TITLE 1. ADMINISTRATION

Part 2. TEXAS ETHICS COMMISSION

Chapter 8. ADVISORY OPINIONS

1 TAC §8.3

The Texas Ethics Commission proposes an amendment to §8.3, relating to the subject of an advisory opinion.

The proposed amendment to §8.3 adds §2152.064 and §2155.003 of the Government Code to the list of laws from which the commission will issue an advisory opinion.

David A. Reisman, Executive Director, has determined that for each year of the first five years that the rule is in effect, there will be fiscal implications for the state as a result of enforcing or administering the rule as proposed. The cost is undetermined as of this date. There will be no fiscal implications to local government and no local employment impact.

Mr. Reisman has also determined that for each year of the first five years the rule is in effect, the anticipated public benefit will be clarity in what is required by the law.

Mr. Reisman has also determined there will be no direct adverse effect on small businesses or micro-businesses because the rule does not apply to single businesses.

Mr. Reisman has further determined that there are no economic costs to persons required to comply with the rule.

The Texas Ethics Commission invites comments on the proposed rule from any member of the public. A written statement should be mailed or delivered to Natalia Luna Ashley, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to offer spoken comments to the commission concerning the proposed rule may do so at any commission meeting during the agenda item "Communication to the Commission from the Public" and during the public comment period at a commission meeting when the commission considers final adoption of the proposed rule. Information concerning the date, time, and location of commission meetings is available by telephoning (512) 463-5800 or, toll free, (800) 325-8506.

The amendment to §8.3 is proposed under Government Code, Chapter 571, §571.062, which authorizes the commission to adopt rules concerning the laws administered and enforced by the commission.

The proposed amendment to §8.3 affects §2152.064 and §2155.003 of the Government Code.

§8.3.Subject of an Advisory Opinion.

(a) The commission will issue a written advisory opinion on the following laws to a person qualified to make a request under §8.5 of this title (relating to Persons Eligible To Receive an Advisory Opinion):

(1) Government Code, Chapter 302 (concerning Speaker of the House of Representatives);

(2) Government Code, Chapter 303 (concerning Governor for a Day and Speaker's Reunion Day Ceremonies);

(3) Government Code, Chapter 305 (concerning Registration of Lobbyists);

(4) Government Code, Chapter 572 (concerning Personal Financial Disclosure, Standards of Conduct, and Conflict of Interest);

(5) Government Code, Chapter 2004 (concerning Representation Before State Agencies);

(6) Local Government Code, Chapter 159, Subchapter C, in connection with a county judicial officer, as defined by Section 159.051, Local Government Code, who elects to file a financial statement with the commission;

(7) Election Code, Title 15 (concerning Regulating Political Funds and Campaigns);

(8) Penal Code, Chapter 36 (concerning Bribery and Corrupt Influence);

(9) Penal Code, Chapter 39 (concerning Abuse of Office);

(10) Government Code, §2152.064 (concerning Conflict of Interest in Certain Transactions); and

(11) Government Code, §2155.003 (concerning Conflict of Interest).

(b) The commission will not issue an advisory opinion that concerns the subject matter of pending litigation known to the commission.

(c) An advisory opinion cannot resolve a disputed question of fact.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706543

Natalia Luna Ashley

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: February 3, 2008

For further information, please call: (512) 463-5800


Chapter 20. REPORTING POLITICAL CONTRIBUTIONS AND EXPENDITURES

Subchapter A. GENERAL RULES

1 TAC §20.13, §20.29

The Texas Ethics Commission proposes the amendments to §20.13 and §20.29, relating to the reporting of information from out-of-state political committees.

Current §20.13(d) prompts a filer to look at §22.7 (Contribution from Out-Of-State Committee) for additional reporting requirements regarding the acceptance of a contribution from an out-of-state political committee. The proposed amendment prompts the filer to also look at §20.29 (Information About Out-of-State Committees), which contains additional reporting requirements regarding these types of contributions.

Current §20.29(c) provides that the timeliness of paper documents concerning out-of-state political committees is governed by the postmark rule of Election Code §251.007. The proposed amendment provides that the timeliness of these documents is governed by the filing deadline applicable to a report for which a document is filed. In other words, a document submitted concerning a pre-election report would be required to be received by the commission by the applicable deadline for that report. Effective September 1, 2007, a report due 30 days before an election and a report due 8 days before an election (including a runoff election) must be received by the filing authority no later than the report due date.

