Proposed Sections
Before an agency may permanently adopt a new or amended section, or repeal an 
existing section, a proposal detailing the action must be published in the Texas 
Register at least 30 days before any action may be taken. The 30-day time period 
gives interested persons an opportunity to review and make oral or written 
comments on the section. Also, in the case of substantive sections, a public 
hearing must be granted if requested by at least 25 persons, a governmental 
subdivision or agency, or an association having at least 25 members.
Symbology in proposed amendments. New language added to an existing section is 
indicated by the use of bold text. [Brackets] indicate deletion of existing 
material within a section.
TITLE 4. AGRICULTURE
Part II. Texas Animal Health Commission
Chapter 35. Brucellosis
Subchapter A. Eradication of Brucellosis in Cattle
4 TAC sec.35.2
The Texas Animal Health Commission proposes an amendment to sec.35.2, concerning 
general requirements.
The amendment is necessary to provide that a test document approved by the 
commission, such as Forms 4-33, 4-54, or a health certificate, must accompany 
all test-eligible cattle that are sold at the market (unless the cattle were 
tested within 30 days prior to coming to the market).
Mr. Bill Hayden, director of administration, has determined that for the first 
five-year period the section is in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
section.
Mr. Robert L. Daniel, director of program records, has determined that for each 
year of the first five years the section is in effect the public benefit 
anticipated as a result of enforcing the section will be to provide the general 
public an option of using forms other than the Form 4-33 as a recognized test 
document for cattle entering a livestock market. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the section as proposed.
Comments on the proposal may be submitted to Jo Anne Connor, Texas Animal Health 
Commission, P.O. Box 12966, Austin, Texas 78711.
The amendment is proposed under the Agriculture Code, Texas Civil Statutes, 
Chapter 161 and 163, which provides the commission with the authority to adopt 
rules and set forth the duties of this commission to control disease.
sec.35.2. General Requirements.
(a)-(d) (No change.)
(e) Requirements of a market test.
(1) All test-eligible cattle shall be tested unless they were tested within the 
previous 30 days and:
(A) are accompanied by a <nl>test document approved by the commission <ol> 
[completed 4-33 test chart]; and
(B) (No change.)
(C) either identified with legible individual brand, bangle tag, chalk number, 
or backtag with this identification shown on <nl>a test document <ol> [4-33]; or 
each animal <nl>examined<ol> [chuted] so that the eartag can be matched 
<nl>to<ol> [on] the [4-33] test <nl>document<ol> [chart].
(2)-(7) (No change.)
(f)-(u) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 25, 1991.
TRD-9113334
Terry Beals, DVM
Executive Director
Texas Animal Health Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 479-6697
       
Chapter 51. Interstate Shows and Fairs
4 TAC sec.51.1
The Texas Animal Health Commission proposes an amendment to sec.51.1, concerning 
definitions.
The amendment is necessary to clarify that when livestock and poultry from other 
states enter a Texas show, fair, or exhibition and are held in common facilities 
with Texas origin livestock and poultry of the same species the show is 
considered an interstate show. An intrastate show, fair, or exhibition requires 
that Texas livestock and poultry of the same species entering the show fair or 
exhibition must be housed and exhibited separate and apart from livestock and 
poultry which have entered from out-of-state.
Bill Hayden, director of administration, has determined that for the first five-
year period the section is in effect there will be no fiscal implications for 
state or local government as a result of enforcing and administering the 
section.
Robert L. Daniel, director of program records, has determined that for each of 
the first five years the new section is in effect the public benefit anticipated 
as a result of enforcing the section will be to provide the general public with 
clarification as to the intent of the commission for Texas livestock and poultry 
which are to be entered in interstate or intrastate shows, fairs, or 
exhibitions. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the section 
as proposed.
Comments on the proposal may be submitted to Jo Anne Conner, Texas Animal Health 
Commission, P.O. Box 12966, Austin, Texas 78711.
The amendment is proposed under the Agriculture Code, Texas Civil Statutes, 
Chapter 161, which provides the commission with the authority to adopt rules and 
set forth the duties of this commission to control disease.
sec.51.1. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise.
 Interstate show, fair, or exhibition-A show, fair, or exhibition that permits 
livestock and poultry from other states to enter for show or exhibition <nl>and 
be held in common facilities with Texas origin livestock and poultry of the same 
species.
 Intrastate show, fair, or exhibition-A show, fair, or exhibition that 
<nl>requires Texas<ol> [permits only] livestock and poultry <nl>of the same 
species to be housed and exhibited separate and apart from livestock and poultry 
from out-of-state<ol> [from Texas to enter for show or exhibition).
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 25, 1991.
TRD-9113335
Terry Beals, DVM
Executive Director
Texas Animal Health Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 479-6697
       
4 TAC sec.51.2
The Texas Animal Health Commission proposes an amendment to sec.51.2, concerning 
general requirements.
The amendment is necessary to clarify the intent for entry of other livestock 
and poultry of in-state origin into shows, fairs, and exhibitions. These animals 
must meet the same requirements as those entering from out-of-state; they must 
be accompanied by a certificate of veterinary inspection when entering shows, 
fairs, and exhibitions that have been determined to be interstate.
Bill Hayden, director of administration, has determined that for the first five-
year period the section is in effect there will be no fiscal implications for 
state or local government as a result of enforcing and administering the 
section.
Robert L. Daniel, director of program records, has determined that for each of 
the first five years the new section is in effect the public benefit anticipated 
as a result of enforcing the section will be to provide the general public with 
clarification as to the intent of the commission for other Texas livestock and 
poultry which are to be entered in shows, fairs, or exhibitions determined to be 
interstate. There will be no effect on small businesses. There is no anticipated 
economic cost to persons who are required to comply with the section as 
proposed.
Comments on the proposal may be submitted to Jo Anne Conner, Texas Animal Health 
Commission, P.O. Box 12966, Austin, Texas 78711.
The amendment is proposed under the Agriculture Code, Texas Civil Statutes, 
Chapter 161, which provides the commission with the authority to adopt rules and 
set forth the duties of this commission to control disease.
sec.51.2. General Requirements.
(a)-(c) (No change.)
(d) Entering shows, fairs, and exhibitions.
(1) (No change.)
(2) In-state origin.
(A)-(B) (No change.)
(C) Other livestock and poultry. Shall meet the same requirements as for those 
entering from out-of-state and be accompanied by a certificate of veterinary 
inspection when entering shows, fairs, and exhibitions that <nl>are determined 
to be interstate<ol> [admit livestock and poultry from out-of-state (interstate 
shows)]. Livestock entered in all intrastate shows, fairs, and exhibitions are 
exempt from the certificate of veterinary inspection and testing requirements 
except poultry shall originate from flocks or hatcheries free of pullorum 
disease and fowl typhoid or have a negative pullorum-typhoid test within 30 days 
before exhibition. Poultry entering from out-of-state are not required to have a 
certificate of veterinary inspection if:
(i)-(iv) (No change.)
(e) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 25, 1991.
TRD-9113336
Terry Beals, DVM
Executive Director
Texas Animal Health Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 479-6697
       
Chapter 59. General Practice and Procedures
4 TAC sec.59.2
The Texas Animal Health Commission proposes an amendment to sec.59.2, concerning 
general responsibilities.
The amendment is necessary to provide that at least twice a year public comment 
may be given before the commission on any issue under the commission's 
jurisdiction.
Bill Hayden, director of administration, has determined that for the first five-
year period the section is in effect there will be no fiscal implications for 
state or local government as a result of enforcing and administering the 
section.
Robert L. Daniel, director of program records, has determined that for each of 
the first five years the new section is in effect the public benefit anticipated 
as a result of enforcing the section will be to provide the general public with 
the opportunity to attend a commission meeting and let the commissioners know of 
any problems or any ideas they may have with regard to issues within the 
commission's jurisdiction. There will be no effect on small businesses. There is 
no anticipated economic cost to persons who are required to comply with the 
section as proposed.
Comments on the proposal may be submitted to Jo Anne Conner, Texas Animal Health 
Commission, P.O. Box 12966, Austin, Texas 78711.
The amendment is proposed under the Agriculture Code, Texas Civil Statutes, 
Chapter 161 and 163, which provides the commission with the authority to adopt 
rules and set forth the duties of this commission to control disease.
sec.59.2. General Responsibilities.
(a)-(c) (No change.)
<nl>(d) Public comment. At least twice a year, the public will be provided an 
opportunity to appear at commission meetings to speak on any issue under the 
commission's jurisdiction.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 25, 1991.
TRD-9113329
Terry Beals, DVM
Executive Director
Texas Animal Health Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 479-6697
       
TITLE 16. ECONOMIC REGULATION
Part I. Railroad Commission of Texas
Chapter 5. Transportation Division
Subchapter B. Operating Certificates, Permits, and Licenses
16 TAC sec.5.43
The Railroad Commission of Texas proposes new sec.5.43, concerning the 
transportation of recyclable materials. The new section is proposed pursuant to 
the provisions of Senate Bill 1340, 72nd Legislature, 1991. The section sets out 
the simplified procedure for obtaining limited common carrier, limited 
specialized motor carrier, and limited contract carrier authority, as well as 
the new provisions for setting maximum rates for the transportation of 
recyclable materials.
Jackye Greenlee, assistant director-central operations, has determined that for 
the first five-year period the section is in effect there will be fiscal 
implications as a result of enforcing and administering the section. The effect 
on state government for the first five-year period the section is in effect is 
an estimated additional revenue of $87,500 for 1992, $36,000 for 1993, $20,500 
for 1994, and 12,750 each year for 1995-1996. There is no estimated additional 
cost for state government. There will be no fiscal implications for local 
governments.
Ronald D. Stutes, hearings examiner, has determined that for each of the first 
five years the new section is in effect the public benefit anticipated as a 
result of enforcing the section will be an increase in the number of carriers 
available to transport recyclable materials. There is no anticipated cost to 
persons who are required to comply with the proposed section.
Public comment is invited and may be submitted within 30 days to Ronald D. 
Stutes, Hearings Examiner, Railroad Commission of Texas, P.O. Box 12967, Austin, 
Texas 78711.
The new section is proposed under the Health and Safety Code, Chapter 361.431, 
which directs the commission to establish simplified rules for the issuance of 
authority to transport recyclable materials.
sec.5.43. Transportation of Recyclable Materials.
(a)  Definitions. The following words and terms, when used in this section, 
shall have the following meanings, unless the context clearly indicates 
otherwise.
(1) Recyclable materials-Material that has been recovered or diverted from the 
solid waste stream for purposes of reuse, recycling, or reclamation, a 
substantial portion of which is consistently used in the manufacture of products 
which may otherwise be produced using raw or virgin materials.
(2)  Recyclable material does not include recycled material; goods or products 
that are to be reconditioned, repaired, or restored and then reused in their 
original capacity; materials, goods, or products made in whole or in part from 
recycled materials; or materials, goods or products, capable of being recycled, 
that have not yet been subject to their original use.
(3) Recycled material-Material that consists of recyclable material or materials 
derived from postconsumer waste, industrial waste, or hazardous waste which has 
undergone a recycling process, and which may be used in place of a raw or virgin 
material in manufacturing another product.
(4) Solid waste-As defined in the Health and Safety Code, Chapter 361.
(b) Applications for certificates or permits to transport recyclable materials.
(1) Applications for limited common carrier certificates, limited specialized 
motor carrier certificates, and limited contract carrier permits authorizing the 
transportation of recyclable materials shall be filed on forms prescribed by the 
commission.
(2) Applications for authority to transport recyclable materials shall contain:
(A) the name and address of the applicant and the names and addresses of its 
officers, if any, and shall give full information concerning the financial 
condition and facilities of the applicant;
(B) the nature of the transportation in which the applicant wishes to engage, 
stating the territory to be served, the types of recyclable materials to be 
transported, the types of vehicles to be used, and the method of operations to 
be conducted;
(C) a list of each power unit which the applicant intends to use;
(D) other information which supports the application; and
(E) a filing fee of $100.
(3) All applications filed under this section shall be published as provided in 
sec.5. 407(a) of this title (relating to Service of Notice in Nonrulemaking 
Proceedings) .
(4) All protests to applications filed under this section shall be stricken 
unless the protest is accompanied by a sworn affidavit showing standing to 
protest by showing that the protestant has information relating to the fitness 
of the applicant or the applicant's ability to meet requisite safety standards. 
The fact that a protestant possesses authority to provide service which would be 
authorized under the certificate sought by the applicant, or that such service 
is being provided, shall not be sufficient to form the basis of standing to 
protest. The possession of information regarding violations which are or have 
been the subject of a complaint proceeding shall not be sufficient to form the 
basis of standing to protest.
(5) All applications for authority under this section shall be governed by the 
provisions of Chapter 1 of this title (relating to General Rules of Practice and 
Procedure) as well as the rules in Subchapter U of this Chapter (relating to 
General and Special Rules of Practice and Procedure), unless otherwise specified 
in this section.
(6)  At hearing, the applicant must show, by a preponderance of the evidence:
(A) that it is fit to operate the authority sought;
(B) that there exists a public necessity for the service proposed; and
(C) that it is able to meet the safety regulations applicable to its operations 
as proposed.
(7) If the commission determines that the applicant has complied with all 
applicable provisions of this section, the commission shall issue the applicant 
the certificate or permit sought.
(c)  Public necessity. In considering the issue of public necessity, the 
commission may consider that efficient transportation of recyclable materials is 
essential to the development of an effective statewide recycling program.
(d) Applicability of commission rules. Unless otherwise specified in this 
section, carriers receiving authority under this section shall be subject to all 
rules in this chapter.
(e) Amendments. A carrier with authority under this section may apply to amend 
its certificate or permit. The application for additional authority shall be 
determined under the same provisions as for a new certificate or permit.
(f) Rates.
(1) The commission shall establish maximum rates for limited common carriers, 
limited specialized motor carriers, and limited contract carriers transporting 
recyclable materials. The maximum rates will be set at a level which is 
comparable to interstate rates for transportation of recyclable materials which 
are charged by interstate motor carriers providing the same kind, class, and 
quality of service.
(2) The rates shall be set after a hearing in accordance with the provisions of 
the Administrative Procedure and Texas Register Act, Texas Civil Statutes, 
Article 6252-13a, and Chapter of this title. Carriers holding authority under 
this section, applicants for such authority, and carriers authorized to charge 
the rates under paragraph (3) of this subsection shall be required to present 
evidence of interstate services and interstate rates in connection with any 
proceeding to set rates under this subsection.
(3)  Rates set under this subsection may also be applicable to the 
transportation of recyclable materials by carriers operating under certificates 
of public convenience and necessity granted under the provisions of the Motor 
Carrier Act. Such carriers may elect to be subject to these rates, or may remain 
subject to rates established pursuant to the Motor Carrier Act.
(4) Until rates are adopted under this subsection by an administratively final 
order, the existing rates which apply to the involved transportation by 
specialized motor carriers or common carriers will apply as maximum rates. If 
the rates adopted under this subsection are enjoined or otherwise become 
ineffective as a result of court action, the rates which had previously been 
applicable to such transportation by specialized motor carriers or common 
carriers will apply as maximum rates.
(g) Dual certificate holders. A motor carrier holding a certificate of public 
convenience and necessity, or a contract carrier, may apply for a certificate or 
permit under this section. The prohibition against a person simultaneously 
holding a certificate of public convenience and necessity and a contract carrier 
permit (Texas Civil Statutes, Article 911b, sec.6-bb) shall not apply to limited 
common carrier certificates, limited specialized motor carrier certificates, or 
contract carrier permits issued under this section.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 28, 1991.
TRD-9113367
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 463-7094
       
The Railroad Commission of Texas proposes the repeal of  ssec.5.534, 5.535, and 
5.537, concerning scope of exemption under House Bill 593, definitions of key 
terms relating to agricultural commodities exemption, and grace period for 
holders of seasonal agricultural permits. Simultaneously, the commission 
proposes new sec.5.534 and sec.5.535, concerning scope of exemption and 
definitions of key terms relating to agricultural commodities exemption, and 
amendments to sec.5.536 and sec.5.538, relating to procedures for obtaining 
agricultural permits and enforcement of regulations under an agricultural 
permit. The repeals, replacements, and amendments are proposed to harmonize the 
rules with the Motor Carrier Act as amended, and to recodify the Agricultural 
Permit rules to make them more clear and more simple. The changes will broaden 
the agricultural permit exemption in accordance with recent legislative actions, 
and ease enforcement and interpretation of the rules.
Jackye S. Greenlee, assistant director-central operations, has determined that 
for the first five-year period the repeals and new sections are in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the repeals and new sections.
Karen Key Johnson, hearings examiner has determined that for each year of the 
first five years the repeals and new sections are in effect the public benefit 
anticipated as a result of enforcing the repeals and new sections will be 
greater consistency between the rules and the statute, and greater clarity of 
the scope of the agricultural commodities exemption. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the repeals and new sections as proposed.
Comments on the proposal may be submitted within 30 days to Karen Key Johnson, 
Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, 
Austin, Texas 78711.
Subchapter X. Agricultural Permits
16 TAC sec.sec.5.534, 5.535, 5.537
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Railroad 
Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The repeals are proposed under the Texas Motor Carrier Act, Texas Civil 
Statutes, Article 911b, sec.5b, which authorizes the commission to issue 
agricultural permits for the transportation of eligible agricultural 
commodities.
sec.5.534. Scope of Exemption Under House Bill 593.
sec.5.535. Definitions of Key Terms Relating to Agricultural Commodities 
Exemption.
sec.5.537. Grace Period For Holders of Seasonal Agricultural Permits.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 28, 1991.
TRD-9113368
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 463-7092
       
16 TAC sec.sec.5.534, 5.535, 5.536, 5.538
The new sections and amendments are proposed under the Texas Motor Carrier Act, 
Texas Civil Statutes, Article 911b, sec.5b, which authorizes the commission to 
issue agricultural permits for the transportation of eligible agricultural 
commodities.
sec.5.534. Scope of Exemption. A person transporting eligible agricultural 
commodities for compensation or hire, for the benefit of the original producer 
or grower, an independent ginning service, a grain or rice elevator business, a 
feedlot or livestock marketing business, a livestock slaughtering business, or a 
producers' or growers' cooperative association, between any point of production, 
processing, or storage, or from any point of production, processing, or storage 
to any point of first manufacture, regardless of who directs, controls, or pays 
for the transportation, is not required to obtain a certificate of public 
convenience and necessity from the commission or to comply with tariffs or 
orders of the commission governing rates and charges for such service if the 
person holds an agricultural permit.
sec.5.535. Definitions of Key Terms Relating To Agricultural Commodities 
Exemption.
(a) Persons entitled to the benefit of the exemption:
(1) eligible agricultural shipper-the original producer or grower of the 
agricultural commodity, an independent ginning service, a grain or rice elevator 
business, a feedlot or livestock marketing business, a livestock slaughtering 
business, or a cooperative association of which the original producer or grower 
of the agricultural commodity is a member;
(2)  original producer or grower-a producer or grower who holds title or partial 
title to the eligible agricultural commodity and who supervises or oversees the 
natural growth or production of the eligible agricultural commodity.
(A) With respect to timber in its natural state, a person shall have supervised 
or overseen the natural growth or production of the timber if the person holds 
title or partial title to the timber when it is harvested.
(B)  With respect to cottonseed hulls, cottonseed meal, and sugar beet pulp, the 
original producer or grower shall be the person who supervises and oversees the 
natural growth of the cotton or sugar beets.
(3) producers' or growers' cooperative association -any cooperative society duly 
organized under the Texas Agriculture Code, sec.sec.51.001-51.025 and 
sec.sec.52.001-52.152.
(b)  Transport for the benefit of an eligible agricultural shipper. 
Transportation of an eligible agricultural commodity is "for the benefit of" an 
eligible agricultural shipper when the eligible agricultural shipper:
(1)  is the consignor or consignee of the shipment;
(2) holds title or partial title to the shipment; or
(3) directs, controls, or pays for the transportation:
(c) Commodities eligible for exemption.
(1) Eligible agricultural commodities:
(A) cottonseed hulls, cottonseed meal, and sugar beet pulp;
(B) cotton, seed cotton, cottonseed, and cotton burrs;
(C) fresh eggs;
(D) fresh fruits and fresh vegetables;
(E) grain (including rice);
(F) hay;
(G) live animals, including livestock, poultry, and game birds;
(H) live horticultural products and live nursery stock, including any tree, 
shrub, vine, cutting, graft, scion, grass, bulb, or bud that is in a growing 
state and is grown for, kept for, or is capable of propagation and distribution 
for sale;
(I) manure produced by livestock, poultry, or game birds;
(J) nuts;
(K)  oil seed;
(L) peanuts;
(M) raw milk;
(N) seed (for planting);
(O) sugar cane;
(P) timber in its natural state as defined in sec.5.41 of this title (relating 
to the Definition of Timber in its Natural State); and
(Q) wool and mohair.
(2)  Inapplicability of other definitions. Provisions of sec.sec.5.29-5.31 of 
this title (relating to Specialized Motor Carriers of Agricultural Products, 
Specialized Motor Carriers of Livestock, Feedstock, and the Like, and 
Description of Grain) do not apply to the interpretation of commodities in this 
paragraph.
(d) Points to which exemption applies.
(1) Point of production:
(A) farms and ranches at which the agricultural commodities were grown;
(B) for livestock, poultry, and game birds, any farm or ranch at which such 
animals are held for the purpose of physical growth and development;
(C) for cottonseed, the gin at which the seeds were produced by separation from 
the cotton boll; and
(D) except as provided in subparagraphs (A)-(C) of this paragraph, any point in 
the State of Texas at which such commodity is severed from the earth or at which 
such substance was eliminated, removed, or extracted from the host animal other 
than by slaughtering.
(2) Point of processing:
(A) cotton gins, rice mills, dryers, feed mills, packing sheds, egg packing 
facilities, and grain and seed cleaning and conditioning facilities;
(B) animal auction barns, nurseries, greenhouses, lathe houses, and container 
growing areas at which the continuing substantial identity of the commodity is 
not changed but merely made ready for first manufacture; and
(C) any other point at which the commodity undergoes any act or event that 
leaves the substantial continuing identity of the commodity unchanged and 
constitutes preparation for subsequent storage or first manufacture.
(3) Point of storage:
(A) grain or rice elevators, compresses, warehouses, livestock receiving pens, 
and milk receiving stations; and
(B) any other point at which the commodity is deposited, there to await 
subsequent transport by motor vehicle or rail to another point of storage, a 
point of processing, or a point of first manufacture:
(4) Point of first manufacture:
(A) the point at which the continuing substantial identity of the commodity is 
changed. The continuing substantial identity of an eligible agricultural 
commodity will be deemed to have changed where either:
(i) the description of the commodity in standard trade usage changes; or
(ii) the character of the commodity itself is changed, such as where:
(I) livestock, poultry, or game birds are slaughtered;
(II) fresh fruits or vegetables are chopped, crushed, sliced, or ground;
(III) milk is pasteurized or homogenized, or the cream is separated from the 
milk; or
(IV) any eligible agricultural commodity is boiled, cooked, frozen, or packaged 
in airtight containers for sale or distribution.
(B) for live horticultural products and live nursery stock, the point of first 
manufacture is any business, whether retain or wholesale, or any other location 
at which such products or stock, having been acquired from the original producer 
or grower, are maintained and held out as merchandise as that term is ordinarily 
used among business persons and the general public.
sec.5.536. Procedures for Obtaining Agricultural Permits.
(a)-(c) (No change.)
<nl>(d) Date of issuance. Each permit is valid for one year from the date of 
issuance unless a shorter period is requested by the applicant.
sec.5.538. Enforcement of Regulations Governing Operations under an Agricultural 
Permit.
(a) (No change.)
(b) Burden of proof in administrative enforcement proceedings. In an 
administrative enforcement proceeding, the burden of proving that transportation 
was "for the <nl>benefit of an eligible agricultural shipper <ol> [original 
producer or grower or producers' or growers' cooperative association]" shall be 
on the permit holder.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 28, 1991.
TRD-9113369
Martha V. Swanger
Hearings Examiner, Gas Utilities/LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 463-7092
       
