year 
minutes of use.]
(2) - (3) (No change.) 
(f) - (h) (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 May 21, 1998.
TRD-9808384
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 936-7308

CHAPTER 26.Substantive Rules Applicable to Telecommunications Service Providers
SUBCHAPTER O.9-1-1 Issues
16 TAC sec.26.431
The Public Utility Commission of Texas proposes new sec.26.431, relating to 
Monitoring Certain 9-1-1 Fees. The proposed rule will establish a procedure to 
monitor and review the appropriateness of certain 9-1-1 fees and the revenue 
from such fees. This rule is responsive to recent amendments to Texas Health and 
Safety Code, sec.sec.771.071, 771.072, 771.0725 and 771.076. Project Number 
18008 has been assigned to this proposed rule. 
Ms. Linda Hymans, senior utility analyst, Office of Regulatory Affairs-Telephone 
Industry Analysis Division, has determined that, although the enabling 
legislation may have fiscal implications for state or local government, there 
are no additional fiscal implications as a result of enforcing or administering 
this section.
Mr. Eric White, assistant general counsel, Office of Regulatory Affairs-Legal 
Division has determined that for each year of the first five years the proposed 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be to assure the appropriate allocation and levying of certain fees 
to promote 9-1-1 service statewide. It is unlikely there will be an effect on 
small businesses as result of enforcing this section. The proposed rule imposes 
no additional economic costs to persons who are required to comply with this 
rule as proposed over and above those imposed by the enabling legislation. Mr. 
White has determined that there is no impact on employment in the geographic 
area affected by implementing the requirements of this section. 
Comments on the new section (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, no later than June 22, 1998. Reply comments shall be 
filed no later than July 3, 1998. All comments should refer to Project Number 
18008. 
This section is proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 (Vernon 1998) (PURA), which provides the 
Public Utility Commission with the authority to make and enforce rules 
reasonably required in the exercise of its powers and jurisdiction; and Texas 
Health and Safety Code (1998), sec.sec.771.071, 771.072, 771.0725 and 771.076 
which authorizes the Public Utility Commission to monitor and review the rates 
and allocation of certain 9-1-1 fees. 
Cross Index to Statutes: Public Utility Regulatory Act, sec.14.002 and Texas 
Health and Safety Code (1998), sec.sec.771.071, 771.072, 771.0725 and 771.076. 

sec.26.431.Monitoring of Certain 911 Fees.
(a) Purpose. The purpose of this section is to implement the commission's 
statutory requirement to monitor the fees the Advisory Commission on State 
Emergency Communications (ACSEC) establishes and the allocation of the revenues 
from such fees pursuant to Texas Health and Safety Code (1998), sec.sec.771.071, 
771.072, 771.0725 and 771.076. 
(b) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) 9-1-1 Service - The meaning established in Texas Health and Safety Code 
(1998), sec.771.001(6). 
(2) Regional Planning Commission - The meaning established in Texas Health and 
Safety Code (1998), sec.771.001(10). 
(c) ACSEC shall: 
(1) provide documentation to the commission regarding the rate for the fees 
authorized in Texas Health and Safety Code (1998), sec.771.071 and sec.771.072, 
and the allocation of revenue pursuant to sec.771.072(d) and (e) including, but 
not limited to, documentation from each regional planning commission or other 
public agency designated by the regional planning commission to provide 9-1-1 
service; 
(2) complete direct mail notice, no later than the fifteenth day after providing 
its documentation to the commission, to the municipalities and counties whose 9-
1-1 service fees are established by ACSEC; and 
(3) publish in the Texas Register notice of its proposed rates and allocation of 
revenue, no later than the fifteenth day after ACSEC provides its documentation 
to the commission.
(d) Interested parties shall file, no later than 45 days after ACSEC publishes 
notice in the Texas Register, comments on ACSEC's documentation and on the 
appropriateness of the rates for each fee and the allocation of the revenue from 
such fees.
(e) The commission will review the documentation provided by ACSEC as well as 
the allocations derived therefrom and also identified by ACSEC, no later than 
120 days after ACSEC files its documentation. If the commission determines that 
a recommended rate or allocation is not appropriate, the commission shall 
provide comments to ACSEC, the governor, and the Legislative Budget Board 
regarding appropriate rates and the basis for that determination.
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 May 21, 1998.
TRD-9808383
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 936-7308

PART VIII. Texas Racing Commission
CHAPTER 303.General Provisions
SUBCHAPTER B.Powers and Duties of the Commission
16 TAC sec.303.35
The Texas Racing Commission proposes new sec.303.35, concerning access to the 
commission's programs. The Texas Racing Act was revised by sunset legislation 
effective September 1, 1997, and in that legislation, the Commission is required 
to develop a plan which describes how persons with disabilities or who do not 
speak English can have access to Commission programs. This rule implements the 
sunset legislation. 
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined 
that for the first five-year period the new section is in effect there will be 
no fiscal implications for local government as a result of enforcing the 
proposal. Ms. Marcus has also determined there may be fiscal implications for 
state government as a result of providing interpreters for persons who need 
interpreters for access to services. The exact cost of these services cannot be 
determined at this time, however, because it will depend on the number of 
persons requiring the services. 
Ms. Marcus has also determined that for each of the first five years the new 
section is in effect the public benefit anticipated as a result of enforcing the 
proposal will be that persons with disabilities and persons who do not speak 
English will have the ability to access all the Commission programs. There will 
be no fiscal implications for small businesses. There is no anticipated economic 
cost to an individual required to comply with the proposal. The proposal has no 
effect on the state's agricultural, horse breeding, horse training, greyhound 
breeding, or greyhound training industries. 
Comments on the proposal may be submitted on or before July 15, 1998, to Roselyn 
Marcus, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, 
Texas 78711-2080. 
The new section is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; and sec.2.22, which 
require a written plan to describe how persons with disabilities and who do not 
speak English can be provided reasonable access to the Commission's programs and 
services. 
The proposal implements Texas Civil Statutes, Article 179e. 

sec.303.35.Access to Commission Programs.
(a) Persons who do not speak English or who have a physical, mental, or 
developmental disability will be provided reasonable access to the Commission 
and to the Commission's programs. 
(b) All Commission facilities, including facilities on association grounds, will 
comply with Texas Civil Statutes, Article 9102, concerning architectural 
barriers and the policy of the State of Texas to encourage and promote the 
rehabilitation of handicapped or disabled citizens. Each association licensed by 
the Commission is required to ensure accessibility to its facilities for 
disabled persons, pursuant to sec.309.14 of this title (concerning Accessibility 
by Disabled Persons.) 
(c) All testing, whether oral, in sign language, or in a foreign language, will 
be arranged when an examination is required for licensure. A hearing before the 
Board of Stewards/Judges or the State Office of Administrative Hearings will be 
arranged as needed if a question of fitness for a particular license should 
arise. 
(d) Complaints against a person or entity regulated by the Commission will be 
accepted in all forms under all circumstances and the Commission will provide an 
interpreter with and investigator should a language problem arise. The 
Commission welcomes citizen input and communications at Commission meetings and 
on prior reasonable notice to the Commission, an interpreter will be provided to 
assist citizens in making presentations to 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 May 22, 1998.
TRD-9808446
Roselyn Marcus
General Counsel
Texas Racing Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 833-6699

CHAPTER 305.Licenses for Pari-mutuel Racing
SUBCHAPTER B.Individual Licenses
<nl>Division 2<ol>. Specific Licensees
16 TAC sec.305.49
The Texas Racing Commission proposes an amendment to sec.305.49, concerning the 
issuance of an emergency license. The proposal establishes a presumption that an 
incomplete application for an owner's license submitted to the Austin office for 
processing is also a request for an emergency license. This will ensure 
compliance with the three-day deposit requirement for license fees submitted to 
the Austin office and will streamline the licensing process.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined 
that for the first five-year period the amendment is in effect there will be no 
fiscal implications for local government as a result of enforcing the proposal. 
Ms. Marcus has also determined for the first five-year period the amendment is 
in effect there will be a positive fiscal implication for state government as a 
result of enforcing the proposal. The Commission estimates the state will earn 
interest on the license fees that will be more rapidly deposited because of this 
proposal. The exact amount of the increase cannot be determined at this time, 
however, because it will depend on the number of incomplete applications which 
are received. 
Ms. Marcus has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that full notice of this new procedure should expedite 
licensing for most applicants. There is no anticipated cost to an individual who 
acquires an emergency license and who completes the full licensing process 
within 21 days. An individual who fails to complete the licensing process within 
21 days will be required to pay an additional $75 license fee to obtain an 
owner's license. The proposal has no effect on the state's agricultural, horse 
breeding, horse training, greyhound breeding, or greyhound training industries. 
Comments on the proposal may be submitted on or before July 15, 1998, to Roselyn 
Marcus, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, 
Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; sec.7.02, which 
authorizes the commission to adopt categories of occupational licenses and to 
establish the criteria for those licenses; and sec.7.09, which authorizes the 
commission to issue temporary licenses pending investigation of an applicant's 
qualifications. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.305.49.Emergency License.
(a)-(c) (No change.) 
<nl>(d)<ol> <nl>An application for an owner's license submitted to the 
Commission's main office in Austin that is incomplete will be presumed to be a 
request for an emergency license and an emergency license may be granted.<ol> 
<nl>(e)<ol> [(d)] A license issued under this section expires on the 21st day 
after the date the emergency owner's license is issued. An owner may obtain only 
one emergency owner's license per year.
<nl>(f)<ol> [(e)] An owner granted an emergency license is prohibited from 
withdrawing any funds from his/her horseman's bookkeeper account until the owner 
complies with all licensing procedures provided by sec.305.42 of this title 
(relating to Owners). 
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 May 22, 1998.
TRD-9808447
Roselyn Marcus
General Counsel
Texas Racing Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 833-6699

CHAPTER 309.Operation of Racetracks
SUBCHAPTER A.General Provisions
<nl>Division 2<ol>. Facilities and Equipment
16 TAC sec.309.28
The Texas Racing Commission proposes an amendment to sec.309.28, concerning 
photofinish equipment. The amendment updates the rule to keep pace with the new 
technology used at racetracks. The amendment clarifies how and where the public 
can view a copy of a photofinish. 
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined 
that for the first five-year period the amendment is in effect there will be no 
fiscal implications for state or local government as a result of enforcing the 
proposal. 
Ms. Marcus has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that pari-mutuel racing will be of the highest integrity 
and will be fair to all participants. There will be no negative fiscal 
implications for small businesses as a result of enforcing this proposal. For 
most racetracks, the proposal should result in minimal savings due to the 
elimination of the automatic posting of each photofinish picture. There is no 
anticipated economic cost to an individual required to comply with the proposal. 
The proposal has no effect on the state's agricultural, horse breeding, horse 
training, greyhound breeding, or greyhound training industries. 
Comments on the proposal may be submitted on or before July 15, 1998, to Roselyn 
Marcus, General Counsel, for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; and sec.6.06, which 
authorize the Commission to adopt rules on all matters relating to the operation 
of racetracks. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.309.28.Photofinish Equipment.
(a)-(d) (No change.) 
(e) The association shall <nl>, upon request, make available for viewing the<ol> 
[promptly post a photograph of each] photofinish <nl> of each race<ol> for win, 
place, or show in <nl>a designated<ol> [an] area accessible to the public. 
(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 May 22, 1998.
TRD-9808448
Roselyn Marcus
General Counsel
Texas Racing Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 833-6699

CHAPTER 313.Officials and Rules of Horse Racing
SUBCHAPTER E.Training Facilities
16 TAC sec.313.503
The Texas Racing Commission proposes an amendment to sec.313.503, concerning the 
physical plant of training facilities. The amendment includes the requirement 
that the training facility obtain approval from the commission or executive 
secretary for the composition of the racing surface. This will help determine if 
unsafe conditions exist at the training facility. The amendment changes the 
approval authority from commission staff to the executive secretary.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined 
that for the first five-year period the amendment is in effect there will be no 
fiscal implications for state or local government as a result of enforcing the 
proposal. 
Ms. Marcus has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that the public will have accurate information regarding 
the racing surface and the safety of training facilities. There will be no 
fiscal implications for small businesses as a result of enforcing this proposal. 
There is no anticipated economic cost to an individual required to comply with 
the proposal. The proposal has no effect on the state's agricultural, horse 
breeding, horse training, greyhound breeding or greyhound training industries.
Comments on the proposal may be submitted on or before July 15, 1998, to Roselyn 
Marcus, General Counsel, for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; and sec.3.021, which 
authorize the Commission to protect the safety of race animals and adopt rules 
for the licensing and regulation of races and workouts at racetracks that do not 
offer pari-mutuel wagering. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.313.503.Physical Plant.
(a)-(c) (No change.) 
(d) A training facility shall provide an inside contour rail and an outside 
rail, both of which must be approved by the commission or the <nl> executive 
secretary<ol> [commission staff]. The turns on the racetrack must be banked to a 
degree approved by the commission or the <nl> executive secretary<ol> 
[commission staff]. <nl>The composition of the racing surface must be approved 
by the commission or executive secretary. <ol> A training facility shall provide 
a padded starting gate approved by the commission or the <nl>executive 
secretary<ol> [commission staff]. The training facility shall provide timing 
equipment that is capable of recording the time of a horse in at least 
hundredths of a second. The timing equipment is subject to testing and approval 
by the commission or the <nl> executive secretary<ol> [commission staff]. 
(e)-(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 May 22, 1998.
TRD-9808449
Roselyn Marcus
General Counsel
Texas Racing Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 833-6699

16 TAC sec.313.504
The Texas Racing Commission proposes an amendment to sec.313.504, concerning the 
operational requirements of training facilities. The amendment includes the 
determination of inappropriate or unsafe conditions at the training facility as 
grounds for the suspension of a training facility license. It allows the 
executive secretary to notify the pari-mutuel racetracks in this state and 
requires notification to the officials of the training facility.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined 
that for the first five-year period the amendment is in effect there will be no 
fiscal implications for state or local government as a result of enforcing the 
proposal. 
Ms. Marcus has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that the public will have accurate information regarding 
the conditions and safety of training facilities. There may be fiscal 
implications for small businesses as a result of enforcing this proposal. A 
training facility may suffer lost earnings if the official status of workouts is 
removed. Any lost earnings will vary depending on the type of condition that 
caused the removal of the official status and the length of time required to 
remedy the condition. Therefore, the exact amount of the fiscal implications for 
a training facility cannot be determined at this time. There is no anticipated 
economic cost to an individual required to comply with the proposal. The 
proposal has no effect on the state's agricultural, horse breeding, greyhound 
breeding or greyhound training industries. The proposal may affect the state's 
horse training industry in that the removal of official status of workouts 
obtained at a licensed training facility may affect a trainer's ability to enter 
a horse in a particular race. 
Comments on the proposal may be submitted on or before July 15, 1998, to Roselyn 
Marcus, General Counsel, for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; and sec.3.021, which 
authorize the Commission to protect the safety of race animals and adopt rules 
for the licensing and regulation of races and workouts at racetracks that do not 
offer pari-mutuel wagering. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.313.504.Operational Requirements.
(a)-(f) (No change.) 
(g) The facilities and operations of a licensed training facility are subject to 
inspection and verification by the commission or its staff at any time. If the 
executive secretary determines <nl>that inappropriate or unsafe conditions exist 
at the training facility or<ol> that the integrity of workouts obtained at the 
facility are in question, the executive secretary may immediately notify the 
pari-mutuel racetracks in this state that workouts obtained at the facility may 
not be accepted as official workouts. The executive secretary shall notify the 
general manager or chief executive officer of the licensed training facility of 
the executive secretary's findings and specifically describe the corrective 
action necessary to make the facility's workouts official<nl>, to rectify the 
inappropriate condition, or to make the conditions safe<ol>. The training 
facility may take the necessary corrective action or request a hearing on the 
executive secretary's findings. 
(h) (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 May 22, 1998.
TRD-9808450
Roselyn Marcus
General Counsel
Texas Racing Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 833-6699

CHAPTER 321.Pari-mutuel Wagering
SUBCHAPTER A.Regulation and Totalisator Operations
Regulation of Wagering
16 TAC sec.321.70
(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 Racing 
Commission or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal of sec.321.70, concerning tip 
sheets. This rule was adopted before simulcasting was introduced. This rule is 
now unworkable with the number of races being offered for wagering each day 
through simulcasting at the racetracks. The conflict of interest provision 
regarding horse ownership by a tip sheet vendor is also contained in 
sec.311.158. 
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined 
that for the first five-year period the repeal is in effect there will be no 
fiscal implications for state or local government as a result of enforcing the 
proposal. 
Ms. Marcus has also determined that for each of the first five years the repeal 
is in effect the public benefit anticipated as a result of enforcing the 
proposal will be that the commission rules will be effective and enforceable 
without any detriment to the integrity of horse racing. There will be no fiscal 
implications for small businesses. There is no anticipated economic cost to an 
individual required to comply with the proposal. The proposal has no effect on 
the state's agricultural, horse breeding, horse training, greyhound breeding, or 
greyhound training industries. 
Comments on the proposal may be submitted on or before July 15, 1998, to Roselyn 
Marcus, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, 
Texas 78711-2080. 
The repeal is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the Commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act; sec.6.06, which authorizes 
the Commission to adopt rules on all matters relating to the operation of 
racetracks; and sec.11.01, which authorizes the commission to adopt rules to 
regulate pari-mutuel wagering. 
The proposal implements Texas Civil Statutes, Article 179e.
sec.321.70.Tip Sheets.
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 May 22, 1998.
TRD-9808451
Roselyn Marcus
General Counsel
Texas Racing Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 833-6699

SUBCHAPTER C.Simulcast Wagering
<nl>Division 1<ol>. General Provisions
16 TAC sec.321.210 
The Texas Racing Commission proposes new sec.321.210, concerning the escrowed 
purse account. The proposal establishes a procedure for distributing the 
escrowed purse account generated from simulcasts of horse races at greyhound 
racetracks. 
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined 
that for the first five-year period the new section is in effect there will be 
no fiscal implications for state or local government as a result of enforcing 
the proposal. 
Ms. Marcus has also determined that for each of the first five years the new 
section is in effect the public benefit anticipated as a result of enforcing the 
proposal will be that there will be an established procedure to distribute 
escrowed purse accounts and that this procedure is flexible so as to allow 
distributions on a quarterly basis. There is no anticipated economic cost to an 
individual required to comply with the proposal. The proposal has no effect on 
the state's agricultural, horse breeding, horse training, greyhound breeding, or 
greyhound training industries. 
Comments on the proposal may be submitted on or before July 15, 1998, to Roselyn 
Marcus, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, 
Texas 78711-2080. 
The new section is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; sec.6.06, which 
authorizes the commission to adopt rules on all matters relating to the 
operation of racetracks; sec.6.091, which authorizes the commission to 
distribute money accrued in the escrowed purse account; sec.11.01, which 
authorizes the commission to adopt rules to regulate pari-mutuel wagering; and 
sec.11.011, which authorizes the commission to adopt rules to regulate pari-
mutuel wagering on simulcast races. 
The proposal implements Texas Civil Statutes, Article 179e. 

sec.321.210.Escrowed Purse Account.
(a) At least once a year, the Commission shall distribute all funds accrued in 
the escrowed purse account created by the Act, sec.6.091(e). The executive 
secretary shall establish a deadline for receiving requests for a distribution 
from the account and publicize that deadline to the horse racetrack associations 
at least 30 days before the deadline. 
(b) The Commission shall determine the amount of the distribution to each 
racetrack in accordance with the standards set forth in the Act, sec.6.091(e) 
and (f). 
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 May 22, 1998.
TRD-9808452
Roselyn Marcus
General Counsel
Texas Racing Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 833-6699

<nl>Division 2.<ol> Simulcasting at Horse Racetracks
16 TAC sec.321.234
The Texas Racing Commission proposes an amendment to sec.321.234, concerning the 
allocation of purses and funds for the Texas Bred Incentive Programs. The 
proposal provides a procedure for determining how purse revenues and Texas Bred 
Incentive money generated from simulcast wagering will be allocated among the 
various breeds of horses. The procedure allows all interested parties to have 
input into the determination and ensures fairness to all by requiring final 
approval from the Commission. 
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined 
that for the first five-year period the amendment is in effect there will be no 
fiscal implications for state or local government as a result of enforcing the 
proposal. 
Ms. Marcus has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that this procedure will ensure fairness in the decision-
making process and that the decision can be timely made. There will be no fiscal 
implications for small businesses as a result of enforcing this proposal. There 
is no anticipated economic cost to an individual required to comply with the 
proposal. The proposal has no effect on the state's agricultural, horse 
breeding, horse training, greyhound breeding, or greyhound training industries. 
Comments on the proposal may be submitted on or before July 15, 1998, to Roselyn 
Marcus, General Counsel, for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; sec.3.021, which 
authorize the Commission to regulate all aspects of horse racing in this state; 
sec.6.06, which authorizes the commission to adopt rules on all matters relating 
to the operation of racetracks; sec.11.01, which authorizes the commission to 
adopt rules to regulate pari-mutuel wagering; and sec.11.011, which authorizes 
the commission to adopt rules to regulate pari-mutuel wagering on simulcast 
races. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.321.234.Allocation of Purses and Funds for Texas Bred Incentive Programs.
<nl>(a)<ol> <nl> Purses <ol>
<nl>(1)<ol> <nl> An association shall recommend the percentages by which it will 
divide the purse revenue generated from simulcasting among the various breeds of 
horses. The percentages are subject to the approval of the commission. <ol>
<nl>(2)<ol> <nl>Before recommending the percentages, the association shall 
receive information from the organizations recognized by the commission or in 
the Act as representatives of horse owners, trainers, and/or breeders. <ol>
<nl>(3)<ol> <nl>When requesting commission approval of the percentages, the 
association shall present studies, statistics, or other documentation to support 
its proposed allocation of funds. <ol>
<nl>(b)<ol> <nl>Texas Bred Incentive Program Funds. <ol>
<nl>(1)<ol> <nl> The commission shall determine the percentages by which Texas 
Bred Incentive Program funds generated from simulcasting are divided among the 
various breeds of horses.<ol> 
<nl>(2)<ol> <nl>Before determining the percentages, the commission shall receive 
information from the official breed registries designated in the Act and the 
associations. <ol>
<nl>(3)<ol> <nl>In determining the percentages the commission shall consider the 
effect of the proposed percentages on the state's agricultural horse breeding 
and horse training industry. <ol>
[(a) The funds derived by an association from a simulcast that are dedicated to 
purses and the Texas Bred Incentive programs shall be allocated among the 
various breeds of animals in a manner determined by the association, subject to 
the approval of the commission. On request by the commission, the association 
shall provide documentation, formulae, or other evidence to support its proposed 
allocation of funds.] 
<nl>(c)<ol> [(b)] Effective January 1, 2001, an association shall set aside for 
the Texas Bred Incentive program at least 10% of the gross amount paid by an 
out-of-state receiving location to receive simulcasts of the association's 
races. An association shall allocate funds set aside under this subsection to 
the various breed registries in accordance with subsection (a) of this section. 
A breed registry shall distribute funds received under this subsection in the 
same manner as funds received pursuant to the Act, sec.6.08(f). 
<nl>(d)<ol> [(c)] Prior to January 1, 2001, the funds described by subsection 
<nl>(c)<ol> [(b)] of this section shall be allocated between the association 
exporting the simulcast signal and purses at the association in the percentages 
specified in sec.321.233(a) of this title (relating to Purses), provided the 
association can demonstrate to the commission a continuing financial need for 
such funds. An affected breed registry may petition the commission to have a 
racetrack receiving funds under subsection <nl>(c)<ol> [(b)] of this section 
demonstrate such financial need. If an association cannot demonstrate such 
financial need to the commission, the funding described by subsection 
<nl>(c)<ol> [(b)] of this section shall revert to the distribution called for 
effective January 1, 2001. 
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 May 22, 1998.
TRD-9808453
Roselyn Marcus
General Counsel
Texas Racing Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 833-6699

TITLE 19. EDUCATION
PART I. Texas Higher Education Coordinating Board
CHAPTER 5.Program Development
SUBCHAPTER A.General Provisions
19 TAC sec.5.11
The Texas Higher Education Coordinating Board proposes new sec.5.11, concerning 
General Provisions (Common Admission Application). Senate Bill 150, passed by 
the 75th Legislature, requires that the Coordinating Board, in consultation with 
the universities, develop a common application form to be used by the general 
academic teaching institutions in Texas for admission beginning with the 1999-
2000 academic year. The proposed new rule will provide adoption of the common 
admission application; the effective date the institutions should begin 
accepting the common admission application; reporting requirements; coordination 
of distributing copies of the common admission application to high schools; and 
development and payment provisions for the electronic application system. 
Sharon Cobb, Assistant Commissioner for Student Services has determined that for 
the first five-year period the rule is in effect the fiscal implications will 
result in additional costs to the universities of approximately $150,000 a year 
for the development and maintenance of the electronic system; however, because 
only one electronic system will be developed and shared by all institutions, the 
cost is substantially less than would be incurred if each university system or 
institution developed its own system. There will also be additional costs for 
the paper application because of the need to include majors and other 
information in the instructions for each institution. Additional costs of the 
paper form, to be determined when the bids are received are estimated to be 
approximately $40,000 a year. The cost of supplying applications to the high 
schools will be shared by the institutions and the Coordinating Board.
Ms. Cobb also has determined that for the first five years the rule is in effect 
the public benefit will be that the proposed form will allow university 
officials to select which sections they want their applicants to fill out, 
allowing for a more "customized" application form. 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 new rule 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 rule is proposed under Texas Education Code, sec.51.762, which provides 
the Texas Higher Education Coordinating Board with the authority to adopt rules 
concerning General Provisions (Common Admission Application). There were no 
other sections or articles affected by the proposed amendments.

sec.5.11.Common Admission Application.
(a) A common application form for freshman and undergraduate transfer 
applications is hereby adopted by the Coordinating Board pursuant to Texas 
Education Code, Section 51.762. The form is adopted in both a printed format and 
in an electronic format. The Board, with the assistance of an advisory committee 
composed of representatives of general academic teaching institutions, will 
review the form and recommend any changes for subsequent academic years.
(b) A general academic teaching institution as defined in Texas Education Code, 
Section 61.003, must accept freshman applications using the common admission 
application form beginning with applications for admission for the 1999-2000 
academic year. Institutions must accept freshman and undergraduate transfer 
applications using the common electronic admission application form beginning 
with applicants for admission for the 1999-2000 academic year. 
(c) Each institution shall collect information regarding gender, race/ethnicity, 
and date of birth as part of the application process and report this information 
to the Board. 
(d) The Coordinating Board shall ensure that copies of the freshman common 
admission application form and information for its use are available for 
distribution to appropriate personnel at each public high school. The 
Coordinating Board will work with institutions and high schools to ensure that 
all high schools have access to either the printed or electronic common 
application form. An institution of higher education may charge a reasonable fee 
for the filing of a common application form. 
(e) The Coordinating Board shall enter into a memorandum of understanding with a 
public institution of higher education to design and implement an electronic 
common application system for use by the public in applying for admission to 
Texas general academic teaching institutions and for distribution of the 
electronic application system to the university(s) designated by the applicant. 
After the system is implemented, operating costs of the system will be paid for 
by participating institutions. Each institution will pay a portion of the cost 
based on the percentage of their enrollment or number of applications received 
compared to the total statewide public higher education enrollment averaged over 
the previous five years of certified data. The Coordinating Board will monitor 
the cost of the system and notify the institutions on an annual basis of their 
share of the cost. Billings for the services for the coming year will be 
calculated and sent to the institutions in December and payments must be 
received by September 1.
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 May 20, 1998.
TRD-9808286
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER I.Approval of General Academic Courses for State Appropriations to 
Public Community and Junior Colleges and Other Appropriate Public Institutions 
Offering Lower Division General Academic Courses
19 TAC sec.sec.5.171-5.175
(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 
sec.sec.5.171 - sec.5.175, concerning Approval of General Academic Courses for 
State Appropriations to Public Community and Junior Colleges and Other 
Appropriate Public Institutions Offering Lower Division General Academic 
Courses. 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 proposed repeal of the rules will provide 
uniformity and consistency and the proposed restructuring of the rules will 
repeal rules for which the Board no longer has statutory authority and propose 
new rules to address legislation not previously included in Board rules. The 
proposed repeal of the rules 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 repeal of the rules 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, sec.sec.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 of 
General Academic Courses for State Appropriations to Public Community and Junior 
Colleges and Other Appropriate Public Institutions Offering Lower Division 
General Academic Courses. 
There were no other sections or articles affected by the proposed amendments.
sec.5.171.General Provisions. 
sec.5.172. Unique Need Courses.
sec.5.173.Compensatory (Including Developmental and Remedial) Education Courses. 
sec.5.174. Guidelines for Obtaining Course Approval.
sec.5.175.Utilization of Compensatory (Including Developmental and Remedial) 
Education Courses to Satisfy Degree Requirements.
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 May 20, 1998.
TRD-9808287
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 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 
sec.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 proposed repeal of the rules will 
provide uniformity and consistency and the proposed restructuring of the rules 
will repeal rules for which the Board no longer has statutory authority and 
propose new rules to address legislation not previously included in Board rules. 
The proposed repeal of the rules 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 repeal of the rules 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. Definition of "Out-of-District Unit".
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 May 20, 1998.
TRD-9808288
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER S.Transfer of Lower Division Course Credit
19 TAC sec.5.393
The Texas Higher Education Coordinating Board proposes amendments to sec.5.393, 
concerning Transfer of Lower Division Course Credit (Resolution of Transfer 
Disputes for Lower-Division Courses). The proposed amendments would carry out 
the provisions of Senate Bill 148 of the 75th Legislature, directing the 
Coordinating Board to develop a recommended core curriculum of at least 42 
semester credit hours, including a statement of the content, component areas, 
and objectives of the core curriculum. The proposed amendments to the rule offer 
those guiding principles but do not prescribe specific courses, a responsibility 
designated in the bill to each individual college and university.
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 it will provide for a common academic 
core of lower-division courses that could be readily transferred among public 
higher education institutions as individual courses or as a completed block; it 
will reduce obstacles to transfer and provide a more comprehensive procedure for 
the resolution of transfer disputes; it will provide for the evaluation and 
monitoring of each institution's transfer practices; and it will remove the 
problem of the state paying twice for the same courses. 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 rule are proposed under Texas Education Code, Subchapter 
S, sec.61.822, which provides the Texas Higher Education Coordinating Board with 
the authority to adopt rules concerning Transfer of Lower Division Course Credit 
(Resolution of Transfer Disputes for Lower-Division Courses). 
There were no other sections or articles affected by the proposed amendments.

sec.5.393. Resolution of Transfer Disputes for Lower-Division Courses.
(a) The following procedures shall be followed by public institutions of higher 
education in the resolution of credit transfer disputes involving lower-division 
courses: 
(1) If an institution of higher education does not accept course credit earned 
by a student at another institution of higher education, the receiving 
institution shall give written notice to the student and to the sending 
institution that transfer of the course credit is denied. <nl> A receiving 
institution shall also provide written notice of the reasons for denying credit 
for a particular course or set of courses at the request of the sending 
institution.<ol> 
<nl>(2)<ol> <p<nl> A student who receives notice as specified in Subsection (1) 
may dispute the denial of credit by contacting a designated official at either 
the sending or the receiving institution.
<nl>(3)<ol> [(2)] The two institutions and the student shall attempt to resolve 
the transfer of the course credit in accordance with Board rules <nl>and<ol> 
[and/or] guidelines.
<nl>(4)<ol> [(3)] If the transfer dispute is not resolved to the satisfaction of 
the student or the sending institution within 45 days after the date the student 
received written notice of denial, the institution <nl>that denies the course 
credit<ol> [whose credit is denied] for transfer shall notify the Commissioner 
of <nl>its<ol> [the] denial <nl>and the reasons for the denial<ol>. 
(b) The Commissioner of Higher Education or the Commissioner's designee shall 
make the final determination about <nl>a<ol> [the] dispute concerning the 
transfer of course credit and give written notice of the determination to the 
involved student and institutions. 
(c) <nl>Each institution<ol> [All public institutions] of higher education shall 
publish <nl>in its course catalogs<ol> the procedures <nl>specified<ol> 
[described] in subsections (a), (b) <nl>, (d), and (e)<ol> [and] of this section 
[in their undergraduate course catalogs]. 
(d) <nl>The Board shall collect data on the types of transfer dispute that are 
reported and the disposition of each case that is considered by the Commissioner 
or the Commissioner's designee.<ol> [All public institutions of higher education 
shall furnish data to the Board on transfer disputes as the Board may require in 
accord with its statutory responsibilities under Section 61.078(e) of the 
Education Code]. 
<nl>(e)<ol> <p<nl> If a receiving institution has cause to believe that a course 
being presented by a student for transfer from another school is not of an 
acceptable level of quality, it should first contact the sending institution and 
attempt to resolve the problem. In the event that the two institutions are 
unable to come to a satisfactory resolution, the receiving institution may 
notify the Commissioner of Higher Education, who. The Commissioner may 
investigate the course. If its quality is found to be unacceptable, the Board 
may discontinue funding for the course. 
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 May 20, 1998.
TRD-9808329
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

19 TAC sec.sec.5.400-5.405
The Texas Higher Education Coordinating Board proposes to Chapter 5, Subchapter 
S, new sec.sec.5.400-5.405, concerning Transfer of Lower Division Course Credit. 
The new proposed amendments would carry out the provisions of Senate Bill 148 of 
the 75th Legislature, directing the Coordinating Board to develop a recommended 
core curriculum of at least 42 semester credit hours, including a statement of 
the content, component areas, and objectives of the core curriculum. The 
proposed rules offer those guiding principles but do not prescribe specific 
courses, a responsibility designated in the bill to each individual college and 
university. 
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 it will provide for a common academic 
core of lower-division courses that could be readily transferred among public 
higher education institutions as individual courses or as a completed block; it 
will reduce obstacles to transfer and provide a more comprehensive procedure for 
the resolution of transfer disputes; it will provide for the evaluation and 
monitoring of each institution's transfer practices; and it will remove the 
problem of the state paying twice for the same courses. 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, 
Subchapter S, Section 61.822, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Transfer of 
Lower Division Course Credit. 
There were no other sections or articles affected by the proposed amendments.

sec.5.400. Definitions.
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise:
(1) Core Curriculum -- the curriculum in the liberal arts, humanities, sciences, 
and political, social, and cultural history, that all undergraduates of an 
institution of higher education are required to complete before receiving a 
baccalaureate degree. 
(2) Field of Study Curriculum -- a set of courses that will satisfy the lower- 
division requirements for a baccalaureate degree in a specific academic area at 
a general academic teaching institution. 
(3) Consistent with the Texas Common Course Numbering System (TCCNS) a lower-
division course that meets one of three conditions:
(A) it has an assigned a TCCNS number; 
(B) a TCCNS number has been requested for the course; or 
(C) the institution which offers the course has specified at least one TCCNS 
course that will be accepted in transfer in lieu of the course. 

sec.5.401. General Provisions.
(a) Nothing in this subchapter restricts the authority of an institution of 
higher education to adopt its own admission standards in compliance with this 
section or its own grading policies so long as it treats transfer students and 
native students in the same manner. 
(b) Institutional policies regarding acceptance of credit for correspondence 
courses, credit-by-examination, and other credit-earning instruments must be 
consistent with Southern Association of Colleges and Schools' guidelines and 
must treat transfer students and native students in the same manner. 

sec.5.402. Core Curriculum.
(a) In accordance with Texas Education Code, Chapter 61, Subchapter S, each 
general academic institution and community/technical college shall design and 
implement a core curriculum, including specific courses comprising the 
curriculum, of no less than 42 lower- division semester credit hours. No 
institution may require a core curriculum of more than 42 semester credit hours 
without Board approval. 
(b) Each institution's core curriculum must be designed to satisfy the exemplary 
educational objectives specified for the component areas of the "Core 
Curriculum: Assumptions and Defining Characteristics" adopted by the Board; must 
include only lower- division courses included in the "Texas Common Course 
Numbering System;" and must be consistent with the framework identified in 
Charts I and II of this subsection. Chart I specifies the minimum number of 
semester credit hours required in each of five major component areas that a core 
curriculum must include (with sub-areas noted in parentheses). Chart II 
specifies options available to institutions for the remaining 6 semester credit 
hours. 
(c) Institutions shall begin to honor student transfer of core courses and core 
curricula beginning in fall 1998, and must implement the core curriculum 
requirement by fall 1999. 
(d) If a student successfully completes the 42 semester credit hour core 
curriculum at an institution of higher education, that block of courses may be 
transferred to any other institution of higher education and must be substituted 
for the receiving institution's core curriculum. A student shall receive 
academic credit for each of the courses transferred and may not be required to 
take additional core curriculum courses at the receiving institution unless the 
board has approved a larger core curriculum at that institution. 
Figure: 1 19TACsec.5.402(d) 
Figure: 2 19TACsec.5.402(d)
(e) Except as specified in subsection (f) of this section, a student who 
transfers from one institution of higher education to another without completing 
the core curriculum of the sending institution shall receive academic credit 
within the core curriculum of the receiving institution for each of the courses 
that the student has successfully completed in the core curriculum of the 
sending institution. Following receipt of credit for these courses, the student 
may be required to satisfy the remaining course requirements in the core 
curriculum of the receiving institution. 
(f) Each student must meet the minimum number of semester credit hours in each 
component area; however, an institution receiving a student in transfer is not 
required to accept component core course semester credit hours beyond the 
maximum specified in a core component area. 
(g) An institution may include within its core curriculum a course or courses 
that combine exemplary educational objectives from two or more component areas 
of the exemplary educational objectives defined in this section. 
(h) Each institution must note core courses on the transcript of students as 
recommended by the Texas Association of Registrars and Admissions Officers. 
(i) Each institution must publish and make readily available to students its 
core curriculum requirements stated in terms consistent with the "Texas Common 
Course Numbering System."

sec.5.403. Core Curricula Larger than 42 Semester Credit Hours. 
The board will consider approval of a core curriculum from a general academic 
institution, community college, or technical college if it has been previously 
approved by the institution's Board of Regents or Board of Directors and is 
consistent with the following: 
(1) The institution must provide a narrative justification of the need and 
appropriateness of a larger core curriculum that is consistent with its role and 
mission. 
(2) The proposed core does not include more than 45 lower-division semester 
credit hours. 
(3) No proposed upper-division core course is substantially comparable in 
content or depth of study to a lower-division course listed in the "Texas Common 
Course Numbering System." 

