TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 5. TEXAS VETERANS LAND BOARD

Chapter 175. GENERAL RULES OF THE VETERANS LAND BOARD

Subchapter A. GENERAL RULES AND CONTRACTING FINANCING

40 TAC §175.2

The Veterans Land Board of the State of Texas (the "Board") proposes an amendment to Title 40, Part 5, Chapter 175 of the Texas Administrative Code, §175.2 relating to Loan Eligibility Requirements of the General Rules of the Veteran Land Board. This amendment will change the definition of "surviving spouse" in 175.2(a)(5) to match the federal definition. This amendment will also change 175.2(c)(2) so that the surviving spouse of a veteran is eligible, if the veteran died as a result of a service-connected cause and would have been otherwise eligible, but did not enter military service from Texas. The proposed amendment to 175.2(a)(5) was previously proposed in the March 14, 2003, edition of the Texas Register (28 TexReg 2287) and is simultaneously being withdrawn in order to propose both amendments together.

Sections 161.001(b) and 162.001(b) of the Tex. Nat. Res. Code authorize the Board to change the definition of Veteran if it is in the best interest of the programs. The Board finds that it serves the best interest of the programs if a surviving spouse that is eligible for federal housing benefits is also eligible for the Board programs. The amendment to §175.2(a)(5) will incorporate the federal definition and modifications of the term "surviving spouse," including any future changes. The Board also finds that the present rule does not extend the benefits of the loan programs to the surviving spouse of a Veteran that would have been eligible for a loan, who has died as a result of a service-connected cause, but did not enter the service with Texas as his home of record. The amendments to §175.2(c)(2) will change the eligibility of a surviving spouse to include the surviving spouse of a Veteran who died as a result of a service-connected cause and who was a legal resident of Texas at the time of his or her death. (§177.5(b) of Title 40, Part 5, Chapter 177 of the Texas Administrative Code automatically incorporates by reference the changes in this amendment.)

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, there will be no significant fiscal implication to state or local government as a result of administering this section as amended.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, the public will benefit because the proposed amendment will allow the Board to be consistent with and function with federal loan programs. In addition, the public will benefit because the Board will be able to accept applications from the surviving spouse of any Veteran who would have been eligible for a loan but died as a result of a service-connected cause.

Mr. Oldmixon has determined that the proposed amendment will have no significant effect on small businesses during each year of the first five years the section is in effect.

Mr. Oldmixon has also determined that during each year of the first five years the proposed amendment is in effect, the anticipated economic cost to persons who are required to comply with the section will be insignificant. Persons who seek financing from the Board through the Program will pay the same fees to the Board, and costs to third parties, as previously required.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board has determined that during each year of the first five years the proposed amendment is in effect, the anticipated impact on local employment will be insignificant.

Comments may be submitted to Melinda Tracy, Legal Service, General Land Office of the State of Texas, 1700 N. Congress Avenue, Austin Texas, facsimile (512) 463-6311, by no later than 30 days after publication.

The amendment to this section is proposed under the Natural Resources Code, Title 7, Chapter 161, §§161.001, 161.061, 161.063, 161.218, 161.222, 161.233, and 161.283, 161.503, 162.001, and Chapter 162, §§162.001, 162.003, 162.011. These sections authorize the Board to adopt rules that it considers necessary and advisable for the Land Program.

The proposed amendment affects Chapter 161.001 and 162.001 of the Nat. Res. Code.

§175.2.Loan Eligibility Requirements.

(a) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Veterans Land Board of the State of Texas.

(2) Bona fide resident--An individual actually living within the State of Texas with the intention to remain.

(3) Missing/Missing in Action--To have an official designation of "missing status" as provided by Title 37, Chapter 10 of the United States Code relating to Payments to Missing Persons. The term "missing status" means the status of members of a uniformed service who are officially carried or determined to be absent in a status of missing; missing in action; interned in a foreign country; captured; beleaguered, or besieged by a hostile force; or detained in a foreign country against their will.

(4) Program--The Veterans Land Program as authorized by Title 7, Chapter 161 of the Texas Natural Resources Code relating to Veterans Land Board.

(5) Surviving spouse--A person who satisfies the federal definition of "surviving spouse" contained in Title 38 USC Sec. 101(3), as modified by the special provision in Title 38 USC Sec. 103, or any successor statutes, as amended from time to time. The board's intent is to match the eligibility requirements for a surviving spouse to qualify for a home loan guaranteed by the USDVA. [ of the opposite sex who was the spouse of a veteran at the time of the veteran's death, and who lived with the veteran continuously from the date of marriage to the date of the veteran's death (except where there was a separation which was due to the misconduct of, or procured by, the veteran without the fault of the spouse) and who has not remarried or (in cases not involving remarriage) has not since the death of the veteran, and after September 19, 1962, lived with another person and held himself or herself out openly to the public to be the spouse of the other person ]

(6) USDVA/VA--The United States Department of Veterans Affairs or any successor thereto.

(7) Veteran--A person who satisfies the requirements of subsection (c)(1) of this section.