David A. Reisman, Executive Director, has determined that for each year of the first five years that the rules are in effect there will be no fiscal implication for the state and no fiscal implication for local government as a result of enforcing or administering the rules as proposed. Mr. Reisman has also determined that the rules will have no local employment impact.

Mr. Reisman has also determined that for each year of the first five years the rules are in effect, the anticipated public benefit will be clarity in what is required by the law.

Mr. Reisman has also determined there will be no direct adverse effect on small businesses or micro-businesses because the rules do not apply to single businesses.

Mr. Reisman has further determined that there are no economic costs to persons required to comply with the rules.

The Texas Ethics Commission invites comments on the proposed rules from any member of the public. A written statement should be mailed or delivered to Natalia Luna Ashley, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to offer spoken comments to the commission concerning the proposed rules may do so at any commission meeting during the agenda item "Communication to the Commission from the Public" and during the public comment period at a commission meeting when the commission considers final adoption of the proposed rules. Information concerning the date, time, and location of commission meetings is available by telephoning (512) 463-5800 or, toll free, (800) 325-8506.

The proposed amendments to §20.13 and §20.29 are proposed under Government Code, Chapter 571, §571.062, which authorizes the commission to adopt rules concerning the laws administered and enforced by the commission.

The proposed amendments to §20.13 and §20.19 affects Chapter 254, Election Code.

§20.13.Out-of-State Committees.

(a) An out-of-state political committee is required to file reports for each reporting period under Subchapter F, Chapter 254, Election Code, in which the out-of-state political committee accepts political contributions or makes political expenditures in connection with a state or local election in Texas. Section 254.1581, Election Code, applies to a report required to be filed under this section. An out-of-state political committee that files reports electronically in another jurisdiction may comply with §254.1581, Election Code, by sending a letter to the commission within the time prescribed by that section specifying in detail where the electronic report may be found on the website of the agency with which the out-of-state political committee is required to file its reports. An out-of-state political committee that does not file reports electronically in another jurisdiction may comply with §254.1581, Election Code, by sending a copy of the cover sheets of the report and a copy of each page on which the committee reports a contribution or expenditure accepted or made in connection with a state or local election in Texas.

(b) An out-of-state political committee that files an appointment of campaign treasurer with a Texas filing authority is required to file reports under this title.

(c) A political committee must determine if it is an "out-of-state political committee" each time the political committee plans to make a political expenditure in Texas (other than an expenditure in connection with a campaign for a federal office or an expenditure for a federal officeholder). The determination is made as follows.

(1) Before making the expenditure (other than an expenditure in connection with a campaign for a federal office or an expenditure for a federal officeholder), the committee must calculate its total political expenditures made during the 12 months immediately preceding the date of the planned expenditure. This total does not include the planned political expenditure triggering the calculation requirement.

(2) If 80% or more of the total political expenditures are in connection with elections not voted on in Texas, the committee is an out-of-state committee.

(3) If less than 80% of the total political expenditures are in connection with elections not voted on in Texas, the committee is no longer an out-of-state committee.

(d) Section 20.29 (relating to Information About Out-of-State Committees) and §22.7 [ Section 22.7 of this title ] (relating to Contribution from Out-of-State Committee) of this title contain [ contains ] other provisions regarding requirements applicable to recipients of contributions from out-of-state political committees.

(e) An out-of-state political committee planning an expenditure in connection with a campaign for federal office voted on in Texas is not required to make the determination required under subsection (c) of this section. However, an expenditure in connection with a campaign for federal office voted on in Texas must be included in the calculation set out in subsection (c) of this section for an out-of-state committee making an expenditure in connection with a non-federal campaign voted on in Texas.

§20.29.Information About Out-of-State Committees.

(a) A person who files a report with the commission by electronic transfer and who accepts political contributions from an out-of-state political committee required to file its statement of organization with the Federal Election Commission shall either:

(1) enter the out-of-state committee's federal PAC identification number in the appropriate place on the report; or

(2) timely file a certified copy of the out-of-state committee's statement of organization that is filed with the Federal Election Commission.

(b) A person who files a report with the commission by electronic transfer and who accepts political contributions from an out-of-state political committee that is not required to file its statement of organization with the Federal Elections Commission shall either:

(1) enter the information required by §253.032(a)(1) or (e)(1), Election Code, as applicable, on the report filed by electronic transfer; or

(2) timely file a paper copy of the information required by §253.032(a)(1) or (e)(1), Election Code, as applicable.