TITLE 22. EXAMINING BOARDS
Part IX. Texas State Board of Medical Examiners
Chapter 163. Licensure
22 TAC sec.163.4
The Texas State Board of Medical Examiners proposes an amendment to sec.163. 4, 
concerning training programs approved by the board. A change in the language of 
the rule is proposed to define fellowship training.
Ivan Hurwitz, director of administrative services, has determined that for the 
first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section.
Pat Wood, secretary of the executive director, has determined that for each year 
of the first five years the section is in effect the public benefit anticipated 
as a result of enforcing the section will be clarification of the rules. There 
will be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the section as proposed.
Comments on the proposal may be submitted to Pat Wood, P.O. Box 13562, Austin, 
Texas 78711. A public hearing will be held at a later date.
The amendment is proposed under Texas Civil Statutes, Article 4495b, which 
provide the Texas State Board of Medical Examiners with the authority to make 
rules, regulations, and bylaws not inconsistent with the Act as may be necessary 
for the governing of its own proceedings, the performance of its duties, the 
regulation of the practice of medicine in this state, and the enforcement of 
this Act.
sec.163.4. Training Programs Approved by the Board. <ol> The board will approve 
training programs annually. Training programs must be:
(1)-(2) (No change.)
(3) a postresidency program<nl>, usually called fellowship,<ol> for additional 
training in a medical specialty or subspecialty delivered in a program approved 
<nl>for residency training<ol> by the Accreditation Council for Graduate Medical 
Education or the American Osteopathic Association[, following an approved United 
States residency].
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 28, 1991.
TRD-9113373
Homer R. Goehrs, M.D.
Executive Director
Texas State Board of Medical Examiners
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 452-1078
       
Chapter 167. Reinstatement of Medical License
22 TAC sec.167.1
The Texas State Board of Medical Examiners proposes an amendment to sec.167. 1, 
concerning reinstatement of medical license following cancellation for 
nonpayment of annual registration fee. A change in the relicensure rule is 
proposed to allow physicians whose licenses have been cancelled for five years 
or less to be reinstated without having to complete the full reciprocity 
licensure procedure.
Ivan Hurwitz, director of administrative services, has determined that for the 
first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section.
Pat Wood, secretary to the executive director, also has determined that for each 
year of the first five years the section is in effect there will be no public 
benefit. There will be no effect on small businesses.
Comments on the proposal may be submitted to Pat Wood, Secretary to the 
Executive Director, P.O. Box 13562, Austin, Texas 78711. A public hearing will 
be held at a later date.
The amendment is proposed under Texas Civil Statutes, Article 4495b, which 
provide the Texas State Board of Medical Examiners with the authority to make 
rules, regulations, and bylaws not inconsistent with this Act as may be 
necessary for the governing of its own proceedings, the performance of its 
duties, the regulation of the practice of medicine in this state, and the 
enforcement of this Act.
sec.167.1. Reinstatement of Medical License Following Cancellation for 
Nonpayment of Annual Registration Fee.
(a) (No change.)
(b) <nl>For a physician to reinstate his or her license within five years 
following cancellation for nonpayment of annual registration fee(s), the 
physician must meet the qualifications for licensure in Article 4495b, complete 
the application for reinstatement, and submit the required fee<ol> [For a 
physician to reinstate his or her license following cancellation for nonpayment 
of annual registration fee(s), the physician must apply for licensure and must 
qualify under sec.163.1 of this title (relating to Licensure Qualifications for 
all Applicants)].
<nl>(c) For a physician to reinstate his or her license following cancellation 
for nonpayment of annual registration fee(s), after five years from the date of 
cancellation, the physician must apply for licensure and must qualify under 
sec.163.1 of this title (relating to Licensure Qualifications for all 
Applicants), and sec.163.9 of this title (relating to Procedural Rules for all 
Licensure Applicants).
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 28, 1991.
TRD-9113372
Homer R. Goehrs, M.D.
Executive Director
Texas State Board of Medical Examiners
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 452-1078
       
Part XXII. Texas State Board of Public Accountancy
Chapter 527. Quality Review
22 TAC sec.527.8
The Texas State Board of Public Accountancy proposes new  s527.8, concerning 
oversight procedures to be followed by the Quality Review Oversight Board. The 
proposed rule sets forth the responsibilities of the Quality Review Oversight 
Board.
William Treacy, executive director, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section.
Mr. Treacy also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be clarification of responsibilities of the Quality Review 
Oversight Board. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the section 
as proposed.
Comments on the proposal may be submitted to J. Randel (Jerry) Hill, General 
Counsel, 1033 La Posada, Suite 340, Austin, Texas 78752-3892.
The new section is proposed under Texas Civil Statutes, Article 41a-1, sec.6(a) 
, which provide the Texas State Board of Public Accountancy with the authority 
to promulgate rules relating to the Quality Review Program.
sec.527.8. Oversight Procedures To Be Followed by the Quality Review Oversight 
Board.
(a) The purpose of the Quality Review Oversight Board (QROB) shall consist of 
the following:
(1) monitoring sponsoring organizations to provide reasonable assurance that 
quality reviews are being conducted and reported on in accordance with quality 
review minimum standards;
(2) reviewing the policies and procedures of sponsoring organization applicants 
as to their conformity with the quality review minimum standards; and
(3) reporting to the Texas State Board of Public Accountancy (board) on the 
conclusions and recommendations reached as a result of performing functions in 
paragraphs (1) and (2) of this subsection. Reports submitted to the board will 
not contain information concerning specific firms or reviewers in conformity 
with sec.527.4(5) of this title (relating to Quality Review Program).
(b) The oversight procedures to be performed by QROB in monitoring of sponsoring 
organizations shall consist of the following.
(1) Where the sponsoring organization is the AICPA Quality Review Program or 
other approved sponsoring organizations other than the SEC Practice Section 
(SECPS) and the Private Companies Practice Section (PCPS), QROB shall perform 
the following functions.
(A) QROB shall visit each sponsoring organization annually.
(B) During such visits, QROB shall:
(i) meet with the organization's quality review committee during the committee's 
consideration of quality review documents;
(ii) review the organization's procedures for administering the quality review 
program;
(iii) review, on the basis of a random selection, a number of on-site and off-
site reviews performed by the organization to include, at a minimum, a review of 
the report on the quality review, the letter of comments (if any), the firm's 
response to the matters discussed in the letter of comments, the sponsoring 
organization's acceptance letter outlining any additional corrective or 
monitoring procedures, and the working papers on the selected reviews; the 
purpose of review by QROB is to determine whether the reviews are being 
conducted and reported on in accordance with the quality review minimum 
standards; and
(iv) expand the review of quality review documents if significant deficiencies, 
problems, or inconsistencies are encountered during the review of the materials.
(C) On the basis of the result of the foregoing procedures, QROB shall make an 
annual recommendation to the board as to the continuing qualifications of the 
approved sponsoring organization.
(2) For reviews administered by the PCPS, QROB should review the annual 
statistics obtained from PCPS and perform further procedures, as considered 
appropriate.
(3) Where the sponsoring organization is the SECPS, the QROB shall review the 
published annual report of the Public Oversight Board and conclude whether the 
procedures carried out by the Public Oversight Board and the disclosures 
contained in the annual report are indicative of an acceptable level of 
oversight. Based on the results of its review, QROB shall make an annual 
recommendation to the board as to the continuing qualifications of SECPS as an 
approved sponsoring organization.
(c) In the reviewing of policies and procedures of sponsoring organization 
applicants, QROB shall perform the following procedures:
(1) review the policies as drafted by the applicant to determine that they will 
provide reasonable assurance of conforming with the minimum standards for 
quality reviews;
(2) review the procedures as proposed by the applicant to determine that they 
will insure the following:
(A) reviewers assigned are appropriately qualified to perform the review for the 
specific firm;
(B) reviewers are provided with appropriate materials (checklists, etc.);
(C) applicant has provided for consulting with the reviewers on problems arising 
during the review and that specified occurrences requiring consultation are 
outlined;
(D) applicant has provided for the review of the results of the review; and
(E) applicant has provided for an independent report acceptance body that meets 
the standards for quality review; the report acceptance body shall consider and 
accept the results of the review; the report acceptance body should also require 
corrective actions of firms with significant deficiencies noted in the review 
process;
(3) make recommendations to the board as to approval of the applicant as a 
sponsoring organization.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 18, 1991.
TRD-9113044
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 29, 1991
For further information, please call: (512) 450-7066
       
Part XXIII. Texas Real Estate Commission
Chapter 535. Provisions of the Real Estate License Act
Requirements for Licensure
22 TAC sec.535.51
The Texas Real Estate Commission proposes an amendment to sec.535.51, concerning 
general requirements for licensure. The amendment adopts by reference a series 
of six forms which applicants use to obtain real estate licenses. The amendment 
is necessary to revise and standardize the application forms used by the 
commission. The forms contain questions relating to the applicant's previous 
employment, to civil or criminal proceedings or judgments, and to the time the 
applicant spends or has spent in a variety of real estate-related business 
activities. Background information about the applicant's education is also 
requested to assist the commission in addressing the needs of its licensees. 
Form BL-1 is used by an individual applying for a real estate broker license; 
Form BLC-1 is used by a corporation applying for a real estate broker license. 
Form BLR-1 is used by a broker filing an application after a previous license 
was not timely renewed; Form BLRC-1 is used by a corporation which failed to 
renew a previous license. Form SL-1 is used by a salesman filing an application 
after a previous license was not timely renewed. Form MCD-1 is used by a 
potential applicant to determine whether a criminal offense or other matter 
would be a basis for the commission to deny a license.
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section.
Mr. Moseley also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be clarification of the information provided to the commission by 
applicants. There will be no effect on small businesses. There is no anticipated 
economic cost to persons who are required to comply with the section as 
proposed. No impact on local employment is anticipated.
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.
The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which provide the Texas Real Estate Commission with the authority to make and 
enforce all rules and regulations necessary for the performance of its duties.
sec.535.51. General Requirements.
(a)-(c) (No change.)
<nl>(d) <nl>The commission adopts by reference the following forms approved by 
the commission in 1991 which are published by and available from the Texas Real 
Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188:
<nl>(1) Application for Real Estate Broker License, TREC Form BL-1;
<nl>(2) Application for Real Estate Broker License by a Corporation, TRED Form 
BLC-1;
<nl>(3) Application for Late Renewal of Real Estate Broker License Privileges, 
TRED Form BLR-1;
<nl>(4) Application for Late Renewal of Real Estate Broker License Privileges by 
a Corporation, TREC Form BLRC-1;
<nl>(5) Application for Real Estate Salesman License, TREC Form SL-1;
<nl>(6) Application for Late Renewal of Real Estate Salesman License Privileges, 
Form TRED SLR-1; and
<nl>(7) Application for Moral Character Determination, TRED Form MCD-1.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 25, 1991.
TRD-9113287
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 465-3900
       
Licenses
22 TAC sec.535.92
(Editor's Note: The Texas Real Estate Commission proposes for permanent adoption 
the new section it adopts on an emergency basis in this issue. The text of the 
new section is in the Emergency Rules section of this issue.)
The Texas Real Estate Commission proposes an amendment to sec.535.92, concerning 
the time for filing license renewal applications. The amendment permits real 
estate brokers and salesmen to file their license renewal applications during a 
90-day period which ends when the existing license expires.
The amendment is necessary to increase the number of timely renewal 
applications. If a real estate licensee does not timely file an application to 
renew an existing license, the licensee must file an application for a new 
license and may be unable to practice while the application is being processed 
by the commission. Recent fee increases and mandatory education requirements 
have materially reduced timely filing of license renewal applications.
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section.
Mr. Moseley also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be increased efficiency in the processing of real estate license 
renewals. There will be no effect on small businesses. There is no anticipated 
economic cost to persons who are required to comply with the section. There is 
no anticipated impact on local employment.
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.
The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which provide the Texas Real Estate Commission with the authority to make and 
enforce all rules and regulations necessary for the performance of its duties.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 25, 1991.
TRD-9113284
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Proposed date of adoption: December 6, 1991
For further information, please call: (512) 465-3900
       
Licensed Real Estate Inspectors
The Texas Real Estate Commission proposes the repeal of  ssec.535.202-535.204 
and new 535.206, 535.208, 535.210, 535.212, 535.214, 535.224 and 535.226, 
concerning licensed real estate inspectors. These actions implement a new 
licensing program for real estate inspectors provided by Senate Bill 432, 
enacted by the 72nd Legislature.
Under Senate Bill 432, a person must be registered as an apprentice real estate 
inspector or licensed as either an inspector or an inspector-in-training in 
order to perform inspections of improvements to real property for a buyer or 
seller. An inspector licensed under prior law may continue to practice, but 
renewal of an existing license is conditioned upon satisfaction of education and 
experience requirements established by Senate Bill 432.
The commission has appointed an advisory committee of inspectors, known as the 
Texas Real Estate Inspector Committee. The committee has recommended the repeal 
of existing sections relating to the prior law and adoption of new sections 
implementing the new licensing program. These actions are necessary to authorize 
the Texas Real Estate Commission to accept applications and register or license 
inspectors and to establish the functions of the Texas Real Estate Inspector 
Committee under Senate Bill 432.
Section 535.202 relates to the application form, fees, and examination required 
under the prior law governing real estate inspectors. The section also provides 
guidelines for the scope of a real estate inspection. Repeal of sec.535. 202 is 
necessary so that new sections addressing the same subjects may be adopted by 
the commission under current law.
Section 535.203 concerns violations that may be committed by a licensed 
inspector in connection with an application for a license or a complaint being 
investigated under the prior law. The section authorizes disciplinary action if 
a licensed inspector makes false statements to obtain a license, fails to make 
good a check issued to the commission, fails to produce records for inspection, 
or fails to provide information requested by the commission as a result of a 
complaint. The provisions of sec.535.203 would be substantially readopted in new 
sec.535.208 and  s535.224 upon the recommendation of the Texas Real Estate 
Inspector Committee.
Section 535.204 permits the commission to void an application if an applicant 
fails to satisfy the examination requirement, pay a required fee, or fails to 
provide information requested by the commission. The provisions of sec.535.204 
also would be substantially readopted in new sec.534.208 upon the recommendation 
of the Texas Real Estate Inspector Committee.
New sec.535.206 concerns the Texas Real Estate Inspector Committee called for by 
Senate Bill 432; the section details the quorum and procedures of the committee 
with regard to minutes, reports, and hearings.
Section sec.535.208 established general requirements for registration and 
licensing and adopts by reference forms used by applicants. Form REI 2-1 is an 
application form for registration as a real estate inspector. Form REI 3-1 is an 
inspection log to be completed by a registered apprentice inspector and his 
sponsor as part of an application for a license as an inspector-in-training. 
Form REI 4-1 is an application form for a real estate inspector-in-training 
license. Form REI 5-1 is an inspection log for use in an application for an 
inspector license. Form REI 6-11 is an application Form for an inspector 
license. The application forms require applicants to disclose criminal 
convictions or unsatisfied judgments, disciplinary actions, or other pending 
civil or criminal proceedings which might be the basis for an application to be 
denied. The forms also obtain background information to identify the applicants 
for purposes of a records check through the Texas Department of Public Safety. 
Section 535.208 also provides grounds to void an application which are presently 
found in sec.535. 204. The new section provides for denial of an application if 
the applicant has failed to satisfy the commission as to the applicant's 
honesty, trustworthiness or integrity, or the applicant has been convicted of a 
criminal offense the commission has determined to be directly related to the 
duties and responsibilities of licensed inspectors. A false statement to the 
commission in an application is grounds for denial of the application or 
disciplinary action against a licensee.
Section 535.210 establishes the fees to be paid for filing applications, for 
renewing a license or registration, for taking an examination, for replacing a 
license or registration certificate, and for deposit into the real estate 
inspector recovery fund.
Section 535.212 addresses the education and experience required for a license as 
an inspector or as inspector-in-training. The section permits the commission to 
approve a course devoted to a subject listed in the definition of "core real 
estate inspection courses" contained in Senate Bill 432 and offered by providers 
such as accredited colleges or universities, schools accredited or approved by 
state agencies, professional trade associations, or by service-related schools. 
After November 1, 1991, a course must also be based on classroom presentations 
unless the course is approved on a correspondence basis under the guidelines 
provided in the section. Written examinations will be required for course 
acceptance after November 1, 1991, and any course offered by trade associations 
must be in compliance with state law. Course providers may obtain prior approval 
of a course from the commission after submission of a course description, copies 
of written course materials provided to students, and a copy of the final 
examination.
Section 535.212 also provides guidelines for measuring experience. An inspection 
report which includes the structural components of improvements and the 
equipment and systems (plumbing, electrical, cooling and ventilation, and other 
systems) is given full credit as an inspection. A report limited either to the 
structural or to the equipment/systems components is given half credit. An 
inspection of two or more units in a single report is considered one inspection 
for purposes of measuring an applicant's experience. Oral inspection reports 
must be verifiable by documentation, and inspectors may not receive experience 
credit for inspections performed by apprentices under their supervision.
Section 535.214 requires an examination for an inspector-in-training license and 
for an inspector license. The examination must measure competency in the subject 
areas required for licensure, an a passing score is set at 75%.
Section 535.224 concerns administrative hearings before the Texas Real Estate 
Inspector Committee. The committee will hear, and recommend the entry of final 
orders by the commission in, cases involving registered or licensed inspectors 
or applicants for registration or licensing. Proceedings must be conducted in 
accordance with the commission's rules of practice and procedure and Texas Civil 
Statutes, Article 6252-13a. The new section also readopts the additional grounds 
for suspension or revocation which were contained in sec.535.203.
Section 535.226 concerns the sponsorship of apprentices and inspectors-in-
training. The new section clarifies that an apprentice and inspector-in-training 
may have only one sponsoring inspector. Changes of sponsorship must be filed 
with the commission immediately and the apprentice or inspector-in-training may 
practice for a new sponsoring inspector once a written notice and any fee for a 
change of address have been placed in the mail to the commission. The new 
section also requires apprentices and the inspector or inspector-in-training who 
directly supervised the inspection to sign any written inspection report.
Jack Morris, director of programs, has determined that for the first five-year 
period the repeals and new sections are in effect there will be fiscal 
implications for state government as a result of enforcing or administering the 
sections. Revenue from applicant filing fees is anticipated to match 
expenditures necessary for the inspector program, although the commission must 
obtain a supplemental appropriation to authorize expenditures of approximately 
$120,000 per year. Persons who are required to comply with the proposed sections 
would incur the expense of filing fees, ranging from $25 to $100, and courses to 
satisfy education requirements. Courses are available at an estimated cost of 
$5. 00 per credit hour. There will be no fiscal implications for local 
government.
Mr. Morris also has determined that for each year of the first five years the 
repeals and new sections are in effect the public benefit anticipated as a 
result of enforcing the sections will be the consumer protection expected from 
registration, licensing, and regulation of real estate inspectors by the state. 
There will be no effect on small businesses.
Comments on the proposal may be submitted to Jack Morris, Director of Programs, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.
sec.sec.535.202-535.204
(Editor's note: The Texas Real Estate Commission proposes for permanent adoption 
the repealed sections it adopts on an emergency basis in this issue. The text of 
the repealed sections is in the Emergency Rules Section of this issue.)
The repeals are proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which provide the Texas Real Estate Commission with the authority to make and 
enforce all rules and regulations necessary for the performance of its duties.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 25, 1991.
TRD-9113460
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earlist possible date of adoption: December 6, 1991
For further information, please call: (512) 465-3900
       
