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 10. COMMUNITY DEVELOPMENT Part V. Texas Department of Commerce Chapter 165. Allocation of Private Activity Bonds 10 TAC sec.sec.165.1-165.8 (Editor's note: The text of the following sections proposed for repeal will not be published.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 Commerce or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department of Commerce (TDOC) proposes the repeal of sec.sec.165. 1- 165.8 concerning allocation of private activity bonds. These sections concern TDOC's guidelines for making various determinations of the allocation of the state's limit on certain private activity bonds, and cover state's annual limit, allocation carryforward, and reservation system and applications, filings, fees, and submissions related thereto. TDOC no longer has this responsibility. The new administrative authority overseeing private activity bonds is the Texas Bond Review Board, which is currently proposing the adoption of its new rules, 34 TAC sec.sec.190.1-190.8. Sedora Jefferson, general counsel, has determined that for the first five-year period the repeals are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals. Ms. Jefferson also has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of enforcing the repeals will be compliance with Senate Bill 1070, sec.49, 72nd Legislature, Regular Session. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals as proposed. Comments on the proposal may be submitted to Sedora Jefferson, General Counsel, Texas Department of Commerce, P.O. Box 12728, Austin, Texas 78711, within 30 days after the date of this publication. The repeals are proposed under Texas Civil Statutes, Article 5190.9a and House Bill 1070, sec.49, 72nd Legislature, which provides that the Texas Department of Commerce will no longer have administrative responsibility for the private activity allocation and reservation system insofar as this responsibility has been given to the Bond Review Board. sec.165.1. General Provisions. sec.165.2. Allocation and Reservation System. sec.165.3. Filing Requirements for Applications for Reservation. sec.165.4. Filing Requirements for Applications for Carryforward. sec.165.5. Consideration of Qualified Applications by the Department. sec.165.6. Expiration and Extension Provisions. sec.165.7. Cancellation, Withdrawal, and Penalty Provisions. sec.165.8. Notices, Filings, and Submissions. 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 November 22, 1991. TRD-9114659 Sedora Jefferson General Counsel Texas Department of Commerce Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 320-9666 TITLE 16. ECONOMIC REGULATION Part II. Public Utility Commission of Texas Chapter 21. Practice and Procedure Ancillary Proceedings and Proceedings Beyond the Order 16 TAC sec.21.164 The Public Utility Commission of Texas proposes new sec.21.164, concerning the appeals of administrative penalties. The purpose of the new section is to develop a procedure by which those assessed a penalty by the commission may appeal such penalty. Suzi Ray, assistant 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. Ms. Ray 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 include specific procedures to simplify the appeals of administrative penalties. 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. Ms. Ray also has determined that for each year of the first five years the section is in effect there will be no impact on employment in the geographical areas affected by implementing the requirements of the section. Comments (13 copies) on the proposal may be submitted to Mary Ross McDonald, Secretary of the Commission, 7800 Shoal Creek Boulevard, Austin, Texas 78757, within 30 days after publication. Comments should refer to Project Number 10517. The new section is proposed under Texas Civil Statutes, Article 1446c sec.16(a) , which provide the Public Utility Commission of Texas with the authority to make and enforce the rules reasonably required in the exercise of its powers and jurisdiction. sec.21.164. Appeals of Administrative Penalties. (a) Within the 30-day period immediately following the day on which the commission's order is final, the person charged with a penalty shall pay the penalty in full. (b) The person assessed a penalty by the commission may suspend enforcement of the penalty while seeking judicial review by forwarding the amount of the penalty to the commission for placement in an escrow account or posting with the commission a supersedeas bond payable to the Public Utility Commission for the amount of the penalty, within the 30-day period immediately following the day on which the commission's order is final. (c) Failure to pay the penalty in full, or failure to forward the amount of the penalty for placement in an escrow account or post a supersedeas bond within the 30-day period immediately following the day on which the commission's order is final, shall result in a waiver of all legal rights to judicial review. In the event the person assessed fails to take any of the actions in this subsection and subsections (a) and (b) of this section, the general counsel, upon approval of the commission, may forward the matter to the attorney general for enforcement. (d) In the event that the final appellate determination is against the person assessed a penalty, he or she shall pay the commission the full amount of the penalty, and the commission shall deposit the amount of the penalty in the state treasury to the credit of the general revenue fund. (e) In the event that the final appellate determination is in favor of the person assessed, he or she shall be absolved of all liability for payment of the amount of the penalty, and the commission shall return the amount of the penalty assessed with a certificate of its return. (f) Any supersedeas bond or escrow account filed with the commission for the purpose of appeal of the final decision of the commission shall be drawn according to a form on file in the office of the secretary of the commission. Upon request, the secretary of the commission shall certify the receipt of the amount of any penalty received by the commission for the purpose of appeal. 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 November 22, 1991. TRD-9114683 Mary Ross McDonald Secretary of the Commission Public Utility Commission of Texas Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 458-0100 Chapter 23. Substantive Rules Certification The Public Utility Commission of Texas proposes the repeal of sec.23.32 and new sec.23.32, concerning automatic dial announcing devices. The purpose of the new section is to regulate the use of automatic dial announcing devices (ADADs). Suzi Ray, assistant general counsel, has determined that for the first five-year period the repeal and new section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal and new section. Ms. Ray also has determined that for each year of the first five years the repeal and new section are in effect the public benefit anticipated as a result of enforcing the repeal and new section will be to make the PUC rules consistent with the new statutory mandates of Senate Bill 1262. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal and new section as proposed. Ms. Ray also has determined that for each year of the first five years the repeal and new section are in effect there will be no impact on employment in the geographical areas affected by implementing the requirements of the section. Comments (13 copies) on the proposal may be submitted to Mary Ross McDonald, Secretary of the Commission, 7800 Shoal Creek Boulevard, Austin, Texas 78757, within 30 days after publication. Comments should refer to Project Number 10517. 16 TAC sec.23.32 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Public Utility Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Civil Statutes, Article 1446c sec.16(a), which provide the Public Utility Commission of Texas with the authority to make and enforce the rules reasonably required in the exercise of its powers and jurisdiction. sec.23.32. Permits for Automatic Dial Announcing Devices. 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 November 22, 1991. TRD-9114681 Mary Ross McDonald Secretary of the Commission Public Utility Commission of Texas Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 458-0100 The new section is proposed under Texas Civil Statutes, Article 1446c sec.16(a), which provide the Public Utility Commission of Texas with the authority to make and enforce the rules reasonably required in the exercise of its powers and jurisdiction. sec.23.32. Permits for Automatic Dial Announcing Devices. (a) Purpose. The purpose of this section is to regulate the use of automatic dial announcing devices. (b) Definition. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Automatic dial announcing device (ADAD) -Any automatic equipment used for telephone solicitation or collection that: (A) is capable of storing numbers to be called, or has a random or sequential number generator capable of producing numbers to be called; and (B) alone or in conjunction with other equipment, can convey a prerecorded or synthesized voice message to the number called without the use of a live operator. (2) Pay-per-call information service-A service that allows a caller to dial a specified "900" or "976" number to call a service that routinely delivers, for a predetermined and sometimes time-sensitive fee, a prerecorded or live message or interactive program. (3) Telephone solicitation-An unsolicited telephone call. (c) Requirement for use of an automatic dial announcing device. A person who operates an ADAD to make a telephone call in which the device plays a recorded message when a connection is completed to a telephone number must comply with the following requirements. (1) An ADAD operator must obtain a permit from the commission and give written notice specifying the type of device to be connected to each telecommunications utility over whose system the device is to be used. (2) The device must not be used for random number dialing or to dial numbers by successively increasing or decreasing integers. (3) The message must state during the first 30 seconds of the call the nature of the call, the identity of the person, company, or organization making the call, and the telephone number from which the call was made. (4) The device must disconnect from the called person's line no later than 30 seconds after the call is terminated by either party or, if the device cannot disconnect within that period, a live operator must introduce the call and receive the oral consent of the called person before beginning the message. (5) For calls terminating in this state, the device must not be used to make a call: (A) for solicitation before noon or after 9 p.m. on a Sunday or before 9 a.m. or after 9 p.m. on a weekday or a Saturday; or (B) for collection purposes at an hour at which collection calls would be prohibited under the federal Fair Debt Collection Practices Act (15 United States Code S1692 et seq). (6) Calls may not be made to emergency telephone numbers of hospitals, fire departments, law enforcement offices, or other entities providing emergency service. (7) If during a call a cross-promotion or reference to a pay-per-call information service is made, the call must include: (A) a statement that a charge will be incurred by a caller who makes a call to a pay-per-call information services telephone number; (B) the amount of the flat-rate or cost-per-minute charge that will be incurred or the amount of both if both charges will be incurred; and (C) the estimated amount of time required to receive the entire information offered by the service during a call. (d) Permit to operate an ADAD. (1) An application for a permit to use one or more ADADs must be made using a form prescribed by the commission and must be accompanied by a fee of $500. A permit is valid for one year after its date of issuance. A person holding a permit on the effective date of this rule must apply for renewal within 60 days. Subsequent renewals must be applied for no later than 90 days prior to the expiration date of the current permit. Subject to paragraph (3) of this subsection, a permit may be renewed annually by making the filing required by this section and paying a renewal fee of $100. (2) Each application for the issuance or renewal of a permit under this section must contain the telephone number of each ADAD that will be used and the physical address from which the ADAD will operate. If the telephone number of an ADAD or the physical address from which the ADAD operates changes, the owner or operator of the ADAD shall notify the commission by certified mail of each new number or address not later than the 48th hour before the hour at which the ADAD will begin operating with the new telephone number or at the new address. If the owner or operator of an ADAD fails to notify the commission as required by this subsection within the period prescribed by this subsection, the permit is automatically invalid. (3) In determining if a permit should be issued or renewed, the commission will consider the compliance record of the owner or operator of the ADAD. The commission may deny an application for the issuance or renewal of a permit because of the applicant's compliance record. (4) A LEC may obtain on request to the commission a copy of a permit issued under this section and of any changes relating to the permit. (5) The commission may revoke a permit to operate an ADAD for failure to comply with this section. (e) Exceptions. This section does not apply to the use of an ADAD to make a telephone call: (1) relating to an emergency or a public service under a program developed or approved by the emergency management coordinator of the county in which the call was received; or (2) made by a public or private primary or secondary school system to locate or account for a truant student. (f) Complaints, investigation, and enforcement. (1) If the commission determines that a person has violated the requirements of this section, the telecommunications utility providing service to the user of the ADAD shall disconnect service to the person. The telecommunications utility may reconnect service to the person only on a determination by the commission that the person will comply with this section. The utility shall give notice to the person using the device of the utility's intent to disconnect service not later than the third day before the date of the disconnection, except that if the device is causing network congestion or blockage, the notice may be given on the day before the date of disconnection. (2) A telecommunications utility may, without an order by the commission or a court, disconnect or refuse to connect service to a person using or intending to use an ADAD if the utility determines that the device would cause or is causing network harm. (3) A LEC that receives a complaint relating to the use of an ADAD shall send the complaint to the commission according to the following guidelines. (A) The complaint shall be recorded on a form prescribed by the commission. (B) The LEC shall inform the complainant that the complaint, including the identity of the complainant and other information relevant to the complaint, will be forwarded to the commission. (C) The complaint shall be forwarded to the commission within one business day of its receipt by the LEC. (g) Penalties. A person who operates an ADAD without a valid permit or with an expired permit or who otherwise operates the ADAD in violation of this section or a commission order is subject to an administrative penalty of not more than $1,000 for each day or portion of a day during which the ADAD was operating in violation of 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 November 22, 1991. TRD-9114682 Mary Ross McDonald Secretary of the Commission Public Utility Commission of Texas Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 458-0100 Certification 16 TAC sec.23.33 The Public Utility Commission of Texas proposes new sec.23.33, concerning telephone solicitation. The purpose of the new section is to require local exchange carriers (LECs) to inform their customers of provisions of the law regarding telephone solicitation and to ensure that telephone solicitors implement in-house systems and procedures to ensure that they do not repeatedly solicit persons who ask not to receive consumer telephone calls. Suzi Ray, assistant 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. Ms. Ray 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 making the PUC rules consistent with the new statutory mandates of Senate Bill 1169. Other public benefits include increased consumer awareness of the regulations imposed on telephone solicitation and improved systems and procedures by which telephone solicitors can prevent unwanted repetitive telephone solicitations on consumers. There will be no effect on small businesses as a result of enforcing the section. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Ms. Ray also has determined that for each year of the first five years the section is in effect there will be no impact on employment in the geographical areas affected by implementing the requirements of the section. Comments (13 copies) on the proposal may be submitted to Mary Ross McDonald, Secretary of the Commission, 7800 Shoal Creek Boulevard, Austin, Texas 78757, within 30 days after publication. Comments should refer to Project Number 10517. The new section is proposed under Texas Civil Statutes, Article 1446c sec.16(a) , which provide the Public Utility Commission of Texas with the authority to make and enforce the rules reasonably required in the exercise of its powers and jurisdiction. sec.23.33. Telephone Solicitation. (a) Purpose. The purpose of this section is to require local exchange carriers (LECs) to inform their customers of provisions of the law regarding telephone solicitation and to require telephone solicitors to implement systems and procedures to ensure that they do not repeatedly solicit persons who ask not to receive consumer telephone calls. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Consumer telephone call-An unsolicited call made to a residential telephone number to: (A) solicit a sale of consumer good or service; (B) solicit an extention of credit for a consumer good or service; or (C) obtain information that will or may be used to directly solicit a sale of a consumer good or service or to extend credit for the sale. (2) Consumer good or service- (A) real property or tangible or intangible personal property that is normally used for personal, family, or household purposes, including personal property intended to be attached to or installed in any real property; (B) a cemetary lot; (C) a time-share estate; or (D) a service related to real or personal property. (3) Telephone solicitor-A person who makes or causes to be made a consumer telephone call, including a call made by an automatic dial announcing device. (c) Responsibility of LECs. Each LEC shall inform its customers of the provisions of the Business and Commerce Code, Chapter 37, and the Public Utility Regulatory Act, sec.119 (Texas Civil Statutes, Article 1446c), by: (1) inserting a notice annually in the billing statement mailed to a customer; or (2) publishing a notice in the consumer information pages of its local telephone directory. (d) Responsibilities of telephone solicitors. Each telephone solicitor operating in this state who makes consumer telephone calls shall implement systems and procedures so that every effort is not made to call consumers who ask not to be called again. 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 November 22, 1991. TRD-9114684 Mary Ross McDonald Secretary of the Commission Public Utility Commission of Texas Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 458-0100 Customer Service and Protection 16 TAC sec.23.56 The Public Utility Commission of Texas proposes an amendment to sec.23.56, concerning the components of the dual-party relay service. The amendment provides for the establishment of a statewide telecommunications dual-party relay service for the hearing-impaired and speech-impaired using special equipment such as telecommunications devices for the deaf (TDDs), computers, and operator translations. The amendment is proposed to require that the dual-party relay service provide interstate service while reimbursement through the universal service fund (USF) is allowed for interstate service. The proposed amendment also sets out a detailed methodology for separating intrastate and interstate costs and for calculating intrastate and interstate assessments. The intrastate assessment rate for other telecommunications utilities shall be calculated based on intrastate local switching access minutes of use (MOU), while the interstate assessment rate for other telecommunications utilities shall be calculated based on interstate local switching access MOU. Suzi Ray, assistant 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. Ms. Ray 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 expansion of the scope of dual-party relay service to encompass interstate calling. There will be no effect on small businesses as a result of enforcing this section. The anticipated economic cost to other telecommunications utilities who are required to comply with the proposed section will be cost of funding the interstate portion of the service. However, this cost is expected to be offset by the other telecommunications utilities' decreased share of the cost of funding the intrastate portion of the service, as a result of previously adopted revisions to the assessment methodology. Ms. Ray also has determined that for each of the first five years the proposed section is in effect there will be no impact on employment in the geographical areas affected by implementing the requirements of this section. Comments on the proposed amendment (13 copies) may be submitted to Mary Ross McDonald, Secretary, Public Utility Commission of Texas, 7800 Shoal Creek Boulevard, Austin, Texas 78757, within 30 days after publication. Comments should refer to Project Number 10511. The amendment is proposed under Texas Civil Statutes, Article 1446c, sec.96A, which provide the Public Utility Commission of Texas with the authority to make and to enforce rules establishing a statewide telecommunications relay access service for the hearing-impaired and speech-impaired. sec.23.56. Statewide Dual-Party Relay Service. (a)-(c) (No change.) (d) Dual-party relay service. The dual-party relay service shall provide the hearing-impaired and speech-impaired with access to the telecommunications network in Texas equal to that provided other customers. (1) (No change.) (2) Components of the dual-party relay service. The dual-party relay service shall consist of the following: (A)-(I) (No change.) (J) capability for callers to be able to place calls through the dual-party relay service from locations other than their primary location and utilize alternate billing arrangements; [and] (K)