(b) The Board shall be the final authority in defining and interpreting all eligibility requirements, and whether an applicant has actually satisfied those requirements. The Board may by resolution prescribe the procedures and forms to be used by applicants to evidence eligibility.

(c) To be eligible to participate in the program, an applicant must satisfy one of the following:

(1) be a person who:

(A) is at least 18 years of age;

(B) is a bona fide resident of Texas at the time of application for a loan. Active duty military personnel who otherwise meet the requirements of this subsection are eligible even though stationed outside of Texas at the time of application;

(C) satisfied one of the following service requirements after September 16, 1940:

(i) has served not less than 90 continuous days of active duty or active duty training time in the Army, Navy, Air Force, Coast Guard, Marine Corps, United States Public Health Service, or the reserve component of one of the listed branches of service, unless discharged earlier because of a service-connected cause;

(ii) has completed all initial active duty training required as a condition of the enlistment or appointment in the Texas National Guard; or

(iii) has at least 20 years of active or reserve military service as computed when determining the applicant's eligibility to receive retired pay under applicable federal law.

(D) is considered not to have been dishonorably discharged under subsection (j) of this section, if the person has been discharged from military service; and

(E) satisfies one of the following:

(i) was a bona fide resident of Texas at the time of enlistment, induction, commissioning, appointment or drafting; or

(ii) has been a legal resident of Texas for at least one year immediately before the date of application.

(2) is the surviving spouse of a veteran who died as a result of a service-connected cause, as certified by the USDVA, or who is identified as missing in action, if the spouse satisfies the requirements of subparagraphs (A) and (B) of subsection (c)(1) of this section, and the veteran satisfied the requirements of subparagraphs (C) and (D) of subsection (c)(1) of this section and either [ , (D) and ](E)(i) of subsection (c)(1) of this section or the Veteran was a legal resident of Texas at the time of his or her death.

(3) is the surviving spouse of a veteran who died after filing an application and contract of sale with the Board, but before the transaction was completed, if he or she meets all other qualification requirements of the Board.

(d) A person may only have one loan at a time as a veteran. However, once that loan is paid in full he or she may apply for an additional loan as a veteran. The foregoing notwithstanding, an individual who is currently participating in the program as a veteran may take an assignment of a contract or contracts as a non-veteran and may bid on a tract or tracts at a forfeited land sale as a non-veteran.

(e) The applicant must sign applications and contracts. An attorney in fact may not sign these documents for an applicant, except under limited conditions approved by the Board.

(f) No application shall be approved to purchase land under the program:

(1) which provides for or recognizes a second or subordinate lien as a part of the original purchase price for any tract;

(2) where there is evidence that the benefits derived from the use of the land will not pass to the applicant; or

(3) where there exists any other good and sufficient reason to refuse approval, as determined by the chairman of the Board.

(g) If for any reason a veteran's application is not processed to completion, the down payment will be refunded to the veteran, together with the unused portion of any fees that have been deposited with the board.

(h) Each application will be considered as a wholly separate transaction, independent of any other agreement, transaction or contingency. The board will not consider an application which contains a provision making it contingent upon the success or completion of another agreement or transaction.

(i) Any requirement of this section, or of any section within this chapter, which is not otherwise required by the constitution or statutes of this state, may be waived on a case by case basis by the Veterans Land Board. Any waiver request must be in writing and must describe the circumstances surrounding the request, including all of the reasons why the waiver is requested.

(j) For purposes of this section, a person who has been discharged from the branch of the service in which the person served or from the Texas National Guard is considered not to have been dishonorably discharged if the person:

(1) received an honorable discharge;

(2) received a discharge under honorable conditions; or

(3) received a discharge and provides evidence from the United States Department of Veterans Affairs, its successor, or other competent authority that indicates that the character of the person's duty has been determined to be other than dishonorable.

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 March 31, 2003.

TRD-200302124

Larry L. Laine

Chief Clerk, Deputy Commissioner

Texas Veterans Land Board

Earliest possible date of adoption: May 11, 2003

For further information, please call: (512) 305-9129


40 TAC §175.4

The Veterans Land Board of the State of Texas (the "Board") proposes an amendment to Title 40, Part 5, Chapter 175 of the Texas Administrative Code, §175.4, relating to Land Description. This amendment will allow the Chairman to accept a survey or field notes, provided a title insurance company will delete the survey exception in its policy based on that survey. The amendment also requires that any survey or field notes presented to the board include a license by the surveyor for future use.

Section 161.061 of the Tex. Nat. Res. Code authorizes the Board to formulate policies and rules necessary and not in conflict with the law to ensure the proper administration of the program. The Board finds that its current requirements for a survey may exceed the requirements for a title company to insure a survey. The amendment to §175.4 will allow the chairman to accept a field note description or survey and waive any requirement in the rule if a title company will delete the survey exception in its policy. In addition, the Board notes that some surveyors may claim a copyright in a survey or field notes prepared for a transaction involving the Board. The Board may use the survey or field notes in future transactions, and therefore requires a license from the surveyor. The amendment to §175.4 includes a requirement for that license.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, there will be no significant fiscal implication to state or local government as a result of administering this section as amended.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, the public will benefit because the proposed amendment will allow the Board to reduce the initial cost of Veterans Land Board transactions.