sec.5.404. Criteria for Evaluation of Core Curricula. 
(a) Each institution must review and evaluate its core curriculum at intervals 
specified by the board and shall report the results of that review to the board. 
The evaluation should include: 
(1) the extent to which the curriculum is consistent with the elements of the 
core curriculum recommended by the Board; 
(2) the extent to which the curriculum is consistent with the "Texas Common 
Course Numbering System"; 
(3) the extent to which the curriculum is consistent with the elements of the 
core curriculum component areas, intellectual competencies, and perspectives as 
expressed in "Core Curriculum: Assumptions and Defining Characteristics" adopted 
by the Board; and 
(4) the extent to which the institution's educational goals and the exemplary 
educational objectives of the core curriculum recommended by the Board are being 
achieved. 
(b) Each institution's evaluation report must contain the following: 
(1) a table that compares the institution's core curriculum with the core 
component areas and exemplary educational objectives of the core curriculum 
recommended by the Board; 
(2) a brief description of the purpose and substance of the institution's core 
curriculum; 
(3) a description of the processes and procedures used to evaluate the 
institution's core curriculum; and 
(4) a description of the ways in which the evaluation results are utilized to 
improve the core curriculum at the institution.

sec.5.405.Field of Study Curricula.
(a) If a student successfully completes a field of study curriculum developed by 
the Board, that block of courses may be transferred to a general academic 
teaching institution and must be substituted for that institution's lower-
division requirements for the degree program for the field of study into which 
the student transfers, and the student shall receive full academic credit toward 
the degree program for the block of courses transferred. 
(b) A student who transfers from one institution of higher education to another 
without completing the field of study curriculum of the sending institution 
shall receive academic credit in the field of study curriculum of the receiving 
institution for each of the courses that the student has successfully completed 
in the field of study curriculum of the sending institution. Following receipt 
of credit for these courses, the student may be required to satisfy the 
remaining course requirements in the field of study curriculum of the receiving 
institution. 
(c) Each institution must review and evaluate its procedures for complying with 
field of study curricula at intervals specified by the Board and shall report 
the results of that review to 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 May 20, 1998.
TRD-9808194
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 8.Creation, Expansion, Dissolution, or Conservatorship of Public 
Community/Junior College Districts
SUBCHAPTER D.Formation of a Branch Campus
19 TAC sec.sec.8.71-8.76
The Texas Higher Education Coordinating Board proposes new sec.sec.8.71 - 8.76 
concerning Creation, Expansion, Dissolution, or Conservatorship of Public 
Community/Junior College Districts (Formation of a Branch Campus). The proposed 
new rules are as a result of a complete review, rewriting, and restructuring of 
current Board rules affecting public two-year degree granting institutions. The 
proposed new rules 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 new rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.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, sec.sec.61.051(c), 61.053, 61.061, 61.062(c)-(d), 
130.001(b)(3)-(4), 130.086, and 130.087, authorize the Coordinating Board to 
adopt policies, enact regulations, and establish rules to define, establish, and 
authorize a branch campus and to 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.
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. 

sec.8.74. Application and Approval Procedures. 
(a) The governing board of a community college district requesting authority to 
convert an out- of-district center/facility to a branch campus must submit a 
Letter of Application to the Commissioner. 
(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, a majority of which should be community college presidents, for the 
purposes of documenting that it meets the following standards and criteria for 
quality instruction and support services, as required by the Commission on 
Colleges of the Southern Association of Colleges and Schools and Coordinating 
Board rules and regulations: 
(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) 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 
paragraph (1) of this subsection.
(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. 
(3) Description of Staffing Plan. There must be sufficient academic and student 
support staff to meet the needs of faculty and students at the branch campus. 
(4) 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 local sources of community and/or 
economic support. 
(B) If a local tax is not levied, local sources of support must be furnished at 
a level sufficient to provide adequate facilities needed at the proposed branch 
campus location. "Facilities" include the operation and maintenance of the 
physical plant including any rehabilitation and repairs. Local sources of 
support may be "in kind." 
(C) Appropriate accounts which comply with generally accepted accounting 
principles 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. 
(5) 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 subsection (b) of this section, has been 
reviewed and a site visit conducted by 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.
(e) Board-approved branch campus sites shall be considered as auxiliary 
locations for the purposes of the Board's distance learning rules and 
regulations as outlined under Chapter 5, Subchapter H, of this title (relating 
to Approval of Distance Learning for Public Colleges and Universities).

sec.8.76.Reclassification.
The Board may withdraw approval for a branch campus whenever the Board.
(1) approves the establishment of a community/junior college district which 
includes the site of the branch campus (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), 
(2) approves the merger of the out-of-district area which includes the site of 
the branch campus with the parent district, or 
(3) determines that the community/junior college district has failed to maintain 
the standards and criteria of Board rules and regulations at the branch campus.
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 May 20, 1998.
TRD-9808307
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Program Development in Public Community/Junior
College Districts and Technical Colleges
SUBCHAPTER A.Definitions
19 TAC sec.9.1
The Texas Higher Education Coordinating Board proposes new sec.9.1, concerning 
Program Development in Public Community/Junior College Districts and Technical 
Colleges (Definitions). The proposed new section of the rule is as a result of a 
complete review, rewriting, and restructuring of current Board rules affecting 
public two-year degree granting institutions. The proposed new section of the 
rule will provide uniformity and consistency and the proposed restructuring of 
the rules will repeal rules for which the Board no longer has statutory 
authority and propose new rules to address legislation not previously included 
in Board rules. The proposed new section of the rule 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 new rule 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 rule is proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Program Development in Public 
Community/Junior College Districts and Technical Colleges (Definitions). There 
were no other sections or articles affected by the proposed amendments.

sec.9.1. Definitions. 
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
(1) Academic courses Semester or quarter hour credit courses as included or 
allowed under the provisions of the Community College Academic Course Guide 
Manual designed for college transfer to institutions of higher education in 
completion of associate and baccalaureate degree programs.
(2) 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 in which the content is 
primarily technical. 
(3) Board or coordinating board The Texas Higher Education Coordinating Board. 
(4) 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. 
(5) Commissioner of higher education or commissioner The chief executive officer 
of the Texas Higher Education Coordinating Board.
(6) Continuing education unit or CEU Ten (10) contact hours of participation in 
an organized continuing education experience under responsible sponsorship, 
capable direction, and qualified instruction, as outlined in the Guidelines for 
Instructional Programs in Workforce Education.
(7) Contractual agreements Agreements or contracts between public 
community/junior or technical colleges and one of the following: 
(A) a non-SACS/COC-accredited organization, for postsecondary instructional 
services that could not be offered otherwise; 
(B) a public secondary school, for instructional services that could not be 
offered otherwise; or 
(C) another SACS/COC-accredited institution of higher education, whether public 
or independent. 
(8) Contract instruction Postsecondary workforce education and training in which 
specific instruction is provided by a public community/junior or technical 
college or a non-SACS/COC- accredited organization to a contracting entity. This 
arrangement is utilized when conventional methodology or instructional systems 
are difficult or impossible to obtain. 
(9) Distance education Instruction delivered to any single or multiple 
location(s) 
(A) outside the boundaries of the taxing authority of a community/junior college 
district; or
(B) via instructional telecommunications to any other distance location. 
(10) 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. 
(11) Independent institution of higher education A private or independent 
college or university that is: 
(A) organized under the Texas Non-Profit Corporation Act;
(B) exempt from taxation under Article V, Section 2, of the Texas Constitution 
and Section 501(c)(3) of the Internal Revenue Code; and
(C) accredited by the Southern Association of Colleges and Schools Commission on 
Colleges. 
(12) Postsecondary institutions Any public community/junior college, public 
technical college, public senior college or university offering applied 
associate degree programs, and proprietary institutions offering applied 
associate degree programs. 
(13) Related-instruction Organized off-the-job classroom instruction in 
theoretical or technical subjects required for the completion of an 
apprenticeship program. 
(14) Remedial and Compensatory All courses designated as developmental or 
remedial in the Academic Course Guide Manual. These courses are designed to 
address academic deficiencies and may not be offered for college degree credit. 
(15) SACS/COC The Southern Association of Colleges and Schools Commission on 
Colleges. 
(16) Technical courses or programs Workforce education courses or programs for 
which semester/quarter credit hours are awarded. 
(17) Unique need academic course an academic course created by a college to 
satisfy a unique need and designed to transfer into a baccalaureate program. 
(18) Vocational courses or programs Workforce education courses or programs for 
which continuing education units (CEUs) are awarded.
(19) Workforce continuing education course A course offered for continuing 
education units (CEUs) with an occupationally specific objective and supported 
by state funding. A workforce continuing education course differs from a 
community service course offered for recreational or avocational purposes and is 
not supported by state funding.
(20) Workforce education Technical courses and programs for which 
semester/quarter credit hours are awarded, and vocational courses and programs 
for which continuing education units are awarded. Workforce education courses 
and programs prepare students for immediate employment or job upgrade within 
specific occupational categories.
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 May 20, 1998.
TRD-9808308
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER B.General Provisions
19 TAC sec.sec.9.21-9.33
The Texas Higher Education Coordinating Board proposes new sec.sec.9.21 - 9.33, 
concerning Program Development 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 new proposed rules 
will provide uniformity and consistency and the proposed restructuring of the 
rules will repeal rules for which the Board no longer has statutory authority 
and propose new rules to address legislation not previously included in Board 
rules. The new proposed rules 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 rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Program Development in Public 
Community/Junior College Districts and Technical Colleges (General Provisions). 
There were no other sections or articles affected by the proposed amendments.

sec.9.21. Purpose.
This subchapter outlines the rules and regulations the Coordinating Board shall 
use in various areas relating to program development and the general operation 
of a public community/junior or technical college. 

sec.9.22. Authority.
The Texas Education Code, Chapter 51, Subchapter C, and sec.sec.51.308, 
51.403(d)-(e), 51.911, 51.917, 61.051, 61.053, 61.059, 61.060-61.063, 61.084, 
130.001(b)(3)-(4), 130.003, 130.005, 130.0051, 130.008, and 130.009, authorize 
the Coordinating Board to adopt policies, enact regulations, and establish rules 
for various functions relating to program development and the general operation 
of a public community/junior or technical college.

sec.9.23. Small Classes.
(a) Each public community/junior and technical college shall submit to the Board 
a small class report to include course number, title of course, and name of 
instructor for classes having fewer than 10 registrants. This report shall be 
submitted each semester. Individual instruction courses and courses taught via 
instructional telecommunications are exempt. 
(b) Small classes may be offered according to the guidelines for public senior 
colleges and universities as prescribed under Chapter 5, Subchapter O, Section 
5.301 of this title (relating to General Provisions).

sec.9.24. Student Performance.
(a) Each public community/junior and technical college shall report student 
performance as prescribed under subsection (b) of this section to the high 
school or public junior/community or technical college last attended during the 
first year a student is enrolled after graduation from high school.
(b) A student performance report includes initial assessment student test 
scores, as prescribed under Chapter 5, Subchapter P of this title (relating to 
Testing and Developmental Education), descriptions of developmental education 
courses required, and individual student grade point averages. 
(c) Appropriate safeguards shall be implemented to ensure student privacy in 
these reports. 

sec.9.25. Religious Holy Days.
Policies regarding religious holy day observances at public community/junior and 
technical colleges are subject to Chapter 5, Subchapter A, Section 5.5 of this 
title (relating to General Provisions). This section provides particular 
requirements for determining acceptable student attendance polices relating to 
religious holy days.

sec.9.26. Faculty; Developmental Leave, Use of English. 
(a) Developmental Leave. 
(1) The governing board of each public community/junior and technical college 
shall establish a procedure and regulations granting faculty development leaves 
in accordance with the Texas Education Code, Section 51.917, and shall file a 
copy of these regulations with the Board. 
(2) Amendments to the regulations shall be filed with the Board by the governing 
board no later than 30 days after the effective date of the amendment. 
(b) Use of English. 
(1) The governing board of each public community/junior and technical college 
shall establish a program and regulations for assuring the English proficiency 
of all faculty members and the availability of all credit courses taught in the 
English language in accordance with the Texas Education Code, Section 51.917. 
(2) This shall not prohibit faculty teaching foreign language courses from 
conducting those courses in the appropriate foreign language. Nor does it 
prohibit faculty from providing individual assistance to a student in that 
student's native language. 
(3) The governing board of each public community/junior and technical college 
shall submit to the Board a description of the program as described in paragraph 
(1) of this subsection. 
(4) The Board shall approve and monitor the program established at each public 
community/junior and technical college. 
(5) The Board shall determine the cost of the program described in subsection 
(1) of this section. The faculty member needing the course shall take the course 
until deemed proficient in English by his or her supervisor. The faculty member 
may pay the cost of the program through payroll deduction. 

sec.9.27. Training for Governing Boards.
Chapter 1, Subchapter A, Section 1.9 of this title (relating to General 
Provisions) is herein applicable to public community/junior and technical 
colleges. This section provides for the training of members of governing boards 
and trustees for public institutions of higher education; however, members of 
community/junior college governing boards may not be required to attend a 
training session. 

sec.9.28. Driver Education Courses.
Institutions of higher education shall be permitted to offer driver education 
courses for the purpose of preparing students to obtain a Texas driver's license 
if approved by the State Board of Education. Institutions of higher education 
shall be subject to the rules and regulations regarding driver education of the 
State Board of Education. 

sec.9.29. Related-Instruction for Apprenticeship Programs. 
Related-instruction in apprenticeship programs approved by the Bureau of 
Apprenticeship and Training are eligible for formula funding. Funding for all 
other components of apprenticeship programs is subject to the rules and 
regulations of the Texas Workforce Commission as prescribed under the Texas 
Education Code, Chapter 133. 

sec.9.30. Appropriations. 
To be eligible to receive its proportionate share of the biennial appropriations 
for support, maintenance, operation, and improvement, each public 
community/junior college must: 
(1) be certified as a public community/junior college as prescribed by Section 
9.31 of this title (relating to Certification); 
(2) offer a minimum of 24 semester credit hours of workforce education courses; 
(3) have complied with all existing laws, rules, and regulations governing the 
establishment and maintenance of public community/junior colleges; 
(4) collect, from each full-time and part-time student enrolled, appropriate 
matriculation and other fees as required by law; 
(5) grant, when properly applied for, the scholarships and tuition exemptions 
provided for in the Texas Education Code; and 
(6) levy and collect ad valorem taxes as provided by law for the operation and 
maintenance of the institution. 

sec.9.31. Certification. 
The Commissioner shall file with the State Auditor and the State Comptroller on 
or before October 1 of each year a list of the public community/junior colleges 
in the state and certify the names of those colleges that have complied with the 
standards, rules, and regulations prescribed by the Board. 

sec.9.32. Name Change. 
(a) The governing board of any public community/junior college district may by a 
duly adopted resolution change the name of the district by substituting the word 
"community" for the word "junior" in the name, or by eliminating the word 
"community" or "junior" from the name of the district, unless the change would 
cause the district to have the same name as an existing district. 
(b) A copy of the resolution duly certified by the secretary of the governing 
board must be filed with the Board. 
(c) The name change shall become effective upon the filing of the resolution 
with the Board and thereafter all references to the district shall be by use of 
the new name. 

sec.9.33. Uniform Dates for Adding/Dropping Courses Pertaining to Refunds. 
(a) Courses at public community/junior colleges may be added by students within 
the first week of classes in each regular term. A student may not enroll in a 
course after that date. 
(b) Courses at public community/junior colleges may be dropped and a student 
entitled to a refund of tuition and fees as outlined under Chapter 21, 
Subchapter A of this title (relating to General Provisions). 
(c) Colleges using a term other than semesters may petition the Board for the 
establishment of different add/drop dates.
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 May 20, 1998.
TRD-9808309
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER C.Purpose, Role, and Mission
19 TAC sec.sec.9.51-9.55
The Texas Higher Education Coordinating Board proposes new sec.sec.9.51 - 9.55, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Purpose, Role and Mission). The proposed new rules are as a 
result of a complete review, rewriting, and restructuring of current Board rules 
affecting public two-year degree granting institutions. The proposed new rules 
will provide uniformity and consistency and the proposed restructuring of the 
rules will repeal rules for which the Board no longer has statutory authority 
and propose new rules to address legislation not previously included in Board 
rules. The proposed new rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Program Development in Public 
Community/Junior College Districts and Technical Colleges (Purpose, Role and 
Mission). 
There were no other sections or articles affected by the proposed amendments.

sec.9.51. Purpose.
This subchapter provides rules and regulations for public community/junior and 
technical colleges in establishing and publishing their purpose, role, and 
mission statements, and for the Board's review of these statements. 

sec.9.52. Authority.
The Texas Education Code, Sections 61.051, 61.053, 61.0511, 61.060, 61.061, 
61.062, 130.001, 130.003(e), 130.0011, and 135.01, authorize the Coordinating 
Board to adopt policies, enact regulations, and establish rules for the review 
of the purpose and role and mission statements of public community/junior and 
technical colleges.

sec.9.53. Role, Mission, and Purpose of Public Community/Junior and Technical 
Colleges. 
(a) Each public community/junior and technical college must develop a statement 
regarding the purpose, role, and mission of the institution reflecting the three 
missions of higher education: teaching, research, and public service. The 
specialized nature of the role and mission of the technical college system is 
included in Chapter 11 of this title (relating to the Texas State Technical 
College System). 
(b) Each public community/junior college shall include in its role and mission 
statement the purpose of the community/junior college as prescribed under Texas 
Education Code, Section 130.003(e), that it shall primarily serve its local 
taxing district and service area, offering vocational, technical, and academic 
courses for certificates or associate degrees. Continuing education, remedial 
and compensatory education consistent with open admission policies, and a 
program of counseling and guidance shall also be provided.

sec.9.54. Publication of Purpose, Role, and Mission Statements. 
Each public community/junior and technical college must publish its purpose, 
role, and mission statement in its official publication for students, generally 
the college catalog. 

sec.9.55. Board Review of Purpose, Role, and Mission Statements.
As a part of the institutional effectiveness review process prescribed in 
Chapter 10 of this title (relating to Institutional Effectiveness in Public 
Community/Junior College Districts and Technical Colleges), the Board staff 
shall determine if the purpose, role, and mission statement of each institution 
addresses the specific functions as prescribed by the Texas Education Code, 
Sections 61.0511, 130.003(e), 130.0011, and 135.01, for public community/junior 
colleges and technical colleges.
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 May 20, 1998.
TRD-9808310
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Public Junior Colleges
SUBCHAPTER D.Basic Standards
19 TAC sec.sec.9.61-9.77
(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 
sec.sec.9.61-9.77, concerning Basic Standards. 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 repeal of the rules 
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 repeal of the rules 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 repeal of the rules 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, sec.sec.61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Basic Standards. 
There were no other sections or articles affected by the proposed amendments. 
sec. 9.61.General Provisions. 
sec.9.62. Organization and Purpose. 
sec.9.63. Admission. 
sec.9.64. Instructional Departments. 
sec.9.65. Qualification and Professional Growth of Faculty. 
sec.9.66. Salaries and Tenure. 
sec.9.67. Classroom Load of Instructors. 
sec.9.68. Student Class Load. 
sec.9.69. Size of Classes. 
sec.9.70. Local Financial Support.
sec.9.71. Library. 
sec.9.72. Laboratories. 
sec.9.73. Plant and General Facilities. 
sec.9.74. Student Activities. 
sec.9.75. Student Services. 
sec.9.76. General Character of the Institution. 
sec.9.77. Trustee Professional Development.
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 May 20, 1998.
TRD-9808289
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Program Development in Public Community/Junior College Districts and 
Technical Colleges
SUBCHAPTER D.Transferabale Academic Courses
19 TAC sec.sec.9.71-9.77
The Texas Higher Education Coordinating Board proposes new sec.sec.9.71-9.77, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Transferable Academic Courses). The proposed new rules are 
as a result of a complete review, rewriting, and restructuring of current Board 
rules affecting public two-year degree granting institutions. The proposed new 
rules will provide uniformity and consistency and the proposed restructuring of 
the rules will repeal rules for which the Board no longer has statutory 
authority and propose new rules to address legislation not previously included 
in Board rules. The proposed new rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Program Development in Public 
Community/Junior College Districts and Technical Colleges (Transferable Academic 
Courses). 
There were no other sections or articles affected by the proposed amendments.

sec.9.71. Purpose.
This subchapter provides rules and procedures for the approval and continuation 
of academic courses for public community/junior or technical colleges eligible 
for state appropriations. 

sec.9.72. Authority.
The Texas Education Code, Sections 61.051(g), 61.053, 61.054, 61.060, 61.061, 
61.062, 130.001(b)(3)-(4), and 130.003(e)(3), authorize the Coordinating Board 
to adopt policies, enact regulations, and establish rules for the coordination 
of transferable academic courses eligible for state appropriations. 

sec.9.73. General Provisions. 
(a) State funding shall be provided for lower-division level general academic 
courses in public community and junior colleges and other appropriate public 
institutions offering lower- division general academic courses if such courses: 
(1) are listed in the Academic Course Guide Manual; or 
(2) have been reviewed by the Board staff and have been approved in accordance 
with the unique need provision; and 
(3) are consistent with the Texas Common Course Numbering System. 
(b) A standing advisory committee composed of representatives from public 
community and junior colleges and other appropriate public institutions offering 
lower-division general academic courses will meet annually to recommend to the 
Coordinating Board staff appropriate courses to be added to, revised, or deleted 
from the Academic Course Guide Manual, as well as their proper assignment of 
Texas Common Course Numbers. The Coordinating Board staff shall provide the 
committee data regarding course enrollments and transferability for the purpose 
of considering revisions to the Academic Course Guide Manual.
(c) Criteria used to revise the Academic Course Guide Manual shall include the 
following: 
(1) Courses offered by three or fewer community/junior colleges and other 
appropriate public institutions offering lower-division general academic courses 
during the previous academic year will be reviewed by the committee for deletion 
unless other factors indicate a need to retain such courses. 
(2) Unique need courses which have been offered at several public community and 
junior colleges and other appropriate institutions offering lower-division 
general academic courses in different geographic regions of the state may be 
recommended for addition to the Academic Course Guide Manual upon request of a 
sponsoring institution. 
(3) Revisions in course content may be considered upon request of a sponsoring 
institution. 
(4) Courses included in the lower-division portion of an academic core 
curriculum at any public institution of higher education may be considered by 
the committee for inclusion in the Academic Course Guide Manual. 

sec.9.74. Unique Need Courses. 
(a) An academic course may be approved for unique need if it meets the following 
criteria: 
(1) The course must be acceptable for transfer and apply toward a baccalaureate 
degree to satisfy general academic, major, or elective requirements at a minimum 
of two regional universities. Courses accepted to meet general academic or major 
requirements are strongly preferred. Copies of current letters signed by the 
universities' registrars documenting transferability must be included in the 
application. 
(2) The course must have college-level rigor. A course designed to meet a 
community service, leisure, vocational, or avocational need are inappropriate 
for unique need approval and state funding. 
(b) Procedures for unique need approval are as follows: 
(1) The application for each unique need submitted must be accompanied by a 
statement of need for the course and a syllabus which includes a course 
description, detailed course outline, and objectives. 
(2) Colleges must reapply for approval of unique need courses on an annual 
basis. At the institution's request upon the third consecutive approval, a 
course may be considered for continued placement in that institution's course 
inventory. The request must include the enrollments and frequency with which the 
course was offered over the preceding three years. Courses may be approved for 
continuing unique need if they have been offered at least three times with an 
average enrollment of 10 students or greater. The Board staff shall review and 
evaluate continued need on a five-year cycle. 
(c) Courses listed in the Academic Course Guide Manual but offered for a greater 
number of contact hours or semester credit hours than specified must be 
submitted for unique need approval. 

sec.9.75.Compensatory (Including Developmental and Remedial) Education Courses. 
Developmental/remedial courses approved for community and technical college 
instruction and eligible for state funding are listed in both the Academic 
Course Guide Manual and the Workforce Education Course Manual. Such courses 
should be used to support both academic and workforce education students as 
appropriate. 

sec.9.76. Utilization of Compensatory (Including Developmental and Remedial) 
Education Courses to Satisfy Degree Requirements. 
Courses designated as compensatory in the Academic Course Guide Manual may not 
be used to satisfy degree requirements. Such courses may be used as corequisites 
or prerequisites for degree courses as determined by local institutions. 

sec.9.77. Disapproval of Courses; Noncompliance. 
No funds appropriated to any public community/junior college or technical 
college may be expended for any unique need course which has not been approved 
by the Board staff. 
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 May 20, 1998.
TRD-9808311
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Public Junior Colleges
SUBCHAPTER E.Operational Provisions
19 TAC sec.sec.9.91, 9.92, 9.94-9.111
(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 
sec.sec.9.91, 9.92, 9.94- 9.111, concerning Operational Provisions. 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 proposed repeal of the rules will provide uniformity and consistency and the 
proposed restructuring of the rules will repeal rules for which the Board no 
longer has statutory authority and propose new rules to address legislation not 
previously included in Board rules. The proposed repeal of the rules 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 repeal of the rules 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, sec.sec.61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Operational 
Provisions 
There were no other sections or articles affected by the proposed amendments.
sec.9.91. General Provisions.
sec.9.92. Eligibility of Students.
sec.9.94. New Colleges. 
sec.9.95. Combined Courses. 
sec.9.96. Library. 
sec.9.97. Local Support. 
sec.9.98. Separate Accounting. 
sec.9.99. Out-of-District Courses. 
sec.9.100. Part-time Instructors. 
sec.9.101. Length of Course. 
sec.9.102. New Courses or Classes.
sec.9.103. Reporting for State Reimbursement. 
sec.9.104. Courses Approved for Appropriations Purposes.
sec.9.105. Criteria for Similarity of General Academic Courses. 
sec.9.106. Physical Education Classes. 
sec.9.107. Bible Classes.
sec.9.108. Music and Art Classes. 
sec.9.109. Technical Courses.
sec.9.110. Records and Reports. 
sec.9.111. Violation of Rules.
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 May 20, 1998.
TRD-9808290
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Program Development in Public Community/Junior College Districts and 
Technical Colleges
SUBCHAPTER E.Certificate and Associate Degree Programs
19 TAC sec.sec.9.91-9.97
The Texas Higher Education Coordinating Board proposes new sec.sec.9.91-9.97, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Certificate and Associate Degree Programs). The proposed new 
rules are as a result of a complete review, rewriting, and restructuring of 
current Board rules affecting public two-year degree granting institutions. The 
proposed new rules will provide uniformity and consistency and the proposed 
restructuring of the rules will repeal rules for which the Board no longer has 
statutory authority and propose new rules to address legislation not previously 
included in Board rules. The proposed new rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Program Development in Public 
Community/Junior College Districts and Technical Colleges (Certificate and 
Associate Degree Programs). 
There were no other sections or articles affected by the proposed amendments.

sec.9.91. Purpose. 
This subchapter provides rules and procedures for the approval and continuation 
of certificate and associate degree programs in public community/junior and 
technical colleges eligible for state appropriations. 

sec.9.92. Authority. 
The Texas Education Code, Section 61.003, 61.051(e)(f), 61.0513, 61.053, 61.054, 
61.055, 61.061, 61.062(c)-(d), 61.075, 130.001(b)(3)-(4), 130.003(e)(1)(2)(3) 
and (7) and 135.04, authorize the Coordinating Board to adopt policies, enact 
regulations, and establish rules for the coordination of postsecondary technical 
and vocational certificate and associate degree programs eligible for state 
appropriations. 

sec.9.93. Application, Approval, and Revision Procedures for Instructional 
Programs in Workforce Education.
(a) In accordance with the Guidelines for Instructional Programs in Workforce 
Education as approved by the Board, each institution wishing to offer a new 
certificate or applied associate degree program must have completed the 
following procedures: 
(1) Completion of the Application for the Approval of a New Technical or 
Continuing Education Program. Completed application forms must be approved by 
the governing board and the chief executive officer of the institution, and 
forwarded to the Board's Community and Technical Colleges Division. 
(2) Completion of Staff Review Process. The Board staff shall review the 
application for satisfactory fulfillment of the new program requirements and 
procedures as outlined in the Board-approved Guidelines for Instructional 
Programs in Workforce Education. The staff shall confer with the institution 
when additional information or clarification is needed. 
(3) Completion of Formal Program Review. 
(A) Once the program requirements have been met, the Board staff shall schedule 
the program for formal program review. This review process shall include 
representatives from the institution, the Board staff, and other appropriate 
agencies and institutions of higher education. 
(B) The Assistant Commissioner for Community and Technical Colleges Division 
shall recommend applied associate degree programs to the Commissioner for 
approval or disapproval by the Board. 
(4) New Program Approval. 
(A) The Board delegates to the Commissioner final approval authority for all 
certificate programs. 
(B) Applied associate degree programs shall be approved by the Board or if such 
a program has been approved by the Commissioner on an emergency basis as 
outlined under Section 9.94 of this title (relating to Provisions for Emergency 
Approval of Associate Degree Programs), the Board may ratify or reject such 
approval as provided in that section. 
(b) Each institution wishing to revise an existing certificate or applied 
associate degree program must complete the procedures as outlined in the Board-
approved Guidelines for Instructional Programs in Workforce Education.
(c) Administrative Officers. All programs must be under the direction of an 
administrator having appropriate authority to ensure that quality is maintained 
and that programs are conducted in compliance with all applicable laws and 
rules. Administrative officers must possess credentials, work experience, and/or 
demonstrated competence appropriate to their areas of responsibility as 
specified by the Southern Association of Colleges and Schools Commission on 
Colleges. 
(d) Faculty and Staff. Faculty and staff must be approved by the postsecondary 
institution. Each individual must meet the minimum qualifications established by 
the Board. 

sec.9.94. Provisions for Emergency Approval of Associate Degree Programs. 
Due to local needs of a postsecondary institution that may arise between 
Coordinating Board meetings, the following provisions are made for emergency 
approval of associate degree programs: 
(1) The Board delegates to the Commissioner the authority to approve workforce 
education applied associate degree program requests between scheduled meetings 
of the Board in cases where delay would seriously impair the ability of the 
institution to offer a program for which there is an immediate need. 
(2) The Board shall retain the authority to reject approval of a program that 
has been approved under these emergency provisions. If the Board rejects a 
program, the institution shall have one year to phase out the program or to make 
necessary revisions acceptable to the Board.

sec.9.95.Action and Order of the Board.
(a) Board action on the request for approval of a new applied associate degree 
program in a postsecondary institution shall be taken at the next quarterly 
Board meeting. 
(b) A resolution shall be entered in the minutes of the Board and conveyed in 
writing by the Commissioner to the governing board or the chief executive 
officer of the postsecondary institution. 

sec.9.96. Reporting to the Board.
(a) Contact hours for courses in approved workforce education certificate and 
applied associate degree programs from public postsecondary institutions must be 
determined and reported in compliance with Board rules and policy as outlined in 
the Workforce Education Course Manual and state law. 
(b) Contact hours for courses in approved academic certificate and associate 
degree programs at public postsecondary institutions must be determined and 
reported in compliance with Board policy as outlined in the Academic Course 
Guide Manual and state law.

sec.9.97. Disapproval of Programs; Noncompliance.
No funds appropriated to any public postsecondary institution shall be expended 
for any program which has not been approved 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 May 20, 1998.
TRD-9808312
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER F.Workforce Continuing Education Courses
19 TAC sec.sec.9.111-9.117
The Texas Higher Education Coordinating Board proposes new sec.sec.9.111 - 
9.117, concerning Program Development in Public Community/Junior College 
Districts and Technical Colleges (Workforce Continuing Education Courses). The 
proposed new rules are as a result of a complete review, rewriting, and 
restructuring of current Board rules affecting public two- year degree granting 
institutions. The proposed new rules will provide uniformity and consistency and 
the proposed restructuring of the rules will repeal rules for which the Board no 
longer has statutory authority and propose new rules to address legislation not 
previously included in Board rules. The proposed new rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Program Development in Public 
Community/Junior College Districts and Technical Colleges (Workforce Continuing 
Education Courses). 
There were no other sections or articles affected by the proposed amendments.

sec.9.111.Purpose.
This subchapter provides rules and procedures for the review and approval of 
workforce continuing education courses as taught by public community/junior or 
technical colleges. 

sec.9.112. Authority. 
The Texas Education Code, Sections 54.051(n), 54.545, 61.051(j), 61.053, 61.054, 
61.060, 61.061, 61.062, 130.001(b)(3)-(4), 130.003(e)(4), and 130.006, authorize 
the Coordinating Board to adopt policies, enact regulations, and establish rules 
for public community/junior and technical colleges for the coordination of 
workforce continuing education courses eligible for state appropriations. 

sec.9.113. General Provisions.
(a) Tuition and fees for state-funded workforce continuing education courses 
shall be assessed according to policies established by the Board. The governing 
board of the institution shall establish tuition and fees for workforce 
continuing education courses not eligible for state reimbursement.
(b) Workforce continuing education courses shall be approved for five years from 
the beginning of the quarter following the approval date. The termination date 
for each course shall be reflected on the approved course list. Any course not 
offered within a five year period shall be deleted from the approved course 
list. 
(c) Any workforce continuing education program meeting or exceeding 360 contact 
hours shall be subject to all of the requirements for work force education 
programs for state appropriations as outlined in Chapter 9, Subchapter E of this 
title (relating to New Certificate and Associate Degree Programs). 
(d) Any workforce continuing education program meeting or exceeding 780 contact 
hours in length must result in the award of semester or quarter credit hours and 
be applicable to a certificate and an applied associate degree program. 

sec.9.114. Application and Approval Procedures for Workforce Continuing 
Education Courses.
(a) Any workforce continuing education course listed in the Continuing Education 
Guidelines and Common Course Manual (CCM) or the Workforce Education Course 
Manual (WECM) may be offered by any public community/junior or technical college 
without prior approval by the Board. Courses in the current CCM or WECM are 
valid until revised or deleted by subsequent updates of the CCM or WECM. 
(b) All workforce continuing education courses shall meet the guidelines 
outlined in the Guidelines for Instructional Programs in Workforce Education as 
approved by the Board, the Continuing Education Guidelines and Common Course 
Manual, and the Workforce Education Course Manual. 

sec.9.115. Funding. 
(a) Contact hours reported for workforce education courses which result in 
continuing education units (CEUs) shall be eligible for formula funding. 
(b) All workforce continuing education courses shall include no fewer than seven 
(7) contact hours of instruction for institutions to receive state funding. 

sec.9.116. Reporting to the Board.
Contact hours for workforce continuing education courses from public 
community/junior and technical colleges must be determined and reported in 
compliance with Board policy as outlined in the Guidelines for Instructional 
Programs in Workforce Education as approved by the Board, the Continuing 
Education Guidelines and Common Course Manual, Workforce Education Course 
Manual, and state law. 

sec.9.117. Disapproval of Courses; Noncompliance.
No funds appropriated to any public community/junior college or technical 
college may be expended for any workforce continuing education course which has 
not been approved by the Board staff. 
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 May 20, 1998.
TRD-9808313
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Public Junior Colleges
SUBCHAPTER F.Approval of Partnership Agreements Between Community/Junior
Colleges and Upper-Level Universities or Centers
19 TAC sec.sec.9.131-9.137
(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 
sec.sec.9.131-9.137, concerning Approval of Partnership Agreements Between 
Community/Junior Colleges and Upper-Level Universities or Centers. 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 
proposed repeal of the rules will provide uniformity and consistency and the 
proposed restructuring of the rules will repeal rules for which the Board no 
longer has statutory authority and propose new rules to address legislation not 
previously included in Board rules. The proposed repeal of the rules 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 repeal of the rules 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, sec.sec.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 of 
Partnership Agreements Between Community/Junior Colleges and Upper-Level 
Universities or Centers. 
There were no other sections or articles affected by the proposed amendments.
sec.9.131. Purpose. 
sec.9.132.Advisory Committee.
sec.9.133.Approval by Coordinating Board.
sec.9.134.Criteria for Approval of Partnership Agreements.
sec.9.135.Prohibitions.
sec.9.136.State Funding. 
sec.9.137.Continuing Responsibilities.
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 May 20, 1998.
TRD-9808291
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Program Development in Public Community/Junior College Districts and 
Technical Colleges
SUBCHAPTER G.Contractual Agreements
19 TAC sec.sec.9.121-9.128
The Texas Higher Education Coordinating Board proposes new sec.sec.9.121-9.128, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Contractual Agreements). The proposed new rules are as a 
result of a complete review, rewriting, and restructuring of current Board rules 
affecting public two-year degree granting institutions. The proposed new rules 
will provide uniformity and consistency and the proposed restructuring of the 
rules will repeal rules for which the Board no longer has statutory authority 
and propose new rules to address legislation not previously included in Board 
rules. The proposed new rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Program Development in Public 
Community/Junior College Districts and Technical Colleges (Contractual 
Agreements). 
There were no other sections or articles affected by the proposed amendments.

sec.9.121. Purpose.
This subchapter shall provide rules and regulations to enable public 
community/junior colleges and technical colleges to enter into contractual 
agreements with other institutions of higher education or non-SACS/COC-
accredited organizations (which include but are not limited to public secondary 
schools and business and industry) to improve the articulation, quality, and 
efficiency of educational programs and services. 

sec.9.122.Authority.
The Texas Education Code, Subchapter N of Chapter 51, and Sections 51.923, 
61.051(o), 61.053, 61.054, 61.055, 61.060, 61.061, 61.062, 61.064, 61.067, 
130.001(b)(3)-(4), 130.006, 130.008, and 130.090, authorize the Coordinating 
Board to adopt policies, enact regulations, and establish rules for the public 
community/junior and technical colleges to enter into agreements with other 
entities to provide for appropriate educational services. 

sec.9.123.General Provisions.
(a) The Board recognizes that to prepare a literate and trained workforce to be 
available for economic stability and development requires a true joint 
partnership between private and public sectors. Accordingly, the Board 
encourages contractual agreements between institutions of higher education, 
business, industry, and other agencies to forge a common partnership of joint 
planning, facilities, laboratories, delivery systems, and evaluation efforts. 
The Board policy intends to provide institutional incentives for colleges to 
work with business, industry, and government in the development of an educated 
workforce for Texas. 
(b) Each community and technical college may classify workforce continuing 
education and other courses as earning semester/quarter credit hours or 
continuing education units (CEUs). Contact hours reported for workforce 
education courses which result in either credit hours or CEUs shall be eligible 
for formula funding. A course or program that meets or exceeds 360 hours in 
length must be approved as a technical certificate program except by special 
justification and approval by Board staff. A course or program that meets or 
exceeds 780 hours in length must result in the award of appropriate 
semester/quarter credit hours and be applicable to a certificate and an applied 
associate degree program. 
(c) General enrollment or contract training courses that are non-credit and do 
not result in the award of CEUs are not eligible for any state apportionment 
funding, but a community and technical college is free to market such non-credit 
or non-CEU training to business, industry, and government at whatever rate can 
be negotiated with the contracting organization. Exceptions regarding programs 
serving incarcerated students must be submitted to the Coordinating Board staff 
for review and approval. 
(d) Courses earning CEUs shall be subject to the guidelines published by the 
Southern Association of Colleges and Schools Commission on Colleges as a 
condition of eligibility for formula funding. 
(e) All student enrollments for semester/quarter hour credit are subject to the 
provisions of the Texas Academic Skills Program as applicable.
(f) Public community/junior or technical colleges providing courses to 
organizations for which semester/quarter hour credits or CEUs are earned must 
charge out-of-state tuition to non-resident students who are brought from out-
of-state for such contract courses. 

