TITLE 25.HEALTH SERVICES

Part 1. DEPARTMENT OF STATE HEALTH SERVICES

Chapter 133. HOSPITAL LICENSING

Subchapter B. HOSPITAL LICENSE

25 TAC §133.26

The Executive Commissioner of the Health and Human Services Commission (commission), on behalf of the Department of State Health Services (department), adopts an amendment to §133.26, concerning hospital licensing fees with changes to the proposed text as published in the October 21, 2005, issue of the Texas Register (30 TexReg 6905).

BACKGROUND AND PURPOSE

The Texas Legislature passed the General Appropriations Act, Senate Bill 1, 79th Legislature, Regular Session (2005). Article II, Rider 85, makes a portion of the appropriation contingent upon collection of fees above the Comptroller of Public Accounts' Biennial Revenue estimate. To meet these requirements, a cost recovery fee is included in this amendment.

The Hospital Licensing Program was evaluated to determine the level of increase in fees based on the following criteria: the date of the last fee increase for the specific program area; the percentage of revenue above costs for the specific program; the cost of licenses compared to other similar licenses; and the value added analysis of the license. Additional costs of administration and enforcement of the program, due to a recent legislative increase in pay, longevity pay, and travel reimbursement, were also factored in to determine the direct and indirect costs of the program.

SECTION-BY-SECTION SUMMARY

Amendments to §133.26 contain increases in hospital licensing fees for initial and renewal applications based on the number of licensed beds, as well as for certain types of architectural plan reviews, and include clarification of the language related to application requirements. Specifically, §133.26(b)(1) increases the fee for initial and renewal license applications by $19 per bed; §133.26(b)(1)(A) clarifies beds which must be included in the fee calculation; §133.26(b)(2) requires that the applicant submit the $39 per bed fee when adding a multiple location hospital to the license; §133.26(c)(5) increases the fee per square foot by $100 for architectural plan reviews when the applicant is unable to establish an estimated construction cost; and §133.26(f) adds language authorizing the collection of subscription and convenience fees to recover costs for application processing through the Texas Online authority.

COMMENTS

The department, on behalf of the commission, has reviewed and prepared responses to the comments received regarding the proposed rule during the comment period, which the commission has reviewed and accepts. The commenter was the Texas Hospital Association. The commenter was not against the rules in their entirety.

Comment: One commenter had requested and received an explanation for the increase in fees. The commenter stated that any fee increase should be supported solely by the costs associated with increased regulatory oversight.

Response: The commission disagrees because the level of the increase in fees was based on the criteria listed in the Background and Purpose section of this preamble. No change was made to the rule as a result of this comment.

The department staff on behalf of the commission provided comments and the commission has reviewed and agrees to the following changes to improve the accuracy of the section.

Change: Concerning §133.26(b)(1)(A), the words "and surgical suites" have been deleted as it is not a type of bed and have been replaced with "intermediate care beds, universal care beds, antepartum beds and postpartum beds".

LEGAL CERTIFICATION

The Department of State Health Services General Counsel, Cathy Campbell, certifies that the adopted rule has been reviewed by legal counsel and found to be within the state agencies' authority to adopt.

STATUTORY AUTHORITY

The adopted amendment to §133.26 is authorized by Health and Safety Code, §§12.0111 and 241.025, which require the department to charge fees for issuing or renewing a license; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

§133.26.Fees.

(a) General.

(1) All fees paid to the Department of State Health Services (department) are nonrefundable with the exception of inspection fees for inspections that were not conducted.

(2) All fees shall be paid by check or money order made payable to the Department of State Health Services.

(b) License fees.

(1) The fee for an initial license or a renewal license is $39 per bed based upon the design bed capacity of the hospital. The design bed capacity of a hospital is determined as follows.

(A) The design bed capacity is the maximum number of patient beds that a hospital can accommodate in rooms that comply with the requirements for patient room suites in §133.163 of this title (relating to Spatial Requirements for New Construction) including beds, bassinets or cribs in critical care units (including neonatal nurseries), continuing care nursery beds, hospital-based skilled nursing units, medical nursing units, mental health and chemical dependency nursing units, pediatric and adolescent nursing units, obstetrical suites (including labor/delivery/recovery/postpartum (LDRP) beds), intermediate care beds, universal care beds, antepartum beds and postpartum beds. The design bed capacity does not include labor/delivery/recovery (LDR) beds, newborn nursery bassinets, or recovery beds.

(B) The maximum design bed capacity includes beds that comply with the requirements in §133.163 of this title even if the beds are unoccupied or the space is used for other purposes such as offices or storage rooms, provided such rooms can readily be returned to patient use. All required support and service areas must be maintained in place. For example, the removal of a nurse station in an unused patient bedroom wing of 20 beds would effectively eliminate those 20 beds from the design capacity. Eliminating access to the medical gas outlets and nurse call would also remove bed(s) from the design capacity.

(C) The number of licensed beds in a multiple occupancy room shall be determined by the design even if the number of beds actually placed in the room is less than the design capacity.

(2) hospital shall submit a license fee for each design bed added as a result of adding a multiple location hospital to its license. The fee is $39 per bed, regardless of the number of months remaining in the license period.

(3) A hospital shall submit an additional license fee with the Final Construction Approval form for each new design bed resulting from an approved construction project. The fee is $39 per bed, regardless of the number of months remaining in the license period. The hospital shall also submit an additional plan review fee if the construction cost increases to the next higher fee schedule according to subsection (c)(4) of this section.

(4) A hospital will not receive a refund of previously submitted fees should the hospital's design capacity decrease as a result of an approved construction project.

(c) Plan review fees. This subsection outlines the fees which must accompany the application for plan review and all proposed plans and specifications covering the construction of new buildings or alterations to existing buildings which must be submitted for review and approval by the department in accordance with §133.167 of this title (relating to Preparation, Submittal, Review and Approval of Plans).

(1) Construction plans will not be reviewed or approved until the required fee and an application for plan review are received by the department.

(2) Plan review fees are based upon the estimated construction project costs which are the total expenditures required for a proposed project from initiation to completion, including at least the following items.

(A) Construction project costs shall include expenditures for physical assets such as:

(i) site acquisition;

(ii) soil tests and site preparation;

(iii) construction and improvements required as a result of the project;

(iv) building, structure, or office space acquisition;

(v) renovation;

(vi) fixed equipment; and

(vii) energy provisions and alternatives.

(B) Construction project costs shall include expenditures for professional services including:

(i) planning consultants;

(ii) architectural fees;

(iii) fees for cost estimation;

(iv) legal fees;

(v) management fees; and

(vi) feasibility study.

(C) Construction project costs shall include expenditures or costs associated with financing, excluding long-term interest, but including:

(i) financial advisor;

(ii) fund-raising expenses;

(iii) lender's or investment banker's fee; and

(iv) interest on interim financing.

(D) Construction project costs shall include expenditure allowances for contingencies including:

(i) inflation;

(ii) inaccurate estimates;

(iii) unforeseen fluctuations in the money market; and

(iv) other unforeseen expenditures.

(3) Regarding purchases, donations, gifts, transfers, and other comparable arrangements whereby the acquisition is to be made for no consideration or at less than the fair market value, the project cost shall be determined by the fair market value of the item to be acquired as a result of the purchase, donation, gift, transfer, or other comparable arrangement.

(4) The plan review fee schedule based on cost of construction is:

(A) $100,000 or less: $300;

(B) $100,001 to $600,000: $850;

(C) $600,001 to 2,000,000: $2,000;

(D) $2,000,001 to 5,000,000: $3,000;

(E) $5,000,001 to 10,000,000: $4,000; and

(F) $10,000,001 and over: $5,000.

(5) If an estimated construction cost cannot be established, the estimated cost shall be based on $225 per square foot. No construction project shall be increased in size, scope, or cost unless the appropriate fees are submitted with the proposed changes.

(d) Construction inspection fees. A fee of $500 and an application for construction inspection for each inspection shall be submitted to the department at least three weeks prior to the anticipated inspection date. Construction inspections will not be conducted until all required fees are received by the department. If additional construction inspections of the proposed project are requested by the hospital, the appropriate additional fees shall be submitted prior to any inspections conducted by the staff of the department. When followup construction inspections are performed to verify plans of correction, the fee shall be submitted upon completion of the inspection.

(e) Cooperative agreement application fee. The application fee for a cooperative agreement is $10,000. The application fee shall be submitted with an application for a cooperative agreement and other documents in accordance with §133.62 of this title (relating to Cooperative Agreements).

(f) Subscription and convenience fee. The department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online, in accordance with Texas Government Code, §2054.111.

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 January 10, 2006.

TRD-200600137

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Chapter 143. MEDICAL RADIOLOGIC TECHNOLOGISTS

25 TAC §143.4

The Executive Commissioner of the Health and Human Services Commission (commission), on behalf of the Department of State Health Services (department), adopts an amendment to §143.4, concerning medical radiologic technologists fees without changes to the proposed text as published in the October 21, 2005, issue of the Texas Register (30 TexReg 6908), and the section will not be republished.

BACKGROUND AND PURPOSE

The Texas Legislature passed the General Appropriations Act, Senate Bill 1, 79th Legislature, Regular Session (2005). Article II, Rider 85, makes a portion of the appropriation contingent upon collection of fees above the Comptroller of Public Accounts' Biennial Revenue estimate. To meet these requirements, a cost recovery fee is included in this amendment.

The Medical Radiologic Technologists Certification Program was evaluated to determine the level of increase in fees based on the following criteria: the date of the last fee increase for the specific program area; and the cost of licenses compared to other similar licenses. Additional costs of administration and enforcement of the program, due to a recent legislative increase in pay, longevity pay, and travel reimbursement, were also factored in to determine the direct and indirect costs of each program.

