TITLE 1.ADMINISTRATION

Part 4. OFFICE OF THE SECRETARY OF STATE

Chapter 102. HEALTH SPAS

Subchapter B. REGISTRATION PROCEDURES

1 TAC §102.17

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the Office of the Secretary of State, Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Secretary of State proposes the repeal of §102.17 concerning the procedure for the registration of certain health facilities. The purpose of the repeal is to conform to procedures specified in §702.201 and §702.202 of the Texas Occupations Code for establishing an exemption from the security requirements of Subchapter D of the Occupations Code.

Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section has determined that there will be no fiscal implications for state or local government or small business as a result of the repeal of §102.17.

Mr. Joyner also has determined the public benefit anticipated will be the clarification of the procedure for applying and qualifying for an exemption from the security requirements of Subchapter D of the Texas Occupations Code. There will be no effect on large businesses, small businesses or micro-businesses. There will be no additional economic cost to individuals. There is no anticipated impact on local employment.

Comments on the proposed repeal may be submitted to Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section, P.O. Box 12887, Austin, Texas 78711-2887.

The repeal is proposed under the Texas Government Code, §2001.004(1) and the Health Spa Act, Texas Occupations Code, §702.051 which provide the Secretary of State with the authority to prescribe and adopt rules. No other statutes, articles or codes are affected by this repeal.

§102.17.Procedure for the Registration of Certain Exercise Facilities.

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 August 1, 2001.

TRD-200104437

Geoffrey S. Connor

Assistant Secretary of State

Office of the Secretary of State

Earliest possible date of adoption: September 16, 2001

For further information, please call: (512) 475-0775


1 TAC §102.18

The Office of the Secretary of State proposes new rule §102.18 concerning the filing of an application for an exemption from the security requirements of Subchapter D of the Texas Occupations Code. This rule is proposed in order to clarify the procedure for applying for an exemption from the security requirements specified in §702.151 of the Texas Occupations Code.

Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section has determined that for the first five year period that the proposed amendment is in effect there will be no fiscal implications for state or local government or small business as a result of enforcing the amendment.

Mr. Joyner also has determined that for each year of the first five years that the amendment is in effect the public benefit anticipated as a result of enforcing the amendment will be the clarification of the procedure for applying and qualifying for an exemption from the security requirements of Subchapter D of the Texas Occupations Code. There will be no effect on large businesses, small businesses or micro-businesses. There will be no additional economic cost to individuals. There is no anticipated impact on local employment.

Comments on the proposed rule may be submitted to Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section, P.O. Box 12887, Austin, Texas 78711-2887.

The amendment is proposed under the Texas Government Code, §2001.004(1) and the Health Spa Act, Texas Occupations Code, §702.051 which provide the Secretary of State with the authority to prescribe and adopt rules. The amendment affects the Texas Occupations Code, §§702.201, 702.202 and 702.205.

§102.18.Application for Exemption from the Security Requirements.

(a) A registrant applying for an exemption from the security requirements of Subchapter D of the Texas Occupations Code must use the application form prescribed by the secretary of state.

(b) The application form may be obtained from the Statutory Documents Section of the Office of the Secretary of State, P.O. Box 12887, Austin, Texas 78711-2887, (512) 463-6906. It is also available on the Internet at http://www.sos.state.tx.us/statdoc/forms/3006.doc

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 August 1, 2001.

TRD-200104431

Geoffrey S. Connor

Assistant Secretary of State

Office of the Secretary of State

Earliest possible date of adoption: September 16, 2001

For further information, please call: (512) 475-0775


Subchapter D. SECURITY

1 TAC §102.35

The Office of the Secretary of State proposes an amendment to §102.35 concerning the adjudication of member's claims when a health spa has ceased operations. The purpose of the amendment is to conform §102.35 to amendments to Chapter 702 of the Occupations Code that were made by the 77th Texas Legislature in Senate Bill 1318.

Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section has determined that for the first five year period that the proposed amendments are in effect there will be no fiscal implications for state or local governments as a result of enforcing the amendment. Health spa registrants that close health spa facilities may see reduced costs in providing notice of the closing to members. There is no other effect on large businesses, small businesses or micro-businesses. There is no anticipated additional economic cost to individuals who are required to comply with the amendment as proposed. There is no anticipated impact on local employment.

Mr. Joyner also has determined that for each year of the first five years that the amendment is in effect the public benefit anticipated as a result of enforcing the amendment will be the establishment of a cost effective method of informing the members of a closed health spa of the procedure for filing a claim with the Office of the Secretary of State.

Comments on the proposed amendment may be submitted to Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section, P.O. Box 12887, Austin, Texas 78711-2887.

The amendment is proposed under the Texas Government Code, §2001.004(1) and the Health Spa Act, Texas Occupations Code, §702.051 which provide the Secretary of State with the authority to prescribe and adopt rules. The amendment affects the Texas Occupations Code, §§702.253, 702.254 and 702.452.

