ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 4. AGRICULTURE PART II. Texas Animal Health Commission CHAPTER 36.Exotic Livestock and Fowl 4 TAC sec.36.1, sec.36.2 The Texas Animal Health Commission adopts amendments to sec.36.1 and sec.36.2, concerning exotic livestock and fowl, with changes to the proposed text as published in the May 1, 1998, issue of the Texas Register (23 TexReg 4160). The sections are being adopted with changes to correct typographical errors published in the May 1, 1998, issue of the Texas Register. In sec.36.1, paragraphs (1) and (6), lama should have been spelled as llama. In sec.36.2, the word "test" in the definition of "Exotic Bovidae" was inadvertently deleted. In the definition of "Camelidae", axilary should have been spelled as axillary. The sections are amended to update the terms of "Camelidae", "Cervidae", and "Bovidae". Camelidae is amended in response to industry request to bring regulations into better focus on known patterns of disease. The amendment to Cervidae resolves conflicting regulations. The amendment to Bovidae brings regulation into alignment with accepted disease control practices. Nineteen comments were received in favor of the amendments and three were against. One commenter requested rescinding the 30-day test interval for TB and brucellosis for Llamas that was imposed last July. Another commenter requested rescinding the 30-day interval requirement for brucellosis testing alpacas and llamas for health certification for transport and entry to livestock shows. As a llama breeder the commenter feels safe with the longer interval. As a 4H Club leader, the commenter feels that the 30-day requirement is an unnecessary financial burden on the show participants especially the youth. Another commenter stated, "Please leave sec.36.1 and sec.36.2 and do not take this out. As camelidae owners and also showing them, it makes our life easier." The commission adopts these sections as amended. The amendments are adopted under the Texas Agriculture Code, Chapter 161, sec.161.041b and sec.161.081a, which authorizes the Commission to enact rules to eradicate communicable disease. sec.36.1. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Camelidae-Members of the family of animals which includes camels, lamas, and vicunas. The domestic members of the genus lama includes the llama, alpaca, and guanaco. (2) Commission--Texas Animal Health Commission. (3) Exotic Bovidae--Non-indigenous members of the family of animals which includes water buffalo, gnu (wildebeast), addax, antelope and nilgai (among others). (4) Exotic Cervidae--Non-indigenous members of the family of animals which includes deer, elk, moose, caribou, reindeer and the sub-family musk deer. (5) Exotic fowl--Any avian species that is not indigenous to this state. The term includes ostriches. (6) Exotic livestock--Grass-eating or plant-eating, single-hooved or cloven- hooved mammals that are not indigenous to this state and are known as ungulates, including animals from the swine, horse, tapir, camel, llama, rhinoceros, elephant, deer, and antelope families. (7) Ratite--Exotic fowl with a flat breastbone and small or nonexistent wings, such as ostriches, emu, moa, and kiwi. sec.36.2. General. (a)-(b) (No change.) (c) The following named species entering the State of Texas shall meet the specific requirements stated and this information recorded on the certificate: (1) Exotic cervidae--Negative to a brucellosis test within 30 days prior to entry. Tuberculosis test requirements are specified in sec.43.23 of this title (relating to Requirements for Entry into Texas). (2) Exotic Bovidae--Negative to a brucellosis test within 30 days prior to entry. Negative to a tuberculosis test within 60 days prior to entry. (3) Camelidae--Negative to a brucellosis and axillary skin test for tuberculosis within six months prior to entry, on all animals 18 months of age and older. (4) (No change.) (5) Ratites-- (A)-(C) (No change.) (D) Ratites destined for slaughter only may enter Texas accompanied by an entry permit and either a waybill or health certificate without meeting the requirements of subparagraphs (A)-(C) of this paragraph . (d) (No change.) This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 15, 1998. TRD-9809553 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: July 5, 1998 Proposal publication date: May 1, 1998 For further information, please call: (512) 719-0714 TITLE 7. BANKING AND SECURITIES PART I. Finance Commission of Texas CHAPTER 4.Currency Exchange 7 TAC sec.4.3 The Finance Commission of Texas (the commission) adopts an amendment to sec.4.3, concerning reporting and recordkeeping requirements for currency transmitters that engage in currency exchange transactions. The amendment is adopted without changes to the proposed text as published in the May 8, 1998, issue of the Texas Register (23 TexReg 4437), and the text will not be republished. Section 4.3 specifies the reporting and recordkeeping requirements which must be met by persons conducting currency exchange or currency transmission transactions. Section 4.3(a) as amended clarifies that "currency exchange" includes transactions wherein currency transmitters in Texas accept for transmission the currency of one government and pay out at the receiving end in the currency of another government. Thus, currency transmitters which also engage in currency exchange transactions must comply with the currency exchange reporting and recordkeeping requirements set forth in sec.4.3(e)(1). Section 4.3(i) as amended provides that persons engaged in currency exchange transactions may, with the prior written approval of the banking commissioner, comply with 31 Code of Federal Regulations, Part 103, in lieu of compliance with the currency exchange reporting and recordkeeping requirements set forth in sec.4.3(e)(1). The commission received no comments regarding the proposals. The amendment is adopted pursuant to the Finance Code, sec.153.002(2), which authorizes the commission to adopt rules "necessary to implement this chapter, including ...recordkeeping and reporting requirements of a license holder." This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 12, 1998. TRD-9809497 Everette D. Jobe Certifying Official Finance Commission of Texas Effective date: July 2, 1998 Proposal publication date: May 8, 1998 For further information, please call: (512) 475-1300 CHAPTER 9.Rules of Procedure for Contested Case Hearings, Appeals, and Rulemakings SUBCHAPTER B.Contested Case Hearings 7 TAC sec.9.34 The Finance Commission of Texas, the Texas Department of Banking, the Savings and Loan Commissioner and the Consumer Credit Commissioner (the agencies) adopt an amendment to sec.9.34, concerning post-hearing proceedings. The amendment is adopted without changes to the proposed text as published in the May 8, 1998, issue of the Texas Register (23 TexReg 4438), and the text will not be republished. The amendment to sec.9.34 clarifies the original intent of the section, and eliminates confusion as to the time and manner in which exceptions, replies to exceptions, and briefs should be filed. The amendment to subsection (b)(4) makes clear that, after the case is under submission, the agency head can remand it back to the administrative law judge for additional briefing from the parties or for reopening of the evidence. New subsection (b)(5) clarifies that the agency head can also take any other lawful and appropriate action with regard to the case. New subsection (c) specifies how to notify the agency of pertinent court decisions that may come out after briefing on exceptions to the proposal for decision is complete and the case is under submission to the agency head for decision. Finally, the amendment to subsection (d) provides that the administrative law judge must recirculate a proposal for decision that on remand has been substantially revised, before it is sent back to the agency head for consideration. The agencies received no comments regarding the