Part II.
Public Utility Commission of Texas
Chapter 23.
Substantive Rules
General Rules
16 TAC §§23.1, 23.2, 23.4
(Editor's note: The text of the following sections proposed
for repeal will not be published. The sections may be examined in the offices
of the Public Utility Commission of Texas or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Public Utility Commission of Texas (PUC) proposes the
repeal of §23.1, relating to Purpose and Scope of Rules; §23.2,
relating to Severability Clause; and §23.4, relating to Statement of
Nondiscrimination. Project Number 17709 has been assigned to the proposed
repeal of §§23.1, 23.2, and §23.4. The Appropriation Act of
1997, House Bill 1, Article IX, Section 167 (Section 167) requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedures
Act). Such reviews shall include, at a minimum, an assessment by the agency
as to whether the reason for adopting or readopting the rule continues to
exist. The PUC held three workshops to conduct a preliminary review of its
rules. As a result of these workshops, the PUC is reorganizing its current
substantive rules located in 16 Texas Administrative Code (TAC) Chapter 23
to (1) satisfy the requirements of Section 167; (2) repeal rules no longer
needed; (3) update existing rules to reflect changes in the industries regulated
by the commission; (4) do clean-up amendments made necessary by changes in
law and commission organizational structure and practices; (5) reorganize
rules into new chapters to facilitate future amendments and provide room
for expansion; and (6) reorganize the rules according to the industry to
which they apply. As a result of this reorganization, §§23.1, 23.2,
and 23.4 will be duplicative of proposed new sections in Chapter 25 of this
title (relating to Substantive Rules Applicable to Electric Service Providers)
and Chapter 26 of this title (relating to Substantive Rules Applicable to
Telecommunications Service Providers).
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined
that for each year of the first five-year period these repeals are in effect
there will be no fiscal implications for state or local government as a result
of enforcing or administering the repeals.
Ms. Mueller also has determined that for each year of the first five years
the repeals are in effect, the public benefit anticipated as a result of
the repeals will be the elimination of unnecessary rules. There will be no
effect on small businesses as result of repealing these sections. There is
no anticipated economic cost to persons as a result of repealing these sections.
Ms. Mueller also has determined that for each year of the first five years
the repeals are in effect there will be no impact on employment in the geographical
area affected by the repeal of these sections.
Comments on the proposed repeals (16 copies) may be submitted to the Filing
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O.
Box 13326, Austin, Texas 78711- 3326, within 30 days after publication. All
comments should refer to Project Number 17709.
These repeals are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998) (PURA), which
provides the Public Utility Commission with the authority to make and enforce
rules reasonably required in the exercise of its powers and jurisdiction.
Cross Index to Statutes: Public Utility Regulatory Act §14.002.
§23.1. Purpose and Scope of Rules.
§23.2. Severability Clause.
§23.4. Statement of Nondiscrimination.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
January 16, 1998.
TRD-9800819
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 936-7308
16 TAC §23.98
The Public Utility Commission of Texas (PUC) proposes an
amendment to §23.98, relating to Abbreviated Dialing Codes. The proposed
amendment will reserve 711 for Telecommunications Relay Services and allow
telecommunications providers to provide 311 non-emergency governmental services
pursuant to the First Report and Order in 12 FCC Rcd. 5572, CC Docket Number
92-105, FCC 97-51,
In the Matter of the Use of N11
Codes and Other Abbreviated Dialing Arrangements
. Project Number 17264
has been assigned to this proposed amendment.
Ms. Janis Ervin, senior utilities analyst, Office of Regulatory Affairs-Telecommunications
Division, has determined that for each year of the first five-year period
the proposed section is in effect there will be no fiscal implications for
state or local government as a result of enforcing or administering the section.
Mr. Eric White, assistant general counsel, Office of Regulatory Affairs-Legal
Division has determined that for each year of the first five years the proposed
section is in effect the public benefit anticipated as a result of enforcing
the section will be to alleviate the burden on the 911 system due to non-emergency
calls. The effect will be to allow the 911 system to focus more of its resources
on emergency calls. There will be no effect on small businesses as result
of enforcing this section. There is no anticipated economic cost to persons
who are required to comply with the section as proposed.
Mr. White has also determined that for each year of the first five years
the proposed section is in effect there will be no impact on employment in
the geographical area affected by implementing the requirements of the section.
Comments on the proposed amendment (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
All comments should refer to Project Number 17264. A public hearing on this
rulemaking will be held at the offices of the PUC at 10:00 a.m. on March
2, 1998.
This amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated, §14.002 (PURA), which provides
the Public Utility Commission with the authority to make and enforce rules
reasonably required in the exercise of its powers and jurisdiction, and specifically
§52.001, which authorizes the Public Utility Commission to formulate
and apply rules to protect the public interest due to federal administrative
actions.
Cross Index to Statutes: Public Utility Regulatory Act, §14.002 and
§52.001.
§23.98. Abbreviated Dialing Codes.