§102.35. Adjudication of Claims.

(a) Within 10 [ 20 ] days of receiving notice that a health spa which has posted a security with the secretary has ceased operations [ or is insolvent ], the secretary shall [ make a preliminary determination regarding whether any of the spa's members have suffered financial loss within the meaning of the Act and these rules. If the secretary determines that financial losses have in fact occurred, he shall within 20 days of making the determination ] notify the surety or obligor that:

(1) the health spa has ceased operations [ or is insolvent ];

(2) members of the health spa may have suffered financial losses within the meaning of the Act and these rules; and

(3) the secretary intends to:

[ (A) ] inform the registrant that the registrant must post a notice at the health spa location [ publish a display advertisement in a newspaper of general circulation in the county or nearest county in which the health spa is located ] notifying the public of the fact that the health spa is closed and that a health spa member has 90 days from the date the notice is first posted [ of the first notice ] to perfect a claim under the security posted . [ ; or ]

[(B) use any other reasonable method, to include regular mail, deemed by the secretary to provide sufficient notice to members of the health spa of the fact that the health spa is closed and that a member has 90 days from the date of the notice to perfect a claim under the security posted;]

[(4) the secretary intends to perfect a claim against the bond or other security for the reasonable expenses incurred in providing notice to the members. The maximum amount of such expenses shall not exceed $3,000.]

[(b) Unless the surety or obligor, as the case may be, timely contests the preliminary determination of the secretary pursuant to the Administrative Procedure and Texas Register Act (Texas Civil Statutes, Article 6252-13a (Vernon Supp. 1992)), the secretary shall proceed to publish the notice.]

[ (c) Within 45 days from the date the secretary first discovers that a health spa has closed, the secretary shall initiate the notice process.]

[(1) If it is decided to publish in a newspaper, the secretary shall publish a display advertisement in a newspaper of general circulation in the county or nearest county in which the health spa is located notifying the public of the fact that the health spa is closed and the member has 90 days from the date of the first notice to perfect a claim under the security posted pursuant to this Act, §10. The notice shall be published for two consecutive Saturdays and Sundays and shall inform those affected of the procedures for perfecting a claim against the security. The secretary shall have a claim against the security for reasonable expenses incurred in publishing the notice which shall not exceed $3,000.]

(b) The notice must be:

(1) at least 8 1/2 by 11 inches in size;

(2) posted in a place that is readily accessible to the general public during the former operating hours of the health spa; and

(3) posted continuously for at least 14 days.

(c) If, no later than 10 days from the date the secretary discovers a health spa is closed, the secretary determines that the registrant has not posted the required notice, the secretary will take action to post the notice.

(d) [ (2) ] Regardless of the method utilized for notice to the members, all claims received by the secretary after 90 days following the date of the first notice are barred and shall not be considered by the secretary. If the total of claims evidencing actual financial loss exceed the amount of the security, the secretary shall adjudicate the claims on a pro rata basis by dividing the amount of the security, after first deducting the actual costs for publication of the notice, by the total amount of the claims in order to ascertain a percentage to be applied to each claim.

(e) [ (d) ] In order to perfect a claim, a claimant must submit a copy of the contract that forms a basis of the claim together with documentation or a sworn affidavit indicating the total of payments made pursuant to the contract. In the event the claimant does not submit adequate documentation, the secretary shall promptly inform the claimant of this fact together with notice that adequate documentation must be received by the bar date in order for the claim to be considered.

(f) [ (e) ] The secretary shall timely present claims together with an administrative order supporting documentation ] for [ the approval of ] payment by the surety or obligor.

(g) [ (f) ] Actual financial loss shall mean and be limited to those sums which have been paid under a health spa contract to a registrant or a registrant's assignee and which at the time the health spa is closed are unearned. Actual financial losses shall be calculated by multiplying the gross monthly payment by the total of months or partial months remaining on a contract at the time of closing minus any payments not made. For the purposes of this section the following terms shall have the following meanings.

(1) Closed--The condition wherein the facilities of a health spa are no longer available to its members and equivalent facilities within 10 miles of the closed facility have not been made available to the members of the closed facilities; or where a registrant has sold a registered location and the security required in section of the Act has not been transferred to the new owner or the new owner has neither adopted nor honored the contracts of existing members.

(2) Gross monthly payment--The gross monthly payment shall be calculated by determining the total of payments, including down payments and initiation fees required by the contract, divided by the total number of months in the term of the contract.

(3) Calculation of dates--The date of closing and the date of the contract expiration shall be rounded to the nearest full month. The total months remaining on the contract shall be calculated by subtracting the date of closing from the expiration date of the contract. The result will be expressed in whole months.

