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 1. ADMINISTRATION
Part V. General Services Commission
Chapter 121. Telecommunications Services Division
Telecommunications
1 TAC sec.121.10
The General Services Commission proposes new sec.121.10, concerning the usage of 
TEX-AN long distance service by students at institutions of higher education, as 
defined by the Education Code, sec.61.003.
Carl Stringfellow, director of telecommunications services, has determined that 
for the first five-year period the proposed 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. Stringfellow, also has determined that for each year of the first five years 
the proposed section is in effect the public benefit will be that university 
students will benefit from the discounted TEX-AN long distance rates. There will 
be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the section.
Comments on the proposal may be submitted to Judith Monaco Porras, General 
Counsel, General Services Commission, P.O. Box 13047, Austin, Texas 78711-3047. 
Comments must be received no later than 30 days from the date of publication of 
the proposal in the Texas Register.
The new section is proposed under Texas Civil Statutes, Article 601b, sec.10. 
071, which provide the General Services Commission with the authority to 
promulgate rules to accomplish the purpose of Article 10.
sec.121.10. TEX-AN Usage for Students at Institutions of Higher Education.
(a) This sec.121.10 of this title (relating to TEX-AN usage for students at 
institutions of Higher Education) applies to all institutions of higher 
education, as defined in the Education Code, sec.61.003, referred to herein as 
"institutions."
(b) Institutions may offer TEX-AN long distance service to students who reside 
in housing served by the institution's switch.
(c) The commission shall bill the institution actual costs for TEX-AN long 
distance service for students monthly in one lump sum. The institution shall 
include the student portion of the bill in its regular monthly payment to the 
commission.
(d) The institution electing to extend TEX-AN long distance to students is 
responsible for all payments directly to the commission, regardless of whether 
it is able to collect the students' portion of the bill. The institution shall 
be responsible for billing and collecting from each student. The commission is 
not responsible for helping the institution recover payments for TEX-AN long 
distance from students, and any losses from uncollected student accounts shall 
be the responsibility of the institution.
(e) The commission may, at its discretion, request that the institution limit 
the hours of access for students using the TEX-AN network if it finds that the 
network cannot accommodate the student traffic.
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 26, 1991.
TRD-9114886
Judith Monaco Porras
General Counsel
General Services Commission
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 463-3446
       
Chapter 125. Travel and Transportation Division
Travel Management Services
1 TAC sec.sec.125.1, 125.3, 125.5, 125.7, 125.9, 125.11, 125.13, 125.17, 125.19, 
125.21, 125.23
The General Services Commission proposes amendments to  ssec.125.1, 125.3, 
125.5, 125.7, 125.9, 125.11, 125.13, 125.17, 125.19, 125.21, and new sec.125.23, 
concerning the State Travel Management Program. The amended sections comply with 
the provisions of House Bill 39, 72nd Texas Legislature, Second Called Session, 
amending Texas Civil Statutes, Article 601b, sec.sec.14.01, 14.02, and 14.04.
The amended sections describe mandatory participation in the State Travel 
Management Program by state agencies in the executive branch of government and 
contracting with more than one travel agency. The amended sections delineate the 
rules of use, circumstances of exceptions, and reporting requirements for state 
agencies. The new section implements the recommendations of the Texas 
Performance Review to create a system of state agency travel coordinators to 
facilitate travel management operations.
Michael N. Powers, director, travel and transportation, has determined that for 
each year of the first five-year period the sections are in effect there will be 
fiscal implications for state government as a result of enforcing administering 
the sections. The effect on state government for the first five-year period the 
sections are in effect will be an estimated reduction in cost of $1,833,500 for 
fiscal year 1992 and $1,871,500 for fys 1993-1993. There will be no effect on 
local government.
Mr. Powers 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 section will be a reduction in State of Texas business travel costs and 
expenditures through better travel management policies, practices, and 
coordination, resulting in savings in taxpayers dollars. There will be no effect 
on small businesses. There is no anticipated economic cost to persons who are 
required to comply with the sections as proposed.
Comments on the proposal may be submitted to Judith M. Porras, General Counsel, 
General Services Commission, P.0. Box 13047, Austin, Texas 78711-3047. Written 
comments must be received no later than 30 days from the date of publication of 
the proposal in the Texas Register.
The amendments and new section are proposed under Texas Civil Statutes, Article 
601b, sec.14.01, which provide the General Services Commission with the 
authority to promulgate rules necessary to implement the provisions of Texas 
Civil Statutes, Article 601b, Article 14.
sec.125.1. General.
(a) Pursuant to Texas Civil Statutes, Article 601b,  ssec.14.01, 14.02 and 
14.04[-.05], the commission administers a program to provide services for 
centralized management control and coordination for all official business travel 
undertaken by state employees. This program, known as the State Travel 
Management Program, is administered by the Travel and Transportation Division of 
the commission.
(b)-(d) (No change.)
(e) Pursuant to Texas Civil Statutes, Article 601b,  s14.04, fees, including any 
revenue from the program, will be deposited in the State Treasury to the credit 
of the general revenue fund<nl>, unless a different disposition of the funds is 
required under federal law<ol>.
(f) State agencies <nl>using<ol> [desiring] travel services provided by the 
commission shall submit a travel service requisition to the commission 
[requesting certain travel services].
(g) (No change.)
sec.125.3. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise.
<nl>   City pair-One-way airline flights in either direction between two cities 
as measured from the origin city to the destination city regardless of 
intermediate stopovers or flight connections.
 Commission-The [State Purchasing and] General Services Commission.
<nl>   Discount rate-A price for a travel service established by the commission 
on behalf of the state either through negotiation or a competitive process.
 Director-The director of the Travel and Transportation Division of the [State 
Purchasing and] General Services Commission.
 Executive director -The executive director of the [State Purchasing and] 
General Services Commission.
 State agency-Is defined as follows.
(A)-(B) (No change.)
(C) A university system or an institution of higher education as defined in the 
Texas Education Code, sec.61.003, other than public junior college. [(Pursuant 
to Texas Civil Statutes, Article 601b, sec.14.05, institution of higher 
education located in Travis County are excluded from the provisions of Texas 
Civil Statutes, Article 601b, sec.14.02, until the services provided by the 
State Travel Management Program become of statewide applicability.)]
<nl>   Texas<ol> State Travel Directory-The directory published by the Travel 
and Transportation Division, at least annually, which lists travel vendors and 
applicable current rates.
 Travel agent-Any individual, corporation, association, partnership, 
[association,] company, or firm which has been designated as a duly appointed 
industry agent of the airlines by the Airlines Reporting Corporation and the 
International Airlines Travel Agent Network, or an airline, company, 
corporation, association, partnership, or firm owned by an airline or group of 
airlines which provides travel reservations and ticketing services and is not 
subject to appointment and certification by the Airlines Reporting Corporation 
or the International Airlines Travel Agent Network to provide such services.
 Travel and Transportation Division-A division of the [State Purchasing and] 
General Services Commission as created by Texas Civil Statutes, Article 601b, 
sec.2.09.
sec.125.5. Delineation of Available Services. The program consists of four 
component parts as follows.
(1)-(2) (No change.)
(3) <nl>Discounted<ol> [Negotiated] rate services-Discount rates are 
<nl>established<ol> [negotiated] by the commission with travel vendors for use 
by state employees during official business travel. Notification of available 
rates is given to state employees through provision of the Texas State Travel 
Directory which is published by the commission.
(4) Group/meeting services-Assistance is provided to state agencies sponsoring 
or conducting meetings, conventions, conferences, and seminars<nl>, displays, 
examinations, auctions, and other similar events which are sponsored by state 
agencies whenever space for such events is to be utilized for less than one 
month. <ol>Such assistance includes, but is not limited to, site selection, rate 
negotiation, and contract formulation.
sec.125.7. Travel Agent Services.
(a) (No change.)
(b) Travel agent services are provided under contract between selected travel 
agents and the commission on behalf of the state. The commission represents the 
state in the formulation of such contracts. <nl>Consistent with the requirements 
of Texas Civil Statutes, Article 601b, sec.14.02, the commission shall enter 
into contracts with at least six but no more than 10 providers of travel agency 
services. The commission shall attempt to ensure that travel agency contractors 
be located in areas in various geographical regions of the state, which are 
representative of significant populations of state employees.
(1) <nl>These contracted  <ol>[Contracted] services are available to all 
[participating] state agencies<nl>, however, in accordance with sec.125.19 of 
this title (relating to Participation by State Agencies), state agencies in the 
executive branch of state government, except institutions of higher education, 
are required to use these services.
(2) The length of contracts are determined by agreement between contracting 
travel agents and the commission. [Emphasis is placed upon securing contract 
terms which correspond to predetermined state biennium periods.]
(3) State agencies may [request to] begin participation in the travel agent 
services portion of the program at any time during the term of any travel agency 
contract, with the concurrence of the commission.
(c)-(d) (No change.)
(e) Funds which are returned to the commission through the administration of 
this portion of the program are deposited in the State Treasury to the credit of 
the general revenue fund <nl>, unless a different disposition of the funds is 
required under federal law. The affected state agency must submit written 
evidence that federal law requires a different disposition of these funds to the 
commission at the time the agency begins participation in the program.
<nl>(f) state agency using these travel agency services may use one or all of 
the travel agencies with which the commission enters into contracts.
<nl>(g) A travel agency with which the commission enters into a contract shall 
make travel reservations for state employees in accordance with the provisions 
of sec.125.19(f).
sec.125.9. Charge Card Services.
(a) Charge cards are provided to employees of participating state agencies for 
the purpose of providing <nl>a <ol> [alternative] means of paying for expenses 
incurred on official business [travel in addition to other payment mechanisms 
which may already be in place]. Charge card accounts may be established for 
individual state employees and/or for participating state agencies as single 
entities.
(b) Charge card services are provided by way of a written contract established 
between the commission and the selected charge card company.
(1) <nl>These contracted  <ol>[Contracted] services are available to all 
participating state agencies<nl>, however, in accordance with sec.125.19 of this 
title (relating to Participation by State Agencies), state agencies in the 
executive branch of state government are required to use these services.
(2) State agencies may <nl>begin<ol> [initiate] participation in the charge card 
services portion of the program at any time during the term of a contract with 
the selected charge card company with the concurrence of the commission.
(c)  Participating state agencies may choose how they wish to have charges 
billed as follows.
(1) Individual billing-All official business [travel] charges incurred by 
individual state employees are billed directly to them. Payments for such 
charges billed are initiated by individual account holders with funds reimbursed 
through normal travel voucher procedures.
(2) (No change.)
<nl>(d) A state agency shall approve the issuance of a charge card to an 
employee only if the employee has taken, or is expected to take, a minimum of 
three trips per fiscal year, or the employee is expected to expend a minimum of 
$500 per fiscal year for official state business.
<nl>(e)  All charges incurred on charge cards issued to individuals are solely 
the responsibility of the individuals. The state shall have no responsibility 
for charges on individual accounts regardless of the type of charge, nor shall 
the state be liable for any non-payment by individual cardholders.
<nl>(f)  By accepting a charge card, the individual accepts the responsibility 
for paying all charges incurred on a timely basis and agrees to use the charge 
card only for official state business.
<nl>(g) A state agency shall cancel a charge card issued to an individual upon 
termination of employment of the individual from the state agency. A state 
agency may cancel a charge card issued to an individual if the individual fails 
to adhere to the provisions of subsection (f) of this section, or to any other 
provisions of charge card use that may be established by the state agency.
sec.125.11. <nl>Discount  [Negotiated] Rate Services.
(a) Discount rates for travel and transportation services for state employees 
are <nl>established<ol> [negotiated] by the commission, pursuant to the 
authority of Texas Civil Statutes, Article 601b, sec.14.02.
(b)  Discount rates established under this portion of the program are <nl>to 
be<ol> [available for use] <nl>used <ol> by all state agencies <nl>in accordance 
with sec.125.19 of this title (relating to Participation by State Agencies).
(c) (No change.)
(d) The existence of discount rates established under this portion of the 
program shall be made known to state employees through the Texas State Travel 
Directory which shall be published by the commission at least annually or more 
often as deemed necessary by the commission.
(e)-(f) (No change.)
sec.125.13. Group/Meeting Services.
(a)-(b) (No change.)
(c) basic services provided by the commission are as follows.
(1)-(2) (No change.)
(3) Contract formulation-The commission assists state agencies in formulating 
contracts, when required, with travel vendors in support of any costs and rates 
negotiated for specified meetings or other group functions. [The commission 
signs such contracts on behalf of requesting state agencies in accordance with 
subsection (e) of this section whereby the state agency has already certified 
availability of funds for payment of services pursuant to the contract.]
(d)-(e) (No change.)
sec.12.17. Travel Vendor Selection Process.
(a) (No change.)
(b) When competitive processes are deemed to be in the best interests of the 
<nl>state<ol> [State] and are determined to be a practical method for selecting 
the type of travel vendor at issue, then the commission shall solicit 
<nl>competitive bids by issuance of an invitation for bids, or<ol> proposals by 
issuance of a request for <nl>proposals in accordance with the following.<ol> 
[proposal.]
(1)-(10) (No change.)
<nl>(11) A notice of award shall be sent to the offeror or offerors whose 
proposal(s) are selected for award.
<nl>(c) All contracts resulting from a competitive process as specified in 
subsection (b) of this section shall consist of the request for proposals, the 
offeror's response(s), and the notice of award.
sec.125.19. Participation by State Agencies.
(a)  <nl>Consistent with Texas Civil Statutes, Article 601b, sec.14.02(c), state 
agencies in the executive branch of state government shall participate in the 
program by using the commission's contracts for travel services, which are 
effective for at least a 12-month term. Institutions of higher education are not 
required to use the commission's contracts for travel agency services, but are 
required to use all other contracts for travel services. These contracts 
include, but are not limited to, contracts for rates, fares, or services from 
travel agencies, charge card providers, rental car companies, airlines, hotels, 
and other travel vendors whenever the effective term of the contract is at least 
12 months. <ol> [Participation in the program is at the option of a state 
agency. Participation is encouraged in accordance with the intent of the 
legislature in utilizing the services provided by the program to the maximum 
extent consistent with improved economy and efficiency, as set forth in Texas 
Civil Statutes, Article 601b,  s14.02(a).]
(b) A state agency <nl>that is not required to use the commission's contracts 
for travel services<ol> may participate in the program eat different levels of 
service whereby only selected portions of the program may be utilized, at the 
option of the state agency, to the exclusion of the other portions]. However, 
<nl>such <ol> a state agency that requests participation in the travel agent 
services portion of the program must also participate in the charge card portion 
as well.
(c) Participation in the program is <nl>accomplished <ol> [initiated] by a state 
agency by way of a travel service requisition, duly completed and signed by an 
authorized representative of the stateagency and sent to the commission on a 
form prescribed by the commission. A travel service requisition is submitted 
only once by a state agency to request participation in the travel agent 
services and/or charge card services portions of he program. An individual 
travel service requisition is required to request group/meeting planning 
services for each separate group or meeting. Submission of a travel service 
requisition by a state agency to the commission is not required to utilize 
<nl>discount<ol> [negotiated] rate services.
(d) (No change.)
(e) A state agency <nl>not required to use the commission's contracts for travel 
services <ol> wishing to terminate participation in the program shall so notify 
the commission in writing at least 60 days prior to its desired last day of 
participation.
<nl>(f) Contracts for travel services shall be used as required by 
sec.sec.125.1, 125.3, 125.5, 125.7, 125.9, 125.11, 125.13, 125.15, 125.17, 
125.19, and 125.21 of this title (relating to Travel Management Services) except 
when the following conditions exist:
<nl>(1) traveler is already in travel status which renders the use of the 
services of a travel agent under a commission contract impractical or 
unnecessary;
<nl>(2)  travel is being undertaken as part of a group, conference, or seminar 
for which travel reservations must be placed through a specified source to 
obtain the specified rate or service;
<nl>(3) travel plans must be made on an emergency basis for which a contracted 
travel agency cannot provide services in the timeframe required;
<nl>(4) contract hotel is located more than five miles from traveler's primary 
point of business, and selected non-contract hotel is within five miles of 
traveler's primary point of business and results in lower total cost. Total cost 
includes the cost of the quest room net of taxes, and any additional commuting 
costs that may be required;
<nl>(5) contract hotel or rental car company is unable to provide the required 
services due to a sold-out condition or does not offer services in the city 
being visited;
<nl>(6)  alternative rental car or hotel arrangements can be made at a total 
cost at least 10% below those hotels or rental car companies under contract. 
Total costs include, in the case of rental cars, base rate, loss/damage waiver 
protection, and mileage charges; and in the case of hotels, the cost of the 
guest room net of taxes and any additional commuting costs that may be required;
<nl>(7) contract airline fare is not available for travel within two hours of 
the required travel time of a traveler.
<nl>(8) contract airline offers a fare lower by any amount than the contract 
fare;
<nl>(9)  a discounted airline fare is available from a non-contract airline 
which results in a cost at least 10% below any far (i.e., contract fare or other 
generally available discount fare) available on the applicable contract airline.
<nl>(g) A state agency required to use the commission's contracts for travel 
services may submit a written request to be exempted from using any or all of 
these contracts. The commission may approve an exemption if it determines that 
such an exemption would provide an economic or service benefit to the state 
agency, and that the exemption would not adversely affect current contracts or 
undermine the commission's ability to secure favorable contracts on behalf of 
state government in the future.
sec.125.21. Reporting Requirements for State Agencies.
(a) A state agency that <nl>is<ol> [chooses] not <nl>required <ol> to 
participate, or is not approved by the commission to participate, in both the 
travel agency services and charge card services portion of the program, shall 
submit [periodically], as specified by subsection (b) of this section, certain 
travel data for the purposes of the commission monitoring travel for the state a 
required by Texas Civil Statutes, Article 601b, sec.14.02(a). Data will be 
analyzed and compiled with travel data already provided to the commission 
through the contracted travel agencies and other available sources in order to 
provide statewide travel cost analysis and management reports. Data is also 
utilized in rate negotiations with travel vendors on behalf of the state. State 
agency travel data required to be submitted to the commission under this section 
shall include, but not be limited to, the following information:
(1)-(3) (No change.)
(4) a listing of the <nl>10<ol> [five] most frequently  <nl>used city pairs<ol> 
[visited destinations] and total <nl>airline flight activity used in each city 
pair <ol> [visits made to each]; and
(5) a listing of all travel vendors used (e.g., airlines, lodging, and rental 
car vendors<nl>, and in the case of lodging vendors, their city and state 
locations as well) and<ol> number of times each was utilized.
(b)  (No change.)
(c) state agency <nl>required to use the commission's contract for travel 
services<ol> which <nl>desires to enter <ol> [enters] into a [written] contract 
or agreement with a travel vendor <nl>in addition to, or in place of, the<ol> 
[separate from those] contracts  <nl>entered into<ol> [and agreements arranged] 
by the commission shall <nl>submit <ol> [provide] a copy of such contract or 
agreement to the commission <nl>for approval. The commission shall review and 
approve the contract prior to its execution. Contracts determined to be 
unfavorable to the state, or which may negatively affect the contracts which the 
commission makes or has made will not be approved. Such separate contracts for 
travel services which may be in effect prior to the effective date of this 
subsection shall also be submitted to the commission for review and approval. 
Should the commission not approve such an existing contract, then the state 
agency shall take action to terminate the contract by exercising any allowable 
termination provision of the contract; or, if such a provision does not exist, 
by not renewing the contract at the end of the specified term.
sec.125.23. State Agency Travel Coordinators.
(a) State agencies in the executive branch of state government shall designate 
an employee of the state agency to serve as a state agency travel coordinator. 
This employee shall be responsible for the following travel management functions 
on behalf of the state agency:
(1) receipt and dissemination of travel information from the commission and 
other sources to employees of the state agency that may travel;
(2) coordination with travelers and travel vendors to ensure that contracts for 
travel services are used in accordance with sec.125.19 of this title (relating 
to Participation by State Agencies);
(3) reporting any changes in state agency address to the commission;
(4) reviewing travel data reports provided by travel vendors and initiating 
appropriate corrective action in identified instances of failure to use travel 
contracts in accordance with sec.125.19;
(5) monitoring of overall state agency travel activities with input made to the 
commission regarding any additional service needs or resolution of problems that 
occur.
(b) A state agency may designate one or more employees to serve as state agency 
travel coordinators as determined necessary by the state agency.
(c) The name, address, and phone number of the state agency travel coordinator 
shall be communicated in writing to the commission's Travel and Transportation 
Division. Any changes in designation of the state agency travel coordinator by a 
state agency must also be communicated in writing to the commission's Travel and 
Transportation Division within 30 days of such 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 26, 1991.
TRD-9114887
Judith M. Porras
General Counsel
General Services Commission
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 463-3446
       