(a)
The following abbreviated dialing codes may be used in
Texas:
(1)
311 - Non-Emergency Governmental
Service;
(2)
[
(A)
Directory Assistance;
and
(B)
Directory Assistance Call Completion;
(3)
[
(4)
711 —Telecommunications
Relay Service;
(5)
[
(6)
[
(b)
The following N11 dialing codes are not assigned for use
in Texas:
(1)
211;
and
[
311;]
(2)
[
[
711].
(c)-(d)
(No change.)
(e)
The following limitations apply to a CTU's use of N11
dialing codes for internal business and testing purposes:
(1)
use may not interfere with the assignment of such numbers
by the FCC and the
North American Numbering Plan (NANP)
[
(2)
(No change.)
(f)
311 Service.
(1)
Scope and Purpose. This subsection applies
to the assignment and provision of 311 service. Through this subsection,
the commission strives to strengthen the 911 system by potentially alleviating
congestion on the 911 system through the establishment of a framework for
governmental entities to implement a 311 system for non-emergency police
and other governmental services.
(2)
Definitions. The following words and terms,
when used in this subsection, shall have the following meanings, unless the
context clearly indicates otherwise.
(A)
"Certificated telecommunications utility" has
the meaning assigned by §23.3 of this title (relating to Definitions).
(B)
"Governmental entity" means any county, municipality,
emergency communication district, regional planning commission, appraisal
district, or any other subdivision or district that provides, participates
in the provision of, or has authority to provide fire- fighting, law enforcement,
ambulance, medical, 911, or other emergency service as defined in Texas Health
& Safety Code §771.001 (1997).
(C)
"911 system" means a system of processing emergency
911 calls, as defined in Texas Health & Safety Code §771.001
(1997)
.
(D)
"Selective routing" means the feature provided
with 311 service by which 311 calls are automatically routed to the 311 Answering
point for serving the place from which the call originates.
(E)
"311 Answering point" means a communications
facility that:
(i)
is operated during normal business hours;
(ii)
is assigned the responsibility to receive
311 calls and, as appropriate, to dispatch the non-emergency police or other
governmental services, or to transfer or relay 311 calls to the governmental
entity;
(iii)
is the first point of reception by a governmental
entity of a 311 call; and
(iv)
serves the jurisdictions in which it is located
or other participating jurisdictions.
(F)
"311 Service" means a telecommunications service
provided by a certificated telecommunications provider through which the
end user of a public telephone system has the ability to reach non- emergency
police and other governmental services by dialing the digits 3-1-1. 311 Service
must contain the selective routing feature or other equivalent state-of-the-art
feature.
(G)
"311 Service request" means the initial communication
between a governmental entity and a certificated telecommunications utility
for the provision of 311 Service.
(H)
"311 System" means a system of processing 311
calls.
(3)
A certificated telecommunications
utility must have a commission- approved application to provide 311 Service.
(4)
Requirements of application by certificated
telecommunications utility.
(A)
Applications, tariffs, and notices filed under
this subsection shall be written in plain language, shall contain sufficient
detail to give customers, governmental entities, and other affected parties
adequate notice of the filing, and shall conform to the requirements of §23.26
of this title (relating to New & Experimental Services) or §23.27
of this title (relating to Rate-Setting Flexibility for Services Subject
to Significant Competitive Challenges), whichever is applicable.
(B)
A copy of the text of the proposed notice to
notify the public of the request for 311 Service and the filing of an application
for regulatory approval of the certificated telecommunications utility's
provision of 311 service.
(C)
No application for 311 Service allowing the
governmental entity to charge its citizens a fee for using the 311 system
shall be approved.
(5)
Notice. The presiding officer shall
determine the appropriate level of notice to be provided and may require
additional notice to the public.
(A)
The certificated telecommunications utility
shall file with the commission a copy of the text of the proposed notice
to notify the public of the request for 311 Service and the filing of an
application for regulatory approval of the certificated telecommunications
utility's provision of 311 service. This copy of the proposed notice shall
be filed with the commission not later than 10 days after the certificated
telecommunications utility receives the 311 Service Request; and
(B)
The proposed notice shall include the identity
of the governmental entity, the geographic area to be affected if the new
311 Service is approved, and the following language: "Persons who wish to
comment on this application should notify the commission by (specified date,
30 days after notice is published in the
Texas Register).
Requests for further information should be mailed to the Public Utility Commission
of Texas, P.O. Box 13326, Austin, Texas 78711-3326, or you may call the Public
Utility Commission's Office of Customer Protection at (512) 936-7120. Hearing-
and speech-impaired individuals with text telephones (TTY) may contact the
commission at (512) 936-7136."
(6)
A certificated telecommunications
utility will provide 311 Service only to governmental entities.
(7)
A 311 Service request is the request that
starts the six-month deadline to "take any necessary steps to complete 311
calls" as required by the Federal Communications Commission's Order
(8)
311 calls shall not be completed over
the 9-1-1 network or use the 9-1- 1 database.
(9)
The 311 network shall not be used for
commercial advertisements.
(10)
When a certificated telecommunications
utility uses Automatic Number Identification (ANI) Service, Automatic Location
Identification (ALI) Service or other equivalent information-gathering feature
for the provision of 311 Service, a corresponding seven-digit number without
that feature must be maintained allowing access to the same non-emergency
police and governmental services offered by the 311 Service.
