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 1. ADMINISTRATION
PART XV. Texas Health and Human Services Commission
CHAPTER 351.Coordinated Planning and Delivery of Health and
Human Services
1 TAC sec.351.13
The Health and Human Services Commission adopts new sec.351.13 concerning 
substitute care provider outcome standards with changes to the proposed text as 
published in the April 24, 1998, issue of the Texas Register (23 TexReg 3973).
Senate Bill 359, 75th Legislature, 1997, amended the Texas Government Code, 
Chapter, 531.047, to require the commission to establish rules requiring a 
provider of substitute care to implement result-oriented standards which the 
provider must achieve. Section 531.047 also requires a health and human services 
agency that purchases substitute care services to incorporate the result-
oriented standards into each substitute care service provider contract. The 
inclusion of these measurable outcome standards in contracts will enhance 
accountability by clarifying expectations. As a result, the affected agencies 
should have quantifiable information that they may use or share with other 
agencies regarding the substitute care provider, including rates, contracts, 
outcomes, and client information. As these rules set up uniform standards for 
most substitute care providers across health and human services agencies, it is 
anticipated that all clients will have outcome standards that can be easily 
shared among agencies, if required. These rules, as changed pursuant to comments 
received, should have the effect of identifying substitute care providers who 
are improving their clients' well-being, which will be considered when placing a 
child in substitute care. This should have the result of improving quality of 
care to clients in substitute care. 
The following comments were received on the new rule as proposed. Following each 
comment is the commission's response and any resulting change(s) to the rule. 
Comment: One commenter suggested that the child's behavior, appropriate or not, 
must be accepted as part of the child's means for communication. The child's 
behavior should not be considered as an element of the safety and security 
domain. The commenter further requested that the safety and security domain 
definition include language that reflects the provider's role in the care of the 
child. 
Response: The commission agrees that the child's behavior is appropriately 
viewed as communication rather than as an element of the safety and security 
domain. The purpose of creating the domains was to provide a measure by which to 
assess the quality of care received by a child placed in a substitute 
residential care facility. To ensure the rules agree with this approach, the 
commission deleted the last sentence in subsection (a)(2). The commission does 
not agree that reference to the provider is necessary in this domain. The role 
of the provider of substitute care is integral in all of the domains as it 
relates to the quality of care the child receives; therefore, the commission 
believes that express reference to the provider's duties within a specific 
domain would have the unintended effect of limiting the role of the provider 
within all the domains. 
Comment: One commenter requested modifications to the rule text by adding to the 
educational domain context in subsection (a)(4), the terms "progress" and "in 
the least restrictive" academic or vocational setting. The commenter also wanted 
to know how the substitute care provider would be held accountable for achieving 
educational progress stated in the proposed rule. 
Response: The commission agrees that the proposed additional language provides 
an additional marker for evaluation and confirms the desirability of eliminating 
unnecessary restrictions in the educational context. In response to this 
comment, the commission added the term "progress" and the language "in the most 
appropriate and least restrictive" academic or vocational setting. The 
commission further responds to the commenter that the substitute care provider 
will be held accountable by the contracting entity for the domains developed 
within the individualized treatment plan or service plan. 
Comment: One commenter requested that the permanence domain definition should be 
modified by deleting the phrase "whenever possible." The commenter stated that 
it is often the children with disabilities who fall off the path toward a family 
setting when policies are developed to allow placement in a family setting 
"whenever possible." 
Response: The commission agrees with the comment and has deleted "whenever 
possible" from subsection (a)(8). 
Comment: One commenter suggested that the following statement be added to the 
individualized treatment plan or service plan language at subsection (c): "For a 
child who receives special education services, the provider shall also 
participate with the school in the development and, when appropriate, 
implementation of the Individual Education Plan (IEP)." 
Response: While acknowledging the commenter's concerns, the commission declines 
to add the proposed language, as it would by implication require the school to 
accept participation by the provider in the IEP. This result is outside the 
scope of this rule and of its enabling statute. 
Comment: One commenter suggested deletion of the language "other than an agency 
group home, agency home, or a foster home verified or certified by the Texas 
Department of Protective and Regulatory Services" in subsection (b)(2)(D). The 
commenter expressed the concern that the language results in the exclusion of 
thousands of children from the quality of care assurances intended by these 
rules. 
Response: Chapter 531.047, Government Code, defines which persons and entities 
are and are not a substitute residential care facility. As the statute 
explicitly excludes agency group homes, agency homes, and foster homes verified 
or certified by the Texas Department of Protective and Regulatory Services, the 
commission will not make the requested change. 
Comment: One commenter suggested that the new definition of development of goals 
in subsection (d) inappropriately gives to the contracting entity the primary 
responsibility for developing goals in a child's individual treatment plan or 
service plan. The commenter feels the provider of care knows the child and 
his/her needs better than does the contracting entity. As a result, the 
commenter believes the provider is better equipped to develop a treatment plan 
to fulfill the child's needs. The commenter also suggested that an increased 
cost factor would be introduced by the higher frequency and intensity of 
involvement with a child by contracting entity, involvement which the commenter 
felt would be required in the event goals are defined by the contracting entity. 
Response: The commission responds that the law requires the contracting entity 
to assist in the development of the treatment or service plan for each child; 
therefore, the commission will not make the suggested change to subsection (d). 
Comment: One commenter stated that the current review periods set forth in 
subsection (e)(1) for different levels of care are not necessarily appropriate. 
The type of child served by a particular agency makes a significant difference 
in outcomes that can be realistically expected. It would follow then that if an 
agency wanted to avoid being penalized for lack of progress of children in its 
care, the agency would do best by not taking on the more difficult children who 
are less likely to make progress in a limited period of time regardless of 
provider efforts. 
Response: The commission notes the commenter's concerns but cannot modify the 
review periods established in subsection (e)(1), as they are prescribed by law.
Comment: One commenter suggested "substitute care provider" should be more 
clearly defined in accordance with chapter 531.047, Government Code, which does 
not intend it to include mental health and mental retardation facilities covered 
by Medicaid. The commenter proposed the inclusion of the following language 
within the definition: "This rule is not applicable to contracts for persons 
residing in state-operated facilities as listed in Section 532.001 Texas Health 
& Safety Code, or persons residing in HSC or ICF/MR facilities under contract 
with TDHMHMR under the state's Medicaid program." 
Response: The commission agrees and has made the suggested change. 
Comment: One commenter suggested adding juvenile boards that contract with the 
Texas Juvenile Probation Commission, as the boards in some instances be the 
appropriate entities responsible for implementing, coordinating, and monitoring 
outcome standards for substitute care services for children placed in a licensed 
foster families, foster group homes, or 24-hour residential care facilities.
Response: The commission agrees and has made the suggested change. 
Comment: One commenter suggested that using "satisfaction" in the parent and 
child satisfaction domain may present problems of scoring for persons setting 
the goals. Would the goal be to have a specific percentage of parents satisfied? 
The commenter suggested that parent and child participation would be a better 
characterization of this domain. Satisfaction could be a result of 
participation. 
Response: The commission agrees and has made the suggested change. 
Comment: One commenter suggested that an upper score of +3 be added to 
subsection (e)(1). The +3 score would be entitled "goal achieved and 
maintained." The commenter believes that adding this upper score would help 
prevent providers from always choosing +2. The commenter further suggested that 
there would be a change in zero (0), which would be changed to read "no decline 
or improvement in behavior identified in the goal." 
Response: The commission agrees and has made the requested changes. 
Comment: One commenter suggested that the following language be added, "This 
rule is not applicable to contracts for persons residing in state-operated 
facilities as listed in sec.532.001, Health and Safety Code, or persons residing 
in HCS or ICF/MR facilities under contract with the Texas Department of Mental 
Health and Mental Retardation under the state's Medicaid program" to clarify 
that these facilities are not included in the rule. 
Response: The commission agrees and has made the suggested change. 
Comment: One commenter suggested that the language regarding contracting 
entities be changed to add local mental health and/or mental retardation 
authorities under the auspices of the Texas Department of Mental Health and 
Mental Retardation.
Response: The commission agrees and has made the suggested change. 
The commission also made some technical changes to correct word omissions and 
capitalization in the rule. 
During the comment period, the commission received written comments from 
Habilitative Homes, Inc., the Texas Juvenile Probation Commission, the Texas 
Department of Protective and Regulatory Services, and the Texas Department of 
Mental Health and Mental Retardation. In addition, oral and written testimony 
was offered by Advocacy, Incorporated at a public hearing held June 1, 1998. 
While all commenters offered recommendations regarding modification(s) to the 
language of the rule, no commenter was specifically against the proposal.
The new rule is adopted under the Texas Government Code, chapter 531, 
sec.531.033, which authorizes the Commissioner of Health and Human Services to 
adopt rules necessary to carry out the Health and Human Services Commission's 
duties under chapter 531. 
The new rule affects chapter 531 of the Texas Government Code. 

sec.351.13.Substitute Care Provider Outcome Standards.
(a) Definitions of Domains. The following words or terms, when used in this 
section, shall have the following meanings unless the context clearly indicates 
otherwise. 
(1) Medical domain: The medical domain is related to a child's physical health. 
It includes, but is not limited to, medication management, medication 
monitoring, and management of acute and chronic medical conditions.
(2) Safety and security domain: The safety and security domain is characterized 
by the absence of harm to self and others and safety to self, others, and 
community. This domain includes, but is not limited to, self-harm, aggression, 
and destructive acts. 
(3) Recreational domain: The recreational domain involves the child's ability to 
choose and participate in age-appropriate play and activities. This domain 
includes, but is not limited to, hobbies and sports.
(4) Educational domain: The educational domain is related to a child's 
performance, progress, and conduct in the most appropriate and least restrictive 
academic or vocational setting. 
(5) Mental/behavioral health domain: The mental/behavioral health domain refers 
to the behavioral and emotional functioning of the child, as well as any 
psychiatric symptomatology that may be present. 
(6) Relationship domain: The relationship domain is characterized by, but is not 
limited to, a child's ability to trust, to form positive relationships, to 
function well as part of family unit, as well as by the development and 
maintenance of age-appropriate social relationships.
(7) Socialization domain: The socialization domain is characterized by, but is 
not limited to, age-appropriate social behavior, problem-solving, and social 
skills in various social settings. 
(8) Permanence domain: The permanence domain is characterized by a child moving 
out of a substitute care system and remaining in the least restrictive 
environment in the community. 
(9) Parent and child participation domain: The parent and child participation 
domain involves, but is not limited to, both the parent's and child's general 
satisfaction with services, their relationship with service providers, their 
participation in the treatment or service plan, and improvement in the 
relationship between the child and the parents. 
(b) Other Definitions. 
(1) Contracting entity-a health and human services agency (the Texas Juvenile 
Probation Commission and juvenile boards that contract with the Texas Juvenile 
Probation Commission, Texas Department of Mental Health and Mental Retardation 
and local mental health and/or mental retardation authorities, and/or Texas 
Department of Protective and Regulatory Services) that is responsible for 
implementing, coordinating, and monitoring outcome standards for substitute care 
services for children placed in a licensed foster families, foster group homes, 
or 24-hour residential care facilities. This rule is not applicable to contracts 
for persons residing in state-operated facilities as listed in sec.532.001, 
Health and Safety Code, or persons residing in HCS or ICF/MR facilities under 
contract with the Texas Department of Mental Health and Mental Retardation under 
the state's Medicaid program. 
(2) Substitute care provider-a person who provides residential care for children 
for 24 hours a day, including: 
(A) a child-care institution, as defined by sec.42.002, Human Resources Code; 
(B) a child-placing agency, as defined by sec.42.002, Human Resources Code; 
(C) a foster group home or foster family home, as defined by sec.42.002, Human 
Resources Code; and 
(D) an agency group home or agency home, as defined by sec.42.002, Human 
Resources Code, other than an agency group home, agency home, or a foster home 
verified or certified by the Texas Department of Protective and Regulatory 
Services. 
(3) Individualized Treatment Plan-this term has the same meaning as that set out 
in 25 TAC sec.402.53 (Relating to Definitions in Continuity of Services-Mental 
Health). 
(4) Service Plan-this term has the same meaning as that set out in 40 TAC 
sec.700.1331 (Relating to Child's Service Plan). 
(c) Individualized Treatment Plan or Service Plan. A substitute care provider 
who receives funds from the state to provide substitute care services to 
children under the care of the State shall maintain an individualized treatment 
plan or service plan on each individual child. The plan shall contain specific 
behavioral goals that are appropriate to the child and the types of services to 
be provided under the appropriate levels of care. The provider should use the 
nine domains in subsection (a) of this section in setting the behavioral goals. 
A child is not required to have a goal in each domain; however, a child may have 
one or more different goals within the same domain. 
(d) Development of Goals. The responsibility of developing goals in a child's 
individual treatment plan or service plan resides with contracting entity in 
conjunction with the substitute care provider. The child and family should be 
involved in the development of treatment goals whenever possible. Once a child 
has met goal(s) identified in the treatment or service plan, new goals should be 
developed for the child. 
(e) Measurement of Progress toward Goals. 
(1) The staff, representative, or third party independent agent of the 
contracting entity shall monitor the progress of the child in achieving the 
goals. The frequency of monitoring shall be based upon the current review period 
appropriate for that specific child's level of care. A six-point scale measures 
the child's progress towards the achievement of each goal. The staff, 
representative, or third party independent agent also rates the child. Progress 
is rated at given intervals on the following six-point scale:
(A) +3 Goal achieved and maintained; 
(B) +2 Substantial improvement in behavior identified in the goal; 
(C) +1 Some improvement in behavior identified in the goal;
(D) 0 No decline or improvement in behavior identified in the goal; 
(E) -1 Some worsening in behavior identified in the goal; and 
(F) -2 Substantial worsening in behavior identified in the goal. 
(2) The child's progress will be assessed on each identified goal within the 
nine domains listed in subsection (a) of this section. If the child has shown 
improvement in 50% or more of the identified goal(s) as measured by a positive 
rating (+1, +2, or +3) during the monitoring period, the child will be 
considered to be progressing towards the goal(s). 
(3) The outcome of a substitute care provider's service delivery shall be 
measured by the percentage of children under its care that are considered to 
have made progress towards their goals, as defined in paragraph (2) of this 
subsection. 
(4) When a contracting entity has an option in placing a child in substitute 
care, the entity shall consider whether the children in a particular substitute 
care provider's care are progressing as defined in paragraph (2) of this 
subsection. 
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 August 3, 1998.
TRD-9812198
Marina S. Henderson
Executive Deputy Commissioner
Texas Health and Human Services Commission
Effective date: August 23, 1998
Proposal publication date: April 24, 1998
For further information, please call: (512) 424-6576

CHAPTER 355.Medicaid Reimbursement Rates
SUBCHAPTER G.Telemedicine Services
1 TAC sec.355.7001
The Health and Human Services Commission adopts new sec.355.7001 in chapter 355, 
Medicaid Reimbursement Rates, new subchapter G, Telemedicine Services, 
concerning the reimbursement for telemedicine services in the Medicaid program 
with changes to the proposed text as published in the February 6, 1998, issue of 
the Texas Register (23 TexReg 887). 
House Bill 2386 and House Bill 2017, 75th Legislature, Regular Session, direct 
the Health and Human Services Commission to establish a system for reimbursing 
providers of services performed using telemedicine. The adopted rule sets forth 
definitions related to telemedicine and establishes reimbursement for the remote 
site provider for and for the hub site provider in accordance with existing 
Medicaid reimbursement methodology. The adopted rule also limits the types of 
services for which the providers can be reimbursed to those currently 
reimbursable under Medicaid policy. The adopted rule stipulates that providers 
seeking reimbursement for telemedicine services must adhere to reimbursement and 
medical policies adopted by the Department of Health for telemedicine services. 
This new rule will allow providers to be reimbursed for consultations, 
interpretations, and interactive video visits and encounters in accordance with 
Medicaid medical policy. The rule mirrors existing reimbursement methodology but 
provides a mechanism for Medicaid recipients in rural and underserved counties 
to be seen by a physician at a hub site without being required to travel to that 
location. It is anticipated that Medicaid recipients will benefit from the use 
of telemedicine. The use of telemedicine may result in earlier intervention, as 
clients will have access to services more quickly and conveniently. As 
telemedicine networks are only beginning to be developed throughout the state, 
the anticipated use of telemedicine is unknown. Consequently, the new rule is 
fairly conservative in its approach; however, it does expand the methods of 
service delivery to include telemedicine. 
The following comments were received on the new rule as proposed. Following each 
comment is the commission's response and any resulting change(s) to the rule. 
Comment: It was commented that references to "advanced nurse practitioner" be 
changed to reflect the Texas Board of Nurse Examiners 1996 terminology change to 
"advanced practice nurse." 
Response: The commission agrees with this technical change. 
Comment: One commenter suggested that the rule should specifically include 
osteopathic schools as well as medical schools. 
Response: The commission agrees. The rule will be changed to specifically 
include osteopathic schools. 
Comment: Several commenters requested that the definition of telemedicine be 
changed to include other types of telecommunication in addition to interactive 
video, teleradiology, and telepathology; for example, store and forward 
technologies. Some commenters were concerned that not all rural providers would 
be able to use telemedicine because they might not have the technology required 
for interactive video. 
Response: The commission developed telemedicine rules so that the use of 
telemedicine would reflect, as closely as possible, existing rules and medical 
policies in the Medicaid program. Currently, the Medicaid program reimburses for 
several types of consultations and interpretations that are not necessarily 
conducted in person. Providers will continue to be able to bill for these 
services regardless of the method of service delivery; e.g., store and forward 
technology, interactive video, etc. The commission has made changes to the rule 
to clarify that providers can bill only for services that are currently 
reimbursable regardless of the method of service delivery used. 
Comment: Two commenters asked whether accredited medical schools were limited to 
those in Texas. 
Response: The rule has been clarified to specify that accredited medical schools 
must be in Texas. 
Comment: Several commenters asked whether remote site providers were limited to 
physicians or advanced practice nurses, or whether registered nurses and 
physician assistants could be reimbursed for telemedicine services. Some of the 
commenters urged that registered nurses and physician assistants should be 
allowed to use telemedicine in rural areas to improve access. 
Response: The commission developed telemedicine rules so that the use of 
telemedicine would reflect, as closely as possible, existing rules and medical 
policies in the Medicaid program. Those providers currently able to 
independently bill the Medicaid program for consultation, evaluation and 
management, and interpretation services will be able to do so under 
telemedicine. Those provider types are: medical doctors and doctors of 
osteopathy, advanced practice nurses, dentists, optometrists, psychologists, 
podiatrists, and certified nurse midwives. Furthermore, allowing physician 
assistants and registered nurses to bill Medicaid independently concerns scope 
of practice issues which the rule was not developed to address. Medicaid allows 
certain non-physician providers in Federally Qualified Health Centers (FQHCs) 
and Rural Health Clinics (RHCs) to provide services reimbursable to the FQHC or 
RHC. Medical policy will specify which non-physician providers can be reimbursed 
for telemedicine services provided at FQHCs and RHCs. 
Comment: Several comments concerned "consultation services" and "evaluation and 
management services." One commenter suggested that hub site providers be allowed 
to bill for evaluation and management if the remote site provider could not 
independently bill for evaluation and management services. Commenters asked 
whether reimbursable telemedicine services would be limited to consultation and 
evaluation and management. 
Response: Medicaid policy will outline what the appropriate billing codes and 
requirements are. The rule has been changed to reflect that hub site providers 
can bill for consultation, evaluation and management, and interpretive services 
provided using telemedicine. These services will be reimbursed to the extent 
that they are currently reimbursed under Medicaid policy. Remote site providers 
will be reimbursed for an office visit or encounter using interactive video.
Comment: A commenter asked how telemedicine claims would be identified. 
Response: Telemedicine claims will have a modifier to indicate that claims are 
for consultation, interpretation, or an interactive video visit or encounter 
using telemedicine. Medical policy published by National Heritage Insurance 
Company, the Texas Department of Health's agent, will outline billing 
procedures, as that is not within the scope of this rule. 
Comment: One commenter suggested that remote site providers should be able to 
bill for consultation services like hub site providers so that one remote site 
provider could serve as a consultant to another remote site provider. 
Response: Legislation limits the provision of telemedicine consultations to 
physicians licensed to practice in rural health facilities, accredited medical 
schools, or teaching hospitals affiliated with accredited medical schools. At 
this time, the commission has decided to define hub site providers as those 
providers at or affiliated with an accredited medical or osteopathic school in 
Texas. This approach builds on existing expertise that these providers have in 
telemedicine. However, the commission will continue to monitor and study this 
issue and may make rule changes in the future if the commission determines that 
a change in necessary. 
Comment: Several commenters stated that the limitation of hub site providers to 
those affiliated with a teaching hospital is too restrictive. Commenters also 
suggested that the term "affiliation" be defined. One commenter suggested that 
the state should consider defining affiliated entities as those which have a 
formal affiliation agreement that provides for some type of rotation for 
advanced practice nurses or physician assistants, clinical clerkships, graduate 
medical education programs, or preceptorships for medical residents and 
students. Another commenter suggested that a hub site provider be defined as 
anyone who has access to telemedicine technology. Another commenter suggested 
that the definition of a hub site provider be expanded to include a provider in 
a rural community who is responsible for the care of persons in a region 
serviced only by a single provider. 
Response: Legislation limits the provision of telemedicine consultations to 
physicians licensed to practice in rural health facilities, accredited medical 
schools, or teaching hospitals affiliated with accredited medical schools. At 
this time, the commission has decided to define hub site providers as those 
providers at or affiliated with an accredited medical or osteopathic school in 
Texas. This approach builds on existing expertise that these providers have in 
telemedicine. However, the commission will continue to monitor and study this 
issue and may make rule changes in the future if the commission determines that 
a change in necessary. To clarify what would qualify as an "affiliation," the 
rule will be changed to define hub site providers as physicians at an accredited 
medical or osteopathic school or physicians at entities affiliated "through a 
written contract or agreement with" an accredited medical or osteopathic school. 
Medical schools that wish to require certain clinical clerkships or rotations 
may do so in their written contracts or agreements. 
Comment: One commenter suggested that savings from telemedicine should be 
returned to providers as an incentive for the use of telemedicine and to pay for 
telemedicine technology. 
Response: The commission disagrees. The Medicaid program does not provide 
financial incentives beyond reimbursement for services to providers. The 
Medicaid program does not pay for methods of service delivery. 
Comment: One commenter suggested that the definition of rural be expanded to 
include not only size of a county but also distance from health care facilities.
Response: At this time, the commission has decided not to include distance as 
part of the definition of which counties may bill for telemedicine. However, the 
commission will continue to monitor and study this issue and may make rule 
changes in the future if the commission determines that a change is necessary. 
Comment: One commenter asked whether geneticists providing genetic consultations 
are allowed to bill for telemedicine consultations. 
Response: The commission developed telemedicine rules so that the use of 
telemedicine would reflect, as closely as possible, existing rules and medical 
policies in the Medicaid program. To the extent that geneticists can currently 
bill for consultations or interpretations under medical policy, they will 
continue to be able to bill for them using telemedicine. 
Comment: Two commenters asked whether remote site providers can bill for 
evaluation and management visits related solely to interactive video 
consultations that would not have been otherwise medically necessary. 
Response: Medical policy requires that all consultations be medically necessary 
before the State will pay for them. The patient must be present during an 
interactive video consultation. As both of these circumstances must occur before 
an interactive video consultation performed by telemedicine is reimbursable, the 
commission does not believe that the situation outlined by these commenters 
would occur. 
Comment: Two commenters asked what is required to file a claim for telemedicine 
services, will the same requirements apply to remote and hub site providers, and 
whether the Texas Department of Health will be publishing rules addressing these 
issues. 
Response: These issues are more appropriately addressed outside of rules. 
Medical policy published by the National Heritage Insurance Company, the Texas 
Department of Health's agent, and Medicaid bulletins to providers will specify 
what is needed to file a claim for telemedicine services. 
Comment: A commenter suggested that the commission add language to the rule that 
all providers comply with applicable standards for record-keeping, quality, and 
utilization review and management. 
Response: The commission believes that these standards are adequately addressed 
elsewhere in state and federal law and regulation and need not be included here. 
No change was made as a result of this comment. 
Comment: A commenter suggested adding a sentence in subsection (a)(4) and (a)(5) 
that the services mentioned in the preceding sentence are consultation services 
when provided using telemedicine. 
Response: The commission has changed subsection (b) of the rule to allow more 
than just interactive video consultations, teleradiology, and telepathology. The 
commission has added the phrase "Using telemedicine" to the beginning of new 
subsection (b)(1) and (b)(2) in response to this comment. 
Comment: A commenter noted that the rule should add the qualifier "for an office 
visit" relating to remote site providers to clarify the commission's position 
regarding those providers who are able to bill the Medicaid program 
independently. 
Response: The commission agrees and has changed the rule to incorporate this 
clarification. 
Comment: A commenter suggested that the commission provide a definition of 
consultation and evaluation and management services. 
Response: These terms are defined in medical policy published by National 
Heritage Insurance Company, the Texas Department of Health's agent, that is 
given to all providers. Additionally, the commission has changed the rule to 
permit the use of telemedicine to deliver services that are currently 
reimbursable under the Texas Medicaid Program. 
Comment: Several commenters asked if a physician providing telemedicine services 
must be licensed to practice in Texas. 
Response: The commission believes that this comment addresses a licensing issue 
that is more appropriately addressed by the State Board of Medical Examiners. If 
the State Board of Medical Examiners licenses providers outside the State to 
provide telemedicine services, the commission will reimburse those physicians 
for telemedicine services provided to Texas Medicaid recipients. If the State 
Board of Medical Examiners does not license providers outside the State to 
provide telemedicine services, the State will not reimburse them for 
telemedicine services. 
Comment: A commenter suggested the deletion of "rural" and "underserved" from 
the definition of telemedicine, as the commenter believes that it is addressed 
in the remainder of the rule. 
Response: The commission disagrees, as it believes these terms are necessary in 
the definition of telemedicine to track sec. 531.047 of the Government Code. No 
change was made as result of this comment. 
Comment: One commenter stated that telemedicine is too restricted in applying 
only to rural areas. The commenter suggested that counties that have 
insufficient specialists should also benefit from the use of telemedicine. 
Response: The proposed rule also includes underserved counties. If the counties 
meet the definition of underserved, they also will be able to use telemedicine. 
No change was made as a result of this comment. 
Comments were received from the Texas Department of Health, the University of 
Texas System, the Coalition for Nurses in Advanced Practice, State 
Representative Patricia Gray, the Texas HMO Association, the Texas Osteopathic 
Medical Association, Texas Tech University Health Sciences Center, Healthcare 
Vision, Inc., Texas Health Care Association, the Greater San Antonio Hospital 
Council, Texas Legal Services Center, PhysiTel, and The University of Texas MD 
Anderson Cancer Center. Comments were also received at a public hearing held on 
February 19, 1998, at which Texas Tech University Health Science Center, Scott & 
White Hospital, and the Texas HMO Association offered public testimony. None of 
the commenters were against the rule in its entirety, however they expressed 
concerns, asked questions, and suggested recommendations for change as discussed 
in the summary of comments. 
The new rule is adopted under the Texas Government Code, chapter 531, 
sec.531.033, which authorizes the Commissioner of Health and Human Services to 
adopt rules necessary to carry out the Health and Human Services Commission's 
duties under chapter 531. 
The new rule affects chapter 531 of the Texas Government Code and chapter 32 of 
the Texas Human Resources Code. 

sec.355.7001.Telemedicine Services.
(a) Definitions. The following words and terms, when used in this chapter, will 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Telemedicine - a method of health care service delivery used to facilitate 
medical consultations by physicians to health care providers in rural or 
underserved areas for purposes of patient diagnosis or treatment that requires 
advanced telecommunications technologies, including interactive video 
consultation, teleradiology, and telepathology. 
(2) Rural - area defined as a county with a population of less than 50,000. 
(3) Underserved - area that meets the definition of Medically Underserved Area 
(MUA) or Medically Underserved Population (MUP) by the U.S. Department of Health 
and Human Services. 
(4) Hub Site Provider - a physician at an accredited medical or osteopathic 
school located in Texas, or a physician at one of the following entities 
affiliated through a written contract or agreement with an accredited medical or 
osteopathic school located in Texas: hospitals, teaching hospitals, tertiary 
centers, or health clinics. The hub site physician will provide consultation and 
diagnosis, and may develop the patient's plan of care and treatment. 
(5) Remote Site Provider - a health professional, such as a physician or 
advanced practice nurse, that is able to independently bill the Medicaid Program 
for an office visit, or a Federally Qualified Health Center or Rural Health 
Clinic. Remote site providers must be located in rural or underserved areas. The 
remote site provider is responsible for carrying out or coordinating the plan of 
care and treatment after consulting with the hub site provider. 
(b) Reimbursement for Services Performed Using Telemedicine 
(1) Using telemedicine, hub site providers can bill only for the following 
services: 
(A) consultation using interactive video; 
(B) consultation or interpretation using telemedicine as defined by Medicaid 
telemedicine medical policy and as currently reimbursed under the Medicaid 
program; and 
(C) teleradiology and telepathology as they are currently reimbursed under the 
Medicaid Program pursuant to medical policy 
(2) Using telemedicine, remote site providers can bill only for an office visit 
or encounter using interactive video as described in Medicaid telemedicine 
medical policy. 
(3) Telemedicine services are reimbursed in accordance with the existing 
Medicaid reimbursement methodology. 
(4) Providers seeking reimbursement for telemedicine services must provide and 
bill for the service in the manner prescribed by the Texas Department of Health. 
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 August 3, 1998.
TRD-9812199
Marina S. Henderson
Executive Deputy Commissioner
Texas Health and Human Services Commission
Effective date: August 23, 1998
Proposal publication date: February 6, 1998
For further information, please call: (512) 424-6576

TITLE 16. ECONOMIC REGULATION
PART VI. Texas Motor Vehicle Board
CHAPTER 107.Warranty Performance Obligations
16 TAC sec.107.8
The Texas Motor Vehicle Board adopts amendments to sec.107.8, concerning 
guidelines for final decisions made under the Lemon Law, without changes as 
published in the May 22, 1998 issue of the Texas Register (23 TexReg 5308). 
The amendments reinstate paragraphs which were inadvertently deleted when 
sec.107.8 was amended in January, 1998 to formulate a reasonable allowance for 
use for towable recreational vehicles. The amendments will maintain continuity 
of the Board's policies concerning lemon law hearings and provide guidelines 
concerning irregularities in the disposition of lemon law cases. Paragraph 
sec.107.8(7) authorizes the Director, Motor Vehicle Division, to require the 
dealer to reimburse the complainant, manufacturer, distributor, or converter for 
the cost of any items or options added to the vehicle but only to the extent 
that they contributed to the defect forming the basis of the repurchase or 
replacement. Paragraph sec.107.8(8) authorizes the entry of an order requiring 
repair of a vehicle to obtain compliance with the manufacturer's warranty 
obligations under sec.3.08(i) or sec.6.07(b) if it does not qualify for 
repurchase or replacement under sec.6.07(c). Paragraph sec.107.8(9) makes 
provision for reconsideration of the ordered repurchase price if a vehicle is 
substantially damaged or has an adverse change in condition beyond ordinary wear 
and tear. Paragraph sec.107.8(10) requires the Board to enter a written order 
and provide a copy to the parties in each case where a hearing is held. 
No comments were received regarding adoption of the amendments. 
The amendments are adopted under the Texas Motor Vehicle Commission Code (Texas 
Civil Statutes, Article 4413(36) and (36a)), sec.3.06, which provides the Board 
with authority to adopt rules necessary and convenient to effectuate the 
provisions of the act and to govern practice and procedure before the agency. 
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 July 28, 1998.
TRD-9811916
Brett Bray
Director, Motor Vehicle Division
Texas Motor Vehicle Board
Effective date: August 17, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 416-4899

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 adopts new sec.5.11, concerning 
General Provisions (Common Admission Application) with changes to the proposed 
text as published in the June 5, 1998, issue of the Texas Register (23 TexReg 
5889). 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. 
A comment was received from Kilgore College requesting that the term "general 
academic teaching institution" be used in all sections of the rule. The agency 
agreed with this comment. Consequently, in subsection (d) of this section, 
"institution of higher education" has been changed to "general academic teaching 
institution." 
The new rule is adopted 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). 

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, sec.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, 
sec.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. A general academic teaching institution 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 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 August 3, 1998.
TRD-9812289
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts the repeal of 
sec.sec.5.171-5.175, 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 without 
changes to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5890).
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. 
There were no comments received regarding the repealed rules.
The repeal of the rules is adopted 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. 
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 August 3, 1998.
TRD-9812245
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts the repeal of 
sec.sec.5.261-5.267, concerning Approval and Operation of Community/Junior 
College Branch Campuses without changes to the proposed text as published in the 
June 5, 1998 issue of the Texas Register (23 TexReg 5890). 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. 
There were no comments received regarding the repealed rule. 
The repeal of the rules is adopted 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. 
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 August 3, 1998.
TRD-9812246
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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 adopts new sec.sec.8.71-8.76 
concerning Creation, Expansion, Dissolution, or Conservatorship of Public 
Community/Junior College Districts (Formation of a Branch Campus) without 
changes to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5894). 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 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. 
There were no comments received regarding the proposed new rules. 
The new rules are adopted under 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, 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). 
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 August 3, 1998.
TRD-9812278
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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 adopts new sec.9.1, concerning 
Program Development in Public Community/Junior College Districts and Technical 
Colleges (Definitions) with changes to the proposed text as published in the 
June 5, 1998, issue of the Texas Register (23 TexReg 5896). The new proposed 
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.
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments and changes were incorporated into 
the proposed rules. 
The new rule is adopted under 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), 13.003, 130.005, 130.0051, 130.008, 
and 130.009, 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).

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 -- Workforce programs 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. 
(5) Commissioner of higher education or commissioner -- The chief executive 
officer of the Texas Higher Education Coordinating Board. 
(6) Concurrent course credit -- The award of credit to a student upon successful 
course completion for both high school credit (graduate requirements) and 
college credit (associate degree requirements.) 
(7) 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.
(8) 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. 
(9) 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. 
(10) Developmental courses -- Courses designed to correct academic deficiencies 
and bring students' skills to an appropriate level for entry into college. 
(11) 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. 
(12) 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. 
(13) 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. 
(14) 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. 
(15) Related-instruction -- Relates to Section 9.27, organized off-the-job 
classroom instruction in theoretical or technical subjects required for the 
completion of an apprenticeship program. 
(16) 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. 
(17) Remedial courses Courses for high school students designed to correct 
academic deficiencies and bring students' skills to an appropriate level for 
graduation from high school. 
(18) SACS/COC -- The Southern Association of Colleges and Schools Commission on 
Colleges. 
(19) Technical courses or programs -- Workforce education courses or programs 
for which semester/quarter credit hours are awarded. 
(20) Unique need academic course -- An academic course created by a college to 
satisfy a unique need and designed to transfer into a baccalaureate program. 
(21) Vocational courses or programs -- Workforce education courses or programs 
for which continuing education units (CEUs) are awarded.
(22) 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. 
(23) 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 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 August 3, 1998.
TRD-9812279
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER B.General Provisions
19 TAC sec.sec.9.21-9.31
The Texas Higher Education Coordinating Board adopts new sec.sec.9.21-9.31, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (General Provisions) with changes to the proposed text as 
published in the June 5, 1998 issue of the Texas Register (23 TexReg 5898). 
Section 9.21 is being adopted without changes and will not be republished. 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. 
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments and changes were incorporated into 
the proposed rules. 
The new rules are adopted under 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), 13.003, 130.005, 130.0051, 130.008, 
and 130.009, 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).

sec.9.22. Authority. 
The Texas Education Code, sec.sec.51.308, 51.403(e), 51.911, 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. 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.9.24. 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.9.25. 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.9.26. 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.9.27. 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.9.28. 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 
9.29 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.9.29. 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.9.30. 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.9.31. Uniform Dates for Adding/Dropping Courses Pertaining to Refunds. 
(a) Courses at public community/junior colleges may be added by students up to 
and including the official census date. 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). 
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 August 3, 1998.
TRD-9812280
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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 adopts new sec.sec.9.51-9.55, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Purpose, Role and Mission) without changes to the proposed 
text as published in the June 5, 1998, issue of the Texas Register (23 TexReg 
5899). 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 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. 
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments. 
The new rules are adopted under 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), 13.003, 130.005, 130.0051, 130.008, 
and 130.009, 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). 
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 August 3, 1998.
TRD-9812281
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts the repeal of sec.sec.9.61-
9.77, concerning Basic Standards without changes to the proposed text as 
published in the June 5, 1998, issue of the Texas Register (23 TexReg 5900). 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 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under 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, which provides the Texas Higher Education Coordinating Board with 
the authority to adopt rules concerning Basic Standards. 
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 August 3, 1998.
TRD-9812247
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Program Development in Public Community/Junior
College Districts and Technical Colleges
SUBCHAPTER D.Transferable Academic Courses
19 TAC sec.sec.9.71-9.77
The Texas Higher Education Coordinating Board adopts new sec.sec.9.71-9.77, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Transferable Academic Courses). Section 9.75 is being 
adopted with changes to the proposed text as published in the June 5, 1998, 
issue of the Texas Register (23 TexReg 5901). Sections 9.71-9.74, 9.76, and 
9.77, are being adopted without changes and will not be republished. 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. 
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments and changes were incorporated into 
the proposed rules. 
The new rules are proposed under 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), 13.003, 130.005, 130.0051, 130.008, 
and 130.009, 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).

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 programs as 
appropriate. 
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 August 3, 1998.
TRD-9812282
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

CHAPTER 9.Public Junior Colleges
SUBCHAPTER E.Operational Provisions
19 TAC sec.sec.9.91-9.111
The Texas Higher Education Coordinating Board adopts the repeal of sec.sec.9.91-
9.111, concerning Operational Provisions without changes to the proposed text as 
published in the June 5, 1998, issue of the Texas Register (23 TexReg 5902). 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. 
There were no comments received regarding the repealed rules.
The repeal of the rules is adopted under 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, which provides the Texas Higher Education Coordinating Board with 
the authority to adopt rules concerning Operational Provisions. 
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 August 3, 1998.
TRD-9812267
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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 adopts new sec.sec.9.91-9.97, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Certificate and Associate Degree Programs) without changes 
to the proposed text as published in the June 5, 1998 issue of the Texas 
Register (23 TexReg 5903). 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. 
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments. 
The new rules are proposed under 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), 13.003, 130.005, 130.0051, 130.008, 
and 130.009, 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.
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 August 3, 1998.
TRD-9812283
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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 adopts new sec.sec.9.111-9.117, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Workforce Continuing Education Courses) without changes to 
the proposed text as published in the June 5, 1998, issue of the Texas Register 
(23 TexReg 5904). 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. 
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments. 
The new rules are adopted under 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), 13.003, 130.005, 130.0051, 130.008, 
and 130.009, 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). 
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 August 3, 1998.
TRD-9812284
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER G.Contractual Agreements
19 TAC sec.sec.9.121-9.128
The Texas Higher Education Coordinating Board adopts new sec.sec.9.121-9.128, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Contractual Agreements). Section 9.128 is being adopted with 
changes to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5906). Sections 9.121-9.127 are being adopted without 
changes and will not be republished. 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.
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments and changes were incorporated into 
the proposed rules. 
The new rules are adopted under 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), 13.003, 130.005, 130.0051, 130.008, 
and 130.009, 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). 

