TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 3. OIL AND GAS DIVISION

The Railroad Commission of Texas (Commission) adopts amendments to §3.5, relating to applications to drill, deepen, reenter or plug back; §3.11, relating to inclination and directional surveys; §3.37, relating to statewide spacing rule; §3.38, relating to well densities; the repeal of existing §3.70, relating to Commission forms required to be filed; amendments to §3.78, relating to fees, performance bonds and alternate forms of financial security required to be filed; and amendments to §3.86, relating to horizontal drainhole wells, without changes to the versions published in the March 23, 2001, issue of the Texas Register (26 TexReg 2257). The Railroad Commission of Texas (Commission) adopts new §3.80, relating to Commission forms, applications and filing requirements, with one change to the version published in the March 23, 2001, issue of the Texas Register (26 TexReg 2257). This change adds the word "applications" to the title of the new rule.

The Commission repeals former §3.70 and adopts new §3.80 to conform the Texas Administrative Code section number to the Statewide Rule number. The new rule will also change the title in the Texas Administrative Code to conform with the title adopted by the Commission for this rule. Substantive changes in §3.80 include the specification of requirements for electronic filings under both the Electronic Compliance and Approval Process (ECAP) and the Electronic Data Interchange (EDI) program.

The Commission received no comments on the proposal.

The Commission simultaneously readopts these rules, with the amendments, in accordance with Tex. Gov't Code, §2001. The agency's reasons for adopting these rules continue to exist. The notice of proposed review of §3.11 was filed with the Texas Register concurrently with this proposal and published in the March 23, 2001, issue of the Texas Register (26 TexReg 2412).

16 TAC §§3.5, 3.11, 3.37, 3.38, 3.78, 3.80, 3.86

The Commission adopts the new section and amendments under Texas Natural Resources Code, §81.052, which authorizes the Commission to adopt all necessary rules for governing persons and their operations under the jurisdiction of the Commission under §81.051; Texas Natural Resources Code, §85.161-.167, which authorizes the Commission to require, administer, and cancel certificates of compliance; Texas Natural Resources Code, §91.114, which authorizes the Commission to accept, reject, or revoke reports filed with the Commission; and Texas Natural Resources Code, §91.142 which authorizes the Commission to require business entities to file organization reports.

Texas Natural Resources Code §§81.052, 85.041, 85.042, 85.161-.167, 85.201, 85.202, 91.114, and 91.142 are affected by the adopted new section and amendments.

Issued in Austin, Texas, on May 22, 2001.

§3.80.Commission Forms, Applications and Filing Requirements.

(a)

Forms. Forms required to be filed at the commission will be those prescribed by the commission. The Commission may revise any forms, at its discretion, without having a rulemaking proceeding if the revisions do not result in any substantive changes to the forms. A complete set of all commission forms required to be filed at the commission will be kept by the commission secretary. Notice of any new or amended forms shall be issued by the 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)

Commission--The Railroad Commission of Texas.

(2)

Position of ownership or control--A person holds a position of ownership or control in an organization if the person is:

(A)

an officer or director of the organization;

(B)

a general partner of the organization;

(C)

the owner of an organization which is a sole proprietorship;

(D)

the owner of more than a 25 percent ownership interest in the organization; or

(E)

the designated trustee of the organization.

(3)

Violation--Non-compliance with a statute, commission rule, order, license, permit, or certificate relating to safety or the prevention or control of pollution.

(4)

Electronic filing--An electronic transmission to the commission in the prescribed form and format authorized by the commission.

(5)

Organization--Any person, firm, partnership, joint stock association, corporation, or other organization, domestic or foreign, operating wholly or partially within this state, acting as principal or agent for another, for the purpose of performing operations within the jurisdiction of the commission.