sec. 9.124. Contractual Agreements for Instruction with Non-SACS/COC-Accredited 
Organizations Other than Public Secondary Schools. 
(a) General Policy Guidelines. 
(1) Contractual agreements for instruction by public community/junior or 
technical colleges with non-SACS/COC accredited organizations must comply with 
all current guidelines of the Southern Association of Colleges and Schools 
Commission on Colleges. 
(2) Courses and programs offered under contractual agreements must be consistent 
with the educational purpose, mission, and goals of the institution. 
(3) Courses and programs offered and requested for state reimbursement must 
remain under the sole and direct control of the sponsoring public 
community/junior or technical college. 
(b) Regulations. 
(1) Board Approval. 
(A) All programs and courses must be approved through the established procedures 
of the Board. 
(B) Requirements. Courses offered must remain under the sole and direct control 
of the sponsoring public community/junior or technical college which exercises 
ultimate and continuing responsibility for the performance of the functions 
reflected in the contract. Instructors of courses must meet qualifications as 
stipulated by the public community/junior or technical college. The public 
community/junior or technical college must employ at least one full-time faculty 
member per degree program and specify in the contract the institutional 
procedures by which the contracted courses or programs meet the standards of 
regular programs as disclosed fully in the publications of the institution, 
specifically including the following: 
(i) recruitment and counseling of students; 
(ii) admission of students to courses and/or to the sponsoring institution where 
certificate and associate degree programs are pursued; 
(iii) development and evaluation of the curriculum; 
(iv) evaluation of student progress; 
(v) record keeping; 
(vi) tuition and/or fee charges, receipts and disbursement of funds, and refund 
policy; 
(vii) appointment, supervision, and evaluation of faculty; and 
(viii) instruction and learning resources. 
(2) The Contractual Agreement. 
(A) The contractual agreement must be executed by designated officers of the 
public community/junior or technical college and their counterparts in the 
contracting organization. 
(B) The contractual agreement shall establish a definite understanding between 
the public community/junior or technical college and the contracting agency to 
include each of the items required by this subsection. 
(C) The agreement shall specify the work to be performed, the period of the 
agreement, and the conditions under which any renewal or renegotiation must 
occur. 

sec.9.125. Contractual Agreements for Instruction with Public Secondary Schools.
(a) General Policy Guidelines. 
(1) Public community/junior and technical colleges may contract to provide 
instruction for public secondary schools. 
(2) Provision of instruction for public secondary schools by public 
community/junior and technical colleges must be in accordance with rules and 
guidelines established by the State Board of Education. 
(3) Instruction provided under a contractual agreement under this section may 
include only coursework necessary for students to complete high school. It does 
not apply to early admission programs for high school students entering college. 
(b) Regulations. 
(1) Instructors in contract programs with public secondary schools must meet 
qualifications required by the public community/junior or technical college as 
well as the minimum guidelines approved by the State Board of Education. 
(2) An agreement between the public community/junior or technical college and 
the public secondary school must be approved by both governing boards. 
(3) Funding for this type of instruction must flow to the public secondary 
school as the contracting agency. An agreed cost for instruction must be 
negotiated between the public community/junior or technical college and the 
public secondary school. 

sec.9.126.Contractual Agreements for Instruction with Other SACS/COC-Accredited 
Institutions of Higher Education.
(a) Public community/junior and technical colleges may enter into cooperative 
undertakings or contractual agreements with other Texas' public community/junior 
or technical colleges as permitted by law. 
(b) Public community/junior and technical colleges may enter into cooperative 
undertakings or contractual agreements with other Texas public institutions of 
higher education as part of a multi-institution teaching center as outlined 
under Chapter 5, Subchapter L, Section 5.245 of this title (relating to Multi-
Institution Teaching Centers). 
(c) Public community/junior and technical colleges may enter into cooperative 
undertakings or contractual agreements with SACS/COC-accredited independent 
institutions of higher education as part of a multi-institution teaching center 
as outlined under Chapter 5, Subchapter L, Section 5.245 of this title (relating 
to Multi-Institution Teaching Centers) or other partnership agreements on a 
shared-cost basis as permitted by law.

sec.9.127. Reporting to the Board.
Contact hours for contract instruction eligible for state reimbursement must be 
determined and reported in compliance with state law and Board rules and policy. 

sec.9.128. Disapproval of Courses; Noncompliance.
No funds appropriated to any public community/junior college district or 
technical college may be expended for any course taught under a contractual 
agreement which has not been approved 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 May 20, 1998.
TRD-9808314
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Public Junior Colleges
SUBCHAPTER G.Approval of Postsecondary Technical and Vocational Programs for 
State Appropriations to Community and Junior Colleges and Texas State Technical 
College
19 TAC sec.sec.9.151-9.156
(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 
sec.sec.9.151-9.156, concerning Approval of Postsecondary Technical and 
Vocational Programs for State Appropriations to Community & Junior Colleges & 
Texas State Technical College. 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 proposed repeal of the rules 
will provide uniformity and consistency and the proposed restructuring of the 
rules will repeal rules for which the Board no longer has statutory authority 
and propose new rules to address legislation not previously included in Board 
rules. The proposed repeal of the rules 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 repeal of the rules 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, sec.sec.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 of 
Postsecondary Technical and Vocational Programs for State Appropriations to 
Community & Junior Colleges & Texas State Technical College. 
There were no other sections or articles affected by the proposed amendments.
sec.9.151. Purpose.
sec.9.152.Authority.
sec.9.153.Definitions.
sec.9.154.Procedures.
sec.9.155.Provisions for Emergency Approval and Ratification.
sec.9.156. Evaluation and Sunset 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 May 20, 1998.
TRD-9808295
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Program Development in Public Community/Junior
College Districts and Technical Colleges
SUBCHAPTER I.Distance Education
19 TAC sec.sec.9.161-9.163
The Texas Higher Education Coordinating Board proposes new sec.sec.9.161-9.163, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Distance Education). The proposed new rules are as a result 
of a complete review, rewriting, and restructuring of current Board rules 
affecting public two-year degree granting institutions. The proposed new rules 
will provide uniformity and consistency and the proposed restructuring of the 
rules will repeal rules for which the Board no longer has statutory authority 
and propose new rules to address legislation not previously included in Board 
rules. The proposed new rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Program Development in Public 
Community/Junior College Districts and Technical Colleges (Distance Education). 
There were no other sections or articles affected by the proposed amendments.

sec.9.161. Purpose.
This subchapter provides rules and regulations for public community/junior 
colleges for the delivery of courses and programs via instructional 
telecommunications or to locations out-of- district, out-of-state, and out-of-
country.

sec.9.162. Authority.
The Texas Education Code, Sections 61.051(j), 61.053, 61.054, 61.060, 61.061, 
61.062, 130.001(b)(3)-(4), and 130.086(d), authorize the Coordinating Board to 
adopt policies, enact regulations, and establish rules for public 
community/junior colleges for the delivery of courses and programs out-of-
district, out-of-state, and out-of-country.

sec.9.163.Courses and Programs Offered through Distance Education. 
(a) Chapter 5, Subchapter H of this title (relating to Approval of Distance 
Learning for Public Colleges and Universities) are hereby applicable to public 
community/junior colleges. These sections provide particular requirements and 
procedures for the offering of courses and programs by public community/junior 
colleges at out-of-district, out-of-state, and out-of-country locations. 
(b) Courses and programs not eligible for state reimbursement and offered in 
out-of-district, out-of-state, and out-of-country locations shall meet the same 
rules, regulations, and guidelines established by the Board for courses and 
programs eligible for state reimbursement.
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 May 20, 1998.
TRD-9808315
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Public Junior Colleges
SUBCHAPTER H.Postsecondary Apprenticeship Training Programs
19 TAC sec.sec.9.171-9.174
(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 
sec.sec.9.171-9.174, concerning Postsecondary Apprenticeship Training Programs. 
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 proposed repeal of the rules will provide uniformity and 
consistency and the proposed restructuring of the rules will repeal rules for 
which the Board no longer has statutory authority and propose new rules to 
address legislation not previously included in Board rules. The proposed repeal 
of the rules 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 repeal of the rules 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, sec.sec.61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Postsecondary 
Apprenticeship Training Programs. 
There were no other sections or articles affected by the proposed amendments.
sec.9.171.Definitions.
sec.9.172.Approval. 
sec.9.173.Procedures.
sec.9.174.Funding
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 May 20, 1998.
TRD-9808296
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER I.Contractual Agreements
19 TAC sec.sec.9.191-9.194
(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 
sec.sec.9.191-9.194, concerning Contractual Agreements. 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 proposed 
repeal of the rules will provide uniformity and consistency and the proposed 
restructuring of the rules will repeal rules for which the Board no longer has 
statutory authority and propose new rules to address legislation not previously 
included in Board rules. The proposed repeal of the rules 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 repeal of the rules 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, sec.sec.61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Contractual 
Agreements. 
There were no other sections or articles affected by the proposed amendments.
sec.9.191.Definitions.
sec.9.192.Contractual Agreements for Instruction with Non-Regionally Accredited 
Organizations.
sec.9.193.Contractual Agreements for Instruction Provided by a Postsecondary 
Institution for Public Secondary Schools.
sec.9.194. Continuing Education.
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 May 20, 1998.
TRD-9808297
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER J.Approval of Continuing Education Courses for State Appropriations 
to Public Community Colleges and Texas State Technical College
19 TAC sec.sec.9.211-9.216
(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 
sec.sec.9.211-9.216, concerning Approval of Continuing Education Courses for 
State Appropriations to Public Community Colleges and Texas State Technical 
College. 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 proposed repeal of the rules will provide 
uniformity and consistency and the proposed restructuring of the rules will 
repeal rules for which the Board no longer has statutory authority and propose 
new rules to address legislation not previously included in Board rules. The 
proposed repeal of the rules 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 repeal of the rules 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, sec.sec.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 of 
Continuing Education Courses for State Appropriations to Public Community 
Colleges and Texas State Technical College. 
There were no other sections or articles affected by the proposed amendments.
sec.9.211. Purpose. 
sec.9.212.Authority. 
sec.9.213. Definitions. 
sec.9.214. Approval. 
sec.9.215.Procedures.
sec.9.216. Reporting.
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 May 20, 1998.
TRD-9808298
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER L.Approval of Credit Courses and Programs not Receiving State Funds 
Offered at Out-of-State and Foreign Locations
19 TAC sec.sec.9.251-9.255
(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 
sec.sec.9.251 - 9.255, concerning Approval of Credit Courses and Programs not 
Receiving State Funds Offered at Out-of-State and Foreign Locations. 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 proposed repeal of the rules will provide uniformity and consistency and the 
proposed restructuring of the rules will repeal rules for which the Board no 
longer has statutory authority and propose new rules to address legislation not 
previously included in Board rules. The proposed repeal of the rules 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 repeal of the rules 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, sec.sec.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 of 
Credit Courses and Programs not Receiving State Funds Offered at Out-of-State 
and Foreign Locations. 
There were no other sections or articles affected by the proposed amendments.
sec.9.251. Purpose.
sec.9.252. Authority.
sec.9.253. Criteria and Procedures.
sec.9.254. Evaluation and Auditing.
sec.9.255.Reports.
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 May 20, 1998.
TRD-9808299
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER M.Integrated Vocational-Technical Education and Training Delivery 
System for a Quality Work Force
19 TAC sec.sec.9.270-9.283
(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 
sec.sec.9.270-9.283, concerning Integrated Vocational-Technical Education and 
Training Delivery System for a Quality Work Force. 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 proposed 
repeal of the rules will provide uniformity and consistency and the proposed 
restructuring of the rules will repeal rules for which the Board no longer has 
statutory authority and propose new rules to address legislation not previously 
included in Board rules. The proposed repeal of the rules 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 repeal of the rules 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, sec.sec.61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Integrated 
Vocational-Technical Education and Training Delivery System for a Quality Work 
Force. 
There were no other sections or articles affected by the proposed amendments.
sec.9.270. Statutory Law and Background.
sec. 9.271.Purpose.
sec.9.272.Regional Boundaries.
sec.9.273.Partnership.
sec.9.274.Quality Work Force Planning Committees.
sec.9.275.Establishment of Committees.
sec.9.276.Regional Labor Market Information System.
sec.9.277.Regional Program and Economic Development Inventories.
sec.9.278.Regional Inventory of Vocational-Technical Education and Training 
Programs for Targeted Occupations. 
sec.9.279.Service Delivery Plan.
sec.9.280.Committee Membership.
sec.9.281.Committee Bylaws.
sec.9.282. Executive/Steering Committee.
sec.9.283. Tri-agency Partnership.
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 May 20, 1998.
TRD-9808300
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 11.Texas State Technical College
SUBCHAPTER A.Purpose and Authority
19 TAC sec.sec.11.1-11.6
(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 
sec.sec.11.1-11.6, concerning Purpose and Authority. 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 proposed 
repeal of the rules 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 repeal of the rules 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 repeal of the rules 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, sec.sec.61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Purpose and 
Authority. 
There were no other sections or articles affected by the proposed amendments.
sec.11.1. Governance.
sec.11.2.Role and Mission. 
sec.11.3.Campuses.
sec.11.4.Extension Centers.
sec.11.5.Other Instructional Activities.
sec.11.6.Funding.
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 May 20, 1998.
TRD-9808304
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 11.Texas State Technical College System
SUBCHAPTER A.Purpose, Authority, and Defintions
19 TAC sec.sec.11.1-11.3
The Texas Higher Education Coordinating Board proposes new sec.sec.11.1-11.3, 
concerning Texas State Technical College System (Purpose, Authority and 
Definitions). The proposed new rules are as a result of a complete review, 
rewriting, and restructuring of current Board rules affecting public two-year 
degree granting institutions. The proposed new rules will provide uniformity and 
consistency and the proposed restructuring of the rules will repeal rules for 
which the Board no longer has statutory authority and propose new rules to 
address legislation not previously included in Board rules. The proposed new 
rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Texas State Technical College 
System (Purpose, Authority, and Definitions). 
There were no other sections or articles affected by the proposed amendments.

sec.11.1. Purpose. 
The purpose of this chapter is to prescribe rules and regulations for the Texas 
State Technical College System in the general operation of its campuses, 
extension facilities, and programs. 

sec.11.2. Authority.
Texas Education Code, Sections 61.051, 61.053, 61.056, 61.058, 61.0583, 135.01, 
135.04, 135.02, and 135.06, authorize the Coordinating Board to adopt policies, 
enact regulations, and establish rules for the Texas State Technical College 
System relating to the review of its role and mission statement, new program 
approval, approval and operation of extension centers, approval of land 
acceptance or acquisition, and the audit of its facilities. 

sec.11.3.Definitions.
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
(1) Board or coordinating board The Texas Higher Education Coordinating Board. 
(2) Campus A residential unit of the Texas State Technical College System that 
grants certificate and associate of applied science degrees.
(3) Commissioner of higher education or commissioner The chief executive officer 
of the Texas Higher Education Coordinating Board.
(4) Governing board The board of regents of the Texas State Technical College 
System. 
(5) Extension center A site, operating under the administration of a campus, 
that has an extension program. 
(6) Extension program Credit and non-credit instruction in technical and 
vocational education offered at an extension center. 
(7) System The Texas State Technical College System.
(8) Technical courses or programs Workforce education courses or programs for 
which semester/quarter credit hours are awarded. 
(9) Vocational courses or programs Workforce education courses or programs for 
which continuing education units (CEUs) are awarded.
(10) Workforce education Technical courses and programs for which 
semester/quarter credit hours are awarded, and vocational courses and programs 
for which continuing education units are awarded. Workforce education courses 
and programs prepare students for immediate employment or job upgrade within 
specific occupational categories.
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 May 20, 1998.
TRD-9808316
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 11.Texas State Technical College
SUBCHAPTER B.Basic Standards
19 TAC sec.sec.11.21-11.27
The Texas Higher Education Coordinating Board proposes the repeal of 
sec.sec.11.21-11.27, concerning Basic Standards. 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 proposed 
repeal of the rules 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 repeal of the rules 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 repeal of the rules 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, sec.sec.61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Basic Standards. 
There were no other sections or articles affected by the proposed amendments.
sec.11.21.General Provisions. 
sec.11.22. Approval of Courses and Programs.
sec.11.23.Admission.
sec.11.24.Qualification and Professional Growth of Faculty.
sec.11.25.Plant and General Facilities.
sec.11.26. Student Activities and Services. 
sec.11.27. General Character of the 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 May 20, 1998.
TRD-9808305
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 11.Texas State Technical College System
SUBCHAPTER B.General Provisions
19 TAC sec.sec.11.21-11.30
The Texas Higher Education Coordinating Board proposes new sec.sec.11.21-11.30, 
concerning Texas State Technical College System (General Provisions). The 
proposed new rules are as a result of a complete review, rewriting, and 
restructuring of current Board rules affecting public two-year degree granting 
institutions. The proposed new rules will provide uniformity and consistency and 
the proposed restructuring of the rules will repeal rules for which the Board no 
longer has statutory authority and propose new rules to address legislation not 
previously included in Board rules. The proposed new rules 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 new rules 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 rules are proposed under Texas Education Code, sec.sec.61.061, 61.062, 
130.001, and 130.087, which provides the Texas Higher Education Coordinating 
Board with the authority to adopt rules concerning Texas State Technical College 
System (General Provisions). 
There were no other sections or articles affected by the proposed amendments.

sec.11.21. Role and Mission.
(a) Texas Education Code, Section 135.01, creates the Texas State Technical 
College System and provides that it shall be a coeducational two-year 
institution of higher education offering courses of study in technical-
vocational education for which there is demand within the State of Texas. 
(b) Texas State Technical College System shall contribute to the educational and 
economic development of the State of Texas by offering occupationally oriented 
programs with supporting academic course work, emphasizing highly specialized 
advanced and emerging technical and vocational areas for certificates or 
associate degrees. The Texas State Technical College System is authorized to 
serve the State of Texas through excellence in instruction, public service, 
faculty and manpower research, and economic development. The system's economic 
development efforts to improve the competitiveness of Texas business and 
industry include exemplary centers of excellence in technical program clusters 
on the system's campuses and support of educational research commercialization 
initiatives. Through close collaboration with business, industry, governmental 
agencies, and communities, including public and private secondary and 
postsecondary educational institutions, the system shall facilitate and deliver 
an articulated and responsive technical education system.
(c) In developing and offering highly specialized technical programs with 
related supportive coursework, primary consideration shall be placed on 
industrial and technological manpower needs of the state. The emphasis of each 
Texas State Technical College System campus shall be on advanced or emerging 
technical programs not commonly offered by public junior colleges.
(d) Role and mission statements are subject to the provisions of Chapter 9, 
Subchapter C of this title (relating to Purpose, Role, and Mission).

sec.11.22. Establishing Additional Campuses.
(a) The Board shall review any proposed legislation establishing an additional 
Texas State Technical College campus. The review shall consider the state's need 
for the new campus. The Board shall report its findings to the Governor and the 
Legislature. 
(b) The Board shall make a recommendation regarding the need for a new campus. 
The recommendation shall require a favorable vote of at least two-thirds of the 
members of the Board. 
(c) A favorable recommendation by the Board is not required for the Legislature 
to establish a new campus. 

sec.11.23.Approval and Operation of Extension Programs and Centers.
(a) The system may establish an extension program in accordance with Texas 
Education Code, Section 135.06, and by approval of the Board.
(b) The system may operate an extension center in accordance with Texas 
Education Code, Section 135.02, and under continuing review by the Board as 
outlined in Chapter 10 of this title (relating to Institutional Effectiveness in 
Public Community/Junior College Districts and Technical Colleges).

sec.11.24. Approval of Land Acceptance or Acquisition. 
The governing board may accept, acquire by purchase, lease, sell, transfer, or 
exchange land in the name of the State of Texas and make improvement to 
facilities in any of the counties in which a campus or extension center is 
located according to procedures outlined in Chapter 17, Subchapter C of this 
title (relating to Requesting Coordinating Board Endorsement of Real Property 
Aquisitions).

sec.11.25. Audit of Facilities.
The Board shall periodically conduct a comprehensive audit of all educational 
and general facilities on the campuses of the Texas State Technical College 
System as outlined in Chapter 17, Subchapter D of this title (relating to Audits 
of Educational and General Facilities).

sec.11.26.TSTC-Marshall Prohibitions.
The Texas State Technical College extension center in Marshall shall not offer 
general academic or technical courses or programs that duplicate the general 
academic or technical courses and programs offered by Panola College, Northeast 
Texas Community College, and Kilgore College. The Board shall determine whether 
proposed courses and programs are duplicative. 

sec.11.27. New Program and Course Approval.
(a) Courses and programs wholly or partially financed from state funds are 
subject to the prior approval and continuing review of the Board. 
(b) Before any new course or program may be offered by a campus or extension 
center within the taxing district of a public community/junior college, it must 
be established that the public community/junior college is not capable of 
offering or chooses not to offer the program. The campus or extension center 
must present evidence to the Board that the public community/junior college is 
not capable of offering the program. After it has demonstrated to the Board that 
the need for the program exists and that the program is not locally available, 
the campus or extension center may offer the program, provided approval is 
secured from the Board. Approval of technical and vocational programs under this 
section does not apply to McLennan, Cameron, and Potter counties. 
(c) Where a local government, business, or industry located in a county or a 
portion of a county that is not operating a public community/junior college 
district requests that the campus or extension center offer a program, the 
campus or extension center must request approval from the Board to offer the 
program. 
(d) Approval of any courses or programs offered at a campus or extension center 
under subsections (a), (b), and (c) of this section must be requested from the 
Board according to procedures prescribed in Chapter 9, Subchapter E of this 
title (relating to New Certificate and Associate Degree Programs), and Chapter 
9, Subchapter F of this title (relating to Workforce Continuing Education 
Courses). 
(e) Partnership agreements between any Texas State Technical College and public 
or independent institutions of higher education are permissible but are subject 
to the provisions of Chapter 9, Subchapter G of this title (relating to 
Contractual Agreements).

sec.11.28.Other Provisions Related to the System.
The Texas State Technical College System is subject to additional provisions of 
this title as prescribed in Chapter 9, Subchapters B, C, H, and I of this title 
(relating to Program Development in Public Community/Junior College Districts 
and Technical Colleges). 

sec.11.29. Action and Order of the Board.
(a) Board action on the approval of additional campuses or extension centers, 
acquisition of land, or new program requests shall be taken at the quarterly 
Board meeting after the request has been submitted. 
(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 Texas State Technical 
College System. 

sec.11.30. Funding. 
(a) The Board shall develop formulas by which administration, instruction, and 
physical plant operations and utilities are supported for each campus and 
extension program created prior to September 1, 1991.
(b) The Board shall develop formulas by which administration and instruction are 
supported for each extension program created after September 1, 1991.
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 May 20, 1998.
TRD-9808328
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

CHAPTER 11.Texas State Technical College
SUBCHAPTER C.Operational Provisions
19 TAC sec.sec.11.41-11.45, 11.47-11.55
(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 
sec.sec.11.41-11.45, 11.47-11.55, concerning Operational Provisions. 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 proposed repeal of the rules 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 repeal of the 
rules 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 repeal of the rules 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, sec.sec.61.061, 
61.062, 130.001, and 130.087, which provides the Texas Higher Education 
Coordinating Board with the authority to adopt rules concerning Operational 
Provisions. 
There were no other sections or articles affected by the proposed amendments.
sec.11.41.General Provisions.
sec.11.42.Organization. 
sec.11.43.Eligibility of Students.
sec.11.44.Instruction.
sec.11.45.Curriculum Design.
sec.11.47. Military Bases.
sec.11.48.Research and Studies.
sec.11.49.Enrollment Reporting.
sec.11.50.Postsecondary Technical-Vocational Program Approval.
sec.11.51.Continuing Education Course Approval.
sec.11.52.Apprenticeship Programs.
sec.11.53.Contractual Agreements.
sec.11.54. Off-Campus Instructional Activities.
sec.11.55. New Plant Start-Up and Plant Expansion Training Programs.
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 May 20, 1998.
TRD-9808306
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: July 17, 1998
For further information, please call: (512) 483-6162

PART II. Texas Education Agency
CHAPTER 61.School Districts
SUBCHAPTER AA.Commissioner's Rules
<nl>Division 2<ol>. School Finance
19 TAC sec.61.1011
The Texas Education Agency (TEA) proposes new sec.61.1011, concerning Public 
Education Grant (PEG) supplemental payments. 
The Texas Education Code (TEC), sec.29.203(b), as added by House Bill 318, 75th 
Texas Legislature, 1997, directs the commissioner to establish rules for the 
calculation of additional state aid for certain school districts that educate 
students under the PEG program. 
The PEG program was created by Senate Bill 1, 74th Texas Legislature, 1995, and 
allows students assigned to certain campuses to attend school in a district 
other than that of the student's residence. Originally, students were eligible 
if they were assigned to a campus that had been rated low-performing in any 
three of the preceding years, or if they were assigned to a campus that, in all 
three previous years, had at least 50 percent of the students not performing 
satisfactorily on state assessment instruments. House Bill 318, 75th Texas 
Legislature, 1997, amended the eligibility criteria by allowing students to 
attend school in another district if they were assigned to a campus that had 
been rated low-performing in any of the three preceding years, or if they were 
assigned to a campus that, in two of the three previous years, had at least 50 
percent of the students not performing satisfactorily on state assessment 
instruments. House Bill 318, 75th Texas Legislature, 1997, also simplified the 
funding mechanism by creating an entitlement to the district educating a student 
under the PEG program equal to the adjusted basic allotment multiplied by a 
weight of 0.1. However, for certain school districts, this new funding mechanism 
will not generate the same amount of state assistance that it would for most 
school districts. House Bill 318, 75th Texas Legislature, 1997, authorizes 
additional state assistance for districts whose wealth per student is greater 
than the guaranteed wealth level (currently $210,000 per student) but less than 
the equalized wealth level (currently $280,000 per student). Districts with 
property wealth in this range are ineligible for state assistance under the 
guaranteed yield program (Tier 2). 
Joe Wisnoski, coordinator for school finance and fiscal analysis, has determined 
that for the first five-year period the sections are in effect there will be 
fiscal implications for state or local government as a result of enforcing or 
administering the section. Since there are currently few PEG students being 
served and even fewer that are being served by districts whose wealth per 
student is greater than the guaranteed wealth level but less than the equalized 
wealth level, it is anticipated that the fiscal impact to the state will be 
minimal. 
Mr. Wisnoski and Criss Cloudt, associate commissioner for policy planning and 
research, have determined that for each year of the first five years the section 
is in effect the public benefit anticipated as a result of enforcing the section 
will be a consistent methodology for determining funding for PEG students in 
certain school districts. The methodology used will result in comparable state 
assistance for educating PEG students. There will not be an 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 Criss Cloudt, Policy Planning and 
Research, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701, or 
faxed to (512) 475-3499. Comments may also be submitted electronically at 
http://www.tea.state.tx.us/rules/commissioner. All requests for a public hearing 
on the proposed sections submitted under the Administrative Procedure Act must 
be received by the commissioner of education not more than 15 calendar days 
after notice of a proposed change in the sections has been published in the 
Texas Register. 
The new section is proposed under Texas Education Code, sec.29.203(b), as added 
by House Bill 318, 75th Texas Legislature, 1997, which authorizes the 
commissioner of education to establish rules for the calculation of additional 
state aid for certain school districts that educate students under the PEG 
program. 
The proposed new section implements Texas Education Code, sec.29.203(b), as 
added by House Bill 318, 75th Texas Legislature, 1997.

sec.61.1011.Public Education Grant Supplemental Payments.
(a) Definitions. The following phrases, when used in the implementation of Texas 
Education Code, sec.29.203(b), or in this section, shall have the following 
meaning, unless the context clearly indicates otherwise. 
(1) Cost to the district of providing services - The Foundation School Program 
cost per student, including the equalized state and local share of the 
guaranteed yield allotment at the district's tax effort for the applicable 
school year, as limited by Texas Education Code, sec.42.253(e).
(2) Net additional students - The number of students accepted by a district 
under the public education grant program minus the number of that district's 
resident students who are educated in other districts under the public education 
grant program. For purposes of this section, the number of net additional 
students cannot be less than zero. 
(b) Computation methodology. A school district with property wealth per student 
greater than the guaranteed wealth level but less than the equalized wealth 
level is entitled to a supplemental payment for the number of net additional 
students educated under the public education grant program. The amount of the 
supplemental payment shall be computed as the guaranteed level multiplied by the 
district enrichment and facilities tax rate as specified in Texas Education 
Code, sec.42.302(a), as limited by Texas Education Code, sec.42.253(e), 
multiplied by the number of net additional students. 
(c) Payment method. The supplemental payment shall be made to the district in a 
lump sum in the subsequent school 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 May 22, 1998.
TRD-9808425
Criss Cloudt
Associate Commissioner, Policy Planning and Research
Texas Education Agency
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-9701

CHAPTER 97.Planning and Accreditation
SUBCHAPTER BB.Memoranda of Understanding
19 TAC sec.97.1011, sec.97.1012,
The Texas Education Agency (TEA) proposes new sec.97.1011 and sec.97.1012, 
concerning memoranda of understanding. Section 97.1011 provides for a memorandum 
of understanding (MOU) with the Texas School for the Deaf related to 
accreditation and Public Education Information Management System (PEIMS) data 
reporting, authorized under Texas Education Code (TEC), sec.29.315, as added by 
Senate Bill 1918, 75th Texas Legislature, 1997. Section 97.1012 provides for a 
memorandum of understanding with the Texas School for the Blind and Visually 
Impaired related to PEIMS data reporting, authorized under TEC, sec.30.005, as 
added by Senate Bill 1919, 75th Texas Legislature, 1997. 
Proposed new 19 TAC sec.97.1011 establishes the method for developing and 
reevaluating a set of quality of learning indicators at the Texas School for the 
Deaf and the process for the TEA to conduct and report on an annual evaluation 
of the school's performance on the indicators. The new section also provides for 
the school's board to publish, discuss, and disseminate an annual report 
describing the educational performance of the school; the process for the TEA to 
assign an accreditation status to the school, to reevaluate the status on an 
annual basis, and, if necessary, to make on-site accreditation investigations; 
and the type of information the school shall be required to provide through 
PEIMS. TEA staff held a series of meetings with representatives from the Texas 
School for the Deaf to draft and refine language proposed in the MOU. 
Proposed new 19 TAC sec.97.1012 establishes the method for developing and 
reevaluating a set of quality of learning indicators at the Texas School for the 
Blind and Visually Impaired. The new section also provides for the process for 
the TEA to conduct and report on an annual evaluation of the school's 
performance on the indicators; the requirements for the school's board to 
publish, discuss, and disseminate an annual report describing the educational 
performance of the school; and the type of information the school shall be 
required to provide through PEIMS. TEA staff held a series of meetings with 
representatives from the Texas School for the Blind and Visually Impaired to 
draft and refine language proposed in the MOU. 
The proposed effective date for proposed new 19 TAC sec.97.1011 and sec.97.1012 
is September 1, 1998. 
Linda Mora, associate commissioner for accountability and school accreditation, 
has determined that for the first five-year period the sections are in effect 
there will be fiscal implications as a result of enforcing or administering the 
section. However, the effect on state government cannot be assessed at this 
time. The fiscal impact of participation in PEIMS by the Texas School for the 
Deaf and the Texas School for the Blind and Visually Impaired will need to be 
assessed as part of the feasibility studies outlined in proposed new 19 TAC 
sec.97.1011(h) and sec.97.1012(f). Also, in the event that the Texas School for 
the Deaf receives a rating of "needing on-site review," it is possible for on-
site investigations and sanctions to be applied that may have future fiscal 
implications for the school and the TEA. There are no fiscal implications for 
local government. 
Ms. Mora and Criss Cloudt, associate commissioner for policy planning and 
research, have 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 ensuring students served by the Texas School for the Deaf 
and the Texas School for the Visually Impaired and their parents and/or 
guardians will annually receive information regarding the performance of the 
schools. There will not be an effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
sections as proposed.
Comments on the proposal may be submitted to Criss Cloudt, Policy Planning and 
Research, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701.
Comments may also be submitted electronically to rules@tmail.tea.state.tx.us. 
All requests for a public hearing on the proposed sections submitted under the 
Administrative Procedure Act must be received by the commissioner of education 
not more than 15 calendar days after notice of a proposed change in the sections 
has been published in the Texas Register. 
The new sections are proposed under the Texas Education Code, sec.29.315, as 
added by Senate Bill 1918, 75th Texas Legislature, 1997, which authorizes the 
commissioner of education to adopt by rule a memorandum of understanding jointly 
developed and agreed upon by the Texas Education Agency and the Texas School for 
the Deaf; and Texas Education Code, sec.30.005, as added by Senate Bill 1919, 
75th Texas Legislature, 1997, which authorizes the commissioner of education to 
adopt by rule a memorandum of understanding jointly developed and agreed upon by 
the Texas Education Agency and the Texas School for the Blind and Visually 
Impaired. 
The new sections implement the Texas Education Code, sec.29.315 and sec.30.005.

sec.97.1011.Memorandum of Understanding between the Texas Education Agency and 
the Texas School for the Deaf.
(a) Purpose. This memorandum of understanding (MOU) is a non-financial, mutual 
agreement between the Texas School for the Deaf, hereafter referred to as "the 
School," and the Texas Education Agency, hereafter referred to as "the Agency," 
established pursuant to the Texas Education Code (TEC), sec.29.315. This MOU 
will establish: 
(1) the method for developing and reevaluating a set of indicators of the 
quality of learning at the School; 
(2) the process for the Agency to conduct and report on an annual evaluation of 
the School's performance on the indicators; 
(3) the requirements for the School's Board to publish, discuss, and disseminate 
an annual report describing the educational performance of the School; 
(4) the process for the Agency to assign an accreditation status to the School, 
to reevaluate the status on an annual basis, and, if necessary, to make on-site 
accreditation investigations; and 
(5) the type of information the School shall be required to provide through the 
Public Education Information Management System (PEIMS).
(b) Accountability compliance reviews. 
(1) The Agency shall monitor the School's compliance with federal and state laws 
and regulations related to services for special populations by conducting a 
periodic on-site review. The Agency shall determine the schedule for the review. 
(2) The Agency, with input from the School, shall develop a compliance 
monitoring instrument that itemizes compliance indicators that are the 
responsibility of the School. The instrument will be disseminated to the School 
and updated jointly as appropriate. 
(c) Indicators of quality of learning for the School. 
(1) No later than August 31, 1999, the Agency and the School shall jointly 
develop and agree upon a set of quality indicators that are appropriate to the 
characteristics of students served by the School. 
(2) Annually, the commissioner of education shall approve indicators of 
performance that measure the quality of student learning at the School. 
(3) The indicators shall include measures of academic and/or developmental 
performance as well as other measures appropriate to the characteristics of the 
student populations served. 
(4) To the extent appropriate, the indicators shall incorporate academic 
excellence indicators and alternative assessment measures required under TEC, 
Chapter 39, Subchapter B. 
(d) Annual performance evaluation. 
(1) The School's annual performance evaluation shall be based on quality 
indicators selected annually from among the set of quality indicators developed 
and jointly agreed upon by the School and the Agency to address the 
characteristics of the student groups served. 
(2) The selected quality indicators used for the annual performance evaluation 
shall measure, as appropriate, academic and/or non-academic performance on norm- 
or criterion-referenced instruments; progress in the attainment of student 
individualized education program goals and objectives; statewide criterion-
referenced assessments; completion of courses or credits; or completion of 
graduation requirements. Additional non-academic indicators may be selected that 
measure dropout rates, attendance, or other appropriate measures of student 
success. 
(3) The method for evaluating the School's annual performance shall be as 
follows. 
(A) Annually, by September 1, the School shall submit to the commissioner an 
accountability proposal. The proposal shall be developed with input from the 
School's planning and decision-making committee and shall include the following 
information to be used to determine the current year accountability rating: 
(i) quality indicators; 
(ii) performance objectives within each indicator; and 
(iii) minimum standards for determining achievement of performance objectives. 
(B) By September 15, the commissioner shall review the proposal and notify the 
School superintendent of approval, or needed modifications to obtain approval, 
of the proposed indicators and performance objectives to be used for determining 
an accountability rating. 
(C) By November 1, the commissioner shall provide notification of final approval 
of the proposal indicators and performance objectives.
(D) By July 1 following the year for which the School's performance is being 
evaluated, the School shall submit to the Agency all complete and accurate data 
necessary to document performance with respect to the approved indicators and 
performance objectives selected for rating purposes under the accountability 
system. 
(4) The schedule of activities related to the annual performance evaluation 
shall include the following activities. 
(A) During the 1998-1999 school year, the School and the Agency shall determine 
methods of evaluating student performance for determining achievement of 
performance objectives. 
(B) During the 1999-2000 school year, the School shall evaluate student 
performance in areas addressed by the quality indicators. 
(C) Beginning with the 2000-2001 school year, the Agency shall perform an annual 
performance evaluation for the School. 
(e) Accreditation status. 
(1) By September 1, the commissioner shall assign the School a rating of 
"acceptable" or "needing on- site review." 
(2) To attain a rating of "acceptable," the School shall attain all approved 
performance objectives established for each selected indicator.
(3) If the School receives a rating of "needing on-site review," the School may 
appeal the rating to the commissioner of education by October 1. The rating will 
be final by November 1. 
(4) The determination of the performance rating may include consideration of the 
effectiveness of the special education program based on the Agency's most recent 
compliance review of the school and program for special populations. 
(f) On-site investigation and sanctions. If the School does not receive an 
accreditation rating of "acceptable," the commissioner may take any of the 
following actions, listed in order of severity, to the extent the commissioner 
determines necessary: 
(1) direct the Agency to conduct an on-site investigation, in accordance with 
the provisions of TEC, sec.39.074(c)-(e), and, raise or maintain the performance 
rating as a result of the investigation; 
(2) order the preparation of a student achievement improvement plan that 
addresses each quality indicator for which the School's performance is 
unacceptable, the submission of the plan to the commissioner for approval, and 
implementation of the plan; or 
(3) appoint a special campus intervention team, the criteria for membership of 
which shall be mutually agreed upon by the Agency and the School, the costs for 
which shall be paid for by the School, to: 
(A) conduct a comprehensive on-site evaluation of the School to determine the 
cause for the School's low performance and lack of progress;
(B) recommend actions, including reallocation of resources and technical 
assistance; changes in school procedures or operations; staff development for 
instructional and administrative staff; intervention for individual 
administrators or teachers; waivers from state statute or rule; or other actions 
the team considers appropriate; 
(C) assist in the development of a school plan for student achievement; and 
(D) assist the commissioner in monitoring the progress of the School in 
implementing the School plan for improvement of student achievement.
(g) Annual performance report. 
(1) The Governing Board of the School shall publish an annual report describing 
the educational performance of the School. The report shall include the School's 
performance objectives, progress toward these objectives, and the School's 
performance rating assigned by the Agency. Supplemental information to be 
included in the report shall be determined by the School's Governing Board. 
(2) The Governing Board of the School will disseminate the annual performance 
report to parents of enrolled students, districts that have placed students at 
the School, and regional education service centers (RESCs). Additionally, the 
Governing Board will notify the parents of enrolled students, districts that 
have placed students at the School, and RESCs of an opportunity for public 
discussion of the annual performance report at a regularly scheduled board 
meeting. The School's planning and decision-making committee will hold at least 
one public meeting annually for the purpose of discussing the School's 
performance report.
(3) By December 1, the School shall disseminate the annual performance report. 
(h) Reporting of data. 
(1) The School will report PEIMS data according to the following schedule. 
(A) The Agency and the School shall jointly develop separate action plans for 
the possible collection of organization, student, staff, and financial data. The 
action plan for organization and student data shall be completed by June 1998; 
for staff data by June 1999; and for financial data by June 2000. 
(B) The Agency and the School shall conduct studies to determine the feasibility 
of collecting data for each information category according to the following 
schedule: organization and student data during the 1998-1999 school year; staff 
data during the 1999-2000 school year; and financial data during the 2000-2001 
school year. 
(C) In each information category for which it is determined that data collection 
is feasible, the Agency and the School shall pilot the collection as follows: 
organization and student data during the 1999-2000 school year; staff data 
during the 2000-2001 school year; and financial data during the 2001-2002 school 
year. 
(D) Initial PEIMS collection shall be contingent on resolution of feasibility 
issues and modifications indicated by the pilot process. 
(2) To the extent possible, the Agency shall assist the School in accessing 
available resources to implement this section of the MOU. 
(i) Dispute resolution. Disputes between the School and the Agency concerning 
implementation of this MOU shall be resolved as follows.
(1) Staff of the School and the Agency shall identify and attempt to resolve the 
specific issues involved in the dispute. 
(2) If staff of the School and the Agency are unable to resolve the dispute 
after a reasonable time period, the executive officers of the School and the 
Agency shall assist the staff in identifying a mutually agreeable resolution to 
the dispute. 
(3) If the executive officers (or either of them) are unable to reach a mutually 
agreeable resolution, the School and the Agency shall pursue resolution through 
the use of mediation pursuant to the Governmental Dispute Resolution Act, 
Government Code, Chapter 2008. The mediator shall make such arrangements and 
decisions respecting the conduct of the proceedings as needed in the sole 
discretion of the mediator. The costs of mediation shall be borne equally by the 
School and the Agency. 
(4) If the School and the Agency fail to reach agreement through mediation 
pursuant to the Governmental Dispute Resolution Act, Government Code, Chapter 
2008, the following procedure shall be followed.
(A) The School and the Agency shall each select one impartial third party 
pursuant to Government Code, sec.2008.053. 
(B) The impartial third parties selected by the School and the Agency shall 
jointly select another impartial third party, who must be a person eligible to 
serve as impartial third party pursuant to Government Code, sec.2008.053. The 
person selected shall be the arbitrator of the dispute.
(C) The arbitrator selected by the impartial third parties selected by the 
School and the Agency shall arbitrate the dispute pursuant to Texas Civil 
Practice and Remedies Code, sec.154.027. The arbitrator shall make such 
arrangements and decisions respecting the conduct of the proceedings as needed 
in the sole discretion of the arbitrator. The costs of arbitration shall be 
borne equally by the School and the Agency. The parties hereby stipulate in 
advance that the decision of the arbitrator shall be binding and enforceable 
against both parties pursuant to Texas Civil Practice and Remedies Code, 
sec.154.027(b).
(j) Other terms. 
(1) This MOU shall be signed by the executive officers of the School and the 
Agency and shall be effective September 1, 1998. 
(2) This MOU may be considered for expansion, modification, or amendment upon 
mutual agreement of the executive officers of the School and the Agency. 
(3) In the event that federal and/or state laws should be amended, federally 
interpreted, or judicially interpreted so as to render continued implementation 
of this MOU unreasonable or impossible, the School and the Agency may agree to 
amend or terminate this MOU. 