22 TAC sec.sec.535.206, 535.208, 535.210, 535.212, 535.214, 535.224, 535.226
(Editor's Note: The Texas Real Estate Commission proposes for permanent adoption 
the new sections it adopts on an emergency basis in this issue. The text of the 
new sections is in the Emergency Rules section of this issue.)
The new sections are proposed under Texas Civil Statutes, Article 6573a, 
sec.5(h), which provide the Texas Real Estate Commission with the authority to 
make and enforce all rules and regulations necessary for the performance of its 
duties.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 25, 1991.
TRD-9113288
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 465-3900
       
TITLE 25. HEALTH SERVICES
Part I. Texas Department of Health
Chapter 145. Long-Term Care
Subchapter G. Standards for Nursing Homes That Cover Licensure and Medicaid 
Certification.
25 TAC sec.145.111
The Texas Department of Health (department) proposes an amendment to 
sec.145.111, concerning standards for nursing homes jointly developed by the 
department and the Texas Department of Human Services (TDHS) that apply to 
licensure and medicaid certification (standards). The standards are in TDHS 
rules in 40 TAC sec. s19.1-19.2107, which the department has adopted by 
reference in sec.145.111. Accordingly, the department's amendment to sec.145.111 
will incorporate the amendments to 40 TAC sec. s19.101-19.2105 being made by 
TDHS. The amendments by TDHS provide substantive clarification and consolidation 
of previously adopted sections; changes to conform to federal regulation changes 
under the Omnibus Reconciliation Act of 1990; and changes to comply with Texas 
health care professionals' practice/licensing acts. These amendments were 
published in their entirety in the October 8, 1991 issue of the Texas Register  
(16 TexReg 5562) under TDHS proposed rules in 40 TAC sec.sec.19.101-19.2105.
Stephen Seale, Chief Accountant III, Budget Office, has determined that for the 
first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section as proposed.
Mr. Seale also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated is that the requirements for 
nursing home licensure and certification will be updated to comply with current 
federal and state laws and that facilities, department employees, and the public 
will more clearly understand the requirements. There is no anticipated cost to 
small businesses and there is no impact on local employment. There is no 
anticipated cost for persons who are required to comply with the section as 
proposed.
Comments on the proposal may be submitted to Richard L. Butler, Chief, Bureau of 
Long Term Care, Texas Department of Health, 1100 West 49th Street, Austin, Texas 
78756-3185, (512) 458-7709. Comments will be accepted for 30 days following the 
date of publication of this proposal in the Texas Register .
The amendment is proposed under the Health and Safety Code (Code), sec.242.037, 
which provides for the Texas Board of Health to promulgate rules relative to its 
licensing authority for long term care facilities; sec.12.001, which provides 
the Texas Board of Health with the authority to adopt rules for the performance 
of every duty imposed by law on the Texas Board of Health, the Texas Department 
of Health, and the commissioner of health; and sec.222.0255 (Senate Bill 487, 
sec.8, 71st Legislature, 1989), which provides the Texas Department of Health 
and the Texas Department of Human Services with the authority to jointly develop 
one set of standards for nursing homes that applies to licensure and to 
certification for participation in the medical assistance program under Chapter 
32, Human Resources Code, and to adopt by rule the standards and any amendments 
to them. The amendments will affect the Code, sec.222.0255.
sec.145.111. Standards for Nursing Homes Jointly Developed by the Texas 
Department of Health and Texas Department of Human Services That Apply to 
Licensure and to Medicaid Certification.
(a) The Texas Department of Health adopts by reference the Texas Department of 
Human Services rules in 40 TAC sec. s19.1-19.2107, concerning long-term care 
nursing facility requirements for licensure and Medicaid certification, as 
amended <nl>January <ol> [September] <nl>1992 <ol> [1991].
(b) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 29, 1991.
TRD-9113338
Robert A. MacLean, M.D.
Deputy Commissioner
Texas Department of Health
Proposed date of adoption: January 25, 1992
For further information, please call: (512) 458-7709
       