proposals. The amendment is adopted pursuant to Government Code sec.2001.004, which requires all administrative agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures. The amendment is also adopted under specific rulemaking authority in the substantive statutes administered by the agencies. Finance Code, sec.31.003(a)(5), authorizes the finance commission to adopt rules necessary or reasonable to facilitate the fair hearing and adjudication of matters before the banking commissioner and the finance commissioner. Finance Code, sec.152.102, authorizes the finance commission to adopt rules necessary for the enforcement and orderly administration of that chapter (regulating sale of checks). Finance Code, sec.153.002, authorizes the finance commission to adopt rules necessary to implement that chapter (regulating currency exchange and transmission). Finance Code, sec.154.051(b), authorizes the department of banking to adopt rules concerning matters incidental to the enforcement and orderly administration of that chapter (regulating prepaid funeral benefits). Finance Code, sec.11.302, authorizes the finance commission to adopt rules applicable to state savings associations or to savings banks. Finance Code, sec.96.002(a)(2), and sec.66.002, also authorize the savings and loan commissioner and the finance commission to adopt procedural rules for deciding applications filed with the savings and loan commissioner or the savings and loan department. Finance Code, sec.11.304, authorizes the finance commission to adopt rules necessary for supervising the consumer credit commissioner and for ensuring compliance with Finance Code, Chapter 14 and Title 4, plus amendments to the source law made by Acts 1997, 75th Legislature, Chapter 1396). Texas Civil Statutes, Article 5069-3A.901, also authorizes the finance commission to adopt rules necessary for the enforcement of Article 5069-3A.001. Finance Code, sec.371.006, further authorizes the consumer credit commissioner to adopt rules necessary for the enforcement of Finance Code, Chapter 371. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 12, 1998. TRD-9809498 Everette D. Jobe Certifying Official Finance Commission of Texas Effective date: July 2, 1998 Proposal publication date: May 8, 1998 For further information, please call: (512) 475-1300 PART II. Texas Department of Banking CHAPTER 17.Trust Company Regulation SUBCHAPTER A.General 7 TAC sec.17.3 The Finance Commission of Texas (the commission) adopts new sec.17.3, concerning sale or lease agreements between a trust company and an officer, director, manager, managing participant, principal shareholder, or principal participant of the trust company, or an affiliate of the trust company (insider). The section is adopted without changes to the proposed text as published in the May 8, 1998, issue of the Texas Register (23 TexReg 4439), and the text will not be published. Under Texas Civil Statutes, Article 342a-4.107(a), if the approval of a disinterested majority of a trust company's board cannot be obtained, a trust company may not sell or lease an asset to an insider or purchase or lease an asset from an insider without the prior approval of the banking commissioner. However, under Texas Civil Statutes, Article 342a-4.107(b), a trust company may not consummate, renew, or extend a lease involving real property in which an insider has an interest without the prior written approval of the banking commissioner. New sec.17.3(a) requires a sale or lease agreement between a trust company and an insider to be in writing. Subsection (b) specifies that such agreements must have terms and rates that are substantially equivalent to or more favorable to the trust company than those prevailing at the time for comparable transactions with or involving nonaffiliated parties. Subsection (c) clarifies the phrase "approval of a disinterested majority of the board," and requires board consideration of all insider sale or lease agreements. Subsection (d) specifies the form and content of the written request which must be submitted to the banking commissioner if a trust company must seek the prior written approval of the banking commissioner to enter into a sale or lease agreement with an insider. Finally, subsection (e) sets out applicable record keeping requirements, and proposed subsection (f) specifies that subsection (c) is not applicable to a legally binding, written lease, entered into by a trust company prior to June 16, 1991, until such lease is renewed or extended beyond its original term. The commission received no comments regarding the proposals. The section is adopted under Texas Civil Statutes, Article 342a-1.003(a), which authorizes the commission to adopt rules to implement and clarify the law and to preserve or protect the safety and soundness of trust companies. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 15, 1998. TRD-9809503 Everette D. Jobe General Counsel Texas Department of Banking Effective date: July 2, 1998 Proposal publication date: May 8, 1998 For further information, please call: (512) 475-1300 CHAPTER 21.Trust Company Corporate Activities SUBCHAPTER A.Fees and Other Provisions of General Applicability 7 TAC sec.sec.21.1-21.3 The Finance Commission of Texas (the commission) adopts new sec.21.1, an amendment to sec.21.2, and new sec.sec.21.3, 21.31, 21.32, 21.41, and 21.42, concerning corporate filings for trust companies. The sections are adopted without changes to the proposed text as published in the May 8, 1998, issue of the Texas Register (23 TexReg 4440), and the text will not be published. Effective September 1, 1997, Texas Civil Statutes, Articles 342a-1.001 et seq, became the governing law for trust companies under the jurisdiction of the Texas Department of Banking (the department). New regulations implementing this law require proposal and adoption. New sec.21.1 pertains to definitions applicable to corporate filings. The amendment to sec.21.2 adds correct cross-references to the newly adopted sections. New sec.21.3 reduces regulatory burden on trust companies by establishing guidance for utilizing the expedited procedure for certain corporate applications that require the approval of the banking commissioner. New sec.21.31 specifies the information which must initially be filed with the banking commissioner by a trust company before the trust company may exercise its authority to accept trust deposits pursuant to Texas Civil Statutes, Article 342a-5.401. New sec.21.31 also specifies recordkeeping requirements. New sec.21.31 further specifies that exempt trust companies may not engage in trust deposits. New sec.21.32 specifies the investments which a trust company may utilize for purposes of maintaining security for trust deposits pursuant to Texas Civil Statutes, Article 342a-5.401, authorizes a trust company to utilize certificates of deposit for purposes of maintaining security for trust deposits, and requires a trust company to disclose to its clients that the trust deposits are not insured by the Federal Deposit Insurance Corporation if that is the case. New sec.21.32 also requires that the value of the securities may be evaluated daily to ensure that the deposits are fully secured, or a margin of 10% must be maintained at all times; however, the value of the securities must be evaluated at least monthly to ensure that the deposits are fully secured. The market value of the securities must be equal to or greater than the total amount of the deposits plus any interest, accrued and unpaid. New sec.21.32 also specifies recordkeeping requirements. New sec.21.41, concerning written notices and applications for change of home office, sets out when a notice and an application are necessary, the information which must be included in the filing with the banking commissioner, sets publication standards, and clarifies the role of the banking commissioner in the process. New sec.21.42, concerning establishing and closing of additional offices by trust companies subject to