(c)

Organization eligibility. The commission may not accept an organization report or an application for a permit, or approve a certificate of compliance if:

(1)

the organization that submitted the report, application, or certificate violated a statute or commission rule, order, license, certificate, or permit that relates to safety or the prevention or control of pollution; or

(2)

any person who holds a position of ownership or control in the organization has, within the five years preceding the date on which the report, application, or certificate is filed, held a position of ownership or control in another organization, and during that period of ownership or control the other organization violated a statute or commission rule, order, license, permit, or certificate that relates to safety or the prevention or control of pollution.

(d)

Violations. An organization has committed a violation if there is either a commission order against an organization finding that the organization has committed a violation and all appeals have been exhausted or an agreed order entered into by the commission and an organization relating to an alleged violation, and:

(1)

the conditions that constituted the violation or alleged violation have not been corrected;

(2)

all administrative, civil and criminal penalties, if any, relating to the violation or agreed settlement relating to an alleged violation have not been paid; or

(3)

all reimbursements of costs and expenses, if any, assessed by the commission relating to the violation or to the alleged violation have not been collected.

(e)

Requirements for electronic filing under the Electronic Compliance and Approval Process (ECAP). An organization may submit to the commission an electronic filing pursuant to the Electronic Compliance and Approval Process if:

(1)

the organization and the commission have executed a Master Electronic Filing Agreement;

(2)

the commission has authorized the electronic filing in a prescribed form and format as identified in Supplement 1 to the Master Electronic Filing Agreement;

(3)

the organization has filed a Security Administrator Designation with the commission; and

(4)

the organization pays all required filing fees.

(f)

Requirements for electronic filing under the Electronic Data Interchange (EDI) program. An organization may submit an electronic filing with the commission pursuant to the Electronic Data Interchange program if:

(1)

the organization has executed a Master Electronic Filing Certification;

(2)

the commission has authorized the electronic filing in a prescribed form and format under the Electronic Data Interchange program; and

(3)

the organization and any authorized agent comply with all provisions published by the commission for electronic filings.

(g)

Other electronic transmissions. The commission may at its discretion accept written notice electronically transmitted.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 22, 2001.

TRD-200102850

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Effective date: June 11, 2001

Proposal publication date: March 23, 2001

For further information, please call: (512) 475-1295


16 TAC §3.70

The Commission adopts the repeal under Texas Natural Resources Code, §81.052, which authorizes the Commission to adopt all necessary rules for governing persons and their operations under the jurisdiction of the Commission under §81.051; Texas Natural Resources Code, §85.161-.167, which authorizes the Commission to require, administer, and cancel certificates of compliance; Texas Natural Resources Code, §91.114, which authorizes the Commission to accept, reject, or revoke reports filed with the Commission; and Texas Natural Resources Code, §91.142 which authorizes the Commission to require business entities to file organization reports.

Texas Natural Resources Code §§81.052, 85.041, 85.042, 85.161-.167, 85.201, 85.202, 91.114, and 91.142 are affected by the adopted repeal.

Issued in Austin, Texas, on May 22, 2001.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 22, 2001.

TRD-200102849

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Effective date: June 11, 2001

Proposal publication date: March 23, 2001

For further information, please call: (512) 475-1295


Chapter 12. COAL MINING REGULATIONS

The Railroad Commission of Texas adopts amendments to 16 TAC §12.80, relating to Procedures: Initial Processing, Record Keeping, and Notification Requirements; §12.385, relating to Backfilling and Grading: General Grading Requirements; §12.552, relating to Backfilling and Grading: General Grading Requirements; and §12.651, relating to Coal Processing Plants: Performance Standards, without change to the versions published in the March 23, 2001, issue of Texas Register (26 TexReg 2268). The commission adopts the amendments to maintain consistency with federal regulations and to streamline the effectiveness of commission rules.

Amended §12.80(a)(1) reduces the number of days, from 60 to 30 days from the date of receipt of petition, within which the commission must notify a petitioner of petition completeness. This amendment parallels federal regulation 30 CFR §764.15(a)(1), relating to initial processing, record-keeping, and notification requirements.