SECTION-BY-SECTION SUMMARY

The amendment to §143.4 contains an increase in the fee assessed against licensed medical radiologic technologists for the biennial certificate renewal. Specifically, §143.4(b)(2) increases the fee for a two-year renewal by $20.

COMMENTS

The department, on behalf of the commission, did not receive any comments regarding the proposed rule during the comment period.

LEGAL CERTIFICATION

The Department of State Health Services General Counsel, Cathy Campbell, certifies that the adopted rule has been reviewed by legal counsel and found to be within the state agencies' authority to adopt.

STATUTORY AUTHORITY

The adopted amendment to §143.4 is authorized by Health and Safety Code, §12.0111, which requires the department to charge fees for issuing or renewing a license; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

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 January 10, 2006.

TRD-200600138

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Chapter 205. PRODUCT SAFETY

The Executive Commissioner of the Health and Human Services Commission (commission), on behalf of the Department of State Health Services (department), adopts amendments to §205.11, concerning bedding fees, §205.44, concerning labeling of hazardous substances fees, and §205.57, concerning inhalant abuse fees. Section 205.11 is adopted with changes to the proposed text as published in the October 21, 2005, issue of the Texas Register (30 TexReg 6909). Sections 205.44 and 205.57 are adopted without changes, and the sections will not be republished.

BACKGROUND AND PURPOSE

The Texas Legislature passed the General Appropriations Act, Senate Bill 1, 79th Legislature, Regular Session (2005). Article II, Rider 85, makes a portion of the appropriation contingent upon collection of fees above the Comptroller of Public Accounts' Biennial Revenue estimate. To meet these requirements, cost recovery fees are included in these amendments.

Programs with regulatory authority over bedding, labeling of hazardous substances, and inhalant abuse were evaluated to determine the level of increase in fees based on the following criteria: the date of the last fee increase for the specific program area; licensee's ability to pay in comparison to average salary of professionals; the percentage of revenue above costs for the specific program; the cost of licenses compared to other similar licenses; and the value added analysis of the license. Additional costs of administration and enforcement of the program, due to a recent legislative increase in pay, longevity pay, and travel reimbursement, were also factored in to determine the direct and indirect costs of each program.

SECTION-BY-SECTION SUMMARY

Amendments to §205.11(b) contain increases in bedding permit fees assessed for a two-year term. Specifically, §205.11(b)(1)(A) increases the mattress manufacturer permit fee for less than 2,000 articles per term by $20; §205.11(b)(1)(B) increases the mattress manufacturer permit fee for 2,000 to 9,999 articles per term by $30; §205.11(b)(1)(C) increases the mattress manufacturer permit fee for 10,000 to 19,999 articles per term by $40; §205.11(b)(1)(D) increases the mattress manufacturer permit fee for 20,000 to 29,999 articles per term by $60; §205.11(b)(1)(E) increases the mattress manufacturer permit fee for 30,000 to 49,999 articles per term by $80; §205.11(b)(1)(F) increases the mattress manufacturer permit fee for 50,000 to 100,000 articles per term by $120; §205.11(b)(1)(G) increases the mattress manufacturer permit fee for over 100,000 articles per term by $120; §205.11(b)(3)(A) increases the bedding product manufacturer permit fee for less than 1,000 articles per term by $20; §205.11(b)(3)(B) changes the 2,000 to 9,999 articles per term to 1,000 to 9,999 articles per term to correct a typographical error in the current rule and also increases the bedding product manufacturer permit fee for 1,000 to 9,999 articles per term by $25; §205.11(b)(3)(C) increases the bedding product manufacturer permit fee for 10,000 to 19,999 articles per term by $30; §205.11(b)(3)(D) increases the bedding product manufacturer permit fee for 20,000 to 29,999 articles per term by $40; §205.11(b)(3)(E) increases the bedding product manufacturer permit fee for 30,000 to 49,999 articles per term by $50; §205.11(b)(3)(F) increases the bedding product manufacturer permit fee for 50,000 to 99,999 articles per term by $70; §205.11(b)(3)(G) increases the bedding product manufacturer permit fee for 100,000 to 200,000 articles per term by $120; §205.11(b)(3)(H) increases the bedding product manufacturer permit fee for over 200,000 articles per term by $120; §205.11(b)(6) increases the processor permit fee by $10; §205.11(b)(7) increases the germicidal treatment permit fee by $10; and §205.11(b)(8) increases the arts and crafts permit fee by $5. In addition, amendments to §205.11(c)(1) change the department name from "Texas Department of Health" to "Department of State Health Services" to state the new department name; and the program name from "Product Safety Division" to "Product Safety Program".

Amendments to §205.44 contain an increase in the registration fee for manufacturers of hazardous substances for a two-year term. Specifically, §205.44(f)(1) increases the two-year term fee by $60.

Amendments to §205.57 contain an increase in the inhalant abuse permit fee assessed for a two-year term. Specifically, §205.57(a) increases the two-year term fee by $5. Amendments to §205.57(b) change the department name from "Texas Department of Health or its successor" to "Department of State Health Services" to state the new department name.

COMMENTS

The department, on behalf of the commission, has reviewed and prepared responses to the comments received regarding the proposed rules during the comment period, which the commission has reviewed and accepts. The commenter was an individual. The commenter was not against the rules in their entirety; however, the commenter suggested recommendations for change as discussed in the summary of comments.

Comment: Concerning the fees in §205.11, the commenter recommended that out-of-state mattress manufacturers should pay additional fees above the requested fees to offset the added risk to Texas residents due to the inability to inspect for compliance on-site.

Response: The commission acknowledges the comment, but disagrees, as this comment may involve statutory changes in addition to the rule changes, the commission will need to study this issue. No change was made as a result of the comment.

Comment: Concerning the fees in §205.11, the commenter recommended that out-of-state mattress manufacturers should be required to have an officer of the company certify by notarized statement the approximate numbers of mattresses manufactured per reporting period.

Response: The commission acknowledges the comment, but disagrees with the commenter. The recommendation to require out-of-state mattress manufacturers to submit a notarized certification statement was considered. However, the certification statement currently found on the mattress manufacturer license application form has been reviewed and found to meet the department's requirements. No change was made as a result of this comment.

The department staff on behalf of the commission provided a comment and the commission has reviewed and agrees to the following change that will state the correct program name.

Change: Concerning §205.11(c)(1), the department changed "Product Safety Division" to "Product Safety Program" to reflect the program's name change.

LEGAL CERTIFICATION

The Department of State Health Services General Counsel, Cathy Campbell, certifies that the adopted rules have been reviewed by legal counsel and found to be within the state agencies' authority to adopt.

Subchapter A. BEDDING RULES

25 TAC §205.11

STATUTORY AUTHORITY

The adopted amendment is authorized by Health and Safety Code, §345.043, which authorizes fees for an annual and renewal permit in amounts reasonable and necessary to defray the cost of administering the program; Health and Safety Code, §501.026, which authorizes reasonable registration fees; Health and Safety Code, §12.0111, which requires the department to charge fees for issuing or renewing a license designed to recover all direct and indirect costs; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

§205.11.Permit Requirements; Types; Application; Conditions; Suspension.

(a) General requirements.

(1) A person may not manufacture, import, wholesale, distribute, or engage in the business of renovating or selling bedding in this state or for delivery in this state unless the person first obtains a permit for that specific purpose from the department. This requirement does not apply to a custom upholstery business that does not repair or renovate bedding for resale.

(2) A processor may not sell filling material in this state or for delivery in this state unless the person first obtains a permit for that purpose from the department.

(3) A person may not apply a germicidal treatment method to bedding unless the method has been registered with and approved in writing by the department and the person has been issued a germicidal treatment permit by the department.

(4) These permit requirements apply to each separate business location regardless of business name or ownership.

(5) Prior to January 1, 2005, the term of all licenses is one-year and expires on the anniversary of the effective date, unless renewed. Effective January 1, 2005, the term of all licenses is two years. Some licenses will be renewed for a one-year term in 2005, in a manner to be determined by the department and two years thereafter. The department may prorate permit fees as appropriate to provide for a common expiration date for persons holding and/or applying for more than one permit.

(6) Texas Online Fees. The department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with processing license applications specified under this subchapter through Texas Online, in accordance with the Texas Government Code, Chapter 2054, §2054.111 (relating to Use of Texas Online Project).

(b) Types of permit and permit fees.

(1) Mattress Manufacturer Permit. Required of all manufacturers of mattresses or box springs prior to shipping mattresses and/or box springs into or within this state for the purpose of resale. Permit fees are graduated based on the number of articles the manufacturer is requesting authorization to ship during the term of the permit. The fees are set out as follows:

(A) for less than 2,000 articles per term, a two-year term is $220;

(B) 2,000 to 9,999 articles per term, a two-year term is $330;

(C) 10,000 to 19,999 articles per term, a two-year term is $440;

(D) 20,000 to 29,999 articles per term, a two-year term is $660;

(E) 30,000 to 49,999 articles per term, a two-year term is $880;

(F) 50,000 to 100,000 articles per term, a two-year term is $1,320; and

(G) over 100,000 articles per term, a two-year term is $1,320 plus $.03 for each article.

(2) Mattress Renovator Permit. Required of all renovators of mattresses or box springs prior to shipping mattresses and/or box springs in or within this state for the purpose of resale. Permit fees are graduated based on the number of mattresses or box springs the renovator is requesting authorization to ship during the permit period. The fees are set out in subsection (b)(1) of this section.