(11)
The commission shall have the authority
to limit the use of 311 abbreviated dialing codes to applications that are
found to be in the public interest.
(12)
The commission shall have the authority
to decide which governmental entity shall provide 311 Service when there
are conflicting requests for concurrent 311 Service for the same geographic
area, to the extent that negotiations between or among the affected governmental
entities fail. The commission shall consider the following factors in determining
conflicting requests for 311 Service:
(A)
the nature of the service(s) to be provided
by the governmental entity; and
(B)
the potential magnitude of use of the requested
311 Service (i.e., the number of residents served by the governmental entity).
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of the Secretary of State on January
16, 1998.
TRD-9800722
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 936-7308
Subchapter A. General Provisions
16 TAC §§25.1, 25.2, 25.3, 25.4
The Public Utility Commission of Texas (PUC) proposes new
§25.1, relating to Purpose and Scope of Rules; §25.2, relating
to Cross-Reference Transition Provision; §25.3, relating to Severability
Clause; and §25.4, relating to Statement of Nondiscrimination. Project
Number 17709 has been assigned to these proposed new rules. The Appropriation
Act of 1997, HB 1, Article IX, Section 167 (Section 167) requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure
Act). Such reviews shall include, at a minimum, an assessment by the agency
as to whether the reason for adopting or readopting the rule continues to
exist. The PUC held three workshops to conduct a preliminary review of its
rules. As a result of these workshops, the PUC is reorganizing its current
substantive rules located in 16 Texas Administrative Code (TAC) Chapter 23
to (1) satisfy the requirements of Section 167; (2) repeal rules no longer
needed; (3) update existing rules to reflect changes in the industries regulated
by the commission; (4) do clean-up amendments made necessary by changes in
law and commission organizational structure and practices; (5) reorganize
rules into new chapters to facilitate future amendments and provide room
for expansion; and (6) reorganize the rules according to the industry to
which they apply. 16 TAC Chapter 25 has been established for all commission
substantive rules applicable to electric service providers. The duplicative
sections of Chapter 23 will be proposed for repeal as each new section is
proposed for publication in Chapter 25.
New rule §25.1 will replace corresponding §23.1 of this title
(relating to Purpose and Scope of Rules). The proposed language in §25.1
has been changed to reflect the commission's mission statement and primary
goals from its strategic plan.
Many of the commission's current rules cross-reference other rule sections.
Proposed new rule §25.2 is to clarify that during this transition phase,
if a rule section cross-references another section of the rules in Chapter
23 that has been repealed due to the transition to the new chapters, then
that cross-reference now refers to the corresponding section in the new chapter.
New rule §25.3 will replace corresponding §23.2 of this title
(relating to Severability Clause). The proposed language in §25.3 reflects
minor changes in sentence structure.
New rule §25.4 will replace corresponding §23.4 of this title
(relating to Statement of Nondiscrimination). The language in §25.4
has not been changed from the language in §23.4.
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined
that for each year of the first five-year period the proposed section is
in effect there will be no fiscal implications for state or local government
as a result of enforcing or administering the section.
Ms. Mueller also has determined that for each year of the first five years
the proposed section is in effect the public benefit anticipated as a result
of enforcing the sections will be clarification of the purpose, scope, mission
and policy of the commission and its rules. There will be no effect on small
businesses as result of enforcing this section. There is no anticipated economic
cost to persons who are required to comply with the sections as proposed.
Ms. Mueller also has determined that for each year of the first five years
the proposed section is in effect there will be no impact on employment in
the geographical area affected by implementing the requirements of the section.
Comments on the proposed new rules (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
The commission invites specific comments regarding whether the reason for
adopting the rules in Chapter 23 continues to exist in adopting its corresponding
section in the new chapter. All comments should refer to Project Number 17709.
These new rules are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (PURA), which provides the
Public Utility Commission with the authority to make and enforce rules reasonably
required in the exercise of its powers and jurisdiction.
Cross Index to Statutes: Public Utility Regulatory Act §14.002.
§25.1. Purpose and Scope of Rules.
(a)
Mission of the Public Utility Commission of Texas (PUC).
The mission of the PUC is to assure the availability of safe, reliable, high
quality services that meet the needs of all Texans as just and reasonable
rates. To accomplish this mission, the PUC shall regulate electric and telecommunications
utilities as required while facilitating competition, operation of the free
market, and customer choice.
(b)
This chapter is intended to establish a comprehensive
system to accomplish the mission of the PUC and to establish the rights and
responsibilities of both the utility service providers and the consumer.
This chapter shall be given a fair and impartial construction to obtain these
objectives and shall be applied uniformly regardless of race, nationality,
color, religion, sex, or marital status.
§25.2. Cross-Reference Transition Provision.
A reference in a rule section or part of a section of Chapter 22 of
this title (relating to Procedural Rules); Chapter 23 of this title (relating
to Substantive Rules); Chapter 24 of this title (relating to Policy Statements);
Chapter 25 of this title (relating to Substantive Rules Applicable to Electric
Service Providers); or Chapter 26 of this title (relating to Substantive
Rules Applicable to Telecommunications Service Providers) to another section
or part of a section of Chapter 23 that was repealed after January 1, 1998,
refers to the corresponding section in Chapter 25 or Chapter 26 that replaced
the Chapter 23 section.