regulation by the banking commissioner, sets out the regulatory procedures for establishing and closing an additional office other than the home office of a trust company. Several of the new sections refer to supervisory or regulatory concerns as a basis for denial or conditions on approval of an application. The industry should specifically note that the banking commissioner will evaluate whether the applicant is adequately prepared to address Year 2000 issues, a source of significant supervisory concerns. The Federal Financial Institutions Examination Council provides useful information at http://www.ffiec.gov/y2k/default.htm. The commission received no comments regarding the proposals. The sections are adopted under Texas Civil Statutes, Article 342a-1.003(1), (a)(2), which authorize the commission to adopt rules necessary or reasonable to implement and clarify Texas Civil Statutes, Article 342a-1.001 et seq, to preserve the safety and soundness of trust companies, to provide for recovery of the cost of maintenance and operation of the department and the cost of enforcing the law through the imposition and collection of ratable and equitable fees for notices, applications, and examinations, and to facilitate the fair hearing and adjudication of matters before the commissioner and the commission. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 12, 1998. TRD-9809504 Everette D. Jobe General Counsel Texas Department of Banking Effective date: July 2, 1998 Proposal publication date: May 8, 1998 For further information, please call: (512) 475-1300 SUBCHAPTER C.Trust Deposits 7 TAC sec.21.31, sec.21.32 The new sections are adopted under Texas Civil Statutes, Article 342a- 1.003(a)(1), which authorizes the commission to adopt rules to implement and clarify Texas Civil Statutes, Articles 342a-1.001 et seq to preserve the safety and soundness of trust companies, and to facilitate the fair hearing and adjudication of matters before the commissioner and the commission. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 12, 1998. TRD-9809505 Everette D. Jobe General Counsel Texas Department of Banking Effective date: July 2, 1998 Proposal publication date: May 8, 1998 For further information, please call: (512) 475-1300 SUBCHAPTER D.Trust Company Offices 7 TAC sec.21.41, sec.21.42 The new sections are adopted under Texas Civil Statutes, Articles 342a-1.003, which authorizes the commission to adopt rules necessary and reasonable to implement and clarify the statute, to preserve the safety and soundness of trust companies, and to facilitate the fair hearing and adjudication of matters before the commissioner and the commission. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 12, 1998. TRD-9809506 Everette D. Jobe General Counsel Texas Department of Banking Effective date: July 2, 1998 Proposal publication date: May 8, 1998 For further information, please call: (512) 475-1300 TITLE 10. COMMUNITY DEVELOPMENT PART V. Texas Department of Economic Development CHAPTER 160.Product Commercialization 10 TAC sec.sec.160.1-160.9 The Texas Department of Economic Development (Department) adopts the repeal of Chapter 160 Product Commercialization in its entirety, without changes to the proposed text as published in the April 3, 1998, issue of the Texas Register (23 TexReg 3400). The repeal is necessary to accurately reflect current law. Effective September 1, 1997, Senate Bill 932 of the 75th Legislature repealed Government Code, Chapter 481, Subchapter U, authorizing the Product Commercialization Fund. Therefore, the reason for adopting the rule no longer exists. There were no comments received concerning adoption of the repeals. The repeals are adopted under the authority of the Texas Government Code sec.481.0044(a), which authorizes the Texas Department of Economic Development to promulgate rules necessary for the administration of department programs and may adopt rules for its internal management and control, and the Administrative Procedures Act, Government Code, Chapter 2001, which prescribes the standards for agency rulemakings. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 11, 1998. TRD-9809418 Gary Rosenquest Chief Administrative Officer Texas Department of Economic Development Effective date: July 1, 1998 Proposal publication date: April 3, 1998 For further information, please call: (512) 936-0181 CHAPTER 161.Rural Industrial Development Finance Plan Closing Procedures 10 TAC sec.161.92 The Texas Department of Economic Development (Department) adopts the repeal of Chapter 161. Rural Industrial Development Finance Plan Closing Procedures in its entirety, without changes to the proposed text as published in the May 1, 1998, issue of the Texas Register (23 TexReg 4160). The repeal is necessary to accurately reflect current law. Agency review of this rule has found that the reason for readoption has ceased to exist. There were no comments received concerning adoption of the repeal. The repeal is adopted under the authority of Texas Government Code sec.481.044(a) of the Texas Government Code, which authorizes the Department to promulgate rules necessary for the administration of department programs and may adopt rules for its internal management and control, and the Administrative Procedure Act, Texas Government Code, Chapter 2001, which prescribes the standards for agency rulemakings. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 11, 1998. TRD-9809417 Gary Rosenquest Chief Administrative Officer Texas Department of Economic Development Effective date: July 1, 1998 Proposal publication date: May 1, 1998 For further information, please call: (512) 936-0181 CHAPTER 163.Product Development Fund 10 TAC sec.sec.163.1-163.9 The Texas Department of Economic Development (Department) adopts the repeal of Chapter 163 Product Development in its entirety, without changes to the proposed text as published in the April 3, 1998, issue of the Texas Register (23 TexReg 3401). The repeal is necessary to accurately reflect current law. Effective September 1, 1997, Senate Bill 932 of the 75th Legislature repealed Government Code, Chapter 481, Subchapter Q, authorizing the Product Development Fund. Therefore, the reason for adopting the rule no longer exists. There were comments received concerning adoption of the repeals. The repeals are adopted under the authority of the Texas Government Code sec.481.0044(a), which authorizes the Texas Department of Economic Development to promulgate rules necessary for the administration of department programs and may adopt rules for its internal management and control, and the Administrative Procedures Act, Government Code, Chapter 2001, which prescribes the standards for agency rulemakings. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 11, 1998. TRD-9809416 Gary Rosenquest Chief Administrative Officer Texas Department of Economic Development Effective date: July 1, 1998 Proposal publication date: April 3, 1998 For further information, please call: (512) 936-0181 CHAPTER 199.Electric State Business Daily 10 TAC sec.sec.199.101-199.116 The Texas Department of Economic Development (department) adopts new sections 199.101-199.116, relating to the Electronic State Business Daily. Sections 199.103, 199.108,199.109, and 199.111 are adopted with changes to the proposed text as published in the March 20, 1998, issue of the Texas Register (23 TexReg 2926). Sections 199.101, 199.102, 199.104-199.107, 199.110, and 199.112-199.116 are adopted without changes to the proposed text and will not be republished. Senate Bill 1380 of the 75th Legislature (SB 1380) amended the Texas Government Code by adding sec.2155.074, creating an electronic state business daily to give notice before a state agency makes a procurement with a value that exceeds $25,000. SB 1380 directs the department to produce and post the business daily in an electronic format and to make the business daily available on the Internet. SB 1380 authorizes the department to adopt rules, prescribe forms, and require