(c) Except as provided by subsection (d) of this section, §251.007, [ Section 251.007, ] Election Code, applies to a document filed under subsection (a)(2) or (b)(2) of this section.

(d) A document filed under subsection (a)(2) or (b)(2) of this section for a pre-election report is timely filed if it is received by the commission no later than the report due date. A pre-election report includes reports due 30-days and 8-days before an election, reports due before a runoff election, and special reports due before an election.

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

Filed with the Office of the Secretary of State on December 19, 2007.

TRD-200706492

Natalia Luna Ashley

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: February 3, 2008

For further information, please call: (512) 463-5800


Subchapter C. REPORTING REQUIREMENTS FOR A CANDIDATE

1 TAC §20.220

The Texas Ethics Commission proposes new §20.220, relating to additional disclosure requirements for the Texas Comptroller of Public Accounts.

The proposed new §20.220 addresses the requirement in House Bill 3560, 80th Legislature, that the Texas Comptroller of Public Accounts disclose to the Texas Ethics Commission a contribution from a vendor.

The new §20.220 is proposed to address §2155.003(e) of the Government Code requiring the Texas Comptroller of Public Accounts (comptroller) to report to the Texas Ethics Commission a campaign contribution from a vendor that bids on or receives a contract under the comptroller's purchasing authority. Subsection (a) of the rule defines the term "vendor."

Subsection (b) provides that the comptroller, or specific-purpose committee created to support the comptroller, is required to disclose campaign contributions of $500 or more from a vendor during the reporting period or from a political committee directly established, administered or controlled by a vendor during the reporting period. The comptroller or specific-purpose committee created to support the comptroller, must also report certain other required information.

Subsection (c) provides a "best efforts" defense to the comptroller, or specific-purpose committee created to support the comptroller, providing that the comptroller or specific-purpose committee request the information required by subsection (b) in writing, or if not in writing, orally with certain additional requirements.

Subsection (d) provides that the comptroller, or specific-purpose committee created to support the comptroller, report certain additional information that is not provided by the person making the political contribution and that is in the comptroller's or committee's records or previous reports filed by the comptroller or committee.

Subsection (e) provides that the comptroller, or specific-purpose committee created to support the comptroller, report certain additional information received after the filing deadline on the next required report.

Subsection (f) provides that the disclosure under subsection (b) applies only to a contributor who was a vendor or a political committee directly established, administered, or controlled by a vendor on or after September 1, 2007.

David A. Reisman, Executive Director, has determined that for each year of the first five years that the rule is in effect, there will be fiscal implications for the state as a result of enforcing or administering the rule as proposed. The cost is undetermined as of this date. There will be no fiscal implications to local government and no local employment impact.

Mr. Reisman has also determined that for each year of the first five years the rule is in effect, the anticipated public benefit will be clarity in what is required by the law.

Mr. Reisman has also determined there will be no direct adverse effect on small businesses or micro-businesses because the rule does not apply to single businesses.

Mr. Reisman has further determined that there are no economic costs to persons required to comply with the rule.

The Texas Ethics Commission invites comments on the proposed rule from any member of the public. A written statement should be mailed or delivered to Natalia Luna Ashley, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to offer spoken comments to the commission concerning the proposed rule may do so at any commission meeting during the agenda item "Communication to the Commission from the Public" and during the public comment period at a commission meeting when the commission considers final adoption of the proposed rule. Information concerning the date, time, and location of commission meetings is available by telephoning (512) 463-5800 or, toll free, (800) 325-8506.

The proposed new §20.220 is proposed under Government Code, Chapter 571, §571.062, which authorizes the commission to adopt rules concerning the laws administered and enforced by the commission.

The proposed new §20.220 affects §2155.003 of the Government Code.

§20.220.Additional Disclosure for the Texas Comptroller of Public Accounts.

(a) For purposes of this section and §2155.003(e) of the Government Code, the term "vendor" means:

(1) a person, who during the comptroller's term of office, bids on or receives a contract under the comptroller's purchasing authority that was transferred to the comptroller by §2151.004 of the Government Code; and

(2) an employee or agent of a person described by subsection (a)(1) of this section who communicates directly with the chief clerk, or an employee of the Texas Comptroller of Public Accounts who exercises discretion in connection with the vendor's bid or contract, about a bid or contract.