§25.3. Severability Clause.
The adoption of this chapter will in no way preclude the Public Utility
Commission of Texas from altering or amending any sections of this chapter
in whole or in part, or from requiring any other or additional service, equipment,
facility, or standard, either upon complaint or upon its own motion or upon
application of any utility. Furthermore, this chapter will not relieve in
any way a utility or customer from any of its duties under the laws of this
state or the United States. If any provision of this chapter is held invalid,
such invalidity shall not affect other provisions or applications of this
chapter which can be given effect without the invalid provision or application,
and to this end, the provisions of this chapter are declared to be severable.
This chapter shall not be construed so as to enlarge, diminish, modify, or
alter the jurisdiction, powers, or authority of the commission or the substantive
rights of any person. The commission may make exceptions to this chapter
for good cause.
§25.4. Statement of Nondiscrimination.
No utility shall discriminate on the basis of race, nationality, color,
religion, sex, or marital status.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
January 16, 1998.
TRD-9800821
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 936-7308
Subchapter A. General Provisions
16 TAC §§26.1, 26.2, 26.3, 26.4
The Public Utility Commission of Texas (PUC) proposes new
§26.1, relating to Purpose and Scope of Rules; §26.2, relating
to Cross-Reference Transition Provision; §26.3, relating to Severability
Clause; and §26.4, relating to Statement of Nondiscrimination. Project
Number 17709 has been assigned to these proposed new rules. The Appropriation
Act of 1997, HB 1, Article IX, Section 167 (Section 167) requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure
Act). Such reviews shall include, at a minimum, an assessment by the agency
as to whether the reason for adopting or readopting the rule continues to
exist. The PUC held three workshops to conduct a preliminary review of its
rules. As a result of these workshops, the PUC is reorganizing its current
substantive rules located in 16 Texas Administrative Code (TAC) Chapter 23
to (1) satisfy the requirements of Section 167; (2) repeal rules no longer
needed; (3) update existing rules to reflect changes in the industries regulated
by the commission; (4) do clean-up amendments made necessary by changes in
law and commission organizational structure and practices; (5) reorganize
rules into new chapters to facilitate future amendments and provide room
for expansion; and (6) reorganize the rules according to the industry to
which they apply. 16 TAC Chapter 26 has been established for all commission
substantive rules applicable to telecommunications service providers. The
duplicative sections of Chapter 23 will be proposed for repeal as each new
section is proposed for publication in Chapter 26.
New rule §26.1 will replace corresponding §23.1 of this title
(relating to Purpose and Scope of Rules). The proposed language in §26.1
has been changed to reflect the commission's mission statement and primary
goals from its strategic plan.
Many of the commission's current rules cross-reference other rule sections.
Proposed new rule §26.2 is to clarify that during this transition phase,
if a rule section cross-references another section of the rules in Chapter
23 that has been repealed due to the transition to the new chapters, then
that cross-reference now refers to the corresponding section in the new chapter.
New rule §26.3 will replace corresponding §23.2 of this title
(relating to Severability Clause). The proposed language in §26.3 reflects
minor changes in sentence structure.
New rule §26.4 will replace corresponding §23.4 of this title
(relating to Statement of Nondiscrimination). The language in §26.4
has not been changed from the language in §23.4.
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined
that for each year of the first five-year period the proposed section is
in effect there will be no fiscal implications for state or local government
as a result of enforcing or administering the section.
Ms. Mueller also has determined that for each year of the first five years
the proposed section is in effect the public benefit anticipated as a result
of enforcing the sections will be clarification of the purpose, scope, mission
and policy of the commission and its rules. There will be no effect on small
businesses as result of enforcing this section. There is no anticipated economic
cost to persons who are required to comply with the sections as proposed.
Ms. Mueller also has determined that for each year of the first five years
the proposed section is in effect there will be no impact on employment in
the geographical area affected by implementing the requirements of the section.
Comments on the proposed new rules (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
The commission invites specific comments regarding whether the reason for
adopting the rules in Chapter 23 continues to exist in adopting its corresponding
section in the new chapter. All comments should refer to Project Number 17709.
These new rules are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (PURA), which provides the
Public Utility Commission with the authority to make and enforce rules reasonably
required in the exercise of its powers and jurisdiction.
Cross Index to Statutes: Public Utility Regulatory Act §14.002.
§26.1. Purpose and Scope of Rules.
(a)
Mission of the Public Utility Commission of Texas (PUC).
The mission of the PUC is to assure the availability of safe, reliable, high
quality services that meet the needs of all Texans as just and reasonable
rates. To accomplish this mission, the PUC shall regulate electric and telecommunications
utilities as required while facilitating competition, operation of the free
market, and customer choice.
(b)
This chapter is intended to establish a comprehensive
system to accomplish the mission of the PUC and to establish the rights and
responsibilities of both the utility service providers and the consumer.
This chapter shall be given a fair and impartial construction to obtain these
objectives and shall be applied uniformly regardless of race, nationality,
color, religion, sex, or marital status.