information necessary to administer the statute. The proposed rules set forth the definitions and process needed to post state procurement opportunities on the Internet. The rules establish agency contacts, clarify the duties and responsibilities of agencies with regard to posting procedures, and provide processes for posting follow-up and record keeping. The department received comments regarding the proposed rules during the 30 day public comment period which are set forth, along with the department's responses, as follows: Comment: The impact of SB 1380 is that there can be no accelerated procurement other than an emergency procurement and that there will be a minimum of 30 days for any MIS procurement exceeding $25,000. Response: The only exceptions authorized by Government Code sec.2155.074 from the 21 day or 14 day posting requirements (for state agency procurements that will exceed $25,000 in value) are for emergency procurements or procurements made by a state agency to which Education Code sec.512.9335 or sec.73.115 applies. The Act does not make exception for the purchase of automated information systems pursuant to Government Code, Chapter 2157. The authorization of additional exceptions requires legislative action. Comment: The proposed sec.199.103(7) definition of emergency purchases appears to be unduly restrictive and should conform to the language of Government Code sec.2155.074(i); additional guidance is needed regarding avoidance of "undue additional cost to the state." Response: Emergency procurement is defined at Government Code sec.2155.074(i). The department cannot quantify "undue additional cost," as the term is used in that section, but thinks it must be determined by each state agency after careful consideration of all facts and circumstances. We do note, however, that the more precise statutory language of sec.2155.074(i), relating to "a hazard to life, health, safety, welfare, or property," appears to set a very high standard for exceptions to the required minimum 14 day posting period. We think that this definition includes emergency purchases as defined by the State Purchasing and General Services Act, Government Code, sec.2155.001. The department has deleted the definition of emergency purchases in the rules and revised the language of sec.199.109 to clarify that it addresses emergency procurements and not emergency purchases only. Comment: The definition found at proposed sec.119.103(11) for a procurement opportunity states that it means the bid or proposal solicitation package or notice that includes specific information for each purchase of goods or services, including construction projects. Because a construction project is not a good or service, amend proposed sec.199.103(8), which defines goods and services, to a definition of procurement contract or revise the definition of eligible procurement to include a specific definition of construction project. Also, delete the phrase "purchases of goods or services" from the definition of eligible procurement. Response: Government Code sec.2155.074(a) states that the posting requirements apply to state agency procurements that will exceed $25,000 in value, including a procurement that is related to a construction project. The terms "goods and services," "procurement contract," and "construction project" are used in the statute, but only goods and services has a statutory definition, which is referenced in the proposed rules. Because the statute does not define the terms "procurement contract" or "construction project," the department declines to do so, other than to say that it thinks the terms should be given their common and ordinary meanings. However, the department agrees that the definitions of procurement opportunity and eligible procurement are somewhat unclear as they relate to the statute, and the definitions have been revised to more closely track the language of the statute. Comment: Amend proposed sec.199.103(10), the definition of prescribed form, to allow each agency to provide an equivalent format for posting procurements, approved by the department, other than the entry screens on the system, to take into account all of the various types of procurements used by state agencies. Provide for a separate prescribed form for construction contracts. Response: The department thinks that the intent of SB 1380 was that information regarding procurement opportunities at state agencies should be consistent and user friendly. Having each agency use the same format furthers this intent. If, through use, state agencies, the department, or the users determine that the format needs to be revised to better serve the users' needs, the department will revise the form at that time. To facilitate the entry of a large number of notices, the Department has cooperated, where requested, to provide FTP information entry to the system. However, it anticipates that the same format will continue to be required for all procurement notices. Comment: The ability of any individual to register with the system in order to add procurement opportunities raises security concerns. Develop a procedure whereby only those individuals authorized by a state agency to enter procurement opportunity information may become registered agents. Response: The department does not want to limit a state agency's choice of a registered agent. Each state agency will have one designated supervisor with the authority to add or delete additional registered agents at the agency. Only the supervisor will be allowed access to postings for adds/changes/deletes. Access will be password protected to avoid breaches of security. However, each agency may want to adopt additional internal criteria or procedures for determining who should have access to its procurement information posted on the business daily. Comment: Proposed sec.199.105 requires each agency to have Internet access by September 1, 1998, if feasible. Agencies may well find this cost prohibitive and thus not feasible. We assume that agencies unable to comply may continue to send information via E-mail or interagency mail. Response: Government Code sec.2155.074(l) provides that the department's rules shall require each agency, to the extent feasible, to directly and electronically post its own notices or solicitation packages. Section 2155.074(f) states that agencies may not charge a fee designed to recover the cost of preparing and gathering information to be published in the business daily, as these are considered to be a part of a procuring agency's responsibility to inform potential bidders or offerors of its procurement opportunities. Therefore, while the department has not determined what costs are feasible for a state agency, it appears that the legislature's expectation is that agencies will absorb the necessary costs of compliance with the statute, which the department thinks may include the cost of Internet access. Comment: Proposed sec.199.106 limits an agency's fee for direct costs to those outlined in the Open Records Act. Since the statute does not refer to the Open Records Act and agency costs may exceed those outlined in the Act, this restriction should be deleted from the proposed rules. Response: The department does not agree with the comment. The department's interpretation of Government Code sec.2155.074(e), which states that a state agency may recover the direct cost of providing the public access to the electronic business daily only by charging a fee for downloading procurement notices and bid or proposal solicitation packages, means the cost of providing a printed copy of the notice or package, since there is no other direct cost. Because this information would be available to a requestor under the Open Records Act, the department thinks it is reasonable to require agencies to charge the same amount whether the information is requested under that Act or Government Code sec.2155.074(e). Comment: Proposed sec.199.108, which requires a state agency to amend a posting within 24 hours after