(h) [ (g) ] If the members' claims do not exceed the amount of the security, the registrant shall arrange for the direct payment of the claims to the members.

(i) [ (h) ] The surety or obligor shall provide the secretary proof of payment of the members' claims.

(j) [ (i) ] In the event the total of claims exceed the amount of the security, the claims shall be paid on a pro rata basis by dividing the amount of the security[ , after first deducting the secretary's cost of publication of the notice, ] by the total amount of the claims. This percentage shall be applied to each claim.

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 August 1, 2001.

TRD-200104438

Geoffrey S. Connor

Assistant Secretary of State

Office of the Secretary of State

Earliest possible date of adoption: September 16, 2001

For further information, please call: (512) 475-0775


Part 5. GENERAL SERVICES COMMISSION

Chapter 125. SUPPORT SERVICES DIVISION--TRAVEL AND VEHICLE

Subchapter A. TRAVEL MANAGEMENT SERVICES

1 TAC §125.28, §125.29

The General Services Commission (GSC) proposes a new rule to Title 1, T.A.C., Chapter 125, Subchapter A, §125.28 concerning Travel Agency Transaction Fees, and proposed amendments to §125.29 concerning Texas Counties Use of Contract Airline Fares and/or Travel Agency Services.

It is the intent of the General Services Commission in the proposed new §125.28 to change the method for compensating travel agencies. The commission is proposing implementing transaction fees on ticketed airline reservations based on the following changes in the travel industry: the airlines initiated the reduction of commission payments at different percentage levels to travel agencies for ticketed reservations; the airlines paid a ten percent (10%) commission without caps to contract travel agencies for ticketed airline reservations; contract travel agencies were issuing paper tickets and providing ticket delivery services to the state without a charge; electronic ticketing is more efficient and cost effective for the airlines, passengers, and travel agencies; and the contract travel agency rebate program to the state was eliminated.

The proposed amendments to §125.29 are made in accordance with H.B. 3150, 77th Leg. (effective June 11, 2001) relating to authorizing county officers and employees to receive reduced travel agent fees for travel arrangements for official county business.

Mr. Frank H. Mays, Director of Support Services Division, has determined for the first five year period the new rule §125.28 is in effect, there will be fiscal implications for state government. state agencies that are participating in the travel agency contract portion of the Commission's Travel Program will incur a transaction fee based on a specific service level for each ticketed airline reservation. The annual cost to the state to implement transaction fees using the Full Travel Agency Service is estimated to be approximately $515,000.00. This approximate cost will remain the same for all five years. The actual cost cannot be determined at this time since each individual state agency will determine the level of service to be used by its travelers. If state agencies use any combination of the service levels, the fiscal impact will be a lower cost to the state.

The amendments to §125.29 will provide for counties participating in using the travel agency portion of the program to be charged a portion of the administration costs incurred by the state in extending this program to counties.

Assuming 30 counties also participate in the travel agency portion of the program with an approximate savings of $3,765 each, Texas counties could expect to save $112,950 per year based on the reduced average transaction fees paid by counties.

There will be positive fiscal implications for local governments as a result of the simultaneous adoption of proposed new rule §125.28 and the proposed amendments to §125.29.

Mr. Frank H. Mays, Director of Support Services Division, further determines that for each year of the first five-year period the new rule §125.28 is in effect, the public benefit anticipated as a result of enforcing these rules will be the possibility of additional travel agencies contracting with the State of Texas; The enforcement of these rules will allow the contract travel agencies to charge a transaction fee on a ticketed airline reservation, thereby compensating travel agencies for some of the cost of doing business with the state.

The public benefit anticipated as a result of enforcing proposed amendments to §125.29 for each year of the first five year period the rule is in effect is reduced travel agent fees for making travel arrangements for county officers and employees who travel on official county business.

There will be no effect on large, small or micro-businesses. There is no anticipated economic costs to persons who are required to comply with these rules and there is no impact on local employment.

Comments on the proposals may be submitted to Cynthia J. Hill, Acting General Counsel, General Services Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register.

The amendments are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003 and 2171.002, 2171.055 and H.B. 3150, 77th Leg. which provides the commission with the authority to promulgate rules necessary to implement the sections.

The following code is affected by these rules: Government Code, Title 10, Subtitle, Chapter 2171.

§125.28.Travel Agency Transaction Fees.

(a) A travel agency that has a Travel Agency Services Contract with the state to provide travel services to state agencies and/or counties may charge a base transaction fee for ticketing an airline reservation made for official state and/or county business.

(b) Travel agency base transaction fees will be based on the following:

(1) The maximum allowable base transaction fee is ten percent (10%) of the average state ticket price less the current commissions paid by the contract airlines to the travel agencies based on the level of service provided;

(2) the base transaction fee based on the level of service provided may be adjusted up or down when thirty (30%) of the state's flights by usage is affected by a commission change made by the contract airlines and shall be implemented through revisions in the Travel Agency Services Contract no more than thirty (30) business days after the effective date of the change.