    capability of providing both inbound and outbound interstate service, except as provided in paragraph (3) of this subsection; and (L)
      [(K)] other service enhancements proposed by the relay service carrier and approved by the commission. (3) Scope of the dual-party relay service. The interstate service capability set forth in paragraph (2)(K) of this subsection shall be required as a component of the dual-party relay service only while reimbursement through the universal service fund is allowed for interstate service. The cost of providing interstate service will be reimbursed through the universal service fund until the earlier of July 26, 1993, or the time when the hearing-impaired or speech- impaired in Texas are provided interstate service through a service other than the statewide dual-party relay service. However, if federal funding is made available to the universal service fund for the purpose of funding the interstate service, the dual-party relay service may continue to provide interstate service after July 26, 1993.
        [The dual-party relay service should not duplicate any interstate relay services. However, the dual-party relay service should be capable of accommodating any interstate relay service that may be authorized and funded through federal jurisdiction. Additionally, interstate calling capability service may be offered as a service enhancement by the carrier. Any interstate service offered as a service enhancement cannot be reimbursed through the universal service fund and shall be calculated by the carrier in accordance with Federal Communications Commission Part 36 rules regarding separation of interstate and intrastate costs.] (4) Rates and charges. The following rates and charges shall apply to the dual- party relay service. (A)-(B) (No change.) (C) Interstate long distance charges. The rates for interstate service provided to users of the dual-party relay service shall be set by contract between the commission and the relay service carrier. The calling or called party shall bear one-half of the total charges established by this contract. (D)
          [(C)] Access charges. Local exchange carriers shall not impose access charges on calls that make use of this service and which originate and terminate within the same toll-free local calling scope. (E)
            [(D)] Billing and collection services. Upon request by the relay service carrier, local exchange carriers shall provide billing and collection services in support of this service at just and reasonable rates. (e)-(f) (No change.) (g) Recovery of costs through the universal service fund. (1) The relay service carrier will be reimbursed from the universal service fund for the costs of the service that are not paid by the calling or the called party. These costs may include a return on investment required to provide the service and the cost of unbillable and uncollectible calls placed through the service, provided that the cost of unbillable and uncollectible calls shall be subject to a reasonable limitation as determined by the commission, based on recommendations made by commission staff after reviewing such costs that are submitted for reimbursement. The relay service carrier shall submit a monthly report to the commission justifying its claims for reimbursement under the contract. Upon approval by the commission, the universal fund administrator as defined by sec.23.53(c)(1)(A) of this title (relating to Universal Service Fund)
              shall make a disbursement in the approved amount. (2)-(3) (No change.) (h) Universal service fund assessment. (1) Cost of the service. (A) The cost of the intrastate portion of the service is the sum of: (i) the amount paid to the relay carrier for the provision of intrastate calls based on the contracted rate per minute of service; (ii) an allocated portion of the expenses incurred by the commission and the administrator based on the ratio of intrastate calls to total calls, such ratio to be calculated annually at the same time that the commission reviews the assessment percentages; and (iii) any amount established as a reserve for such continencies as late payments and uncollectibles. (B) The cost of the interstate portion of the service is the sum of: (i) the amount paid to the relay carrier for the provision of interstate calls based on the contracted rate per minute of service; (ii) an allocated portion of the expenses incurred by the commission and the administrator based on the ratio of interstate calls to total calls, such ratio to be calculated annually at the same time that the commission reviews the assessment percentages; and (iii) any amount established as a reserve for such contingencies as late payments and uncollectibles. (2)
                [(1)] Funding for the intrastate portion of the service.
                  [Assessment of charges to local exchange carriers (LECs) and other telecommunications utilities.] The cost of the intrastate portion of the service shall be assessed to local exchange carriers (LECs) and other telecommunications utilities based on the assessment percentages established in subparagraph (A) of this paragraph.
                    [The commission shall set the appropriate assessment percentages for the funding of the service by all telecommunications utilities.] As used herein, the term "assessment percentages" means the proportion of the intrastate
                      dual-party relay service cost
                        [expenses] which is to be recovered from the LECs and the proportion which is to be recovered from other telecommunications utilities. (A) In setting the appropriate intrastate
                          assessment percentages for funding of the intrastate portion of the
                            service, the commission shall consider the aggregate calling pattern of the users of the intrastate portion of the
                              service. (i) The intrastate
                                assessment percentage assigned to the LECs will be based on: (I) local calls completed through the relay service; and (II) a share of the intrastate toll calls completed through the relay service that represents the LECs' carriage of intraLATA toll calls. (ii) The intrastate
                                  assessment percentage assigned to other telecommunications utilities will be based on a share of the intrastate toll calls completed through the relay service that represents the other telecommunications utilities' carriage of intrastate toll calls. (B) The commission shall review the assessment percentages annually and adjust the assessment percentages as found appropriate hereunder. Notification of the new assessment percentages will be made by publishing such assessment percentages in the Texas Register
                                    . The commission staff will notify the administrator of the universal service fund of the new assessment percentages. (3) Funding for the interstate portion of the service. One hundred percent of the cost of the interstate portion of the service shall be assessed to other telecommunications utilities. (4)
                                      [(2)] Division of LEC assessment among LECs. (A) The administrator shall establish an assessment rate to apply to LECs. This rate shall be calculated by dividing the cost assessed to LECs as set forth in paragraph (2) of this subsection for the current period by the total number of basic local service access lines as of December 31 of the previous year. (B) The assessment to each LEC shall be the number of that LEC's basic local service access lines as of December 31 of the previous year multiplied by the LEC assessment rate for the period.
                                        [Assessments to each LEC shall be made by the administrator of the universal service fund, as defined by sec.23.53(c)(1)(A) of this title (relating to Universal Service Fund) based on an LEC's share of the total number of basic local service access lines as of December 31 of the previous year.] (5) Division of other telecommunications utilities' intrastate assessment among other telecommunications utilities. (A) The administrator shall establish an intrastate assessment rate to apply to other telecommunications utilities. This rate shall be calculated by dividing the cost assessed to other telecommunications utilities as set forth in paragraph (2) of this subsection for the current period by the total intrastate local switching access minutes of use (MOU) as set forth in subparagraph (B) of this paragraph for the current period. (B) Intrastate local switching access MOU are all minutes for which telecommunications utilities are billed the local switching rate element (e.g. LSl. LS2) from the LEC's intrastate access service tariff. These minutes shall include sent paid, sent collect, and originating 800 service. For services not billed the local switching rate element, intrastate local switching access MOU will be the assumed MOU as defined in the LEC's intrastate access service tariff multiplied by the number of intrastate voice grade equivalents billed to that telecommunications utility. (C) The intrastate assessment to each other telecommunications utility shall be the amount of that utility's intrastate access MOU multiplied by the intrastate assessment rate for the period. (6) Division of other telecommunications utilities' interstate assessment among other telecommunications utilities. (A) The administrator shall establish an interstate assessment rate to apply to other telecommunications utilities. This rate shall be calculated by dividing the cost assessed to other telecommunications utilities as set forth in paragraph (3) of this subsection for the current period by the total interstate local switching access minutes of use (MOU) as set forth in subparagraph (B) of this paragraph for the current period. (B) Interstate local switching access MOU are all minutes for which telecommunications utilities are billed the local switching rate element (e.g. LS1, LS2) from the LEC's interstate access service tariff. These minutes shall include sent paid, sent collect, and originating 800 service. For services not billed the local switching rate element, interstate local switching access MOU will be the assumed MOU as defined in the LEC's interstate access service tariff multiplied by the number of interstate voice grade equivalents billed to that telecommunications utility. (C) The interstate assessment to each other telecommunications utility shall be the amount of that utility's interstate access MOU multiplied by the interstate assessment rate for the period. [(3) Division of other telecommunications utilities assessment among other telecommunications utilities. Assessments to each other telecommunications utility shall be made by the administrator on the same basis as the universal service fund assessments described in sec.23.53 of this titlte (relating to Universal Service Fund).] (i)-(m) (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 November 22, 1991. TRD-9114685 Mary Ross McDonald Secretary of the Commission Public Utility Commission of Texas Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 458-0100 TITLE 22. EXAMINING BOARDS Part XXI. Texas State Board of Examiners of Psychologists Chapter 463. Applications 22 TAC sec.463.6 The Texas State Board of Examiners of Psychologists proposes an amendment to sec.463.6, concerning experience. The amendment changes the effective date to 1995 in order not to penalize those applicants who have already begun their internship programs but will not be eligible to apply for licensure prior to August 31, 1993; and, to clarify how persons employed in public school districts can satisfy the board's experience requirements. Patricia S. Bizzell Tweedy, 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. Ms. Bizzell Tweedy 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 to clarify the board's requirements for licensure so that potential applicants will place themselves in appropriate work settings to obtain experience that will be acceptable to the 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 Patricia S. Bizzell Tweedy, M.P. A., 9101 Burnet Road, Suite 212, Austin, Texas 78758. The amendment is proposed under Texas Civil Statutes, Article 4512c, which provide the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and laws of this state, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. sec.463.6. Experience. Supervision may be obtained only in a full-time or half- time setting. (1)-(10) (No change.) (11) For applications for licensure received after August 31, 1995
                                          [1993], the one year of predoctoral experience must be an internship certified by the director of internship training and must be satisfied by either: (A) (No changes.) (B) the successful completion of an organized internship meeting the following criteria. (i)-(xi) (No changes.) (xii) A year of full-time supervised experience is defined as a minimum of 35 hours per week employment/experience in not less than 12 consecutive calendar months in not more than two placements. A year of half-time supervised experience is defined as a minimum of 20 hours per week employment/experience in not less than 24 consecutive calendar months in not more than two placements. One calendar year from the beginning of 10 consecutive calendar months of employment/experience in a school district constitutes one year of supervised experience. (xiii) Two psychologists on staff (see clause (iii) of this subparagraph) and two interns (see clause (x) of this subparagraph) may be met by a consortium formed by two or more independent school districts. (c) (No changes.) 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 November 18, 1991. TRD-9114604 Patricia S. Bizzell Tweedy Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 835-2036 22 TAC sec.463.25 The Texas State Board of Examiners of Psychologists proposes an amendment to sec.463.25, concerning criteria for oral examiners. The amendment clarifies that in order to qualify as an oral examiner, the psychologist must be currently licensed and actively practicing in his/her area of expertise and training. Patricia S. Bizzell Tweedy, 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. Ms. Bizzell Tweedy 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 to insure that examiners are experienced and qualified to administer the oral examination. 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 Patricia S. Bizzell Tweedy, M.P. A., 9101 Burnet Road, Suite 212, Austin, Texas 78758. The amendment is proposed under Texas Civil Statutes, Article 4512c, which provide the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and laws of this state, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. sec.463.25. Criteria for Oral Examiners. Examiners for the oral examination must satisfy the following criteria. (1) Examiner must currently be a licensed psychologist and must have practiced within his/her area of expertise and training for the past five years. [(1) Examiner must be a licensed psychologist with five years of independent practice, teaching, or research experience.] (2)-(4) (No changes.) 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 November 18, 1991. TRD-9114603 Patricia S. Bizzell Tweedy Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 835-2036 Chapter 465. Rules of Practice 22 TAC sec.465.21 The Texas State Board of Examiners of Psychologists proposes an amendment to sec.465.21, concerning inactive status. This rule addresses the requirements of the board for a certificand and/or licensee who places his/her certificate/license on an inactive status. The rule will be enforced from the date of adoption; it will not effect those persons who have placed their certificates and/or licenses on an inactive status prior to that time. Patricia S. Bizzell Tweedy, 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. Ms. Bizzell Tweedy 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 to provide an avenue for the board to review the credentials of persons who have not been practicing psychology for at least two years. The purpose of the rule is to protect the public to insure that services are provided by persons who remain current with professional standards. 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 Patricia S. Bizzell Tweedy, M.P. A., 9101 Burnet Road, Suite 212, Austin, Texas 78758. The amendment is proposed under Texas Civil Statutes, Article 4512c, which provide the Texas State Board of Examiners of Psychology with the authority to make all rules, not inconsistent with the Constitution and laws of this state, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. sec.465.21. Inactive Status. A person may place his/her active certificate and/or license on an inactive status for a period of two years. After two years a person must reapply for certification. Consideration will be given to the reason for the length of absence from the profession. The board may require the person to take or retake the Examiners of Professional Practices and Psychology, jurisprudence, and/or oral examinations. The board may also require other knowledge or skill training experience. Individuals may not continue on inactive status beyond two years without having returned to active status.
