TITLE 10.COMMUNITY DEVELOPMENT

Part 5. OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM DIVISION

Chapter 170. REVENUE BONDS FOR DEVELOPMENT OF EMPLOYMENT--INDUSTRIAL AND HEALTH RESOURCES

Subchapter A. GENERAL RULES

10 TAC §§170.1 - 170.6

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 170, Subchapter A, §§170.1 - 170.6, concerning General Rules, setting forth rules for Revenue Bonds for Development of Employment--Industrial and Health Resources.

The repeal of the rules is proposed because much of the information contained in the rules is out of date and the program is not currently active. Repealing the rules will allow for the development of a new program and the adoption of new rules in the future.

Michael Chrobak, Chief Financial Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Mr. Chrobak has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of financial programs available from the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Theresia Goetz, Manager, Development Incentives, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Goetz within 30 days of publication to tgoetz@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 1433, is affected by the proposed repeal.

§170.1.Adoption of Rules.

§170.2.Amendment of Rules.

§170.3.Filing Fees.

§170.4.Commission Address.

§170.5.Definitions.

§170.6.Payment of Obligations.

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 June 9, 2004.

TRD-200403802

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Subchapter B. INDUSTRIAL PROJECTS

10 TAC §§170.21 - 170.25

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 170, Subchapter B, §§170.21 - 170.25, concerning Industrial Projects, setting forth rules for Revenue Bonds for Development of Employment--Industrial and Health Resources.

The repeal of the rules is proposed because the program is not currently active. Repealing the rules will allow for the development of a new program and the adoption of new rules in the future.

Michael Chrobak, Chief Financial Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Mr. Chrobak has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of financial programs available from the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Theresia Goetz, Manager, Development Incentives, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Goetz within 30 days of publication to tgoetz@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 1433, is affected by the proposed repeal.

§170.21.Industrial Bond Project.

§170.22.Preliminary Application.

§170.23.Application for Final Approval.

§170.24.Minimum Required Provisions for Lease Agreement.

§170.25.Alleviation of Unemployment.

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 June 9, 2004.

TRD-200403803

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Subchapter C. MEDICAL PROJECT

10 TAC §§170.31 - 170.35

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 170, Subchapter C, §§170.31 - 170.35, concerning Medical Project, setting forth rules for Revenue Bonds for Development of Employment--Industrial and Health Resources.

The repeal of the rules is proposed because the program is not currently active. Repealing the rules will allow for the development of a new program and the adoption of new rules in the future.

Michael Chrobak, Chief Financial Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Mr. Chrobak has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of financial programs available from the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Theresia Goetz, Manager, Development Incentives, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Goetz within 30 days of publication to tgoetz@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 1433, is affected by the proposed repeal.

§170.31.Medical Bond Project.

§170.32.Preliminary Application.

§170.33.Application for Final Approval.

§170.34.Minimum Requirements for Lease Agreements.

§170.35.Promotion of Public Health, Medical Care, or Medical Research.

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 June 9, 2004.

TRD-200403804

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Chapter 172. TEXAS RURAL ECONOMIC DEVELOPMENT PROGRAM

10 TAC §§172.1 - 172.10

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 172, §§172.1 - 172.10, setting forth rules for the Texas Rural Economic Development Program.

The repeal of the rules is proposed because the authority for the program was repealed by Senate Bill 932 of the 75th Texas Legislature, effective September 1, 1997, and there are no longer any loans outstanding under the program.

Michael Chrobak, Chief Financial Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Mr. Chrobak has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of financial programs available from the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Theresia Goetz, Manager, Development Incentives, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Goetz within 30 days of publication to tgoetz@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 481, is affected by the proposed repeal.

§172.1.General Provisions.

§172.2.Texas Rural Economic Development Fund.

§172.3.Eligibility Requirements.

§172.4.Filing Requirements and Consideration of Applications.

§172.5.Contents of Application.

§172.6.General Terms and Conditions of Department's Financial Commitment.

§172.7.Criteria for Approval of Loan Guaranty.

§172.8.Loan Administration.

§172.9.Loan Review Committee.

§172.10.Eligible Lenders.

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 June 9, 2004.

TRD-200403805

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Chapter 185. RULES FOR TEXAS SMALL BUSINESS INDUSTRIAL DEVELOPMENT CORPORATION REVENUE BOND PROGRAMS

10 TAC §§185.1 - 185.7

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 185, §§185.1 - 185.7, setting forth Rules for the Texas Small Business Industrial Development Corporation Revenue Bond Programs.