sec.97.1012.Memorandum of Understanding between the Texas Education Agency and 
the Texas School for the Blind and Visually Impaired.
(a) Purpose. This memorandum of understanding (MOU) is a non-financial, mutual 
agreement between the Texas School for the Blind and Visually Impaired, 
hereafter referred to as "the School," and the Texas Education Agency, hereafter 
referred to as "the Agency," established pursuant to the Texas Education Code 
(TEC), sec.30.005. This MOU will establish: 
(1) the method for developing and reevaluating a set of indicators of the 
quality of learning at the School;
(2) the process for the Agency to conduct and report on an annual evaluation of 
the School's performance on the indicators; 
(3) the requirements for the School's Board to publish, discuss, and disseminate 
an annual report describing the educational performance of the School; and 
(4) the type of information the School shall be required to provide through the 
Public Education Information Management System (PEIMS).
(b) Accountability compliance reviews. 
(1) The Agency shall monitor the School's compliance with federal and state laws 
and regulations related to services for special populations by conducting a 
periodic on-site review. The Agency shall determine the schedule for the review. 
(2) The Agency, with input from the School, shall develop a compliance 
monitoring instrument that itemizes compliance indicators that are the 
responsibility of the School. The instrument will be disseminated to the School 
and updated jointly as appropriate. 
(c) Indicators of quality of learning for the School. 
(1) No later than August 31, 1999, the Agency and the School shall jointly 
develop and agree upon a set of quality indicators that are appropriate to the 
characteristics of students served by the School. 
(2) Annually, the commissioner of education shall approve indicators of 
performance that measure the quality of student learning at the School. 
(3) The indicators shall include measures of academic and/or developmental 
performance as well as other measures appropriate to the characteristics of the 
student populations served. 
(4) To the extent appropriate, the indicators shall incorporate academic 
excellence indicators and alternative assessment measures required under TEC, 
Chapter 39, Subchapter B. 
(d) Annual performance evaluation. 
(1) The School's annual performance evaluation shall be based on quality 
indicators selected annually from among the set of quality indicators developed 
and jointly agreed upon by the School and the Agency to address the 
characteristics of the student groups served.
(2) The selected quality indicators used for the annual performance evaluation 
shall measure, as appropriate, academic and/or non-academic performance on norm- 
or criterion-referenced instruments; progress in the attainment of student 
individualized education program goals and objectives; statewide criterion-
referenced assessments; completion of courses or credits; or completion of 
graduation requirements. Additional non-academic indicators may be selected that 
measure dropout rates, attendance, or other appropriate measures of student 
success. 
(3) The method for evaluating the School's annual performance shall be as 
follows. 
(A) Annually, by September 1, the School shall submit to the commissioner an 
accountability proposal. The proposal shall be developed with input from the 
School's planning and decision-making committee and shall include the following 
information: 
(i) quality indicators; 
(ii) performance objectives within each indicator; and 
(iii) minimum standards for determining achievement of performance objectives. 
(B) By September 15, the commissioner shall review the proposal and notify the 
School superintendent of approval, or needed modifications to obtain approval, 
of the proposed indicators and performance objectives.
(C) By November 1, the commissioner shall provide notification of final approval 
of the proposal indicators and performance objectives. 
(D) By July 1 following the year for which the School's performance is being 
evaluated, the School shall submit to the Agency all complete and accurate data 
necessary to document performance with respect to the approved indicators and 
performance objectives. 
(4) The schedule of activities related to the annual performance evaluation 
shall include the following activities. 
(A) During the 1998-1999 school year, the School and the Agency shall determine 
methods of evaluating student performance for determining achievement of 
performance objectives. 
(B) During the 1999-2000 school year, the School shall evaluate student 
performance in areas addressed by the quality indicators. 
(C) Beginning with the 2000-2001 school year, the Agency shall perform an annual 
performance evaluation for the School. 
(e) Annual performance report. 
(1) The Governing Board of the School shall publish an annual report describing 
the educational performance of the School. The report shall include the School's 
performance objectives and progress toward these objectives. Supplemental 
information to be included in the report shall be determined by the School's 
Governing Board. 
(2) The Governing Board of the School will disseminate the annual performance 
report to parents of enrolled students, districts that have placed students at 
the School, and regional education service centers (RESCs). Additionally, the 
Governing Board will notify the parents of enrolled students, districts that 
have placed students at the School, and RESCs of an opportunity for public 
discussion of the annual performance report at a regularly scheduled board 
meeting. The School's planning and decision-making committee will hold at least 
one public meeting annually for the purpose of discussing the School's 
performance report. 
(3) By December 1, the School shall disseminate the annual performance report. 
(f) Reporting of data. 
(1) The School will report PEIMS data according to the following schedule. 
(A) The Agency and the School shall jointly develop separate action plans for 
the possible collection of organization, student, staff, and financial data. The 
action plan for organization and student data shall be completed by June 1998; 
for staff data by June 1999; and for financial data by June 2000. 
(B) The Agency and the School shall conduct studies to determine the feasibility 
of collecting data for each information category according to the following 
schedule: organization and student data during the 1998-1999 school year; staff 
data during the 1999-2000 school year; and financial data during the 2000-2001 
school year. 
(C) In each information category for which it is determined that data collection 
is feasible, the Agency and the School shall pilot the collection as follows: 
organization and student data during the 1999-2000 school year; staff data 
during the 2000-2001 school year; and financial data during the 2001-2002 school 
year. 
(D) Initial PEIMS collection shall be contingent on resolution of feasibility 
issues and modifications indicated by the pilot process. 
(2) To the extent possible, the Agency shall assist the School in accessing 
available resources to implement this section of the MOU. 
(g) Dispute resolution. Disputes between the School and the Agency concerning 
implementation of this MOU shall be resolved as follows.
(1) Staff of the School and the Agency shall identify and attempt to resolve the 
specific issues involved in the dispute. 
(2) If staff of the School and the Agency are unable to resolve the dispute 
after a reasonable time period, the executive officers of the School and the 
Agency shall assist the staff in identifying a mutually agreeable resolution to 
the dispute. 
(3) If the executive officers (or either of them) are unable to reach a mutually 
agreeable resolution, the School and the Agency shall pursue resolution through 
the use of mediation pursuant to the Governmental Dispute Resolution Act, 
Government Code, Chapter 2008. The mediator shall make such arrangements and 
decisions respecting the conduct of the proceedings as needed in the sole 
discretion of the mediator. The costs of mediation shall be borne equally by the 
School and the Agency. 
(4) If the School and the Agency fail to reach agreement through mediation 
pursuant to the Governmental Dispute Resolution Act, Government Code, Chapter 
2008, the following procedure shall be followed. 
(A) The School and the Agency shall each select one impartial third party 
pursuant to Government Code, sec.2008.053. 
(B) The impartial third parties selected by the School and the Agency shall 
jointly select another impartial third party, who must be a person eligible to 
serve as impartial third party pursuant to Government Code, sec.2008.053. The 
person selected shall be the arbitrator of the dispute.
(C) The arbitrator selected by the impartial third parties selected by the 
School and the Agency shall arbitrate the dispute pursuant to Texas Civil 
Practice and Remedies Code, sec.154.027. The arbitrator shall make such 
arrangements and decisions respecting the conduct of the proceedings as needed 
in the sole discretion of the arbitrator. The costs of arbitration shall be 
borne equally by the School and the Agency. The parties hereby stipulate in 
advance that the decision of the arbitrator shall be binding and enforceable 
against both parties pursuant to Texas Civil Practice and Remedies Code, 
sec.154.027(b).
(h) Other terms. 
(1) This MOU shall be signed by the executive officers of the School and the 
Agency and shall be effective September 1, 1998. 
(2) This MOU may be considered for expansion, modification, or amendment upon 
mutual agreement of the executive officers of the School and the Agency. 
(3) In the event that federal and/or state laws should be amended, federally 
interpreted, or judicially interpreted so as to render continued implementation 
of this MOU unreasonable or impossible, the School and the Agency may agree to 
amend or terminate this MOU.
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 May 22, 1998.
TRD-9808468
Criss Cloudt
Associate Commissioner, Policy Planning and Research
Texas Education Agency
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-9701

TITLE 22. EXAMINING BOARDS
PART X. Texas Funeral Service Commission
CHAPTER 201. Licensing and Enforcement - Practice and Procedure
The Texas Funeral Service Commission proposes the repeal of sec.201.18 and new 
sec.201.18, concerning charges for providing copies of public information. The 
section is being repealed and replaced to be in compliance with the current 
General Services Commission rule 111.61 regarding charges for providing copies 
of public information. 
Eliza May, Executive Director, 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. May 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 current information regarding charges for providing copies of 
public information. There will be no effect on small businesses. There is no 
anticipated economic cost for persons who are required to comply with the 
section as proposed. 
Comments on the proposal may be submitted to Eliza May, Executive Director, 
Texas Funeral Service Commission, 510 South Congress Avenue, Suite 206, Austin, 
Texas 78704-1716. 

22 TAC sec.201.18
(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 Funeral 
Service Commission or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The repeal is proposed under Texas Civil Statutes, Article 4582b, sec.5, which 
authorizes the Texas Funeral Service Commission to adopt rules to administer the 
statute.
No other statute, code, or article is affect by the proposed repeal. 
sec.201.18. Charges for Providing Copies of Public 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 May 22, 1998.
TRD-9808428
Eliza May, M.S.S.W.
Executive Director
Texas Funeral Service Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 479-7222

The new section is proposed under Texas Civil Statutes, Article 4582b, sec.5, 
which authorizes the Texas Funeral Service Commission to adopt rules to 
administer the statute. 
No other statute, code, or article is affect by the proposed new section.

sec.201.18. Charges for Providing Copies of Public Information. 
To determine the charges for providing public information pursuant to the 
Government Code, Chapter 552, Subchapter F (the "Public Information Act"), the 
Texas Funeral Service Commission will follow the rules promulgated by the 
General Services Commission and published at 1 TAC, sec.sec.111.61-111.70 
effective September 18, 1996. 
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 May 22, 1998.
TRD-9808429
Eliza May, M.S.S.W.
Executive Director
Texas Funeral Service Commission
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 479-7222

PART XXII. Texas State Board of Public Accountancy
CHAPTER 505. The Board
22 TAC sec.505.10
The Texas State Board of Public Accountancy (Board) proposes an amendment to 
sec.505.10, concerning Board Committees. 
The proposed amendment to sec.505.10 will function by expanding the Rules 
Committee's authority to consider any board rule and by encouraging other board 
committees to consult with the Rules Committee. 
The Board hereby certifies that the proposed amendment has been reviewed by its 
legal counsel and found to be within the Board's authority to adopt.
William Treacy, Executive Director of the Board, has determined that for the 
first five-year period the proposed amendment will be in effect there will be no 
costs incurred by any person or entity as a result of enforcing or administering 
this amendment. 
Mr. Treacy has determined that for the first five-year period the amendment is 
in effect the public benefit expected as a result of adoption of the proposed 
rule amendment will be expanded authority of the Rules Committee to review any 
rule and other board committees taking advantage of the Rules Committee's 
expertise. 
The probable economic cost to persons required to comply with the amendment will 
be zero because this amendment applies only to internal operations of board 
committees. 
Mr. Treacy has determined that a Local Employment Impact Statement is not 
required because the proposed amendment will not affect a local economy. 
The Board requests comments on the substance and effect of the proposed 
amendment from any interested person. Comments must be received at the Board no 
later than noon on June 26, 1998. Comments should be addressed to Amanda G. 
Birrell, General Counsel, Texas State Board of Public Accountancy, 333 
Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention 
at (512) 305-7854. 
Mr. Treacy has determined that the proposed rule amendment will not have an 
adverse economic effect on small businesses because the amendment applies only 
to internal operating procedures of board committees and requires no action by 
any small business. The Board specifically invites comments from the public on 
the issues of whether on not the proposed rule will have an adverse economic 
effect on small business; if the rule is believed to have such an effect, then 
how may the Board legally and feasibly reduce that effect considering the 
purpose of the statute under which the rule is to be adopted; and if the rule is 
believed to have such an effect, how the cost of compliance for a small business 
compares with the cost of compliance for the largest business affected by the 
rule under any of the following standards: (a) cost per employee; (b) cost for 
each hour of labor; or (c) cost for each $100 of sales. See Tex Gov't Code Sec. 
2006.002(c) 
The amendment is proposed under the Public Accountancy Act, TEX. CIV. STAT., 
Article 41a-1, 6(a) (Vernon Supp. 1998), which authorizes the Board to adopt 
rules deemed necessary or advisable to effectuate the Act. No other statutes, 
articles, or codes are affected by this proposal. 

sec.505.10. Board Committees.
(a)-(d) (No change.) 
(e) Standing committee structure and charge to committees. The standing 
committees shall consist of the following individuals and shall be charged with 
the following responsibilities. 
(1)-(7) (No change.) 
(8) The board rules committee shall be comprised of at least two board members, 
one of whom shall serve as chairman, assisted by any number of non-board members 
who shall serve in an advisory capacity. The committee shall make 
recommendations to the board regarding board rules. <nl> All committees shall 
endeavor to consult with the board rules committee concerning proposed rules. 
<ol> [defined by the board chairman as requiring action.
(9)-(11) (No change.) 
(f)-(i) (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 May 20, 1998.
TRD-9808302
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 305-7848

22 TAC sec.505.11
The Texas State Board of Public Accountancy (Board) proposes statement of policy 
sec.505.11, concerning the Board's Peer Assistance Oversight Committee. 
The proposed statement of policy will explain the Board's policy for addressing 
issues concerning licenses impaired by substance abuse or mental illness. The 
Board hereby certifies that the proposed policy statement has been reviewed by 
its legal counsel and found to be within the Board's authority to adopt. 
William Treacy, Executive Director of the Board, has determined that for the 
first five-year period the proposed policy statement will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing 
or administering the statement of policy will be zero.
B. the estimated reductions in costs to the state and to local governments as a 
result of enforcing or administering the statement of policy will be none, 
and/or; 
C. The estimated in revenue to the state as a result of enforcing or 
administering the policy will be none. 
Mr. Treacy has determined that for the first five-year period the policy 
statement is in effect the public benefits expected as a result of adoption of 
the proposed statement of policy will be that impaired CPAs will have greater 
access to information concerning peer assistance programs. 
The probable economic cost to persons required to comply with the statement of 
policy will be none. 
Mr. Treacy has determined that a Local Employment Impact Statement is not 
required because the proposed statement of policy will not affect a local 
economy. 
The Board requests comments on the substance and effect of the proposed 
statement of policy from any interested person. Comments must be received at the 
Board no later than noon on June 30, 1998. Comments should be addressed to 
Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy, 333 
Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention 
at (512) 305-7854. 
Mr. Treacy has determined that the proposed statement of policy will not have an 
adverse economic effect on small businesses because the statement of policy 
affects only the dissemination of information by the Board. The Board 
specifically invites comments from the public on the issues of whether on not 
the proposed statement of policy will have an adverse economic effect on small 
business. If the statement of policy is believed to have such an effect, the 
Board requests comments on how the Board could legally and feasibly reduce that 
effect considering the purpose of the statutes under which the statement of 
policy is to be adopted; and if the statement of policy is believed to have such 
an effect, how the cost of compliance for a small business compares with the 
cost of compliance for the largest business affected by the statement of policy 
under any of the following standards: (a) cost per employee; (b) cost for each 
hour of labor; or (c) cost for each $100 of sales. See Tex Gov't Code Sec. 
2006.002(c) 
The statement of policy is proposed under the Public Accountancy Act, TEX. CIV. 
STAT., Article 41a-1, 6(a) (Vernon Supp. 1998), which authorizes the Board to 
adopt rules deemed necessary or advisable to effectuate the Act, and Chapter 467 
of the TEX. HEALTH SAFETY CODE (Vernon's 199) which authorizes professional 
licensing authorities to approve peer assistance programs.
No other statutes, articles, or codes are affected by this proposal.

sec.505.11. Texas State Board of Public Accountancy Policy Statement of the Peer 
Assistance Oversight Committee.
(a) The Texas State Board of Public Accountancy has established the Peer 
Assistance Oversight committee to oversee the activities of the Texas Society of 
Certified Public Accountants' peer assistance program as mandated under the 
Texas Health and Safety Code, Chapter 467. 
(b) The Peer Assistance Oversight Committee operates under the premise that 
impairments caused by substance abuse and mental illness are treatable. 
(c) The Peer Assistance Oversight Committee's responsibilities include, but are 
not limited to: 
(1) protecting the public from CPAs whose ethical, behavioral, and technical 
violations due to chemical dependency and/or mental illness have harmed, or have 
the potential to harm, the public; 
(2) encouraging CPAs, CPA examination candidates, and accounting students to 
seek assistance for impairment due to chemical dependency and/or mental illness; 
(3) cooperating with the Texas Society of CPAs peer assistance program in 
promoting confidential assistance to CPAs, CPA examination candidates, and 
accounting students who suffer from chemical dependency and/or mental illness; 
and 
(4) disseminating information about the peer assistance program to CPAs, CPA 
examination candidates, and accounting students. 
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 May 20, 1998.
TRD-9808303
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 305-7848

PART XXV. Structural Pest Control Board
CHAPTER 591. General Provisions
22 TAC sec.591.21
The Texas Structural Pest Control Board proposes an amendment to sec.591.21, 
concerning Definition of Terms. The proposed amendment creates a definition of 
barrier which includes any area treated with a termiticide.
Benny M. Mathis, Executive Director has determined that there will not be fiscal 
implications as a result of enforcing or administering the rule. There will be 
no estimated additional cost, estimated reduction in cost or estimated loss or 
increase in revenue to state or local government for the first five year period 
the rule will be in effect. There will be no cost per employee, cost per hour of 
labor or cost per $100 of sales to small or large businesses. 
Roger B. Borgelt, General Counsel has determined that for each year of the first 
five years the rule as proposed is in effect, the public benefits anticipated as 
a result of enforcing the rule as proposed will be allowing the use of termite 
control products with a mode of action other than contact poisoning while remain 
consistent with the Structural Pest Control Board termite control standards. 
There is no anticipated economic cost to individuals who are required to comply 
with the rule as proposed. 
Comments on the proposal may be submitted to Roger B. Borgelt, General Counsel, 
Structural Pest Control Board, 1106 Clayton Lane #100LW, Austin, Texas 78723. 
The amendment is proposed under Article 135b-6, which provides the Structural 
Pest Control Board with the authority to license and regulate the structural 
pest control industry. 
The following is the (statutes, articles or code) that are affected by this 
rule. 
Rule Number Statute, Article or Code 
22 TAC 599.2 Article 135b-6 
22 TAC 599.3 Article 135b-6 

sec.591.21. Definition of Terms. 
In addition to the definitions set out in the Structural Pest Control Act, 
Section 2, the following words, names, and terms shall have the following 
meanings, unless the context clearly indicates otherwise. 
<nl>(1)<ol> Act-The Texas Structural Pest Control Act, Texas Civil Statutes, 
Article 135b-6, as amended. 
<nl>(2)<ol> Apprentice-A sales or service employee who has been registered with 
the Structural Pest Control Board, but has not yet passed a technician 
examination. An apprentice license is valid for a maximum of 12 months. 
<nl>(3)<ol> Bait Process-The use of food or other requisite that may be treated 
with a pesticide and/or other mitigating agent that will adversely affect the 
pest. 
<nl>(4)<ol> Barrier-For the purposes of a termite treatment, an area of soil or 
other material which has been treated with a termiticide.
<nl>(5)<ol> Board-Structural Pest Control Board. 
<nl>(6)<ol> Category-The type of service or services a person or business entity 
is authorized to perform. 
<nl>(7)<ol> Chairman-An individual appointed by the Governor, who presides at 
the Board meetings. 
<nl>(8)<ol> Contract-A binding agreement between two or more persons or parties 
that spell out in writing, the terms and conditions or such agreement, and will 
include, but not limited to, warranties or guarantees for pest control work. 
<nl>(9)<ol> Executive Director-The person employed by the Board who administers 
the provisions of this Act and the rules and regulations promulgated by the 
Board. 
<nl>(10)<ol> Investigator-A structural pest control investigator employed by the 
Board. 
<nl>(11)<ol> License-A document issued by the Board to a person authorizing the 
practicing and/or supervising of the professional service or services indicated 
thereon. 
<nl>(12)<ol> Licensee-The holder of a valid license.
<nl>(13)<ol> Personal Contact- Physical presence at a work location. 
<nl>(14)<ol> Revoke-To cancel a license issued under authority of the Structural 
Pest Control Act. When a business license is revoked, the holder of said license 
must acquire a new license by completing a new application, and paying the 
required fee. In the case of the certified applicator, the holder of such 
certified applicator's license must acquire a new license by completing a new 
application, paying the required fee, and being re-examined in each category 
desired by said person. 
<nl>(15)<ol> Suspend-To cease operations for a period of time as specified by 
the Board. 
<nl>(16)<ol> Vice-Chairman-An individual appointed Board member elected by the 
Board, who presides at the Board meeting in the absence of the Chairman. 
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 May 12, 1998.
TRD-9807701
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 451-7200

CHAPTER 595. Compliance and Enforcement
22 TAC sec.595.5
The Structural Pest Control Board proposes amendments of sec.595.5, concerning 
Contracts. The proposed amendment adds the business name to the information 
required in all contracts, warranties and guarantees. It also expands the list 
of documents on which the information is required to include invoices and 
termite treatment disclosure documents. 
Benny M. Mathis, Executive Director has determined that there will not be fiscal 
implications as a result of enforcing or administering the rule. There will be 
no estimated additional cost, estimated reduction in cost or estimated loss or 
increase in revenue to state or local government for the first five year period 
the rule will be in effect. There will be no cost per employee, cost per hour of 
labor or cost per $100 of sales to small or large businesses. 
Roger B. Borgelt, General Counsel has determined that for each year of the first 
five years the rule as proposed is in effect, the public benefits anticipated as 
a result of enforcing the rule as proposed will be more efficient contact 
between pest control customers and their service providers when customers are 
attempting to reach the service provider. The anticipated economic cost to 
individuals who are required to comply with the rule as proposed will be the 
cost of reprinting documents to include the required information not already 
included. 
Comments on the proposal may be submitted to Roger B. Borgelt, General Counsel, 
Structural Pest Control Board, 1106 Clayton Lane #100LW, Austin, Texas 78723. 
The amendment is proposed under Article 135b-6, which provides the Structural 
Pest Control Board with the authority to license and regulate the structural 
pest control industry. 
The following is the (statutes, articles or code) that are affected by this 
rule. 
Rule Number-Statute, Article or Code 
22 TAC 599.4 Article 135b-6 

sec.595.5. Contracts.
(a) Each written contract for service of a business regulated by the Structural 
Pest Control Board must contain the name, address and telephone number of the 
Board. It must also include the business <nl>name,<ol> location address, 
telephone number and the statement "Licensed and regulated under the Structural 
Pest Control Act". 
(b) The requirement in subsection (a) of this section shall be on the face of 
any contract, warranty, <nl>invoice, termite treatment disclosure document<ol> 
or guarantee issued by the pest control operator.
(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 May 12, 1998.
TRD-9807702
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 451-7200

CHAPTER 599. Treatment Standards
22 TAC sec.599.7
The Structural Pest Control Board proposes amendments of sec.599.7, concerning 
Posting Notice of Inspection. The proposed amendment conforms language to the 
language in the Texas Official Wood Destroying Insect Report. It also allows the 
inspection notice to be placed in the bath trap as a new alternative. 
Benny M. Mathis, Executive Director has determined that there will not be fiscal 
implications as a result of enforcing or administering the rule. There will be 
no estimated additional cost, estimated reduction in cost or estimated loss or 
increase in revenue to state or local government for the first five year period 
the rule will be in effect. There will be no cost per employee, cost per hour of 
labor or cost per $100 of sales to small or large businesses. 
Roger B. Borgelt, General Counsel has determined that for each year of the first 
five years the rule as proposed is in effect, the public benefits anticipated as 
a result of enforcing the rule as proposed will be better understanding of 
allowable locations for the inspection notice and higher durability of notices 
placed in the new alternative bath trap access. There is no anticipated economic 
cost to individuals who are required to comply with the rule as proposed.
Comments on the proposal may be submitted to Roger B. Borgelt, General Counsel, 
Structural Pest Control Board, 1106 Clayton Lane #100 LW, Austin, Texas 78723. 
The amendment is proposed under Article 135b-6, which provides the Structural 
Pest Control Board with the authority to license and regulate the structural 
pest control industry. 
The following is the (statutes, articles, or code) that are affected by this 
rule. 
Rule Number Statute, Article or Code 
22 TAC 599.6 Article 135b-6 

sec.599.7. Posting Notice of Inspection. 
(a) Upon completion of an inspection for the purposes of completing the 
<nl>SPCB/T-3<ol>[SPCB/T-2] Form, the inspector shall post a durable sign 
adjacent to the [hot] water heater <nl>closet, interior of bath trap access<ol> 
or electric breaker box or beneath the kitchen sink giving the name and address 
of the licensee, the date of the inspection or treatment, and a statement that 
the notice should not be removed.
(b) (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 May 12, 1998.
TRD-9807703
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 451-7200

PART XXXV. Texas State Board of Examiners of Marriage and Family Therapists
CHAPTER 801.Licensure and Regulation of Marriage and Family Therapists
The Texas State Board of Examiners of Marriage and Family Therapists (board) 
proposes amendments to sec.sec.801.2, 801.19, 801.20, 801.143, 801.144, 801.203, 
801.204, 801.263 - 801.266, and 801.268, concerning the regulation of marriage 
and family therapists. Specifically, the sections cover definitions, fees, 
processing applications, supervisor requirements, conditions for supervised 
experience, provisional license by endorsement, temporary license, clock hour 
requirements for continuing education, types of acceptable continuing education, 
continuing education sponsors, criteria for approval of continuing education 
activities, and submission of continuing education. 
Section 801.2 is proposed for amendment to add new definitions, and to identify 
definitions by number in new Texas Register format to comply with Title 25, 
Texas Administrative Code, sec.91.1 effective February 17, 1998, for ease in 
reference and to clarify terms. Section 801.19 is proposed for amendment to 
increase the examination, renewal and late renewal fees and add new fees for 
continuing education sponsors and verification of license. The fee increases and 
new fees are necessary in order to cover the cost of administering the program. 
Section 801.20 is proposed for amendment to clarify language concerning lost, 
misdirected or undelivered correspondence. Section 801.143 is proposed for 
amendment to delete the requirement for supervisors to complete continuing 
education related to supervision. Section 801.144 is proposed for amendment to 
allow for disciplinary action to be taken against the supervisor and the 
associate, to clarify arrangements between an associate and an organization, and 
to limit the number of supervisors an associate may have during the supervised 
experience. Section 801.203 is proposed for amendment to require that 
individuals licensed by endorsement show documentation of education and 
experience. Section 801.204 is proposed for amendment to increase the allowable 
extension period of a temporary license. Section 801.263 is proposed for 
amendment to decrease the number of required annual continuing education hours. 
Section 801.264 is proposed for amendment to allow for distance learning types 
of continuing education activities. Section 801.265 is proposed for amendment to 
decrease the length of the certification period for continuing education 
sponsors and to clarify documentation that must be submitted by continuing 
education sponsors and to require a fee for continuing education sponsorship. 
Section 801.266 is proposed for amendment to clarify continuing education credit 
earned for supervision. Section 801.268 is proposed for amendment to decrease 
the number of required annual continuing education hours. 
Bobby D. Schmidt, Executive Director, has determined that for the first five-
year period the sections as proposed are in effect, there will be fiscal 
implications as a result of enforcing or administering the sections. The new and 
increased fees are projected to generate additional revenues for state 
government, which will be used to offset the cost of administering the program. 
There will be no fiscal implication for state or local government. 
Mr. Schmidt also has determined that for each year of the first five years the 
sections are in effect, the public benefit as a result of enforcing or 
administering these sections will be to clarify definitions, cover the cost of 
administering the program, clarify language for lost, misdirected or undelivered 
correspondence, allow for disciplinary actions against supervisors and 
associates, clarify arrangements between associates and organizations, clarify 
requirements for licensure by endorsement, clarify extension periods for 
temporary licenses, clarify requirements for continuing education, types of 
acceptable continuing education and requirements for continuing education 
sponsors, clarify continuing education earned for supervision, and clarify the 
number of continuing education hours required for renewal of license. The 
sections assure that the regulation of marriage and family therapists continues 
to identify competent providers. Persons required to comply with these 
amendments will be required to pay increased fees for examination and licensure 
renewal. Small businesses will be minimally impacted in that continuing 
education sponsors will be required to pay a $50.00 sponsor approval fee once 
every three years. There is no anticipated impact on local government. 
Comments on the proposal may be submitted to Bobby D. Schmidt, Executive 
Director, Texas State Board of Examiners of Marriage and Family Therapists, 1100 
West 49th Street, Austin, Texas 78756-3183, Telephone (512) 834-6657. Comments 
will be accepted for 30 days following the date of publication of this proposal 
in the Texas Register.