Chapter 325. Solid Waste Management
Subchapter M. Solid Waste Technician Training and Certification Program.
The Texas Department of Health (department) proposes amendments to 
sec.sec.325.381, and 325.384-325.389; the repeal of existing sec.sec.325.382, 
325.383, 325.390, and 325.391; and new  ssec.325.382, 325.383, and 325.390-
325.392 concerning the state's Solid Waste Technician Training and Certification 
Program. Proposed amendments to sec.sec.325. 381, and 325.384-325.389 cover the 
purpose and applicability, definitions, administration, application for letter 
of competency, qualifications (and conditions for a letter of competency), 
renewal, and revocation. Sections 325. 382, 325.383, 325.390, and 325.391, which 
are proposed for repeal, cover general requirements, classifications of 
municipal solid waste sites, recommendations of solid waste facility 
owners/operators, and fees. New sec.sec.325.382, 325.383, and 325.390-325.392 
cover program objectives, program description, reciprocity, owner/operator 
responsibilities, and fees. The proposed amendments, repeals, and new sections 
will update and clarify the department's municipal solid waste management 
regulations, and are partially in response to the recommendation of the Texas 
Legislature's 1990 Joint Task Force on Waste Management Policy (published 
January 1991) that the state consider requiring certification of landfill 
operators (i.e., replacement of the current voluntary program with some type of 
mandatory program).
Stephen Seale, Chief Accountant III, Budget Division, has determined that there 
will be fiscal implications for state government for the first five year period 
the proposed sections will be in effect as a result of administering the 
proposed sections. The state will experience increased costs associated with 
development and implementation of new training courses, testing and 
certification of applicants, and overall program administration. The state will 
also see increased revenue, expected to result from the collection of fees 
required to be paid by applicants seeking either initial or renewed solid waste 
technician letters of competency. Overall, the additional net cost to state 
government will be $27,500 for fiscal year 1992, $24,500 for fiscal year 1993, 
$26,000 for fiscal year 1994, and $26,800 for fiscal years 1995 and 1996.
Local governments which comply with the recommendations set forth in the 
proposed rules can expect to see additional costs during the next five years, as 
a result of the proposed sections. If all local governments comply with the 
recommendations, total costs are estimated to be $46,000 for fiscal year 1992, 
$157,000 for fiscal years 1993 and 1994, $145,000 for fiscal year 1995, and 
$125, 000 for fiscal year 1996.
Mr. Seale also has determined that for each year of the first five years the 
sections as proposed will be in effect the primary public benefit, as a result 
of administering the sections as proposed, will be enhanced, more efficient, 
operation of both existing and new municipal solid waste disposal facilities and 
solid waste collection systems. Proper training can be expected to result in 
fewer permit and/or regulation violations, and thus fewer fines and 
administrative penalties. Adequately trained managers and operators will also 
help insure that solid waste management operations are run more safely, that the 
environment (groundwater resources in particular) will be less endangered, and 
that future remedial action costs will not be incurred.
Generally, the only businesses affected by the proposed sections will be those 
large businesses which operate municipal solid waste landfills or solid waste 
collection and/or transportation systems. The proposed rules recommend identical 
operator training requirements for government owned and privately owned solid 
waste facilities and operations. The overall additional cost to businesses, if 
all affected businesses complied with the proposed rules, has been determined to 
be significantly smaller than to local governments (less than 15% of the 
estimated costs for local governments) since fewer municipal solid waste 
facilities are owned or operated by private companies than by local governments 
and since most privately owned and operated facilities are already meeting the 
more stringent requirements. The likely increase in cost to Texas businesses is 
estimated to range between $8,000 and $22,000 per year. Small businesses, to the 
extent they are involved in the collection, transport, and/or disposal of solid 
waste, will be affected the same as local governments and large businesses. Very 
few small businesses, however, are involved in the handling of solid waste to an 
extent that would cause these rules to affect them. Therefore, no cost can be 
calculated for small businesses generally.
The proposed sections will have no significant financial impact on persons, 
since it is anticipated that facility and collection system employers will be 
able to provide the necessary training. The proposed rules will not have any 
measurable impact on local employment, since the total number of operators 
required for various solid waste management facilities and operations will not 
change.
Five public hearings to receive comments on the proposed rules have been 
scheduled and are as follows: Friday, November 22, 1991, 1 p.m., Community Room, 
Mahon Public Library, 1306 Ninth Street, Lubbock; Monday, December 2, 1991, 1 p. 
m., Auditorium, Texas Department of Health, 1100 West 49th Street, Austin; 
Tuesday, December 3, 1991, 1 p.m., Short Course Center, Texas State Technical 
College (TSTC), 24 Box Wood, Harlingen; Wednesday, December 4, 1991, 1 p.m., 
City Council Chambers, 317 West College, Grand Prairie; and Thursday, December 
5, 1991, 1 p.m., Bear Creek Park Agricultural Service Building, Two Abercrombie 
Drive (2 3/4 miles north of the intersection of IH 10 and Highway 6, at 
intersection of Patterson Road and Bear Creek Drive), Houston.
Written comments will also be considered if received by 5 p.m., Monday, December 
9, 1991. Comments should be mailed to: T. A. Outlaw, Jr., P.E., Chief, Bureau of 
Solid Waste Management, Texas Department of Health, 1100 West 49th Street, 
Austin, Texas 78756-3199. Telephone inquiries may be made by contacting Doug 
McArthur or James Highberg at (512) 406-7715.
25 TAC sec.sec.325.381, 325.384-325.389
The amendments are proposed under the Health and Safety Code, sec.361.011, which 
establishes the department's jurisdiction to manage and control solid waste; 
sec.361.024, which provides the Texas Board of Health the authority to adopt 
rules to manage and control municipal solid waste; and sec.12.001, which 
provides the board with the authority to adopt rules for the performance of 
every duty imposed by law on the board, the Texas Department of Health, and the 
commissioner of health. The proposed rules affect the Health and Safety Code, 
sec.361.027.
sec.325.381. Purpose and Applicability.
(a) The purpose of this <nl>subchapter<ol> [rule] is to establish 
<nl>procedures<ol> [a procedure] and requirements for training and 
<nl>certifying<ol> [certification of] <nl>persons <ol> [solid waste technicians] 
who are<nl>,<ol> or who <nl>wish to<ol> [may] become<nl>,<ol> engaged in the 
management and/or operation of a municipal solid waste <nl>collection, 
transportation, processing, recycling, or disposal<ol> management facility<nl>, 
activity, or operation<ol> [and for training and certification of solid waste 
technicians who are or who may become engaged in the collection or 
transportation of municipal solid waste].
(b)  This <nl>subchapter<ol> [rule] is applicable to persons who<nl>, in 
accordance with Health and Safety Code, sec.361.027,<ol> wish to <nl>receive<ol> 
[be provided] a letter of competency <nl>confirming<ol> [by the Texas Department 
of Health] that [recognizes] that <nl>they<ol> [the solid waste technician]  
<nl>meet<ol> [meets] or <nl>exceed<ol> [exceeds] the standards established in 
this <nl>subchapter, with respect to training, experience, and education<ol> 
[section]. [Additional training requirements for persons engaged in management 
of hazardous waste are established in sec.325.333 (e) of this title (relating to 
General).]
sec.325.384. Definitions.  The following words and terms, when used in this 
subchapter, shall have the following meanings, unless the context clearly 
indicates otherwise. Other definitions, pertinent to specific sections, are 
contained within the appropriate sections.
 Approved technical institute-An institution, either public or private, 
organized to provide technical training in solid waste management, offering 
courses of instruction which have been approved by the department for 
<nl>initial and/or renewal <ol> training credits and having, as a minimum, an 
instructor who:
(A) <nl>has<ol> [Has] at least two years [full-time or an equivalent part-time] 
experience as a professional instructor in this or a closely-related field plus 
three years solid waste experience; or
(B)  <nl>has successfully<ol> [Has] completed courses of instruction offered by 
the <nl>Texas<ol> Engineering Extension <nl>Service, or other department 
approved educational institution, on<ol> [Service's Vocational Industrial 
Teacher Education Division to include] methods of teaching vocational industrial 
subjects, organization and use of instructional materials<nl>, <ol> and human 
relations for vocational teachers plus three years solid waste experience; or
(C) <nl>can<ol> [Can] demonstrate <nl>teaching qualifications <ol> 
[qualification] and instructor experience equivalent to subparagraphs (A) and 
(B) of this definition plus three years solid waste experience.
 [Board of Health -Texas Board of Health.]
 [Collection-The act of removing solid waste (or materials which have been 
separated for the purpose of recycling) for transport elsewhere.]
 [Collection system -The total process of collecting and transporting solid 
waste. It includes storage containers; collection crews, vehicles, equipment and 
management; and operating procedures. Systems are classified as municipal, 
contractor, or private.]
 [Commissioner-Commissioner of Health.]
 [Department-Texas Department of Health.]
 [Disposal-The discharge, deposit, injection, dumping, spillage, leaking, or 
placing of any solid waste or hazardous waste (whether containerized or 
uncontainerized) into or on any land or water so that such solid waste or 
hazardous waste or any constituent thereof may enter the environment or be 
emitted into the air or discharged into any waters, including groundwaters.]
 [Engineering extension service-Texas Engineering Extension Service, Texas A & M 
University System.]
 Experience-Actual experience gained from participating as <nl>an<ol> [a 
principal] operator foreman, supervisor, or manager of a solid waste [facility] 
<nl>collection, transportation, processing, recycling, or disposal facility, 
activity or operation<ol> appropriate to the respective Letter of competency or 
other solid waste management experience approved by the department.
 [Hazardous Waste -A solid waste (or combination of solid wastes) which because 
of its quantity, concentration, or physical, chemical, or infectious 
characteristics may:]
[(A) cause, or significantly contribute to an increase in mortality or an 
increase in serious irreversible, or incapacitating reversible, illness; or
[(B) pose a substantial present or potential hazard to human health or the 
environment when improperly treated, stored, transported, or disposed of, or 
otherwise improperly managed; and is identified or listed as a hazardous waste 
by the administrator, U.S. Environmental Protection Agency (EPA) pursuant to the 
federal Solid Waste Disposal Act, as amended by the Resource Conservation and 
Recovery Act of 1976.]
   <nl>Letter-See definition for letter of competency.
 Letter of competency -<nl>A certificate<ol> [The letter] issued by the 
department <nl>confirming<ol> [stating] that <nl>an applicant meets or exceeds 
certain specified training and experience<ol> [the solid waste technician has 
met or exceeded the] requirements <nl>established for certified solid waste 
technicians<ol> [for training and certification for the specified classification 
of the program].
 [Management-The systematic control of any or all of the following activities of 
generation, source separation, collection, handling, storage, transportation, 
processing, treatment, recovery, or disposal of solid waste.]
 [Municipal solid waste-Solid waste resulting from or incidental to municipal, 
community, commercial, institutional, and recreational activities, including 
garbage, rubbish, ashes, street cleanings, dead animals, abandoned automobiles, 
and all other solid waste other than industrial solid waste.]
 [Processing-The extraction of materials, transfer, volume reduction, conversion 
to energy, or other separation and preparation of solid waste for reuse or 
disposal, including the treatment or neutralization of hazardous waste, designed 
to change the physical, chemical, or biological character or composition of any 
hazardous waste so as to neutralize such waste, or so as to recover energy or 
material from the waste, or so as to render such waste nonhazardous, or less 
hazardous; safer to transport, store, or dispose of; or amenable for recovery, 
amenable for storage, or reduced in volume.]
 [Sanitary landfill -A facility for the land disposal of solid waste which 
complies with all applicable standards and regulations so as to ensure that 
there is no reasonable probability of adverse effects on health or the 
environment from disposal of solid waste at such facility.]
 [Site operator -The holder of, or the applicant for a permit (or license) for a 
municipal solid waste site.]
 [Solid waste-Any garbage, refuse, or sludge from a waste treatment plant, water 
supply treatment plant, or air pollution control facility, and other discarded 
material, including solid, liquid, semisolid, or contained gaseous material 
resulting from industrial, municipal, commercial, mining, and agricultural 
operations, and from community and institutional activities, but does not 
include:]
[(A) solid or dissolved material in domestic sewage, or solid or dissolved 
material in irrigation return flows, or industrial discharges subject to 
regulation by permit issued pursuant to the Texas Water Code, Chapter 26 
(relating to Water Quality Control);]
[(B) soil, dirt, rock, sand, and other natural or man-made inert solid materials 
used to fill land if the object of the fill is to make the land suitable for the 
construction of surface improvements; or]
[(C) waste materials which result from activities associated with the 
exploration, development, or production of oil or gas and are subject to control 
by the Railroad Commission of Texas.]
 [Solid waste facility-All contiguous land, and structures, other appurtenances, 
and improvements on the land, used for processing, storing, or disposing of 
solid waste. A facility may be publicly or privately owned and consist of 
several processing, storage, or disposal operational units; e.g., one or more 
landfills, surface impoundments, or combinations of them.]
 Solid waste technician-An individual who is trained <nl>and experienced <ol> in 
the practical aspects of the design, operation, <nl>and/or<ol> [and] maintenance 
of a solid waste facility<nl>, activity, or operation<ol> in accordance with 
standards[, rules, or orders] established by the <nl>department<ol> [Board of 
Health].
 [Storage-The holding of solid waste for a temporary period, at the end of which 
the solid waste is processed, disposed of, or stored elsewhere.]
sec.325.385. Administration.
(a) <nl>Advisory committee<ol> [Committee].
(1) <nl>Committee membership. <ol> [Membership and appointment]. <nl>A nine-
member<ol> [An 11-member] advisory committee  <nl>to advise and assist the Texas 
Department of Health (department) with respect to<ol> [for] the Solid Waste 
Technician Training and Certification Program will be appointed by the 
commissioner <nl>of health<ol>. Members will be selected as follows:
(A) one member recommended by [each of the state organizations representing] the 
<nl>Texas<ol> Public Works Association<nl>;<ol>[,]
<nl>(B) one member recommended by the Texas Chapter of the<ol> Governmental 
Refuse Collection and Disposal Association<nl>;<ol> and [,]
<nl>(C) one member recommended by the Texas Chapter of <ol>the National Solid 
Waste Management Association;
<nl>(D)<ol>[(B)] one member <nl>representing<ol> [from] a <nl>Texas<ol> [state] 
university or technical institute offering extension courses in solid waste 
management;
<nl>(E) <ol>[(C)] one member representing a public health region of the Texas 
Department of Health;
<nl>(F)<ol>[(D)] one member who is a council member, mayor, or city manager 
<nl>of<ol> [from] a city that operates a solid waste facility and <nl>who<ol> is 
recommended by the Texas Municipal League;
<nl>(G)<ol>[(E)] one member who is a county judge or county commissioner from a 
county that operates a solid waste facility and is recommended by the Texas 
Association of Counties;
<nl>(H)<ol>[(F)]  <nl>one member employed by<ol> [two members from] a public [or 
private] solid waste management organization who <nl>is either the manager, <ol> 
[are] principal <nl>operator, <ol> [operators] or <nl>supervisor <ol> 
[supervisors] of  <nl>an operating<ol> [active] solid waste <nl>facility, 
activity, or collection system <ol> [facilities or collection systems who meet 
the basic qualifications for certification at the Class A level]; and
[(G) two members from the general public; and]
<nl>(I)  <nl>one member employed by a private solid waste management 
organization who is either the manager, principal operator, or supervisor of an 
operating solid waste facility, activity, or collection system.
<nl>(2)<ol>[(H)] <nl>Failure to nominate.<ol> Where [where] an organization or 
association fails to nominate a person <nl>to serve on the advisory committee 
<ol>, the commissioner may <nl>select<ol> [appoint] a person for that position.
<nl>(3)<ol>[(2)]  Term of office.
(A) Members <nl>of the advisory committee shall serve staggered terms of three 
years with the terms of three members expiring December 31 of each year.<ol> 
[will be selected to a three-year term, and no] <nl>Members <ol> [member] shall 
serve <nl>no<ol> more than two consecutive three-year terms. <nl>The 
commissioner shall fill a vacancy on the committee by appointing a person who 
meets the qualifications, set forth in paragraph (1) of this subsection, 
applicable to an individual eligible to serve in that particular vacant 
position.
(B) A <nl>member shall<ol> [person may] serve on the committee only so long as 
he <nl>or she<ol> represents <nl>or remains a member or employee of<ol> the 
association or <nl>organization<ol> [category] for which he <nl>or she<ol> was 
appointed.
<nl>(4)<ol>[(3)]  Organization.
(A) Annually, the <nl>advisory<ol> committee will select from its members a 
chairman and such <nl>other<ol> officers as may be needed to conduct 
<nl>committee <ol> business.
(B) A quorum of the committee will be a majority of its appointed members.
<nl>(5)<ol>[(4)]  Responsibilities. The <nl>advisory<ol> committee will:
(A) assist and advise <nl>the department <ol> in promulgating rules <nl>, 
establishing procedures, and setting<ol> [of procedure or] policies <nl>with 
respect to the Solid Waste Technician Training and Certification Program<ol> 
[develop and administer the training and certification program];
(B) identify and recommend legislation that is designed to increase the 
effectiveness of the program;
(C) assist the department in identifying training needs and make recommendations 
for developing training programs and testing protocol; and
[(D) assist the department in evaluating training and experience records of 
applicants to establish the level of classification for which the applicant is 
qualified; and]
<nl>(D)<ol>[(E)] promote the program and encourage owners/operators to employ 
technicians certified under the program.
<nl>(6)<ol>[(5)] Reimbursements. Members of the <nl>advisory <ol> committee may 
be reimbursed for travel, lodging, and meals when expenses are incurred in 
connection with the performance of duties of the committee. Reimbursement will 
be in accordance with established travel and per diem rates for state employees.
(b) <nl>Texas<ol> Department <nl>of Health<ol>.
(1) The commissioner, guided by the <nl>Texas <ol> Board of Health, 
<nl>shall<ol> [will] have overall responsibility for the administration of the 
program. <nl>The commissioner<ol> [He] may delegate to the chief, Bureau of 
Solid Waste Management, those functions necessary to administer and operate the 
program.
(2) The department <nl>may<ol> [will] establish <nl>educational, experience,<ol> 
training, and testing requirements <nl>for applicants seeking to qualify as 
solid waste technicians <ol> [to determine the qualifications of the solid waste 
technician]. The department will consider the recommendations of the 
<nl>advisory<ol> committee when establishing  <nl>such<ol> [these] 
qualifications.
(3) [The department shall provide a member to the committee, appointed by the 
commissioner from a public health region.]  <nl>To assist the advisory committee 
in carrying out its responsibilities<ol> [Further], the department shall:
(A)-(D) (No change.)
<nl>(4) The department, in carrying out the day-to-day activities of the Solid 
Waste Technical Training and Certification Program, shall:
<nl>(A)<ol>[(E)] maintain records of <nl>applicants<ol> [solid waste 
technicians] who apply for letters of competency or participate in the training 
program;
<nl>(B)<ol>[(F)] obtain, assemble, and evaluate documents and information from 
applicants;
<nl>(C)<ol>[(G)] prepare  <nl>and either<ol>[,] administer[,] or arrange for the 
giving of [tests or] examinations to applicants;
<nl>(D)<ol>[(H)] grade [tests or] examinations [for determining the competency 
of solid waste technicians];
<nl>(E)<ol>[(I)] issue the appropriate letter of competency to successful 
applicants;
<nl>(F)<ol>[(J)] notify unsuccessful applicants of test results and/or 
deficiencies in eligibility for certification; [and]
<nl>(G)<ol>[(K)] notify persons possessing a letter of competency when that 
letter is up for renewal<nl>, unless such person also possesses a non-expired, 
more advanced letter of competency in the same solid waste discipline and thus 
has no need to retain certification by renewing the less advanced letter;<ol>[.]
<nl>(H) evaluate all formal and technical training for compliance with 
department standards and requirements;
<nl>(I) evaluate requests from schools, universities, associations, professional 
organizations, companies, and others to have various training courses, seminars, 
workshops, professional conferences, and/or correspondence courses approved for 
the purpose of awarding of renewal training credits to those individuals who 
participate in those events or activities; and
<nl>(J) evaluate requests from individuals regarding the possible awarding of 
renewal training credits as a result of their participation in various training 
courses, seminars, workshops, professional conferences, and/or correspondence 
courses where the providers or sponsors of such events or activities have not 
previously sought renewal training credit approval.
sec.325.386. Application for Letter of Competency.
(a)  <nl>Persons<ol> [Solid waste technicians] desiring a <nl>particular<ol> 
letter of competency from the <nl>Texas Department of Health<ol> 
<nl>(<ol>department <nl>)<ol> shall submit an application [on a standard form], 
signed under oath, setting forth the applicant's <nl>qualifications for such 
letter<ol> [qualification]. <nl>The application shall be submitted on forms 
provided by the department.
(b) <nl>Persons currently holding a letter of competency who seek a letter of 
competency in regards to a<ol> [Applications for renewal or for] higher <nl>or 
different solid waste technician<ol> classification <nl>must<ol> [shall]  
<nl>submit to the department a new application<ol> [be submitted on a standard 
form], signed under oath, <nl>indicating that all required qualifications have 
been met with respect to such additional letter of competency <ol> and 
<nl>containing any<ol> [shall include necessary] documentation <nl>required by 
the department<ol> to <nl>confirm<ol> [establish] the applicant's 
<nl>qualifications <ol> [qualification].
(c) <nl>Applicants for all department issued letters of competency shall submit 
to the department, together with their completed application forms, the 
appropriate fee for the type of letter of competency for which they are 
applying. Fee amounts are set forth in  s325.391 of this title (relating to 
Fees).<ol> [The applicant shall include the payment of required fees.]
sec.325.387. <nl>Qualifications and Conditions for a Letter of Competency 
[Qualification].
(a) Requirements for letter of competency. Except as provided in <nl>subsections 
(c) and (f)<ol> [subsection (d)] of this section, all individuals issued a 
letter of competency shall meet the following requirements<nl>, appropriate to 
the particular letter of competency for which they are applying <ol> [based upon 
education, experience, and training credits earned (which includes an 
examination)].
(1)  <nl>Solid waste systems supervisor<ol> [Class A] letter of competency  
<nl>(formerly Class A certificate) <ol> [(solid waste facility operation)]:
(A) high school graduate or equivalent, <nl>six <ol> [five] years 
<nl>appropriate on the job<ol> experience, and <nl>successful completion of the 
primary landfill operator, senior landfill operator, and solid waste systems 
supervisor courses<ol> [120 hours of training credits]; or
(B) eight years <nl>appropriate on the job<ol> experience and <nl>successful 
completion of the primary landfill operator, senior landfill operator, and solid 
waste systems supervisor courses<ol> [120 hours of training credits]; or
(C)  college education obtained from an accredited institution may be 
substituted for experience on the basis of one year of education for one year of 
experience, up to a maximum of  <nl>three<ol> [four] years.
(2) <nl>Senior landfill operator <ol> [Class B] letter of competency 
<nl>(formerly Class B certificate)<ol> [(solid waste facility operation)]:
(A) high school graduate or equivalent, four years  <nl>appropriate on the job 
<ol> experience, and <nl>successful completion of the primary landfill operator 
and senior landfill operator courses<ol> [80 hours of training credit];
(B) six years <nl>appropriate on the job<ol> experience and <nl>successful 
completion of the primary landfill operator and senior landfill operator 
courses<ol> [80 hours of training credit]; or
(C) college education obtained from an accredited institution may be substituted 
for experience on the basis of one year of education for one year of experience, 
up to a maximum of  <nl>two<ol> [three] years.
(3) <nl>Primary landfill operator <ol> [Class C] letter of competency 
<nl>(formerly Class C certificate)<ol> [(solid waste facility operation)]:
(A) high school graduate or equivalent, two years  <nl>appropriate on the job 
<ol> experience, and <nl>successful completion of the primary landfill operator 
course<ol> [40 hours of training credit];
(B) four years <nl>appropriate on the job<ol> experience and <nl>successful 
completion of the primary landfill operator course<ol> [40 hours of training 
credit]; or
(C)  (No change.)
(4) <nl>Collection systems operator <ol> [Class D] letter of competency 
<nl>(formerly Class D certificate)<ol> [(collection system)]:
(A) high school graduate or equivalent, two years  <nl>appropriate on the job 
<ol> experience, and <nl>successful completion of the collection systems 
operator course<ol> [40 hours of training credit];
(B) four years <nl>appropriate on the job<ol> experience and <nl>successful 
completion of the collection systems operator course<ol> [40 hours of training 
credit]; or
(C) (No change.)
[(5) Provisional letter. A provisional letter may be issued upon either of the 
conditions outlined in subparagraphs (A) and (B) of this paragraph. A 
provisional letter is not renewable, and an applicant must agree to complete any 
lacking requirements for the standard letter within the time specified by the 
department and before the expiration of the provisional letter. A provisional 
letter shall require the same application fee and shall be issued for the same 
term as the corresponding letter of competency.
[(A)  Persons may be awarded a provisional letter in each class upon completing 
the required training credits (which includes passing an examination), 
completing six months in a position of responsibility that equates to the class 
of letter applied for, and possessing the minimum education requirements for 
that class, but lacking the required experience.
[(B) Persons may be awarded a provisional letter in each class upon 
demonstrating that they meet the education and experience requirements of 
paragraphs (1)-(4) of this subsection, but lack the required training credits.
[(6) Solid waste technician in training. An individual engaged in or who expects 
to be engaged in a solid waste management activity who does not meet the 
education, training, or experience requirements established for a letter of 
competency or provisional letter, may be issued a letter-solid waste technician 
in training-after performing duties similar to those performed by a solid waste 
technician for six months or after enrolling in a program of training to qualify 
for a letter of competency. The solid waste technician in training letter may be 
issued upon application and substantiation of these requirements. Such letter is 
non-renewable and expires on the day before the anniversary of the date the 
letter was awarded.
[(7)  Waiver of training credit requirements. An applicant meeting the education 
and experience requirements of a letter may submit a written request to the 
department for a waiver of training credit requirements. The department may 
grant such a request if the applicant has passed the appropriate examination 
offered by the department.]
<nl>(b) Substitution of college credit. In those instances where applicants 
propose to substitute college credits for appropriate on the job experience, 30 
hours of college credits shall equate to one year of experience.
<nl>(c) Requirements for provisional letters of competency. A provisional letter 
of competency may be issued provided the applicant meets the training 
requirements set forth in subsection (a) of this section for the particular 
letter of competency for which he or she is applying and has at least six months 
of appropriate on the job experience, but less than the amount of experience 
required for that particular letter. In those instances where the applicant is 
seeking a solid waste systems supervisor letter of competency, at least 24 
months of appropriate on the job experience shall be required for a provisional 
letter. Provisional letters of competency may not be issued for longer than four 
years and may not be renewed as provisional letters.
<nl>(d)<ol>[(b)] Training [credits]. Training <nl>for the purpose of achieving a 
particular letter of competency shall be obtained by attending <ol> [credits, 
for purposes of this section, may be earned by successfully completing] the 
course of instruction (which includes  <nl>a mandatory examination<ol> [passing 
the required examinations]) for <nl>that particular letter of competency,<ol> 
[each classification] which has been approved by the <nl>Texas Department of 
Health (<ol>department<nl>) <ol> and <nl>which is currently offered to 
applicants <ol> [given] by the  <nl>Texas<ol> Engineering Extension Service, 
accredited universities, approved technical institutes, or other 
<nl>organizations <ol> [formal programs] approved by the department. <nl>The 
number of actual classroom hours required for such courses shall be determined 
by the department.
[(1) Class A-Complete the training required for Class B and C and complete 40 
hours of approved additional training credits (which includes an examination).
[(2) Class B-Complete the training required for Class C and complete 40 hours of 
approved additional training credits (which includes an examination).
[(3) Class C-Complete 40 hours of approved training credits (which includes an 
examination).
[(4)  Class D-Complete 40 hours of approved training credits (which includes an 
examination).
<nl>(e)<ol>[(c)] <nl>Examinations required<ol> [Examination].
(1) Written <nl>examinations<ol> [examination] will be used <nl>to evaluate<ol> 
[in determining] the knowledge, ability, and judgment of a candidate. <nl>A 
candidate must pass the required examination for the particular, corresponding, 
letter of competency in order to be considered to have successfully completed 
the course.<ol> Upon petition, the department may use an oral examination to 
establish a candidate's qualification for a <nl>primary landfill operator letter 
of competency <ol> [Class C] or  <nl>a collection systems operator <ol> [D] 
letter of competency.
(2)  Examinations will normally be given by the department in conjunction with 
the training offered by [the Engineering Extension Service,] accredited 
universities, [approved] technical institutes, or other <nl>organizations<ol> 
[formal programs] approved by the department. Examinations may be offered at 
other times as the need is determined by the department.
(3) <nl>The passing score with respect to the examination for any letter of 
competency shall be 70%. Applicants who fail to pass an examination may retake 
the same examination after waiting at least 60 days.<ol> [Correctly answering 
70% of the questions on an examination constitutes a passing grade.]
<nl>(4)  Following failure of an examination, an application submitted by the 
applicant shall be held by the department for up to six months pending the 
applicant's retaking the examination. If a failed examination has not been 
successfully retaken within six months, the applicant shall be required to 
submit another application, together with appropriate fee.
[(d)  Certification by the commissioner. Persons currently engaged or who have 
been engaged in the operation or supervision of a solid waste facility or in the 
operation or supervision of a collection system, for at least six continuous 
months since January 1, 1979, who apply for a letter of competency by December 
31, 1983, and demonstrate education, training, and experience substantially 
equivalent to the requirements in subsection (a)(1)-(4) of this section 
(relating to Qualification) and who are recommended by the committee, may be 
awarded the appropriate class of letter of competency by the commissioner.]
<nl>(f) Waiver of training. An applicant meeting all the education and 
experience requirements for a particular letter of competency may, by way of a 
written request, ask the department to waive part or all of the formal training 
requirement specific to that letter of competency. In the request, the applicant 
must describe what other suitable training has been acquired and explain why the 
regular formal training is not necessary. If the department agrees to waive the 
requirement for a particular training course, then the applicant shall be 
allowed to take the examination, appropriate for the particular letter of 
competency being sought, without first having to attend the formal training 
course normally required for that particular letter. Waivers of training with 
respect to issuance of a particular letter of competency are contingent upon the 
applicant passing the appropriate examination on their first attempt.
<nl>(g)<ol>[(e)] Term of the letter of competency. <nl>Letters of competency 
<ol> [The letter of competency] <nl>, including provisional letters, <ol> shall 
be issued for a term of four years and shall expire on the day before the 
anniversary of the date the letter was awarded.
sec.325.388. Renewal.
<nl>(a)  A letter of competency may be renewed, unless revoked for cause, 
<nl>either<ol> by <nl>reexamination<ol> [examination] or by <nl>acquiring newly 
earned<ol> training credits. <nl>All renewal training credits shall be earned, 
i.e., training courses or events attended after the date of issuance, but prior 
to the date of expiration, of the letter of competency for which renewal is 
being sought. <ol> [For renewal without examination, the applicant shall make 
application no later than 90 days prior to expiration of the current letter and 
shall provide evidence of training credits as follows.] Renewal of <nl>a 
letter<ol> [letters] of competency <nl>by training <ol> [without examination] 
requires that the applicant <nl>participate in training courses, conferences, 
meetings or seminars, correspondence courses, or other activities <ol> [complete 
approved training courses offered by the Engineering Extension Service, 
accredited universities or approved technical institutes, or other formal 
programs] approved by the <nl>Texas Department of Health<ol> (department). 
<nl>The number of approved training hours required for renewal of the various 
department issued letters of competency are as follows:
(1) <nl>solid waste systems supervisor<ol> [Class A]- <nl>36<ol> [40] hours;
(2) <nl>senior landfill operator <ol> [Class B]-<nl>28<ol> [32] hours;
(3) <nl>primary landfill operator <ol> [Class C] -<nl>20 <ol> [24] hours; and
(4) <nl>collection system operator <ol> [Class D]-<nl>20<ol> [24] hours.
<nl>(b) Procedures for receiving renewal training course approval are as 
follows.
<nl>(1) Schools, organizations, or associations requesting approval for training 
courses, conferences, meetings, workshops, seminars, and/or correspondence 
courses shall submit a request in writing so that it is received by the 
department no later than 60 days prior to the beginning date of the event in 
question.
<nl>(A)  Requests shall include a schedule of events or topics to be presented, 
speakers names, and the inclusive dates of the event.
<nl>(B) No later than 30 days after completion of the approved event, the 
organization must submit a roster of those who participated. Such roster must 
include the name, social security number, telephone number, and indicate the 
exact number of sessions attended.
<nl>(2) Individuals requesting renewal training credit approval must submit the 
request in writing so that it is received by the department no later than 30 
days prior to the beginning date of the event in question.
<nl>(A) Individual requests shall include a schedule of the events or topics to 
be presented, speakers names, and inclusive dates of event.
<nl>(B) Individuals who receive approval from the department shall provide the 
department verification of their attendance at the event no later than 30 days 
after the conclusion of the event.
<nl>(c) To insure there will be no lapse in certification, complete applications 
for letter of competency renewal, together with required renewal fee, must be 
received by the department no later than 30 days prior to the expiration date 
shown on the particular letter of competency for which renewal is sought.
<nl>(d)  Holders of letters of competency that have been expired for longer than 
six months shall be required to succussfully retake the appropriate examination 
prior to having such letter reinstated.
<nl>(e) Holders of letters of competency that have been expired for longer than 
24 months may also be required to retake the appropriate course prior to having 
such letter reinstated.
sec.325.389. Revocation.  The commissioner <nl>of health<ol> may revoke a letter 
of competency if it is found that the person to whom the letter is issued has 
practiced fraud or deceit in making application for a letter of competency or in 
<nl>the<ol> performance of <nl>his/her <ol> duties as a solid waste technician 
or that <nl>the person has violated any rule or order of the Texas Department of 
Health (department)<ol> [reasonable care or judgment was not used in performance 
of duties]. The decision may be appealed in accordance with the Administrative 
Procedure and Texas Register Act, <nl>Texas Civil Statutes, Article 6252-13a, 
and the department's formal hearing procedures in Chapter 1 of this title 
(relating to Texas Board of Health).
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 29, 1991.
TRD-9113341
Robert A. MacLean, M.D.
Deputy Commissioner
Texas Department of Health
Proposed date of adoption: January 25, 1992
For further information, please call: (512) 406-7715
       
25 TAC sec.sec.325.382, 325.383, 325.390, 325.391
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Health or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin.)
The repeals are proposed under the Health and Safety Code, sec.361.011, which 
establishes the department's jurisdiction to manage and control solid waste; 
sec.361.024, which provides the Texas Board of Health the authority to adopt 
rules to manage and control municipal solid waste; and sec.12.001 which provides 
the board with the authority to adopt rules for the performance of every duty 
imposed by law on the board, the Texas Department of Health, and the 
commissioner of health. The proposed rules affect the Health and Safety Code 
sec.361.027.
sec.325.382. General.
sec.325.383. Classification of Municipal Solid Waste Sites.
sec.325.390. Recommendations for Solid Waste Facility Owners/Operators.
sec.325.391. Fees.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 29, 1991.
TRD-9113340
Robert A. MacLean, M.D.
Deputy Commissioner
Texas Department of Health
Proposed date of adoption: January 25, 1992
For further information, please call: (512) 406-7715
       