Amended §12.80(a) removes paragraph (3), which states that the commission may reject frivolous petitions for designation or petitions for termination of designations, that no party bears the burden of proof, and that each petition shall be considered and acted upon by the commission. This amendment, removal of former paragraph (3), streamlines the effectiveness of commission rules and parallels the federal regulation 30 CFR §764.15(a)(1), relating to initial processing, record-keeping, and notification requirements.

Amended §12.80(a)(4) adds that a petition can be determined to be frivolous if available information shows that either no mineable coal resources exist in the petitioned area or the petitioned area is not or could not be subject to related surface coal mining operations and surface impacts incident to an underground coal mine or an adjoining surface mine. This amendment parallels federal regulations dealing with designation of federal lands as unsuitable for coal mining, 30 CFR §769.140(a)(3)(ii), relating to initial processing, record-keeping, and notification requirements.

Section 12.80(a)(4) - (7) are redesignated as §12.80(a)(3) - (6).

Section 12.80(b)(2) that states the commission may provide for a hearing or period of written comments on completeness of the petition is removed. This removal streamlines the effectiveness of commission rules and parallels the federal regulation 30 CFR §764.15(a)(1), relating to initial processing, record-keeping, and notification requirements.

Section 12.80(b)(3) is redesignated as (b)(2).

Amended §12.385(a) deletes the provisions that pertain to performance standards for backfilling and grading of previously mined land. This is required by the Office of Surface Mining Reclamation and Enforcement, United States Department of Interior (OSM).

New §12.385(e) includes provisions for backfilling and grading of previously mined areas that are substantially identical to the corresponding federal regulation 30 CFR §816.106, relating to backfilling and grading: previously mined areas. This is required by OSM.

Amended §12.552(a) deletes the provisions that pertain to performance standards for backfilling and grading on previously mined land. This is required by OSM.

New §12.552(e) includes provisions for backfilling and grading of previously mined areas that are substantially identical to the corresponding federal regulation 30 CFR §817.106, relating to backfilling and grading: previously mined areas. This is required by OSM.

Amended §12.651(13) adds reference citations to §§12.224 - 12.338, relating to proper topsoil handling. This is required by OSM.

The commission received no comments on the proposed amendments.

Subchapter F. LANDS UNSUITABLE FOR MINING

4. PROCESS FOR DESIGNATING AREAS AS UNSUITABLE FOR SURFACE COAL MINING OPERATIONS

16 TAC §12.80

The amendments are adopted under Texas Natural Resources Code §134.013, which provides the commission the authority to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the amendments.

Issued in Austin, Texas, on May 22, 2001.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2001.

TRD-200102861

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Effective date: June 12, 2001

Proposal publication date: March 23, 2001

For further information, please call: (512) 475-1295


Subchapter K. PERMANENT PROGRAM PERFORMANCE STANDARDS

2. PERMANENT PROGRAM PERFORMANCE STANDARDS - SURFACE MINING ACTIVITIES

16 TAC §12.385

The amendments are adopted under Texas Natural Resources Code §134.013, which provides the commission the authority to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the amendments.

Issued in Austin, Texas, on May 22, 2001.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2001.

TRD-200102860

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Effective date: June 12, 2001

Proposal publication date: March 23, 2001

For further information, please call: (512) 475-1295


3. PERMANENT PROGRAM PERFORMANCE STANDARDS--UNDERGROUND MINING ACTIVITIES

16 TAC §12.552

The amendments are adopted under Texas Natural Resources Code §134.013, which provides the commission the authority to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the amendments.

Issued in Austin, Texas, on May 22, 2001.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2001.