(c) Applicable travel agency base transaction fees may only be charged at the amounts set forth in subsection (d) of this section for the level of service actually provided and defined as follows:

(1) Full Travel Agency Service - The issuance of an electronic or paper airline ticket from a reservation made over the telephone (toll-free service available) after speaking with a travel agent;

(2) Electronic Service - The issuance of an electronic or paper airline ticket from a reservation made through a FAX request and/or E-Mail correspondence sent to a contract travel agency;

(3) Web-Based On-Line Booking System - The issuance of an electronic or paper airline ticket from a reservation made through a Web-based on-line booking selection service (traveler does not obligate funds) and transmitted to the contract travel agency for processing;

(4) Full State Agency and/or County Service - The issuance of an electronic or paper airline ticket from reservations made totally by state agency and/or county staff with reservation/ticketing systems provided by the travel agency.

(d) The base transaction fees per level of service provided are as follows:

(1) Full Travel Agency Service fee will be the maximum allowed as defined in subsection (b) of this section;

(2) Electronic Service fee will be sixty-four percent (64%) of the fee paid by the state for Full Travel Agency Service;

(3) Web-Based On-Line Booking Service fee will be fifty-eight percent (58%) of the fee paid by the state for Full Travel Agency Service;

(4) Full State Agency and/or County Service fee will be forty percent (40%) of the fee paid by the state for Full Travel Agency Service.

(e) The transaction fee schedule will be included in the Travel Agency Services Contract using the following methodology:

(1) the average state ticket price will be derived on an annual basis from previous fiscal year data compiled, on availability, from consolidated usage reports received through the travel program's contract corporate travel charge card vendor and through data received from non-participating state agencies as defined in Section 125.21 of this title (relating to Reporting Requirements for State Agencies);

(2) the average state ticket price will be derived no later than November 1st of each year; and,

(3) the fee will be adjusted up or down based on the previous fiscal year's average ticket price;

(f) Contract travel agencies may charge an additional fee for providing the following services:

(1) a cancellation of a ticketed reservation; (partial or complete) when a refund is processed through the Airline Reporting Corporation (ARC) from work initiated by the contract travel agency;

(2) the delivery through a local courier service of a paper ticket that has been issued when an electronic ticket was available;

(3) the delivery through an overnight delivery service of a paper ticket that has been issued when an electronic ticket was available.

(g) The additional fees for providing additional services are as follows:

(1) the refund service fee for the cancellation of a ticketed reservation will be fifty percent (50%) of the fee for providing the type of service as set forth in subsection (d) of this section, provided that the contract travel agency performed the work necessary to initiate the cancellation;

(2) the fee for the delivery through a local courier service of a paper ticket may not exceed $15.00;

(3) the fee for the delivery through an overnight delivery service of a paper ticket may not exceed $20.00.

(h) A contract travel agency may charge the base transaction fee in the amount authorized for the level of service provided under the following circumstances:

(1) an airline reservation made by the state that has been ticketed if the fee is assessed at the point-of-sale issuance of an electronic or paper ticket;

(2) an additional and equal transaction fee may be charged if the airline reservation has been ticketed and a change is made in the air carrier or the departure or arrival city.

(i) A contract travel agency may not charge a base transaction fee under the following circumstances:

(1) the original invoice/itinerary forwarded to the state agency and/or county;

(2) an airline, rental car, or any other mode of transportation reservation or a lodging establishment reservation available through the travel agency;

(3) changes made to an airline, rental car, or any other mode of transportation reservation or a lodging establishment reservation available through the travel agency;

(4) changes made to an airline reservation that has not been ticketed;

(5) changes made to a ticketed reservation in the departure or return date or the departure or return time;

(6) any additional fee to supplement airline commission caps;

(7) any additional fee that could result from correcting a transaction-eligible ticket made in error by a travel agency; or

(8) any airline reservation ticketed through a Web-based self-booking tool that offers all types of airfares (including state contract airfares) in which the traveler obligates funds.

(j) A contract travel agency charging any transaction fee (base or additional) must do the following:

(1) charge the appropriate fee on the same date an airline reservation is ticketed, so that the point-of-sale transaction fee is billed through ARC as a Miscellaneous Charge Order (MCO) listing the associated airline ticket number;

(2) list the transaction fee service level and fee amount on the invoice/itinerary copies provided to the state agency and/or county;

(3) provide copies of MCOs and invoice/itinerary documents to state agencies and/or counties at least seven (7) calendar days after date of issue;

(4) charge the appropriate corporate travel charge card and provide itemization with supporting documentation for each additional fee authorized in subsection (f) of this section to each state agency and/ or county at least seven (7) calendar days after the billing date.