25 TAC sec.sec.325.382, 325.383, 325.390-325.392
The new sections are proposed under Health and Safety Code, sec.361.011, which 
establishes the department's jurisdiction to manage and control solid waste; 
sec.361.024 which provides the Texas Board of Health the authority to adopt 
rules to manage and control municipal solid waste; and sec.12.001 which provides 
the board with the authority to adopt rules for the performance of every duty 
imposed by law on the board, the Texas Department of Health, and the 
Commissioner of Health. The proposed rules affect sec.361.027 of the Health and 
Safety Code.
sec.325.382. Program Objectives.
(a) The Texas Board of Health finds that:
(1) solid waste facilities or activities which fail to meet department operating 
standards frequently do so, due to a lack of understanding, on the part of 
operators and operations managers, with respect to good operating practices and 
because of a lack of knowledge with respect to regulations and permit 
requirements pertaining to that particular facility or activity;
(2)  citizen opposition to the siting of new solid waste facilities is based, in 
part, on reported, improper operation and control known or believed to have 
occurred at existing facilities;
(3) remedial action to correct improper operations is more costly than 
continuous practice of good operating procedures;
(4) facility operators and operations managers who are certified as meeting 
established qualifications with respect to technical training and operational 
experience, develop a sense of professionalism and pride in their position; and
(5) the employment of qualified persons increases efficiency and safety, lowers 
maintenance and operating costs, and reduces the potential of public health and 
environmental risks associated with solid waste processing, storage, and 
disposal.
(b) The Texas Department of Health (department) through the solid waste 
technician training and certification program seeks to safeguard the health and 
welfare of the citizens of the state and to protect the environment through the 
proper, safe, and proficient management of solid waste. In order to carry out 
its responsibilities, the department shall:
(1) establish certification criteria (including examinations);
(2) develop educational, technical training, and on-the-job experience standards 
for operators and operations managers of various type solid waste facilities or 
activities;
(3) assure that approved training courses are available for qualified persons 
seeking to obtain various solid waste technician letters of competency; and
(4) promote the development of renewal training (continuing education courses) 
for solid waste technicians seeking to maintain their existing letters of 
competency or to learn new skills that will assist them in their profession.
sec.325.383. Program Description.
(a) The Texas Board of Health has adopted municipal solid waste management 
regulations containing standards and requirements with respect to the handling 
and management of municipal solid waste to include collection, transportation, 
storage, processing, recycling, and disposal.
(b) To help meet the training needs of operators and managers of various 
municipal solid waste facilities, activities, and operations, the department has 
developed requirements for the following municipal solid waste technician 
letters of competency.
(1) Solid waste systems supervisor letter of competency. The solid waste systems 
supervisor letter of competency is designed for management and supervisory 
personnel with responsibility for overseeing or directing the management of 
various solid waste facilites, activities, or operations. Prior to the effective 
date of these rules, the Solid Waste Systems Supervisor Letter of Competency was 
referred to as a Class A Solid Waste Technician Letter of Competency.
(2) Senior landfill operator letter of competency. The senior landfill operator 
letter of competency is designed for personnel having responsibility for the on-
site, day-to-day management of a municipal solid waste landfill. Prior to the 
effective date of these rules, the senior landfill operator letter of competency 
was referred to as a Class B solid waste technician letter of competency.
(3) Primary landfill operator letter of competency. The primary landfill 
operator letter of competency is designed for personnel having responsibility 
for the immediate supervision of other landfill employees and/or responsibility 
for the on-site, day-to-day management of a landfill that receives for disposal 
less than 10 tons of waste per day. Prior to the effective date of these rules, 
the Primary landfill operator letter of competency was referred to as a Class C 
solid waste technician letter of competency.
(4) Collection systems operator letter of competency. The collection systems 
operator letter of competency is designed for personnel engaged in municipal 
solid waste collection, transportation, and/or transfer activities and/or who 
are responsible for the day-to-day management or supervision of other employees 
engaged in such activities. Prior to the effective date of these rules, the 
collection systems operator letter of competency was referred to as a Class D 
solid waste technician letter of competency.
(c) Qualification requirements for specific letters of competency are described 
in sec.325.387 this title (relating to Qualifications and Conditions for a 
Letter of Competency).
sec.325.390. Reciprocity.  The Texas Department of Health may issue letters of 
competency, without examinations, to applicants who hold valid certifications 
issued under laws of any state, territory, or possession of the United States of 
America or any country provided:
(1) the certification requirements in the state which issued the certificate are 
essentially equal to the provisions and requirement of these sections;
(2) the applicant passed a written examination in obtaining the out-of-state 
certificate;
(3) the corresponding state reciprocates with operators holding Texas 
certificates;
(4) the applicant lives in this state or is employed in solid waste management 
activities in Texas; and
(5) the applicant has paid the appropriate fee.
sec.325.391. Owner/Operator Responsibilities.
(a) The following recommendations, with respect to solid waste technician 
certification, are offered to owners/operators of municipal solid waste 
landfills permitted or otherwise authorized under this subchapter.
(1) Owners/operators of landfills, receiving for disposal more than 10 tons of 
waste per day, are encouraged to take measures to insure that, by not later than 
March 1, 1992, the day-to-day operations of such facilities are under the direct 
on-site supervision of a municipal solid waste technician who holds either:
(A)  a senior landfill operator letter of competency (Class B letter, if issued 
prior to March 1, 1992); or
(B) a solid waste systems supervisor letter of competency (Class A letter, if 
issued prior to March 1, 1992).
(2)  Owners/operators of landfills, receiving for disposal more than 10 tons of 
waste per day, are also encouraged to take measures to insure that, by not later 
than September 1, 1993, the overall management of such facilities are under 
direction of a facility manager who holds a solid waste systems supervisor 
letter of competency (Class A letter, if issued prior to March 1, 1992).
(3) Owners/operators of landfills, receiving for disposal less than 10 tons of 
waste per day, are encouraged to take measures to insure that, by not later than 
December 1, 1992, the day-to-day operations of such facilities are under the 
direct on-site supervision of a municipal solid waste technician who holds 
either:
(A) a primary landfill operator letter of competency (Class C letter, if issued 
prior to March 1, 1992);
(B) a senior landfill operator letter of competency (Class B letter, if issued 
prior to March 1, 1992); or
(C) a solid waste systems supervisor letter of competency (Class A letter, if 
issued prior to March 1, 1992).
(4)  Owners/operators of landfills, receiving for disposal less than 10 tons of 
waste per day, are also encouraged to take measures to insure that, by not later 
than December 1, 1993, the overall management of such facilities are under 
direction of a facility manager who holds a solid waste systems supervisor 
letter of competency (Class A letter, if issued prior to March 1, 1992).
(b) The following recommendations, with respect to solid waste technician 
certification, are offered to owners/operators of municipal solid waste 
collection and/or transportation systems and to owners/operators of solid waste 
transfer stations.
(1) Owners/operators of municipal solid waste collection, transportation, and/or 
transfer station systems, which handle more than 10 tons of waste per day, are 
encouraged to take measures to insure that, by not later than December 1, 1992, 
the day-to-day operations of such systems or facilities are under the 
supervision of a municipal solid waste technician who holds a collection system 
operator letter of competency (Class D letter, if issued prior to March 1, 
1992).
(2) Owners/operators of municipal solid waste collection, transportation, and/or 
transfer station systems, which handle more than 10 tons of waste per day, are 
also encouraged to take measures to insure that, by not later than December 1, 
1993, the overall management of such systems or facilities are under direction 
of a system or facility manager who holds a solid waste systems supervisor 
letter of competency (Class A letter, if issued prior to March 1, 1992).
(3) Owners/operators of municipal solid waste collection, transportation, and/or 
transfer station systems, which handle less than 10 tons of waste per day, are 
encouraged to take measures to insure that, by not later than March 1, 1994, the 
day-to-day operations of such systems or facilities are under the supervision of 
a municipal solid waste technician who holds a collection system operator letter 
of competency (Class D letter, if issued prior to March 1, 1992).
sec.325.392. Fees.
(a) The following fees are established for both initial and renewal Letter of 
Competency applications (including provisional letters):
(1) solid waste systems supervisor-$40;
(2)  senior landfill operator-$30;
(3) primary landfill operator-$20; and
(4) collection system operator-$20.
(b) Fees are non-refundable, except in those cases where overpayment has 
occurred.
(c)  The appropriate fee shall accompany the application and may be paid by 
personal check, cashier's check, or money order made payable to TDH-SWT.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 29, 1991.
TRD-9113339
Robert A. MacLean, M.D.
Deputy Commissioner
Texas Department of Health
Proposed date of adoption: January 25, 1992
For further information, please call: (512) 406-7715
       
Subchapter Z. Waste Minimization and Recyclable Materials. Newsprint Recycling.
25 TAC sec.sec.325.1171-325.1176
The Texas Department of Health proposes new sec.sec.325.1171-325.1176 to 
Subchapter Z of the Municipal Solid Waste Management Regulations, concerning 
newsprint recycling. The proposed new sections cover requirements for newspaper 
publishers with respect to newsprint recycling and establish guidelines designed 
to standardize reporting procedures regarding the success of newspaper and 
newsprint recycling activities. The new sections are in response to the 
requirements of Senate Bill 1340, 72nd Texas Legislature (1991), which amended 
the Solid Waste Disposal Act, Health and Safety Code, Chapter 361.
Stephen Seale, Chief Accountant III, Budget Division, has determined that for 
the first five year period there will be no fiscal implications for state 
government as a result of administering the proposed new sections. State 
resources required to receive and analyze submitted data, develop an annual 
report, and attend various meetings will be provided by the department's Waste 
Minimization and Recycling Office at no additional cost in terms of either 
personnel, supplies, or administration. There will be no fiscal implications to 
local government as a result of the proposed new sections.
Mr. Seale also has determined that for each year of the first five years the 
sections are in effect the primary public benefit, as a result of administering 
the rules as proposed, will be the increase in collective knowledge. To the 
extent that voluntary compliance with the "target" recycled newsprint 
utilization requirements is realized, the proposed new sections will result in 
indirect benefits to the public in terms of overall energy savings, conservation 
of natural resources, and the non-utilization of valuable landfill capacity.
The only businesses affected by the proposed new sections are Texas newspaper 
publishers. Publishers who maintain records and file reports with the state 
will, as a result of requirements in the new proposed sections, experience 
additional annual costs of between $25 and $50 for the first five years that the 
rules are in effect. Small businesses will only be affected by the proposed new 
sections if they are involved in newspaper publishing, with the expected cost of 
compliance with the proposed mandatory recordkeeping and reporting requirements 
being between $25 and $50 per year. The new sections will have no impact on 
individuals or on local employment.
Five public hearings to receive comments on the proposed rules have been 
scheduled, as follows: Friday, November 22, 1991, 1 p.m., Community Room, Mahon 
Public Library, 1306 Ninth Street, Lubbock; Monday, December 2, 1991, 1 p.m., 
Auditorium, Texas Department of Health, 1100 West 49th Street, Austin; Tuesday, 
December 3, 1991, 1 p.m., Short Course Center, Texas State Technical College 
(TSTC), 24 Boxwood, Harlingen; Wednesday, December 4, 1991, 1 p.m., City Council 
Chambers, 317 West College, Grand Prairie; and Thursday, December 5, 1991, 1 
p.m. , Bear Creek Park Agricultural Service Building, Two Abercrombie Drive, (2 
3/4 miles north of the intersection of IH 10 and Highway 6, at intersection of 
Patterson Road and Bear Creek Drive), Houston.
Written comments will also be considered if received by 5 p.m., Monday, December 
9, 1991. Written comments should be mailed to: T. A. Outlaw, Jr., P.E., Chief, 
Bureau of Solid Waste Management, Texas Department of Health, 1100 West 49th 
Street, Austin, Texas 78756-3199. Telephone inquiries may be made by contacting 
D. E. Balusek or John Butler at 1-800-458-9796.
The new sections are proposed under the Solid Waste Disposal Act, Health and 
Safety Code, sec.361.011, which provides the department with the authority to 
manage and control solid waste management; and sec.361.024, which provides the 
Texas Board of Health the authority to adopt rules to manage and control 
municipal solid waste; sec.361.430, which specifically authorizes the department 
to promulgate rules for the establishment of a newsprint recycling program for 
the state; and sec.12.001 which provides the Texas Board of Health with the 
authority to adopt rules for the performance of every duty imposed by law on the 
Texas Board of Health, the Texas Department of Health, and the Commissioner of 
Health. The new sections will affect sec.361.430 of the Health and Safety Code.
sec.325.1171. Purpose and Definitions.
(a) Purpose. These sections set forth voluntary newsprint recycling target 
requirements for newspaper publishers, and contain procedures publishers must 
follow with respect to recordkeeping and reporting recycled newsprint use 
activities.
(b)  Applicability. These sections are applicable to every newspaper printing 
and publishing operation in this state that publishes, sells, and distributes 
newspapers.
(c) Definitions. The following words, terms, and abbreviations when used in 
these sections, shall have the following meanings, unless the context clearly 
indicates otherwise requires.
(1) Deinked fiber-A fiber which has undergone the deinking process.
(2) Deinking process-A process by which most of the ink, filler, coating, and 
other extraneous (non-cellulose) material is removed from printed or unprinted 
paper.
(3) Newspaper-A publication that is printed on newsprint and published, sold, 
and distributed in the state, both daily and non-daily, to disseminate current 
news and information of general interest to the public.
(4)  ONP-Old newspapers.
(5) Newspaper publisher-An individual or corporate group of newspaper publishers 
which use newsprint in a newspaper publishing operation.
(6) Newsprint manufacturer-A business which makes newsprint.
(7) Virgin newsprint-Newsprint which contains 100% new materials in its 
formation.
(8) Recycled newsprint-Newsprint which contains at least 10% postconsumer waste 
by weight. Deinked fiber qualifies as postconsumer waste content in recycled 
newsprint.
(9) Metric ton-1,000 kilograms. To convert pounds to metric tons, the number of 
pounds need to be divided by 2,204.6.
sec.325.1172. General Newsprint Requirements.
(a) Percentage requirements. In compliance with the state policy of encouraging 
newspaper publishers to promote recycling, the following industry- wide figures 
representing total consumption of recycled newsprint by all Texas newspapers are 
established:
(1) 10% by the end of the calendar year 1993;
(2)  20% by the end of the calendar year 1997; and
(3) 30% by the end of the calendar year 2000.
(b) Recordkeeping. Appropriate purchase and delivery receipt records shall be 
maintained. A Texas Daily Newspaper Association (TDNA) Newsprint Order Form 
(available through TDNA) may be used to maintain and verify records. It is 
required that newspapers maintain such records for three years.
(c) Comparable price, quality, and availability factors. Texas newspaper 
publishers are urged to voluntarily increase purchases of recycled newsprint 
under the following:
(1)  availability within a reasonable period of time with respect to existing 
supply and demand factors in the industry;
(2) net cost of utilizing recycled newsprint compared to virgin newsprint; and
(3) quality factors (such as brightness, opacity, and cross machine tear 
strength) of recycled newsprint compared to virgin newsprint.
sec.325.1173. Requirements of Texas Department of Health. <ol> The department 
shall have be responsible for assuring easy access of information among all 
parties affected by these sections and for establishing a data filing system 
which will allow all parties to easily monitor the progress of the recycled 
newsprint consumption program. Specifically, the department shall:
(1) maintain listings of, and data from, municipalities, towns, local 
organizations, and other generators of recyclable paper and newsprint in the 
state concerning both present and planned newsprint recycling and collection 
activities and the overall availability of such recyclable materials within the 
state;
(2) provide to recyclers of old newspapers (ONP) and post-consumer paper 
material acceptability requirements and specifications with respect to material 
destined for de-inking plants and recycled paper mills;
(3) maintain a roster of current newspaper publishers, wastepaper dealers, paper 
and paperboard mills who buy, sell, recover, or consume wastepaper in Texas and 
in the other states;
(4) in cooperation with other state agencies, state officials, publishers and 
others interested parties, assist in the development of those education 
strategies and market development programs, described in the Health and Safety 
Code, sec.361.432, which are designed to promote newsprint recycling; and
(5) work with Texas Daily Newspaper Association to monitor publisher problems 
and issues regarding newsprint quality and availability of recycled newsprint.
sec.325.1174. Reports.
(a) Preprinted report. Newspaper publishers may use a standard form provided by 
the department.
(b) Due date. Texas newspaper publishers shall be responsible for returning the 
completed, preprinted report to the Commissioner on or before January 31 of each 
year.
(c) Report content. The following information shall be included in the annual 
report:
(1) name, mailing address, physical address and telephone number of the 
newspaper or corporate media group from where newsprint purchases were made 
during the preceding calendar year should be filled in on the line provided on 
the preprinted postcard;
(2) the total amount of newsprint purchased during calendar year (in metric 
tons);
(3) the total amount of newsprint purchased with recycled content during the 
calendar year (in metric tons);
(4) average percentage of recycled content;
(5) in the event the publisher fails to meet the voluntary goals for the 
preceding year, further information indicating:
(A) whether or not the publisher was able to obtain sufficient quantities of 
recycled newsprint on a timely basis at same net prices and of satisfactory 
quality;
(B)  whether or not the publisher attempted to obtain recycled newsprint from 
every producer of recycled newsprint that offered to sell recycled newsprint to 
the publisher during the preceding calendar year; and
(C) such publisher's efforts to obtain recycled newsprint, including the name 
and address of each producer of recycled newsprint that the publisher contacted 
and the name and telephone number of the contact person at each of the 
producers.
sec.325.1175. Review.  The department shall schedule periodic meetings with 
representatives from the newspaper publishing industry to evaluate the voluntary 
guidelines and requirements set forth in these sections.
sec.325.1176. Enforcement.  The department may adopt any future mandatory 
enforcement measures if it is determined that newspaper publishers are not 
meeting the target percentages prescribed in  s325.1172 (a) of this title 
(relating to General Newsprint Requirements).
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 29, 1991.
TRD-9113337
Robert A. MacLean, M.D.
Deputy Commissioner
Texas Department of Health
Proposed date of adoption: January 25, 1992
For further information, please call: (512) 458-9796 or 1-800-458-9796
       
TITLE 28. INSURANCE
Part I. Texas Department of Insurance
Chapter 7. Corporate and Financial Regulation
Subchapter A. Examination and Corporate Custodian and Tax
28 TAC sec.7.76
The State Board of Insurance proposes new sec.7.76, concerning annual and 
quarterly statement diskette filing requirements for financial activities by 
certain insurance companies and other entities regulated by the Texas Department 
of Insurance. This new section is necessary to facilitate appropriate reporting 
by affected entities and to provide for timely and reliable review can produce 
fast action when necessary to maintain a regulated entity in sound financial 
condition that will protect policyholders and other consumers. Section 7.76 
would require that, in 1992, certain insurance companies and other regulated 
entities must provide the National Association of Insurance Commissioners with 
machine-readable diskettes containing financial information concerning 
activities during the 1991 and 1992 calendar years. The section adopts by 
reference the diskette specification manuals which specify the form and content 
of computerized data that certain insurance companies and other regulated 
entities must provide on the diskettes. The specification manuals require 
information concerning the financial condition and business operations and 
activities of the regulated entities. The department has filed, with the Office 
of the Secretary of State, Texas Register Section, copies of the specification 
manuals proposed for adoption by reference. Other copies of these diskette 
specification manuals as proposed are available for inspection in the office of 
the Financial Analysis Division of the Texas Department of Insurance, 333 
Guadalupe Street, Austin.
Scott Nance, deputy insurance commissioner for financial analysis, has 
determined that for the first five-year period the section is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the section, and there will be no effect on local 
employment or local economy. The anticipated economic cost to small business and 
other person who are required to comply with the proposed section depends on the 
method of compliance the regulated entity selects. If a regulated entity elects 
to purchase electronic data processing equipment and to prepare diskettes 
internally, the anticipated maximum cost of compliance would be $7,500 for the 
first year, and $1,200 for each of the next four years. If the regulated entity 
chooses to use an independent consultant or vendor to prepare diskettes adequate 
to comply with the requirements of this section, the anticipated possible 
economic cost of compliance would be between $600 and $3,500 for each year of 
the fist five years that the proposed section will be in effect, with the exact 
cost depending on the fee schedule of the independent consultant or vendor whom 
the regulated entity chooses to utilize. On the basis of cost per hour of labor, 
there is no expected difference in cost of compliance between small businesses 
affected by the section.
Mr. Nance, also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the adoption of requirements and instructions to facilitate 
appropriate reporting by regulated entities and to facilitate review by the 
Texas Department of Insurance of reported information. The anticipated economic 
cost to persons who are required to comply with the proposed section will be the 
same as that described previously as the cost to small businesses.
Comments of the proposal may be submitted to Scott Nance, Deputy Insurance 
Commissioner for Financial Analysis, Mail Code 303-1A, Texas Department of 
Insurance, P.O. Box 149099, Austin, Texas 78714-9099.
The new section is proposed under the Texas Insurance Code, Articles 1.04, 1. 
11, 3.07, 6.11, 6.12, 8.07, 8.08, 8.21, 8.24, 10.30, 11.06, 11.19, 15.15, 15.16, 
17.22, 17.25, 18.12, 19.08, 20.02, 21.21, 21.43, 21.54, 22.06, and 22.18. The 
Insurance Code, Article 1.04, authorizes the Texas Department of Insurance to 
determine policy and rules. The Insurance Code, Article 1.11, authorizes the 
board to change the form of the statement blanks and other reporting forms as 
shall seem to its best adapted to elicit a true exhibit of the financial 
condition and the methods of transacting the business of insurers and other 
regulated entities, and requires certain insurers and other regulated entities 
to file machine-readable diskettes with the National Association of Insurance 
Commissioners. The Insurance Code, Article 21.21, prohibits any person engaged 
in the business of insurance form filing with any public official any false 
statement of financial condition of an insurer with intent to deceive and 
requires that all statements made by person sin the business of insurance be 
truthful and not misleading. The Insurance Code, Article 21.43, requires that 
the provisions of the Insurance Code are conditions on which foreign insurance 
corporations are permitted to do business in this state and requires foreign 
insurers to comply with the provisions of the Insurance Code. The Insurance 
Code, Articles 3.07, 6.11, 6.12, 6.12, 8.07, 8.08, 8.21, 8.24, 10.30, 11.06, 
11.19, 15.15, 15.16, 17.22, 17.25, 18.12, 19.08, 20.02, 21.54, 22.06, and 22.18 
requires the filing of financial reports and other information by insurers and 
certain other entities regulated by the board, applies particular statutory law 
respecting reports by those insurers and certain other entities, and specifies 
particular rule-making authority relating to those insurers and certain other 
entities.
sec.7.76. Requirements for Annual and Quarterly Statement Diskette Filing in 
1992 Concerning Financial Activities During 1991 and 1992.
(a) This section applies to the following entities:
(1) stock life companies;
(2) mutual life companies;
(3) group hospital service corporation;
(4) stipulated premium companies;
(5) stock fire companies;
(6) stock casualty companies;
(7) stock fire and casualty companies;
(8) mutual fire companies;
(9) mutual casualty companies;
(10) mutual fire and casualty companies;
(11) county mutual companies;
(12) Lloyds;
(13) reciprocals;
(14) risk retention groups; and
(15) fraternal benefit societies.
(b) Concerning activities during calendar years 1991 and 1992, each and every 
stock life company, mutual life company, group hospital service corporation, and 
stipulated premium company shall provide the National Association of Insurance 
Commissioners with machine-readable diskettes containing computerized financial 
data. In 1992, each of these entities shall file diskettes in addition to and at 
the time of filing its Form 1 annual statement and its quarterly statements with 
the National Association of Insurance Commissioners. The data on the diskettes 
shall be in the form and content specified in the current annual statement 
diskette filing specifications for life, accident, and health for the year ended 
December 31, 1991, and the 1992 quarterly statement diskette filing 
specifications, which the department adopts by reference under this subsection; 
provided, however, any Texas stipulated premium company which is authorized to 
write life insurance only, and which collected premium income in the prior 
calendar years of less than $1 million, and which had a profit from operations 
in the prior two calendar years, is not required to file quarterly diskettes 
with the National Association of Insurance Commissioner. Nothing in this section 
prohibits the Texas Department of Insurance form requiring any insurance company 
or other regulated entity from filing periodic financial reports with the Texas 
Department of Insurance pursuant to other rule or statutory authority. The 
annual and quarterly statement diskette filling specification manuals are 
published by the National Association of Insurance Commissioners and may be 
obtained from the Publications Division, 120 West 12th Street, Suite 1100, 
Kansas City, Missouri 64105.
(c) Concerning activities during calendar years 1991 and 1992, each and every 
stock fire company, stock casualty company, stock fire and casualty company, 
mutual fire company, mutual casualty company, mutual fire and casualty company, 
county mutual company, Lloyds, reciprocal, and risk retention group shall 
provide the National Association of Insurance Commissioners with machine-
readable diskettes containing computerized financial data. In 1992, each of 
these entities shall file diskettes in addition to and the time of filing its 
Form 2 annual statement and its quarterly statements with the National 
Association of Insurance Commissioners. The data on the diskettes shall be in 
the form and content specified in the current annual statement diskette filing 
specification manuals for fire and casualty for the year ended December 31, 
1991, and the 1992 quarterly statement diskette filing specifications, which the 
department adopts by reference under this subsection. The annual and quarterly 
statement diskette filing specification manuals are published by the National 
Association of Insurance Commissioners and may be obtained from the Publications 
Division, 120 West 12th Street, Suite 1100, Kansas City, Missouri 64105.
(d) Concerning activities during calendar year 1991, each and every fraternal 
benefit society shall provide the National Association of Insurance Commissions 
with machine readable diskettes containing computerized financial data. In 1992, 
each of these entities shall file diskettes in addition to and at the time of 
filing its Form 4 annual with the National Association of Insurance 
Commissioners. The data on the diskettes shall be in the form and content 
specified in the current annual statement diskette filing specifications for 
fraternal for the year ended December 31, 1991, which the board adopts by 
reference under this subsection. The annual statement diskette filing 
specification manual is published by the National Association of Insurance 
Commissioners and may be obtained from the Publication Division, 120 West 12th 
Street, Suite 1100, Kansas City, Missouri 64105.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113438
Linda K. von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 463-6328
       