TRD-200102859

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Effective date: June 12, 2001

Proposal publication date: March 23, 2001

For further information, please call: (512) 475-1295


7. SPECIAL PERMANENT PROGRAM PERFORMANCE STANDARDS--COAL PROCESSING PLANTS AND SUPPORT FACILITIES NOT LOCATED AT OR NEAR THE MINESITE OR NOT WITHIN THE PERMIT AREA FOR A MINE

16 TAC §12.651

The amendments are adopted under Texas Natural Resources Code §134.013, which provides the commission the authority to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the amendments.

Issued in Austin, Texas, on May 22, 2001.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2001.

TRD-200102858

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Effective date: June 12, 2001

Proposal publication date: March 23, 2001

For further information, please call: (512) 475-1295


Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 60. TEXAS COMMISSION OF LICENSING AND REGULATION

Subchapter B. ORGANIZATION

16 TAC §60.64

The Texas Department of Licensing and Regulation adopts amendments to §60.64 concerning duration of advisory committee/boards/councils governed by the Texas Commission of Licensing and Regulation, without changes, as published in the April 13, 2001, issue of the Texas Register (26 TexReg 2802) and will not be republished.

The amendments to §60.64 specify that the Auctioneer Education Advisory Board and the Property Tax Consultants Advisory Council is in effect until September 1, 2004. The Texas Government Code §2110.008(a) states that a state agency that is advised by an advisory committee shall establish by rule a date on which the committee will automatically be abolished. The advisory committee may continue in existence after that date only if the governing body of the agency affirmatively votes to continue the committee in existence. At their May 22, 2000 meeting, the Texas Commission of Licensing and Regulation voted unanimously to continue the Auctioneer Education Advisory Board and the Property Tax Consultants Advisory Council until September 1, 2004. The amendments reflect these changes.

No comments were received regarding adoption of these amendments.

This section will provide an opportunity for the public and industry representatives to advise the Commissioner on matters relating to auctioneers and property tax consultants.

The amendment is adopted under the Texas Occupations Code, Chapter 51, §51.203. The Department interprets §51.203 as authorizing the Commissioner to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provision affected by the adopted amendment is Texas Occupations Code, Chapter 51, §51.203. No other statutes, articles, or codes are affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 24, 2001.

TRD-200102917

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: June 13, 2001

Proposal publication date: April 13, 2001

For further information, please call: (512) 463-7348


Chapter 70. INDUSTRIALIZED HOUSING AND BUILDINGS

16 TAC §§70.20, 70.22, 70.50, 70.73

The Texas Department of Licensing and Regulation adopts amendments to §§70.20, 70.22, 70.50, and 70.73 concerning industrialized housing and buildings. Sections 70.20 and 70.50 are adopted with changes to the proposed text as published in the April 13, 2001 issue of the Texas Register (26 TexReg 2802). Sections 70.22 and 70.73 are adopted without changes as published in the April 13, 2001 issue of the Texas Register (26 TexReg 2802) and will not be republished.

The changes to §§70.20 and 70.50 from what was previously proposed are grammatical changes. The sections are being adopted to amend registration requirements for industrialized builders, to amend plan reviewer requirements for design review agencies, to eliminate the reporting requirement for industrialized builders, to clarify reporting requirements for manufacturers, to add a requirement for yearly audits of the records of industrialized builders, and to clarify the requirements for building site inspections and site inspection reports.

No comments were received regarding adoption of these amendments.

The amendments will help improve the efficiency of the industrialized housing and buildings program.

The amendments are adopted under the Texas Occupations Code, Chapter 51, §51.203 and Texas Revised Civil Statutes Annotated, Article 5221f-1, §6. The Department interprets §51.203 as authorizing the Commissioner of the Texas Department of Licensing and Regulation to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department. The Department interprets §6 as authorizing the Commissioner to adopt rules as appropriate to implement actions, decisions, interpretations and instructions of the Texas Industrialized Building Code Council with respect to the Industrialized Housing and Buildings program.

The statutory provisions affected by the adopted amendments are Texas Occupations Code, Chapter 51, §51.203 and Texas Revised Civil Statutes Annotated, Article 5221f-1, §6. No other statutes, articles, or codes are affected by the adoption.