Mr. Oldmixon has determined that the proposed amendment will have no significant effect on small businesses during each year of the first five years the section is in effect.

Mr. Oldmixon has also determined that during each year of the first five years the proposed amendment is in effect, the anticipated economic cost to persons who are required to comply with the section will be insignificant. Persons who seek financing from the Board through the Program will pay the same fees to the Board, and costs to third parties, as previously required or may pay less.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board has determined that during each year of the first five years the proposed amendment is in effect, the anticipated impact on local employment will be insignificant.

Comments may be submitted to Melinda Tracy, Legal Service, General Land Office of the State of Texas, 1700 N. Congress Avenue, Austin Texas, by no later than 30 days after publication.

The amendment to this section is proposed under the Natural Resources Code, Title 7, Chapter 161, §§161.001, 161.061, 161.063, 161.214, 161.218, 161.222, 161.233, and 161.283. These sections authorize the Board to adopt rules that it considers necessary and advisable for the Land Program.

The amendment affects §§161.061 & 161.214 of the Tex. Nat. Res. Code.

§175.4.Land Description.

(a) Land selected to be purchased by the board must be described by a legally sufficient metes and bounds description. The property description must:

(1) contain a general description of the land, specifying the acreage contained, the original survey(s) or grant(s) with abstract number(s), survey number(s) and block designation, if applicable, and the county in which the tract is located (if the tract is divided by a county line, the appropriate abstract numbers and acreage on each side of the county line will be shown). The general description shall also contain the deed reference to the parent tract including grantor, grantee, date of instrument, and volume and page of recording. Additional references to other instruments in the chain of title may be referred to if appropriate;

(2) contain a specific description of the land, defining each side of the tract by course and distance or appropriate and complete curve data, identifying and describing monuments at each corner, and further identifying the land by calls for other natural and artificial objects on and along the boundaries and by calls for and reference to adjoining properties where appropriate;

(3) be tied to a corner of an original grant or survey if such corner is locatable and if the tie is not impractical to obtain. If it is impossible or impractical to tie to a corner of an original grant or survey the tract should tie to a locatable corner of the parent tract or any of the adjoinders;

(4) include a description, either by metes and bounds or center line, of the access easement from the tract to an existing public road of all tracts which do not abut a public road.

(b) If the tract selected is in a subdivision, a lot and block description of the tract may be substituted for the metes and bounds description. If a lot and block description is to be used, the board must be furnished a copy of the recorded subdivision plat. This plat must show the recording information and the required signatures of the governmental entity (commissioners court, city council, etc.) authorized to accept such subdivision plat. Easements as necessary for access to a public road from all tracts must be clearly shown on the subdivision plat together with appropriate language dedicating such easement to the public or to the owners of tracts in the subdivision. All the data required in subsection (a) of this section should be shown on the face of the plat, including courses and distances for all lot lines and areas for each lot. All plats accepted subsequent to the adoption of this section shall identify the size and type of monument set at each corner of every lot. If a lot is part of a subdivision already of record where monumentation is not shown, a survey plat shall be furnished indicating monuments set or found at all corners of the tract together with sufficient ties to locate the lot within the subdivision.

(c) All metes and bounds descriptions and survey plats shall bear the seal and original signature of the surveyor preparing the same. Any field notes or survey plat prepared for and used in any Veterans Land Board transaction shall include a license from the surveyor to the board and the veteran purchaser to copy and use the field notes in that transaction and in any future transactions involving the surveyed property.

(d) Metes and bounds descriptions must be prepared from a survey of the property made on the ground. The survey should be made in such manner to be generally acceptable to title companies in the State of Texas for the purpose of deleting the survey exception clause.

(e) Each corner of the tract of land shall be marked by concrete or metal monuments or other durable monuments generally used in the area. A description of each monument set or found and its location, with witnesses as available, shall be incorporated into the metes and bounds description of the property.

(f) When a roadway or easement crosses a tract, it shall be described sufficiently to enable its location throughout the tract and its area to be determined.

(g) Property descriptions and subdivision plats will be examined by the board for acreage, closure, and sufficiency. The board's determination of these items will control.

(h) The surveyor should be instructed to do a proper boundary survey of the land to be conveyed according to the record boundaries of the tracts involved. Any encroachments by existing perimeter fences into the subject tract or into adjacent tracts should be shown together with the area of any lands lying between the record boundaries and the existing occupation. Any occupation on the ground not conforming to the record boundaries should be shown on a plat of survey and fully explained in an accompanying surveyors report.

(i) The chairman may waive any of the foregoing requirements and accept a survey deemed sufficient by the title company to permit deletion of the survey exception clause.

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 March 31, 2003.

TRD-200302119

Larry L. Laine

Chief Clerk, Deputy Commissioner

Texas Veterans Land Board

Earliest possible date of adoption: May 11, 2003

For further information, please call: (512) 305-9129


40 TAC §175.5

The Veterans Land Board of the State of Texas (the "Board") proposes an amendment to Title 40, Part 5, Chapter 175 of the Texas Administrative Code, §175.5, relating to Appraisal of Land. This amendment will correct a reference to another section.