Part II. Texas Workers' Compensation Commission
Chapter 116. Subsequent Injury Fund
28 TAC sec.116.11, sec.116.12
The Texas Workers' Compensation Commission proposes new  s116.11 and sec.116.12, 
concerning reimbursement from the subsequent injury fund to insurance carriers 
who have overpaid benefits pursuant to interlocutory orders or decisions of the 
appeals panel. Section 116.11 describes the circumstances permitting a carrier 
to request reimbursement, and sets out the requirements for framing and filing 
the request. Section 116.12 establishes priorities for claims against the fund, 
provides for reimbursement to be paid annually, describes the procedures to be 
followed by the fund's administrator in reviewing and responding to requests for 
reimbursement, and permits the administrator to suspend action on requests for 
reimbursement for payments pursuant to interlocutory orders until final 
resolution of liability for those payments.
Andrew Thigpen, associate director, Financial Management, has determined that 
for each year of the first five-year period the new sections are in effect, 
there will be no fiscal implications for the state or local government as a 
result of enforcing or administering the new sections.
There is no anticipated impact on employment, locally or statewide, as a result 
of implementing the sections as proposed.
Mr. Thigpen also has determined that, for each of the first five years at the 
new sections are in effect, the public benefit anticipated as a result of 
enforcing the new sections will be implementation of the new Texas Workers' 
Compensation Act. The only costs of compliance for small businesses are the 
minimal costs to small workers' compensation insurance carriers for reproducing 
the documents required to support a request for reimbursement, and first class 
postage, if the request is filed by mail. The costs for small carriers are 
proportionate to those for large carriers, based on market share. There is no 
anticipated economic cost to persons required to comply with the new sections.
Comments on the proposal may be submitted to Susan M. Kelley, General Counsel, 
Texas Workers' Compensation Commission, 4000 South IH-35, Austin, Texas 78704. 
Comments will be accepted for 30 days after publication of this proposal in the 
Texas Register.
The new sections are proposed under Texas Civil Statutes, Articles 8308-2. 
09(a), which authorizes the commission to adopt rules necessary to administer 
the Texas Workers' Compensation Act, and Article 8308-6.15(e), which requires 
the commission to adopt rules to provide for a periodic reimbursement schedule.
sec.116.11. Request for Reimbursement from the Subsequent Injury Fund for 
Overpayment of Benefits.
(a) A carrier may request reimbursement from the subsequent injury fund for an 
overpayment of income, death or medical benefits when:
(1) the carrier has paid benefits pursuant to an interlocutory order entered by 
a benefit review officer, and a hearing officer or arbitrator subsequently 
reverses the interlocutory order, or modifies it by reducing the amount of 
benefits due; or
(2) the carrier has paid benefits pursuant to a decision of the appeals panel, 
and the court of last resort reverses the decision, or modifies it by reducing 
the amount of benefits due.
(b) The request for reimbursement shall:
(1) be in writing;
(2) state the total amount of overpayment;
(3)  enclose copies of:
(A) the interlocutory order and the decision of the hearing officer or 
arbitrator; or
(B) the appeals panel's decision and the judgment of the court of last resort; 
and
(4) be filed with the administrator of the subsequent injury fund.
sec.116.12. Periodic Reimbursement Schedule for Overpayment of Benefits.
(a) Claims against the subsequent injury fund shall be paid in the following 
priority:
(1) claims by injured workers for lifetime benefits, as provided by the Act, 
Article 8308-4.47; and
(2) claims by insurance carriers for reimbursement, made pursuant to Article 
8308-6.15 and 8308-6.42 of the Act, and  s116.11 of this title (relating to 
request for Reimbursement from the Subsequent Injury Fund for Overpayment of 
Benefits).
(b) At the end of each state fiscal year, the administrator of the subsequent 
injury fund shall review:
(1) the fund's available balance and projected revenues and liabilities;
(2) the current claims against the fund, in the order of priorities set out in 
subsection (a) of this section; and
(3) all requests for reimbursement received during the prior fiscal year, except 
as provided in subsection (e) of this section.
(c) After review, the fund's administrator shall, no later than October 30, 
enter appropriate orders for reimbursement. Each order shall specify whether the 
reimbursement shall be paid periodically or in a lump sum.
(d) The orders shall be submitted to the state comptroller for payment. The 
requesting carrier shall be sent a copy of the pertinent order.
(e) If the carrier requests reimbursement under sec.116.11(a)(1) of this title 
(relating to Request for Reimbursement from the Subsequent Injury Fund for 
Overpayment of Benefits), and the hearing officer's decision is subsequently 
appealed, the administrator will refrain from acting on the request until final 
resolution of the issue by the appeals panel or the court of last resort.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113440
Susan M. Kelley
General Counsel
Texas Workers' Compensation Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 440-3972
       
Chapter 130. Benefits-Impairment and Supplemental Income Benefits
Subchapter A. Impairment Income Benefits
28 TAC sec.130.8
The Texas Workers' Compensation proposes new sec.130.8, concerning initiating 
payment of impairment income benefits. The new section establishes that an 
injured worker who receives an impairment rating greater than zero is entitled 
to impairment income benefits regardless of whether the worker suffered more 
than seven days of disability, and provides time frames for initiating payment 
of impairment income benefits under various conditions.
Andrew Thigpen, associate director, financial management, has determined that 
for the first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section.
There is no anticipated impact on employment, locally or statewide, as a result 
of implementing this new section as proposed.
Mr. Thigpen, also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be implementation of the new Texas Workers' Compensation Act. There 
will be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the section as proposed.
Comments on the proposal may be submitted to Susan M. Kelley, General Counsel, 
Texas Workers' Compensation Commission, 4000 South IH-35, Austin, Texas 78704. 
Comments will be accepted for 30 days after publication of this proposal in the 
Texas Register.
The new section is proposed under Texas Civil Statutes, Article 8308-2.09(a), 
which authorize the commission to adopt rules necessary to administer the Texas 
Workers' Compensation Act.
sec.130.8. Initiating Payment of Impairment Income Benefits.
(a) Impairment income benefits accrue on the day after the injured employee 
reaches maximum medical improvement, regardless of whether the employee has 
suffered seven or more days of disability.
(b) When the date of maximum medical improvement is not disputed, the carrier 
shall initiate payment of impairment income benefits on or before the fifth day 
after:
(1) the date of receipt of the employee's treating doctor's medical evaluation 
report, as described in sec.130.1 of this title (relating to Reports of Medical 
Evaluation: Maximum Medical Improvement and Permanent Impairment); or
(2) the last day of the 104th week after the employee's accrual date, as defined 
in sec.124.7 of this title (relating to Initial Payment of Temporary Income 
Benefits).
(c) When the date of maximum medical improvement is disputed, the carrier shall 
initiate payment of impairment income benefits on or before the fifth day after:
(1) the date of entry of an interlocutory order to begin payment of impairment 
income benefits;
(2) the date of execution of an agreement on a dispute over date of maximum 
medical improvement; or
(3) the date of receipt of a commission-approved settlement of a dispute over 
date of maximum medical improvement.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113439
Susan M. Kelley
General Counsel
Texas Workers' Compensation Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 440-3972
       
28 TAC sec.130.10
The Texas Workers' Compensation Commission proposes new  s130.10, concerning 
periodic review by the agency of the employment status of injured workers with 
impairment ratings of 15% or greater during their impairment income benefits 
period. For workers with impairment income benefits periods longer than one 
year, the review will be conducted annually, to determine whether post-injury 
wage loss is the direct result of the injury. All cases will be reviewed no 
later than 10 days before the end of the period to additionally determine the 
worker's eligibility for supplemental income benefits. The new section also 
specifies the items to be reviewed, including periodic reports from the worker 
and the carrier, medical examinations, vocational assessments, and other 
necessary tests and diagnoses.
Andrew Thigpen, associate director, Financial Management, has determined that 
for each year of the first five-year period the new section is in effect, there 
will be fiscal implications for the State and local governments as a result of 
enforcing or administering the new section. The commission will incur salary 
costs for personnel conducting the employment status reviews, based on an 
estimated review time of four hours, and a salary rate of $13.20 per hour, as 
follows: Year 1: $625,680; Year 2: $1,069,200; Year 3: $1,201,200; Year 4: $1, 
238,160; Year 5: $1,254,000.
The state and local governments, in their capacity as self-insured employers, 
will incur salary costs and costs for any medical examinations, vocational 
assessments, and other necessary tests and diagnoses ordered by the commission 
as part of each employment status review. These costs are estimated to be $650 
per review.
There is no anticipated impact on employment, locally or statewide, as a result 
of implementing the new section.
Mr. Thigpen has determined that, for each of the first five years the new 
section is in effect, the public benefit anticipated as result of enforcing the 
new section will be identification of workers whose injuries have caused direct 
dimunition of their wage earning ability, permitting the commission to determine 
eligibility for supplemental income benefits and refer the worker to the Texas 
Rehabilitation Commission for vocational rehabilitation services. A second 
public benefit is collection of data on this issue, permitting future study and 
possible remedial action. The only anticipated cost of compliance for small 
businesses is for small workers' compensation insurance carriers, which will 
incur the cost of any medical examinations, vocational assessments, and other 
necessary tests and diagnoses ordered by the commission as part of each 
employment status review. This cost is estimated to be $650 per review. The cost 
for small carriers is proportionate to that for large carriers, based on market 
share. The only anticipated cost to persons required to comply with the new 
section is the minimal cost of postage for injured workers to return the 
required form to the commission or the carrier.
Comments on the proposal may be submitted to Susan M. Kelley, General Counsel, 
Texas Workers' Compensation Commission, 4000 South IH-35, Austin, Texas 78704. 
Comments will be accepted for 30 days after publication of this proposal in the 
Texas Register.
The new section is proposed under Texas Civil Statutes, Article 8308-2.09(a), 
which authorizes the commission to adopt rules as necessary to administer the 
Texas Workers' Compensation Act.
sec.130.10. Commission Review of Employment Status During the Impairment Income 
Benefits Period.
(a) The commission shall review the employment status of each injured employee 
who received an impairment rating of 15% or greater, and who has not commuted 
any impairment income benefits, to determine:
(1) whether the employee is unemployed, or underemployed as defined in 
sec.130.101 of this title (relating to Definitions); and, if so;
(2) whether the unemployment or underemployment is a direct result of the 
impairment from the compensable injury.
(b) The commission shall conduct this review:
(1) at least annually during the impairment income benefits period; and
(2) no later than the 10th day before the last day of the impairment income 
benefits period.
(c) To conduct its review, the commission may require:
(1) periodic reports from the employee, including the Statement of Employment 
Status described in sec.130.101 of this title (relating to Definitions);
(2) periodic reports from the carrier;
(3) physical or other examinations;
(4) vocational assessments; and
(5) other necessary tests and diagnoses.
(d) To conduct the review under subsection (b)(2) of this section, the 
commission shall send the employee a copy of the Statement of Employment Status 
with filing instructions and a description of the consequences of late filing 
and failing to file. The commission shall use the results of this review to make 
the initial determination of entitlement to supplemental income benefits, as 
provided by sec.130.103 of this title (relating to Initial Entitlement to 
Supplemental Income Benefits).
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113443
Susan M. Kelley
General Counsel
Texas Workers' Compensation Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 440-3972
       