§70.20.Registration of Manufacturers and Industrialized Builders.

Manufacturers and industrialized builders shall not engage in any business activity relating to the construction or location of industrialized housing or buildings without being registered with the department.

(1)

An application for registration shall be submitted on a form supplied by the department, and shall contain such information as may be required by the department. The application must be verified under oath by the owner of a sole proprietorship, the managing partner of a partnership, or the officer of a corporation. The application must be accompanied by the fee set forth in §70.70 of this title (relating to Commission Fees).

(2)

The industrialized builder shall verify under oath at the time of registration that the foundation and installation of all units installed under this registration shall be constructed in accordance with the mandatory state codes, the engineered plans, and department rules, and shall be inspected in accordance with the site inspection procedures established by the Texas Industrialized Building Code Council.

(3)

A person who does not purchase industrialized housing or buildings from a manufacturer for sale or lease to the public may file for an installation permit in lieu of registering as an industrialized builder. A person who buys or leases industrialized housing or buildings from an industrialized builder and assumes responsibility for the installation of the unit or units, but who is not purchasing these units for sale or lease to the public, may apply for an installation permit in lieu of registering as an industrialized builder. The application shall be submitted on a form supplied by the Department and shall contain such information as may be required by the Department. A separate application must be submitted for each building containing industrialized housing and buildings modules or modular components. The application must be accompanied by the fee set forth in §70.80 of this title (relating to Commission Fees).

(4)

The registration shall be valid for 12 months and must be renewed annually. Every corporate entity must be separately registered. Each separate manufacturing facility must be registered; a manufacturing facility is separate if it is not on property that is contiguous to a registered manufacturing facility. An industrialized builder must register each separate sales office but is not required to register each job location.

(5)

A registered manufacturer or industrialized builder shall notify the department in writing within 10 days if:

(A)

the corporate or firm name is changed;

(B)

the main address of the registrant is changed;

(C)

there is a change in 25% or more of the ownership interest of the company within a 12-month period;

(D)

the location of any manufacturing facility is changed;

(E)

a new manufacturing facility is established; or

(F)

there are changes in principal officers of the firm.

(6)

A manufacturer certified pursuant to §70.61 of this title (relating to Responsibilities of the Department - Plant Certification), whose registration expires shall have his certification revoked if the registration is not renewed within 30 day of the expiration date. A manufacturer whose certification has been revoked must undergo another certification inspection to reinstate the certification.

(7)

An application for original registration or renewal may be rejected if any information contained on, or submitted with, the application is incorrect. The certificate of registration may be revoked or suspended or a penalty or fine may be imposed for any violation of the Act, violation of the rules and regulations in this chapter or administrative orders of the department, or violations of the instructions and determinations of the council in accordance with §70.90 of this title (relating to Sanctions - Administrative Sanctions/Penalties), and §70.91 of this title (relating to Revocation or Suspension because of a Criminal Conviction).

§70.50.Manufacturer's and Builder's Monthly Reports.

(a)

The manufacturer shall submit a monthly report to the department, of all industrialized housing, buildings, modules, and modular components that were constructed and to which decals and insignia were applied during the month. The manufacturer shall keep a copy of the monthly report on file for a minimum of five years. Any corrections to reports previously filed shall clearly indicate the corrections to be made and the month and date of the report that is being corrected. The report shall contain:

(1)

the serial or identification number of the units;

(2)

the decal or insignia number assigned to each identified unit;

(3)

the name and registration number of the industrialized builder (as assigned by the department), or the installation permit number (as assigned by the department) of the person, to whom the units were sold, consigned, and shipped. The requirements contained in §70.20(2) (relating to Registration of Manufacturers and Industrialized Builders) shall apply when an installation permit is reported in lieu of the registration number of an industrialized builder;

(4)

the address to which the units were shipped;

(5)

an identification of the type of structure for which the units are to be used, e.g., single family residence, duplex, restaurant, equipment shelter, bank building, hazardous storage building, etc.;

(6)

any other information the department may require; and

(7)

an indication of zero units if there was not activity for the reporting month.