Section 161.061 of the Tex. Nat. Res. Code authorizes the Board to adopt rules. Section 161.212 requires an appraisal of the land. The Board finds that the reference in 175.5(a) to 175.6(c) is incorrect. A previous rule change now requires that the reference be updated to 175.6(d). This amendment changes the reference to the correct section.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, there will be no significant fiscal implication to state or local government as a result of administering this section as amended.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, the public will benefit because the proposed amendment will eliminate any confusion from the Board's rules.

Mr. Oldmixon has determined that the proposed amendment will have no significant effect on small businesses during each year of the first five years the section is in effect.

Mr. Oldmixon has also determined that during each year of the first five years the proposed amendment is in effect, the anticipated economic cost to persons who are required to comply with the section will be insignificant. Persons who seek financing from the Board through the Program will pay the same fees to the Board, and costs to third parties, as previously required.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board has determined that during each year of the first five years the proposed amendment is in effect, the anticipated impact on local employment will be insignificant.

Comments may be submitted to Melinda Tracy, Legal Service, General Land Office of the State of Texas, 1700 N. Congress Avenue, Austin Texas, by no later than 30 days after publication.

The amendment to this section is proposed under the Natural Resources Code, Title 7, Chapter 161, §§161.001, 161.061, 161.063, 161.218, 161.222, 161.233, and 161.283. These sections authorize the Board to adopt rules that it considers necessary and advisable for the Land Program.

The amendment affects §161.212 of the Tex. Nat. Res. Code.

§175.5.Appraisal of Land.

(a) Before property is purchased it shall be appraised for the board by an appraiser approved by the board. The exclusive purpose of the appraisal is to assist the board in determining that its investment will be sufficiently secured. Any improvement existing on the land may be considered by the board in making the appraisal. If improvements are considered in determining the value of the property, the board may in accordance with §175.6(d) [ §175.6(c) ] of this title (relating to Commitment by the Board) require the purchase of an insurance policy covering fire and hazard losses.

(b) If the appraisal amount is less than the purchase price agreed upon, the veteran may cancel the transaction. The veteran must provide a written cancellation notice to the seller and the board and request that the board return the down payment and the unused portion of the fee deposits.

(c) Upon the request of the veteran, the appraiser shall meet with the veteran for a physical inspection of the land to be purchased. Except as provided in subsection (d) of this section, the board may not require that veterans accompany the appraiser. The Board may, by resolution, establish a procedure for veterans to certify they have personally inspected the tracts they are purchasing. This resolution may also provide a procedure for granting a request to permit the veteran's personal representative to inspect the tract for the veteran.

(d) If the veteran believes that the appraisal contains a mistake, the veteran may request that the land be appraised again. The board shall have the land re-appraised if all the following requirements are satisfied:

(1) The request for a re-appraisal must be in writing and describe any mistake the veteran believes was made.

(2) The written request should be accompanied by any documentation supporting the allegation that a mistake was made.

(3) The re-appraisal fee must be remitted to the board.

(4) If the board elects to perform another physical inspection of the tract in connection with the re-appraisal, the board may require that the veteran personally accompany the board's representative on that inspection.

(e) The chairman, or executive secretary, of the board may waive any of the requirements of subsection (d) of this section. The board shall be the sole and final judge regarding any matter associated with the appraisal of the land to be purchased, and the amount of the loan offered to any veteran.

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 March 31, 2003.

TRD-200302118

Larry L. Laine

Chief Clerk, Deputy Commissioner

Texas Veterans Land Board

Earliest possible date of adoption: May 11, 2003

For further information, please call: (512) 305-9129


40 TAC §175.18

The Veterans Land Board of the State of Texas (the "Board") proposes an amendment to Title 40, Part 5, Chapter 175 of the Texas Administrative Code, §175.18, relating to Resale of Forfeited Land. This amendment will allow the Board to sell forfeited or foreclosed land under either a contract for sale or a note and deed of trust.

Section 161.319 (a) of the Tex. Nat. Res. Code authorizes the Board to sell forfeited tracts under terms and conditions and at the time and in the manner prescribed by the board in its rules, the provisions of this chapter notwithstanding. Subchapter K of Chapter 161 of the Tex. Nat. Res. Code allows the board to sell land to Veterans under a mortgage. The Board finds that it is in the best interest of the program if the Board can sell forfeited or foreclosed land under either financing method. The amendments to §175.18 will allow sales of forfeited or foreclosed tracts under either a contract for sale or a note and deed of trust.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, there will be no significant fiscal implication to state or local government as a result of administering this section as amended.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, the public will benefit because the proposed amendment will give the Board the flexibility to make either type of loan to purchasers.

Mr. Oldmixon has determined that the proposed amendment will have no significant effect on small businesses during each year of the first five years the section is in effect.

Mr. Oldmixon has also determined that during each year of the first five years the proposed amendment is in effect, the anticipated economic cost to persons who are required to comply with the section will be insignificant. Persons who seek financing from the Board through the Program will pay the same fees to the Board, and costs to third parties, as previously required.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board has determined that during each year of the first five years the proposed amendment is in effect, the anticipated impact on local employment will be insignificant.