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 which has not been 
approved by the Board, even if such course is taught under a contractual 
agreement.
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 August 3, 1998.
TRD-9812285
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts the repeal of 
sec.sec.9.131-9.137, concerning Approval of Partnership Agreements Between 
Community/Junior Colleges and Upper-Level Universities or Centers without 
changes to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5905). 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.
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under 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, 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.
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 August 3, 1998.
TRD-9812268
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER G.Approval of Postsecondary Tehnical and Vocational Programs for 
State Appropriations to Community and Junior Colleges and Texas State Technical 
College
19 TAC sec.sec.9.151-9.156
The Texas Higher Education Coordinating Board adopts 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 without changes to the proposed text as published 
in the June 5, 1998, issue of the Texas Register (23 TexReg 5908). 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.
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under 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, 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. 
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 August 3, 1998.
TRD-9812269
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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 adopts new sec.sec.9.161-9.163, 
concerning Program Development in Public Community/Junior College Districts and 
Technical Colleges (Distance Education) without changes to the proposed text as 
published in the June 5, 1998, issue of the Texas Register (23 TexReg 5908). 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. 
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments. 
The new rules are adopted under 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), 13.003, 130.005, 130.0051, 130.008, 
and 130.009, 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). 
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 August 3, 1998.
TRD-9812286
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts the repeal of 
sec.sec.9.171-9.174, concerning Postsecondary Apprenticeship Training Programs 
without changes to the proposed text as published in the June 5, 1998, issue of 
the Texas Register (23 TexReg 5909). 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under 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, which provides the Texas Higher Education Coordinating Board with 
the authority to adopt rules concerning Postsecondary Apprenticeship Training 
Programs. 
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 August 3, 1998.
TRD-9812270
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

SUBCHAPTER I.Contractual Agreements
19 TAC sec.sec.9.191-9.194
The Texas Higher Education Coordinating Board adopts the repeal of 
sec.sec.9.191-9.194, concerning Contractual Agreements without changes to the 
proposed text as published in the June 5, 1998, issue of the Texas Register (23 
TexReg 5910). 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under 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, which provides the Texas Higher Education Coordinating Board with 
the authority to adopt rules concerning Contractual Agreements. 
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 August 3, 1998.
TRD-9812271
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts 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 without changes to the proposed text as published in the June 5, 1998, 
issue of the Texas Register (23 TexReg 5910). 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under 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, 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. 
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 August 3, 1998.
TRD-9812272
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts 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 without 
changes to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5911). 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under 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, 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.
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 August 3, 1998.
TRD-9812273
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts the repeal of 
sec.sec.9.270-9.283, concerning Integrated Vocational-Technical Education and 
Training Delivery System for a Quality Work Force without changes to the 
proposed text as published in the June 5, 1998, issue of the Texas Register (23 
TexReg 5911). 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under 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, 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. 
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 August 3, 1998.
TRD-9812274
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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
The Texas Higher Education Coordinating Board adopts the repeal of sec.sec.11.1-
11.6, concerning Purpose and Authority without changes to the proposed text as 
published in the June 5, 1998, issue of the Texas Register (23 TexReg 5912). 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 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under Texas Education Code, sec.sec.61.051, 
61.053, 61.056, 61.058, 61.0583, 135.01, 135.04, 135.02, and 135.06, which 
provides the Texas Higher Education Coordinating Board with the authority to 
adopt rules concerning Purpose and Authority. 
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 August 3, 1998.
TRD-9812275
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

CHAPTER 11.Texas State Technical College System
SUBCHAPTER A.Purpose, Authority, and Definitions
19 TAC sec.sec.11.1-11.3
The Texas Higher Education Coordinating Board adopts new sec.sec.11.1-11.3, 
concerning Texas State Technical College System (Purpose, Authority and 
Definitions) without changes to the proposed text as published in the June 5, 
1998, issue of the Texas Register (23 TexReg 5913). 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. 
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments. 
The new rules are adopted under Texas Education Code, sec.sec.61.051, 61.053, 
61.056, 61.058, 61.0583, 135.01, 135.04, 135.02, and 135.06, which provides the 
Texas Higher Education Coordinating Board with the authority to adopt rules 
concerning Texas State Technical College System (Purpose, Authority, and 
Definitions).  
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 August 3, 1998.
TRD-9812287
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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 adopts the repeal of 
sec.sec.11.21-11.27, concerning Basic Standards without changes to the proposed 
text as published in the June 5, 1998, issue of the Texas Register (23 TexReg 
5913). 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 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under Texas Education Code, sec.sec.61.051, 
61.053, 61.056, 61.058, 61.0583, 135.01, 135.04, 135.02, and 135.06, which 
provides the Texas Higher Education Coordinating Board with the authority to 
adopt rules concerning Basic Standards. 
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 August 3, 1998.
TRD-9812276
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 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 adopts new sec.sec.11.21-11.30, 
concerning Texas State Technical College System (General Provisions) without 
changes to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5914). 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. 
Comments regarding the new proposed rule was received from the following 
institutions: Alamo Community College District; Alvin Community College; Cisco 
Junior College; Kilgore College; Laredo Community College; Lee College; Panola 
College; Texas Sate Technical College-Waco; Trinity Valley Community College; 
Vernon Regional Junior College; The Victoria College; and Wharton County Junior 
College. The comments referred to standardization and clarification of 
definitions; deletion of the requirements for small class reports; faculty 
developmental leave and use of English; change from fifth class day to census 
date as the final date for adding classes; and clarification in disapproval of 
courses. The agency agreed with the comments. 
The new rules are adopted under Texas Education Code, sec.sec.61.051, 61.053, 
61.056, 61.058, 61.0583, 135.01, 135.04, 135.02, and 135.06, which provides the 
Texas Higher Education Coordinating Board with the authority to adopt rules 
concerning Texas State Technical College System (General Provisions).
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 August 3, 1998.
TRD-9812288
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

CHAPTER 11.Texas State Technical College
SUBCHAPTER C.Operational Provisions
19 TAC sec.sec.11.41-11.55
The Texas Higher Education Coordinating Board adopts the repeal of 
sec.sec.11.41-11.55, concerning Operational Provisions without changes to the 
proposed text as published in the June 5, 1998, issue of the Texas Register (23 
TexReg 5915). 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 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. 
There were no comments received regarding the repealed rules. 
The repeal of the rules is adopted under Texas Education Code, sec.sec.61.051, 
61.053, 61.056, 61.058, 61.0583, 135.01, 135.04, 135.02, and 135.06, which 
provides the Texas Higher Education Coordinating Board with the authority to 
adopt rules concerning Operational Provisions. 
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 August 3, 1998.
TRD-9812277
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 483-6162

TITLE 22. EXAMINING BOARDS
PART XXII. Texas State Board of Public Accountancy
CHAPTER 505. The Board
22 TAC sec.505.10
The Texas State Board of Public Accountancy adopts an amendment to sec.505.10, 
concerning Board Committees, without changes to the proposed text as published 
in the June 5, 1998, issue of the Texas Register (23 TexReg 5922). 
The amendment will function by expanding the authority of the Rules Committee to 
review any rule and will encourage other board committees to take advantage of 
the Rules Committee's expertise. 
No comments were received regarding adoption of the amendment. 
The amendment is adopted under Texas Civil Statutes, Article 41a-1, Section 6, 
which provides the Texas State Board of Public Accountancy with the authority to 
make such rules as may be necessary or advisable to carry in effect the purposes 
of the law. 
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 August 3, 1998.
TRD-9812180
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 305-7848

PART XXIII. Texas Real Estate Commission
CHAPTER 535.Provisions of the Real Estate License Act
SUBCHAPTER S.Registration of Easement or Right-of-Way Agents
22 TAC sec.535.400, sec.535.403
The Texas Real Estate Commission (TREC) adopts an amendment to sec.535.400, 
concerning registration of easement or right-of-way agents, and new sec.535.403, 
concerning renewal of registration, without changes to the proposed text as 
published in the May 22, 1998, issue of the Texas Register (23 TexReg 5309). 
The amendment to sec.535.400 adopts by reference two revised application forms 
used by individuals or business entities in seeking registration as an easement 
or right-of-way agent. The forms were revised to obtain additional information 
about the addresses of the applicant and to clarify which business entities were 
required to provide a certificate of good standing from the comptroller. New 
sec.535.403 provides a procedure for annual renewal of a registration and adopts 
by reference an application form which a registrant would use for renewal. 
Adoption of the amendment and new section is necessary clarify application 
procedures and permit renewal of registrations issued by TREC.
No comments were received regarding the proposals. . 
The amendment and new section are adopted under Texas Civil Statutes, Article 
6573a, sec.5(h), which authorize the Texas Real Estate Commission to make and 
enforce all rules and regulations necessary for the performance of its duties 
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 July 29, 1998.
TRD-9812008
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Effective date: August 18, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 465-3900

PART XXV. Structural Pest Control Board
CHAPTER 591. General Provisions
22 TAC sec.591.21
The Structural Pest Control Board adopts an amendment to sec.591.21, without 
changes to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5924). 
The justification for the rule is the amendment will allow the use of termite 
control products with a mode of acting other than contact poisoning while 
remaining consistent with Structural Pest Control Board termite control 
standards. The rule will function in that the amendment creates a definition of 
barrier which includes the concept of a treated zone. 
No comments were received. No groups or associations submitted comments for or 
against the rule. 
The amendment is adopted under Article 135b-6 which provides the Structural Pest 
Control Board with the authority to license and regulate the provision of 
structural pest control services. 
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 July 31, 1998.
TRD-9812053
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Effective date: September 1, 1998
Proposal publication date: June 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 adopt an amendment to sec.595.5, without 
changes, to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5924). The justification for the rule is the amendment 
will provide more efficient contact between pest control customers and their 
service provider when customers are attempting to reach their service provider.
The rule will function in that the amendment expands the requirement for printed 
business identification information to include invoices and termite treatment 
disclosure documents. 
No comments were received. No groups or associations submitted comments for or 
against the rule. 
The amendment is adopted under Article 135b-6, which provides the Structural 
Pest Control Board with the authority to license and regulate the structural 
pest control industry. 
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 July 31, 1998.
TRD-9812054
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Effective date: September 1, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 451-7200

CHAPTER 599. Treatment Standards
22 TAC sec.599.7
The Structural Pest Control Board adopt an amendment to sec.599.7, without 
changes, to the proposed text as published in the June 5, 1998, issue of the 
Texas Register (23 TexReg 5925). Justification for the rule is the amendment 
will create a better understanding of allowable locations for the inspection 
notice and higher durability of notices placed in the new alternative bath trap 
access. 
The rule will function in that the amendment conforms language to that found in 
the New Texas Official Wood Destroying Insect Report. It also allows the 
inspection notice to be placed in the bath trap as an alternative. 
No comments were received. There were no groups or associations that submitted 
comments for or against the rule. 
The amendment is adopted under Article 135b-6, which provides the Structural 
Pest Control Board with the authority to license and regulate the provision of 
structural pest control services. 
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 July 31, 1998.
TRD-9812055
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Effective date: September 1, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 451-7200

PART XXXIII. Texas State Board of Examiners of Perfusionists
CHAPTER 761.Perfusionists
22 TAC sec.761.2
The Texas State Board of Examiners of Perfusionists (board) adopts an amendment 
to sec.761.2 concerning fees for licensure as a perfusionist, with changes to 
the proposed text as published in the May 8, 1998, issue of the Texas Register 
(23 TexReg 4506). 
The amendment implements Texas Civil Statutes, Article 4529e, sec.9 which 
requires fees charged, in the aggregate, to produce sufficient revenue to cover 
the cost of administering the Act. The increase in licensure renewal fees from 
$75 to $175 is estimated to generate additional revenue to cover the cost of 
administering the Act. 
The department is making the following minor change due to a department staff 
comment to improve the accuracy of the section. 
Change: Concerning sec.761.2(s), paragraphs (3) - (7) were inadvertently left 
out and not published in the May 8, 1998, issue of the Texas Register, and 
therefore "(3) - (7) (No Change.)" is being added since the information is 
existing rule text. 
No comments were received on the proposed rule during the comment period. 
The amendment is adopted under Texas Civil Statutes, Article 4529e, sec.sec.7 
and 9 which provide the Texas State Board of Examiners of Perfusionists with the 
authority to adopt rules concerning the regulation of perfusionists and to 
establish fees.

sec.761.2.The Board's Operation.
(a) -(r) (No change.) 
(s) Fees. 
(1) (No change.) 
(2) Schedule of fees for licensure as a perfusionist and a provisional licensed 
perfusionist is as follows: 
(A) -(B) (No change.) 
(C) renewal fee - $175; 
(D) -(F) (No change.)
(3) -(7) (No change.)
(t) (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 July 31, 1998.
TRD-9812072
James O. Fines, III
Chairman
Texas State Board of Examiners of Perfusionists
Effective date: September 1, 1998
Proposal publication date: May 8, 1998
For further information, please call: (512) 458-7236

TITLE 25. HEALTH SERVICES
PART I. Texas Department of Health
CHAPTER 29.Purchased Health Services
SUBCHAPTER A.Medicaid Procedures for Providers
25 TAC sec.29.6
On behalf of the State Medicaid Director, the Texas Department of Health 
(department), adopts new sec.29.6, concerning surety bond requirements for 
Medicaid providers, without changes to the proposed text as published in the 
April 24, 1998, issue of the Texas Register (23 TexReg 3995), and therefore the 
section will not be republished.
Senate Bill 30, 75th Legislature, 1997, amended the Human Resources Code, 
Chapter 32, to require the department to establish a rule requiring provider 
types that have a history of or potential for fraud or abuse to file a surety 
bond with the department, naming the department as the obligee of the bond. 
Provider types requiring a surety bond will be determined by the Division of 
Medicaid Program Integrity, Office of Investigations and Enforcement, of the 
Texas Health and Human Services Commission (HHSC). HHSC will also set the amount 
of the bonds and the bonding requirement will apply to all providers of a 
designated provider type. The bond will be payable to the department and will 
allow the department to recover its costs and expenses as well as any damages, 
fines and penalties imposed as a result of the investigation, prosecution and 
conviction of a provider for fraud and abuse. 
The following comment was received concerning the proposed amendment. Following 
the comment is the department's response. 
Comment: The commenter suggested that since Medicare requires a bond for Durable 
Medical Equipment (DME) providers, that bond could also be applicable for the 
Medicaid program. The commenter also suggested that the intent of the rule could 
be accomplished by accreditation or licensure. 
Response: The department disagrees with the commenter. Senate Bill 30 did not 
limit the provider type to DME providers, but required HHSC to establish the 
provider types to whom it would apply. In addition, the Medicare bond would not 
be payable to the department as obligee and could not satisfy the intent that 
the department have a resource to recover against. The intent of the rule was to 
reduce and prevent fraud and abuse in the Medicaid program and this cannot be 
accomplished by accreditation or licensure. No changes were made as a result of 
this comment. 
The commenter was D and L Medical Products, Inc. The commenter was against the 
amendment in its entirety. 
This new section is adopted under the Human Resources Code, sec.32.021 and 
Government Code sec.531.021, which provide the Health and Human Services 
Commission with authority to adopt rules to administer the state's medical 
assistance program and is submitted by the Texas Department of Health under its 
agreement with the Health and Human Services Commission to operate the purchased 
health services program and as authorized under Chapter 15, sec.1.07, Acts of 
the 72nd Legislature, First Called Session (1991). 
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 July 31,1998.
TRD-9812070
Susan K. Steeg
General Counsel
Texas Department of Health
Effective date: August 20, 1998
Proposal publication date: April 24, 1998
For further information, please call: (512) 458-7236

SUBCHAPTER D.Medicaid Home Health Services
25 TAC sec.29.308
On behalf of the State Medicaid Director, the Texas Department of Health, 
(department) adopts new sec.29.308, concerning competitive procurement of 
durable medical equipment (DME) and supplies without changes to the proposed 
text as published in the March 27, 1998, issue of the Texas Register (23 TexReg 
3179), and therefore the section will not be republished. 
Senate Bill 30, sec.2.08, 75th Legislature, 1997, requires the department to 
develop a process for selecting providers of DME and supplies which encourage 
competition. 
The rule sets forth the criteria the department will use for determining which 
types of DME and supplies lend themselves to procurement through a competitive 
process and the criteria for selecting the providers which whom the department 
will contract, which will result in savings to the department. 
No comments were received on the proposal during the comment period.
The new section is adopted under the Human Resources Code, sec.32.021 and 
Government Code sec.531.021, which provide the Health and Human Services 
Commission with the authority to adopt rules to administer the state's medical 
assistance program and is submitted by the Texas Department of Health under its 
agreement with the Health and Human Services Commission to operate the purchased 
health services program and as authorized under Chapter 15, sec.1.07, Acts of 
the 72nd Legislature, First Called Session (1991). 
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 July 31,1998.
TRD-9812071
Susan K. Steeg
General Counsel
Texas Department of Health
Effective date: August 20, 1998
Proposal publication date: March 27, 1998
For further information, please call: (512) 458-7236

TITLE 30. ENVIRONMENTAL QUALITY
PART I. Texas Natural Resource Conservation Commission
CHAPTER 114.Control of Air Pollution From Motor Vehicles
SUBCHAPTER A.Definitions
30 TAC sec.114.1, sec.114.3
The commission adopts amendments to Subchapter A, sec.114.1 and sec.114.3, 
concerning Definitions; Subchapter E, sec.sec.114.150, 114.151, and 114.153-
114.157, and the repeal of sec.114.152, concerning Low Emission Fleet Vehicle 
Requirements; Subchapter F, sec.114.201 and sec.114.202, concerning Vehicle 
Retirement and Mobile Emission Reduction Credits; and a revision to the State 
Implementation Plan (SIP) concerning this adoption. All sections are adopted 
without changes to the proposed text as published in the April 24, 1998 issue of 
the Texas Register (23 TexReg 3999). 
EXPLANATION OF ADOPTED RULES
Revisions to Chapter 114, concerning Control of Air Pollution from Motor 
Vehicles, and the corresponding SIP revision implement Senate Bill (SB) 681, 
Acts of the 75th Texas Legislature, 1997, concerning the low emission vehicle 
(LEV) fleet requirements; the Federal Clean Air Act as amended, Acts of the 
101st U.S. Congress, 1990, concerning provisions for attainment and maintenance 
of health protective, national ambient air quality standards; and for other 
purposes. Sections 114.1, 114.3, 114.151, 114.153, 114.155-114.157, and 114.201-
114.202 have been previously submitted to the United States Environmental 
Protection Agency (EPA) as part of the SIP; therefore, revisions to these 
sections are considered to be revisions to the SIP. In addition, sec.114.150 and 
sec.114.154, concerning Requirements for Mass Transit Authorities and Exceptions 
for Certain Mass Transit Authorities respectively, are considered to be 
revisions to the SIP because mass transit vehicles are now being used as part of 
the state's substitute program. 
Section 114.1 and sec.114.3, concerning Definitions, incorporate numerous 
editorial changes to ensure the definitions are consistent with the Guiding 
Principles and policies of the commission, and are consistent in format, style, 
and tone per commission guidelines. New and amended definitions were also 
numbered to be consistent with Texas Register rules (23 TexReg 1289). In 
sec.114.1(8), the commission requested specific public comment on the definition 
of "Law enforcement vehicle." The commission considered the option of allowing 
private law enforcement vehicles to qualify for the exemption from the fleet 
vehicle requirements, but was unsure if there were any private vehicles which 
were truly involved in law enforcement. Based on the lack of public comment 
supporting exemptions for private law enforcement vehicles, the definition for 
"law enforcement vehicle" was not modified to include private law enforcement 
vehicles. Additional clarification was added to the definition of "low emission 
vehicle" in sec.114.1. The title of sec.114.3 was changed from "Low Emission 
Fleet Vehicle Definitions" to "Low Emission Vehicle Fleet Definitions" to better 
reflect the nature of the program. Several LEV fleet definitions were added to 
sec.114.3 to define terms specific to the state's substitute LEV program and the 
requirements of SB 681. These added definitions include "affected area," 
"affected entity," "normally operates," "normally parked at the residence of the 
individual," "private entity," "private fleet," "projected net costs," and 
"purchase date." The commission requested specific public comment on a new 
definition for "normally parked at the residence of the individual." The intent 
of the proposed wording was to specify how much time a vehicle should be parked 
at the individual's residence after duty hours in order to qualify for the 
exemption from the fleet vehicle requirements. One definition, "mobile emission 
reduction credit," was moved to sec.114.1 because it applied to multiple 
subchapters of Chapter 114. Finally, several definitions were deleted because 
they were no longer necessary, or they were defined in other chapters. These 
deleted definitions include "Beaumont/Port Arthur nonattainment area," "capable 
of being centrally fueled," "centrally fueled," "clean-fuel vehicle," "control," 
"Dallas/Fort Worth nonattainment area," "El Paso nonattainment area," 
"Houston/Galveston nonattainment area," "operate," "own," and "private person." 
Revisions to Subchapters E and F incorporate numerous editorial changes to 
ensure the language is consistent with the Guiding Principles and policies of 
the commission, and is consistent in format, style, and tone per commission 
guidelines. In addition, the term "clean fuel vehicle" was changed to "low 
emission vehicle" or "LEV" throughout the chapter, and the title of Subchapter E 
was changed from "Low Emission Fleet Vehicles" to "Low Emission Vehicle Fleets" 
to better reflect the nature of the program. Other revisions to specific 
sections in Subchapters E and F are discussed below. 
Section 114.150, concerning Requirements for Mass Transit Authorities, contains 
the LEV requirements for mass transit authorities. The basic requirement is for 
the affected mass transit authorities to have 50% of their total fleet vehicles 
certified as LEVs. LEVs, in excess of the 50% requirement, may be eligible for 
Program Compliance Credit (PCC) according to sec.114.157, or Mobile Emission 
Reduction Credits (MERCs) according to sec.114.201. Subsection (a) changed from 
listing specific nonattainment areas to referring to an affected area as defined 
in sec.114.3. Subsection (b) dropped the compliance date of September 1, 1996, 
because the date had already passed. Subsection (c) added the provision that 
requirements may be met by using PCCs and MERCs. Subsection (d) changed the term 
"qualifying vehicles" to include vehicles certified to LEV and EPA standards 
more stringent than LEV. Subsection (e) combined the old subsections (e) and (f) 
and extended the date from September 1, 1998, until September 1, 1999, for those 
vehicles converted, purchased, leased, or otherwise acquired prior to that date 
to be counted toward compliance with percentage requirements. Subsection (e) 
also changed the dual fuel vehicle certification from EPA's Title 40 Code of 
Federal Regulations (40 CFR), Part 88 to Texas' recognized fuels such as 
electricity, ethanol, liquefied petroleum gas, methanol, and natural gas; and 
also added specific emission limits specified by vehicle weight and EPA 
emissions standards. Subsection (g) (formerly subsection (h)) added specific 
reporting requirements for mass transit fleets. 
Section 114.151, concerning Requirements for Local Governments and Private 
Entities, contains LEV requirements for local governments and private entities. 
The LEV requirements for these fleets are 30% of fleet vehicle purchases after 
September 1, 1998, or at least 10% of the total fleet vehicles as of September 
1, 1998; 50% of fleet vehicle purchases after September 1, 2000; 70% of light-
duty fleet vehicle purchases after September 1, 2002; and 50% of heavy-duty 
fleet vehicle purchases after September 1, 2002. Subsection (a) was revised to 
refer to affected areas, as defined in sec.114.3 of this title rather than 
specific nonattainment areas. Subsection (b) was revised to include leased fleet 
vehicles in the requirements. In addition, subsection (b) deleted the 
requirement of 20% of existing fleet vehicles as of September 1, 2000; changed 
the percentages for light-duty fleet vehicles purchased after September 1, 2002, 
from 90% to 70%; added a 50% percentage for heavy-duty fleet vehicle purchases 
after September 1, 2002; and removed the requirement of 45% in the total fleet 
as of September 1, 2002. Subsection (c) reduced the no-purchase exemption from 
90 percent to 70 percent. Subsection (e) changed the term "clean-fuel vehicles" 
to the term "low emission vehicles." Subsection (f) clarifies that this section 
does not require the conversion and EPA certification of conventional vehicles 
to the LEV standards. Subsection (g) allows specified Texas fuels and 
uncertified conversions prior to 1995 instead of 1998 to be used as credit. 
Subsection (i) deleted the September 1, 1997 date because it had already passed, 
and added information to be included in fleet registration. Subsection (k) 
changed the first reporting year from 1998 to every even-numbered year. 
Section 114.152, concerning Use of Certain Vehicles for Compliance, was 
repealed, and the applicable requirements and allowances were moved into 
sec.114.150 and sec.114.151. 
Section 114.153, concerning Exceptions, provides for exceptions from the LEV 
requirements. Affected entities may be granted an exception from the LEV 
requirements, on a case-by-case basis, if: 1) a firm is engaged in a fixed price 
contract with a public works agency where compliance with the fleet 
implementation schedule requirements of the state's substitution program would 
cause economic harm to the firm; 2) adequate fueling required for the operation 
of LEVs is unavailable; 3) financing for the increased cost of operation of LEVs 
is unavailable from fuel suppliers; 4) the costs, over the lifetime of the LEV's 
operation, are more than the costs of the operation of a conventional vehicle; 
or 5) LEVs sufficient to meet business needs are unavailable. Subsection (a) 
added the fifth provision for exception provided that there are insufficient 
LEVs to meet business needs. A new subsection (c) states alternatives to 
applying for an exception to the applicable LEV requirements. 
Section 114.154, concerning Exceptions for Certain Mass Transit Authorities, 
incorporated numerous editorial changes to ensure the language is consistent 
with the Health and Safety Code as amended by SB 681, 75th Legislature, 1997; 
with the Guiding Principles and policies of the commission; and in format, 
style, and tone with commission guidelines. In addition, the term "clean fuel 
vehicle" was changed to "low emission vehicle" throughout the section. 
Section 114.155, concerning Reporting, provides the general reporting 
requirements for local governments and private entities. Each affected entity 
will submit their biennial fleet report to the executive director by September 1 
of each even numbered year. Subsection (a) changed the reporting requirement 
from annually to biennially, and changed some of the reporting information. 
Section 114.156, concerning Record Keeping, was modified to require the affected 
entities to maintain copies of all reports submitted in accordance with 
sec.114.155. 
Section 114.157, concerning Low Emission Vehicle Fleet Program Compliance 
Credits, incorporated numerous editorial changes to ensure the language is 
consistent with the Guiding Principles and policies of the commission, and is 
consistent in format, style, and tone with commission guidelines. The name of 
sec.114.157 was changed by adding "Low Emission Vehicle Fleet" in order to 
clarify the program specific nature of the section. In addition, the term "clean 
fuel vehicle" was changed to "low emission vehicle" throughout the section. 
Section 114.201, concerning the Mobile Emission Reduction Credit Program, 
incorporated editorial changes to ensure the language is consistent with the 
Guiding Principles and policies of the commission, and is consistent in format, 
style, and tone with commission guidelines. In addition, the term "clean fuel 
vehicle" was changed to "low emission vehicle" throughout the section. 
Section 114.202, concerning The Texas Mobile Emission Reduction Credit Fund, was 
changed to specify "low emission vehicle" in place of "clean fuel vehicle." 
FINAL REGULATORY IMPACT ANALYSIS 
The commission has reviewed the adopted 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, 
and it does not meet any of the four applicability requirements listed in 
sec.2001.0225(a). The specific intent of the rules is to protect the environment 
and reduce risks to human health from environmental exposure by adopting state 
requirements which are essentially equivalent to federal requirements regarding 
low emission fleet vehicles. However, the rules do not adversely affect the 
economy because they lessen the financial impact of the current rules through 
exceptions. If EPA determines that this program is not essentially equivalent to 
the federal program, it will still be protective of the environment and human 
health because the commission will make up the shortfall through other measures. 
In this way, there is no adverse impact to the environment or the public health 
and safety of the state. Therefore, this adoption does not meet the full 
definition of a major environmental rule. The rulemaking also does not meet any 
of the four applicability requirements for being subject to sec.2001.0025 as 
stated below. It will fulfill an obligation mandated by Part C, Subchapter II of 
the Federal Clean Air Act (FCAA), which requires states to implement a clean 
fuel fleet program, and is essentially equivalent to the federal law. The 
proposal does not exceed requirements specified by Chapter 382, Subchapter F, 
Health and Safety Code. There is not an agreement or contract between the state 
and the federal government which lays out requirements for this program; and the 
program is directed by Chapter 382, Subchapter F, Health and Safety Code, rather 
than being adopted under the general powers of the commission. The commission 
received no public comment on the Regulatory Impact Analysis.
TAKINGS IMPACT ASSESSMENT 
The commission has prepared a Takings Impact Assessment for these rules pursuant 
to Texas Government Code, sec.2007.043. The following is a summary of that 
assessment. SB 681, Acts of the 75th Legislature, 1997, modified requirements 
for certain motor vehicle fleets in the Texas Health and Safety Code. Prior to 
the passage of SB 681, the commission adopted LEV fleet requirements based on 
the provisions of SB 200, Acts of the 74th Legislature, 1995. The program was 
adopted as an opt-out of the Federal Clean Fuel Fleet (FCFF) program required by 
the 1990 FCAA Amendments. SB 681 was intended to replace the existing program 
requirements of sec.sec.114.1, 114.3, 114.150-155, 114.157, and 114.201-114.202. 
The primary purpose of these rules is to meet requirements for the commission to 
adopt rules requiring fleets to purchase LEVs. This action is being taken to 
comply with federal and state legislative mandates. This adopted rulemaking does 
not affect private real property, since fleet vehicles are not considered to be 
private real property. Most capital expenditures will involve the purchase of 
vehicles. However, the regulation states that the purchase of vehicles for 
compliance is in the affected entity's discretion (Health and Safety Code, 
sec.382.134(e)), and the statute has provisions for a cost-effectiveness 
exception (Health and Safety Code, sec.382.136). 
COASTAL MANAGEMENT PLAN CONSISTENCY REVIEW 
The commission has determined that the adopted rulemaking relates to an action 
or actions subject to the Texas Coastal Management Program (CMP) in accordance 
with the Coastal Coordination Act of 1991, as amended (Texas Natural Resource 
Code, sec.sec.33.201 et. seq.), and the commission's rules in 30 TAC Chapter 
281, Subchapter B, concerning Consistency with the Texas Coastal Management 
Program. As required by 31 TAC sec.505.11(b)(2) and 30 TAC sec.281.45(a)(3), 
relating to actions and rules subject to the CMP, commission rules governing air 
pollutant emissions must be consistent with the applicable goals and policies of 
the CMP. The commission has reviewed this action for consistency with the CMP 
goals and policies in accordance with the rules of the Coastal Coordination 
Council and has determined that the adoption 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 40 CFR, to 
protect and enhance air quality in the coastal area, (31 TAC sec.501.14(q)). 
This adoption does not change existing requirements which already comply with 
regulations at 40 CFR, and is therefore consistent with this policy. No persons 
submitted commented on the consistency of the proposed rules with the CMP during 
the public comment period. 
HEARINGS AND COMMENTERS 
Public hearings on this proposal were held in Austin on May 19, 1998, and in 
Irving on May 20, 1998. Six persons attended the Austin hearing and one person 
provided oral comments. Fifteen persons attended the Irving hearing, but no 
persons provided oral comments. A good question and answer session occurred 
before and after each of the hearings. Nine persons submitted written comments 
by the close of the comment date of May 26, 1998. 
The following 10 commenters submitted the oral and written comments: the 
Alternative Fuels Research and Education Division of the Railroad Commission of 
Texas (AFRED), Amoco Corporation (Amoco), the City of Coppell (Coppell), EPA 
Region 6 (EPA), City of Farmers Branch (Farmers Branch), Houston Clean Cities 
(HCC), Houston Industries Incorporated (HII), the City of Plano (Plano), the 
Port of Houston Authority (PHA), and the Texas Association of Business and 
Chambers of Commerce (TABCC). 
ANALYSIS OF TESTIMONY 
General Comments 
HCC supported the cooperation with the state but hopes this is the last rule 
change. TABCC supported the revisions which clarified program requirements and 
contradictions of the past plans, as well as the state participation in the 
National Low Emission Vehicle (NLEV) program. Coppell, HII, and EPA expressed 
support of portions of the proposal, opposition to portions of the proposal, and 
suggested changes. Plano, Amoco, Farmers Branch, and AFRED did not express 
support, but expressed opposition to portions of the proposal and suggested 
changes. Finally, PHA neither expressed support or opposition to the proposal, 
but suggested changes. The major concerns for the commenters included a date 
extension on grandfathering of vehicles, the use of alternative fuels, and 
purchase requirements. These concerns, issues, and changes are addressed below. 
The commission has reviewed these issues and determined that many of the 
concerns expressed by the commenters cannot be addressed within the scope of 
this rulemaking, however, because SB 681 has mandated requirements for these 
areas. 
A concern for the commission is that EPA has denied the possibility of using the 
NLEV program as a backfill for any shortfalls that the Texas Clean Fleet (TCF) 
program may have with the SIP requirements. The commission proposes to address 
this issue by adding the reduction benefits of fugitive emissions and volatile 
organic compound (VOC) transfer operations at bulk gasoline terminals to offset 
any shortfalls from the state's substitute program. 
SIP Submittal 
EPA commented that sec.114.150 and sec.114.154, concerning Requirements for Mass 
Transit Authorities and Exceptions for Certain Mass Transit Authorities 
respectively, were not included in the SIP submittal; however, mass transit was 
included in the equivalency determination in Appendix B. EPA stated that to 
exclude certain mobile vehicles from the state's SIP submittal and then include 
them in the equivalency determination is inconsistent. 
Transit fleets are included in the SIP submittal as stated on page 3 of the SIP 
document, which specifies, "The state's substitute program covers transit, local 
government and private fleets operated primarily within the serious, severe, or 
extreme nonattainment areas of Texas." In addition, the rules governing transit 
fleets are included in the list of the rules governing the state's program on 
page 6 of the SIP, which states, "The state's substitute program is codified in 
30 TAC sec.sec.114.1, 114.3, 114.150-114.151, 114.153-114.157, and 114.201-
114.202." However, the proposal preamble inadvertently omitted the two sections 
in the first paragraph of the section titled "Explanation of Proposed Rules." 
The two sections were added to the list of SIP rules in the adoption preamble 
and will be sent to EPA as part of the SIP submittal. Purchase Deadlines 
PHA commented that the September 1, 1998 deadline requiring that 30% of fleet 
vehicle purchases or 10% of the total fleet vehicles must be LEV should be 
extended to September 1999, because their 1998 fiscal vehicle budget was not 
based on these requirements. PHA also requested that if an alternative fuel 
source is to be implemented, the deadline of September 1, 1998 be extended to 
September 1, 1999 to allow time to effectively manage a transition to an 
alternative fuel source. 
The September 1, 1998 date, as stated in sec.114.252(b)(1), is a deadline by 
which affected fleets must report requested information to the commission (i.e., 
the number of vehicles and the selection of either the 10% option of total fleet 
vehicles for 1998 or 30% of future fleet vehicle purchases from September 1, 
1998 to September 1, 2000). The September 1, 1998 deadline is a statutory 
requirement set by the 75th Texas Legislature, through SB 681, and therefore 
cannot be extended to September 1, 1999. 
More Vehicle Manufacturers and Types Listed PHA questioned if there are plans to 
increase the selection of manufacturers and vehicle types of gasoline operated 
LEVs which meet LEV standards in Texas to compare with those available in 
California. They expressed concern that the limited selection will increase unit 
cost and might not meet vehicle type requirements that are needed by fleets. 
The commission acknowledges the concern for vehicle availability; however, 
California's LEV program offers a greater selection because auto manufacturers 
are required to sell a certain percentage of LEV or cleaner certified vehicles 
within the State of California. The State of California was allowed, through the 
1990 FCAA Amendments, to implement its own clean vehicle certification program, 
which is more stringent than NLEV and has been operating since 1990. The use of 
California cleaner burning gasoline, which is not available in Texas, helps auto 
manufacturers meet the requirements for California certification. Senate Bill 
681 directs the commission to provide exceptions in the TCF program if LEV-
certified vehicles are not available or are cost prohibitive to an organization. 
These exceptions are stated in sec.114.153(a)(1) and (5). 
Alternative Fuel Issues 
The City of Coppell is concerned that fueling infrastructure for alternative 
fuels has never been addressed by the TCF program. 
As the requirements of the TCF program are based on the LEV standard or cleaner, 
fleets can meet the program requirements by using any fuel they choose, as long 
as the vehicle/fuel configuration meets the LEV standard. Fueling infrastructure 
therefore is not addressed in the rule. However, sec.114.153(a)(2) and (3) of 
the rule covers exceptions for non-availability of fuel and inability to secure 
financing for fuels. 
AFRED commented that, although not directly on point with this rulemaking, the 
commission should amend its Texas Clean Air Strategy to include LEVs that 
operate on alternative fuels. AFRED believes any clean air strategy that does 
not emphasize the use of alternative fuels is incomplete. 
The commission feels that this is beyond the scope of this rulemaking. The 
rulemaking is based upon SB 681 which does not focus on fuel type, but on 
emission levels. 
PHA requested that if an alternative fuel source is to be implemented, the 
deadline of September 1, 1998 be extended to September 1, 1999 to allow time to 
effectively manage a transition to an alternative fuel source. 
The commission has made no change in response to this comment. The 75th Texas 
Legislature, through SB 681, directs the deadlines associated with the TCF 
program. The TCF program is an emission based program and does not require the 
use of an alternative fuel. 
Outreach Issues 
AFRED commented that because of the substantial changes to Texas' alternative 
fuels and clean fuel fleet programs during the last five years, affected 
entities should be educated about the requirements of the TCF program. 
The commission agrees with this comment. Briefings on the TCF program have been 
held in conjunction with Clean Cities meetings in Houston and Dallas. Plans are 
being made to coordinate workshops in all the affected areas regarding the TCF 
program. A guidance document that includes the TCF program requirements and 
compliance guidelines will also be distributed to all affected organizations. 
The commission has a website dedicated to the TCF program at 
http://www.tnrcc.state.tx.us/air/ms/tcf.htm that is updated regularly. In 
addition, periodic updates will also be sent via mail to participating 
organizations. 
The HCC program commented that they would be willing to work with commission 
staff in trying to disseminate information to the public in Houston with regard 
to the TCF program. 
The commission appreciates the interest and proposed participation of the HCC 
program in disseminating information on the TCF program. 
NLEV Issues 
The TABCC commented that when the NLEV program is implemented in Texas, it will 
decrease mobile source emissions, and that the TCF program should be revised or 
revoked when the NLEV program can demonstrate emission reductions needed by the 
TCF program. 
The commission concurs that the NLEV program will have a positive impact on air 
quality, beginning with model year 2001 vehicles. However, the TCF program is a 
state program mandated by the 75th Texas Legislature, through SB 681, and can 
only be changed or repealed by the Texas Legislature. 
EPA commented that the program, as proposed, uses emission reductions achieved 
through the NLEV program to offset the identified shortfall in emission 
reductions resulting from the state's substitute TCF program as compared to the 
FCFF program. EPA further stated that it has recently been determined that the 
NLEV program cannot be used in an area outside of the Ozone Transport Commission 
area to make up an anticipated shortfall in a state's substitute program for the 
Clean Fuel Fleet Program (CFFP). 
EPA also commented that the state, in the event where the NLEV program cannot be 
used, can use specific control programs in its SIP, or which can be incorporated 
into its SIP, to meet the shortfall in emission reductions. The control programs 
can be part of the existing SIP, such as in the state's 15% or 9.0% Rate of 
Progress Plan, as long as the measures are not otherwise required by the FCAA. 
The commission prefers the use of the NLEV program to make up any shortfalls 
resulting from the TCF program. However, in the event that it is EPA's final 
determination that the NLEV program cannot be used, the commission will use the 
emission reductions achieved through the state requirements codified in 30 TAC 
sec.sec.115.352-115.359 and 115.211(a)(1) (respectively concerning fugitive 
emission control in petroleum refining, natural gas/gasoline processing, 
petrochemical processes and VOC transfer operations at gasoline terminals in 
ozone nonattainment areas) to offset any shortfall in emission reductions 
resulting from the state's substitute TCF program as compared to the FCFF 
program. Both of these programs are identified in the state's 15% Rate of 
Progress Plan and go above and beyond the requirements of Reasonably Available 
Control Technology (RACT) and other FCAA requirements. 
Follow-on Fleet Tracking Issues 
Concerning surveying covered fleets, EPA suggested that the state continue to 
survey, register, and track the actual covered fleet aggregation in both state 
and federal program areas. The state should continue to quantify actual baseline 
data and emission reductions, taking into account the differences associated 
with each program, for accurate compliance/enforcement strategy information. 
The commission agrees with this comment, and will continue to survey, register, 
and track the actual fleets in both state and federal program areas. 
Grandfather Issues 
With regards to sec.114.151(g)(1-5), the cities of Plano, Coppell, and Farmers 
Branch commented that all vehicles converted to an acceptable alternative fuel 
in good faith at the time of conversion should be "grandfathered" by the 
proposed legislation. These vehicles should count toward any percentage of fleet 
vehicles mandated to be alternatively fueled or any compliance requirement with 
no time limit. The cities stated that there is a perception that fleets 
continuing vehicle conversions beyond September 1, 1995 are punished by not 
allowing these vehicles to be grandfathered, and that organizations which have 
proactively continued with conversions after September 1, 1995 have not been 
given the appropriate credit for their efforts. HII commented that all vehicles 
converted to compressed natural gas between 1996 and 1998 must undergo 
certification testing at a projected cost of $1,400 per vehicle; that this 
testing is cost prohibitive; and that EPA certification to LEV standards should 
not be applied retroactively to vehicles purchased from 1996 to 1998. 
The September 1, 1995 conversion deadline for vehicles which can be 
grandfathered is a statutory requirement established in SB 681. The TCF program 
allows vehicles converted to any one of the five approved alternative fuels 
(electricity; ethanol, or ethanol/gasoline blends of 85% or greater ethanol; 
liquefied petroleum gas, commonly referred to as propane; methanol or 
methanol/gasoline blends of 85% or greater methanol; or natural gas) prior to 
September 1, 1995 to be counted toward the 10% total fleet vehicle option on 
September 1, 1998. There are no retroactive LEV requirements mandated by the TCF 
program. 
EPA expressed a concern that mass transit non-LEV vehicles (grandfathered 
vehicles) acquired before September 1, 1999, are to be counted toward mass 
transit fleet purchase requirements as part of their 50% of total fleet LEV 
requirement. EPA also expressed a concern that local governments and private 
fleet grandfathered vehicles (non-LEV) can be counted towards the 10% of total 
fleet LEV requirements in 1998. EPA suggested that the state account for and 
track the above differences as compared to the federal program to accurately 
determine and track program equivalency. EPA is concerned that the grandfathered 
vehicles will create an additional emissions shortfall that will hinder the 
state in its equivalency demonstration. 
The commission agrees with this comment and will track grandfathered vehicles. 
MERC Issues/Light Rail Issues 
EPA commented concerning the operation of light rail cars which have no direct 
emissions, but which are eligible for MERCs. EPA is concerned that the inclusion 
of the light rail cars (non-road) would produce MERCs that would not be credited 
under the federal program, and that the state will need to account for their 
MERCs generating differences (i.e., for non-road and RACT) to accurately 
determine and track equivalency between the state and federal programs. 
The commission disagrees with this comment. The state is allowing light rail 
systems to generate MERCs through the direct replacement of diesel powered 
transit buses with electric powered rail systems. These MERCs would be the same 
as those credits generated through a vehicle retirement or scrappage program. 
Definitions (sec.114.1, sec.114.3) 
With regard to sec.114.1, AFRED commented on the commissioners' request to 
consider the option of allowing private law enforcement vehicles to qualify for 
the exemption from the fleet vehicle requirements. AFRED stated that private law 
enforcement vehicles should not be exempt from the fleet vehicle requirements 
unless the vehicles are operated by a private agency under contract with a 
municipality, county, or other political subdivision specifically and solely to 
perform law enforcement duties. 
The commission agrees with this comment and will make no change to the 
definition as proposed. The definition of a law enforcement vehicle will 
continue to refer to any vehicle controlled by a local government and primarily 
operated by a civilian or military law enforcement agency, which is used for the 
purpose of law enforcement activities. 
With regard to sec.114.3, Amoco commented on the deletion of the word "control." 
Amoco requested that the commission retain the word "control" to be consistent 
with the definition of "private entity," which uses the term "control." Amoco 
believes individual facilities that have control of their fleets in an affected 
area should not necessarily be subject to this regulation solely because they 
are a part of a larger organization. Amoco feels this will require a fleet that 
utilizes a centralized purchasing group to participate in the TCF program. 
The commission agrees with the comment that individual facilities have control 
of their fleets in an affected area and should not necessarily be subject to 
this regulation solely because they are a part of a larger organization. Staff 
believes that the definition for control was confusing and limiting, and thus 
deleted it from the rule. Fleets within the same nonattainment area are not 
necessarily subject to the TCF program because they are part of a larger 
organization. Organizations may choose to combine locations and report as one 
fleet or to report each location as an individual fleet dependent upon who has 
final authority to make vehicle purchase decisions. 
Fleet Reporting Requirements (sec.114.155) Concerning sec.114.155(6)(A)-(B), EPA 
commented that the state changed local government and private fleets from annual 
vehicle miles traveled (VMT) reporting to an estimated VMT reporting. Two 
consecutive years averaged will be used for the biennial report. For dual-fueled 
vehicles, an estimation of the percent of VMT or time operated on each fuel is 
reported. Again, two consecutive years averaged will be used for the biennial 
report. Mass transits submit annual reports of VMT or time, but this is only an 
estimate. The state dropped from an annual reporting for fleet operators to 
biennial. EPA is concerned that the estimation of mileage and time operated 
would promote non-compliance from the fleet operators who deliberately 
underestimate mileage and time to keep a fleet vehicle out of the state program.
The commission notes that operators are only required to report VMT for those 
LEVs or grandfathered vehicles they are claiming for compliance with the 
program. The estimation of VMT or time for dual-fueled vehicles is also reported 
for those vehicles used for compliance with the program, and is only collected 
for statistical analysis. VMT or time in the context of reporting requirements 
does not reflect whether the fleet is required to participate in the state's 
program. Therefore, the commission sees no reason for fleet operators to 
underestimate these numbers. 
SIP Section d(1)c)(2)(c). Grandfathering of Vehicles Regarding the section of 
the proposed SIP covering the grandfathering of vehicles, EPA commented that on 
page 15, the last paragraph, second sentence should read, "The EPA addendum to 
Mobile Source Enforcement Memorandum No. 1A...." 
EPA further stated that the commission needs to communicate clearly in the SIP 
and in the state program that the September 4, 1997 addendum to the Mobile 
Source Enforcement Memorandum 1A revised the "reasonable basis" under paragraph 
3 of Memo 1A. The revised policy on what may be relied on as a "reasonable 
basis" by any person, including a manufacturer, installer or operator, when 
converting or causing the conversion of, a motor vehicle or motor vehicle engine 
to operate on an alternative fuel, is limited to one of the three options, 
(C)(1), (2), or (3), listed in the addendum to Memo 1A. Consequently, any future 
installations after September 4, 1997, of an alternative fuel conversion system, 
or the modification of any motor vehicle or motor vehicle engine in compliance 
with Title II of the FCAA to operate exclusively or in part with an alternative 
fuel, or the causing thereof, and not meeting one of the three options, may 
constitute tampering under the FCAA sec.203(a). 
The commission agrees with this comment. The text will be changed to reflect the 
correct title, as well as EPA's recent revision, dated June 1, 1998, which 
provides the most recent policy and guidance for the enforcement of tampering 
prohibitions and conversions of vehicles. 
SIP, Appendix B. Assumptions for Modeling Inputs. Turnover Rate Regarding the 
technical evaluation of the TCF program in Appendix B, EPA commented that the 
state may want to consider a turnover rate of four years instead of three be 
applied equally to the light-duty vehicle calculation for both programs. EPA 
also commented that a four-year turnover rate would harmonize and support the 
modeled 250 ozone day input calculation and the 100,000 miles lifetime emission 
standards for LEVs. 
The commission will consider this change in future equivalency analyses. 
However, the emission reductions achieved through the state controls on fugitive 
emission and VOC transfer operations that are used to make up any shortfalls 
resulting from the TCF program will far exceed the amount of emission reductions 
needed to demonstrate equivalency with the FCFF program even if a four-year 
turnover rate is applied to the light-duty vehicle calculations for both 
programs.
Centralized Refueling Rate 
Regarding the centralized refueling rate in Appendix B, EPA commented that the 
methodology used to calculate the centralized refueling rate (69%) under the 
federal program did not include the portion of the surveyed fleet that could be 
centrally refueled. EPA stated that the 69% is the percentage of fleets surveyed 
that can or could refuel all of their fleet vehicles all of the time in the 
nonattainment area, and that the remaining surveyed fleets have a portion of 
their fleet not capable of 100% centralized refueling and a portion that is or 
could be capable of 100% centralized refueling all of the time. EPA stated that 
the portion of the surveyed fleet that is or could be 100% centralized refueled 
all of the time needs to be included by using a weighted average calculation 
methodology. 
EPA also noted that the state centralized refueling rate of 100% does not 
account for the vehicles exempted from the program by rule (law enforcement and 
emergency vehicles) and fleet vehicles exempted by operating less than 50% of 
its total annual miles or operating time in the affected area. 
Finally, EPA recommended an 80% centralized refueling rate for both the state 
and federal programs in the Houston/Galveston and Dallas/Fort Worth 
nonattainment areas and an 80% centralized refueling rate for both programs in 
the El Paso nonattainment area. 
The commission will consider this change in future equivalency analyses. 
However, the emission reductions achieved through the state controls on fugitive 
emission and VOC transfer operations that are used to make up any shortfalls 
resulting from the TCF program will far exceed the amount of emission reductions 
needed to demonstrate equivalency with the FCFF program even if an 80% 
centralized refueling rate is applied to the light-duty vehicle calculations for 
both programs. 
SIP, Appendix B. Calculation Processes. Emission Reductions Concerning Appendix 
B, page 13, EPA commented on an inconsistency with the second sentence of the 
first paragraph. It states, "The emission reductions are determined in grams per 
mile. ..." In the formula, however, the definition of emission reductions is 
grams per day. In addition, EPA stated that to be consistent with the 
spreadsheet model in calculating the emission reductions, a 250 ozone day factor 
should be included in the formula. 
The commission agrees with this comment regarding inconsistency with the term, 
"grams per mile," and will revise the text for consistency. However, a 250 ozone 
day factor is not required in this formula since the emission reductions "per 
day" are derived from the calculation of VMT "per day." A 250 ozone day factor 
would only be useful if this formula was demonstrating emission reductions "per 
ozone year." 
Concerning Appendix B, page 15, Table E, EPA commented that the estimated 
emission reductions in tons per day needs more meaning and validity, and that 
the table can be more consistent with the spreadsheet model if results were also 
shown in tons per ozone year (250 days). 
The commission understands the concern; however, the spreadsheet model used to 
determine the emission reductions in the equivalency determination only 
calculates emission reductions in tons per day, which is consistent with Table 
E. To illustrate the long-term tons of VOC reduced from the two programs, Table 
E also summarizes the total emissions reduced by the program over the span of 10 
years by multiplying the total tons reduced per day by a 250-day ozone year. The 
text in Table E has been modified to clearly identify the difference between the 
tons per day accumulated reduction total and the long-term (10-year) reduction 
summary. 
STATUTORY AUTHORITY 
The amendments are adopted under the Texas Clean Air Act (TCAA), Texas Health 
and Safety Code, sec.382.017, which provides the commission with the authority 
to adopt rules consistent with the policy and purposes of the TCAA; TCAA, 
sec.382.019, which provides the commission with the authority to adopt rules to 
control and reduce emissions from engines used to propel land vehicles; 
sec.382.133, which provides the commission with the authority to adopt rules 
regarding fuels in Mass Transit Fleet Vehicles; sec.382.134, which provides the 
commission with the authority to adopt rules regarding fuels in local government 
and private fleet vehicles; sec.382.136, which provides the commission with the 
authority to adopt rules regarding exceptions to participation in the clean fuel 
fleet program; sec.382.142, which provides the commission with the authority to 
adopt rules regarding the granting and use of program compliance credits; and 
sec.382.143, which provides the commission with the authority to adopt rules 
regarding the Texas mobile emissions reduction credit program. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on July 31, 1998.
TRD-9812109
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: September 13, 1998
For further information, please call: (512) 239-1970