(3) Bedding Product Manufacturer Permit. Required of all manufacturers of bedding products, other than mattresses and box springs, prior to shipping such articles in or within this state for the purpose of resale. Permit fees are graduated based on the number of articles the manufacturer is requesting authorization to ship during the term of the permit. The fees are set out as follows:

(A) for less than 1,000 articles per term, a two-year term is $220;

(B) 1,000 to 9,999 articles per term, a two-year term is $275;

(C) 10,000 to 19,999 articles per term, a two-year term is $330;

(D) 20,000 to 29,999 articles per term, a two-year term is $440;

(E) 30,000 to 49,999 articles per term, a two-year term is $550;

(F) 50,000 to 99,999 articles per term, a two-year term is $770;

(G) 100,000 to 200,000 articles per term, a two-year term is $1,320; and

(H) over 200,000 articles per term, a two-year term is $1,320 plus $.01 for each article.

(4) Wholesaler/Distributor Permit. Required of all wholesalers and distributors of bedding articles or filling materials prior to shipping such articles or filling materials into this state for the purpose of resale. Permit fees are graduated based on the number of articles or units of filling materials the wholesaler/distributor is requesting authorization to ship during the permit period. The fees are set out in Schedule B, subsection (b)(3) of this section.

(5) Importer Permit. Required of all importers of bedding articles or filling materials prior to shipping such articles or filling materials into this state for the purpose of resale. Permit fees are graduated based on the number of imported articles or units of filling materials the importer is requesting authorization to ship during the permit period. The fees are set out in Schedule B in subsection (b)(3) of this section.

(6) Processor Permit. Required of all manufacturers and/or processors of bulk filling materials prior to selling and shipping such filling materials into this state. The permit fee is $110 for a two-year term.

(7) Germicidal Treatment Permit. Required of all persons prior to the application of a germicidal treatment process, approved by the department, to articles of bedding and/or filling materials to be shipped into or to be sold in this state. The permit fee is $110 for a two-year term.

(8) Arts and Crafts Permit. Required of all persons who manufacture bedding articles other than mattresses (such as pillows, quilts, comforters), have no paid employees, and manufacture less than 250 articles per year for sale in this state. The permit fee is $55 for a two-year term.

(c) Permit application.

(1) Application for an initial permit or to renew an expiring permit must be made through the department on an approved application form which may be obtained from the Product Safety Program, Department of State Health Services, 1100 West 49th Street, Austin, Texas 78756.

(2) A separate application must be completed and submitted for each specific permit applied for at each specific business location or plant location.

(3) The appropriate permit fee, payable to the department, must accompany each application.

(4) Additional information that may be required by the department includes the following:

(A) copy of current permits or licenses issued by another state, or states;

(B) copy of most recent bedding inspection report if the business or plant is located in a city, county, state or country that has bedding laws and regulations and conducts inspections;

(C) copies of bedding article labels proposed for use in this state;

(D) samples of products to be shipped into this state;

(E) confirmation of compliance with applicable federal flammability standards for mattresses and mattress pads or test results from an independent testing facility acceptable to the department;

(F) explanation of the germicidal treatment method to be applied to second-hand articles of bedding; and

(G) any other information that the department may determine is necessary for the protection of the public health and safety.

(d) Permit conditions.

(1) Each person required to obtain a permit shall keep accurate and up-to-date records of all articles of bedding shipped into or within this state and such records shall be made available to authorized representatives of the department when requested. The department may require, at the expense of the person, that an independent audit of the records of the person be conducted with the results of such audit provided to the department and the person.

(2) Each person required to obtain a Germicidal Treatment Permit shall:

(A) conspicuously post the permit on the premises of the person's business near the treatment device; and

(B) keep accurate records in a bound log book describing all bedding articles or materials treated, date of treatment, method of treatment, and the name and address of the owner of each item.

(3) Each person required to obtain a permit shall provide product samples in sufficient numbers to determine compliance with these regulations when requested by the department and shall reimburse retail business establishments for samples of bedding or materials taken by authorized representatives of the department.

(4) Each person required to obtain a permit shall provide test results acceptable to the department confirming compliance with federal flammability standards for mattresses and mattress pads when requested by the department.

(5) Each person required to obtain a permit shall maintain each business location in a sanitary condition that complies with §205.9 of this title.

(6) Each person required to obtain a permit shall allow, during normal business hours, an authorized representative or representatives of the department to conduct an announced or unannounced inspection of their place of business for purposes of determining compliance with the Act and regulations and to take samples of bedding articles or materials for inspection and analysis or to be held as evidence of a violation of these regulations.

(7) Each person required to obtain a permit shall allow an authorized representative or representatives of the department to copy records and take photographs of articles of bedding or materials during inspections.

(e) Permit denial, suspension, revocation.

(1) An application for permit issuance or renewal will be denied by the department if the applicant fails or refuses to provide a complete application, pay the appropriate permit fee, provide requested information or product samples or test results, or if the business location or plant location is not in a sanitary condition in violation of the Act and regulations.

(2) An application for permit issuance or renewal may be denied by the department if the applicant has failed to make acceptable progress implementing corrective actions agreed upon by the applicant and the department to remedy previous violations of the Act or these regulations.

(3) A permit may be suspended or revoked by the department if the permit holder fails to maintain the permitted business location or plant location in a sanitary condition, manufactures or renovates and sells mattresses or mattress pads that do not comply with federal flammability standards, fails to germicidally treat articles of used bedding prior to resale, or commits any other or repeated violations of the Act or these regulations.

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 January 10, 2006.

TRD-200600141

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Subchapter C. LABELING OF HAZARDOUS SUBSTANCES

25 TAC §205.44

STATUTORY AUTHORITY

The adopted amendment is authorized by Health and Safety Code, §345.043, which authorizes fees for an annual and renewal permit in amounts reasonable and necessary to defray the cost of administering the program; Health and Safety Code, §501.026, which authorizes reasonable registration fees; Health and Safety Code, §12.0111, which requires the department to charge fees for issuing or renewing a license designed to recover all direct and indirect costs; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

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 January 10, 2006.

TRD-200600142

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Subchapter D. INHALANT ABUSE

25 TAC §205.57

STATUTORY AUTHORITY

The adopted amendment is authorized by Health and Safety Code, §345.043, which authorizes fees for an annual and renewal permit in amounts reasonable and necessary to defray the cost of administering the program; Health and Safety Code, §501.026, which authorizes reasonable registration fees; Health and Safety Code, §12.0111, which requires the department to charge fees for issuing or renewing a license designed to recover all direct and indirect costs; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

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 January 10, 2006.

TRD-200600143

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Chapter 229. FOOD AND DRUG

The Executive Commissioner of the Health and Human Services Commission (commission), on behalf of the Department of State Health Services (department), adopts amendments to §229.145 concerning the narcotic treatment program fees, §229.182 concerning food manufacturers, food wholesalers, and warehouse operators fees, §229.372 concerning permitting of retail food establishments fees, and §229.439 concerning the device distributors and device manufacturers fees. Sections 229.182 and 229.439 are adopted with changes to the proposed text as published in the October 21, 2005, issue of the Texas Register (30 TexReg 6912). Amendments to §229.145 and §229.372 are adopted without changes and the sections will not be republished.

BACKGROUND AND PURPOSE

The Texas Legislature passed the General Appropriations Act, Senate Bill 1, 79th Legislature, Regular Session (2005). Article II, Rider 85, makes a portion of the appropriation contingent upon collection of fees above the Comptroller of Public Accounts' Biennial Revenue estimate. To meet these requirements, cost recovery fees are included in these amendments.

Programs with regulatory authority over narcotic treatment, food manufacturers, food wholesalers, warehouse operators, retail food establishments, and device distributors and manufacturers, were evaluated to determine the level of increase in fees based on the following criteria: the date of the last fee increase for the specific program area; licensee's ability to pay in comparison to average salary of professionals; the percentage of revenue above costs for the specific program; the cost of licenses compared to other similar licenses; and the value added analysis of the license. Additional costs of administration and enforcement of the program, due to a recent legislative increase in pay, longevity pay, and travel reimbursement, were also factored in to determine the direct and indirect costs of each program.

SECTION-BY-SECTION SUMMARY

Amendments to §229.145 contain increases in fees for permits, patient certificates, renewal certificates and delinquency charges for renewing expired permits or submission of late status reports, for narcotic treatment licensees. References to one-year permits have been deleted because the program no longer issues one-year permits. Specifically, §229.145 increases the fees by 40%, including a $300 increase in the initial application fee stated in §229.145(b)(1); §229.145(b)(2) increases the initial patient fee by $50 and increases the patient fee certificate by $20; §229.145(b)(4)(A) increases the delinquency fee for an expired patient certificate by $2; §229.145(b)(4)(B) increases a delinquency fee for submission of a status report after expiration of a patient certificate by $100; §229.145(b)(4)(C) increases the renewal fee of a patient certificate by $20; and §229.145(b)(4)(D) increases the fee for each additional patient requiring a certificate by $20.

Amendments to §229.182(a)(7) change the department name from "Texas Department of Health or its successor" to "Department of State Health Services" to state the new department name. Amendments to §229.182 contain increases in licensing fees for food manufacturers, food wholesalers, and wholesalers with combination products for initial and renewal applications per location, based upon gross annual sales. References to one-year permits have been deleted because the program no longer issues one-year permits. Specifically, new §229.182(b)(1)(A) increases the license fee for food manufacturers with gross annual sales of $0.00 - $9,999.99 by $50; new §229.182(b)(1)(B) increases the license fee for food manufacturers with gross annual sales of $10,000.00 - $24,999.99 by $50; new §229.182(b)(1)(C) increases the license fee for food manufacturers with gross annual sales of $25,000.00 - $99,999.99 by $50; new §229.182(b)(1)(D) increases the license fee for food manufacturers with gross annual sales of $100,000.00 - $199,999.99 by $60; new §229.182(b)(1)(E) increases the license fee for food manufacturers with gross annual sales of $200,000.00 - $999,999.99 by $100; new §229.182(b)(1)(F) increases the license fee for food manufacturers with gross annual sales of $1 million - $9,999,999.99 by $120; new §229.182(b)(1)(G) increases the license fee for food manufacturers with gross annual sales of greater than or equal to $10 million by $180; new §229.182(b)(2)(A) increases the license fee for food wholesalers with gross annual sales of $0.00 - $199,999.99 by $50; new §229.182(b)(2)(B) increases the license fee for food wholesalers with gross annual sales of $200,000.00 - $499,999.99 by $50; new §229.182(b)(2)(C) increases the license fee for food wholesalers with gross annual sales of $500,000.00 - $999,999.99 by $80; new §229.182(b)(2)(D) increases the license fee for food wholesalers with gross annual sales of $1 million - $9,999,999.99 by $100; and new §229.182(b)(2)(E) increases the license fee for food wholesalers with gross annual sales of greater than or equal to $10 million by $150.