Subchapter B. Supplemental Income Benefits
28 TAC sec.sec.130.101-130.110
The Texas Workers' Compensation Commission proposes new  ssec.130.101-130.110, 
constituting Subchapter B of Chapter 130, concerning supplemental income 
benefits.
New sec.130.101 defines terms relating to supplemental income benefits.
New sec.130.102 establishes that the commission will make the initial 
determination of entitlement to supplemental income benefits, and calculation of 
amount, and the carrier will make subsequent determinations and calculations; 
provides that determinations and calculations are made prospectively and 
quarterly; explains that either party may contest a determination or 
calculation; and sets out a calculation formula.
New sec.130.103 sets out the criteria for initial entitlement to supplemental 
income benefits; and describes the commission's actions at the end of a 
potentially eligible worker's impairment income benefits period, including 
review of employment status to determine initial entitlement to supplemental 
income benefits, delivery of notice of determination to the parties, and 
possible referral to the Texas Rehabilitation Commission.
New sec.130.104 sets out the criteria for continuing entitlement to supplemental 
income benefits; requires the injured worker to report employment status every 
quarter to continue to receive supplemental income benefits; requires the 
carrier to send a statement for reporting employment status to each worker 
receiving supplemental income benefits every 90 days, to review the statement to 
determine continuing entitlement, and to send written notice of its 
determination to the worker and the commission. The section also establishes 
accrual dates for continuing supplemental income benefits.
New sec.130.105 sets out the criteria for reinstated or delayed entitlement to 
supplemental income benefits; requires the injured worker to request the carrier 
to determine entitlement; and requires the carrier to review the request and 
send written notice of its determination to the worker and the commission. The 
section also establishes an accrual date for reinstated or delayed supplemental 
income benefits.
New sec.130.106 establishes that entitlement to supplemental income benefits is 
permanently lost under two conditions: when 401 weeks have elapsed since the 
date of injury; and, with certain exceptions, when an injured worker has not 
been entitled to supplemental income benefits for a period of 12 consecutive 
months.
New sec.130.107 sets out schedules for the carrier's payments of supplemental 
income benefits.
New sec.130.108 permits either party to request a benefit review conference to 
contest an entitlement determination or calculation of supplemental income 
benefits; provides that the carrier waives the right to contest if not raised 
timely; provides that a carrier who unsuccessfully contests supplemental income 
benefits is liable for the worker's attorney's fees.
New sec.130.109 provides for reinstatement of entitlement to supplemental income 
benefits after loss of entitlement for 12 consecutive months if a discharged 
worker can prove that the employer acted with intent to deprive of such 
benefits. The section additionally establishes an accrual date for benefits 
reinstated under these circumstances.
New sec.130.110 describes the commission review of the worker's employment 
status during the supplemental income benefits period to determine whether the 
worker's post-injury wage loss is the direct result of the injury. The review 
will be conducted annually on the commission's own motion, and at the request of 
either party, which may be made once a year. The section specifies the items to 
be reviewed, including periodic reports from the worker and the carrier, medical 
examinations, vocational assessments, and other necessary tests and diagnoses; 
and requires the commission to notify each party in writing of the results of 
the review.
Andrew Thigpen, associate director, Financial Management, has determined that 
for each year of the first five-year period the new sections are in effect, 
there will be fiscal implications for the State and local governments as a 
result of enforcing or administering the new sections. The commission will incur 
minimal costs for first-class postage under sec.130.103. The commission will 
incur salary costs for personnel conducting the employment status reviews 
required under sec.130.102 and  s130.110, based on an estimated review time of 
four hours, and a salary rate of $13.20 per hour, as follows: Year 1: None; Year 
2: $27,350; Year 3: $74,078; Year 4: $88,334; Year 5: $91,502.
The state and local governments, in their capacity as self-insured employers, 
will incur salary costs for personnel who review claims to determine entitlement 
to supplemental income benefits, based on an estimated review time of four 
hours, and the minimal cost of first-class postage under sec.130.104 and 
sec.130.105; the minimal cost of reproducing the Statement of Employment Status 
under sec.130. 104; and the cost of any medical examinations, vocational 
assessments, and other necessary tests and diagnoses ordered by the commission 
under sec.130.110 as part of each employment status review. These costs are 
estimated $650 per review.
There is no anticipated impact on employment, locally or statewide, as a result 
of implementing the new sections.
Mr. Thigpen has determined that for each of the first five years the new 
sections are in effect the public benefit anticipated as result of enforcing the 
new sections will be implementation of the new Texas Workers' Compensation Act; 
identification of workers whose injuries have caused direct dimunition of their 
wage earning ability, enabling the commission to determine eligibility for 
supplemental income benefits and to refer the worker to the Texas Rehabilitation 
Commission for vocational rehabilitation services; and collection of data on 
this issue, permitting future study and possible remedial action. The only 
anticipated cost of compliance for small businesses is for small workers' 
compensation insurance carriers, who will incur salary costs for personnel who 
review claims to determine entitlement to supplemental income benefits, based on 
an estimated review time of four hours, and the minimal cost of first-class 
postage under sec.130.104 and sec.130.105; the minimal cost of reproducing the 
Statement of Employment Status under sec.130.104; and the cost of any medical 
examinations, vocational assessments, and other necessary tests and diagnoses 
ordered by the commission under sec.130.110 as part of each employment status 
review. These costs are estimated to be $650 per review. The cost of compliance 
for small carriers is proportionate to the cost of compliance for large carriers 
relative to the market share. The only anticipated cost for persons required to 
comply with the new sections is the minimal cost of first class postage for 
injured workers seeking continuing supplemental income benefits under 
sec.130.104.
Comments on the proposal may be submitted to Susan M. Kelley, General Counsel, 
Texas Workers' Compensation Commission, 4000 South IH-35, Austin, Texas 78704. 
Comments will be accepted for 30 days after publication of this proposal in the 
Texas Register.
The new sections are proposed under Texas Civil Statutes, Article 8308-2.09(a) , 
which authorizes the commission to adopt rules as necessary to administer the 
the Texas Workers' Compensation Act.
sec.130.101. Definitions.  The following words and terms as used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise.
(1) Compensable quarter-A period of 13 weeks of entitlement to supplemental 
income benefits.
(2) Filing period-A period of at least 90 days during which the employee's 
actual and offered wages, if any, are reviewed to determine entitlement to, and 
amount of, supplemental income benefits.
(3) Impairment income benefits period-The number of weeks computed under the 
Act. sec.4.26(c)(1), for which the injured employee is entitled to receive 
impairment income benefits, starting with the date the employee reached maximum 
medical improvement.
(4) Offered wages-The wages of a bona fide position of employment, as defined in 
sec.129.5 of this title (relating to Bona Fide Offers of Employment).
(5) Statement of Employment Status-A commission-prescribed form filed with the 
carrier containing the following information:
(A) a statement, with supporting documentation, that the employee has earned 
less than 80% of the employee's average weekly wage as a direct result of the 
impairment from the compensable injury;
(B) the amount of the employee's earned and offered wages during the filing 
period; and
(C) a statement, with supporting documentation, that the employee has in good 
faith sought employment commensurate with the employee's ability to work.
(6) Supplemental income benefits period-Those weeks for which the injured 
employee is entitled, or may become entitled, to supplemental income benefits.
(7) Underemployment-Occurs when the injured employee has returned to work and is 
earning less than 80% of the employee's average weekly wage as a direct result 
of the impairment from the compensable injury.
sec.130.102. Determination of Entitlement to Supplemental Income Benefits; 
Calculation of Amount.
(a) Determination of entitlement and calculation of amount.
(1) The commission will make the initial determination and calculation, as 
provided by sec.130.103 of this title (relating to Initial Entitlement to 
Supplemental Income Benefits).
(2) The carrier will make subsequent determinations and calculations, as 
provided by sec.130.104 and sec.130.105 of this title (relating to Continuing 
Entitlement to Supplemental Income Benefits and Reinstated or Delayed 
Entitlement to Supplemental Income Benefits).
(b) Entitlement. Entitlement to supplemental income benefits is determined 
prospectively for each potentially compensable quarter, based on criteria met by 
the injured employee during the prior filing period. Once determined, 
entitlement continues for the duration of the compensable quarter.
(c) Amount. After entitlement is determined, the amount of the supplemental 
income benefits payment is calculated, based on the employee's actual wages, and 
offered wages as defined in sec.130.101 of this title (relating to Definitions), 
during the prior filing period. Since the Act requires supplemental income 
benefits to be paid monthly, the amount is calculated as a monthly payment. Once 
calculated, the monthly payment remains constant for each month of the 
compensable quarter.
(d) Calculation. The monthly supplemental income benefit payment is calculated 
as follows:
(1) add the claimant's actual and offered wages for each week of the filing 
period;
(2) divide the total by the number of weeks in the filing period;
(3) subtract the quotient from .80 of the claimant's average weekly wage;
(4) multiply the remainder by .80, not to exceed the maximum weekly income 
benefit under Texas Civil Statutes, Article 8308-4.11; and
(5)  multiply the product by 4.34821.
(e) Contesting a determination or calculation. Either party may contest a 
determination of entitlement or calculation of amount, as provided by 
sec.130.108 of this title (relating to Contesting Entitlement or Amount of 
Supplemental Income Benefits; Attorney Fees).
sec.130.103. Initial Entitlement to Supplemental Income Benefits.
(a) Initial entitlement criteria. An injured employee who received an impairment 
rating of 15% or greater, and who has not commuted any impairment income 
benefits, is entitled to receive supplemental income benefits upon termination 
of impairment income benefits if the employee:
(1) has been unemployed, or underemployed as defined in sec.130.101 of this 
title, as a direct result of the impairment from the compensable injury; and
(2) has made good faith efforts to obtain employment commensurate with the 
employee's ability to work.
(b) Review of employment status. As provided by sec.130.10 of this title 
(relating to Review of Employment Status During the Impairment Income Benefits 
Period), not later than 10 days before the last day of the impairment income 
benefit period, the commission shall review the employment status of each 
injured employee who received an impairment rating of 15% or greater, and who 
has not commuted any impairment income benefits.
(c) Notice of determination. Not later than the last day of the impairment 
income benefit period, the commission shall:
(1) determine entitlement or non-entitlement to supplemental income benefits; 
and
(2) send written notice of this determination to the injured employee and the 
carrier by first class mail or personal delivery.
(d) Determination of entitlement. If the commission determines that the employee 
is entitled to supplemental income benefits, the notice shall:
(1) state the beginning and end dates of the first compensable quarter;
(2) specify the amount of the monthly payment;
(3) specify the wages used to calculate the monthly payment;
(4) advise the parties of the procedures for contesting the commission's 
determination and calculation of amount, as provided sec.130.108 of this title 
(relating to Contesting Entitlement or Amount of Supplemental Income Benefits); 
and
(5) enclose instructions for filing the Statement of Employment Status, a filing 
schedule, and a description of the consequences of late filing and failing to 
file.
(e) Referral to the Texas Rehabilitation Commission. If the commission 
determines that the employee may be materially assisted by vocational 
rehabilitation or training, the notice described in subsection (d) of this 
section shall additionally contain:
(1) a referral to the Texas Rehabilitation Commission for appropriate services; 
and
(2) a warning to the employee that refusing such services, or refusing to 
cooperate with such services, will result in loss of entitlement to supplemental 
income benefits.
(f) Determination of non-entitlement. If the commission determines that the 
employee is not entitled to supplemental income benefits, the notice shall:
(1) state the grounds for this determination;
(2) advise the parties of the procedures for contesting the commission's 
determination, as provided by sec.130.108 of this title (relating to Contesting 
Entitlement or Amount of Supplemental Income Benefits); and
(3) enclose a Statement of Employment Status and filing instructions for 
claiming delayed entitlement to supplemental income benefits, as provided by 
sec.130.105 of this title (relating to Reinstated or Delayed Entitlement to 
Supplemental Income Benefits).
sec.130.104. Continuing Entitlement to Supplemental Income Benefits.
(a) Continuing entitlement criteria. An injured employee initially determined by 
the commission to be entitled to supplemental income benefits will continue to 
be entitled to supplemental income benefits for subsequent compensable quarters 
if the employee, during each filing period:
(1)  has been unemployed, or underemployed as defined in sec.130.101 of this 
title (relating to Definitions), as a direct result of the impairment from the 
compensable injury; and
(2) has made good faith efforts to obtain employment commensurate with the 
employee's ability to work.
(b)  Statement of Employment Status. Unless this requirement has been expressly 
waived by the commission, an employee claiming continuing entitlement to 
supplemental income benefits must send the carrier a Statement of Employment 
Status. The carrier shall enclose a copy of the statement with the supplemental 
income benefit payment for the third month of the compensable quarter, 
accompanied by filing instructions and a description of the consequences of late 
filing and failing to file.
(c) Filing the statement. The employee shall file the statement with the carrier 
by first class mail or personal delivery. To ensure no lapse in benefits, the 
statement should be filed no later than the 15th day after receipt of the 
statement.
(d) Procedure for determining continuing entitlement and amount. Not later than 
10 days after receiving the statement, the carrier shall determine continuing 
entitlement to supplemental income benefits, and send written notice of 
determination to the injured employee and the commission.
(e) Determination of continuing entitlement and amount. If the carrier 
determines that the employee continues to be entitled to supplemental income 
benefits at an amount the same or greater than that paid during the prior 
compensable quarter, the notice shall:
(1)  state the beginning and end dates of the next compensable quarter;
(2)  specify the amount of the monthly payment; and
(3) specify the wages used to calculate the monthly payment.
(f) Determination of non-entitlement or reduced amount. If the carrier 
determines that the employee has lost entitlement to supplemental income 
benefits, or continues to be entitled at an amount less than that paid during 
the prior compensable quarter the notice shall:
(1) state the grounds for this determination; and
(2) request the commission to set a benefit review conference, as provided by 
sec.130.108 of this title (relating to Contesting Entitlement or Amount of 
Supplemental Income Benefits).
(g)  Accrual date. If the employee is entitled to supplemental income benefits 
under this section, the benefits begin to accrue on the later of:
(1)  the last day of the prior compensable quarter; or
(2) the day the employee files the statement with the carrier.
sec.130.105. Reinstated or Delayed Entitlement to Supplemental Income Benefits.
(a) Reinstated entitlement criteria. Except as provided by sec.130.106 of this 
title (relating to Permanent Loss of Entitlement to Supplemental Income 
Benefits), an injured employee initially determined by the commission to be 
entitled to supplemental income benefits, but who thereafter loses entitlement, 
will regain entitlement if the employee, for one filing period:
(1) is unemployed, or underemployed as defined in  s130.101 of this title 
(relating to Definitions), as a direct result of the impairment from the 
compensable injury; and
(2) has made good faith efforts to obtain employment commensurate with the 
employee's ability to work.
(b)  Delayed entitlement criteria. Except as provided by sec.130.106 of this 
title (relating to Permanent Loss of Entitlement to Supplemental Income 
Benefits), an injured employee initially determined by the commission not to be 
entitled to supplemental income benefits will become entitled if the employee, 
for one filing period:
(1) is unemployed, or underemployed as defined in  s130. 101 of this title 
(relating to Definitions), as a direct result of the impairment from the 
compensable injury; and
(2) has made good faith efforts to obtain employment commensurate with the 
employee's ability to work.
(c) Statement of Employment Status. An injured employee seeking reinstated or 
delayed entitlement to supplemental income benefits must send the carrier a 
Statement of Employment Status by first class mail or personal delivery.
(d) Procedure for determining reinstated or delayed entitlement and amount. Not 
later than 10 days after receiving the statement, the carrier shall determine 
reinstated or delayed entitlement to supplemental income benefits, and send 
written notice of determination to the injured employee and the commission.
(e) Determination of entitlement and amount. If the carrier determines that the 
employee is entitled to reinstated or delayed supplemental income benefits, the 
notice shall:
(1) state the beginning and end dates of the compensable quarter;
(2) specify the amount of the monthly payment;
(3) specify the wages used to calculate the monthly payment;
(4)  advise the employee of the procedures for contesting the carrier's 
calculation of amount, as provided by sec.130.108 of this title (relating to 
Contesting Entitlement or Amount of Supplemental Income Benefits); and
(5)  enclose instructions for filing the Statement of Employment Status, a 
filing schedule, and a description of the consequences of late filing and 
failing to file.
(f) Determination of non-entitlement. If the carrier determines that the 
employee is not entitled to reinstated or delayed supplemental income benefits, 
the notice shall:
(1) state the grounds for this determination;
(2) advise the employee of the procedures for contesting the carrier's 
determination, as provided by sec.130.108 of this title (relating to Contesting 
Entitlement or Amount of Supplemental Income Benefits); and
(3) enclose a Statement of Employment Status and filing instructions for 
claiming reinstated or delayed entitlement to supplemental income benefits, as 
provided by sec.130. 105 of this title (relating to Reinstated or Delayed 
Entitlement to Supplemental Income Benefits).
(g) Accrual date. If the employee is entitled to supplemental income benefits 
under this section, the benefits begin to accrue on the date the statement is 
postmarked to the carrier.
sec.130.106. Permanent Loss of Entitlement to Supplemental Income Benefits.
(a) Except as provided in sec.130.109 of this title (relating to Reinstatement 
of Entitlement if Discharged with Intent to Deprive of Supplemental Income 
Benefits), an injured employee who is not entitled to supplemental income 
benefits for a period of 12 consecutive months permanently loses entitlement to 
such benefits.
(b) All injured employees permanently lose entitlement to supplemental income 
benefits at the end of the 401st week after the date of injury.
sec.130.107. Payment of Supplemental Income Benefits.
(a)  Initial determination of entitlement. After the commission's initial 
determination of entitlement, the carrier shall pay supplemental income benefits 
as follows:
(1) the first payment shall be made on or before the seventh day after the last 
day of the impairment income benefits period;
(2) the second payment shall be made on the 37th day of the first compensable 
quarter; and
(3) the last payment shall be made on the 67th day of the first compensable 
quarter.
(b) Continuing, reinstated, or delayed entitlement. If the employee's 
entitlement is continuing, reinstated, or delayed, the carrier shall pay 
supplemental income benefits as follows:
(1)  the first payment shall be made on or before the seventh day of the 
compensable quarter;
(2) the second payment shall be made on the 37th day of the compensable quarter; 
and
(3) the last payment shall be made on the 67th day of the compensable quarter.
sec.130.108. Contesting Entitlement or Amount of Supplemental Income Benefits; 
Attorney Fees.
(a) The claimant or the carrier may request a benefit review conference to 
contest a determination of entitlement to or amount of supplemental income 
benefits. The request must be made as provided by sec.141. 1 of this title 
(relating to Requesting and Setting a Benefit Review Conference).
(b) A carrier waives the right to contest the commission's initial determination 
of entitlement or amount for the first compensable quarter if the carrier fails 
to request a benefit review conference within 10 days after the expiration of 
the impairment income benefit period.
(c) A carrier waives the right to contest continuing entitlement to or amount of 
supplemental income benefits for that compensable quarter if the carrier fails 
to request a benefit review conference within 10 days after receipt of the 
employee's Statement of Employment Status.
(d) A carrier who unsuccessfully contests a commission determination of 
entitlement or amount is liable for:
(1) all accrued, unpaid supplemental income benefits, and interest on that 
amount; and
(2) reasonable and necessary attorney's fees incurred by the employee as a 
result of the carrier's dispute.
sec.130.109. Reinstatement of Entitlement if Discharged with Intent to Deprive 
of Supplement Income Benefits.
(a) An employee who has lost entitlement to supplemental income benefits under 
sec.130.106(a) of this title (relating to Permanent Loss of Entitlement to 
Supplemental Income Benefits), and is discharged from employment within 12 
months of losing entitlement, will become re-entitled if the employer discharged 
the employee with intent to deprive the employee of supplemental income 
benefits.
(b) An employee seeking reinstated supplemental income benefits under this 
section shall request a benefit contested case hearing, as provided by sec.142.5 
of this title (relating to Sequence of Proceedings to Resolve Benefit Disputes).
(c)  The employee bears the burden of proof of discharge with intent to deprive.
(d) Supplemental income benefits reinstated under this section begin to accrue 
on the day after the employee's discharge.
sec.130.110. Commission Review of Employment Status During the Supplemental 
Income Benefit Period.
(a) The commission will review the employment status of each employee receiving 
supplemental income benefits to determine whether the unemployment, or 
underemployment as defined by  s130.101 of this title (relating to Definitions) 
is a direct result of the impairment from the compensable injury:
(1) at least annually during the supplemental income benefits period; and
(2) upon request of either party, as provided by subsection (b) of this section.
(b) Not more than once in each 12 calendar months, the employee or the carrier 
may request the commission to review the employee's employment status to make 
the determination described in subsection (a) of this section.
(c) To conduct its review, the commission may require:
(1) periodic reports from the employee and the carrier;
(2) physical or other examinations;
(3)  vocational assessments; and
(4) other necessary tests and diagnoses.
(d) After each review, the commission will send written notice of its 
determination to the employee and the carrier.
(e) If the commission determines that the unemployment or underemployment is a 
direct result of the impairment from the compensable injury, and the commission 
additionally determines that the employee may be materially assisted by 
vocational rehabilitation or training, the notice described in subsection (d) of 
this section shall additionally contain:
(1) a referral to the Texas Rehabilitation Commission for appropriate services; 
and
(2) a warning to the employee that refusing such services, or refusing to 
cooperate with such services will result in loss of entitlement to supplemental 
income benefits.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113444
Susan M. Kelley
General Counsel
Texas Workers' Compensation Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 440-3972
       
Chapter 142. Dispute Resolution-Benefit Contested Case Hearing
28 TAC sec.142.13
The Texas Workers' Compensation Commission proposes an amendment to sec.142. 13, 
concerning discovery prior to a benefit contested case hearing. The amendment 
adds a new subsection (g), providing that the notice setting an expedited 
hearing, or a hearing held without a prior benefit review conference, shall 
include time limits for conducting pre-hearing discovery.
Andrew Thigpen, associate director, financial management, has determined that 
for the first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section.
There is no anticipated impact on employment, locally or statewide, as a result 
of implementing this amendment as proposed.
Mr. Thigpen also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be implementation of the new Texas Workers' Compensation Act. There 
will be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the section as proposed.
Comments on the proposal may be submitted to Susan M. Kelley, General Counsel, 
Texas Workers' Compensation Commission, 4000 South IH-35, Austin, Texas 78704. 
Comments will be accepted for 30 days after publication of this proposal in the 
Texas Register.
The amendment is proposed under Texas Civil Statutes, Article 8308-2.09(a), 
which authorize the commission to adopt rules necessary to administer the Texas 
Workers' Compensation Act.
sec.142.13. Discovery.
(a)-(f) (No change.)
<nl>(g) Time for discovery when the hearing is expedited or held without a prior 
benefit review conference. The notice setting an expedited hearing, or a hearing 
held without a prior benefit review conference shall include time limits for 
completion of discovery.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113442
Susan M. Kelley
General Counsel
Texas Workers' Compensation Commission
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 440-3972
       
TITLE 31. NATURAL RESOURCES AND CONSERVATION
Part II. Texas Parks and Wildlife Department
Chapter 63. Administration
Nonprofit Organizations
31 TAC sec.sec.63.21, 63.23, 63.25, 63.27
The Texas Parks and Wildlife Department Commission proposes new sec.sec.63.21, 
63.23, 63.25, and 63.27, concerning rules governing the relationship between the 
department and nonprofit organizations which assist it and concerning acceptance 
of donations by the department from any source.
The proposed new rules will bring the agency into compliance with Texas Civil 
Statutes, Article, 6252-11f, which require that state agencies adopt rules 
governing their relationships with nonprofit organizations which exists to 
further the purpose and duties of the agency and with other donors to the 
agency. The proposed rules will also address the concerns raised in Attorney 
General Opinion H-1309 concerning conflicts of interest when state employees 
also serve on nonprofit boards which assist the agency employing the board 
member.
During the process of drafting these rules approximately 200 organizations which 
have contributed to the department were identified. Simultaneously with 
submission of the Texas Register, these organizations were sent copies of the 
proposed rules with a cover letter requesting that they self-identify whether or 
not they are "closely related" as defined in these proposed rules and that they 
submit a copy of their articles of incorporation and bylaws to the department 
for purposes of review. The information developed in this process will be used 
to add additional organizations to the list of "closely related" organizations 
when the rules are adopted, eliminating the need for a second rule making 
process.
Paul M. Shinkawa, director of legal services, has determined that for the first 
five-year period the sections are in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
sections.
Mr. Shinkawa, also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be compliance with Article 6252-11f and increased financial 
support of public services by private donors. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the sections as proposed.
The department has not filed a local employment impact statement with the Texas 
Employment Commission in compliance with the Administrative Procedure and Texas 
Register Act, as the agency has determined that the rules as proposed will not 
impact local employment.
Comments on the proposals may be submitted to Paul M. Shinkawa, Director of 
Legal Services, Texas Parks and Wildlife Department, 4200 Smith School Road, 
Austin, Texas 78744, (512) 389-4419.
The new sections are proposed under the Texas Parks and Wildlife Code, 
sec.sec.11. 026, 13.03, 13.04, 13.008, and 13.051 and Texas Civil Statutes, 
Article 6253-11f and 6252-13a.
sec.63.21. Definitions.  The following words and terms, when used in this 
subchapter, shall have the following meanings, unless the context clearly 
indicates otherwise.
 Closely related nonprofit organization-A legally incorporated or otherwise 
associated nonprofit organization whose sole purpose is to benefit the 
department, its component facilities, or research and other activities within 
those component facilities, which is administered by a board of directors 
independent from the control and supervision of the commission.
 Commission-The Texas Parks and Wildlife Commission.
 Department-Texas Parks and Wildlife Department and all of its component 
facilities.
 Donor-A person as defined in Government Code, sec.311.005(2) other than a 
closely related organization, which from time to time may make contributions to 
the department, but whose primary purpose is other than the sole benefit of the 
department, its component facilities, or research and other activities within 
those component facilities.
 Executive director -Executive director of the department.
 Improvement-A permanent addition to department held real property which is in 
the nature of a fixture, that is a chattel or other construction which is 
attached to the real estate and which becomes part of it upon attachment.
sec.63.23. Closely Related Nonprofit Organizations.
(a) The department will maintain a list of closely related nonprofit 
organizations and periodically update said list.
(b) The following organizations have been identified as closely related:
(1) Parks and Wildlife Foundation of Texas, Inc;
(2) Operation Share a Lone Star Lunker, Inc.
(c) Funds accepted by closely related nonprofit organizations on behalf of the 
department are to be managed as a reasonably prudent person would manage funds 
if acting on their own behalf and such funds are to be accounted for according 
to generally accepted accounting principles.
(d) All closely related nonprofit organizations must enter into a memorandum of 
agreement with the department which details their responsibilities and duties no 
later than six months after the effective date of these regulations.
sec.63.25. Conflict of Interest, Performance of Services, and Use of Department 
Facilities.
(a) Unless specifically authorized by law, no officer or employee of the 
department shall accept remunerations from or serve as an officer, director, 
employee, or agent of a closely related nonprofit organization or donor. This 
provision does not prevent officers or employees of the department from serving 
as officers or directors of closely related nonprofit organizations when a 
condition of membership in the organization is current employment or status as 
an official of the department. This provision does not prohibit the 
administration by the department of a bona fide employee awards program.
(b) No officer or employee of the department shall act as the agent for any 
closely related nonprofit organization or donor in the negotiation of the terms 
or conditions of any agreement relating to the provision of funds, services, or 
property to the department by such closely related nonprofit organization or 
donor.
(c) The utilization of equipment, facilities, or services of employees and 
officers of the department by a closely related nonprofit organization or donor 
shall be permitted only in accordance with a negotiated agreement that provides 
for the payment of adequate compensation for such equipment, facilities, or 
services.
sec.63.27. Gifts to the Department.
(a) The department may not accept or receive gifts or bequests from any source 
until such gifts or bequests have been approved for acceptance by the executive 
director or his delegee. Acceptance of gifts is hereby delegated as follows.
(1) Monetary gifts or improvements valued at $1,000 or less and intended to aid 
a specific division or facility of the department may be approved for acceptance 
by the park superintendent or superintendent of the facility affected by the 
gift.
(2)  Monetary gifts or improvements valued at greater than $1,000 and less than 
or equal to $5,000 may be approved for acceptance by the division director 
responsible for the facility affected by the gift or use of the gift.
(3)  Monetary gifts or improvements valued at greater than $5,000 and all gifts 
of real property or interests in real property must be approved for acceptance 
by the executive director.
(b) The department may not accept a proposed improvement unless it is consistent 
with the park or facility master plan or public use program.
(c) Neither a donor nor a closely related nonprofit organization may accept real 
property on behalf of the department unless previously approved by the executive 
director.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 29, 1991.
TRD-9113390
Paul M. Shinkawa
Director, Legal Services
Texas Parks and Wildlife Department
Earliest possible date of adoption: December 6, 1991
For further information, please call: 1-800-792-1112, ext. 4863 or (512) 389-
4863
       