TITLE 7. BANKING AND SECURITIES
Part VI. Credit Union Department
Chapter 91. Chartering, Operations, Mergers, Liquidations
Powers of Credit Unions
7 TAC sec.91.402
The Credit Union Commission proposes amendment to sec.91.402, concerning the 
retention of records. The current requirements have become somewhat obsolete and 
need to be updated to accommodate current statutory and regulatory requirements, 
as well as new technology available for copying documents. The proposed change 
will provide greater flexibility in recognizing ongoing changes in retention 
requirements and should provide some relief to credit unions in the burden of 
preserving essential records.
John R. Hale, 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 sections.
Mr. Hale 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 records retention requirements will be updated to meet 
statutory and regulatory requirements. There will be no effect on small 
businesses. The anticipated economic cost to persons who are required to comply 
with the section as proposed will likely not be greater than presently required.
Comments on the proposal will be submitted to Harry L. Elliott, Staff Services 
Officer, 914 East Anderson Lane, Austin, Texas 78752-1699.
The new section is proposed under the provisions of Texas Civil Statutes, 
Article 2461-11.07, which provides the Credit Union Commission with the 
authority to adopt reasonable rules necessary for the administration of the 
Texas Credit Union Act.
sec.91.402. Records Retention.
(a) General. Except for those records described in subsection (b) of this 
section, the requirement to retain any records under this rule may be satisfied 
by retention of the original or a copy. Upon expiration of the applicable 
retention period, the records may be destroyed. Destruction of any records under 
this rule is permissive and not mandatory or directed. The destruction of any 
record of a credit union, regardless of how inconsequential it may seem or how 
old it has become, is a matter that requires careful consideration. Such 
consideration should include not only the requirements of the department, the 
Credit Union Act (Act), and this rule, but other applicable laws, rules, 
regulations, or government agency directives which expressly, or implicitly 
impose records retention requirements. As a general rule, no record related to a 
particular accounting period may be destroyed (unless it is an original replaced 
by a copy) until the comprehensive annual audit and a supervisory examination by 
the Credit Union Department have been made for that period. Further 
consideration toward the destruction of a record will involve whether or not 
that record may be needed to support the credit union's position in pending, 
threatened, anticipated, or unanticipated legal actions or proceedings. This 
necessarily involves potential retention for the minimum period or periods 
prescribed by applicable statutes of limitations under state and federal law. 
Accordingly, to be consistent with this rule and the requirements of other 
applicable law, the board of directors shall approve a written policy 
authorizing the destruction of specified records on a continuing basis upon 
expiration of specified retention periods. This policy shall provide a 
systematic method for destruction of records under a continuing authority in 
order to eliminate the necessity for the board to give unnecessary repeated 
consideration to destruction of the same types of records merely because they 
relate to different accounting periods. The officer or person responsible for 
destruction of records shall make and retain a listing of such records 
permanently.
(b) Originals retained. The following records must be retained permanently in 
their original form:
(1) charter, bylaws, articles of incorporation, and amendments thereto; and
(2) currently effective certificates or licenses to operate under programs of 
various government agencies, such as a certificate to act as issuing agent for 
the sale of United States savings bonds.
(c) Permanent records. Records which are significant to the continuing operation 
of the credit union must be retained permanently. Such records are:
(1) currently effective membership applications, joint membership agreements, 
payable on death agreements, share draft agreements, signature cards, and any 
other account agreements;
(2)  minutes of meetings of the members and board of directors;
(3)  journal and cash record;
(4) general ledger and subsidiary ledgers;
(5) for active accounts, one copy of each individual share and loan ledger or 
its equivalent;
(6) comprehensive annual audit reports including evidence of account 
verification; and
(7) examination reports and official correspondence from the department or any 
other government agency acting in a regulatory capacity.
(d) The following records must be retained until the expiration of five years 
following the making of the record or the last entry thereon, or the expiration 
of the applicable statute of limitations, whichever is later:
(1) records related to closed accounts including membership applications, joint 
membership agreements, payable on death agreements, signature cards, share draft 
agreements, and any other account agreements;
(2) for an active account, any account agreement which is no longer in effect.
(e) Method of copying. Credit unions must use a copying process which produces a 
means to retrieve the information in a readable and usable format.
(f) Data processing records. Provisions of this rule apply to records produced 
by a data processing system. Output reports that substitute for standard 
conventional records, or that provided the only support for entries in the 
journal and cash record, should be retained for the minimum period specified in 
this rule or by the board. As with most other records, retention of the original 
or a copy of the original satisfies the requirements of this rule.
(g) Records preservation. All state chartered credit unions are required to 
maintain a records preservation program to identify and store vital records in 
order that they may be reconstructed in the event the credit union's records are 
destroyed. Storage of vital records is the responsibility of the board but may 
be delegated to the responsible persons(s). A vital records storage center 
should be established at some location that is far enough from the credit union 
office to avoid the simultaneous loss of both sets of records in the event of a 
disaster. Records must be stored every calendar quarter within 30 days following 
quarter-end at which time records stored for the previous quarter may be 
destroyed. Stored records may be in any form which can be used to reconstruct 
the credit union's records. This includes machine copies, microfilm, or any 
other usable copy. The records to be stored shall be for the most recent month-
end and are:
(1) a list of all shares and/or deposits and loan balances for each members 
account. Each balance on the list is to be identified by an account name or 
number. Multiple balances of either shares or loans to one account shall be 
listed separately;
(2)  a financial statement/statement of financial condition which lists all the 
credit union's assets and liability accounts;
(3) a listing of the credit union's banks, insurance policies and investments. 
This information may be marked "permanent" and updated only when changes are 
made.
(h)  Compliance. Credit unions that have some or all of their records maintained 
by an off-site data processor are considered to be in compliance so long as the 
processor meets the minimum requirements of this section. Credit unions that 
have in-house capabilities shall make the necessary provisions to safeguard the 
backup of data on a continuing basis.
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 25, 1991.
TRD-9114827
John R. Hale
Commissioner
Credit Union Department
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 837-9236
       
Chapter 101. General Administration
7 TAC sec.101.4
The State Securities Board proposes an amendment to sec.101.4, concerning 
requests for examination and photocopying of records.
Tom Spradlin, chief of staff services, has determined that for the first five-
year period the section is in effect there will be no fiscal implications for 
state or local government as a result of enforcing or administering the section.
Mr. Spradlin 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 accurate reflection in the agency's rules of the agency's 
procedures for addressing requests under the Texas Open Records Act. There will 
be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the section as proposed.
Comments on the proposal may be submitted to Denise Voigt Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The amendment is proposed under Texas Civil Statutes, Article 581, sec.28-1, 
which provide the board with the authority to adopt rules and regulations 
governing registration statements and applications; classify securities, 
persons, and matters within its jurisdiction; and prescribe different 
requirements for different classes.
sec.101.4. Examination of Records. Upon receipt of a request for examination of 
records pursuant to the <nl>Texas Open Records Act<ol>, [Freedom of Information 
Bill], Texas Civil Statutes, Article 6252-17a, <nl>Form 133.1 as<ol> [the 
appropriate application form,] prescribed by the commissioner, will be furnished 
to the party requesting the examination. The requesting party shall indicate on 
the form the specific nature of the documents requested for examination or 
photocopying, and if photocopying is desired the appropriate fee must accompany 
the request.
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 25, 1991.
TRD-9114777
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1991
For further information, please call: (512) 474-2233
       