Amendments to §229.372 contain increases in retail food establishment permit fees based on gross annual volume of food sales or establishment type. References to one-year permits have been deleted because the program no longer issues one-year permits. Specifically, §229.372(a)(1)(A) increases the fee for an establishment with a gross annual volume of food sales of $0 - $49,999.99 by 25% or $50; §229.372(a)(1)(B) increases the fee for an establishment with a gross annual volume of sales of $50,000 - $149,999.99 by 25% or $100; §229.372(a)(1)(C) increases the fee for an establishment with a gross annual volume of sales of $150,000 or more by 17% or $100; §229.372(a)(2) increases the fee for a for-profit school contractor by 25% or $50; §229.372(a)(3)(B) increases the fee for mobile food unit by 25% or $50; §229.372(a)(4) increases the fee for a roadside food vendor by 25% or $50; and §229.372(a)(5) increases the fee for a child care center by 25% or $50.

Amendments to §229.439 contain increases in fees for licenses and renewal licenses for device distributors or manufacturers. References to one-year permits have been deleted because the program no longer issues one-year permits. Specifically, §229.439 increases the fees by 20%, §229.439(a)(1)(A) increases the license fee for distributors with gross annual sales of $0 - $499,999.99 by $80; §229.439(a)(1)(B) increases the license fee for distributors with gross annual sales of $500,000 - $9,999,999.99 by $180; §229.439(a)(1)(C) increases the license fee for distributors with gross annual sales greater than or equal to $10 million by $280; §229.439(a)(3)(A) increases the license fee for manufacturers with gross annual sales of $0 - 499,999.99 by $80; §229.439(a)(3)(B) increases the license fee for manufacturers with gross annual sales of $500,000 - $9,999,999.99 by $360; and §229.439(a)(3)(C) increases the license fee for manufacturers with gross annual sales of greater than or equal to $10 million by $600.

COMMENTS

The department, on behalf of the commission, has reviewed and prepared responses to the comments received regarding the proposed rules during the comment period, which the commission has reviewed and accepts. The department's responses to the comments are discussed in the summary of comments.

The comment on the proposed rule §229.145 was submitted by Texas Clinic Fulton. The commenter was generally not in favor of the amendment to the rule requiring increased patient fees for operating narcotic treatment programs.

Comment: Concerning the patient fee increases in §229.145(b), the commenter objected to the increased patient fees and requested that the proposed fee increases be withdrawn altogether or, at a minimum, delayed until 2007 to provide an adjustment period and to eliminate the cost advantage to programs that paid for 2006 fees in 2005, at 2005 fee rates. The commenter also sought an annual, rather than biennial, payment schedule for patient fees.

Response: The commission disagrees with this comment. Fees based upon the number of patients link a program's increased costs to the ability to generate revenue. At the same time, the department has been directed to recover 100% of its regulatory costs, including indirect costs. The increased fees recover regulatory costs associated with increases in employee pay, travel reimbursement, and allows for recovery of appropriations. No change was made to the rule as a result of the comment.

The comments on the proposed rule §229.182 were submitted by Glacier Water and National Automatic Merchandising Association. The commenters were not against the rule in its entirety; however, the commenters suggested recommendations for change as discussed in the comments.

Comment: Concerning the fee increase in §229.182(b)(1)(A), both commenters stated that the fees were being significantly increased for water vending machines. The commenters also felt that this increase is disproportionate to the increases for food manufacturers in other fee categories.

Response: The commission disagrees with the comments, because the department has been directed to recover 100% of its regulatory costs, including indirect costs. The increased fees recover regulatory costs associated with increases in employee pay, travel reimbursement, and allows for recovery of appropriations. With regard to the comment concerning the disproportionate increase, the lowest fee category was recovering, at a minimum, the cost of printing the license. This does not even include the cost of conducting an inspection. This fee schedule was raised to cover at least the cost to print the license. No change was made to the rule as a result of the comments.

Comment: Concerning the fee increase in §229.182(b)(1)(A), one commenter proposed that a separate category for water vending machines be created under the heading of Food Manufacturers.

Response: The commission disagrees with the comment, because this comment may involve statutory changes in addition to rule changes. The commission will study this issue and propose changes at a later date, if warranted. No change was made as a result of this comment.

The department staff on behalf of the commission provided a comment and the commission has reviewed and agrees to the following changes that will clarify the fee structure.

Change: Concerning §229.182(b)(1)(A)-(G), 229.182(b)(2)(A)-(E), 229.182(b)(3)(A)-(E), and 229.182(b)(5)(A)-(E), language was added to clarify the fees for a two-year license, a two-year license that is amended due to ownership, and a two-year license that is amended during the current licensure period due to minor changes.

The comment on the proposed rule §229.372 was submitted by the Gulf Coast Retailers Association. The commenter was against the fee increases; however, the commenter suggested recommendations for changes as discussed in the comments.

Comment: Concerning the retail food establishment fee increases in general, the commenter expressed opposition to the fee increases at the present time. The commenter stated that members of his organization have experienced increases in fuel costs and have supported the relief efforts of Hurricane Katrina. The commenter suggested that the fee increases be postponed until January 2007.

Response: The commission disagrees with the comments, because the department has been directed by the legislature to recover 100% of its regulatory costs, including indirect costs, and must do so at this time. The increased fees recover regulatory costs associated with increase in employee pay, travel, reimbursement, and allows for recovery of appropriations. In addition, the department has not raised the fees since March 2000. No change was made to the rule as a result of this comment.

The department staff on behalf of the commission provided a comment and the commission has reviewed and agrees to the following changes that will clarify license fees associated with amending a license.

Change: Concerning §§229.439(a)(1)(A)-(C), 229.439(a)(2)(A)-(E), and 229.439(a)(3)(A)-(C), the section was clarified to distinguish between license fees that apply to a two-year license, a two-year license that is amended due to a change in ownership, and a two-year license that is amended during the current licensure period due to minor changes.

No other comments were received regarding the amended sections as proposed.

LEGAL CERTIFICATION

The Department of State Health Services General Counsel, Cathy Campbell, certifies that the adopted rules have been reviewed by legal counsel and found to be within the state agencies' authority to adopt.

Subchapter J. MINIMUM STANDARDS FOR NARCOTIC TREATMENT PROGRAMS

25 TAC §229.145

STATUTORY AUTHORITY

The adopted amendment is authorized by Health and Safety Code, §§12.0111, 431.204, 431.222, 431.276, 432.009, 437.0125, 441.003, and 466.023, which require the department to charge fees for issuing or renewing a license or permit; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

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 January 11, 2006.

TRD-200600179

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Subchapter L. LICENSURE OF FOOD MANUFACTURERS, FOOD WHOLESALERS, AND WAREHOUSE OPERATORS

25 TAC §229.182

STATUTORY AUTHORITY

The adopted amendment is authorized by Health and Safety Code, §§12.0111, 431.204, 431.222, 431.276, 432.009, 437.0125, 441.003, and 466.023, which require the department to charge fees for issuing or renewing a license or permit; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

§229.182.Licensing/Registration Fee and Procedures.

(a) License/registration required.

(1) A person who manufactures food must obtain a food manufacturer's license for each place of business as described in subsection (b)(1) or (2) of this section; also, a food manufacturer who distributes its own food, and/or food from another manufacturer must only obtain a food manufacturer's license. When calculating the amount of the licensing fee, the manufacturer must include the total for all food manufactured and wholesaled from the place of business.

(2) A person who distributes food, but who does not manufacture food, must obtain a food wholesaler's license for each place of business as described in subsection (b)(3) or (4) of this section.

(3) A person who distributes food, but who does not manufacture food, and who chooses to store that food with a warehouse operator licensed under subsection (b)(8) or (9) of this section, must register as a food wholesaler under subsection (b)(7) of this section.

(4) A person who distributes food and drugs, food and medical devices, or food and drugs and medical devices, must obtain a wholesaler with combination products license, as described in subsection (b)(5) or (6) of this section, for each place of business; this license is required even if the products are stored in a separate warehouse or with a warehouse operator licensed under subsection (b)(8) or (9) of this section.

(5) A warehouse operator storing food for a registered food wholesaler must obtain a warehouse operator license as described in subsection (b)(8) or (9) of this section for each such warehouse. A warehouse operator who distributes only food is required to obtain only a warehouse operator license. A warehouse operator who distributes combination products (food and drugs, food and medical devices, or food, drugs, and medical devices) and is also required to obtain a wholesaler's license under subsection (b)(5) or (6) of this section will be issued only one license. The license fee to be paid will be the higher of the two applicable fees.

(6) A warehouse operated by a food manufacturer which is totally separate from any manufacturing location, including locations from which foods are held for limited periods of time for distribution, must obtain a warehouse operator license as described in subsection (b)(8) or (9) of this section for each such warehouse.