Comments may be submitted to Melinda Tracy, Legal Service, General Land Office of the State of Texas, 1700 N. Congress Avenue, Austin Texas, by no later than 30 days after publication.

The amendment to this section is proposed under the Natural Resources Code, Title 7, Chapter 161, §§161.001, 161.061, 161.063, 161.218, 161.222, 161.233, 161.283, 161.319, 161.501, 161.503, and 161,513. These sections authorize the Board to adopt rules that it considers necessary and advisable for the Land Program.

The amendment affects §§161.319, 161.501, and 161.513 of the Tex. Nat. Res. Code.

§175.18.Resale of Forfeited Land.

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

(1) Bid--A bid is an offer to purchase a Type I or Type II tract submitted in the manner prescribed by the board.

(2) Highest bidder--The person who submits the best and highest bid which satisfies all the terms, conditions, and guidelines set by the board for any sale of any tract.

(3) Minimum bid amount--The minimum acceptable selling price set by the board for each Type I and Type II tract.

(4) Type I land tract--When a tract is forfeited and first ordered for sale or lease by the board, it is automatically classified as Type I land.

(5) Type II land tract--When Type I land has been made available for sale or lease and is not sold or leased by the board for any reason, it is automatically reclassified as Type II land at the moment the board determines that no acceptable bid was received.

(b) Costs of sale.

(1) All property taxes which are, in the opinion of the board, lawfully due and owing on a Type I or Type II tract on the date it is resold by the board, may be paid from the proceeds of the issuance of bonds.

(2) All costs to the board associated with selling a Type I or Type II tract, including administrative expenses, road construction, surveying, legal fees, real estate commissions, advertising expenses, and other similar costs, may be paid from the proceeds of the issuance of bonds.

(c) Sale of forfeited tracts.

(1) Qualified purchasers.

(A) Type I tracts shall be first offered for sale or lease only to veterans who meet the eligibility requirements of §175.2 of this title (relating to Application/Eligibility). Bids on Type I tracts shall be submitted to the board on or before the bid deadline set by the board. These bids shall be reviewed by the board and the board may, in its discretion, award any Type I tract to the highest bidder.

(B) Any Type I tract not awarded by the board on the bid deadline date shall be immediately reclassified as Type II land. Type II tracts may be offered for sale or lease to both nonveterans and eligible veterans. Bids on Type II tracts may be reviewed by the chairman who may, in his or her sole discretion, award any Type II tract to the highest bidder.

(2) Terms of sale.

(A) The board may, in its sole discretion, set terms, conditions, and guidelines governing the sale of any tract.

(B) The board may combine or subdivide Type I or Type II land to form individual Type I or Type II tracts.

(C) Any tract formed by combining Type I and Type II shall be classified as Type I until it has been offered for sale or lease and is not sold or leased by the board for any reason. Thereafter, it shall be reclassified as Type II land.

(3) Deposit. Each bidder shall be required to deposit, in cash, an amount designated by the board.

(4) Duration. The land shall be sold under contract of sale and purchase or under a note and deed of trust not to exceed 30 years in duration.

(5) Additional terms and conditions. Each contract of sale and purchase or note and deed of trust shall conform to the provisions of the Natural Resources Code and shall be in such form, and contain such terms and conditions, as the chairman of the board may prescribe.

(6) Bid rejection. The board may reject any and all bids on Type I tracts. The chairman of the board may reject any and all bids on Type II tracts.

(7) Forfeiture. If a successful bidder refuses to execute a contract of sale and purchase or a note and deed of trust , the money submitted with his bid may be forfeited and shall be deposited in the state treasury and credited to the fund.

(d) Bids.

(1) Minimal amount. The board shall, in its sole discretion, set the minimum amount for which offers will be accepted for each Type I and Type II tract. Any costs to the board associated with selling a Type I or Type II tract, including road construction, surveying, advertising, legal fees, property taxes, real estate commissions, advertising expenses, and other similar costs, may be made part of the minimum bid amount.

(2) Bid deadline.

(A) The board may set a specific time and date on or before which bids pertaining to any tract must be submitted. In such event, no bid shall be awarded by the board prior to that time.

(B) The board may elect to set no specific time and date on which bids pertaining to any tract must be submitted. In such event, the chairman of the board shall be authorized to review bids when and as received, and accept the first acceptable bid on any such tract.

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 March 31, 2003.

TRD-200302117

Larry L. Laine

Chief Clerk, Deputy Commissioner

Texas Veterans Land Board

Earliest possible date of adoption: May 11, 2003

For further information, please call: (512) 305-9129


Chapter 177. VETERANS HOUSING ASSISTANCE PROGRAM

40 TAC §177.14

The Veterans Land Board of the State of Texas (the "Board") proposes an amendment to Title 40, Part 5, Chapter 177 of the Texas Administrative Code, §177.14, relating to Loan Amounts. This amendment will allow the Board to set the maximum loan amount for a home improvement loan by resolution.