                                            [Persons who place their certification and/or licensure on an inactive status for a period of six years or more must request reactivation from the board. Consideration will be given to the reason for the length of the person to take or retake the certification examinations and/or require other knowledge or skill training experiences.] 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 November 18, 1991. TRD-9114605 Patricia S. Bizzell Tweedy Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 835-2036 22 TAC sec.465.28 The Texas State Board of Examiners of Psychologists proposes new sec.465.28, concerning rules of practice. The new section concerns career and vocational counseling which psychologists are trained to do within their doctoral programs. Patricia S. Bizzell Tweedy, 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. Ms. Bizzell Tweedy 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 to put the public on notice that psychologists are trained in career and vocational counseling within their doctoral programs. 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 Patricia S. Bizzell Tweedy, M.P. A., 9101 Burnet Road Suite 212, Austin, Texas 78758. The new section is proposed under Texas Civil Statutes, Article 4512c, which provide the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and laws of this state, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. sec.465.28. Career and Vocational Counseling. The practice of psychology includes, but it not limited to, career and vocational counseling. 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 November 18, 1991. TRD-9114601 Patricia S. Bizzell Tweedy Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 835-2036 Chapter 473. Fees 22 TAC sec.473.1 The Texas State Board of Examiners of Psychologists proposes an amendment to sec.473.1, concerning fees. The amendment concerns reciprocity fees which are required as a result of legislation passed by the 72nd Legislature. Patricia S. Bizzell Tweedy, 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. Ms. Bizzell Tweedy 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 attached fee to a new requirement of the Psychologists' Certification and Licensing Act passed by the 72nd Legislature. This will allow psychologists from other states to be considered for licensure. 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 Patricia S. Bizzell Tweedy, M.P. A., 9101 Burnet Road, Suite 212, Austin, Texas 78758. The amendment is proposed under Texas Civil Statutes, Article 4512c, which provide the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and laws of this state, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. sec.473.1. Application Fees (Not Refundable). (a-(d) (No changes.) (e) reciprocity-$220. (f)
                                              [(e)] Temporary permit -$260. 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 November 18, 1991. TRD-9114599 Patricia S. Bizzell Tweedy Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 835-2036 22 TAC sec.473.3 The Texas State Board of Examiners of Psychologists proposes an amendment to sec.473.3, concerning fees. The amendment concerns fees for psychological associates to renew their certificates. Patricia S. Bizzell Tweedy, 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. Bizzell Tweedy 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 to collect fees necessary to provide credentials review and monitoring of those persons wanting to be certified as a psychological associate. 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 Patricia S. Bizzell Tweedy, M.P. A., 9101 Burnet Road Suite 212, Austin, Texas 78758. The amendment is proposed under Texas Civil Statutes, Article 4512c, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and laws of this state, which are reasonable necessary for the proper performance of its duties and regulations of proceedings before it. sec.473.3. Annual Renewal Fees (Not Refundable). (a) Psychological associate certification-$70
                                                [$50]. (b)-(d) (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 November 18, 1991. TRD-9114602 Patricia S. Bizzell Tweedy Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 835-2036 22 TAC sec.473.6 The Texas State Board of Examiners of Psychologists proposes new sec.473.6, concerning reciprocity fees. The board determined that the cost of a reciprocity applicant is 50% of the cost of the certification and licensure applicant. Patricia S. Bizzell Tweedy, 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. Ms. Bizzell Tweedy also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that the public will receive information about fee requirements for reciprocity. 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 Patricia S. Bizzell Tweedy, M.P. A., 9101 Burnet Road, Suite 212, Austin, Texas 78758. The new section is proposed under Texas Civil Statutes, Article 4512c, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and laws of this state, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. sec.473.6. Reciprocity Fee.
                                                  The reciprocity fee is 50% of the combined total of the psychologist certification and licensure 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 November 18, 1991. TRD-9114600 Patricia S. Bizzell Tweedy Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 835-2036 Part XXIII. Texas Real Estate Commission Chapter 535. Provisions of the Real Estate License Act Licenses 22 TAC sec.535.95 The Texas Real Estate Commission proposes new sec.535.95, concerning license renewals. The new section is necessary for the commission to comply with recent legislation affecting occupational licenses. The new section permits a licensee on active military duty to renew an expired license by documenting active duty outside the state, applying for renewal within 90 days after the active duty ends, paying the renewal fee in effect when the license expired, and satisfying any education requirements that would have been imposed for a timely renewal. If a licensee complies with the provisions of the new section, the licensee would not be subject to any increases in fees, additional education, experience, or an examination in order to renew the expired license. The new section would be adopted in compliance with House Bill 1393, 72nd Legislature, 1991, which requires state agencies issuing licenses to adopt rules to exempt a licensee from increased fees or other penalties for failure to renew a license if the licensee was on active duty in the United States armed forces serving outside the State of Texas. The new section also addresses licensees who have defaulted on a student loan guaranteed by the Texas Guaranteed Student Loan Corporation (TGSLC). The new section provides that license renewals are subject to the Texas Education Code, sec.57.491, and that the commission must give notice and opportunity for a hearing prior to declining to renew a license for defaulting on a TGSLC loan or a repayment agreement. The new section also requires the commission to advise licensees of the effect of a default on subsequent license renewals. 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 compliance with state laws affecting occupational licenses. 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 Mark A. Moseley, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. The new section 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.535.95. Miscellaneous Provisions Concerning License Renewals. (a) A licensee on active duty in the United States armed forces serving outside the State of Texas may renew an expired license without being subject to any increase in fee, additional education or experience requirements, or examination if the licensee: (1) provides documentation in a form acceptable to the commission that the license was on active duty outside the state during the licensee's last renewal period; (2) applies for the renewal within 90 days after the licensee's active duty ends; (3) pays the renewal application fee in effect when the previous license expired; and (4) satisfies any education requirement that would have been imposed as a condition of the timely renewal of the license. (b) Renewals of licenses issued by the commission are subject to the policies established by the Texas Education Code, sec.57.491. Before the commission declines to renew a license due to a default on a loan guaranteed by Texas Guaranteed Student Loan Corporation (TGSLC), a default on a repayment agreement with TGSLC, the commission shall give notice and provide an opportunity for a hearing in accordance with the provisions of Texas Civil Statutes, Article 6252- 13a, sec.18. The commission shall advise licensees in renewal notices and license application forms that default on a loan guaranteed by the TGSLC may prevent a subsequent renewal of a license. 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 November 20, 1991. TRD-9114585 Mark A. Moseley General Counsel Texas Real Estate Commission Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 465-3900 Licensed Real Estate Inspectors 22 TAC sec.535.216, sec.535.218 The Texas Real Estate Commission proposes new sec.535.216 and sec.535.218, concerning renewal of license or registration and continuing education. New sec.535.216 relates to real estate inspectors, inspectors-in-training, and registered apprentice inspectors. New sec.535.218 relates to real estate inspectors and inspectors-in-training. New sec.535.216 is necessary to establish a procedure for renewal of license or registration. The commission would be required to notify the registrant or licensee at least 30 days prior to the expiration of the current license or registration. The licensee or registrant would be required to file the prescribed application prior to expiration, pay the appropriate fee, and satisfy applicable continuing education. Continuing education is not required for apprentice inspectors, but apprentice inspectors would be required to be sponsored by a licensed inspector in order to renew a registration. The new section would also clarify that renewals submitted after expiration are subject to the increased fees provided by Texas Civil Statutes, Article 6573a, sec.23(f). Registrants or licensees who file renewal applications after expiration would not be permitted to practice until the new certificate is received. New sec.535.218 is necessary to establish guidelines for the acceptance of continuing education courses submitted for the renewal of inspector and inspector-in-training licenses. Inspectors-in-training are required by law to complete four hours of core real estate inspection courses to renew their licenses. Licensed inspectors must complete eight hours of continuing education. Continuing education courses would be subject to sec.535.212, which requires core real estate inspection courses to be approved by the commission in order to be accepted. The new section would require a continuing education course to be completed during the 12-month period immediately preceding the expiration date of the current license. Credit could not be given for the same course twice within the 12-month period. The new section also clarifies that continuing education courses are not required of an inspector licensed under the prior law until the inspector has received a new license under current law. The new section also would require an inspector licensee who files a renewal application after expiration of the current license to complete any continuing education that would have been required for a timely renewal. The new sections have been recommended for adoption by the Texas Real Estate Inspector Committee, an advisory committee appointed by the commission under Texas Civil Statutes, Article 6573b, sec.23(b). Jack Morris, director of programs, has determined that for the first five-year period the sections are in effect there will be minimal fiscal implications for the state as a result of enforcing or administering the sections. Costs to the state will be limited to the printing and mailing of renewal application forms. There will be no fiscal implications for local government. Mr. Morris 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 orderly procedures for renewing inspector licenses or registrations and satisfying continuing education requirements. There will be no effect on small businesses. The only anticipated economic cost to persons who are required to comply with the sections as proposed would be filing fees ranging from $35 to $50 and an estimated $5.00 per credit hour of continuing education courses. There will be no impact on local employment. 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. 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. sec.535.216. Renewal of License or Registration. (a) A person registered or licensed by the commission under Texas Civil Statutes, Article 6573a (the Act), sec.23, may renew the registration or license by timely filing the prescribed application for renewal, paying the appropriate fee to the commission and satisfying applicable continuing education requirements as required by the Act, sec.23(k), and by sec.535.218 of this title (relating to Continuing Education). (b) The commission shall mail the prescribed renewal application form to the last known business address of the registrant or licensee at least 30 days prior to the expiration of the registration or license. An apprentice inspector or an inspector-in-training must be sponsored by a licensed real estate inspector in order to renew a registration or license. It is the responsibility of the registrant or licensee to apply for renewal, and failure to receive a renewal application form does not relieve the registrant or licensee of the responsibility of applying for renewal. (c) Renewal applications filed after expiration of the registration or license are subject to the increased fees provided by the Act, sec.23(f). (d) A renewal application is deemed filed when placed in the mail properly addressed to the commission with appropriate postage paid. (e) A registrant or licensee who timely files a renewal application may continue to practice prior to receiving a new registration or license certificate from the commission. A registrant or licensee whose registration or license expires before the renewal application is filed may not practice until the new certificate is received. sec.535.218. Continuing Education. (a) Except as provided by this section, core real estate inspection courses submitted by inspectors or inspectors-in-training to satisfy the requirements of Texas Civil Statutes, Article 6573a (the Act), sec.23(k) for continuing education must comply with sec.535.212 of this title (relating to Education and Experience Requirements for a License). (b) Courses submitted for continuing education credit must be successfully completed during the 12-month period immediately preceding the expiration date of the license which is being renewed. The commission may not grant continuing education credit twice for the same course taken by a licensee within a 12-month period. (c) An inspector licensed under the prior law is subject to the continuing education requirements of the Act once the inspector has completed the core real estate inspection courses required to receive a new license under the Act. (d) An inspector or inspector-in-training who fails to renew a license which was subject to continuing education requirements and who files an application for renewal within one year after the previous license has expired must provide evidence satisfactory to the commission that the applicant has completed any continuing education that would have been required for renewal of the previous license. Continuing education courses submitted as part of the application must have been completed within a 24-month period prior to the filing of the application. 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 November 20, 1991. TRD-9114584 Mark A. Moseley General Counsel Texas Real Estate Commission Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 465-3900 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 1. General Administration Subchapter E. Notice of Policyholder Complaint Procedure 28 TAC sec.1.602 The State Board of Insurance proposes new sec.1.602, concerning the requirement for notice of an insurer's toll-free telephone number. The section clarifies the manner in which the notice required by the Insurance Code, Article 21.71, may be given to insured persons. Section 1.602(a) specifies the insurers to whom the rule applies. Section 1.602(b) defines the term "gross initial premium receipts" and provides the term "policy" includes an annuity contract and a health maintenance organization contract. Section 1.602(c) outlines the manner in which notice of a toll-free telephone number must be given. Section 1. 