(k) Failure of a contract travel agency to charge the appropriate transaction fee at the time required in subsection (j) of this section shall result in waiver of the transaction fee and the transaction fee shall not be assessed against the state agency and/or county by any other means.

§125.29.Texas Counties Use of Contract Airline Fares and/or Travel Agency Services.

(a) A Texas county officer or employee, or persons who are in the custody of the state may use the following program services: [ program's contract airline fares for purposes of obtaining reduced airline fares. ]

(1) contract airline fares for purposes of obtaining reduced airline fares; and/or

(2) contract travel agency services for purposes of obtaining reduced travel agent fees.

(b) [ (1) ] A Texas county seeking to participate in the program to use the contract airline fares and/or the contract travel agency services shall execute and submit a Commissioner's Court Resolution that indicates compliance with all applicable travel program guidelines. The Commissioner's Court Resolution shall include, but is not limited to the following provisions:

(1) Agreement to pay an applicable participation [ (A) Participation ] fee;

(2) [ (B) ] Participation dates;

(3) [ (C) ] Use of contract airline fares;

(4) Use of contract travel agency services;

(5) [(D)] Consent to travel vendor reporting [ Reporting ] requirements; and

(6) [ (E) ] Contract termination.

(c) [ (2) ] The commission will charge Texas counties a participation fee to recover the commission's cost incurred in administering this program[ for counties ].

(d) [ (b) ] Texas counties participating in this program must comply with all rules and procedures as outlined in the commission's airline and/or travel agency contracts [ contract between the commission and the airlines ].

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 August 1, 2001.

TRD-200104439

Cynthia J. Hill

Acting General Counsel

General Services Commission

Earliest possible date of adoption: September 16, 2001

For further information, please call: (512) 463-3230


Part 12. COMMISSION ON STATE EMERGENCY COMMUNICATIONS

Chapter 251. REGIONAL PLANS - STANDARDS

1 TAC §251.5

The Commission on State Emergency Communications (CSEC) proposes an amendment to §251.5, concerning the use of 9-1-1 funds for equipment management and disposition by providing uniform guidelines and expectations.

The amendment proposes to revise sections of the rule to meet requirements set in the Appropriations Bill rider specific to CSEC as enacted by the 77th Texas Legislature. The references to capital recovery are being deleted since that component will no longer be allowed effective September 1, 2001. The title of the rule is also amended to remove reference to capital recovery.

Carey F. Spence, interim executive director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Spence also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the section will be accountability of public funds per the intent of the Legislature.

No historical data is available, however, there appears to be no direct impact on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. There is no anticipated local employment impact as a result of enforcing the section.

Comments on the amendment may be submitted in writing within 30 days after publication of the proposal in the Texas Register to Carey F. Spence, Interim Executive Director, Commission on State Emergency Communications, 333 Guadalupe Street, Suite 2-212, Austin, Texas 78701-3942.

The amendment is proposed under Health and Safety Code, Chapter 771, §§771.051, 771.055, 771.056, 771.071, 771.0711, 771.072, 771.075, 771.078 and 771.079 which authorize the Commission to adopt policies and procedures prescribing the distribution and use of 9-1-1 funds for providing 9-1-1 service.

No other statute, article, or code is affected by this amendment.

§251.5.Guidelines For 9-1-1 Equipment Management and Disposition [ and Capital Recovery ].

(a) As authorized by the Texas Health and Safety Code, Chapter 771, the [ Advisory ] Commission on State Emergency Communications (CSEC) [ (ACSEC) ] may impose 9-1-1 emergency service fees and equalization surcharges to support the planning, development, and provision of 9-1-1 service throughout the State of Texas. In accordance with Texas Health and Safety Code, Chapter 771, §771.055, such service implementation shall be consistent with regional plans developed by regional planning commissions. Each regional planning commission shall develop a plan for the establishment and operation of 9-1-1 service throughout the region that the regional planning commission serves. The service must meet the standards established by the CSEC [ Advisory Commission ].

(b) Definitions. The following words and terms, when used in this section shall have the following meanings, unless the context clearly indicates otherwise.

(1) 9-1-1 Equipment--Equipment acquired partially or in whole with 9-1-1 funds and designed to support and/or facilitate the delivery of an emergency 9-1-1 call to an appropriate Public Safety Answering Point (PSAP)s and as defined in §251.6 of this title (relating to Guidelines for Strategic Plans, Amendments, and Equalization Surcharge Allocation).

(2) 9-1-1 Funds--Funds assessed and disbursed in accordance with the Texas Health and Safety Code, Chapter 771.

(3) 9-1-1 Program Assets--9-1-1 and Addressing Capital Equipment purchased with 9-1-1 Funds.