(b) Each report filed by the comptroller or a specific-purpose committee created to support the comptroller, shall include:

(1) for each vendor whose aggregate campaign contributions equal or exceed $500 during the reporting period, a notation that:

(A) the contributor was a vendor during the reporting period or during the 12 month period preceding the last day covered by the report; and

(B) if the vendor is an individual, includes the name of the entity that employs or that is represented by the individual; and

(2) for each political committee directly established, administered, or controlled by a vendor whose aggregate campaign contributions equal or exceed $500 during the reporting period, a notation that the contributor was a political committee directly established, administered, or controlled by a vendor during the reporting period or during the 12 month period preceding the last day covered by the report.

(c) The comptroller, or a specific-purpose committee created to support the comptroller, is considered to be in compliance with this section if :

(1) each written solicitation for a campaign contribution includes a request for the information required by subsection (b) of this section; and

(2) for each contribution that is accepted for which the information required by this section is not provided at least one oral or written request is made for the missing information. A request under this subsection:

(A) must be made not later than the 30th day after the date the contribution is received;

(B) must include a clear and conspicuous statement requesting the information required by subsection (b) of this section;

(C) if made orally, must be documented in writing; and

(D) may not be made in conjunction with a solicitation for an additional campaign contribution.

(d) The comptroller, or a specific-purpose committee created to support the comptroller, must report the information required by subsection (b) of this section that is not provided by the person making the political contribution and that is in the comptroller's or committee's records of political contributions or previous reports filed by the comptroller or committee.

(e) If the comptroller, or a specific-purpose committee created to support the comptroller, receives the information required by this section after the filing deadline for the report on which the contribution is reported the comptroller or committee must include the missing information on the next required campaign finance report.

(f) The disclosure required under subsection (b) of this section applies only to a contributor who was a vendor or a political committee directly established, administered, or controlled by a vendor on or after September 1, 2007.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706542

Natalia Luna Ashley

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: February 3, 2008

For further information, please call: (512) 463-5800


Chapter 45. CONFLICTS OF INTEREST

1 TAC §§45.1, 45.3, 45.5, 45.7, 45.9

The Texas Ethics Commission proposes new §§45.1, 45.3, 45.5, 45.7, and 45.9, relating to the conflicts of interest requirements for the chief clerk or any other employee of the Texas Comptroller of Public Accounts and a Texas Facilities Commission member, employee, or appointee.

House Bill 3560, 80th Legislature, transfers to the Texas Comptroller of Public Accounts duties of the Texas Building and Procurement Commission that do not primarily concern state facilities and renames the commission the Texas Facilities Commission.

The proposed new rules under Chapter 45 (Conflicts of Interest) are added to address the conflict of interest portions of §2155.003 and §2152.064 of the Government Code. The new §45.1 is added to state that Chapter 45 applies to §2155.003 and §2152.064 of the Government Code. The new §45.3 is added to define relevant terms used in the conflict of interest provisions of §2155.003 of the Government Code at issue that relate to the comptroller. The new §45.5 is added to define relevant terms used in the conflict of interest provisions of §2152.064 of the Government Code at issue that relate to the Texas Facilities Commission.

The new §45.7 is added for guidance on the issue of rebates as applied to the conflict of interest provisions of §2155.003 of the Government Code. Subsection (a) defines the term "rebate;" subsection (b) prescribes when the chief clerk or employee of the comptroller is not prohibited from accepting a rebate.

The new §45.9 is added for guidance on the issue of rebates as applied to the provisions of §2152.064 of the Government Code. Subsection (a) defines the term "rebate;" subsection (b) prescribes when an employee, appointee, or commission member of the Texas Facilities Commission is not prohibited from accepting a rebate.

David A. Reisman, Executive Director, has determined that for each year of the first five years that the rules are in effect, there will be fiscal implications for the state as a result of enforcing or administering the rules as proposed. The cost is undetermined as of this date. There will be no fiscal implications to local government and no local employment impact.

Mr. Reisman has also determined that for each year of the first five years the rules are in effect, the anticipated public benefit will be clarity in what is required by the law.

Mr. Reisman has also determined there will be no direct adverse effect on small businesses or micro-businesses because the rules do not apply to single businesses.

Mr. Reisman has further determined that there are no economic costs to persons required to comply with the rules.