it makes a determination not to make a procurement is onerous and not feasible. Response: The department's understanding of the legislative intent was to establish a system that would make information regarding state agency procurement opportunities accessible and useful to the public. It would defeat the purpose of the legislation if postings were not accurate. Therefore, the rules require state agencies to amend their postings to provide accurate information in a timely fashion. Comment: Revise the last sentence of proposed sec.199.108(a) and (b) to read: "If the state agency decides not to make the procurement, the state agency must amend the posting to indicate the effective date of the cancellation with two business days of canceling the procurement." While most cancellations can be posted within 24 hours of cancellation, a requirement of 24 hours notice may prove to be impractical in some instances (e.g., cancellations late on a Friday afternoon or immediately prior to a holiday). Response: The department agrees with this comment and has changed sec.199.108(a) and (b) accordingly. Comment: Given all the new obligations placed on agencies by this new statute, requirement to post emergency purchases found at sec.199.109(a) which is not a part of the statute, should be dropped. Response: The department does not agree with the comment. The rule proposed by the department attempts to explain agency requirements regarding emergency postings in a way that is consistent with the language of Government Code sec.2155.074, subsections (i) and (n). Those subsections do not exempt emergency purchases from posting, but state that the minimum posting times do not apply. Comment: Proposed sec.199.110(b) requires an agency's agent to answer "all questions on the registration form." However, the form is not attached. Therefore, should the questions be unreasonable, lengthy, or not directly related, we object to this provision. Response: Proposed sec.199.110(b) requires agencies to complete a one-time, on- line registration form, and states that all questions on the form must be completed in order for the registration to become effective. The purpose of the registration form is to ensure security restrictions are not violated and to collect the information required for the posting notices. The contact information will be auto-entered on each posting to save time. In keeping with the intent of SB 1380, the information provided should be consistent among the state agencies to the greatest extent possible to facilitate the public's use of the system. The department is only requesting information that is currently in the Texas Marketplace, and has no reason or intent to ask another state agency for information that is unreasonable, unnecessarily lengthy, or unrelated to the system. The department will consider and assist with specific agency exceptions to requested information if and when good cause for such exceptions can be demonstrated. Comment: Review the user identification name and access password requirements in light of Government Code sec.2054.060, relating to Digital Signatures. Response: The department plans to set up the system initially with passwords, which will be used to ensure user identification. Digital signatures are not required. The department may work toward including the use of digital signatures for authentication purposes in the future; however, at present, requiring digital signatures would be an added expense for many state agencies. Comment: Revise sec.199.111(c)(1) to clarify the extent of the description requirements. The notice requirements in the rules may be more restrictive than what Government Code sec.2155.074 requires. It would be impractical to list each bid item in a notice. Revise sec.199.111(c)(1)(H) to include contract number or other acceptable identification number. In sec.199.111(c)(1)(G), delete the phrase "as defined by the State Purchasing and General Services Act," because this does not cover letters of interest required under agency professional services procurement rules. Response: Most of the notice requirements of sec.199.111 are taken from Government Code sec.2155.074, which requires that information be posted for each procurement estimated to exceed $25,000 in value. The only additional information requested is intended to assist the user in quickly identifying the purpose of the procurement and to assist the user in searching the system. For a bid notice, only a brief description of the items to be purchased is required. For full bid postings (14 days) the complete bid package must be attached and each item must be listed. The department has revised sec.199.111(c)(1)(H), which required a purchase requisition number, to make it clear that other types of information, such as a contract number or other identification number, may be entered in the notice where appropriate. The department has revised sec.199.111(c)(1)(G) to delete language as suggested by the comment. Comment: Regarding proposed sec.199.112(b), agencies should not be responsible for mistakes due to computer malfunction or human error at the Department. Response: Proposed sec.199.112(b) states that the system will automatically purge postings according to the bid closing date entered by the registered agent, and that each agency is responsible for ensuring that the procurement remains posted for the minimum number of days. This means that the agencies are responsible for correctly calculating the bid closing date, which gives them the maximum control possible for ensuring that their postings comply with the statutorily required posting periods. In addition, the department has purchased a new server to minimize the possibility of system failure. Comment: Revise sec.sec.199.111 and 199.114 of the proposed rules to allow agencies to provide an Internet link in the system to a state agency's Internet site. Response: The department discussed the possibility of allowing agencies to provide Internet links, rather than uploading lengthy bid packages, with legislative leadership. The intent of the legislation was for users to have one- stop shopping for bid information in the form of a centralized information system, which would not be fulfilled by providing a series of Internet links or a referral system. Therefore, absent an Attorney General Opinion or other authoritative guidance to the contrary, the department plans to continue to require agencies to submit information to the system rather than providing links. Comments against the proposed rules were received from the Texas Department of Human Services, the Texas Department of Information Resources, the Texas Parks and Wildlife Department, and the Texas Department of Transportation. The rules are adopted pursuant to Government Code, sec.481.0044(a), authorizing the governing board of the department to adopt rules for the administration of department programs, Government Code, sec.2155.074(l), authorizing the department to adopt rules for the Electronic State Business Daily, and Government Code, Chapter 2001, Subchapter B, setting forth the agency rulemaking process. The State Purchasing and General Services Act, Government Code, Title 10, Subtitle D, and Government Code, Chapter 2254, relating to Professional and Consulting Services, are affected by the rules. sec.199.103.Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Act--the State Purchasing and General Services Act, Texas Government Code, subtitle D, sec.2151.001 et seq. (2) Commission--the General Services Commission (3) Consultant services--as defined at Texas Government Code sec.2254.021 (4) Department--the Texas Department of Economic Development (5) Electronic State Business Daily or Business Daily--the eligible state agency procurement opportunities exceeding $25,000 in value made available in electronic format via the Texas Marketplace (6) Eligible procurement--all state agency procurement opportunities that will exceed $25,000 as defined at Government Code sec.2155.074(a) (7) Goods and/or services--as defined in the State Purchasing and General Services Act, Texas Government Code, sec.2155.001 (8) Potential bidders or offerors--those businesses or other entities that are interested in submitting a bid or proposal for state agency procurement opportunities (9) Prescribed form--the entry screens available in the Texas Marketplace system (10) Procurement opportunity--a bid or proposal solicitation package or notice that includes specified information for each eligible procurement as defined at Government Code sec.2155.074(a), to be acquired by a state agency (11) Professional services--as defined at Texas Government Code sec.2254.002 (12) Registered agent--a representative designated by each state agency responsible for posting eligible procurement opportunities in the Texas Marketplace (13) State agency--as defined in the State Purchasing and General Services Act, Texas Government Code, sec.2151.002(2) (14) Texas Marketplace--the electronic business opportunity database available on the Internet and World Wide Web, developed and maintained by the Texas Department of Economic Development, which provides a single point of information for all eligible state agency procurement opportunities on the Internet and World Wide Web at http://www.Texas-one.org sec.199.108.Posting Time Requirements. (a) Notices for eligible procurements must be posted for the latest of 21 calendar days after the date the notice is first posted; the date the state agency will no longer accept bids, proposals, or other applicable expressions of interest for the procurement; or, the date the state agency decides not to make the procurement. If the state agency decides not to make the procurement, the state agency must amend the posting to indicate the effective date of the cancellation within two business days of canceling the procurement. (b) If the state agency posts the entire bid or proposal solicitation package for an eligible procurement, postings must remain on the Texas Marketplace until the latest of 14 calendar days after the date the bid or solicitation package is first posted; the date the state agency will no longer accept bids, proposals, or other applicable expressions of interest for the procurement; or, the date the state agency decides not to make the procurement. If the state agency decides not to make the procurement, the state agency must amend the posting to indicate the effective date of the cancellation within two business days of canceling the procurement. (c) A contract or procurement award is void if made by a state agency in violation of the applicable minimum required posting time. sec.199.109.Emergency Procurements. (a) Emergency procurements must be posted to the business daily in the Texas Marketplace system, but the minimum posting times in this chapter do not apply. (b) These posting requirements are in addition to existing Commission procedures governing emergency procurements. sec.199.111.Procurement Opportunity Posting Procedures. (a) Each state agency must comply with the following procedures when posting procurement notices on the electronic state business daily using the Texas Marketplace system. The Department will provide written step-by-step instructions for accessing the Texas Marketplace system. The Department will also provide technical assistance via electronic mail from the Texas Marketplace system, interagency mail at 1700 North Congress, Suite 200, or by telephone at (512) 936-0223. (b) Information for each eligible procurement opportunity must be data entered directly and electronically by the registered agent, via Internet access, to the Texas Marketplace system on the World Wide Web using the prescribed form. The registered agent must enter the minimum required information from subsection (c) of this section using the on-line form provided by the Department in the Texas Marketplace system. (c) A state agency's registered agent must post the following in the business daily for each procurement that the state agency will make that is estimated to exceed $25,000 in value. (1) A notice that includes at a minimum the following information: (A) a short title, or headline, describing the purchase opportunity; (B) a brief description of the goods or services to be procured; (C) the estimated quantity of goods or services to be procured; (D) the estimated date on which the goods or services to be procured will be needed; (E) state agency name, contact name, mailing and physical address (including city, state, and zip code), and business telephone number of the state agency's registered agent a person may contact to obtain all necessary information related to making a bid or proposal or other applicable expression of interest in the procurement contract; (F) e-mail address for registered agent or procurement contact, if available; (G) the last date and time on which bids, proposals or other applicable expressions of interest will be accepted; (H) the agency's purchase requisition number, contract number, or other identification number; (I) the State of Texas commodity classification code (class item number) for the goods or services, if applicable; and (J) if applicable, the previous price paid by the state agency for the same or similar goods or services. (2) The registered agent may also post the following optional information in the prescribed entry form: (A) the fax number for the registered agent or procurement contact; (B) the state agency's toll-free telephone number; or (C) the universal resource locator (URL) address for the state agency's homepage. (3) The entire bid or proposal solicitation package may also be posted in a compressed file format. Posting the entire bid or proposal solicitation package will reduce the posting time requirement as outlined in sec.199.108 of this title, relating to Posting Time Requirements. (4) An addendum to the original procurement opportunity can also be posted, in a compressed file format, at any time after posting the original notice. (d) The prescribed form will contain data fields for each of the required information items listed above. Contact information for the posting will automatically default to the information provided on the registered agent's registration form, but can be manually changed to reflect contact information on procurement opportunities for which the registered agent is not the contact. (e) The registered agent/user must select the "Add this listing" option to complete the posting process. All required information must be entered for the system to accept the posting. (f) Each state agency is responsible for posting notices of addendum, if applicable, to each procurement opportunity. The state agency is responsible for amendments and/or cancellation notices to postings on the business daily. (g) It is the responsibility of the potential bidder or offeror to contact the state agency prior to the bid or posting closing date to determine if an addendum has been issued. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 11, 1998. TRD-9809415 Gary Rosenquest Chief Administrative Officer Texas Department of Economic Development Effective date: July 1, 1998 Proposal publication date: March 20, 1998 For further information, please call: (512) 936-0181 TITLE 37. PUBLIC SAFETY AND CORRECTIONS PART V. Texas Board of Pardons and Paroles CHAPTER 141. General Provisions SUBCHAPTER A. Board of Pardons and Paroles 37 TAC sec.sec.141.1-141.4, 141.7 The Policy Board of the Texas Board of Pardons and Paroles adopts amendments to 37 TAC sec.sec.141.1-141.4, and new sec.141.7, concerning general provisions with changes to the proposed text as published in the March 13, 1998, issue of the Texas Register (23 TexReg 2749). The amendments and new section are proposed to reflect the changes made by House Bill 1386, Chapter 161, sec.5 and sec.6, Acts of the 75th Legislature, Regular Session, 1997 (effective September 1, 1997) with respect to the formation of the Policy Board of the Texas Board of Pardons and Paroles; composition of its membership; duties of the presiding officer; and duties of the members of the Policy Board. In addition, the proposed amendment to sec.141.3 sets out the role of the members of the Policy Board in coordinating Board activities and caseload assignment to Board members, as well as providing for administration of other matters as required by the presiding officer. One written comment was received from the Department of Criminal Justice. The commenter suggested several non-substantive wording changes, most of which were adopted by the Policy Board. In sec.141.1, the rule title was changed from "Chairmanship and membership of the Board" to "Presiding Officer (Chair) and Policy Board," to more correctly reflect the subject matter of the rule. In addition, in sec.141.2, the title of the rule, "Quorum" was changed to "Policy Board Quorum." In an effort to clarify the language of the rule, there were two changes made in the wording of the rule. First, referring to what is required before the Policy Board can transact business, the words "shall be only upon" were eliminated and the word "requires" was substituted; second, when the rule discusses that a majority of the quorum is necessary for the Policy Board to render a decision, the words "shall be upon" were struck and the word "require" was substituted. In addition, some capitalization errors were corrected. In sec.141.3, the title was changed from "Majority Vote" to "Policy Board Administration." In addition, the proposed words, "only upon a quorum and upon a majority of the quorum" were struck, as they were redundant. In sec.141.4 and sec.141.7, the word "chair" was inserted following the term "presiding officer." The amendments and new section are proposed under Code of Criminal Procedure, Article 42.18, sec.6A (a) and (b), which provide for the creation of the Policy Board; and sec.6A (c)(1), which provides the Policy Board with authority to adopt rules relating to the decision-making processes used by the Board and Board panels; sec.6C (d), which designates the six members of the Policy Board as the voting members of the Board for policy making purposes; sec.6A (c)(2)- (5), which charge the Policy Board with responsibility of defining caseloads for Board members as well as other administrative duties; sec.6 (a), which provides for the selection of the presiding officer by the governor; and Government Code, sec.508.045 (b), which provides that the presiding officer shall decide the composition of the Board panels. sec.141.1. Presiding Officer (Chair) and Policy Board. (a) The presiding officer (chair) is designated by the governor and serves in that capacity at the pleasure of the governor. The presiding officer (chair) acts as spokesperson for the board. (b) Six members of the board shall serve as the policy board of the Board of Pardons and Paroles. The governor designates the policy board. The term of a member of the policy board is six years, to be served concurrently with the member's term on the board. The presiding officer of the board shall serve as presiding officer of the policy board. sec.141.2. Policy Board Quorum. The transaction of business before the policy board requires a quorum of the policy board and decisions require a majority of the quorum. Four members of the policy board constitute a quorum. sec.141.3. Policy Board Administration. (a) The policy board shall determine matters that affect all board members. (b) Members of the policy board shall coordinate activities of the board, assure a maximum efficiency and fair distribution of the caseload, and administer other matters as required by the presiding officer. sec.141.4. Meetings. The policy board meets at the call of the presiding officer (chair). sec.141.7 Composition of Parole Panels. Parole panels shall determine member caseload. The presiding officer (chair) shall designate the composition of each panel. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 10, 1998. TRD-9809384 Laura McElroy General Counsel Texas Board of Pardons and Paroles Effective date: June 30, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 463-1883 CHAPTER 145. Parole SUBCHAPTER A. Parole Process 37 TAC sec.145.12 The Policy Board of the Texas Board of Pardons and Paroles adopts an amendment to 37 TAC sec.145.12, concerning action upon review, with one non-substantive change to the proposed text as published in the March 13, 1998, issue of the Texas Register (23 TexReg 2750). The amendment is proposed to establish additional voting options for use by parole panels when considering inmates for release on parole. The Policy Board's purpose in creating these new voting options is an effort to promulgate procedures in an effort to reduce recidivism by ensuring that the inmate completes the rehabilitation program before release to parole by establishing the earliest program start date and determining the minimum number of months the inmate is to participate in the program before release to parole. The one non-substantive change is to add the letter "R" following the FI-3, FI- 6, FI-9, and FI-18 designations for tracking purposes, to clearly denote those cases voted in the rehabilitation tier category in order to assist with the placement of those inmates into the programs. No comments were received regarding adoption of the amendment. The amendment is adopted under the Code of Criminal Procedure, Article 42.18, sec.8(g) and sec.508.044 (d) (1), Government Code, which provide the Policy Board with the authority to promulgate rules with respect to the release of inmates on parole and sec.sec.508.045 through 508.047 and sec.508.150, Government Code, which provide the Board with the authority to release inmates eligible for parole. sec.145.12. Action Upon Review. A case reviewed by a parole panel for parole consideration may be: (1)-(3) (No change.) (4) determined that the totality of the circumstances favor the inmate's release on parole, further investigation (FI) is ordered in the following manner; and, upon release to parole, all conditions of parole or release to mandatory supervision that the parole panel is required by law to impose as a condition of parole or release to mandatory supervision are imposed: (A) FI-1 - release when eligible; (B) FI-2 (Month/Year) - release on a specified future date within the three year incarceration period following either the prior parole docket date or date of the panel decision if the prior parole docket date has passed; (C) FI-3 R (Month/Year) - transfer to a TDCJ rehabilitation tier program of not less than three months in length and not earlier than the specified date. Release to parole upon program completion. Such TDCJ program may include the Pre-Release Substance Abuse Program (PRSAP). In no event shall the specified date be set more than three years from the current docket date or the date of the panel decision if the current docket date has passed; (D) FI-4 (Month/Year) - transfer to Pre-parole Transfer facility prior to presumptive parole date set by board panel and release to parole supervision on presumptive parole date, but in no event shall the specified date be set more than three years from either initial eligibility date, current docket date or date of panel decision, if the aforementioned dates have passed; (E) FI 5 - transfer to Inpatient Therapeutic Community Program. Release to aftercare component only after completion of IPTC program; (F) FI 6 R (Month/Year) - transfer to a TDCJ rehabilitation tier program of not less than six months in length and not earlier than the specified date. Release to parole upon program completion. Such TDCJ program may include the Pre-Release Therapeutic Community (PRTC). In no event shall the specified date be set more than three years from the current docket date or the date of the panel decision if the current docket date has passed; (G) FI-9 R (Month/Year) - Transfer to a TDCJ rehabilitation tier program of not less than nine months in length and not earlier than the specified date. Release to parole upon program completion. Such TDCJ program may include the In-Prison Therapeutic Community (IPTC). In no event shall the specified date be set more than three years from the current docket date or the date of the panel decision if the current docket date has passed; (H) FI-18 R (Month/Year) - transfer to a TDCJ rehabilitation tier program of not less than eighteen months in length and not earlier than the specified date. Release to parole upon program completion. Such TDCJ program may include the Sex Offender Treatment Program (SOTP). In no event shall the specified date be set more than three years from the current docket date or the date of the panel decision if the current docket date has passed; (5) if in special review or group review status, a case may be ordered to remain set or placed in further investigation (FI) status. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 10, 1998. TRD-9809382 Laura McElroy General Counsel Texas Board of Pardons and Paroles Effective date: June 30, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 463-1883 TITLE 40. SOCIAL SERVICES AND ASSISTANCE PART II. Texas Rehabilitation Commission CHAPTER 109.Development Disabilities Council 40 TAC sec.sec.109.1-109.6 The Texas Rehabilitation Commission adopts amendments to sec.sec.109.1-109.6, concerning developmental disabilities council, without changes to the proposed text as published in the May 15, 1998, issue of the Texas Register (23 TexReg 4888). In accordance with the Appropriations Act, sec.167, the Commission has reviewed these sections and has determined that they should be readopted. The sections are being amended so that the rules are consistent with revisions to the Developmental Disabilities Act 1984 and with the current Management Agreement between the Developmental Disabilities Council and the Texas Rehabilitation Commission. No comments were received regarding adoption of the amendments. The amendments are adopted under the Texas Human Resources Code, Title 7, Chapter 111, sec.111.018 and sec.111.023, House Bill Number 1, Article IX, sec.167, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 15, 1998. TRD-9809550 Charles Schiesser Chief of Staff Texas Rehabilitation Commission Effective date: July 5, 1998 Proposal publication date: May 15, 1998 For further information, please call: (512) 424-4050 TITLE 43. TRANSPORTATION PART II. Texas Turnpike Authority CHAPTER 52.Project Development SUBCHAPTER A.Environmental Review and Public Involvement 43 TAC sec.sec.52.1-52.8 The Board of Directors of the Texas Turnpike Authority Division of the Texas Department of Transportation adopts new sec.sec.52.1-52.8, concerning environmental review and public involvement without changes to the proposed text as published in the May 1, 1998, issue of the Texas Register (23 TexReg 4242) and will not be republished. EXPLANATION OF NEW SECTIONS Senate Bill 370, 75th Legislature, 1997, created the Texas Turnpike Authority Division of the Texas Department of Transportation, to be governed by a Board of Directors. The Texas Transportation Commission employs the director of the authority. The director reports to the commission and the board. Transportation Code, sec.361.103 requires the authority, by rule, to provide for the authority's environmental review of turnpike projects. Section 361.103 requires these rules to provide for: public comment on environmental reviews of turnpike projects, including the types of projects for which public hearings are required, and a procedure for requesting a public hearing on an environmental review for which a hearing is not required; the environmental factors and impacts the authority will evaluate in its environmental reviews; and environmental review of alternate routes for a proposed turnpike project. In order to comply with Transportation Code, sec.361.103, protect the environment, and provide for public involvement in turnpike projects, the board adopts new sec.sec.52.1-52.8, concerning environmental review and public involvement in authority projects. Section 52.1. Defines the purpose of new Subchapter A, which is to prescribe the environmental review procedures of the authority, and to specify that the procedures are designed to provide for the due consideration of environmental impacts related to toll facility project development, and to ensure adequate opportunity for public comments regarding the environmental reviews conducted for authority projects. Section 52.2. Defines words and terms used in the new subchapter. Section 52.3. Specifies those turnpike projects performed by the authority that require environmental reviews, consisting of new toll facility construction and those projects involving major improvements to existing toll facilities that do not meet the criteria for exclusion. Section 52.4. Prescribes the requirements for environmental studies and public involvement processes for projects utilizing federal aid highway funds or department funds, including compliance with all applicable federal and state requirements. Section 52.5. Defines the projects performed by the authority that are excluded from the environmental review requirements of this subchapter, and describes the criteria and procedures for a board determination of exclusion from the environmental review requirements, for any other authority projects that appear to meet the criteria for exclusion set out in this section. Section 52.6. Prescribes: early coordination and public involvement requirements for authority projects, including coordination with other governmental entities and the public during the project development process; when public meetings with property owners and the general public are required; when an opportunity for a public hearing will be afforded; when a public hearing will be conducted; how the public may request a public hearing; and how the public will be notified of any public meeting or hearing, or of any project planning or development issues. Section 52.7. Describes the process for assessing environmental impacts caused by authority projects, including requiring an environmental assessment when the extent of environmental impacts from a project is not readily discernible as to either magnitude or significance. Specifies coordination and consultation requirements pursuant to sec.52.6; when a finding of no significant impact (FONSI) may be made; public notification of a FONSI; and when an environmental impact statement (EIS) is required. Section 52.8. Prescribes when an environmental impact statement (EIS) is required for authority projects; requires the preparation of a notice of intent to prepare an EIS; describes the requirements of the notice of intent; and specifies the provisions required to be in a draft EIS and final EIS. This section also describes procedures for external review of notices of intent, draft EIS, and final EIS; publication of notice of the availability of a draft EIS or final EIS, and of the opportunity to provide public comment on an EIS; prescribes a public hearing prior to preparation of the final EIS; requires the preparation of a record of decision; and specifies when a supplemental EIS is required and the contents of a supplemental EIS. This section finally describes when requests for deviation from these procedures may be made, and the required provisions in the final environmental documentation. RESPONSE TO COMMENTS No oral or written comments were received on the proposed new sections. STATUTORY AUTHORITY The new sections are adopted 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, and more specifically, Transportation Code, sec.361.103, which requires the authority to provide, by rule, for the authority's environmental review of turnpike projects. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on June 11, 1998. TRD-9809407 C. Brian Cassidy General Counsel Texas Turnpike Authority Division Effective date: July 1, 1998 Proposal publication date: May 1, 1998 For further information, please call: (512) 936-0903