7 TAC sec.101.5
The State Securities Board proposes new sec.101.5, concerning costs to persons 
requesting photocopied reproductions of State Securities Board records pursuant 
to the provisions of the Texas Open Records Act. The section reflects the costs 
established by the General Services Commission.
Tom Spradlin, chief of staff services, has determined that for the first five-
year period the section is in effect there will be no fiscal implications for 
state or local government as a result of enforcing or administering the section.
Mr. Spradlin 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 persons will have notice of the costs for certified and 
noncertified photocopied reproductions of agency records. 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 Denise Voight Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The new section is proposed under Texas Civil Statutes, Article 581, sec.28-1, 
which provide the board with the authority to adopt rules and regulations 
governing registration statements and applications; classify securities, 
persons, and matters within its jurisdiction; and prescribe different 
requirements for different classes.
sec.101.5. Cost of Copies of Public Records. <ol> The cost to any person 
requesting photocopied reproductions of any readily available records of the 
State Securities Board, comprised of pages up to legal size, which are subject 
to public examination pursuant to the provisions of the Texas Open Records Act, 
Texas Civil Statutes, Article 6252-17a, shall be as follows.
(1) For noncertified copies:
(A) $.10 per page for requests totaling 50 pages or less;
(B) $.85 for the first page and $.15 for each additional page for requests 
totaling 51 pages or more.
(2) For certified copies the charge shall be $1.00 per page plus a $5.00 
certification fee.
(3) When copies are required to be mailed, the cost of postage will be added to 
the computed fee.
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 25, 1991.
TRD-9114778
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 474-2233
       
Chapter 115. Dealers and Salesmen
7 TAC sec.115.1
The State Securities Board proposes an amendment to sec.115.1, concerning the 
requirement that applicants for dealer and/or investment adviser registration 
execute an agreement to make records available to the securities commissioner or 
his representative.
Peggy Peters, director, Dealer Registration Division, has determined that there 
will be no fiscal implications as a result of enforcing or administering the 
section.
Ms. Peters also has determined that for each of the first five years the amended 
section is in effect the public benefits anticipated as a result of enforcing 
the section will be the accurate reflection in the agency's rules of the 
requirement that applicants for dealer and/or investment adviser registration 
execute an agreement to make records available to the commissioner or his 
representative. 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 Denise Voight Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The amendment is proposed under Texas Civil Statutes, Article 581, sec.28-1, 
which provide the board with the authority to adopt rules and regulations 
governing registration statements and applications; classify securities, persons 
and matters within its jurisdiction; and prescribe different requirements for 
different classes.
sec.115.1. General.
(a)-(b) (No change.)
(c) <nl>Availability of records. <ol> [Out-of-state applicants]. <nl>All<ol> 
[out-of-state] applicants <nl>for dealer and/or investment adviser registration 
<ol> [who do not designate and maintain at least one branch office in this 
state] must execute <nl>a Form 133.16<ol> [an] agreement that records will be 
made available in the <nl>registrant's <ol> office <nl>for immediate inspection 
or, if required, will be made available in the office<ol> of the State 
Securities Board within 48 hours <nl>of <ol> [after] request by the commissioner 
or his representative.
(d)-(h) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 25, 1991.
TRD-9114782
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1991
For further information, please call: (512) 474-2233
       
7 TAC sec.115.4
The State Securities Board proposes an amendment to sec.115.4, concerning 
dealers and salesmen. The amendment is being proposed in order to add a new 
procedure which will allow certain persons on active duty in the armed forces to 
renew their registration without having to pay a penalty for late renewal.
Peggy Peters, director, Dealer Registration Division, 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. Peters 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 accurate reflection of several dealer and agent registration 
related fee increases made by the 72nd Legislature and that certain persons on 
active duty in the armed forces will be able to renew their registration without 
having to pay a penalty for late renewal. 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 Denise Voight Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The amendment is proposed under Texas Civil Statutes, Article 581, sec.28-1, 
which provide the board with the authority to adopt rules and regulations 
governing registration statements and applications; classify securities, 
persons, and matters within its jurisdiction; and prescribe different 
requirements for different classes.
sec.115.4. Evidences of Registration.
(a)-(d) (No change.)
(e) Renewal.
(1)-(4) (No change.)
<nl>(5) If a person's registration is not timely renewed because such person is 
or was on active duty with the armed forces of the United States of America 
serving outside the State of Texas, such person may renew the registration 
pursuant to this paragraph.
<nl>(A) Renewal of the registration may be requested by such person, such 
person's spouse, or an individual having power of attorney from such person. The 
renewal application shall include a current address and telephone number for the 
individual requesting the renewal.
<nl>(B) Renewal may be requested before or after expiration of the registration.
<nl>(C) A copy of the official orders or other official military documentation 
showing that such person is or was on active duty serving outside the State of 
Texas shall be submitted to the commissioner along with the renewal application.
<nl>(D) A copy of the power of attorney from such person shall be filed with the 
commissioner along with the renewal application if the individual having the 
power of attorney executes any of the documents required in this paragraph.
<nl>(E) A renewal application submitted to the commission pursuant to this 
paragraph shall be accompanied by the applicable renewal fee set out in 
subsection (f) of this section.
<nl>(F) The State Securities Board will not assess any increased fee or other 
penalty against the person for failure to timely renew such person's 
registration if such person establishes to the satisfaction of the commissioner 
that all requirements of this paragraph have been met.
(f) Classifications. Registrations are classified as follows:
(1) securities dealer-fee, <nl>$275 <ol> [$70] for original or <nl>$240<ol> 
[$35] for renewal;
(2) investment adviser-fee, <nl>$275 <ol> for original or  <nl>$240<ol> [$35] 
for renewal of dealer/investment adviser and <nl>$235<ol> [$30] for original or 
<nl>$220 <ol> [$15] for renewal of an agent, officer, partner, or 
salesman/investment adviser;
(3) agent, officer, partner, or salesman-fee,  <nl>$235<ol> [$30] for original 
or <nl>$220<ol> [$15] for renewal.
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 25, 1991.
TRD-9114783
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1991
For further information, please call: (512) 474-2233
       
Chapter 133. Forms
7 TAC sec.133.1
The State Securities Board proposes an amendment to sec.133.1, concerning needed 
revisions to the application for public information form which is being renamed 
the Texas Open Records Act request, and updated.
Tom Spradlin, chief of staff services, has determined that for the first five-
year period the section is in effect there will be no fiscal implications for 
state or local government as a result of enforcing or administering the section.
Mr. Spradlin 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 availability of an updated form for making requests for 
information pursuant to the Texas Open Records Act. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the section as proposed.
Comments on the proposal may be submitted to Denise Voigt Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The amendment is proposed under Texas Civil Statutes, Article 581, sec.28-1, 
which provide the board with the authority to adopt rules and regulations 
governing registration statements and applications; classify securities, 
persons, and matters within its jurisdiction; and prescribe different 
requirements for different classes.
sec.133.1. <nl>Texas Open Records Act Request  [Application for Public 
Information]. The State Securities Board adopts by reference the <nl>Texas Open 
Records Act Request <ol> [application for public information] <nl>as amended in 
January 1991.<ol> This form is available from the State Securities Board, P.O. 
Box 13167, [Capitol Station] Austin, Texas 78711.
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 25, 1991.
TRD-9114779
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1991
For further information, please call: (512) 474-2233
       
7 TAC sec.133.2, sec.133.3
(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 State 
Securities Board or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The State Securities Board proposes the repeal of sec.133.2 and sec.133.3, 
concerning the forms for making a request for public records in storage form and 
for making an Open Records Act request, since these forms are no longer used.
Tom Spradlin, chief of staff services, has determined that there will be no 
fiscal implications as a result of enforcing or administering the repeals.
Mr. Spradlin also has determined that for each of the first five years the 
amended repeals are proposed is in effect the public benefits anticipated as a 
result of enforcing the repeals are proposed will be the repeal of an 
unnecessary form. 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 Denise Voight Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The repeals are proposed under Texas Civil Statutes, Article 581, sec.28-1, 
which provide the board with the authority to adopt rules and regulations 
governing registration statements and applications; classify securities, 
persons, and matters within its jurisdiction; and prescribe different 
requirements for different classes.
sec.133.2. Request for Public Records in Storage Form.
sec.133.3. Open Records Act Request.
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 25, 1991.
TRD-9114780
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 474-2233
       
7 TAC sec.133.15
The State Securities Board proposes an amendment to sec.133.15, concerning the 
application for registration as an individual securities dealer or investment 
adviser. The amendment reflects the filing fee increases contained in House Bill 
11, 72nd Legislature, First Called Session, 1991.
Peggy Peters, director, dealer registration division, has determined that there 
will be no fiscal implications as a result of enforcing or administering the 
section.
Ms. Peters also has determined that for each of the first five years the section 
is in effect the public benefit anticipated as a result of enforcing the section 
will be inclusion within the form of the correct fee for filing the application 
for registration. 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 Denise Voight Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The amendment is proposed under Texas Civil Statutes, Article 581, sec.28-1, 
which provide the board with the authority to adopt rules and regulations 
governing registration statements and applications; classify securities, 
persons, and matters within its jurisdiction; and prescribe different 
requirements for different classes.
sec.133.15. Application for Registration as an Individual Securities Dealer or 
Investment Adviser. The State Securities Board adopts by reference the 
application for registration as an individual securities dealer or investment 
adviser, as amended in <nl>January 1991<ol> [October 1989]. This form is 
available from the State Securities Board, P.O. Box 13167, Austin, Texas 78711.
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 25, 1991.
TRD-9114785
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 474-2233
       
7 TAC sec.133.17, sec.133.19
The State Securities Board proposes new sec.133.17 and an amendment to 
sec.133.19, concerning the new multiple registration-undertaking to disclose 
affiliations form in order to assure that applicants for multiple registration 
comply with the requirements for multiple registration and concerning the 
application for registration of a corporation or partnership as a securities 
dealer or investment advisor or as a securities salesman. The amendment reflects 
the filing fee increases contained in House Bill 11, 72nd Legislature, First 
Called Session, 1991.
Peggy Peters, director, dealer registration division, has determined that there 
will be no fiscal implications as a result of enforcing or administering the 
sections.
Ms. Peters also has determined that for each of the first five years the amended 
section are proposed is in effect the public benefits anticipated as a result of 
enforcing the section are proposed will be the availability of a standardized 
form upon which applicants for multiple registration can undertake to disclose 
such affiliations in accordance with 7 TAC sec.115.1(e)(1)(A), concerning 
multiple registration and inclusion within the form of the correct fee for 
filing the application for registration. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the sections as proposed.
Comments on the proposal may be submitted to Denise Voight Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The new section and amendment are proposed under Texas Civil Statutes, Article 
581, sec.28-1, which provide the board with the authority to adopt rules and 
regulations governing registration statements and applications; classify 
securities, persons, and matters within its jurisdiction; and prescribe 
different requirements for different classes.
sec.133.17. Multiple Registration-Undertaking to Disclose Affiliations.  <ol> 
The State Securities Board adopts by reference the multiple registration-
undertaking to disclose affiliations in January 1991. This form is available 
from the State Securities Board, P.O. Box 13167, Austin, Texas 78711.
sec.133.19. Application for Registration of a Corporation or Partnership as a 
Securities Dealer or Investment Adviser or as a Securities Salesman.  The State 
Securities Board adopts by reference the application for registration of a 
corporation or partnership as a securities dealer, investment adviser, or 
securities salesman, as amended in <nl>January 1991<ol> [October 1989]. This 
form is available from the State Securities Board, P.O. Box 13167, Austin, Texas 
78711.
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 25, 1991.
TRD-9114789
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 474-2233
       
7 TAC sec.sec.133.20, 133.23, 133.24
The State Securities Board proposes amendments to sec.133.20 and sec.133.24 and 
new sec.133.23, concerning the application for registration of an officer or 
partner and a securities salesman. The amendments reflect the filing fee 
increases contained in House Bill 11, 72nd Legislature, First Called Session, 
1991. The new section concerns a new form upon which corporate applicants may 
certify that Texas franchise taxes either are not owed at all or that payment of 
such taxes has been made.
Peggy Peters, director, dealer registration division, 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.
Ms. Peters 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 inclusion within the form of the correct fee for filing the 
application for registration and corporate applicants will be able to use a 
standardized form for certifying that Texas franchise taxes either are not owed 
at all or that payment of such taxes has been made. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the sections as proposed.
Comments on the proposal may be submitted to Denise Voight Crawford, State 
Securities Board, P.O. Box 13167, Austin, Texas 78711-3167.
The amendments and new section are proposed under Texas Civil Statutes, Article 
581, sec.28-1, which provide the board with the authority to adopt rules and 
regulations governing registration statements and applications; classify 
securities, persons, and matters within its jurisdiction; and prescribe 
different requirements for different classes.
sec.133.20. Application for Registration of an Officer or Partner.  The State 
Securities Board adopts by reference the application of an officer or partner, 
as amended in <nl>January 1991<ol> [October 1989]. This form is available from 
the State Securities Board, P.O. Box 13167, Austin, Texas 78711.
sec.133.23. Franchise Tax Certification for Corporate Applicants.  The State 
Securities Board adopts by reference the franchise tax certification for 
corporate applicants in January 1991. This form is available from the State 
Securities Board, P.O. Box 13167, Austin, Texas 78711.
sec.133.24. Application for Registration as a Securities Salesman or Agent. The 
State Securities Board adopts by reference the State Securities Board 
application for registration as a securities salesman or agent, as amended in 
<nl>January 1991<ol> [June 1990]. This form is available from the State 
Securities Board, P.O. Box 13167, Austin, Texas 78711.
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 25, 1991.
TRD-9114787
Richard D. Latham
Securities Commissioner
State Securities Board
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 474-2233
       