(7) A retail food store that also manufactures food and is required to be permitted by the Department of State Health Services (department) pursuant to Health and Safety Code, Chapter 437, and the Texas Food Establishment Regulations, §229.370 and §229.371 of this title (relating to Permitting Retail Food Establishments), will be issued only one license or permit. The license or permit fee to be paid will be the higher of the two applicable fees.

(8) A wholesaler who distributes combination products and who is also required to be licensed as a warehouse operator under this section will be issued only one license. The license fee to be paid will be the higher of the two applicable fees.

(9) A food manufacturer required to be licensed exclusively pursuant to Health and Safety Code, Chapter 432, relating to Food, Drug, Device and Cosmetic Salvage, Chapter 433, relating to Meat and Poultry Inspection, Chapter 435, relating to Dairy Products, Chapter 436, relating to Aquatic Life, or Chapter 440, relating to Frozen Desserts, is not required to license pursuant to this chapter.

(b) Licensing and registration fees.

(1) Food manufacturer. No person may operate or conduct business as a food manufacturer in this state without first obtaining a license from the department. Licenses issued under this subsection expire two years from the start date of the regulated activity. All applicants for a new or renewal food manufacturer's license shall pay a license fee.

(A) For each place of business having gross annual manufactured food sales of $0.00 - $9,999.99, the fees are:

(i) $100 for a two-year license;

(ii) $100 for a two-year license that is amended due to a change of ownership; and

(iii) $50 for a two-year license that is amended during the current licensure period due to minor changes.

(B) For each place of business having gross annual manufactured food sales of $10,000 - $24,999.99, the fees are:

(i) $150 for a two-year license;

(ii) $150 for a two-year license that is amended due to a change of ownership; and

(iii) $75 for a two-year license that is amended during the current licensure period due to minor changes.

(C) For each place of business having gross annual manufactured food sales of $25,000 - $99,999.99, the fees are:

(i) $250 for a two-year license;

(ii) $250 for a two-year license that is amended due to a change of ownership; and

(iii) $125 for a two-year license that is amended during the current licensure period due to minor changes.

(D) For each place of business having gross annual manufactured food sales of $100,000 - $199,999.99, the fees are:

(i) $560 for a two-year license;

(ii) $560 for a two-year license that is amended due to a change of ownership; and

(iii) $280 for a two-year license that is amended during the current licensure period due to minor changes.

(E) For each place of business having gross annual manufactured food sales of $200,000 - $999,999.99, the fees are:

(i) $900 for a two-year license;

(ii) $900 for a two-year license that is amended due to a change of ownership; and

(iii) $450 for a two-year license that is amended during the current licensure period due to minor changes.

(F) For each place of business having gross annual manufactured food sales of $1 million - $9,999,999.99, the fees are:

(i) $1,120 for a two-year license;

(ii) $1,120 for a two-year license that is amended due to a change of ownership; and

(iii) $560 for a two-year license that is amended during the current licensure period due to minor changes.

(G) For each place of business having gross annual manufactured food sales greater than or equal to $10 million, the fees are:

(i) $1,680 for a two-year license;

(ii) $1,680 for a two-year license that is amended due to a change of ownership; and

(iii) $840 for a two-year license that is amended during the current licensure period due to minor changes.

(2) Food wholesaler. No person may operate or conduct business as a food wholesaler in this state without first obtaining a food wholesaler's license from the department. Licenses issued under this subsection expire two years from the start date of the regulated activity. Except as provided for in paragraph (4) of this subsection, all food wholesalers shall pay a license fee.

(A) For each place of business having gross annual food sales of $0.00 - $199,999.99, the fees are:

(i) $250 for a two-year license;

(ii) $250 for a two-year license that is amended due to a change of ownership; and

(iii) $125 for a two-year license that is amended during the current licensure period due to minor changes.

(B) For each place of business having gross annual food sales of $200,000 - $499,999.99, the fees are:

(i) $450 for a two-year license;

(ii) $450 for a two-year license that is amended due to a change of ownership; and

(iii) $225 for a two-year license that is amended during the current licensure period due to minor changes.

(C) For each place of business having gross annual food sales of $500,000 - $999,999.99, the fees are:

(i) $680 for a two-year license;

(ii) $680 for a two-year license that is amended due to a change of ownership; and

(iii) $340 for a two-year license that is amended during the current licensure period due to minor changes.

(D) For each place of business having gross annual food sales of $1 million - $9,999,999.99, the fees are:

(i) $900 for a two-year license;

(ii) $900 for a two-year license that is amended due to a change of ownership; and

(iii) $450 for a two-year license that is amended during the current licensure period due to minor changes.

(E) For each place of business having gross annual food sales of greater than or equal to $10 million, the fees are:

(i) $1,350 for a two-year license;

(ii) $1,350 for a two-year license that is amended due to a change of ownership; and

(iii) $675 for a two-year license that is amended during the current licensure period due to minor changes.

(3) Wholesaler with combination products. A person who is required to be licensed as a food wholesaler under this section and who is also required to be licensed as a wholesale distributor of drugs under §229.252(a)(1) of this title or as a device distributor under §229.439(a)(1) of this title shall pay a combined licensure fee for each place of business. The licensure fee shall be based on the combined gross annual sales of these regulated products (foods, drugs, and/or devices).

(A) For each place of business having combined gross annual sales of $0.00 - $199,999.99, the fees are:

(i) $400 for a two-year license;

(ii) $400 for a two-year license that is amended due to a change of ownership; and

(iii) $200 for a two-year license that is amended during the current licensure period due to minor changes.

(B) For each place of business having combined gross annual sales of $200,000 - $499,999.99, the fees are:

(i) $600 for a two-year license;

(ii) $600 for a two-year license that is amended due to a change of ownership; and

(iii) $300 for a two-year license that is amended during the current licensure period due to minor changes.

(C) For each place of business having combined gross annual sales of $500,000 - $999,999.99, the fees are:

(i) $800 for a two-year license;

(ii) $800 for a two-year license that is amended due to a change of ownership; and

(iii) $400 for a two-year license that is amended during the current licensure period due to minor changes.

(D) For each place of business having combined gross annual sales of $1 million - $9,999,999.99, the fees are:

(i) $1,000 for a two-year license;

(ii) $1,000 for a two-year license that is amended due to a change of ownership; and

(iii) $500 for a two-year license that is amended during the current licensure period due to minor changes.

(E) For each place of business having combined gross annual sales greater than or equal to $10 million, the fees are:

(i) $1,500 for a two-year license;

(ii) $1,500 for a two-year license that is amended due to a change of ownership; and

(iii) $750 for two-year license that is amended during the current licensure period due to minor changes.

(4) Food wholesaler registration. Except as provided in paragraph (3) of this subsection, a food wholesaler is not required to obtain a license under this section for a place of business if all of the food distributed from that place of business will be stored in a warehouse licensed under this section. A food wholesaler that is not required to obtain a license for a place of business under this section shall register each place of business with the department pursuant to subsection (d)(2) of this section, but only one registration fee must be paid by each such food wholesaler. A food wholesaler who meets this subsection's requirements shall pay a registration fee of $100. A registration issued under this subsection expires two years from the start date of the regulated activity.

(5) Warehouse operator. No person may operate or conduct business as a warehouse operator in this state without first obtaining a license from the department. Licenses issued under this subsection expire two years from the start date of the regulated activity. License fees are based on the maximum amount of square feet dedicated to food storage during the licensing period. A warehouse operator shall pay a license fee.

(A) For each place of business having food storage of 0 - 6,000 square feet, the fees are:

(i) $350 for a two-year license;

(ii) $350 for a two-year license that is amended due to a change of ownership; and

(iii) $175 for a two-year license that is amended during the current licensure period due to minor changes.

(B) For each place of business having food storage of 6,001 - 24,000 square feet, the fees are:

(i) $700 for a two-year license;

(ii) $700 for a two-year license that is amended due to a change of ownership; and

(iii) $350 for a two-year license that is amended during the current licensure period due to minor changes.

(C) For each place of business having food storage of 24,001 - 75,000 square feet, the fees are:

(i) $1,050 for a two-year license;

(ii) $1,050 for a two-year license that is amended due to a change of ownership; and

(iii) $525 for a two-year license that is amended during the current licensure period due to minor changes.

(D) For each place of business having food storage of 75,001 - 250,000 square feet, the fees are:

(i) $1,400 for a two-year license;

(ii) $1,400 for a two-year license that is amended due to a change of ownership; and

(iii) $700 for a two-year license that is amended during the current licensure period due to minor changes.

(E) For each place of business having food storage of 250,001 or more square feet, the fees are:

(i) $2,000 for a two-year license;

(ii) $2,000 for a two-year license that is amended due to a change of ownership; and

(iii) $1,000 for a two-year license that is amended during the current licensure period due to minor changes.

(6) A firm that has more than one business location may request a one-time proration of fees when applying for a license for each new location. Upon approval by the department, the expiration date of the license for the new location will be established the same as the firm's previously licensed locations.

(7) For all applications and renewal applications, the department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

(8) All license/registration fees paid under this section are non-refundable.

(9) If the license/registration category changes during the license period, the license shall be renewed in the proper category at the time of renewal.

(c) License/registration forms. License/registration forms may be obtained from the department, located at 1100 West 49th Street, Austin, Texas 78756-3182, or from the website at www.tdh.state.tx.us/bfds/lic/apps.html.

(d) License/registration application. All food manufacturers, food wholesalers, and warehouse operators shall file a license application on a form authorized by the department.

(1) The application form shall be signed and verified, and shall contain the following information:

(A) the name of the legal entity to be licensed, including the name under which the business is conducted;

(B) the physical address of the place of business;

(C) the mailing address of the place of business;

(D) if a sole proprietorship, the name of the proprietor; if a partnership, the names of all partners; if a corporation, the name of the corporation, the date and place of incorporation and name and address of its registered agent in the state; or if any other type of association, the names of the principals of such association;

(E) the names of those individuals in an actual administrative capacity which, in the case of a sole proprietorship shall be the managing proprietor; in a partnership, the managing partner; in a corporation, the officers and directors; in any other association, those in a managerial capacity; and

(F) a list of categories of gross annual sales or square footage as applicable, which must be marked and adhered to by the licensee in the determination and paying of the license fee.