602(d) provides the manner in which notice must be given when a policy is renewed on or after September 1, 1991. Section 1.602(e) outlines procedures for insurers claiming an exception from the requirements. Section 1.602(f) provides the way in which notice must be given to a person who is added as an insured, annuitant or enrollee to an existing policy or plan. Brenda Caldwell, deputy commissioner for statutory implementation, 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. Caldwell, 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 in providing insureds, annuitants, certificate holders, and enrollees a means of ascertaining the toll-free information and complaint telephone number of the insurer or health maintenance organization. This information will assist insureds, annuitants, and enrollees to more easily communicate with the insurer or health maintenance organization about their policy or plan. There will be no effect on small businesses. The Insurance Code, Article 21.71, requires that the information be provided; the proposed section guides insurers as to the means of providing the information. Ms. Caldwell has determined for the first year the provision is in effect, the cost to each insurer or health maintenance organization complying with the rule will be at least $500 and possibly as much as $10,000 depending on the method of compliance the insurer or organization chooses. The cost in the second through fifth years will range from $500 to $1,000. The cost to insurers who claim an exception from the statute and who must file a statement as required by the proposed section will be $1,000 per year for the first five years the section is in effect. Comments on the proposal may be submitted to Brenda Caldwell, deputy insurance commissioner for statutory implementation, Mail Code 112-2A, Texas Department of Insurance, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104. The new section is proposed pursuant to the Insurance Code, Article 21.71(d), Article 3.42, Article 3.51-6, sec.1(d)(1), and sec.5, Article 20A.09, Article 20A. 22, Article 1.04(b), and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. Article 21.71(d) authorizes the agency to adopt rules governing the manner in which the toll-free telephone number appears on a policy. Article 3.42 provides the Texas Department of Insurance the statutory authority to review and approve forms relating to life, accident and health insurance policies, and annuity contracts, including certificates issued pursuant to group life, accident and health insurance policies, and certificates issued pursuant to group annuity contracts. Article 3.42(f) provides that the department may disapprove any such form which does not comply with applicable law and rules. Article 3.42(j) provides that the board is authorized to adopt rules necessary to implement the provisions of Article 3.42. Article 3.51-6, sec.1(d)(1) provides for group accident and health coverage conformity requirements. Article 3.51-6, sec.5 provides that the board is authorized to issue such rules and regulations as are necessary to administer statutory provisions relating to group accident and health coverages. Article 20A.09(a)(2) and Article 20A.09(c) require that group contracts and evidences of coverage be approved before issuance. Article 20A.22 provides that the board is authorized to adopt rules necessary to implement the provisions of the HMO Act. Article 1.04(b) authorizes the board to determine rules. Texas Civil Statutes, Article 6252-13a, sec.4, authorize and require each state agency to adopt rules of practice setting forth the nature and requirement of available procedures; sec.5 prescribe the procedures for adoption of rules by a state administrative agency. sec.1.602. Insurer's Toll-Free Telephone Number. (a) Applicability. (1) Except as provided by paragraph (2) of this subsection, this section applies to any insurer authorized to do business as an insurance company, to provide insurance, to provide a health care plan, or to provide a single health care plan in this state, including a: (A) capital stock company; (B) mutual company; (C) title insurance company; (D) fraternal benefit society; (E) local mutual aid association; (F) statewide mutual assessment company; (G) county mutual insurance company; (H) Lloyd's plan company; (I) reciprocal or interinsurance exchange; (J) stipulated premium insurance company; (K) group hospital service company; (L) health maintenance organization; and (M) risk retention group. (2) This section does not apply to an insurer: (A) whose gross initial premium receipts collected in this state are less than $2 million a year; or (B) with regard to fidelity, surety, or guaranty bonds. (3) Personnel of any insurer or health maintenance organization required by this section to install and maintain a toll-free telephone number to provide information and receive complaints shall provide such service during regular business hours. (b) Definitions. The following words and terms when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Gross initial premium receipts- (A) for life, accident and health insurers, the gross premium receipts attributable to new business written in Texas during a calendar year, including premium receipts for individuals added to a group life or group accident and health insurance policy, or a group annuity contract. New business includes direct writings by the insurer and any business fully assumed by the insurer, whereby it assumes direct risk of providing services to insureds. If coverage is changed for a group by issuance of a new policy or new or additional certificates of coverage, the premiums collected for the first year of coverage under the new policy or certificates of coverage will constitute new business, even if the insureds were previously covered under a different policy; (B) for property and casualty insurers, the gross direct premiums written in Texas during a calendar year; and (C) for health maintenance organizations, the premiums collected on new business during a calendar year for the first year of coverage for enrollees. New business includes direct writings by the health maintenance organization and any business fully assumed by the organization whereby it assumes direct risk of providing services to the enrollees. If coverage is changed for a group or individual subscriber by issuance of a new contract or evidence of coverage, the premiums collected during a calendar year for the first year of coverage under the new contract or evidence of coverage will constitute new business, even though the individual subscriber or group of enrollees was previously covered under a different contract or evidence of coverage. Insurance policy -Any policy, contract, or agreement by which insurance coverage is provided to an individual or group of individuals, including an annuity contract, and a health maintenance organization contract. Toll-free telephone number-a telephone number printed on the policy which can be used by any person covered by such policy to obtain information or make a complaint without incurring long-distance calling expenses. (c) Notice requirements. (1) All policies, certificates issued pursuant to group policies, or evidences of coverage which are delivered, issued for delivery or renewed in the State of Texas on or after September 1, 1991, by insurers or health maintenance organizations subject to this section, shall have printed on the policy, certificate, or evidence of coverage the insurer's toll-free telephone number. The number shall appear on the policy, certificate, or evidence of coverage with the following text in both English and Spanish: [graphic] (2) The notice must be printed entirely in upper case letters on the policy, certificate, or evidence of coverage, rather than being separately attached or stapled. The notice shall be printed in one of the following ways: (A) in no smaller than 14-point boldface type (where 1 point is 1/72 of an inch) on the declarations page or face page of the policy or in a prominent, conspicuous place on the certificate or evidence of coverage; (B) in no smaller than 10-point boldface type (where 1 point is 1/72nd of an inch) on a separate, numbered full page of the policy following the declarations page or face page and appropriately identified as an endorsement form or notice form; (C) in no smaller than 10-point boldface type (where 1 point is 1/72nd of an inch) on the declarations page or face page of the policy or on the certificate or evidence of coverage in an ink color different from that of the other printed text appearing on the same page as the notice; or (D) in no smaller than 10-point boldface type (where 1 point is 1/72nd of an inch) on the declarations page or face page of the policy or on the certificate or evidence of coverage and set-off from the other printed text by at least 1/2 inch of white space before and after an unbroken double-line or unbroken boldface border surrounding the notice. (3) Any insurer or health maintenance organization which has existing form inventories is authorized to comply with this section by stamping the notice on the policy, or affixing a preprinted adhesive label on the policy, provided that requirements set out in this subsection are otherwise met. Such insurers or health maintenance organizations are authorized to utilize stamping or affixing only until those existing form inventories are exhausted, and in any event such method of compliance shall only be permitted until January 31, 1992. (4) Insurers may not limit the statement in paragraph (1) of this subsection with prefatory text other than the words "IMPORTANT NOTICE". However, the notice may be followed by this statement in both English and Spanish: [graphic] (d) Policies renewed on or after September 1, 1991. (1) For all policies, certificates, or evidences of coverage renewed by any insurer or health maintenance organization on or after September 1, 1991, the notice required to be provided by this section must be mailed to the insured, certificate holder, or enrollee along with the premium notice, renewal notice, or other communication indicating renewal of the coverage. For group policies renewed by any insurer or health maintenance organization on or after September 1, 1991, the notice required to be provided by this section may be provided to the group policyholder for delivery to each certificate holder or enrollee under the group policy, or it may be mailed directly to each certificate holder or enrollee by the insurer or health maintenance organization. (2) The notice provided to such persons shall be in no smaller than 10- point boldface type (where 1 point is 1/72 of an inch) and be printed on a separate, full page (no smaller than 8 1/2 x 11 inches) in the format and with capitalization and punctuation as follows, in both English and Spanish: [graphic] (3) The notice shall not contain any other text but may be followed by this statement in both English and Spanish: [graphic] (e) Exceptions. (1) Requirements. Any exception claimed pursuant to subsection (a)(2)(A) of this section for a policy, certificate, or evidence of coverage delivered, issued for delivery, or renewed in a given year must be based on gross initial premium receipts collected in Texas during the previous calendar year. Any insurer or health maintenance organization claiming an exception must provide to the Texas Department of Insurance, at a minimum, the following information: (A) a statement reciting the statutory basis for the exception; (B) a statement detailing the amount of gross initial premium receipts collected in this state for the calendar year immediately preceding the calendar year for which an exception is claimed; and (C) an affirmation by the chief executive officer or chief financial officer of the insurer or health maintenance organization certifying that he or she has reviewed the information and that such filed information is true, accurate, and complete, based upon that person's best knowledge, information, and belief. (2) Procedure. This statement must be filed separately from all other forms and exception statements filed in regard to other matters pending before the department. Claims for exception must be addressed to the appropriate regulatory division within the department. (3) Duration of exception. Authorized exceptions remain in effect for one year. The information required by subsection (e)(1) of this section must be provided to the department each year an exception is claimed. Mail codes for various divisions may be obtained from the Texas Department of Insurance, Publications Division, P.O. Box 149104, MC 108-5A, Austin, Texas 78714-9104. (4) Policy and form filings. When an insurer or health maintenance organization files a policy form or evidence of coverage with the department for information or review, any exception to the requirements of this section must be noted in the filing. If a prior exception has not been granted, the documentation required by paragraph (1) of this subsection must be filed. (f) Additions to group coverage. When an individual is added as a certificate holder, annuitant, or enrollee to a policy or plan issued, delivered, or renewed on or after September 1, 1991, the notice required by this section must be printed on the certificate or evidence of coverage that is required to be provided to the individual. 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 November 21, 1991. TRD-9114724 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 463-6328 Chapter 15. Surplus Lines Insurance Subchapter A. General Regulation of Surplus Lines Insurance 28 TAC sec.sec.15.2, 15.7, 15.8, 15.11-15.15, 15.19, 15.21, 15. 25-15.27, 15.101 The Texas Department of Insurance proposes amendments to ssec.15.2, 15.7, 15.8, 15.11-15.15, 15.19, 15.21, 15.25-15.27, and 15.101, concerning the regulation of surplus lines insurance. The amendments to sec.sec.15.2, 15.7, 15.8, 15.11- 15.15, 15.19, 15.21, and 15.25-15.27 clarify the conditions regarding refusal and denial of a license, relate to eligibility requirements for surplus lines insurers, relate to compliance under sec.15.101, the stamping fee as approved by the board, where to obtain forms and responsibility for copying forms, filing semiannual tax report, reporting of unauthorized insurance, the filing of surplus lines affidavits, the location of specified language on each surplus lines policy, delete references to obsolete forms, delete reference to actual percentage rate for stamping fees, clarify types of records surplus lines agents must retain, clarify requirements before an exemption from required capital and surplus is granted, and the correct agency name for the deposit of tax monies. The amendments also eliminate provisions regarding investigations by the Surplus Lines Stamping Office of Texas, since that office is no longer involved in investigations. The amendments clarify the intention of the sections and eliminate redundant provisions. The amendment of sec.15.101 is necessary to incorporate the changes to the Insurance Code, Article 1.14-2, occasioned by the passage of House Bill 2 into law during the 72nd Legislature regarding the organization of the Board of Directors of the Surplus Lines Stamping Office of Texas, which requires a nine-member board with four members representing the general public. Richard B. Schroeter, director, surplus and excess lines activity, 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, and there will be no effect on local employment or local economy. Mr. Schroeter 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 more effective regulation of surplus lines insurance. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed amended sections as proposed. Comments on the proposal may be submitted to Richard B. Schroeter, Director, Surplus and Excess Lines Activity, Mail Code 304-4A, Texas Department of Insurance, 333 Guadalupe, P.O. Box 149104, Austin, Texas 78714-9104. The amendments are proposed under the Insurance Code, Articles 1.04 and 1. 14-2. Article 1.04 authorizes the State Board of Insurance to determine rules in accordance with the laws of this state. Article 1.14-2, 3A, provides that the Texas Department of Insurance may promulgate rules to enforce Article 1.14-2, and provides that the Texas Department of Insurance shall monitor the activities of surplus lines agents to the extent necessary to protect the public interest. sec.15.2. Qualifications Required of Surplus Lines License Applicant. Because of the importance and trust involved in performing surplus lines insurance placement, as a condition of licensure and continuing licensure, each licensee must be capable of discharging and must faithfully discharge to the citizens of this state the high degree of responsibility demanded of a surplus lines agent. A surplus lines agent may hold a license only on the following conditions and the Texas Department of Insurance may refuse or deny a license if any of the following conditions are not met: (1)-(6) (No change.) sec.15.7. Eligibility Requirements for Surplus Lines Insurance. (a) -(c) (No change.) (d) The stamping office shall provide a written report to the commissioner of any surplus lines insurance policy or contract which appears, after evaluation under this section, to be ineligible under the Insurance Code, Article 1.14-2. Such report shall be provided to the commissioner upon a determination by the stamping office that [voluntary] compliance as provided in sec.15.101 of this title (relating to Plan of Operation of the Surplus Lines Stamping Office of Texas) cannot be obtained. Such report shall remain privileged and confidential unless and until introduced into evidence at an administrative hearing or in a court of competent jurisdiction. (e) (No change.) sec.15.8. Eligibility Requirements of Surplus Lines Insurers. (a) An unauthorized insurer is not eligible to write surplus lines insurance in this state under the following circumstances: (1)-(5) (No change.) [(6) it is admitted to do business in this state for any purpose, except in accordance with the provisions of the Insurance Code, Article 8.24;] (6)