The Texas Ethics Commission invites comments on the proposed rules from any member of the public. A written statement should be mailed or delivered to Natalia Luna Ashley, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to offer spoken comments to the commission concerning the proposed rules may do so at any commission meeting during the agenda item "Communication to the Commission from the Public" and during the public comment period at a commission meeting when the commission considers final adoption of the proposed rules. Information concerning the date, time, and location of commission meetings is available by telephoning (512) 463-5800 or, toll free, (800) 325-8506.

The proposed new §§45.1, 45.3, 45.5, 45.7, and 45.9 are proposed under Government Code, Chapter 571, §571.062, which authorizes the commission to adopt rules concerning the laws administered and enforced by the commission.

The proposed new §§45.1, 45.3, 45.5, 45.7, and 45.9 affects §2152.064 and §2155.003 of the Government Code.

§45.1.Application.

This chapter applies to §2152.064 and §2155.003 of the Government Code.

§45.3.Definitions.

(a) Section 2155.003 of the Government Code applies to:

(1) the chief clerk; and

(2) an employee who exercises discretion in connection with a contract, payment, claim, or other pecuniary transaction under the comptroller's purchasing authority.

(b) Under §2155.003 of the Government Code the following words and terms shall have the following meanings:

(1) "Chief clerk" and "employee" includes the spouse or dependent child of the chief clerk or employee.

(2) "Have an interest in" or "in any manner be connected with," is limited to the purchasing authority that was transferred to the comptroller by §2151.004 of the Government Code, and means a right, share, equitable or legal claim to, or pecuniary interest in, a contract or bid but does not include ownership of shares in a publicly traded mutual fund or similar investment vehicle in which the person does not exercise any discretion regarding the investment of the assets of the fund or other investment vehicle.

(3) "Value," "reward," and "compensation" includes anything with a monetary value of $5 or more.

§45.5.Definitions.

(a) Section 2152.064 of the Government Code applies to:

(1) a commission member and appointee; and

(2) to an employee who exercises discretion in connection with a contract, payment, claim, or other pecuniary transaction under §2152.064 of the Government Code, or in connection with state surplus or salvage property.

(b) Under §2152.064 of the Government Code the following words and terms shall have the following meanings:

(1) "Commission member," "appointee," and "employee" includes the spouse or dependent child of a commission member, appointee, or employee.

(2) "Have an interest in" or "in any manner be connected with," means a right, share, equitable or legal claim to, or pecuniary interest in, a contract or bid, or a recipient of state surplus or salvage property under control of the commission, but does not include ownership of shares in a publicly traded mutual fund or similar investment vehicle in which the person does not exercise any discretion regarding the investment of the assets of the fund or other investment vehicle.

(3) "Value," "reward," and "compensation" includes anything with a monetary value of $5 or more.

§45.7.Rebates.

(a) The term "rebate" includes a discount, return, or refund of money.

(b) The chief clerk or an employee of the comptroller is not prohibited from accepting a rebate that is offered or given on the same terms to all state employees or to the general public.

§45.9.Rebates.

(a) The term "rebate" includes a discount, return, or refund of money.

(b) An employee, appointee, or commission member of the Texas Facilities Commission is not prohibited from accepting a rebate that is offered or given on the same terms to all state employees or to the general public.

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

Filed with the Office of the Secretary of State on December 21, 2007.

TRD-200706572

Natalia Luna Ashley

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: February 3, 2008

For further information, please call: (512) 463-5800


Part 3. OFFICE OF THE ATTORNEY GENERAL

Chapter 57. RENTAL-PURCHASE ACT COMPLIANCE

1 TAC §57.1

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

The Office of the Attorney General ("OAG") proposes the repeal of 1 TAC Chapter 57, §57.1, concerning Rental-Purchase Act Compliance.

The OAG published Notice of Intent to conduct a Rule Review of Chapter 57 in the September 21, 2007, issue of the Texas Register (32 TexReg 6564). The review assessed whether the reasons for adopting the rule continue to exist and no public comments were received. As a result of the review, this rule is now proposed for repeal because the OAG has determined that the reasons for adopting the rule no longer exist.

Chapter 57 is comprised of §57.1 and merely provides notice that a form rental-purchase agreement is available from the Division Chief of the OAG's Consumer Protection Division at the OAG's Austin address. Although Texas Business and Commerce Code §35.72(b) continues to require the OAG to provide a form agreement that may be used to satisfy the requirements of Texas Business and Commerce Code §§35.71 - 35.74 (the Rental-Purchase Act), there is no statutory requirement for the OAG to adopt or maintain administrative rules relating to the availability of the form agreement.