SUBCHAPTER E.Low Emission Vehicle Fleet Requirements
30 TAC sec.sec.114.150, 114.151, 114.153-114.157
STATUTORY AUTHORITY
The amendments are adopted under the Texas Clean Air Act (TCAA), Texas Health 
and Safety Code, sec.382.017, which provides the Texas Natural Resource 
Conservation Commission (commission) with the authority to adopt rules 
consistent with the policy and purposes of the TCAA; and TCAA, sec.382.019, 
which provides the commission with the authority to adopt rules to control and 
reduce emissions from engines used to propel land vehicles. 
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 July 31, 1998.
TRD-9812110
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: August 20, 1998
Proposal publication date: April 24, 1998
For further information, please call: (512) 239-1970

30 TAC sec.114.152
STATUTORY AUTHORITY 
This repeal is adopted under the Texas Clean Air Act (TCAA), Texas Health and 
Safety Code, sec.382.017, which provides the Texas Natural Resource Conservation 
Commission with the authority to adopt rules consistent with the policy and 
purposes of the TCAA.
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 July 31, 1998.
TRD-9812111
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: August 20, 1998
Proposal publication date: April 24, 1998
For further information, please call: (512) 239-1970

SUBCHAPTER F.Mobile Emission Reduction Credits
Division 2. Mobile Emission Reduction Credits
30 TAC sec.114.201, sec.114.202
STATUTORY AUTHORITY
The amendments are adopted under the Texas Clean Air Act (TCAA), Texas Health 
and Safety Code, sec.382.017, which provides the Texas Natural Resource 
Conservation Commission (commission) with the authority to adopt rules 
consistent with the policy and purposes of the TCAA; and TCAA, sec.382.019, 
which provides the commission with the authority to adopt rules to control and 
reduce emissions from engines used to propel land vehicles. 
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 July 31, 1998.
TRD-9812112
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: August 20, 1998
Proposal publication date: April 24, 1998
For further information, please call: (512) 239-1970

SUBCHAPTER F.Vehicle Retirement and Mobile Emission Reduction Credits
30 TAC sec.114.200
The commission adopts the repeal of sec.114.200, concerning the Accelerated 
Vehicle Retirement (AVR or vehicle scrappage) Program without changes to the 
proposal as published in the March 20, 1998 issue of the Texas Register (23 
TexReg 2952). 
EXPLANATION OF REPEALED RULE
This repeal is part of the regulatory reform effort. Regulatory reform projects 
identify rules and regulations which need clarification for the benefit of the 
public; are outdated; impose regulatory requirements in excess of their 
contribution to the commission's mission; or are duplicated, unnecessary, or 
inconsistent. This rule is inconsistent with the current Inspection/Maintenance 
(I/M) program, which lacks a loaded mode I/M 240 test. Additionally, this rule 
is currently not being used by the agency and is not required by state or 
federal law. 
The commission supports and will continue to work closely with local areas in 
developing scrappage programs as potential emission reduction strategies to 
assist them in moving towards attainment. 
The repeal further allows flexibility for local areas to create their own 
vehicle scrappage programs based on future guidance from the agency. 
FINAL REGULATORY IMPACT ANALYSIS
The commission has reviewed the rule repeal in light of the regulatory analysis 
requirements of Texas Government Code, sec.2001.0225, and has determined that 
the rule repeal is not subject to sec.2001.0225 because it does not meet the 
definition of a "major environmental rule" as defined in the act, and it does 
not meet any of the four applicability requirements listed in sec.2001.0225(a). 
There was no public comment on the Regulatory Impact Analysis.
TAKINGS IMPACT ASSESSMENT
The commission has prepared a Takings Impact Assessment for this repeal under 
Texas Government Code, sec.2007.043. Promulgation and enforcement of this rule 
repeal will not affect private real property. 
COASTAL MANAGEMENT PLAN
The commission has determined that the rule repeal relates to an action or 
actions subject to the Texas Coastal Management Program (CMP) in accordance with 
the Coastal Coordination Act of 1991, as amended (Texas Natural Resource Code, 
sec.sec.33.201 et. seq.), and the commission's rules in 30 TAC Chapter 281, 
Subchapter B, concerning Consistency with the CMP. As required by 31 TAC 
sec.505.11(b)(2) and 30 TAC sec.281.45(a)(3), relating to actions and rules 
subject to the CMP, commission rules governing air pollutant emissions must be 
consistent with the applicable goals and policies of the CMP. The commission has 
reviewed this action for consistency with the CMP goals and policies in 
accordance with the rules of the Coastal Coordination Council and has determined 
that the action is consistent with the applicable CMP goals and policies. The 
CMP policy applicable to this rule repeal 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 
repeal does not change existing requirements which already comply with 
regulations at 40 CFR and is therefore consistent with this policy. 
PUBLIC HEARING AND COMMENTERS
A public hearing was held on April 14, 1998 in Austin to consider the scrappage 
rule revocation. Oral comments were received from the Harris County Auto 
Recyclers Association and the Houston-Galveston Area Council (H-GAC). Written 
comments on the rule repeal were received by the City of Austin; North Central 
Texas Council of Governments (NCTCOG) and the United States Environmental 
Protection Agency (EPA). 
Scrappage Rule Repeal
All of the comments received indicate a desire to have scrappage programs 
available as a means to reduce air pollution. NCTCOG, H-GAC and the Harris 
County Auto Recyclers Association commented that they want a revised state 
scrappage rule. 
Commission staff is still assessing whether or not guidance or a new scrappage 
rule will be issued. A rule may have to be developed in order to trade mobile 
emission reduction credits and for the EPA to deem credible emission reduction 
credits in a State Implementation Plan. The commission is in the process of 
conducting dialogue with staff members and stakeholders from outside the agency, 
which will facilitate discussions on the issue of vehicle scrappage, including 
the possible need for a rule. 
Perception of the Scrappage Rule Revocation
NCTCOG and the H-GAC expressed concern that the public will perceive the 
withdrawal of the scrappage rule as the commission being unsupportive of 
scrappage programs. 
The repeal of the scrappage rule is needed due to the fact that measurements of 
emission reductions were based on unavailable I/M 240 technology. The 
Commissioners have publicly stated their support for the development of local 
vehicle scrappage programs. 
Effectiveness of a Scrappage Program
The City of Austin and the H-GAC explicitly stated that they believe a scrappage 
program would be a cost-effective way to reduce vehicle emissions. Analysis by 
the commission indicates that scrappage programs have the potential to be cost-
effective, as long as program criteria are carefully defined. The commission 
recognizes that successful scrappage programs have been conducted in other 
states and is in the process of researching and analyzing these programs.
Environmental Justice Issues
EPA stated that an awareness of environmental justice issues is necessary while 
developing vehicle scrappage programs. H-GAC and the Harris County Auto 
Recyclers Association commented that environmental justice complaints against 
scrappage programs are misdirected, and that emission reductions from scrappage 
programs have beneficial results for all regions of the nonattainment area. The 
commission is aware of environmental justice complaints against a scrappage 
program in California, and that similar protests could result in Texas. However, 
the commission believes that local scrappage programs can be developed in a way 
so that pollution emissions do not disproportionately affect minority and low 
income communities. 
STATUTORY AUTHORITY
The repeal is adopted under the Texas Clean Air Act, Texas Health and Safety 
Code sec.382.017. The repeal authority is also authorized under Texas Water Code 
sec.5.103, and Texas Health and Safety Code, sec.382.017. Section 5.103 requires 
the commission to adopt rules any time it is repealing any agency statement of 
general applicability that describes its procedure or practice requirements. 
Section 382.017 provides the commission with the authority to adopt rules. 
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 July 31, 1998.
TRD-9812108
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: August 20, 1998
Proposal publication date: March 20, 1998
For further information, please call: (512) 239-1970

TITLE 31. NATURAL RESOURCES AND CONSERVATION
PART II. Texas Parks and Wildlife Department
CHAPTER 53. Finance
SUBCHAPTER A. License Fees and Boat and Motor Fees
31 TAC sec.53.8
The Texas Parks and Wildlife Commission adopts an amendment to sec.53.8, 
concerning fees schedules, without changes to the proposed text as published in 
the March 13, 1998, issue of the Texas Register (23 TexReg 2725). 
The amendment is necessary to implement the fee for the newly created 
nonresident raptor trapping permit.
The amendment will function to establish a fee for the nonresidents raptor 
trapper's permit. 
One commenter opposed adoption of the proposed rules, stating that aplomado and 
peregrine falcon populations would be harmed. The department disagrees with the 
comment and responds that the rule establishes a fee, as opposed to authorizing 
any activity. No changes were made as a result of the comment. 
The amendment is adopted under Parks and Wildlife Code, sec.49.014, which 
provides the commission with authority to establish a fee for the nonresident 
trapping permit. 
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 July 31, 1998.
TRD-9812129
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: March 13, 1998
For further information, please call: (512) 389-4775

SUBCHAPTER I. Additional Wildlife Permits
31 TAC sec.53.80
The Texas Parks and Wildlife Commission adopts new sec.53.80, concerning 
Miscellaneous Wildlife Licenses and Permits, without changes to the proposed 
text as published in the May 13, 1998, issue of the Texas Register (23 TexReg 
4214).
The new section is necessary to set the fees for application and renewal of deer 
management permits, commercial nongame collector's permits, and commercial 
nongame dealer's permits. 
The new section will function to establish fees for deer management permits, 
commercial nongame collector's permits, and commercial nongame dealer's permits.
The department received four comments opposing adoption of the proposed rule. 
Two commenters stated that the proposed fees for deer management permits were 
too high. The department disagrees with the comments and responds that the fees 
are set within the parameters established by the legislature. No changes were 
made as a result of the comment. Two commenters stated that the fees for deer 
management permits were too low. The department disagrees with the comments and 
responds that the legislature mandated a fee of no more than $1,000; therefore, 
the fee is established at the maximum value allowed by law. No changes were made 
as a result of the comment. Twelve commenters stated that the proposed nongame 
permit fees were too high. The department disagrees with the comments and 
responds that the fees are necessary to pay for the cost of administering the 
program. No changes were made as a result of the comment. One commenter stated 
that it was unfair to charge nonresidents more than residents for a nongame 
permit. The department disagrees and responds that this is the case with all 
other licenses and permits in this state, as well as in every other state. No 
changes were made as a result of the comment. 
The new section is adopted under Parks and Wildlife Code, Chapter 43, Subchapter 
R, as enacted by the passage of House Bill 2542, 75th Texas Legislature, Regular 
Session, 1997, which provides the commission with authority to establish a 
permit and fees for the management of wild white-tailed deer, and Chapter 67, 
which authorizes the commission to establish a fee for permits issued pursuant 
to Chapter 67. 
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 July 31, 1998.
TRD-9812130
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: May 1, 1998
For further information, please call: (512) 389-4775

CHAPTER 65. Wildlife
SUBCHAPTER A. Statewide Hunting and Fishing Proclamation
Division 1. General Provisions
31 TAC sec.sec.65.3, 65.9-65.11, 65.24, 65.28, 65.30, 65.31
The Texas Parks and Wildlife Commission adopts the repeal of sec.sec.65.33, 
65.50, and 65.52, amendments to sec.sec.65.3, 65.9-65.11, 65.24, 65.28, 65.31, 
65.42, 65.46, 65.54, 65.71, and 65.72; and new sec.65.30, concerning the 
Statewide Hunting and Fishing Proclamation. Sections 65.3, 65.10, 65.11, 65.24, 
and 65.42 are adopted with changes to the proposed text as published in the 
March 13, 1998, issue of the Texas Register (23 TexReg 2733). The repeal of 
sec.sec.65.33, 65.50, and 65.52; the amendments to sec.sec.65.9, 65.28, 65.31, 
65.46, 65.54, 65.71, and 65.72; and new 65.30 are adopted without changes to the 
proposed text and will not be republished. Section 65.26, concerning Managed 
Lands Deer (MLD) Permits, was withdrawn and reproposed as new sec.65.26 in the 
May 1, 1998, issue of the Texas Register (23 TexReg 4215). 
The change to 65.3, concerning Definitions, removes the definition of 'antler 
point,' a definition rendered superfluous by the adoption of sec.65.42, 
concerning Deer, which did not include a proposed special requirement for the 
take of buck deer in Austin, Colorado, Fayette, and Lavaca counties; replaces 
the word 'handicap' with the word 'disability;' and removes the definition of 
'final destination for all wildlife resources,' which is defined in Parks and 
Wildlife Code, Chapter 42. 
The change to sec.65.10, concerning Possession of Wildlife Resources, makes non-
substantive clarifications to: make clear that separate documentation 
requirements exist for all game species other than deer, antelope, and turkey; 
that documentation requirements for turkey differ depending on the bag 
composition established for a given county; and restructure the section for ease 
of interpretation.
The change to sec.65.11, concerning Lawful means, replaces an itemized list of 
archery equipment with the phrase 'lawful archery equipment.' 
The change to sec.65.24, concerning Permits, makes a non-substantive 
clarification to make clear that certain species of wildlife must be accompanied 
by the permit allowing their take until the resource reaches the possessor's 
permanent residence or a cold storage/processing facility. 
The change to sec.65.42, concerning Deer: alters subsection (b)(4)(G)(iii) to 
precisely state when antlerless deer may be taken without an antlerless deer 
permit; removes the proposed special requirement in subsection (b)(4)(H) for the 
take of buck deer; and modifies subsection (b)(9) by adding a provision to 
conform the youth-only season in Nacogdoches, Panola, Sabine, San Augustine, and 
Shelby counties to that established for the rest of the state. 
Generally, the repeals, amendments and new section are necessary to the 
discharge of the Department's statutory obligations under the Parks and Wildlife 
Code and to the execution of Commission policies authorized by the Code.
The adoption of sec.65.3, concerning Definitions, is necessary to clearly 
establish the meanings of words and terms used in the regulations, thereby 
preventing ambiguities in determining the intent of the Commission. The adoption 
of sec.65.9, concerning Open Seasons: General Rules, is necessary to remove 
provisions redundant of statute and to make clear that an antlerless deer permit 
is required for the take as well as possession of antlerless deer. The adoption 
of sec.65.10, concerning Possession of Wildlife Resources, is necessary to 
comport the section with sec.65.3, concerning Definitions, by: removing the term 
'final destination,' which is not defined in statute; replacing the term 'fully 
processed' with the term 'finally processed,' which is statutorily defined; and 
to implement the intent of the Commission with respect to establishing 
documentation requirements for various species of game animals. The adoption of 
sec.65.11, concerning Lawful Means, is necessary, generally, to regulate the 
means, methods, and manners for the take or possession of wildlife resources, 
and, specifically, to: remove a reference to fish, because the provisions of 
sec.65.72, concerning Fish, precisely articulate the lawful means and methods 
for the take and possession of game fish; remove elk and aoudad from the 
applicability of the section, as the Legislature has removed elk and aoudad from 
the list of game animals the Commission is authorized to regulate; state in a 
single regulation the restrictions applicable to lawful methods during the 
archery-only season, rather than applying the same language multiple times 
elsewhere in the regulations governing archery-only seasons in individual 
counties; replace the word 'handicap' with the word 'disability,' in order to 
track language requiring medical certification of an upper-limb disability; 
remove provisions for seasons and bag limits related to falconry, as those 
provisions are now and more appropriately part of the Raptor Proclamation; and 
provide, with an exception, restrictions on the use of motor vehicles to aid in 
the hunting of desert bighorn sheep, as the Commission desires a conservative 
harvest while restoring populations of that species in this state. The adoption 
of sec.65.24, concerning Permits, adds desert bighorn sheep and removes elk from 
the applicability of the section, because the Commission has authorized the 
hunting of desert bighorn sheep on private lands and elk is no longer a game 
species. The adoption of sec.65.28, concerning Landowner Assisted Management 
Permit System (LAMPS), is necessary to locate in a single instance of regulatory 
language a universal requirement for the tagging of deer with LAMPS permits, 
rather than reproduce the language multiple times elsewhere in regulations 
governing the take of deer in individual counties. The adoption of sec.65.30 is 
necessary to create special tagging requirements for desert bighorn sheep in 
order to gather precise biological data for use in the department's ongoing 
program to reintroduce that species in the state. The adoption of sec.65.31, 
concerning Antlerless Mule Deer Permits, is necessary to clarify the 
Commission's intent that the take of antlerless mule deer without a permit be 
confined to counties where the bag composition during the archery-only season is 
designated as either-sex, which prevents the biologically undesirable 
possibility of unrestricted take of antlerless mule deer in counties where the 
bag composition is not designated as either-sex. The adoption of sec.65.42, 
concerning Deer, is necessary to, on the basis of sound biological management 
practices and required findings of fact, establish the places and periods of 
time when deer may be legally taken or possessed, and special provisions for the 
lawful take of deer in specific counties. The adoption of sec.65.46, concerning 
Squirrel: Open Seasons, Bag and Possession Limits, is necessary to, on the basis 
of sound biological management practices and required findings of fact, 
establish the lawful seasons, bag limits, and possession limits for the take and 
possession of squirrel in specific counties. The adoption of sec.65.71, 
concerning Reservoir Boundaries, is necessary in order to precisely delineate 
those inland waters to which apply the various provisions of sec.65.72, 
concerning Fish. The adoption of sec.65.72, concerning Fish, is necessary to 
implement the Commission's policy of comporting state regulations governing the 
take of saltwater game fish with regulations promulgated by the federal 
government for the take of saltwater fish in federal waters. 
The amendment to sec.65.3, concerning Definitions, will function by defining 
lawful archery equipment and upper-limb disability; and by numbering the 
definitions to conform with the style sheet of the Texas Register. The amendment 
to sec.65.9, concerning Open Seasons: General Rules, will function by 
eliminating subsection (d), which conflicts with provisions of the Parks and 
Wildlife Code, eliminating provisions made redundant by the passage of House 
Bill 2542, Acts of the 75th Texas Legislature, and setting forth permit 
requirements for the take of antlerless deer during the archery-only season. The 
amendment to sec.65.10, concerning Possession of Wildlife Resources, will 
function by standardizing regulatory language to comport with the definitions 
contained sec.65.3, concerning Definitions; and by providing for documentation 
requirements for various species of game animals. The amendment to sec.65.11, 
concerning Lawful Means, will function by removing elk and aoudad from the 
applicability of the section; specifying the lawful means during the archery-
only season; deleting provisions applicable to falconry that have been moved to 
another subchapter; and prohibiting, with an exception, the use of motorized 
conveyances to aid in the hunting of desert bighorn sheep. The amendment to 
sec.65.24, concerning Permits, will function by adding desert bighorn sheep to 
the list of game animals to which the provisions of the section apply. The 
amendment to sec.65.28, concerning Landowner Assisted Management Permit System 
(LAMPS), will function by iterating that all tagging requirements imposed as a 
condition of license privilege still apply. New sec.65.30, concerning Desert 
Bighorn Sheep Permits, will function by specifying administrative requirements 
for persons hunting desert bighorn sheep. The amendment to sec.65.31, concerning 
Antlerless Mule Deer Permits, will function by confining either-sex harvest of 
mule deer during the archery-only season to counties with an established either-
sex bag composition. The amendment to sec.65.42, concerning Deer, will function 
by: eliminating the LAMPS program in eight counties along the upper-central Gulf 
coast; initiating a 16-day white-tailed deer season in two Panhandle counties; 
doubling the number of doe days in five deep East Texas counties and moving the 
doe day period from the beginning of the season to either side of Thanksgiving; 
allowing spike bucks to be taken during the special-late and muzzleloader 
seasons; increasing the bag limit in 11 East Texas counties that formerly had a 
'swing' tag; opening a mule deer season in a portion of Andrews County; and 
establishing a uniform, statewide regulation for activities conducted during the 
special youth-only season. The amendment to sec.65.46, concerning Squirrel, will 
function by lengthening the season in 51 counties in East Texas. The amendment 
to sec.65.54, concerning Game Birds; Open Seasons and Bag Limits, will function 
by establishing general provisions for the take of game birds and by referring 
to provisions for hunting by means of falconry that are contained in the Raptor 
Proclamation. The amendment to sec.65.71, concerning Reservoir Boundaries, will 
function by precisely defining the boundaries of inland waters subject to the 
provisions of sec.65.72, concerning Fish. The amendment to sec.65.72, concerning 
Fish, will function by: making crossbows a lawful means for taking nongame fish; 
eliminating the minimum length limits for largemouth bass on Lakes Ray Roberts 
and Madisonville in favor of slot limits; modifying slot limits for largemouth 
bass on Lakes Fork and Monticello; correcting an inaccurate reference to a 
roadway serving as a regulatory boundary below Lake Livingston; implementing 
special bag requirements for hybrid striped bass and white bass on Lake Pat 
Mayse and Lake O'the Pines; implementing new bag restrictions for catfish on 
Tankersley Reservoir; clarifying that hair or feathers may be lawfully used on 
flies for use in certain parts of the Guadalupe River; implementing a 
prohibition on juglines, throwlines, and trotlines on Tankersley Reservoir; 
placing Bell Street Lake under the provisions applicable to community fishing 
lakes; and implementing new size limits for vermilion snapper. 
The department received 97 comments in favor of adoption of the proposed rules. 
Seventy-six commenters opposed the proposed special provisions for the take of 
buck deer in Austin, Fayette, Colorado, and Lavaca counties. The department 
agrees with the commenters and the special provision was not adopted. Four 
comments in favor of adoption were received. 
Seventy-one commenters opposed the proposed mule deer season in a portion of 
Andrews County. The Department disagrees with the comments, and responds that 
the policy of the Commission is to provide hunting opportunity wherever it is 
biologically justifiable. No changes were made as a result of the comments. 
Twenty-six persons commented in favor of adoption. 
The Department received 122 comments opposed to the bag limit for antlerless 
deer in Jim Hogg, Duval, and Brooks counties. All the commenters requested a 
reduced harvest of antlerless deer in those counties. The department disagrees 
with the commenters, responding that the biological data gathered in those 
counties does not indicate that such a reduction is called for; however, the 
department will investigate further. No changes were made as a result of the 
comments. 
Twenty-one commenters opposed the proposed opening date for white-tailed deer in 
the northern half of the state, preferring a later date. The department 
disagrees with the comments and responds that opening dates for deer season are 
optimized, based on scientific studies of the breeding habits of deer; however, 
the Department will study the issue to determine if a later opening date is 
biologically justifiable. No changes were made as a result of the comments. 
Eleven commenters opposed the one-buck aggregate bag limit and requested that 
hunters be allowed to take a buck in more than one one-buck county. The 
department must at this time disagree with the commenters, responding that bag 
limits in one-buck counties are conservative because of high hunting pressure 
and elevated harvest of bucks in lower age classes. However, the department is 
conducting investigations to ascertain if higher buck harvest may be safely 
allowed in some counties. No changes were made as a result of the comments. 
Three commenters opposed the proposed 'doe days' for East Texas counties and 
requested more 'doe days.' Because the comments did not address specific 
counties, the Department must disagree if the commenters were referring to any 
county other than Nacogdoches, Panola, Sabine, San Augustine, or Shelby 
counties, responding that 'doe days' are established on the basis of biological 
data. If this is the case, no changes were made as a result of the comment. If 
the commenters were referring to the counties mentioned previously in this 
response, the department agrees with the comments, as the number of 'doe days' 
are being increased in those counties. One comment in favor of adoption of the 
proposal was received. 
One commenter requested that turkey-hunting by rifle be eliminated for safety 
reasons. The department disagrees with the comment and responds that it does not 
have the statutory authority for such a prohibition on the basis of safety. 
The department received 14 comments opposing the proposed rules for deer harvest 
in various parts of the state. The commenters individually requested, 
respectively: antlerless-only harvest in Sabine County; antlerless harvest in 
San Augustine County by permit only; a shorter season in Harrison County; a 
closed season in Bastrop and Travis counties; 'South Texas'-style regulations 
for Val Verde County north of U.S. Highway 90; a two-buck bag limit for the 
northern Pineywoods; a one-buck, one-antlerless bag limit for all of East Texas; 
a 'swing-tag' for all counties with a one-buck bag limit; an additional buck 
during the archery-only season; a 'split' deer season; a statewide muzzleloader 
season; a muzzleloader season both before and after the general season; separate 
bag limits for archery and gun seasons; creation of a license tag for 'long-
horned' spike bucks; a later opening for spring turkey season. The department 
disagrees with the comments, responding that no biological justification exists 
for any of the requested changes. No changes were made as the result of the 
comments.
Two commenters requested that the department prohibit for safety reasons the use 
of devices that allow lawful archery equipment to be kept at full or partial 
draw. The department disagrees with the commenters and responds that the 
Commission does not have the statutory authority to make such changes on the 
basis of safety. No changes were made as a result of the comments. 
One commenter opposed the hunting of desert bighorn sheep, hunting at night, and 
the use of silencers or sound-suppressing devices while hunting. The department 
disagrees with the commenter with respect to desert bighorn sheep, responding 
that the species is designated by statute as a game animal and that the 
Commission enjoys full statutory authority to regulate, consistent with sound 
biological management practices, the hunting of desert bighorn sheep. The 
department agrees with the commenter with respect to the additional comments, 
and responds that night-hunting of game animals is prohibited by statute and the 
use of silencers or sound-suppressing devices in the hunting of game animals is 
prohibited by this subchapter. No changes were made as a result of the comments. 
The department received four comments opposing the proposed regulation changes 
for bass on Lake Fork. The comments addressed various aspects of the slot limit 
from leaving the current regulation in place to removing the slot all together. 
The department disagrees with the comments and responds that the proposal 
balances the need of increased protection of the trophy bass population and 
desires of anglers and local businesses. No changes were made as a result of the 
comments. Twenty-seven persons commented in favor of the proposed rule. 
The department received two comments opposing the proposed regulations 
concerning Lake Ray Roberts. One commenter opposed the 24-inch upper limit and 
the other commenter requested phasing-in the increase to 24 inches. The 
department disagrees with the comments and responds that the 24-inch limit is 
needed to effectively increase the number of larger bass in Ray Roberts and that 
other limits would reduce the opportunity for improvement. No changes were made 
as a result of the comments. Thirteen comments were received in favor of the 
proposed rule. 
The department received one comment opposing the proposed rule concerning white 
bass and hybrid striped bass. The commenter felt that anglers should be required 
to properly identify any fish caught. The department disagrees with the 
commenter and responds that the rule is in response to difficulties in 
identification and will be evaluated to determine if problems with 
identification abate because of it. No changes were made as a result of the 
comments. 
One commenter requested that the restricted area below the Lake Livingston dam 
be closed to angling. The department disagrees with the commenter and responds 
that ongoing evaluations of existing regulations are being conducted, and that 
any further recommendations for this area will be based on those evaluations. No 
changes were made as a result of the comment. 
One commenter opposed the 18-inch minimum limit for blue catfish on E.V. Spence 
and Fort Phantom Hill Reservoir. The department disagrees with the commenter and 
responds that the limit is part of a research study and is under evaluation. No 
changes were made as a result of the comment. 
One commenter requested that the harvest of fish by fishing guides be 
restricted. The department disagrees with the commenter and responds that there 
is no data to suggest that harvest by fishing guides is a resource issue. No 
changes were made as a result of the comment. 
One commenter requested a ban upon the use of live bait for game fish. The 
department disagrees with the commenter and responds that there is no data that 
would support the implementation of such a regulation. No changes were made as a 
result of the comment. 
One commenter requested that the department consider some sort of slot-length 
limit for largemouth bass on Sam Rayburn and Richland-Chambers Reservoirs. The 
department disagrees with the comment and responds that angling quality on these 
reservoirs is excellent under current regulations. No changes were made as a 
result of the comment. 
The Texas Wildlife Association, Sportsmen Conservationists of Texas, and the 
Lake Ray Roberts Sportsmen's Association commented in favor of the proposed 
rules. 
The amendment and new section are adopted under the authority of Parks and 
Wildlife Code, Chapter 61, Uniform Wildlife Regulatory Act (Wildlife 
Conservation Act of 1983), and Chapter 67, which provide the Commission with 
authority to establish wildlife resource regulations for this state. 