TITLE 16. ECONOMIC REGULATION
Part I. Railroad Commission of Texas
Chapter 3. Oil and Gas Division
Conservation Rules and Regulations
16 TAC sec.3.5
The Railroad Commission of Texas proposes an amendment to sec.3.5, concerning 
applications to drill, deepen, plug back, or reenter. The proposed amendment 
requires that for an organization to be eligible to apply for a permit to drill, 
deepen, plug back, or reenter a well that the organization or any person in the 
organization who holds a position of ownership or control not have committed any 
violation of a commission rule, order, license, permit, or certificate that 
relates to safety or the prevention or control of pollution or Title 3, Texas 
Natural Resources Code, within the last five years, which has not been corrected 
or penalties or costs of remedying said violation have not been paid. An 
applicant organization will also be required to file any relevant information 
requested by the Railroad Commission. The existing language in sec.3. 5 was 
adopted by the Railroad Commission on September 29, 1986, to be effective 
October 30, 1986, and was published in the October 7, 1986, issue of the Texas 
Register (11 TexReg 4214).
Rita E. Percival, systems analyst, Oil and Gas Division, has determined that for 
the first five-year period the in effect, there will be fiscal implications as a 
result of enforcing or administering it. The effect on state government will be 
an estimated cost of $38,320 for fiscal year 1992 and $15,640 a year for fiscal 
years 1993-1996. There will be no fiscal implications for local government. 
There will be no cost of compliance with the proposed section for small 
businesses as a result of enforcing or administering the section if they have a 
record of compliance with state law and the commission's safety and pollution 
rules.
Peggy S. Gray, hearings examiner, Legal Division, 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 increase compliance 
with the Railroad Commission's safety and pollution rules whose goal is to 
ensure clean water for Texas. There is no anticipated economic cost to persons 
who are required to comply with the proposed section if they have a record of 
compliance with state law and the commission's safety and pollution rules.
Comments on the proposal may be submitted to Peggy Gray, Hearings Examiner, Oil 
and Gas Section, Legal Division, Railroad Commission of Texas, P.0. Drawer 
12967, Austin, Texas 78711-2967. The docket number for this proposal is 20-97, 
160. All comments must be submitted by 5 p.m. on January 6, 1992.
The amendment is proposed pursuant to the requirements of the Texas Natural 
Resources Code, sec.sec.85.202, 85.2021, and 91.110, which provides the Railroad 
Commission of Texas with the authority to adopt rules for the filing of drilling 
permit applications and for drilling permit fees.
sec.3.5. Rule 5. Application to Drill, Deepen, Reenter, or Plug Back.
(a) <nl>Permit requirements for spacing density and units <ol> [(Reference Order 
Number 20-65,618)]. An application for a permit to drill, deepen, plug back, or 
reenter any oil well, gas well, or geothermal resource well, shall be made under 
the provisions of sec.sec.3.37, 3.38, and/or 3.39 of this title (relating to 
Statewide Spacing Rule; Well Densities; and Proration and Drilling Units: 
Contiguity of Acreage and Exception Thereto) (Statewide Rules 37, 38, and 39), 
or as an exception thereto, or under special rules governing any particular oil, 
gas, or geothermal resource field or as an exception thereto and filed with the 
commission on a form approved by the commission. <nl>An application must be 
accompanied by any relevant information, form or certification required by the 
Railroad Commission or a commission representative.
<nl>(b) Definitions. The following words and terms, when used in this section 
shall have the following meanings, unless the context clearly indicates 
otherwise.
<nl>(1) Application-Request by an organization on the appropriate form for a 
permit to drill deepen plug back, or reenter any oil well, gas well or 
geothermal resource well.
<nl>(2) Commission-The Railroad Commission of Texas.
<nl>(3) Commission representative -A commission employee authorized to act for 
the commission. Any authority given to a commission representative is also 
retained by the commission. Any action taken by the commission representative is 
subject to review by the commission.
<nl>(4)  Organization-Any person firm, partnership joint stock association, 
corporation or other organization domestic or foreign, operating wholly or 
partially within this state acting as principal or agent for another, for the 
purpose of performing operations within the jurisdiction of the commission.
<nl>(5) Outstanding final order -Either a commission order against an 
organization finding that the organization has committed a violation and all 
appeals have been exhausted or an agreed order entered into by the commission 
and an organization relating to an alleged violation, where:
(A) the conditions that constituted the violation or alleged violation have not 
been corrected;
<nl>(B) all administrative, civil and criminal penalties if any, relating to the 
violation or agreed settlement relating to an alleged violation have not been 
paid; or
<nl>(C) all reimbursements of costs and expenses if any, assessed by the 
commission relating to the violation or to the alleged violation have not been 
collected.
(6) Position of ownership or control-A person holds a position of ownership or 
control in an organization if the person is:
<nl>(A) an officer or director of the organization;
<nl>(B) a general partner of the organization;
<nl>(C) the owner of an organization which is a sole proprietorship;
<nl>(D) the owner of more than a 25% ownership interest in the organization; or
<nl>(E) the designated trustee of the organization.
<nl>(7)  Violation-Noncompliance with Texas Natural Resources Code, Title 3, or 
a commission rule order license permit, or certificate relating to safety or the 
prevention or control of pollution.
<nl>(c) Organization eligibility to file an application. The commission may not 
accept an application from an organization, if within the five years preceding 
the date on which the application is filed:
<nl>(1) the applicant organization has any outstanding final orders against it; 
or
<nl>(2) any person holding a position of ownership or control in the applicant 
organization also has held a position of ownership or control in any 
organization, including the applicant organization registered with the 
commission that has an outstanding final order against it during that period of 
ownership or control.
<nl>(d) Compliance certification.
<nl>(1)  The commission or a commission representative may require an applicant 
organization to file a compliance certification. The certification shall include 
a statement that within the last five years:
<nl>(A) the applicant organization has no outstanding final orders against it; 
and
<nl>(B) no person in a position of ownership or control of the applicant 
organization has held a position of ownership or control in any organization, 
including the named organization, that has an outstanding final order against it 
relating to a violation during that period of ownership or control.
<nl>(2) Failure to file a required certification will delay or prevent approval 
of the application. Knowingly filing a false certification may be a violation of 
the Texas Natural Resources Code, sec.91.143 and may also subject a permit to 
denial or revocation. A permit that is issued on the basis of a certification 
statement that is later determined to be incorrect is also subject to 
revocation.
<nl>(3) If the certification is signed by an agent of an applicant organization 
the certification is binding on the agent and the organization as if signed by a 
person holding a position of ownership or control in the organization.
<nl>(e)<ol>[(1)] <nl>Commencement of operations.<ol> Operations of drilling, 
deepening, plugging back, or reentering shall not be commenced until the permit 
has been granted by the commission and the waiting period, if any, has 
terminated, or authorization has been granted pursuant to [paragraph (2) of 
this] subsection <nl>(f) of this section.
<nl>(f)<ol>[(2)] <nl>Testing of existing wells in other reservoirs inside the 
casing. <ol>For an existing well, an operator may request authorization to 
commence operations to deepen inside the casing or plug back prior to the 
granting of a permit to deepen or plug back.
<nl>(1)  This authorization <nl>shall<ol> [may] be requested by filing with the 
district office a letter of intent to deepen inside the casing or plug back. The 
letter shall include.
<nl>(A) the operator name;
<nl>(B) the lease name;
<nl>(C) the lease number or gas identification number;
<nl>(D) well number;
<nl>(E) county;
<nl>(F) field name;
<nl>(G) a list of all reservoir(s) to be tested;
<nl>(H)  the casing setting depth and the depth of the deepest reservoir to be 
tested;
<nl>(I) a plat showing the well location; and
<nl>(J) a statement as to whether or not the well location would require an 
exception to sec.sec.3.37, 3.38, and/or 3.39 of this title (relating to 
Statewide Spacing Rule; Well Densities; and Proration and Drilling Units: 
Contiguity of Acreage and Exception Thereto) (Statewide Rules 37, 38, and 39) if 
completed in any of the reservoirs to be tested. If an exception would be 
required, the letter of intent shall also include a statement that all affected 
offsets have been given written notice of the intent to test with the 
opportunity to witness the testing and the offsets shall be identified on the 
plat.
<nl>(2) Operations of deepening inside the casing or plugging back shall not be 
commenced until the district office has reviewed and signed the letter of 
intent. Testing pursuant to this authorization shall be completed within 90 days 
from the date the district office signs the letter of intent.
(A) No reservoir tested pursuant to the provisions of this subsection shall be 
tested for more than 15 days.
(B) If the operator desires to place the well on production, the operator shall 
shut-in the well, with no production being sold, and file a permit application 
for the tested reservoirs with the appropriate fees. If the permit application 
for the tested reservoirs requires an exception to sec.sec.3.37, 3.38, and/or 
3.39 of this title (relating to Statewide Spacing Rules; Well Densities; and 
Proration and Drilling Units: Contiguity of Acreage and Exception Thereto) 
(Statewide Rules 37, 38, and 39), no consideration will be given by the 
commission to the cost of recompleting and testing the well in determining 
whether or not to grant the exception.
(C) Within 30 days of completion of testing, the operator must either file an 
application for a permit to produce a reservoir tested pursuant to [paragraph 
(2) of] this subsection or file an amended completion report in accordance with 
sec.3.16 of this title (relating to Log and Completion of Plugging Report) 
(Statewide Rule 16) with a copy of the intent to test signed by the district 
office and a statement that a permit to produce a tested reservoir is not being 
sought, or if the well has been plugged and abandoned, a plugging report 
including reservoir and perforation data. If a permit is not obtained for the 
tested reservoirs and/or an allowable is not assigned, the producer shall report 
all test production in the that producer's monthly report filed for the last 
permitted reservoir in which the well was completed ad may request authorization 
to sell the test production. The test production may be sold after such 
authorization is granted.
<nl>(g)<ol>[(b)] <nl>Exploratory and specialty wells<ol> [(Reference Order 
Number 20-54,027, effective August 1, 1964)]. An application for [a permit to 
drill, deepen, plug back, or reenter] an exploratory well, cathodic protection 
well that penetrates the base of the fresh water strata, fluid injection well, 
injection water source well, disposal well, brine solution mining well, or 
underground hydrocarbon storage well shall be made and filed with the commission 
on a form approved by the commission. Operations for drilling, deepening, 
plugging back, or reentering shall not be commenced until the permit has been 
granted by the commission. For an exploratory well, an exception to filing such 
form prior to commencing operations may be obtained if an application for a core 
hole test is filed with the commission.
<nl>(h)<ol>[(c)]<nl>Exception permits.<ol> If an application for a permit 
presents a question of an exception to the applicable density rule as well as an 
exception to the spacing rule, [a hearing shall be held at which] the operator 
seeking a spacing and density exception must <nl>obtain such an exception <ol> 
[offer proof that such an exception is necessary] as required under the 
applicable spacing and density rules.
[(d) Plugging Bond (Rescinded by Order No. 20-54,299, dated 1-12-66. Adopted in 
Order No. 20-54,027, effective 8-1-64 but suspended indefinitely).]
<nl>(i) Drilling permit fee. With each application or materially amended 
application, the applicant shall submit to the commission a nonrefundable fee as 
determined by 3.76 of this title (relating to Rule 76. Commission Approval of 
Plats for Mineral Development) (Statewide Rule 78).
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 25, 1991.
TRD-9114820
Martha V. Swanger
Hearings Examiner-Gas Utilities-LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 463-6941
       
Chapter 5. Transportation Division
Subchapter AA. Rail Safety
16 TAC sec.5.625
The Railroad Commission of Texas proposes an amendment to sec.5.625, concerning 
hazardous materials reporting requirements. The proposed amendment would change 
reporting requirements under subsection (c) to harmonize those requirements with 
federal law, would require 24-hour operation of railroad dispatch telephones, 
would more accurately reflect the relative number of carloads of hazardous 
materials moving over railroad line segments identified within the state, would 
clarify peak density season reports, and would add a requirement that railroads 
report, for each identified line segment, the Texas counties and the railroad 
operating divisions traversed by that line segment.
Mike Calhoun, manager of rail safety and planning, has determined that there 
will be no fiscal implications as a result of enforcing or administering the 
section.
Mr. Calhoun also has determined that for each of the first five years the 
section as proposed is in effect the public benefits anticipated as a result of 
enforcing the section will be to enhance and clarify hazardous materials 
reporting by railroad companies. There will be no effect on small businesses. 
Most railroad companies operating within the state already keep hazardous 
material reporting information in data retrieval systems for in-house purposes. 
Consequently, there is minimal anticipated economic cost to persons required to 
comply with the section as proposed.
Comments on the proposal may be submitted to Kenneth W. Mills, Hearings 
Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, 
Texas 78711-2967. Comments will be accepted for 30 days after publication in the 
Texas Register.
The amendment is proposed under Texas Civil Statutes, Article 6419c, which 
authorize the commission to require hazardous materials reporting of railroad 
companies.
sec.5.625. Hazardous Materials Reporting Requirements.
(a)-(b) (No change.)
(c) Reporting requirements. A railroad company that transports hazardous 
materials in or through the state is required to file the following information 
with the commission:
(1) a copy of the report of each hazardous materials incident occurring within 
the State of Texas that the railroad company files with the federal Department 
of Transportation in accordance with 49 Code of Federal Regulations, 
sec.171.16[, not later than the 15th day after the date the incident that forms 
the basis of the report is discovered];
(2) (No change.)
(3) a primary and secondary telephone number<nl>, which are manned 24 hours per 
day,<ol> for the railroad company dispatcher responsible for train operations in 
each operating division or district in the state;
(4) (No change.)
(5) a list of each type of hazardous material (sorted by hazard class, quantity, 
and peak density season) transported over each railroad line segment owned, 
leased, or operated by the railroad company in the state during the reporting 
year.
(A) (No change.)
(B) The quantity of hazardous materials transported will be classified into the 
following five categories depending on the number of shipments of hazardous 
materials transported in a year:
(i) more than <nl>10,000 <ol> [1,000] cars-per-year;
(ii)<nl> 5,001 to 10,000 <ol> [501 to 1,000] cars-per-year;
(iii)<nl> 1,001 to 5,000 <ol> [51 to 500] cars-per-year;
(iv)<nl> 501 to 1,000 <ol> [one to 50] cars-per-year;
(v)<nl> 51 to 500 cars-per-year; <ol>[none.]
<nl>(vi)<nl> one to 50 cars-per-year.
(C) Peak density season shall be defined as that portion of the calendar year in 
which the preponderance of the year's total shipments occurred. There may be no 
obvious peak density season for all hazard classes. The portions of the calendar 
year are broken down as follows:
(i)-(iii) (No change.)
(iv) winter-January-March<nl>;
<nl>(v)<nl> N/A-no obvious peak density season.
<nl>(D) Texas counties traversed by each railroad line segment shall be 
identified.
<nl>(E) The applicable railroad operating division or district shall be 
identified for each railroad line segment. A railroad line segment shall not 
traverse more than one railroad operating division or district.
(d)-(g) (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 25, 1991.
TRD-9114817
Martha V. Swanger
Hearings Examiner-Gas Utilities-LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 463-7094
       