(b)

Each industrialized builder shall keep records of all industrialized housing, buildings, modules, and modular components that were sold, leased, or installed. These records shall be kept for a minimum of five years from the date of sale, lease, or installation and shall be made available to the department for review upon request. An annual audit of units sold, leased, or installed by the builder shall be conducted by the Department. The audit will identify the modules or modular components by the name and Texas registration number of the manufacturer of each unit and the assigned Texas decal or insignia numbers and the corresponding identification, or serial, numbers as assigned by the manufacturer. The builder shall report or provide the following information to the Department for each unit identified in the audit within the timeframe set by the audit:

(1)

evidence of compliance with §70.75 of this title (relating to Responsibilities of Registrants - Permit/Owner Information);

(2)

the address where each unit was installed. If the builder is not responsible for the installation, then the address to where each unit was delivered;

(3)

the occupancy use of each building containing modules or modular components, i.e., classroom, restaurant, bank, equipment shelter, etc; and

(4)

identification of the type of foundation system, either permanent or temporary, on which each unit was installed, in accordance with the following.

(A)

If the builder is responsible for the installation and site work, then the builder:

(i)

shall, for units installed outside the jurisdiction of a municipality, keep a copy of the foundation plans and, for units installed on a permanent foundation, keep a copy of the site inspection report in accordance with §70.73 of this title (relating to Responsibilities of the Registrants - Building Site Inspections). A copy of these documents shall be made available to the department upon request; or

(ii)

shall, if installed within the jurisdiction of a municipality, provide the name of the city responsible for the site inspection.

(B)

If the builder is not responsible for the installation and site work, then the builder shall provide identification of the installation permit number, assigned by the Department, or builder registration number, assigned by the Department, of the person responsible.

(c)

The manufacturer's monthly reports must be filed with the department no later than the 10th day of the following month.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 24, 2001.

TRD-200102918

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: June 13, 2001

Proposal publication date: April 13, 2001

For further information, please call: (512) 463-7348


Chapter 75. AIR CONDITIONING AND REFRIGERATION CONTRACTOR LICENSE LAW

16 TAC §75.20

The Texas Department of Licensing and Regulation adopts an amendment to §75.20 concerning air conditioning and refrigeration contractors, without changes, as published in the March 30, 2001, issue of the Texas Register (26 TexReg 2472) and will not be republished.

The amendment corrects an omission in the previous rule adoption. The Department proposed and adopted amendments to §75.20, however, subsection (c) was inadvertently omitted and the Secretary of State's rules on correction do not allow an agency to submit corrections after the effective date of a rule. The Department is correcting this oversight by adding subsection (c) back into the rules.

No comments were received regarding adoption of this amendment.

This section will function by clarifying that obtaining a license by fraud or false representation is grounds for administrative sanctions and/or penalties which enforces the licensing requirements.

The amendment is adopted under the Texas Occupations Code, Chapter 51, §51.353 and Texas Revised Civil Statutes Annotated, Article 8861, §5. The Department interprets §51.353 as authorizing the Commissioner of the Texas Department of Licensing and Regulation to adopt rules relating to administrative sanctions that may be enforced against a person regulated by the department. The Department interprets §5 as authorizing the Commissioner to deny, suspend or revoke a license for a violation under Article 8861 with respect to the Air Conditioning and Refrigeration Contractors License Law program.

The statutory provisions affected by the adopted amendment are Texas Occupations Code, Chapter 51, §51.353 and Texas Revised Civil Statutes, Article 8861, §5. No other statutes, articles, or codes are affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 24, 2001.

TRD-200102916

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: June 13, 2001

Proposal publication date: March 30, 2001

For further information, please call: (512) 463-7348