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

sec.65.10. Possession of Wildlife Resources. 
(a) For all wildlife resources taken for personal consumption and for which 
there is a possession limit, the possession limit shall not apply after the 
wildlife resource has reached the possessor's permanent residence and is finally 
processed. 
(b) Proof of sex must remain with certain wildlife resources until the wildlife 
resource reaches either the possessor's permanent residence or a cold 
storage/processing facility and is finally processed, as follows: 
(1) turkey taken in other than an either-sex county or taken during any spring 
turkey season: the beard must remain attached to the bird. 
(2) deer: 
(A) buck: the unskinned head, with antlers still attached; 
(B) antlerless: the unskinned head; 
(3) antelope: the unskinned head; and 
(4) pheasant: one foot or the entire plumage attached to the bird. 
(c) In lieu of proof of sex, the person who killed the wildlife resource may 
obtain a receipt from a taxidermist or a signed statement from the landowner, 
containing the following information: 
(1) the name of person who killed the wildlife resource; 
(2) the date the wildlife resource was killed; 
(3) one of the following, as applicable: 
(A) whether the deer was antlered or antlerless; 
(B) the sex of the antelope; 
(C) the sex of the turkey and whether a beard was attached; or 
(D) the sex of the pheasant. 
(d) A person may give, leave, receive, or possess any species of legally taken 
wildlife resource, or a part of the resource, that is required to have a tag or 
permit attached or is protected by a bag or possession limit, if the wildlife 
resource is accompanied by a wildlife resource document from the person who 
killed or caught the wildlife resource. For deer, turkey, or antelope, a 
properly executed wildlife resource document shall accompany the wildlife 
resource until it reaches either the possessor's permanent residence or a cold 
storage/processing facility and is finally processed. For all other wildlife 
resources, a properly executed wildlife resource document shall accompany the 
wildlife resource until it reaches the possessor's permanent residence and is 
finally processed. The document must contain the following information:
(1) the name, signature, address, and hunting or fishing license number, as 
required, of the person who killed or caught the wildlife resource; 
(2) the name of the person receiving the wildlife resource; 
(3) a description of the wildlife resource (number and type of species or 
parts); 
(4) the date the wildlife resource was killed or caught; and 
(5) the location where the wildlife resource was killed or caught (name of 
ranch; area; lake, bay or stream; and county). 
(e) It is a defense to prosecution if the person receiving the wildlife resource 
does not exceed any possession limit or possess a wildlife resource or a part of 
a wildlife resource that is required to be tagged if the wildlife resource or 
part of the wildlife resource is tagged. 

sec.65.11. Lawful Means. 
It is unlawful to hunt any of the wildlife resources of this state except by the 
means authorized by this section and as provided in sec.65.19 of this title 
(relating to Hunting Deer with Dogs). 
(1) Firearms. 
(A) It is lawful to hunt game animals and game birds with any legal firearm, 
including muzzleloading weapons, except as specifically restricted in this 
section. 
(B) (No change.) 
(C) It is unlawful to use rimfire ammunition to hunt deer, antelope, or desert 
bighorn sheep. 
(D) (No change.) 
(2) Archery. 
(A)-(D) (No change.) 
(E) Special archery-only seasons are restricted to lawful archery equipment 
only, except as provided in paragraph (3) of this section. 
(3) Crossbow. Crossbows are lawful during any general open season except Eastern 
turkey seasons. A person having an upper-limb disability may use a crossbow to 
hunt deer and turkey during an archery-only season, provided the person has in 
their immediate possession a physician's statement certifying the extent of the 
disability. When hunting turkey and all game animals other than squirrels by 
means of crossbow: 
(A)-(D) (No change.) 
(4) Falconry. It is lawful to hunt any game bird or game animal by means of 
falconry under the provisions of Subchapter K of this chapter (relating to 
Raptor Proclamation). 
(5) Special Provision. Except as provided in this paragraph, no motorized 
conveyance of any type shall be used to locate, herd, harass, or hunt desert 
bighorn sheep. Any person who qualifies for handicapped parking privileges under 
Transportation Code, Chapter 681 may possess a loaded firearm in or on a motor 
vehicle while hunting desert bighorn sheep and may hunt desert bighorn sheep 
from a motor vehicle, provided the motor vehicle is not in motion and the engine 
is not running. 

sec.65.24. Permits. 
(a) (No change.) 
(b) No person may hunt white-tailed deer, mule deer, desert bighorn sheep, or 
antelope when permits are required unless that person has received from the 
landowner and has in possession a valid permit issued by the department. 
(c)-(d) (No change.)
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 July 31, 1998.
TRD-9812131
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: March 13, 1998
For further information, please call: (512) 389-4775

31 TAC sec.65.33
The repeal is adopted under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
Commission with authority to establish wildlife resource regulations for this 
state. 
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 July 31, 1998.
TRD-9812132
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: March 13, 1998
For further information, please call: (512) 389-4775

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

sec.65.42. Deer. 
(a) (No change.) 
(b) White-tailed deer. The open seasons and annual bag limits for white-tailed 
deer shall be as follows. 
(1) (No change.) 
(2) In Aransas, Atascosa, Bee, Calhoun, Cameron, Hidalgo, Live Oak, Nueces, 
Refugio, San Patricio, Starr, and Willacy counties, there is a general open 
season. 
(A)-(B) (No change.) 
(C) Special Late General Season. In the counties listed in this paragraph there 
is a special late general season for the take of antlerless and spike-buck deer 
only. 
(i) (No change.) 
(ii) Bag limit: four antlerless or spike-buck deer in the aggregate, no more 
than two of which may be spike bucks. 
(3) In Brooks, Dimmit, Duval, Frio, Jim Hogg, Jim Wells, Kenedy, Kinney (south 
of U.S. Highway 90), Kleberg, LaSalle, Maverick, McMullen, Medina (south of U.S. 
Highway 90), Uvalde (south of U.S. Highway 90), Val Verde (that southeastern 
portion located both south of U.S. Highway 90 and east of Spur 239), Webb, 
Zapata, and Zavala counties, there is a general open season. 
(A)-(B) (No change.) 
(C) Special Late General Season. In the counties listed in this paragraph there 
is a special late general season for the take of antlerless and spike-buck deer 
only. 
(i) (No change.) 
(ii) Bag limit: five antlerless or spike-buck deer in the aggregate, no more 
than three of which may be spike bucks. 
(4) No person may take or attempt to take more than one buck deer per license 
year from the counties, in the aggregate, listed within this paragraph, except 
as authorized under the provisions of sec.65.26 of this title (relating to 
Managed Land Deer Permits). 
(A) (No change.) 
(B) In Brazoria, Fort Bend, Goliad (south of U.S. Highway 59), Harris, Jackson 
(south of U.S. Highway 59), Matagorda, Victoria (south of U.S. Highway 59), and 
Wharton (south of U.S. Highway 59) counties, there is a general open season. 
(i)-(ii) (No change.) 
(iii) During the first 23 days of the general season, antlerless deer may be 
taken without antlerless deer permits unless MLD permits have been issued for 
the tract of land. If MLD permits have been issued, they must be attached to all 
antlerless deer harvested on the tract of land. After the first 23 days, 
antlerless deer may be taken only by MLD antlerless permits.
(C)-(E) (No change.) 
(F) In Dallam, Hartley, Moore, Oldham, Potter, and Sherman counties, there is a 
general open season. 
(i)-(iii) (No change.) 
(G) In Nacogdoches, Panola, Sabine, San Augustine and Shelby counties, there is 
a general open season. 
(i)-(ii) (No change.) 
(iii) From Thanksgiving Day through the Sunday immediately following 
Thanksgiving Day, antlerless deer may be taken without antlerless deer permits 
unless MLD or LAMPS permits have been issued for the tract of land. If MLD or 
LAMPS permits have been issued, they must be attached to all antlerless deer 
harvested on the tract of land. From the first Saturday in November through the 
day before Thanksgiving Day, and from the Monday immediately following 
Thanksgiving Day through the first Sunday in January, antlerless deer may be 
taken only by MLD antlerless deer permits or LAMPS permits. On National Forest, 
Corps of Engineers, Sabine River Authority and Trinity River Authority lands, 
antlerless deer may be taken only by MLD antlerless permits. 
(H) In Austin, Bastrop, Bell (east of Interstate 35), Caldwell, Colorado, Comal 
(east of Interstate 35), Crane, DeWitt, Ector, Ellis, Falls, Fannin, Fayette, 
Goliad (north of U.S. Highway 59), Gonzales, Guadalupe, Hays (east of Interstate 
35), Hunt, Jackson (north of U.S. Highway 59), Karnes, Kaufman, Lavaca, Lee, 
Loving, Midland, Milam, Rains, Travis (east of Interstate 35), Upton (that 
portion located north of U.S. Highway 67; and that area located both south of 
U.S. Highway 67 and west of state highway 349), Victoria (north of U.S. Highway 
59), Waller, Ward, Washington, Wharton (north of U.S. Highway 59), Williamson 
(east of Interstate 35), and Wilson counties, there is a general open season. 
(i)-(iii) (No change.) 
(5) In Angelina, Chambers, Hardin, Jasper, Jefferson, Liberty, Montgomery, 
Newton, Orange, Polk, and Tyler counties, there is a general open season. 
(A) (No change.) 
(B) Bag limit: four deer, no more than two bucks and no more than two 
antlerless. 
(C) (No change.) 
(6) In Andrews, Bailey, Castro, Cochran, Collin, Dallas, Dawson, Deaf Smith, El 
Paso, Gaines, Galveston, Grayson (except on the Hagerman National Wildlife 
Refuge), Hale, Hockley, Hudspeth, Lamb, Lubbock, Lynn, Martin, Parmer, Rockwall, 
Terry, Winkler, and Yoakum counties, there is no general open season. 
(7) (No change.) 
(8) Muzzleloader-only open seasons, and bag and possession limits shall be as 
follows. 
(A) In Bandera, Bexar, Blanco, Brewster, Brown, Burnet, Coke, Coleman, Comal 
(west of Interstate 35), Concho, Crockett, Culberson, Edwards, Gillespie, 
Glasscock, Hays (west of Interstate 35), Howard, Irion, Jeff Davis, Kendall, 
Kerr, Kimble, Kinney (north of U.S. Highway 90), Llano, Mason, Medina (north of 
U.S. Highway 90), Menard, McCulloch, Mills, Mitchell, Nolan, Pecos, Presidio, 
Reagan, Real, Reeves, Runnels, San Saba, Schleicher, Sterling, Sutton, Terrell, 
Tom Green, Travis (west of Interstate 35), Upton (that portion located both 
south of U.S. Highway 67 and east of state highway 349), Uvalde (north of U.S. 
Highway 90), and Val Verde (north of U.S. Highway 90; and that portion located 
both south of U.S. Highway 90 and west of Spur 239) counties, there is an open 
season during which only antlerless and spike-buck deer may be taken only with a 
muzzleloader. 
(B) (No change.) 
(C) Bag limit: four antlerless or spike-buck deer in the aggregate, no more than 
two of which may be spike bucks. 
(9) Special Youth-Only Season. There shall be a special youth-only general 
hunting season in all counties where there is a general open season. 
(A) open season: the Saturday and Sunday immediately preceding the first 
Saturday in November. 
(B) bag limits, provisions for the take of antlerless deer, and special 
requirements: 
(i) as specified for the first two days of the general season in the individual 
counties in paragraphs (1)-(6) of this subsection, except as provided in item 
(ii) of this subparagraph; and 
(ii) in the counties listed in paragraph (4)(G) of this subsection, as specified 
for the period of time from Thanksgiving Day through the Sunday immediately 
following Thanksgiving Day. 
(C) Only licensed hunters 16 years of age or younger may hunt during the season 
established by this subsection. 
(c) Mule deer. The open seasons and annual bag limits for mule deer shall be as 
follows. 
(1)-(2) (No change.) 
(3) In Andrews (west of U.S. Highway 385), Bailey, Hockley, Lamb, Terry, and 
Yoakum counties, there is a general open season. 
(A)-(C) (No change.) 
(4)-(5) (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 July 31, 1998.
TRD-9812133
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: March 13, 1998
For further information, please call: (512) 389-4775

31 TAC sec.65.50, sec.65.52
The repeals are adopted under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
Commission with authority to establish wildlife resource regulations for this 
state. 
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 July 31, 1998.
TRD-9812134
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: March 13, 1998
For further information, please call: (512) 389-4775

Division 3. Seasons and Bag Limits-Fishing Provisions
31 TAC sec.65.71, sec.65.72
The repeals are adopted under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
Commission with authority to establish wildlife resource regulations for this 
state. 
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 July 31, 1998.
TRD-9812135
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: March 13, 1998
For further information, please call: (512) 389-4775

Division 1. General Provisions
31 TAC sec.65.26
The Texas Parks and Wildlife Commission adopts the repeal of sec.65.26 and new 
sec.65.26, concerning Managed Lands Deer (MLD) permits, with changes to the 
proposed text as published in the May 1, 1998, issue of the Texas Register (23 
TexReg 4215). The change to the proposed rule gives landowners until the last 
Sunday in February, rather than the third Sunday in February, to achieve harvest 
quotas specified by the department; eliminates subsection (e)(4), which was 
redundant; and nonsubstantively rewords subsection (f) for purposes of 
clarification. 
The repeal and new section are necessary to advance the commission policy of 
providing the maximum opportunity for the enjoyment of wildlife resources by the 
citizens of this state, consistent with sound biological management practices. 
The new section will function to establish: eligibility requirements for the 
issuance of MLD permits; privileges accruing to the holders of MLD permits; 
tagging requirements; the conditions and time periods during which it is lawful 
to hunt deer on properties for which MLD permits have been issued; provisions 
for the return of MLD permits by landowners who opt out of the program; and 
conditions under which the department may refuse to issue MLD permits. 
The department received 86 comments concerning adoption of the proposed rule. 
Twenty-six commenters opposed adoption on the basis that the proposed rule was 
part of another department rulemaking concerning Deer Management Permits. The 
department disagrees and responds that the two rulemaking activities are 
independent of one another. No changes were made as a result of the comments.
Four commenters opposed adoption by stating that deer seasons are already too 
long. The department disagrees with the comments and responds that the MLD 
program operates by fixing a biologically sound harvest quota for a given 
property and giving the landowner as much time as possible to accomplish 
management goals. Fifty-six comments were in favor of adoption. Sportsmen 
Conservationists of Texas and Texas Wildlife Association commented in favor of 
adoption.
The repeal is adopted under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
Commission with authority to establish wildlife resource regulations for this 
state. 
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 July 31, 1998.
TRD-9812137
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: May 1, 1998
For further information, please call: (512) 389-4775

The new section is adopted under Parks and Wildlife Code, Chapter 61, Uniform 
Wildlife Regulatory Act (Wildlife Conservation Act of 1983), which provides the 
Commission with authority to establish wildlife resource regulations for this 
state. 

sec.65.26. Managed Lands Deer (MLD) Permits. 
(a) MLD permits may be issued only to a landowner who has a current WMP in 
accordance with sec.65.25 of this title (relating to Wildlife Management Plan) 
that specifies a harvest quota of buck and/or antlerless white-tailed deer or 
antlerless mule deer. 
(b) An applicant may request the issuance of permits for antlerless-only or 
both-sex harvest quotas for white-tailed deer, or an antlerless-only harvest 
quota for mule deer. 
(c) The number of MLD permits distributed to a hunter shall be at the discretion 
of the landowner. 
(d) Except for deer taken under an Antlerless and Spike-Buck Control Permit, all 
deer harvested on a property where MLD permits have been issued must immediately 
be tagged with the appropriate MLD permit as specified in the WMP and with the 
appropriate tag from the hunting license of the person who killed the deer. 
(e) On all tracts of land for which both MLD buck permits and MLD antlerless 
permits have been issued for the harvest of white-tailed deer, and on properties 
for which the WMP specifies a harvest quota of zero for either sex: 
(1) the bag limit shall be five white-tailed deer, no more than three bucks, 
regardless of the county bag limit;
(2) the provisions of sec.65.42(b)(7) of this title (relating to Archery-Only 
Open Season) and the stamp requirements of Parks and Wildlife Code, Chapter 43, 
Subchapter I, do not apply; and 
(3) the landowner may allow the hunting of white-tailed deer from the Saturday 
closest to September 30 through the last Sunday in January. 
(f) If a landowner in possession of MLD permits does not wish to abide by the 
harvest quota specified by the WMP, the landowner must return all MLD permits to 
the department by the Saturday closest to September 30. 
(g) The department reserves the right to deny further issuance of MLD permits to 
a landowner who exceeds the harvest quota specified by the WMP or who does not 
otherwise abide by the WMP. 
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 July 31, 1998.
TRD-9812138
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: May 1, 1998
For further information, please call: (512) 389-4775

SUBCHAPTER D. Deer Management Permit
31 TAC sec.sec.65.131-65.138
The Texas Parks and Wildlife Commission adopts new sec.sec.65.131-65.138, 
concerning deer management permits. Sections 65.133 and 65.136 are adopted with 
changes to the proposed text as published in the May 1, 1998, issue of the Texas 
Register (23 TexReg 4216). Sections 65.131, 65.132, 65.134, 65.135, 65.137, and 
65.138 are adopted without changes to the proposed text and will not be 
republished. The change to sec.65.133 adds clarifying language to subsection (e) 
to specify that the term 'deer' includes parts of deer. The change to sec.65.136 
alters release parameters to provide a timeframe of March 1 through September 1 
for the release of deer.
The new sections are necessary to implement the provisions of House Bill 2542, 
enacted by the 75th Legislature, which authorized the commission to create and 
administer a permit for the management of white-tailed deer. 
The new sections will function to establish a deer management permit; provide 
for application requirements and fees; establish general provisions; specify 
facility standards for pens in which deer are detained, the period of time deer 
may be detained, the requirements for marking detained deer, and the manner in 
which detained deer are released; provide for the disposition of incidental 
mortalities; and impose penalties for violations of the new sections. 
The department received 609 comments regarding adoption of the proposed rules. 
One hundred and sixty-two comments were in favor of adoption. Four hundred and 
forty-seven commenters were opposed to adoption. 
Eighty-nine commenters opposed adoption on the basis that the proposal would 
effectively make deer the private property of landowners. The department 
disagrees with the comments and responds that Parks and Wildlife Code, Chapter 
43, Subchapter R, specifically states that deer managed under the terms of a 
deer management permit remain the property of the people of the state. No 
changes were made as a result of the comments. 
Sixty-three commenters opposed adoption and stated that deer detained under a 
deer management permit would be domesticated animals rather than wildlife. The 
department disagrees with the comments and responds that by regulation and by 
statute, deer held under a permit may only be held temporarily, and that 
temporary detention would not be sufficient to reduce a wild animal to a state 
of domestication. No changes were made as the result of the comments. 
Fifty-eight commenters opposed adoption on the basis that regulations would only 
benefit persons wealthy enough to pay for the fee and infrastructure necessary 
to acquire a permit. The department disagrees with the comments and responds 
that the fee is necessary to recover the administrative costs of evaluating 
management plans and processing applications; as for the cost to the landowner 
of providing infrastructure, the department responds that the provisions of 
Parks and Wildlife Code, Chapter 43, Subchapter R, necessarily involve expenses 
associated with fencing and pen requirements, and that the department in 
promulgating the regulations has no authority to waive, modify, or assume such 
costs. No changes were made as a result of the comments. 
Thirty commenters opposed adoption on the basis of opposition to high fences. 
The department disagrees with the comments and responds that while the 
department possesses statutory authority in some instances to specify fencing 
requirements for particular purposes, it has no general statutory or regulatory 
authority to ban or limit the right of landowners to erect fencing of any type. 
No changes were made as a result of the comments. 
Twenty-nine commenters opposed adoption because the regulations would limit the 
ability of wild animals, including deer, to range freely. The department 
disagrees with the comments and responds that on a specific property, certainly, 
a high fence does confine wildlife; however, the landowner incurs no statutory 
liability as a result of fencing, and such fencing is specifically required by 
Parks and Wildlife Code, Chapter 43, Subchapter R, if a permit is to be issued. 
No changes were made as a result of the comments. 
Twenty-eight commenters opposed adoption because in their opinion the capture of 
deer would cause injuries and/or death. The department disagrees with the 
comments and responds that while any capture operation poses inherent risk to 
the animal being captured, a carefully managed capture reduces the risk to 
acceptable levels. No changes were made as a result of the comments. 
Twenty-six commenters opposed adoption on the basis that it would cause the cost 
of hunting to rise. The department disagrees with the comments and responds that 
it has no statutory authority to regulate the cost of hunting opportunity, which 
is purely a business matter between the landowner and the hunter. No changes 
were made as a result of the comments. 
Twenty-four commenters opposed adoption because in their opinion the regulations 
would dilute or pervert the sport of recreational hunting. The department 
disagrees with the comments and responds that it is a staunch advocate of 
ethical hunting and will continue to educate the public about the importance of 
hunting ethics as well as enforcing all regulations relating to hunting ethics. 
No changes were made as a result of the comments. 
Twenty-four commenters opposed adoption by stating that the department would be 
unable to ensure that captured deer would be humanely treated. The department 
disagrees with the comments and responds that the Penal Code contains 
provisions, enforceable by any peace officer in the state, for the humane 
treatment of animals. No changes were made as a result of the comments. 
Seventeen commenters opposed adoption because in their opinion the creation of 
the permit would lead to unscrupulous or illegal behavior. The department 
disagrees with the comments and responds that illegal behavior takes place in 
spite of regulations, not because of them, and that the department's game 
wardens will enforce the law. No changes were made as a result of the comments. 
Fifteen commenters opposed adoption on the basis that that penning deer would 
diminish their ability to survive in the wild. The department disagrees with the 
comments and responds that temporary detention, which is the only detention 
allowable by law, should not result in deer being unable to fend for themselves 
or to respond naturally to the presence of predators. No changes were made as a 
result of the comments. 
Ten commenters opposed adoption by stating that the regulations would eliminate 
fair chase. The department disagrees with the comments and responds that it is a 
staunch advocate of ethical hunting and will continue to educate the public 
about the importance of hunting ethics as well as enforcing all regulations 
relating to hunting ethics. No comments were made as a result of the comments.
Eight commenters opposed adoption on the basis that the regulations are not 
biologically necessary. The department agrees with the comments, but responds 
that the regulations would enable private landowners to apply experimental 
research and management techniques on their own land at their own expense 
without exerting any detrimental impact on the resource. No changes were made as 
a result of the comments. 
Seven commenters opposed adoption by stating that the regulations gave an unfair 
advantage to landowners who receive permits. The department disagrees with the 
comments and responds that each permittee must have a department-approved deer 
management plan. The department will not approve plans that are at odds with the 
dictates of sound biological management. Thus, a permittee's management plan 
would be identical to that for any low-fenced property of similar size and 
habitat conditions. No changes were made as a result of the comments.
Four commenters opposed adoption on the basis that the pen sizes stipulated in 
the regulations were too small. The department disagrees with the comments and 
responds that the pens are intended for temporary detention and are adequate for 
that purpose. No changes were made as a result of the comments. 
Two commenters opposed adoption and stated that confining deer in pens would 
lead to disease outbreaks. The department disagrees with the comments and 
responds that while it is true that the higher the density of a population, the 
faster a transmittable disease can spread, the maximum densities under the 
regulations, in concert with required segregation, should minimize the potential 
for disease transmission. In any event, the department does not possess 
statutory authority to control or eliminate disease to protect public health or 
livestock. No changes were made as a result of the comments. 
One commenter opposed adoption on the basis that inbreeding would occur. The 
department agrees with the comment and responds that a proper and carefully 
administered breeding plan would prevent inbreeding, if that is a management 
goal. No changes were made as a result of the comments. 
One commenter opposed adoption because there were no provisions requiring 
permittees to pay restitution value for deer detained under the permit. The 
department disagrees with the comment and responds that no wild deer in this 
state may be privately owned. No changes were made as a result of the comments.
The Texas Wildlife Association and Texas Trophy Hunters Association commented in 
favor of adoption of the rules. The Wildlife Society, Texas Chapter; Southwest 
Outdoor Almanac; Wildlife Management Institute; Texas Committee on Natural 
Resources; Sierra Club - Lone Star Chapter; Galveston Regional Sierra Club; 
Sportsmen Conservationists of Texas; Davis Mountains and Trans-Pecos Heritage 
Society; Humane Society of the United States; and Texas Humane Legislation 
Network commented in opposition to the proposed rules. 
The new sections are adopted under Parks and Wildlife Code, Chapter 43, 
Subchapter R, as enacted by the passage of House Bill 2542, 75th Texas 
Legislature, Regular Session, 1997, which provides the commission with authority 
to establish a permit for the management of wild white-tailed deer; the number, 
type, and length of time that deer may be detained in an enclosure; and the fee 
for a deer management permit. 

sec.65.133. General Provisions.
(a) Deer detained under a DMP shall not be commingled with deer held under any 
other license or permit, except as provided under this subchapter. 
(b) Any deer introduced into a pen containing deer detained under a DMP become 
wild deer and must be released according to the provisions of sec.65.130 of this 
title (relating to Release). 
(c) The holder of a DMP is entitled to the issuance of Managed Lands Deer 
Permits subject to the provisions of sec.65.26 of this title (relating to 
Managed Lands Deer (MLD) Permits). 
(d) A DMP authorizes the permittee to detain deer for natural breeding only. 
(e) No deer, parts of deer, or by-products of any deer held under a DMP may be 
sold, bartered, or traded for any consideration. 

sec.65.136. Release. 
(a) Release of deer shall be effected by removing, for a continuous distance of 
no less than 100 yards, those components of a pen that serve to maintain deer in 
a state of detention within the pen. Such components shall be removed for no 
fewer than 60 consecutive days. The provisions of this subsection may be 
altered, provided the specific details of the release technique are included in 
the applicant's deer management plan and are approved by the department. 
(b) No deer held under a DMP shall be released between September 1 and March 1, 
unless such release is approved by the department in the applicant's management 
plan. 
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 July 31, 1998.
TRD-9812139
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: May 1, 1998
For further information, please call: (512) 389-4775

SUBCHAPTER H. Public Lands Proclamation
31 TAC sec.sec.65.190, 65.193, 65.200
The Texas Parks and Wildlife Commission adopts amendments to sec.65.190, 65.193, 
and 65.200, concerning Public Lands Proclamation, without changes to the 
proposed text as published in the March 13, 1998, issue of the Texas Register 
(23 TexReg 2741).
The amendment to sec.65.190 is necessary to maintain a current and accurate list 
of wildlife management areas and public hunting lands to which the provisions of 
Subchapter H apply, and to provide additional opportunity for recreational use 
of public lands. The amendment to sec.65.193 is necessary to implement 
provisions of House Bill 2542, Acts of the 75th Texas Legislature and to pursue 
Commission policy by offering increased hunting and recreational opportunity 
wherever possible. The amendment to 65.200 is necessary to standardize the time 
limits for the emplacement of temporary blinds on all wildlife management areas 
where they are permitted. 
The amendment to sec.65.190 adds, deletes, or renames various units of the 
public hunting system, and provides an access fee for equestrians to areas 
leased from the U.S. Army Corps of Engineers. The amendment to sec.65.193 adds a 
reference to crossbows, expands the list of species that may be hunted during an 
extended hunt, and requires an access permit for equestrians on areas leased 
from the U.S. Army Corps of Engineers. The amendment to sec.65.200 deletes the 
24-hour limitation on the emplacement of temporary blinds on certain wildlife 
management areas. 
One commenter opposed adoption of the proposed rules. The commenter opposed 
hunting activities on state parks, stating that the practice is not biologically 
sound because too many does are taken and all the bucks are gone, and that 
silencers and night hunting are rampant. The department disagrees with the 
comments, and responds that state park hunts are planned and conducted using the 
same biological management techniques used to plan and conduct hunts on wildlife 
management areas; that the harvest is carefully controlled; and that night 
hunting and the use of silencers are not elements of the department's public 
hunting program. No changes were made as a result of the comments.
The Texas Wildlife Association and Sportsmen Conservationists of Texas commented 
in favor of adoption. 
The amendments are adopted under Parks and Wildlife Code, Chapter 81, Subchapter 
E, which provides the Parks and Wildlife Commission with authority to establish 
an open season on wildlife management areas and public hunting lands and 
authorizes the executive director to regulate numbers, means, methods, and 
conditions for taking wildlife resources on wildlife management areas and public 
hunting lands; Chapter 12, Subchapter A, which provides that a tract of land 
purchased primarily for a purpose authorized by the code may be used for any 
authorized function of the department if the commission determines that multiple 
use is the best utilization of the land's resources; and Chapter 62, Subchapter 
D, which provides authority, as sound biological management practices warrant, 
to prescribe seasons, number, size, kind, and sex and the means and method of 
taking any wildlife. 
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 July 31, 1998.
TRD-9812136
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: March 13, 1998
For further information, please call: (512) 389-4775

SUBCHAPTER N. Migratory Gamebird Proclamation
Division 1. General Provisions
31 TAC sec.sec.65.309, 65.312-65.316, 65.319
The Texas Parks and Wildlife Commission adopts amendments to sec.sec.65.309, 
65.312-65.316, and 65.319, concerning the Migratory Game Bird Proclamation. 
Section 65.315, concerning Open Seasons and Bag and Possession Limits - Early 
Season, and sec.65.319, concerning Extended Falconry Season - Early Season 
Species, are adopted with changes to the proposed text as published in the May 
1, 1998, issue of the Texas Register (23 TexReg 4217). Sections 65.309, 65.312-
65.314, and 65.316 are adopted without changes to the proposed text and will not 
be republished.
The change to sec.65.315 adds seven days to the teal season and, in keeping with 
commission policy, adjusts the seasons for rail and gallinule to run 
concurrently with that for teal. The change to sec.65.319 alters the season 
dates for the take of early-season species by means of falconry in order to 
conform with federal law regarding total opportunity that may be provided by the 
state.
The amendment to sec.65.309 is necessary to add or modify definitions of words 
and terms used elsewhere in the rules. The amendment to sec.65.312 is necessary 
to insure the integrity of established bag and possession limits. The amendment 
to sec.65.313 is necessary to eliminate redundant verbiage, conform the 
department's regulations with those of the federal government, and to implement 
a statutory provision authorizing the executive director to initiate rulemaking, 
which allows the department to react to changes in federal law in a more timely 
manner. The amendment to sec.65.314 is necessary to place all species of 
migratory game birds that are hunted at the same time of year within a single 
section delineating the zones and boundaries for those species. The amendment to 
sec.65.315 is necessary to establish and provide for the hunting of certain 
species of migratory by setting season dates and bag limits. The amendment to 
sec.65.316 is necessary to remove references to closed areas, which are being 
eliminated in order to increase hunter opportunity. The amendment to sec.65.319 
is necessary to: adjust season dates to conform with federal law; and add to the 
applicability of the section certain species of migratory birds being relocated 
from sec.65.320, which will be adopted at a later date. 
The amendment to sec.65.309, concerning Definitions, adds a definition of 
Harvest Information Program (HIP), modifies the definition of nontoxic shot to 
eliminate unnecessary verbiage, and numbers the definitions to conform with the 
new Texas Register style sheet. The amendment of sec.65.312 makes the 
documentation requirement for migratory game birds the same as all other game 
birds except turkey. The amendment of sec.65.313 eliminates redundant wording 
already in statute, makes HIP requirements conform to those in federal 
regulations, and authorizes the executive director to engage in rulemaking after 
notifying the chairman of the commission. The amendment to sec.65.314, 
concerning Zones and Boundaries for Early Season Species, adds three species of 
migratory game birds (sandhill cranes, woodcock, and snipe) from sec.65.317, 
concerning Zones and Boundaries for Late Season Species, to place species with 
similar hunting regulations in the same section. The amendment to sec.65.315, 
concerning Open Seasons and Bag Limits-Early Season, adjusts season dates to 
provide for optimum hunter opportunity, clarifies the bag composition for doves 
as adopted by the commission in 1997, and relocates the season dates for 
sandhill cranes, woodcock, and snipe from sec.65.318, concerning Open Seasons 
and Bag Limits-Late Season Species, to consolidate provisions for those species 
in a single section with similar provisions for other species. The amendment to 
sec.65.316, concerning Closed Areas, eliminates the white-winged dove sanctuary 
areas, which are no longer necessary for the management of that species. The 
amendment to sec.65.317, concerning Zones and Boundaries for Late Season 
Species, has been described earlier. The amendment to sec.65.318, concerning 
Open Seasons and Bag Limits-Late Season, adjusts season dates to provide for 
optimum hunter opportunity and moves the season dates for sandhill cranes, 
woodcock, and snipe to another section for the reasons described earlier. The 
amendments to sec.65.319 and sec.65.320, concerning Extended Falconry Seasons 
for Early Season Species and Late Season Species, respectively, adjusts season 
dates to provide for optimum hunter opportunity and removes provisions for 
sandhill cranes, woodcock, and snipe for relocation to another section.
The department received five comments concerning adoption of the proposed rules. 
One commenter opposed the expanded whitewing bag limit during the regular 
mourning dove season. The department disagrees with the comment and responds 
that the bag limits represent the commission policy of creating the greatest 
hunter opportunity possible within the dictates of sound biological management 
practices. No changes were made as a result of the comment. One commenter stated 
the Special whitewing season should be closed for 5 years. The department 
disagrees with the comment, and responds that there is no compelling biological 
justification for such an action. No changes were made as a result of the 
comment. One commenter requested that the bag limit for teal be increased. The 
department disagrees with the comment and responds that maximum bag limits are 
established by the federal government; the department has no authority to 
authorize a bag limit in excess of the current bag limit. No changes were made 
as a result of the comment. Four commenters supported adoption of the proposed 
rules. The Texas Wildlife Association and Sportsmen Conservationists of Texas 
supported adoption of the rules. 
The amendments are adopted under Parks and Wildlife Code, Chapter 64, Subchapter 
C, which authorizes the Commission and the Executive Director to provide the 
open season and means, methods, and devices for the hunting and possessing of 
migratory game birds. 

sec.65.315. Open Seasons and Bag and Possession Limits - Early Season.
(a) Rails. 
(1) Dates: September 12-27, 1998, and October 24 - December 16, 1998. 
(2) Daily bag and possession limits: 
(A) king and clapper rails: 15 in the aggregate per day; 30 in the aggregate in 
possession. 
(B) sora and Virginia rails: 25 in the aggregate per day; 25 in the aggregate in 
possession. 
(b) Dove seasons. 
(1) North Zone. 
(A) Dates: September 1-October 30, 1998. 
(B) Daily bag limit: 15 mourning doves, white-winged doves, and white-tipped 
(white-fronted) doves in the aggregate, including no more than two white-tipped 
doves per day; 
(C) Possession limit: 30 mourning doves, white-winged doves, and white-tipped 
doves in the aggregate, including no more than four white-tipped doves in 
possession. 
(2) Central Zone. 
(A) Dates: September 1-October 18, 1998, and December 26, 1998 -January 6, 1999. 
(B) Daily bag limit: 15 mourning doves, white-winged doves, and white-tipped 
(white-fronted) doves in the aggregate, including no more than two white-tipped 
doves per day; 
(C) Possession limit: 30 mourning doves, white-winged doves, and white-tipped 
doves in the aggregate, including no more than four white-tipped doves in 
possession. 
(3) South Zone. 
(A) Dates: Except in the special white-winged dove area as defined in sec.65.314 
of this title (relating to Zones and Boundaries for Early Season Species), 
September 25-November 8, 1998, and December 26, 1998-January 9, 1999. In the 
special white-winged dove area, the mourning dove season is September 25-
November 8, 1998, and December 26, 1998-January 5, 1999. 
(B) Daily bag limit: 15 mourning doves, white-winged doves, and white-tipped 
(white-fronted) doves in the aggregate, including no more than two white-tipped 
doves per day; 
(C) Possession limit: 30 mourning doves, white-winged doves, and white-tipped 
doves in the aggregate, including no more than four white-tipped doves in 
possession. 
(4) Special white-winged dove area. 
(A) Dates: September 5, 6, 12, and 13, 1998. 
(B) Daily bag limit: 10 white-winged doves, mourning doves, and white-tipped 
(white-fronted) doves, in the aggregate to include no more than five mourning 
doves and two white-tipped doves per day; 
(C) Possession limit: 20 white-winged doves, mourning doves, and white-tipped 
doves in the aggregate to include no more than 10 mourning doves and four white-
tipped doves in possession. 
(c) Gallinules. 
(1) Dates: September 12-27, 1998, and October 24, 1998 - December 16, 1998. 
(2) Daily bag and possession limits: 15 in the aggregate per day; 30 in the 
aggregate in possession. 
(d) Teal ducks. 
(1) Dates: September 12-27, 1998. 
(2) Daily bag and possession limits: four in the aggregate per day; eight in the 
aggregate in possession. 
(e) Red-billed pigeons, and band-tailed pigeons. No open season. 
(f) Shorebirds. No open season. 
(g) Sandhill cranes. A free permit is required of any person to hunt sandhill 
cranes in areas where an open season is provided under this proclamation. 
Permits will be issued on an impartial basis with no limitation on the number of 
permits that may be issued. The daily bag limit is three. The possession limit 
is six. 
(1) Zone A: November 7, 1998-February 7, 1999. 
(2) Zone B: November 28, 1998-February 7, 1999. 
(3) Zone C: January 2, 1999-February 7, 1999. 
(h) Woodcock: December 18, 1998-January 31, 1999. The daily bag limit is three. 
The possession limit is six. 
(i) Common snipe (Wilson's snipe or jacksnipe): October 17, 1998-January 31, 
1999. The daily bag limit is eight. The possession limit is 16. 

sec.65.319. Extended Falconry Season - Early Season Species.
(a) It is lawful to take the species of migratory birds listed in this section 
by means of falconry during the following Extended Falconry Seasons: 
(1) mourning doves and white-winged doves: November 9-December 25, 1998; and 
(2) rails and gallinules: December 17, 1998 - January 22, 1999. 
(3) woodcock: November 24-December 17, 1998, and February 1-March 10, 1999. 
(b) (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 July 31, 1998.
TRD-9812140
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: August 20, 1998
Proposal publication date: May 1, 1998
For further information, please call: (512) 389-4775

TITLE 34. PUBLIC FINANCE
PART I. Comptroller of Public Accounts
CHAPTER 3.Tax Administration
SUBCHAPTER V.Franchise Tax
34 TAC sec.3.558
The Comptroller of Public Accounts adopts an amendment to sec.3.558, concerning 
earned surplus: officer and director compensation, without changes to the 
proposed text as published in the June 19, 1998, issue of the Texas Register (23 
TexReg 6423).
Subsection (b)(1) provides for an updated definition of the Internal Revenue 
Code, in accordance with Senate Bill 861, 75th Legislature, 1997. Subsection 
(b)(3) amends the definition of "compensation" to clarify that the term does not 
include any amounts that are not deductible for federal income tax purposes, in 
accordance with agency policy. Subsection (b)(9) is being revised for clarity.
New sec.(b)(10) clarifies the definition of "officer of a corporation." 
No comments were received regarding adoption of the amendment. 
This amendment is adopted under the Tax Code, sec.111.002, which provides the 
comptroller with the authority to prescribe, adopt, and enforce rules relating 
to the administration and enforcement of the provisions of the Tax Code, Title 
2.
The amendment implements the Tax Code, sec.171.110.
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 July 28, 1998.
TRD-9811937
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Effective date: August 17, 1998
Proposal publication date: June 19, 1998
For further information, please call: (512) 463-4062

TITLE 37. PUBLIC SAFETY AND CORRECTIONS
PART III. Texas Youth Commission
CHAPTER 81.Interaction with the Public
37 TAC sec.81.36
The Texas Youth Commission (TYC) adopts new sec.81.36, concerning notification 
to public and private schools, without changes to the proposed text as published 
in the February 6, 1998, issue of the Texas Register (23 TexReg 919). 
The justification for the new rule is to facilitate more efficient communication 
between the Texas Youth Commission and the local school districts in compliance 
with laws amended during the 75th legislative session. 
The new rule will establish a procedure for TYC to notify public and private 
school personnel of the arrest, detention, or referral of a TYC paroled youth 
and any subsequent disposition of that arrest or detention. 
No comments were received regarding adoption of the new rule. 
The new rule is adopted under the Human Resources Code, sec.61.036, which 
provides the Texas Youth Commission with the authority to cooperate with all 
existing agencies and encourage the establishment or programs, both local and 
statewide, the object of which is services to delinquent and predelinquent youth 
of the state.
The adopted rule implements the Human Resource Code, sec.61.034.
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 July 27, 1998.
TRD-9811896
Steve Robinson
Executive Director
Texas Youth Commission
Effective date: August 28, 1998
Proposal publication date: February 6, 1998
For further information, please call: (512) 424-6244

CHAPTER 85.Admission and Placement
SUBCHAPTER B.Placement Planning
37 TAC sec.sec.85.21, 85.23, 85.25
The Texas Youth Commission (TYC) adopts amendments to sec.sec.85.21, 85.23, and 
85.25, concerning the program assignment system, classification, and minimum 
length of stay without changes to the proposed text. The proposed text was 
published in the May 8, 1998, issue of the Texas Register (23 TexReg 4526). 
The justification for amending the sections is greater public protection. 
The amendments will reinstate the classification of Violator of Conduct 
Indicating a Need for Supervision (CINS) Probation and will clarify that CINS 
offenders will be assigned no minimum length of stay. The amendment to sec.85.23 
also adds seven (7) Penal Code offenses to the TYC type B violent offender 
classification resulting in an extended length of stay for youth classified as a 
type B offender for the offenses. 
No comments were received regarding adoption of the amendments. 
The amendments are adopted under the Human Resources Code, sec.61.075 
determination of treatment, which provides the Texas Youth Commission with the 
authority to order the child's confinement under conditions it believes best 
designed for the child's welfare and the interests of the public.
The adopted rule implements the Human Resource Code, sec.61.034.
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 July 27, 1998.
TRD-9811897
Steve Robinson
Executive Director
Texas Youth Commission
Effective date: August 28, 1998
Proposal publication date: May 8, 1998
For further information, please call: (512) 424-6244

CHAPTER 87.Treatment
SUBCHAPTER B.Special Needs Offender Programs
37 TAC sec.87.51
(Editor's note: In the proposed version of sec.87.51 as published February 6, 
1998, (23 TexReg 920), subsection (h) was inadvertently left out due to an error 
by the Texas Register and therefore subsection (h) is being added since the 
information is existing rule text. It is adopted here without changes to the 
proposal as filed by the agency. The text is being published for clarification.)
The Texas Youth Commission (TYC) adopts an amendment to sec.87.51, concerning 
special needs offenders, without changes to the proposed text as published in 
the February 6, 1998, issue of the Texas Register (23 TexReg 920). 
The justification for amending the section is more efficient use of state 
resources and greater public protection. 
The amendment will make more efficient use of specialized treatment resources by 
expanding the eligibility status have Priority will be given to youth who the 
TYC resocialization process. 
No comments were received regarding adoption of the amendment. 
The amendment is adopted under the Human Resources Code, sec.61.076, which 
provides the Texas Youth Commission with the authority to correct the socially 
harmful tendencies of a child committed to it by requiring the child to 
participate in moral, academic, vocational, physical and correctional training 
activities. 
The adopted rule implements the Human Resource Code, sec.61.034. 

sec.87.51.Special Needs Offenders.
(a) Purpose. The purpose of this rule is to identify the process by which youth 
committed to TYC are determined eligible for, subsequently placed and then 
released from, specialized treatment programs. 
(b) Explanation of Terms Used. 
(1) Specialized treatment populations - Emotionally disturbed offenders, 
mentally retarded offenders, sex offenders, chemically dependent offenders and 
capital offenders identified through assessment during intake process. 
(2) Primary specialized treatment placement - designated residential placements 
at which at least one specialized treatment program is available. 
(3) Specialized aftercare - outpatient services provided to TYC youth in the 
community by qualified providers in specific specialized treatment areas. 
(c) All TYC youth will be assessed for specialized treatment needs. 
(d) Placement to receive specialized treatment is limited to resource 
availability. 
(e) Youth will be determined eligible for Capital Offender, Sex Offender and 
Chemical Dependency primary specialized treatment programs based on the nature 
of offending behavior, on level of risk, and level of amenability to treatment. 
(f) Youth will be placed in a Capital Offender, Sex Offender, and Chemical 
Dependency specialized treatment program as resources are available. Priority 
will be given to youth who have completed Phase III. 
(g) Youth considered to have successfully completed specialized treatment 
program will have successfully completed program criteria. 
(h) Youth successfully completing primary specialized treatment will receive six 
months of specialized aftercare as resources are available. 
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 July 27, 1998.
TRD-9811898
Steve Robinson
Executive Director
Texas Youth Commission
Effective date: August 28, 1998
Proposal publication date: February 6, 1998
For further information, please call: (512) 424-6244

CHAPTER 91.Program Services
SUBCHAPTER A.Basic Services
37 TAC sec.91.21
The Texas Youth Commission (TYC) adopts new sec.91.21, concerning moral values, 
worship and religious education, without changes to the proposed text as 
published in the February 27, 1998, issue of the Texas Register (23 TexReg 
1920). 
The justification for the new section is greater protection for the public and 
TYC youth.
The new section will provide for the TYC religious practices and services to 
ensure TYC youth have access to religious services and programs of their choice 
limited only by the potential threat to safety to persons of disruptions of 
order of the facility. 
No comments were received regarding adoption of the new section. 
The new section is adopted under the Human Resources Code, sec.61.034, which 
provides the Texas Youth Commission with the authority to provide for the 
religious and spiritual training of children in its custody according to the 
children's individual choices. 
The adopted rule implements the Human Resource Code, sec.61.034.
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 July 27, 1998.
TRD-9811901
Steve Robinson
Executive Director
Texas Youth Commission
Effective date: August 28, 1998
Proposal publication date: February 27, 1998
For further information, please call: (512) 424-6244

SUBCHAPTER C.Youth Employment and Work
37 TAC sec.91.61
The Texas Youth Commission (TYC) adopts new sec.91.61, concerning youth 
employment and work, without changes to the proposed text as published in the 
February 6, 1998, issue of the Texas Register (23 TexReg 921). 
The justification for the new section is increased structure within TYC programs 
thus providing greater public protection. 
The new section will provide youth committed to TYC with the opportunity to 
experience the rewards and responsibilities of constructive, compensated and 
uncompensated work. 
No comments were received regarding adoption of the new section. 
The new section is adopted under the Human Resources Code, sec.61.076, which 
provides the Texas Youth Commission with the authority to require the child to 
participate in academic and vocational activities. 
The adopted rule implements the Human Resource Code, sec.61.034.
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 July 27, 1998.
TRD-9811900
Steve Robinson
Executive Director
Texas Youth Commission
Effective date: August 28, 1998
Proposal publication date: February 6, 1998
For further information, please call: (512) 424-6244

CHAPTER 95.Youth Discipline
SUBCHAPTER A.Disciplinary Practices
37 TAC sec.95.3, sec.95.15
The Texas Youth Commission (TYC) adopts an amendment to sec.95.3, concerning 
rules of conduct, contraband and dress, and new sec.95.15, concerning parole 
minor disciplinary consequences, without changes to the proposed text as 
published in the April 10, 1998, issue of the Texas Register (23 TexReg 3653). 
The justification for the amended and the new section is increased public 
protection. 
The amendment to sec.95.3 will allow residential programs to require 
standardized hair styles for male youth committed to TYC. The new sec.95.15 will 
establish a consistent system for administering disciplinary consequences which 
are less severe than parole revocation when the youth violates rules that are 
not serious enough to warrant disciplinary movement or referral to criminal 
court. 
No comments were received regarding adoption of the amendment or the new rule. 
The amendment and new rule are adopted under the Human Resources Code, 
sec.61.0811, which provides the Texas Youth Commission with the authority to 
develop a management system for parole services that objectively measures and 
provides for the systematic examination of children's needs and the development 
of treatment plans to address those needs.
The adopted rule implements the Human Resource Code, sec.61.034.
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 July 27, 1998.
TRD-9811899
Steve Robinson
Executive Director
Texas Youth Commission
Effective date: August 28, 1998
Proposal publication date: April 10, 1998
For further information, please call: (512) 424-6244