Chapter 11. Surface Mining and Reclamation Division
Subchapter D. Coal Mining
16 TAC sec.11.221
The Railroad Commission of Texas proposes an amendment to sec.11.221, concerning 
state program requirements. The section is amending the revegetated lands 
grazing requirements.
Ron Reeves, assistant director, Legal Division-Surface Mining, has determined 
that there will be no fiscal implications as a result of enforcing or 
administering the section.
Mr. Reeves also has determined that for each of the first five years the amended 
section as proposed is in effect the public benefits anticipated as a result of 
enforcing the section as proposed will be increased flexibility in reclamation 
land use requirements. 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 Ron Reeves, Assistant Director 
Legal Division-Surface Mining, Railroad Commission of Texas, P.O. Box 12967, 
Austin, Texas 78711-2967.
The amendment is proposed under Texas Civil Statutes, Article 5920-11, sec.6, 
which provide the Railroad Commission of Texas with the authority to promulgate 
rules pertaining to surface coal mining operations.
sec.11.221. State Program Regulations.
(a) The following rules contained in the document titled "State Program 
Submissions to Office of Surface Mining Reclamation and Enforcement, Department 
of Interior," as amended, prepared by the Railroad Commission of Texas and 
submitted to the Office of Surface Mining, are adopted by reference: Rules 051. 
07.04.001-.023, 069-.085, .100-.163, .170-.243, .300-.304, .306.-314, .317, . 
325-.328, <nl>.330-.393, .395-.422,<ol> [.330-.442,] .500-.591, .600, .610-.613, 
.620-.622, .624, .625, .650-.651, .660-.661, .670-.675, .680-.687, .690-.698, 
and .800-.817.
(b) The state program regulations are renumbered by commission Rule Adoption 
Order Number SMRD 2-87 by replacing the generic prefix number "051.07. 04" with 
new specific three-digit prefix numbers to identify the part in which each 
regulation is located: 700.001-.007, 701.008-.009, 705.010-.019, 707.020-. 022, 
708.023,760.0690-.070, 761.071-.072, 762.073-.077, 764.078-.085, 770.100-. 102, 
771.103-.108, 776.109-.115, 778.116-.123, 779.124-.138, 780.139-.154, 782. 155-
.163, 783.170-.184, 784.185-.199, 785.200-.205, 786.206-.221, 787.222-.223, 
788.224-.233, 795.234-.243, 800.300-.303, 805.304-.307, 806.308-.311, 807.312-. 
313, 808.314-.317, 815.325-.328,  <nl>816.330-.393, 816.395-422,<ol> [816.330-. 
422,] 817.500-.591, 819.600, 822.610-.613, 823.620-.625, 827.650-.651, 828.660-. 
661, 840.670-.675, 843.680-.687, 845.690-.698, and 850.700-.710.
(c) The Railroad Commission of Texas has published the state program 
regulations, as amended<nl>,<ol> [October 7, 1991,] in booklet form titled "Coal 
Mining Regulations." Copies may be obtained from the Surface Mining and 
Reclamation Division, P.O. Drawer 12967, Austin, Texas 78711-2967.
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 26, 1991.
TRD-9114819
Martha V. Swanger
Hearings Examiner-Gas Utilities-LP-Gas Section, Legal Division
Railroad Commission of Texas
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 463-6841
       
TITLE 28. INSURANCE
Part I. Texas Department of Insurance
Chapter 7. Corporate and Financial Regulation
Subchapter A. Examination and Corporate Custodian and Tax
28 TAC sec.7.51
(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 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 28 TAC sec.7.51, 
covering corporate and financial regulations. The section concerns forms and 
instructions for the preparation of 1982 tax returns by insurance companies and 
other principals. As a four-year statute of limitations applies to tax 
liability, the existing section is outdated and obsolete.
Phil Ballinger, director of tax administration, has determined that for the 
first five-year period the repeal is in effect there will be no fiscal 
implications for state or local government as a result of the repeal of the 
section.
Mr. Ballinger also has determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated will be efficiency in the 
administration of tax revenues. There is no anticipated economic loss to persons 
who are required to comply with the repeal as proposed.
Comments on the proposed repeal may be submitted to Phil Ballinger, director, 
tax administration, Mail Code 108-2A, Texas Department of Insurance, P.O. Box 
149104, Austin, Texas 78714-9104.
The repeal is proposed under the Texas Insurance Code, Articles 1.04, 1.10, 
sec.9, 1.14-1, 1.14-2, 1.35B, 4.07, 4.10, 4.11, 4.11A, 4.11B, 4.11C, 4.17, 5.12, 
5.24, 5.49, 5.68, 9.46, 9.59, 21.07-6, 21.54, and 23.08; the Texas Health 
Maintenance Organization Act, sec.22 and sec.33; and Texas Civil Statutes, 
Article 6252-13a, sec.4, and Article 8308, sec.2.22 and sec.11.09. The Insurance 
Code, Article 1.04, places original jurisdiction for the adoption of rules in 
the Texas Department of Insurance. Article 1.10, sec.9, requires the department 
to furnish to companies required to report to the department, statement blanks 
for the statements required. Article 1.14-1 requires payment of taxes on gross 
premiums written by unauthorized insurers. Article 1.14-2 requires payment of 
taxes on premiums written through surplus lines agents. Article 1.35B imposes an 
assessment for support of the Office of Public Insurance Counsel. Article 4.07 
specifies the charges for certain fees. The Insurance Code, Articles 4.10, 4.11, 
4.11B, 4.11C, 9.59, and 21.54; Texas Civil Statutes Article 8308, sec.2.22 and 
sec.11.09; and the Texas Health Maintenance Organization Act, sec.33, require 
payment of taxes on gross premiums by entities regulated by the department or on 
gross amounts of similar revenue by health maintenance organizations. The 
Insurance Code, Article 4.11A, requires the payment of taxes on the gross amount 
of administrative or service fees received by an insurance carrier. The 
Insurance Code, Articles 4.17, 5.12, 5.24, 5.49, 5.68, 9.46, 21.07-6, and 23.08, 
requires the payment of maintenance taxes by certain entities regulated by the 
department. The Insurance Code, Articles 4.10, 4.11, and 4.11A, gives the board 
rulemaking authority. The Texas Health Maintenance Organization Act, sec.22, 
gives the board rulemaking authority. Texas Civil Statutes, Article 6252-13a, 
sec.4, require and authorize the board to adopt rules of practice setting forth 
the nature and requirements of all procedures available.
sec.7.51. Preparation of 1982 Tax Returns.
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 26, 1991.
TRD-9114821
Linda K. von Quintus-Dorn
Chief Clerk
State Board of Insurance
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 463-6328
       
The State Board of Insurance proposes a new sec.7.51, concerning forms and 
instructions for the preparation and filing of tax returns for insurers and 
other entities required to file tax returns with the Texas Department of 
Insurance for the 1991 calendar year or required to file quarterly premium tax 
returns with the department during the 1992 calendar year. The new section is 
necessary to provide insurers and other entities with forms and instructions for 
filing tax returns. Timely and accurate payment of taxes is necessary for 
support of regulatory functions of the Texas Department of Insurance. The new 
section adopts forms and instructions which facilitate compliance with statutory 
requirements for reporting and payment of taxes to the Texas Department of 
Insurance. The annual gross premium tax returns are required by statute to be 
filed either on or before March 1, 1992, or the date the annual statement for 
the carrier is required to be filed with the department. Quarterly tax returns 
are required to be filed four times per year: the first quarter is due and 
payable March 1, 1992 (or the date the annual statement for such carrier is 
required to be filed with the Texas Department of Insurance); the second quarter 
is due and payable May 15, 1992, the third quarter is due and payable August 15, 
1992; and the fourth quarter is due and payable November 15, 1992. The forms and 
instructions include requirements for information respecting gross premium 
taxes, maintenance taxes, and other taxes, and certain incidental fees and 
provide a form to be used in determining and reporting the amount owed. Proposal 
of this section includes proposal for adoption by reference of forms and 
instructions. The board has filed copies of these forms and instructions with 
the Secretary of State's Office, Texas Register Section. Persons desiring copies 
of the forms and instructions can obtain copies from Tax Administration, Texas 
Department of Insurance, Tower 1, Room 808, 333 Guadalupe Street, Austin.
Phil Ballinger, director of tax administration, has determined that, for the 
first five-year period the proposed section will be in effect, there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the section, and there will be no effect on local employment or 
local economy. The cost of compliance for small businesses will be the 
administrative cost in completing the forms and following the instructions. This 
cost will be at least partially offset because tax returns are statutorily 
required in some form in any case. There is no expected difference in cost of 
compliance between small and large businesses on the basis of cost per hour of 
labor.
Mr. Ballinger also has determined that, for each year of the first five years 
the section is in effect, the public benefit anticipated as a result of 
enforcing the section will be the adoption of appropriate forms and instructions 
to facilitate proper tax returns by insurers and other entities required to 
report and pay taxes to the Texas Department of Insurance. The anticipated 
economic cost to persons who are required to comply with the proposed section 
will be the administrative cost in completing the forms and following the 
instructions. This cost will be at least partially offset because tax returns 
are statutorily required in some form in any case. The cost will depend on each 
company's recordkeeping practices and type of operation.
Comments on the proposal may be submitted to Phil Ballinger, director, tax 
administration, Mail Code 108-2A, Texas Department of Insurance, P.O. Box 
149104, Austin, Texas 78714-9104.
The new section is proposed under the Texas Insurance Code, Articles 1.04, 1. 
10, sec.9, 1.14-1, 1.14-2, 1.35B, 4.07, 4.10, 4.11, 4.11A, 4.11B, 4.11C, 4.17, 
5. 12, 5.24, 5.49, 5.68, 9.46, 9.59, 21.07-6, 21.54, and 23.08; the Texas Health 
Maintenance Organization Act, sec.22 and sec.33; and Texas Civil Statutes, 
Article 6252-13a, sec.4, and Article 8308, sec.2.22 and  s11.09. The Insurance 
Code, Article 1.04, places original jurisdiction for the adoption of rules in 
the Texas Department of Insurance. Article 1.10, sec.9, requires the department 
to furnish to companies required to report to the department, statement blanks 
for the statements required. Article 1.14-1 requires payment of taxes on gross 
premiums written by unauthorized insurers. Article 1.14-2 requires payment of 
taxes on premiums written through surplus lines agents. Article 1.35B imposes an 
assessment for support of the Office of Public Insurance Counsel. Article 4.07 
specifies the charges for certain fees. The Insurance Code, Articles 4.10, 4.11, 
4.11B, 4.11C, 9.59, and 21.54; Texas Civil Statutes Article 8308, sec.2.22 and 
sec.11.09; and the Texas Health Maintenance Organization Act, sec.33, require 
payment of taxes on gross premiums by entities regulated by the department or on 
gross amounts of similar revenue by health maintenance organizations. The 
Insurance Code, Article 4.11A, requires the payment of taxes on the gross amount 
of administrative or service fees received by an insurance carrier. The 
Insurance Code, Articles 4.17, 5.12, 5.24, 5.49, 5.68, 9.46, 21.07-6, and 23.08, 
requires the payment of maintenances taxes by certain entities regulated by the 
department. The Insurance Code, Articles 4.10, 4.11, and 4.11A, gives the board 
rulemaking authority. The Texas Health Maintenance Organization Act, sec.22, 
gives the board rulemaking authority. Texas Civil Statutes, Article 6252-13a, 
sec.4, require and authorize the board to adopt rules of practice setting forth 
the nature and requirements of all procedures available.
sec.7.51. Preparation of 1991 Tax Returns. Forms and instructions for the 
preparation of tax return and certain fees for insurance companies and other 
principals for the 1991 calendar year are adopted by reference. These 
instructions and forms are published by the Texas Department of Insurance and 
may be obtained from Tax Administration of the Texas Department of Insurance, 
Tower 1, Room 808, 333 Guadalupe Street, Austin. Each insurer or other entity 
shall follow such instructions and use and report on such forms as appropriate 
to its operation. The instructions and forms are more particularly identified as 
follows:
(1) a form identified as the 1991 General Instructions for Filing the 1991 Texas 
Annual Tax Return for All Texas Licensed Insurance Carriers;
(2) a form identified as the Specific Instructions for Completing the 1991 Texas 
Annual Tax Return for Domestic, Foreign, and Alien Carriers Transacting Life, 
Health, and Accident Business;
(3) a form identified as the 1991 Texas Annual Tax Return for Domestic, Foreign, 
and Alien Carriers Transacting Life, Health, and Accident Business;
(4) a form identified as the Specific Instructions for Completing the 1991 Texas 
Annual Tax Return for Domestic, Foreign, and Alien Carriers Transacting Property 
and Casualty Business;
(5) a form identified as the 1991 Texas Annual Tax Return for Domestic, Foreign, 
and Alien Carriers, Lloyds, Reciprocals, and Miscellaneous Organizations 
Transacting Property and Casualty Business;
(6)  a form identified as the Specific Instructions for Completing the 1991 
Texas Annual Tax Return for Health Maintenance Organizations;
(7) a form identified as the 1991 Texas Annual Tax Return for Health Maintenance 
Organizations;
(8) a form identified as the 1991 Texas Annual Tax Return, including 
instructions, for Nonprofit Prepaid Legal Services Organizations;
(9) a form identified as the 1991 Texas Annual Tax Return, including 
instructions, for Local Mutual Aid Associations;
(10)  a form identified as the Specific Instructions for Preparing and Filing 
the 1992 Texas Quarterly Premium Tax Return for Domestic, Foreign, and Alien 
Carriers Transacting Life, Health, and Accident Business;
(11) a form identified as the 1992 Texas Quarterly Premium Tax Return for Life, 
Health, and Accident Insurance Carriers;
(12) a form identified as the Specific Instructions for Preparing and Filing the 
1992 Texas Quarterly Premium Tax Return for Domestic, Foreign, and Alien 
Carriers Transacting Property and Casualty Business;
(13) a form identified as the 1992 Texas Quarterly Premium Tax Return for 
Property and Casualty Insurance Carriers;
(14) a form identified as the Specific Instructions for Preparing and Filing the 
1992 Texas Quarterly Premium Tax Return for Health Maintenance Organizations;
(15) a form identified as the 1992 Texas Quarterly Premium Tax Return for Health 
Maintenance Organizations;
(16) a form identified as the Specific Instructions for Preparing and Filing the 
1992 Texas Quarterly Premium Tax Return for Domestic, Foreign, and Alien 
Carriers Transacting Title Business;
(17) a form identified as the 1992 Texas Quarterly Premium Tax Return for Title 
Insurance Carriers;
(18) a form identified as the Instructions for Completing the 1991 Texas Annual 
Tax Return, for carriers operating under the Insurance Code, Article 3.25 and 
3.59;
(19) a form identified as the 1991 Texas Annual Tax Return, for carriers 
operating under the Insurance Code, Articles 3.25 and 3.59;
(20) a form identified as the 1991 Texas Maintenance Tax Return, including 
instructions, for Third Party Administrators;
(21) a form identified as the 1992 Specific Instructions for Preparing and 
Filing the Texas Quarterly Administrative Services Tax Return;
(22) a form identified as the 1992 Texas Quarterly Tax Return for Administrative 
Services;
(23) a form identified as the General Instructions and Specific Instructions for 
Completing the 1991 Texas Annual Tax Return for Administrative Services;
(24) a form identified as the 1991 Texas Annual Tax Return for Administrative 
Services;
(25) a form identified as the Specific Instructions for Completing the 1991 
Texas Annual Tax Return for Title Business;
(26) a form identified as the 1991 Texas Annual Tax Return for Domestic and 
Foreign Title Carriers;
(27) a form identified as the 1991 Instructions for Filing the Annual Tax Return 
of Insured Applicable to Independently Procured Insurance (FT-1);
(28) a form identified as the 1991 Texas Annual Tax Report of Insured Applicable 
to Independently Procured Insurance;
(29) a form identified as the 1991 Instructions for Filing the Annual Purchasing 
Group Premium Tax Report;
(30) a form identified as the 1991 Texas Annual Purchasing Group Premium Tax 
Report; and
(31) a form identified as the 1991 Specific Instructions for Filing the 1991 
Texas Annual and 1992 Texas Quarterly Tax Returns for Registered Risk Retention 
Groups.
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-9114822
Linda K. von Quintus-Dorn
Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: January 6, 1992
For further information, please call: (512) 463-6328
       