(4) Addressing Equipment--Equipment acquired partially or in whole with 9-1-1 funds, and/or Addressing Pool funds, designed to support and/or facilitate the work associated with addressing completion and/or addressing maintenance activities, as defined in §251.3 of this title (relating to Guidelines for Addressing Funds).

(5) Addressing Activities--The work associated with the addressing of a county as defined in [ ACSEC ] §251.3 of this title (relating to Guidelines for Addressing Funds).

(6) Addressing Pool Funds--Funds directed to statewide addressing use including, but not limited to federal or state grants, contributions, donations, and telephone rate case settlement distributions; but, which exclude 9-1-1 Service Fee, either restricted or unrestricted in use.

[(7) Advisory Commission on State Emergency Communications. ACSEC.]

(7) [ (8) ] Applicable Law--Includes, but is not limited to, the State Administration of Emergency Communications Act, Texas Health and Safety Code, Chapter 771; Commission rules implementing the Act contained in Title 1, Part XII, Texas Administrative Code; the Uniform Grant management Standards, Title 1, §§5.151 - 5.165, Texas Administrative Code; the Preservation and Management of Local Government Records Act, Chapter 441, Subchapter J, Texas Government Code; and amendments to the cited statutes and rules. Also referred to as "applicable law and rules".

(8) [ (9) ] Capital Equipment--Items and components that comprise the technology used to answer and deliver 9-1-1 calls whose cost is over $5,000 [ $1,000 ] and have a useful life of at least one year.

(9) [ (10) ] Capital Replacement Cost--The cost of a piece of equipment that was originally identified to be amortized (i.e. the original cost for equipment.)

(10) [ (11) ] Controlled Equipment--Items and components that comprise the technology used to answer and deliver 9-1-1 calls whose cost is less than $5,000 [ $1,000 ] and have a useful life of at least one year. Used at the discretion of the RPC for items that tracking is deemed necessary.

(11) [ (12) ] Emergency Communications District--A public agency or group of public agencies acting jointly that provided 9-1-1 service before September 1, 1987, or that had voted or contracted before that date to provide that service; or a district created under Texas Health and Safety Code, Chapter 772, Subchapter B, C, D.

(12) [ (13) ] Intangible Assets--Includes items such as labor for PSAP room prep, electrical wiring costs, labor for the assembly of equipment, or any costs for the delay or transfer of equipment.

(13) [ (14) ] Interlocal Agreement--A contract cooperatively executed between local governments or other political subdivisions of the state to perform administrative functions or provide services, relating to 9-1-1 telecommunications.

(14) [ (15) ] Local Government--A county, municipality, public agency, or any other political subdivision that provides, participates in the provision of, or has authority to provide fire-fighting, law enforcement, ambulance, medical, 9-1-1, or other emergency services and/or addressing functions.

(15) [ (16) ] Maintenance--The preservation and upkeep of 9-1-1 equipment in order to insure that it continues to operate and perform at a level comparable to that exhibited at its initial acquisition.

(16) [ (17) ] Maintenance Plan--A plan that identifies a cost effective program for the maintenance of 9-1-1 equipment. For regional planning commissions this plan is part of a regional plan as described by the Texas Health and Safety Code, Chapter 771.

(17) [ (18) ] Contract for Services [ Memorandum of Understanding (MOU) ]--A contract executed between the Regional Planning Commission (RPC) and the CSEC [ ACSEC ] that establishes the responsibilities of each of the parties regarding the use of all 9-1-1 fees, equipment and data.

(18) [ (19) ] Non-Recurring Charge--The amount of cost identified as the entire lump sum, or one time, cost for 9-1-1 equipment replacement. The charge may be inclusive of an out right purchase of equipment or the primary cost for the implementation of leased equipment through a major telephone provider.

(19) [ (20) ] Public Safety Answering Point--A 24-hour communications facility established as an answering location for 9-1-1 calls originating within a given service area, as further defined in applicable law, Texas Health and Safety Code, Chapter 771. Also referred to as a "PSAP".

(20) [ (21) ] Recorders--Devices that capture and retain sound, including but not limited to the following:

(A) Voice Loggers--A device that records sound on a permanent source for later review.

(B) Instant Recall Recorders--A device that records and temporarily stores calls for immediate review.

(21) [ (22) ] Regional Planning Commission--A commission established under Local Government Code, Chapter 391, also referred to as a regional council of governments.

(22) [ (23) ] Strategic Plan--As part of a regional plan, a document identifying 9-1-1 equipment and related activity, by strategic plan component, required to support plan levels of 9-1-1 service within a defined area of the state. The strategic plan normally covers at least a three year planning period, and specifically projects 9-1-1 implementation costs and revenues associated with the above including equalization surcharge requirements.