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART I. Texas Department of Human Services
CHAPTER 45.Community Living Assistance and Support Services
The Texas Department of Human Services (DHS) adopts new chapter sec.45, 
Community Living Assistance and Support Services, for its Community Living 
Assistance and Support Services (CLASS) program. New sec.sec.45.303, 45.305, 
45.307, 45.309, 45.311, 45.313, 45.319, 45.321, 45.323, 45.325, 45.327, 45.331, 
45.333, 45.335, 45.337, 45.339, 45.341, 45.343, 45.401, and 45.403 are adopted 
with changes to the proposed text published in the February 6, 1998, issue of 
the Texas Register (23 TexReg 922). New sec.sec.45.301, 45.317, and 45.329 are 
adopted without changes to the proposed text and will not be republished. DHS is 
withdrawing proposed new sec.sec.45.201, 45.203, 45.205, 45.207, 45.209, 45.211, 
45.213, 45.215, and 45.315, concerning suspension and termination of services, 
which were proposed at the same time. Major revisions made due to comments 
received and recommendations from the workgroup prompted the need to withdraw 
these rules. DHS will repropose these rules with the revisions at a later date.
The justification for the new chapter is to improve the quality, 
appropriateness, timeliness, and cost-effectiveness of adaptive aids and minor 
home modifications purchased through the Community Living Assistance and Support 
Services program. These rules require detailed specifications for major 
purchases, add requirements for obtaining bids and inspections of completed home 
modifications, providing orientation and training in the use of adaptive aids, 
and establish time frames for delivery and completion. Current policies 
governing the purchase of these items have not been promulgated as rules. The 
justification for the new sections regarding fiscal monitoring is to assure that 
providers maintain adequate and appropriate documentation to support the payment 
of claims for services rendered. Currently, the department has no rules 
requiring fiscal monitoring of Home and Community Support Services agencies 
contracted with the department to provide Community Based Alternatives services. 
These rules define the documentation requirements and establish financial and 
administrative errors subject to recoupment. The proposed rules specify that the 
department will recoup 100% of the paid unit rates in the sample with financial 
errors and 12% of the paid unit rates in the sample with administrative errors. 
The department will provide training and courtesy reviews to providers. 
Providers have the right to appeal any adverse actions including recoupment 
through the department's Formal Hearing rules found in 40 TAC 79, Subchapter Q. 
The new chapter will function to improve the quality, timeliness, and cost- 
effectiveness of adaptive aids and minor home modifications purchased through 
the Community Living Assistance and Support Services program. It will also 
improve the accuracy and completeness of the provider's documentation by 
providing a financial incentive for providers to maintain proper documentation 
and promote internal quality controls to assure proper documentation for billing 
and payment records. 
The department received comments on the proposed rules during the comment period 
and at a public hearing. Comments were received from Girling Home Health, 
Outreach Health Services, the Arc of Texas, North Central Texas Home Care, and 
several individuals. A workgroup composed of consumers, advocates, and providers 
reviewed and provided comments also. A summary of the comments and DHS's 
responses follow: 
Comment: The workgroup recommended an addition to the documentation requirements 
for selection of adaptive aids to clarify that consumer preference alone is not 
sufficient justification for purchasing a more expensive item. 
Response: The department agrees and has added this language to sec.45.303(a)(5).
Comment: The workgroup recommended changing the time frame for verifying that 
adaptive aids meet the needs of the participants from 14 DHS work days from date 
of delivery to 10 DHS work days and to add agency staff involved in the 
procurement as one of the people who could verify consumer satisfaction and 
completion of purchase. If additional orientation/training/adjustments are 
needed, a home visit will be conducted by a therapist, nurse, or durable medical 
equipment vendor. If the home visit is conducted by a therapist or nurse, the 
visit is reimbursed at the hourly rate for nursing or therapy services.
Response: The department agrees and has added this language to sec.45.303(a)(6). 
Comment: The workgroup recommended adding licensed physicians, nurses, and 
rehabilitation engineers to the list of appropriate professionals who can 
provide written specifications for adaptive aids costing $500 or more. 
Response: The department agrees and has added this language to sec.45.303(b)(1) 
for the CLASS program. 
Comment: Numerous comments were received recommending provider reimbursement for 
the requirement to obtain written specifications for adaptive aids costing more 
than $500 and minor home modifications costing more than $1,000. 
Response: The department agrees and has added language in sec.sec.45.303(b)(1) 
and 45.319(3) to clarify that providing assessments and obtaining written 
specifications is reimbursable as a therapy or nursing service if performed by a 
therapist or nurse. If another appropriate professional is required to provide 
the assessment and develop specifications for computer assistive technology, 
environmental controls, or augmentative communication devices, the actual cost 
of writing the specifications and the follow-up orientation/training is 
reimbursed as part of the invoice cost up to a maximum of $500. Written 
specifications for home modifications are reimbursed as part of the invoice cost 
up to a maximum of $200. Providers must maintain documentation to support the 
cost of developing the specifications. 
Comment: Several comments were received regarding the time frames proposed for 
delivering adaptive aids and minor home modifications. The workgroup recommended 
adding a compliance standard of 90% to the proposed time frames with a 
requirement to notify the participant regarding any delays. 
Response: The department agrees and has added the 90% compliance standard for 
meeting required time frames to subsection (b) in sec.sec.45.305, 45.307, 
45.321, and 45.323. 
Comment: Several comments were received recommending provider reimbursement for 
the requirement to perform inspections on all completed home modifications by a 
qualified individual. 
Response: The department agrees and has added language in sec.sec.45.319(6)(B) 
to clarify that the invoice cost of performing the inspections on completed home 
modifications is reimbursed up to a maximum of $150. The provider must maintain 
documentation to support the cost for performing the inspections. 
Comment: The workgroup recommended adding to the list of billable nursing and 
therapy services, time spent in developing written specifications for adaptive 
aids and performing home visits to orient and train consumers on the use of 
adaptive aids. 
Response: The department agrees and this language has been added to 
sec.45.331(1)(F). 
Comment: In sec.45.337(b), the workgroup recommended changing the maximum number 
of installment billings that can be made for a minor home modification from 
three to two billings. 
Response: The department agrees and has made the change. 
Comment: Several commentors stated that the proposed rules seemed prescriptive 
in nature and did not think fiscal monitoring was necessary. 
Response: The department disagrees. These fiscal monitoring rules establish the 
documentation standards to support Medicaid reimbursement of claims paid to Home 
and Community Support Service agency providers and provide financial incentives 
for providers to comply with the standards. Compliance with the standards 
assists the department in meeting the federal assurances regarding financial 
accountability. 
Comment: One commentor asked whether recoupment related to fiscal monitoring was 
subject to due process. 
Response: Yes. Recoupment of funds due to financial and administrative errors is 
considered a provider sanction subject to appeal under the department's Formal 
Hearing procedures as specified in 40 TAC 79, Subchapter Q. These rules require 
written notice of the adverse action with information regarding the provider's 
right of appeal. 
Comment: In sec.45.401(1)(N), the workgroup recommended re-wording for 
clarification regarding billable nursing services. 
Response: The department agrees and sec.45.401(1)(N) has been revised to read: 
DHS reimburses the provider agency for nursing services and there is no other 
documentation available that the nurse provided billable nursing services during 
the visit. 
Comment: In sec.45.401(2)(B), the workgroup recommended revisions to clarify 
that bids were not solicited instead of obtained. 
Response: The department agrees and this section has been revised to read: Bids 
were required for the purchase of an adaptive aid/vehicle modification or the 
completion of a minor home modification and bids were not solicited. 
Comment: In sec.45.403(10), the workgroup recommended changing the limit of 
nursing services used to prevent service breaks from 10 days to 10 hours. 
Response: The department agrees and has made this change. 
Comment: In sec.45.403(11)-(12), the workgroup recommended adding the word 
"invoice" as documentation for purchase of adaptive aids, medical supplies, and 
minor home modifications. 
Response: The department agrees and has made this change. 
The department has initiated changes in sec.sec.45.303(a)(4), 45.303(b)(2), 
45.319(5), 45.319(6)(C), 45.331(1)(G), 45.331(2)(B)-(C), 45.331(4)-(8), 
45.343(8), 45.401(b), 45.401(1)(B), 45.401(1)(O), 45.401(2), 45.403(b), 
45.403(1)-(2), 45.403(3)(C), and 45.403(13) that are editorial in nature. These 
rules were changed to add clarity and reduce duplication. 

SUBCHAPTER C.Program and Claim Payment Requirements
40 TAC sec.sec.45.301, 45.303, 45.305, 45.307, 45.309, 45.311, 45.313, 45.317, 
45.319, 45.321, 45.323, 45.325, 45.327, 45.329, 45.331, 45.333, 45.335, 45.337, 
45.339, 45.341, 45.343
The new sections are adopted under the Human Resources Code, Title 2, Chapters 
22 and 32, which authorizes the department to administer public and medical 
assistance programs and under Texas Government Code sec.531.021, which provides 
the Health and Human Services Commission with the authority to administer 
federal medical assistance funds. 
The new sections implement the Human Resources Code, sec.sec.22.001-22.030 and 
sec.sec.32.001-32.042. 

sec.45.303.Cost-Effective Purchases of Adaptive Aids. 
(a) For any single adaptive aid expenditure costing less than $500, the direct 
services agency (DSA) must: 
(1) determine and document the needs and preferences of the participant for the 
adaptive aid; 
(2) document the necessity for the adaptive aid; 
(3) consider renting the adaptive aid on a short-term basis if the participant's 
needs or desires cannot be accurately determined at the time of the assessment; 
(4) obtain comparative price quotes or use a price list to document prices of 
the adaptive aid from a minimum of three suppliers or annually select a supplier 
based on the lowest prices from the quotes/price list for the main types of 
adaptive aids that the agency has been purchasing. Document in the vendor 
records the names of the suppliers from whom all quotes/price lists were 
obtained, the amount of the quotes/price lists, the items for which the 
quotes/price lists were requested, and the dates the quotes/price lists were 
obtained; 
(5) document the reason each selection is made (examples are cost, delivery time 
of item, record of quality services, access to loaners during repairs, repair 
history, and warranty) or document the selection of an annual supplier. 
Participant preference alone is not sufficient justification for purchasing a 
more expensive item; and 
(6) have a nurse, therapist, or other appropriate agency staff that has been 
involved in the procurement contact the participant within 10 Texas Department 
of Human Services (DHS) work days of delivery to verify that the adaptive aid 
meets the needs of the participant, that orientation was provided to the 
participant in the use of the adaptive aid, and to document completion of 
purchase and satisfaction of the participant on the documentation of completion 
of purchase form. If additional orientation/training or adjustments to the 
adaptive aid are needed, a home visit will be conducted by a therapist, nurse, 
or durable medical equipment vendor. The follow-up home visit must be conducted 
within 14 DHS work days of awareness of the need for additional 
training/orientation or adjustments. If the home visit is conducted by a 
therapist or nurse, the home visit is reimbursed at the hourly rate for nursing 
or therapy services, depending on which professional provided the service. 
(b) For any single adaptive aid expenditure costing $500 or more, in addition to 
complying with the requirements listed in subsection (a) of this section, the 
DSA must: 
(1) obtain written specifications for the adaptive aid from an appropriate 
professional including a licensed physician, nurse, occupational therapist, 
physical therapist, or speech pathologist. Other appropriate professionals, 
including rehabilitation engineers, may provide assessments and specifications 
for computer assistive technology, augmentative communication devices, or 
environmental controls. Providing assessments and obtaining written 
specifications is reimbursable as a nursing service if performed by a nurse and 
as a therapy service if performed by an occupational therapist, physical 
therapist, or speech pathologist and is authorized on the individual service 
plan. If another appropriate professional is required to provide the assessment 
and develop the specifications for computer assistive technology, environmental 
controls, or augmentative communication devices, the actual cost of writing the 
specifications and the follow-up orientation/training visit is reimbursed as 
part of the invoice cost up to a maximum of $500. The provider must maintain 
documentation to support the cost of developing the specifications; and 
(2) obtain a minimum of three written bids if not using price lists or price 
quotes as identified under subsection (a)(5)-(6) of this section, and document 
the reason for the selection including cost, delivery time of item, record of 
quality services, access to loaners during repairs, repair history, and 
warranties. 

sec.45.305.Time Frames for Adaptive Aids Costing Less Than $500.
(a) The direct services agency (DSA) must purchase and ensure delivery of any 
adaptive aid within 14 Texas Department of Human Services (DHS) work days of 
being authorized to purchase the adaptive aid, counting from either the 
effective date of the individual service plan form or the date the form is 
received, whichever is later. 
(b) A 90% compliance level is required. The provider must notify the participant 
and case manager in writing of any delay, with a new proposed date for delivery. 
The notification must be provided on or before the 14th DHS work day following 
authorization. 

sec.45.307.Time Frames for Adaptive Aids Costing $500 or More. 
(a) The direct services agency (DSA) must purchase and ensure delivery of any 
adaptive aid within 30 Texas Department of Human Services (DHS) work days of 
being authorized to purchase the adaptive aid, counting from either the 
effective date of the individual service plan form or the date the form is 
received, whichever is later. 
(b) A 90% compliance level is required. The provider must notify the participant 
and case manager of any delay, with a new proposed date for delivery. The 
notification must be provided on or before the 30th DHS work day following 
authorization. 

sec.45.309.Cost-Effective Purchases of Medical Supplies.
The direct services agency must: 
(1) prior to the selection of medical supplies, obtain comparative price quotes 
or use a price list to document prices of the medical supplies from a minimum of 
three suppliers, document the basis for selection and for those selected, 
document in the vendor records the names of the suppliers from whom all 
quotes/price lists were obtained, the amount of the quotes/price lists, the 
items for which the quotes/price lists were requested, and the dates the 
quotes/price lists were obtained; or 
(2) at least annually select supplies based on the lowest prices from the 
quotes/price list for the main types of supplies that the agency has been 
purchasing, and document the justification of the selection including cost, 
delivery time of item, and record of quality services. 

sec.45.311. Time Frames for Medical Supplies.
(a) The direct services agency (DSA) is responsible for assuring the purchase 
and delivery of any authorized medical supplies within five Texas Department of 
Human Services (DHS) work days from the waiver service initiation date. 
(b) On existing cases, the DSA must deliver medical supplies within five DHS 
work days of being authorized to purchase the supplies, counting from the 
effective date of the individual service plan form, or the date the form is 
received, whichever is later. 
(c) If the DSA cannot ensure delivery of a medical supply due to unusual or 
special supply needs or availability within five DHS work days from the date of 
receipt of DHS's authorization, the DSA must submit the case information form to 
the case manager before the fifth day, containing an explanation why the medical 
supply cannot be delivered within the required time frame and including a new 
proposed date for the delivery. 

sec.45.313.Time Frames for Emergency Purchases of Medical Supplies.
If the case manager or direct services agency (DSA) identifies a need for the 
emergency purchase and delivery of a medical supply, the DSA must deliver the 
item within two Texas Department of Human Services work days of identifying the 
need for the medical supply. 

sec.45.319.Cost-Effective Purchases of Minor Home Modifications. 
The direct services agency (DSA) must: 
(1) determine and document the needs and preferences of the participant for the 
minor home modification; 
(2) document the necessity for the minor home modification; 
(3) obtain written specifications for any minor home modification expenditure 
costing $1,000 or more which will be used to procure bids and validate the 
completed job. Written specifications must be obtained from an individual with 
experience in home modifications. These specifications are reimbursable as part 
of the invoice cost of a minor home modification up to a maximum of $200. The 
provider must maintain documentation to support the cost for developing the 
specifications. The individual who developed the specifications may bid on the 
completion of the minor home modification; 
(4) obtain a minimum of three written bids based on the specifications for any 
project expenditure costing $1,000 or more; 
(5) select a bidder to provide the modification and document the reason for 
selecting the bid including cost, completion time of modification, record of 
quality service, timely response to repair requests, and warranties; and 
(6) inspect the minor home modification for completion, compliance with the 
written specifications, if applicable, and quality of workmanship within seven 
Texas Department of Human Services (DHS) work days from the date the work is 
completed. The inspection requirements are as follows: 
(A) The DSA must ensure that a qualified person inspects completed work to 
ensure all work was done to written specifications, if applicable, and the Texas 
Accessibility Standards. 
(B) The inspection may be performed by the individual preparing the 
specifications, but not by the contractor who completed the home modification 
nor by the attendant. The invoice cost of the inspection is reimbursable as a 
minor home modification up to a maximum of $150. The provider must maintain 
documentation to support the cost for performing the inspections. 
(C) Once the inspection is concluded and the modification is completed, the DSA 
must send the case information form to the case manager within seven DHS work 
days after completion of the inspection. The minor home modification must pass 
inspection before the provider bills DHS for the costs of labor and completion. 
The cost of building materials may be billed separately before completion. 

sec.45.321.Time Frames for Minor Home Modifications Costing $1,000 or More.
(a) The Community Living Assistance and Support Services direct services agency 
(DSA) is responsible for assuring the completion of all minor home modifications 
within 60 Texas Department of Human Services (DHS) work days from the date the 
minor home modification is authorized, counting from either the effective date 
of the individual service plan form, or the date the form is received, whichever 
is later. 
(b) A 90% compliance level is required. The provider must notify the participant 
and case manager of any delay with a new proposed date for delivery. The 
notification must be provided on or before the 60th DHS work day following 
authorization. 

sec.45.323.Time Frames for Minor Home Modifications Costing Less Than $1,000.
(a) The direct services agency (DSA) is responsible for assuring the completion 
of all minor home modifications within 60 Texas Department of Human Services 
(DHS) work days from the date the minor home modification is authorized, 
counting from either the effective date of the individual service plan form, or 
the date the form is received, whichever is later. 
(b) A 90% compliance level is required. The provider must notify the participant 
and case manager of any delay with a new proposed date for delivery. The 
notification must be provided on or before the 30th DHS work day following 
authorization.

sec.45.325.Landlord Approval for Minor Home Modifications.
Prior to beginning the home modifications, the direct services agency must 
obtain written approval from the owner of the building for the proposed 
modifications if the rental agreement does not provide such approval. 
Additionally, all applicable building permits must be obtained prior to starting 
the home modifications.

sec.45.327.Accountability for Minor Home Modifications.
If a minor home modification requires repair or replacement within one year of 
completion, the Community Living Assistance and Support Services direct services 
agency must repair or replace the minor home modification without billing the 
Texas Department of Human Services or the participant, except when: 
(1) the finished modification met appropriate specifications and bid 
requirements agreed upon before the job was started; or 
(2) the repair or replacement is required due to circumstances beyond the 
control of the participant or participant's family members, or due to abuse by 
the participant or family members. 

sec.45.331.Billable Units.
The following activities may be billed through the Community Living Assistance 
and Support Services (CLASS) program by direct services agency (DSA) providers.
(1) Nursing services: 
(A) direct participant contact; 
(B) participation on the interdisciplinary team (IDT): 
(i) when the participant has an identified need for the service; and 
(ii) for actual time spent in the capacity of the respective discipline. Time 
spent as the official representative of DSA must be billed as habilitation; 
(C) time spent in providing nursing tasks that had been delegated to an 
attendant in order to prevent a service break, if no attendant can be found; 
(D) time spent in training family members, neighbors, and other informal support 
providers to provide needed nursing or personal care tasks; 
(E) time spent in performing the annual reassessment, which includes actual 
participant contact and documentation of assessment forms and care plan; 
(F) time spent in performing assessments and developing written specifications 
for adaptive aids; and 
(G) follow-up orientation visit following delivery of adaptive aids. 
(2) Specialized therapy (occupational therapy, physical therapy, speech 
pathology): 
(A) direct participant contact; 
(B) development of written bid specifications; 
(C) follow-up orientation visit following delivery of adaptive aid; and 
(D) participation on the IDT: 
(i) when the participant has an identified need for the service; and 
(ii) for actual time spent in the capacity of the respective discipline. Time 
spent as the official representative of the DSA must be billed as habilitation. 
(3) Habilitation services, which include: 
(A) assisting with the performance of personal care tasks; 
(B) performing delegated health-related tasks; 
(C) training the participant to perform the activities of daily living as 
identified in the habilitation plan; 
(D) providing reinforcement of therapy goals; 
(E) participating in IDT meetings; 
(F) accompanying the participant to habilitative activities as listed in the 
participant's individual program plan; and 
(G) performing chores services for the participant. 
(4) Billable items for medical supplies include the invoice cost, including 
freight charges and sales tax, of the medical supply and the requisition fee. 
(5) Billable items for minor home modifications include the invoice cost of 
labor, materials, sales tax, actual cost of specification development up to 
$200, actual cost of inspection up to $150, and the requisition fee. 
(6) Billable items for adaptive aids include the invoice cost of the item, 
including freight charges and sales tax, actual cost of development of written 
bid specifications for computer assistive technology, environmental controls and 
augmentative communication devices, and the follow up/orientation visit by the 
professional knowledgeable of these items, and the requisition fee. 
(7) In-home respite - relief for the unpaid primary caregiver. 
(8) Out-of-home respite - relief for the unpaid primary caregiver. 

sec.45.333.Non-Billable Time and Activities.
The following activities are not considered billable activities under the 
Community Living Assistance and Support Services (CLASS) program for direct 
services agency (DSA) providers: 
(1) supervision of habilitation attendants performing personal assistance tasks, 
unless the attendant is delivering nursing tasks delegated by a registered 
nurse; 
(2) phone calls, letters, or meetings with the Texas Department of Human 
Services (DHS) or community resources; 
(3) administrative meetings or staff meetings; 
(4) in-service training, continuing education, or conferences; 
(5) employee conferences or evaluations; 
(6) filing claims for services; 
(7) traveling to and from the participant's home; 
(8) processing paperwork, completing records or reports, except for the annual 
reassessment; 
(9) home modifications or adaptive aids/vehicular modifications that are not 
listed in the CLASS Provider Manual as covered items nor approved
by authorized DHS staff; 
(10) collateral contact when that contact is between provider employees and 
individuals providing services to participants under personal service agreements 
or subcontracts with the CLASS provider agency;
(11) billing for services that are considered to be duplicate services or 
mutually exclusive, as identified in sec.45.335 of this title (relating to 
Mutually Exclusive Services); 
(12) "down-time" such as illness, holidays, vacation time, etc; 
(13) collateral contact (telephone or face-to-face) to assist or discuss a 
specific participant (for example, helping access community services); and 
(14) leaving a phone message on a recorder, or leaving a message with anyone 
other than the participant or parent/legal guardian.

sec.45.335.Mutually Exclusive Services.
The following waiver services are considered to be mutually exclusive and are 
not allowed under the waiver: 
(1) A participant receiving in-home respite or out-of-home respite may not 
receive habilitation for the same period of time. 
(2) A participant residing in an institutional setting may not receive any 
Community Living Assistance and Support Services (CLASS) services. 
(3) CLASS cannot provide a service that is available to the participant through 
a non- waiver source in a timely manner. 
(4) A participant cannot receive any direct services agency (DSA) service 
reimbursed through the CLASS program from two provider agencies on the same 
date. 

sec.45.337.Service Claim Limits. 
(a) In order to avoid service breaks, the Community Living Assistance and 
Support Services direct services agency may bill for authorized habilitation 
units performed by a licensed nurse for a maximum period of 10 hours during the 
participant's individual service plan effective period. 
(1) The hours performed by the nurse may be billed at the nursing rate only if 
there are no attendants available to perform the needed delegated nursing tasks 
and only licensed nurses can be recruited. 
(2) The documentation must include all efforts the provider agency made to find 
an attendant to deliver delegated nursing tasks to prevent a break in service. 
(b) Components of minor home modifications cannot be billed without an invoice 
or in more than two billings. 

sec.45.339.Claims and Service Delivery Records. 
(a) The Community Living Assistance and Support Services (CLASS) direct services 
agency (DSA) is liable for monetary exceptions if the monthly claims do not 
correspond with the provider's service authorization and service delivery 
records. 
(b) The provider must maintain the following records: 
(1) approval of application of CLASS form; 
(2) CLASS individual service plan form, pages 1 and 2; 
(3) CLASS documentation of services delivered form for any billing submitted for 
reimbursement or a facsimile previously approved by the waiver manager; 
(4) bids for home modifications costing $500 or more; 
(5) bids for any single expenditure for adaptive aids/vehicle modifications 
costing $500 or more and comparative price quotes or a price list; 
(6) annual comparative price quotes/lists for the purchase of medical supplies; 
(7) annual comparative price quotes/lists for the purchase of adaptive aids; 
(8) receipts from the contractor for minor home modifications provided, 
documenting the date of completion and the cost of the modification; 
(9) any applicable building permits; 
(10) documentation of completion of purchase; 
(11) specifications for minor home modifications; 
(12) receipts for the completed minor home modification from the CLASS direct 
services agency (DSA). The minor home modification must be completed before 
billing the Texas Department of Human Services for the modification and: 
(A) the DSA must attest that the workmanship is acceptable; 
(B) the DSA must attest that the modification is completed according to the 
specifications of the bid, if applicable; 
(C) the CLASS documentation of services delivered form must be signed by the DSA 
representative; 
(D) a final inspection sheet must be signed by the participant or the 
responsible party, the DSA representative and an inspector, stating that the 
home modifications were completed in accordance to the specification sheet; and
(E) document whether or not the participant is satisfied with the home 
modification; 
(13) if using price lists/price quotes, documentation of the basis of the annual 
selection of a supplier; 
(14) copies of case information forms sent to the case manager upon completion 
of the minor home modification; 
(15) receipts for the purchase of adaptive aids/vehicle modifications showing 
the cost of the item, the date the item was delivered to the participant, and 
signed confirmation delivery by the participant or responsible party; 
(16) written approval from the homeowner for modifications to be made; (17) 
documented justification for not accepting the lowest bids or quotes for 
adaptive aids, medical supplies, vehicle modifications or minor home 
modifications, where applicable; and 
(18) documentation of the basis of the annual selection of a supplier if using 
price lists/price quotes.

sec.45.341.Monetary Exceptions.
The Community Living Assistance and Support Services (CLASS) services direct 
services agency must document on the CLASS documentation of services delivered 
form or an approved facsimile for services reimbursed on an hourly basis as 
authorized on the individual service plan. 

sec.45.343.Unallowable Services.
The Community Living Assistance and Support Services program does not provide 
the following items to participants: 
(1) purchase or long-term lease of vehicles, or vehicle repair and/or 
maintenance; 
(2) past due expenses; 
(3) income taxes; 
(4) automobile, life, or accident insurance; 
(5) death benefits, burial policies, or funeral expenses; 
(6) costs for allowable services that have not been prior authorized; 
(7) food, shelter, utilities, general home repairs, electrical upgrades from 110 
volt to 220 volt outlets, major home renovations, remodeling, home furnishings, 
and yard work; 
(8) items or services available through by other third-party resources such as 
private insurance, Medicare or other Medicaid benefits, Texas Rehabilitation 
Commission, or Texas Education Agency; 
(9) school tuition or fees, or equipment/items/services that are provided 
through the public school system; or 
(10) swimming pools or swimming pool repairs, maintenance, or supplies.
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 July 28, 1998.
TRD-9811921
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: September 1, 1998
Proposal publication date: February 6, 1998
For further information, please call: (512) 438-3765

SUBCHAPTER D.Fiscal Monitoring
40 TAC sec.sec.45.401, 45.403
The new sections are adopted under the Human Resources Code, Title 2, Chapters 
22 and 32, which authorizes the department to administer public and medical 
assistance programs and under Texas Government Code sec.531.021, which provides 
the Health and Human Services Commission with the authority to administer 
federal medical assistance funds. 
The new sections implement the Human Resources Code, sec.sec.22.001-22.030 and 
sec.sec.32.001-32.042. 

sec.45.401.Administrative Errors.
A recoupment of 12% of the paid unit rate is the administrative error exception 
for services billed on an hourly basis. It represents the administrative portion 
of the rate. Administrative errors are applied to the documentation reviewed and 
are not extrapolated. Administrative errors include, but are not limited to, the 
items in paragraph (1)-(2) of this section: 
(1) Administrative errors on documentation of services delivered form or the 
prior approved facsimile: 
(A) The provider agency leaves the month and year of service blank. The Texas 
Department of Human Services (DHS) applies the error to the total number of 
units documented on the time sheet. 
(B) The timekeeper fails to enter a date of signature to certify the total 
number of hours the attendant, nurse, or therapist worked. DHS applies the error 
to the total number of units documented on the time sheet. 
(C) The timekeeper corrects the date of signature but fails to initial the 
correction. DHS applies the error to the number of units reimbursed after the 
earliest signature date. 
(D) The timekeeper enters an illegible date of signature or makes an illegible 
correction to the date. DHS applies the error to the total number of units 
documented on the time sheet. 
(E) The timekeeper enters a date of signature that is before the date of the 
last day services are delivered. DHS applies the error to the total number of 
units reimbursed after the signature date. 
(F) The timekeeper fails to sign the time sheet. DHS applies the error to the 
total number of units documented on the time sheet. 
(G) The timekeeper uses a signature stamp, but fails to initial the stamped 
signature. DHS applies the error to the total number of units documented on the 
time sheet. 
(H) The attendant, nurse, therapist, other professional, and/or timekeeper uses 
liquid paper/correction fluid to correct an entry in the record of time, 
signature, or date portion of the time sheet. DHS applies the error to the total 
number of units documented on the time sheet. If the liquid paper/correction 
fluid is used only on a daily entry in the record of time, DHS applies the error 
only to the total number of units reimbursed for that day. 
(I) The attendant, nurse, therapist, other professional, and/or timekeeper makes 
an illegible entry in or an illegible correction to any portion of the record of 
time column. DHS applies the error to the total number of units reimbursed for 
the days in which entries are illegible. 
(J) The attendant fails to initial an increase in the daily time or the monthly 
total of hours for the pay period. DHS applies the error to the number of units 
reimbursed in excess of the original entry. 
(K) The attendant, nurse, therapist, other professional, or other agency 
representative fails to sign the documentation of services delivered form or 
approved facsimile. DHS applies the error to the total number of units 
documented on the time sheet. 
(L) The provider agency uses a form that has not been approved by DHS. DHS 
applies the error to the total number of units reimbursed while using something 
other than documentation of services delivered form or an approved facsimile. 
(M) DHS reimburses the provider agency for nursing, therapies, psychological, 
habilitation, out-of-home respite, in-home respite, adaptive aids/vehicle 
modifications or home modifications but a valid authorization individual service 
plan (ISP) form, pages 1-2 and all pertinent attachments signed by the case 
manager, are missing for the period reimbursed to the agency. DHS applies the 
error to the total number of units of nursing, psychological therapies, 
habilitation, out-of-home respite, in-home respite, and adaptive aids/vehicular 
modifications claimed and not covered by an valid ISP. 
(N) DHS reimburses the provider agency for nursing services, and there is no 
other documentation available that the nurse provided billable nursing services 
during the visit. 
(2) The following items are administrative errors resulting in recoupment of the 
entire requisition fee. 
(A) There is no Community Living Assistance and Support Services documentation 
of completion of services delivered, but there is a receipt for the purchase of 
adaptive aids/vehicle modifications or the completion of the minor home 
modification. 
(B) Bids were required for the purchase of an adaptive aid/vehicle modification 
or the completion of a minor home modification and bids were not solicited.
(C) DHS reimburses the provider for the purchase of medical supplies, but there 
is no documentation available that price list/price quotes were obtained from 
three suppliers for the items for which the provider has been reimbursed or the 
price list/price quotes were obtained more than 12 months before the purchase. 
(D) DHS reimburses the provider for the purchase of adaptive aids, but there is 
no documentation available that price list/price quotes were obtained from three 
suppliers for the items for which the provider has been reimbursed or there is 
no documentation available that the supplier selected on an annual basis to 
deliver the adaptive aids had the lowest prices for the main type of adaptive 
aids the agency has purchased. 
(3) Administrative errors for the case management agency (CMA) include, but are 
not limited to, the following: 
(A) The case management agency does not provide a completed ISP and an updated 
individual program plan within seven days from an interdisciplinary team meeting 
which results in the DSA providing services that at a later date are rejected 
because the CMA failed to submit the ISP for DHS authorization. 
(B) The DSA has the case information form on record which indicates that the DSA 
had requested corrected service updates be made to the participant's ISP prior 
to providing the service and the CMA provided authorization for that service on 
the case information form but failed to submit a corrected ISP for DHS 
authorization. 

sec.45.403.Financial Errors.
A reduction of 100% of the paid unit rate is the financial error exception. This 
exception is applied to the unit(s) of service on the documentation reviewed in 
the Community Living Assistance and Support Services (CLASS) program. This 
exception is not extrapolated. Financial errors include, but are not limited to, 
the following: 
(1) The Texas Department of Human Services (DHS) reimburses the provider agency 
for services, but the CLASS documentation of services delivered form, or 
approved facsimile, is missing for the period for which services are reimbursed. 
DHS applies the error to the total number of units documented on the time sheet. 
(2) The attendant, nurse, therapist, or other professional leaves the entire 
record of time section blank. DHS applies the error to the total number of units 
documented on the time sheet. 
(3) DHS reimburses the provider agency for hours that exceed the authorization 
given by DHS. DHS applies the error to the total number of units reimbursed in 
excess of the units authorized by DHS, unless purchased following emergency 
procedures. 
(A) For nursing services, the maximum that may be reimbursed is the number of 
hours listed under "Nursing Services" in the ISP form. 
(B) For habilitation services, the maximum that may be reimbursed for a month is 
the monthly amount authorized on the CLASS Individual Service Plan/Individual 
Program Plan (ISP/IPP) plus any hours not used due to participant stay while in 
a hospital or in a rehabilitation hospital. 
(4) DHS reimburses the provider agency for any waiver service that is not 
identified on the participant's ISP form and attachments, unless the service was 
provided as a result of an emergency and is supported by back-up documentation 
within seven DHS work days from the date the emergency was determined. 
(5) DHS reimburses the provider agency for hours that exceed the total number of 
hours recorded on the documentation of services delivered form or approved 
facsimile. DHS applies the error to the total number of units reimbursed in 
excess of the units recorded on the time sheet. If the sum of the daily total of 
hours does not equal what is written in the monthly total blank, the lesser of 
the two totals is used to calculate the total number of hours subject to the 
error. 
(6) DHS reimburses the provider agency for nursing, physical therapy, 
occupational therapy, or speech pathology services, but a valid physician's 
order is missing. DHS applies the error to the total number of units claimed and 
not covered by a valid order. 
(7) DHS reimburses the provider agency for a claim for service, other than the 
initial administrative fee, delivered prior to the eligibility effective date on 
the ISP form. DHS applies the error to the total number of units reimbursed for 
such services that were delivered before the effective date on the form. 
(8) DHS reimburses the provider agency for any hours that consisted of non-
billable time and activities as identified in sec.45.333 of this title (relating 
to Non-Billable Time and Activities). DHS applies the error to the total number 
of units reimbursed for such services. 
(9) DHS reimburses the provider agency for more than fours hours of nursing used 
to decide whether to delegate to the direct services agency attendant. DHS 
applies the error to the total number of units reimbursed for such services. 
(10) DHS reimburses the provider agency for more than 10 hours during the 
participant's ISP year for nursing services being performed by a nurse to 
prevent service breaks caused by the attendant not being available to provide 
delegated nursing tasks. DHS applies the error to the total number of units 
reimbursed in excess of the 10 hour maximum for such services. 
(11) DHS reimburses the provider agency for an amount in excess of the amount 
documented on the invoice/receipt for adaptive aids/vehicle modifications or 
minor home modifications. DHS applies the error to the total number of dollars 
reimbursed in excess of the amount on the invoice/receipt, plus the appropriate 
dollar amount of the requisition fee, if applicable. 
(12) If there is no invoice/receipt for the purchase of adaptive aids/vehicle 
modifications or for the completion of minor home modifications for which the 
provider has been reimbursed, DHS applies the error to the total dollar amount 
reimbursed for adaptive aids/vehicle modifications or minor home modifications 
in question, including the requisition fee. 
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 July 28, 1998.
TRD-9811922
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: September 1, 1998
Proposal publication date: February 6, 1998
For further information, please call: (512) 438-3765

CHAPTER 48. Community Care for Aged and Disabled
SUBCHAPTER J. 1915(c) Medicaid Home and Community-based Waiver Services for Aged 
and Disabled Adults Who Meet Criteria for Alternatives to Nursing Facility Care
40 TAC sec.sec.48.6050, 48.6052, 48.6054, 48.6056, 48.6058, 48.6060, 48.6062, 
48.6066, 48.6068, 48.6070, 48.6072, 48.6074, 48.6076, 48.6078, 48.6080, 48.6082, 
48.6084, 48.6086, 48.6088, 48.6090
The Texas Department of Human Services (DHS) adopts new sec.sec.48.6050, 
48.6052, 48.6054, 48.6056, 48.6058, 48.6060, 48.6062, 48.6066, 48.6068, 48.6070, 
48.6072, 48.6074, 48.6076, 48.6078, 48.6080, 48.6082, 48.6084, 48.6086, 48.6088, 
and 48.6090 in its Community Care for Aged and Disabled chapter. New 
sec.sec.48.6052, 48.6054, 48.6056, 48.6058, 48.6066, 48.6068, 48.6070, 48.6072, 
48.6074, 48.6076, 48.6078, 48.6084, 48.6088, and 48.6090, are adopted with 
changes to the proposed text published in the February 6, 1998, issue of the 
Texas Register (23 TexReg 931). New sec.sec.48.6050, 48.6060, 48.6062, 48.6080, 
48.6082, and 48.6086 are adopted without changes to the proposed text and will 
not be republished. DHS is withdrawing the proposal to amend sec.48.6003, and 
new sec.sec.48.6041, 48.6042, 48.6044, 48.6046, 48.6048, and 48.6064 which were 
proposed at the same time. Major revisions made due to comments received and 
recommendations from the workgroup prompted the need to withdraw these rules. 
DHS will repropose these rules with the revisions at a later date. 
The justification for the new sections is to improve the quality, 
appropriateness, timeliness, and cost-effectiveness of adaptive aids and minor 
home modifications purchased through the Community Based Alternatives program. 
These rules require detailed specifications for major purchases, add 
requirements for obtaining bids and inspections of completed home modifications, 
providing orientation and training in the use of adaptive aids, and establish 
time frames for delivery and completion. Current policies governing the purchase 
of these items have not been promulgated as rules. The justification for the new 
sections regarding fiscal monitoring is to assure that providers maintain 
adequate and appropriate documentation to support the payment of claims for 
services rendered. Currently, the department has no rules requiring fiscal 
monitoring of Home and Community Support Services agencies contracted with the 
department to provide Community Based Alternatives services. These rules define 
the documentation requirements and establish financial and administrative errors 
subject to recoupment. The proposed rules specify that the department will 
recoup 100% of the paid unit rates in the sample with financial errors and 12% 
of the paid unit rates in the sample with administrative errors. 
The department will provide training and courtesy reviews to providers. 
Providers have the right to appeal any adverse actions including recoupment 
through the department's Formal Hearing rules found in 40 TAC 79, Subchapter Q. 
The new sections will function to improve the quality, timeliness, and cost-
effectiveness of adaptive aids and minor home modifications purchased through 
the Community Based Alternatives program. It will also improve the accuracy and 
completeness of the provider's documentation by providing a financial incentive 
for providers to maintain proper documentation and promote internal quality 
controls to assure proper documentation for billing and payment records.
The department received comments on the proposed rules during the comment period 
and at a public hearing. Comments were received from Girling Home Health, 
Outreach Health Services, the Arc of Texas, North Central Texas Home Care, and 
several individuals. A workgroup composed of consumers, advocates, and providers 
reviewed and provided comments also. A summary of the comments and DHS's 
responses follow: 
Comment: The workgroup recommended an addition to the documentation requirements 
for selection of adaptive aids to clarify that consumer preference alone is not 
sufficient justification for purchasing a more expensive item. 
Response: The department agrees and has added this language to 
sec.48.6052(a)(5).
Comment: The workgroup recommended changing the time frame for verifying that 
adaptive aids meet the needs of the participants from 14 DHS work days from date 
of delivery to 10 DHS work days and to add agency staff involved in the 
procurement as one of the people who could verify consumer satisfaction and 
completion of purchase. If additional orientation/training/adjustments are 
needed, a home visit will be conducted by a therapist, nurse, or durable medical 
equipment vendor. If the home visit is conducted by a therapist or nurse, the 
visit is reimbursed at the hourly rate for nursing or therapy services.
Response: The department agrees and has added this language to 
sec.48.6052(a)(6).
Comment: The workgroup recommended adding licensed physicians, nurses, and 
rehabilitation engineers to the list of appropriate professionals who can 
provide written specifications for adaptive aids costing $500 or more.
Response: The department agrees and has added this language to 
sec.48.6052(b)(1).
Comment: Numerous comments were received recommending provider reimbursement for 
the requirement to obtain written specifications for adaptive aids costing more 
than $500 and minor home modifications costing more than $1,000. 
Response: The department agrees and has added language in sec.sec.48.6052(b)(1) 
and 48.6068(3) to clarify that providing assessments and obtaining written 
specifications is reimbursable as a therapy or nursing service if performed by a 
therapist or nurse. If another appropriate professional is required to provide 
the assessment and develop specifications for computer assistive technology, 
environmental controls, or augmentative communication devices, the actual cost 
of writing the specifications and the follow-up orientation/training is 
reimbursed as part of the invoice cost up to a maximum of $500. Written 
specifications for home modifications are reimbursed as part of the invoice cost 
up to a maximum of $200. Providers must maintain documentation to support the 
cost of developing the specifications. 
Comment: Several comments were received regarding the time frames proposed for 
delivering adaptive aids and minor home modifications. The workgroup recommended 
adding a compliance standard of 90% to the proposed time frames with a 
requirement to notify the participant regarding any delays. 
Response: The department agrees and has added the 90% compliance standard for 
meeting required time frames to subsection (b) in sec.sec.48.6054, 48.6056, 
48.6070, and 48.6072. 
Comment: Several comments were received recommending provider reimbursement for 
the requirement to perform inspections on all completed home modifications by a 
qualified individual. 
Response: The department agrees and has added language in sec.48.6068(6)(B) to 
clarify that the invoice cost of performing the inspections on completed home 
modifications is reimbursed up to a maximum of $150. The provider must maintain 
documentation to support the cost for performing the inspections.
Comment: The workgroup recommended adding to the list of billable nursing and 
therapy services, time spent in developing written specifications for adaptive 
aids and performing home visits to orient and train consumers on the use of 
adaptive aids. 
Response: The department agrees and this language has been added to 
sec.48.6078(1)(G).
Comment: In sec.48.6084(c), the workgroup recommended changing the maximum 
number of installment billings that can be made for a minor home modification 
from three to two billings. 
Response: The department agrees and has made this change. 
Comment: Several commentors stated that the proposed rules seemed prescriptive 
in nature and did not think fiscal monitoring was necessary. 
Response: The department disagrees. These fiscal monitoring rules establish the 
documentation standards to support Medicaid reimbursement of claims paid to Home 
and Community Support Service agency providers and provide financial incentives 
for providers to comply with the standards. Compliance with the standards 
assists the department in meeting the federal assurances regarding financial 
accountability. 
Comment: One commentor asked whether recoupment related to fiscal monitoring was 
subject to due process. 
Response: Yes. Recoupment of funds due to financial and administrative errors is 
considered a provider sanction subject to appeal under the department's Formal 
Hearing procedures as specified in 40 TAC Chapter 79, Subchapter Q. These rules 
require written notice of the adverse action with information regarding the 
provider's right of appeal. 
Comment: Several comments recommended deleting the financial error specified in 
sec.48.6090(b)(3)(A) which limits the maximum monthly reimbursement for personal 
assistance services to 4.50 times the weekly number of authorized hours plus any 
unused hours due to hospital stays. Flexibility is needed to make monthly 
adjustments in service hours based on changes in individual needs.
Response: The department agrees and has deleted this limitation as a financial 
error. 
Comment: In sec.48.6090(b)(10), the workgroup recommended changing the limit of 
nursing services used to prevent service breaks from 10 days to 10 hours. 
Response: The department agrees and has made this change. 
Comment: In sec.48.6090(b)(11)-(12), the workgroup recommended adding the word 
"invoice" as documentation for purchase of adaptive aids, medical supplies, and 
minor home modifications. 
Response: The department agrees and has made this change. 
Comment: In sec.48.6090(a)(1)(N), the workgroup recommended re- wording for 
clarification regarding billable nursing services. 
Response: The department agrees and (N) has been revised to read: DHS reimburses 
the provider agency for nursing services and there is no other documentation 
available to determine whether the nurse provided billable nursing services 
during the visit. 
Comment: In sec.48.6090(a)(2)(B), the workgroup recommended revisions to clarify 
that bids were not solicited instead of obtained. 
Response: The department agrees and this section has been revised to read: Bids 
were required for purchase of adaptive aids or the completion of minor home 
modifications and bids were not solicited. 
The department has initiated changes in sec.sec.48.6052(a)(4), 48.6068(3), 
48.6068(5), 48.6068(6), 48.6058(6)(C), 48.6074, 48.6088, 48.6088(c), 48.6090, 
48.6090(a)(1)(A), 48.6090(a)(2)(C)-(D), and 48.6090(b)(3)-(4) that are editorial 
in nature. These rules were changed to add clarity and reduce duplication. The 
new sections are adopted under the Human Resources Code, Title 2, Chapters 22 
and 32, which authorizes the department to administer public and medical 
assistance programs; and under Texas Government Code sec.531.021, which provides 
the Health and Human Services Commission with the authority to administer 
federal medical assistance funds. 
The new sections implement the Human Resources Code, sec.sec.22.001-22.030 and 
sec.sec.32.001-32.042. 