An approved form rental-purchase agreement that may be used to satisfy the requirements of the Rental-Purchase Act will continue to be available from the Division Chief of the OAG's Consumer Protection Division at 300 W. 15th Street, Austin, Texas 78701. The form agreement will also be available to the public in a downloadable format on the agency web site at http://www.oag.state.tx.us/consumer/consumer.shtml.

Paul Carmona, Division Chief of the OAG's Consumer Protection Division, has determined that for each year of the first five years following the repeal of Chapter 57, there will be no foreseeable fiscal implications for state government or for local government as a result of the repeal.

Mr. Carmona has also determined that during the first five-year period following the repeal of Chapter 57, the public will benefit from increased efficiency of government and agency operations as the result of repealing this administrative rule from the Texas Administrative Code. Making the form agreement available on the OAG's web site is an adequate, logical and readily accessible means of providing the form agreement to persons required to comply with the requirements of the Rental-Purchase Act. Further, he has determined that for each year of the first five years following the repeal of Chapter 57, there will be no economic cost to persons required to comply with the requirements of the Rental-Purchase Act. Finally, Mr. Carmona has determined that the repeal of Chapter 57 will have no adverse effect on small business or micro-business or local employment.

Written comments on the proposal may be submitted for 30 days following the publication of this notice to Paul Carmona, Division Chief, Consumer Protection Division, Office of the Attorney General, P.O. Box 12548, Austin, Texas 78711-2548, (512) 463-2185 or by e-mail to paul.carmona@oag.state.tx.us.

The repeal is proposed because the reasons for adopting Chapter 57 no longer exist, the OAG is both authorized and required by Government Code §2001.039(c) to repeal the rule.

No other codes, statutes, or articles are affected by this proposal.

§57.1.Rental Purchase Form Agreement.

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

Filed with the Office of the Secretary of State on December 19, 2007.

TRD-200706508

Stacey Napier

Deputy Attorney General

Office of the Attorney General

Earliest possible date of adoption: February 3, 2008

For information regarding this publication, you may contact Lauri Saathoff, Agency Liaison, at (512) 463-2096.


Chapter 58. PHYSICIAN JOINT NEGOTIATION

The Office of the Attorney General ("OAG") proposes the repeal of 1 TAC Chapter 58, Subchapter A, §§58.1 - 58.6; Subchapter B, §§58.11 - 58.15; Subchapter C, §§58.21 - 58.26; Subchapter D, §§58.31 - 58.33; Subchapter E, §58.41 and §58.42; and Subchapter F, §§58.51 - 58.53; concerning Physician Joint Negotiation.

The OAG published Notice of Intent to conduct a Rule Review of Chapter 58 in the September 21, 2007, issue of the Texas Register (32 TexReg 6564). The review assessed whether the reasons for adopting the rules continue to exist. No comments were received during the review. As a result of this review, Chapter 58 is now proposed for repeal because the OAG has determined that the reasons for adopting the rules no longer exist.

The Chapter 58 rules, under which competing physicians could jointly negotiate contracts with health benefit plans, were adopted by the OAG pursuant to authority granted under the prior provisions of the Insurance Code, Articles 29.11 and 29.13. Chapter 29 of the Insurance Code expired by its own terms on September 1, 2007 pursuant to the former Article 29.14; therefore, Chapter 58 is being repealed.

Mark Tobey, Division Chief of the OAG’s Antitrust and Civil Medicaid Fraud Division, has determined that, during the first five-year period following the proposed repeal of Chapter 58, there will be no fiscal implications for state government or for local government as a result of the adopted repeal.

Mr. Tobey has also determined that, during the first five-year period following the proposed repeal of Chapter 58, the public will benefit from the increased efficiency of government and agency operations because agency resources will no longer be required to support the physician joint negotiations formerly contemplated by the expired provisions of the Insurance Code. Further, he has determined that, for each of the first five years following the repeal of Chapter 58, there will be no economic cost to persons formerly required to comply with the provisions of the former rules. Finally, Mr. Tobey has determined that the repeal of Chapter 58 will have no adverse effect on small business or micro-business or local employment.

Written comments on the proposal may be submitted for 30 days following the publication of this notice in the Texas Register to Mark Tobey, Division Chief, Antitrust & Civil Medicaid Fraud Division, Office of the Attorney General, P.O. Box 12548, Austin, Texas 78711-2548, (512) 463-1262, or by e-mail at mark.tobey@oag.state.tx.us.