TITLE 31. NATURAL RESOURCES AND CONSERVATION
Part X. Texas Water Development Board
Chapter 367. Agricultural Water Conservation Program
Agricultural Water Conservation Loan Program
31 TAC sec.sec.367.70-367.79
The Texas Water Development Board (the board) proposes new 31 TAC sec.sec.367. 
70-367.79, concerning general application procedures for water conservation 
loans.
The new sections are proposed to implement the board's agricultural water 
conservation loan program (the program). The program allows the board or lender 
districts to make conservation loans for capital equipment or materials, labor, 
preparation costs, and installation costs to improve water use efficiency of 
water delivery and application on existing irrigation systems, for preparing 
irrigated land to be converted to dryland conditions or for preparing dryland 
for more efficient use of natural precipitation.
Susan Morgan, director of finance, has determined that for the first five-year 
period the new sections will be in effect, there will not be fiscal implications 
for state or local government or small businesses as a result of enforcing or 
administering the sections.
Ms. Morgan also has determined that for each year of the first five years the 
sections will be in effect, the public benefit anticipated as a result of 
enforcing the rules will be the conservation of water used for agricultural 
irrigation and a resulting increase in the availability of water in Texas. There 
will be no effect on small businesses. There will be no economic cost to persons 
who are required to comply with the sections as proposed.
The agency has determined there will be no possible impact on local economies.
Written comments on the proposal must be received by January 7, 1992, and should 
be submitted to Mr. Comer Tuck, Policy and Conservation Section, P.O. Box 13231, 
Austin, Texas 78711.
The amendments are proposed under the Texas Water Code,  s6.101, and sec.17. 
903, which requires the board to adopt rules necessary to carry out the powers 
and duties of the board.
sec.367.70. Policy Statement. <ol> It is the policy of the board to implement an 
agricultural water conservation loan program in order to conserve the state's 
water resources and provide resulting benefits to all of the state's citizens.
sec.367.71. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise.
 Board-The Texas Water Development Board.
 Borrower district -A district or authority created under Article III, 
sec.52(b)(1) and (2), or Article XVI, sec.59, of the Texas Constitution, that 
receives or is eligible to receive a conservation loan from the board for 
improvement to district facilities.
 Conservation loan -A loan from the board to a borrower district or from a 
lender district to an individual borrower.
 Development fund manager-The development fund manager of the Texas Water 
Development Board.
 Executive administrator -The executive administrator of the Texas Water 
Development Board.
 Fund-The agricultural water conservation fund.
 Individual borrower -A person who receives or is eligible to receive a 
conservation loan from a lender district.
 Lender district -A soil and water conservation district under Chapter 201, 
Agriculture Code, an underground water conservation district created under 
Article XVI, sec.59, of the Texas Constitution, or a district or authority 
created under Article III, sec.52(b)(1), or Article XVI, sec.59, of the Texas 
Constitution authorized to supply water for irrigation purposes, that is 
eligible to receive or that receives a loan from the board for the purpose of 
making conservation loans to individual borrowers.
sec.367.72. Purpose.  In accordance with the Texas Water Code, sec.17.894, the 
board may use money in the fund to make conservation loans directly to borrower 
districts, to make loans to lender districts, and to pay the cost of bond 
issuance.
sec.367.73. Guidelines.
(a) The board or lender districts may make conservation loans for capital 
equipment or materials, labor, preparation costs, and installation costs:
(1) to improve water use efficiency of water delivery and application on 
existing irrigation systems;
(2) for preparing irrigated land to be converted to dryland conditions; or
(3)  for preparing dryland for more efficient use of natural precipitation.
(b) Conservation loans for the purposes listed in subsection (a) of this section 
may be made by lender districts to individual borrowers for use on private 
property or by the board to borrower districts for use on district facilities.
sec.367.74. Interest Rates and Fees. The board shall establish the rate of 
interest it charges for loans to lender districts or for conservation loans to 
borrower districts.
sec.367.75. Applications.  A lender district that desires to obtain loans or a 
borrower district that desires to obtain conservation loans under this 
subchapter shall file an application with the executive administrator through 
the development fund manager. The application shall be consistent with the 
application guidelines which are available from the Development Fund Manager. An 
application shall include information on the following:
(1)  origination and description of the district;
(2) fiscal information with a plan for repayment to the board of the loan, 
including a plan for repayment in the event of default;
(3) the district shall specify the amount, period, and intended use of the loan;
(4) the district's rules or procedures for approving borrower's loan 
applications and for approving and managing lender-borrower agreements;
(5) for lender districts, rules or procedures for identifying the methods to be 
used by the lender district to ensure the financial integrity of a loan to an 
individual borrower. Such methods may include, but not be limited to, an 
irrevocable letter of credit or a lien on property in excess of value of 
improvements;
(6) executive administrator may request additional information necessary to 
evaluate the loan application.
sec.367.76. Review and Approval of Application.  The executive administrator 
shall review all applications for eligibility and completeness. After the 
executive administrator considers an application from a borrower or lender 
district, if the executive administrator finds that the district is able to 
perform the purpose(s) of the loan application and that the district agrees to 
comply with rules adopted by the board under this chapter, the executive 
administrator shall place the item on the board's agenda with a recommendation 
concerning granting or denying the application. The board shall approve or 
disapprove the loan application.
sec.367.77. Priority in Expenditure of Funds.  When applica- tions for 
conservation loans exceed available funds, priority will be given to those areas 
of the state that have the most critical water conservation needs and to the 
activities that will be most likely to produce substantial agricultural soil and 
water conservation.
sec.367.78. Default and Foreclosure by Lender Districts.
(a) In the event of a default in payment of a conservation loan made by a lender 
district or the failure of an individual borrower to perform any of the terms or 
conditions of the conservation loan agreement, the lender district shall pursue 
all remedies available under law, including without limitation foreclosure under 
the conservation loan agreement and liquidation of any collateral provided under 
the conservation loan agreement. The lender district shall sell the collateral 
on terms and subject to procedures that it follows in liquidating other 
collateral.
(b) Foreclosure under a conservation loan agreement shall be accomplished in the 
manner provided by law for foreclosure of similar loan agreements made by 
private lending institutions and by the conservation loan agreement.
(c) The state guarantees to each lender district that in the event an individual 
borrower defaults on a conservation loan made by the lender district with money 
from this program, the state will assume 50% of the amount that remains due and 
payable under the default after all collateral for the conservation loan is 
liquidated.
(d) The state is entitled to recover its pro rata share of any money recovered 
on a defaulted conservation loan on which the state has assumed liability under 
subsection (c) of this section.
sec.367.79. Audits.  The executive administrator may request certified copies of 
all minutes, operating budgets, monthly operating statements, contracts with 
borrowers, audit reports and other documents concerning the operation of the 
district's financial programs and this loan program.
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 27, 1991.
TRD-9114966
Suzanne Schwartz
General Counsel
Texas Water Development Board
Earliest possible date of adoption: January 6, 1991
For further information, please call: (512) 463-7981
       
TITLE 40. SOCIAL SERVICES AND ASSISTANCE
Part I. Texas Department of Human Services
Chapter 8. Home Energy Assistance Program (HEAP)
Program Requirements
40 TAC sec.8.2
The Texas Department of Human Services (DHS) proposes an amendment to sec.8. 2, 
concerning Home Energy Assistance Program (HEAP) eligibility criteria. The 
purpose of the amendment is to adjust the income eligibility criteria to reflect 
the 1991 annual update to the federal poverty income guidelines.
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 income guidelines for the HEAP program that incorporate last 
year's increase in prices as measured by the Consumer Price Index. 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 the proposal may be directed to Angela Holland at 
(512) 483-7263 in DHS's Centralized Service Delivery Section. Comments on the 
proposal may be submitted to Nancy Murphy, Policy and Document Support-318, 
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 provides the department with the authority to administer public assistance 
programs.
sec.8.2. Home Energy Assistance Program (HEAP) Eligibility Criteria.
(a) (No change.)
(b) For the three benefit levels specified in sec.8.6 of this title (relating to 
Benefit Amount), household income limits for HEAP are listed in the following 
chart. For households with more than eight members, the limits increase by $62, 
$125, and $214 for each additional member.
[graphic]
(c)-(f) (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 December 2, 1991.
TRD-9114967
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 10. Family Self-Support Services
Title IV-A Funded Child Care TAC Section Number(s)
(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 Human Resources or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Human Services (DHS) proposes the repeal of 
sec.sec.10.3325 and 10.3340-10.3347, concerning Title IV-A Funded Child Care, 
and sec.sec.10.3501-10.3507, concerning Child Care Management Services (CCMS) 
Field Test, in its family self-support services chapter. The purpose of the 
repeal of sec.sec.10.3325 and 10.3340-10.3347 is to delete rules that have been 
replaced by new rules implementing the CCMS system. The purpose of the repeal of 
sec.sec.10. 3501-10.3507 is to delete rules for the CCMS Field Test that has 
been completed.
Burton F. Raiford, interim commissioner, 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.
Mr. Raiford 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 to remove obsolete rule material. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the proposed repeals.
Questions about the content of this proposal may be directed to Mary Beth 
O'Hanlon at (512) 450-4169 in DHS's Client Self-Support Section. Comments on the 
proposal may be submitted to Nancy Murphy, Policy and Document Support- 336, 
Texas Department of Human Services E-503, P.O. Box 149030, Austin, Texas 78714-
9030, within 30 days of publication in the Texas Register .
40 TAC sec.sec.10.3325, 10.3340-10.3347
The repeals are proposed under the Human Resources Code, Title 2, Chapters 22 
and 44, which authorizes the department to administer public assistance and day 
care programs.
sec.10.3325. Minimum Age Requirement for Unregulated Providers of Self-arranged 
Child Care.
sec.10.3340. General Information.
sec.10.3341. Eligibility for Job Opportunities and Basic Skills (JOBS) Related 
Child Care.
sec.10.3342. Hours of Care.
sec.10.3343. Parent or Caretaker Fees.
sec.10.3344. Child Care While Awaiting Job Opportunities and Basic Skills (JOBS) 
Activities.
sec.10.3345. Child Care during On-the-Job Training (OJT).
sec.10.3346. Client Eligibility for Post-employment Child Care Services.
sec.10.3347. Sanctions.
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 December 2, 1991.
TRD-9114968
Nancy Murphy
Agency liaison, Policy and Document Support
Texas Department of Human Services
Proposed date of adoption: February 17, 1992
For further information, please call: (512) 450-3765
       