(2) Food wholesalers who meet the requirements to register under subsection (b)(7) of this section, must submit a registration form authorized by the department which shall be signed and verified, and contain the following information:

(A) the name of the legal entity to be registered, including the name under which the business is conducted;

(B) the name, telephone number, and physical addresses of the licensed warehouses where the food wholesaler's food products are or will be stored;

(C) the physical address where the food wholesaler's distribution records are located and available for review upon inspection;

(D) the mailing address and telephone number where the food wholesaler may be contacted; and

(E) a description of the type of food products being distributed by the food wholesaler.

(e) Two or more establishments. If the food manufacturer, food wholesaler, or warehouse operator operates more than one place of business, each place of business shall be licensed separately by listing the name and address of each place of business on the license application.

(f) Issuance of license/registration. The department may license/register a manufacturer, food wholesaler, or warehouse operator who meets the requirements of this section and §229.183 of this title (relating to Minimum Standards for Licensure/Registration).

(1) The initial license/registration shall be valid for two years from the date the license/registration was issued.

(2) The renewal license/registration shall be valid for two years from the date the license/registration was issued.

(3) A current license/registration shall only be issued when all past due fees and late fees are paid.

(g) Renewal of license/registration.

(1) For each licensing/registration period, the food manufacturer, food wholesaler, or warehouse operator shall renew its license/registration as applicable following the requirements of this section and §229.183 of this title.

(2) A person who holds a license/registration issued by the department under the Health and Safety Code shall renew the license/registration by filing an application for renewal on a form authorized by the department accompanied by the appropriate licensing/registration fee. A licensee/registrant must file for renewal before the expiration date of the current license. A person who files a renewal application after the expiration date must pay an additional $100 as a delinquency fee.

(3) Failure to submit the renewal during the licensing/registration period may subject the food manufacturer, food wholesaler, or warehouse operator to the offense provisions under the Health and Safety Code, Chapter 431, to the provision of §229.184 of this title (relating to the Refusal, Revocation, or Suspension of License/Registration), and to the provisions of §229.222 of this title (relating to Penalties).

(h) Amendment of license/registration.

(1) Fees. A license or registration that is amended during the licensing or registration period, including a change of name, ownership (change in legal entity), or a notification of a change in the location of a licensed or registered place of business required under the Health and Safety Code, §431.2251, will require a new application and submission of license or registration fees as outlined in subsection (b) of this section.

(2) Change in name, ownership, status, or location of business.

(A) Not later than the 31st day before the date of the change in the name, status, or location of a licensed/registered place of business, the license/registration holder shall provide written notice to the department of the intended change. The notice shall include, as applicable:

(i) The new name of the legal entity to be licensed or registered, including the name under which the business is conducted;

(ii) The physical and mailing address of the new location;

(iii) The name and physical address of the licensed warehouse where the food wholesaler's food products will be stored;

(iv) The physical address where the food wholesaler's distribution records are located and available for review upon inspection; and

(v) The mailing address and telephone number where the food wholesaler may be contacted.

(B) Not later than the 10th day after completion of the change of location, the licensee or registrant shall forward to the department the name and residence address of the individual in charge of the new place of business.

(C) Notice is considered adequate if the licensee or registrant provides the intent and verification notices to the department by certified mail, return receipt requested, mailed to the department at 1100 West 49th Street, Austin, Texas 78756-3182.

(i) This section does not apply to:

(1) a person, firm, or corporation that harvests, packages, washes, or ships raw fruits or vegetables;

(2) a direct seller who is not otherwise engaged in manufacturing;

(3) a person engaged solely in the distribution of alcoholic beverages in sealed containers by holders of licenses or permits issued under the Alcoholic Beverage Code, Chapters 19, 20, 21, 23, 64, or 65;

(4) a food service establishment or a commissary which distributes food primarily intended for immediate consumption on the premises of a retail outlet under common ownership unless the business regularly engages in the labeling, combining, and purifying of food which is either sold for resale or packaged for sale in other than individual portions; or

(5) a restaurant that provides food for immediate human consumption to a political subdivision or to a licensed nonprofit organization if the restaurant would not otherwise be considered a food wholesaler.

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 January 11, 2006.

TRD-200600180

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Subchapter U. PERMITTING RETAIL FOOD ESTABLISHMENTS

25 TAC §229.372

STATUTORY AUTHORITY

The adopted amendment is authorized by Health and Safety Code, §§12.0111, 431.204, 431.222, 431.276, 432.009, 437.0125, 441.003, and 466.023, which require the department to charge fees for issuing or renewing a license or permit; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

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 January 11, 2006.

TRD-200600181

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Subchapter X. LICENSING OF DEVICE DISTRIBUTORS AND MANUFACTURERS

25 TAC §229.439

STATUTORY AUTHORITY

The adopted amendment is authorized by Health and Safety Code, §§12.0111, 431.204, 431.222, 431.276, 432.009, 437.0125, 441.003, and 466.023, which require the department to charge fees for issuing or renewing a license or permit; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

§229.439.Licensure Fees.

(a) License fee.

(1) No person may operate or conduct business as a device distributor without first obtaining a license from the department. All applicants for a device distributor license or a renewal license shall pay a licensing fee. All fees are nonrefundable. Licenses are issued for two-year terms. A license shall only be issued when all past due fees and delinquency fees are paid. License fees are based on gross annual device sales.

(A) For a distributor with gross annual device sales of $0 - $499,999.99, the fees are:

(i) $480 for a two-year license;

(ii) $480 for a two-year license that is amended due to a change of ownership; and

(iii) $240 for a two-year license that is amended during the current licensure period due to minor changes.

(B) For a distributor with gross annual device sales of $500,000 - $9,999,999.99, the fees are:

(i) $1,080 for a two-year license;

(ii) $1,080 for a two-year license that is amended due to a change of ownership; and

(iii) $540 for a two-year license that is amended during the current licensure period due to minor changes.

(C) For a distributor with gross annual device sales greater than or equal to $10 million, the fees are:

(i) $1,680 for a two-year license;

(ii) $1,680 for a two-year license that is amended due to a change of ownership; and

(iii) $840 for a two-year license that is amended during the current licensure period due to minor changes.

(2) A person who is required to be licensed as a device distributor under this section and who is also required to be licensed as a wholesale drug distributor under §229.252(a)(1) of this title (relating to Licensing Fee and Procedures) or as a wholesale food distributor under §229.182(a)(3) of this title (relating to Licensing Fee and Procedures) shall pay a combined licensure fee for each place of business. All fees are nonrefundable. Licenses are issued for two-year terms. License fees are based on the combined gross annual sales of these regulated products (foods, drugs, and/or devices).

(A) For each place of business having combined gross annual sales of $0 - $199,999.99, the fees are:

(i) $400 for a two-year license;

(ii) $400 for a two-year license that is amended due to a change of ownership; and

(iii) $200 for a two-year license that is amended during the current licensure period due to minor changes.

(B) For each place of business having combined gross annual sales of $200,000 - $499,999.99, the fees are:

(i) $600 for a two-year license;

(ii) $600 for a two-year license that is amended due to a change of ownership; and

(iii) $300 for a two-year license that is amended during the current licensure period due to minor changes.

(C) For each place of business having combined gross annual sales of $500,000 - $999,999.99, the fees are:

(i) $800 for a two-year license;

(ii) $800 for a two-year license that is amended due to a change of ownership; and

(iii) $400 for a two-year license that is amended during the current licensure period due to minor changes.

(D) For each place of business having combined gross annual sales of $1 million - $9,999,999.99, the fees are:

(i) $1,000 for a two-year license;

(ii) $1,000 for a two-year license that is amended due to a change of ownership; and

(iii) $500 for a two-year license that is amended during the current licensure period due to minor changes.

(E) For each place of business having combined gross annual sales greater than or equal to $10 million, the fees are:

(i) $1,500 for a two-year license;

(ii) $1,500 for a two-year license that is amended due to a change of ownership; and

(iii) $750 for a two-year license that is amended during the current licensure period due to minor changes.

(3) No person may operate or conduct business as a device manufacturer in this state without first obtaining a license from the department. All applicants for a device manufacturer license or renewal license shall pay a licensing fee. All fees are nonrefundable. Licenses are issued for two-year terms. License fees are based on gross annual device sales.

(A) For a manufacturer with gross annual device sales of $0 - $499,999.99, the fees are:

(i) $480 for a two-year license;

(ii) $480 for a two-year license that is amended due to a change of ownership; and

(iii) $240 for a two-year license that is amended during the current licensure period due to minor changes.

(B) For a manufacturer with gross annual device sales of $500,000 - $9,999,999.99, the fees are:

(i) $2,160 for a two-year license;

(ii) $2,160 for a two-year license that is amended due to a change of ownership; and

(iii) $1,080 for a two-year license that is amended during the current licensure period due to minor changes.

(C) For a manufacturer with gross annual device sales greater than or equal to $10 million, the fees are:

(i) $3,600 for a two-year license;

(ii) $3,600 for a two-year license that is amended due to a change of ownership; and

(iii) $1,800 for a two-year license that is amended during the current licensure period due to minor changes.