Subchapter A. GENERAL

1 TAC §§58.1 - 58.6

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

The repeal is proposed because the reasons for adopting Chapter 58 no longer exist, the OAG is both authorized and required by Government Code §2001.039(c) to repeal the rules in their entirety.

No other codes, statutes, or rules are affected by this proposal.

§58.1.Purpose and Scope.

§58.2.Effect of Rules.

§58.3.Definitions.

§58.4.Fees.

§58.5.Public Disclosure and Use of Submitted Information.

§58.6.Podiatric Physicians.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706518

Stacey Napier

Deputy Attorney General

Office of the Attorney General

Earliest possible date of adoption: February 3, 2008

For information regarding this publication, you may contact Lauri Saathoff, Agency Liaison, at (512) 463-2096.


Subchapter B. APPLICATION REQUIREMENTS

1 TAC §§58.11 - 58.15

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

The repeal is proposed because the reasons for adopting Chapter 58 no longer exist, the OAG is both authorized and required by Government Code, §2001.039(c) to repeal the rules in their entirety.

No other codes, statutes, or rules are affected by this proposal.

§58.11.Applications.

§58.12.Contents of Application.

§58.13.Fee-Related Negotiations.

§58.14.Attestations.

§58.15.Requests for Additional Information.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706519

Stacey Napier

Deputy Attorney General

Office of the Attorney General

Earliest possible date of adoption: February 3, 2008

For information regarding this publication, you may contact Lauri Saathoff, Agency Liaison, at (512) 463-2096.


Subchapter C. REVIEW OF APPLICATION

1 TAC §§58.21 - 58.26

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

The repeal is proposed because the reasons for adopting Chapter 58 no longer exist, the OAG is both authorized and required by Government Code, §2001.039(c), to repeal the rules in their entirety.

No other codes, statutes, or rules are affected by this proposal.

§58.21.Complete Filing.

§58.22.Meetings With Staff.

§58.23.Full Disclosure.

§58.24.Attorney General's Investigation.

§58.25.Withdrawal of Application.

§58.26.Written Authorization Required.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706520

Stacey Napier

Deputy Attorney General

Office of the Attorney General

Earliest possible date of adoption: February 3, 2008

For information regarding this publication, you may contact Lauri Saathoff, Agency Liaison, at (512) 463-2096.


Subchapter D. REVIEW OF PROPOSED CONTRACTS

1 TAC §§58.31 - 58.33

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

The repeal is proposed because the reasons for adopting Chapter 58 no longer exist, the OAG is both authorized and required by Government Code, §2001.039(c), to repeal the rules in their entirety.

No other codes, statutes, or rules are affected by this proposal.

§58.31.Filing Requirements for Proposed Contracts.

§58.32.Contents of Filing for Proposed Contracts.

§58.33.Written Authorization Required.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706521

Stacey Napier

Deputy Attorney General

Office of the Attorney General

Earliest possible date of adoption: February 3, 2008

For information regarding this publication, you may contact Lauri Saathoff, Agency Liaison, at (512) 463-2096.


Subchapter E. REMEDIAL MEASURES

1 TAC §58.41, §58.42

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

The repeal is proposed because the reasons for adopting Chapter 58 no longer exist, the OAG is both authorized and required by Government Code, §2001.039(c), to repeal the rules in their entirety.

No other codes, statutes, or rules are affected by this proposal.

§58.41.Time for Re-Submission.

§58.42.Review of Remedial Actions.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706522

Stacey Napier

Deputy Attorney General

Office of the Attorney General

Earliest possible date of adoption: February 3, 2008

For information regarding this publication, you may contact Lauri Saathoff, Agency Liaison, at (512) 463-2096.


Subchapter F. SUBSEQUENT NEGOTIATIONS AND CONTRACT MODIFICATIONS

1 TAC §§58.51 - 58.53

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

The repeal is proposed because the reasons for adopting Chapter 58 no longer exist, the OAG is both authorized and required by Government Code, §2001.039(c), to repeal the rules in their entirety.

No other codes, statutes, or rules are affected by this proposal.

§58.51.Resuming Joint Negotiations After a Failed Negotiation.

§58.52.Joint Negotiations to Modify an Approved Contract.

§58.53.Review of Contracts Negotiated Under This Subchapter.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706523

Stacey Napier

Deputy Attorney General

Office of the Attorney General

Earliest possible date of adoption: February 3, 2008

For information regarding this publication, you may contact Lauri Saathoff, Agency Liaison, at (512) 463-2096.