The repeal of the rules is proposed because the program is not currently active. Repealing the rules will allow for the development of a new program and the adoption of new rules in the future.

Michael Chrobak, Chief Financial Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Mr. Chrobak has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of financial programs available from the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Theresia Goetz, Manager, Development Incentives, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Goetz within 30 days of publication to tgoetz@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 1433, is affected by the proposed repeal.

§185.1.Scope.

§185.2.Definitions.

§185.3.Bonds.

§185.4.Projects.

§185.5.Loans.

§185.6.Fees and Charges.

§185.7.Amendments.

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 June 9, 2004.

TRD-200403806

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Chapter 190. PROCEDURES OF THE BOARD

10 TAC §§190.1 - 190.7

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 190, §§190.1 - 190.7, setting forth rules of Procedures of the Board.

The repeal of the rules is proposed because the governing board of the Texas Department of Economic Development was abolished by Senate Bill 275 of the 78th Texas Legislature, effective September 1, 2003. The functions of the agency have been transferred to the Governor's Office. New board members are not authorized by statute and will not be appointed.

Tracye McDaniel, Chief Operating Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Ms. McDaniel has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of the structure and management of the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Linda Payne, Executive Assistant, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Payne within 30 days of publication to lpayne@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 481, is affected by the proposed repeal.

§190.1.Definitions.

§190.2.Officers.

§190.3.Ex Officio Duties; Officers.

§190.4.Committees.

§190.5.Personnel.

§190.6.Meetings.

§190.7.Communication and Complaints; Access to Department Programs.

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 June 9, 2004.

TRD-200403807

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Chapter 195. MEMORANDA OF UNDERSTANDING

10 TAC §§195.1 - 195.12

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 195, §§195.1 - 195.12, relating to Memoranda of Understanding.

The repeal of the rules is proposed because Senate Bill 275 of the 78th Texas Legislature, effective September 1, 2003, repealed Texas Government Code, §481.028, which directed the Texas Department of Economic Development to enter into memoranda of understanding with other state agencies and to adopt the memoranda of understanding as a rule.

Tracye McDaniel, Chief Operating Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Ms. McDaniel has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of the functions of the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Linda Payne, Executive Assistant, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Payne within 30 days of publication to lpayne@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 481, is affected by the proposed repeal.

§195.1.Memorandum of Understanding with the Texas Department of Agriculture.

§195.2.Memorandum of Understanding with the Texas Workforce Commission.

§195.3.Memorandum of Understanding with the Texas General Land Office.

§195.4.Memorandum of Understanding with the Texas Department of Housing and Community Affairs.

§195.5.Memorandum of Understanding with the Comptroller of Public Accounts.

§195.6.Memorandum of Understanding with the Texas Department of Transportation, the Texas Parks & Wildlife Department, the Texas Commission on the Arts, and the Texas Historical Commission.

§195.7.Memorandum of Understanding with the Texas Natural Resource Conservation Commission.

§195.8.Memorandum of Understanding with the Texas Historical Commission.

§195.9.Memorandum of Understanding with the General Services Commission.

§195.10.Memorandum of Understanding with the Texas Alternative Fuels Council.

§195.11.Memorandum of Understanding with the Texas Agricultural Finance Authority.

§195.12.Memorandum of Understanding with the Health and Human Services Commission.

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 June 9, 2004.

TRD-200403808

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Chapter 196. ADVISORY COMMITTEES

10 TAC §§196.1 - 196.8

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 196, §§196.1 - 196.8, setting forth rules for Advisory Committees.

The repeal of the rules is proposed because Senate Bill 275 of the 78th Texas Legislature, effective September 1, 2003, repealed Texas Government Code, §481.007, which authorized the Texas Department of Economic Development to appoint advisory committees.

Tracye McDaniel, Chief Operating Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Ms. McDaniel has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of the structure and management of the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Linda Payne, Executive Assistant, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Payne within 30 days of publication to lpayne@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 481, is affected by the proposed repeal.

§196.1.Applicability and Purpose.

§196.2.Creation and Dissolution of Advisory Committees.

§196.3.Rules and Procedures.

§196.4.Composition.

§196.5.Officers.

§196.6.Reimbursement of Members' Expenses.

§196.7.Reporting Requirements.

§196.8.Evaluation of Committee Costs and Effectiveness.

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 June 9, 2004.