SUBCHAPTER A.Introduction
22 TAC sec.801.2
The amendment is proposed under Texas Civil Statutes, Article 4512c-1, which 
provides the Texas State Board of Examiners of Marriage and Family Therapists 
with the authority to adopt rules concerning the regulation of marriage and 
family therapists. 
The proposed amendment affects Texas Civil Statutes, Article 4512c-1.

sec.801.2.Definitions.
The following words and terms when used in this chapter shall have the following 
meanings unless the context indicates otherwise. 
<nl>(1)<ol> Act - The Licensed Marriage and Family Therapist Act relating to the 
relating to the licensing and regulation of marriage and family therapists, 
Texas Civil Statutes, Article 4512c-1.
<nl>(2<ol>) Administrative Law Judge (ALJ) - A person within the State Office of 
Administrative Hearings who conducts hearings under this subchapter on behalf of 
the board.
<nl>(3)<ol> APA - The Administrative Procedure Act, of the Texas Government 
Code, Chapter 2001. 
<nl>(4)<ol> Associate - A marriage and family therapy associate. 
<nl>(5)<ol> Board - The Texas State Board of Examiners of Marriage and Family 
Therapists. 
<nl>(6)<ol> Completed application - The official marriage and family therapy 
application form, fees and all supporting documentation which meets the criteria 
set out in sec.801.73 of this title (relating to Required Application 
Materials). 
<nl>(7)<ol> Contested case - A proceeding in accordance with the APA and this 
chapter, including, but not limited to, rule enforcement and licensing, in which 
the legal rights, duties, or privileges of a party are to be determined by the 
board after an opportunity for an adjudicative hearing. 
<nl>(8)<ol> Department - The Texas Department of Health
<nl>(9)<ol> Family systems - An open, on-going, goal-seeking, self-regulating, 
social system which shares features of all such systems. Certain features such 
as its unique structuring of gender, race, nationality and generation set it 
apart from other social systems. Each individual family system is shaped by its 
own particular structural features (size, complexity, composition, life stage), 
the psychobiological characteristics of its individual members (age, race, 
nationality, gender, fertility, health and temperament) and its socio-cultural 
and historic position in its larger environment. 
<nl>(10)<ol> Formal hearing - A hearing or proceeding in accordance with this 
chapter, including a contested case as defined in this section to address the 
issues of a contested case. 
<nl>(11)<ol> <nl> Group supervision - Supervision that involves a minimum of 
three and no more than six marriage and family supervisees or associates in a 
clinical setting during the supervision hour. A supervision hour is sixty 
minutes. <ol>
<nl>(12)<ol> <nl> Individual supervision - Supervision of no more than two 
marriage and family therapy supervisees or associates in a clinical setting 
during the supervision hour. A supervision hour is sixty minutes. <ol>
<nl>(13)<ol> Investigator - A professional complaint investigator employed by 
the Texas Department of Health. 
<nl>(14)<ol> License - A marriage and family therapist license, a temporary 
marriage and family therapist associate license, or a provisional marriage and 
family therapist license. 
<nl>(15)<ol> Licensed marriage and family therapist - An individual who offers 
to provide marriage and family therapy for compensation.
<nl>(16)<ol> Licensee - Any person licensed by the Texas State Board of 
Examiners of Marriage and Family Therapists. 
<nl>(17)<ol> Marriage and family therapist associate - A person who holds a 
temporary license issued by the Texas State Board of Examiners of Marriage and 
Family Therapists to practice marriage and family therapy under the supervision 
of a board-approved supervisor. 
<nl>(18)<ol> Marriage and family therapy - The rendering of professional 
therapeutic services to individuals, families, or married couples, singly or in 
groups, and involves the professional application of family systems, theories, 
and techniques in the delivery of therapeutic services to those persons. The 
term includes the evaluation and remediation of cognitive, affective, 
behavioral, or relational dysfunction within the context of <nl> therapy.<ol> 
[marriage or family systems.] 
<nl>(19)<ol> Month - A calendar month. 
<nl>(20)<ol> Party - Each person, governmental agency, or officer or employee of 
a governmental agency named by the Administrative Law Judge (ALJ) as having a 
justiciable interest in the matter being considered, or any person, governmental 
agency, or officer or employee of a governmental agency meeting the requirements 
of a party as prescribed by applicable law.
<nl>(21)<ol> Person - An individual, corporation, partnership, or other legal 
entity. 
<nl>(22)<ol> Pleading - Any written allegation filed by a party concerning its 
claim or position. 
<nl>(23)<ol> Recognized religious practitioner - A rabbi, clergyman, or person 
of similar status who is a member in good standing of and accountable to a 
legally recognized denomination or legally recognizable religious denomination 
or legally recognizable religious organization and other individuals 
participating with them in pastoral counseling if: 
(A) the therapy activities are within the scope of the performance of their 
regular or specialized ministerial duties and are performed under the auspices 
of sponsorship of an established and legally cognizable church, denomination or 
sect, or an integrated auxiliary of a church as defined in Federal Tax 
Regulations, 26, Code of Federal Regulation 1.6033-2(g)(5)(i), (1982); 
(B) the individual providing the service remains accountable to the established 
authority of that church, denomination, sect, or integrated auxiliary; and 
(C) the person does not use the title of or hold himself or herself out as a 
licensed marriage and family therapist. 
<nl>(24)<ol> Regionally accredited institutions - An institution accredited by 
one of the following accreditation associations will be accepted for licensing 
purposes: Middle States Association of Colleges and Schools, New England 
Association of Schools and Colleges, North Central Association of Colleges and 
Schools, Northwest Association of Schools and Colleges, Southern Association of 
Colleges and Schools, and Western Association of Schools and Colleges. 
<nl>(25)<ol> Rules - The rules in this chapter are covering the designated 
policies and procedures of operation for the board and for individuals affected 
by the Act. 
<nl>(26)<ol> Supervision - The guidance or management of an associate in the 
provision of direct clinical services. 
<nl>(27)<ol> Supervisor - A person meeting the requirements set out in 
sec.801.143 of this title (relating to Supervisor Requirements), to supervise an 
associate and/or marriage and family therapist. 
<nl>(28)<ol> Texas Open Meetings Act - Government Code, Chapter 551. 
<nl>(29)<ol> Texas Open Records Act - Government Code, Chapter 552. 
<nl>(30)<ol> Therapist - For purposes of this chapter, a Texas licensed marriage 
and family therapist. 
<nl>(31)<ol> Waiver - The suspension of educational, professional, and/or 
examination requirements for applicants who meet the criteria for licensure 
under special conditions. 
<nl>(32)<ol> Year - A calendar year. 
[Hearing Examiner - An attorney duly designated and appointed by the chairperson 
of the board or the commissioner of health who conducts hearings under this 
chapter on behalf of 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 May 22, 1998.
TRD-9808459
George Pulliam
Chairman
Texas State Board of Examiners of Marriage and Family Therapists
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 458-7236

SUBCHAPTER B.The Board
22 TAC sec.801.19, sec.801.20
The amendments are proposed under Texas Civil Statutes, Article 4512c-1, which 
provides the Texas State Board of Examiners of Marriage and Family Therapists 
with the authority to adopt rules concerning the regulation of marriage and 
family therapists. 
The proposed amendments affect Texas Civil Statutes, Article 4512c-1. 

sec.801.19.Fees.
(a) The Texas State Board of Examiners of Marriage and Family Therapists (board) 
has established the following fees for licenses, license renewals, examinations, 
and all other administrative expenses under the Licensed Marriage and Family 
Therapists Act (Act). 
(b) The schedule of fees shall be as follows: 
(1) (No change.) 
(2) licensure examination - <nl>$195;<ol> [$125;
(3) (No change.)
(4) renewal fee -<nl>$65;<ol> [$40;] 
(5) late renewal fee - late renewal fees shall be set as follows: 
(A) on or before 90 days - renewal fee plus one-half of the examination fee 
<nl>($162.50;)<ol> [($102.50);] and 
(B) longer than 90 days but less than one year - renewal fee plus fee equal to 
the examination fee <nl>($260;)<ol> [($165); and
(6) - (9) (No change.) 
<nl>(10)<ol> <nl>continuing education sponsor fee - $50; <ol>
<nl>(11)<ol> [(10)] child support reinstatement fee - $40<nl>; and<ol> 
<nl>(12)<ol> <nl> verification fee - $10. <ol>
(c) - (e) (No change.) 

sec.801.20.Processing Applications.
(a) - (e) (No change.) 
(f) The board is not responsible for lost, misdirected, or undelivered 
correspondence [if sent to the address last reported to 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 May 22, 1998.
TRD-9808460
George Pulliam
Chairman
Texas State Board of Examiners of Marriage and Family Therapists
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 458-7236

SUBCHAPTER G.Experience Requirements for Examination and Licensure
22 TAC sec.801.143, sec.801.144
The amendments are proposed under Texas Civil Statutes, Article 4512c-1, which 
provides the Texas State Board of Examiners of Marriage and Family Therapists 
with the authority to adopt rules concerning the regulation of marriage and 
family therapists. 
The proposed amendments affect Texas Civil Statutes, Article 4512c-1. 

sec.801.143.Supervisor Requirements.
(a) - (c) (No change.) 
[(d) If licensed by the board, the supervisor must complete three annual clock-
hours of continuing education directly related to the supervision of 
associates.] 

sec.801.144.Other Conditions for Supervised Experience.
(a) - (e) (No change.) 
<nl>(f)<ol> <nl> During the post graduate supervision, both the supervisor and 
the associate may have disciplinary actions taken against their licenses for 
violations of the rules. <ol>
[(f) During internship, the full professional responsibility for the therapeutic 
activities of an associate shall rest with the associate's official supervisor.] 
(g) (No change.) 
(h) If an associate enters into contracts with both a supervisor and an 
organization with which the supervisor is employed or affiliated: 
(1) the therapeutic services shall be performed on the site(s) of the 
organization; <nl>and<ol> 
(2) <nl>clients records shall remain the property of the organization.<ol> [no 
payment for services shall be made directly by a client to the associate; ] 
[(3) client's records shall remain the property of the organization;] 
[(4) there shall be no financial arrangements between the organization and 
associate that have been made that extend beyond the period of supervision of 
the associate by the supervisor.] 
(i) - (k) (No change.) 
(l) An associate may only have one board-approved supervisor at a time, unless 
given prior approval by the board [Board] <nl> or its designee.<ol> [An 
associate may have no more than two board-approved supervisors during the period 
of supervised experience unless additional supervisors are approved by the 
board.] 
(m) (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 May 22, 1998.
TRD-9808461
George Pulliam
Chairman
Texas State Board of Examiners of Marriage and Family Therapists
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 458-7236

SUBCHAPTER I.Issuance of a License
22 TAC sec.801.203, sec.801.204
The amendments are proposed under Texas Civil Statutes, Article 4512c-1, which 
provides the Texas State Board of Examiners of Marriage and Family Therapists 
with the authority to adopt rules concerning the regulation of marriage and 
family therapists. 
The proposed amendments affect Texas Civil Statutes, Article 4512c-1.

sec.801.203.Provisional License by Endorsement.
(a) A provisional license may be granted to a person who:
(1) (No change.) 
(2) has successfully passed a national examination relating to marriage and 
family therapy or an examination approved by the Texas State Board of Examiners 
of Marriage and Family Therapists (board); [and]
(3) is sponsored by a licensed marriage and family therapist in Texas with whom 
the provisional license holder may practice under this section<nl>;<ol> [.] 
<nl>(4)<ol> <nl> if licensed without examination, the applicant must submit 
official documentation of education and professional experience equivalent to 
the requirements in effect during the grandfather clause. Final approval will be 
made by the board or its designee; <ol>
<nl>(5)<ol> <nl> the provisional license holder provides documentation, on board 
prescribed forms, of the experience requirements set out in Subchapter G of this 
chapter (relating to Experience Requirements for Examination and Licensure); and 
<ol>
<nl>(6)<ol> <nl> the provisional license holder meets any other requirements set 
forth under the Licensed Marriage and Family Therapist Act (Act). <ol>
(b) Upon formal written request, the board <nl>or its designee <ol> may waive 
the requirement set out in subsection (a)(3) of this section if it is determined 
that compliance with subsection (a)(3) of this section would cause undue 
hardship to the applicant. 
(c) - (d) (No change.) 

sec.801.204.Temporary License.
(a) (No change.) 
(b) The temporary license will be issued for a period of 30 months and may be 
extended for <nl>24 months<ol> [180 days] with the board's <nl>or its 
designee's<ol> approval. 
(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 May 22, 1998.
TRD-9808462
George Pulliam
Chairman
Texas State Board of Examiners of Marriage and Family Therapists
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 458-7236

SUBCHAPTER K.Continuing Education Requirements
22 TAC sec.sec.801.263-801.266, 801.268
The amendments are proposed under Texas Civil Statutes, Article 4512c-1, which 
provides the Texas State Board of Examiners of Marriage and Family Therapists 
with the authority to adopt rules concerning the regulation of marriage and 
family therapists. 
The proposed amendments affect Texas Civil Statutes, Article 4512c-1. 

sec.801.263.Clock Hour Requirements for Continuing Education.
A licensee must complete <nl>15<ol> [20] clock hours of continuing education 
acceptable to the Texas State Board of Examiners of Marriage and Family 
Therapists (board) each year as described in sec.801.262(b) of this title 
(relating to Deadlines). On or after September 1, 1995, a three clock-hour 
marriage and family ethics course must be submitted every third year. A clock-
hour shall be 60 minutes of attendance and participation in an acceptable 
continuing education experience. 

sec.801.264.Types of Acceptable Continuing Education.
Continuing education undertaken by a therapist shall be acceptable to the board 
as credit hours if it is offered by an approved sponsor(s) in the following 
categories: 
(1) - (6) (No change.) 
(7) by teaching a graduate or undergraduate course in marriage and family 
therapy at a college or university (graduate work instruction may count for no 
more than one-half of annual continuing education)<nl>; and<ol> [.] 
<nl>(8)<ol> <nl>by completing correspondence courses, satellite or distance 
learning courses, and/or audio-video courses relative to marriage and family 
therapy (no more than four hours per year). Ethics may not be obtained in this 
manner. <ol> 

sec.801.265.Continuing Education Sponsor.
The Texas State Board of Examiners of Marriage and Family Therapists (board) is 
not responsible for approving individual continuing education programs. The 
Texas State Board of Examiners of Marriage and Family Therapists (board) will 
approve an institute, agency, office, organization, association, or individual 
as a continuing education sponsor of continuing education units. The board will 
grant a <nl>three-year<ol> [five-year] certificate to organizations which shall 
permit the organizations to approve continuing education units for their 
marriage and family therapy courses, seminars, and conferences. These 
organizations<nl> must submit an annual list of their seminars, workshops and 
courses with the presenters name(s) to the board.<ol> [do not need prior 
permission from the board but must submit an annual list of their seminars, 
workshops, and courses with the individual's name to the board.] Any university, 
professional organization, or individual who meets the required criteria may 
advertise as approved sponsors of continuing education for licensed marriage and 
family therapists. 
(1)- (3) (No change.) 
<nl>(4)<ol> <nl>Sponsors shall pay a continuing education sponsor fee which will 
be good for three years from receipt of said fee.<ol>

sec.801.266.Criteria for Approval of Continuing Education Activities.
Each continuing education experience submitted by a licensee or sponsor will be 
evaluated on the basis of the following criteria. 
(1) - (3) (No change.) 
(4) Credit may be earned for clinical supervision of marriage and family therapy 
interns <nl>or associates<ol>. Supervision may count for no more than one-half 
[or ten hours] of annual continuing education. 
(5) (No change.) 

sec.801.268.Submission of Continuing Education.
Continuing education units of no less than <nl>15<ol> [20] hours must be 
reported annually by the licensee at the time of renewal. These hours will be 
reported on the form provided by the Texas State Board of Examiners of Marriage 
and Family Therapists (board). The board shall conduct an annual random audit 
requesting documentation of continuing education. Individual continuing 
education certificates of attendance shall not be submitted unless the licensee 
is requested to do so by the board. 
(1) - (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 May 22, 1998.
TRD-9808463
George Pulliam
Chairman
Texas State Board of Examiners of Marriage and Family Therapists
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 458-7236

TITLE 25. HEALTH SERVICES
PART I. Texas Department of Health
CHAPTER 313. Athletic Trainers
25 TAC sec.sec.313.3, 313.5, 313.15, 313.20
The Advisory Board of Athletic Trainers (board) proposes amendments to 
sec.sec.313.3, 313.5, 313.15 and new sec.313.20, concerning the regulation of 
licensed athletic trainers. Specifically, the sections cover fees, 
qualifications, guidelines for conduct, and scope of practice. Section 313.3 is 
proposed for amendment to increase the temporary license and license renewal 
fees and add a new application fee. The fee increases and the new fee are 
necessary in order to cover the cost of administering the program. Section 313.5 
is proposed for amendment to delete unnecessary language; to provide for 
licensure from another state or national certification as an athletic trainer as 
one of the methods to be approved to take the Texas athletic trainer 
examination; to delete the requirement that a supervising athletic trainer be an 
employee of the college or university; to delete restrictions on the types of 
affiliated settings in which an applicant may earn apprenticeship hours, and to 
delete the requirement that an applicant must maintain enrollment at the same 
institution where he or she is completing the apprenticeship. Section 313.15 is 
proposed for amendment to prohibit a licensee from engaging in sexual contact 
with a person receiving athletic training services from the licensee. New 
sec.313.20 is proposed to set out the scope of athletic training practice. 
Kathy Craft, Program Director, has determined that for the first five-year 
period the sections as proposed are in effect, there will be fiscal implications 
as a result of enforcing or administering the sections. The new and increased 
licensing fees are projected to generate additional revenues of $61,695 per year 
for state government, which will be used to offset the cost of administering the 
program. There will be no fiscal implications for local governments.
Ms. Craft has also determined that for each of the first five years the sections 
are in effect, the public benefit as a result of enforcing or administering the 
sections will be to cover the cost of administering the program, to clarify the 
qualifications for examination for licensure, to clarify acceptable standards of 
conduct for athletic trainers, and to set out what services may be performed by 
a licensed athletic trainer. The sections assure that the regulation of athletic 
trainers continues to identify competent providers. There will be no cost to 
small businesses. There will be no impact on local employment.
Comments on the proposal may be submitted to Kathy Craft, Program Director, 
Advisory Board of Athletic Trainers, 1100 West 49th Street, Austin, Texas 78756-
3183, telephone (512) 834-6615. Comments will be accepted for 30 days following 
the date of publication of this proposal in the Texas Register. 
The amendments and new section are proposed under Texas Civil Statutes, Article 
4512d, sec.5(a), which provides the board with the authority to adopt rules 
consistent with the Act which are necessary for the performance of its duties; 
under Texas Civil Statutes, Article 4512d, sec.5(c) which provides the board 
with the authority to establish guideline for athletic trainers in the state; 
and under Texas Civil Statutes, Article 4512d, sec.7(a) which provides the board 
with the authority to set fees in amounts that are reasonable and necessary to 
collect sufficient revenue to cover the costs of administration of the Act. 
The amendments and new section affects Texas Civil Statutes, Article 4512d.

sec.313.3. Fees. 
(a) The schedule of fees of the board is as follows: 
(1)-(3) (No change.) 
(4) renewal fee - <nl>$75<ol> [$40]; 
(5) late renewal fee: 
(A) <nl>$100<ol> [$65] when renewed on or within 90 days of expiration plus $10 
if license certificate must be reissued; 
(B) <nl>$125<ol> [$90] when renewed later than 90 days, but less than one year 
after expiration plus $10 if license certificate must be <nl>reissued<ol> 
[issued]; or 
(C) <nl>$165<ol> [$130] when renewed at least one year but less than two years 
after expiration plus $10 if license certificate must be reissued; 
(6) child support reinstatement fee - $50; [and] 
(7) temporary license fee - <nl>$100; and<ol> [$50] 
<nl>(8)<ol> application fee - $60.
(b)-(f) (No change.) 

sec.313.5. Qualifications. 
(a) [Purpose.] The purpose of this section is to set out the qualifications for 
examination and licensure as an athletic trainer.
(b) [Curriculum requirements.] Each applicant must have a baccalaureate or post-
baccalaureate degree from a college or university which held accreditation, at 
the time the degree was conferred, from an accepted regional educational 
accrediting association reported by the American Association of Collegiate 
Registrars and Admissions Officers. 
(1) The [curriculum] requirements approved by the Advisory Board of Athletic 
Trainers (board) for applicants qualifying under Texas Civil Statutes, Article 
4512d (Act), sec.9(1), are as follows. 
(A) <nl>A person shall hold a baccalaureate or post-baccalaureate degree and one 
of the following:<ol> [A person shall have a baccalaureate or post-baccalaureate 
degree which includes at least 24 hours of combined academic credit from each of 
the following course areas:] 
(i) <nl>current licensure, registration, or certification as an athletic trainer 
issued by another state, jurisdiction, or territory of the United States; or<ol> 
[human anatomy;] 
(ii) <nl>current national certification as an athletic trainer issued by the 
National Athletic Trainers Association Board of Certification (NATABOC).<ol> 
[health, disease, nutrition, fitness, wellness, or drug and alcohol education;] 
[(iii) kinesiology or biomechanics;]
[(iv) human physiology or physiology of exercise;] 
[(v) athletic training, sports medicine, or care and prevention of injuries;] 
[(vi) advanced athletic training, advanced sports medicine, or assessment of 
injury; and] 
[(vii) therapeutic exercise or rehabilitation or therapeutic modalities.] 
(B) In place of the requirements in subparagraph (A) of this paragraph, a person 
shall have: 
(i)-(ii) (No change.) 
(iii) an apprenticeship in athletic training meeting the following guidelines. 
(I) The program shall be under the direct supervision of and on the same campus 
as a Texas licensed athletic trainer, or if out-of-state, the college or 
university's certified or state licensed trainer. [The athletic trainer must be 
an employee of the college or university. The athletic trainer shall not be an 
outside consultant or independent contractor unless the athletic trainer is a 
temporary supervisor (less than one semester) due to death, medical emergency, 
or other emergency of the supervising athletic trainer who was an employee of 
the college or university.] 
(II) The apprenticeship must be a minimum of 1800 clock hours. It must be based 
on the academic calendar and must be completed during at least five fall and/or 
spring semesters. Hours in the classroom do not count toward apprenticeship 
hours. 
(III) The hours must be completed in college or university intercollegiate 
sports programs. A maximum of <nl>600<ol> [300] clock hours of the 1800 clock 
hours may be accepted from [one or a combination of the following] <nl>an 
affiliated setting which the college or university's athletic trainer has 
approved. No more than 300 clock hours may be earned at one affiliated setting. 
These hours must be under the direct supervision of a licensed physician, 
licensed or certified athletic trainer, or licensed physical therapist.<ol> 
[settings:] 
[(-a-) hours completed in a clinic setting which the college or university's 
athletic trainer has approved. These hours must be under the direct supervision 
of a licensed physician, licensed athletic trainer, or licensed physical 
therapist; or] 
[(-b-) hours completed in a secondary school setting arranged by the college or 
university's athletic trainer. Such hours are limited to sports in grades 7 to 
12. These hours must be under the direct supervision of a licensed athletic 
trainer; or] 
[(-c-) hours completed in a professional or semi-professional setting arranged 
by the college or university's athletic trainer. These hours must be approved by 
the supervising licensed athletic trainer.] 
(IV) 1500 clock hours of the apprenticeship shall be fulfilled while enrolled as 
a student at <nl>a<ol> [the] college or university [where he or she is 
completing the apprenticeship]. 
(V) The apprenticeship must offer work experience in a variety of sports. It 
shall include instruction by the college or university's athletic trainer in 
prevention of injuries, emergency care, rehabilitation, and modality usage. 
(2) (No change.) 
(c)-(d) (No change.) 

sec.313.15. Guidelines for Conduct. 
(a)-(c) (No change.) 
(d) Professional relationships with clients. 
(1)-(6) (No change.) 
<nl>(7)<ol> A licensee shall not engage in sexual contact with a person 
receiving athletic training services from the licensee. Sexual contact shall 
mean the activities or behaviors described in the Texas Penal Code, sec.21.01. 
(e)-(g) (No change.) 

sec.313.20. Scope of Practice. 
(a) A licensed athletic trainer prevents, assesses, treats, rehabilitates, and 
researches injuries and illnesses incurred by athletes. An athlete is a person 
involved in exercise, conditioning, or a physical activity that requires 
physical strength, power, endurance, skill, or speed. A licensed athletic 
trainer practices under the advice and consent of a team physician.
(b) The activities listed in subsection (c)(1) - (7) of this section may be 
performed in any setting authorized by a team physician and may include, but not 
be limited to, an educational institution, professional or amateur athletic 
organization, an athletic facility, or a health care facility.
(c) Services provided by a licensed athletic trainer may include, but are not 
limited to: 
(1) plan and implement a comprehensive athletic injury and illness prevention 
program; 
(2) conduct an initial assessment of an athlete's injury or illness and 
formulate an impression of the injury or illness in order to provide emergency 
or continued care and refer to a physician for definitive diagnosis and 
treatment, if appropriate; 
(3) administer first aid and emergency care for acute athletic injuries and 
illnesses; 
(4) coordinate, plan, and implement a comprehensive rehabilitation program for 
athletic injuries; 
(5) coordinate, plan, and supervise all administrative components of a sports 
medicine program; 
(6) provide health care information and counsel athletes; and 
(7) Conduct research and provide instruction on subject matter related to sports 
medicine. 
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 May 19, 1998.
TRD-9808143
Michael Daniel Saly
Chairman
Advisory Board of Athletic Trainers
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 458-7236

TITLE 28. INSURANCE
PART I. Texas Department of Insurance
CHAPTER 5. Property and Casualty Insurance
SUBCHAPTER E. Texas Catastrophe Property Insurance Association
28 TAC sec.5.4007, sec.5.4008
The Texas Department of Insurance proposes amendments to sec.5.4007 and 
sec.5.4008, concerning building code specifications in the plan of operation of 
the Texas Windstorm Insurance Association (Association). 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 Leg., ch. 438, sec.1, eff. 
Sept. 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, including 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, including (i) 
effective 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) effective June 1, 1996, the City of Morgan's Point (Commissioner's 
Order No. 96-0380, April 5, 1996); and (iii) effective April 1, 1997, in 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 Association's plan of operation specifies in sec.5.4007 applicable 
building code standards to qualify for coverage from the Association, as 
required by Article 21.49, sec.6A(f) of the Insurance Code, for structures 
located in designated catastrophe areas which were constructed, repaired, or to 
which additions are made prior to the effective date of the new building code 
standards and specifications; and in sec.5.4008, for structures located in 
designated catastrophe areas which were constructed, repaired, or to which 
additions are made on and after the effective date of the new building code 
standards and specifications. The Building Code for Wind Resistant Construction 
(Code) is adopted by reference in sec.5.4008(a) pursuant to Commissioner's Order 
No. 97-0626, (June 30, 1997) to be effective June 1, 1998, in certain designated 
catastrophe areas along the Texas coast. The proposed amendments are necessary 
to delay the effective date of the new building code standards and 
specifications in the Code from June 1, 1998 to September 1, 1998. The change in 
the effective date is necessary to allow additional time for building products 
and materials that meet the windload requirements of the new Code to become 
available in the designated catastrophe areas subject to the Code. Currently 
there is a scarcity in these designated catastrophe areas of certain building 
products, such as shutters, windows, doors, and garage doors, that are necessary 
to comply with the Code on and after June 1, 1998. Amending the effective date 
of the Code will allow an additional three months for manufacturers to produce 
the new building products and for building material suppliers to obtain these 
new products for distribution to home builders. Although under the proposed 
amendments, the new Code would become effective September 1, 1998, builders in 
the designated catastrophe areas subject to the Code are encouraged to use 
products and methods which comply with the Code in the interim as new products 
become available for construction, repairs, or additions made on and after June 
1, 1998. Under the proposed amendment to sec.5.4007, the building code standards 
and specifications in sec.5.4007(a) apply to designated catastrophe areas 
seaward of the Intracoastal Canal for structures constructed, repaired or to 
which additions are made prior to September 1, 1998; and the building code 
standards and specifications in sec.5.4007(b) apply to designated catastrophe 
areas inland of the Intracoastal Canal for structures constructed, repaired or 
to which additions are made prior to September 1, 1998. Under the proposed 
amendments to sec.5.4008, the building code standards and specifications 
contained in sec.5.4008(a) apply to designated catastrophe areas seaward of the 
Intracoastal Canal for structures constructed, repaired or to which additions 
are made on and after September 1, 1998; the building code standards and 
specifications contained in sec.5.4008(b) apply to designated catastrophe areas 
inland of the Intracoastal Canal and within approximately 25 miles of the Texas 
coastline and east of the specified boundary line (as specified in 
sec.5.4008(b)(2)(A)) and certain areas in Harris County for structures 
constructed, repaired or to which additions are made on and after September 1, 
1998; and the building code standards and specifications contained in 
sec.5.4008(c) apply to designated catastrophe areas inland and west of the 
specified boundary line (as specified in sec.5.4008(b)(2)(A)) for structures 
constructed, repaired or to which additions are made on and after September 1, 
1998. 
Lyndon Anderson associate commissioner, property and casualty division, has 
determined that for each year of the first five years the proposed amendments 
are in effect, there will be no fiscal implications to state and local 
government as a result of enforcing or administering the proposed amendments, 
and there will be no effect on local employment or the local economy as a result 
of enforcing or administering the proposed amendments. 
Mr. Anderson has also determined that the public benefit anticipated as a result 
of the adoption of the proposed amendments is to provide additional time for 
building products and materials that meet the windload requirements of the new 
Code to become available in the designated catastrophe areas. Currently, many of 
these products, including shutters, windows, doors and garage doors, are 
available in only limited quantities from a few manufacturers. This shortage of 
products exists despite the efforts of the Department to solicit information 
from all major manufacturers of the many various products so that the products 
could be approved by the Department and available in the coastal areas. Persons 
required to comply with the proposed amendments to sec.5.4007 and sec.5.4008 
will incur no additional costs to those costs that would be incurred under the 
rules as currently adopted. Any person required to comply with the proposed 
amendments to sec.5.4007 and sec.5.4008 who qualifies as a small business under 
the Government Code sec.2006.001 will incur no additional costs to those costs 
that would be incurred under the rules as currently adopted. 
Comments on the proposed amendments must be submitted within 30 days after 
publication of the proposed amendments 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 Program, 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 these proposed amendments. 
The amendments are 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. 
Article 21.49, sec.6A specifies building code requirements and approval or 
inspection procedures for windstorm and hail insurance through the Association. 
Article 21.49, sec.6A(f), Insurance Code, requires the Commissioner to appoint a 
Building Code Advisory Committee to advise and make recommendations to the 
Commissioner on building specifications in the Association's plan of operation 
for structures to be eligible for windstorm and hail insurance through the 
Association. Article 21.49, sec.5(c) of the Insurance Code provides that the 
Commissioner of Insurance by rule shall adopt the Association's plan of 
operation with the advice of the Association's board of directors. Article 
21.49, sec.6A(f) and sec.5(c), by their terms, delegate the foregoing authority 
to the State Board of Insurance. However, under Article 1.02 of the Insurance 
Code, a reference in the Insurance Code or another insurance law to the State 
Board of Insurance means the Commissioner of Insurance or the Texas Department 
of Insurance, as consistent with the respective powers and duties of the 
Commissioner and the Department under Article 1.02. Article 1.03A authorizes the 
Commissioner of Insurance to adopt rules and regulations, which must be for 
general and uniform application, for the conduct and execution of the duties and 
functions of the Texas Department of Insurance only as authorized by a statute. 
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.5.4007. Applicable Building Code Standards in Designated Catastrophe Areas 
for Structures Constructed, Repaired or to Which Additions Are Made Prior to 
<nl>September<ol> [June] 1, 1998.
(a)-(d) (No change.) 

sec.5.4008. Applicable Building Code Standards in Designated Catastrophe Areas 
for Structures Constructed, Repaired or to Which Additions Are Made On and After 
<nl>September<ol> [June] 1, 1998. 
(a) Areas Seaward of the Intracoastal Canal. To be eligible for catastrophe 
property insurance, structures located in designated catastrophe areas which are 
seaward of the Intracoastal Canal and constructed, repaired, or to which 
additions are made on and after <nl>September<ol> [June] 1, 1998, shall comply 
with the Building Code for Windstorm Resistant Construction. The Texas 
Department of Insurance adopts by reference the Building Code for Windstorm 
Resistant Construction, effective <nl>September<ol> [June] 1, 1998. 
(b) Areas Inland of the Intracoastal Canal and Within Approximately 25 Miles of 
the Texas Coastline and east of the Specified Boundary Line and Certain Areas in 
Harris County. 
(1) To be eligible for catastrophe property insurance, structures located in 
designated catastrophe areas specified in paragraph (2)(A) and (B) of this 
subsection and constructed, repaired, or to which additions are made on and 
after <nl>September<ol> [June] 1, 1998, shall comply with the Building Code for 
Windstorm Resistant Construction which is adopted by reference in subsection (a) 
of this section. 
(2) (No change.) 
(c) Areas Inland and West of the Specified Boundary Line. To be eligible for 
catastrophe property insurance, structures located in designated catastrophe 
areas which are west of the boundary line specified in subsection (b)(2)(A) of 
this section and constructed, repaired, or to which additions are made on and 
after <nl>September<ol> [June] 1, 1998; and structures located inside the city 
limits of cities and towns divided by the boundary line specified in subsection 
(b)(2)(A) of this section, and constructed, repaired, or to which additions are 
made on and after <nl>September<ol> [June] 1, 1998, shall comply with the 
Standard Building Code, as amended May 8, 1973, and with the Windstorm Resistant 
Construction Code, which is adopted by reference in sec.5.4007(b) of this title 
(relating to Applicable Building Code Standards in Designated Catastrophe Areas 
for Structures Constructed, Repaired, or to which Additions are Made Prior to 
<nl>September<ol> [June] 1, 1998). These areas include, but are not limited to, 
the areas inside the city limits of the cities of Harlingen, Raymondville, 
Kingsville, Robstown, Sinton, Refugio, Bay City, Friendswood, Alvin, and 
Beaumont. 
(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 May 22, 1998.
TRD-9808423
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-6327

CHAPTER 9. Title Insurance
SUBCHAPTER A. Basic Manual of Rules, Rates and Forms for the
Writing of Title Insurance in the State of Texas
28 TAC sec.9.30
The Texas Department of Insurance has received a petition proposing the adoption 
by reference of a new procedural rule, new endorsement form, and new proposed 
rate rule to the Basic Manual of Rules, Rates and Forms for the Writing of Title 
Insurance in the State of Texas (the Basic Manual). New sec.9.30 would be 
necessary to adopt by reference the proposed rule, rate, and form in the Basic 
Manual. The 75th Legislature adopted House Joint Resolution 31 proposing a 
constitutional amendment allowing home equity liens and reverse mortgages on 
Texas homestead property. By voter approval on November 4, 1997, Section 50, 
Article XVI, Texas Constitution was amended to provide for the extension of 
credit secured by a lien against the title of Texas homestead property. The 
Texas Land Title Association (TLTA) is proposing a new procedural rule and 
endorsement to the Basic Manual to facilitate the issuing of mortgagee title 
policies insuring home equity liens on homestead property. Stewart Title 
Guaranty Company has also submitted amendments to the TLTA submission. The 
proposed endorsement and procedural rule will enable title insurance companies 
to write additional title insurance coverages regarding home equity lending in 
Texas. TLTA is also proposing a new rate rule that will provide for rates for 
the proposed new endorsement and for the Equity Loan Mortgage Endorsement (T-42) 
adopted by the commissioner in docket number 2324, effective January 12, 1998. 
In considering the new rate rule, the commissioner will also consider 
alternatives to the rate formulations proposed in the petition.
The proposed rule is Proposed Procedural Rule P-47 Supplemental Coverage Equity 
Loan Mortgage Endorsement (T-42.1). This rule concerns supplemental coverage to 
the basic mortgagee policy of title insurance and the existing promulgated 
endorsement (T-42). This rule provides the general requirements and limitations 
for the issuance of supplemental coverage in insuring a lien that secures an 
extension of credit made pursuant to subsection (a)(6) of Section 50, Article 
XVI, Texas Constitution. 
The proposed endorsement form is Supplemental Coverage Equity Loan Mortgage 
Endorsement (T-42.1). This form outlines the scope of the supplemental coverage 
in insuring a lien that secures an extension of credit made pursuant to 
subsection (a)(6) of Section 50, Article XVI, Texas Constitution and also states 
the exceptions and limitations of the coverage, including among other things, no 
insurance against invalidity or unenforceability of the lien of the insured 
mortgage arising out of usury or truth in lending laws or any consumer credit 
protection law. 
The proposed rate rule is Proposed Rate Rule R-28 Premium for Equity Loan 
Mortgage Endorsement (T-42) and Supplemental Coverage Equity Loan Mortgage 
Endorsement (T-42.1). This rule sets forth a standardized premium of $300 for 
the proposed new Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) 
and a standardized premium of $100 for the existing form, Equity Loan Mortgage 
Endorsement (T-42) which was adopted by the commissioner in docket number 2324, 
effective January 12, 1998. 
Consideration of the proposed endorsement form and procedural rule will occur in 
a public hearing under Docket Number 2361 scheduled for 9:00 a.m. on July 30, 
1998, in Room 100 of the William P. Hobby, Jr. State Office Building, 333 
Guadalupe Street in Austin, Texas, and consideration of the proposed rate rule 
R-28, including alternatives to the rates proposed, will occur in a public 
hearing under Docket Number 2362, scheduled for 9:00 a.m. on August 12, 1998 in 
Room 100 of the William P. Hobby, Jr. State Office Building, 333 Guadalupe 
Street in Austin, Texas. 
Robert R. Carter, Jr., deputy commissioner for the title insurance division, has 
determined that, for each year of the first five years the proposed new section 
is in effect, there will be no fiscal impact on state or local government as a 
result of enforcing or administering the section. Mr. Carter has also determined 
that there will be no effect on local employment or the local economy.
Mr. Carter has also determined that for each year of the first five years the 
proposed new section is in effect, the public benefit anticipated as a result of 
administering and enforcing the section will be to ensure the appropriate policy 
and endorsement language on title insurance policies covering home equity loans. 
The department expects the public to benefit from the introduction of the 
expanded coverage offered by the proposed endorsement, which is likely to 
facilitate the continued availability of mortgage loan funds in the State of 
Texas. As noted with the current Equity Loan Mortgage Endorsement (T-42), the 
proposed Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) 
requires a search, examination, and determination of various title-related and 
loan-related issues in the home equity provisions of the constitutional 
amendment. The proposed premium charges relate to the services actually rendered 
as well as the risk assumed by the issuance of the endorsement. The department 
expects the premium rate of $300 for the proposed endorsement to fully cover the 
costs of producing such endorsement. Regarding the proposed premium for the 
existing Equity Loan Mortgage Endorsement (T-42), the proposed premium comes 
after several months of experience by the title industry in dealing with this 
endorsement. The department expects the premium rate of $100 for the existing 
endorsement to fully cover the costs of producing such endorsement. The rates as 
stated may or may not be adopted as the commissioner will also consider 
alternatives to the rate formulations proposed. The sale of such endorsements is 
voluntary and imposes no additional regulatory costs on companies that decide to 
participate in the market. Furthermore, the department anticipates that the 
premium schedules will fully compensate both small and large companies and, 
therefore, expects no differential impact between small and large companies that 
decide to participate in such sales. Accordingly, there is no anticipated 
economic cost to individuals or business entities who are required to comply 
with the section as proposed. 
Comments on the proposed section must be submitted within 30 days after 
publication in the Texas Register to Caroline Scott, Chief Clerk, Texas 
Department of Insurance, P. O. Box 149104, Mail Code 113-1C, Austin, Texas 
78714-9104. An additional copy of the comment should be submitted to Robert R. 
Carter, Jr., Deputy Commissioner of Title, Mail Code 106-1T, Texas Department of 
Insurance, P. O. Box 149104, Austin, Texas 78714-9104. The department has filed 
a copy of the proposed section, which adopts by reference amendments to the 
Basic Manual, with the Secretary of State's Texas Register Section. Persons 
desiring copies can obtain them from the Texas Department of Insurance, Title 
Insurance Section, Mail Code 106-1T, P. O. Box 149104, Austin, Texas 78714-9104. 
This new section is proposed pursuant to the Insurance Code, Articles 9.07, 
9.21, and 1.03A and Section 50, Article XVI, Texas Constitution. Article 9.07 
authorizes and requires the commissioner to promulgate or approve rules and 
policy forms of title insurance and otherwise to provide for the regulation of 
the business of title insurance. Article 9.21 authorizes the commissioner to 
promulgate and enforce rules and regulations prescribing underwriting standards 
and practices, and to promulgate and enforce all other rules and regulations 
necessary to accomplish the purposes of chapter 9, concerning regulation of 
title insurance. Article 1.03A authorizes the commissioner to adopt rules and 
regulations for the conduct and execution of the duties and functions of the 
department as authorized by statute. By voter approval on November 4, 1997, 
Section 50, Article XVI, Texas Constitution was amended to permit an encumbrance 
against homestead property for certain extensions of equity credit. 
The following statutes are affected by this proposal: Insurance Code, Articles 
9.07 and 9.21 

sec.9.30. Procedural Rule, Rate, and Form for Supplemental Coverage Equity Loan 
Mortgage Endorsement (T-42.1) and Rate for Equity Loan Mortgage Endorsement (T-
42). 
In addition to material adopted by reference under sec.9.1 of this title 
(relating to Basic Manual of Rules, Rates and Forms for the Writing of Title 
Insurance in the State of Texas (the manual)), the Texas Department of Insurance 
adopts by reference, as part of the manual, Procedural Rule P-47 and endorsement 
form T-42.1 for Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) 
and Rate Rule 28 Premium for Equity Loan Mortgage Endorsement (T-42) and 
Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1). This document 
is available from and on file at the Texas Department of Insurance, Title 
Insurance Section, Mail Code 106-1T, William P. Hobby State Office Building, 333 
Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104. 
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 May 22, 1998.
TRD-9808470
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-6327