§26.2.Cross-Reference Transition Provision.
A reference in a rule section or part of a section of Chapter 22 of
this title (relating to Procedural Rules); Chapter 23 of this title (relating
to Substantive Rules); Chapter 24 of this title (relating to Policy Statements);
Chapter 25 of this title (relating to Substantive Rules Applicable to Electric
Service Providers); or Chapter 26 of this title (relating to Substantive
Rules Applicable to Telecommunications Service Providers) to another section
or part of a section of Chapter 23 that was repealed after January 1, 1998,
refers to the corresponding section in Chapter 25 or Chapter 26 that replaced
the Chapter 23 section.
§26.3. Severability Clause.
The adoption of this chapter will in no way preclude the Public Utility
Commission of Texas from altering or amending any sections of this chapter
in whole or in part, or from requiring any other or additional service, equipment,
facility, or standard, either upon complaint or upon its own motion or upon
application of any utility. Furthermore, this chapter will not relieve in
any way a utility or customer from any of its duties under the laws of this
state or the United States. If any provision of this chapter is held invalid,
such invalidity shall not affect other provisions or applications of this
chapter which can be given effect without the invalid provision or application,
and to this end, the provisions of this chapter are declared to be severable.
This chapter shall not be construed so as to enlarge, diminish, modify, or
alter the jurisdiction, powers, or authority of the commission or the substantive
rights of any person. The commission may make exceptions to this chapter
for good cause.
§26.4. Statement of Nondiscrimination.
No utility shall discriminate on the basis of race, nationality, color,
religion, sex, or marital status.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
January 16, 1998.
TRD-9800822
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 936-7308
Chapter 105.
Advertising Rules
16 TAC §105.25, §105.26
The Texas Motor Vehicle Board proposes an amendment to §105.25,
concerning sales payment disclosures, and simultaneous repeal and proposal
of new §105.26, concerning lease payment disclosures.
The proposed changes to §105.25 amend subsection (5) to clarify the
required disclosures for the terms of repayment and the annual percentage
rate, with regard to advertising closed-end credit transactions.
New §105.26 conforms to revised Federal Reserve Board Regulation M
(12 CFR Part 213) which implements the Consumer Leasing Act (15 U.S.C. 1667-1667e).
The revised Regulation M became effective April 1, 1997 with a mandatory
compliance date of January 1, 1998. The proposed section establishes new
disclosure requirements for lease contracts, and revises and streamlines
lease advertising rules.
Brett Bray, Director, Motor Vehicle Division has determined that for the
first five-year period the amendments and new section are in effect there
will be no fiscal implications for state or local government as a result
of enforcing or administering the amendments.
Mr. Bray also has determined that for the first five-year period the amendments
and new section are in effect the public benefit anticipated as a result
of the proposed amendment to §105.25 will be to better educate the motor
vehicle buying public and to more readily allow consumers to compare financing
terms. In addition, Mr. Bray has determined that the public benefit anticipated
as a result of new §105.26 will be to help consumers shop and compare
lease terms and conform to federal law governing lease payment disclosures.
There will be no effect on small businesses and no anticipated additional
economic cost to persons who are required to comply with the amendments as
proposed.
Comments on the proposal may be submitted to Brett Bray, Director, Motor
Vehicle Division, Texas Department of Transportation, P. O. Box 2293, Austin,
Texas 78768, (512) 416-4800. The Motor Vehicle Board will consider adoption
of the proposed amendments and new section at its meeting on March 5, 1998.
Comments received by February 15, 1998 will be forwarded to the Board two
weeks prior to hearing. Comments received by March 2, 1998 will be forwarded
to the Board the next day. A public hearing on the proposed rules will be
held in conjunction with the Board's public meeting on March 5, 1998.
The amendments are proposed under the Texas Motor Vehicle Commission
Code, §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.
Motor Vehicle Commission Code, §5.01 is affected by the proposed amendment.
§105.25. Sales Payment Disclosures.
[
(1)-(4)
(No change.)
(5)
the amount of any finance charge must include the
following:
(A)
(No change.)
(B)
the terms of repayment (the number of months to make repayment
and the amount per month)
including the amount and due date of any balloon
payment;
[
(C)
the annual percentage rate or APR
; and
(D)
the amount of annual percentage
rate, if increased, after consummation of the credit transaction.
§105.26. Payment Disclosure - Lease.
(a)
An advertisement that promotes a consumer lease and contains
any of the following messages, statements, or terms:
(1)
the amount of any payment; or
(2)
a statement of any capitalized cost reduction or
other payment required prior to or by delivery, if delivery occurs after
consummation, must clearly and conspicuously include the following:
(A)
that the transaction advertised is a lease;
(B)
the total amount due prior to or at consummation or by
delivery, if delivery occurs after consummation;
(C)
the number, amounts, and due dates or periods of scheduled
payments under the lease;
(D)
a statement of whether or not a security deposit is required;
and
(E)
a statement that an extra charge may be imposed at the
end of the lease term where the lessee's liability, if any, is based on the
difference between the residual value of the leased property and its realized
value at the end of the lease term.