(23) [ (24) ] Tangible Assets--Only those items that are tangible may be considered for capital [ recovery ] costs. Tangible assets items include, but is not limited to any capital equipment such as the ANI/ALI Controllers, answering position units, integrated workstations, addressing computers, GIS workstations, plotters, or any other technical piece of equipment.

(24) [ (25) ] Uniform Grant Management Standards (UGMS)--As developed by the Governor's Office of Budget and Planning, January 1998, under the authority of the Texas Government Code, Chapter 783.

(25) [ (26) ] Useful Life--The period of time that a piece of capital equipment can consistently and acceptably fulfill its' service or functional assignment.

(c) Management and Disposition of Equipment. Each RPC is responsible and accountable for all 9-1-1 and Addressing Equipment in its region, as approved in its strategic plan, and will contract with each of its participating Local Governments to ensure, at a minimum, that: all issues of equipment ownership, transfer of ownership, control and/or disposition of equipment acquired with 9-1-1 funds shall be identified within interlocal agreements; and, all contract provisions for equipment shall be consistent with Uniform Grant Management Standards (UGMS) as published by the Governor's Office of Budget and Planning, January 1998.

(1) Ownership of equipment acquired with 9-1-1 funds will vest in the RPC upon acquisition, or in the Local Government as agreed to within the applicable interlocal agreement.

(2) Transfer of ownership of equipment acquired with 9-1-1 funds shall be designated and approved in writing by the RPC, and agreed upon within the interlocal agreement.

(A) Before any such transfer of ownership, the RPC should evaluate the adequacy of controls of the prospective receiver to ensure that sufficient controls and security exist by which to protect and safeguard the equipment purchased with 9-1-1 funds;

(B) Transfer of Ownership documents shall be prepared by the RPC and signed by both parties upon transference in accordance with UGMS and the State Comptroller of Public Accounts;

(C) Upon transference of ownership, the receiving party shall assume responsibility for the proper use, maintenance, management, control and safeguarding of the equipment.

(3) Control of equipment shall be the responsibility of the party to whom ownership is assigned.

(A) The owner of the equipment shall have a capital asset management system to ensure adequate safeguards to prevent loss, damage, or theft of the equipment.

(B) Any loss, damage, or theft of equipment shall be investigated. Cases of theft will be pursued to the fullest extent of the law.

(C) Local Government and/or other responsible party shall provide reimbursement to RPC, or owner, for damage to 9-1-1 and Addressing equipment caused by intentional abuse, misuse or negligence by PSAP employees, County/Addressing personnel, or other persons to whom custodial responsibility is assigned. This provision shall not include ordinary wear and tear or ordinary day to day use of equipment.

(4) Disposition of equipment shall take place when original or replacement equipment acquired with 9-1-1 funds is obsolete, failing repeatedly, or scheduled for replacement; or, when the equipment is no longer needed for the original project or program.

(A) Methods used to determine per-unit fair market value must be documented, kept on file and made available to the RPC and CSEC [ ACSEC ] upon request, and as outlined in the remainder of this rule.

(B) [ (A) ] Equipment [ with a current fair-market value of less than $1,000 ] may be retained, sold or otherwise disposed of with no further obligation to the awarding agency. If sold, the resulting revenue shall be credited to the RPC local funds and recorded as "Other Revenue." [ returned to the capital recovery fund. ] If transferred to another program funded by federal or state funds, the transfer of ownership shall be documented.

[(B) Equipment with a current fair-market value of more that $1,000 may be retained or sold. If sold, the resulting revenue shall be returned to the capital recovery fund. Proper sales procedures must be established to ensure the highest possible return.]

(C) Equipment may be used for trade-in value to offset the cost of replacement.

(d) Maintenance - Maintenance procedures shall be in place to keep the property in good condition.

(1) Regional planning commissions funding the purchase and/or lease of 9-1-1 equipment shall develop and adopt maintenance plans covering the equipment involved as part of the regional plan within 30 days of purchase.

(2) Emergency communication districts requesting 9-1-1 funds in accordance with established rules and procedures for the maintenance of 9-1-1 equipment shall provide a maintenance plan for the equipment involved within 30 days of purchase.

(3) Maintenance plans shall be provided to the CSEC [ ACSEC ] in conjunction with equipment plan amendments or district requests submitted to the CSEC [ Commission ]. For equipment purchased and/or leased prior to the adoption of this rule, maintenance plans for regional planning commissions shall be submitted to the CSEC [ ACSEC ] for consideration no later than the beginning of the next budget cycle from the date of adoption of this rule.

(4) Annual budgeted costs associated with the maintenance of 9-1-1 equipment shall be monitored by the CSEC [ ACSEC ] staff for consistency with approved maintenance plans. Such costs that are determined by the CSEC [ ACSEC ] staff to not be consistent with approved maintenance plans shall be reviewed and approved by the CSEC [ Commission ].