CHAPTER 19. Agent's Licensing 
SUBCHAPTER V. Registration of Full Time Home Office Salaried Employees
28 TAC sec.sec.19.3001-19.3006
The Texas Department of Insurance proposes new Subchapter V, sec.sec.19.3001-
19.3006, concerning the registration of any full-time home office salaried 
employee who solicits or receives an application for the sale of insurance. The 
new subchapter defines the terms used in Insurance Code Article 21.14, sec.20A, 
enacted by the 75th Legislature, and clarifies who must register with the 
commissioner. Section 19.3001 states that the purpose of these rules is to 
implement the registration requirements found in Insurance Code Article 21.14 
sec.20A. Section 19.3002 defines terms used in the subchapter. Section 19.3003 
sets forth the registration requirements and provides instructions regarding 
employees previously licensed and/or registered as special agents. Section 
19.3004 identifies when registration is required and states the registration 
requirements of the new subchapter will not affect full-time home office 
salaried employees who do not solicit or receive applications for the sale of 
insurance. Section 19.3005 sets forth the requirement that an insurance carrier 
provide for the use of full-time home office salaried employees in its general 
plan of operation. Section 19.3006 sets forth the requirements for continuing 
education. The requirements contained in the new subchapter reflect the purpose 
of the 75th Legislature in enacting Article 21.14, sec.20A, which was, in part, 
to address the problem of licensing provisions not applying equally to all 
persons engaged in the solicitation of insurance in this state. 
Rose Ann Reeser, associate commissioner, Regulation & Safety Division, has 
determined that for each year of the first five years the proposed sections will 
be in effect, there will be a moderate fiscal implication for state government 
in that the initial cost to administer the new registration will be 
approximately $150,000. This amount is based upon an estimate of 3,000 initial 
registrations. The annual costs of administration thereafter are estimated to be 
$15,000 and are based upon a 10% turnover rate per annum. There will be no 
fiscal implications for local government as a result of enforcing or 
administering this subchapter. 
Ms. Reeser has also determined that for each year of the first five years the 
proposed sections are in effect, there will be a benefit to the public in that 
Texas consumers will be assured that their insurance purchases will be 
transacted through comparably trained individuals who are subject to regulation 
by the Department of Insurance. The specific registration required by the 
proposed sections will result in more effective regulation of the solicitation 
or sale of insurance in Texas. The public will also benefit from the result that 
regulation will apply more equally to all persons involved in the solicitation 
or sale of property and casualty insurance. Ms. Reeser estimates that the 
majority of costs to comply with the proposed subchapter result from the 
legislative enactment of the Insurance Code Article 21.14, sec.20A. The 
department anticipates that the majority of insurance carriers will use an 
external course provider to meet the continuing education requirements contained 
in the Insurance Code Article 21.14, sec.20A and proposed sec.19.3006. The 
probable economic cost to insurance carriers who must register full-time home 
office salaried employees is between $10 and $15 per course hour for each 
registered employee, plus a minimal cost to submit an application for each 
employee seeking registration. Since continuing education fees are charged per 
student, on the basis of cost per employee there is no anticipated difference in 
cost of compliance between small and large insurers. To the extent that large 
insurers incur costs at the lower range and small insurers incur costs at the 
upper range, there is a minor differential market impact on smaller insurers' 
unit cost of production. To the extent that small insurers incurring this 
differential compete in market niches in which large insurers do not serve, the 
differential impact is eliminated. In other markets, the cost increases as a 
percent of unit policy cost are sufficiently insignificant as to be meaningless 
to potential consumers of each insurer's product. The requirements of 
registration and continuing education in proposed Subchapter V are mandated by 
the underlying statute, and cannot be waived for small businesses. 
Comments on the proposal, to be considered by the department, must be submitted 
in writing, within 30 days after publication of the proposal in the Texas 
Register, to Caroline Scott, General Counsel & Chief Clerk, Texas Department of 
Insurance, P.O. Box 149104, Mail Code 113-1C, Austin, Texas 78714-9104. An 
additional copy of the comments must be submitted to William Elkjer, Deputy 
Commissioner, Licensing Group, Regulation & Safety Division, Texas Department of 
Insurance, P.O. Box 149104, MC 107-1A, Austin, Texas 78714-9104. Request for a 
public hearing should be submitted separately to the Chief Clerk's office.
The new subchapter is proposed under the Insurance Code Articles 21.14, sec.20A 
and 1.03A. Insurance Code Article 21.14, sec.20A requires the commissioner to 
adopt rules to implement registration requirements for full-time home office 
salaried employees. Article 1.03A provides that the commissioner may adopt rules 
and regulations to execute the duties and functions of the Texas Department of 
Insurance only as authorized by a statute.
The following statute is affected by the proposed new subchapter: Insurance 
Code, Article 21.14. 

sec.19.3001. Purpose and Scope.
(a) Purpose. The purpose of this subchapter is to implement the registration of 
full-time home office salaried employees as prescribed by the Insurance Code 
Article 21.14, sec.20A, which was enacted in 1997 by the Acts of the 75th 
Legislature and which first became effective on September 1, 1997. 
(b) Severability. Where any terms or sections of this subchapter are determined 
by a court of competent jurisdiction to be inconsistent with any statutes of 
this state or these United States, or to be unconstitutional, the remaining 
terms and provisions of this subchapter shall remain in effect.

sec.19.3002. Definitions. 
The following words and terms, when used in this subchapter shall have the 
following meanings, unless the context clearly indicates otherwise. 
(1) Commissioner - The commissioner of insurance. 
(2) Department - Texas Department of Insurance. 
(3) Full-time - Employment status requiring the efforts of an employee in the 
business of insurance be devoted solely to the insurance carrier for whom the 
employee seeks registration under the Insurance Code Article 21.14, sec.20A. 
(4) Home office - Permanent primary work site of insurance carriers utilizing 
full-time salaried employees pursuant to their general plan of operation. 
(5) Insurance carrier - An insurance company licensed to do business in Texas 
whose general plan of operation includes the sale of its policies directly 
through salaried employees. 
(6) Salaried employee - A person compensated by the home office of the insurance 
carrier on a salaried basis who does not receive commissions.

sec.19.3003. Registration Requirements.
(a) A person may not act as, or hold himself, or herself, out to be, a 
registered full-time home office salaried employee unless the person meets the 
requirements of the Insurance Code Article 21.14, sec.20A, and this subchapter 
and is registered by the commissioner. 
(b) To register as a full-time home office salaried employee, each applicant 
must submit a completed application which must include the certification of an 
insurance carrier, whose general plan of operation includes the use of full-time 
home office salaried employees to solicit or receive an application for the sale 
of insurance, that the applicant qualifies for registration under the Insurance 
Code Article 21.14, sec.20A and receives continuing education of not less than 
15 hours per year. 
(c) Any full-time home office salaried employee who solicits or receives an 
application for the sale of insurance who has previously been registered under 
the authority of the Insurance Code Articles 21.09 and 21.14, sec.20(a) must 
register pursuant to the Insurance Code Article 21.14, sec.20A and this 
subchapter. 
(d) A registrant may only represent one insurance carrier and its affiliated 
insurers. 
(e) When an insurance carrier no longer wishes a registrant to represent it, or 
the registrant no longer qualifies as a full-time home office salaried employee 
as defined in this subchapter, the insurance carrier must submit a termination 
notice to the department within 30 days of termination.

sec.19.3004. When Registration is Required. 
(a) Registration of an employee is required if the person:
(1) solicits insurance through an oral, written, or electronic communication; or 
(2) receives information to complete an application that results in the eventual 
culmination of a sale of insurance through an oral, written, or electronic 
communication. 
(b) Registration is not required if salaried employees are not involved in the 
solicitation or acceptance of an application for the sale of insurance and 
devote their full time to clerical and administrative services, including the 
incidental taking of information from customers and receipt of premiums. 

sec.19.3005. General Plan of Operation Requirements. 
(a) Any insurance carrier that intends on using full-time home office salaried 
employees to solicit or receive an application for the sale of insurance must 
include such intent in its general plan of operation filed with the department 
with its certificate of authority. 
(b) The general plan of operation must designate the specific location of the 
home office. 
(c) An insurance carrier may amend it's general plan of operation to include the 
use of full-time home office salaried employees to solicit or receive 
applications for the sale of insurance by submitting an amended general plan of 
operation to Insurer Services, Texas Department of Insurance, 333 Guadalupe, 
Austin, Texas 78701. 

sec.19.3006. Continuing Education Requirements.
(a) Employees registered under the Insurance Code Article 21.14, sec.20A shall 
complete continuing education of not less than fifteen hours per year as 
stipulated by the Insurance Code Article 21.14, sec.20A(b). At least four hours 
of courses in insurance regulation and ethics must be completed within the first 
two years of registration. 
(b) Continuing education of registered employees must include instruction 
regarding disclosure when making an oral, written, or electronic communication 
to solicit or receive an application for the sale of insurance that the employee 
is not a licensed agent, but an employee of the insurance carrier registered 
with the commissioner. 
(c) All continuing education records, rosters, and course materials of insurance 
carriers shall be maintained for at least four years for each employee and are 
subject to review by the department at any time.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 21, 1998.
TRD-9808339
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-6327

TITLE 30. ENVIRONMENTAL QUALITY
PART I. Texas Natural Resource Conservation Commission
CHAPTER 37. Financial Assurance
SUBCHAPTER A. General Financial Assurance Requirements
30 TAC sec.37.11, sec.37.52
The Texas Natural Resource Conservation Commission (commission) proposes an 
amendment to sec.37.11 and new sec.37.52, concerning Use of a Universal 
Financial Assurance Mechanism for Multiple Facilities and Program Areas. 
EXPLANATION OF PROPOSED RULE. The proposed new rule in sec.37.52 will allow the 
adoption of a financial assurance option that will cross commission program 
lines by allowing a permittee, licensee or registrant to demonstrate financial 
assurance obligations through one mechanism. The proposed rule will give the 
regulated community another option when complying with financial responsibility. 
A universal mechanism reduces the number of financial assurance mechanisms 
required to comply with financial responsibility. However, it is not intended to 
reduce the total dollar amount of financial assurance required to be 
demonstrated for any commission program area that requires a permitted, licensed 
or registered facility to demonstrate financial assurance. A definition of 
program area is added to sec.37.11. For the purpose of the new section, program 
area means the specific commission area under which the facility is permitted, 
licensed or registered to operate. Program areas include, but are not limited 
to, Industrial and Hazardous Waste, Underground Injection Control, Municipal 
Solid Waste, or Petroleum Storage Tanks. 
Proposed new sec.37.52 concerning Use of a Universal Financial Assurance 
Mechanism for Multiple Facilities and Program Areas, adds the option of a 
universal financial assurance mechanism for owners or operators of facilities 
which are authorized by rules from more than one program area of the commission. 
The anniversary date of the universal mechanism as specified in new sec.37.52 is 
the date on which owners or operators shall adjust the financial assurance for 
inflation for all facilities demonstrating through the universal mechanism.
FISCAL NOTE. Stephen Minick, Strategic Planning and Appropriations Division, has 
determined that for each year of the first five-year period the proposed 
sections are in effect, there will be no significant costs to state government 
or units of local government as a result of administration or enforcement of 
these sections.
PUBLIC BENEFIT. Mr. Minick has also determined that for each year of the first 
five years the proposed sections are in effect, the public benefit anticipated 
as a result of enforcement of and compliance with the sections will not change. 
The effect on owners or operators of facilities subject to these sections will 
be a potential reduction in cost as a result of the option to have a universal 
financial assurance mechanism. These cost savings may represent a savings for 
any person affected by the proposed rules or a part of the costs of any project. 
The potential cost savings will affect small businesses on the same basis as any 
larger business. There are no economic costs anticipated for any owners or 
operators required to comply with these sections as proposed.
REGULATORY IMPACT ANALYSIS. The commission has reviewed the rulemaking in light 
of the regulatory analysis requirements of Texas Government Code sec.2001.0225 
and has determined that the rulemaking is not subject to sec.2001.0225 because 
it does not meet the definition of a"major environmental rule" as defined in the 
act inasmuch as the rule will merely offer an additional option for financial 
assurance, and it does not meet any of the four applicability requirements 
listed in sec.2001.0225(a). 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule proposal pursuant to Texas Government Code, 
sec.2007.043.
The following is a summary of that assessment. The purpose of this rulemaking is 
to modify Chapter 37 to reflect the addition of a universal financial assurance 
option to cross multiple program areas and facilities allowing a permittee, 
licensee, or registrant to demonstrate financial assurance obligations through 
one mechanism. The promulgation and enforcement of these rules will not burden 
private real property nor adversely affect property values because the proposed 
rule will not reduce the amount of financial assurance required to be 
demonstrated by any one facility or in any one program area. 
COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW. The commission has determined 
that this rulemaking action is not subject to the Texas Coastal Management 
Program (CMP) in accordance with the Coastal Coordination Act of 1991, as 
amended (Texas Natural Resources Code, sec.sec.33.201 et. seq.), the rules of 
the Coastal Coordination Council (31 TAC Chapters 501-506), and the commission's 
rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with the Texas 
Coastal Management Program. 
PUBLIC HEARING. A public hearing on this proposal will be not be held unless one 
is requested. 
SUBMITTAL OF COMMENTS. Written comments regarding this proposal and request for 
alternatives may be mailed to Bettie Bell, Office of Policy and Regulatory 
Development, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 
239-4808, but must be followed up with the submission and receipt of the written 
comments within three working days of when they were faxed. All comments should 
reference Rule Log Number 97167-037-WS. Comments must be received by 5:00 p.m., 
July 6, 1998. For further information or questions concerning this proposal, 
contact Linda Shirck of the Financial Administration Division, Office of 
Administrative Services, (512) 239-6260. 
STATUTORY AUTHORITY. The new and amended sections are proposed under Texas Water 
Code, sec.5.103 and sec.5.105, and Texas Health and Safety Code, 
sec.sec.361.011, 361.017, and 361.024, which authorize the commission to adopt 
any rules necessary to carry out its powers and duties under the Water Code and 
other laws of Texas and to establish and approve all general policy of the 
commission. 
The proposed new and amended sections implement Texas Health and Safety Code, 
sec.361.085 and Texas Water Code, sec.26.352. 

sec.37.11. Definitions. 
The following words and terms when used in the chapter shall the following 
meaning, unless the context clearly indicates otherwise. 
<nl>(1)<ol> Assets--All existing and all probable future economic benefits 
obtained or controlled by a particular entity. 
<nl>(2)<ol> Current assets--Cash or other assets or resources commonly 
identified as those which are reasonably expected to be realized in cash or sold 
or consumed during the normal operating cycle of the business. 
<nl>(3)<ol> Current closure cost estimate--The most recent of the estimates 
prepared for closure and approved by the executive director. 
<nl>(4)<ol> Current liabilities--Obligations whose liquidation is reasonably 
expected to require the use of existing resources properly classifiable as 
current assets or the creation of other current liabilities.
<nl>(5)<ol> Current plugging and abandonment cost estimate--The most recent of 
the estimates prepared in accordance with Chapter 331 of this title (relating to 
Underground Injection Control). 
<nl>(6)<ol> Face amount--The total amount the insurer is obligated to pay under 
an insurance policy. 
<nl>(7)<ol> Financial responsibility--This term shall mean the same as financial 
assurance. 
<nl>(8)<ol> Independent audit--An audit performed by an independent certified 
public accountant in accordance with generally accepted auditing standards. 
<nl>(9)<ol> Liabilities--Probable future sacrifices of economic benefits arising 
from present obligations to transfer assets or provide services to other 
entities in the future as a result of past transactions or events. 
<nl>(10)<ol> Net working capital--Current assets minus current liabilities. 
<nl>(11)<ol> Net worth--Total assets minus total liabilities and equivalent to 
owner's equity. 
<nl>(12)<ol> Program area - TNRCC areas under which the facility is permitted, 
licensed or registered to operate, including but not limited to Industrial and 
Hazardous Waste, Underground Injection Control, Municipal Solid Waste, or 
Petroleum Storage Tanks. 
<nl>(13)<ol> Standby trust - An unfunded trust established to meet the 
requirements of this chapter. 
<nl>(14)<ol> Tangible net worth - The tangible assets that remain after 
deducting liabilities; such assets would not include intangibles such as 
goodwill and rights to patents or royalties. 

sec.37.52. Use of An Universal Financial Assurance Mechanism for Multiple 
Facilities and Program Areas. 
An owner or operator may use a universal mechanism to meet the requirements of 
this chapter for multiple facilities permitted, licensed or registered in 
multiple program areas, provided the mechanism is allowed to be used in the 
program areas represented. The amount of funds demonstrated by the universal 
mechanism must be no less than the sum of funds that would be available if 
separate mechanisms were established and maintained. The wording of the 
mechanisms must be in a form satisfactory to the executive director. The 
available mechanisms are those specified in Subchapter C of this chapter 
(relating to Financial Assurance Mechanisms for Closure) and Subchapter F of 
this chapter (relating to Financial Assurance Mechanisms for Liability), except 
that the financial test or corporate guarantee may not be combined with other 
specified mechanisms and a standby trust fund shall be required in certain 
circumstances. A universal mechanism submitted to the executive director shall 
include a list showing for each facility covered by the mechanism: the name, 
physical and mailing address of the facility, each program area and commission 
registration, license or permit number, the rules regulating the program under 
which the facility is permitted, licensed or registered, and the amount of funds 
demonstrated for each permit, license or registration for closure, post closure, 
corrective action, liability, and decommissioning. The anniversary date of the 
universal mechanism is the date on which owners or operators shall make an 
annual inflation adjustment for all facilities demonstrating through the 
universal mechanism. In directing funds available through the universal 
mechanism for any of the facilities covered by the mechanism, the executive 
director may direct only the amount of funds designated for each permit or 
registration for that 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 May 22, 1998.
TRD-9808421
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 239-6087

CHAPTER 115. Control of Air Pollution from Volatile Organic Compounds
SUBCHAPTER G. Consumer-Related Sources
<nl>Division 1.<ol> Consumer Products
30 TAC sec.115.600
The Texas Natural Resource Conservation Commission (commission) proposes to 
amend sec.115.600, concerning Definitions. 
EXPLANATION OF PROPOSED RULE. This amendment is proposed to amend the 
commission's consumer products rule to exclude a new type of insecticide 
designed to kill house dust mites from the volatile organic compound (VOC) 
limitation applicable to other crawling bug insecticides. The insecticide 
formulation necessary to kill house dust mites requires that the VOC content 
exceed the limitation contained in sec.115.612(a). The amendment adds language 
to the sec.115.600 definition of "crawling bug insecticide" to differentiate a 
"house dust mite" from other crawling bugs and a "house dust mite product" from 
crawling bug insecticides. This rule amendment will permit the sale of such 
products in Texas. The amendment will also number the individual definitions in 
the section to conform to new Texas Register standards. 
FISCAL NOTE. Stephen Minick, Strategic Planning and Appropriations, has 
determined that for the first five-year period the new section as proposed is in 
effect, there will be no significant fiscal implications for state or local 
government as a result of administration or enforcement of the section.
PUBLIC BENEFIT. Mr. Minick 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 enforcement of and compliance with the section will be expansion 
of markets for the sale of dust mite insecticides in Texas and the resulting 
benefits to consumers and users from control of insects by these insecticides. 
There are no anticipated economic costs to any person, including any small 
business, required to comply with the section as proposed.
DRAFT REGULATORY IMPACT ANALYSIS. The commission has reviewed the proposed 
rulemaking in light of the regulatory analysis requirements of Texas Government 
Code (the Code), sec.2001.0225, and has determined that the rulemaking is not 
subject to sec.2001.0225 because it does not meet the definition of a "major 
environmental rule" as defined in the Code, and it does not meet any of the four 
applicability requirements listed in sec.2001.0225(a).
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule under Texas Government Code, sec.2007.043. The 
following is a summary of that assessment. The specific purpose of this 
rulemaking is to differentiate a "house dust mite" from other crawling bugs and 
a "house dust mite product" from crawling bug insecticides to exclude house dust 
mite insecticides from the VOC limitation contained in the subchapter. This 
proposal does not constitute a taking of private, real property. 
COASTAL MANAGEMENT PLAN. The commission has determined that this proposed 
rulemaking action is subject to the Texas Coastal Management Program (CMP) in 
accordance with the Coastal Coordination Act of 1991, as amended (Tex. Nat. Res. 
Code Ann. sec.33.201 et. seq.), the rules of the Coastal Coordination Council 
(31 TAC Chapters 501-506), and the TNRCC's rules in 30 TAC Chapter 281, 
Subchapter B, Consistency with the Texas Coastal Management Program. As required 
by 31 TAC sec.505.11(b)(2) and sec.505.22(a), and 30 TAC sec.281.45(a)(3) 
relating to actions and rules subject to the CMP, agency rules governing air 
pollutant emissions must be consistent with applicable CMP goals and policies. 
The commission has reviewed this proposed rulemaking action for consistency, and 
has determined that this proposed rulemaking action is consistent with the 
applicable CMP goals and policies. The CMP policy applicable to this rulemaking 
action is the policy that commission rules comply with regulations at Title 40, 
Code of Federal Regulations (40 CFR), to protect and enhance air quality in the 
coastal area (31 TAC sec.501.14(q)). This proposal does not change existing 
requirements which already comply with regulations at 40 CFR, and is therefore 
consistent with this policy. 
Interested persons may submit comments on the consistency of the proposed rule 
with the CMP goals and policies during the public comment period. 
PUBLIC HEARING. A public hearing on this proposal will be held on June 29, 1998, 
at 11:00 a.m. in Room 5108 of Texas Natural Resource Conservation Commission 
Building F, located at 12100 Park 35 Circle, Austin. The hearing is structured 
for the receipt of oral or written comments by interested persons. Individuals 
may present oral statements when called upon in order of registration. Open 
discussion will not occur during the hearing; however, an agency staff member 
will be available to discuss the proposal 30 minutes prior to each hearing and 
will answer questions before and after the hearing. 
SUBMITTAL OF COMMENTS. Written comments may be mailed to Heather Evans, Office 
of Policy and Regulatory Development, MC 205, P.O. Box 13087, Austin, Texas 
78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log 
Number 98015-115-AI. Comments must be received by 5:00 p.m., July 6, 1998. For 
further information, please contact Randy Hamilton, (512) 239-1512, or Steve 
Ortiz, (512) 239-2008, of the Air Policy and Regulations Division. Persons with 
disabilities who have special communication or other accommodation needs who are 
planning to attend the hearing should contact the agency at (512) 239-4900. 
Requests should be made as far in advance as possible. 
STATUTORY AUTHORITY. The amendment is proposed under the Texas Health and Safety 
Code, the Texas Clean Air Act (TCAA), sec.382.012 and sec.382.017. Section 
382.012 requires the commission to prepare and develop a general, comprehensive 
plan for the proper control of the state's air. Section 382.017 authorizes the 
commission to adopt rules consistent with the policy and purposes of the TCAA. 
The proposed amendment implements Health and Safety Code, sec.382.012.

sec.115.600. Definitions. 
Unless specifically defined in the Texas Clean Air Act (TCAA) or in the rules of 
the Texas Natural Resource Conservation Commission (Commission), the terms used 
by the Commission have the meanings commonly ascribed to them in the field of 
air pollution control. In addition to the terms which are defined by the TCAA, 
the following terms, when used in this subchapter, shall have the following 
meanings, unless the context clearly indicates otherwise.
<nl>(1)<ol> Aerosol product - A pressurized spray system that dispenses product 
ingredients by means of a propellant or mechanically induced force. This does 
not include pump sprays. 
<nl>(2)<ol> Agricultural use - The use of any pesticide or method or device for 
the control of pests in connection with the commercial production, storage, or 
processing of any animal or plant crop. This does not include the sale or use of 
pesticides in properly labeled packages or containers which are intended for 
home use, use in structural pest control, industrial use, or institutional use. 
The following are for the purposes of this subchapter only. 
(A) Home use means use in a household or its immediate environment.
(B) Structural pest control means a use requiring a license under the Texas 
Structural Pest Control Act, Article 135B-6. 
(C) Industrial use means use for or in a manufacturing, mining, or chemical 
process, or use in the operation of factories, processing plants, and similar 
sites. 
(D) Institutional use means use within the confines of, or on property necessary 
for the operation of buildings such as hospitals, schools, libraries, 
auditoriums, and office complexes. 
<nl>(3)<ol> Air freshener - Any consumer product including, but not limited to, 
sprays, wicks, powders, and crystals, designed for the purpose of masking odors, 
or freshening, cleaning, scenting, or deodorizing the air. This does not include 
products that are used on the human body, products that function primarily as 
cleaning products, or disinfectant products claiming to deodorize by killing 
germs on surfaces. It does include spray disinfectants and other products that 
are expressly represented for use as air fresheners. To determine whether a 
product is an air freshener, all verbal and visual representations regarding 
product use on the label and packaging, and in the product's literature and 
advertising may be considered. The presence of and representations about a 
product's fragrance and ability to deodorize (resulting from surface 
application) shall not constitute a claim of air freshening.
<nl>(4)<ol> All other forms - All consumer product forms for which no form-
specific volatile organic compound (VOC) standard is specified in sec.115.612(a) 
of this title (relating to Control Requirements). Unless specified otherwise by 
the applicable VOC standard, this includes, but is not limited to, solids, 
liquids, wicks, powders, crystals, and cloth or paper wipes (towelettes). 
<nl>(5)<ol> Antiperspirant - Any product including, but not limited to, 
aerosols, roll-ons, sticks, pumps, pads, creams, and squeeze-bottles, that is 
intended by the manufacturer to be used to reduce perspiration in the human 
axilla by at least 20% in at least 50% of a target population. 
<nl>(6)<ol> ASTM - The American Society for Testing and Materials. 
<nl>(7)<ol> Automotive windshield washer fluid - Any liquid designed for use in 
a motor vehicle windshield washer fluid system either as an anti-freeze or for 
the purpose of cleaning, washing, or wetting the windshield(s). This does not 
include any fluid which is placed in the washer fluid system of a motor vehicle 
prior to the time of initial sale.
<nl>(8)<ol> Bait station insecticide - A container enclosing an insecticidal 
bait, where the bait is designed to be ingested by insects and is composed of 
solid material feeding stimulants with less than 5.0% active ingredients. 
<nl>(9)<ol> Bathroom and tile cleaner - A product designed to clean tile or 
surfaces in bathrooms. This does not include products specifically designed to 
clean toilet bowls or toilet tanks. 
<nl>(10)<ol> Carburetor-choke cleaner - A product designed to remove dirt and 
other contaminants from a carburetor. This does not include products designed to 
be introduced directly into the fuel lines or fuel storage tank prior to 
introduction into the carburetor. 
<nl>(11)<ol> Charcoal lighter material - Any combustible material designed to be 
applied on, incorporated in, added to, or used with charcoal to enhance 
ignition. This does not include any of the following:
(A) electrical starters and probes, 
(B) metallic cylinders using paper tinder, 
(C) natural gas, and 
(D) propane. 
<nl>(12)<ol> Construction and panel adhesive - Any one-component household 
adhesive having gap filling capabilities, and which distributes stress 
throughout the bonded area resulting in a reduction or elimination of mechanical 
fasteners. These materials are applied from caulking cartridges. 
<nl>(13)<ol> Consumer - Any person who purchases or acquires any consumer 
product for personal, family, household, or institutional use. Persons acquiring 
a consumer product for resale are not considered consumers of that product. 
<nl>(14)<ol> Consumer product - Any substance, product, or article, held by any 
consumer, the use, consumption, storage, disposal, or destruction of which may 
result in the release of <nl>VOCs <ol> [volatile organic compounds]. This does 
not include fuels, fuel additives, motor vehicles, non-road vehicles, non-road 
engines, or architectural coatings.
<nl>(15)<ol> Contact adhesive - Any household adhesive that: 
(A) is nitrile-based, or contains polychlorobutadiene (neoprene, chloroprene, 
bayprene), or latex; and 
(B) when applied to two substrates, forms an instantaneous, non-repositionable 
bond; and 
(C) when dried to touch, exhibits a minimum 30-minute bonding range; and 
(D) bonds only to itself without the need for reactivation by solvents or heat. 
<nl>(16)<ol> Container/packaging - The part or parts of the consumer or 
institutional product which serve only to contain, enclose, incorporate, 
deliver, dispense, wrap, or store the chemically formulated substance or mixture 
of substances which is solely responsible for accomplishing the purposes for 
which the product was designed or intended. This includes any article onto or 
into which the principal display panel is incorporated, etched, printed, or 
attached. 
<nl>(17)<ol> Cooking spray aerosols - Any aerosol product designed either to 
reduce sticking on cooking and baking surfaces or to be applied on food, or 
both. 
<nl>(18)<ol> Crawling bug insecticide - Any insecticide product that is designed 
for use against ants, cockroaches, or other household crawling arthropods, 
including, but not limited to, mites, silverfish, or spiders. This does not 
include products designed to be used exclusively on humans or animals<nl>, or 
any house dust mite product For the purposes of this definition only:<ol> 
<nl>(A)<ol> House dust mite product - a product whose label, packaging, or 
accompanying literature states that the product is suitable for use against 
house dust mites, but does not indicate that the product is suitable for use 
against ants, cockroaches, or other household crawling arthropods. 
<nl>(B)<ol> House dust mite - mites which feed primarily on skin cells shed in 
the home by humans and pets and which belong to the phylum Arthropoda, the 
subphylum Chelicerata, the class Arachnida, the subclass Acari, the order 
Astigmata, and the family Pyroglyphidae. 
<nl>(19)<ol> Deodorant - Any product including, but not limited to, aerosols, 
roll-ons, sticks, pumps, pads, creams, and squeeze-bottles, that is intended by 
the manufacturer to be used to minimize odor in the human axilla by retarding 
the growth of bacteria which cause the decomposition of perspiration. 
<nl>(20)<ol> Disinfectant - Any product intended to destroy or irreversibly 
inactivate infectious or other undesirable bacteria, pathogenic fungi, or 
viruses on surfaces or inanimate objects and whose label is registered under the 
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA, 7 United States Code 
<nl>(USC) sec.<ol>136, et seq.). This does not include any of the following: 
(A) products designed solely for use on humans or animals;
(B) products designed for agricultural use; 
(C) products designed solely for use in swimming pools, therapeutic tubs, or hot 
tubs; and 
(D) products which, as indicated on the principal display panel or label, are 
designed primarily for use as bathroom and tile cleaners, glass cleaners, 
general purpose cleaners, toilet bowl cleaners, or metal polishes.
<nl>(21)<ol> Distributor - Any person to whom a consumer product is sold or 
supplied for the purposes of resale or distribution in commerce, except that 
manufacturers, retailers, and consumers are not distributors.
<nl>(22)<ol> Double-phase aerosol air freshener - An aerosol air freshener with 
the liquid contents in two or more distinct phases that requires the product 
container be shaken before use to mix the phases, producing an emulsion. 
<nl>(23)<ol> Dusting aid - A product designed to assist in removing dust and 
other soils from floors and other surfaces without leaving a wax or silicone-
based coating. This does not include products which consist entirely of 
compressed gases for use in electronic or other specialty areas.
<nl>(24)<ol> Engine degreaser - A cleaning product designed to remove grease, 
grime, oil, and other contaminants from the external surfaces of engines and 
other mechanical parts. 
<nl>(25)<ol> Executive director - The executive director of the Texas Natural 
Resource Conservation Commission, or his or her delegate.
<nl>(26)<ol> Fabric protectant - A product designed to be applied to fabric 
substrates to protect the surface from soiling from dirt and other impurities or 
to reduce absorption of water into the fabric's fibers. This does not include 
silicone-based products whose function is to provide water repellency, or 
products designed for use solely on fabrics which are labeled "for dry clean 
only" and sold in containers of ten fluid ounces or less. 
<nl>(27)<ol> Flea and tick insecticide - Any insecticide product that is 
designed for use against fleas, ticks, their larvae, or their eggs; not 
including products that are designed to be used exclusively on humans or animals 
and their bedding. 
<nl>(28)<ol> Flexible flooring material - Asphalt, cork, linoleum, no-wax, 
rubber, seamless vinyl, and vinyl composite flooring.
<nl>(29)<ol> Floor polish or wax - A wax, polish, or any other product designed 
to polish, protect, or enhance floor surfaces by leaving a protective coating 
that is designed to be periodically replenished. This does not include spray 
buff products, products designed solely for the purpose of cleaning floors, 
floor finish strippers, products designed for unfinished wood floors, or 
coatings subject to architectural coatings regulations.
<nl>(30)<ol> Flying bug insecticide - Any insecticide product that is designed 
for use against flying insects or other flying arthropods, including, but not 
limited to, flies, mosquitoes, moths, or gnats. This does not include wasp and 
hornet insecticide, or products that are designed to be used exclusively on 
humans or animals. 
<nl>(31)<ol> Fragrance - A substance or complex mixture of aroma chemicals, 
natural essential oils, and other functional components with a combined vapor 
pressure not in excess of two millimeters mercury at 20 degrees Centigrade, 
which is added to a consumer product to impart an odor or scent or to counteract 
a malodor. 
<nl>(32)<ol> Furniture maintenance product - A wax, polish, conditioner, or any 
other product designed for the purpose of polishing, protecting, or enhancing 
finished wood surfaces other than floors. This does not include dusting aids, 
products designed solely for the purpose of cleaning, and products designed to 
leave a permanent finish such as stains, sanding sealers, and lacquers. 
<nl>(33)<ol> Gel - A colloid in which the disperse phase has combined with the 
continuous phase to produce a semisolid material, such as jelly. 
<nl>(34)<ol> General purpose adhesive - Any non-aerosol household adhesive 
designed for use on a variety of substrates, not including contact adhesives or 
construction and panel adhesives. 
<nl>(35)<ol> General purpose cleaner - A product designed for general all-
purpose cleaning, in contrast to cleaning products designed to clean specific 
substrates in certain situations. This includes products designed for general 
floor cleaning, kitchen or countertop cleaning, and cleaners designed to be used 
on a variety of hard surfaces. This does not include non-water-based degreasers. 
<nl>(36)<ol> Glass cleaner - A cleaning product designed primarily for cleaning 
surfaces made of glass. This does not include products designed solely for the 
purpose of cleaning optical materials used in eyeglasses, photographic 
equipment, scientific equipment, or photocopying machines. 
<nl>(37)<ol> Hairspray - A consumer product designed primarily for the purpose 
of dispensing droplets of a resin on and into a hair coiffure which will impart 
sufficient rigidity to the coiffure to establish or retain the style for a 
period of time. 
<nl>(38)<ol> Hair mousse - A hairstyling foam designed to facilitate styling of 
a coiffure and provide limited holding power. 
<nl>(39)<ol> Hair styling gel - A high viscosity, often gelatinous, product that 
contains a resin and is designed for the application to hair to aid in styling 
and sculpting of the hair coiffure. 
<nl>(40)<ol> High volatility organic compound (HVOC) - Any <nl>VOC <ol> 
[volatile organic compound] that exerts a vapor pressure greater than 80 
millimeters mercury when measured at 20 degrees Centigrade. 
<nl>(41)<ol> Household adhesive - Any household product that is used to bond one 
surface to another by attachment. This does not include products used on humans 
and animals, adhesive tape, contact paper, wallpaper, shelf liners, or any other 
product with an adhesive incorporated onto or in an inert substrate. 
<nl>(42)<ol> Household product - Any consumer product that is primarily designed 
to be used inside or outside of living quarters or residences that are occupied 
or intended for occupation by individuals, including the immediate surroundings. 
<nl>(43)<ol> Initial sale - The bargain, sale, transfer, or delivery with intent 
to pass an interest therein, other than a lien, of a motor vehicle which has not 
been previously registered or licensed in Texas or elsewhere; and such a 
bargain, sale, transfer, or delivery, accompanied by registration or licensing 
of said vehicle in Texas or elsewhere, shall constitute the first sale of said 
vehicle, irrespective of where such bargain, sale, transfer, or delivery 
occurred. 
<nl>(44)<ol> Insect repellent - A pesticide product that is designed to be 
applied on human skin, hair, or attire worn on humans in order to prevent 
contact with or repel biting insects or arthropods. 
<nl>(45)<ol> Insecticide - A pesticide product that is designed for use against 
insects or other arthropods, but excluding products that are: 
(A) for agricultural use, 
(B) for use in maintaining building structures, or 
(C) restricted materials that require a permit for use and possession. 
<nl>(46)<ol> Insecticide fogger - Any insecticide product designed to release 
all or most of its content, as a fog or mist, into indoor areas during a single 
application. 
<nl>(47)<ol> Institutional product - A consumer product that is designed for use 
in the maintenance or operation of an establishment that manufactures, 
transports, or sells goods or commodities, or provides services for profit; or 
is engaged in the nonprofit promotion of a particular public, educational, or 
charitable cause. Establishments include, but are not limited to, government 
agencies, factories, schools, hospitals, sanitariums, prisons, restaurants, 
hotels, stores, automobile service and parts centers, health clubs, theaters, or 
transportation companies. Institutional products do not include household 
products and products that are incorporated into or used exclusively in the 
manufacture or construction of the goods or commodities at the site of the 
establishment. 
<nl>(48)<ol> Label - Any written, printed, or graphic matter affixed to, applied 
to, attached to, blown into, formed, molded into, embossed on, or appearing upon 
any consumer product or consumer product package, for purposes of branding, 
identifying, or giving information with respect to the product or to the 
contents of the package. 
<nl>(49)<ol> Laundry prewash - A product that is designed for application to a 
fabric prior to laundering and that supplements or contributes to the 
effectiveness of laundry detergents and/or provides specialized performance.
<nl>(50)<ol> Laundry starch product - A product that is designed for application 
to a fabric, either during or after laundering, to impart and prolong a crisp, 
fresh look and may also act to help ease ironing of the fabric. This includes, 
but is not limited to, fabric finish, sizing, and starch. 
<nl>(51)<ol> Lawn and garden insecticide - An insecticide product designed 
primarily to be used in household lawn and garden areas to protect plants from 
insects or other arthropods. 
<nl>(52)<ol> Liquid - A substance or mixture of substances which is capable of 
flow as determined under the American Society for Testing and Materials (ASTM) 
D-4359-90. This does not include powders or other materials that are composed 
entirely of solid particles. 
<nl>(53)<ol> Manufacturer - Any person who imports, manufactures, assembles, 
produces, packages, repackages, or relabels a consumer product for distribution 
or sale in Texas. 
<nl>(54)<ol> Medium volatility organic compound (MVOC) - Any <nl>VOC <ol> 
[volatile organic compound] that exerts a vapor pressure greater than two 
millimeters mercury and less than or equal to 80 millimeters mercury when 
measured at 20 degrees Centrigrade. 
<nl>(55)<ol> Nail polish - Any clear or colored coating designed for application 
to the fingernails or toenails and including, but not limited to, lacquers, 
enamels, acrylics, base coats, and top coats. 
<nl>(56)<ol> Nail polish remover - A product designed to remove nail polish and 
coatings from fingernails or toenails. 
<nl>(57)<ol> Non-aerosol product - Any product that is not dispensed by a 
pressurized spray system. 
<nl>(58)<ol> Nonresilient flooring - Flooring of a mineral content which is not 
flexible, including but not limited to, terrazzo, marble, slate, granite, brick, 
stone, ceramic tile, and concrete. 
<nl>(59)<ol> Oven cleaner - Any product designed to clean or remove dried food 
deposits from oven walls. 
<nl>(60)<ol> Percent-by-weight - The total weight of <nl>VOC <ol> [volatile 
organic compound (VOC)]except those VOCs exempted under sec.115.617 of this 
title (relating to Exemptions), expressed as a percentage of the total net 
weight of the product exclusive of the container or package as calculated 
according to the following equation:
Figure: 30 TAC sec.115.600(60) 
<nl>(61)<ol> Pesticide - Includes any substance or mixture of substances 
labeled, designed, or intended for use in preventing, destroying, repelling, or 
mitigating any pest, or any substance or mixture of substances labeled, 
designed, or intended for use as a defoliant, desiccant, or plant regulator, 
provided that the term pesticide will not include anything which the U.S. 
Environmental Protection Agency does not consider to be a pesticide.
<nl>(62)<ol> Principal display panel or panels - That part, or those parts of a 
label that are so designed as to most likely be displayed, presented, shown, or 
examined under normal and customary conditions of display or purchase. Whenever 
a principal display panel appears more than once, all requirements pertaining to 
the principal display panel shall pertain to all such principal display panels. 
<nl>(63)<ol> Product category - The applicable category which best describes the 
product as listed in this section. 
<nl>(64)<ol> Product form - The applicable form which most accurately describes 
the product's dispensing form, including aerosol products, gels, liquids, pump 
sprays, and solids. 
<nl>(65)<ol> Propellant - A liquefied or compressed gas that is used in whole or 
in part, such as a co-solvent, to expel a liquid or any other material from the 
same self-pressurized container or from a separate container. 
<nl>(66)<ol> Pump spray - A packaging system in which the product ingredients 
within the container are not under pressure and in which the product is expelled 
only while a pumping action is applied to a button, trigger, or other actuator. 
<nl>(67)<ol> Restricted materials - Any pesticides established for restricted 
use under <nl>FIFRA, sec.3(d) (7 USC sec.136, etc seq.)<ol> [Section 3(d) of the 
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), 7 United States 
Code sec.136, et seq.]
<nl>(68)<ol> Retailer - Any person who sells, supplies, or offers consumer 
products for sale directly to consumers. 
<nl>(69)<ol> Retail outlet - Any establishment at which consumer products are 
sold, supplied, or offered for sale directly to consumers. 
<nl>(70)<ol> Single-phase aerosol air freshener - An aerosol air freshener with 
the liquid contents in a single homogeneous phase and which does not require 
that the product container be shaken before use. 
<nl>(71)<ol> Shaving cream - An aerosol product which dispenses a foam lather 
intended to be used with a blade or cartridge razor in the removal of facial or 
other bodily hair, or other wet-shaving system.
<nl>(72)<ol> Solid - A substance or mixture of substances which, either whole or 
subdivided (such as the particles comprising a powder), is not capable of flow 
as determined under the American Society for Testing and Materials (ASTM) D-
4359-90. 
<nl>(73)<ol> Spray buff product - A product designed to restore a worn floor 
finish in conjunction with a floor buffing machine and special pad. 
<nl>(74)<ol> Subsequent sale - The bargain, sale, transfer, or delivery, with 
intent to pass an interest therein, other than a lien, of a motor vehicle which 
has been registered or licensed outside of Texas, save and except when such 
vehicle is not required under law to be registered or licensed in Texas or 
elsewhere; and any such bargain, sale, transfer, or delivery of a motor vehicle 
after same has been registered or licensed shall constitute a subsequent sale, 
irrespective of where bargain, sale, transfer, or delivery occurred. 
<nl>(75)<ol> Usage directions - The text or graphics on the product's label or 
accompanying literature which describes to the end user how and in what quantity 
the product is to be used. 
<nl>(76)<ol> Wasp and hornet insecticide - Any insecticide product that is 
designed for use against wasps, hornets, yellow jackets, or bees by allowing the 
user to spray a high-volume directed stream or burst from a safe distance at the 
intended pest or its hiding place. 
<nl>(77)<ol> Wax - A material or synthetic thermoplastic substance generally of 
high molecular weight hydrocarbons or high molecular weight esters of fatty 
acids or alcohols, except glycerol and high polymers (plastics). Wax includes, 
but is not limited to, substances derived from the secretions of plants and 
animals such as carnauba wax and beeswax, substances of a mineral origin such as 
ozocerite and paraffin, and synthetic polymers such as polyethylene. 
<nl>(78)<ol> Wood floor wax - Wax-based products for use solely on wood floors. 
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 May 22, 1998.
TRD-9808401
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation
Proposed date of adoption: August 19, 1998
For further information, please call: (512) 239-1970