(b)
Except for a periodic payment, a reference to a charge
as described in subsection (a)(2)(B), i.e., to components of the total due
at lease signing or delivery, cannot be more prominently advertised than
the disclosure of the total amount due at lease signing or delivery.
(c)
If a percentage rate is advertised, that rate shall not
be more prominent than any of the following disclosures stated in the advertisement,
with the exception of paragraph (19) of this subsection, the notice required
to accompany the rate.
(1)
Description of payments.
(2)
Amount due at lease signing or delivery.
(3)
Payment schedule and total amount of periodic payments.
(4)
Other itemized charges that are not included in the
periodic payment. These charges include that amount of any liability that
lease imposes upon the lessee at the end of the lease term.
(5)
Total of payments.
(6)
Payment calculation:
(A)
Gross capitalized cost.
(B)
Capitalized cost reduction.
(C)
Adjusted capitalized cost.
(D)
Residual value.
(E)
Depreciation and any amortized amounts.
(F)
Rent charge.
(G)
Total of base periodic payments.
(H)
Lease term.
(I)
Base periodic payment.
(J)
Itemization of other charges that are a part of the periodic
payment.
(K)
Total periodic payment.
(7)
Early termination conditions and disclosure
of charges.
(8)
Maintenance responsibilities.
(9)
Purchase option.
(10)
Statement referencing nonsegregated disclosures.
(11)
Liability between residual and realized values.
(12)
Right of appraisal.
(13)
Liability at the end of the lease term based on
residual value.
(14)
Fees and taxes.
(15)
Insurance.
(16)
Warranties or guarantees.
(17)
Penalties and other charges for delinquency.
(18)
Security interest.
(19)
Limitations on rate information.
(d)
If a lessor provides a percentage rate in an advertisement,
a notice stating that "this percentage may not measure the overall cost of
financing this lease" shall accompany the rate disclosure. The lessor shall
not use the term "annual percentage rate," "annual lease rate," or any equivalent
term.
(e)
A multi-page advertisement that provides a table or schedule
of the required disclosures is considered a single advertisement if, for
lease terms that appear without all of the required disclosures, the advertisement
refers to the page or pages on which the table or schedule appears.
(f)
A merchandise tag stating any item listed in subsection
(a)(1) or (2) of this section, must comply with the disclosures in subsection
(a)(2)(A)-(E) of this section by referring to a sign or display prominently
posted in the lessor's place of business that contains a table or schedule
of the required disclosures.
(g)
An advertisement made through television or radio stating
any item listed in subsection (a)(1) or (2), must state in the advertisement:
(1)
that the transaction advertised is a lease;
(2)
the total amount due prior to or at consummation
or by delivery, if delivery occurs after consummation;
(3)
the number, amounts, and due dates or periods of
scheduled payments under the lease; and
(4)
Either:
(A)
a toll-free telephone number along with a reference that
such number may be used by consumers to obtain the information in subsection
(a)(2)(A)-(E) of this section. The toll-free telephone number shall be available
for no fewer than ten days, beginning on the date of the broadcast and the
lessor shall provide the information in subsection (a)(2)(A)-(E) of this
section orally or in writing upon request; or,
(B)
direct the consumer to a written advertisement in a publication
of general circulation in the community served by the media station, including
the name and the date of the publication, with a statement that the required
disclosures in subsection (a)(2)(A)-(E) of this section are included in the
advertisement. The written advertisement shall be published beginning at
least three days before and ending at least 10 days after the broadcast.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of the Secretary of State on January
16, 1998.
TRD-9800726
Brett Bray
Director
Texas Motor Vehicle Board
Proposed date of adoption: March 5, 1998
For further information, please call: (512) 463-8630
16 TAC §105.26
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices
of the Texas Motor Vehicle Commission or in the Texas Register office, Room
245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Motor Vehicle Commission proposes the
repeal of §105.26, concerning lease payment disclosures.
Existing §105.26 is proposed to be repealed and by a separate simultaneous
submission, new §105.26 is proposed to be adopted to conform the rule
to revised Federal Reserve Board Regulation M (12 CFR Part 213) which implements
the Consumer Leasing Act.
Brett Bray, Director, Motor Vehicle Division, has determined that for the
first five-year period the repeal of the section is in effect there will
be no fiscal implications for state or local government as a result of the
repeal of the section.
Mr. Bray also has determined that for the first five-year period the repeal
is in effect the public benefit anticipated is the removal of an inconsistency
and a conflict with provisions of federal law governing lease payment disclosures.
There will be no effect on small businesses and no anticipated economic costs
to any person as a result of the repeal.
Comments on the proposal may be submitted to Brett Bray, Director, Motor
Vehicle Division, Texas Department of Transportation, P.O. Box 2293, Austin,
Texas 78768, (512) 416-4800.
The repeal is proposed under §3.06 of the Texas Motor Vehicle
Commission Code which provides the Commission with authority to adopt, amend
and repeal rules as may be necessary or convenient to effectuate the provision
of the act and to govern practice and procedure before the agency.
Motor Vehicle Commission Code, §5.01 is affected by the proposed amendment.
§105.26. Payment Disclosures-Lease.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State on January
16, 1998.