(b) Texas Online. Applicants may submit applications and renewal applications for a license under these sections electronically by the Internet through Texas Online at www.texasonline.state.tx.us. The department is authorized to collect fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

(c) Exemption from licensing fees. A person is exempt from the licensing fees required by this section if the person is:

(1) licensed under §289.252 of this title (relating to Licensing of Radioactive Material) or registered under §289.226 of this title (relating to Registration of Radiation Machine Use and Services) and engages only in the following types of device distribution or manufacturing:

(A) the manufacture or distribution of radiation machines which are devices; or

(B) the manufacture or distribution of devices which contain radioactive materials; or

(2) a charitable organization, as described in the Internal Revenue Code of 1986, §501(c)(3), or a nonprofit affiliate of the organization, to the extent otherwise permitted by law.

(d) Sale of food, drugs, or devices. This section includes the manufacture, production, processing, packaging, exposure, offer, possession, and holding of any of the regulated articles for sale; the sale, dispensing, and giving of any regulated article; and supplying or applying of any regulated articles in the operation of any food, drug, or device place of business.

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 January 11, 2006.

TRD-200600182

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972


Chapter 289. RADIATION CONTROL

Subchapter D. GENERAL

25 TAC §289.204

The Executive Commissioner of the Health and Human Services Commission (commission), on behalf of the Department of State Health Services (department), adopts an amendment to §289.204, concerning radiation control fees with changes to the proposed text as published in the October 21, 2005, issue of the Texas Register (30 TexReg 6921).

BACKGROUND AND PURPOSE

The Texas Legislature passed the General Appropriations Act, Senate Bill 1, 79th Legislature, Regular Session (2005). Article II, Rider 85, makes a portion of the appropriation contingent upon collection of fees above the Comptroller of Public Accounts' Biennial Revenue estimate. To meet these requirements, cost recovery fees are included in this amendment.

The radiation control program was evaluated to determine the level of increase in fees based on the following criteria: the date of the last fee increase for the specific program area; the percentage of revenue above costs for the specific program; and the cost of permits compared to other similar permits. Additional costs of administration and enforcement of the program, due to a recent legislative increase in pay, longevity pay, and travel reimbursement, were also evaluated to determine the direct and indirect costs of each program.

SECTION-BY-SECTION SUMMARY

The amendment adds references to §289.232 of this title (relating to Radiation Control Regulations for Dental Radiation Machines) and §289.233 of this title (relating to Radiation Control Regulations for Radiation Machines Used in Veterinary Medicine) in §289.204(b)(1)(C) for clarification; and adds the words "and Intense-Pulsed Light Devices" after the word "Lasers" at the end of the subparagraph to state the correct title of the rule being cited.

In addition, the amendment changes the agency name from "Texas Department of Health, Bureau of Radiation Control" to "Radiation Control, Department of State Health Services" to state the new department name in §289.204(d)(8).

Amendments to §289.204 contain increases in fees for certificates of registration, radioactive material licenses; emergency planning and implementation; and other regulatory services. Specifically, the categories of fees contained in §289.204(e) for radioactive materials licenses increase by 28%, ranging from a two-year fee of $704 for a gauge general license acknowledgement to a two-year fee of $273,800 for a Class III waste processing license. Fees contained in §289.204(f) for evaluation of a sealed source or device increase by 28%, ranging from $2,309 for an amendment requiring reevaluation of a sealed source to $9,258 for an initial evaluation of a device. Fees contained in §289.204(m) for uranium recovery and byproduct material disposal facility licenses are also increased by 28% and range from a two-year fee of $52,012 for an in situ license in post-closure to a two-year fee of $463,096 for a new application for a conventional uranium recovery license. In addition, the one-time fee adjustments contained in §289.204(o) for uranium recovery and byproduct material disposal facility licenses are increased by 28% and range from $11,235 for the addition of a wellfield on contiguous property to $71,651 for addition of an in situ satellite site. The fees contained in §289.204(j) for certificates of registration are increased by 15% for these categories of machine type or use: computerized tomography, fluoroscopy, accelerators, radiographic machines only, industrial radiography, other industrial machines, morgues and educational facilities with machines for non-human use, and other radiation machine services. The fees for these categories range from a two-year fee of $253 for radiation machine services to a two-year fee of $1,656 for computerized tomography. The fees contained in §289.204(j) for certificates of registration are increased by 10% for these categories of machine type or use: dental radiographic only, podiatric radiographic only, veterinary, and minimal threat machines. The fees for these categories range from a two-year fee of $264 for podiatric radiographic machines to $374 for minimal threat machines.

Section §289.204(j) adds language to clarify that the fees specified in this section are the applicable fees for persons using only dental radiographic machines and for persons using veterinary radiographic machines, including computerized tomography, fluoroscopy, and accelerators.

COMMENTS

The department, on behalf of the commission, has reviewed and prepared responses to the comments received regarding the proposed rules during the comment period, which the commission has reviewed and accepts. The commenters were individuals, associations, and/or groups, including the following: The Cosmetic Dental Center; Associated Wireline Services; Cardiovascular Center, P.A.; and Radiation Technology. The commenters were against the fee increases; however, one commenter suggested a recommendation for change as discussed in the summary of comments.

Comment: Concerning the Radiation Control fee increases in general, 20 commenters expressed strong opposition to the fee increases.

Response: The commission disagrees with the comments, because the department has been directed by the legislature to recover 100% of its regulatory costs, including indirect costs. The increased fees recover regulatory costs associated with appropriations and increases in employee pay and travel reimbursement. No change was made to the rule as a result of the comments.

Comment: Concerning the radioactive material license fee increases, three commenters suggested that the commission should allow consideration for small businesses within the assessment of increasing fees. One commenter stated that small businesses should be given the opportunity to submit forms for certification of small entity status for the purpose of annual fees as used by the United States Nuclear Regulatory Commission and Oklahoma Department of Environmental Quality. In addition, the commenter states that if Texas would adopt such rules it would be more equitable for the licensees.

Response: The commission disagrees with the comments. The Radiation Control Act, Health and Safety Code, Chapter 401, provides the commission with the authority to adopt rules related to radiation control functions and requires that fees not exceed actual regulatory costs. Providing allowances for small businesses shifts costs to other licensees that incur the same regulatory costs, but that do not qualify as a small business, creating an inequity among licensees of the same type of radioactive material use. No change was made to the rule as a result of the comments.

Comment: Concerning the radiation control fees, four commenters expressed strong opposition to the fee increase because of continued delay or reduction in reimbursement for services to patients from Medicare and insurance companies.

Response: The commission disagrees with the comments, because the department has been directed to recover 100% of its regulatory costs and has no control over the delay or reduction in reimbursement of services to patients from Medicare and insurance companies. No change was made to the rule as a result of the comments.

The department staff on behalf of the commission provided a comment and the commission has reviewed and agrees to the following change that will correctly reflect reference to the rule effective date.

Change: Concerning §289.204(j), the department's staff deleted the January 1, 2006, effective date from the rule text and replaced it with "the effective date of this section" to accurately reflect the actual effective date of this amended section, rather than an anticipated effective date.

LEGAL CERTIFICATION

The Department of State Health Services General Counsel, Cathy Campbell, certifies that the adopted rule has been reviewed by legal counsel and found to be within the state agencies' authority to adopt.

STATUTORY AUTHORITY

The adopted amendment to §289.204 is authorized by Health and Safety Code, §12.0111, which requires the department to charge fees for issuing or renewing a license; Health and Safety Code, §401.301, which allows the department to collect fees for radiation control licenses and registrations that it issues; Health and Safety Code, §401.302, which allows the department to collect fees from each nuclear reactor or other fixed nuclear facility in the state that uses special nuclear material; Health and Safety Code, §401.051, which provides the Executive Commissioner of the Health and Human Services Commission with authority to adopt rules and guidelines relating to the control of radiation; and Government Code, §531.0055, and Health and Safety Code, §1001.075, which authorize the Executive Commissioner of the Health and Human Services Commission to adopt rules and policies necessary for the operation and provision of health and human services by the department and for the administration of Health and Safety Code, Chapter 1001.

§289.204.Fees for Certificates of Registration, Radioactive Material Licenses, Emergency Planning and Implementation, and Other Regulatory Services.

(a) Purpose. The requirements in this section establish fees for licensing, registration, emergency planning and implementation, and other regulatory services, and provide for their payment.

(b) Scope. Except as otherwise specifically provided, the requirements in this section apply to any person who is the following:

(1) an applicant for, or holder of:

(A) a radioactive material license issued in accordance with §289.252 of this title (relating to Licensing of Radioactive Material), §289.254 of this title (relating to Licensing of Radioactive Waste Processing and Storage Facilities), §289.259 of this title (relating to Licensing of Naturally Occurring Radioactive Material (NORM)), or §289.260 of this title (relating to Licensing of Uranium Recovery and Byproduct Material Disposal Facilities); or

(B) a general license acknowledgment issued in accordance with §289.251 of this title (relating to Exemptions, General Licenses, and General License Acknowledgments); or

(C) a certificate of registration for radiation machines and/or services, or sources of laser radiation, issued in accordance with §289.226 of this title (relating to Registration of Radiation Machine Use and Services), §289.230 of this title (relating to Certification of Mammography Systems and Accreditation of Mammography Facilities), a certificate of registration for dental radiation machines in accordance with §289.232 of this title (relating to Radiation Control Regulations for Dental Radiation Machines), a certificate of registration for radiation machines used in veterinary medicine in accordance with §289.233 of this title (relating to Radiation Control Regulations for Radiation Machines Used in Veterinary Medicine), or §289.301 of this title (relating to Registration and Radiation Safety Requirements for Lasers and Intense-Pulsed Light Devices); or

(2) the holder of a fixed nuclear facility construction permit or operating license issued by the United States Nuclear Regulatory Commission (NRC) in accordance with Title 10, Code of Federal Regulations, Part 50; or

(3) the operator of any other fixed nuclear facility.

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

(1) Contiguous properties--Those locations adjacent to an existing licensed or permitted area.