                                                    [(7)] it is an alien unauthorized insurer and does not provide evidence of an irrevocable trust fund in a Federal Reserve System member bank in the United States in an amount not less than $1.5 million for the protection of all its policyholders in the United States. Such trust fund must comply with the Insurance Code, Article 1.14-2, sec.8(d); (7)
                                                      [(8)] it does not provide evidence of a license or authority from its domiciliary state or country that it is authorized in that state or country to write the kind and class of business that it proposes to write in Texas. (b)-(i) (No change.) sec.15.11. Surplus Lines Stamping Fee. For each surplus lines policy, contract, or other detailed evidence of coverage, including additions or deletions thereto or cancellations thereof, issued on Texas risks with an effective date on or after July 1, 1988, each surplus lines agent or agency shall submit a stamping fee as approved by the State Board of Insurance
                                                        [not to exceed 0.4 of 1.0% of gross premiums on policies and contracts]. Such fees shall be due and payable as provided in sec.15.23 of this title (relating to Policy Forms Filings and Stamping Office Fees). sec.15.12. Uniformity of Reporting Forms. [(a)] Information and memorandums required under the Insurance Code, Article 1.14-1 and Article 1.14-2, and required by this subchapter relating to surplus lines insurance, shall be submitted on the forms listed in this subsection. These forms [and Form F-SBI-SL-1] are adopted herein by reference and made a part of this subchapter in order to establish uniformity of records and to facilitate the orderly processing of required information. These forms [and Form F-SBI-SL-1] are published by the Texas Department of Insurance
                                                          [State Board of Insurance] and may be obtained from the Texas Department of Insurance, 333 Guadalupe, P.O. Box 149104, Austin, Texas 78714-9104, or from the
                                                            Surplus Lines Stamping Office of Texas, P.O. Box 9906, Austin, Texas 78766- 9906. Each surplus lines agent is responsible for making additional copies of the forms by photocopying or printing. (1)-(3) (No change.) [(4) Surplus Lines Agent's Semiannual Tax Report-Form F-SBI-SL-5 (revised 1985). This form is not applicable to surplus lines policies, contracts, or other detailed evidence of coverage, including additions or deletions thereto or cancellation thereof, issued with an effective date on or after July 1, 1988.] (4)
                                                              [(5)] Annual Report of Surplus Lines Agent-Form F-SBI-SL-6. This form is not applicable to surplus lines policies, contracts, or other detailed evidence of coverage, including additions or deletions thereto or cancellation thereof, issued with an effective date on or after January 1, 1988. (5)
                                                                [(6)] Semiannual Tax Report-Form F-SBI-SL-7. This form is promulgated for surplus lines policies, contracts, or other detailed evidence of coverage, including additions or deletions thereto or cancellation thereof, issued with an effective date on or after July 1, 1988. (6)
                                                                  [(7)] Report of Adjuster or Claims Investigator of Policy in an Unauthorized Insurer-ISL Form 015. [(b) Several blank copies of the forms to which subsection (a) of this section refers will be provided by the Surplus Lines Division of the State Board of Insurance, 1110 San Jacinto Boulevard, Austin, Texas 78701-1998, or the Surplus Lines Stamping Office of Texas, P.O. Box 9906, Austin, Texas 78766-9906 to each licensed surplus lines agent or agency. Each surplus lines agent is responsible for making additional copies of the forms by photocopying or printing.] sec.15.13. Surplus Lines Insurance Requests for Information, Examination, and Complaints. [(a) (This subsection does not apply to surplus lines policies and contracts issued or renewed with an effective date on or after July 1, 1988.) The agent shall execute a surplus lines insurance affidavit (Form F-SBI-SL-4) for each insurance contract or renewal to be issued. Such affidavit shall be executed in accordance with the instructions thereon and shall be notarized by a notary public. [(b) (This subsection does not apply to surplus lines policies and contracts issued or renewed with an effective date on or after July 1, 1988.) If the annual premiums paid by the insured for such surplus lines coverage exceed $25,000, the insured may execute the surplus lines insurance affidavit in lieu of the surplus lines agent. [(c) (This subsection does not apply to surplus lines policies and contracts issued or renewed with an effective date on or after July 1, 1988.) The surplus lines insurance affidavit (Form F-SBI-SL-4) shall be filed with the State Board of Insurance on a monthly basis within 30 days after the end of the month in which the insurance was effectuated. It is not required that the agent file an exact copy of the policy issued or other documents otherwise required to be filed pursuant to the Insurance Code, Article 1.14-2, sec.6, if the agent completed the equivalent information section as contained in the surplus lines insurance affidavit.] [(d)] In addition to those documents required to be filed under sec.15.8 and sec.15.23 of this title (relating to Eligibility Requirements of Surplus Lines Insurers and Policy Forms Filings and Stamping Office Fees), a surplus lines agent may be required at the discretion of the commissioner or the stamping office to file any documents necessary to evaluate the eligibility of surplus lines policies, contracts, or other detailed evidences of coverage on any risk placed by the surplus lines agent with any unauthorized insurer; or to evaluate any actions relating to other provisions of the Insurance Code, Article 1.14-2. In the event that the commissioner or the stamping office shall request such other documents, the surplus lines agent shall file the same within 10 days after the receipt of notice of the request for such filings or such later date as may be allowed based upon good cause shown by the surplus lines agent's written request to the commissioner or the stamping office for an extension of filing time. [(e) The books and records of a surplus lines agent held, pursuant to sec.15.17 of this title (relating to General) and the Insurance Code, Article 1.14-2, may be examined at any time by the stamping office to evaluate compliance with sec.sec.15.7, 15.8, 15.13(e), 15.23, and 15.101 of this title (relating to Eligibility Requirements for Surplus Lines Insurance, Eligibility Requirements of Surplus Lines Insurers, Surplus Lines Insurance Requests for Information, Examination, and Complaints, Policy Forms Filings and Stamping Office Fees, and Plan of Operation of the Surplus Lines Stamping Office of Texas) as adopted under the Insurance Code, Article 1.14-2. The results of such examinations by the stamping office shall be incorporated into reports to the commissioner provided under the sections enumerated in this subsection. [(f) Written complaints relating to the procurement of surplus lines coverage that are filed with the stamping office or referred by the State Board of Insurance shall be investigated by the stamping office under this section unless otherwise directed by the State Board of Insurance.] sec.15.14. Surplus Lines Agent's Semiannual Tax Report.
                                                                    [(This section does not apply to surplus lines policies, contracts, or other evidence of coverage, including additions and deletions thereto and cancellation thereof, issued with an effective date on or after July 1, 1988.)] The surplus lines agents shall file semiannually with the Texas Department of Insurance
                                                                      [State Board of Insurance] Form F-SBI-SL-7
                                                                        [F-SBI-SL-5] (surplus lines agent's semiannual tax report) in accordance with sec.15.26 of this title (relating to Semiannual Tax Report). sec.15.15. Reports of Unauthorized Insurance. (a) For the purposes of the Insurance Code, Article 1.14-1 10, requiring the reporting of unauthorized insurance, the term "insurer not authorized to transact such insurance in this state" includes eligible surplus lines insurers as defined under the Insurance Code, Article 1.14-2, 2(b). The reporting of unauthorized insurance shall be accomplished by using ISL Form 015 as provided by sec.15.12(a) (6) of this title (relating to Uniformity of Reporting Forms). Such forms shall be filed with a copy of the loss notice.
                                                                          [Any person investigating or adjusting any loss or claim on a subject of insurance in this state which has been entered into by any insurer not authorized to transact such insurance in this state shall report such policy or contract on ISL Form 015 as provided by s15.12(a)(7) of this title (relating to Uniformity of Reporting Forms) and as required by the Insurance Code, Article 1.14-1. Such form shall be accompanied by a copy of the loss notice.] (b) (No change.) sec.15.19. Contract File.
                                                                            Each surplus lines agent shall keep in his office a file, hereinafter referred to as a contract file which shall contain a full and true record of each individual surplus lines contract, including a copy of the daily report[,] or other evidence of insurance,
                                                                              [if any,] and showing such of the following items as may be applicable: (1) -(2) (No change.) (3) gross premium paid[, if any]; (4)-(11) (No change.) sec.15.21. Minimum Content of Contracts. (a) (No change.) (b) Each document mentioned in subsection (a) of this section shall have stamped conspicuously in ink or affixed upon the first page
                                                                                [it] the following words: "This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as a surplus lines coverage pursuant to the Texas insurance statutes. The Texas Department of Insurance does not audit the finances or review the solvency of the surplus lines insurer providing this coverage, and this insurer is not a member of the property and casualty insurance guaranty association created under the Insurance Code, Article 21.28-C. The Insurance Code, Article 1.14-2, requires payment of ________ (insert appropriate tax rate percentage)
                                                                                  [3.85%] tax on gross premium." sec.15.25. Surplus Lines Insurance Premium Tax Trust Funds. (a)-(c) (No change.) (d) The interest bearing account maintained by the agent for the deposit of tax monies shall be entitled: "Texas Department of Insurance"
                                                                                    ["State Board of Insurance"], as first-named owner; "(name of agent or agency), Trustee," as second-named owner; - - "Tax Trust Account." (e)-(g) (No change.) sec.15.26. Semiannual Tax Report. (a) Each surplus lines agent shall file [semiannually under oath with the State Board of Insurance reports in accordance with this section together with the payment of taxes due on policies, contracts, or other detailed evidences of coverage issued within the reporting period. For the 1988 calendar year the first semiannual report shall be filed on Form F-SBI-SL-5. The second semiannual report of the calendar year 1988 and all] semiannual reports [thereafter shall be filed] under oath
                                                                                      on Form F-SBI-SL-7. Such form and taxes shall be filed within 30 days from the first day of January and July of each year. These reports shall satisfy the annual report requirement under the Insurance Code, Article 1.14-2, sec.16. (b) (No change.) (c) Payment [to the State of Texas] by the surplus lines agent of the gross premium tax receipts shall be made by a check drawn on the demand account maintained by the agent which comprises the premium tax trust fund. The check shall be made payable to the Texas Department of Insurance
                                                                                        [State Board of Insurance]. (d)-(g) (No change.) sec.15.27. Exemption from Minimum Capital and Surplus Requirements. (a) (No change.) (b) Requirements and standards for exemption by commissioner. The commissioner may exempt an unauthorized insurer from the minimum capital and surplus requirements provided by the Insurance Code, Article 1.14-2, sec.8(b), if it is determined, after public hearing, that the exemption is warranted. In determining whether such an exemption is warranted, the commissioner shall consider the evidence filed and presented relating to each of the following. (1) (No change.) (2) Capital and surplus of any parent company. The commissioner shall require a National Association of Insurance Commissioners (NAIC) annual statement, if the parent is an insurer required to file such statement or certified financial statement, if the parent is an alien insurer, or an audit prepared by a certified public accountant on the parent, if not an insurer, and shall require evidence of the amount of financial support to the insurer that would be provided by the parent in the event of impairment. Before granting an exemption, the commissioner shall find that it is not practical for a parent company to contribute sufficient funds to the subsidiary to meet the minimum capital and surplus requirements provided by the Insurance Code, Article 1.14-2, sec.8(b). (3)-(9) (No change.) (c) (No change.) sec.15.101. Plan of Operation of the Surplus Lines Stamping Office of Texas. (a)-(b) (No change.) (c) Directors. (1) Board of directors. The management of all the affairs, property, and business of the stamping office shall be vested in the board of directors, and such board of directors shall consist of no less than [five nor more than] nine persons who serve terms as established in the plan of operation. Four of the members of the board of directors must represent the general public. A public representative may not be: (A) an officer, director or employee of an insurance agency, agent, broker, solicitor, adjustor, or any other business entity regulated by the Texas Department of Insurance; (B) a person required to register with the secretary of state under the Government Code, Chapter 305; or (C) related to a person described by subparagraphs (A) or (B) of this paragraph within the second degree of affinity or consanauinity.