TRD-9800727
Brett Bray
Director
Texas Motor Vehicle Board
Proposed date of adoption: March 5, 1998
For further information, please call: (512) 463-8630
Chapter 303.
General Provisions
Subchapter A. Organization of the Commission
16 TAC §303.4
The Texas Racing Commission proposes an amendment to §303.4,
concerning Commission meetings. The Texas Racing Act was revised by sunset
legislation effective September 1, 1997, and in that legislation, the Commission
is required to adopt rules which provide the public with a reasonable opportunity
to appear before the Commission and to speak on any issue under the jurisdiction
of the Commission. In addition, the Commission is required to provide notice
to each racetrack of each Commission meeting at which rules will be considered.
This amendment implements those requirements.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five-year period the amendment is in effect
there will be no fiscal implications for local government as a result of
enforcing the proposal. Ms. Flowerday has also determined for the first five-year
period the amendment is in effect there will be fiscal implications for state
government as a result of enforcing the proposal. The Commission estimates
the annual cost of sending the agenda and summary of rule proposals to all
racetracks will be approximately $100.
Ms. Flowerday has also determined that for each of the first five years
the amendment is in effect the public benefit anticipated as a result of
enforcing the proposal will be that the Commission's rules are consistent
with Texas Civil Statutes, Article 179e, and that the public has ample notice
and opportunity to be involved in the Commission's policy making and rulemaking
procedures. There will be no fiscal implications for small businesses. There
is no anticipated economic cost to an individual required to comply with
the proposal. The proposal has no effect on the state's agricultural, horse
breeding, horse training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before March 10, 1998,
to Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
P.O. Box 12080, Austin, Texas 78711-2080.
The amendment is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §2.11,
which requires the Commission to adopt rules providing the public with an
opportunity to appear before the Commission and address the Commission; and
§3.02, which requires the Commission to post notice of a meeting involving
rulemaking at each racetrack.
The proposed amendment implements Texas Civil Statutes, Article 179e.
§303.4.Meetings.
(a)
Except as otherwise provided by state law, commission
[
(b)-(f)
(No change.)
(g)
Before each regular commission meeting,
the executive secretary shall distribute the agenda and a summary of each
rule scheduled for proposal at the meeting to each licensed racetrack, each
official breed registry, the officially recognized horsemen's organization,
and the Texas Veterinary Medical Association. An association shall post the
agenda and rules in a prominent place that will ensure access by interested
persons.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
January 12, 1998.
TRD-9800440
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699
Subchapter D. Suspension and Revocation of Licenses
16 TAC §305.244
The Texas Racing Commission proposes an amendment to §305.244,
concerning failure to disclose. The Texas Racing Act was revised by sunset
legislation effective September 1, 1997, and in that legislation, the Commission
is authorized to revoke, suspend, or deny a racetrack license if the applicant
has failed to fully disclose the true owners of all interests in the racetrack
facility.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five-year period the proposal is in effect
there will be no fiscal implications for state or local government as a result
of enforcing the proposal.
Ms. Flowerday has also determined that for each of the first five years
the proposal is in effect the public benefit anticipated as a result of enforcing
the proposal will be that the Commission's rules are consistent with the
applicable state law and that the state's licensed racetracks will be owned
and operated in accordance with the law. There will be no fiscal implications
for small businesses. There is no anticipated economic cost to an individual
required to comply with the proposal. The proposal has no effect on the state's
agricultural, horse breeding, horse training, greyhound breeding, or greyhound
training industries.
Comments on the proposal may be submitted on or before March 10, 1998,
to Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
P.O. Box 12080, Austin, Texas 78711-2080.
The amendment is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; and §6.06
which authorizes the Commission to adopt rules regarding racetrack license
applications.
The proposed amendment implements Texas Civil Statutes, Article 179e.
§305.244.Failure to Disclose.
The commission may suspend or revoke a license if the commission determines
that the licensee:
(1)
failed to provide information required in the license
application;
(2)
provided false information in the license application;
[
(3)
failed to disclose an ownership interest in a horse
or greyhound as required by a rule of the commission
; or
(4)
failed to fully disclose the true
owners of all interests, beneficial or otherwise, in a proposed racetrack
facility
.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
January 12, 1998.
TRD-9800439
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699
Subchapter D. Rulemaking
16 TAC §307.302
The Texas Racing Commission proposes an amendment to §307.302,
concerning the Commission's rulemaking procedure. The Texas Racing Act was
revised by sunset legislation effective September 1, 1997, and in that legislation,
the Commission is required to distribute a copy of each proposed rule to
each racetrack location. This amendment implements that requirement.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five-year period the amendment is in effect
there will be no fiscal implications for local government as a result of
enforcing the proposal. Ms. Flowerday has also determined for the first five-year
period the amendment is in effect there will be fiscal implications for state
government as a result of enforcing the proposal. The Commission estimates
the annual cost of sending the proposed rules to all racetrack locations
will be approximately $45.
Ms. Flowerday has also determined that for each of the first five years
the amendment is in effect the public benefit anticipated as a result of
enforcing the proposal will be that the Commission's rules are consistent
with applicable state law and that the racetracks and occupational licensees
will have notice of the Commission's rulemaking processes. There will be
no fiscal implications for small businesses. There is no anticipated economic
cost to an individual required to comply with the proposal.