Section 162.003 of the Tex. Nat. Res. Code authorizes the Board to administer and adopt rules to administer the Veterans Housing Assistance Program. Section 162.011 gives the Board the authority to set the maximum principal amount of loans. The Board finds that the present limit for home improvement loans does not match lending practices prevalent in the residential mortgage lending industry. The amendment to §177.14 will allow the board to increase the present limit for home improvement loans to match the lending industry and to make future changes by resolution.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, there will be no significant fiscal implication to state or local government as a result of administering this section as amended.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board, has determined that for each year of the first five years that the section as proposed will be in effect, the public will benefit because the proposed amendment will allow the Board to make more and larger home improvement loans to Veterans.

Mr. Oldmixon has determined that the proposed amendment may have a beneficial effect on small businesses during each year of the first five years the section is in effect. Small home improvement businesses may benefit from the change.

Mr. Oldmixon has also determined that during each year of the first five years the proposed amendment is in effect, the anticipated economic cost to persons who are required to comply with the section will be insignificant, or will be in their favor. Persons who seek financing from the Board through the Program will either pay the same fees to the Board, and costs to third parties, as previously required, or may pay less to third parties.

Douglas Oldmixon, Executive Secretary of the Veterans Land Board has determined that during each year of the first five years the proposed amendment is in effect, the anticipated impact on local employment will be insignificant.

Comments may be submitted to Melinda Tracy, Legal Service, General Land Office of the State of Texas, 1700 N. Congress Avenue, Austin Texas, by no later than 30 days after publication.

The amendment to this section is proposed under the Natural Resources Code, Title 7, Chapter 162, §§162.001, 162.003, and 162.011. These sections authorize the Board to adopt rules that it considers necessary and advisable for the Land Program.

The proposed amendment affects §§162.003 & 162.011 of the Tex. Nat. Res. Code.

§177.14.Loan Amounts.

The maximum amount that an individual will be able to borrow under this chapter will be established by resolution of the board, from time to time. Provided however, the maximum loan amount may not exceed the maximum allowable loan amount under the United States Department of Veterans Affairs Home Loan Guaranty Program. In the case of a home improvement loan, the board shall establish the maximum loan amount by resolution. [ may not exceed the maximum amount allowable under Hud-Title 1 guidelines for home improvement loans. ]

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 March 31, 2003.

TRD-200302116

Larry L. Laine

Chief Clerk, Deputy Commissioner

Texas Veterans Land Board

Earliest possible date of adoption: May 11, 2003

For further information, please call: (512) 305-9129


Part 11. TEXAS COMMISSION ON HUMAN RIGHTS

Chapter 327. ADMINISTRATIVE REVIEW

Subchapter A. ADMINISTRATIVE INVESTIGATION AND REVIEW

40 TAC §§327.1, 327.3 - 327.6

The Commissioners of the Texas Commission on Human Rights (TCHR) propose the amendments of §§327.1, concerning Filing a Complaint, 327.3, concerning Subpoena, 327.4, concerning Dismissal of Complaint, 327.5, concerning Reasonable Cause Determination, and 327.6, concerning Conciliation. These amendments are necessary to comport with a legislative mandate requiring the reduction of agency spending of its General Revenue Appropriation. Through a reduction in other operating expenses, specifically postage, the TCHR will be able to reduce its spending without a reduction in services to the citizens of the state of Texas. Section 327.1 deletes the requirement that the TCHR provide the respondent with a copy of the perfected complaint via registered or certified mail, return receipt requested. Section 327.3 deletes the requirement that the TCHR provide proper persons and entities served with a subpoena and petition with notice via registered or certified mail, return receipt requested. Section 327.4 deletes the requirement that the TCHR provide the complainant, respondent, and other agencies with a copy of the letter of determination via registered or certified mail, return receipt requested. Also, the TCHR will no longer be required to notify the respondent of the complainant's right to file a civil action against the respondent via registered or certified mail, return receipt requested. Section 327.5 deletes the requirement that the TCHR provide the complainant, respondent and other agencies with a copy of the letter of determination of reasonable cause via registered or certified mail, return receipt requested. Section 327.6 deletes the requirement that the TCHR notify the complainant and the respondent in writing of the commission's inability to successfully negotiate a conciliation agreement via registered or certified mail, return receipt requested. Also, the TCHR will no longer be required to notify the respondent of the complainant's right to file a civil action against the respondent via registered mail or certified mail, return receipt requested.

J.D. Powell, Executive Director has determined that for each year of the first five years the amended rules are in effect, there will be no fiscal impact on state and local government as a result of enforcing and administering the amended rule. There will be no adverse effects on local employment or the local economy.

Mr. Powell has also determined that for the first five year period the amended rules are in effect the public benefit will be a reduction of agency spending of its General Revenue appropriation. There will be no economic cost nor adverse impact on small businesses as a result of the amended rules. The requirements of the amended rules should not be waived.

Comments on the proposed amendments must be submitted within 30 days after the publication of the proposed section in the Texas Register to Katherine A. Antwi, General Counsel, Mail Code 344, Texas Commission on Human Rights, P.O. Box 13006, Austin, Texas, 78711, or kantwi@tchr.state.tx.us . Any requests for a public hearing must be submitted separately to the General Counsel.