TRD-200403809

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Chapter 200. ADMINISTRATION

10 TAC §200.1, §200.11

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the Office of the Governor, Economic Development and Tourism Division or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Office of the Governor, Economic Development and Tourism Division (Division), formerly the Texas Department of Economic Development, proposes the repeal of Chapter 200, §200.1 and §200.11, setting forth rules for Administration.

The repeal of the rules is proposed because Senate Bill 275 of the 78th Texas Legislature, effective September 1, 2003, abolished the Texas Department of Economic Development and transferred its functions to the Office of the Governor. Chapter 200, relating to administration, adopted rules for procurement and contract dispute resolution that were required for state agencies. Since the Division is no longer a separate state agency, the rules are no longer needed.

Tracye McDaniel, Chief Operating Officer of the Division, has determined that for the first five-year period that the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Ms. McDaniel has also determined that each year of the first five years that the repeal is in effect, the public will benefit from a better understanding of the structure and management of the Division. There will be no effect on small businesses. There is no anticipated economic cost to persons, and no private property rights are affected by the repeal.

Comments on the proposed repeal may be submitted within 30 days of the publication of this notice in the Texas Register to Linda Payne, Executive Assistant, Office of the Governor, Economic Development and Tourism Division, 1700 North Congress Avenue, 2nd Floor, Austin, Texas 78701 or P.O. Box 12428, Austin, Texas 78711-2428. Comments may be e-mailed to Ms. Payne within 30 days of publication to lpayne@governor.state.tx.us.

The repeal is proposed under the Texas Government Code, §481.005(d), which authorizes the director of the Division to adopt rules for programs administered by the Division, and Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies.

Texas Government Code, Chapter 481, is affected by the proposed repeal.

§200.1.Historically Underutilized Businesses.

§200.11.Contracts Negotiation, Mediation, and Other Assisted Negotiation and Mediation Processes.

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 June 9, 2004.

TRD-200403810

Jeff Moseley

Chief Executive Officer

Office of the Governor, Economic Development and Tourism Division

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-0181


Part 6. OFFICE OF RURAL COMMUNITY AFFAIRS

Chapter 257. EXECUTIVE COMMITTEE FOR OFFICE OF RURAL COMMUNITY AFFAIRS

Subchapter J. DESIGNATION OF A HOSPITAL AS A RURAL HOSPITAL

10 TAC §257.705

The Office of Rural Community Affairs (Office) proposes an amendment to §257.705 to revise the criteria for hospitals eligible to be designated as Critical Access Hospitals (CAH).

To be considered for the CAH status, a hospital must be located in a non-metropolitan statistical area (non-MSA) county, as defined by the federal Office of Management and Budget (OMB). Federal law permits certain urban hospitals to be treated as rural for the purpose of receiving certain Medicare program benefits, including CAH status, if they meet certain criteria by the state. The State of Texas has the ability, under this program, to revise its definition of rural to include four hospitals which are now considered to be in urban areas and thus not eligible for CAH designation.

The proposed revision to §257.705 will add additional areas to the state that will be considered to be rural and thus make some hospitals eligible for CAH designation that were previously ineligible.

Robt. J. "Sam" Tessen, Executive Director, has determined that for the first five-year period the rule revision is in effect there will be no fiscal implications for state or local government as a result of administering the rule.

Mr. Tessen has also determined that for each year of the first five years the section is in effect the public benefit will be to help assure the continued access of hospital care services to the rural communities of Texas. There will not be an effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed rule.

Comments on the proposal may be submitted in writing to J. Randel (Jerry) Hill, General Counsel, at P.O. Box 12877, Austin, Texas 78711. Comments may also be submitted electronically to jhill@orca.state.tx.us or faxed to (512) 936-6776. Comments will be accepted for 30 days following the date of publication of this proposal in the Texas Register . All requests for a public hearing on the proposed rule revision submitted under the Administrative Procedure Act must be received by the General Counsel not more than 15 calendar days after notice of a proposed change in the rule has been published in the Texas Register .

The amendment is proposed under the authority of Chapter 487 §487.052 of the Texas Government Code which Authorizes the Executive Committee to adopt rules to implement the provisions of this Chapter.

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

§257.705.Designation Criteria.

(a) (No change.)

(b) The hospital must be located in:

(1) a county with a population density of less than 225 persons per square mile of land area; and

(2) a municipality of 15,000 [ 10,000 ] persons or less.

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 June 8, 2004.

TRD-200403722

Robt. J. "Sam" Tessen

Executive Director

Office of Rural Community Affairs

Earliest possible date of adoption: July 25, 2004

For further information, please call: (512) 936-6710