                                                                                          [No less than one-third of the membership of the board of directors shall be drawn from consumers of surplus lines insurance including risk managers and the public counsel of the Division of Consumer Protection appointed under the Insurance Code, Article 1.35A.] The public insurance
                                                                                            counsel shall automatically serve as a public representative
                                                                                              [member]. Consumers and risk managers shall have a minimum of three years of experience in the purchase of commercial insurance coverage. Other members shall be representative of the segments of the insurance industry involved in surplus lines transactions including surplus lines agents, local recording agents, and surplus lines companies. No surplus lines company shall be represented on the board unless such company has presented satisfactory evidence of eligibility to the Texas Department of Insurance
                                                                                                [State Board of Insurance]. (2) (No change.) (3) Terms of Directors
                                                                                                  . [Initial board of directors. The initial board of directors shall consist of three directors appointed for two years, three directors appointed for three years, and three directors appointed for four years. Thereafter, directors] Directors
                                                                                                    will serve for a term of three years. Directors may not serve consecutive full terms, except for the public insurance
                                                                                                      counsel [of the Division of Consumer Protection appointed under the Insurance Code, Article 1.35A]. Directors shall serve until their successors are duly appointed except when removed from office. The minutes of the stamping office shall show the names of the board of directors and the term of office for each. (4)-(12) (No change.) (d)-(i) (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 November 22, 1991. TRD-9114721 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 463-6328 Chapter 19. Agent's Licensing Subchapter K. Continuing Education Requirements 28 TAC sec.sec.19.1001-19.1011 (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 Insurance or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department of Insurance proposes the repeal of ssec.19.1001-19. 1011, concerning continuing education for agents. The repeal of these sections is necessary to provide implementation of legislative revisions to the Insurance Code, Articles 21.07-1, 21.07-3, and 21.14 and to provide clearer and more effective regulation. The proposed repeal of the sections enables the board simultaneously to propose new sections which replace these repealed sections with similar provisions with clearer language in conformance with amended statutory language. Notification appears elsewhere in this issue of the Texas Register
                                                                                                        of proposal of the new sections which would substantially replace these sections proposed for repeal. Judy Whitfield, manager of the continuing education unit, determined that, for the first five-year period the proposed repeals are in effect there will be no fiscal implications for state or local government or small businesses as a result of enforcing or administering the repeals, and there will be no effect on the local employment or local economy. Ms. Whitfield also has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of enforcing the repeals is the conformity of this subchapter to legislative revisions of the Insurance Code, Articles 21.07-1, 21.07-3, and 21.14, and provide more effective regulation of continuing education programs. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals as proposed. Comments on the proposal may be submitted to Judy Whitfield, manager, continuing education section, Mail Code 105-8A, Texas Department of Insurance, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104. The repeals are proposed under the Insurance Code, Article 1.04, which provides the Texas Department of Insurance with the authority to determine policy and rules in accordance with the laws of this state; and under the Insurance Code, Articles 21.07-1, and 21.14, which authorizes the board to certify and have sole jurisdiction over continuing education programs for certain classes of agents. sec.19.1001. Purpose and Scope. sec.19.1002. Definitions. sec.19.1003. Applicability of Requirements. sec.19.1004. Continuing Education Requirements. sec.19.1005. Failure to Comply. sec.19.1006. Approved Courses of Study. sec.19.1007. Licensee's Responsibility for Record Keeping. sec.19.1008. Records and Audit. sec.19.1009. Texas Continuing Education Advisory Council. sec.19.1010. Distribution of Rules and Attachments. sec.19.1011. Forms Adopted by Reference. 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 November 22, 1991. TRD-9114722 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 463-6328 28 TAC sec.sec.19.1001-19.1017 The Texas Department of Insurance proposes new sec.sec.19.1001-19.1017, concerning continuing education for agents under the provisions of the Texas Insurance Code, Articles 21.07-1, 21.07-3, and 21.14. Those agents are referred to in these sections as "licensees". These sections set out the continuing education requirements for licensees, the requirements for approval of courses to be offered by program sponsors and the registration process for program sponsors. The new sections are necessary to better administer the provisions of Article 21.07-1 and Article 21.14, which direct the Texas Department of Insurance to certify the continuing education programs covered by these sections; to implement amendments to Article 21.07-3 made by the 71st Legislature, 1989, which directs managing general agents to obtain continuing education under either the Texas Insurance Code, Article 21.07-1 or Article 21.14; and to implement amendments to the Texas Insurance Code, Article 21.07-1 and Article 21. 14 made by the 72nd Legislature, 1991, which granted sole jurisdiction over these continuing education programs to the Texas Department of Insurance. Section 19.1001 cites appropriate statutory references for the continuing education programs, and describes the purpose of these new sections. Section 19. 1002 defines the terms used in this subchapter. Section 19.1003 sets forth the education requirements for licensees covered by these sections and sec.19.1004 establishes the manner in which such licensees may report credit hours. Section 19.1005 sets out the penalties for failure to comply with continuing education requirements. Section 19.1006 details the procedures for obtaining approval of courses of study, and sec.19.1007 details the requirements which must be met in order for a course to continue to remain on a list of approved courses. Section 19.1008 sets out the expiration of approved courses, the manner in which the course may continue to be placed on a list of approved courses in lieu of expiration, and the procedure for revision of a course. Section 19.1009 describes the procedures for registration of program sponsors. Section 19.1010 requires licensees to preserve copies of certain documents filed at the time of license renewal for four years. Section 19.1011 describes record- keeping requirements and audit procedures. Section 19.1012 sets forth the membership and duties of the advisory council. Section 19.1013 requires distribution of the rules and lists of courses under this subchapter and lists of courses. Section 19.1014 provides for the adoption of forms by reference. The Board has filed copies of such forms with the Office of the Secretary of State, Texas Register Section. Persons wishing to obtain copies of the forms may obtain them from the Continuing Education Unit, Texas Department of Insurance, Agents License Section, Mail Code 105-8A, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104. Section 19.1015 describes the disapproval and decertification procedures. Section 19.1016 describes the hearing on appeal and sec.19.1017 describes the process for removal of decertified courses from a certified course list, and the placement of the decertified course on a list of decertified courses. Judy Whitfield, manager, continuing education unit, has determined that for each year of the first five years the proposed section will be in effect there will be no fiscal implications for state or local government or small business (other than the same implications for all business described following) as a result of enforcing or administering the sections. Ms. Whitfield 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 is better trained agents who can be of greater assistance to consumers of the state in meeting their insurance needs. Anticipated economic costs to providers who are required to comply with these sections through this agency for the processing of the necessary forms is approximately $10-$20 per course. The cost per year would depend on the number of courses filed. The fees previously paid to the Texas Education Agency will no longer be required, resulting in a saving to providers who had been certified or exempted from coverage by the Texas Education Agency. For each year of the first five years the sections are in effect, the costs for agents unable to obtain free continuing education are anticipated to be $150-$200 per year. Comments on the proposal may be submitted to Judy Whitfield, Manager, Continuing Education Unit, Texas Department of Insurance, Agents License Section, Mail Code 105-8A, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104. The new sections are proposed under the Texas Insurance Code, Article 1.04, which provides general rule-making authority for the board; and the Texas Insurance Code, Articles 21.07-1, s3A, 21.07-3, sec.6A; and 21.14, sec.5b, which direct the Texas Department of Insurance to establish a procedure for certifying continuing education programs for certain classes of insurance agents. sec.19.1001. Purpose and Scope. The purpose of this subchapter is to set forth a procedure for certifying continuing education programs for agents licensed under the Texas Insurance Code, Articles 21.07-1, 21.07-3, and 21.14, and to establish requirements for implementation of the continuing education programs mandated in the Texas Insurance Code, Articles 21.07-1, sec.3A; 21.07-3, s6A; and 21.14, sec.5b. sec.19.1002. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Advisory council -The advisory council for the Continuing Education Program for Agents as described in sec.19.1012 of this title (relating to Advisory Council). Approved course of study-A course which the Continuing Education Unit of the Agents License Section of the Texas Department of Insurance has placed on a list of certified courses and which has received approval under sec.19.1006 of this title (relating to Approval of Courses), and which has not been decertified. Board-The State Board of Insurance. Class hours-Hours of classroom instruction. Continuing education unit-Persons employed in the Continuing Education Unit of the Agents License Section, License and Investigation Program of the Texas Department of Insurance. Credit hours-Hours of instruction for which continuing education credit may be obtained under sec.19.1006 of this title (relating to Approval of Courses). Decertification-The process by which it is determined that a course will be removed from a list of certified courses for noncompliance with these rules. Department-The Texas Department of Insurance. Disapproval-The process by which it is determined that a course will not be placed on a list of certified courses because it fails to meet the requirements of these rules. Insurance service representative-A person licensed under the Texas Insurance Code, Article 21.14 as an insurance service representative. Licensee-Any holder of an individual license under the authority of the Texas Insurance Code, Articles 21.07-1, 21.07-3, or 21.14. Life insurance agent-A person licensed under the Texas Insurance Code, Article 21.07-1. Local recording agent-A person licensed under the Texas Insurance Code, Article 21.14 as a local recording agent. Managing general agent-A person licensed under Article 21. 07-3. Person-An individual, a corporation, a partnership, an association, a joint stock company, a trust, or unincorporated organization, any similar entity or any combination of the foregoing acting in concert. Program-The offering of a continuing education course or courses by a program sponsor. Program sponsor -A person seeking to offer, or offering an approved course(s) of study. Solicitor-A person licensed under the Texas Insurance Code, Article 21.14 as a solicitor. sec.19.1003. Applicability of Requirements. (a) The continuing education requirements imposed under this section and sec.19.1004 of this title (relating to Reporting of Continuing Education Credit) shall apply to all licensees as defined in this subchapter who are Texas residents and who hold individual licenses from and after January 1, 1988, except the following: (1) licensees who had been licensed for at least 15 years on September 1, 1987; (2) licensees who had been licensed for at least 16 years on September 1, 1988; (3) licensees who had been licensed for at least 17 years on September 1, 1989; (4) licensees who had been licensed for at least 18 years on September 1, 1990; (5) licensees who had been licensed for at least 19 years on September 1, 1991; and (6) licensees who have been licensed at least 20 years on and after September 1, 1992. (b) A licensee seeking an exemption who has not filed previously for an exemption shall furnish the following information to the Continuing Education Unit: (1) licensee's full name and address; (2) Texas Department of Insurance file number; (3) Texas license number(s); (4) license number(s) from any other state if the licensee is seeking to count service with that state in computing exemption requirements; and (5) number of years licensed under each license. (c) Continuing education requirements shall not apply to nonresident licensees who are subject to continuing education requirements in their home state, provided that state recognizes reciprocity with Texas continuing education requirements. (d) The continuing education requirements for the different classes of licensees are as follows. (1) The initial requirement for continuing education of a managing general agent shall be determined in accordance with the provisions of subparagraphs (A), (B), and (C) of this paragraph. (A) If the renewal date of the managing general agent license is between September 1, 1990, and December 31, 1990, inclusive, the number of credit hours of continuing education required before the renewal is five. (B) If the renewal date of the managing general agent license is after December 31, 1990, but before August 31, 1992, the number of credit hours of continuing education required for the next renewal period and for each subsequent renewal period is 15. (C) All managing general agent licenses expiring from and after September 1, 1992, shall have a continuing education requirement of 30 credit hours. (2) All licenses for local recording agents, solicitors (including insurance service representatives), or life insurance agents, have a continuing education requirement of 30 credit hours per two-year renewal period unless otherwise exempted; however, a Texas local recording agent shall only be required to complete 15 credit hours in the two years prior to the first renewal of the local recording agent's license; provided that the local recording agent has spent the first year of that period as a temporary local recording agent, and the local recording agent does not hold a license as a life insurance agent. (3) All individual licensees who hold licenses as local recording agents or solicitors (including insurance service representatives) and as life insurance agents are not required to complete more than 15 credit hours of continuing education per year. The 15 credit hours of continuing education may be taken from the list of courses approved for either license. (4) For solicitors (including insurance service representatives) for local recording agents the continuing education requirements are as follows. (A) The provisions of clauses (i)-(iv) of this subparagraph apply to a solicitor's original license. (i) If there are six or fewer months between the issue date of the solicitor's license and the renewal date of the solicitor's license, the solicitor is not required to complete continuing education credit during the initial period. (ii) If there are more than six months but not more than 12 months between the issue date of the solicitor's license and the renewal date of the license, the solicitor must successfully complete 10 continuing education credit hours for that time period. (iii) If there are more than 12 months but not more than 18 months between the issue date of the solicitor's license and the renewal date of the license, the solicitor must successfully complete 20 continuing education credit hours. (iv) If there are more than 18 months but not more than 24 months between the issue date of the solicitor's license and the renewal date of the license, the solicitor must successfully complete 30 continuing education credit hours for that time period. (B) When a solicitor changes appointments from one local recording agent to another, continuing education requirements for that solicitor must be calculated in accordance with subparagraph (A) of this paragraph. Proof of compliance must be furnished in writing to the Agents License Section of the Texas Department of Insurance upon request. sec.19.1004. Reporting of Continuing Education Credit. (a) The licensee shall furnish to the department at the time of the license renewal, Licensee's Continuing Education Summary Report, with copies of the completed Continuing Education Certificates of Completion. (b) A particular course may not be used by a licensee for continuing education credit for a specific license more than once in any one reporting period for that license. (c) A licensee who teaches an approved course may receive 100% of the credit hours toward meeting the continuing education requirement, but this credit may not be used more than once in any one reporting period. A Continuing Education Certificate of Completion indicating that the licensee taught the course should be furnished to the licensee. (d) Licensees who successfully complete approved courses of study of the national examination programs listed in sec.19.1006 of this title (relating to Approval of Courses) and successfully pass the examination for which the course was taken, may only receive credit for either the course or the examination. The licensee may not receive credit for both during any one renewal period. The licensee must make a choice of which continuing education hours to submit for credit. (e) Licensees will not receive any credit unless all requirements for completion of the course are met. sec.19.1005. Penalties for Licensee's Failure to Comply.