These rules are amended under the Texas Labor Code, Chapter 21, Section 21.003, and Texas Administrative Code, Chapter 321, Section 321.4 and Chapter 323, Section 323.5. The Texas Labor Code, Section 21.003, and the Texas Administrative Code, Sections 321.4 and 323.5, grant the Commission authority to adopt procedural rules to carry out the purposes and policies of Texas Commission on Human Rights Act.

No other code, article, or statute is affected by these amendments.

§327.1.Filing a Complaint.

(a)-(h) (No change.)

(i) Within ten days after the receipt of the perfected complaint, the executive director or his or her designee shall serve the respondent with a copy of the complaint by regular mail [ registered or certified mail, return receipt requested ]. If a perfected complaint is not received by the commission within 180 days of the alleged unlawful employment practice, the commission shall notify the respondent that a complaint has been filed and that the process of perfecting the complaint is in progress.

(j)-(k) (No change.)

§327.3.Subpoena.

(a)-(b) (No change.)

(c) Notwithstanding the requirements of any other state law, any person served with a subpoena issued by the commission who intends not to comply therewith shall petition in writing the commission to revoke or modify the subpoena within five working days after receipt of the subpoena. Such petition shall separately identify each portion of the subpoena with which the petitioner does not intend to comply, and shall state, with respect to each such portion, the grounds upon which the petitioner relies. A copy of the subpoena shall be attached. The commission or its designee shall review the petition and make a final determination on revoking or modifying the subpoena. The commission or its designee shall serve a copy of the final determination of the petition upon the petitioner by regular mail [ registered or certified mail, return receipt requested ].

(d) (No change.)

§327.4.Dismissal of Complaint.

(a) (No change.)

(b) Where the executive director or his or her designee after an investigation has determined that there is no reasonable cause to believe that the respondent has engaged in an unlawful employment practice as alleged in the complaint, the executive director or his or her designee shall dismiss the complaint. The executive director or his or her designee shall issue a written determination in the form of a letter of determination incorporating the finding that the evidence does not support the complaint and shall serve a copy of the letter of determination on the complainant, the respondent, and other agencies as required by law and by regular mail [ registered or certified mail, return receipt requested ].

(c)-(f) (No change.)

(g) Where the commission dismisses a complaint filed with it, the commission shall so notify in writing the complainant and the respondent by regular mail [ registered or certified mail, return receipt requested ]. Such notification shall inform the complainant , via certified mail, of his or her right to file a civil action against the respondent named in the complaint pursuant to the Texas Labor Code, §21.208 and §21.252. The commission shall delegate authority to issue such notifications to the executive director or his or her designee.

§327.5.Reasonable Cause Determination.

(a)-(c) (No change.)

(d) The Executive Director shall serve a copy of the letter of determination to the complainant and respondent and other agencies as required by law by regular mail [ registered or certified mail, return receipt requested ].

§327.6.Conciliation.

(a)-(f) (No change.)

(g) Where the commission has not successfully negotiated a conciliation agreement between the respondent and complainant, the commission shall so notify in writing the complainant and respondent by regular mail [ registered or certified mail, return receipt requested ]. Such notification shall inform the complainant , via certified mail, of his or her right to file a civil action against the respondent named in the complaint pursuant to the Texas Labor Code, §§21.208 - 21.252. The executive director is authorized to issue this notification on behalf of the commission.

(h) (No change.)

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 March 26, 2003.

TRD-200302028

Katherine A. Antwi

General Counsel

Texas Commission on Human Rights

Earliest possible date of adoption: May 11, 2003

For further information, please call: (512) 437-3458


Chapter 340. ADMINISTRATIVE ENFORCEMENT

40 TAC §§340.8, 340.9, 340.15

The Commissioners of the Texas Commission on Human Rights (TCHR) propose the amendments of §§340.8, concerning Service of Notice on Aggrieved Persons, 340.9, concerning Notification of Respondent and Joinder of Additional or Substitute Respondents, and 340.15, concerning Completion of Investigation. These amendments are necessary to comport with a legislative mandate requiring the reduction of agency spending of its General Revenue Appropriation. Through a reduction in other operating expenses, specifically postage, the TCHR will be able to reduce its spending without a reduction in services to the citizens of the state of Texas. Section 340.8 deletes the requirement that the TCHR notify each aggrieved person on whose behalf the complaint was filed notice via certified mail or personal service. Section 340.9 deletes the requirement that the TCHR notify each respondent of the filing of a complaint or the filing of an amended complaint via certified mail or personal service. Section 340.15 deletes the requirement that the TCHR notify the aggrieved person and the respondent as to why an investigation was not completed within 100 days of the filing of the complaint via certified mail or personal service.

J.D. Powell, Executive Director has determined that for each year of the first five years the amended rules are in effect, there will be no fiscal impact on state and local government as a result of enforcing and administering the amended rule. There will be no adverse effects on local employment or the local economy.

Mr. Powell has also determined that for the first five year period the amended rules are in effect the public benefit will be a reduction of agency spending of its General Revenue appropriation. There will be no economic cost nor adverse impact on small businesses as a result of the amended rules. The requirements of the amended rules should not be waived.