TITLE 31. NATURAL RESOURCES AND CONSERVATION
PART X. Texas Water Development Board
CHAPTER 363.Financial Assistance Programs
SUBCHAPTER B.State Water Pollution Control Revolving Fund
<nl>Division 1<ol>. Introductory Provisions
31 TAC sec.363.202, sec.363.209
The Texas Water Development Board (board) proposes amendments to sec.363.202 and 
sec.363.209, concerning Financial Assistance Programs. The amendments to 
sec.363.209 provide a new method for borrowers to finance loan origination fees 
from revenues. This change is proposed as a result of a recent ruling of the 
U.S. Environmental Protection Agency that costs for administering the State 
Revolving Fund (SRF) that are included within loans and disbursed from the SRF 
are to be calculated as subject to the four percent (4%) administrative cost 
ceiling. 
Proposed amendments to sec.363.202 add a definition for "repayment schedule" and 
repeat amendments to definitions which were proposed in the May 1, 1998, issue 
of the Texas Register (23 TexReg 4224) to comply with new numbering requirements 
of the Texas Register.
Ms. Patricia Todd, Director of Accounting and Finance, has determined that for 
the first five-year period these sections are in effect there will be no fiscal 
implications on state and local government as a result of enforcement and 
administration of the sections over and above those associated with the adoption 
of the original rule. 
Ms. Todd has also determined that for the first five years the sections as 
proposed are in effect the public benefit anticipated as a result of enforcing 
the sections will be to place the Board in compliance with a U.S. Environmental 
Protection Agency ruling relating to the financing of loan origination costs. 
Ms. Todd has determined there will be no economic costs to small businesses or 
individuals required to comply with the sections as proposed. 
Comments on the proposed amendments will be accepted for 30 days following 
publication and may be submitted to Gail L. Allan, 512/463-7804, Texas Water 
Development Board, P.O. Box 13231, Austin, Texas, 78711-3231, or by fax at 
512/463-5580. 
The amendments are proposed under the authority of the Texas Water Code, 
sec.6.101 which provides the Texas Water Development Board with the authority to 
adopt rules necessary to carry out the powers and duties in the Water Code and 
other laws of the State. 
The statutory provision affected by the proposed amendments are Texas Water 
Code, Chapter 15, Subchapter J, sec.15.604(7). 

sec.363.202.Definitions.
Words and terms used in this subchapter shall have the following meanings, 
unless the context clearly indicates otherwise. Words defined in the Texas Water 
Code Chapters 15, 16 or 17, and not defined here shall have the meanings 
provided by the appropriate Texas Water Code chapter. 
<nl>(1)<ol> Act - The Federal Water Pollution Control Act, as amended, 33 USC 
1251 et. seq. 
<nl>(2)<ol> Administrative cost recovery fund - An operating fund to finance the 
administration of the SRF program, to be held outside the state treasury and 
separate from the SRF Program Account. 
<nl>(3)<ol> Administrative costs - All reasonable and necessary costs of 
administering any aspect of the SRF program, including the cost of servicing 
debt obligations of recipients of SRF financial assistance.
<nl>(4)<ol> Alternative technology - Proven wastewater treatment processes and 
techniques which provide for the reclaiming and reuse of water, productively 
recycle wastewater constituents or otherwise eliminate the discharge of 
pollutants, or recover energy. Specifically, alternative technology includes 
land application of effluent and sludge; aquifer recharge; aquaculture; direct 
reuse (nonpotable); horticulture; revegetation of disturbed land; containment 
ponds; sludge composting and drying prior to land application; self-sustaining 
incineration; methane recovery; individual and onsite systems; and small 
diameter pressure and vacuum sewers and small diameter gravity sewers carrying 
partially or fully treated wastewater. 
<nl>(5)<ol> <nl>Application for assistance - All the information required for 
submittal in the following sections: sec.363.12 of this title (relating to 
General, Legal and Fiscal Information), sec.363.222 of this title (relating to 
Required SRF Engineering Feasibility report) and sec.363.223 of this title 
(relating to Required Environmental Review and Determinations). <ol>
<nl>(6)<ol> Environmental determination - A finding by the executive 
administrator regarding the environmental soundness of a proposed project. 
<nl>(7)<ol> Environmental assessment - A written analysis prepared by the 
applicant describing the potential environmental impacts of a proposed project, 
sufficient in scope to enable the executive administrator to make an 
environmental determination. 
<nl>(8)<ol> EPA - The Environmental Protection Agency.
<nl>(9)<ol> <nl>Estuary management plan - A plan for the conservation and 
management of an estuary of national significance as described in the Act, 
sec.320. <ol>
<nl>(10)<ol> <nl> Estuary management project - A project pursuant to an estuary 
management plan. <ol>
<nl>(11)<ol> <nl> Hardship grants program for rural communities - The program 
established by the federal Omnibus Consolidated Recessions and Appropriations 
Act of 1996 (Public Law 104-403). <ol>
<nl>(12)<ol> <nl> Nonpoint source pollution plan - A plan for managing nonpoint 
source pollution as described in the Act, sec.319. <ol>
<nl>(13)<ol> <nl> Nonpoint source project - A project pursuant to a nonpoint 
source pollution management plan. <ol>
<nl>(14)<ol> <nl>Repayment schedule - The schedule of repayment of principal 
and/or interest due and payable from the recipients of SRF financial assistance. 
<ol>
<nl>(15)<ol> <nl> Rural hardship community - A community consisting of not more 
than 3,000 residents that is not a remote area within the corporate boundaries 
of a larger city and that: <ol>
<nl>(A)<ol> <nl> is lacking centralized wastewater treatment or collection 
systems or is in need of improvements to onsite wastewater treatment systems; 
<ol>
<nl>(B)<ol> <nl>has an average annual per capita income equal to or less than 
80% of the national annual per capita income as determined by the latest 
decennial census; and <ol>
<nl>(C)<ol> <nl>has an unemployment rate that exceeds by at least one percentage 
point the most recently reported average yearly national unemployment rate. <ol>
<nl>(16)<ol> SRF - The state water pollution control revolving fund, created 
pursuant to the Texas Water Code, Subchapter J, Chapter 15. 
<nl>(17)<ol> SRF program account - The program account is an account in the SRF 
created pursuant to a resolution of the board in issuing SRF bonds and is used, 
pursuant to such bond resolution(s), for the purpose of providing financial 
assistance to political subdivisions for construction of treatment works and, if 
needed, to pay rebate amounts to the federal government.
<nl>(18)<ol> <nl> "State of Texas 303(d) Report" - The report, prepared 
biennially by the commission, required by the Act, sec.303(d). <ol>
<nl>(19)<ol> Treatment works - The meaning established in the Act, sec.212, 
shall apply for projects funded from the state water pollution control revolving 
fund. 

sec.363.209.Administrative Cost Recovery.
(a)-(b) (No change.)
(c) Loan Origination Charge. A loan origination charge will be assessed 
<nl>on<ol> [of 1.85% of] the SRF loan amount[, excluding the amount of the 
origination charge]. The loan origination charge is a one-time charge that is 
due at the time of loan closing<nl>, subject to the terms of the repayment 
schedule. An applicant may pay the loan origination charge at closing at which 
time the charge assessed on the loan will be 1.85% of the SRF loan amount, or an 
applicant may pay the loan origination charge on the first interest payment date 
at which time the charge assessed on the loan will be 1.95% of the SRF loan 
amount. For new systems only where capitalized interest is required during 
construction, a loan origination charge of 1.95% of the SRF loan amount is due 
on the last interest payment date scheduled to be paid from capitalized 
interest.<ol> The loan origination charge may <nl> not<ol> be financed as a part 
of the SRF loan. 
(d)-(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 May 21, 1998.
TRD-9808367
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: July 16, 1998
For further information, please call: (512) 463-7981

CHAPTER 368.Flood Mitigation Assistance Program
31 TAC sec.sec.368.1-368.11
The Texas Water Development Board proposes new sec.sec.368.1 - 368.11 comprising 
new 31 TAC Chapter 368, concerning the Flood Mitigation Assistance Program. The 
new sections are proposed to govern the board's administration of grants for 
planning and projects under the FEMA Flood Mitigation Program. Section 368.1 
provides definitions of FEMA (Federal Emergency management Agency), FMA (Flood 
Mitigation Assistance), NFIP (National Flood Insurance Program) and Community 
(political subdivisions with zoning and building code jurisdiction over 
particular areas with flood hazards and which is participating in the NFIP, or 
political subdivisions or authorities designated to develop and administer a 
mitigation plan by political subdivision). Section 368.2 reiterates the purpose 
of the Flood Mitigation Assistance (FMA) Program as specified in federal law as 
assisting state and local governments in funding cost-effective actions that 
reduce or eliminate the long-term risk of flood damage to insurable structures. 
The long term goal includes reduction or elimination of claims under NFIP. 
Section 368.4 provides that the executive administrator of the board will 
publish notice in the Texas Register requesting applications, and requiring 
applicants to provide notice to other political subdivisions of its application. 
Section 368.5 provides eligibility criteria. For planning grants, communities 
which are not on probation or suspended under the National Flood Insurance 
Program are eligible. Grants will not be made to develop new or improved 
floodplain maps. A community is eligible for project grants if it is not on 
probation or suspended under NFIP, and if it has received FEMA approval of its 
mitigation plan. The section specifies that projects are eligible for planning 
grants only if they cost effective; are in conformance with various federal 
requirements including Floodplain Management and Protection of Wetlands, 
environmental considerations, and floodplain management regulations; and are 
located physically in a participating NFIP community. 
Section 369.6 specifies the components for the flood mitigation plan, which are 
taken from the federal regulations. The section specifies that the executive 
administrator will forward submitted flood mitigation plans to the FEMA regional 
director for approval. 
Section 368.7 specifies types of projects eligible for FMA funding as: 
acquisition of insured structures and real property and easements restricting 
property use; relocation of insured structures; demolition and removal of 
insured structures; elevation of insured structures; other activities to bring 
insured structures into floodplain management compliance; minor physical flood 
mitigation projects; and beach nourishment activities. 
Section 368.8 provides for the board to approve and finance planning grants from 
the board's research and planning fund using the procedures and criteria in 
Chapter 368. It provides criteria for evaluating and awarding planning grants to 
include the greatest flood risk to be addressed by the plan, demonstrated 
interest and commitment to mitigation, highest rate of NFIP participation, legal 
authority to plan for and control flooding, and effect of planning on overall 
flooding. The section specifies that planning grant work must be completed 
within three years of contract execution. 
Section 368.9 provides procedure for project grant evaluation by the executive 
administrator and board, and for forwarding grant award recommendations to FEMA. 
Criteria for evaluating the project grant awards include: the extent the project 
reduces future NFIP claims; projects which benefit areas with the greatest flood 
risk; projects with the highest cost/benefit ratio; projects which benefit the 
greatest number of NFIP-insured structures; the extent the project results in a 
long-term flooding solution and requires minimum maintenance; whether the 
project affects structures in an identified floodway or floodplain; the extent 
to which the sponsor is providing greater than the required 25% cost share; 
whether the applicant or community participates in Community Rating System; and 
the multi-objective nature of project. 
Section 368.10 provides for a required 25% local cost share, of which not more 
than one-half may be in-kind services. It restricts planning grants to $50,000, 
with a community being eligible for a planning grant nor more than once every 
five years. Project grants are limited to $3.3 million per community per five-
year period, with a total to all communities in the state of not to exceed $20 
million. These requirements are all imposed by federal regulations. Section 
368.11 provides terms and conditions for contracts including meeting applicable 
federal requirements. 
Ms. Patricia Todd, Director of Accounting & Finance, has determined that for the 
first five year period the sections are in effect there will be no fiscal 
implications for state government as a result of enforcing or administering the 
sections. Additional costs to local government as a result of enforcing or 
administering the sections are estimated to be $28,900 for each of years 1998, 
1999, 2000, 2001 and 2002 as any community seeking grants will be required to 
provide matching funds of 25 percent. Local governments will be expected to 
receive approximately $1.154 million in grants for each of the first five years 
that the rules are in effect, subject to appropriations from the federal 
government. It is also anticipated however, that program participation would 
eventually result in reductions of cost associated with or losses due to 
flooding. An estimation of these figures cannot be made at this time. 
Ms. Todd also has determined that for each year of the first five years that the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be to fund cost-effective measures to reduce or eliminate the 
long-term risk of flood damage to political subdivisions. There will be no 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the amendments as proposed. Comments on the proposed 
new sections will be accepted for 30 days following publication and may be 
submitted to Suzanne Schwartz, 512/463-7981, Texas Water Development Board, P.O. 
Box 13231, Austin, Texas, 78711-3231, fax no. 512/463-5580, or email to 
sschwart@twdb.state.tx.us. 
The new sections are proposed under the authority granted in: Texas Water Code, 
sec.6.101 and Texas Water Code, Chapter 15, Subchapter F, which require the 
board to adopt rules necessary to carry out the powers and duties of the board 
and for administration of the research and planning fund and under Texas 
Government Code, Chapter 742 which provides for state coordination of local 
applications for federal funds. 
The statutory provisions impacted by the proposed sections are Texas Water Code, 
sec.15.405.

sec.368.1.Definitions.
The following words and terms, when used in this chapter, shall have the 
following meaning unless the context clearly indicates otherwise: 
(1) Board - The Texas Water Development Board. 
(2) Executive administrator - The executive administrator of the board or a 
designated representative. 
(3) FEMA - Federal Emergency Management Agency. 
(4) FMA - Flood Mitigation Assistance. 
(5) NFIP - National Flood Insurance Program. 
(6) Community - 
(A) a political subdivision, including any Indian tribe or authorized native 
organization, that has zoning and building code jurisdiction over a particular 
area having special flood hazards, and which is participating in the NFIP; or 
(B) a political subdivision or other authority, that is designated to develop 
and administer a mitigation plan by political subdivisions, all of which meet 
the requirements of subparagraph (A) of this paragraph. 

sec.368.2.General.
In 1997, Governor Bush designated the Texas Water Development Board as the 
State's Point of Contact for FEMA's FMA program. This subchapter shall govern 
the board's responsibilities in administering the FMA program.

sec.368.3.Purpose.
The FMA program was authorized by the National Flood Insurance Act of 1968, 42 
U.S.C. 4104c and 4104d, sec.1366 and sec.1367. The purpose of FMA is to assist 
state and local governments in funding cost-effective actions that reduce or 
eliminate the long-term risk of flood damage to buildings, manufactured homes, 
and other insurable structures. The long-term goal of FMA is to reduce or 
eliminate claims under NFIP through mitigation activities. The program provides 
cost-shared grants for three purposes: planning grants to assess the flood risk 
and identify actions to reduce that risk; project grants to execute measures to 
reduce flood losses; and technical assistance grants that the state may use to 
assist communities to develop viable FMA applications and implement FMA 
projects. 

sec.368.4.Grant Applications and Notice.
As funds become available through FEMA, the executive administrator will publish 
notice in the Texas Register requesting applications from eligible communities 
for planning grants and/or project grants. Applicants shall submit 
application(s) in the form and in the numbers prescribed by the executive 
administrator. Applicants for planning grants shall provide notice of their 
grant applications in the manner required by sec.368.8 of this title (relating 
to Notice Requirements). The executive administrator may request additional 
information needed to evaluate the application, and may return any incomplete 
applications. 

sec.368.5.Eligibility Criteria.
(a) Planning grants. A community which is not on probation or not suspended 
under 44 CFR Part 60 of the NFIP is eligible to apply for a planning grant to 
fund preparation of a flood mitigation plan. Planning grants will not be awarded 
to develop new or improved floodplain maps. 
(b) Community eligibility for project grants. A community is eligible for a 
project grant only if: 
(1) it is not on probation or not suspended under 44 CFR Part 60 of the NFIP; 
and 
(2) it has received approval from the FEMA regional director of a flood 
mitigation plan. 
(c) Projects eligible for project grants. A project is eligible for grants only 
if it is: 
(1) cost effective. Only projects which do not cost more than the anticipated 
value of the reduction in both direct damages and subsequent negative impacts to 
the area if future floods were to occur will be funded. Both costs and benefits 
are computed on a net present value basis; 
(2) in conformance with: 44 CFR Part 9, Floodplain Management and Protection of 
Wetlands; Executive Order 12699, Seismic Safety of Federal and Federally 
Assisted or Regulated New Building Construction; 44 CFR Part 10, Environmental 
Considerations; and any applicable environmental laws and regulations; 
(3) technically feasible; 
(4) in conformance with the minimum standards of the NFIP Floodplain Management 
Regulations at 44 CFR Part 60; 
(5) in conformance with the Flood Mitigation Plan. The type of project being 
proposed must be identified in the plan; and 
(6) located physically in a participating NFIP community that is not on 
probation or must benefit such community directly be reducing future flood 
damages. 

sec.368.6.The Flood Mitigation Plan.
(a) A flood mitigation plan will articulate a comprehensive strategy for 
implementing technically feasible flood mitigation activities for the area 
affected by the plan. At a minimum, plans will include the following elements: 
(1) description of the planning process and public involvement. Public 
involvement may include workshops, public meetings, or public hearings;
(2) description of the existing flood hazard and identification of the flood 
risk, including estimates of the number and type of structures at risk, 
repetitive loss properties, and the extent of flood depth and damage potential; 
(3) the applicant's floodplain management goals for the area covered by the 
plan; 
(4) identification and evaluation of cost-effective and technically feasible 
mitigation actions considered; 
(5) presentation of the strategy for reducing flood risks and continued 
compliance with the NFIP, and procedures for ensuring implementation, reviewing 
progress, and recommending revisions to the plan; and 
(6) documentation of formal plan adoption by the legal entity submitting the 
plan. 
(b) The executive administrator will forward all submitted flood mitigation 
plans to the FEMA regional director for approval. 

sec.368.7.Types of Projects Eligible for Funding Through FMA.
The following types of projects are eligible for funding through FMA, provided 
they meet all other eligibility criteria: 
(1) acquisition of insured structures and underlying real property in fee simple 
and easements restricting real property to open space uses; 
(2) relocation of insured structures from acquired or restricted real property 
to non-hazard prone sites; 
(3) demolition and removal of insured structures on acquired or restricted real 
property; 
(4) elevation of insured residential structures in accordance with 44 CFR 
sec.60.3; 
(5) elevation or dry flood proofing of insured non-residential structures in 
accordance with 44 CFR sec.60.3; 
(6) other activities that bring an insured structure into compliance with the 
floodplain management requirements of 44 CFR sec.60.3;
(7) minor physical flood mitigation projects that reduce localized flooding 
problems and do not duplicate the flood prevention activities of other federal 
or state agencies; and 
(8) beach nourishment activities. 

sec.368.8.Planning Grant Evaluation and Approval Process.
(a) The board will provide funding for planning grants from money made available 
from FEMA and placed in the research and planning fund of the water assistance 
fund, and utilizing the procedures and criteria in this chapter. The executive 
administrator will evaluate applications for planning grants using, among other 
factors, the following criteria to prioritize applications:
(1) communities demonstrating the greatest flood risk to be addressed by the 
flood mitigation plan; 
(2) a demonstrated interest and commitment to mitigation by the community; 
(3) the highest rate of NFIP participation; 
(4) the legal authority of the applicant to plan for and control flooding; and 
(5) the effect of planning by the applicant on overall flood control in the 
state and within the area in which the applicant is located.
(b) The executive administrator will submit a list of planning grant 
applications to the board, with a list of those grants recommended for funding. 
At a meeting of the board, the board may approve applications in whole or in 
part for funding based upon the criteria in subsection (a) of this section. In 
its approval of an application for a planning grant, the board will specify a 
commitment period during which the applicant must enter into a contract with the 
board to receive planning grant funds, after which time the commitment shall 
expire, unless extended by the board. 
(c) Work under each planning grant must be completed within three years of the 
date of execution of the contract. 

sec.368.9.Project Grant Evaluation and Approval Process.
(a) The executive administrator will evaluate applications for project grants 
and forward recommendations to the board, and the board will prioritize project 
grants and forward them to FEMA for funding approval based on the following 
criteria: 
(1) the extent to which the project reduces future claims to the NFIP from 
repetitive loss structures or substantially damaged structures;
(2) projects that benefit areas with the greatest flood risk; 
(3) projects that have the highest benefit/cost ratio;
(4) projects that are likely to benefit the greatest number of NFIP-insured 
structures; 
(5) the extent to which the project results in a long-term solution to a 
flooding problem and requires minimum maintenance; 
(6) whether structures affected by the project are in an identified floodway and 
floodplain; 
(7) the extent to which the applicant is providing more than the minimum cost-
share of 25%; 
(8) whether the project applicant, or community where the project is located, 
participates in the NFIP Community Rating System (CRS); and 
(9) the extent to which the project has a multi-objective purpose. 
(b) In its approval of a project to be recommended for FEMA project grant, the 
board shall specify a commitment period that shall begin to run with 
notification of FEMA's approval of the project and during which time the 
applicant must enter into a contract with the board. If a contract has not been 
executed within the commitment period, the commitment shall expire unless a time 
extension is granted by the board. 

sec.368.10.Funding Limitations.
(a) Local cost share. Funding will be limited to no more than 75% of the total 
cost of the planning or project. Of the 25% to be provided by non-federal 
sources, no more than half can come from in-kind services, if directly in 
support of the project, properly documented, approved in advance by the board, 
and in conformance with federal cost-share limits in 44 CFR Part 13, and OMB 
Circular A-87. 
(b) Planning grants. A planning grant will not be awarded to a community more 
than once every five years, and will not exceed a funding limit of $50,000 to 
any single community applicant. The total amount of all planning grants can not 
exceed $300,000 in any federal fiscal year. 
(c) Project grants. The total amount of project grant funds provided during any 
five-year period can not exceed $3.3 million to any community. The total amount 
of project grant funds provided to all communities located in the state will not 
exceed $20 million during any five-year period. 

sec.368.11.Contracts.
Contracts between the board and applicants receiving grant awards shall require 
that the recipient will comply with FMA requirements, 44 CFR Parts 13 and 14, 
and applicable state, federal and local laws and regulations, will account for 
the appropriate use of grants funds and provide required performance and 
financial reports. The executive administrator may place conditions he considers 
necessary for the proper administration of the grant. 
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 May 21, 1998.
TRD-9808368
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: July 16, 1998
For further information, please call: (512) 463-7981

TITLE 34. PUBLIC FINANCE
PART I. Comptroller of Public Accounts
CHAPTER 9. Property Tax Administration
SUBCHAPTER H. Tax Record Requirements
34 TAC sec.9.3004
The Comptroller of Public Accounts proposes an amendment to sec.9.3004, 
concerning the appraisal records of all property. This rule is being amended to 
provide for the addition of the transfer of school tax limitation for over-65 
persons from House Bill 4, 75th Legislature, 1997, effective January 1, 1998. 
The amendment also adds the limitation on the appraised value of residence 
homesteads and deferral collection eligibility from Senate Bill 841, 75th 
Legislature, 1997, effective January 1, 1998.
Mike Reissig, chief revenue estimator, has determined that for the first five-
year period the amendment will be in effect there will be no significant revenue 
impact on the state or local government. 
Mr. Reissig also has determined that for each year of the first five years the 
amendment is in effect the public benefit anticipated as a result of adopting 
the amendment will be in providing new information regarding tax 
responsibilities. This amendment is adopted under the Tax Code, Title 2, and 
does not require a statement of fiscal implications for small businesses. There 
is no significant anticipated economic cost to individuals who are required to 
comply with the proposed amendment. 
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.5.07, which requires the 
comptroller to prescribe the contents and form for the administration of the 
property tax system. 
The amendment implements the Tax Code, sec.sec.6.13, 11.26, 23.12, 23.23, 25.02, 
and 33.065. 

sec.9.3004. Appraisal Records of All Property. 
(a) (No change.) 
(b) The appraisal records of all property shall be two lists - one list for real 
property and one list for personal property - and shall contain the following 
items of information as applicable: 
(1)-(4) (No change.) 
(5) if the property is a manufactured home, as defined in Texas Manufactured 
Housing Standards Act, [sec.(3)(s),] Texas Civil Statutes, Article 
5221f<nl>(3)(s)<ol>, the permanent identification number(s) or serial number(s) 
attached to the home, together with the make and model of the home, its 
approximate age, general physical condition, and any characteristics that 
distinguish the home from other manufactured homes;
(6)-(14) (No change.) 
(15) the name and address of an agent for notices, if any; [and] 
(16) (No change.) 
<nl>(17)<ol> whether the property is subject to a limitation of school taxes as 
provided by the Tax Code, sec.11.26, and whether and when the limitation was 
transferred to the homestead as provided by Tax Code, sec.11.26(g); 
<nl>(18)<ol> whether the property is subject to a limitation on the appraised 
value of a residence homestead as provided by Tax Code, sec.23.23; and 
<nl>(19)<ol> whether the property is subject to the deferred collection of taxes 
on an appreciating homestead as provided by Tax Code, sec.33.065. 
(c)-(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 May 21, 1998.
TRD-9808341
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-3699

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART XII. Texas Board of Occupational Therapy Examiners
CHAPTER 375.Fees
40 TAC sec.375.2
(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 Board of 
Occupational Therapy Examiners or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Board of Occupational Therapy Examiners proposes the repeal of 
sec.375.2, concerning Special Cases, Prorations, and Refunds of Fees. This 
repeal will eliminate obsolete language that is no longer necessary to the 
operation of the Board. 
John P. Maline, Executive Director of the Executive Council of Physical Therapy 
and Occupational Therapy Examiners, has determined that for the first five-year 
period the rule is in effect there will be no effect on state/local government. 
Mr. Maline also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be the eliminatation of obsolete and potentially confusing language 
from the administrative code. There will be no effect on small business. There 
will be no cost to individuals. 
Comments on the proposed rule may be submitted to Alicia Dimmick Essary, OT 
Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 
2-510, Austin, Texas 78701-3942. 
The repeal is proposed under the Occupational Therapy Practice Act, Texas Civil 
Statutes, Article 8851, which provides the Texas Board of Occupational Therapy 
Examiners with the authority to adopt rules consistent with this Act to carry 
out its duties in administering this Act. 
Texas Civil Statutes, Article 8851 is affected by this new section. 
sec.375.2.Special Cases, Prorations, and Refunds of Fees.
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 May 19, 1998.
TRD-9808174
Jennifer J. Jones
Executive Assistant
Texas Board of Occupational Therapy Examienrs
Proposed date of adoption: July 5, 1998
For further information, please call: (512) 305-6900

CHAPTER 387.Administrative Hearing Procedures
40 TAC sec.387.1
(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 Board of 
Occupational Therapy Examiners or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.) 
The Texas Board of Occupational Therapy Examiners proposes the repeal of 
sec.387.1, concerning Administrative Hearing Procedures. This repeal will 
eliminate obsolete language that is no longer necessary to the operation of the 
Board. 
John P. Maline, Executive Director of the Executive Council of Physical Therapy 
and Occupational Therapy Examiners, has determined that for the first five-year 
period the rule is in effect there will be no effect on state/local government. 
Mr. Maline also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be the eliminatation of obsolete and potentially confusing language 
from the administrative code. There will be no effect on small business. There 
will be no cost to individuals. 
Comments on the proposed rule may be submitted to Alicia Dimmick Essary, OT 
Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 
2-510, Austin, Texas 78701-3942. 
The repeal is proposed under the Occupational Therapy Practice Act, Texas Civil 
Statutes, Article 8851, which provides the Texas Board of Occupational Therapy 
Examiners with the authority to adopt rules consistent with this Act to carry 
out its duties in administering this Act. 
Texas Civil Statutes, Article 8851 is affected by this new section. 
sec.387.1. Administrative Hearing Procedures. 
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 May 19, 1998.
TRD-9808176
Jennifer J. Jones
Executive Assistant
Texas Board of Occupational Therapy Examiners
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 483-6162

CHAPTER 389.Petition for Adopotion of Rules
40 TAC sec.389.1
(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 Board of 
Occupational Therapy Examiners or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Board of Occupational Therapy Examiners proposes the repeal of 
sec.389.1, concerning Petition for Adoption of Rules. This repeal will eliminate 
obsolete language that is no longer necessary to the operation of the Board. 
John P. Maline, Executive Director of the Executive Council of Physical Therapy 
and Occupational Therapy Examiners, has determined that for the first five-year 
period the rule is in effect there will be no effect on state/local government. 
Mr. Maline also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be the eliminatation of obsolete and potentially confusing language 
from the administrative code. There will be no effect on small business. There 
will be no cost to individuals. 
Comments on the proposed rule may be submitted to Alicia Dimmick Essary, OT 
Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 
2-510, Austin, Texas 78701-3942. 
The repeal is proposed under the Occupational Therapy Practice Act, Texas Civil 
Statutes, Article 8851, which provides the Texas Board of Occupational Therapy 
Examiners with the authority to adopt rules consistent with this Act to carry 
out its duties in administering this Act. 
Texas Civil Statutes, Article 8851 is affected by this new section. 
sec.389.1.Petition for Adoption of Rules.
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 May 19, 1998.
TRD-9808175
Jennifer J. Jones
Executive Assistant
Texas Board of Occupational Therapy Examiners
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 305-6900

TITLE 43. TRANSPORTATION
PART II. Texas Turnpike Authority Division
CHAPTER 50.Management
The Board of Directors of the Texas Turnpike Authority Division of the Texas 
Department of Transportation (the "Board") proposes new sec.sec.50.1, 50.3-
50.30, 50.33, 50.44, 50.45, 50.50-50.54, and 50.60-50.62, concerning governance 
of the Authority's management and its day-to-day operations. 
EXPLANATION OF PROPOSED NEW SECTIONS 
Transportation Code, sec.361.042, requires the Authority to adopt rules for the 
regulation of its affairs and the conduct of its business and, further, to do 
all things necessary or appropriate to carry out the powers granted to the 
Authority in Transportation Code, Chapter 361. 
In compliance with the statutory requirements, and in order to manage its 
affairs in an efficient manner, the Board proposes new sections concerning the 
governance of the Authority, public meetings and public access, employment 
practices, indemnification rights and procedures, and public records, complaint 
procedures and debt collection. 
Section 50.1 defines the purpose for the rules contained in Chapter 50, which 
generally is to regulate the conduct of the affairs, and the performance of the 
functions of the Authority in accordance with Transportation Code, Chapter 361. 
Section 50.3 specifies the locale of the Authority's principal office as being 
in the City of Austin, Travis County, Texas. 
Section 50.4 sets forth the general powers of the Authority as exercised through 
its Board of Directors. In general, the powers include all duties and functions 
as required by the Constitution, the statutes of the State of Texas, the rules 
of the Authority, and includes those powers derived specifically from 
sec.361.042 concerning the consideration, study, plan and development of 
turnpike projects; the adoption of rules for the regulation of the Authority's 
affairs and the conduct of its business; and the undertaking of such other 
duties as are delegated to it by the Texas Transportation Commission. 
Section 50.5 specifies, consistent with Transportation Code, sec.361.032, that 
the Authority's Board of Directors shall consist of seven members. 
Section 50.6, consistent with Transportation Code, sec.361.032, specifies that 
six directors will be representatives of the general public, appointed by the 
Governor, with the remaining director being the Chair of the Texas 
Transportation Commission or a designee of the Chair. 
Section 50.7 enumerates the qualifications for directors to serve on the Board, 
and sets forth criteria which will disqualify individuals from Board service. 
The content of this section is consistent with Transportation Code, sec.361.032 
and sec.361.033. 
Section 50.8 specifies that directors will serve staggered terms of six years 
with the terms of one-third of the directors expiring on February 15th of each 
odd-numbered year. This provision is consistent with Transportation Code, 
sec.361.032(b).
Section 50.9 sets forth the procedures for filling vacancies on the Board 
consistent with Transportation Code, sec.361.032(e). 
Section 50.10 sets forth conditions under which a director may resign or may be 
removed from the Board consistent with Transportation Code, sec.361.035.
Section 50.11 specifies that directors serve without compensation but are 
entitled to reimbursement for actual expenses of attending meetings and other 
expenses as necessarily incurred in the carrying-out of the duties and functions 
of the Authority. The section also clarifies that directors can serve the 
Authority in other capacities and may receive compensation therefor. This 
provision is consistent with Transportation Code, sec.361.036. 
Section 50.12 specifies that meetings of the Board must be held at least once 
during each calendar quarter and also sets forth procedures for the calling of 
special meetings. 
Section 50.13 specifies that a majority of the members of the Board constitute a 
quorum and that the vote of a majority is necessary for any action to be taken 
by the Board. This section also discusses the impact of a vacancy in Board 
membership on the exercise of the Authority's rights by a quorum of the Board. 
This provision is consistent with Transportation Code, sec.361.032(h) and (i). 
Section 50.14 sets forth the conditions under which the Board may hold open or 
closed meetings by telephone conference call, subject to requirements of the 
Texas Open Meetings Act and the specific provisions of the rule. This provision 
is derived from Transportation Code, sec.361.0485. 
Section 50.15 describes procedures for the conduct of meetings of the Board and 
meetings of any committees. 
Section 50.16 authorizes the Chair of the Authority to designate one or more 
committees to be comprised of members of the Board, and requires the committees 
to keep regular minutes of their proceedings and report on those proceedings to 
the Board as required. This section also makes clear that committee meetings, to 
the extent applicable, will be governed by other Authority's rules relating to 
meetings, quorum, meetings by telephone, and procedures.
Section 50.17 specifies the procedures for providing notice of regular, special, 
and emergency meetings of the Board. Such notices must be in compliance with the 
Texas Open Meetings Act. 
Section 50.18 provides for the execution of a written waiver of notice by 
directors. 
Section 50.19 indicates that attendance of a director at a meeting of the Board 
or a committee will constitute waiver of the notice, unless such attendance is 
for the sole purpose of objecting to the transaction of business on the grounds 
that the meeting was not lawfully called. 
Section 50.20 specifies the officer positions for the Authority and that 
officers shall be reimbursed for all expenses incurred in conducting proper 
Authority business and for travel expenses incurred in the performance of their 
duties. 
Section 50.21 describes the procedure and term for the election of officers.
Section 50.22 enumerates the procedures for, and in the event of, removal or 
resignation of officers from their respective office(s). 
Section 50.23 specifies that the Governor shall designate one director as Chair 
of the Board, and that the Chair shall have the ability to appoint all 
committees, call meetings, and preside at all meetings. The designation of the 
Chair by the Governor is provided for in Transportation Code, sec.361.032(g).
Section 50.24 describes the duties of the office of Vice Chair. 
Section 50.25 describes the duties of the office of secretary and makes clear 
that the secretary need not be a Director of the Authority. 
Section 50.26 describes the duties of the office of treasurer, who need not be a 
Director of the Authority. 
Section 50.27 enables the Director of the Authority to assign duties and 
responsibilities to other administrators, and provides for other administrators' 
removal by the director with or without cause. 
Section 50.28 acknowledges that the director is selected by, and serves at the 
leisure of, the Texas Transportation Commission, consistent with Transportation 
Code, sec.361.031(g). The section also sets forth the duties and 
responsibilities of the director. The director is to perform all duties assigned 
by the Board, and is responsible for: general management; hiring and termination 
of employees; day-to-day operations of the Authority; notification to the Chair 
in the event that the director learns that a potential ground for removal of a 
member of the Board exists; execution of interagency and interlocal contracts 
and service contracts which have been approved by the Board; issuance of 
contracts, contract supplements, and contract change orders not exceeding 
$100,000; reporting to the Board at least four times per year on the state of 
operations of the Authority; issuance of requests for proposals, requests for 
qualifications and similar requests for the provisions of services not otherwise 
subject to competitive bidding; selection of service providers and negotiation 
of contracts for services (not including contracts for legal, financial advisory 
and underwriting services which remain the responsibility of the Board). All 
contracts negotiated by the director with service providers remain subject to 
the Board's approval. 
Section 50.29 describes the duties of the assistant secretary. 
Section 50.30 describes the duties of the assistant treasurer. 
Section 50.33 provides for accommodations to be made for persons who do not 
speak English, or who have a physical, mental or developmental disability, and 
may need auxiliary aids in order to participate in public meetings, hearings, or 
to access information concerning the Authority's programs. This complies with 
Transportation Code, sec.361.051. 
Section 50.44 clarifies that employees of the Authority are employees at will, 
absent an employment agreement, and that employees may be terminated at any 
time, with or without cause, by the director (subject to applicable laws, 
policies, and procedures in place at the time of termination). 
Section 50.45 sets forth standards of conduct for Authority employees, the 
violation of which can be cause for disciplinary action including dismissal, 
loss of pay, and/or criminal prosecution. These standards include prohibitions 
on acceptance of gifts which could tend to influence employees in the discharge 
of their duties; restrictions on the use of state-owned vehicles; restrictions 
of outside business and professional activities which interfere with the 
employees' working hours or efficiency, or create a conflict between the 
employees' private interests and public duties; prohibitions on business 
dealings which result in a conflict of interest; prohibitions on investments 
which may result in a conflict of interest; prohibitions against any financial 
interest in projects undertaken by the Authority; prohibitions against certain 
political activities which interfere with job-related duties, as well as a 
prohibition against the use of official authority for the purpose of affecting 
an election; and a prohibition on the use of illegal drugs, inhalants, alcoholic 
beverages and abuse of prescription drugs. This section also describes the 
Authority's sexual harassment policy, including the prohibition of any sexual 
harassment, the process for reporting alleged sexual harassment, and certain 
rights and protections afforded those who report alleged sexual harassment. 
Section 50.50 provides for indemnification of directors, officers, 
administrators or "other employees" of the Authority, to the extent allowed by 
law, against liability and reasonable expenses, including attorneys fees, 
incurred in connection with any action brought against them resulting from their 
positions with the Authority or from their alleged negligence or misconduct in 
the performance of their duties on behalf of the Authority. No indemnification 
will be allowed for gross negligence or willful misconduct, and the right to 
indemnification, as well as the amount of indemnification, is subject to 
approval by the Board. Section 50.51 details procedures for determining whether 
certain types of expenses shall be subject to the indemnification potentially 
available under sec.50.50. 
Section 50.52 sets forth the procedures for securing indemnification in the 
event it is allowed by the Board and by applicable law. 
Section 50.53 clarifies that the right to indemnification provided by the rules 
is not exclusive of other rights available to the indemnified party as a matter 
of law. 
Section 50.54 specifies that the phrase "other employee" shall have the meaning 
assigned to it by the Board for purposes of the indemnification provisions of 
sec.sec.50.50-50.53. 
Section 50.60 makes clear that, subject to limitations provided for in 
Transportation Code, Chapter 361, the Public Information Act, copyright law, and 
other applicable laws, information collected or maintained by the Authority are 
public records open to inspection and copying. This section also specifies that 
the director may request a determination from the Attorney General's office 
concerning whether certain records are subject to disclosure. Finally, this 
section indicates that the Authority will provides copies of its records upon 
request and may charge fees for doing so at appropriate rates consistent with 
provisions of the Texas Government Code. 
Section 50.61, consistent with Transportation Code, sec.361.052, embodies 
procedures for parties desiring to file complaints with the Board, as well as 
the process for resolving such complaints.
Section 50.62 enumerates the procedures for collection of debts owed to the 
Authority. 
FISCAL NOTE 
Frank J. Smith, Director, Finance Division, has determined that for the first 
five-year period the new sections are in effect, there will be no significant 
fiscal implications for state or local governments as a result of enforcing or 
administering of the sections. There are no anticipated economic costs to 
persons required to comply with the sections as proposed. 
Pete Davis, P.E., Director, Texas Turnpike Authority 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 rules. 
PUBLIC BENEFIT 
Mr. Davis 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 compliance with the sections will be improved management of the operations of 
the Authority and improved public access to Authority processes and records. 
SUBMITTAL OF COMMENTS 
Written comments on the proposed new sections may be submitted to C. Brian 
Cassidy, C/O Texas Turnpike Authority Division, 125 East 11th Street, Austin, 
Texas 78701-2483, (512) 936-0903, fax (512) 305-9518. The deadline for receipt 
of comments will be 5:00 p.m. on July 6, 1998. 