                                                                                                          A licensee must provide satisfactory evidence of successful completion of the required credit hours of continuing education at the time of license renewal, in the absence of a valid exemption. Licensees who do not comply with the continuing education requirement are subject to disciplinary action in accordance with the Texas Insurance Code, Article 1.10, sec.7 and Articles 21. 07-1, sec.12; 21.07-3, s12; and/or 21.14, sec.16. Failure to meet the continuing education requirements will be grounds for denial of any subsequent license application. sec.19.1006. Approval of Courses. (a) An approved course of study is one that has been submitted to the department for approval on the Request for Approval of Continuing Education Course form, has met all the requirements of this section, has been reviewed and approved by the Continuing Education Unit, and has been placed on a list of certified courses. (b) National examination programs include, but are not limited to, Accredited Adviser in Insurance (AAI), Associate in Automation Management (AAM), Associate in Claims (AIC), Associate in Loss Control Management (ALCM), Associate in Marine Insurance Management (AMIM), Associate in Premium Auditing (APA), Associate in Risk Management (ARM), Associate in Underwriting (AU), Certified Employee Benefit Specialist Program (CEBS), Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Certified Insurance Counselor (CIC), Chartered Life Underwriter (CLU), Chartered Property Casualty Underwriter (CPCU), Fellow Life Management Institute (FLMI), Life Underwriters Training Council (LUTC), Program in General Insurance (INS), Registered Health Underwriter (RHU), and successful completion of the examination with a passing score for any part of these programs is approved for 15 hours of continuing education credit without the necessity for further action on the part of the Continuing Education Unit or program sponsor. Further, any insurance course that is part of the degree curriculum of an accredited college or university shall be awarded 15 hours of continuing education credit for each semester hour passed. (c) The list of certified courses shall designate whether the courses require class attendance or not, and each type of license to which the course hours may be applied. (d) To be placed on the list of approved courses, a course of study shall meet the following requirements, which apply to all courses, whether lecture, seminar, correspondence, video, audio, computer-based, or any other method of presentation. (1) The Request for Approval of Continuing Education Course shall be filed with the Continuing Education Unit at least 30 calendar days in advance of the beginning date of the course. No course will be approved if the Request for Approval of Continuing Education Course is received less than 30 calendar days in advance of the beginning date of the course. (2) The Request for Approval of Continuing Education Course shall be accompanied by an outline containing a complete description of the contents of the course and indicating that the contents of the course meet the requirements of this subchapter. The outline shall list individually the topics covered in the course. A summary of the instruction given and the material covered shall be given for each individual topic. The time allotted for each topic shall be shown. A list of topics without other details is not acceptable. (3) The Request for Approval of Continuing Education Course shall be accompanied by a statement indicating the purpose, goals, and objective of the course. This statement shall also indicate the level of knowledge to be gained by the participant from the course. (4) The Request for Approval of Continuing Education Course must be accompanied by all workbooks and examinations used for the course. (5) The content of the course must be designed to contribute to the professional competence of the licensee and to enhance a licensee's knowledge and understanding of insurance principles and coverages; applicable laws; rules and regulations promulgated by the board; recent and prospective changes in coverages, law, regulation, and practice; management of the licensee's insurance business; the duties and responsibilities of the licensee; or consumer protection. (6) All courses using solely audio, video, computer-based instructional methods, or any combination of such instructional methods, shall have a workbook or examination that must be completed by the licensee after receiving the course instruction. (e) The number of credit hours of approvable topics in the outline will be determined as follows: (1) for classroom instruction, the hours will be set on a credit hour per approved class hour basis. The program sponsor must indicate the hours per approvable topic in the outline so that the total number of credit hours of approvable topics can be determined by the Continuing Education Unit. A course may be approved for a lesser number of hours than assigned by the program sponsor. A class hour must contain at least 50 minutes of instruction; (2) for a correspondence course, eight single-spaced, typed pages will be considered the equivalent of one hour of classroom instruction. (f) The effective date of the approval is the date noted on the letter sent to the program sponsor stating that the course has been approved. (g) The following types of courses shall not be considered for approval: (1) courses teaching accounting or other general business skills, speed reading, sales or selling, or computer use unless such courses teach specific insurance- related software use, or accounting, taxation, or other business matters which are specifically related to insurance; (2) courses in motivation, goal-setting, time management, or communication; (3) meetings held in conjunction with the regular business of the licensee; or (4) courses relating to the product of a specific company unless: (A) such course is provided by an insurance company or agency and is non-sales related; (B) credit is given only to that entity's appointed licensed agents, solicitors (including insurance service representation), and employees; (C) no charge is made for the training; and (D) the course meets all the criteria for approved courses contained in this section; (5) courses containing both classroom and correspondence course elements; (6) courses which do not meet all the requirements set forth in subsection (d) of this section. (h) All promotional material used by the program sponsor must meet the requirements set forth in sec.19.1007 of this title (relating to Continuous Course Requirements). (i) A Request for Approval of Continuing Education Course is incomplete if it does not contain all the information required in this subchapter. If the Request for Approval of Continuing Education Course is not completed within 20 calendar days of initial receipt, the course may be disapproved. No course will be approved after the date the course is given. (j) If the Continuing Education Unit has not either disapproved the course or requested correction of deficiencies or completion of additional information within 30 days of the date on which the Continuing Education Unit received the course, the course shall be considered approved and will be placed on the list of approved courses. A formal letter of approval will be mailed to the program sponsor by the Continuing Education Unit. sec.19.1007. Continuous Course Requirements. In order for a course to remain on a list of approved courses, the program sponsor must comply with the following requirements: (1) maintain detailed records of attendance records and promotional material for a minimum of four years. The attendance records must list the name, address, and phone number of each licensee and the Texas Department of Insurance file number and type of license for licensees; the name of the course taken, the course presentation date, and the number of credit hours earned; the licensee's attendance which must be verifiable from attendance records of the course; and the licensee's test grade(s) or other information to verify successful completion of the course by the licensee; (2) maintain course evaluation forms for a period of one year; (3) make the records listed in paragraphs (1) and (2) of this subsection available to the Texas Department of Insurance upon request; (4) cooperate with course monitoring and auditing by the Texas Department of Insurance referenced in sec.19.1011 of this title (relating to Records and Audit) and provide all records and information requested in connection with such functions; (5) provide licensees with a blank Licensee's continuing education Summary Report and a Continuing Education Certificate of Completion within 10 days of the date on which all requirements for the completion have been met. The Continuing Education Certificate of Completion shall include the following information: the licensee's full name, address, Texas Department of Insurance file number and type of license; the course program sponsor's name and the Texas Department of Insurance course number; the date of successful completion; the number of credit hours for the course; and the signature of the official(s) of the program sponsor designated in the Request for Approval of Continuing Education Course; (6) meet on a continuing basis all other requirements pertaining to courses in sec.19.1006 of this title (relating to Approval of Courses); (7) all promotional material must list all fees charged; indicate the number of approved credit hours of the course; and list the name of the course and the type of license for which it is approved; (8) furnish the Continuing Education Unit with any repeat course presentation dates, and identify each approved course name and number, the course presentation location and physical address, and the name of the instructor for the approved course at least 21 calendar days prior to the starting date of the repeat course date; (9) furnish the Continuing Education Unit with a new Request for Approval of Continuing Education course, and all attachments, for any revision in course content at least 30 calendar days in advance of the beginning date of the course; (10) provide reasonable accommodations for licensees with disabilities; (11) furnish licensees with a written copy of the most recently approved course outline on file with the Continuing Education Unit of the Agents License Section of the Texas Department of Insurance prior to the beginning of the course. This outline shall bear the statement "Report any deviation from this outline to the Continuing Education Unit, Texas Department of Insurance, Agents License Section, Mail Code 105-8A, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104; telephone (512) 322-3503;" (12) furnish each licensee with a written statement of all the requirements the licensee must meet in order to receive credit for a course at the time a licensee pays for a course, or no later than the beginning date and time of the course. This statement shall not be at variance with the defined method for successful completion listed on the Request for Approval of Continuing Education Course. This statement shall include the wording: "Report any deviation from these requirements to the Continuing Education Unit, Texas Department of Insurance, Agents License Section, Mail Code 105-8A, 333 Guadalupe Street, Austin, Texas 78714-9104; telephone (512) 322-3503;" (13) furnish the licensee with all written material needed to successfully complete the course at the time a licensee pays for a course, or no later than the beginning date and time of the course; (14) make provision for the answering of licensee questions in any lecture or seminar course; (15) require that a licensee attend a minimum of 90% of a lecture or seminar for which attendance is the only requirement; (16) require a licensee to successfully complete a formal final examination for any correspondence course; (17) distribute the course evaluation form to all licensees taking the course, collect their completed forms at the end of the course, and maintain them as described in paragraph (2) of this subsection; (18) be responsible for monitoring materials, security, and presentation of examinations. The program sponsor must allow auditing of course presentations and examinations, review of materials and written examination security, and monitoring of procedures by the Texas Department of Insurance, and must submit any written materials and records to the department upon request; (19) be responsible for: (A) compliance with these rules by their instructors, staff, or agents; (B) ensuring that a person with whom they contract to administer correspondence courses complies with these rules; and (C) maintaining documentation of instructor qualifications for two years. Instructors should have at least three years experience in the course subject matter, either as an instructor or working in the relevant field. Such documentation shall be available to the Texas Department of Insurance upon request. sec.19.1008. Revisions and Expiration of Approvals. (a) For courses approved on and after the effective date of these rules, approval of a course is valid for no more than three years from the date of approval reflected on the letter advising the program sponsor of the course approval. A course will be removed from a list of approved courses unless: (1) the program sponsor has submitted an updated course description indicating the changes to the course content made by the program's sponsor to reflect changes in the laws, regulation, or policies relevant to the course content; or (2) the program sponsor has submitted in writing reasons why the course content does not need to be updated. (b) Revisions of course content may be submitted by program sponsors at any time. Revised courses will receive a new course number, and must meet the requirements of sec.19.1007(9) of this title (relating to Continuous Course Requirements). sec.19.1009. Registration of Program Sponsors. (a) All program sponsors shall file a one-time Registration Form with the Continuing Education Unit. A form for this purpose may be obtained from the Continuing Education Unit at the address listed in sec.19.1007(11) of this title (relating to Continuous Course Requirements). The program sponsor shall send written updates to the Continuing Education Unit when there are any changes to the information contained in this form. (b) Those program sponsors who offer courses at more than one location shall provide written notice to the Continuing Education Unit of one central location to which information regarding continuing education courses may be addressed. sec.19.1010. Licensee's Responsibility for Record Keeping. Licensees are responsible for maintaining their own continuing education records. The accuracy of a licensee's records is subject to verification at any time, as more particularly set forth in sec.19.1011 of this title (relating to Records and Audit). Copies of the documents listed in paragraphs (1) and (2) shall be maintained for four years. The documents to be maintained are: (1) copies of all Continuing Education Certificates of Completion received from program sponsors as evidence of course completion; and (2) copies of all Licensee's Continuing Education Summary Reports. sec.19.1011. Records and Audit. All continuing education reports and records submitted or maintained for the purpose of licensure or continued course approval are subject to audit or review by the department. sec.19.1012. Advisory Council. (a) The board shall create an advisory council to furnish the board with information and assistance in the conduct of the continuing education program for agents. (b) The council shall be appointed by the board for a period of not more than two years, and its members serve at the board's pleasure. The board may, from time to time, make additional appointments to replace members who have resigned, are deceased, no longer serve at the board's pleasure, or have become ineligible for membership because the member no longer represents the element of the composition of the council from which such person was selected. (c) The council shall consist of nine members. Four of the members must be representatives of the general public. (d) The council shall meet at least semi-annually. (e) The council shall elect a chair who may, in the chair's sole discretion, divide the council into subcommittees. (f) The council will serve without pay, but reasonable travel expenses will be reimbursed. sec.19.1013. Distribution of Rules and Lists of Courses. (a) A copy of this subchapter as promulgated by the State Board of Insurance shall be given to any interested person upon request made to the Continuing Education Unit. (b) A list of certified courses offered to all licensees is available at the Texas Department of Insurance. (c) The Continuing Education Unit may be contacted at the address shown in sec.19.1007(11) of this title (relating to Continuous Course Requirements). sec.19.1014. Forms Adopted by Reference. The State Board of Insurance adopts by reference certain forms to be used in conjunction with the administration of this subchapter. These forms are published by the Texas Department of Insurance and may be obtained from the Continuing Education Unit at the address shown in sec.19.1007(11) of this title (relating to Continuous Course Requirements). Licensees and program sponsors shall use the forms required by the provisions of this subchapter. These forms must be used for the purposes addressed in this subchapter and may not be modified. The forms adopted by reference are specifically identified as follows: (1) Continuing Education Certificate of Completion; (2) Request for Approval of Continuing Education Course; (3) Licensee's Continuing Education Summary Report; and (4) Registration Form. sec.19.1015. Disapproval or Decertification Procedures. (a) The following procedures will apply to a disapproval, in whole or in part, and a decertification of a course. (1) If the Continuing Education Unit determines that a course must be disapproved in whole or in part, or decertified for failure to comply with these rules, the program sponsor will be notified in writing of this proposed disapproval or decertification (referred to in this section as the proposal) and the reasons for it. (2) The program sponsor may, within 30 calendar days, seek an informal review of the proposal by writing a letter to the deputy commissioner for licensing, setting forth the reasons why the program sponsor contends that the proposal should not be upheld. If the program sponsor does not seek such a review within 30 calendar days, the program sponsor will be sent the formal notification of disapproval or decertification described in paragraph (6) of this subsection by certified mail, return receipt requested, and the disapproval or decertification shall be effective 20 days after the date of the letter of notification. (3) If the program sponsor requests a review, the Continuing Education Unit will be advised of the request for review by the office of the deputy commissioner for licensing. The Continuing Education Unit will forward the course file to the deputy commissioner. (4) The deputy commissioner will make a decision to either uphold or deny the proposal based upon the file and the written submission of the program sponsor. (5) If the proposal is denied, the file will be returned to the Continuing Education Unit, and the course will be placed or will remain on a list of approved courses. (6) If the proposal is upheld, the file will be returned to the Continuing Education Unit and the program sponsor will be formally notified of the disapproval of the course in whole or in part, or the decertification of the course, by letter sent by certified mail, return receipt requested. The letter shall state the reasons and authority for the disapproval or decertification. The disapproval or decertification shall be effective 20 days after the date of the letter of notification. (7) If the program sponsor wishes to appeal the deputy commissioner's decision, the appeal must be made within 15 days of date of the letter notifying the program sponsor of the disapproval or decertification, by filing the pleadings required by Chapter 1, Subchapter A of this title (relating to Rules of Practice and Procedure). sec.19.1016. Hearing on Appeal. The hearing on the appeal of the disapproval or decertification will be held in accordance with the provisions of the Administrative Procedure and Texas Register Act, Texas Civil Statutes, Article 6252-13(a) and Chapter 1, Subchapter A of this title (relating to Rules of Practice and Procedure). sec.19.1017. Removal of Decertified Courses from Certified Course List. After final action, any decertified course shall be removed from a list of certified courses and placed on a list of Courses Decertified for Non-compliance. That list shall contain the title of the courses which have been decertified, the date of decertification and the program sponsor's name and number. 