Part 4. OFFICE OF THE SECRETARY OF STATE

Chapter 81. ELECTIONS

Subchapter I. IMPLEMENTATION OF THE HELP AMERICA VOTE ACT OF 2002

1 TAC §81.177

The Office of the Secretary of State, Elections Division, proposes new §81.177, concerning the process to approve and issue a voter registration certificate to a voter applicant whose Texas driver's license number or personal identification number as issued by the Texas Department of Public Safety or whose federal Social Security number cannot be verified by the Office of the Secretary of State. The federal Help America Vote Act of 2002, 42 U.S.C. §15301, requires that the state verify the driver's license number or last four digits of the social security number provided by all voter registration applicants who apply to register to vote beginning January 1, 2006. State law adopted this federal requirement in §13.072 of the Texas Election Code. However, federal and state law do not directly address the process to be followed when one of the above identification numbers cannot be verified by the state. Section 81.177 would clarify the procedures to follow in this situation and would ensure a single, uniform practice across the state.

Proposed new §81.177 would require that a voter registration applicant, whose identifying numbers could not be verified by the Office of the Secretary of State, would be approved for voter registration and issued a voter registration certificate number by the state. Voters in this category would be identified as having to provide a permissible form of identification when they presented themselves to vote in person or by mail. The official list of registered voters would need to be annotated with the names of voters who would be required to provide identification. In addition, voters who indicated on the voter registration application that they do not have the requested identifying numbers, would also be approved for voter registration, but would similarly be required to provide identification when they presented themselves for voting in person or by mail.

Proposed new §81.177 is necessary to ensure uniform processing of voter registration applications throughout the state.

Ann McGeehan, Director of Elections, has determined that for the first five-year period the adoption is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the adoption.

Ms. McGeehan has also determined that for each year of the first five years the new rule is in effect, the public benefit anticipated as a result of enforcing the new rule will be to provide a single, uniform practice for handling voters whose identifications cannot be verified or voters who do not have certain identification. There will be no effect on small businesses.

Written comments on the proposed new rule may be submitted to Ann McGeehan, Director of Elections, Office of the Secretary of State, P.O. Box 12060, Austin, Texas 78711-2060. Before adopting the rule, the Secretary of State will consider all comments received before 12:00 noon, Monday, February 4, 2008.

The new rule is proposed under the Texas Election Code, §31.003 and §31.010, which provide the Office of the Secretary of State with the authority to obtain and maintain uniformity in the application, interpretation, and operation of provisions under the Texas Election Code and other election laws and to implement the federal Help America Vote Act.

The rule affects no other code.

§81.177.Registration Procedure for Voters Who Fail to Provide Required Identification Numbers.

(a) The voter registrar shall approve the application of an applicant who otherwise meets the qualifications for registration but states on the application that the applicant has not been issued an identification number described by Texas Election Code §13.002(c)(8). The registrar shall mark the list of registered voters with an annotation indicating that the voter whose application is approved under this subsection must provide a document or a copy of a document described by Texas Election Code, §63.0101 the first time the voter seeks to vote by appearing for voting in person or applying for a ballot to be voted by mail.

(b) If the secretary of state is unable to verify the applicant's Texas driver's license number, the number of a personal identification card issued to the applicant by the Department of Public Safety, or the last four digits of the applicant's social security number, the voter registrar shall approve the application and mark the list of registered voters with an annotation indicating that the voter whose application is approved under this subsection must provide a document or a copy of a document described by Texas Election Code §63.0101 the first time the voter seeks to vote. The identification number provided on the voter's application is retained with the voter's record.

(c) Each original and supplemental list of registered voters must identify each voter, who failed to provide an identification number described by Texas Election Code §13.002(c)(8) and whose identification number was not able to be verified by the secretary of state, with an annotation indicating that the voter must provide a document or a copy of a document described by Texas Election Code §63.0101 the first time the voter seeks to vote in person or by mail.

(d) The voter registrar shall remove the identification notation from the voter's record after the voter has voted the first time and provided the appropriate identification.

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

Filed with the Office of the Secretary of State on December 20, 2007.

TRD-200706550

Ann McGeehan

Director of Elections

Office of the Secretary of State

Earliest possible date of adoption: February 3, 2008

For further information, please call: (512) 463-5650