Part III. Texas Air Control Board
Chapter 114. Control of Air Pollution From Motor Vehicles
31 TAC sec.114.11
The Texas Air Control Board (TACB) proposes an amendment to sec.114.11, 
concerning alternative fuel requirements for transit authorities, in response to 
petitions for rulemaking from Hoechst Celanese Corporation; Sterling Chemicals, 
Inc.; Ford Motor Company; Tenneco Methanol; and MG Petrochemicals Corporation to 
add methanol to the list of acceptable alternative fuels for use by transit 
authorities to satisfy applicable fleet conversion requirements. The TACB staff 
has reviewed the petition and other available information and determined that 
sufficient evidence exists to warrant further consideration of the petition. 
However, the TACB is assuming a neutral position on this issue and is soliciting 
information in support of and/or against the petition.
Senate Bill (S.B.) 769, 71st Legislature, requires that transit authorities 
located in nonattainment areas in Texas convert a certain percentage of their 
vehicles to be capable of using compressed natural gas or "other comparable 
alternative fuel" in accordance with established schedules. In addition, all new 
vehicles purchased after September 1, 1991 must also be similarly equipped. 
Section 114.11, as adopted by the TACB on March 8, 1991, identified natural gas, 
liquified petroleum gas, and electricity as the only alternative fuels 
satisfying the legislative intent.
Petitioners presented the following arguments for the consideration of methanol 
as an acceptable alternative fuel: methanol significantly lowers emissions from 
both gasoline and diesel engines and "can meet the statutory requirements of 
Texas law;" the demand for methanol can be largely satisfied by Texas-based 
production facilities utilizing natural gas resources; the technology and 
infrastructure for utilizing methanol as an alternative fuel, especially in 
heavy-duty engines, is more developed and less costly than other alternatives.
The proposed change to sec.114.11 would add methanol or methanol/gasoline blends 
of 85 (M85) or greater to the list in subsection (a) which defines acceptable 
alternative fuels. Adoption of this change will be dependent on the receipt of 
appropriate documentation which: quantifies the comparison of the emissions from 
vehicles using these fuels with the emissions from vehicles using natural gas; 
and characterizes the air quality benefits of using methanol as a motor vehicle 
fuel.
Bennie Engelke, deputy director of administrative services, has determined that 
for the first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section. Since the flexibility to use any listed alternative 
fuel remains available, the economic costs to businesses required to implement 
the measure would be unchanged or reduced by the proposal.
Lane Hartsock, deputy director of air quality planning, has determined that for 
each year of the first five years the section is in effect the public benefit 
anticipated as a result of enforcing implementing the section will be improved 
air quality and a broader choice in the selection of alternative fuel 
technologies.
A public hearing on this proposal will be held on December 5, 1991 at 2 p.m. in 
the TACB Auditorium, 12124 Park 35 Circle, Austin.
Copies of the proposed section are available from Russell Baier at the central 
office of the TACB, 12124 Park 35 Circle, Austin, Texas 78753, and at all TACB 
regional offices.
Public comment, both oral and written, on the proposed change is invited at the 
hearing. The TACB would appreciate receiving five copies of testimony prior to 
or at the hearing. Written testimony received by the Mobile Source Division at 
the TACB central office by 4 p.m. on December 6, 1991 will be included in the 
hearing record.
The amendment is proposed under the Texas Clean Air Act (TCAA), sec.382.017, 
Texas Health and Safety Code, (Vernon 1990), which provides the TACB with the 
authority to adopt rules consistent with the policy and purposes of the TCAA.
sec.114.11. Alternative Fuel Requirements for Transit Authorities.
(a) Metropolitan rapid transit authorities created under Texas Civil Statutes, 
Article 1118x, regional transportation authorities created under Texas Civil 
Statutes, Article 1118y, and city transportation departments created under 
Revised Statutes, Article 1118z, shall ensure that fleet vehi- cles, including 
purchased vehicle services, are capable of being operated on alternative fuels 
which are defined as follows:
(1) (No change.)
(2) liquified petroleum gas; [or]
(3) electricity <nl>; or<ol>[.]
<nl>(4) methanol or methanol/gasoline blends of 85% (M85) or greater.
(b)-(h) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113432
Lane Hartsock
Deputy Director, Air Quality Planning
Texas Air Control Board
Proposed date of adoption: February 15, 1992
For further information, please call: (512) 908-1451
       
TITLE 40. SOCIAL SERVICES AND ASSISTANCE
Part I. Texas Department of Human Services
Chapter 49. Child Protective Services
Subchapter M. Substitute Care Placement Services
40 TAC sec.49.1313
The Texas Department of Human Services proposes new sec.49.1313, concerning 
substitute-care placement services, in its Child Protective Services chapter. 
The purpose of the new section is to establish policies for reviewing the 
concerns of foster parents when they disagree with placement decisions that 
affect children currently in their care.
Burton F. Raiford, interim commissioner, has determined that for the first five-
year period the proposed new section will be in effect there will be no fiscal 
implications for state or local governments as a result of enforcing or 
administering the section.
Mr. Raiford also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be better placement decisions for children in foster care. There 
will be no effect on small businesses as a result of enforcing or administering 
the section. There is no anticipated economic cost to persons who are required 
to comply with the proposed section.
Questions about the content of this proposal may be directed to Nancy C. Halton 
at (512) 450-3238 in the Protective Services for Families and Children 
Department. Comments on the proposal may be submitted to Nancy Murphy, Policy 
and Document Support-271, Texas Department of Human Services E-503, P.O. Box 
149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas 
Register.
The new section is proposed under the Human Resources Code, Title 2, Chapter 22, 
which authorizes the department to administer public assistance programs; 
Chapter 41, which authorizes the department to enforce laws for the protection 
of children; and Chapter 47, which authorizes the department to administer 
programs to promote the adoption of hard-to-place children. The new section is 
also proposed under the Texas Family Code, Title 2, Chapter 34, which authorizes 
the department to provide services to alleviate the effects of child abuse and 
neglect.
sec.49.1313. Administrative Review of Foster Parent Concerns About Placement 
Decisions.
(a) Keeping foster parents informed. When the Texas Department of Human Services 
(DHS) plans to remove a child from a foster home in order to make a different 
placement under the child's permanency plan, the child's worker must advise the 
current foster parents of the planned placement unless the child's safety is at 
risk.
(b) Resolving differences. If the child's current foster parents have concerns 
about the planned placement, DHS staff discuss the concerns with the foster 
parents and try to resolve them informally.
(c) Administrative review.
(1)  If the foster parents still disagree with DHS's plans for placing a child 
in their care after discussing their concerns with staff informally, the foster 
parents may request a formal administrative review. DHS must conduct an 
administrative review at the foster parents' request when the following 
conditions are satisfied:
(A) the foster parents have requested the review within 10 days of receiving 
DHS's notification about the decision to place the child;
(B) the placement decision has not been mandated by the court;
(C) the placement decision is not the result of an investigation of a report of 
child abuse or neglect in the foster home; and
(D) the foster parents' concerns address the plan for permanency included in the 
child's case plan.
(2) When DHS receives a request for an administrative review as speci- fied in 
paragraph (1) of this subsection, staff must conduct the review as expeditiously 
as possible. DHS's implementation of the child's placement plan, however, must 
not be delayed by the process of conducting the review.
(d) Regional procedures.
(1) Each region must establish written procedures for conducting administrative 
reviews of placement decisions in response to requests from foster parents.
(2)  Each region must give a copy of its review procedures to each DHS- 
certified foster home in its jurisdiction. At its own discretion, the region may 
also give a copy of its review procedures to any foster home that has been 
certified by an agency other than DHS, if the home is caring for a child in 
DHS's managing conservatorship.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas on October 29, 1991.
TRD-9113568
Nancy Murphy
Agency liaison, Policy and Document Support
Texas Department of Human Services
Proposed date of adoption: January 1, 1992
For further information, please call: (512) 450-3765
       
TITLE 43. TRANSPORTATION
Part I. Texas Department of Transportation
Chapter 1. Administration
Generic Job Postings
43 TAC sec.sec.1.200-1.203
(Editor's Note: The Texas Department of Transportation proposes for permanent 
adoption the new sections it adopts on an emergency basis in this issue. The 
text of the new sections is in the Emergency Rules section of this issue.)
The Texas Department of Transportation proposes new sec. s1.200-1.203, 
concerning generic job postings. The new sections authorize the department to 
provide an alternative procedure for notifying potential job applicants of 
management positions within the department. Rider 23 of the Texas Department of 
Transportation's appropriation for the 1992-1993 biennium requires that the 
department adopt temporary job posting rules for exempt positions and those in 
classification group 21. The new sections provide for the generic posting of 
positions, applications, lateral transfer of department employees whose 
positions may be eliminated as a result of implementing House Bill 9, 72nd 
Legislature, First Called Session, 1991, publication and evaluation.
Leslie A. Clark, Director of Human Resources, has determined that for the first 
five-year period the sections are in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
sections.
Mr. Clark has certified that there will be no significant impact on overall 
employment as a result of enforcing or administering the section.
Mr. Clark also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be the establishment of uniform procedures to fill job 
vacancies in classification group 21 and exempt positions. There will be no 
effect on small businesses as a result of enforcing the sections. There is no 
anticipated economic cost to persons who are required to comply with the 
sections as proposed.
Comments on the proposal may be submitted to Leslie A. Clark, Director of Human 
Resources, Texas Department of Transportation, 125 East 11th Street, Austin, 
Texas 78701-2483.
The new sections are proposed under Texas Civil Statutes, Article 6666, which 
provide the Texas Transportation Commission with the authority to establish 
rules and regulations for the conduct of the work of the Texas Department of 
Transportation.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on October 29, 1991.
TRD-9113365
Diane L. Northam
Legal Administrative Assistant
Texas Department of Transportation
Earliest possible date of adoption: December 6, 1991
For further information, please call: (512) 463-8630
       
Chapter 17. Division of Motor Vehicle Titles and Registration
Motor Vehicle Registration
43 TAC sec.17.51
(Editor's Note: The Texas Department of Transportation proposes for permanent 
adoption the new section it adopts on an emergency basis in this issue. The text 
of the new section is in the Emergency Rules section of this issue.)
The Texas Department of Transportation proposes an amendment to sec.17.51, 
concerning registration reciprocity agreements. The amended section provides for 
the most recent edition of the AAMVA International Registration Plan with 
Official Commentary published on March 1, 1991, to be adopted by reference. The 
amendment also includes the definition of certain regulatory terms, the 
department's procedure for issuance of apportioned license plates and 
corresponding cab cards for commercial vehicles, the appropriate display of 
apportioned vehicle registration, the audit of apportioned vehicle operational 
records, the department's assessment of additional registration fees which may 
be due the state, the notification of assessments and/or cancellation of the 
registrant's operating privileges for failure to comply, an informal conference 
procedure to seek resolution, and a formal administrative hearing appeal process 
consistent with principles of due process and the Administrative Procedure and 
Texas Register Act.
Dian K. Neill, director of motor vehicle titles and registration, has determined 
that for the first five-year period the section is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the section. Ms. Neill has certified that there will be no 
significant impact on local economies or overall employment as a result of 
enforcing or administering the proposed amended section.
Ms. Neill also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be a more effective and uniform enforcement of the registration law 
by promoting the lawful operation of commercial motor vehicles and ensuring 
appropriate disbursement of vehicle registration fees. There is no anticipated 
economic cost to persons who are required to comply with the proposed amended 
section.
Comments on the proposal may be submitted to Dian K. Neill, director of motor 
vehicle titles and registration, Texas Department of Transportation, 11th and 
Brazos Streets, Austin, Texas 78701.
The amendment is proposed under Texas Civil Statutes, Articles 6666 and 6675a-
16, which provide the Texas Transportation Commission with the authority to 
establish rules for the conduct of the work of the Texas Department of 
Transportation and for the orderly administration of statutory provisions 
relating to the international registration plan.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas on October 29, 1991.
TRD-9113416
Diane L. Northam
Legal Administrative Assistant
Texas Department of Transportation
Proposed date of adoption: December 6, 1991
For further information, please call: (512) 463-8630
       
 State Board of Insurance Exempt Filing 
Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L
(Editor's Note: As required by the Insurance Code, Article 5.96 and 5. 97, the 
Texas Register publishes notice of proposed actions by the Texas Board of 
Insurance. Notice of action proposed under Article 5.96 must be published in the 
Texas Register not later than the 30th day before the board adopts the proposal. 
Notice of action proposed under Article 5.97 must be published in the Texas 
Register not later than the 10th day before the Board of Insurance adopts the 
proposal. The Administrative Procedure and Texas Register Act, Article 6252-13a, 
Texas Civil Statutes, does not apply to board action under Articles 5. 96 and 
5.97.
The complete text of the proposal summarized here may be examined in the offices 
of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-
9104.)
The Texas Department of Insurance at a board meeting scheduled for 8:15 a.m. 
Friday, December 6, 1991, in Room 100 of the Texas Department of Insurance 
Building, 333 Guadalupe Street in Austin, will consider amendments to Rules IX 
and X of the Basic Manual of Rules, Classifications and Rates for Workers' 
Compensation and Employers' Liability Insurance<ol> and related endorsements and 
form pertaining to deductible programs. The proposed rule amends Rule IX by 
adding Section E to the Basic Workers' Compensation Manual by providing the 
three deductible plans that are required to be promulgated by the State Board of 
Insurance no later than January 1, 1992 as mandated by Senate Bill 1, 2nd 
Special Called Session of the 71st Legislature.
The three deductible programs as proposed are as follows: per accident 
deductible option with deductibles of $1,000, $2,500, $5,000, $10,000, and $25, 
000, not to exceed 50% of the policyholder's annual workers' compensation 
premium; an aggregate deductible option ranging from $2,000 to 100% of the 
policyholder's estimated annual workers' compensation premium, not to exceed 
$100,000; per accident/aggregate deductible option, which is a combination of 
Options 1 and 2.
Eligibility for deductible programs require that a policyholder have an 
estimated annual premium in excess of $5,000 if coverage is written in the 
voluntary market or in the competitive state fund. Policyholders with credit 
modifiers written through the Texas Workers' Compensation Insurance Facility are 
also eligible for a deductible program option policy.
Policyholders purchasing a deductible option with their workers' compensation 
policy will receive a premium credit. All claims incurred under the policy will 
be paid by the insurer and the policyholder shall then be liable for 
reimbursement up to the limit of the deductible amount chosen.
The insurer may require financial security in the form of a clean and 
irrevocable letter of credit if a policyholder selects one of the deductible 
options. Losses reported on unit statistical cards shall be reported as gross 
losses or all losses incurred, including those paid under the deductible.
Lastly, Rule IX E includes provisions for a negotiated deductible which allows 
an insurer and an insured to negotiate the terms of a deductible, provided the 
amount of the deductible exceeds the highest possible deductible amount in any 
deductible plan promulgated by the State Board of Insurance.
Rule X of the Basic Workers' Compensation Manual amends the cancellation rule 
providing that if a workers' compensation policy that is written with the 
aggregate deductible option is cancelled by the insurer or by the insured when 
retiring from business, then the aggregate deductible amount shall be reduced 
pro rata, based on the time the policy was in force. However, if the policy 
written with an aggregate deductible option is cancelled by the insured and the 
insured is not retiring from business, then the aggregate deductible amount 
shall not be reduced.
There are three proposed endorsements to be attached to a Workers' Compensation 
policy depending on the type of deductible option that is selected by the 
policyholder. In addition, there is also a Texas notice of election from being 
proposed that must be filed with the Workers' Compensation Division of the Texas 
Department of Insurance within 60 days after the policy effective date. The 
proposed rules, endorsements, and form are to be effective for policies written 
on and after 2:01 a.m., January 1, 1992.
Copies of the full text of the proposed amendments to Rules IX and X of the 
Basic Manual of Rules, Classifications and Rates for Workers' Compensation and 
Employers' Liability<ol> and the related endorsements and form pertaining to 
deductible programs are available for review in the Office of the Chief Clerk of 
the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-
9104.
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the rule as proposed has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas on October 30, 1991.
TRD-9113461
Angelia Johnson
Assistant Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328
       
The State Board of Insurance, at a board meeting scheduled for November 20, 
1991, at 8:30 a.m. in Room 100 of the Texas Department of Insurance Building, 
333 Guadalupe Street in Austin, will consider a revised increase of an approved 
limit endorsement and a new reduction of an approved limit endorsement, for use 
with the approved credit insurance program offered by Fidelity and Deposit 
Company of Maryland.
The increase of an approved limit endorsement is designed for use when an 
insured requests an increased buyer limit and the limit is approved by the 
company. The reduction of an approved limit endorsement has been revised to 
clarify the appropriate limit of coverage for deliveries made by the insured to 
their buyer before and after the buyer's limit has been reduced. There are no 
rate consequences associated with this filing.
Copies of the full text of the proposed endorsements are available for review in 
the Office of the Chief Clerk of the Texas Department of Insurance, 333 
Guadalupe Street, Austin, Texas 78714-9104.
This notification is made pursuant to the Insurance Code, Article 5.97, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the rule as proposed has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas on October 30, 1991.
TRD-9113436
Angelia Johnson
Assistant Chief Clerk
Texas Department of Insurance
For further information, please call:(512) 463-6328
       
The State Board of Insurance, at a board meeting scheduled for November 20, 
1991, at 8:30 a.m. in Room 100 of the Texas Department of Insurance Building, 
333 Guadalupe Street in Austin, will consider a revised work in progress 
endorsement developed for use with the approved credit insurance program offered 
by Fidelity and Deposit Company of Maryland.
The endorsement has been revised to clarify the issue of how coverage applies to 
reduction of the buyer's approved limit or cancellation of a buyer, for work in 
progress. The endorsement covers goods either manufactured or partially 
manufactured to the buyer's specifications, which cannot be readily resold for a 
reasonable price. A salvage provision has also been added. There are no rate 
consequences associated with this revision.
Copies of the full text of the proposed work in progress endorsement are 
available for review in the Office of the Chief Clerk of the Texas Department of 
Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104.
This notification is made pursuant to the Insurance Code, Article 5.97, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the rule as proposed has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas on October 30, 1991.
TRD-9113435
Angelia Johnson
Assistant Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328
       
The State Board of insurance, at a board meeting scheduled for November 20, 
1991, at 8:30 a.m. in Room 100 of the Texas Department of Insurance Building, 
333 Guadalupe Street in Austin, will consider a new special order goods 
endorsement for use with the approved credit insurance program offered by 
Fidelity and Deposit Company of Maryland. The new endorsement provides pre-
delivery coverage for wholesalers who purchase goods to individual 
specifications for their buyers. Generally such goods cannot readily be resold 
for a reasonable price.
The rate proposed for use with this endorsement is 10% of the base premium for 
the credit insurance policy.
Copies of the full text of the special order goods endorsement filing are 
available for review in the Office of the Chief Clerk of the Texas Department of 
Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104.
This notification is made pursuant to the Insurance Code, Article 5.97, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the rule as proposed has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas on October 30, 1991.
TRD-9113437
Angelia Johnson
Assistant Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328