Comments on the proposal may be submitted on or before March 10, 1998,
to Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
P.O. Box 12080, Austin, Texas 78711-2080.
The amendment is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act and which
requires the posting of proposed rules at each racetrack location.
The proposed amendment implements Texas Civil Statutes, Article 179e.
Rulemaking Procedure
[
(a)
The executive secretary or a commission member may
present to the commission a suggested new rule, amendment to an existing
rule, or repeal of a rule.
[
(b)
The commission staff shall provide a copy of
each
suggested new rule, amendment to an existing rule, or repeal of a rule
[
(c)
If the commission votes to propose a suggested
new rule, amendment to an existing rule, or repeal of a rule, the executive
secretary shall file the proposal for publication in the Texas Register in
accordance with the Administrative Procedure Act, Government Code, Chapter
2001. Concurrently with filing with the Texas Register, the executive secretary
shall distribute a copy of each proposal to each association. On receipt
of a proposal, an association shall promptly post the proposal in a prominent
place that will ensure access by interested persons.
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
January 12, 1998.
TRD-9800438
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699
Subchapter A. General Provisions
Facilities and Equipment
16 TAC §309.18
The Texas Racing Commission proposes an amendment to §309.18,
concerning first aid at pari-mutuel racetracks. The amendment clarifies the
requirements for first aid personnel and eliminates the requirement of having
first aid personnel on the grounds of a racetrack when no live racing or
exercising is occurring.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five-year period the amendment is in effect
there will be no fiscal implications for state or local government as a result
of enforcing the proposal.
Ms. Flowerday has also determined that for each of the first five years
the amendment is in effect the public benefit anticipated as a result of
enforcing the proposal will be that pari-mutuel racing will be safe for the
patrons and participants without being overly burdensome to the racetracks.
The Commission anticipates licensed racetracks will see cost savings from
the new rule because they will no longer be required by Commission rule to
provide first aid personnel when the track is open for simulcasting only.
The exact amount of the savings cannot be determined because the cost of
the first aid personnel varies by track and by geographic region within the
state. Further, each racetrack is free to determine when first aid personnel
are required on the grounds when simulcasting only. There is no anticipated
economic cost to an individual required to comply with the proposal. The
proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before March 10, 1998,
to Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
P.O. Box 12080, Austin, Texas 78711-2080.
The amendment is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; and §6.06,
which authorizes the Commission to adopt rules on all matters relating to
the operation of pari-mutuel racetracks.
The proposed amendment implements Texas Civil Statutes, Article 179e.
§309.18.First Aid.
(a)
During a
live
race performance,
a greyhound
racing
[
(1)
a first aid room equipped with at least two beds and other
appropriate equipment; and
(2)
the services of
a basic emergency medical technician
certified after September 1, 1996 or a
[
(b)
During a live race meet, a
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
January 12, 1998.
TRD-9800437
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699
Subchapter A. General Provisions
Telephone
(1)
] 411:
(2)
] 611 — Repair
Service;
(3)
] 811 — Business
Office;
and
(4)
] 911 — Emergency
service.
(2)
(3)
] 511[
;
]
(4)
NANP
]; and
Chapter 25.
Substantive Rules Applicable to Electric Service Providers
Chapter 26.
Substantive Rules Applicable to Telecommunications Service Providers
Part VI.
Texas Motor Vehicle Board
The commission is adopting the Federal Trade commission closed
end credit disclosure rules which presently read as follows
]. An advertisement
that contains any one of the following messages, statements, or terms:
and
]
Part VIII.
Texas Racing Commission
and section
] meetings are subject to the
Texas open meetings
law, Government Code, Chapter 551
[
Texas Open Meetings Act, Texas
Civil Statutes, Article 6252-17
].
Chapter 305.
Licenses for Pari-mutuel Racing
or
]
Chapter 307.
Practice and Procedure
Amendment, Deletions, and Additions of Rules
].
A proposed addition, amendment, or
repeal to the commission rules may be made by a commission member by filing
the proposal with the executive secretary.
]
a proposal made under this section
] to each commission member
before the [
next regular or special
] commission meeting
at which the rule will be considered
.
(c)
On approval of the proposal, the amendment,
deletion, or addition to the commission rules will be adopted in accordance
with the Administrative Procedure and Texas Register Act, Texas Civil Statutes,
Article 6252-13a.
]
Chapter 309.
Operation of Racetracks
an
] association shall provide:
at least one
] certified
paramedic.
A
] horse
racing association shall provide a properly equipped and staffed ambulance
for humans
and the services of a certified paramedic
at any time
that the racetrack is open for racing or exercising. At a Class 1 or 2 racetrack,
the primary ambulance must be a Mobile Intensive Care Unit (MICU) certified
by the Texas Department of Health. If the MICU ambulance is used to transport
an individual, the association may not conduct a race until the ambulance
is replaced by an ambulance approved by the commission. The ambulance must
be parked at the entrance to the racing strip when not being used to transport
an individual.
Chapter 323.
Disciplinary Action and Enforcement