(e) Requirements for Capital [ Recovery ] Tracking. A Capital Asset [ Recovery ] Schedule that lists 9-1-1 related equipment by [ recoverable ] item shall be included in each regional planning commission's strategic plan. Strategic plans are required under the Health and Safety Code, Chapter 771 and §251.6 of this title (relating to Guidelines for Strategic Plans, Amendments, and Equalization Surcharge Allocation). A Capital Asset [ Recovery ] Schedule shall be maintained by the regional council in a spreadsheet or database that includes the following information for each item listed.

(1) Date Acquired ;

(2) Description ;

(3) Location of the Equipment ;

(4) Identifying Number (Serial, Asset Tag, etc.) ;

(5) Percent of State Participation (Cost Sharing) ;

(6) Original Recovery Value ;

(7) Life Assigned (In Years) ;

[(8) Annual Recovery Amount by Year (The total for all items recovered should be equal to the annual amount that is identified in the strategic plan for all components for one given year. The total amount should also correspond to the budget amount identified in the quarterly Financial Status Report)]

(8) [ (9) ] Responsible Agency (Person in Possession) ;

(9) [ (10) ] Estimated Replacement Date ;

(10) [ (11) ] Addressing Program Asset? (Y/N) .

[(f) Requirements for Capital Recovery Fund Contributions. Contributions shall be made to the fund at least once a quarter until the full fiscal year contribution budget has been reached. The total deposit to the capital recovery account for a given year shall not exceed the total amount identified in the strategic plan for that same year for all levels. Should funding not be available to fully fund capital recovery in all counties, the RPC shall balance regional priorities with the need to maintain a consistent level of service in all counties.]

(f) [ (g) ] Requirements for Capital [ Recovery ] Fund Expenditures. Expenditures from the capital recovery schedule shall be reported on the following Financial Status Report submitted to the CSEC [ ACSEC ] as required by §251.6 of this title (relating to Guidelines for Strategic Plans, Amendments, and Equalization Surcharge Allocation).

(1) The RPC shall submit with the FSR a "Capital Recovery Asset Disposal Notice" (as promulgated by the ACSEC) for each item that is replaced using Capital Recovery Funds as follows.

Figure: 1 TAC §251.5 (f) [ (g) ](1)

(2) Should additional funds be needed, the balance of funds needed for costs above original equipment costs must be identified in the strategic plan in the corresponding county narrative and submitted to CSEC [ ACSEC ] through an amendment.

[(3) Capital recovery funds set aside for replacement of an asset and not expended when purchasing a replacement asset shall be returned to the capital recover fund for future use.]

(g) [ (h) ] Addressing Capital Equipment [ Recovery ]. Costs for the replacement of addressing equipment purchased with 9-1-1 funds shall be reflected within the regional planning council strategic plan. Computers, printers, plotters, distance measuring devices (DMD), global positioning satellite (GPS) equipment and sign-making machines that meet the definition of Capital Equipment, shall be included in the schedule.

(h) [ (i) ] Emergency Communication Districts. Those districts requesting 9-1-1 funds in accordance with established rules and procedures for the replacement of 9-1-1 equipment shall provide a replacement plan for the equipment involved.

(i) [ (j) ] Annual Certification. Regional planning commissions shall submit an "Annual Certification of 9-1-1 Assets" (as promulgated by the CSEC [ ACSEC ]) to the CSEC [ ACSEC ] at least once each fiscal year. In accordance with UGMS, a physical inventory of the property must be taken and the results reconciled with the property records at least once every year. The RPC shall document and maintain all such inventory records, and will submit copies to the CSEC [ ACSEC ] upon request.

Figure: 1 TAC §251.5 (i) [ (j) ]

(j) [ (k) ] Monitoring. The CSEC [ Commission ] reserves the right to perform on-site monitoring of the RPC and/or its performing Local Governments or PSAPs for compliance with this rule as well as all applicable law, policies and procedures. All monitoring activities will be conducted in accordance with [ ACSEC ] §251.11 of this title (relating to Monitoring Policies and Procedures).

(k) [ (l) ] Other Issues.

(1) The management and disposition of equipment shall follow UGMS. Funds acquired from the disposal of assets shall be returned to the regional planning commission as "Other Revenue." [ 9-1-1 capital recovery fund. ]

(2) The Texas State Property Accounting Policies and Procedures Manual shall be referenced for guidance [ (Comptroller of Public Accounts, May 1997; Phone number (512) 305-9954) ] when questions arise to particular questions not covered in this rule.

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 August 6, 2001.

TRD-200104475

Carey F. Spence

Interim Executive Director

Commission on State Emergency Communications

Earliest possible date of adoption: September 16, 2001

For further information, please call: (512) 305-6933