sec.48.6052. Cost-Effective Purchases of Adaptive Aids. 
(a) For any single adaptive aid expenditure costing less than $500, the Home and 
Community Support Services (HCSS) agency must: 
(1) determine and document the needs and preferences of the participant for the 
adaptive aid; 
(2) document the necessity for the adaptive aid; 
(3) consider renting the adaptive aid on a short-term basis if the participant's 
needs or desires cannot be accurately determined at the time of the assessment; 
(4) obtain comparative price quotes or use a price list to document prices of 
the adaptive aid from a minimum of three suppliers or annually select a supplier 
based on the lowest prices from the quotes/price list for the main types of 
adaptive aids that the agency has been purchasing. Document in the vendor 
records the names of the suppliers from whom all quotes/price lists were 
obtained, the amount of the quotes/price lists, the items for which the 
quotes/price lists were requested, and the dates the quotes/price lists were 
obtained; 
(5) document the reason each selection is made, (examples are cost, delivery 
time of item, record of quality services, access to loaners during repairs, 
repair history, and warranty) or document the selection of an annual supplier. 
Participant preference alone is not sufficient justification for purchasing a 
more expensive item; and 
(6) have a nurse, therapist, or other appropriate agency staff that have been 
involved in the procurement contact the participant within 10 Texas Department 
of Human Services (DHS) work days of delivery to verify that the adaptive aid 
meets the needs of the participant, that orientation was provided to the 
participant in the use of the adaptive aid, and to document completion of 
purchase and satisfaction of the participant on the documentation of completion 
of purchase form. If additional orientation/training or adjustments to the 
adaptive aid are needed, a home visit will be conducted by a therapist, nurse, 
or durable medical equipment vendor. The follow-up home visit must be conducted 
within 14 DHS work days of awareness of the need for additional 
training/orientation or adjustments. If the home visit is conducted by a 
therapist or nurse, the home visit is reimbursed at the hourly rate for nursing 
or therapy services, depending on which professional provided the service. 
(b) For any single adaptive aid expenditure costing $500 or more, in addition to 
complying with the requirements listed in subsection (a) of this section, the 
HCSS agency must: 
(1) obtain written specifications for the adaptive aid from an appropriate 
professional including a licensed physician, nurse, occupational therapist, 
physical therapist, or speech pathologist. Other appropriate professionals, 
including rehabilitation engineers, may provide assessments and specifications 
for computer assistive technology, augmentative communication devices, or 
environmental controls. Providing assessments and obtaining written 
specifications is reimbursable as a nursing service if performed by a nurse and 
as a therapy service if performed by an occupational therapist, physical 
therapist, or speech pathologist and authorized on the individual service plan. 
If another appropriate professional is required to provide the assessment and 
develop the specifications for computer assistive technology, environmental 
controls, or augmentative communication devices, the actual cost of writing the 
specifications and the follow-up orientation/training visit is reimbursed as 
part of the invoice cost up to a maximum of $500. The provider must maintain 
documentation to support the cost of developing the specifications; 
(2) obtain a minimum of three written bids if not using price lists or price 
quotes as identified under subsection (a)(5) and (6) of this section, and 
document the reason for the selection including cost, delivery time of item, 
record of quality services, access to loaners during repairs, repair history, 
and warranties. 

sec.48.6054. Time Frames for Adaptive Aids Costing Less Than $500. 
(a) The Home and Community Support Services agency must purchase and ensure 
delivery of any adaptive aid within 14 Texas Department of Human Services (DHS) 
work days of being authorized to purchase the adaptive aid, counting from either 
the effective date of the individual service plan form or the date the form is 
received, whichever is later. 
(b) A 90% compliance level is required. The provider must notify the participant 
and case manager in writing of any delay, with a new proposed date for delivery. 
The notification must be provided on or before the 14th DHS work day following 
authorization. 

sec.48.6056. Time Frames for Adaptive Aids Costing $500 or More.
(a) The Home and Community Support Services agency must purchase and ensure 
delivery of any adaptive aid within 30 Texas Department of Human Services (DHS) 
work days of being authorized to purchase the adaptive aid, counting from either 
the effective date of the individual service plan form or the date the form is 
received, whichever is later. 
(b) A 90% compliance level is required. The provider must notify the participant 
and case manager of any delay, with a new proposed date for delivery. The 
notification must be provided on or before the 30th DHS work day following 
authorization. 

sec.48.6058. Cost-Effective Purchases of Medical Supplies. 
The Home and Community Support Services agency must: 
(1) prior to the selection of medical supplies, obtain comparative price quotes 
or use a price list to document prices of the medical supplies from a minimum of 
three suppliers or document the basis for selection and for those selected, 
document in the vendor records the names of the suppliers from whom all 
quotes/price lists were obtained, the amount of the quotes/price lists, the 
items for which the quotes/price lists were requested, and the dates the 
quotes/price lists were obtained; and 
(2) at least annually select supplies based on the lowest prices from the 
quotes/price list for the main types of supplies that the agency has been 
purchasing, and document the justification of the selection, including cost, 
delivery time of item, and record of quality services.

sec.48.6066. Freight Charges for Medical Supplies and Adaptive Aids. 
The Home and Community Support Services agency must assure that, if medical 
supplies or adaptive aids are delivered to the participant by means of any 
commercial carrier, such as United Parcel Services or United States Postal 
Service, the most cost effective carrier is used. Overnight delivery should not 
be used unless it is an emergency purchase that cannot be purchased locally and 
delivered by the next day after determining the need. 

sec.48.6068. Cost-Effective Purchases of Minor Home Modifications. 
The Home and Community Support Services (HCSS) agency must: 
(1) determine and document the needs and preferences of the participant for the 
minor home modification; 
(2) document the necessity for the minor home modification; 
(3) obtain written specifications for any minor home modification project 
expenditure costing $1,000 or more which will be used to procure bids and 
inspect the completed job. Written specifications must be obtained from an 
individual with experience in home modifications. These specifications are 
reimbursable as part of the invoice cost of a minor home modification up to a 
maximum of $200. The provider must maintain documentation to support the cost 
for developing the specifications. The individual who developed the 
specifications may bid on the completion of the minor home modification; 
(4) obtain a minimum of three written bids based on the written specifications 
for any project expenditure costing $1,000 or more; 
(5) select a bidder to provide the modification and document the reason for 
selecting the bid including cost, completion time of modification, record of 
quality service, timely response to repair requests, and warranties; and 
(6) inspect the minor home modification for completion, compliance with the 
written specifications, if applicable, and quality of workmanship within seven 
Texas Department of Human Services (DHS) work days of the work being completed. 
The inspection requirements are as follows:
(A) The HCSS provider must ensure that a qualified person inspects completed 
work to ensure all work was done according to written specifications, if 
applicable, and the Texas Accessibility Standards. 
(B) The inspection may be performed by the individual preparing the 
specifications, but not by the contractor who completed the home modification 
nor by the attendant. The invoice cost of the inspection is reimbursable as a 
minor home modification up to a maximum of $150. The provider must maintain 
documentation to support the cost for performing the inspections. 
(C) Once the inspection is concluded and the modification is completed, the HCSS 
provider must send a copy of the Community Based Alternatives documentation of 
completion of purchase form to the case manager within seven DHS work days after 
the completion of the inspection. The minor home modification must pass 
inspection before the provider bills DHS for the costs of labor and completion. 
The cost of building materials may be billed separately before completion. 

sec.48.6070. Time Frames for Minor Home Modifications Costing $1,000 or More.
(a) The Home and Community Support Services agency is responsible for assuring 
the completion of all minor home modifications within 60 Texas Department of 
Human Services (DHS) work days of being authorized to do the minor home 
modification, counting from either the effective date of the individual service 
plan form or the date the form is received, whichever is later. 
(b) A 90% compliance level is required. The provider must notify the participant 
and case manager of any delay, with a new proposed date for delivery. The 
notification must be provided on or before the 60th DHS work day following 
authorization. 

sec.48.6072. Time Frames for Minor Home Modifications Costing Less Than $1,000. 
(a) The Home and Community Support Services agency is responsible for assuring 
the completion of all minor home modifications within 30 Texas Department of 
Human Services (DHS) work days of being authorized to do the minor home 
modification, counting from either the effective date of the individual service 
plan form or the date the form is received, whichever is later. 
(b) A 90% compliance level is required. The provider must notify the participant 
and case manager of any delay, with a new proposed date for delivery. The 
notification must be provided on or before the 30th DHS work day following 
authorization. 

sec.48.6074. Landlord Approval for Minor Home Modifications. 
Prior to beginning the home modifications, the Home and Community Support 
Services (HCSS) agency must obtain written approval from the owner of the 
building for the proposed modifications if the rental agreement does not provide 
such approval. Additionally, all applicable building permits must be obtained 
prior to starting the home modifications. 

sec.48.6076. Accountability for Minor Home Modifications. 
If the minor home modifications require repair or replacement within one year of 
completion, the Home and Community Support Services agency must repair or 
replace the minor home modification without billing the Texas Department of 
Human Services or the participant, except when: 
(1) the finished modification met appropriate specifications and bid 
requirements agreed upon before the job was started; or 
(2) the repair or replacement is required due to circumstances beyond the 
control of the participant or participant's family members, or due to abuse 
caused by the participant or family members. 

sec.48.6078. Billable Units. 
The following activities may be billed as Community Based Alternatives (CBA) 
services by Home and Community Support Services agencies: 
(1) Nursing services: 
(A) direct participant contact; 
(B) participation on the interdisciplinary team (IDT); 
(C) time spent in delegating, training, and supervising personal care 
attendants, Adult Foster Care providers, and provider substitutes in the 
delivery of nursing tasks that have been delegated; 
(D) time spent in providing nursing tasks that had been delegated to an 
attendant in order to prevent a service break, if no attendant can be found; 
(E) time spent in training family members, neighbors, and other informal support 
providers to provide needed nursing or personal care tasks; 
(F) time spent in performing the annual reassessment or Texas Index for Level of 
Effort resets which include actual participant contact and documentation of 
assessment forms and care plan; 
(G) time spent in performing assessments and developing written specifications 
for adaptive aids; and 
(H) follow-up orientation visit following delivery of adaptive aids. 
(2) Specialized therapy services (occupational therapy, physical therapy, and 
speech pathology): 
(A) direct participant contact; 
(B) development of written bid specifications; 
(C) follow-up/orientation visit following delivery of adaptive aid; and 
(D) participation on the IDT. 
(3) Personal assistance services: 
(A) direct participant contact to provide personal care and nursing tasks that 
have been delegated; and 
(B) participation on the IDT. 
(4) Billable items for medical supplies include the invoice cost, including 
freight charges and sales tax, of the medical supply and the requisition fee. 
(5) Billable items for minor home modifications include the invoice cost of 
labor, materials, sales tax, actual cost of specification development up to 
$200, actual cost of inspection up to $150, and the requisition fee. 
(6) Billable items for adaptive aids include the invoice cost of the item, 
including freight charges and sales tax, actual cost of development of written 
bid specifications for computer assistive technology, environmental controls and 
augmentative communication devices, and the follow-up/orientation visit by the 
professional knowledgeable of these items, up to $500 of the cost of the item, 
and the requisition fee. 
(7) In-Home Respite Care - relief of the unpaid primary caregiver. 

sec.48.6084. Service Claim Limits.
(a) A maximum of four hours may be billed under nursing services by the 
registered nurse to decide whether or not to delegate a nursing task to an adult 
foster care provider. 
(b) In order to avoid service breaks, the Home and Community Support Services 
agency may bill for authorized personal assistance services hours performed by a 
licensed nurse, for a maximum period of 10 hours during the participant's 
individual service plan effective period. 
(1) The hours performed by the nurse may be billed at the nursing rate, only if 
there are no attendants available to perform the needed delegated nursing tasks 
and only licensed nurses can be recruited. 
(2) The documentation must include all efforts the provider agency made in order 
to find an attendant to deliver delegated nursing tasks in order to prevent a 
break in service. 
(c) Components of minor home modifications cannot be billed without an invoice 
or in more than two billings. 

sec.48.6088. Required Documentation for Service Delivery. 
(a) Providers of Home and Community Support Services (HCSS) services must 
document on the documentation of service delivery form, or an approved 
facsimile, that services reimbursed on an hourly basis are provided as 
authorized on the notification of Community Based Alternatives services form and 
identified on the individual service plan, including: 
(1) type of service delivered; 
(2) units of service delivered; 
(3) dates of service delivery; and 
(4) name of the individual providing waiver services. 
(b) If documentation does not support the monthly claims, the HCSS agency may be 
liable for monetary exceptions. 
(c) The HCSS agency must designate a timekeeper to verify that the hours 
recorded on the time sheet were worked and that the tasks assigned were 
completed. The timekeepers may be any person designated by the agency. 
(d) The employee must enter the daily total time and monthly total hours. An 
employee who is unable to complete and sign the time sheet may designate another 
person to complete and sign the time sheet. The HCSS agency must document in 
writing the reasons the employee is unable to complete and sign the time sheet 
and must document in writing who is authorized to make these entries. The 
documentation may be a written statement that includes the following: 
(1) the employee's name; 
(2) a brief summary of what portion of the time sheet the employee is unable to 
complete; 
(3) the name and relationship of the person who has been designated to complete 
the form for the employee; and 
(4) the timekeeper's signature and date. The timekeeper may add the monthly 
total of time with no exception taken, as long as the employee completes the 
daily total time. 

sec.48.6090. Fiscal Monitoring and Recoupment.
(a) Administrative errors. A recoupment of 12% of the paid unit rate is the 
administrative error exception for services billed on an hourly basis. It 
represents the administrative portion of the rate. Administrative errors are 
applied to the documentation reviewed and are not extrapolated. Administrative 
errors include, but are not limited to, the items in paragraphs (1)-(2) of this 
subsection: 
(1) administrative errors on the documentation of services delivered form or the 
prior approved facsimile: 
(A) The provider agency leaves the month and year of service blank. The Texas 
Department of Human Services (DHS) applies the error to the total number of 
units documented on the time sheet. 
(B) The timekeeper fails to enter a date of signature to certify the total 
number of hours the attendant, nurse, or therapist worked. DHS applies the error 
to the total number of units documented on the time sheet. 
(C) The timekeeper corrects the date of signature, but fails to initial the 
correction. DHS applies the error to the number of units reimbursed after the 
earliest signature date. 
(D) The timekeeper enters an illegible date of signature or makes an illegible 
correction to the date. DHS applies the error to the total number of units 
documented on the time sheet. 
(E) The timekeeper enters a date of signature that is before the date of the 
last day services are delivered. DHS applies the error to the total number of 
units reimbursed after the signature date. 
(F) The timekeeper fails to sign the time sheet. DHS applies the error to the 
total number of units documented on the time sheet. 
(G) The timekeeper uses a signature stamp, but fails to initial the stamped 
signature. DHS applies the error to the total number of units documented on the 
time sheet. 
(H) The attendant, nurse, therapist, and/or timekeeper uses liquid 
paper/correction fluid to correct an entry in the record of time, signature, or 
date portion of the time sheet. DHS applies the error to the total number of 
units documented on the time sheet. If the liquid paper/correction fluid is used 
only on a daily entry in the record of time, DHS applies the error only to the 
total number of units reimbursed for that day. 
(I) The attendant, nurse, therapist, and/or timekeeper makes an illegible entry 
in or an illegible correction to any portion of the record of time column. DHS 
applies the error to the total number of units reimbursed for the days in which 
entries are illegible. 
(J) The attendant fails to initial an increase in the daily time or the monthly 
total of hours for the pay period. DHS applies the error to the number of units 
reimbursed in excess of the original entry. 
(K) The attendant, nurse, therapist, or other agency representative fails to 
sign the documentation of services delivered form or approved facsimile. DHS 
applies the error to the total number of units documented on the time sheet. 
(L) The provider agency uses a form that has not been approved by DHS. DHS 
applies the error to the total number of units reimbursed while using something 
other than documentation of services delivered form or an approved facsimile. 
(M) DHS reimburses the provider agency for nursing, therapies, personal 
assistance services, or in-home respite, but a valid individual service plan, 
pages 1-3 and all pertinent attachments, signed by the case manager, is missing 
for the period reimbursed by the agency. DHS applies the error to the total 
number of units of nursing, therapies, personal assistance services, or in-home 
respite, claimed and not covered by a valid individual service plan. 
(N) DHS reimburses the provider agency for nursing services and there is no 
other documentation available to determine whether the nurse provided billable 
nursing services during the visit. 
(2) The following items are administrative errors resulting in recoupment of the 
entire requisition fee: 
(A) There is no Community Based Alternatives documentation of completion of 
purchase form, but there is a receipt for the purchase of adaptive aids, medical 
supplies, or for the completion of the minor home modification. 
(B) Bids were required for the purchase of an adaptive aid or the completion of 
a minor home modifications and bids were not solicited. 
(C) DHS reimburses the provider agency for the purchase of medical supplies, but 
there is no documentation available that price list/price quotes were obtained 
from three suppliers for the items for which the provider has been reimbursed or 
the price list/price quotes were obtained more than 12 months before the 
purchase.
(D) DHS reimburses the provider agency for the purchase of adaptive aids, but 
there is no documentation available that price list/price quotes were obtained 
from three suppliers for the items for which the provider has been reimbursed or 
there is no documentation available that the supplier selected on an annual 
basis to deliver the adaptive aids had the lowest prices for the main type of 
adaptive aids the agency has purchased. 
(b) Financial errors. A reduction of 100% of the paid unit rate is the financial 
error exception. This exception is applied to the units of service on the 
documentation reviewed. This exception is not extrapolated. Financial errors 
include, but are not limited to, the following: 
(1) DHS reimburses the provider agency for services, but the documentation of 
services delivered form, or approved facsimile, is missing for the period for 
which services are reimbursed. DHS applies the error to the total number of 
units documented on the time sheet. 
(2) The attendant, nurse, or therapist leaves the entire record of time section 
blank. DHS applies the error to the total number of units documented on the time 
sheet. 
(3) DHS reimburses the provider agency for hours that exceed the authorization 
given by DHS. DHS applies the error to the total number of units reimbursed in 
excess of the units authorized by DHS, unless purchased following emergency 
procedures. For nursing services, the maximum that may be reimbursed is the 
number of hours listed under "direct nursing hours" on the individual service 
plan/nursing service plan. 
(4) DHS reimburses the provider agency for any waiver service that is not 
identified on the individual service plan and attachments, unless the service 
was provided as a result of an emergency and is supported by backup 
documentation supplied within seven DHS work days from the date the emergency 
was determined. DHS applies the error to the entire amount reimbursed for such 
services. 
(5) DHS reimburses the provider agency for hours that exceed the total number of 
hours recorded on the documentation of services delivered form or approved 
facsimile. DHS applies the error to the total number of units reimbursed in 
excess of the units recorded on the time sheet. If the sum of the daily total of 
hours does not equal what is written in the monthly total blank, the lesser of 
the two totals is used to calculate the total number of hours subject to the 
error. 
(6) DHS reimburses the provider agency for nursing, physical therapy, 
occupational therapy, or speech pathology services, but a valid physician's 
order is missing. DHS applies the error to the total number of units claimed and 
not covered by a valid order. 
(7) DHS reimburses the provider agency for a claim for service, other than a 
pre-enrollment home health assessment, delivered prior to the eligibility 
effective date on the notification of Community Based Alternatives services 
form. DHS applies the error to the total number of units reimbursed for such 
services that were delivered before the effective date on the form. 
(8) DHS reimburses the provider agency for any hours that consisted of non-
billable time and activities as identified in the rule sec.48.6080 of this title 
(relating to Non-Billable Time and Activities). DHS applies the error to the 
total number of units reimbursed for such services. 
(9) DHS reimburses the provider agency for more than four hours of nursing used 
to decide whether to delegate to an Adult Foster Care provider. DHS applies the 
error to the total number of units reimbursed for such services. 
(10) DHS reimburses the provider agency for more than 10 hours during the 
participant's individual service plan year for nursing services being performed 
by a nurse to prevent service breaks caused by the attendant not being available 
to provide delegated nursing tasks. DHS applies the error to the total number of 
units reimbursed in excess of the 10 hour maximum for such services. 
(11) DHS reimburses the provider agency for an amount in excess of the amount 
documented on the invoice/receipt for adaptive aids, medical supplies, or minor 
home modifications. DHS applies the error to the total number of dollars 
reimbursed in excess of the amount on the invoice/receipt, plus the appropriate 
dollar amount of the requisition fee, if applicable. 
(12) There is no invoice/receipt for the purchase of adaptive aids or medical 
supplies, or for the completion of minor home modifications for which the 
provider has been reimbursed. DHS applies the error to the total dollar amount 
reimbursed for the medical supplies, adaptive aids, or minor home modifications 
in question, including the requisition fee. 
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 July 28, 1998.
TRD-9811923
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: September 1, 1998
Proposal publication date: February 6, 1998
For further information, please call: (512) 438-3765