Child Care Management Services Field Test
40 TAC sec.sec.10.3501-10.3507
(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 Human Services or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeals are proposed under the Human Resources Code, Title 2, Chapters 22 
and 44, which authorizes the department to administer public assistance and day 
care programs.
sec.10.3501. Child Care Management Services (CCMS) Field Test Period.
sec.10.3502. Child Care Management Services (CCMS) Contractor Characteristics.
sec.10.3503. Method of Payment.
sec.10.3504. Child Care Management Services (CCMS) Contractor Responsibilities.
sec.10.3505. Procedures for Phasing in Vendors.
sec.10.3506. Termination procedures.
sec.10.3507. Liability Insurance Requirement.
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 December 2, 1991.
TRD-9114969
Nancy Murphy
Agency liaison, Policy and Document Support
Texas Department of Human Services
Proposed date of adoption: February 17, 1992
For further information, please call: (512) 450-3765
       
Chapter 29. Purchased Health Services
Subchapter D. Medicaid Home Health Program
The Texas Department of Human Services (DHS) proposes amendments to sec.29.301 
and sec.29.607, concerning a requirement for advanced directives in its 
Purchased Health Services chapter. The amendment results from requirements of 
the Omnibus Budget Reconciliation Act of 1990, sec.4751. The purpose of the 
amendments are to clarify that hospitals and home health agencies participating 
in the Texas Medical Assistance Program must furnish adult individuals with 
information regarding their right to make and/or transfer treatment decisions. 
The information includes the individuals' right to make known their decisions 
regarding their medical care through verbal or written and properly executed 
directives, such as Advance Directives to Physicians/Living Will and Durable 
Powers of Attorney for Health Care.
The Omnibus Budget Reconciliation Act requires DHS to supply to providers 
information about individuals' right to give directives about their own medical 
care. However, it is inappropriate for DHS to recommend to providers the use of 
these directives in individual cases. Individuals who desire this advice should 
contact their attorney or legal aid society. When an individual has issued no 
directive, has no legal guardian, and has been determined by the physician to be 
incapable of understanding and exercising his rights, treatment decisions must 
be made according to the Texas Natural Death Act sec.672.009.
Burton F. Raiford, interim commissioner, has determined that for the first five-
year period the sections are in effect there will be no fiscal implications for 
state or local government as a result of enforcing or administering the 
sections.
Mr. Raiford 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 that recipients will be informed regarding their rights to 
give advance directives upon admission to a hospital or prior to receiving 
services of the home health agency. There will be no effect on small businesses. 
There is no anticipated economic cost to persons who are required to comply with 
the sections as proposed.
Questions about the content of this proposal may be directed to Kay Sterling at 
(512) 339-6511 in DHS's Purchased Health Services. Comments on the proposal may 
be submitted to Nancy Murphy, Agency Liaison, Policy and Document Support-287, 
Texas Department of Human Services E-503, P.O. Box 149030, Austin, Texas 78714-
9030, within 30 days of publication in the Texas Register.
40 TAC sec.29.301
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.29.301. Provider Participation Requirements. The following conditions must 
be met to establish qualification for participation as a Title XIX home health 
agency in the Medicaid Home Health Program:
(1)-(2) (No change.)
<nl>(3) Effective December 1, 1991, the home health agency must maintain 
policies and procedures regarding the following policies with respect to all 
adult individuals receiving services provided by the agency:
<nl>(A) provide all individuals the following information regarding advance 
directives prior to the time the individuals come under the care of the agency:
<nl>(i)<nl>the individual's rights under Texas law, whether statutory or as 
recognized by the courts of the state, to make decisions concerning medical 
care, including the right to accept or refuse medical or surgical treatment and 
the right to formulate advance directives (Directive to Physicians/Living Will 
or Durable Power of Attorney for Health Care); and
<nl>(ii) <nl>the agency's policies respecting the implementation of such rights;
<nl>(B) document in the individual's medical record whether or not the 
individual has executed an advance directive;
<nl>(C)  not condition the provision of care or otherwise discriminate against 
an individual based on whether or not the individual has executed an advance 
directive;
<nl>(D) ensure compliance with the requirements of Texas law, whether statutory 
or as recognized by the courts of Texas, respecting advance directives at 
facilities of the provider or organization; and
<nl>(E) provide for education for staff and the community on issues concerning 
advance directives.
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 25, 1991.
TRD-9114763
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
       
Subchapter G. Hospital Services
40 TAC sec.29.607
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.29.607. Provider Participation <nl>Requirements.
<nl>(a) A hospital must be licensed by the Texas Department of Health or the 
appropriate licensing authority as an acute care, general, or special hospital. 
A hospital must be enrolled and participating in the Medicare Program as a 
hospital to participate in the Texas Medical Assistance Program (Medicaid). The 
hospital must also sign a written provider agreement with the department or its 
designee to participate in the Texas Medical Assistance Program. The provider 
agreement is prescribed by the department or its designee. By signing the 
provider agreement, the hospital agrees to comply with the terms of the 
agreement and all requirements of the Texas Medical Assistance Program, 
including regulations, rules, handbooks, standards, and guidelines published by 
the department or its designee. The hospital also agrees to comply with the 
utilization review plan approved by the department or its designee.
<nl>(b) Effective December 1, 1991, the hospital must maintain policies and 
procedures regarding the following policies with respect to all adult 
individuals receiving inpatient services provided by the hospital:
<nl>(1)  provide all adult individuals the following information regarding 
advance directives at the time of the individual's admission as an inpatient:
<nl>(A) the individual's rights under Texas law, whether statutory or as 
recognized by the courts of the state, to make decisions concerning medical 
care, including the right to accept or refuse medical or surgical treatment and 
the right to formulate advance directives (Directive to Physicians/Living Will 
or Durable Power of Attorney for Health Care); and
<nl>(B) the hospital's policies respecting the implementation of such rights;
<nl>(2)  document in the individual's medical record whether or not the 
individual has executed an advance directive;
<nl>(3) not condition the provision of care or otherwise discriminate against an 
individual based on whether or not the individual has executed an advance 
directive;
<nl>(4) ensure compliance with the requirements of Texas law, whether statutory 
or as recognized by the courts of Texas, respecting advance directives at 
facilities of the provider or organization; and
<nl>(5) provide for education for staff and the community on issues concerning 
advance directives.
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 25, 1991.
TRD-9114764
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
       
TITLE 43. TRANSPORTATION
Part I. Texas Department of Transportation
Chapter 1. Administration
Advisory Committees
43 TAC sec.sec.1.80-1.84
The Texas Department of Transportation proposes new sec. s1.80-1.84, concerning 
advisory committees. Senate Bill 352, 72nd Legislature, Regular Session, 1991, 
and House Bill 9, 72nd Legislature, 1st Called Session, 1991 created four 
advisory committees regarding aviation, bicycles, the environment, and public 
transportation. The legislature authorized the commission to adopt rules 
governing the operations of each advisory committee it created. These rules 
provide uniform procedures applicable to all advisory committees to ensure that 
all committees are operated in a similar manner. The new sections prescribe the 
purpose, operation and procedures, and responsibilities, of advisory committees.
Robert E. Shaddock, general counsel, has determined that there will be no fiscal 
implications as a result of enforcing or administering the sections.
Mr. Shaddock has certified that there will be no significant impact on local 
economies or overall employment as a result of enforcing or administering the 
proposed sections.
Mr. Shaddock also has determined that for each of the first five years the 
amended section as proposed is in effect the public benefits anticipated as a 
result of enforcing the section as proposed will be the orderly, efficient, and 
uniform operation of commission advisory committees. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the proposed new sections.
Comments on the proposed new sections may be submitted to Robert E. Shaddock, 
General Counsel, Texas Department of Transportation, 125 East 11th Street, 
Austin, Texas 78701.
The new sections are proposed under Texas Civil Statutes, Article 6666, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of work of the Texas Department of Transportation, and 
more specifically by Texas Civil Statutes, Articles 46c-3, 6663b, 6673g, and 
6673h, which create the four advisory committees and authorize the commission to 
adopt rules to govern the operations of those committees.
sec.1.80. Scope and Purpose. The sections under this undesignated head prescribe 
the uniform procedures governing the operation of, and responsibilities for, 
advisory committees created by the Texas Transportation Commission or by statute 
to advise the Texas Transportation Commission.
sec.1.81. Definitions.  The following words and terms, when used in this 
undesignated head, shall have the following meanings, unless the context clearly 
indicates otherwise.
 Advisory committee -Any committee created by the commission or created by 
statute for the purpose of providing advice or recommendations in a purely 
advisory manner regarding certain matters within the jurisdiction of the 
commission.
 Aviation Advisory Committee-The advisory committee created pursuant to Texas 
Civil Statutes, Article 46c-3, to advise the commission and the department on 
aviation matters.
 Bicycle Rules Advisory Committee-The advisory committee created pursuant to 
Texas Civil Statutes, Article 6673h, to advise the commission on the adoption of 
rules regarding bicycle road use on the state highway system.
 Commission-The Texas Transportation Commission.
 Department-The Texas Department of Transportation.
 Environmental Advisory Committee-The advisory committee created pursuant to 
Texas Civil Statutes, Article 6673g, to advise the commission on rules of the 
department that may affect the environment.
 Executive director -The chief administrative officer of the Texas Department of 
Transportation.
 Public Transportation Advisory Committee-The advisory committee created 
pursuant to Texas Civil Statutes, Article 6663b, to advise the commission on 
public transportation matters.
sec.1.82. Advisory Committee Operations and Procedures.
(a)  Membership.
(1) Except as provided in paragraphs (2) and (3) of this subsection, the 
commission will:
(A) appoint advisory committee members for a two-year term, and will designate 
one member to serve as chair; and
(B) appoint members to serve the balance of any term upon the occurrence of a 
vacancy.
(2) Members of the Environmental and Public Transportation Advisory Committees 
shall be appointed and shall serve pursuant to Texas Civil Statutes, Article 
6663b and Texas Civil Statutes, Article 6673g, respectively.
(3) Members of the Bicycle Rules Advisory Committee shall serve until the 
committee is abolished as provided by Texas Civil Statutes, Article 6673h.
(b) Meetings.
(1) Open meeting requirements. Advisory committees shall post and hold all 
meetings in accordance with the provisions applicable to meetings of the 
commission under the Texas Open Meetings Act, Texas Civil Statutes, Article 
6252-17. Filing of notice of open meetings with the Secretary of State shall be 
coordinated through the department's Office of the General Counsel.
(2) Regular meetings. Advisory committees shall meet annually except that the 
Public Transportation Advisory Committee shall meet quarterly. Advisory 
committees shall also meet at the request of the commission and as required by 
sec.1.84 of this title (relating to Rulemaking). The chair of the committee 
shall provide notice of time, date, place, and purpose of regular meetings to 
the members and the executive director, by mail or telephone or both, at least 
14 calendar days in advance of each meeting.
(3) Quorum. A majority of the membership of an advisory committee constitutes a 
quorum. The committee may act only by majority vote of its membership.
(4) Attendance. A record of attendance at each meeting shall be made. If a 
member of a committee appointed by the commission misses two consecutive 
meetings, written notice shall be given to the member. A third consecutive 
absence from a regular meeting will be sufficient grounds for removal of that 
member by the commission.
(5) Parliamentary procedure. Parliamentary procedures for all committee meetings 
shall be in accordance with the latest edition of Roberts Rules of Order<ol>, 
except that the chairperson may vote on any action as any other member of the 
committee.
(6) Record. Minutes of all committee meetings shall be prepared and filed with 
the commission. The complete proceedings of all committee meetings must also be 
recorded by electronic means.
(7) Open records. All minutes, transcripts, and other records of the advisory 
committees are records of the commission and as such are subject to disclosure 
under the provisions of Texas Civil Statutes, Article 6252-17a.
(c) Reimbursement. Advisory committee members are not entitled to receive 
compensation for serving as members, but will be reimbursed for reasonable and 
necessary expenses for performing their duties. Current rules and laws governing 
reimbursement of expenses for state employees shall govern reimbursement for 
expenses of advisory committee members.
(d) Conflict of interest. Advisory committee members are subject to the same 
laws and policies governing ethical standards of conduct as those for commission 
members and employees of the department.
(e)  Administrative support. For each advisory committee, the executive director 
will designate an office of the department that will be responsible for 
providing any necessary administrative support essential to the functions of the 
committee.
(f) Advisory committee recommendations. In developing department policies, the 
commission will consider the recommendations submitted by advisory committees.
sec.1.83. Advisory Committee Responsibilities.
(a) Advisory committees created by the commission. The responsibilities of 
advisory committees that are created by the commission will be prescribed by 
order of the commission.
(b) Public Transportation Advisory Committee. The responsibilities of the Public 
Transportation Advisory Committee will include:
(1) advising the commission on the needs and problems of the state's public 
transportation providers, including recommending methods for allocating state 
public transportation funds if the allocation methodology is not specified by 
statute;
(2) commenting on proposed rules or rule changes involving public transportation 
matters during their development and prior to their final adoption unless an 
emergency requires immediate action by the commission; and
(3) performing other duties as determined by order of the commission.
(c) Bicycle Rules Advisory Committee. The responsibilities of the Bicycle Rules 
Advisory Committee will include:
(1) advising the commission on the adoption of rules regarding bicycle road use 
on the state highway system; and
(2) performing other duties as determined by order of the commission.
(d) Environmental Advisory Committee. The responsibilities of the Environmental 
Advisory Committee will include:
(1)  advising the commission on rules of the department that may affect the 
environment; and
(2) performing other duties as determined by order of the commission.
(e) Aviation Advisory Committee. The responsibilities of the Aviation Advisory 
Committee will include:
(1) periodically reviewing the adopted capital improvement program;
(2) advising the commission on the preparation and adoption of an aviation 
facilities development program;
(3) advising the commission on the establishment and maintenance of a method for 
determining priorities among locations and projects to receive state financial 
assistance for aviation facility development;
(4) advising the commission on the preparation and update of a multi-year 
aviation facilities capital improvement program; and
(5)  performing other duties as determined by order of the commission.
sec.1.84. Rulemaking.
(a) Purpose. This section governs the role of an advisory committee in the 
adoption of new or amended rules pursuant to the Administrative Procedure and 
Texas Register Act, Texas Civil Statutes, Article 6252-13a.
(b) Preliminary review. When the department determines that it is necessary or 
desirable for the commission to adopt new or amended rules, the department will:
(1) notify the relevant advisory committee, if any, of the nature of the 
rulemaking, including the reasons for the rules and the general subjects to be 
covered; and
(2) request the chair of the committee to call a meeting of the relevant 
advisory committee for the purpose of providing advice and recommendations prior 
to drafting the text of the proposed rules.
(c) Review. Upon completing a final draft of proposed rules that are subject to 
this section and prior to submitting the draft to the commission, the department 
will request the chair to call a meeting of the relevant advisory committee to 
review and comment on the rules as drafted.
(d) Comment. Prior to commission adoption of rules that are subject to this 
section, the commission will provide the advisory committee and department staff 
an opportunity to appear before it for the purpose of advising the commission of 
its recommendations regarding the proposed rules.
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 25, 1991.
TRD-9114768
Diane L. Northam
Legal Administrative Assistant
Texas Department of Transportation
Earliest possible date of adoption: January 6, 1991
For further information, please call: (512) 463-8630
       