SUBCHAPTER A.General Provisions
43 TAC sec.50.1
STATUTORY AUTHORITY 
The new sections are proposed under Transportation Code, sec.361.042, which 
requires the Board to adopt rules for the regulation of its affairs and the 
conduct of its business. 
No statutes, articles, or codes, are affected by these proposed new sections.

sec.50.1.The Authority. 
These rules are made and adopted for the regulation of the affairs and the 
performance of the functions of the Texas Turnpike Authority Division of the 
Texas Department of Transportation (the Authority), an agency of the State of 
Texas authorized and existing pursuant to the laws of the State of Texas, in 
accordance with the provisions of Transportation Code, Chapter 361.
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 May 20, 1998.
TRD-9808271
C. Brain Cassidy
General Counsel
Texas Turnpike Authority Division
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER B.Governance of the Authority
43 TAC sec.sec.50.3-50.30
STATUTORY AUTHORITY 
The new sections are proposed under Transportation Code, sec.361.042, which 
requires the Board to adopt rules for the regulation of its affairs and the 
conduct of its business.
No statutes, articles, or codes, are affected by these proposed new sections.

sec.50.3.Principal Office.
The principal office of the Authority shall be in Austin, Travis County, Texas.

sec.50.4. General Powers.
The activities, property, and affairs of the Authority will be managed by its 
Board of Directors. Through the Board, the Authority will perform all duties and 
functions as required by the Constitution, the statutes of the State of Texas, 
and these rules. Without limiting the foregoing, the Board shall: 
(1) on its own initiative or at the request of the commission, consider, study, 
plan, and develop turnpike projects under this chapter; 
(2) adopt rules for the regulation of its affairs and the conduct of its 
business; and 
(3) undertake such other duties as are delegated to it by the commission.

sec.50.5.Number. 
The Board shall consist of seven directors or such other number as may be 
mandated statutorily by the Turnpike Act.

sec.50.6.Appointment. 
Of the seven directors, six will be representatives of the general public 
appointed by the Governor, by and with the advice and consent of the Texas State 
Senate. The remaining director will be the chair of the Texas Transportation 
Commission or a member of the Commission designated by the chair, and will serve 
ex-officio as a voting member of the Board and will be vested with all rights, 
duties, and responsibilities of other members of the Board. 

sec.50.7. Qualifications.
(a) All directors appointed to the Board will be residents of Texas and of the 
county from which they are appointed for a period of at least one year prior to 
their appointment. All directors will have and maintain the qualifications set 
forth in this section and in the Turnpike Act. 
(b) A person shall not be eligible for appointment to the Board if the person or 
the person's spouse: 
(1) is registered, certified, or licensed by an occupational regulatory agency 
in the field of toll road construction, maintenance, or operation; 
(2) is employed by or participates in the management of a business entity or 
other organization that is regulated by the Authority, the Commission, or the 
Department or receives funds from any of the foregoing;
(3) owns or controls, directly or indirectly, more than a 10% interest in a 
business or entity or other organization that is regulated by, or receives funds 
from, the Authority, the Commission or the Department, other than compensation 
for acquisition of turnpike right-of-way; 
(4) uses or receives a substantial amount of tangible goods, services, or funds 
from the Commission, the Department or the Authority, other than compensation or 
reimbursement authorized by law for Board membership, attendance, or expenses, 
or compensation for acquisition of turnpike right-of-way; or 
(5) is an officer, employee or paid consultant of a Texas trade association in 
the field of road construction, maintenance or operation.
(c) A person shall not be eligible for appointment to the Board if the person is 
required to register as a lobbyist under Government Code, Chapter 305, because 
of the person's activities for compensation on behalf of a profession related to 
the operation of the Authority. 
(d) For purposes of this section, the phrase "Texas trade association" means a 
nonprofit, cooperative, and voluntarily joined association of business or 
professional competitors in this state designed to assist its members and its 
industry or profession in dealing with mutual business or professional problems 
and in promoting their common interests.

sec.50.8. Term. 
Appointed directors will serve staggered terms of six years, with the terms of 
one-third of the directors expiring on February 15th of each odd-numbered year. 
All directors shall serve until their successors have been duly appointed and 
qualified or until their death, resignation, or removal from office in 
accordance with these rules or any applicable law.

sec.50.9.Vacancies.
Any vacancy occurring on the Board shall be filled by the governor. A director 
appointed by the governor to fill a vacancy shall be appointed for the unexpired 
term of the director's predecessor in office.

sec.50.10. Resignation and Removal.
A director may resign at any time upon giving written notice to the governor. An 
appointed director may be removed from the Board if the director does not 
possess at the time the director is appointed, or does not maintain, the 
qualifications required by the Turnpike Act, or if the director violates a 
prohibition established by the Turnpike Act, sec.361.033(b), (c), or (d). In 
addition, a director who cannot discharge the director's duties for a 
substantial part of the term for which he or she is appointed because of illness 
or disability, or a director who is absent from more than half of the regularly 
scheduled Board meetings during a given calendar year (unless the absence is 
excused by a majority vote of the Board), may be removed. If the Director of the 
Authority has knowledge that a potential ground for removal of a director 
exists, the Director shall notify the Chair of the potential ground for removal. 
The Chair shall then notify the governor of such potential ground. A director 
shall be considered removed from the Board only after the Authority receives 
notice of removal from the governor. The validity of an action of the Board 
shall not be affected by the fact that it is taken when grounds for removal of a 
director exists.

sec.50.11. Compensation of Directors.
Members of the Board shall serve without compensation, but directors shall be 
reimbursed for their actual expenses of attending each meeting of the Board and 
for such other expenses as may be necessarily incurred in their carrying out the 
duties and functions as set forth herein and in the Turnpike Act. This provision 
will not preclude any director from serving the Authority in any other capacity 
as permitted herein and in the Turnpike Act or from receiving compensation for 
such other service. 

sec.50.12.Meetings. 
A regular meeting of the Board is to be held at least once during each calendar 
quarter in the State of Texas, at a specific site, date, and time to be 
determined by the Chair. The Chair may postpone any regular meeting if it is 
determined that such regular meeting is unnecessary or that a quorum will not be 
achieved, but no fewer than four meetings shall be held during each calendar 
year. Special meetings and emergency meetings of the Board may be called, upon 
proper notice, at any time by the Chair or at the request of any three members 
of the Board. Special meetings and emergency meetings shall be held at such time 
and place as is specified by the Chair, if the Chair calls the meeting, or by 
the three directors, if they call the meeting. In addition to the foregoing, the 
calling of an emergency meeting shall comply with the Texas Open Meetings Act 
and other applicable laws.

sec.50.13.Quorum.
A majority of the members of the Board constitutes a quorum, and the vote of a 
majority of the members present and voting at a meeting at which a quorum is 
present will be necessary for any action taken by the Board. No vacancy in the 
membership of the Board will impair the right of a quorum to exercise all of the 
rights and to perform all of the duties of the Board. Therefore, if a vacancy 
occurs, a majority of the members then serving in office will constitute a 
quorum.

sec.50.14.Meetings by Telephone.
Subject to the provisions of the Texas Open Meetings Act and other applicable 
laws, the Board may hold an open or closed meeting by telephone conference call 
under the conditions, and for the purposes, described in Transportation Code, 
Chapter 361, and the provisions of the Texas Open Meetings Act. The telephone 
conference call meeting is subject to the notice requirements applicable to 
other meetings of the Board, and the notice must specify the conference room of 
the Authority as the location of the meeting. Each part of the telephone 
conference call that is required to be open to the public shall be audible to 
the public at the location specified in the notice and shall be tape recorded or 
documented by written minutes. At the conclusion of the meeting the tape 
recording or the written minutes of the open portion of the meeting shall be 
made available to the public. Participation in a meeting pursuant to this 
section constitutes being present in person at such meeting, except that a 
director will not be considered in attendance when the director appears at such 
a meeting for the express purpose of objecting to the transaction of any 
business on the ground that the meeting is not lawfully called or convened.

sec.50.15. Procedure. 
All meetings of the Board and its committees shall be conducted in accordance 
with Robert's Rules of Order subject to proper notice of the meeting being 
posted as provided by law. The Chair with the consent of a majority of the Board 
then present, may at any time change the order of items to be considered from 
that set forth in the notice of meeting, provided that all agenda items that 
require a vote by the Board shall be considered at the meeting for which they 
have been posted.

sec.50.16.Committees. 
The Chair at any time may designate from among the members of the Board one or 
more committees, each of which shall be comprised of one or more members of the 
Board, and may designate one or more directors as alternate members of any such 
committee, who may, subject to any limitations imposed by the Chair, replace 
absent or disqualified members at any meeting of that committee. A committee may 
be approved by resolution of the Board and, to the extent provided in such 
resolution, shall have and may exercise all of the authority of the Board, 
subject to the limitations imposed by applicable law. The Chair shall appoint 
directors to fill any vacancies in the membership of the committees. All 
committees shall keep regular minutes of their proceedings and report the same 
to the Board as required. The designation of a committee of the Board and the 
delegation thereto of authority shall not operate to relieve the Board, or any 
member thereof, of any responsibility imposed by law. To the extent applicable, 
the provisions of sec.sec.50.12-50.15 of this title (relating to Meetings; 
Quorum; Meetings by Telephone; and Procedure) governing the meetings of the 
Board likewise shall govern the meetings of its committees.

sec.50.17.Notice. 
Notice of any regular, special, or emergency meeting of the Board and meetings 
of all committees will be given according to the provisions of the Texas Open 
Meetings Act. In addition, at least ten days prior notice shall be given of any 
regular meeting and at least 48 hours notice shall be given of any special 
meeting to all directors entitled to vote at such meeting. Notice of each 
meeting shall be sent by the secretary or such other person designated by the 
Director by mail or facsimile. If sent by mail, such notice will be deemed 
delivered when it is deposited in the United States mail with sufficient postage 
prepaid. If sent by facsimile, the notice will be deemed delivered when 
transmitted properly to the correct number, provided that an additional copy of 
such notice shall be sent by overnight delivery as confirmation of the notice 
sent by facsimile. Such notice of meetings also may be given by telephone, 
provided the secretary or such other person designated by the Director speaks 
personally to the directors to give them notice.

sec.50.18. Waiver of Notice. 
Whenever any notice is required to be given to any director by statute or by 
these rules, a written waiver of such notice signed by the person or persons 
entitled to such notice, whether before or after the time required for such 
notice, shall be deemed equivalent to the giving of such notice.

sec.50.19. Attendance as Waiver.
Attendance of a director at a meeting of the Board or a committee thereof will 
constitute a waiver of notice of such meeting, except that a director will not 
be considered in attendance when the director appears at such meeting for the 
express purpose of objecting to the transaction of any business on the ground 
that the meeting is not lawfully called or convened.

sec.50.20. Officers. 
The officers of the Authority shall consist of the Chair, a vice chair, a 
secretary, and a treasurer. The offices of secretary and treasurer may be held 
simultaneously by the same person, and such offices need not be held by persons 
who are directors. Officers shall be reimbursed for all expenses incurred in 
conducting proper Authority business and for travel expenses incurred in the 
performance of their duties.

sec.50.21.Election and Term of Office. 
Officers, except for the Chair, will be elected for a term of two years, subject 
to the provisions of sec.50.22 of this title (relating to Removal and 
Vacancies). The election of said officers shall be by a vote of the directors of 
the Authority as specified in sec.50.13 of this title (relating to Quorum) at 
the first meeting of the Authority held during the first six months of every 
odd-numbered year or at such other meeting as the Board determines within said 
time period.

sec.50.22.Removal and Vacancies.
Each officer shall hold office until a successor is chosen and qualified, or 
until the officer's death, resignation, or removal. Any officer, except for the 
Chair, may resign at any time upon giving written notice to the Board. The Chair 
may resign at any time upon giving written notice to the governor. Any officer, 
other than the Chair, may be removed from service as an officer at any time, 
with or without cause, by the affirmative vote of a majority of the directors of 
the Board. 

sec.50.23.Chair. 
The governor shall designate one director as Chair of the Board, to serve in 
that capacity at the pleasure of the governor. The Chair shall appoint all 
committees of the Board as specified in sec.50.16 of this title (relating to 
Committees), call all regular meetings of the Board, and preside at all meetings 
of the Board.

sec.50.24. Vice Chair. 
During the absence or disability of the Chair or upon the Chair's request, the 
vice chair shall perform the duties and exercise the authority and powers of the 
Chair.

sec.50.25.Secretary. 
The Board shall elect a secretary, who need not be a director of the Authority. 
The secretary shall keep true and complete records of all proceedings of the 
directors in books provided for that purpose and shall assemble, index, 
maintain, and keep up-to-date a book of all of the policies adopted by the 
Authority; attend to the giving and serving of all notices of meetings of the 
Board and its committees and such other notices as are required by the office of 
secretary and as may be directed by the Turnpike Act, any trust indenture 
binding on the Authority, directors of the Authority, or the Director; and 
attest all documents, including trust agreements, bonds, and other obligations 
of the Authority; execute, attest, and verify signatures on all contracts in 
which the total consideration equals or exceeds $125,000, contracts conveying 
property of the Authority, and other agreements binding on the Authority which 
by law or Board resolution require attestation; certify resolutions of the Board 
and any committee thereof; maintain custody of the minute books, accounts, and 
all other official documents and records, files, and contracts that are not 
specifically entrusted to some other officer or depository; and hold such 
administrative offices and perform such other duties as the directors of the 
Authority or the Director shall require. The Director shall establish the 
compensation for the secretary consistent with the rules and policies of the 
Authority and subject to approval by the Board. 

sec.50.26. Treasurer. 
The Board shall elect a treasurer, who need not be a director of the Authority. 
The treasurer shall execute all requisitions to the applicable bond trustee for 
withdrawals from the construction fund, unless the Board designates a different 
officer, director, or employee of the Authority to execute any or all of such 
requisitions. In addition, the treasurer shall execute, and if necessary attest, 
any other documents or certificates required to be executed and attested by the 
treasurer under the terms of any trust agreement or supplemental trust agreement 
entered into by the Authority; maintain custody of the Authority's funds and 
securities and keep a full and accurate account of all receipts and 
disbursements, and endorse, or cause to be endorsed, in the name of the 
Authority and deposit, or cause to be deposited, all funds with the Comptroller 
of Public Accounts or in such bank or banks as may be designated by the 
Authority as depositories; render to the directors at such times as may be 
required an account of all financial transactions coming under the scope of the 
treasurer's authority; give a good and sufficient bond, to be approved by the 
Authority, in such an amount as may be fixed by the Authority; to the extent 
allowed by law invest such of the Authority's funds as directed by resolution of 
the Board, subject to the restrictions of any trust agreement entered into by 
the Authority; and hold such administrative offices and perform such other 
duties as the directors of the Authority or the Director shall require. The 
Director shall establish the compensation for the treasurer consistent with the 
rules and policies of the Authority and subject to approval by the Board.

sec.50.27. Administrators. 
The administrators of the Authority may include the administrators as provided 
for in these rules and such other administrators as the Director may designate. 
All such administrators, except for the Director, shall perform such duties and 
have such powers as may be assigned to them by the Director. Any administrator 
may be removed, with or without cause, at any time by the Director. All 
administrators will be reimbursed for expenses incurred in performance of their 
duties as approved by the Director.

sec.50.28.Director. 
(a) The Director will be selected by the Commission and shall serve at the 
pleasure of the Commission. The Director shall perform all duties assigned by 
the Board and implement all resolutions adopted by the Board.
(b) In addition, the Director shall: 
(1) be responsible for general management, hiring and termination of employees 
in accordance with applicable law and the Authority's policies, and day to day 
operations of the Authority; 
(2) notify the Chair in the event the Director has knowledge that a potential 
ground for removal of a member of the Board exists; 
(3) have the authority to execute inter-agency and interlocal contracts and 
service contracts provided that such contracts have been approved by the Board; 
(4) have the authority to execute contracts, contract supplements, and contract 
change orders not exceeding $100,000, except as otherwise authorized by Board 
resolution; 
(5) report to the Board at least four times per year on the state of operations 
of the Authority; and 
(6) have the authority to issue requests for proposals, requests for 
qualifications and/or similar requests for the provision of services not 
otherwise subject to competitive bidding requirements, and to select service 
providers and negotiate contracts for such services (Any such contracts shall be 
subject to review and approval by the Board. The authority provided in this 
paragraph does not encompass the procurement of legal, financial advisory and 
underwriting services, and such services shall be procured in the manner 
required by statute, rule or direction of the Board.).

sec.50.29.Assistant Secretary. 
The Board may appoint an assistant secretary, who need not be a Director of the 
Authority. The assistant secretary, if any, will be authorized to perform all of 
the duties and to have all of the powers of the secretary if so authorized by 
the Board or in the event of the secretary's absence, unavailability, or 
incapacity, due to illness or otherwise. 

sec.50.30.Assistant Treasurer. 
The Board may appoint an assistant treasurer, who need not be a Director of the 
Authority. The assistant treasurer, if any, will be authorized to perform all of 
the duties and to have all of the powers of treasurer if so authorized by the 
Board or in the event of the treasurer's absence, unavailability, or incapacity, 
due to illness or otherwise.
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 May 20, 1998.
TRD-9808272
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER C.Public Meetings and Public Access
43 TAC sec.50.33
STATUTORY AUTHORITY 
The new sections are proposed under Transportation Code, sec.361.042, which 
requires the Board to adopt rules for the regulation of its affairs and the 
conduct of its business.
No statutes, articles, or codes, are affected by these proposed new sections.

sec.50.33.Public Access to Information and Auxiliary Aids.
A person who does not speak English, or who has a physical, mental or 
developmental disability and may need auxiliary aids or services such as 
interpreters, readers, large print or braille in order to participate in public 
meetings or hearings or in order to access information concerning the 
Authority's programs, should contact the secretary of the Authority at (512) 
936-0903 at least two work days prior to a meeting, hearing, or when access to 
information is needed so that appropriate arrangements can be made. The 
authority will make every reasonable effort to make the appropriate 
arrangements. 
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 May 20, 1998.
TRD-9808273
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER D.Employment Practices
43 TAC sec.sec.50.44, 50.45
STATUTORY AUTHORITY 
The new sections are proposed under Transportation Code, sec.361.042, which 
requires the Board to adopt rules for the regulation of its affairs and the 
conduct of its business. 
No statutes, articles, or codes, are affected by these proposed new sections.

sec.50.44.Termination of Employees.
Employees of the Authority shall be employees at will unless they are party to 
an employment agreement with the Authority executed by the chair upon approval 
by the Board. Employees may be terminated at any time, with or without cause, by 
the Director subject to applicable law and the policies and procedures adopted 
and in place at the time of termination.

sec.50.45. Standards of Conduct.
The following standards of conduct are Authority policy in conformance with 
personnel policies of the State of Texas. Violation of these policies can be 
cause for disciplinary action up to and including dismissal, loss of pay, and/or 
criminal prosecution. 
(1) Gifts. No employee shall accept or solicit any gift, favor, or service that 
might reasonably tend to influence them in the discharge of their official 
duties or is offered them with the intent to influence their official conduct. 
(2) State-owned vehicles. Employees may use state-owned vehicles only in 
connection with official state business. Employees may not use state-owned 
vehicles in connection with any political campaign. 
(3) Outside business and professional activities. An employee may not engage in 
outside business or professional activities if such activities will interfere 
with the employee working hours or efficiency, create a conflict between the 
employee private interests and public duties, or use or appear to use 
information obtained in connection with the official duties of the employee. 
(4) Conflict of interest. Employees may not transact any business in their 
official capacities as employees of the Authority with any business entity of 
which they are an officer, agent, member, or owner of a controlling interest. 
(5) Investments. Employees may not make a personal investment in any enterprise 
which will create a conflict between their private interest and public duties. 
(6) Interest in projects of the Authority. Employees may not have, directly or 
indirectly, any financial or other personal interest in any contract or 
subcontract in connection with a project of the Authority if they are authorized 
in their official capacity to take part in negotiating, making, accepting, or 
approving such contract, or take part in performing any duty for the Authority 
in connection with such contract or subcontract.
(7) Political activities. Employees may serve as members of the governing bodies 
of school districts, cities, towns, or other local government districts but may 
not receive a salary for serving on such a body, may not be appointed to another 
state office by the governor, and may not allow activities connected with such 
an office to interfere with job-related duties. Additionally, employees may not 
use their official authority for the purpose of affecting the election of any 
official of federal or state government. In accordance with state and federal 
laws, state employees may not use official authority or influence or permit the 
use of a program administered by the state to interfere with or affect the 
result of an election or nomination of a candidate, or to achieve any other 
political purpose; or coerce, attempt to coerce, command, restrict, attempt to 
restrict, or prevent the payment, loan, or contribution of anything of value to 
a person or political organization for a political purpose. 
(8) Narcotic and alcoholic beverages. The use of illegal drugs, inhalants, 
alcoholic beverages and abuse of prescription drugs on duty by an employee, or 
appearance for duty under the influence of same shall be cause for immediate 
dismissal. 
(9) Sexual harassment. It is the policy of the Authority to ensure and promote 
equal opportunity for all employees and applicants. Pursuant to this commitment, 
the Authority maintains a strict policy prohibiting unlawful harassment, 
including sexual harassment. Unwelcome sexual attention, requests for sexual 
favors and other verbal, physical, or visual conduct of a sexual nature 
constitute sexual harassment. Sexual harassment occurs when submission to such 
conduct is made either implicitly or explicitly a term or condition of an 
individual's employment; or submission to or rejection of such conduct by an 
employee is used as the basis for employment decisions affecting the employee; 
or such conduct has the purpose or effect of unreasonably interfering with an 
individual's work performance or creating an intimidating, hostile, or offensive 
working environment. Any employee who feels that he or she is a victim of sexual 
harassment, including but not limited to, any of the conduct listed herein, by a 
supervisor, management official, other employee, contractor, supplier, or any 
other person in connection with employment by the Authority, should bring the 
matter to the immediate attention of his or her supervisor. If that would prove 
to be uncomfortable (as, for example, if the supervisor is the alleged 
harasser), an employee should directly contact his or her department head or the 
Director. Likewise, employees witnessing sexual harassment directed at other 
employees should immediately report any such incidents to their supervisor, 
their department head or the Director. Under no circumstances will an employee 
who in good faith reports alleged incidents of sexual harassment, or who 
cooperates in an investigation of any such report, be subjected to any form of 
reprisal or retaliation on account of his or her having made such report or 
cooperated in such investigation. Any employee who feels that he or she has been 
subjected to such reprisal or retaliation should report the reprisal or 
retaliation to his or her supervisor, department head or the Director. While the 
Authority is committed to preventing and punishing unlawful discrimination, 
harassment and retaliation, it also recognizes that false accusations of sexual 
harassment or retaliation may harm an innocent party who is falsely accused. 
Accordingly, any employee who, after an investigation, is found to have 
knowingly made a false accusation of sexual harassment or retaliation may be 
subject to appropriate disciplinary action. However, if an employee makes a 
report of what he or she in good faith believes to be sexual harassment or 
retaliation, the employee will not be subjected to disciplinary action even if 
the employee turns out to have been mistaken. Reported incidents and complaints 
will be investigated and violators of this policy will be subject to 
disciplinary action up to and including dismissal. 
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 May 20, 1998.
TRD-9808274
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER E.Indemnification
43 TAC sec.sec.50.50-50.54
STATUTORY AUTHORITY 
The new sections are proposed under Transportation Code, sec.361.042, which 
requires the Board to adopt rules for the regulation of its affairs and the 
conduct of its business. 
No statutes, articles, or codes, are affected by these proposed new sections.

sec.50.50. Indemnification by the Authority. 
To the extent allowed by law, and upon approval by the Board, any person made a 
party to or involved in any litigation, including any civil, criminal or 
administrative action, suit or proceeding, by reason of the fact that such 
person is or was a director, officer, administrator or other employee of the 
Authority or by reason of such persons' alleged negligence or misconduct in the 
performance of his or her duties as such director, officer, administrator, or 
other employee, will be indemnified by the Authority, to the extent funds are 
lawfully available and subject to any other limitations that exist by law, 
against liability and the reasonable expenses, including attorneys' fees, 
actually and necessarily incurred by him or her in connection with any action 
therein, except in relation to matters as to which it is adjudged that such 
director, officer, administrator, or other employee is liable for gross 
negligence or willful misconduct in the performance of his or her duties. A 
conviction or judgment entered in connection with a compromise or settlement of 
any such litigation shall not by itself be deemed to constitute an adjudication 
of liability for such gross negligence or willful misconduct. The right to 
indemnification will include the right to be paid by the Authority for expenses 
incurred in defending a proceeding in advance of its final disposition in the 
manner and to the extent permitted by the Board in its sole discretion.

sec.50.51. Expenses. 
As used herein the term "expenses" includes fines or penalties imposed and 
amounts paid in compromise or settlement of any such litigation only if:
(1) independent legal counsel designated by a majority of the Board, excluding 
those directors who have incurred expenses in connection with such litigation 
for which indemnification has been or is to be sought, shall have advised the 
Board that, in the opinion of such counsel, such director, officer, 
administrator, or other employee is not liable to the Authority for gross 
negligence or willful misconduct in the performance of his or her duties with 
respect to the subject of such litigation; and 
(2) a majority of such members of the Board shall have made a determination that 
such compromise or settlement was or will be in the best interests of the 
Authority.

sec.50.52.Procedure. 
If indemnification is allowed by law, any amount payable by way of indemnity 
under these rules may be determined and paid pursuant to an order of or 
allowance by a court under the applicable provisions of the laws of the State of 
Texas in effect at the time and pursuant to a resolution of a majority of the 
members of the Board, other than those who have incurred expenses in connection 
with such litigation for which indemnification has been or is to be sought. In 
the event that all of the members of the Board are made parties to such 
litigation, a majority of the Board shall be authorized to pass a resolution to 
provide for legal expenses for the entire Board.

sec.50.53.Additional Indemnification.
The right of indemnification provided by these rules shall not be deemed 
exclusive of any right to which any director, officer, administrator, or other 
employee may be entitled, as a matter of law, and shall extend and apply to the 
estates of deceased directors, officers, administrators, and other employees.

sec.50.54.Definitions. 
As used in this subchapter sec.sec.50.50-53 the term "other employee" shall have 
the meaning assigned to it by the Board, from time to time.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on May 20, 1998.
TRD-9808662
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER F.Public Records, Complaint Procedures and Debt Collection
43 TAC sec.sec.50.60-50.62
STATUTORY AUTHORITY 
The new sections are proposed under Transportation Code, sec.361.042, which 
requires the Board to adopt rules for the regulation of its affairs and the 
conduct of its business.
No statutes, articles, or codes, are affected by these proposed new sections.

sec.50.60. Public Records. 
(a) Subject to the limitations provided in the Turnpike Act, the Public 
Information Act, copyright law, and other applicable laws, information 
collected, assembled, or maintained by the Authority is public record open to 
inspection and copying during regular business hours.
(b) If classified data of the federal government or confidential information in 
the records of the Authority is the subject of an open records request under the 
Public Information Act, the Director may submit a request to the Texas attorney 
general under Government Code, sec.552.301, seeking a determination that the 
information is within an exception to the requirement to provide the information 
to the public. 
(c) Subject to the limitations of this section, the Authority will provide 
copies of its records upon request. The Authority may furnish copies at the 
rates published in its operating procedures, or may contract for the copies to 
be made at the expense of the person requesting them. The Authority may charge 
the fees specified in Government Code, sec.603.004, for the reproduction 
services listed in that section. The Authority may waive a charge if the cost to 
the Authority to collect the charge will exceed the amount of the charge. Copies 
may be certified by the Director or the secretary.

sec.50.61.Complaints Procedure.
(a) Pursuant to the Turnpike Act, sec.361.052, the board is to prepare and make 
available to the public information concerning procedures by which a complaint 
is filed with, and resolved by, the board. Those procedures are set forth in 
this section. 
(b) Complaints concerning any function or activity of the Authority may be 
addressed to the board in writing to: Secretary, Board of Directors, Texas 
Turnpike Authority, 125 E. 11th Street, Austin, Texas 78701-2483.
(c) The secretary shall keep an information file about each complaint filed with 
the board that the board has authority to resolve. 
(d) If a written complaint is filed with the board that the board has authority 
to resolve, the board shall, through the secretary, at least quarterly and until 
final disposition of the complaint, notify the parties to the complaint of the 
status of the complaint, unless the notice would jeopardize an undercover 
investigation. 

sec.50.62.Debt Collection. 
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Debtor - Any person or entity liable for an obligation owed to the Authority 
or against whom a claim or demand for payment has been made. 
(2) Delinquent - When a payment is past due by law or by customary business 
practice, and all conditions precedent to payment have occurred or been 
performed. 
(3) Demand letter - A writing setting forth the nature and amount of an 
obligation owed to the Authority that is delivered by United States certified 
mail, first class. 
(4) Obligation - A debt, judgment, claim, account, fee, fine, tax, penalty, 
interest, loan, charge, or grant. 
(5) Person - An individual, corporation, organization, business trust, estate, 
trust, partnership, association, and any other legal entity. 
(6) Security - Any right to have property owned by an entity with an obligation 
to the Authority sold or forfeited in satisfaction of the obligation, and any 
instrument granting a cause of action in favor of the Authority against another 
entity or that entity's property, such as bond, letter of credit, or other 
collateral that has been pledged to the Authority to secure an obligation. 
(b) Determination of liability. When a person who is responsible for an 
obligation to the Authority has failed or refused to make payments, the 
Authority will deem the obligation delinquent. 
(c) Collection from contractors. If a contractor of the Authority is delinquent 
and the Authority owes payment to that contractor, then the Authority will 
subtract the delinquent amount from payment. 
(d) Demand letters. 
(1) The Authority will issue a first demand letter no later than 30 days after 
the obligation becomes delinquent. 
(2) If no satisfactory response is received within 30 days after the date of the 
first letter, the Authority will send a second and final demand letter no later 
than 60 days after the obligation becomes delinquent. The second demand letter 
will include a deadline to respond and a notation that a copy is being sent to 
the Authority's counsel who may file a lawsuit on the account. 
(3) Demand letters will be mailed in an envelope bearing the notation "address 
correction requested" in conformity with 39 C.F.R. sec.265(d). If an address 
correction is provided by the United States Postal Service, the Authority will 
resend the demand letter to that address. 
(e) Records. The Authority will retain records of a delinquent obligation. A 
record shall contain documentation of the following information:
(1) the identity of the person or entity liable on any part of the obligation; 
(2) the physical address of the debtor's place of business;
(3) the debtor's residence, where applicable; 
(4) a post office box address where it is impractical to obtain a physical 
address, or when the post office box address is in addition to a correct 
physical address; 
(5) attempted contacts with the debtor; 
(6) the substance of communications with the debtor;
(7) efforts to locate the debtor and the assets of the debtor; 
(8) state warrants that may be issued to the debtor;
(9) current contracts with the Authority; 
(10) security interests that the Authority has against any assets of the debtor; 
(11) notices of bankruptcy, proofs of claim, dismissals and discharge orders 
received from the United States bankruptcy courts; and
(12) other information relevant to collection of the delinquent account. 
(f) Referrals of a delinquent obligation to legal counsel.
(1) Prior to referral of a delinquent obligation to legal counsel, the Authority 
will: 
(A) verify the debtor=s address and telephone number; 
(B) transmit no more than two demand letters to the debtor;
(C) verify that the obligation is not uncollectible; 
(D) prepare and file a proof of claim in the case of a bankruptcy unless the 
Authority is represented by legal counsel; and 
(E) file a claim in the probate proceeding if the debtor is deceased unless the 
Authority is represented by legal counsel. 
(2) The Authority will consider a delinquent obligation uncollectible and will 
make no further effort to collect if the obligation:
(A) has been dismissed or discharged in bankruptcy; 
(B) is subject to an applicable limitations provision that would prevent 
collection as a matter of law; 
(C) is owed by a corporation which has been dissolved, is in liquidation under 
Chapter 7 of the United States Bankruptcy Code, has forfeited its corporate 
privileges or charter, or, in the case of a foreign corporation, had its 
certificate of authority revoked unless circumstances indicate that the account 
is nonetheless collectible or that fraud was involved; 
(D) is owed by an individual who is located out-of-state, or outside the United 
States, unless a determination is made that the domestication of a Texas 
judgment in the foreign forum would more likely than not result in collection of 
the obligation, or that the expenditure of Authority funds to retain foreign 
counsel to domesticate the judgment and proceed with collection attempts is 
justified; 
(E) is owed by a debtor who is deceased, where probate proceedings have 
concluded, and where there are no remaining assets available for distribution; 
or 
(F) is owed by a debtor whose circumstances demonstrate a permanent inability to 
pay or make payments toward the obligation. 
(3) In making a determination of whether to refer a matter to legal counsel, the 
Authority will consider: 
(A) the expense of further collection procedures; 
(B) the size of the debt; 
(C) the existence of any security; 
(D) the likelihood of collection through passive means such as the filing of a 
lien; 
(E) the availability of resources to collect the obligation; and 
(F) policy reasons or other good cause. 
(4) The Authority will refer a delinquent obligation to legal counsel for 
further collection efforts not later than the 30th day after the date the 
Authority determines that normal collection procedures for a delinquent 
obligation have failed. 
(g) Supplemental and alternative collection procedures. 
(1) The Authority, unless represented by legal counsel, will record a lien 
securing the delinquent obligation in the appropriate records of the county 
where the debtor's principal place of business, or, where appropriate, the 
debtor's residence, is located or in such county as may be required by law as 
soon as is practicable. Unless the delinquent obligation has been paid in full, 
any lien securing the indebtedness may not be released without the approval of 
the attorney representing the Authority. 
(2) The Authority will utilize the "warrant hold" procedures of the Comptroller 
of Public Accounts authorized by Government Code, sec.403.055, to ensure that no 
treasury warrants are issued to debtors until the debt is paid. 
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 May 20, 1998.
TRD-9808275
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Earliest possible date of adoption: July 5, 1998
For further information, please call: (512) 463-8630