PART XX. Texas Workforce Commission
CHAPTER 807. Propriety Schools
The Texas Workforce Commission (Commission) adopts the repeal of sec.sec.40 TAC 
Chapter 807, sec.sec.807.3, 807.101, 807.121-807.131 and new sec.sec.807.1-
807.6, 807.11-807.17, 807.31-807.37, 807.51-807.53, 807.61-807.65, 807.81-
807.84, 807.91-807.104, 807.111-807.113, 807.121-807.126, 807.141-807.147, 
807.161-807.164, 807.171-807.175, 807.191-807.194, 807.211-807.214, 807.221, 
807.222, 807.231-807.235, 807.251 and 807.252, concerning Proprietary Schools 
with changes to the proposed text as published in the May 22, 1998, issue of the 
Texas Register (23 TexReg 5391). Specifically, sec.sec.807.4, 807.6, 807.11 - 
807.13, 807.15, 807.33, 807.53, 807.64, 807.65, 807.81, 807.83, 807.84, 807.92-
807.95, 807.101, 807.111, 807.124 - 807.126, 807.143, 807.144, 807.146, 807.173 
- 807.175, 807.213, 807.231, 807.232 and 807.235 are adopted with changes to the 
proposed text as published in the May 22, 1998, issue of the Texas Register (23 
TexReg 5391) and all other sections are adopted without changes. The sections 
with changes will be republished here. 
The purpose of the new rules is to interpret and implement the provisions of 
Texas Education Code, Chapter 132, Proprietary Schools (the Act). The new rules 
as adopted incorporate some of the requirements previously contained in 40 TAC 
Chapter 807, which is concurrently repealed. The new rules are a reorganization 
of the provisions of 40 TAC Chapter 807 with some changes to the requirements 
including simplification of the wording, removal of repetition of the statute, 
clarification of particular responsibilities, and changes to requirements as 
dictated by the review of the rules repealed. 
Subchapter A of the adopted rules sets out the General Provisions. Specifically, 
sec.807.1 sets out the title and purpose of the rules, sec.807.2 sets out the 
definitions of terms, sec.807.3 sets out the information regarding the 
memorandum of understanding regarding improvement of quality of education and 
reduction of default rates, sec.807.4 sets out the waivers provisions, sec.807.5 
sets out the exemptions provisions, and sec.807.6 sets out the processing 
periods. 
Subchapter B of the adopted rules interprets and clarifies statutory provisions 
relating to certificates of approval. Specifically, sec.807.11 sets out the 
provisions for original certificates of approval, sec.807.12 sets out the 
provisions for renewal of certificates of approval, sec.807.13 sets out the 
provisions for changes in ownership, sec.807.14 sets out the provisions for 
changes in locations, sec.807.15 sets out the provisions for notification of 
legal action, sec.807.16 sets out the provisions for approval to offer associate 
degrees, and sec.807.17 sets out penalties and sanctions. 
Subchapter C of the adopted rules interprets and clarifies statutory provisions 
relating to financial requirements. Specifically, sec.807.31 sets out 
definitions relating to financial requirements, sec.807.32 sets out the 
standards for financial stability, sec.807.33 sets out the requirements for 
financial stability for an original certificate of approval, sec.807.34 sets out 
the requirements for financial stability for changes in ownership, sec.807.35 
sets out the requirements for financial stability at renewal, sec.807.36 sets 
out the provisions for the submission of interim financial statements, and 
sec.807.37 sets out the provisions for audits required by the Commission.
Subchapter D of the adopted rules sets out the provisions regarding 
representatives. Specifically, sec.807.51 sets out the representative 
requirements, sec.807.52 sets out the standards regarding representatives, and 
sec.807.53 sets out the limitations regarding representatives. 
Subchapter E of the adopted rules sets out the provisions regarding school 
directors and administrative staff. Specifically, sec.807.61 sets out the school 
director requirements, sec.807.62 sets out the school director qualifications 
and duties, sec.807.63 sets out the provisions for an acting school director, 
sec.807.64 sets out the requirements for a director of education, and sec.807.65 
sets out the director of degree programs requirements. 
Subchapter F of the adopted rules sets out the provisions regarding instructors. 
Specifically, sec.807.81 sets out the instructor qualifications, sec.807.82 sets 
out the temporary instructor provisions, sec.807.83 sets out the instructor 
application provisions, and sec.807.84 sets out the schools' responsibilities 
regarding instructors. 
Subchapter G of the adopted rules sets out the provisions regarding courses of 
instruction. Specifically, sec.807.91 sets out the definitions relating to 
courses of instruction, sec.807.92 sets out the general information for courses 
of instruction, sec.807.93 sets out the provisions regarding applications for 
additional courses of instruction, sec.807.94 sets out the stated occupation 
provisions, sec.807.95 sets out the curriculum content, sec.807.96 sets out the 
curriculum length, sec.807.97 sets out the provisions regarding program title, 
sec.807.98 sets out the provisions regarding equipment, sec.807.99 sets out the 
provisions regarding facilities, sec.807.100 sets out admission requirements 
relating to programs, sec.807.101 sets out school responsibilities regarding 
programs, sec.807.102 sets out requirements regarding program revisions, 
sec.807.103 sets out program requirements for degree granting schools, and 
sec.807.104 sets out penalties relating to courses of instruction.
Subchapter H of the adopted rules sets out the application fees and other 
charges. Specifically, sec.807.111 sets out the fee schedule, sec.807.112 sets 
out the fee schedule for renewal of a certificate of approval, and sec.807.113 
sets out the provisions for installment payments of fees. 
Subchapter I of the adopted rules sets out the provisions regarding advertising. 
Specifically, sec.807.121 sets out general information regarding advertising, 
sec.807.122 sets out provisions regarding the methods of advertising, 
sec.807.123 sets out provisions regarding the content of advertising, 
sec.807.124 sets out provisions regarding advertising of financial incentives, 
sec.807.125 sets out standards for the school catalog, and sec.807.126 sets out 
the provisions for advertisement monitoring. 
Subchapter J of the adopted rules sets out the provisions regarding admissions. 
Specifically, sec.807.141 sets out general information regarding admission, 
sec.807.142 sets out admission requirements, sec.807.143 sets out requirements 
for receipt of enrollment policies, sec.807.144 sets out provisions for the 
enrollment agreement, sec.807.145 sets out provisions for the conduct policy, 
sec.807.146 sets out provisions regarding tuition and fees, and sec.807.147 sets 
out admission requirements for degree granting schools.
Subchapter K of the adopted rules sets out provisions regarding progress 
standards. Specifically, sec.807.161 sets out general requirements for progress 
standards, sec.807.162 sets out progress standards for residence schools, 
sec.807.163 sets out progress requirements for correspondence schools, and 
sec.807.164 sets out progress requirements for degree granting schools.
Subchapter L of the adopted rules sets out provisions regarding attendance 
standards. Specifically, sec.807.171 sets out general requirements for 
attendance, sec.807.172 sets out attendance requirements for degree granting 
schools, sec.807.173 sets out provisions for termination of enrollment, 
sec.807.174 sets out provisions for make-up work in the case of an absence, and 
sec.807.175 sets out provisions for leaves of absence. 
Subchapter M of the adopted rules sets out provisions for cancellation and 
refund policies. Specifically, sec.807.191 sets out the provision for cancelling 
after a tour, sec.807.192 sets out the standards for consummation of refunds, 
sec.807.193 sets out refund requirements for residence schools, and sec.807.194 
sets out penalties relating to refunds. 
Subchapter N of the adopted rules sets out the provisions for records. 
Specifically, sec.807.211 sets out general information for records, sec.807.212 
sets out the provisions for student records, sec.807.213 sets out the provisions 
for attendance record keeping, and sec.807.214 sets out the requirements for 
record keeping concerning employment of students. 
Subchapter O of the adopted rules sets out the provisions for complaints. 
Specifically, sec.807.221 sets out the provisions regarding school policies 
concerning complaints and sec.807.222 sets out the provision regarding 
complaints and investigations. 
Subchapter P of the adopted rules sets out the provisions for truck driver 
training. Specifically, sec.807.231 sets out general information relating to 
truck driver training, sec.807.232 sets out provisions regarding truck driver 
instructor development courses, sec.807.233 sets out provisions regarding 
behind-the-wheel instruction, sec.807.234 sets out provisions regarding motor 
vehicle insurance, and sec.807.235 sets out prohibited activities for truck 
driver schools, truck driver instructor trainers, and truck driver instructors. 
Subchapter Q of the adopted rules sets out the provisions for closed schools. 
Specifically, sec.807.251 sets out the provisions for school closures and 
sec.807.252 sets out the provisions of the tuition protection fund.  
Based on the comments received from the public and internal comments, the 
Commission has modified: 
sec.807.4(a) by changing "the requirements" to "one or more requirements" and by 
changing "the waiver" to "a waiver" after "grant"; 
sec.807.6 by changing "owner" to "ownership" in (a)(1)(C) and (a)(2)(C) and 
revising the numbering of the paragraph and subparagraphs under subsection (b); 
sec.807.11(3) by adding, ", as specified in this chapter" after "statements";
sec.807.12(a)(2) by changing "for the most recent fiscal year" to "as specified 
in this chapter,"; 
sec.807.13(a) by changing the provision to read, "the school may notify the 
Commission of the change in ownership a minimum of 45 days before the change in 
ownership to request that the Commission, in lieu of a full application, accept 
a partial application."; 
sec.807.13(b)(2) by deleting the existing wording and adding "the school fails 
to file notice of the change of ownership at least 45 days prior to the 
ownership transfer."; 
sec.807.15(c) by adding a comma after "include"; 
sec.807.33(a) by moving "for" to paragraphs (1) and (2) and removing the comma; 
sec.807.53(c)(4) by changing "student" to "students"; 
sec.807.64 by adding a grandfather clause for directors of education;
sec.807.65 by adding a grandfather clause for directors of degree programs;
sec.807.81(b) by changing numerous items as detailed in the reprinted rule; 
sec.807.81(c)(5) by deleting "as a bartending instructor" and adding "as having 
completed the required awareness course"; 
sec.807.81(d) by deleting "and mathematical proficiency"; 
sec.807.83(c) by adding "or any professional certifications held by the 
instructor" after "program," and adding at the end the sentence, "The Commission 
will accept notification, in lieu of a new instructor application, for any 
instructor that has a current approval by the Commission to teach the same 
subjects at other schools that have the same owners."; 
sec.807.84(f) by adding before "Topics" the sentence, "In-service training 
includes planned professional development opportunities that enable 
inexperienced instructors to learn and develop effective teaching strategies and 
skills." and adding at the end the sentence, "Competency-based training 
specifies the skills and skill levels required to complete a training program, 
develops and organizes teaching and learning methods to enable students to 
achieve the identified skills and levels of proficiency, and uses criterion-
referenced evaluation to measure achievement."; 
sec.807.92 by changing the title of the rule to "General Information for Courses 
of Instruction"; 
sec.807.92(d) by adding after last sentence, "If the school does not follow an 
advisory committee recommendation, the school shall maintain written 
documentation of the justification for not following the recommendation.";
sec.807.93 by changing the title of the rule to "Applications for Additional 
Courses of Instruction"; 
sec.807.94(b) by adding at the end ", all other things being equal";
sec.807.94(c)(6) by adding at the end ", including letters from potential 
employers that describe their need for trained employees"; 
sec.807.95(a)(5) by changing the wording to read "if deemed appropriate by the 
Commission, provide an externship or a simulation of the workplace for the 
program"; 
sec.807.95(c) by changing "industry or schools" to "industry, schools, and other 
relevant entities as determined by the Commission"; 
sec.807.101(b)(1) by changing "retention" to "completion"; 
sec.807.111(9) by changing "fees" to "fee"; 
sec.807.124(b) by adding "unless those amounts have been published by the United 
States Department of Labor"; 
sec.807.124(c)(1) by changing "student tuition loans" to "financial aid 
available, if qualified"; 
sec.807.125(a)(13) by adding ", including the number of clock hours of a 
seminar, seminar topic, lecture, lab, and externship, as well as credit hours in 
each subject, if applicable" after "description of courses of instruction";
sec.807.126(a) by deleting "improper" and adding "in violation of the Act or 
rules" after "advertising"; 
sec.807.126(b) by adding "As corrective action for violations of the Act or 
rules, the"; 
sec.807.143(a) by adding "For all enrollment other than for" before "seminars" 
and adding "each school" before "shall"; 
sec.807.143 by adding "prospective" before "student" in subsections (a) and (b); 
sec.807.144(e)(5) by changing "received" to receive"; 
sec.807.146(b) by changing "provide to the Commission" to "make available for 
review by the Commission upon request"; 
sec.807.146(f) by adding "upon request" after "review" and changing "have on 
file" to "be clearly itemized on"; 
sec.807.173(a)(5) by adding a period; 
sec.807.174 by changing "make up" to "make-up"; 
sec.807.175(e) by changing "schedule" to "schedules"; 
sec.807.213(c) by changing the subsection to read, "Each instructor shall 
maintain a record of attendance, which shall indicate a positive record of each 
student's attendance. Entries in the record of attendance shall be made in ink 
or other permanent medium, including scantron or other permanent computer 
records, and shall not be changed in a manner that precludes reading the 
original entry."; 
sec.807.231(1) and (2) by changing "an approved" to "a," deleting the second 
paragraph, deleting "and" and removing the paragraph designations accordingly;
sec.807.232 by changing in (b)(2) "muscle" to "muscles", by adding in (b)(6) 
"and" after "parking," and changing "consisting of following:" to "consist of 
the following:", and by changing in (b)(6)(A)-(C) "include" to "including" and 
"signals" to "signal"; and 
sec.807.235 by adding "of" and "or" where appropriate and changing the 
punctuation. 
Some commenters were for the rules, some were against the rules, and others did 
not indicate their position. The commenters expressed concerns and questions 
about the rules as proposed and suggested changes. Representatives from the 
following groups and associations provided comment: 
the Academy of Health Care Professionals; 
the Career Colleges and Schools of Texas; 
the Interactive College of Technology; 
the International Business College, Inc.; 
the Southern Careers Institute, Inc.; 
the Texas Motor Transportation Association; 
the Tri-State Semi-Driver Training, Inc.; 
the Western Technical Institute; and 
the Wyoming Technical Institute.  
Following each comment summary is the Commission's response. 
Comment: Concerning the rules generally, one commenter expressed general concern 
regarding contract training by companies that hire people and promise free 
training when in fact the promised training often is not free and may be in 
violation of the Proprietary School Act. The commenter expressed concern that 
the training often results in penalties to the "students" in terms of defaulted 
loans, termination of the training, and various charges to the trainees. 
Specifically, the persons do not qualify to work in the fields in which they 
were promised training, end up with large debts, or fail to complete the 
training. The impact is often incomplete training and these situations reflect 
badly on the approved proprietary schools. The commenter asked that we examine 
this area of concern, if it is within our jurisdiction. 
Response: This comment appears to be more applicable to the implementation of 
the statute than to the rules presently adopted. The Commission responds by 
stating that the statute specifically exempts company training per 
sec.132.002(a)(4); however, in each case the Commission will determine whether 
such employment training relationships meet the terms of the exemption. 
Comment: Concerning the rules generally, one commenter stated that the licensed 
schools would have hoped for some regulatory relief, but it does not appear this 
is the case. The commenter stated further that he appreciates the need for rules 
and regulations, but the Commission rules may be a bit of overkill. 
Response: The Commission disagrees. By comparing the presently proposed rules 
with the previous rules, it is apparent that numerous areas of regulation were 
eliminated and many requirements were reduced. Furthermore, the Commission 
invited the proprietary schools to submit suggestions for changes. The 
Commission incorporated numerous suggested changes to the rules and worked with 
representatives from various proprietary schools to review each aspect of the 
regulations. Many of the changes were made to accommodate the schools in areas 
where the changes would not affect the protection of students and quality of the 
schools. These changes significantly reduce regulation of proprietary schools. 
The Commission adopted rules reflect the combined efforts of the proprietary 
schools and the Commission in ensuring that the intent of the Act is met in a 
manner that permits proprietary schools to efficiently conduct business. 
Comment: Concerning sec.807.2(7), one commenter stated that a sentence should be 
added to the definition of "Clock Hour." The commenter specifically recommended 
adding, "Two periods may be combined into a 100 minute period including no more 
than 20 minutes of breaks." The commenter suggested that adding this sentence 
would align the Commission definition more closely to the United States 
Department of Education definition. 
Response: The Commission disagrees with the suggestion. The Commission believes 
that at least one ten-minute break per hour of class is needed to increase the 
amount of material absorbed by students. If two one-hour classes run 
consecutively, each hour should contain a ten-minute break. 
Comment: Concerning sec.807.2(30) and sec.807.193, one commenter raised 
questions regarding the definition of "week." The commenter stated that the 
definition of "week" is in direct conflict with the definition applied by the 
United States Department of Education for schools that measure or disburse aid 
on a credit hour basis. The commenter suggested that the Commission may want to 
further review this issue. 
Response: The Commission disagrees. A representative of the United States 
Department of Education verified that there is no such conflicting definition of 
"week." The Commission further believes that the use of the proposed definition 
of "week" is appropriate for interpreting sec.807.193 pertaining to the 
calculation of refunds. The purpose of this definition is to more accurately 
pro-rated refunds upon termination of a student's enrollment given that as few 
as two days may span two calendar weeks thus making the student responsible for 
two weeks worth of classes when in fact the student attended only two days. 
Comment: Concerning sec.807.4, one commenter stated that by using the word 
"extreme" the Commission limits the ability of this section to be applied in 
many cases. The commenter recommended that the word "extreme" be deleted because 
the definition of that term is relative and does not provide a conclusive 
foundation upon which to make decisions of applicability. 
Response: The Commission agrees that the inclusion of the term "extreme" limits 
the ability of the Commission to apply the section in many cases; however, it is 
the intent of the Commission to grant waivers only in extreme situations. The 
Commission added the term specifically to strengthen the requirements for 
obtaining a waiver. Paragraphs (1) through (3) clarify the instances where 
"extreme" extenuating circumstances would be deemed by the Commission as 
acceptable grounds for granting a waiver. The Commission believes that these 
paragraphs lend sufficient clarity to the intended meaning of "extreme." 
Comment: Concerning sec.807.13, one commenter stated that the current proposal 
misses the intent of this section which is for the Commission to have the 
opportunity to approve or deny in advance any new persons or entities who assume 
control of a school. Legally and in reality, "ownership" should not be the 
issue. "Control" is the real issue. For example, a school owner with 100 percent 
of the stock could give 20 percent of the school's stock to key employees as a 
reward for their dedicated service and retain 80 percent. In this instance, 
although there was a change of ownership, there was no change of control of the 
institution. The majority of the stock is still controlled by the same 
person/entity, so why should the Commission take staff time to get deeply 
involved in a legally and realistically insignificant event? On the other hand, 
control could change in a small stock transaction where there is a 49 percent 
stockholder and 51 percent stockholder. Let's say the 51 percent stockholder 
sells 2 percent to the 49 percent stockholder resulting in a real change of 
control of the institution. Therefore, the "ownership" target may or may not be 
significant in all cases. But the "control" issue is always significant. As a 
suggestion, TWC could require notification of all "ownership" changes and retain 
approval authority over all "control" changes. 
Response: The Commission agrees with the commenter that "control" is an 
important factor. The Commission believes that the change in control is a 
primary reason why the Act includes a definition of "Owner" in sec.132.001; why 
ownership is nontransferable pursuant to sec.132.056; and why a new owner must, 
at least 30 days prior to the change in ownership, apply for a new certificate 
of approval pursuant to sec.132.056(c). Based on the statutory requirements, the 
Commission must require that a new application be filed, even when there is no 
change in control. The Commission agrees that the use of the word "notification" 
would be beneficial and agrees to accommodate transfers of ownership where there 
is no change in control by allowing for the filing of a "notification" of change 
in ownership 45 days in advance of the change in ownership. The advance notice 
of change in ownership would provide the Commission with an opportunity to 
allow, on a case-by-case basis where there is no significant change in control, 
the filing of an abbreviated application in lieu of a full application. 
Comment: Concerning sec.807.15, one commenter asserted that the way the proposal 
is currently constructed, it would require that the school notify the Commission 
if one of its representatives was being sued for a traffic accident or one of 
its managers was going through a divorce, a manager was behind on child support, 
etc. The commenter stated that the problem could be solved by modifying 
subparagraph (a) of the proposal to read in part, "...a school shall notify the 
Commission in writing of any legal action pertaining to the school." 
Response: The Commission disagrees with lessening the requirements of this 
section because the financial stability of the school could be affected by a 
judgment against a director, owner, management employee, or instructor, 
particularly if one or more are sued in their official capacity. Also, the 
schools may not be in the position to determine the ramifications of a suit. In 
these situations, the impact on the individual assets of the defendant could 
affect the financial stability of the school. 
Comment: Concerning sec.807.51(a) and sec.807.111(8), one commenter stated that 
the whole process of annually reviewing the approval of representatives and 
reporting changes of addresses for representatives is unnecessary. Once an 
individual is approved to be a representative, additional paperwork is 
unnecessary and burdensome. 
Response: The Commission disagrees with changing this provision because the 
annual review is a statutory requirement and the need for changes of address are 
essential to locating the representatives, if necessary. The Commission 
disagrees that the paperwork is unnecessary and burdensome and that only a one-
time review would be appropriate. The intent of the Act is to protect the 
students, and a yearly review of representatives would allow for proper 
monitoring. 
Comment: Concerning sec.807.53(a), one commenter stated that representatives 
should be allowed to begin solicitation of students upon submission of proper 
paperwork without having to wait for notice of approval. It takes too long for 
the Commission to issue approvals, and it is unreasonable to assume new 
employees are not to do their jobs simply because approvals have not been 
processed. The commenter stated that the frequency of disapproval is very low. 
This would make the approval process the same as for instructors. 
Response: The Commission disagrees with the suggestion because the Commission 
interprets the statute as requiring prior approval of representatives before a 
representative may begin solicitation. The Commission believes the purpose of 
this provision is to protect students from improper solicitation. 
Comment: Concerning sec.807.64, one commenter stated that the grandfather 
provision should apply to directors of education. 
Response: The Commission agrees to apply the grandfather provision to directors 
of education. 
Comment: Concerning sec.807.65, two commenters stated that the grandfather 
provision should apply to the directors of degree programs. 
Response: The Commission agrees to apply the grandfather provision to directors 
of degree programs. 
Comment: Concerning sec.807.81, particularly subparagraph (b)(4)(B), now (b)(5), 
one commenter stated that this rule revision is a significant departure from the 
current rules which allow schools the ability to hire instructors with a high 
school diploma or G.E.D., and practical experience of a minimum of five years 
within the last ten years. While the majority of the commenter's instructors 
have a related postsecondary educational credential upon hire, the commenter 
also employs some excellent instructors who have anywhere from 5 to 20+ years of 
experience in the field, but no postsecondary training. The commenter stated 
that he appreciates the value given to postsecondary training in the proposed 
rules, but stated that it would seriously limit employment choices. Please 
reconsider this proposed change. 
Response: The Commission agrees with this comment and will modify the rule to 
allow approval of instructors with a secondary education and adequate 
experience.
Comment: Concerning sec.807.83(c), one commenter stated that a section from the 
current rules must be retained in the new rules: "(IV) An instructor shall hold 
a high school diploma, GED, or proof of satisfactory completion of relevant 
subject(s) from a recognized postsecondary institution, and practical experience 
in the appropriate subject area of a minimum of five years within the last 10 
years." The reason retention of item (IV) is of such concern is that out of 
approximately twenty technical instructors at this campus, less than one third 
of them would qualify under the proposed rules unless item (IV) is kept. 
Although current faculty may be grandfathered, the commenter is concerned with 
obtaining quality faculty in the future. The commenter believes that the 
proposed rules look as though the amount of education is taking precedence over 
practical experience in fields where it is not appropriate. Additionally, 
stronger consideration should be given for professional certifications that 
instructor candidates may hold. Professional Certifications such as Certified 
Electronics Technician (CET), Automotive Service Excellence (ASE), Certified 
Medical Assistant (CMA), and Accredited Records Technician (ART), just to name a 
few, are really much stronger indications of a candidate's actual competence in 
a particular field than education or credentials alone. Another commenter stated 
that the current rules should not be changed because instructors should be 
approved based on experience and not just if they have a postsecondary 
education. In the commenter's opinion, this change is unacceptable. 
Response: The Commission agrees to modify the rule to recognize the importance 
of practical experience and postsecondary education as detailed in the rule 
because many qualified instructors may fall within this category of 
qualifications. The Commission also agrees to add a provision regarding 
professional certifications to the revised language of the rule; however, this 
information, when submitted, is something that is already considered. 
Comment: Concerning sec.807.83(c), one commenter stated that allowances should 
be made to transfer instructor approvals for the same subjects between campuses 
of the same school organization without having to submit a new application.
Response: The Commission agrees that notification to the Commission would be 
acceptable in lieu of a new application. The rule is modified to allow notice, 
in lieu of a new application under these circumstances. 
Comment: Concerning sec.807.84(c), one commenter stated that requirements 
imposed are entirely too burdensome and unworkable. The rule states ". . . 
includes at a minimum. . . attendance at trade and professional conferences, and 
observation of, or participation in, on-the-job activities." The commenter 
believes that this is unrealistic. 
Response: The Commission disagrees. The quality of education is foremost. One of 
the best means to ensure quality is to make sure that the instructors are kept 
up-to-date with information through continuing education training. The 
responsibility is placed on the school to ensure that the requirements are met. 
Comment: Concerning sec.807.84(f), one commenter stated that the requirements 
imposed are entirely too burdensome and unworkable. The rule states, "Topics 
shall include competency-based training . . . ." Since individuals are approved 
based on their competency, the commenter believes this is redundant. 
Response: The Commission disagrees with the suggestion that the provisions in 
this section are redundant. The qualifications in a field of study do not 
necessarily indicate that the instructor is an effective teacher. The purpose of 
this section is to ensure that the school takes the responsibility to ensure 
that the instructors are good educators and are qualified in their fields. The 
Commission agrees to modify the rule by defining "competency-based training."
Comment: Concerning sec.807.84(g), one commenter stated that the requirements 
imposed are entirely too burdensome and unworkable. The rule states, "The school 
shall provide and document in-service training that . . . ." This is unnecessary 
and is not realistic in many subjects; i.e. English Communication, Keyboarding, 
Office Procedures, Receivables, Payables, Payroll, etc. 
Response: The Commission disagrees because there are verifiable means of 
providing and documenting in-service training in various fields. The Commission 
clarifies this section by defining "in-service training." 
Comment: Concerning sec.807.94(b), one commenter stated that it is virtually 
impossible for a school to demonstrate that a graduate is more likely to be 
employed than an individual who does not complete the program. There are many 
other ways that individuals may be qualified for employment, i.e. experience, 
attending other programs, etc. 
Response: The Commission agrees that it may be difficult in some instances to 
compare one individual to another because factors other than education may be 
difficult to measure; however, the Commission did not intend for all factors to 
be compared. To clarify this matter, the Commission will add "all other things 
being equal" to clarify that the training must provide something of value to the 
students in their employability. Providing a student with education through a 
proprietary school should put that student in a better position than a student 
with otherwise identical qualifications but who did not get the added education. 
The Commission disagrees that this provision should be removed because it 
affords protection to students by helping to ensure they receive a quality 
education for the tuition and fees charged.
Comment: Concerning sec.807.94, one commenter recommended adding another item 
for consideration in evaluating occupational demand as follows, "(8) Letters 
from potential employers which describe their need for trained employees."
Response: The Commission agrees with the recommendation and states that these 
letters are items the Commission already considers. It was intended that such 
letters would be submitted under item (6), which states "regarding relative 
supply and demand for the stated occupation." To clarify that these letters are 
acceptable, the Commission modifies the rule accordingly. 
Comment: Concerning sec.807.95, one commenter commended the Commission's 
thinking in this area because most listed items are critical to a contemporary, 
successful program. However, one area that may need tempering is paragraph (5). 
An externship, while desirable, may not be realistic as a requirement for a 
program. Also it may be that a school's employer advisory board would be a 
better judge of what is or is not an "appropriate" workplace simulation.
Response: The Commission agrees in part and revises the wording of the section 
to state that the Commission may not require an externship in all situations. 
The Commission agrees that the school advisory committee recommendations would 
be important for the Commission's review, but disagrees that the schools should 
be allowed to make the final determination, due to the need to ensure that a 
quality education is provided to students. The rule is modified for clarity 
purposes. 
Comment: Concerning sec.807.101(i), one commenter stated that the ratios are too 
vague and do not allow for circumstances that current rules provide; i.e. 50:1 
for keyboarding. Another commenter requested changing "technical, vocational or 
allied health lecture 30:1" in the new rule to something closer to the "40:1" 
previously in the rule, or even changing to approximately "36:1." The commenter 
stated that "factors of three" work best for the trucking industry and that 
currently that school has been averaging 36:1 with no significant problems at 
all. The commenter wasn't sure why the rule changed from 40:1 to 30:1 and 
pointed out that the PTDIA adopted 36:1 as the standard. The commenter 
recommended using "36:1" or, in the alternative, leaving the standard as 40:1. 
Response: The Commission disagrees with the suggestion that the rule is too 
vague. For clarification purposes, the Commission sets forth a guideline of 
specific ratios that may be acceptable. The Commission incorporated the term 
"may" because a particular subject may call for a smaller ratio or a larger 
ratio, as appropriate. The Commission would review and approve such subjects on 
a case-by-case basis. 
Comment: Concerning sec.807.112, one commenter stated that he was informed by 
Commission staff in one of the first committee meetings regarding changes to the 
rules that the fees paid by small schools do not cover their oversight costs to 
Commission. The commenter believes if that is true, then fees paid by other 
schools (perhaps even their competition) are subsidizing school regulation. If a 
school, regardless of size, cannot pay for its own regulation, reason suggests 
it should not get in the business in the first place. The fees for all schools 
(except small schools) appear to be increased as a result of this proposal. The 
statute puts the fees at 0.30 percent of the school's gross tuition and fees, 
while the proposed rule revision increases the percentage to 0.31 percent. The 
commenter believes that anytime there is a fee increase, it should not be buried 
in the proposed regulations but should be clearly disclosed to all schools. The 
schools certainly cannot increase tuition or fees without clear notification to 
the Commission. The commenter believes that this should work both ways. 
Response: The Commission agrees that one school may pay a larger percentage of 
the regulatory costs; however, this is based on the Act's construction and not 
due to the rules. The fees paid by small schools and larger schools are intended 
to pay for the administration of the entire program without breaking down the 
costs paid by one school or one type of school. The Commission disagrees with 
the commenter because each fee is authorized by the Act under sec.132.201 to be 
an amount not to exceed 150 percent of the specified amount. The fee in place 
and contained in the proposed rules has been set at 0.31 percent for several 
years. The renewal fee is set well below the permissible maximum of 0.45 
percent. There is no increase in fees between the old rules and the new rules. 
Comment: Concerning sec.807.122(c), one commenter proposed changing the language 
to read "Nor shall schools use any information regarding job openings or 
placement rates except those provided to the Commission on the most currently 
filed and complete placement employer report and/or TWC PS FORM 005 for the 
program being advertised. No guarantees concerning job placement may be made and 
placement assistance can be advertised only if offered by the school." The 
rationale for this is to prohibit the use of any term other than "placement 
assistance," and it specifically prohibits the school from communicating in any 
manner that it knows of jobs or employment in the advertisements. This is 
inconsistent with what is in 807.143(b)(6), wherein those rules allow us to 
provide information to prospective students regarding the number of job openings 
and placement rates. 
Response: The Commission agrees with the commenter that other sources of 
information regarding employment rates may be credible, but is concerned with 
broadening the language to include any or all sources regarding employment 
rates. Given the costs of reviewing alternate advertising, the Commission 
declines to make this change. 
Comment: Citing sec.807.123(b), one commenter stated that the section should 
allow for including information on programs that are offered but not recognized 
by the United States Secretary of Education. For example, there is an 
organization called the Professional Truck Driver's Institute of America 
(PTDIA), that is developing a model and standardized curriculum for truck driver 
training across the country which is possibly recognized by the Department of 
Transportation and/or the Department of Labor. The commenter requests that the 
rules recognize approval or recognition by other entities such as the PTDIA or 
other agencies the commission deemed appropriate. The commenter believes that 
other forms of recognition, for the quality of training that a school may offer, 
should be allowed in school advertisements. The commenter suggested adding "or 
other bodies approved by the Commission," "or the Commission," or "recognized by 
a federal agency" instead of just "the United States Department of Education." 
The commenter stated that using this information would be in line with the 
movement toward national standards. 
Response: The Commission agrees that other sources of information may provide 
credible information that may be appropriate for advertising; however, the costs 
of pre-approving the various sources and reviewing the credibility of such 
sources would be prohibitive. 
Comment: Concerning sec.807.124(b), one commenter suggested that the language 
"advertisements shall not contain dollar amounts as representative or indicative 
of the earning potential of graduates," should be modified to allow 
advertisement of wages that are verifiable from credible wage reports and 
surveys. Particularly, the commenter suggested permitting information from 
surveys such as the one available to the truck driving industry published by the 
American Trucking Association, published in the Wall Street Journal, or 
contained in the occupational handbook published by the United States Department 
of Labor, or even reported on the PS-005 forms reported to the Commission 
regarding wages. The commenter suggested that if the wage and occupational 
demand information can be substantiated by an independent source or within the 
school records, then some latitude may be appropriate to allow additional 
information in broad advertising. The commenter pointed out that this 
information is required to be disclosed to prospective students once the 
students prepare to enter the school anyway, so the schools should be able to 
advertise this same information before the students reach the school's doors. 
Response: The Commission agrees with permitting in advertisements by proprietary 
schools the use of information contained in publications by the United States 
Department of Labor. The rule is modified accordingly. 
Comment: Concerning sec.807.124(c)(1), one commenter suggested allowing 
advertisements of financial aid instead of just "student tuition," because there 
are other types of loans available for housing, books, and expenses in addition 
to loans for tuition. The proposed language allows that, "Advertisements for 
student loans shall contain the language, student tuition loans available." The 
commenter suggested changing the wording to "financing available," and "loans 
available, if qualified." Since there are other organizations that will finance 
more than just tuition the commenter requests that the advertisement phrases be 
a little more open ended. 
Response: The Commission agrees with the recommendation and will modify the 
language to read "financial aid available if qualified." 
Comment: Concerning sec.807.126, one commenter questioned how the term 
"improper" would be defined in the advertisement monitoring section, what 
sanctions would be invoked, and what due process notification would apply.
Response: The Commission agrees to clarify this section by substituting for 
"improper" the phrase "in violation of the Act or the proprietary school rules." 
Any adverse action that is taken is appealable in the same manner as for other 
violations under the Act and the same due process would be afforded.
Comment: Concerning sec.807.126(b), one commenter asked whether this section 
applies to improper advertising action similar to that referenced in subsection 
(a). 
Response: The Commission agrees to clarify that this section applies to 
corrective action by adding "as corrective action that the" because (b) is 
intended as a corrective action for schools found to have violated the 
advertisement provisions. The Commission would take this action so we hopefully 
would not have repeats. 
Comment: Concerning sec.807.146(b)(2), one commenter stated that the requirement 
for a school to submit the name/address of lenders should only apply to lending 
situations other than lenders making guaranteed loans to students under Title 
IV. 
Response: The Commission disagrees with the commenter. Due to the statutorily 
imposed refund requirements, credits to the students must often be made directly 
to the lenders from the Tuition Protection Fund. Without the information 
requested, the refund process would be extremely difficult. 
Comment: Concerning sec.807.146(f), one commenter stated that the intent of this 
requirement needs to be clarified and asked: why would schools keep signed 
receipts of charges or payments to a student, why would one write a receipt for 
charges, why would a school pay a student, and in an age where most such 
processes are computerized why should the school be required to make students 
sign all receipts and keep them as an additional record to the records already 
required earlier in the paragraph? The commenter suggested that the last 
sentence of (f) should be deleted and the intent of the entire paragraph should 
be clearly stated. 
Response: The Commission agrees to clarify this section but disagrees with 
changing the substance of the requirement because it believes that this section 
is required to facilitate refunds. Often the receipts are not sufficiently 
detailed and schools do not document when payments are made to students. Schools 
make payments to students in the form of housing, books, bus passes, and other 
items. These fees are often credited against refunds and are relevant to 
implementing the statutory refund provisions. 
Comment: Concerning sec.807.161(a) and sec.807.162, one commenter suggested 
eliminating the requirement for a mid-term progress evaluation because a mid-
term grade more aptly lends itself to elementary or secondary programs, whereas 
most, if not all, postsecondary schools are organized on a term, quarterly, or 
semester basis. The commenter believed all other agencies require and base 
progress measurements on this time frame and that the Commission attendance 
policy fairly well prevents a school from simply "carrying someone on the 
rolls." 
Response: The Commission disagrees with changing the provisions in this section 
because the purpose of requiring a mid-term grade is to provide the students 
with a measure of their progress. The mid-term will give the students an idea of 
their likelihood of successfully completing the training and permit the students 
to make an informed choice as to whether to continue with the training and to 
expect more funds or incur more debt. Without such a minimum measure, the 
Commission believes that there is a greater likelihood that the students will be 
unable to make informed decisions about continued enrollment.
Comment: Concerning sec.807.193(d), one commenter suggested that a school be 
able to calculate charges, based on "scheduled or completed hours" as opposed to 
"scheduled hours of classes through the last day of attendance." The commenter 
pointed out that in some cases, students will complete the entire course in less 
than the scheduled time, and that a school should be able to receive tuition for 
work completed. 
Response: The Commission disagrees. The Act at sec.132.061(b)(1) references 
"course time." The Commission interprets "course time" to mean scheduled hours 
through the last date of attendance. 
Comment: Concerning sec.807.213(c), one commenter recommended that with 
computers, scantrons and other technologies, it is antiquated to require a 
"positive record of attendance" which means there must be a "p" in every little 
box on the roll sheet. Under this system, if there are 30 students in a class 
and only one is absent, the instructor has to take the time to record 30 marks 
instead of recording only the (1) absence. However, the real problem comes in 
the subsequent data entry process where it is much more likely a clerk will make 
a mistake making 30 entries instead of 1 entry. 
Response: The Commission disagrees. Often a question of expulsion for failure to 
attend is an issue that arises between the school and students. Without an 
affirmative mark for attendance, the Commission would need to provide the 
student the presumption of attendance. This provision is for the protection of 
the school and the students, and facilitates accurate determinations of refunds 
given that the refunds are often done on a pro-rata basis as dictated by 
attendance. 
Comment: Concerning sec.807.231, one commenter did not believe TxDOT has any 
truck driver training criteria and feels that it may be more appropriate for the 
Commission to spell out what the minimum behind-the-wheel standards are. 
Response: The Commission agrees to remove the reference to TxDOT minimum behind-
the-wheel standards in sec.807.231(2). 

SUBCHAPTER A. General Provisions
40 TAC sec.sec.807.1-807.6
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.4. Waivers. 
(a) Upon a showing of extreme extenuating circumstances, a school governed by 
this chapter may request a waiver from one or more requirements of this chapter. 
The Commission shall grant a waiver only upon a specific finding of good cause 
establishing that: 
(1) the imposition of the rule requirement from which the waiver is sought would 
cause undue economic hardship to the school and have a negative impact on the 
ability of the school to provide the students with the skills and knowledge 
required for employment; 
(2) the quality of education shall in no way be diminished or sacrificed by the 
granting of the waiver; and 
(3) the granting of the waiver will in no way limit the statutorily required 
application approval criteria contained in sec.132.055 of the Act. 
(b) The Commission may revoke a waiver in the same manner as a revocation of a 
certificate of approval, if the Commission determines that the criteria 
contained in this section for a waiver no longer exists. 
(c) A school may appeal a requested waiver denial or revocation in accordance 
with the provisions of Subchapter D of the Act. 

sec.807.6. Processing Periods. 
(a) The time periods for processing applications from schools, including small 
businesses, for certificates of approval, as well as approvals for 
representatives, school directors, and instructors, shall be in accordance with 
the following time periods. 
(1) The first period is the time from the receipt of an application to the date 
of the issuance of a written notice approving the application or outlining the 
reasons why the application is unacceptable. The time periods for each 
application are: 
(A) original certificate of approval - 40 days; 
(B) renewed certificate of approval - 40 days; 
(C) change in ownership certificate of approval - 40 days; 
(D) original representatives - 21 days; 
(E) renewed representatives - 21 days; 
(F) school directors and instructors (approval contingent on issuance of 
school's approval) - 40 days; and 
(G) school directors and instructors (approval not contingent on issuance of 
school's approval) - 55 days. 
(2) The second period is the time from receipt of the last item necessary to 
complete the application to the date of issuance of written notice approving or 
denying approval of the application. The time periods for each application are: 
(A) original certificate of approval - 40 days; 
(B) renewed certificate of approval - 40 days; 
(C) change in ownership certificate of approval - 40 days; 
(D) original representative (approval contingent upon issuance of school's 
approval) - 21 days; 
(E) original representative (approval not contingent upon issuance of school's 
approval) - 21 days; 
(F) renewed representative (approval contingent upon issuance of school's 
approval) - 21 days; 
(G) school directors and instructors (approval contingent on issuance of 
school's approval) - 40 days; and 
(H) school directors and instructors (approval not contingent on issuance of 
school's approval) - 55 days. 
(b) In the event the application is not processed in the time periods as stated 
in this section, the applicant has the right to request of the Commission full 
reimbursement of all filing fees paid in that particular application process. If 
the Commission does not agree that the established time periods have been 
violated or finds that good cause existed for exceeding the established periods, 
the request will be denied. Good cause for exceeding the period established is 
considered to exist if: 
(1) the number of applications for certificates of approval, representatives, 
school directors, or instructors as appropriate to be processed exceeds by 15% 
or more the number processed in the same calendar quarter of the preceding year; 
(2) another public or private entity utilized in the application process caused 
the delay; or 
(3) other conditions exist that give good cause for exceeding the established 
periods. 
(c) If the request for full reimbursement authorized in this section is denied, 
the applicant may then request a hearing by appealing to the Commission for a 
resolution of the dispute. The appeal will be processed in the same manner as 
other appeals involving schools pursuant to the Act. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on July 27, 1998.
TRD-9811857
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER A. Proprietary School Advisory Commission
40 TAC sec.807.3 
The repeal is adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provide the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 
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 July 27, 1998.
TRD-9811874
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER B. Certificates of Approval
40 TAC sec.sec.807.11-807.17
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.11. Original approvals. 
A complete application for an original certificate of approval shall consist of 
the following: 
(1) a completed application form provided by the Commission; 
(2) a properly executed school bond; 
(3) complete and correct financial statements, as specified in this chapter, 
demonstrating the school is financially stable and capable of fulfilling its 
commitments for training; 
(4) the application fee as specified in this chapter; and 
(5) any other revisions or evidence necessary to bring the school's application 
for approval to a current and accurate status as requested by the Commission. 

sec.807.12. Renewal. 
(a) For small schools, the certificate of approval shall be renewed at least 
every three years, or more frequently as determined by the Commission. A 
complete application for renewal of a certificate of approval shall consist of 
the following: 
(1) a properly executed school bond continuation certificate; 
(2) complete and correct annual financial statements, as specified in this 
chapter, demonstrating the school is financially stable and capable of 
fulfilling its commitments for training; 
(3) the renewal fee and the fee for the tuition protection fund, if applicable, 
specified in this chapter; and 
(4) any other revisions or evidence necessary to bring the school's application 
for approval to a current and accurate status as requested by the Commission. 
(b) For all other schools, the certificate of approval shall be renewed 
annually. A complete application for renewal of a certificate of approval shall 
consist of the following: 
(1) a completed application for renewal form provided by the Commission; 
(2) a properly executed school bond; 
(3) complete and correct annual financial statements for the most recent fiscal 
year demonstrating the school is financially stable and capable of fulfilling 
its commitments for training; 
(4) the renewal fee and the fee for the tuition protection fund, if applicable, 
specified by this chapter; and 
(5) any other revisions or evidence necessary to bring the school's application 
for approval to a current and accurate status as requested by the Commission. 
(c) The effective, expiration, and issuance dates are indicated on the 
certificate of approval. The Commission may reflect the date of renewal as the 
date following the date of expiration of the prior certificate of approval, if 
the school submitted a timely request for renewal and met all of the 
requirements contained in this chapter for renewal. 
(d) The complete renewal application shall be postmarked on or before the due 
date as indicated in the Act. 

sec.807.13. Change in ownership.
(a) The Commission may consider the addition or deletion of any person defined 
as an owner under the Act as a change in school ownership. The school may notify 
the Commission of the change in ownership a minimum of 45 days before the change 
in ownership to request that the Commission in lieu of a full application accept 
a partial application. 
(b) The Commission may require submission of a full application for approval for 
a change in ownership if: 
(1) the Commission has a reasonable basis to believe the change in ownership of 
the school may significantly affect the school's continued ability to meet the 
criteria for approval; or 
(2) the school fails to file notice of the change of ownership at least 45 days 
prior to the ownership transfer. 
(c) The Commission may require a partial application for approval for a change 
in ownership if the Commission reasonably believes the change in ownership will 
not significantly affect the school's continued ability to meet the criteria for 
approval. 
(d) The purchaser of a school shall accept responsibility for all refund 
liabilities. 

sec.807.15. Notification of Legal Action. 
(a) Unless otherwise instructed by the Commission, a school shall notify the 
Commission in writing of any legal action to which the school, any of its 
owners, representatives, or management employees is a party. 
(b) A school shall notify the Commission in writing of any legal action 
described in this section no later than five business days after the action is 
known to be filed or the school, owner, representative, or management employee 
is served.
(c) A school shall include, with the notice required in this section, a file-
marked copy of the petition, complaint, or other legal instrument, including 
copies of any judgments. 
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 July 27, 1998.
TRD-9811858
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER C. Financial Requirements
40 TAC sec.sec.807.31-807.37
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.33. Financial Requirements for Original Approvals. 
(a) The prospective owner shall furnish the Commission with the following: 
(1) for a school owned by a sole proprietor, a reviewed personal balance sheet 
with notes that disclose the amount of payments for the next five years to meet 
debt agreements as required by GAAP; or 
(2) for all other ownership structures, an audited balance sheet consistent with 
GAAP and GAAS and certified by an accountant. 
(b) The school shall submit a balance sheet, a list of the expected school-
related expenses for the first three months of operation of the school, and a 
sworn statement signed by the owner affirming the availability of sufficient 
cash to cover projected expenses at the date of licensure. A school currently 
operating, or proposing to operate, on a reimbursement contract basis may 
request a waiver of this section from the Commission. Projected expenses may 
include the following: 
(1) employee salaries, listed by position title, including withholding, 
unemployment taxes, and any other related expenses; 
(2) lease payments for equipment listed by the name of the equipment; 
(3) lease payments for facilities; 
(4) accounting, legal, and other specifically identified professional fees; and 
(5) an estimate of other expenses such as advertising, travel, textbooks, office 
supplies, classroom supplies, printing, telephone, utilities, taxes, and sales 
commissions. 
(c) The prospective owner shall also furnish such other evidence as may be 
deemed appropriate by the Commission to establish financial stability. 
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 July 27, 1998.
TRD-9811859
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER D. Representatives
40 TAC sec.sec.807.51-807.53
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.53. Representative Limitations.
(a) The representative shall not begin solicitation of students until the school 
receives notice of approval for the school and registration of the 
representative from the Commission. 
(b) Employees and other agents of recruiting firms shall not serve as 
representatives. 
(c) A representative shall not: 
(1) solicit in public places other than educational settings, job fairs, or 
organized meetings; 
(2) offer as an inducement or enticement any material consideration to a 
prospective student prior to enrollment, such as cash, food, housing, or gifts; 
(3) administer the entrance test; 
(4) advise students about financial aid, other than informing the students of 
the general availability of financial aid; 
(5) give false, misleading, or deceptive information about any aspect of the 
school's operation, programs, completion or employment rates, examination 
success rates, job placement, or salary potential; 
(6) concurrently solicit for or represent more than one school, unless the owner 
of each school being represented is informed that the representative is also 
soliciting for or representing other schools; 
(7) engage in acts or practices that have a tendency to intimidate, coerce, or 
mislead a prospective student into accepting an enrollment; 
(8) represent that a school or program has sponsorship, credentials, approval, 
characteristics, credit transferability, uses, benefits, or qualities that it 
does not have; 
(9) discredit another school or its programs by false or misleading 
representation of facts; 
(10) solicit enrollments in a program that has not been approved by the 
Commission; 
(11) solicit students for a school through an employment agency; or 
(12) violate any legal requirement or prohibition contained in the Act or this 
chapter. 
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 July 27, 1998.
TRD-9811860
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER E. School Director and Administrative Staff
40 TAC sec.sec.807.61-807.65
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.64. Director of Education Requirements. 
(a) A school may have a director of education. The Commission shall grandfather 
schools from meeting the director of education requirements contained in this 
section for a particular director of education provided that the school has 
submitted the application for approval of the director of education to the 
Commission prior to the effective date of this section and the application 
results in approval by the Commission. 
(b) If the school employs a director of education, the director shall meet the 
same qualifications as an instructor and, in addition, shall have: 
(1) one year of employment as a postsecondary instructor; 
(2) one year of employment as a supervisor; and 
(3) a bachelor's degree, appropriate for the skills required, as determined by 
the Commission. 

sec.807.65. Director of Degree Programs Requirements.
(a) A school with a degree program shall have a director of the degree programs 
as required by the Coordinating Board. The Commission shall grandfather schools 
from meeting the director of degree programs requirements contained in this 
section for a particular director of degree programs provided that the school 
has submitted the application for approval of the director of degree programs to 
the Commission prior to the effective date of this section and the application 
results in approval by the Commission. 
(b) A director of degree programs shall be of good reputation and have: 
(1) a master's degree with three years of work-related or administrative 
experience within the ten years immediately preceding employment by the school; 
or 
(2) a bachelor's degree with five years of work-related or administrative 
experience within the ten years immediately preceding employment by the school. 
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 July 27, 1998.
TRD-9811861
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER F. Instructors
40 TAC sec.sec.807.81-807.84
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.81. Instructor Qualifications. 
(a) The instructor shall be of good reputation and shall not be a current 
student in the same or similar program, as determined by the Commission, in 
which the instructor teaches. 
(b) Instructors shall possess and affirm on forms provided by the Commission 
that the instructor has one of the following qualifications that applies to the 
subject area to be taught. 
(1) The instructor has a master's degree or higher that: 
(A) includes satisfactory completion of six semester credit hours or eight 
quarter credit hours in the subject to be taught; 
(B) includes satisfactory completion of three semester credit hours or four 
quarter credit hours in the subject area and one year of related practical 
experience within the ten years immediately preceding employment by the school, 
if the subject to be taught is in a technical field; 
(C) includes satisfactory completion of three semester credit hours, or four 
quarter credit hours in the subject area to be taught, if the subject to be 
taught is in a non-technical field; or 
(D) includes one year of related practical experience in the subject to be 
taught within the ten years immediately preceding employment by the school, if 
the subject to be taught is in a non-technical field. 
(2) The instructor has a bachelor's degree that: 
(A) includes nine semester hours or 12 quarter hours related to the subject area 
to be taught; 
(B) includes satisfactory completion of six semester credit hours or eight 
quarter credit hours in the subject area to be taught and one year of related 
practical experience within the ten years immediately preceding employment by 
the school, if the subject to be taught is in a technical field; 
(C) includes satisfactory completion of three semester credit hours or four 
quarter credit hours in the subject area and one year of related practical 
experience within the ten years immediately preceding employment by the school, 
if the subject to be taught is in a non-technical field; or 
(D) includes two years of related practical experience within the ten years 
immediately preceding employment by the school. 
(3) The instructor has an associate's degree that: 
(A) includes satisfactory completion of nine semester credit hours or 12 quarter 
hours in the subject area to be taught and two years of related practical 
experience within the ten years immediately preceding employment by the school; 
or 
(B) includes three years of related practical experience within the ten years 
immediately preceding employment by the school. 
(4) The instructor has a secondary education if it includes a certificate of 
completion from a recognized postsecondary school for at least a 900 clock-hour 
program in a relevant subject area and four years of related practical 
experience within the ten years immediately preceding employment by the school; 
or 
(5) The instructor has proof of satisfactory completion of secondary education 
if accompanied by five years of related practical experience within the ten 
years immediately preceding employment by the school. 
(c) In addition to the other applicable requirements for instructors, including 
the good reputation requirement, the following qualifications apply to the 
specific instructors listed in this subsection. 
(1) The Commission requires that a court reporting instructor of only machine 
shorthand theory and speedbuilding shall have: 
(A) an associate's degree or higher and certificate of completion of machine 
shorthand theory requirements in an accredited court reporting program; 
(B) an associate's degree in court reporting from any state-recognized school; 
(C) a Registered Professional Reporter or Certified Shorthand Reporter 
certification from any state; or 
(D) a certificate of completion of a court reporting program from a state-
certified school. 
(2) The Commission requires that a court procedures and technology instructor 
shall have: 
(A) a Registered Professional Reporter or Certified Shorthand Reporter 
certification; and 
(B) one year of court reporting experience. 
(3) The Commission requires that a modeling instructor shall have, at a minimum: 
(A) a secondary education and certificate of completion from a modeling program 
of at least 45 clock hours from a state recognized school and at least five 
verifiable paid modeling jobs completed within the past five years; or 
(B) a secondary education and at least ten verifiable paid modeling jobs 
completed within the past five years. 
(4) The Commission requires that a truck driving instructor shall have, at a 
minimum: 
(A) a secondary education; 
(B) certified proof of successful completion of 40 clock hours in safety 
education and driver training as required by this chapter; and 
(C) three years of full-time tractor trailer driving experience within the ten 
years immediately preceding employment by the school. 
(5) The Commission requires that a bartending instructor shall be certified by 
the Texas Alcoholic Beverage Commission as having completed the required 
awareness course. 
(d) The director shall ensure that an instructor applicant demonstrates 
sufficient language to teach the subject for which the instructor is applying to 
teach. 
(e) The Commission shall grandfather schools from meeting the instructor 
requirements contained in this section for a particular instructor provided that 
the school has submitted the application for approval of the instructor to the 
Commission prior to the effective date of this section and the application 
results in approval by the Commission. 
(f) For those instructors who return to the school prior to one full year of 
absence, and who will be teaching the same subjects as previously approved, the 
school shall document the leave and reinstatement dates in the instructor's 
personnel file. When an instructor begins teaching new subjects or the absence 
was more than one year, the school shall submit a new application to the 
Commission. 

sec.807.83. Instructor Application.
(a) The school shall file an application for approval of an instructor on forms 
provided by the Commission in accordance with the following criteria and ensure 
that the instructor is of good reputation. 
(1) The application shall be postmarked within five calendar days of employment 
as an instructor subject to the conditions outlined in this subchapter. A school 
may employ an instructor pending approval by the Commission. 
(2) Depending upon the qualifications indicated on the application, the 
application shall include one or more of the following:
(A) a legible copy of the postsecondary certificate or degree, or a transcript 
indicating appropriate coursework completed, as applicable; 
(B) proof of a current occupational license; and 
(C) proof of secondary education. 
(b) A school with degree programs shall ensure that instructors are of good 
reputation and meet all the qualifications required by the Coordinating Board. 
(c) The Commission may consider current approvals of instructors by other Texas 
state agencies responsible for approval and regulation of the program, or any 
professional certifications held by the instructor when submitted with the 
Commission's instructor application. The Commission will accept notification, in 
lieu of a new instructor application, for any instructor that has a current 
approval by the Commission to teach the same subjects at other schools that have 
the same owners. 
(d) The Commission may require a school director to submit and receive approvals 
for instructor applications in advance of employing the instructors for a period 
of one year if the school has had three instructor applications finally 
disapproved within the previous two years. 

sec.807.84. School Responsibilities Regarding Instructors. 
(a) The school shall ensure that an appropriate number of instructors, as 
determined by the Commission, have proper licensure or certificates required for 
the stated occupation's objective. The holder of the license or certificate 
shall actively participate in program development and revisions. 
(b) The school shall ensure continuity of instruction through reasonable 
retention of instructors to provide students with a quality education. 
(c) The school shall implement, maintain, and update annually a written plan for 
staff development, which includes, at a minimum, continuing education, staff 
meetings, attendance at trade and professional conferences, and observation of, 
or participation in, on-the-job activities. 
(d) The school director or director of education shall formally evaluate each 
instructor in writing at least annually, subject to review by the Commission. 
(e) The school director or director of education shall ensure that students are 
allowed the opportunity to formally evaluate each instructor in writing at least 
annually and incorporate said evaluation in the instructor's overall evaluation. 
These student evaluations are subject to review by the Commission. 
(f) The school shall provide in-service training within the first three months 
of teaching to those instructors hired lacking teaching experience. In-service 
training includes planned professional development opportunities that enable 
inexperienced instructors to learn and develop effective teaching strategies and 
skills. Topics shall include competency-based training, instructional methods, 
adult learning styles, and student learning and skills assessment. Competency-
based training specifies the skills and skill levels required to complete a 
training program, develops and organizes teaching and learning methods to enable 
students to achieve the identified skills and levels of proficiency, and uses 
criterion-referenced evaluation to measure achievement. 
(g) The school shall provide and document in-service training that provides 
updates on skills, knowledge, and technology required by business and industry 
for those instructors who have taught for two years, but have not gained 
relevant work experience during the two-year period. 
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 July 27, 1998.
TRD-9811862
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER G. Courses of Instruction
40 TAC sec.sec.807.91-807.104
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.92. General Information for Courses of Instruction. 
(a) A school submitting applications for approval of seminars shall use 
abbreviated forms provided by the Commission. 
(b) No subject or program shall be approved by the Commission unless the school 
demonstrates that the program's quality, content, and length reasonably and 
adequately impart the job skills and knowledge necessary for the student to 
obtain employment in the stated occupation. 
(c) A school may not solicit students, otherwise advertise, or conduct classes 
for a program prior to the Commission's approval of the program. Any such 
activity by the school, prior to the Commission's approval of the program, shall 
constitute a misrepresentation by the school and shall entitle each student in 
the program to a full refund of all tuition and fees paid by the student and 
release from all obligations. 
(d) The school shall establish and maintain a formal advisory committee of at 
least five members, unless the Commission approves a lesser number of persons in 
advance, for each type of program in excess of 200 clock hours in length. At 
least annually, the committee shall evaluate the curriculum, instructional 
materials and media, equipment, and facilities to ensure they meet the needs of 
the job market. The school shall have written documentation of the evaluation 
available for review by the Commission. If the school does not follow an 
advisory committee recommendation, the school shall maintain written 
documentation of the justification for not following the recommendation. 
(e) If the applicant requests approval to measure programs in credit hours, the 
following conversion table shall be used. 
(1) One academic quarter credit hour equals a minimum of:
(A) 10 clock hours of classroom lecture; 
(B) 20 clock hours of laboratory experience; or 
(C) 30 clock hours of externship. 
(2) One academic semester credit hour is equal to a minimum of: 
(A) 15 clock hours of classroom lecture; 
(B) 30 clock hours of laboratory experience; or 
(C) 45 clock hours of externship. 
(3) The school shall calculate lecture, laboratory, and externship credit hour 
conversions individually for each subject, rounding down to the nearest half 
credit hour. The school shall add the total for the credit hours for lecture, 
laboratory, and externship to determine the total credit hours for a subject. 