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 8:30 a.m., 
January 8, 1992, in Room 100 of the Texas Department of Insurance Building, 333 
Guadalupe Street in Austin, will consider adopting physical damage rating 
symbols in the Texas Automobile Manual for certain adjusted 1991 model private 
passenger automobiles. The symbols adopted were developed from manufacturer list 
price data and adjusted in accordance with the prescribed vehicle series rating 
rule contained in the Symbol and Identification Section of the Texas Automobile 
Manual ford 1990 models and subsequent models. The amendments are to be 
effective on the 60th day after notice of the board's action is published in the 
adopted rule section of the Texas Register.
Copies of the full text of the proposed amendments to the Texas Automobile 
Manual are available for review in the Office of the Chief Clerk of the Texas 
Department of Insurance, 333 Guadalupe Street, Austin.
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 25, 1991.
TRD-9114805
Linda von K. Quintus-Dorn
Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328
       
The State Board of Insurance, at a board meeting scheduled for 8:30 a.m., 
January 8, 1992, in Room 100 of the Texas Department of Insurance Building, 333 
Guadalupe Street in Austin, will consider adopting physical damage rating 
symbols in the Texas Automobile Manual for certain 1990 and 1991 model private 
passenger automobiles. The symbols adopted were developed from manufacturer list 
price data and adjusted in accordance with the prescribed vehicle series rating 
rule contained in the Symbol and Identification Section of the Texas Automobile 
Manual for 1990 models and subsequent models. The amendments are to be effective 
on the 60th day after notice of the board's action is published in the adopted 
rule section of the Texas Register.
Copies of the full text of the proposed amendments to the Texas Automobile 
Manual are available for review in the Office of the Chief Clerk of the Texas 
Department of Insurance, 333 Guadalupe Street, Austin.
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 25, 1991.
TRD-9114806
Linda von K. Quintus-Dorn
Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328
       
The State Board of Insurance will consider adopting the new Texas Automobile 
Rules and Rating Manual and amending the Automobile Liability Experience Rating 
Plan, at a meeting scheduled for 8:30 a.m., January 8, 1992.
These amendments are being made primarily as a result of a new statute 
designated as House Bill 2 in the 1991 regular session of the legislature. That 
statute added to the Insurance Code a new Article 5.101, of which sec.3(g)(1) 
requires the board to adopt "a rating manual of classifications and territories 
for each line subject to" the Insurance Code, Chapter 5, Subchapter M. 
Automobile insurance is a line that is subject to the newly created Subchapter 
M, and one function of this Board Order is to revise and to rename the Manual as 
the Texas Automobile Rules and Rating Manual (the Rating Manual).
House Bill 2 also amended the Insurance Code, Article 5.06(1) to require the 
Board to adopt a policy form and endorsements for each type of motor vehicle 
insurance subject to the Insurance Code, Chapter 5, Subchapter A. The coverage 
provided by such a form is the minimum coverage that may be provided under an 
insurance policy for that type of insurance in this state. The Order so amends 
the endorsements in the Endorsement Supplement of the Rating Manual.
The other major function of the Board Order is to revise the Automobile 
Liability Experience Rating Plan for experience rating to comply with the 
provisions of House Bill 2. That manual will retain its present title, and will 
be called merely "the Plan" in the Order. Many of the differences between the 
existing Plan and the revised Plan are editorial in nature, and are set forth 
only in the exhibits attached to the Order. However, the Order also has attached 
outline materials entitled, "Changes to the Experience Rating Plan/Summary," 
which describe some of the editorial changes, as well as substantive changes 
being made.
The most notable changes to the Plan for experience rating are as follows.
An exemption from experience rating is established for policies written on a 
combined single limit basis with either a bodily injury or property damage 
deductible equal to or greater than basic limits.
Prior to March 1, 1992, the Insurance Code prohibits the application of 
deviations to an experience rated risk. On and after March 1, 1992, House Bill 2 
does not prohibit applying the flex rates to experience rated risks. A 
clarification of how a flex rate will apply to an experience rated risk is 
provided by example.
Clarification is made that there are two places where rating information can be 
obtained, subject to the stated requirements.
Provision is made for the designated agent (which is currently TAISO) of the 
Department to charge reasonable fees to offset expenses for providing 
information.
Many of the differences between the existing Manual and the new Rating Manual 
are editorial in nature, and are set forth only in exhibits attached to the 
Order. However, the Order also has attached outline materials entitled, "Outline 
of Conversion/The Texas Automobile Manual to the Texas Automobile Rules and 
Rating Manual," which describe many of the editorial changes as well as 
substantive changes being made.
The most notable differences between the existing Manual and the new Rating 
Manual are as follows.
Existing references to the "State Board of Insurance" are changed to the "Texas 
Department of Insurance" throughout the Rating Manual where appropriate.
Existing references to "standard rates" and "manual rates" are changed to 
"benchmark rates" throughout the Rating Manual.
Existing references to the "Texas Automobile Insurance Service Office" (TAISO) 
are changed to "designated agent of the Board" throughout the Manual to use a 
more generic term to designate a non-Departmental entity rather than the mention 
of a specific organization.
The existing $10 minimum premium in Rule 10 is increased to $25 because of the 
change in Rule 13 that eliminates short rate calculation of premium refund, 
thereby eliminating the penalty for an insured requesting cancellation.
The endorsements that have been deleted through merger into a new endorsement 
are referenced on an exhibit attached to the Order.
The endorsements to be phased out by September 1, 1992, are listed on an exhibit 
attached to the Order.
The reasons for amending the various commercial endorsements are briefly 
referenced on an outline exhibit attached to the Order.
Endorsement NR-lA eliminates short rate calculation of premium refund, thereby 
eliminating the penalty for an insured requesting cancellation of the Non-
Resident Policy.
The amendments to the Rating Manual and to the Plan are proposed to be adopted 
effective on and after 12:01 a.m., March 1, 1992.
Copies of the full text of the proposed new Rating Manual and amendments to the 
Plan for experience rating are available for review in the office of the Chief 
Clerk of the Texas Department of Insurance, 333 Guadalupe, Austin.
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 27, 1991.
TRD-9114934
Linda von K. Quintus-Dorn
Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328
       
The State Board of Insurance will consider adoption amendments to the Standard 
Provisions for Automobile Policies (the Standard Provisions), in regard to 
minimum coverage for the Texas Personal Auto Policy, at a meeting scheduled for 
8:30 a.m., January 8, 1992.
These amendments are being made primarily as a result of a new statute 
designated as House Bill 2 in the 1991 regular session of the legislature. That 
statute amended the Insurance Code, Article, 5.06(1) to require the board to 
adopt a policy form and endorsements for each type of motor vehicle insurance 
subject to the Insurance Code, Chapter 5, Subchapter A. The coverage provided 
under an insurance policy for that type of insurance in this state. The Order 
amends the Standard Provisions in regard to personal automobile insurance only.
The new Texas Personal Auto Policy (PAP), including its Special Instructions, is 
the minimum coverage form to be used for personal auto insurance for all 
policies that become effective on and after 12:01 a.m., March 1, 1992. However, 
it is the board's intent to allow sufficient time for insurers to use at least 
some of their existing supply of old policy forms and endorsement forms. 
Therefore, an insurer may use the existing PAP and amendatory endorsement forms 
in effect immediately prior to the Order for all policies that become effective 
prior to 12:01 a.m., September 1, 1992, provided such policies also include new 
Endorsement 594. Endorsement 594 has numerous provisions that bring the existing 
PAP into substantive conformance with the new PAP.
Many of the differences between the new PAP and the existing PAP are editorial 
in nature, and are set forth only in the exhibits to the Order; however, the 
most substantive changes are also described in the body of the Order. First, the 
liability coverage is amended to include prejudgment interest within the 
description of damages which the insurer will pay on behalf of a covered person. 
This change makes the policy conform in this respect to the forms being used in 
most other states, and it broadens coverage.
An exclusion under liability coverage and an exclusion under physical damage 
coverage, are modified to specify that these exclusions apply to a loss 
resulting from seizure of an auto by law enforcement officers as evidence in a 
case against the insured under certain statutes if a conviction results.
These changes result from a new statute designated as House Bill 1827 in the 
1989 regular in the 1989 regular session of the legislature.
Under medical payments coverage and under personal injury protection coverage, 
new provisions are made concerning assignment of payment for medical expenses in 
order to comply with the previously mentioned House Bill 2. These changes result 
in the addition of a clause to the General Provisions portion of the policy, 
referencing such changes.
In the coverage for uninsured/underinsured motorists, the definition of 
"underinsured motor vehicle " (which is also deemed an "unminsured motor 
vehicle") is reworded to conform more clearly with the interpretation of the 
Texas Supreme Court in the Stracener case. For that same reason, this coverage's 
limit of liabilty provision, clause A.II. is amended to specify more clearly the 
rights of the policyholder.
The General Provisions of the policy are amended to require that any premium 
refund is to be made on a pro rata basis, subject to the policy minimum premium. 
This change corresponds with a proposed change to the Cancellation Rule and 
Policy Minimum Premium Rule, by which short rate refunds will be eliminated. The 
result will be larger refunds when cancellations are made by the policyholder.
The amendments to the Standard Provisions are proposed to be adopted for 
policies to be effective on and after 12:01 a.m., March 1, 1992.
Copies of the full text of the proposed new Rating Manual and amendments to the 
Standard Provisions are available for review in the office of the Chief Clerk of 
the Texas Department of Insurance, 333 Guadalupe Street, Austin.
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administratlve 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 27, 1991.
TRD-9114935
Linda von K. Quintus-Dorn
Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328
       
The State Board of Insurance will consider adopting amendments to the Standard 
Provisions for Automobile Policies (the Standard Provisions), in regard to 
minimum coverage for the Texas Personal Auto Policy, at a meeting scheduled for 
8:30 a.m., January 8, 1992.
These amendments are being made primarily as a result of a new statute 
designated as House Bill 2 in the 1991 regular session of the legislature. That 
statute amended the Insurance Code, Article, 5.06(1) to require the Board to 
adopt a policy form and endorsements for each type of motor vehicle insurance 
subject to the Insurance Code, Chapter 5, Subchapter A. The coverage provided 
under an insurance policy for that type of insurance in this State. The board's 
order will amend the Standard Provisions in regard to the Business Auto Coverage 
Form, Excess Liability Policy, Mobilowners Policy, the Non-Resident Auto Policy, 
Mechanical Breakdown Policies, and the Single Interest forms.
The new policies, including their Special Instructions, General Instructions, 
and Reference Notes attached to the Order, are the minimum coverage forms to be 
used for auto insurance policies that become effective on and after 12:01 a.m., 
March 1, 1992. However, it is the board's intent to allow sufficient time for 
insurers to use at least some of their existing supply of old policy forms and 
endorsement forms. Therefore, an insurer may use the existing policy forms and 
amendatory endorsement forms in effect immediately prior to the Order for all 
policies that become effective prior to 12:01 a.m., September 1, 1992, provided 
such policies also include the appropriate endorsements and revised declarations 
pages, which are attached to the Order. However, the above procedure cannot be 
used for the Excess Liability Policy, as there is no endorsement to bring the 
old form into compliance with the new forms.
Many of the differences between the new forms and the existing forms are 
editorial in nature, and are set forth only in the exhibits to the Order. 
However, the Order also has attached outlines, entitled "Summary of Changes to 
Commercial Endorsement TE 00 30D" and "Summary of Changes for the Texas Standard 
Provisions for Automobile Insurance Policies," which describe may editorial 
changes, as well as substantive changes being made.
The most notable changes are as follows.
The required language for the display of an insurer's toll free telephone number 
is shown on the declarations page of each policy form.
Each policy form (other than Single Interest form and Mechanical Breakdown 
forms) is revised to require pro rata refund, regardless of how cancellation 
occurs.
each reference in the policy forms to the Texas Automobile Insurance Service 
Office is revised to "designated agent of the Department."
The BAP, Garage, and Truckers policies are modified specifically to exclude 
coverage for seizure of an auto by law enforcement officers under a controlled 
substances statute. (These exclusions comply with House Bill 1827, 1989 regular 
legislative session).
The amendments to the Standard Provisions are proposed to be adopted for 
policies to be effective on and after 12:01 a.m., March 1, 1992.
Copies of the full text of the proposed new Rating Manual and amendments to the 
Standard Provisions are available for review in the office of the Chief Clerk of 
the Texas Department of Insurance, 333 Guadalupe Street, Austin.
This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register Act.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt.
Issued in Austin, Texas, on November 27, 1991.
TRD-9114933
Linda von K. Quintus-Dorn
Chief Clerk
Texas Department of Insurance
For further information, please call: (512) 463-6328