(2) Decontamination services--Providing deliberate operations to reduce or remove residual radioactivity from equipment, facilities, and land owned, possessed, or controlled by other persons to a level that permits release of equipment, facilities, and land for unrestricted use and/or termination of a license.

(3) Emergency planning and implementation--The development and application of those capabilities necessary for the protection of the public and the environment from the effects of an accidental or uncontrolled release of radioactive materials, including the equipping, training and periodic retraining of response personnel.

(4) Fixed nuclear facility--The following are considered fixed nuclear facilities:

(A) any nuclear reactor(s) at a single site;

(B) any facility designed or used for the assembly or disassembly of nuclear weapons; or

(C) any other facility using special nuclear material for which the agency conducts off-site environmental surveillance and/or emergency planning and implementation to protect the public health and safety or the environment.

(5) Limited manufacturer--A manufacturer/distributor of radioactive material that is not required to submit a decommissioning funding plan or an emergency plan in accordance with §289.252 of this title.

(6) Post-closure--The time period after which closure activities have been completed by the conventional mill licensee and prior to transfer of land ownership of tailings disposal sites to the State of Texas or the United States of America and termination of the license or after which confirmatory surveys have been conducted by the agency of an in-situ facility and before termination of the license or site.

(7) Processor of Radioactive Material--A manufacturer/distributor who converts normal form radioactive material into special form or a manufacturer/distributor of radioactive sealed sources.

(d) Payment of fees.

(1) Each application for a specific license, general license acknowledgement, or certificate of registration for which a fee is prescribed in subsections (e), (g), (j), or (m) of this section shall be accompanied by a nonrefundable fee equal to the appropriate fee. Each request for evaluation of a sealed source and/or device shall be accompanied by a nonrefundable fee prescribed in subsection (f) of this section. Each application for accreditation of a mammography facility shall be accompanied by a nonrefundable fee prescribed in subsection (h) of this section. Each application for an industrial radiographer certification and an industrial radiographer examination shall be accompanied by a nonrefundable fee prescribed in subsection (i) of this section.

(A) An application for a license covering more than one category of specific license shall be accompanied by the prescribed fee for the highest category and 25% of the applicable prescribed fee for each additional requested category.

(B) An application for a certificate of registration covering more than one category shall be accompanied by the prescribed fee for the highest category.

(C) No application will be accepted for filing or processed prior to payment of the full amount specified.

(2) A nonrefundable fee, in accordance with subsection (e) and (m) of this section shall be paid for each radioactive material license and/or for each general license acknowledgement. The fee shall be for the two-year term of the license or general license acknowledgement. The fee shall be paid in full on or before the last day of the expiration month and year of the license or general license acknowledgement. In the case of a single license that authorizes more than one category of use, the fee shall be the prescribed fee for the highest license category plus 25% of the applicable prescribed fee for each additional license category authorized.

(3) A nonrefundable fee, in accordance with subsection (j) of this section, shall be paid for each certificate of registration for radiation machines and/or services, or sources of laser radiation. The fee shall be for the two-year term of the certificate of registration. The fee shall be paid in full on or before the last day of the expiration month and year of the certificate of registration.

(4) In the case of a single certificate of registration that authorizes more than one category of machine/type of use, the category listed in subsection (j) of this section and assigned the higher fee will be used.

(5) An additional nonrefundable fee equal to five percent of the total fee for each specific license shall be paid with the specified fee by each holder of a specific license, excluding diagnostic nuclear medicine licensees.

(A) The fees collected by the agency in accordance with this paragraph shall be deposited to the credit of the Radiation and Perpetual Care Account, until the fees collectively total $500,000.

(B) If the balance of fees collected in accordance with this paragraph is subsequently reduced to $350,000 or less, the agency shall reinstitute assessment of the fee until the balance reaches $500,000.

(6) Each application for reciprocal recognition of an out-of-state license in accordance with §289.252(s) of this title, an out-of-state registration in accordance with §289.226 of this title, or an out-of-state laser registration in accordance with §289.301 of this title, shall be accompanied by the applicable fee, provided that no such fee has been submitted within 24 months of the date of commencement of the proposed activity.

(7) Each holder of a fixed nuclear facility construction permit or operating license or an operator of any other fixed nuclear facility shall submit an annual fee for services received. This fee shall recover for the State of Texas the actual expenses arising from environmental surveillance and emergency planning and implementation activities. Payment shall be made within 90 days following the date of invoice.

(8) Fee payments shall be in cash or by check or money order made payable to the Department of State Health Services. The payments may be made by personal delivery to the central office, Radiation Control, Department of State Health Services, 1100 West 49th Street, Austin, Texas, or mailed to Radiation Control, Department of State Health Services, 1100 West 49th Street, Austin, Texas, 78756-3189.

(9) Any applicant requesting authorization for any of the categories in subsection (e) of this section for veterinary use will be assessed the fee for the corresponding category.

(e) Schedule of fees for radioactive material licenses. The following schedule contains the fees for radioactive material licenses:

Figure: 25 TAC §289.204(e)

(f) Fee for evaluation of a sealed source and/or device.

(1) Each time a manufacturer submits a request for evaluation of a unique sealed source, one of the following fees shall be paid:

(A) for an initial evaluation, a fee of $4,626; or

(B) for an amendment requiring re-evaluation, a fee of $2,309.

(2) Each time a manufacturer submits a request for evaluation of a unique device, one of the following fees shall be paid:

(A) for an initial evaluation, a fee of $9,258; or

(B) for an amendment requiring re-evaluation, a fee of $4,632.

(3) No request for evaluation will be processed prior to payment of the full amount specified.

(g) Fees for certification of mammography systems.

(1) An application for certification of mammography systems shall be accompanied by a fee of $422 for each unit.

(2) The annual fee for mammography systems is $422 for each unit.

(h) Fees for accreditation of mammography facilities.

(1) Each application for accreditation or re-accreditation of a mammography facility shall be accompanied by a nonrefundable fee. No application will be accepted for filing or processed prior to payment of the full amount specified in paragraph (2) of this subsection.

(2) Fees for accreditation of mammography facilities are as follows.

(A) The accreditation fee for the first mammography machine is $880.

(B) The accreditation fee for each additional mammography machine is $490.

(C) The fee for re-evaluation of clinical images due to failure during the accreditation process is $270 per mammography machine.

(D) The fee for re-evaluation of phantom images due to failure during the accreditation process is $210 per machine.

(E) The fee for an additional mammography review will be based on the number of clinical image sets reviewed and the type of review.

(F) The fee for reinstatement of a mammography machine is $610.

(G) The fee for replacement of thermoluminescent dosimeters (TLD) is $70.

(H) Each facility for which a targeted clinical image review is required will be charged for actual expenses to the agency arising from the visit.

(I) Each facility for which an on-site visit due to three denials of accreditation is required will be charged for actual expenses to the agency arising from such visit.

(J) Payment of the fees in subparagraphs (H) and (I) of this paragraph shall be made within 60 days following the date of invoice.

(i) Fees for industrial radiographer certification and for radiographer certification examinations.

(1) The nonrefundable application fee for examination shall be $25 and shall be submitted to the agency with the application for examination.

(2) The nonrefundable application fee for radiographer certification shall be $100 and shall be submitted to the agency with the application for radiographer certification.

(j) Schedule of fees for certificates of registration for radiation machines, lasers, and services. The following schedule contains the fees for certificates of registration for radiation machines, lasers, and services. As of the effective date of this section, the fees for the dental radiographic only category and the veterinary category, as specified in the following schedule, are the applicable fees for those categories.

Figure: 25 TAC §289.204(j)

(k) Annual fees for environmental surveillance and emergency planning and implementation. Fees shall be set annually by the agency for each facility. Fees for fixed nuclear facilities shall be the actual expenses for environmental surveillance and emergency planning and implementation activities. Costs of activities benefiting more than one facility shall be prorated.

(l) Failure to pay prescribed fees.

(1) In any case where the agency finds that an applicant for a license or certificate of registration has failed to pay the fee prescribed in this section, the agency will not process that application until such fee is paid.

(2) In any case where the agency finds that a licensee or registrant has failed to pay a fee prescribed by this section by the due date, the license or certificate of registration expires and the agency may implement compliance procedures as provided in §289.205 of this title (relating to Hearing and Enforcement Procedures).

(3) In any case where the agency finds that a fixed nuclear facility has failed to pay fees for environmental surveillance or emergency planning and implementation within 90 days following date of invoice, the agency may issue an order to show cause why those services should not be terminated.

(m) Schedule of fees for uranium recovery and byproduct material disposal facility licenses. The following schedule contains the fees for uranium recovery and byproduct material disposal facility licenses:

Figure: 25 TAC §289.204(m)

(n) Adjustments to fees for uranium recovery and byproduct material disposal facility licenses.

(1) If additional noncontiguous uranium recovery facility sites are authorized under the same license, the appropriate fee shall be increased by 25% for each additional site for an operational year and 50% for closure only.

(2) If an authorization for disposal of byproduct material is added to a license, the appropriate fee shall be increased by 25%.

(o) One-time fee adjustments for uranium recovery and byproduct material disposal facility licenses. For the addition of the following items after an environmental assessment has been completed on a facility, a one-time fee corresponding to the item shall be paid:

(1) $28,658 for in situ wellfield on noncontiguous property;

(2) $71,651 for in situ satellite;

(3) $11,235 for wellfield on contiguous property;

(4) $50,756 for non-vacuum dryer; or

(5) $71,651 for disposal (including processing, if applicable) of byproduct material.

(p) Fees for Texas Online participation. For all applications and renewal applications, the department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

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 January 10, 2006.

TRD-200600139

Cathy Campbell

General Counsel

Department of State Health Services

Effective date: February 1, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 458-7111 x6972