sec.807.93. Applications for Additional Courses of Instruction. 
(a) A school applying for approval of an additional program, after receiving an 
original certificate of approval, shall submit a complete application that 
includes: 
(1) the appropriate fee; 
(2) a completed application for program approval on forms provided by the 
Commission; and 
(3) any other revisions or evidence as requested by the Commission. 
(b) The Commission may require an abbreviated program application if: 
(1) the school has the exact program approved at another location; 
(2) the program objective changes; 
(3) the program length changes 25% or more; or 
(4) the school's completion and employment rates are exemplary, as determined by 
the Commission. 
(c) The Commission may deny an application for approval of an additional program 
if the school is not in full compliance with the Act or this chapter. 

sec.807.94. Stated Occupation. 
(a) The school shall ensure that each program prepares the student for the 
stated occupation. 
(b) The school shall demonstrate that a student who successfully completes the 
program is more likely to be employed in the stated occupation than an 
individual who does not complete the program, all other things being equal. 
(c) The school shall identify a demonstrable occupational demand for the stated 
occupation. The Commission may consider the following in evaluating the school's 
statement of occupational demand: 
(1) publications of established relevant occupational associations; 
(2) targeted occupation lists of boards, if approved by the Commission, or other 
local or state entities; 
(3) references to advertisements in media for employment; 
(4) occupation employment rate of students; 
(5) percentage of graduating students who have previously completed the same or 
substantially similar program and who have obtained employment in the same or 
substantially similar stated occupation for which they have been trained; 
(6) relative supply and demand for the stated occupation, including letters from 
potential employers that describe their need for trained employees; and 
(7) reports or publications relating to the specific occupational demand. 

sec.807.95. Curriculum Content. 
(a) The school shall: 
(1) provide competency-based programs; 
(2) assess skills using primarily performance-based methods; 
(3) use instructional media, methods, and materials appropriate for the program 
content and students' knowledge and abilities; 
(4) offer programs in a logical sequence of knowledge and skills; and 
(5) if deemed appropriate by the Commission, provide an externship or a 
simulation of the workplace for the program. 
(b) Each subject in the program shall teach the practical skills and knowledge 
required for employment in the stated occupation. The proportion of lecture, 
laboratory, and externship hours for each subject and for the program shall be 
reasonable for the skills and knowledge to be learned for the stated occupation. 
(c) The Commission may use or validate existing skill standards or competencies, 
or develop statewide skill standards with the assistance of industry, schools, 
and other relevant entities as determined by the Commission. 

sec.807.101. School Responsibilities Regarding Programs.
(a) As a condition of program approval or renewal, the school shall identify any 
portion of instruction that is self-paced. 
(b) To maintain program approval, the school shall demonstrate the following: 
(1) a reasonable student completion rate for each program; and 
(2) a minimum employment rate for program graduates in jobs related to the 
stated occupation. 
(c) When a school is approved to offer a program, the school shall maintain 
sufficient instructors to teach all subjects for completing the program during 
the length of time stipulated in the school catalog, regardless of the size of 
the class. 
(d) The school shall schedule classes so that students will be able to complete 
the program during the length of time stipulated in the school catalog. 
(e) The school shall ensure that students receive the lecture and laboratory 
experience hours with sufficient instructors and scheduling. An instructor may 
not be simultaneously supervising a laboratory experience and a lecture even if 
they are in the same room. 
(f) A school shall provide course outlines to students at the beginning of each 
subject which lists students' performance objectives, references and resources, 
and a general content outline for the subject.
(g) A school shall have and use lesson plans for all subjects. 
(h) A school may not use subjects from one or more approved programs to create a 
new program and award a certificate of completion without prior approval. 
(i) The student-to-instructor ratio shall be sufficient for students to learn, 
practice, and demonstrate the necessary knowledge and skills. These ratios may 
be varied at the discretion of the Commission to conform to conditions in an 
individual school. The following student-instructor ratios may be acceptable for 
single subject classes: 
(1) business lecture or laboratory--30 to one;
(2) technical, vocational, or allied health lecture--30 to one; 
(3) technical lab (examples: computer programming, data processing, 
electronics)--20 to one; 
(4) vocational lab (examples: auto mechanics, air conditioning and 
refrigeration, drafting)--20 to one; and 
(5) intensive language instruction (beginning)--15 to one; (intermediate to 
advanced)--20 to one. 
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 July 27, 1998.
TRD-9811863
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER D. Veterans Approval for Proprietary Schools
40 TAC sec.807.101
The repeal is adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provide the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 
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 July 27, 1998.
TRD-9811875
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER H. Application Fees and Other Charges
40 TAC sec.sec.807.111-807.113
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.111. Fee Schedule. 
The Commission shall collect fees according to the following schedule. 
(1) The initial fee for a certificate of approval for a small school is $1,001. 
(2) The initial fee for any other school is $3,000. 
(3) In the event of a change in ownership of the school, the new owner shall pay 
the same fee as that charged for an initial fee for a school. 
(4) The initial registration fee for a representative is $90. 
(5) The annual renewal fee for a representative is $45. 
(6) The fee for a change of name of the school or owner is $150. 
(7) The fee for a change of address of a school is $270. 
(8) The fee for a change in the name or address of a representative or a change 
of the name or address of a school that causes the reissuance of the notice of 
permitted representative is $15. 
(9) The application fee for a course of instruction that is an additional 
program is $225. 
(10) The application fee for a course of instruction that is a seminar program 
is $35. 
(11) The application fee for a school director, administrative staff member, or 
instructor is $20. 
(12) The fee for an inspection of classroom facilities that are separate from 
the main campus is $375. 
(13) The fee for an investigation of a complaint against a school is $400, if 
assessed. 
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 July 27, 1998.
TRD-9811864
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER E. Minimum Standards for Operation of Texas Proprietary Schools
40 TAC sec.sec.807.121-807.131
The repeals are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provide the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 
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 July 27, 1998.
TRD-9811876
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER I. Advertising
40 TAC sec.sec.807.121-807.126
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.124. Financial Incentives. 
(a) Advertisements shall not: 
(1) state that students shall be guaranteed employment while enrolled in the 
school; 
(2) state that employment shall be guaranteed for students after graduation; or 
(3) misrepresent opportunities for employment upon completion of any program. 
(b) Advertisements shall not contain dollar amounts as representative or 
indicative of the earning potential of graduates unless those dollar amounts 
have been published by the United States Department of Labor. This provision 
shall not be construed as prohibiting the school from providing earning 
potential to the student individually on the student's receipt of enrollment 
policies or other such Commission-approved document. 
(c) Advertisements for student tuition loans shall: 
(1) contain the language "financial aid available, if qualified"; and 
(2) appear in type no larger than the font used for the name of the school and 
in similar color and style. 
(d) Advertising of student tuition loans as described in this section does not 
preclude disclosure of the school's eligibility under the various state and 
federal loan programs. 

sec.807.125. Catalog. 
(a) The catalog shall include the following: 
(1) table of contents or index; 
(2) name and complete street address of the school; 
(3) volume number, date of publication, and effective dates; 
(4) history of any accreditations or approvals, including statement of approval 
and regulation by the Commission; 
(5) description of space, facilities, and equipment; 
(6) list of all trustees, directors, officers of the corporation, and owners; 
(7) list of management staff and faculty, including education relating to the 
areas of instruction; 
(8) tuition, fees, other charges, and applicable scholarship terms; 
(9) school calendar; 
(10) school hours of operation and class schedule, including the amount of time 
allocated for breaks and mealtimes; 
(11) policies regarding enrollment, previous education credit, cancellation and 
refund, progress, attendance, leave of absence, and conduct; 
(12) veterans administration refund policy, if applicable; 
(13) description of courses of instruction, including the number of clock hours 
of a seminar, seminar topic, lecture, lab, and externship, as well as credit 
hours in each subject, if applicable; 
(14) description of each subject; 
(15) description of the grading policy, including requirements for graduation; 
(16) description of placement assistance, if available; 
(17) statement of polices regarding grievances; and 
(18) a statement signed by the owner or director indicating that all of the 
information contained in the catalog is true and correct.
(b) Any subjects defined as self-paced shall be noted as such in the catalog. 

sec.807.126. Advertisement Monitoring.
(a) The Commission may order corrective action to counteract the effect of 
advertising in violation of the Act or rules, including: 
(1) retraction by the school of such advertising claims published in the same 
manner as the claims themselves; and 
(2) cancellation of telephone numbers without an automatic forwarding message. 
(b) As corrective action for violations of the Act or rules, the Commission may 
require schools to submit all advertisements to the Commission for pre-approval 
at least 30 days before proposed submission of the advertisements to the 
advertising medium. 
(c) Nothing in these guidelines shall prohibit release of information to 
students as required by a state or federal agency. 
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 July 27, 1998.
TRD-9811865
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER J. Admission
40 TAC sec.sec.807.141-807.147
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.143. Receipt of Enrollment Policies. 
(a) For all enrollments other than for seminars, individual subjects, and small 
schools with programs of 40 clock hours or less, each school shall use a form 
provided by the Commission to verify the prospective student's receipt of the 
information required in this section. 
(b) Unless otherwise required in this chapter, prior to enrollment the school 
shall furnish the following to each prospective student: 
(1) a school catalog and program outline, unless the prospective student enrolls 
in a seminar; 
(2) a schedule of tuition, fees, and other charges; 
(3) the cancellation and refund policy; 
(4) the attendance, progress, and grievance policies; 
(5) the rules of operation and conduct; 
(6) if available, the average starting salary per pay period and annually for 
the prospective student's stated occupation, and information regarding the 
number of job openings in the program objective field in a specified area within 
the last 12 months, including the name of the information source; 
(7) the regulations pertaining to incomplete grades; 
(8) written and verbal information regarding loans and grants and their 
differences, if the school participates in a loan or grant program; 
(9) the requirements, if any, for any state or national licensing, 
certifications, or registrations; 
(10) the exam passage rates for programs that prepare students for state 
licensing, certification, or registration exams; and 
(11) the job placement and employment data for the stated occupation as required 
in this chapter. 
(c) Any school that refers to the awarding of credit hours shall explain to each 
student during the enrollment process that transferability of such hours may be 
limited. Each student shall sign a statement indicating such an explanation has 
been provided. 
(d) Should a school have an articulation agreement with an accredited college or 
university, or other postsecondary school, such information shall be provided to 
the student, including any known agreement limitations. Such schools shall also 
provide a list of known Texas postsecondary schools that accept any or all of 
the credit hours so earned. 
(e) Students shall acknowledge receipt of each piece of information or 
documentation as set forth in this section by initialing each page and providing 
a complete signature at the end of the receipt of the enrollment policy form. 
(f) A copy of the receipt of the enrollment policies form shall be given to the 
student and a copy maintained as a part of the student's files. 

sec.807.144. Enrollment Agreement. 
(a) A school does not need an enrollment agreement to enroll a student in a 
seminar. 
(b) For correspondence schools, the enrollment agreement shall specify the 
amount of time allotted to the student to complete the program.
(c) A school shall submit an enrollment agreement to the Commission for 
approval. 
(d) A school shall use only an approved enrollment agreement to enroll students. 
(e) The executed enrollment agreement shall include, but is not limited to, the 
following: 
(1) full and correct name and location of the school; 
(2) program title, tuition, fees, reasonable estimate cost of books and 
supplies, any other expenses, total cost of the program, items subject to cost 
change, method of payment and payment schedule, disclosure statement if interest 
is charged on more than three payments, and detachable buyer's right to cancel 
if enrollment is procured off campus; 
(3) date training is to begin and program length; 
(4) name, address, and signature of the student; 
(5) statement by the school that the student will receive a copy of the school 
enrollment agreement and catalog at the time of signing by the student; 
(6) cancellation and refund policy; and 
(7) a Federal Trade Commission statement for holder in due course, unless no 
loans, grants, or installment payments are involved. 
(f) The school shall provide a notice of cancellation, attached to the 
enrollment agreement, for any student enrolled off the school premises. The 
notice shall: 
(1) be in duplicate; 
(2) be easily detachable; 
(3) be printed in boldface type, with a minimum font of 10 point; 
(4) contain the date of the enrollment agreement, name and address of school, 
the date on which the statutory 72-hour cancellation privilege will expire, and 
any other provisions as determined by the Commission; 
(5) be printed in the same language as used in the enrollment agreement; and 
(6) be in such a form that can be used by the student to notify the school of 
the student's desire to cancel by dating, signing, and mailing or otherwise 
delivering the form to the school's address shown.
(g) A copy of the enrollment agreement form shall be given to the student and a 
copy maintained as a part of the student's file. 
(h) The Commission may permit a school to submit an abbreviated enrollment 
agreement for students enrolled on a reimbursement contract basis.

sec.807.146. Tuition and Fees. 
(a) A school shall disclose to potential students all tuition, fees, and other 
charges, and state such information in the school's application for a 
certificate of approval. 
(b) A school shall make available for review by the Commission upon request: 
(1) a description of the methods of payment that are available to enrolling 
students; 
(2) the names and addresses of lending institutions used by the school for 
student tuition loans; and 
(3) the true annual percentage rate and any other fees or charges associated 
with student tuition loans. 
(c) A school shall refund or forfeit any tuition, fees, or other charges not 
previously disclosed to the Commission. 
(d) A school may offer scholarships providing the terms of scholarships are 
disclosed to the Commission. 
(e) The school shall maintain, in a permanent format that is acceptable and 
readily accessible to the Commission, a record of any funds received from, or on 
behalf of, the student. A school shall clearly identify the payor, the type of 
funding, and the reason for the charges. These records shall be posted and kept 
current. 
(f) A school shall issue written receipts of any charges or payments to the 
student and maintain such records for review upon request by the Commission. 
Each separately charged item shall be clearly itemized on a student-signed 
receipt. 
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 July 27, 1998.
TRD-9811866
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER K. Progress Standards
40 TAC sec.sec.807.161-807.164
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 
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 July 27, 1998.
TRD-9811867
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER L. Attendance Standards
40 TAC sec.sec.807.171-807.175
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.173. Termination of Enrollment.
(a) A school shall terminate the enrollment of a student who accumulates the 
lesser of the following amounts of absences: 
(1) more than 10 consecutive school days; 
(2) more than 20% of the total clock hours in a program of more than 200 clock 
hours; 
(3) more than 25% of the total clock hours, if the program or individual subject 
is 41 to 200 clock hours in length; 
(4) more than 25% of the total clock hours for seminars, individual subjects, or 
programs of 40 clock hours or less; or 
(5) any number of days if the student fails to return as scheduled from an 
approved leave of absence. 
(b) Students whose enrollments are terminated for violation of the attendance 
policy may not reenroll before the start of the next progress evaluation period. 
This provision does not circumvent the approved refund policy. 

sec.807.174. Make-up Work.
(a) No more than 5% of the total clock hours for a program may be made up. 
(b) The school shall submit make-up work policies to the Commission for 
approval. 
(c) Make-up work shall: 
(1) be supervised by an instructor approved for the subject being made up; 
(2) require the student to demonstrate substantially the same level of knowledge 
or competence expected of a student who attended the scheduled class session; 
(3) be completed within two weeks of the end of the grading period during which 
the absence occurred; 
(4) be documented by the school as being completed, recording the date, time, 
duration of the make-up session, and the name of the supervising instructor; and 
(5) be signed and dated by the student to acknowledge the make-up session. 

sec.807.175. Leaves of Absence.
(a) Seminars and small schools with programs of 40 clock hours or less shall not 
grant leaves of absence. 
(b) A school director may grant a leave of absence after determining that good 
cause is shown. A leave of absence may not exceed the lesser of 30 school days 
or 60 calendar days. 
(c) A school shall grant a student only one leave of absence per 12-month 
calendar period. 
(d) School attendance records shall clearly define the dates of the leave of 
absence. A written statement as to why the leave of absence was granted, signed 
by both the student and the school director indicating approval, shall be placed 
in the student's permanent file. 
(e) In addition to the requirements concerning leaves of absence in this 
subchapter, a school offering degree programs that schedules their courses on an 
academic quarter or academic semester basis may include in their attendance 
policies provisions for summer leaves of absence. These leaves of absence shall 
not exceed the lesser of 120 days or the interval between the end of the spring 
academic quarter or academic semester and the start of the fall academic quarter 
or academic semester. 
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 July 27, 1998.
TRD-9811868
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER M. Cancellation and Refund Policy
40 TAC sec.sec.807.191-807.194
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 
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 July 27, 1998.
TRD-9811869
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER N. Records
40 TAC sec.sec.807.211-807.214
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.213. Attendance Record Keeping.
(a) A school offering seminars or other programs where students do not change 
instructors during the school day, are not required to maintain a separate 
master record of attendance. 
(b) A school shall maintain a master record of attendance on each student that 
clearly indicates the number of scheduled hours each day and the hours of 
absence. 
(c) Each instructor shall maintain a record of attendance, which shall indicate 
a positive record of each student's attendance. Entries in the record of 
attendance shall be made in ink or other permanent medium, including scantron or 
other permanent computer records, and shall not be changed in a manner that 
precludes reading the original entry. 
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 July 27, 1998.
TRD-9811870
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER O. Complaints
40 TAC sec.807.221, sec.807.222
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 
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 July 27, 1998.
TRD-9811871
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER P. Truck Driver Training Programs
40 TAC sec.sec.807.231-807.235
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 

sec.807.231. General Information Relating to Truck Driver Training. 
A school providing truck driver training shall ensure that the truck driver 
instructors complete a 40 clock hour truck driver instructor development course. 

sec.807.232. Truck Driver Instructor Development Course.
(a) A school shall apply to the Commission for approval to provide a truck 
driver instructor development course. 
(b) The instructor development course shall consist of 40 clock hours, which 
includes at least the following topics. 
(1) Five hours shall cover techniques of instruction including: qualities of a 
competent instructor, the learning process, methods of teaching, development of 
efficient teaching habits, demonstration teaching, the use of instruction 
material and training aids, course preparation, lesson plans, testing and 
evaluation, and the duration and frequency of lessons. 
(2) Two hours shall cover personality factors affecting the driver and 
pedestrian including: natural abilities; senses; mind and nerves; bones and 
muscles; knowledge of vehicle, road, traffic, and self; attitudes and emotions; 
reaction time; and reactions to alcohol, carbon monoxide, over-the-counter 
drugs, prescription drugs, illegal drugs, heart ailments, epilepsy, diabetes, 
insanity, exhaustion, tension, and monotony. 
(3) Six hours shall cover state laws as located in the Texas Motor Vehicle Law 
book relating to the operation of motor vehicles including: driver's license, 
vehicle registration, certificate of title, operation of vehicles, uniform act, 
miscellaneous offenses, and safety responsibility.
(4) Eight hours shall cover driving procedures including: handling--city, rural, 
night, mountain, and freeway driving; fog, rain, sandstorms, and other hazardous 
weather conditions; road hazards and recovery procedures for slick roads; 
blowout hazards and running off the road; traffic signs, markings, and signals; 
use of rearview mirrors; vehicle braking and stopping distances; following 
distances; right-of-way, when and how to yield it; vehicle acceleration and 
deceleration; yielding right-of-way to emergency vehicles; driver signals; 
proper passing procedures; procedures and problems for passing on two and three-
lane roadways; and super-size motorized equipment. 
(5) Three hours shall cover physical forces affecting the motor vehicle in 
motion including: forces of gravity; friction; acceleration, mass, and force; 
inertia and centrifugal force; kinetic energy and momentum; kinetic energy and 
braking; and horsepower and acceleration. 
(6) Two hours shall cover highway characteristics including: primary, secondary, 
expressway, freeway, farm or ranch road, two-way two-lane, two-way three-lane, 
two-way multilane, two-way multilane divided, one-way multilane, parking, and 
traffic controls. Traffic control topics consist of the following: 
(A) sign topics including shape, color, location and importance; 
(B) traffic marking topics including center and lane lines, no passing zone, 
transition markings, turn lane marking, stop lines, crosswalk lines, etc.; and 
(C) signal topics including classification, location, type, timing. 
(7) Two hours shall cover automobile systems and maintenance including: 
electrical system--generator, alternator, battery, lighting, and electric-
powered equipment; cooling system--lubrication and fuel systems; power train--
engine, transmission, and differential; brake system--wheels and tires, caster, 
camber, toe-in, balance, inflation, tire condition, and care; exhaust system; 
instruments and gauges; compartment adjustments--seat, ventilation, mirrors, 
headrests, seat belts, and shoulder harness; starting the engine and warm-up 
procedures; safety devices--door locks, headrests; and miscellaneous features--
windshield wipers, heater, and defroster. 
(8) Two hours shall cover behind-the-wheel elementary lessons with demonstration 
in an appropriate vehicle and practice to be performed in the presence of the 
instructor including: starting; steering; stopping; shifting gears; backing; 
turning--right and left; and parking and starting on grade. 
(9) Six hours shall cover behind-the-wheel driving safety lessons with 
demonstration in an appropriate vehicle and practice to be performed in the 
presence of the instructor including: developing good seeing habits; speed 
control; safe following; lane driving and lane changing; intersections and 
right-of-way; proper signaling; correct turn procedures; detecting of and 
handling problems--vehicle, cycle, pedestrian; freeway driving--ramp use, 
entering, exiting, lane use, emergency stopping; parking procedures; entering 
traffic from parked position; and night driving. 
(10) Two hours shall cover school and instructor approval requirements including 
the following: school approval requirements, instructor approval requirements, 
classroom and automotive equipment requirements, required student records, 
contract requirements, and deportment of instructors. 
(11) Two hours shall cover specialized training regarding the following: 
students with physical, mental, or emotional handicaps; illiterate students; 
non-English-speaking students; and habitual violators and problem drivers. 

sec.807.235. Prohibited Activities Regarding Truck Driver Training. 
(a) A school, a trainer of truck driver instructors, or a truck driver 
instructor shall not: 
(1) allow an instructor to give instruction or allow a student to secure 
instruction in the classroom or in a motor vehicle if that instructor or student 
is using or exhibits any evidence or effect of an alcoholic beverage, controlled 
substance, or other such impairment; 
(2) permit a student to operate a motor vehicle without a valid driver's license 
or instruction permit in the student's possession during behind-the-wheel 
instruction; 
(3) permit more than a ratio of four students per vehicle and three vehicles per 
instructor on truck driving ranges; 
(4) permit more than four students per vehicle per instructor during street 
instruction for truck driver training; or 
(5) advertise or otherwise state or imply that a driver's license or permit is 
guaranteed or assured to any student or individual who may take or complete any 
instruction or course of instruction, enroll, or otherwise receive instruction 
in any truck driver training school. 
(b) The Commission may suspend, revoke, or refuse to renew approval of a truck 
driver instructor or a trainer of truck driver instructors, upon determining 
that the applicant or instructor has been: 
(1) convicted under the laws of this state, another state, or the United States 
of any felony; of an offense of criminally negligent homicide committed as a 
result of the person's operation of a motor vehicle; of an offense involving 
driving while intoxicated or under the influence; or of an offense involving 
tampering with a governmental record; or 
(2) found incompetent or is incompetent to: 
(A) safely operate a motor vehicle; or 
(B) properly conduct classroom or behind-the-wheel instruction. 
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 July 27, 1998.
TRD-9811872
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER Q. Closed Schools
40 TAC sec.807.251, sec.807.252
The new rules are adopted under Texas Labor Code, sec.301.062 and 302.001, which 
provides the Commission with the authority to adopt, amend, or repeal such rules 
as it deems necessary for the effective administration of Texas Labor Code, 
Title 4, Subtitles A and B. 
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 July 27, 1998.
TRD-9811873
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: August 16, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8812

TITLE 43. TRANSPORTATION
PART I. Texas Department of Transportation
CHAPTER 7.Bridge Division
The Texas Department of Transportation adopts the repeal of sec.sec.7.41, 7.61, 
and 7.71, concerning railroad crossings. Sections 7.41, 7.61 and 7.71 are 
adopted without changes to the proposed text as published in the Texas Register 
on May 22, 1998 (23 TexReg 5417) and will not be republished. 
EXPLANATION OF ADOPTED REPEALS 
Title 43 of the Texas Administrative Code contains rules concerning railroad 
grade crossings under both Chapter 7, Bridge Division, and Chapter 25, Traffic 
Operations. The Bridge Division of the Texas Department of Transportation was 
merged into another division in a 1993 reorganization of the department. The 
railroad function of that division was transferred into the Traffic Operations 
Division. Repeal of these sections is necessary because the subject matter of 
these sections more appropriately falls within Chapter 25. 
Sections 7.41, 7.61, and 7.71 will be re-enacted as new sec.sec.25.74-25.76 to 
incorporate the repealed language and consolidate department rules on railroad 
crossings in one chapter. 
RESPONSE TO COMMENTS 
No comments were received. 

SUBCHAPTER D.Railroad Underpasses
43 TAC sec.7.41
STATUTORY AUTHORITY 
The repeal is adopted under Transportation Code, sec.2001.101, which provides 
the Texas Transportation Commission with the authority to establish rules for 
the conduct of the work of the Texas Department of Transportation. 
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 August 3, 1998.
TRD-9812172
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Effective date: August 23, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER E.Railroad Spur Tracks
43 TAC sec.7.61
STATUTORY AUTHORITY 
The repeal is adopted under Transportation Code, sec.2001.101, which provides 
the Texas Transportation Commission with the authority to establish rules for 
the conduct of the work of the Texas Department of Transportation. 
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 August 3, 1998.
TRD-9812173
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Effective date: August 23, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER F.Railroad Grade Crossings
43 TAC sec.7.71
STATUTORY AUTHORITY 
The repeal is adopted under Transportation Code, sec.2001.101, which provides 
the Texas Transportation Commission with the authority to establish rules for 
the conduct of the work of the Texas Department of Transportation.
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 August 3, 1998.
TRD-9812174
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Effective date: August 23, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8630

CHAPTER 25.Traffic Operations
SUBCHAPTER E.Railroad Crossings
43 TAC sec.sec.25.70-25.72, 25.74-25.76
The Texas Department of Transportation adopts amendments to sec.sec.25.70-25.72, 
and new sec.sec.25.74-25.76, concerning railroad crossings. Sections 25.72, 
25.74 and 25.76 are adopted with changes to the proposed text as published in 
the Texas Register on May 22, 1998 (23 TexReg 5418). Sections 25.70, 25.71, and 
25.75 are adopted without changes and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS AND NEW SECTIONS 
Title 43 of the Texas Administrative Code contains rules concerning railroad 
crossings under both Chapter 7, Bridge Division, and Chapter 25, Traffic 
Operations. The Bridge Division of the Texas Department of Transportation was 
merged into another division in a 1993 reorganization of the department. The 
railroad function of that division was transferred into the Traffic Operations 
Division. Adoption of the new sections are necessary to replace the provisions 
of sec.sec.7.41, 7.61, and 7.71, concerning railroad crossings. Sections 7.41, 
7.61, and 7.71 are being contemporaneously proposed for repeal because the 
subject matter of the repealed sections more appropriately fall within Chapter 
25. Sections 25.70-25.72 are being amended to make minor and non-substantive 
corrections
Amended sec.25.70 revises the existing purpose and scope of this subchapter to 
allow for incorporation of new sec.sec.25.74-25.76 concerning maintenance of 
railroad underpasses, spur track crossings, and the crossing and maintenance of 
highway-railroad crossings. Previously, this subchapter dealt only with warning 
signs and signals at railroad crossings. 
Amended sec.25.71 changes the reference from the Interstate Commerce Commission 
to the United States Department of Transportation. This change is proposed to 
reflect the current organization of the United States Department of 
Transportation. Also added are definitions for railroad overpasses and 
underpasses. The definitions have been numbered in accordance with Texas 
Register requirements. 
Amended sec.25.72 changes the term "accident" to "crash" to reflect current use 
of that term among transportation planners and professionals. 
New sec.25.74 outlines the responsibility of the railroad companies and the 
state as they relate to maintenance and damage costs. 
New sec.25.75 clarifies that an interstate highway includes the frontage roads 
where technically feasible. This change is to clarify that any spur track 
crossing an interstate highway through an initial separation of grades will also 
include consideration of the frontage roads. 
New sec.25.76 clarifies that a railroad is responsible for maintaining a 
highway-railroad crossing from end to end of the railroad ties, as opposed to 
the existing language which states "between the rails and in the proximity of 
the same". This change reflects current practice between the department and 
railroad companies. 
RESPONSE TO COMMENTS 
No comments were received on the proposed amendments and new sections, however, 
to clarify and make the sections more consistent in wording the department is 
adopting with non-substantive changes to sec.sec.25.72, 25.74 and 25.76.
Section 25.72 is adopted with changes to subsection (c)(2)(A) by adding the word 
"vehicle" to read "average daily vehicle traffic." The reference to the 
Contested Case procedure in subsection (f) is changed to read "sec.sec.1.21, et 
seq." instead of sec.sec.1.21-1.61. 
Section 25.74 is revised by deleting the term "of the department" when it 
appears after the words "district engineer." In sec.25.76, all references to the 
word "railway" have been changed to "railroad." 
STATUTORY AUTHORITY
The amendments and new sections are adopted under Transportation Code, 
sec.2001.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of the work of the Texas Department 
of Transportation.

sec.25.72.Dismantling Warning Signals at Railroad Grade Crossings.
(a) Purpose. In accordance with Texas Civil Statutes, Article 6370d, a person 
may not dismantle a warning signal at a grade crossing on an active rail line, 
as defined in sec.25.71 of this title (relating to Definitions), if the cost of 
the warning signal was originally paid either entirely or partly from public 
funds, unless the person: 
(1) obtains a permit from the governmental entity that maintains the road or 
highway that intersects the rail line at the grade crossing; and 
(2) pays to the governmental entity that maintains the road or highway that 
intersects the rail line at the grade crossing an amount equal to the present 
salvage value of the warning signal, as determined by the governmental entity 
under applicable law. 
(b) Permit application. 
(1) This subsection applies to warning signals at railroad grade crossings on a 
rail line that intersects a highway maintained by the department. 
(2) An applicant for a permit to dismantle a warning signal must submit an 
application, on a form prescribed by the department, to the department's 
district office in the district where the warning signal is located. The 
application must be accompanied by a statement certifying the justification for 
the request to dismantle the warning signal. If the applicant is a corporation, 
the application must be accompanied by a resolution from the board of directors 
certifying the justification for the request to dismantle the warning signal. 
(c) Conditional approval. 
(1) The district engineer will approve the application conditioned on payment of 
salvage value if, based on information provided in the permit application and 
the accompanying justification, he or she determines that removal of the warning 
signal would not adversely affect public safety. 
(2) The district engineer will consider the following factors in determining if 
removal of the warning signal would adversely affect public safety: 
(A) current and projected average daily vehicle traffic using the grade 
crossing; 
(B) the nature or type of vehicle traffic using the grade crossing; 
(C) the total daily number and speed of trains conducted through the grade 
crossing; 
(D) the nature or type of train operations conducted through the grade crossing; 
(E) the sight distance in each quadrant on the roadway approaches to the grade 
crossing; and 
(F) train-involved and non-train-involved crash history at the grade crossing. 
(d) Salvage value. Upon approval of an application, the department will assess 
the salvage value of the warning signal and inform the applicant of its 
assessment. 
(e) Permit issuance. Upon receipt of payment of the assessed salvage value of 
the signal, the department will issue a permit for removal of the warning 
signal. 
(f) Appeal process. An applicant may appeal the denial of a permit or the 
assessment of salvage value to the director. An applicant may appeal an adverse 
decision of the director by filing a petition for an administrative hearing 
pursuant to sec.sec.1.21, et seq. of this title (relating to Contested Case 
Procedure). 
(g) Other governmental entities. A person desiring to dismantle a warning signal 
at a grade crossing may request the department to determine what governmental 
entity is responsible for maintaining the intersecting road or highway and 
whether the warning signal was originally paid either entirely or partly from 
public funds by submitting a request to the department's district office in the 
district where the warning signal is located. 
(h) Exempt railroads. The provisions of this section shall not apply to Class I 
or Class II railroads as defined by United States Department of Transportation 
rules and regulations.

sec.25.74.Maintenance of Railroad Underpasses.
(a) The department assumes the maintenance of railroad underpass substructure 
units, consisting of the piers, abutments and wingwalls but excluding any 
existing timber substructure for approach spans. Except as provided in 
subsection (b) of this section, the railroad companies have the maintenance 
responsibility for the underpass superstructure, including the beams, shoes, 
deck, waterproofing, and track structure. 
(b) In the event of damage to the underpass superstructure, beams and/or deck, 
by highway traffic, the state will assume the cost of repairs. In such cases it 
will be necessary for the railroad representative and the district engineer to 
agree on the extent of repairs. Upon notification by the railroad company, an 
agreement will be prepared for execution and a job set up based on the estimated 
cost of repairs. This work will be performed by railroad forces or contract as 
may be agreed upon by the railroad representative and the district engineer. 
Work of an extreme emergency nature may be undertaken by the railroad company 
upon approval of the district engineer prior to execution of a formal state-
railroad agreement to cover the proposed repairs. However, no work will be paid 
for by the state which is undertaken by the railroad company prior to issuance 
of a work order by the district engineer. 
(c) These provisions for maintenance of underpass substructure units and 
assumption of costs for repair of damage to superstructure spans caused by 
highway traffic, as noted in subsection (b) of this section, apply only to 
underpass structures constructed or reconstructed after October 28, 1960.

sec.25.76.Crossing and Maintenance of Highway-Railroad Grade Crossings.
(a) The department, in the expansion, construction, reconstruction, and 
maintenance of the State Highway System, finds it necessary from time to time to 
cross the tracks of a railroad at grade or to improve existing highway-railroad 
grade crossings. 
(b) The railroad companies will furnish to the department, free of cost, the 
necessary right of way, easement, or license for such grade crossings. In 
recognition of these rights, the department will pay, from available revenues, 
the cost of construction and reconstruction of all highways and farm-to-market 
roads at their grade crossings with existing railroads. The obligation of 
maintenance is to remain with the railroad company on that portion from end to 
end of the railroad ties. On new farm-to-market road projects the clearing of 
the right of way, including utility line adjustments, cattle guard adjustments, 
etc., is the responsibility of the county involved. 
(c) On existing highway-railroad grade crossings, the department will pay, from 
available funds, for renewing the crossing pavement to provide a satisfactory 
riding surface for highway traffic. Asphalt or asphaltic concrete crossings are 
generally not acceptable. As a minimum standard, full depth timber pavement 
extending to the ends of railroad ties for the full crown width of the highway 
will be used. Other more durable materials will be used if mutually agreed to by 
the railroad company and the department.
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 August 3, 1998.
TRD-9812175
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Effective date: August 23, 1998
Proposal publication date: May 22, 1998
For further information, please call: (512) 463-8630

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") adopts new sec.50.1, sec.sec.50.3-
50.30, sec.50.33, sec.50.44, sec.50.45, sec.sec.50.50-50.54, sec.sec.50.60-
50.62, concerning governance of the Authority's management and its day-to-day 
operations, without changes to the proposed text as published in the June 5, 
1998 issue of the Texas Register (23 TexReg 5949). 
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 adopts new sec.50.1, sec.sec.50.3-
50.30, sec.50.33, sec.50.44, sec.50.45, sec.sec.50.50-50.54, sec.sec.50.60-
50.62, 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 
expense 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, 361.032(g).
Section 50.24 describes the duties of the office 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 provide 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. 
No oral or written comments were received on the proposed new sections.

SUBCHAPTER A.General Provisions
43 TAC sec.50.1
The new section is 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 under Transportation Code, sec.361.031, 
sec.361.032, sec.361.033, sec.361.035, sec.361.036, sec.361.0485, sec.361.051, 
and sec.361.052, all of which impact or govern issues related to the regulation 
of the affairs of the Authority and the conduct of its business.
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 August 3, 1998.
TRD-9812186
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 936-0903

SUBCHAPTER B.Governance of the Authority
43 TAC sec.sec.50.3-50.30
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 under Transportation Code, sec.361.031, 
sec.361.032, sec.361.033, sec.361.035, sec.361.036, sec.361.0485, sec.361.051, 
and sec.361.052, all of which impact or govern issues related to the regulation 
of the affairs of the Authority and the conduct of its business.
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 August 3, 1998.
TRD-9812187
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 936-0903

SUBCHAPTER C.Public Meetings and Public Access
43 TAC sec.50.33
The new section is 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 under Transportation Code, sec.361.031, 
sec.361.032, sec.361.033, sec.361.035, sec.361.036, sec.361.0485, sec.361.051, 
and sec.361.052, all of which impact or govern issues related to the regulation 
of the affairs of the Authority and the conduct of its business. 
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 August 3, 1998.
TRD-9812188
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 936-0903

SUBCHAPTER D.Employment Practices
43 TAC sec.50.44, sec.50.45
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 under Transportation Code, sec.361.031, 
sec.361.032, sec.361.033, sec.361.035, sec.361.036, sec.361.0485, sec.361.051, 
and sec.361.052, all of which impact or govern issues related to the regulation 
of the affairs of the Authority and the conduct of its business. 
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 August 3, 1998.
TRD-9812189
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 936-0903

SUBCHAPTER E.Indemnification
43 TAC sec.sec.50.50-50.54
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 under Transportation Code, sec.361.031, 
sec.361.032, sec.361.033, sec.361.035, sec.361.036, sec.361.0485, sec.361.051, 
and sec.361.052, all of which impact or govern issues related to the regulation 
of the affairs of the Authority and the conduct of its business.
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 August 3, 1998.
TRD-9812190
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 936-0903

SUBCHAPTER F.Public Records, Compliant Procedures and Debt Collection
43 TAC sec.sec.50.60-50.62
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 under Transportation Code, sec.361.031, 
sec.361.032, sec.361.033, sec.361.035, sec.361.036, sec.361.0485, sec.361.051, 
and sec.361.052, all of which impact or govern issues related to the regulation 
of the affairs of the Authority and the conduct of its business. 
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 August 3, 1998.
TRD-9812191
C. Brian Cassidy
General Counsel
Texas Turnpike Authority Division
Effective date: August 23, 1998
Proposal publication date: June 5, 1998
For further information, please call: (512) 936-0903

PART III. Automobile Theft Prevention Authority
CHAPTER 57. Automobile Theft Prevention Authority
43 TAC sec.sec.57.53-57.56
The Automobile Theft Prevention Authority (ATPA) adopts new sec.sec.57.53-57.56 
relating to its three advisory committees, Border Solutions, Grantee, and 
Insurance Fraud, and general requirements for all advisory committees. New 
sec.sec.57.53, 57.55-57.56 are adopted without changes to the proposed text as 
published in the April 10, 1998, issue of the Texas Register (23 TexReg 3671) 
and will not be republished. New sec.57.54 is adopted with minor changes in 
subsection (c) and will be republished. The third sentence in subsection (c) is 
revised to read that the work of the eighth member of the committee "includes" 
public awareness "relating to" motor vehicle theft; the published version stated 
the work "is" public awareness "of" motor vehicle theft. The new rules implement 
sec.2110.005 and sec.2110.008 of the Government Code (Senate Bill 383, 73rd 
Legislature 1993) which require state agency advisory committees to be 
established by rule and to conform to specific requirements set forth in these 
statutes. The adopted rules govern the current Border Solutions, Grantee, and 
Insurance Fraud Advisory Committees, which the ATPA initially established 
without formal rulemaking, in 1992, 1995, and 1996, respectively. Section 57.53 
establishes the Border Solutions Advisory Committee; sec.57.54 establishes the 
Grantee Advisory Committee; and sec.57.55 establishes the Insurance Fraud 
Advisory Committee. Each section also sets forth the purposes, duties, the 
composition, and membership of each advisory committee. Section 57.56 sets out 
the mechanisms by which the advisory committees meet, perform their work, and 
report to the ATPA, as well as the manner in which the committees are evaluated, 
the committees' costs and benefits are reported to the legislative budget board, 
and the duration of the committees.
No comments were received concerning the adoption of these rules. 
The new sections are adopted under Texas Civil Statutes, Article 4413(37), 
sec.6(a) which authorizes the Automobile Theft Prevention Authority to adopt 
rules to implement its powers and duties; and sec.2110.005 and sec.2110.008 of 
the Government Code which require state agency advisory committees be 
established by rule and to conform to specific requirements set forth in these 
statutes. 
The following are the statutes, articles, or codes affected by the adopted 
rules. 
Article 4413(37), sec.6(a) 

sec.57.54. Grantee Advisory Committee.
(a) The grantee advisory committee is established. 
(b) Purpose. The purpose of the grantee advisory committee is to give the 
authority the benefit of the members' collective expertise and experience to 
assist the authority in promoting the reduction of motor vehicle theft in Texas 
and in developing grant projects for that purpose. The committee will serve as 
liaison between the authority and grantees on grant project matters. The 
committee will convey program information to grantees and solicit input from 
grantees on issues and concerns affecting the authority's grant program. The 
committee will consider issues as they arise and convey these issues and related 
recommendations to the authority for its consideration.
(c) Composition and appointment of members. The grantee advisory committee shall 
consist of eight persons, seven of whom will be nominated by the members of the 
authority. Each authority member may nominate one person to serve on the 
committee. A member must represent an entity which is a current grantee of the 
authority. The chair of the authority shall appoint the eighth member whose work 
with a current grantee .includes public awareness relating to motor vehicle 
theft. Committee members serve a one-year term, beginning January 1 of each 
year. The authority shall appoint new members for the next year, no later than 
the December meeting of each year. If a committee member resigns or otherwise 
vacates his or her position prior to the end of a term, the authority shall 
appoint a replacement, as recommended by the appropriate authority member, to 
serve the remainder of the unexpired term. 
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 July 30, 1998.
TRD-9812039
Agustin De La Rosa
Director
Automobile Theft Prevention Authority
Effective date: August 19, 1998
Proposal publication date: April 10, 1998
For further information, please call: (512) 416-4606