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 November 22, 1991. TRD-9114723 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 463-6328 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part I. Texas Department of Public Safety Chapter 3. Traffic Law Enforcement Traffic Supervision 37 TAC sec.3.59 The Texas Department of Public Safety proposes an amendment to sec.3.59, concerning regulations governing transportation of hazardous materials. Amendments in subsections (a) and (b) adds 49 Code of Federal Regulations, Chapter 1, Part 180, which establishes minimum specifications for cargo tanks used in the transportation of hazardous materials in Texas. Melvin C. Peeples, assistant chief of fiscal affairs, 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. Lester Mills, captain, traffic law enforcement, 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 uniformity and compliance with the federal hazardous material regulations which seek to increase the safety to the public and the environment from the accidental discharge of hazardous materials being transported on the public highways of this state. The effect on small businesses will be dictated by the amount of equipment and labor needed to retrofit vehicles to the minimum qualifications for cargo tanks and maintain at that level. The cost of compliance for small businesses would be directly proportional to that of the largest businesses. The costs are based on a per vehicle basis and are dependent on the amount of repairs needed. The anticipated economic cost to persons who are required to comply with the section as proposed will be the estimated cost of retrofitting each cargo tank until compliance is met: $4,000 for fiscal year (fy) 1992; $4, 160 for fy 1993; $4,326 for fy 1994; $4,499 for fy 1995; and $4,679 for fy 1996; and estimated cost of recertifying each tank on an annual basis: $1,500 for fy 1992; $1,560 for fy 1993; $1,622 for fy 1994; $1,687 for fy 1995; and $1,754 for fy 1996. Comments on the proposal may be submitted to John C. West, Jr., Texas Department of Public Safety, Box 4087, Austin, Texas 78773-0001, (512) 465-2000. The amendment is proposed under Texas Civil Statutes, which provide the director of the Department of Public Safety with the authority to adopt such regulations as may be deemed necessary for the safe transportation of hazardous materials. sec.3.59. Regulations Governing Transportation of Hazardous Materials. (a) Federal regulations adopted. On September 28, 1973, the director of the Texas Department of Public Safety adopted the Federal Hazardous Materials Regulations, Parts 171-173, 177, and 178, by reference including all amendments and interpretations thereto. The department further adopts Part 180 by reference including all amendments and interpretations thereto. (b) Explanations and exceptions. (1)-(2) (No change.) (3) All references in 49 Code of Federal Regulations, Chapter 1, Parts 171-173, 177, [and] 178, and 180
                                                                                                            and to other modes of transportation, other than by motor vehicles operated on streets and highways of this state, will be excluded and not adopted by this department. (4)-(5) (No change.) (6) Regulations adopted by this department, other than placarding, shipping papers, fire extinguisher, and the federal motor carrier safety regulations requirements do not apply to cargo tanks having a capacity of 3,000 gallons or less and used to transport flammable liquids, provided the tank was manufactured or assembled prior to January 1, 1982. All cargo tanks having a 3, 000 gallon capacity or less and used to transport flammable liquids manufactured or assembled on or after January 1, 1982, will be required to meet all specifications and regulations for such tanks as required in 49 Code of Federal Regulations, Chapter 1, Parts 171-173, 177, [and] 178, and 180
                                                                                                              . (7)-(9) (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 November 18, 1991. TRD-9114616 James R. Wilson Director Texas Department of Public Safety Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 465-2000 Part XI. Texas Juvenile Probation Commission Chapter 341. Texas Juvenile Probation Commission 37 TAC sec.341.7 The Texas Juvenile Probation Commission proposes an amendment to sec.341.7, concerning advisory councils for juvenile boards. The purpose of the amendment is to delete from the rule a requirement that has been enacted in state law since adoption of the rule. Steve Bonnell, deputy 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. Bonnell 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 elimination of duplication between the rule and state law, and the clarification that state law and not the agency rule, requires that a juvenile board appoint an advisory committee. 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 Rae Tregilgas, Executive Secretary, Texas Juvenile Probation Commission, P.O. Box 13547, Austin, Texas 78711-3547. The amendment is proposed under the Texas Human Resources Code, sec.141.042, which provides the Texas Juvenile Probation Commission with the authority to adopt rules for the operation of juvenile boards that are necessary to provide adequate and effective probation services. sec.341.7. Local Juvenile Boards-Advisory Councils. (a)-(b) (No change.) [(c) Advisory council appointment. The juvenile board should appoint an advisory council if so mandated by its statutory authority.] (c)
                                                                                                                [(d)] Advisory council duties. The advisory council will advise the juvenile board of citizen reaction to all juvenile programs and serve as a liaison between the juvenile board and the community at large. The juvenile board has the discretion as to whether or not to implement any programs or recommendations of its advisory council. 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 November 19, 1991. TRD-9114633 Bernard Licarione, Ph.D. Executive Director Texas Juvenile Probation Commission Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 443-2001 37 TAC sec.341.23 The Texas Juvenile Probation Commission proposes an amendment to sec.341.23, concerning memorandum of understanding regarding service delivery to dysfunctional families. The amendment is adopted to update the publication date of the memorandum of understanding. Steve Bonnell, deputy 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. Bonnell also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that dysfunctional families are ensured that they will continue receiving coordinated services when the agencies have sufficient funding to enter into joint contracts. 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 Rae Tregilgas, Executive Secretary, Texas Juvenile Probation Commission, P.O. Box 13547, Austin, Texas 78711-3547. The amendment is proposed under the Texas Human Resources Code, sec.71.011(a), which provides the Texas Juvenile Probation Commission with the authority to enter into a memorandum of understanding with the Texas Department of Human Services and the Texas Youth Commission, regarding service delivery to dysfunctional families. sec.341.23. Memorandum of Understanding Regarding Service Delivery to Dysfunctional Families. (a) (No change.) (b) The memorandum of understanding was published in the Texas Register
                                                                                                                  by the Texas Department of Human Services on October 29, 1991 (16 TexReg 6126)
                                                                                                                    [July 24, 1990 (15 TexReg 4198 and 4199)]. Copies of the memorandum of understanding are available from the Texas Juvenile Probation Commission. 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 November 19, 1991. TRD-9114632 Bernard Licarione, Ph.D. Executive Director Texas Juvenile Probation Commission Earliest possible date of adoption: December 30, 1991 For further information, please call: (512) 443-2001 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 11. Food Distribution and Processing Food Distribution Program 40 TAC sec.11.107 The Texas Department of Human Services (DHS) proposes an amendment to sec.11. 107, concerning warehousing and distribution of donated foods. The amendment clarifies the rule to state that DHS solicits contracts for handling, storing, and distributing commodities by Request for Proposal according to state and federal procurement standards. Burton F. Raiford, interim commissioner, has determined that for the first five- year period the proposed amendment will be in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the amendment. Mr. Raiford also has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the amendment will be inclusion of the procedure in the rule for soliciting contracts. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed section. Questions about the content of the proposal may be directed to Marianne McDonald at (512) 450-3437 in DHS's Nutrition and Emergency Services Section. Comments on the proposal may be submitted to Nancy Murphy, Agency Liaison, Policy and Document Support-331, 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 amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 33, which provides the department with the authority to administer public and nutritional assistance programs. sec.11.107. Warehousing and Distribution of Donated Foods.
                                                                                                                      [DHS provides facilities for handling, storage, and distribution of donated foods according to 7 Code of Federal Regulations sec.250.14(b)-(f).] (a) DHS handles, stores, and distributes donated foods according to 7 Code of Federal Regulations, sec.250.14. (b) When DHS contracts for the handling, storage, and distribution of donated foods, DHS will solicit by Request for Proposal (RFP) and award contracts according to 7 Code of Federal Regulations sec.250.14(d). DHS requests RFPs in accordance with state and federal procurement standards. 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 November 22, 1991. TRD-9114700 Nancy Murphy Agency liaison, Policy and Document Support Texas Department of Human Services Proposed date of adoption: February 1, 1992 For further information, please call: (512) 450-3765 Chapter 27. Intermediate Care Facilities for the Mentally Retarded (ICF-MR) Subchapter D. Reimbursement Methodology 40 TAC sec.27.409 The Texas Department of Human Services (DHS) proposes an amendment to sec.27. 409, concerning unallowable costs for Medicaid cost reporting purposes for intermediate care facilities for the mentally retarded. The amendment adds as an unallowable cost any expenses, and corresponding revenues, that are reimbursed directly through Medicaid voucher payment systems which are outside of the per diem rate payment system. Burton F. Raiford, interim commissioner, 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. 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 a better understanding of the unallowable costs of the Medicaid reimbursement methodology for intermediate care facilities for the mentally retarded. 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. Questions about the content of this proposal may be directed to Glenn Hart at (512) 450-4049 in DHS's Provider Reimbursement Department. Comments on the proposal may be submitted to Nancy Murphy, Agency Liaison, Policy and Document Support-330, 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 amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority to administer public and medical assistance programs. sec.27.409. List of Unallowable Costs. The following list of unallowable costs is not comprehensive, but rather serves as a general guide and clarifies certain key expense areas. The absence of a particular cost does not necessarily mean that it is an allowable cost. Except where specific exceptions are noted, the allowability of all costs is subject to the general principles specified in sec.27.405 of this title (relating to Allowable and Unallowable Costs): (1)-(35) (No change.) (36) any expenses, and corresponding revenues, that are reimbursed directly through Medicaid voucher payment systems which are outside of the per diem rate payment system. 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 November 22, 1991. TRD-9114701 Nancy Murphy Agency liaison, Policy and Document Support Texas Department of Human Services Proposed date of adoption: February 1, 1992 For further information, please call: (512) 450-3765 Chapter 49. Child Protective Services Subchapter C. Eligibility for Child Protective Services 40 TAC sec.49.320 The Texas Department of Human Services proposes an amendment to sec.49.320, concerning foster care assistance eligibility requirements, in its Child Protective Services chapter. The purpose of the amendment is to include court proceedings requirements in the department's rules. Burton F. Raiford, interim commissioner, 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. 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 the promotion of high-quality medical care for foster children. The section will promote good medical care by ensuring that qualified children in medical facilities become eligible for foster care assistance as soon as possible after their admission to the facilities. 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 Susan Klickman (512) 450-3302 in the Protective Services for Families and Children Department. Comments on the proposal may be submitted to Nancy Murphy, Policy and Document Support-315, 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 amendment is proposed under the Human Resources Code, Title 2, Chapter 22, which authorizes the department to administer public assistance programs, and Chapter 41, which authorizes the department to enforce laws for the protection of children. The amendments are 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.49.320. Eligibility in Medical Facilities Before Placement. (a) (No change.) (b) If court proceedings are initiated during the month of the child's admission to the medical facility, the child's eligibility for foster care assistance commences on the date of admission. If court proceedings are not initiated until the following month, the child's eligibility commences on the first day of the month in which the proceedings are initiated. 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 November 22, 1991. TRD-9114702 Nancy Murphy Agency liaison, Policy and Document Support Texas Department of Human Services Proposed date of adoption: January 15, 1992 For further information, please call: (512) 450-3765 Texas Department 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 State Board of Insurance, at a board meeting scheduled for December 11, 1991, at 2 p.m., in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, will consider a filing by CUMIS Insurance Society, Inc. of revised rates and rules for the Credit Union Discovery Bond Program. The filing submitted by CUMIS Insurance Society, Inc. proposes an overall increase of 7.8% in the rates for the basic bond. The following rate changes have been proposed for the optional coverages available under the bond program: a 19.25% decrease in the rate for the IRA Coverage Endorsement; a 32.25% increase in the rate for the Share Draft Coverage Endorsement; a 32.25% increase in the rate for the Ligation Coverage Endorsement; and a 19.25% decrease in the rate for the Consumer Legislation Endorsement. Additional changes contained in this filing that impact the rates are an increase in the Lack of Faithful Performance multiplier from 1.24 to 1.30, a .8% increase in the increase limit factors for the basic bond, a revised rule concerning the location charge applicable to branch offices, and the addition of credit factors for the minimum deductible under the specific insuring clauses. Copies of the full text of the revised rates and rules for the Credit Union Discovery Bond Program 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 proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on November 22, 1991. TRD-9114719 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance For further information, please call: (512) 463-6328