Comments on the proposed amendments must be submitted within 30 days after the publication of the proposed section in the Texas Register to Katherine A. Antwi, General Counsel, Mail Code 344, Texas Commission on Human Rights, P.O. Box 13006, Austin, Texas, 78711, or kantwi@tchr.state.tx.us . Any requests for a public hearing must be submitted separately to the General Counsel.

These rules are amended under the Texas Property Code, Chapter 301, Section 301.062, and 40 Texas Administrative Code Chapter 336, Section 336.1 and Chapter 335, Section 335.4. Under the Texas Property Code, Section 301.062, the Commission may adopt rules as necessary to implement the Texas Fair Housing Act. The Texas Administrative Code Title 40, Sections 335.4 and 336.1, provide that the Commission may adopt rules and regulations to execute the duties and functions of the Texas Commission on Human Rights.

No other code, article, or statute is affected by these amendments.

§340.8.Service of Notice on Aggrieved Person.

Upon the filing of a complaint, the executive director or his or her designee will notify, by regular mail [ certified mail or personal service ], each aggrieved person on whose behalf the complaint was filed. The notice will:

(1)-(5) (No change.)

§340.9.Notification of Respondent and Joinder of Additional or Substitute Respondents.

(a) Within 20 days of the filing of a complaint or the filing of an amended complaint under this chapter, the executive director or his or her designee will serve a notice on each respondent by regular mail [ certified mail or personal service ]. A person who is not named as a respondent in a complaint, but who is identified in the course of the investigation under the Texas Fair Housing Act, Subchapter E, and this chapter, as a person who is alleged to be engaged, to have engaged, or to be about to engage in the discriminatory housing practice upon which the complaint is based may be joined as an additional or substitute respondent by service of a notice on the person under this section within 10 days of the identification.

(b) (No change.)

§340.15.Completion of Investigation.

(a)-(b) (No change.)

(c) If the executive director is unable to complete the investigation within the 100-day period or dispose of all administrative proceedings related to the investigation within one year after the date the complaint is filed, the executive director will notify the aggrieved person and the respondent, by regular mail [ certified mail or personal service ], of the reasons for the delay.

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 March 26, 2003.

TRD-200302029

Katherine A. Antwi

General Counsel

Texas Commission on Human Rights

Earliest possible date of adoption: May 11, 2003

For further information, please call: (512) 437-3458


Part 19. TEXAS DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES

Chapter 702. GENERAL ADMINISTRATION

Subchapter E. MEMORANDUM OF UNDERSTANDING WITH OTHER STATE AGENCIES

40 TAC §702.421

The Texas Department of Protective and Regulatory Services (PRS) proposes new §702.421, concerning relocation pilot program, in its General Administration chapter. In the last legislative session, Senate Bill 367 amended the Human Resources Code by adding §22.037, which authorizes the development of a pilot program for community- based alternatives for persons with disabilities, and §22.038, which requires a Memorandum of Understanding (MOU) regarding the implementation of the pilot program. Each of the agencies involved, PRS, the Texas Department of Human Services (DHS) and the Texas Department of Mental Health and Mental Retardation (MHMR), are required to adopt the MOU. PRS has actively been involved in the development of the MOU. DHS and MHMR have adopted the MOU as a final rule. The purpose of this proposal is to adopt by reference the rule containing the DHS MOU.

Donna Krueger, Budget and Federal Funds Director, has determined that for the first five-year period the proposed section will be in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Ms. Krueger 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 that the clients of each of the agencies involved in the MOU will know which services of the pilot program will be provided by each agency. It is anticipated that the interagency cooperation will result in better services to clients served jointly by the three agencies. There will be no effect on large, small, or micro-businesses because the interagency cooperation will affect only those agencies involved and their clients. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of the proposal may be directed to Larry Burgess at (512) 438-5320 in PRS's Child Protective Services Division. Written comments on the proposal may be submitted to Texas Register Liaison, Legal Services-244, Texas Department of Protective and Regulatory Services E-611, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to this rule. Accordingly, the department is not required to complete a takings impact assessment regarding this rule.

The new section is proposed under the Human Resources Code, §40.029, which authorizes the department to adopt rules that facilitate the implementation of departmental programs,

The new section implements the Human Resources Code, §22.037 and §22.038.

§702.421.Relocation Pilot Program.

The Texas Department of Protective and Regulatory Services (PRS), the Texas Department of Human Services (DHS) and the Texas Department of Mental Health and Mental Retardation (MHMR) are required to enter into a Memorandum of Understanding (MOU) regarding the implementation of a pilot program for community-based alternatives for persons with disabilities, as provided under Human Resources Code (HRC), §22.037 and §22.038. PRS adopts by reference the DHS rule at 40 TAC §72.104 (relating to Relocation Pilot Program), which contains the terms of the MOU for the pilot program. The MOU provides for interagency coordination and addresses the responsibilities of each agency in implementing the components of the pilot program.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 28, 2003.

TRD-200302093

C. Ed Davis

Deputy Director, Legal Services

Texas Department of Protective and Regulatory Services

Proposed date of adoption: May 23, 2003

For further information, please call: (512) 438-3437